As a CEO it is acknowledged there will be countless times where it is necessary to address an organisation’s strategic approach to change and potentially pivot. Pivoting should only be considered when deemed absolutely necessary and is applicable irrespective of the organisation’s size. More recently we have seen the need for many businesses to pivot due to the current economic climate.
Being fully prepared and one step ahead of the survival game will tremendously support the CEO but equally the management team too. Albeit some pivots appear to happen overnight it is necessary to ensure that an overall business analysis is completed quickly to enhance any vital decision the board will need to take.
Pivot should be considered as a new strategy added to every board meeting agenda ensuring a short and long-term view is regularly taken of the marketplace position and equally address sustainability and longevity in the sector.
By evaluating the potential future of the sector, you are in, the company values, a reallocation of team roles and their responsibilities and also presenting a clear and concise communication of personal objectives a smooth transition will be possible.
Undoubtedly there will be no perfect time to pivot however it is a risk that management will all need to buy into. The future of the business will depend on a mutual agreement to the new vision and your people.
It might be the best time to pivot your organisation if?
Decipher whether the pivot is a temporary solution or a complete change for the overall organisation quickly as this will support any decisions made throughout the departments, teams and staff.
Likewise, your people will need time to find their bearings, settle into new roles and responsibilities and your new business model may require a need to reassess everyone’s strengths, weaknesses and hidden talents. Crystal clear communication and transparency will be needed to gain their trust and desire to move forward with your decisions.
Every organisation faces challenges and risks daily, however being prepared with an overall strategy can help reduce disaster take the pain out of the tougher decisions to be made.
Whilst today many people associate Netflix as a resource for new movies or to binge-watch some of their original series it was originally a service that delivered DVDs to your mailbox. They recognised the opportunity to add a streaming service, identified a changing market and adapted accordingly. Additionally, they saw the need for a wide variety of content and pivoted to add a production company.
PayPal started out as a method to processing payments and gained recognition as the preferred payment method for eBay. As it identified is could stand independent of eBay it managed to adapt to the world of online banking and smartphones and is still a preferred method for money transfers globally.
Instagram initially started out as the online company that allowed users to check in at their favourite spots and to share photos. As it became clear that the most common feature was sharing photos, the founder saw greater potential. He decided to streamline the app and called it Instagram. Two years later Facebook purchased Instagram for $1 billion.