The Extent to Which Business Is Prepared for the Forces of Change Continues Becoming Even More Critical

By Mwangi Wanjumbi – Newtimes B. S. CEO & Chief Consultant/Trainer

As the Kenya Defense Forces continued their incursions into Somalia, many of us followed each and every piece of writing that reflected their experiences. Personally, I was particularly interested in picking out some elements of military strategy, now commonly applicable to business as well.  There were many interesting lessons that emerged from all the readings.

One of them that seemed quite fascinating is the soldiers’ consistent consolidation of their wins. Thus, they allocated times for building on peace as opposed to full time engagement in battle. That happened through a process of endearing themselves with the local population that occupied any liberated territory. The soldiers provided food aid, medical attention and other necessities in the territories.

It is not clear how this could relate with business strategy. Nevertheless, it comes close to social responsibility extended to people who would otherwise have been hostile.   In the process, marketing of new ideas about peace and leadership, in line with the soldiers’ wishes were easily accommodated in the newly liberated territory.

The fighting strategy was equally interesting. Until the last moments of engagement, land and air battles were the most pronounced. One unusual case was that of the fight for liberating Hosingo (fondly referred to as the battle for Hosingo) in April 2012. The enemy clearly outnumbered the liberators.

The small team of 100 KDF soldiers could not cope with the close to 800 men attacking from the opposite side. Luckily, the former were not only able to summon for increased supplies but also air support. With bombardment from a single helicopter gunship, the KDF soldiers were able to annihilate half of the enemy forces, whereas the rest fled to safety. This led to the capture of the town of Hosingo, a process that lasted 6 hours.

That brings to mind the numerous threats presented to business from the forces of change. Suppose, a competitor sets up shop in the neighborhood one morning; alongside, he floods the market with low priced closely related products, to the extent that no customer will see sense in continually transacting with your existing and well established business.

Meanwhile, there are old stocks whose prices may not be reduced as doing so would clearly lead to losses. How does one deal with such a scenario? How can the existing business continue safely and at best retain the market share? What is the best response in such a desperate situation? These are mind boggling questions especially in realization that there can be no luxury of air support like the KDF soldiers experienced at Hosingo. This scenario is sadly a common occurrence in business.

Worst hit are small and medium enterprises – SMEs. Research indicates that only 30 % of them survive past the 3rd year, whereas only 15% make it past the 5th year. Eventually, only 10% match past their 10th anniversary. This may not be new news as such, but is nevertheless important to have it in perspective.

In the meantime, there was once a Thika based company named East Africa Bag and Cordage Ltd. It continued existing up-to just before the liberalization of our national economy that took shape in the early 90’s.  This company was in the business of manufacturing of sisal bags. Sisal was then a predominant crop particularly in Thika and Taita Taveta districts.  The bags were in great demand nationally. They were used for packaging sugar, maize and many other commodities.

But, one day a well connected importer flooded the economy with tones and tones of jute or nylon bags, from some eastern country. The same were convenient, cheap and easily replaced the sisal bags. Suddenly, demand for sisal bags evaporated. East Africa Bag and Cordage Ltd. folded operations almost immediately. The sisal industry including the plantations followed suit.

The above scenario was a national shocker those years.  Many jobs were lost whereas spin-off industries were closed. Today, such volatile changes are not uncommon.  Some lead to bitter business rivalry, business collapse and at best loss of market share.

A midst the threats, there are opportunities too that are best exploited rather than left to either waste away or fizzle out. That is why business strategy is a vital tool of tackling the forces of change, which come in different forms, shapes and magnitudes.

Consequently, it matters the extent to which business is ready for the ever dynamic forces of change. Could this then be an opportune time to consider retaining a business “doctor,” counselor or strategist on call?  Perhaps yes, but the choice depends on desired direction and the urgency of reaching the requisite goals.