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Double-Digit Growth: How Great Companies Achieve It--No Matter What
Michael Treacy Manufacturer: Portfolio Trade ProductGroup: Book Binding: Paperback Similar Items:
ASIN: 159184066X |
Amazon.com
After Michael Treacy finished writing his bestseller, The Discipline of Market Leaders, he continued to track the companies profiled to answer one major question: how do market-leading companies foster growth? In Double-Digit Growth: How Great Companies Achieve ItNo Matter What the MIT Management Professor addresses this problem with a five-part portfolio of management disciplines. He offers case studies of well-known and little-known companies that have achieved growth year after year based on this diversified approach.His first three disciplines--"keep the growth you have already earned," "take business from your competitors," and "show up where the growth is going to happen"--may seem obvious, and even beyond the control of the average executive. But Treacy provides frameworks for applying each as business practice, not just wishful thinking. His fourth and fifth disciplines, "invade adjacent markets" and "invest in new lines of business," are perhaps the most controversial. Here, though, he is not advising rampant conglomeration. Rather, he stresses the need for acquisitions and expansions made based on reliable data predicting long-term growth with risk spread over diversified investments.
Treacy is not presenting a step-by-step formula for success. Through his quick, readable prose he offers instead a course in mental re-training for executives. A management team must construct tools for tracking and measuring its success against each of the five growth disciplines, and it must build a corporate culture that instills growth as a core goal. While he offers no guarantees, his arguments are compelling, and the nuanced management strategies he suggests seem a plausible base for attaining predictable growth. --Patrick O'Kelley
Book Description
The bestselling author of The Discipline of Market Leaders reveals how companies can achieve sustained growth.Customer Reviews:
Fail often, Fail fast, Fail Cheap.......2006-04-20
Growth-focused Management.......2005-12-27
Great insights, a must for corporate "victims" everywhere........2004-04-25
The highlights of the book are the way the ideas are laid out and then described in action with examples across several industries. Some of the tactics include; Spread the risk, Take small bites, Balance your strategies, and Commit to superior value. One key according to Treacy is to accept that growth is a choice. He describes managers talking about growth difficulties as "a little like listening to an addict in denial. Don't they understand that growth is a choice - a choice that lies entirely within their power and no one else's?" (Page 17).
Treacy covers 5 disciplines; Improving customer base retention; Market share gain; Market positioning; Penetrating adjacent markets; New lines of business. While these are certainly solid examples of the ways to approach growth, the real depth in the book is around understanding consumer behavior. He points out the reality behind why most "customer retention" strategies don't work, and how to increase "switching costs" of your products and services. Making your products and services "sticky" is a key to growth working well, by retaining current customers while attracting new ones.
While the information and theories here are certainly not the final word on growth, this book should be required reading for all the corporate "victims" blaming their woes on things outside their control. It is clear that countless opportunities exist within every market niche and through every economic trend to facilitate growth. Many companies do in fact continue to grow, and they are usually ones who are committed to it. The companies that do not grow are usually gone in time. The section on Corning, caught in the euphoria of the late 90's telecom boom, was a great example of how even market leaders fail to get ahead of the indicators and lose as a result.
Overall, a great read, with some good insights. I would have liked to see a bit more focus on the inspirational factors that great leaders bring to align their employees to deliver when the employees themselves may not see the way. That is obviously a huge key to executing a strategy, and was not covered as in depth as it could have been here. Otherwise, a good look at how to achieve growth and will likely cause many light bulbs to go on while reading.
Low Inflation Makes Revenue Growth Harder to Accomplish.......2004-02-09
Since then, inflation has declined to almost nothing, GDP has been stagnant during the Bush administration (with a recent up tick), and the dollar has been plummeting (making overseas revenues worth much less). That's a tougher environment to grow in than even the 1960s. So Double-Digit Growth is talking about a difficult target for those who are not in the highest growth industries. In appreciation of that point, Michael Treacy (coauthor of The Discipline of Market Leaders) says that companies should measure their growth in terms of total gross profits. So if you are expanding your value-added enough, you may be able to have double-digit growth while having less than double-digit revenue growth. That said, he argues that ANY company can have double-digit growth. I assume that he means it is POSSIBLE. Based on the track record of the last three years, most would agree that it?s IMPROBABLE though if we look at time frames of five years or more.
