Comments

When competitors are looking at you, they are looking 'up.' Conversely through your behaviour you never look ‘down’ - you always look ‘around’ – that is a great quality so continue with your respectful silence is my opinion. You set the pace in your market and wanting your share of the market, and then some is a great aspiration – it reflects your phenomenal personal standards. Badmouthing others never works - people do that to themselves by their actions. Customers are smart and recognise authenticity.

Posted by Trevor Gay at December 8, 2006 10:17 AM

Excellent point Tom...

I firmly believe in winning on your own merits and strengths as opposed to someone else's shortcomings...or, by keeping them out of the game. We can't learn and we certainly can't get better by isolating ourselves. The best incentive to be the best is to know that someone is breathing down your neck!

Posted by Michael Chaffin at December 8, 2006 10:43 AM

Competitors drive competition. Lack of competition leads to mediocrity.

Do I want my sales to be better than my competitors? Naturally!

Do I still want competitors? Of course! They are my best selling point! How my product X is better than their product Y - and it had better be!

Better for me and better for the customer. We all win!

Posted by Jack at December 8, 2006 10:52 AM

IF it works so well, why don't politicians use that strategy during campaigns?

I think that philosophy only really works when, as you point out, an industry is growing and the rising tide can raise all ships. In a shrinking or mature industry where growth is stagnant, companies are more reliant on "stealing" business from their competitors than increasing their business through more customers being added to the marketplace.

I agree that badmouthing is a horrible business practice so why does it seem to work in these circumstances?

Posted by Brian at December 8, 2006 10:53 AM

I agree with Mr. Watson but recognise that, human nature being what it is, badmouthing is going to happen. The important thing is how you handle it, both in preventing it from occurring and handling it when it happens. I buy logistics services and try to keep the tenders direct and factual. If a salesman makes a pitch that includes remarks about his competitors, my reaction is along the lines of, “I really want to hear about your business and not what you think about other carriers – I’ll draw my own conclusions.”

There’s a place for industry talk about who’s doing well and who’s messing up - and it’s with your peers in industry associations etc. BTW, for all folks in general and new salesmen picking up someone else’s old account especially, I also think that Mr. Watson’s rule should be extended to never bad-mouthing colleagues. Again, there’s a forum for that sort of thing and in public is not that place.

Posted by Mark JF at December 8, 2006 11:02 AM

I agree whole heartedly.

And the ethos of blogging ties right into this. We link to our competitors/peers almost to a fault, but in the long run if you send them away they come back because you are trustworthy.

Posted by Tom at December 8, 2006 11:15 AM

Brian - badmouthing the competition works for politicans because they don't work in an open market place - they control the rules, financing, etc. and incumbency give them advantages that are very hard to overcome.

I would think that having a better product, service, or attitude would work better in any market (expanding or contracting) - it's still an advantage (and a better way to live!)

Posted by Tom Maloney at December 8, 2006 11:17 AM

Love thine indeed - I know when Trevor & I are at Citibank N.A. making a lovely mega-deposit in our 'front-liners' account - sure we ridicule and degrade and defile the "little people" we've walked on and abused and taken advantage of - but it is just a fun thing ONLY - we really do LOVE those special people truly.

Posted by sean_love_thine at December 8, 2006 11:27 AM

Hi Mark – ‘I agree with Mr. Watson but recognise that, human nature being what it is, badmouthing is going to happen.’

What a sad statement that is about human nature – call me a wolly thinking, sandal wearing, liberal but can I just ask WHY do we have to just accept badmouthing as inevitable?

Posted by Trevor Gay at December 8, 2006 12:20 PM

Apparently Thomas Watson learned from his mistakes. In his biography (Think) it was revealed that as a salesman for NCR, prior to starting IBM, he would send a stooge into a town selling shoddy products bearing the brand of his competition. Then he would show up a short time later and sell NCR machines to replace the competing brand that he had successfully trashed.

