This is the seventh installment of a multi-part series to talk about what a Go-To does differently from the me-too pack:
- Part 1 talked about how a Go-To focuses.
- Part 2 talked about the importance of establishing a beachhead.
- Part 3 talked about how a Go-To obsesses on behalf of its market.
- Part 4 talked about how a Go-To takes ownership for the market problem.
- Part 5 talked about how a Go-To evangelizes and builds a following
- Part 6 talked about how a Go-To promises results, not just products or services
A Go-To Constantly Adjusts and Adapts
The world is continuously changing, and a Go-To keeps an eye on the horizon to constantly adapt to market conditions, evolving customer needs, and other factors that impact a company, like the economy, politics, regulatory policy, technology and so on. It even reinvents itself, when necessary.
A Go-To maintains humility and a healthy paranoia. I remember being in meetings with the senior leadership at Accenture when it was flying high with record growth and profits, and you’d have thought from the conversation that the company was on the verge of going out of business. The executives in the room understood that Accenture’s fortunes, like those of any company, could turn on a dime. The team took the same earnest attitude toward its strategic planning activity as a struggling startup does.
A Go-To also understands that, regardless of how unique its current offerings are, it will face competition. The market will invariably begin to fill up with me-toos going for a slice of that pie, so the Go-To must watch its back and work to stay ahead of the pack.
Technology companies, in particular, can’t stand still for three seconds before a competitor pops up or market conditions change. Oracle started as the only relational database company, but of course competitors came along, followed by new technologies. Though Oracle, by far, still maintains a solid leadership position in that space with nearly 50% market share, it is no longer the same company. It has built on its strengths to broaden into many technology and software solution areas, including numerous specialty niches, such as inventory management for communications service providers.
As of this writing, Apple, Google and Microsoft are the world’s three most valuable brands according to Forbes, but you’d never know it from the healthy paranoia pulsing throughout the headquarters of all three. None look the same as they did in the early days, and they all know that their offerings could become obsolete at any moment. They are always working intently on their next innovations.
A Go-To understands this: Companies that don’t change or don’t change fast enough often perish. As Andy Grove put it in his book, Only the Paranoid Survive:
…the person who is the star of a previous era is often the last one to adapt to change, the last one to yield to logic of a strategic inflection point and tends to fall harder than most.”
In recent years, some stalwarts within their markets, like IBM, have suffered for not embracing the trend toward cloud computing quickly enough. Over the next decade, it will be companies that don’t embrace the Internet of Things trend.
To really bring this point home, consider the S&P 500 Index. According to an Innosight 2012 study summarized in the briefing, “Creative Destruction Whips Through Corporate America,” an S&P company is replaced every other week; and whereas companies in 1958 stayed on the index an average of 61 years, today the average tenure is just 18 years. In the decade leading up to the study, over half of the companies had been replaced.
What This Means for You
Whether you are part of a large company or a startup, be sure you are constantly monitoring market changes and trends on the horizon and then analyzing how they might impact you. Look at what you need to do to adapt. The “Creative Destruction” paper I referenced above offers some pointed advice applicable to any company and talks about how P&G is doing it successfully, and I’ll be sharing additional tips in forthcoming posts.
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