Business as Usual or Disruption?
Where are you with your strategic planning? BAU or Disrupting your own business?
Where are you with your strategic planning? Is your plan focussing on BAU Business as Usual or are you looking for ways to disrupt your own business model to drive the business to the next level?
I have recently facilitated a strategic planning session for a club and one of the directors pulled out the old line “If it ain’t broke, don’t fix it.” Translation – BAU. I am a huge fan of continuous improvement that says “If it ain’t broke, how can we do it better?” Translation – can we disrupt our own business model to make it work better.
Disruption is one of those phrases that takes many forms. I believe initially it was ascribed to ‘digital disruption’ – where technology enabled old ways of doing things to be streamlined, fast-tracked and simplified, making somethings previously inaccessible – accessible.
In the 2020s anyone under the age of 40 will probably answer most work related questions with ‘there’s an app for that’. Tradies, professionals, organisations have been able to adapt technology to improve, speed up and reduce cost (including reducing head count) of their jobs in a way that wasn’t possible, till the internet, mobile phones, tablets and improved software enabled the ‘disruption.’
Once we all become more comfortable with digital disruption, including many sceptics realising that resistance was futile, we all learned to adopt and adapt to the ‘new way of doing things.’ Whilst some of the technology is fraught with security issues, defence for these are continually being strengthened, we will never go back to hand written passbooks for bank accounts, in the foreseeable future.
In hospitality, we have disrupted our businesses with QR Code ordering, digital membership programs (in lieu of a physical card) and adopting ‘Tap and Go’ payment technologies which has dramatically reduced our volumes of cash handling. Some elements of our business are yet to be completely replaced with technological options (but understand that vending machines and robots already exist that could supply and service on premise patrons), so we still currently rely on human product and service delivery.
Other forms of disruption
How else can I disrupt my business model, I hear you ask. Disruption can take the form of operational, product or service disruption – doing or offering something out of the norm.
Operational disruption can include changing processes that streamline workflows – think slushie machines with premixed cocktails, no technology just a modified process. Automatic spirit nip dispensers were initially also a non-digital disruption to the old nip measure pouring process, although electronic ones have since taken over.
In the kitchen a major disruption years ago was the sous vide (partly pre-cooked food products) process which accelerates meal prep times when patrons order meals that traditionally took a long time to cook.
The microwave oven was also a revelation over 40 years ago allowing paid cooking or reheating of food (which I grant you was a form of new technology).
Product disruption can be modification of products to a new and unexpected form that can even create a new market niche or larger segment. Great examples of this include energy drinks (Red Bull, Monster and the like), Mid-Strength beers (now the largest segment in Australia) and the zero alcohol beers, wines and spirits – who would have ever imagined a non-alcoholic version of our favourite tipples?
Zero alcohol drinks are now a very fast growing segment and, in a contradictory disruption, we have the introduction of alcohol to drinks traditionally sold as non-alcoholic soft drinks – think Hard Rated and its imitators.
Service disruption can take the form of unexpected additional service offerings that exceed the customer’s expectation. I remember years ago when clubs and pubs put free cheese and crackers on the bar, for Friday Happy Hour and now some clubs offer things like valet car wash, private lounges for VIP gamers and additional services for members through the Loyalty Rewards programs. These may or may not be linked to member gaming, but involve members using their Membership cards with every transaction – entering the building, purchasing food, purchasing drinks, gaming, wagering or getting involved with special events (like Melbourne Cup Luncheon etc.).
One of the most recent trends disrupting business, brought back to the industry from overseas study tours, has been Competitive Socialisation. Non-traditional entertainment options to engage the 18 to 39 age demographics with fun, sports related activities where individuals can compete against each other, whilst enjoying our hospitality in a friendly and inclusive environment.
Other services clubs could offer harks back to the more open and friendly community-minded days, where the club handyman goes to an aged member’s house to assist with some maintenance jobs, providing assistance with shopping for decreased mobility clients and donating excess food products to organisations like OzHarvest.
The key thrust here of course, is doing something out of the ordinary, something that is NOT part of business as usual. Many disruptions do eventually graduate to being part of BAU, but then you should be working on your next disruption by then.
For more information on this topic, contact Ron Browne, Managing Consultant at Extrapreneur Services ron@extrapreneurservices.com.au 0414 633 423
