Stalled, Stuck or Stale The Blog For Brands That Don't Have It All Together

A Gift That Keeps On Giving

Every New Year is full of promise. Some years deliver, while others…well, others we suffer through (don’t even ask me about 1985). I’m hopeful that 2011 is going to be a great year, and to get it off on the right foot I’d like to offer a suggestion.

Take just a few minutes and think about those whom you personally or professionally respect—truly, deeply, sincerely respect. At first it may be difficult to come up with even one or two names; as you think about it, however, several people may come to mind.

Then tell them.

That’s a bit more difficult, because we all get so busy. It takes a minute or two, after all, and gee, it’s kind of personal. But that’s the point. Make a call, send an email, write a note (what a concept), even post or tweet to (or about) them. Doing so just might make your day, and it will certainly make theirs.

What better way to kick off a new year than with honest sentiments, sincerely expressed? As Alka-Seltzer used to say, “Try it. You’ll like it.” Instead of causing indigestion, though, you’ll be relieving it.

A Sign of a Well-Run Company

My firm recently began working with a client on which we’ve had our eye for some time. We first got to know the company when several of us became customers and witnessed how well it operated. We saw that the brand had a tremendous upside, and we were pleased when its leadership team agreed to partner with us to tap it.

I guess I shouldn’t have been surprised, then, that during our first session with the management team—which lasted a full four hours—no one had to dash out of the room to take a phone call or answer an urgent email. Even when we took a break nothing happened; a few people got up and stretched their legs, but nobody darted off, disappeared, or returned to the room with a panicked look on their face.

That, I thought, was truly telling: This is a well-run company. It has good systems, hires good people, and trusts them to make the daily decisions necessary to do their jobs well.

Not a bad example to follow.

The Uniqueness Paradox

“The most important word in strategy is uniqueness, uniqueness, uniqueness.”

Those are the words of Todd Zenger, a professor at the Olin School of Business at Washington University in St. Louis. His observation is as true as it is simple, but things get more complicated as he continues the thought: “On the other hand, there’s this message from the market which is simple, simple, simple, common, common, common, familiar, make it look like what others are doing so it’s understandable.”

Zenger is referring to a phenomenon confronting strategy-makers called the “uniqueness paradox.” In a paper titled Corporate Strategy, Analyst Coverage, and the Uniqueness Paradox, Zenger and two colleagues explain how capital markets systematically discount strategic uniqueness because it drives up their costs of collecting and analyzing information to determine the future value of a corporation. Thus, a company implementing brilliant strategy may actually be undervalued by the investment community, specifically because of that strategy. Now that stinks.

Unfortunately, the uniqueness paradox can have damaging effects within corporations as well. Jerry Thomas, president and CEO of Decision Analystexplains how the paradox can hinder product development research: “We see many highly unique concepts killed by companies every year because purchase intent scores are marginal,” Thomas says. “The more unique a concept is, the greater its chances of success in the marketplace. A highly unique product will tend to enjoy a monopoly—since nothing else is quite like it. However, the more unique a concept is, the lower its “purchase intent” scores will tend to be.”

This insidious paradox can infect any and all forms of marketing and advertising, from tactic development to integration strategy to creative execution. “New” is by definition different, and different is scary. Zenger and Thomas correctly point out how uniqueness can color the opinions of investors and consumers, but marketers must also be cognizant of their own susceptibility to the paradox. Anyone who isn’t a natural risk-taker can be effectively grounded by it.

The solution? Thomas recommends that in new product testing “extra points” be given to highly unique concepts, simply because they’re unique. That seems like a good rule of thumb to follow in general. When you find yourself sweating over something because it’s unfamiliar and a little bit scary, that’s a sign not to pull back, but to press forward.