Monthly Archives: December 2018

Back To Basics

I played a number of sports growing up. Thinking back on it, no matter which sport I was playing, when the season began the coach would inevitably talk about getting back to basics. He usually meant the building block skills that a team had to have in order to be successful. If you don’t think that’s important, watch one of today’s major league baseball players try to lay down a suicide squeeze bunt. That basic skill has almost disappeared.

No, today isn’t going to be yet another old guy rant about how the world has changed for the worse, Instead, as we approach the end of one year and the start of another, it’s a reminder that now is a great time to do a little back to basics thinking. It’s harder than you think because what often happens during the course of a year (or longer, depending on when the last time was that you did this exercise) is that the basics get forgotten in the heat of battle. So here are a few of the fundamental questions that I’d be asking myself and my team right about now.

First, what are we trying to accomplish? That sounds overly simple since making a profit is pretty much what every business is trying to do unless you’re a non- or not-for-profit organization. What are you trying to make happen? What problems that your customers have are you trying to solve?

Next, how are you measuring success? It’s not just the cash register ringing or the bottom line overflowing with black ink although clearly basic financial items are important. How many new customers did you attract? How is your reputation? What good have you done for your customers, your partners, your vendors, your employees, and your community?

After that, take a look forward. What do we need to do in order to be successful in this next year? How do last year’s results, both good and bad, direct us forward? What can we start doing and what should we stop doing, whether it’s meetings, products, reports, or something else? What could happen in the marketplace that will affect us, both positively and negatively? Do we have a disaster plan?

Finally, is the view you and your organization had of the world at the start of this year still the way you see it going forward? If you don’t think that things change that much, think back 5 years or even (gulp) 10. You wouldn’t have had a mobile strategy or a social media plan then. You probably didn’t pay a heck of a lot of attention to your website or online reviews. You sure had better be active in all of those areas today even if you’re not a digital business.

Those are some of the basics I see as necessary for success. What are some of yours?

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Filed under Consulting, Helpful Hints, Reality checks

Searching For Answers

Happy Foodie Friday! It’s the time of year when many entities try to sum up what’s been going on throughout the year from their perspective. Google is one of those companies, and they issue their “Year In Search” annually around this time. I thought it might be instructive to look at what were the top food-related searches in 2018 according to Google. They were:

1) Unicorn cake
2) Romaine lettuce
3) CBD gummies
4) Keto pancakes
5) Keto cheesecake
6) Necco Wafers
7) Keto cookies
8) Keto chili
9) Keto brownies
10) Gochujang

The obvious question is what can we learn, both about what’s going on in the food world as well as what we can take away from our own businesses, from this list. Here are a few observations from me.

First, half of the searches were related to “keto.” For those of you somehow unaware, keto refers to a ketogenic diet.  That’s a very low-carb diet, which can help you burn fat more effectively. Many people have already experienced its many proven benefits for weight loss, health, and performance. It’s not without problems but clearly, it’s gone front and center with a lot of people this year. I try to follow a modified keto diet myself, limiting carbs and trying to eat only low-glycemic foods. What can that tell us that might help our business? If you’re in the food business it’s pretty obvious, but even if you’re not it demonstrates that consumers are paying a lot more attention to their health and their diets. Movie theaters, airlines, and other transportation companies sell food. Your company or your building may have a cafeteria that does the same. Understanding that consumer eating habits are changing is critical to maintaining those bottom lines.

“CBD Gummies” point to the changing way we’re looking at weed. These are gummies made with cannabidiol, just one of the hundreds of compounds hiding within the cannabis plant. Some have no THC, others very much do. The point I want to make is that the weed business is exploding, so much so that tobacco and drug companies are trying to figure out how they can become involved. Is CBD a fad? Maybe, but once again, we can’t ignore trends in the marketplace and we need to think through if there is an opportunity or how our business might be impacted.

The “Romaine” search term clearly derives from the e-coli scares with that green this year. A great reminder that we all need disaster plans in place.

If you’re not familiar with it, “Gochujang” is a red chile paste that also contains glutinous rice, fermented soybeans, salt, and sometimes sweeteners. It’s a thick, sticky condiment that’s spicy and very concentrated and pungent in flavor. Another reminder that not only are tastes changing but as our population base is changing, our eating, media, shopping, and other habits are changing as well. We need to pay attention.

Finally, “unicorn cakes” are just silly. They’re multi-colored layer cakes generally covered in a highly-decorated white icing. They’re a great reminder that we all need to take a little time to have fun and enjoy ourselves by indulging in something that’s totally unrelated to our work lives.

Those are the insights I take away from the list. What are yours?

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Filed under food, What's Going On

Those Pesky Joneses

You might have missed something in the financial news yesterday that reminds us of a really important business point. The good folks at Verizon wrote down the value of Oath, which is what they renamed their acquisitions of AOL and Yahoo. I’ll let the good folks at Bloomberg relay the facts:

Verizon Communications Inc. is conceding defeat on its crusade to turn a patchwork of dot-com-era businesses into a thriving online operation.

The wireless carrier slashed the value of its AOL and Yahoo acquisitions by $4.6 billion, an acknowledgment that tough competition for digital advertising is leading to shortfalls in revenue and profit. The move will erase almost half the value of the division it had been calling Oath, which houses AOL, Yahoo and other businesses like the Huffington Post.

For you non-financial types out there, writing down an asset is the accounting term used to describe a reduction in the book value of an asset due to economic or fundamental changes in the asset. In other words, something isn’t worth what you paid for it any longer. Oops. These were acquisitions that Verizon made to transition into taking on Facebook and Google as a content providing, eyeball-generating ad brand. This latest stumble comes on the heels of several others that Verizon has made over the last several years (a JV with Redbox, their failed news site, their awful app store and of course, V-Cast). When you basically spend $4.8 Billion and flush $4.6 Billion of it down the write-down toilet as they did the other day, you might need to rethink your strategic direction.

When you think about it, what Verizon did is not all that uncommon in business. They forget what their core competencies were and chased the latest shiny object. Big mistake. Where would we be now if all that capital had been invested in 5G networking or in WiMax? Video and advertising is something in which hundreds of companies are engaged. Yes, it’s highly profitable but it’s also dominated by two behemoths and subject to the ebbs and flows of consumer interest (whatever happened to MySpace anyway?). Why would you try to keep up with those Joneses?

It seems as if FiOS, their high-speed broadband service has been abandoned. They’re no longer expanding despite the fact that demand for very high-speed internet is everywhere. 5G is years away and technically challenging. Does anyone remember the dream of WiMax? Those are areas in which they are the Joneses and people have to keep up with them. None of us in business can forget what made our ventures successful because we think the grass is greener in some other business’ yard. Don’t chase the Jones’ success. Create your own.

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Filed under Helpful Hints, Huh?, What's Going On