7 ideas for 10x growth
By Dan Mack
Transformation happens NOT when something new begins but when something old
falls apart. Transformation occurs through the
process of letting go of the old and embracing
the new, including a reorientation, said philosopher Richard Rohr.
The transformative companies are growing
at a rate at least 10 times the pace of their competitors. What’s their philosophy and what
makes them special?
First, they believe they control their destiny
— and it doesn’t matter what industry they
are in. Second, success is about something
bigger than sales — it is art; it’s purposeful
and beautiful. These companies are not necessarily more innovative, charismatic, faster, smarter or creative.
Nor are they always introducing big new ideas,
said bestselling business author Jim Collins. 10X
companies are more consistent than their competitors. Yes, they are agile — and flexible — but
they test the markets with lots of small bets.
And according to researcher Peter Sims, they
are not always first to market with their ideas. Be-
Morgan Hewett,
Instagram/Facebook,
Cultivating Brand Community
Mobile has become the biggest disruption in
the consumer path to purchase. Consumers spend
62% of their online time on mobile. There are now 1.7 billion users of Facebook and 500 million Instagram users, yet
brands are only investing 12% of their budgets on mobile advertising. Growth brands recognize that Facebook is a platform for personal connection — read: friends and family — while Instagram is a
source of daily inspiration — a “center of discovery” — meant to
reach a much broader community. Beauty followers use
Instagram an amazing 19 times per day. It is a venue
to introduce your brand’s personality.
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7
ing first to market actually
is quite overrated and
full of risk. 10x organizations are a radical
blend of innovation,
discipline, purpose
and execution.
We all crave
certainty. The
dark side of
many high-performing teams
is paranoia gone
amok. As Collins
reminds us, the very
best, highest-performing
10X companies embrace productive paranoia. They experiment, embrace
failure as a teacher and simplify their plans,
embracing the heart of execution.
In August, Drug Store News and Mack Elevation hosted a special one-day thought leadership summit in Boston, prior to the start of
NACDS Total Store Expo. The DSN-Mack Elevation 10x Growth Summit brought together
seven leaders, representing a range of experi-
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ences, who shared their insights on the leading
characteristics and skill sets embraced by 10X
growth companies.
What follows here are seven big ideas from
the event — share them with your sales and
marketing teams.
Ideas continued on page 18
Alex Perez-Tenessa,
CVS Health,
The Union of Health and Beauty
Beauty is evolving into health.
Healthy beauty will account for more than 50%
of all non-cosmetic beauty over the next three to
five years, specifically in such categories as skin,
hair and oral care. It is being fueled by such
smaller 10X growth brands as Vichy, Cetaphil,
CeraVe and Sensodyne. Most companies follow
the leaders, but the future is bubbling up on
the fringe.
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Alex Hurd,
Walmart,
Hidden Growth Assets
Walmart has a relentless focus on the customer; it is a culture built on humility and mentoring others. The DNA of the company is borne from servant leadership, patience, resilience
and a philosophy of correcting errors. Walmart strives to be
the “Front Door to Health” for today’s consumer, and is looking for five unique hidden assets from its partners — emerging
(transformative) insights; unconventional alliances; a vision to
move from products to solutions and bringing new ideas to
new markets; experiential solutions that drive share
of heart; and ideas for reimagining preventive
care in the United States.
Larry Levin,
IRI, Hyper Personalization
It’s not about being all
things to all shoppers; it is about being
hyperlocal, aligning product assortment to the
right store. Store segmentation is now happening
on a per-store level. IRI calls this “segmentation of
one.” On a broader level, 20% of the top growth markets
deliver 33% of the growth. 10X companies think like a
start-up, not striving for perfect — 100% — distribution, but distributing perfectly — surgically — in the right stores.
Brian Owens,
Kantar Retail,
New Rules of Thought Leadership
We now live in disruption, polarization and urban growth. Growth companies create shopper-first organizations. 10x companies are
flatter, more flexible and great at listening to the
shopper. They understand that you can’t do
it alone; 10X organizations understand that
partnerships are the key to success.
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Doug Stukenborg,
formerly of Target,
New Rules of Value Creation
Most companies introduce “me-too extensions” while growth brands “reframe” categories or create them.
The best companies ensure innovation addresses a consumer gap that matters, and they manage risk by collaborating
with the right retail partners. And they move fast. The very best
have a “Speed is Life” approach, and they use rapid prototyping
to assess, gather feedback and iterate their product lines. They
don’t expect perfection coming out of the gate; they introduce an idea and course-correct along the
way. They think like artists. Sarah Carberry,
Google/YouTube,
Storytelling for the
YouTube Generation
There are 142 cable networks, yet 6-out-of-10
consumers prefer online video platforms to live TV.
We live in the golden age of content, and YouTube is
helping to drive it. Consumers want stories, and the
best organizations curate compelling content, encourage connection and facilitate community. Great
brands are authentic storytellers, taking their
tribe on a journey. They “show” why they
are great; they don’t just “talk” about it.
ABOUT THE MODERATOR
Dan Mack is the founder and
managing director of Mack
Elevation Forum, and author
of the book “Dark Horse: How
Challenger Companies Rise
to Prominence.”
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