I’ll talk about the the logic of understanding why the fad strategies the
understanding why the fad strategies the
understanding why the fad strategies the fad based strategies have lost their
fad based strategies have lost their
fad based strategies have lost their appeal that dominated the business press
appeal that dominated the business press
appeal that dominated the business press for the last 50 years and that there is
for the last 50 years and that there is
for the last 50 years and that there is a need for an innovative path breaking I
a need for an innovative path breaking I
a need for an innovative path breaking I would say approach to strategy that is
would say approach to strategy that is
would say approach to strategy that is somewhat back to basics but that is at
somewhat back to basics but that is at
somewhat back to basics but that is at least more relevant that is practically
least more relevant that is practically
least more relevant that is practically applicable that is rigorous and
applicable that is rigorous and
applicable that is rigorous and evidence-based and before doing that of
evidence-based and before doing that of
evidence-based and before doing that of course I have to explain a bit what
course I have to explain a bit what
course I have to explain a bit what strategy is all about strategy is
strategy is all about strategy is
strategy is all about strategy is basically about where to compete and how
basically about where to compete and how
basically about where to compete and how to compete if when push comes to shove
to compete if when push comes to shove
to compete if when push comes to shove that’s what it’s all about and when we
that’s what it’s all about and when we
that’s what it’s all about and when we talk about fads we’re really thinking
talk about fads we’re really thinking
talk about fads we’re really thinking about some sort of idea as you explained
about some sort of idea as you explained
about some sort of idea as you explained that grain traction in the popular
that grain traction in the popular
that grain traction in the popular business press and that is essentially
business press and that is essentially
business press and that is essentially supposedly responsible for the success
supposedly responsible for the success
supposedly responsible for the success of some hero companies apparently the
of some hero companies apparently the
of some hero companies apparently the idea is that some companies are
idea is that some companies are
idea is that some companies are successful because they followed some
successful because they followed some
successful because they followed some magic rule or rules and these are the
magic rule or rules and these are the
magic rule or rules and these are the companies that are of course are
companies that are of course are
companies that are of course are successful at that time like today they
successful at that time like today they
successful at that time like today they would look at Apple they would look at
would look at Apple they would look at
would look at Apple they would look at Amazon they would look at Samsung and
Amazon they would look at Samsung and
Amazon they would look at Samsung and but 20 years back they wouldn’t look at
but 20 years back they wouldn’t look at
but 20 years back they wouldn’t look at Apple at all they’d look at Walmart
Apple at all they’d look at Walmart
Apple at all they’d look at Walmart they’d look at Microsoft and they’d look
they’d look at Microsoft and they’d look
they’d look at Microsoft and they’d look at yes Kodak ok so these are companies
at yes Kodak ok so these are companies
at yes Kodak ok so these are companies that are usually used as examples the
that are usually used as examples the
that are usually used as examples the ones that suit the bill at the time now
ones that suit the bill at the time now
ones that suit the bill at the time now the Fed the logic of the fad is to say
the Fed the logic of the fad is to say
the Fed the logic of the fad is to say this if other less successful companies
this if other less successful companies
this if other less successful companies just were to apply these magic rules
just were to apply these magic rules
just were to apply these magic rules they’d be equally successful ok and this
they’d be equally successful ok and this
they’d be equally successful ok and this is very appealing the fans are very
is very appealing the fans are very
is very appealing the fans are very appealing because of their simplicity
appealing because of their simplicity
appealing because of their simplicity just follow a few rules because they are
just follow a few rules because they are
just follow a few rules because they are taking from examples of companies that
taking from examples of companies that
taking from examples of companies that we can relate to and it’s third very
we can relate to and it’s third very
we can relate to and it’s third very well packaged that’s a very important
well packaged that’s a very important
well packaged that’s a very important dimension now the a few examples of fads
dimension now the a few examples of fads
dimension now the a few examples of fads be hags the big hairy audacious goals of
be hags the big hairy audacious goals of
be hags the big hairy audacious goals of the 1990s the rule was you have to set a
