For consumers, to have is good; to have not is frustrating. Over the course of his remarkable career, first as an engineer who pioneered groundbreaking product lines at 3M and then as a transformative CEO whose savvy leadership strategies turned companies with lackluster sales figures into stellar performers, Jack Truong has seen firsthand how being attuned to consumers’ unmet needs and finding ways to provide meaningful solutions consistently resulted in expanding market shares, burgeoning brand recognition, and exponentially increasing profits.
Prior to being promoted to a leadership role at 3M, Jack Truong, fresh from earning a Ph.D. in chemical engineering from the prestigious Rensselaer Polytechnic Institute, was tasked with improving the company’s current products as well as brainstorming new concepts.
“I was exposed to various divisions in my first two years at 3M, and I really had to learn and understand what the unmet needs were in those industries and come up with inventions that deliver innovative solutions for those particular sectors,” Truong recalled in a Jul. 26, 2021, interview with Construction Today. “Those formative years really taught me to see things the same as everyone else, but then think differently about them.”
Where Consumers Have the Will, Business Leaders Must Find the Way
Truong learned that being able to think differently — not simply outside the box, but often, in another container entirely — was a talent that served both him and the corporations he worked for well. Where others saw the end of a product cycle or, at best, a zero growth forecast, Jack Truong often recognized potential. By the time he left 3M to pursue other career opportunities, Truong had not only garnered 11 U.S. patents, introduced the world to microfiber cloth, and transformed the once-ailing Post-it brand into a market leader, he also played a crucial role in elevating the company to No. 3 on BusinessWeek’s authoritative 2006 list of The World’s Most Innovative Companies (behind tech titans Apple and Google).
“Running two global businesses for 3M gave me more great learning experiences and taught me that what is old in one area, is new in another,” Truong said.
In his next leadership role as president and CEO of the Electrolux Group’s North American region, his refusal to buy into the company’s then-accepted fatalistic corporate wisdom and stagnant earning projections led to yet another amazing turnaround. Again, it was a success derived from Jack Truong’s knack for seizing on an unmet consumer need and delivering a solution, that in hindsight, might have seemed obvious, yet no one else had the vision to grasp.
When Truong joined the Electrolux Group in 2011, annual revenue for North America region was $4.2 billion. “The company saw North America as a mature market and didn’t expect any growth,” he told CEO Magazine. In his first meeting with the global leadership team, however, Truong begged to differ. “There’s no such thing as a mature market, there’s only mature business managers,” he recalled saying. “Of course they were shocked … but North America is a very large market and it should be growing.”
And indeed, after rebranding Electrolux’s flagship appliances to succinctly satisfy homeowners’ unrequited desires, the product line enjoyed a near-miraculous renaissance. Not only did sales and profit figures skyrocket thanks to Truong’s imaginative strategy, but the company was also able to create an enduring consumer perception of Electrolux as an elite, highly desirable brand well worth spending their money on.
Jack Truong Says Creativity Alone Won’t Necessarily Generate Revenue
No matter how flashy a new product may be, Truong cautions that unless it fulfills a consumer need or provides a novel solution to a problem, its potential is limited. Conversely, he believes innovation that’s truly driven by consumer needs and demands — especially unmet needs — has the potential to drive revenue, increase profit, and elevate a company above its competitors.
“Creativity is the generation of new ideas. While valuable, these concepts cannot always be marketed or commercialized,” Truong posited in a Sept. 11, 2023, feature for Entrepreneur. “Instead of addressing true consumers’ met or unmet needs, they were generated based on technical know-how. Even when they can be commercialized, they don’t often drive revenue or profit growth as expected.”
Case in point: During his tenure at Electrolux, Truong’s research revealed the company’s two top competitors were LG and Samsung. With techno-wizardry as their strong suit, both industry leaders were so hell-bent on adding the latest shiny bells, whistles, features, and gadgetry to their products, they didn’t stop to take what a great many consumers actually wanted into account — namely, elegance, ease of use, and durability — leaving the door open for Electrolux to fill the vacuum.
How Astute Observation and Flexibility Will Keep You Ahead of the Competition
“Ultimately, innovation is the differentiator influencing consumer behavior, creating new revenue and increasing profit — all the makings of a market leader,” Truong explained. “Innovation is about transformation: achieving more with less, finding new ways of doing things and identifying ways to create new consumer demand. Especially in uncertain times, how do you significantly alter the playing field to your benefit?”
With fluctuating market forces as the new business normal, sometimes it seems the only certainty these days is uncertainty. Jack Truong asserts companies that hope to grow and remain profitable must prioritize vigilance. “If you want to win and grow against tough competitors, you always have to find a different situation based on your strengths against your competitor’s weaknesses,” he told Construction Today.
However, in addition to keeping a close watch on the competition, Truong advises business leaders that in order to successfully navigate a volatile landscape, they must also be nimble enough to adjust to unexpected market shifts and adapt to changing customer concerns.
“As technology advances and consumer demand evolves, companies and products quickly can be left behind,” Truong warned. “Too many organizations are focused on developing, launching, and loading new technologies and features to existing products while ignoring the possibility of new solutions that actually make life easy for consumers.”
The final word? When consumers have what they want, that’s good. When they have not, if you can turn their frustration into your business opportunity, you’ll come out on top — and that’s even better.
