Learn the Art of the Pivot for Mid-Market Companies Through Leadership Coaching
by Scaling Up Coach, Gord Smith
The last three years have been unprecedented for businesses, creating a challenging situation for those without leadership coaching. We have seen a black swan event in the form of a global pandemic that forced millions of people to stay home for months. This was followed by several strong headwinds that have turned industries upside down, including inflation, supply chain issues, the recession risk, and the invasion of Ukraine.
In the face of these issues, great entrepreneurs can identify opportunities and the need for pivots and execute the shift successfully. A pivot is a dramatic change in direction; it involves a potential for more profit and revenue. However, it also carries many potential risks. Pivoting can take a variety of different forms, including finding new:
· Market segments
· Distribution channels
· Products
· Pricing strategy
· Industries to dive into
Real-Life Pivot Examples
We’ve seen some excellent examples of pivoting companies in the last several years. A classic example comes from the streaming giant Netflix, which shifted from providing DVD shipping to offering customers streaming services and experiencing record growth. More recently, when brick and mortar businesses shifted during the pandemic to e-commerce, they allowed customers to pick up items curbside, providing takeout food, and otherwise adjusting to new shopping patterns.
Businesses facing today's challenging economic landscape need to consider the value of a pivot in their industries. We will explain what you need to know about this process and how you navigate it successfully.
Complications That Lead to a Need for a Pivot
Business owners need to guard against potential complications that can derail their companies. The headwinds that have thrown many organizations off course will continue for the foreseeable future. The time between major geopolitical events also appears to be shortening. In the last three years, we have experienced a series of events that may have once been considered once-in-a-decade events, all condensed into this short timeframe.
This creates a situation where entrepreneurs must prepare to pivot quickly and frequently. This pivoting can help companies navigate a variety of different obstacles, including:
· Hitting a revenue plateau
· Intense competition in the market space
· Poor financial performance
· Limited traction within a market
Therefore, knowing how to pivot your organization can help you set yourself up for success.
Learn more about Scaling Up Coach Gord Smith here >
