This month an iconic US office supply company Staples Inc., announced it will close as many as 12 percent (225) of its North American stores and cut as much as $500 million in costs.
The plans to cut costs come from both competitive pressures from online retailers, as well as general underperformance.
Here are 5 key things the news teaches millennials, as well as all professionals about how to approach business and life:
1. Loyalty Is A False Security
Many of the people who will be jobless or job-searching following the store closures may have been with Staples 5,10,15 or even 20+ years. Decades ago, this type of longevity correlated with a sense of loyalty to the business.
However when the axe comes down, your personal feelings of loyalty and belief that you've served well so you should be protected, aren't going to matter.
You can't rely on good will and loyalty to secure your work or financial future, you can only rely on you and your ability to foresee industry direction and add value.
2. Innovate At All Times
One of the biggest pieces of criticism about the Staples news, is the sheer size of the shake up. It brings on questions about why things had to get to such a magnitude before action was taken, which may have significantly altered the landscape.
As a Millennial or professional, you can't afford to ever rest on your laurels. Treat every day as going from hero to zero, and continuously look for ways to streamline processes, reduce cost, or increase revenue.
Ask yourself everyday "how can I add more value to myself and my company".
If you are adding tangible, visible value, you at least mitigate your risk of being affected.
3. Management Is Dying
The traditional version of management I believe is well and truly dying. By traditional, I mean government-like layers of management, which simply result in a longer time for decisions, communication red tape, and quite simply a top heavy organisation with not enough people executing.
Not only will this apply to Staples, but so too for Zappos, who recently announced plans to strip management out of their business.
It simply shows that if you aren't in a position where you are making a quantifiable, accountable impact on your business, then you are in trouble.
4. Create and Convey Quantifiable Value
Staples like most businesses, were likely scarred by people and projects which felt that just getting the job done was enough.
In fact, not even innovating is enough unless it has a quantifiable value to yourself and the business.
Whenever you think about a project to begin, a sale to be made, or an action to take, make sure you quantify the impact. For example "I believe this project will reduce cost in this area by 10%", and make sure this equates to enough to cover the costs - not, "I think we should put in this nice software to make the process better".
This does two things:
a. It presents business value. You can measure in advance, and after, whether the benefit was achieved and that you are moving in the right direction.
b. It is a great selling point for you at promotion time or when looking at new jobs. Wouldn't you rather have a CV which says "I was able to cut costs by 10%, or $500,000, within my first year", rather than "I was responsible for putting in a software project".
5. Have Industry Vision, and Stay Relevant
When it comes to looking at where you want to work, it pays to do regular research and to think with vision about your industry. To maximize your value and income, look for industries with high visionary growth/sustainability and avoid ones where the writing is on the wall. Or, if you like a particular industry, simply think about where the trends are going.
For growth examples, think about:
a. Move into an industry like Life Sciences/ Pharmaceuticals which is ever growing (people will keep living and getting older)
b. Move toward areas with high online growth that is exposing traditional businesses in that area
For examples of staying relevant:
a. Think back to Kodak prior to their demise - people worked there thinking they were in the 'photo/polaroid' business. However, if they realized they were actually in the 'memories' business, then they might have moved on to other companies with technologies like online or digital printing.
b. Think then about current industries - for example, airline employees don't work for an airline company, they work for a transportation company. Maybe in a few years they should be moving to Elon Musk's Hyperloop (high speed trains), or join a teleportation company - to grow with the industry before the tool which provides the transport outcome becomes obsolete.
Leigh Fletcher is a millennial sales executive, blogger and entrepreneur, with a passion for sales improvement strategies.
Leigh writes practical articles with a focus on leveraging personal experience to help others learn new skills in selling or simply refine existing skills. You can learn more at Leigh-Fletcher.com, and like below to keep up with his strategies.