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Competitors Have Moved Ahead
Sometimes it is possible to do a good job, achieve more than is expected, and still come out second best against a well-managed, aggressive competitor. If this has happened to you, you may encounter situations where some of those who are aware of it may interpret your "second best" record as implying that you are somehow not quite as effective or competent as you could be.
Mindset

There are several points to keep in mind. First, this is not a serious liability unless a lot of adverse publicity surrounded the situation. Second, in truth there is no stigma attached to coming in second to a first-rate competitor. Third, you very likely learned quite a bit from the encounter, and can put that learning to good use for your next employer.

Fourth, you are now a "seasoned competitor" who has managed effectively under intense competitive pressures. No doubt there was also a #3, #4, and #5. Fifth, the world is full of highly successful and effective people who at one or more times in their lives came in second, third or fourth.

Resume

Follow the principle of communicating your achievements without regard to what that competitor achieved. On the resume do not offer information that would indicate the competitor was more successful. Instead, emphasize the gains and increases you were able to achieve year-to-year, compared to previous years.

There are many ways to measure achievements. Always choose to measure them in a way that puts them in the most favorable light. In a concise situation-action-result format, you can show that you took every conceivable initiative to reach or exceed goal.

The encounter with that particular competitor is probably only part of your experience. If there are other segments of your experience where you came out on top, be sure to emphasize that as appropriate, especially in an upfront summary.

Interviews / e-mail / Letters

In interviews and correspondence you have more latitude to convey information that puts your actions in the most favorable light. If you choose to address the situation at all, (and there may be no need to), you may even turn this into a strong positive according to how you describe the challenges.

If you had limited resources, started from way back, or operated under other adverse conditions, these can be pointed out up front. In light of the odds at the start, it may be a spectacular achievement to finish second, when you might easily have finished 5th or 6th, or not at all. Again, you can always choose a measure that puts your results in the best light.

Remember too the points made in the mindset recommendations, and emphasize these in the interview as appropriate. You can acknowledge that the competitor was more successful, and in the same breath point out that you learned quite a bit from the encounter, and can put that learning to good use for your next employer. As a "seasoned competitor" who has managed effectively under intense competitive pressures, there is no doubt about your ability to perform, even under difficult and challenging conditions.

Actions

Examine your past contributions closely, and prepare several action-oriented stories that demonstrate your talent for moving rapidly and aggressively to get results in the types of competitive situations the employer will respect.

Look for as many specific result indications as possible, especially where you beat out competitors or exceeded expectations in year-to-year performance. Always remember to measure results in the way that puts them in the most favorable light. Be prepared to give a wealth of evidence in the form of these memorable action-oriented stories. This will reassure the prospective employer about your ability to deliver.

Develop and coach enthusiastic references from selected individuals you can trust inside your employer organization, and from outside of it, e.g., customers, suppliers, sales reps, consultants, perhaps even past competitors, who will be happy to attest to your effectiveness, action orientation, and ability to deliver results. Review your resume with these references, and make sure they keep a copy available to scan when and if they are called.

This step will enable you to make the statement in an interview that, "You've heard about me from me, but you really need to hear it from some of the people who know me best, and I strongly urge you to call them." That will erase any lingering doubts that you might not be a top performer.

If you don't know a lot about them already, conduct research on any industry and companies you are targeting, using the Internet and/or resources in the Business Reference section of a good library. You might even consider going so far as to write a small article about the major trends in that industry as they affect someone in your function. This demonstrates initiative, shows extensive industry knowledge and a lot of enthusiasm, all of which are important factors in most hiring decisions.