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The Big Picture of Business: Critical Decision

Ceasing CD production will harm an already ailing music industry, where technology is not the answer: Analyzing the music industry and changing technologies.

Certain forces in the recording industry have announced intentions to cease production of compact discs and convert their music marketing to digital downloads. trimming the fat and criticizing incorrect activities in the organizational structure.

That is a dangerous course of action and stands to further devastate a music industry that has systematically killed the golden goose over many years.

The CD issue (including those who advocate obliterating the medium) is symptomatic of the bigger watersheds that have crippled and ruined large chunks of the music industry:

  • Not understanding the business basics.
  • Taking decisions away from the creative people.
  • Focusing only on the technology, not on the creative output.
  • Not understanding the totality of the music industry, with recording as a prime stakeholder, not as the stake driver that it tries to be.
  • Failure to learn from the past.
  • The trends toward over-formatting of radio.
  • Failure to understand and nurture the relationship with radio.
  • Failure to understand and nurture the relationship with television.
  • Deregulation of broadcasting.
  • Failure to collaborate, bundle products or combine efforts to create and sustain advantage.
  • Failure to understand and nurture relationships with the retailing industry.
  • Failure to plan for the present.
  • Trends toward homogenization of culture that resulted in drastic cuts in the quantity and quality of original music programming available.
  • Trends away from utilizing and showcasing music.
  • Trends away from spoken word and educational usage of recordings.
  • The music industry responding to changes and uncertainty by scapegoating the wrong people.
  • The international marketplace responding as entrepreneurs by taking up the slack and addressing the ‘missed opportunities’ by the American music industry.
  • Making knee-jerk decisions based upon partial information and wrong hunches.

In 1877, Thomas Edison introduced the cylinder, developed originally for business office use. It was the earliest Dictaphone, whereby messages would be recorded by a needle on a rolling tube. In 1888, Emile Berliner invented the phonograph record, for the purpose of transporting music to consumers. Columbia Records (now Sony) was founded in 1898, followed by RCA Victor Records in 1901. Edison missed his chance to influence the recording industry by sticking with the cylinder medium, not converting to phonograph records until 1912 and finally getting out of the recording business in 1929.

The radio industry began as a multi-city network that piped recorded music into department stores. In 1920, the first radio sets sold by Westinghouse to promote its first station, 8XK in Pittsburgh, PA. In 1926, NBC Radio signed on the air, followed by CBS the next year. In addition to news and other entertainment shows, a large portion of radio programming was attributable to music, and a long growth relationship with the record industry was sustained. Stars came on variety shows to promote their releases, and the era of radio disc jockeys was firmly secured in the public culture.

The media of music distribution was the 78RPM record. It was bulky, breakable and limiting the amount of music on each side. Record companies put multiple discs into sleeves and began calling them ‘albums,’ the terminology still existing today. Those albums started as collections of ‘sides’ but became thematic. Further packaging enabled various-artist albums and collections of ‘greatest hits’ (those two categories currently accounting for half of all CD sales, a big chunk of business to be wiped out by going all-digital).

The two major labels went into research and development on non-breakable records that would play at slower speeds, with thinner grooves and more music on each side, producing a cleaner sound (without pops and scratches). The results were Columbia (owned by CBS) introducing the 33-1/3RPM long playing vinyl record in 1948 and RCA Victor (owned by NBC) introducing the 45RPM vinyl record in 1949. Why those speeds? They were combined derivatives of 78RPM, known by engineers as ‘the mother speed.’ Not surprisingly, today’s CDs play at 78RPM, a technological updating of Emile Berliner’s 1888 invention of the phonograph record.

The 1930s and 1940s were massive-growth periods for the recording and broadcast industries. Along came other record labels: Brunswick, Decca, Capitol, Coral and jazz imprints. Movie studios got into the record business. Entrepreneurs brought Atlantic, King and other labels to showcase black artists and country music (two major growth industries attributable to the interrelationship of radio and records). Then came the international recording industry, which is the major user of CD technology.

The 1950’s saw exponential growth of the recording industry. There were more retail outlets for the music than ever before or ever since. One could buy music at every grocery store, department store and many unexpected locations. There was an industry of sound-alike records, sold at reduced prices. The result was that all families had phonographs, and music was going into cars via radio, thus stimulating record sales and thus encouraging other technologies to bring music into cars (emerging as homes in our mobile society).

The emergence of teens as the primary record buyers was fed by TV shows, increased disposable income and recording artists catering to younger audience. Due to broad radio playlists, there was ample airplay for every musical taste, and the record industry continued to grow. Independent record labels proliferated, as did recordings by local artists around the country.

With the British Invasion of the 1960’s came the reality of the international nature of entertainment. To package and market emerging modern music, media were implemented to make the best possible sounds and reflect the plastic portability of youth traffic. Along came music available on cassette tapes, then 8-track tapes. The music industry experimented with Quadraphonic Sound, with the ballyhoo associated with the Ipod, and that experiment fell flat after one year.

