Category Archives: management

Optimism, the power of positive thought and the future of your business

I’m an optimist.  I recognised this many years ago and I’ve been reminded of the fact daily ever since.  I look around me, see and hear the responses others have to situations that we are all facing and its obvious that my responses are different.  I don’t know why this should be and and I’m not about to start trying to understand it, but what I do know is that it impacts in many ways on my life and never more so than right now.

With the economies of just about every country now in turmoil every business, anywhere in the world is having to make significant changes.  If you have followed my work for any length of time, you’ll have probably picked up that I like change.  Change is good, same is bad.  You are only as good as your NEXT big idea.  I can’t stand companies who strike it lucky and then settle into the rut of replicating what they did time and time again to milk it for all its worth.  I don’t like them because there is an inevitable consequence to this approach – failure.  The world moves on, customer needs change, attitudes swing, everything is in a state of flux.  It is a very lucky business that has a product that will be equally successful through time with no change at all and right now I can’t even think of one.

I’ve been inside more companies over the years than I could even list and it has become clear to me that successful companies all have a spirit of optimism.  Talk to their employees and their chatter is about HOW they are going to achieve things not WHETHER they can achieve them and that’s simply because they don’t consider for one minute that they won’t get there.  And why should they?  Anything is achievable.  We are our own limitations.

I have never been far away from sports of one kind or another and the great sporting enlightenment of the last few decades has been sports psychology.  At an elite level most athletes have equal capabilities.  What separates them is most often belief in their ability to succeed.  That’s where visualisation plays its part.  Most athletes these days will sit and visualise their success, sometimes for hours.  This conditions their brain so that it doesn’t consider failure as an option and that in turn enables them to perform to their full potential.  It works, but if you don’t believe me consider this.  Within twelve months of Roger Banister achieving the one-minute mile, 37 other runners did the same thing.  What caused this surge of performance after years of believing it was impossible?  The belief that it could be done!  I’ve seen sportspeople who habitually performed below their skill level, transformed.  What’s more, once they realise it’s working it becomes a self-perpetuating cycle – confidence increases, performance increases, success increases, confidence increases etc…   It also works with sportspeople who are not in the elite group, even weekend warriors.

Anyway, back to business and why its clear to me which companies are going to make the transition that will earn them a place in the new world market.

I hear organisations all over the world acknowledging that they have to change to survive, but very few actually end up making the changes that are necessary.  The reason for this is a combination of comfort with the status quo and fear of failure.  Firstly, these organisations don’t have the change culture that I mentioned earlier (You are only as good as your NEXT big idea) so it’s not their habit to constantly look for improvements or changes. Secondly, they are, both individually as employees and on a corporate level terrified of doing something that will go wrong.

This fear is based on the failure to recognise that we are all capable of succeeding at anything.  Anything is possible it’s just a matter of how badly you want it.  If one company can innovate then you can.  It’s just a matter of self-belief.  My advice is, instead of focusing on the potential for failure, turn your attention to the risk of failing to exploit an opportunity, because that’s all that matters.

Attitude change like this has to start at the top.  If you are a manager who accepts failure as inevitable or who doesn’t assume success, you need to pay a visit to a motivator or business psychologist, or you could quit of course if you think you’ll never make the change! (think about that comment, it’s deep)  If you choose to re-focus your mind your next step has to be to eliminate all the doubters in your organisation.  You can do this either by firing or re-training them.  The latter is the best option of course, but you are going to have to focus a great deal of attention on internal marketing to pull it off.

Once you have introduced your organisation to positive thinking you’ll be surprised what you can achieve.  Someone asked one of my contractors this week how sure they were that they would deliver a particular task.  “Absolutely” was the unhesitating reply, but the questioner wasn’t convinced.  “How can you be so certain?” came the response, to which my contractor replied “Anything can be done, its just a matter of how much time or money or effort you put behind it”.  That task would never have been attempted until we came on the scene, but they’ll do it now and it will work and it will improve their business performance and I know that because my contractor recognises that anything is achievable.  What’s more, like the cycle of positive thought I referred to earlier, the achievement will fuel further, bigger achievements for the company concerned.

It definitely pays to be an optimist.

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.

Your future is bright young things. So invest in your brand community.

