Changing direction is, in theory, a good thing for business. The path to success requires constant monitoring and changes as required. New ventures that reinvent businesses cut their chances of failure by conserving resources and continuing to learn about customers, technology.

But these changes can be expensive if not managed properly. Changing indicates that the original plan was not proper. The startup companies should be like scientists testing hypothesis to find viable solutions. Also, they should be adept at convincing the customers, investors and manages diverse audiences. Companies that endure will be adept at getting stakeholders agrees on the changes. The following strategies to maintain stakeholder support during these changes are 

Focus on the big picture

Entrepreneurs must establish early, their unique, concrete plan that meets a specific need and a specific market. They should have a well-formed product design and market growth plan and profitability. Instead of foCussed solutions, they should have broad umbrella ambitions which would allow changes or corrections if the original assumptions prove wrong.

This requires on to define the product features or functionality broadly early in the project. It should have an emotional appeal and underscore a larger goal. It's better to indicate the destination rather than the roadmap. This doesn't mean that the startups sacrifice credibility and paint a big, broad, abstract picture that encourages the stakeholders to see what they want to see and generate more enthusiasm and support.

However, to satisfy the stakeholders, startups may be too explicit in spelling out their product and roadmap before they are entirely clear. When they change course in the middle they may be seen as inconsistent, confusing and too optimistic. 

Signal continuity

Everyone values consistency and they view inconsistent organisations as less legitimate and ultimately undeserving of their loyalty. However, they may accept deviations if they see it to be in line with the broader goals of the organisation. This link may not be obvious at all times and the startups must make the effort to make the connection clear to maintain credibility.

The linking tactic works better if the overall aim matches the social objective. You can position the changes in the business plan as another way to achieve the main goal committed to the stakeholders. 

Ensure that the new positioning or path after the pivot is not confusing to the stakeholders who originally bought your idea. Also, ensure that there is no confusion among the stakeholders as this could cause the pivot to be misunderstood by some of the stakeholders.

Pivoting away from the overall initial pitch is difficult but is not impossible yo save face and retain stakeholders confidence. However continuous communication and explaining the link to the original However continuous and constant communication to explain the link as well as explaining the broad scope of the original objective can help mitigate the risk of misunderstanding by the stakeholders.

Move quickly but with humility

The startups must move quickly to catch the fleeting opportunities. Resource and time constraints often preclude a more measured approach and swift retreats do not jell with the existing stakeholders who may feel cheated.

Stakeholders are willing to accept if they are advice das to how they will be affected by the pivot and if they see the senior management genuinely concerned about their concerns. They should prepare the stakeholders for the change and show empathy while communicating the reasoning for the change rather than hiding it and introducing it quietly. 

Even though the discussion has centred around startups, it is equally applicable to the established companies. leaders understand that storytelling and sensemaking are important during periods of uncertainty, like what we are facing now with the epidemic. When businesses are being upended and their entire business models are becoming useless, it is especially important to reorient the business and explain and justify the need and the plan for reorientation in detail to the shareholders. This will largely determine their ability to manage and prosper in the reorientation planned.

When It’s Time to Pivot, What’s Your Story?

by Rory McDonald and Robert Bremner

HBR Sep 2020