Have you ever wondered what is “Change” and how to see change in your business? To answer this question we must first understand how change is defined and then see how that manifests itself in a business model.
Change, as defined by Webster’s dictionary, is to make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone; to transform or convert; to substitute another or others for; exchange for something else, usually of the same kind. To change is to alter the current state.
When brought down to the fundamental level of change, three states exist working in combination with another; maintain or extend further the current offering, add other products or services and finally, remove products and services. The outcome is clear, the effect from change produces one of three conditions to a business offering, at least from the customer stand point; you can either refine, revalue (re-engineer the value) or reinvent the offering.
Enter the Change Triad. The illustration above demonstrates the process. By selecting two of the three options available, a business owner can decide the course of change. Pick two for change. Sounds like a campaign slogan, but it is true. Take a look at the process. To make something different you must do something other than stay static, you must add or remove something from the current state.
Take your offering and extend it forward, now add something new to the mix and you effectively revalue your offering for the customer. This is usually the common path of growing businesses. Let’s repeat the same sequence, except this time, rather than add new offerings, we remove some old items. Maybe these items are outdated, unused or just didn’t match you customer’s needs. Now the business offering has been refined, eliminating unneeded content or streamlining the business. Sounds all too familiar in these economic times.
The last combination is a more dramatic and harder option to attempt. This is a complete reinvention of your business. By eliminating everything current and replacing it with a completely new offering, you , in essence, have a completely new model. At this point, you might as well change the name too, because you are no longer who you were.
That’s the Change Triad and how change is seen in a business environment.
Okay, by now you may have realized, as the person sitting behind me reading over my shoulder so proudly stated loudly, there is still one more combination. The “All In” option. Yes, opting to do it all to some degree is the fourth and last option. Keep a bit, remove some and add some. By following this option, you have enacted a change that touches all three aspects at some level; refine, reinvent and re-engineer the value. This type of change, when done correctly, is evolution and should be done with the customer in mind to ensure success.
So when you state you are going to change your business offering, decide if it is for refinement, adjusting the value proposition, reinventing the offering, or, as my new-found vocal editor states, going all in to evolve the offering. Decide first which is the best option and plan your change in every detail. Be proactive and guide your change and never let change guide you.
That’s how I see it and now I hope I’ve helped.