As in nature, in Business Survival of the Fittest – fail, survive, or thrive?
The next generation will create more survivors than the previous one.
There’s a much bigger revolution that’s going on here.
What does this mean to for your business?
Hi as many of you know I love to marry science with business and this topic relates business to Darwin’s theory of evolution by natural selection.
The premise behind Darwin’s evolution by natural selection is that the next generation will create more survivors than the previous one.
Basically the next generation will have more adaptability than the previous one, and that’s because each and every generation has adapted to the environment around it.
We see that in the animal kingdom and even from a human evolution point of view. At school I certainly learn about different variations on species.
If you think about businesses, the same thing is happening.
There’s a big change that’s happening at the moment.
There’s lots of buzz around adopting technology which we know helps with various aspects of business. AI, machine learning, etc are adapting and changing businesses but there’s a much bigger revolution that’s going on here.
Industrial revolutions we’ve had in the past were all about technology, speed and mass production.
But now people are shifting back to experiences. They’re shifting back to artisanal, back to handmade, back to the story behind the business.
A lot of larger businesses are struggling to keep up with this and we are seeing large vertically and horizontally integrated businesses having some real issues, e.g. Wesfarmers issues with their Hardware business, GE selling off significant “non-core” businesses.
We are also seeing these larger established businesses losing market share to smaller businesses, e.g. non-bank lenders (see my article here) or Canva vs PowerPoint
What does this mean to for your business?
It’s really important for us to stay focused on our customers and what they want.
It’s critical we can measure what customers want – we call these the Ultimate Customer Value KPI (UCV) – and then focus your whole business on driving actions that achieve your desired UCV.
You need a framework that helps you; understand who your customers are, how to measure UCV customer outcomes when dealing with them, and identify and take actions to drive the right results.
Our Financial Peak Performance framework does just that. It also links your business goals to your UCV to ensure your business is constantly adapting to the environment around it.
Evolve your business to survive natural selection!