Speaks volumes about the mindset at Apple.
What mindset do you instill on their first day? What mindset do you hire for?
As I sit here and absorb the passing of Steve Jobs, a few things strike me.
Many are aware that he co-founded, left, and then returned to lead Apple’s turnaround – transforming it into one of the most valuable businesses in the U.S.
Many are aware of his attention to detail and quality.
For example, Robert Scoble a few weeks ago wrote about Jobs’ attention to things that seemingly didn’t matter, noting that Jobs showed off the metal on the back of iPad2 during the keynote, remarking that “other CEOs didnâ??t care about the back of their products. They cared, instead, about shaving cost from them instead.”
Many are aware that his and Apple’s focus on end to end design as a strategic edge that still escapes many products. Meanwhile others fail to bridge the distance from brochure to website to business card.
Many are aware of his and Apple’s rare ability (particularly for a tech company) to get marketing *so well*, so much so that you know it was discussed during product design.
But that isn’t what caught my attention.
What struck me early on was that his passing touched so many on a personal level, myself included.
Yes, I know a lot of folks in the tech community but none of them knew Steve personally. Still, I feel compelled to call him ‘Steve’ even though we never met.
Many of the folks that I talked with in the first couple of hours were not in the tech industry. Yet they too were touched. Some were surprised at how much his death affected them. Hildy’s comment (above) was but one of many examples.
Remember for a moment that we’re not talking about a guy who came over to help these people move into a new apartment, but the just-barely-former Fortune 50 CEO of a company whose market cap is the size of Exxon/Mobil’s.
Think about it: If the CEO of another Fortune 50 company passed on, would Facebook, Twitter and blogs be flooded with personal tributes? Would “average Joe” be able to reel off that CEO’s three most successful products?
That’s not a slam at them. It’s simply an illustration of one more thing that Steve did so well.
The 24 hours following Apple’s Tuesday keynote turned into “Bag on (Apple CEO) Tim Cook” day.
Despite announcing a phone that’s twice as fast as the previous model, a new voice command system and a new operating system, pundits all over the net were talking about how Cook’s first Apple keynote was such a disappointing performance and how he “just wasn’t Steve”.
None of them could have known that Cook and his VPs took the stage to launch iOS5 and iPhone 4S despite knowing Jobs’ condition.
I can’t imagine how that could have felt, much less how it feels now.
RIP, Steve. You showed us how personal business should be.
“When youâ??re a carpenter making a beautiful chest of drawers, youâ??re not going to use a piece of plywood on the back, even though it faces the wall and nobody will ever see it. Youâ??ll know itâ??s there, so youâ??re going to use a beautiful piece of wood on the back. For you to sleep well at night, the aesthetic, the quality, has to be carried all the way through.” – Steve Jobs
What’s your plywood?
PS: Thanks for raising the bar, Steve. Be well.
Earning, retaining and regaining the trust of your customers has been central to this blog from the beginning.
We talk about a lot of different things that all come down to creating an atmosphere of trust with your clientele. That trust will build a relationship and that relationship, even if impersonal, is what makes business personal to your customers.
A few questions came out of recent conversations on these topics and the best ones were these:
How can an impersonal business relationship truly be personal?
Easy…it starts with trust.
For example, I have a relationship with Apple CEO Steve Jobs. Do we know each other personally, like I do some of my readers? No.
Despite that, I know enough about him from his behavior and the behavior of his company to trust him – at least enough to invest in his company’s products and recommend them to others who trust me.
HisÂ behavior and the behavior of his company over time tell me a few things:
I trust that when he walks on stage to speak about new products:
Some companies build something not to fill a need their customers have expressed,Â or a need that they’ve discovered through vision and research, but because (for example) they compete with Apple in some other way and perhaps feel obligated to compete there too.
Those conversations seem to start with “Wouldn’t it be cool if…” or “Well, if so-and-so did it, so can we…”
When you come to market with a product with that much R&D behind it and no one blinks… somewhere, somehow, your company simply isn’t listening well.
