Today I want to share a cautionary tale with you, so you can learn from the experiences of others...
Adapt to the market and thrive!
Been there, done that
The Dotcom implosion and the 2008 financial collapse had a drastic effect on professional services organizations, no matter how well-run. Many firms failed because they weren’t prepared to weather a storm of that duration or they couldn’t adapt to the new markets.
There are lots of reason for optimism this time compared to the previous contractions. Inflation is cooling, the unrest in Ukraine doesn’t seem contagious, and US spending in manufacturing and health care are rising dramatically. Plenty of firms are struggling though. Why?
Who moved my cheese?
The majority of firms are struggling to adapt to a world that isn’t buying what they can deliver. As customers migrate spending from growth to efficiency, firms that cannot pivot their services and sales will continue to struggle. Spending on process-oriented services like Agile, Product, and similar services (which are designed to improve speed) have been trimmed, as have budgets for marketing and e-commerce. The ability to support “keep the lights on” activities through automation are getting lots of attention.
Some firms are growing
Many firms I work with are thriving, because they chose to pay attention to the changes and prepared their organizations for change. They’ve pivoted toward services that support efficiency rather than growth, and allow their clients to thrive on reduced budgets. Necessary spending on security and cloud migration continues to increase.
What about you?
How is your firm adapting to the changes in your markets? Are delivery leaders and sales leaders aligning on how to create value that customers will buy?
I’d love to help your firm adapt to the market conditions it’s facing. Leave a comment below or contact me for a free consultation. I look forward to hearing from you!