CHAT BACK : The death of tradition

The great thing about small business and in fact a lot of entrepreneurs is that in most cases, they are able to operate with an almost instinctive understanding of the market.

Generally speaking they will not actively seek to mould their ventures by utilising traditional business models, preferring a more free form operational structure. Hands on, leading from the front, adaptive and reactive strategies form the core of these businesses.

While this works well (and is often done from necessity), business growth can require a more structured approach and investors will almost always demand insight into the business’s operational workings.

Reorganisation might seem like a natural progression into stage two of your business growth and here is the danger. There exists today a dysfunctional mismatch between the traditional business model and current business environment.

Long gone are the days of career development and a lifetime of service to one organisation. Long gone are the “My way or the Highway” CEO’s, organisations that need to wait for an operational decision to filter through multiple levels of middle management can no longer flourish in this type of environment. It has always been the way of the world, with every paradigm shift, some will adapt while others will die like the dinosaurs they have become.

If you have been involved online, or spend anytime using social media tools like linkedIn and twitter, you have probably noticed the proliferation of entrepreneurs, start ups and great innovative businesses; that have risen like the proverbial phoenix from the ashes of the GFC.

There are a number of reasons why this might have occurred but I believe we are witnessing a fundamental shift in business practice brought about by a “Perfect Storm” in the marketplace. The GFC created opportunities for small business and entrepreneurs to fill the gaps left by the larger organisations, allowing them room to carve out new niches.

Mark Johnson, chairman and co-founder of Innosight, is author of Seizing the White Space: Business Model Innovation for Growth and Renewal (Harvard Business Press: February 2010) He discusses this in detail in his book and refers to this practice as disruptive innovation.

Another contributor to the storm is the enabling factor of technology growth and dissemination. New technology is more widely accessible than ever before and this in turn creates an abundance of networking and new business opportunities.

Finally in one of the largest breaks from traditional business structures, we are witnessing the wholesale outsourcing of key projects (not just call centres) to highly skilled businesses and individuals.

The great thing about history is that we can learn from it and evolve; the problem with tradition is that we tend to keep repeating it (even though it makes no sense). Given the choices (and opportunities) in front of us over the next five years, it would be a brave organisation that didn’t choose to break from tradition and embrace the new era.

Article by Davin Broadbent, Beachside Creative.