From Magic Johnson at the International Builder Show opening ceremonies.
“Don’t assume you will continue to stay the best. Sometimes we need to go back, refocus, adjust and pivot. Re-evaluate our process, our projections, our teams, our goals. Sometimes you have to change to become better. Sometimes it takes the failures and tough times to push us to change, re-evaluate and push forward.”
What amazing and inspiring words from Magic Johnson this morning. Sometimes we can be lulled into thinking we are better than our competitors. We are good at what we do and our margins will remain high. It might not really be arrogance but it is pretty close. We all need to remember that not too many years ago, the Great Recession of 2007-2012, was somewhat catastrophic. Did we forget how bad it was already?
Magic Johnson reminded us this morning to remain humble and brutally honest as well as realistic. Don’t forget to look at your numbers again. Look at your margins and overhead. Look at current trends or changes in the world and spend a few minutes unpacking how it might impact this year or next year. Is there anything you need to change or do different? Do you need to adjust or pivot? Don’t fall into Phase 3 of Company Death. Denying risk or warning signs around us. In his book How the Mighty Fall, Jim Collins takes us through the Five Stages of company decline or death.
Phase 1. Hubris Born of Success -we are successful because we are awesome and we are arrogantly confident this will continue.
Phase 2. Undisciplined Pursuit of More – we are so good we need to grow. We need acquire and absorb smaller companies. We need to increase production. We need to do whatever it takes to get more market share at any cost.
Phase 3. Denial of Risk and Peril – it won’t happen to us. Those statistics don’t apply to us. Ignoring the news or changes in the market place.
Phase 4. Grasping for Salvation – finally realizing we are in trouble and reacting with all kinds of ideas and business initiatives to try to save our business. Maybe even things we have never done before. Outside of our Core focus.
Phase 5. Capitulation to Irrelevance or Death – we lose traction and market share, business falls way off and we become an irrelevant organization or we sell the company or close the doors.
We can do this! We can change if needed. We can adjust and maybe do things a little different. And, we can crush 2022 with our best year ever! Amen!
https://www.jimcollins.com/books/how-the-mighty-fall.html