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posted by Kevin Smith Mar 23,2016 @ 05:29PM

Your Core Business is not Enough

If work seems more difficult than ever, you are not alone. So many businesses are at a breaking point. Culprits often include a vicious combination of technology, commoditization and sustainability. Competition’s newest cure is to refine your business model. The common truth when rethinking how to best compete is this: Whatever business you are in, your core business is not enough.

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I’ve seen this new business reality drive mergers and acquisitions. It is also changing how companies approach human resources. And both of these shifts are occurring at an increasingly rapid rate. Here are three industries that are feeling the impact in dramatic ways.

The pulp and paper industry is being impacted by technology. A shift in demand is occurring from paper to packaging. The industry is consolidating and mergers and acquisitions abound. Selling papermaking equipment is not enough anymore. The leading players are educating their client’s workforce, servicing the equipment onsite and consulting on optimizing operational efficiency.

Construction services have been commoditized. A study of client with projects greater than $20,000,000 yielded the following insight: “Anybody can build a building.” Specialization used to win business. “Building a hospital? Nobody’s built more than we have” is no longer adequate. The construction companies that can help their clients plan more effectively before construction starts or operate more efficiently after the building has been built will be the winners in 2016 and beyond.

We all know the current economics of healthcare is unsustainable. Today’s hospitals were designed mostly for acute care. Doctors are trained in the science of treating disease. To meet the economic needs of the nation and to effectively care for an aging population, healthcare providers will have to be in the business of keeping people healthy not simply treating them when they are sick. Functional medicine pioneer Dr. Mark Hymen calls this a systems approach to medicine. Hospitals that adopt this philosophy will be in the business of connecting people with a healthier way of life. This is well beyond opening a community wellness center. It is a fundamental shift in mentality.

While some of these pivots are more dramatic than others, none will be easy. Mergers and acquisitions demand structural changes of organizations, cultural integration and strategic shifts in communication. Developing personnel and new product offerings can sometimes present an equally demanding task. If you are feeling overwhelmed you are far from the exception. 

The ideal place to start is by beginning a dialogue with your customers. I recommend scheduling a thirty-minute phone call with a half-dozen customers. Choose people you wish you could replicate as clients. Develop a list of questions that probe how they came to choose you. Try and uncover unmet needs, threats to their business success, and any frustrations they may have. Make the calls or hire someone outside your organization to make them for you.

In doing this, I believe the following will happen. First, you’ll be shocked at how willing people are to share their experience with you. They’ll be flattered you asked and feel valued as a customer. More importantly, you’ll likely be much better informed about how your business needs to evolve. This exercise offers clarity and valuable outside perspective. With clarity, operational and communications shifts are far more palatable.

Topics: Perspectives, Business, Partners

 

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