Monthly Archive for August, 2007

Where were you when … ?

I was at a youth camp in a cozy little mountain campsite. The morning was cold, I remember, and as I sloped into the kitchen where the team were preparing breakfast, I was told that Princess Diana was dead. There was sense of disbelief. Except for that mind numbing piece of information, that youth camp may have slipped from memory forever. But the mist hovering mid tree height across the dull brown grass lawns, even the sound of the small stream that ran past the bottom of the camp - all these things are indelibly imprinted on my mind. Because that’s where I was when Diana died. It was 10 years ago exactly today!

There are moments like this that occur every few years. Because of global media coverage, the last 50 years have increasingly provided globally shared moments. These would include (in reverse order):

  • 9/11 and the fall of the Twin Towers
  • The release of Nelson Mandela
  • The Fall of the Berlin Wall
  • The assassination of Martin Luther King, Jr
  • The death of John F Kennedy
  • VE day

Generational theory says that moments like this become iconic for all people, but they are values shaping for the youngest members of society. It is these global events that have shaped people around the world over the past century. For more on generational theory, see “Mind the Gap“.

Corporate Chaplaincies

As part of the trend towards more transparency and an interesting rise in spirituality (or is it just SQ - spiritual intelligence?), I have noticed companies using spiritual advisors. The Economist has noticed this trend too…

Praying for gain

Aug 23rd 2007 | WASHINGTON, D.C.
From The Economist print edition
A fad for piety infiltrates the realm of Mammon

DOES your job seem pointless? Are problems at home draining your zest for work? Is your boss a blithering idiot? Then why not consult the company chaplain?

Corporate chaplains are a booming business in America. There are roughly 4,000 of them (precise numbers are hard to come by) working everywhere from giant multinationals to tiny family firms. And their numbers are growing. America has several thriving rent-a-chaplain companies, and two seminaries that offer degrees in corporate chaplaincy, yet demand still exceeds supply.

Some companies prefer to rely on in-house chaplains. Tyson Foods, a meat-processing giant, employs 128 chaplains to minister to 85,000 employees in the United States, Mexico and Canada. John Tyson, the company’s boss, also employs an ordained minister as an executive coach to help him wrestle with ethical questions.

Continue reading ‘Corporate Chaplaincies’

The death of the cliche

There was a great little piece in The Economist on language and cliche’s. Not quite world changing, but fun.

Plus ça change? Not quite
Aug 9th 2007, From The Economist (subscription needed)
Clichés are always tired. Increasingly, they are also wrong

TECHNOLOGY constantly overtakes language. Recent additions to the Oxford English Dictionary have included po-faced entries for “Google” (the verb), “wiki” and “mash-up”. But most clichés are stubbornly indifferent to such concerns. Indeed, they often act as a linguistic fossil record, preserving objects and behaviour that have long since fallen into petrified obsolescence. Industrious sorts no longer burn the midnight oil. Flashes in the pan are common even if the flintlock muskets that gave rise to them are museum pieces. Colours are still nailed to masts, metal though they now usually are.

Continue reading ‘The death of the cliche’

Who you are, not what you sell

First published in Cover magazine in Oct 2006.

We all know that change is now a constant reality. But, less obvious, is the fact that the daily changes we encounter are merely symptoms of an irreversible, radical transformation of our society. As we chart a course into the 21stcentury, we discover that consumers are no longer simply passive recipients of our products theyre involved, knowledgeable, powerful and discerning. And that changes everything.

The Digital Revolution?

In virtually every industry today, were generating more products and services than at any point in history, delivering better quality through an ever-growing number of channels, at prices that constantly put pressure on our margins and profitability. At the same time, cellphones, websites, and a proliferation of media sources all combine to give consumers increased access to more information, at greater speed and lower cost than ever before. There are two major implications of these shifts: (1) there are less and less ways by which competitors can differentiate themselves, as they sell similar products at similar prices in similar ways; and (2) detailed comparisons between competitors are easily achieved and are now a matter of course for consumers.

