There have been a lot of external changes lately that have affected your business haven’t there?
When covid struck you likely found a way to pivot your business.
Then inflation came. Then there were supply chain issues. Each time did you try to pivot?
It’s exhausting and can leave you confused on what truly makes you stand out from your competition. And if you’re confused, your customer is definitely confused.
In this episode, business strategy expert Stephen Shapiro shares powerful principles from his new book “Pivotal” about how to maintain business stability. He focuses on finding your unique differentiator and really doubling down on what makes you irreplaceable to your customers.
Don’t miss any of his insightful and practical tips that can help you refocus on creating a stable foundation for your business that makes you indispensable to your customers.
You’ll Learn…
- Why you should focus on what makes your business distinctive, desirable, and durable
- How to find and double down on your business’s core differentiator
- The importance of communicating your unique value proposition to every employee
- How to leverage your personal experiences to create a truly distinctive offer
- Principles that should not change to keep business stability
- How to help your customers innovate by understanding their unique differences
Key Moments…
[03:37] Focusing on Business Principles That Matter Most
[05:04] The Importance of a Solid Foundation
[07:28] The Five D’s of Differentiation
[09:59] Identifying Your Differentiator
[13:34] Leveraging Customer Service as a Differentiator
[20:00] The Three Levels of Capabilities in a Business
[26:13] Creating Business Stability in the HVAC Industry
Focusing on Business Principles That Matter Most
In today’s fast-paced business environment, it’s easy to get caught up in constantly pivoting and changing direction. Guest Stephen Shapiro suggests that knowing what shouldn’t change is more important than knowing what should change. By knowing the core business principles that are crucial to your organization’s success, you can create a solid foundation and avoid the inefficiency of constantly shifting strategies.
The Importance of a Solid Foundation
Stephen emphasizes the importance of having a solid foundation for your business, rather than building it on “quicksand.” He explains that every organization needs to have certain timeless elements that don’t change, which he refers to as the “planted foot” in a basketball pivot. These are the core business principles that are essential to business stability. Stop chasing the latest trends and double down on these foundational elements. This is what enables you to weather the inevitable changes and challenges that businesses face.
The Five D’s of Differentiation
Stephen shares his “five D’s of differentiation,” which are key business principles for identifying and leveraging your business’s unique capabilities. The first three D’s – distinctive, desirable, and durable – are the foundation of what makes your company unique. Distinctive means your organization does something that no one else can, desirable means your customers and clients value it, and durable means it will continue to be valuable over time. The remaining two D’s – disseminated and doubling down – emphasize the need to communicate and embed this focus throughout your entire organization.
Identifying Your Differentiator
Taking the time to clearly identify your company’s unique capabilities that set you apart from competitors is powerful. This process often requires an outside perspective, because when you are so close to all the elements of your business it can be challenging to see your own strengths and unique offerings. Talking with customers, clients, and even third-party consultants can help you get a clearer understanding of what truly makes your business distinctive, desirable, and durable. Applying this focus to your efforts will have the greatest impact on your business stability and create the most value for your customers.
Leveraging Customer Service as a Differentiator
Stephen discusses how some home service businesses have been very successful using exceptional customer service as their key differentiator. In an industry where many competitors offer similar products or services, a key difference you can offer is to provide a personalized, high-quality customer experience. By focusing on these business principles and making sure that every team member delivers this high standard of customer service, these businesses are standing out in the market and creating lasting value for their customers.
The Three Levels of Capabilities in a Business
Stephen introduces a framework that categorizes all the work and activities a business does into three levels: support, core, and differentiating. Support activities help the business run on the inside but do not directly create value for the customer. Core activities are the essentials that customers expect, but do not necessarily set the business apart. Differentiating activities are the unique things that set your company apart and create the greatest value. By understanding these business principles, leaders can focus their resources and efforts on the impactful differentiating activities to attract customers, while finding efficient strategies for the support and core functions that keep business stability.
Applying Business Principles to the HVAC Industry
Stephen gives an example of how the business principles discussed can be applied in the HVAC industry. HVAC companies can identify their unique differentiator and then leverage that to provide greater value to their customers, instead of simply competing on price or features. Real power comes from understanding their customers’ own differentiators and uniquely positioning their services to meet them. The HVAC business that does that can create deeper, more profitable relationships that last.
About Stephen:
Stephen Shapiro started his innovation work over 25 years ago while founding and leading Accenture’s 20,000-person process and innovation practice. Since then, he has written seven books on innovation, including Best Practices Are Stupid, which was named the best innovation and creativity book of 2011 by 800-CEO-READ (now Porchlight) and was an international #1 business best seller. His next book, PIVOTAL: Creating Stability in an Uncertain World, was published in June 2024. He is the creator of Personality Poker®, a card game used worldwide to develop high-performing innovation teams. Stephen has presented at conferences in over 50 countries, and in 2015, he was inducted into the Speaker Hall of Fame. He is also a Senior Fellow with The Conference Board. When he’s not working with organizations helping them make the impossible possible, he enjoys dabbling in magic.
Connect with Stephen:
Get Stephen’s book HERE
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