Shift Ahead

Allen Adamson, Joel Steckel

• Publisher: AMACOM
• Year: 2017
• ISBN:
  9780814438343
• Topic: Business
• Subtopic: Business General
• Index: Business

This book taps into both success stories and cautionary tales from others to provide you with a smart, calculated approach to knowing both: 1) when to change course and 2) how to pull it off.

In a world that's changing faster and more furiously than ever, the ability to shift focus is critical. Why is it that some organizations can continually evolve to meet the times and the marketplace, and others can't? How do some companies always seem to know the perfect season to shift gears, as well as the rights methods to implement when doing so, while others go down sinking when a simple shift would've saved everything?

Packed with insightful interviews from leaders at HBO, Adobe, BlackBerry, National Geographic, Microsoft, Kodak, and elsewhere, Shift Ahead explains how to:

• Spot warning signs that it's time for a reinvention
• Overcome obstacles standing in the way of your company's future goals
• Maintain authenticity when shifting gears
• Execute changes seamlessly, no matter how bold they are

Today more than at any other time before, knowing when to shift, and how to do so successfully, is the key to remaining competitive. With Shift Ahead, this difficult yet imperative maneuver will become the key to your company's long-term success!

1

WHY THIS BOOK?

It’s a good question. And a good part of the answer resides in the word relevant. To say something is “relevant” is to say that it matters. Being relevant has always been a critical factor for success in all walks of life. Writers and artists want their work to be relevant. Musicians want their music to be relevant. Filmmakers want their movies to be relevant to viewers. Scientists and researchers want their discoveries to be relevant. Teachers want their lessons to be relevant. We all want to believe we are relevant to our employers and to our partners. But, more germane to this book, businesses must continually ensure that they are relevant to their customers if they want to continue to stay in business. A central premise of this book is that to remain relevant, businesses must indisputably know why they matter to their customers.

That said, maintaining relevance in a world that is changing so very, very fast is very, very challenging. (Lest you doubt that the world is changing fast, when was the last time you got late-breaking news from an actual newspaper versus a media app or Twitter feed, took a picture with a camera instead of a phone, thought there was no possibility for a self-driving car, sent your resume through the mail rather than posting it on the cloud, or watched a television show at the time it actually aired?)

The ability to stay relevant is being significantly challenged by the accelerating pace of change—and new ways of doing things—that are emerging with every passing day.

As Thomas L. Friedman, award-winning author and columnist for the New York Times told us, the planet’s three largest forces—Moore’s Law (technology), the Market (globalization), and Mother Nature (climate change and biodiversity loss)—are accelerating all at once, transforming five key realms: the workplace, politics, geopolitics, ethics, and community.

“When change is happening at five miles per hour, if you get off track it’s not that big a deal, because how far off track can you get? But when change is happening at 500 miles per hour, a small error in navigation can have a huge effect. If you don’t start every day by asking, What world am I living in? What are the biggest drivers in the world? What are the biggest drivers shaping more things and places?, you won’t get the proper diagnoses. This really matters more than ever,” Friedman told us when we spoke. “These three forces aren’t just changing the world; they’re fundamentally reshaping everything. And I would say that, as such, they require massive innovation in both business and society. Change is happening at a compound rate and innovation has to happen at a compound rate in these other realms. That’s the main argument in my book [Thank You for Being Late]. Either we align ourselves with these drivers to shape the world to get the most out of them or not. That said, I would also say you need to build off that solid foundation.”

Breakthroughs in science, data analysis, healthcare, media, and education are occurring at compounded rates of speed. The way we bank, secure our homes, get our entertainment, measure the effect of our exercise regimens, acquire information, share information, buy our food, use energy to run our households, and perform almost every other daily activity is changing literally before our eyes and during our lifetimes. The ongoing transformations in the way technology works, businesses work, and almost everything else in the world works is having a major impact on how we work, plan, decide, think, and live.

