Confidential Information  ©  2008 The Identity Circle. All rights Reserved How to be a marketing leader in the  new econ...
In a nutshell … Confidential Information  ©  2008 The Identity Circle. All rights Reserved “  Marketing  is  the  essentia...
I  The Great Reckoning II  The identity-value creation connection III   The science of identity IV  Secrets of value creat...
I  The Great Reckoning (puts the spotlight on  value creation)
“ The crisis was the result of  a perfect storm  – everything that could go wrong did.”  Steve Forbes “ A series of  life-...
An economic “reset” = a marketing reset The Great Reckoning  Confidential Information  ©  2008 The Identity Circle. All ri...
II   The identity-value creation connection  (is the “reset” key for marketers)
<ul><ul><li>“ Identity” is a company’s  … </li></ul></ul><ul><ul><li>Name + logo </li></ul></ul><ul><ul><li>Tagline </li><...
Identity, the human phenomenon The identity-value creation connection  Confidential Information  ©  2008 The Identity Circ...
Identity, the organizational phenomenon The identity-value creation connection  Confidential Information  ©  2008 The Iden...
What is “ identity? ”   The unique set of characteristics that reveal one’s  value-creating potential  The identity-value ...
<ul><ul><li>Dow Chemical’s  value creation  challenge:  </li></ul></ul><ul><ul><li>Slow growth for many years  (3 – 4%) </...
<ul><ul><li>Five  institutional capacities  distinguished Dow: </li></ul></ul><ul><ul><li>A genius for  “ life-changing” c...
<ul><li>Dow’s consumer impact highlighted the company’s focus on   “the essentials of life.” </li></ul><ul><li>Market   % ...
The identity-value creation connection Confidential Information  ©  2008 The Identity Circle. All rights Reserved
<ul><li>1999  </li></ul><ul><li>$18+ billion sales  </li></ul><ul><li>For years, only GDP growth  ( 3 – 4% ) </li></ul><ul...
<ul><ul><li>Identity, the marketing phenomenon </li></ul></ul>The identity-value creation connection Confidential Informat...
III  The Science of Identity (emerges)
<ul><li>The Identity Impact Survey  (Summer/Fall 2009) </li></ul><ul><li>One-year effort </li></ul><ul><li>1,941 responden...
Organizational and Individual Identity Strength  have a major impact on employee engagement and  employees’ resultant comm...
What’s the payoff?
Identity strength  is a leading indicator of a company’s value-creating capacity …
…  and holds crucial  business implications <ul><li>Constrained value creation  </li></ul><ul><li>Handcuffed financial per...
IV  Secrets of value creation (and the marketing action each implies)
<ul><ul><li>1.  Value is the proprietary contribution a company is capable of making  … </li></ul></ul><ul><ul><li>In the ...
<ul><ul><li>1. Value is the proprietary contribution a company is capable of making  … </li></ul></ul><ul><ul><li>Marketin...
<ul><ul><li>2.  Identity is the source of value creation </li></ul></ul><ul><ul><li>Provides a  center of gravity  for all...
<ul><ul><li>2. Identity is the source of value creation </li></ul></ul><ul><ul><li>Marketing action:  </li></ul></ul><ul><...
  Secrets of Value Creation <ul><ul><li>3.  Value creation drives wealth creation </li></ul></ul>Employees   (create value...
<ul><ul><li>3. Value creation precedes wealth creation </li></ul></ul><ul><ul><li>Marketing action:  </li></ul></ul><ul><u...
<ul><li>4.  Value is maximized when it is created on four levels, simultaneously.  Value for  … </li></ul><ul><li>  </li><...
<ul><ul><li>4. Value is maximized when it is created on 4 levels, simultaneously. </li></ul></ul><ul><ul><li>Marketing act...
<ul><li>5.  All value flows upstream. </li></ul><ul><li>  </li></ul><ul><li>No matter where a company is on the  value cha...
<ul><ul><li>5. All value flows upstream. </li></ul></ul><ul><ul><li>Marketing action:  </li></ul></ul><ul><ul><li>Market t...
