Pivoting isn’t just a fancy way of saying you were wrong

When we make new products, we test our theory of what the customer needs. Pivoting is the act of changing that theory in light of game-changing market feedback. The market’s been pretty loud these last 100 days, and more businesses are attempting the pivot than at any other point in history.

It’s a skill I write about in Trusting Technology, and one that will stand you in good stead for the recovery.

Pivoting works best when your business has the capabilities required to deliver something other than your current offerings. It’s a decision to redeploy those capabilities in pursuit of a different product (solution) or—more riskily—a different market. The market shift is harder since it requires new customer relationships, a different brand, and new distribution channels.

It can be relatively simple, say, to adapt a piece of software to meet subtly different needs in a new market. Much harder, though, to quickly get the attention of buyers in that market. For instance, DocLauncher developed an app to provide faster access to important information. They are now contributing the product to healthcare businesses by offering a COVID response information centre to speed up the handling of care-related documentation. If you know anyone in the space, you could do them a solid by passing this along.

In other fields, we’ve all seen news reports of chemical and manufacturing businesses pivoting to produce in-demand hand-sanitizer and PPE. They’ve re-purposed existing skills, equipment and capacity to a new, topical and valuable end. Assuming effective coordination for new distribution channels, these precious products will reach people in need—and the businesses will ride out the storm in their established markets.

As with agile, this wave of pivoting has been enforced by an overnight, tectonic shift in demand from old products to new. For many, this will be a temporary shift while demand recovers for their original offering. For others, the pivot could prove permanent.

Either way, it’s a new skill that will make these companies more resilient in the face of bountiful uncertainty. 

Pivotal Decisions

Has your business faced a need—or an opportunity—to pivot?

If you’re considering the concept for the first time, how could pivoting provide you with new opportunities for revenue—and resilience?

PS A reminder that “Operate a remote business at full function” is available here.

Trusting Technology is a book about forming ideas, exploring opportunities with customers and colleagues, and building your future together. Order your copy here.