It was with this idea in mind that we set out to write Shift Ahead. It is based on our hands-on experience, our academic research, and most significant, our more than 100 interviews with senior management and category experts from a wide spectrum of applicable fields. We wrote Shift Ahead to document how the smartest companies and organizations shift their strategies in order to stay relevant in the face of the swift and exponential changes in everything from technology to the forces of globalization, from politics to culture, from consumer tastes to human behavior. We wanted to find out how they shift ahead—how they stayed ahead of the curve, the competition, and the evolving requirements of their customers—given the barrage of evolving challenges.

We also wanted to clarify how businesses and organizations shifted the focus of their endeavors without losing focus on what they stand for in the minds of consumers. As marketing professionals, we know that in a world as transparent and skeptical as this one, authenticity has taken on far greater significance. We found in case after case that staying connected to your organizational DNA, staying true to your “true north” as you shift ahead is critical for credibility. Firms that shift ahead, but without maintaining a focus on who they are, do so at their own peril.

One goal of this book is to distill the experiences of over 100 companies through the lenses of our diverse practical and academic backgrounds to provide usable and, yes, relevant lessons learned on how to stay relevant in this frenetic world. We want these lessons to be as applicable to small start-ups and nonprofits as they are to multinational organizations. We want them to be as beneficial for brick-and-mortar establishments as they are for online enterprises. With a minimal amount of buzzwords and jargon, and with a wealth of, again, relevant examples, Shift Ahead demonstrates how organizations across a wide range of categories effectively and efficiently shift gears, shift direction, but always with the intention of shifting ahead, so as to continue to matter in a meaningfully different way to those they serve.

As marketing professionals, we’d like to share a quick lesson in one of the fundamentals of marketing having to do with relevance, what we call being “meaningfully different.” Marketers know it’s not enough to be merely relevant to be worthy of a customer’s admiration and loyalty. Something must be relevantly different to attain this status. This is not an emerging business school concept, especially as it relates to organizational, brand, or even personal success. It has always been a factor in whether a business succeeds or doesn’t, success being quantified as being able to solve a problem that is important to a customer better than anyone else can. How to most efficiently get from point A to point B. How to get clothes cleaner. How to give children a healthy start to the day. How to quench thirst. How to get better gas mileage. How to alleviate a headache. How to feed a puppy as opposed to an older dog. How to save money on airfare. How to store and share photographs. How to find a reputable plumber, electrician, or spouse. The best businesses, the best brands, achieved their positions because they found a gap in the marketplace that needed filling, or identified a problem that needed solving, and they did it better than their competition at a cost that makes it worthwhile doing. That is the essence of the market-based firm.¹

About twenty-five years ago the global communications firm Young & Rubicam (Y&R) developed one of the most respected proprietary tools in the advertising industry for figuring out how a brand is performing relative to others in its category. Brand Asset Valuator (BAV) is a diagnostic tool that not only indicates how a brand is performing, but provides insight into what must be done to keep the brand healthy and strong (i.e., relevant) going forward.

The BAV is the world’s largest database on how consumers see brands. It purports to provide insight on how brands grow, get into trouble, and can recover. BAV collects consumer perceptions of approximately 43,000 brands along seventy-two dimensions. It reports the percentile for each of these measured brand dimensions for each of the brands compared to the entire database. For example, a single United States Postal Service (USPS) brand characteristic might score a 90, meaning survey respondents rated that characteristic higher for the USPS than for 90 percent of the other brands in the database.

As a result of extensive statistical analyses of the underlying data, BAV has found it effective to aggregate these seventy-two dimensions into four fundamental measures underlying the brand asset. These measures, referred to as “pillars,” are:

1. Energized Differentiation (a brand’s unique meaning with motion and direction)

2. Relevance (how appropriate the brand is for you)

3. Esteem (how you regard the brand)

4. Knowledge (an intimate understanding of the brand)²

These pillars represent empirically grounded combinations of the seventy-two dimensions and are the basis of most generally accepted uses of the BAV data. These four pillars, and the subset of the seventy-two brand dimensions that contribute to each of them, are shown in Figure 1-1.

