Category Archives: business strategy

The very sad loss of Graham Rust.

Some days are just sad and today has been made so for me by the news that Graham Rust died in Prague yesterday.  You may have read the piece I posted here a few months back when Graham announced that he’d had enough of chemotherapy and was instead taking a trip … around Europe.  My feelings then were a combination of anger at the injustice and delight at the way he responded. I think those of us who knew him realised the inevitabilty of his all too early exit, but it nonethless leaves a hole in your life when someone you respect dies.

Tributes are already emerging from people who knew him longer and better than I, but at the risk of being as unoriginal as many of us look alongside Graham I just want to add my tuppence-worth.

I am sure there are many people around who met Graham without realising just how impressive his life has been, such was his humility.  A genuine mould-breaker he seemed to love what he did and did what he loved and it showed in the great ideas he has left us.

The agency he founded in Prague is a reflection of his personality and approach to life and work.  He achieved balance in most things that I particularly respect, tough and sympathetic, creative and organised – I loved the way he made work lists like an engineer, but tackled the problems they represented like the most liberated creative and he never lost his absolute glee for a neat solution.

We were the same age, but Graham taught me things that I am grateful for as he did the people who he took on and mentored at his agency.  There are many ad. people in Prague and elsewhere who owe their place in the business and their understanding of the work to this truly good bloke.

Aplogies to Richard Laurence Baron from whose blog I stole this great photo.  My only excuse being that I’m in Saudi Arabia at the moment and don’t have a shot of my own to use.

The dumbing down of marketing

There’s no doubt its tough on the streets.  The post-recession marketplace differs in so many ways to what went before, yet organisations the world around are still approaching business in the same way and wondering why they aren’t getting results. 

Their slowness in adapting is often due to their habitual reliance on processes and infrastructure, which in some ways explains the success of those few start-ups with a clean sheet of paper and the understanding to get it right, but it takes real skills and experience to change a business on the move, so its ironic that just when you need the best brains on the job so many businesses are dumbing down.

Organisations world-wide are recognising that until the recession changed the rules businesses that were “average” could still earn a living and realising that efficiency is the difference between success and failure.  Now its game on, of course.  Average doesn’t cut-it anymore, we are talking fine degrees of excellence separating the movers and shakers from the has-beens.

Sadly, a lot of misguided managers are confusing efficiency with cost-cutting and employing managers with little or no experience and limited skill on the cheap.  It doesn’t work of course, because to succeed in business these days requires the best and the smartest and the cracks are very much in evidence.  I recently encountered a major global concern where the senior management were frustrated that they weren’t getting, what they considered a reasonable return on their marketing investment.  It was easy to see why.  The wastage was apocalyptic – they talked about integration (the only way any business is going to achieve the necessary efficiency) but didn’t understand it, nor implement even the basics and they had a department called “Propositions” whose brief it was to come up with a continuous stream of short-term tactical promotions that were so short they never had a chance to get up a head of steam and were just confusing their prospects.  To make matters worse, the focus on proliferation of ideas inevitably meant standards were sacrificed.  All they needed was one “Big Idea” and what they were doing was throwing half-arsed ideas around like confetti.

Behaviour like this can only be a product of inexperience and limited skills, but the business I mentioned are by no means alone, this is a worrying trend.  The businesses that I see succeeding right now have limited numbers of really smart people with the skills and experience to contribute across the business.  Structures involve everyone having clearly defined responsibilities, while appropriate culture and practices empower capable managers and employees to contribute in areas of the business beyond their remit.  This way you make the most of your resources and the gaps in the skills and experience can be covered by bringing in consultants as and when they’re needed.

Of course, while small businesses have the luxury of starting with a clean sheet, larger concerns will struggle to adapt existing structures and practices, but that’s not an excuse to do nothing and it’s certainly not going to be resolved by anything other than the best, most experienced and highly skilled marketers.  The decision to dumb-down by recruiting on the cheap is a false economy and the sooner businesses that are going this way recognise this and reverse the process the more likely they are to survive the next few years.

Are you running a business or pursuing a hobby?

