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<strong>Failure</strong> <strong>IS</strong> <strong>An</strong> <strong>Option</strong><br />
Patrick Doyle, President & CEO – Domino’s
Or…<br />
“How to Transform a Legacy Company<br />
into a Technology-Enhanced, Nimble,<br />
Category-Disrupting Machine”<br />
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What’s Needed?<br />
<strong>An</strong> appetite for risk<br />
<strong>An</strong>d more importantly:<br />
The stomach for it<br />
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Let’s face it:<br />
Taking risks is…well, risky.<br />
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Why are we afraid to take risks?<br />
Omission Bias<br />
(Inaction is less blame-worthy than action)<br />
&<br />
Loss Aversion<br />
(Playing not to lose vs. playing to win)<br />
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At DPZ…<br />
We play to win.<br />
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What does that mean?<br />
Very different approach to<br />
the budget process.<br />
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Typical Budget Process<br />
How much do we think we will grow?<br />
How much can we afford to spend?<br />
Can we try some new things?<br />
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Our Approach<br />
We look at the expected value of projects,<br />
including the risk, and will place lots of bets.<br />
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Risks and Big Bets<br />
Early Risks:<br />
• Founding the company in the first place<br />
• Going all-in on delivery model<br />
• Creating, then eliminating, the 30 Minute<br />
Guarantee<br />
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Risks and Big Bets<br />
Recent Risks:<br />
• Apologizing for our product taste on national TV<br />
• Opening pizza restaurants in Italy<br />
• Revamping virtually our entire menu<br />
• Chicken with pizza toppings?<br />
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Risks and Big Bets<br />
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Risks and Big Bets<br />
Big Bets in Technology:<br />
• Developing virtually everything in-house<br />
• Ordering pizza via emoji<br />
• Creating ‘Dom’ for voice ordering<br />
• Introducing ‘zero click’ ordering<br />
• Going all-in on our ‘<strong>An</strong>yware’ platform<br />
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Risks and Big Bets<br />
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Risks and Big Bets<br />
Big Bets in Delivery:<br />
• DRU<br />
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Risks and Big Bets<br />
Big Bets in Delivery:<br />
• Drones<br />
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Risks and Big Bets<br />
Big Bets in Delivery:<br />
• DXP<br />
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Risks and Big Bets<br />
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Is It Working?<br />
• 7 consecutive years of positive U.S. sales growth<br />
• 1,000 new stores in trailing 12 months<br />
• Fastest-growing Quick Service Restaurant brand<br />
• Share price: $4.97 (2009) to $155.01 (2016)<br />
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Is It Working?<br />
• Amazon asked us to be part of Echo<br />
• Microsoft CEO showcased a Domino’s-ordering<br />
bot on stage at developers conference<br />
• Most importantly: our approach has attracted the<br />
best talent around<br />
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Conclusion<br />
• Embrace risk! Think like investors, not managers<br />
• Get ahead of the curve, even if it doesn’t work<br />
right away<br />
• Providing ‘permission to fail’ is energizing<br />
• Energy creates positive momentum<br />
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<strong>Failure</strong> <strong>IS</strong> <strong>An</strong> <strong>Option</strong><br />
Patrick Doyle, President & CEO – Domino’s
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