Value Monopoly

Introduction

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We always hear the business press and academics talk about how unpredictable the future will be. How the rapid rate of change will affect all industries and businesses. However, the instability we are all experiencing right now is unprecedented for most of us. As I have written before, these times require all of us to rethink how we conduct business. Times like this requires us all to reevaluate how we conduct business and how to survive and prosper as things rapidly change. If you typically react to market changes, this is a great “kick-in-the-pants”moment to be proactive. Stay positive and realize the unlimited opportunities that now exist.

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I recently re-read (for about the third or fourth times) a great book from Edward de Bono, titled Sur|petition. The book should be an essential read for everyone, especially now. Doctor de Bono talks about the need to move beyond how we think of competition. We need to think of ways to leapfrog competition, and think more about success, not competition; not about trying to beat the other “guy” but developing a “valufactory”.

We need to develop an ongoing flow of new values for our customers. We need to create new ideas and develop alternative ways to do business and provide value. Business is about developing ideas. Creativity is the way to develop new ideas. Therefore, creativity is the most important human resource. In times like this, the organization that develops the best ideas, will prosper and grow. And the only way to develop great ideas, is to apply creative thinking to produce a large amount of ideas, so you can find that “golden nugget”.

Business as Usual

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Most managers focus on “business as usual”. Their focus is about maintenance of the current business and basic housekeeping; a focus on quality, customer service, solving problems, and cost reduction. It is about efficiencies and keeping the ship moving. It is maintaining the status quo and keeping the competition in check. It is typically not about thinking of new ways to provide value. Business as usual is complacency and not preparing for bad times. It is not about a continuous focus on improvements in all areas of the business, especially those that are performing well.

Most managers focus only on problems, not opportunities. For organizations to survive and grow, managers need to move beyond the status quo and focus beyond the competition. It’s time to get moving! It’s time to focus on success, by developing new ideas to create more value.

Beyond Competition

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The term “competition” is from Latin meaning “seeking together”. Competition is about “running in the same race”. Doctor de Bono defines “sur|petition” as “seeking above”, choosing your own race. It is about creating a “value monopoly”; the integration of values to move beyond simple competition.

Organizations need to redefine what “competition” is. Doctor de Bono notes organizations need to “valufacture” - create and form values. Organizations need to develop an ongoing stream of values that exceed what the competition offers and what the customer expects. It is about a holistic model that focuses on the integration of tangibles and intangibles. A mindset that moves beyond just the product or service, but redefines the overall concept of the offering. This mindset is required to develop new ideas to create differentiation and long-term competitive advantages. Creativity is the foundation of developing new values.

Creativity

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Creativity is the most important asset within any organization. Without creativity organizations will wither and die. For creativity you need to develop a “creative innocence”. You need to have a “beginner’s mind” to see things with a new perspective. One of the strongest barriers to creativity is experience. The more experience you have, the harder it is to see how things can be improved or find new ways to do the same thing. Experience often kills “new, crazy ideas” before they are given a chance to develop. Experience needs to be balanced with a “beginner’s mind”.

Creativity requires the following:

  1. Motivation - the desire to improve things

  2. Attitude - a beginner’s mind to see things in a new light, the belief that creativity and further thinking can make a difference (possibility)

  3. Focus - the ability to focus on a specific area to apply creativity; focusing on a specific problem, a direction for improvement, or a general area of need

  4. Techniques - the knowledge of tools and techniques to develop new ideas deliberately

Most importantly, you must put your ideas into action. If you only develop ideas without testing them in the real world, they are useless. For continuous improvement and understanding what works and what doesn’t, ideas have to be tested. Adopting an experimental culture that not only encourages, but demands ongoing testing and the acceptance of failure is critical to move forward.

Action

Without action, nothing happens. Too often complacency discourages action. Plans are kept on shelves and gather dust. New ideas sit unused. Employees are discouraged to “rock the boat”. The business moves along doing what worked in the past. The future becomes the present and new, innovative competitors emerge.

Action takes the desire to experiment, learn, fail, and try again. Action is about questioning and testing. If you think something is perfect, focus on it and make it better. Does it provide new value for customers? If so, develop it. If not, try again. Action is about moving forward.

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Right now we are seeing smart businesses zag while competitors try to maintain the status quo as the world pivots.Restaurants that only offered sit-down service are now offering delivery and takeout and experiencing growth. Motorcycle dealerships that would never repair motorcycles that were not purchased at their stores, are now accepting new customers. Car dealerships are offering home pickup and delivery for regular maintenance. Organizations that create new value for their customers will not just survive, but grow and develop loyal customers.

Action requires courage; the courage to fail and learn. The courage to move beyond the status quo and change. Action is fun and exciting and creates new opportunities. When the city of Seoul, South Korea wanted to increase tourism in the winter they could have kept to the same old playbook; advertising the amazing food, marketing the cultural heritage sites, etc. But creative officials thought of they could add new value to increase winter tourism.

Officials realized that Seoul airport was a hub for many tourists flying to other destinations. Many of these tourists were going to Southeast Asia for the warm weather. Officials realized that many of these travelers often had long layovers and were “stranded” in the airport - they did not have winter clothes to go outside, so they just sat in the airport, bored and not spending money.

Soon “winter city tours” were offered. These new tours offered a winter coat, a bus that would pick you them up and drop them off at the airport, fast-pass through security, etc. Now travelers could experience the city, not worry about the weather or missing their flight, and most importantly spend money.

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This new value provided a way to enjoy the city and have a mini-vacation. The addition of tour guides provided a completely new experience that they could share with friends and family. Seoul realized that adding new value to the experience provided a year-round opportunity for tourism. This mini-vacation planted the seed for these same tourists to visit Seoul throughout the year, not just when passing through.
So, how will you create new value?

Conclusion

Creativity is the lifeblood of an organization. You cannot be content with your current thinking. You must move beyond housekeeping and complacency. Creativity must be applied to all areas of the business. Everyone in the organization needs to be trained in creative thinking and encouraged to develop new ways to add value to the business and customers.

Complacency can be arrogance, comfort, or lack-of-vision. Complacency is not using your potential. Without new ideas and action, this current crisis can be devastating to your business. This is not the time to sit back and wait. Rethink how you think and get moving!

Resource

Sur|petition by Edward de Bono