Archive for the ‘Marketing’ Category

Lessons We Can Learn From method

Thursday, July 15th, 2010

I am in the middle of my book research and writing, preparing for the fall 2011 launch of Grow: How the World’s Best Businesses Use the Power of Ideals to Outshine the Competition. As part of that research, I am visiting a handful of companies that rank highly in the study I designed with Millward Brown Optimor and the UCLA Anderson School of Management. The study has a 10-year scope, and highlights businesses that have grown their image with their consumer as well as their financial results. The brands that made the top of this list grow about two and a half times faster than competition.

One of these companies is method, in San Francisco, California.  Many of you are likely aware of method, and their story is nicely told on their website www.methodhome.com/.   I have visited them before, and I visited on July 12 to go much deeper with many of their leaders about what makes them special and successful.

Here’s a sample of some of the leaders I interviewed, and their quirky and wonderful titles:

Eric Ryan – Party Starter (Co-founder & Chief Brand Architect)
Andrea Freedman – Chief Financial Person Against Dirty (CFO)
Drew Fraser – Head Coach (CEO)
George Shumny – Chief of Retail Health (VP, Sales)
Josh Handy – Disruptor (Sr. Director, Design)
Matthew Loyd – Brand Poobah (VP, Brand Experience)
Michele Hall – The Laundress (General Manger, Fabric Care)

While I learned a tremendous amount on July 12, I wanted to share a few top line lessons we could all benefit from.

It’s all about the people behind the brand. So many companies say this; the way method brings this to life is simply amazing. They urge everyone to “bring yourself to work,” so that each person’s individual personality can make the brand better. But the most powerful story about how they focus on their people is the story of their recruiting process.

In all of my experience, and I have known companies who are terrific recruiters, this company sets a new standard. Everyone who is interviewed as a new employee receives up to 12 interviews from people all across the company, not just in the department in which they are applying. If the person makes it through the first round of interviews, they are given a homework assignment and asked to come back the next week.

The homework assignment is typically how the recruit would address some of their business challenges, and what they would do to continue to keep the culture “weird.” As they make a decision on a candidate, about 50% of the review is based on their experience, and the other 50% on whether or not the candidate is a cultural fit, and how they handled the homework assignment. The percentage of time their senior team spends on recruiting is staggering.

And they make very few mistakes in who they bring into the culture. They realize one bad hire is toxic.

I was also very inspired by the level of passion and energy with each person I met. And it was authentic; it wasn’t “spin” for my visit. Most of the people came from other companies, many large CPG companies. They came for the mission, and how this company treats their customers, consumers and employees. They feel free to bring their best ideas, and their best ideas are welcome. They truly are on a mission — to inspire the revolution for healthier, happier homes.

Never be complacent about your business mission, your “brand ideal” as I call it. This company has been mission-based since its founding nine years ago, but they continue to push it and ensure everyone in the company understands it, and is operating against that mission in their daily work. After my day of interviews, we went out for drinks and dinner, and the major topic of conversation was: “Is our mission well articulated, well understood, well deployed, well activated?”

Only do what competition can’t or won’t do. This brand is all about differentiation, in a category that previously had very few highly differentiated brands. They differentiate on mission, design, fragrance, sustainability, and efficacy. And, they get that balance right for their end consumers. Much like Steve Jobs at Apple does not go into a category he cannot disrupt, this brand never does anything competition has done, or likely will do.

Win with a compelling story for your retail customer. method sells to retailers, as many businesses do. I had the pleasure of talking with their Chief of Retail Health, George Shumny, and he did a role-play with me, where I was the customer and he was the sales person. His story hit everything a customer looks for — differentiation, image enhancement, margin growth, and collaboration. And, importantly, this brand is not for every retailer, and they don’t duck that. They don’t want to be everywhere.

CFO as chief storyteller. There are few CFOs who see their role as chief storyteller, but Andrea Freedman, Chief Financial Person Against Dirty, sees her role very much as keeping everything in perspective and keeping everyone’s eyes on the “horizon.” Their business is like most, it has its ups and downs. Andrea sees herself as the person who keeps telling the story about what this brand is, what success is, and how they are making progress against it in the short, medium, and long-term.

Always be looking to learn outside your category. When I arrived at method, I walked into their lobby and there was a “class” going on. The teacher was Dan Germain, head creative at innocent, a UK based company that is another fantastic story in brand ideal, mission, and outstanding performance. Dan was in the middle of teaching a writing class to several method employees, and this was the culmination of a week he had spent at method, learning from them and sharing his experience to help them be better. And by the way, innocent is another business that I will be profiling in my book, Grow.

