Your company’s sustainable, competitive advantage when responding to marketplace changes is based on which of the following?
a. Business Vision
b. Business Plan
c. Financial resources
d. Customer relationships
e. Product differentiation
f. Technology efficiencies/effectiveness
g. None of the above
Answer: G
Items A through F can provide you with a place to start and the balance and stability you need to maintain. But do any of these ensure quality and speed of response to marketplace change?
Think about it this way. Product life cycles have significantly shortened, speed of information is almost instantaneous, mass customization has grown to just about cover everything, we have contstant connectivity. Given this context, while “A-F” are critical in defining and shaping a company, none of them (even when taken collectively) are sufficient to enable a company to strategically respond to change.
After being in the coach’s seat for all these years, I have come to the conclusion that the ONE most potent factor in achieving a sustained competitive advantage is this:
A company’s strategic response (both quality and speed) is directly correlated to how well conflict is managed at the top.
So important, yet so often ineptly managed.
I see this play out over and over again…leaders who do not manage internal conflict well at all. The result? When conflict at the top is ignored or poorly handled, the company becomes exceedingly more passionate with and about itself than it does with their competitors.
Over time, if leaders and their employee’s passion becomes more about them and their company, you end up eroding the effectiveness of “A-F,” no matter how well developed, meaningful and useful they were from the start.
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Thanks for the great post. I agree with the position that the strategic response correlates to how conflict is managed. It’s interesting to me that conflict can be centered around any of the bases that you mentioned(A-F). It seems that if there is any conflict within an organization that it’s caused by unclear vision, values and mission, as well as competition for resources, power imbalances and abuses, and technological or other structural deficiencies. So it might be possible to say that conflict management of all the above is what gives an organization the competitive edge.