“It’s going to be brutal. When I said a while back that the 1980s were going to be a white-knuckle decade and the 1990s would be even tougher, I may have understated how hard it’s going to get”
Impediments to Success
UK businesses are facing numerous impediments to success, a recent survey found:
38% reported sales and marketing as a major hurdle to growth, not understanding customer needs and failing to meet expectations hindered an ability to compete beyond only price.
53% reported strategy and management, notably a suboptimal decision making ability when faced with uncertainty through limited environment scanning, opportunity and threat identification. Leading to inflexible operational and strategic planning.
39% reported skills, staff, people management and culture.
Two intensifying market conditions are contributing to these widely recognised impediments…
Quickening Growth Challenges
Sustainable growth amongst small and medium sized businesses is reducing and the rate is accelerating. The number of SMEs experiencing growth for 4 consecutive years has reduced from 10% in 1996 to 2% in 2016.
Market conditions are changing, to the victors go the lions share – the long tail is becoming the norm. 10% of publicly listed companies generate 80% of worldwide profits. Companies with annual revenues exceeding $10billion accounted for 55% of global profits in 1990, by 2013 they accounted for 70%.
Hypercompetition is here, new markets are born more frequently yet through rapid knowledge creation and shortening replication cycles their lifespans are reducing.
Even large companies face increasing pressure. S&P 500 companies had an average age of 67 years in 1920, this was reduced to 15 years in 2012 and expected to be only 10 years old in 2020.
To continually adapt to these conditions it is necessary for organisations to build a culture and operating framework that are not in perpetual conflict and that allow for continual adaptation. Traditional reporting lines, rituals, responsibilities need to be re-evaluated and viewed as temporal to suit the situation today, but with flexibility to morph to be fit for tomorrow’s purpose. Technologies and methods of working may need to be re-evaluated and rationalised. Decision making hierarchies will need to be distributed more widely, closer to where the impact resides.
At Moozoo we work with you to address all of the above, we are agnostic to process, tools and technology. What this means to you is that we partner to build an organisational canvas that makes sense to your unique business and not just introduce changes because frameworks dictate it essential.