A recent reader of “ROKC, Leadership built on the Return On Key Component” wrote:
“I browsed the book a bit, especially the what is a business and key component chapters. I understood key component as basically unique selling point and how to maximize returns by focusing on USP ie he takes familiar concepts and builds his own business management approach.”
The Key Component is reflected in the Unique Selling Proposition but they are not at all the same thing. This reader is making a common mistake by starting in the middle. The reader is assuming that there is a Competitive Advantage. What if there isn’t? What if the competitive advantage is no longer strong enough for the market? What if the key component needs to change? In the last case, a change in the Key Component means a change in the Competitive Advantage and consequently in the Unique Selling Proposition.
The Competitive Advantage sits in between the Key Component and USP, and is market specific. The Key Component is an asset – concrete, if you like – while the USP can be communicated in a myriad of ways depending on the product. Mixing the two means taking short cuts and lots of assumptions, which can be quite dangerous.