Book Review: Prepare for turbulence, the new norm in business

The authors of "Chaotics" present a cogent case for possessing acute business acumen in these turbulent times. And the turbulence may not be over any time soon, as troubling levels of disruption becomes the new normal for business.

"Chaotics" is not a doomsday book; the authors contend that the "age of turbulence" offers as much opportunity as it does risk.

Much of the reader value comes via a challenge to the historical mindset of small and larger organizations alike. In addition, copious prescient insights are presented for making healthy changes to marketing, planning, strategy and management.

Personally, I had more than 30 takeaways. Here are a few:

• The world has entered a new economic stage. Some of the drivers of this ongoing worldwide change are globalization, demographical trends, the decay of international institutions and the geopolitics of energy.

• Today's economy, with its increased turbulence, is markedly different. Gone are the normal times of up and down business cycles, which left business strategy and marketing actions virtually unchallenged.

• In the future, beyond the normality of business-as-usual, leaders will need to develop competency at responding to major and minor disturbances to their business planning.

• Disruptive trends to watch for include: cost structures accelerating and/or declining almost overnight; increased opportunities for new competitors in almost any field; reluctance by customers to increase capital expenditures; increased reward to those businesses that customers feel safe doing business with and realize true value from; technological game-changers; and the emergence of global companies looking to absorb struggling Western brands.

• A common question many leaders ask during these turbulent times is whether or not they should invest during a recession. The answer depends on, and an organization should take into consideration, if it has three things going for it: the marketing or sales expertise to take new ground, a strong culture that fits well with the strategy they are employing, and whether or not the company has the resources to pull it off.

• Avoid across-the-board cuts. This is almost always harmful in the long-run. Instead, look at focused cuts that align with your strengths, opportunities and strategies for the long-term.

• There are two big marketing mistakes companies often make. First, trying to broaden products or services to appeal to a wider customer base; it's risky because it may not work - and you may lose loyal customers. Second, cutting marketing dollars; that makes you more vulnerable to stronger competitors.

• Every company needs an early warning system. Since turbulence can come at any time or from any place, leaders need to detect early signs of threat or trouble. The authors advocate the use of key scenarios (best, worst and most likely) with a corresponding strategy/response for each scenario. Key areas to watch are changes to customers; channels; competitors; complement or substitute products; emerging technologies; political, social and economic forces; influencers and shapers.

• Mindsets need to change: from marketers thinking about customers to everyone in the company thinking about customers; from selling to everyone who will buy to serving well-defined market segments; from organizing by products to organizing by customer segments; from focusing on the financial scorecard to also focusing on the marketing scorecard; and from using many suppliers to working with fewer, more partner-oriented suppliers.

The authors hit a home run with this book. Reader value is off the charts.Springfield-based consultant Mark Holmes speaks nationally on increasing employee and customer retention and improving employee performance. He is the author of "Wooing Customers Back" and "The People Keeper," and his ideas have been featured in the Wall Street Journal and on Fox Business Network.