Momentum Effect, The
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Momentum Effect, The: How to Ignite Exceptional Growth

Momentum Effect, The: How to Ignite Exceptional Growth


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About the Book

A few rare companies have discovered the secret to sustained high growth: momentum. They’ve learned how to create the conditions that lead to exceptional organic growth—which feeds on itself, continually accelerating the business forward. In The Momentum Effect, J.C. Larreche introduces a complete framework for gaining momentum, keeping it, and harnessing its power. Drawing on new research and powerful case studies, Larreche demonstrates the stunning role of momentum in value creation. He sets out the process for developing the “power offers” that lie at the heart of this powerful force. This book offers a systematic process for creating momentum that will work in any business, in any industry, and under any market conditions. You’ll learn how to create new value through a momentum strategy and build the leadership competencies to deliver highly profitable growth over the next six months…five years…even decades.   •Pioneer or die: drive momentum and harness its stunning power How momentum-powered firms create 80% more shareholder value •Understand the drivers of momentum strategy Craft power offers, mobilize for growth, and more •Master the Momentum Process: design and execution Eight specific steps to implement a long-term winning momentum strategy •Climb the five-step Momentum Leadership Ladder How leaders can systematically generate and direct momentum   "This book shows you how to build momentum for growth and leave your competitors trailing far in your wake!" –Sir Richard Branson   "J.C. Larreche’s book, The Momentum Effect, is a must-read. It highlights why more marketing spend and further value extraction are not the key determinants for future growth. To create powerful momentum for exceptional growth, it is essential to offer innovative value to the marketplace. The Momentum Effect outlines just how to achieve this. The results are illuminating. —W. Chan Kim & Renée Mauborgne, Authors of Blue Ocean Strategy   "How can companies achieve exceptional and sustained growth? The Momentum Effect explores this challenge and reveals successful strategies for originating new sources of growth and value from customers with the power to unlock great potential.” —Dr. Daniel Vasella, Chairman & CEO, Novartis AG, Basel/Switzerland

