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The Only Constant in Life is Change.

Change happens to all of us, it can shake our foundations, and radically shift our lives and trajectory – for better or for worse! Whilst external change is a fact, how we respond is our choice. The facts and choice of change can be best summarised as:

• Change brings uncertainty (Fact).
• In response to this Uncertainty we (Choose) either:
  • A Fear / Stress response.
  • A Faith / Opportunity response.

Whether we see change with a lens of fear or a lens of faith is up to us. Whether change causes us to withhold back in stress or move forward with excitement is up to us.

We cannot control the external events that happen to us, but we can control our response.

Questions and Actions

• What is your default response in times of rapid change?

Take for example, what is occurring in Australia at the moment:

• Unemployment levels at their lowest in almost 50 years.  (Increased pressure to attract and retain talent.)
• Interest rates rising rapidly.  (Downward pressure on property prices, tighter lending criteria, increased mortgage repayments.)
• Global supply constraints due to Covid.  (Increased prices for goods and services).

All of these events, bring change and pressure. Are you more resigned to the “fact” that this is just the time you are in? Or… Are you actively seeking ways to use this to your advantage? Discuss this in your group.

Tsunamis are huge waves caused when tectonic plates under the ocean move and collide causing a shock of energy that creates these monster waves. From a leadership and business perspective, these waves of change spell opportunity for some, and disaster for others. We see this in the biblical account of Joseph when he led Egypt through the seven years of plenty and the seven years of famine. Seven years of prosperity that everyone experienced and enjoyed.

• Most would have lived and enjoyed the moment of such a time.
• Some would have saved a little.
• No-one saved and stored grain like Joseph.

He had a prophetic vision from God that gave him the strength and fortitude to execute a 14 year strategy. Think about that.  Many of us lose sight when our efforts are not rewarded within a year, let alone seven or fourteen.  We lack conviction of belief, commitment to execution and clarity to strategy. After the seven years of plenty, were seven years of famine, that were so severe that the whole world was coming to buy supplies from Joseph. This Tsunami event created a market opportunity where the whole world sought supplies controlled by Joseph. Crazy!  The whole world coming to you. Read that again… Joseph read the waves, positioned himself correctly and moved in the right direction.  What was a disaster for everyone else, was an opportunity for Joseph.

Then Egypt’s seven good years came to an end and the seven years of famine arrived, just as Joseph had said. All countries experienced famine; Egypt was the only country that had bread. When the famine spread throughout Egypt, the people called out in distress to Pharaoh, calling for bread. He told the Egyptians, “Go to Joseph. Do what he tells you.” As the famine got worse all over the country, Joseph opened the storehouses and sold emergency supplies to the Egyptians. The famine was very bad. Soon the whole world was coming to buy supplies from Joseph. The famine was bad all over. Genesis 41:53 – 42:17 (MSG)

Conversely, for those who see the waves approaching and refuse to adapt, then a Tsunami can destroy the largest and most established.

A Case Study In What Not To Do – The Kodak Story

Kodak was founded by George Eastman in 1889 with a vision to democratise photography.  He believed that photography should not be limited to the rich and privileged, but to the masses. Kodak paved the way for innovation and invention for over 100 years. So dominant, that they practically pushed out the competition. At its height:

• 85% market share on camera sales.
• 90% market share on film sales.
• Sales exceeded US$10 Billion in 1980.

Sounds like another Joseph scenario!

From such a height and perceived invincibility, the company filed for bankruptcy in 2012. Kodak failed to ride the Tsunami of digital transformation and was crushed.

How does this happen and what can we learn from it?

The word “Nostalgia” comes from two Greek words that mean to “return” and “pain“. Nostalgia – It’s that twinge…… that ache you receive when you return to something that is no longer. It is the pain and emotion that is attached to the memory that is stronger than the event itself. Nostalgia has a place.  Playing an old vinyl, re-visiting a place or reminiscing through photos that tell of days gone by, are all beautiful expressions. The problem arises when we hold on so tightly to the days of old, that we fail to grab hold of the opportunities of the future. To see how this applied to Kodak, let’s review the business model. Kodak applied a “Razor and Blade” strategy.  Manufacturers sell their razors cheap, so customers are locked into their ecosystem of specially designed razor blades.  We see a similar strategy for computer printers (Cheap printers, expensive ink), and even electric garden tools!

• Kodak made some money when it sold a camera.
• Kodak made a bit more money when it sold film.
• Kodak made most of the money when it processed the picture.  (My money don’t jiggle, jiggle it folds, I like to see…… I think you get the idea!)

During this time of rapid change, Kodak were nostalgic to how they made money in the past and held onto it so tightly that it led to their demise. Two stories that illustrate this:

1. First to Create and Last to Launch The portable digital camera was invented by Steven Sasson in 1976.  He was (insert drum roll), a Kodak employee! When Steven shared the first prototype to his leadership team, they saw it as a threat to be managed, rather than an opportunity to invent and distinguish. After reviewing the prototype, Steven was told, “That’s cute, but don’t let anyone else know.” It was until fifteen years later, that Kodak commercialise their first digital camera after already loosing significant market share to its competitors (that were previously, almost non-existent.)

Questions and Actions:

1. List the waves of change that face your industry, geography or company.
2. Next to each change, categorise them into the following 2 categories:
   1. Temporary (The wave will dissipate/fluctuate over time).  Eg – changes in interest rates etc.
   2. Trend (The wave will continue to build over time).  Eg – remote working arrangements.
3. With a focal point for 3-6x months time.
   1. Which trends have the most potential to impact you?
   2. How are they are a threat?
   3. How are they an opportunity?
   4. Pick the top 1-2 opportunities.
   5. What are the next 3x steps that give you more clarity or certainty?

