Virgin’s recipe for business success
I’m Jayne-Anne Gadhia, Executive Chairman of the Virgin Money group of companies, and would like to jump in here following Richard’s last post on what Virgin does.
There are many ingredients that go into Virgin’s recipe for business success. In fact Richard’s new book, Business Stripped Bare, discusses some of these key factors - people, brand, delivery, social responsibility and innovation to name but a few.
Within the book, innovation is described as a driver for business. It allows us to do something fresh, keep the brand relevant, and push the boundaries of what’s possible.
One of the reasons I believe Virgin has been successful in so many diverse market places is because we think about innovation through product design, distribution, partnerships, marketing, pricing and service – as well as at industry level. Importantly, innovation the Virgin way is always about delivering customer benefit. We look at where consumers are being underserved then build businesses around them.
It is easy to think of innovation as technology or design led, but at Virgin we think about innovation in its broadest sense, tackling the status quo and shaking up cosy conventions.
Einstein said ‘it is impossible to solve a problem by using the same thinking that created it’ and that’s spot on. Innovation, both large and small, is imperative for sustainable value creation.
Years ago I remember Richard saying, ‘sometimes you just have to make potentially irrational business decisions in order to protect the brand.’ He was talking about the decision to reduce the price of airline tickets in Australia by 50%. At the time that struck me as an ‘interesting’ approach to business but I quickly realised this was just another form of innovation and disruption in a market place that needed a shake-up. The results speak for themselves.
One of the key things I have learnt from Richard over the past 15 years or so is always challenge. Challenge your business to innovate by asking the unaskable, challenge industry norms and always ask, why? And then more importantly, why not?
13 Responses to “Virgin’s recipe for business success”
Innovation: A recipe for success | MBA Geek - January 7th, 2009
[...] I concur with Jayne-Anne, who wrote the post, about how innovation is sometimes lumped together into the same camp where technology lives; but in reality can apply to anything that disrupts the status quo. Anything that prevents a process from following the same linear motion that has been running for days, months or years has the potential to provide you with competitive advantage. Don’t get me wrong, there’s always risk attached to change. But without change, challenge or questions a business stagnates, ends up living in the past and is doomed to failure (The recent demise of Woolworths is a case in point here). You can read the whole post by Jayne-Anne Gadhia here. [...]
Evgenij - January 7th, 2009
Thanx Virgin for what it does. Thanx Richard for his books - they are very inspiring.
I hope Virgin will come to Russia some day.
Greg - January 7th, 2009
This is so true and inspiring. Meeting challenges head-on expand the boundaries of what is possible.
NIck Bischoff - January 7th, 2009
How can anyone disagree with what Jayne thinks about Virgin and or about what Richard has to say?! Virgin is anything but “new”, or “unchartered”. In fact, they are the opposite; they live on the edge, they get dirty, and they constantly learn at such a high pace that they can afford to make mistakes along the way. I call it organized chaos. Keep the enemy guessing and you will always be one step ahead of them (or to the left, or sneaking up from behind). I like the business model of not having a business model other than to challenge the status quo, and to break the mold and make a better, more efficient effective mold. Thank you both for sharing your perspective on business and on Virgin.
Nancy Wu - January 8th, 2009
An inspiring recipe. :)
Khanyi - January 12th, 2009
Thank you Richard for this really interesting piece… I find it so relevant to where I am in my life right now… as I move into the actualisation phase of my vision and purpose in life, I find that pushing through the fear has been one of my biggest challenges. I am a media person through and through… so many times, people never really know what I do for a living, because I juggle different roles in the media with an almost uncanny ease - Radio, online media, magazine etc and I really do feel that if I ever did just one thing in life, I surely would die…
For a long time I saw it as a curse to be blessed with the talent to do so many things, and I even enquired of God if I should not just concentrate on one and everytime, I never get an answer for that prayer!
