| Issue 03 |

Iftach Wizel, Manager of Fox Man, Fox-Wizel Ltd.

• Number of employees in firm: 1500
  
• Number of employees under my direct responsibility : 10
  
• We provide : Clothing chains (women's wear, men's wear, children, underwear)
  
• I'm on the job for : 12 years, since we began. We opened one store and it continued to roll from then on.
  
• I like on the job : The creation, building whole collections, creating a fashion supply and see it worn by millions of people in Israel.
  
• Most difficult on the job : Travelling abroad, time away from my family (now, for instance, I often travel to Hong-Kong).
  
• Goals I set for myself : In business - after we have become Israeli leaders, the goal is to open stores and lead around the world. We've opened 5 stores in Singapore and our goals is 40 more over the next two years. Yhis year we open in Prague, Budapest and in Noevmber in Australia. In my personal life - I wish myself health for my family, which is the most important thing.
  
• Our vision : Be the leaders in everything we do. This was our decision back when we had one store. The way to achieve this is through perfectionism and professionalism, which is seen in everything we've done - women's fashion, men's fashion, children's and underwear.
  
• Original product in our market: When Zara opened stores in Israel - their entire collection was in shades of gray. When we considered how to respond, we thought it would be a mistake to imitate them. Instead - we sewed and sold tens of thousands gray undershirts, which were a complementing item to Zara's line. It is important to recognize one's strengths and weaknesses as an organization, and act accordingly.
  
• Sources of innovation : Listening to client needs. Our brand managers, chain managers and marketing managers go to the stores on a regular basis, working as salespersons and packers, every few months, thus collecting direct and immediate client feedback. In addition, we visit a lot of world fairs, read magazines, watch a lot of television (MTV).
  
• Book recommendation : Rich Dad, Poor Dad (by Robert Kiyosaki, Warner Books). The book undermines the formal (traditional) financial education, and explains how you should let money work for you.
  
• Send comments to: iftach@t-fox.co.il
  
• Would you like to be interviewed? : contact us
  

On innovation and strategy

While business (and marketing) strategy is a very popular and common work tool (in fact - a vital one), Innovation Strategy is far less common, and most managers fail to recognize the need for it. Innovation processes are indeed included in yearly workplans, but only in a small number of organizations everyone knows the purpose of innovation, which types of innovation should get priority (and which shouldn't!), what goals have to be reached in the area of innovation, and how they should be measured. In order to develop a clear and consistant innovation strategy, senior management should address major issues, including the following questions:

• How should our product (or service) basket develop?  Do we want to expand it (suitable for firms with a smaller basket compared to the competition), or cannibalize existing products, replacing them with new ones (suitable for firms with too many products, and for branded products developing from generation to generation - such as cars, software, etc.). It is important to focus on the size of the basket that the market and distribution system can hold (for example - a toilet paper manufacturer is limited by the shelf size reserved for him by the stores, and a bank is limited by the number of savings-plans that consultants can remember and market. However, a virtual internet CD shop may offer and almost unlimited product basket).
  
• Which types of innovation do we wish to offer? Do we want to develop product (or services) which are new to the organization (copied from the competition)? New to the local market (imported or copied from fairs abroad)? New to the world? Should we focus on upgrading product (evolution) or on creating revolutionary and truly innovative products (revolution)? This discussion should focus on the fit to the organization's general marketing strategy: an organization using the Me Too strategy should refrain from developing world innovations, while one offering international innovations should definitely do so. The results of the discussion should be a definition of the desirable annual innovation mix: how many products new to the world, country or organization we plan on developing this year, how many upgrades and revolutions do we wish to introduce each year.
  
• What are our goals in innovation? One possibility is to define the desired percent of revenues from new products (for instance - 3M set a 20% revenue goal for products developed in the past 4 years. They actually achieve 25%, and keep raising it year after year). Another option is to define the number of new products to be developed in each quarter (this suits companies which develop dozens of products each quarter, such as RubberMade). One should note the implications of such goals - the first leads to a "hectic" organization focused on incessant innovation, while the second leads to an "agile" organization, with small and fast development teams.
  
