In my practice, one of the things that I often deal with is change . . . or sometimes lack thereof. I see companies at both ends of the spectrum when it comes to change. Some are in a constant state of flux – desperately trying to change in order to find something that works. Others are so afraid of change they won’t try anything new. I talked a company during 2010 uses green ledger sheets for their accounting! They are wedded to the past.
Some companies are trying to do a little bit of everything and aren’t doing anything well. This is almost always a recipe for disaster. When companies don’t commit to goals and objectives it is easy for them to lose their way. They may start down a path only to change direction before they are able to see results. They are always “sticking their toe in the water” to gauge the temperature but never diving in and committing to an idea or objective. They are dabbling. They have tried to change so many times that future attempts are lost on the organization. These are the companies that are in a constant state of flux. Chaos rules.
At the other end of the spectrum are companies (usually guided by a single majority owner) that are afraid of committing to change. They continue to do things the way they have always done them. As a result, their market share erodes or they end up owning 100% of a shrinking market. Their competitors have walked away. In rare cases this may be a lucrative spot, but in most they are serving a handful of customers who have refused to change as well. Often, the company is serving the current owner but doesn’t have a robust future (and won’t unless the next generation of management shakes things up and moves the company forward).
It’s that time of year where most companies are wrapping up 2010 activity and thinking about 2011. It’s a natural time to ask oneself what you want the company to look like at the end of 2011. Will you be satisfied if your company looks the same at the end of next year as it does today?
In order to truly be successful, one has to commit to an objective. If you’re a company that dabbles and is in a constant state of flux, it’s important to decide on a few key priorities and stick to them. On the other hand, if you’re one of those companies that are afraid to change, I’d encourage you to start making incremental changes in order to build momentum. Meaningful change is hard. But anything worthwhile comes at a price.
What do you want to change during 2011?
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your cash is flowing. know where.®
Ken Homza
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