There’s so much more to running a business than releasing a product or offering a service. This is where intentionality, concentrated energy, and discipline come in. Scott Reese, the CEO and creator of Echo Insurance, has extensive expertise in a wide range of companies across different investing industries. In this article, he lays out his strategy for building a lasting company. His theory is based upon what he calls the “three shuns” that comprise his three-legged stool framework, namely: Specialization, Differentiation, and Institutionalization.
In this article, we discuss how these three pillars create a foundation for scalable growth and help businesses thrive, even in the most competitive and dynamic markets.
The Three Shuns: A Framework For Success
Scott Reese believes that to scale a business, its growth has to be considered in an attempt to implement it with strategy and discipline. He describes his “three shuns” in this regard: specialization, differentiation, and institutionalization. These three form the bedrock of the business approach for Scott, acting as essential support to effective scaling.
1. Specialization: Go Deep, Not Wide
Specialization is the first leg of the stool. Scott highlights the need of focusing and working to improve in a certain area rather than adopting a jack-of-all-trades approach. Scott goes on to say, “We like to think about ourselves as running a mile deep and an inch wide, rather than running the other way around when it comes to the level of focus we are taking on. What this really means is that through your focus on a given market, consumer group, or service, you might learn what differentiates them based on their pain points and problems.”
In the case of Echo Insurance, such specialization is a matter of building specific insurance covers needed by the clients and not some generalized ‘one-size-fits-all’ products. Businesses that know the intricacies of a specific specialized market can provide solutions that appeal to their audience. With such an in-depth approach, the business is bound to feel that it is truly serving the needs of its consumers and establishing expertise as well.
2. Differentiation: How to be different in a Competitive Market
In essence, niche development in most firms, where specialization may be important, is but half the battle. As Scott says, “Everyone says they do it”, which is why differentiation is the next critical leg of the stool. This is what separates a business from everybody else in that chosen niche. It is about finding that “secret sauce” that inherently makes the business distinctive and worth something to its customers.
But at Echo Insurance, differentiation comes in adding value in unexpected ways. For example, Scott’s past company, besides offering insurance, added an attorney to his staff-a service quite unthinkable in the industry of insurance, at that time. This not only added value for the consumers but cements the brand’s status as a leading player in specialized insurance. By incorporating such unique offerings within the business model, a company can build on its competitive advantage and guarantee that it stands out from a crowded marketplace.
3. Institutionalization: Creating Systems for Continuous Growth
The final leg is institutionalization. Scott says, “You’ve got to trust the talented team that’s in the organization and be able to hand over the problems and challenges.” A leader has to be able to let their teams perform day-to-day operations themselves and concentrate on developing new relationships or driving development. This involves the building of long-term internal infrastructures for the firm in repeatable systems, processes, and structures to accommodate development without causing friction. It was all about institution building to Scott: a bedrock on which to rest the weight of a bigger business, and scale well.
The Power of Balance: Why All Three Legs Matter
Scott’s theory focuses on the equality of those three principles: specialization, differentiation, and institutionalization. It is like a three-legged stool-if one leg is a little weaker than the others, it would fall. Sometimes, without having any specialization, a corporation cannot outrun the competitors. Take away the individuality, and then it becomes just another player on the field. Without institutionalization, scaling is a problem because there is nothing to sustain that underlying expansion.
As Scott says, “You gotta develop strength in all of them, or the stool topples over.” When properly applied, and balanced, these ideas become the base upon which the company can realize sustainable and robust growth. The company’s foundation is intact as it grows, its success to last well into the future.
Setting the Stage for Scalable Growth
In this world, where every organization is faced with new problems and competition day in and day out, a solid foundation is essential to resist development pressures. Scott Reese’s “three shuns”-specialization, differentiation, and institutionalization-can give a powerful backbone to building not only a successful firm but also one that can scale sustainably.
By focusing on the strategic area, creating unique value propositions and then systemizing those propositions into a scalable organization, will prepare the business owner for success. As Scott concludes, “If you get these things right in your business, you don’t have to start and stop and reset.” Instead, the business can thrive, grow, and reach new heights of success.
To learn more about Scott Reese and his approach to intentional business practices, visit his website or connect with him on LinkedIn.
