Why do some small businesses fail to make it? Is it inevitable that they will be pushed out by big corporations? These are difficult questions to ask but are ones that small business owners must consider. Running a business is complex and comes with unique problems, so how do you prepare for change?
One thing we should know and understand is that change always comes — and usually sooner than we expect. Sometimes change is planned and directed, but other times change comes seemingly out of nowhere, and threatens to redirect your entire paradigm for success. Because of the unpredictability of the business world, small businesses should start using strategic thinking to enact change initiatives and plan for sudden change — even if business is great. Here are five ways to use strategic thinking before you implement change in your small business.
Understand the “Big Picture”
Small business leaders are usually tremendously skilled in multiple areas of the business, but when it comes to how they think about their business, they tend to focus on one thing — operations. The funneling of their focus on day-to-day management limits their readiness to develop needed strategies for encountering change. This hyper focused mentality should be replaced by strategic thinking.
Strategic thinking involves gathering information, challenging assumptions, and understanding the “big picture” in your decision-making process. In the recent book, The Infinite Game, famed author Simon Sinek refers to a “Just Cause”, that reinforces the concept that we need to fully understand where we are trying to go with our business. By reminding yourself of your vision and goals, while also analyzing your overall business patterns, structure, and processes, you will be able to meet the challenges of making needed changes. Failure to strategically think within the broader context may leave leaders’ efforts to navigate change entirely focused on the wrong issues.
Scan Your Environment
The Butterfly Effect is a metaphor that says a small butterfly flapping its wings in Asia can eventually lead to a hurricane in the Atlantic. The metaphor, when applied to business, explains that a small change can lead to bigger results in the grand scheme of things. Many small business leaders fail to routinely scan the environment of their business, and they don’t recognize the minor changes occurring around them that could ultimately affect their business.
Every business is susceptible to the influence of external factors, ranging from political policies to technological innovation, so leaders must monitor trends and keep an eye on potential disruptions. Although these disruptions are sometimes out of the leader’s control, strategically thinking about how they can be factored into planning will help the business meet the changing demands of the marketplace.
Use Visual Thinking
One of the most practical methods of strategic thinking involves using images to stimulate the mind. Pictures provide both content and meaning, and, more than any of our other senses, our brains are stimulated by visual cues. We need to see the big picture to create plans and facilitate strategic change, but it’s often a struggle to visualize the complexity of our decisions. Excellent strategic thinking involves generating deep insight and foresight.
At times, many leaders obsess over data, making charts, graphs, and bullet points. These, of course, aren’t poor processes, but we risk becoming overwhelmed with the details and forget the value of the big picture and simplicity. Sketch out ideas, use images of your surroundings, take pictures, and repeatedly ask yourself, “How can this image help solve problems?”.
Include Others
As mentioned, small business leaders are usually tremendously multi-skilled individuals, and may revert to lone ranger tactics in planning for change and making important decisions. This is a disadvantage to the company. When business leaders include the perspectives of others, their team members, cross-functional departments, and even entry-level employees, they open up the power of multiple perspectives to ignite strategic change. This does not necessarily mean that all decisions should be made by gathering a general opinion but soliciting the ideas of others can be powerful.
Not only does involving your employees in decision making take some pressure off of your shoulders, but it also helps the policy be executed effectively. People support what they help create, so including your employees in decision making can help generate support of the new policy. Because your employees are the ones who will be responsible for the execution and implementation of the change, involving them in the decision-making process will raise their level of commitment and motivation to drive the vision. Leaders can’t go at it alone.
Don’t Forget the Transition
Strategic thinking and planning will mean very little if business leaders do not consider the transition. Leaders can use every strategic thinking exercise and have creative plans, but if they don’t consider how they can smoothly introduce the plan with their employees, it could quickly fail. Dr. Britt Andreatta, in Wired to Resist, argues that all the detailed plans in the world will not be accepted by people who are resistant, reluctant, and downright oppositional. This is why it is so important that leaders consider how they will condition their employees to receive the new changes.
Change is usually stressful, so potential emotional responses need to be considered before the plan is implemented. Including others in the strategic thinking process will help employees through the emotional challenges of change. Other methods include keeping a clear purpose, recognizing progress, creating psychological safety, and exercising patience. Leaders must incorporate in their strategic thinking process how they plan to handle their employees’ reaction to the transition.
Change is coming, so small business leaders need to use every tool at their disposal to shape how they are going to stay ahead of the curve. Too many small businesses fail to use methods of strategic thinking, when, in reality, using strategic thinking could be what a business needs to make the leap to the next level of success.
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