Posted by Jim Stutsman at December 8, 2006 12:44 PM

It's often called the "abundance mentality". Over the course of several years I've gone out of my way to meet as many competitors as possible. I take them to lunch and we have spirited discussions. BTW, I've only been 'snubbed' by one competitor and he (not too surprisingly) is the only one who all the others have little respect for. MOST interestingly, I've found that there's rarely complete head to head competition which leaves room for a lot of discussion about collaboration where products and services don't overlap. There is INDEED enough work out there for everyone and there's never a need to badmouth the competition!

Posted by K. Skarritt at December 8, 2006 12:45 PM

Trevor, every guy has to feel good about themeselves, their work and everything they are associated with.
Contempt for competition is ingrained in every "successful" person. Its possible you don't hate your competition as a whole, but I am sure you think you are best in some of the departments. How different people market those points is where they differ - some do it by pointing out their advantages - the rest by point out their competitors disadvantages. Most of the time people do it when they are 'losing'.

Tom brings up Apple for a moment in his article, but Apple has always badmouthed its competition (especially Microsoft). They've been doing that for years. When will it bite them back? (I think only when a product of theirs backfires).

Posted by met at December 8, 2006 1:00 PM

Trevor & Mark - seems if one has lovemarked the brand - then that is rare enough that a "flock of seagulls" shall flap their way to one's door - eager to imbibe of said lovemark brand [tidy profit to follow] ... and nary a negative rant shall be entertained. Trevor claiming to be the 5th Beatle seldom is lovemarked.

Posted by sean_lovemark at December 8, 2006 1:13 PM

There's another reason to encourage competition in growing markets: they make your job easier! It's much easier to show someone why your company is the best at solving a given problem than to try and convince them that a problem exists to begin with.

Posted by Chris at December 8, 2006 1:14 PM

Apple's badmouthing has already backfired on themselves a couple times; they've merely reinvented themselves afterwards. Though I'm not sure whether or not you'd call those Steve and Bill commercials badmouthing... seems awfully friendly. =)

Posted by Michael Chui at December 8, 2006 1:14 PM

Its a really good thought, yet it comes from the assumption that much of it is even under your own control. In the real 'dog eat dog' internet business world, my small business can invest enormous sums of money in advertising on Google, only to discover Google advertising my competitors on my pages that permit advertisers. This 'good mouthing' of competitors is being forced on small business by Google's very powerful insistence that 'relevant links' are those who are in the very same business as I am in. I most likely have little no opportunity to point out to potential customers that many of these competitors sell inferior product, or product made from illegally clear-cut rain forest woods, or any of a number of real problems. If I attempt to address this in my own advertising, it will backfire just as Mr. Peters discusses above. This powerfully enforced 'egalitarianism' without redress means that a business must graciously accept an inadvertent and uncontrollable instrusion of its marketing investment, which may be fine for huge politically powerful corporations but is an extremely difficult for the smaller enterprises.

Posted by Margaret Schaut at December 8, 2006 2:11 PM

Have you noticed that negative reviews on Amazon all tend to have fewer positive votes?

People like to hear positive things and unconsciously cringe a bit when faced with negatives. This doesn't mean we don't like competition -- we do. In a competitive marketplace, Ray Kroc and I are on the same page. But promoting your positives and differentiation is different from pointing out your competition's negatives.

We're in violent agreement!

Posted by Stephen Denny at December 8, 2006 2:19 PM

Buyers expect sellers to provide them with propaganda as to why you're great the "they" are bad. This is known in the legal world as "puffery" and is discounted by the customer as verbal spam.

In order to gain credibilty, talk well of your competitors and even point out a flaw in your own product, (hopefully not a critical one). Everything you say from that point on will have an added sense of honesty and reliability.

Posted by Larry Dunville at December 8, 2006 2:37 PM

Met – thanks for that and I hear what you say. I guess as a ‘half full glass’ type I would rather concentrate on what I do well and stand (or fall) by that. I cannot see where any lasting competitive advantage can be gained by badmouthing opposition. More important it feels like a ‘cop out’ to simply blame others rather than first do our self-evaluation. As I have written elsewhere self-accountability is far more powerful than management supervision. I continue to wonder WHY we feel the need to badmouth.

