UNIVERSAL VISION

I don’t know the key to success, but the key to failure is trying to please everybody – Bill Cosby

I had a meeting with a nice gentleman the other day who is working on the branding of his company. I was a bit alarmed at what he said. It was obvious that this person wasn’t exactly clear as to what Branding means.

He is in the restaurant industry and said to me,

“We can’t be sure the age of our customers or who they are so we can’t decide on what kind of food we will serve, we just have to make sure that the food we serve always tastes great.”

Well, yes and no. He can’t decide what kind of customers he’s going to get or their age. That’s true… But if he thinks he is making things to please everyone, he certainly can’t do that either. He’s wrong there. Also, if he’s thinking is that his only competition are other restaurants, then he is dead wrong on that issue too.

I’ll explain why in a moment.

Just like the old adage that Bill Cosby made into his own above, this kind of thinking is a time proven key to failure. It astounds me that to this day, with all the many example around us on why this sort of thinking doesn’t work anymore (please think: Apple, Google, famous fashion makers, etc.) When you try to please everyone, you please no one. This is obvious and has been repeated over and over again throughout history since the Industrial Revolution. The serve-all method is a sure-fire way to fail.

Here’s why…

The success of corporations like Coca-Cola, Apple, Google and Mercedes Benz, just to name a few; proves that specialization is the key to success in this day and age.

The sushi-ya is good at what they do. “But they can’t be sure of the customers or their age!” Should the sushi-ya now add Chinese Food, Hamburgers, Indian Curry, etc. to the menu? Of course not!

There are lessons around us everywhere. Let’s look at the restaurant industry for an easy example. Quick name one highly successful and profitable family restaurant? Denny’s? Nope. They are rumored to be on the verge of bankruptcy. How about in Japan? What others are there? There’s Gusto and Jonathans and Skylark to name a few. All rumored to be nearing bankruptcy. Skylark did go belly up.

How about Royal Host and Sizzler? Well, the Royal Host chain isn’t doing well, but is better off financially than Gusto and Jonathans… Why? They own Sizzler in Japan.

Sizzler?! Well, yes, folks, Sizzler is doing well in Japan, thank you. Why? They specialize. They realized years ago that they needed to set themselves apart from the others in their market space. Sizzler is a steak house and its steak meals start at over ¥3,190 a plate! (about $35.77). Sizzler may be considered a family restaurant but they are doing all they can to destroy that image and change to a higher end steak restaurant.

That’s Branding. That’s smart. That niche marketing.

Branding is doing thorough market research and then focusing on one part of the market.

The example above I gave where the boss said, “We can’t be sure the age of our customers so we can’t decide on what kind of food we will serve, we just have to make sure that the food we serve always tastes great.” He is so completely wrong on that point that it makes me wonder if he has ever bothered to read any books on Branding and Marketing? Or, does he even understand the concept? I don’t think so, that sort of thinking is like something out of the 1950s.

Let me get back to that point and prove to you why the other restaurants are not his only competition in this day and age and why trying to please everyone will fail with a simple example.

Imagine: It is your free time, say lunch time. You have one hour. There are so many things for you to do and to choose from on how you spend your one hour. You could go shopping or you could go to the gym, or for a walk, or to a coffee shop. You could go to a book store or meet friends, you could listen to music on your iPod or iPhone or Android or at a record store nearby. You could eat your own homemade lunch or, you could go to a restaurant. The choices are endless.

But, since it is lunch time, and you didn’t bring your own lunch, you are hungry.

In your immediate area there are 5 family restaurants. There’s the Denny’s, the Skylark, Gusto, Jonathan’s or Royal Host… Those restaurants have everything, but I’m sure you’ll agree that even though they do have everything, everything is not particularly delicious.

Besides the above, there’s also a plethora of choices. There’s a McDonalds (Definitely a niche restaurant), a standing soba shop, a delicious sushi restaurant, Chinese food, Indian food, Korean Barbeque, Japanese lunch of baked fish and miso soup, Wendy’s, Pizza, etc…

Now, it’s not rocket science but most people would go to the specialty shops.

“How to triple your users and sales by doing just one thing…”

This movement of the market and people’s tastes have dictated why this science of Branding is so very important.

Once again, take Apple Store for example. What if they thought that, “…there’s all sorts of people who come here of all different ages. We need to please them!” Do you think Apple store would then start carrying Epson printers and ink cartridges? How about printer paper and office supplies? Should Apple start carrying Android phone or old-fashioned cell phones to please the older crowd? See? If one were to stop and think about this for just one second, they’d realize the absurdity of not specializing towards a niche market…

And, I’m sorry, food, music, fashions, etc. are all very broad topics. Anyone who thinks they can’t be treated in a scientific fashion for Branding purposes simply just hasn’t been paying attention.

For more on the Scientific Method and how Branding is a science, may I recommend: Brands and Brand Management – Contemporary Research Perspectives

From the publisher review: “Very few books exist that meaningfully integrate the rich and vast body of scientific research and theories that have accumulated in the field, relating to both traditional and contemporary topics in branding. This book accomplishes that task, with contributions from leading experts in the science of branding, national and international. The book should appeal to all students, faculty, and marketing professionals with an interest in research findings about brands, and an interest in deepening their understanding of how consumers view brands.”

