Is Pivoting a Strategic Masterstroke or a Sign of Weakness in HealthTech?
Hi,?Kevin McDonnell ?here. Over the years, I've seen firsthand the changes in Healthcare systems and the positive and negative impact this has had on HealthTech businesses. Today, I want to talk about 'pivoting' because I come across many HealthTech leadership teams who struggle to pivot and change even when all the evidence suggests they should. Don't forget to?follow me ?or?our page ?for more insights every day.
Healthcare is no longer what it was a decade ago. Technological leaps, coupled with the devastating COVID-19 pandemic, have reshaped it into a wholly new beast. The need for contactless care, personalised treatments, digitised health records, and AI-driven diagnoses has become more pronounced than ever.
Yet, some HealthTech companies, even with their cutting-edge technology and gigantic funding, struggle to thrive. The problem lies not in their capabilities or resources but in their inability to sense the shifting sands beneath their feet. They're not listening to the market's heartbeat or decoding signals suggesting a pivot may be necessary for survival.
The 'stick-to-it' strategy has always been favoured in conventional business wisdom. It advises you to keep going. People view deviation from your original plan as a sign of weakness. However, clinging to outmoded tactics and refusing to pivot can be a death sentence for your HealthTech venture in today's era of unprecedented disruption.
As leaders in HealthTech, we need to question the status quo and recognise the strategic importance of pivoting based on market signals.?
Unearthing the 'Why' of the Pivot
Not convinced about pivoting yet? Let's confront the elephant in the room. We've seen behemoths like IBM, once the very definition of innovation, grapple with their own inertia, while companies like Apple, which was once on the brink of bankruptcy, transformed into an industry leader because it dared to pivot.
A pivot doesn't mean abandoning your vision. It means reassessing how you want to achieve it in light of new information and opportunities. It's about aligning your business strategy with the rhythm of the market. And in HealthTech, where not just technological breakthroughs occur all the time but clinical evidence, patient pathways and funding all change, ignoring these signals can lead to obsolescence faster than you can say 'innovation.'
Deciphering Market Signals: The Art and Science
It takes both art and science to understand market signals. It involves being aware of, among other things, competitor movements, consumer behaviour, regulatory changes, and technological advancements. Additionally, it involves having the intuition to decipher these signals and take tactical actions.
This discernment is a skill that can be learned rather than an innate quality. We must foster a culture of ongoing learning within our organisations to hone this skill. Regularly focusing on competitive intelligence, market research, and customer feedback analysis can reveal important trends and warning signs.
But how do we decipher which signals necessitate a pivot? A steep drop in sales, a sudden surge in customer complaints, a new competitor stealing your market share, or a regulatory shift that makes your product obsolete are glaring red flags. But often, the signals are more subtle - changes in consumer behaviour, emerging technologies that could disrupt your business, and shifts in healthcare policy that could open up new markets. These whispers can echo into significant transformations if we listen closely.
Courage to Pivot: From Signal to Action
While listening to market signals is vital, having the courage to act on them is equally important. It can be difficult to decide to change course. It carries a lot of risk and uncertainty. But frequently, not pivoting is riskier.
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It's crucial to foster an adaptable culture within your company. Help your team accept change rather than resist it. The ability to change course should be viewed as a strength rather than a weakness.
Look at businesses like Twitter, Slack, and PayPal; each began with a completely different business model but quickly realised that their initial strategies weren't viable or scalable.
A pivot is a bet on the future, acknowledging that the current path might not lead to the desired destination. Accepting that our initial plans might need recalibration requires courage, conviction, and humility.
HealthTech leaders must recognise that listening to market signals and pivoting isn't just about survival. It's about thriving in a world that's changing faster than we can keep up with. We need to celebrate and encourage strategic adaptability rather than stigmatise it.
Let's embrace this 'listen, learn, and pivot' mindset and make it the cornerstone of our business strategy. Let's not only adapt to change but be the change-makers. After all, the healthcare landscape of tomorrow will be shaped by our decisions today.
Remember, the signal you ignore today could be the pivot that saves your company tomorrow. So, listen closely because the whispers of change are everywhere. And as HealthTech leaders, we can't afford to keep our ears closed.
Pivot, or perish - the choice is ours.
I hope you enjoyed reading this edition? Please feel free to share your comments below, and if you know someone who would like it, why not share it with them??Don't forget to?follow Kevin McDonnell ?or?our page ?for more insights every day.
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Richard with 40 years in technology, bridges tactical operations and strategy. Leading pioneer in automation, TPM, and outsourcing, he emphasizes ethical digital transformation, integrating digital and human workers.
1 年Pivoting is a complete waste of time as an investment as all one can do is pivot. What’s needed is to be in a permanent state of reinvention and that requires a foundation.