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Little Advantages

09/11/2013  | Tags: , , ,

hingeI have been searching for the secret for years. What is the one thing that separates the super-successful companies from the also runs. For a long time I thought there was no single secret and all companies succeed in their own unique way.  The recipe is: find an underserved niche and give it good value service or product.

But over time, I came to the conclusion that its not the niche or the product or the value.  It is a lot more mundane factor, that any company can decide to capitalize on.  A simple “secret” which is, however, hard to institute in your company.  Its simplicity should not fool you, as instituting it goes against human nature and hard to systematize and delegate.

The secret is the continuous hunt and implementation of Little Advantages. Small incremental cost cuts and revenue improvement steps; marketing your product or service in every  conceivable a productive way; continually fine tuning processes, etc.

The big problem with this strategy is that it is hard to implement. It requires a constant vigilance over costs, experimentation with new processes and searching novel marketing and sales channels. Unfortunately, these processes are hard to institutionalize and companies typically depend on their leaders to drive this process.
Lee Iacocca, the legendary CEO who saved Chrysler in the 1980s, drove home a different model each night so he can suggest improvements for his engineers the next morning.  Steve Jobs personally experimented with wooden models of the iPhone and iPad until he held the ultimate prototype in his hands.

The good thing about the Secret that anyone can implement it.  All it requires is intellectual curiosity, imagination, attention to detail, iron discipline and a relentless drive.

Istvan (Steve) Preda

Istvan (Steve) Preda

ispreda

Strategic Advisor and Investment Banker who helps companies grow, groom and get great investors.

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