The Myth of Excellence

About the Author

Fred Crawford and Ryan Mathews bring a wealth of experience and insight into the world of consumer behavior and business strategy. Fred Crawford is an executive vice president with Cap Gemini Ernst & Young, one of the world's foremost management consulting firms. His extensive background in consulting has allowed him to work with a diverse range of clients, helping them to identify and implement effective business strategies. Ryan Mathews is a futurist with FirstMatter, a consultancy that specializes in forecasting and strategic planning. Together, they combine practical business acumen with visionary thinking, making them uniquely qualified to address the challenges faced by modern businesses.

Main Idea

The central premise of "The Myth of Excellence" is that companies cannot excel in every area of business. Instead of trying to be the best at everything, companies should focus their efforts on a few key attributes that matter most to their customers. Crawford and Mathews argue that businesses need to understand what their customers truly value and then tailor their strategies accordingly. By doing so, companies can build stronger relationships with their customers and achieve greater success.

Table of Contents

1. Align Commerce with Values
2. A Conceptual Model for Consumer Relevancy
3. Price Can Be a Major Attribute - But Not the Only One
4. Service with a Smile?
5. Access: Physical and Psychological
6. Product Bandwidth: Why 'Good' is Good Enough
7. The Experience Factor

Align Commerce with Values

In today's marketplace, consumers are not just looking for the best products at the lowest prices. They seek businesses that align with their personal values. Crawford and Mathews identify three key societal changes driving this shift: societal devolution, increased stress and busyness, and the proliferation of intrusive information and communication technologies. These factors have led consumers to crave more meaningful and value-driven interactions with businesses.

"Consumers are looking for values, not just value. They want recognition as human beings, not just a 30 percent discount." - Fred Crawford and Ryan Mathews

To align commerce with values, businesses must understand and address the fundamental human values that their customers hold dear. These values have become the contemporary currency of commerce, and companies that can integrate them into their offerings will find themselves better positioned to capture market share. Human values determine commercial value, and while inferior product quality will not be tolerated, addressing human values offers greater opportunities for differentiation, branding, and building loyalty.

Key Societal Changes

• Societal Devolution: Traditional institutions are less able to reflect fundamental human values. People seek out commercial institutions that build those values into their offerings.
• Increased Inability to Keep Pace with Daily Life: Rising expectations and increasing stress make it harder for people to keep up, leading them to value businesses that help them manage their lives better.
• Proliferation of Intrusive Technologies: Constant exposure to information and commercial imagery has left consumers better informed but less aware, increasing their desire for authentic and value-driven interactions.

Aligning the Commercial Context

Businesses need to align their commercial context with human values to achieve consumer relevancy. This involves recognizing that:

• Human values are the contemporary currency of commerce.
• Human values determine commercial value.
• Values are more important than value to consumers.

With these principles in mind, companies must focus on five key attributes in their business transactions: Price, Service, Access, Experience, and Product. Attempting to excel in all five attributes is unrealistic; instead, companies should select one primary attribute to dominate, complemented by a secondary attribute, while maintaining acceptable standards in the others.

Kmart's High Fashion Faux Pas

An illustrative example is Kmart's attempt to introduce higher-priced Gitano designer jeans. This move failed because consumers did not believe designer clothes could be sold at Kmart prices. It damaged both Kmart's and Gitano's reputations. This highlights the importance of aligning business strategies with consumer perceptions and values.

A Conceptual Model for Consumer Relevancy

Crawford and Mathews present a three-level hierarchy of customer relationships, known as the Conceptual Model of Consumer Relevancy. This model outlines the progression from mere acceptance to active seeking of a company's products or services.