Tag Archives: business thinking

Faddie Friday!

It’s Foodie Friday and the topic today is really Faddie Friday. What got me thinking about food fads was hearing yet another discussion about keto diets. You know – low carb, no carb, no fun. I’ve been doing a variant of this for many years (and lost a lot of weight) but it actually goes back to the invention of the Atkins Diet in 1972. I’m not a full-blown keto person but I do watch my carbs and try to cut out sugar and foods that I know are high on the glycemic index.

Atkins is far from the only food fad. At one time, fondue was all the rage. I’ll bet if you dig deep enough into a closet or your garage you’ll find a fondue set, maybe one your mom handed down. Nothing like a communal bowl of hot cheese, wine, and seasonings, right?

Now we have fads such as juice cleansing, kale, and bacon, which down here in the South is not so much a fad as it is a way of life. What’s interesting to me is that fads aren’t the same thing as trends. You can think of it in business terms. Fads are those two-day blips in your revenue while trends are the steady direction of those revenues. Fads are jagged, trends are smooth. Food fad – kale. Food trend – healthier eating. Got it?

You need to think in those terms as you approach your business and how you run it. I’ve lived through several management fads and they weren’t all as benign as kale. Ever hear of Six Sigma? How about Business Process Re-Engineering? Matrix Management? Or one of my absolute favorites, MBO – Management By Objectives. Even though it was created by one of my favorite management people, Peter Drucker, it was cumbersome, time-wasting, and not quick enough to react. Obviously, I agree with much of the thinking behind it but the actual implementation could bog you down.

I bring all of these up (and it’s far from an exhaustive list) to remind each of us that we have to watch out for fads. I was told by a senior executive many years ago that the internet was both a fad and a scam. He had a little trouble figuring out the difference between a fad and a fundamental change. Take the time to distinguish between the two and you’ll be far better off than those who don’t. Make sense?

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Filed under Consulting, food, Helpful Hints

Thank You For Your Service

Yesterday was Veteran’s Day. I don’t typically post on Sundays but I did want to honor all of those who served by putting out something, even if a day late. This is my post from 2009 (yes, I’ve been at this for quite a while) and I like it as much now as I did then. Thank you for your service if you served and please remember to thank a vet, even if it’s a day late.

Today is Veteran’s Day, a holiday which was created to commemorate the end of “The War To End All Wars.” While that part didn’t work out so well, it’s a worthy celebration of our men and women who have served and are serving in the Armed Forces. My Dad is one of those vets. He fought – as Archie Bunker used to say – in The Big One – WW2. And while he’s taught me a lot over the years, he and his fellow vets teach us another really valuable business lesson to go along with all the others.

Veterans Day 2007 poster from the United State...
My father got out of high school and went into the service like most of the young men (and many young women) of his generation.  They put their country ahead of themselves realizing that the answer to “what’s in it for me” lay in the preservation of the principles on which this country was founded and which made everything else in their lives possible.

The really inelegant analogy I want to make has to do with how we approach business.  While the stakes in business aren’t nearly what they were and are for the vets, there are still people making that same decision today both in and out of business.  That decision is to put something else – your customers in the case of business, your country in the case of vets – ahead of yourself.  I’ve written a lot about everything from lousy customer service to marketing messages that shout “me me me” and not “you you you.”  That’s so 1999, isn’t it?

Converse, don’t spew.  Listen, don’t talk.  If I can’t get you to engage in a conversation and put others first because it’s smart, how about to salute the vets?

Any takers?

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Filed under What's Going On, Thinking Aloud

The $2 Difference

This Foodie Friday sees us trying to answer the all-important question about whether to tip on the pre- or post-tax amount of the check. I suppose in some ways this falls into the category of “is a hot dog a sandwich?” but it has practical implications for the people on the receiving end of those tips, your waitstaff.

The thought for this was put in my head by an ongoing column on The Takeout, called Ask The Salty Waitress. Rather than getting caught up in the philosophical arguments for and against tipping off the taxed amount, she does something that I have often urged people in business to do: look at the practical and not at the hypothetical. She takes us through the math of the financial implications of tipping each way. In the end, it amount s to a $2 difference in a high tax area on a $100 check. Her feeling – and mine – is that the $2 probably means a lot more to the tippee that to the person eating out in a nice place.