the 1990s the rule was you have to set a
the 1990s the rule was you have to set a transformative emotionally come
transformative emotionally come
transformative emotionally come lingo for the next ten thirty years okay
lingo for the next ten thirty years okay
lingo for the next ten thirty years okay that is the core that is the rule that
that is the core that is the rule that
that is the core that is the rule that is going to make you successful forget a
is going to make you successful forget a
is going to make you successful forget a bit about your capabilities but that
bit about your capabilities but that
bit about your capabilities but that ambition is really core or vision or
ambition is really core or vision or
ambition is really core or vision or whatever you want to name it another one
whatever you want to name it another one
whatever you want to name it another one is last decade is blue ocean strategy
is last decade is blue ocean strategy
is last decade is blue ocean strategy and blue ocean strategy said you know
and blue ocean strategy said you know
and blue ocean strategy said you know what forget about competitive advantage
what forget about competitive advantage
what forget about competitive advantage you need to follow a number of rules one
you need to follow a number of rules one
you need to follow a number of rules one rule is you have to create uncontested
rule is you have to create uncontested
rule is you have to create uncontested market spaces that don’t exist today and
market spaces that don’t exist today and
market spaces that don’t exist today and second rule is where competition is
second rule is where competition is
second rule is where competition is irrelevant and third rule is that you
irrelevant and third rule is that you
irrelevant and third rule is that you have to increase value and reduce costs
have to increase value and reduce costs
have to increase value and reduce costs at the same time these are three of the
at the same time these are three of the
at the same time these are three of the five rules I spare you the two other
five rules I spare you the two other
five rules I spare you the two other ones but that is the core to success now
ones but that is the core to success now
ones but that is the core to success now last year we have the opposite edge
last year we have the opposite edge
last year we have the opposite edge strategy which says no don’t do that
strategy which says no don’t do that
strategy which says no don’t do that stuff you have to take the profits that
stuff you have to take the profits that
stuff you have to take the profits that are right in front of you by extending
are right in front of you by extending
are right in front of you by extending your products by adding services by
your products by adding services by
your products by adding services by changing your business from a product
changing your business from a product
changing your business from a product business to for example a a network type
business to for example a a network type
business to for example a a network type of business so there’s all these kind of
of business so there’s all these kind of
of business so there’s all these kind of fats and there’s many more but you got
fats and there’s many more but you got
fats and there’s many more but you got the idea follow some basic magic rules
the idea follow some basic magic rules
the idea follow some basic magic rules and it’ll be successful I used to read
and it’ll be successful I used to read
and it’ll be successful I used to read that from cover to cover all these books
that from cover to cover all these books
that from cover to cover all these books and that reading started moving to
and that reading started moving to
and that reading started moving to skimming from cover to cover and later
skimming from cover to cover and later
skimming from cover to cover and later on I moved from skipping a lot of pages
on I moved from skipping a lot of pages
on I moved from skipping a lot of pages you know and eventually I just carry the
you know and eventually I just carry the
you know and eventually I just carry the book actually and I realized that my
book actually and I realized that my
book actually and I realized that my clients did exactly the same thing and
clients did exactly the same thing and
clients did exactly the same thing and if you’re in business class and you see
if you’re in business class and you see
if you’re in business class and you see the executives that sit there they do
the executives that sit there they do
the executives that sit there they do two things they consume a lot of
two things they consume a lot of
two things they consume a lot of alcoholic beverages and then they fall
alcoholic beverages and then they fall
alcoholic beverages and then they fall asleep with their strategy fat book in
asleep with their strategy fat book in
asleep with their strategy fat book in front of them and just check you will
front of them and just check you will
front of them and just check you will find out that the bookmark is always in
find out that the bookmark is always in
find out that the bookmark is always in the first few pages it’s never at the
the first few pages it’s never at the
the first few pages it’s never at the end so they also don’t make it all right