Finally, many thanks to Eric Ryan, Adam Lowry, and the entire method team for their inspiration, hospitality, and budding friendship.

The Ten Habits of Highly Effective Chief Marketing Officers (Habit #10)

Thursday, June 10th, 2010

I am returning to my ongoing blog series on The Ten Habits of Highly Effective Chief Marketing Officers.  This series was inspired by a talk I gave to a client, and I have covered the first nine habits over the past few months.  I hope you have found them to be helpful … here is the final habit.

Habit #10:  Live Your Desired Legacy

This is the culminating habit.   If you are practicing the other nine, this one should be relatively easy to put into practice, to make a habit.  But it still takes deliberation, discipline, and action.

Living your legacy means that you think ahead about the lasting impact you want to leave behind you.  In Habit #2 we talked about being clear about what you stand for, and to be visible inside and outside the organization, acting on your beliefs.  Habit #10 goes beyond that, this is about focusing on what you will be remembered for, what lasting effect you will leave behind.  And if you do not think about that while in your role, and focus on it, it will not happen.

Vineet Nayar of HCL is a good example of a leader who is acting now to leave behind a legacy that will forever change HCL, and maybe even business at large. Tom Peters has said Vineet Nayar could be the next Peter Drucker.   Vineet’s new book “Employees First Customers Second:  Turning Conventional Management Upside Down” is an account of his personal journey to hold himself and his team accountable to employees, so the employees can serve their customers better and fufill the mission and promise of HCL.   That will be his enduring legacy.

My good friend John Pepper, the current Chairman of the Board of Disney, had a clear focus on his desired legacy when he was Chairman and CEO at Procter & Gamble.  He wanted to firmly establish the Purpose, Values and Principles of a rapidly globalizing company so it would never lose its special culture.  And he wanted to enter China and Central and Eastern Europe in a way that would be the foundation for a healthy P&G business for generations, but also the beacon for how businesses should operate in these emerging economies.

Most CMOs are not good at this.  My two examples above are from CEOs.  CMOs think too short term, and don’t fully embrace the lasting impact they can have.  In my consulting I try to work with CMOs to isolate the few things they can focus upon that will make their companies stronger, their employees more inspired and energized, and their customers and partners more loyal.

My practical advice is to write down the 2-3 things that will be your legacy, and do this at about your 6-month anniversary in the role.  You will know enough by then to get it “about right.” Build a plan to achieve it within 3-4 years, and revisit it every six months.  Share it with your colleagues.  Be accountable to yourself and them to do it.

When A.G. Lafley offered me the GMO job at P&G in the summer of 2001, I took about a week and wrote a one page memo on what I hoped to do in the role, what I would leave behind that was better because I was there.  I shared it with him.  It became my guiding light in the role, and essentially did not change throughout my tenure in the role.  And what I am most proud of (and it continues to evolve, a measure of a strong legacy) is that P&G’s approach to brands has forever changed … from a narrow view of their functional benefits to an expansive, life-changing, purpose-driven view of their impact on the lives of the people they serve.

The last thought I will leave with you on legacy is that this process will greatly enhance your satisfaction with your job.  It provides a “north star” for all you do, and also helps you decide when you have done what you set out to do.  Then it is time for a new adventure!

VCU Brandcenter Graduation Speech

Monday, May 24th, 2010

On May 22, I had the honor of addressing the VCU Brandcenter Class of 2010 in Richmond, Virginia. Following are my remarks.

Professor Boyko, distinguished members of the faculty, parents, guests, friends, and graduates of the VCU Brandcenter Class of 2010. Good afternoon. I am honored to be with you today at your commencement.

The first thought I want to share with you is congratulations to each one of you; you have been through one of the most innovative programs in higher education. It’s amazing — a program only about fifteen years old, and it has already had a significant impact on our communications industry, and on higher education. In preparing my remarks to share with you, I enjoyed looking through your work, and from what I see, you are ready to go out into our industry and make a big difference.

What I love most about your school is its mission: To Radically Transform The Business Of Advertising And Branding By Training The Next Generation Of Leaders To Make Business Smarter, Less Conventional, And More Responsible. Smarter, less conventional, responsible — this is the right mission for you and frankly for all of business. I cannot remember who my commencement speaker was when I graduated from Franklin & Marshall and Penn State. That’s sad! I would like you to remember my remarks to you — one year from now, ten years from now. So, I’m going to make it easy. I’m going to give you three numbers to keep in your mind when you think of this speech: one trillion, one, and ninety-three.

