strategy

You are currently browsing articles tagged strategy.

I still wake up on Wednesdays with a little shudder. You see, Wednesdays are (and, I guess, always will be) soundscan days. Back when there was still a record business, you got your report card every Wednesday morning. I remember so well hauling my pale ass out of bed and using the sweet dial up modem to log in to SS. 90% of the time, this was immediately followed by an “ugh.” The numbers were rarely what you wanted them to be (for more on SS’s continued irrelevance, read this).

Numbers indelibly etched in my brain, off to the office I’d go. I’d hit the fax (yes, fax) machine to look for the radio and press reports from the indies, and check my inbox (and by that I mean a little box in which paper reports were inserted) for internal press and radio reports. Ugh. Ugh.

Wednesdays sucked!

And, typically (almost always) with each subsequent week after the initial numbers, Wednesdays sucked exponentially more. You see, 99% of the time, the only week you might have any type of non-ugh reaction over SS numbers and other reports was that first week.

From there the numbers tended to drop precipitously. In fact, it was often considered a win if your SS numbers only halved from week 1 to week 2. Same with the other reports: radio and press (linked, and, in many respects, taking their cues from SS) tended to start with optimism (“So and so from such and such magazine/newspaper/radio station really likes the record, and promises to listen!!!”), and got increasingly depressing (”So and so says they’re on deadline/add week, but they’re going to try to listen;” “So and so doesn’t really dig it/feel the heat/will give it a review instead of a feature/will try it on the specialty show, but won’t add yet”).

Here’s roughly what the report card looked like:

What my scrawl is saying is that in week 1 if your SS number was 1000, by week 2 you’d often decrease that number by 75% (so, from 1k down to 250); the press and radio interest would decrease by half. Week 3 would continue apace with your SS numbers being a tenth (in this case, 100) of the first week, while radio and press interest was 25% of what it had been in week one. This is probably a little dramatic in order to make a point, but it’s not that dramatic, and this is, sadly, often exactly what it looked/looks like).

Can you imagine how hard it became to do this week after week? Don’t get me wrong, I (and many more others) had weeks where the SS numbers went up, press went crazy, radio added the song, etc. But, for every one of these, there were literally dozens where it went the way I described above.

Just from a psychological standpoint, it caused a ton of psychic torment; rather than being excited and finding ways to create energy and positivity about a project, you were left sugar coating: “The numbers weren’t that bad;” “Hey, we laid a foundation for the next record.”

This type of laying it on thick was particularly important in terms of artist relations. You had to present things in some sort of positive light to artists or they’d lose their minds; they’d just spent many moons and much blood, sweat, and tears creating a piece of art, and entrusted it to you, and to tell them that the general response to their work was, “meh” was simply cruel. (In hindsight, it was equally cruel to sugar coat, but I wasn’t as evolved as I am now (hah!)).

In any case, as the negativity began to become almost endemic, the process became surreal: what were we doing? What is real?

Happily, we have a new report card, and it’s sort of the inverse of the above.

Below is a quick (I know, given the looks of it, it’s hard to believe that I didn’t labor over it; I have a gift) list of some of what I feel are the more important elements that should be on your new report card.

[The legend to my map: email addresses; twitter followers; Facebook fans; Google Analytics (you should look at visitors, time on site, bounce rate, etc. Also, you should be looking at Google Alerts); downloads; subscriptions (i.e. people subscribing to some offering, ala Kristin Hersh's Strange Angels). The calculation is just an example. Here, I've got week 1 as "X," and the subsequent weeks' numbers increasing by 20, 30 and 40% of X. So, if week one, you have 100 email subscribers, by week 2 you want 120, and so forth. This is arbitrary. You should set whatever goals are difficult but attainable, and you should adjust as the weeks go by.]

Couple of things to note: 1. You can do this daily. 2. You should measure what I’ve suggested, but you should also have your own things you’re measuring; I’m sure I’ve left off some obvious things (one thing I’d love to be able to measure is how effectively your music is being shared, I know Topspin is making some great strides with this; another is gig attendees/number of gigs played - you need to measure this!).

The big distinction, however, between the old skool report card and the new skool report card is the shift from pessimism to optimism it represents.

Where the old skool report axiomatically led to depression due to the inexorable decline in numbers (SS, reviews, spins), the new skool report axiomatically leads to hope (and thus energy): if you haven’t increased - even by a teeny bit - your email subscribers, etc., something is wrong.

The good news now is that once you realize that something is wrong you can take strides to fix it.

Not getting enough email subscribers? Do you have an email-for-content widget rocking on your site; have you done what you need in terms of SEO to make sure people know you have a site; are you leveraging Twitter or FB to go to where people already are congregating and giving them a decent value proposition to go to your site; etc.

You know what your “remedy” was for bad ss numbers? Spend more co-op dollars. Fuck. Bad radio numbers? Payola. Double Fuck. Bad press? Cry. Sigh.

Again, the real beauty of this new type of report card is that it should be exciting and encouraging. You can see incremental progress, and, most importantly, you (band, manager) are in control.

This is vastly different than placing your hopes/destiny in the hands of a sales rep, publicist, promo person, label.

You note that nowhere on this new report card is a category for radio play or press reviews. You know why? They don’t matter. Yes, a teeny bit of an exaggeration, but even if they might matter a bit (and, really, only for artists who are already established) - you largely can’t control them. Please focus on what you can control. I did, by the way put Google Alerts as a measurement; think of this as your press report, and when you see that someone blogged about your work (via Google Alerts), respond/comment, etc. Remember, markets are conversations/relationships.

In a comment to my earlier post about The Leveling I was gently criticized for not supplying specific enough instruction in my writing. Well, as much as I agree with Mr. Godin’s statement about not drawing maps, I guess this is an attempt at something resembling a map.