end so they also don’t make it all right
end so they also don’t make it all right and the question now is of course is why
and the question now is of course is why
and the question now is of course is why don’t we make it why are we just like a
don’t we make it why are we just like a
don’t we make it why are we just like a lot of people set up with these fats
lot of people set up with these fats
lot of people set up with these fats well I can think of three reasons
well I can think of three reasons
well I can think of three reasons interrelated reasons the first reason is
interrelated reasons the first reason is
interrelated reasons the first reason is that if you’re looking at the examples
that if you’re looking at the examples
that if you’re looking at the examples the experience of an apple it
the experience of an apple it
the experience of an apple it of remarkable insignificance to a
of remarkable insignificance to a
of remarkable insignificance to a company that produces cement I just take
company that produces cement I just take
company that produces cement I just take some of my clients the type of
some of my clients the type of
some of my clients the type of businesses a company that makes medical
businesses a company that makes medical
businesses a company that makes medical wristbands a company that actually is
wristbands a company that actually is
wristbands a company that actually is providing payroll services or private
providing payroll services or private
providing payroll services or private network services they don’t get a lot of
network services they don’t get a lot of
network services they don’t get a lot of that that stuff is nice to hear it’s
that that stuff is nice to hear it’s
that that stuff is nice to hear it’s interesting but it doesn’t apply to my
interesting but it doesn’t apply to my
interesting but it doesn’t apply to my business that’s what you often get so we
business that’s what you often get so we
business that’s what you often get so we need something more applicable the
need something more applicable the
need something more applicable the second reason is because you work
second reason is because you work
second reason is because you work through adverse selection adverse
through adverse selection adverse
through adverse selection adverse selection in the sense that we’re going
selection in the sense that we’re going
selection in the sense that we’re going to look at examples that are fitting the
to look at examples that are fitting the
to look at examples that are fitting the bill again what are you looking at
bill again what are you looking at
bill again what are you looking at you’re looking at the winners and you
you’re looking at the winners and you
you’re looking at the winners and you ignore the losers this is very risky
ignore the losers this is very risky
ignore the losers this is very risky so when just take the example of the
so when just take the example of the
so when just take the example of the vision people try to explain why
vision people try to explain why
vision people try to explain why visionary companies are successful in
visionary companies are successful in
visionary companies are successful in why vision is so important they take the
why vision is so important they take the
why vision is so important they take the examples of the ones who had a strong
examples of the ones who had a strong
examples of the ones who had a strong vision and were successful and usually
vision and were successful and usually
vision and were successful and usually they relate that to individuals like for
they relate that to individuals like for
they relate that to individuals like for example Charles Lindbergh he had such a
example Charles Lindbergh he had such a
example Charles Lindbergh he had such a strong vision he crossed the Atlantic in
strong vision he crossed the Atlantic in
strong vision he crossed the Atlantic in the spirit of st. Louis in 1927 May 20th
the spirit of st. Louis in 1927 May 20th
the spirit of st. Louis in 1927 May 20th but we never talk about another Charles
but we never talk about another Charles
but we never talk about another Charles this Charles this Charles is Charles
this Charles this Charles is Charles
this Charles this Charles is Charles Nungesser he’s a French pilot who tried
Nungesser he’s a French pilot who tried
Nungesser he’s a French pilot who tried to cross the Atlantic 12 days before
to cross the Atlantic 12 days before
to cross the Atlantic 12 days before Charles Lindbergh and he got lost and he
Charles Lindbergh and he got lost and he
Charles Lindbergh and he got lost and he got the appropriate logo it seems like
got the appropriate logo it seems like
got the appropriate logo it seems like he knew what was gonna happen so anyway
he knew what was gonna happen so anyway
he knew what was gonna happen so anyway so this is this is of course never
so this is this is of course never
so this is this is of course never talked about or this guy this guy wanted
talked about or this guy this guy wanted
talked about or this guy this guy wanted to fly off the Eiffel Tower he had this
to fly off the Eiffel Tower he had this
to fly off the Eiffel Tower he had this vision he didn’t test this vision he was
vision he didn’t test this vision he was
vision he didn’t test this vision he was going to go very fast but actually went
