Tag Archives: Reality checks

A Matter Of Trust

If you’ve eaten recently you might want to wait to read today’s Foodie Friday Fun. As always on Friday we look at something going on in the food world and attempt to broaden the lesson beyond food. Today’s topic is food-tech. I’m not talking about the robots who are making burgers or pizzas (we’ve already visited with them). Today it’s the food itself and how technology is changing the very nature of food.

Specifically, I want us to think about food made in the lab. Not new flavors of Pringles or the latest batch of Triscuit varieties. I mean things such as chicken and beef made in a lab with cells from living animals. Yes, such stuff exists and while it still costs about $9,000 a pound to make, in five years the scientists believe they’ll have the costs down to be comparable to what we now pay for chicken.

I’m also talking about GMO‘s – genetically engineered foods like the “impossible burger” that “bleeds” yet is made from plants or the apple that won’t brown when cut due to a gene beings removed. There are next to no studies on if these foods are safe over the long term nor are the few regulations able to keep up with the fast-changing developments in the field. So what we’re left with is “trust me”, and that’s something any of us in business need to think about.

Do I think consumers are begging for apples that won’t brown? No, but I do think there is ample evidence that they want their food to be safe as well as to know where it comes from and how it’s made. That same principle applies to your business as well. Consumers will trust you up to a point. In the case of food, they believe that the FDA and other governmental organizations are protecting them (which is laughable but another topic). In your case, it might be that you’ve built up trust over a number of years. In fact, trust is one of the most important assets a company or brand has. When it’s lost, as in the case of the Volkswagen diesel fiasco, the company risks disappearing. There are many excellent pieces how brands are losing trust – I’d encourage you to read this one as a start.

From my perspective, food companies should spend less on developing GMO’s and more on transparency. Educate us, don’t feed us stuff that might not be safe. Build trust. Sound like a plan?

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Filed under food, Reality checks

Mastering Ourselves

Another major championship in golf, another screed about a business lesson learned from watching that championship transpire. Sergio Garcia, a Spanish golfer with a nearly 20-year history of frustration and failure in major championships, won The Masters yesterday. What’s surprising about the win is that it took him so long. He’s won 21 times around the world and has been a fearsome force on European Ryder Cup teams for a long time.

2011 Masters Tournament

(Photo credit: Wikipedia)

His skill was never in doubt, and yet five years ago at this very tournament, he stated that he didn’t have what it takes to win major championships. What happened and what can we learn and apply to our own endeavors?

Major championship golf is often described as “an examination,” testing both one’s game and one’s character. Sergio has always had the game but what he lacked was the character to deal with the adversity one faces along the way in any major. That’s why he gave exactly the right answer when he was asked yesterday what he liked best about how he won: “the demonstration of character.” Like every champion, he hit some awful shots. This time, however, he stayed calm, stayed positive, made a plan, and let life go on.

The lessons for any of us are clear. Skill and competence can take us a long way but to break through to another level we need the right attitude. We need to develop that maturity and character to deal with setbacks, both self-imposed (hitting a bad shot) and external (a competitor hits a great shot). Control what we can, deal with mistakes (we all make them), and remember that someone else doing well doesn’t mean that you’re doing badly. It might just mean that you have to change your plan and do better to get ahead.

Sorry if I’m becoming predictable in writing about golf after a big tournament, but what Sergio’s win said to me about all of us and business thinking was something I felt I had to share. He had already mastered the game years ago; yesterday he mastered himself. You agree?

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Filed under What's Going On, Thinking Aloud

Getting Elected Isn’t The Win

The big news at the end of last week had to do with the withdrawal of a bill that would have changed the laws regarding health insurance in this country. If you’ve been here in the screed before you know that we don’t do politics, so I’m going to refrain from any commentary for or against what happened. There is, however, a pretty good business (and life) lesson to be taken from Friday’s activities.

One thing you heard over and over was that the folks who wanted to change the existing law had 7 years to come up with a plan that would be better. It took them 7 years to control both Congress and The White House, thereby assuring that their plan would become law, assuming, of course, that it was palatable to the members of their party. It wasn’t, and so it hasn’t (become law, that is).

What can we learn from this? That it’s easier to win an election than it is to find the consensus you need to run the government. Winning is easy; governing is hard. The same thinking applies to managing a business. Becoming a manager is easy; managing the business is hard.

I met with a potential client last week who had recently been promoted into his job. He’s a smart, young highly motivated guy. In the course of our conversation, he mentioned that he was having some trouble adjusting to his new role and was finding it difficult to get things done as quickly and efficiently as he wanted. I told him that I had suffered from the same thing 35 years ago when I was handed my first department to run. Getting the job was a lot easier than doing the job.