In 2006, I registered my Film and TV production company, got the proper registration papers, the Tax documentation - everything, but up until now, I hadnt used my company for its intended use…well, I also somehow put in a publicity division in there, and I used it to do some publicity work for a number of musicians who had asked me to be their publicist. But I now know beyond a shadow of a doubt, that this is where I need to be now, and that as I’ve done with my life up until now, I need to focus on what my purpose is and not try to be on the same journey as other people. God has gifted me as a writer/a creator of endless ideas across the media spectrum/an innovative thinker/he has given me a strong personality - boldness which I am sometimes scared of myself/he has gifted me as a speaker and from this point onwards, I claim this publicly, as I move into purpose…
Thank you for being unconventional Richard, having your Brand cut across different industries (by the way I work out at Virgin Active here in South Africa!) is really just a sign that people like you and me, who see more than just one thing, but many things that really do fit snuggly together, are not MAD! and even if we were, its okay!!
Today, as a sign of committment to moving into my purpose, I wrote on facebook today, calling on film crew. I stated that I dont have the money to pay them, but I will feed them on set and give them a copy of the film for their film show reel… I think this is a good deal. Without a plan, there can be no provision! So I’m really excited and nervous. I have no money to shoot my film, but I’m shooting next month!!!!! Thanks for the inspiration… I will continue coming here to read your blogs…
Ta!
Regards, Khanyi - film producer, writer and executive extraordinaire!!
Innovation: A recipe for success | Wcx - January 14th, 2009
[...] I concur with Jayne-Anne, who wrote the post, about how innovation is sometimes lumped together into the same camp where technology lives; but in reality can apply to anything that disrupts the status quo. Anything that prevents a process from following the same linear motion that has been running for days, months or years has the potential to provide you with competitive advantage. Don’t get me wrong, there’s always risk attached to change. But without change, challenge or questions a business stagnates, ends up living in the past and is doomed to failure (The recent demise of Woolworths is a case in point here). You can read the whole post by Jayne-Anne Gadhia here. [...]
Richard Branson ~ Business Stripped Bare | Richard Branson’s Official Website & Blog » Meet Heaven’s Angels rider - Helen Adipo - January 15th, 2009
[...] on recent posts about how innovation is a key factor in Virgin’s success, this principle is also fundamental to [...]
Ben Young - January 15th, 2009
Virgin frequently do what no one else will or often can’t do. This makes all their actions remarkable and thus ideas we want to talk about.
Karel Beelaerts van Blokland - January 20th, 2009
Dear Jayne-Ann,
Follow Mike Sanderson’s speedboat as an sailing fanatic. Completely agree with “Virgin’s recipe for business success”.
If you ever are looking for a possible takeover company te be renamed Vrigin Money in Holland I might know something.
Developped a highly innovative approach to asset management as most asset managers in the long run are not able to outperform their index-benchmark.
Our fund approach has incorporated re-insurance to lower risks.
Regards,
Dutchmen Capital
Karel Beelaerts
Entrepreneur- the Successful Rebel | Financial Freedom - February 5th, 2009
[...] Gadhia, Executive Chairman of the Virgin Money group of companies about Richard Branson, “One of the key things I have learnt from Richard over the past 15 years or so is always [...]
Stephen Chua - February 5th, 2009
There are some comments I no longer hear or see these days. I remeber when the name Richard Branson was synonimous with a “rebel”, albeit a successful one.
I wonder how many of those uppity snoots(pardon my French) who called him an ustart are still in business, especially with what’s happening to the banking carnage today?
I’d much rather be that successful rebel and wind up being the billionaire entrepreneur any day!
Hillary Deveaux - February 17th, 2009
Hi Richard
My name is Hillary Deveaux, I want to become a great entrepreneur like you. I’m a singer and I’ve been trying to get my music to the right people for some time however something is telling me I may need to start my own record label and push myself out there to the world. I’m a great singer however only I and a few people know that. I was inspired by your story about how you got started and It made me want to push harder. I’m presently climbing a few personl hills some i’ve alread climb and saw the promise land (my dream) and the hill I’m climbing now is rejection however I know after this climb I will be home free. I’m a dreamer and I know my big dream is about to come true. Your story like other has helped me pave the road toward my success!
Peace!!
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