You Are the Shepherd (and Why the Non-Disclosure Agreement [NDA] Is NOT Your Friend)

You Are the Shepherd (and Why the Non-Disclosure Agreement [NDA] Is NOT Your Friend)

If you’ve ever wondered what it’s like to show your cards in business, I highly suggest you give it a shot.

Oh wait! That’s crazy talk, right?

Who was it that said, “There are two rules to business: Rule #1 — Never tell them everything you know…”

In case this is the first time you’ve read or heard that, I’ll let it sink in.

But why? Why can’t we show our cards? Why aren’t we supposed to let our competitors know how we do what we do?

The most basic assumption is that they will copy us. And in doing so, they will challenge us. Possibly undermine us. Worst case, put us out of business. Oh, the fear, the fear, the fear.

Will you take a walk with me, though? I think I have something important for you to chew on a little bit. I might even change your mind. Actually, you might even change your mind after reading what I have to say.

Let’s see…

Our fear is that our competitors will do what? Do the same thing we do, but…better? Cheaper? Uh…faster?

Let me ask you something: if your competitor can do it “better,” “cheaper,” or “faster,” doesn’t it follow that you can also do it better, cheaper or faster? I mean, if you develop a software that can create a website in 10 minutes, for example, and your competitor learns your methods and develops a software that can do the exact same work in 5 minutes, wouldn’t that mean that your software wasn’t all that great to begin with? Put it another way, if your competitor can cut the time in half to achieve the same output, all things being equal, would that mean that your software was inferior to the new product?

Think about it…

What’s so bad about learning that you have an inferior product or service? What’s so scary about being pushed to become better at what you’re selling? I mean, when it comes down to it, isn’t that what we all want? To have the best product or service?

Maybe it is or maybe it isn’t.

How about this? Take a few minutes and ask yourself the following question: Do I really want to deliver the absolute best product or service? Superior to your competitor in every way? If you answered, “yes,” then tell me how they’ll even be able to catch up with you, much less copy you? Does it matter than they learn what you’re doing or how you do it?

I’ll give you a hint: Yes it does, but then again, not at all. Let me explain.

There are two things that happen when we allow a competitor to see how we do what we do. First, they forego the investment of learning it themselves. It ultimately makes them a weaker competitor (kind of like cheating in math class — you might get an “A” this time, but you’ll probably fail the next test unless you cheat again).

That’s good for you, at least in the long run. But let’s face reality. The second thing that happens is that they get a quick leg up on you, and now you have to play catch up with them. That’s no fun at all. If they’re smart, they can develop a market right out of the gate, potentially leaving you in the dust.

But I believe in the long game. That means I don’t believe short-term gains secured by mimicking competitors yields long-term success.

If a competitor wants to copy me, I’ve already learned at least one thing about them: I’m ahead of them.

Which leads me to an even stronger truth: If I show you my hand, and you copy me, I am, by definition, leading you. Shepherding you. And I’ll be honest with you. One of the easiest ways to lead your market is by having your competitors follow you. You get them to do so by feeding them. You feed them by showing them how you do what you do. Maybe not all of it, and maybe not all at once, but certainly a little here and a little there. If they’re not going to do something unique, you might as well teach them how to be a few steps behind you, right?

That’s the thing. If you’re being somewhat transparent in how you conduct business, you’ll feel an instinctual need to remain ahead of the curve. And it won’t be your ideas about the future that you’re sharing with your competitors. No, it will be the things that you’re already doing. Which means while they’re learning your existing techniques, you’re already exploring new techniques. They are always behind and they probably don’t even realize it. By the time they’ve mimicked you, you’ve already moved on to your next iteration.

Now I’m sure you’re starting to see that part of my logic requires that you continually develop. You can’t expect to stay ahead of your competitors if you’re complacent. For this to work properly, you’ll need to shape new methods, clear new trails, and keep running out front. If you stop moving forward, you will have handed your competitor the keys to your own future.

You can’t let that happen.

To use this method effectively, you need to remain transparent about your current ideas and focus your protections around the ideas that you haven’t yet implemented. In order to do that, you’ll need to be constantly evolving and developing new ideas and charting new territory. If you’re afraid of that, then by all means, hide everything. Either way, the outside world won’t know the difference, but you and your team will.

I’ll also point out another byproduct of operating with an open hand. You plant a psychological seed that you are the trailblazer. Your competitors will look to you for what’s next. Money can’t buy that kind of chess move. Did you ever watch Twister with Bill Paxton? He had an instinct; a sense for what a tornado would do next. But he was low-rent and full of emotional baggage. His competitor, on the other hand, had more money, higher-tech equipment, and no anchors tied to his legs.

Oh wait, he did.

His particular anchor was an inherent need to look at what Paxton was doing instead of trusting his own instinct. Paxton led and his competitor followed him. Money didn’t change the conversation. His “look and feel” didn’t change the conversation. Insecurity was all that it took. And when you act out of a place of security and knowing that you’ll succeed at what you do, even if you’re telling your competitors what you’re doing and how you’re doing it, trust me when I say your competitors will follow you!

So how do you show your hand and protect your next steps at the same time?

1. Show them what you’re doing now. That’s a critical piece. If you’ve already launched this product or that service, show them how you did it. Be transparent. But…

2. Don’t show them what you’re doing next. That’s the secret sauce. You trail blaze and they follow. Show them how you conquered the first mountain, but don’t tell them you’re already strategizing on conquering the next one. They’ll be busy focusing on conquering their own first mountain.

3. Run towards something instead of away from something. Fear is behind you, pushing you to run away. When you run away form something, you tend to look backwards. Your goals are ahead of you. You can choose to be led by either, but the smarter choice in this particular journey is running towards your goals.

Where does the NDA fit into all of this? I’ll leave you to think about it, but chew on this…can they really replicate you? YOU are the shepherd.

Me? I’m a Shepherd.

Whether you know it or not, you are too.

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