going to go very fast but actually went
going to go very fast but actually went extremely fast the speed of gravity in
extremely fast the speed of gravity in
extremely fast the speed of gravity in other words he went straight down okay
other words he went straight down okay
other words he went straight down okay so this never appears in the press these
so this never appears in the press these
so this never appears in the press these are we only talk about the winners and
are we only talk about the winners and
are we only talk about the winners and we ignore their losers and that is very
we ignore their losers and that is very
we ignore their losers and that is very risky and if as a business executive you
risky and if as a business executive you
risky and if as a business executive you have to make decisions where your career
have to make decisions where your career
have to make decisions where your career is on the line
is on the line
is on the line you better look at the downside risk
you better look at the downside risk
you better look at the downside risk okay so that’s the first point the
okay so that’s the first point the
okay so that’s the first point the second point is of course that maybe
second point is of course that maybe
second point is of course that maybe there are other reasons maybe Charles
there are other reasons maybe Charles
there are other reasons maybe Charles Lindbergh’s plane had better engines
Lindbergh’s plane had better engines
Lindbergh’s plane had better engines than Charles Nungesser
than Charles Nungesser
than Charles Nungesser maybe the body structure was better it’s
maybe the body structure was better it’s
maybe the body structure was better it’s not necessarily that one thing that you
not necessarily that one thing that you
not necessarily that one thing that you take out of in isolation and the third
take out of in isolation and the third
take out of in isolation and the third reason why we have an issue with fans is
reason why we have an issue with fans is
reason why we have an issue with fans is that fans are also based on anecdotal
that fans are also based on anecdotal
that fans are also based on anecdotal evidence anecdotal evidence and that a
evidence anecdotal evidence and that a
evidence anecdotal evidence and that a theory is built around it as opposed to
theory is built around it as opposed to
theory is built around it as opposed to having a theory
having a theory
having a theory ouch bad word and actually getting
ouch bad word and actually getting
ouch bad word and actually getting evidence to support it for example let’s
evidence to support it for example let’s
evidence to support it for example let’s go back to blue ocean strategy we need
go back to blue ocean strategy we need
go back to blue ocean strategy we need to increase willingness to pay and we
to increase willingness to pay and we
to increase willingness to pay and we need to decrease cost that’s one of the
need to decrease cost that’s one of the
need to decrease cost that’s one of the rules can I find examples that follow
rules can I find examples that follow
rules can I find examples that follow these rules I even look around I find
these rules I even look around I find
these rules I even look around I find some the examples are often the same
some the examples are often the same
some the examples are often the same that’s always problematic because it’s
that’s always problematic because it’s
that’s always problematic because it’s always about circle it is so light or it
always about circle it is so light or it
always about circle it is so light or it is about dealt at the turn of the
is about dealt at the turn of the
is about dealt at the turn of the century but it’s not because there are
century but it’s not because there are
century but it’s not because there are some companies that follow these rules
some companies that follow these rules
some companies that follow these rules or happen to apparently have follow
or happen to apparently have follow
or happen to apparently have follow these rules that it applies to all
these rules that it applies to all
these rules that it applies to all companies in mathematics there is a
companies in mathematics there is a
companies in mathematics there is a fundamental difference between the first
fundamental difference between the first
fundamental difference between the first sign which says there exists does not
sign which says there exists does not
sign which says there exists does not mean for all if you don’t understand
mean for all if you don’t understand
mean for all if you don’t understand that in high school you have a chance of
that in high school you have a chance of
that in high school you have a chance of failing your final exam so if I now go
failing your final exam so if I now go
failing your final exam so if I now go back just look at the implications I’m
back just look at the implications I’m
back just look at the implications I’m working with the company that makes
working with the company that makes
working with the company that makes pentanes
pentanes
pentanes what our pentanes you don’t know I
what our pentanes you don’t know I
what our pentanes you don’t know I didn’t know either they’re oil
didn’t know either they’re oil
didn’t know either they’re oil derivatives pentanes butanes that kind
