Scalability: Built on Sameness or Differentiation?
Have you ever noticed what a company does as soon as it's ready to scale?
They look at how OTHER companies have scaled, and try to copy it.
And when it doesn't work, they wonder where they went wrong.
A while back, I wrote an article called Scalability vs. People in the Workplace (you can find the article here) based on the first key of scaling found in the book Scaling Up by Vern Harnish. No doubt a book that MANY companies have picked up on their scaling journey.
Today, I want to talk about the second key of scaling:
Creating a TRULY DIFFERENTIATED Strategy.
Before we get started, let's take a look at some definitions.
Setting the Stage
Let's start with the definition of "differentiate" on two different levels:
to recognize or ascertain what makes someone or something different, and
to make or become different in the process of growth or development.
Both of these definitions are relevant in the scaling use case.
Firstly, we need to KNOW what makes us different.
Then we need to actively BECOME different in the marketplace via our strategy.
Now, let's look at the definition of "strategy": a plan of action or policy designed to achieve a major or overall aim.
This is speaking to our DESTINATION as a company.
You'd be surprised how many companies actually know where they are going. We create KPI's and target sales metrics, but if we don't have a WHY associated with those goals, they come and go, and come and go, and companies wonder why they get stuck treading water 🤔
Ok, with these definitions in mind, let's get to it! How can we create a differentiated strategy and not get sucked into copying what another company has done?
Know Your Core
As stated in Scaling Up, "Successful athletes need a strong core - or midsection - to provide overall stability, power, and control. The same is true for growth firms. Without a strong core, the organization risks instability from cultural challenges, loss of focus, disengagement, and lack of heart as it scales up."
Here's the interesting part about knowing your core...most companies DON'T have good clarity on what this is at the beginning.
Why?
Because the founder of the organization shows up with their personal values and personality. Then, they attract more people who are like them, who are aligned with what the business is doing.
The company, in the early days, is a REFLECTION of the personal brand of the owner. And in my personal brand coaching experience, very few people KNOW with clarity what that consists of.
There's also a second challenge...
As the company grows, it starts being influenced by OTHER personal brands as well. So now, we're not just talking about a single organism. We're looking at an ecosystem as a singular entity. That's the business brand.
Let's bring this back to the athlete example. Let's say your leadership team is a basketball team, all aligned on winning the championship.
With THAT combination of people and skills, there's a certain way YOUR team can win the championship.
Maybe you're FASTER as a team and can out run everyone
Maybe you're TALLER as a team and can shoot over everyone
Maybe you're MORE BALANCED as a team and can score from anywhere
There isn't a RIGHT way to win the championship.
There's YOUR way to win the championship.
So, what strengths do YOUR peeps have? Your strategy needs to be based on that 💡
Warning: If you're attempting to build your business off someone else's template, you need to look at whether their team had the EXACT same strengths as your current team. If not, that's break point # 1.
Know Your Purpose
So, if your people are the inputs into your machine - the fuel for your rocket ship let's say - you also need the vehicle.
The vehicle is the Purpose of your organization. Your big WHY.
Since Simon Sinek came on the scene, more and more companies have been exploring the concept of their why. Companies are asking themselves questions like:
Why does what we do matter?
What difference are we making in the world?
Would our customers (or the world) miss us if we weren't around?
What is unique about our business?
How has our business evolved?
What do we believe in, as a business?
Answering these questions is a good start. Sadly, in my experience, the answers generally get generated in a one-off management team event, end up in some documentation somewhere, and never see the light of day with the team.
That's not going to cut it, if you want to scale.
A powerful purpose is tied to why the company was started in the first place. And I'm going bold here to say, if you started your company, "just to make money", that's not going to be scalable ⛔
Let's look at some examples:
Apple: create products that enrich people's daily lives
Disney: entertain & inspire people through the power of storytelling
3M: use science to improve lives and solve the world's toughest challenges
Starbucks: inspire and nurture the human spirit - one cup at a time
The direction inspires the action, and how we go there.
Let's compare Disney and Starbucks, both of which speak to inspiring people. Do both of those companies inspire people the same way? Absolutely not.
They have their unique way of inspiring people.
So, not only do they know their purpose. But they found their unique way of getting there. The power of a strong Core and Purpose combined 💖
Warning: notice how the purpose isn't a dollar value? Your Purpose isn't either. Focusing on results without the inputs does NOT lead to scalability.
Know Your Destination
Ok, so now that we have a vehicle and some fuel, we can talk about where we want to go.
Yes, I said where we WANT to go.
Because there isn't just ONE place all businesses are going 💡
When you look at your Core and Purpose, it likely indicates somewhere you're going. Based on those unique inputs.
And similar to the conversation about Purpose, a financial goal is NOT your destination. Because as soon as you get there, you're going to set a higher goal.
Your destination is what Scaling Up refers to as a Big Hairy Audacious Goal, or BHAG®. "The 10- to 25-year goal that provides constant context for all the decisions made throughout the organization."
As in, 25 years from now, where do we want to be? How will we have made the difference we want to make while staying true to ourselves?
After all, knowing where you're going is a key component to getting there.
Warning: do you currently have a 10 year goal of being "the world's best" something? If so...what does that mean to you? You have the best product? You have sold more than your competitors? You own the digital influence in that arena? If you don't know what "BEST" looks like through the lens of your Purpose and Core, it's mostly directionless.
Going Places
OK, now that we have our fuel, our vehicle and a map of where we're going, we're ready to go there!
Oh, but we failed to notice that there are many different ways to get there.
Just like if I pulled up a map of New York, there would be multiple roads I can take to get to the same place. Or I could choose the subway. Or walk, or take a bike. You get the point.
There isn't actually a RIGHT way to get there.
It's more about holding yourself accountable in going the right direction.
This comes back to Everyday Reinforcement. We need to ensure that:
We maintain a good amount of fuel to drive the machine
We assess our vehicle to make sure it stays in good working order
We keep checking the map, and re-direct if we go the wrong way
EVERY DAY.
If we make it an annual, or every quarterly priority to check in on our fuel supplies, we risk running out. We risk our vehicle breaking down. And we can go a heck of a long way in the wrong direction with a cadence like that.
Thinking there's no possible way you'd have time for this? Just think about how much time you spend
hiring people, firing people, and dealing with performance issues (FUEL)
fixing broken processes, systems or relationships (VEHICLE)
re-doing work, or doing work that doesn't take you anywhere (MAP)
All of these activities take time. And I know from my own experience that I spent a conservative 60% of my time doing those things.
So, sure. You (and your team) can stay reactive and spend 60% of your time on things that don't move the company forward.
Or, you can spend 60% of your time being proactive in ensuring you're going where you planned on going.
I know where I want to spend my time.
Honestly, it's a huge reason I left my corporate job. I was tired of being reactive. I now get to be proactive.
In Summary
Your Core, your Purpose, and your Map on reaching your BHAG® are inherently unique. No two companies are the same. So you CAN copy someone else's way to scale...but it WON'T lead to YOU scaling.
You need to find YOUR way.
It's simple. But not easy. And definitely NOT the norm.
If you're ready to explore what it might look like to create scalability in your sales and marketing functions, let's chat.
