Friction Theory As a Lens for Growth

I had my perfect morning routine going - comfortable chair, hot coffee at my side, fireplace running, Wall Street Journal in hand (digital version of course). That's when I stumbled across something unexpected… an article about a trio of economists who just won the Nobel Prize for something called Friction Theory.

Now, I'm not usually one to get excited about the latest Nobel Prize winner or newly revealed economic research. My high school transcripts would confirm I wasn't exactly on track to become an economist. But this one grabbed my attention. These economists found that the friction between buyers and sellers has a direct correlation to economic growth - beyond historic beliefs around supply and demand.

A simple example… Imagine someone wants to buy a house in a new city so they can take on a new job. There's a seller in that city looking to sell their house. Simple match, right? Not quite. Friction is all over this potential transaction - price points don't align, bedroom counts don't match, the buyer doesn’t know the right location to consider, maybe even the real estate agents aren't communicating effectively. All these little points of friction add up, and this buyer can’t find the right house. The buyer gets frustrated, passes on the new job, affecting employment rates in that new city.

Now extrapolate that across every house being bought and sold, every product, every service - every single day. Suddenly, friction isn't just an annoyance - it's a larger force that shapes our entire economy.

At the time, I was managing a sales team at a mid-sized marketing company, and I started applying this concept to my situation. Maybe selling wasn't just about the commission checks? (Okay, let's not get too carried away...) But what if we viewed our role in sales as friction-removers? By smoothing out the bumps in our client interactions, we could sell more effectively, help our clients grow, and make our own small dent in the economy.

When you boil it down, friction is really just another word for complexity. And here's what I've learned: removing complexity - making things more simple - can transform how we sell and how we lead.

Friction in Sales: A Real-World Example

I had a prospect who seemed excited about our solution. A really strong initial meeting, enthusiastic feedback, but no decision. That's friction at work. Instead of getting frustrated, I went on my hunt for uncovering the point of friction. Instead of sending “just checking-in” emails, I pushed him a little… I shared that he seemed so excited to get going ASAP the other day, and am curious what questions or hesitations have come to mind. Turns out, his team was concerned about their capacity to implement this new solution with their busy season approaching. We hadn't properly addressed this concern in our discussions. By uncovering this friction point, we were now able to co-create a phased rollout plan that got the client comfortable, allowed us to both start making progress, and the project was approved. Sale won - just by uncovering and removing friction.

Friction in Leadership: A Team Perspective

I noticed my team wasn't focusing on what I thought were clear priorities. Easy to blame the team, right? But that's friction in disguise - friction in communication, in alignment, in understanding. When I dug deeper, I discovered that the priorities that were clear to me - weren’t clear to them. Each team member had interpreted them differently based on their role, their day-to-day realities, their own beliefs, etc. By creating a simple, visible framework for priorities and checking understanding regularly, that friction began to dissolve. And business started moving in the right direction.

Your Turn to Reflect

Take a moment to think about friction in your world.

  • Where do you feel resistance in your client relationships?

  • What makes your team meetings less productive than they could be?

  • Where do you see complexity that could be simplified?

  • What conversations with your boss feel more difficult than necessary?

Friction isn't just an annoyance - it's an opportunity to simplify. Each point of friction you uncover is a chance to make something better, smoother, more effective. Whether you're in sales, leadership, or both, your success might just come down to how well you can identify and remove friction.

So, what friction point will you tackle first?

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