Over the years, I have personally talked with thousands of business owners, executives and managers. I have seen a pattern develop, time and time again, during periods of loss or change. I can assure you that the rate at which you go through these stages determines how soon you can get your business back on track.
Here are the seven steps that almost every business goes through at some point:
Step 1: Denial
This is a refusal to believe and accept that things have changed. All efforts and energy are invested into resisting that conditions have changed. This is the point when you have your head in the sand. This is Blockbuster thinking Netflix was a fad in 2003.
Step 2: Anger/Blame
The next step inevitably finds a target to blame for the change. All energy and effort is spent on finding someone to assign blame to as the reason for the current situation. Blaming others never does you good. Accept responsibility for everything in life!
Step 3: Bargaining & Hope
This next stage involves bargaining and hoping for someone to save you. This is a low level of responsibility. For example, think of people waiting for the banks to free up capital or the government to come in and play Robin Hood and save you.
Step 4: Apathy
Eventually, you come to realize that things have changed and no one can save you. This results in people moving into major contraction and worsening of their own condition by saving money, energy, resources, creativity and any efforts to find a way out. This is a stage of quitting or withdrawing.
Step 5: False Acceptance & Action
The next thing is a spurt of effort to accept conditions and do something about it resulting in inconsistent and disappointing actions. Most underestimate the degree of change (pain or loss) and then take actions based on their underestimation.
Step 6: Disappointment (another level of Apathy)
Because little actions never result in satisfactory levels of production, you will feel more disappointment, confusion and possible frustration. This disappointment should prepare you for true acceptance of the situation and what is required to dig out of it.
Step 7: True Acceptance Stage
This last stage is when, for the first time, you or your team become fully aware of the amount of change and are now prepared to let go of the past and move into the future. You realize you need new skills. In this final stage, you will experience a reinvigoration and excitement about your business.
You are ready to take your business back to prosperity when you can answer “yes” to the following:
- Are you no longer concerned with who is to blame but rather what you need to do?
- Do you believe that no one is going to come in and save the day?
- Are you disappointed in the results from the actions you’ve taken?
- Is it time to learn new actions, new skills and new approaches for the new economy or marketplace?
- Don’t wait for any outside thing to save you – not the politicians, not the government, not your neighbors, not the marketplace … TAKE ACTION.
The rate at which you go through these stages determines how soon you can get back on track.
