Seven Positioning Mistakes to Avoid

Democratizing Decisions

Involving too many people in positioning decisions can dilute a firm's strategic direction. David Baker warns against democratizing these decisions, as it can lead to safer but less effective strategies. He emphasizes that while feedback is valuable, the final decision should rest with the principal or leadership team to avoid losing focus on market demands 1. Blair Enns adds that including others might lead to disappointment if they believe their input will significantly impact the decision 2.

   

Overvaluing Variety

Prioritizing variety over focus can hinder a firm's ability to establish deep expertise. David Baker notes that while variety might seem appealing, it often detracts from building a strong market position 3. He argues that a focused approach allows for deeper expertise and better financial outcomes. Blair Enns supports this by highlighting that creative professionals often fear boredom from narrowing their focus, but this fear rarely materializes 4.

   

Odd Combinations

Attempting to combine unrelated sectors in positioning can lead to confusion and lack of clarity. David Baker shares examples of firms trying to merge disparate categories, like luxury tourism and credit unions, which often fail to resonate with clients 5. He advises against creating new category labels that don't align with how clients self-identify. Blair Enns adds that such combinations can confuse prospects and dilute the firm's message 6.

   

Strategy vs. Implementation

Distinguishing between strategy and implementation is crucial in positioning. David Baker explains that the value of a firm lies in its strategic thinking, not in the execution of tasks 7. He stresses that positioning should focus on the strategic aspects, as implementation is easily substitutable. Blair Enns notes that firms often mistakenly emphasize service over expertise, which can lead to being perceived as mere vendors 8.