A Tour de Farce: When The Hero’s Journey Goes Right Off The Rails

One cannot watch Lance Armstrong’s very public fall from grace—he has been stripped of all seven Tour de France victories, and has been barred from competitive cycling for life—without having brought to mind some words from Joyce: “They discovered to their vast discomfiture that their idol had feet of clay, after placing him upon a pedestal.”

There’s no doubt that Armstrong was on a pedestal. Prowess as a cyclist made him an idol to thousands. That number exploded as Armstrong battled and beat testicular cancer. These were the legions that supported the Livestrong Foundation, which provides support to people with cancer. Now that Armstrong has been found to be guilty of doping, many fans and supporters feel cheated. Livestrong donors have asked for their money back. Legendary cycling commentator Phil Liggett says he feels like a fool for having defended Armstrong so vigorously, for so long.

Armstrong’s sponsors have all dropped him. Nike, Trek Bicycles, Anheuser-Busch, 24 Hour Fitness, Oakley, and Honey Stinger have all severed ties with the racer, although not necessarily with the Livestrong Foundation.

The near-universal repudiation of Armstrong is interesting from a psychological perspective. What’s going on here? Why did people—many of whom have no intention of ever purchasing a bike, much less riding one—identify so strongly with Armstrong? Why are they so hurt by this  news now?

Understanding Your Customers: Archetypal Images

Lance Armstrong was an appealing figure to many because he embodied one of the most powerful archetypal images: the Hero. He is now reviled, and represents a new, equally powerful archetype: the Traitor.

When we talk about archetypal images, we’re referring to a type of persona or character that comes up time and time again through history. As we cycle through the ages, humanity repeats itself. Some people do majestic, awe-inspiring things – great feats that are remembered and celebrated. These people become the heroes. Other people do pretty terrible things, lying and deceiving to achieve their own ends. These people become traitors.

We talk about our heroes.  We talk about our traitors.  We talk about them so much, given time, that the stories we tell are more important than any objective facts may be. The symbolism of the story transcends the substance of it. So many different stories of heroism and achievement get woven together, resulting in one collective image almost everyone can identify with.

These tales are used to educate and guide us: if a person is held up as heroic, we believe they’re admirable, and that we should try to emulate the qualities or characteristics of that individual. If another person is held up as traitorous, we believe they’re a bad guide to making positive life choices. We try to avoid doing what traitors do. Even today, you won’t find lots of young mothers naming their babies Benedict Arnold.

Lance Armstrong very visibly, and abruptly, shifted from being a Hero to being a Traitor. This created a tremendous amount of internal conflict within those individuals who identified with him, trying to emulate his behavior, attitude, and near magical ability to survive cancer.

People who used Armstrong as inspiration to hang in there and keep fighting, no matter what, actually expended energy, effort, and resources to hang in there and keep fighting. They paid a personal cost for their commitments. When they learn that they’ve paid this cost under a fraudulent pretense, the internal conflict created becomes very intense. No one likes feeling duped or betrayed.

Being able to shift Armstrong from the Hero category to the Traitor category resolves some of that internal tension for the consumer. The greater the feeling of betrayal, the more vehement and profound the distancing behavior will be.

Smart brands, including Nike, have acknowledged this tension in issuing their statements about Armstrong.  It’s a way to demonstrate that the brand’s feelings and values are in alignment with those their best customers are experiencing. Lance may have crashed his career, but with smart, strategic understanding of who their customers are on a humanistic level, brands like Nike and Oakley will move on from this incident with no damage done.

October 22, 2012 by

Is Social Media History? The Story of Us, In 140 Characters or Less

“Quickly getting addicted to her Blackberry! Help!”

That brief blast from the past was featured in the Huffington Post’s article, Oldtweets Shows You Twitter Posts From 2006 That You’d NEVER See Today. It’s joined by 19 other tiny tales, each remarkably dated, discussing everything from what a great movie Snakes on a Plane was to pondering how anyone named Barack Hussein Obama could become President of the United States of America.

While the article’s good for a few laughs (some of which, it must be admitted, you’ll have to explain to the younger interns) there’s more value to be found in the questions it raises. Social media’s fast pace and global reach have a tendency to obscure the very real role platforms like Facebook and Twitter have in both recording our collective history and shaping our future.

