Five strategy questions business leaders must ask
We are in that season where millions of dollars are spent collectively in strategic planning.
DESPITE the fact that millions of dollars are spent into these exercises sometimes there are not meaningful results being seen.
One of the things we need to normalise in this season is a culture of hard questions.
Quality questions birth quality conversations. In disruptive times that we are living in where nothing is certain, there is need to constantly engage through questions and shape the direction of your organisation and business.
This week I want to take you through five questions that you need to ask yourself as a business leader.
Question 1 — What would the company that could put you out
of business look like, and how do you become that company?
The world of business is a jungle, its either you eat or you will be eaten. History has recorded of how several businesses were disrupted, and some permanently went out of business.
Even locally, there were certain businesses for a long time that dominated the market, and all of a sudden some players came through with an innovative, and versatile strategy that changed the landscape altogether.
Big businesses are not immune from failure, they are vulnerable if they do not constantly introspect and look around for opportunities for change and growth.
It is Machiavelli who once said, “Whoever desires constant success must constantly adjust to the changes in the environment.”
Businesses that relax, and think that they are invincible are indeed ripe and ready for disappointment. Do not ever be tempted to fall into the bracket of relaxing, and thinking that there is no one out there who could take your market by storm.
We are living in an interesting world. Things have changed, and will continue to change. We are in the digital economy, where billions of dollars are transacted on mobile gadgets.
Whoever thought in the 90s that someone who started as an online bookseller would supply furniture, clothing, computers, and even groceries?
Amazon has changed how business is being done. With cash to spare, Jeff Bezos has now made his mark as well in the space industry through Blue Origin.
Nothing is guaranteed. Constantly think about how you can cannibalise your core, and disrupt yourself. What got you here is not going to get you there, neither is it going to keep you there.
Forbes reports that there are more than 2 000 billionaires in the world today, more than at any time in history.
The increase in the number of billionaires is not due to inflation. Rather it has come from innovation. There is no industry that is immune to disruption, and the changes that are to come.
Sadly, even if you cannot see what is coming, your business remains under threat.
Let’s go back to the question, What would the company that could put you out of business look like, and how do you become that company?
This requires you to play the Devil’s Advocate, and to think of what this business would be like. What is it that it will be doing that will drive you out of business.
This is not going to be an exciting exercise as it requires you to open yourself up for serious examination. It will leave your business much better once you figure it out. Fire proof yourself by venturing into this exercise.
Lessons from Nokia CEO Speech
You may have used a Nokia phone in the early days of mobile communications technology in Zimbabwe.
At one point in time Nokia had a formidable footprint and market share in the whole of the African continent. But this changed. Nokia was eventually acquired by Microsoft. Nokia CEO ended his speech saying this “we didn’t do anything wrong, but somehow, we lost”.
During the press conference to announce NOKIA being acquired by Microsoft, Nokia CEO ended his speech saying this “we didn’t do anything wrong, but somehow, we lost”. Upon saying that, all his management team, himself included, teared sadly.
Nokia was a strong and respectable corporation. Incorporated in 1865, it became one of the biggest corporations in the world.
What happened?
There are several explanations, and the dominant one is that a dynamic, evolving marketplace outpaced company leaders’ strategic thinking.
The world changed too fast. Their opponents were too powerful. This is the reality of business today, changes are happening too fast, and new and formidable competition is rising. Even the existing competitors are reinventing themselves and reclaiming market shares at times.
Not being able to recognise the terrain, and the environment becomes one of the biggest mistakes of any business leader. Nokia missed out on learning, they missed out on changing, and thus they lost the opportunity at hand to make it big.
Not only did they miss the opportunity to earn big money, they lost their chance of survival.
So, did they do anything wrong? Contrary to the CEO, they did many things wrong.
You cannot be slow in a fast changing environment. If you are not innovative, do not think that everyone will stop for you.
You can never stop the CHANGES in technology. The results do not lie, they should have moved on and learnt to position themselves for the future.
Nokia was even slow to adapt. It invested millions in trying to develop an operating system, but this did not change its fortunes.
If you don’t change, you shall be removed from the competition. If you do not develop yourself to stay in business, someone will develop themselves and drive you out of business.
Those who refuse to learn and improve, will definitely one day become redundant and not relevant to the industry. They will learn the lesson in a hard and expensive way. Your thoughts and mind-set have to catch up with time, so that you will not be eliminated.
The advantage you had yesterday, will be replaced by the trends of tomorrow. You don’t have to do anything wrong, as long as your competitors catch the wave and do it RIGHT, you can lose out and fail.
It is no longer enough to do the right things, and things right, you have to think differently, and always be on the lookout because you are in a jungle. Eat or you will be eaten.
Constantly change and improve yourself. You will be giving yourself a second chance. Do not be forced to change, initiate change rather than to wait to change as a response to pressure.
Being forced by others to change will make you vulnerable. Be the one who forces competition to change. Be aggressive and be in the lead, and survive being discarded into the dustbins of antiquity.
Many people want change but very few want to change. Interestingly, many people want the benefits of change but they do not want the inconvenience of change.
“Change is hard because people overestimate the value of what they have — and underestimate the value of what they may have to gain by giving that up.”(James Belasco and Ralph Stayer). Be ready and willing to change.
Part II — coming next week . . .
Arthur Marara is a corporate law attorney, keynote speaker, corporate and personal branding speaker commanding the stage with his delightful humour, raw energy, and wealth of life experiences. He is a financial wellness expert and is passionate about addressing the issues of wellness, strategy and personal and professional development. Arthur is the author of “Toys for Adults” a thought provoking book on entrepreneurship, and “No one is Coming” a book that seeks to equip leaders to take charge. Send your feedback to greatnessclinic@gmail.com or Visit his website www.arthurmarara.com or contact him on WhatsApp: +263780055152.