Every journey has its obstacles and challenges, and the world of business is no exception. These hurdles come in various shapes and sizes, often leading to sleepless nights filled with self-doubt. Throughout my career, one lesson has consistently emerged: these moments are temporary and rich with opportunities for learning. As I reflect on the past year, it becomes clear that focus and perseverance are the keys to overcoming these challenges.
I take the swings of business life personally. It’s during “low” periods that I question myself most. Questions like: “What am I doing right?; or What can I do better?” When this happens, I’m fortunate to have a fantastic team around me (They are the actual reason for Red Rocket Creative’s success and give me the ability to focus when challenges arise). They have valuable opinions and see the business in ways that I may not. Involving them in business strategy decision-making provides fresh perspectives and clarity for me. That way, I can take the constant burden off my shoulders and enjoy.
In the ever-evolving world of business, change is the only constant. I frequently ask myself, “What type of change is on the horizon?” Currently, the conversation is dominated by artificial intelligence (AI). While AI is undoubtedly a disruptor, it’s not the sole factor influencing businesses today. There are fundamental principles that must be adhered to in order to thrive. AI may be the “shiny new thing” capturing attention, but many leaders risk losing sight of their industry and their role within it by trying to outsmart the market.
This year, my learnings have been shaped by observing larger companies making unusual decisions:
As someone fascinated by brands, these high-profile stories are particularly noteworthy. Despite having brilliant minds at both organizations, leadership decisions reflect a hubris that led to misguided attempts at growth, often altering their fundamental business models. This nudges me to reflect on Red Rocket Creative and the services we provide to our world-class clients. Our clients rely on us to stay informed about new technologies and trends, and to incorporate those insights into our discussions and recommendations. Our mandate is to promote the brand and enhance interactions with our clients’ customers. No doubt, AI needs to be a part of these conversations, but it must be viewed through the lens of a company’s purpose.
Reflecting on the past year, here are the lessons I’ve learned:
In the case of Nike, the company is a world-leading product manufacturer that prides itself on demonstrating its greatness. Who doesn’t love visiting a store to compare how a Nike product measures up against the competition? Nike’s leadership decided to throw that away and pursue a direct-to-consumer model. They believed competing with Amazon was the best approach. Nike discarded their channel partners, clients and brand equity in the process. The competition was waiting on the sidelines and happily filled the void.
What’s the takeaway? Be acutely aware of your core competencies. This foundation will guide your decisions
Not in general, broad-stroke terms, but in a detailed way that genuinely understands the personas. Lululemon had this down to an art form.
What’s the takeaway? A deep understanding of your customers shapes your messaging, aligns with your offerings, targets the right media channels, and delivers the expected experience. Never lose sight of this. Clients are your reason for being.
You are not everything to everyone. Starbucks’ hubris led them to charge premiums for simple (non-material) costs, such as oat milk. Starbucks became too expensive, and its sales cycle was too cumbersome. It’s coffee after all. How complex is that to deliver? It turns out to be very complex.
What’s the takeaway? Give your clients what they want, without extracting every penny from their wallet. By building loyalty, you’ll get a larger share of your clients’ long-term spending.
If you are changing your offering, do the homework to ensure it is in the right direction to take the business. Gather your people, especially those with opposing views, and discuss thoroughly, do the analysis, and get it right.
What’s the takeaway? Running models is easier than ever, and don’t think you’re smarter than the market. Most of us are not. Greatness can be had by truly understanding what you do.
These are the same business principles you used to start your business, no matter what size you have become. Growth requires goal, perseverance and focus.
There is a responsibility that comes with leading a company. It’s a burden and a curse, but one that needs to be worn with pride. Your decisions can significantly impact the livelihood of your team, and if they are as high-performing as mine, then you need to treat them like gold. If you continue to do that, you’ll be well-positioned to embrace the changes that your business sees coming.