Tag Archives: Reality checks

September 15, 2015 · 12:15 pm

Undefeated But Beaten

Over the weekend, Floyd Mayweather fought what he claimed would be his last fight. Whether or not you know boxing, there is something instructive in what Mayweather has done. Unfortunately, it’s not about being great. Mayweather is retiring with an unblemished record in the ring: 49-0. This ties Rocky Marciano‘s unbeaten record, but there is a huge difference between the two. That difference makes a great business point as well.

English: Floyd Mayweather, Jr. vs. Juan Manuel...

(Photo credit: Wikipedia)

For the last few years, Mayweather was fighting what are called in boxing “tomato cans.”  Boxers either of far lesser skill or once great boxers past their prime.  He has done so with one notion in mind: not to lose and keep his record clean.  In so doing he can do something greats such as Muhammad Ali and Sugar Ray Leonard couldn’t: retire unbeaten.  That record, though, is criticized for how he hand-picked his opponents rather than fighting the best opponents available, something other great fighters rarely did.  He was more focused on not losing than on beating the best. It’s a shame, and that’s the business point.

No one likes to lose.  That said, what kind of victory is it when we know we’re not being pushed to be our best?  In my mind, the lessons one learns from a tough loss are more important than those learned from an easy victory, mostly because in the unsatisfying walkover there really aren’t any lessons to be learned.  That’s not to say we need to accept losing, but it does mean that we can’t compromise our greatness to avoid the possibility.  The best business lessons often come when we’re on the short end of a decision, and we need to embrace the value of those losses even as we hate losing itself.

I suspect that Mayweather will fight again.  His main focus has always been on making more money in the ring than any fighter in history (something he’s already accomplished) and he’ll win the fight easily because his opponent will be a joke (this last one lost his last three fights previous to fighting Mayweather).  His bank account will shine; his reputation will be further tarnished.  Unlike Marciano who fought everyone both good and bad in his weight class, Mayweather may be undefeated but he’s been beaten, in my book.  Yours?

Leave a comment

Filed under Reality checks, Thinking Aloud

Tagged as , , , , , , ,

August 24, 2015 · 11:53 am

Speed Kills

I was reading a sports business newsletter this morning and I came across a quote that prompted a business thought. The speaker – a host on ESPN – was reflecting on the demands placed on journalists these days. What she had to say about the need to be fast was this:

The whole Wells Report is like 400 pages. I don’t have time to read 400 pages, but I have to go on the air to say something about these 400 pages. I may have read a good third of it. That’s where we are right now. The whole need to produce an opinion has overshadowed the need to produce reporting. When I was growing up, people were watching the news and expecting unfiltered, objective news. Now, if it isn’t about clicks, it is about drawing attention to yourself and making your opinion stand out and that is difficult.

The Wells report, for those of you not following the story, was an independent review of the deflating of footballs by the New England Patriots during a playoff game last season. I think what she had to say applies to any of us in business and it’s instructive.

We get so much information on a continual basis. Inevitably, some higher up asks about what’s going on and there is a rush to judgement. Many of us feel the need to produce an opinion even though we don’t feel as if we’ve had the time to adequately analyze and reflect on the information we’re getting. That’s dangerous and, in my book, often counterproductive.

We all have opinions – just check your Facebook feed and you’ll see dozens.  I think we all like to believe that we base them on facts, but that same feed will show us that many times that’s just not so.  When that request for information is made, the person asking is generally not seeking your opinion.  They want a cogent analysis of factual material.  The problem is that we’ve all become accustomed to getting the answers fast.  After all, in a world where much of the learning of humankind is at your fingertips and is just a search query away, our sense of patience has all but disappeared.  The quote’s reference to “unfiltered, objective news” applies to the expectations we have in business.  Unfortunately, so too does the emphasis on speed and the need to place yourself front and center.

Like you, I get asked for quick answers.  I’ll often give one along with a disclaimer that it’s an informed opinion but not necessarily reflective of all of the facts and request the opportunity to come back with a more informed answer.  If I know the person asking is going to take immediate action on my answer, I might even ask for a brief delay before I respond so I can gather up some more objective information.  How do you handle it?

Leave a comment

Filed under Reality checks, Thinking Aloud

Tagged as , , , ,

August 6, 2015 · 11:32 am

No News Isn’t Good News

I’ll let you in on a little secret.  Here at the World Headquarters, we step away from the computer screen at lunch time, usually to watch the big screen.  Generally it’s a whip around through the various news channels to make sure that it’s worth continuing to work the rest of the day.  After all, if the world is going to end, I’d rather try to sneak in one last round of golf than write a few more emails.

One thing I’ve noticed lately as I watch CNN/MSNBC/FoxNews during lunch is how little actual content I see.  Mostly I see ads.  After many years in the TV business I understand why, but when you factor in national breaks, promotional spots, and the local cable affiliate breaks, a viewer can leave the set for 5+ minutes at a time and not miss a thing.  Entertainment programming doesn’t seem much better. Then again, maybe I’m just old and cranky and wrong.

It turns out I’m not.  As Business Insider reported:

Almost every major TV network in the US is stuffing more ads into their commercial breaks in a “desperate” attempt to prop up ad revenues as ratings across the industry decline, according to a report from investment research and management company Sanford C. Bernstein. The report shows that prime-time TV audiences (as determined by Nielsen C3 measurements: TV watched both live and three days after the show was first aired on catch-up services) are down 9% year on year, yet ad loads on some networks are up as much as 10% on last year.

The chart I’ve embedded shows how commercial hours have changed in the last year across major cable network groups.  3% or 4% may not sound like a lot, but when you’re running over 10,000 seconds of commercials a day, that’s several minutes more each day.  Times 7.  Times 365.  The problem with that is that in the process of maintaining revenues you’re exacerbating the problem of viewer abandonment.  In particular, viewers are going to streaming, where commercials loads are way smaller if they exist at all.  What I find nice about the commercials on Hulu, for example, is that you know exactly how long they will last.  I have no clue as I’m taking my short lunch break if I’m ever going back to the news.  In this case, no news is very bad news since it means yet more of what I definitely did not tune in to see.

We can’t alter our products to preserve an income statement when that alteration provides a lesser experience for the consumer.  It’s a short-term fix that will have very bad long-term ramifications.  Cheaper ingredients, lesser workmanship, or ad cramming are all part of the same mindset.  It’s one we should avoid, don’t you think?

 

Leave a comment

Filed under Helpful Hints, Huh?

Tagged as , , , , , ,