We've all seen that Friends episode - you know the one: "Pivot...PIVOT.....PIVOT!" as they try and manoeuvre the couch up the narrow stairs. In a single moment, "pivot" became a bad word!
But should we run our futures based on a Friends episode?
Why Changing Direction is a Strength, Not a Weakness
The ability to pivot—to strategically change direction—is becoming an essential skill for modern leaders. Instead of viewing a change in course as a sign of failure, senior leaders should see it as a powerful tool for growth and optimisation. In an environment where rapid disruption is the norm, being prepared to adjust your plans is a vital part of effective leadership.
Top 5 Reasons Why Pivoting Should Be Part of Your Strategic Thinking
Adapt to Market Changes: Pivoting allows organisations to remain relevant and competitive by responding to new technologies, evolving customer preferences, and shifting economic conditions.
Unlock New Opportunities: A pivot can reveal new markets, products, or services that were previously unforeseen, encouraging exploration and innovation.
Mitigate Risks: By being willing to change course, companies can avoid over-investing in ventures that are not working, minimising potential losses.
Enhance Innovation: A culture that embraces pivoting encourages creativity and experimentation, motivating employees to think outside the box.
Build Resilience: Organisations that are skilled at pivoting are better equipped to handle unexpected challenges, which is crucial for long-term success.
Understanding the Neuroscience of Pivoting
Our brains are naturally adaptable, a trait known as neuroplasticity. This is the brain's ability to reorganise itself by forming new neural connections throughout life. For leaders, understanding this concept can help demystify the fear of change. When a pivot is needed, neuroplasticity allows leaders and their teams to rewire their thinking, learn new strategies, and adopt new behaviours.
By framing pivots as opportunities for growth, leaders can leverage the brain's positive response to novelty and challenge, leading to increased engagement and motivation.
Key Concepts to Embrace Pivoting
Embracing the pivot requires understanding and applying several key concepts:
Business Models That Support Pivoting
Certain business models are inherently more adaptable and can be applied in almost any industry:
Lean Startup: This approach, popularised by Eric Ries, focuses on minimising waste and maximising learning. It involves building a minimum viable product (MVP), testing it with customers, and iterating based on feedback.
Blue Ocean Strategy: This strategy, outlined by W. Chan Kim and Renée Mauborgne, encourages businesses to create new markets rather than competing in existing ones. This often requires a willingness to pivot away from traditional industry norms.
The Power of the Pivot: Examples
Pivoting can take many forms, from entering new markets to refining a product based on user feedback. The common thread is a willingness to adapt and embrace change as an opportunity.
Here are some notable examples of successful pivots:
Netflix: Pivoted from a DVD rental service to video streaming and then to producing original content.
Amazon: Started as an online bookstore and pivoted into e-commerce, cloud computing, and digital streaming.
Starbucks: Changed from selling coffee beans to creating a café experience.
Nintendo: Evolved from a playing card company to a leader in video games.
Samsung: Pivoted from a trading company to a global leader in electronics.
IBM: Shifted from a focus on hardware to software, services, and cloud computing.
Instagram: Originally a location-based app, it pivoted to focus solely on photo sharing.
Slack: Started as a gaming company before pivoting to become a widely used internal communication tool.
Conversely, many companies have suffered the consequences of failing to adapt, getting stuck in a strategic "mud."
These organisations did not address risks of complacency and the importance of continuous adaptation:
Pivoting is not a weakness but a strategic imperative. By understanding the mindset of adaptability, embracing key concepts, and learning from both successful and unsuccessful examples, you can cultivate a culture that thrives on change.