While stuck on the 215 today, a thought occurred to me: being in business many times feels like sitting in traffic.
I’m not the only one stuck this morning. In addition to 2,000 of my fellow commuters sitting next to me, I know that this scene is playing out on legions of numbered freeways and highways across the world.
I wonder who among us will have the best plan to move through this traffic. I wonder who will stay the course, and who will be the innovator. I think about my poor timing — if only I had planned better, I might not be stuck in this traffic, and I wonder what outside influence has caused this traffic jam. The analogy of business and traffic was irresistible.
The innovation adoption curve. Innovators are the people who have great ideas and are the first to get those ideas to market. Studies have shown us that the innovators may have to endure the most difficult challenges. In traffic, this plays out in getting others to let one change lanes to move to the place where one can get off the freeway or change course. Studies also show that the innovators will be rewarded for their bravery — they may be the first to find the right surface street to avoid the logjam. Early adopters are those who follow the innovators. They see that the innovators might be on to something and try the same. They are also rewarded for their moves. The next group of people now tries to move to exit the freeway. By this time, this early majority finds the traffic is still bad and they are now part of what is becoming a mainstream exodus. Those in the early majority may think there is another way around the traffic, but by this time have committed to follow the pack and lack the courage or foresight to innovate or find another solution. The last two groups, the late majority and laggards, find that the new path, while once innovative, is now so mainstream it fails to yield any rewards.
I have seen this situation play out many times in my career. I believe that I have played a role in every group, from innovator to laggard. The most fruitful rewards are found by the innovators and early adopters. Think Starbucks, Blockbuster, Domino’s. Remember, however, that as new innovations become mainstream, true innovators are working on the next innovation while they continue to reap the rewards of their initial innovation.
Scenario planning. If we could develop scenario plans for our businesses as well as we do when stuck in traffic, our businesses would be more nimble and flexible. When sitting in traffic, we can instantaneously run through dozens of scenarios of alternate ways to get to where we are going. We know which routes will probably be the most crowded, which will be the fastest and which will be the least hassle.
There is a need to develop scenarios for our businesses. It is important to build institutional memory that will help us deal with slowdowns, crises and other issues that affect our businesses. Imagine how much it would help if people knew the business scenarios as well as their shortcuts to work.
Timing. Today I drove to work at 7:30 a.m. even though I knew that the timing was horrible and that I would be in the midst of a high volume of traffic. Traffic timing is everything. If I would have left home at 7 a.m., I probably would have saved an additional 30 minutes of drive time.
Timing is very important in business as well. Many successful businesses are in the right place at the right time. I don’t consider that luck or a coincidence. Successful businessmen study the timing of offers, product placement and marketing blitzes. They know what an early release will offer them as well as a late release of a product or service. They study the innovation adoption curve and spend their resources at the time when the yield is greatest or the offer most attractive.
I can speak from experience. I remember trying to persuade the marketplace to consider alternative energy solutions and green design strategies many years ago. Unfortunately, the timing was bad and most clients couldn’t justify the added expense. Today, however, there has been a green movement and the cost of these strategies has come down to an acceptable level for most clients. My firm has benefited this time around. It is nice when the timing works out.
Outside influences. Sitting in traffic, I often wonder “who caused this mess?” Was there an accident? In traffic, as in business, one needs to deal with the consequences of others’ actions. Perhaps you didn’t cause the traffic jam, yet it is you who must wait and navigate your way through it.
Business is no different. We must deal with issues and situations we did not cause. For instance, most businesses have no control over the economy, consumer confidence and the credit market — all issues facing us today. Business leaders need to work with these issues and chart the best course for their companies. It doesn’t help to blame others, just as it doesn’t help to blame the poor soul in the accident that caused the traffic jam. Patience and nimbleness are keys to dealing with outside influences on your business.
I’d like to hear from you:
• Do you spend time scenario planning potential outcomes for your business? Do you have any tips you could share?
• Do you study the timing of your offers in relation to the innovation adoption curve?
• Is your business prepared to deal with issues created by outside influences?
Until next time …
Craig
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