The business landscape is becoming increasingly challenging, competitive, and unforgiving. In such an environment, we cannot afford to be hindered by inertia.
One of the fastest ways to render a business irrelevant is by clinging to the phrase, “That’s how we’ve always done it.” It’s tempting to rely on established ideas and processes. After all, if a business has been built on a particular way of doing things, why take the risk of trying something new?
However, here’s a compelling reason to consider change: of all the companies listed in the 1955 edition of the Fortune 500, a staggering 87% no longer exist today, largely due to their failure to address disruptive forces within their industries. Ironically, it is the inertia of sticking to old ways that can lead to the demise of businesses. The pace of change in our world is accelerating, and failing to adapt can be fatal.
The problem lies in the fact that the practices that initially brought success to a company can eventually lead it into a state of stagnation. As businesses achieve success, they naturally begin to codify, refine, and formalize their policies and procedures. A small bakery may be able to be flexible and improvisational when baking this week’s batch of lemon cupcakes, but a large corporation like Little Debbie or Hostess must have precise ingredient specifications and recipes for its products.
As companies mature in any industry, they naturally develop strong organizational norms and processes to maintain their success. These habits are crucial for initial success. However, if they want to sustain their success, they must also learn how to break free from those very habits.
Here are four simple strategies that businesses can adopt to think and act more like startups.
1. Avoid inertia and embrace change
Businesses should avoid the trap of complacency by constantly questioning and challenging their existing practices. Stagnation can be the downfall of a company, so it’s important to be open to new ideas and willing to take calculated risks.
2. Break free from stagnant practices
It’s essential for businesses to recognize when their tried-and-true methods are becoming outdated and holding them back. They should be willing to let go of old processes and embrace new approaches that align with the evolving needs of the market.
3. Be open to transformational changes
The business landscape is characterized by constant transformation. Established companies need to be proactive in identifying emerging trends and disruptive forces in their industry. By embracing these changes and adapting accordingly, they can stay ahead of the competition.
4. Foster a culture of adaptability
Leaders in established companies must foster a culture that encourages innovation, flexibility, and adaptability. This involves creating an environment where employees feel empowered to challenge the status quo, experiment with new ideas, and continuously improve processes.
By following these four strategies, businesses can position themselves for long-term success in an ever-changing business landscape. It’s crucial to recognize that entrepreneurship is not solely the realm of startups but a mindset that all businesses must embrace to thrive.
