How to know it’s time to change  - SmartBrief

All Articles Leadership Strategy How to know it’s time to change 

How to know it’s time to change 

Leaders can identify if they need to change their operations by analyzing these three categories, writes Dave Coffaro.

4 min read

By Dave Coffaro 08/04/23

LeadershipStrategy

change

Constantine Johnny/Getty Images

Albert Einstein said, “’The measure of intelligence is the ability to change.” What he didn’t elaborate on is knowing when it’s time to change. In the business world, leaders are called upon to anticipate and address their continually changing environment for the benefit of their stakeholders. Those who do not heed the call to lead change as an ongoing process may jeopardize their business’s future.  

Every business operating model has a finite shelf life. Over time, as the operating environment changes, the business model loses effectiveness. What are the indicators that it’s time to refresh or redefine your business operating model today? Three change categories indicate this is the time to assess an operating model refresh: Changing demand, changing supply and changing customer engagement approaches. Leaders can ask several questions to identify areas of emerging change, informing the need for an operating model refresh.

Changing demand

  • What changes do you anticipate in your customer base over the next two to three years (demographics, geographic, economics)?  
  • What changes do you anticipate in customer expectations of your offering over the next two to three years (product, technology, ease of use, features, quality, pricing)? 
  • What have you tracked/observed with changes in customer satisfaction/engagement over the past two to three years?
  • How has your customer attrition rate changed over the past two to three years? 
  • How has your flow of new customers changed over the past two to three years? 
  • What trends have you observed in the number of repeat customers over the past two to three years? 
  • What are the themes and volume associated with customer complaints over the past two to three years (including unfavorable online and social media traffic)?

Changing supply

  • What changes do you anticipate in employee expectations of your business over the next two to three years (evolution of the company’s value proposition to employees, career and professional development, benefits, compensation)?
  • How do you anticipate the talent pool (early, mid-career, seasoned talent) and competition for talent changing over the next two to three years?  
  • What have you tracked/observed with trend changes in employee engagement over the past two to three years?
  • What has been your level of employee attrition (regrettable, encouraging) over the past two to three years? How does this level align with your expectations?
  • What are the themes and volume associated with employee complaints over the past two to three years? 
  • What changes do you anticipate in suppliers over the next two to three years (supply chain changes, new suppliers, product offering, industry consolidation, technology, costs, pricing)?
  • What types of nonsystemic (e.g., unrelated to COVID-19) supplier service/delivery issues have you experienced over the past two to three years? What is the cause?  

Changing customer engagement and competition approaches

  • What changes do you anticipate in how your company interfaces with customers (human interaction, physical sales/service locations, self-service, digital platforms)?
  • What changes do you anticipate in the availability of on-demand customer engagement offerings (accessing your products or services where, when and how the customer prefers)?
  • What changes do you anticipate in the competitive landscape (new entrants, consolidation, new products, new technology, pricing changes) over the next two to three years, and how will these impact your business?
  • What changes do you anticipate in how/how aggressively competitors pursue your customers over the next two to three years?
  • What changes do you anticipate in your operating economics over the next two to three years?

This partial list suggests how leaders can evaluate the need, and urgency, to refresh, refine or reengineer their business operating model. Knowing when to initiate change is essential in navigating change leadership.

 

Dave Coffaro is a strategic management consultant specializing in guiding businesses in navigating change. As principal of the Strategic Advisory Consulting Group, he works with services firms to accelerate growth and generate more favorable economics. His most recent book is “Leading from Zero: Seven Essential Elements to Earning Relevance.”

Opinions expressed by SmartBrief contributors are their own.

____________________________________

Take advantage of SmartBrief’s FREE email newsletters on leadership and business transformation, among the company’s more than 250 industry-focused newsletters.