Speed: Outpace your competition

Last evening I was privileged to hear Rod Drury speak at the Xero AGM. Rod mentioned that the company had achieved impressive growth figures in the NZ, Australia and US markets. I was left thinking that there is a very good reason why Xero is successful and will continue to be so well into the future. 

Xero is setting new standards for small business accounting. Rod reported to shareholders that the company had achieved what it had set out to do just 12 months before. Very few companies are actually able to do this. Yes it is cash rich. Its customers tell them that they love them. But there is a much more important reason.

Sheer speed. Xero has simply outpaced the competition. It is currently #1 in two countries and working hard on the third.

Charles Fine in his book Clockspeed talks about matching the speed of your business to the market. By doing so you are able to compete. Xero has set a new much higher clockspeed for their chosen marketplace. They have disrupted the market and look like continuing to transform the very way small business works. Not only is Xero growing its customer base in its three chosen markets, but continues to innovate releasing new products at an impressive pace. It is now left to others in this small business accounting niche to lift their speed to this new clockspeed, or die. 

In today’s world where there is little to differentiate one product or service from the next, speed of execution is a great approach to ensuring the long term sustainability of your business. Why not take a lesson from Xero. Forget about just meeting the competition on their own terms. Why not disrupt your industry and set a new clockspeed for your chosen niche.

Till next time,
Michael.

P.S. What are you doing to disrupt the market niche in your industry?