Thinking Big Is Not Enoudh-chapter Five

           Americans are noted for their preference for scale. Magnitude is a measure of meaning. The bigger the better. ''Thinking Big'' is the distinctive and perennial American slogan. A few years ago it was only kooks, impecunnious student couples, and two-car suburbanites in high personal property tax towns who were presumed to be attracted by Volkswgen's peculiarly European slogan : ''Think Small.'' Volkswagen's slogan worked not because it competed with America's think-big attitudes but because it actually complemented...

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Selectivity and Segmentation

          New time are upon us. The traditional idea of the mass market, on which so many American business fortunes were built, is dying a gradual death. It may even be a complusive death. With fits and starts and occasional dramatic profits, it is still with us, but not, in the traditional sense, for long. It is being replaced by a new kind of market dominated by a new and powerfully different kind of consumer.            The age of the indiscriminate mass consumer is in its twilight. We...

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Conclusion

          All this raises a seeminglys frightenng question: If conformity and rigidity are necessary requisites of organization, and if these in turn help stifle creativity, and furthermore if the creative man might indeed be stifled if he is required to spell out the details needed to convert his ideas into effective innovations, does all this mean that modern organizations have  evolved into such involuted monsters of administration that they must suffer the fearful fate of the dinosaur-too big and inwiedly to survive?  ...

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Adding Flexibility

           Finally, the large organization has alternatives to the alleged ''conservatizing'' conssequences of bigness. The realatively rigid organization can build into its own processes certain flexibilities that would provide fructifying opportubities for the creative but irresponsible individual. Some of these alternatives were discussed earlier.             Some of them, however, have created their own organizational problems, some of them not terribly reassuring. The fact is that...

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The advices Business

It is to be expected, therefore that today's most ardent advocates of creativity in business tend to be professional writers, consultants, professors and often advertising agency executives  Not surprisingly, few of them have any continuing , day to day responsibility for the difficult task of implementing powerful new business ideas of a complex nature in the ordinary type of business organization. Few of them have ever had any responsibility for doing work in the conventional kind of complex operating organization....

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The Psychology of " Idea Men "

The fact that a consistently highly creative person is generally irresponsible in the sense that we have used this term is in part predictable from what is known about the freewheeling fantasies of very young children. They are extremely creative, as any kindergarten teach will testify. They have a naive curiosity that stumps parents with question like, "Why can you see through glass?" Why is there a hole in a doughnut?" Why is the grass green?" It is this questioning attitude that produces in them...

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The Chronic Complainers

As I have said, "identation" is nit a synonym for "inovation," conformity " is bot its simple antonym, and innovation is not the automatic consequence of creative thinking. Indeed, what some people call conformity in business is less related to the lack of abstract creativity than to the lack of responsible action, whether it be the implementation of new or o;d ideas. The proof of this is that in most business organizations, the most continually creative men in the echelons below the executive level are men who are...

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WhyDoors Are Closed

The reason the creative malcontent speakers this way is that so often the people to whom he addresses his flow of ideas do, indeed, after awhile, ignore him and tell him to go away. They shut their doors to his endless entreaties ; they refuse to hear his ideas any longer. Why? There is a plausible explanation. The reason the executive so often rejects new ideas is that he is a busy man whose chief day in, day out task is to handle an ongoing stream of pressing problems. He receives an unending flow of question on which actions must...

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Making Ideas Useful

Innovations necessary in business, but it begins with an idea with some body's proposal. How can the man with a new idea also be responsible  in the organizational sense?At least two "ideas" may be helpful : 1. He must work with the existing situation. Since the executive is already awhile he shuns more new ideas to solve problems he did not even know existed. He needs to get things done, not just more advice about what things to do or how to do them. The "idea man" has to learn to accept this as a fact of...

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Need for discipline

Writers on the subject of creativity and innovation invariably emphasize the essential primacy of the creative impulse itself. Almost as an afterthought they talk about the necessity to teaching people to sell their ideas and stimulating executive to listen to the ideas of subordinates and peers. Then they often go on casually to make some unconscious statement about the importance of creating a permissive organizational climate for creative people. They rarely try to look at the executive's job and suggest how the creatives...