I realise that TV shows like Mary Queen of Shops, Country House Rescue and my favourite (if only because I could watch Alex Polizzi doing anything all day)  The Hotel Inspector, despite being formulaic and often contrived are the current entertainment of choice, but what I’m really waiting for is a series of “the ones that got away”.

I’m just itching to see the cases that sent the celeb consultants screaming out of the door, if only because I need the reassurance of knowing for sure it’s not just me who occasionally encounters a hopeless case that simply won’t be helped, or for which there is just no hope.

I’m currently going through that process of mental double-checking every option explored or unexplored that I guess every business consultant goes through before declaring a “patient” DOA.  My nemesis has proved to be a small advertising agency with a £1.5million turnover and accumulating losses that came to me at the beginning of the year.

I believe there is a solution to every business problem and the biggest obstacle to success, as in this case, is usually prejudice, laziness or obstinacy of top management, who despite consistent failure, insist on perpetuating the same model or set of practices.  Who was it who said “Insanity is repeating the same thing and expecting a different outcome”? What is really frustrating about this case is that the solution was pretty obvious.

The people at this agency are getting on in years and looking for an exit that they quickly discovered didn’t exist.  Their stated losses were modest enough, but when I took a closer look I discovered that the three partners, who were independently wealthy, weren’t paying themselves a salary, which made the real picture rather more of a nightmare.  Strangely, this isn’t the first time I have come across a business where owners were not paying themselves and been forced to point out that they were not a business (which makes money), but a hobby (which burns it)

Working as I often do with marketing services firms I always start with the perspective that whatever discipline they may lead with, a marketing services firm is a consultancy.  A position which carries with it two clear responsibilities.  The first is that you must know more about your subject than your clients do.  This may sound obvious, but I often find client/agency relationships that are a bit like the blind leading the blind.  Assuming you qualify on the first point you should be advising your client not taking instruction, otherwise there is no reason for your existence.

Explanations for the failure of this business were turning up under every stone I turned:

  • The principal of this business told me with pride that he had never in his life stepped foot in any other advertising agency and didn’t know what they did or how they worked.
  • In fact they had never conducted a competitive review and were oblivious to who their competitors were or what they were offering.
  • Neither had they undertaken a client review.
  • None of the employees had worked in other marketing services firms either, so their “training” had all been at the hands of their agency principal.  Consequently their perspective was as narrow as the business.
  • In an era where integrated marketing is accepted as essential this agency operated in a very narrow field indeed.  All they offered was local press advertising!  Account handlers positively resisted the idea of offering additional comms, probably because they didn’t know anything about them.
  • The business operated on the commission model where, as an NPA recognised agency (remember those?) they received a 15% commission payment from publishers, which they used to pay for the design and artwork they provided.  I don’t know of another agency that still operates this system, simply because it doesn’t work.  For one thing any agency, regardless of “recognition” gets 15% discount from publishers these days and for another, 15% of the space cost is rarely enough to cover the cost of design and production when the majority of the space you are dealing with is in local newspapers.
  • They “sold” advertising space rather than advised on media strategy and account handlers were paid on commission, just like a media sales rep.  They also did pretty much what their clients asked if it meant selling some space.
  • Senior management had no contact with clients and I was refused access to them because the account handlers wouldn’t allow it!!!  Work that one out!
  • Their in-house management system, including job-bag management and invoicing was all done BY HAND!  Yes, you read that right.  What’s more, they were adamant that this was better than a computerised system.  I haven’t seen that much paper since Wiggins Teape was a client of mine!

The list goes on, but you get the idea.  However, without giving too much away, after speaking to local businesses, business networks, competitors, local media and other marketing services providers, I identified an opportunity for my client to create a model that catered for small businesses and even outlined a plan for growing the business nationally.  This was obviously going to take the founders out of their comfort zone, but they weren’t planning on being around for long, so that was hardly the point.  My job was to make their business attractive to potential investors.

