After starting a war that has become a plague, which will likely last decades, and leaving the economy in shambles, I never thought I would feel complimentary toward President George W. Bush. But watch this CNN interview with Jeb Bush and see if you agree.

In the interview with Jeb Bush, he says 5 or 6 times that “we need a strategy to deal with Islamic terrorism.”

When asked what the strategy should be, he lists a bunch of tactics including enforce a no-fly zone, give aid to the Assad opposition, etc. He never suggests a strategy.

The interviewer eventually shows a speech by former Governor George W. Bush in which he says, “The face of terrorism is not the true face of Islam. That’s not what Islam is all about. Islam is peace. These terrorists don’t represent peace. They represent evil and war.”

Therein lies a strategy. If you can position terrorists as not being Islam and acknowledge Islam as one of the world’s great religions, you can (1) put terrorists on the defensive in their cultural and social campaign; (2) rally the Islam world in showing support for their religion; (3) stand more chance of gaining support from Islamic political and religious leaders that we all need to fight against terrorism.

President Bush’s problem was that he chose the wrong tactics to pursue the strategy and that brought disastrous consequences. You can’t say you’re one thing and then, go out and act like another.  When he got his MBA, he must have passed the strategy course and flunked the one on implementation.

The next question to Governor Jeb Bush after showing his brother’s statements was “Is Islam peace, Governor?”

To which he responds, “You know what? I know what Islamic terrorism is and that’s what we are fighting in ISIS, Al Qaeda and all the other groups and that’s what our focus should be on.”

In this response, he first equates Islam with terrorism, which, if a strategy, is self-defeating as there are 1.5 billion Muslims in the world. That’s almost one-quarter of the world’s population. If you’re going to go out of your way to offend a religion, pick the Wiccans. I don’t know what they believe but they’re only 134,000 of them. (That’s up from 8,000 in 1990 so maybe we should be looking into their affairs.)

I think the lesson here is that if you’re going to run for President, don’t assume everyone you’re talking to is an idiot. Some of us understand that tactics without strategy is like running in circles. You might make a lot of noise, but you’ll never reach your objective.

Tags: Al Qaeda, Assumptions, CNN, George W. Bush, ISIS, Islam, Jeb Bush, Leadership, MBA, Media, Muslims, no-fly zone, Outcomes, Politicians, Republicans, Situation Analysis, Strategy, Tactics, Terrorism, Winning

There’s a great article today by Gail Collins in the NY Times (My State’s Prettier Than Yours) in which she tries to understand the promotional slogans of our 50 states.  Give up Gail.  It’s incomprehensible.  State and country slogans have always been a pet peeve of mine because they usually don’t relate to anything distinct or different about the state.  Collins gives plenty of examples.  They’re usually a result of the excesses of bad advertising agencies or over zealous economic development and tourism teams.

There’s a list of state slogans at Wikipedia (List of U.S. state slogans) and 105 country tourism slogans at a blog called Tourist vs. Traveller (105 tourism slogans from around the world) along with a nice little video to show them all with their logos (which a lot of tourism development folks think is a brand, but that’s another topic entirely).  Collins covers the states pretty well so I’ll focus on some of my favorite country slogans.

Did you know Albania is “A new Mediterranean love”?  And all this time, I thought it was a mysterious country that supplies pizza parlor chefs to New York restaurants.  Austria is “Arrive and revive”.  I’m sorry. I don’t know what that means, particularly since I’ll have jet lag for a day or two once I arrive.  Here’s one I like:  Belarus is “Hospitality beyond borders.”  Does that mean I have to leave the country for hospitality?  One of my favorites is Romania because I’ve been there twice:  “Explore the Carpathian garden.”  Now, I never saw the Carpathians on either of my trips (hint:  it’s a mountain range), but I suspect that slogan will mean a lot to the winner of any national geography bee.

You have to read the list yourself.  It’s full of surprises.  (Actually, I think that’s Connecticut’s slogan.)  You can travel from Pure Russia to 100% Pure New Zealand in a few lines.  (Maybe Russia only got to 90% so they didn’t want to tell us how pure they are.)  “Bolivia awaits you”, which is nice to know since I probably won’t make it there for a few years.  The “Dominican Republic has it all” so don’t confuse that with “Honduras, todo esta aqui.”  They have it all too but only in Spanish.  I also like “Paraguay, You have to feel it!”.  I’ve been there too and I suppose they’re talking about their vicious mosquitoes.

Τhe amazing thing about all of these slogans for states and countries (cities have them too; don’t get me started) is that they say absolutely nothing about the country, its culture and what makes it distinct and different.  Years ago, states had mottos or nicknames that said something about them and often appeared on auto license plates.  Alabama was “The Cotton State”, Florida was “The Everglade State”; Georgia – “The Peach State”; Hawaii – “The Aloha State”; Michigan – “Winter Water Wonderland” and so on.  Washington D.C. was “Nation’s Capital”, which tells me a lot and that no other state can say.  Now, it’s become “The American Experience”, which is ironic since it’s never been a place that Sarah Palin went looking for her “real Americans”.  As a child, I always loved the slogans on license plates and could recite a lot of them.  They told me something different about each state and I wanted to visit them all.  Now they all blend into a meaningless hodgepodge that I bet nobody but each state’s tourism employees can recite.  It’s bad for the state or country, self-aggrandizing and simply poor communication.

I used to live in Maine and often drive there for long weekends.  We have a house there and a car with Maine plates that says “Vacationland”.  I like that, although I also like that it’s been called “The Pine Tree State.”  Sure, there are pine trees in other states but drive into Maine and you’ll think there must be more of them there than anyplace else and it does give you a picture.  For many years, they had a slogan on a sign when you enter the state, “The way life should be.”  Yes, it’s another one of those silly slogans but I have to admit that as someone who lived there for 25 years, seeing that sign always made me feel like I was home.  It meant a way of life to me and I hoped for others visiting for the first time.