The Exchange of Ideas

Matt Ridley, author of The Rational Optimist, discusses how humanity is unique in one critical way.  Unlike any other species on the planet, we become more prosperous as we become more populous.  This is just not true for the rest of the animal world.  Too many individuals tends to lead to catastrophic events, like over-consumption of resources that results in massive die offs.  Humanity, however, seems to have sidestepped at least some of these consequences. That’s not to say we live in a perfect world, where no one suffers. However, the rates of suffering are significantly less than one would expect, minus one critical factor.

According to Ridley, the reason humanity thrives is because we’re adept at exchanging ideas. Individuals talk with each other, and through this conversation, each benefits, adapting what they’ve learned to best suit their own circumstances.  The ability to exchange information allows people to specialize and work collaboratively with others who have different specializations to perform feats of creation no one individual could do alone.

What we’re seeing happen now, on social media platforms, is the escalation of the exchange of ideas to a speed never before possible in human history.  We’re also seeing unprecedented feats of creative collaboration being used for everything from simple entertainment to social commentary to sweeping cultural change.

The exchange of ideas shapes everyone involved. Participants in the exchange, the audience to the exchange, and a tertiary level of people who may never even know the initial exchange happened, but find themselves facing a social or cultural environment suddenly different as new ideas become part of the collective understanding of what it means to be a human being on this planet right now.

Social Media and the Role of Branding

As brand managers, we need to be  aware of the fact that these conversations are happening, and what role we take within them. Some brands are the equivalent of thought leaders, steering and shaping the conversations that surround them. Other brands are more passive, reacting to conversations they witness. That’s bad, frankly, but even worse are those organizations that remain almost willfully oblivious to the fact that these exchanges and resulting cultural changes are even happening. When these brands proceed as if the world they’ve always known has remained unchanged, they inevitably find themselves in the middle of social media firestorms.

It takes a certain amount of courage and faith in one’s leadership ability to look at your brand and assess, with objective eyes, how well you’re functioning in the current social media environment. Will your brand be tomorrow’s throwaway “ha-ha, remember when?” joke, or will you be central to the current conversation, participating in and benefiting from the exchange of ideas?

October 11, 2012 by

Putting the Social in Social Media: Focus on What’s Fun

Over 60% of the world’s population is active on one or more forms of social media.  You’ve got to wonder what that’s about.  Why are people so focused on Facebook, so tethered to Twitter?

On one level, this is an easy question to answer. We can talk about the fundamental imperative that drives human beings to communicate with each other. Talking is what people do: communicating with each other allows us to make smarter decisions, enjoy a higher quality of life, and attain goals more efficiently and effectively. The propensity to engage in conversation is one of the defining characteristics of humanity. Social media provides a vehicle where we can talk with more people, at greater distances, at a speed never before imaginable in all of human existence.Given the serious benefits that communication offers, it’s no wonder that social media has become such a phenomenon.

Yet while communication offers serious benefits, not all communication is serious.  In fact, some of the most powerful conversations — those that offer real rewards in terms of establishing and strengthening relationships — are pretty funny.

There’s a reason for this. According to Karyn Buxman, author and former president of the American Association for Therapeutic Humor, humor is a social lubricant. People enjoy laughing (for both social and biomechanical reasons) and seek out opportunities where they can enjoy humor. We’re a savvy species, and have long ago figured this out. From the class clown who cuts up to get attention from his peers to the landscape full of funny billboards, humanity has a history of leveraging laughter to fill social and entrepreneurial needs.

This can work really well on social media. Take, for example, this Twitter exchange between Oreo and AMC Movie Theaters.

It began with a simple musing from the Oreo team, about the time honored tradition of sneaking food into the movie theater. AMC responded, and before you know it, thousands of people were watching the two brands swapping comments. It’s important to consider is the humorous, pseudo-combative framing of the exchange. A bantering exchange between two brands presents both in a good light. The Twitter stream with its air of  friendly competitiveness and obvious awareness of current pop-culture tropes imbues both Oreo and AMC with a sense of identifiable humanity.

Focusing on the fun is a smart move on social media. People are retweeting the exchange and following along in part because they want to see who can be funnier. Who will win the witty exchange? It is a mini-event, the type of moment that makes social media enjoyable for the end user.

