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Know Thy Differentiation

Posted by Tony Morse on May 20, 2009 at May 20, 2009 2:55 PM

Google the phrase "Know Thy Self" and you will discover many blogs discussing Socrates' advice. Rare, however, are those that discuss what it means for an organization to know itself.

As a firm, we have worked through Communicating for Action discovery and planning sessions with hundreds of companies to ensure they understand the people critical to their success and how to engage them in conversations that will help achieve their business goals. Naturally, through this process we uncover the many ways each company can differentiate itself. So far, this isn't rocket science.

However, lately it seems more companies are trying to look ALIKE ... literally ignoring (or forgetting) the uniqueness each posses and the value of that differentiation. One telecommunications company sales person said that they tend to introduce themselves by naming their better-known competitors.

Which would you rather hear from a company that wants to do business with you: "we do the same thing as XYZ company" OR "a lot of people think that we're like XYZ company, but we actually do quite a few things differently, like...."

What makes you different? Are those things that you do every day? Why don't you tell people about those traits more often?

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Comments

Hey Tony, how much of this do you think is due to the economic uncertainties we're all experiencing? It seems many companies and teams within companies have gone into a self-preservation mode where it may be considered risky to differentiate.

Posted by: Bryan at May 20, 2009 3:44 PM

Hey Tony, how much of this do you think is due to the economic uncertainties we're all experiencing? It seems many companies and teams within companies have gone into a self-preservation mode where it may be considered risky to differentiate.

Posted by: Bryan at May 20, 2009 3:45 PM

Bryan - Interesting thought.

I wonder if this has the opposite effect, though, particularly in the long-term. If businesses don't set themselves apart through differentiation, then establishing value can be difficult and it seems like they resolve to competing on price. They may see a rise in the near term, but rarely sustain that increase. Once things recover, do they end up with opposing messages when they realize that they need to differentiate from their competitors?

Posted by: Tony Morse at May 21, 2009 6:28 AM

Yes, I certainly agree Tony. I think the failure to effectively differentiate due to fear or preservation mode is extremely dangerous and will likely result in long-term damage as you note.

Posted by: Bryan at May 21, 2009 1:39 PM

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