Breaking the Halo Effect: The Danger of Blindly Following Someone Else’s Success

Breaking the Halo Effect: The Danger of Blindly Following Someone Else’s Success

I can’t count the number of times I’ve sat in meetings, had conversations, or overheard someone boast about another company’s success, attributing it to one single factor. It’s as if we need a neat story to explain why they’re thriving, so we latch onto whatever seems most obvious. And because that competitor is successful, we assume everything they do must be right.

But that couldn’t be farther from the truth.

I’ve witnessed this firsthand with my own internal clients and operators. They’ll ask for a certain product offering because they’ve seen one of my existing clients using it. They insist it’s critical, not realizing the company they’re referencing is also my client, using our very own product. The kicker is that we know it doesn’t work. In fact, we’re planning to sunset it. Yet the simple fact that “someone else is doing it” makes people think it must be worthwhile.

That is the farthest thing from the truth.

This is a classic example of the Halo Effect, where we assume one company’s success means every action they take is correct. Think of Apple. People often believe every choice Apple makes and every product they launch is the best. That’s not true at all, but their Halo Effect is so powerful that many of us accept it without question.

Then look at Apple again as a perfect counterexample. They didn’t follow anyone else’s supposed blueprint. They didn’t look at IBM or Microsoft and say, “Let’s emulate them.” Would Apple still be around if, when they launched the iPhone, they tried to build another Nokia?

No.

They understood that just because Nokia was successful at a certain moment didn’t mean Nokia’s product offerings or business model were universally right. Apple chose its own direction, free from the lure of someone else’s success.

Would we have Apple today if Steve Jobs tried to be Nokia or Blackberry?

The moral of the story is that just because a company is doing something doesn’t mean it’s a good idea. Build your own path and follow your own lead. That’s how you create an even greater product, brand, or following, whatever you’re aiming to achieve.

Don’t assume that because a company is successful, everything they do is the right choice. From my experience in countless meetings, I can tell you that’s not true. Some of my smallest, leanest clients have proved to be the most successful. Maybe they don’t rake in 100 million a year, but they also don’t lose 150 million.

Do something right. Be your own journey. Don’t follow someone else’s path. That path is theirs, and you have yours.