Remember too that social media users can gain some measure of social standing by being the first to discover or share a funny post, video, or exchange with their peers. Every person who forwarded these Tweets was feeding the essential human hunger for gossip.

If we think about gossip as the act of gathering together in intimate groups to enjoy the same stories in common with other, it’s easy to see how social media’s ability to filter audiences into select small groups is so appealing. The person who can, with a few quick clicks, determine who gets to see the funny material and who is left out of the laughs is fulfilling, albeit likely unconsciously, the need to dominate, to be in charge, to decide. There can be deep water under even the most shallow boat.

It’ll be interesting to see where the exchange grows.  Perhaps it will grow to an epic size, becoming part of both brand’s legacy. Perhaps a Pro-Oreo group will grow up behind the sneak cookies into the theater idea, while fans of AMC can unite to defend the tradition of stereotypically high priced movie snacks. Perhaps it will all just fade away, destined to be nothing more than a Tweet memory.

No matter what, both brands won by becoming more humanistic and approachable in the eyes of their customers. That’s the secret to relevance on social media.

October 1, 2012 by

Are You Ready For Some Football?

The 2012 Football Season has finally started, bringing joy to the hearts of fans everywhere—at least as long as their teams are doing well.  While there’s lots of action to watch on the gridiron, you’re going to want to pay special attention to social media this season.  The NFL, its teams, and even individual players are proving to be surprisingly adept at using Facebook and Twitter to strengthen the relationship they have with their fan base.

Social Media From The Sidelines

In Customers First we talk about one central concept: the better you understand your customer, the more completely you’ll be able to meet and surpass their expectations. This is the recipe for fanatical brand loyalty.

The NFL hasn’t always demonstrated a concrete understanding of what their fans want the most—witness the most recent frustrating lockouts—but they seem to have gotten a handle on things as far as social media is concerned.  They’re using their Facebook presence to give all of the Monday Morning quarterbacks a platform to share their opinions and be heard, posing to their fans the very same questions that are normally discussed by James Brown, Boomer Esiason, Dan Marino, and the rest of The NFL Today crew during halftime.  A post asking which of five rookie quarterbacks starting this Sunday would be the most successful drew over 2,700 responses. While there’s no doubt that the fans admire the athletes on the field, it seems that the behavior they most identify with and emulate with is that of the commentators.

Adweek has given the NY Giants a glowing review of their social media efforts, and we think you should pay particular attention to the bit at the end, which discusses how the sales of tickets and Giants memorabilia is being integrated successful into the social media content mix. Translating online activity into real world revenue works best when the conversions are not forced, but occur naturally and organically. The Giants present a wide range of content, including images of the locker room before the game, exclusive game photographs and post-game live chats with team personnel.

A comprehensive narrative is built, delivering a powerful emotional dividend of anticipation, excitement, and (in the case of the season opener against the Cowboys) heartbreak. It’s a complete experience. Sales solicitations to watch the game again or purchase tickets for the next game mesh seamlessly into the mix. Putting the customer first—providing the information and emotional experience they’re seeking—strengthens the relationship in such a way that they’re predisposed to do more business with the Giants.

An Effective Social Media Presence

When we talk about individual players having an effective social media presence, we’re really talking about the power of the intersection of two powerful unconscious forces: archetypal images and the cultural narrative.  Sports stars and celebrities attain a quasi-mythical status through media exposure. Some of the commentary surrounding Patriot’s quarterback Tom Brady would lead one to expect that the man could change water into wine in between throwing touchdown passes. This puts them in a unique position where they are both more and less than they actually are.  Some of their actual humanity becomes obscured by celebrity’s glare; at the same time, they become powerful symbols of skill and perseverance. The ups and downs of a professional football career track neatly against some powerful cultural narratives, such as the hero’s journey, in which a pure heart and determination can prevail over even the most unjust fate.

