Quite a few business folks regard the theories or ideas on running and affecting businesses as largely those of an ivory towered academic pursuit, a quasi-scientific theory devised by someone whose occupation is not of the real world. Pragmatic business people sometimes struggle to connect book learning and ideas with the competitive world they occupy. At this very moment, however, one such idea connection is playing out on the national stage and all of its “real world” tenets are in play as are its lessons for learning.

Today’s economic situation and the unrelenting march of increased global competition are forcing companies to do one thing — change. Ignoring for the moment the diverse dynamics that are driving this change, the fact is that change is required for survival.

Some entrepreneurial managers will seize this opportunity from a proactive position while others and their companies will be doomed to the reactive posture. In both cases, change will occur. In one it will be micro and manageable, in the other it will be macro and unmanageable.

One concept of managing change is based upon a simple premise: pain management. People and organizations will remain where they are until the pain of remaining in that position exceeds the pain of changing. Nothing really dramatic here requiring any stretch in logic, but think about how this is playing out in our national economy.

General Motors and the auto industry in general are trying to move away from their traditional cash cows.

Why? Because the pain of staying wedded to cars that the public no longer wants (e.g. going out of business) now exceeds the pain of changing managers, strategy, and direction (e.g. trying to stay in business). Just look at any industry and see how high fuel prices are causing enough financial pain that the historical patterns of behavior are being discarded for new patterns. Successful change is required for survival.

The risk for any sober-thinking entrepreneurial manager is to witness these changes but mistakenly categorize them only as events, activities driven by specific facts.

While the models above are all connected to a specific catalyst, there will be assuredly another catalyst, followed by another, followed by another, etc. The ability to rapidly respond to these new catalysts, also known as the ability to change quickly and productively. is already a hallmark of managerial success.

This skill set becomes a great and distinguishing difference maker for entrepreneurial managers and their firms. These folks know that they have no magic crystal ball that allows them to peer into the future.

Rather, they have equipped themselves with a personal portfolio of tools that will allow them to catch a glimpse of the future, discern its opportunities, and then quickly transform their organization to uniquely capture this opportunity.

And then they’ll have the ability to wake up the next morning and do it again and again. Such is business success in today's real world.

John F. Riddell Jr., director of the Center for Entrepreneurial Growth-Hamilton County, writes each Tuesday about entrepreneurs and their impact on companies and the marketplace. Submit comments to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at business@timesfreepress.com

07/02/08

Comments