Author: Paul Wallbank

  • Learning from the past

    Today being Remembrance Day, the anniversary of the First World War’s end, it’s fitting to not just to remember those who fell in that costly war but also learn the lessons from the mistakes that ended up wasting so many lives.

    Undoubtedly the biggest tragedy of the war was the sheer cost in soldiers’ lives which was due to the commanding generals’ refusal to accept the era of the cavalryman was over as the machine gun, supported by heavy artillery and the airplane, became the main battlefield weapon.

    This wilful blindness to technology is even more galling when one considers the machine gun was an invention of the US civil war fifty years earlier and had been extensively used by the European powers in conquering and subduing native populations in their colonies.

    Those commanders such as Haig, Gough, Ludendorff and Kaiser Whilhelm — the “donkeys leading lions” — ignored the technological changes that had changed their industry.

    Worse, they wouldn’t listen; Haig rarely visited the front or spoke to his junior officers and men and the Kaiser was forced to abdicate and live out his days in exile because he ignored the discontent in his own country.

    In times of great change, we need to listen, learn and adapt. As we saw in the 1914-18 war, the costs of not doing so can be great.

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  • The listening game

    Last week’s Qantas A380 problem illustrates the power the Internet has and how businesses can’t ignore what’s being said on the various online channels.

    Thankfully most of us will never have a morning where the world is told we have lost over four hundred of our staff and customers in a fiery accident as Qantas did last week.

    While not a Qantas customer, I had a lot of sympathy and respect for their management and staff who had to deal with conflicting accounts while balancing their obligations to regulators, shareholders and, most importantly, the loved ones of those aboard QF32.

    The initial story that went out on the media was a Reuters’ report that a Qantas A380 had crashed on taking off from Singapore. While Qantas were able to quickly deny that, they found their other assurances that no debris had fallen from the plane were quickly contradicted by online photos of the pieces in a nearby Indonesian town.

    Luckily, Qantas’ communications teams appeared to be listening to these comments so were quickly able to verify their accuracy and amend the company’s position before they were embarrassed.

    Today’s connected consumers armed with camera equipped, Internet enabled smart phones and can post images contradicting or confirming your message or understanding of the situation quickly. Which is exactly what happened in this instance with passengers and witnesses quickly uploading their views of the incident.

    In one respect this is a threat to traditional management where controlling the message is everything, to the modern manager this is a fantastic opportunity to react quickly and positively to changing situations.

    One of my favourite stories comes from the Virgin Blue checking problems in late September where staff, alerted by complaints on Twitter, were able to get water bottles out to thirsty passengers stuck in queues. It didn’t rescue Virgin from the PR battering they took, but it helped a few of their customers and just maybe won a few of them back.

    This isn’t to say the Internet is infallible, far from it — the Internet is mankind’s gift to the ill informed ratbag and the mischevious troll — what you read on Twitter and Facebook needs to be treated with the same suspicion as what you see on Reuters and CNN.

    Even when the information is downright wrong, you at least have an early warning there’s a perception problem in the community which you can quickly work upon. The key is to evaluate and recognise the credible from the silly and then be able to act on the credible while countering the silly stuff.

    One big lesson from both Qantas’ problems last week and Virgin’s in September is how important it is to point all of your communications channels, including call centres to the organisation’s web site where up to date, verified information is available for the public, staff and customers.

    While the net represents great challenges to business owners and managers of all organisations, it’s also a fantastic resource for getting your facts right and reacting to fast moving changes. Make sure you have the tools and the team to deal with the opportunities and threats our connected economy will throw at us.

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  • Core competencies

    Outsourcing is a good idea for most households and organisations. Asking someone else to do a task you’re not particularly good at or interested in makes sense and most of the service industries are based on the desire to get others to do the work you can’s or won’t do.

    Take outsourcing too far and we lose touch. Just like the parents who outsource all their childrens’ upbringing to nannies, managers overdoing this can lose contact with the very reason their business exists.

    Two stories in the last few days illustrate this; Silicon Alley Insider’s story on the dangers of outsourcing social media and an HP contractor’s employment practices in Western Sydney.

    Hewlett Packard’s story is very instructive, like most of their world wide operations they outsource their Australian assembly operations to a contractor who then engages a labour hire company to engage hourly rate casuals to fulfil their orders.

    This gives the big corporation plausible deniability on their employment practices and saves a few dollars on completing orders — it also means a loss of control of their brand and product.

    HPs customers don’t care if poor work was the responsibility of Foxteq, the assembly company, or Weststaff, the labour hire company. They bought a product with an Hewlett Packard sticker and it’s HPs problem.

    Outsourcing makes sense when it isn’t your key competency, but in the case of HP, hardware and support are key competencies. Over the years they’ve outsourced these to the degree they no longer have control of their own product.

