Darwin Was Right

"It's not the strongest of the species...nor the most intelligent that survives.  It is the one most adaptable to change." - Charles Darwin

I'm sure that when Darwin uttered those words he wasn't referring to business.  However, the lesson contained is easily applied to the business world.  It used to be that the number one reason given for a business failing was "mis-management".  That term was much too broad and could refer to a multitude of sins.  So, the new number one reason became "lack of sales".  If one buys into that rationale, how does a business find itself in that predicament, particularly after years of robust sales numbers.  The answer is competition.  With the advent of the internet, virtually every business is exposed to worldwide competition.  Add to that the number of new competitors and competitive platforms that enter the marketplace every year and the impact can be dizzying.  Of course, there are numerous examples throughout history of new competition entering to disrupt a stronghold previously seen as impregnable:  Japanese cars vs. Detroit's Big 3, specialty and discount retailers vs. Sears, and a most recent example, Netflix and Redbox vs. Blockbuster.  If anyone told us early on that those business icons would be in trouble, we would't have believed it, or would have ordered an immediate drug test for those espousing such a view.

The point is that the single biggest reason for businesses failing in today's economy, is their inability or unwillingness to change.  "We're too big, we have a unique product, nobody does it better, it's too expensive" and on and on and on.  Consider this:  "In business today, in a world wide market, you will never again have a long term competitive advantage in product, service or price".  You need to be constantly and continually vigilant of new competitve thrusts and adapt and change quickly to survive.  If you don't, you may wake up some day and find yourself on the verge of bankruptcy or failure.  Peter Drucker said this years ago, but it is even more applicable now:

"There are three kinds of companies today:

Those who make it happen;

Those who watch it happen;

Those who wonder what happened."

Another important piece of advice comes from former General Electric CEO, Jack Welch:

"Change before you have to."

Start today to really examine your business and determine how you need to change to stay successful, become more successful and avoid failure.