| Most big businesses are less agile than
| |
| | energy to DO something about an insight,
|
| their smaller counterparts. Often, it's
| |
| | rather than saying "that's interesting"
|
| smaller, nimble companies that spot the
| |
| | and letting it drop.Forgotten Rule Four.
|
| opportunity in the market. The big
| |
| | Have a purpose you'd risk your house
|
| corporation lumbers along a couple of
| |
| | for.Goliath Worldwide has a vision
|
| years later. By that time, the
| |
| | statement -- "to provide superior returns
|
| opportunity has vanished or it's been
| |
| | to shareholders", and a profit share
|
| locked up.But there's an irony here. And
| |
| | plan. If the company beats its
|
| it's this. Most large companies don't
| |
| | consolidated profit target, managers can
|
| just pop into existence. They are small
| |
| | earn a bonus of up to 8% of their annual
|
| businesses that have survived and
| |
| | salary. Sometimes they do, sometimes they
|
| thrived. So, for at least part of their
| |
| | don't. It depends more on the target and
|
| history, they knew what it took to grow
| |
| | the economic climate than on what the
|
| and to change - to create and dominate
| |
| | managers do.The directors of David Inc
|
| markets.As companies mature, they
| |
| | took out mortgages to start the business.
|
| concentrate on being big. They put
| |
| | If they don't meet their profit target,
|
| processes and procedures in place. They
| |
| | they could literally lose their homes!
|
| form committees to create policy. They
| |
| | But they're not worrying about that,
|
| appoint planning task groups. They forget
| |
| | because they have an overriding sense of
|
| how they used to think and behave.And as
| |
| | purpose. And it's not "to provide
|
| a result, they slow down. They become
| |
| | superior returns to shareholders." They
|
| less innovative and more defensive. They
| |
| | know that they're making products they're
|
| find growth harder to come by. And their
| |
| | really proud of. They're genuinely making
|
| core markets are threatened by changing
| |
| | their customers' lives better, and they
|
| consumer demands, by new business
| |
| | feel that they're making the world a
|
| approaches, and by niche
| |
| | better place.Big companies set great
|
| competitors.Consider these two
| |
| | store by a vision and mission. Here's a
|
| businesses. Goliath Worldwide has good
| |
| | fairly typical vision statement. "The
|
| people, huge budgets, and decades of
| |
| | Gillette Company's Vision is to build
|
| experience. It launched a series of
| |
| | Total Brand Value by innovating to
|
| successful brands in the 1950s and 1960s,
| |
| | deliver consumer value and customer
|
| and then went international in the 1970s.
| |
| | leadership faster, better and more
|
| In the 1990s, they cut costs and returned
| |
| | completely than our competition."Now this
|
| to the core. Now it's struggling, even in
| |
| | isn't wrong, or misguided. It's just not
|
| the markets it helped to create.The
| |
| | very interesting. It won't create a buzz.
|
| newcomer -- David Inc -- is growing the
| |
| | Nobody's going to take a bullet in the
|
| market and taking share. Four years ago,
| |
| | chest for it. A vision and mission are
|
| they launched a range of products called
| |
| | fine. But a well-thought-through purpose,
|
| 'Dinc'. At first they sold through
| |
| | on the other hand, is bold, clear, maybe
|
| specialist outlets; last year they began
| |
| | impudent, certainly inspiring. It
|
| selling through major retailers; now Dinc
| |
| | provokes a response.Take Apple. When
|
| is growing its segment at the premium end
| |
| | Steve Jobs was reappointed CEO of Apple,
|
| of the market, and it's seen as a
| |
| | a reporter asked him "Can you turn Apple
|
| 'must-have' brand by the
| |
| | around?" His answer: "The goal is not to
|
| retailers.Somewhere along the line, while
| |
| | turn Apple around. The goal is not to
|
| Goliath was growing so successfully, it
| |
| | move back into profit. The goal is to
|
| was also losing sight of the things which
| |
| | make the best computers in the
|
| made it work. What has Goliath forgotten
| |
| | world."Forgotten Rule Five. Treat
|
| that David is doing right -- and can
| |
| | business as a journey, and involve
|
| Goliath learn to be agile again?
| |
| | everyone.Goliath Worldwide has a massive
|
| Forgotten Rule One. Spend extraordinary
| |
| | formal quarterly briefing process, which
|
| amounts of time with your
| |
| | cascades through the organisation. Part
|
| customers.Goliath Limited conducts plenty
| |
| | one of the briefing is about the future
|
| of market research. Their agency filters
| |
| | -- about aspirations; part two is about
|
| the results and presents them to the
| |
| | the recent past -- about financial
|
| marketing team each month. The marketing
| |
| | results. It is fair to say that the two
|
| team selectively publishes research
| |
| | parts are not linked, and that strategy
|
| results via email on a quarterly basis.
