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.

Such are the dynamics of the Aspirational Margin.

If the margin between perception and reality or reality and perception gets too wide, then 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. Nokia underestimated how important the transition to smartphones would be. This is a classic case of a company being enthralled by its past success. They lost their franchise and market share.


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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’s crucial to drive the perception and reality in tight unison.