Thursday, March 5, 2009

The More you Spit Out, the More you Innovate

Years ago TaylorMade’s golf equipment lagged behind these Japanese rivals, but now with what CEO Mark King calls “relentless innovation” consumers line up to purchase metal golf drivers that are at times $100 more than what rivals charge. This article in BusinessWeek details a couple of things Mark did to whip his company back into shape.

Mark quickly learned from his Japanese counterparts that they were able to lead for years because they turned out new products much more frequently. One of the first things Mark did was hire an executive from UPS in order to revamp their supply chain. The company was able to double the money spent on marketing within 5 years. King also spread the wealth of responsibility between all middle managers. Product development had been the responsibility of senior executives, but by spreading this out to 40 managers more could be done.

Do you agree with this philosophy?

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