Archive for 2010

Go Ahead, Be a Grinch

Wednesday, December 22, 2010 by:David Zahn
Comment
Comments
|
|

As you sit around the holiday fireplace this year and feign being happy with the gifts you will never use, pretend not to mind the cost of the dinner on the table, or act interested in hearing the same stories over and over from the forgetful relative, you may get the vague feeling that you are impersonating the Grinch.  Afterall, tis the season to be jolly, right? Or not. At this time of the year, people are expected to be merry and dismiss any negativity.  If you must, go ahead and join in the frivolity.  But come Monday, when you go back to work, give yourself permission to be a Grinch as you look at what you want to accomplish in the New Year or consider making resolutions about what you plan to change in 2011. Negative thinking is not necessarily “bad.”

In business, being a Grinch is not always a bad thing

Business Perspective

As we continue the climb out of the recession of the last couple of years and there seems to be hope on the horizon, the tendency to be upbeat and positive about the future is enticing.  Afterall, there are books like, “The Secret” that propose that you can have anything you want in this world – anything – so long as you think about it positively enough. For instance; if one wishes to lose weight, the book maintains that you can focus on being skinny (perhaps without as much attention to eating right or exercising).  If one desires to be independently wealthy, all one needs to do is to tap into the universe’s power, spirit, or secret and believe strongly enough and it will be delivered.

As any business person can tell you – that just is not a high probability outcome!  The laws of mathematical odds dictate that hoping for a low percentage outcome will lead to failure much more frequently than success.  So, while there is something to be said for maintaining a positive PERSONAL outlook on things and to be goal-directed; it is not to come at the expense of being fact-based, practical, and occasionally negative about ideas, processes, or initiatives that are less likely to contribute to the success of the business.

In a twist on what it SHOULD be in business, positive employees are promoted, given more plum assignments, higher raises and generally have brighter futures in companies while the more grumpy and negative employees are treated less like team members and more like outsiders or are isolated.  In fact, it is essential that the realistic and rational be heard.  To the extent that the people who are seen as negative can provide challenges that are business-based and promote better decision-making, they should be encouraged.

The Balance

Opponents of negative thinking do not see or believe that it is possible to be both negative and happy (I am making a distinction between being positive and being happy.  They are not the same).  The truth, however, is that negative thinking can have a positive influence.  The improvement on product design, marketing plans, ROI analysis, etc. can often be credited to someone who looked at the initial initiative and saw room for improvement. 

 It can be suggested that negative people, in their effort to improve upon the existing efforts are forced to communicate better, think more clearly, make fewer mistakes, be less gullible, and are better at decision-making.  Afterall, in order to rise above the internal inertia of sticking with the existing strategy or tactics, they must demonstrate an enhanced information-processing strategies.  Curiously, research has shown that what it all comes down to is that negative people pay more attention to their surroundings. They’re not always negative solely for the sake of being negative.

What To Do

Here are five ways to work better with negative thinkers:

  1. Don’t try to change them. It could be that their good aspects outweigh their inconvenient attributes.
  2. Seek their opinion. Chances are they’ve picked up on stuff you’ve missed, especially if you tend to be incessantly optimistic.
  3. Let them vent. Sometimes all they want is to be heard. Their ideas and solutions can be really valuable.
  4. Plug information gaps. An absence of information causes them to panic, so be honest and forthcoming with what’s going on.
  5. Engage their minds. Give them problems to solve. Consult them when making decisions.

Being a Grinch does not mean that one is not being positive about the future of the business just because they are negative about current plans, product ideas, or other ideas.  They may just be what will ensure the most positive outcome!

Social Media and Business

Wednesday, December 15, 2010 by:David Zahn
Comment
Comments(1)
|
|

Time Magazine has announced that Mark Zuckerberg, a 26 year old entrepreneur and creator of Facebook, is the “Time Person of the Year.”  With much fanfare and gallons of ink devoted to the creative genius of the idea, business platform, and usefulness of the application; one out of every twelve people ON THE PLANET now has an account with Facebook.  To say that it is a success is an understatement of epic proportions, and yet – businesses still are not leveraging it as well as they could.

Social Media guru, Mark Zuckerberg is Time's Man of the Year.

