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Do Less Than Your Competitors to Beat Them

June 5th, 2008 @ 6:23 am

16 Comments

Categories: Strategy

Tags: 37Signals, Tools & Techniques, Entrepreneurship, Biotechnology, Project Management, Blogging, Recruitment & Selection, Management, It Operations, It service Management

Do Less Than Your Competitors to Beat ThemI love products made by 37signals and now, thanks to innovation blogger Bill Taylor, I now admire the company as much as what it makes.

As Taylor points out in an enlightening Harvard Online post, 37signals lives as a company by the same principles it embraces in its productivity software: non-complex, do more with less,  solve simple problems better than anyone else.

As company founders Jason Fried and David Heinemeier Hansson tell Taylor:

“When you’re competing against companies that have so much more, the only answer is to do less … do less than your competitors to beat them. Instead of one-upping other companies, one-down them. Instead of out-doing other products, under-do them.”

37signals has accomplished that mission with products including BaseCamp, a practical project management program; Highrise, for managing contacts; and Campfire, a real-time group chat app. Its target audience is not the Fortune 500 but rather the Fortune 5,000,000, which Taylor articulates as “software for entrepreneurs and small companies where the executives who buy the product also use the product.”

The do less to do more mantra is part of 37signals’ corporate DNA. It recently switched to a four-day work week to keep employees fresh and focused.

If you feel that you are trying to do too much with your business — creating too many products, serving too many customers, hiring too many employees, working too many hours — the 37signals story might be a good antidote.

(37signals image by Elliott P., CC 2.0)

 
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  •  
    1

    patrick_gauthier@...

    06/05/08 | Report as spam

    In Support of Less (Simply)

    I agree wholeheartedly with the author. As a pastuser of 37 Signals, their product allowed my small organization to work as though we were a Fortune 500 even though we were tiny. I love their product.

    I also love the idea that you can excel at someting small and simple and chip away at markets dominated by giants. Trying to beat monster companies by becoming as robust or as complex as they are is silly. Like Google, keep it simple stupid.

    A also applaud the idea that you can sell services to the executive who actually uses them. That's wonderful positioning and makes for a great value proposition.

    The trick, my friends, is in the pricing and the promotion. Small and simple are great goals. Just don't make the mistake of pricing yourself like you're a boutique and don't forget to market and promote your wares like a guerilla.

    37 Signals mastered simple marketing and viral promotions. Check out their pricing. That's the winning combo!

    Patrick Gauthier
    http//www.workflowIQ.wordpress.com

  •  
    2

    mrobinson@...

    06/06/08 | Report as spam

    sounds like product placement...

    Nothing against 37S, but this article and the reviewer above sound like a well-placed SEO article.

  •  
    3

    spettis

    06/05/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    Reminds me of the ever popular phrase WIN with a KISS
    What's Important Now
    Keep It Simple Stupid!!

  •  
    4

    wittsworld

    06/05/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    This is another way of saying:

    "Build a business that focuses exclusively on the needs of specific customers and gives them only what they'll pay for, and ignore everyone and everything else."

    Sounds like Strategic Marketing 101 meets Entrepreneurship 101

  •  
    5

    PSorensen-dk

    06/06/08 | Report as spam

    Strategic Focus

    "The Strategy must be clear as crystal and clearly describe how the company creates a unique position in relation to its customers and against its competitors. The organisation must fit like a glove with the strategy and a winning team of employees with the right competencies must be set. Operations must show positive figures and the key figures must point forward to show future potential of the business."

    If you are a B2B manager you may be interested in reading my blog about strategy formulation and - implementation

    www.strategyonline.blogspot.com

    Peter S?rensen

  •  
    6

    rogwithtcg@...

    06/06/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    Carried to its logical conclusion, the company should just shut down. Then it could just sit back, do nothing and collect its clients' or customers' csh and graitude for doing nothing.

  •  
    7

    rogwithtcg@...

    06/06/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    Carried to its logical conclusion, the company should just shut down. Then it could just sit back, do nothing and collect its clients' or customers' cash and graitude for doing nothing.

  •  
    8

    jwangler

    06/06/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    No valuable info on this article. Flag this for future black list.

  •  
    9

    mstevens@...

    06/06/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    There is no reason to push this "to it's logical conclusion", that misses the point. My company was just acquired a few months ago and the new company is more selective about which clients it will take. We want to offer solutions to their problems, not just complete projects. Now every company does this to some extent, i.e. we will only work with a company that will give us 30 days terms or 50% down payment. You are limiting who you will work with. The logical conclusion is not that you quit working with all companies

    In relation to the article I would like to hear more details about how 37Signals do this. What lens do they use for products and clients.

  •  
    10

    ninna.macaltao

    06/06/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    Shades of Ries and Trout's "Positioning: The Battle for your Mind", specifically the concept of contra-positioning. I was 22 when I first read it and it has helped me time and time again in my personal and business life. Thanks for the reminder!

  •  
    11

    Kendallk

    06/06/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    I've used Basecamp for managing multimedia production and love it! There's
    nothing better to break down silos and improve client relations. Basecamp helps
    us keep track of ongoing creative projects with a variety of artists and
    demanding clients.

  •  
    12

    Quench

    06/07/08 | Report as spam

    Executing what everyone else knows

    The concept isn't new, but doing it may be. The automotive industry reeks of over delivering on features people don't want or need. With the price of gas today, the most basic feature of fuel economy was overlooked by all but the few. The survivors are and will be those who deliver the essential basics.

  •  
    13

    asim.mehmood

    06/09/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    This strategy is as think is applicable and suits only special organizations who are not directly linked with customers.. like service sector..this strategy would be more appropriate for companies working in make to order mode of operation. They should be focused on their marketing area more and production sector should do less but with quality.

  •  
    14

    jijutjohn

    06/24/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    It sounds like an advertice ment for 37 signals. U could have mentioned the blue ocean strategy to beat competition

  •  
    15

    Pammi

    06/24/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    Perhaps you should be more specific, because I think some people reading this blog will just use this as another excuse to slack off.

    My company targets a specific client base...we offer them solutions and only service them with what we feel they'll benefit from, need or have requested. Most companies are so quick to bombard a client with useless products resulting in wasted time and lost revenue. Secondly, we don't bite off more than we can chew. Taking on more than you're capable of just to keep up with or beat a competitor is a wasted effort that will bear nothing more than a headache and a high-level of stress.

    Sometimes less really is more.

  •  
    16

    Miss Cybernaut

    08/17/08 | Report as spam

    RE: Do Less Than Your Competitors to Beat Them

    As for 37 signals, seems like "keeping it simple" needs hell of a lot tutorials to LEARN how to do it.
    But I guess it has something to do with wich kind of software one uses first.

    For me, activeCollab is far better solution for project management and collaboration. Its incredible easy to get the job done and without even noticing that you actually are using some new software...quite experience!

    Check it for yourself, there is a demo
    http://www.activecollab.com

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