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Limits of Servitude

Limits of Servitude         The trouble with thinking of oneself as providing services-either in the service industries or in the service industrie-is s or in the customer-service sectors of manufacturing and retailing companies-is that one almost inescapably embraces ancient, preindustrial modes of thinking. Worse still, one gets caught up in rigid attitudes that can have a profoundly paralyzing effect on even the most resolute of rationalist.          The concept of ''service'' evokes, from the...

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Promise of Manufacturing

Promies of Manufacturing            Now consider manufact, nuring. Here the orientation is toward the efficient production of resultot toward attendance on other. Relationship are strictly businesslike, devoid of invidious connotations of rank or self.           When we think about how to improve manufacturing, we seldom focus on ways to improve our presonal performance or present tasks; rather, it is axiomatic that we try to find entirely new ways of performing present tasks and, better yet,...

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Field versus Factory

Field versus Factory        People think of service as quite differnt from manufacturing. Service is presumed to be performed by individuals for other individuals, generally on a one-to-one basis. Manufacturing is presumed to be performed by machines, generally tended by cluster of individuals whose sizes and configurations are themselves dictated by the machines' requirements. Service (whether customer service or the service of service industries) is performed "out there in the field" by distant and lossely supervised pople...

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Systems selling

It is fashionable to talk about systems selling. It is not so clear what it means and where it applies. The term originated, in fact, not with the seller but with the buyer. The federal military establishment developed the practice of buying major weapons and communications packages through a single prime contractor. Instead of buying individual items for a battleship, such as the ship's shell, the artillery, the electronic submarine sighting equipment, and the telecommunications devices, it bought them as a single package from a single company,...

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Three 2 Kinds of Systems Selling

In doing this, Litton demonstrated that there are, using the conventional terminology, three different kinds of systems selling three different kinds of augmented products : the product system, the contracting system and the service system. A conventionally defined product system consists of products combined through engineering and design into an operating unit to perform a specific function. The example of the battleship fills that bill admirably, as does Litton's integrated mix of retailer equipment. Systems contracting does not sell systems,...

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Conglomerates and Marketing

One of the best examples is Litton Industries. The company is known as a conglomerate, and yet many of Litton's acquisitions were a process of creating under a single roof the might otherwise have to buy separately on the open market. Thus, some years ago, Litton acquired and combined the Monroe Calculating Machine Company and the Swedish cash register company, Sweda. Subsequently it acquired Kimball, the company that manufactures the unit control punched tickets used by soft goods retailers for monitoring product movement and inventories. Then...

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"Tripping Out" and the Adult Dilemma

In such a world, combined with generic product standardization and far above subsistence living, it is not surprising that man responds eagerly to the fascinating shock of the unexpected. The enormous attractions of marijuana  contact sports, television violence, and literary "sex and sadism" are understandable. They provide man with escape not escape from reality but escape back to reality. He wants to escape from the artificiality that the machine has imposed on his life and return to  more primitive involvement...

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The sensate Society

Three factors combine to emphasize the accelerating necessity to build excitement into the very core of business activity. One is that we live in a society in which so many people have so many more things and so much more money than need to sustain life at some reasonable level of amenities. Second is that there is so little to set one generic product off from another. And third is the inevitable routinization of man's daily task, whether in business, at home, or at play. Routine is a consequence of mechanization....

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The Slide Rule versus the Human Rule

The issue is a simple one : What is the relative importance of the slide rule versus the human rule ? the Human rule is more important, even in selling slide rules, than is generally conceded, more important than sellers are generally aware. The ingredient of excitement and other embellishments are central characteristics of the products themselves. They must be viewed as part of the essential characteristics built into the product from the beginning. The importance of this is further ad perhaps best illustrated to...

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Payoff from Excitement

Excitement is a fragile and abstract commodity not  likely to attract the serious attention of solid executives schooled in the arcane arts of finance  law, and manufacturing. Yet it is as crucial for new product success in cars, computers, and cutting tools as in cosmetics. That is why the annual machine tool trade show in Chicago increasingly has the extravagant appearance of Pucci's Paris showings. Elderly, gray- haired presidents of stolid Milwaukee machine- tool companies, austerely encased...