I wasn’t entirely surprised though, when the owners decided not to adopt my strategy.  It had become clear to me early on that they weren’t removing themselves from the situation.  Comments like “But we like the business as it is” and “What we really want is someone to come in with a few new clients” were commonplace, despite me pointing out that the business was losing significant sums mainly because there aren’t any clients left for whom the agency’s offer was relevent.

So, this is one for the “ones that got away” file.  A fruitless exercise, but maybe not a waste of my time because its always good to have an insight into markets and in this case I have awoken to an opportunity that some other small agency might make work.  It also reinforces my belief that businesses fail, largely because they deserve to and that a great many small businesses should start by deciding whether they are running a business or pursuing a hobby.

In successful companies employees dance on tables

You don’t need me to tell you, its tough out there.  Many businesses that I come across are struggling to adjust to the new rules of business and a few are still realising that many of the old ways of running a business simply don’t work anymore, but, old habits die hard.

I’m seeing a disappointing return to purely tactical focus and its hard to persuade the companies heading in this direction and whose priority is to pay this month’s wage bill, that  it’s a dead-end street.  A still more worrying trend I am witnessing though is towards whip-cracking.  Much as I sympathise with the desperation of managers who simply don’t understand why the approaches they have used successfully for years to build or run a business don’t work in the era of new model marketing, flogging your staff is the desperate last twitch of management that has already failed.  High-pressure tactics like this are doomed to failure in both the long and the short-term.

I overheard a conversation last week where a middle manager was bemoaning the loss of the “good old days”.  “I remember …” he said “… the days when, if I was out of the office for a day, I’d return to find my stuff all pushed to one end of my desk because someone had been dancing on it!”.  Extreme perhaps, but there are offices throughout England where the atmosphere is so dour and depressing that its hard to imagine that this kind of thing once happened in successful businesses.

My mind goes back to a quote by Tom Peters in one of his early presentation where he begged business leaders to ask themselves if there was a spring in their employees’ step as they walked across the parking lot from their car to the office each morning, saying “If there isn’t, it’s your fault!”.  His overarching point being that unless employees are happy and enthusiastic about their work, your business will fail.

How many organisations, who today are battling to put together a business strategy that works under the new rules, are paying attention to the absolutely vital element of employee engagement?  Without the backing and buy-in of employees, no business will stand a chance of delivering its brand promise, and when you fail at that you’ve just failed!

For those tempted to respond with “… but we never did any of this stuff before”, I’ll underline what I have said earlier and many times before – If you got away with this omission in the past, it was only because the competition (despite what you may have thought then) wasn’t that tough.  Now its “game on” and there’s no room for slack.  No business can afford this level of inefficiency and, believe me, trying to deliver a promise without having first secured the committment of your employees is inefficient in the extreme.

If you think its par for the course for managers to be hated by employees, forget it!  If you confuse respect for you as a manager with distant or non-existing relationships with your staff you need to take a reality check.  Successful businesses have always had figureheads who employees are happy to stand behind – Richard Branson, Bill Muirhead, Maurice and Charles Saatchi, Stelios Haji-Ioannou, Steve Jobs … I could make a long list, but you get the idea.  Developing and leveraging relationships like these are all part of the internal marketing task.  Don’t side-step the issue.  These internal “brandships” are the key to the “brandships” you have with customers and that’s what drives your business.  When you need all the help you can get to keep afloat, the last thing you should do is abandon your internal relationship-building, so double-check your marketing strategy to ensure you are doing all you can to get your employees dancing on the tables!

Brand stewardship – what’s it mean to you?

Last week I was put on the spot when someone asked me for my views on “brand stewardship”. Apart from the fact that its like asking for my view on world peace – I could either just say “I’m in favour of it” or talk for three hours -  the term “brand stewardship” poses a question in itself.  I mean what is it?  What’s the difference between “stewardship” and “management” or “development” and, given that anything to do with a brand touches on every aspect of a business, where should I start (or end for that matter)?

