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September Carnival of Trust is Up

 

The September Carnival of Trust is up, and it’s a great read. 

Our hard-working host this month is Ann Bares, of Altura Consulting Group, who writes at Compensation Force.  For those of you new to "carnivals," the concept is this: each month, a guest host combs the internet for the best blog posts relating to trust: trust in sales and marketing, leadership and management, strategy/economics/politics, and advising/influencing.  Each host adds their own particular perspective and commentary n teh Top 10 choices they made.

Ann has done a terrific job surveying the field–her selections convey the range of situations within which trust is relevant.  She introduces and shares with us posts on trust relations between citizens and local government; the role of trust in social networking; how saying "No" can create trust; and my personal favorite, the use of trust as a substitute for controls in the business world.  Congratulations to all the posts selected by Ann to make the Top Ten List–it’s an honor!

It’s a great read–I recommend the September Carnival of Trust to you.

Past Carnivals can be found here.  If you’d like to enter a blog posting for the next Carnival, click here.  The next Carnival of Trust will be held at the beginning of October.

 

Trust and Noah’s Bar Mitzvah

I’m asked frequently what organizations can do to increase their perceived trustworthiness in the market. Part of the answer is to increase trust within the organization itself; after all, why should a customer or supplier trust an organization whose employees don’t even trust each other?

Which is why it’s interesting to look at practices of high-trust organizations.

Which brings us to Noah G.

I was privileged to be a guest at Noah’s bar mitzvah this past weekend in San Francisco. It was a moving event for many reasons. And that’s part of the lesson.

Being “moved” is a bonding event, creating a shared experience. Shared significant experiences are a basis for understanding each other—if it’s significant for you, and I’ve been there too, then to that extent I “get” you.

The bar mitzvah—like other bonding experiences–enhances that sense of unity, cohesion and collaboration among a group.

The service refers to the group’s shared values—in this case, embodied in the Torah. Which is written and read in the identical language used about 3,500 years ago. The values are literally—physically—walked around the room for all to touch—again, literally and physically.

As an observer, for me the heart of the bar mitzvah service involved Noah being asked to describe the meaning of an ancient piece of text for today’s world. Think values-driven management. Think demanding that even 13-year-olds learn and share how time-tested values are applicable to today’s world.

The dimension of time, I think, is critical for trusting experiences. Without something common that bridges time, we have nothing but a sequence of transactions (a great number of “best practices” these days in business are focused on transactions without reference to a time-based relationship). Relationships by definition presume constancy over time.

In Noah’s case, the after- party featured a slide show of Noah in relationship over time—Noah with his brother, his parents, his cousins. And, strikingly, photos of Noah’s father at his own bar mitzvah—and Noah’s grandfather at his.

The service, being held on the Sabbath, contains the Kaddish—recognition of those who have passed on but are still part of the Relationship—specifically including those for whom no one any longer exists who can speak for them directly. (Does your company actively cultivate “alumni”—or do you force them to sign non-competes and “leave the building?”)

Did I mention the ceremony was moving? My own tradition is that of ‘God’s frozen people,’ as Garrison Keillor puts it. To hear parents speak openly in public of their love for their child feels shockingly, achingly personal to me—both as a child and as a parent.

I felt the same ages ago sitting in the choir loft next to my Irish Catholic girlfriend at her father’s funeral, as she played Danny Boy on the flute and the congregation wept openly with every note. Personal.  Real.  It has to be personally moving, because relationships are personal.

And paradoxically, that’s one of the most important parts of building trust in an organization. Trust may be encouraged institutionally, but it has to be built personally. If you’re not moved yourself, how can you expect others to be moved by you–to trust you?

Trust minus passion leaves only statistical probabilities; not the road to building a trusted organization.  We don’t trust organizations very much; we trust the people in them—or not. Organizations who would be trusted had better not fear to get real, to get personal.  Like the bar mitzvah.

