May 30, 2018 · 11:22 am
A long post today – please bear with me. I’m sure you have heard about the cancellation of Roseanne after the show’s namesake sent out a racist tweet. There was about a two-hour delay from when the tweet went public until ABC pulled the plug on the program. During that time, I wondered if ABC and parent company Disney would do the right thing. They did and it’s a great example to any of us in business about something that I’m passionate about.
You know we don’t do politics here. This isn’t political – it’s all business, people. Let’s look at this from a business perspective and let me explain why I’m so proud to be an ABC alumnus today.
First, the business background. This piece from Variety explains the issues ABC has had for years on Tuesday nights. In Roseanne, they finally had not only a hit program but a show around which they could build a solid night of programming. While they had not reaped a huge financial windfall from the show (it was a midseason replacement), they were poised to use it in the negotiations for ad time during the upcoming season. The way things work is that if you want to buy a hit you generally have to buy other programming too to get the best pricing. In other words, the loss is more about what might have been rather than existing dollars. Still, it is a financial hit.
Which leads me to the point about which I’m passionate. ABC made a decision to do the right thing no matter the financial cost or how disruptive it may be to their business. I’m sure they also looked to the potential cost to the Disney brand if they were to give tacit approval to what Roseanne tweeted by doing nothing. They looked to the long-term and to take action in accordance with their own principles and not the easy road. While there is never a good time for something like this to take place, this is probably about the worst possible time, given that the upfront selling season is beginning and ABC just announced their schedule, which will now have to be remade, two weeks ago.
Why is it so hard for companies to do the right thing? A heck of a lot don’t. Insurance companies who spend more effort finding ways to deny claims than to pay them. Oil companies who fund fake studies to promote climate change denial rather than working to find clean energy. Food and tobacco companies that know about the problems with their products but who fight efforts to make the public aware. Those are just a few examples and I’m sure you can think of many more.
Contrast ABC’s quick, decisive action with other media companies who protected bad behavior by big-time talent. It didn’t require multiple meetings or in-depth analysis. The right course of action was obvious. I’d argue it was as well in other recent cases where the company failed to do the right thing. Equifax knew they had a hacking problem months before they told the public. In that time, executives may have sold $1.8 Billion in shares. Someone at Wells Fargo must have come up with the plan to charge half a million consumers for insurance they didn’t need. Why didn’t someone say “oh hell no” and fire the person on the spot? Even Apple failed to do the right thing by not telling customers it was slowing down their phones even though customers asked.
Any of these things could have been prevented if the businesspeople involved had acted honorably. By that, I mean in a way that would stand up to public scrutiny when measured against ethical and moral standards. Someone knew, someone could have nipped it in the bud, and someone could have used it as a teaching moment to explain why doing the right thing is important.
I know not everyone shares exactly the same standards, but I do believe that placing customers’ needs about profits, thinking long-term, and behaving as if the customer were your Mom or Dad rather than a “mark” is better than maximizing revenue. Shareholder value comes from long-term customers with high lifetime values and a sterling reputation. You get those by opting to do the right thing.
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Filed under Consulting, Reality checks, What's Going On
Tagged as abc tv, Business and Economy, business thinking, Disney, life, life lessons, management, managing, Reality checks
May 25, 2018 · 12:56 pm
Happy Foodie Friday! It’s an especially good one as we head into Memorial Day Weekend, the unofficial start of Summer and the grilling season for many of you. I have a friend who will be a lot more circumspect about what she is grilling this weekend because she found out the other day that she has a bunch of food intolerances. What are they and what do they have to do with business?
Food intolerances are different from food allergies. You’re not going to die from the former while you just might from the latter. Instead, your symptoms develop over time as you keep eating things for which you have an intolerance. Maybe you get headaches or stomach aches. Maybe you retain fluids. Maybe you develop a cough that won’t go away or hives or a runny nose. All can be symptoms of a food intolerance.
They’re caused by several things, one of which can be a chemical – caffeine, amines, salicylate – which occur naturally but to which your body is sensitive. The ones you hear about most often are gluten intolerance and lactose intolerance but there are as many intolerances as there are foods, it seems. Fortunately, it’s not difficult to live with a food intolerance as long as you’re willing to adjust your diet and avoid things that you’ve identified as problematic. It’s less easy to fix an intolerance in business.
I’m sure that every manager has a story or two of employees who can’t get along. I certainly do. It can be a huge problem for a business, especially if the employees are managers themselves. There are a lot of reasons why two adults can’t tolerate one another. One feels the other isn’t pulling his or her weight. One gossips. There is a perceived inequity in titles or salary or responsibility. I’ve run into each of those along with the most basic reason for a business intolerance: they just don’t like one another due to some perceived slight that was never corrected.
You cannot let this situation fester, and the key to fixing it is to identify the real problem. Telling them to “grow up” won’t fix anything nor will telling them to “work it out.” You need to speak with the parties involved individually and together and you must follow up your discussions with action. You can’t have a chat and assume the matter is solved. Like a food intolerance that won’t kill you, two employees who can’t tolerate one another won’t destroy a business but they can make things pretty miserable. Also as with food, identifying the source of the problem and following it up with action and monitoring is how you make the problem go away.
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May 23, 2018 · 10:17 am
What can’t you do? If you’re a child of my children‘s generation, you’ve probably been told since you were born that you can do anything. You have no limits. Does anyone really believe that’s true – that there isn’t anything we can’t do if we try really hard and practice a lot?
As you know if you’ve spent any time in this space, I play golf. I’m not horrible at it although I’m far from really good. I do practice and I might just try too hard. That said, there are shots I just can’t hit and never will be able to despite knowing how to do so and practicing them (you go ahead and hit that 225-yard shot over water and a bunker into a tight pin on a narrow green without landing in trouble).
Knowing your limits is important both in life and in business. We all want to help the team but learning to say “no” when you’re asked to take on more work than you can possibly do well really IS helping. Everyone hits the wall at some point and taking on too many projects or work that you’re not qualified to do well is a great way to hit it bang on.
Many ski areas have signs that remind you to ski within your limits. There is a sign at Bethpage Black, a golf course which has hosted the U.S. Open, that, in essence, asks you to know your limitations as a golfer and respect them.
Many people want to learn and to grow. Most people want to take on a new challenge. While you do need to push your limits to do this, at the same time, you need to be conscious of your abilities and approach any new goals appropriately. In golf or skiing, we can take lessons. How many businesspeople invest in courses to improve their skills?
In skiing and riding, we wear protective gear. The problem is that sometimes we get a false sense of security and push too far. In business, we rely on data from dodgy sources or only those surveys that tell us what we want to hear to give us that same false sense. Instead of recognizing the limits of the information, we believe it.
I’ve been playing the guitar since I was 10. I still can’t play like Clapton or Page despite well over 10,000 hours of practice. It may be some sort of physical ability I don’t have which they do. Then again, I probably have some mental abilities that have let me learn many skills they don’t have. Learning what you can and can’t do even with practice, instruction, and perseverance is key, and accepting those limitations, disheartening as it can be, can help make you better, not worse. Does that make sense?
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