Put it all together, and you get Peyton Manning. After many, many years of loyal service to the Indianapolis Colts, Manning was laid low by a neck injury that sidelined him for a season. His team let him go, and today, the elder Manning is the quarterback for the Denver Broncos. Manning’s Facebook page addresses the situation with humor (there’s a great image of Steeler’s coach Mike Tomlin saying “What do you mean, his neck is fine?”) and language that frames this period in Manning’s career as a new chapter in an exciting narrative.  Fans aren’t just tuning in to see the game: they’re seeing Manning’s return and his triumph over circumstances. What happens when fate deals a good guy a bad hand? No one knows for sure, but they’re using social media to make predictions none the less.

Not everyone can throw a perfect spiral pass. Few people can take a hit from a linebacker and get up again. It’s pretty hard to kick a football forty yards through the uprights. But what we can do, as marketers, is take the lessons the NFL is teaching about the effective use of social media and apply them to our own online conversations. Be prepared for touchdowns!

September 20, 2012 by

The Writing on the Wall: Bic’s Lost Opportunities on Social Media

I love BIC Cristal for Her! The delicate shape and pretty pastel colors make it perfect for writing recipe cards, checks to my psychologist (I’m seeing him for a case of the hysterics), and tracking my monthly cycle. Obviously, I don’t use it for vulgar endeavors like math or filling out a voter application, but BIC Cristal for Her is a lovely little writing utensil all the same. Ask your husband for some extra pocket money so you can buy one today!

As of this morning, there are 56 pages of Amazon reviews for Bic for Her pens. Many of these are hysterically funny, while speaking to the peril of introducing needlessly gendered products. The reviews, many of which were added over the holiday weekend,  are being discussed everywhere, from the more feminist corners of the blogosphere to mainstream business publications.  It’s the type of publicity opportunity brand managers dream about at night. But when you look to social media to see what Bic has to say about the whole brou-ha-ha, you’re going to find a whole lot of nothing.

Putting the Social in Social Media: Joining the Conversation

We’ve reached the point where discussing whether or not Bic ever should have introduced Pens for Her is moot. The pens are here, the public has responded to them with a level of intense fervor one can only find at the intersection of comedy and social commentary. And Bic has a huge opportunity on their hands.

Social  media provides the ideal platform for a brand that fully understands its customer base to capitalize on situations like this. Every time you introduce a new product, you are, in effect, issuing an invitation to dialog. The vast majority of new products—especially in the writing instrument market, which has steadily been losing ground as the world communicates via keyboard—arrive with a whimper, rather than a bang. This type of response is phenomenally rare.

Bic, it appears, couldn’t be bothered to show up to participate in the conversation. The Bicforher Twitter account is a spoof; the #Bicforher hashtag is dominated by people pointing to the Amazon reviews. Go to Bic’s Facebook page and there’s absolutely no sign that one of Bic’s products is in the center of the media spotlight. The most recent mention of the Bic for Her pens is over two weeks old; wall postings that refer to the Amazon reviews have been ignored.

It’s important to understand that social media is a messaging vehicle that is wholly unlike the traditional broadcast media we’ve used to market products for generations. Social media has changed customer expectations about what meaningful brand engagement looks like.

When customers take their time and energy to comment on products and services, they expect the brand to respond, in a timely fashion. And they make decisions about the ongoing nature of their relationship with that given brand based largely upon the nature and tone of that response. If Bic responds with the right emotional tone, satisfying or even surpassing what the consumer expected from the brand, they could turn around what at first glance appears to be a PR disaster into a brand-building opportunity.

Silence is never the answer. Bic needs to address the Bic for Her buzz, and they need to do it soon. Ideally, Bic would have an idea of who their best customers are, and what motivates their purchasing decisions. There’s a reason it’s important to have an in-depth understanding of your customer base. Being able to avoid bone-headed product introductions is a good reason, but as we see in this case, knowing when and how best to respond to public scrutiny is another.  There’s a way out of this mess for Bic. They just have to be able to read the writing on the wall and be willing to leave some messages of their own there for the whole world to read!

September 11, 2012 by

Watching the Horizon: The Power of Predictability in Social Media

All eyes were on the sky last week, watching the approach of Hurricane Issac. The storm moved slowly but steadily toward the Florida coast.  This was a problem for the organizers of the Republican National Convention, hosted this year in Tampa.

