If care were a stock being offered on the market, it would be a wise commodity to invest in at this time on the planet. Care will soon be on the rise because everything else has been tried. –Doc Childre
Category: business
Now I really love those folks at Apple
I received a survey from Apple today about my experience at the Genius Bar. They wanted me to rate my experience and give them feedback. Perfect — I had called the store and tried to find an email address but to no avail. So I filled out the survey and one hour later, a Genius called me to follow-up, capture the info from my survey, and then is going to get the info to the stores so they can better service the next customer that comes along that has the same issue with iWeb that I had. How incredible is that?
It’s this kind of customer service that keeps people converting to Macs, iPhones, iPods. While a lot of companies are trying to copy the design and slick details of the devices themselves, what’s winning people over is the friendly, helpful service – a much more difficult business to copy. I like that I’m treated humanely with a sympathetic ear, that they go out of their way to help me, see if I’m satisfied once I’ve left the building, and if it turns out I’m in any way disappointed, they want to mend their ways.
Imagine if every business, big or small, regardless of industry, was striving to be the Apple among their competitors? Apple would be well within its right to set up a consulting arm to teach companies how to do business the Apple-way. And we’d all live in a better world thanks to their efforts.
Cash for Trash
Who doesn’t need a little extra money these days? Pretty soon you may need to look no further than your trash can. This week, Business Week ran an article on the recycling and waste – an area of our economy that is booming despite the loses being felt in many other industries. Green collar jobs and green collar crime are on the rise, mostly in the area of how to use trash. VC and PE firms are tripping over themselves to invest in new trash technologies, throwing a million ideas at the wall and hoping that a couple of them stick.
My new website is up and running! http://www.christainnewyork.com
Hooray! After a steep learning curve and months of agonizing over every word, photo, and design decision, my personal website is up and running. I created the website to drum-up freelance writing work and to grow my practice of helping small business effectively use new and emerging media to augment their marketing strategies. Launching my website today was the first step down the road to this new and exciting venture. The website links heavily to this blog and I will continue to maintain this blog with near-daily writing. I’d love your feedback on the website! http://www.christainnewyork.com
Winning by Jack Welch
Today, my boss showed an interview of Jack Welch when he was on his book tour for his then-new book, Winning. The interview contained all of the Welch-like outlooks that anyone in business has come to know well; f nothing else, he is remarkably persistent and consistent. Though I disagree with some fundamental beliefs he has about managing a company, I do think he provides excellent food for thought for today’s business leaders.
Off the bat, I have to admit that I have experienced Welch-style management first hand. I interned at The Home Depot for my summer between my years of business school. And though Welch never worked there himself, one of his proteges, Bob Nardelli, was the CEO for over 6 years. We all know how that played out, and there are numerous articles that have been written about the damaging culture of that place.
Many of the troubles that The Home Depot is facing now have nothing to do with the housing market. They have everything to do with the fact that in 6 years Nardelli decimated the culture that made that company great. People were afraid of him. He had dirty stores with low service levels and focused on the large professional contractor, a customer who was never all that interested in The Home Depot. They consequently sold the business after Nardelli’s termination. While Nardelli tried very hard to play hardball the way Mr. Welch taught him to, he forgot the lessons of shedding what is not essential, focusing on others when you are in a leadership position (as opposed to oneself), and realizing that a great company never believes they are best so they continually seek to learn and improve.
Where I strongly disagree with Welch is in his philosophy that is the namesake of his book: winning. He says a company’s job, its only job, is to win. He goes on to say that from winning, all good things come. My question to him would be, “Do you win at all costs, by any means necessary?” There are a lot of companies that got very large, fantastically wealthy, by completely disregarding the environment, by squeezing every last drop of margin out of their suppliers, and treating their people with less than respect. Wal-Mart is a great example of all of these operating principles. Now they’re working hard to reverse their ways. They certainly won by Welch’s definition. But was it worth it?
I would amend the mission statement of a company by saying that it’s job is to win with integrity. And by integrity I mean that it must consider that the communities in which its employees, suppliers, and customers live and do business are also stakeholders in their business decisions, as much as its stockholders. If a company wins and puts the health and well-being of its communities at risk, then in the long-run we all lose.
Reaching consumers where they are
“Build it and they will come” is a business mantra that I wish would die a quick death. I am amazed by how often retailers and service providers believe that the customer needs to seek them out. With so many choices and so little time, companies need to be proactively tracking their customers to find out where they are, and then doing whatever they can to get their products and services in front of them in compelling ways.
I read a post on one of the Amazon.com blogs today that was written by Rich Sloan, of the founders of StartUpNation. http://www.amazon.com/gp/blog/post/PLNK2ZPLRZB2ZOBQG. In the post, he describes a recent outing to Costco where he found AMC movie tickets available at a slight discount. He and his wife weren’t even considering seeing a movie, but it was clearly saving a bit of money for them and would provide them with an experience later on that they’d both enjoy. If not for that display, the couple would have had to decide to see a movie, then look up the times, dates, location, etc. of the closest movie showing a movie they were interested in. With a slight discount in a store where the couple was already shopping, AMC reached out to them and gave them an idea for a night out.
Well played, AMC. And a lesson for all of us in business. The rules of the game have changed: we must do everything we can to offer differentiated, timely benefits to consumers in a convenient package.
Waking the Dead – Reviving "Has-Been" Brands
In college, I had a boyfriend who loved Herbal Essence Shampoo. He wasn’t part of the target demographic, but he loved one of the scents so much that he just couldn’t imagine his morning shower without it. Despite this kind of following, every brand eventually grows old and stale if left untended. A.G. Lafley, CEO of P&G, says there are three routes for a dying brand: Abandon, Divest, or Re-invent. In the case of Herbal Essence, he chose the third option. I’m sure my former boyfriend is thrilled!
