66% Sing From The Same Song Sheet

Image by nickwheeleroz via FlickrThe recent survey from McKinsey on how companies use strategy to "beat the market" had some nice insights but the one that stood out to me was that only 33% of companies say they use novel insights in their strategic planning. Now think about this for a second. That means two thirds are using exactly the same research as their competitors to drive their strategic thinking. While this lack of motivation to uncover new insights has been a topic in other articles recently, it astounds me that McKinsey has the number so high. We have become so dependent on the Internet to get information, which is great. However, if we do not step outside and uncover insights that are truly specific to our needs (and not published for all to see on the Internet) then how will we be any different than our competition.

Macro generic industry data is great for getting a picture on some of the forces that are driving an industry, I use them all the time, but business needs to get to the micro level drivers that are specific to their buyers and business, to be able to build a brand that is relevant both to them and their buyers. I do not believe for a second that this can be done without spending the money and uncovering new insights about ones buyers and marketplace on a regular basis.

If you are keen to see the entire survey click on the link below.

http://www.mckinseyquarterly.com/Putting_strategies_to_the_test_McKinsey_Global_Survey_results_2722

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5 Forces Of Competition Revisited

I often use the classic strategic tool Michael Porter introduced in the 1970's when he first came to Harvard. I love Porter's 5 Forces because it makes organizations look at what business they are REALLY in, by having a real look at all the competition that surrounds and influences them, not just their obvious direct competitors.

From HBR On-Line

So often people ask me "have you read this new business book on strategy?" To me the disposable world we live in that is always looking for the next thing, often forgets the most powerful tools we already have. Porter's 5 Forces is an example of this. It does not need to be improved on as it adapts to every business environment. I love the fact that it reinforces that business strategy starts by looking at your competition and industry, at the same time you are looking at the consumer or customer. To often we are too focused on the buyers of our product or service and do not step back and see what is driving the industry we compete in. How has the power of the suppliers of our products changed? What new technologies could make our product or service less relevant in the months ahead? These are few of the critical questions that will never die, and that's why in all my interactions with clients and students, I ask, do you know what business you are really in, and who are the competitors that will influence your success?

I attach a link to a Harvard Business Review page that has a great 15 minute video with Michael Porter and the evolution of his 5 Forces. Take a coffee break and listen to it, then ask your self when was the last time your organisation really looked at their industry with such depth.

http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1

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Joiners Vs. Creators, Who Drives the Web?

A few years back Forrester Research published their Social Technographics that laid out the Social Network Population in a ladder format. It had "creators" on the top and "inactives" on the bottom. You can see in the 2010 version that "joiners" and "spectators" drive the activity on the social web, which is no surprise as these activities take the least commitment to stay involved in the web.

To me the interesting question is how do you engage your customers at different levels of the ladder? What are you providing in your on-line world that is relevant for your "creators" as well as relevant for your brand. The same goes fore those that just like to be "spectators" of your brand on-line. What are you doing for them that keep them wanting to come back and share with others? I think it is a worthwhile exercise to review the Social Technographics Ladder and ensure relevancy for all.

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The Amazing World Of Scotch

A few weeks back I attended the Edmonton Whiskey Festival as a gift from wife for Christmas, and I was blown away by just how sophisticated the Scotch business has become. You see back in the mid 1980's when I worked in an ad agency in Toronto we had Glenmorangie Single Malt Scotch as a client and I was lead to believe that Glenmorangie was one of the real special bottles of scotch you could buy. The brand had a great history with the 16 men of Tain who so carefully crafted Glenmorangie, in fact one of the print ads we ran, which is below, was a wonderful woodcutting illustration style of the bottle signed by the 16 men of Tain .

Mid 1980's Glenmorangie global Print ad that ran in Canada

My point is Glenmorangie was well represented at the festival I attended but they were just a tiny sample of the amazing number of special single malt scotches on show that evening. While Glenlivet, Glenfiddich and Glenmorangie are some of the better promoted single malts in the world, there is indeed a whole larger world of wonderful brands and products to be explored, and truth be told, better marketed.

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