Pivot

Pivot is a term used in business to describe the process of reconsidering your product, service, strategy, or focus to gain greater success. A pivot occurs when a company decides to take a new strategy on achieving its objectives, or when the current strategy is no longer yielding the appropriate results.

A pivot often involves drastically altering the focus of a business and taking on an entirely new direction. During a pivot, the company may adjust the target market, the offering, the core offering, the product line, the customer service, or any other element that directly influences the success of the company. It is a risk-taking strategy, because a company must approach the pivot with specific objectives in mind. With proper execution and careful strategy, a pivot can pay off exponentially.

Pivoting can be a part of continuous improvement. An incremental improvement in one area may not be the only solution to move the business forward. Another way to stay ahead of the competition is to make radical changes to the product or focus while keeping the core principles of the company intact, which can help the business grow in new directions.

An example of a pivot would be a company whose core offering is a web-based retail service. After careful analysis, the company realizes that the service is not performing as desired and decides to pivot to an e-commerce platform which will enable them to better reach their target audience. The company takes into consideration all factors such as marketing, design, customer service, and payment models in order to make the pivot successful. After the pivot has been executed, the company notices a drastic improvement in performance. The company has now created a core offering that is more relevant to its target audience and is better positioned to achieve its objectives.