Geoffrey Moore has a new book coming out Fall 2011. He gave an excellent talk in May at Entrepreneurial Thought Leaders at Stanford.
Moore is the extremely insightful author of five other business books including the very useful Crossing the Chasm, Into the Tornado, etc., etc.
Power vs. Performance
- Power is harder to measure
- Performance consumes power, power fuels performance
- Most companies are performance-oriented, not power-oriented
- Budget power first, then performance
Types of Power
Five types of power
- How fast is the category growing?
- 15% growth or more can indicate growth market
- How powerful is the company inside the category
- Market share
- Fastest growing markets
- Strategic markets
- Net differentiation of the offer
- Living up to category expectations
- Product development
- Project management and achieving new offer
- Promote a vision
- Pursue strategies
- Get the work done
- What is happening in the world that affects our category and people outside of company care about?
- What role is the company going to play in unfolding of the forces?
- What markets are strategic and fast-growing that we will measure ourselves by?
- Strategies change with categories
- What is our power position relative to our competitors in our categories?
- In what markets are we going to fight to change our position?
- What offers are the critical offers are going to change our position?
- Which markets with which offers and how fast?
- Weekly committments
- Monthly reviews
- Quarterly deliverables
- Don’t mix modes, each project should be differentiation, neutralization, productivity
- One playbook per project
- R&D Innovation
- Separate from competitive set, make it unmatchable
- The offer is created has immense offer power
- Catch up in some way with competitors
- No one likes to do this but many times have to
- Get comparable, just good enough, and do it fast
- Improve processes
- Optimization not liked
- Makes resources more productive to put into differentiation or neutralization
- Categories get more efficient and company too expensive
- Reengineer, modularize, optimize, outsource
- Best in class (but not different, and not just good enough)