| |
| | is not tracked. Directors brief senior
|
| Most of the emails are unread.David Inc's
| |
| | managers, who brief junior managers, who
|
| managers just spend time with their
| |
| | brief non-managers. Very few reactions
|
| customers, at least half a day each week,
| |
| | are passed back up the chain, and when
|
| whether it's watching them in stores,
| |
| | they are the response is defensive.David
|
| shadowing them in everyday life, or
| |
| | Inc's three owners go round the company
|
| observing them in focus groups.You may
| |
| | briefing everyone themselves. They
|
| believe that David's approach is
| |
| | describe their business as a journey.
|
| unproductive. But what could be more
| |
| | They talk about what's working and what's
|
| unproductive than working without a deep
| |
| | not working. They have a scorecard -- a
|
| knowledge of what your ultimate customer
| |
| | set of a dozen metrics that they always
|
| wants?Here's an example. Michele Ferrero,
| |
| | use -- to tell the story of the company's
|
| the late boss of Ferrero (one of the
| |
| | progress. Sessions are informal. Wine is
|
| largest confectionery businesses in the
| |
| | taken. Questions and suggestions and
|
| world) used to spend two days every week
| |
| | challenges are welcome. Valuable insights
|
| just watching shoppers. He created a
| |
| | come out of the discussions.Many
|
| steady stream of hugely successful new
| |
| | successful business leaders describe
|
| products (including Ferrero Rocher, Tic
| |
| | business as a journey - Jack Welch, Bill
|
| Tac and the Kinder Egg) which have
| |
| | Gates, Richard Branson. But only a few
|
| perfectly met the needs of consumers.And
| |
| | companies take that idea forward and
|
| here's another. Terry Leahy, the boss of
| |
| | involve all their employees in the
|
| Tesco, spends a day a week in his stores,
| |
| | journey.One way to do this is to create
|
| talking to customers and staff. Is he
| |
| | and publish a 'balanced scorecard' -- the
|
| wasting his time? Well, Tesco is the
| |
| | concept developed by David Norton and
|
| largest retailer in Britain, and it's
| |
| | Professor Robert Kaplan. This is a set of
|
| pulling away from its
| |
| | linked measures which tell the story of
|
| competitors.Forgotten Rule Two. Get under
| |
| | what a business is trying to do.Another
|
| the skin of your competitors.Goliath
| |
| | way is to create a cockpit, with details
|
| Limited has a specialist competitor
| |
| | of the journey charted on the walls (e.g.
|
| intelligence desk. Every two years, the
| |
| | the strategic direction, a map of the
|
| desk produces profiles of all major
| |
| | marketplace, 'engines' such as brands or
|
| players in the marketplace. Pages of
| |
| | technologies, and measures of
|
| data, charts and analysis. Yet Goliath
| |
| | progress).If these ideas are well
|
| continually underestimates its
| |
| | implemented, and pushed widely around the
|
| competitors. For years, the sales
| |
| | business, they make strategy a continuous
|
| forecasts have assumed that Goliath will
| |
| | process owned by everyone.Conclusion and
|
| grow faster than their market, which
| |
| | tipsThese are the lessons that big
|
| means taking share from competitors. But
| |
| | businesses once knew but have forgotten.
|
| they never say which competitor, or
| |
| | All of them can be re-learned and put
|
| how.David Inc is rather less formal. It
| |
| | into practice.If you can't change your
|
| has polled its own employees about
| |
| | whole business, then focus on your unit
|
| Goliath's strengths and weaknesses, and
| |
| | or branch or division or team. Or on
|
| has made a guess at its likely strategic
| |
| | yourself."Anyone who stops learning is
|
| priorities. In fact, Goliath won't start
| |
| | old, whether at twenty or eighty. Anyone
|
| writing next year's plan until September,
| |
| | who keeps learning stays young."
|
| but David has already intuited two-thirds
| |
| | Henry FordSo how do these lessons also
|
| of the sales and marketing activities
| |
| | apply to individuals?Spend time with your
|
| that Goliath will come up with! So they
| |
| | customers. Start by booking a couple of
|
| can get on with pre-empting them right
| |
| | hours to visit your own personal
|
| now.Sales and marketing professionals
| |
| | customers, whether they're inside the
|
| know that they have to stand in their
| |
| | company or outside. Ask them how they use
|
| customers' shoes. It's exactly the same
| |
| | your services. Ask them what they really
|
| with competitors. The best way to
| |
| | need. Ask them what they like and what
|
| understand your competitors is to stand
| |
| | they don't like. Ask them how you could
|
| in their shoes. That means looking at the
| |
| | improve what you do. Is there anything
|
| market from their perspective and
| |
| | you could stop doing? Look for
|
| figuring out what you would do if you
| |
| | opportunities to make things easier for
|
| were them.Here's an anonymous example.
