The Quest for Mediocrity: Guides for the Cautious Manager

The only true mission of any organization is survival.  Companies where “excellence” is embedded in its culture are invariably in the spotlight, run by overachievers and are candidates for hostile takeovers. Companies that live by tidal trends will sink or swim, and frequently drown in the undertow.  

But our computer simulations prove that survival correlates best with unobtrusiveness, and all major trends are doomed to collapse from their own weight. Survivors coast under the radar.

Therefore, we are pleased to offer these “Guides for Cautious Executives” who yearn to stay in the back of the pack.  Mediocrity, once achieved, cannot be denied.  It will carry a company through thick. 

We asked what organizations are truly mediocre models.  Our average panel voted these companies, brands and entities to be unexceptional: 

• Ford
• France
• The Pirates
• MSNBC
•  Kmart/Sears

 We examined them carefully, and concluded that they will probably live long lives, unconcerned and oblivious.  Can you think of some more living mediocrities?   

Cautious managers are not in the limelight. We have a process that identifies nega-trends, based on the Principle of Omission. We studied whatever is not in the news, what is not a fad.  We have proven that nega-trends, once identified, can be used to justify the most comfortable course.

Combining the habits of the most mediocre institutions with nega-trends, we’ve come up with eleven immortal “Guides for Cautious Executives,” If you observe them dispassionately, you can achieve everlasting indifference.

Here are the first five. We don’t want to overburden you cautious ones, so we’ll save the last six for the next issuance.

1. Innovation: There’s nothing new under the sun. Innovators are degenerate boat rockers.  The patent office should have closed a century ago, because there is nothing left to invent.  New products are for high rollers; you should “Know when to fold ‘em,” and that’s now. Don’t try anything new and risky.

 2. Human Resources: The touchy-feely black hole. People are the way they are and you can’t change them. You shouldn’t try.  Watch out for today’s fads, such as “Talent Management” and “Succession Planning.” These are the fruits of the educational “Self Esteem” movement and, heaven forbid, could lead to “Social Computing.” Don’t try to understand people and change them.

 3. Solution Selling and Customer Relationship Management: No match for a shoe shine, a cigar, and a smile.  If your salesmen talk like psychologists, they will drive you right to the couch.  Good ol’ boys are the way to go. Your customers should just buy your products, not you.

 4. Strategic Planning: Contemplating the Corporate Navel.  Mediocre planning must be pure, uncontaminated by mention of implementation or accountability.  We must fight the alarming tendency to shorten the time-frame of planning.  Forget about the next three years and concentrate on the far future, when things should calm down.  Remember:  

• Planning should be done only by planners, not doers.
• Any plan of less than a ten-year vision is an exercise in expediency.
• Communication of the plan should be limited to those empowered to revise it.  Broader exposure can cause corporate unrest.

 5. Corporate Culture: A Bias for B.S.  Action is the natural enemy of mediocrity.  Therefore, a company that has a bias for action will operate in the high-risk mode.  Fortunately, action can easily be diverted into pointless activity, and activity diffuses into B.S.  When this becomes ingrained, managers need not worry about such ugly phrases as “task orientation” or “management by objectives.” Some tips:   

• Preach and live the doctrine that contemplation is the highest calling.
• Leave no stone unturned.  If all are turned, turn them back. Further study is prudent.
• Always play for the tie.

Think about these five Guides.  Start to slow down.  Next time we’ll  reveal more.

George Lemmond

If Present Trends Continue, That’ll be the First Time

Trends are fickle.  They seem unstoppable, but something happens. They end up falling by their own increased weight, they get tired, or someone comes up with a better idea. They aren’t irresistible forces after all. They get overtaken by events.

 The ancient Persian proverb says, “Even this shall pass away.” The smart money says, long term bet against the trend.

 Up until now, I agreed with that.  Americans’ nature, fearlessness and ingenuity will find a way to thwart any problem.

But there’s a current problem that I don’t see an answer for, short or long term.

I haven’t heard of the solution for rising oil and food prices.  Have you? I don’t have faith that our politicians will find a way out.

 If there were a way to harness all the talents of our private sector’s entrepreneurship and creativity, we would come up with brilliant, breakthrough answers. 

Imagine you were on a team whose mission was to stop those rising prices. You have no restrictions, no boundaries. Turn your imaginations loose. And imagine if you could tap into all the greatest brains in history—Edison, Newton, Bill Gates, Lincoln, and all those hidden inventors working in their garages.  What would they come up with? Ethanol and wind power won’t do.

 We can’t just muddle through. Some people out there are out to get us. We must have ideas and will power.

 So will this be the first time that present trends will continue? They can’t. Three hundred million Americans can’t let that happen. Twenty years from now will we be able to look back and say we rose to the occasion, or that we went quietly into the night?  Your ideas?

