Innovation, USPs, and the herd instinct…

Have you ever listened to leaders talking in person, or via video or teleconference, about innovation, unique selling points (USPs) that make the company stand out from the crowd, and slogans to be used to grab the attention of potential customers? The answer is  ‘probably’, a word used to great effect in Carlsberg advertising campaigns  that trace their roots back to 1973. The Badger’s sat through many such talks over the years, but one more than twenty-five years ago generated a memorable insight that’s still relevant today.

At a senior staff gathering in a London hotel conference centre, the Group Chief Executive gave a lengthy presentation that announced and justified the company’s move beyond its software, systems development, and systems  integration roots into outsourcing and offshoring services. The presentation not only boasted about this being innovation, but also it conveyed new USPs. Many present were, like the Badger, experienced, delivery-centric people who felt the assertion that this was innovation was highly dubious, and that the new USPs were aspirational and not underpinned by any reality. The audience understood the IT market was changing, but they reacted badly to the claim this move was innovation because competitors were already way-ahead, and it felt like the company was just following the herd rather than playing to its true strengths.

In the hotel bar afterwards, a subsidiary executive provided some wise words of insight when tackled informally about the presentation. They pointed out that although the business world worships innovation as necessary for survival and growth, the reality is that true innovation is rare and it’s imitation that is the endemic driver. They used examples of the new products and approaches emerging across the IT industry at the time to illustrate that these were born out of imitation and not innovation. The executive also highlighted that since the herd mentality is a feature of human behaviour, no one should ever be surprised that companies follow the herd and assert USPs that are primarily just slogans to differentiate in business conversations with potential clients. The bigger a company, the executive asserted, the more the slogan is influenced by spin and market trends, and the more tenuous the link with raw capability. This has coloured the Badger’s calibration of company sales and marketing messaging ever since, and the executive’s innovation, USP and herd mentality insight still resonates in today’s world in which we are bombarded with information relentlessly, and organisations do everything they can to grab, keep, and capitalise on our attention. So, just remember that if something claims to be an innovation today, then be sceptical because imitation is endemic and true innovation is scarce. Similarly, always explore any asserted USP to see if it passes the ‘unique’ test amongst industry peers, because it’s the herd instinct rather than uniqueness that dominates the world of business.

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