Archive for August, 2011
Every company has a CEO and every CEO has their own particular style. Some are self-made, while others have leveraged a bit of family clout to get their start. Some promote themselves, some promote their companies, while others (both intentionally and unintentionally) promote both. But what if that CEO, or their style, eclipses that of their company? What if the CEO becomes or IS the company? Does it change the way both are viewed in eye of the general public? Does it change the way corporations have to manage their operations AND their CEO’s? Here are 12 icons of business who have shaped their companies and careers above and beyond the competition. I’ve paired them together, with the excellent help of Alan Berkson (@berkson0) of the Intelligist Group to highlight both common traits and areas where they may differ. For your consideration… Martha Stewart and Ross Perot: Both iconoclasts whose brand is their name. Both were willing to push themselves into the spotlight, creating businesses through the sheer force of their own personal will. Both were also never willing to say “quit” – despite the uphill battles they fought. Ultimately, however, this trait – and their larger than life egos – became part of their undoing. Both became victims of their own success and the benefits/curses it brought in limiting their future activities. Lee Iacocca and Louis Gerstner: Two “hired guns” brought in to fix a business because they had celebrity status. Lee had earned his stripes helping to create iconic cars at Ford (both the Mustang and, ironically, the Pinto) – literally creating the then-modern day powerhouse Ford brand. Gerstner, on the other hand had a proven track record at American Express, McKinsey & Company and RJR Nabisco before being brought in to right IBM’s sinking ship. Both were willing to put their names on the line in the public light to take a broken business and turn it into something of value. The difference was that Lee rebuilt a better version of Chrysler while Gerstner built a new version of IBM. Oprah Winfrey and Larry Flynt: Yes, they actually pair well in several ways. Both have a “you either love them or hate them” persona and both have been driven by humanitarian/freedom issues. For Oprah, her history of giving is unique, as is her humanitarian mission through the “O” network, which has become more important to her than its entertainment value. Larry, on the other hand (despite a somewhat sleezy demeanor) has a passion for free-speech, and a willingness to push the buttons that drive others to action. Is porn his passion? No – it’s freedom of speech and the press for all of us. You may love him, or hate him, but it’s unlikely you haven’t benefited from his controversy in some way. Donald Trump and Richard Branson: Two men who clearly live larger than life. They live for both themselves and the celebrity that they create for themselves and their brands (both of which will survive long after their departure). People often underestimate the extent of the Trump empire, but it is vast, well managed and the man knows how to delegate. Branson is similar – the ultimate man of both business and delegation whose world-renowned exploits only enhance his Virgin brand (Virgin, by the way, became the name of his first record label because he and his partners felt they were “business virgins” – a brand he has built through Virgin Records, Virgin Atlantic Airways, Virgin Mobile, Virgin Trains, Virgin Express, Virgin Nigeria, Virgin America, Virgin Cola, Virgin Vodka, Virgin Galactic, Virgin Fuels and Virgin Media). Larry Ellison and Steve Jobs: Both are their company and their company is them. But while Larry also lives outside of his company, Steve has become one with his company. In contrast to Steve, Larry lacks the universal, almost cultish, appeal that Steve has attained. Could Oracle be where they are today without Larry? No. Could they survive without him? Probably better than Apple due to his strong promotion of others within the Oracle empire. His delegation is public and accepted – Steve’s is not – his fans, and Apple fans want him – Steve is Apple. Want proof? When Steve checked out of Apple, the company checked out. Apple has seen what life without Jobs can be like, and it wasn’t pretty. Unfortunately, this is a issue that they may well face in the not to distant future. Warren Buffet and Jack Welch: Two men driven by principle and discipline. For Warren (the ultimate Boy Scout?) there is a “Buffet Way”. For Jack, there is the “GE way”. Both ways have a common trait – We’re either #1 or we’re out. Both grew their empires through investing in other businesses with very strict criteria – neither take risks and they both tend to view the world from a “risk does not equal reward” perspective. So how does your CEO fit into this mold, or are you a CEO that see’s yourself in one of these individuals? Either way, it makes for an interesting time around the board-room table.