 

Misconceptions about Trust-based Selling: It Doesn’t Work

This is the third in a series of three about misconceptions regarding Trust-based Selling™. The first was about naievete; the second, about time.

The third misconception is that it doesn’t make sense, it just doesn’t work.

Not unreasonable, since trust-based selling rests on some apparent paradoxes. For example:

a. managing your sales with short term metrics will drive your short term metrics down;
b. the best way to be credible is to admit where you’re not;
c. you have the most influence over customers when you stop trying to influence them;
d. the best way to improve your closure rate is to stop trying to improve your closure rate;
e. to gain control, give up control.

This shouldn’t be surprising. For an elegant statement of how this paradox plays out—nominally in golf—see Phil McGee’s post The Putt.

The thing is, buying is still a very human phenomenon—and we humans are obstinately perverse. We do not like being hustled. We do not like being told what to do by those who we don’t think understand us. And we do not buy from people we think are using us for their own ends.

That’s the heart of the paradox. A salesperson who puts his sale ahead of his customer will lose both. A salesperson who puts his customer ahead of his sale will win both. You have to care about the customer—for the sake of the customer, not for what the customer can do for you.

The language of paradox is alien to modern sales. Big corporate sales is all about linear process management: break it down into ever-finer pieces, and micro-manage each one. Fine-tune the sales pitch; tweak the yield rates by tighter lead qualification; get the close in this quarter; and measure everything by the effect it has on sale and the cost to get there.

That’s all about the sale—not the customer. The term “customer focus” itself is turned inside out when we evaluate “focus” by whether or not it produces the sale.
Trust-based Selling is not a process—it’s a set of principles consistently applied. They are:

1. customer focus—for the sake of the customer
2. an instinct for collaboration
3. a default toward transparency except where injurious or illegal
4. a medium-to-long term focus on the relationship, not a short-term focus on the transaction.

If you had to put it into one word, it would be “care.” The more complex, long, and specialized the sale, the more we buy from those who care about us more than they care about getting the sale.

Doesn’t make sense? On the contrary, it makes all the sense in the world.

——

If you’d like to learn more about Trust-based Selling™, why not join me for a Webinar tomorrow, Thursday, August 21, titled How to Build Trust in Sales Conversations. It is from 2PM to 3:30PM, Eastern time. See you there.

 

Misconceptions about Trust-based Selling II: The Time Thing

Last week I wrote about the first of three misconceptions people have regarding trust-based selling—the idea that it’s naïve.

This post tackles the second misconception: that trust takes too much time, both elapsed time and in aggregate. You’ve heard this one as either:

  • “trust takes time and we can’t afford to wait that long,” or
  • “trust takes such a big time commitment I’m not sure it’s worth it.”
  •  

It takes too long; it takes too much. Neither is true.

Let’s start with “trust takes time.” How long does it take for you to read the degree on the doctor’s wall? To notice the doctor’s white coat? To share feelings with a surprisingly interesting seatmate on a transcontinental flight?

More pointedly: in a sales conversation, how long does it take to demonstrate interest, curiosity, caring, and enough self-confidence to shift the agenda on a dime in response to client interests? All these take less time than a conventional process-driven, presentation-oriented sales meeting—and create more trust.

Now let’s consider “trust takes such a big time commitment.” Behind this statement is the belief is the first belief—that people only come to trust slowly, in incremental parts, repeated frequently over time.

But trust has many dimensions: the “trust takes time” belief is mainly focused on reliability, which by definition does take elapsed time. It misses other senses of trust—credibility, integrity, intimacy, other-focus, for example. Those can be established in an event, in a moment, with a handshake, a word, a question asked at the right time in the right tone. These take very little time. And hence they don’t take a huge investment.

Let’s move away from B2B sales: consider online dating services. Do they take time? Do they require large investments of time?

Not if you consider the dating scene pre-Match.com. Think of the ability to read people’s self-descriptions, to hear about them in their own words, perhaps with video or audio, perhaps with some advance “metrics” on compatibility.

