Archive for the ‘Business News & Trends’ Category
It wasn’t that long ago that a tremendous scare went through the internet community. The issue had to do with the huge amount of data that can be collected on individuals using search engines online. This large body of information naturally drew the attention of the Homeland Security agencies who are charged with the job of finding out all they can about potential sleeper cells of terrorism in this country.
The stand off came when the government began to demand access to the search records of all users of the major search engines. When this upcoming struggle for privacy began to come to a head, many of us who depend on search engines for both personal and business research began to get that “big brother is watching” feeling.
It’s a tough compromise. We know that our government must have the ability to find and put a stop to security risks that might result in another disaster like September 11th 2001. But at the same time, Americans are tremendously protective of their liberties, their privacy and their right to be left alone by the government.
Of all of the search engines who were in the spotlight during that struggle, Google’s resistance to allowing undue invasion of privacy of their customers stood out as an act of courage in a difficult confrontation. It turned out that Homeland Security really wasn’t becoming “big brother” and was simply researching how to use statistical data to possibly find terrorist patterns in search engine usage. But many of us remember that while Yahoo and others knuckled under quickly, it was Google who stood up and protected user information rather than immediately turn it over to Uncle Sam.
This stand reflects a long established business ethic that Google has maintained to be protective of the data it collects about users of its search tools. That protective nature has more benefits than just building our confidence that Google is a safe tool for all of us to use. Google indeed has at its disposal a tremendous library of personal information on anyone using its search tools. And as the dominant search engine in the industry, this potential includes just about anyone who accesses the internet.
The information that can be collected from you and I as we use the internet can tell an interested party a lot about your interests, what kind of business you are in, your religious views and your political affiliations. Powerful analytical tools are available to take large volumes of search information and translate that into profiles that would be of great interest to the government and to marketers who would love to be able to target specific populations for sales.
For Google, this information has significant value to them as they fine tune their search engine methodologies. They can methodically analyze this data to draw conclusions about how their search tools are working and how they should update the formulas that drive those tools to be more in step with how the internet audience is using cyberspace. Yes, this is taking advantage of their already dominant position to secure that position and make their toolset even more capable of staying ahead of the game. But we really cannot fault Google for using this data in that way. That is just good business.
It turns out then that Google’s protective posture when it comes to that massive database of search information serves their purposes extremely well. If they can keep this mountain of very specific data secure and proprietary, it represents a trade secret of tremendous value to Google to help them maintain their market superiority for a long time to come.
This is a case of the needs of the market serving the public good well. For as Google protects our search information so only it can benefit from such knowledge, they also are protecting our privacy from the prying eyes of overenthusiastic government agencies, hackers, marketing campaigns and even the terrorists who could use that information for insidious purposes. Therefore we can be thankful that Google jealously guards this data for its own uses because in the process, they are protecting us along the way.
Every now and then a business book comes along that revolutionaries how the business world views an area of focus. One such book had the amusing title “Who Moved my Cheese” by Spencer Johnson. This short book that is illustrated like a children’s story has some profound ideas in it that will radically change how any business approaches the marketplace. It is a book that has had his biggest impact in helping employees who have been displaced view their job change. But the ideas that are made simple in “Who Moved my Cheese” can impact virtually every area of business dealings.
The book communicates its message through a story of a mouse who finds that the place where he can find his cheese is no longer reliable. The mouse’s friend continues to go to that same place to find more cheese only to continue to get hungrier and hungrier. But the hero of the story finds the new location of his cheese. When he finds his new source of cheese, he not only is astounded by the bounty but that even after telling his friend of the new source of cheese, that friend continues to insist that his cheese will be there where it always had been before and that in fact, the hero of our story is mistaken about the new location of cheese.
This, obviously, is not a tale about cheese location. It is a parable of how to handle change. The core value being taught by “Who Moved my Cheese” is that we cannot always look to the same resource for our supply. Markets dry up, businesses go through slumps and have to lay good people off and revenue streams change.
But one thing is for sure. There is always a new reservoir of funding somewhere in some market. And the wise business can foresee a change in the marketplace well in advance and make the changes they need to make so that they go where the money is, or move with the cheese to find the new source of rich funding and tap into it.
It is more than just a parable about looking for a new job. But it sheds light on the plight of the unemployed. So often someone who loses their job gets stuck in a mental cycle of waiting for their old job to hire them back or looking for an identical job in a very similar industry. However, if that industry is under economic pressure or if the business paradigm for that industry has changed dramatically, there may no longer be rich sources of funding and employment availability there that was once so reliable. In short, the cheese has moved.