As an aside the badmouthing of opposition in the sporting world offers some clues. Badmouthing often backfires because it will inspire the ‘victims’ of the badmouthing. In the UK we see this in football (soccer) all the time. When the press push the manager to criticise the opposition the greatest soccer managers will always say ‘I would rather let the opposition worry about us.’

Posted by Trevor Gay at December 8, 2006 3:23 PM

I love having competitors at my presentations. I let them "lead" into a conversation and then crush them on their arguement. It always brings a smile to my face when they walk out of the room. Please don't get me wrong, I am always professional.

Posted by Damon at December 8, 2006 3:32 PM

The issue which inspired this post, unless I misinterpreted, sounds like it's less about "badmouthing" than about companies trying, perhaps in vain, to secure exclusive value from a marketing investment.

I'm curious about how you'd relate this blog post to debates about "ambush marketing" prevention - where companies that sponsor a sporting event, for example, try to prohibit any marketing from their competitors, such as logos worn by athletes under contract.

Is there a line that a company should not allow its competitor to cross (such as horning in on marketing exlusivity they paid big bucks for)?

Also, does your Apple analogy really hold for companies in mature product sectors? I'm thinking Coke vs. Pepsi here. Unless they can find an innovative (and probably unethical) way to make people thirstier, they're not going to grow the pie that much, so they're battling for market share.

Posted by 123fun at December 8, 2006 4:57 PM

Great post. It's always so much easier to criticize than it is to compliment your competition, but it's one of those skills that set apart the good from the great.

Posted by markus941 at December 8, 2006 6:08 PM

I have to completely agree with you here. Bashing my competition has resulted (recently) in less business as the competition then gangs up and bashes me, making me look bad to potential customers. Others of my competition that NEVER bad mouth another competitor are still thriving thanks (partially) to all of the good "press" they get within the community.

I am now adopting a policy very similar to yours. Not only am I no longer going to badmouth my competition, I intend to be a free resource to help their carreers (and mine).

Posted by Danny at December 8, 2006 8:34 PM

Excellent post, and not just for business, but for love as well. I'm a marriage and family therapist and I can't tell you how many times I've tried to tell a husband or wife this same thing during a divorce hearing or seperation. People rarely understand this principle, but when you do the right thing and help people succeed, those people tend to want you to do well also.

Posted by Michael Smalley at December 8, 2006 8:41 PM

A couple of thoughts about "badmouthing"...

Firstly, it depends on which side of the fence one finds themselves.

If one's organization really is at or near top-of-the-heap, the short answer is to simply not comment on competiors other than to acknowledge awareness of their existence. Why?

- If the badmouthing is accurate and competitor is paying attention - hello - they will learn what their deficiencies are, and they might not have known!

- If the badmouthing is inaccurate, anyone with a clue (the best potential clients!) will realize this, with resulting damage to one's reputation.

On the other hand, if one is an outsider -- a job seeker or a potential client -- listening to the scuttlebutt can really be useful, and can help in the selection of a new employer or vendor.

I for one want to know it when a company is on the skids due to bad management or a shrinking market, because I don't want to have my livelihood or supply chain disrupted by their problems.

I also want to know when a company is a venomous competitor, because I will then know that they are very likely to be that way in all of their dealings, both internal and external, because it is part of their company culture. I don't want to mistakenly count on them to come through when it might be inconvenient to them, nor with my confidential data that might be used against me...

Posted by KT Hernandez Woods at December 8, 2006 9:10 PM

A great lesson that I need to pay more attention to! Bashing makes one seem less capable and also makes customers uncomfortable. They undoubtedly think you must bad mouth them as well.

Thanks for the Vermont picture! The weather in Kuwait isn't really wintery and your picture is helping to set the season!

Posted by kurt w at December 9, 2006 12:14 AM

Personally, i have never liked a person who badmouths others. Both in Business & personal Life.

Posted by Namith at December 9, 2006 3:36 AM

Great responses by all, however, you seem to be stuck (including you Tom) in what I refer to as the paradigm of competition.

The word competition literally means, "seeking together," and "choosing to run in the same race." Great people and great brands don't care about their competitors. They don't define themselves by competitive movements. They are simply not on the same track (mentally).

