Understand the New Rules to Stay Competitive

growth

The Rules Have Changed

In a world of constant change and disruption, it’s important to stay agile and courageous. Whether you’re leading a small team or a large company, you will need to be bold and to act without fear.

That’s easier said than done.

Amanda Setili is president of strategy consulting firm Setili & Associates, a firm boasting clients ranging from Coca-Cola to Walmart. Her new book, Fearless Growth: The New Rules to Stay Competitive, Foster Innovation, and Dominate Your Marketsis packed with examples and tools to stay ahead of the crowd.

I recently spoke with Amanda about her work and her new book.

 

What is driving the need for fearless growth?

We all know growth is essential to a business’s health, but no matter what industry you’re in, you probably feel stress brought on by new technologies, changing customer behaviors and preferences, and new competitors that threaten your business’s ability to grow. Here are a few examples:

  • The food industry is investing to keep up with sometimes capricious trends in public perception regarding low-fat, low-carbohydrate, non-GMO, gluten-free, organic, alternative sweeteners and grains, and other choices.
  • The consumer products industry must continuously seek to find new and better ways to interact with their customers digitally. They must respond to changing consumer buying behaviors and even to consumers’ concerns about political, social, and environmental issues.
  • The entertainment industry is being upended, with companies that formerly were just conduits for content—like Netflix, Amazon, Google (via its YouTube subsidiary), and AT&T (via the Time Warner merger)—now creating their own original series.
  • The auto industry is changing gears to adapt to the way ride-sharing services, such as Lyft and Uber, are reducing people’s desire to own a car.
  • The banking industry is scrambling to adjust to new modes of consumer-to-consumer payment (such as Venmo) and new forms of lending and credit assessment.
  • The transportation and logistics industry is responding to trends in globalization, automation, and the rise of e-commerce giants like Amazon and Alibaba.
  • Industrial products companies are struggling with decisions about how best to deploy sensors and artificial intelligence to improve their products’ performance and reduce cost.
  • The energy industry is coping with low oil prices, new government regulations, and emotional consumer sentiment on both sides of the fracking, renewable energy, and coal debates.

If your business hasn’t felt the effect of massive market changes yet, it’s likely that you will soon. And if you wait until disruption occurs, it will be too late to respond effectively.

You must grow your business, but most growth initiatives entail risk of one kind or another. I often hear company leaders saying things like, “Our core business is at risk of disruption. We need to branch out into new businesses to grow, but we don’t have all the capabilities we need—they’re not in our DNA,” or, “We’re in unfamiliar terrain and aren’t sure that customer demand will materialize. There are lots of unknowns.”

To pursue growth, leaders and employees must learn to do things they have never done before, and they must grapple with new threats. All of this adds up to the fact that trying to grow a business in today’s turbulent markets is pretty scary—it’s perfectly reasonable and rational for company leaders to be worried. I developed the new rules of fearless growth to help leaders create organizations that have the courage, speed, and agility to succeed, no matter what the future brings.

 

“To pursue growth, leaders must grapple with new threats.” -Amanda Setili

 

Establish Forward Momentum

What can companies do to grow fearlessly, even when their business environment is changing fast?

When leaders encounter risks in their business environment, the natural human response is to hunker down, tighten the controls, and defend the existing business. What is needed, however, is not tightening controls, but the opposite. You need a fearless approach to learning and adapting to market change, and that means giving up a degree of control—to employees, business partners, and customers—in order to gain control. It’s like learning to ride a bike. At first, the bike seems tipsy and unstable, but once you start going, the movement itself creates stability.

What A Caterpillar Can Teach You About Growing Your Business

Master Near Constant Change

 

Many people think that businesses should develop a strategy and stick to it at all costs.

But Sid Mohasseb, serial entrepreneur, investor, venture capitalist, and former the Head of Strategic Innovation for KPMG’s Strategy Practice teaches an entirely different approach: It’s the ability to adjust your strategy, almost constantly, that brings success. The environment is uncertain and changing, and changing with it is vital.

Sid teaches that we must push for more and evolve from one approach to another.

I recently had the opportunity to talk with him about his new book, The Caterpillar’s Edge: Evolve, Evolve Again, and Thrive in Business.