Thanks to Kevin Riley for the TED link.

The government in this country is leading us to financial catastrophe. You can’t make this stuff up.

I can’t believe that the people – as well as financial commentators in Japan -aren’t up in arms about the latest financial plan from prime minister Shinzo Abe. I can see how the average person couldn’t figure this out, but it is simple math. How could most commentators on economics in Japan be so clueless that they can’t see the glaring problem with this latest plan?

First let’s look at the plan.

Bloomberg reports:

The Japanese government will spend 10.3 trillion yen ($116 billion) to drive a recovery from a recession in Prime Minister Shinzo Abe’s first major policy initiative to end deflation and boost growth. Enlarge image Shinzo Abe, Japan’s prime minister, speaks during a news conference at the prime minister’s official residence in Tokyo, Japan. The Japanese government will compile a 13.1 trillion yen extra budget to help pay for the stimulus program, according to the statement.

About 3.8 trillion yen will be for disaster prevention and reconstruction, with 3.1 trillion yen directed to stimulating private investment and other measures, according to a statement released today by the Cabinet Office. Extra spending will increase gross domestic product by about 2 percentage points and create about 600,000 jobs, the government said.

The article shows a construction worker and some other feel good images. But, like I said, the problem is simple math, folks.

How could the government spend $10.3 trillion yen (about $116 billion dollars) on creating inflation (thereby destroying the value of the currency) and 600,000 jobs?

First off everyone knows that the government does not create jobs. The government can only take money from the productive part of society (taxation of private industry) and redistribute it to the non-productive part of society. But my issue is not with this point.

The point is this, and I said it is simple math: How can the government justify taking this money from private industry in order to create jobs at the cost of ¥17,166,666 (about $193,333.00 dollars) each?

How can they justify that? Wouldn’t it be MUCH better to allow private industry to keep that money and hire their own people?… Oh, yeah, I forgot… If they don’t take the tax money, then they can’t pay their middlemen friends.

Did I say that Japan’s economy is doomed? Where are the reporters and economists to point out this problem that cannot be more difficult than third grade math…

That’s why math is such a bitch, the numbers tell the truth.

Johnny’s wife was pregnant. She was due any day. Johnny worked hard taking care of his other kids while the wife went through a tough labor. Still with all of that, Johnny also kept doing a great job at work.

The office where Johnny works has had lots of changes recently but the boss caught Johnny in the hallway one day. He said,

“Johnny! Let’s get together with the gang and have a beer and talk about how to make the company better!” Johnny was very pleased.

Johnny had been talking about the pregnancy and the baby everyday at work for two months. The day the baby was born, Johnny diligently stayed up at night with his wife until the child was born, yet was still promptly at work the next day.

Johnny is, after all, a professional.

The day of the birth, congratulatory wishes were given to Johnny from everybody…. That is, excepting from his boss at work. The bosses said nothing.

The next thing the boss did say was that Johnny’s job was terminated.

Johnny went ballistic and walked out.

Later, Johnny’s boss asked me where Johnny was. I told him that he was sick. The boss got angry.

I explained about what had happened and how Johnny was hurt (probably a most typical human emotion especially after a difficult and extremely stressful time)… I also told him about how Johnny’s other boss had said something about going out to have a drink and talking about work but not following through and how that reeks of insincerity (I mentioned about incompetent management – that includes, but is not limited too – keeping up on business trends. It especially has to do with caring for your workers. That is basic business management 101).

The boss said that he didn’t know about either events. He didn’t know about the baby.

I asked him why his staff knew about it, but he didn’t? Both Johnny and he work in the same place five days a week and Johnny has announced it publicly dozens of time at the office yet the boss didn’t know? Hmmm? Is this the same boss that didn’t know about a critical business trend that was announced publicly 4 years ago? Am I seeing a trend here?

I suppose that this boss not knowing these things points to one of two things, or both:

Either he is incompetent (I believe this) or his own staff don’t respect him enough to pass along the information (I believe this too!). One or the other or both. If you have another possibility, please send it along in the comment section.

I asked this guy if he was the boss. He confirmed. I told him that as boss it was his business to know what was going on with his people. I told him it was his business to motivate people and get them to do their best. Wishing a guy congrats on a new baby costs nothing but a moment in time and it is important to make people feel respected. Johnny didn’t get that.

The boss protested, “But my job is to make money!”

I asked him how much money he can make if the employees are not happy.

Like I said, some people can’t even use their heads enough for basic common courtesies and niceties to others… How can they possibly run well a company? Not knowing that one of your main employees’ wife just had a baby when they had been talking about it at work for two months and then not saying congratulations to that employee is, what? You tell me: is this good management or incompetence? Please decide.

This is, actually, not about being nice to people per se. It is about management and being smart enough to treat people right so that one can make more money. Sun Tsu wrote about it in The Art of War. Another book I highly recommend for Johnny’s bosses… Of whom, I’m sure do not read books.