As with The Discipline of Market Leaders, Mr. Treacy looks at a few successful companies that have met his targets in the past (Johnson Controls, Mohawk Industries, Paychex, Biomet, Oshkosh Truck and Dell) and extrapolates what they did into a few simple lessons. The strategic lessons are:
1) Spread your risk by pursuing many growth initiatives
2) Take on small growth challenges so you don't become overwhelmed by the size of the task
3) Use a variety of strategies involving organic growth and acquisitions, as appropriate to grow
4) Be committed to providing superior value
5) Develop your management to handle growth opportunities before tackling more opportunities
6) Make growth a central focus of your management processes (using Balanced Scorecard-like measures).
To implement these six strategic perspectives, he counsels that each company should focus on five management disciplines:
a) Reduce customer turnover
b) Take business from competitors
c) Emphasize those areas in your industry that are growing fastest
d) Invade adjacent markets where you can bring important advantages to bear
e) Invest in new lines of business
The heart of the book is devoted to these five disciplines. Each receives a chapter that talks about the difficulties involved and how to over come those difficulties. I thought that the book's advice was most practical and interesting when it talked about the disciplines.
If I look back to when I was first learning about strategy, I think that every article or book I read talked about the last four disciplines . . . but omitted the first. In fact, the best chapter in the book is on the first discipline, especially in debunking those who advocate that you can build loyalty in customers with any method other than making your value proposition be terrific.
Another excellent part of the book comes in the case history of First Data which used these disciplines to improve its situation. Presumably First Data was a consulting client of Mr. Treacy's.
I was pleased to see that Mr. Treacy noted that many of his champion growers frequently changed business models in positive ways (especially Paychex and Dell). Double-Digit Growth is rare book in noting and describing such management excellence. In doing so, the book's only weaknesses were that few examples of continuing business model innovation were included and not enough attention was paid to describing the key elements of this new and important management discipline. I hope in future books that Mr. Treacy will place more emphasis on the best practices in this area.
The book's perspective is that of the strategist and marketing executive, so those who come from other perspectives will probably gain the most from this book. Double-Digit Growth will give other executives a chance to understand what they should be focusing on as they meld their talents together with others in the organization.
If you are, however, a veteran strategist or marketing executive, you may get little benefit except from reading whichever company cases in the book (listed above) you have not read or heard about before.
As I finished the book, I wondered about how companies can make it more exciting to work on customer retention. Perhaps Raving Fans! has it right in that regard.
If you are not in a high growth market, though, I would still rate your chances of double-digit growth in revenues or gross profits to be slim . . . unless you become a master of continuing business model innovation.
Hits the nail on the head.......2004-01-01
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Breakout Strategy: Meeting the Challenge of Double-Digit Growth
Sydney Finkelstein , Charles Harvey , and Thomas Lawton Manufacturer: McGraw-Hill ProductGroup: Book Binding: Hardcover Similar Items:
ASIN: 0071452311 |
Book Description
Companies that purposefully set out to excel are remarkably few and far between.
The number of those who have a strong, well-thought out strategy for success are even fewer.
Based on five years of research and field-testing, Breakout Strategy gives you a “fast track” strategic vision that can push your company to incredible new rates of growth and expansion. Strategy and leadership experts Sydney Finkelstein, Charles Harvey, and Thomas Lawton show how to craft a strategy that fits your business, whether you're a small start-up or an established national or international company. They also give you the tools to adapt that strategy as you grow and expand. Their system features five key initiatives:
Breakout Strategy puts these initiatives in context by examining how diverse companies achieved breakout growth, including jetBlue, Harley Davidson, and Starbucks. It also sheds light on how a poor strategy can topple a once-successful company off the pedestal of market dominance, such as Krispy Kreme's overly ambitious expansion strategy that stretched the company and the brand too thin.
With the systematic approach in Breakout Strategy, you'll be able to travel the fast track to market triumph, leaving your competitors struggling to catch up.
