In this issue of “ Make A Difference” , we reproduced two articles by two of the speakers, Mr DanielBurrus and Ms Michelle Lamb. We e would also like to share with our readers snippets of wisdomfrom IAC Keynote Speaker, , Gen. Colin L. Powell, USA (Ret.) and Mr George Whalin.Powell’s PrinciplesCre<strong>at</strong>ing and Sustaining aCompetitive AdvantageDaniel BurrusFounder and CEO of Burrus ResearchOne of the most admired people in America today, GeneralPowell shared with the audience his insights on leadershipand described his vision for tomorrow.“ Being responsible sometimes means pissing people off.”“ Gre<strong>at</strong> leaders are almost gre<strong>at</strong> simplifiers, who can cutthrough argument, deb<strong>at</strong>e and doubt, to offer a solution<strong>ever</strong>ybody can understand.”“ You don’t know wh<strong>at</strong> you can get away with until you try.”“ Perpetual optimism is a force multiplier.”“ Leadership is solving problems. The day soldiers stop bringing you their problems isthe day you have stopped leading them. They have either lost confidence th<strong>at</strong> youcan help or concluded th<strong>at</strong> you do not care. Either case is a failure of leadership.”IAC Keynote SpeakerGen. Colin L. Powell , USA (Ret.)“ Keep looking below surface appearances. Don’t shrink fromdoing so just because you might not like wh<strong>at</strong> you find.”“ Organis<strong>at</strong>ion doesn’t really accomplish anything. Plansdon’t accomplish anything either. Theories of managementdon’t much m<strong>at</strong>ter. Endeavours succeed or fail becauseof the people involved. Only by <strong>at</strong>tracting the best peoplewill you accomplish gre<strong>at</strong> deeds.”“ Organis<strong>at</strong>ion charts and hence titles count for next tonothing.”“ Don’t be buffaloed by experts and elites. Experts oftenpossess more d<strong>at</strong>a than judgement. Elites can become soinbred th<strong>at</strong> they produce hemophiliacs who bleed to de<strong>at</strong>has soon as they are nicked by the world.”“ N<strong>ever</strong> let your ego get so close to your position th<strong>at</strong> whenyour position goes, your ego goes with it.”“ Fit no stereotypes. Don’t chase the l<strong>at</strong>est managementfads. The situ<strong>at</strong>ion dict<strong>at</strong>es which approach bestaccomplishes the team’s mission.”Powell’s rules for picking people:“ Look for intelligence and judgement and, most critically,a capacity to anticip<strong>at</strong>e, to see around corners. Also lookfor loyalty, integrity, a high energy drive, a balanced egoand the drive to get things done.”“ Don’t be afraid to challenge the pros, even in their ownbackyard.”“ N<strong>ever</strong> neglect details. When <strong>ever</strong>yone’s mind is dulled ordistracted the leader must be doubly vigilant.”Part I: “ Use the formula P=40 to 70, in which P stands forthe probability of success and the numbers indic<strong>at</strong>e thepercentage of inform<strong>at</strong>ion acquired.”Part II: “ Once the inform<strong>at</strong>ion is in the 40 to 70 range, gowith your gut.”“ The commander in the field is always right and the rearechelon is wrong, unless proved otherwise.”There are many ways to compete and yet mostcompanies focus their str<strong>at</strong>egies on only a few.This narrow perspective limits a company’sability to cre<strong>at</strong>e solid competitive advantages andsustain them over time. To be consistentlycompetitive, companies need str<strong>at</strong>egies th<strong>at</strong> encompass techniques for<strong>ever</strong>ything from price, time and value to technology, image and service.Price-Based CompetitionThe most popular competitive technique is to focus on price. Having the lowestprice is a gre<strong>at</strong> advantage, but lowest price also means low margins and highvolumes in order to stay profitable. Price-based competition is a favourite techniqueof giants like JetBlue Airlines, Wal-Mart, Dell Computers and Amazon.com. Price,how<strong>ever</strong>, isn’t their only str<strong>at</strong>egy. Let’s look <strong>at</strong> JetBlue as