Destructive obsession…

March 2, 2010 · 6 comments

It’s the stuff that makes me want to pull my hair out and bang my head against a wall.

Don’t get me wrong…I LOVE American Express’ OPEN Forum for small business. However, just because a well-respected company such as AMEX is sponsoring the site doesn’t mean the advice on it is worthwhile for small — or ANY — size company.

Take, for example, a post several of you have forwarded to me — as incredulous as I when it comes to the advice it presents. It’s titled “How to Stay Ahead of the Competition” written by Adam Hartung, CEO of SparkPartners and author of a book called, “Create Marketplace Disruption.”

I’m certain he’s a terrific guy — however, it would be difficult for me to disagree more with what he advocates in this post.

He writes: “To succeed in today’s rapidly changing world you have to focus more on competitors…

Uh…NO! As I point out in “Collapse of Distinction,” a primary problem is that organizations and professionals have focused on competitors…when they should be focusing upon CUSTOMERS!

GM went to hell because they worried more about Ford and Toyota than what you wanted to drive. When they finally started listening and engaging customers, they started building some pretty terrific cars. Unfortunately, it’s taking the general public a while to catch up — but, we’ll get there. (GM is reporting improved sales this very day!)

Oh…here’s another of Mr. Hartung’s “Top Ten” — “Don’t ask customers for insight. Customers mostly tell you that they want better, faster, and cheaper. Following customer advice further locks you into the old business and leaves you wide open to competitor attack.”

Uh…no, again. Customers with whom you only have surface-level, transactional encounters will tell you the junk about “better, faster, and cheaper.”

However, when you have created relationships with the people and organizations doing business with you, the insight you can obtain from them is truly remarkable.

Don’t get me wrong — you can’t determine organizational strategy solely based upon customer surveys. However, to make decisions in a vacuum without customer input is ridiculous.

Some of his points are valid: Avoiding cost cutting, running lots of tests, and acquiring lots of outside advice are vitally important for all of us.

However, his final point drives home our divergent perspectives. Hartung writes, “Target your actions at competitors. Don’t just do what you want to do, take actions intended to hurt your competitor. Never miss an opportunity to ruin your competitor’s day.”

I truly disagree.

If we are so intent on ruining our competition’s day, our approach will undoubtably be sensed by our customers. Why not be intent, instead, on MAKING our customer’s days? Let’s focus on taking actions designed to THRILL our customers.

If we take that approach…we’re on our way to creating the kind of distinction that truly disrupts markets.

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  • http://RestaurantWorx.com Jeffrey Summers

    Couldn’t agree more Scott. I’ve coached forever that our only competition is the last experience we gave our guests.

  • http://www.doitbestcorp.com Bob Taylor

    Scott

    Absolutely agree!

    A good friend of mine that I grew up sailing with characterized folks who practiced that philosophy as “last leg losers”. They were the individuals who would get out in front in a race because they were actually pretty good sailors, but then they would be so obsessed about who was behind them and what they were doing, that all they would do is react to them instead of just sailing their own race. And, sure enough, by the last leg they were no longer in front because they had forgotten to continue concentrating on the things that got them there in the first place. Far too many businesses get in trouble doing the exact same thing.

    Looking forward to seeing you at the Do it Best Market in May.

    Regards

    Bob

  • http://www.cmgpromos.com Dwayne Long

    WOW, I’m floored by his opinion. Am I wrong to be somewhat angered by that display of arrogance?

    Okay calming down and returning back to reality, let’s look beyond the companies involved at the customer. I see the customer in a lose/lose situation if you follow Mr. Hartung’s advice. Then what happens to that customer, they become tenative to do business. I know dog fighting is illegal, but we all know it has happened. Imagine any human being between two dogs fighting each other to the degree of a dog fight for that human’s scratch on the ears. There is little chance that human caught in the middle will not become wounded in the fight, and if they survive it, how quickly will they want to reach out and scratch any dogs ears.

    I already spend too much time helping and counseling customers who have been treated wrong or advised wrong by others in my industry, I don’t need to spend time putting bandages on their wounds too.

    Dwayne

  • http://scottmckain.com Scott McKain

    Dwayne — you make a great point — customers wounded by this approach will then bring those scars to us when they do business with our respective organizations. I share your response…and disgust…to the approach of not listening to customers. Thanks…

  • http://scottmckain.com Scott McKain

    Bob –

    First off, thank you so much for taking time to share your valuable insight here! And…I absolutely love the “last leg loser” analogy. It’s hard to win the race when you focus on your competitor, rather than your own efforts.

    See you soon at the Do It Best Market — thanks for having me back.

    Scott

  • http://scottmckain.com Scott McKain

    Great response…it’s important to emphasize! “Our only competition is the last experience WE gave our guests.”

    That’s really terrific!

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