Now consider how long it took, and much invested time it took, to get to a comparable level of trust one date at a time, over days and weeks. Or consider the odds of a first date ending well in the online dating world, vs. the blind date world of not that long ago.

Rapid trust creation is not an oxymoron; if anything, it taps into something more powerful. Rather than waiting to develop trust by reputation, we can create trust by being bold, other-oriented, curious and courageous—quickly. And benefiting all.

 ———- 

Note: I will be giving a webinar this Thursday, on How to Build Trust in Sales Conversations.   It’s hosted by the good people at RainToday.com.  It’s from 2 to 3:30PM US Eastern time.  Again, that sign-up address is here.  
 

Live Webinar on How to Build Trust in Sales Conversations — Thursday, August 21

I don’t do a lot of webinars—but I will be giving one live next week—Thursday, August 21, from 2-3:30PM Eastern Daylight Time--on the subject of Building Trust in Sales Conversations.

The session is being hosted by the good people at RainToday, a powerful site focused on marketing and business development for professional services; the cost is $90, you can sign up here at RainToday.com.

Why the topic Building Trust in Sales Conversations? Because it tackles a lot of myths and misconceptions about selling.

For one, most of us think that selling draws down on trust. Rightly done, however, sales interactions are one of the best situations in which to create trust.

For another, trust is largely created (in intangible services or complex sales) not by branding, eloquence, speeches or credentials, but by personal interactions. Conversations. Sales conversations, about what people need and want.

Finally, many people think of trust-based sales conversations as things that can happen only after a long period of time has allowed trust to develop and grow. The truth is, it is in sales conversations that the trust grows. Just like other types of human relationships, trust doesn’t happen before real, honest conversations—it is created in them. Trust doesn’t enable selling; selling enables trust. This means trust can be created far more rapidly than we oftne think.

Understanding how to create trust in a sales conversation is a great source of freedom; trust doesn’t take time, it isn’t a business process, it doesn’t come about from following metrics, and it isn’t a business process. It is something each of us can do, personally, far better than we think.

Join me in a conversation (well, a webinar anyway) about this exciting topic. Sign up here for How to Build Trust in Sales Conversations.

I look forward to the time together.

 

 

 

 

Misconceptions about Trust-based Selling: Naivete

I find people have three primary misconceptions about the idea of Trust-based Selling™.

• One is that many people are not naturally "good," and that trusting people is naïve; doing so will bring you grief, if not danger and penury.
• The second misconception is that being trusted takes a lot of time and effort; too much, by their view. “We can’t afford to spend that much time and resources to be trusted.”
• The third misconception is that it just doesn’t work. It can’t be measured, it can’t be profitable, it doesn’t make sense.

I’m going to address all three of these misconceptions in separate postings. This is the first, aimed at the “naivete” argument.

There are some lovely counter-examples; see a blogpost called “Do You Trust Your Customers” by Rebecca Morgan, at Grow Your Key Talent  about the use of honor boxes and self-assessed service guarantees.

But counter-examples usually don’t convince doubters. So let’s try logic.

I’ve noticed that the “naivete” objection to Trust-based Selling is perversely aimed at buyers, not sellers, as in, “I could get really hurt by trusting others—they might take advantage of me.”

They miss the point: they confuse trust with trusting and with being trusted.  Trust-based Selling is mainly about the buyer trusting the seller, not vice versa.  While you can’t be trusted without being willing to do a little trusting yourself (the blogpost from Rebecca Morgan is just such an example), the bulk of the risk in trust-based selling is not taken on by the seller, but by the buyer. Trusting is but one strategy for being trustworthy— not the only one, or even the most important.

If indeed it’s naïve to believe that people can trust a seller, then the right question to the seller would be, “if even only a few people are willing to trust—are those few willing to trust you? And if not, why not?”

I have never heard a seller say “the trusting-buyer segment is too small to be worth it.” Instead, most recognize a trusting buyer is a wonderful thing.

