Differentiation Is The Essence Of Strategy

“Differentiation is the essence of strategy, the prime source of competitive advantage.  You earn [revenue and marketshare] not just by performing a valuable task [or service] but by being different from your competitiors in a mannor that lets you serve your core customers better and more profitably.”

“The sharper your differentialtion, the greater your advantage.”

“Every industry has leaders and laggards, and the leaders are typically the most highly differentiated.”

These words were written by Chris Zook and James Allen in an excellent article published in the November, 2011 Harvard Business Review.  The article in titled, The Great Repeatable Business Model: leveraging a simple formaula allows corporations to create new and more-lasting differentiation.

The article provides excellent food-for-thought… as well as excellent suggestions for action and execution… regarding the critically important strategy of differentiation.

This article would make an excellent discusion document for a board and/or senior leadership retreat or focused discussion.  The article proves, without a shadow of doubt, the short and long-term importance and positive results of differentiation.  The authors discuss the sources of differentiation, growth based differentiation, and supporting and reinforcing differentaition principles and culture via nonnegotiable principles and robust learning systems.

This is an excellent article that is relevent to every healthcare leader in America… and around the world.  Havard Business Review, November 2011, pages 107-114.

Read the article.  Distribute the article to your team.  Lead a discussion of the article with your team.  If you and your team are serious, you cannot help but learn and gain from this excellent and highly relevant article.

Copyright © 2011 by Dan Nielsen

Founder, National Institute for Healthcare Leadership  www.nihcl.com 

Founder, America’s Healthcare Leaders  www.americashealthcareleaders.com 

Cell 214-695-1292

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