Access Exclusive, Trusted HR News & Resources >>> New Professional Members Save $20 Today
Sustainable design practices lead to happy employees—and healthy businesses.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Set yourself up for success with virtual SHRM-CP/SHRM-SCP Certification Prep Seminars.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Tips for HR professionals savvy in Business Acumen
After 146 years in entertainment, Ringling Bros. and Barnum & Bailey circus, "The Greatest Show on Earth," will perform for the last time in May. For those with fond memories of the circus, mixed emotions arise: sadness, surprise, confusion. Meanwhile, others, including animal rights activists, rejoice. From a business point of view, what lessons can HR professionals learn when a business model becomes obsolete?
Ringling Bros. and Barnum & Bailey executives have offered several explanations, including high operating costs, declining ticket sales and individuals' decreasing attention spans. One spokesman said the circus was "not a viable business model." For the Business Acumen-savvy, this means that the circus had reached the decline phase of the business life cycle.
That life cycle is defined by the intersection of revenue and time. A business proceeds from introduction to growth, then maturity, and finally to its decline. The maturity stage is where optimal market awareness and saturation are achieved and the peak point of revenue is reached. To avoid moving into the decline stage, a business must introduce new products or services and change its business model.
Various businesses have fallen victim to remaining stuck in an outdated model, and the reasons vary. We used to head to Blockbuster for the latest movie on video, snacking on Funyuns and Push-Ups, remembering to rewind the tape before driving back to return it within 48 hours. Redbox and Netflix disrupted that brick-and-mortar model, and Blockbuster failed to adapt to changes in technology. Now we stream movies over the Internet as we sit on the couch and eat kale chips.
Competition can also threaten a business model. Borders Books was outwitted by its direct competitor, Barnes & Noble, which, after identifying Amazon.com and other online retailers as a threat, recognized the need for e-books and e-commerce and adapted its model to those markets. It developed its own e-reader (the Nook), put Starbucks cafes in its stores, and eschewed store locations not in or near large cities.
What can HR professionals do to prevent their organization's business model from reaching the decline phase? Here are a few tips:
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies