Beyond Business as Usual
Leading Your Business Through Unprecedented Paradigm Shifts
It’s unlikely anyone is saying it's business as usual these days. For SMEs, the question isn't just about adapting to change; it's about navigating an era of fundamental shifts that demand new approaches to ensure survival and, more importantly, to compete and thrive in that environment. In order to compete and thrive businesses must accommodate completely new paradigms and make paradigm shifts of their own to survive.
We are witnessing two critical paradigms: The Perfect Storm and the Purpose-Performance Paradigm. Let's explore how these impact your business and, more importantly, what actions you can take.
Before we do though, why call it a paradigm shift? To understand why I take this view we have to look back to the aftermath of the financial crisis in 2008/2009 when the B2B technology industry (and consequently many others) saw a paradigm shift:
1. With the commoditisation of products leading to price pressure there was a race to the bottom. To retain customers, companies tried to outcompete each other on price while they waited for the storm to pass. The storm didn't pass.
2. Large companies that relied on service contracts were finding that IT budgets weren't stretching to a never-ending trail of invoices from customers to extract much-needed value from products. They needed to find ways to demonstrate their value in more effective ways.
3. Within their customers, employees began to undermine corporate hardware and software selections by using cheaper, more effective solutions that delivered them the exact outcomes they desired. This was the start of the avalanche.
These tech vendors had to re-evaluate their products or services to find different ways to stand out from their competitors and retain customers. Smaller, more nimble and sometimes new kids on the block were delivering basic products that addressed real business needs and then clawing their way up the capability ladder. They were capturing market share from the incumbents.
The paradigm shift was a change of direction from product and technology led engagement to outcome-led, customer-centric approaches - “jobs to be done”. Where products focused not on the sum of their capabilities but instead on what problems they solve for customers. It doesn’t seem like much but it has led to a revolution in how companies engage with customers, demonstrate value to customers and sell to customers. Entire business models changed, with subscription models becoming the de facto way to retain and grow revenue.
This became known as Customer Success Management in many large companies, although by now, we're accustomed to it in all facets of business. It doesn't seem all that new or unusual. It created a booming investment market where many new "upstart" companies thrived. In fact, investors won't look twice at a startup, for instance, if it doesn't have a Customer Success or product adoption strategy underpinning their business plan. It was a paradigm shift that set the stage for SaaS (Software as a Service) and the ubiquity of subscription business models over perpetual license models. This is all laid out in detail in “B4B -How Technology and Big Data are Reinventing the Customer-supplier Relationship” by Wood, Hewlin & Lah1 With that scene set, let’s look at the paradigm shifts we’re facing today.
The Perfect Storm: A Confluence of Challenges Demanding Action
We've always relied on one constant: change. Over the past 40 to 50 years, industry, technology, and business practices have undergone almost continuous transformation. Each wave of change is followed by another. We've seen advances like mechanisation, automation, global supply chains, the internet, digital revolutions, mobile technology, cloud computing and AI all disrupt the status quo. Business models have evolved into e-commerce and subscription-based services. Each shift presented significant challenges for business leaders.
However, the era we find ourselves in now is different. We are experiencing a "Perfect Storm" where a multitude of formidable challenges are happening simultaneously. These aren't isolated incidents; they're interconnected forces that can rapidly impact your profitability and long-term viability:
Technology Disruption: The sheer scale and pace of technological advancements, from AI and automation to big data, leaves businesses struggling to integrate them effectively and add value. SMEs, in particular, face challenges with the technology literacy gap and keeping pace with competitors.
Talent and Skills Shortages: Attracting and retaining skilled staff, especially in a competitive market where larger employers offer more, is a constant battle. The rise of the gig economy and "conscious quitting" highlight changing employee expectations for meaningful work and flexibility. More about this later.
Economic and Geopolitical Challenges: From inflation and rising operational costs (energy, labour, materials) to geopolitical conflicts and trade disruptions (like Brexit, COVID or trade tariffs), these factors create constant pressure and demand rapid adaptation.
Changing Regulatory and Stakeholder Expectations: Increased compliance needs (e.g., accounting, ESG) and evolving environmental and social justice concerns from customers, employees, and suppliers add layers of complexity. SMEs must balance these demands with daily operations.
Customer Behaviour Shifts: Customers are increasingly aware of sustainability, ethics, and social responsibility when choosing who to do business with. They expect transparency and high levels of service across multiple channels.
Market Disruptions: Shifting markets due to competitor pressure, technology advancements, business model changes or changing customer behaviors can quickly erode your competitive edge. SMEs accounted for 99.8% of all enterprises in 2021 but contributed only 41.5% of total turnover compared to 58.5% by large enterprises, highlighting the intense competitive pressure2.
In isolation, none of these are new. But what makes them a Perfect Storm is that they’re all occurring simultaneously, introducing different complications and challenges almost on a daily basis. This "VUCA" (Volatile, Uncertain, Complex, Ambiguous) environment won’t be addressed by battening down the hatches and waiting for it to pass, it requires a strategic response. Interestingly, this is what academics, governments, the third sector and increasingly businesses are calling “wicked problems”. A "wicked problem" is a complex issue that is extremely difficult or impossible to solve because it has incomplete, contradictory, and constantly changing requirements. These problems lack clear definitions or solutions, and any attempt to address one aspect can create or reveal new issues. (I’ll go into the nuances of wicked problems at another time.)
The Purpose-Performance Paradigm: Beyond Profit Alone
One aspect of the "Perfect Storm," is a second profound paradigm shift that’s taking hold: the Purpose-Performance Paradigm. Existential, geopolitical, environmental, and social threats now hold greater significance for businesses than ever before. Public sentiment is shifting, influenced by events like COVID-19, which catalysed a collective re-evaluation of relationships with lifestyles, workplaces, and communities.
