Category Archives: What’s Going On

Shana Tova Time Again!

A shofar made from a ram's horn is traditional...

A shofar made from a ram’s horn is traditionally blown in observance of Rosh Hashanah, the beginning of the Jewish civic year. (Photo credit: Wikipedia)

Happy New Year!  I’m thinking about making this post an annual thing.  I know I don’t often repeat content but as I was thinking about what to write as Jews around the world celebrate Rosh Hashanah, I went back and checked out another post I wrote on the topic.  It seems to cover it pretty well, so I’m posting it again (in case it seems at all familiar as you read!).

Last night marked the start of the Jewish New Year.  I didn’t go down to Times Square to see if they were dropping a giant knish at the stroke of sundown – probably not.  L’Shana Tova – a happy and healthy New Year to all of you.

One of the things Jews do over the next 10 days (or at least are supposed to do) is to reflect on the year gone by and think about where it took you on life’s journey.  It’s not really as much about looking back in my mind as it is about looking forward.  Oh sure, one is supposed to think about where one strayed from life’s path in terms of dealing with other humans and human codes of conduct.  We get a day of fasting next week to get that sorted out.  But it’s also a time to think about a fresh start.  Which, of course, promoted a business thought.

When do businesses stop and enter a period of reflection?  It’s obvious when they’re changing – witness Facebook last week – but I, for one, certainly wonder sometimes if those changes happen due to the momentum of previous (maybe not so good) decisions or if they’re the result of a pause, some reflection, and a willful thought by the entire organization as to the direction.  Often, I fear, it’s the former.

Jews are to use the next ten days for reflection and repentance.  I like to think of them as ten days of self-improvement.  I’d also suggest that it would do many businesses a lot of good to build the same sort of period into their corporate calendars.  Some do – they call it the budget process – but I think that’s too selective in terms of participants and goals to do much good.  Some smart CEO needs to declare it New Year’s Day for the company once a year and get everyone to do the same sort of professional reflection that many of us do on the personal side.  Identify your sins (figuratively speaking) and atone.  Faulty customer service, weak brand identity, bad employee relations, products that aren’t optimal, fostering an atmosphere of fear – these are all good places to start.

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The Same But Different

At the risk of alienating a few of you who are sick of golf-related posts, I want to tell you about a tournament in which I participated over the last three days. It inspired some business thinking as I reflected on it so I feel it appropriate to share with you. I guess I’ll see the rest of you tomorrow!

Golf Anyone?

(Photo credit: Amber B McN)

The tournament was one in which I was paired with another club member for three days. Each day we played golf but the format varied by round.  The first round was what’s known as a scramble – each player on the team hits, we pick the better shot, and both hit the next shot from there.  Rinse, repeat for 18 holes.  It’s a format that encourages thoughtful, aggressive play.  One partner hits a safe shot, the other can try something more difficult since there is no penalty for failure.

The next day was best ball.  Each partner plays their own ball, handicap strokes are deducted, and the better net score is written down for each hole.  This is basic golf.  While there is some strategy, it’s not much different from the regular game one plays all the time.

Finally, there was alternate shot.  In this format, both players tee off, the best drive is selected, and then the player that didn’t hit the chosen drive hits the next shot.  Players alternate shots from there until the ball is holed.  It is a tremendously difficult format in many ways, the biggest of which is that a bad shot forces your partner to fix your mistake.  There is a fair amount of strategic thinking if you hit two good drives.  Who should hit onto the green?   Who do we want putting?  Weak players are exposed and better players often feel helpless since they can’t display their skill while trying to recover from a partner’s miss.

The similarities with business are what struck me this morning.  The rules and conditions are ever-changing even while the basic game remains the same.  One must adapt or die.  You have to build your team so that you can play under any condition.   Teams that had done well in the first two formats posted horrific scores yesterday because one player was very good while the other was pretty bad.  Attention to the strategy appropriate for the situation is always critical in golf and more so given the changes to the rules each day.   Finally, one bad hole doesn’t kill your team nor does one bad day or quarter in business.  Maintaining a good positive attitude with the big picture in mind can deliver a trophy; staying mad about the bad hole (or quarter!) can keep the negative results coming.

We won our group (by a stroke!), mostly on the basis of delivering solid results each day.  That’s not a bad thing for any business to do.  Wouldn’t you agree?

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Fading To Black?

Over the last couple of years I’ve written about cord-cutting and today I have another update of sorts.  As you know, this refers to people disconnecting from a “traditional” video provider such as a cable or satellite service and using only content delivered to the via “over-the-top” services – things that sit on top of a broadband connection.  These are services such as Netflix, Hulu, Amazon Video, and others.

Here is what caught my eye:

Thirteen of largest multichannel video providers in the U.S. — about 94% of the market (94.6 million subscribers) — lost about 345,000 net additional video subscribers in 2Q 2013 — down 0.4%, according to the Durham, N.H.-based Leichtman Research Group…The top nine cable companies lost about 555,000 video subscribers in second-quarter 2013, compared to a loss of about 540,000 subscribers in the second quarter of 2012…Bruce Leichtman, president and principal analyst for Leichtman Research Group, stated: “The multichannel video industry has leveled off, with major providers losing about 0.1% of all subscribers over the past year.”

OK, so not exactly a massive disconnect.  On the other hand, the trend is accelerating by most accounts, especially among younger people.  Now let’s think about the ongoing battle between Time Warner Cable and CBS.  No matter which side you’re on, it gives people the opportunity to seek alternatives, at least with respect to CBS and Showtime programming.  Once they figure out that much of the content is available elsewhere, cutting the cord becomes more viable.

Another anecdote.  This past weekend, I wanted to watch the Solheim Cup golf matches.  The place in which we were staying didn’t get the network carrying the matches and the live streaming via YouTube was not available in the US.  Solution?  I watched on a proxy server in Europe.  Not some sort of illegal torrent – simply a proxy server so they thought I was in France.  For those of us who are a bit more technically minded (and I think anyone under 30 fits the bill), this is a form of cord cutting behavior and negates the need for anything more that a high-speed connection to watch what I want on my own schedule.

Finally, some more research from STRATA shows that none of this is going unnoticed by the marketing community:

Focus on television advertising has hit a three-year low as the gap between TV and digital narrowed to its closest point ever, according to the most recent quarterly survey compiled by STRATA…TV advertising still remains the top advertising medium with 44% of survey respondents saying they are more interested in advertising on TV (spot TV/cable) than any other medium. While TV is still number one, this represents the lowest level of broadcast advertising interest seen in the STRATA quarterly survey in nearly three years. Gaining steadily on TV, digital is the second most popular medium at 35%…28% feel they will have a greater spend in Digital than Traditional in 1-3 years. 27% say they don’t ever anticipate a greater spend in Digital (down 45% and the lowest percentage ever).

Ad spending is a big part of the fuel that drives these businesses (and the Time Warner/CBS dispute points out the relatively new other piece – transmission fees).  If that piece shrinks, along with viewers and subscribers, the industry is in big trouble.  As the Chinese say, “interesting times”.

Your take?

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