(Note: Don’t let this exercise distract you from your core focus or day to day responsibilities.)

2. Seeking Profit over Values. Before a single line of code had been written for Facebook, Kodak purchased a web enabled, software company that had the ability to upload photos, share, like, comment and sort into albums.  Sound familiar? But there was a catch….Photos from the site were deleted, if users failed to send the picture to be printed (to Kodak of course). Instead of embracing Digital Transformation, Kodak were trying to use Digital Transformation to fund their old business model of print (Nostalgia). Imagine what the world could have looked like if Kodak embraced something closer to their original vision?  A vision where they wanted to democratise photography, a vision to share, a vision to capture moments and share memories to the masses.  Would Kodak have been the first Facebook???  One can only surmise.  What is assured, is that the focus on profits over values was a guaranteed path to failure. Values give you a bearing point, a truth North that you can turn to when things are clouded. The next section gives context and exercises to help build bearing points and foundations for both your corporate and personal leadership.

Questions and Actions:

Values in Corporate Leadership:

Traditional corporate leadership may express their values on a banner for all to see.  They may include values such as “Integrity”, “Respect”, “Teamwork” etc.  A description of each would be included to minimise misunderstanding. Now, whilst these are good and helpful, my personal experience is that they can be a little clunky (does that count as a word??) in the day to day. Try to distil your values into 1 or 2 questions that you can ask yourself and your team on the run. These questions are not designed to talk about every value you aspire to.  They are questions that help you focus on the core of who you are or who you aspire to be. This exercise is a workshop in itself, so let me give a couple examples to help. Example 1 – Cavalry One of my previous companies was a Hybrid Cloud Company. It’s a great business where there was very little tolerance from customers if there was any downtime. At such pressure moments, it was easy to point the finger and blame others.  This was a sure fire way to shift blame, erode personal responsibility and kill culture! The 2x Questions we used:

1. What is the client perspective?
2. Have you acted in a way that you are proud of yourself?

The first question helped us to think about someone else (which got our eyes off ourselves and reduced the temptation to defend). The second question is one of self-efficacy and personal responsibility (which got our eyes off blame and onto personal improvement). Example 2 – 100X Legacy 100X Legacy is my core focus today. We believe that we should all be living a life of multiplication to give back to the Master Jesus. We want to play our part in helping our clients 100X their:

• Time
• Money
• Mission

We believe you need all 3 to have a fulfilled life.

• Time + Money (But no Mission) = Meaningless.
• Time + Mission (But no Money) = Frustrated.
• Money + Mission (But no Time) = Squeezed.
• Time + Money + Mission = 100X Legacy

The 2x Questions we ask today:

1. Do they feel the love?
2. Was it excellent?

The first question helps keep our priorities right.  You have to feel the love before you can trust the person who is guiding you through change. The second question helps us to respect our clients and ourselves.  We want to be involved in work that we are proud of and our clients are proud to associate with. What 2x Questions could work for you and your team? Have a play, be happy to be copy, and discuss with your group.

Questions and Actions

Values in Personal Leadership

Remember, organisations don’t change, churches don’t change, people do.  The first people that need to change are the leaders. If you want to grow as a leader, you need to commit to:

1. Lifelong Learning and continuous improvement.
2. Ultimate responsibility with a focus on Being Good Vs Looking Good.

This is faaaaaaaaaaaaar easier said than done. It makes for a great slogan on a postcode and also doubles as an inspiring Instagram story.  I mean heck, who doesn’t like hearing a story of someone who came from little, took ultimate responsibility and implemented lifelong learning to become an Astronaut, Navy Seal sniper, Neurosurgeon and an Olympic Gold Medalist for synchronised swimming? Here’s a framework to help you on the journey. The “I” and “R” Framework aka Know your Identity and know your Role. Giving and receiving feedback (which we need in order to change) can be hard to take/give if your feel your identity is under question. For example.  Imagine you are receiving feedback from a friend or colleague. Friend: “It looks like you struggle in conflict situations.  I either see you avoid it all together, or fawn over the person with an overemphasis on their positives without really addressing their improvement opportunities.” If you’re not comfortable in your Identity, you may respond with: “I know, but I am just such a nice person.” Someone has given you feedback on how you can improve in your role as a friend or leader. You have responded with a statement that refers to your character or identity. Your Identity and Role are seperate, and should be treated as such. The person providing feedback, wasn’t making a comment on your identity.  They were giving you an improvement opportunity on your role. If you confuse the two, you will significantly stunt your growth and development. If your identity is secure and you realise it is seperate to your role, you would instead respond with further clarification questions such as:

• How long have you seen this?
• How does this affect others?

etc. Have a commitment to Be Good Vs Look Good. When you are receiving feedback (from the right person), don’t be defensive and don’t take it personally. Don’t waste their time trying to explain things that are not important to the feedback.  Even if you disagree with some of what is said, respond with a statement that affirms what they said whilst letting them know that there are other mitigating factors (without the need to explain them). For example, “Yup, thank you for that.  I’m going to take note on what has been said and chew on it.  There are some other factors that influence the specifics of that example but I think your point is valid.” As we close off this section, here are three personal reflection questions I find helpful in my role as a leader:

1. Would you follow you?
2. Why would you follow you?
3. How do you demotivate your team?

Have a chat with your small group.

Embrace change, seize it with gusto! Life is too short to be focused on protectionism.  Get out there, seek opportunity, make some mistakes, and embrace progress over perfection. Life is too short to focus on looking good at the expense of being good.  Let go of the need to impress people and embrace your God-given mission as a leader. Here’s to a life well lived. Peter