Changing the Rules

To lead effectively you must find your true self. To live authentically you must find your true self. To contribute meaningfully of your true self to others you must find a way to differentiate their perception of you. Through differentiation you allow others to perceive the value you have to offer the relationship. In this way your unique value can enrich a whole community.

In the life of Moses and in the work of Michael Porter we find four shared techniques for achieving strategic differentiation: lowering buyers’ costs, raising buyers’ performance, linking values, and using signals and symbols to communicate value.

But these techniques are not always enough.

Many are insensitive to innate value. This is especially the case with those who have not found their own true selves. If they have been unable to choose and cherish their own unique value they are unlikely to recognize your value. This can be a major impediment and source of constant trouble.

In many cases your unique value will remain unrecognized and underutilized unless a way is found to fundamentally alter the context of the relationship. Whether the relationship is personal or commercial there are times when the existing value chains must be broken up and replaced; only then will it be possible to meaningfully link your value chains with those of the market. This often involves transforming how others perceive themselves. This may even involve helping others embrace their true selves.

Michael Porter explains, “The discovery of an entirely new value chain can unlock possibilities for differentiation… Opportunities to achieve dramatic levels of differentiation often result from reconfiguring the value chain.” Porter outlines several ways to “change the rules to create uniqueness.”

Starbucks changed the rules and essentially created a new category. For several generations small privately owned European cafes have sold good coffee, a pleasant place to meet or privately reflect, and even a statement of personal style… for a price. But in America the café became a diner, a truck stop, or a small restaurant where the coffee’s quality was undermined by a tradition of free refills. In the United States the rules were firmly focused on lowering buyers cost. Even in our most cosmopolitan cities most of the coffee served was generic and weak, but cheap. Ordering a cup of coffee and hanging around was limited mostly to bums and brassy college students.

Starbucks took a risk and stepped into this rule-bound context with something very different. Instead of a choice between regular and de-caf, the buyer is given a mind-boggling range of choices. Instead of large cans of a single generic, Starbucks offers fresh-ground exotics. Instead of Formica and fluorescent, Starbucks offers soft lights, living room sitting and, most recently, WiFi connections. Instead of turning tables, Starbucks aims at repeat sales. Today the risk seems like an inspired yet obvious choice. Given the rules originally in place, the eventual success of Starbucks was anything but obvious.

It helped that a similar model could be seen working in Europe. Starbucks started small and stayed small for a number of years. In this process Starbucks found its true self and remains a strongly value-based enterprise. These values have largely persisted (or been consciously reclaimed), even under the pressure of rapid and significant growth.

Equally important was helping buyers recognize and express their true selves. Starbucks tapped into a fundamental need for human socialization and personally chosen quality in an increasingly generic world. At Starbucks buyers are given a helpful framework within which they are empowered to be creative in making their own choices. Starbucks changed the rules, helped its buyers recognize and claim what they valued, and in the process the enterprise came to be highly valued.

Moses changed the rules: regarding what it meant to be a descendent of Abraham, regarding what it meant to be a human being, and regarding the nature of God. In changing the rules – and in creating a framework of innate value – Moses implemented his differentiation strategy.