derivatives pentanes butanes that kind
derivatives pentanes butanes that kind of stuff and they’re used as a blowing
of stuff and they’re used as a blowing
of stuff and they’re used as a blowing agent in the production of foam now you
agent in the production of foam now you
agent in the production of foam now you know
know
know anyway pentanes our pentanes our
anyway pentanes our pentanes our
anyway pentanes our pentanes our pentanes
pentanes
pentanes try to increase willingness to pay our
try to increase willingness to pay our
try to increase willingness to pay our differentiation and lower costs at the
differentiation and lower costs at the
differentiation and lower costs at the same time cost our Rock button for all
same time cost our Rock button for all
same time cost our Rock button for all the players differentiation
the players differentiation
the players differentiation nobody cares we won the lowest price so
nobody cares we won the lowest price so
nobody cares we won the lowest price so hey we cannot find a blue ocean because
hey we cannot find a blue ocean because
hey we cannot find a blue ocean because we cannot satisfy that rule what do you
we cannot satisfy that rule what do you
we cannot satisfy that rule what do you say to the CEO I’m sorry sir in my case
say to the CEO I’m sorry sir in my case
say to the CEO I’m sorry sir in my case it’s a sir I’m sorry I cannot help you
it’s a sir I’m sorry I cannot help you
it’s a sir I’m sorry I cannot help you because I i cannot satisfy the
because I i cannot satisfy the
because I i cannot satisfy the conditions excuse me you better improve
conditions excuse me you better improve
conditions excuse me you better improve my performance or help me out what will
my performance or help me out what will
my performance or help me out what will the CEO say to the board so a non
the CEO say to the board so a non
the CEO say to the board so a non generalizable theory is very very
generalizable theory is very very
generalizable theory is very very dangerous so what do we need instead is
dangerous so what do we need instead is
dangerous so what do we need instead is an approach
an approach
an approach that doesn’t start from the evidence and
that doesn’t start from the evidence and
that doesn’t start from the evidence and ghosted there goes to the so-called
ghosted there goes to the so-called
ghosted there goes to the so-called theory we need a strong conceptual
theory we need a strong conceptual
theory we need a strong conceptual framework that we all agree upon and we
framework that we all agree upon and we
framework that we all agree upon and we make reasonable assumptions assumptions
make reasonable assumptions assumptions
make reasonable assumptions assumptions on ourselves on our customers and our
on ourselves on our customers and our
on ourselves on our customers and our competitors what are the assumptions on
competitors what are the assumptions on
competitors what are the assumptions on ourselves well that we maximize some
ourselves well that we maximize some
ourselves well that we maximize some objective for example profits not sales
objective for example profits not sales
objective for example profits not sales and profits because that’s contradictory
and profits because that’s contradictory
and profits because that’s contradictory yeah they often say that it doesn’t
yeah they often say that it doesn’t
yeah they often say that it doesn’t exist
exist
exist it’s either sales or profits because if
it’s either sales or profits because if
it’s either sales or profits because if I invest thousand dollars in something
I invest thousand dollars in something
I invest thousand dollars in something and gives me $1 in sale extra well do I
and gives me $1 in sale extra well do I
and gives me $1 in sale extra well do I do it well from a sales perspective I do
do it well from a sales perspective I do
do it well from a sales perspective I do it from a profit perspective I don’t do
it from a profit perspective I don’t do
it from a profit perspective I don’t do it so let’s be clear how about our
it so let’s be clear how about our
it so let’s be clear how about our customers what can we assume at our
customers what can we assume at our
customers what can we assume at our customers well customers they probably
customers well customers they probably
customers well customers they probably are looking for the best deal when you
are looking for the best deal when you
are looking for the best deal when you go to the store and you want to buy your
go to the store and you want to buy your
go to the store and you want to buy your TV you see an OLED TV you see an LED TV
TV you see an OLED TV you see an LED TV
TV you see an OLED TV you see an LED TV which one do you pick what depends it’s
which one do you pick what depends it’s
which one do you pick what depends it’s probably kick the one where the
probably kick the one where the
probably kick the one where the difference between your willingness to
difference between your willingness to
difference between your willingness to pay and your price is the biggest so I
pay and your price is the biggest so I
pay and your price is the biggest so I asked the salesperson says yeah do all
asked the salesperson says yeah do all
asked the salesperson says yeah do all that is much better but you can’t see
