Have you ever asked a question only to receive the dreaded, “Because I said so,” response? This is often a phrase repeated to children, but even adults are prone to hear things like, “Because this is the way we’ve always done it.” If you’ve been on the receiving end of these statements, you know that they are never satisfactory explanations to questions. They’re a cop out—a way to evade the underlying issues and, perhaps, an unintentional admission of one’s fear of change or refusal to embrace innovation. And, that is exactly how we get stuck in patterns that don’t work within systems that are unwilling to adopt new structural paradigms—even when it’s the obvious answer.
Many people, myself included, have been writing on this topic for 5-10 years—reiterating time and again that our economy is dramatically changing and many analysts are ignoring the consequences. What is even more perplexing is that we continue to ignore some proven models of success.Several years ago, Walter Isaacson wrote in The Innovators about the impact of technology, the digital computer, and Internet revolution. These trends have only accelerated in recent years. One of the most interesting themes is the commitment, diversity, collaboration, and even friction, among diverse participants in almost every phase of the revolution, such as Jobs and Wozniak or Gates and Allen.
The results of this technological shift are evident in a comparison of stock performance of traditional companies versus newer tech companies. The stocks of P&G, I.B.M., G.E., Coca Cola, Dupont, and AT&T have DECLINED an average of 8% annually over the last 5 years. In contrast, the price growth of companies like Google, Facebook, Apple, and Amazon has increased at a rate of 24% annually. This trend is also evidenced by G.E. and other huge companies’ recent decision to dissolve their outdated structure.
To put that in perspective: investing $100,000 in the traditional companies 5 years ago, would be worth about $66,000 today. Investing $100,000 in the tech companies 5 years ago would be worth about $300,000 today.
Financial advisors also seem to be reluctant to embrace this shift. For example, much of their discussions focus on bonds versus stocks rather than tech stocks versus industrial or value stocks.
It’s really no surprise that so many businesses are failing considering both society and business refuse to recognize that old paradigms and structures are already obsolete or are well on their way. For example:
Large corporate structures (like print publications and brick and mortar retailers) are all gradual losers, or worse.
Companies as well as society continue to do what they have done in the past, often with poor results. Despite massive economic and political efforts, issues like income inequality, healthcare, and infrastructure investment will continue to hold back our economy.
With little real attention to these changing trends, the poor performance of many organizations is virtually a given.
Even more distressing is that it’s the structural paradigms of these organizations producing much of the deficient results, rather than the typical financial discussions. For instance, the long-held propositions that business advantages, like economies of scale and utilizing expertise and marketing synergies, are simply false in many cases. Rather, these and other former industry leaders are failing because of the following limitations:
Many large companies have tunnel vision, organizational constraints, etc., and ignore emerging technologies and opportunities.
They lack the flexibility to respond to the needs of the market and use outdated solutions to new problems.
They fail to allow the vision, entrepreneurship, and risk necessary to succeed, while heaping huge income growth on unproductive leaders.
In contrast, new structural paradigms are providing numerous opportunities for successful change:
The success of smaller, more innovative companies shows that many organizations should get smaller (or act smaller) in order to effectively deal with today’s environment.
Reducing layers and creating professional cultures are a start. Boards and management need to split up organizations like G.E., create spinoffs, or implement more independent groups. That may be what’s really necessary to maximize the potential of both individuals and organizations.
Large organizations say they want excellence, entrepreneurship, innovation, risk-takers, etc., but, really, they tend to encourage mediocrity. For example, short-term goals and reviews for both organizations and individuals actually inhibit the development of more positive cultural characteristics, rather than spur them on.
Testing and failure, which are critical parts of innovation, are punished more than rewarded. Even sound risk-taking is reduced because of the fear of repercussions within the organization. In short, organizations frequently ignore the advice, “you can’t score if you don’t take a shot.”
Organizations need to be open to measurement and feedback. Looking, understanding, and sharing financials, operations reports, and sales reports are the first step towards embracing new structural paradigms. Simple research studies, social media, and other devices are additional tools.
Open systems and collaboration are like winning the trifecta at the horse track. Open systems have been around for a long time but are becoming the norm for success. They reject bureaucracy, authority, hierarchy, and closed decision-making processes. They encourage participation, diversity, new rules, and to some extent, chaos.
These new structural paradigms, cooperation, smaller can be better, and open collaborative systems, offer great hope for organizations. While they rely on innovative approaches to problems, the solutions are readily available. Therefore, once we acknowledge that different strategies are needed, we can implement new tactics, provide opportunity and education, and allow our organizations to be effective.
