According to the Brookings Institute, more businesses have closed than opened since 2008. This is a serious number. The decline in new businesses openings is unique in the American economy, and coupled with the slow growth (2-3% ) of the economy, presents disquieting news. Another factor that must be considered is the trend of business life spans. Up until mid to late 20th century, the life span of a business was 65-75 years. Today, the current life span of a business is 15 years, and the trend continues to fall.
Today’s blog is the first of a 3-part series on information that warrants attention for the business leader and business owner:
The # 1 factor for a long-lived organization is the ability of that organization to respond effectively to the changing environment. Companies who are more agile with the capacity to respond quickly are those companies that will elude the fate of the dinosaur. A caveat: the change we have seen in the last 10-20 years is nothing compared to what’s coming down the pike.
Several years ago Shell Oil researched big companies that had successfully gone through a major and disruptive change. The research revealed that those companies had some common themes. Every company
- was decentralized
- tolerated innovative risk taking
- had a strong identity
- fostered a strong culture
- had values that were lived out in the organization
The resilience factor – the ability to successfully handle change of all kinds – of an organization (just as with an individual) depends first on the internal mindsets, attitudes and behaviors.
What does your company need to address along these lines?
What is your organization doing to make the adjustments?
Recent Comments