Tag Archives: Reality checks

Intellectual Laziness

I’m sure your Twitter and/or Facebook feeds are filled with articles and discussions from and among your friends. Mine certainly are, and what strikes me about many of them is how intellectually lazy they’ve become. That’s odd, since most of my friends are anything but. They tend to be smart and able to see nuance, yet my feeds are filled with blanket generalizations and narrow perspectives, not to mention the unchallenged fake news.

I think that laziness is becoming more pervasive in business too. Maybe it’s that our brains have been taken over by the manner in which we think in the social media space or maybe it’s just easier to paint with broad strokes since there is so much information coming at us every single day. I think that’s a rationalization. More importantly, it’s dangerous.

When we make use of generalizations and blanket statements we negate things that don’t fit into the underlying assumptions, schemas, and stereotypes of our business. This intellectual laziness is also used to maintain the status quo.

Think about how often a good idea has been crushed by someone using the words “always” or “never.” Those terms are overly broad and prevent new thinking about old problems. instead, we’d all be better served by maintaining a beginner’s mind and listening more than we speak.  It’s pretty much truism that you’ll learn more from listening than you will from talking. Taking what we hear and synthesizing new ideas in the context of the business environment is how we move forward. More importantly, it’s the antithesis of being intellectually lazy.

I think people who are intellectually lazy are toxic both in business and in the world at large. I’m making more use of lists in my social feeds to weed out those toxic folks so I can enjoy the critical thinking of others and make myself a little smarter each day. You?

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Filed under Huh?, Thinking Aloud

Eclipsing Our Sun

By now you’ve probably heard that there will be a total solar eclipse in two weeks (August 21).  This will be the first total solar eclipse (when the moon moves directly between Earth and the sun) visible in the United States in nearly four decades.

English: Total Solar eclipse 1999 in France. *...

(Wikipedia)

During the eclipse, the 70-mile-wide shadow cast by the moon will darken the skies from Oregon to South Carolina, according to Space.com. What makes this eclipse notable is how accessible it will be to many people since the path of most total eclipses falls over water or unpopulated regions of the planet. This event will go down as the first total solar eclipse whose path of totality stays completely in the United States since 1776. Too bad it didn’t happen on July 4!

Total solar eclipses supposedly have happened at notable times in history. Jesus’ crucifixion, Mohammed‘s birth, and King Henry I‘s death all coincided with a total eclipse. I’m not here to speculate on why those or other events happened simultaneously with a disruption in the Sun’s presence. Instead, I want to focus on a business thought that came to me as I thought about other effects an eclipse has.

When we fall into the moon’s shadow, birds think it’s night and stop chirping, the temperature falls, and things not usually visible become clear. The Sun’s corona, which is the Sun’s upper atmosphere, is clearly visible, as are many stars and planets often obscured at night by moonlight or all the lights turned on automatically on the ground. If you look around you, you might even see a 360-degree sunset as well. What does this have to do with business?

We all have our business “sun.” It might be our process, it might be our boss or coworkers, it might be the favorite customers that illuminate our days, provide warmth, and make survival possible, Every once in a while, however, it’s not a bad idea to precipitate an eclipse of some sort. As with the upcoming event, doing so will often make things visible that your business sun obscures. Maybe your reliance on that sun or suns is stopping you from seeing things about them or opportunities beyond them. What do you think?

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Filed under What's Going On, Thinking Aloud

Eating With Your Eyes

It’s Foodie Friday, and today’s topic is the thought that we “eat with our eyes.” While sometimes you can smell food coming, most often our eyes are the first sensory organ we use as part of eating. It’s why many cooking shows (Chopped, Top Chef, etc.) grade dishes not only on taste and creativity but also how the dish is plated and its visual appeal. Since the rise of Instagram, eating with our eyes has taken on an entirely new dimension. As The Verge reported:

For years now, Instagram has sat at the center of trends in food and beverages. Rainbow-colored “unicorn foods” are often designed with Instagram in mind…Now some entrepreneurs are taking the idea a step further, designing their physical spaces in the hopes of inspiring the maximum number of photos. They’re commissioning neon signs bearing modestly sly double entendres, painting elaborate murals of tropical wildlife, and embedding floor tiles with branded greetings — all in the hopes that their guests will post them.

I’d encourage you to read the full piece, but it does raise a business thought in my mind. I did a little search for “love decor, food sucks” and got over 2.5 million results. In the course of helping people eat with their eyes and/or to gain social virality, many of these places have forgotten their primary mission: to cook great food. “Going viral” isn’t a strategy. While it may increase your visibility, as Chipotle will tell you, so will an e-coli outbreak. Gaining followers and visibility is ideally a reflection of the quality of what you’re doing.