At every juncture, there were transition periods in the adoption and acceptance of new media. For the first 11 years of 45RPM records and LPs being manufactured, there were still 78RPM discs on the market. Throughout the tape formats, there were still records. With the advent of Compact Discs, there were still records and cassette tapes on the market. To now rush to conversion of all music to digital downloads is short-sighted and stands to kill markets and after-markets for CDs that still have another 20 years to run.

To kill the CD makes poor business sense. 78RPMs were phased out because better technology was developed. Quadraphonic was technology glitz but did not make good business sense. 8-track tapes were only meant to be an interim medium, until CDs were developed. CDs are the dominant medium and are economical to produce.

Killing CDs is a bean counter move and is contrary to the heart of the music business. CDs enable local bands to have records. Computer downloads are convenience items and impulse purchases. People’s listening frequency and intensity is different (and significantly reduced) through computer downloads.

Nothing still says ‘record’ like a CD in a plastic case, where the album is as much in the packaging as the content material on the disc. Lose the ‘record album,’ and the music industry will never be the same.

This is the juncture where the music industry must step back, analyze their decline over the last 30 years and understand the reasons why they must create new opportunities and move forward.

If I were advising the industry, I would steer them toward:

  • Stimulating a culture where excellence in music would be encourages, thus improving the quantity and quality of music being recorded.
  • Creating a music industry where the products would be more worth buying. There are still higher profits in album sales, rather than Internet song downloads (the modern equivalent to the 45RPM single).
  • Thinking of music distribution in directions other than just the Internet.
  • Stimulating the global record industry.
  • Encouraging TV shows to once again have theme songs.
  • Encouraging movies to get back to real musical soundtracks (not just the current drum crashing noise effects). This would re-boot the soundtrack album industry.
  • Recognizing that nearly half of all record sales and downloads involves repackaging older music product for new audiences.
  • Finding ways to promote local acts around the world.
  • Working with radio programmers to get playlists expanded. Music has to have the interactive exposure via radio. Nurture programmers of internet radio shows as the best new opportunity for expanding music exposure.
  • Understanding better the after-market of music resellers, and stimulate that series of opportunities for expanding the reach of musical products around the world.
  • Recognizing downloads as ‘low hanging fruit.’ Do not put all your industry’s distribution in one area, because that one area will always change.

The much-needed regeneration of the music industry to make a comeback and reclaim its past dominance takes time, energy, resources and lots of heart to produce. Couch planning as the only way to avert a crisis. Changing technologies does not equate to planning and strategy development.

People get what they pay for… always have, always will. Things are never simple for one who must make decisions and policies. Many factors must be weighed.

One cannot always go the path that seems clearest. One who thinks differently and creatively will face opposition. With success of the concept, it gets embraced by others. Shepherding good ideas and concepts does not get many external plaudits. The feeling of accomplishment must be internal. That is a true mark of impactful changes and success.


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business: Institutional Reviews Help Public Companies to Learn from the Downturn and Move Forward

An Institutional Review is a look at activities that contribute to an organization’s success and well-being. This transcends a traditional audit and identifies factors that already contribute well to the organization, rather than simply looking for ways to cut, curtail or penalize. It is more than just trimming the fat and criticizing incorrect activities in the organizational structure.

This review is the basis for most elements that will appear in a strategic plan, including the organization’s strengths, weaknesses, opportunities, threats, actions, challenges, teamwork, change management, commitment, future trends and external forces.

These are the points at which every company must assess its own status and chart the process forward:

The Big Picture

  • The organization is not now what it started out to be.
  • There seems to be a need to change the direction of the organization.
  • Management is concerned that resources are not concentrated on important things.
  • Management of the organization seems tired or complacent.

Growth

  • Management is cautious and uncertain about the company’s future.
  • The company has grown too rapidly.
  • No-growth or slow-growth has occurred.
  • There is a need to step up growth and improve profitability.

People – Productivity

  • Apathy, low productivity and discord are exhibited.
  • Management seeks perspective and needs to be recharged.
  • There is the need to develop better information to help management make better decisions.
  • Individuals are more concerned about their own areas than for the overall organization.

Processes

  • There is a sense that company operations are out of control.
  • Management expresses a need for better internal coordination of company activities.

External-Marketplace

  • External forces threaten the status quo…and open up new opportunities.
  • The environment in which the organization competes is rapidly changing.