I think the naivete argument is much more about the one making the argument than about any objective behavior. “You’re naïve” is typically said by someone who feels their beliefs are being attacked; someone who is personally vested in a fear-based psychology.

They are being truthful, in their own personal way. For them, trusting others feels risky. They attribute that same perception to others, so as not to feel alone. Therefore they don’t behave in a trustworthy manner, because then someone might trust them–thus proving their self-vested worldview wrong.

It turns out counter-examples are valuable—they force us to say, “well, it is possible to trust, and be trusted, and not get burned. So why are people not trusting me? Is it because I’m not selling in a trustworthy manner?”

Trust-based selling works, because most people respond very favorably to someone who consistently behaves in a trustworthy manner.  One such behavior is, occasionally, to do some trusting of others. 
 

Employees Win a Big Round Against Non-Compete Agreements

Occasionally, the law appears to coincide with commonsense. The longer the view one takes, the more likely this is.

Occasionally the long view seems captured in a single case; one which appears obvious in the rear-view mirror, but which was anything but at the time of the decision. In the US, Brown v. Board of Education comes to mind.

Last Thursday, as reported in law.com, “the California Supreme Court effectively invalidated the use of most non-compete agreements in the State.

"In sum, following the Legislature, this court generally condemns noncompetition agreements," Justice Ming Chin wrote. "Under the statute’s plain meaning, therefore, an employer cannot by contract restrain a former employee from engaging in his or her profession, trade, or business unless the agreement falls within one of the exceptions to the rule."

As the Industry Standard put it more directly, “California Supreme Court says non-compete agreements are illegal.”

While this doesn’t reach Brown v. Board of Ed status, nor is national, nor is it conclusive—I think it may come to be viewed as “about damn time.”

Non-compete agreements, in my humble opinion, are of a class with indentured servitude and restraint of trade—both of which are (largely) illegal.

(Disclaimer: I am not a lawyer, and I welcome the opinions here of those who are: I’m just speaking as a businessperson and an observer of business—and, Iike to think, on behalf of commonsense).

Non-compete clauses are common in many industries. They typically are required as a condition of employment, and they restrict an employee’s ability to leave to go to work for a perceived competitor or related business for a period of time (often 1 to 2 years, sometimes more).

One reason many employers use non-competes because they feel the company “owns” its customers or clients, and the employee shouldn’t “be allowed” to “steal” the customer. This reason is the parallel to restraint of trade.

But I have yet to meet a client or customer who enjoys being thought of as “owned” by a provider. Most of them resent that framing of the relationship. Most customers feel, as I do, that the choice should be theirs—that neither employer nor employee “owns” them, and that if they want to follow an employee to a new employer, their right to do so shouldn’t be infringed.

From a commonsense capitalism point of view, I’d simply add that if a company hasn’t been able to transfer the personal relationship to a corporate one, then the resort to heavy-handed legalisms only spotlights their management failure.

The second reason some employers like non-competes is they feel they have some “right” of control that exists after the employment contract is up. This reason is the parallel to indentured servitude, where an employee is required to “work off” an obligation over time.

Smart, successful companies—McKinsey, Goldman, PwC—have long known the value of alumni. The value of post-W2 form relationships is enormous. But not if it’s coerced.

This is simple human dignity; employers do and should have many rights, including various forms of intellectual property protection (trademarks, patents, copyrights)—but those rights have their own distinct protections and can stand on their own. Using employees as chattel to further a former employer’s competitive adventures is unnecessary—and thoroughly out of sync with a modern global business world.

That’s how I see it. What do you think?

Great Moments in Marketing Fear

I may not be a marketer by profession, but I doubt I’d get much argument from the pros about what sells best—reliably, dependably, year in and year out.

Sex. And fear.

