Global competition is now so intense that best practices soon become the norm, whereupon even better is needed, often quickly, if customers are to keep returning to you
The key, as Cecil Beaton, the photographer, once said is to: “Be daring, be different, be impractical, be anything that will assert imaginative vision against the play-it-safers, the creatures of the commonplace, the slaves of the ordinary”
Hence winners set aspirational long term targets – dreams that just might become reality
Such dreams might be to be the leading, biggest, best or most valuable company – ‘to be number one or two in our chosen markets’
If you’re a small or medium sized company, you might find such targets to be fanciful, but why not aim for the stars?
The downside, as Peter Lynch of Fidelity once noted, is: “Long shots almost always miss the mark” and 99% of small companies with big ambitions fail
The upside, however, is that, by the law of large numbers, a few will always win and become the next Microsoft or Glaxo – and SMEs need guys with lofty ambitions plus bags of enthusiasm and drive not only to get them up and running but also to grow them fast
If, on the other hand, you’re a large company and you’ve already had substantial success, dream targets may represent only one or two more steps up – they may not even be dreams any longer, more realistic goals with short-term deadlines
Overall, dream goals are: “What companies need to break out of a vicious cycle of competitive benchmarking, imitation and pursuit” according to W Chan Kim of INSEAD
You can’t copy others if you want to beat them – you have to aspire to be much better than them
Hence Asian car companies became the most efficient in the world – they had, and continue to have, aspirational targets such as ‘to take 30% of costs and more out of the system over the next two years’ – their mantra is ‘to get good, then better’
Jack Welch pushed for similar goals at GE: “We found that by reaching for what appeared to be the impossible, we often actually did the impossible; and even when we didn’t quite make it, we inevitably wound up doing much better than we would have done”