V  Marketing leadership   (in the new economy)
<ul><li>Clarify and invest in your company’s  unique, value-creating capacities </li></ul><ul><li>Crack the code on – and ...
Thank you! www.theidentitycircle.com
<ul><ul><li>The problem:  Wealth creation before value creation </li></ul></ul><ul><ul><li>The solution:  Value creation b...
<ul><li>From survival of the fittest to  survival of the finest </li></ul><ul><li>Purpose guides profit </li></ul><ul><li>...
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How To Be A Marketing Leader

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Delivered at a national Chief Marketing Officers conference last November, this presentation offers unique insights into how to increase the impact and status of marketing in any organization.

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  • WHEN I BEGAN WORKING WITH DOW IN 1999, GROWTH HAD STALLED. ALLOWING FOR ACQUISITIONS (INCLUDING UC), THAT IS STILL SOME STORY! THE MOST IMPRESSIVE PART IS THE GROWTH RATE …
  • CAPITALIZE ON THE ECONOMIC INTERDEPENDENCE OF STAKEHOLDERS – ALIGN THEIR INTERESTS
  • How To Be A Marketing Leader

    1. 1.   Confidential Information © 2008 The Identity Circle. All rights Reserved How to be a marketing leader in the new economy – Learn the 5 secrets of value creation
    2. 2. In a nutshell … Confidential Information © 2008 The Identity Circle. All rights Reserved “ Marketing is the essential, ubiquitous task of management… … the purpose of which is to create a customer … … by understanding and meeting basic societal needs . ” - Peter Drucker
    3. 3. I The Great Reckoning II The identity-value creation connection III The science of identity IV Secrets of value creation V Marketing leadership The story in brief Confidential Information © 2008 The Identity Circle. All rights Reserved
    4. 4. I The Great Reckoning (puts the spotlight on value creation)
    5. 5. “ The crisis was the result of a perfect storm – everything that could go wrong did.” Steve Forbes “ A series of life-threatening problems within many of the world's great financial institutions was unveiled.” Warren Buffett “ In this reset economy , we have an opportunity to grow GE over the long term…in ways that drive customer productivity.” Jeff Immelt The Great Reckoning Confidential Information © 2008 The Identity Circle. All rights Reserved
    6. 6. An economic “reset” = a marketing reset The Great Reckoning Confidential Information © 2008 The Identity Circle. All rights Reserved
    7. 7. II The identity-value creation connection (is the “reset” key for marketers)
    8. 8. <ul><ul><li>“ Identity” is a company’s … </li></ul></ul><ul><ul><li>Name + logo </li></ul></ul><ul><ul><li>Tagline </li></ul></ul><ul><ul><li>Design system </li></ul></ul><ul><ul><li>Brand </li></ul></ul><ul><ul><li>All of the above </li></ul></ul><ul><ul><li>None of the above </li></ul></ul>The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    9. 9. Identity, the human phenomenon The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    10. 10. Identity, the organizational phenomenon The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    11. 11. What is “ identity? ” The unique set of characteristics that reveal one’s value-creating potential The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    12. 12. <ul><ul><li>Dow Chemical’s value creation challenge: </li></ul></ul><ul><ul><li>Slow growth for many years (3 – 4%) </li></ul></ul><ul><ul><li>Solid attributes… quality, trustworthy, reliable, committed </li></ul></ul><ul><ul><li>No answer to the question: What makes Dow, Dow? </li></ul></ul>The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    13. 13. <ul><ul><li>Five institutional capacities distinguished Dow: </li></ul></ul><ul><ul><li>A genius for “ life-changing” customer relationships </li></ul></ul><ul><ul><li>A passion for scale </li></ul></ul><ul><ul><li>A talent for “ whole system” thinking and action </li></ul></ul><ul><ul><li>An obsession with improvement </li></ul></ul><ul><ul><li>A bias toward the essentials of life </li></ul></ul>The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    14. 