Monthly Archives: August 2016

August 11, 2016 · 10:37 am

Transforming To The Digital Future

One of the questions clients ask is how they prepare for the digital transformation of their business. In some cases, the businesses are completely digital and the answers are much easier. For legacy businesses, however, the changes are often slow and painful, if they happen at all.

The folks at the MIT Sloan Management Review and Deloitte Digital released the fifth annual Digital Business Study. Called“Aligning the Organization for Its Digital Future, it presents an increasingly wide gap between the companies that have transitioned successfully to the digital world and those who are struggling to do so.

The report found that digitally maturing companies have organizational cultures that share common features, including an expanded appetite for risk, rapid experimentation, heavy investment in talent and recruiting, and the development of leaders who excel at soft skills. It also examined the different types of companies with respect to their digital transformation:

Additional analysis of this year’s study found three distinct cultural mindsets that relate closely to corporate stages of digital maturity. Some characteristics include:

  • Low appetite for risk– This mindset is common among early stage digital organizations. In addition to being risk adverse, early stage companies tend to have a hierarchical leadership structure, conduct work in silos, and make decisions based more on instinct rather than hard data.
  • Experimentation and speed– Conversely, digitally maturing companies value experimentation and speed, embrace risk, and create distributed leadership structures.
  • Collaboration– Digitally maturing companies also foster collaboration and are more likely to use data in decision making.

Nearly 80 percent of respondents surveyed from digitally maturing entities indicate their companies are actively engaged in initiatives that bolster risk taking, agility and collaboration. For early stage companies, the number falls to 23 percent.

Finally, they found that nearly 90 percent of digitally maturing organizations are integrating their digital strategies with their companies’ overall strategies. In other words, digital is not something that’s “tacked on” or just another channel.

Where do you fit in the spectrum? Do you have the skills – having a transformative vision, being a forward thinker, having a change-oriented mindset – the study found are critical for a successful transformation? How are you putting them to work?

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August 10, 2016 · 12:09 pm

Influencing The Influencers

If you’re a baseball fan of a certain age (OK, if you’re really old), you will probably recall Yogi Berra drinking Yoo-Hoo in commercials. In fact, he was synonymous with the brand (some people thought he owned the company). People loved Yogi, Yogi loved Yoo-Hoo, ergo, you should love Yoo-Hoo too. That’s pretty much how celebrity endorsements work, right? A famous person lends their brand equity to another brand, transferring positive attributes to the brand and for which the brand pays.

(Complete digression) According to his autobiography, Yogi was answering the phones at Yoo-Hoo one day and a woman calls to ask if Yoo-Hoo is hyphenated. His response: “No ma’am, it’s not even carbonated.’ “(/Complete digression)

I’ve written before about the modern digital equivalent of celebrity endorsements which is called influencer marketing. Some of the digital celebrities have huge followings even though in comparison to the older definition of celebrities – sports or entertainment stars – their audiences are niche. That hasn’t stopped many brands from paying the influencers to say nice things about their products. The problem is that unlike seeing the old kind of brand endorsement in a commercial the consumer can’t know for sure if the endorsement has been a paid insertion or whether the influencer just really likes something.

I bring this up because even though the FTC has some pretty strict rules in place with respect to disclosing payments for endorsements to prevent consumer confusion, new data from influencer marketing and media platform SheSpeaks shows that one out of four influencers has been asked not to disclose their commercial arrangements with a brand. That’s bad and self-defeating.

A while back I tweeted nice things about TSA Pre-check but the TSA didn’t ask me to do so. The folks who saw the tweet (and anything here on the screed while we’re on the topic) can rely that it was my honest opinion and not the result of money changing hands. Why would a quarter of  brands want to hide the payments? Do they think the message contained in the post on Instagram or Facebook or Snapchat is compromised if it’s known money changed hands? I think we all knew Yogi said nice things because he was paid but we also assumed he liked the product. Most endorsers I know don’t just cash the check to endorse any old thing. They realize that the brand is also a reflection on them. Either side hiding the payment works to the detriment of both.

This problem isn’t going to go away as influencer marketing continues to grow as a platform. Endorsements haven’t gone away over the years and won’t. Actresses will be given free gowns to wear on red carpets. Jocks will drink Gatorade. One can only hope that all parties involved keep it transparent and above board so it doesn’t become yet another good idea that was disrupted by a few bad actors. You agree?

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August 9, 2016 · 11:48 am

Is Knowledge Power?

I’m sure you’ve heard the expression that “knowledge is power.” A version of that saying has been around for a long time, so much so that a version is found in the Bible. This is what Wikipedia says it means:

Though its meaning varies from author to author, the phrase often implies that with knowledge or education, one’s potential or abilities in life will certainly increase. Having and sharing knowledge is widely recognized as the basis for improving one’s reputation and influence, thus power. This phrase may also be used as a justification for a reluctance to share information when a person believes that withholding knowledge can deliver to that person some form of advantage. Another interpretation is that the only true power is knowledge, as everything (including any achievement) is derived from it.

We hear about “confidential information” all the time in business. The state version of that is “Top Secret.” Yet does such information exist? We humans have done a wonderful job of putting nearly all the world’s information into the hands of anyone who seeks it. We can ask our mobile devices just about any question and gain knowledge. Every confidentiality agreement I’ve ever signed always exempts information one can find “publicly available” or obtained from other sources. Those are increasingly easy to find and readily available.

Brands used to know more about their products than did consumers – how well it performed, how well priced it was for that performance versus the competition. That information was hard to obtain and so the brands had the power as they dispensed only the knowledge that wanted consumers to have. Local retailers and services used to be able to keep mediocrity a local secret. Have you tried a new restaurant win the last few years without checking out the online reviews?

Knowledge IS power, but the power had shifted to the masses. Advertising, which is how brands used to impart the knowledge they wanted consumers to have, is increasingly ignored. Consumers are educating themselves. I think brands and businesses that behave as if they know more than their customers or partners are going to lose. Do you?

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