Let’s begin with nomenclature.  My guess is that someone, somewhere, at some time in the past, came up with the “stewardship” concept in order to accommodate the fact that the closest we can ever get to owning a brand is in the role of minder.  But why not “management”?  I assume that this must be based on the belief that “management” sounds a bit too formal and structured for something that is very human and organic.  So far, even though I have a loathing of the terminology that marketing people think up to make themselves appear smart, but actually just confuses everybody, I can live with all of this and if I’m right, I guess I understand the question and whether you call it stewardship, management or development it’s all about caring for a brand.  I’m going to assume that a brand steward is like the steward of a golf club – he’s there to make sure processes are adhered to and everything is kept in shape but he/she doesn’t have an executive role. So, let me try to summarise my views on “brand stewardship”.

I must have explained my understanding of what a brand is hundreds of times, but to this day defining “brand” even among the “marketers” who participate, remains a critical component of most of my workshops and seminars.  Such are the vagaries and inconsistencies within the marketing business.  I view brands as communities, which, like any other is really just a group of people with something (or things) in common.  A large part of this is values and beliefs. Some members of a brand community create a product or services that reflect these beliefs and values and others buy and use them.

People buy BMW’s because Brandenbergischen Motorenwerke belive in things like quality, engineering excellence and innovation and the cars and motorcycles they produce are manifestations of that.  If you need a car and  these things are important to you, its logical that you’ll feel comfortable in the BMW community.  Similarly, Apple is all about innovation and style, so if these subjects are important to you, you’ll probably own a Mac., i-Phone or i-Pad.

These brands and others have taken the time and trouble to drive awareness of what they stand for and as a result the brands themselves have become icons for a clearly defined set of values – you have YUPPIES driving BMWs and then there’s “white van man”.  Provided the reality measures up to the promise you’ll have the reassurance of knowing what to expect from a product wearing a familiar label.  It works the other way too.  Owning a BMW or a Mac is a badge of belonging to a community – a symbol of your beliefs – and because, as Maslow revealed, most of us are insecure, sales of many products are driven by people who have a need to wear a badge denoting our belonging to a group.  Why else would we wear clothing large areas of which are taken up with advertisements for their manufacturers?

However, this is a bit simplistic.  Few people, for instance, will find a single brand community that represents everything they stand for so most of us combine a portfolio of brands to represent different aspects of our belief system.  If you think of a brand community as a residential community you’ll recognise that you choose to live in a place because it is “your kind of place” but because the brand thing is not exclusive, when you move in you bring the trappings of your other communities with you.  In this way, while joining the community may broaden your horizons, at the same time, to some extent, you’ll enrich the community with the stuff you bring with you.  That explains why brand communities are constantly changing.

All truly great brands are like Marmite. However broad and diversified your brand community may be you are never going to appeal to everyone, and you shouldn’t want to.  Brands with broad appeal are inherently weak because, along with the need to belong we also have a need to express our individuality.  That’s where quirky niche brands play their part in life’s rich tapestry.  A strong brand is normally vivid or distinctive and while stark differentiation like this means it won’t be to everyone’s taste, distinctive brands will foster deep relationships with community members (I call these “Brandships”) and strong loyalty.  These factors are the keys to sales, profit and longevity.

Difference is very often synonymous with newness.  Its relatively easy to be different when you are the new kid on the block, but the success that your newness drives will take you ever closer to becoming “the establishment”.  The more successful you become the greater the challenge of maintaining your difference becomes.  A successful brand will recognise that it is the difference of the products it makes rather than the products themselves that is responsible for their success and as their products become familiar and competitors bring look-alikes to market, they’ll find new ways of representing “difference”, just as Apple have done by constantly changing their products and introducing radical new ideas.  Of course, some new products and ideas will fail, but failure is good because it is a product of innovation, change, experimentation.  While longevity can be a valuable and reassuring asset it is important to recognise that having been around for a long time may not count for much if you’ve not changed anything about your business in all that time.

Brand stewardship in many ways is just the same as any kind of management or indeed parenthood.  Its mostly about facilitation, providing the scope, tools and resources and opening the doors to opportunity, guiding where necessary, but avoiding imposing your own values or rules on your charge.  Its about providing opportunities for discourse, listening to what your members are saying both to you and each other, providing what they need to do the things they want to do (Which also means predicting what they will need in the future), offering up suggestions and being around to fix things that go wrong.  In other words, providing access, introducing communications like on-line or social networking, fuelling and being involved in discussion, collecting insights and data, analysing it and developing products and services that because of all of this you can be confident your community will welcome and generally policing.