 The ways that businesses choose to use the social media outlets often are off strategy for their needs.  One example of this is a colleague of mine who owns a small business that employs ten employees commented on how her partner had “friended” some of the employees and how that seemed to change the interpersonal dynamic within the workplace from a place of business to a place to catch up on postings, comments about pictures in profiles, and reduce the level of professionalism and increase the feeling of being school-aged kids sitting in the back row of a class and passing notes to each other instead of paying attention to their classwork.

One critic of how social media is being misapplied is Peter Shankman, who wrote a blog recently about his perspective on what businesses do that misses the mark for maximizing results.  He rightly points out that social media needs to be an extension of the company’s marketing plans and integrated into the company’s strategy to generate sales, revenue, and profit.  Instead, Shankman shares that the questions he received after he spoke to one Fortune 100 company centered around:

“1) So how do we get more followers?

2) So how do we get more likes?

3) Should we hold a contest to get more followers/likes?

4) How do we get our followers/likes to spread the word about us?”

Shankman continues that while these may be leaders in their field and smart people to boot, they are clearly mesmerized by the “shiny new toy” and have forgotten the basic principles still apply.  His mantra when it comes to social media is captured in 5 basics:

Basic #1: IT’S ABOUT MAKING MONEY.
Any business executive would question a request from a subordinate to spend millions of dollars on events, advertisements, and activities that had as a goal – make people like us. And yet, Shankman points out that when the venue is social media, the same evaluative criteria are no longer applied.  If it is not tied to generating income, revenue, or profit, it is not a smart business decision.  If there is no ROI provided for the spend, then the decision needs to be rethought.

Basic #2: YOU DON’T MAKE MONEY WITH CONTESTS, PROMOTIONS, OR FREE STUFF.
Shankman points out that far too often the intention of a contest (to bring in new customers) goes awry and the people who respond are not prospects, customers, or even those that can introduce the business to new clients.  Rather, they are people in search of something for nothing.  They just want the free stuff.  There is no loyalty, no relationship, no business to be had.  Shankman proposes that the better approach is to hold a contest for the existing customers ONLY.  In that way, the brand or the company is further solidified in their minds.  To try to “buy” customers through a contest is a wasteful spend of money and social media will help accomplish the losing of money faster and deeper through the instantaneous nature of the communication.

Basic #3: Number of Friends/Followers are the equivalent of “My Daddy is Stronger than your Daddy”.
Shankman points out that numbers for the sake of numbers are a fool’s pursuit when the only thing that matters are number of CUSTOMERS, amount of REVENUE, and QUALITY of connection.  In fact, he advises that it is best to cull the lists down periodically and actually remove people who are either not providing value or receiving value from the connection.  If there is no business purpose to the connection, then Shankman recommends deleting the person from the “torture” of further communications.

The next one is a direct quote from his blog (with small edits to make the point without using some of the profanity in the original) that really captures the core point of his post:

Basic #4: CONVERSATIONS happen over beers. ENGAGEMENT happens over cash registers. Yes, it’s lovely when a brand converses with me. But you know what? A conversation isn’t going to make me buy. A conversation is something I have with my running partner during my cool-down run about how poor my non-cool down run was. I don’t want to converse with Nike or Pepsi. I want them to notice that I’m buying their product and reward me. I want them to help me when I have a question, and I sure as hell want them to engage me when I reach out with a problem. Conversation? Leave that for the Friday night bar-after-work scene.

Basic #5: Much like charity, all this stuff starts at home.
The last point made by Shankman is that rather than spend so much time monitoring what is said about a company, or focusing on having accounts on all of the leading social media sites (that then go unattended), companies would be better served to actually conduct the business when face-to-face at a customer pleasing level.  Empower employees to act, review standards of performance so that clerks are trained and rewarded properly and many of the complaint tracking needs would be reduced or eliminated.

Social Media may be fun and may help connect people to each other, but businesses need to remember that they are not in existence purely for the emotional experience; there has to be a payoff for their actions that can be brought to the bank as a result or it is just simply a waste of time, energy, and resources.

Cash, Credit, or Concern?