Example, HP just cancelled WebOS and their TouchPad tablet one day after Best Buy publicly complained they’d only managed to sell 25,000 of the 270,000 devices they ordered. While it seems to me that this is a strategic buying error on Best Buy’s part, it isn’t as if HP can’t be held accountable for making a product that can’t compete in the marketplace. No question that the iPad and other devices hurt them badly, but they’ve known about the iPad since at least January 2010.
Some vendors announce new products years before they plan to ship – and in some cases they never deliver them. In the most extreme cases, they pre-sell them and then fail to deliver. Some repeatedly toss out anticipated release dates and never meet any of them. Try recovering from a misstep like that, even if it wasn’t intentional.
How does a vendor recover from a massive loss of trust?
At the risk of being Mr. Obvious, you start recovering by earning back the trust you lost (or earning what you never had).
Start with this: Say what you’ll do, then do what you said. If you stumble, own up to it. Seem too simple? Laugh it off if you like, but as Tom Peters says “There’s not much traffic on the extra mile.”
Some of you will point to Jerry over there and you’ll say “He’ll never come back no matter what we do.”
You might be right, but more Jerrys will leave if you keep acting the way you do now. If you don’t change, how can you expect them to? Even if you don’t get Jerry back, there are others who will recognize your efforts with each bit of trust you earn.
Each customer you lose because of something you did to lose the trust of that customer. You delivered late. You didn’t deliver at all. Your quality was poor. You treated them poorly.
These problems can be repaired. Just like trust.
Recently, Borders book stores reported that they were closing their remaining 399 stores, including our local store here in Kalispell, Montana.
The store has about three months, enough time to liquidate their existing stock.
Survival of the fittest demands that some prosper, some get by and some die.Â Borders was not one of the fittest booksellers around, and few businesses have a chance of getting up after taking a one-two punch from Amazon and Apple.
Still, there are takeaways for the rest of us.
When you go to an online store, you KNOW when they’ve just tossed up a store so they can say they have one, kind of like how your mom knows when a local restaurant makes their own apple pie or serves a food service vendor pie.
In one case, it’s a labor of love. In the other, it seems like it’s just there because it has to be.
It’s not unlike Borders’ technology, eCommerce and eBook efforts. Once they got around to it, they served food service pie.
They can’t blame Napster and peer-to-peer sharing. The music business can try, but you don’t see music acts starving. The same can’t be said for their the stuck-in-the-50-60-70s music management houses. Ask a Canadian or European about online music listening from US-based services. You won’t hear many kind words. Inertia and lack of vision killed many of them and took the local music store down with them. Napster was simply the messenger and peer-to-peer the medium. There’s no equivalent in the book business.
They can’t blame their store staff. In the Borders stores I’ve visited, the staff is well-trained and eager to help. Maybe reading fans self-select as Borders job applicants. Regardless of how their stores found their front-line employees, I can’t think of one who wasn’t helpful, knowledgeable etc. I can’t ever remember being tempted to write about them due to bizarre or off-kilter treatment there.
They can’t blame Amazon or Apple.Â Sure, they can point to the Kindle, the iPad, the Amazon and iBook store (and these two behemoth companies) as what killed them, but blame? Nope.Â Amazon and Apple offered a great example, partnering opportunities and millions of potential buyers.
Meanwhile, how many of your friends have a Kobo reader?Â Did you know Borders has an iPhone reader for their Kobo ebooks? Both are food service apple pie. When you’re competing with the likes of Kindle and iPad, you have to be easier, better or cheaper.
They CAN blame C-level management. Certainly Amazon and Apple were a major challenge, but without strategic vision and execution speed, the results were obvious and inevitable. As the Inc. article notes, they had a weak online retail presence and addressed technology change as if it was a chore, not a differentiator.
Management and strategic direction just happens to be your job. How are you addressing those two things?
