Fight, Flight, or Unite? Three Responses to Business Challenges

“…the availability of information about a threat or opportunity has little influence on who wins and who loses.            What makes the difference is what a company does with that information.”

  — Clayton M. Christensen, Scott D. Anthony, Erik A. Roth in Seeing What’s Next, 2004

Business challenges come dressed as high-impact threats and opportunities, and each demands a response. The strength of your ability to respond is the primary determinant of your next move,  whether you opt to:                                         1. compete (fight),           2.alter direction (flight), or           3. develop an alliance (unite).

The authors of Seeing What’s Next suggest that asymmetries of skills or motivation play a critical role in determining our next moves. “Asymmetries of motivation occur when one firm wants to do something that another firm specifically does not want to do. Asymmetries of skills occur when one firm’s strength is another firm’s weakness.”

In focusing businesses on growth-accelerating strategies, our consistent guidance has been to adopt a three-phase approach: “clarify, comprehend, connect.” Assuming that the CEO has aligned the company around a crisp, clear view of its own skills and weaknesses (i.e. clarify) as a foundation for effective execution, the second step is to evaluate the relative strengths and weaknesses of the competition (i.e. comprehend). When one firm demonstrates strengths in markets in which another firm’s capabilities are weaknesses, and vice versa, a self-fueling partnership (i.e. connect) may be an alternative to fight or flight.

The choices of responding to a significant threat or opportunity are:

Fight (asymmetric analysis highlights your company’s relative strength)

When your company’s processes and offerings are much stronger than competitors, leverage your unique capabilities to increase market share at the expense of competition.

Flight (asymmetric analysis highlights your company’s relative weakness)

When the cost is prohibitive of overcoming a competitor’s strengths that far outweigh your own, refocus on other markets or submarkets where your company can be a dominant player.

Unite (asymmetric analysis identifies complementary strengths and weaknesses)

If it’s clear that combining your resources with those of another company could make both stronger by compensating for weaknesses, the oft-overlooked third option is to create a symbiotic partnership.

The bottom line for any CEO? Develop an eye for asymmetries, then make a rational decision between fight, flight, or unite!

(A more detailed discussion of these alternatives are found in the excerpt “The Innovator’s Battle Plan” that is drawn from the book.)

About Bob Barker
Bob Barker is a trusted advisor to CEOs, helping them identify, define, and execute new growth-accelerating opportunities. He also shares ideas on LinkedIn (robertgbarker), in guest posts on related blogs, and in industry publications. Contact him via email at bob@2020outlook.com.

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