Tuesday, December 7, 2010 by:David Zahn
Comment
Comments
|
|

Given that this is the holiday season and the economy has not been as robust as many would have hoped it would be after the tinkering by the Federal Government to avoid a crisis, a strange confluence of activity is occurring. People are feeling compelled to spend on gifts, parties, and holiday celebrations, but are having to give careful consideration to how they plan to pay for their purchases.  Businesses; and retailers especially are having to make decisions based on the need to be competitive – and yet to also manage their own finances, cash flow, profit and revenue.

Cash

Businesses have to remain focused on money during this holiday season.

Most retailers are quite happy to receive cash for purchases.  As an asset it is immediately able to be used for purchases, saving, or any other use without having to wait for processing, costs to convert, or incurring fees to have third-parties involved in the transaction.  Further, cash is legal tender and as such, it is accepted in exchange for products or services.  Although there are some businesses that prefer not to handle cash (one example are purchases made on certain airlines can only be paid for with debt cards, credit cards, or non-cash options), most are more than willing to accept it.

The downsides to handling cash are that one must make change for payments that are in denominations above the cost of the purchase and the ease with which the cash can be taken by others if not properly protected.  Additionally, having cash on hand also often requires making separate trips to a bank for deposts or risk having huge sums on the premise (which invites unsavory sorts to consider stealing it or runs the risk of it being lost).

Credit

Another common way that purchases are acquired is by the use of credit cards.  From a business person’s perspective, the use of credit often serves to make it easier for customers to make a purchase, and therefore can increase the number and amount of sales.  The business then has a separate relationship with the credit provider to have them pay the amount charged minus a servicing fee or transaction fee. 

 However, the convenience offered by the credit card to the shopper or purchaser comes at a cost to the business.  The business must now wait a period of time (contractually determined) and has to pay anywhere from 1.5% to as much as 5% of the purchase fee to the credit card for transaction processing.  The issue becomes exacerbated when a business accepts returns or has to refund money for a purchase.  In that instance, the business has to pay the processing or transaction fee twice – but no actual purchase has been completed!  It is for that reason that some businesses have instituted a “stocking fee” to accept returns back (to cover the physical costs of having to return something to inventory, but also to cover the administrative fees associated with the product’s return).

Payment Plans

Some retailers or businesses allow for payments to occur on a plan or on installments.  Of course, even in those instances, the product is usually not transferred to the customer until the last payment is made.  In trying to break up a larger cost into smaller and more manageable payments, it can often help a customer afford the purchase.  Ordinarily, the business does not pay interest on the money paid over time, though banks used to offer “holiday savings plans” that were savings accounts that did provide interest to the depositor (those plans seem less frequent now as they have been replaced in large measure by credit cards).

 However, not all industries or businesses can as easily use this approach.  It would not work with a service provider as easily as it does with a product (going to a Veterinarian and having services provided, medicines given, and then expecting to pay on a payment plan is unrealistic as the Veterinarian cannot “hold” the pet until the last payment is made).

Internet Competition

The internet has become a very accepted and established way of making purchases for many customers.  However, for the business that relies on foot traffic or personal relationships to transact their business, the internet business model has led to a new requirement for many businesses – free shipping.  The expectation that customers will not have to pay to receive a shipment is now a standard in most instances.  The cost for delivery of product is increasingly being borne by the business shippping the product.

This holiday season is a good time to consider just how well cash flow, expenses, liquidity, and fees for servicing customer transactions are being monitored and managed.  In an economy where profit margins are being squeezed to remain competitive and to attract customers, the other side of the calculation (costs, expenses, and administrative fees) must be closely evaluated.

To Party or Not

Monday, November 29, 2010 by:David Zahn
Comment
Comments
|
|

This time of the year is when many companies wrestle with how to acknowledge the season and how to show their appreciation for both their employees and their customers or clients.  The issue of HOW to behave will be addressed in numerous articles, tv stories, blogs, and the like; but WHETHER to hold a party or not; and WHO to invite to the party; and WHAT kind of party to hold continues to perplex executives confronting the issue.

Companies must decide whether to hold a party or not.