Maybe sex is number one. But if so, it’s not by much.  Fear of fill-in-the-blank. Being left behind. Being left out. Not getting the joke. Looking dumb. Dressing wrong. Knowing the wrong people. Doing the wrong thing. Not doing the right thing. Being stuck with something that smells. Having a house that smells. Being the smell.

Identifying the right “pitch” or “hook” is, I suspect, even more important for fear-based products. Case in point: a particularly clever new product.

Introducing Slydial—see the August 2 New York Times article, Don’t Want to Talk About It? Order a Missed Call, by Matt Richtel:

When Alexis Gorman, 26, wanted to tell a man she had been dating that the courtship was over, she felt sending a Dear John text message was too impersonal. But she worried that if she called the man, she would face an awkward conversation or a confrontation.

So she found a middle ground. She broke it off in a voice mail message, using new technology that allowed her to jump directly to the suitor’s voice mail, without ever having to talk to the man — or risk his actually answering the phone.

The technology, called Slydial, lets callers dial a mobile phone but avoid an unwanted conversation — or unwanted intimacy — on the other end. The incoming call goes undetected by the recipient, who simply receives the traditional blinking light or ping that indicates that a voice mail message has been received.

Genius. Elegant in its simplicity. The sweet relief of being able to plausibly lie and avoid conflict at the same time.  It’s calling when you know someone will be out—squared.

Where does this fit in the pantheon of problem-solving inventions? It’s gotta be up there with Get Out of Jail Free cards, the morning-after pill, the hangover pill (slot as yet unfilled), homework-eating dogs, and the deus ex machina plotline.

Because almost all our worst fears involve other humans. Fear of being eaten alive in the forest by bears? Chicken——, compared to the mortification of a teenager shunned by peers. Hearing Sister Mary say you’ll rot in hell for doing whatever it was you already did. Receiving a dear John call. Calling dear John.

Slydial is unique only in one tiny detail. You already have access to voicemail. You can already send digitized voice messages. Slydial’s tiny tweak is the shortcut straight to voicemail, unbeknownst to the receiver. It is the caller’s equivalent of caller ID or spam filters. One small step for technology—one giant leap for Freudkind.

Because this permits the caller to lie. Plausibly.

The caller’s lie is this: “Hey, I tried to call you, but you were out. So I guess I’ll just have to leave this message on voicemail—not that I want to, gosh I hate to do this kind of thing so impersonally. Sorry about that, but—well, it wasn’t my fault. So, anyway, hey—I’m breaking up with you. I couldn’t make it into work today. The dog ate my homework. About your party, you know, pre-existing commitment. We’ll do lunch another time. Sorry I missed your birthday.”

All without that distaste that accompanies having to talk to the Other.

Seinfeld’s George Costanza—the patron saint of avoidance—would have loved Slydial. His spiritual progenitor, Larry David, would know just how to market it. Perhaps Slydial’s owner, MobileSphere, should hire David to consult, based on this from the article:

MobileSphere’s co-founder, Gavin Macomber, said the tool was a time-saver in a world in which conversations could waste time, whereas voice mail can get directly to the point. Part of the reason people are so overwhelmed, Mr. Macomber said, is because they are connected to devices and streams of data around the clock.

Puh-leeze. Alexis Gorman knows better. She works in marketing, and says of her Dear John slydial, “I can do without the drama…I wanted to avoid an awkward conversation.”

So does Manny Mamakis, also quoted in the article as finding it a time-saver. But then Manny speaks the Truth:

“It does make you more cowardly,” he said.

Slydial’s effectiveness—like Borat or Punk’d—depends on being relatively unknown. It loses power once it goes mass-market. “You rat, don’t think you can Slydial me!

I predict a meteoric—albeit short-lived—success for Slydial. Anything that feeds fear of other people will sell well. Sex it up and the sky’s the limit.

Sometimes fear sells you what you actually do need—say, the morning after pill.  But other times it sells you the illusion of what you need.  What you need is usually closure, not avoidance.  

 

Is Sales Efficiency Killing Your Sales?

