Cup of Joe

Recent headlines have shown us that really tough economic times are an equal opportunity event, with the propensity to take out the 800-pound gorilla almost as easily as it can the fairly younger or smaller companies.   In fact, sometimes the bigger and more evolved companies have a harder time making the necessary changes in time that would allow them to survive and evolve through the crisis themselves.  The good news is that the Seven Missing Links that ensure successful corporate evolution (see my last blog) can be applied by any size organization.   It is critical, however, that the evolution or crisis plan is understood and embraced by those who will have to implement it.

While all of the missing links rely on people to make changes and transition, it should be noted that the last link is far from being considered the least link, and should not be underestimated:

7. A company-wide belief that the transition is possible.

It’s imperative to be certain that the entire organization is on board and equipped to respond appropriately to achieve your goal before you announce and implement your change plan.  Even if your plan is perfect, and seemingly “doable,” the execution of that plan is dependent on the employees’ perception of that plan. In Booz & Company’s Economic Crisis Survey fielded in December 2008, they found that 34% of C-level executives expressed doubts about the crisis plan put forth.  Not surprisingly, 51% of managers not reporting directly to the CEO had doubts about the company’s ability to implement those crisis plans.[1]  Remember that our perceptions drive our behaviors, which ultimately decide the outcome.  If your employees or senior management do not believe in the transition, the transition will probably fail.

I have worked with countless organizations who get stuck somewhere along the way as they attempt to evolve and adapt to their new market environments. I’ve found that The Seven Missing Links can serve as one way to assess whether your change plan has what it takes to respond to changes effectively and evolve to meet the next challenge.  And never forget that the effectiveness of any plan will always be determined by the quality or strength of the plan AND the willingness of those who will be asked to implement it.   One without the other will create something less than the desired result.  

This article is available for reprint with permission from Joe Caruso and Caruso Leadership Institute.

[1] [Source: “Recession Response: Why Companies are Making the Wrong Moves”, Booz & Company, December 2008].

“Most businesses get to the top, and stay there, because of their ability to anticipate and respond to change.”

More than half of today’s successful Fortune 500 companies were started during a bear market or a recession, according to a report released by the Ewing Marion Kauffman Foundation[1].  No matter when or how your organization started, this study suggests that opportunity indeed exists in difficult economic times, and your organization’s ability to respond to challenging market conditions is paramount to your longevity and success. 

When business climates change radically companies can’t afford to merely  “redouble their efforts” or “try to do more with less” (two sayings I hear way too often).  Radical changes in markets require that companies learn to evolve. Organizations that fail to evolve eventually die out. 

What do businesses need to do in order to evolve and survive radical change?   Why do some survive and even thrive in tough economic times while others die off? 

Some time ago I examined nearly one hundred organizations that, despite their best efforts, weren’t able to adapt sufficiently in order to survive changes.  I found seven key elements that—if missing from the businesses approach to change—could actually prevent the business from evolving.  I call them…wait for it…The Seven Missing Links.   While each of the seven are important in and of themselves, it is the combination of all seven links that truly contributes to making a company evolve to the next level.

1.     A common goal that is both realistic and specific, addressing how to respond to the changing economy or market conditions.         

2.     An understanding of the employee’s role and responsibility to the transition.

3.     A sincere commitment from “the top” to lead in an undeniable manner.

4.     A willingness to “let go” of old debilitating behaviors, habits, procedures and approaches that will not serve the new goal.

5.     A doable plan that invigorates the organization and goes beyond the stale and lifeless buzzwords of a “new company-wide program.”

6.     A specific, simple system to measure the progress of both the company and the contributing individual(s).

7.     A company-wide belief that the transition is possible.

If your management team continues to throw out buzzwords that perpetuate stagnation, like “out-of-the-box-thinking” and “strategic planning”, it’s time to get real. Stop wasting your time, and sit down and examine which evolutionary links are in fact missing from your organization today.   If everything looks good – congratulations, your evolution is nearly assured and your company can continue to survive and even thrive.  If it doesn’t, you have some work to do. 

This article is available for reprint with permission from Joe Caruso and Caruso Leadership Institute.

[1] “The Economic Future Just Happened,” Diane Stangler, Sr. Analyst, Author of Study, The Kauffman Foundation