A few years ago, they added another sign about a 100 feet further down the road that read, “Worth a visit, worth a lifetime”, which signaled to me that they hired a new ad agency that wanted to establish its own brand of creativity.  Then, a year or so ago, they plastered “Open for business” underneath “The way life should be.”  I suppose it’s nice that the state is trying but did anyone check to see that Forbes put Maine last in its best for business rankings?

At its core, this is all about determining what a state or country’s marketing strategy is because slogans, if they have any purpose at all, should tell us why that place is worth our patronage for business, tourism or simply, aspirations. Anyone who pays attention to strategy knows that it must tell us why the product is both distinct and different from any other, and if that strategy is not true to what’s being delivered, it is totally meaningless.  Slogans, however, have become a tactic conjured up by advertising or public relations agencies without a thought to strategy and that’s why they are incomprehensible and instantly forgettable.

Tags: 50 States, Advertising, Alabama, Albania, Austria, Belarus, Bolivia, Carpathians, Communication, Connecticut, Corporate Myopia, Creativity, Dominican Republic, Economic Development, Florida, Gail Collins, Governments, Hawaii, lidija, lidijastag, Maine, Marketing, Michigan, New York, New York Times, New Zealand, Paraguay, Positioning, Romania, Russia, Sarah Palin, Slogans, Strategy, Tourism Promotion, Washington D.C.

Everybody knows Christmas can be a challenging time.  Gifts, parties, family, travel, decorations, cards all can present vexing problems to solve every year.  For me, an appropriate card is probably the toughest thing I face.  Every year, my friend George and I develop a cartoon to use as our card and it’s not easy.

You see on the side, we’re cartoonists or I should say a cartoon team.  George draws and I write except when he draws and write or I change his drawings with photoshop and write or he draws and his wife writes or my wife and kids make suggestions.  But however it’s done, we come up with a collaborative effort every year that goes on our website GigundoIndustries.com

No doubt you’ve heard of Gigundo Industries, the largest, non-existent, virtual company in the world.  If not, you better visit the website as soon as possible for there are hundreds of cartoons there for you to peruse and even buy.

In a way, creating cartoons is similar to writing strategy.  You take a complex set of facts and distill them down into something simple that cuts through the clutter.  Only with cartoons, you place that simple statement in an unusual setting such as a psychiatrist’s office, caveman times, a prison, the North Pole or Santa’s workshop.

There was so much news this year that was fodder for our a year-end card.  Off course, most prominent and recent in our minds was the malfunctioning of healthcare.gov and that led to an idea that really didn’t require any drawing at all.

But we quickly nixed that idea because who could possibly make jokes about their government failing at something, let alone Santa?  I mean nobody wants the government to fail. Right? Yeah, right.

So then we moved on to the saga and embarrassment of Edward Snowden and the NSA snooping and came up with this:

But not exactly an uplifting story and we were looking for something more upbeat.  So we moved on to a couple of positive stories.  First, the extraordinary first-ever resignation of a Pope got us wondering if that could ever happen to Santa.

Then came the idea that the battle for gay marriage might even have reached the North Pole.  (No, this is not for you people at Fox News who think gay marriage may as well allow us to marry a goat.  Who’d marry a goat anyway?)

We just weren’t satisfied yet and then read the news that “Selfie” was the word of the year and would enter the Mirriam-Webster Dictionary.  Santa can get in on that too.

Finally, we hit upon it, an idea that would really take us into the future but have that bit of mixed message that might cause us to wonder whether things are as they should be.  2013 also became the year of the drone, for both reasons that frighten us and, thanks to Amazon.com, frighten us.  Just think if Santa employed some new technology.

That’s our holiday collection for 2013.  They’ll all go up on our site at GigundoIndustries.com soon.  Let me know which you like best.  Now, it’s back to my day job.  Everyone at Futureshift and GigundoIndustries.com wishes you the best of Christmas holidays and a great 2014.

Tags: 2014, Amazon, Assumptions, Christmas, Corporate Myopia, Creativity, Democrats, Drone, Edward Snowden, first Selfie, Fox News, futureshift, gay marriage, GigundoIndustries.com, government failure, Governments, Healthcare.gov, Media, new Pope, New Year, NSA, old Pope, Outcomes, Pope, Santa, Selfie, Situation Analysis, snooping, Strategy, The Guardian, Virtual Company

I went to a wine event today in New York for the Bordeaux wine region.  While there, I asked the representative of one of the wineries, “What’s your strategy for the U.S.?”  She responded, “Strategy?  Why do we need that?”  I gave her some reasons but the conversation didn’t go very far.

When I returned to my office, I got an email from the Pew Research Center titled “Experts rank the top 10 global trends.”  When I clicked on the link, I found a report from the World Economic Forum on the 10 most important global trends based on a poll of 1,592 leaders from academia, business, government and non-profits.  Here’s the list:

1. Rising societal tensions in the Middle East and North Africa
2. Widening income disparities
3. Persistent structural unemployment
4. Intensifying cyber threats
5. Inaction on climate change
6. Diminishing confidence in economic policies
7. A lack of values in leadership
8. The expanding middle class in Asia
9. The growing importance of megacities
10. The rapid spread of misinformation

So what do these trends have to do with something as everyday as buying a bottle of wine?  Plenty.