What does that mean for you? If you’re looking for that next promotion, you might want to focus on the challenges of preparing to do the actual work rather than the challenges of getting a promotion. Trust me: the powers that be will appreciate your focus on execution and that will increase the chances of that promotion.

If you’re running your own business, a focus on execution is a good thing as well. Satisfied customers are more important that finding lots of new ones. There are tons of studies that show that using resources to keep existing customers happy is more profitable that spending resources on finding new customers (it costs 5x more to find a new customer than to retain one!).

Getting elected or promoted to a position isn’t really the win. Getting stuff done, whether it’s in your cubicle or on the floor of Congress, is the real test, don’t you think?

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Filed under Reality checks, Helpful Hints

My Totally Fake Life

I came across an article last week that I found disturbing. I don’t think it’s news to any of you there that it’s possible to buy fake followers on the various social media platforms. You can buy hundreds or thousands of “followers” on Instagram, Twitter, or Facebook fairly cheaply. I had assumed that this was something that some (dumb) businesspeople did to make their metrics look better. More on that in a second. The article set me straight.

What it said was that researchers at:

Huron University College in Ontario, Canada, who surveyed around 450 participants ages 18-29 through an online polling platform, and found that 15% admitted to buying “likes” from Web sites for their Instagram profiles…25% of respondents said they engaged in digital plastic surgery before posting photos.

Yikes! I guess these people figure that by having large numbers of people following them on some platform that they appear to be more influential. The reality is exactly the opposite because it takes very little effort to figure out that those people are fakes. Running a Twitter handle through Twitter Audit showed me that some person who claimed his million plus followers as a reason to do business with his had, in fact, 96% fakes in that million. It’s ego gratification, the same reason why people lie about their age or their weight or name drop, and it makes for a serious level of insecurity. And yes, there are other tools for other platforms to help spot fakes.

The same can be said when we do this in our business profiles. Some warped social media person will buy likes to show the boss that they are becoming more popular and that the efforts they’re making to garner new followers are paying off. Of course, engagement rates will drop off to nothing (those fake names don’t interact), and in fact, could do your brand harm by becoming spammy through your account.

It’s a little frightening that many of us feel the need to live a totally fake life online. The study found that 31% of respondents said they edited out all the boring details to make their life seem more exciting, and 14% said they specifically craft their profile page to make it seem like their social life is much more active than it actually is. Maybe it’s possible that the people who are posting the most are actually living the least glamorous lives?

Maybe one benefit of getting older on a personal level is the realization that the only one with whom we’re competing is ourselves. More “stuff” – cars, clothes, or followers – can mean less happiness. On a business level, more can be great but fake never is. Your thoughts?

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Filed under Reality checks, Huh?, Thinking Aloud

Unlimited Gall

You might be aware of the battle going on in the wireless provider space which revolves around “unlimited” service. Yes, I meant to put unlimited in quotes because as it turns out there is no such thing. I’ll explain the details in a second but what this represents is mirrored in other businesses too and is a ridiculous bit of anti-customer behavior in which none of us should engage. Let’s see what you think.

First, the phone war. Verizon and T-Mobile are the primary protagonists. Verizon announced it was bringing back unlimited data so you could stream video on your mobile device to your heart’s content. Of course, as one article reminded us, unlimited is actually not:

“Unlimited” data also continues to be a misnomer. If you use more than 22GB of data, Verizon may throttle your connection. You also only get the $80/month price if you sign up for Autopay. If you don’t, it will cost $85/month. While this includes the $20 fee for adding a line, it doesn’t include your phone’s payment plan, so if you want to pay monthly to buy a phone, it will cost more.

T-Mobile responded with changes to their own so-called unlimited data plan. While the plan was unlimited previously, it added on charges for video quality over 480p (that’s not great). It also charged you extra to use your phone as a high-speed (meaning 3G quality) hotspot. It slowed the data down before. In the new plan, those limits are gone but T-Mobile says subscribers who use more than 28GB of data in a given month may see their speeds reduced due to “prioritization” in congested areas. In short, using the word “unlimited” is crap. There are still limits, and if you’re a consumer you have the right to expect that there really aren’t.

The phone companies (and Sprint and AT&T aren’t much better) aren’t the only businesses that do a form of bait and switch. It’s no secret that what you’re quoted as an airfare is also only part of the story since there are fees for bags, boarding passes, seats, and just about anything else depending on your carrier. The airlines say the fees are optional. Yeah, sure. And pay the fee at the airport and there is a fee to pay the fee!