This happens in business all the time. I’ve seen dozens of times when a meeting devolves into a heated argument over something in a contract. Everyone is standing on their principles but neglecting the real world. Often, when you can get the meeting to focus on the actual differences of conceding a point and getting something done vs. standing on principle and prolonging the discussion, the actual differences are actually pretty insubstantial, like the $2 tip.

Call me a pragmatist or call me someone who prefers to spend his time on things that warrant it, but my first instinct is always to figure out what the real outcomes are. If the result of taking either path is to have you end up in pretty much the same place then I’m taking the path of least resistance. You?

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Filed under food, Thinking Aloud

Going Negative

It’s a bit less than a week before Election Day and I, for one, can’t wait for the elections to be over. That will mean that the political ads will end too, and that can’t happen soon enough.

Putting aside politics, the vast bulk of these ads are horrible marketing. One thing that marketers learned long ago doesn’t work is badmouthing your competition; yet damn near every ad I see across the multitude of channels I watch and stream is 30 seconds of negativity. These folks spend their allotted time distorting positions, taking things out of context, and flat-out lying in many cases. The candidate-produced ads are bad and the PAC-produced ads are even worse. You’d think they’d stop. In 2007, the Journal Of Politics did a study of negative ads. They found:

…that negative ads tended to be more memorable than positive ones but that they did not affect voter choice. People were no less likely to turn out to the polls or to decide against voting for a candidate who was attacked in an ad.

While campaign consultants seem to think that these ads work, science proves otherwise. Of course, there are many folks out there who don’t believe in science but that’s another screed…

It’s bad marketing. Going negative makes you look petty and unprofessional. Playing up your strengths always works better than bashing a competitor’s weaknesses. Good marketers explain how they are going to solve your problems. I think good politicians should do that too. I don’t want “small” people representing me. If you can’t run on your positions and your solutions, then how am I to trust that you can outperform the one running against you?

This applies to your business as well, obviously. Do you see a lot of non-political negative ads? No, you don’t. There are many good reasons for that. Do you see a lot of false claims in non-political ads? You sure don’t – there are laws against it. The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true. It seems to me that many political ads do just that, unfortunately.

Politicians may be brands, but they sure don’t advertise as if they were. Going negative isn’t particularly helpful in non-political marketing and it’s just as bad in politics. That’s one man’s opinion. What’s yours?

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Filed under Consulting, Huh?, Thinking Aloud

He’s Due

The World Series just concluded. Congratulations, Red Sox fans and boy, how it pains me to say that as a life-long Yankees fan. Watching baseball reminded me of something we used to say back when I played baseball. When a guy was in a hitting slump we’d often say “he’s due.” What we meant was that according to his batting average he had taken enough at-bats that it was time for a hit. After all, if his average shows he gets 3 hits every 10 times at bat and he hadn’t had a hit in 15 plate appearances, statistically he should get one now. We were convinced he was due.

That, dear readers, was our youthful display of The Gambler’s Fallacy. We were laboring under the misconception that what has recently occurred will affect what occurs next even if the two events are unrelated. For example, if flipping a coin nine times results in nine instances of “heads,” you might think “tails” is due. Sorry – probability still applies and there’s a 50 percent chance the tenth flip will be heads regardless of what has happened before.

Stop and think about how often you or someone you know in business makes the mistake that if something happens more frequently than normal during a given period, it will happen less frequently in the future (or vice versa). Salespeople refuse to accept higher quotas after a good year, holding back revenue projections which holds back hiring and spending which results in a missed opportunity.  Marketers keep spending against historically good targets after a few campaigns don’t result in the expected results rather than acknowledging that the market may have shifted. Financial people let their insurance lapse after a disaster figuring that if they had a hurricane hit in their area which rarely gets hurricanes, the likelihood of another one hitting is very low. As someone pointed out, the term “100-year flood” doesn’t mean a flood happens every hundred years; it means there is a 1% chance of it hitting during ANY year.

The odds of a disaster happening might be very low but we buy insurance and, more importantly, we make disaster plans. The failure to hit a revenue target after three bad quarters doesn’t mean “you’re due” to have a huge fourth quarter. It means you need to make adjustments. There is no question that luck plays some role in business success and failure but that’s not a business plan.

In the great baseball movie “Major League”, the manager brings in a pitcher to face a batter that has gotten many hits off of him in the past. When the catcher questions his choice, the manager says “I know he hasn’t done very well against this guy but I got a hunch he’s due.” That might be how you want to run your baseball team but it is NOT the way you want to run your business. It worked out in the movies but that’s not real life.

