Take The Helm
Leaders Take The Helm in Stormy Seas
No doubt, today’s Building Material industry is stormy. The industry itself seemed to show its desperation at last year’s 2009 IBS Show, displaying a theme of “Survival”. It seemed the industry was saying it was OK to give up until the market returns (looking for a silver bullet approach). While a trade show does not a successful year make, it does send important signals of its key players and the industry itself. Last year’s show signaled stagnancy, with new products and programs few and far between. Most companies stated their strategies were “status quo until market conditions return to normal”. Well gang, there is no normal. And for sure 2.1 million housing starts will never be the norm, maybe 1.2 million starts a few years out.
As I attended the 2009 BATIMAT show in France this past November, I did see some hope from the exhibitors and investments they are making in their company and the industry, but I also understand Europeans are more optimistic than Americans… they tend to see opportunity where we may see constraints. I hold great anticipation to see what the upcoming 2010 IBS brings.
While the seas are stormy, some leaders have emerged to hold their helm and guide their companies into more successful seas. Only a select group of companies have really taken a leadership role given current market conditions. In essence a company has two choices; 1) Cut its way to prosperity; reduce spending, eliminate sales and marketing people, shut down lines or entire plants and send the people home, fight to steal competitor’s customers by reducing price (dramatically)… boy that sounds very familiar to most of the market. 2) Take Leadership; leaders (not necessarily market share leaders), rather thought leaders find the opportunity to lead through the storm and steer their company to look at the market conditions as an opportunity versus a threat or an unfortunate reality.
Most of these companies are smaller and more agile and aren’t burdened with the conservative philosophy of thinking they must “play not to lose”. Instead, these leading companies are “playing to win”, looking for all the angles and ways to use the market conditions to their benefit. Those companies have grown profits by establishing new business models, buying fledgling companies, and taking profitable share for stagnant competitors. This thinking has allowed these companies to dramatically outperform the market… which is the true measure of success (not what the company puts in its strategic plan document).
Find your path to a new form of leadership…. Take the helm and see where it can take you.
Bill Rossiter