Customer Reviews:
Break out and buy this book!.......2007-01-13
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Covered Call Writing Demystified: Double-Digit Returns on Stocks in a Slower Growth Market for the Conservative Investor
Paul D. Kadavy Manufacturer: Arrow Pubns ProductGroup: Book Binding: Plastic Comb Similar Items:
ASIN: 0971551405 |
Book Description
"COVERED CALL WRITING DEMYSTIFIED" is a timely and profitable tutorial investment program written as a novel, primarily for investors who have some knowledge of stock market investing but are new to covered call writing. It is the first work on this subject to simplify, fully explain, and instruct investors on how to use covered call option writing on common stocks. It may offer one of the best opportunities to achieve double-digit investment returns in the slow growth or no growth stock market expected by many experts in the future. This strategy works best in such a market environment. The investment approach of writing covered call options on stocks, a more conservative investment strategy than just owning stocks alone, has been available for decades. Until now, however, it has mostly been unknown or misunderstood by many investors.Why is "COVERED CALL WRITING DEMYSTIFIED" needed? Many nationally recognized investment experts believe that the U.S. stock market in the future will most certainly produce significantly lower returns than the high returns of the past for many years to come. Some noteworthy examples:
* "The long-term prospects for equities in general is far from exciting." - Warren E. Buffett, The Chairman's Letter, Berkshire Hathaway, Inc. 2000 Annual Report, Page 3. "If you own equities, over the next twenty or thirty years you'll get a reasonable return maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment." - Interview with Warren Buffett by Maria Bartiromo of CNBC TV; May 3, 2003
* "Over the next century you should expect your share prices to average 6% (return) a year. Over the next five years, ten years, I think you'll be lucky to come out even on share prices." - Sir John Templeton, pioneer in the mutual fund industry, Business Center, CNBC TV Interview; October 1, 2001
* "The Dow has gone absolutely nowhere for three, coming on four years now. I think this will last maybe for another ten years." - John Bollinger, noted technical analyst and creator of the "Bollinger Bands," CNBC TV Interview; October 29, 2001
"It's wise to have realistic expectations on the overall returns you can expect in the stock market, which over time should clock in at about 6% to 7%. The days of double-digit annual returns are probably over for some time to come." - Suze Orman, "The Financial Connection."
"COVERED CALL WRITING DEMYSTIFIED" is unique because:
(1) A detailed investment program is outlined for personal implementation to assist investors in achieving consistent double-digit returns utilizing covered call writing on common stocks. This investment strategy is most effective in a slow growth or no growth stock market, as is projected in the future by so many investment experts.
(2) The entire subject matter is centered on a focused area of standardized options...covered call writing on stocks an investor owns or acquires in the future.
(3) A complete education on the subject is provided.
(4) Unlike other books about options, it is easy to understand by any investor. The book is written as a novel, which increases reader interest and ease of comprehension.
(5) Numerous easy-to-use Microsoft® Excel templates on a CD/ROM for PC use as well as manual worksheets are provided with the book to assist in making specific investment decisions regarding which covered calls to write on stocks, to effectively track results, and for other planning purposes.
(6) Practical application exercises are included at the end of the chapters to personalize the information provided and assist with profitable planning and execution.
Customer Reviews:
Not worth the money.......2004-01-11
waste money and time.......2003-09-13
Low risk strategy only with the right timing tools.......2003-09-07
Too much emphasis on Return, not enough on Risk.......2003-09-02
For example, it is very easy to view a $1 premium on a $20 stock as a +5% return when the transaction is initiated. But if the stock declines to $15 upon expiration, the total return is actually -$4 (-20%), which would wipe out several months of gains from other successful covered writes. This outcome is a very real possibility, even though in this book there is little discussion of this outcome or what to do about it, or, better yet, how to prevent it.
Another good book on Covered Calls is "New Insights on Covered Call Writing", which more thoroughly explains the risks involved with a covered write investment program.
As with any investment strategy, it is best to (1) learn as much as possible, (2) make sure both reward and risk are understood, and (3) practice on paper before jumping in with real funds. Toward this end, I found both books very helpful.
