When the market changes
Or when you are riding a dead horse, get off
The Scrum Master plays a crucial role in IT and modern project management. As freelancers in this field, we bear a special responsibility: not only for the success of the teams in our projects but also for the adaptability and long-term success of our own business activities.
But what happens when the market in which we operate changes? How do we recognize these changes in time, and how can we prepare ourselves for them?
I have experienced market changes twice now as a freelancer. The first time was in 2013. At that time, I worked as a freelance SAP CRM Consultant. While I initially found projects with ease, by mid-2013, it was nearly impossible. I had tried everything — utilizing the usual project platforms, reaching out to former colleagues, cold calling, etc. — all without success. It wasn’t that there was no longer a demand for CRM consultants, but instead that they were no longer being sought freelance. At that time, I decided to transition to permanent employment despite the challenge of giving up my independence.
Now, or rather since 2020, I am in a similar situation as a freelance Scrum Master. Project acquisition has become lengthy and laborious. In 2016, when I applied for a project tender, the probability of receiving the contract was >90%, but since 2020, I have had to apply to 60–100 project tenders to secure a contract. And it isn’t improving.
While the situation in 2013 caught me completely off guard, I am better prepared now.
Early Detection of Market Changes
It is important to recognize changes early to avoid being caught off guard by market changes. Early detection of market changes requires a systematic and proactive approach. Here are some specific steps that help me identify potential changes in the market environment early:
- Analyzing industry trends: Regularly scanning market studies and project situations released by platforms like Freelancermap, Brainville, and Freelance.de. We should pay particular attention to patterns that could indicate changes in demand for our services, such as the number of reported projects and available freelancers.
- Soliciting feedback from customers and partners: Our customers and partners are valuable sources of information about how their needs and requirements are changing. Regular conversations can provide valuable insights and alert us to potential changes in the market early on.
- Monitoring economic indicators: Monitoring relevant economic indicators and macroeconomic trends can help us better understand the overall economic environment and identify potential impacts on our market early on. That can include tracking indicators such as unemployment, insolvencies, inflation, or gross domestic product.
- News from professional associations: Subscribing to newsletters from professional associations such as VGSD or DBITS lets us stay informed about political developments that may directly impact the market situation. These organizations often provide valuable insights and analyses on legislative changes, regulatory developments, and other political events affecting our industry. By staying updated regularly, we can identify potential impacts on our business early and respond accordingly.
By combining these points, we can get a good picture of the current market situation and identify potential changes early. That allows us to proactively respond to these changes and adjust our business accordingly before it’s too late.
Preparation for Changes
Preparation for changes is crucial for the long-term sustainability of our business as freelance Scrum Masters. Here are some additional steps I regularly take to be well-prepared:
- Continuous education: As a Scrum Master, we must constantly expand and improve our knowledge and skills. By participating in training, conferences, workshops, and other educational activities, we stay up to date on new trends, methods, and best practices in our field and remain competitive. Additionally, this helps to expand our network.
I particularly appreciate training/education in entirely different areas, as it helps broaden one’s horizons and develop new ideas. - Personal retrospectives: Regular retrospectives are essential for agile teams and invaluable for us as Scrum Masters. By regularly pausing and reflecting, we can recognize our strengths and weaknesses, evaluate our performance, and work on improvements. That enables us to be more flexible and adaptable and respond quickly to changes.
- Diversification of offerings: To protect ourselves against sudden changes in the market, we should diversify our service offerings. That may involve offering additional services, targeting new audiences, or entering new industries and markets. By broadening our customer base and offering a more diverse range of services, we reduce our dependence on specific clients or projects and increase our flexibility.
- Networking and relationship building: A solid professional network and good relationships with customers, partners, and other stakeholders are crucial for the long-term success of our business. By actively networking, exchanging experiences, and nurturing relationships, we can discover new business opportunities and receive support and resources when needed. A robust professional community can help us support each other, exchange knowledge, and identify new opportunities.
By taking these measures and regularly updating them, we can better prepare for changes and lead our business to long-term success. Conducting our retrospectives is particularly important as they help us evaluate our performance, learn from experiences, and continuously improve.
Strategies and Tips for Dealing with Changes
When we recognize that the market environment is changing, the following strategies can help:
- Diversification of offerings: Of course, you should have started before you saw any signs of a change in the market. But when the change is noticeable, it is time to invest even more effort in diversification. In addition to expanding our service portfolio, we can also consider extending our expertise to new areas or industries. For example, alongside our work as Scrum Masters, we can offer training, coaching, or consulting services in related areas such as agile transformation, organizational development, or project management. Furthermore, we can consider building a side business from our hobbies or passions. For instance, if we — like me — have a dog, we can delve into dog nutrition and offer pet nutrition consultations alongside our main work. This diversification allows us to diversify our income sources and spread our risks.
- Agility and flexibility: Agility is crucial in a constantly changing environment. After all, we are experts in this field 😉. We must also be willing to adapt quickly and seize new opportunities. Agile principles and methods can help us remain flexible and quickly adapt to changing requirements. We should be open to new ideas and approaches and be willing to adjust our strategies and tactics as circumstances change.
- Customer orientation: Our customers are key to our business’s success. Therefore, it is important to work closely with them to understand their needs and requirements and adjust our offerings accordingly. We should proactively respond to feedback and provide solutions that meet their needs. By being customer-oriented, we can build long-term relationships and create customer loyalty, which in turn helps support our business even in challenging times.
They can also help us identify new opportunities in different areas or permanent positions. - Investment in relationships: In addition to our customers, our relationships with other freelancers and partners, such as consulting firms and staffing agencies, are crucial to the success of our business. We should nurture these relationships and actively network to discover new business opportunities and receive support when needed. A strong professional community can help us support each other, exchange knowledge, and identify new opportunities. Of course, you should have established these relationships well in advance. In times of crisis, however, communication can be intensified once again.
Since 2020, I have been focusing on diversification. In addition to my main activities as a Scrum Master and Agile Coach, I am predominantly active in online marketing. That allows me to handle the current market situation much more calmly.
If we realize that our current activity has nothing more to gain due to market conditions, we should admit that the horse is dead and dismount. Ideally, we have already built one or two side businesses that we can pursue even more intensively.
Share your experiences and tips in the comments! What strategies have helped you prepare for changes in the market environment? What challenges have you faced, and how have you overcome them? Let’s learn from each other and support each other to lead our businesses successfully.
