Charles Darwin published compelling scientific evidence on species that became extinct because of mal-adaptation or resistance to change.
Its intriguing to discover in today’s business world, that most businesses making waves didn’t exist more than a couple of decades ago. In the same vein, many large organisations of the past, are today extinct or too flaccid to make significant impact. Change is the common theme here. It is so fundamental to all things in the world, that it’s the most important obstacle to overcome in a game of survival of the fittest. It is constant for all times.
The theories of Darwin are just as applicable to the business world as to the natural world. Survival of the fittest is about adaptability to a changing environment and new competitive realities. The challenge is to adapt — or die. The financial services industry has experienced a number of significant changes over the years, and with the proposed FOFA reforms, this change is set to become more dynamic
Some business owners however have a hard time adjusting to change and are reluctant in adapting to new regulatory environments, new technology, or even new internal changes needed for future growth. I have had the opportunity to observe business owners who are reluctant to change and afraid of the challenges it poses. Many have accelerated their exit plans in the face of significant changes our industry is experiencing.
On the other side of the equation are those dynamic businesses who have embraced change. Welcoming trend shifts, positioning the business to stay on top of them, and striving to remain ahead of the competition are all functions of adaptation to change.
Practices exhibiting these functions can position themselves well to evolve with the industry now and into the future. Typically these businesses exhibit a number of similar traits. These include a clear understanding of their ideal clients, well defined value propositions, client engagement and service models, robust systems and processes.
While one can insure one’s life or take out income protection, one cannot insure their business for the risks of a changing business landscape. Instead, they must adapt and continue to be relevant and accessible to their ideal customers. As a business owner, one should ensure they are responding quickly to the social, political, environmental and technological changes that can affect their asset. Those that do find this challenging, should engage the external resources available to them so as to ensure the evolutionary process continues.
Blog by Simon Backman 