We all know our business goal is to create above-average results. Yet, much of what we’re trained to do in business is sure not to achieve these results.
In the August 24 issue of FORTUNE you’ll find the following analysis of modern marketing http://www.fortune.com/fortune/valuedriven/0,15704,686868,00.html :
“And here is one of the key insights of that science: In category after category, the market leaders are virtually identical. “Virtually” is important. They aren’t absolutely identical. They’re just very, very close. Whether it’s potato chips, toothpaste, disposable diapers, or any of hundreds of other products, the pattern holds. You can tell the difference between Coke and Pepsi if you care about soft drinks, but the difference is minuscule. That’s because endless research has established what consumers like most, and straying too far from those specs is asking for failure.”
What we’re missing from much management science today, including marketing, is the capability to create marketplace disruptions. It’s only by creating market disruptions that companies can achieve competitive advantage. Me-too strategies lead to me-too returns, until the inevitable price war breaks out when one competitor tries to buy share causing everyone to go from mediocre to below-market shareholder returns.
Leaders today need to unlock the breakthroughs inside their companies. They need to encourage breakthrough thinking among the employees. They must overcome the “me too” approaches taught too often in business school, and practiced too often in business. Lead your competition in breakthroughs and you’ll lead them in returns as well.
