THE COMPETITION ARE NOT THE 'BAD GUYS'

Over the years one of the questions which I always ask after a sales pitch is "Why would I chose your company over the competition?" If the presenter begins by saying "Our competition is very good, but let me talk to you about what differentiates us -- how we work to ensure customer satisfaction, our drive to excellence, our responsiveness, our innovative approach, our team etc." they get a gold star. If the sales person begins by disparaging the competition, then there is a little black mark that goes against them. Doesn't mean they won't get the business, but they are disadvantaged by that remark.

Some business leaders chose to paint the competition as Darth Vader's "evil empire" amongst their teams. I have worked in some companies that do this. In one case I was told that as a senior executive I shouldn't wear red because that was the primary colour of the primary competitor. Really? By wearing red was I channelling the competition and giving them some superpowers over our business outcome?

But that is the ludicrous extremes that this type of approach takes. The rallying cry to the corporate masses is to "crush", "beat", "pulverize" etc., the competition, to see all those that function for the profitability of the competitor as the enemy, to create a "we are the good guys" cult, seems to be what some leaders believe is necessary to drive success.

I beg to differ.

Oh, I'm not saying it won't work for a period of time. But having lived this, I will tell you that the negativity derived from such an approach cannot help but leech out to other aspects of the business. For example it is when the procurement folk believe it is ok to negotiate with a "2X4", and using a "most-favoured nations" clause etc., is justifiable in the pursuit of getting a leg-up on the "bad guys." They forget to focus on what's best for their company, just looking to disadvantage the competition.

This "macho" approach to business is out-dated. Engaging is sports and war imagery is not good for the soul and inevitably not good for the business. I'm not saying everyone needs to sit around with their competition, hold hands and sing "Kumbaya", but what I am saying is the vitriol spewed sometimes at other companies delivering the same products and services as you are is not deserved and long term not healthy for your business.

You need to understand and know what your competition is doing. That only makes sense. Taking your eye off this ball, as well as marketplace trends, can inevitably lead to a company's demise as evidenced with Blackberry, Kodak and Blockbuster, to name a few. 

The leaders of corporations should focus their teams on  delivering excellence, creating positive work environments within their four walls, fostering innovation, seeking input across stakeholder groups, etc. Winning becomes a byproduct of great leadership. Focusing on "defeating" the competition results in blinders being placed on your team and is hardly inspirational. 

And quite honestly, in my experience, when the latter becomes woven into the fabric of the business, it inevitably has real issues at both the top-line and bottom-line. Note that I say inevitably, because it doesn't happen immediately. And it is probably because of the latter fact that some errantly believe it is a good way to run a business.