It’s great that a provider of any product or service believes theirs is the best but neither consumers nor b2b markets think in linear terms.  Every decision is made in relation to another.  If I’m nervous about the state of the world, that will effect how I make decisions, and what and when I buy.  If I’m an importer or distributor and concerned about unemployment and the impact of economic policies, I may want to hedge my bets with tighter inventory control.  As people focus on the macro trends that affect us all, how companies approach the environment, social responsibility and their own governance (ESG) effects our perceptions of their brands.  It goes on and on whether you’re a consumer or corporation (remember, somebody once said, “Corporations are people, my friend.”)

If you don’t have a strategy that helps you wind your way through this maze or a brand with values that reassure consumers and customers, you’re dead in the water and it won’t matter how many fancy events, e-newsletters or facebook followers you have.

Something else was interesting to me at today’s Bordeaux event.  As I went around and asked people about their wines and what makes their winery better than the rest (to which there were a lot of blank stares), nobody asked any questions about me, about my tastes, concerns, or needs.  They may as well have been Enomatic wine dispensers with an information rack underneath.  Most handed me a sheet of paper about their wines in answer to my questions anyway.

There was neither strategy present nor any attempt at customer engagement.  I imagine the woman who asked me why her company needs strategy poured a lot of wine today.  At the same time, it wouldn’t surprise me if at the end of the day, she moaned about some of the trends on the list and how they were making life more complicated.  That’s too bad.  Strategy is the direction that helps us wind our way through and around those trends and we all give our loyalty to those that help us do that.

FutureShift asks a lot of questions and listens carefully so that brands and strategy resonate with customers to increase their engagement and loyalty.  It works.

Tags: Asia, Assumptions, Bordeaux, Bordeaux wine tasting, brand loyalty, climate change, Corporate Myopia, Corporations are people, Customer engagement, Customers, cyber threats, economic policies, Enomatic, ESG, facebook, futureshift, Global Trends, income disparities, Individualists, Leadership, linear thinking, Marketing, megacities, middle class, Middle East, misinformation, Mitt Romney, my friend., North Africa, Outcomes, Positioning, relational thinking, Rising social tensions, Situation Analysis, Strategy, structural unemployment, Trade Associations, U.S. Marketplace, Values, Winning, World Economic Forum

There’s always a rush these days to get plans into action.  Action is what we value, just as we’re always looking for someone who “can hit the ground running”.  But what if they’re running in the wrong direction?  And how do you know in which direction to run?

The answer to that mistakenly comes in businesses doing what they’ve always been doing and whenever possible just running faster.  In the accelerated competitive environment of New York City, we’ve become accustomed to stores, restaurants, professional services and even hospitals suddenly disappearing.  These businesses failed even though they worked harder and ran faster than anyone around them.  Why did they fail?

Most likely, they never asked their customers whether the direction they were going, the products and services they were offering or the benefits they perceived internally met customer needs.  It’s the rare manager or entrepreneur who can intuit what the market is looking for.  Otherwise, there would be a lot more people like Steve Jobs around.  Businesses have to get feedback from their customers and understand how to match their offerings with what customers are seeking.

Not surprisingly, customers often see product plusses and minuses in completely different terms than the companies selling them.  The best advertising campaign in the world won’t convince customers that they should be seeking something different.  We’re just not in that linear world of the 1950s and 60s when we could be told what detergents make our clothing cleaner and then march in lockstep to the store to buy them.

Of course, businesses don’t always listen to their customers because internal beliefs are so strong as to refuse to change their strategy to meet customer needs.  Here are three examples to consider:

1. Several years ago, we were asked by the Chilean Pisco industry to provide a strategy that would open up the U.S. market for them.  If you don’t know Pisco, it’s an eau de vie, somewhat like a refined grappa, that’s made in Chile and Peru.  Our research found that bartenders believed it made most vodka-based cocktails more interesting and one of our key strategic recommendations (futureshiftpisco.com) was to unleash the creativity of bartenders with a series of tactical programs that would challenge them to develop great Pisco-based cocktails that their customers would love. But Chile is a country where perfection in planning is highly valued and established.  That works when building bridges, tunnels and skyscrapers, of which you’ll see many in Santiago these days but not when variable decisions are involved as with bartenders and their customers.  The Chilean Pisco industry decided to design several “perfect cocktails” that they could then promote in the U.S.  The result?  Peruvian producers who gained a better understanding of the U.S. bartender now dominate the market.  There’s still time for Chile to adapt as Pisco still is not well known in the U.S.   They simply have to acknowledge that their customers have more power than they do.  Easy, right? 
2. While we’re on Chile, let’s move to technology.  This time the Chilean technology industry told us they wanted to sell their growing tech industry to U.S. companies.  Chile had already achieved tremendous success in establishing itself as a successful place to locate an offshore tech center.  Now, they wanted to have a presence inside the U.S. to provide SaaS and enterprise integration products. Again, we spoke to prospective customers for these talented Chilean companies and were told that if they could establish partnerships with Chilean companies in Latin America, a piece of their U.S. business would likely follow.  (FutureshiftChileIT.com)In other words, help us in your territory and then we’ll reward you in ours.  U.S. companies wanted to understand the Chilean miracle and how it had become an export powerhouse. But just as with Pisco, the forces that worked internally in Chile were too strong to persuade them to adopt a market-oriented strategy in the U.S.  Six Chilean IT companies came to the U.S. trying to sell their services based on low prices.  But why go to a company thousands of miles just for low prices when that can be found down the road?  Today, there is only a small amount of programming work going to Chilean companies, as talented as they are. 
3. Most recently, we conducted a research and strategy project for the Maine lobster industry.  Following 200+ interviews, there were a number of findings in that report that showed how Maine lobster possesses attributes to restaurant and hotel chefs that were not being considered within the industry.  There is ample opportunity for the Maine industry to differentiate its brand from all competitors.  However, lobstering is a traditional industry and change does not come easily.  Like the two Chilean examples, internal beliefs in Maine are strong.  Most lobstermen are focused on their first transaction with a dealer when they bring their catch to the dock.  The needs of restaurant and hotel chefs can be perceived as a distant concept and there is little patience for the time it takes to raise the foodservice market’s demand.  The local dealer and summer tourist who loves to sit at the water’s edge, even though they both pay rock bottom price, is more concrete.  It’s been that way for more than a hundred years so change, despite market feedback, isn’t easy.  There’s cause to remain optimistic but it remains to be seen whether Maine’s lobster industry adapts.

