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Gary Lynn & Richard Reilly

Blockbusters

Great companies succeed by continually producing great products. Failing to do so leads to decline. A 10-year study of over 700 product teams found 5 key practices consistently used by successful teams: senior management commitment, compelling vision, prototyping, collaboration under pressure, and information exchange. All 5 practices must be implemented together for success. These practices work regardless of company size or budget; the differentiator is strictly adhering to them. Implementing these 5 practices makes product failure virtually zero. Creating blockbuster products that transform industries and set new standards requires diligently applying all 5 practices. There are no shortcuts to launching revolutionary products.

Blockbusters
Blockbusters

book.chapter Leadership commitment

Blockbuster teams achieve extraordinary success because senior managers take an intimate, hands-on role guiding every aspect of new product development. Unlike the concept of empowerment, where teams are given autonomy and resources to self-direct, blockbusters require active top-down leadership clearing obstacles, solving problems, providing expertise, and ensuring alignment across the organization. There are several ways CEOs and presidents embed themselves to shepherd nascent ideas into game-changing innovations. They may personally manage all details as project leader, from schedules to prototypes. Their technical knowledge can provide guidance when challenges arise. As coach, they motivate through tough calls, getting the most from every team member. Or they act as champion - arranging funding, promoting the effort, and eliminating barriers. The specific role matters less than their active commitment. Such top-down involvement can occur naturally when the firm faces crisis or consists solely of the development team. But even in stable, complex organizations, senior leaders must create and communicate vision while providing air cover for teams to operate unencumbered by bureaucracy. As business gurus Gary Lynn and Richard Reilly note, lack of executive engagement dooms innovations to irrelevance; blockbusters require leaders clearing the path. Consider the toothpaste market, long dominated by Crest since 1962. In the mid-1980s, Colgate’s CEO challenged scientists to formulate a paste providing enduring dental protection. A breakthrough came in 1987 when an antibacterial agent was developed that adhered to gums and enamel between brushings. Sensing potential for a “blockbuster,” Colgate launched overseas, naming it Colgate Gum Protection. But sales disappointed. President Bill Shanahan and CEO Ruben Mark ran market tests, finding the branding emphasized disease over benefits and lacked credibility. They reformulated messaging, renamed it Colgate Total, and committed substantial resources to propel it globally, all while staying intimately involved. Though day-to-day leadership was delegated to a dedicated director, the executives’ hands-on vision, enthusiasm and elimination of barriers energized success. By 1997 Total launched in over 100 markets. Two months after entering the competitive U.S., Total captured 10% market share. Colgate overtook Crest for global leadership in oral care products, which Total has retained for 25 years since. The executives’ early, active support was credited as the difference-maker in interviews with launch director Jack Haber and VP Kathleen Thornhill. Unlike most Colgate developments, Total’s c-suite champions expedited decisions and marketing adaptations that empowered the team to achieve an historic result. The Total example shows why blockbusters demand executive-level guidance surmounting inertia. Lynn and Reilly contend empowered teams rarely produce game changers; significant innovations require leaders clearing the path. Though counterintuitive to some management philosophies, blockbuster success correlates with intimate, active c-suite involvement from vision to execution.

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