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Creating Actionable Product Definitions

Only philosophers can afford to define products in ontological terms and that is only because for them it makes no operational difference what the definition is. For any body to whom it makes a difference, the definition must have actionable content. It must suggest a concrete course of action. The examples of he augmented products cited above have in common a single attribute, they contain features  that produce results a competitive plus. These key feature  the features that distinguish these products...

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Survival for the Small company

Because this new competitions is costly, it creates survival problems for the small members of industries dominated by large firms. It is to be expected therefore, that survival for the small firm will increasingly take the form of carving out highly specialized niches in markets that the large, think big firms have not yet organized themselves to reach, or indeed cannot reach that. Faced with the thriving aggressiveness of mass merchandising stores that sell well known major appliances at relatively rock bottom prices, major department stores...

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Organized Entrepreneurship

The president, whose ultimate job is to secure the organization's future cannot escape the fact that is successful future requires the creations of customers. This means that marketing's talent of studying the consumer must be developed and enlisted, while the entrepreneurial audacity to capitalize on its findings must be cultivated and employed, especially at the upper levels. Unfortunately, it is difficult for person with little or no intimate exposure to the entrepreneurial process to know what...

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What the Chief Must do

Information, discipline, planning, structure, and order these are in escapble organizational requisites. The larger the organization, the more they are required. But the more they are required, the more their restrictive consequences must be offset by more emancipating styles at the apex. Marketing is the one corporate function that is least effectively governed in a traditionally orderly manner. Unfortunately, it is the implicit recognition of this fact which so often causes marketing to be governed so sloppily....

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Unintentional Communication

The higher the person's rank, the more fully his unintentional commiseration will be seen and the more elaborately they will be interpreted. The higher his rank, the greater the significance that will be attached to his untended rather than his intended communications. Every body knows that the rules are less important than the ropes. The rules are that the intended communications be very carefully structured. The president's speeches are prepared with the penultimate care given to state documents. The object...

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Where the Action Is

There is no question that a large , complex organization needs formal procedures and standards. But it is precisely because it needs them that it needs to guard against their unrestrained proliferation. Even more, it needs to guard against their becoming a crutch of management and a substitute for the executive getting his hands dirty. For example  there is tendency in many large organizations to operate almost exclusively through written reports and to make judgments almost exclusively...

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The Power of Management Styles

The rigid requirements of management style are not without their helpful purposes, however. Therein lies the awful dilemma of modern leadership. The chief executive helps set the management style. If he does not for his own decisions insist on the requirement f completed staff work, neither will his subordinates. The result would certainly be catastrophic. The large, complex organization cannot effectively execute its day-to-day tasks without constant, careful study of its operations, without carefully systematic...

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Limits of Scientific Management

What distinguishes this analysis from the more common type of forecasting and staff reporting is that it is qualitative and protective rather than quantitative and extrapolation  It requires creative and cerebral inputs rather than quantitative and arithmetical ones. The available "facts" with which Xerox's top management dealt were entirely different from those used by the consultants and the staff. Not that the consultants and the staff were incapable of such inputs, rather, their reason...

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What's at Shake

More is at stake than the life of the business. Also at shake is the kind of life the business will lead and the kind of people available to run the business. The manager of the R & D department may return from the campuses with magnificently promising "A" students who will produce products that the silent architect does not want. He wants only low-cost imitations of other companies  proved product. The R & D head could have saved himself lots of headaches and the company lots...

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The Task at The Top

Let us once again look at the special role of the chief executive and see how it imposes on him the special necessity for independent strategic thinking. The central task of a business is to create and keep a customer. The chief function of the business's chief executive is to see that the business will constantly succeed in that endeavor  A great many chief executives confine their efforts in this regard to assuring that appropriate financial and management resources will be available. Some have answered very elaborately the...

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Decision or Choice?

Managers are increasingly withholding complex decisions until " all the facts are in " and the situation has been "thoroughly studied," Judgement is suspended until the staff has reported. But finally, when the decision is made at the corporate top, it is neither a decision nor a judgement. It is a choice- and generally not even a choice between alternatives, rather the choice is between accepting or rejecting the staff's elaborately documented and heavily supported proposal. It is, more over, a choice in which the line executive does...

