In the past, the development of a single business area would take years. Today the market wipes out whole business models in as little as a few months. This is why it is more important than ever for companies to act quickly and make the right decisions in the VUCA (Volatile, Uncertain, Complex, Ambiguous) world. The following six suggestions can help companies do just that:
1. Keeping Cool
New technologies, a growing number of competitors, stagnating business developments, constantly changing legal standards and cutthroat pricing competition - these are just some of the trends currently threatening a number of companies. The good news is that business often remains stable even in a rapidly changing environment, as consumers seek something - a brand - that they can trust. However, this requires brands to stay true to themselves while constantly innovating. Only then can companies continue to function as a point of orientation and contribute to stability in a volatile environment.
2. Monitoring, Deciding and Informing
The fast pace of change increases the pressure on management to keep an eye on growing complexity and take the right decisions at the right time. One of the central tasks of management is therefore making change and risk subjects of discussion. Decision-makers must be able to recognize the relevant topics among countless changing parameters and base their decisions on them. These topics only become relevant for the organization once it has become clear if and how they should be addressed.
3. Determining Relevance
“Too much trend-chasing leads to the poorhouse.” This is especially true with hectic and reactive moves in business management. Each uncertainty will cost money. This is why chances and risks presented by business models must be examined in detail before such models are implemented. Anything that is relevant to the future of your business represents a challenge that needs to be addressed. Anything that is not relevant does not need to be addressed.
4. Acting at an Early Stage
Relevant topics must be prioritised and addressed or they will pop up again in less convenient moments. Important drivers for the future must be dealt with conceptually - now. It's better to create your own problems than have other people do it for you. If you are in the driver's seat, you are more likely to advance, even in rough terrain.
5. Stabilising Core Business
Despite all these changes, a company should never neglect its core business. After all, the strength of a company is primarily based on its current performance and the way it makes money today. Focusing too much on new business areas can be detrimental to the core business. However, if existing business models are under pressure, change must be brought about quickly, even if a new technology cannibalises an existing one. Those who take on these essential challenges proactively are in the best position to become market leaders with the new technology.
6. Onboarding People
One thing is for sure: the world is constantly becoming more dynamic. It is therefore all the more important ensure that people remain on board. This is why companies have to be increasingly clear in communicating - both internally and externally - what they stand for and where they are heading.In an increasingly complex environment, clients and business partners want to understand what is special about a brand and why it does things the way it does. What is its purpose, what is its story? Answering these questions and effectively communicating the answers is the key role that brand management has to play.