What ultimately counts in business is how good your products, services and people are. Right?
No, that’s not what ultimately counts. What ultimately counts is how good your customers think your products, services and people are. Right?
No, that’s not what ultimately counts. What ultimately counts is how good your customers think your products, services and people are versus how good they think your competitors’ products, services and people are. Right?
Right. It’s about competitive triangulation – the triangle that connects you, your competitors and your customers. What ultimately counts is the perceived value gap between you and your competitors from the perspective of your customers.
Too many organizations approach strategy with an internal focus: What should we do better? What better things should we do? Some go further and include the voice of the customer: What does the customer want and need? How does the customer view us? The most successful organizations approach strategy from a competitive context: How much value does the customer think we provide compared to our competitors? How are the customer’s value drivers changing?
You can be very good and still lose business if you’re not thinking competitively. Strategy is about competing. So compete.
Your thoughts?
Michael
