The New Normal

There are times in history when conditions come together to create a large shift in economic, social and technological landscapes: The end of the Civil and second World Wars; the equal rights movement in the ’60’s the birth of the .com boom of the late ‘90s; and more recently the shift in the US political base come to mind. Although not always seen, what happens outside the walls of a business affects what goes on inside. To survive and thrive during these great times of change, leaders and their companies need to have their eyes and ears wide open to the trends affecting their businesses. 

Today, we are experiencing several large shifts at the same time.   For the next 19 years, 10,000 Baby Boomers will reach retirement age every day, turning most of them into savers instead of spenders.  Since 70% of our GNP is the result of consumer spending, this will most likely dampen economic growth over this period.  It is anticipated that this will put greater pressure on companies to grow their revenues and/or reduce their expenses to maintain profit growth – basically forcing them to do more with less.  Additionally, a growing minority population, concerns over the environment, and a shift away from conservative to liberal views is changing what customers want and how they decide to express their brand and company loyalty.  Further, digital influence is opening up new markets and new ways to hire and develop employees as well as engage customers.  This new chapter in the story of the US marketplace is expected to last for at least the next decade, if not longer.  

This “New Normal” is defined by five major challenges affecting leaders and their companies today: Maintaining worker productivity; adjusting to the changed economic environment; maintaining and increasing profit margins; adjusting to shifts in the culture; building tomorrow’s workforce.  (To get the full white paper go to www.mfiblog.blogspot.com). 

Many organizations typically falter and fail when there is such a significant seismic shift on how things get done.  Those that understand the changes and adapt can thrive (such as the story of Google and Microsoft), while those that don’t can fail.

We can look to the past and see examples of leaders and their companies undergoing great transformation through adversity. 

When Steve Jobs returned to Apple in 1997 to rescue it from near bankruptcy the company was producing a random array of computers and peripherals including a dozen different versions of the Macintosh.  Microsoft, Dell, IBM and others flooded the market, making consumers hungry for something new and exciting. Biographer Walter Isaacson shares the time when Jobs told his team to focus on only four products, and to cancel the rest.  “… by getting Apple to focus on making just four computers, he saved the company”, said Isaacson.

With heightened awareness and a disciplined approach to setting and implementing strategies, leaders can address how their organizations can successfully adapt to the changed marketplace, and maintain high levels of engagement with both their employees and customers.  

Dean Newlund is president of Mission Facilitators International, Inc., and can be reached at www.missionfacilitators.com.