"We've always done it that way."

“We’ve always done it that way”

How many times have you heard this phrase in the business world? How many times have you said it?

Working with Business Leaders every day, you may be surprised (or not) by the amount of times I hear this phrase. What’s scarier than hearing this phrase from leaders, is that it refers to how they do business today. Are their businesses the same today as they were 5, 10, 20 years ago? Are their employees or even customers? Is the world the same?

There is a danger that comes with stating and living this phrase.

An example outside the business world is former college basketball Coach Bobby Knight. Known as “The General,” he was famous for his explosive temper; most notably “the chair throw” (for those unfamiliar, type it into Google and you will not be disappointed). Coach Knight ran his programs exactly the same way year after year and was one of the most successful coaches of all-time; until he wasn’t.

Later in Coach Knight’s career, college basketball players were becoming superstars (entitled) earlier and frequently leaving college before graduation to pursue professional careers in the NBA. Coach Knight was not a fan of this new breed of player; and he refused to change how he did things. His temper, the way he ran his programs and treated his players did not change; even though the players and the college basketball landscape had. This led to his downfall and the end of his career. If you look him up now, much of the information at the top of the page are focused on the negative.

For all his success, Coach Knight fell out of favor because he was unable to adapt; aka “I’ve always done it that way.” Ironically, one of his assistants, Coach Mike Krzyzewski has learned to adapt and has surpassed Coach Knight for most wins all-time.

Unfortunately, many businesses and business leaders closely resemble the Coach Knight example. “We’ve always done it that way,” is a justification for status quo. This is especially true for those businesses who have maintained any level of success. Leaders of successful industry either do not want to change, or truly believe that previous success correlates to future success.

In a vacuum, that may be true. However, the fact is if you’ve been in business for any length of time, the world is not the same as it was when you started. Business leaders have so much more to consider as they are future planning.

One of the changes is in technology. As recently as a year ago, I would hear from clients how their employees were not “tech savvy.” Now, I hear from my clients that they are having to change internal policies because even the employees without bank accounts have cell phones; and they are using them during work hours.

Technology has also changed the way business leader’s focus on their go to market strategies. They need to understand that, thanks to advances in technology, their potential clients can and do learn almost all they need to know before even taking a meeting.

CEO’s and CFO’s now also have to deal with constant changes in the law. Compliance issues like the ACA, FLSA and others have leaders exposed to fines that can cripple or even bankrupt their businesses.

Finally (at least for this post) is the new generation in the workforce. As many have already noted, by 2020, Millennials will make up 50% of the workforce. Further, according to a recent Deloitte Study, HR Technology Disruptions for 2017: Nine Trends Reinventing the HR Software Market, 40% of workers in the United States today are contingent in some fashion. What this means is, like it or not, the people businesses are going to have working for them are different from those that they’re used to and those that will soon be retiring. Not focusing on the changes and the people specifically can have dire consequences as it already has for some.

The first real life example company had not monitored or changed job descriptions to adapt to current regulations and employee culture. This led to a lawsuit from a current employee. The organization quickly realized that the employee had a case, as would many other employees if they too decided to sue. So, they went to court. After over a year in court and hours away from day to day operations with the CEO, CFO, Controller, HR and others; they “won.” Which only cost them $150,000.

The second example sadly is ongoing. This organization has been operating in the same fashion since inception. They treat and view their employees not as assets, but as a necessary evil that must be monitored at all times. This company believes that based on their industry, they’ll never get good people. They continue to wonder why their entire workforce turns over every year. They also do not see the cost associated with this turnover.

All of these examples both inside and outside the business world show the dangers of “we’ve always done it that way.” As the workforce changes, technology advances, rules & regulations change; leaders must all learn to embrace change or at least adaptation. Those who don’t will find themselves captaining a sinking ship while being passed by others in rockets.