What If Chicken Little Was Right? Be Prepared.
Oct 5th, 2009 by David Svet
I met with a client the other day that was doing everything right. They had a laser like focus on their market. They had effectively positioned themselves in a leadership role. Their marketing was personal, relevant, compelling, and even cost effective. They were getting great results and making lots of money. Their life was all rainbows and unicorns. Then, poof, they woke up one day and the market had completely changed. Everything that they had done right no longer worked. Just like that the market had vaporized.
Believe it or not, I see this all the time. Every time a new technology comes along to replace an existing system a profession becomes history. When a market becomes so hot that a bubble forms and everyone is focused on the one best way to make easy money a lot of companies are surprised when the bubble bursts. Sometimes a law changes, sometimes a source dries up, and sometimes people just change their minds. Inevitably, it’s a big surprise to someone.
So, what do you do when you’ve done everything right, except contingency planning, and you still end up losing? I don’t recommend doing what a bunch of my client’s competitors did — close down. Yes, they either panicked or decided to take the money and walk away. While this is obviously a viable option, what happens if you’re not ready to hang it up?
First, don’t panic. This company had a whole lot of good things happening that were all a result of their intelligence and effort.
Second, reassess your asset base. They are winners and the competition just got a whole lot smaller. They know how to market and sell. They have a solid infrastructure. It just needs a new target.
Third, evaluate the market. Is it really gone? In this case, yes, and it isn’t coming back. But, the world didn’t stop. There are other markets. So, tap into the flow of money. In The Influence of Affluence by Russ Allen Prince and Lewis Schiff they give the great advice to go where the money is.
Finally, concentrate your assets and energy where it will have the greatest impact. If you fell down, get up, quickly. Reposition your firm to lead in the new market. It’s actually an ideal opportunity to start over without making the mistakes you made last time.
I’ve seen dozens of companies go through this scenario and come out in much better shape on the other side. Sure, some don’t make it. It hurts when you trip and scrape your knees. It’s humiliating when you didn’t see it coming. It’s surprising when it’s not your fault. But it’s devastating if you let it beat you.
You don’t have to let that happen. Channel your inner Boy Scout — Be Prepared.
Image (public domain) National Geographic Magazine, Volume 31 (1917), page 359.
I couldn’t have said it any better. I truly enjoyed reading your article. My motto is, “when one door closes, another one opens”
***Love
Peace 
Prosperity :)***
now if chicken little WERE right (subjunctive, dude - picky, picky eh?
then the various scenarios you describe are probably accurate. although the one thing which caught me is this: “Every time a new technology comes along to replace an existing system a profession becomes history.” i must say that’s a rather sweeping statement, even though historically we do see examples where technology has appeared to “replace” a certain system for a better, more efficient one. but does such “replacement” necessarily make a profession history? not in all cases. if i may constructively add to the discussion, i think MarCom folks like us should not only make it a point of being knowledgeable about emerging technologies that impact business but also attempt to offer value to colleagues, clients, prospects and the like so as to assist those who are self-professed technophobes in whatever difficult system-related transition they are experiencing. i for one, prefer to view the advancement of technology as an aggregated process wherein not one system is being replaced, but rather it is being enhanced (either as an upgraded version or an add-on). the reality DOES involve a form of replacing, but that reality rests with the the technology NOT with the users using it. our choice of words in how we portray the staggering pace of social change along with its respective techonologies must aim to inspire others to want to learn and explore..not panic and run. i know YOU get that..just thought i’d add it in (in case the sky does cave in after i hit “submit comment 
as always, thanks for the share Dave - Autom