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Preparation - The Key To Prosperity In Changing Times
Sun 11th September 2011
Knowing the inevitability of change, there's nothing to be gained from failing to be ready for whatever transitions and transformations come your way. Cities built near faultlines will always endeavour to make new constructions as earthquake-proof as possible, because even though they don't know when the earthquake will strike, nor how strong and deep it will be, they do know that the quake will come sooner or later - and just as a major earthquake can devastate a poorly prepared city, so an unplanned-for change to a business's circumstances can shake that company to its foundations.
The city that's protected from earthquakes has in its armoury one defence that makes all others possible: the knowledge that, sooner or later, the ground will start to move. The same attitude can be every bit as successful for any business; by understanding what is likely to happen, the organisation can be ready to deal with these eventualities. Chances are, your company won't need to worry too much about geological activity, but there are a number of areas in which change can be foreseeable - and in which adapting to change can bring real prosperity to the organisation, whilst a failure to accommodate new conditions can be very harmful. Individual factors will of course vary from one organisation to the next, one industry to the next, but there are nonetheless very common categories which most companies will have to be aware of.
Resources
A recipe is only as good as the ingredients used - and the availability, cost and quality of ingredients can fluctuate enormously, depending on climate, consumption trends, politics and land use. In recent years, extreme weather conditions in southern Asia have caused reductions in the supply of rice, and this in turn has led to an increase in demand for (and price of) wheat. A food producer that is prepared for change in the supply and demand of staple ingredients can take advantage of developments, introducing new lines unaffected by wheat prices whilst adjusting the price of wheat-based products to ensure that part of the business isn't forced into making problematic losses.
The same can be true of any business, for there's no company that doesn't have some manner of resources to rely on - if not food, then other natural products such as wood or ore, perhaps fuel and power, vehicles that need to be kept on the road, high-speed internet connections that need to be maintained, or indeed just funds and labour. Whatever your business requires, preparing for changes in supply or cost is always essential.
Technology
If there's one area where the certainty of change is obvious and highly visible, it would be consumer technology. New technologies come along rapidly and regularly, while older equivalents frequently disappear (and rarely take much time in doing so). Many independent video rental stores were caught out in the first years of the twenty-first century as demand for VHS suddenly and drastically tailed off. An inability or unwillingness to see the impending rise of DVD may be understandable - particularly in light of the failure of the Laserdisc format a few years earlier - but that didn't prevent it causing a catastrophic drop in revenue for many retailers.
Technological changes may directly affect the goods or services that your company supplies, or they may pertain to how consumers access your business - such as the move towards retail sites being easily accessible via mobile devices - but however the change relates to your business, adapting will be the only way forward. It's always a good idea to keep abreast of technological progress, so that you can better understand what will make a difference to your company, and how you'll be able to accommodate the new development.
Legislation and government intervention
Not all companies are able to sell their goods and services however they see fit. Sometimes, politics may interfere - duties payable on a product may increase, pushing the cost up; there may be restrictions on who can purchase a service and how it can be used (for instance, age limits on tobacco and the ban on smoking in public buildings); legislation may be introduced to control how a business operates, such as the rules affecting farming standards; the European Union may grant Protected Designation of Origin to certain foods, forcing businesses outside the designated region either to change the name of their product, or to stop production entirely; or some products may even be banned outright.
However, such political processes are invariably slow and cautious; any legislative or regulatory intervention in a market will have been proposed some time before it comes to pass, giving all affected companies the time to prepare and adapt. There is no excuse for not doing so, and companies that wait until it's too late will inevitably suffer.
Market and economic shifts
On the other hand, change sometimes happens for reasons beyond anyone's control. The economic collapse of recent years has restricted disposable incomes for countless millions of consumers, as well as reining in spending by no end of organisations large and small. Yet individuals and businesses are still spending, there is still money moving around the economy, and those businesses that continue to flourish have been able to adapt to the new environment and make it work for them. Yet again, the key is preparation, in knowing what might happen and being able to change the business's approach to fit the new conditions early and quickly.
After all, economic downturns - just like earthquakes - are guaranteed to come along sooner or later; the question is not if, but when, and how much. Understanding what's likely to happen and how you'll deal with it gives your business the power to stay in control when other businesses stumble; keep an eye on the future, and you can be confident of always turning change to your advantage.
Author is a freelance copywriter. For more information on managing change course, please visit https://www.stl-training.co.uk
Original article appears here:
https://www.stl-training.co.uk/article-1940-preparation-key-prosperity-in-changing-times.html
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