As the world continues to evolve, industries must keep up with the changes or risk falling behind. One of the most significant challenges that companies face is dealing with disruptive trends that can shake up their business model.
Disruptive trends come in many forms, from technology advancements to changing consumer behaviors. When companies fail to anticipate and adapt to these changes, they risk losing their competitive edge and relevance. The good news is that there are ways to navigate these disruptions and come out stronger.
Here’s a guide to navigating disruptive trends in your industry:
- Make Disruption a Year-Round Conversation
To stay ahead of disruptive trends, it’s important to make them a year-round conversation. Company leaders must create an open dialogue to discuss the potential threats to their business model regularly. These discussions should include semi-annual meetings to identify potential threats and prioritize them, quarterly assessments to track the success of potential threats, and quarterly meetings to update leadership on potential solutions.
By making disruption a year-round conversation, companies can prepare for potential threats and develop strategies to adapt quickly.
- Develop Monitoring Programs
Not every threat will be a business-ending event, but it’s crucial to track and monitor them to prompt a response when needed. Many businesses are developing internal capabilities or leveraging external experts to monitor and track threats, including technology advancements, mergers and acquisitions, competitive hiring practices, customer growth rates, and declining membership or customer numbers.
Regular monitoring and reporting on these types of threats will help leaders prioritize and respond accordingly.
- Practice “War Games”
In some cases, a major disruptor might require a more dramatic response. In such situations, companies can execute a business “war game” scenario assessment to understand how a strategy change could affect the landscape and members or customers.
War gaming allows participants to better understand a threat and how new or existing value propositions might stand up in the market. These scenario-based exercises can also instigate brainstorming on how to respond or identify other decisions that might be needed to adapt the business model.
- Develop a Risky Strategy
Sometimes, embracing risk is the most challenging decision leaders must make, but it can also be the most rewarding. Developing a strategy that carries risk can deliver huge rewards if executed correctly. Examples of such strategies include offering membership with no fees, discontinuing national conferences, emphasizing regional events, or developing a certification.
When facing a clear and dramatic threat, doing what you’ve always done simply won’t work. Companies must be willing to take risks and embrace new strategies to remain relevant and competitive.
Takeaway
In the ever-evolving landscape of business, disruptive trends can either make or break a company. It is not a matter of if, but when, an organization will encounter a major disruption that has the potential to completely upend its business model. However, it is crucial to understand that disruptive trends don’t have to be a death sentence for a company.
By proactively engaging in conversations about disruption year-round, leaders can cultivate a culture that is better equipped to handle these threats when they arise. Investing in monitoring programs to track and analyze potential threats can also help companies stay ahead of the game and make informed decisions.
In addition, companies can practice “war games” to simulate potential scenarios and identify new strategies to adapt their business model. This approach can provide valuable insights that may not be readily apparent in everyday operations.
It’s also important to note that embracing risky strategies is a necessary part of navigating disruptive trends. While it may be tempting to maintain the status quo, this can ultimately be the downfall of a company. By taking calculated risks and exploring new approaches, organizations can position themselves as disruptors rather than being disrupted.
In summary, navigating disruptive trends is not easy, but it is essential for the long-term success of any company. By being proactive and strategic in their approach, organizations can come out stronger and more resilient on the other side of disruption. It is time for companies to recognize the importance of developing a disruption-proof culture and taking the necessary steps to stay ahead of the game.
