By Eric Woodruff, CPA
Partner, Director of Audit & Assurance Services
Email Eric
If your company’s doing just fine in the unpredictable business world, it’s easy to surrender to the idea that “if it ain’t broke, don’t fix it.” But if you want to grow, you have to try new things.
Take Netflix, for example. It found plenty of success in delivering DVDs through the mail. But after reinventing itself as a content streaming platform and original content creator, it’s now an entertainment giant. Half of Netflix’s streaming library currently consists of original shows and movies it produced, and it has one of the most visited websites in the world. But when Netflix tried to join forces with its main competitor, Blockbuster, and shift their focus toward online efforts, former Blockbuster CEO John Antioco said, “The dot-com hysteria is completely overblown.” Boy, did that statement come back to haunt him!
The aforementioned story is a case of missed opportunities due to a lack of long-term vision. It’s also a prime example of why companies need a Chief Innovation Officer (CIO) or at least a team that has a creative, entrepreneurial spirit.
To avoid missing out on chances to evolve like Blockbuster’s CEO did, you should create a culture of constant improvement. Perhaps you should dedicate monthly meetings to discussing areas in which you can implement changes that will likely make a positive difference. First, don’t be afraid to identify weaknesses or shortcomings in your processes and procedures. Putting them under the microscope will shed light on what’s actually working versus what has simply and arbitrarily become protocol. Is it the best practice possible?
Next, you might want to appoint a CIO to be in charge of developing ideas and long-term strategies for implementing them. This person could also help you identify these three important aspects of your business: what you should stop, what you should start and what you should continue.
Look at what happened when Amazon stopped solely selling books and started shipping CDs, DVDs, video games, groceries and more. Think about how movie theaters are getting rid of their stiff chairs and offering luxurious recliners — as well as membership programs. Change proved to be successful in these cases.
In your time of reinvention, you should also turn to your customers. When was the last time you sat down with them and asked what they honestly think of your products and services? If they find them merely adequate, statistics show that you risk losing those customers to a competitor. Consider feedback from vendors as well. Outsider perspectives are crucial to helping you revitalize your business.
You shouldn’t be afraid of change. Embrace it! You should fear keeping with the status quo. So get back to the drawing board and start throwing bold, brave ideas at the wall. You’ll be surprised by what sticks.
If we can assist you further with achieving success in your business, please call us at (317) 608-6699 or email Eric.