Did Anyone Get the Memo on How to Act During a Slowdown?

June 11, 2008 By Leave a Comment

You don't have to look hard to learn about the impact of rising fuel costs, including layoffs, plant closings, cutbacks, service reductions, fare hikes and new user fees.  These headlines and many more just like them blare from the tv and radio or jump out at us from the front pages of our morning newspapers.  However, what really amazes me is how hard you have to work to find examples of companies and leaders that received and read the memo on surviving, improving and even prospering during periods of economic difficulty.

I wrote about this topic a number of months ago (How Good Leaders Approach a Recession) suggesting that the best leaders take advantage of business cycle slowdowns to improve their organizations and set the stage for growth as conditions improve.  While I don't recall for certain, I suspect that I might have even suggested that it is possible for truly enlightened organizations to take advantage of the situation by flogging their competitors who are acting as if a slowdown means going out of business.  If I didn't mention it previously, consider it said: You can grow and advance during a recession.

The Airline Industry: How Not to Act:

The airline industry is generating a fair amount (bad pun intended) of the air time (another bad pun, sorry!) on bad news.  Rapidly rising fuel costs are further devastating the already not-for-profit U.S. airline industry, driving the companies to cut flights, cut employees, cut planes, reduce services, hike fares, add all sorts of new user fees in an attempt to survive.  While I never begrudge anyone the right steps to deal with costs, it seems that the net impact of most of the actions is to take one of the most miserable experiences that a human can go through (next to prison) and make it worse.  In the words of one of my favorite people on the planet…"We have a plan, it's not going to work, but we're going to do it anyway."

Hey airline industry, what about taking some steps to try and do something radical like offer something that encourages people to fly.  You've proven that punishing us with horrible service, uncomfortable equipment and extra fees for luxuries like checked baggage or rescheduling our flights don't work.  Why not Tune In to your buyers and offer us opportunities and experiences that surprise and delight?  Imagine,  trying to lure customers with something positive.  Radical.

Rumor has it one of the major carriers is working on rolling out a host of incentives that focus on providing consumers with good reasons to happily fill their planes.  Southwest figured this formula out a long time ago, and in my opinion, their current commercials mocking the fees of the other airlines by showing passengers inserting quarters for things like reclining a seat, accessing the restroom or opening the overhead luggage compartment, are brilliant.   Just like Apple has single-handedly rebranded Microsoft as a clumsy, lumbering, out-of-touch company with the "I'm a Mac" commercials, Southwest is showcasing how asinine the rest of the industry is acting.

Bottom Line: Other Thoughts on Prospering During a Slowdown in Any Industry

I didn't mean to make this a rant on the airline industry, but with 1 million air miles, most on United, I've earned the right to vent just a little.  Some other thoughts for leaders, managers and concerned corporate citizens everywhere:

  • Thump your competitors if they'll let you. If your competitors are responding to a slowdown by acting like they are preparing to shrink, launch a frontal assault and seek to grab customers while the grabbing is good.
  • Give us reasons to buy, not avoid your product or service. Offer positive encouragement. If you own airplanes you want butts in seats and if you make cars, you want the same.  Help us solve our problems and offer us some good reasons to take that vacation or consider you when we need a new car.
  • Be positive.  Manage the flow of noise from your organization to ensure that it is weighted in the right direction.
  • Create experiences for your customers that "surprise and delight." 
  • Monitor what's happening in places where your customers come to buy.  (Home Depot, you lost my lawn tractor purchase last week, because no one in your store would take the time to talk to someone clearly ready to buy.)
  • Topgrade your team.  The right people make you great.  The wrong people have you punishing your customers and sewing the seeds of your own demise. 
  • Plan and act to prepare for improving conditions.  Prune your project portfolio to those that are most strategic and support them to the hilt!

My next assignment is to seek out examples of companies actually doing some of these things.  If you've got some examples, let us know.  I have to stop typing  now, I've finally reached the ticket counter and I need to pull out my credit card to pay for: the baggage fee, my flight change and my fuel surcharge.  Uh oh, the ticket agent looks angry. And oh yeah, I need a few singles for the bag of peanuts on the flight. 