• What is the organizational infrastructure necessary to reach the set goals? What budget should be reserved fo innovation? Is it a realistic one, able to achieve those goals? Who should be responsibe for the issue of innovation? Leading innovative organizations nominate a VP for Innovation, with a marketing background and orientation. Which committees and forums should be set up? Who should measure the achievment of innovation goals? How should innovation process be promoted: through rewards? bonuses? training? knowledge management?

To conclude, in order to excel in the field of innovation, an organization has to take a step back from regular activities in this area (promoting this idea or that), in order to establish an updated policy and strategy for innovation, and then publish and assimilate it throughout the organization.

• For assistance in Innovation Management  : click here

My Years with General Motors / Alfred P. Sloan / Currency

Alfred Sloan, former CEO of General Motors, lead the firm betwwen 1923 and 1946 from 12% to 45% market share, and turned it into the world's leading car manufacturer. This allegedly autobiographical book, My Years with General Motors, reveals how it all happened, exposing a long line of "case studies" alongside with instructive and surprisingly up-to-date insights on strategy, organization, mass production, industrial design and financial and system vision.

Among other things, the book details on the success of GM's diversification strategy, which at its peak offered six car lines (and brands), in different price ranges while at the same time ingeniously integrating common parts into very different cars, and beating though rivals, especially Ford (which was making a single, cheap, model, selling some 50% of the cars in the market at the beginning of the described period). More than anything, this book is about how to effeciently lead a large corporation, through delegation of authority to operational units combined with central management control mechanisms. Alfred Sloan, considered to be the father of modern corporate management principles, describes in this book the principles developed at GM, which were at the root of the modern industrial revolution of the 20th century.

Inspite of the long time that has past since the writing of the book, it is still fascinating, instructive and inspirational - perhaps because it is focused on people, recording behaviors and struggles which are common the organizations small and large alike, and demonstrating how conflicts may be resolved in a humane and respectable manner. No wonder the book is still a must-read in numerous management schools, and that Bill Gates titles it "My favorite business book".

• Buy the book on: Amazon | Barnes & Noble
• A list of must-read books for managers 

Distribution

The Distribution thinking tool supplements the Multiplication tool discussed in the previous issue: it is a thinking process where the components and resources of the product or service are physically or spatially distributed.

The steps for performing Distribution are as follows:

1. Choose an existing product or service

2. List the components and resources of the product or service

3. Distribute one of the components/resources (to several sub-parts or in a physical space)

4. Visualize the new product or service, and identify its benefits and uses

Example 1:

• Existing product: refrigerator
• Components of the product: regular fridge compartment, freezer compartment, doors, handles, ice-cube maker...
• Improvements that have already been made:
  • Physical distribution for regular products (4 degrees centigrade) and freezer compartment (minus 4 degrees centigrade)
  • Freezer at the bottom (new spatial distribution: ease of use, less bending)
• Improvements that have not yet been made (as far as we know):
  • Isolated refrigerator compartments with separate doors (physical distribution: improved cooling)
  • Small shelves on the outer part of the door (spatial distribution: for spices, etc.)

Example 2:

• Existing service: postal service 
• Components of the service: service counter, stamps, packages, postman, post office, envelopes, mailboxes, registered mail…
• Improvements that have already been made:
  • Separate lines for packages and registered mail (spatial distribution: efficient service)
  • Mailboxes distributed all over the country (physical distribution: instead of a single mailbox at the post-office)
• Improvements that have not yet been made (as far as we know):
  • Buying stamps and sending letters through ATMs (physical distribution: convenience and accessibility)
  • Take-away registered mail (spatial distribution: the addressee goes to the post-office to pick it up. This allows for cheaper service, sparing the postman from physically delivering the item)
    
• For a description of the Distribution thinking tool, along with other tools, read the article on Six Thinking Tools

Telephone exchange with "satelites"

For the past year Panasonic, with other manufacturers following it, is offering telephone systems that include a wireless exchange (which looks more or less like a regular phone), which supports up to 8 "satelite" phones. The exchange is connected to the wall phone socket, and it transmits over a 2.4Ghz frequency (up to 50 meters away!). The "satelite" phones get the calls directly from the exchange, allowing for the "base" of each "satelite" to be simply a charging device (not requiring a connection to a wall phone soccket).

