Tag Archives: business thinking

Finishing In Style

Let’s think, this Foodie Friday, about how dishes are “finished.” No, I don’t mean how you eat every last bit off of your plate. Instead, I mean those last few things you do as a cook when the dish is done but you’re adding what I would call a lagniappe of sorts – a little something extra at the end, almost a gift.

For example. Let’s say you’ve just cooked your guests some perfect steaks. Now you could certainly just let them rest and present them to your hungry diners or you could finish them in style. Maybe you make an herb butter which you allow to melt over the warm steak, adding another layer of richness and flavor. Maybe you provide a container of truffle salt, adding heady umami to the dish.

We’ve all been offered grated cheese to go on our pasta. That’s finishing in style in my book, especially if the cheese offered is correct for the dish itself and not just the same cheese for everyone (and heaven forfend that’s it’s grated ahead of time!).

Finishing in style can be as simple as offering a drop of true balsamic vinegar for aged cheese or even ice cream (don’t knock it until you’ve tried it). What I think it really shows is that the cook is willing to go the extra steps to make a meal memorable.

It’s the same in business. When was the last time you hand-wrote a thank you note to a customer for an order or sent a gift to a new client to welcome them aboard? When I joined my franchising network and finished training, a lovely bonsai tree showed up at my house to congratulate me. Did it make me work any harder? No, but sure showed me that I had exercised great judgment in joining the group that I had. That was finishing in style.

Business today is way too competitive for any of us not to think about the lagniappe – the something extra. How can we finish each transaction – each dish we prepare – in style?

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Filed under food, Thinking Aloud

Shared Interests

You can call shared interests believing your own BS or you can call them eating your own dog food. I like to think of it as having skin in the game, a phrase coined by Warren Buffet referring to a situation in which high-ranking insiders use their own money to buy stock in the company they are running. I use it in a much broader context and it’s something you should be looking for at every turn.

Photo by rawpixel.com

I can’t tell you how many companies paraded into my office when I was in corporate life promising to solve issues we might be having with revenue generation, audience measurement, or dozens of other common problems. Many of the offerings were actually quite interesting although not yet deployed in the real world to any extent. If I was interested but skeptical, I’d usually make an offer somewhat akin to this:

I like your product but it’s awfully difficult for me to stroke out a check on something that is promising but unproven. So let’s do this. You provide the product and service as you say and I will pay you a much lower fee (or nothing!). However, if you deliver the results you say you will deliver, we’ll set up a success fee that will pay you more than you’re currently asking. In fact, if your numbers are right, you’ll earn double what you are charging.

In other words, I wanted them to have skin in the game. I wanted our interests to be perfectly aligned and I wanted there to be consequences for us both if we didn’t achieve what we set out to do. The reality is that you should always ask yourself who has what skin where because most businesses do their damnedest to avoid any sort of risk by putting in some skin. Sure, they pay lip-service to the notion of entrepreneurship but there are few who have put their money where their mouth is and invested into the tech ecosystem or directly into startups. Pay attention – much of the time the investment comes only after the product has proven itself or is a direct ripoff of something that’s already successful. I call this the second penguin strategy (you don’t want to be the first penguin that jumps in the water since there may be predators lurking).

If you’ve ever played cards, inevitably there is a kibitzer around. You know – the person who looks on and often offers unwanted advice or comment. They have no skin in the game. There are kibitzers in business too – you can find them writing for many trade publications – and you might even have some in your company as partners or clients or even employees. Not many companies took me up on my offer to make them more money. The few that did were fantastic partners and I still speak with some of the executives from those firms almost 20 years later. Having skin in the game made all the difference. What do you think?

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Filed under Consulting, Helpful Hints

Ghost Kitchens In The Sky

Our subject this Foodie Friday is kitchens, specifically kitchens that service your takeout order. Think about it for a second. You place an order for a meal to go at your favorite dining establishment. In some cases, you go there to pick it up. In many other cases, even years ago, you’d order a pizza or some Chinese food and it would arrive at your front door looking just as it did when you picked it up yourself. You probably didn’t think about if it was actually cooked in the restaurant’s kitchen since it looked and tasted the same as when you ordered at the place. In fact, it almost certainly was cooked by the same hands that were serving the dine-in customers at the same time.

