12. Should You Pivot? When, How and Why to Change Direction

Questions and frameworks to help assess when a shift is truly needed

1. Introduction

The idea of a “pivot” gets thrown around a lot in business. Sometimes it means a bold reinvention. Sometimes it’s a subtle change in focus. In tough markets, many SME owners ask themselves - should I shift direction, or stay the course?

This article, part of Pillar 4 - Strategic Adaptation, explores when to pivot, how to do it wisely and how to avoid mistaking short-term stress for strategic failure. It offers a clear framework to help you assess whether change is needed, or whether you're just facing temporary friction.

2. Representative Narrative

Hemi runs a small adventure tourism business in Taranaki. With international travel still slow and domestic bookings unpredictable, he’s questioning the sustainability of his model. He’s considered switching to local transport services or selling experience packages to corporate teams.

But he’s unsure whether these are smart moves or signs of panic. He doesn’t want to abandon years of effort, but he also doesn’t want to stand still.

He called John Luxton from RegenerationHQ, who had worked with him on product development pre-COVID. John listened, then said, “Let’s figure out whether you need a full pivot, or just a smart adjustment.”

3. Recommended Actions

• Pause and clarify the problem
  Is the issue one of demand, delivery, cost structure or marketing? A pivot should solve a core issue, not just respond to a passing dip.

• Use a structured decision filter
  Ask -

1. Has the market permanently changed?

2. Are customer needs shifting?

3. Is my current model still viable in 12–18 months?

4. Can I adapt without losing my strengths?

• Distinguish between a pivot and an evolution
  A pivot is a shift in core product, market or model. An evolution is a refinement. Not every tough patch means a full redesign.

• Test before committing
  Run a pilot, prototype or short campaign to gather real feedback. Use data to guide your next step.

• Don’t pivot out of panic
  Make sure the decision is strategic, not reactive. John often says, “If you can’t clearly say what the pivot solves, you’re not ready.”

4. Expected Outcomes as Narrative

Hemi worked through a decision matrix with John. They identified that his bookings were down, but customer satisfaction was still high. The issue wasn’t the product - it was access and awareness.

Instead of a full pivot, Hemi launched a smaller trial offering midweek packages to local schools and businesses. He partnered with a local café to bundle meals into the experience. The new offer used existing assets and added a new revenue stream without changing the core business.

He kept his team, protected his brand and found fresh energy through action, not reinvention.

5. Red Flags & Mitigating Strategies

Red Flag 1 - Changing direction without data
Mitigation - Run a pilot, survey customers or test small before investing big

Red Flag 2 - Abandoning core strengths for an unfamiliar market
Mitigation - Leverage what you do well - build on it, don’t erase it

Red Flag 3 - Making permanent changes in response to temporary pain
Mitigation - Set a clear timeframe and criteria before locking in a pivot

6. HR Best Practice

Pivots affect people. Even a small change can create uncertainty if not handled clearly.

• Share the reasons behind any shift - what’s changing, what’s staying

• Involve your team in the planning phase - they often see practical angles

• Avoid abrupt restructuring unless absolutely necessary

• Keep people informed with regular updates during a trial or pilot

John often reminds leaders that when people feel part of the solution, they bring more energy and insight - even in times of change.

7. Psychological Perspective

Uncertainty creates urgency, but also anxiety. The pressure to act can blur thinking. Some owners feel shame about needing to change direction. Others feel paralysed by too many options.

Talking to someone neutral like John, helps separate emotion from strategy. The key is not to avoid risk, but to understand which risks are worth taking and which aren’t yours to carry.

8. Recommended Owner's Mindset

Adopt a mindset of disciplined curiosity. Be open to change but not swept up by it. Let your questions guide the pace and your purpose guide the path.

9. Reflective Questions for the Owner

• Is the problem I’m trying to solve short-term or structural?

• What has changed in my customer’s world - not just mine?

• Am I walking away from something too quickly?

• What are my business’s core strengths and are they still valued?

• Have I asked for honest input from someone who isn’t emotionally involved?

10. Suggested Ongoing Actions

• Keep a simple pivot decision checklist on hand

• Review customer behaviour every quarter - trends are clues

• Create low-risk pilots to test new ideas without overcommitting

• Check in with a trusted advisor like John Luxton before making high-impact changes

• Document what you learn, good or bad, after each test

Critical Takeaway - A smart pivot solves the right problem - not just the one that feels loudest today.

If you’d like a confidential, free of charge, free of obligation conversation about your business, here’s how to get me.

📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
🌐 Contact Form www.regenerationhq.co.nz/contact

If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview

🔹 RegenerationHQ Ltd - Business Problems Solved Sensibly.
Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.