August 6, 2011

Saturday - RIM Cost Cutting Won’t Cut It

The Battle
Apple is BE DiFFERENT
This is not the first time I have written about Research in Motion (RIM). The links are above.
My views have been consistent: RIM ‘s competitive position is faltering because they have not moved off their original (tired) strategy of selling Smartphones. Flogging Technology. Pushing features. Compare this to Apple’s strategy of launching hundreds of thousands of applications which create unique and interesting experiences for their fans. And Google’s strategy to leverage their platform and functionality for mobile users.

In the beginning when they literally had no competition the pure product play worked for RIM as it did for any innovator in the early adoptive period of a disruptive technology. The Blackberry device sold like hot cakes and RIM became an investor’s delight. However, I have predicted that the winner in this arena will be the supplier that innovates around Experience Creation not products and technology. And I think Apple has the clear advantage (today) over everyone else.

The recent announcement that RIM plans to layoff people as a cost reduction measure tells me they are in SERIOUS TROUBLE . Cost cutting isn’t a strategy. It’s a reaction to a strategy that in fact is NOT WORKING. It is a short term tactic to preserve margins in the face of an eroding market position. It’s meant to placate the investment community. It’s an admission that they cannot solve their financial challenges by successfully competing.

I am not a fan of short term cost cutting. Bad stuff can happen. Customer service can suffer because the wrong costs are removed. External market activity can be given a lower priority than looking internally for efficiency improvements. Customer programs can be curtailed or cut out entirely. Employee training can be suddenly viewed as “discretionary” and substantially reduced.

Valuable employees leave and take with them their experience and expertise which they gladly give to another company (usually a competitor). The remaining employee population starts to worry about their own future; productivity declines.
The Company’s Brand suffers. Their people-cutting actions speak volumes about their lack of humanity to the markets. People leaving start talking on social media about how they have been treated and about other “goings-on” in the company that may not be flattering.“The Cut” can actually exacerbate an ready bad situation.
There is only one viable option for RIM (sorry, but I’ll say it again). They MUST dump their technology-centered strategy. Start innovating around VALUE and EXPERIENCES for their Fans. Time to change the game. The current direction isn’t working.

And PLEASE. They need to get off the copycat approach. They cant effectively copy Apple or Google. They have proved they don’t measure up.
I’m afraid if RIM can’t renew themselves (which I think they can, by the way. They just need a serious intervention) they will fail.
If you’re not DiFFERENT you’re dead, or soon will be. Want proof? Is Nortel still around?

Final point: NO organization can survive with two CEO’s.
Tick.. Tick… Tick… Tick

Cheers,
Roy


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Posted 8.6.11 at 05:20 am by Roy Osing | Permalink | Comments (0)

August 1, 2011

I Like Part 1

GAGA Misguided
Secret Gathering Process
Power Up with Customer Secrets
I have yet to see a single organization conform to BE DiFFERENT Practices in every way, but there are some organizations that are brilliant at some of them. Study these.

Chubb Insurance. Ever hear of an Insurance Company applauded for turning an extremely painful experience (we had a flood in our home that wreaked havok on 30-40% of it which had to be restored) into a delightful one? Probably not. But mine did. Nivian Chan has an amazing habit of ‘saying yes’ to ease our pain while at the same time admirably representing her company and it’s interests. Words to describe my experience with Chubb: hassel-free, humane, caring and understanding. Amazing.

Zappos. Tony Hsieh’s company delivers happiness. Happiness, a key strategic concept. It’s not about the shoes. It’s about surprising and Wowing their fans. A call center that isn’t outsourced because it is seen as loyalty building tool and not a cost to be controlled. Too bad other CEO’s didn’t have Tony’s insight. Check out his book if you want a great read and if you want to learn how to create a culture obsessed about pleasing your customers.

Cactus Club Cafe. I wrote a Blog Article on this organization a while back. Two things strike me about Cactus. Number One: they have a philosophy and culture of saying YES to whatever their guest wants even if it means running out to get an ingredient they need to prepare a meal that isn’t on their menu! Number Two: everyone in the Cafe understands what ‘House of Yes’ means and they explain the concept with passion and conviction. Ever run into a Frontline employee who really doesn’t get the strategy of the company they work for? Happens all the time. Not at the Cactus Club.

More to come in future Blogs. If you have any examples of BE DiFFERENT organizations please pass them along to me for sharing.

