Running a successful business involves having a solid plan and sticking to it, but reality can sometimes throw a curveball. That’s okay. The key is to be flexible and adapt to changes.
There are three main reasons for disruptions in business: changes in customer needs, competition from other companies, and market fluctuations. To overcome these challenges, you need to be constantly improving, innovating, and adapting. There are two ways to approach this: a tactical performance, where you stick to your plan, and an adaptive performance, where you embrace new ideas and deviations from the plan.
Having a mix of both tactical and adaptive performance can lead to a more balanced and effective business. Traditional incentives like bonuses and promotions based on meeting goals can stifle creativity and innovation. A better approach is to focus on data acquisition, analysis, and learning, and encourage employees to be creative and find new solutions.
By having a strong tactical plan as the backbone of the business, and incorporating an adaptive structure, you can achieve happier customers, employees, and increased profits.