Tag Archives: Strategic management

How’s That Going?

Sometimes when I meet people and they describe their work lives to me, I’ll listen as they tell me what they’re doing and then follow up with a simple question: “how’s that going for you?” You’ve probably done something similar, and I bet that you rarely get “I don’t know” for an answer. I certainly don’t, and it concerns me when I do since how can you not have some feeling about so important a topic that occupies much of your waking day? 

What made me think of that was a report put out by the folks at Rundown. It took a look at how companies feel about their content creation process and the subsequent content marketing. It’s instructive to any business regardless if you’re doing content marketing or not. You can look at a summary of the report here.

Almost 80% of the surveyed content marketers agree or strongly agree that their team “makes awesome content that our audience loves.” That’s great, except for that pesky follow-up question – “how is it going?” You see, 52% of these same people disagreed that ” My team has a clear understanding of what works and why.” 55% disagreed that they knew how much each type of content costs to produce, and an astonishing 82% disagreed that they have a good understanding of the ROI on the content creation and marketing investment.

I’m not going to pontificate about in which activities a business should or should not engage.  I will say, however, that no matter which ones they are, it’s imperative that there is a handle on costs as well as some measure of ROI.  I am cringing as I think about answering any of the people for whom I worked with “I don’t know” when asked about what something cost or how it was impacting our goals (revenue, engagement, whatever).  Resources are precious.  So are measurable, actionable data about the results of activities we undertake using those resources.  Saying you make “awesome content” (or anything else) doesn’t resonate with me unless part of “awesome” is moving the business forward.  You?

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Filed under Consulting, digital media, Huh?

Business Suicide

A clear indication of when it might be time to rethink how you’re running your business is when your own interests overtake those of your customers. I’m pretty sure that while that sort of prioritization makes for short-term gains it’s a losing strategy in the long term. What’s prompted that is a piece I read this morning about programmatic media buying. You can read the piece here and it’s pretty sobering. That said, I suspect many executives could tell similar stories in their fields. 

The piece starts this way:

Programmatic is supposed to bring efficiency to ad buying. But in reality, it’s becoming murky and less reliable for many brands. Most of the time, brands end up paying their agency double and even triple when they collaborate on programmatic.

In other words, what is supposed to be a winning solution for both client and agency turns out to be anything but. I’m very sure that there will be collateral damage on publishers as well. This is what happens when business interests are misaligned. We see this sort of thing all the time. What caused the home mortgage crisis? Lenders putting their profits ahead of the customers to whom they issued loans they knew would be in jeopardy from day one. Why do some drug companies levy outrageous price increases? Shareholder interests before patients’.

One thing of which I remind clients is that as a consultant I have no interests other than theirs. Maybe that’s a lie of sorts since in truth my interest is in making their current customers as happy as possible while expanding that customer base. I think that’s the only way forward to sustained profitability, and it only happens when the business’ interests are perfectly aligned with the customer’s. Anything else is akin to committing business suicide. Do you agree?

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Filed under Consulting, Huh?

Off The Fairway

I read a sad article this past week and it’s the topic for our Foodie Friday Fun today.  Fairway is one of my favorite markets.  In addition to having a huge selection of groceries and produce, both organic and non-organic, the prices for most things are reasonable.  The store began as a fruit and vegetable stand in the early 1930’s and has grown into a chain of fifteen stores spread across the New York Tri-State area.  That expansion, however, didn’t begin until the mid-1990’s, and really only took off after the chain was purchased by some private equity folks.

Fairway Market

 (Photo credit: Wikipedia)

According to the article I read from Grub Street, the chain is in dire straits.  It has a huge amount of debt and, as the article says:

Almost everyone agrees that a confluence of issues — including an overly aggressive and poorly executed expansion plan and rising competition in the quality-produce business — are the reasons Fairway is now in crisis. “It was a perfect storm,” says a former executive for the company.

Those are lessons for any business.  First, the systems that support one or two stores were inadequate to support many more.  The chain is having issues managing its inventory, and as any retail business knows, inventory management can make or break the operation.  The Point Of Sale system was antiquated, further compounding the inventory problem (how can you manage supply when you don’t have an accurate picture with respect to what’s selling?).  Most importantly, the market changed.

One of Fairway’s primary appeals was the availability of unique ingredients and products.  They have extensive meat and fish departments that often provide hard to find cuts at good prices.  The problem is that others are now doing the same and Fairway rested on their laurels rather than pushing to stay ahead of the pack.  All of those issues might be found in any business that allows success and rapid expansion to disrupt the processes and execution that brought that success in the first place.

It’s easy to think that it can’t happen to your business, and it won’t as long as you continue to attract talented, knowledgeable staff (Fairway couldn’t find enough to keep up with expansion), pay attention to your systems, execute well, and listen to the market (and your customers).  Easy to say, I know, but that’s why they call it work!

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Filed under Helpful Hints, Huh?