In each of the above cases, the right strategy began with listening to customers.  That helped set a direction for the industry to go.  But at that point, industry members often put up obstacles to change.  After all, it’s far more difficult to do something new than the things you’ve been doing for dozens of years, even though they may not be working.

FutureShift develops brands and rebranding programs by understanding how customer decisions can increase engagement and loyalty.

Tags: Action, Advertising, bartenders, Change, chefs, Chile, cocktails, Corporate Myopia, Creativity, Customers, Direction, futureshift, Information Technology, IT, Latin America, Leadership, lobstermen, Maine, Maine Lobster, Marketing, Mistakes, New York, Outcomes, Peru, Pisco, Positioning, SaaS, Situation Analysis, Steve Jobs, Strategy, Tactics, technology, Trade Associations, U.S. Marketplace, Winning

Business managers and their consultants often talk about strategy, yet they frequently misunderstand what strategy is, why it’s important, and how objectives, strategy, tactics and goals are related. The confusion seems to exist because our business culture values action.  “I’m looking for someone who hits the ground running,” is a common refrain from CEOs who believe action is what creates results.  But the real question is “what direction are they running?”  Action without direction is meaningless or even harmful to the potential success of a business.

It’s simple enough to say that “objectives are measurable, strategy is direction, and tactics are actions.”  Yet, the question still asked is: “How many strategies should we have?”  Of course, if strategy is direction, how many directions can you go at the same time?  No wonder we’ve become accustomed to business plans underperforming. Marketing departments and their agencies often don’t know what direction they’re going or they create separate strategies for each tactical execution. Consequently, tactical programs may have no clear direction or consistent messaging and the result is that they get lost in the competitive clutter.

Building a business is like crossing the ocean

A clear example of an objective, strategic options, and tactics may help clarify the confusion. Suppose, for example, we decide to sail a boat across the Atlantic Ocean. This isn’t something most of us will ever do but objectives, strategy, tactics, and goals as well as research, even management teams, become crystal clear when setting out to cross the ocean and they’re no different than they are in business.

For fantasy purposes, we can become part of the idle rich and plan to sail our boat from the Chesapeake Bay area to the mouth of the Mediterranean in late June.  Why not?  The Mediterranean is a nice place to spend the summer.  Since we’re in a hurry to get there in time for party season, we’ll set an objective of reaching the Mediterranean in 20 days.  So now, we’ve set an objective and it’s measurable.  We can break it down further to measure our progress along the way.  It’s about 3,800 miles in a straight line across, which means we’ll have to average about 190 miles every 24 hours.  That will require an average speed of 7 nautical knots per hour (a little more than 8 miles per hour).  That may sound slow but we’re dependent on the vagaries of the wind and weather conditions as we sail across.  More importantly, we now have a set of metrics by which we can measure our progress, a key component of objectives.

To take our fantasy voyage further, we’ll need a boat and considering our objective, we might want one that’s about 60 feet long, something like the one in the photo.  This boat is called a Swan 60 and is made by Nautor in Finland.  Nautor makes safe, fast and beautiful boats and we’ll pay a pretty penny for the privilege of owning one.  Fully equipped, we’re looking at around $3.5 million but hey, it’s only money!  The good news is that the Swan 60 has what’s called a hull speed of about 10 knots (approx. 11.5 mph).  Without going into a technical definition, hull speed is the approximate maximum speed a boat can go.  The exception to hull speed is when a boat surfs in high winds on top of the waves.  If we can get our Swan 60 surfing, we can probably sail at speeds well over 15 knots.  So averaging 7 knots across a 3,800 mile span of ocean does not seem out of the question.

Now we have our boat and you can think of it the same way as we might a business.  It has an owner (a wealthy one) who may or may not be “skipper” (no jokes please) or managing director.  We’ll need a navigator, who can be compared to a combination of a Chief Technical Officer and Chief Strategy Officer, and a Tactician, our Chief Operating Officer to keep us going at maximum speed.  Then we’ll need some specialists, people who excel in working in different areas of the boat and handling a 60-foot yacht’s large sails.  Also, we’ll need an experienced sailboat cook who knows how to keep a crew happy while being tossed around in large waves.  We’ll want experience all around as ocean sailing is not for novices.  In all, our team may total 14 people.  Our boat only sleeps seven but we’re sailing non-stop 24/7 so we’ll need enough people to manage the boat while others sleep.

Selecting a strategy

You can see by now that we’re building a small company that has an ambitious objective.  Now, it’s time to select a strategy, a direction we’ll take to reach the Mediterranean on time.  We have some difficult choices to make.  It’s time to do some research.

We’ll study historical weather patterns, learn the prevailing winds, ocean currents, note the islands or hazards we might see along the way and course taken by other boats making the same crossing.  We learn that there are three optional courses across, each with its strengths and weaknesses.  We can devise a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each of them.  The map below shows our choices.

