Follow the Leader, Distantly
Legal Insight 2010/09/02 21:32
Driving home yesterday afternoon, I was inspired to analogize safe driving practices with prudent business development. Specifically, I likened good business judgment to following vehicles at a safe distance. Just as following the next car too closely can result in accidents, mimicking a perceived leader in business can produce calamitous business results.
My analogy is paradoxical. Being “safe” in business by putting distance between yourself and another leading competitor doesn’t seem very smart. Intuitively, shouldn’t we be a tailgater, if for no other reason than to prepare to pass our competitor? Yes, tailgating is risky, but calculated risk is what successful business is all about.
In my view, tailgating is stupid, both on the road and off. It’s inappropriate and unnecessary risk. The better risk is trailing at a safe distance. Although beating your competitor at his (or her) own game becomes more difficult, differentiating yourself becomes easier. In being different, a business can both avoid repeating competitors’ mistakes and, perhaps more importantly, gain the broader market perspective required for novel (or at least rare) insight about better paths to trod. In street parlance, you can avoid the pile up if you’re not part of it, maybe even spotting a detour with the extra time you’ve afforded yourself.
My analogy is paradoxical. Being “safe” in business by putting distance between yourself and another leading competitor doesn’t seem very smart. Intuitively, shouldn’t we be a tailgater, if for no other reason than to prepare to pass our competitor? Yes, tailgating is risky, but calculated risk is what successful business is all about.
In my view, tailgating is stupid, both on the road and off. It’s inappropriate and unnecessary risk. The better risk is trailing at a safe distance. Although beating your competitor at his (or her) own game becomes more difficult, differentiating yourself becomes easier. In being different, a business can both avoid repeating competitors’ mistakes and, perhaps more importantly, gain the broader market perspective required for novel (or at least rare) insight about better paths to trod. In street parlance, you can avoid the pile up if you’re not part of it, maybe even spotting a detour with the extra time you’ve afforded yourself.
