Have you ever seen this? The economy, lack of desire for a product/service line or some other event causes a dramatic drop in revenue. As a result, staffing is cut. A few of the most talented people depart, leaving a weak team. A theoretical new revenue stream is discussed, but the specifics around how to make that happen never quite get there, making it difficult to attract the people that buy the goods or services. The ostrich approach moves into full gear as people discuss the plan (but don’t execute it), thinking the business has turned the corner, but miss the warning signs that things are not actually getting better. Lots of meetings happen, and people are focused on the activity rather than the results. Emails fly with large numbers of people being copied for no apparent reason and people feel better because there is activity. In the meantime, the business is circling the drain. The only question is, can someone put the plug in before all the water drains?
While it is difficult to turn a business around when it has gone too far down a path, the key is to have a flexible approach and ability to refocus as the markets change. Things to watch for include: dramatic changes in revenue, dramatic changes in the goods purchased or services provided, strength of the team in place, and a trajectory that is different than competitors or the market in general. To have forward momentum in a business, it is critical to have the right people in the right place focused on the right things. How are you having honest dialogue in your business to make sure that changes creeping in the business don’t cause you to circle the drain?