An overall balance between effectiveness and efficiency must be achieved during the implementation of superior processes which support long-term differentiation from other players on the market.

Success is not a “one-man show”

Organizational structures and processes are merely the formal rules, the skeleton, so to speak, of an organization. The people who work within these structures are what really bring them to life. The basic totality of all of the values, norms, and attitudes of these people which, in turn, affect the decisions, actions, and behavior of the members of the organization is what ultimately generates the truly effective corporate culture. Whether a corporate culture encourages or tends to smother innovations and their realization depends on whether it rests on a foundation of performance, participation, and organizational structures appropriate for people and the tasks at hand, structures which favor transparent, goal-oriented corporate management and thus take into account the employees’ demands for stability of their employment relationships, recognition, participation, and promotion of competence. Communication, cooperation, and appreciation for everyone involved in an atmosphere of trust further creativity and consequently the opportunity to exploit new ideas to differentiate the company from the competition. This corporate culture which encourages innovation will be successful in the long run only if all of the members of the organization are included in the process of jointly developing a culture and identifying with it long-term.

The road to fame

A successful differentiation strategy cannot be put into place from one day to the next. Companies planning to go this route should first take the time to determine clearly in what fields their specific features make them genuinely competent. Thinking outside of the box is definitely called for here. The company Rolex, for example, is not simply good at producing watches; its outstanding achievement is found in its offer of ­luxury and ­status to its customers. This offer need not necessarily be restricted to the product line “watches”. The point here is to find the right fit between what the company does well and what customers are demanding, or – even better – what they will demand as soon as it is offered to them. Caution is advised in the selection of possible differentiation characteristics. Successful differentiation includes rejection – no one can be good and different in everything.