Employees, especially Gen Z and Millennials, are seeking deeper meaning in their work. Stakeholders are no longer content with mere financial performance; they expect businesses to contribute positively to society and the environment. This means needing to sometimes balance performance with purpose. Consider these indicators:
Insurance costs are increasing as billion-dollar economic loss events hit previously unseen highs (66 events in 2023).3
37% of people worldwide believe many companies prioritise higher profits over better customer experience.4
Significant proportions of consumers prioritise transparency, sustainability, and fair trade policies, putting people before profits and employee work-life balance in purchasing decisions5. In fact, 83% of global consumers are concerned about the impact of their behaviours on climate change6.
Clearly, the sentiments and expectations of the workforce, customers and other stakeholders that you rely upon for the success of your business are changing. This is most definitely a risk particularly in consideration of employees.
Actionable Strategies for SME Leaders: Bridging Strategy and Execution
Customers are people, stakeholders are people, and most importantly, employees are the people you rely on most to move your business forward. This is where the opportunity for smaller businesses to become more agile and set themselves up for growth with motivated, and more importantly, capable employees driving the business forward.
The core issue underlying these paradigms is often a disconnected approach to strategy and workforce enablement. To address this and ensure your business doesn't just survive but thrives, consider implementing elements of the Enabling Thriving Business (ETB) Framework. This framework, built from lived experience and academic research, provides a clear roadmap for SME leaders.
Embrace Continuous, Adaptive Strategic Planning: The traditional annual planning cycle is obsolete in today's volatile environment.
Action: Adopt a dynamic process of regular review, adaptation, and refinement. Leverage frameworks like PESTEL analysis and SWOT analysis for environmental scanning. Consider scenario planning to stress-test strategies against multiple plausible futures.
Resource: The World Economic Forum's "Global Risks Report"7 offers insights into critical global uncertainties for scenario planning.
Balance Operational Excellence with Innovation (Organizational Ambidexterity): Most organisations excel at either optimising current operations or innovating for the future. True long-term success demands you do both simultaneously.
Action: Intentionally create structures and processes that support both. Utilise the 3 Horizons Framework (H1: improving current business, H2: extending into adjacent opportunities, H3: creating new opportunities) to allocate resources effectively. Foster strong social connections within and between teams to enable bridging networks.
Resource: Research from the University of Cambridge's Institute for Manufacturing shows that ambidextrous organisations achieve 10% higher revenue growth over a five-year period.
Drive Strategic Cohesion with Objectives and Key Results (OKRs): Vague aspirations won't guide day-to-day decision-making.
Action: Translate your vision into tangible, measurable goals that teams can rally around. Implement the OKR framework (Objectives are aspirational, Key Results are measurable) and ensure employees goals are SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
Empower Autonomous Decision-Making: Centralised decision-making creates bottlenecks and missed opportunities. It holds your business back!
Action: Equip people at all levels with the clarity and confidence to make sound decisions. Define clear "decision rights" using tools like RACI matrices and establish "bounded autonomy," providing freedom within defined frameworks.
Foster Effective Team Collaboration: Siloed teams impede information flow and innovation.
Action: Build bridges between teams and create mechanisms for cross-functional work. Encourage social capital development by fostering trust and reciprocity. Consider Design Thinking to integrate stakeholder perspectives into problem-solving. Well-coordinated, collaborative teams are much more efficient at completing tasks.
Prioritise Business Growth Through Continuous Learning and Strategic Technology Use: Adaptability in your workforce and leveraging technology are non-negotiable.
Action: Foster a "learning organisation" culture where individuals continually enhance their capacity to create desired results. Personalise learning using the 70:20:10 model (70% experiential, 20% social, 10% formal). Strategically adopt AI to improve work quality, reduce administration, and free up time for higher-value activities and employee capability development.
Resource: Organisations with robust learning cultures are 92% more likely to innovate and 37% more productive8.
Engage Stakeholders Continuously: Stakeholder expectations are constantly evolving.
Action: Establish ongoing dialogue with customers, employees, investors, and communities to understand their changing needs. Implement systematic feedback loops like surveys, focus groups, and advisory boards to integrate their insights into strategic decision-making.
The key to long-term competitive advantage for your SME is not just having a vision, but ensuring that your leadership and teams are equipped to execute it effectively.
Ready to Navigate the New Normal?
In today's volatile, uncertain, complex, and ambiguous (VUCA) world, your business faces relentless change. Businesses that delay integrating strategy with workforce enablement risk being outpaced by more adaptive competitors.
My expertise is in helping teams clarify direction, build internal capability, and execute effectively. I don't offer theory; I offer a working framework built from a combination of lived experience and academic and industry research. My work is shaped by the belief that capability and clarity—when combined—are the real drivers of resilience and growth in a volatile market.
Are you ready to transform strategic intent into real-world impact? Let's start a conversation about how we can build a future-proof business that thrives, no matter what challenges arise.
Download the ETB Framework whitepaper or schedule a no-obligation conversation to discuss your unique challenges.
B4B - How Technology and Big Data are Reinventing the Customer-supplier Relationship (Wood, Hewlin & Lah, 2013)
Business in Ireland 2021 – Detailed Results (Central Statistics Office, 2024)
Climate and Catastrophe Insight (Aon, 2024)
Accenture Life Trends 2025 (Accenture, 2025)
An update on European consumer sentiment (McKinsey, 2025)
Consumers Are the Key to Taking Green Mainstream (Boston Consulting Group, 2022)
Global Risks Report (World Economic Forum, 2025)