The best book I have read in 2023 is Morgan Housel’s fantastic Same As Ever: A Guide To What Never Changes. I am a regular reader of his informative website CollabFund.com and had high hopes for his latest book. I was not disappointed and if purchase a copy either HERE or on the image provided, you will not be either.
One of my favorites chapters was on why competitive advantages eventually die. As he writes on page 146, “The only thing harder than gaining a competitive advantage is not losing an advantage when you have one.”
On the following two pages Housel goes on to identify the following five ways organizations lose their competitive advantage:
Being Right Instills Confidence That You Can’t Be Wrong
This has to do with ego and assumption. Housel writes, “Size is associated with success, success is associated with hubris, and hubris is the beginning of the end of success.”
Success Tends To Lead To Growth But The Organization Is Now Different
Strategies at one level many times do not work at the next one. Nimbleness and innovation are required.
Also, the people who got you to one level are often not the ones who can lead at the next one. Many times people lack the skills needed to be successful the higher they go in the organization. The Peter Principle comes into play.
Paranoia Is Replaced With Relaxation
Though not publicly said, many people work hard so that one day they will not have to work hard. People relax and as my former president would say, “They start reading their newspaper clippings.” Decline is sure to follow.
Housel observes, “This allows competitors and a changing world to creep in unnoticed.”
Skills May No Longer Be Valuable
As the one with the competitive advantage, your skills are in high demand, and you are likely compensated generously. However, the world will change because it always changes. If you are good at only one thing and a one-trick pony, the changing world may no longer value what you are able to do.
Luck
You may have been in the right place at the right time. However, a changing reality may result in your competitive advantage having a short shelf life.
In conclusion, if any of these five describe you or your organization, you may be in danger of losing your competitive advantage. Your competitors are likely hungry, raising their game, innovating, and gaining on you. Today is the day to change and diversify your skills.
And don’t forget to purchase Morgan’s book by clicking HERE. It will make a wonderful Christmas gift for your staff or the leaders in your life. #CommissionsEarned
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