Matchless Opportunity
“This is the chance to catch your competitors napping.”
“Grab your weakened competitors’ customers ASAP!”
“Think positive!”
“One man’s disaster is another’s main chance!”
There was a lot of … unmitigated crap like that … going around as the financial crisis of 2007++ deepened.
On the other hand, I think there is an appropriate use of the word opportunity in tough times—and it’s a million miles from the nonsense above.
That is, a crisis is a pure (yes) and “simple” (no) … test of character. And perhaps one of the most important one or two or three such tests we’ll face in our adult lifetime.
And I think we should think about it that way.
Instead of leaping to “grab our staggering competitor’s customers,” maybe we should react with great compassion toward that competitor—not by paying his bills, but by making it clear that we have neither the intention nor the desire to rip his customers out from under him (or her).
Instead of “think positive,” try … “think thoughtful.” Mindless optimism is just that—mindless. We must deal realistically with the crisis—and, arguably, exhibit a level of decency that knows no bounds. Such behavior is neither “positive” nor “negative.” It is what it is: decent.
You get the drift, I’m sure. It is a time of matchless opportunity, a matchless opportunity … to exhibit character. (Or not.)
Sneaky fact is, such a display of character is probably damn good for business when the comeback occurs—people have very long memories of thoughtful behavior!
13. Boring Is Beautiful! (Or at Least It Can Be.)
I love Jim’s Group!
I love Basement Systems, Inc.!
Jim Penman’s Jim’s Group has been around for about 25 years. It all started with Jim’s Mowing—Mr. Penman’s way to feed himself while pursuing a Ph.D. I don’t know whether or not Mr. P. ever finished his Ph.D. But I do know that Jim’s Group is going on 3,000 franchisees in its home turf of Australia, and also in New Zealand, Canada, and the United Kingdom. There are barrels of awards to attest to the superior work the company does and the amazing opportunities it offers its franchisees.
Well, what does it do?
Stuff.
What kind of stuff? You know, stuff.
More precisely, the sort of “stuff” that busy people don’t have the time or the inclination to do.
Consider:
Jim’s Mowing Canada
Jim’s Mowing UK
Jim’s Antennas
Jim’s Carpet Cleaning
Jim’s Car Cleaning
Jim’s Dog Wash
Jim’s Fencing
Jim’s Floors
Jim’s Paving
Jim’s Pergolas
Jim’s Pool Care
Jim’s Pressure Cleaning
Jim’s Roofing
Jim’s Security Doors
Jim’s Trees
Jim’s Window Cleaning
If you want to know more, download What Will They Franchise Next? The Story of Jim’s Group (http://www.jimsskipbins.com.au/pdf/what_will_they_franchise_next.pdf).
Basement Systems, Inc., previously mentioned, is a fast-growing, $60-million-plus Connecticut-based business. Larry Janesky runs it. He’ll dry out your basement. (See his, yes, bestselling book Dry Basement Science.) The basement thus becomes a stellar storage area, or a non-damp, non-moldy, non-illness-inducing family room, or a spare bedroom—whatever.
Message: For would-be entrepreneurs, there’s more to life than biotech and Internet start-ups and “boutique” financial planning businesses.
Think dog washing!
Think dry basements!
Think any damn thing!
Message: “Not cool” can be very very very very very cool.
MIND THE GURU GAP REDUX
As I said before, there’s more to life than Big, Publicly Traded, “Sexy” Businesses—but you’d never know it from reading the work of most management “gurus.” Alas, I’m one of those gurus who knows the ins and outs of GE and HP—but not much about the other 80 percent or 90 percent or 95 percent or 98 percent of the economy.
For example, only recently did I bother to read Thomas Stanley and William Danko’s classic The Millionaire Next Door, originally published back in 1996. It talks about the successful people who run companies like Jim’s Group or Basement Systems, Inc. Consider, per Stanley and Danko, these attributes of the True Superstars of the World Economy whom they profile in their book:
They … lived in the same town all their adult life.
They … are the first generation in their family to achieve wealth (and they had no parental support).
They … “don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires.”
They … prosper outside the realm of “guru” glamour: “Many of the types of businesses [they] are in could be classified as ‘dull-normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …”
Yup, that’s the real, beyond-the-gurus economy.
And it spells o-p-p-o-r-t-u-n-i-t-y for any and all with guts and gumption. (And you can leave the MIT Ph.D. to the guy next door who’s not the millionaire.) (Indeed, the MIT Ph.D.s have their valuable place—but it’s not the only place. In fact, not the principal place associated with our economic welfare or excellence.)
14. “Old” Rules. (Yes, Even in the
“Age of the Internet.”)
“People turning 50 today have half their adult lives ahead of them.”
