The sense in Philips’ simplicity
juni 22nd, 2009
People often ask us how generic ideas like performance, reliability or problem solving can be the basis for strategic differentiation. One part of the answer is that the idea you choose needs to be true, relevant and high value across your value chain. However, differentiation depends on how thoroughly and uniquely you execute on the idea. In fact, the simpler the idea is the better, and nothing illustrates the power of simplicity better than Philips.
Josephine Green, one of the primary drivers behind Philips’ repositioning, once told Mark and me how it came about. She described the research, the insights and the link to the business strategy. But the most important thing she said was that the focus on simplicity felt right to everyone involved in the process. They where putting people in the center and taking a very human view of the future.
That leads to the other part of the answer. Positioning strategy isn’t science. For most companies, there is more than one right direction. The important thing is that people believe in the direction you choose.
This video describes the sense in Philips’ simplicity:
Skrevet af Michael Sherain, juni 22nd, 2009 i kategori Philips, Positioning Strategy
Indeed simplicity is all about creating relevant solutions for people. The people-centric approach was seeded within design, and then brought to a companywide level by our then new Chief Marketing Officer and his team. The thing about relevancy however is that it changes over time. What was relevant in the 20th century is less relevant now. Our thinking, our institutions and our behaviour made sense in the 20th century but increasingly make non-sense in the 21st. Conditions and trends have changed and we need new ways of thinking and doing if we are to survive well and prosper. In this critical period of transition, our brand Sense and Simplicty is a call not only to relevancy in terms of simplicity, but also in terms of sense making. Making sense means identifying relevancy and meaningfulness for the future, which also explains why we give so much attention across the company to collaboratively understanding and integrating society, culture and people research into our strategic and innovation thinking. You are right we are on a journey, some of which is unclear and will emerge as we travel and learn along the way. I am personally stimulated and energized by this journey and by the purpose behind our brand of Sense and Simplicity
Your comment reminds me of the discussion we had in our team about the combination of “sense” and “simplicity,” and the relative importance of each. In creating this first version of Philips’ Quadric I think we downplayed the “sense” too much. I hadn’t seen it put so clearly before. In retrospect, I can see evidence of “sense” and can see how big a differentiator it will be as you cultivate it. Simplicity is a very accessible, visible idea. Sense, by its very nature, requires more consideration.
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