This lesson has rich wisdom in business beyond the employment scenario. The businesses who have learned to be adaptable in a changing marketplace and have made the changes to follow the changes to the new source of “cheese” are the businesses that survive decade after decade. The grocery industry has seen that kind of change. Many grocery chains went belly up waiting for the cheese to come back to the old paradigm. But others saw the invasion of the big discount stores such as Wal-Mart and found ways to combat that change, to find new niches in the industry where an untapped market need existed or to compete in the new business paradigm. Other industries where such dramatic changes have forced businesses to find out who moved their cheese are the record industry and the book sales business environment that have been so heavily impacted by internet sales.
But those businesses have survived. And if they can be aggressive and adapt and change with the markets, it’s a good example for all of us as we continue to look for the new source of “cheese”.
The business paradigm in virtually every department of the modern business has been undergoing continuous change in the last ten years to such an extent that it becomes necessary to step back and review how we do business in all aspects of corporate life in light of new markets and new ways even our employees do business. This is as much true in our Human Resource Department as it is in Marketing. The labor pool is changing and the impact on the bottom line of the business can see be serious if we don’t change how we go about recruitment and view employee retention in light of the changes to the available educated labor “out there” to draw upon for our staffing needs.
Employee retention and how we approach the concept of keeping employees over many years is an area where certain assumptions must be challenged if we are going to stay competitive. Some assumptions concerning employee retention that are rapidly becoming obsolete include…
§ That there is an unlimited resource of eager employees out there to fill my staffing needs.
§ That it’s a good idea to cycle employees in and out of the company because that keeps benefits costs down.
§ That the “my way or the highway” approach to management is the right way to go to enforce your vision for how work will get done.
§ That employees are commodities. There are always more where they came from.
§ That employees should be grateful just to get a paycheck.
§ It is better to keep a youthful staff and to move older employees out of the work place.
The labor pool in changing with shifts in the demographics in the country and those changes make these assumptions obsolete and dangerous if we expect to keep a staff that can provide quality support for our business objectives. Because the “baby boom” is leaving the market and being replaced with a smaller and less skilled youth population, we have to adjust our expectations both in terms of hiring and retention.
Probably the biggest change we have to get used to is to begin to view employees as valued assets and to give significant attention to retention, not just once a year at performance review time but on a daily and weekly basis. The assumption that employees will work for us for a paycheck and that we can exert leverage in the management situation because of a large labor pool we can tap to replace unhappy employees has become a flawed approach to people management.
The truth is the pool of talented labor is shirking at an alarming rate. If you have a staff of skilled people who you have invested in to bring up their knowledge and skill levels, that is an investment worth. Skilled and educated employees are in short supply and, above all, they know they are in demand so they can move from job to job without difficulty if they become dissatisfied at their current work place.
These changes to the paradigm of emplacement justify a corporate wide reevaluation of retention policies and strategies. The HR Department should be on the forefront of changing the business’s attitude toward employees from one of “us against them” to one of employee empowerment and partnership.
The managers who will excel at retaining valuable, productive and trained employees will be those who see the employment relationship as a contract in which management has responsibilities to employees to assure their continued growth and success just as the employee must pull his weight in the company. A partnership approach to management will go a long way toward improving the company’s retention profile which will benefit the business in a multitude of ways.
For decades, the classic model of how a business organizes its computer services department was to establish a separate IT department with an independent management structure which may extend all the way to the executive suite. Over the years, the autonomy of that centralized IT function took on almost mythic proportions and in some cases resulted in abusive attitudes and ways of doing business that almost gave the impression that the business existed to serve the IT department rather than the other way around.
This was a particularly prevalent model when all business computer processing was done by a large centralized mainframe computer, usually made by IBM. These mega computers are and were expensive and complicated to program and operate which dictated that to be successful, a business had to keep on staff a small army of computer specialists, many of whom seemed to speak an entirely different language and come from a different culture than those in the rest of the business.
This was a natural and necessary business paradigm under the circumstances when “big iron” ruled the IT community. However, the last several decades have seen changes to how IT gets its business done. First was the introduction of smaller, powerful systems driven by operating systems like UNIX that were capable of great efficiencies that challenged the supremacy of the mainframe in business.