Importance of Actions, Not Words

One company walking that line between showing sincere appreciation for employees and customers during this holiday party season without overdoing it is Cohen and Wolf PC.  Unlike some other companies that have recently had to reconsider their approach to parties given the economy or other factors; they have always had a low-key approach to internal parties during the holidays.  Dan Nagel, a Principal in the firm’s Real Estate and Common Interest Group, and a member of the firm’s Marketing Committee shares that; “the firm has always held three holiday parties. One has always been a staff only party (no spouses) held at a local restaurant where a grab bag of nominal value gifts is exchanged.  A second is a black tie party for attorneys, senior staff and their spouses.  Third, a potluck and hor d’voures tasting get together for attorneys and staff in our office “. Nagel differentiates their approach from some other companies by pointing out that, there is no lavish 400 person ball and there are no 3rd parties included.”  On a smaller scale, Southport Veterinary Hospital chooses to keep things very informal.  Dr. Patricia Hart noted that, “we don’t do any big party for clients or ourselves.  We just do a small restaurant thing for staff.”

Fairfield county restaurants contacted for this article added that while they are booking holiday parties at a level comparable to previous years, there is a greater emphasis on controlling menu options available for party-goers, ancillary expenses, and going alcohol-free for the parties.  Some companies are controlling costs by switching to employees only, timing it for lunches vs. dinners, and weekdays vs. weekends.

Avoiding Client Backlash

Cohen and Wolf is very attuned to the appearance of holding lavish parties inappropriately while clients or others in the community may be struggling in the current economy or political environment. Dan Nagel commented that; “the firm’s 50th anniversary happened to coincide with the tragedy of 9/11 and was delayed and held as a much more sedate occasion than an over-the-top party.  The firm’s 60th anniversary is scheduled for next year and we are very conscious of planning an event will not be appropriate for the economic climate and not be excessive.”

Like many companies, the company does thank clients with various gifts of appreciation throughout the year to acknowledge their gratitude for the business, but very keenly avoids trying to solicit business through gift-giving.  Nagel recounted that the emphasis on offering meaningful gifts that are chosen specifically based on that client and relationship, “We have season tickets to many of the local teams, but as often as not, those tickets go unused because there is no attempt to force attorneys to use tickets with clients that would have no interest.  Rather, a meal at a vegan or kosher restaurant for a client with dietary restrictions is much more appreciated.  Toward the end of the year to express our appreciation, we provide significant clients with memory/USB devices, water bottles, wine sets with corkscrews, and other gifts that are both functional and able to serve as thank-yous to our clients.”

The holiday party dilemma is one that requires a level of finesse, insight, and aplomb to pull off well and not risk alienating customers or employees.  As such, the decisions made should be consistent with the current times and economy – but also allow the company to express their appreciation for those that have contributed to their business performance throughout the year.

The New Truths About PR (Part 2)

Wednesday, November 17, 2010 by:David Zahn
Comment
Comments
|
|

In the previous column, David Meerman Scott shared some ideas about how business owners can leverage the new media options to maximize their business performance. In this second and final column, Mr. Scott concludes answering additional questions. As a reminder, he will be speaking at the FCPRA in Stamford, CT on November 22nd (register at www.fcpra.org.).  Scott’s most recent book has recently hit the best seller list on both the Wall Street Journal and USA Today as of 11/7/10.

David Meerman Scott, Expert in Social Media to speak in Fairfield County

 

6.       Is it best for the CEO to participate or to have a professional staffer do it?

DMS: Only people who are passionate about a subject should participate. If the CEO is passionate about the business then they should be communicating. (I fear for you if your CEO has no passion. Probably time to quit your job.) NEVER should a CEO employ a ghost writer!!! The more people that participate in your company – the more you benefit. The mind-set has to start at the top. If your leaders get the need for real-time speed they must give explicit permission and proactively advocate cultural change at all levels. Companies who are wiling to take the challenge of participation in real time have the potential to create a new market niche, and a competitive edge by delivering faster than everybody else.

Of course, the downside is that without a plan for how to share and what to share online – the potential damage done by an untrained person can be enormous. Social media mistakes can hamper the best intentions of any corporate executive.

7.       What resources exist to learn how to do it “right?”

DMS: Dare I say that my books: The New Rules of Marketing and PR and Real-Time Marketing and PR are great starts? Both are bestsellers and New Rules is now in its second edition, and is published in 26 languages from Bulgarian to Vietnamese

Of course, the presentation given on the 22nd will address many of the tips and techniques included in the books, as well.

