SME Strategy Leadership, Management and Strategy

The Power of Differentiation With Barry LaBov

Written by Anthony Taylor | December 09

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Many organizations believe they look and feel just like everyone else in their industry. Prices are similar, products look similar, and marketing messages blur together. At the same time, leaders feel the pressure to cut costs, simplify offerings, and chase short-term wins. The result is a slow slide into commodity status that makes growth harder every year.

On this episode of the Strategy and Leadership Podcast, Anthony Taylor speaks with Barry LaBov, founder of LABOV Marketing Communications and Training and author of The Power of Differentiation. Barry has spent decades helping brands from Harley Davidson to industrial manufacturers uncover the unique value they already deliver and share it with the people who matter most.

From Cover Band To Original Act

Barry began his career as a rock and roll musician. Instead of becoming a cover band that only played other people’s songs, his group chose to write their own material. That decision shaped the way he thinks about differentiation. Great brands are original acts. They lean into what they do best instead of copying others.

In his band, Barry focused on the strengths of each player. The guitarist was encouraged to play great solos, not to fix every rhythm part. The same principle applies to organizations. Leaders who try to make every function average often dilute the very strengths that could set them apart. Differentiation starts with an honest look at what your people and products already do exceptionally well.

Your Unique Value Is Already There

Barry’s core belief is simple. Every organization is already doing something that is unique and differentiated. The problem is that teams are too close to their own work to see it, or they are quietly planning to remove the very things their customers love.

He often begins engagements by talking directly to customers. In one case, a copper producer was known as the cheap supplier because it used recycled copper and charged lower prices. When Barry and his team looked more closely, they discovered the process was the only environmentally friendly copper process in the market. That insight led to a premium positioning and a new company name and tagline. Profitability and morale both improved without changing the underlying process.

A simple rule of thumb guides this work. If something in your process or product costs more time or money, there is a good chance it is a source of differentiation. That might be a more complex weld in a rail product, a distinctive bumper design on a truck, or a higher touch service experience that customers truly value.

Beware Of The Commodity Trap

Many leaders fall into what Barry calls the commodity mindset. They assume they must look, act, and price like their competitors. Private equity owners can accelerate this trend when they remove content from products in pursuit of efficiency.

Barry shares stories of firms that stripped away small details that customers cared about, only to realize that entry-level products and flagship products felt the same. When that happens, long-time customers feel that the brand they loved has disappeared. As Barry points out, no one tattoos a commodity logo on their body. People show that level of loyalty only for brands that protect what makes them special.

A powerful diagnostic question he uses with customers is, “What should this company never ever change” The answers often highlight features, experiences, and details that leaders had been planning to remove. Once you know what should never be changed, you can explore where to simplify without eroding your core identity.

Start With The People Closest To The Work

Differentiation is not just an external marketing story. Barry emphasizes that the most important audience for any positioning work is the people who build, sell, service, and support your products. Launching a new brand story internally first helps employees understand the value they create and gives them language they can use with customers.

This internal focus is especially important for long standing companies. Many of the firms Barry works with have survived world wars, recessions, and global pandemics. When leaders claim they do not do anything special, he reminds them that such longevity is impossible without real value. Recognizing and celebrating that value can reenergize teams that have become jaded or stuck.

Avoid The Void And Lead With Openness

The conversation ends on the leadership practices that support differentiation. Barry encourages leaders to be open and vulnerable with their teams. His firm uses the phrase avoid the void. When there is a lack of information, people will fill the gap with negativity.

Instead of glossing over bad quarters or difficult changes, leaders can share what is really happening, what they know, and what might still change. That approach builds trust and makes it easier for employees to embrace new strategies. When people understand the why behind decisions, they are more likely to support the differentiation work that follows.

Key Takeaways For Leaders

  • Differentiation already lives inside your organization, often in the details you take for granted
  • Talk to customers and frontline employees to discover what you should never change
  • Be careful with cost cutting and product simplification that erodes the experiences your customers love
  • Launch new positioning internally first so employees can become ambassadors of your unique value
  • Use open communication to avoid the void and build trust while you reposition

Differentiation is not about inventing a new gimmick. It is about seeing your business the way your best customers see it, then protecting and amplifying what makes you truly valuable.

About the Host

Anthony Taylor is the CEO, Founder, and Senior Facilitator at SME Strategy. With more than 14 years of experience, he helps leadership teams create alignment, implement strategy, and achieve measurable results.

Connect with Anthony: linkedin.com/in/anthonyctaylor604

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Podcast produced by: www.rednyne.com