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.
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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