Business Newsletter ~ Volume 6, Issue 8 ~ Sept 2007
NOTE: For a printable PDF version of this Newsletter click-here. |
Donald's "Quote of the Month"
"The future belongs to those who can see possibilities...and who know what to do with them."
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"Greetings". We have more timely and thought-provoking articles for you this month, so read on. The whole thing will take about seven minutes to read.
1. The future belongs to those who can see possibilities...and who know what to do with them.
(time to read this article is about 2 minutes)
Last week I had two young men doing some chores at our country house and we got into a conversation about what they'd like to do with their careers and their lives. They both wanted to have their own business some day and be very rich but they whined and complained that there are no real opportunities out there as "all the good ideas had already been done." They simply couldn't see any possibilities. How sad.
I told them about another "visionary", Mr. Charles Duell, the head of the United States Patent Office, who, in 1899 advised President McKinley that the Patent Office should be closed down to save money because everything that could have been invented, had been invented.
The truth is that there has never been more opportunity to create and market new products and services locally, nationally or globally.
If you want to constantly trigger your creative juices about product, service and business innovations, simply subscribe to Springwise ( www.springwise.com), an extraordinary free E-Newsletter that reports on a number of innovative new products, services and business start-ups each week. Below are a few wonderful examples of entrepreneurial creativity from recent editions of Springwise. While reading them, ask yourself...
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What challenges, fears or frustrations do specific groups of people have in their lives around which I could create a profitable product or service? |
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What special knowledge, skill, passion or connections do I have that others would pay for? |
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What is currently being wasted or misused in our society from which I could create an environmentally friendly and profitable business? |
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In what new locations or in what new ways could we sell our current products or services? |
12 new business ideas from recent editions of Springwise:
1. For a modest annual fee, residents of New York City can now have copies of their house, car or business keys safely stored by NewYourKey ( www.newyourkey.com). Then, if the customer loses their keys, NewYourKey will deliver a spare within an hour, any time of day or night.
2. Two British companies are now offering certified halal meat-based baby foods ( www.halalbabyfoods.com) to Muslim mothers who, because of the lack of such products in the past, often delayed the switch from milk to solids, leading to babies developing iron and protein deficiencies. The offerings include ten varieties of baby food suitable for infants from 4 to 7+ months old.
3. Following the trend to sophisticated and leisurely pursuits for an affluent population, entrepreneur and cheese expert, Sara Vivenzio, has opened the Cheese School of San Francisco ( www.cheeseschoolsf.com) which offers beginner to advanced courses in cheese selection, storage and wine pairing as well as courses in cheese making. Sara also offers private and corporate events.
4. CloakVRoom ( www.cloakVRoom.com) provides portable coat and small-package checking services at music festivals and other large outdoor events using large, customer-fitted trucks. Customers are given a numbered wristband with cloakVRoom's telephone # and Website so that if anyone leaves an item behind, they can reclaim it and have it mailed to them.
5. A British company ( www.specialbike.co.uk), recycles old or abandoned bicycles into custom tailored, one-of-a-kind bikes in eye-popping colours and finishes.
6. Women entrepreneurs in the UK, Moscow, Dubai and Teheran have started "pink" taxi companies with female drivers for female passengers. The intent is to create a safer environment for women passengers and drivers. In Moscow, the original fleet, consisting of two pink taxis, has grown to 20 cars and 27 drivers.
7. Umbrolly, a British umbrella company now places umbrella vending machines in public spaces.
8. 3.5 billion wire hangers are tossed into landfills every year in the United States. Hanger Network ( www.hangernetwork.com) has developed a sturdy and cheap alternative...a dry cleaner's hanger made entirely from recycled paper. Because they're paper, they can be completely covered in full-colour advertising and the advertisers pay for the hangers.
9. Since newborns grow out of their clothing every month or so, a German company, Lütte-Leihen ( www.luette-leihen.de) has come up with a solution...for a fixed monthly fee they provide parents of newborns with a range of bodysuits, pajamas, sox and hats that have been cleaned and can be exchanged for a larger size every month as the baby grows. Besides saving parents the expense of clothes that are worn only briefly, Lütte-Leihen's service spares them the hassle of shopping for new items during a period in their lives when time is at a premium.
10. Pascal Riffaud, former concierge at hotels like the St. Regis in New York and the Ritz in Paris, has created a restaurant booking service in New York called PrimeTime Tables, specializing in impossible to get reservations. For an annual membership fee of $450 per year and a per-reservation fee, Pascal will get you a prime table at the most exclusive restaurants...guaranteed.