I strenuously argue that if we do not learn to accept and accommodate innovation and deviant behavior both inside and outside of organizations, we cannot change or achieve excellence.
Imagine waking up and being excited about going to work.
What would it take for that to happen? Perhaps a boss who understood your
needs? Coworkers who were easy to collaborate with? Clear communication between
departments? A challenging, but manageable workload? Good pay, benefits, and
some fun office perks like free lunches? In short, most of us require a work
environment that supports our needs while encouraging productivity in order to
be happy and successful in our jobs. Employee satisfaction relies heavily on
company culture.
Establishing a successful culture is crucial for the overall
progress of any company and maintaining a positive atmosphere with clear
expectations is essential to facilitating employee performance. A great
strategy that lacks a supportive culture is sure to fail, while an environment
where people feel they are being given the recourses to excel will result in a
much higher success rate.
So, how do you create a successful culture?
Encourage
Communication
Surprise! When everyone is on the same page, things run more
smoothly! Set goals and develop strategies to achieve them. And then share those with your teams.
Inclusive environments foster a stronger sense of belonging, which can increase
performance.
Accept Failure
It’s inevitable. Acknowledging that fact from the beginning
enables everyone to get over their “fear” of it happening. If employees know
they will be supported when it happens, they’ll be more likely to take
(appropriate) risks, which can lead to innovation. When people are afraid, they
can’t perform to their full potential, as fear is one of the leading factors
that holds us back and prevents us from trying new things.
Look for the Positive
We’ve all felt what it’s like to work with/around negative
people—their energy sucks everyone else down to their level. We feed off of
those around us. Create an atmosphere where everyone lifts one another up. Finger
pointing and attempting to place blame is never productive. When a problem
arises, work to find a solution. When mistakes happen, look for the lesson to
be learned and grow. Everyone will be better for it. A culture that focuses on
learning from mistakes will always be more equipped to deal with them when they
arise.
Provide Assistance
Make sure employees have the resources they need to succeed.
That may mean providing additional training, one-on-one feedback, updated
equipment/software, or extending deadlines. Understand your employees’ needs
and let them know they can rely on you to back them up.
Ensure Employees Have
a Voice
This can be as simple as a suggestion box where employees can
anonymously provide feedback. The key here, however, is that all suggestions
must be thoroughly considered. Just allowing people voice their
thoughts/opinions/concerns isn’t enough. Their suggestions must be
appropriately addressed as well.
Treat People Equally
and Individually
This might sound contradictory, but it simply means that,
while everyone should be treated fairly and equally, their individual needs also
need to be taken into consideration. Some might need more supervision or verbal
encouragement while others thrive being left with complete autonomy on a
project.
Bring Back Basics
We all want to be respected, appreciated, and acknowledged.
Be kind and remember that a simple, “Thank you,” goes a long way. And don’t
forget to have some fun. Sure, it’s work, but we all like to have fun while
doing it. Have a company picnic, organize a holiday party, or join an
intramural sport with coworkers. The more you bond outside of work, the
stronger the team will be at work.
Obviously, each environment is unique and the type of
culture you cultivate will be specific to the needs of your individual
organization. While a majority of these examples are universal, it’s up to you
to decide what culture will work best for the success of your company.
Poll:
Which aspect of work
culture is most important to you?
(Please let us know
in the comments!)
Work/life balance
Benefits package (health care, PTO)
Flexible hours
Positive/likable coworkers
Feeling challenged
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, his focus is on working with select startups and small businesses.
The potential and strategies of branding are critical today, yet the practices and requirements are dramatically changing. In particular, branding is still dominated by marketing, differentiation, and promotion activities. Right now, technology, customer needs, and operations are becoming vital components of the branding process.
In particular, I argue that many branding experts focus too much effort on packaging, advertising, logos, and copy. At the same time, they often ignore issues like value, service, quality, culture, and our digital environment. If you don’t believe that, just compare the focus of many brands on department stores versus places like Amazon and Costco.
Here are some ways to improve branding:
1. Digital Branding
Brand management frequently does not pay enough attention to the digital world. Branding efforts need to be comprehensive, so it is good to support your efforts with a web site, social media, brochures, etc.
Automation, efficiency, and digital solutions have also allowed us your focus on solutions rather than just meeting customer’s needs. Market the real product your customer wants to buy. For example, the same customer may want the prestige of a designer purse name, and then buy generic labels at the grocery store to save money.
2. Operations
Service, image, and culture are frequently the biggest (and often least expensive) opportunities for small companies to develop a brand and differentiate themselves. Some suggestions:
Focus on your target market, segment, and your ideal customer.