 

A search on Google for the following sales-related terms shows:

• Sales force management 315,000
• Sales force effectiveness 113,000
• Sales force productivity 44,500
• Sales force performance 37,200
• Sales force efficiency 28,100
• Sales force compensation 15,300
• Sales force motivation 6,150
• Sales force measurement 577
• Sales force relationships 244
• Sales force trust 33

The numbers alone suggest a certain sense of priorities in the world’s interest in sales. In the broadest sense, let’s just say the reigning focus seems highly seller-focused.

Here’s a quote from what I would suggest is a fairly typical piece on selling:

XYZ has developed proprietary approaches to measuring and maximizing salesforce efficiency. Sales managers can learn, quantitatively, how their best people invest available selling time, including a measurement of expected sales dollars per sales call. This knowledge is used to improve the efficiency of others in the salesforce. Simple tools can tell the sales manager what the expected outcome would be of adding one additional sales person, of getting each salesperson to make one more call per week, and so on.

[Our] model addresses several common sales planning flaws:
* Salespeople call on too many accounts, and therefore don’t have enough time to call on those accounts often enough to be successful.
* Salespeople don’t spend enough time with the accounts that provide the best opportunity for growth.
* Salespeople spend too much time calling on low potential accounts.
* Salespeople don’t realize how precious few sales calls they have to invest [sic] each year.

Let’s refine our statement of focus in selling. The usual treatment of sales goes beyond just “self-focused.” It also defines sales heavily in terms of return on investment, and of processes. The solution to higher ROI is often found in changing processes.

For a more academic example, see a 2006 Harvard Business Review Article, The New Science of Sales Force Productivity, by Ledingham, Kovac and Simon:

Today’s most successful sales leaders are taking a more scientific approach. Savvy managers are reshaping their tactics in response to changing markets. They are reaching out to new customers in innovative ways. And they are increasing productivity by helping the reps they already have make the most of their skills and resources.
Leaders who take a scientific approach to sales force effectiveness have learned to use four levers to boost their reps’ productivity in a predictable and manageable way.
1. They systematically target their firms’ offerings, matching the right products with the right customers.
2. They optimize the automation, tools, and procedures at their disposal, providing reps with the support they need to boost sales.
3. They analyze and manage their reps’ performance, measuring both internal processes and results to determine their teams’ strengths and weaknesses.
4. They pay close attention to sales force deployment—how well sales, support, marketing, and delivery resources are matched to customers.

What is remarkable in all these lists is the virtual absence of the “R” word: relationships.

There is “scientific” (read “quantitative analysis”) study of products, automation, tools, procedures, internal processes, results, and deployment;

There is general agreement that the end result is to be judged in financial terms (ROI—effectiveness), which can be decomposed into various ratios (efficiency in general);

Mirroring this self-absorbed perspective of both design and outcome is the treatment of the customer. Almost all sales models are based on a single-transaction—with the usual “feedback” arrow saying “return to beginning and start over."

Try substituting “relationship” into this self-oriented, mechanistic and transactional mindset and there is only one kind of relationship it applies to: a one-night stand, repeated endlessly, with only the names changing.

There is no forward momentum in a series of one-night stands. No growth, no development, no connection—and no relationship. (I’m not knocking one-night stands, by the way, or saying they are "wrong;" I’m just saying call them what they are).

There is nothing wrong with counting sales dollars as a pretty good indicator of sales success. And it’s natural to want to dig deeper. But if all the digging is focused on ourselves, our processes, our metrics; and if all the relevant timeframes are shorter and shorter; and if we fall prey to the Skinnerian belief that you must shorten the time between action and monetary reward for the rats salespeople—then we conspire to reap what we sow—the one-night stand.

Great short-term performance doesn’t come from short-term selfish, transactional management. Great short-term performance is simply one part of a longer success story that comes from a long-term, relationship-driven concern for the customer.

