Business Flexibility: 6 Ways to Embrace Its Competitive Advantage

In a world which makes it so easy for us to be flexible, I am still amazed how elusive business flexibility can be for some small businesses.

Here’s an example of what I mean:

Recently, I bought a service which required the company to come to my house to provide it.

In a conversation with their technician when he arrived, I realized that for just $50.00 more, I could expand the service in a way that would really benefit me.

That’s when my nightmare began.

The young man could not make the decision.

The existing contract did not cover what I wanted and since he was not prepared to risk his job, he had to call his boss.

 No problem.

But in the age of endless methods of communicating, he could not reach his boss.

To make matters worse, there seemed to be 3 other layers of “management” between him and his boss and none of them could help!

Wuhloss man!  Are these people for real?!

As you can expect, I cancelled the entire contract and ask for a refund of my money immediately…if not sooner!

But I was really concerned for this business, and I couldn’t help myself wondering:

Have these people ever heard of business flexibility?

Do small business owners know how much money they are leaving on the table by being so inflexible?

What can I do to help?

Well…I can give you 8 ways you can embrace business flexibility and make it a competitive advantage.

But first…

What is business flexibility?

Business flexibility typically refers to the ability of a business to make changes quickly and efficiently in response to specific situations or needs.

These situations or needs can arise equally from customers needs or changes in the internal or external environment of the business.  

Essentially, it requires having systems and processes in place that can be easily adjusted or scaled as required.

This should be the essence of small business success. The very basis of its competitive advantage.

6 ways to embrace business flexibility for competitive advantage

You will find that time and time again, the most successful flexible businesses or organizations don’t just react. They anticipate changes and position themselves to take advantage of these before their competitors can respond.

These 8 strategies will help you to be one of those businesses.

1. Combine flexibility with adaptability

There is a tendency to think of “flexibility” and “adaptability” as interchangeable words, both meaning the same thing.

Yes…you can describe them as related business concepts, but when you apply them to your business, you will understand the difference in meaning and application. 

Think of flexibility as the ability to bend without breaking – which means you can quickly and easily make adjustments within your existing frameworks or systems. 

For example you can adjust your pricing strategy temporarily or implement flexible working hours to accommodate rush orders.

On the other hand, adaptability tends to be strategic and more long term. It is when you transform your business in response to, let’s say, new market or legislative conditions.

For example, you might shift your business model in light of the rapid onslaught of AI or develop entirely new product lines in response to emerging market trends.

By combining business flexibility with adaptability, you will be flexible enough to handle day-to-day changes while maintaining the ability to adapt, if you have to face significant disruption.

This makes for a powerful competitive advantage!

2. Locate “decision-solutions” close to the problem

Do you remember in my opening scenario, the technician couldn’t make a decision?

If his boss had a business model that allowed him to make appropriate decisions to solve simple problems as they occur, this would make such a difference in his business.

Here is an example of what I mean…

In my country, the local electric company allows their technicians to decide at which point they will disconnect (or not) a delinquent customer.

The technician can allow the the customer the time to pay their bill and show them the evidence, instead of immediately disconnecting them.

This works for both customer and the power company.

3. Operate with a flat organisational structure for business flexibility

I am sometime amazed by the structure which some small business owners implement in their businesses.

Have you ever seen any of the following structures?

1. A small business that has a structure with more “chiefs” than “Indians” and is so top heavy that it remains in place only in complete defiance of gravity?

2. Or one with a structure made up of several layers of “one-person” management levels?

3. Or how about a small company which has a decision-making process that requires each decision to be voted on individually at the 3-man top level?

Business flexibility requires you to have the flattest organisational structure possible. You know what I mean…one with the minimum number of layers between you and your frontline employees.

Check out some of the benefits of such a structure:

1. Faster decision-making – such as in the case describe at #2 above.

2. Improved communication – direct Information flows between you and your employees, leading to faster implementation of solutions.

