What Can You Do When the Plan Isn't Working?
Every leader knows that even the most robust strategy doesn’t guarantee success. Markets shift. Competitors evolve. Internal dynamics present unforeseen challenges. What separates high-performing organizations from their struggling counterparts isn’t whether they face adversity—it’s how they respond when the plan veers off course.
Recognizing when to pivot versus staying the course is one of the most critical decisions leaders can make. A poorly timed pivot risks abandoning promising efforts prematurely, while doubling down on an ineffective plan can waste precious time and resources. Navigating this decision requires clear-eyed evaluation, data-driven insights, and a willingness to act decisively.
This post explores how to identify when it’s time to pivot, how to evaluate your current strategy, and the steps to successfully shift directions without derailing your organization’s momentum.
Recognizing When the Plan Isn’t Working
When plans falter, the signs are not always glaring. Leaders often find themselves second-guessing whether a setback is a temporary obstacle or evidence of a deeper issue. Understanding the key indicators of an underperforming strategy is essential.
Key Signs a Pivot May Be Necessary
Performance Metrics Are Consistently Falling Short. Data doesn’t lie. If your team is regularly missing key performance indicators (KPIs)—whether it’s revenue targets, customer acquisition goals, or operational benchmarks—this signals that the strategy’s execution or design may be flawed.
The Competitive Landscape Has Shifted. Disruptions in your industry, whether due to technological advancements or market entrants, can render previous strategies obsolete. For example, ride-hailing apps like Uber permanently altered the transportation sector, leaving traditional taxi companies struggling to keep pace.
Feedback Highlights Continuing Misalignment. Whether from customers, employees, or stakeholders, persistent feedback indicating dissatisfaction or misalignment should prompt a reevaluation of strategy. Ignoring this feedback risks alienating both internal and external audiences.
Resource Strain Is Unsustainable. If achieving results requires disproportionate time, budget, or human resources, the strategy may not be scalable or viable long term. Teams bogged down by inefficiencies or stretched to capacity are clear indicators that adjustments are needed.
The Strategy Lacks Agility. A plan that cannot respond to evolving priorities or changes in the market will quickly become outdated. If your organization is rigidly adhering to an ineffective course, operational flexibility needs to take center stage.
The danger lies in rationalizing these warning signs or mistaking them for merely temporary setbacks. Left unchecked, they exacerbate problems and lock organizations into cycles of underperformance.
Evaluating the Effectiveness of Your Plan
Once you’ve identified potential issues, the next step is assessing whether your plan truly requires a pivot. Strategic evaluation must be rooted in data, objectivity, and a structured approach.
Start with the Data. Metrics are the clearest lens through which to evaluate effectiveness. Review quantitative and qualitative data related to your plan’s goals. Are sales stagnant despite increased marketing spend? Is customer churn rising despite investments in user experience? Key areas to analyze include: Sales and revenue trends; Customer satisfaction scores (e.g., Net Promoter Score); Cost of acquisition or resource efficiency; or Market share relative to competitors. Data equips leaders to differentiate between short-term setbacks, which may resolve with persistence, and enduring structural issues.
Assess External Factors. Context matters. Examine whether macroeconomic, industry, or regulatory changes are impacting your outcomes. A strategy that worked last year may no longer align with today’s realities. Example: Kodak’s refusal to pivot its business model as digital photography gained prominence illustrates how failing to address technological shifts can lead to decline.
Evaluate Alignment with Long-Term Goals. Even if a plan appears moderately successful, it’s critical to consider whether its results align with your overarching vision. A profitable short-term strategy may detract from long-term objectives if misaligned. Example: When Starbucks realized its rapid expansion diluted its brand identity and customer experience, the company slowed its growth to refocus on quality and employee training, prioritizing long-term sustainability over short-term profits.
Solicit Input from Stakeholders. Engaging employees, customers, and partners can offer invaluable perspectives on what’s working and what isn’t. Inclusive decision-making avoids tunnel vision and encourages creative input. Pro Tip: Ask front-line employees if they’re encountering the same obstacles repeatedly. Their input often surfaces inefficiencies that leadership might overlook.
Conduct a Risk/Reward Analysis. Quantify the risks of continuing with your plan versus shifting strategies. Include potential costs, resource demands, and opportunity losses. This analysis sharpens clarity around immediate priorities and effective resource allocation.
How to Pivot Effectively
Once the decision to pivot has been made, how it is executed will determine whether it leads to revitalized success or deeper challenges.
Define the Pivot with Precision. A decisive pivot isn’t about abandoning goals but rather rethinking the approach to achieve them. Start by clearly defining what needs to change and why. Ask: Is this a shift in product, services, or target audience?; Are adjustments needed in execution rather than overall objectives? Example of Precision: Instagram originally launched as a location-based networking app before pivoting to focus on photo-sharing. Their adjusted focus transformed the platform into a global leader.
Communicate with Transparency. Pivots are inherently disruptive. Open communication ensures stakeholder, employee, and customer buy-in during the transition. Address concerns, articulate the rationale behind the pivot, and set clear expectations for the path ahead. Remember, consistent messaging builds trust, even during uncertainty.
Reallocate Resources Strategically. A successful pivot requires aligning the organization’s focus and resources with the new strategy. Redirect budgets, talent, and tools to maximize impact in your adjusted plan. Strategic Reallocation Example: When Netflix transitioned from DVD rentals to streaming, its pivot was underpinned by robust investments in digital infrastructure and partnerships with Hollywood studios.
Pilot and Learn. Launch your pivot in phases rather than committing to a dramatic overhaul immediately. Use initial results as a springboard to refine your approach and improve execution. Example of Incremental Change: Amazon introduced its AWS cloud computing services through select beta partnerships before scaling fully, ensuring strong feedback loops.
Double Down When Results Validate the Pivot. Once a pivot shows positive momentum, commit fully. Avoid half measures or reverting to old strategies. Success hinges on reinforcing confidence in the new direction.
The Risks of Staying the Course
On the flip side, failing to pivot when it’s clear the plan isn’t working can result in missed opportunities, rising costs, and even organizational failure. Examples abound of companies that stayed the course with damaging results:
Blockbuster: Ignored the rise of on-demand entertainment despite evident consumer interest, enabling Netflix to dominate the market.
BlackBerry: Failed to adapt as touchscreens redefined the smartphone experience, ultimately leading to their fall from dominance.
These cases underscore the need for timely, decisive actions in today’s fast-moving business landscape.
Final Thoughts
Leadership is tested most profoundly when plans begin to falter. Recognizing inflection points, evaluating your path with clarity, and courageously pivoting when needed could be the difference between faltering and thriving. By leveraging data, fostering collaboration, and committing to decisive action, leaders can transform obstacles into opportunities.
The key takeaway? While staying the course demands resilience, pivoting requires vision. Leaders who master both will guide their organizations toward sustained, adaptive success in the face of change.