While Washington politicians continue to argue over the
fiscal cliff and the Nation’s tenuous financial position, companies may feel
left on the sidelines. Many are caught
up in the turbulence waiting to make investment decisions and struggling with
how to adapt their strategies in an environment of uncertainty. Some are taking a strategic pause waiting out
decisions. Unfortunately, they wait with
no voice in the debate, a seemingly decreasing list of options, and a market
that continues to churn on.
Standing on the sidelines searching for a way to navigate
these waters is a recipe for decline.
Holding onto customers and programs while drawing down on backlog cannot
deliver growth. Executives may believe
they can outlast the turmoil, conserve resources, and ultimately emerge
relatively unharmed. But, standing still
is a recipe for disaster and demise.
Companies willing to turn their face into the wind and press forward are
more likely to emerge stronger and better positioned. Deciding to stay on the bench will lead to
entropy and decline.
Companies should instead play all the cards in their deck
while remaining mindful of their environment and the risks involved. Great poker players often remain in the game
despite the cards they’ve been dealt. These
players have learned to keep their options open. You can’t win if you fold. Going “all in” is sometimes a strategy to
bluff and deceive opponents that your hand is stronger than it actually
is. Other times, you push your chips in
because the odds are clearly in your favor.
Poker is a game of risk and while there are strategies that improve your
chances to win, the turn of the deck still creates a wild card for which you
may win or lose.
What does this mean for companies facing an uncertain
future? First, companies should
recognize that choosing to wait for a better hand is like folding. In the market, there is no such thing as
holding your hand. If you’re not moving
forward, you’re headed backward. While
the next hand may offer a better chance to win, it may be equally bad or worse
than the hand you have now. You may be
able to conserve your cash by choosing not to play, but someone will win and
they will have an even greater reserve to draw from in the next round. Companies should be in the game to win, not
lose. Despite the circumstances, there
are always companies that find a way to capitalize. This is where innovation comes in.
Second, you can’t accurately anticipate what your
competitors will do. Staying in the game
gives you more information to assess the hands of others at the table. A bluff is often designed to get your
competitor to show their hand first. It
also costs your competitor more to stay longer (as it does you). This kind of hardball approach drains a
competitor’s bank making it more difficult for them to play the next
round. To make this effective, you
should have an exit plan knowing at what point you choose to walk from the
hand. Staying competitive allows your
organization to remain sharp. You learn
more when you’re in the game, not watching from the sidelines. By choosing to wait, your organization is
losing its competitive muscle and will be weaker. Keep your competitive edge by playing!
Lastly, when you know you’ve got a strong hand, play it
well. Many companies have great products
or capabilities that can be readily adapted to the table they're playing. Be careful not to overplay your hand and not
go “all in” too soon. Markets change
rapidly and if you show your hand too soon, you give competitors an opportunity
to play you deep and exhaust your resources.
Keep in mind that the same hardball approach could be played against
you.
Dealing with uncertainty separates winners from losers. Companies should keep all their options in
play and remain agile enough to capitalize on emergent opportunities. That should mean a balanced mix of:
- · Maintaining current business through superior customer service.
- · Constantly searching out and implementing efficiencies to drive out cost.
- · Innovating to create new products and capabilities or to open new markets.
- · Experimenting and pursuing new business models and adapting to market shifts.
- · Staying competitive by staying in the game. Don’t let your competition muscles get soft.
Play all your cards and consider folding only when it’s
clear your hand will lose. You won’t win
if you don’t step up to the table and play.
Duane Grove is founder of Connect2Action, a strategy
execution specialist at the intersection of employee engagement and executive
leadership, igniting innovation as a lever to accelerate your growth. Follow Duane on Twitter @connect2action and
connect with him on LinkedIn, Facebook, and Google+. Learn more by visiting
www.connect2action.com.
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