I have been very lucky in that I had great associates and mentors to help me on my entrepreneurial journey. One of the best groups with which I was associated was the Association of Venture Founders (AVF), the brainchild of Arthur Lipper, III- a mentor and friend who taught me much.
The AVF met at various places around the US, sometimes in hotels, other times at members location. The goal of the AVF was to create a network (this was 30 years ago!) of like-minded entrepreneurs who would help each other on their journeys to “bigger and better” things.
At one such meeting, I had the opportunity to meet with, learn from, and spend time with Yitzchak Adizes, a remarkable individual. He discussed his concept of business formation- and its demise. He also stressed that this path did not always follow a straight line, in that cycles could repeat and there could be “backwards” progress. His ten cycles were roughly those denoted in the chart below.
If we are lucky, before our enterprises fall off and die, we can recreate the fervor of our company. So, instead of us following the standard growth and death curve that exists in biology, we can work our way into an S curve of sorts.
The trick is to not wait until we reach the recrimination stage. We need to redefine our mission and vision so that our enterprise can thrive in the future- which means that we cannot accept the “status quo”. We need to discern what is better about the new when compared to the old. We need to strip out the complexity we see everywhere and reduce our concept to the simpler model, one that can be clearly explained and shared among our constituents. But, most importantly, we must be self-aware; we must recognize who we are and where we are, as well as where we need to be directing our efforts.
Too many of us examine our business models and markets and fail to see that they are changing. Moreover, it is nigh impossible to discern that tipping point or major disruptor that is about to become a tsunami and wipe out our ship of state.
What do we do? Well we can use the tried and true technique for action developed by Colonel John Boyd for Air Force operations– OODA. This means we Observe our environment, Orient ourselves towards our competitors and clients, Decide what we are going to do- RIGHT NOW!, and Act. And, then repeat the process.
Devise thought experiments considering our “widget” or service, one life cycle prior to where we are now. That could be a decade back, unless we are in the high tech industry, where the cycles tend to be four years, at best. Try to imagine what your innovation would have meant then to the marketplace. And, then proceed from there. Try to envision you as that potential disruptor.
The choice is ours. Do we want to follow the standard Adizes curve? Or, modify it to be an S curve- over and over again?
I like the way you explained the different life cycles of a business. The OODA (Observe, Orient, Decide, Action) model looks like a great way to run a business.
Janette Fuller recently posted..Book Review: Santa’s Tree Topper by Shannon Glen
You’re right, Janette! OODA has a great deal of merit, for a lot of things we do! And, that’s why I wanted to make sure I gave credit to the progenitor of the concept.
Thanks for visiting AND commenting.
Change is never easy but it can make the difference between succeeding in business and falling behind. When we make a few changes, see how they work and then make more changes, we can grow our business and see our lives differently. My business is constantly evolving and when I look back at what I’ve changed, I’m more inspired to keep moving forward.
lisa kanarek recently posted..10 Ways to Improve Your Home Office With Feng Shui
Great advise, Lisa!!! And, you are right to keep monitoring progress, to insure you stay on target- the target YOU choose.
Thanks for the comment!
One thing I firmly believe is that change happens. And no business owner always makes the right decisions all the time which is why small tweaks, mentors, advisers and mastermind groups are essential to keep evolving. I wonder what Barnes and Nobles and Kodak would have done if they had reinvented earlier and differently
Roberta Budvietas recently posted..Community Is Key
I think Kodak will be a primary management class lesson for at least decade. The change that was coming to its market did not happen overnight- but by the time it reacted, it had little more than “overnight” to change, which was never to be.
Barnes and Nobel was a remainder house forever. It changed into brick and mortar shops around the US as a reaction to Borders. It acquired some of the others brick and mortar shops. But, it never believed that Amazon would become profitable. And, then….
Interesting labeling of stages. I see “stability” as “complacency” to be followed with “needs kick in the butt”…. Just speaking from personal experience 🙂
Carolina HeartStrings recently posted..WORDLESS WEDNESDAY
I’m not so sure that complacency works, Alessa, unless we are talking about a specific case. Many a client has reached that level and tries to grow/expand its management, so it can reach new heights. If it fails to do so, it starts to decline.
I’ve heard about this! A friend recently attended a conference where they were teaching how to identify when the business has plateaued or reached its peak in order to prepare for selling. How motivating to think that it’s possible to make that curve an “S” instead! =)
Samantha Bangayan recently posted..A Simple Life: The Fine Line Between Simplicity and Laziness
That’s our job, Samantha. To recognize where we are in the process- and keep our company progressing.
Glad to hear there are others spreading the word- and your comment helps do so,as well.