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Fred Crawford - The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything

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Fred Crawford The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything
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The Undiscovered Consumer . . .and the Mistake of Universal Excellence
What do customers really want? And how can companies best serve them? Fred Crawford and Ryan Mathews set off on what they describe as an expedition into the commercial wilderness to find the answers. What they discovered was a new consumer -- one whom very few companies understand, much less manufacture products for or sell products or services to. These consumers are desperately searching for values, a scarce resource in our rapidly changing and challenging world. And increasingly they are turning to business to reaffirm these values. As one consumer put it: I can find value everywhere but cant find values anywhere.
Crawford and Mathewss initial inquiries eventually grew into a major research study involving more than 10,000 consumers, interviews with executives from scores of leading companies around the world, and dozens of international client engagements. Their conclusion: Most companies priding themselves on how well they know their customers arent really listening to them at all. Consumers are fed up with all the fuss about world-class performance and excellence. What they are aggressively demanding is recognition, respect, trust, fairness, and honesty.
Believing that they are still in a position to dictate the terms of commercial engagement, businesses have bought into the myth of excellence -- the clearly false and destructive theory that a company ought to be great at everything it does, that is, all the components of every commercial transaction: price, product, access, experience, and service. This is always a mistake because the predictable outcome [is] that the company ends up world-class at nothing; not well-differentiated and therefore not thought of by consumers at the moment of need.
Instead, Crawford and Mathews suggest that companies engage in Consumer Relevancy, a strategy of dominating in one element of a transaction, differentiating on a second, and being at industry par (i.e., average) on the remaining three. Its not necessary for businesses to equally invest time and money on all five attributes, and their customers dont want them to. Imagine the confusion if Tiffany & Co. started offering deep discounts on diamonds and McDonalds began selling free-range chicken and tofu.
The Myth of Excellence provides a blueprint for companies seeking to offer values-based products and services and shows how to realize the commercial opportunities that exist just beyond their current grasp -- opportunities to reduce operating costs, boost bottom-line profitability, and, most important, begin to engage in a meaningful dialogue with customers.
From the Hardcover edition.

Fred Crawford: author's other books


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Table of Contents For Chris and Luke I love you guyssorry Ive missed so - photo 1

Table of Contents For Chris and Luke I love you guyssorry Ive missed so - photo 2

Table of Contents

For Chris and Luke (I love you guyssorry Ive missed so manyevenings) and our familiesFred, Margaret, Ron, Debbie, Ray,Ryan, John, Jeanette, Johnnie, and Michael.

Fred Crawford

For Sierra and Gabriel, who grew into the two most amazingpeople its been my pleasure to meet, mostly when I wasnt smartenough to be watching.

Ryan Mathews

Praise for THE Myth OF Excellence

A startlingly sensible analysis.

MiamiHerald

This crisply written book provides an insight into consumer behavior that will prove of great use to business leaders.

PittsburghGazette

Tired of business drivel? If you are ready to step beyond platitudinous mission statements and strategies cooked up in distant boardrooms that have no connection to the trenches where business battles are actually being fought, this is the book for you. It is grounded, readable, and honestjust like your business should be.

PACO UNDERHILL, Why We Buy: The Science of Shopping

TheMyth of Excellence stands apart from the deluge of business books on the market with its candor and readability. For the brand-marketing executive, the book provides some especially revealing insights into underlying consumer values. Even more refreshing is the authors approach to imparting business lessons through real research and first-hand case studies.

C. MANLY MOLPUS, Chairman and CEO, The Grocery Manufacturers of America

Everyone in business thinks they really know their customers and what they want. But, in The Myth of Excellence, Fred Crawford and Ryan Mathews have given me new and useful insights into the startling changes taking place before our very eyes. When they tell us, for example, that human values are the contemporary currency of commerce, they are not just offering another new business platitude but rather a new lens through which to view the consumera lens very few people understand. The Myth of Excellence is both a big idea and a blueprint for action. A true must-read.

MICHAEL BURANDT, President, North American Consumer Products, Georgia-Pacific Corporation

Todays customers are leading a revolution against business as usual: They are demanding that companies recognize them as individuals and conduct business on their terms. In The Myth of Excellence, Crawford and Mathews provide proven strategies for meeting the demands of todays empowered customers, who are crying out to be treated with respect, dignity, and courtesy.

THOMAS M. SIEBEL, Chairman and CEO, Siebel Systems, Inc.