SIDEBAR QUOTE
The surplus society has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.
Kjell Nordström and Jonas Ridderstråle, Funky Business

Continue reading ‘Who you are, not what you sell’

Generation Y: Its life, Jim, but not as we know it

First Published in Marketing Mix Magazine (2001)

STRAP: The age of the customer

I dont remember Apartheid, but I know all about AIDS. I dont care who won the Cold War or wonder who shot JFK, but I know the answers are just a click away if I need them. I was weaned on a diet of mass media and massive choice, and I know how to use both to my advantage. I am Generation Y. And if you want me to listen, you have to speak my language.
By Kim Penstone & Graeme Codrington

The age of the customer is upon us. Never before have customers had so much choice, and so much information at their disposal to influence this choice. Never before have they had the confidence to use this power to control the companies that cater to them. And never before have they had the extent of power that they have today. Until, of course, tomorrow.

Because future generations will have access to even more information than we have today. Generation Y will be wired to the hilt, capable of absorbing and processing information more quickly and efficiently than any generation before them. And they will have both the confidence and the power to use this information to build or destroy brands at the click of a button.

Continue reading ‘Generation Y: Its life, Jim, but not as we know it’

Home Depot pays out big time - for what?

This isn’t new news, but as I was doing research into Executive pay packages, I picked up this info from earlier this year.

On 3 January 2007, Bob Nardelli (once in line for GE top spot) left Home Depot, where he had been CEO for 6 years. Just four months earlier he had said (to AP) he would not consider leaving the company. During his years, there was a 6% drop in share price, during the time of a fairly rampant market, and the steady increase in competitor’s shares (especially Lowe’s). To be fair there was a massive drop after he joined, and the last 4 years have seen a slow and steady climb, but nevertheless, he has underperformed against the market. Home Depot, which has 345,000 staff and is second only to Wal-Mart among US shopping chains, and the world’s largest DIY store.

Nardelli had come under fire for his massive pay package (he earned $228m in his 6 years) while at Home Depot, especially since the last set of results he had presented were anything but spectacular. He had infuriated shareholders in May 2006 by refusing to take any questions during the company’s annual meeting - at which he was the only board member to turn up. He had angered unions, who were scathing about him - one sent activists dressed as chickens to Home Depot’s annual meeting to highlight the board’s lack of accountability.

But, amazingly, on leaving the company he received a $210 million compensation package that includes $20 million in cash severance and $32 million in retirement benefits. Nardelli has agreed not to compete with the company for one year, not to solicit employees or customers of Home Depot for four years, and other conditions - if he complies he could be entitled to a further $18m or so. (Although, as one blogger points out, surely with his record, you would want him to go to a competitor).

CO2 Neutral products are becoming “fashionable” but are new product launches enough to target the “ethical consumer”?

ibuyeco, a new eco-friendly car insurance scheme that offsets 100% of customers’ CO2 emissions for the duration of their policy, was launched in the UK at the end of April 2007. The company has just started a strong above the line advertising, including television and other national media.

Created by the Budget Group, one of the UK’s leading insurance intermediaries, ibuyeco is one of the first car insurance products to offset 100% of a car’s carbon emissions. Customers pay an additional amount to their premiums. Payments are calculated on the type of vehicle and the estimated mileage, details provided by customers. Using this method, the typical family car travelling a mileage of between 10,000 and 12,000 would require an offset fee of roughly £20, for example. ibuyeco buy carbon credits through The Carbon Neutral Company who in return puts the money towards projects that reduce carbon emissions. These projects fall into different categories including: increased energy efficiency, forestry projects and renewable energy, and are based in both the UK and overseas.

The launch of ibuyeco is the result of a social trend that TomorrowToday has been researching for sometime and which we are calling the “rise of the ethical consumer�.

In November 2006 Barclays announced the first carbon neutral debit card and we’re expecting a large number of companies to follow ibuyeco and Barclays. The important issue though is, are these companies jumping onto the global warming marketing bandwagon or does carbon reduction form part of the company’s values and long term strategy? Another question is why did Budget need to launch a new company and why doesn’t it position the Budget brand as an ethical brand? Hiding behind a new brand for marketing reasons will not pay dividends unless the company itself changes.