Speech is Free, But an Audience Will Cost You

“Say whatever you want, anywhere,” said the professor, “But I don’t have to listen.”

Freedom of speech is constitutionally guaranteed, within some limits. A person can’t endorse the violent overthrow of the government, libel his neighbor, or shout fire at a rock concert. An advertiser has to be able to prove his claims.  (A politician? He can say anything. Truth has nothing to do with it.)

 To be heard, you have to earn it. Deaf ears abound. Advertising is a numbers game.  You can buy rating points or circulation, but not listeners or readers, certainly not believers. The value and importance of your message will determine its delivery.

 Is that fair?  Shouldn’t every product or cause have equal chance?

Well, they do.  You can but time, space or a theater. What if nobody came?  (You can always rent actors or paid mourners.)

 There’s talk of bringing back the “Fairness Doctrine,” which dictates that radio stations must give “balance.” That means airing equal time for opposing viewpoints. The problem (among many) is that equal time doesn’t deliver equal amounts of listeners. For some unknown reason, conservative talk shows attract far greater audiences than liberal hosts. So if stations have to make time available to each, their audience would shrink.  And so would advertising revenues.  So much for fairness.

 The justification for the “Fairness Doctrine” is that since radio frequencies are limited, the government owns them and can license them. Ergo, they can police and control their content to assure equal access to all points of view. But what does that mean—equal number of listeners, the same time slots?  Who will monitor and decide?  And where will stations find liberal talk masters that will be as popular as Sean Hannity and Rush Limbaugh? So much for free speech.

 If the government does this, somehow varying causes will find a way to be heard. Unless the internet is the next thing to be regulated—-.

George Lemmond

 

Georgia Generals Kick Off Season Opener July 12th in Johns Creek!

For those of you who do not know, North Fulton has it’s very own football team called the Georgia Generals.  They are a minor league football team which plays at Northview High School, located in Johns Creek, GA.

This Saturday, July 12th marks their season opening game vs. Macon Tiger cats.

If you are looking for a great place to take the kids and have fun this Saturday, stop by the game and see what all the buzz is about.

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Here is the press release for the game:

DJ Shockley to Help Kick-Off Georgia Generals Minor League Football Season this Saturday July 12^th in Johns Creek

This Saturday, July 12th, the Generals open the 2008 season in Johns Creek vs. the Macon Tiger Cats. After posting an impressive 9 - 3 record in the inaugural 2007 season, the Generals look to improve in their second year and again march into the NAFL playoffs. The Tiger Cats, also a 2007 playoff team, will surely prove to be a tough opponent.

Both Georgia Bulldogs and Atlanta Falcons fans will be thrilled with a pre-game appearance by Atlanta Falcon quarterback D.J. Shockley who will be performing the ceremonial coin toss to start the game.

 Halftime festivities will feature the introduction of the 2008 Georgia Generals Dance Team and a performance by Atlanta’s Old School Drumline.

Gates open at 5:00 p.m. and kickoff is slated for 6:30 p.m.

Tickets for this game are available at all Ticketmaster outlets and online via ticketmaster.com. Kids ages 12 and under wearing a sports jersey will get free admission.

The Generals play their home games at Northview High School in the north Fulton city of Johns Creek.

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The website for the Georgia Generals is here:  Georgia Generals Football

If you would like to meet the coach of the Georgia Generals (Nathan Gibbs), please click on the video below.  Nate discuss the Georgia Generals and who they are, what they do and what you can expect at a game.

The Peachtree 10K A Branding Mega-Success

The running of the 39^th Atlanta Journal-Constitution Peachtree 10k Road Race is over, and as usual I didn’t win.  But as a marketing man, I was struck by the enormous scope of the event and the vast implications to the sponsor and to the city of Atlanta. 

If you listed some qualifications of a winning brand, this 10k has them all:

1. Total Awareness. You could not be unaware that it was happening.
2. Immediacy. TV cameras, helicopters, clocks, real-time energy.
3. Involvement. 55,000 citizen/runners, thousands of volunteers, untold numbers of watchers and rooters. 
4. Loyalty. The most frequent conversation starter as we waited to begin was, “How many times have you done this?” Many answered, “At least 10.”
5. Good Will.   Comrades all in a pilgrimage, a journey to the unknown. And a lasting warm feeling.
6. Good planning and communication. It seemed like everything was thought of.
7. Rewards and benefits. Self esteem, bragging rights, good health, fun.  What more could a brand offer?

Can an event such of this be called a “brand”? Well, it has uniqueness, longevity, and dividends to the owners. It has a lasting value to the AJC, and to the whole metropolitan area. If it were not continued, it would be missed.

