SEATTLE, Wash. — Robbie Bach, former CEO of Microsoft Xbox, challenged PestWorld attendees to keep building their teams and developing innovative strategies, in Thursday’s opening general session sponsored by Syngenta.
Bach said that even though the pest control industry is a “behind-the-scenes business,” that doesn’t mean PCOs can stand still and not innovate. He cited the taxi driver industry as one that failed to innovate and consequently has lost/is losing considerable market share to driver service providers Uber and Lyft.
The key to creating a culture of innovation is having the right team and strategy in place. While working in the Xbox video game business Bach learned first-hand, from successes and failures,the value of having the right team and strategy.
Bach and his team were tasked with bringing the first version of Xbox to market in 1999. Because the process was rushed, the foundation for success was not in place. Specifically, (1) there was no strategy, other than to ship the product on time; and (2) there was a team problem – the group working on Xbox was fused together from all walks of life and numerous fields that weren’t always interconnected (A “sociological experiment gone bad” according to Bach).
Despite initial success in the U.S., the original Xbox was fraught with design flaws (e.g, cumbersome controller) and failed to capture the anticipated amount of market share, particularly overseas.
When it came time to launch the second version of Xbox, Bach assembled a team that was streamlined and on the same page, and he developed what he called the 3P Framework — a three-page statement of outlining the purpose, principles, and priorities that would drive the project.
Purpose – A one-sentence statement that Bach describes as “The North Star” to guide your business. For example, Microsoft’s purpose was to “have a computer on every desk in every home running Microsoft,” Bach said
Principles – The way you and your employees are going to work. This includes statements about how you are going to make decisions; how you are going to measure success; and how you are going to work together with each other. Bach recommended making a list of no more than 5 principles. Bach cited Costco as a great example of a company of a company with principle. “When you walk into Costco you are going to buy a product (or quantity) you can not buy anywhere else.”
Priorities — Bach said this is the 3P that is most difficult. Again, Bach said to not overload oneself with too many priorities; limited them to five. “If you do the first five things well, in a principled way towards a common purpose you will have a great chance for success,” Bach said.
With this newly formed and organized team using the 3P Framework as its guide, the company began innovating and changing the rules in the gaming industry. For example, Bach and his team fought (and won) to have sound and interactivity in the Xbox despite resistance from key decision-makers at Microsoft.
The original Xbox sold 23 million consoles, while the second version, Xbox 360, has sold 80 million consoles.