Nothing Changes: Drucker's questions are eternal | Jorge Sá | TEDxGrandRapids

good morning in our section today we're going to share four conclusions first in this world of ours there are some things which never change they always remain second those things are the good questions third since good questions are eternal they are more important than answers and forth and finally if we wish to find great questions which will last forever we should as a cobra did read recur which remains today as actual as ever and that's our title is Drecker questions by return how can that be after all we have so full of stories about change for instance when Lincoln was elected president to come down his friends he told them story about the ancient king who called his advisors and said go think and come back with what universal truth one thing when they returned they said the only thing which is constant is that everything passes away the universe is change and that applies to people small businesses even to large corporations that as we all know sometimes have strong advantages terms of lower costs because of economies of scale and greater financial power for price and promotion Wars however in spite of disadvantages when we compare the Giants of today with those of the beginning of the millennium only to further the same compared with the 90s only how far the same and compared with the 80s only 1/4 for the same free in for Giants are different and so since only change is constant yes through history scientists religious leaders poets statesmen have pointed out two conclusions follow first if we keep on doing what worked in the past we are going to fail and second to change this to improve to change often is perfection every single day brings new information and the new reality and thus the first better question the first question that Drecker used to ask managers was if we were to decide now would we still enter into the businesses were in today even this the answer is not what are we going to do about that take kimberly-clark 20 billion cells one and a half billion income corporation great company right well it wasn't always so born in 1872 it was a mediocre company for one century and till the 1970s when Smith an extremely unassuming man very shy became president and asked the director question if I was to decide today what kind of kimberly-clark would I build and his answer was I would not be in the paper Museum coated paper businesses I would be only in consumer products and so he sold everything outside consumer products invested the raise money in clinics and Huggies and very soon was having 50% market shares and outperforming the market by more than four times what leads us to free conclusions first nobody can afford the legacy of copying the past second the only way for an institution to maintain continuity is by building systematic innovation in its structure and third since resources are scarce the first step to innovate to grow is to decide what to divest today even if in some businesses we are not losing money but if some businesses are less profitable than others let's say I buy two pieces of land a few years down the road I know that one piece of land is less fertile than the other my resources are scarce I don't have enough time and seeds to plant those question why should I plant the less fertile piece of land why water the wine and then of course that plan development that is to sacrifice what we are to what we can be applies as much to strategy and businesses as to the internal parts of the organization's the department's the problems the task forces the rules in the two years after his return typo Jobs took the company out of 350 programs and today why because jobs role model was gretzky with rebooting his success - I skate to where the puck is going to be north what has been and jobs added in an interview that's what I have if we were to decide now would we still be making the things that we are today what do I have to abandon to create room for tomorrow before asking myself am i doing things right I should ask myself am i doing the right things because ladies and gentlemen first things first second things never and therefore plan development is like taming a tree so that the tree can grow now if plan development has to do with abandoning the past another greater question focus on the present and ask who is the client with the objective of finding a type of client which oh it's more in my portfolio than in society in general thus that type of client has selected me thus I make sense to him or to her therefore it's easier to grow by attracting more of the same same thing of course which must be done with utmost care as in life small things make a great difference and so when we are defining who is the client we should add as many variables as possible age sex phase of life cycle etcetera as long as they are healthy take the color Wars at a certain stage go was selling five times Pepsi it was almost an icon what did Pepsi do it looked at its portfolio of sales and found out that in its portfolio teenagers represented a far greater percentage than in society in general why well let me ask you why do grandparents and grandchildren get along so well I'm sure they share the common enemy that is for many teenagers there are two types of opinion in this world those of the parents and the right ones and so if the parents are drinking coke they should be drinking something else and therefore Pepsi focused on the teenagers launched the campaign which was a huge success called the Pepsi generation campaign and which improves itself latif to go by three times then by defining who is our client comes the second advantage we become aware of who is the non client only by knowing the asses do we know the laws and the non clients always outnumber the clients and so the third record question is who is the non client and mr. non client why aren't you buying from us Aldo