Acknowledgments

WE WOULD BOTH LIKE to thank our publishing team: agent extraordinaire Raphael Sagalyn of The Sagalyn Agency, who gave us our first, sometimes hard, lessons in publishing; John Mahaney, the spiritual leader of the Crown Publishing Group, whose editorial guidance helped shape both our thinking and final product; Jonathan Slonim, editorial assistant, for his liaison work on our behalf; and Will Weisser, Debbie Koenig, and the rest of the Crown promotional and advertising team.

Special recognition needs to be given to three individuals, each of whom placed an indelible stamp on this project. Without their efforts this book literally would not have been possible. Marcella Mosier brought a remarkable and tireless faith to this efforteven when our direction was unclearand contributed content, provided insight, delivered against project goals, and in the process helped shape what became Consumer Relevancy. Priscilla Donegan contributed her insights, thoughts, and discipline; forced this manuscript into readability through tireless editing; made us act like adults; broke the ties; and donated hours to this project nobody should have given or been asked for. Finally, to Rebecca Sue River, thanks for everythingand we do mean everything.

A special mention also goes to Susan Buddenbaum, whose insights and early contributions provided the momentum for what today has become Consumer Relevancy. And thanks also to Bob Stanojev, who put us together in the first place. Other important early contributors included Bernie Thiel and Syed Hoda.

The Myth of Excellence simply wouldnt have been written without the cooperation and support of several individuals and companies. Feargal Quinn charmed himself to the top of this list by providing great access into his own company, providing invitations into other companies, and once again proving himself to be one of the best hosts and friends to be found anywhere in this world. We recommend that any reader finding herself or himself in Ireland stop by to visit Superquinn, and please buy something while youre there.

Thanks also go to our other Irish friends: Patrick Campbell, Donal OBrien, and Paul OToole of Campbell-Bewley Group, and Derek McDonagh and Edward Stephenson of Jurys Doyle Hotel Group. Staying on the international note, special thanks to Bill Keon and the entire Pueblo family in San Juan.

Returning stateside we want to thank: Catherine Baum of Stanley Martin; Janet Kraus at Circles; Claudia Kotchka at Tremor; Craig Schnuck, his family, and the staff at Schnuck Markets; Ross Roeder and the staff at Smart & Final; Ron Pearson and his staff at Hy-Vee; John Gottfried, Ned Visser, and Andrew Arons at Gourmet Garage; Mike Himes and the other good vibrations at Record Time; Bob Carpenter and the team at Dollar General.

Five other companies assisted us in our early work, helping Consumer Relevancy take on its initial shape: Dominos Pizza, Ames, Eddie Bauer, Southwest Airlines, and Midwest Express.

Special thanks also go out to Wesley Wright, Jimmy Wright, Roger Kidd, and the rest of the team at Diversified Retail Solutions. Thanks also to Don Dufek for his efforts in initially helping shape Consumer Relevancy. The following companies and associations were kind enough to give us support, encouragement, resources, and, most important, platforms: Georgia-Pacific, Procter & Gamble, the Grocery Manufacturers of America, Kellogg, Unilever Bestfoods, C&A, British American Tobacco, and Royal Dutch Ahold.

Fred extends thanks to the Cap Gemini Ernst & Young family for putting up with all of the trials and tribulations of this project. To Terry Ozan, Dale Wartluft, Bob McIlhattan, Berend Brix, and Geoff Unwin, thanks very much for your support. Also, a special thanks to Stephanie Shern at Ernst & Young LLP, who got me focused on this in the first place. To Doug Dickson and Stella Goulet, thanks for all your hard work and support. To Charlie Gottdiener, who took the concept of Consumer Relevancy and helped shape it into something tangible, thanks a lot. To all of the CPRD team around the globe, thanks for all your hard work and dedication to our practice and to the concept of Consumer Relevancy. And while we said it together, to Rebecca and Marcie, an encore thanks!

To Bake, Burke, Bow, MTV, Spiro, Heath, and the crew, rock on.

And again to the home team, Chris and Luke, who make it all worthwhile.

Ryan would also like to thank the FirstMatter team: Watts Wacker, futurings cosmic cowboy and my comrade-in-arms, for the sage publishing advice, creative counsel, patience, and friendship; Mary DeVito, whose great organizational skills, logistical expertise, and attention to large and small details both professional and personal were invaluable in the completion of this manuscript; Darrell Stewart, the special librarian with the big heart and a constant friend through several vocational incarnations; and last but not least Michael Strother, who managed to keep the hardware, software, and wetware running in sync, no small task given my admitted technological limitations.

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