that is much better but you can’t see
that is much better but you can’t see the difference Yeah right why would I
the difference Yeah right why would I
the difference Yeah right why would I buy the oullette I buy the LED but
buy the oullette I buy the LED but
buy the oullette I buy the LED but they’re the really techie people they
they’re the really techie people they
they’re the really techie people they would buy the latest technology and they
would buy the latest technology and they
would buy the latest technology and they still buy the OLED TV and as you can see
still buy the OLED TV and as you can see
still buy the OLED TV and as you can see I go back to the old demand curve of
I go back to the old demand curve of
I go back to the old demand curve of economics but a real one not the
economics but a real one not the
economics but a real one not the straight ones that you have in these
straight ones that you have in these
straight ones that you have in these books and the last thing is about our
books and the last thing is about our
books and the last thing is about our competitors and these competitors cannot
competitors and these competitors cannot
competitors and these competitors cannot be ignored to pursue or to go for their
be ignored to pursue or to go for their
be ignored to pursue or to go for their self-interest these three assumptions
self-interest these three assumptions
self-interest these three assumptions seems to be reasonable if these are not
seems to be reasonable if these are not
seems to be reasonable if these are not reasonable we have to revisit of course
reasonable we have to revisit of course
reasonable we have to revisit of course this is not sensible if we cannot
this is not sensible if we cannot
this is not sensible if we cannot measure this and there the question is
measure this and there the question is
measure this and there the question is can we measure it for our objectives if
can we measure it for our objectives if
can we measure it for our objectives if its profits we can get our cost it comes
its profits we can get our cost it comes
its profits we can get our cost it comes down to our revenues it depends on our
down to our revenues it depends on our
down to our revenues it depends on our customers can we measure customer
customers can we measure customer
customers can we measure customer preferences can we get into the mind of
preferences can we get into the mind of
preferences can we get into the mind of the customer can we extract those
the customer can we extract those
the customer can we extract those preferences for products that they have
preferences for products that they have
preferences for products that they have never seen the answer is yes there is
never seen the answer is yes there is
never seen the answer is yes there is advances in decision analysis that allow
advances in decision analysis that allow
advances in decision analysis that allow you to craft together with the customers
you to craft together with the customers
you to craft together with the customers what their preferences really are it’s
what their preferences really are it’s
what their preferences really are it’s difficult but it’s feasible and it’s
difficult but it’s feasible and it’s
difficult but it’s feasible and it’s important and third the competitor
important and third the competitor
important and third the competitor how do we get that information not by
how do we get that information not by
how do we get that information not by doing a whole lot of analysis but what
doing a whole lot of analysis but what
doing a whole lot of analysis but what happens in organizations imagine you
happens in organizations imagine you
happens in organizations imagine you work for a company that does medical
work for a company that does medical
work for a company that does medical devices the medical device companies
devices the medical device companies
devices the medical device companies they work for example at Boston
they work for example at Boston
they work for example at Boston Scientific well guess what they work
Scientific well guess what they work
Scientific well guess what they work before at Johnson & Johnson or at Sauron
before at Johnson & Johnson or at Sauron
before at Johnson & Johnson or at Sauron they’ve done the tour and with that
they’ve done the tour and with that
they’ve done the tour and with that collective information people know quite
collective information people know quite
collective information people know quite well whether a competitor is likely to
well whether a competitor is likely to
well whether a competitor is likely to imitate or not imitate what you’re doing
imitate or not imitate what you’re doing
imitate or not imitate what you’re doing so this is all measurable otherwise what
so this is all measurable otherwise what
so this is all measurable otherwise what I would be saying is total nonsense it’s
I would be saying is total nonsense it’s
I would be saying is total nonsense it’s measurable what we cannot do is to
measurable what we cannot do is to
measurable what we cannot do is to impose unreasonable assumptions of
impose unreasonable assumptions of
impose unreasonable assumptions of economics an unreasonable assumption is
economics an unreasonable assumption is
economics an unreasonable assumption is what my professor in microeconomics told
