Category Archives: Consulting

Top Posts Of The Year – Foodie Friday Edition

If you read this screed with any regularity, you know that Friday’s topic is always food-related. The post below is the most-read foodie post of 2016. It was published last January and was originally called “Ripe.” It was a rumination on a banana and businesses that forego strategy for speed. As you’ll read, I’m not a fan of racing to the wrong destination, or to no destination at all. Amazing where one banana can take you, isn’t it? A healthy and happy New Year to you all. On to 2017!

It’s Foodie Friday and this week’s post is inspired by my breakfast. My weekday breakfast almost always involves a banana, and this morning’s banana looked yummy until I actually bit in. It was not really ripe enough. The texture was too hard for my taste and the flavors hadn’t really matured. In fact, it was kind of tasteless and quite unsatisfying. The banana would definitely have benefited from another day or two of ripening. 

Despite my day not being off to a great start, a business point popped into my head. Many businesses suffer from the same phenomenon as the banana (although honestly, I am not blaming the banana for being eaten too soon). We don’t let things ripen and we move overly fast. I see this with some clients who forget the original business plan when a new opportunity presents itself, losing sight of what had got the business to this point. That sort of action – moving too fast away from what was a good idea – does nothing but engender short-term thinking.

Failing to let the business ripen also means you’ve not got enough customer feedback. It takes time to scale, and even if you enjoy explosive growth, it takes time for both the business and your customers to figure out what feedback is meaningful based on repeat engagements, etc. You would much rather hear from a customer who has purchased and used your product several times that a one-time experience.

You need to ripen to assess the right size of your staff. You need to ripen to estimate what your real operating costs are and will be. To the extent scale improves product costs, you need to ripen in order to make that assessment. Finally, you need to ripen to ascertain what your real capital needs are. Early cash flow won’t be as promising as it will become down the road (hopefully) but those needs don’t present themselves right away.

I am all for moving quickly, particularly when a company is young.  Haste, however, can make waste when that speed and a failure to let things ripen means a loss of focus.  Make sense?

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Filed under Consulting, food, Thinking Aloud

Top Posts Of The Year #3

Continuing our countdown to the most-read post of the year, this post is from last May. I’ll often use something that has happened to me as a case study, particularly when it involved bad customer service. I generally find that many of the issues that escalate into customers not returning to a business involve things that could be prevented or remedied with transparency. This post is one of those cases. Originally called “I Got Trucked,” it was prompted by a bad van rental experience. Enjoy!

I rented a cargo van and that’s when the fun started. I mentioned in another post that we’re preparing to sell Rancho Deluxe and part of the process is cleaning out 30 years of stuff. I booked a cargo van through Enterprise, a company from which I’ve rented cars in the past without issue. They confirmed my reservation but just to be safe I went to the local lot and examined the vehicle I was renting a week ahead of time to be sure it would serve my needs. It was fine.

At 2pm the day of the rental I got a call from Enterprise asking if I was indeed coming to pick it up. I said yes, the reservation is for 5:30 and that’s when I’ll be there. I asked if there was an issue. The guy on the phone said no, we have a van, it’s just not the one you saw. Hmm. Is it the same size? “No, it’s a little shorter.” “You mean less tall because I need height to get some items in?” “No, the length is less.” OK, not an issue.

5:30 comes and I go to get the van. It is quite nice but a miniature version of what I rented. It was no bigger than a minivan or large SUV, and not at all satisfactory for my needs. The customer service rep was very apologetic, informing me that the person who rented it last hadn’t brought it back, they’d been working all day to find me another one, etc. All well and good, but it’s 5:40, most other rental places have closed or will close in the next 20 minutes, and I need a van.

What’s the business lesson? First and foremost, be honest with your customers. Obviously, they knew there was an issue at 2 when they called. Why not be honest? I’ve been on the other end of this, running the NHL’s online commerce. One year we were completely out of hockey jerseys and the inventory system failed to turn off new orders. I told the customer service reps to be honest – we would not be able to fulfill the orders by Christmas and if the customers didn’t want a credit then a full refund should be offered. More than that, I asked our commerce folks to be proactive and contact the people immediately, since it is unacceptable that some kid wouldn’t get a gift due to our faulty inventory management.

Had they been open about the problem at 2, it would have given me 3 hours to find a replacement. They were also dishonest about the size of the replacement. It had nowhere close to the cargo capacity of what I rented. No, I didn’t take the replacement Enterprise offered me. I scrambled and was lucky enough to convince a U-Haul dealer to stay open an extra 15 minutes to rent me something like what I rented in the first place. It will cost me a few bucks more but at least I got what I needed.

I’m hoping this was an aberration on Enterprise’s part. As I said above, I’ve rented cars from them before without a hitch. Customers don’t expect perfection but they do expect to be told when there is a problem and to be told what you’re doing to solve it. I wasn’t told there was a problem until it was too late, and what they had done was to throw up their hands when they couldn’t find a replacement in their own inventory (ever hear of an airline rebooking you on another airline? Maybe get one from someone else?). The goodwill you’ll generate by doing so will outweigh the negative of the moment.  You with me?

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Filed under Consulting, Huh?, What's Going On

Top Posts Of The Year #4

Courtesy Jeffrey Beall

Each year at this time, I repost the most read 4 “regular” posts and the top Foodie Friday post from this calendar year. That’s what I’ll be doing this week. The #4 most-read post was written prior to the Super Bowl and was a pre-game appreciation for Peyton Manning‘s last game. Originally titled “The Wily Old Veteran,” it deals with things one learns over time. In retrospect, it was probably a bit of a love note to my fellow “experienced” business people too. Enjoy!

The Super Bowl is this Sunday and if you’re not going to be watching it you are a member of a small minority in this country. It’s been hard to avoid hearing about the upcoming tilt for weeks, and it has become almost impossible this week. That’s not a complaint, by the way. I’m a huge fan and while it’s sad to see the NFL season end, this year’s game offers us something of a business lesson as part of the deal.

Amidst all of the hoopla, you might have heard Peyton Manning’s name more than once. If you follow the game at all you’re aware that he is a guaranteed first-ballot Hall Of Fame player who might be playing in his last game. You might also be aware that he missed a significant part of the regular season with a foot injury. In his place, Brock Osweiler came in and lead the team to a number of victories. He is clearly Denver’s quarterback of the future. Even after Manning got healthy, Osweiler had the starting job and was only back on the bench after Denver stumbled in a late season game and Manning came in. So why is Manning starting the Super Bowl?

You might say “oh, it’s a tribute to his wonderful career and that must be respected.” The real answer is the business point today. As an article written about the game said

Manning, not Osweiler, will start Sunday against the Carolina Panthers after reclaiming the job he lost to foot problems and turnovers earlier in the season. The five-time MVP‘s experience outweighed his limitations for the stretch run on a Denver team that relies on the running game and defense.

Experience isn’t something that you can teach – it’s something you need to gain over time. As I tell clients – most of whom are younger than I am – you hire me in part so that you don’t make all the mistakes I’ve made over the years. While you can stay up all night to work through a problem, I have probably faced the same problem multiple times over the last 40 years.  It might be possible to read about business and to learn (and I encourage you to do so!), but there is no substitute for living through business situations.  That takes time, patience, an open mind, and a willingness to accept that there might be many valid solutions to the problem you’re facing.

I will be rooting for the wily old veteran to have a good game no matter how his team does.  Every team needs one to help lead them into battle.  How about yours?

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Filed under Consulting, Helpful Hints, Thinking Aloud