Map:
What you have to do is figure out what you need to measure (I’ve tried to give you some ideas). This should lead to an overall strategy (i.e. big picture goals), and this should lead to action plans (i.e. small, daily steps that help you hit those goals).

Don’t try to go from 0 email subscribers to 1000 in a week, and then deem it a failure when/if you don’t hit that. Try to go from 0 to 25 in a week. Before you can get any, you have to do some work (as above, email-for-content widget, SEO, etc. - these are elements of an action plan that lead to success at a strategy of getting more email subscribers).

Measure your progress weekly. Use a google sheet that can be updated each week. Have a band meeting and look at the numbers. Assess what’s working, and what’s not. Where things are working, there is energy; do more. Where things aren’t (no addition of FB fans, etc.), figure out what actions you can take to change it.

Do this for three months, you’ll be shocked by the results.

Tags: , ,

John Gruber is probably my favorite blogger; he’s smart, articulate, direct, insightful, and funny.

His ostensible focus is Mac commentary, but there are frequent forays into UI, design, and even business strategy.

He recently posted the following. I added the red underlines.

As I read this post, my teeth clinched, thinking of all the stoopid arguments I’ve gotten into with people who insisted that whatever project I was working on had to render in Internet Explorer (jackasses), I realized that - as recently as yesterday, and pretty much for the past two years - I’ve been trying to get people to stop worrying about 800 pound gorillas with respect to the music industry.

Yesterday, I gave a brief speech to some potential incoming freshman who are interested in music business. I, naturally, said that, but for some infinitesimal number of people in the music business, the majors are irrelevant. (I was later informed that a parent of one of said prospective students is a muckety-muck at one of the majors - so it goes.)

I’ve been preaching this same sermon for quite some time now. The majors are the 800 pound gorillas for 99.999% of people in the music business. The problem with this is that they create distraction, false expectations/hopes, and cause people to generate “strategy” that is predicated on a logical fallacy. The artist thinks, “Artists get signed to major labels. I’m an artist. Therefore I will get signed to a major label.”

The artist ends up engaging in a bunch of random acts of improvement because they think - based on their logical fallacy predicated on the 800 pound gorilla - that their actions will lead them to their manifest destiny.

Of course, this doesn’t happen. The artist then determines that her music just isn’t good enough. This may or may not be true; the music was never the issue. The issue was that the 800 pound gorilla led them on a quixotic progression of meaningless acts in search of something that isn’t there.

Had they removed the gorilla from their minds and instead focused on developing a plan that would allow them to monetize their passions and create art on their own terms (over the long term), they might (sure as heck are no guarantees) have been able to attain that goal. Certainly, their odds would have been better.

Here’s the thing. It’s not just the majors who are 800 pound gorillas in the minds of people in the music business. Nope. It’s radio (any format above non-com AAA), it’s print media, it’s myspace. These are all 800 pound gorillas that really have no bearing on your success as an artist.

To be clear, radio, print media, and myspace are not inherently bad (well, they sort of are…or at least inherently lame, and that’s bad), and they can (conceivably) have a place in an artist’s career. However, their places are subservient to other things.

What things? Things like creating real emotional connections with your constituents in a face-to-face (non virtual) manner and then leveraging the tech to accelerate this (see “The Straddle” related posts).

Things like viewing records as a tool set; a set of social objects that your constituents can use to develop and spread the Tribe.

Anyway, leave it to Mr. Gruber to perfectly and succinctly articulate what I’ve been wrestling with for quite some time now. As he would say, “Jiminy.”

Tags: , , , ,

It’s always funny when non-business publications decide to analyze successful companies. Not because these non-business publications are (always) wrong in their analysis, but rather because they believe that no one else has come to these realizations before.

Case in point: Wired has decided it would be timely to inform its readers about Southwest Airlines’ Seven Secrets for Success.

Not a terrible idea, and the Seven Secrets they list aren’t wrong, it’s just that people have been writing about Southwest’s success for…oh…about the last twenty years or so.

It’s so bad, in fact, that I have a Southwest moratorium in the business classes I teach. I feel it’s frankly irresponsible, and just sort of lame, for me to talk about SW at this point. There literally is no intro to business or management text which doesn’t use SW as a case study. (By the way, a similar moratorium is soon to be imposed on Apple).

Again, Wired isn’t wrong, it’s just so oddly out of time that it caught my attention.

Also, here’s another quick business lesson. Wired could have greatly shortened their article and simply called it “Southwest Airlines’ One Rule for Success,” and included just this:

Strong Management
The public face of Southwest Airlines for a generation, hard-drinking, chain-smoking, always-leave-’em laughing Herb Kelleher, finally stepped away from the carrier earlier this year. Kelleher’s bonhomie masked the discipline that Southwest has had throughout its history. The airline has always avoided fads and eschewed anything that increased costs or complicated the basic travel proposition. When it has changed—last year it ended its infamous cattle-call boarding process to favor its most frequent fliers and highest-fare customers—it has done so without slowing down the movement of aircraft. Management ranks are lean, but well compensated and, most importantly, productive. I once calculated that the top executives of Southwest generated 10 times more revenue per dollar of compensation than did the C-suite types at some of the network carriers.

As anyone who has studied any business knows, all companies live or die/succeed or fail because of one thing, and one thing only: Good Management.

Perhaps that can be a Wired article twenty years from now, or so.

/snarkiness

Last, I’d say that this type of coverage may very well be the type of thing that signals SW’s demise. Here’s SW’s (LUV) yearly chart:

Certainly better than the other airlines, but, really, not so great. Let’s see how it goes from here. Watch this space.

Tags: , , ,

Bad Behavior has blocked 612 access attempts in the last 7 days.

Close
E-mail It