THE DIFFERENTIATION INDEX™

At SHIFTPOINTS, our mission is to help companies develop a Differentiating Competitive Advantage (DCA).

Our Differentiation Index^TM is a proprietary survey that accelerates the process.

There are hundreds of organizational surveys. Some measure employee satisfaction. Some measure employee engagement. Others measure organization health.

In contrast, The Differentiation Index gathers perceptions and insights about your company's current level of differentiation and source of competitive advantage.

There are ten questions that will reveal whether your company has a clear, compelling, and truly differentiating competitive advantage.

While the survey is anonymous, respondents are asked to identify their role in the company, such as senior executive, sales, customer service, etc. (These categories are customized for every client.)

Survey participants answer questions using a five-point scale, ranging from strongly disagree to strongly agree.

In addition, respondents are prompted with a follow-up question to capture additional insights.

If they responded Strongly Agree or Agree, we ask them to describe the company's competitive advantage.

If they responded Strongly Disagree or Disagree, we ask them to provide suggestions about what the company's competitive advantage could be.

Clients have complete discretion about who should participate in The Differentiation Index process. Some will only survey executives who will be participating in The Jump Start Program, while others may decide to survey everyone in the organization.

A special version, called The Differentiation 360, extends the survey to external participants, such as customers, potential customers, former customers, partners, and more.

SHIFTPOINTS first analyzes the results by looking at the overall score.

Next, we look for dispersion among the responses. For example, we are able to identify where the executives and the salespeople disagree about the level of differentiation.

Finally, we analyze the text responses and perform pattern matching to identify key trends.

This kind of information provides critical insights that accelerate the Decide One Thing process.

SHIFTPOINTS^® helps companies develop a Differentiating Competitive Advantage.

WHY TAKE THE DIFFERENTIATION INDEX?

Most CEOs believe their company has a competitive advantage.

The reality? Very few do.

The Differentiation Index helps you discover the truth—and gives you the clarity you need to build a stronger, more valuable business.

Key Benefits:

• Assess and Quantify Your Competitive Advantage. The Differentiation Index provides a clear, data-driven score that shows exactly how differentiated your company really is. You’ll see where you stand today on a 0–50 scale and gain insights into which areas are strong—and which ones need urgent attention.

• Crowdsource Ideas from Your Team. The best ideas don’t always come from the top. By engaging your executives and employees in the survey, you’ll capture perspectives from across the team. Their collective input surfaces hidden strengths, overlooked opportunities, and new ways to win in your market.

• Identify Misalignments Before They Become Costly. A high-performing company requires alignment at the top. If your leaders aren’t on the same page about your Differentiating Competitive Advantage, that confusion filters down to employees, customers, and investors. The Differentiation Index doesn’t just measure differentiation—it reveals where your team is aligned and where critical gaps exist.

• Benchmark and Track Progress Over Time. Your Differentiation Index Score becomes a baseline. Repeat it quarterly and you’ll have a powerful way to measure progress, track improvements, and prove that your strategy is working.

• Build the Case for Action. Every CEO knows that sharpening competitive advantage is important. The Differentiation Index makes it urgent by turning vague perceptions into hard numbers. When the score is lower than expected, it creates the wake-up call leaders need to take action.

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THE FIVE LEVELS OF DIFFERENTIATION

Once you complete The Differentiation Index, we summarize the strength of your Differentiating Competitive Advantage (DCA).

In most cases, companies are surprised by the results.

Here are the five levels:

LEVEL 5 – The Only One (Score = 45-50)

• You are the dominant company in your market.
• You sell products and/or services that none of your competitors sell.
• You have unique assets, intellectual property, and/or proprietary processes that others do not possess.
• Your customers recognize you as the “only one” that does what you do.

LEVEL 4 – Elite (Score = 35-45)

• You have a clear, compelling, and truly differentiating competitive advantage.
• Customers see you as better or more specialized than your competitors.
• You have several strengths—such as brand reputation, unique capabilities, or customer experience—that set you apart.
• Competitors respect your position and try to match it.

LEVEL 3 – Competitive (Score = 20-35)

• You are competitive but not clearly differentiated.
• You win your fair share of deals, but often on price or relationships, rather than uniqueness.
• Customers see you as solid, reliable, and competent—but not truly distinctive.
• You talk about being different, but the customer does not pay a premium for it.

LEVEL 2 – Generic (Score = 10-20)

• Your messaging, offerings, and processes are similar to those of your competitors.
• Customers often see little difference between you and others.
• When you win, it’s usually because of price, proximity, or personal relationships.
• You lack a clear and compelling “reason to choose you.”

LEVEL 1 – Undifferentiated (Score = 0-10)

• Your products and services are easily substituted.
• Customers and employees struggle to explain what makes you unique.
• You are vulnerable to disruption and commoditization.
• Without major change, you risk becoming irrelevant.