The Three Shifts: How to Develop a Differentiating Competitive Advantage

Every company competes.Winners win because they develop a Differentiating Competitive Advantage (DCA).This little book—which you can read in One Hour—shows you how to develop One.Every business school teaches that companies must develop a competitive advantage.But they don’t teach you how to do it.They have theoretical frameworks. Endless 2x2 matrixes. SWOTs. Five Forces. Blue Oceans.Those frameworks are helpful, but they don’t teach you how to develop a competitive advantage.There are dozens of business management methodologies, such as the Balanced Scorecard, ScaleUp, the Entrepreneurial Operating System (EOS), the Four Disciplines of Execution (4DX), and more.Those methodologies are helpful, but they don’t teach you how to create a competitive advantage either.Likewise, there are dozens of CEO peer groups, such as Vistage, C12, Renaissance Executive Forums, The Alternative Board, and more.These groups are helpful but … you guessed it … they don’t teach you how to create a competitive advantage either.Yet, every private equity firm, venture capital firm, and serious investor uses the strength of a company’s competitive advantage as a key investment criterion.So, creating a competitive advantage is mission critical. It is the more important driver of company value.Yet, none of these organizations teach you how to create one.To address this problem, we developed a methodology that is both profoundly simple and incredibly effective.There are three steps. We call them The Three Shifts.What happens when you complete The Three Shifts?Your company heads to The Winners Circle!Specifically, our clients have experienced seven specific wins:WIN #1: Improved Employee EngagementAs you implement your One Thing, you begin to recruit people who are intensely passionate about it. Infusing your One Thing into every HR function provides incredible clarity and consistency which fuels significant improvements in employee engagement.WIN #2: Improved Win RateAs you become differentiatingly great at your One Thing, you also communicate a more compelling brand promise. When you combine this with more precise targeting of customers who value your One Thing and a more effective sales force, you will see significant improvements in your win rate. This will obviously also drive top line growth.WIN #3: Improved Gross MarginsSince you are targeting customers who value your One Thing, you have reduced discounting and even have the potential to raise prices to reflect the increased value you are delivering.WIN #4: Increased Customer SatisfactionWhen your brand promise is clear, your marketing campaign is compelling, your sales processes are aligned, and your delivery is consistent, your customer satisfaction (and retention) will go up dramatically.WIN #5: Improved Net IncomeAs you use your One Thing to prune and focus your investments, you become more efficient. This reduces waste and improves net income.WIN #6: Increased ValuationSince investors pay a premium for companies with a Differentiating Competitive Advantage, your share price will rise, and your valuation will be at the high end of the EBITDA multiple range.WIN #7: The FlywheelThese wins generate the cash required to continue improving your One Thing, engaging employees, winning customers, and attracting investors. This further strengthens your Differentiating Competitive Advantage and opens new opportunities for growth. Read more