strategy

You are currently browsing articles tagged strategy.

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: , , ,

Newer entries »