hidden champions the vanguard of globalia · 11/17/2016 · hidden champions –the vanguard of...
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www.simon-kucher.com
8th Global Peter Drucker Forum
Hidden Champions – The Vanguard of Globalia
Vienna, November 17, 2016
Prof. Dr. Dr. h.c. mult.Hermann Simon
Vienna officeSchubertring 14/Top 5. OG1010 Vienna, Austria
Bonn officeWilly-Brandt-Allee 1353113 Bonn, Germany
@HermannSimon
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Per Capita Exports 2006-2015
Country
12 637
29 564
42 447
56 146
59 036
69 122
81 163
83 606
91 463
166 475
China
Russia
USA
Japan
Spain
UK
Italy
France
Korea
Germany
US-$
stats.oecd.org
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Per Capita Exports 2006-2015: Small Countries
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658 111
385 268
352 840
237 073
190 941
156 000
Singapore
Belgium
Netherlands
Switzerland
Austria
Slowenien
US-$Country
5
USA (134)
Japan (52)Korea (15)Italy (9)
Spain (9)
China (103)
Belgium (2)Switzerland (15)
0
500
1 000
1 500
2 000
0 50 100 150
France (29)UK (25)
Germany (28)
Austria (1)
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Do Large Companies Explain Export Performance?
https://www.destatis.de
Fortune Global 500 Corporations (2015)
Exports 2015 in billion US-$
Russia (5)
6
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0,1
0,2
0,5
1,1
1,1
1,2
1,2
1,7
1,7
1,8
2,7
2,8
3,4
5,4
13,9
16,0
19,5
China
Spain
South Korea
UK
France
USA
Italy
Netherlands
Japan
Belgium
Finland
Norway
Denmark
Sweden
Switzerland
Germany
Austria
Hidden Champions per Million Inhabitants
Number of Hidden Champions per million inhabitantsCountry
7
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Innovativeness (here measured by European patents)
Number of European patents 2006-2015 per million inhabitants
4
5
23
26
86
280
309
375
427
596
705
867
880
1 079
1 627
1 649
3 077
Russia
China
Greece
Portugal
Spain
Korea
United Kingdom
Italy
USA
Belgium
France
Austria
Japan
Netherlands
Germany
Sweden
Switzerland
Country
9
6
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Largecorporations
HiddenChampions
Patents per 1,000 employees
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Patents of Hidden Champions vs. Large Corporations
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Innovation in Autonomous Driving
Patents registered worldwide since 2010
Source: Handelsblatt, November 9, 2016, p. 29
Total: 2828 Suppliers: 1035
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Innovation in Autonomous Driving
Patents from Germany registered worldwide since 2010
Source: Handelsblatt, November 9, 2016, p. 29
1646 (58%)
from Germany850 (82%)
from Germany
Total: 2828 Suppliers: 1035
15
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Strong Manufacturing Base
Source: Institut der deutschen Wirtschaft, IWD, Ausgabe 2, 12.01.2012
-15
-10
-5
0
5
10
15
5 10 15 20 25 30
Germany
JapanAustria
Switzerland
Italy
Belgium
Spain
Portugal
Denmark
USA
France
UK
Greece
Share of manufacturing in GDP in %
Trade balance (exports minus imports) in % of GDP
ChinaKorea
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Lesson 1
Business success in Globalia does not primarily depend
on large corporations but on mid-sized world-class
businesses like the Hidden Champions. Innovativeness
and a strong manufacturing base are the factors of their
success.
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The Strategy of the Hidden Champions
Focus
Strong leadership with ambiti-ous goals
Closeness to customer
Co
mp
etitive
a
dva
nta
ge
s
Glo
ba
l o
rie
nta
tio
n
High performance employees
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Chemetall
Chemetall is the world market leaderin special metals like lithium and cesium.
"The goal of Chemetall is the worldwide
technology and marketing leadership."
