Our View of the New Normal Business Challenges

When he coined the term, Ian Davis, McKinsey’s worldwide managing director had this to say about the

New Normal:

We are experiencing not merely another turn of business cycle, but a restructuring of economic order.

The business landscape has changed fundamentally, tomorrow’s environment will be different, but no more less rich in possibiliities for those who are prepared.

The new normal will be shaped by a confluence of powerful forces—some arising directly from the financial crisis and some that were at work long before it began.

Executives preparing their organizations to succeed in the new normal must focus on what has changed and what remains basically the same for their customers, companies and industries.

At The Whetstone Edge, we are focused on helping companies figure out what has changed and how to succeed in the new normal. It is natural for companies to question how things have changed for their business and look for ways to cope or adapt. However, we believe this doesn’t lead to new possibilities or new opportunities and is unlikely to lead to practices that are sustainably profitable. Looking at the New Normal from the customer’s perspective does.

Personal lives have change for most people and it is not just their financial situation. There are also a confluence of forces that have people re-evaluating their lifestyles, what they value, the basis of purchase decisions and the types of relationships they want with companies. Ignoring these forces will lead to a serious chasm with business coming up short.

The underlying issues are no less relevant to business-to-business companies. Client companies must adapt to the changing demands and requirements of their customers, a fast-changing business climate and the need to find competitive advantage in the open, transparent, collaborative and fast-paced dynamics fueled by social media. In short, they need relationship with companies who understand their challenges and help them succeed.

For a more on our take on the New Normal:

 

The New Normal for Customers and How Businesses Must Adapt (Paper)

Somethings Will Never Be the Same (Blog)

New Normal Challenges and Opportunities (Video)