“The only constant in life is change” - Heraclitus In business, significant organizational change is often called a pivot. Pivots can lead an organization to new opportunities... or their demise. The key is knowing when.
At a glance...
Do you really know what a pivot is?
How to pivot with purpose
Business Therapy Episode 15: How Netflix is the model for a pivot
Are you actually pivoting? Pivot is a hot word today in business, especially within the startup space. Pivoting occurs in all businesses, regardless of their stage or size. Despite its commonality, the definition of a pivot is murky. A pivot is a change in a company’s how in pursuit of their why. A company may pivot by switching methods when they realize that how they are operating is not working. Without a why, you are not pivoting Having a defined why is central to the success of a pivot and an organization. A clear mission (an organization’s why) should be the central driver of all activities that occur within your organization. If you do not have a clear why or mission, then any “pivot” is not really a pivot. It is an erratic and random change. Pivots are calculated changes in pursuit of a purpose. No matter how great the change is perceived to be, a change made without a why is doomed to fail. What is your organization’s why? Have you experienced an erratic pivot?
Pivots are healthy Pivots are a part of doing business. A healthy business pivots regularly in response to market conditions and measured metrics that evaluate the success of their current operations. Businesses should be pivoting... but only when the reason is right. Pivots need to be calculated Today, data is overly abundant. Businesses have endless options of software products that can help them monitor and track their performance. Regardless of the tool set, if the business is centered around the value that they are providing their customers and consciously monitoring their value, they can pivot when the time is right. From DVD delivery to streaming, Netflix’s great pivot Netflix is a great example of pivoting done right. They changed their 'how' in pursuit of the same 'why'. Netflix set out to deliver excitement and entertainment to people (their why) Netflix started as a website for ordering DVDs directly to your home. Pivot 1: When streaming technology came out, Netflix pivoted to delivering movies through streaming. Pivot 2: Today, Netflix still acts as a streaming platform but also creates movies and TV shows. Though the methods of delivery have changed, Netflix has stayed true to their original mission of delivering excitement and entertainment to people
Business Therapy #15- How Netflix is the model for a pivot Pivoting can make or break a business – just look at Netflix and Blockbuster… So, how can business make sure they end up on the right side of things? In this week’s episode you’ll learn:
How to pivot your business
When to pivot your business at the perfect time
How to change your business ‘how’ and still deliver the goods (just like Netflix)
Why pivoting can save your business and secure its future
Take us with you on your morning commute or stroll to your home office: