Asking Customer For Competitors Quotes

Toyota wasn’t really worried that it would give away its “secret sauce.” Toyota’s competitive advantage rested firmly in its proprietary, complex, and often unspoken processes. In hindsight, Ernie Schaefer, a longtime GM manager who toured the Toyota plant, told NPR’s This American Life that he realized that there were no special secrets to see on the manufacturing floors. “You know, they never prohibited us from walking through the plant, understanding, even asking questions of some of their key people,” Schaefer said. “I’ve often puzzled over that, why they did that. And I think they recognized we were asking the wrong questions. We didn’t understand this bigger picture.” It’s no surprise, really. Processes are often hard to see—they’re a combination of both formal, defined, and documented steps and expectations and informal, habitual routines or ways of working that have evolved over time. But they matter profoundly. As MIT’s Edgar Schein has explored and discussed, processes are a critical part of the unspoken culture of an organization. 1 They enforce “this is what matters most to us.” Processes are intangible; they belong to the company. They emerge from hundreds and hundreds of small decisions about how to solve a problem. They’re critical to strategy, but they also can’t easily be copied. Pixar Animation Studios, too, has openly shared its creative process with the world. Pixar’s longtime president Ed Catmull has literally written the book on how the digital film company fosters collective creativity2—there are fixed processes about how a movie idea is generated, critiqued, improved, and perfected. Yet Pixar’s competitors have yet to equal Pixar’s successes. Like Toyota, Southern New Hampshire University has been open with would-be competitors, regularly offering tours and visits to other educational institutions. As President Paul LeBlanc sees it, competition is always possible from well-financed organizations with more powerful brand recognition. But those assets alone aren’t enough to give them a leg up. SNHU has taken years to craft and integrate the right experiences and processes for its students and they would be exceedingly difficult for a would-be competitor to copy. SNHU did not invent all its tactics for recruiting and serving its online students. It borrowed from some of the best practices of the for-profit educational sector. But what it’s done with laser focus is to ensure that all its processes—hundreds and hundreds of individual “this is how we do it” processes—focus specifically on how to best respond to the job students are hiring it for. “We think we have advantages by ‘owning’ these processes internally,” LeBlanc says, “and some of that is tied to our culture and passion for students.

History favors the bold. Compensation favors the meek. As a Fortune 500 company CEO, you’re better off taking the path often traveled and staying the course. Big companies may have more assets to innovate with, but they rarely take big risks or innovate at the cost of cannibalizing a current business. Neither would they chance alienating suppliers or investors. They play not to lose, and shareholders reward them for it—until those shareholders walk and buy Amazon stock. Most boards ask management: “How can we build the greatest advantage for the least amount of capital/investment?” Amazon reverses the question: “What can we do that gives us an advantage that’s hugely expensive, and that no one else can afford?” Why? Because Amazon has access to capital with lower return expectations than peers. Reducing shipping times from two days to one day? That will require billions. Amazon will have to build smart warehouses near cities, where real estate and labor are expensive. By any conventional measure, it would be a huge investment for a marginal return. But for Amazon, it’s all kinds of perfect. Why? Because Macy’s, Sears, and Walmart can’t afford to spend billions getting the delivery times of their relatively small online businesses down from two days to one. Consumers love it, and competitors stand flaccid on the sidelines. In 2015, Amazon spent $7 billion on shipping fees, a net shipping loss of $5 billion, and overall profits of $2.4 billion. Crazy, no? No. Amazon is going underwater with the world’s largest oxygen tank, forcing other retailers to follow it, match its prices, and deal with changed customer delivery expectations. The difference is other retailers have just the air in their lungs and are drowning. Amazon will surface and have the ocean of retail largely to itself.

With the lens of Jobs to Be Done, the Medtronic team and Innosight (including my coauthor David Duncan) started research afresh in India. The team visited hospitals and care facilities, interviewing more than a hundred physicians, nurses, hospital administrators, and patients across the country. The research turned up four key barriers preventing patients from receiving much-needed cardiac care: Lack of patient awareness of health and medical needs Lack of proper diagnostics Inability of patients to navigate the care pathway Affordability While there were competitors making some progress in India, the biggest competition was nonconsumption because of the challenges the Medtronic team identified. From a traditional perspective, Medtronic might have doubled down on doctors, asking them about priorities and tradeoffs in the product. What features would they value more, or less? Asking patients what they wanted would not have been top of the list of considerations from a marketing perspective. But when Medtronic revisited the problem through the lens of Jobs to Be Done, Monson says, the team realized that the picture was far more complex—and not one that Medtronic executives could have figured out from pouring over statistics of Indian heart disease or asking cardiologists how to make the pacemaker better. Medtronic has missed a critical component of the Job to Be Done.

Rather than asking customers explicitly about feature X, Y or Z, one approach to defining the MVP is to ask, “What is the smallest or least complicated problem that the customer will pay us to solve?” This approach runs counter to the typical cry for more features, which is often based on what the competitors have or what the last customer visited had to say. The MVP is the inverse of what most sales and marketing groups ask of their development teams.

In medicine, prescription before diagnosis is malpractice. Asking the right questions will help you discover a person’s needs and concerns so that you can respond intelligently and appropriately. Yet salespeople, consultants, or managers often try to push their solutions on you before they even know what your needs are. This is a fast way to alienate people and push you toward their competitor, isn’t it?

The 4Q refers to the four questions that we suggest leaders ask customers in person (not on a survey): 1. How are you doing? 2. What’s going on in your industry/neighborhood? 3. What do you hear about our competitors? 4. How are we doing?

Why did Connex for QuickBooks Online succeed? Here are the reasons: I received free app store listings on Intuit’s website. My app was even on the first page of their store briefly. This drove large amounts of traffic to my site. I received free listings on many other sites before they started asking for a commission. I later pulled those listings, since the cost to advertise exceeded the revenue they brought to the company. These stores failed to show how many installs and conversions they generated. I had many positive and real reviews on my app store listings. I noticed competitors had hundreds of five-star reviews that mostly looked fake. QuickBooks Online had few integrations at the time. I was one of the first companies to get listed. For QuickBooks Canada and QuickBooks U.K., my app was one of the first system integrators. I had almost no competitors who serviced QuickBooks outside of the U.S. Shopify, BigCommerce, ShipStation and other companies had no native integration. Mine was one of the first. I recorded videos and added landing pages that ranked high on Google with minimal effort. Since I had a shoestring marketing budget, this was very important. The issue I had with other products was that they didn’t offer free promotion. Since my company was one of the first, we had ample time to add features and fix problems. We have a solution that is light years ahead of competitors. Why would someone want to compete with us? In the words of one of my partner companies, “We could build one, but yours would be a lot better.” My app required no desktop apps or website plugins to install. Since my audience was small business owners, the easier the install the better. Most business users have a limited understanding of websites. Asking them to change a bunch of settings or configure something on their own is daunting. We set up Connex for qualified users. Many competitors just let users go through a self-guided trial. We received feedback from many customers that they would purchase if they could make Connex work. I added a talk-to-sales component, and our conversion ratio increased. Connex was successful because I added a personal touch in a world where SaaS owners expect users to just “figure it out” on their own. Software that requires no support and maintenance is a pipe dream.

Similar to the rebates we discussed earlier, pre-payment creates a strong barrier dissuading a customer from switching to a competitor. I do not think that you will get prepayment 100% of the time, but I think you can successfully obtain this 25–35% of the time if you ask for it all of the time. When you ask, I would encourage you to make it a first concession issue rather than a first offer issue. I will offer a price that I know the other side will react to by saying it is “too high.” In response, I concede to lower my price if they pay me in advance.

Similar to the rebates we discussed earlier, pre-payment creates a strong barrier dissuading a customer from switching to a competitor. I do not think that you will get prepayment 100% of the time, but I think you can successfully obtain this 25–35% of the time if you ask for it all of the time.

Our core competencies did not extend to either end of the value chain. Steve did not let this get in the way. In one of our meetings, he said that a typical company that wanted to grow would take stock of its existing capabilities and ask, “What can we do next with our skill set?” He emphasized that Amazon’s approach was always to start from the customer and work backwards. We would figure out what the customers’ needs were and then ask ourselves, “Do we have the skills necessary to build something that meets those needs? If not, how can we build or acquire them?” Once we determined what was necessary to create value for our customers and to differentiate ourselves from our competitors, we didn’t let our lack of ability deter us from achieving this important end result—our own device.

Written sales call objective. Needs-analysis questions to ask. Something to show. Anticipated customer concerns and objections. Points of difference vis-à-vis competitors. Meaningful benefits to customers. Dollarization approach; investment return analysis. Strategies to handle objections and eliminate customer concerns. Closing strategies.

Unlike its competitors who sell preassembled merchandise, IKEA puts its customers to work. It turns out there’s a hidden benefit to making users invest physical effort in assembling the product—by asking customers to assemble their own furniture, Ariely believes they adopt an irrational love of the furniture they built, just like the test subjects did in the origami experiments.

Why are you doing this? Ever find yourself working on something without knowing exactly why? Someone just told you to do it. It’s pretty common, actually. That’s why it’s important to ask why you’re working on____. What is this for? Who benefits? What’s the motivation behind it? Knowing the answers to these questions will help you better understand the work itself. What problem are you solving? What’s the problem? Are customers confused? Are you confused? Is something not clear enough? Was something not possible before that should be possible now? Sometimes when you ask these questions, you’ll find you’re solving an imaginary problem. That’s when it’s time to stop and reevaluate what the hell you’re doing. Is this actually useful? Are you making something useful or just making something? It’s easy to confuse enthusiasm with usefulness. Sometimes it’s fine to play a bit and build something cool. But eventually you’ve got to stop and ask yourself if it’s useful, too. Cool wears off. Useful never does. Are you adding value? Adding something is easy; adding value is hard. Is this thing you’re working on actually making your product more valuable for customers? Can they get more out of it than they did before? Sometimes things you think are adding value actually subtract from it. Too much ketchup can ruin the fries. Value is about balance. Will this change behavior? Is what you’re working on really going to change anything? Don’t add something unless it has a real impact on how people use your product. Is there an easier way? Whenever you’re working on something, ask, “Is there an easier way?” You’ll often find this easy way is more than good enough for now. Problems are usually pretty simple. We just imagine that they require hard solutions. What could you be doing instead? What can’t you do because you’re doing this? This is especially important for small teams with constrained resources. That’s when prioritization is even more important. If you work on A, can you still do B and C before April? If not, would you rather have B and C instead of A? If you’re stuck on something for a long period of time, that means there are other things you’re not getting done. Is it really worth it? Is what you’re doing really worth it? Is this meeting worth pulling six people off their work for an hour? Is it worth pulling an all-nighter tonight, or could you just finish it up tomorrow? Is it worth getting all stressed out over a press release from a competitor? Is it worth spending your money on advertising? Determine the real value of what you’re about to do before taking the plunge.

Figure 2-3: Correlation Between CXi Scores and Loyalty Metrics Here’s how we know this for a fact. When we field the CXi survey, we ask consumers to tell us three things: How willing they are to make another purchase from each company, how likely they are to switch business to a competitor, and how likely they are to recommend each company to a friend. Their answers let us calculate the relationships between customer experience and three of the most common loyalty metrics used in business today: purchase intent, churn, and word of mouth. The relationships

If a market has X number of Google searches every single month, and there are Y number of competitors, and the click prices on Google AdWords are in the reasonable range, then it’s a contender.

Another thing you need to understand is what we now call the “core competencies” of your organization. What are we really good at? What do our customers pay us for? Why do they buy from us? In a competitive, nonmonopolistic market—and that is what the world has become—there is absolutely no reason why a customer should buy from you rather from your competitor. None. He pays you because you give him something that is of value to him. What is it that we get paid for? You may think this is a simple question. It is not. I have been working with some of the world’s biggest manufacturers, producers, and distributors of packaged consumer goods. All of you use their products, even in Slovenia. They have two kinds of customers. One, of course, is the retailer. The other is the housewife. What do they pay for? I have been asking this question for a year now. I do not know how many companies in the world make soap, but there are a great many. And I can’t tell the difference between one kind of soap or the other. And why does the buyer have a preference—and a strong one, by the way? What does it do for her? Why is she willing to buy from one manufacturer when on the same shelves in the United States or in Japan or in Germany they are soaps from other companies? She usually does not even look at them. She reaches out for that one soap. Why? What does she see? What does she want? Try to work on this. Incidentally, the best way to find out is to ask customers not by questionnaire but by sitting down with them and finding out. The most successful retailer I know in the world is not one of the big retail chains. It is somebody in Ireland, a small country about the size of Slovenia. This particular company is next door to Great Britain with its very powerful supermarkets, and all of them are also in Ireland. And yet this little company has maybe 60 percent of the sandwich market. What do they do? Well, the answer is that the boss spends two days each week in one of his stores serving customers, from the meat counter to the checkout counter, and is the one who puts stuff into bags and carries it out to the shoppers’ automobiles. He knows what the customers pay for. But let me go back to the beginning: The place to start managing is not in the plant, and it is not in the office. You start with managing yourself by finding out your own strengths, by placing yourself where your strengths can produce results and making sure that you set the right example (which is basically what ethics is all about), and by placing your people where their strengths can produce results.

In reviewing a business model, the key question executives should ask is this: Do the choices we have made about the company’s structure reflect our choice of primary customer? If the answer is no, competitors whose business models are consistent with their chosen primary customer will almost certainly be outplaying you.

Candidate: I sense we’re just missing something critical. Something is causing this to happen. Either customers have changed in a way that has benefited our competitors but not our client, or competitors have changed in a way that attracts new business but we haven’t. (Note how I framed the issue in concrete terms: Either competitors or customers have changed. Laying out an issue in this structured way makes it easier for the interviewer to follow your logic. I could just as easily have said, “I think we need to look into the customers themselves,” or I could have started asking questions about customers. The problem with diving in this way is that it doesn’t give the interviewer any insight into the organization of your thought process. Are you asking questions like a reporter would, or are you asking questions for a specific purpose?

There are many ways to ask customers why they churn. At Drip, any customer that canceled their account received an automated email within ten minutes of canceling. It said, “Hello, I’m one of the founders of Drip, and I’d love to hear why you decided to cancel your account.” We got a wide range of responses. Some people would tell us they were shutting their business down—which isn’t something we could fix. Others would say they switched to a cheaper tool because they didn’t need our more powerful product. Others switched to a competitor because they needed a feature we didn’t have. The key to getting useful data points out of an exit survey is to keep it short and direct, create a connection (“I’m the founder, and your feedback would help me build a better product!”), and ask for a reply—even if it’s just four or five words. This can give you a glimpse into what potential customers want, which helps guide product decisions. More often than not, you can get a quick win with churn using tactics like an email welcome sequence and in-app onboarding tools to make sure new users see value early. However, pushing churn below 2% or 3% is a long road that unfolds slowly as you refine your marketing and sales language, learn more about your ideal customer, and add more features those customers love (we covered that in the Market chapter).

Schmidt started 2012 with new, modern packaging for the deodorant, which was designed to set it apart from the competition. She looked beyond the direct-to-consumer sales channels and the natural and wellness retailers that her competitors used almost exclusively; in 2015, she expanded into traditional grocery stores and pharmacies, which allowed her to reach more customers and to enable greater access to healthy natural products. Her creativity, innovation, and hard work paid off. Schmidt earned appearances on Fox News and The Today Show; mentions on social media from celebrities and influencers; articles in national publications; and distribution on the shelves of Target and Walmart. Though it was bittersweet, Jaime realized that a larger company with more resources could bring her vision and mission to an even wider customer base, and she signed the deal with Unilever right before Christmas 2017. Reflecting on her journey, she says, “When I’m asked about what made Schmidt’s so successful, I often say that my customers were my business plan. It started when I listened to those at the farmer’s market, and it continued through each step of growth. Staying hyper-tuned-in to my customers always guided and served me.” Not sales. Not marketing. Customers, educating, and being educated.

2. MIGRATE YOUR PRODUCT LEK had to move away from ‘standard’ strategy towards analysis of competitors. This led to ‘relative cost position’ and ‘acquisition analysis’. Your task is to find a unique product or service, one not offered in that form by anyone else. Your raw material is, of course, what you and the rest of your industry do already. Tweak it in ways that could generate an attractive new product. The ideal product is: ★ close to something you already do very well, or could do very well; ★ something customers are already groping towards or you know they will like; ★ capable of being ‘automated’ or otherwise done at low cost, by using a new process (cutting out costly steps, such as self-service), a new channel (the phone or Internet), new lower-cost employees (LEK’s ‘kids’, highly educated people in India), new raw materials (cheap resins, free data from the Internet), excess capacity from a related industry (especially manufacturing capacity), new technology or simply new ideas; ★ able to be ‘orchestrated’ by your firm while you yourself are doing as little as possible; ★ really valuable or appealing to a clearly defined customer group - therefore commanding fatter margins; ★ difficult for any rival to provide as well or as cheaply - ideally something they cannot or would not want to do. Because you are already in business, you can experiment with new products in a way that someone thinking of starting a venture cannot do. Sometimes the answer is breathtakingly simple. The Filofax system didn’t start to take off until David Collischon provided ‘filled organisers’ - a wallet with a standard set of papers installed. What could you do that is simple, costs you little or nothing and yet is hugely attractive to customers? Ask customers if they would like something different. Mock up a prototype; show it around. Brainstorm new ideas. Evolution needs false starts. If an idea isn’t working, don’t push it uphill. If a possible new product resonates at all, keep tweaking it until you have a winner. At the same time . . .

In the eighties, the fast-food chain Wendy’s effectively asked America, “Where’s the beef?” The implication was that their competitors weren’t using enough meat. So what’s at stake for choosing another brand over Wendy’s? We might get stuck with a wimpy sandwich. Likewise, Whole Foods has built an enormous industry helping customers avoid the consequences of overly processed foods, and more recently Trader Joe’s has come along to help customers avoid the consequences of Whole Foods’ prices. Brands that help customers avoid some kind of negativity in life (and let their customers know what that negativity is) engage customers for the same reason good stories captivate an audience: they define what’s at stake.

Define the Profitable Core In our experience, business definition is one of the most frustrating activities for senior executives. Although business leaders know that they should have a clear answer to the question, “What is our core business?” it is difficult to arrive at a fully satisfying statement. Part of the problem arises from blurring several distinct but related topics that need to be considered one at a time and then integrated in a consistent manner or within a single framework. In working toward a useful business definition, executives need to ask themselves the following questions: What are the boundaries of the business in which I participate, and are those boundaries “natural” economic boundaries defined by customer needs and basic economics? What products, customers, channels, and competitors do these boundaries encompass? What are the core skills and assets needed to compete effectively within that competitive arena? What is my own core business as defined by those customers, products, technologies, and channels through which I can earn a return today and can compete effectively with my current resources? What is the key differentiating factor that makes me unique to my core customers? What are the adjacent areas around my core, and are the definitions of my business and my industry likely to shift, changing the competitive and customer landscape?

Thus, contrary to the folklore, entrepreneurs don't much like risk either. They use these six mindsets to mitigate it. Or manage it. Or off‐load it onto others. “Isn't your idea risky?” they will be asked. Of course, it's risky! There's market risk: Will customers buy (They bought from the outset at Budgetplaces.com; but not so fast at Nespresso.)? There's technology risk: Will the new‐fangled product actually work (Would Elon Musk figure out how to build electric vehicles with enough range?)? There's execution risk: Will the team be able to deliver what it sets out to deliver (Simon Cohen's 2 a.m. wake‐ups stole a day on his competitors.)? And more. Working counter‐conventionally, they all put one or more of the six mindsets into action.

When you craft a position statement, you want to answer these four questions: Who is your customer? Question to ask: Who will buy your product or service? Why is your startup the most/best/only . . . ? Questions to ask: What are you? How do you solve the problem? What key benefits does it provide? Questions to ask: Why would a customer choose you versus your competitors? What is your special focus or superpower? How does it realize an ultimate benefit that is important, meaningful, and transcends you as a person? Question to ask: Why are you spending your precious life doing this?

Questions to ask when analyzing a business Business - How does the company make money? - Does it seem like it should be a good business? Is it competitive? Do suppliers have too much power? Do customers value the product? Are there substitutes? - Without looking at financials, how does the company seem like it has done against competitors in its industry in terms of executing on its vision? - What reputation does the management team have? Do they seem honest? Straightforward? Valuation - What is the company's P/E multiple? Is it high or low for its industry? For the overall market right now? Why might the stock be trading at this valuation? - What is the company's free-cash flow yield? Is this a relevant metric given the stage the company is in? How does it compare to similar companies? - Is the company growing faster or more slowly than other companies with similar multiples? - Based on the number alone, does the company seem to have a rich valuation or a cheap valuation? Why might this be the case? Financials - What has been the trajectory of revenue growth over the past ten years? Why? What is it expected to do in the future? - How has the company's industry been growing? Is the company gaining or losing share in its industry? - What is the company’s level of profit margins? How does it compare to other companies in its industry? - How have margins varied over the past ten years? Why? - What percentage  of the company's costs are fixed costs versus variable costs? - What is the company's historical return on capital? Why is it high/low? What does this say about the quality of the business? - What is the trend in returns on capital? Why? What does this say about the returns the company will have to make on its future investments? - What is the company's dividend policy? Why? If they are paying no dividend or a small dividend, is there a danger that the company's management will waste shareholder's money? Technical - How have the company's shares performed against the overall market and its industry over the past twelve months? - What seems to be driving this under/over performance? - What key news events are likely to impact the stock in the future? - Do mutual funds and other large institutional investors seem to be buying or selling the shares? Sentiment and Expectations - What are the consensus earnings estimates for the next quarter and year? Do they seem aggressive or conservative? - Does consensus opinion seem overly bullish or bearish about the company's future prospects? - What insight do you have that the market might be missing that will cause the shares to appreciate?

The electronics effort faced even greater challenges. To launch that category, David Risher tapped a Dartmouth alum named Chris Payne who had previously worked on Amazon’s DVD store. Like Miller, Payne had to plead with suppliers—in this case, Asian consumer-electronics companies like Sony, Toshiba, and Samsung. He quickly hit a wall. The Japanese electronics giants viewed Internet sellers like Amazon as sketchy discounters. They also had big-box stores like Best Buy and Circuit City whispering in their ears and asking them to take a pass on Amazon. There were middlemen distributors, like Ingram Electronics, but they offered a limited selection. Bezos deployed Doerr to talk to Howard Stringer at Sony America, but he got nowhere. So Payne had to turn to the secondary distributors—jobbers that exist in an unsanctioned, though not illegal, gray market. Randy Miller, a retail finance director who came to Amazon from Eddie Bauer, equates it to buying from the trunk of someone’s car in a dark alley. “It was not a sustainable inventory model, but if you are desperate to have particular products on your site or in your store, you do what you need to do,” he says. Buying through these murky middlemen got Payne and his fledgling electronics team part of the way toward stocking Amazon’s virtual shelves. But Bezos was unimpressed with the selection and grumpily compared it to shopping in a Russian supermarket during the years of Communist rule. It would take Amazon years to generate enough sales to sway the big Asian brands. For now, the electronics store was sparely furnished. Bezos had asked to see $100 million in electronics sales for the 1999 holiday season; Payne and his crew got about two-thirds of the way there. Amazon officially announced the new toy and electronics stores that summer, and in September, the company held a press event at the Sheraton in midtown Manhattan to promote the new categories. Someone had the idea that the tables in the conference room at the Sheraton should have piles of merchandise representing all the new categories, to reinforce the idea of broad selection. Bezos loved it, but when he walked into the room the night before the event, he threw a tantrum: he didn’t think the piles were large enough. “Do you want to hand this business to our competitors?” he barked into his cell phone at his underlings. “This is pathetic!” Harrison Miller, Chris Payne, and their colleagues fanned out that night across Manhattan to various stores, splurging on random products and stuffing them in the trunks of taxicabs. Miller spent a thousand dollars alone at a Toys “R” Us in Herald Square. Payne maxed out his personal credit card and had to call his wife in Seattle to tell her not to use the card for a few days. The piles of products were eventually large enough to satisfy Bezos, but the episode was an early warning. To satisfy customers and their own demanding boss during the upcoming holiday, Amazon executives were going to have to substitute artifice and improvisation for truly comprehensive selection.

Unlike its competitors who sell pre-assembled merchandise, IKEA puts its customers to work. It turns out there’s a hidden benefit to making users invest physical effort in assembling the product — by asking customers to assemble their own furniture, Ariely believes they adopt an irrational love of the furniture they built, just like the test subjects did in the origami experiments. Businesses that leverage user effort confer higher value to their products simply because their users have put work into them. The users have invested in the products through their labor.

There are many ways to ask customers why they churn. At Drip, any customer that canceled their account received an automated email within ten minutes of canceling. It said, “Hello, I’m one of the founders of Drip, and I’d love to hear why you decided to cancel your account.” We got a wide range of responses. Some people would tell us they were shutting their business down—which isn’t something we could fix. Others would say they switched to a cheaper tool because they didn’t need our more powerful product. Others switched to a competitor because they needed a feature we didn’t have.

The lesson is, we all need to expose ourselves to the winds of change. We need to expose ourselves to our customers, both the ones who are staying with us as well as those that we may lose by sticking to the past. We need to expose ourselves to lower-level employees, who, when encouraged, will tell us a lot that we need to know. We must invite comments even from people whose job it is to constantly evaluate and critique us, such as journalists and members of the financial community. Turn the tables and ask them some questions: about competitors, trends in the industry and what they think we should be most concerned with. As we throw ourselves into raw action, our senses and instincts will rapidly be honed again.

So Jensen asked employees at every level of the organization to send an e-mail to their immediate team and to executives that detailed the top five things they were working on and what they had recently observed in their markets, including customer pain points, competitor activities, technology developments, and the potential for project delays. “The ideal top five e-mail is five bullet points where the first word is an action word. It has to be something like finalize, build, or secure,” said early employee Robert Csongor.

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