I hate to be repetitive, but for the second time this week I find myself shouting “hear, hear!” to a piece by Graeme Codrington.  This time he’s talking on the subject of employee relations.  In particular the challenge of holding on to the bright young things that represent the future for all of us.  But, while I agree with what Graeme says, I see this from another perspective – the perspective of “brand community”.

Graeme, as usual, is right (don’t you just hate folks who are always right?).  Too few organisations focus on creating an environment where employees feel they really belong – a community.  In this article he talks about the old days of outback mining companies that established towns and provided all the facilities their employees needed to live with their families, because they knew that without this infrastructure they simply wouldn’t have any employees.  He also points to the fact that initiatives like these were early victims of the bean-counters, looking through distorted spectacles for ways of squeezing more profit from a business.

So, what has an outback mining community to do with a modern business?  Well, it’s not as different as you may think because whether they are rock-face workers or the smart graduates that an international business needs to build its future on, when there’s a shortage, there’s a shortage, and belive me, there are definitely not enough bright young things to go around.  If you doubt that, just give a thought to the last time you marvelled at some meaningless procedure a business that you were dealing with insisted on taking you through – smart people don’t waste your time (or theirs) with stuff like this!

Graeme talks about investing in the things that make work a great place to be.  A while back, I visited an organisation whose offices were so much better and more comfortable that the homes where the employees lived, that they socialised there too.  In fact it was sometimes difficult to persuade them to go home at all!  However, it isn’t quite as simple as office bars, sofas and a few pot-plants.  My real interest in this subject comes from my passion for brands and my belief that while, as Graeme says, there’s a cost involved in making yourself the employer of choice for smart people, it doesn’t have to be as big an investment as many might think.  I see this as a part of the marketing function and in most organisations there a budget for this and, if you do it right, it is guaranteed to bring a handsome reward.  What’s more I know that with the technology we have at our fingertips today, you can measure anything and that includes the return you get on investment in your “brand community”, so the proof that this kind of investment pays-back is there.

In fact, one of the founding principles of my Full Effect Marketing is that a small proportion of your total marketing investment re-directed to internal marketing will bring a disproportionately high return.  And, have no doubt, what we are talking about here is “marketing”; specifically building a brand community where all stakeholders (investors, partners, suppliers, customers AND employees) feel a sense of belonging and ownership.  It works like this:  great brand community = happy and dedicated employees = consistency over time because they stick around = improved return on training investment = better decisions = smarter (and more efficient) execution = happy customers = job satisfaction … you get the idea.  Its called “Brandship” and yes, you have individual Brandships with every one of your “stakeholders” (I hate the word “stakeholder” too so let’s just talk about “community”).

The chance of you being a lighthouse organisation in the future (or even being around at all, given the competition we are all going to face) is very much based on the desirability of your “Brand Community”, not just for customers, but for employees.  But there’s another aspect to this.  A brand community isn’t something that’s dictated from the boardroom.  Employees aren’t going to respond to a community that YOU think they should like.  It has to be a place where they genuinely feel “at home”.  A place that they have created.  In fact, the organisation doesn’t even own the brand community.  You just get to be caretaker or janitor.  A powerful brand community is a product of and owned by its members so if you want to create the real thing (and I suggest this should be your objective) you are going to have to engage another Full Effect Marketing idea, which is that all your communications should be two-way, because you are only going to get it right by listening.

Who has come across a large organisation where all the employees get a free pair of Replay jeans?  I have, because we did it at Oskar Mobile in the Czech Republic that not only became the world’s most successful third operator ever, but, against awesome odds, were nominated World’s Best Mobile Operator; success that was driven entirely by their brand community.  This and many other initiatives like it were prompted by employees themselves, who also made a movie themselves about what a great place Oskar was to work.  The movie in turn was distributed to recruiters and shown at conferences and job fairs as well as posted in the Internet and as a result they were getting thousands of unsolicited job applications every week.  The original Saatchi & Saatchi was a community that worked and played together and it was this that drove our international growth.  I remember walking into a recently acquired agency in Helsinki and being bombarded with questions from everyone about the people and happenings in our London Charlotte Street offices.  Our London softball team had shirt with “Official softball team of the biggest advertising agency in the world” printed across the back and people in our offices around the world wore it with pride.

This is what I mean when I talk about Brand Communities and it’s why I created my Brand Discovery programme.  Every day the idea of the central role of “brand” in any business is gaining more credence.  If you aren’t focussing on this already you should be.

