Shaun Smith

Some years ago, Gallup conducted a survey of 6,000 consumers and found that the fifth “P” of the marketing mix, people, is by far the most important determinant of customer loyalty to brands than the other “P’s” of Place, Promotion, Product and Price. For example, in motor retailing Gallup found that customers who feel their dealer representatives “stand out from all others” were ten to fifteen times more likely to choose that same make of vehicle for their next purchase. This same ratio held true for the airline industry, while in the banking sector the influence of people is even greater with customers saying they were ten to twenty times more likely to repurchase from organizations with outstanding employees. Even in telecommunications employees are three to four times as important in driving loyalty as other factors.

While this realization is not revolutionary, when it happens it is often a surprise. Indeed, sometimes it is newsworthy. For example, an account executive...

This is the time of year when health-club memberships soar. During the post-Christmas and New Year holidays unfit, over-weight business executives determine that they are going to shed those pounds and get in shape for the coming year. But what about the companies they run? How often do executives stand back and take a critical look at how they are running their business? This is our guide to setting some new-years resolutions and getting your business in shape for the new financial year.

1. Start with the big picture

Annual plans always include goals and objectives for the year but how often do they start with a review or restatement of the company purpose? Increasing market share may be desirable but will it make a difference? Opening up operations in a new geography may be an important objective but without answering the basic question “Why are we in business?” it is simply a tactic. The best organisations set their sights higher and determine a business purpose...

Why are Virgin, The Banyan Tree, Harley-Davidson, Amazon.com, First Direct, Pret A Manger and Tesco all 'uncommon'? The answer is that their founders and many of their senior directors share an approach to business that is unusual in industry today. We admire these organisations because they have strong brands, enthusiastic customers, proud employees and their own unique way of doing things.

Andy Milligan and I set out to find out what makes these brands unique and their companies ‘tick’. The result is a book, called ‘Uncommon Practice – People who deliver a great brand experience’ which tells the story of nineteen unique brands in the words of their executives. We found that their approach to business is not the norm, that these companies often do things that are unusual and even defy conventional business wisdom, ‘daring to be daft’ to paraphrase Richard Branson. But what gives them the confidence to operate in this way and what is it that their leaders do that is...