Are you sure it's a commodity?

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The first rule of competitive strategy in a commodity market is to quit thinking of your product as a commodity. You may not ever see 80% operating margins or have all the pricing power you want. You also aren't "exactly the same as everyone else."

Every interaction with your company or its products, especially for consumers, is an opportunity to build an experience and deliver value, if you understand the priorities, interests, and concerns of your customers.

Here's an example. Milk should be a commodity product. It's traded on commodities markets like oil. One cows is pretty much like the next. Except when it isn't. Organic milk, hormone- and antibiotic-milk, milk in ten different flavors, milk from a local dairy known for supporting children's charities, milk provided in glass bottles because it tastes better that way, all these deliver extra value on a commodity product. People pay a constellation of different prices for this differentiated commodity.

If even commodity businesses can differentiate, so can you.

Is it clear to everyone else?

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Often overlooked by business owners, internal communication is much more than announcing birthdays, deals, charitable campaigns, quarterly financial results.

Many leaders focus on near-term execution and problem-solving. This is a function of survival, and there's nothing wrong with surviving.

In volatile times, though, you have to tell everyone what you want next, not just what you want now. This is as true for the Fortune 50 as it is for a 5-person startup. This is just as true in times of growth as times of downsizing or trouble. Even good change is still change.

An infamous round of teambuilding sessions, off-site meetings, and training exercises can be laid at the feet of internal communication.

Maybe your company needs that. But probably not. People need regular, informal, personal communication.

There's also a place for face-to-face forums in which the rank-and-file can ask tough (or innocent) questions of top leadership.

Common gaps in internal communication include:

- What issues are personally significant to the employees, and are they aware of the company's stance and activities regarding them? Examples: employee benefits, safety (especially in dangerous industries), job security, outsourcing plans and policies, productivity enhancement.

- In plain English, what changes are happening in the organization? goals? expectations? environment? And why? And how will those changes affect the rank and file?

- What is important to the top brass? How does that big picture relate to the rank and file? Examples: where the company has to get better in order to survive or meet goals, what goals are being chosen and why

Many companies also use confidential employee surveys to help find specific gaps in their internal communications and how these gaps can be fixed.

Think of these communication as a chance to build trust and loyalty on your team simply by telling the truth. You can satisfy the need to know what's going on without divulging inappropriate information. What matters is that what's clear to you becomes clear to everyone else. Share with your team the way you see the world. It can only help.

Your biggest competitor isn't.

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You will never lose as much business to your competitors as you will to customer inaction.