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.

Keep it fresh – the recipe for restaurant brand success

I was chatting yesterday with a chap who runs a load of restaurants … and I mean A LOAD!  Among the topics of our conversation were the “good old days” when the sophistocated man-about-my-neck-of-the-woods, out to cut a dash, took his “bird” to a Berni Inn.  In those days of course there were, by today’s standards, limited options for the young stud out to impress  – Wimpy, Berni Inns, the local pub where you might get that French delicacy “chicken-in-a-basket”, one of the emerging Chinese restaurants, and independents from Joe’s Caf to the more aspirational, Gino or Carlo’s.

By comparison, today’s aspiring roue is spoilt for choice.  Not only has there been a proliferation of independent eateries of all palates and ethnicities, the number of restaurant chains is enough to set plates spinning and because each one is desperate to establish a point-of-difference, today’s eating experience has become as much an entertainment as the date – especially if you have my luck!

I used to frequent Alastair Little’s restaurant in Frith Street, Soho where the man himself once told me that the average restaurant had a life of around three years, after which you had to reinvent yourself.  These days that rule of thumb at least hasn’t changed.  If you watch Gordon Ramsey’s antics on TV, you’ll know that the key to restaurant success is to devise a unique theme and then exploit it to the full.  This lesson has been adopted by all the big chains since TGI Friday’s, who recognised that while a new restaurant format will always add novelty value to an entertaining theme, for the punter, even the most compelling theme is great for two, or maybe three visits.  After that, unless something changes, you’ll find them asking “so what now?”.  If the answer is “nothing” they’ll be beating a path to the next food entertainment experience.  The “novelty effect” may also compensate for a few deficiencies, which gives you a narrow window of opportunity to iron out those niggly operational issues, but “narrow” is the important word here.  Pretty soon, its back to reality.

What we are talking about here is brand development and I love the restaurant business because it offers one of the clearest demonstrations of the concept of “brand community” and “brandships”, which has been my personal cause celebre for many years.

For a restaurateur this isn’t just a case of introducing new things to the menu, although that plays its part, you have to continually tweak other elements too.  Data management comes into play here as you define your segments and start to manage them.  You’ll have customer-segments, day-segments and seasonal demands that will probably all be heading in different directions out from your central theme and the devices you use to manage your community will be as diverse as these segments.  Starbucks discovered early on that day-segments demand different music and its a no-brainer that restaurant day-segments require different food, but that’s not only to accommodate the traditional meal variations, but different customer types – for instance, pensioners and young moms in the morning and groups of youngsters in the evening.

Its also not enough just to make changes, you have to make sure everyone recognises them.  I was in a chain restaurant recently that had a number of USPs and had introduced new items to its list, but none of them were highlighted.  That’s an ommission no operator can afford to make, but the ways in which you publicise development are as many and varied as your segments.  I don’t belive that Face book and Twitter are the panacea that some marketers suggest they are, but we are talking social networking here and while grannies don’t Tweet much, (unless you squeeze them really hard!) if you have a “youth” segment you can use this medium intelligently to drive awareness of the changes and maintain the freshness of your brand.  Press Relations and grass roots events will play their part in heightening awareness of your brand and its freshness, as will viral, personal appearances, demonstrations and good, old-fashioned advertising and PoS, plus, don’t forget your floor staff – dif’rent folks, dif’rent strokes!

Like any brand community a restaurant brand is a constantly evolving thing with opportunities for maximum customer involvement and engagement at every level that no operator can afford to miss.  Who do you think is making the most of their community?

Britain’s unemployed managers – the solution to SMEs’ problems

I’m back in the UK for a while and, inspired by the tales of the many struggling businesses in my local area, I’m trying to do my thing for SMEs .  I say “trying”, because, as my Granny used to say “You can’t help folks who won’t be helped”.

Most “small businesses” are small because they haven’t got what it takes to be big.  The deficiencies come in many forms and span all areas of business from lack of key skills like financial, operational management and marketing, to just being plain crap at what you do.  In a normal buoyant market there may be hope for even the least capable, but as conditions are now, if you aren’t sharp you won’t get to play.  As I have said before, this is a good thing.  Its the process of natural selection and we should come out of this experience, as a business community, smarter and better equipped.  However, I have my concerns.

