Over the last month I have worked with two organisations that have fallen into this category.
The first has developed a great product and process around it. They are still evolving it and developing it. Twelve months ago they picked up their first client. A very large organisation that has fed them a substantial amount of work – more than they could have imagined. 12 months later they still have the one client who is suddenly winding back the amount of work being passed on. And guess what. They still just have the one client and panic is creeping in.
The second business wasat the cutting edge of its industry 12 years ago. Their product was second to none, they were seen as the market leader and had a client base everyone else was envious of. They tweaked at the edges with a few product changes here and there. They added the occasional client, and revenue grew as their existing customers grew. And they got comfortable.
Both businesses had done enough to feel successful and the cash flowing in had allowed them to relax. They had crashed through the start up phase and were multi-million dollar businesses with initial profitability at levels that made everyone smile.
And that is where the problem was. They had become blinded by their own success.
We all know that if we stand still we are really going backwards as everyone else walks past us.
We need to be on the front foot with product development.
“The Alchemy of Growth” (Baghai, Coley, White ) spells out the Three Horizons Model that helps us keep our eyes on the present while also acknowledging the need to be looking to the future.
It recognises the need for incremental innovation in what we are currently doing while also providing a framework for future growth.
Horizon 1 – is about extending and defending your core business. The focus is on operational improvements for short term performance.
Horizon 2 – is about bringing ideas to fruition and building emerging businesses.
Horizon 3 – is about creating viable options for future businesses.
Without a strategy in place to do this we risk being left behind and joining the long list of great organisations that no longer exist.
Backing all of this up is the need to stay close to your clients. In doing this you will be getting their insights into the future as well as their reflection on your current performance.
If you are doing a good job they should also be introducing you to others and helping you grow your client base. It is not enough to sit tight on an existing client base. Some of them will fail and others potentially outgrow you.
Current success is great but it is not the destination.
Are you riding the wave of your short term success and risk being left behind in the future?