what my professor in microeconomics told
what my professor in microeconomics told me at the University of Toronto in
me at the University of Toronto in
me at the University of Toronto in undergrad they were saying oh there is
undergrad they were saying oh there is
undergrad they were saying oh there is decreasing marginal utility it means
decreasing marginal utility it means
decreasing marginal utility it means that the first orange is more important
that the first orange is more important
that the first orange is more important than your second orange and your third
than your second orange and your third
than your second orange and your third orange so we have decreasing
orange so we have decreasing
orange so we have decreasing satisfaction now all of this now needs
satisfaction now all of this now needs
satisfaction now all of this now needs to be taken because we use that
to be taken because we use that
to be taken because we use that information starting from the customer
information starting from the customer
information starting from the customer to make better decisions not to believe
to make better decisions not to believe
to make better decisions not to believe our vision but to test our vision as you
our vision but to test our vision as you
our vision but to test our vision as you can see was important example a client
can see was important example a client
can see was important example a client of mine wanted to launch a new type of
of mine wanted to launch a new type of
of mine wanted to launch a new type of medical glove it had a higher protection
medical glove it had a higher protection
medical glove it had a higher protection against HIV infection should the doctor
against HIV infection should the doctor
against HIV infection should the doctor sting his or her needle into the glove
sting his or her needle into the glove
sting his or her needle into the glove and as a result their vision was to
and as a result their vision was to
and as a result their vision was to dominate this market but what they did
dominate this market but what they did
dominate this market but what they did was to test their vision and to go and
was to test their vision and to go and
was to test their vision and to go and try to understand if customers felt the
try to understand if customers felt the
try to understand if customers felt the same way because customers are the ones
same way because customers are the ones
same way because customers are the ones who make the decision you don’t decide
who make the decision you don’t decide
who make the decision you don’t decide your vision is the customer who decides
your vision is the customer who decides
your vision is the customer who decides the vision and it turned out that
the vision and it turned out that
the vision and it turned out that actually a whole lot of their customers
actually a whole lot of their customers
actually a whole lot of their customers didn’t care all their various segments
didn’t care all their various segments
didn’t care all their various segments oncologists lab workers dermatologists
oncologists lab workers dermatologists
oncologists lab workers dermatologists all these are actually where one segment
all these are actually where one segment
all these are actually where one segment there were no different segments they
there were no different segments they
there were no different segments they didn’t care less about that protection
didn’t care less about that protection
didn’t care less about that protection because they do not bathe in blood but
because they do not bathe in blood but
because they do not bathe in blood but the doctors the surgeons they did they
the doctors the surgeons they did they
the doctors the surgeons they did they really valued that protection it was
really valued that protection it was
really valued that protection it was very important which led them to have
very important which led them to have
very important which led them to have that vision but this is not enough
that vision but this is not enough
that vision but this is not enough importance and not enough let’s see if
importance and not enough let’s see if
importance and not enough let’s see if that translating willingness to pay and
that translating willingness to pay and
that translating willingness to pay and actually what happened is if you look at
actually what happened is if you look at
actually what happened is if you look at the willingness to pay for that
the willingness to pay for that
the willingness to pay for that increased protection he goes up from
increased protection he goes up from
increased protection he goes up from 10% protection to twenty to thirty to
10% protection to twenty to thirty to
10% protection to twenty to thirty to forty percent to ninety percent goes up
forty percent to ninety percent goes up
forty percent to ninety percent goes up very slowly but actually you know where
very slowly but actually you know where
very slowly but actually you know where it kicks in is seeing you go
it kicks in is seeing you go
it kicks in is seeing you go psychologically from 90% to 100% that’s
psychologically from 90% to 100% that’s
psychologically from 90% to 100% that’s where the doctors the surgeons really
where the doctors the surgeons really
