Have you ever thought about the stories behind the great retail businesses you see? Many people think great organisations are often overnight successes with outstanding facilities and teams to make it happen. I can assure you that very few great retail businesses get to where they are now without persistence. Their transformations come from persistently and consistently building their retail empires for many years.
With so many Australian retail companies clueless to the fact that fads and gimmicks rarely work to jump-start their success, it’s no wonder they fail miserably in business. If you aren’t prepared to put in the time and effort it takes to go from good to great, then you’ll just end up in a cul-de-sac.
Don’t be a doom loop fool
Author on the subject of company growth, Jim Collins discovered during research that good to great transformations never happen in one fell swoop. So why are an alarming number of retail companies taking all kinds of detours in the hope of reaching their desired destination? It makes no sense to me. However, there are a few things that you need to look at.
The doom loop is a concept created by Collins that involves reaction without understanding, new direction, no build-up of momentum, and disappointing results that lead back to reaction without understanding. Think of it as a vicious cycle. You frequently attempt to launch new promotions with great fanfare to motivate your team and fail to produce sustained results because of the underlying problems. Waste of time, right? You bet your last dollar it is – and there’s your doom loop.
When you combine superficial solutions (such as promotions) with no understanding of your underlying issues, the doom loop occurs. Often, short-term solutions that have a temporary impact just end up making the primary problem worse. Don’t be a doom loop fool.
Be a persistent flywheel
Collins uses the metaphor of a flywheel to represent great companies that have momentum. A flywheel requires many small pushes to get it running in the beginning, and with every push, it gradually increases in speed. The breakthrough moment is when the speed begins to work for the organisation. No significant push can be identified as the one big push that makes a good company launch into greatness. Instead, it takes daily persistence and discipline.
The flywheel will only continue to move when your retail company:
- Recruits the right people to help keep pushing
- Engages in Level 5 Leadership
- Understands your Hedgehog Concept
- Stays focused on a disciplined culture
- Faces the brutal facts
- Provokes thought and action
- Refuses to stop the momentum from building slowly
It’s all about every member of your organisation wanting to be on a winning team while contributing to producing sustainable results that keep them motivated and excited because their hard efforts pay off. When your co-workers see that you have a plan developed from understanding, they’re more likely to want to be involved and help you achieve great things over time.
Companies that fall into the doom loop try and skip all the key steps to achieving the breakthrough moment and jump in blind. All quick fixes result in is a forward and backward movement that can’t deliver and last. Ultimately, you need the right people on your bus to begin with and the discipline to follow the flywheel approach to set a path for greatness – and stay on the right track.