Lars von Kantzow is a man of the street. He has built his career on a series of marketing and sales positions and is by nature a sophisticated, street-wise individual. His senior staff all give him high marks for his commitment to competitive intelligence and his thirst for wanting to know detailed operations and strategies of his rivals as well as his customers. Although small in numbers (his U.S. operation employs approximately 300 individuals), Lars von Kantzow has dedicated both time and investment dollars to developing a mature intelligence - the early warning process for Pergo.

The information for this report came from numerous interviews both inside and outside the Pergo Corporation. Aside from interviews with those who know Pergo and have watched its ascent to becoming a major player in the flooring market, we also interviewed a number of senior executives who report directly to the CEO's office. The interviews revealed a CEO who is very much invested in making his company intelligence savvy and one who encourages active participation in the intelligence process by all who work in the organization. Among the highlights are:

The CEO and his CI head have built an active intelligence network. This network consists of vendors, customers and consultants. David Sheehan, the CI manager and Lars von Kantzow himself will call into the network for feedback on a strategic question. Mr. von Kantzow himself reports nearly daily information on the marketplace from various members of this network.

War gaming has become a strategic discipline within Pergo. The CEO has continued to insist on once-or-twice-a-year war gaming sessions to address competitive issues brought on by market changes. The war gaming discipline has driven the CEO to seek better intelligence from his staff and from his field organization.

Lars von Kantzow constantly seeks "facts on the ground." Mr. von Kantzow is either attending trade shows or on the telephone asking the field organization for key pieces of intelligence. At times, he feels that he needs to go beyond his immediate network of contacts and learn directly from the marketplace.

The CEO has very deliberately located the CI manager's office only a few doors away from his. This has created a very natural relationship between David Sheehan, the CI head and the CEO. In addition to any weekly meetings, this proximity to the executive suite has allowed for an easy and quick transfer of critical intelligence, avoiding any bureaucracy found in many larger organizations.

Intelligence is high on nearly every agenda. Most company meetings include an intelligence report or session. These reports include assessment of a rival's pricing strategy, expected trade show activity and expected competitive moves. As one senior manager stated, attesting to von Kantzow's promotion of the intelligence element, "At sales meetings, marketing plan meetings and product meetings, CI is well integrated for input in establishing both our short-and long-term goals. CI is not just an item on the agenda, it's also worked into the discussion later."

The CEO maintains board-level interest in intelligence. Lars von Kantzow regularly provides competitive intelligence updates at board of directors meetings.

Competitor ID cards have become a standard intelligence tool by a CEO who wants the most current competitor knowledge. These competitor ID cards have created common language for Pergo's management to develop its own strategy. Updated each quarter, the ID cards summarize any changes in competitor activity, management style and overall goals as well as the numbers that drive those strategies.

Pergo: Flooring's Sleeping Giant
Pergo invented laminate flooring, but it was Pergo's use of competitive intelligence that helped turn its technology into competitive advantage

Pergo literally invented the laminate flooring product, which today rivals expensive wood or ceramic tile alternatives. It has created this category by smart marketing and, most of all, artful use of competitive intelligence to anticipate competitive activity. Pergo Inc., the U.S. subsidiary of parent company Perstorp AB of Sweden, became a flooring products leader in the United States in less than a half dozen years, surpassing in some categories U.S. flooring leaders, such as Armstrong, Congoleum, and Formica.

Pergo did not enter the U.S. market until 1994 with sales of $24 million, and has managed to create and command a leading share of an entirely new category, that of laminate flooring. Today the U.S. operation has achieved sales of more than $250 million, eclipsing its rivals.

The Swedish parent, Perstorp AB, began producing laminate in 1923 and invented the modern laminate flooring product, sold worldwide, in 1977. After some years of product development, Perstorp launched the new laminate flooring in 1984 in Europe. 1989 saw the first use of the Pergo brand name.

When Perstorp moved Lars von Kantzow to the U.S. in 1995, Pergo began to move aggressively into the flooring market, eventually signing a much-coveted exclusive agreement with Home Depot in the Spring of 1996.

Today Pergo enjoys a high level of market recognition on the part of consumers around the United States and Europe.

Read more about Lars von Kantsow

For further information about the Award, contact:

Sarah Gerrol, (617) 523-4141
sarah@morrisseyco.com
Morrisey & Co.
121 Mount Vernon Street
Boston, MA 02108