GUEST POST from Mike Shipulski
Everything has a half-life, but we don’t behave that way. Especially when it comes to success. The thinking goes – if it was successful last time, it will be successful next time. So, do it again. And again. It is an efficient strategy – the heavy resources to bring it to life have already been spent. And it is predictable – the same customers, the same value proposition, the same supply base, the same distribution channel, and the same technology. And it is dangerous.
Success is successful right up until it isn’t. It will go away. But it will take time. A successful product line will not fall off the face of the earth overnight. It will deliver profits year-over-year and your company will come to expect them. And your company will get hooked on the lifestyle enabled by those profits. And because of the addiction, when they start to drop off the company will do whatever it takes to convince itself all is well. No need to change. If anything, it is time to double-down on the successful formula.
Here’s a rule: When your successful recipe no longer brings success, it’s not time to double-down.
Success’ decline will be slow, so you have time. But creating a new recipe takes a long time, so it is time to declare that the decline has already started. And it is time to learn how to start work on the new recipe.
Hardship 1 – Allocate resources differently. The whole company wants to spend resources on the same old recipes, even when told not to. It is time to create a funding stream that is independent of the normal yearly planning cycle. Simply put, the people at the top have to reallocate a part of the operating budget to projects that will create the next successful platform.
Hardship 2 – Work differently. The company is used to polishing the old products and they don’t know how to create new ones. You need to hire someone who can partner with outside companies (likely startups), build internal teams with a healthy disrespect for previous success, create mechanisms to support those teams and teach them how to work in domains of high uncertainty.
Hardship 3 – See value differently. How do you provide value today? How will you provide value when you cannot do it that way? What is your business model? Are you sure that’s your business model? Which elements of your business model are immature? Are you sure? What is the next logical evolution of how you go about your business? Hire someone to help you answer those questions and create projects to bring the solutions to life.
Hardship 4 – Measure differently. When there is no customer, no technology and no product, there is no revenue. You must learn how to measure the value of the work (and the progress) with something other than revenue. Good luck with that.
Hardship 5 – Compensate differently. People that create something from nothing want different compensation than people that do continuous improvement. And you want to move quickly, violate the status quo, push through constraints and create whole new markets. Figure out the compensation schemes that give them what they want and helps them deliver what you want.
This work is hard, but it’s not impossible. But your company doesn’t have all the pieces to make it happen. Don’t be afraid to look outside your company for help and partnership.
Image credit: Pixabay
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