• Course 1:  High-risk; High-reward

This is a strategy that has some clear risks but also enticing opportunities.  It takes us northeast along the U.S. and Canadian coastlines.  As the prevailing summer winds are out of the southwest, we’ll be sailing downwind, which should give us more speed.  We’ll also be assisted by the Gulfstream currents, which run along a path from the Bahamas northeast into the Atlantic at an average rate of 3 knots.  Then, if weather patterns hold, we should have good winds reaching down the European coast to get to our destination.  The risk is that we’ve added about 1,000 miles to our course, which means we need to average 9 knots, which is pretty aggressive.  Another risk, more precisely, a threat, is the possibility of sailing among drifting icebergs, once we’re off the Labrador coast.  Our research has told us that iceberg fields breaking off from the Greenland glaciers are common during the summer months.  That’s not a problem for us during good weather but it’s difficult to see an iceberg at night (memories of the Titanic).  So in the end, we have a potentially fast crossing to meet or exceed our objective but with some significant risks.

• Course 2:  Shortest Distance

This is a strategy that takes the shortest possible course using the curvature of the earth to shorten our path. It still has the potential risk of icebergs but it is more manageable if this becomes a problem.  We’ll gain less of a push from the Gulfstream and may find ourselves stuck with low or no wind for days in a mid-Atlantic high-pressure system, but it seems to strike a middle ground that still makes our objective within reach.

• Course 3:  Nice & Easy

This strategy is the most conservative.  It enables us to stop along the way in both Bermuda and the Azores, enabling us to replenish our supplies 700 miles east of the U.S. and about 1,000 miles west of the Mediterranean, with a gap of about 2,000 miles in between.  This course reduces the risk of being exposed to extreme weather along the way and allows us to spend a night or two in safe harbors along the way.  The risk is that high-pressure centers regularly sit in the middle of the ocean in late June and we could have to drift windless or move at low speeds for days.  This may make it difficult to reach our objective on time.  (BTW, this course appears shorter when viewed as flat surface but is longer when going around the diameter of a sphere.)

Our three strategies are not too different from what we may see in business, one that is high-risk, high-reward, one that is safe but potentially slow and one that is a middle ground or compromise between the two.  Which should we choose and what happens if we recognize that we’ve made a mistake?

Suppose we’re aggressive and have tremendous confidence in our abilities to manage the boat and navigate the seas. Past success might even blind us to some of our weaknesses.  When hubris takes over decision-making can be reckless (memories again of the Titanic…or hundreds of failed businesses).  Let’s assume we select the high-risk course that takes us far north but in doing so, we either find the hazards of icebergs to be too many, the seas to be too rough or even the winds to be less than we anticipated.  As a result, we decide to change strategies and move mid-course to another direction.  One look at the “course change” on the map shows the cost of making this correction, which is likely to make our objective much more difficult to reach.  The lesson, of course, is that selecting the wrong strategy and making a change has costs, which can be significant.

Tactics and goals

What about tactics and goals?  How do they factor in and how should we think of them.  During any period of time, we’re going to take specific actions to increase the speed of our boat.  We might put up different sails, larger or smaller, to better take advantage of changing winds. Or, we might want to be on a slightly more advantageous course to gain speed.  These are tactics but are not strategy, as they don’t alter our overall direction in reaching our objective.

Imagine a boat (or a business or someone who hits the ground running) that is all tactics but has no strategy.  It would always take every possible action to increase its speed regardless of the direction it is heading.  It might even go in circles and get nowhere very fast.  Tactics will not reach a productive objective without strategy to provide guidance.

Finally, where do goals fit in?  Goals are long-term milestones that you want to achieve.  (e.g. “I want to be a better sailor/manager/person.”).  Objectives are fixed and have specific requirements, which can be measured.  Objectives have structure; goals do not.  Goals can never be accomplished without objectives but objectives without goals won’t create the long-term change you desire.

Hopefully, that clarifies things.  Following college, I crewed on a large sailboat crossing the Atlantic.  Our owner chose “Course 3: Nice & Easy” and we paid a price for it.  It was slow, slow, slow – 27 days across.  But one of my strongest memories of that trip was listening to our marine radio and hearing reports of sailboats dodging icebergs in high winds only a thousand miles to our north.  It was an example of how the wrong strategy can have its costs, either going too slow or too fast, but it cemented the concepts in my mind forever.

At FutureShift, we provide research-based strategic services, but are often asked to run workshops that help clarify the confusion around objectives, strategy, tactics and goals.

Tags: Agencies, CEO, Change, Choosing the best strategy, Goals, High-reward, High-risk, Hubris, Leadership, Marketing, Metrics, Mistakes, Nautor, Objectives, Outcomes, Research, Situation Analysis, Strategy, Swan 60, SWOT, Tactics, Winning

FutureShift is a data-driven strategic and brand planning company, which uses its proprietary software to develop databases and customer feedback that enables direct communication to any user defined segment.  

If you’re like most people in business today, you’re probably talking about “Big Data” and what it can do for you.  One can hardly scan the business section of any newspaper or magazine without reading about it.

On April 15^th NY Times, columnist David Brooks wrote an excellent article about the limits of Big Data.  It’s titled, “What You’ll Do Next”. It was of interest to me because we offer large-scale, qualitative customer intelligence to our clients with the ability to instantaneously email people who share a distinct set of differences.

Let me explain because it’s really quite simple.

The purpose of research or recording data (quantitative or qualitative) is not to tell you what people have in common but what drives them apart.  If in your marketing, you find the common denominator between all your customers and then deliver them a message that addresses that commonality, you’re actually speaking to no one.  You haven’t addressed any particular interest that anybody has that might indicate that you understand their specific needs.

This is why we use (or build) your database to tell you how your customers are different from each other and how they want that difference to be addressed.  As Brooks points out, “People are discontinuous…the passing of time can produce gigantic and unpredictable changes in taste and behavior, changes that are poorly anticipated by looking at patterns of data on what just happened.” Nothing could be truer in marketing today.

