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16

Why Be Afraid of Competitive Intelligence?

Tom Hawes Competitive Intelligence, Strategy Effectiveness 2010-08-16

For people with a chronic and serious illness, there often is a periodic set of tests used to assess whether or not their disease has progressed. For instance, for people with cancer, many “enjoy” CT scans, MRI’s and blood tests regularly to determine if the cancer has returned, grown or spread. The routine of getting the tests done, waiting for specialists to interpret the results and talking with the doctor is an anxiety-filled time. Many people that I have known dread this sequence. The uncomfortable tests, irritating waiting and difficult discussions dissuade some from proper treatment. And yet, without the proper treatment, how will one get better?

Competitive intelligence is sometimes a similarly difficult topic for some businesses.

Competitive intelligence does three things that can be painful.

  1. It forces an organization to look externally. Indeed, in my experience, most organizations admit that their focus is intensely inward. They are concerned about operations, execution and tactics. The more experienced people sheepishly concede that their balance is out-of-whack. The pain comes from admitting that they have been missing important information from the competitive environment.
  2. It asks why an organization is getting the results it sees. Every company that I talk with wants to improve. Either they want to turnaround a mediocre (or failing) business or they want more growth. Hence, the management creates strategies to improve the results. Competitive intelligence methodically puts those strategy decisions in a competitive context. The pain comes from exposing the leaders’ decision-making thought processes.
  3. It requires new approaches. Especially for companies that have not done competitive intelligence, starting CI will change them. The changes include new allocations of time, augmented strategy decision-making processes and a shift in the culture. These are not trivial changes. The pain comes from seeing that the solution requires long-term changes.

I suppose that there are other real and imagined barriers to competitive intelligence.

Commonly, people that recognize that there is a deficiency do not know where to start to improve. They need guidance and are unsure where they can get it. A lack of support within the organization sometimes stymies even motivated people. They feel that they do not have the latitude to begin competitive intelligence. I have also seen that there is a shock for some when confronted by the difference between what they are doing and what they might be doing (or their competitors are doing). Actions that follow shock are rarely bold. Rather, as with a serious medical diagnosis, the first reaction is often to become more conservative (i.e., avoid starting new things).

If any of this is true for you, your company or your clients, there are some common sense ways to decrease the fear.

  1. Realize that you probably have some time. Medically speaking, only a few conditions are extremely time-critical. For instance, heart attack victims must get immediate attention. For most conditions, however, the time criticality is different. It is acceptable to proceed more methodically. Similarly, a lack of effective competitive intelligence does not happen in one day nor is it “cured” in one day. If you have an on-going business, you probably have some time to reflect on what to do before action becomes essential.
  2. Even a few actions can be beneficial. It is easy to become overwhelmed. When confronted by a new and uncomfortable reality, the complete solution to “make the problem go away” may seem beyond reach and that belief leads to decision paralysis. Overcoming paralysis is simple – you simply move. Practically speaking, “moving” means that you identify a small number of useful actions. Think of this as your “top 3” list of competitive intelligence priorities. The truth is that once you are moving, your mindset will shift from feeling overwhelmed to problem solving.
  3. There are many people with experience available. There is a unique vocabulary for every medical condition. The practitioners (i.e., doctors, researchers, insurance companies) use the terminology to communicate. Until you master the lingo, important concepts, possibilities and applications remain elusive. The good news is that there is little new under the sun. Many people and resources exist to educate and guide someone through most every complicated topic including competitive intelligence. There are training classes, many consultants and several organizations that can educate an organization.
  4. If you are improving, you are likely ahead of most competitors. Sadly, most people do not change. That is why you see overweight people continuing to overeat despite serious medical issues. Smokers continue smoking despite ample evidence of the risk of cancer. However, a few people do confront their lifestyle habits effectively. They standout even when they are simply making progress. Likewise, a company’s cultural habits are hard to change. Because a great number of companies do not include competitive intelligence as an integral part of their culture, any steps that you take will make you standout. Overtime, with persistence, your advantages will increase.

Fundamentally, for medical conditions, the tests do not cause the disease. Rather, they help pinpoint what the current state is and how it should be addressed to improve the patient’s condition. Fearing the tests or the testing process is misplaced fear.

Competitive intelligence is a bit like those medical tests. It highlights the company’s competitive condition and shines a light on possible treatments. Instead of being feared, it should be recognized as an incredibly useful diagnostic tool essential for good performance. When there is fear, thankfully, there are simple steps to ensure that the focus gets past the fear and back on the strategic problem solving that is so important for long term health.

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business strategy, Competitive Intelligence
Address: https://blog.jthawes.com/2010/08/16/why-be-afraid-of-competitive-intelligence/
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