The relationship between differentiation and relevance provides insight into the future of the brand. More relevance than differentiation suggests the brand may be in danger of becoming a commodity. Esteem and knowledge, the other two pillars, make up a brand’s stature. A brand with a higher level of esteem than level of knowledge is a brand that enjoys a good reputation, although people may not know a lot about it. This puts the brand in a great position to convince consumers to want to know more about it. Too much knowledge and not enough esteem and consumers might say, “Hey, I know a lot about you and you’re nothing special.” In the case of leading brands, like Apple, Disney, GE, BMW, Amazon, and Google, all four pillars are strong.

BAV represents the world’s largest brand database, and it continues to evolve. In 2005, an additional dimension of Energy was recognized, which relates to forward momentum of a brand. BAV measurements have been successful in predicting stock market performance, and a theoretical portfolio has exceeded the performance of the Standard & Poor’s (S&P) index for every year in the last decade. Collaborative work with academia is ongoing to develop a worldwide valuation of a brand’s contribution to a firm’s market capitalization. The U.S. work has expanded to include over 200 categories, representing over 3,000 brands measured each quarter.

Figure 1-1. BAV’s work is based on the “Pillars of the Brand Asset.”

Source: Adapted from Natalie Mizik and Robert Jacobson, “The Financial Value Impact of Perceptual Brand Attributes,” Journal of Marketing Research 45 (2008), 16

We had the opportunity to have an in-depth conversation with John Gerzema, CEO of the BrightSight Group, who helped develop BAV during his tenure as global chief insights officer at Y&R’s BAV Consulting. Author of several books, including Brand Bubble: The Looming Crisis in Brand Value and How to Avoid It, he is a pioneer in the use of data to identify social change and to anticipate and adapt to new trends and demands. Gerzema’s firm marries financial management with brand management to help businesses understand and mine the relationship between their customers and their brands. Talking to us about BAV, he said, “We live in an age of ‘compressed change.’ Brand building is completely different from the way it used to be. Positioning used to be planting a flag and stepping back. Now the terrain is moving at such speed and ferocity that it’s difficult to think in a static way about positioning. Erosion is critical to track. You have to be able to figure out why consumers are falling out of love with brands. Consumers don’t just want brands to be different and relevant, but to keep being different and relevant. . . . Successful brands recognize this and know it’s not a place, it’s a direction. They must constantly evolve, not stand still.”

BAV reflects the spirit of this book. First, it is forward looking; it indicates when a brand’s differentiation in the market is starting to lag. This is one of the early indicators that there’s trouble ahead and that a brand risks becoming irrelevant if it doesn’t shift ahead. Second, BAV prevents myopic thinking—another dynamic in being able to stay relevant. By studying brands across categories, BAV allows you to see where your brand resides within the entire consumer experience, not just the category in which you compete. As the lines between industries and offerings continue to blur—especially in media and technology—this is a critical factor in being able to determine whether what you are promising still matters to people. It’s essential to be able to see in which competitive set your business or brand sits; in which perceptual space it exists in people’s minds. One of the things we’ll explore in this book is the ways in which you can see your business or brand within a broader context—a factor critical for shifting initiatives.

