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Ten business assumptions that will kill your company
The complacency assumption—a belief that what worked well in the past will continue to work moving forward and that you know everything you need to know about your business—erodes competitiveness and could doom your company.
Andrea Olson
April 10, 2017
5 Min Read
Whether it was being first to market, landing in an industry niche or securing a major contract with an OEM, many plastics processors gained early wins at their inception, and have ridden those successes for years or even decades. These companies initially grew by capitalizing on opportunities and exercising good old-fashioned hard work and sacrifice.
Yet as time passes, leadership is handed down from grandparents to parents, and from parents to children. The experience and knowledge of "pulling the business up by the bootstraps" often gets lost in transition. The entrepreneurial spirit fades as it passes from one generation to the next. This is primarily because parents, who never experienced a company environment outside of the family business, and their children lack the foundational passion for the business.
On top of this, advances in technology, globalization of markets and talent wars have all contributed to shaping a new business landscape, where competition can erupt out of left field and revenue growth can shrivel up overnight. Unlike in prior decades, the pace and breadth of change has increased exponentially. The biggest concern in the recent past was losing business to overseas companies; now it can be the obsolescence of your market in its entirety. Second-, third- or fourth-generation companies stuck in their comfort zones could have a rude awakening.
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The silent killer that has worked its way into these companies is the “complacency assumption.” It can be defined as:
an acceptance of "this is the way we do things, and always have";
a belief that we "already know everything we need to know";
a perception that "what we have done in the past worked then, and it should work now."
This mindset ultimately will be the organization's downfall. Here are the 10 complacency assumptions that will ensure the death of your company in the long run, despite any other factors.
I know my competitors. You might know who your existing competitors are, but what future competitors are you not considering? Where is your industry going as a whole? For example, some makers of 3D printing systems think they can ultimately compete economically with injection molding on smaller runs. Are they on your radar? What about Industry 4.0—are your competitors integrating that technology and gaining a competitive edge? It’s not simply about managing today, but strategizing for tomorrow.
I know my customers. Again, you know your current customers. Examining new markets and new customer bases are the key to growth. Unless your target market is growing, you're just riding the merry-go-round with your competitors and the same customer base.
I don't need marketing, just more sales. Marketing preps prospects for the sales force. Without marketing, you are simply extending the length of the sales cycle and making it a steeper, uphill climb for your reps to gain new customers.
Our collateral just needs a "refresh." While your materials might be outdated, a refresh is no silver bullet. Every sales tool needs a clear and distinct purpose. Examine your toolkit and determine the function of each piece, or whether you even need to have it at all.
Our prospects just don't "get it." This begs the question, why? If you're not effectively communicating what you do and why it's different, no amount of repetition is going to change the outcome. Drop the disdain and figure out why it's not getting through.
Our only barrier to a sale is cost/price. If your offering is priced out of market, you're in the wrong market. If your offering is on the higher end of the spectrum, your value proposition isn't resonating. Change your pricing structure or change your message or offering.
We have great customer service—we don't need to improve in that area. If you have a strength, why not capitalize on it? Take something that's great and make it even better. Use it to increase the gap between you and the competition.
We don't need to waste money on flashy technology. Technology investments shouldn't be about keeping up with the Joneses, but about how they can optimize processes, reduce costs and differentiate the customer experience. Don't fear technology—leverage it as a differentiator.
We just need to wait for the economy/market to pick up again. A wait-and-see approach might have worked in the past, but that's no guarantee it will work again. Entrepreneurs are always looking for new angles and ways to build and expand their business. Bring back that spirit to take control of your company's future.
We don't need to change what's not broken. Continuous improvement is inherent to successful organizations. They embrace change, not fear it. Once you believe something's perfect and have “checked that box,” you've already relegated yourself to being satisfied with "good enough," providing competitors the opportunity to surpass you. Don't give them that window.
Initial success may have come through serendipity, but maintaining that success requires persistence, creativity and a continued drive to improve. Once you become complacent, you become stagnant. Take time to challenge your own status quo. Assuming you have all the answers only seals the fate of your organization.
Andrea Olson is founder and CEO of Prag'madik, an industrial marketing and communications consultancy, and also Director of the Midwest Manufacturing Business Coalition, a non-profit organization dedicated to the advancement of mid-market manufacturing in the United States.
Olson’s 17-year, field-tested background provides unique, applicable approaches to creating leaner, more effective, technology-driven, industrial marketing strategies. A four-time ADDY award-winner, she began her career at a tech startup, and led strategic marketing efforts at two global industrial manufacturers.
Her most recent book, No Disruptions, provides manufacturing leaders an easy, educational read on how to optimize revenue generation through marketing, branding, and effective technology implementation.
In addition to writing, consulting and coaching, Olson speaks to leaders and industry organizations around the world on how to craft an effective marketing and communications programs to discover new sources of revenues and savings. More information is also available on www.pragmadik.com and www.nodisruptions.com.
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