What if you started out your business as a boat builder but turned to building railroads? Or began as a manufacturer of baking powder but turned out producing chewing gum? What if you started as an App for a dating service but morphed into a social media channel for video sharing? Or began a venture intending to be a podcast directory but turned out creating Twitter? Or …
The list goes on. We often start businesses or even careers in one area or industry but somehow opportunities present itself in a totally different way. Or the original idea was blocked, faced insurmountable challenges, to survive one needs to pivot. Pivoting is a necessary strategy when circumstances change.
Today, we say that we are going through unprecedented times. Working from home has caused a rethink about the office. The growing trend of eCommece has been accelerated with this pandemic. Cashless economy has made its presence felt and now looms as a real possibility. Industry 4.0, IOT, AI are now becoming part of the everyday vocabulary. Pivoting is a necessary strategy when the environment we live in changes.
However, when pivoting, we need a strong narrative. A narrative that we need to convince ourselves, our partners, our co-workers, our clients, our backers or supporters. Without one, the pivot will come across as reactionary, fickle, incoherent, even lacking competence and professionalism.
The article by Rory McDonald and Robert Bremner, "When It’s Time to Pivot, What’s Your Story?" from the September-October issue of Harvard Business Review addresses some salient points.
Having pivoted several times in my career, three points are key to me. And as I coach others, they will be especially important during this current phase of the economic cycle.
What is the value you bring to meet a need?
Our narrative has to be anchored in the need we plan to meet. And it is necessary for us to demonstrate the value we bring to meet this need. The best way to think about this is to look at our strengths, or our company's strengths. It would be less believable if we are attempting to do something completely different from what we have experience in. Our partners, co-workers, clients, backers need us to help them understand what expertise, skills or competence we have in executing the pivot.
Take for example, if your company has always been in manufacturing, it may be a stretch of the imagination to say you want to pivot into becoming a digital marketing company. Likewise, if your career has been built in banking, you will need to be very convincing to try to pivot into counselling. But it is not impossible. I have seen it done, and I have done that. It begins with developing concurrent streams of activity, what Jim Collins in Great by Choice calls firing bullets. These concurrent activities or "bullets" are small ventures that does not consume huge resources from your current activity. For a manufacturing concern pivoting into digital marketing might mean starting a eCommerce website or App for its products. For an individual, it could be a hobby or as in my case, voluntary work I enjoyed.
Where is the consistent theme?
This narrative must demonstrate a consistent theme. It could be an offshoot activity, a by-product of what you are currently doing. It could be an expertise, skill or strength that you have developed over some time. Or it could be led by your clients, network of partners or backers. The important thing to make the pivot convincing and more likely to succeed is having evidence that there is a need being met by the value you contribute. For the pivot to be viable, thinking about a strategy to monetise the opportunity needs planning and research. And finally, as the article by McDonald & Bremmer points out, avoid confusing the key stakeholders with your narrative.
When you pivot, move convincingly and deliberately.
Nothing confuses more than a wishy-washy message about how you want to pivot. Having a strategy or plan of action is minimal. Keep the narrative clear and simple. If it takes more than a few points to explain what is the intended move forward, it is likely you are not clear what you are pivoting to. It is better to be patient to develop the strategy and plan of action before announcing the move. But once that has been developed, you must be single minded about executing the move. You will lose your stakeholders if they cannot sense your commitment to the pivot. So, casting the vision of your pivot must be followed by execution.
Pivoting is a reality, especially in today's environment. Let us do it with a good narrative.