Basics covered, we now answer what you can expect to take away from this book. We’ve taken an iterative approach to shifting ahead, parsing the process as a series of practical and concrete steps, beginning with a discussion of “red flags.” Like all red flags, these are the early-warning signals. How do you know when, or if, it’s time to shift ahead? How do you know if it’s already too late, or if it’s too soon? While the lagging indicators that a change is required are pretty easy to see—sales are sluggish, Wall Street is getting testy with performance, or people are unfriending you on Facebook and the like—the leading indicators are not nearly as easy to detect. For instance, consumer attitudes for a certain food group, media choice, exercise-tracking device, gaming app, or automobile are gradually turning one way or another. Will this attitude stick, reach a tipping point, and permeate a wider audience, or will it just fade away? Or, say the implications of a new technology are just starting to take hold. What marketplace markers should you look for as you consider whether to shift your business strategy to chase the shiny new object, whatever the cost, or cool your jets and wait and see how it might apply to your industry in the long run? Using multiple examples, in Chapter 2 we examine the most significant red flags to heed and discuss the potential repercussions for acting, or not, along with the potential steps and resolutions that can help mitigate less-than-positive outcomes.

Throughout the book, we generalize teachable moments from our 100-plus interviews with those who experienced, firsthand, the ramifications of shifting ahead to stay relevantly different in a fast-changing world. Some of our interviewees were successful. Others were not. Others still have not seen their fates decided. Relative to red flags, for instance, we heard Maryam Banikarim, global chief marketing officer (CMO) at Hyatt, delivering a speech at Columbia Business School. Before joining Hyatt, she was the first-ever CMO at media giant Gannett, where she was credited with repositioning the company and its brands. She began her career at Young & Rubicam. “Look at Airbnb and Uber,” she shared about early-warning signs. “If you had said to somebody ten years ago there’s going to be a business where you’re riding around in some stranger’s car, they would have been like, ‘Are you crazy?’ There is no question that what will be here in ten years will not look like what it looks like today. That said,” she continued, “it is very hard to get a company to transform when it’s not on fire. One of the interesting things about having been in the media business early on is that we experienced disruption [before] other businesses. Most businesses are being disrupted today, but media was one of the earlier industries. We actually saw what was coming and experienced it much faster. It forced us to broaden the way we thought about the business, to broaden our lens. It also taught us to follow our North Star when things get more chaotic.

“We’ve had to do this in the hospitality industry,” Maryam said, “where some think the lane is pretty narrow. We have been forced to think about our category differently, to think about ourselves as creating experiences. But people—like habits—are hard to change, especially when it comes to compensation. I remember hearing about a project that Time Warner was looking at in 1993 called Pathfinder. It was basically the Internet before its time. There was another project in 1993 called the Orlando TV Project, which was like Netflix. The people who had these ideas were at the pinnacles of their careers and, as a result, they were afraid to move forward. They didn’t want to take a risk. They killed off their own innovations because they were not being compensated for these types of initiatives. It’s a scary lesson to think about. There’s not a day that goes by that there isn’t some crazy crisis that forces you to have to rethink how you’re operating. The world is changing at a rapid pace and you have to be good at being adaptive all the time.”

“Adaptive all the time,” as Maryam said, is a key headline for being able to shift ahead. While red flags are early-warning signs that a shift is in order, there are some common barriers that inhibit firms from being able to execute a successful shift ahead. In Chapter 3 we take a hard look at these barriers, which can be financial, cultural, and psychological. Again, using specific examples related to the financial, cultural, and psychological barriers to change, we examine some of the usual suspects, among them Kodak, BlackBerry, Toys “R” Us, an...

Table of contents

• Cover
• Half title
• Title
• Contents
• Acknowledgments
• Chapter 1: Why This Book?
• Chapter 2: Heed the Red Flags
• Chapter 3: The Road Barriers
• Chapter 4: Ready the Organization for a Shift
• Chapter 5: Making Sense of the Road Ahead
• Chapter 6: Which Shift to Make? It Depends on What’s Ahead
• Chapter 7: Leadership
• Chapter 8: Success Stories: What it Takes for the Long Haul
• Chapter 9: Success Is Never Final
• Concluding Remarks
• Notes
• Index
• About the Author
• Sample Chapter from Lead Right for Your Company’s Type by William E. Schneider
• About AMACOM
• Copyright