Key questions every leader must ask: Part 1
AS the year comes to an end, “strategy” is a buzzword that is being said in many corporate circles. Although millions of dollars are spent in strategy sessions, sometimes no meaningful results are achieved in these sessions.
One of the things we need to normalise this season is to promote a culture of hard questions. We need to think of quality questions and give birth to 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 questions that you need to ask yourself as a business leader.
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, it is either you eat or you will be eaten.
History has records of how several businesses were disrupted, and some permanently went out of business. Even locally there were certain businesses that for a long time dominated the market, and all of a sudden some players came through with innovative, and versatile strategies that changed the landscape.
Big businesses are not immune to 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, daily. 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, but rather 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 will always be under threat.
Let us 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 in a better situation once you figure it. 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, Nokia had a formidable footprint and market share in the whole of African continent.
But this changed. Nokia was eventually acquired by Microsoft. Nokia CEO ended his speech saying this “We did not do anything wrong, but somehow, we lost”.
During the press conference to announce that Nokia was being acquired by Microsoft, the CEO ended his speech saying this “We did not do anything wrong, but somehow, we lost”. Upon saying that, all his management team, himself included, were in tears.
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 a 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 re-inventing 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, Nokia should have moved positioned themselves for the future.
Nokia was slow to adapt. It invested millions in trying to develop an operating system, but this did not change its fortunes.
If you do not 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 lessons 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 advantages you have yesterday, will be replaced by the trends of tomorrow. You do not 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, you have to think differently, and always be on the lookout because you are in a jungle. You either have to eat or you will be eaten.
Constantly change and improve yourself. You will be giving yourself a second chance. Do not be forced to transform, 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 in the lead, and survive being discarded into the dustbins of antiquity.
Many people want change but very few want to transform. Interestingly, many people want the benefits of change but they do not want the inconvenience of it.
“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 transform. 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.
◆ Feedback: greatnessclinic@gmail.com or visit website www.arthurmarara. com < http:// www. arthurmarara. com>, WhatsApp: +263780055152.