Be polite, listen and then act based on what you have learned.
Become a trusted resource to your prospects by providing information that will help them make a good choice.
Build an email list and send informative mailings on a regular basis.
Keep in touch with potential customers and existing customers.
3. Quality
Quality needs to vary by customer and need. Let’s face it: IKEA makes great utilitarian, well-priced, and good-looking furniture for many young people. However, it really isn’t made to last a lifetime. Other products (like pizza) probably have more variance in the perceptions of the consumer than in the actual quality of the ingredients.
4. Convenience
In this day and age, if you’re not offering some sort of ease of use or accessibility, you’re dead in the water. So, try and angle your brand to offer some sort of convenience, such as easy payment, delivery, and contact (24 hour customer service). These are just some options for offering efficiency to your customer in some way.
5. Value
It’s one thing to nab the customer…. But to keep them coming back? That’s the golden ticket. Your product or service can’t be just a one-time thing. It has to be a many-time thing! It’s called customer retention – keep them coming back, and you’ve got guaranteed revenue.
Remember that value can vary, and it often depends on the situation and the perceptions. For example, Nieman Marcus, Costco, and Amazon all offer quite different products, but since they have quite effective value, many customers shop at all three retailers. As an aside, I love the free samples at Costco.
6. Company Culture
In researching this blog, I searched branding on Google. The articles barely mentioned culture (if at all), which I consider to be one of the most important components of branding. Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy, without a supportive culture, will undoubtedly fail… I’ve seen it happen too many times.
Setting the right expectations, providing support, and accepting responsibility as a leader are all non-negotiable aspects of nurturing the culture in your company. In addition, you must never cease to measure what seems unquantifiable (in order to consider your attempts at creating a successful company culture).
There is no better example of this than the Golden State Warriors, who just won their third NBA title in four years. Much of the attention is given to their super stars, but if you look behind that, you see how the entire organization (including the training staff, coaching staff, medical staff) are all united to create excellence and a unified brand.
In summary, branding and differentiation are two of the key areas required to bring even the greatest new products and services to market. These two strategies are linked and are primarily a function of ensuring that your product or service meets the needs of your consumer.
As one expert said “We all know the adage…. features tell, benefits sell.” If this is true, why do so many entrepreneurs still speak in terms of the features of their product or service and not its benefits? Your prospective customers does not care what your product or service does… they only care about what it does for THEM!
Ready to achieve success by improving your company culture? Contact us today.
Dr. Bert Shlensky, president of Startup Connection (www.startupconection.net) has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business and President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startup and small businesses.
It would be pretty cool to be a super-secret agent like James Bond, or Jack Bauer, or Jason Bourne — or ETHAN HUNT! Yeah, that guy from the films “Mission: Impossible” played by the one and only Tom Cruise. What’s funny is that the best business culture out there embodies the secret agent accomplishing amazingly insane feats, hanging by a thread on a plane or scaling a big building. Maybe disabling a bomb with a toothpick? Now I’ve got your attention, but you’re pretty confused: how can your business culture be like that? Easy:
The Trick to Your Business Culture Being Like Espionage Is Competitive Analysis, Namely KNOWING HOW TO PRICE YOUR PRODUCTS EFFECTIVELY!
And it’s no easy feat. Take our word for it. Many small businesses have the tough challenge of trying to price their products at the right amount — not too cheap, not too expensive. They want to be competitive enough…. But not sell themselves short. And honestly more often than not, you’ve got a lot of businesses out there pricing way too low.
The trick is to analyze the competition. Spy on them. Sort of “break in” to their secret facilities and know how they operate. This is especially the case when it comes to the biggest e-commerce giant Amazon as the lead competitor. How it relates to business culture? Your team, your entire business, needs to review everything the competition sells, in and out.
Scout the websites. Look at what Amazon is doing. What they’re selling. How they’re selling it. How much are they selling their stuff for. See if you can dynamically offer something better, something more unique. Match the price, look at your overhead. It allows you to be more competitive when you’re willing to spy on the competition, and believe me: it’s a lot easier to do that!
No lasers to do cartwheels over. No masking the traps or finding the loopholes. Back in the day it was hard trying to analyze the competition given the brick-and-mortar, but nowadays with websites just a click away, it’s pretty easy slipping into Amazon and getting the inside scoop.
So Make Sure Your Business Culture Is Doing Exactly That: They Need to Be Go-Getters, Predictors, Forecasters, Finders…. TRENDSETTERS. SECRET AGENTS.
