The Art of Pivoting

Pivoting

Our country and the world went through what I would call “The Great Pivot” several years ago when the global coronavirus pandemic struck.

Within a matter of months, the status quo was upended and organizations, companies, and families had to quickly change directions on multiple fronts. We pivoted! Many did so successfully, while others struggled to adapt.

During that period, we pivoted because we had to. These pivots included:

  • Ways to stay connected. Zoom business meetings and Zoom worship services became the norm (and with that, acceptance of our furry family members occasionally crossing into the camera lens).
  • Ways to entertain ourselves. Dinner out became a trip through the drive-thru and bringing food home, or perhaps to a park, to eat together. A night out at the movies was now shown as a “premiere” on streaming channels.
  • Ways to work. We constructed “home offices” out of spare (or not so spare) rooms and remote/hybrid work models became prevalent.

Historically (and broadly) speaking, a pivot, especially in basketball, is often thought of as having one foot planted firmly on the ground and then “with purpose” changing direction with the other foot. Pivots can be both an offensive move as well as a defensive move. When thinking of many of the great basketball players, most were known for their ability to pivot to reach their goals. In the case of basketball, “goals” often meant “the basket.” Increasingly, businesses are also having to pivot to reach their goals. When thinking of a pivot from a business perspective, the pivot could be considered a foundational change in strategy or business tactics that lead in a new direction.

Though the usage of the word pivot in business has been around for a while, recently I’ve heard companies and organizations bringing up the word “pivot” when describing what they are trying to do and/or having to do in their businesses. When things are going well, pivoting can help to grow or expand a business; when things are going south, and especially if in a hurry, pivots may be a life-saving attempt. In these hurried times especially, there is often an inclination to “throw a lot of things out there” and then see what works or can be effective. This is not a pivot; it is more a “hope and prayer.” Pivoting could and should be thought of as a VERY strategic, intentional move.

Pivots are utilized throughout the business environment. A few examples can include:

  • Product offering pivots. Think of YETI and the expansion from coolers into drink tumblers also.
  • Distribution pivots. Consider Microsoft and Office 365, the subscription service for their Office offerings that began in 2013.
  • Technology pivots. Think more recently of AI and its impact in finance industries, especially in areas such as fraud protection and security.
  • Marketing pivots. Think of the introduction of a product or service into a new geographic region or going after a new consumer segment.

For a successful business pivot, a company or organization must know what to pivot upon. Basically, “what foot you are keeping on the ground” and where the other foot is going, and identifying “where, how, and why you are going to change direction.” To this end, marketing research and consumer understanding can play a key role in helping a company to pivot successfully.

Continuing our pivot analogy—for a business pivot, the first thing to understand is where your pivot foot is going to be planted. In other words, what are the core strengths that are going to keep you grounded, and what are you going to leverage as you make your pivot? It’s vital to identify those core characteristics that will provide stability and consistency to the organization or brand, both internally and to your customers and potential customers. For this “pivot foot” understanding, research should identify:

  • Your current organizational strengths and, importantly, define which ones to leverage in the pivot.
  • Current weaknesses and barriers that you have and understand how your pivot will help to overcome them.
  • Who your current customers are and what issues are important to them at this time.

In addition to understanding your corporate “pivot foot,” it is important to identify and understand where you’re going to put your other foot. Getting a better idea of the place where you are going to put your other foot down helps you identify pitfalls, opportunities, and how the change in direction can help make you more successful. For this understanding, research should identify (among other things):

  • What specifically is the product or service you will be selling or offering? What will consumer benefits be?
  • Do you have consumer or potential consumer “permission” to play in the area? Will this pivot pass the “feels right” test with your organization’s customers?
  • Who are your potential customers? Will your existing customers follow you?
  • The potential of the new area into which you are stepping. Will it be profitable? Are you making an offensive or defensive move?
  • Whose territory are you potentially stepping in? What is your “new” competitive landscape going to look like? Are there other companies/organizations already in the place you are going to land? How are they likely to react to you entering into a new area?
  • Will there be internal organizational or process adjustments that need to be made in the change, etc.?

As in basketball, a pivot initiated by a company or organization should be designed to help “score” and contribute to winning for both the company and their customers. Whether or not the pivot occurs by choice or by an outside force (such as the coronavirus pandemic), being strategic with a pivot and utilizing insights and data to purposefully pick a direction to pivot to, will help ensure a successful change in direction.

Author

Clay Dethloff

Clay Dethloff

Senior VP, Insights and Innovation

Clay is an experienced marketing research professional with more than 25 years of experience in both leading and delivering qualitative research in the industry. As the head of qualitative research efforts at Decision Analyst, Clay is responsible for maintaining and improving the quality of qualitative research, identifying new/innovative qualitative research tools, and overall management of the qualitative team.

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