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Momentum Effect, The: How to Ignite Exceptional Growth

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  • Copyright 2008
  • Pages: 352
  • Edition: 1st
  • eBook (Watermarked)
  • ISBN-10: 0-13-714518-7
  • ISBN-13: 978-0-13-714518-8

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

Sample Content

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


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