What a Review Could Include:

Among the components and professional specialties that could be represented in a performance review, per each branch on the Business Tree, include:

  • Branch 1: Core business, core industry.
  • Branch 2: Environmental, safety, IT systems design and computer software, training for computers and technology, architecture, engineering and legal
  • Branch 3: Accounting, banking, investments, financial planning, benefits programs, real estate, fund raising for non-profit organizations and investor relations services for public companies.
  • Branch 4: Training for diversity, team building, professional education and development, motivational and executive development-mentoring. Human resource administration, employee testing, behavioral research, executive search, talent pools, reorganizations, downsizing, executive outplacement, labor issues and negotiating.
  • Branch 5: Sales strategy, sales training, marketing strategy, customer service, advertising, direct marketing, public relations, special events, video production, promotional specialties, graphic design-production and website design-production.
  • Category 6: Business performance reviews, research, quality management programs, government relations, public policy, community relations and re-engineering.
  • Category 7: Corporate strategy, visioning, strategic planning, futurism, thought leader program and emerging business issues.

Expected Results of an Institutional Review:

  • Your service is efficient and excellent, by your standards and by the publics. You are sensitive to the public’s needs, and you are flexible and human in meeting them.
  • Your staff is likeable and competent. They demonstrate initiative and use their best judgment, with authority to make the decisions they should make.
  • You have a good reputation and are awake to community obligations. You contribute much to the economy. You provide leadership for progress, rather than following along.
  • You always give your customers their money’s worth. Your charges are fair and reasonable.
  • You are in the vanguard of your industry.
  • You provide a good place to work. You offer a promising career and future for people with ideas and initiative. Your people do a day’s work for a day’s pay.
  • The size of your organization is necessary to do the job demanded of you. Your integrity and dependability make the public confident that you will use your size and influence rightly.

What Well-Run Companies Accomplish:

  • Prestige or favorable image…and its benefits.
  • Promotions of products and sales.
  • Good will of the employees.
  • Prevention and solution of labor problems.
  • Fostering the good will of communities in which the company has units.
  • Good will of the stockholders, board of directors, and owners.
  • Overcoming misconceptions and prejudices.
  • Good will of suppliers.
  • Good will of government.
  • Good will of the rest of your industry.
  • Attraction of others into the industry.
  • Ability to attract the best personnel.
  • Education of the public to the purposes and scope of the product.
  • Education of the public to a point of view.
  • Good will of customers (and their friends and colleagues).
  • Seeing that the industry is properly represented in the curricula of schools and colleges.
  • Assisting educators in teaching about the industry.
  • Creating public support for legislative proposals that the industry favors or public opposition to legislation that it opposes.
  • Obtaining public recognition for the social and economic contributions that the industry makes.
  • Addressing outside interference or competition with the industry.
  • Public understanding of the regulation of the industry by the government, in order to assure equitable treatment.
  • Consumer understanding of how to use the product.

Grounding Factors for Business:

Being stable does not mean that an organization stands still. Upholding traditions does not necessarily mean that one vehemently resists change. Being a family run company does not mean that outside stakeholders do not exist. Lawyers go to school to study the law, not how to become a lawyer and run a legal practice. The same analogy holds true for accountants, engineers, doctors and architects. All are taught professional skills but must absorb along the way the business talents necessary to run their practices.

Authority figures must be effective disciplinarians. They must also be recognizable role models in order to inspire commitment from their team members. The best leaders are adept at the balancing acts of business priorities. Organizations are collections of individuals, team clusters, operating units, departments, management philosophies and ideologies.

To gauge the company’s future direction and avoid roadblocks to success, independent reviews must be conducted. The objective is to benefit from changes, rather than become the victim of them. By spotting trends and recognizing inner strengths of your existing company, you can compete and excel more effectively than without any strategy at all.


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business – Developing The Talent for Business to Succeed

A Primer on the Workforce, Levels of Jobs, Plateaus of Professionalism

It’s lonely at the top. Corporate executives must develop themselves for the next level and to be useful to their companies and communities in the future.

This is a primer for executives and the heirs apparent to company leadership. Critical topics include leadership development of executives, mindset changes in the evolution from manager to executive to leader, executive mentoring, insights into how top professionals evolve, plateaus of professional accomplishment, developing a winning work ethic, lifelong learning and the accrual of business wisdom.

Many books have been written on the subject of leadership. They came from training, team building and people management perspectives. I see the leader from the big picture perspective and how he-she paints career panoramas by interconnecting the pieces.

My own philosophy of leadership starts with the premise that every dynamic of a successful organization must be in some way aimed towards its stakeholders. While all good leaders must keep the company’s internal operations moving forward, the very best ones must also be looking outside the company towards the customers, clients, financiers, volunteers and the organization’s entire affected constituencies.

If management is complacent or is not outward looking, then the same attitude and resulting behaviors will be held by employees who render the services. Failure to keep a clear focus upon the product, its marketplace, its customers and people who influence the company’s ultimate success will eventually do great harm to the company.