11. Avis Car Rental now offers fully insured and qualified chauffeurs to drive your Avis rental car for an additional $30 per hour. The drivers pick up customers in their rental cars from the baggage claim area or passenger loading zone, then chauffeur them around town. Finally, the driver will drop them off back at the airport and return the rental car at the end of their trip. The saving from hiring a driver and a car from a limo company is about 35%.
12. Thanks to a Canadian company, Allergy Translation Card ( www.allergytranslations.com), international travelers with food allergies or dietary restrictions can now get customized cards printed out in any one of 22 languages to show to restaurants, grocers or hosts overseas. Customers simply log onto Allergy Translation's website and enter information about their particular food allergies or sensitivities. Then, they select the language of their destination and for $8 they print out the information they need. It's an easy way to ensure that dietary restrictions are accurately communicated, without having to fumble through a foreign language dictionary.
The point here is that the world is still full of possibilities. You just have to see them and know what to do with them. Don't forget to sign up to receive the free, weekly Springwise ( www.springwise.com) E- Newsletter. It's a great "possibilities" idea generator.
2. If the world were a village of 100 people, this is what it would look like:
(time to read this section is about 40 seconds)
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There would be 60 Asians, 14 Africans, 8 Latin Americans, 5 from the USA and Canada and 1 from the South Pacific. |
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51 people would be women and 49 would be men. |
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67 would be non-Christian and 33 would be Christian. |
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89 would be heterosexuals and 11 would be 'gay'. |
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6 of the villagers would own 59% of the wealth of the entire village. |
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70 of the villagers would be uneducated and only one would have any post-secondary education. |
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7 of the villagers would have access to the internet but only one would actually own a computer. |
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50 of the 100 villagers would be undernourished and 33 would be without access to a safe water supply. |
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One would have Aids. |
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One villager would die today...and 2 would be born. |
Would you want to live in that "village"? Well, you do.
3. The simple truth about effective business leadership...in just 3 minutes:
Much of my work over the past few years has been in helping business owners and managers become much more effective leaders. Most of these folks spend 90% of their time working "IN" their business and 10% or less of their time working "ON" on the business. They are not proactively managing their business, leading their people, creating compelling customer value, managing their bottom line and creating an extraordinary future...and it's going to cost them big time!
Working "IN" their business is easy, they've done it for years...so they retreat to the familiar. If you fall into this category, here's the short version of what leadership is...and how you can make it work for you.
1. Our first job as leaders is to create clarity about what we commit to deliver, what we commit to become...and how we'll behave along the way. By creating clear commitments we "get everyone singing from the same hymn sheet." , to quote my grandmother. Specifically, leaders must be clear about...
a) The compelling value and experiences that we commit to deliver to every customer, every day ...and what that value and experience must look like in 3 to 5 years to be both competitive and profitable. What value and experiences will "grab" your target customers, clearly differentiate you from your competitors, make you "famous" and grow your bottom line?
b) Then, we must be clear about what the business commits to become in 3 to 5 years, including...
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how big it will be. |
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the bottom line that it will generate. |
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where it will do business, including where it will buy, sell or produce. |
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what the business model will be and how the organization will be structured. |
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the values it will live by. Our "values" are our fundamental commitments to ethics, excellence, life's priorities and the treatment of others. |
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the technology that will drive it. |
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what the organization will need to learn and the talent that it will need to attract. |
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how it will communicate with customers and prospects as a group...and as individuals. |
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who its competitors are likely to be and what their compelling value will likely be. |
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what % of our growth will come from the organic growth of what we're doing now...and what % must come from new products or services, new locations, new markets or acquisitions. |
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what the working capital requirements will be. How much of that will come from operations, how much from outside...and from where? |
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the processes, systems and training that will be required to make all of this happen. |
2. Our 2nd job as a leader is to create a staff team that can deliver the businesses commitments to customers, to each other and to its extraordinary and profitable future.
3. Our Leadership Job #3 is to passionately communicate and reinforce each of our commitments in everything we do, say and decide, every day.
4. Then, we must measure performance and constantly look for behavior to praise, celebrate and reward.
5. Finally, look for behavior to correct. Lack of accountability and failure to deal with non-performance are two of the biggest challenges facing many businesses today.
As leaders, how do we create accountability and deal with non-performance? It's actually quite simple. First, we must create that clarity about what we commit to deliver, what we commit to become and how we commit to behave along the way. That's why creating "clarity" is Leadership Job #1.
Then, when we see behavior or results that are not living up to any of our "commitments" we sit down with the individual(s) responsible and ask them four straightforward questions...
