STEERING THROUGH CORPORATE DISRUPTIONS

My experience in the corporate world has exposed me to a realization that businesses go through a lot of upheavals due to internal and external factors that may be detrimental to the growth of businesses such as new competitors, new market trends, ever changing technology and economic fluctuations. And this is what I will term as business disruption. This disruption usually occurs whenever a radical change is introduced in the echo system of an industry due to the factors beyond the control of the senior executives.

Seeing the current time disturbances caused in almost all types of industries, it will be prudent to conclude that disruptions are now a part of everyday business environment, where it has great potential to distract corporate leaders away from their core business. The disruption term has gone too broad to includes a variety of sudden changes in economics, politics, Brexit, trade wars, and presidential tweets. The emergence of globalisation with its interconnectivity through social media has aided the increased speed and sharing of information that forms the back bone of this modern age disruption.

In a KPMG report, titled “decoding disruption” it was noted that business leaders are now under constant pressure to understand and adapt to ongoing change, where avoiding change may no longer be an option.

In my opinion, there are more than one element and incident that can ruin a business. But the truth is, it is difficult to predict when, in what shape and with what magnitude a business disruption will occur. Yet, if we believe various global surveys conducted recently, we can reach a consensus on the five top disruptors and these are startups, epidemics. Client expectations, market forces and calamities.

Therefore, creating a strategy to deal with disruptions asks for a down to earth simple action plan to lead the company from where it stands now to where it is supposed to reach as per planned time lines. This actionable strategy obviously will make every company disruption ready.

So, the question arises, what is the cause of business disruption? It is observed that markets which are disruption prone are generally those that include a large and an inflexible procedure of businesses. Such companies have dominated markets and have been in existence for decades and therefore, they develop a feeling of invincibility. This very omission of reality renders them vulnerable to disruption by the startups that are willing to give more value to customers.

Another route to tackle disruption is mindful scaling of the company. Prior to selecting any fresh investment in technology, software, infrastructure, or production line, do a crystal gage about what all process are needed to be gone through. It may well be equally segacious to weigh other factors like how can client relationships be activated in new areas? Consider if any changes are needed in your marketing strategy as well. If your numbers are stagnant, think of experimenting with new methods of reaching the stake holders.

While you’re checking on all the above, have a re look at how the interests of existing customers are taken care of. Obviously, thinking of this magnitude deserves a well worked out business map, a matured vision and real goal-setting alongside precision decision-making skills. Only if the above conditions are satisfied, mindful scaling becomes a success and disruptions a forgotten failure.

In the race to remain a few steps ahead of all disruptions, senior managers have to consider three questions. firstly, what types of innovation are truly disruptive? Secondly, is low cost the only basis for upending established business models? And lastly, is it only outside forces that are culpable of disruptions? Academicians may disagree about how practice fits theory when the influence and devastation of disruption is discussed, but business leaders across sectors need to be keenly aware that established models are under a continuous threat from technology oriented disruptions. Therefore, in my personal opinion, self-created disruptions in our policies, procedures and market evaluation may keep us ahead of competitors.

We must remember that adapting to disruption requires a management outlook that embraces rather than resists. It is clear from the experience of past two decades of rapid business changes, that even established business houses collapse and crumble if their leaders fail in being a visionary, strong character person and poses the required traits to lead their organisation when a crisis knocks at their door. The three cardinal principles to keep our heads above water are leadership, Company culture & customers.

THE VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL

COL ANUPAM JAITLY (R) The writer is defence expert, motivational speaker and corporate trainer