The Good and Bad of Competition
We who work in private industry compete all the time. Here's how it works: We're always seeking ways to both get new customers and keep the customers we've already got. Since most products and services are offered by more than one provider, we're usually in competition for those customers.
Competition can be healthy - even fun at times - but it can also lead to trouble. When "the win" becomes the be-all and end-all of our efforts at work, it's tempting to cross the line from fair competition to unethical practices such as exaggerating, lying, or cheating. Once when I worked at a bank, management wanted us to sell a product called "structured notes." Other banks sold tons of these and our institution wanted a piece of that pie. Part of the pitch management devised was the these were as "safe" as US Treasuries. "Safe" here meant that there was no risk to principle. Without getting into the details, that simply wasn't true.
A couple of years later, when I was in private practice, a former colleague from that same institution called to sell me the structured notes his institution was selling. He told me his new firm would provide a much higher interest rate than US Treasuries, or other interest-bearing instruments in the market. I told him politely that, while my clients would appreciate the higher return, I didn't want them exposed to the risk to principle. He countered this by saying the notes were as safe as Treasuries. Sounds familiar? He explained that, after all, they were guaranteed by the old, esteemed institution he had joined after leaving that former institution. I told him politely but firmly that this didn't mean they were as safe as US Treasuries.
Knowing he was a bright guy, I was at first surprised when he debated my assertion until it dawned on me that he was probably trying to build his business at this new institution and felt that he could compete effectively against other products offered by other institutions with these notes. While I don't think he was consciously trying to deceive me, I do think the competitive spirit blinded him to the truth. The pressure of competition simply obliterated his better judgement. Within a year or so of this conversation, that fellow's institution, Lehman Brothers, collapsed during the financial crisis. He was out of a job, and the customers who owned those structured notes found out they weren't as safe as US Treasuries.
The legitimate spirit of competition can energize us and spur our creativity to find ways to sell our products and services to new and current customers. That's good. I've learned to enjoy it. But when the pressure of competition tempts us to exaggerate, lie, or cheat, that's bad. And over time I've learned the one way to manage that pressure: trust in the Lord. Do your best, then leave the rest to Him. It's His will that matters anyway, not whether or not you competitive spirit results in hitting your sales goals, getting a promotion, becoming rich, or the myriad other possible results of doggedly pursuing your material goals.
These verses (1-2) from Psalm 125 seem to capture what we're talking about here:
I know you probably know that what God wants matters more than what you want. But it's good for us to remind ourselves of this. Don't you think?
Competition can be healthy - even fun at times - but it can also lead to trouble. When "the win" becomes the be-all and end-all of our efforts at work, it's tempting to cross the line from fair competition to unethical practices such as exaggerating, lying, or cheating. Once when I worked at a bank, management wanted us to sell a product called "structured notes." Other banks sold tons of these and our institution wanted a piece of that pie. Part of the pitch management devised was the these were as "safe" as US Treasuries. "Safe" here meant that there was no risk to principle. Without getting into the details, that simply wasn't true.
A couple of years later, when I was in private practice, a former colleague from that same institution called to sell me the structured notes his institution was selling. He told me his new firm would provide a much higher interest rate than US Treasuries, or other interest-bearing instruments in the market. I told him politely that, while my clients would appreciate the higher return, I didn't want them exposed to the risk to principle. He countered this by saying the notes were as safe as Treasuries. Sounds familiar? He explained that, after all, they were guaranteed by the old, esteemed institution he had joined after leaving that former institution. I told him politely but firmly that this didn't mean they were as safe as US Treasuries.
Knowing he was a bright guy, I was at first surprised when he debated my assertion until it dawned on me that he was probably trying to build his business at this new institution and felt that he could compete effectively against other products offered by other institutions with these notes. While I don't think he was consciously trying to deceive me, I do think the competitive spirit blinded him to the truth. The pressure of competition simply obliterated his better judgement. Within a year or so of this conversation, that fellow's institution, Lehman Brothers, collapsed during the financial crisis. He was out of a job, and the customers who owned those structured notes found out they weren't as safe as US Treasuries.
The legitimate spirit of competition can energize us and spur our creativity to find ways to sell our products and services to new and current customers. That's good. I've learned to enjoy it. But when the pressure of competition tempts us to exaggerate, lie, or cheat, that's bad. And over time I've learned the one way to manage that pressure: trust in the Lord. Do your best, then leave the rest to Him. It's His will that matters anyway, not whether or not you competitive spirit results in hitting your sales goals, getting a promotion, becoming rich, or the myriad other possible results of doggedly pursuing your material goals.
These verses (1-2) from Psalm 125 seem to capture what we're talking about here:
Unless the Lord builds the house,
those who build it labor in vain.
Unless the Lord watches over the city,
the watchman stays awake in vain,
It is vain that you rise up early and go late to rest,
eating the bread of anxious toil;
for he gives to his beloved sleep.
I know you probably know that what God wants matters more than what you want. But it's good for us to remind ourselves of this. Don't you think?
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