Comments on: Sometimes Less is More http://pebblecreekpartners.com/blog/2009/06/sometimes-less-is-more/ www.pebblecreekpartners.com Fri, 27 May 2011 12:59:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Tom Simeone http://pebblecreekpartners.com/blog/2009/06/sometimes-less-is-more/comment-page-1/#comment-21 Tom Simeone Tue, 02 Jun 2009 19:07:10 +0000 http://pebblecreekpartners.com/blog/?p=389#comment-21 This sounds like more of the pendulum swing sort of reasoning. It is common to hear someone espouse the wisdom of focusing on core competencies when confronted with what appears to be a daunting array of offerings. Conversely, one can also espouse the use of diversification to expand appeal and decrease risk resulting from over reliance on too few areas. Witness the companies suffering from having solely supplied the automotive industry. I think what is paramount is the culture of the company. There are companies that succeed brilliantly with only a single focus, Southwest Airlines, for example. Others succeed by existing in many markets and product spaces, Hewlett Packard and GE to name just a couple. But the truly brilliant are the ones that can successfully reinvent themselves. I believe that Nokia is one of the best examples of this. Why does Culvers succeed with its diverse menu? As you said, because they seem to have mastered the art of hiring and training their folks, as well as keeping them customer oriented. I never feel rushed at a Culvers and that's what's important. Compare that to Portillo's with a menu equally as daunting, but where someone is immediately asking me what I want to order long before I've actually reached the registers to place my order. Given the choice, I always choose Culvers. Portillo's people are usually as friendly and competent, but, at Culvers, I never feel rushed. This sounds like more of the pendulum swing sort of reasoning. It is common to hear someone espouse the wisdom of focusing on core competencies when confronted with what appears to be a daunting array of offerings. Conversely, one can also espouse the use of diversification to expand appeal and decrease risk resulting from over reliance on too few areas. Witness the companies suffering from having solely supplied the automotive industry.

I think what is paramount is the culture of the company. There are companies that succeed brilliantly with only a single focus, Southwest Airlines, for example. Others succeed by existing in many markets and product spaces, Hewlett Packard and GE to name just a couple. But the truly brilliant are the ones that can successfully reinvent themselves. I believe that Nokia is one of the best examples of this.

Why does Culvers succeed with its diverse menu? As you said, because they seem to have mastered the art of hiring and training their folks, as well as keeping them customer oriented. I never feel rushed at a Culvers and that’s what’s important. Compare that to Portillo’s with a menu equally as daunting, but where someone is immediately asking me what I want to order long before I’ve actually reached the registers to place my order. Given the choice, I always choose Culvers. Portillo’s people are usually as friendly and competent, but, at Culvers, I never feel rushed.

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