In order to do all of this you first of all have to be absolutely clear what the brand and its community is all about – its that values and beliefs thing again – and to do this you’ll need a methodology to help you condense, what is a complex thing into as simple a form as possible.  My Brand Discovery programme introduces such methodology and using it any business can create an eleven-element Brand Model that will sum up their brand.  But that’s just the beginning.  You then have to apply it to your business, making sure that the actions you take on every level of the organisation reflect and support the essence of your brand.  That will take a brand Steward into every corner of your business where he/she will influence pretty well everything that is done.  This can be a risky job in organisations that don’t already have a team-playing culture, which is why Brand Discovery also provides an ongoing management system that engages everyone in the organisation, gives them the tools they need to ensure that their decisions and actions are aligned to the brand promise and ensuring they are fully involved in the process of keeping your brand alive.

Good brand stewardship drives things like Cupidtino the new dating service for Apple users, Saturn’s annual owners factory tour, Yeti bikes’ bashes, Harley Davidson’s HOG chapters and many other different elements of the communities of discerning brands around the world.  Good brand stewardship is the reason why innovative organisations innovate and efficient businesses are efficient, but, as I said earlier, it’s a very big subject and this is a very simple answer.  If you want the whole nine-yards we’ll need a much longer discussion.

Blue may be the new green, but does it suit your business?

So, the debate is pretty well done and dusted – the Green movement is dead. A victim of the same monarchical culture that has buried so many other great ideas and business over the years.  Adam Werbach pointed all this out to us in his speech “Eulogy for the Green Movement” at the Commonwealth Institute in San Francisco way back in 2004.  The mistake he made then was not to offer an alternative and as a result he was vilified by old Greenies, the press and a bunch of other people with no imagination or brains to work it out for themselves.  As he said, people don’t like being called “dead”!  So, he returned to the same venue in 2009 with the missing pieces, which he has called “The Birth of Blue“. Yes, without a doubt, Blue is the new Green, so start adapting your wardrobe.

In fact, Blue isn’t anything new.  Just as the demise of Green followed the familiar path beaten by Communism, a few religions and other movements that relied on compliance under threat rather than a voluntary embrace.  Adam isn’t alone in what has done, but where he scores the bonus is in introducing an imaginative and practical solution, in this case, by adapting a proven approach to a different problem.  I say proven with the certainly of first-hand knowledge, because along with all the other initiatives, cultures and institutions that have successfully adopted this kind of strategy, I have been following it for years with my programme of brand transformation that I call Brand Discovery.

History couldn’t possibly give us more conclusive proof that a culture based on strict rules will fail, yet its not surprising that governments worldwide have adopted a heavy-handed approach to getting us all in line behind the sustainability thing.  When you throw old ladies in jail for putting paper in her rubbish, or stick tracking devices and chips in wheely-bins you really can’t expect anything, but resistance from folks.  The same applies to any community, brand or organisation.  If you make a community welcoming, comfortable and rewarding enough people will want to be a part of it.  Conversely, if you want to drive people away from a place you make it threatening and unpleasant.  Maybe if we gave less thought to prisoner’s rights and conditions incarceration might represent more of a disincentive to criminals?  However, I digress.

Green failed because it didn’t welcome people to its community and brands fail for the same reason.  What constitutes “welcoming” is another discussion and will vary from one brand or community to another, but what I want to do now is focus on the process involved. Its simple really.  You firstly need to lay out all the facts and associated issues in a clear and unbiased way (something that governments just don’t seem capable of).  You then fuel debate and discussion and LISTEN (something that few organisations of any kind find natural). People will work out their own relationships with the problem or issue at hand and if you really are listening, you’ll discover that they are writing your strategy for you.

