Oct 16 2008
MOMENTUM-DRIVEN BUSINESSES . . .
Do you work for a
bunch of pushers?
Well, it looks like another big-time management theory has just bumped itself over the horizon by virtue of a new book, The Momentum Effect: How to Ignite Exceptional Growth, by J.C.Larreche.
Larreche is an INSEAD Graduate Business School Marketing Professor. He categorizes businesses as “Pushers,” or “Plodders,” or “Pioneers.”
- Pushers push their businesses hard traditionally seeking to drive sales through aggressive marketing increases.
- Plodders are safety zone status-quo-invested businesses that maintain constant marketing-to-sales ratios.
- Pioneers cut traditional marketing expenses to explore, discover, and cultivate other more creative and more effective avenues of growth, reducing advertising-to-sales ratios despite overall expense increases
The author contends that research he’s done uses Dow Jones Index markers and proves the revenue growth of Pioneer businesses measured over two decades ends up 93% better (almost twice as dramatic an increease) over Pusher businesses that spent considerably more in traditional “spend money to make money” marketing mindsets, while Pioneers and Pushers, both, left the Plodders in the dust!
Okay, so how does this translate for small business? Slow down the push to be like everyone else in the market, and step up some new industry and community leadership approaches that will set you apart from the rest of the pack.
If it feels like too big of a risk to suddenly start trying to do things differently, that’s a signal from the secure little competitive corner of your brain that you should do it!
Wasn’t it your Grandaddy that told you something like “Nothing ventured, nothing . . .”?
Remember that Momentum Leaders are, as Professor Larreche exclaims, “not lucky — they are smart.” He says that managers often talk about “riding the wave,” but that Momentum Leaders aren’t so passive. They believe you must first build your wave, then ride it. halalpiar
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