Designing any business or product so that visual appeal is its primary focus is designing for failure. Yes, it’s smart marketing, but as with any marketing, there as to be, as Gertrude Stein said, a there there. We might eat with our eyes, but ultimately we want something more substantial than a great visual. None of us should forget that our customers may come based on good marketing, but they stay because of great a great product or service. Don’t you agree?

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Filed under Consulting, digital media, food

Nobody Knows Anything

I’m going to start the week by running the risk of bumming you out. At least we’ll have the rest of the week to recover, right? I was looking at some analytics data this morning and as I looked at it, I realized that much of it is wrong. So is a lot of the other information this client is using to make decisions. Yours is too, by the way. I’ll explain why but along with the realization came an insight that I think will be helpful to your business.

When I began in digital we used server logs to track traffic. They were pretty accurate although pretty limited as well. Web analytics came along and the quantity and quality of the information we got about who was coming to our web sites, how they got there, and what they were doing improved quite a bit. As business people, we were able to make content and marketing decisions based on the data we were getting.

Things have grown quite a bit more complex over the last 20 years and that complexity has obscured much of the good, useful information. Anyone who knows analytics will tell you that much of the referral data you see (where traffic comes from) is wrong. “Direct” traffic is way overstated. “Referred” traffic is encumbered by referrer spam. A lot of so called direct traffic is really dark social traffic (I send you a link). Transfers from HTTPS to HTTP sites report as direct as well. Keyword data is “not available.”

I’m not trying to make your head hurt nor to get really wonky. The point is that if you’re relying on that data to make decisions, you’re really just guessing. It’s the same with much of your ad data. I’ve written before about the lack of transparency in the programmatic ad markets and that opaqueness obscures the validity of the data as well.

I can add search data, email data, and more to the list of what probably isn’t what you think it is, but all of this fostered a thought: what do we really know that’s truly actionable?

I can answer that. We can know how our products and services are really differentiated and how much better we are at solving peoples’ problems. We can know (yay review sites!) how good our customer service is. We can know how our revenues and costs and changing and we can ask why.

I’m the last guy to say we should ignore that large and growing amount of data every business gets each minute. But maybe the time has come to act on what we KNOW and less on what we really don’t. What do you think?

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Filed under Consulting, Helpful Hints, Huh?, Reality checks

Buy Less, Get More

I recently bought a Chromebook that has a touchscreen. I’ve been using a MacBook Air for half a dozen years as my primary computer but it has slowed to a crawl and work was taking much longer to get done. I debated replacing the Mac but then I took a hard look at what functions the laptop served. Over the last few years, nearly everything I have been doing is done in the cloud and having a device that’s basically a glorified web browser actually seemed like a good idea. I moved my accounting to a cloud-based system and started using the Google suite of office programs (Docs, Sheets, etc.) in lieu of the programs on my Mac. I’ve been a lot more productive and I got a large Android tablet out of it to boot (the Chromebook flips around to be a tablet!).

There are a few other things that I noticed. First, this device reminds me of the Mac when I first got it. The thing just works. It updates itself, it’s safe from malware, battery life is good, and it’s easy to add extensions to customize it to my liking. I can run any Android app the will run on a phone (admittedly, that’s often a so-so experience) and that opens up a ton of additional software on a bigger screen than my phone.

This isn’t a screed to get you to buy a Chromebook. The point, rather, is to get you to think about why you buy, build, hire, or otherwise add to your organization. Another Mac would have been overkill based on what I needed the device to do. I saved money (the Chromebook cost about half of what a new MacBook would have cost) and I’m more productive. We often spend our precious resources on unnecessary things and that’s bad management.

Some examples. Most of the people who buy Microsoft Word have no clue how to use most of its features. The same with Excel. They are both wonderfully powerful programs but there are so many features that they become difficult to use and simple tasks can become daunting. There are free programs out there, and there are some great alternatives to the Office suite that have 99% of what most of us will ever need. You buy less and get more.

Another one. I worked with some managers over the years who would always put new positions into their budgets. Did they need them? Nope, but since other departments were growing, they felt as if they had to grow too. A corporate form of keeping up with the Joneses, I guess. We can’t manage our businesses to impress other people or out of jealousy. We can’t spend on a Rolls Royce when all that’s called for in order to get the job done is a Volkswagen.

Buying less can often get us more. It certainly did in my case. Give it a try?

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Filed under Reality checks, Helpful Hints

Is The End Near For Sports?

I know you might be thinking that my headline is just some outrageous form of click bait and that I can’t seriously think that big time professional sports are heading down the same path as traditional big media. Let me throw a few recent articles at you and maybe you’ll come to a different conclusion (which I do hope you’ll post in the comments).

