Category Archives: Thinking Aloud

August 9, 2016 · 11:48 am

Is Knowledge Power?

I’m sure you’ve heard the expression that “knowledge is power.” A version of that saying has been around for a long time, so much so that a version is found in the Bible. This is what Wikipedia says it means:

Though its meaning varies from author to author, the phrase often implies that with knowledge or education, one’s potential or abilities in life will certainly increase. Having and sharing knowledge is widely recognized as the basis for improving one’s reputation and influence, thus power. This phrase may also be used as a justification for a reluctance to share information when a person believes that withholding knowledge can deliver to that person some form of advantage. Another interpretation is that the only true power is knowledge, as everything (including any achievement) is derived from it.

We hear about “confidential information” all the time in business. The state version of that is “Top Secret.” Yet does such information exist? We humans have done a wonderful job of putting nearly all the world’s information into the hands of anyone who seeks it. We can ask our mobile devices just about any question and gain knowledge. Every confidentiality agreement I’ve ever signed always exempts information one can find “publicly available” or obtained from other sources. Those are increasingly easy to find and readily available.

Brands used to know more about their products than did consumers – how well it performed, how well priced it was for that performance versus the competition. That information was hard to obtain and so the brands had the power as they dispensed only the knowledge that wanted consumers to have. Local retailers and services used to be able to keep mediocrity a local secret. Have you tried a new restaurant win the last few years without checking out the online reviews?

Knowledge IS power, but the power had shifted to the masses. Advertising, which is how brands used to impart the knowledge they wanted consumers to have, is increasingly ignored. Consumers are educating themselves. I think brands and businesses that behave as if they know more than their customers or partners are going to lose. Do you?

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August 8, 2016 · 11:36 am

Bad Headline, Good Reminder

I missed the end of the Sprint Cup race yesterday. Not a big deal, I thought, you can read the results in the paper or online. I still have some of my old school media habits and reading the paper with breakfast is one of them, so I was little surprised to see the headline you see pictured below. After all, the only NASCAR driver named Hamilton that I know of was Bobby Hamilton, who passed away in 2007. Had F1’s Lewis Hamilton somehow entered the race and how did I not know that? And why was he driving the 11, which has a regular driver?

None of the above. As it turned out the race winner was Denny Hamlin, who competes every week in the 11 car. The headline was completely wrong. This isn’t a website either, so millions of papers aren’t going to be corrected with the press of a button. Putting aside what must be some editor’s massive embarrassment, there is something any of us in business can learn from this.

Newspapers are supposed to be trusted sources of information. While there is no doubt that the public’s trust in media generally as unbiased factual reporting sources has declined, most mainstream outlets still hold themselves to a higher standard. When mistakes happen – and they do daily – most reputable outlets correct them and call attention to the fact that they have done so, recognizing that they erred in the first place. That’s applicable to any business, as is attention to detail. Someone screwed up badly here. Knowing that it’s generally the editors who write (and certainly approve) the headlines, my money is that the fault lies there. Messing up the big things is usually obvious but it’s the lack of attention to the little things that I think irk consumers even more.

This bad headline is a good reminder. Any business loses trust when they mess up. If we’ve done a good job filling up our karmic bank accounts with our customers, we’ll be fine making these withdrawals for mistakes. Do so on a regular basis, however, and that account becomes overdrawn. That’s when our customers move on. Does that headline make sense?

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July 29, 2016 · 10:51 am

Learning Business From Burgers

This Foodie Friday brings news that the folks at Chipotle are doubling down. As you’re probably aware unless you’ve been under a rock for the last few months, Chipotle has had some serious issues with E.coli outbreaks in a number of their stores across the country. I wrote about this problem a few months back so we won’t review the details here. Suffice it to say that it has been a disaster for the chain and sales have plummeted.

Español: Restaurant Chipottle Mexican Grill in...

(Photo credit: Wikipedia)

In the wake of that, the chain has decided to open another chain. This one will serve burgers and has launched the first outlet in Ohio, calling it Tasty Made. It will serve the same sort of fare as McDonalds, Burger King, and any number of other chains: burgers, fries, and shakes. They intend, however, to put the Chipotle spin on them, as explained in this article:

The company said the new restaurant chain will use “high-quality ingredients that are grown and raised with respect for the animals, the land, and the farmers who produce them.” The company said the new restaurant chain will use “high-quality ingredients that are grown and raised with respect for the animals, the land, and the farmers who produce them.”

That’s the same philosophy as the main Chipotle chain and it had been serving them well until the bacteria breakout hit. Now one could rightly wonder why they’d be thinking about a couple of things. First, why burgers? It would seem as if the field is pretty well saturated and there is even a high-end competitor – Shake Shack – that seems to be in the space already. Second, why now?

I often remind clients that eBay wasn’t the first online auction site, Amazon wasn’t the first online retailer, and that the iPod wasn’t the first mp3 player. They just did things better. We’ve all heard the line about building a better mousetrap and that’s what Chipotle did in their original incarnation. There isn’t anything wrong with their model although obviously, the recent execution leaves quite a bit to be desired. None of us should be afraid to get into a crowded space if, and only if, we really do have a product that is obviously better to the consumer.

Why now? Why not. Their model works and they need to do something to jump start revenues since the flagship brand isn’t recovering quickly. They have other infrastructure already in place for marketing, real estate, systems, and distribution. In fact, they have a couple of other ideas (pizza!) in the works as well. I’ve found that if we wait until conditions are perfect, we’ll generally be waiting a long time.

Our love of a good burger isn’t going anywhere. Let’s see if Tasty Made does. No matter what, it’s will be interesting to learn from them.

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