    Unfortunately HP aren’t alone as most of the IT industry decided long ago that IT wasn’t their core business; they were “virtual corporations” where management can sit back and count the pennies while brand consultants look after the products name and outsourced  manufacturers, assemblers and couriers can look after the production, support and logistics.

    All this works well for a while but eventually it catches up with the business, as Dell found with the Dell Hell debacle. While Jeff Jarvis articulated it, many of Dell’s former customers had experienced the poor product quality and awful after sales support first hand.

    Twenty years ago Dell could have bought time by engaging in massive advertising campaigns to hide their poor quality offering but today where everyone has a voice they are quickly caught out.

    Silicon Alley Insider nails that problem for the social media PR channels, rightly saying a company’s voice is too valuable to be outsourced. Today our logistics, sales and support are just as an import part of an organisation’s voice as the PR team.

    Outsourcing everything to save pennies is fine for companies that are run simply to deliver privileges to a pampered cadre of overpaid and unaccountable executives, but for most organisations outsourcing has to be done carefully and with the recognition those contractors are as much an ambassador for your brand as anything else you do.

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  • Tools for the New Economy workshop

    Tools for the New Economy workshop

    We’re in a time of great change as technological, demographic and economic forces are reshaping our economies, societies and the way we do business.

    Tools for the New Economy examines the technology and thinking that’s required to grow your organisation and identify opportunity in these interesting times.

    This workshop is customised for your audience and the industry they operate in. We look at cloud computing, collaborative working and social media with real examples of how organisations are using these tools.

    During the workshop participants will learn how the online economy is changing their industry and how their organisations can use online tools to benefit from the changes.

    Participants cover;

    • Opportunities in the new economy
    • The new economic forces
    • Collaboration tools
    • Cloud computing explained
    • Competing with free
    • Understanding social media
    • Being part of online communities
    • Fast response strategies
    • Identifying new opportunities
    • Dealing with threats
    • Fostering an online culture

    Who should attend?
    Tools For The New Economy is designed for managers, supervisors and business owners seeking to identify where opportunities lie in the new economy and the tools available to them.

    Workshop duration
    This workshop can be run as a group or individual training session. For individuals, we recommend the program be structured as three 90 minute sessions. Group courses can be run up to two days. This workshop will be custom designed to your organisation’s needs.

    More details
    Contact us for more details on this workshop and how we can help your business, organisation or community group identify and deal with challenges of our exciting era.

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  • The free trap

    There’s a number of good reasons for offering a free service or product, you could be trying to build a customer base, position yourself in the market, gain experience in a new field or simply want to give something back to your community.

    But in this age of Google and Bing where knowledge is free and skills a cheap commodity how sustainable are the free models of doing business?

    The Cooks Source plagiarism story and Gavin Heaton’s recent post on Why Social Media Consultants Are Broke illustrate the problems many knowledge workers are having in the new economy.

    Gavin quotes Jessica Gottlieb on her Stop Working For Free You Tube clip. With Gavin’s point being that most social media people work for the love of what they do, not for money. Jessica’s views are a splash of cold water in the faces of those who write for at best a few pennies in the hope it will lead to something bigger.

    While both Gavin and Jessica are right, there’s a bigger issue at work — that there’s no market for this work. There may be a need for it, but there is no one prepared to pay for it and there are hundreds, if not thousands, of people prepared to work for nothing.

    The plagiarism carried out by the Cooks Source magazine is a good example of the free trap where Judith Griggs, the editor, not only believes she is doing the right thing stealing someone’s work but that she actually does the writer a favour.

    It’s the idea you’re actually doing a writer a favour by ripping off their work that’s probably irritated most people criticising Judith. It wouldn’t be so bad if Judith did actually do anything to help the writers beyond cutting and pasting their text.

    Sadly Judith isn’t alone in this and once you’re taken advantage of by her and the millions of others with these attitudes, you’ll find the demands for free escalate. All of a sudden you’re travelling around the country, taking support calls and being pestered to do all manner of further free stuff.

    This isn’t the first time we’ve had to deal with a culture of free. Bill Gates dealt with in the same problem in 1976 where Micro-Soft’s Altair computer programs were being copied. His Homebrew Computer Club letter has become a sort of computer industry equivalent of Luther’s 95 thesis.

    Gates’ letter though was written before the Internet where a culture of free has developed, driven often by corporations giving stuff away because capital has been cheap and labour often free. This developed in the dot com boom and has continued every since.

    We’re now seeing the capital dry up and the question is how long the labour can afford giving things away. It may be the US and European recessions prolong that free supply as desperate people seek opportunities.

    As The Joker said in the Dark Knight movie; “if you’re good at something, why give it away for free?” If you’re doing something for free,  identify why and set some goals on what you want that free work to achieve.

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