Here are a few random observations that may or not be related to branding or marketing:

1. I didn’t mind waiting. My group didn’t start until 9:00, but the fastest ones began at 7:30. I usually don’t suffer delays gladly.
2. I didn’t mind walking a half mile from the finishing line to where I got my T-shirt.  How many brands enjoy that kind of forgiveness?
3. I identified with the participants. I felt part of a team, young or old, male or female. (I noted and don’t understand the proportionate lack of ethnic minorities. I do understand the scarcity of the obese.) 
4. I felt good and righteous. Despite the fact that I trained and hydrated according to instruction, my knees still hurt hours after the fact and I vegetated the rest of the day. But I was proud, and resolved to do better next year.

 My only advice to the operators of the Peachtree Road Race is that it is not broken, so don’t fix it.  Tweak it a little. This brand is a treasure.  

George Lemmond

EMORY JOHNS CREEK HOSPITAL ENTERS THE WORLD OF THE BLOG

FOR IMMEDIATE RELEASE                                                                                              June 23, 2008

Johns Creek, GA –  Emory Johns Creek Hospital is the first hospital in the area to embrace social media and Web 2.0 in its marketing and communications strategies. Web 2.0 is the reference to the understanding of the importance and impact of the internet as a viable and powerful platform.  The hospital launched its blog as an extension of its website earlier this month and began the first in a series of video clips featuring physicians and administrators.   “Traditionally, healthcare marketing has been pretty stodgy in its approach, choosing more conventional mediums and messaging,” said Johnel Reid, director of marketing for the hospital, and a member of the Advisory Panel for the Society for Healthcare Strategy and Market Development, an agency of the American Hospital Association.

Healthcare is as competitive as any industry, and more complex than most.  Certificate of need laws, the consolidation of hospitals into large, multi-facility systems, federal laws governing physician relationships and marketing, healthcare marketing can become very complicated.  “We know that we are in a highly competitive market,” said Reid.  There are so many choices for advertisers, the trick is finding one that’s effective at reaching your audience.    “We are fortunate because our leadership embraces the experiment – we are able to try new approaches based on what we know about our community, and then develop what works,” said Reid. 

The Emory Johns Creek blog has already generated interest and traffic numbers continue to rise.  “As we add more features and video, we envision the blog becoming an interactive forum for our patients, physician and community members,” said Reid.  The hospital worked with Scott Dunn, of Town Planner Calendar, to produce the video series.  “Scott has been a real advocate of pursuing social media – and using the internet to find creative ways to reach our audience,” said Reid.  (CLICK HERE to see the BLOG)

“Emory Johns Creek continues to push the ceiling and we’re very proud of that,” said John Quinlivan, ceo of the hospital.  “We are committed to bringing the latest and greatest not only to our hospital in the clinical sense, but in every other area, as well.  Utilizing new technology – from our imaging and surgery departments, and now to our marketing efforts – is central to our mission.”

Emory Johns Creek Hospital is known for its state-of-the-art technology in a luxurious, hotel-like setting.  Services include emergency care, state-of-the-art all digital imaging including a 64 slice CT,  The Birth Place with Level III Neonatal Intensive Care Unit, 24-hour anesthesiologists, intensive care, advanced cardiac care, rehabilitation services and women’s services.  Emory Johns Creek Hospital is home to the Atlanta Bariatric Center, designated a Center of Excellence by the American Society of Bariatric Surgeons.

For more information, or to find a physician on staff at Emory Johns Creek, please visit emoryjohnscreek.com or call 678.474.8200.      

 

                                                                    

That’s a Great Idea. But I’d Rather Have One That Works.

A nutritionist came up with the ultimate dog food and his co-workers liked the idea, but it flopped. Nobody tried it on the dog.

 You should shove a thousand pounds of “attitudes” and trade them for an ounce of behavior, if you want a product success.

 An article in the WSJ talked about some great new design successes, and they all had one ingredient: they came from product users, not from an engineer’s dream. 

• Women said that a golf club maker’s six iron carried farther than their four iron.  So the line was redesigned so each club worked the way it should with women - not with strong teen-aged men.
• An auto maker discovered that the Chinese cared more about the comfort in the back seat than in the front.  They then reversed the priority in the design.

  Some others are still learning.  

• Segway predicted sales of up to 100,000 a year, but they average under 10,000. “People found them impractical and couldn’t use them to replace driving, walking or biking.”
• The Susan B. Anthony silver dollar (1979) was supposed to replace dollar bills, but no-one wanted to carry more coins.  “That’s  why people have bowls full of change in their dressers.”
• A dozen German car execs came over and virtually lived with American drivers.  They were astounded. We didn’t think of our cars as an ultimate driving machine, but as our living rooms.  Why?  Because America is big and it takes longer to get there. Voila, and duh!

