The challenge of leaders in this era is to manage rapid changes that never happen before such as, economic situation, society, technology, natural disaster and pandemic. Leaders with vision will be able to cope with changes and see opportunities in the midst of uncertainty; it’s like a GPS leading an organization to the right direction. What type of Mindset and qualification that organizational leaders should have in order to overcome the new changing world? The NIA-SCB Innovation Based Enterprise (IBE) III Disruptive Business Innovation is the project that NIA Academy; National Innovation Agency, cooperates with SCB to arrange for SMEs through Project based learning conducted by Khun Apiwut Pimolsaengsuriya, Managing Director, Slingshot Group Thailand.

SWEET SPOT – The secret code of success

Khun Apiwut states that the key element of success consists of 3 factors.

1.   Mindset: is a set of thoughts, beliefs and attitudes of an individual.

2.   Skill Set: is a skill that a person needed or has developed to accomplish a task or a given function, in order to achieve goal or success.

3.   Tool Set: is a technology that helps speed up an individual or a business to be successful faster.

Success derives from the intersection of 3 above-mentioned factors and then becomes Sweet Spot. Thus, if we want ourselves and our business to accomplish, we should look back to check our mindset, whether we have enough mindset or how tool or technology can support us. In training course, Khun Apiwut talks specifically about Mindset through case study, and the attendants analyze and share their thoughts. There’s no ultimate formula in running the business; therefore, there should be some ways to study and apply to

the business that we’re doing. As the global context changes, things will never be the same. Operating the business or working nowadays are tremendously different from the last 5 years.

Say goodbye to routine job and enter Gig Workforce

The future company won’t need to own permanent employees, its status is to be temporary owner (employer) which is called Gig Workforce. Khun Apiwut shares an example that the employers in the past are not pleased when employees resigned or took some part-time jobs because they wanted to own lifelong employees. Anyway, things have changed over time. Today, the new generation no longer wants to stick with full-time job permanently but enjoys taking a second or third job at the same time. Consequently, some companies may hire their employees for 3 days and employees can spend another 2 days working on anything they like. New generations want to have their own business such as, Startup, Youtuber, Online seller, but still need stable income and have time to do other job. They mostly enter Gig Workplace which is different from Freelance. Gig Workforce is more than Freelance as it’s not just to finish one piece of job and leave. Gig Workplace is similar to full-time job as employees will be continually hired but employers allow them to find and work on some other jobs. Gig Workforce is more prevalent now so entrepreneurs have to understand how the world has changed, what is the attitude of new generation, and what are new hiring trends.

What is the difference between Change vs Transformation?

We are now hearing the word Transformation more often. How is it different from Change? Khun Apiwut states that Change is to make something different but in the old world such as, the bank shifts service at its branches to service through Mobile Banking. That means the bank still provides the same service but only the channel is changed. While Transformation is to change the pattern of organization such as, SCB X is the transformation of bank pattern to a parent company but it still serves the old business that is to be the intermediary bank. However, SCB X subsidiary company is not a transformation but it’s the upper level called Game Changer which its pattern, method, thoughts are changed. For instance, there were separate devices like camera, video camera and iPod in the old days while now the iPhone collaborates all phone functions in one mobile phone. That’s a Game Changer. Besides, mobile phones in the past got their features from the manufacturers while iPhone offers App Store allowing users to change its features more than just a mobile phone. That’s also a Game Changer!

Another example is Tutorial school which its business model is to selling content. If we shift offline teaching to online, it’s a change because we still sell content but only the channel is changed. Or, if the content is changed for sale or take a job as content design, that will be Transformation because the service is changed but the same business model is used. Unlike Khan Academy, an online tutorial school that produces content but not for sale. The school changes a new business model and makes money from subscription and advertising. That’s called a Game Changer as playing method and process are changed. Therefore, when talking about Disruption, it doesn’t happen from Change or Transform of competitors or other company but from Game Changer’s new business model. Thus, a concern is to realize whether our business has Game Changer or new business model which can change ways to making money. Apart from Change and Transform, entrepreneurs may need to seek a chance to be Game Changer. Even though it’s hard to do so; but if you can do it, you’ll become a game controller and don’t have to fight anymore.