When it comes to targeting the “ethical consumer�, made largely out of Generation Y, companies had best practice what they preach. If they don’t, this generation who is highly connected via the web will spread the word and ruthlessly weed out the pretenders.

Companies need to do more than launch new products and advertising campaigns professing to support initiatives that reduce global warming. Companies need to be taking steps towards reducing their own carbon emissions and communicating their efforts, in carbon friendly ways! Carbon reductions need to be part of the company’s day-to-day strategies and way of work. It has to become integrated into the company’s culture and demonstrated in a number of ways, from the way they employ recruits to how they run their meetings and sell their products. There is no point a company asking consumers to buy its product so that they, the consumer can contribute to carbon emissions, when the company itself is contributing to carbon emissions by making clients fill out massive application forms and accept loads of marketing mailings.

Our advice to companies thinking about targeting customers using carbon reduction schemes, is to first integrate carbon reductions into the fabric of their company’s culture before they launch new products. The new ethical consumer will buy from your company because of who you are (your company’s values) and not because of what you sell.

Leadership vs Management: A new look at an old question

This article was first published in the Boardroom magazine, as part of Graeme’s regular column, in March 2007.

Leadership vs managementAsk anyone and they’ll tell you. There’s a difference between managers and leaders. And there are any number of books, self-help gurus and consultants who will define precisely what that difference is and help those who want to become leaders to do so in 3 (or 7 or 13 or 21) easy steps. The problem is that most people think theyre leaders simply because they made it to the top of their pile. Yet, leadership is much more than this.

Are you a leader?

One of the most quoted leadership experts is Warren Bennis, a popular writer of leadership resources and business professor at the University of Southern California. His distinction between leaders and managers is famous: Managers are people who do things right and leaders are people who do the right things (Learning to Lead: A Workbook on Becoming a Leader, Perseus Books / Addison Wesley, 1997). This various conceptions of the difference is often accompanied by lists of what leaders do (innovate, inspire trust, challenge status quo, seek risks, etc) compared to managers (implement, control, accept status quo, seek comfort and safety, etc).

After reading those lists, it is almost impossible to see managers as anything other than lesser beings than leaders. No wonder then that everyone wants to be a leader! And absolutely no wonder that those at Exco or Board level would not for one minute think that they might not be leaders that they might be nothing more than glorified managers! Yet, this is what many of them are: managers.This may seem like a bold statement, but the world is currently in crisis because of a lack of real leadership in all spheres of life.

The problem is that people with the title of leader often do nothing more than manage. This is true from small departments to large countries.
Continue reading ‘Leadership vs Management: A new look at an old question’

Leadership lessons from unexpected sources

This article was first published in 2002, as part of Dictum Publishing’s Leadership Session feedback.

A Brief History of Humanity

LeadershipThe simplest summary of the broad sweep of human history is this uncomplicated thought: Let something else do the work. From the earliest hunter-gatherers, whoused sticks, rocks, flint and fire, through farmers who tamed animals and water to add extra strength to human muscles, to the Industrial era, where peoples muscles were replaced by machines, internal combustion engines and smoke-drenched factories, humankind has been on a quest to let something else do the work. These first 3 epochs of human history (subsistence, agrarian, industrial), spanning more than 10,000 years, brought us to the point in history when we only get physically tired for fun.

Having reached this point, we turned our quest to let something do the work, to the next most obvious human function: thinking. For the last 50 years, the information era has been in full swing. The theme of this era has been allowing machines to do more andmore of our thinking for us. The logical conclusion of this trend is that in a decade or so, we will only do thinking for fun.Any functions that are based on routinely applying set rules to given situations, however complex, will be the first to be completely replaced by computers. This will affect everyone from the accountant (the most obvious place to start), through lawyers and teachers, all the way to doctors (especially the GP).
Continue reading ‘Leadership lessons from unexpected sources’

Its the Internet, stoopid…

My sister is a primary school teacher, teaching computer skills in northern suburbs Johannesburg. She told me about an interaction between two kids in her class this last week:

Boy: “Ma’am, what is an encyclopedia?”

Teacher: “Its a book where you can look up facts.”

Girl next to him: “It’s like the Internet, man!!”

You gotta love those Millennial kids.