A Consultant's Chronicles

The Ethical Layoff: Lose the Job But Keep Your 'Face'

In this financial climate jobs have been decimated across almost every industry even those, which were traditionally immune like the law. In some ways comparing a struggling factory worker's job loss to that of a lawyer in a "white shoe" [read; conservative & elite] firm is like comparing "apples to oranges" but at the end of the day, a layoff is a layoff. This brings me to something that impressed me in an article in this past Sunday's New York Times. It was about White & Case a century old Wall Street firm that recently cut 200 lawyers off their payroll, both junior associates & partners alike. These days there's is nothing remarkable about a big company laying off employees. While much of the article was spent discussing whether or not this move represented a paradigm shift for the profession as a whole, what struck me was how they conducted the process. 

Keeping The 'Face"

According to the chairman Hugh Verrier, they could have done one of 3 things:

• they could have done nothing [considered unhealthy for the firm's survival]
• they could have dissembled alleging poor performance
• they could tell the truth; basically they could no longer afford the larger staff

While the first option clearly sounded like a death knell for the firm, there are many companies today that opt for "plan B:" asserting the reason is poor performance or [gasp] some other malfeasance. What's the difference between alleging poor performance/malfeasance & the truth? Aside from the fact that it would be untrue, it therefore also opens them up to legal liability. However doing what White & Case opted for generally puts the company on the hook for more money [especially at the partner level]. What their choice did NOT do was destroy their employees' "face," their professional & personal prestige. Instead White & Case decided to be candid & reveal that as a firm, that they were ill prepared for a financial downturn, a move that tarnishes their brand further.  As a result, their employees "only" had to deal with the layoff & could at least take [cold?] comfort in their ability to market their skills elsewhere with the general expectation of supportive references. A difficult task but done in a cleaner & far more ethical manner. Now if only they could take "ethics" to the bank... 

 

 

 

Fired Because of Social Networking: The Lesson of 'Cisco Fatty'

This morning I read an article about what has to be one of the all time dumb mistakes made by a [new] employee so it was no surprise to me that her actions got her fired. When employees or job-hunters post silly things on the net, it should be clear by now that doing so is at your own peril. Like your personal reputation & your credit score, increasingly today you also have to preserve your online profile [to the extent that you can; sometimes there are things posted about you that are beyond your control].

Cisco Fatty & Her Big Bucks

Let's use the now infamous case of Cisco Fatty as an example. Who? Cisco Fatty is a real person who has a real name [which I have elected not to reveal here] but she got it because after getting hired by Cisco, she sent out the following 'tweet:'

"...Cisco just offered me a job! Now I have to weigh the utility of a fatty paycheck against the daily commute to San Jose and hating the work..." 

That's the kind of dialogue that you have privately with family & friends not something you share with 5000 of your nearest & dearest online or anyone who can Google. Upon reading these very public "pearls of wisdom" someone at Cisco got hold of the hiring manager & in a New York minute Cisco Fatty was kicked to the curb.

The 'Facebook Faux Pas' Meets the 'Tweet' 

Apparently now you can be fired faster using Twitter than if you make a Facebook faux pas, which has gotten more than a few people separated from their jobs as well. An expert on social networking maintains that as we all get increasingly more comfortable with social networking soon this will be a mere blip on the radar screen but I disagree. Quite aside from the fact that no company will look kindly on negative PR no matter the reason, source, or intent, professionally thoughtless "tweets" or Facebook entries reflect something far more significant. They tell the employer that the author lacks loyalty, discretion, &/or judgment. That kind of assessment has nothing to do with comfort with the internet & its tools. To the contrary; the reason why people get "caught in the act" is precisely because these days, the boss is online too.

Separate the Public from the Private

Remember, separate what can be public from what needs to be private [read: unwritten]  & remember the internet axiom: never write [or show] anything online that you wouldn't show to your mother.

Note: This post has been updated in order to correct the pronouns which were incorrect. My apologies for any inconvenience this may have caused.

Old Media, New Medium

Yesterday I watched an interesting discussion about the future of print media in the form of an interview with liberal Christie Hefner, currently at the Center for American Progress but probably best known as the former CEO of Playboy enterprises. She was asked if it was possible to successfully monetize information on the net. While Hefner believes there will always be a strong print component to media, she concedes that it will be narrower because only the strong brands will be able to survive. As a function of brand power, Hefner believes that print media will be able to productively converge with online media. As an example she cites the ability to download segments of newspapers or magazines on a Kindle. She supported her opinion by quoting Google CEO Eric Schmidt who said in a recent conference that absent faith in proven brands, the internet can be likened to a cesspool. I agree but only to a point. I don’t think that’s the whole story.

