SEPTEMBER 2008

"In a time of drastic change it is the learners who inherit the future."

- Eric Hoffer, philosopher

TIPS FROM THE TOP

Michael Porter, globally renowned business strategist, says technology changes, strategy doesn't. Under this premise he tells us about five musts of a successful strategy:

1 The underlying principles of strategy have to be enduring, regardless of technology or the pace of change. If there are no barriers to entry, if customers have all the power and if rivalry is based on price, then the Net doesn't matter -- you won't be very profitable.
2 Sound strategy starts with having the right goal. The only goal that can support a sound strategy is superior profitability. If your goal is anything but profitability -- if it's to be big, or to grow fast, or to become a technology leader -- you'll hit problems.
3 Strategy must have continuity. It can't be constantly reinvented. Strategy is about the basic value you're trying to deliver to customers, and about which customers you're trying to serve. That positioning, at that level, is where continuity needs to be strongest.
4 Companies have to be very schizophrenic. On one hand, they have to maintain continuity of strategy. But they also have to be good at continuously improving.
5 Strategic management and continuous improvement have to be mutually reinforcing. Continuity of strategic direction and continuous improvement in how you do things have to be absolutely consistent with each other. The ability to change constantly and effectively is made easier by high-level continuity.
MILLION DOLLAR TALES
TRAVELOCITY
At a Glance
5,000 employees
Offers more than 6,500 vacation packages
$10 billion in travel services sales in 2007
Provides reservation information for more than 700 airlines, more than 50,000 hotels and more than 50 car rental companies

TRAVELOCITY

Founded in March 1996 by Terry Jones, Travelocity was the first online provider of consumer-direct travel services for leisure and business. Pioneering a new trend in the tourism business, in its first three months of operation, Travelocity reported 1.2 million visits and had 144,000 people register at the site. Travelocity grew from a strategy of offering compelling travel content and selling airline tickets, to allying with travel agents, and within four years they had built 12,000 customized websites to help agencies handle online bookings. By 2000 the company had over 21.6 million registered users and began a process of expansion outside of the US, starting with sites in Canada, Germany and the UK and most recently launching in Mexico and Argentina

Travelocity aims to differentiate itself through its superior level of customer service. It defines itself as the “customer’s champion” and has created its own Customer Bill of Rights which forms the basis of the company’s business strategy. The Bill sets out seven guarantees to its customers – from the right to best overall value, to the right to be inspired by your travel company. Constant innovation is also key to its success. Recent examples include a travel service tool for the I-Phone which includes a “hotels near me” service, together with an “Experience Finder” tool which won the Tourist Industry Association’s “Innovator of the Year” award. Today Travelocity not only maintains its position as a leader in online travel services, but does so through a commitment to innovation and a special focus on customer satisfaction.

DELVING DEEPER
Barton Biggs was voted #1 global investment strategist from 1996 to 2003 while at Morgan Stanley and is a legendary figure in the investment management community. Here, he writes about the current American economic situation and what he expects in the future (as seen in The Wall Street Journal).
Click here to download the PDF
 
MULTIMEDIA TOOLBOX
SIXTY SECOND INSIGHT
Muhammad Yunus, Nobel Peace Prize winner and founder of Grameen Bank, talks about his upcoming projects aimed at helping create a poverty-free world.
Click here to watch
PODCAST
Jeremy Siegel was the head of economics training at JP Morgan for over 15 years and is currently the academic director of the U.S. Securities Industry Institute. Here, he explains the keys to generating future returns on the stock market and the imperative of maintaining a free economy.
Click here to listen
RECOMMENDED READING

WHEN MARKETS COLLIDE: INVESTMENT STRATEGIES FOR THE AGE OF GLOBAL ECONOMIC CHANGE

Author: Mohamed El-Erian

“This book is an essential read for those who wish to understand the modern world of investing.”
- Alan Greenspan, Chairman of the Federal Reserve System from 1987-2006 and featured speaker at the World Finance and Economy Summit 2008.

ADVERTISING
HSM NEWS
HSM Launches “Inspiring Ideas” Blog

The newly launched “Inspiring Ideas” Blog is a place to share your thoughts, ideas and opinions on the current topics and issues that are making the “world go around”. With topics ranging from Business and Management to Current Issues and Opinion, the Inspiring Ideas Blog is a place to express your views and ideas with the rest of the HSM community and the world.

We invite you to come read our “Blogalicious” Blog posting at and be one of the first to leave us a comment telling us what you would like to see in future Blog postings!
The World Business Forum 2008 is less than a month away

The 2008 World Business Forum is happening on September 23-24 at the Radio City Music Hall® in New York and promises to be a spectacular event. With a lineup of 19 of the top business and world leaders as featured speakers and an expected audience of over 4,000 top executives, this year's event is the must-attend summit to gain new knowledge, network with other top influentials and advance your business forward.

To find out more about the World Business Forum 2008, including our current event lineup and agenda, click here.
UPCOMING EVENTS
September 23-24
New York City,
USA

WORLD BUSINESS FORUM
September 25
New York City,
USA


LEADING FROM YOUR STRENGTHS
Marcus Buckingham
October 14-15
New York City,
USA


WINNING NEGOTIATION STRATEGIES
William Ury
October 16
New York City,
USA


WORLD FINANCE & ECONOMY SUMMIT
Alan Greenspan, Martin Feldstein, Barton Biggs,
Jeremy Siegel
October 21-22
Boston, MA
USA


TWO DAYS ON MANAGEMENT
Jack Welch
WORLDWIDE
September 4
Mexico D.F.,
MEXICO

MARCAS & MARKETING
Kevin Roberts
September 23-24
São Paulo,
BRAZIL

FÓRUM MUNDIAL
DE NEGOCIAÇÃO
September 23-24
New York City,
USA

WORLD BUSINESS FORUM
September 25
New York City,
USA


LEADING FROM YOUR STRENGTHS
Marcus Buckingham
25 y 26 de Septiembre
Mexico D.F.,
MEXICO


EMPRESAS FAMILIARES
John Davis

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