In the first part of this article, I discussed the sense many business owners have that “my company is different.” Many times CEO’s who belong to the “this company is different” school of thought ask me: since I don’t have experience in their particular industry, how could I be of help? My response is to ask them whether, in view of their industry knowledge and that of their top team, they might be at risk of static thinking.
Today’s business environment is incredibly dynamic. New technologies and business models are redrawing the landscape of many industries. Most companies must adapt to a rapidly changing environment. If one accepts this premise, then the CEO needs to get outside of old, reflexive habits and thought processes. They must seek out and identify people, technology, alliances, collaborative relationships, process improvements and other approaches that can improve the business. It is not going to happen if the company continues on the “we have always done it this way” path. Nor will it help if they ignore trends that have transformed other industries and might be about to do the same to theirs.
Industry Examples
Case in point: Walmart’s innovations in integrating its IT systems with those of its suppliers, to coordinate planning of production, logistics and store inventory. These innovations have had an impact on industries well beyond retailing. Another case in point: IBM achieved one of the most successful transitions in recent business history, from a mostly-products company to one that consists largely of services. They did it under the leadership of Louis Gerstner. Was Gerstner a long-time technology CEO who knew the industry intimately? Absolutely not. Prior to his appointment to IBM, he had been running RJR Nabisco, a tobacco and snacks company. He succeeded in part because he brought to IBM a fresh point of view and was prepared to shake up the company.
What Smart CEOs Recognize
Smart CEO’s recognize that they are not “all knowing” or “all seeing.” It is likely that he or she has some areas they could improve on—in management capabilities like planning, marketing and talent management. Almost all companies have issues within their strategy, structure, processes or culture that constrain company performance, jeopardize employee motivation, limit the company’s horizons and even threaten its survival. These challenges can often best be seen and dealt with by taking a more holistic viewpoint.
Like other management frameworks, the No Man’s Land framework highlights issues that are each company’s specific version of fundamental issues faced by all businesses. The framework provides the organization with specific areas that they need to address and correct in order to avoid failure and to build a sustainable business.
Once they see their challenges in the context of No Man’s Land, CEO’s and management teams of growth companies (and companies that could be growth companies) see that they have reached the uncharted waters of No Man’s Land. It is at this transitional stage or “inflection point” where they must make tough decisions about how to survive and prosper. Otherwise they will fail.
My experience is that, whatever the business model or industry quirks, it’s worth considering how a company’s specific issues relate to core business principles and best practices. It’s the best way to help companies that are too big to be small but too small to be big grow out of No Man’s Land. Entrepreneurs who want to make their company all that it can be and achieve its potential owe it to themselves to step back and look at their company more objectively.
To learn more about how to grow out of No Man's Land, request our complimentary ebook which include insights from Newport's own best selling author, Doug Tatum.
Mike Viguerie has broad executive experience, centered on the healthcare industry, in environments ranging from Fortune 100 companies to start-ups and turnarounds. Contact or learn more about Mike here.
