The spinning business
In the good times, business decision-making seems to come easily. Every entrance into and exit from a market is perfectly-timed, almost driven by a corporate sixth-sense. Success breeds success, like a winning rugby or football team that seems invincible until, finally, a below-par performance leads to defeat. And then another. In an instant, the team – or company – has gone from a position where it cannot do anything wrong to a state where nothing seems to go right. Is it the sales strategy? What about new products or new technology? Where are our competitors? What are they doing over there? What have they spotted that we missed?
In the depths of the worst recession in recent history, the challenging economic climate created self-doubt like this across a range of business sectors. Retailers, car companies and especially the High Street banks became ‘spinning businesses’, caught in a strategic rip tide caused by the credit crunch, consumer – and shareholder – confidence, and government policy that seems to embrace the blame game. The ‘strategic drift’ this created swept away unwary companies, some of them household names, who missed a move by their competitors or a change in buying habits of their customers.
Despite the undoubted improvement in the economy over the past few years, the chances are that a number of businesses will still find themselves in danger of spinning out of control. Recognition and acceptance are critical first steps in dealing with the situation. It pays to take a step back at this stage and take a considered, structured approach that enables you to understand the real reason behind the change in your marketplace and take the necessary strategic steps to address it.
To learn more about strategic drift, please click on the link below to read our theme briefing on how to avoid becoming a spinning business.