Tag Archives: Business and Economy

September 27, 2016 · 10:37 am

The “Debate”

If you have any interest in presidential politics or are the kind of person who can’t look away from a trainwreck, then you probably tuned into the shouting match between Donald Trump and Hillary Clinton last evening. It was billed as a debate but as we’ll see in a second, it was anything but. It did, however, teach us something about business.

Debates between presidential candidates have been going on for centuries. You’ve heard of the Lincoln-Douglas debates of 1858. While those weren’t about a presidential election, they are fine examples of classic debating form. This is an excellent definition from the International Debate Education Association:

Debate embodies the ideals of reasoned argument, tolerance for divergent points of view and rigorous self-examination. Debate is, above all, a way for those who hold opposing views to discuss controversial issues without descending to insult, emotional appeals or personal bias. A key trademark of debate is that it rarely ends in agreement, but rather allows for a robust analysis of the question at hand.

Was that what we watched last night? I think not. But it’s something to keep in mind as you bring together people in business to debate ideas. How often are ideas discussed freely and openly in your place? When a boss is in the room, how free do the subordinates feel to oppose his or her point of view? Do facts surface that allow for the robust analysis which is the goal, or are people entrenched in the positions with closed minds?

Imagine if last night had been a moderated discussion, based in fact, of how to fix a problem our country is having. The goal isn’t to convince people to vote one way or the other but to surface the different, well-reasoned points of view about approaches to an issue and allow the voters to make their minds up on that basis. Nice dream, right?

Now think about trying to do that in a business setting. Maybe it’s the person or persons who need to make the decision that moderate. I suspect the decisions taken after such a debate will be sounder than those that follow free-form arguing, politicking the boss, or emotional exchanges. Maybe we should debate it?

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September 26, 2016 · 12:03 pm

The King Is Dead

It would be impossible for me to let the passing of Arnold Palmer go by without comment. This isn’t another golf screed. It’s some thinking on a great businessman who used golf as a jumping off point to demonstrate some behaviors all of us ought to try to emulate as we go through our business lives.

English: Arnold Palmer, taken by Hospital staf...

(Photo credit: Wikipedia)

Arnold Palmer passed last night at 87. A lot of what you need to know about him was captured in something Time Magazine wrote in 1962:

“When God created Jack Nicklaus and Arnold Palmer,” it wrote, “He turned to Nicklaus and said, ‘You will be the greatest the game has ever seen.’ Then He turned to Palmer, adding, ‘But they will love you more.’ ”

Palmer’s achievements on the course were substantial. He won 62 times on the PGA Tour and those wins included 7 major championships. He did so with an “everyman” swagger, a swing that was uniquely his (and was far from classic), and an attitude of going for broke on every shot. But it was off the course where Mr. Palmer’s lessons for all of us begin.

He considered golf a personification of basic life principles. As he wrote:

“Golf resembles life in so many ways. More than any game on earth, golf depends on simple, timeless principles of courtesy and respect.”

He was legendary for taking time to sign autographs for fans. Each of those signatures was legible because he felt that he should show respect to those who asked for one. You won’t find a picture of him shaking hands where he isn’t looking the other person in the eye. In short, he was beloved because he reciprocated that love.

He was able to turn all that love into a business empire. It’s often said that Mr. Palmer didn’t invent sports marketing but that he perfected it. Endorsement deals with Pennzoil, Arizona Beverages, drug companies, and dozens of others, along with his golf course design business generated a lot of money. But he gave back, and his charity work was an important part of who he was. He also mentored younger golfers and wrote a note every week to whomever won on the Tour. He also answered all of his fan mail. In short, he was among the best on the course and unequalled off the course.

What can you learn from him? First, performance counts. The basic product needs to be among the best to make all the other activities important. Second, show respect for your customers and reciprocate their affection. We talk a lot about engagement, and Mr. Palmer engaged the fans, speaking to them directly and not through press conferences. Third, never let anything you do potentially harm your brand. If you lend your brand to another via licensing or joint venture, be sure that the end result enhances what you do and can’t possibly denigrate your good work to that point.

I know of very few people in the sports business who are universally beloved. Mr. Palmer was at the top of that very short list. Rest easy, sir, and thank you for a lifetime of excellence.

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September 23, 2016 · 11:15 am

Following The Competition

This Foodie Friday I’d like us to think about something you’ve probably seen happen in your town. A restaurant will offer a dish that becomes insanely popular and suddenly everyone is offering their take on it. Cronuts, dishes with foams instead of sauces, or even stuffed burgers (Juicy Lucy’s) are examples. It’s not just restaurants either. One soda brand goes “clear” and suddenly everyone has a “clear” or “crystal” or something similar. The supermarket is stuffed to the gills with innovative products and the several follow-ons produced by competitors.

What does this show us? That businesses pay attention to their competition and are tracking what the other guy is doing. That’s good and important. After all, listening is a fundamental skill. Listening, however, isn’t necessarily reacting. Tracking isn’t following.

It’s not just in the food business. When Ecco had huge success with their hip spikeless golf shoes, suddenly every shoe company had a version. Of course, what the other guys missed was Ecco’s fashion sense, and some of the products were as bad as just wearing tennis shoes to play golf. Microsoft wasted a lot of time and money following Apple everywhere and producing their own versions of Apple products. Still using your Zune?

If you’re going to do your version of a competitor’s product, the impetus for that should be your customers’ expressions of need and not some knee-jerk reaction to what the competitor is doing. First, you might not understand how well the product is selling for the competition. Second, you don’t know what their costs are to produce the dish. Third, even if you do know the previously mentioned data points, you might produce an inferior version which damages your reputation and enhances that of the competition. Finally, and most importantly, follow your customers. Are they defecting to some other brand? Why? Is it to the new product or because you’ve taken them for granted in your haste to follow the other guy rather than them?

Paying attention to what the competition is doing is important but following them can be fatal. Follow your customers, not your competitors.

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