DON'T MISS THIS IF YOU ARE NEW TO CALL WRITING.......2003-08-13
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Value Innovation Portfolio Management: Achieving Double-digit Growth Through Customer Value
Sheila Mello , Wayne Mackey , Ronald Lasser , and Richard Tait Manufacturer: J. Ross Publishing ProductGroup: Book Binding: Hardcover Similar Items:
ASIN: 1932159576 |
Book Description
Value Innovation Portfolio Management offers a new, proven approach to product portfolio management and innovation that uses customer value as the key predictor of success. It illustrates how shifting the portfolio management metric from financials to customer value helps companies identify innovations that delight end users and drive double-digit growth.
KEY FEATURES
* Introduces a new, proven approach to creating a valuable product portfolio based on high customer value, tight business strategy alignment, and optimal investment intensity
* Reveals how to exploit unfulfilled market niches by shifting to customer value as a top portfolio criterion
* Tackles tough questions about what products to launch, where to invest/divest, and how to avoid costly product failures
* Includes real case studies showing the merits of transforming the business drivers of your product portfolio to a customer value approach
* Provides strategic vision and a blueprint for measuring customer value and using it to reinvent your portfolio management process
* Offers free downloadable articles on collecting the voice of the customer and creating a framework for measuring innovation -- available from the Web Added Value Download Resource Center
Customer Reviews:
How to deliver innovative products and services more consistently...and more profitably.......2007-08-08
Practical Guide to Realizing Customer Value.......2007-05-17
If you only read one product management book, read this one.......2007-01-10
Success via customer centric portfolio management.......2007-01-04
An Important Extension from the first book.......2006-10-27
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2004 surplus gain should hit double-digits; hurricanes, tsunami losses offset by strong underwriting results, stock market surge.(Another Perspective): ... & Casualty-Risk & Benefits Management
Frederick S. Towsend Manufacturer: The National Underwriter Company ProductGroup: Book Binding: Digital ASIN: B0009747VM Release Date: 2006-07-14 |
Book Description
This digital document is an article from National Underwriter Property & Casualty-Risk & Benefits Management, published by The National Underwriter Company on February 28, 2005. The length of the article is 609 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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Acxiom Corp. Reports Double-Digit Growth.: An article from: Arkansas Business
Jon Parham Manufacturer: Journal Publishing, Inc. ProductGroup: Book Binding: Digital ASIN: B0008IWYI0 Release Date: 2005-06-01 |
Book Description
This digital document is an article from Arkansas Business, published by Journal Publishing, Inc. on May 8, 2000. The length of the article is 349 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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AKZO NOBEL'S PHARMA ON COURSE FOR DOUBLE-DIGIT GROWTH.(financial outlook and management strategies for Pharma Group and other Akzo Nobel busines units)(Company ... An article from: Biotech Financial Reports
Manufacturer: Worldwide Videotex ProductGroup: Book Binding: Digital ASIN: B0008IARN4 Release Date: 2005-07-28 |
Book Description
This digital document is an article from Biotech Financial Reports, published by Worldwide Videotex on November 1, 2001. The length of the article is 2037 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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Business Wire : MediCor Ltd. Reports Second Consecutive Quarter of Double-Digit Growth.
Manufacturer: Business Wire ProductGroup: Book Binding: Digital ASIN: B0007UUV0C Release Date: 2005-03-11 |
Book Description
Word count: 729.
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Business Wire : Paul Hastings Posts Strong 2004 Results with Double Digit Revenue and Profit Growth.
Manufacturer: Business Wire ProductGroup: Book Binding: Digital ASIN: B0007UV1GA Release Date: 2005-03-11 |
Book Description
Word count: 339.
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Business Wire : U.S. Wireless Market to Reach $212.5 Billion by 2008 According to TIA Study; Increase in 2004 Marks a Return to Double-Digit Growth.
Manufacturer: Business Wire ProductGroup: Book Binding: Digital ASIN: B0007UUE54 Release Date: 2005-03-11 |
Book Description
Word count: 732.Books:
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