SUCCEEDING THROUGH DISTINCTIVE CAPABILITIES

 

Succeeding through Development and Application of Distinctive Capabilities

A competence or skill that is superior to competitors is a distinctive capability. In order to stay longer in the market you need superior competences. Distinctive capabilities especially in product innovation, process efficiency, marketing  and customer service can help companies gain and sustain relative advantage over market contenders.

Key Characteristics of Distinctive Capabilities 

1. Distinctive capabilities can disproportionately create and preserve customer value.
2. Distinctive capabilities have stickiness to home base therefore difficult to acquire through poaching of staff, imitation or reverse engineering.
3. They produce consistent and reliable outputs which market contenders find difficult to replicate.
4. Distinctive capabilities are acquired through continuous learning and improvement. When someone is consistently improving his proficiency or excellence, you only play catch up unless you seriously innovate, changing the rules of the game. or changing the game completely.
5. In order to overpower competition one of the distinctive capabilities should be customer service.
6. Capabilities improve over time through application or usage. The more you utilize them the more valuable they become.
7. Distinctive capabilities can birth new capabilities, thereby increasing market share and profitability of owners.
8. However, distinctive capabilities can be made obsolete through new product or market innovation. Therefore, long term success is hinged on how firms re-create themselves by acquiring, applying and re-configuring their competences or capabilities.

 

As Peter Drucker often remarks,” If you have nothing superior to competitors, don’t compete”, because your days are numbered in the market place. In view of the above, business leaders should  periodically audit and review firm competences and direct which ones should be significantly improved or acquired by market exchanges. Those that have distinctive capabilities that create customer value are mostly likely to win.

 

Dr Andrew Nyambayo (PhD. MBA, Bsc Eng) is a business leader, strategist, coach and motivational speaker with over 20 years experience in the telecommunications and service industry. He is the author of famous books, "Integral Marketing: Enhancing Livelihoods"  and  "Succeeding in Turbulent Times"

LEADERS DON'T AWAYS KNOW THE WAY

 

Leaders don’t always Know the Way

These days the statement that, “The Leader knows the way, shows the way and goes the way” is very popular. Many motivational speakers, academics and company executives quote it at every given opportunity. Is the statement always true? I don’t think so. What many people overlook is the failure of most successful leaders. Great leaders make big blunders or mistakes but the results of their good decisions cover up for the shortcomings. It is  healthy and inspirational to spend more time on positives rather than negatives. Leaders sometimes fail because they take the wrong direction; they apply resources to the wrong venture or hire the wrong people. They may invest thinking the new innovation could take the market as a wave of the ocean, only to be a wave of a fishpond. This happens because leaders don’t always know the way.

 So how do great leaders separate themselves?

1)    They are sold out to their vision or direction. If they are right, they reap big rewards.

2)    If they are wrong they never give up. They relentlessly look for new openings, new opportunities and new ways to overcome obstacles.

3)    They win by application of energy. They pursue opportunities with all their might. They don’t reserve themselves just in case they are wrong.

4)    With their zeal, relentless commitment and passion of positivity, great leaders attract and retain loyal followers. No one wants to follow lukewarm people. No one wants to commit where the leader is unsure.

5)    In all their dealings, great leaders show bravery. They have a mindset to win, like David approaching Goliath. Sometimes they lose, but most times they win because obstacles give way to the brave, fortune favours the brave.

6)    Therefore great leaders believe in their way, even though it is wrong. They don’t always  know the way.