One of the problems with Big Data is that it is essentially a rear-view mirror. It looks for past patterns of preferences based on purchases or contacts and assumes their patterns will tell you how they will act in the future.  Brooks quotes the Viktor Mayer-Schönberger and Kenneth Cukier book, “Big Data,” noting “this movement asks us to move from causation to correlation.” But he writes, “Correlations are actually not all that clear.  A zillion things can correlate with each other depending on how you structure the data and what you compare.”

We’ve all probably experienced this when buying products ranging from books to vacuum cleaners from Amazon.  You’ve surely seen, their notations that people who bought these books, also bought these.  What they’re doing is simply taking your history of book buying, comparing it to others with similar lists and laying what those people bought next onto your page.  In other words, past history from people like you equals future purchase probability and with enough purchase data, there may be some accuracy in that prediction.  However, Amazon can’t know that last week I had no interest in buying books about terrorism and this week, sadly due to the events in Boston, I do.  Until I make my purchase, but then all kinds of things can intercede with my buying decision.  There are just too many potential disruptions to patterns of purchases to be good predictor of future behavior.

We’ve created a forward-looking mirror called DirectLink™ We ask your customers “what if” and “why” questions.  We capture their words and then quantify their ideas, perceptions and motivations.  Then, we give you the ability to instantly segment them and download the email addresses of any segment you select.

With DirectLink™, you can immediately see what differentiates your customers, the words they use to describe their differences and their emails so you can you respond specifically to their unmet needs.  Most purchases are motivated by either frustrations or the need to fulfill unmet needs.  Big Data doesn’t engage customers to determine their frustrations or needs.  DirectLink™ does. In doing so, you are directly engaging your customers to increase loyalty and ultimately, sales.

Learn how Futureshift would approach your marketing challenge or arrange for an online demo of DirectLink™  by calling 212-444-7192/7193 or email strategy@futureshiftnow.com

Tags: Amazon, Big Data, Change, Communities, Customer Intelligence, Database, David Brooks, DirectLink™, Governments, Kenneth Cukier, Marketing, Outcomes, Predictive Analytics, Strategy, Viktor Mayer-Schönberger

No, Michael Porter is not dead.  Only the consulting firm that he co-founded in 1983 is gone.  Today, the global accounting giant, Deloitte, announced that it had completed its acquisition of Monitor, which had filed for bankruptcy this past November.  As reported in The Economist last November 14th, the once proud firm, “was able to compete with the likes of much bigger McKinsey, the Boston Consulting Group and Bain.”

No mention was made in the announcement of what role Porter might play in the newly formed division of Deloitte but he remains a highly regarded professor at the Harvard Business School.

Businesses come and go all the time and acquisitions are a daily occurrence.  What is of note here is that Monitor was founded by a man acclaimed as one of the great business strategists of the past century, and more importantly by his principles, best known as “Porter’s Five Forces”.  Under the guidance of the Five Forces framework and Porter’s fame, Monitor’s legions of consultants found millions of dollars of billable work among foreign governments, multi-national corporations and commodity boards.  That work began to dwindle in 2008 when Monitor had to seek a series of loans from its partners and venture capital firms in order to stay afloat.

In the November issue of Forbes, contributor and business author, Steve Denning, uses his rapier-like writing skills to tear apart both Monitor and the philosophical approach behind it.  In other words, he does some dancing on Porter’s grave.  While the article is now two months old, it makes for compelling reading if you were a believer or doubter of Porter’s framework.  Put me in the latter camp.

I first read Porter’s seminal article in the Harvard Business Review, “How Competitive Forces Shape Strategy” in 1979. I was one year out of business school and a loan officer in a commercial bank.  My mantra was a phrase coined by another business guru, Peter Drucker, and known as “Managing by walking around.”  The idea is that by engaging with people both inside and outside an organization, managers can best understand how their companies, products and management styles are perceived, how they perform and what to do about them.  That’s a simple concept that one could explain in an elevator between the first and second floors.

It served me well then and has since as I’ve made the practice of engaging with both internal and external audiences to find the intersection between internal capabilities and external needs as the place to find the sweet spot for successful strategy.

Porter’s Five Forces, on the other hand, require a much longer elevator ride. The idea is that by managing a framework of five market forces, a company or industry could find sustainable competitive advantage.  “The state of competition in an industry depends on five basic forces…The collective strength of these forces determines the ultimate profit potential of an industry.”

I can’t say I fully understood it in 1979 and I can pretty much say the same today.  I looked at the model then as I do now and ask, “Why is the competition at the center?  Why not the customer?” Drucker taught that the only valid purpose of a business is to create a customer.  Yet, here was Porter, saying that it’s all about dominating the competition.

I had a memorable meeting at Monitor’s Cambridge headquarters in the early nineties.  At the time, I was doing some consulting for the government of Chile on export promotion, inbound investment and tourism development.  Monitor had built up a practice in consulting in these areas and proposed a partnership.  I felt this might add some prestige to the project.  At our meeting, one of their senior consultants explained how they would apply the discipline of the Five Forces to the project.  He drew lots of squares and circles on the board labeling them various types of competitive clusters and argued that it was winning against competing countries, not customer perceptions that would win the day for Chile.

I left there confused and unconvinced that the focus should be on “competitive clusters” rather than matching what Chile offered with customer needs.  If you spend your time focusing on rivalries, you’re losing time creating more innovation to meet growing market demands and before you know it, your competition will be your problem.  As the famous baseball pitcher, Satchel Paige, said,  “Don’t look back.  Something might be gaining on you.”

As Steve Denning notes about Monitor, “Its consultants were not people with deep experience in understanding what customers might want or what is involved in actually making things or delivering services in particular industries or how to innovate and create new value.”