Its no disgrace for an SME to lack a few key management skills.  If you are small, you are bound to be wanting in one area or another, its just a matter of where your strengths lie and what you do about your weaknesses that determines your destiny – that’s marketing.  My worries are two-fold.  Firstly, the natural instinct of far too many organisations in recent months has prompted an alarming HR trend and secondly, the support system for SMEs in the UK is failing miserably – and I’m not talking about the banks who seem hell-bent on some wild agenda to bring down the UK SME sector.

The HR trend I refer to is for firms to off-load senior people in pursuit of short-term payroll savings.  Its may seem an obvious quick-fix, but as I thought we all knew already, it brings only very short term benefit and beyond that its nothing more than the beginning of the end.   It affects organisations large and small in the same way, but simply because small businesses are less robust the effect it has on them is more often terminal.  Taking away managers (provided they are worthy of the title) from any organisation is like removing the rudder and the end result is invariably crash and burn.

In a similar way, organisations that think they are being smart by taking the Arsenal FC approach to business – hiring young inexperienced players and attempting to turn them into key strikers – are on a hiding to nothing too.  Inexperienced staff suck up key management time, involving them in micro-management that leaves them unavailable to perform their main leadership and innovation role.  It is also a customer satisfaction and operational efficiency nightmare that in times like these you just can’t afford.

To make matters worse, there’s nowhere for a UK SME that is short of management know-how, to go for help.  Years ago, a UK government initiative saw the foundation of an organisation called Business Link.  Basically, this was a joint-venture between the public and private sectors that was supposed to bring management skills to SMEs through a network of local consultancies.  Now, I have to put my hands up here and say that if I had my way they’d all be closed down and I bet nobody would even notice – apart from the exchequer who would immediately have a shed-load of cash to do something useful with.  Without exception, every SME that I have encountered, that has had any dealing with this bunch have nothing but disdain for them.  From what I have seen and experienced over the years they fail absolutely to operate as a network, they have no understanding of the realities of business and their methods are both outmoded and inflexible.  If ever there was a depository for no-hope graduates, with lots of meaningless qualifications and absolutely no grasp of reality, its Business Link – a typical public sector organisation in fact.  Anyway, rant aside, expecting Business Link to lead your SME out of recession is on a par with expecting Gordon Brown to win a personality contest – It ain’t going to happen!

Against this background I have been trying to get local politicians, government departments and business groups to consider ways of addressing some of these problems.  For example, most of the smart senior managers who have been victims of business cut-backs in recent months are still on the dole.  The managers with the very skills and experience that SMEs need right now are being paid (albeit a pitiful amount) to watch daytime TV and most of them are resigned to this reality for the rest of their lives.  That’s a fact supported by today’s unemployment figures and under-lined by a live phone-in on the BBC’s Radio Five Live this morning.    I approached one of the organisations employed by the Department of Work and Pensions to deliver Back to Work programmes for unemployed managers with the idea of devising a programme that would bring the need and the resource together and taking it to the DWP to seek funding.  It was like trying to raise the dead!  Rather than apply their minds to making something happen their every effort went into thinking of reasons why it wouldn’t work.  Just the kind of positive thinking we need to get us out of this mess!

I asked my local Tory candidate to help me get something going with the DWP and JobCentres, but got no reply.  I even offered free advice to a local trading group and received no reply to that either.  I approached the local paper and an independent employment agency with the idea of running a seminar for local managers of SMEs and neither were interested.

My mailing to a sample one-hundred local businesses offering them a free consultation that could get them thinking in the right direction had no takers and my follow-up calls revealed that they had mostly been approached by Business Link who failed them miserably and once bitten were put off the idea of consultants forever.

Its sad that our SMEs – our commercial future – are stuck like rabbits in a car’s headlights, while Theresa May the Shadow Work and Pensions Secretary and the Employment Minister Jim Knight, who together have solutions to some of these problems in their gift, bitch about minutia and argue out party politics on national radio.  The inability to run a piss-up in a brewery is endemic in our society and clearly, it goes right to the top!  Maybe we should recruit our next government from the ranks of our unemployed managers?  Now there’s a thought!

Are marketing services failing clients?

I don’t agree with Saatchi’s Kevin Roberts on everything, but there’s a big overlap in our thinking and, hey, differences are what prompts innovation and make the world go round, so that’s good.  Yes?

