The Fallacy and Danger of Competition

by Jul 8, 20137 comments

Sydney SymphonyThe prevailing paradigm for running modern organizations is competition.

Competition, as defined by many leadership teachers, writers and consultants, draws its analogies from war and sports. But modern organizations are not at war (or at least, shouldn’t be) and business is not a sport.

The competitive paradigm is a fallacy because it is based on a “zero-sum” model, viewing the market as a binary system, made up of adversaries, one of whom will win and take the spoils, leaving the others to lose and succumb to defeat. And while this may be a good, and even appropriate model in war and sport, it is wholly inappropriate within corporate life.

First of all, the intention should not be to eliminate an opponent, but rather to make the world a better place – or to use the contemporary business jargon – to add value. In the world of symphonies, it is hard to imagine Alan Gilbert, the Musical Director (CEO) of the New York Philharmonic Orchestra, rallying his team with the exhortation, “Let’s destroy the Chicago Symphony Orchestra!”. The very idea is laughable – there is room for many symphonies, and the more there are, and the better they all are, the richer all our lives will be. And yet the corporate ideal of ruthless competition continues to be held up, erroneously, as the essential engine of capitalism. Banks that are too big to fail, Wall Street greed, hospitals and schools that are competing with each other, nations, cities and states waging competitive battles for investment, talent and jobs, and the grievous wounds of the 2008 recession, are just some of the recent evidence that this is neither effective or good for our souls.

We have a choice about where we can invest our energy – the positive or the negative. Viewing others as competitors focuses our energy on destroying things – the negative – instead of the positive activity of building things. The negative energy of competition, at least in the corporate setting, is uninspiring because it is an affront to the soul. Many research studies have shown that stress and toxic biochemistries are generated through the use of violent language and attitudes and, conversely, love and a sense of community strengthen our immune system and nourish our spirits.

The dictionary defines competition as, “rivalry for supremacy”. But the word originates from the Latin competere, which means, “to meet, come together”. From this it can be seen how far we have traveled from the original idea to the contemporary perception of competition – largely the result of misguided modern business strategy theories. I prefer to define competition as, “Going as far as you possibly can, using everything you’ve got”.

There are two approaches to achieving greatness in organizations: making others smaller and working for their demise, or working for the ultimate success of ourselves and others. Which is more inspiring?  Which organization would you choose to work for? Which kind of leader are you?