Navigating the rapids

Staying afloat in a turbulent business environment 

The recent headlines about the so-called demise of Research in Motion (RIM) may seem like an exaggeration for a company with such a strong financial position. Nonetheless, the company continues to ride the rapids with investors. RIM stock price dropped rapidly earlier this month after a weak earnings report and billions of the company's market value has been lost.

The warning signs seemed clear to many outsiders as the Apple and Android operating systems have steadily increased smartphone market share in the United States. RIM was still riding high with solid revenue from their big corporate clients and high expectations for the PlayBook tablet that launched earlier this spring, but turbulence has taken hold. The overnight drop was many months in the making; the company either did not see the risks or simply could not react in time.

From a food and agriculture standpoint, it can be tempting to dismiss this kind of rapid business change as unlikely. Well...maybe.  

Take for example the proposed changes to the Canadian Wheat Board (CWB) announced in early May by Canadian Agriculture Minister Gerry Ritz. While the debate is far from over, the writing on the wall seems clear that major change is coming to Western Canada grain markets and it's coming faster than many predicted, says Rob Hannam, President of Synthesis Agri-Food Network. "Some, like grain handling giant Viterra, seem well prepared and eager for the CWB monopoly to end," he says. "On the other hand, I am sure there are many boardrooms filled with managers scrambling to determine the implications of this seemingly overnight change that was five years in the making."

So how do you manage for the future and avoid rough waters in your business? "If you continually scan the marketplace trends, the government policy environment and new technology research, you have a much better chance to read the warning signs and adjust so that you can navigate the rapids when they occur," advises Hannam.

While scanning and planning is commonplace in most large organizations, many small and medium enterprises (SME) are so busy managing the day-to-day business, they don't always dedicate enough time to properly analyzing what the future might hold. SMEs can actually use their size and agility to their advantage in these situations.

Insights

Adapt to the fast pace of change. The speed of change in today's business environment, due in large part to telecommunications and rapid new technology development, is increasing with no signs of slowing down. Business planning must be undertaken more than just annually and reaction time must decrease to match this new fast paced world.

Separate fundamental from incidental. Continually scan the factors in the business environment, whether opportunities or threats, that might impact your business or sector. But don't get overwhelmed by the mass of information that is available on-demand. Separate what is fundamental to the future of your business from what is interesting, but incidental.

Adopt early to stay ahead. While it may feel more comfortable to delay making changes until the future is clear, in today's fast paced environment, you'll be taking on more risk by standing still. Many successful companies act early in order to stay ahead of the curve. These companies try to gain a competitive edge by anticipating future customer needs or competitive situations. And remember, often the most successful manager is the one who can make the best decision on the least amount of information in the shortest amount of time.