3. Greater employee empowerment – Employees typically have more autonomy and responsibility, which can increase engagement and job satisfaction.

4. Reduced overhead costs – Fewer managers means lower salary expenses for middle management positions.

5. Stronger team cohesion – With less hierarchy, employees may feel more comfortable collaborating across functions and sharing ideas openly.

4. Deliberately hire with Business Flexibility in mind

If you’re to be competitive in your market segment or niche, business flexibility should be uppermost in your mind, even as you hire employees.

You will need employees who can adapt to changing conditions, embrace uncertainty, and help your business to pivot when needed.

Here’s how to approach hiring with flexibility in mind.

First, you have to identify the specific flexible mindsets and behaviors you need for your business. At the minimum, these could include:

Adaptability: Ability to adjust quickly to new situations

Problem-solving: Finding creative solutions with limited resources

Learning agility: Quickly acquiring new skills and knowledge

Comfort with ambiguity: Functioning effectively despite uncertainty

Resilience: Bouncing back from setbacks

Then you have to engage in effective hiring practices. Here are a few to start you off:

1. Behavioral interviewing: Asking candidates about times they’ve had to adapt to change, work outside their comfort zone, or learn something new quickly.

2. Scenario-based questions: Presenting hypothetical situations where flexibility would be needed and ask candidates how they’d respond.

3. Assessment of past transitions: Looking for candidates who have successfully navigated different roles, industries, or challenging environments.

4. Cultural alignment: discovering if candidates share your values around innovation and adaptation.

If you can get these right, you will place your business on the path to flexibility.

5. Diversify your supply chain to guarantee business flexibility

Supply chain diversification is essential for your business resilience. Nothing will threaten or destroy your business than having a single supplier, especially for your critical supplies.

Here’s how to effectively diversify your supply chain:

1. Expand your supplier base by identifying and qualifying multiple suppliers for your critical materials/components. Also create a balance between local, regional, and global suppliers and establish relationships with suppliers of varying sizes.

2. Be sure to have sourcing options for critical inventories 

3. Periodically examine you supply chain to identify vulnerabilities

4. Constantly scan your various environments for any issues likely to impact your supply chain

So my point is: diversifying your supply chain is such a platform from which to compete!

6. Strengthen the connection between your team and your customer

As important as it is to business success, strengthening the connection between your team and your customers is not sufficiently used as a strategy for business flexibility.

I want to prevent you from falling into that trap so here are a few effective ways to strengthen these relationships:

Listen actively to your customers

1. Implement regular customer feedback channels (surveys, interviews, focus groups)
2. Monitor social media mentions and reviews
3. Schedule periodic check-in calls with key accounts

Empower your team to take action

1. Give team members authority to resolve customer issues quickly
2. Establish clear escalation protocols for complex problems
3. Recognize and reward customer-centric behaviors

Make It Personal

1. Personalize communications whenever possible
2. Remember and acknowledge important events (anniversaries, milestones)
3. Send handwritten notes or thoughtful gifts for special occasions

Be Transparent and Authentic

1. Admit mistakes and show how you’re addressing them
2. Share your company’s values and how they align with customer needs
3. Provide behind-the-scenes glimpses into your operations

Start with this list but be sure to add your own strategies.

Your next “business flexibility” step…

I believe that by now, I have convinced you of at least one thing:

One of the critical success factors and distinguishing features of any small business should be its business flexibility or agility. It really is an awesome competitive advantage!

So I want you to take a good long look at your business and ask yourself:

Do I have an “SB” as in Small Business which can be flexible and bend without breaking?

Or do I have an “SB” as in Small Bureaucracy which is held in place by complex ways of doing things?

Either way, finding the answer should take up a whole lot of your vacant headspace.

But whatever the answer you now have help to move you forward.

You see, business owners fear flexibility and you really don’t have to.

I am excited about the changes you can make. If you need help, please…contact us at ITDS