Sustainability, affects us all.  It influences communication, travel, jobs, in fact pretty well everything in everybody’s life.  As our schoolkids are learing (and these future customers are way ahead of us on this see Graeme Codrington’s Hanna’s Rules) nobody can avoid it, so its really just a matter of helping people understand how it affects them individually.  Then you can start to offer them suggestions of things that they can do to help, if not themselves, their kids, avoid a future that’s far less inviting than that which we have today.

Brand Discovery encourages brand stakeholders to nominate things that they can each do to ensure that they are contributing to a bigger shared objective – the delivery of a brand promise.  Blue takes the same approach by asking people to nominate a DOT – Do One Thing – that will bring them closer to living a sustainable life.  What Blue also realises is that entire national populations are too large to work with successfully, so it relies on dividing nations into smaller work-groups.  They, cleverly chose businesses … large ones.  Their first candidate was Wal-mart, a community of almost two-million employees, not to mention partners and suppliers (I’ve visited countries with smaller populations!) where the approach has proven to be a great success.  More including Morrisons and Sainsbury’s in the UK are following their lead.

The issue isn’t going to disappear by itself and the emerging generations of customers and consumers place sustainable living far higher on their list of priorities than we or our forbears have so its not difficult to see the attraction for a corporation of engaging in sustainability.  In fact, businesses that don’t embrace the cause are going to suffer big-time in the future.

However, if you think it’s just a case of flying a sustainability flag outside your corporate HQ you are wrong.  Apart from their understanding of the importance of sustainability, emerging consumers have inherited a realisation from our generation and they just mistrust pretty well anything that the corporate world tells them, so you are seriously going to have to walk the talk.  What we are talking about here represents a significant change for most organisations.  You are going to need a strategy and there are few organisations around with the perspective and in-house resources to tackle this alone, but before you even find your partner to help you with this you need to understand that blue really is your colour and be ready to trust in your chosen Gok Wan.

In the coming months I will be working on this with my clients, testing out, ideas, introducing initiatives and all the time doing all I can to live sustainably.  Next week I’m off to Marketing Week Live in London and, as I try always to do, I’ll be minimising my carbon footprint by travelling by train.  I’ll be tweeting as I go and hopefully producing a bit of audio on Twaud.io or Cinch.com from the show.  Among the questions I’ll be asking of the people I meet there will be how their organisations are rising to this challenge.  So follow me on Twitter @thefulltweet and make your own contribution.

Vuvuzela, diversity and what it could mean to your business

I have heard a lot of bellowing this week about the vuvuzela and while I can’t help wondering if people would have noticed it at all if the England team were performing better, these objections do carry a whiff of xenophobia.  These instruments originated as the horns of wild animals and their tin successors have been a feature of South African celebration for years before the mass produced plastic version we have seen (and heard) this week came on the scene. Why can’t folks just celebrate the richness of diverse cultures?  Until we do, I can’t help thinking that we may be missing out on a few business opportunities.

The world is shrinking.  The Internet, transport and popular media have seen to that and if any of us are going to be able to afford to fly anywhere in the coming years, it is ultimately destined to become one big melting pot.  For years I have been building project teams, virtual and real, comprising all kinds of people with all kinds of insights and attitudes from all around the world.  There’s no doubt about it that Western experts have contributed disproportionately to the work I have done in the Middle East and the developing markets of Central and Eastern Europe, but that doesn’t mean the traffic has been all one-way.  I’ve found the contributions of locals to be invaluable.  In countries where budgets are tight and social conditions are such that people habitually fix rather than replace things I discovered unmatched determination to deliver complex solutions with the most basic materials and equipment and people who will learn new technical skills on-the-job, sitting up all night with text books when students in the UK would be falling in and out of pubs.