They care passionately about one thing . . . their customers. Improving their lives. Exceeding their expectations. Staying in touch with their changing worlds and feelings.

Michael Dell wasn't competing against IBM. Fred Smith wasn't competing against the USPS. Sam Walton wasn't competing against Sears. Herb Kelleher wasn't competing against United. Scott Cook wasn't competing against Microsoft. Steve Jobs wasn't competing against other mp3 players.

Follow their enlightened leads and you too will be too busy trying to improve your customers' lives to have time to even think about the "other guys," including whether or not to bad mouth them.

Posted by Tom Asacker at December 9, 2006 9:28 AM

Wow! What great comments. Mr. Asacker is right and I would like to use my son's business as an example.
My son Joel and his friend started a computer business 5 years ago and have built a $250,00 business out of nothing in the middle of nowhere. That may sound like small potato's. but keep in mind they were 18 right out of high school and opened up shop the day before 9/11. Not only did all the bankers say "Have a Nice Day" They pretty much ran away from the boys. The only two things the boys had in their favor was their knowlege of computers and the fact that they never, NEVER spoke badly to a customer or spoke badly about a competitor. They outlasted three of their competitors that we are aware of, and now are considering a move to a better location. We are now told that after the move we will probably double our business without any marketing because of word of mouth and the higher traffic area. Time will tell, but we believe it pays to be nice.

Posted by Mike Mann at December 9, 2006 10:17 AM

Tom,

Great post! I'll be sharing with our staff. You'd probably be surprised that I read your blog..I'm a pastor of a large church in Northern Nevada (www.cvcwired.com) and have been reading you since "In Search.." days...and use your material whenever I speak and do consulting.

Your post was right on...it's NOT about climbing over your competitors, it IS about being the very best that you can be (e.g. product differentiation) and fulfilling what I would call your destiny...

Thanks for your leadership!

Posted by John Jackson at December 9, 2006 11:39 AM

Tom,

I love the post. This is especially important for those of us who work in professional services located outside of major metropolitan areas. As our entire industry improves in our city, the large companies are less likely to look outside our city for those services.

Our advertising agency believes that anything that makes the industry better in our city, improves our position. That's why we devote so much time and energy to professional organizations like AIGA, PRSA and the AAF.

Posted by Nathan Schock at December 9, 2006 3:00 PM

It's generally a sign of insecurity to feel a need to badmouth others. If we offer a significant enough value, that should be evident irrespective of any competition. And if a customer hears me badmouth a competitor, "how long," he will think, "before he badmouths me, his client?"

Of course, perhaps your competitors are really just brain-dead idiots who don't have a clue, then you can.....ooops. Ummmmm, sorry about that...!

Posted by Steve Woodruff at December 9, 2006 3:56 PM

Tom - 2 deg. F - now that is winter - here east of Seattle in Douglas county @ latitude 47 - going down to 8 hours only of day light soon - love it.

Posted by sean_winter_dark at December 9, 2006 5:39 PM

'Personally, i have never liked a person who badmouths others. Both in Business & personal Life.' - Best comment of all Namith! - Says it all.

Posted by Trevor Gay at December 9, 2006 5:59 PM

The impact of bad mouthing versus not bad mouthing on one's own competitive position is probably impossible to quantify. But intuitively, I wholeheartedly agree with Tom Peters on this one. Complementing is win/win/win for everyone.

Posted by JETT at December 9, 2006 6:14 PM

Bad mouthing and being hostile to one's competitors is the wrong thing to do in this day and age. With social media and citizen activism growing from strength to strength, lack of civility will come down hard on one in the end. I like the way you describe how one should work with one's competitors (co-opetition?) to grow the pie rather than think of grabbing the remaining crumbs left on the plate.

Posted by Walter Lim at December 9, 2006 8:42 PM

"Our advertising agency believes that anything that makes the industry better in our city, improves our position. That's why we devote so much time and energy to professional organizations like AIGA, PRSA and the AAF."

Nathan Schock, this is exactly my point! Nice!

