Reinvent or Die

Globalization, dazzling advances in technology and increased customer demands drive organizational change. To remain competitive, your organization and its people must be willing to adapt, or even completely reinvent, to stay relevant.

As opposed to waiting for the market to force you or your organization to change, why not try leading the change?

For inspiration, keep the following case studies in mind. For over 150 years, these companies have survived a dynamic, competitive market, the ups and downs of business cycles and the whimsical nature of customers. In an economy of constant change, they’ve figured out where they need to be next and how to get there.

In 1850, American Express began as an express mover of goods, securities and currency throughout New York state. Realizing that it was difficult for people to obtain cash outside of their immediate banking area, American Express introduced large scale travelers’ checks in 1891, and, in 1958, began issuing travel charge cards.

The first cards were merely pieces of paper with the cardholder’s name and account number printed on them. Noticing the increasing profits from the charge cards, American Express introduced the Gold Card (1966) and the Platinum Card (1984) to targeted audiences who were willing to pay fees for the premium service associated with the cards.

While American Express completely changed their strategic direction to stay relevant, Levi Strauss & Co’s strategic direction has stayed relatively the same over the past 150 years. The key to Levi Strauss & Co’s success was that their product’s marketing, positioning and fashion sense has been almost intuitive, keeping their denim flying off store mannequins long after Mr. Strauss ran the company.

Levi Strauss began producing denim overalls in the 1870’s, then created jeans designed for cowboys, lumberjacks and rail workers in the 1920’s. This jean design was eventually adapted to attract the greasers of the 1950’s and a great portion of the world has not dreamed of parting with their Levi’s since.

Despite facing stiff competition from overseas and a decade of declining sales, Levi’s jeans are still a strong presence in the world market. Although Levi Strauss & Co claims that their popular “Shrink-to-fit 501s” are still made from the original, unaltered design, they have clearly figured out how to stay in existence through decades of fashion and competitive market conditions.

Another company that is a regular part of consumer’s lives more than a century after it was founded is Macy’s, which opened in Massachusetts in 1843. Between 1843 and 1855, Rowland Hussey Macy opened four retail dry goods stores. They all failed, but he learned from his mistake: he was not operating in a prime location.

To rectify his past mistakes, Macy moved to New York City and established R.H. Macy Dry Goods on Sixth Avenue in 1858. It was there that Macy’s flourished through insightful business and marketing moves such as displaying themed exhibits, lighting window displays and offering customers a money back guarantee to ensure their satisfaction. It wasn’t until 1983 that Macy’s began opening stores outside of New York. In 1994 they merged with Federated Department Stores and in 2005, Macy’s acquired the May Department Stores, giving them a commanding presence in markets across America.

All three of these companies, along with other giants like McDonalds, Hewlett-Packard and IBM are classic examples of companies that have been able to reinvent themselves over and over again to ensure their survival.

Whether you are a CEO or a front-line employee, look to the future, challenge yourself to think beyond what’s working now, and anticipate what will be needed to ensure your company’s success and your job security.

In some cases, this may even mean eliminating a product line. For example, Nokia recently made the bold decision to eliminate the operating system that made them the leader in the cellular business and move to Microsoft Mobile Network.

In other cases, inventing an entirely new product which may have little to do with your original business may be necessary. This will require that you anticipate your competitor’s next move and respond in a way that is both timely and accurate to the market’s need.

Considering the pace of today’s market, you will need to think beyond today and accurately anticipate what will be needed to not only survive, but to thrive in the world that is constantly evolving. A daunting challenge? You’re right, but predicting the future and getting it right is what makes work so much fun.