Gillette dominated the Indian market for long it found out that its client basis works only the urban middle to upper social classes one-third of the alien population why weren't the other two-thirds poodle and lower social classes buying well they could afford razor the blade the cream didn't even have a panic water so what did she let do to serve its non clients launched a new blade called God cheaper although less profitable but which requires neither cream no running water just a cup of water and increased its market share to 95 percent twelve points in five years who is the non client and miss is non client why don't you buy from us fine we know who is the non client and we know who is the client but what is value for the client now tuition as well since frequently trial a very shy to talk about their needs or not even aware of them we must scratch beneath the surface make a deep plunge to find and tap needs which we allow to differentiate our offering from competition and that is what some tour operators did in tourism and thus created the get-away-from-it-all niche where people do not want to see anything on the contrary they just not want to be seen as for its enroll their working clothes are short and slippers then other travel agencies found out that for other clients value is what they can brag about they are after others afterwards it's the status segment then still for other clients value is not what they see not not to be seen not what they can grow about but who else knows it the old widows niche which use travel to meet other old ladies make friends with other world ladies or to increase the bonds with their grand children socialize meet new people bring your granddaughters to Paris to tango lessons in Buenos Aires and then of course there is the bozo segment which going far beyond adventure simple things like safaris and so that's for sissies includes very relaxing holidays such as a Sahara marathon 140 miles 6 days only self-sufficient water in the back and then 122 Fahrenheit degrees fantastic now you are a beginner no problem explored worldwide agency which has more than 40 client trials 4000 trials and the market growth of 15% offers you the possibility of spending two weeks in these fantastic installations without anything all by yourself bathroom not included of course then by defining who is what is very for the client we became aware of another very important record question what is non value for the client the parts of the product where we can save money because the client does not care about them curves is a gymnasium only for woman as it found out that many woman did not care for soundness sophisticated machinery Turkish baths pool and most specially did not want men around looking at them ok get man out ok and so curves with great success created a network of small non expensive neighborhood gymnasiums with simple machinery organized in a circle there are of course ladies and gentlemen have a very interesting director questions but it's time to conclude by stressing 5 points in the movie lay apart the Prince of Salina played by Burt Lancaster tries in 19th century Italy to maintain its preeminence in a type of great political social economic changes and at a certain point he complains to his nephew Tancredi played by Alain Delon a French actor we were the layout parts the Lions and those who are about to replace us are nothing but checkles and sheep to which the nephew who had recently married the doctor of very wealthy shopkeeper and shirt uncle if we weren't bad things stay as they are things will have to change and that is the first point of the five I will share with you in the conclusion since only change is constant if we keep on doing what succeed in the past we are going to fail therefore we must adapt but and this is second point how to adapt what to do and it is here precisely their questions enter by providing us with guidelines towards useful actions wait do I have to abandon today to save space resources and invest in the most promising areas who is my client who is the non client what is there for my client what is not value and so on caution in order to get useful actions we must ask the right questions not wrong words not should I get prices to increase market share before assessing which businesses divest to save scarce resources for the most profitable words not should I enlarge the distribution channels before defining who is the client and which distribution channels that she or he frequent not should I increase advertising before him making sure that my present campaign is what is the core very further ayat not in which sections to cut prices before asking myself what is not very for the client and where you can save money without working sales and so we can all see now three things first that while answers change are temporary questions are permanent eternal second that questions are more important than ashes not to me by because they remain but also because they guide us to use for actions and so it has been said judge and man by his questions not by his actions and that is precisely why ladies and gentlemen we should with greater for the quality of his questions this gentleman said when he was asked what do you read in management and she immediately answered director of course and then after considerable time and effort he added and health and to leave you in a positive tone what I'm bringing to you is good news in this world of change that is after all something we can hold to not only because of me eternal brings security but also because it's useful those things we can in a world of change hope to have the good questions because it has been said ask the good question and you immediately get half the Asha Center for interest

Channel: TEDx Talks

Views: 27,620

Keywords: TEDxTalks, English, United States, Business, Change

Id: SOkjPVi1Fts

Length: 22min 15sec (1335 seconds)

Published: Thu Jul 02 2015