Learning innovation from the masters

DSN Retailing Today, April 11, 2005 by Sandra Kennedy

If you asked the leaders of the top retail companies the secrets of their success, what would they say? We just found out.

The Retail Industry Leaders Association did just that at its annual Leadership Forum a few months ago. The Leadership Forum, an exclusive senior executive education and sharing event, occurs each January and brings together about 100 retail industry chief executives to compare ideas and learn from industry experts and one another. One of the audience-response questions that RILA leaders posed to industry captains was this: "Indicate the approach your organization has most frequently used to drive growth."

Think for a moment about what your answer might be, had you been in that room.

Technology didn't make the grade; while ceos and coos think that technology is very important, only 4% attributed their corporate growth to IT. Expansion into emerging markets isn't the silver bullet either; only 7% gave that the credit. And simply being big isn't enough; only 15% said that their sheer size drives growth.

The next most popular answer, not surprisingly, was consumer marketing, with a healthy 28% response. (It's reasonable to assume that marketing would drive sales.) But the most popular answer, with 46% of the responses, was "innovation." Most of the respondents thought that the most important thing they do is create new ideas.

Walt Disney famously said, "It's kind of fun to do the impossible." And that's what RILA members do every day. They pioneer new formats, try out new processes, create new shareholder value and launch new business models to grow profits. It may seem counterintuitive, but the biggest and most profitable companies actually retain their positions by continually doing things a little differently.

This might not be valuable to know if it weren't for the fact that RILA's members are so willing to share their learnings with others. They'll gather Oct. 9-11 in Chicago at the RILA Annual Leaders Exchange (ALEx) to share the secrets to better performance. They'll sit down in casual discussions to compare notes on what drives long-term performance and the factors that enhance the corporation's DNA. They'll network over breakfast, meet and greet over cocktails and hand out a lot of business cards to peers across the industry.

Retail has always been a competitive environment--and never more so than now. Despite this, the ALEx format--one of executive networking and idea sharing--has taken off. Product manufacturers and retailers gather in a no-booth environment to talk through the challenges and opportunities that shape the industry. Members of RILA's Leaders Councils weigh in on the factors that drive retail success. These fresh perspectives are particularly welcome in October, as retailers take a deep breath before the holidays begin.

Retailers who want to stay ahead of the competition are pioneering a collection of innovative techniques to build market share and gain advantage. And to get a glimpse of what others are doing, they gather at ALEx to recharge their batteries. Sometimes participants reveal the mechanisms they use to keep merchandise relevant, including shopping in the other stores that key customers shop in. Some find non-competitors to benchmark with. Some gain inspiration from innovation veterans who share battle stories. Some join us just to get out of the corporate cocoon and hear from folks who think differently.

Join us at this year's ALEx. Mark your calendar now for Oct. 9-11 in Chicago and watch the RILA Web site (www.retail-leaders.org) for details. ALEx is a valuable shortcut to the competitive intelligence that innovative retailers use to keep on top of this vast industry. Meet the leaders, soak up the inspiration and come away refreshed. We're looking forward to seeing you.