 

Filed Under: Leadership Tagged With: , , , , , , , , , , , , , ,

Tuning In to Leadership (and much more) With A Great New Book

June 9, 2008 By 3 Comments

One of the highlights of the past few months has been the opportunity to gain some early insight into the forthcoming new book, Tuned In, by Phil Myers, Craig Stull and David Meerman Scott. 

I'm excited about this book on a number of levels.  In a pre-release article about the book, Phil, Craig and David make a promise to readers that they will show us an approach to finding "overlooked marketplace problems that, if solved, bring in customers who willingly buy your products and services without being coerced." 

From my discussions with Phil and from reading the article and advance materials, I am confident that this promise will be more than kept, offering some much needed guidance for executives and marketers looking to create offerings that resonate with buyers.  After 22 years leading high tech marketing teams, I couldn't help but ask myself, "Where was this book was all those years when I needed it?"  Well, it's here now, or at least almost here, and marketers everywhere will be well served to read and apply the well-researched and well-developed ideas and approaches in this fascinating and practical new book.

Tuned In presents a six-step process for creating a resonator: "a product or service that so perfectly solves problems for buyers that it sells itself."  The examples, approaches and ideas for realizing resonators and for supporting the creation of an organizational culture that institutionalizes the requisite thinking and processes are the heart of the work. The steps: find unresolved problems, understand buyer personas, quantify the impact, create breakthrough experiences, articulate powerful ideas and establish authentic connections offer powerful and practical guidance for marketers and executives everywhere. 

Valuable Guidance for Leaders in Tuned In:

We all read and relate to ideas through the filters of our own experiences, and as I've immersed myself in writing, speaking, training and teaching on all things leadership during the past few years, I've started to view the world through the eyes of how great leaders at all levels transform organizations. The Tuned In tagline reads: "Uncover the extraordinary opportunities that lead to business breakthroughs," The breakthrough for me personally from this book is the perhaps unintended but powerful framework that emerges for creating and sustaining the leadership culture necessary to realize a Tuned In organization.

During the research for my book, Practical Lessons in Leadership, my co-author, Rich Petro, and I came away from hundreds of hours of interviews with the perspective that most leaders do not operate with a holistic view of what leadership is supposed to deliver to an organization.  Tuned In helps solve that problem by offering clear context for the role and priorities of leaders at all levels as they pursue creating breakthrough experiences for their customers.

The Top Priorities of a Tuned In Leader:

  • Creating the environment (atmosphere) necessary for individuals and teams to be comfortable and confident to take the risks and pursue the actions needed to identify and realize offerings that resonate.
  • Bringing together individuals and teams with the talents, skills attitudes and sense of adventure needed to succeed as a business that is constantly searching for unresolved problems and applying the discipline needed to turn those into resonators.
  • Ensuring that expectations and performance are defined, communicated and measured against customer and market standards, not just internal or competitor standards.   Inherent in this activity is establishing a new way of measuring performance that aligns with the Tuned In Process. 
  • Developing his or her leadership credibility by ensuring that words and actions match and ensuring that associates receive the mentoring, feedback and developmental opportunities needed to grow and to pursue new and greater tasks.
  • Constantly searching for, identifying and supporting the development of formal and informal leaders.
  • Fostering an environment that encourages action-focused debate at all levels, across all functions up and down the leadership chain.

Armed with these priorities, Tuned In leaders, from the CEO to the front-line managers have a clear view of how they should invest their time and focus their energy.  These items define the job descriptions of leaders at all levels and help guide the development of To-Do lists across the organization. There is no wiggle room for misalignment on these activities as an organization seeks to create offerings that resonate and surprise and delight buyers with great experiences. 

The Bottom Line for Now:

Phil, Craig and David in Tuned In offer a pragmatic and effective approach for creating and sustaining success, regardless of the size or style of organization. Building on their framework, a Tuned In approach to leadership will help institutionalize the approaches and practices that they advocate.

