Recently, I was a guest on a podcast when the host posed the following question: How can business leaders know when to pivot?
I smiled, considering the underlying theme of our June blog posts: The guiding voice.
While at the outset he presented a good question, it begs an even deeper one:
Why should business leaders pivot?
If you have read my articles — or for those who received and read my first draft of Knowing before The Knowing Retreat — you know my affinity for asking ‘Why?’
Tracing the roots down to the core of Why strips away autopilot responses, automatic behaviors, and face-value reasons and gets to the heart of the matter. Typically, the initial answers in response to Why, are not the real reason at all.
So, let us first strip away the typical responses, what I refer to as the 3 C’s, that serves as the Why that typically guides business leaders to pivot and then address the proper Why.
The 3 Common C’s
1) Competition
It seems that the digital landscape is changing hourly.
This change is especially true with the rise of AI and Robotic Process Automation (RPA). Both have been changing the course of business and processes and systems for many years yet finally have garnered a microphone to propel swift change and simultaneously fear among many organizations.
We find ourselves reacting to the changes around us: To our competitors’ business decisions, driven by their latest advertisements or their change in fulfillment.
Consequently, the business strategy upon which you and your team agreed to at the outset of 2024, which was reasonable and guided by data, is now thrown to the wind as fear creeps in, and we are terrified of missing out.
Not knowing our Why, we give in to the fear that we will get left behind.
2) Customers
If we don’t give in to the first ‘C’, we are pulled into what we think is a more resonant guiding voice than our competitors – our customers.
After all, their patronage funds our business—losing them risks also losing the business. Isn’t that what fear tells us? Sacrificing their voice as the driver in our company means sacrificing our business itself.
They watch their competitors, they read articles about industry changes, and they are the ones hounded by their board or investors. And you are the closest scapegoat.
If you don’t know your Why, you will be tempted to ask the question, Is now the time to deviate from that carefully curated business plan you and your team agreed upon?
3) Colleagues
I am currently in a partnership where we are struggling with one particular partner who is reticent to receive the advice of the other two partners. This struggle makes for a one-sided and narrow ability to make decisions.
Needless to say, community and unity is vital.
In this, I cannot emphasize enough the benefits and wisdom found in masterminds or accountability groups.
Here, however, there is a cacophony of advice and luring voices competing to guide our decisions. Too easily, the pendulum swings in the other direction, where business leaders can pivot entirely following an incredible Mastermind boasting the latest tools and technologies, automated workflows, or advice on hiring overseas, among many other topics. (Ps. My favorite Masterminds are listed at the bottom.)
Without knowing our Why, we may question, Is now the proper occasion to shift directions?
What should we listen to?
The ‘little black book’ of your Why
Now that we’ve addressed the misdirection of the 3 Common C’s let’s explore the factors that should determine your pivot as a business leader.
I’m not saying that the external voices of the 3 Common C’s don’t render wisdom and opportunities for growth. However, the deepest Why, when it comes to a business pivot, must rest in the foundation and core of your organization.
The clarity of your Why drives business decisions internally and attracts your audience externally.
I addressed this very topic at Traffic & Conversion 2022 in San Diego:
“The consumer has changed.They are desperate for connection with each other and the vision of companies they seek to partner with or purchase from."
Harvard professor Gerald Zaltman stated that 95% of purchase decisions occur in our subconscious, where our emotions live. Therefore, emotion-driven marketing predicated on an organization’s Why is paramount to driving the connection consumers are looking for and thus securing your position in the market.
We saw this explicitly with TOMS Shoes, renowned for its “Buy-One-Give-One” purpose-driven marketing campaign, which has served as the heart of the company’s brand.
Your vision, mission, and values (typically found in a Brand Guide, but a Little Black Book sounds more fun) outline your Why as an organization. From this Why, bottom-line goals are established, business plans generated, and strategic direction is curated.
In doing this, you will avoid the pitfalls of the 3 Common C’s and establish yourself confidently as a business that truly connects and authentically relates to its customers in a way that they can remember and understand.
“Any organization can explain WHAT it does; some can explain HOW they do it, but very few can clearly articulate WHY.” Simon Sinek
Knowing when to pivot is not as critical as knowing Why to pivot, and the answer to this must hinge on the insightful information you have in your Little Black Book. Armed with this insight, you can be one of the few that can articulate your Why in a way that moves your customer and connects with them in a deep and meaningful way.
Masterminds I love:
Sims Distillery
Driven Mastermind
Wealth Building Code