The thing is that on the fundamentals we are on the same page and its always reassuring to know, when, as we marketers do, you are ploughing the lonely innovation furrow, that someone of Kevin’s gravitas agrees with you, at least in part.  That’s why I was delighted to hear him make three key points in an interview in Singapore recently (he probably made many more) that really resounded with me.

  1. The current economic situation is causing far more radical change than most people still realise and it’s going to go on for a year or two yet.  As a result, business leaders are desperate for ideas, but nervous of change, so the ideas that we take to them have to be bigger, better and more than ever before, grounded in sound commercial thinking.
  2. Marketing services businesses (Kevin focusses on Ad. agencies, I’d put brand consultancies up there too but all the other disciplines are failing their clients too) are generally way behind their clients and end users/consumers when it comes to realising what’s happening and responding to it (which, given that we are paid to be thought-leaders, is pretty damning)
  3. Awards are becoming counter-productive.  They are encouraging agency people to entrench in old-thinking.  It’s almost as though given their failure to deliver in the real world, agencies are retreating to a world of mutual admiration inhabited solely by their peers.

Where maybe I differ from Kevin is that I believe that its our job to lead our clients.  Not just to give them great ideas, but to help them fully exploit them.  This requires bigger thinking.  I am trying to go much further than most agencies, by not only coming up with new creative ideas, but having ideas about how business can change and reshape themselves, communicate internally as well as externally and do new things operationally that will enable them to get more out of the ideas.  And I go further than that even, because, as I just said, business leaders are not only desperate for ideas, but nervous of change too, so its my job as a marketer (and if you are a marketer, its your job too) to help them along the way with implementation.  That’s why I spent months working with buyers at a supermarket group to get them to think differently about their role and what they were buying and why I just devoted weeks to convincing a software organisation to take another look at the environment their otherwise great software creates for users, before they take it to market.

Sure its a lot of work, but that’s the game we are in now.  Be sure about that!

Innovate your way through recession

You might be persuaded otherwise by the actions of some organisations, but now is the time to innovate.  And before you respond with the old “we can’t afford it” argument, let me tell you that every piece of evidence proves beyond any doubt that far from not being able to afford innovation, you simply can’t afford not to right now.  If you think the recession hit hard and fast, you ain’t seen nothing yet!  If your organisation is sitting there with its metaphorical head between its knees, you’ll know what I mean when the recession starts to lift and your competitors who have had their thinking hats on for the last months kick your sorry backside!

The trick to innovating in recession is no different to the basic rule in boom times.  In fact its the fundamental of every aspect of all business at any time and if you’ve been on this blog before you’ll know what’s coming next … efficiency!  Efficiency is ultimately the only thing that separates successful organisations from unsuccessful ones and, by and large we are all pretty bad at it.  The thing is that most of the time we can get away with being … so-so.  In recession however you really have walk the talk! Yes, tough markets sort out the men from the boys, the wheat from the chaff and by and large this time around the recession is definitely reducing the number of half-baked businesses.

The starting point for innovating efficiently is the same as the starting point for efficiency in every area of your business – focus, and the kind of focus I am talking about is the kind that comes from having a clearly defined brand encapsulated in a concise and straightforward Brand Model, such as that which I create with my Brand Discovery programme.

Among many other things, a Brand Model gives any organisation the criteria by which to judge the suitability of everything you do and used properly will enable you to prioritise, cut those ideas that aren’t going to support your Brand Promise, help those you decide to run contribute something truly worthwhile to your business and ensure that tactical initiatives have maximum long term value – that’s efficiency!

Over that last few months I have seen an increase in the number of calls  from organisations who are fine-tuning their brands and this is encouraging.  How they go about it though is sometimes a bit of a worry.  I have just spent some time with a national UK set-up that brought in one of the big consulting firms at colossal expense to help them with this and the result was very disappointing.  The consultancy came in, helped them create something approximating a brand model, which itself left a lot to be desired, and then walked away and left them to it.  Sadly this is a common experience.

A lot of folks don’t realise that building a brand model is one thing, but bringing it to life is where the challenge lies.  The model is really just the working drawings.  To turn it into something concrete – and that includes leveraging its capability to generate business-building ideas – means taking a new perspective on your business.  This in itself represents a radical change for some organisations and involves introducing new practices and maintaining a high level of discipline, all while running the day-to-day business as usual.  Its tough and, believe me it rarely works unless you have to have someone dedicated to keeping it all on track.  Some organisations employ their own brand champion, which really should be at board level, because they need to carry that kind of weight within the organisation, but it makes sense for most businesses to bring in consultants and that’s what I do.