8.       How do you measure success? What is the objective?

DMS: How are sales? How many people are talking about you? How many people are recommending you to their networks? Are you having fun?

Like all marketing efforts, if there is no clear benefit or advantage derived from the participation in social media, then it needs to be re-assessed and improved so that it does create a positive outcome.

9.       What can one do to monitor or track social media influence?

DMS: Monitoring what’s being said and using social Web analytics to make reacting to it a part of your organizational culture is critical for any business that is serious about operating in real time.  Two free tools to use right now if you are not already are news and blog alerting tool like Google Alerts and a Twitter client like TweetDeck. Enter your company name, products, services, and category of product and monitor what’s happening.

10.   What companies do it best? 

DMS: I love talking about the US military. All 3 million members of the Army, Navy, Air Force, Marines, and Coast Guard are encouraged to be active in social media. If the Pentagon brass have overcome fear, so can you.

11.   How do you cut through the clutter of all of the inane chatter about personal nonsense to share a business message?

 DMS: You understand that in today’s real time revolution, the swift are out front, and you EARN attention online by creating something that is interesting and publishing it online for free: A YouTube video, blog, research report, series of photos, twitter stream, ebook, and the like. Instead of creating jargon-filled, hype-based advertising, you create online content that your buyers naturally gravitate to.

12.   How should marketing budgets be allocated between and among PR/Advertising/Social Media?

DMS: How do you allocate budget for the telephone? I think online communications is not a nice to have. It is essential, like the phone, and therefore should not be thought of as a budget item.

13.   How do I decide whether to blog/LinkedIn/Twitter/Facebook or do anything else/nothing at all?

DMS: Before you decide this, you need to decide who you want to reach and which tool will work best on your or your company’s behalf for doing so. You must also decide what content you will use to engage the audience with those tools. Whether you are a solopreneur or a major corporation content has in many ways leveled the playing field. When you build content especially for your audience, you build a relationship with people before you’ve even met them. When it’s obvious you understand your buyers and their problems, it jars your visitors into paying attention.

 For more insight and discussion around the evolving fields of marketing, PR, social media, etc.; be sure to register for the presentation at www.fcpra.org.

The New Truths About PR (Part 1)

Sunday, November 14, 2010 by:David Zahn
Comment
Comments(2)
|
|

Come hear David Meerman Scott in Stamford

One of the most disconcerting things that can happen in business is that once the owner believes they have figured out what to do, what works, and how to do it; the capabilities and requirements change.  The “rules of the game” shift and what once was seen as progessive is now outmoded or replaced by newer methods of performing.  This is perhaps nowhere as true as it is in Marketing and Public Relations.  With the speed of change in technology, the pervasisveness of social  networks, and the cultural acceptance of many of the new sites and platforms for communication; there has been a revolution in how to integrate the use of social networks into one’s marketing and public relations efforts. 

 On November 22nd, the Fairfield County Public Relations Association (FCPRA) will host renowned expert, author, and consultant, David Meerman Scott in Stamford at the Italian Center for a breakfast meeting scheduled to start at 7:30am to discuss how businesses can leverage the “real-time marketing skills” needed to compete in today’s marketplace. In what promises to be an illuminating presentation, Scott will address issues including:

  • How real-time marketing and public relations can help and hurt today’s communications professionals;
  • Ways in which the Internet fundamentally impacts the way in which we do business; and
  • How speed and agility are a major advantage in today’s competitive marketplace.

David Meerman Scott will speak in Stamford on November 22nd.

 Scott recently answered a number of questions posed to him in anticipation of his presentation addressing the new truths of real-time marketing and PR.

1.       Define social media (what it is, what it is not)

DMS: Most discussions about “Web 2.0” and “social media” focus on the technology . We hear discussions about blogging, blog software, YouTube, and tools like Twitter and Facebook. But what few people have figured out is what kind of content brings out the enormous potential of this technology. What that requires is understanding your buyers and building the content to get them to notice your ideas.

  1. So, in essence, the need for being customer-focused supercedes the enticement to use social media to explore the outer reaches of what the technology “can do.”
  2. 2.    What are the “new rules” vs. advertising and PR?

