Business Lessons from my Neighborhood
A valuable business lesson is hiding in plain sight in my neighborhood.
As an avid dog walker, I observe the meandering flow of my neighborhood and track the growth of various projects. I live in Austin, where new homes are sprouting rapidly — four on my block alone.
All four houses will be beautiful and roughly the same size, and I expect to be priced similarly. However, I would purchase only one of these homes. And I knew it before a single wall went up.
Daily, I watched the effort, skill, craft, and precision of the four builders employed in the site prep and foundation. Unfortunately, three of the four zoomed through this stage with hybrid, rushed setups and shoddy practices. As I watched this unfold, I felt uneasy.
The fourth build took a month longer to complete the foundation. From the board precision used to frame the post-tension slab to the precise leveling and cabling to the care placed on the plumbing fixtures, I felt a sense of security and trust in this foundation quality. Further, I confidently believed the rest of the house would be fantastic.
Switching to business, I like using the house metaphor as a visual for strategy work. Why? Because it allows me to stress the importance of having a solid foundation and its impact on the business. Also, the strategic narrative acts as a blueprint and requires some categorizing and framing to achieve the final objective. But I digress.
What makes a strong foundation? It depends on the organization. For example, company A has a foundation rooted in culture, manufacturing, and automation, whereas company B anchors to its product development, data & analytics, and values. I’m not prescriptive. Instead, I work to uncover the organic elements that establish grit and resilience.
What are some factors to consider when thinking about foundation?
First, they tend to be competitive strengths most stakeholders understand to be true. If not, that’s a red flag. If leadership believes their foundation is marketing and customers and employees disagree, this element is aspirational rather than foundational.
Second, I usually limit it to 2–4 key characteristics. For example, it could be values, vision, technology, innovation, marketing, sales, efficiency, brand, relationships, speed, product, GTM, low cost, or genesis story — or competitive advantages.
Third, if the company falters in one of these areas, it could capitulate in value. For example, if Apple suddenly lost its marketing prowess or Southwest airlines became inefficient, I expect the organization’s value to retract.
Finally, if an organization does not have any foundational qualities, it points to a fragile company or one that needs to invest more in its core capabilities. Or, if a startup, it may take some time to discover what makes the company tick.
What is your company’s foundation?