7 Basic Categories of the Work Force

  1. People who only do the things necessary to get by. They hold just a series of jobs… no more, no less.
  2. People who are managed by others. They meet quotas, schedules, procedures and statistics. These are the people who do and make things.
  3. Administrative, managerial support. They keep the boat afloat. Push paper, systems, technology. For them, the process is the driving force.
  4. System upholders. They go out of their way to not rock the boat. They maintain the status quo. They resist change and surround themselves with like minds. They are motivated by survival.
  5. People who sell something. Most companies have revenue-sales as their primary objective and measurement. To them, everything else is really secondary.
  6. People in transition. They are forced by circumstances to change (career obsolescence, down-sizing, marketplace factors). Some voluntarily effected changes, to achieve balance or new direction in life. Some do better in newer environments. Others cannot weather changes because they are too tied to staid corporate orientations.
  7. Idealists… out to do meaningful things. Deeply committed to accomplishing something special… beyond basic job requirements. They adapt to and benefit from change. They learn to take risks. They are motivated by factors other than money.

Classifications of Jobs and Workers

  1. Unskilled Labor
  2. Basic Jobs
  3. Apprentices
  4. Semi-skilled Labor
  5. Helpers
  6. Servers
  7. Entry-Level Worker
  8. Base-Level Sellers (door-to-door, telephone, clerks and checkers, retail sales)
  9. Support Staff
  10. Journeyman laborer
  11. Technician
  12. Administrative
  13. Entry-Level Professional
  14. Mid-Level Worker
  15. Mid-Level Sellers (consumer services, multi-level marketing, retailers, vendors)
  16. Tradesman, Skill Provider
  17. Craftsman, Arts and Humanities Provider
  18. Science-Technology Provider
  19. Mid-Manager
  20. Mid-Level Professional
  21. Career Worker
  22. Professional Sellers (business-to-business, professional services, financial services)
  23. Career Manager
  24. Career Professional
  25. Consultants (for every level to this point)
  26. Senior Professional
  27. Executive
  28. Seasoned Professional
  29. Beyond the Level of Professional
  30. Knowledge Creator – Inspiring Force – Thinker – Wisdom Resource

7 Plateaus of Work Ethic

  1. Just Enough to Get By. Getting paid is the objective. Don’t know or have not learned anything further.
  2. Taking Advantage of the System. Coffee break mentality. Abuse sick day policies, health benefits, etc. ‘Never gonna be’ syndrome.
  3. Inside the Box. Follow the rules but never consider formulating them. Subscribe to the philosophy: ‘There are no wise decisions… only activities carried out according to company procedures.’
  4. Don’t Rock the Boat. Interested in remaining gainfully employed. Look forward in the short-term to the next paid vacation, in the long-term toward retirement.
  5. Professional Is As Professional Does. Daily behaviors, achievements speak for themselves. Consistent in approaches. Never stop learning and growing.
  6. Change Agent. Either forced by circumstances to change (career obsolescence, down-sizing, marketplace factors) or thrive upon change. As time progresses, become a mentor and champion for change.
  7. Deep Commitments to Body of Work, Professionalism, Ethics. Don’t know what a coffee break, sick day or vacation is. Give their lives, souls, expertise to careers… and the lifetime results show positively. Profound influence.

7 Stages in People’s Willingness to Learn New Perspectives

  1. Cluelessness-Apathy. Henry Ford said, “90 percent of the American people are satisfied.” Will Rogers said, “Mr. Ford is wrong. 90 percent of the people don’t give a damn.” Content with the status quo. Taking a vacation from thinking. Not interested in learning more about life or seeing beyond one’s realm of familiarization.
  2. Basic Awareness. Latent readiness. Not moved to think differently, take risks or make decisions until circumstances force it. 90 percent don’t care about specific issues until events that affect their lives force them to care about something. 5 percent affect decisions. 5 percent provide momentum.
  3. Might Consider. The more one gathers information, they apply the outcomes of selected issues to their own circumstances. Begin learning through message repetitions.
  4. Taking in Information. Something becomes familiar after hearing it seven times. Gains importance to the individual through accelerated familiarity. The more one learns, the more one realizes what they don’t know. At this plateau, they either slide back into the denial level of cluelessness or launch a quest to become mature via learning more about life.
  5. Beginning to Form Opinions. Triggering events or life changes cause one to consider new ideas, ways of thinking. Survival and the need-desire for self-fulfillment causes one to form strong desires to learn. Cluelessness and inertia are no longer options and are now seen as backward and self-defeating.
  6. Thinking and Analyzing. Changing paradigms. Behavioral modification ensues. There are ways we used to think and behave. We do these things differently now because we have learned preferable ways that cause better outcomes. Thus, we don’t revert to the old paradigms.
  7. Behavioral Change and Commitment. Advocating positions. Creating own original ideas. Holding and further developing insights. Commitment to change and personal growth. Willing-able to teach and share intellect and wisdom with others.

