Like the Titanic, industry giant Blockbuster Video hit the figurative iceberg, realized it was beyond rescue, and closed the final 300 stores.  After viewing the forlorn sight of empty Blockbuster stores in strip malls across the country, many of us were surprised there were still stores left to close. Here’s the chilling message to entrepreneurs everywhere. Whether you are a large corporation, a small business, or an independent professional, the message is the same:  If you let your guard down, it can happen to you.

This event gives us the opportunity to do a reality check about how well we have positioned our own business.  Here are three questions we can ask ourselves to make sure we are keeping our own business on course.

1.  What is it like for my customers, clients, or patients?  How effectively do I monitor and manage their experience?

Customer experience matters from start to finish.  The pleasurable experience of meandering through the aisles of our favorite video store to find unexpected and favorite old movies was sometimes muted by another – Late fees.  So while the initial experience was good, the lasting impression was tainted, even though the fees were our own fault.  Customers, like me, flocked to competitors offering online video opportunities that added convenience while eliminating both guilt and penalty.

2.  Am I watching for trends and obstacles that could help or hinder my business?

Our strategic planning responsibilities include paying attention to factors in the external environment that could impact how we do business.  Blockbuster was too slow to adopt the emerging technology of streaming video and even declined offers to purchase Netflix. The Mayo clinic, among other medical providers, utilizes advanced technology to provide remote medical diagnosis and support. Front Desk Team provides clients with virtual office management, hosted technology, and consulting support.  Did you know that some law firms now offer virtual legal services? There is even a directory of online law firms. How does the ever-changing sea of technology affect your clients and your business?

3.  What are the other trends that will change your customers’ expectations and how you operate?

Competition can come from surprising places.  Blockbuster underestimated the impact of technology changes.  During a Manufacturers’ Alliance meeting several years ago Anita Ryan, then president of the St. Paul Brass and Aluminum Foundry, gave a great example.  In the past, the part of your lawn hose that screws onto the water tap was made of brass.  Now it is made of plastic.  The foundry didn’t assume their only competition existed within the metal manufacturing industry.  They didn’t miss the competition from the plastics industry and adjusted in time.  The foundry was in business before Blockbuster and is in business today.

The old adage says “Expect the best but prepare for the worst.” That seems stark.  Here’s my view of things:  As business leaders we navigate the seas of opportunity while keeping a watchful eye out for icebergs.  That’s what strategic planning is all about.