Assume you’ve fallen into a raging river, surrounded by water. Your head could fall out at any moment, and to make matters worse, a waterfall is approaching. How long do you think you’d endure if you didn’t rev up your arms and legs and tilt your body toward the ground? Unfortunately, that’s what it’s like to be a global corporate leader these days. We can be washed away and forgotten if we don’t swim and put in some effort if we don’t modify what we’re doing and shift course. So, what’s going to build our muscles and make us the best swimmers in our respective industries? Making effective use of our core capabilities will irrefutably help us.
To successfully evade getting washed away, here are the four strategies that you could follow to save your boat.
Core talents are the most important skills that your company uses and rely on for efficiency and a positive reputation. Core competencies define your company’s strength and are “not simply copied by other businesses, whether established competitors or new entrants into the market.” Branding is an example of a fundamental competence because, when done correctly, customers can connect with and buy what you sell, even if your items could be better. Similarly, rather than merely selling cars, if you’re in the automotive industry, one of your main strengths could be logistics.
Most of the time, your organisation already possesses the fundamental talents it requires to transition. However, leaders frequently have difficulty pivoting and growing because they stop at the tactical level when looking at their firm. So to find out what your fundamental competencies are, you’ll have to go a little deeper.
Gathering your staff and asking them to write down what they believe the company’s core strengths are is a simple activity that exposes how your team views the organisation and its operations. You’ll be shocked by how little crossover there is. After the process, you may compare the top responses to your original goals, vision, or intent, explain what you actually want, and alter your operations to ensure everyone is working towards the same goal.
- Defining the Role of the Core Capabilities
“What do we currently do with them?” ask yourself once you’ve identified your primary talents. For example, fleet management of commercial cars is one of Merchants Fleet’s primary strengths. Currently, they provide a variety of day-to-day services such as toll collection, fuel delivery, and maintenance.
All fleet management services should be linked to the efficiency, cost-effectiveness, and dependability of commercial vehicles. These services, for example, provide greater driver safety training to help clients comprehend exactly how to move forward. However, because they don’t have to worry about their vehicles or drivers, they can focus on other important aspects of their organisation. Such a mentality is critical to the success of the organisation.
- Understanding the Other Options
This usually entails looking at the capabilities that are connected to or auxiliary to the main capabilities. For example, vehicle purchase and distribution are another of Merchants Fleet’s main competencies. They established agreements with groups that offered summer camps for kids. They would send out roughly 1,500 vans at the start of the summer to transport the youngsters to the camps. When the camps were over, they would have those vans transport the youngsters back to their homes and return the vans to our fleet centres.
We weren’t doing last-mile delivery in the sense that you might conceive of it when you think of Amazon or FedEx. But what does last-mile delivery entail? Last-mile delivery simply means being able to go the extra distance and attempt to over-deliver. Rigidity in the form of doing business is the greatest threat to outperforming your customers’ expectations. You will bottleneck yourself and your business if you don’t attempt to over-deliver.
- Provision of New Services and Capabilities
It doesn’t require extraordinary business acumen to know that attempting to deliver new services and products to existing customers is a good idea. However, the effectiveness of those new strategies can be questioned unless you try them on your current customers. Selling to the existing customers is easier compared to selling new services to new clients. Cross-selling can be a great contributor to gaining higher engagement and customer satisfaction. It can build stronger and long-lasting relationships.
Cross-selling can take a variety of forms. For example, new alternatives could be presented at a quarterly or annual account review meeting, or new services could be pitched at client appreciation events. Sending an invitation email after a buyer makes a purchase, bundling products, or utilising artificial intelligence (AI) to offer additional products automatically on your site are all examples of cross-selling opportunities.
Requirements for SMB Transformation
To successfully implement these strategies, there are a few things that you should take care of and understand.
- Quick Transformation
It’s critical to remember that speed matters when pivoting. You’re regressing if the market is changing at 50 miles per hour, and you’re only going 40. You must be able to outrun the market. However, in order to achieve that level of speed, you must allow people to fail quickly. Don’t get sidetracked by a million things to pursue. Instead, focus on one or two good ideas. Tell the team that you hope one of them succeeds, but it is fine if the other fails. Even if one concept fails, the one that succeeds will demonstrate that investigating is worthwhile.
- Don’t Let Culture Fall Behind
Companies that go through a transformation process based on an assessment of their fundamental capabilities may discover that they are lacking in one or more areas. Then, in order to address that flaw, they go out and try to buy a company that can fill the void. If well-thought-out, this type of rapid fix can work. More often than not, however, when two organisations are brought together, their cultures do not match well. So if something is missing in your organisation, investigate all of your options and choose what is actually best for the firm in the long run, not just what changes things the fastest or appears to be the simplest at the time.