As people progress in their careers, the most valuable ones to the companies are the number 6 and 7 professionals. Professionalism works in organizations where career paths all progress toward the number 7. Valuable people make for valuable companies. The beneficiaries are their customers.


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

StrategyDriven Podcast Episode 40 – The Big Picture of Business: Learning from the Recession and Moving Forward

StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.

Episode 40 – The Big Picture of Business: Learning from the Recession and Moving Forward explores the actions business leaders can take in order to position their organizations to achieve marketplace success during economic downturns. During our discussion, Hank Moore, Corporate Strategist and author of The Business Tree: Growth Strategies and Tactics for Surviving and Thriving, shares with us his insights and illustrative examples regarding:

  • the underlying causes of ‘The Great Recession
  • why so many organizations are retaining cash
  • actions business leaders should take now to maximize their success in the current market environment
  • the impact the Dodd-Frank Wall Street Reform and Consumer Protection Act is having on businesses
  • how business leaders can prepare their organizations to more effectively deal with future economic downturns

Additional Information

In addition to the outstanding insights Hank shares in The Business Tree and this edition of the StrategyDriven Podcast are the resources accessible from his website, www.HankMoore.com.   Hank’s book, The Business Tree, can be purchased by clicking here.

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About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business – The Realities of Branding… Slogans that Mislead

It is both comical and sad to analyze certain promotional hype that one hears. Some companies claim that purchasing their product is the ‘be all, end all’ panacea for life’s dilemmas. If only you will buy their version of ‘The Answer,’ then you can surely fast-forward your way to instant riches, success and an easy life.

This is not written to take swipes at responsible branding, marketing and advertising. More than 80 percent of what one sees and hears is clever, informative, research-based, sensibly executed and intended to orient target audiences toward marketplaces. Advertising fulfills many essential niche needs. Branding is a sub-set of marketing, which is a sub-sub-set of corporate strategy. It needs to reflect and support strategy, not to deter from it.

This is written to address the bigger issue that some companies believe the hype that they are issuing. One most often hears inflated misrepresentations, false perceptions and over-statements via such contexts as:

  • Corporate image spots that appear on TV news shows.
  • Business-to-business publication advertising.
  • Self-promotional brochures.
  • Direct mailings to niche audiences.
  • Catalogs.
  • Cause-related marketing materials.

Some companies are downright parsimonious about themselves. Some either skillfully lie to get what they think they want, or may really believe themselves to be what they hype to publics who don’t know any better.

Many consumers are gullible, ‘name’ crazy and susceptible to grandiose claims. They take what is said at face value because they have not or don’t care to develop abilities to discern what is hyped by others. They believe distortions faster than they believe facts, logic and reason.

This negatively impacts our society, which continually seeks button-pushing answers for life’s complex problems without paying enough dues toward a truly successful life. Consumers naively believe misrepresentations, to the exclusion of organizations which are more conservative, yet substantive, in their informational offerings.

Many of the hucksterisms represent ‘copywriting’ by people who don’t know anything about corporate vision. Their words overstate, get into the media and are accepted by audiences as fact. By default, companies have the appearance of credibility based upon misrepresentations.

Companies put too much of their public persona in the hands of marketers and should examine more closely the distorted messages and partial images which they put into the cyberspace. Our culture hears and believes the hype, without looking beyond the obvious. People come to expect easy answers for questions they haven’t yet taken the time to formulate.

Here are some examples of the misleading and misrepresenting things one sees and hears in the Information Age:

‘Achieve Perfection.’
What they’re really selling: Computer software.
My analysis: There is no such thing in life as perfection, as anyone who had led a meaningful life has learned. Continuous Quality Improvement is a higher level of thinking. Computer software is merely one tool out of many. It cannot single-handedly create quality.

‘Solutions for a Small Planet.’
What they’re really selling: Internet access.
My analysis: It takes more than a keyboard to effect solutions. You need global thinkers, planning, visioning, human interaction, the ability to reason…and much more.

‘Problem Solvers.’
What they’re really selling: Computer technicians.
My analysis: Yes they are, for less than one tenth of one percent of business issues.

‘Helping You Achieve Your Future.’
What they’re really selling: Photocopying equipment.
My analysis: You achieve your own future, with the help of skilled advisors. Once you strategize your life’s plan, it is a good idea to share photocopies of it with others.

‘A Better Life for the People of ____.’
What they’re really selling: Electric power plants.
My analysis: Yes, but how community-responsive are the companies which sell equipment to public utilities. What is their commitment toward literacy, social services, health care, the environment, multicultural diversity and other key issues that really create a better life?

‘Work Smarter, Not Harder.’
What they’re really selling: Computer software.
My analysis: Productivity software does no good unless one commits to change, alters behavioral traits and commits to time management. Then, we move on toward the bigger issues which software is not capable of addressing: what you do with your time, what you contribute and how you grow-succeed.