On this foundation you can start building your “ideas organisation”.  Canvassing ideas from within your organisation is a campaign in itself, especially if its new to your culture.  You first have to start by reassuring everyone  that regardless of their level or function, their ideas are as likely as anybody’s  to be that golden key to the future of the business .  I once turned an idea from a junior secretary into a successful new business unit for one of my clients and you could do the same.  Believe me the key to a really great future is probably rattling around the head of one of your employees as we speak.

Once you are generating ideas you’ll need a process for selecting them and developing those that show promise.  Your Brand Model will be an immense help in this, but you still have to set out your day-to-day approach.  I find that its useful for a lot of reasons to offer the person who came up with the idea a role in its development – its motivating and it helps them develop new skills.  You have to decide how you want to set up and run your project teams – one for each idea currently in development – at what points you review projects and what criteria you will introduce at each review.  Its also a good idea to have a reporting system that feeds back to your employees, to maintain their interest and commitment to ideation.

When you have an “ideas organisation” culture, the support of your employees and the processes in place to develop the ideas you’ll be generating ideas, assessing their potential and bringing the most promising ones to market more quickly and efficiently that you probably imagine.  You can fine-tune all the elements of your innovation programme as you go, but ultimately you can’t help but be successful.  Remember, ideas are the currency of business and the race is on to emerge from the recession like a bullet from a gun with all the momentum that only new ideas can generate.

The future is definitely grey.

I had an interesting meeting in London last week, with a few people from one of our bigger and better-known global organisations, who, like everybody else right now are looking for ways to stretch their budgets.

I have been saying for years, the difference between successful companies and unsuccessful ones is efficiency – nothing more or less.  Its a matter of what you can do with the resources at your disposal. What’s happened in the last few months to make this issues more critical is, of course, the recession.  Now the race is really hotting up and even the most successful organisations are racing to find ways to maintain or even increase pressure on their competitors while reducing their investment .  In other words everyone is desperate to increase efficiency in every area of their organisation and that puts Full Effect Marketing bang on target.

The people I was talking to were by anybody’s standard successful and their efficiency is probably about as good as it can get using contemporary practices, philosophies and models, but as more and more organisations have discovered recently this just isn’t good enough.  They cited three issues that they are struggling with right now, all of which boiled down to the same thing.

  • Too many short-lived propositions – or as I would express it, campaigns with no legs – so they were wasting time, effort and money setting up and running a continuous stream of short tactical propositions that are going nowhere.
  • Missed opportunities brought about by failing to recognise and plan to exploit all their options ahead of time.  This sometimes means that they have had to hold up launches while forgotten elements were nailed on (with the kind of compromises that you have to expect when this happens), occasionally they effectively plan-out potential that they have missed, so that to reinstate it later means cumbersome and inefficient delivery and also, from time to time they just miss opportunities altogether.
  • Inefficient execution or just failing to engage all the expertise within the organisation early enough to ensure that campaigns are delivered on time with all the Is dotted and Ts crossed.

As they said, no longer can they afford to invest in promotions and propositions that don’t milk investment for all its worth.  If only a few more organisations recognised that.  Their problem is that they were viewing these problems as training deficiencies, when the truth was far more fundamental.

Its a fact that executives in most organisations, like policemen, are much younger than they used to be.  This has its advantages, such as high energy levels and enthusiasm (although I sometimes wonder about this), plus, of course younger managers are usually cheaper to employ and hungry for success, which enables employers to apply the carrot principle with greater success.  However its not all pluses.  There are disadvantages too and the biggest and most significant, as far as the scenario we are talking about here is concerned, is a lack of experience.  While business is becoming more complicated with a full-hand comprising more and far more diverse disciplines, executives, because they are younger, have experienced fewer (simply because they just haven’t had time to acquire more) and as careers develop, the focus seems to be on depth rather than breadth of experience.  This limits both their understanding and their management capability and adds to the reliance many larger organisations (and this one was a case in point) have on processes, the only purpose of which is to overcome experience deficiencies, but, which, in the process, limit scope for free-thought.