Fast forward to today. With the advent of food delivery services, many more establishments are offering food for delivery. Most sit-down places have experienced a big jump in takeout, so much so that it’s become a significant percentage of their business. I think it also has to do with our general impatience these days. Who can sit still long enough to enjoy a meal cooked to order? So, many places are asking themselves why not set up a kitchen specifically to handle the delivery business rather than expand the restaurant kitchen to handle the additional orders. Ghost kitchens have arrived.

As one article described them, ghost kitchens are delivery-centric cooking spaces without the added hassle of in-person dining that a traditional restaurant brings. Think of them as cooking-focused WeWork spaces. Lower rent, no front of house, no cashiers and no customers tapping their feet waiting for their food are all part of the appeal. As long as the food tastes the same, why would the customer care?

I could write another 1,000 words about ghost kitchens and the pros and cons but the point I want to make today is that they exist because restaurants are rethinking their businesses. If they can grow at better margins and lower costs by doing that rethinking, can’t you? Some pretty big players – Google Ventures among them – are getting involved, and you know it’s just a matter of time before Amazon through Whole Foods starts delivering all those great dishes you can buy at your local store for a take-home or to work meal.

Is it inconceivable to you to share accounting, legal, and other back-office functions with another business that’s non-competitive? A ghost kitchen for your business? How about having your sales staff pick up some lines that complement yours and offer both to customers that might be interested?

If you’re not thinking out of the box, the box might just become a coffin. Instead of a ghost kitchen, it might be a ghost business!

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Consistently Human

It’s Foodie Friday and as we head into Memorial Day weekend here in the US, let’s pause a moment to remember all those who made the ultimate sacrifice so that we can enjoy our meals this weekend.

One of the things I’ve written about with respect to restaurants is the value of consistency. One of the best compliments I can pay to a restaurant is in saying I’ve never had a bad meal there. It’s a reflection on consistency – of the raw materials, of the service and, of course, on how the chef has his team operating in producing the same dish to the same standard. In a weird way, many fast-food places are better at doing that than many restaurants even though the cooking staff tends to be younger and less-trained in culinary arts. Even weirder is the notion that some places have gone to robots to do some of the cooking.

One of my favorite hangouts is a restaurant here in town. The food is consistent even if there is sometimes an overcooked burger or a dish that wasn’t plated with enough care. I like that I can see that people were involved. This is what I wrote three years ago about that:

Business needs to be about people.  When I eat, I want to taste the cook’s soul. I like the imperfections and that my pizza is different from how it will be the next time I order it. I enjoy personal service and the quirks of every individual with whom I deal no matter what the business. We need to be responsive to each customer in a human way. It’s why customer service agents reading from a script are just as bad as automated menu trees in my book. Who doesn’t prefer speaking with an unscripted human?

Many of us in business watch the numbers like a hawk for any changes. We might not pay as close attention to the people who make those numbers happen. If you want to make improvements in your numbers you need to understand human behavior – that of your staff and that of your customers. The numbers are a reflection of that. They don’t just happen.

It isn’t machines or numbers we remember this Memorial Day. It’s people. Let’s stay human out there!

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Filed under food, Helpful Hints

1,2,3

I’m back! I didn’t post anything last week because I went on my annual golf outing with my Board Of Advisors. All is well except my golf game.

I don’t know if you saw anything about a survey that was released last week. I did and I made a note to make it my first post upon my return because it makes a number of points that I think any of us could find useful in business. The survey was run by Civic Science which has been conducting online polling since 2008. It was a very simple question and the responses were astonishing, at least to me.

Should schools in America teach Arabic Numerals as part of their curriculum?

That’s the question. They surveyed over 3,600 people and over 2,000 of the respondents said “no.” That came out to 56% of respondents saying we shouldn’t teach the numerals we all use every day. Yep – those are Arabic numerals. Interesting, right? Kind of scary too because it reveals what happens when you allow yourself to answer a question based on your inherent feelings (or prejudices) without having a full understanding of the question being asked.

It wasn’t just a test of prejudice against the word “Arabic.” They also asked about teaching a Catholic priest’s theory on the origin of the universe. While obviously, it’s a much more obscure fact (the Big Bang theory was his idea), it shows once again that people will answer something without enough (or any) information based on inherent biases (53% said “no” to this, which is taught every day).

