Peer Advisory Board

One of the most important keys to growing your business is to keep evolving. Growth doesn’t happen by standing still. You need to step back from your daily operations to evaluate your position in the bigger business landscape. This is where giving your business a “power check” can help.

By immersing yourself in new ideas and frameworks, you can broaden your perspective and ensure that your business stays competitive. A powerful tool to achieve this is Geoffrey Moore’s “hierarchy of powers” from his book Escape Velocity: Free Your Company’s Future from the Pull of the Past. This framework helps businesses assess their strength in key areas to avoid being pulled down by outdated practices.

Here’s how to apply Moore’s four categories of power to assess your own business.

1. Understand Your Category Power

Category Power measures the demand for the different products and services your business offers. As a business owner, you’re likely in multiple categories, and some may perform better than others. To succeed, it’s crucial to understand which categories are thriving and which are not.

Tip: Focus on staying flexible. If a product or service is underperforming, you need the ability to jump into more promising categories quickly. Long-term success is tied to how well your business adapts to shifting demands.

2. Recognize Your Company Power

Company Power reflects your overall competitive strength and market share relative to your competitors. It’s important to assess how your business performs in each category you operate in.

Tip: Leverage your unique assets—what Moore calls your “Crown Jewels.” These are the elements of your business that give you a competitive edge. If your market share isn’t strong, focus on amplifying these strengths to stand out from competitors.

3. Gauge Your Market Power

Market Power is like Company Power but on a smaller scale, within a specific market segment. A market segment is made up of customers who share similar needs and often influence each other’s purchasing decisions. Your Market Power can be measured by your business’s word-of-mouth reputation and standing within this segment.

Tip: Pay close attention to customer feedback and reputation within your target market. Building strong relationships and encouraging word-of-mouth recommendations can significantly boost your position within your market segment.

4. Measure Your Execution Power

Execution Power is all about outperforming your competition when conditions are equal. It’s not just about the future—Execution Power focuses on protecting and growing your existing customer base.

Tip: To maximize Execution Power, you need to be adaptable. This means being willing to tweak your operations, invent new ways to serve customers, and continually measure results. Regularly refining your processes gives you the edge to stay ahead of your competitors.

Why a Business Power Check Matters

Conducting a power check is essential for businesses of any size. By periodically evaluating your strengths in these four areas—Category Power, Company Power, Market Power, and Execution Power—you ensure that your business stays competitive and adaptable.

Growth isn’t just about new products or bigger sales. It’s about knowing when to pivot, how to secure your market position, and how to leverage your business’s unique strengths to keep moving forward.

Proactive planning and power checking help your business evolve and thrive in a competitive landscape.

Is Your Business Ready for a Power Check?

Take some time to assess where your business stands in each of these categories. Whether you’re looking to secure a competitive edge or planning for future growth, a regular power check can keep your business strong and ready for whatever challenges lie ahead.