“How Companies Win: Profiting From Demand-Driven Business Models …” by Rick Kash and David Calhoun (Harper Business, $26.99).
“Demand is what customers possess in terms of needs and desires — emotional, psychological, and physical — they want satisfied, and have the purchasing power to satisfy.” Traditional approaches to estimating demand, like demographic and behavioral analysis, use “what was” to predict who will buy and what they buy. These approaches assume that consumers with similar profiles will continue making purchase decisions the same way they always have. Yet, duplicating what created your past and present won’t guarantee future performance.
What will? You must look at the ever-shifting why behind purchase decisions to anticipate and create demand. The authors believe that companies that build relationships around their customers will be able to identify both latent and emerging demand — and turn recognition into profits. Apple is a prime example. Amazon is another.
What do these companies have in common? 1. A delivery system that incorporates the Web. Many Apple products rely on downloads (music and apps) to enhance customer experience. Amazon used the Web to eliminate bricks and mortar. 2. A system that hunts for the next profit opportunity. Both Apple and Amazon have become middlemen for the products of others, which expands their ability to determine “what’s next.” 3. This system creates a demand chain of manufacturers, retailers and media partners that shares the same objectives. An effective demand chain shortens the drawing board to marketplace time.
The authors cite McDonald’s shift to a demand-driven mentality that increased profitability. In the 1990’s, it strayed from its founder’s focus on “quality, service, cleanliness and value” by opening too many stores too fast. Its management confronted three major challenges: overexpansion, declining customer satisfaction and cultural awareness of healthy eating.
“Better not bigger” became management’s mantra. It introduced a customer satisfaction scoring system that rates each restaurant on five keys areas — and took steps to improve low-scoring franchises and company stores. It introduced healthier food options and took advantage of America’s love affair with coffee to introduce value-priced coffee drinks.
Consumers change their why constantly. A demand-based business model forces a business to stay a step ahead.
“The Top 10 Distinctions between Winners and Whiners” by Keith Cameron Smith (John Wiley & Sons, $14.95).
Letterman has his humorous Top 10; Cameron has his thought-provoking 10 distinctions. Let’s count them down:
10. “Winners take responsibility. Whiners play the victim.” When things don’t go as planned, winners don’t worry; they man up. Whiners want to stay low profile; by staying under the radar, they let others make decisions.
9. “Winners can have what they want. Whiners want what they cannot have.” There’s a price to pay for success. Work hard and play hard and invest in lifelong learning. Don’t “expect;” no one is entitled to success by simply showing up.
8. “Winners find a way. Whiners find an excuse.” Winners adjust their approaches and actions to overcome obstacles. Whiners look at life’s curveballs and believe they’ll strike out. Then they play “Blame Game;” it’s never their fault.
7. “Winners brighten a room by entering. Whiners brighten a room by leaving.” Positive attitudes energize people. Doom and gloom conversations always lead to dead ends.
6. “Winners listen twice as much as they talk. Whiners talk twice as much as they listen.” You can’t learn when you’re talking.
5. “Winners enjoy life’s journeys. Whiners put their joy in destinations.” Before you get where you’re going, you should think ahead. Every next step propels growth.
4. “Winners build friendships. Whiners destroy friendships.” Understanding the perspectives and opinions of others leads to “aha” moments. Arguing points makes it difficult to overcome differences.
3. “Winners think big. Whiners think small.” When choosing to think big, you see possibilities and constantly push the boundaries of your comfort zone.
2. “Winners are focus-minded. Whiners are scatter-brained.” Manage your priorities; if you don’t, you’ll accomplish little by trying to do too much.
1. “Winners create positive meanings. Whiners create negative meanings.” There’s always an upside when you’re upside down. Find the upside and you’ll find a way out of difficult situations quickly.
Whiners become winners when they decide to make things happen, rather than letting them happen.
Jim Pawlak is a nationally syndicated book reviewer.
