Is Status Quo Killing Your Business?
What is the condition of your business? Are you basing your decisions on previous successes and glory?
The present market is like a flowing river that is always shifting the direction of flow and its speed. It requires continuous monitoring and adjusting to keep your company “in the forefront of your customers’ minds and you could be at danger of sitting on the shore looking at your customers and their revenue flow to your competitors” according to Dave “The Shef” Sheffield businessman, motivational and motivational speaker and coach.
Continue to push forward:
We all like recalling our past “glories and achievements” and the way we overcame the obstacles that were against us. Many people think about their past achievements while they “fail” to act and take action to move ahead. Take the lessons you learned from your previous successes and continue to move forward in your business through selling, prospecting, or marketing, regardless of the state your company is in.
Steve Jobs returns to Apple:
The moment Steve Jobs returned to Apple in 1997, the firm that he founded 12 years prior and then exiled from, Apple was 90 days away from going bankrupt. Steve Jobs made the difficult decision to lay the hatchet to the wind and to re-launch Apple by requesting $150 million of cash from his long-time rival Bill Gates of Microsoft.
When it was made public that Apple was partnering with a rival, loyal Apple fans were booed! Jobs realized that, without the money, Apple would not survive.
Then, he simplified Apple’s products. Apple offered a dozen variations that included the Macintosh computer, as well as an array of other items.
Jobs ‘ new slogan is “Think different.” The company’s CEO asked, “Which brands should I recommend to my friends to purchase?” In the event that he didn’t receive an answer that was simple, He drew an outline on the whiteboard and put in the two top spaces, “Consumer and Professional,” and at the bottom, “Desk and Portable.” On the grid, he listed the only “4” Apple product offerings, including a desktop and laptop for use in business and desktop and laptop for home users. The move reduced the Apple product range to 70%, which cut operating costs by half. It also and reducing the number of employees by 3,000 employees.
Steve Jobs’s decisive actions and hard-hitting shakeups resulted in a positive outcome! Apple was able to go through a period of losing $1.04 billion in its first fiscal year following Jobs’s return and then earning an income of $309 million just 12 months later in 1998.
Steve Jobs’ 3-step program for Apple:
1.) Revive Apple by asking for a cash injection of $150 million from its long-time rival Bill Gates of Microsoft.
2.) “Think differently” Campaign A streamlined version of Apple’s product range from fifteen to 4 items and reduced the range of Apple’s products by 70%.
3.) cutting operating expenses by half and reducing the workforce by 3,000.
Ford Chief Executive Alan Mulally
Alan Mulally, the former President and chief executive officer of Ford Motor Company and former CEO and President of Boeing (for 37 years), helped save one of America’s most storied automotive companies by challenging the status established order.
Ford appointed Alan Mulally in 2006 as the company’s CEO 2006. Ford to help the struggling auto company from going into bankruptcy. The auto business in the United States was known for operating on the “status the status quo” basis. Detroit, as well as the automobile industry, was sinking in debt and living in its glory times when Detroit was the most prosperous city in America using outdated methods and assumptions.
Alan Mulally was an aerospace engineer with no notions about the way Detroit worked. He was able to see the potential in Ford and sought the resources and talents at Ford that were largely overlooked by the insiders.
The solution was a three-step strategy.
Bryce Hoffman said Mulally, as the CEO for the Ford Motor Company, did the following:
1. They streamlined their product lineup similar to what Steve Jobs did at Apple and utilized the money that he had saved to offer Ford’s products with class-leading features and..styling.
2. He collaborated with suppliers as well as his union, the United Auto Workers Union, to make a positive environment for both. The concessions made by the union were needed to maintain the auto production at a high level in the United States and to profitably create new cars.
3. Mulally was always focused on culture and teamwork. Ford eliminated its sexist professional culture by showing the executive team how they could succeed more as a group than they ever could be in competition. (Created Ford’s “One Team”: “One Ford” Mantra)
Mulally, within just three years, turned Ford Motor Company profitable, and they didn’t require to get a Government bailout!
Don’t let your business be based on the past’s glory and success. Continue to push forward to transform and enhance your business. Like Steve Jobs at Apple and Alan Mulally at Ford Automobile Company restored their businesses using their three-step strategy and three-step plan, you can too!