Ever buy tickets to a show online? Convenience (whose convenience?) fees, printing fees, etc. Ever book a hotel room? Resort fees, safe fees, service fees, and more. My bank charges my business account a monthly admin fee even though they make money off the money I have in the bank. My cable operator charges me for sports channels I can’t refuse to take.

All of this is a long-winded way of saying that businesses need to be upfront about their true costs to consumers or face a backlash when their dishonesty is discovered. I’d much rather know the true cost of something than to feel as if I’d been ripped off later. Wouldn’t you? Isn’t that how we need to treat our customers?

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Filed under Huh?, Reality checks, Thinking Aloud

Eating At The Buffet

Our topic this Foodie Friday is buffets. Las Vegas is renowned for the lavish and enormous buffets but they can be found almost anywhere across this great land of ours. There are dedicated buffet restaurants, most hotels offer a buffet option for breakfast and many bbq joints offer something similar so you needn’t choose between the 4 or 5 varieties of meat and the 7 or 8 sides they serve. Grab a plate, pile it high, and it’s on!

A Chinese buffet restaurant in the United Stat...

(Photo credit: Wikipedia)

One could make the argument that a traditional dim sum place is a buffet in reverse. Instead of you going to fill your plate from a variety of choices, the variety of choices are wheeled out to you and you choose as they go by. I don’t put salad bars into the buffet category since by definition they have a more limited focus.

My buffet strategy is to skip the “normal” foods (corn, mashed potatoes, cold cuts, etc.) and to focus on the more indigenous specialty items. I don’t want to fill up on food I could get anywhere while missing whatever makes this experience unique. After all, while I have a healthy appetite, I can’t eat everything, right?

That’s business point today. I remind many of my clients that they need to “step away from the buffet.” When you are a growing company and you have a smart, visionary leadership team, there is a tendency to want to try everything on the buffet table. In business, that means chasing down every apparent opportunity in an effort to grow. The reality is that no early- or mid-stage business can afford to do that. Resources are too precious and the time to get to profitability is ticking away. Stepping away from the buffet means having a business plan that’s focused on whatever problem it is that the business is solving for your market segment and sticking to it. Don’t take that to mean that you can’t adjust based on what you’ve discovering on your journey:  you must! But you also can’t keep changing direction as you spot another new hot plate being added to the buffet.

Like a large buffet, business can present an overwhelming number of choices. Our job as managers is to find the best of those choices that align with our business goals. It’s one thing to overeat at breakfast. It’s quite another to run out of resources before reaching sustained profitability. Step away from that buffet!

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Filed under Consulting

The Stain On Your Back

I’m going to be a little self-serving today, but it’s based on a comment someone made to me the other day. You’ll probably be able to figure out what the comment was as you read on.

Imagine that on your way to an appointment a drop of something – coffee from someone’s cup, condensation from an air conditioner – spills onto your shirt. You’d see it and deal with it immediately if it was on the front of your shirt. If it spills onto the back, you’d probably not even notice it until some kind-hearted soul mentions it. That, dear readers, is why you need people like me.

When I grew up in the business world, I had a lot of people coaching me. My immediate boss and his boss were always ready to encourage me (and not always in the nicest of tones) and help me to grow. They let me know where the less-visible (to me) stains were. That situation is less common today in a world where there are a million corporations of one as opposed to a large company. Today’s smaller companies have much less institutional memory from which they can draw as well as less personal experience on the part of the founders and employees.

Part of what I do is to coach. I’ve run into some potential clients who tell me that they don’t need coaching, just more hands to do the work. While the latter half of that statement is assuredly true, they also need someone to point out the stains on their backs. Most consultants I know don’t have a political agenda. We’re not after your job nor are we burdened with your past or present. We are charged with helping you and your business to grow. No, you can’t do the latter without doing the former. A business is only as good as the people managing it. My peers and I are there to look at your situation and to help you reach your goals.

I’ve been doing “business” for almost 40 years (yikes!). In that time I’ve made a lot of mistakes and I’ve seen a lot of others do the same. I’ve seen great managers and horrible managers. Part of what clients pay me for is an insurance policy of sorts. My experience ensures them that they won’t have to make the same mistakes I did. They get the benefit of the learning without the pain of the experience. What I and my peers bring is why football teams have coaches up high in the stadium – to get a broader perspective.

Most professional golfers have swing coaches. All sports teams do too. The coaches aren’t caught up in the second to second physical involvement that sport requires. They can see and protect your back. I can do that too, by seeing the parts of you and your business that you can’t or won’t see and by letting you know what’s going on in those blind spots. Call me?

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Filed under Reality checks, Consulting