Posted by tom peters at December 10, 2006 12:41 AM

If anyone got through 37 of these great postings and decided to ask themselves today, "what's the one thing I can do to improve service to my cusomers today?"
For all the people around the world who see this, might this change the direction of commerce? Would competition, or what we think of our competitors, still be an issue?

Posted by Mike Mann at December 10, 2006 7:19 AM

Most advertising agency believes that anything that makes the industry better in our city, improves our position.

we are from;
http://www.worldbusinessforsale.com

Posted by Business for sale at December 10, 2006 7:34 AM

How do I remove your comment page as there is no visible means to egress.
I just loathe being held captive.
Geoff Cooper

Posted by Geoff Cooper at December 10, 2006 9:03 PM

Thanks Trevor.

Posted by Namith at December 10, 2006 9:47 PM

Great post by Tom and comment by Mr. Asacker. Better to apply the "golden rule" to your co-workers and clients. Doing unto them as you would have them do unto you and you won't have to worry about loving your competitors. The key is to be of service to your people and they will take care of your clients.

Posted by Andrea Riccio at December 11, 2006 12:34 AM

Hello Tom, I agree with you completely. Openess is the best advantage. Next week I will put my experience listening to you directly on Internet on www.eventbuzz.nl when you are speaking in the Netherlands (Decembre 19th. You don't mind I think) As I did with your collegeas Philip Kotler and John Kotter. Blogging is an experience everybody can endulge and it's FREE . I do it myself for 2 years now and it brings me to every managementseminar I like to hear and to every book I like to read! Blogging brought me a whole new business model and good money with my www.flabber.nl friends as well. A new business model and a new live at 44!! Openess as a goal is a great start for every person and business to redirect itself. Your open anyway so give them something to look!!

Greetings and see you the 19th. Bertrand

Posted by Bertrand Weegenaar at December 11, 2006 2:34 AM

Spot on Tom! Keeping positive and embracing peer organizations will ensure that you enrich the industry soil rather than soil the industry.

When our Lacrosse team played against good teams, we always played better ourselves. Brought out the best in us. The same is true in business.

P.S. By the way, my alma mater won the NCAA Div III National title!
http://www.messagingtimes.com/blog/?p=633

Thanks!

Posted by Tom O'Leary at December 11, 2006 4:38 AM

Another Watson rule: apparently during WW2 he developed a so-called "1% doctrine" for war profits which mandated that IBM receive no more than 1% profit from the sale of military equipment to the Pentagon. Compare and contrast...

Posted by Mark JF at December 11, 2006 9:03 AM

I'd rather have 1 percent of everything than 100 percent of nothing.

My father worked with a man in New York who raffled off his paycheck each week to everyone in the company (It might have been BBDO). A few dollars for the chance to win his paycheck. He continually ended up with more and some lucky co-worker doubled his weekly take home at the same time.

Win-Win Wow!

Posted by Tom O'Leary at December 11, 2006 11:42 AM

I think badmouthing could only work when it is part of your entire culture you are trying to create for your market. When looking at Apple, badmouthing did succeed because it supported an entire new 'culture' of people who were mainly focussed at aesthetics of the product. Rebellion against the mainstream. Now that Apple has become almost mainstream, they cannot continue being the rebel.
Any thoughts on this?

Posted by Pieter at December 11, 2006 4:41 PM

You bring up a good point Pieter. The Apple ads showing PC guy and Mac guy highlights deficiencies in the Windows OS without being mean spirited. The ads simply highlight the benefits of the Mac by putting the two competitive characters side by side in a humorous skit.

Such tactics might work best when there is a David vs. Golliath scenario. Firefox did the same with IE, although when I was at a conference in Seattle, the crowd gave the Firefox presenter some serious grief for their critical approach.

Posted by Tom O'Leary at December 12, 2006 4:53 AM

It is flatly true that doing the right thing for the client--up to and including recommending a competitor--results in better results.

A McKinsey story you'll appreciate. Howard Schwartz co-ran the financial services practice for MAC and later, Gemini Consulting. One day he got a call from his US McKinsey counterpart, asking his assistance.

