Today's Black Executive· column

The Art of the Pivot: When to Change Direction in Business

How the most successful entrepreneurs know when to stay the course and when to pivot

The Art of the Pivot: When to Change Direction in Business

Startup culture has glamorized the pivot. The word conjures images of nimble founders rapidly iterating toward breakthrough. The reality is more complex — and the stakes are much higher.

What a Pivot Actually Is

A pivot is a fundamental change in business strategy in response to evidence that the current approach is not working. It is not a minor tactical adjustment. It is a strategic decision to change your customer, your product, your revenue model, or your market.

When to Pivot

The Signals That Say It's Time

  • Revenue that is flat or declining despite strong execution
  • Customers who use your product differently than you intended, and getting better results
  • A larger opportunity that your current model cannot capture
  • Fundamental market changes that render your initial thesis invalid

When Not to Pivot

Many entrepreneurs pivot prematurely — abandoning strategies before they have had time to work. The difference between a pivot and a panic is data. Before you pivot, exhaust every optimization within your current strategy.

Executing the Pivot Well

Communicate with Your Team First

Your team deserves to hear about major strategic changes directly from you, with context and conviction. A poorly communicated pivot produces talent departures.

Honor Your Existing Commitments

Exiting current customer commitments carelessly destroys trust and reputation. Transition customers thoughtfully even as you change direction.

Move with Urgency Once Decided

Half-pivots are the most dangerous pivots. Once you have decided to change direction, move fully and quickly.

Topics

Entrepreneurship
Business Strategy
Pivoting

Share this article