You may not have to worry about Amazon or Apple, but that doesn’t mean you have nothing to worry about.
Many independent bookstores have failed in the shadow of Barnes and Noble, Borders (and later, Amazon and Apple). But NOT all of them. What makes those stores different? Why are they “immune”? The reality is, they weren’t and still aren’t immune.
The survivors didn’t stare at the door, wondering why more people aren’t randomly deciding to enter their store.Â They did something about it. They transformed their businesses into one that Amazon or the Apple iBook store will never be: A specialty store delivering amazing personalized service while delivering a product few others will “trouble themselves” with, within the bounds of a business plan that is designed to survive an Amazon/Apple book selling world.
Each one of them uses their online presence as a strategic advantage.
Even if you sell tractors, chainsaws and weed whackers, people are going to search online for info about you and your products.Â If your online presence offers them the equivalent of the food service apple pie, their next purchase might be at Chainsaws.Amazon.com.
Does your business leverage technology, or use it only when forced to?
Serve homemade apple pie.
Thursday was the first day of retail, walk-in Verizon iPhone sales in the U.S.
Normally a visit to our VZW store is guaranteed to consume 60-90 min, even here in rural Montana. They’re usually busy, so you sign in on a screen and they call your name in the order you arrive.
If you set your expectations at that 60-90 min, you’re not so annoyed when you finally get to leave.
Fast forward to the end of Thursday. My wife comes home, saying she wants to go get her phone.
I’m thinking “Oh man, its the first day. Its gonna be nuts.” Based on past history, I expect at least 2 hours.
We walk in and they are hammered. Even so, they still have 3-4 people standing around freed up, waiting for wanna-be hipsters.
We get someone right away. We pay, the Verizon guy moves her contacts from her Blackberry to the iPhone 4. The phone activates in 27 seconds and we leave in a total of 10 minutes.
TEN MINUTES. Someone put some logistics work into this rollout.
I’m FLOORED that we got in and out of their store with a phone switch in 10 minutes on the first day of retail sales, especially given that a normal day takes an hour on most occasions.
I talk to someone later and find out that after several hours in line, a guy in Seattle called to say he was still 8 blocks from the store.
10 minutes = Montana fringe benefits.
First the iTunes store.
Now the Mac App Store doubles Evernote’s hourly rate of new user signups.
How many times does the forehead need slapping before it’s obvious that making it easy to buy is what it’s all about?
Make it easy to buy.
Make it easy to buy.
Make it easy to buy.
Profit is an evil word in many circles these days, but I used it anyway.
Are you the innovation leader in your market?
Think back to your last real innovation. Yes, that one.
Remember that product or service that made customers and prospects flock to your office, store, website, trade show booth or reseller displays?
Once you got to that point, business sure did seem easy, didn’t it?
Think a little farther back. How’d you get there?
Follow the thought process that made you decide to reach out a bit more than normal.
Isn’t it worth being your market’s or even your industry’s thought leader again?
Sure makes those trips to the bank a lot more fun.
I read publications, punditry and blogs focused on a number of different industries.
I hope you do as well. Reading only the trade publications from your industry is dangerous, dangerous, dangerous.
For example, there’s an awesome blog post by Ken Doctor based on comments made by Netflix founder Reed Hastings“.Â Go read it (< 1000 words) and slide back here. The link will open in a new window.
Some of these things might be perceived as applicable only to a “digital business”. As you readÂ “Savor the economics of digital distribution” or “presentation revolution is still to come”, you might wonder how these could impact your blacksmithing business.
I think if you look hard enough – every business probably has a digital (ie: tech-related or internet-enabled) component. Â If yours doesn’t, maybe it should…
I see you out there bouncing up and down in your chair. You disagree.
If you’re a guy whose office is a F-250 full of tools, think a little about estimates, appointment scheduling, material ordering / delivery, drawings, invoices, training and safety.
Enough of that…Let’s discuss Reed’s lessons.
