Question: My small business is doing fine, but things feel "stale." I fear that something could happen and the competition would leave me in the dust. What should I do?
Answer: A great many businesses find that there is a plateau after a few years, when things become a bit routine and stagnant. Sounds like it's time for you to look into some new ways to run your business. Let's talk about this.
In short, consider restructuring your business to foster some creativity and innovation. Break out of the "same old, same old" patterns. A great way to start this process is to modify your physical surroundings. Maybe it's time to repaint your offices, update signage, redo some store displays, redecorate the reception area, punch up your website, or do a few other things which would make your business fun again. Your employees will see the changes. What a great time to announce a change in direction - for your business to become an innovation leader.
Here's the big picture. Many economists and business experts think that we may be entering an entirely new era of economic focus. Long ago was the Agricultural Age, when for centuries most all were farmers. Then came the Industrial Age, when most economic activity was from factory workers. Recently we experienced the Information Age, where the dominant growth was in knowledge workers. Now, technology and globalization have evolved to the point where we are entering the Conceptual Age, where ideas and innovation are the forefront.
Innovation is about creating new products, service and sales opportunities, and also novel solutions to problems. It is the basis and catalyst for growth.
The concepts of "creativity" and "innovation" each embrace some thought about implementation. An idea for a product or service is not worth much in itself, until it has some business application. Besides the great idea, there have to be two other things to make it possible. The first is a sensed customer need, or in other words a problem or desire which customers want and will pay for. The second is a business model and structure to implement the idea.
One big barrier to creativity is fear. Of failure, of looking stupid or of change. That's why there is so little innovation in government; the established system rarely gives incentives and often punishes divergent or creative opinions or thoughts. In your business you're free to sponsor creativity and innovation any way you choose.
One way to encourage employees to think forward is to help them get past focusing on day-to-day issues. Some managers help their staff look forward by inviting them to bring in their biggest problem; one that is bogging them down. The manager and employee work together to break the logjam and devise a solution. This allows the employee to refocus on the big picture again, and is a tremendous morale booster.
There is another major benefit of continuous innovation. Times have changed. The old model was: It's the big that eat the small. (Picture the common visual of a big fish devouring a tiny one.) Of course this is still true for very large firms like Microsoft, which constantly look for smaller successful companies to buy out. That's their growth strategy. But for most small businesses, the new model is: It's the fast that eat the slow. The best small businesses are quick and responsive. There is much less locked-in inertia. They are adaptable and can change products, services, markets, or internal structure on short notice.
The main finding of a 2010 study by IBM - involving 1,541 CEOs from 60 countries - was: CEOs believe that, "More than rigor, management discipline, integrity, or even vision, successfully navigating an increasingly complex world will require creativity."
If you and your employees are locked into tunnel vision, you may miss opportunities to out-innovate the competition. Here are some ways to avoid that fate.
- Switch from a "Yes, but..." to a "Yes, and..." approach.
- Consider using techniques like brainstorming and lateral-thinking exercises, if your staff needs a little help.
- Be clear that you're open to new ideas. This could have a side benefit of attracting and retaining highly creative employees, who are more comfortable in a less-restrained work environment.
- Walk the talk. If you're serious about innovation, accept that there is also risk of failure. Not every new idea is a winner.
- Remember that to think outside the box, you have to step outside the box.
The business future belongs to the innovative, and it all starts with ideas. Let's have you leave the competition in the dust instead.
ABOUT SCORE
To learn more about managing cash flow, and other small business matters, contact SCORE, "Counselors to America's Small Business." SCORE is a nonprofit nationwide organization with more than 13,000 volunteer business counselors who provide free, confidential business counseling and low-cost training workshops to small business owners. Call the local SCORE chapter at 360-685-4259 to schedule an appointment. For details about the organization,visit SCORE.org.