14. <ul><li>Dow’s consumer impact highlighted the company’s focus on “the essentials of life.” </li></ul><ul><li>Market % </li></ul><ul><li> Food 21.5% </li></ul><ul><li>Household & Personal Care 14.9% </li></ul><ul><li>Building Maintenance & Construction 10.9% </li></ul><ul><li>Transportation 10.2% </li></ul><ul><li>Home Care & Improvement 7.9% </li></ul><ul><li>Paper & Publishing 5.9% </li></ul><ul><li>Furniture & Furnishings 5.6% </li></ul><ul><li>Electronics & Entertainment 5.4% </li></ul><ul><li>Health & Medicine 3.2% </li></ul><ul><li>Water Purification & Waste Management 2.9% </li></ul><ul><li>Miscellaneous 2.5% </li></ul><ul><li>Heavy Construction 0.2% </li></ul><ul><li>Oil & Gas 8.9% </li></ul><ul><li>100.0% </li></ul>The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    15. 15. The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    16. 16. <ul><li>1999 </li></ul><ul><li>$18+ billion sales </li></ul><ul><li>For years, only GDP growth ( 3 – 4% ) </li></ul><ul><li>  </li></ul><ul><li>2008 </li></ul><ul><li>$50+ billion sales </li></ul><ul><li>Since1999: 13% annual growth rate </li></ul>The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    17. 17. <ul><ul><li>Identity, the marketing phenomenon </li></ul></ul>The identity-value creation connection Confidential Information © 2008 The Identity Circle. All rights Reserved
    18. 18. III The Science of Identity (emerges)
    19. 19. <ul><li>The Identity Impact Survey (Summer/Fall 2009) </li></ul><ul><li>One-year effort </li></ul><ul><li>1,941 respondents </li></ul><ul><li>5 companies (21 candidates) </li></ul><ul><li>$50MM to $8 billion </li></ul><ul><ul><li>Global and domestic </li></ul></ul><ul><ul><li>Public and private </li></ul></ul><ul><ul><li>B2B and consumer </li></ul></ul><ul><li>Sophisticated psychometrics </li></ul>The Science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved
    20. 20. Organizational and Individual Identity Strength have a major impact on employee engagement and employees’ resultant commitment to the brand (r = .686)
    21. 21. What’s the payoff?
    22. 22. Identity strength is a leading indicator of a company’s value-creating capacity …
    23. 23. … and holds crucial business implications <ul><li>Constrained value creation </li></ul><ul><li>Handcuffed financial performance </li></ul><ul><li>Inefficient strategy deployment </li></ul><ul><li>Limited innovation </li></ul><ul><li>Overpromise, under-deliver on brand </li></ul><ul><li>Low-traction culture </li></ul><ul><li>Lower investment value </li></ul><ul><li>High value creation </li></ul><ul><li>Superior financial performance </li></ul><ul><li>Effective strategy deployment </li></ul><ul><li>Efficient innovation </li></ul><ul><li>Strong brand </li></ul><ul><li>Responsive culture </li></ul><ul><li>High investment value </li></ul><ul><li>Low value creation </li></ul><ul><li>Sub-par financial performance </li></ul><ul><li>Ineffective strategy deployment </li></ul><ul><li>Depleted innovation </li></ul><ul><li>No meaningful brand </li></ul><ul><li>Dysfunctional culture </li></ul><ul><li>Low investment value </li></ul><ul><li>Pent-up value creation </li></ul><ul><li>Limited financial performance </li></ul><ul><li>Inefficient strategy deployment </li></ul><ul><li>Limited innovation </li></ul><ul><li>Brand confusion </li></ul><ul><li>Diffuse culture </li></ul><ul><li>Lower investment value </li></ul>
    24. 24. IV Secrets of value creation (and the marketing action each implies)
    25. 25. <ul><ul><li>1. Value is the proprietary contribution a company is capable of making … </li></ul></ul><ul><ul><li>In the marketplace </li></ul></ul><ul><ul><li>In the world </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    26. 26. <ul><ul><li>1. Value is the proprietary contribution a company is capable of making … </li></ul></ul><ul><ul><li>Marketing action: </li></ul></ul><ul><ul><li>Clarify and invest in your company’s unique, value-creating capacities </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    27. 27. <ul><ul><li>2. Identity is the source of value creation </li></ul></ul><ul><ul><li>Provides a center of gravity for all decisions and actions </li></ul></ul><ul><ul><li>Yields a sustainable competitive advantage , by leveraging unique, institutional capacities </li></ul></ul><ul><ul><li>Leads to developing the “right” products for the right reasons </li></ul></ul><ul><ul><li>Fosters “efficient innovation” </li></ul></ul><ul><ul><li>Inspires a timeless brand </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    28. 