The conference room was quiet as the year end financials were passed around the room. Glancing at the numbers confirmed what many had feared; another mediocre year. Revenues were slightly up and profits considerably down. How could that be? Everyone had worked hard. The team had begun the year with energy and bravado, with a plan to make vast strides at closing the gap on the industry leader. But twelve months later reports were in that the industry had had a good year with significant increases in revenue and profits for the leading firms.

"Where do you think we rank in our market?" the CEO prodded.

"Can't be better than 5th or 6th," answered a glum VP of Marketing.

"Well, that will never do... so what are we going to improve?" challenged the CEO.

"The competition is winning with a better product at the same price, said the Sales Manager. "We'll have to improve our quality and match their service or lower our price if we want to take share."

"Is operations up to the task?" asked the sharp witted CFO.

"We'll give it our best," replied the VP of Operations. "As long as the competition doesn't improve too much we ought to be able to close the gap with a few capital improvements. But then sales has to sell what we make. No more excuses."

"Well, we are going to need to add a few field engineers and upgrade the marketing materials, if we really want to match the leaders", the VP of Sales chimed in.

"Now wait a minute," the CFO interrupts. "Our profit margins are already too low and these costs will just push them down more… this plan is heading the wrong way."

"So what's the alternative?", the Sales Manager asked. "Do we sit back and loose more ground? We need a full press to catch up to the competition. We've been slipping for years and we either invest to reverse that trend or go out of business."

"Okay, I've heard enough", said the CEO. I want each of you to put together a plan by next Friday to improve your department so we are better than our rivals. We'll work the profitability issues in the budget, but for now I need each of you to give me a realistic plan to become the best in the industry. We will accept nothing less than 'excellence in execution' from all departments. Within three years we need to be the best in our industry."

Ever heard a conversation like that? Do you think this company will substantially improve its position over the coming years? If they have a boat load of cash and other resources they might have a shot at catching up. But what is too often overlooked is that the competitors are not standing still. Each hears the pounding of the others chasing them, and so urges their team on to greater achievements. It is only a conceited team that assumes that their rivals are incompetent or blind to the need to continuously improve. In today's competitive world, striving for and realizing substantial improvement is only table stakes in the survival game.