Monthly Archives: November 2016

November 7, 2016 · 2:12 pm

Affirmation And Information

Tomorrow is Election Day here in the US. That’s usually followed in most places by “get out and vote” but not here. Instead, I’m hoping that all of us who are eligible will get informed and then vote. The problem is that many people believe they’re doing just that but aren’t. It’s a problem common to business as well. 

I am pretty sure you’ve shared the experience I’m about to describe although I wonder if you’ve thought about it in business. A friend shares something on social media which you discover is just not true. I had that happen twice last week. I saw something and rather than immediately dismissing it because it didn’t jibe with my world view, I did a little hunting to see it what he posted was factual. It wasn’t and I let him know. Did I expect him to take it down? Hoped, maybe, but not expected. Instead, many of his contacts with a similar world view ignored the facts and continued to comment as if what he posted was gospel.

That’s the issue, both in our business lives and our personal lives. Most of us no longer seek information but instead want affirmation. We want something to tell us we’re right and not something that tells us the truth. That is how businesses go off the rails. The boss has a point of view based on misinformation and his minions spend time finding affirmation, not information. I think it’s also how a country gets off the rails too.

Here comes the cranky old man part. As the internet evolved I was happy because it eliminates gatekeepers of many sorts, including those that restrict the flow of information. Given the absolute deluge of crap, lies, misinformation, and worse that’s out there, I yearn for some responsible gatekeeping. We all need to be better informed as we make important decisions. Seeking what’s true and not just what we want to be true makes a huge difference in our decision-making. Maybe today’s a good day to pledge to do that because there are important decisions to be made, both tomorrow and beyond and in the voting booth as well as in the office. You with me?

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November 4, 2016 · 9:13 am

Hurt Feelings And Non-Competes

For our Foodie Friday Fun this week we have a bit of legal drama. I’ve mentioned several times before in this space that I am a fan of Cook’s Illustrated and have learned a lot about food and cooking from the publication. It was run for its entire existence by Christopher Kimball whom you may know from TV. He left the company a while back and has started his own publication (and media platform) called Milk Street. A few days ago,  The Boston Globe reported that America’s Test Kitchen (the corporate parent) is suing Kimball. Why?

Cook's Illustrated

(Photo credit: Wikipedia)

A lawsuit (filed) Monday against Kimball in Suffolk Superior Court, accusing the firm’s most prominent former employee of disloyalty, saying he “literally and conceptually ripped off America’s Test Kitchen.” “He kept on saying he wasn’t going to compete,” said Jack Bishop, chief creative officer at America’s Test Kitchen. “I took him at his word. I think everyone on the board was taking him at his word.”

Hmm. As with most legal spats, there are two versions here that contain much of the truth but THE truth lies somewhere in between. For our purposes, what can we learn that’s applicable to your business?

First, what Kimball appears to have been doing was planning his next venture for some time while he was still employed at ATK. If you’re employed, are you never to think about your next job? Headhunters call people all the time and many startup founders were employees someplace else while they developed their new company’s business plan. It’s unrealistic to think that the folks who work for us don’t look around to see what else is out there. What we can do is to make the choice to leave extremely difficult by keeping them happy, motivated, as well-paid as they could be anyplace else, and continually growing in their jobs.

Second, there doesn’t seem to have been a non-compete in place. This isn’t legal advice but you should be aware that non-competes are generally not enforceable if they’re signed after someone begins working for you without some additional compensation to the employee for having signed. The point of a non-compete for the company is to protect trade secrets and to protect against unfair competition. “Trade secrets” really have to be  proprietary and should be kept secret. They’re not secrets just because the employer says they are. Is ATK doing testing in a way that no one else is? Nope. One look at Serious Eats will show you that.  Have they found a secret business model? Nope. On the other hand, Kimball is alleged to have used ATK’s mailing lists to help start his new venture. That is theft and way over the line. Before you demand someone sign a non-compete, be sure that you have something that’s protectable and have the employee sign the document BEFORE they start work. If you’re adding one retroactively, be sure you give the employee something in return.

Finally, the new magazine just came out and the suit says it  bears a striking resemblance to Cook’s Illustrated, right down to its 32-page size. I got my copy the other day and it’s similar but not the same. You can’t protect look and feel, and clearly, it’s original content (not plagiarized) so a good part of this seems to be hurt feelings. Our jobs as managers and businesspeople are to make feelings of that sort a rarity. Treat your co-workers at least as well as you’d treat a customer (and you know how I feel about that!).

I don’t know which side I’m on but I do know that the entire matter could probably have been avoided with better communication and a lot more transparency. I’m pretty sure that the legal fees each side will incur are a good chunk of what either might have given or received had they talked this through. Better idea, don’t you think?

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November 2, 2016 · 10:13 am

Don’t Better Deal

Have you ever been to a business function or a cocktail party where the person with whom you’re speaking is constantly searching the room with his eyes? They’re better dealing you. They’re trying to find someone more important (or interesting) who is a better deal than you. In a business setting, it’s usually a higher-up they’d like to impress but it’s generally someone who they think can make their life better than you can. I think that sort of thing is rude. Sure, you should have a general awareness of who is in the room but I think it’s important to be “present” in any conversation you’re having. If you want to end it gracefully and move on, so be it, but don’t nod your head and mumble “uh-huh” while scanning the room.

I can hear you thinking that you’d never do that, at least not unless someone was a boring, raging drunk. As it turns out, there is evidence to suggest that many marketers are better-dealing their customers all the time instead of focusing on what the customer is saying. How do I know? This from eMarketer:

HubSpot examined marketing priorities of marketers worldwide practicing inbound strategies (next-generation techniques that foster a two-way interaction and relationship with prospects and that aim for customers to come to the brand) and outbound strategies (more traditional marketing, in which customers are sought out and reached with general, one-way messaging such as TV, print ads or cold calls). Converting contacts and leads into customers was a marketing priority for 77% of inbound marketers and 68% of outbound marketers.

Increasing revenue from current customers , on the other hand, was only a priority for 46%. This despite the fact that it’s about 5x more efficient to retain a customer than it is to acquire a new one. Thinking of it another way, you would have to find five new customers to gain the same profitability as you would from retaining one. You have a 60%-70% chance of selling something to an existing customer and only a 5%-20% chance to sell to a new one. Which odds are more appealing?

You might think you’re giving yourself a better deal by focusing on the next conversation (finding new customers) but as it turns out you’re way better off devoting resources and staying focused on the current chat (your current customers). The odds are the “better deal” will still be at the party when your current conversation moves on. Make sense?

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