Table of Contents:
   Preface xxi PART I Discovering Momentum 1     Chapter 1The Power of Momentum 3         Where’s the Impetus? 3         What’s Holding Us Back? 4         Pushers, Plodders, and Pioneers 5         Momentum-Powered Firms 9         The Power of Momentum in Action 11             Wal-Mart 11             Toyota 12         Join the Momentum League 14     Chapter 2 The Source of Momentum 15         The Day Gary Kildall Went Flying 15         The Source of Microsoft’s Momentum 16         How Value Is Created 17         Where Is the Unlimited Potential? 19         Drivers of Momentum Strategy 21             Exploring the Customer’s Space 21             Crafting “Power” Offers 22             Mobilizing for Growth 23         Momentum Strategy at Work: The iPod 24         How Momentum Growth Opens a New Efficiency Frontier 25             Moving from Compensating to Momentum Strategy 26             Less Is More, More for Less 27         Unlock Your Unlimited Potential 28     Chapter 3 The Road to Momentum 29         Vasella’s Eureka Moment 29         The Momentum-Powered Firm in Action 30             The Results Momentum Can Deliver 31         The Twin Engines of Momentum 32             Momentum Design 34             Momentum Execution 36         Momentum Design at Skype 38         Momentum Execution at Skype 41         Making Momentum Systematic 44 PART II Designing Momentum 47     Chapter 4 Compelling Insights 49         IBM Is Listening Again 49         The Value-Origination Blind Spot 50             Virgin Atlantic 51         Customer Insights 52             3M: Post-it Notes 53             Alcoa Packaging: Fridge Pack 53             Dassault: The Falcon 7X Aircraft 54         The Systematic Discovery of Compelling Insights 54             The Knowing-Doing Discovery Path 57             The Listening Discovery Path 58             The Learning Discovery Path 58             The White Discovery Path 59         The Exploration Process 60             Guiding Exploration 60             Enabling Exploration 63         Explore the World for Insights 65     Chapter 5 Compelling Value 69         What Women Want 69         What Does a Customer Value? That Depends 70         Customer Myopia 72         The Customer Value Map 73             Delighting Customers 74             Abusing Customers 76         What’s It Worth? How Customers See Value 77         The Customer Value Wedge 78             Financial Customer Value 80             Functional Customer Value 81             Intangible Customer Value 82             Emotional Customer Value 82         Let the Customer See Better Value 84             The Golden Pathway to Increased Customer Value 85         Go Deep, Be Compelling 87     Chapter 6 Compelling Equity 89         The Man Who Taught an Old Dog New Tricks 89         The Concept of Compelling Equity 90         Transaction Myopia 92             Lifetime Value: The First Step in Correcting Transaction Myopia 94         The Customer Equity Wedge 96             Financial Customer Equity 97             Functional Customer Equity 98             Intangible Customer Equity 99             Emotional Customer Equity 100         The Customer Equity Map 102         Optimizing Customer Equity 104             The Three Paths of Customer-Equity Optimization 104         Zero-in on Customers Who Drive Momentum 106     Chapter 7 Power Offer Design 109         A Bank That Doesn’t Like Banking 109         What Is a Power Offer? 110         Exploring for Customer Traction 112         From Exploration to Design of a Power Offer 114             The Compelling Value Path to the Power Offer 115             The Compelling Equity Path to the Power Offer 118         The Pillars of a Power Offer 120             Compelling Proposition 123             Compelling Target 124             Power Crafting 125         The Virtuous Circle of Power Offer Design 127         Design for Traction 129 PART III Executing Momentum     Chapter 8 Power Offer Execution 133         A Tape Recorder That Didn’t Record 133         The Execution of the Power Offer 134             From Product Focus to Value Focus 135             Momentum as a New Business Model 135             The Dynamic Evolution of Power Offers 137         The Business Value of Momentum 140         The Chain Reaction of the Power Offer 143             The Virtuous Circle of Momentum 143             Breaking the Vicious Circles 146         Building and Sustaining Momentum 147             Understand the Emotional Drivers of Momentum 147             Implement a Systematic Action Roadmap to Momentum 148         Turn Traction into Momentum 150     Chapter 9 Vibrant Satisfaction 153         Moments of Truth 153             Why Vibrant? 154         The Emotions Beneath Satisfaction 155             “Dissatisfaction Inside” 155             Why Intensity Matters 156             Champions and Desperados 158         Satisfaction Metrics 159             Top Box Ambition 160         The Impact of Vibrant Satisfaction 162         Aiming for Vibrant Satisfaction 163         Strategies for Vibrant Satisfaction 164             Mobilize for Vibrant Satisfaction 165             Detect Sources of Dissatisfaction 166             Convert Unsatisfied Customers 168         Nothing Less Than Vibrant 172     Chapter 10 Vibrant Retention 175         For Want of a Key 175             Loyals and Runaways 176         The Emotions Beneath Retention 177             “Freedom Inside” 177             “Temptation Outside” 178         Retention Metrics 179         The Business Impact of Retention 180         Vibrant Retention 182             Passive Retention             Forced Retention 185             Vibrant Retention 187         Strategies for Vibrant Retention 188             Mobilize for Vibrant Retention 188             Detect Sources of Defection 189             Convert Defecting Customers 190         Nothing Less Than Vibrant 192     Chapter 11 Vibrant Engagement 195         Harry Potter and the Exceptionally Engaged Readers 195             Advocates and Detractors 196             Why “Vibrant” Engagement? 197         The Human Nature of Engagement 197             “Belonging Inside” 197             “Broadcasting Outside” 199         Ambitious Engagement Metrics 200         The Business Value of Engagement 201             Accelerator I: Boosted Compelling Value 201             Accelerator II: Boosted Compelling Equity 202             Accelerator III: Boosted Customer Acquisition 203         The Richness of Vibrant Engagement 204             Paid-For Value and Ambient Value 205         The Customer Engagement Portfolio 206         Strategies for Vibrant Engagement 208             Mobilize for Vibrant Engagement 208             Detecting Sources of Engagement 209             Converting for Vibrant Engagement 210         Competing in the Momentum-Powered League 212         Nothing Less Than Vibrant 214 PART IV Total Momentum 217     Chapter 12 Internal Momentum 219         Give Me a Squiggly! 219         Mobilizing the Energy Within 220         Building Internal Momentum 221             Compelling Employee Insights 221             Compelling Employee Value 223             Compelling Employee Equity 224             Employee Power Offers 224             Vibrant Employee Satisfaction 225             Vibrant Employee Retention 226             Vibrant Employee Engagement 227         The Momentum Culture 228             The Customer Spirit: “The Real Battlefield Is Outside” 230             The Competitive Spirit: “Outsmarting Your Opponent” 231         Internal Momentum in Crises 231             Wal-Mart’s German Fiasco 232             Johnson & Johnson and the Tylenol Crisis 232         The Best of Human Nature 235         Harness Your People Power 236     Chapter 13 Momentum Leadership 239         Can You Ski the Face? 239         Generating and Directing Momentum 240         The Momentum-Leadership Ladder 241         Momentum Leadership 243         Momentum Leadership 245         Momentum Leadership 248         Tips for Aspiring Momentum Leaders 252             Commit to Value Origination 253             Practice Momentum Concepts Continuously with Your Contacts 254             Have Respect for People 255             Spend Quality Time with Customers, Employees, and Stakeholders 256             Be Momentum Consistent 257         It Starts with You 258     Chapter 14 Epilogue 261         Seizing the Unlimited Potential 262         The Momentum Journey 262         Our Momentum Future 264     Bibliography 267     Endnotes 281     Index 313

About the Author :
J.C. Larreche is Professor at INSEAD, the famous international business school, where he holds the Alfred H. Heineken Chair. It was as a student at Stanford that he was first nicknamed “J.C.” by his friends. It was also there, in the midst of Silicon Valley, that he developed an interest in the way some firms achieve exceptional growth while others don’t. Since then, his research, teaching, and consulting activities have focused on the discovery of systematic and practical ways to help businesses achieve quality growth that is not only exceptional but also sustainable.   J.C. has always combined his academic life with a business career, and is particularly sensitive to the practical day-to-day realities which executives have to deal with. He is a renowned consultant with leading global corporations, most of them listed in the global Fortune 500. Aged just 36, J.C. was appointed a nonexecutive director of the multinational firm that became ReckittBenckiser, and he kept that position for an exceptionally long tenure of 18 years. He is the Founding Chairman of StratX a strategic development consultancy with offices in Boston, Paris and Tokyo.   His academic work concentrates on fostering the fundamental capabilities that impact a firm’s ability to deliver growth and especially marketing excellence, customer focus, and innovation. J.C. is the author and coauthor of many books and articles, including Markstrat, the leading strategic marketing simulation used by more than one million executives worldwide. He has won many awards, including Marketing Educator of the Year and BusinessWeek’s European Case of the Year award. J.C. is also a respected executive educator whose programs are among the most highly rated in INSEAD’s excellent portfolio.


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Product Details
  • ISBN-13: 9780132716338
  • Publisher: Pearson Education (US)
  • Publisher Imprint: Addison Wesley
  • Language: English
  • Sub Title: How to Ignite Exceptional Growth
  • ISBN-10: 013271633X
  • Publisher Date: 26 Mar 2008
  • Binding: Digital download
  • No of Pages: 352


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