where the doctors the surgeons really wanted to have this wanted to pay a lot
wanted to have this wanted to pay a lot
wanted to have this wanted to pay a lot for this glove and our customer our
for this glove and our customer our
for this glove and our customer our client could not do it technically they
client could not do it technically they
client could not do it technically they have to make steel gloves with no
have to make steel gloves with no
have to make steel gloves with no flexibility that was not feasible so
flexibility that was not feasible so
flexibility that was not feasible so what did they do they actually abandoned
what did they do they actually abandoned
what did they do they actually abandoned the vision and they actually change the
the vision and they actually change the
the vision and they actually change the vision into something totally different
vision into something totally different
vision into something totally different because customers did not support the
because customers did not support the
because customers did not support the vision so what is important what is the
vision so what is important what is the
vision so what is important what is the main takeaway of them trying to say if
main takeaway of them trying to say if
main takeaway of them trying to say if you make important strategic decisions
you make important strategic decisions
you make important strategic decisions important strategic decisions then it’s
important strategic decisions then it’s
important strategic decisions then it’s important to realize you should not
important to realize you should not
important to realize you should not follow simple rules and gather anecdotal
follow simple rules and gather anecdotal
follow simple rules and gather anecdotal evidence you don’t do that what you do
evidence you don’t do that what you do
evidence you don’t do that what you do is to understand that you cannot afford
is to understand that you cannot afford
is to understand that you cannot afford to make mistakes because your career is
to make mistakes because your career is
to make mistakes because your career is on the line in that case don’t believe
on the line in that case don’t believe
on the line in that case don’t believe your vision you don’t implement your
your vision you don’t implement your
your vision you don’t implement your vision you test your vision as part of
vision you test your vision as part of
vision you test your vision as part of your strategy and readapted if necessary
your strategy and readapted if necessary
your strategy and readapted if necessary and how do you do that by starting from
and how do you do that by starting from
and how do you do that by starting from our customers by understanding their
our customers by understanding their
our customers by understanding their preferences scraping these preferences
preferences scraping these preferences
preferences scraping these preferences which we can influence but we can never
which we can influence but we can never
which we can influence but we can never force a customer to buy things that are
force a customer to buy things that are
force a customer to buy things that are in line with our vision a customer is
in line with our vision a customer is
in line with our vision a customer is not a French goose or French goose you
not a French goose or French goose you
not a French goose or French goose you can force-feed it if it doesn’t want to
can force-feed it if it doesn’t want to
can force-feed it if it doesn’t want to eat right but a customer if what you
eat right but a customer if what you
eat right but a customer if what you make is not appealing to them given the
make is not appealing to them given the
make is not appealing to them given the competitor alternatives they will
competitor alternatives they will
competitor alternatives they will actually not buy your product so it’s
actually not buy your product so it’s
actually not buy your product so it’s important to understand their customer
important to understand their customer
important to understand their customer preferences willingness to pay
preferences willingness to pay
preferences willingness to pay competitors and then act accordingly
competitors and then act accordingly
competitors and then act accordingly understanding these two important
understanding these two important
understanding these two important dimensions of your strategy test your
dimensions of your strategy test your
dimensions of your strategy test your vision make sure that you reassessed it
vision make sure that you reassessed it
vision make sure that you reassessed it if necessary go for a different type of
if necessary go for a different type of
if necessary go for a different type of vision if you do this then if you make
vision if you do this then if you make
vision if you do this then if you make important decisions that are risky you
important decisions that are risky you
important decisions that are risky you leave much more comfortable with your
leave much more comfortable with your
leave much more comfortable with your decision and you will not put your
decision and you will not put your
decision and you will not put your career at risk thank you very much
career at risk thank you very much
career at risk thank you very much you
you
you [Applause]
”
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