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Overview
A few rare companies have discovered the secret to sustained high growth: momentum. They’ve learned how to create the conditions that lead to exceptional organic growth—which feeds on itself, continually accelerating the business forward. In The Momentum Effect, J.C. Larreche introduces a complete framework for gaining momentum, keeping it, and harnessing its power. Drawing on new research and powerful case studies, Larreche demonstrates the stunning role of momentum in value creation. He sets out the process for developing the “power offers” that lie at the heart of this powerful force. This book offers a systematic process for creating momentum that will work in any business, in any industry, and under any market conditions. You’ll learn how to create new value through a momentum strategy and build the leadership competencies to deliver highly profitable growth over the next six months…five years…even decades.
•Pioneer or die: drive momentum and harness its stunning power
How momentum-powered firms create 80% more shareholder value
•Understand the drivers of momentum strategy
Craft power offers, mobilize for growth, and more
•Master the Momentum Process: design and execution
Eight specific steps to implement a long-term winning momentum strategy
•Climb the five-step Momentum Leadership Ladder
How leaders can systematically generate and direct momentum
"This book shows you how to build momentum for growth and leave your competitors trailing far in your wake!"
–Sir Richard Branson
"J.C. Larreche’s book, The Momentum Effect, is a must-read. It highlights why more marketing spend and further value extraction are not the key determinants for future growth. To create powerful momentum for exceptional growth, it is essential to offer innovative value to the marketplace. The Momentum Effect outlines just how to achieve this. The results are illuminating.
—W. Chan Kim & Renée Mauborgne, Authors of Blue Ocean Strategy
"How can companies achieve exceptional and sustained growth? The Momentum Effect explores this challenge and reveals successful strategies for originating new sources of growth and value from customers with the power to unlock great potential.”
—Dr. Daniel Vasella, Chairman & CEO, Novartis AG, Basel/Switzerland
Product Details
| ISBN-13: | 9780132716338 |
|---|---|
| Publisher: | Pearson Education |
| Publication date: | 03/26/2008 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 352 |
| Sales rank: | 934,624 |
| File size: | 2 MB |
| Age Range: | 18 Years |
About the Author
J.C. Larreche is Professor at INSEAD, the famous international business school, where he holds the Alfred H. Heineken Chair. It was as a student at Stanford that he was first nicknamed “J.C.” by his friends. It was also there, in the midst of Silicon Valley, that he developed an interest in the way some firms achieve exceptional growth while others don’t. Since then, his research, teaching, and consulting activities have focused on the discovery of systematic and practical ways to help businesses achieve quality growth that is not only exceptional but also sustainable.
J.C. has always combined his academic life with a business career, and is particularly sensitive to the practical day-to-day realities which executives have to deal with. He is a renowned consultant with leading global corporations, most of them listed in the global Fortune 500. Aged just 36, J.C. was appointed a nonexecutive director of the multinational firm that became ReckittBenckiser, and he kept that position for an exceptionally long tenure of 18 years. He is the Founding Chairman of StratX a strategic development consultancy with offices in Boston, Paris and Tokyo.
His academic work concentrates on fostering the fundamental capabilities that impact a firm’s ability to deliver growth and especially marketing excellence, customer focus, and innovation. J.C. is the author and coauthor of many books and articles, including Markstrat, the leading strategic marketing simulation used by more than one million executives worldwide. He has won many awards, including Marketing Educator of the Year and BusinessWeek’s European Case of the Year award. J.C. is also a respected executive educator whose programs are among the most highly rated in INSEAD’s excellent portfolio.
Table of Contents
Preface xxiPART I Discovering Momentum 1
Chapter 1The Power of Momentum 3
Where’s the Impetus? 3
What’s Holding Us Back? 4
Pushers, Plodders, and Pioneers 5
Momentum-Powered Firms 9
The Power of Momentum in Action 11
Wal-Mart 11
Toyota 12
Join the Momentum League 14
Chapter 2 The Source of Momentum 15
The Day Gary Kildall Went Flying 15
The Source of Microsoft’s Momentum 16
How Value Is Created 17
Where Is the Unlimited Potential? 19
Drivers of Momentum Strategy 21
Exploring the Customer’s Space 21
Crafting “Power” Offers 22
Mobilizing for Growth 23
Momentum Strategy at Work: The iPod 24
How Momentum Growth Opens a New Efficiency Frontier 25
Moving from Compensating to Momentum Strategy 26
Less Is More, More for Less 27
Unlock Your Unlimited Potential 28
Chapter 3 The Road to Momentum 29
Vasella’s Eureka Moment 29
The Momentum-Powered Firm in Action 30
The Results Momentum Can Deliver 31
The Twin Engines of Momentum 32
Momentum Design 34
Momentum Execution 36
Momentum Design at Skype 38
Momentum Execution at Skype 41
Making Momentum Systematic 44
PART II Designing Momentum 47
Chapter 4 Compelling Insights 49
IBM Is Listening Again 49
