Winter 2006 Newsletter

Does Your Boss Need To Change? By Keith Mudd Director UHV SBDC

The buzzword in the small business world for this year has definitely been “change”. The world has changed and is continually changing. There is no stopping it, no hiding from it and very little chance of ever turning back towards time periods when we were most comfortable or most profitable. Change is inevitable.

In consulting with businesses, I often hear repeated phrases by business owners, such as, “we used to have higher sales back in ’87 and ’96; those were some good years; if the market will ever pick back up like it did in ‘93, etc.” My point is this: leaders get stuck with a particular mindset about how to succeed in business, especially if a particular year in the past was successful or more profitable. The leader literally dreams of duplicating that event and fails to recognize that since then, the world has changed.

Humans are creatures of habit and most of us do not relish change. Yet, the only thing certain in our life on a seemingly continual basis is indeed change. –This is a definite conflict in ideologies.

Give me an example of any successful business that has survived over a period of years, and I will show you how the business has continually changed to match the market’s demand. Give me another example of any business that has failed, and I can usually show you a few things they should have changed. Of course hindsight is at least 20/20, but I would argue the case that you can not have success unless you learn how to adapt and change.

A stagnant leader who resists change and who is continually set on doing it “the way we’ve always done it” can never achieve greatness and too often is solely responsible for the failure of a business venture or the decline of an organization. Sure, the leader often blames everyone else in the company, but ultimately the leader is responsible for changing the very people he or she is blaming. –When a business fails, and you are the only one at the top, there is no one else to blame but yourself.

Phrases like, “our industry changed; the market just went flat; it’s not all my fault”, are some of the excuses I often hear. The real excuse is that it was the leader’s failure to change or the leader’s failure to change management philosophies that led to the problem or failure. –If I have learned anything in life it is that people will make excuses for shortcomings. 

A leader of any organization should spend time looking ahead and attempting to plot the best course of action. Not looking ahead and standing ready to change course puts the business at risk. You must be forward thinking and willing to react (change) on a continual basis.

If you are a leader and feel that stagnation is creeping in, do something about it. Start reading trade journals, enroll in a college course, talk with your accountant, attorney, or banker. Talk to your employees and empower them to give you some fresh ideas. Attend an industry related conference where you might find some kind of rejuvenation from a professional speaker or an industry consultant. Join your local Chamber of Commerce and get involved with other business owners and industry leaders. Remember that you are not alone and that other leaders are either in the same situation as you or have been in the same situation in recent years. It does good to talk about it.

Often times we see that a business leader has reached the point where the leader is either no longer effective, stagnant or just can’t keep up with relevant changes to his or her industry. It may be time to face the reality that your time has passed and that it is time to step down. This is not an easy decision, but one that should be on the table if and when a business or organization becomes stagnant.

–Life is too short, and going down with the ship should not be your only option.

As always, before implementing any new idea or concept, proceed with caution. Seek advice from a professional to insure you minimize mistakes. The SBDC can help you facilitate change to grow your business or direct you to a specialized consultant that is tailored for your industry.

-Keith

You can email Keith at:

muddk@uhv.edu