Almost every action, choice or decision we make is the result of “influence” in some particular way. Even our personal preferences are shaped by influence, perhaps through the actions of others (“hey, you should really try this out”) or perhaps through our own past experiences (“I don’t care what you say, I’ve tried the bagels at that deli and they just don’t cut it for me”). Peer-pressure, marketing, advertising or even a desire to try something different based on past experiences are all forms of influence that shape our lives. DIRECT vs INDIRECT INFLUENCE Nowhere is the impact and value of influence more evident than in the world of business, as businesses are continuously trying to influence their target audience (customers) and partners to their benefit. When it comes to business, there are two different ways that a business or an organization can reach or influence its target audience – direct and indirect. Direct influence is when a business specifically targets or touches their target audience – it is a direct “us to you” type of interaction and gives the business the most control over their message (it’s a one-step connection).
The difference between direct vs indirect influence is like the campfire game – what you tell one person may not be what they tell the next…Indirect influence, on the other hand, is a bit more of a challenge as it involves a third-party (and intermediary influencer of sorts) that the business needs to influence in the hopes that the third-party will in turn influence their target audience. UNDERSTANDING WHO INFLUENCES, AND HOW If we take a look at the different organizations within a typical corporation, we can see how they influence the organization’s customer base. Direct Influence Groups
- Sales directly touches the customer through personal 1:1 interaction. This is the front line, where the influence of a sales strategy & pitch (or even an individual sales rep) can be the most directly measured.
- Marketing touches the customer base en masse (although sub-segmentation usually occurs to a great extent). Their goal is to directly convey a corporate or product image, create demand and literally influence a customer to think about their product or service. Measuring the success, or influence, of a marketing campaign is possible, but not quite as easily as the direct 1:1 interaction of a sales rep.
- Business Development touches organizational partners. When it comes to building partnerships and team-oriented strategies, business development is the functional equivalent of sales – it is almost always a 1:1 pitch and its effect can be immediately measured.
- Customer Service touches existing customers. When the customer has a problem, customer service can not only help resolve issues and answer questions, but can, on a 1:1 basis, help influence how a customer uses a product/service, how they perceive the company in general and, potentially, influence future sales.
- Analyst Relations (AR) involves the process of interacting with, and influencing, industry analysts, who in turn have the ability to influence their clients and followers (your target audience). Measurement of this influence can be difficult.
- Public Relations (PR) targets the press and media (print, online, bloggers, etc.) with the goal of influencing these groups and individuals to share information with, and thus influence, their readers (your target audience). The influence of PR campaigns is often measured by the number of “mentions” a firm has, or by a post-campaign outreach to measure public (potential customer) awareness, or (if the PR campaign is designed to improve the value of a tarnished brand) consumer sentiment.
- Investor Relations (IR) has a similar role to AR, in this case dealing with financial analysts and investment firms with the hopes of shaping a positive image and value proposition about your firm, which they hopefully will share with their clients, resulting in a healthy stock price. Measurement of IR value often (and somewhat unfairly) is measured by stock price or analyst recommendations alone, and not by increases in consumer sentiment or sales (while the financial analysts and investment firms may not directly interact with your target audience, it is hard not to connect the dots between a poor/falling stock price and the reluctance of consumers to purchase your product – nobody today wants to buy from a business that is viewed as financially at risk).
- The C-Suite, who has the ability to make or break a deal, to influence their entire customer base or investor community with a single sentence (think of the power and influence that Steve Jobs has by merely showing up at an event!).
- The Customer – perhaps the most influential group of all, even if they are outside the core corporate structure (a perspective, by the way, that I think is slightly off-base: the customer should *always* be considered part of the complete business organization). Their ability to drive your business should be both welcomed and never underestimated.
All influencers are equal but some influencers are more equal than others…So let me pose a few questions – knowing full well that the answers will vary between industries, markets and economic business cycles…
- Are all business groups equal when it comes to the value of their influence?
- Are certain types of corporate influence more effective in *gaining* new customers?
- Are certain types of corporate influence more effective in *retaining* existing customers?
- With a limited budget, where would you focus your resources in building a strong corporate influence strategy?