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Thinking : The New Necessity

The irony is clear : The more data we get, the less time is available for their effective use. Hence the more effective we get at providing data, the greater the requirement that we spend more preparatory time deciding specifically what we want them for what are the relevant issues and questions? The necessity of thinking is intensified, not obviated, by the prodigality of data and information. The feedback consequences of this are also clear. The computer must be harnessed to give the executive more time to think so that he can effectively use...

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Thingking : By the Boss or by His staff ?

Yet high-echelon executive decision making in the large corporation seldom exhibits evidence of very much careful thinking  The decision making process is generally assumed to involve a heavy input of judgement. The implication is that thinking is what guides judgment. Yet when we look st the criteria by which men are chosen for top positions, no one will deny that it is successful experience the predominates, not evidence of competent thinking  Men are systematically rotated into various assignments...

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The Role of Marketing

Since produce line planning bears so visibly on the company's future posture, the chief executive has a particular responsibility to expect that the marketing department will supply him with the data and the advice necessary for informed decisions as to what is to be produced, now and in the future. Data Are Not Information  The enormous prodigality of the computer has so accelerated the process of data accumulation that we often actually know less than we did before. Great masses of data...

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ergo, air cargo

Similarly, supplementing a factory- produced product with services is completely different from running a factory, and it is different from the usual way of selling the product. A classic example is the work of American Airlines during its early efforts at promoting air freight. The motivation was obvious. Airplanes carried people all day long and halfway through the night. But from midnight until dawn these costly but highly mobile fixed assets remains idle. Searching for new uses, American sought out the...

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The Problem of Defining the Problem

The marketing concept views the customer's purchasing activities at being problem-solving activities. This view of what the consumer does can have a profound effect on how the supplier or seller conducts his affairs. It affects more than how he does business and how much business he does. It affect what the consumer is actually trying to do, the seller will see that his problem as a seller is quite different from what it is usually assumed to be.Only after he defines his problem properly can the seller decide what is proper for him...

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The marketing Chief and the Chief Executive

PART I MARKETING IS NOT the devious art of separating the unwary consumer form his loose change. While it encompasses many commercial arts- selling, pricing, product policy, merchandising, promotion, advertising- marketing is these things and lots more. Marketing is concerned with all the exhilarating big things and all the troublesome little things that must be done in every nook and cranny of the entire organization in order to achieve the corporate purpose of attracting and holding costumers. This means that marketing is not just a business...

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The marketing Chief and the Chief Executive

PART II Of course marketing is interested in efficiency. But he most palpable fact  of its existence is that it cannot easily control the events or conditions that produce efficiency  The major events or conditions of its operations are the actions of its competitors and the behavior of customers. More than any other corporate functions, marketing constantly faces energetic adversaries against which i must struggle for success. Success is defined as consumer patronage. What makes success especially hard to attain is the fact that...

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The marketing Chief and the Chief Executive

PART III Of course, the chief executive is not alone. He has staff,line lieutenants, and others to help him with decisions. He can insist, if proper documentation is not possible, certainly on proper reasoning from his marketing aides. Yet anybody who has diligently worked his way up to the upper echelons of an organization knows how easily the bodies can get buried, how easily bosses can be misinformed and even deceived by well-meaning subordinates taking fragile little liberties with the facts. One major purpose of this book is to...

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The marketing Chief and the Chief Executive

PART IV It is not a textbook. It is certainly not a dandy "How-to" book.Nor is it a book which, like a detective novel, proceeds with mathematical precision from some obvious beginning, step by to a clear resolution in the end. Only in fairy tales and pulp romances are things smoothly resolved in such a way that everybody "lived happily ever after," except  of course the evil villains, who get their just desserts. Real life is, as the real story goes, "one damned thing after the other," Hebce, this book makes no lyrical promises of liberating...