 

Prepare for Constant Flux

Why a caterpillar?

The caterpillar evolves many times over before it becomes a butterfly. It changes form until it turns into a completely different species. The caterpillar teaches us the wisdom of constant and incremental evolution and offers the promise of flying.  To compete, to advance and to win, in our businesses and in our personal lives, we must evolve constantly and purposefully, always.

 

“Things do not change. We change.” -Henry David Thoreau

 

How is the game changing? And how do leaders prepare for the constant flux?

Innovation is constantly approaching from every corner of the world. The speed of change fueled by unprecedented technological advancements and constantly increasing customer expectations are challenging companies to “stay relevant” – competitive advantages are temporary. The game has changed from, “How do I gain an advantage and defend it?” to “How do I change to stay relevant?”

To win in a state of constant flux, leaders must shift their minds and change their actions. First, by realizing their addictions (old assumptions, orthodoxies, biases, etc.). Next, by aligning with uncertainty – no plans can be permanent and no decisions are certain. Leaders must learn to live with probability and a portfolio of related plans – always ready to take the path that offers the most likelihood of success. They should also appreciate the reality of their capabilities and aim to build the future in increments; success cycles must be shorter and capabilities (people & systems) have to be created accordingly. Last, leaders must constantly look for the next advantage and aspire for more “Aha’s.” They should look for and discover the next challenge or opportunity, always; innovate, always (create new value), and evolve, always.

 

“To win in a state of constant flux, leaders must shift their minds and actions.” -Sid Mohasseb

 

How to Embrace Change

Why do we so often refuse to deal with change and uncertainty?caterpillar-cover

The refusal is more natural than intentional. We refuse to deal with change because of our fears of unknown (what is on the other side of change) and comfort with the status quo (comfortable routines we are used to and have served us well in the past). Most people embrace change when they i) realize the severity of the problem they face and ii) gain trust that what they can change to is a better state. We often refuse to change because we believe that the status quo does not present a major danger and/or we don’t trust the alternative paths offered by our leaders.

At business school and later at work, we are trained to look for certainty to plan to and execute against – assuming reduced risk. In our personal lives, we are comfortable living with probability and operating in uncertainly – there is a 40% chance of rain, and we decide, based on our risk tolerance, to take an umbrella or not. In our professional lives, we are expected to be certain and execute with confidence in outcomes. People, on a personal level, can innately adjust to uncertainty. However, they are reluctant operating with uncertainty at work because corporations expect and reward the illusion of certainty.

 

“The only thing that is constant is change.” -Heraclitus

 

3 Categories for Leaders to Plan in a World of Change

16 Things High-Performing Organizations Do Differently

What Great Teams Do Differently

Don Yaeger is an expert on what it takes to cultivate a champion mindset. He was associate editor of Sports Illustrated for over a decade; he has made guest appearances on every show from Oprah to Good Morning America, and he’s also authored more than two dozen books. Now a public speaker, he shares stories from the greatest winners of our generation.

So when his new book, Great Teams: 16 Things High Performing Organizations Do Differently, arrived on my desk, I couldn’t wait to read it.

I wasn’t disappointed. Don’s insight on high-performance is evident on every single page. I recently had the opportunity to talk with him about his research into what makes a team great.

 

“Great teams are connected to a greater purpose.” -Don Yaeger

 

Use Your Why to Motivate

Don, you’ve seen the inside of great teams in the sports and the business worlds. Your new book focuses on 16 characteristics of great teams. Let’s talk about a few of them.

 Your first point is that great teams understand their why. Purpose motivates both individuals and teams. How does the personal “why” interact with the team “why”? Do they ever conflict?

In the business world, a “why” is often misunderstood as a company mission statement or code of ethics—which couldn’t be further from the truth. Author and motivational speaker Simon Sinek has described a company’s corporate “why” as “always disconnected from the product, service, or the act you’re performing.” If an organization desires to become a Great Team in the business world, then it must understand how to utilize the “why” properly in order to galvanize support from its professional ranks. “When an organization lays out its cause, how it does so matters,” explained Sinek. “It’s not an argument to be made, but a context to be provided. An organization’s ‘why’ literally has to come first—before anything else.”

