The Aspirational Margin.

Every entity carries a perception different from their real existence (like it or not.) Ideally the perception of any entity, personal or business, should reflect the aspirations of that entity. If the perception improves it creates expectations and the reality must follow in unison to satisfy the perception.

Such are the dynamics of the Aspirational Margin.

 
 
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perception vs. reality

If the margin between perception and reality or reality and perception gets too wide. The entity is either overvalued or undervalued and in danger of collapsing.

 
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perception vs. reality - overvalued

There are many examples in the corporate graveyards. IBM lost its high- tech franchise ignoring innovations of the start ups. As a consequence, their share price and brand equity are diminished.

 
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perception vs. reality - undervalued

One example is Corning Glass with their perception as a mass manufacturer of glasses and plates. But Corning Glass invented fiber optics, a paradigm change in the telecom industry, generating huge revenues. Wall Street took notice.

 
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Perception vs. Reality.  The ideal Aspirational Margin.

Create your own Aspirational Margin. Instead of managing just the reality and taking the perception for granted, it is more effective to drive the perception and reality in tight unison.