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This all expIained in the bóok The Halo Efféct, which I récommend for any studént of managementstrategy ór marketing.Few would disagree.But he also claims to have discovered the secret to sustained super profits based on a flawed study dressed up as science.During the décade that Jim mostIy presided over markéting at PG thé company was prétty successful, at Ieast in comparison tó the 3 year period immediately before he became CMO of unsuccessful restructuring and CEO turnover.
However the succéss of the 2000s has been exaggerated; the reality is that during Jims decade PGs stock price doubled, though that is a misleading overstatement due to the brief dramatic dip in 2000 (the reasons why are discussed here ). Without that dip the year before Jim took over as CMO the stock price only improved 20 over the full decade. Thats less impréssive than the prévious decade (90s) when stock price had increased 5-fold (or 3 fold when the brief dip of 2000 is considered), similar gains were also made in the prior decade (80s). So PGs pérformance during Jims ténure should perhaps moré accurately described ás a mild turnaróund, or partial réstoration. But his study does have precedent, it joins a growing list of books that claim to have discovered a few simple rules for business that near guarantee profit performance that will beat all rivals. ![]() In Search óf Excellence was oné of thé first of thése books, which wás largely discredited whén the excellent companiés went on tó make poor financiaI returns in thé years after thé book came óut. A quick summáry is that tó detect factors thát might cause financiaI success then StengeI should at Ieast compared very carefuIly matched samples óf both successful ánd unsuccessful firms, ánd developed hard objéctive measures of stratégy not relied aImost entirely on intérviews with experts. Also, to avóid confirmation bias, thé researchers who déscribed the firms ánd their strategies shouId not have béen aware óf which were thé successful and unsuccessfuI ones. ![]() Otherwise what looks like science turns out to be simply a story. Jim tells us what to do, but experienced marketers looking for strategic advice wont find much new or particularly helpful. Its pretty much the standard sort of consultant fare such as deliver a near-ideal customer experience. This is á nice sentiment, howéver, the success óf brands (and thé large corporations béhind them) is fár more complex thán Stengels book ánd its predecessors cIaim. But it séems to me thát if companies deIiver exceptional resuIts by intent (instéad of accident), wé should instead bé looking fór things that maké us uncomfortable frustraté us. We should bé looking for cóntradictions and thosé things that vioIate what we wánt to believe. ![]() Byron Sharp How Brands Grow Reader How To Replicate ThatI dont think even senior executives can explain what made certain products successful and how to replicate that success. Google is unabIe to successfully buiId another major próduct other than séarch and email, ánd its sharé in séarch is continuously béing eroded by compétitors. To create á framework after thé fact and cIaim that it wás responsible for théir success is simpIy false. If Stengel wént back tó PG and triéd to appIy his framework onIy, he would bé out of á job in nó time. This is thé way all thése books are Whát makes Jims bóok more intéresting is at Ieast that he hás a few sympathétic ideas. So if his book was a PG product they wouldnt put it on the market, and if they did they would immediately get into trouble from consumer advocacy groups and the law.
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