Tipping The Change . . .
By Director Wayne Hall

April 30, 2009

There’s no denying that the economy is in poor shape at the moment . . . but if my recent experiences are anything to go by, at least there is a lot of healthy analysis taking place, both at the individual and organisational level.

 

(and no doubt the two are related, with the change in market conditions triggering the self analysis).

 

During the past few weeks I have walked away from conversations with staff, partners, clients, suppliers and competitors feeling as excited as ever about our industry. Sure, it’s going to be tough, but there’s a creative, refreshing - even dynamic - attitude prevailing in many areas. We’ve been pushed out of our comfort zone and into a “how do we make this work” zone.

 

And I suspect that it’s a good thing . . . I also suspect it has a lot to do with “tipping points”.

 

At the general level we talk about “changing markets”. Put like that is sounds OK . . . even pretty harmless. But the reality for business (and individuals) in the current climate is that - with a few exceptions - sales are falling and so are margins, so there is a lot less money around (I still haven’t worked out where it goes, but that’s another discussion). It doesn’t take too long before many of us start to feel some pressure, while at the very least we are all talking about the “difficult times” we face. What’s more, we don’t just know of an iconic business which has recently “gone under”, we know friends and associates who have lost their jobs.

 

This is the climate in which we must make decisions . . . so what is it we seem to be deciding?

 

Well, from my experience, individuals, managers and strategic decision makers generally seem not to be taking the destructive, doom and gloom path*. On the contrary, they are determining that they need to:
- review their approach towards all things (on both the sales and cost side) and find new solutions where feasible
- work out not just what it is that they are good at, but what it is that they enjoy being good at . . . then focus on those things
- “bite the bullet” and find partners and staff who they can trust and who can perform those tasks they have identified as not being part of their core business or role
- and, most importantly, not just feel “warm and fuzzy” about identifying areas for improvement (as we tend to do during the good times), but create a “take action” culture

 

(* it may be that I have managed to associate with positive, progressive people, but that is precisely a big part of my point).

 

During the year we will have highly successful people move on from our business*, and we will form (more) partnerships with businesses - partners and clients - who literally hand us their music programming functions. In all cases we will be celebrating these events as successful outcomes, because in all instances the parties will have worked out - in an environment of open dialogue - that they need to move to a place where it is more likely that what they love doing is aligned with what it is that they will be doing. 
It’s so much easier to be passionate and therefore effective when you are operating on this level - blind loyalty to a place, person, task or responsibility is not a healthy option . . .

 

Put more bluntly, we’ve all had roles we didn’t enjoy. Whatever our position, and without exception, if it goes on for too long it is a detrimental situation for the business and ourselves.

 

Even at a very basic level in this climate, people are changing their habits. During the past few weeks I have bothered (and I don’t use this word lightly) to review and change an internet, credit card and telephone provider, all because they didn’t stand up to some simple relationship tests I put to them. It sounds trite, but I got a huge kick out of taking this action. Why did I bother . . . ? Because I took my own advice . . . take the time to review, provide an opportunity for a response and discussion, than act. This time last year I’d have opened bills . . . cursed providers . . . and done nothing.

 

My tipping point to act in this case was, I think, the combination of an all-pervasive feeling that things are going to get tougher, combined with an attitude and example setting from people I associate with (and which has rubbed off) that we “better get in and fix things before it’s too late”. Regardless, something tipped me that wasn’t there before . . . and I’m glad it did.

 

'So what has all this got to do with music services?

 

I can’t say for sure, but I’m guessing that if our industry supply chain - artists, Record labels, Associations, music content providers, manufacturers, operators and clients - are willing (or forced) to review their products and services in terms of their value-propositions, then we will all be better off.

 

Within our own business - both as a collective and at the individual level - it will mean that we will continue to focus on (and be passionate about) those services we are great at providing (and outsourcing those we are not), which in turn will ensure we maintain and grow a healthy business.

 

At the very least - as one associate put it to me recently after reviewing his operations following a dramatic fall in sales - “you find out a hell of a lot about the business you’ve been running . . . and there’s quite a bit there needing some change”.

 

And that’s a good thing . . .

 

(*mentioning that staff may be moving on from your business is often viewed as a taboo subject - we all know it but don’t mention it. What we have found at SBA is that if people are encouraged to discuss their “next career steps” openly - within or without of the business - then they are more likely to focus on their work and perform it well).

 


Wayne Hall
Director

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