Today, factors such as globalization, the Internet, and the growth of social media have heightened the importance of building strategy around customers.  Now that the world is flat, customers decide who wins in every industry and political arena.  As Denning ends his article, “Monitor was crushed by the single dominant force in today’s marketplace:  the customer.”

It’s hard to argue against the man who is one of the most cited scholars in economics and business and whose ideas are widely used by business and government leaders around the world.  But we are in a different time where the key is satisfying customer needs for innovation, whether they be in features, quality, service, or value.  Companies like Apple, Amazon, Fresh Direct, and Kayak are just a few of the examples of how our flattened world has given power to customers.

Our consulting approach is to put customers at the center and to understand their frustrations.  After all, a frustration is simply an unmet need.  Find the innovation to serve that need, erase the frustration and you’ll find a successful business — that’s a short speech in any elevator.

Tags: Amazon, Apple, Assumptions, Change, Chile, competitive clusters, Corporate Myopia, Customers, Deloitte, elevator speech, Five Forces, Forbes, Fresh Direct, futureshift, Governments, Harvard Business School, Kayak, Managing by walking around, Michael Porter, Monitor, Monitor Group, Outcomes, Peter Drucker, Porter's Five Forces, Positioning, Satchel Paige, Situation Analysis, Steve Denning, Strategy, Trade Associations, U.S. Marketplace, Winning

As many of my friends and associates know, I create a holiday cartoon every year with my good friend and former business partner, George Hughes.  This is the twelfth year that we’ve created a cartoon as the centerpiece of our holiday card.  George and I used to own an advertising agency together and we began to create cartoons there as one of the agency’s creative teams.  Now, as owner of my strategy consultancy, Futureshift, and George, who has gone onto wherever old artists go, continue to take on this annual project.

George illustrates and I write, although our best work has always come from equal collaborations.  When I moved to New York in 2000, through a series of coincidences, the famous cartoonist, Jules Feiffer, saw a few of our cartoons, liked them and sent me to The New Yorker to meet with their cartoon editor, Bob Mankoff.  When I called Mankoff, I used Feiffer’s name, which I’m sure is the only reason he took my call.  He told me to come in the following Tuesday and bring a lot of work.

I showed up at the appointed time with around a hundred cartoons.  Mankoff went through about 30 of them, never cracked a smile, told me most of them were terrible and before I could run to the door, said, “Show up every Tuesday with new work.”  That’s the way of the The New Yorker, I suppose.

For the next six months, I showed up every Tuesday with 7 to 10 new cartoons.  However, being a cartoonist wasn’t my day job nor was it George’s.  Mankoff always would tell me how we weren’t funny or our jokes didn’t work and then he’d hold onto a couple to take into their final grouping of 50 to choose from for that week’s issue.  Our problem, he lectured me one week, is that we were a team and he didn’t like the idea of teams.  After a few months, he began to support our work more but eventually, we ran out of steam in the face of having other priorities.  Maybe he was right about teams.

We didn’t view it as failure but as a call to take a different, more relaxed approach to cartooning and so we formed Gigundo Industries, the world’s largest, non-existent, virtual company, which is a subsidiary of an even larger, non-existent, virtual company called Enormco.  You can visit the websites for either company at gigundoindustries.com or enormco.com and there you’ll find dozens of cartoons to look at and even buy for your presentations, brochures, etc.  (A little crass commercialism doesn’t hurt now and then.)

The process of coming up with a good cartoon is not all that different from developing a marketing strategy.  Strategy formation requires taking a complex set of both internal and external inputs and distilling them down to a single direction that fulfills unmet needs.  Cartooning does the same but it ends with turning the situation upside down or placing it in a prison, doctor’s office, caveman times or some other real or unreal situation we can all envision.

Today, George and I come up with fewer cartoons but we always work on one for the holidays.  Typically, we talk about the year’s news and try to work up ideas based on what people have been talking about that is still current or top-of-mind.  Some years have been a lot tougher than others.  I think the most difficult year for us was 2001 following 9/11.  It was impossible to come up with an idea that would be funny or ironic.  I don’t recall now what triggered the idea of the cartoon below that was the result, but it seemed right for the times.  There was no caption.  There was nothing that needed to be said.

2002 was an extraordinarily tense year and you’ll recall the heightened security everywhere in New York and in other major cities around the world.  But at the same time, we began to laugh again and take ourselves a little less seriously.  That was the year we sent this cartoon out:

By 2004, the country was beginning to relax a bit more but still always conscious of our enemies around the world.  Santa, too, we thought, would have similar concerns and we came up with this.

By 2009, we felt we could move on to other topics and that was a year filled with the lunacy of the tabloids, or is that every year?  We decided that even Santa couldn’t be immune from tabloid scandal and this cartoon resulted:

We’ve moved around to a lot of different topics including the economy, labor, health and nutrition and last year, focused on the 1% who have become so wealthy during the last decade, even Santa.  All of our Christmas cartoons can be seen at the Gigundo Industries website and that brings me to 2012.

This has been a year in which we had a nasty and competitive Republican nomination race, a tough presidential campaign, the debt ceiling negotiations, President Obama’s re-election, the fiscal cliff and this past week, the horrific mass shooting in Newtown, CT of 20 young school children.  There simply is nothing but shock, dismay and sadness that can be expressed about losing these beautiful children and six of their teachers in such an awful incident.  The murders have been followed by outrage and arguing between defenders of gun rights and advocates of gun control.  While the majority of voices seem to be on the side of doing something about the seemingly endless stockade of automatic weapons in this country, we again seem so polarized in every societal issue that comes before us.  Where is there humor in that?  It’s hard to find but when you think about Santa’s world, you have to wonder how our times are affecting him.  Is his world as polarized as ours?  Of course, we’d like to think not, but then Santa has to decide whether we’ve been naughty or nice and you have to admit this has not been an easy year for him to make that decision.  That idea set our minds to wondering…and we came up with this for our 2012 holiday cartoon:

What else is there to say?  We’ll all find out on Christmas how Santa decided.  I hope that you and your families have a day filled with love, peace and joy.

