Recently I had one of the most incredible discussions I've had in 25 years. Following a series of seminars AgKnowlogy conducted with Apply, I contacted participants to determine their interest in exploring how our customer knowledge tools could help them increase sales, customer loyalty and profits. One retailer had absolutely no interest because he was “happy with the way they do things.” In fact he resented my suggestion that change is a necessity in business. What the heck. I told him with that attitude he will likely be out of business within five years — a victim of the tsunami change in customer needs, technology and regulations that is rushing toward us.

The agronomic and operational strengths that made you successful likely won't fuel future growth. Competitors want to move past you, to steal your best customers and to dominate your market. They'll hire your best people if they convince them jumping ship is in their best interest.

Think of your business as a living thing. Like an animal it has characteristics that allow it to survive in its environment. When the environment changes (as it is now), just like living things, businesses that can't or won't evolve will likely not survive. This is the way the world has always worked.

Change usually announces its arrival. Some changes such as regulatory ones are obvious because they are well announced and happen over a long period of time. Other changes such as shifts in product demand and customer needs can quickly impact your business. The more effectively you track changes in customer purchases, measure loyalty and identify changes in the market the less likely change will broadside you. Anticipating change is important but will not affect future prosperity on its own. You must effectively react to change.

Some ag retailers are better than others at dealing with changes in the environment and with customers. Most of us live at least slightly in the past and we tend to stick with things that once worked well. Success, however, can breed complacency by dulling the urgency to respond to change. It becomes hard to let go of practices and customer approaches that no longer create value even when the evidence supports the need for new strategies.

A sense of urgency is your best strategy for creating positive change within your organization. Urgency must be anchored with management, communicated to all staff and felt deeply throughout the organization. Sadly, too many ag retailers act like they are “happy with the way things are.” They risk everything due to complacency that flows from top to bottom in their organization. If you want to blast your people out of complacency, you have to get their attention, provide compelling reasons to act outside of their comfort zones and keep them moving forward. Failure to communicate a sense of urgency encourages people to be content with the status quo. This delays your response to the changing market and wastes a precious resource — time.

To prepare your company for change, you need to take the following steps:

• Determine what needs to change and what the benefits are.

• Communicate the message throughout the entire organization.

• Stress the urgency of making the changes.

• Help people to be brave and dare to dream of a better future.

• Continually reinforce the message to maintain urgency and keep it fresh.

• Accept that some people who are unwilling to evolve may need to leave.

Unfortunately, the biggest obstacle to change will be your own staff. People are motivated by self-interest so it will be necessary to show why the status quo is bad for them. Be prepared to reinforce your vision for the future and why this will be better for everyone.

First, allow an important but not deadly problem to escalate out of control, and widely communicate that the status quo that allowed the problem to occur is unacceptable and the situation is worsening.

Next, show your staff the improvements they and their customers will experience once the change is in place. Implement time-based measurements to keep up the sense of urgency. Then, set goals that are unreachable without implementing the change.

Guiding change is a vital role of leadership that requires steady, focused action. Don't be content with the status quo or staff members who are unwilling to meet the challenges of sophisticated customers and new technology. I have seen great things accomplished by organizations that refuse to be “happy with the way things are.” By collaborating with suppliers, key customers and your own motivated staff, you can solve any problem. Remember working hard is not a business plan and hope is not a strategy.

Bill Keogh is the owner of AgKnowlogy Inc., a company that helps retailers use customer information to reach their potential sales, loyalty and profits. To reach him, send an e-mail to info@agknowlogy.com, call 905/868-9953, or visit www.agknowlogy.com. Thanks to John Reh for the idea.

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