‘Tap the potential of companies focused on the future.’
What they’re really selling: Stock investments.
My analysis: The stock market looks primarily at profits…one small part (1%) of the business picture. It must also focus upon people, products, processes, procedures and potential.

‘How the Fortune 1000 Made Their Fortune.’
What they’re really selling: Paging equipment.
My analysis: Pagers were not invented when they made their fortunes. Communications is fundamental to maintaining, but technology is only as good as the people using it. The bigger question is: how accessible are the executives, and how is company vision articulated and shared? That’s the kind of communications that really grows companies.

‘Products for Healthy Living.’
What they’re really selling: Skin cream.
My analysis: An overstatement. Health care professionals rank other things higher on the list of priorities.

‘Your Survival Could Depend On It.’
What they’re really selling: Home fire safety gear.
My analysis: Agreed, though I would include continuing education, self-fulfillment and the ability to plan one’s future life to the equation.

‘Change Your Hairstyle as Easily as You Change Your Mind.’
What they’re really selling: Ladies’ hairpieces.
My analysis: Many people (women and men) have trouble changing both…which still reflect the mindsets and self-images of their college days.

‘Speak the Language of Business Success.’
What they’re really selling: Foreign language lessons.
My analysis: English is the international business language, and most people do not use it to best advantage. Workplace illiteracy is much more rampant than people even understand. Many managers have poor people skills, as well as poor verbal-written communications skills. Business writing and public speaking classes should be mandatory. The ability to communicate must be taught to all who wish to attain business success.

‘Develop the Drive to Accomplish Anything.’
What they’re really selling: Motivational tapes.
My analysis: Agreed, in philosophy. They require human development, mentoring, knowledge enhancement and much more to be successful. Tapes alone are not enough. They may start or augment a path of self-growth and success. Tapes cannot take the place of reading.

‘Insightful Advice for a Complex World.’
What they’re really selling: Banking.
My analysis: Financial planning does not constitute global thought on life. It’s 1% of the total picture. Banks buy money wholesale and sell it to borrowers at retail rates. Banks are now trying to compete with financial planners and investment banking houses.

‘Getting you back to the way things once were.’
What they’re really selling: Home owners’ insurance.
My analysis: There is nothing more permanent and positive than change (which is 90% beneficial). Too many people spend much of their lives clinging to the past, fighting change and criticizing those who progress. While insurance is important, nothing should promise a return to the past. That plays into the hands of has-beens.

‘Enhancing Your Life at Home.’
What they’re really selling: Outdoor signage.
My analysis: To facilitate enhancement, focus upon quality time with the family, hobbies, reading, exercise, gardening and entertaining guests.

‘The Spirit of Excellence.’
What they’re really selling: Residential real estate.
My analysis: Price and location are the deciding factors in real estate. Knowledge of the agents is the next factor. While all companies should achieve excellence in what they do, no single organization embodies it all.

‘Your opportunity of a lifetime is here. You owe it to yourself and your family to be successful.’
What they’re really selling: Multi-level marketing, home-based business.
My analysis: The language of infomercials often preys upon low-income and low-esteem people. It alleges that their scheme is the only true way to riches…which is a quick path toward a successful family life. Obviously, they are mixing messages to sell their programs. Life is a series of progressions, choices, dues-paying and self-earned successes. There is no substitution for diligence and hard work.

‘Has All the Trappings of a Box Office Sensation.’
What they’re really selling: Trucks.
My analysis: That means that it’s based upon flash, sizzle and hucksterism. This week’s box office sensation will be forgotten soon enough. There’s always another waiting to take its place. Why do TV newscasts devote so much valuable airtime to show box office grosses for movies? That’s not news. Further, it reinforces the erroneous message that sales rankings are the primary measure of a company or product. Anybody who hangs their hat upon changeable, temporary rankings is headed for a fall. The public also loves to see celebrities, products, trends and cultural icons fall just as quickly as they rise. It’s a sick phenomena. Nothing – not even reputable films – should be judged only by fickle box office ratings.

‘Accelerate Your Business.’
What they’re really selling: Computer software.
My analysis: Not every company grows at the same rate. Database software does not make a company grow. It is a tool of people who put thought, planning, products and processes into perspective. Computer ‘consultants’ are not business strategists. Their product is one out of hundreds of business tools and must, therefore, be kept into proper perspective.

‘Improving Health Care in America.’
What they’re really selling: Data processing systems.
My analysis: Managing data and managing doctors (which is tough to do) are not the same thing. Non-core vendors do not and cannot improve the quality of a client’s core business. Products and services assist the bureaucracy to do its job more efficiently but cannot claim credit for Big Picture success of a client’s entire industry. In the case of health care, it’s more of a societal phenomenon that goes beyond the controls of its industry, providers and vendors.

