Part 7 of What a Go-To Does Differently: Adapts

This is the seventh installment of a multi-part series to talk about what a Go-To does differently from the me-too pack:

Now what?

adapting-to-change-universestars

A Go-To Constantly Adjusts and Adapts

The world is continuously changing, and a Go-To keeps an eye on the horizon to constantly adapt to market conditions, evolving customer needs, and other factors that impact a company, like the economy, politics, regulatory policy, technology and so on. It even reinvents itself, when necessary.

A Go-To maintains humility and a healthy paranoia. I remember being in meetings with the senior leadership at Accenture when it was flying high with record growth and profits, and you’d have thought from the conversation that the company was on the verge of going out of business. The executives in the room understood that Accenture’s fortunes, like those of any company, could turn on a dime. The team took the same earnest attitude toward its strategic planning activity as a struggling startup does.

A Go-To also understands that, regardless of how unique its current offerings are, it will face competition. The market will invariably begin to fill up with me-toos going for a slice of that pie, so the Go-To must watch its back and work to stay ahead of the pack.

Technology companies, in particular, can’t stand still for three seconds before a competitor pops up or market conditions change. Oracle started as the only relational database company, but of course competitors came along, followed by new technologies. Though Oracle, by far, still maintains a solid leadership position in that space with nearly 50% market share, it is no longer the same company. It has built on its strengths to broaden into many technology and software solution areas, including numerous specialty niches, such as inventory management for communications service providers.

As of this writing, Apple, Google and Microsoft are the world’s three most valuable brands according to Forbes, but you’d never know it from the healthy paranoia pulsing throughout the headquarters of all three. None look the same as they did in the early days, and they all know that their offerings could become obsolete at any moment. They are always working intently on their next innovations.

A Go-To understands this: Companies that don’t change or don’t change fast enough often perish. As Andy Grove put it in his book, Only the Paranoid Survive:

…the person who is the star of a previous era is often the last one to adapt to change, the last one to yield to logic of a strategic inflection point and tends to fall harder than most.”

In recent years, some stalwarts within their markets, like IBM, have suffered for not embracing the trend toward cloud computing quickly enough. Over the next decade, it will be companies that don’t embrace the Internet of Things trend.

To really bring this point home, consider the S&P 500 Index. According to an Innosight 2012 study summarized in the briefing, “Creative Destruction Whips Through Corporate America,” an S&P company is replaced every other week; and whereas companies in 1958 stayed on the index an average of 61 years, today the average tenure is just 18 years. In the decade leading up to the study, over half of the companies had been replaced.

What This Means for You

Whether you are part of a large company or a startup, be sure you are constantly monitoring market changes and trends on the horizon and then analyzing how they might impact you. Look at what you need to do to adapt. The “Creative Destruction” paper I referenced above offers some pointed advice applicable to any company and talks about how P&G is doing it successfully, and I’ll be sharing additional tips in forthcoming posts.

Subscribe to the blog and stay tuned for some tactical how-to guidance.

Part 5 of What a Go-To Does Differently: Evangelizes

This is the fifth installment of a multi-part series to talk about what a Go-To does differently from the me-too pack.

What next?

screen-shot-2017-02-17-at-6-19-46-pm

A Go-To Evangelizes a Prescriptive Point of View on the Problem and Builds a Following

Once it has declared ownership of the problem, a Go-To develops a prescriptive point of view on what companies need to be doing to solve that problem and widely evangelizes that point of view. Guy Kawasaki would describe it as a “cause.” This is not a sales pitch. The point of view is a genuine perspective on what needs to be done, with or without the Go-To’s help.

The Stanford Technology Ventures Program (STVP), which is part of the Department of Management Science and Engineering in the School of Engineering at Stanford University has become the Go-To for technology entrepreneurship education, as evidenced by (among other things) the fact that the National Science Foundation chose it over numerous other institutions vying for a rare $10 million grant to help engineering students across the United States become more entrepreneurial and innovative. STVP firmly believes that all students can benefit from learning entrepreneurial leadership skills regardless of their major or intended career.

