Jun 21, 2009 | Management, Marketing, Strategy
Brands are often the greatest asset a business has, in the case of service businesses, brands make up most of the assets.
Why then are the brand sensitive decisions so often made by young, inexperienced so-called “marketers” whose agenda is driven by many things, but not usually the health of the brand beyond their expected short tenure.
It does not matter if the CEO is by training an accountant, or engineer, or anything else, it remains that his/her biggest job is to nurture the long term returns to shareholders, and to do they must become the Senior Brand Manager.
Jun 18, 2009 | Management, Marketing, Strategy
Re-reading Seth Godins little gem “Triibes” during the week, I again came across the term “sheepwalking” to describe the pervasive impact on most people of the status quo.
Last week I was chatting to a mate about a book he is writing offering some ideas on the commercialisation of scientific IP by Australia’s largely publicly funded research agencies, whose record in this regard leaves a lot to be desired.
As a scientist who “sold out” and ran companies, and then went back to the scientific world after 25 years, he is in a great position to bring insight to the table. His descriptions of the power of the status quo in these organisations, and the reaction of those who live in them are exemplars of Sheepwalking.
Australia is supposed to be the lucky country, and it has been, our track record in inventing stuff is great, commercialising it has been a bit of a problem, but unless we get our act together in the race to commercialise knowledge, organisations like CSIRO will become shepherds keeping a few nerds employed at public expense.
Jun 17, 2009 | Demand chains, Management, Strategy
Nice thought.
Contracts are the usual form of defining an agreement, they are an enforceable substitute for trust that each party will keep his end of the bargain.
However, the web has made information so freely available, that the potential is for a substitute form to evolve, a form that calls for, and publishes performance data for all to see.
The ambient threat that non performance to an agreement will become public knowledge is going to become as powerful as a contract, as it will inform others that your business is not to be trusted. Similarly, the converse is true.
Will facebook replace a contact, perhaps not, but it may mitigate the current monopoly lawyers and the courts have on the process of agreement enforcement, becoming entirely more democratic and affordable in the process.
Jun 16, 2009 | Demand chains, Management, Marketing, Strategy
There is a theme in the demand chain category of this blog. Wherever I go, I see the power of information transparency to improve performance, not just in commercial situations.
There is an ongoing battle in Australian education for school scorecards, anyone who seriously thinks about performance improvement of Australia’s education system comes to the conclusion that information on current performance is a pre-requisite for improvement, but the bureaucracy, and the teachers union together, but for their own reasons are making it difficult, all in the name of our childrens education.
Bullshit. It is in the name of retaining the very comfortable status quo.
Similarly, a scorecard of hospital performance has been shown in parts of the US to have a dramatic effect on surgical outcomes. Won’t happen here, even with the seeming catalysts for change that are evident in several hospitals, Bundaberg in QLD and Campelltown in NSW amongst others.
In the event we ever get real transparency, where results can be seen, and lessons learnt, the productivity of public dollars spent on health care would improve dramatically.
Businesses and value chains that have used transparency as a management tool routinely see productivity double over time, and there is no reason the results in Healthcare and Education would not repeat that performance.
Jun 12, 2009 | Management
“We do not have time for that long term stuff, we have to …..(fill in your own)… or we will not survive to worry about it”.
This is true, particularly in small business, but if you do not put aside time and energy to consider the origins of the symptoms, and treat them, all you get is steadily worsening symptoms, taking more time and resources to manage, whilst getting sicker.
Identify the problem, treat it, and the symptoms go away, leaving you do something useful with the time freed up.
Jun 11, 2009 | Demand chains, Management, Sales, Strategy
Most supply chains are driven by orders, someone reacts when an order is received.
The niggling question is always about demand, as most recognise it drives orders, inventories, innovation, competitive pressure, and so on, but is rarely measured.
Orders are at the end of the process, they arrive after making allowances for out of stocks, poor display, customers memory, competitive activity, the skill and interest of the sales person, and many other factors.
Demand is created by understanding the customer, and positioning your good or services in their minds as the best value solution available to address their need. This is longer term stuff, harder to measure, easy to ignore, but it is the foundation of commercial sustainability.
How much better would it be to have in place signals that reflect demand, they might give us an opportunity to reduce the incidence of lost opportunities, whilst better managing our investment in inventories, brands, customers, and the short term sales tactics used to stimulate an order.