28. <ul><ul><li>2. Identity is the source of value creation </li></ul></ul><ul><ul><li>Marketing action: </li></ul></ul><ul><ul><li>Crack the code on – and “market” – the identity of your company. </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    29. 29. Secrets of Value Creation <ul><ul><li>3. Value creation drives wealth creation </li></ul></ul>Employees (create value) Customers (purchase value) Investors (finance value) Suppliers Communities Government Unions Direct End users Society Analysts Portfolio managers Shareholders
    30. 30. <ul><ul><li>3. Value creation precedes wealth creation </li></ul></ul><ul><ul><li>Marketing action: </li></ul></ul><ul><ul><li>Align the interests of all stakeholders to the company’s advantage. </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    31. 31. <ul><li>4. Value is maximized when it is created on four levels, simultaneously. Value for … </li></ul><ul><li>  </li></ul><ul><li>Individuals – products and services that spur creativity and productivity </li></ul><ul><li>Businesses – solutions that improve customers’ performance </li></ul><ul><li>The industry – innovations that increase the overall impact of that industry on the economy </li></ul><ul><li>Society – changes that meet fundamental needs, which improve people’s lives </li></ul><ul><li>  </li></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    32. 32. <ul><ul><li>4. Value is maximized when it is created on 4 levels, simultaneously. </li></ul></ul><ul><ul><li>Marketing action: </li></ul></ul><ul><ul><li>Market comprehensively – answer individual, business, industry, and societal needs, simultaneously . </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    33. 33. <ul><li>5. All value flows upstream. </li></ul><ul><li>  </li></ul><ul><li>No matter where a company is on the value chain, success </li></ul><ul><li>depends on its contribution to the well-being of end-users </li></ul><ul><li>Developing institutional roots is the key – Building a relationship with the society or culture of which the company is necessarily a part . </li></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    34. 34. <ul><ul><li>5. All value flows upstream. </li></ul></ul><ul><ul><li>Marketing action: </li></ul></ul><ul><ul><li>Market the “institution” not just the business – become a societal brand </li></ul></ul>Secrets of Value Creation Confidential Information © 2008 The Identity Circle. All rights Reserved
    35. 35. V Marketing leadership (in the new economy)
    36. 36. <ul><li>Clarify and invest in your company’s unique, value-creating capacities </li></ul><ul><li>Crack the code on – and “market” – the identity of your company </li></ul><ul><li>3. Align the interests of all stakeholders to the company’s advantage </li></ul><ul><li>4. Market comprehensively – Answer individual, business, industry, and societal needs </li></ul><ul><li>5. Market the “institution” not just the business – Become a </li></ul><ul><li>societal brand </li></ul>Marketing leadership in the new economy Confidential Information © 2008 The Identity Circle. All rights Reserved
    37. 37. Thank you! www.theidentitycircle.com
    38. 38. <ul><ul><li>The problem: Wealth creation before value creation </li></ul></ul><ul><ul><li>The solution: Value creation before wealth creation </li></ul></ul><ul><ul><li>Who: Marketing </li></ul></ul><ul><ul><li>Why: Guardians of value creation </li></ul></ul><ul><ul><li>How? … </li></ul></ul>Marketing leadership in the new economy Confidential Information © 2008 The Identity Circle. All rights Reserved
    39. 39. <ul><li>From survival of the fittest to survival of the finest </li></ul><ul><li>Purpose guides profit </li></ul><ul><li>Contribution dictates reward   Everyone may make money, but the &quot;finest&quot; institutions will emerge as our new economic leaders … </li></ul><ul><li>… Companies that not only stay financially solvent, but who cultivate strong value-creating cores. </li></ul>The Great Reckoning Confidential Information © 2008 The Identity Circle. All rights Reserved

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