Reframe your business thinking
Tuesday, October 30, 2012 at 9:11AM
The lever you need to press is attitude.
We often think we are letting go of old ideas when in reality we are just adjusting our grip. Our lateral notion of change turns out to be cosmetic, not fundamental.
We sometimes see change only in physical terms, like an actual product or an operational process.
Those things are an outcome of change, not a driver of it. What needs to shift first is attitude.
Exactly what is a lateral idea in business?
It needn’t be the tectonic move that redefines the industry. It can be a simple realignment of relationships.
When times are tough, we focus on getting through the next week rather than building a platform for sustainable growth. Yet in times of change, that platform needs to evolve quickly.
A shift in attitude can help for two reasons: it prompts new ideas, and it’s free.
Simple opportunities for change
Many businesses treat suppliers as the bottom of the food chain. Communication is limited to squeezing the lowest price.
What if you treat suppliers as the start of the food chain? Is there a case for a special promotion of their product? Can you place a bigger order with them at a discounted price, lifting both volume and profitability for both parties?
That dialogue can open doors.
What about product development? Can you suggest tweaks to their product that enables you to sell more of yours and theirs?
Want to know what the competition is up to? Your suppliers probably know more than you do. Collaborative, rather than combative, dialogue can lead to mutual benefits, like freeing your resources, enhanced product development or simply delivering more efficiently.
This isn’t a revolution in physical terms. The product hasn’t changed but the attitude has. You are now in it together. Can you become their customer of choice?
It works with other relationships too. If you can’t find a supplier, try it with an employee.
What about the flip side?
If you’ve got customers, you’re a supplier too.
You would probably be impressed if a supplier took a good look at your business then turned up one day and said: we’ve got some ideas that might make life easier for you.
Can you do that for your customers? Can you develop a two-way dialogue with them, turning the relationship into a special experience?
Appreciate what they do and do something – anything – for them. Build a quality customer, not just a sale. If you’re in B2B, how can you tweak your offering to help them grow?
Extend your perspective beyond your own profitability to theirs. Show them how you can generate business for them, or improve their experience of what you supply.
Food chains other than yours can also help
To think outside the square, get outside it. Look for an industry which has nothing to do with yours. Go to one of their trade shows. Don’t just notice the differences. Find the similarities. How do other people do it?
To get ideas, try a simple re-framing. Draw a line down the middle of a page. On the left, write your attitude toward each stakeholder in your eco-system: shareholders, managers, employees, suppliers, community, customers or any other group.
On the right side, write down what the opposite attitude would be.
Then ask yourself three simple questions: which one is better; what can I do to improve it; how can we help each other?
innovation, management, strategy
Reader Comments (3)
My supplier was the one who taught me this. She just kept coming up with ideas on how I could run my business better. Not surprising that I give her most of my business.
Nice simple stuff Al.
Love the trade show idea. Must tell my husband. I met him at one. That was pretty lateral.