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The marketing Chief and the Chief Executive

PART V We are all fated to live in evironments and under conditions not of our own making. For that rezason we are all fated to lives of accommodation and compromise. But if we develop fot ourselves a reasonably clear notion of specific purpose and direction, we can, given effort and resolution, achieve considerable control over our destinies. We need not invoke the doctrine of free will to declare that we can be active agents of ous environment. The purpose of this book is to talk about marketing and the corporate purpose inoperable terms-terms...

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The marketing Chief and the Chief Executive

PART VI Who was responsible for this company's awful fate? In the end, it is he chief executive who must be blamed, but if the company had been organized like today's large corporation, the original blame would have to rest with the marketing vice- president. His department is the company's eyes and ears to the world to which the company addresses all its efforts. His department is responsible for selling what the company addresses all its  efforts. His department is responsible for being in touch with the constantly evolving reality of the...

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Product Line Planning and Corporate Strategies

According to Prof. E.Raymond Corey, one of the pioneer authors on the subject, "Product planning may be defined as the determination of the company's basic objectives, of what products it will make and sell, and of what the specification of these product will be.'' What a product's specification shall be requires, first, understanding that a product or service is not what most people thi...

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Product Line Planning and Corporate Strategies

If we define a product in tis simplest commercial terms it is this: A product is something people buy-that is, in some magnitude that makes it profitable. If people don't buy it, it's not a product. The key is, "Do they buy it?" Why do people buy poduct? Leo McGivena once said, "Last year one million quarter-inch drill bits were sold-not because people wanted quarter-inch drill bits but because they wanted quarter-inch holes." People dont'buy product, they buy the expectation of benefits. People spend their money not for goods and services, but...

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Product Line Planning and Corporate Strategies

But it goes even further. The marketing vies also demands the active recognition of a new kind of competition that is in galloping ascendance n competition between what companies produce in their factories, but between what they add to their factory output in the form of packaging services, advertising, costumes advice, financing, delivery arrangements, warehousing, and other things that people val...

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what is a product

When the outputs of competing factories are essentially identical and their prices the same, the conversion of an indifferent prospect into a solid customer requires a special effort. Whether the product is cold-rolled steel or hot cross buns, whether accountancy or delicacies, competitive effectiveness increasingly demands that the successful seller offer his prospect and his customer more than the genetic product itself. He mmust surround his generic product with a cluster of value satisfactions that differentiates his total offering from his...

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fertilizer, sex, and cigarettes

The necessity of creating the proper buying atmosphere  of producing properly promising packaging, and of offering sufficiently appropriate customer services is so obvious to today's businessman that he is largehearted that he is responding to that necessity. Yet to do these things well, he must be aware of the fact that he is doing them at all. Any number of companies, upon being told of International Minerals and Chemical's customer consulting services, will respond with impressive examples of...

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Bionic Hand

PART 3 A history of body-restoration attempts, in the form of man-made hands and legs and feet, lines the selves in Robert Lipschutz's office at the Rehabilitation Institute of Chicago (RIC). "The basic technology of prosthetic arms hasn't changed much in the last hundred years, "he says. "Materials are different, so we use plastic instead of leather, butthe basic idea has been the same : hooks and hinges moved by cables or motors, controlled by levels. A lot of amputees coming back from Iraq get devices like these. Here, try this on, "Lipschutz...

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Bionic Hand

PART 4 Kuiken need an amplifier to boost the signals form the nerves, avoiding the need for a direct splice. He found one in muscle. When muscles contract, they give off an electrical brust strong enough to be detected a technique to reroute severed nerves from their old, damaged spots to other muscles that could give their signals the proper boost. Bionic woman Kitts imagines a hand movement, and muscle activity in her residual arm-decoded by a computer on her back causes the actual motion. When she straps on the actual motion. When...

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Bionic Hand

PART 2 Kitts is living proff that, even though the flash and bone may be damaged or gone, the nerves and parts of the brain that once controlled it live on. In many patients, they sit there waiting to communicate-dangling telephone wires, severed from a handset. With microscopic electrodes and surgical wizardry  doctors have begun to connect these parts in other patients to devices such as cameras and microphones and motors. As a result, the blind can see, the deaf can hear, and Amanda Kitts can fold her shirts. Kitts is one...

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