This is all about being strategic. Delegate today, as much as possible. If you get bogged down in the “crisis of the urgent”, you’ll have a very difficult time focusing on the long-term strategic needs. You can’t (shouldn’t, at least) manage your business “paycheck to paycheck”, even if your cash flow currently feels that way.
In All the President’s Men, it was “follow the money“. In your business, it’s “follow the paper”. As you read about the $600 million Netflix currently spends on postage and the labor involved in DVD quality control, consider the costs and labor you incur by shoveling paper around.
Even if you are legally obligated to keep that paper, you can make changes that allow you to handle it ONCE and thereafter refer to digital copies until the paper copies are (possibly) needed. Leroy Schulz suggested I get a ScanSnap several years ago. I finally did. UNREAL. If you deal with a lot of paper, just get one. That’s just one example of a small, but substantial change you can make to unchain yourself from the paper.
The time to be visionary about what your clients need is NOW. It is NOT when they (finally?) realize they need that great idea you had years ago.
That said, you should expect to have to educate your customers and your industry about why that visionary thing is so important. It will take time. Take advantage of the visionary advance while you can and sell it as soon as you can show value for it.
No one asked for an iPhone, yet Apple has sold millions, transforming their financials and leveraging what they’ve learned throughout their product line. Visionary. Again.
Everyone reading this is capable of being that visionary in some aspect of your industry. You just gotta put yourself in the customer’s place.
Strategy, strategy, strategy. Sure, you can fill a lobbyist’s wallet and invent a monopoly, but eventually that advantage will somehow end. It’s tough (though not impossible) to legislate innovation out of business. I’m pretty confident that entrepreneurial innovation is smarter than the collective intelligence of Helena or DC. It’s certainly easy to move faster than any legislature.
If you put the customer and their wants/needs at the center of your strategic thought, you *will* succeed. Good chess players think 2-3-4 moves ahead. Great chess players are thinking a dozen or more ahead. Think about your business that way.
The best way to create what appears to be a monopoly (in the eyes of inferior competitors) is to deliver amazing every single day and improve with every interaction, every hour, every shipment, etc. Chess is no different. The best can play and innovate in their head, during the game.
For many of you, this is about mobile, mobile, mobile. Yes, kinda like “Location, location, location.” Â But it isn’t just about that, so don’t think solely in that way.
How many ways can what you do be delivered? If your business seems immune, think about the overhead of doing business with you. Are you causing more of it? Do you invoice on paper or PDF? Do you mail a check (requiring a trip to the bank) or do you pay some other way? Do you invoice (or pay) manually every month when it could be automated? (ditto for payment) What about ordering? Stock inquiries? Appointment scheduling?
Do easier, faster, smarter. Without cutting quality.
Working in a place with people you want to work with and people who value excellence. It’s easy to slough off as “touchy-feely”, but if you’ve worked in an environment that values quality and improvement, you’ll never again feel comfortable in anything else (well, unless you’re a slacker).
Ken’s comment about Hastings’ response to why Walmart didn’t kill Netflix – and why it shouldn’t kill your business – speaks volumes: “Itâ??s not the stuff, itâ??s what you do with the stuff to please customers. Netflix isnâ??t about simply getting you a movie. Itâ??s the recommendation engine and lists, the customer-pleasing, no-late-fees (remember when this was a huge issue?), its easy-to-use interface and its social/sharing emphasis, among other features that let it distinguish itself in consumersâ?? minds.”
If that quote doesn’t spawn thought processes to revolutionize your industry, then you just aren’t thinking hard enough.
Today’s guest post is from Mark Sigal at O’Reilly, and speaks to your focus in your market.
Pay close attention to the comments about profit vs. market share.
I live in Verizon country. No AT&T here, at least not yet. All you hear and read is about how Android devices are outselling iPhone devices like crazy.
You decide which is more important.
PS: Is it possible to lead a market by copying the current leader?
UPDATE: An alternative opinion or two.