STVP faculty, staff and affiliates travel extensively and maintain close relationships with other leaders and influencers in technology entrepreneurship education and research. Almost everyone in entrepreneurship education around the globe knows or knows of STVP Professors Tom Byers, Kathy Eisenhardt and Tina Seelig, who are fervent evangelists of STVP’s point of view. They are so prolific in their “market,” that all of them have won numerous awards for their work and impact. Kathy Eisenhardt’s research is so influential that she was noted in 2008 as the most-cited research author in strategy and organization studies for the past 25 years, ahead of renowned Harvard management professor and author, Michael Porter.  Byers and Seelig won the prestigious Bernard M. Gordon Prize for Innovation in Engineering and Technology Education for their influence in this area. Presented by the National Academy of Engineering (NAE), then-president William Wulf said the NAE created the award as “essentially the ‘Nobel Prize’ for engineering educators.” All of them have written books regarding STVP practices and insights.

A Go-To understands the value and power of engaging audiences’ emotions with storytelling and drama. The problem provides dramatic tension as the villain, and the prescriptive point of view saves the day as hero.

In the early days of Salesforce.com, Marc Benioff clearly saw installed software as a villain. He firmly believed that software-as-a-service was the hero that could come to the rescue. Everywhere he went, he got up on his soapbox and delivered the same impassioned  message: Companies are better off with software-as-a-service instead of buying enterprise software packages that require dozens of people, millions of dollars and many months to install or even modify, once installed. This point of view was espoused in every facet of Salesforce.com’s activities and interactions with the market.

A Go-To understands the soft-sell power of thought leadership. 

When Frank Vain of private club industry consulting firm, McMahon Group, stands up in front of an audience of private club general managers, he doesn’t talk at all about McMahon Group. He educates the audience on the core problem facing the private club sector and McMahon’s research-based point of view on what club leadership teams can do to solve this problem. By the time he’s done openly and freely sharing his expertise, he’s essentially given a credentials presentation while keeping the audience hanging on his every word. It’s like standing outside a restaurant giving free samples of your most delicious dishes. Customers can’t help but want more.

A Go-To also understands the power of building a following, so that others in the market place start doing your selling for you.

In a prior post, I referenced my involvement in selecting the McMahon Group for a private club member research project. While meeting with us, Frank Vain didn’t sell us on buying services from McMahon Group, our own general manager did! Another example is Apple, which has an entire army of rabid fans who spread the Apple gospel on its behalf. Mozilla, proud provider of Internet browser, Firefox, actually engages its users in helping to maintain and improve the product through the Mozilla Project – they work for free, because they believe in the cause: choice and control online.

STVP has created a “community of believers” throughout academia, who also share its passion and belief in STVP’s philosophy. For many years, STVP led a series of annual conferences in Europe, Asia, Latin America and the U.S. to bring together entrepreneurship educators from across these regions to advance entrepreneurship education. STVP would share its approach and encourage others to to the same.  Professors around the globe have tremendous respect for STVP’s approaches and its role as a thought leader in this field. More importantly, there is incredible bonding that took place among the participants. There was a deep sense of camaraderie and mutual support. STVP provided these events as a service to their peers, but the events paid immeasurable dividends back to STVP in terms of what it learned, brand building, and other opportunities the events created for STVP.

Now, to you.

What does your company stand for? What do you believe your market needs to be doing differently? And how might you build your following?

[If you’re stumped, subscribe to the blog – I’ll be posting a how-to series on this later.]

Part 4 of What a Go-To Does Differently: Ownership

This is the fourth installment of a multi-part series to talk about what a Go-To does differently from the me-too pack.

Now we’ll talk about a Go-To’s purpose in life.

A Go-To Has a Higher Purpose: It Takes Market Ownership of a Problem

A Go-To says, “I’ll take this one. I’ll own this problem.”  A Go-To fixates on a market problem (or opportunity) and declares intellectual ownership for that problem or opportunity, effectivelthinkstockphotos-485715206y becoming the ringleader, the primary thought leader, for related discussions and market activity.

Cisco doesn’t talk endlessly about sensors and routers, it talks endlessly about how the “Internet of Everthing” will save lives or reduce risk for companies. GE has taken intellectual ownership for the “Industrial Internet of Things.”

Kaiser Permanente, the large health maintenance organization (HMO), doesn’t just offer an integrated delivery system – where you and your family can get all of your health care in one place, with a single set of medical records and a  multi-disciplinary team devoted to your well being  – it believes this model is the way of the future. Kaiser has been running its “Thrive” campaign for over ten years, offering tips for healthy living.  Many of its ads don’t talk about Kaiser at all. Screen Shot 2017-02-11 at 5.57.10 PM.pngThey address Kaiser’s higher purpose. One print ad shows an image of a jump rope curled into the shape of a human brain, with the copy, “Exercise doesn’t just make you feel better, offering a good defense against depression and anxiety. It helps you stay more alert and focused. Something you can think clearly about as you knock out just one last set. To learn more go to kp.org/thrive.”

