Man with a puzzled expression as he realises his business Policies Losing Their Audience to Phantom Competitors and Policy Templates

Policies Losing Their Audience to Phantom Competitors

There’s a moment in business where competitiveness begins to feel necessary. Nothing on the surface is going wrong; there’s steady growth and an organic rhythm in the team. Yet a whisper of doubt tells the leadership team that they can do more if they compare themselves to the neighbouring garden.

Therefore, decision-making starts referencing what sounds pressing, popular, or trending rather than what was intentionally set for the business and its customers. The focus moves away from those the business exists to serve and towards a perceived external benchmark. It’s often when policy templates start replacing intention.
 
In the initial stages, this is disguised as understanding the market and getting a better handle on the target market. Rarely is it considered competitiveness, more staying relevant (not falling behind).

When comparison replaces understanding

When comparison replaces understanding
Let’s be clear, founders don’t suddenly abandon their values. It’s usually a subtle shift where they stop questioning what their decisions are being referenced against. So when attention turns outward, policies and procedures begin to lose their original purpose.
 
Instead of taking the time to clarify the direction of the ecosystem, it appears more conducive to use templates. The reasoning is to allow for better concentration to gain value in the chatter about phantom competitors. The results are to detract from reflecting the needs of the business and its audience. Instead, they begin to mirror what is seen elsewhere.
 
This is where ethical misalignment begins to form.

“It’s not through intent, but through substitution.”

The relationship problem at the centre of competitiveness

In personal life, relationships are not sustained through comparison. A person does not maintain friendships by outshining others. Multiple relationships can coexist because each one serves a different role, a different understanding, a different need. Business relationships function in much the same way.

When competitiveness becomes the dominant reference point, the business stops relating to its customers on their own terms. Instead, decisions are shaped in response to others who are not part of that relationship at all.

At that point, policies are no longer written for the customer. They are measured against something else external to the ecosystem.

If this Insight has surfaced questions about decision-making, boundaries or expectations beginning to take root, the private mailing list is the space for reflection.

Policy templates as gestures, not protection

Policies and procedures are often treated as a defence, with documents designed to shield the business. In practice, they signal what matters but when it’s not done properly, they can fail to communicate clearly what needs to be prioritised.
 
They lack how decisions should be made when situations are unclear. The impact is felt when there are delays, inconsistencies in decision-making and repeated clarifications by the leadership team.
 
When policies are copied, inherited or left unexamined, they continue to signal but not necessarily what leadership intends. In the meantime, the team will adapt to those signals and the culture shall respond to what is present.
 
When the focus shifts so does the line of questioning. It stops being asked in the context of the customer because the answers have to align in context with the perceived norms. There’s no need for dramatic uprooting to hinder the healthy growth of the business.
 
Direction then becomes harder to determine.

“It’s at this stage, competitiveness feels unavoidable.”

The cost that appears later

Over time, the effects surface as declining loyalty, interchangeable offers and increasing pressure to adjust pricing or messaging. The business may recognise a change in rhythm, where something has eroded. However, being able to trace where the shift began would require a momentary hover.

A pause worth taking

This Ethical Insight is about noticing when comparison has replaced clarity as the reference point for decision-making. It’s not to completely reject competition; simply that when a business returns its attention to who its policies are truly for, ethical alignment becomes easier to maintain through intentional structure.
 
This is the space where clarity can be re-established before the business adapts itself away from the very relationships it was built on.

This is the work of CAS Ltd, where The Ethical Strategist works with founders to recognise the early signals of misalignment.

When you’re ready to explore what’s sitting beneath the surface of your business, reserve a conversation worth having.

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