The Pivot Story Type: What It Is and When to Use It
When a business is looking to change direction, leaders are tasked with navigating the complexities of a strategic shift, which demands new solutions and careful consideration of how to move forward.
Though pivoting your operations can seem overwhelming, implementing a transition presents the opportunity to tell a compelling story. Do this by combining engaging narrative elements and concrete, actionable steps. With a powerful story, leaders can guide teams through periods of upheaval with authority and inspire them toward collective success.
This blog post will explore why storytelling can be invaluable for executing major changes with poise and precision.
Why use the pivot story type?
Pivoting represents a growth and change narrative, recognizing new opportunities and steering the company toward them. When you craft the stories you tell around "The Pivot Story Type," you craft tales of transformation that charts your organization's journey through the shifts.
Pivoting allows businesses to find new revenue streams, tap into new markets, and respond to unforeseen market changes. It can help them stay relevant in a highly competitive landscape. Pivoting enables businesses to adapt to constantly evolving market demands and meet new trends, technologies, or customer preferences.
Take a look at your company: Have you recently refreshed your values? If so, why?
Perhaps you refreshed your core values to reflect the changing needs of your community and market. Maybe you determined that your focus should be on collaboration, creativity, diversity, and inclusivity to ensure everyone interacting with you feels accepted and valued. Whatever refresh you made, share the story of how you made this decision and the outcome for your organization.
Failing to recognize the need for change can have long-term implications, such as a decrease in revenue, loss of market share, or failure.
Your pivot story is one worth telling, and it can inspire stakeholders and customers. As leaders, we must communicate this story effectively, weaving an engaging narrative with concrete action steps. The pivot story type provides a valuable lens through which we can understand, navigate, and celebrate change.
Through this, we foster an environment of understanding and inspiration for our team, equipping them to steer through the upheaval and work toward success. Stories of pivots not only become chapters of change and adaptation, but they also stand as powerful symbols of progress and determination. Let's embrace the pivot, tell its story, and in doing so, prepare our organizations for the vibrant ebb and flow of the business world.
Identify those that could be affected by this change in direction
When considering a business pivot, identify the key stakeholders affected, including customers, employees, shareholders, suppliers, partners, and competitors. Each stakeholder will have a different level of interest in the change, along with unique perspectives and concerns. For instance, employees may worry about job security or role changes, while shareholders may focus on the financial impact.
By taking the time to identify and engage with key stakeholders, businesses can anticipate potential issues and take steps to mitigate adverse effects by tailoring the story to each audience. This, in turn, builds trust and ensures a smoother transition and a more successful outcome.
Look at the pivot successes of others
Despite the challenges, the pivot concept has historically proven beneficial for businesses and stakeholders. By embracing a pivot, you adopt a growth mindset that allows you to explore new possibilities and unlock new opportunities, just like many successful companies, such as IBM and Nintendo, have done in the past.
IBM, founded in 1911, was initially known for its success in manufacturing and selling mainframe computers and hardware systems. However, when faced with declining revenues and near bankruptcy due to the rise of personal computers and shrinking demand for mainframe systems in the early 1990s, the company responded by undergoing significant transformations — including reducing its workforce and refocusing the company's efforts on software and services — that laid the foundation for IBM's future success as a global technology and consulting company.
And by 1996, IBM was telling a story about how the internet would create a paradigm shift in business models that had remained largely untouched for centuries. And that it would transform the nature of how both businesses and consumers interacted, coining the term e-business in the process
Another example of a successful business pivot is Nintendo. They were originally founded as a manufacturer of playing cards in 1889. Yes, you read that correctly. The company pivoted to become a leading producer of electronic games and consoles. In the 1970s, Nintendo began producing electronic games and launched its first home console, the Nintendo Entertainment System (NES), in 1985. In recent years, it pivoted again with a renewed focus on mobile gaming and the development of the hybrid home console and portable handheld device, the Nintendo Switch. These pivots have allowed Nintendo to continue to innovate and grow in a highly competitive industry, solidifying its position as a leading video game company.
The Nintendo Switch story was about changing (switching) how you played, where you played, and even who played with the device. It's narrative was so refined it manifested in the device's name. Brilliant branding.
Pivoting their business strategies has allowed IBM and Nintendo to stay agile, increase profits, and maintain their competitive edge. They have done so in the face of ever-evolving market demands, finding long-term success in today's rapidly changing world.
And each pivot brought with it the need to tell a new story.
Account for potential risks
Potential risks and concerns are bound to arise when pivoting a business; however, being proactive and developing a story that considers those obstacles can alleviate concerns and ensure success.
Whether it's financial risk, brand reputation, or loss of customers, explore in detail how to integrate those topics into your story. Do this by anticipating any challenges, then develop a story that accounts for those potential risks.
At the same time, remain confident in your pivot and stay optimistic about the future. The goal is to create a strategic and inspiring narrative to get people excited about what's ahead, highlighting the potential rewards of embracing change and taking risks.
Through authentic storytelling, recognize and celebrate milestones achieved during the pivot. Look to team members, customers, and partners who played a role and tell their stories. This will show appreciation for the effort and dedication, motivate others, and create a culture that celebrates progress and growth, building trust, loyalty, and confidence in your organization.
Engage stakeholders beyond your four walls with an external story
To effectively reach — and resonate with — stakeholders, develop a compelling external story that engages them beyond their immediate sphere of influence. Switch it up (pun intended) but keep the core narrative the same!
An authentic, consistent, and transparent story can highlight your organization's commitment to driving social impact while establishing credibility with external partners, customers, and investors. But to find that story, companies must uncover their unique value proposition and determine what sets them apart from the competition.
Start by creating a clear vision for the future by understanding key stakeholders' needs, then craft a unique message that speaks directly to them. Your external story should highlight tangible examples of your plan to impact the community and market — for example, are you launching an initiative or program or forming a partnership or alliance? Outline how your story will be shared and which channels you'll use.
In today's ever-changing landscape, companies must be agile and willing to shift strategic plans to stay relevant. Knowing the proper steps to make a change can help ensure a successful pivot that pleases all stakeholders while staying true to the organization's core values.
Embrace the power of the "Pivot Story Type" as you navigate change. An authentic narrative encapsulating your strategic shift informs stakeholders and deeply engages them in your transformation. Show your commitment to driving social impact and making it tangible. With the pivot story, you're inviting stakeholders into your journey, resonating with them, and drawing them towards your shared success. Your evolution is an announcement and an invitation to be part of a larger, purpose-driven change.
Now is the time for companies to challenge convention and capitalize on the opportunity for transformation. If you're interested in making an impactful transition, book a 20 min story assessment, and let's see if we can help you tell the right business story.