an example of a companyth<strong>at</strong> executes multiple competitive str<strong>at</strong>egies. In 2006, JetBlue was a profitablecompany, with their stock surging 156% since going public in April 2002. Inaddition to low prices, JetBlue lowered their oper<strong>at</strong>ing costs by standardising toone type of jet, which dram<strong>at</strong>ically lowered training and maintenance costs.Their technology enables over 700 reserv<strong>at</strong>ion agents to work from their homesin Salt Lake City, saving both time and money. Nearly three in four tickets arebooked through JetBlue’s own website, saving commission costs and othertravel agent fees. The airline further differenti<strong>at</strong>es itself from competitors byproviding comfortable se<strong>at</strong>s and movies th<strong>at</strong> add value. JetBlue continues toinnov<strong>at</strong>e by being the <strong>first</strong> to allow pilots to carry laptops th<strong>at</strong> autom<strong>at</strong>ically upd<strong>at</strong>eflight manuals. The best companies n<strong>ever</strong> focus on price alone. They combinemultiple str<strong>at</strong>egies to cre<strong>at</strong>e a lasting competitive advantage and continue toinnov<strong>at</strong>e using technology th<strong>at</strong> raises the bar for <strong>ever</strong>y str<strong>at</strong>egy they employ.Wh<strong>at</strong>’s the Difference Between Competers and Innov<strong>at</strong>ors?Competers copy others.Competers are locked into set p<strong>at</strong>terns.Competers believe the future will take care of itself.Competers see scientific and technological developmentsas thre<strong>at</strong>s to their st<strong>at</strong>us quo.Competers collect massive amounts of raw d<strong>at</strong>a.Competers react to trends.Competers consider planning a necessary evil.Competers dread change and resist it.Competers avoid being different.Competers control and direct their people.Competers complain their people lack productivity.Competers use technology to save money.Competers favour predictable behavior.Competers believe problems impede progress.Don’t Imit<strong>at</strong>e – Innov<strong>at</strong>eCompetition will only intensify. In today’s marketplace, it is more important than<strong>ever</strong> to focus on innov<strong>at</strong>ion as you seek to differenti<strong>at</strong>e yourself from thecompetition. When competitive pressure increases, it is n<strong>at</strong>ural to focus on wh<strong>at</strong>the competition is doing. Although keeping track of them is a good practice, toomany organis<strong>at</strong>ions w<strong>at</strong>ch their competitors <strong>at</strong> the expense of developing theirown innov<strong>at</strong>ions, and eventually discover there’s a price to pay.The Hidden Cost of CompetitionCompanies who spend their time studying the competition r<strong>at</strong>her than lookinginternally put themselves <strong>at</strong> risk in a number of ways:1. They lose their identity by copying each other’s products, servicesand methods, making it hard for customers and employees todistinguish one from the others.2. Individuals and firms struggle with each other and lose sight of theirown customers and markets.3. Potential money-saving innov<strong>at</strong>ions are overlooked due to excessiveconcern with minor cost-reduction measures.4. Long-term profits, problems and opportunities are missed when alleyes are on short-term sales and profits.5. Resources th<strong>at</strong> could be available for innov<strong>at</strong>ion are reduced in pursuitof the competition.6. Companies become complacent, believing they are secure if theymaintain market share.Innov<strong>at</strong>ors look for better ways to think and act.Innov<strong>at</strong>ors cultiv<strong>at</strong>e a cre<strong>at</strong>ive mind set.Innov<strong>at</strong>ors focus on future goals and how to meet them.Innov<strong>at</strong>ors apply new technologies for new opportunities.Innov<strong>at</strong>ors transl<strong>at</strong>e raw d<strong>at</strong>a into useful action plans.Innov<strong>at</strong>ors profit from trends.Innov<strong>at</strong>ors str<strong>at</strong>egically build change into the plan.Innov<strong>at</strong>ors adapt and try to master change.Innov<strong>at</strong>ors maximise their differential advantage.Innov<strong>at</strong>ors empower their people for positive action.Innov<strong>at</strong>ors help their people be more productive.Innov<strong>at</strong>ors integr<strong>at</strong>e str<strong>at</strong>egy, technology and people.Innov<strong>at</strong>ors encourage cre<strong>at</strong>ivity in their people.Innov<strong>at</strong>ors turn problems into opportunities.1011