  I was asked by a restaurant owner to re-invigorate his sales plateau. I studied his operation numbers, looked at his traffic patterns, and considered his attitude research.  I had no good ideas.   So I sat in his place—ate, watched and listened.  Then the lights turned on for me.  It had too many choices, and the essence was hidden behind an abundance of signs and clutter.  So my “marketing plan” consisted of simplifying the menu, tossing ¾ of the signs, and having an intensive effort against the hundreds of employees in the adjacent shopping center.  

The sales took off to the point where the owner has enough revenue to attract a buyer and sell the joint!

 This is called “embedded” research, sort of like “embedded reporters” in the war zone, where the journalists eat, sleep and suffer with the troops.

 If you don’t want to, or don’t have the money to fund a big survey or a bunch of focus groups, there is a better way instead.  Try investing quality time with you customers. They have answers that will work.

George Lemmond

What’s the Difference Between a Brand and a Branding Iron?

In the very old days, ranchers and farmers were victims of horse and cattle thieves. Hostilities and bad feelings resulted. Some of that still exists.

To protect their property, the owners seared their names, or a unique mark, into the hides of the livestock.  (Done humanely, of course.)  That way, all would know what was whose. This “brand” said, “Hey, get your thieving hands off of that—it’s mine!”

So branding started out to be a symbol of ownership.

Now it has changed horses, so to speak.  The buyer has become the co-owner of the brand. When the horse’s owner wants to sell, if he’s honest and trustworthy, he’ll vouch for the beast: it’s of high quality, and you can count on it!

That’s what brands are about now. A promise, based on the deserved reputation of the seller.

What is your brand?  Is it for sale?  Compare yours with a no-name—a generic product in your category.

I ask my students— What would happen if brands were not allowed?

• A few would say, “That would be good! Everything would be equal. The so-called brands wouldn’t be able to hoodwink us. It would a level playing field.”
• But most reflect and say, “Bad news.  You wouldn’t know what you are getting. Buyer beware!”

Should there be just one car company, one soap company?  Would that be “fair”?  Well, would there ever be any improvements, anything new? Can you imagine a generic fan club?

Brands bring life and trust.  Building a brand can be painful at first, but it’s worth it in the long run.

 George Lemmond

What Is Your Brand and Company Worth?

Are you thinking about an exit strategy?  Is your biggest asset—your nest egg—wrapped up in your brand and your company?  (For most small and medium sized companies, the company has become the brand.)

Your Brand Equity is simply what it could sell for. Look at it from the other side of the table.  If you were considering two brands to buy—each competes in the same field and has about equal sales.   How would you choose?

My measure of Brand Equity is how much the brand will be worth in the future, not what it could be liquidated for now. So you would choose the one that you could bank on (!) to produce the most growing profits for a long time. Here are some things you should compare: 

1. What are their trends on sales and profits, and other assets and debts?
2.  How strong are their products?  Any differences, any patents?
3.  How strong are their organizations?  Hirable?
4.  Most important—what is each of their Brand Franchises?  And that is–    

                       —How loyal are their customers?

                       —How enthusiastic are they? Would they care if the brand disappears?

                       —What is their Brand Positioning? Is it unique and sustainable?

A brand is nothing more than a promise. It’s what you expect when you buy it, based on previous consistent performance. What is your promise?

 So what is your brand worth?   Is it as much as your competitors? If this was a horse race, who would you bet on?

 The key to increasing Brand Equity is not just bigger sales.  It’s building a stronger brand. That is your greatest asset, the one you should nurture, the “family jewels” that will give your nest egg the most value.

George Lemmond

The Black Hole of Marketing is in the Middle

A perceptual map of any category will include a few dominant players, some specialty niche entries, and a lot of losers who are destined for oblivion. Some of the latter will go silently in the night, but a lot will expire violently, with a big bang as they get sucked into that black celestial hole. 

Just as a star system expands too fast and collapses into itself with such gravitational attraction that not even light can escape, a swirling, whirling vortex of a seemingly liquid business can suddenly spiral down the drain.

The poet Yeats said, “Things fall apart; the center cannot hold.”  The center is untenable. The biggest brands usually have a big enough base to straddle the middle. The specialists cling to the edge. The rest have one of these characteristics—

1. They try to appeal to all sides, but they don’t have the wherewithal to stretch that far.
2. They have a niche, but no exclusivity.
3. They strangle themselves by hiring poor employees.
4. They fall easy prey to stronger players who delight to under-price and out-service them.

The drown-ees are stuck in the middle of the pool, can’t swim, have no life-preserver and no paddle. 

 Here’s what they need to do:  

1. A Persian proverb says, “No matter how far you’ve traveled down the wrong path, turn back.
2. Cut your losses and begin again. You’ve already stopped to smell the roses, so act.
3. Get back to basics and create a useful brand. Pick an edge to the perceptual map and latch on to it with a strong product and appealing positioning.

There’s a big enough place for you.  But it’s not in the middle.

George Lemmond