Don't Forget Those Who Do the Legwork

Hefner's view also converges in some ways with a recent article by syndicated conservative columnist Kathleen Parker who argues for the survival of the old media. Parker is a realist not "an ostrich with her head in the sand" but makes the fair point that much of the information we get online originally comes from the "foot soldiers" of the old media. She isn’t referring to the big household names that we see on TV or even those who get to deliver news from the Middle East or from disasters across the country. Instead Parker is referencing the local [not to mention underpaid] journalists who attend school board meetings & do small time police/court reporting among many other less glamorous assignments. 

Ipods & Cars

Without the old media doing the legwork, there would be no Huffington Post or Digg or Daily Beast. Why? They are mostly dependent upon the labors of the traditional media for their source material. The old media clearly has to update its business model for online delivery but the changes are closer in nature to transitioning from the CD to the Ipod than changing from the horse & buggy to a motor driven car. In the first example, someone still has to make something to be delivered even though the delivery system itself has become more efficient. I think we need to find a business model that blends the very best of these information sources or more simply put, the old media needs a new moneymaking medium.

Marketing Tips For A New Business With A Small Budget

Starting a business or thinking about changing your marketing campaign? Short of funds and wondering how anyone will know your new venture exists?  Fortunately money is no longer a requirement for a successful advertising campaign [although I won't lie...it does help!].  So what can you do that costs little or nothing? Plenty. Instead of spending money it will cost some time & brain muscle.

Intrusive vs. Permission Based Marketing

Essentially, we have moved into a world of permission based marketing. While there are companies still using "old-school" marketing [which forces you to take extra steps to block it out] including things like tv/magazine ads, mail order marketing, cold-calling, and other intrusive techniques, increasingly technology has given us the means to block them all out. The new & better way is with the consumer's permission through interactive modalities like:

• blogging
• social networks
• youtube

Using these techniques, you can get the word out about your business & without spending big bucks.  This post will focus on blogging. If you've found this, chances are excellent that either a. you already have a blog or b. one is in the pipeline. Let me say this about blogging & it comes through hard earned experience. When blogging for business, use your website as the home for your blog.

Using A Free-Standing Platform vs. Your Website

A common error people make [including yours truly] is launching their business blog from somewhere other than their website. In terms of SEO, which simply means getting on p.1 radar of search engine sites this makes your job harder.  Therefore if you can avoid it, do not create your business blog on Google, Typepad or any other free-standing platform [this is particularly painful for me to say because I love Six Apart, the parent company for Typepad].  Blog on a separate platform & the platform gets the hits; blogging from your site brings pagerank & potential business right to your [online] doorstep. So why am I still on Typepad? I'm still here because after 1.5 years, this is where my readers know I exist & I don't want to lose them. If I could do it all over again however, I'd do it from my site. However, Typepad has recently created some new instruments, which I am looking into that may have the net effect of bringing customers to my site in a more direct fashion.  If however, you are writing a personal blog than I definitely recommend either Google orTypepad. The other possibility is to create your website directly on Typepad but that's another post.
Next time: social networks

For more detailed information go to hubspot.com

Got A 'Big Idea'-Maybe Now Is the Time To Launch It

Bay Area TV reviewer Tim Goodman has a favorite saying "everything I know I learned from TV."  While this saying does not hold true for me, the marriage of two pieces of information from different shows are the genesis of this post. The first comes from an interview w/money maven Suzie Orman who believes that we won't completely be out of this economic muck until 2015...that is 2-0-1-5!!!

When Small Concepts Become Big Business

On the other hand, I was watching an interview with former Madison Ave ad man extraordinaire Donny Deutsch [& host of the "Big Idea" currently on hiatus] & he was trying to inject optimism into what otherwise have been mostly grim proceedings when it comes to employment. Deutsch believes that this is the perfect time to "dust off that business idea that so many people have tucked in the back of their minds." The marketplace is full of great examples. My 2 favorites are Post-Its, which was created through a "failed" attempt to create a new glue  & Scrunchies, which for the men online are hair accoutrement products. This was originally patented* by a woman who was broke but wanted a prettier way to create a pony-tail instead of just a rubber band. Her first product was a roaring success & now she has a broad array of product offerings & is raking in millions.

Launching Your Big Idea

Launching a new product takes remarkably little effort if you have thought it through & it's not necessarily expensive. According to Deutsch, probably the two biggest expenditures would come from a. patenting it [a few hundred, maybe even less if done online] & b. manufacturing a prototype.  Creating a prototype can be done for unbelievably small money by outsourcing the job if you are not handy enough to do it yourself.

