"Oh good, a philosophical post," you mutter as you shrug and roll your eyes. No, really, you should stick around for this one. On tap: reactionary versus proactive decision making.
The world is an ever-changing place (obviously). Mobile devices, the Internet, and social media all drive that change at a vastly accelerated rate over what we encountered even five years ago. Businesses have to be far more fluid than in years past, meaning they have to be prepared for market changes and expect significant shifts in their respective industries. How businesses implement policies to handle market shifts - when the rubber meets the road - says a great deal about how those businesses are run.
When a company responds to market shifts and creates action plans after the fact, it is said to be reactionary. On the other hand, when a business anticipates market tendencies and preemptively aligns itself with future outcomes, it is said to be proactive. Companies shy away from proactive decision making for a lot of reasons, but none more than the ever-present business assassin, risk. What if the company shifts prematurely? What if the anticipated change doesn't occur or occurs in a manner other than what's expected? While these concerns are legitimate, they are no less avoidable than other inherent business risks when approached with the right frame of mind.
The world is an ever-changing place (obviously). Mobile devices, the Internet, and social media all drive that change at a vastly accelerated rate over what we encountered even five years ago. Businesses have to be far more fluid than in years past, meaning they have to be prepared for market changes and expect significant shifts in their respective industries. How businesses implement policies to handle market shifts - when the rubber meets the road - says a great deal about how those businesses are run.
When a company responds to market shifts and creates action plans after the fact, it is said to be reactionary. On the other hand, when a business anticipates market tendencies and preemptively aligns itself with future outcomes, it is said to be proactive. Companies shy away from proactive decision making for a lot of reasons, but none more than the ever-present business assassin, risk. What if the company shifts prematurely? What if the anticipated change doesn't occur or occurs in a manner other than what's expected? While these concerns are legitimate, they are no less avoidable than other inherent business risks when approached with the right frame of mind.
Look at mobile apps - great example of these concepts in action. Company A sees a market trend - people can't seem to stop buying $0.99 applications that run on mobile devices. Company A seeks to exploit this trend in its industry before its competitors can do so. All the while, Company B sees the same market trend and discusses it ad nauseum. Rather than changing its business model to preemptively capture a potential high-growth market, Company B rejects mobile app development on the premise that sharing revenue with a third-party distributor for each copy of the software sold is ridiculous (even though its current distributor relationship offers an even greater discount on physical products). Six months later, Company B is exploring mobile app development (albeit with the same, "don't-share-your-profit" mindset) because an obvious revenue stream has manifested. Company A has completely reinvented itself, captured a new market segment, and increased its industry reputation all while making a good deal of money in the process. The only reason this was possible was because Company A believes in proactive decision making; Company B does not.
Whatever course you choose when it comes to decision making, be sure you evaluate the short- and long-term consequences of both courses. Be sure you understand the managerial projection this issue will have on your employees. When at all possible, try and stay ahead of the curve. Decide, implement, and leave your reluctant competition behind.