With so much change happening in business—from new tariffs and globalization to the unprecedented impact of artificial intelligence—smart business owners understand the need to recognize and respond to market, customer, and/or industry changes.
But recognizing the need for change doesn’t necessarily translate into effective action.
A scattershot or panicked response to shifts in the market or a new competitor entering the fray isn’t the answer. Instead, a combination of smart leadership, effective communications, customer and employee feedback, and a smoothly operating supply chain can best help CEOs and business owners deal with constant change.
In this article, we look at ways of navigating business change, adapting to market shifts, and staying competitive. Here are answers to the questions business leaders ask themselves almost every day: How do I keep up with industry changes? How do I adapt to a shifting business landscape?
What Causes Change and Disruption In A Business Landscape?
In a global, interconnected world, any number of factors can disrupt business operations. Such factors include:
• New players entering an already crowded market
• Buyer behavior influenced by economic, cultural and/or governmental actions
• Changes in regulation and workplace compliance rules
• Emerging technologies such as AI, automation, and data analytics
• Natural or man-made disasters
Sometimes, these “change agents” can occur singly or concurrently. Either way, they can make a significant impact on your business. That’s why, as Republic Bank notes:
“Rather than fearing these changes, the key is to anticipate and respond to them effectively. By staying flexible and proactive, you can turn challenges into opportunities and keep your business thriving.”
Approaching the prospect of change with confidence and a sense of direction prepares a business for inevitable changes in the marketplace.
Why Leadership Counts In A Shifting Business Landscape
Nowhere is effective leadership more important than in navigating a business through difficult times. A leader must demonstrate passion for orchestrating effective responses to change, while also being as transparent as possible about organizational challenges and needs. This approach builds trust—a crucially important element that helps executives and employees alike confront change and minimize any negative impact.
What qualities exemplify strong leadership? CEOs and business owners must learn to cultivate greater patience, empathy, and flexibility—and be seen doing so. If a business leader promises to take specific actions in times of change, they must follow through, for the sake of the business and their own “can-do” reputation.
When the time comes to share information and inspire others to act, business leaders must be able to articulate what kind of change is happening, why it’s taking place now, and what steps must be taken to meet the challenge.
Other essential leadership traits include:
- The ability to “read” people and connect with them on an emotional level
- A willingness to commit to lifelong learning about the business and leadership in general
- Being adept at sizing up a situation, analyzing the pros and cons, and determining a course of action
Some CEOs and business owners may be “born” to lead, but in general, effective leadership starts with a commitment to grow in their position and inspire others to action.
What triggers business disruption?
So many elements are involved in business success that any number of differing disruptions can have a negative impact. The “culprits” of change include:
- New players in a competing industry
- Emerging technologies, digital and otherwise
- Changes in buyer behavior and purchasing trends
- Mergers and acquisitions
- Entering a new geographic market
- Responding to a natural or man-made crisis
Knowing what causes change can help in devising strategies to overcome the unfavorable effects of those changes.
Internal Communications Can Make or Break a Business
Employees are key assets in managing change. Clear communications among various stakeholders is probably the best tool for handling business disruptions. Crafting the right communications strategy will go a long way towards calming employees, shareholders, vendors, and so on. Here are tips to guide you through proper communication in the workplace.
Include the team in decision-making
Your team members are among the business’s best assets. When change occurs and action must be taken, do whatever possible to “involve them in the discussion, ask them about their perspectives, have them set new goals and commitments for their role in the organization.”
Be as transparent as possible.
Not every fact about business operations needs to be shared with your team. But being open in responses to questions from managers, employees, customers, and other stakeholders strengthens team loyalty. As Functionly, a DIY design software company, notes:
“Even if you don’t have all the answers … being open about what you do and don’t know builds trust. It’s like being the captain of a ship in stormy weather—your crew will feel more confident if they know you’re navigating with integrity, even if the destination is uncertain.”
Without trust and open communications, steering a course through difficult times is much harder to achieve.
Address uncertainty.
Like just about everyone else, any employee’s first reaction to new initiatives is fear and uncertainty. Explain why taking action is essential. If resistance persists, get at the underlying reasons, then be straightforward in addressing those concerns.
“Make sure everyone understands why the change is necessary,” suggests the HR technology company Justworks, “and how it will benefit the company and them individually.”
Support professional growth.
The better trained and knowledgeable your employees are, the more they can act as effective change agents within the company. Employees with enhanced skills provide tremendous value to any organization, as well as a stronger skillset with which to address changes in market dynamics.
Look into implementing a range of learning opportunities—from leadership and mentorship training to skills workshops, webinars, and other classes “that can elevate and empower your team.” Employees given opportunities to learn have greater incentive to stay with the organization, thus boosting overall retention rate.
How can we anticipate future market trends?