You can and should read the book for the practical and actionable framework on creating value, but the richest veins of gold here for me are the ideas that the authors prompt for reshaping and invigorating our leadership habits.

–
Join me for a webinar on Tuned In Leadership this Friday, June 13th at 10:00 a.m. to 11:00 a.m. PDT

Filed Under: Leadership Tagged With: , , , , , , , , ,

Preventing Product Launch Failure: Watch Out for the Pitfalls!

June 8, 2008 By Leave a Comment

G. Michael Maddock and Raphael Viton writing in the Innovation Engine column at  BusinessWeek online, offer a sobering look at the Ten Reasons Your Next Launch Will Fail.   From the propensity of companies to create solutions for unknown problems (Science Run Amok) to the recurring theme of teams convincing themselves that they can't miss (Death by Consensus), this insightful and witty column offers some priceless guidance for marketers, product and project managers and executives everywhere. 

Having been on the winning side of some great launches and the losing side of a few spectacular failures in the B2B tech world, I can relate to the problems that Michael and Raphael describe all too well.  Some thoughts based on my own experience:

  • The Swiss Army Knife or Requirements Run Amok Product: This one finds erstwhile Product Managers (usually unseasoned) working hard to pack every possible feature into an offering in the naive believe that this Swiss Army Knife approach will create a stronger offering.  They did not understand their buyer's problems/challenges sufficiently, and they over-specified to compensate.
  • The Offering Just Slightly Ahead of Its Time:  Yep, I made this mistake.  As Maxwell Smart would say, "Missed it by that much."  Followed by, "Sorry about that Chief."  By now, drinks were supposed to be poured by a Drink Tower robot in Quick Service Restaurants everywhere, saving a veritable fortune in labor and improving time efficiency.  My Drink Tower interface from the Point-Of-Sale system burned a lot of time and money.  It was really cool in the one site that actually tested a drink tower in 1996.  I hear that there are a few more sites now.
  • The "We'll Release No Product Before It's Time, Except This One" Launch: This launch failure usually involves a management team that built their budget around a new product launch, only to see schedule delays cut into their nicely developed sales dream.  Pressured by the urgency of the situation and the upcoming Board meeting, a watered-down version of the product is launched and you can guess what ensues. 
  • The Product that Won't Be Born: OK, maybe this is a cheap shot, but it's my column, and I get to offer at least one gripe to a development team or two that couldn't get its act together.  It's not always the Product Manager's fault!

The bottom-line for now:

Like the forward pass in football, there are a lot of things that can go wrong and only one thing that can go right: the pass is caught and the product launch is successful.   Successfully launching products requires the organization to be Tuned In to their buyers.  Solving a vexing problem in a unique way for a distinct group is a great starting point.  Creating the culture, systems and approaches requisite for a successful launch requires committed, focused leadership at all levels of the organization.  Establishing a high level of competence in product launch is table stakes for success in a world where opportunities are fleeting and  and product life cycles shrinking daily. 

Hmmm, now, if 5,000 locations save .2 people due to the automatic drink tower, the savings will be worth millions.  I wonder if it's time to re-launch that puppy?  I suspect that Michael and Raphael would advise against it.

Filed Under: Leadership, Marketing, Product Management, Project Management Tagged With: , , , , , , , , , , , , , , , ,

Sirius and XM: Does Satellite Radio Resonate?

June 6, 2008 By Leave a Comment

With thanks to the team of Phil Myers, Craig Stull (Pragmatic Marketing) and David Meerman Scott (Web Ink Now), I'm looking for "Resonators" everywhere I go.  And no, "Resonators" are not some new cool gadget, but rather, as defined by the aforementioned authors in their soon to be released book, Tuned In, they are products or services that so perfectly solve problems for buyers that they practically sell themselves. (Full disclosure,  I've had a sneak peek at some of the concepts in this great new book, and I am presenting my take on what their book means for leaders in a webinar, entitled: Tuned In Leadership, next Friday, June 13.)

