Tag Archives: Strategic management

Business Jams

Grateful Dead: Backstage Pass

 (Photo credit: Wikipedia)

I was driving around this weekend listening, as I often do, to The Grateful Dead. Like them or not, you probably are aware that they were the world’s preeminent jam band, even if jamming as a concept that is as old as music itself. What’s interesting about jamming is that the music is never the same. Oh sure – ideas get recycled from one night to the next, but the entirety of the piece of always pretty different no matter if we’re listening to The Dead or to some great jazz.

What’s interesting is that some bands will cement the better ideas into songs. That is how some bands write. They just start playing until some good ideas surface. Those ideas are memorialized, lyrics added, and voila – a song. It’s not a bad business concept either.

When musicians get together to jam, they come from a place of openness and collaboration. They are there to experiment. While some jams start with the framework of an existing song or just a blues jam in G, most of the time you’re off following musical ideas thrown out there by the other musicians. You’re guessing about what will work at some points. To do that well, you need to keep an open mind.

Brainstorming is business jamming. You need an open mind and a willingness to go where the music (thinking) leads. Sometimes you happen upon a great riff – a fantastic business thought – that can be preserved and turned into a song – a product, or maybe an entire business.  You might think that some brilliant new innovation was the result of careful planning.  The execution probably was, but I’m willing to bet that the underlying idea came out of some mental jamming by a person or a group of people.

When I used to play music seriously, jams were fun.  They involved getting the right people together – people who have both the technical and mental abilities required as well as whose musical styles meshed well with the others in the room.  I can’t think of a better way to lay the foundation of a successful enterprise, can you?

Leave a comment

Filed under Music, Thinking Aloud

The Problem, Not The Product

You’ve probably invested a lot of time in developing your business’ product or service. You might have spent a lot of money researching things such as packaging, color, price, and the best marketing tactics. After all, back in the day before digital, consumers usually had to get in the car and drive to a competitor if they were unhappy with your offer. At a minimum, they had to pick up the phonebook and let their fingers do the walking. So not true today, where your biggest competitor is just a click away. Is all of that investment in product or service design and marketing worth it?

Maybe not. Marketing today is about one thing: explaining to potential customers how you are solving their problem. That means you need, first and foremost, to understand what that problem is. In other words, it means listening. Once you’ve done that, it means speaking to the consumer in words that mean something to them, and not in jargon. Explain your approach to solving their problem. That can reflect your brand persona, whatever you’ve chosen it to be.

You’ll notice none of what I’ve said so far requires the gathering of any personal information about your customer. In my mind, that’s asking them to marry you on the first date. Once they’ve bought in, demonstrating to them why they should share their personal information with you (and how you will guard it with your life) can only make the marketing better. After all, a customized solution to their problems is better than the generic one you already have.

The point today is that developing a pretty product or an appealing service is fine but it’s step 3.  First comes identifying the problem and then the customers who have that issue.  It’s the problem, not the product. How you solve it – and  how you present the solution – is the game from that point forward.  Have you done that? Does this make sense?

Leave a comment

Filed under Consulting, Helpful Hints

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?