‘Brewing solutions for a better environment.’
What they’re really selling: Packaged beverages.
My analysis: It is misleading to list the charities one has supported in one’s history, especially to prove a deceiving point. When you’re in the business of manufacturing and marketing packaged beverages, it is misleading to suggest that you’re in the business of protecting the environment. Cause related marketing is wonderful, but a company that exploits one cause may paint a partial (and thus false) picture of itself.

‘The Internet is fast becoming the greatest business revolution ever.’
What they’re really selling: Computer software.
My analysis: The Internet is a vehicle for sales and marketing. History tells us that revolutions are never fast. For terms like ‘greatest,’ try practical experience, learning, planning and human communication with colleagues…qualities which a sales vehicle cannot provide.

‘The Bumpy Road to Success Made Smooth.’
What they’re really selling: Small business banking services.
My analysis: Banking, like computer hardware and software, is a tool of the trade…not a driving force. Success is a long process, based upon how well one takes the turns. There are no shortcuts to true success.

Red Flag Expressions: When You Hear, Beware of False Claims!

Mission
Family Tradition
Fastest Growing
Caring
In One Easy Lesson
Better
#1 in Sales
World Class
Wealth and Riches
The Best
For All Your Needs

‘Our Mission.’
What they’re really selling: Retail merchandise.
My analysis: Beware of that phrase in advertising. It’s a sales ploy. Retailers are motivated by keeping the cash registers ringing. It’s unlikely that sales people know what a Mission Statement and the Strategic Planning process are. To confuse sales and Big Picture messages is a travesty.

‘Family Tradition.’
What they’re really selling: Usually retailers, restaurants, service companies.
My analysis: If the founder is still active in the business and is accessible to customers, then the reputation is upheld. Dysfunctional family-run businesses reflect dysfunctional families. Hiring blood relatives, in-laws and old friends is not always good business. A few pull their share, and others coast on the certainty of nepotism. Research shows the odds are against family businesses going past a second generation, for these and other reasons. Tradition is a red flag expression because it implies that change has not occurred. Nobody does things exactly as they did in the early days. To say they do is deceptive to customers, employees and the good family name. Tradition and maintaining the status quo are two different concepts. Real tradition is predicated upon change management and steady evolution of the business.

7 Defeating Signs for Growth Companies

When a company says they are the ‘Fastest Growing,’ beware! These circumstances are likely in place, each of which will defeat their claims:

  1. Systems are not in place to handle rapid growth…perhaps never were.
  2. Their only interest is in booking more new business, rather than taking care of what they’ve already got.
  3. Management is relying upon financial people as the primary source of advice, while ignoring the rest of the picture (90%).
  4. Team empowerment suffers. Morale is low or uneven. Commitment from workers drops because no corporate culture was created or sustained.
  5. Customer service suffers during fast-growth periods. They have to back-pedal and recover customer confidence by doing surveys. Even with results of deteriorating customer service, growth-track companies pay lip service to really fixing their own problems.
  6. People do not have the same Vision as the company founder…who has likely not taken enough time to fully develop a Vision and obtain buy-in from others.
  7. Company founder remains arrogant and complacent, losing touch with marketplace realities and changing conditions.

‘Caring for the Community.’
What they’re really selling: Perceived corporate self-image.
My analysis: Television stations are notorious about producing and airing self-serving promotional campaigns. They ‘care’ about the community. The bulk of their ‘caring’ is to promote local newscasts, which are their most lucrative sources of advertising revenue.

They say they are facilitating community dialog. Most available public service time, instead of going to non-profit organizations, is sold to corporations. Cause-related marketing packages have the ‘feel-good’ look of public service but are really disguised ad campaigns to promote corporate agendas and produce more revenues for the TV stations.

Newspapers brag about all they donate toward educating the community. What they’re really ‘donating’ is unsold ad space. They make up by increasing rates of advertisers…offering cause-related marketing packages as incentives.

When one media insists upon having exclusive name rights to a special event, that’s the kiss of death. For years, I’ve recommended to charities that they not put all their eggs in one basket. If one media is the ‘name sponsor,’ then that will negate coverage by other media. Charities rationalize that exclusivity gets them more intensive coverage than would a ‘shotgun publicity’ approach…which is not true and has never been proven so.

Name media are also notorious about failing to give all the exposure that they promised, citing advertising commitments as the overriding factor. This is truthful because media companies are firstly in the business of running advertising. Running programming and local news coverage is just the ‘wrap-around’ to generate audiences for advertisers. At the bottom of the totem pole sits coverage of community activities…unless they can sell advertising around it.

‘In One Easy Lesson.’
What they’re really selling: A quick fix, or a quick way to get company buy-in.
My analysis: Meaningful strategy, improvement and change are not achieved via quick fixes. They also need not be long drawn-out processes. Reasonable timelines may be achieved. Company growth or success cannot be accomplished In One Easy Lesson because human beings require more than once to learn meaningful lessons…plus the time and attention necessary to put lessons learned to good use.

