Anything which is “dying” is not to be
construed as totally dead. It only suggests the process of it. Even if it’s
struggling to breathe; it is, in fact, still alive, and may have a chance to
learn from previous follies and re-emerge on the horizon.
Douglas McIntyre (CEO - 24/7 Wall Street) presents
a list of 10 companies which won’t be around in 2016. To me, his opinions are
not etched in stone. Things and people carry a mystical tendency to surprise
the world. Incurable diseases go into remission, infirm make full recoveries
and dying businesses get resurrected. Much depends on who is at the helm though,
and what strategies are being deployed to incapacitate the diabolical
situation. Tell that to Mr. Lee Iacocca and he will inarguably concur. He
proved it to the world and authored books about it.
As seen in the video, Douglas McIntyre forecasted the death of 10 businesses in 2016 around three main concerns:
- Companies that have lost most of their customers.
- Companies that have a long history of declining sales figures and losses.
- Companies which have lost a significant amount of market share.
Notice the symbiosis and how well they are interconnected.
Douglas McIntyre says that each brand on this
list suffers from at least one of the problems mentioned above and generally
several. Be that as it may, in this quantum universe of infinite possibilities,
what chances businesses have to survive the downward spiral and regain flight
before hitting the ground? Let’s discuss each element dispassionately using the
best weapon called commonsense.
1. Companies
that have lost most of their customers: Well, we are all customers. Sentient beings of emotional intelligence
don’t just fly south to a different cornfield for no reason. The question is WHY are companies losing their customer
base? Even pricing is not always the factor. People look for value and associated
benefits. If a company is losing customers, it is forced to ask the following
questions:
How well do employees know the brand
(internally) and whether or not they are sold on that?
How good is internal communication which
results in good external customer service?
What are the USPs of the company – Unique
Selling Points – which separates you from the competition and imparts your
reason for being?
How well groomed is your sales staff in
connecting with customers emotionally?
And most importantly, how happy is your overall
employee base?
2. Companies
that have a long history of declining sales figures and losses: That statement immediately brings one thing
to mind. The company has a high tolerance of failures and they are lacking
focus and inter-departmental teamwork. It also signifies that either the sales
staff is bereft of the selling-spark which ignites clients, or there is a major
communication breakdown. If your fuel-tank is running low, commonsense dictates
to fuel-up before the car coughs and dies. Again, asking WHY will bring clarity to an ambiguous scenario. In the event of a
first setback, (a warning sign), what kind of actions were taken and changes
made? Ignorance comes with a price tag. Everything begins and ends with
employees. If internal issues are not being dispensed with, the external client
communication will dull the senses forcing customers to go elsewhere.
3. Companies
which have lost a significant amount of market share: This scenario is common in companies which
have grown into a much larger enterprise and have reached maturity. As they get
bigger, they also get vulnerable due to many seen and unseen forces. Businesses
I work with are not aware that a lifecycle
misalignment with their customers could
be the chief reason why they lose market share. Instead of evolving, executives
hold on to an outmoded organizational
structure long after it has served its purpose, because their power is derived from this structure. Horizontal
growth as well as vertical growth comes into play here. If you are multiplying
your locations/offices/retail outlets but not the supporting product lines,
variations of it with a solid supply chain, internal communication and customer
care, then brace yourself for a shock-wave. Merger with another struggling
entity won’t solve anything either. To thwart this scenario, keep into account:
- New Leadership Style
- Due Innovation
- Superb Co-ordination & Employee Motivation For A Unified Voice
- Collaboration and Co-Branding (Which Compliments Your Brand)
- Building Business Alliances
- Hiring and Grooming Quality Staff
- Promote from Within
Business
failures are directly related to managerial incompetence. Great leadership is
the maturity to treat employees respectfully. It works in ways that are
difficult to see and quantify. Lastly, don’t just sell the product; provide the
buying experience which is easy and fun.