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Principal
Dixon Consulting Services
Issaquah, Washington
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Growing up, I thought "differentiation" was a mathematical function that went along with integration. I struggled through many hours of solving these complex and often baffling formulas until at the university I discovered Dwight's tables of integrals, which gave instant answers to every conceivable formula. One little book solved all my problems when confronted with these mathematical conundrums.
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Differentiation, I discovered beyond the university classroom, is not a mathematical process. Rather, differentiation is the key to success in business -- the holy grail of all companies. It becomes more critical in management's eyes as the economy weakens and more companies chase fewer jobs or compete in non- traditional markets to broaden their base.
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Unlike my mathematical solutions, however, there is no book that can provide instant answers for problems of differentiation. The main reason is that each situation that requires differentiation is unique and demands a unique solution.
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It follows, then, that the answer to the question of how to differentiate yourself comes from within. Only you can determine whom you are, how others perceive you and, based on these insights, how willing you really are to make and follow through on a commitment to change.
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Whether your quest is for the meaning of life or how to win the next project, there are some fundamental questions that need answering before proceeding. You will be perceived only as one of the crowd if time is not taken to properly consider and answer these questions:
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What are your roots, your history, and your background? Define what shaped and influenced you and gives you your uniqueness.
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What do others perceive is your identity?
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You will need input from both your colleagues and clients. Even people within a company have vastly different ideas of their company's identity. How can you hope to present a clear and consistent business image when those working for you have different ideas -- and they are the people who carry your message into the marketplace?
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It takes a lot of courage to be open and encourage constructive feedback. Many times you will not hear pleasant things if you have set up the environment to get honest feedback. Children are brutally frank, and this is the type of information that's vital for assessing how to move forward.
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Understanding these two questions and, through their application, discovering gaps or differences in your identity, is the first step in differentiation.
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It is essential to determine if a fundamental difference exists between what and who you think you are and/or your business is, and what others think. It may be that aligning these two is the only thing needed.
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For example, you know the last job for a client was great and there is the information to prove it. Unfortunately, a vocal minority at the client had some issues. Their position will color the overall perception of your performance unless it is recognized that this exists and steps are taken to defuse the situation.
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Once the first two issues are understood and aligned, you can move forward to a second tier of questions
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What is your niche market and what are its drivers?
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Does the business you are in provide opportunities to grow and add value to your company or are other markets available to you? Where are these opportunities? Do you have the resources to capitalize on them? Truly understanding these market issues can influence whether you should even spend money playing in a particular market.
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What do your customers or potential customers want from you?
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Everyone wants the same thing, right? Best price, best quality job, under run schedule and under budget. Not necessarily. Personal relationships, trust and integrity play significant roles and can overcome some other parameters. Recognizing these soft intangibles can help you structure your differentiation.
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What is your competition doing? How are they perceived in the market?
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By understanding who your competition is, what they are doing and how they are selling themselves, you can determine what is successful for them. Knowing this can help determine how best to position your company.
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Whether yours is a large corporation or a small company, change and the implementation of change is painful to many and exciting to few. It is critical that you and those in your organization believe in the vision you come up with, since everyone will live and talk this vision. If everyone is not on board, you will present the message that your company is one of those that "wasted" money by going through a futile exercise of becoming a "me too" company.
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Using outside support to help define the company's vision is fine. An independent outside view provides ideas, stimulation, and often a framework to help you move forward. But before doing this, consider these points:
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- Nobody knows your business better than you do.
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- There are mavericks in your own organization, so be open and really encourage their unconventional approach and ideas. Listen and consider their thoughts. The answers are always within. At best, an outside consultant will only facilitate your own understanding. At worst, your own people may feel disenfranchised by outside help being brought in.
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- Chose outside help wisely. You need to have someone onboard who will gain the respect of your employees, and not be perceived as a waste of time and money.
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In some measure, we all strive for uniqueness although there is a comfort factor in being one of the herd. Differentiation is a right of passage through life and constantly evolves.
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It is painful, there will be many false starts along the way and ultimately your success can only be measured by your own sense of accomplishment -- tied to the goals you set for yourself.
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Take in all the support and suggestions you can stomach, and then move forward. Differentiation is in your hands.
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Peter Dixon gained his experience working for technology, engineering and construction companies, ranging from multinational organizations to small start-up firms. Mr. Dixon's background includes corporate management, business development, and technology marketing and licensing, as well as design engineering and on-site support. His career spans North America, Europe and Asia. He has published several technical papers, made presentations to a variety of organizations in different countries, and holds a Bachelor of Technology degree in Chemical Engineering from the University of Bradford in the UK. You can reach Mr. Dixon at: www.dixonconsultingservices.com
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Dixon Consulting Services
© August 2001
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