—Bill Novelli, 50+: Igniting a Revolution to Reinvent America
(Novelli’s assertion, in today’s New World of the Old, is obviously true … in retrospect. But I well remember first reading this—the impact was simply staggering. The “oldies” like me are just half done. That is surely not consistent with the behavior of today’s product developers or marketers—with veeeeery rare exceptions.)
Americans on average own 13 cars in a lifetime; 7 are bought after the age of 50.
(How about deriving a “code” to remind you of “all this”: 13/7/50.)
People age … 55 or older … are … more active … in … online finance, shopping, and entertainment … than those under 55 (Forrester Research).
Americans over 50 control a gargantuan share of the personal wealth in the United States. And are healthy. (And the $$$$ part remains the case post–Big Recession.)
And: American women over 50 … control an enormous and growing share of that enormous share of our total wealth.
The aging population opportunity is staggering in … North America, Oceania, Western Europe, and Japan.
The beloved “18–44 demographic” is wildly overrated as a desirable market.
Furthermore, there is no evidence that brand loyalties established in youth stick. (I made a list of about 25 brands I regularly used as a twentysomething. And today’s preferences. The overlap was exactly … Zero.)
My take on “all this,” as a Professional Observer and Card-carrying (AARP, Medicare) Member of the Modern Elderclass:
We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest-growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most (self-)indulgent, the most difficult & demanding, the most service- & experience-obsessed, the most vigorous, the most health-conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your Universe for the next 25 years.
We have arrived!
Are you acting accordingly?
If your answer is “yes”—congratulations, you are a rare bird indeed! (Perhaps 1 in 100.)
If your answer is “no”—what do you plan to do abo
ut it? In the next six months? In the next year? Two years? (Be precise in your answer.)
Do you understand that taking advantage of this ADWT (Amazing Demographic & Wealth Tsunami) will require a full-bore “cultural” and “strategic” “revolution” in your company?
And do you understand that this applies as much to the small biz as to the giants?
DUMB MONEY
A lot of dumb things go on in business. None dumber than these … two big omissions: effectively ignoring-underestimating the Women’s Market Potential … (See #100.)
And … effectively ignoring-underestimating the Boomer/50-Plus Market Potential.
In a word (two, actually): Stupid! Stupid!
15. Build Green Now.
(No Excuses!)
I believe it would be wise—for reasons that range from the geopolitical advantages of energy independence to the amelioration of global warming—to mostly give up our SUVs and quickly seek alternative forms of energy. But such issues remain controversial.
Green buildings are … not … controversial. (Or should not be.)
Becoming a Green Building Advocate-Practitioner is the ultimate no-brainer.
There is … absolutely no excuse … for not being a Green Building Advocate-Practitioner.
Thirty years ago we learned that “quality is free”—most were skeptical at first, but, done right, quality improvement saves money, as well as improving the product. Later, 3M gave us 3P. That is … Pollution Prevention Pays. That, too, proved accurate. The same is true for green buildings—new ones and the retrofitting of old ones, small ones and large ones. Expenditures are indeed required to achieve optimal energy efficiency and maximum green potential. But the overwhelming majority of evidence suggests that these investments will be paid back in the short to medium term. Moreover, in the spirit of manufacturing’s “continuous improvement,” there are a host of small steps that are free or absurdly inexpensive that move in the right direction that can be done …
Right now.
(On top of all the energy-environmental advantages associated with green buildings, there is also a raft of evidence demonstrating that worker productivity goes up … significantly … in green facilities. The long and short of it is that these facilities are more pleasant places to work.)
Admittedly, I am a trained civil engineer with an advanced degree in construction management and hence I find the topic to be great fun! But I would urge—beg—you to stick your toes in the water, perhaps via the written word. Here are a few of the texts I perused and enjoyed, all of which included numerous, compelling case studies:
Green Building A to Z, by Jerry Yudelson
The HOK Guidebook to Sustainable Design, by Sandra Mendler, William Odell, and Mary Ann Lazarus
Green Architecture, by James Wines
Sustainable Construction: Green Building Design and Delivery, by Charles Kibert
Enjoy!
Act!
Now!
Even if “just” your home office!
No excuses!
Immediate dividends!
BUILT TO … WASTE?
Here is the impact of our buildings on energy consumption, CO2 emissions, and the like:
Share of total energy used by buildings: 39%
Share of electricity used by buildings: 68%
Share of carbon-dioxide emissions caused by buildings: 40%
Share of raw materials used in buildings: 30%
Share of non-industrial landfill related to buildings: 40%
These figures add up to an opportunity of staggering proportions!
