Twenty years ago, Tom Peters wrote this classic which now acts a beacon in these changing times. Here is my take on his advice.
A General Electric executive has pointed out 9 out of 10 acquisitions are a waste of time and a destruction of shareholder’s value
McKinsey study in 1986 of acquisitions made between 1972-83 a mere 23% increase shareholder value. Highest success rate was small acquisitions in related fields. Largest failure rate was acquisitions of large organisations in unrelated fields.
- Characteristics of successful firms:
- Flatter structures
- Populated by more autonomous unit Orientated towards differentiation
- Quality and service conscious
- Constant innovation in all areas
- Partnership with all parties connected to the organisation
- Leadership that loved change
- Measuring and reporting the right stuff
Marketing should focus on market creation not market sharing
Ten new differentiators with products / services each 90 days
Top management commitment to quality means focusing on a lot of big things and little things
Create a parallel structure for quality management
Each day the quality of a product or service is getting a little bit better or worse
Quality is what a customer says he needs not what your tests indicate.
A well-handled problem usually breeds more loyalty than you had before the negative incident
Work out the ten-year value of the customers a team is supporting. Then assess their training, their status, their resources they have
Sales incentives should be geared to existing customers not new ones.
Some considerations on customer satisfaction:
- Surveys every 60-90 days
- Using an external survey company
- Measure direct and indirect customers
- Results in the customer satisfaction study should be the “go or no go” for share of bonus pool
- Wide communication of customer satisfaction results