An article in the Wall Street Journal last week entitled "Slowdown Generates Static for XM, Sirius," outlined the challenges that these two (planning to be one) satellite radio companies are having in generating the much needed growth in subscriptions, given a slowing economy and especially, slowing automobile production and purchases (a key source of new subscriptions for both).  Now that the companies appear to be moving towards gaining the final OK to merge, they are running into their next hurdle, trying to solve the riddle of profitability by delivering premium content and commercial free music to customers willing to pay.  Both organizations have purportedly invested heavily in adding celebrities (e.g. Howard Stern) and major sporting events (NFL, MLB, NASCAR etc.) in an attempt to lure enough subscribers and advertisers and eventually generate profits.

According to the article in the Wall Street Journal, the combined subscriber count for both companies is in the neighborhood of 17.9 million…adding a net total of 3.7 million last year.  The article contrasts this with 21 million Ipods sold last year and the fact that 54 million people tune in to internet radio every week.  Of course, many more people tune into traditional terrestrial radio—in spite of the mundane and redundant programming and the mindless and endless commercials (this author's opinion).

I have been a subscriber to satellite radio almost since its inception…first XM and now Sirius.  I have a subscription in my car, and I have a portable unit that I use in other cars, on my boat or in a boom box when I'm working in the yard.  I drive a fair amount, and I love the constant access to CNBC, other news channels and some great talk shows.  I also appreciate the opportunity to tune in to commercial free jazz content on the ride home after a day training, teaching or working with a client.   I am almost as passionate about my satellite radio as I am about my family's growing number of Apple computers and related products, but I worry a lot about the survival chances for this incredible medium.

I reviewed the afore-mentioned article in a management class of working professionals last week, and the discussion and key points might be germane to the teams at XM/Sirius.  In this northwest suburban Chicago class of 15, I was the only subscriber, and while several had heard the names of the companies, there was little perception of  what satellite radio is all about.  Overall, the class struggled to describe why anyone would pay for radio, although most agreed that the commercial free aspect was nice.  After discussing the features and benefits (and pricing model), a few offered that they might pay for Howard Stern or some sports, but overall didn't find the concept of satellite radio solving any real problem or didn't find it exciting and unique enough to place it into the "must have" category.  Truthfully, I even let some of my passion for the offering filter through and in spite of this, the reaction to the concept of paying for radio (even premium and commercial free radio) was that it is not doing anything to solve a problem that anyone could identify, although it sounded like a nice luxury.   Clearly, satellite radio was not a Resonator with this audience.

The bottom-line for now:

As stated, I'm a big fan.  I would be sad to lose my Sirius radio.  (It's playing in my office right now as I'm typing this.)  However, I've long suspected that this medium has bigger problems than the scrutiny they are receiving over the prospect of merging.  The companies (in my opinion) have failed to do what other companies and products like Apple and the Ipod do so well…to create something that is so compelling, that solves such vexing problems or creates such an incredible experience, that large number of buyers cannot live without it.  Sirius's new Stiletto 2 combines the best of a portable, Ipod-like device with the ability to play MP3 files, but still total subscriber numbers remain low.

If I'm XM/Sirius, I would be losing more sleep over why people aren't knocking down the proverbial doors to take advantage of their quality offerings.  I hope they make it, but if my class is representative of a large part of the potential subscriber base, satellite radio either doesn't resonate, or the companies have failed to communicate the value in a way that resonates.  I hope that the management teams are Tuning In.

Filed Under: Marketing, Strategy Tagged With: , , , , , , , , , , ,

The Raw Marketing Power of Passionate People in the Workplace

April 29, 2008 By 1 Comment

For those of you drawn to this post in the hope of finding something juicy about workplace romance, keep on clicking.  This is about romance of the professional type.  It’s about the powerful impact that someone with passion for his or her job has on the working environment and ultimately on the success of the enterprise.

A passionate employee is like rocket fuel for your organization.  These rare and valuable people build your brand, strengthen client loyalty, stimulate repeat business and energize your workplace just by their daily participation in your business. 

[Read more...]

Filed Under: Leadership, Marketing Tagged With: , , , , , , , , , , , , , , ,
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