A story surfaced today on TechCrunch.com claiming that a Facebook employee boasted the company “has obtained copies of proprietary Google documents outlining their social strategy.” Besides being way uncool to yammer on about at a cocktail party, it poses an interesting question: Would you even want to know your competitors’ plans?
Wouldn’t it limit your thinking – from offense to defense; from what you believe to what your competitors believe? Chasing competitors who are behind you is a dangerous business. Might you lose focus on your customers by thinking too much about your competition?
What do you think? Would you want to know their plans?
I read this and immediately thought, “Runners on second still try to steal the catcher’s signals.” That’s not 100% analogous, but it’s a good start. And sports and games serve as a useful analogy in and of themselves: More often than not, the person who acts last often has an advantage, as they get to plan their own strategy based on the actions of their opponent. That’s ignoring any assumptions about the time involved, of course – in football, you wouldn’t elect to kick the ball if you won the coin flip in overtime.
There is tremendous value in understanding what your opponent is doing. Unlike the sports and games analogy, though, in a business context, you’re not limited to a single opponent, and spending time to evaluate how to best proceed can be costly.
Consider risk/reward propositions. The risk part is the cost associated with being wrong; the reward part is comprised of the gain associated with being right. The more I understand the hows and whys of what my competitor is doing, the better I can devise an approach that effectively counters it. While I can’t quantify it, I’m guessing these gains more than outweigh the losses of plodding ahead without knowledge of what my competitors do. I’m taking the insider info virtually all the time.
Of course, all this is assuming that knowledge is absolutely legitimate. If there’s even a small chance of deception, then the choice is much more interesting – but that’s a topic for another blog post.
Bill, could not agree with you more. There is a mystique to not knowing that pushes you to wanting to stay ahead. While I’m sure it would be nice to have insight into their plans, I’d much rather have a wild imagination and plan for the worse.
Also, the pragmatist in me wonders if I were to stumble across this information, is it real or a set up? I say know who you are, what your values are, and build your strategy with that in mind instead of chasing your tail.