The Dysfunctional Difference
With over 40 years working in marketing and sales with national and regional companies, my observations blend into certain realities.
A lot of companies are dysfunctional.
They were dysfunctional then and years later, they still are.
A few do almost everything right.
There are profound differences in how these two types of companies go about creating value for their customers and provide positive customer experiences.
These differences determine how different companies generate economic value — by first creating a valued customer experience. But for all the words written about customer experience, so few seem yet to get the message.
A massive study by the Conference Board confirmed that only 5 percent of companies have achieved sustained inflation-adjusted growth of more than 6 percent. All the other companies have stalled out.
Recent studies confirm similar patterns:
Profit from the Core (Chris Zook and James Allen) — 13 percent of 1,854 companies achieved sustained growth.
Creative Destruction (Richard Foster and Sarah Kaplan) — 16 percent of 1,008 companies achieved sustained growth.
Good to Great (Jim Collins) — 9 percent of 1,435 companies achieved sustained growth.
The numbers tell the sad truth.
It is all too easy to succumb to a kind of corporate hysteria in which the illusion of action wrapped in a great deal of rhetoric replaces effective action.
“When in danger or in doubt, run in circles, leap and shout.”We allow corporate infighting. Alternate approaches are pitted against each other in an “either-or” scenario in which there can be no winners.
Yet worse … we apply incremental band-aid solutions that address symptoms instead of causes. The problems persist, yet we expect better results.
Such common actions can put any company definitively in second or third place or in no place at all.