In 1956, while studying racehorse performance, a group of scientists uncovered a fascinating discovery. In the long run, the number 1 winning racehorse earned up to ten times more in prize money than the number 2 racehorse. However, they found that the number one racehorse was less than 1% faster than number two. They called this strange phenomenon the ‘Razor’s Edge’.
The Razor’s Edge is described as a small, yet consistent advantage, resulting in a massive, non-linear positive effect on performance and success.
What we know now is that the Razor’s Edge is not limited to horse racing, but is equally valid in business. No matter the economic downturn and other market conditions, there will always be 10% of companies thriving. In comparison, the other 90% merely survive.
If you are doing what everyone else is doing, then you are not differentiating yourself from the competition, and you are probably stuck.
Here is a fact about success. Successful people do not know much more than you do. They also do not necessarily work much longer hours than you do. They only do a few things slightly different: a few small advantages in certain key areas, which are systematically, consistently, and relentlessly leveraged.
They create a Razor’s Edge – the small difference between a business that prospers beyond imagination and a company that struggles to survive.
“I’ve found that small wins, small projects, small differences often make huge differences.” – Rosabeth Moss Kanter