I’ve also learned more about sustainability that I thought possible from people like my Central European wife who was brought up in an education and social system that lived in far-closer harmony with the land that few Westerners of my generation have.  I have a son of thirty, who, brought up entirely in the West, lives in a disposable world, and a daughter of eight, most of whose life has been spent in Prague and to me the contrasts are stark.  My daughter takes my son walking in the forest, explains the medicinal properties of wild flowers and shows him where the wild edible mushrooms, strawberries and garlic hide, just like her mother and grandmother.  She’s keen to teach him to ski too, the expensive Western pastime that is cheap and accessible to Central Europeans and at which she’s been expert since she was three years old.  In return, he’s introduced her to all the cool things on the internet and contributed greatly to her fearlessness of technology.  Oh, and he’s taught her a few rude words that have horrified her teachers and fascinated the chums in her school English class in Prague (Did you know there are no really rude words in the Czech language)!  So much for cultural exchange!

Together they have achieved a synergy and a balance that has benefited them both.  Businesses in these developing markets have been in no position to resist the infiltration of skills and concepts and they have undoubtedly all benefitted as a result.  I can’t help wondering if a few of the Western organisations I have come across over the years wouldn’t be much better off now had they chosen to embrace and learn from other cultures rather than look for opportunities to oppress them or belittle their differences.

I was talking to a recruiter last week who told me that because there are so many candidates for jobs these days, hirers are increasingly selecting only their look-alikes for interview.  Now we all know that every business is only as good as its next big idea, that innovation is a product of diversity in every area and at every level of the organisation and that with all the rules of business having dramatically changed in the last few months, innovation is more critical than ever to the survival of any business.  So, as recession lifts and hiring starts again, maybe we are in danger of rebuilding our businesses to a model that excludes the very thing our survival depends on?

So while the South African people are largely welcoming their visitors from around the world and benefitting in no small measure from what the influx is bringing, you might like to give a thought to your own reaction to the vuvuzela.  If your knee-jerk reaction is to jump on the ban the vuvuzela bandwagon you should ask yourself if you take this attitude to work with you and if so whether its working against the success of your business.  It’s not just a matter of embracing other ethnic types and different cultures, but appreciating different perspectives and being open to the alternatives that these can offer you both at work and at home.

The things your mother doesn’t tell you

There are a suprising number of quite sizeable businesses out there that, when they are under-performing call in a consultant to tell them that its anybody’s fault but theirs.  I’ve always told potential clients “don’t call me if all you want to hear is how great you are”.  For one thing life ain’t like that and for another that isn’t my job, go ask your Mother!

I’m quite clear about my business role.  I’ll introduce you to the good and bad in your business, help you work out what you need to do to fix the bad and make the good even better. If you don’t want to put the work in, I’ll settle, with a little frustration (because I hate to see anything that could be fixed, not working) for watching your business go down with all hands, but if you are up for the challenge I’ll be there with you every step of the way as you put your plan into action.

The business environment is highly geared.  If you are not focused on being the best in your class, history leaves us in no doubt that you are on a short road to nowhere.  Sadly I’ve encountered two businesses in the last couple of weeks who think they can beat the odds.  Of course, they won’t.

The first was a sports equipment challenger brand with an inflated opinion of itself and the second a digital content company that behaved like a Christian Scientist with appendicitis – what they needed to do to fix their problem was against their religion.

The sports company was like a lot of mid-sized businesses stuck in their original, small business mindset.  I organised a “meet the end-user day” where sporty people tested their products, wrote reviews and entered them in a prize draw.  The feedback was clear.  The products were far from cutting edge, weren’t exciting, weren’t what customers really wanted (although at the right price they might consider some of them) and the prices were too high.  The company’s principals decided the customers didn’t know what they were talking about.  At the price points that customers were talking about the business would operate at a loss.  My conclusion: this isn’t a business, it’s a hobby!

The content company was one of a group of businesses that had been acquired over time by a larger group.  They are good at what they do, but are finding themselves in the same position as a lot of other marketing services businesses in recent years – doing a lot of one-off jobs on low margins for medium-sized businesses and not making a lot of money out of it.  Although for many marketing services firms much can be achieved by the introduction of a decent management information system, what this lot need is to get out of the commodity-supplier rut, which, for a marketing services firm, means putting their offer in a  broader context, leading with and owning their clients’ strategy.  These days, positioning your marketing services business as a production facility is like putting your own head in the noose.  The problem for this business was that other businesses in the group owned the strategic mantle and strategy was seen as “out of bounds”.  A case of woolly thinking, maybe both at group and business unit level, which until that was sorted out was going to continue to condemn them to the treadmill – a lot of hard work for little return.