It’s never a good idea to minimize the potential impact of a hurricane.  Even smaller storms can do devastating damage. That being said, most people who live in the area have the knowledge and experience to weather the storm safely. Many of the people who attend the Republican National Convention, however, aren’t from Florida. Delegates came from all over the country—and many of them had never been closer to a hurricane than their television set. Ensuring the safety and security of all event attendees is obviously a top priority for RNC organizers.  What should they do?

This is the point when we see the value of an accurate weather forecast coming into play.  You’d better believe that the decision makers in this situation paid close attention to the models meteorologists were presenting. What was the likelihood the storm would turn and track out to sea, harmlessly winding itself out over open water? What was the likelihood that Issac would hit Florida directly? What about New Orleans—was the city once devastated by Katrina in for another direct hit?

Knowing the odds of every projected scenario helped the RNC organizers decide what to do to best protect their convention attendees. There were also important political considerations to take into account. Florida Governor Rick Scott was scheduled to make a major speech on the first day of the convention. He instead cancelled all appearances, to focus his energies on storm response.

Were these the right decisions? After a storm has come and gone, it’s easy to look back and answer that question. Before the storm, it’s a lot tougher to be certain of your decisions in an uncertain environment.  Even the best forecast can not tell us, with 100% precision, where the storm is going to go until it actually hits. The best we can do is anticipate, based on probabilities and past experiences (the RNC had to delay their 2008 convention as well, due to the impact of Hurricane Gustav), and act accordingly.

Social Media & The Perfect Storm

Watching this story play out (and being in Florida, we’re not exactly disinterested observers of hurricanes!) one thing that becomes clear is how dependent decision makers are on the accuracy and reliability of the weather forecast. Should the convention open on time? Should it be held at all? Should everyone who was planning to attend actually show up? All of these decisions were dependent on insights gleaned from examining the weather forecast.

This model, while not absolutely definitive, was considered reliable enough to guide major decisions, costing hundreds of thousands —if not millions— of dollars. The RNC is reacting conservatively, making choices to preserve not only the safety and security of their attendees, but their brand image as well. We’re not political commentators here, but it’s safe to say that neither political party would want to be perceived as partying and having a good time while a natural disaster unfolded, particularly in New Orleans.

Wouldn’t it be nice if we had the ability to forecast social media interactions the same way we track hurricanes? Knowing when not implementing a plan, no matter how much time and resources has been devoted to it, is the right decision for the greater good is a tremendous strategic advantage.  You act differently when you know the storm of public contempt and derision is headed your way.

Had McDonald’s known ahead of time what would have happened when they launched the #mcdstories hashtag last year, they could have sidestepped an embarrassing debacle.  Kenneth Cole would have known better than to use the Egypt uprising as a sales promotion hook. Weather forecasts help ensure safe events in real life. If you’re seeking some measure of security for your brand in the dynamic environment of social media, you need a comparable forecasting tool to gauge public reaction to your content before you post it.  This predictability is essential to find a safe port when storm winds are blowing. That’s the value of putting Customers First.

September 5, 2012 by

Being the Apple of Their Eye

PhotobucketBy now you’ve heard the news that Apple has been recognized as the world’s largest company. We can’t say we’re surprised. We’ve been fans of Apple for years. Our enthusiasm isn’t tech-based (although we love our iGadgetry as much as anyone), but is instead borne out of the intensely intimate focus Apple has on understanding and serving their best customers.

The Power of a Cult Brand

Ask any analyst or industry insider what Apple sells, and they’ll rattle off a list of items: the iPhone, the iPad, the Mac. They’re all right, and they’re all wrong. What Apple really sells, and the reason why Steve Jobs was able to steer the organization to such a dominant position, is creative empowerment.

Human beings are complex creatures. We like to think we’re logical, and that all of our decision making comes from a rational, objective place. What Apple, and other dominant organizations like Harley Davidson, Ikea, and Nike—companies we call Cult Brands—realize is that while logical considerations certainly have some weight, they’re hardly the most pressing factors guiding consumer decisions. The feelings and emotional associations consumers have with your brand is the ultimate driver of purchasing behavior and enduring customer loyalty.

In many ways, the consumer views brands the same way they consider their own personal wardrobe. They choose outfits for many reasons: to project a particular image, to attract others, to express their personality—clothing is, ultimately, an expression of identity. They form brand relationships the same way, choosing the organizations they view as the best extension of their selves.

