Rose Matlock Consulting

Perhaps you are better at controlling your more seedy television viewing habits…no, not those!  Reality television. Yes, the soul sucking, script destroying, margin protecting mess that reality TV is, has become a known habit in the Matlock household.  Truth be told, it started with the wife but has now become a frequent habit for us both.  She’s watching the drama…but I am looking for lessons and business ideas.  Really Chris?  Lessons?  In reality TV?

Frankly, lessons and general principles are easier to learn in an exaggerated environment.  Often case studies in business school play up this fact by including over the top details that make it easier to learn a new concept or approach.  As many of us know, real life rarely has that kind of clarity.  So sometimes, the larger-than-life nature of reality TV makes it a classroom of sorts for those willing to weed through the context.  All this brings me to Whale Wars…have you seen this crazy show.  A group of committed environmentalist (Sea Shepherd Conservation Society) staunchly opposed to the whaling by Japanese fisherman in the Antarctic, race around the Japanese boats attempting to disrupt, annoy and if possible bring an end to the whaling.  Needless to say, this is dangerous work and the Japanese, to their credit have been fairly stand-offish, though quite vocal in their frustration with the group.  Yesterday, things got more serious, as one of Sea Shepherd’s speed boats (which looks a little like the Bat mobile I might add) was run over by a Japanese security escort (video below).

The specifics of how it happened, is not the point of this post.  The takeaway I had was that when small and mid size companies, compete with larger enterprises, eventually there will be run-ins and clashes.  Especially, if your small and mid sized business is providing extreme value and disturbing the traditional supply/demand curve for your market by introducing a new approach, perspective or passion.  Thus, the forward thinking CEO and Owner must be prepared for this eventuality.  Here are two principles to keep in mind:

1. Competition is Good, but Respect is Crucial – Too often I have seen sales people and managers in the field, earn business at the expense of competitor’s reputations.  The other provider is not just more expensive but also a low trust firm as an example.  Rather than staying focused on advantages their product or service has to offer, the easy sale is to impeach the approach of competitors.  You must know and understand without a doubt, eventually your competitor will hear of this.  A client will defect and share the pitch you and your team made.  Many times, there will be no response but if you pull a dogs tail enough, eventually it will bite you; and the bigger that dog is, the more that will hurt.  Remember, large, national and multi-national competitors have pricing advantages that can allow them to hammer down on supply chain costs or they may just well cut prices till you have run low on cash.  In today’s economic environment, price is very important part of the decision calculus for companies.

1. Relationship is Critical – You probably know this.  In fact, it may well have been the impetus to begin your company or join the small to mid size firm you call home now.  However, over time, it is easy to forget and with the focus on staying profitable and conserving cash right now, relationship can fall to the bottom of the priorities list and with it…your advantage.  As mentioned above, larger firms can enjoy pricing advantages meaning your customers need a compelling reason to be with you.  Have no fear though; relationship is such a vital component to all aspects of our lives that this can carry much weight, as long as it is managed correctly.  One CEO I worked with often said, “You can pick up the phone and say it or you can say it in person and show you care, which will it be?”  His focus on the personal touch has made his company competitive, even with prices 2 to 3 times higher than his competitors.

By following these two principles, you can insulate yourself should you ever have your own “Whale Wars” type confrontation.  In fact, they might just help you avoid it all together or open t he doors to collaboration and  buyouts.  Respect your completion and focus on the relationship with your customers…basic, simple and vital.

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