The movement toward network computing which was a natural business evolution to facilitate greater data access and to build stronger communications between spread out departments in the business world further eroded the need for one centralized powerful computer operated by a select few who spoke a cryptic language. Network computing started the process of democratizing computing power in the business world. With the new dominance of the internet and the need to take the business paradigm into cyberspace, the business model of decentralized data processing has taken on new meaning and importance.
In many businesses, the final stage of IT decentralization has begun to become a reality. By locating centers of operations and development authority and responsibility directly at the department level, the efficiencies of IT decentralization have become possible at every level of the business.
This trend in locating department specific applications along with the computing resources to support them to the department level is a significant change to the business culture. Not only do the departments who benefit from those applications take ownership over the operation of those computing systems, programming and development resources will be become part of the department structure as well.
For example, if the HR department has a suite of applications that are used to tracking payroll, benefits, etc., that application will be placed completely under the authority of HR. As such, areas of authority that were formerly the sole responsibility of IT such as systems analysis, development, programming and computer operations will become part of the HR management structure. As a result, each department develops an ability to converse in IT terminologies which results in a higher IT awareness across the business that is healthy for long-term analysis of needs and resources to meet those needs.
This is not to say that new problems and challenges do not come along with the decentralization of IT. Some IT issues must be addressed at a global level because they impact the business as a whole. So there is still need for a CIO and some high level IT controls to which each of the departmentalized systems must be accountable.
Further, the issue of systems integration and finding synergies between systems to maximize the efficiency of systems becomes more difficult when each department operates its own IT operation. If each department owns and operates its own hardware and network, communications across the business are challenged and there is a higher chance that underutilization of systems will be a result. Quality control at the systems administration level is more difficult because systems administrators may be answerable only to the department level more so than to the business in general.
These organizational issues must be resolved at a high level so the transition from a centralized to decentralized way of doing business can be successful. But the rewards of putting computing power at the department level outweigh the risks of failure and justify the effort that will go with such a large change to the corporate culture.
It doesn’t take a lot of research to find out that in this day and age, virtually every business of any real size has developed some form of internet presence. Now, for many businesses, that may mean little more than an online business card that can be used to get the phone number and store location of the business into the mind of the prospective customer. But in this new century, the idea of having a business without a corresponding web page to support it is pretty much out of the question.
But if you look at the two business worlds, the internet business environment and that outside of cyberspace, there are some pretty big differences. While many companies like bookstores or concert ticket promoters have learned to build what might be viewed as parallel universes in which their business operations are just as sophisticated online as outside of cyberspace, other businesses have just not found that balance.
But as the legitimacy of the internet as a valid marketplace and business tool becomes more understood, more and more businesses are learning that cyberspace can become another valuable part of an overall marketing plan that drives business to the store shelves directly from their internet web presence.
So just as that billboard or newspaper coupon program are just as much part of the businesses corporate plan, that online effort out there in on the corporate web site can become a vital part of the stores operation so much so that the store manager will come to depend on the sales driven by the internet. To that store manager they will look for cyberspace on aisle five as a vital part of their plan for business success.
There is a systematic process that businesses go through to use the internet as a way of capturing web traffic and turning it into store traffic. Make no mistake, there is one principle that should seem evident but is the key to turning cyber visitors to in store shoppers and that is that – Internet Shoppers are People Too!
When a businessperson looks at those strange internet traffic reports that show that they web site has X number of “hits” and that Z number of web browsers went to Y number of web pages, all of that cyberspace mumbo jumbo just means that X number of PEOPLE were on your web site and looked at Y number of products or web page advertisements or services. And those PEOPLE are the same living and breathing humans who will walk in the front door of your store and buy products and services from you.
All we need to do is devise methods to drive those internet shoppers off of their computers and into the businesses retail operations. And more and more you are seeing a businesses trend of internet promotions that are geared to put the customers feet down in the retail space. Some great methods for doing that are…
* Online coupons that can be redeemed only in the retail store.
* Online sales that can be picked up in the store. Many online shoppers might prefer to have the product shipped to them. So you will have to “sweeten the pot” by making shipping charges out of the question or by adding a promotion if the customer picks up his or her purchase in person.
* Contests. Need we say more?
* By promoting special events that will occur in the store. You can stage a major cyberspace promotional campaign for a book signing of an author or celebrity that will occur live at the store itself. The costs of the promotion and having the in store event will be offset by the increased sales.
