Once again, Glenn Llopis has written a wonderfully clear and useful post (just go ahead and read any or all of Glenn's posts...he doesn't disappoint), about some key elements of great companies.
Yesterday, I commented on an interview I'd read with Michael Porter, where he noted that 'being the best' (ie., doing what your competitors do, but better) is not the road to success. He posits that the heart of good strategy is finding unique ways to serve your customers, everywhere along the value chain. Glenn's post connects Porter's principles to reality, providing clear, real-world examples of companies doing just that. He talks about companies like Apple and Groupon providing fresh, unexpected products and services that stand out in a crowded marketplace - and staying focused on providing unique value when crazy things happen (recessions, new competitors, etc.). And he even references the New York Knicks counter-intuitive win with Jeremy Lin - a player who had been passed over by other teams as a "poor fit,"
Glenn also talks about how great companies behave differently on the supply side of the value chain - finding blends of structure and improvisation that work better than traditional approaches. He cites companies like Google and Facebook that have well-structured operations, but encourage their folks to think and act in entrepreneurial ways.
The last element Llopis discusses is "social significance," noting that great companies build into their strategy ways to make the world a better place. He gives the example of Ikea working with UNICEF to support children's health worldwide. I often point to TOMS shoes as an elegant and powerful demonstration of this: they give one pair of shoes to a child in need for eery pair they sell.
For me, this last point is where Porter's somewhat cool and analytical principles come to life: there are few better ways to strengthen the entire 'value chain' than to focus on social justice and supporting those in need: employees are inspired and motivated by it; customers appreciate it and feel more bonded to you; you get great PR.
And, most important - the world improves. That's good strategy.