The sports business is based on a few large revenue streams. One is income from the games themselves: ticket sales, concessions, merchandise, etc. What makes many of those things possible is a nice facility – an arena or stadium. We’ve seen franchises move (and piss off their fans) over the stadium issue, sometimes even before the bonds on the last stadium built for the team are paid off. I urge you to watch the John Oliver piece on the relationship between teams and towns but here is why I suddenly think there is an issue. As reported by Mondaq:

bill has been introduced that would eliminate the availability of federal tax-exempt bonds for stadium financing… The bill would amend the Internal Revenue Code to treat bonds used to finance a “professional sports stadium” as automatically meeting the “private security or payment” test, thus rendering any such bonds taxable irrespective of the source of payment.

In other words, it will make public spending on a private facility way more difficult. That will lead to fewer new facilities and a much harder path to growing that revenue stream. Strike 1.

Then there is the largest revenue stream for most big leagues: TV. Kagen recently reported that the U.S.pay-TV industry will lose 10.8 million subscribers through 2021, according to their latest forecast. You might already know that ESPN has been losing subscribers – May 2017 estimates were 3.3% lower than the year before. For every million subs lost, ESPN takes in roughly $7.75 million less PER MONTH – or $93 million a year, and they have already lost multiple millions of subscribers. Yes, some are being replaced via the sale of OTT services, but that requires spending to sign customers, something ESPN hasn’t had to do before. The same subscriber loss issue is true of every other sports network albeit to a lesser degree since their monthly fees are less than ESPN’s. Smaller subscriber fees mean a diminished ability to pay those large rights fees. Sure, other channels (some would say suckers) will step up – Facebook, Twitter, YouTube, and others. But my guess is that the outrageous increases many entities have secured over the last few rights cycles are gone for good. Strike 2.

Finally, costs are not going to go down, at least not without major disruptions such as the two recent NHL lockouts. Players aren’t going to make less (the downside of the salary cap), team personnel probably won’t, at least not without a lot of turnover, and many of the other costs are either already low (minimum wages) or difficult to cut (food costs in the concessions, etc.).  In an effort to mitigate some of the lower revenue and growing costs, some of the entities involved in sports are beginning to do what the airlines have done and make what was once part of the deal (in-flight meals, free bag check) part of an a la carte menu to grow revenue. Specifically, look, for example, at what NBC has done with their Premier League package. They are doing away in part with their NBC Sports Live streaming coverage in favor of a new premium streaming service called “Premier League Pass” that will be in addition to the matches that are already broadcast on live TV. The stand-alone streaming service will cost $50 in addition to whatever you’re paying for your cable subscription. That will bring in more dough but it will also anger fans. Strike 3?

Don’t misunderstand me. I think interest in sports generally has never been higher, and I think any sports entity that doesn’t rely on a big TV contract and employs athletes as independent contractors (I’m looking at you, LPGA) will be in good shape. I just think there is a major disruption coming in the next few years as we’ve seen in the TV and music businesses. Watch out as the next cycle of TV deals begins and if this bill is passed. It’s going to be a bumpy ride, don’t you think?

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Filed under Thinking Aloud, sports business

Independence Day Once More

I’m going to be a little lazy today since I have a sneaky feeling that many of you are off having fun for the extended holiday weekend. My laziness is taking the form of reposting this piece from July of 2008. As I reread it, It struck me that it’s even more appropriate now than it was 9 years ago (have I really been at this for that long??). No, it’s not an election year, but the rest of it struck a chord with me. You?

It’s going on July 4th and to all of us raised on the Red, White, and Blue we know it’s a day (OK, a long weekend) during which we can celebrate the fundamental principles that make the US of A what it is.  No, I’m not going to venture into politics (although it IS an election year and there’s a LOT to talk about).  What I do want to write about is the contradiction of the “independence day” term.

The Constitution (I know – a bit after the Declaration) begins with the word “we.”  We The People.  Not “me.”  The independence rightly celebrated this weekend is, to me, about the specific rights and freedoms we have to be ourselves as a people, with all the quirks that make us unique.  WE are independent of other folks (Great Britain, specifically, long ago) but NOT from one another.  I’ve spent the last 30+ years learning how critical having a strong bunch of folks around you is as well as setting the bar high in terms of with whom you do business as best you can.  Why?  Because the better they are, the better you become.  As I’ve transitioned from corporate life to consulting, the friends and business friends I’ve made over the last 30 years have been an unbelievable support network, even for a guy who is now independent.

Jack Ingram puts it well in his song “We’re All In This Together“:

We all think we’re special
And I hate to have to say
There’s a bunch of us on every corner
Of any town U.S.A.
We all got our problems
We all pay our dues
So if you’re thinking no one understands
I’ve got news for you

Chorus

We’re all in this together
Whether we like it or not
So we might as well have a good time
With the little piece of time we got
Life’s too short to fuss and fight
So we might as well be friends
‘Cause we’re all in this together
Together till the bitter end

So Happy July 4th.  Enjoy being independent.  Together.

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Filed under Reality checks, Thinking Aloud