In an age where even the best products are quickly imitated, businesses must constantly find new ways to outpace competitors. Successful companies differentiate themselves not just with superior products, but also by how they behave toward their customers at every touchpoint: service, product development, marketing, branding, bids and proposals, presentations, negotiations, and more.

Behavioral Differentiation is emerging as the "final frontier" in competitive strategy, and Winning Behavior shows how leading companies use it to exceed expectations and outperform competitors. This eye-opening book offers case histories and examples from companies like GE, Volvo, EMC, Ritz-Carlton, Wal-Mart, and Harley-Davidson, plus interviews with executives like George Zimmer (Men's Wearhouse), Colleen Barrett (Southwest Airlines), and Gerry Roche (Heidrick & Struggles).

In today's ultracompetitive business landscape, product quality and competitive pricing are prerequisites for staying afloat. Winning Behavior reveals the secrets the best companies use -- and any business can use -- to stay at the pinnacle of success in their industry.



Table of contents

Preface

Acknowledgments



Chapter 1: The Final Frontier

Harley-Davidson's Journey

Differentiating Yourself Through Behavior



Chapter 2: We Will Assimilate You

The Entropic Action of Markets

The Dynamics of Differentiation

The Nine Domains of Differentiation

1. Product Uniqueness

2. Distribution

3. Product Market Segmentation

4. Customer Service/After-Sales Service

5. Breadth of Offerings

6. Brand

7. Size/Market Dominance

8. Low Price

9. Behavior



Chapter 3: You Are How You Behave

What Customers Expect

Gaining Ground-Positive Behavioral Differentiation

Losing Ground-Negative Behavioral Differentiation

Why Positive Differentiating Behaviors Are Difficult to Imitate



Chapter 4: The Four Ways to Create Behavioral Differentiation

The Four Types of Behavioral Differentiation

Operational Behavioral Differentiation: Setting a New Standard

Positive Operational Behaviors

Normal or Expected Server Behaviors

Negatively Differentiating Server Behaviors

Positively Differentiating Server Behaviors

Negative Operational Behaviors

Interpersonal Behavioral Differentiation: Showing That You Care Exceptional Behavioral Differentiation: Breaking the Rules

Positive Exceptional Behaviors

Negative Exceptional Behaviors

Symbolic Behavioral Differentiation: Walking the Talk

Positive Symbolic Behaviors

Negative Symbolic Behaviors

The Relationships Among the Types of Be zavioral Differentiators



Chapter 5: The Gold Standards in Behavioral Differentiation Ritz-Carlton's Gold Standards

Recruiting and Selection

Employee Orientation and Continuing Education

The Daily Lineup

Purpose Over Function-and the Authority to Resolve Problems

The Management of Measurement

Tom's and Shane's Trip from Hell

The World's Most Customer-Centric Company

How EMC Differentiates Itself

EMC's Unique Services Model

Customer Service as an Investment

Raid Escalation of Problems

Global Service Deployment

Phone-Home Capability

Guilty Until Proven Innocent

Change Control Without a Hitch

Measuring Customer Satisfaction

Helping Save Customers' Businesses After 9/11



Chapter 6: Random Acts of Kindness

What People Want

The Bell Curve of Interpersonal Behavior

Chainsaw Al and the Queen of Mean

Other Examples of Negative Behavioral Differentiation

The Jackass Defense

A Tale of Two Captains

The Best Damn Ship in the Navy



Chapter 7: Exceptional Values

The Missing Suitcase

An Important Proposal

Preparing for the Olympic Games

Getting Mutzy into Australia

The Value of Medarbetarskap

Suits and Servant Leadership

Behavioral Differences at Men's Wearhouse

A Web Site with Soul

Emotional Intelligence in Action

Representing the Customer

Exceptional BD at Men's Wearhouse

Why Doesn't Everybody Do It?



Chapter 8: Living the Promise

GAT's Competitive Challenges

The Consultant from Houston

The Selection Process

The Think Tank

The Summary Design

Drum Roll, Please

The Power of Symbolic Behaviors

Harley-Davidson and the Experience Business

Walking the Talk with God



Chapter 9: The Engines That Drive Behavioral Differentiation

The Leadership Engine

The Culture Engine

The Process Engine

The Drivers of Negative Behavioral Differentiation

Institutional Narcissism

Institutional Greed

Institutional Insularity

Institutional Schizophrenia

Institutional Scapegoating

Our Expectations of Managers





Chapter 10: Why Southwest Airlines Soars: B2C Behavioral

Differentiation

The Behavioral Differences at Southwest Airlines

The Customer Service Business

Operations as Internal Customer Service

The Southwest Spirit

Hire for Attitude, Train for Skill

Leaders tip Bench Strength

Places in the Heart

Living the Golden Rule

The Culture Committee

From Customer Loyalty to Customer Advocacy

The Behavioral Difference After September 11

B2C Behavioral Differentiation



Chapter 11: Searching for Stars: B2B Behavioral

Differentiation

Going the Extra Mile at Hall Kinion

Hall Kinion's Differentiation Strategies

Hiring Employees

Recruiting Consultants and Candidates

Differentiating HK with Customers

Hall Kinion University

Building the World's Finest Leadership Teams

The Moment-by-Moment Differences

Just Fire Me Today

Visionaries of Total Human Capital Management

Caring as a Way of Being



Chapter 12: Creating and Sustaining Behavioral

Differentiation

Lessons Learned from Companies That Exemplify BD

The Secret to Creating and Sustaining Behavioral Differentiation

Why You Should Care About Behavioral Differentiation

Products

Price

Behavior



Index



About the Author

Terry R. Bacon (Durango, CO) is the author of Selling to Major Accounts (0-8144-0462-6) and dozens of other books and publications, and the cofounder and president of Lore International Institute. David G. Pugh (Durango, CO) is cofounder and executive vice president of Lore and a recognized authority on marketing, sales, and proposal training.