Two rival CEOs are walking through the woods when they come across a grizzly bear and her cub smack in the center of the trail. One CEO freezes in his tracks. The other takes off his backpack, pulls out his sneakers, and starts putting them on. You too might find a grizzly bear in the middle of the trail maybe soon, maybe not so soon. But when you do, the key to surviving that threat or any other is performing well relative to the competition.
Performance is relative.
There are no absolute standards of success . Alternatively, if the industry is growing at 5 percent but you re striding along at 10 percent, you re a winner. Only if you know where you stand relative to the competition can you assess how well your company's strategy is working. Try to judge your progress in a vacuum and all you ll see is thin air. Improved performance, while admirable, won t ensure that you ll be ready next time there s a bear on the prowl.