Question #1: "With regard to this specific performance shortfall, do you understand what we're committed to?" And the answer is either "Yes" or "No". If the answer is "Yes, I understand what we're committed to with regard to that.", move on to Question #2. If they say that they did not understand, there are two possibilities.
The first possibility is that they truly did not understand the commitment, in which case, you haven't done your job as a leader and it's up to you to fix that by creating and communicating commitments. The second possibility is that they understood perfectly what they were to do and how they were to do it, but they're trying to "weasel out" of taking responsibility.
In my experience, over many years in business, at least half the time that our people tell us that they didn't understand what they were to do or how they were to do it, they're just being "weasels". They're trying to put the blame back on you, the boss. Get rid of "weasels"...they're killing you.
Question #2: Next, ask them, "Do your embrace and support that commitment?" And the answer is either "Yes" or "No". If the answer is, "Yes, I embrace and support that commitment.", move on to Question #3. If the answer is "No, I don't.", there are now three possibilities.
The first possibility is that they honestly believe that this particular commitment is unrealistic and out of touch with reality, in which case they have a responsibility to engage you in respectful debate to get you to change your mind about that commitment. A business that encourages 'respectful debate' is a healthy environment.
The second possibility is that they could change their mind and 'get with the program'. The third possibility is that they could leave. There is no room in a business for people who do not fully support the very things that business is committed to.
Question #3: The third question is a call to action. It is, "Can you make it happen? Because the reason that we're having this conversation is that it isn't happening right now." There's another important question to ask at this point which is, "Is anything preventing you from making it happen? Because I'm here to provide support and eliminate roadblocks? But, given all of that, can you make it happen, or not?" And the answer is "Yes" or "No".
If the answer is, "Yes, I can make it happen.", go to Question #4. And, if the answer is, "No, no matter how much help and support you give me, boss, I just can't make it happen.", it's time for them to move on.
Question #4: The fourth and final question is, "When will I see it happen?" Agree on a time by which the deficiency will be corrected and then follow up religiously. Without diligent follow-up, the entire process collapses.
If the solution to the problem is longer term, you will want to alter the fourth question to, "When will I see a step-by-step plan?" and then you will monitor each step to ensure that the project is on track.
So, to briefly recap, the four questions that create accountability and deal with non-performance in your business are, "Do you understand our commitments? Do you embrace them? Can you make it happen? When will I see it happen?" These four simple questions can transform your business.
There you have it...some clear insights about effective business leadership in just three minutes. How will you use these insights to proactively manage your business, your team and your bottom line?
4. What really created our high standard of living...and how close are we to losing it?
(time to read this article is about 2 minutes)
Our standard of living, our political and military power and our accumulation of wealth...in fact, most of what we've achieved in the 'western world' in the past 100 years has been based on our ability to do three things extraordinarily well...
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Innovate, design and develop an endless stream of high quality, value-added products and services that have made our lives more comfortable, efficient and fulfilled. |
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Our ability to be the world's most cost-effective producer of those products and services, while paying wages that created an affluent middle class that could afford to buy those products and services in large quantities. |
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Our ability, through effective marketing, to build "Brand relationships" with customers around those products and services that have created a degree of customer loyalty or 'ownership'. |
This whole process has been enabled by a series of national and international laws with regard to patents and trademarks, which have protected and encouraged innovation and investment.
But all of this is changing. The 'western world' is no longer the most cost-effective producer of anything, so we've lost #2. Many of my clients have assured me that it really doesn't matter who makes their stuff as long as they still control the design function and own the Brand relationship with the customer.
But the design and creative function is also slipping away from us. More and more, North American and European companies are sending their product design and development to Asia. Companies like Motorola, Phillips, Eli Lilly, Dell, Boeing, and Proctor & Gamble, to name just a few, are outsourcing to Taiwan, India and China the very product design and innovation which has been their big 'competitive advantage'. The short-term advantage is to speed up innovation and reduce costs, but in the longer term, they're giving up their very soul.
The most prestigious USA Design Award, presented each year by the Industrial Designers Society of America, this year went to a design firm in Hong Kong.
When "off shore" contract manufacturers only know how to produce that which others create, they're at the mercy of the creators. When they have no creative ability and no Brand relationship with consumers they get beaten up on price because they have little power. But once they know how to create it and make it, the stage is set for the next and last step.
This last step is that the companies to whom we have given the task of both designing and manufacturing most of the world's products figure out the Branding and consumer relationship part of the game, that will allow them to take home all the marbles!
One of the best examples is LG, a Korean maker of home appliances that has gone from contract producer to prominent world Brand in a very short time.