According to Kaiser’s Diane Gage Lofgren, senior vice president, brand strategy, communications and public relations, and Debbie Cantu, the company’s vice president, brand marketing and advertising, Kaiser wants to play the role of  health advocate “completely dedicated to health and well-being with the fact that, no matter what their stages of life, people want to be as healthy as they can be.”

Salesforce.com was founded to solve the problem of expensive enterprise software implementations, with an initial focus on the salesforce. Facebook’s goal is to connect everyone on the planet. Apple created iTunes to make it easy for iPod users to legally download songs vs. illegal options that were rampant at the time. Cybersecurity firm, RSA, is regarded as one of the most trusted brands in its space and, as a demonstration of its “ownership of the problem,” hosts the world’s largest and most respected annual information security conference.

So it’s not just about solving a market problem. It’s also about keeping the conversation alive and working with the market to make continuing, collective progress against the problem.

What problem do you or will you own?

Part 3 of What a Go-To Does Differently: Obsession

This is the third installment of a multi-part series to talk about what a Go-To does differently from the me-too pack. Part 1 talked about how a Go-To focuses.  Part 2 talked about the importance of establishing a beachhead. Next up: The importance of obsessing over what you do.

A Go-To is Obsessed with Its Area of Expertise

I used to have an old Mercedes diesel sedan and would take it to the San Francisco Go-To for these cars, Fred, at Silver Star Motor Services. Fred didn’t just work on old Mercedes diesels. He loved them. He was an aficionado. He was constantly thinking about them, reading about them, learning more about them. And he had strong opinions about them. He could bend your ear for hours talking about the ins and outs of these cars. He wasn’t showing off, he was waxing poetic about something he was passionate about. He would just light up at the thought of these cars. It wasn’t a business or job for him – it was his life.

A Go-To doesn’t just specialize. A Go-To is a passionate aficionado, a devotee. A Go-To obsesses. And a Go-To is very opinionated when it comes to a particular market issue.

steve-jobs-iphoneSteve Jobs was obsessed with distinctive design. He insisted that Apple’s mantra be simplicity. In his mind, consumer technology was too complex, hard to use, and ugly. As a result, the company has always been obsessed with creating innovative, easy-to-use technology that people have an emotional connection with. When Apple started to work on the iPhone, Steve Jobs didn’t instruct the development team to create a device that would put a computer in your pocket. His directive was: “Create the first phone that people [will] fall in love with.” According to Former Apple product manager, Bob Brochers, “The idea was, he wanted to create something that was so instrumental and integrated in peoples’ lives that you’d rather leave your wallet at home than your iPhone.” Steve Jobs was clearly passionate, obsessive and strongly opinionated about how people should interact with technology, and these qualities have informed everything Apple has created, even after his passing.

800wi-jpgWhen Marc Benioff founded Salesforce.com in 1999, he was absolutely passionate about the need for companies to move away from installed software and to adopt the software-as-a-service (SaaS or “cloud”) model. I saw him on stage at a conference in 2006, and he relentlessly and completely unapologetically pounded on his primary thesis that installed enterprise software was on its way to extinction. At the time, it was still an emerging idea, but Salesforce.com was so passionate about the idea that it put a “stamp” of the word “software” in a red circle with a slash through it on every ad, on its website and any other bit of material associated with the company. Benioff wore a trademark pin of the image everywhere he went, including on the stage that day. It is difficult to find an article or presentation by him that does not espouse his point of view on this topic.

I’m obsessed with the importance of companies becoming the Go-To in their markets. What are you obsessed with?

Infographic: Four Go-To Brands That “Own” Their Markets

This is a follow-up to my previous post and infographic, “Twelve Reasons It’s Better to Be the Go-To Than a Me-Too.” As it illustrates, achieving market dominance as the differentiated Go-To in one’s market offers lots of advantages. I thought it would be fun to provide a follow-up with some well-known names that people in tech can relate to, though there are many, many more out there. Though all of these serve a variety of markets now, they all started with a laser focus on one core offering, establishing market leadership before branching into other areas. Once again, enjoy and share. Better yet, send me your own examples of Go-To companies.

lina-group-inc-4-go-to-co-samples