The Art of The Pivot

The Art of The Pivot

Sarah Schaaf, a 3x founder and CEO and current General Partner at advisory firm Enjoy The Work,  she works with CEO's of venture-backed startups from seed stage to pre-IPO. Between her experience as a founder and working with venture-backed CEOs, she shares her framework for success when executing a pivot.

Pivoting 101

• Pivoting is an essential part of the startup journey, and a successful pivot should be seen as a badge of honor.
• The Pivot Pyramid is an essential framework when thinking about how you are pivoting your business. You may think of a pivot only as a major change to your business, but a pivot can be a change of a matter of degrees or miles. At the bottom of the pyramid, changing your customer requires a much larger change to your business, and most likely includes a pivot to the problem, solution, tech and growth.At the top of the pyramid, a pivot in your growth strategy can be much less complex, and may require smaller changes to accomplish.

Slide from Enjoy The Work’s Pivot framework. Based on the Pivot Pyramid by Selcuk Atli. More from Selcuk  on the Pivot Pyramid here.

Data is Power

• Use data to make informed decisions for change. Following the data can either back up your assumptions, or lead you in new directions.
• Being too attached to an idea without the data to back it up can stifle or kill your business.
• Don't rely solely on conviction and assumptions. Your experience does not equal your customer's experience.
• You should be curious, adaptable, and willing to follow the data.
• Remember: Data should inform decision making, but it's important to have a framework and cadence for measuring and analyzing the right metrics.

Leadership & Communication During a Pivot

• Effective communication and storytelling are important in conveying the mission and vision of the company during a pivot.
• Feedback and the ability to adapt are key qualities for founders navigating the challenges of pivoting.
• Startups need different types of team members at different stages: commandos for early stage, soldiers for growth, and police officers for late stage. When hiring, it's important to assess whether candidates have the right mindset and experience for the stage of the company.Make sure you find the people who are willing to be in the trenches with you, rather than be discouraged by change.
• Pivots should be framed as opportunities for growth and fulfillment of your company's mission, rather than as failures or wasted time.

For more on the Art of the Pivot and Sarah’s founder journey, watch the full episode here.

Founded in 2015, Enjoy The Work is a San Francisco-based startup advisory firm serving startup founders and CEOs worldwide. Learn more about working with their advisory team here.

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