Michelle LambFounder and Chairman of MarketingDirections, Inc.Why I Care About TrendIt may surprise you to learn th<strong>at</strong> trendforecasting for home décor hasn’t been aroundvery long, even though trend forecasting inapparel has been used for years. Just 25 yearsago, in the early 1980s, a few forward-lookingmerchants began to apply a trend perspectiveto home fashions products.At <strong>first</strong> not <strong>ever</strong>yone in home fashions was on-board with the concept of trendforecasting. Lots of buyers, designers and retailers didn’t focus on trends anddidn’t think they needed to change. They believed th<strong>at</strong> best-selling homefashions selections were all about cre<strong>at</strong>ing good/better/best options th<strong>at</strong>showcased different fe<strong>at</strong>ures and price points – and th<strong>at</strong> success withconsumers was based on a combin<strong>at</strong>ion of delivering fabulous service andproviding access to exclusive trade-only products.It didn’t take long for the benefits of a trend-focused point of view to becomeapparent to both consumers and retailers. Consumers found a new source ofenergy and excitement when they tapped into home fashions selectionsdesigned with trend in mind – and they became more confident th<strong>at</strong> theirhome décor conveyed an up-to-d<strong>at</strong>e sensibility.Retailers began to see th<strong>at</strong> home fashions selections designed with trend as astarting point provided a competitive advantage th<strong>at</strong> transl<strong>at</strong>ed into gre<strong>at</strong>ersales and profits. They realised the importance of reaching beyond personaltaste to focus on trend-right assortments. Within 15 years, almost <strong>ever</strong>yoneunderstood the power of trend and was using it to their advantage.At the same time, good design began to creep into <strong>ever</strong>yday productassortments. Famous name designers or staff design teams found anincreasingly receptive audience for well-coloured and well-designed products.These innov<strong>at</strong>ive p<strong>at</strong>terns and designs began to appear in shelter and apparelmagazines, alongside colour fe<strong>at</strong>ures th<strong>at</strong> pulled it all together for consumers.With so much inform<strong>at</strong>ion so easily accessible, consumers’ taste levels beganto rise – and they have n<strong>ever</strong> gone back.Now consumers demand good design <strong>at</strong> <strong>ever</strong>y level. They are asking for betterdesign and faster change. The life span of a trend, which was about 7 years inthe early 1980s, has compressed repe<strong>at</strong>edly. Now a typical trend is just aboutthree years and is expected to drop to two years by 2010.Today, consumers have a heightened sensitivity to design. They demand gooddesign <strong>at</strong> <strong>ever</strong>y price-point level, and there is an acceler<strong>at</strong>ing time frame forcolour, texture and design trends. This makes it more important than <strong>ever</strong> formanufacturers and retailers to understand and apply trend inform<strong>at</strong>ion to productdesign and how they work with consumers.We’re all winners in this growing focus on trend. Consumers benefit withbetter décor in their homes and the perfect combin<strong>at</strong>ion of design and colour.Retailers, fabric<strong>at</strong>ors and manufacturers can count on trend for increased salesand profits.The Gallery Advantage - Become a <strong>Hunter</strong><strong>Douglas</strong> Window