In my previous post, I described a malady that plagues over 90% of emerging growth companies. I call it the Value Proposition Epidemic. It’s a landmine that can go undetected and be damaging to an organization, affecting customer experience while hindering communication and execution at the most critical stage of corporate growth.
For example, here are the individual responses from each member of the leadership team, including the CEO, of a fast growth company when asked "Describe your company’s value proposition."
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Be the best.
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We focus on solutions for our clients’ needs while handling a distributive client base. We are cost competitive while selling value though.
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Providing wisdom to our clients as we deliver directional marketing advertising solutions to help them grow their businesses through the leads we generate.
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The primary differentiator is the manner in which our sales talent uniquely presents our capabilities.
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Industry experience, suite of services, publisher relations/ negotiations, commitment to testing and research.
Notice that the Value Proposition is different for each team member.
Ripple Effects of a Foggy Value Proposition
Here are a few of the ripple effects that occur when your company’s inner circle is out of sync on the Value Proposition:
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Employees get confused on the branding and messaging.
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Customers get confused as to why they should do business with your company.
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The company is no longer easy to do business with.
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The company has less contact with customers and their changing needs.
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The Founder/Entrepreneur of the company often tries, but is unable, to physically coordinate all aspects of the products and services delivery.
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The company becomes internally focused due to the strain of overload and issues of growth.
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The Founder/Entrepreneur dilutes his/her efforts with new product developments.
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The company’s economic model cannot scale what the company cannot define; and cannot therefore determine whether it will make more money at higher volumes.
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Private Equity perceives greater risk without a clear Value Proposition.
There’s only one way the CEO and leadership team can escape the Value Proposition Epidemic; get the team in sync on the company’s unique competitive advantage. I’ll dive into that topic in my next post.
About the Author
Brent Sapp is CEO and Co-Founder of Inc. Navigator, as well as the Founder of the Economy Heroes movement (@EconomyHeroes). Inc. Navigator serves as Newport's strategic technology provider. You can contact Brent by email at brent@incnav.com or learn more about him here.
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