You can’t be “agile” if you’re stuck on the change curve

You might think “agile” is a bit overused, but I think it’s still a helpful way to describe the ability of a business to respond quickly and efficiently to change.

Change can be external (like a competitor bringing new tech to market, which makes your product instantly outdated) or internal (an investor pulling their funding or your best developer quitting before you’ve filled their role).

Change can disrupt a local level (like the rolling out of #levellingupfund investment) or cause more widespread disruption across global markets (as COVID did).

Change is inevitable whenever and wherever it happens, and your agility to shift your strategy in the direction of change (rather than battling stubbornly against it) will determine how resilient and, ultimately, how successful your business will be.

The Change Curve is a model that describes the emotional journey we experience when faced with significant disruptions in our lives. Also known as The 5 Stages of Grief, the model was first created by psychiatrist Elisabeth Kubler-Ross to explain the emotional responses of terminally ill patients. The principles have been applied to various scenarios, including managing change in business.

The 5 stages are:

1. Shock and denial - struggling to accept the new reality
2. Anger and resistance - frustrated and hostile towards whoever is driving the change
3. Exploration and acceptance - ready to explore potential solutions
4. Experimentation and learning - testing new approaches, adapting behaviours and attitudes
5. Integration and commitment - getting comfortable with the new way of doing things

Beware sunk cost bias

You can’t claim to be agile if you’re clinging to a strategy that no longer works in your new normal. But it’s tough for entrepreneurs, who’ve invested blood, sweat and tears (and either your own or someone else's money) in a vision, to shift away from what you set out to do.?

I know how it feels as a founder

When disruption occurs, we need to be able to detach ourselves emotionally from the situation and make an objective decision about how to move the business forwards.?

If your business is currently dealing with a disruptive event or you feel stuck at stage 1 or 2 of the curve, Coaching can help you move through the exploration stage and start experimenting.

Examples of agile experimentation

A few months ago, @Amy Knight dug into the story of Netflix for this resource on gosmarta.com.

They began by posting DVDs to people’s homes in the ‘90s, and it took numerous iterations for @Netflix to get to a subscription-based business model that worked, giving customers unlimited access with no late fees.

The founders of @Airbnb started by renting out air mattresses (hence the company name!) in their apartment during a conference. Seeing the potential to scale their idea, they built a platform, sought user feedback and made improvements based on their insights, gradually evolving into the global accommodation giant we know today.

@Spotify is another well-known brand that embraced agile experimentation from its early stages, experimenting with different features, user interfaces, and pricing models while closely monitoring user feedback and data analytics. This agile approach enabled them to create personalised recommendations and become industry leaders.

@Uber disrupted the traditional taxi industry with a simple app to request rides in San Francisco. As they scaled globally, agile experimentation allowed them to adapt to local markets and meet customer needs in different places.

Go with the flow

To get your business ready for change, consider the following:

• Training to help your team build skills and confidence to navigate new situations?
• Expert consultants to help you guide your team through disruption
• Continually assess the effectiveness of the changes you make and look for areas for improvement. Adapt your approach based on quantitative data and qualitative feedback.

For help with scenario planning, get in touch.