Source: U.S. Green Building Council (from Green Building A to Z, by Jerry Yudelson)
16. Bottom Line in Bad Times:
Obsess Over the Top Line.
Horst Schulze, the legendary former Ritz-Carlton chief, came out of retirement to launch a luxury brand of small hotels. In a 2008 Prestige magazine interview, he directly addressed, with aplomb, the issue of starting a new business during a recession: “I [will] not accept the explanation of a recession negatively affecting the [new] business. There are still people traveling. We just have to get them to stay in our hotel.”
This kind of attitude reminds us that instant, mindless cutting of R&D or training or sales force travel in the face of a downturn is often counterproductive—or, rather, downright dumb.
Bad Times?
Become Top-Line Hypermanic!
Cutting, cutting, cutting is typically Recession Obsession–Preoccupation #1. Cutting is probably necessary, but don’t let it stop you from becoming Born-Again Sales Hounds. With whatever tools you can dream up, redouble your time and effort aimed at increasing your business with existing customers—and maybe bagging a few new ones.
And this advice doesn’t just apply in bad times. I am obsessed with the top line. I want everything I do to scream “DISTINCTION.” And so I ask how every-damn-thing I do creates Brand Value–Distinction. I do pore over my P&Ls and savagely attack costs … every now and again … but the first item I eyeball is … GROSS REVENUE. If “GR” is growing at a healthy clip, then I know that all is likely well. Or, at least: not “bad.”
WHAT’S NEW? (“LEND” AN EAR!)
You ain’t gonna beat the likes of China on cost. The alternative, and there’s only one, is to sharpen your focus on Innovation and provision of memorable Experiences—and hence on Top-Line Growth. Instead of waiting to launch a new idea or business until “things get better,” or starting off every project with a focus on cost minimization, consider instead this quote from former Lend Lease (Australia) CEO Stuart Hornery: “Every project we take on starts with a question:
‘How can we do what’s never been done before?’”
Make Hornery’s Bold Question your automatic Question #1:
“How will this project enhance the Customer Experience in a way that’s so ‘dramatically different’ from our competitors that we capture new customers and retain old customers and grow our share of business with them. And markedly boost the ‘top line’?”
“THINK DIFFERENT” must be a full-time preoccupation in good times and bad. For starters (a big deal), that means constantly and purposefully exposing yourself to, and absorbing, diverse input.
Set up a lunch … TOMORROW … with someone new, from a different line of work than yours. Or spend the evening perusing articles on a topic way off the mainstream for you. Or invite the local grocery store manager to address your team in Purchasing or HR.
Keep the new inputs pouring in; they’re the best path to a sustaining top-line obsession, marked by a constant string of new products and services.
(Can you really constantly think about new and “dramatically” different? Isn’t it pie-in-the-sky? Isn’t it exhausting? Isn’t it “guru-babble”? In four words: No. No. No. No. That is, “surrounded by new inputs-ideas-people” becomes “the new normal.” It becomes odd not to be bombarded by new ideas and their proponents—from R&D to purchasing. Rather than “tiring,” it becomes Exhilarating—and an attractant to interesting people and hence a self-fulfilling prophecy.)
Resilience
17. Swan Dive: A Guide to Getting
On with Getting On.
I am mesmerized by the Black Swan.
Black Swan = Unpredictable Extreme Event, as described by Nassim Nicholas Taleb in his book The Black Swan.
We must live day to day, year to year, by gettin’ on with gettin’ on. Surprises aplenty are not so few and not so far between—and we’ve mostly learned how to cope and at least muddle through. But the Black Swan is different—a once-in-two-lifetimes affair. Our response-behavior-character in the face thereof will, as Taleb says, determine our life’s course.
Well, if we can’t plan for it because of its, by definition, “difference-ness,” and we can’t let it distract us 24 hours a day every day, what can we do? There are no surefire remedies, but there is a line of thought—and a single word—that may be of practical use. The word is … resilience.
To
deal with the absurdly unlikely, we can consciously think about and hire people and promote those with demonstrated evidence of resilience and, hence, perhaps travel at least some distance toward shaping our organization to be more or less able to respond to a Black Swan.
Below you’ll find some musings (no more than that) on the idea of resilience. These are raw—“key words” really, meant to do no more than get you musing on this topic.
Observable attributes of resilient people (worth considering in the hiring and, especially, promoting process):
Inner calm.
High self-knowledge (“comfortable in one’s own skin”).
Breadth of out-of-the-ordinary experience—drove a cab, worked construction, ran Alaska tours, did Teach for America.
Appetite for modestly controlled chaos (quite literally revels in messy situations—“comes to life” in them).
Reaches out effortlessly to a wide variety of people (in general and on the fly).
Exudes energy.
The Little Big Things Page 5