Creating "Buzz"

OK, so you've protected the idea & scraped together the money to create a prototype, what next?  The next task is to create buzz for your new product & that according to marketing guru Mike Volpe of Hubspot can be done using your time & brain with very little monetary cost. Things you can do to create buzz are: blog about it [including commenting on other people's blogs where appropriate], feature it on "youtube" in an engaging & interesting way, & talk about it on social media sites. Add just a dash of luck, & you ought to be "in production mode" for the masses. So what are you waiting for?

*The product was designed by Phillip Meyers for the Scuncci familiy but patented by Romy Revson

After The Nightmare Called the Geek Squad:Your Options & Theirs

After my horrendous experience with the Geek Squad, I moved on to another place here in the San Francisco Bay Area called Central Computers. While they are by no means as slick as their big box competitor Best Buy [the parent company to Geek Squad] & they don’t sell dishwashers or any other appliances, when it comes to computers they are the "real deal." They offer a full range of computer services so you can buy a new computer, have one made to your specs, have your computer repaired, buy parts for it, & rent a computer if you are visiting town or yours is being repaired.

Half the Cost Of the Geek Squad

Their prices are roughly half of what the Geek Squad charges on average & they offer a personal touch to their service. There are several locations including one in SF & a couple in the south bay. There's also a location in China too if you "happen to be in the neighborhood."

The Geek Squad: 'Been There Done That'

They told me that they spend very little on advertising because the online reviews & word of mouth supply them with a steady stream of customers keeping them very busy. “What a shock!” Of course the fact that CompUSA, Circuit City, & the Good Guys have all vaporized can't exactly hurt.  The key point is that people aren't flocking to Best Buy. Instead when I tell friends my story, they commiserate because they have "been there & done that;" which is also the gist of some comments left on my earlier post.

Slick PR vs. Street PR

The Geek Squad has two choices: it can continue to sit on it's slick PR while being eviscerated by their "street PR" or they can actually take the negative online buzz about them to heart & make some badly needed changes [minus the useless comments offered to their customers when they complain]. Who knows, if they manage to turn their ship around, they won't need to shell out the big bucks for media-based PR. At any rate, in terms of their customer service, where they go from this point forward will say as much [or more] about them than what they have done in the past.

The Best Advertising Money Can Buy

Convenience, efficiency, a good price, & customer service with a personal touch...no wonder why Central Computers barely needs to advertise while the Geek Squad needs the slickest stuff Madison Avenue can crank out. Based on their performance it would seem that the Geek Squad believes in the best advertising money can buy while others believe in the best service at a reasonable price! What's more appealing to most customers? Hmm, let me think....

The Geek Squad: Pay 46% More To Get 100% Less

Wherever you look, you see PR for the Geek Squad [an affiliate of Best Buy]; very effective PR might I add. There’s only one problem, very recently I have learned that the PR is the best the Geek Squad has to offer. After checking it out, it looks like many others have arrived at a similar conclusion.  When it comes to doing the job, to be charitable, they over-promise & under-deliver, a cardinal sin in business. To be specific, they don’t deliver at all.

The Precipitating Event

Recently my laptop was infected by a nasty virus [more on this in another post] which forced me to find someone to de-bug it. I checked around a bit but like so many other people, the Geek Squad’s PR made an impression so I called them. I spoke with a representative who seemed both knowledgeable, sympathetic, & best of all familiar with the problem. So far so good. She gave me 3 repair service options: they could send someone to my home-too expensive; I could bring it to my local Best Buy-it would take too long to repair because their policy is first come first serve; or they could fix it remotely. Aside from the convenience, the best part about this option was that it would be done fast [although the price was $50-100 more than others were charging]. I figured the extra cost was the price for speed & in the end would save me the cost of buying or renting another system. At the time I didn't realize that their prices were simply higher than everyone else's. We arranged for me to call early the next day.

My First & Last Experience With The Geek Squad

I called them the next morning as planned only to learn that they no longer offered the service. Excuse me? As of when? Yesterday…as in the same day I made the arrangement for the service! What was their solution to the problem? An apology; how is an apology going to resolve the issue? Customer service is one of many topics I cover when providing training to companies so her attitude & do-nothing approach to problem solving was hardly a surprise but so frustrating. One of the things I try to emphasize is that while apologies are nice & appreciated, they mean absolutely nothing to the customer if you make no attempt to fix the problem! I tried to suggest a resolution since this seemed to be beyond her skill-set. I asked if she could contact my local Best Buy & given the circumstances, have my system bumped to the front of the line so hopefully it would be repaired today as promised [or as quickly as they could do the job if for example they had to send it somewhere else]. Asserting that she couldn't do that, she said what she could do is call to find out how many people were ahead of me. How that was going to solve the problem was beyond me. In addition, given that I was talking to a representative based in Boston & it was 8:30 in the morning in CA, that wasn't even viable since Best Buy wasn't opened yet. When I asked to talk with the supervisor, she said "the supervisor will tell you the same thing." While I forced her to hunt down the supervisor, we got cut off ending my first & last experience with the Geek Squad.