The thing about establishing the perspective that allows us to see all the implications and opportunities of an initiative is that its pretty well impossible, to processise.  The vision that enables an executive to see all the opportunities and identify all the departments, specialists and skills that need to be engaged in efficient delivery is simply a product of experience.  So, if you can’t processise this stuff the only option left is to employ people with the experience.  I’m not saying that youth has no place in the modern recruitment strategy, but there’s no getting away from it, if you want to up your game to the kind of level that we all need going forward from today, you need experience too and that means creating a blend of young and older executives and creating a culture in which they can work together, combining everyone’s skills to deliver the solutions a modern business needs.

Its time for us all to deliver our Brand Promise

gordon-brown1So, British parliament is learning about branding?  Or at least one of it’s fundamental principles.  With MP’s expenses becoming the subject of the worst scandal in British Parliamentary history, we should all take heed of the consequences of failing to deliver our promises.

Even in the current financial environment, most cases of poor brand performance and maybe most business failures, can still be attributed to failure to deliver Brand Promise.  Yet, if anything, the incidence of firms that I come across who focus on making their promise, regardless of their ability to deliver it, is increasing.  But in these difficult times this cavalier attitude is a recipe for disaster.  Current financial constraints mean gearing is very high indeed, there’s a hair’s breadth between astounding success and abject failure. If ever there was a time to review your brand and what it stands for, its now.

The position of British parliament has always been one of solid reliability, straightforwardness, behaving as one should.  Much of what is Britishness (or Brand Britain) has been the self-assurance that allowed us to poke fun at other nations whose corrupt governments and politicians made world headlines.  Now the joke is on us, our erstwhile trusted representatives have made us a laughing stock (even among nations that we have held to be fundamentally corrupt) and its no fun!  Now that we all now know for sure that Brand Britain has been a facade and the institution has been rife with self-interest and corrupt practices our management (Parliament) has been shaken to its foundations.

The most lilywhite of PM’s and the institution as a whole now face the daunting task of winning back the trust of voters, who, if last night’s BBC Question Time was anything to go by, are determined to strip the entire institution down to its foundations and start again with an entirely new build.  And who can blame us?  I for one believe that the system of PM’s expenses, should be devised by an independent body, employed by the people, with no input at all from MPs, who should be told what the system is and decide whether they want the job, based on these and other constraints.  At least this would reaffirm our position as the employer in contrast to the belief, apparently common among MPs, that the people are here to do their bidding.  So, how does an MP set about winning our support?

The answer is, of course, the same way that any brand is built and the first step in this process is to establish what you are capable of. Unsurprisingly, this is where my Brand Discovery programme kicks off.  We start by creating a Brand Model that pin-points the critical elements of any brand on eleven parameters and sum it all up in a Brand Promise that will be reflected in every action the organisation takes thereafter.  This is marketing operating where it should be, in the driving seat of a business.  Of course a brand model isn’t set in stone, it will change because any marketer worthy of the title will constantly review end-user needs and competitive positions and introduce initiatives designed to bridge between what customers need and what the organisation is able to deliver.  This might mean, among many other things, new products and services, a new pricing policy that will dictate manufacturing processes or new distribution routes.  As I said – marketing in the driving seat.

However, the big difference between Brand Discovery and what many people take to be brand development programmes is that once the Brand Model is established we introduce an ongoing corporate process, incorporating internal marketing and training elements, processes, brief formats and judgement tools, designed to ensure that the Brand Promise is represented consistently at every level of the organisation.  We go even further than this, in fact, by working with the organisation as it migrates from the old management paradigm to a marketing-centric approach.

It seems to me that this is just what British parliament needs right now, but as with many commercial organisations that I encounter, its hard to imagine how we will get ourselves on that track when the same self-interested politicians/managers who got us into this mess in the first place, are the ones who make the decisions about how we fix it.  On the other hand, if parliament does vote to re-invent itself, rather than just go through the motions, I suppose it will mean that by definition the majority of MPs are honourable and trustworthy, which is a rather better starting point than might appear to be the case right now.

While the politicians get on with their task, my advice to all managers is to take the opportunity to review the way you operate too.  A marketing-led business, with its consequential strong brand community, is by definition, more efficient than one that isn’t and the only real difference between a successful business and an unsuccessful one is efficiency.  What the recession has done is make the line between success and failure very narrow indeed, so its a no-brainer really.  You’ll only gain in the long-run and you certainly won’t lose short term either.