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Rosen-Group is the world market leader in pipeline inspection systems.
"It is our objective to be the world’s most competitive
provider. We go far beyond present market require-
ments. We envision the market’s future needs."
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Deep Leadership: Rosen-Group
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Uhlmann is the world market leaderin packaging systems for the pharmaceutical industry.
"We always had one customer and will only have
one customer in the future: the pharmaceutical
industry. We only do one thing, but we do it right."
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Uhlmann
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Flexi is the world market leader in retractable dog leashes.
"We only focus on one thing,
but we do it better than anyone else."
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Flexi
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Globalization: Kärcher
World market leader in high pressure water cleaners
107 subsidiaries
Number of company foundations and acquisitions
2016
23
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Closeness-to-customer: The Biggest Strength of the Hidden Champions
8 %Large corporations
38 %Hidden Champions
Closeness-to-customer
Employees with regularcustomer contact
88.7 %
- 24 -
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Competitive Advantages
10
8 8
Advice Systems integration Ease of use
Change in last 10 years
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Lesson 2
Success always begins with highly ambitious goals.
There is no substitute for entrepreneurial ambition.
Only focus leads to world class. The Hidden Champions
combine focus with globalization, which is their primary
growth booster. Closeness-to-customer is their biggest
competitive advantage.
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Employees
"More work than heads"
High performance cultures
High qualification
Low turnover
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Higher Qualification
9%
19%
10 years ago today
Share of university and college graduates
30
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Employee Turnover Rates
Source: Hernstein-Institut/US Department of Labor/INSEE (Frankreich), Wall Street Journal Europe, 4. Juni 2013, S. 15
2,7%
5,3%
7,3%
8,8%
9,0%
11,0%
19,0%
Hidden Champions
Daimler
Germany
Switzerland
Austria
France
USA
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Leaders
Leadership
authoritarian in the principles
participative, flexible in the details
Leaders come young into power
More women in top positions
Very high continuity of the leaders
Hidden Champions: 20 years
Large corporations: 6 years
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Lesson 3
The Hidden Champions have "more work than heads"
and high performance cultures. Turnover is extremely
low. They have strong leaders whose leadership is
authoritarian in the principles but flexible in the details.
Continuity is very high.
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Simon-Kucher & Partners
Focus: Pricing, marketing, sales
Goals: Market leadership and growth
Presence: Global
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Best Consultancy in Marketing, Sales, Pricing
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1 Simon-Kucher & Partners
2 Boston Consulting Group
3 McKinsey & Company
manager magazin
Source: manager magazin survey of top managers in Germany, August 2007 and 2011/IMB
Source: brand eins Thema/Statista survey of 1,426 partners and project leaders from consulting firms and 1,300 C-level managers from German companies, May 2014
Marketing and sales
Simon-Kucher & Partners
Boston Consulting Group
McKinsey & Company«««
Marketing and pricing
««««
Simon-Kucher & Partners
Boston Consulting Group
McKinsey & Company«««
Sales
««««
brand eins Thema
.
.
.
.
.
.
«««««
«««««
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World Leader in Price Consulting
Simon-Kucher is world leader in giving advice to companies on how to price their products.
BusinessWeek
No firm has spearheaded the professionalization of pricing more than Simon-Kucher & Partners.
William Poundstonein Priceless
In pricing you offer something nobody else does.
Professor Peter Drucker
No one knows more about pricing than Simon-Kucher.
