Expert Insights on Navigating Industry Challenges for Growth

I can't look at a picture like the one below without thinking about driving the Vail Pass in Colorado. On any given winter day...the sun can be bright immediately overhead, then you turn the corner and the snow starts. And, as soon as it starts, it could be over.... or you could be driving into increasingly challenging conditions. If one is prepared for what is coming, the journey is not so treacherous. The same is true for navigating growth through challenging and ever-changing business conditions. Check out this article AMK President Jane Sidebottom wrote with HVAC leader Brad Bolino a few years ago:

A winding mountain road symbolizing the journey through industry challenges

Growth Doesn't Happen by Accident, It Takes a Resilient Strategic Roadmap.

Long term successful companies are good at strategy - one that evolves as the market evolves. The late Jack Welch said that one of the traits he looked for in leaders was “the ability to see around corners”. If ever there was a time for business strategy to navigate the 90- degree corners, it is now. And success will be based on how fast you begin to plot the course, and how agile you are with your response to the unknown.

So, let us start with what we know:

1.     Business three year from now will be different than it was three years ago.

2.     What seems obvious today will look different in the near term.

3.     What you think you should do today is probably reactionary…and may be wrong in the long term.

4.     What you do today likely determines or at least impacts your future.

5.     And your investors expect you to have a solid view of multi-year performance

Where do you go from here?

1.     Assemble your leadership team. Only they can help develop the navigation plan.

2.     Pull your assumptions and data from your last planning session. What were your customers, the market and the money guys telling you then?

3.     Gather all data you can get your hands- on. Don' hesitate to ask the thought leaders and analysts in the industry

4.     Call your customers, ask them about their plans. Engage at a senior level in order to get the strategic direction and not just the tactical direction

a.     Will your source of revenue remain intact? Are there signs that they may become disrupted? Ask about new sourcing strategies, strategic alliances or acquisitions, anticipated leadership changes...but at a minimum, how is their management team being measured.

b.     Do your customer’s plans still align with your business?

c.     Has their perception of value changed?

5.     Evaluate your competitors.

a.     Are they thriving or just surviving and why? What is the short and long-term impact of tariffs and sourcing strategies?

b.     Are they changing how they do business? If so, what does that mean for you?

6.     Evaluate your operations.

a.     Is there trapped value that can be released? This evaluation may be one of the most critical as when business is good, operational excellence sometimes falls by the wayside.

7.     Is your competitive advantage still intact?

a.     How do you protect it?

b.     How do you expand it?

8.     Is it time to consider adjacencies?

a.     Do you know what markets might be available to you?

b.     What is your plan to expand?

We have worked with companies, through down period to expand into new markets, developed new product/service offerings, harnessed cost, and developed innovation. This is your time to build a wider moat (to quote Warren Buffet).

Next, assemble your team and consider bringing in a neutral third party to facilitate your planning. This facilitator will help you focus on what the data and information tell you and effectively balance that data with opinion and anecdotal information.

Listening to constituents and studying your markets provides the data for clear strategic decision making. Take advantage of business disruptions to think about the steps to implement. And note that it only looks like a disruption– the only thing that is impacted, unfortunately, is revenue. Your competitors are likely alive and looking for ways to survive at your expense.

Now is the time to develop a going forward strategy based on clear analysis and sober thinking

And remember what Sun Tzu wrote in the Art of War – “No battle plan survives contact with the enemy”.  Speed, agility, and flexibility are essential.

No company will escape the effects disruptions or downturns in the market. The outcome ultimately depends on your company leader’s ability to see the successful path around the corner with a strong strategic roadmap. While there are certainly uncertain conditions ahead, the outcome still largely depends on leadership developing and executing the right strategy. Even if your backlog looks strong, regular reviews of the strategy and execution will better prepare your company for disruptions. (note minor changes made to the original to reflect current conditions)