Processen

As MIT’s Edgar Schein has discussed, processes are a critical part of an organization’s unspoken culture. They tell people inside the company, “This is what matters most to us.” Focusing processes on the job to be done provides clear guidance to everyone on the team. It’s a simple but powerful way of making sure a company doesn’t unintentionally abandon the insights that brought it success in the first place.


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American Girl dolls

When a company does that, it’s hard for competitors to catch up. Take American Girl dolls. If you don’t have a preteen girl in your life, you may not understand how anyone could pay more than a hundred dollars for a doll and shell out hundreds more for clothing, books, and accessories. Yet to date the business has sold 29 million dolls, and it racks up more than $500 million in sales annually.

What’s so special about American Girls? Well, it’s not the dolls themselves. They come in a variety of styles and ethnicities and are lovely, sturdy dolls. They’re nice, but they aren’t amazing. Yet for nearly 30 years they have dominated their market. When you see a product or service that no one has successfully copied, the product itself is rarely the source of the long-term competitive advantage.

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