With
competition between organizations becoming ever more sophisticated, it is
imperative for those aspiring to greatness to build a brand that differentiates
the organization from the competition or risk either commoditization or worse,
extinction.
For too many, when asked what it is they sell, this question
will unfortunately lead to a list or description of the products or services
their organization provides. The reality is that your customers can get similar
products or services from any number of other suppliers. When we reduce what we
sell to merely being products or services, we reduce our selves to offering little
more than a commodity; and as a commodity you will compete largely based on
price.
Competing on price is a losing proposition. There will
always be a competitor who will supply a similar product or service for less;
perhaps they are willing to accept a reduced margin or they want to gain market
share, but there will always be someone willing to do it for less.
Warren Buffet once said, the one thing every great
organization does is build a moat around themselves. They create a barrier
that protects them from their competitors by differentiating themselves from
their competitors. They do this by building a brand that sets them apart. The
most effective way to accomplish this is to understand what your customers are
really buying from you and ensure your organization provides it every time, without
fail. Your customers will be able to depend on you to do what you say you will
do – every time.
In order to achieve a level of consistency that your
customers will come to depend upon, and recommend you for, an organization must
install processes that are robust enough and have the management capital (leadership’s
time, budget and enthusiasm) to ensure continuous improvement becomes part of
the culture. This is not easy work. For most organizations, it necessitates a
cultural transformation that transcends every level of the organization and
engages employees in the execution of this critical work. But the return on
this commitment far exceeds the investment: capable and engaged employees will
ultimately delight your customers. Customers, who will buy more, cost less to
serve, be less price sensitive and will serve as ambassadors for your
organization…an organization that successfully differentiates itself from its
competitors.
Good intentions alone do not constitute a plan of action.
Sustainable improvement in the employee - customer interaction requires
disciplined local action coupled with a company wide commitment to changing how
employees are recruited, positioned in roles, rewarded and recognized, and
importantly, how they are managed.
The
challenge for any organization, regardless of their products or services, is to
create an environment where employees are engaged in the work they do and feel
compelled to take ownership of each transaction by doing what they believe to
be right for the customer. When an organization has a culture that fosters
empowerment, they instill pride in their workforce, reduce turnover and
generate customer loyalty….and that will be their moat.