Cheers,
Roy


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Posted 8.1.11 at 06:00 am by Roy Osing | Permalink | Comments (0)

December 30, 2010

Serving Customers: The House of YES

Choose Wierd Fans to BE DiFFERENT 
Dead or Alive: How Would You Rate Your Customer Service 
The Customer Charter of Rights

A sign that reads The House of YES sits above the kitchen area of every Cactus Club Restaurant in Canada.

Recently, I asked a Server what it meant to her, and here is what she said:
- their mission is “Every Customer Leaves Happy”
- their culture is to “say YES” to whatever their customer wants;
- if someone wants something that is not on the menu the kitchen will happily make it;
- if the customer’s request involves an ingredient that they don’t have, they will run out and get it. For example a special drink that requires a liquor not in stock. They will go to the Liquor Store and buy it. WOW!
- she is empowered to make whatever decision is needed to “say YES”
- her manager is there to support whatever she does. Management’s role is to make it easier for Servers to Say YES, not to give them orders.

A Servant Leadership Strategy for any organization is tough to achieve. It requires frontline serving behaviors that are supported by Management. Cactus Club has figured it out.
Nice job!

Cheers,
Roy


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Posted 12.30.10 at 05:58 am by Roy Osing | Permalink | Comments (0)

September 9, 2010

MUG Solutions: A Great Case Study for Start-Ups

MUG Solutions of Vancouver, BC has developed an innovative solution to an increasing used drug needle problem in urban centers: a product that prevents biohazard such as used syringes from being stuffed into manholes. The value of this solution: work safety improves (the manhole environment is no longer contaminated with used needles) and manhole maintenance costs goes down (no need to clean in manholes ever again).

Tina Thompson, CEO, describes how she took her ‘Brave Business Idea’ and turned it into reality.

“Having a unique product or concept really does make some things easier, but doesn’t mean you can simply turn on the lights of your business and think everyone will just come to the party. You have to BE DiFFERENTin the market, be responsible to stakeholders, get credibility, and then tell EVERYONE.

Here are some specific Practices I adopted to launch my Company:
> The Guiding Principle Roy Osing gave us was: ‘To make a brilliant business out of a bright idea you have to BE DiFFERENT!’ This was critical in keeping us focused on what we had to do to be successful.
> We took this Principle and created the only statement to express our uniqueness:

We provide the only permanent solution that prevents biohazard contaminants (such as used syringes) and all other debris from entering manholes.

> We required a deep understanding of our customers’ secrets. Worker health and safety is critical to our clients such as Hydro and Communications Companies, but ultimately what expedites their decision making process are economics.The ability to provide a product that keeps EVERYTHING from going into the manholes was translated into the HUGE savings these companies would realize by never having to clean the manholes.
> Being DiFFERENT provides tremendous opportunity for recognition and press. We have an interesting story, with a unique product that solves a very real problem for everyday workers that most people aren’t aware of. We pitched as many media sources as we could and secured significant opportunities to tell our story.
> Essential to getting media attention: the ability to communicate your relevance (the important problem you are solving), your uniqueness (how you are DiFFERENT), and your elevator pitch (your only statement).
> We had to establish our credibility in the community, and there is nothing more effective than having a large well respected company providing a testimonial for your company/product/service. In our case we had the great fortune of working with TELUS and receiving a testimonial from them.
> We received two of the prestigious Stevie Awards for Women in Business 2008: Best New Company of the Year and Canadian Entrepreneur of the Year. We were also a finalist for two other Stevie Awards: Best New Product of the Year and Most Innovative Company of the Year. In addition, the Canadian Society of Safety Engineers awarded us with Outstanding Achievement by a Safety Professional.
> Ultimately, no matter how cool the product is, what matters is the human connection. There is a social issue that exists that results in the need for MUG Solutions and we are always sensitive to that. We meet with all stakeholders from occupational health and safety advocates, to company executives, to those who work at fixing the addiction issues in urban areas. Therefore, as a company we have a responsibility to hire human being lovers and we take that responsibility seriously. Our hiring principles, and our corporate strategy as a whole, focus on people who have a sense of social responsibility.”

Nicely done MUG Solutions and Good Luck!

Cheers, Roy

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Related Blog Articles
BE DiFFERENT Tips for Start-Ups
The only Statement
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Serve Customers Don’t Service Them
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Posted 9.9.10 at 07:59 am by Roy Osing | Permalink | Comments (0)