Monthly Archives: July 2016

The Success Tips

Starbucks has an angel on one shoulder and a devil on the other.

The angel works to guide Starbucks toward its better instincts: to retain the vision that impresario Howard Schultz had of re-creating a European café for an American (and now a worldwide) clientele, a “third place” that’s neither work nor home, where you can take your time, and where you pay more for coffee than you would at the deli down the street.

On the other shoulder, a devil whispers of the temptations of growth. The desire to grow pulls Starbucks, and all companies, toward the logic of scale — repeatability, robust processes, efficiency, speed. Growth in and of itself is a good thing; but it can go wrong if growth and scale come at the expense of vision, identity, or customer experience.

Few companies have resolved the tension between identity and growth as successfully as Starbucks. So as Schultz prepares to leaves the CEO post to head up the company’s new, ultra-upscale Starbucks Reserve venture, it’s worth reflecting on what he has accomplished — not just for coffee drinkers but for business thinkers — and why his vision can endure beyond his tenure.

 

Beyond Beans

Schultz was a master of what is now called service design long before the phrase came to be. Like the cafés Schultz sought to emulate, service design — what a business does to set and meet the expectations of the customers it wants — has its roots is Europe.

Everything about Starbucks — from the Italian names for small, medium, and large-size drinks to a carefully considered counter height that lets you see the baristas work to hundreds of combinations like half-caf-latte-with-two-shots that let you personalize your beverage to the nth degree — was designed to make the customer slow down and smell the coffee, in a distinctly European way.

Write Your Personal Business

It’s that time of year again. The pressure is on to make New Year’s resolutions: Lose weight. Get to meetings on time. Interact more with your direct reports. A few goals are put on a list…and are forgotten by January 3rd. While this annual ritual of reflection is well intentioned, it rarely changes behavior because it focuses on what you do (or should do), not the deeper question of why you do it.

I’ve discovered an alternative to New Year’s resolutions, one that addresses that disconnect between the what and the why and can spark real change. It’s the personal manifesto, and it particularly valuable for those who aspire to lead.

Michael Hess, founder of sales management firm Core 6 Advisors, introduced me to the idea. The manifesto is a tool that he uses with sales managers and salespeople to help them focus on their true personal and professional aspirations as well as what it will take to achieve success.

The genesis for Hess was a collection of quotes and thoughts he had written on Post-its and stuck on his computer monitor. As Hess began to spend less time at his desk, he put all those notes on a sheet of paper, kept folded in his wallet, so that could reflect on them wherever he was. Along the way, he realized what an essential compass these scribbled words had become. They weren’t just notes, they were the fodder for his personal manifesto.

A manifesto is a rigorous written account of where you are, where you would like to be, and why. Unlike New Year’s resolutions, the personal manifesto isn’t tied to the time of year or to specific acts. It is a way to keep yourself focused, thoughtful, and on-track through the ups-and-downs of a busy life. And it can be amended as needed.

Talk about costs that you need to know

“Everything went quiet.” That’s how one manager described the workplace immediately after his company announced a large-scale restructuring — and it’s an all-too-familiar scenario to employees whose companies have engaged in a cost reduction initiative. Decisions are being made at the highest level of management, but little is known outside that inner circle. Employees still need to do their jobs: serving their external and internal clients, meeting deadlines, and moving existing projects and plans forward. But that’s easier said than done in the face of uncertainty. Worse still, no one can be sure that a slash-and-burn cost-cutting exercise will accomplish its intended result. Often, these efforts weaken a company instead of positioning it to grow effectively.

Restructuring initiatives can have a debilitating effect on the hearts and minds of employees, affecting those who stay as well as those who are let go. In our work with dozens of organizations implementing sweeping cost-cutting programs, we have observed firsthand the turmoil that employees experience — and how frequently their needs are forgotten during the crucial work of planning for the transformation.

But what if the restructuring were more than a slash and burn? What if it appealed to hope instead of fear? What if it not only promised, but actually delivered, a stronger company and a better place to work? Cost management is effective only when it leads to a less sclerotic, more aspirational enterprise — one without suffocating bureaucracy or micromanagement, in which initiative and entrepreneurship are encouraged and rewarded, internal processes serve the customers and employees instead of “the process” itself, and the company outperforms the competition consistently. If the restructuring doesn’t help the company get stronger — if it doesn’t lead to a better way of working for everyone in it — then it probably wasn’t worth conducting the exercise in the first place, because the effects won’t last.

Big Data Mean on Business

Big data is the term used to describe the enormous datasets that have grown beyond the ability for most software to capture, manage and process the information.  But volume is not the only way to define big data. The three Vs generally used to describe big data also include the multiple types – and sources – of data (variety) as well as the speed (velocity) at which data is produced.

 

If you need more perspective, think about this for a second: According to IBM, 90 percent of the data in the world today has been created over the past two years. That amounts to 2.5 quintillion bytes of data being created every day.

 

How can big data help me?

Big data may seem to be a bit out of reach for SMBs, non-profits and government agencies that don’t have the funds to buy into this trend. After all, big usually means expensive right?

But big data isn’t really about using more resources; it’s about effectively using the resources at hand. Take this analogy from Christopher Frank of Forbes who likened big data to the movie Moneyball: “If you have read Moneyball, or seen the movie, you witnessed the power of big data – it is the story about the ability to compete and win with few resources and limited dollars. This sums up the hopes and challenge of business today.”

Specifically, it shows how organizations with limited financial resources can stay competitive and grow. But first, you have to understand where you can find this data and what you can do with it.

 

Big data strategies

Ideally, big data can help resource-strapped organizations:

  • Target their market
  • Make better decisions
  • Measure feelings and emotions

Targeted marketing

Small businesses can’t compete with the enormous advertising budgets that large corporations have at their disposal. To remain in the game, they need to spend less to reach qualified buyers. This is where it becomes essential to analyze and measure data to target the person most likely to convert.

There is so much data freely accessible through tools like Google Insights that organizations can pinpoint exactly what people are looking for, when they are looking for it and where they are located. For example, the CDC used big data provided by Google to analyze the number of searches related to the flu. With this data, they were able to focus efforts where there was a greater need for flu vaccines. The same can be done for other products.