The Value-Origination Blind Spot 50
Virgin Atlantic 51
Customer Insights 52
3M: Post-it Notes 53
Alcoa Packaging: Fridge Pack 53
Dassault: The Falcon 7X Aircraft 54
The Systematic Discovery of Compelling Insights 54
The Knowing-Doing Discovery Path 57
The Listening Discovery Path 58
The Learning Discovery Path 58
The White Discovery Path 59
The Exploration Process 60
Guiding Exploration 60
Enabling Exploration 63
Explore the World for Insights 65
Chapter 5 Compelling Value 69
What Women Want 69
What Does a Customer Value? That Depends 70
Customer Myopia 72
The Customer Value Map 73
Delighting Customers 74
Abusing Customers 76
What’s It Worth? How Customers See Value 77
The Customer Value Wedge 78
Financial Customer Value 80
Functional Customer Value 81
Intangible Customer Value 82
Emotional Customer Value 82
Let the Customer See Better Value 84
The Golden Pathway to Increased Customer Value 85
Go Deep, Be Compelling 87
Chapter 6 Compelling Equity 89
The Man Who Taught an Old Dog New Tricks 89
The Concept of Compelling Equity 90
Transaction Myopia 92
Lifetime Value: The First Step in Correcting Transaction Myopia 94
The Customer Equity Wedge 96
Financial Customer Equity 97
Functional Customer Equity 98
Intangible Customer Equity 99
Emotional Customer Equity 100
The Customer Equity Map 102
Optimizing Customer Equity 104
The Three Paths of Customer-Equity Optimization 104
Zero-in on Customers Who Drive Momentum 106
Chapter 7 Power Offer Design 109
A Bank That Doesn’t Like Banking 109
What Is a Power Offer? 110
Exploring for Customer Traction 112
From Exploration to Design of a Power Offer 114
The Compelling Value Path to the Power Offer 115
The Compelling Equity Path to the Power Offer 118
The Pillars of a Power Offer 120
Compelling Proposition 123
Compelling Target 124
Power Crafting 125
The Virtuous Circle of Power Offer Design 127
Design for Traction 129
PART III Executing Momentum
Chapter 8 Power Offer Execution 133
A Tape Recorder That Didn’t Record 133
The Execution of the Power Offer 134
From Product Focus to Value Focus 135
Momentum as a New Business Model 135
The Dynamic Evolution of Power Offers 137
The Business Value of Momentum 140
The Chain Reaction of the Power Offer 143
The Virtuous Circle of Momentum 143
Breaking the Vicious Circles 146
Building and Sustaining Momentum 147
Understand the Emotional Drivers of Momentum 147
Implement a Systematic Action Roadmap to Momentum 148
Turn Traction into Momentum 150
Chapter 9 Vibrant Satisfaction 153
Moments of Truth 153
Why Vibrant? 154
The Emotions Beneath Satisfaction 155
“Dissatisfaction Inside” 155
Why Intensity Matters 156
Champions and Desperados 158
Satisfaction Metrics 159
Top Box Ambition 160
The Impact of Vibrant Satisfaction 162
Aiming for Vibrant Satisfaction 163
Strategies for Vibrant Satisfaction 164
Mobilize for Vibrant Satisfaction 165
Detect Sources of Dissatisfaction 166
Convert Unsatisfied Customers 168
Nothing Less Than Vibrant 172
Chapter 10 Vibrant Retention 175
For Want of a Key 175
Loyals and Runaways 176
The Emotions Beneath Retention 177
“Freedom Inside” 177
“Temptation Outside” 178
Retention Metrics 179
The Business Impact of Retention 180
Vibrant Retention 182
Passive Retention
Forced Retention 185
Vibrant Retention 187
Strategies for Vibrant Retention 188
Mobilize for Vibrant Retention 188
Detect Sources of Defection 189
Convert Defecting Customers 190
Nothing Less Than Vibrant 192
Chapter 11 Vibrant Engagement 195
Harry Potter and the Exceptionally Engaged Readers 195
Advocates and Detractors 196
Why “Vibrant” Engagement? 197
The Human Nature of Engagement 197
“Belonging Inside” 197
“Broadcasting Outside” 199
Ambitious Engagement Metrics 200
The Business Value of Engagement 201
Accelerator I: Boosted Compelling Value 201
Accelerator II: Boosted Compelling Equity 202
Accelerator III: Boosted Customer Acquisition 203
The Richness of Vibrant Engagement 204
Paid-For Value and Ambient Value 205
The Customer Engagement Portfolio 206
Strategies for Vibrant Engagement 208
Mobilize for Vibrant Engagement 208
Detecting Sources of Engagement 209
Converting for Vibrant Engagement 210
Competing in the Momentum-Powered League 212
Nothing Less Than Vibrant 214
PART IV Total Momentum 217
Chapter 12 Internal Momentum 219
Give Me a Squiggly! 219
Mobilizing the Energy Within 220
Building Internal Momentum 221
Compelling Employee Insights 221
Compelling Employee Value 223
Compelling Employee Equity 224
Employee Power Offers 224
Vibrant Employee Satisfaction 225
Vibrant Employee Retention 226
Vibrant Employee Engagement 227
The Momentum Culture 228
The Customer Spirit: “The Real Battlefield Is Outside” 230
The Competitive Spirit: “Outsmarting Your Opponent” 231
Internal Momentum in Crises 231
Wal-Mart’s German Fiasco 232
Johnson & Johnson and the Tylenol Crisis 232
The Best of Human Nature 235
Harness Your People Power 236
Chapter 13 Momentum Leadership 239
Can You Ski the Face? 239
Generating and Directing Momentum 240
The Momentum-Leadership Ladder 241
Momentum Leadership 243
Momentum Leadership 245
Momentum Leadership 248
Tips for Aspiring Momentum Leaders 252
Commit to Value Origination 253
Practice Momentum Concepts Continuously with Your Contacts 254
Have Respect for People 255
Spend Quality Time with Customers, Employees, and Stakeholders 256
Be Momentum Consistent 257
It Starts with You 258
Chapter 14 Epilogue 261
Seizing the Unlimited Potential 262
The Momentum Journey 262
Our Momentum Future 264
Bibliography 267
Endnotes 281
Index 313