Fashions Gallery TM Dealer“Before the Gallery, we were doing <strong>ever</strong>ything about 80 percent right; nowit’s 95 percent. The variety of Gallery programs is like a chessboard. There arelots of individual pieces, and I can play with them in wh<strong>at</strong><strong>ever</strong> combin<strong>at</strong>ionworks best.” - Basic Blinds - USBenefits of Becoming a <strong>Hunter</strong> <strong>Douglas</strong> Gallery TM Dealer• Increased sales, profits and consumer awareness• Unique and proven display environment• Differenti<strong>at</strong>es your business from the competition• Training, training and more training• Receive the benefits of HD advertising• Exclusive collection of specialty products available only to <strong>Hunter</strong> <strong>Douglas</strong>Window Fashions Gallery• Customised marketing programmes & added benefits th<strong>at</strong> support yourbusiness• Grow with an Intern<strong>at</strong>ional Brand• Network with other worldwide <strong>Hunter</strong> <strong>Douglas</strong> Window Fashions Gallery dealersAs a <strong>Hunter</strong> <strong>Douglas</strong> Window Fashions Gallery TM Dealer, we have put in placea series of programmes to partner with our dealers to build their business andbring more value to our customers. Programmes such as:• Product training – builds <strong>first</strong> line of customer trust and credibility• Business training – helps you run your business more professionally andmore effectively• Sales training1. Getting to know the customer2. Meeting customer needs3. Building long-term valued rel<strong>at</strong>ionships with customers“In my 33 years of businessI have n<strong>ever</strong> <strong>at</strong>tended <strong>at</strong>raining by a company th<strong>at</strong>focused on making mycompany better and not justhow I could sell more oftheir products!”For more inform<strong>at</strong>ion onbecoming a <strong>Hunter</strong> <strong>Douglas</strong>Window Fashions Gallery TMDealer, contact Ms SharonYong <strong>at</strong> 6479-7888 today.The Life of a TrendEMERGING PRE-PEAK POST-PEAK• Artisan talent and cre<strong>at</strong>ivity • Trend is established • Sales begin to slow• Specialty stores • Volume sellers • More supply/lower prices• Early adopters/risk takers• Economies of scale and affordable pricing• Highest prices/modest sales• Prolifer<strong>at</strong>ion of product and brisk salesINCOMING PEAK OUTGOING• Trend-forward retail and Web • Highest volume of exposure/interest/sales • Non-prestige loc<strong>at</strong>ions• First price drop • The beginning of the end • Decline in quality with even lower prices• Mainstream America learns of the trend• Consumers aspire to own the trendDECLINE• No meaningful role as a fashion st<strong>at</strong>ementGeorge WhalinFounder, Retail Management ConsultantsBuilding Your Business in the New RetailMarketplaceAt the Intern<strong>at</strong>ional <strong>Alliance</strong> Conference, Georgefocused his present<strong>at</strong>ion on how to build one’sbusiness in the new retail marketplace. In hispresent<strong>at</strong>ions, George gave the audienceinnov<strong>at</strong>ive ideas as well as practical, hard-hittingstr<strong>at</strong>egies and tools they can put to use rightaway to build their businesses, sell moremerchandise, and better serve today’s savvy consumers.Wh<strong>at</strong> does the present day consumer expects?• Quality, name-brand products• Fair prices• Knowledgeable, helpful people• Multiple payment options• Respect for his/her time• Pleasant, hassle-free experienceHere’s a summary of George’s “Roadmap to Retail Success”:1. L<strong>ever</strong>age your strengths and elimin<strong>at</strong>e your weaknesses2. Pay <strong>at</strong>tention to the marketplace.3. Look for opportunities4. Tre<strong>at</strong> <strong>ever</strong>y customer like your only customer.5. Challenge your mind-set.6. Distinguish your business from <strong>ever</strong>yone else.7. Embrace change.8. Elimin<strong>at</strong>e backward thinking.9. Invest in your people.10. Be the best… It’s the only marketplace th<strong>at</strong> is not crowded.1213