Roy Osing
17 Dec 2019

This is how being the same is deadly

BE DiFFERENT or be dead.

The implication is that if your organization is not different, sooner or later it will be irrelevant and it will die.

Sameness kills.

The path to organizational death is predictable when you look like everyone else.

Sales revenue decline because the value proposition of your organization is limp it has no distinctive substance and potential customers can’t figure out why they should buy from you and not your competitors.

People stop buying because the company's offerings are no longer relevant; they no longer serve a compelling need.
They lose their edge that was the original reason people bought from them and not their competition. Their product portfolio is now common and indistinguishable from that offered by others.

Customers migrate away, looking for more value for their money; to get their specific needs satisfied.

Price cutting is invoked as the salvation, believing that lower prices will increase sales volumes and boost revenues. The reality is, however, that with a limp value proposition, driving prices down also drives revenue down.

With revenues declining, management decrees that costs be reduced to preserve operating margins.
Across-the-board cost cutting is ordered as a balanced approach which means customer serving functions get whacked; fewer frontline people are expected to handle the higher volume of calls that results from reducing prices.

Customer service suffers and customers get increasingly more dissatisfied.

They look for alternative suppliers. Degenerating service removes any reason for customers to stay loyal.
Customers find it easy to switch suppliers since so many alternatives present themselves; competitors swoop down to catch the vulnerable prey.

Revenues spiral downward; margins are squeezed; more costs are sliced from company operations; customers are casualties.

It's a relentless cycle.

Leadership looks for a short term strategy to reverse the trend; they are forced to abandon a longer term growth strategy.

The organization may look to partnerships as a fast and easy way to expand their customer base and bolster their revenue line. This process burns valuable time and people resources and is limited by financial capabilities due to shrinking margins and an unhealthy balance sheet.

The search for partners shifts priorities
 away from fixing the @home value proposition issues to assessing potential partner candidates and determining how to integrate the winner into the overall operations and culture of the suitor.

Revenues continue to decline; confidence erodes.

The cycle becomes entrenched; the organization explores selling off assets to improve financial results.

No investments are made in solving the endemic value proposition issue they face.

It's not a matter IF they will die; it's a question of WHEN it will happen - how long can they hang on.

When customers start to leave, they are telling you that you are becoming irrelevant; you don't have any uniqueness relative to your competitors.

You are the SAME as them.

Fix THAT problem and the revenue line will take care of itself.


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