Practically Radical

Don't follow the rules of the game – reinvent them. Compete on your own terms, not on someone else’s.

1. Redefine the Game

Success often comes not from competing harder but from reshaping the competition to your advantage. Instead of following old market strategies, create new ones.

Pedigree, guided by the advertising agency TBWA, adopted this approach when they repositioned their brand from a dog food company to one centered around caring for dogs. They cultivated an emotional connection with customers through impactful activities like running dog adoption ads and allowing employees to bring pets to work.

Swiss watchmaker Nicolas Hayek similarly leveraged Switzerland’s rich history of watchmaking to rebrand its premium Omega watches as luxury items for achievers, while launching Swatch for affordable Swiss-made options – all while distinguishing itself from East Asian manufacturers.

Creating a new perspective helps businesses stand out. It’s what turns challenges into strategies that inspire change and growth.

Examples

• Pedigree’s transformation into a dog-lover’s brand
• Hayek's repositioning of Swiss watches through tradition and innovation
• TBWA's "vuja dé" principle – seeing something familiar in a new way

2. Borrow Ideas from Other Industries

Breakthroughs often arise from adapting concepts that already work elsewhere. Sticking to your industry’s norms can limit innovation.

Henry Ford revolutionized car manufacturing by using a system inspired by slaughterhouses – introducing the assembly line which improved efficiency and affordability. Commerce Bank mirrored retail giants like Walmart by extending its operating hours, rethinking convenience within banking.

Even in resistance, like at Virginia Mason Medical Hospital, leaders can find value. By adopting Toyota’s "just-in-time" kanban manufacturing principles, the hospital cut waiting times drastically, overcoming inefficiency objections.

Examples

• Ford's assembly line inspired by a Chicago slaughterhouse
• Commerce Bank mimicking Walmart's customer-focused hours
• Virginia Mason's embrace of Toyota-style kanban systems

3. Focus on Excelling at One Thing

Focusing on one thing your company does exceptionally creates a competitive edge that's hard to beat.

Online retailer Zappos set itself apart through unmatched customer experience – offering next-day delivery, extensive call center support, and even helping customers find items at competing stores if out of stock. Their obsession with care made shoppers return time after time.

The MGM Grand transformed its restaurants to optimize revenue. By aiming to maximize potential earnings, Gamal Aziz revamped underperforming spaces and turned them into profit powerhouses – doubling hotel revenues in a few short years.

Commitment to one outstanding area will compel customers to choose you over the rest.

Examples

• Zappos free next-day delivery and call center excellence
• MGM Grand’s revenue-targeted transformation of its restaurant
• A survey finding two-thirds of bankers lacked a distinctive competitive answer

4. Build a Community, Not Just a Business

Companies flourish when they connect to customers like a family rather than treating them as transactions. A sense of belonging generates loyalty.

DaVita centers created home-like environments for dialysis patients, including hallways covered with personal stories and photos. By showing respect and care, they turned annual losses into millions in profit.

London Drugs thrived by asking "how else can we serve?" This question deepened customer trust, making them loyal to its offerings, whether pharmacy items or real estate expansions.

This emotional engagement is valued by customers, as demonstrated by Gallup research distinguishing rational consumer satisfaction from irreplaceable emotional bonds.

Examples

• DaVita’s “community before company” motto visible in patient care
• London Drugs' focus on meeting existing customers' broader needs
• Gallup study on rational versus emotional satisfaction outcomes

5. Leadership Humility Yields Team Success

Top leaders aren’t lone geniuses; they rely on collective intelligence across their teams. The best embrace both humility and ambition — an approach coined as "humbition."

Jane Harper of IBM encouraged leaders to acknowledge input from employees while driving ambitious goals. Dave Marsing, after a life-altering heart attack, became an advocate for collaboration and moderation in leadership.

Rite-Solutions’ "Mutual Fun" turned employee ideas into an in-house stock market, generating dozens of workable projects and adding significantly to company revenues.

Examples

• Jane Harper's humbitious leadership at IBM
• Dave Marsing’s life-changing leadership rethinking at Intel
• Rite-Solutions’ employee-driven "Mutual Fun" innovation market

6. Innovate by Engaging External Minds

Sometimes, innovation comes from looking outside the company. Global perspectives often solve the toughest problems.

Netflix’s million-dollar contest for improving its Cinematch recommendations rallied global talent, contributing ideas so profound that a group winning participants never even met.

Threadless built its brand on customer submissions. By inviting designers and voting participation, they developed a thriving creative community that drove sales.

Bringing external collaborators on board not only fosters great ideas but builds connections and goodwill.

Examples

• Netflix’s open competition improving Cinematch algorithms
• Threadless’ customer-design community shaping its products
• Global talent collaboration through online forums during contests

7. Plan Revenue Backward

Instead of tinkering with efficiency percentages, calculate top potential and then determine what it takes to hit that number.

This strategy doubled MGM Grand’s profits under Gamal Aziz, who identified the full potential of underused assets like restaurants and repurposed them for greater success.

Examples

• Aziz applying backward revenue planning at MGM Grand
• Eliminating underperforming outlets to introduce profitable replacements
• Generating success by focusing directly on potential returns

8. Engage Meaningfully with Existing Customers

London Drugs displayed that growth doesn't require targeting new crowds but delving deeper into serving current customers’ needs and trust.

It expanded into unrelated sectors like real estate simply because loyal buyers believed in their consistent quality and reliability from previous products already sold.

Examples

• Trust enables unconventional diversification
• Success grows without chasing temporary consumer trends
• Serving better retains vs luring expendable new accounts

9. Turn Historical Strength into New Appeal

History imbues credibility; innovation modernizes relevance.

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Takeaways

1. Ask yourself what unique niche your business occupies and outshine competitors by excelling at it.
2. Bring fresh ideas into your business by analyzing other industries and collaborating internally with employees at all levels.
3. Foster emotional and human connections with both customers and team members to build lasting loyalty and success.