Each "satelite" may accept incoming calls, transfer calls to other "satelites" or to the central unit. Each "satelite" has its own voice-mail, allowing for a personalized message, saving and transferring incoming messages (all recorded messages are actually saved on the central unit). This is an ideal solution, offering reasonable sound quality, for small offices and private homes: it saves the use of multiple wires, and is cheaper the regular telephone exchanges. Advanced systems are able to recieve and route 2 or even 4 phone lines (to a single central unit and from it to each satelite!), and at higher frequencies (5.8Ghz).

The principle of distribution is clearly demonstarted in the "satelite" phone system, as most resources and functions (line connection, voice mails, call routing, "smart brain") have been concentrated at the exchange, while the satelites are a simple cordless phone holding calls to and through the central unit alone.

• For additional information: see the Panasonic website.

Innovation ideas for business cards

The following ideas were developed using various thinking tools, and do not exist at present (to the best of our knowledge):

1. A uniform company business card with empty spaces for writing a name, title, email

2. A parallelogram-shaped business card, to stick out of a rectangular cards stack

3. A dividable business card with a small tearable name and phone tab

4. A business and private card-in-one, printed back-to-back (given to clients who deserve personal contact)

5. A business card with a built in electronic chip transmitting information to Outlook

6. A bussinss card with empty lines on the back (to help the reciever write details about the owner of the card)

• Articles on Systematic Innovation 
• We will be glad to read your comments and suggestions

Board Games

Amir Elion, our Training Manager for the past few months, has brought with him to ZOOZ a new training field in which he is one of the leading experts in Israel and the world - management workshop combining board games exercises. During these workshops participants play in unique board games, and through them improve their skills in teamwork, strategic and tactical thinking, and more. The methods combine experiential learning and instructive management insights.

ZOOZ now offers inner-organization workshops in this format, including Improved Decision Making (in personal and group decisions) workshops, Functioning Under Continous Pressure workshop and various other subjects - including tailored workshops for your specific needs and requests.

• For further details please  contact us
• Further information on Amir Elion may be found in About ZOOZ Team page.

Post-it Notes

Yellow Post-it stickers by 3M are in common use in almost every office, and were developed twenty five years ago. Several years back, in view of the increasing usage of PCs, 3M decided to develop "PC stickers". The result is Post-it Notes software, allowing users to place "floating" notes (yellow, of course), on their PC desktop, write (or cut and paste) memos in them, include internet hyperlinks, pictures and even bell-ring reminders at desired times, attach a note to a document (e.g. MS Word), and print desired notes. The Lite version of the software is available free at the 3M website, and we find it quite usefull and easy and user friendly.

Advanced versions of the software include add features and functions. The Standard version also has a message board, keyword note search, internet note sending and recieving, reminders list management and note templates. The Professional version includes all of the above features plus an option for handwritten notes (requiring an electronic slate or pen), conversion of handwriting to typed text, and LAN distribution of notes over the organization's Intranet.

• For a free download of Post-it Notes Lite on the 3M Website click here.
• Read the history of Post-it stickers here.

Extreme Result

One of the advantages of using logical patterns for creating advertisments is that the same logical pattern may be used again and again in a given campaign, thus producing a whole series of interesting, noticeable ads, conveying the same message without being boring.

In the logic of extreme result , demonstarted here in two seperate ads from the same campain, one shows an extremely exaggerated result of a product benefit.

In the top ad, the driver of a massive lawnmower is gazing at a women wearing a Wallis outfit, not noticing that he's about to run over a man reading a book in his path. Surely an extreme image of the commercial message: "Wallis - Dress to Kill". Incidently, the book that the man is reading, in case you were wondering, is Pulp Fiction.

In the second ad a subway ticket conductor is about to lose his head, as he is drawn to another women wearing Wallis. Similarly, other ads in this series show men about to lose there heads as a result of Wallis clothes (for example - a man's throat about to be cut be a barber fascinated by a women wearing a Wallis dress passing his shop window). The combinatin of grotesque extremes and campain consistency, allows the advertisers to drive a (literally) sharp message through.

• Source:   Wallis - Dress to kill. Bartle Bogle Hegarty, London. Steve Hudson, Victoria Fallon, Bob Carlos Clarke.  
• For information on creative advertising work is on page 5 of  our training description (Hebrew, PDF file)