Competing With Your Supplier is Not a Best Practice

Fortune’s Geoff Colvin writes in the July 21 edition about Gary Reiner, GE’s CIO, in Information Worth Billions: General Electric’s CIO Tells How He Makes Infotech Pay In a Big Way.

Reiner reports directly to Jeff Immelt, GE’s CEO. Immelt wants three things from him—one of which is sourcing. Says Reiner:

"…we were one of the first to do e-auctioning. Our job would be to commoditize the item as much as possible and then leverage IT to have our suppliers bid for the business.

Of course, Reiner says that though GE loves to buy through reverse auctions, it hates to sell that way.

"…the more commodity-like the part or service is, the easier it is to auction; and the more differentiated, the less easy it is to auction…we try to make more of our business portfolio be products and services that are non-commodity—that are differentiated. So we are not as auctioned on the sell side as we are on the buy side.

All well and good. And of course (insert here your favorite paragraph on the fabulous track record of GE, Jack Welch, etc.).

And yet, and yet…

I’m left with the inescapable feeling that Reiner—and Immelt, and GE—view business as being exclusively and exhaustively about competition. Including competing with your suppliers. And competing with your customers.

With suppliers, it’s about extracting the best price from an auction. With customers, it’s about extracting the best price by avoiding an auction.

In both cases, it’s about extracting maximum price in a zero-sum transaction whose boundaries are limited to product features, product quality, and price. What’s good for me is not good for you, and vice versa. We are inextricably opposed.

If that sounds perfectly obvious and normal to you, then think about what’s missing.

A relationship. An approach of collaboration. A view that this transaction isn’t a carefully negotiated one-night stand, but rather a joint journey. A view that gets beyond mere product characteristics and price. A sense of commitment to customers or suppliers. A feeling of responsibility for the health of both parties. A willingness to pool information, rather than use it as a wedge.

That’s some of what’s missing.

Let’s call GE’s view the “competition-centric” view. It was given intellectual expression and validity by Michael Porter in his 1978 classic Competitive Strategy. In that book, Porter laid out quite clearly the nature of business: it was to compete. And the nature of competition was equally clear. There were five competitive dynamics facing the firm: two of those five were the competitive struggle between the firm and its customers, and the firm and its suppliers.

In other words—business, by this view, is quite specifically about competing with your customers (and suppliers).

This view is not “wrong” per se. It helped a lot of companies—including GE—to survive and prosper.

But this is not your father’s business world. Nor Jack Welch’s. Not any longer.

Today’s "flat" business world—30 years after Porter—is about extended enterprises, not hard-walled corporations. It’s about supply chains, not about monolithic vertically integrated organizations. Best practices today are about collaboration, not competition; about influencing, not managing; about commercial relationships, not competitive ones. It’s about 1+1=3, not "do unto others before they do unto me."

Those who succeed today aren’t those who play “hardball,” but those who learned early on to play nicely in the sandbox with others. Because in today’s business world, there is no longer any separation worth the name; in a globally scaled world, everyone outsources pretty much everything. A competitor today is a collaborator tomorrow and a customer or supplier on alternate Tuesdays.

Exhibit 1: the auto industry. Toyota has a genuine cost advantage over Detroit because it has always treated its suppliers as an extended organization—not as enemies to be kept at bay and bled nearly dry. That collaborative advantage is the competitive truth—not the self-serving excuses (by Welch, among others) about health care and pension costs (which were after all freely signed into contracts by Detroit management without a gun to its head).

Yet the dominant business ideology in the West continues to be—competition. These antiquated belief systems are increasingly at direct odds with the horizontal, extended, diffuse, globally interdependent world we now live in.

And of course, that’s how it works. Beliefs die hard—well after the conditions that birthed them are long gone. Ideology is the last vestige of a changing world.

Competing with your customers? If that was ever a “best practice,” it should now be relegated to an increasingly bygone world. It’s not “bad” or “wrong”—it just doesn’t work as well anymore. And that trend is only increasing.