Tag Archives: Business and Economy

Surprise!

“Surprise” is a loaded word.

Mega Surprise

(Photo credit: Wikipedia)

We delight in surprise parties (well, maybe as long as we’re not the one being surprised) and we dislike surprise hairs in our soup (particularly if they’re not our color).  It’s a powerful concept, although I guess the scientists would tell you that it’s not the surprise itself that’s the issue – it’s the emotions that follow the surprise event.

Surprise is a concept of which we need to take full advantage in business while simultaneously avoiding it like the plague.  When a customer can’t find something in the store, we can take joy in their surprise when a store employee digs around in the back until they find an item thought to be out of stock.  This happened to the Mrs. just this past weekend. She’s now a customer for life and has been telling the story to everyone.  Earned media indeed!

On the other hand, when you advertise a product on sale and are out of stock an hour after the store opens, customers feel as if they’ve been lied to – it’s hard for them to believe you haven’t pulled a classic bait and switch to get them to the store.

Managing people often involves surprises of both sorts.  There are little ones like a key person calling in sick and big ones like them resigning.  On the other hand, sometimes we’re surprised by pieces of business those employees find out of the blue or by their achieving a higher standard in their work.  Yay!

I guess what it all means is that we need to manage expectations constantly both to avoid the bad kinds of surprise and to increase the impact of the good kind.  No, we shouldn’t have people thinking that a hair in their soup is permissible – that shows a need to manage something other than expectations – but we can make sure that when we set standards we adhere to them.  Customers and employees notice.  Our job is to surprise them in the good way.  Given how few organizations are able to get to their own professed standards, it shouldn’t be that difficult a task.  You agree?

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What A Soccer Player Teaches Us About Business

I spent part of the weekend watching the UEFA Euro Tournament.

European football government body badge

(Photo credit: Wikipedia)

If you’re into the sport of soccer, it’s must-see TV and the matches have, in general, lived up to the tournament’s stature as the best football tournament on the planet behind the FIFA World Cup.  During one of the games, the commentator described a player in a way that triggered an immediate business thought and that’s today’s topic.

The defender was described as having “a lack of pace but always a perfect reading of the situation so he’s quite valuable.”  In other words, he has the ability to read the situation on the field, react appropriately, and is rarely out of position even though he’s pretty slow relative to the other players on the pitch.  In my mind, that’s a good description of some desirable business traits as well.

How many executives do you know that act on knee-jerk reactions?  When they’re right, they’re often ahead of the field or have headed off a problem before it starts.  When they’re wrong, however, they often spend resources chasing markets that don’t develop or betting on new technologies that never pan out.  They end up out of position.

As businesspeople we can’t confuse activity for progress.  Moving quickly is always desirable but moving a bit more slowly while compensating for our lack of speed with a much better understanding of the situation is even more desirable in my book.  It’s not a particularly new thought:  we’ve all heard the fable of the tortoise and the hare and I expect we all know a few folks we’d describe as “slow.”  Slow is, in my mind, a relative thing – if they get to where they need to be because they can analyze a situation and react appropriately within the available time frame, they’re pretty valuable.

How about in yours?

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Free Lunch

I was going to write our Foodie Friday Fun piece about Jacques Pepin and his insistence in cracking eggs on a flat surface until I realized that I had written it already almost three years ago.  I guess that sort of proves his point – small details are what makes good cooking.  It makes good businesspeople and managers too.  Apparently, it makes for less redundant blogs as well.

Lunch

Lunch (Photo credit: munir)

Instead, let’s write about free lunches.  We’ve all heard about them and that it’s supposedly impossible to get something for nothing.  It comes from the old tradition of bars serving free food if you bought drinks.  I was reminded of this as I experienced yet another “freemium” model.  The problem is that many companies have turned freemium into bait and switch.  They’ve also made the free product pretty useless without the premium purchase.  There’s a really nice piece on three gaming companies and how they approached this balance on The Mary Sue (hat tip to my girl geek youngest daughter for pointing it out!).

In my case, I used an online golf trip service.  It’s a great idea – in fact, it was a concept my buddies and I had talked about doing ourselves to help other groups plan golf trips and score golf tournaments.  The problem is this:  the basics – organizing emails, setting up housing, and communicating with the group are free.  Another free element is setting up scorecards.  Once you actually have scores, you can input them but tournament results are part of the paid system.  So is the trip accounting.  Now if you’ve ever traveled with other folks you know that keeping track of the money and dividing it all out is a big pain.  So is scoring a golf tournament when handicaps, match play, and other side bets factor in.  The price to upgrade is per player, per round, so as the trip gets bigger or longer, the cost goes up until, as in our case, it became prohibitively expensive.  In other words, I scored the tournament manually, the accountant is figuring out the bills manually, and we won’t be back to the service since it offers us nothing we really need.

I’ve had the freemium business model discussion with many clients over the last few years.  I think it’s a good idea but I also think it the free part needs to be valuable on its own and the paid part needs to be an add-on, not an integral part of why folks would use the product in the first place.  As always, the focus needs to be on the customer and providing value, not on luring them in with a semi-broken product that only a payment fixes.  Look at Pandora or Skype – great freemium businesses. So is Valve, the game company.

There may not be any free lunch but we certainly can provide some great free snacks that whet folk’s appetites without making them angry.  You with me?

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