Organisational Development #1

Where do I start?

It is with some trepidation that I commence writing this.

Inevitably there will be people who disagree or who know better than me – either actually or in their own opinion.

I need to acknowledge right at the start that I am not an “expert” – in fact I run screaming if anyone ever tries to describe me as such.  Having said this, I have observed, discussed, listened assiduously and read widely on many business related issues and until recently I was a partner in a well known business which has enjoyed modest success in the areas of adventure based training and development, ropes course construction and inspection as well as corporate consultancy and leadership development.

Now I am setting out on a new adventure – I am starting a number of new businesses which will play in the same market but do things in a quite different way.  The issue of organisation development is highly relevant to me right now, both professionally and personally as I launch  new businesses which will work with businesses on business issues!

Starting out – where do I start?

Probably with the aspiring entrepreneur.

Some questions to ask:

How comfortable am I with risk?

For answers to this question, look at the way you live life – how you recreate, what looks like fun and what does not.  Where do you put your savings?  How necessary is it to you to have predictability and control of situations, things and people? Risk in business is an interesting thing, there is no such thing as a risk free business – all businesses are exposed to risk – some more than others and some because of the decisions made by the business owners. Risk appetite is a tricky thing, too much risk appetite and you may “bite off more than you can chew” or make poor decisions that expose the business, too little and you may well be stressed beyond reason in a short while or fail to act decisively when opportunities appear.  Be aware of your own position in relation to risk and actively manage yourself to somewhere appropriate.  You may even need to seek support and advice from others – maybe professionals like accountants and solicitors  and/or engage with mentor/s who can help you with reality checks.

How do I support myself while the business gets going?

When I did some research, it appears that in Australia 60% of small businesses shut down in their first 3 years of operation.  The most common reason is shortage of money. Generally speaking, customers are not waiting to fling themselves through your doors!  Compelling though your offering may be, it takes time for potential customers to become paying customers – can you meet your financial needs during that time?  Certainly in the adventure field I have seen players come and go – some of them in less than a year and some in a slow and painful spiral of decline that ends in tears.

Is there a market for what I am selling; and who are the currently successful players?  How are they doing it?

A mistake that I have made in the past, and that I see many others making, is decrying one’s competition.  Hell, they are in the market and playing with some degree of success.  Learn as much as you possibly can from your competition: look hard at what they are doing  right as well as what they are doing wrong.  Capture the rights in your own approach and remedy the wrongs.  Keep your eyes open and don’t fall for the reassuring trap of just seeing all their faults and failings. Complacency is risky for any business in any way at any time!

What does “success” look like?

Lots of businesses are out there “just doing it” – getting by day to day, month to month feeding the owners and staying alive; and that’s fine for some.  However, having a vision and striving to achieve it really can transform what’s mundane and pedestrian into something exciting and meaningful for all the players: not just the business owners, but for everyone who works in and for the business.  Get it right and it may even inspire customers!  Regardless of whether you have a vison or not, and we will revisit this later; setting realistic targets and goals can be a great way of staying motivated and of keeping people accountable.

How do we want to operate – how do we make decisions on important matters?

While financial imperatives are important, the outdoors culture appears to be driven by values apart from simple profit.  Most of the players in the outdoors with whom I have interacted appear to be driven by more than a simple desire to make money (although to stay in business you have to!).  So, in a values driven environment – what’s your organisation telling the world about its values.  How do people decide whether they wish to engage with your organisation – as employees, as sub-contractors, as customers even?  What do you hold yourselves and your employees to? What is the basis for your strategic and tactical decisions?  Again, we will revisit this matter, but organisational values are important. In the words of John Mellencamp: “You gotta stand for something, or you’ll fall for anything.”

On reflection, these are probably good questions for existing businesses to ask, and could lead to some exciting and productive change within the business.  I have realised over the years that it’s almost impossible to stand still as a business – either we are going forward or we are going backwards – standing still, comfortable as it may be, is seldom an option.

Enough for now.  This is the first of 4 articles. Let’s see where we can go with this!

Andrew Murray
Applied Adventure
andrew.murray@applied-adventure.com.au
0427 740 642