Every company’s mission statement should contain what the Federal Drug Administration calls a “black-box warning.” This is similar to what appears on each pack of cigarettes and on numerous medications approved by the FDA. For companies, a comparable admonishment should be: “Complacency is a silent value destroyer that can cause your business to fall behind competitors.” Remember you are in a race that has no finish line.
Most companies promote the promise of complete satisfaction to their customers, which is a good thing. However, fostering a state of satisfaction and contentment within your corporate culture is not. Am I promoting that all business leaders become malcontents? Yes, pretty much. To do otherwise can stifle innovation. You can bet that as sure as there are little green apples, there are others, right this minute, thinking about how they can do what you do better, faster and cheaper.
Forget for a moment that it’s politically correct to assert that competition is good. Frankly, as a CEO, I never once recall jumping out of bed in the morning and screaming, “Yippee, maybe today I’ll get a new competitor!” Yes, competition makes us all better but not without considerable pain both economical and emotional. That’s why the best of the best leaders suffer from various degrees of “F of F,” or fear of failure. F of F is one of the strongest drivers known to man to spur improvement. Every time you think you have it knocked, lo and behold, some competitor that was lurking in the shadows seems to appear almost out of nowhere with a different twist or turn of your contraption or business that makes your heart skip a beat. And that skip ain’t caused by love or happiness.What’s a CEO to do?
For survival, you must confront the potential of a new interloper head on. It is altogether fitting that your team pauses to smell the roses by celebrating a success. If you don’t, your troops will rightfully perceive you as an ungrateful curmudgeon or an unrelenting taskmaster although there probably is some underlying truth in these assumptions.
A quick series of attaboys and toasting a win are always appreciated by those involved. However, as soon as the party glasses are cleared from the table, it’s time to start planning your next iteration. This is just a simple matter of survival of the fittest. I’m frequently asked, “What are you going to do now that the big job is done?” My response is always, “If I’m doing my job efficiently, I’ll never be done.” Just look around and you will find examples of too many great ideas that were translated into a finished “must-have” product, only to, in short order, wilt and die on the vine. Does anyone remember Polaroid Instant Cameras, Sony Betamax Recorders or Microsoft’s WebTV? All were initially heralded as the next best thing, only to fall from grace when the next generation was introduced by a shrewd and heartless competitor.
How do you keep your organization energized knowing that once they’re done creating they’ll have to do it all over again and then again and again? One effective method is to have more than one team ready in the wings to begin working on the same product or project. When Team A is done, the next new and improved version becomes the job of Team B. While Team B picks up the gauntlet, the original team starts on something completely different. Team A is satisfied by its accomplishments and can savor the moment while team members gain enthusiasm for their next undertaking. Team B, meanwhile, is motivated to top its predecessor with improvements that the first group may not have even envisioned. Competition within your own organization sure beats the competition that comes from outside.
As the leader, your job is to be not only the chief cook and bottle washer but also the head pot stirrer, always prodding the search for the unexplored or the unimagined. Some cynics may call you a malcontent but so be it, because if you’re not, you are almost guaranteed to be called much worse a has-been.
Michael Feuer co-founded OfficeMax in 1988. Starting with one store and $20,000 of his own money during a 16-year span, Feuer, as CEO, grew the company to almost 1,000 stores worldwide with annual sales of approximately $5 billion before selling it for almost $1.5 billion in December 2003 to Boise Cascade Corp. Feuer is CEO of Max-Ventures, a retail venture capital/consulting firm, and co-founder and co-CEO of Max-Wellness, a new health care product retail chain concept that launched in 2009. Feuer serves on a number of corporate and philanthropic boards and is a frequent speaker on business, marketing and building entrepreneurial enterprises. Reach him with comments at firstname.lastname@example.org.