Tag Archives: Business and Economy

Be Inefficient – It’s Better For Your Business

Representatives of Facebook, Google, and Twitter have been summoned to Capitol Hill to explain what they know about how Russia used their platforms to interfere in the last Presidential election.  Their testimony began yesterday, and there was a recurring theme that I think has implications for any business. It has nothing to do with politics and everything to do with serving your customers.

Facebook logo Español: Logotipo de Facebook Fr...

(Photo credit: Wikipedia)

You may remember something from a few months back. There was a kerfuffle about Facebook using human editors on the News Feed who had a liberal bias. Whether that’s true or not is immaterial to our discussion. Facebook removed human editors from the “trending topics” feature seen in the news feeds of users. Given the decreased human oversight, gaming Facebook’s algorithm became easier, as demonstrably false news reports spread with increasing speed during the election. As Recode reported:

Sen. Jeff Flake is asking Facebook how it monitors its service — humans or artificial intelligence or both? Stretch (note: Facebook’a lawyer) said both, and explained a bit about how algorithms can detect non-human behavior, like someone creating many accounts in a very short amount of time. But while software can detect some of this stuff, humans often need to make a final decision on whether or not contents should be removed. Twitter and Google confirmed they have similar setups.

Fewer humans means fewer edits, apparently. What caught my attention yesterday was that each of the three platforms testified that putting in human-based solutions are inefficient for their business. What about the people on their platforms? A significant percentage of young people get their news only from Facebook. How can they be expected to understand the issues when the facts that are presented to them may be propaganda and not news or factual at all?

None of us in business can afford to make decisions solely on the basis of what’s good for the business. We need to stay customer and consumer-centric. After all, you wouldn’t want doctors in an ER failing to administer expensive drugs because it’s inefficient for the hospital, right? The restaurant that cuts the quality of their ingredients or service because they need higher margins won’t be around for very long.

Like most of you, I use these three platforms every day. Twitter is a cesspool, in my opinion, filled with trolls, hate-speech, and spam, but it’s also critically important. It’s a shame that they use the “free speech” argument to ignore that crap. There are limits on speech – try yelling “fire” in a theater and see what happens to you – and Twitter needs to clean up its act. All three of these companies need to quit using the profit motive and their responsibility to shareholders as excuses to let the bad actors do their thing. Be a little less efficient and more customer-friendly. Facebook admitted they knew something was going on and did nothing, allowing the “fake news” and propaganda to disseminate. That’s not consumer-friendly, is it?

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Filed under Huh?, What's Going On

The Real Magic

I bought a ticket yesterday to see the Michigan Wolverine basketball team play North Carolina. It’s a chance to see a team that I root for in person, and since I don’t live close to Ann Arbor, those chances don’t come very often without significant travel. It wasn’t cheap – over $100 to sit in a so-so seat – but as I’ve written many times, cost and value aren’t the same

Yes, the game will be on TV and I could just stay home and watch it, as I do many of their other games. In fact, as a person who made a living in the sports TV business, I often ask myself why people both going to games now at all. After all, it’s expensive, it’s time-consuming, and the viewing experience is often much better sitting at home. I know from my time at a league that clubs are well-aware of this and they try to make the game-day experience worth the time and money, and many do. But the real reason I and other fans go to the game is something that any of us can bring to our business: authenticity.

I’ve been to hundreds of sporting events. I’ve been to hundreds of concerts. They’re often forgettable – your team getting shellacked or a bad night for a band. But every time the experience is real, and part of that is sharing it with thousands of others. Some bands forget this – they use a lot of recorded sound in their show, often including vocals. Some teams come out tired and slow – maybe it’s their third game in four days. No magic there because in neither case are we seeing the real deal – an organization performing at its full potential. The fans know it too – there’s no electricity in the building (and in sports, there’s often a lot of negative energy expressed as booing). People want experiences, and especially experiences they can share.

This is something any business should remember. Customers want something real. They can tell when we’re “fake nice” or when we’re being unresponsive. They want consistency too. The fan who pays for the “off night” goes away unhappy and is unlikely to return. As our lives get more virtual, I think we all crave genuine things, experiences and businesses among the things for which we hunger. You?

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Filed under sports business, Thinking Aloud

You’re Bacon Me Crazy

This Foodie Friday, I come to you with a perfect example of how businesses often get things wrong. I hear you wondering how anything involving bacon can go wrong, but stick with me here and I think you’ll understand my distress.

English: Uncooked pork belly bacon strips disp...

(Photo credit: Wikipedia)

It was widely reported this week that scientists in China have created 12 healthy pigs with 24% less body fat. If you care to read all about it, the results were published Monday in the Proceedings of the National Academy of Sciences. I didn’t bother to read it because it makes me both sad and angry. From my perspective, most pork we get in this country is already too lean. Fat is flavor, and most of the pork we get has very little. The exception is bacon.

I use bacon the way many cooks do. Sure, I bake it and eat it as part of a full breakfast (put a little Old Bay on those bad boys before you bake them – a revelation!). Rendered down, it yields lovely fat in which to saute your aromatics and get any recipe off to a great start. Wrapped around a lean cut of meat, it prevents that cut from drying out. And who doesn’t love to toss some lardons into salads, omelets, pastas, grilled vegetables, or potatoes? Lean bacon defeats the entire purpose of the cut!

OK, most of the above was a little tongue in cheek, but there is a real point to be made here. When we try to “improve” a product we just might end up destroying it. Lean bacon is a solution in search of a problem, and that is the kiss of death to any offering most of the time. Putting aside the issues many people have with genetically engineered food (this was achieved using CRISPR), there are already many lean alternatives to bacon. OK, it might be a stretch to call them “bacon” but they exist.

None of us can afford to waste time figuring out a problem for something we’ve produced. The process works the other way around. Listen for problems that your intended customer base is having and then find a solution. Much of the time, successful entrepreneurs had the problem themselves, found a solution, and then helped others with the same problem. The camera phone, for example, came about when a new father wanted to send a photo from the delivery room (true story).

As you’re moving along in your business, ask yourself if you’re solving peoples’ problems or if you’re trying to find a use for your solution. Hopefully the former!

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Filed under Consulting, food, Huh?