- Is it possible for all of the different business groups to effectively work together to form a culture of “fluid corporate influence” that operates as a continuous feedback loop, or are there just too many barriers and silos for this to take place (Bonus points if you can give me an example of a firm that does this today!)?
There was a time when the phrase “check-in” was associated with things like the front desk of a hotel, the ticket counter at an airport or the main entrance to a conference center (“gotta go check-in and pickup up my badge to show that I’m a speaker and didn’t actually have to pay to get in like everyone else…”). But with the advent of social media and location-aware applications, the phrase “check-in” took on a totally new, and much simpler meaning: “I’m here”. And now, I believe, it’s meaning might be about to change yet again, from “I’m here” to “here’s why”.
The evolution of the social check-inThe social check-in has been around since before the days of the pony express – we used the available media to tell our friends and loved ones that we had arrived at a particular destination. We were not only there, but we wanted them to know we were safe. It was a basic, and necessary, part of life as the world expanded around us. But with the arrival of social media, businesses began to realize that the check-in could be something more – it could be entertaining, it could be fun, it could be competitive and it could drive business. Companies like Foursquare, Shopkick and Facebook gamified it, made it competitive and engaging, turning it into something that they hoped would drive their business, or the business of others (check out my post on Gamification and the Gaming of Foursquare for some background on that topic). And to an extent, they were right. Checking-in was Fun! You could check-in to your favorite coffee shop, broadcast it to the world and even get points, perhaps a discount on a cup of coffee or become the Mayor of Anywhere. But what really is the value of being the Mayor of some local hangout? Not much, except perhaps the bragging rights within your own social graph (example: I have a couple of friends who are on a mission to see who can check-in to the most Starbucks).
Most of the people I know check-in to engage with their friends, or to simply let them know what they are doing or where they can be found. Businesses assume that a check-in to their location is an endorsement, that they’ve captured another “potential customer” (a concept that my friend Alan Berkson, @berkson0 of the Intelligist Group, would argue is “so last century”). In fact, I’ve seen more than a few people check-in with comments like “worst service ever” – so perhaps that endorsement isn’t quite as real as many people think (ironically, with Foursquare you can check-in, add a negative comment and still get your points – an interesting way of making YOUR point, especially if you rebroadcast that check-in through other, much larger, social media networks). And it is here, where people are starting to use the social check-in as a statement, as a way to question what they see around them, that I think we are approaching the point where the check-in can become so much more than it is today.
I’m not sure people care about social check-in points or likes as much as they used to.
The 4 components of the new social check-inThe emerging social check-in has four basic components (let’s toss aside points, likes, mayorships, etc. for a moment). They are:
- The personal check-in itself (somebody deciding that they want to check-in to a particular place/event/etc. and share it with their friends),
- The place/event/etc. where the check-in occurs (which could be a fixed location or a time-sensitive event),
- The people within (or in some cases peripheral to) the social graph of the person who will see the check-in, and (most importantly)
- The statement or comment that the check-in conveys to those who see it (the *influence factor* of the check-in).
Let’s check-in to social causesA couple of months ago, I had the opportunity to chat with a few people inside the social check-in space. It was an informal chat that got me thinking about the value of being able to check-in to “social events”, not just businesses. When I came across the “Old Guy” Foursquare check-in, it sparked an interesting thought – we have the opportunity put real meaning behind check-ins. Consider the following:
- Checking into “certified” Social Events would be a good thing. With most check-in tools, you can create your own locations, so setting up a location for a charity event is possible, but it isn’t necessarily time sensitive and doesn’t necessarily mean that the event is an actual charity (social good) event. I think we can improve on this.
- Checking into a Social Event *remotely* (to show support for the cause) would be an even better thing. Call it a “like” or a “support” – but letting people express their backing for an event – while it is taking place – is something I consider worthwhile.
- Checking into a Social Event (either on site or remotely) and being able to *donate via PayPal* would be a great thing. You’ve got my attention, you’ve got my support, why not give me the opportunity to contribute?
For an out-of-the-box insight on the whole notion of generational check-ins and the impact of pervasive social connectivity, check out Alan Berkson’s excellent post Turn On, Check In, Hang Out!Photo courtesy of Travis Nep Smith