Tag Archives: Strategic management

May 6, 2013 · 9:28 am

Stupid Is As…

I read something a few days ago that has stuck with me. I was going to write about it at the time but I couldn’t really figure out how not to make it a political issue because as you know we don’t do politics here on the screed. Over the weekend as I was thinking about it some more, I realized why I can’t get it out of my head.

In a word: Stupidity.

But there’s a business point in here too. Here is one article  from USAToday about what’s been going on in the state of Virginia. In a nutshell, as the article reports,

Virginia passed… a new law last month that lowers the gas tax for everyone, but slaps a $64-per-year fee on hybrid and electric car owners to help make up for what those drivers aren’t paying at the pump….Legislation that would levy a fee or tax on greener wheels is now pending in Texas, Massachusetts, New Jersey and Arizona.

Pure genius at work here. Encourage people to buy fuel-efficient vehicles to curtail gasoline consumption (as well as to help the environment) but penalize them because they’re not paying enough gasoline tax.  We could spend a lot of time here on the politics but let’s discuss the optics instead.  This seems stupid.  Is that a shallow, uniformed take on the matter?  Maybe, but I think it’s dumb, and that’s all that matters.  In fact, everyone to whom I’ve mentioned it concurs and many of them are not at all shallow people.  In fact, they’re almost universally well-informed and can take a broader view of issues than their own opinions.  Which is the business point.

From time to time we all need to take a step back and get to the place where our customers and potential customers are.  They don’t have all the facts you do nor do they share the same perspective as you.  Even if they do, they just might not care.  You need to be in that “outside” place and ask yourself if what you’re doing – a price change, a package modification, a marketing campaign, whatever – seems stupid.  For example, cutting a 12 ounce package to 11 ounces with a label that says “great new package, same great price” is stupid.

Maybe there’s a good reason to encourage a behavior and then to penalize it but I can’t figure it out.  There’s no good reason to ignore the optics of something as a businessperson.  If it appears stupid, it probably is.  You agree?

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May 2, 2013 · 11:00 am

What The School Dance Shows Us About Marketing

Remember what it was like when you were a lot younger (ok, so not THAT much for some of you) and you’d head to a dance at school? There are the kids who would dance with anyone and everyone. There were the wall flowers who hid along the sides. Then there were whose who really wanted to dance in the worst way (well, not DANCE badly, but wanted desperately to participate!) but didn’t really know what to do. You could almost smell the desperation. They didn’t really have the skills to engage with the kids with whom they wanted to dance but they very much were sending out the signals that they wanted to.

High school dance, 1941. Worthington (Ohio) Hi...

(Photo credit: Wikipedia)

I was reminded of that as I read about how many marketers are planning to spend a lot more money on “social media advertising.”  Frankly, I consider that an oxymoron.  Social media, to me, is about engagement and conversation and not about using a megaphone to talk about yourself.  Nielsen put out the research a couple of months ago and it found that a majority of advertisers surveyed said they are going to increase their paid social media advertising budgets for 2013. In some cases they’re cutting back on display ads and it’s always a good idea to spread the ad investment across channels.  However, I’m a believer in using the resources to support social media efforts and not to buy ads on social platforms if a brand has to make a choice.

There was an AdAge study that showed the use of Facebook Ads is to drive brand awareness more than anything else.  That’s the equivalent of hanging by the gym wall – people can see you but there’s not much going on in terms of making engagement happen.  It isn’t until we lose our fear and go talk with someone (preferably about THEM!) that the invitation to dance can happen.  When people sense that desperation it makes them think they’re the lowest common denominator when an attempt at engagement occurs, whether it’s a dance or an ad campaign.

Nielsen said this: “Advertisers are doubtful or unconvinced about the effectiveness of paid social media advertising, indicating that the growth of the medium is being somewhat hampered by a lack of relevant, universally employed metrics.”  I don’t think that’s the entire story.  I think that doubt is spurred in part because it’s a square peg (ads) in a round hole (a social setting).  It’s the desperate kid standing by the gym wall shouting irrelevant nonsense.  As marketers we need to engage in that setting if we’re desperate to dance.  Chat someone up – see if there’s compatibility.  Maybe even dance a bit.  Who knows where it can lead.  Standing by the wall yelling “I really want to dance with someone!” isn’t going to work.  At least it never did when I was at those dances many years ago.  How about you?

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April 12, 2013 · 11:37 am

What Grills Teach Us About Scaling

A rainy Friday but we’ll still have our Foodie Friday Fun as if the sun was shining and we’re firing up the grill outside.

Beef and Corn on a Charcoal BBQ grill

(Photo credit: Wikipedia)

It is getting to be that time, of course, and with it comes one of the big differences between a professional kitchen and most amateur kitchens:  the ability to scale.  Cooking for a family of four is vastly different from making the exact same meal for 24.  In the case of the aforementioned grill, grilling burgers, dogs, and chicken for four is relatively easy; doing so for 24 requires excellent timing, a much bigger grill, and a way to keep food hot while the rest of it cooks.  That’s why I have a firm rule against “piece work” when cooking for a lot of people – I always use big cuts – racks of ribs, briskets, whole chickens – and cut them into serving pieces.  It makes scaling the operation a lot easier.

Many business folks don’t think about scaling.  They develop a product or service or management style that works when things are small but which can’t handle a much larger set of challenges.  Managing a staff of three can be easy – communication should be efficient, there are only a few egos and skill sets to align.  When three becomes 30, look out, especially if your management style is one of detachment or tolerance rather than engagement.  Obviously there are technical challenges in many businesses as well – servers can only handle so much traffic, sloppy code can’t process quickly enough to handle demand are some examples in tech.  Customer service lines can be full, inventory management can be a nightmare – some non-tech issues.  Those are things that must be contemplated very early on with an eye towards the stress brought on by success (not a bad problem to have, right?)

How the business will grow and how to support that growth is probably not on enough radars.  Do we get bigger through new products?  Do we add areas of focus?  Do we get enough funding to make acquisitions?  Strange as it may seem, planning a cookout can help think it through.  If you’re running out of food or serving it cold, guest walk away hungry or maybe sick.  Scaling to serve your guests (customers) isn’t something that just happens – it requires thought and planning.  So does business!

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