Most service companies will eventually run into price erosion from the competition. In order to maintain prices, they need to offer something of value that the competition does not offer.
Take Paul, who owns a local trucking company with 30 trucks in service. He differentiates himself by his ‘on time’ reputation. I asked Paul how his team was adding innovation to his on-time percentage. I challenged him by asking if he included last month’s on-time percentage to his invoice, reminding his customers of his unique value.
Paul’s vision of being the best ‘on time carrier’ was not shared throughout the company. This means his was getting a temporary sales boost from his vision, but was missing the bigger opportunity to transform the business.
Paul’s solution is easy. He needs to take his vision, clearly communicate it to his team, measure it, build processes around it, and reward innovation. After he makes these changes, he won’t need to defend his ‘on time’ percentage to customers. When the next storm hits his customers will ask: “how did the weather last month affect your onetime percentage.” His customers think about him when they watch the weather instead of only when they need a shipment. Paul wins because his customers think about what is important to both of them.
This alignment trick was brought to you out of the EOS (Entrepreneurial Operating System) aligns companies, so everyone is working on the same vision.
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