The Twinkie and the Kindle: A Lesson on the Need for Change

Recently, in an annual meeting, I put a Twinkie and a Kindle on every seat. I talked about Amazon and its remarkable success in developing and constantly iterating the Kindle. On the other hand, Hostess’ lack of product change had killed an iconic brand.

The market, your (good) competitors, technology, and customers’ tastes, needs, and expectations are always changing. If you don’t change, you’ll get left behind. Change is painful, almost unbearably so, but it’s a vital element in bypassing the status quo, keeping a company current, and breaking into higher profits.

These five decisive steps will thrust your business forward in the ever-changing market, giving you the competitive edge:

1. Start at the top.
Most senior managers will not welcome the new changes taking place. You must begin by determining who’s willing to get on board and who will continue to use the obsolete practices that led the company into its downward spiral. To motivate the rest of the company to change, you must get rid of those at the top who won’t get on board.

2. Take your message to the masses.
Company employees need to hear you cast the vision for change; you cannot rely on others to accomplish this task because you will be very disappointed by the outcome. Many of your people have been itching for change, frustrated and disgusted by the absurd actions of company higher-ups. Your message will resonate with them and be embraced.

3. Cut out the nonsense.
Get rid of time-wasting meetings that exist solely to air grievances. These are just used for political positioning within the company — nothing gets done, and there’s no objective. When you cut out these nonsensical areas and the panderers creating them, the message will be clear that change is happening.

4. Paint a vivid, realistic picture of what will happen if change is not made.
A clear depiction is needed for true change to be seen as necessary and be accepted. This must be tirelessly reiterated. Assail your team with the depiction of a company that could go under (and use local examples if possible). Everyone needs constant reminders that companies can and do become extinct every day. Make them realize that the pain of not changing will be much worse than making the changes necessary to be competitive in today’s market.

5. Terminate people who won’t go along with the change, and provide incentives for those who do.
An example needs to be made of people who blatantly refuse to make the changes necessary for the company to thrive: Terminate these saboteurs. This will send a clear message to the rest of the workforce that more consequences will follow if they don’t get on board with the changes taking place.

For those who do support the changes, provide ample incentives to keep them on board. These don’t always need to be monetary; they can even be congratulatory symbols to show you notice their hard work. By inspiring people with your changes, they’ll have something to believe in, provoking them to champion your cause.

Fear or healthy concern?
By having a top-notch team in place from the beginning, there will be no fear involved with the change. Eliminate the people who won’t go along with the change; bring in those who will. If you aren’t purposeful about this, you’ll be in a constant battle. These are the people who have something to fear.

When you communicate the case for change, most people want to go along with it. It’s not because they fear the CEO; they don’t want to jeopardize their own future. The only fear they have is what the market and the competition will do if the company doesn’t change, not what the CEO will do to them. This isn’t fear so much as healthy concern.

Change is the basic element needed to take a company into double-digit profits. After you fill your team with those in agreement, the key is to keep them abreast of new innovations in the market, customer demands, and competitive moves. The business world is dynamic, and if you don’t keep your people informed, they assume it’s static. Therefore, they will be static.

Every opportunity you get, celebrate wins and talk about dangers in the business world. Keep in mind that change is painful and comes at a cost. Don’t be afraid to rid your business of the naysayers and nonsense, send a clear message to your team, and provide incentives for those who fearlessly embrace the changes necessary to ensure your company will thrive. By incorporating these five components, you will decisively lead your company into a profitable future.