There’s an old tale of the hot dog vendor who, anticipating a future economic recession, buys bargain condiments instead of the good stuff. At the next economic downturn, the hot dog vendor buys cheaper hot dog buns instead of ones made fresh today. The hot dog vendor noticed that while there were still customers, the numbers had steadily declined over the past few years. One day, the vendor overheard a customer say to his family, “They sure don’t make these hot dogs like they used to.”
We see the same pattern show up in many entertainment company scenarios: the A-list actress is killed off in season five when her salary got too high, or the theatrical effect is cut because it’s an easy target when cutting costs. The producers may think nobody will notice but that A-list actress secured your original ratings and commercial spot dollars. That theatrical effect is what everyone talked about after they saw your show. Pick your industry.
A tipping point occurs at every company when expansion begins to overpower the original concept that brought the company into existence. Ambitious CEOs add employees around new initiatives, and this organically takes focus away from the actual core business. It’s all well-intentioned, of course. Over time, the company’s day-to-day operations become bloated as new managers come on board and make their mark during expansion.
When growth is too quick, or the next economic downturn occurs, cuts are made across the board, including the original core business. Then, the company’s actual reason for being becomes cloudy as employees, especially those there from the beginning, are confused about the mission, goals, and leadership priorities. Customers are unsure if your products fit their perception anymore. “They sure don’t make their products like they used to.”
We call this “Death by 1,000 cuts.”
”A tipping point occurs at every company when expansion begins to overpower the original concept that brought the company into existence.
When we work with companies, we want to confirm their reason for being: “Clarify the Why.” Then, we dismantle all the complexities and “embellishments” that created bloating over the years – that chapter added to the SOP, or the new policy for employees to try and remember. We help companies create “unembellished operations” to bring back fresh energy like your company first started.
Always keep the core business intact without creating embellishments to that core business. The core business brought your vision into “being” and should be treated as sacred and untouchable. Don’t screw with it! It’s YOUR original hot dog stand! New initiatives to take on? Go for it! Just be sure to treat them like you did your core business – with a focused mission and purpose, unembellished operations, and hiring essential staff integral for long-term success. Better to be focused and deliberate than embellished so you won’t be looking for cuts at the next economic downturn.
The world is changing rapidly and it’s time to implement your company’s pivot to an intentional and focused business model that is everlasting. Restructuring, layoffs, furloughs are a repeated pattern of companies playing an antiquated short-term game versus building a legacy.