Professor Philip Kotler
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Employees
Revenue 2015: €209 million
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Growth
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Global Presence: 33 Offices
Germany,Bonn
Switzerland, Zurich
Italy,Milan
France,Paris
USA,San Francisco
GermanyMunich
Japan,Tokyo
Turkey,Istanbul
Germany,Frankfurt
USA,New York
Germany,Cologne
USA,Boston
England,London
AustriaVienna
USA,Atlanta
Denmark,Copenhagen
Netherlands, Amsterdam
Spain,Madrid
China,Beijing
Singa-pore
Australia,Sydney
Poland,Warsaw
UAE,Dubai
Chile,Santiago de Chile
Brazil, Sao Paulo
Belgium, Brussels
Luxem-bourg
Canada,Toronto
Spain,Barcelona
USA,Silicon Valley
Switzerland, Geneva
Germany,Hamburg
Sweden,Stockholm
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Hidden Champions Worldwide
Spain1997/2010
Hungary2010
Italy2001/2007/2011
Brazil2003
India2009
Egypt2008
Germany1997/2007/2012
USA1996/2009
Lithuania2009
Netherlands 1997/2009
Slovenia2010
Japan1998/2012
Sweden2013
Vietnam2013
Korea1997/2008/2014
Poland1999/2009
Serbia2007
Czech Rep.2010
Russia2005/2014
Turkey1999/2014
France1998/2012
Taiwan1996/2004/2013
China1997/2000/05/09/15
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Management Thinkers 2016
The most influential management thinkers in the German-speaking countries 2016.
www.managementdenker.de, Internet Survey, n=600
6%
7%
8%
15%
19%
26%
Fredmund Malik
Günter Faltin
Jack Welch
Michael E. Porter
Hermann Simon
Peter F. Drucker
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Hermann Simon
Professor Simon has published over 30 books in 25 languages, including the worldwide bestsellers Hidden Champions (Boston 1996, cover storyof BusinessWeek in 2004) and Power Pricing (New York 1997), as well as Manage for Profit, Not for Market Share (Boston 2006). His book HiddenChampions of the 21st Century, Success Strategies of Unknown World Market Leaders (New York 2009) investigates the strategies of little knownmarket leaders. His newest book is Confessions of the Pricing Man, published by Springer, New York. His Hirsch-Index is 49.
Simon was and is a member of the editorial boards of numerous business journals, including the International Journal of Research in Marketing,Management Science, Recherche et Applications en Marketing, Décisions Marketing, European Management Journal as well as several Germanjournals. Since 1988, he regularly writes columns for the business monthly Manager Magazin. As a board member of numerous foundations andcorporations, Professor Simon has gained substantial experience in corporate governance. From 1984 to 1986 he was the president of theEuropean Marketing Academy (EMAC). Simon is co-founder of the first Special Purpose Acquisition Company (SPAC) listed on the German StockExchange in Frankfurt, which acquired Exceet Group S.E. in July 2011.
A native of Germany, he studied economics and business administration at the universities of Bonn and Cologne. He received his diploma (1973)and his doctorate (1976) from the University of Bonn. Simon has received numerous international awards and holds honorary doctorates fromIEDC Business School of Bled (Slovenia), from the University of Siegen (Germany) and from Kozminski University Warsaw (Poland). He is ahonorary professor at the University of International Business and Economics in Beijing.
Hermann Simon is chairman of Simon-Kucher & Partners Strategy & Marketing Consultants with offices in Amsterdam,Atlanta, Barcelona, Beijing, Bonn, Boston, Brussels, Cologne, Copenhagen, Dubai, Frankfurt, Geneva, Istanbul, London,Luxembourg, Madrid, Milan, Munich, New York, Paris, San Francisco, Santiago de Chile, Sao Paulo, Singapore, Stockholm,Sydney, Tokyo, Toronto, Vienna, Warsaw and Zurich. Simon is an expert in strategy, marketing and pricing. He has anextensive global range of clients. In the German language area he was voted the most influential management thinker afterthe late Peter Drucker.
Before committing himself entirely to management consulting, Simon was a professor of business administration andmarketing at the Universities of Mainz (1989-1995) and Bielefeld (1979-1989). He was also a visiting professor at HarvardBusiness School, Stanford, London Business School, INSEAD, Keio University in Tokyo and the Massachusetts Institute ofTechnology. From 1995 to 2009 he was CEO of Simon-Kucher & Partners.
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