Escape Velocity by Geoffrey Moore addresses the fundamental issue of driving deep innovation and value realization in your company not by some new silver bullet but by the hard work required to free your company's future from its past. Moore's central premise in this well written, actionable and highly recommended book, is that companies have a structural bias for investing in things today that cause it to starve out the new products and services that will generate growth in the next 2 -3 years.
Moore is a well-established innovator, thinker and marketing expert in the Silicon Valley. His prior books like Crossing the Chasm, Dealing with Darwin, etc. are foundational in the tech industry. This book leverages these prior works, but it does not require you to have read them. Suggestion if you are looking to read a companion work I would suggest Crossing the Chasm as it is related to the topics discussed in Escape Velocity. This book is not a rehash of his market adoption model. Rather it is a new set of tools concerning how you think about, develop and execute new strategies that break you out of last year plus 10% thinking.
What makes this book highly recommended is that Moore offers a broad set of tools that work outside of tech to give executives and leaders real tools that they need right now. This book is a model for a business book that is actionable, practical and deep enough to help you apply the ideas while still being engaging and interesting.
The book organizes itself around a hierarchy of powers that together shape a market, companies competing in that market and the products and services they offer in that market. The powers are:
Category Power - the demand for a class of products, for example smart phones, fuel-efficient cars, or energy bars.
Company Power - the relative status and prospect for your company compared with peers. For example: Nokia vs. Samsung, Honda vs. Ford, Cliff vs. Kashi
Market Power - the company's power relative to a market segment, for example Subway in Quick Service Restaurants.
Offer Power - the demand for a product or service relative to reference competitors. The classic here is Whopper vs. Big Mac.
Execution Power - the ability to outperform competitors under equal conditions
The remaining chapters in the book concentrate on each of these powers, what they are, how they work, tools for applying them and at least two specific case studies that illustrate their importance. Put all of this together and you get a powerful and actionable playbook for creating new market strategies.
Moore does surprisingly little pontification on market strategies, something common in other marketing related books. Instead he shows you via 13 tools that you can use found in each of the powers. To give you an example of the completeness of this book, here is a list of the tools it contains:
- Category maturity lifecycle
- Growth/Maturity Matrix
- Horizon model
- Competitive separation
- Two-business architecture model
- Crown Jewels model
- Nine point market strategy framework
- Retain or innovate model
- Six levers model
- Price/Benefit model
- Core/context model
- The arc of execution
Listing all of these models may give the impression that the book is more of an encyclopedia or compendium than a book that makes an actionable argument. Nothing could be further from reality. Moore uses his experience, the central thesis of the book and case studies to describe why certain things have happened, why leaders made different decisions and the results of those decisions.
Moore finishes the book with a discussion of how you use these tools to transform you execution, vision or strategy. This brings the toolset together and demonstrates that these tools work in practice rather than in theory.
Escape Velocity is a culmination of Moore's other works. Rather than simply restating them in today's context, Moore is sharing the fundamental tools leaders can use to develop and execute their company's strategies. This is one of those rare books that should be purchased, studied, annotated and tried in your company. Not every tool will fit, but the book gives you enough support such that you can make that judgment for yourself.
This sounds like a gushing review, this book has been one of the best I have read in 2011, but it does have some flaws. The examples and cases concentrate on high-tech, which may turn off some. The requirement for a leader that is willing to make asymmetric investments in new products and services is true, but under developed in the book. The book covers Moore's personal experience, which will make some see it as a digital infomercial. I believe these weak points exist, but this book is more than worth your time and attention.
A suggestion, buy the hardcopy as you will be making notes throughout the book, dog earing pages, etc. I read it on an eReader, which is great, but now using it as a reference is not the same as a hard copy. You will use this book as a future reference.
Highly Recommended for any business executive who feels that their current strategy has lost its potency, punch and ability to drive sales