| |
| | both of you. Most of all, find out what
|
| (Companies who successfully outsmart
| |
| | they love.Climb into your competitor's
|
| their competitors don't want to publicise
| |
| | boots. Look at your services from a
|
| their methods.) I worked with a major UK
| |
| | competitor's point of view. (If you don't
|
| business to understand a dangerous new
| |
| | have a competitor, lucky you; try
|
| competitor. We put ourselves in their
| |
| | imagining that a seriously impressive
|
| boots and effectively plotted our own
| |
| | colleague of yours IS a competitor.) What
|
| downfall. Then we turned it around and
| |
| | would they say are the rules of the game
|
| figured out how to pre-empt them.Three
| |
| | in your field? What do you have to do to
|
| months later, this competitor published a
| |
| | be world-class? What do you have to do to
|
| trade ad which set out its four strategic
| |
| | take your game to the next level?Build
|
| priorities. We had predicted them all
| |
| | your business on insights. As you talk to
|
| correctly, and the sales and marketing
| |
| | people, get them to tell stories about
|
| campaigns to beat them were already under
| |
| | using your services. Note down the
|
| way...Forgotten Rule Three. Build your
| |
| | positives - their hopes and ideals - and
|
| business on insights.Goliath Limited has
| |
| | the negatives - their frustrations and
|
| a sprawling annual strategic planning
| |
| | compromises. These unwitting moments are
|
| process, run at Goliath HQ. It begins in
| |
| | how people give you insights.Define a
|
| April and the plan is eventually issued
| |
| | purpose that makes you feel proud. Choose
|
| (to selected senior managers) just before
| |
| | one of those insights that most resonates
|
| starting work on the operating plan in
| |
| | with you, and set about bringing it to
|
| September. A lot of experienced managers
| |
| | life in your work. A great way to be
|
| contribute to the process, but Goliath is
| |
| | fulfilled in your work is to make your
|
| aware that the plan never really comes to
| |
| | customers' lives even a little bit
|
| life in the business.By contrast, David
| |
| | better.Lay out your journey and measure
|
| Inc's strategy looks chaotic.
| |
| | your success. Goal-setters achieve more
|
| Conversations are regularly held with
| |
| | than people who drift. But goal-setting
|
| people across the business, particularly
| |
| | can be a dry activity. By thinking of
|
| with people at the outside edge of the
| |
| | your life and career as a journey, with
|
| business -- people who work with
| |
| | milestones on the way, you can make it
|
| customers and suppliers. In the 'cockpit'
| |
| | more interesting. And the journey will be
|
| at their open plan office, the directors
| |
| | shaped by what you now know about your
|
| write up every single idea on the wall
| |
| | customers, your competitors, your
|
| and solicit comments and further
| |
| | insights and your purpose.Bon voyage!©
|
| thoughts.They build -- and rebuild --
| |
| | 2005 Charles Kingsmill. You are free to
|
| their whole business on insights. An
| |
| | use material from this article in whole
|
| insight is hard to define, but you'll
| |
| | or in part, as long as you include
|
| know one when you see it! It's a high
| |
| | complete attribution, including live web
|
| value nugget of information that helps
| |
| | site link. Please also notify Charles
|
| you see things in a different way.If you
| |
| | Kingsmill where the material will appear.
|
| look at successful innovative products,
| |
| | The attribution should read: "By Charles
|
| you can often see the insight that lies
| |
| | Kingsmill. Please visit Charles's web
|
| at the heart of them. The iPod (and its
| |
| | site at for additional information and
|
| equivalents): "I don't want to carry
| |
| | resources on growing your business."
|
| around a pile of CDs, particularly as I
| |
| | (Make sure the link is live if placed in
|
| only like two or three songs on each."
| |
| | an eZine or in a web site.)Charles
|
| Bratz (the dolls that gave Barbie a
| |
| | Kingsmill works with medium and large
|
| slap): "I like the sassy attitude of
| |
| | businesses who have set themselves
|
| female celebrities -- it's part of their
| |
| | challenging growth targets. His services
|
| glamour." The Smart car (the Swatch on
| |
| | include Strategy Action Teams and
|
| wheels): "why should I -- or my business
| |
| | Competitor Wargaming. Visit Charles's
|
| -- give up my individuality when I buy a
| |
| | website at where you can download a
|
| small city car?"Most big businesses are
| |
| | growth questionnaire and free workbooks,
|
| rightly concerned with Knowledge
| |
| | as well as subscribing to his e-zine
|
| Management. But managing insights is even
| |
| | "Mission Control.
|
| more fundamental. It takes courage and
| |
| |
|
