It’s funny how the strategic plans for most direct competitors of businesses are identical in most cases. Everyone determines correctly which client sectors are growing, services rising in demand and which dimensions of competition clients and customers demand – client service or innovation.
But if every business in an industry knows what needs to be done to create more value, what is competition really about then? Competition comes down to who can best complete the work needed to be accomplished.
Setting Yourselves Apart from the Competition
How you determine which competitor can best complete the work that needs to be done to fulfill customer needs, generate revenue and create value for your business comes down to a set of closely-related concepts: energy, drive, enthusiasm, excitement, commitment, passion and ambition.
Where these concepts exists so does the discipline to execute them effectively and outperform the competition. The business owner and/or the manager’s role are to be net creators of enthusiasm, passion and ambition. Too often the opposite happens, where they destroy excitement instead of generating it.
As a manager, if you only talk about finances (status of billings, how are the receivables), you can flatten the spirit of everyone in the office. Not to say you can’t discuss these things because they’re important. But this should not be the ONLY topic discussed.
A manager’s job is to inspire, support, praise, encourage, critique, confront and comfort individuals and groups of people in the business.
Opting with the Right Strategy
Every strategy implemented by a business at some point or another will involve a tradeoff between short-term cash and executing the strategy. You have to be willing to make difficult choices and believe in the strategy you put in place if you want to experience the benefits. You have to be able and willing to practice what you preach even when it’s not convenient if you want to create value for when the day comes to sell your business.
Most people don’t believe their business owners and managers want them as employees to act strategically. If the decision has to be made between the strategy and short-term cash under pressure, management will go for cash every time most people feel. The message from a business’ management is clear usually: strategy can wait until tomorrow. Why strive for excellence if you’re only told to be competent? Therefore, leaders have to be a source of encouragement in order for the strategy to be executed, instead of the biggest obstacle.
If you’re willing to sacrifice value to earn short-term cash, you won’t create a market reputation for superior quality. You have to commit yourself to the mentality a excellent reputation is worth more in the long term than incremental cash. You want to practice your vision, mission and strategy to obtain excellence, not just preach it.
Being a Smart Manager
A great manager will give their employees the confidence to achieve greater success, fulfillment, accomplishment and profits. Although change is constant, it’s also challenging for most if not frightening because most people work well within their comfort zone, reluctant to abandon the old habits they have brought to their current success. As a manager, you have to be demanding but supportive – a positive, supportive style. You must be patient as well. Rome wasn’t built in a day, but it was being built over time and completed with patience. The same must apply to managing a business. Remember, people will stand by you and display the excellence through the strategy in place if you practice what you preach as a manager and owner.