Seth Godin has a great post on his blog about the NY Times struggle to remain profitable (and if the Times is struggling so is everyone else) and some advice about where they missed the boat. He concludes with this point that is really relevant for any business to ask whether they are all about looking back and maintaining their position or moving forward to find their next business model.
I guess it’s about the difference between:
- senior management playing defense, supporting and protecting the status quo and avoiding offending the elders upstairs vs.
- using existing momentum and clout to build assets for the next business.
I admit that maintaining your current business model is important to maintaining profitability, but many times businesses fail to think of the future. Many newspapers owners lived high from their publications high profit margins and failed to reinvested and find the next business model and are suffering the consequences today.