Collaborate to Grow the Pie, Not Just Split It

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This article originally appeared in Harvard Business Review on June 17, 2011

The NFL is in the midst of a public and piggish spectacle of billionaires arguing with millionaires about how to split approximately $10 billion in revenue. This is time, effort and money merely focused on splitting the pie versus growing the pie by innovating the product for the benefit of all, especially the fans.

Similar lockouts are played out on a much more frequent basis between the consumer packaged goods makers and their retail partners. Far too many retailers and manufacturers opt for pie-splitting instead of collaborating to come up with pie-growing strategies. Of the billions of dollars spent each year on trade promotion and innovation, our estimates are that only $1 in every $8 spent on trade promotion (13%) and $1 in every $20 (5%) generated from innovation actually grow their respective categories.


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