DMS: Many marketers steeped in the tradition of product advertising naturally feel drawn to prattle on and on about their products and services. Marketers need to understand this, “Nobody cares about your products and your services (except you).” What people do care about are themselves and how a product can solve their problems. Instead of hyping products and services, new rules demand that marketers/companies create interesting, compelling and useful online content for their potential customers.  In all your communication, think how it benefits the customer, not what’s in it for you. 

3.       What are the “dangers” of participating in social media?

DMS: The only danger is choosing to not actively participate online because even if you choose as a company to not participate, your brand and your company are still being talked about.  Many company executives and PR people trace their worries about social media to their belief that “people will say bad things about our company.” This fear leads them to ignore blogs, online forums and prohibit employee social media participation. But the benefit of this kind of communication is that you can monitor in real-time what’s being said and respond appropriately. You can meet your customers’ needs in real-time and that’s an incredible advantage over your competitors.

Of course, we have recently also seen CEO’s like John Mackay run into trouble when he blogged under an assumed name about the merger with Wild Oats Markets.  Steve Jobs, of Apple has also been criticized for how he has answered customer posts on blogs and corporate bulletin boards.  So, while it is advisable that companies not shy away from social media, it is also appropriate to realize that whatever is shared will be subject to review by anyone and everyone.

4.      What should companies do to make sure they are adhering to good “brand messages” in social media that are on strategy?

DMS: I think the nature of “brand messages” is inherently dangerous because it forces marketers to be stupid because it means that companies talk in an egotistical manner. The right thing is to forget about you and focus on your buyers and your marketplace and let that drive how you communicate.  

5.       Is Social Media private communication or not?

DMS: Everything you put on this Web is accessible and it will continue to be so.

Here in Connecticut, there is heightened interest in this issue as a woman was recently fired over Facebook posts.

Part 2 will include additional questions with David Meerman Scott in preparation for his presentation to the FCPRA to be delivered in Stamford.  For tickets, please go to http://fcpra.org/.

Does Nostalgia Sell?

Friday, November 12, 2010 by:David Zahn
Comment
Comments
|
|

As we approach the Thanksgiving holiday, many of us begin to reminisce about the smells, tastes, and memories of going back “home” (whether home is a few time zones away or just down the street). In the haze of our recollections, we tend to romanticize our experiences and heighten the more positively prominent aspect of our history or legacy. We also tend to downplay the negative or view it through a different lense. The tension, hurt feelings, having to sit at the “kid’s table,” etc. now are remembered much more fondly than when they were a more current experience.

For most people, the thought of returning to a place we are familiar with and know well (and are well- known)  is sought after much more commonly than a place we are unfamiliar with or from which we feel disconnected.  However, that insight seems to be discounted by many business people and experts. 

Conventinal Wisdom

 If an entrepreneur were to listen to most business experts, read the latest writings of gurus, or investigate what passes for progressive thinking, s/he would comer away believing that one must constantly be innovative, re-create the business to adapt to new realities, and seek to re-invent onself.  And, it is hard to argue with any recommendation that suggests that the business owner should constantly be vigilant about monitoring, measuring, and challenging the relevance of the business versus customer expectations, competitive realities, and current economic pressures.  However, taken to an extreme, the business begins to resemble a “Flavor of the Month” entity and loses what makes it the company it was, has been, and potentially is and will be into the future.

So, how does one align remaining contemporarily relevant, and not losing what made it “home” for previous customers, shoppers, or clients?

Personal Example

Nathan's is best in Coney Island

My personal experience with this is around the hot dogs, french fries, and orange drinks available at an outdoor seating restaurant in Coney Island, NY called Nathan’s.  Living in Connecticut, it is a rare treat to head down to Brooklyn (3 hours or so), stand in a line 20 deep, have to step over and around all of the bird droppings, pigeons begging for food, avoid the spilled saurkraut, mustard and ketchup on the ground, and then have to battle for a seat at one of the outdoor tables that have not been wiped down from previous diners since the Carter Administration, or choose to eat over a filled garbage can and swat away the bees or flies that attempt to share the meal with you.

