By Marie Mansheim, Senior Consultant—Growth & Strategy Practice Leader
Maybe yours is a hyper-dynamic market or perhaps there’s an aggressive challenger that’s chipped away your competitive advantage. Then again, what if there’s a significant technology change poised to dramatically alter your industry? Are these signs it’s time to change your business strategy?
Maybe. Maybe not.
Most companies realize they can’t count on using the same strategies that made them successful forever. Reliable growth depends on trend-spotting, early recognition of industry shifts, and decisive action in the face of market discoveries. It then requires astute and effective responses to those internal and external factors affecting their business.
However, changing strategy is not without risk, and irrefutable evidence for shifting is rare. Therefore, prudent evaluation is always recommended. Organizations can learn to recognize those indicators that suggest a need for evaluation in order to then adjust their course, change direction, or simply take assertive action to fine-tune their existing strategies.
Here are six signs that it may be time to re-evaluate your strategy:
- The rate of growth in your current market is substantially different than the rate of growth in the market overall.
- Profits and revenues are projected further into the future than what the organization can support.
- A once-meager competitor has now become a significant threat, endangering and disrupting your market foothold.
- Core customers can no longer afford you.
- Capabilities or their market segments are being viewed as commodities.
- Technological advances or developments within regulatory environments are bringing big changes to your industry.
These and other factors can signify it’s time for a strategy change. Once recognized, your organization should collect the additional game-changing research and rationale needed to support a strategy shift. That includes accurate translation of customer perceptions and the effective application of market analytics. Such information gives you and your decision-makers better visibility into the levers that push profitability and growth.
When the time comes, engage analysis and embrace change.
When all signs point to change, take the necessary steps to carefully assess then confidently transform your strategy so as to assure your continued success. After all, a willingness to reinvent your business or simply make slight shifts in your strategy can itself be considered a strategic asset.
Need help recognizing the signs that point to a strategy shift? Want to learn more about evaluating a change?
Contact Marie Mansheim.