No one stands in line for three days to buy a cell phone because it offers better coverage or has a longer battery life. People stand in line for three days to buy a cell phone because they love the way it makes them feel.

Apple commands fanatical loyalty because they’ve identified and found a way to represent what many, many people consider an integral part of their very best self. This best self is creative, focused on appreciating beauty in many forms. This best self is social, centered on connecting with friends. This best self is generous, sharing everything from personally penned profound thoughts to funny pictures snapped on vacation. Unconsciously or consciously, most of Apple’s customers believe that they are already creative, social, and generous. Unconsciously, they believe that owning an Apple product makes them more so.

If you’re going to be a dominant organization, you need to know, intimately and in great detail, who your customer’s best self is. Delving into and defining the qualities they see as most important in themselves (a process we call Brand Modeling) will help you understand the qualities and type of experience they want from you. Apple does this at every touch point, on and off line. That’s not saying they do everything perfectly; there are always bugs to be discovered. But they address the imperfections in a way that their best customer’s best selves recognize and appreciate.

One is left to wonder what’s left for Apple. After you become the biggest brand in the world, what’s left?

August 28, 2012 by

The Social Side of Social Media: Can You Crowdsource Creativity?

We’ve got to hand it to Mountain Dew.  They’re trying so hard to do social media right—especially when it comes to listening to their customer base and soliciting creative insights from the people who actually love their products. If there was a direct relationship between efforts and results, someone in the Mountain Dew PR team would be getting top honors right about now.

But something’s not working quite right.  Mountain Dew was searching for a name for their new green-apple flavored soda. They turned to the masses, and the masses responded—not always a guaranteed thing in this world! Unfortunately, the masses didn’t respond with really brilliant, insightful, sales-generating names for the soon-t0-be-debuted beverage.
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August 15, 2012 by

Playing Chicken With Your Brand: The Need for Authenticity

If we ever needed an illustration of how social media has changed the dynamic of corporate communications, we need look no further than Chick-fil-A.

It’s no secret that the leadership of the quick-service chicken chain is openly hostile towards same-sex marriage; they donate millions of dollars to anti-gay organizations. Dan Cathy, son of the founder, uses what he calls Biblical principles to run the business. The restaurant is not open on Sunday; they operate debt-free.

How does this play out on social media?

Putting the Social in Social Media

We talk a lot here about the need to belong, and why participating in groups is so important to people. Right now, let’s talk about the mechanics of how people get into groups in the first place, and what they do to stay well-positioned in the group, once they’re in.

Groups are formed by affinity; like-minded people gravitate toward each other. One way for the individual to be welcomed into the group is to announce they have the same values and beliefs as the rest of the group. Chick-fil-A does an exceptional job articulating its organizational values to the public. Customers who find these values in alignment with their own will favor Chick-fil-A. Customers who find these values counter to their own obviously will not.

Social media provides the platform where groups form and engage with each other. After Dan Cathy’s statements confirming the organization’s committed negative stand on same-sex marriage, the Jim Henson Company decided it no longer wanted to work with Chick-fil-A. They made their decision public on Facebook.

In response, the next day, Chick-fil-A posted paper signs in their franchises, announcing Jim Henson toys would no longer be available at Chick-fil-A due to a mysterious safety recall.

That’s the type of incredible coincidence the internet just loves. Gossip and speculation flew faster than the speed of light. There are countless articles, blog posts, and social media postings questioning the sincerity of this voluntary recall. Chick-fil-A did not present as credible. The bad impression compounded when it became obvious that someone was manufacturing sock puppet Facebook accounts to defend the brand.

It did not help matters that the Consumer Safety Protection Commission has reported no known safety issues with the puppets.  The CSPC is the governmental agency that usually handles this sort of thing.

It’s hard to be taken seriously as an organization guided by Biblical principals when you look like you’re bearing false witness. This, more than anything, is what may do real, lasting damage to Chick-fil-A’s brand equity. People believe what they believe about equal rights for all: a chicken restaurant is not going to change their mind—no matter how good those Waffle Fries are!

But now an element of doubt has been introduced into the equation. Chick-fil-A’s biggest fans (the people we’d call their Brand Lovers: the most profitable, engaged customers) and those who are favorable toward the brand are faced with uncomfortable questions.

