You may have heard of the recent shakeup in the pizza world resulting in John Schnatter, the founder and CEO of Papa Johns, resigning. As a result, many high-profile organizations dropped Papa Johns’ as a sponsor and the company saw a significant drop in stock price. This is the kind of opportunity competitors crave and can use to seize the day…if they are Agile enough.
I came across this interesting article and wanted to take a minute to think a little deeper on the business agility of these companies.
Reading between the lines, we can easily see that Domino’s has been working to become more Agile over the past 10 years to recover their market position and is now poised to make a huge leap. Meanwhile Pizza Hut admits to being slow to adapt its technology and approach, so it continues to rely on traditional approaches and has chosen to take over costly sponsorships with NCAA and NFL (vacated from Papa John’s). Slow to adapt and spending huge on marketing, Pizza Hut is also repositioning itself as “affordable”… also known as “competing on cost”, the last resort of a company unable to compete on value or innovation!
Domino’s as a seemingly more Agile pizza company, has been able to capitalize on their competitors’ mistake. According to iris-worldwide.com, Domino’s has optimized for Agility by focusing on customer value delivery and adaptability. They have reinvented themselves in the model of a technology company rather than just a pizza maker. According to Forbes, 50% (400 of 800) of the Domino’s employees at headquarters work in software and analytics!
This is a truly great story of Agility! Companies from all industries can learn from this example.
Be prepared to seize the day. Learn more about how your company can get started on Agility.