Forget the Crystal Ball: Future-Proof Your Business Using Your AQ

Forget the Crystal Ball: Future-Proof Your Business Using Your AQ                       

By Desiree Grace, Special Projects Consultant

 

Does anybody out there have a crystal ball? A tried-and-true way of forecasting the future? In the movies, a fortune-teller always sees the future using a crystal ball. With the numerous changes on the horizon, especially after the election, we recognize there are also changes we cannot see. In the supply chain, both manufacturer and distributor and rep agents are watching carefully to see what our new president and his team do. One thing we know is that as organizations and professionals, we need to try our best to prepare.

 

One way to plan is to build your Adaptability Quotient, aka your “AQ.” What the heck is AQ? Well, it’s a form of intelligence, part of a three-legged stool, along with IQ (general intelligence) and EQ (emotional intelligence). It is the ability to navigate change. Resilience, curiosity, and flexibility are all components of AQ.  You might think these are inborn qualities, however, these skills can be learned and refined. Let’s talk about HOW to build your AQ and that of your organization.

 

1.      Resilience

a.      Resilience is the ability to bounce back from failures or mistakes quickly. It is also the ability to LEARN from those mistakes. We all know that Thomas Edison made multiple attempts to invent the incandescent lightbulb before finally achieving success. To paraphrase one of his quotes, each attempt was not viewed by Edison as a failure, but rather a learning experience that got him closer to success. If you can cultivate that approach to mistakes, taking some time to learn from them before forging ahead, you are building resilience. You also refuse to throw in the towel after the first two or three errors, you are tenacious and keep trying, albeit in a different manner. It’s also helpful to develop a Plan B, or contingency plan. For example, try a different approach. If you are having delivery problems with your best supplier, cultivate a second source and ensure they take your inquiries seriously. Don’t just give them an order when you have no other option. Find a few projects to collaborate with them and really learn about their capabilities. As a result, they will be much more likely to help you out of a jam without a price premium.

b.      Don’t play the blame game. When something fails, de-brief, analyze, course correct for the future, and move on. The key is to make NEW mistakes and to encourage innovative thinking. If your team knows a mistake is a learning moment instead of a resume-generating event, they will continue to be creative. They will also develop resilience and get back into the game sooner without wasting time on non-productive angst.

2.      Curiosity

a.      Curiosity is really digging into a situation and trying to understand the “WHY” behind it, the Root Cause. For example, what motivated that customer's decision? What are the potential outcomes of your decision? A best-case, worst-case, and mid-case scenario can be modeled to examine potential outcomes and evaluate how you or your organization might respond. It is a good business practice to consider the best and worst-case scenarios and plan how you might respond. What are the second and third steps likely to happen after the first step? Can you consider a long-term outcome, as well as a short-term outcome? Unanticipated consequences often have a long-term impact. Be curious about what those could be. 


b.      Exploring the WHY could lead you to consider a less obvious opportunity. Consider the now-defunct retail video rental store Blockbuster. They turned down an opportunity to partner with Netflix. We all know which company is a survivor in the entertainment industry and which company isn’t. That’s an example of considering the less obvious opportunity. Netflix was not only focused on renting movies, video games, and television series by mail; they pioneered streaming and the subscription business model, while Blockbuster primarily focused on video rental stores. This was very short-sighted. Instead of looking for inspiration all around them, and trying to understand the customer experience, Blockbuster went bust by being myopic. Consider that Artificial Intelligence is an interesting new tool. Explore its capabilities to reach customers in real-time to address real needs. Maybe you are not ready to use AI to replace your marketing team. Instead, consider how AI could augment yourteam. 

c.      An example of this in action in the use of Vending Machines on the factory floor to provide immediate availability of commonly used supplies, such as nuts, bolts, work gloves, and cleaners. Applying the concept of vending machines for quick access to favorite beverages to provide production and maintenance workers with immediate supplies is nothing short of brilliant. This approach minimizes downtime and reduces sourcing time.

3.      Flexibility

a.      Flexibility can be tough to cultivate. It almost requires one to unlearn and intentionally investigate alternative viewpoints and ways of working. CHOOSE an alternative mental model. If you struggle with this, study other cultures, or acknowledge "confirmation bias," the habit of rejecting information that doesn’t conform to your current mindset or opinion. Try taking the opposite view of a given approach. Even try to argue the opposite view. This is often how trial lawyers prepare—they anticipate arguments. Play the role of “Designated Devil’s Advocate” with your team and your own preferred way of doing things. I worked with an engineer once who purposefully shot down any and every first approach from prospective vendors. I did not know it at the time, but he was testing for tenacity, as well as the vendor’s ability to understand HIS business needs and priorities, not just the vendor’s ability to “sell.” This practice of digging deeper to understand will help you build empathy, a vital component of EQ, and help you learn to pivot quickly when a situation requires it. Study what is causing a certain situation or behavior. That small-town mayor who gets cranky before every Town Hall meeting about a proposed solar farm might be afraid that his lack of knowledge on solar power will be exposed and just needs a primer on the topic. This could be your opportunity to educate your stakeholders and customers on newer technologies.

b.      Try placing yourself in the mind of your customer or supplier. A recent mid-sized manufacturing mentee of mine was struggling with how to build a compelling incentive program that would gain mindshare above and beyond her elephantine competitor. I coached her to put herself in the shoes of the distributor, understand their business model and business drivers, and then develop a program centered around their priorities, EBITDA goals, and operating rhythms. Being flexible and not presenting a canned program made a real difference in their relationship and their mutual sales success.

 

The takeaways? If you can anticipate problems and solve them, you can build your adaptability. For example, we now have a greater need for real-time inventory and delivery information. Can we quickly capitalize on that? Reframe problems as opportunities. What kinds of opportunities are you solving for today at work, at home, and in your industry? Rapid changes in our micro and macro-environment are creating opportunities---if you CHOOSE to view it that way. If individuals, organizations, and societies can adapt quickly, they can thrive and survive. Maybe the supply chain could consider new and novel ways to do business, such as forming new partnerships to address customer needs across geographies. A high AQ will help you draw connections and find solutions that are not obvious and will help you grow. Instead of being frustrated and gnashing your teeth, throw away the crystal ball—it never works in real life anyway. Instead, start building a high AQ.



Desiree Grace is an advisor, consultant, and mentor with 30+ years as a senior leader in the electrical
distribution and manufacturing sectors. Desiree leads and supports special projects for River Heights

Consulting. She builds brands, grows revenue and motivates teams, facilitates strategy and execution, and offers special expertise in helping international companies enter the North American market.  Experience with Fortune 100 companies, private start-ups, and mid-market businesses enables Desiree to help a variety of B2B organizations improve market share, revenue, and profits. She is a sought-after speaker for topics such as professional development, sales leadership, industry trends, and team leadership and motivation. You can connect with her at www.linkedin.com/in/desireecgrace.



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