How appetizing does that sound to you?  Of course, it does not at all.  And yet, even though there are now “outposts” of Nathan’s restaurants in airports and in free-standing locations, those are not nearly as desirable as the “original.”  Afficianados even maintain that somehow the food tastes better BECAUSE it is eaten in that environment.  They maintain that the “pain” of the experience enhances the enjoyment.

What Is the Application?

So, what can be done to take a lessons learned approach to this seemingly random experience? 

Businesses are sometimes best served to remain as tey have been if there is a “legacy memory” that exists.  When Nathan’s attempts to expand their menu (they tried pizza for awhile), it is not endorsed by the customers.  One goes to Nathan’s for hot dogs, crinkle cut french fries and perhaps one or two other items.  Trying to be “fashionable” and appeal to those with different tastes is outside their ability.  No one would ever consider ordering a Chicken Satay (if it even existed on their billboard menu) or think of asking for a garden salad. 

 A recent article on innovation ran in Forbes that speaks to the problems that some businesses confront when they attempt to innovate and run the risk of diffusing their identity in the marketplace.  Sometimes, it is best to just be what and who you are, warts and all.  Afterall, it is family!

Working Out Without The Sweat

Wednesday, November 3, 2010 by:David Zahn
Comment
Comments
|
|

As we approach the holidays, many of us are concerned about not indulging in bad dietary habits and then having to live with the guilt of weight gain. To combat the excesses of holiday eating, many of us will have to endure the sweat, pain, and fatigue of working out.  Contrarily, businesses have a chance to work out as well, but their workout is not nearly as tiring, does not cause perspiration, and in fact; actually makes things easier and more productive.

Began at GE

As with many business initiatives,Fairfield’s  General Electric (GE) was at the forefront of a particular business improvement process.  Since the late 1980′s GE has been conducting a methodology for reducing complexity in business processes and improving employee accountability for results.  The process is referred to as “GE WorkOut” and has now been adapted by many other companies to help them create more productivity and efficiencies.  The process is focused on:

  • Streamlining existing processes and simplify the steps/complexity of procedures
  • Reduce and eliminate work tasks that do not contribute value
  • Identify and prioritize new business needs/initiatives quickly
  • Reduce the time required to make decisions
  • Increase the level of compliance with new initiatives
  • Improve implementation support for business processes
  • Empower workforces to asssume responsibility for results (ownership of outcomes).

How it Works

The WorkOut process is implemented by bringing members of cross-functional groups (stakeholders in the outcome, production, delivery, or other involvement) together and ensuring that those closest to the work output can contribute recommendations that can be acted upon fairly immediately.  Ordinarily, recommendations are tied to action plans and implemented within three months (90 days).  Senior management is linked into the process by providing oversight and guidance on the strategic imperatives or most important priorities forbusiness  improvement.

When correctly implemented, the WorkOut process builds synergies across different functional silos that often emerge within organizations to focus attention on business issues that are shared or experienced in common across departments.  Further, it serves to reduce the disparity in views on issues between the management team and those tasked with performing job tasks. Lastly, it also encourages shared values that positively impact the business without regard for organizational structure, managerial level, tenure, etc.  The internal morale and commitment to the organization therefore often improves.

The WorkOut process includes immediate follow up and action planning to implement recommendations.  Unlike other committees that are formed to “study” issues and rarely take the steps to recommend actions to improve results.  The WorkOut process is most effective when it can be implemented and focused on solving a business issue that cuts across multiple functions and has the endorsement and support of senior managers, while also assigning the right mix of people that are empowered to act upon the output of the WorkOut team’s recommendations.

"Talent wins games, but teamwork and intelligence wins championships."

Importance of Team

As anyone who has ever been part of a group or a team tasked with achieving an objective can attest, if the group is not universally committed to the same goal, the chances of succeeeding is greatly diminished.  In many organizations, management makes decisions without a full appreciation for what those decisions may mean for those that have to execute or implement them.  Those that have responsibility for ensuring that work is completed correctly according to management’s wishes are often left feeling under-appreciated and as if management is disconnected from the ramifications of those decisions.

Michael Jordan famously commented that, “talent wins games, but teamwork and intelligence wins championships.”  The WorkOut process provides opportunity for team members to collaborate to ensure that the work is done according to realistic contraints, and done in a way that maximizes the skills of the team members.

Page 1 of 812345...Last »