If your web site routinely uses promotions that result in positive incentives to the customer to come to the store, before long a customer base of loyal consumers will get used to first going online to see what this week’s big deal is and then going to the store to cash in. That kind of ongoing momentum is what makes such a synergy such a success and what makes even customers come to your retail outlet and look for “cyberspace on aisle five.”
Perhaps you have followed the trend in business to create an internet web site for your business that can be used to supplement your marketing efforts. If so, you have joined the momentum to create a corresponding “place” in cyberspace that can be used to reach customers online. The need for such an internet presence is entirely market driven. Internet sales have soared, particularly in certain market segments and more and more, the first place people go to in order to learn about your business is the internet. If they find a well designed web site that is full of features, that works fast and draws them in, that can be a tremendous tool for promoting your business.
When you set up a marketing tool outside of cyberspace, the first concern is how will that new marketing effort get noticed. So we are drawn to places where there is already an active traffic of people who would qualify as our customers. That may mean putting up a billboard where it will be seen by people going to work. That target audience may be the best population to respond to your message. Or if your business appeals to youth, advertising on MTV or on popular radio stations is a natural place to put your marketing money because the traffic is already there.
We have to approach the internet differently. Yes, the traffic is already there but we have to enter the world of cyberspace marketing with a different kind of strategy so we can reach the customers who are traveling certain “internet roads” and make sure those roads lead to our web site.
There is whole a cottage industry that has sprung up around the need for knowledgeable internet marketing gurus. And, yes, it’s a good idea to use their talents to make sure the search engines put your web site in front of the right kind of client or customer. These talented internet geeks can put your business web site into the flow of web surfers so you get your fair share of that traffic.
That said, you don’t have to wait for the internet marketing experts to make your web site more successful. If the business has made the effort to put that web site up, you want to see it start to pay off right away. That is why you should consider some creative ways to drive people to your web site from your traditional markets thus educating your current customers, clients and partners about the site. Ways to do that include…
§ Promote the web site at the retail level. Some creative signage at your retail locations can create some momentum and interest in customers to go see your exciting new web site.
§ Put the link on all correspondence. If you have flyers, a magazine or other current means of communications, your URL should always be listed there. Add your URL to your email signature and on business cards and all other forms of communication so your community of clients, customers and partners get used to associating that web site with you as much as they do your business name.
§ Create excitement. It is easy to operate a business contest from your retail sites that drives people to the web site for clues or to claim their winnings. That kind of momentum can create huge surges of traffic through your web site with the corresponding surge of sales and leads.
The modern customer or client is used to seeing the promotion of a web site included with other forms of promotion and advertising. You are not “assaulting” your customer base with this information. If anything, when your audience sees that the business has burst into the cyberspace world in a big way, they will be thrilled and as likely to respond with, “It’s about time.”.
You know how much you depend on the internet to keep you informed about areas of interest and about businesses you like to patronize. So you can see that not only putting up a good web site but letting people know that it is there and that there are big things there for them to enjoy is doing them a favor as much as it is creating new marketing opportunities for your business.
Recruitment of top notch young talent who can enter your work force and provide that kind of long term growth potential and can only come from a smart and productive staff is always a challenge. One of the big reasons any business works to keep its public image high and to project the concept that they are an employer of choice is to recruit the best and the brightest from the youth ranks.
Young employees bring a lot to a business that can compliment an older work force and make the business much more vital. Younger employees are savvy to the wants and needs of their peers. So instead of trying to guess how to market to the current generation of 18-28 year olds who are the age segment with disposable income, by keeping such employees on staff, you have the inside track to the priorities of the current generation. Further youthful employees are often optimistic and out to change the world. Their sense of mission and belief in the system as a means to make the world a better place results not only in a better morale internally but in business philosophy that shares those values.
The tendency to name the upcoming generations can be a bit trite but it helps in knowing who the target group for recruitment are. And that group of youthful future employees that will be hitting the job market in the next few years has been dubbed “the millennials”. And despite the traumatizing events of world terrorism, war and the decay of the environment, the millennials come to you with that youthful enthusiasm and desire to make a big difference in the world that sets them apart from previous generations.
