On Relative and Absolute Quality
I sometimes struggle between relative and absolute quality, and how they affect the way we work in businesses and the success we gain. That is, I really would like to think we should strive for better outcomes as a kind of value on its own (and merit from that as business success), but I so much more see “being better than competition” as “sufficient” for most people (and frankly, it is good enough for many companies to stay in business).
In practice, the questions boils down to “we’re already better than our competition, why over-invest?” The way I hear that is “let’s cash in on our advantage now, until we lose it”. I also hear “let’s gain in short term, and figure out long-term competitiveness later”. And I can see the logic in that. But it’s the same logic that has effectively crippled so many companies and destroyed their long term profitability.
I recall reading somewhere that the founder of Ikea, Ingvar Kamprad, once said that “the worst thing that could happen to Ikea would be to go public.” He was referring to the tendency of publicly traded companies to focus on short term outcomes and shareholder value over any other business priorities. While I’m no fan of Ikea, I can appreciate the success they have built (and yea, some few of the items they have designed have appealed also to me). And I can appreciate the mindset.