The McKinsey partner explained that his team had failed to do an acceptable job for a particular client, and his backup team wasn't available or good enough for a do-over. He explained to Howard the job was important enough and timely enough that he would recommend Howard to do the work.

Howard couldn't believe his ears, but he quickly took on the job, got some top-notch staff and did a bang-up job. He then said to the client, "now you've seen what we can do and the quality of our people, waddya say you give us some more work?"

The client said, "Howard, the work was great and your people are first-rate, and we thank you very much. And--we would never leave McKinsey, because they were big enough to invite you in." Howard shook his head and had to agree with the client.

This the paradox of trust. If you're willing to lose it all on principle, you get it back--maybe not on this job, or even this client, but you get it back.

But it is a paradox. You must give up the winning as the objective. You cannot win by using trust and client orientation as a strategy to your own selfish ends. You actually have to give it up. Then you get it. That's the paradox.

It may sound like Zen, but it ought to be pure Harvard Business School.

Posted by Charles H. Green at December 13, 2006 9:14 PM

Assuming that you are in a good and ethical business trying to help the world and its population getting better, isn't it great that there are more people doing the same staff like you? So, the more competition there is, the better is the world, right? And then, you need to get even better to attract the right crowd. That means innovation to make your environment even more better.

But bad-mouthing? It is just like - i bad mouth my competition, so something must be wrong. I am not much better than them. I am the same, otherwise, I wouldn't even be considered as competition - I would have a market on my own (blue ocean strategy or what?). And when i badmouth my competition, may be I even badmouth my client, once they leave me? A way to attract clients? Now way. Like - never burn your bridges when you leave a company, I would say, never badmouth your competition!!

Posted by Andreas at December 14, 2006 3:46 AM

I applaud you in this. I always try to give advice to anyone who seeks it, even competitors. As a novice in the author/speaker business I have discovered two types of Professional Authors and speakers (and I am talking about the real BIG neames in the business).

1. Those who welcome me and my efforts, offer advice, introduce me to others who can help me get speaking gigs in companies. These people want me to succeed and do not view my getting a booking as somehow taking one from them.

2. Then there are those who are rude, critical, dismissive and jealous.

I find those in the first category to be more happy in life. Both sets have examples with financial success....but the ones who are helping others just seem to have better lives.

If more people had Tom's attitude than peace would prevail.

Posted by Thom Singer at December 14, 2006 10:44 AM

"Love your enemies, and do good to those that spitefully use you." Those are ancient words that still hold great value today. They are words we should live by both personally and professionally. Thanks for that reminder, Tom. Considering the season, it is aptly timed indeed.

Posted by Paul Chaney at December 14, 2006 2:42 PM

Focusing on limiting or bloacking out your opposition, just focuses your energy in the wrong direction. If that energy is used to improve yourself then you have the best competitive advantage available.

Plus, life's too short!

Posted by Richard Michie at December 14, 2006 7:03 PM

I don't believe in competition. When I tell most people that, they look at me incredulously.

I know most of my colleagues in the P.R. industry in my local area, and many around the country. We work together, share ideas and refer business to each other.

The best way to get rid of the word competition is to make sure that you have a solid USP. If everyone did, there would be no competition.

Posted by Margie Zable Fisher at December 18, 2006 9:40 AM

I agree with you, Tom.

By having substantial quality and vastly different approach in offering, an organization (or an individual) can make comparison/competition a passé, thus avoid the need even to refer.

If one is GOOD in his trade, he is likely to win. Instead of bad mouthing around, the competitor can spend their time wisely in becoming BETTER, a meaningful alternate.

Cheers!
Arun Chearie

Posted by Arun Chearie at December 18, 2006 3:42 PM

In my 46 years working in the same industry, I have seen large privately and publicly owned originations try to take over the Industry I’m involved with.
The one thing I have come away with is “No One Ever Gets To Owen The Industry” by sharing it’s easer to make the pie larger
By making the pie larger and sharing, this then puts you at the head of the pack, an enervator not just one of the hundreds of me two’s.
Long term business is not a sprint it’s a marathon.

Posted by Michael A. Duff at December 21, 2006 1:28 PM