The Customer Is Always King [Or Queen As The Case May Be]

In an earlier post, I tried to remind managers why "the customer is always king [or queen as in this case]." Basically, customers are your best or worst PR because they talk [let's see, aside from telling "a few friends, here I am telling you]; we live in the age of 24/7 reviews. I paid far closer attention to online  reviews the second time around & discovered another large company comparable to the Geek Squad [when it comes to computers]. In fact much to my amusement, they had a price sheet comparison with the Geek Squad revealing that on average, the Geek Squad charges 46% more than they do on most jobs. Let's see, pay 50% more to get 100% less....what's wrong with that picture??!!

Increasing Sales By Promoting Your Return Policy

There's a well-known axiom in business: "charge what the market will bear." However, in an economy on a downward trajectory when consumers aren't spending & unemployment is the highest it's been in over 15 years, what can a business do to stay alive particularly the automotive industry? Last night I just got a glimpse at one answer. Hyundai is now betting that essentially they can hook you with a "safety-net" policy.

Creative or Creatively Desperate

I was watching '24' [love 'em or hate 'em, Bauer is back!] when one of their new commercials came on with a very novel pitch. They pledge that if you buy one of their new cars & lose your job in the coming year, you can return it. Now I have a hunch there may be some "fine print" attached to that pitch but I like the underlying acknowledgement that the old rules of the game no longer apply. I'm also now told that GM is offering a "two-for-one" policy of sorts. After years [dare I say decades] of "sticking their heads in the sand" [truer for the American automotive industry than it's foreign competitors] they have made a significant shift in their business strategies. It's a lesson every business will have to learn & embrace just to stay alive. Whether is it 'creative' or 'creatively desperate' marketing, it is reflective of our new reality.

So Many Social Networking Sites & So Little Time

This weekend I felt as if I should've written a song called the "Online Business Blues!" Why? Quite aside from maintaining my regular blog & website, I have now taken webinars saying my business needs to be on Twitter & Facebook [in addition to being on LinkedIn-lucky for me I've accomplished something worthwhile in the eyes of my cyber-gurus!]. Now I have no doubt that over the long haul my business would benefit & being an outgoing sort, personally I'd have fun but where on earth does anyone find the time to be everywhere in cyberspace doing all this cyber-chatter?  In my view at least where business is concerned, it quickly gets down to "so many social networking sites & so little time!''

Memo to Sarah Palin: About Those 18 Million Cracks...

Since I have offered Barack Obama some suggestions for starting out in his new gig come January, in the interest of equal time. I'd like to offer a tip to Governor Palin since she clearly has her eye on 2012. Stop campaigning!!!! Yes, you have been "slimed" in the media by the same "no-name" people who supposedly vetted & selected you but at the end of the day, you were John McCain's responsibility. Case closed. As for his so-called aides & their "leave no fingerprints" tactics, get over it. The media keeps saying it has to review its election coverage for gender bias & inequity but don't hold your breathe waiting for it.

Hillary's Mantle

You have chosen to assume the mantle left by Hillary Clinton when she was defeated in June but Clinton pulled close to a tie with Obama, garnered 18 million votes, and gained grudging respect from even her longtime detractors because she did the work. No matter what people thought of her, by the end of the election no one disputed her qualifications or abilities to do the job. Your brand is badly damaged. The media had a part in this but so did you. Repairng it will not be easy so you don't have a day to waste. To borrow from a now oft used line: "I don't know Hillary Clinton, she's no friend of mine but Governor, you are no Hillary Clinton!"

Doing the Work

For starters, you need to re-invent yourself so that once again you are seen as competent. However, this time it won't be just "aw shucks Alaskans" who will be watching. The best thing you can do between now & 2012 is to prove that the pundits were wrong about you. How?  Do the work, learn about the "lower 48" & the world, develop a sense of gravitas while sharpening your already considerable skills as a natural speaker. Otherwise instead of "smashing the glass ceiling" you will be little more than a "crack" that people used to laugh about. Absent these essential changes, instead of carrying the banner for female executives everywhere, you will be viewed as an embarrassment and perpetual SNL fodder.