 

“People don’t buy what you do, they buy why you do it.” -Simon Sinek

 

 

Companies that understand the purpose and philosophy behind the “why” are usually astute, high-performing organizations that tap directly into the pulse of those they benefit the most. When utilized correctly, this understanding can create a powerful sense of duty and purpose for business teams because the employees know exactly whom they are working for and to what end.

 

“Great teams build a deep bench at all levels of the organization.” -Don Yaeger

 

Let Culture Shape Recruiting

You talk about letting culture shape recruiting. In a large company, how do you make this a reality so that every single hiring manager is thinking about culture and not just reviewing a resume?

Purpose and leadership are essential to building a team culture. Once an organization determines its “why” and aligns its leadership style with the needs of its members, it is on the right path to becoming a Great Team. But culture building doesn’t stop there. A team must also recruit the right talent. If done well, recruiting will result in a highly competitive team that is consistently motivated to seek and claim success.

Great Teams recruit players who fit—who will thrive within the established team culture and add value to it. The talent of the employee or teammate is important, but fit trumps all. These organizations understand that Great Team culture establishes an environment conducive to success, but that success ultimately depends on the right kind of personnel.

In today’s marketplace, it is very easy to be wowed by decorated resumes. When the “ideal” candidate—the one with the outstanding CV—arrives, many leaders incorrectly believe that including that person will automatically better the team. A Great Team, however, understands that fit is more important than credentials. Someone who might be perfect for one environment—or might have been great while working for a competitor—will not be a guaranteed fit for another. That’s something hiring managers should keep in mind as they build their teams.

 

“Great teams realize that fit is more important than credentials.” -Don Yaeger

 

Successful Huddles Are Crucial

What makes a successful huddle? 

Successful huddles are all about open and consistent communication. Under head coach Bill Walsh, the San Francisco 49ers placed such importance on the art of the meeting that he had specific rules and procedures regarding how each one should run. Walsh analyzed and even recorded meetings to spot potential lulls and weaknesses in their process. He wanted to make sure his assistant coaches—who would sometimes change from year to year—were teaching his team in a consistent fashion.

Quarterback Joe Montana, who came on board right after Walsh did, shared Walsh’s high opinion of meetings. This legendary team leader—who won four Super Bowl championships and is tied for the most titles among all quarterbacks—was known in and around the NFL as “Joe Cool.” He had an uncanny knack for seeing all aspects of the game from his position on the field and was seemingly unflappable in the most pressurized situations. And there was a reason for Montana’s demeanor: like Walsh, he believed in a very diligent, orderly meeting process as a means of keeping players engaged. For Montana, the huddle was a sacred place and the ultimate comfort zone. There were rules to be followed when Montana was giving out information for the next play. If those rules weren’t adhered to, Montana told his teammates to take the issue somewhere else. The huddle was a place where everyone needed to be engaged and headed in the same direction.

Great Teams in businesses can take a page from Walsh’s and Montana’s playbook and conduct orderly, disciplined meetings. Such order makes a bigger difference than many leaders want to admit. A successful meeting revolves around clear communication. It can be pivotal to achieving greatness because it explains precise strategy and opens the door to new ideas. An efficient meeting allows an organization to remain one step ahead of the competition and forces it to remain consistent with any existing strategies. But these ideas must be streamlined by a process and guided by a leader who can filter out the good ideas from the bad.

 

16 Things High-Performing Organizations Do Differently

  1. Great teams understand their why.
  2. Great teams have and develop great leaders.
  3. Great teams allow culture to shape recruiting.
  4. Great teams create and maintain depth.
  5. Great teams have a road map.
  6. Great teams promote camaraderie and a sense of collective direction.
  7. Great teams manage dysfunction, friction, and strong personalities.
  8. Great teams build a mentoring culture.
  9. Great teams adjust quickly to leadership transitions.
  10. Great teams adapt and embrace change.
  11. Great teams run successful huddles.
  12. Great teams improve through scouting.
  13. Great teams see value others miss.
  14. Great teams win in critical situations.
  15. Great teams speak a different language.
  16. Great teams avoid the pitfalls of success.

 

Would you share an example of where one team missed “value” and another team spotted it and capitalized on it?