SMEs that I encounter often don’t deserve to be anything more.  The confusion between hobby and business mind-set is a common malaise, but, more fundamentally, the people running these businesses frequently aren’t being honest with themselves.  A consultant like me isn’t in the business of being destructive, but we are there to  deliver home truths.  If you can’t take it on the chin then perhaps you shouldn’t be in business.  The important thing though is for consultants to always present the reality with a clear and practical solution to the problems it represents.  If the solution is still rejected, we sadly have to accept that these organisations are the runts in Britain’s new business litter.

e-tailing has it Made.

If you ever doubted that there is a future for retailing on-line there’s a new kid on the block that might just convince you that retail clicks!

The thing that I have always enjoyed most about retailing is the involvement that exists in the “brandships” between stores and customers.  Retailers have, often inadvertently it must be said, always been avid brand builders and the fortunes of the most successful are set in a history of establishing and building relationships with customers that pre-dates the acronym CRM, which is now on everyone’s lips.

I have always felt that retail was the first sector to recognise the element of community in brand-building, but when you take the store or meeting-place out of the equation there’s always a danger that you could be throwing the baby out with the bath water.  Not if Made.com have anything to do with it!

This isn’t a first by any means, but I really like the way they have used the scope of on-line to involve their customers.  This is real brand-building (in other words community).  Its a limited range, but I see no reason why that shouldn’t expand, which can only be good.  Customers, get a real sense of involvement in design and there’s a pioneering spirit about the individuality of the range that provides the essential community ingredient that is further enhanced by the opportunity customers have to vote for designs.  The people at Made.com clearly don’t need me to tell them where the opportunities lie, they are screaming at us all over this concept.  I particularly like the potential for a clicks and mortar model that’s similar to one I have in a bottom drawer right now.

Of course e-tailing isn’t the panacea that a lot of its evangelists make it out to be.  I’ve raised issues of customer service overheads in other posts and I’ll be interested to see how this essential element is handled by Made as time goes on, but Made is an idea, and we can’t have too many of them in the new economy.  Ideas are what will set the world spinning again and these people may just have it made!

Today’s great, untapped opportunity for marketing services firms

I have just been reading a report of a speech by agency CEO Brian Weiner that was written by Jodi Harris for iMedia Connection.  It seems that Brian like so many in our industry have identified the problem facing our sector, but is his remedy correct?  I’ll leave you to decide.  For my part, I firmly belive that the model for the agency of the future is well established already. I started my Full Effect Company twenty years ago and today it exactly matches the needs of today’s clients.

We focus on “integrated marketing” and don’t, as so many who use the term do, limit our horizons to “integrated communications” and call it “marketing” – that’s just sellotape marketing.

We place the brand at the centre of the organisation, adapting core communications skills to build powerful brand communities, comprising lasting customer relationships that massively improve efficiency, which is the single thing that separates commercial success and failure.

We are not only media neutral, but address all the issues that influence the success of an organisation in a single end-to-end strategy, because that’s the only sensible way to work. Marketing services firms with traditional structures and practices can’t do this.

We have a defined way of working that is nothing like any agency I have come across and a network of independent experts covering the total range of marketing (not mere marketing communications because that just doesn’t work) disciplines who come together in infinite permutations to deliver the appropriate formula. Traditional agency structures can’t do this and are forced to deliver compromised solutions.

Even from the modest sample of comments on the iMedia piece, it seems that I am not the only one to have cracked this, although I am probably one of the early movers and today I advise agencies around the world as they develop their own models and take them to market. The millions of dollars in incremental billings that my agency clients have won as a result are testament to Full Effect Marketing and the undoubted opportunities that are emerging in the new world economy. So I certainly agree with Brian Weiner on one point – there are tremendous opportunities right now for marketing services firms that “get it” …   largely because there are so  many that don’t!