The P&G team didn’t perform any miraculous feats – they tightened up the demographic, modernized the packaging to stand out on the shelf and encourage the dual-purchase of shampoo and conditioner, and re-vamped the language with more current vocabulary and inuendos. This easy-to-understand process is allowing the fledgling brand to gain sales growth in the high single digits. Not bad, and certainly something not common in the current economy.
Process aside, I think A.G. Lafley is saying something much richer about product re-invention. It’s easy for product developers to fall in love with their product as is, for marketers to admire their own catchy phrasing and campaign themes so much that they can’t imagine anything more brilliant coming down the pike. For example, let’s consider the highly creative and relevant campaign by the Dove Brand – Campaign for Real Beauty. The simplicity and power of that statement resonated with a wide audience. That campaign has been around for a while, so much so that it’s beginning to become old news, especially in the wake of the touch-up work done on some of the campaign photographs. Those marketers need to be thinking about a re-invention now!
This is the trouble with brilliance that explains why we have so many one-hit wonders in this world. You have to let go of past successes as much as you have to let go of past failures in order to move forward. Product re-invention requires a constant, fervent belief that our best work is yet to be created. It requires that we push the envelope and challenge ourselves continuously. To take away that challenge and rest on our past success is to go the way of Sharper Image, Brim, and Tab.
For a look at the interactive case study on Herbal Essence’s re-invention, visit http://www.businessweek.com/managing/content/jun2008/ca20080617_465490.htm
What is Apple Without Steve Jobs?
I’m a little bit disturbed this afternoon. My boss sent me an article from today’s Fortune Magazine regarding the fate of Apple should Steve Jobs be hit by a bus. There are a myriad of comments flying around on-line about who would be best suited to take the reigns. And then I flipped through the candidates. I was surprised, no shocked, that one glaringly obvious problem with the article was never addressed. Every single one of the *11* possible replacements for Jobs is a white male, and 10 of those are middle-aged. (Jonathan Ives appears to be the one young face in the crowd). Out of 11 hopefuls, not a single woman, nor a single racial minority, and only 1 person who isn’t half way through his working life? How can this be? If that’s truly the case then I think Apple indeed has something to worry about.
Daylife: a guide to today’s news
Jon Fine’s article in this week’s issue of Business Week discusses a new news provider, Daylife. As a devoted fan of the news and someone who believes that the plethora of new media channels can help to reinvent traditional media, I am intrigued by Daylife’s business model.
Daylife is a news aggregator that splits revenue with news sources based on the link and not on the destination page. Big deal – I can just set up a bunch of Google alerts on topics that interest me and get a nice stack of emails with daily news stories and blog posts on the subject, right? Yes, I could do that. Or, I can just set up Google reader and collect my information that way. Yep, that’s an option.
Here’s the trouble: I love Google, but its alert search is far from all-encompassing and it makes no effort to relate one story to another, save for a common keyword. With Daylife, ordinary people like me can build highly-tailored news sites on any topic of interest, or variety of topics,and post them up on my own website. Essentially, I make my own little newspaper, and Daylife scours the enormous world of news on-line to get me the content and package it up for me in a neat format. This customizable feature is set to roll-out some time this summer.
To be sure, there is tension that exists between traditional media and this constantly morphing world of digital information. Today we get news from a variety of sources as it happens. It has never been easier to be informed on events that happen around the world. And this fact has created a world of complexity and information overload beyond our wildest imagination. While Daylife may not be a quick-fix or even a complete solution, it’s a start toward simplification and efficiency. In this case, even a modest improvement packs a punch.
What legacy says about leadership
A friend of mine was recently telling me about a company he recently left after a 10-year tenure. He had the privilege to work for the CEO for the last half of his time there, and is still inspired by that CEO’s clarity about the business and his ability to inspire everyone at the company. The CEO recently retired – a move that was a long-time coming. And the company is in turmoil as a result of the leadership vacuum created in the wake of the CEO’s departure. All of the executives are talking about leaving; without the CEO they feel lost.
My friend reveres that CEO as the greatest leader he has ever worked with. “See look what he built – the company can’t survive if he’s gone! That’s the mark of a great leader,” he said to me. I’m not so sure. After my recent conversation, I am left wondering what it says about a leader if their company’s success is driven by their presence. We all want to be wanted, and needed, and all want to feel that special sense that comes with being irreplaceable. Being irreplaceable creates a lot of burden, and ultimately negatively effects the lives of the people who work for that CEO in a profound way.
At the very least, cultivating that idea of being irreplaceable is irresponsible. The truth is that none of us will live forever, no matter how much we exercise, or how well we eat, or how often we monitor our health. And with job switching being so commonplace in today’s economy, on average each of us will change jobs almost 10 times in our lifetime. If a company falls apart due to one person’s departure, it means that leader didn’t create an active succession plan, and maybe the vision he or she inspired was not sustainable, and therefore not successful in the long-term.
I think about my recent trip out to LA to visit with Disney. Walt Disney died in 1967, a very young man, from lung cancer. From the time of his diagnosis, he had a year to live. And so much more he wanted to do. Even as he was building a company on imagination and achieving the impossible, a company that bore his name, he was also building something much more valuable – a company that could live on without him because of the brilliant and creative people he had the foresight to surround himself with. He passed the torch to a very capable group of people, who brought in even more capable people, to allow for continued growth decades later. To me, leaving a legacy that lasts in your absence if the greatest mark of successful leadership.
The photo above can be found at http://darkstar.holtz.com/hct/ee/images/uploads/hk-ceo.jpg