To lure the brightest minds coming from the nation’s colleges, some rethinking of what we put in front of these young people is in order. They are not leaving academia strictly with the objective of making a lot of money. So to turn the head of youth workers who can make a change for the better in your business…
§ Don’t just make the potential job about money or your recognizable business name. The reputation of the company can be as much a negative as it can be a positive. The millennial recruitee will look past the sign on the building at what the company is really all about.
§ The millennial is more internet savvy and wants to use modern technology to accomplish business goals. It’s in our best interest to facilitate that goal because it will keep us in touch with the marketplace.
§ Corporate culture is an important factor for both recruiting and retaining good employees from this generation. Millenials are looking for a business climate that is creative, able to change when new things become available, highly accessible upper management and responsive.
§ Corporate values mean a lot to the millennial crowd. That means that those high minded values printed on posters and plastered all over the Human Resource department have to actually mean something. By demonstrating that the business lives up to its ethics and values, that will appeal the idealistic side of youthful workers.
§ The values that the business supports must reflect a modern attitude toward diversity and “going green”. If you walk a millennial around the office during his or her interview, they will notice the recycling bins scattered about. They will notice the diversity of culture and race in the employee mix.
§ Be prepared to recruit from various disciplines. Even if you are recruiting for a financial services function or some other specialization, keep your mind open to recruiting students with a focus on liberal arts or teaching. These millennials can be trained to the specific job and they bring a fresh approach to the job description that comes from their college area of focus.
These are things that might take time to change if the corporate culture is behind the times. But it’s worth the effort to start now to attract the kinds of workers that mean long term growth for the company. By doing some serious analysis on how up to the date the business is, you can begin to affect change now so by this time next year, you will be in better shape to court the millennials.
Who else wants to make $100,000 per year - working from home ?
At first glance, it is a bit surprising when you see how much some powerful and prominent businesses in every community bend every effort to court public favor. Almost any community of significant size in the country has a business section in the paper. And subscribers to the local news see their ability to stay in touch with what the strongest and up and coming businesses in town are doing as an important part of their business awareness.
Sometimes it’s good to read the business news in your local paper both for information and with an eye on the question – “Did the business being discussed work to get this article printed about them in the paper?” In some cases, it is blatantly clear that the business went to great lengths to get noticed. Many businesses actually employ public relations and advertising professionals to tailor how they will be viewed in the press and to court public favor by romancing the right kind of press coverage for the business.
There are some solid business reasons behind such aggressive work being done by the business community to have good press coverage. On the surface, it might seem like the intent of managing public approval for a business is just a desire to be a good citizen and so that public opinion is favorable and everybody thinks of that business as a bunch of “good guys”. But the motivations for courting public favor for a business are far more complex and entrepreneurial than that.
* A good reputation means better sales. Public opinion is a funny thing. If a retail company gets a bad reputation in a community, it will have a tremendous impact on their bottom line. But the business that is well regarded at the neighborhood level will be one that sees strong customer loyalty.
* A strong reputation makes for better business dealings. Running a business means entering into dozens of business relationships, making deals and drafting contracts with other businesses in town. If your business is well regarded in the public eye, that will reflect favorably when you need a deal to fall your way at the negotiating table.
* Investors like to see a good public image in a business. Investors like to know that the business they are interested in partnering with will be able to complete its business goals and endure year in and year out. Part of that stability means that the business can live up to its mission statement and its statement of values. When the business the investor is interested in has a strong public image, that reflects that this is a business that conducts itself with integrity, is interested in the public good as well as private profit and is looking for the long-term gain as well as the short-term profitability. These values translate directly into dollars in an investor situation.
* A strong relationship with city and state government is important to long-term business health. Many businesses seek concessions or to enter into a relationship with local government so they can have a clear path to get building permits or conduct other business that impacts the public good. A local or state government can be a businesses best friend or stop your projects in their tracks and keep them stopped. But the thing that pleases the political world is public opinion and the public good. So if your business has a good public profile, that translates to votes for the politically minded people at city hall. And that means influence which can help a business go a long way toward completing its long-range plans.
* A good public image impacts recruitment. When you put an advertisement in the local paper to recruit talent, how you are viewed by those looking for jobs will directly influence if they will respond to your recruitment efforts. Many a business got a bad reputation locally and saw dismal responses to recruitment efforts which can mean a less talented staff and poor performance of the business in general.
These are solid reasons for a business to put some energy and capital into courting a good reputation in town. Whether that means a strong representation on United Way weekend or holding blood drives once a month, the business that has a reputation for reaching out to the community will be a business that prospers.