I now expect some anonymous to write to me and tell me I am incompetent. Like I said, maybe so… But I’m not THAT incompetent.

I ask my dear friends like Jeff Bernier, Managing Director of Delta Airlines Asia or Tim Williams founder of Value Commerce or Roger Marshall Executive Director of Odgers Berndstein to write to me and tell me if you think I’m wrong or right? Everyone else’s opinion is welcomed too.

You’ve got to wonder how people, who are so clueless to even their own industry, get into management positions.

Bored

But, come to think of it, actually, you and I don’t have to wonder; someone wondered about it long ago and wrote a book on it in the 1970s. It was all explained in the seminal book, The Peter Principle. That book explained the phenomenon of how, in a hierarchy, everyone rises to their top level of incompetence. Then because they are incompetent, they remain in that position, unable to advance or, because of politics, be demoted.

Wikipedia says:

The Peter Principle is a belief that, in an organization where promotion is based on achievement, success, and merit, that organization’s members will eventually be promoted beyond their level of ability. The principle is commonly phrased, “Employees tend to rise to their level of incompetence.” In more formal parlance, the effect could be stated as: employees tend to be given more authority until they cannot continue to work competently.

Yep. That’s it.

Regular readers of this blog will know that I have railed on incompetent management at broadcasting stations for years. Just to prove that even a broken clock is right twice a day, two and one half years ago I wrote (on July 24, 2010) in One More Phase in the Shattering of Mainstream Media:

I rode the Tokyo subway today and saw a sign inside the car that notified the passengers that as of July 24, 2011, terrestrial television stations will no longer broadcast analogue signals in Japan and will finally make the switch to digital.

I predict that *****FM will either be bankrupt or sold to a new owner by 2014 and TV Tokyo will be in the same situation: insolvent or absorbed by another company by 2016.

I picked the first one correctly (polite applause here). The FM station was sold to another company in the summer of 2012. My prediction came true two years ahead of schedule.

I’ve got three more years left on my TV Tokyo prediction and I’m feeling very good about that. Especially since TV Tokyo is unable to payback a $5 billion dollar loan from Mizuho bank they made in Feb. of 2010 and keeps rolling that loan over every year… I wonder how long the rollover will be allowed by Mizuho bank especially since the new Japanese government has publicly stated a policy of 2% inflation which will lead to much higher interest rates.

(TV Tokyo share price was around ¥4,400 at that time. Today, TV Tokyo Holdings shares run at ¥946.)

I haven’t been writing about these stations recently, but last night I had a meeting with management at a broadcasting station that just made my head spin. The boss of the station said to me in an incredulous manner,

“Mike! We have to do something to get people back to listening to the radio… Did you know that Toyota stopped putting radios in cars? Did you know that??”

What planet has this guy been living on? Doesn’t he read at all? Duh!

It was in 2009 that Toyota had publicly announced that they were phasing out analogue radio in the automobiles within three years and that they would no longer be standard equipment in 2012. Taking that obvious clue, I even blogged three years ago that the future of radio lay in the hands of, not the stations, but Toyota. How could a station manager, almost four years later, just be finding this out?

Please refer to: One More Phase in the Shattering of Mainstream Media

The future of FM radio doesn’t lay in what they broadcast or how they up the ante of quality of content (but, of course, it will always be a competition between stations for dwindling audience and sponsorship dollars)…

After July 2011, on your dashboard, you will have a digital GPS, Internet, digital TV and digital radio. Want to do Social Media, YouTube, Twitter, U-Stream, blog? Got you covered. Need to Google or Yahoo search? Sure. When you need traffic conditions, just a click on your GPS will give you up to the minute details on traffic and road conditions. All the TV channels? No problem. Throw on top of that 6 digital radio channels and, of course, a CD player and probably an iPod connection, and you have the next generation of car entertainment system.

Now where does that leave radio in the equation? Especially when you consider the fact that radio, unlike TV and the Internet, cannot give data on exactly how many users it has and cannot give ratings…

Why does it matter that radio cannot give ratings? Well, because any advertising campaign expenditures from sponsors must be justified at accounting at the sponsor company. How can one justify a radio campaign in Japan when clients cannot be told how many people listen and who is listening? They can, though, get data on viewers for TV and Internet and numbers for print media.

That upper management at a station can be dead serious and tell me in an incredulous tone, in January 2013, that they just found out that the world’s largest car maker stopped making radios for their cars shows just how completely out of touch with reality and what’s going on with people’s lives they are.

Gee, far be it from me to tell people what to do, but I think it is the duty of management to keep apace with the market and conditions. Anything less is gross negligence.

You be the judge! Do you think people like that, who are so unaware of the market – and even their own business merits and demerits – who seem to not read business publications on market trends – can run a successful business?

Of course, if the guilty parties read this, they will probably be angry at me…

I don’t know why. I am doing them a favor….

But, of course, when the king doesn’t like the message, he will not consider where he went wrong, he will just kill the messenger boy…

What was I saying about the Peter Principle?