Make sense?

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Filed under Reality checks, Consulting

Country Omelets

It’s Foodie Friday and for some reason, I’ve got omelets on the brain. I’m not talking about the egg concoctions they’d serve you at the local greasy spoon although as you’ll see I’m a fan of those. No, I’m thinking about the French Omelet and as it turns out, there is a business point that comes along with it.

If you’re not familiar, a classic French omelet (or omelette) has, as Serious Eats put it,  a smooth, silky exterior with little to no browning that cradles a tender, moist, soft-scrambled interior. It is a dish that relies almost exclusively on technique. As with any dish, you want the best ingredients, but unlike many of the foods about which I’ve written over the years in this space, this dish is a fussy little thing and without knowing the proper technique, producing the unblemished golden-yellow eggs with an ultra-creamy texture is almost impossible.

There is no person better equipped to explain the proper technique than the great Jacques Pepin. Here is a video in which he makes a country omelet (what you or I would make at home) and the classic French omelet:

With the first one, a competent 6 year old could handle the technique (or lack thereof). I’m pretty sure that the second technique would involve a fairly large mess.  So what does this have to do with business?

I’m not going to deny that there are “techniques” in business. Where we see them most often is in the sales area. I recall going through various sales training sessions years ago where I was taught closing techniques, questioning techniques, objection handling techniques, and so on. The problem is that many of these techniques are used without an ethical overlay. Salespeople often look at them as ways to trick people. Obviously, if you have the right customer, you’re selling them something that will solve a problem they’re having. Why would tricking them be necessary?

I’m more of a country omelet businessperson. Sure, there are skills involved in what I do and you need to understand how to use the tools at your disposal. I’m far less concerned, however, with technique and more concerned with putting out a product that satisfies the basic need: someone is hungry! Is the ability to turn out a perfect French omelet impressive? It is, but it’s also way more fraught with risk. Minimizing risk while producing a great solution to a customer’s problem works for me every time. You?

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Filed under Consulting, food

Ethics And Profits

A bit of a rant today. Suppose you had a friend who lied about things. Maybe they told you that they had a great way to help your business when, in fact, their plan was to use your money to build up their own business. Maybe you gave them money to invest and they lied about the returns. Maybe you tell them information about yourself that you don’t really want public and they tell people anyway. Maybe you let them use your phone or your computer for a few minutes and they installed malware that spied on your constantly. Some friend, right?

Welcome to doing business with Facebook.

Now before you accuse me of hyperbole, let me remind you of the incredible breaches of trust that Facebook has committed over the years. If you look up “Facebook apologizes,” you get over 17 million results. They, like many companies, seem to be focused on one thing: shareholders. As one person put it in speaking about the fall of Sears:

“What’s happened is that shareholders’ interests have squeezed out other stakeholders,” said Arthur C. Martinez, who ran Sears during the 1990s and was credited with a turnaround. “The mantra is shareholders above all else.”

What happens to workers doesn’t matter. Amazon gave raises with one hand and took away stock grants with the other. What happens to partners doesn’t matter. Facebook begged marketers to use their platform to distribute content and then, once the platform had grown to an unimaginable size, cut off marketers who didn’t pay them from access to their audience. What happens to users doesn’t matter. Alphabet, Google’s parent, has over 88% of mobile apps gathering data for them whether users know it or not. Ever wonder how the ads Google serves you with a search seem to tie to something you were doing on a news or productivity app that had nothing to do with Google or search or even ads? Here’s a study that will explain it.

Why is it so hard to follow a moral compass to profitability for many companies? If the bulk of non-tech people truly understood how their data is gathered and used, they’d go back to flip phones. Why not put your customers first and treat them as you’d expect to be treated as a customer? Why not reward employees so that they’re doing better as you’re doing better? Why not put partners’ interests on a level footing with your own so that deals are equitable and profitable for you both? Why not allow vendors to make an honest profit? Without those four things – customers, employees, partners, and vendors – what the shareholders have will be worthless pieces of paper and not an interest in a profitable, growing enterprise.

My friends don’t lie to me and I don’t lie to them. We’ve had our share of messy moments because of that but we’re still friends because of that honesty. We need ethical standards in business every bit as much as we need profits; probably more so. OK, rant over, but do me a favor and think about that, won’t you?

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Filed under Huh?, Reality checks, Thinking Aloud