Tags: 2001, 2002, 9/11, Americans, Bob Mankoff, cartoons, Christmas, Corporate Myopia, Crazy people, Creativity, Democrats, Dreams, Enormco, Events, Gigundo Industries, Holidays, Individualists, Jules Feiffer, Marketing, Mistakes, New York, Newtown, Outcomes, Politicians, President Obama, Republicans, Santa, Situation Analysis, Strategy, Tabloids, Terrorism, The New Yorker, U.S. Marketplace

In the mad dash to build Facebook and LinkedIn communities, something has been missing.  Companies have been campaigning for as many Facebook “likes” as possible but now, they’re asking, “How do we know if our message is getting through?” and “Is there any way to tell whether (1) awareness is being raised; (2) brand loyalty is increasing; and, (3) social media is having an effect on sales?”

They’re good questions to ask and now there is a way to answer them.  With a simple link on your social media page, you can gather comments and get key strategic questions answered by your social media network.  With our DirectLink™ software, you can ask them questions about their understanding of your brand, unmet needs and the information they’d really like to have from you.  They can be open-ended questions that allow people to write as much as they want and then you can apply these three new tools:

1. See what they’re writing in real time – as they write it!

Now, you can actually monitor what your community is saying about you and how they’re answering your questions.  Take a look at the example below for one of our clients that is a wine producer.  The question asked is “Please describe the qualities that you find in our wines that differentiate them from other wines at any given price level.” With one click on the button on the upper right that says “Get Verbatims”, everything written in answer to that question immediately appears.

And if you want to see all of the text responses quantified, you simply close the verbatims screen and bar charts appear showing how all of the answers have been categorized.

In other words, we’re quantifying qualitative information – conversational text – and enabling you to see the actual words behind the data.  It’s like listening in to hundreds of conversations about all the questions you want answered about your brand.

2. See the key words they use while they’re using them.

When considering the key needs among your customers to address, it helps to know their top-of-mind thoughts.  Word clouds can provide a quick look at what any customer group is saying about your brand.  With one click on the “Word Cloud” button, you’ll see your word cloud develop before your eyes.

DirectLink™ automatically throws out the meaningless words such as articles, pronouns and other common words that might improperly skew the response.  Still, there will be words you’ll see in the word cloud that get through the screening process but don’t provide insights.  DirectLink™ enables you to quickly toss out those words.  For answers to the same question as above, “Please describe the qualities that you find in our wines that differentiate them from other wines at any given price level.”, we tossed out seven additional words to get the picture above.  It’s as easy as clicking on the words you don’t want and the word cloud quickly reforms.

With this feature, you see the top-of-mind thoughts your customers have and the descriptive words they use.  Every product or service creates its own lexicon of words that both the trade and consumers use.  Now, you can see what those are and use them to talk to your customers.

3. Segment your customers instantly and respond immediately.

A common reaction to seeing what people say about you is to think “if only I could talk directly to these people about their beliefs.  Then, I could convince them.” Now, you can!

To the same question above, we wondered if the media that follows the wine and spirits industry might have different topics on their minds.  So, we quickly selected only the media respondents, clicked on the Word Cloud button and this picture appeared: 

Whereas the top-of-mind words used by the larger audience were “food, fruit, price, friendly, oak, aging”, the media has prominently added “complex” and “smooth”.  If we were to speak about these wines to a journalist then, we might stress both the complexity and smoothness of the wines as being key factors that make them so good with food.  It’s this type of parsing that can enable you to tailor your response to any particular trade or consumer group based on factors that you define.

Now, let’s go a step further because DirectLink™ makes a seamless connection between survey responses and direct marketing.

Among the DirectLink™ features on the control panel, you’ll see that there is another button on the upper right that says “Get Emails”.  Clicking this button immediately downloads an email list of only those people who responded to the question or multiple-questions you selected.  You can send them an email using the words they’ve used in response to your question that is specific to their ideas, perceptions and beliefs.

Who can use these 3 features that come with DirectLink™?

• Brand marketers trying to understand what people think about their products.
• Sales managers who want to improve and tailor their sales pitches.
• CEO’s who want to test a new strategy with their customers.
• HR managers who want to assess employee morale or improve internal services.
• Trade association managers who are seeking ways to raise awareness and open doors for their members.
• Foreign trade development officers who want to better understand what makes their country attractive.
• Tourism departments that want to know what will motivate consumers to visit.
• PR and ad agency account executives who want to know what’s on their client’s customers’ minds so they can address them in marketing communications.
• University and college administrators that want to understand and respond to student or alumni views.
• Non-profit development directors seeking the keys to increased fund raising.
• Political campaign managers who need to understand what voters want.

The list goes on and on.  All of the above have used DirectLink™ in the past and now these new features make it even more effective and faster.  We can make your social media programs more effective and improve the ROI of research or direct marketing programs.  If you’d like to know how DirectLink™ can help you and see an online demo, let us know.

Tags: Assumptions, CALCAT©, Change, Consumers, Corporate Myopia, CRM, Customers, Database, Demographics, DirectLink™, Forward-Looking CRM, Future Performance, futureshift, Marketing, Multi-variable, Multi-variate, Outcomes, Past Performance, Relationships, Social Media, Strategy, Winning