Tag Archives: business thinking

The New Year And Business

A shofar made from a ram's horn is traditional...

A shofar made from a ram’s horn is traditionally blown in observance of Rosh Hashanah, the beginning of the Jewish civic year. (Photo credit: Wikipedia)

Happy New Year!  When I posted this last year for the second time I said I was thinking about making this post an annual thing.  I guess it now officially is.  As Jews around the world celebrate Rosh Hashanah, I thought I’d try to put what the holiday means into a business context.

Last night marked the start of the Jewish New Year.  I didn’t go down to Times Square to see if they were dropping a giant knish at the stroke of sundown – probably not.  L’Shana Tova – a happy and healthy New Year to all of you.

One of the things Jews do over the next 10 days (or at least are supposed to do) is to reflect on the year gone by and think about where it took you on life’s journey.  It’s not really as much about looking back in my mind as it is about looking forward.  Oh sure, one is supposed to think about where one strayed from life’s path in terms of dealing with other humans and human codes of conduct.  We get a day of fasting next week to get that sorted out.  But it’s also a time to think about a fresh start.  Which, of course, promoted a business thought.

When do businesses stop and enter a period of reflection?  It’s obvious when they’re changing – witness Facebook last week – but I, for one, certainly wonder sometimes if those changes happen due to the momentum of previous (maybe not so good) decisions or if they’re the result of a pause, some reflection, and a willful thought by the entire organization as to the direction.  Often, I fear, it’s the former.

Jews are to use the next ten days for reflection and repentance.  I like to think of them as ten days of self-improvement.  I’d also suggest that it would do many businesses a lot of good to build the same sort of period into their corporate calendars.  Some do – they call it the budget process – but I think that’s too selective in terms of participants and goals to do much good.  Some smart CEO needs to declare it New Year’s Day for the company once a year and get everyone to do the same sort of professional reflection that many of us do on the personal side.  Identify your sins (figuratively speaking) and atone.  Faulty customer service, weak brand identity, bad employee relations, products that aren’t optimal, fostering an atmosphere of fear – these are all good places to start.

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Filed under Thinking Aloud, What's Going On

Why Should They Bother?

If you’ve spent more than a few minutes here on the screed you’re aware of my unbridled passion for golf. As any golfer will tell you, when all else fails and your game hits rock bottom, it’s time for new equipment.  As sure as the sun will rise it’s always the tool and not the carpenter. From where does one buy that new driver that is going to solve all of one’s issues? The answer to that is actually instructive for most businesses.

A golf ball.

(Photo credit: Wikipedia)

In general, one either goes to the pro shop at your local club or to a golf store. Of late most of those golf stores are located in cyberspace. This has hurt the big brick and mortar golf chains badly. In fact, not long ago Dick’s laid off 500 PGA Pros and is scaling back its golf business.  After all, the irons are the same not matter if you’re buying them from the manufacturer (who will sell direct), a big box retailer, the golf store, eBay, or your pro shop.  Suddenly, while every brand of club is different, once you’ve decided on the make and model the club itself is the same no matter which source you choose.  This has placed pressure on margins.  In this case, as is the case in many other businesses, the internet wins every time.

The real question is why should a consumer bother going to the golf store?  In the case of Dick’s, they did exactly the wrong thing.  eBay can’t do proper club fittings – making sure the length, lie, and swing weight are right for you.  Sure, you can get golf lessons from YouTube but that’s not nearly as good as having one on one instruction.  The shop at my club will put new grips on my existing clubs, extending their life.  I’m certainly not going to mail them someplace to have that done.

In other words, every business needs to figure out why consumers should care about them – why they should bother.  Price works for businesses without a human touch.  In fact, the move toward more personalization for web-based businesses points directly to the advantage any real-world business will have: the human touch.  We’d rather speak with humans.  Don’t automated customer service lines frustrate you?  I don’t want to press 3 if my issue involves an odor of gas – I want to talk to a person NOW!

We need to think about how our brands and businesses can get consumers to care.  Otherwise we’re completely vulnerable to someone who will do what we do and sell what we do for a dollar less – free shipping included.

Make sense?

 

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Filed under Consulting, Reality checks

The Data Sandstorm

One client is in the midst of the back to school season and the data is flowing in like water over the Niagara Falls.

English: A massive dust storm cloud () is clos...

(Photo credit: Wikipedia)

There is so much coming out of web activity, social activity, email activity – where does one begin? It got me thinking about how it is like driving around in the fog or a sandstorm. The data get more dense and navigation becomes impossible.

One thing some people do to clean off the windshield is to wipe away the data.  They regularly make decisions based on gut feel or something they read that may have worked foe someone else.  Why let facts get in the way of a good story, after all?  I am not a fan of using data as a crutch nor as a shield.  It should be used to guide decision making but not as a replacement for your own vision. However, if you don’t measure the impact of whatever decisions you’re making and confronting the results of those decisions, the business is managing you and not vice-versa.

Data needs to support decisions.  When someone says we’re going to do X ask them what data they used in deciding to take that course of action.  The less data-driven the decisions was (and that’s OK), the more rapidly the action needs to be measured and the result quantified (although some of the results may be qualitative instead of quantitative).  I’ve found that just asking the questions can have a beneficial effect.

Yes, it’s inconvenient when the numbers don’t back up the course of action you (or your boss!) have in mind.  It may be inconvenient but it shouldn’t be ignored.  It may be hard to navigate in the sandstorm of data that overwhelms us but no one said business was easy.  Thoughts?

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Filed under Consulting