STOP TINKERING!

Hi Folks; as a former `Big Business' exponent, who now works as a business coach/consultant for SME and micro companies, I have observed a problem that exists across the broad business spectrum; and that is the wrong notion, that once a business model has settled down, and momentum reached, all it needs is a bit of `tinkering' every now and then, to keep it healthy and sustainable.

That simply doesn't work in today's dynamic and ever changing world;even the Kiwi `8-wire' mentality has it's limits.

We all know the case of how Blockbuster Movies in the US failed to see the disruption coming and was eventually wiped out. Netflix,the main disrupter, actually started life as a mail-order movie rental business with a monthly subscription for whatever movies you wanted (from a much bigger library than in-store) - and significantly cheaper distribution costs than Blockbuster.

Here is the chart of how Blockbuster were wiped out by Netflix over a 6 year period*:

*The point I am making through this example is that even `disruption' can take some time to manifest, and it doesn't usually come in the blink of an eye. This, despite our wrong perception of the term `disruption', coupled with Moore's Law, which appear to suggest it happens rapidly.

The rapid part does come, but right at the end.

Now, I would like to relate the above case study to a small family run business:

They took over a business several years ago, complete with clients, systems and a reasonable amount of `goodwill'. In the time since, they have simply gone with that original model, which worked well at that stage - with minimal fundamental changes, and have been quite happy with it's status as a cash cow over the years.

However, the industry and market they operate in has changed substantially since they took over, with many new players entering the arena, and their cash cow is now looking sick and vulnerable, as it has been milked to near-death, without any corresponding re-investment or capacity building. Furthermore, there has been a complete lack of awareness of the business's interaction with, and relevance to, an ever-changing environment.

Why change something that works?

Although lot of `tinkering' has gone on to keep the business going while the owners have been enjoying the (dwindling) cash output from this machine, they didn't really care to understand the relation their business had to the changing landscape.

Their apparent apathy and resistance to change is unfortunately a normal response for most small business owners; in this particular case, it appeared that the condition was exacerbated by their initial `ease' of making money through a tried and tested business, which changed to an unpredictable and unstable business.

It is easier to fix a problem when it is small.

It is like the frog in the slowly boiling water, who doesn't feel the incremental warmth creeping into the environment until it is too late; or it can also be like the rather spectacular sight of Nero Fiddling while Rome burnt.

In a good twist to the story, a few signs of the impending fire eventually caught the busines owners attention, and seeing the writing on the wall, they commissioned a full review, revamp and overhaul of their business operations to a) steady the ship and b) create a sustainable and dynamic business model, that is relevant and in tune with the ever changing business landscape.

As Alfred North Whitehead said many decades ago:

So in the story, all was well in the end. But it could have gone pear-shaped (as in the case of Netflix), had they continued with their special blend of apathy and tinkering. That is unfortunately the toxic alchemy that exists in many micro businesses.

So friends, whether it is your own lives or a business that you work in or own, always remember to take time out regularly, to review your overall direction and your position within the endless and open expanse of quantum opportunities; this will help you make the necessary changes that will help you grow and achieve your aspirations.

Just tinkering isn't always enough.