Evolution or Destitution: It’s your Choice.
Barring one off exceptional events, almost all business failures can be traced back to some form of “management failure”.
Start up businesses face a myriad of management issues that can lead to them failing, but for established businesses the problem is usually a failure to evolve.
A successful business constantly evolves to meet new customer demands, technology changes, product development, management practices, employee requirements and the like. Successful managers are always asking themselves “what can we do better?” They know that constant evolution can be managed without great disruption to the business. They also know that revolutionary change has to take the place of evolutionary change, if the business has fallen way behind and it wants to survive, and revolutionary change will involve much greater effort and disruption.
Evolution in start up businesses comes naturally, but for established businesses it is harder because they need to overcome the inertia of “If it ain’t broke, don’t fix it”. This means that for established businesses there is an inherent reluctance to change.
Insolvency practitioners regularly see long-term businesses that have failed to innovate and evolve. Often a feature of such businesses is that there has been no refreshing of top level management for many years. New or wider management prompts innovation.
If you or your client is in an established business we suggest that every month you list how many genuine evolutions and innovations has your business achieved this quarter? You may be surprised how few there are.