An Alignment of Values

Were they lied to? And if they were, why? The customers who adhere to this brand and its values are not people who would leave over a forthright statement that acknowledged that the chicken restaurant parted ways with the Jim Henson company over political differences.  Lying is bad enough.  Lying for no discernible reason is worse.

Not every Chick-fil-A customer will ask these questions.  But some of them will, and they’ll talk to their family and friends. Brands are built on trust between the customer and the organization. There is a vital and critical sense that the values of the brand are in alignment with those of the the customer.  Right now, Chick-fil-A’s knocked the cart right off the rails. Even if they’re not lying, it looks like they are.

It’s obviously a tumultuous time at the company. Don Perry, VP of Public Relations, recently died. To move forward, especially in the arena of social media, it’s essential that the brand focus on bringing its actions back into alignment with the values their customers know and expect. Honesty is the best policy. And in today’s fast paced social media environment, verifiable honesty is even better.

What do you think? What advice would you give Chick-fil-A as they move forward?

August 8, 2012 by

The Lost Years? Lessons Learned From Microsoft

Kurt Eichenwald, a contributing editor at Vanity Fair, has investigated what he calls Microsoft’s Lost Decade—a period of lackluster performance and diminished profitability. He lays blame squarely at the feet of a cannibalistic corporate culture.  The story is getting lots of attention, particularly as it relates to the controversial management practice of “stack ranking.”

Microsoft’s CEO, Steve Ballmer, went to Forbes to reply.  His response (Lost decade? What lost decade?) is full of enthusiasm for Windows 8, Bing (currently #2 in the search engine marketplace, trailing Google by only 51.2%!) and the Surface, Microsoft’s computer/tablet hybrid designed to showcase the power of Windows 8.

Which one of them is right?

Let’s start by talking about this Lost Decade thing.  To begin with, how do we decide which years are lost? Microsoft hasn’t been knocking anyone’s socks off with their innovation or sales numbers. (Eichenwald is quick to point out that the revenue from the iPhone far exceeds the revenues generated by all Microsoft products combined.) But Ballmer isn’t wrong when he points out that invention and innovation take time, refinement, and resources. Those years aren’t lost, Ballmer argues. They’ve been quietly necessary.

Harley-Davidson isn’t known for being a particularly quiet company, but they’ve had their share of lost years. During the infamous AMF era, the now-iconic company was in a death-spiral. Quality had tanked, customer satisfaction was a thing of the past, and the brand was headed toward oblivion until a group of dedicated individuals took action to save the company from within. It was a hard time for the brand, a time where they were neither innovative or productive. Yet they’ve recovered, and today are the dominant motorcycle manufacturer in the domestic market.

The Vital Role of Culture

It’s important to note that internal cultural changes played a pivotal role in Harley-Davidson’s revitalization. It turns out to be pretty essential that people build products they’re proud of. Understanding the intrinsic motivations of your work force—those unconscious psychological forces that lead your employees to choose your organization as their employer—is an essential step in effecting meaningful organizational change.

And that brings us back to Kurt Eichenwald.  He’s focused on the problems within Microsoft’s internal culture. The mechanism by which employees expect to be recognized and rewarded for their contributions to the brand’s success has been fundamentally broken, he argues, by the stacked ranking system.  It’s not unlike grading on the curve: 10% of your people are star performers, 70% are your average folks, and the bottom 20% aren’t cutting the mustard.  They need remedial education or they need to be replaced.

Rather than creating an atmosphere of collaboration and innovation, this methodology fosters fear, anxiety, and individual competition.  The focus is not on being the top 10%, it’s on avoiding being regarded as part of that bottom 20%.  Where the employee’s attention is focused is where the company will inevitably go.  You can make a ship so safe it sinks.

What does this mean for Microsoft?  The decade past may not be lost, entirely, but dangerous lessons have been learned inside of that corporate culture.  If Microsoft wants the innovation, creativity, and spark that they’ll need to remain relevant, much less competitive, in today’s tech market, changes need to be made.  Understanding and recognizing what motivates people to do their best work for you, their most creative, higher-order thinking, is a good place to start. The shift toward a more humanistic corporate culture is where it begins.  Who knows where it will end?

August 1, 2012 by