One trillion. Do you know what that represents? One trillion dollars. This is the estimate of the size of the market you are entering. One trillion dollars a year are spent on marketing and advertising. Imagine that. And now imagine the incredible power of this, if it is directed and spent the right way. Imagine if all of that money was spent on brands who believed in and acted on your school’s mission.

I’m going to the Cannes International Advertising Festival this year to urge the industry to spend this money in a different way. I will be hosting a dialogue on June 25 called “The Burning Question.” You can follow it on line, and the buzz has already begun. I am trying to bring your school’s mission to life.

As you now leave VCU, and you enter jobs, or look for that perfect job, or begin your own venture, I’d like you to help spend that one trillion dollars a different way — a way that is aligned with your school’s mission.

The number one. One is for each one of you individuals. You came into the school two years ago with a unique story. The story continued to develop and unfold over the past two years. You learned about advertising. You learned about collaboration. You learned more about social media. You learned about leadership. You learned about impact. You might have fallen in love; I did in my graduate program.

Well, I’d like to ask each one of you, on this your graduation day, to synthesize all this learning and to think about how you will help change brands and our industry for the better. Make a commitment to yourself today to not forget your school’s mission and to stay committed to it. Movements and revolutions begin with one person, and each one of you can be a very positive force in shaping our industry for the better.

This is very important — that each one of you acts on this. Our industry is not in good shape. The Pew Research Center has data that shows that people think business leaders are at the very low end of the scale in adding value to society. We are behind lawyers. And, I have nothing against lawyers; my father was a lawyer, and I have a brother who is a lawyer — and one who is a federal judge. Think about what has happened in the business climate since you entered the Brandcenter: AIG, Lehman Brothers, Toyota, Goldman Sachs, BP.

This leads me to my final number: ninety-three. This is perhaps an obvious one, as there are ninety-three of you in this room graduating. Now, I have already talked about the impact of each one of you making a commitment to change the industry in some way for the better. Now imagine the power in this room if all ninety-three of you did that. Imagine if here in this room, there are ninety-three Lee Clows. Or ninety-three Oprah Winfreys. Ninety-three Rick Boykos. Ninety-three Bob Greenbergs. Ninety-three Carol Williamses. Ninety-three Mike Hugheses. Ninety-three Shelly Lazaruses. You get the idea. The power is in the movement and the power is in the numbers.

So, my message to you is to keep these numbers in your head. Resolve to put those one trillion dollars to better use. Resolve to make this industry better because you as an individual make a commitment that you act upon. And, stay connected with your ninety-three classmates about your journey, and inspire them to make a difference. With ninety-three of you, you certainly have the critical mass to do that.

To your great faculty in this room, they will continue to support you. They’ve already helped you make a difference. You owe them a big thanks, and I guarantee they will support you as you move out of here to make a larger difference to fulfill your school’s mission.

To your loved ones in the room, your friends and family, be proud of your graduates. They are entering a field of great possibilities for good. I have seen it over and over  in my career. I spent 25 years at Procter & Gamble, the world’s largest advertiser, and I saw what could happen if a team got electrified behind a mission, through a brand, to make a positive difference. It results in great business, great impact, and an organization you can be proud to be a part of.

Thank you again for this opportunity. Enjoy this day. And, remember — one trillion, one, ninety-three.

Thanks again.

The Ten Habits of Highly Effective Chief Marketing Officers (Habit #9)

Thursday, May 6th, 2010

I am returning to my blog series on The Ten Habits of Highly Effective Chief Marketing Officers.  I have already covered the first eight habits, over the past few months.  On to Habit #9: Think and Act Like a Winner — Your Customers Notice.

Several years ago, when I was serving as P&G’s Global Marketing Officer, I took note of an obscure small study on a brand in a European country.  The study essentially revealed that the consumers of that brand sensed that the people behind the brand were not inspired, not happy, not engaged.  And the brand was sick, boring, and declining in market share.

Wow.  I had never explicitly thought of looking at the root cause of a brand’s malaise as the engagement of the team behind the brand.  I would instead look at the product data — are we superior or not on the benefits that matter?  Is our distribution a competitive advantage?  Are we in stock at key times with key retailers?  Is our brand equity stronger than our competitors? Is our awareness at target levels?  Are our trial levels above competitors?