‘Better.’
What they’re really selling: Their way of producing and selling.
My analysis: Human behavior training tells us that judgmental qualifiers like ‘good, bad, mean, evil and better’ are self-defeating. To be better is to slam someone else.

‘#1 in Sales.’
What they’re really selling: You should buy from them, since so many others do.
My analysis: #1 is for now. Sales rankings constantly change. To buy only because a company hypes that they are #1 is not a valid reason. Buy what you want…from a company that you respect. Also, if they’re #1, you’re just another sales statistic and customer service will suffer commensurately to the numbers behind whom you must stand in line.

‘World Class.’
What they’re really selling: If you want to be associated with a winner, buy from them.
My analysis: The organization that claims ‘world class’ is trying too hard to be put in the league of others. ‘World class’ is not self-bestowed…it is earned via a long track record.

‘Wealth and Riches.’
What they’re really selling: Their product is all that you need.
My analysis: There are no shortcuts to wealth and riches. Nobody will give away their secrets. Pyramid marketing schemes take advantage of failed hopes and ungrounded wishes. As P.T. Barnum once said, “There’s a sucker born every minute.”

‘The Best.’
What they’re really selling: Temporary rankings.
My analysis: There are too many ups and downs in business, without proclaiming yourself in a position for others to dispute or attack. Being successful in the long-run is much more admirable than being temporarily ‘the best.’

‘For All Your Needs.’
What they’re really selling: Wanna-be syndrome.
My analysis: No product or service fulfills all of a customer’s needs. To suggest otherwise is narrow-minded. The more self-assured business makes long lists of what it doesn’t do. It knows and relishes its niche, without trying to be all things to all people.

Now, to Salute Good Examples of Slogans and, thus, Company Posturing

As many misleading statements and campaigns there are, I would like to cite some of the ones that I respect. These prove that marketing can be compelling, thought provoking and intriguing at the same time. Here are some that I salute:

Better Grades Are Just the Beginning. Sylvan Learning Centers. This illustrates that continuous quality improvement is a process, not a quick fix. I heartily agree that learning is the key to everything else in life and that it must be planned and nurtured.

The Difference is Planning. Merrill Lynch. Agreed, although financial planning (a subset of Branch 3 on The Business Tree) constitutes less than 1% of full-scope organizational planning. If every consultant and vendor would advocate a cohesive approach to planning, directed toward a Big Picture, then organizations would run better and individuals would lead quality lives.

It’s All in How You Look At It. The New York Times. Bravo. Very insightful. Perspective is everything…continually changing, reflective and powerful for our future.

Look and You See the World Around You. Investor Owned Light and Power Companies. If one ages gracefully, they become more perceptive and enjoy life better. Otherwise, they stagnate. The choice is up to the individual (and any organization, as well).

Silence is Acceptance. Public service campaign to facilitate discussions about drug abuse. Many families abdicate responsibilities for parenting to schools, the community or to anybody but themselves. Organizations reflect their own lack of training about people skills and management issues. They either cannot or won’t try to teach what they were not taught. Managers tell employees what not to do and criticize them for being wrong. Yet, it’s their fault because ground rules were not adequately communicated, nor has mentorship occurred. Doing nothing causes much more organizational damage than making mistakes while operating in good faith. Silence (followed by harsh criticism) is the worst way to communicate.

We Make Money the Old Fashioned Way. We Earn It. Smith Barney. Business is a process, not a sure thing. Companies which are prepared to ‘go the distance’ will reap greater rewards, including financial.

Touches the Lives of Just About Everybody. General Electric. If more companies thought of the implications of what they do upon multiple constituencies, they would do a better job. Don’t think in the ‘micro.’ Think more ‘macro’ about who decisions and policies affect.

Life Is About Learning. Depends undergarments. Absolutely. Maturity is a process. Too many young people don’t know that, or care. Too many ‘mature’ people have ceased to continue learning. The really wise ones learn each year… in a continuum of experiences.

The mantle of greatness cannot be earned in a single summer or in a decade. Greatness is earned over an entire career. Rolex Watches. Yes, indeed. Too many people want the acclaim of their seniors but are not willing to do the things that their seniors did to get there. Wanna-be’s generally will not go the distance because they don’t take the time to amass skills for success. Those who achieve long-term do so because of a plan to succeed, commitment to their profession, people skills, community stewardship, participation in mentorship, ongoing professional development, self-fulfillment and a positive attitude.

Characteristics of Good Slogans-Campaigns and, thus, Company Philosophy

Focus upon the customer.
Honor the employees.
Show life as a process, not a quick fix.
Portray their company as a contributor, not a savior.
Clearly defines their niche.
Say things that inspire you to think.
Compatible with the company’s other communications.
Remain consistent with their products, services and track record.


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.