All the conditions mentioned above can be foreseen to some extent. The key is conducting market research that’s laser-focused on customer needs and preferences, competitor analysis, and industry fluctuations. In-depth market research consists of attending industry conferences, studying industry reports, and exploring a range of scenarios regarding potential risks and opportunities.
Market research can also incorporate findings from customer surveys and focus groups—another valuable resource for anticipating change.
Leverage the Voice of Your Customers When Making Decisions
In changing times, customers feel the same uncertainty as the businesses they support. That’s why it’s vital to listen to what they’re telling you. When businesses encourage customer feedback, they get a better grasp of changing buyer preferences and/or market trends changing in the foreseeable future. This information is invaluable in terms of anticipating customers’ future needs—a key step towards differentiating your business from the competition.
Another differentiating strategy focuses on enhancing customer service efforts. Buyers want rapid replies to their online inquiries, as well as easy-to-navigate websites and related digital resources. Many customers respond favorable to a company’s vibrant presence on social media platforms. The more businesses can meet (or exceed) customer expectations, the stronger its position in the marketplace.
Not sure what your customers are thinking? Businesses can amass large quantities of relevant data by using surveys, becoming more engaged on social media, and offering direct business-to-customer communications. Leveraging customer feedback is essential for remaining agile. As Fast Company notes:
“Offering loyalty programs, personalized discounts, or rewards for repeat customers can help create a stronger connection with your audience. Additionally, make sure your online presence is polished and optimized for mobile devices—most customers are browsing and shopping on their phones.”
Wherever possible, a personalized approach to the buying experience will help maintain customer loyalty.
Make Sure Your Supply Chain Is Dependable
The last place businesses want to see any major disruptions is in their supply chain. Anything that obstructs receiving materials and goods needed to operate will have a clear detrimental effect.
A comprehensive reevaluation of your supply chain can prevent many unforeseen complications. In addition to those vendors currently in your supply chain, being connected with other vendors can be very useful in uncertain times. Look for vendors who also vary in location.
A diverse supply chain enhances your ability to adapt to changes in market conditions.
Another option is choosing local suppliers. This approach can substantially decrease shipping waste and transportation emissions. Localized supply chains also foster community development and support local economies, a win-win for all involved.
Whatever strategy you pursue, clear communications is essential. Issues arise when a supply chain partner doesn’t fully grasp the range and scope of services your business is looking for. Take time to communicate more thoroughly with suppliers and work harder at building strong relationships. It’s well worth the effort.
How can we foster greater agility with respect to business operations?
It’s not easy, but business structure planning enhances a company’s ability to pivot. Keep these tips in mind:
- Explore ways to fine-tune product lines and strategies to meet changes in the market.
- Make a serious investment in research and development, so your business can meet new customer and/or market demands.
- Leverage the power of automation and related technologies to further improve each customer’s buying experience.
- Investigate expanding your product line or diversifying where that makes the greatest strategic sense.
- Consider partnerships or collaborating with other companies to access new markets.
- Empower your managers and employees to build their decision-making skills to meet changing customer demands.
- Eliminate bureaucratic roadblocks wherever possible, so new ideas and strategies can percolate and grow without burdensome red tape.
There’s plenty of action steps you can take to address economic and business uncertainty. It all starts with a mind-set that embraces, rather than fears, change.
Learn more about supply chain solutions by downloading our free TAB whitepaper, “Identifying and Overcoming Supply Chain Challenges.”
How Technology Helps Decision-Making
The good news is that advances in digital technology can help minimize disruption and aid in navigating a business through uncertain times. At perhaps the most basic level, every business should maintain an up-to-date and user-friendly website. Prospective online customers should be able to interact with (and buy from) your business through any device they choose.
Other digital technology options that help cope with change include:
- Keeping a viable presence on social media platforms (industry-based or otherwise)
- Enhancing your company’s e-commerce capabilities
- Leveraging AI and automation to assist with routine business operations
- Employing data analytics for insights into buying trends
- Using targeted advertising and search engine optimization to boost customer recruitment and retention
As Republic Bank notes, “Small businesses that use digital strategies effectively can compete with larger companies, even in unpredictable markets.”
Conclusion
Change is coming, whether we like it or not. The best strategy for CEOs and business owners is to prepare, as much as possible, for disruptions (both anticipated and unforeseen). Planning the right strategy means gaining a deeper knowledge of their industry; cultivating more effective leadership traits; leveraging constructive feedback from employees and customers; maintaining a reliable supply chain; and using the right technology to keep their organizations agile and ready for whatever is coming around the corner.
The good news is that CEOs and small business owners don’t have to “go it alone.” TAB Business Advisory Boards offer seasoned, practical advice to forward-thinking business owners who are ready to take their businesses to the next level.
Through a combination of peer advisory boards, one-on-one coaching from experienced professionals and a range of proven tools and strategies – you’ll be well-equipped to cope with disruption and get your business where you want it to go.
Want to learn more? Here’s how becoming a member of TAB can help you boost employee performance and strategize your company’s approach to success.
