In our last blog, we introduced the first four triggers of a business crisis. At some point in the life of your business, you will face new competition, revolutionary technological changes, a widespread culture change or an economic downturn. All of these forces have the power to completely upend a company, sometimes overnight.
The good news is that every problem can be an opportunity. There are certainly many examples of companies that have crumbled under the pressures of crisis or have fallen behind when they failed to adapt. However, there are also examples of companies that found ways to innovate, adapt and thrive when faced with major challenges.
Lego has been a staple on toy store shelves for decades. But in the early 2000s, the company was struggling. It posted a loss of $174 million and was on the verge of bankruptcy. Its products had become overly complicated, and it was no longer connecting with its core customers.
In the midst of this crisis, Lego reinvented itself with a simpler product line that appealed to its customers. The release of “The Lego Movie” in 2014 solidified Lego as a cultural force.
Because CEO Jorgen Knudstorp saw the crisis at Lego as an opportunity to refocus and reconnect with customers and core values, Lego is stronger today than ever.
Along with the triggers we discussed previously, the following crisis triggers can threaten your business or be an opportunity to thrive when your competitors fail. Anticipation is key.
1. Change in Government Regulation
If a change in government regulation blindsides you, it could upend your business overnight. Many of us had that experience on a large scale when COVID-19 shut down almost all in-person events and meetings. In that moment, business leaders had to innovate fast.
Huge arena events were a key component of Tony Robbins' immersive training. When the government shut everything down in the opening weeks of the pandemic, Tony started talking with other brilliant minds, such as Zoom founder Eric Yuan. They figured out how to create a virtual setting that replicates the energy, emotion and feedback of Tony’s in-person personal development and business growth events.
They designed and built a completely new studio with 30-foot-high ceilings and 16-foot-tall retina screens wrapping 180 degrees around the room. This interactive experience enabled Tony to see participants and engage with them in a virtual environment, very much like he would at in-person events. The result amplified his impact because he could now serve people from all over the world without them having to travel or leave their homes.
Tony’s live virtual experiences continue today, allowing millions of people to sign up and attend his life-altering workshops.
2. Change in Customers’ Lives
While good businesses focus on anticipating and meeting customers’ needs, customers change. They grow, age, have children and change preferences.
Particularly if your ideal demographic is dominated by one or two demographic groups—such as baby boomers or Gen Z—you must be agile enough to adapt as that customer base changes or ages out.
3. Change in Employees' Lives
You’ve worked hard and assembled a great team, and you feel like everything is finally running smoothly. Then, one day, your top salesman comes to you and tells you they need some time away. Maybe it's the birth of a child, the death of a parent, a mid-life crisis, a divorce, or they’re just burnt out. No matter the cause, they can no longer contribute, and your company takes a huge hit.
While these kinds of situations might seem like they come out of nowhere, our experience is that with some work and foresight, they are more predictable than you think, and you can be prepared. A strong company culture of trust, respect and open communication lessens the likelihood of your being blindsided by your employees. When you have built a collaborative culture where all of your employees learn from each other, the impact of losing one employee is softened.
4. Your Life Stage
Sometimes, it isn’t the life changes of your employees that throw a wrench in your business but changes in your own life. Don’t forget to look in the mirror and be honest about your priorities, thresholds and needs.
Do you need to spend more time with your family? Are you feeling burnt out? Will you soon be facing medical challenges that will require more of your time and energy?
Staying focused on your deeper purpose will help you combat burnout and remain true to your priorities. Leveraging your team to handle responsibilities will keep things on track if you have to take a step back.
Change and challenges are inevitable when you are running a business, but they don’t have to derail you. The ultimate competitive advantage is anticipation.
One of the best tools for anticipating and reacting to disruptive crises is the help of an executive business coach. An executive coach offers an outside perspective and can see the big picture. While you might feel stuck in the weeds of daily management, a coach is better able to see your weak spots and anticipate impending challenges.
With the help of a professional executive coach, you can turn crises into opportunities by building a company that is flexible and ready to adapt.