These are all fine and important questions.  But they are merely getting at symptoms of a potentially larger issue, the motivation and inspiration of the team behind the brand, or business.  Because when a team is not engaged, consumers sense this, and they do not want to part with their precious money to buy something that the “creators” of the brand do not believe in.

I had always believed that happy, motivated people drive better results.  And there is a boatload of research on that.  What I had not connected before this obscure study was that consumers can sense this through the packaging, advertising, in-store presence, partnerships, and distribution.  And consumers want to buy into a winner, they want to part of a team that is trying to make a difference through their brand.

As I like to say — and those who know me have heard me say this a million times — a brand or business is nothing more than the collected intent and behavior of the people behind the brand.  So be sure your team is thinking and acting like a winner — and put attention there first.

The Ten Habits of Highly Effective Chief Marketing Officers (Habit #8)

Thursday, April 8th, 2010

I am returning to my blog series on The Ten Habits of Highly Effective Chief Marketing Officers.  I have already covered the first seven habits, over the past few months.  On to Habit #8:  Do a Few Symbolic Things.

Great leaders simplify things.  They focus on the few things that really matter.  They are typically remembered for a few symbolic actions in the areas that matter.

One of my favorite leaders is the third President of the United States, Thomas Jefferson, who was a politician, farmer, inventor, architect, archaeologist, to name a few of his roles … but his two largest symbolic actions defined the man’s legacy.  He wrote the Declaration of Independence and founded the University of Virginia.

Yes, even as 21st century CMOs we can learn a lot from Thomas Jefferson’s life, but I would like to focus on this “habit” of doing a few symbolic things that reinforce your impact, your legacy.

Many of us go through assignments busier than we could ever imagine, only to realize, after a few years have gone by, that we cannot point to what is better because we were there.  That is not a good feeling.

My Habit #8 suggests to you to PROACTIVELY plan a few dramatic, symbolic actions that people will remember.  These actions are not random, they must be strategically reinforcing what your brand/business needs to win, to stand out, to make a difference.  And you must be choiceful — remember Jefferson only had two.

Steve Jobs at Apple is a master of this, and his story is often told so i will not belabor it.  His symbolic actions:  the iPod and the iPhone.  Maybe the iPad.

A few other examples that I like from CEOs and CMOs:

Jim Farley at Ford introducing the Ford Focus as a new business model for Ford and maybe the industry.  His launch of the “My Ford” system at the recent consumer electronics show in Las Vegas is another good example of a strategic, symbolic action.

Indra Nooyi and team  reframing Pepsi as a positive force with the “Refresh” initiative.  Also from Indra and team, the Sun Chips renewed purpose of  ”Healthier You, Healthier Planet” is showing the way for a new approach in snacks.

–Patrick Doyle at Domino’s Pizza with the very dramatic action of “coming clean” on the taste and quality of their pizzas, and promising that his new pizzas will exceed raised expectations. No doubt that is what Patrick will be remembered for in his tenure at Dominos.

David Zaslav and team at Discovery Communications launching the new series “Life“, which took four years to film, in fifty countries, with more than 70 cameramen and women. Dramatically and symbolically showing that the Discovery Network will be in a class of its own in exploring the curiosities of our planet.

–The actions can also be organizational changes or acquisitions; witness Publicis‘ Maurice Levy’s acquisition of Digitas to dramatically move his Groupe into digital competence.

At P&G, during my 7-year tenure as global CMO, I focused on two bold actions.  In 2003, I led a small P&G entourage to the Cannes Advertising Festival, forever changing the standards for P&G and it agencies in consumer-inspired creativity.  Later in the decade I led a movement to elevate the role P&G brands play with their consumers, more closely connecting the brands’ purposes with the company’s purpose.  This I am happy to say has only gained momentum under Bob McDonald and Marc Pritchard’s leadership.

What few symbolic things, or actions, will you be remembered for?  Are they big enough?  Are they reinforcing what your brand/business needs?  Are you proactively and deliberately planning them?  Final thought: while you should be planning your symbolic actions, be open to serendipity.  Bob Isherwood from Saatchi & Saatchi and a few senior Creative Leaders at P&G’s agencies suggested I go to Cannes in 2003; I was smart enough to listen to them and then make it a very symbolic action internally and externally.  And you know the story of Thomas Jefferson and the Declaration of independence … he was a reluctant author.