Research Triangle Business Advisors
October 2012 Newsletter
the pending election, you can’t turn on CNN or Fox News without hearing about
the changes impacting small businesses. The biggest challenge facing small
business today is the volatility and unpredictability of change.
newsletter discusses what management can do to mitigate this volatility.
Unpredictability of change
can do about it
Volatility strikes more frequently than in the past.
More than half of the most turbulent quarters over the past 30 years have
occurred during the past decade.
Volatility has increased in intensity.
Volatility in revenue growth, in revenue ranking, and in operating margins have
all more than doubled since the 1960s.
Volatility today persists much longer than in preceding periods.
The average duration of periods of high unpredictability have quadrupled over
the past three decades.
Volatility in media/marketing alternatives.
52% of small businesses use social media, up from 42% last year.
say that the top growth companies show a change management advantage that is
rooted in five capabilities.
–The ability to read and act on change indicators.
ability to experiment rapidly and economically to learn new and better ways
of coping with change.
ability to hire the best personnel and organize in ways that promote
adaptation, including enhancing knowledge flow, diversity, risk taking,
collaboration, and flexibility.
–the ability to harness the diversity and adaptive potential of modern
Management drives the use of new media alternatives – social media,
email, video, blogs, etc.
ability to continuously adapt the business model to changes in the
ecological, social, and economic changes over both the short and long-term.
article is saying is that to be a growth company, the CEO and management team
must focus on working ON the business, not IN the business.
Management should hire good people to work IN the business and get out of
their way, so that management can focus ON dealing with market volatility
and responsive change.
Cary | Raleigh | Research Triangle Park |
Greensboro | North Carolina
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( RTBA ) 2012, All rights reserved.