Case Study: the business operation of FOREVER21 vs Reformation

FOREVER21: The business is started from a South Korean couple who migrated to the U.S. At first, they made a living by doing labor work and then noticed that the Rich mostly owned clothing business. Later, they invested in clothing business imported from Korea called Fashion21 at Los Angeles, California. In 1987¸the brand name was changed to FOREVER21 and experienced tremendous growth over the first 10 years, with an expansion to 40 branches. The key success was branch expansion, large space, cheap price, fast fashion style, and plenty of staff. Sales hit US$ 1 billion in 2005, branch available in 40,000 square feet in 2006, business expansion overseas in 2010. And due to emerging of online business at that time, the company added online channel but kept expanding branches and stocked many products. In 2018, branches were reduced and all branches worldwide were closed down. The business finally declared bankruptcy in 2019.

Reformation: The business is founded by Yael Aflalo, a woman whose passion is to operate a sustainable fashion business. When visiting China, she experienced that part of manufacturing process in textile business destroyed environment so she saw an opportunity to create a new positioning of environmental fashion business. Besides, most top fashion brands share similar concept; large shop, all colors and sizes are available, numerous branches, separate online and offline channels. On the other hand, Reformation thinks differently. The business doesn’t focus on size and number of branches, clothes not available in all colors and sizes, creating user experience by technology, using online along with offline to solve buyer Pain Points. Online buyers can’t touch real clothes or try on them while offline buyers have to travel to the shops. For example, customers who enter the shop will see some size of clothes, cutting, and cloth texture. And then they can pick the clothes online from a large monitor in the shop. Once customers click the products, the shop will arrange a fitting room with selected clothes hanging in there. The fitting room will be exclusively provided in a large room equipped with plenty options of music, the room light can be adjusted to both day and night tone to suit customer occasion. If customers are not pleased with trial clothes, they can make a new choice online. Staff will hang new clothes in the wardrobe which doors can be opened in both sides. One side is for staff to hang the clothes for customers and the other for customers to take the clothes and try on. The wardrobe is operated by Open – Closed Innovation so that its doors never open at the same time. Once the order is made, customers can make online payment right away without seeing the staff. The concept to think outside the box enhances customers to experience the feeling of online together with offline purchasing. As a result, sales have grown exponentially and the brand quickly gains high popularity in the U.S. Khun Apiwut says that Reformation has changed the way of thinking, service pattern, and game playing. It’s wise that entrepreneurs in fashion business keep an eye on Reformation whether they’ll become Game Changer in the future market. Referring to the case study of FOREVER21 vs Reformation, it’s founded that traditional success may not guarantee further success anymore. Let’s see how the 3 following factors can help you attain business accomplishment.

      1.   Strategy: Strategies, Goals and Methods to achieve success

      2.   Leaders: Organizational leaders

      3.   Culture: Organizational culture. There’s a saying that “Culture Eat Strategy for Breakfast”. No matter how well you plan but the organizational culture, thought process, and organizational beliefs are not harmonized with the business strategies, there’s a rare opportunity for those strategies to bring success.

SAT Leader vs ACT Leader

SAT Leader is a Traditional leader who uses strategies to manage the business focusing on growth such as, sales volume, organizational size, number of branches, etc. This type of leader is likely to exercise authority over subordinates when making decisions. The organizational culture is an individual works independently, employees tend to have repulsive characters, and employees feel attached to the same success (Toxic).

ACT Leader is a Contemporary leader who uses a combination strategy. The leader will communicate, explain about goals and strategies to employees so everyone will see the same picture (Articulate), and focus on cooperation or business partner (Connect) because it’s better to succeed as a team than individual. The organizational culture is a need to build reliability, working trustworthy, and the leader should empower employees to solve problems or make decisions.

6 Characteristics of a great leader

    1.   Uncharted Explorer: An explorer who is bold to be a Game Changer, always love thinking, doing and trying new things.

    2.   Success Warrior: A warrior who stays hungry for success and puts hard effort to achieve goal.

    3.   Empathic Communicator: A communicator who wants others to understand goal setting.

    4.   Synergetic Winner: A team builder. The leader can’t work alone and will need teamwork to strive for success.

    5.   Diversity Promoter: A multi-purpose managing person who believes that a good teamwork should consist of a wide variety of skills; otherwise, the team will fail.

    6.   Torch Bearer: A person who is able to pass on success from one generation to the next.

To achieve success, the leaders in this era must change from being SAT Leader to ACT Leader as the world nowadays has changed rapidly. Here is the Mindset summary that new gen leaders must possess; well-rounded, fast-paced, vision, new strategy thinker, effective communicator, demonstrating goal to all employees for common understanding, empowering employees to solve problems and make decisions, and working as a team towards company success.

Source: NIA|SCB Innovation Based Enterprise (IBE) III Disruptive Business Innovation Training Course, conducted by Khun Apiwut Pimolsaengsuriya, SLINGSHOT Group Thailand, December 7, 2021