Category Archives: Huh?

Make Up Your Mind

At the risk of compelling you to sound like Ronald Reagan (“There you go again”), I’m going to weigh in on a lesson learned from yesterday’s US Open Golf Championship. I promise not to get into a discussion of the rules of golf!

There was a moment when Dustin Johnson, who was leading the tournament, had his golf ball move a tiny bit while he was preparing to putt. He notified the rules official about what had happened and the official told him that since ball moved without Johnson doing anything to cause it, there would be no penalty. At some point, other US Golf Association officials notified the on course officials that they were going to review video of the indecent and that Johnson might be facing a one stroke penalty. What ensued was chaos, and is instructive for any of us in business.

Put yourself in the position of the golfers. At the time, there were several competitors within several strokes of one another. The on-course scoreboards might no longer be accurate and every walking official had been notified that Johnson’s score might be one shot lower than the scoreboards were reporting. Do the golfers play more aggressively? More conservatively? The point is that there was uncertainty and that uncertainty might not be resolved until after the round was over when more officials could chat with Johnson.

That’s the business lesson. Putting aside the complexity of the rules, the USGA should have made a decision immediately. No golfer can compete without knowing how they stand and neither can the folks who work in your business. I’ve worked in organizations where there were rumors of layoffs and/or budget cuts. It was paralyzing. Employees were focused on their jobs and not on their work. Partners were worried about both with whom they’d be dealing and if the business could live up to commitments it had made. I’ve found people can deal with almost anything except not knowing.

There is a corollary lesson here. If the scoreboards aren’t accurate, the golfers don’t know how they stand nor how they should operate going forward. If your data is incomplete or possibly inaccurate, neither do you. We need to make decisions and we need to have accurate, complete information as we do so.  Lesson learned?

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You Always Hurt The One You Love

There is an old song made famous by The Mills Brothers. The first two lines are:

You always hurt the one you love
The one you shouldn’t hurt at all

Today’s screed is the unbelievable tale of a media entity that is doing just that. Why unbelievable? Because if I asked you to tell me the absolute dumbest thing any company could do you just might respond with exactly what this company is doing. Let me explain.

The Walking Dead is AMC’s (and maybe TV‘s) biggest show. Not unexpectedly, there are many fan groups that interact via social media. One of the biggest – about 400,000 strong – is a Facebook group called “The Spoiling Dead Fans.” As you might guess from the name, part of what the group does is to make predictions about what will occur in upcoming episodes, and lately, it’s about who was killed by a barbed wire coated baseball bat (named Lucille). These fans, as you might guess, would be classified as “hard-core.” They watch the show, the discuss the show, they pick apart every episode for clues. In short – they’re what every media entity wants: engaged, excited consumers.

So how has AMC rewarded these loyal fans? In their words:

In the past two years, AMC has filed several wrongful DMCA notices against us with full knowledge that we could not file counter-notices, hired investigators to intimidate our members, and threatened our local members with arrest, among other questionable acts.

Yep. They’re threatening to sue them. AMC believes “the predictions on the board are based on copyright protected, trade secret information about the most critical plot information in the unreleased next season of The Walking Dead”. If you’re not shaking your head about now, you should be. It’s not as if the fans have released footage or are torrenting purloined episodes. All they’re doing is keeping the show top of mind while it’s off the air between seasons. Is suing them for that really the best response?

If you’re over the age of 30, you’re old enough to remember when the music industry spent a lot of time and money suing consumers rather than using those resources to come up with a better business model (Steve Jobs did that for them). I think that alienation persists to this day.

I can’t imagine any instance where suing your best customers – hurting the ones who you shouldn’t hurt at all – is the best solution to a problem. Frankly, I’m not even sure that in this case there even is a problem. You?

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Telling Customers To Go FICO Themselves

Today’s screed is yet another instance of someone committing the grievous error of telling the truth about his organization’s bad behavior, and doing so in a public forum! Not surprisingly, this executive comes out of the cable industry, which is renowned for having a somewhat less than favorable reputation among consumers.  This guy isn’t helping.

Let me state upfront that I know plenty of cable executives.  I grew up in the TV business with some. Heck, I’ve even had them as clients (none of them are at the moment!).  I will categorically state that they are generally good business people and even better human beings, at least most of them.  I’m not sure why the cable industry has the generally lousy reputation among consumers, but facts are facts.  This statement, spoken by the CEO of Cable One might shed a little light on it:

According to company CEO Thomas Might, the Phoenix, Ariz.-based MSO has deployed a “very rigorous FICI credit scoring process” on its video customers since 2013.  “We don’t turn people away,” Might said, but the cable company’s technicians aren’t going to “spend 15 minutes setting up an iPhone app” for a customer who has a low FICO score.

Yes, you’re reading that right.  He’s happy to take the money of people with bad credit scores but he’s not going to service them to any degree.  As you might be aware, not everyone with a bad credit score is of lesser means.  Maybe you had a billing dispute so you didn’t pay it and the vendor put through a ding to your credit report.  Maybe you didn’t get paid by clients and you couldn’t pay some bills. Or maybe you just live in the “wrong” neighborhood.  In any event, Cable One isn’t going to service you even though you’re paying the same fees as the folks with sterling credit scores.

It goes without saying that  every one of these customers is signing the same contract with the cable company and, therefore, is entitled to the same support for the level of cable service they’re buying. Not in the CEO’s mind. In my mind, discrimination of any sort is a bad idea.  That’s not to say rewarding your best customers with “extras” is bad – it isn’t.  That’s not what we’re seeing here.  This is denigrating the basic support a customer can expect based on a measure of that customer’s financial stregth, and I think it’s wrong.  You?

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