How often does that happen in your business setting? Someone starts to say something in response to a question in a meeting and suddenly it’s quite obvious that they have no idea about what they’ve been asked. It’s not just people answering the wrong question either. It’s quite possible to have an understanding of the question but no grasp of the facts required to answer it.

So here are three words (3 in Arabic numerals) to keep in mind: I don’t know. They can be hard to say, especially when you have a knee-jerk response to a question. But ask yourself if that response is based on fact or on your existing bias. You might be surprised what you’ll learn along the way as well as prevent your team from making a bad decision. Make sense?

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Filed under Helpful Hints, Huh?

Balsamico And Business

The question, this Foodie Friday, is have you ever had true balsamic vinegar? Not the junk they sell at the supermarket that’s probably made outside of Italy, but true balsamic vinegar that bears a D.O.P. stamp, a European Union certification that guarantees an ingredient’s quality, production, and place of origin. In the case of balsamic, it must be made in Reggio Emilia and Modena, Italy, using traditional methods, and production is overseen from beginning to end by a special certification agency.

I won’t go into detail about the process, but the key takeaway for today is that it takes a long time to make. Like a dozen years or more. Every step of the way, the amount of vinegar in the barrels is reduced as the product concentrates. You need to take the long view of what the business will be if you’re going to start producing this stuff! It requires patience, resilience, capital, commitment, and much more.

The same can be said about a winery. Planting vines, getting them to produce, bottling and aging all take time. You need to think long-term. I think the same sort of thinking is involved when you go to make some dishes. Great barbecue takes a long time. So does a great Bolognese Sauce (even with a pressure cooker – believe me, I’ve tried!).

Whether it’s Balsamico or business, there are no short cuts. Great things take time, generally more than we’d like. As we often see in today’s world, moving fast and breaking things often results in a disaster even as the company expands rapidly. The fall is often as fast as the rise.

Maybe my thinking is more tortoise than hare, but I’m a believer in taking the time to get things right. I play the long game. As with balsamico, you need to commit to the process, as do all the stakeholders. There’s a reason the good vinegar sells for $200 an ounce, and once you’ve experienced it you’ll understand the difference between it and the $16 bottle you get at the supermarket. Greatness takes time, both in the barrel and in business, right?

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Masking The Message

Chase Bank did something really dumb the other day while they were actually doing something smart and necessary. It’s a good lesson for any business that how you communicate is every bit as important as what that communication entails.

Chase tweets out something on Mondays hashtagged #MondayMotivation. This week they attempted to inject a little humor into something that really isn’t humorous for the folks who face it: a depleted bank account. Chase tweeted out a fantasy dialogue between a consumer and their bank account. The customer wonders why their bank account is so low and the bank account replies, and I’m paraphrasing, because you spend money on things like buying expensive coffee and dining out and taking taxis when you could walk. The customer replies “I guess we’ll never know”. It came across as snarky and patronizing, especially coming from a bank that makes millions in profits on the fees charged to their customers for ATM use and overdrafts (not to mention a multi-billion dollar bailout from taxpayers).

Politicians jumped in, as did a lot of pundits. Frankly, when I heard about it and the responses to it, I thought it was too bad that a good, important message got lost in a bad presentation. Many younger consumers (and quite a few older ones) don’t realize that making coffee at home can save them hundreds or thousands of dollars a year, as can walking and bringing lunch to the office or learning to cook at night. Those $4 lattes add up and many younger people never learned the financial management skills as they matured that one needs to cope with the money demands that adult life makes. While I don’t discount the effect that stagnating wages and creeping inflation have, having the skills to think through the bigger picture can help.

Any business needs to ask itself “what baggage do I carry” before they message their customer base. Are they angry about anything? Smart businesses constantly have their ears to the ground to listen for any disruption in the force. They monitor social media, their own customer service reps, and the news media generally. Money, or the lack thereof, is one of the most sensitive topics the bank could have addressed. Snark, condescension, and arrogance are rarely the right approach, even when the message is spot on.

Chase was smart enough to delete the tweet and replace it with something humble – “Our #MondayMotivation is to get better at #MondayMotivation tweets. Thanks for the feedback Twitter world”. That’s something every business should constantly try to do – get better – don’t you think?

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Filed under Consulting, digital media, Huh?