The Risk of Constant Change

Change is sometimes unavoidable and necessary yet not always the best thing. While it can be good, the risk of constant change is something to consider.

A Personal Perspective

While I can’t prove it observation leads me to believe that most people don’t really like change. That is completely understandable as it change requires us to get outside of our comfort zone and involves an element of the unknown. Actually I’m one of those people who like change. Maybe it’s because I recognize that it is essential to progress. However, those of us who like a lot of change need to be wary of the tendency to create change when none is warranted.

Weigh the Risk

Imagine you are evaluating your product and service offerings and as a part of that process you are also analyzing your competitors’ offerings. There can be a sense of panic that sets in when you see them offering new things that you are lacking. You may suddenly feel the urge to jump on the bandwagon and add the same products and services in your effort to remain competitive. This can be an ongoing and seemingly unending process. STOP. Before you do anything, weigh the risk of constant change. Will these additions to your offerings actually add value? Will they create a burden in operating your business that is not warranted by the actual return you will realize? Have you even considered if these additional products and services are really helping your competitors?

What Do You Do Best?

Taking the example above, think about what you do best. Say for example your company is involved in heating and air conditioning installation and service, known as HVAC. Now if you look at what your “so-called” competitors are offering you may see that they offer brands that you don’t and they may have service plans that seem very compelling and like something you need to offer. But, just pause for a moment and consider just what your company does best. Perhaps you are a small company that really specializes in getting people’s existing systems serviced at a fair price and allowing them to postpose replacement. If that is the case it is also likely that the customers you deal with are also going to be doing more bargain-shopping when they do need to replace a unit. So, with that in mind, those fancier units that your competitors sell may not be something your customers would really consider. Who says your company has to get big and meet the needs and wants of every customer out there? It may be that you have a nice little niche market that the big guys are not interested in serving. The same may go for the maintenance plans they offer. Perhaps your customers, should they want a service plan, desire something less extensive.

Now Here is the Risk

If you are constantly changing in an effort to match what others are offering, you aren’t grasping the risk of constant change and as a result risk damaging your niche by trying to be something you aren’t and that your customers do not desire.

So think about it whenever you feel the urge to make changes. Will it be worth it and will it really represent progress? In other words, make changes but just make sure they are the right ones at the right time.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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