Rewards and punishments among innovators and second movers.

Rewards and punishments between innovators and second movers

The first version of anything—products, team cultures, projects—often gets away with flaws such as half-baked features and visible bugs. But when people try to use the same argument to justify building their own imperfect products, they fall flat. A critical distinction is missing: the rules aren’t the same. The similarities are only skin-deep.

Only innovators get an allowance for imperfections; second movers don’t.

Innovation brings awe and wonder by creating something new. Most users are ecstatic and barely mind the glitches; they understand that the first version is the trailblazer and its creators are learning what the product should be as they build it. And an alternative either doesn’t exist or is something from a previous generation (e.g., GPS vs. compass).

Mimetic mishaps

Companies that are second movers, aspiring to make similar products to compete, don’t get the benefit of user forgiveness, because a reference has already been established. If they want a spot in the sun, their product must get it right from the beginning or risk being uncompetitive out of the gate—unless they have deep pockets to buy market share.

These principles aren’t just for products; they also apply to company culture and team behavior. When startups are taxiing to take off, everything is being figured out for the first time: identity, products, attitude, and more. Although missteps are made, people are understanding and forgiving—and they learn from them.

Trouble starts when leaders suggest that their teams should build a minimum viable product like Company A or adopt a culture like Company B. Mimicking a product or culture may feel right in their minds, but they’re dead wrong. “Minimum,” in this context, must top Company A’s maximum—that’s what makes it viable. And an existing company culture won’t simply evaporate to make room for another; values and behavior take root over time.

Second movers can’t release unpolished products or copy undeveloped cultures. Doing so only leads to disagreement and conflict. Teams and customers become frustrated because they both know that the product is inferior and that a culture is already established.

A light at the end of the tunnel

So, are second movers doomed? Far from it. There are plenty of opportunities for them:

  • Build a superior product
  • Make it more intuitive
  • Implement more features
  • Design it to be simpler to use

And on the culture front:

  • Recognize and reward excellence
  • Cultivate team longevity
  • Celebrate milestones and significant accomplishments

In 1979, Sony released the first Walkman. It was bulky, the headphones had poor sound quality, and AA batteries barely lasted six hours. Yet, they could afford all those shortcomings because they were the innovators, and their product couldn’t be compared to anything else. People loved that they could enjoy their tunes on the go; all else was forgiven. Later, after the Walkman had established itself as the reference for portable players, competitors like Panasonic and Toshiba had to create better versions of the product to have a chance to compete.

On the other hand, Apple Maps should have waited until the product was more polished, as there were other, higher-quality products on the market, such as Google Maps. If paper maps were still the norm, even with all its flaws, Apple Maps would have been a fantastic and innovative first product.

Takeaway

First movers earn forgiveness by creating wonder; second movers succeed by building it better. Whether it’s a product or a culture, the lesson is clear: innovation excuses rough edges, imitation demands excellence.

Either first or second, what’s going to be your move?

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