Now we won’t say you could ever take Amazon down completely…. But you’ll definitely carve your niche and let the big boys know that you own it. And no on else will. Want to know more?
Dr. Bert Shlensky, President of The Startup Connection, directs all small business clients toward maximum sales and profit thanks to his 40 years of high-quality experience. He does this through technological, social, and online integration, supercharging your business success into the next level, so don’t hesitate to sign up for a free consultation RIGHT NOW.
No doubt that many avoid any kind of research, let alone market research, like the plague for a lot of reasons. This undoubtedly means your business culture suffers greatly due to a great fear in the office. A cloaked figure of darkness and a scythe, waiting to envelope you in the shadows of despair as you’re engulfed in never-ending data, statistics, and reading. It’s not fun!
Hence Why Your Business Culture Tends to Be More About Action and Results, Not the Preparation That Ensures You Get There
We want results — without a whole lot of work to get there. And don’t get us wrong: there are many things we do on a daily basis, best practices to optimize your business planning with the proven model that gives you the most minimal time crunch and maximum output and results. But hear us on this: you never, ever discount the preparation and planning, meaning the market research!
Fear is a funny thing, honestly. It’s only as terrifying as we make it out to be, but thankfully when you’re in on the trends of today and the power of the Internet, and other best practices you make second nature — there’s no doubt you make this grim reaper of market research more like a puppy dog!
Here are the best reasons for doing market research without breaking a sweat (or fearing death):
Google’s Marketer’s Almanac — How easy it is to just click the link and get all the information you need right at your fingertips on consumer behavior changes, especially during the seasons, holidays and special events. Yep, Google has the ability to give you that information in just minutes.
American Fact Finder — There’s no better research space than the U.S. census, but holy COW would it take forever for you to research that mile-long book. Thankfully, this website allows you to research all of it with a few button clicks and filters by age, income, year, race and location. Oh, and it’s free to use.
County Business Patterns — When was the last time you scouted businesses clear across the country? Probably never. Travel’s expensive, but this site makes it easy as it provides info on the areas and regions for large numbers of all sorts of businesses. Check it out for yourself.
Business Dynamics Statistics — Remember all that census data you just found? Guess what: now you can use this site to view the economic data on job creation, startups, openings, expansions, shutdowns, and even closures.
FedStats — The best part about finding information on certain industries is getting the info from all sorts of federal agencies. What’s hard is finding that info from those agencies as quickly as you’d like. This site accesses all that info for you immediately, for such verticals as agriculture, education, transportation, and energy.
MyBestSegments — This is next-level campaign research stuff when you think about it. We don’t know of any other tool out there that can review any region’s demographics in terms of lifestyle and habits. In other word, click on this site, and you can start researching your locale immediately to determine how your consumer base will react to any campaign you launch and even what competitors are near you.
SurveyMonkey — Surveys are the weapon to use, but for many people, they’re hard to create. Unless you use this site.
Loop11 — Even sicker and futuristic is this crazy site allowing you to actually test the websites of your competitors secretly. Simply create a form and recruit people. You have to see it for yourself!
Userlytics — Definitely last, but most certainly not least, is Userlytics, which does the uncanny. This platform actually allows you to webcam and screen-shot a user testing your mobile apps, videos, display ads, and much more. Talk about real-time and verifiable research….
And you better believe this trend-setting business planning stratosphere will continually evolving. Perhaps even avoiding death and achieving immortality.
That’s Why You Have to No Doubt Shut Off the Fear Due to the Tools. Fear NOT Market Research.
For these days it’s plenty easier getting all the data you need to ensure you have all the information you could get your hands on. And that cloaked demon over there ends up not as scary. Just a guy with bad skin, looking for a corn field to harvest.
Dr. Bert Shlensky, President of The Startup Connection, directs all small business clients toward maximum sales and profit thanks to his 40 years of high-quality experience. He does this through technological, social, and online integration, supercharging your business success into the next level, so don’t hesitate to sign up for a free consultation RIGHT NOW.
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Startup Connection
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
The potential and strategies of branding are critical today, yet the practices and requirements are dramatically changing. In particular, branding is still dominated by marketing, differentiation, and promotion activities. Right now, technology, customer needs, and operations are becoming vital components of the branding process.
In researching this blog, I searched branding on Google. The articles barely mentioned culture (if at all), which I consider to be one of the most important components of branding. Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy, without a supportive culture, will undoubtedly fail… I’ve seen it happen too many times.
book. Thankfully, this website allows you to research all of it with a few button clicks and filters by age, income, year, race and location.