Another example is Motorola who hired Taiwan's Ben Q Corporation to design and produce a new cell phone for them. Ben Q developed and made the phones for Motorola but they also produced them under their own Brand name and sold them directly in China for a much lower price.
And, if you're deluding yourself that this won't happen because Asians aren't any good at marketing or Brand building, just think about Lexus, Toyota, Honda, Cannon, Sony, Panasonic, Yamaha, Samsung, Hyundai or LG. It took the Japanese 35 years to go from making cheap party favors to producing world-leading Brands in things like cars, electronics, musical instruments, cameras and heavy equipment. It has taken the Koreans under 20 years to make similar progress...and the Chinese will do it under 10.
Add to this China's unwillingness to abide by international patent and trademark law, resulting in a level of commercial piracy that costs the legitimate creators of products in the 'western world' billions and billions of dollars.
So, little by little, we are giving up the three things that created our standard of living, our wealth and world power. It will take a few years, but this fundamental shift in economic power will affect every business in the western world, whether you're a manufacturer or not, because it will so profoundly affect our economy, our standard of living, our world standing and our confidence in ourselves.
Hey, don't shoot the messenger! Just think about the implications of this inevitable trend for your business...and decide what you're going to do about it.
5. Bits & Pieces:
(time to read this section is about 40 seconds)
ITEM #1: "Stand back...I have peanuts and I'm not afraid to use them!" Did you know that peanuts are used in the manufacture of dynamite?
ITEM #2: The first breakfast cereal ever produced was Shredded Wheat. It was invented in 1892 by Henry Perky of Denver, Colorado.
ITEM #3: Being happy can add 7 years to your life. So, take responsibility for your own happiness. Make a conscious decision to be happy every day. Appreciate what you have rather than focusing on what you don't have. Eliminate negative self-talk. Hang around positive, energized people and get energy suckers and guilt trippers out of your life.
ITEM #4: It is estimated that 9,600 Mexicans illegally cross the border into the United States every day...and, with the predicted near collapse of Mexican oil production over the next few years, it is thought that the number of illegal immigrants may double or triple.
ITEM #5: Believe it or not, there are 82,000 registered charities in Canada. That's about one charity for every 130 families.
ITEM #6: 75% of the Ferrari's sold in the State of Florida end up being repossessed by the Dealer for missed payments.
6. How do you define "success" in your business...and in your life?
(time to read this section is about 15 seconds)
This is a simple, important and obvious question for any business...but it's almost never asked. To help my clients develop clarity about what "success" looks like in their business (and their lives), I've created a simple Template that encourages thoughtful answers to this important question...and thoughtful input from others.
To access this Template, just click-here for your complimentary copy.
7. Our "Quiz of the Month":
(time to read this section is about 30 seconds)
"Thanks" to all of you who answered our August Quiz Question, which was, "Which country is the 2nd largest source of investment capital to Mainland China?"
The correct answer is...the British Virgin Islands which is a Caribbean tax haven.
"Congratulations" to Dave Barber of Shoppers Drug Mart, this month's winner who selected as his prize our DVD on "Human Marketing...how to increase market share and profitability in the face of ever-stronger competition".
This month's Quiz Question:
The world's #1 per capita consumer of chicken is India. Since many Indians are Hindus, who are forbidden to eat beef, this makes sense. But what country is the world's 2nd largest per capita consumer of chicken?
Send your guess to Sharen Skene, our wonderful Director of Marketing, at sharen@donaldcooper.com. Each correct answer received within 10 days will go into the 'pot' and one winner will be randomly selected. The winner will receive his or her choice of any of our excellent Video Seminars worth $60 to $80.
8. That's all for this month:
(time to read this section is about 15 seconds)
"Thanks" for all of your great feedback and suggestions. We especially love to hear of your successes using our insights.
Don't forget to visit our Free Articles section on our website for lots more valuable info on how to sell more, manage smarter and make more money in your business.
Also, let us know what you'd like to hear more about...or less about. And, do send us your stories and examples of great, horrible or just plain bizarre business practices that you find in your travels.
Finally, if you know of others, anywhere in the world, who will find value in this E-Newsletter, we'll appreciate your sending this along to them and inviting them to subscribe at www.donaldcooper.com.
Donald Cooper, MBA
Certified Speaking Professional
Member of the Canadian Speaking Hall of Fame
For information about booking Donald for your company or Association, contact Sharen Skene our wonderful Director of Marketing at Sharen@donaldcooper.com.
Back Issues of our Newsletters are available on our website (along with lots of other valuable articles and implementation tools). | 
