From Competitive Advantage to Collaborative Advantage

The last 100 years of business wisdom in the West has been dominated by the notion of Competitive Advantage, whereby a company or enterprise develops a product or a set of capabilities that confers some kind of unique advantage versus its competitors, ideally over an extended period of time. The concept was championed by Michael Porter via his tomes, “Competitive Advantage” and “The Competitive Advantage of Nations”. Essentially Porter’s theory is Charles Darwin for business people. Here’s an account of our recent evolution from the agrarian through the industrial to the information age.  It is not clear from this infographic whether intelligence has increased …

If Dinosaurs ruled the Earth ...

If Dinosaurs ruled the Earth …

It’s time we moved to the notion of Collaborative Advantage in a joined up world. Innovation is now so complex that it is rare for the capabilities and intelligence required to convert a new idea into a sustainable business, product or service to reside within one individual or discipline. Alongside this, the impact of our actions on the world has become correspondingly greater and we must therefore look to collaboration as a tool if we are to have a chance of making the world a better place.

But, it’s not easy. As with Darwin’s ideas about competition, the human condition tends to place emphasis on looking after number one as a priority, especially when under pressure. So voluntary activity is necessary but not sufficient to achieve the required changes. On the positive side, some companies are taking the lead in setting the conditions where collaboration is seen to be a better option than going it alone:

Unilever are at the forefront of innovation through collaboration, offering incentives for individuals to come up with ingenious ideas. So too are many small entrepreneurial start up businesses, assisted by crowdfunding. It really is possible to be small and global now. I wrote recently about the power of Collaboration for Sir Richard Branson’s Virgin Entrepreneur blog. Read the piece here at Collaboration and Crowdfunding.

At a personal level, I was recently invited to give a guest keynote and collaborative musical experience at Henley Business School. Collaborating with people and organisations that you don’t own or control is a completely different animal compared with the traditional organisation model and it requires a completely different type of leadership. I am delighted to be associated with an institution that understands the difference and designs it into their Executive Education programmes.

We were blessed to have a guest appearance from Patti Russo, Meatloaf’s long term female singing partner. I’ve been working with Patti to develop the next stage of her career and she kindly agreed to come along as a special guest. Patti is a living, breathing example of someone who has collaborated with some of the biggest egos on Planet Earth. She performs with much of rock’s royalty including Cher, Queen and in the theatre with the LA version of “We Will Rock You”. A magical moment was when we launched into “Dead Ringer for Love” during the live performance part of the evening. The entire audience of leaders stood up to salute her! I was also privileged to do an acoustic “aftershow” with Patti in the bar at Henley, where we performed “You can’t always get what you want” and “I would do anything for love”, which included some great delegate collaboration.

I would do anything for love - with Patti Russo and Masterclass at Henley Business School

I would do anything for love – with Patti Russo and Masterclass at Henley Business School – Click the picture to book Patti for a unique experience

I’m also delighted to have been invited to join a global collaboration with Nadine Hack for a more sustainable business world. Nadine’s contribution to finding joined up solutions to complex world problems is unparalleled and she has started this network to continue and accelerate her work.

Screen Shot 2014-11-15 at 10.31.20

Nadine Hack – Leader of a Global Network for a more sustainable world – click on the picture to find out more

Action Points

  • Competitive Advantage must be matched with Collaborative Advantage
  • Collaboration is easy to say but runs counter to many people’s DNA, so we must work hard at it
  • The internet can facilitate enterprise through collaboration via crowdfunding. See Sir Richard Branson’s articles on Collaboration Virgin.com for more on this
  • Leaders can learn to collaborate if they choose to. Please get in touch with Nadine Hack or myself to discuss collaborative leadership

To finish, here’s a song from Patti that literally sums up idea of being “under pressure”:

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4 responses to “From Competitive Advantage to Collaborative Advantage

  1. Excellent article Peter. The leverage in the corporate sector is that collaboration, as you and I understand it, leads directly to competitive advantage just as night follows day. So it’s an educational journey made easier by being able to refer to real life outcomes.

    Liked by 1 person

  2. I mentioned the transition to “collaborative advantage” on many previous posts and in one chapter of my book “No Reverse Gear!”, there are still very few takers, but the psycological contract has changed for good, collaboartive commons (Rifkin) is a reality and most of my business learning and training needs to make the leap to this new distributive, collaborative, open-source sharing society. The near zero marginal cost economy and the hydrogen age will test us all – managers and everyone else. As cheap fossil fuel and exponential Debt-based neo-liberal economics collapses, our lives will be forcibly “simplified” and not in a good way.

    Liked by 1 person

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