August 38, 2008
Well Hello,
I know it’s been a month or so since we last talked. I hope that you have taken time to relax and recharge your intellectual battery.
A few interesting news items in business, advertising and marketing have occurred, so lets get caught up.
1.) Bell Hangs Up On 2,500 Jobs is from July 29th, The Star.com by Tony Wong, Business reporter. “Canada's largest telecommunications company has announced that it would cut the management ranks at its Bell Canada phone subsidiary to provide an annual savings of $300 million in salaries. The $52 billion leveraged buyout of BCE – the largest of its kind in the world… by a group led by the Ontario Teachers' Pension Plan and U.S. private equity buyers. BCE is set to take on $32 billion in debt as a result of the buyout, which means there is pressure to improve cash flow at the telecom, say analysts. However, BCE said yesterday that "non-management front line service" positions would not be affected by the cuts.
MSM: Firing 2500 mid and senior management people will not impact customer service? How can you connect those dots? The new owners need to deal with the debt of the purchase and continue to return value to their shareholders. I get it. This is a slippery slope. In essence they have purchased ( or will purchase, deal is due to be done by Jan 1,09) equipment, land, technology and the past performance record of that company. Inspired corporate performance comes from it’s people. It is managers and leaders of that company that are responsible for providing an atmosphere of creativity and loyalty of the employees department by department in order to deliver customer service and continued profit for the company. What happens to the psyche of the employees of these fired managers? They probably hear footsteps, real or not. Therefore they won’t give of themselves or go that extra mile on behalf of the business interests of that company. Eventually the result is less performance, less customer satisfaction, less profit. Your business is; your people. It is the one distinctive competitive advantage you can control. By the way, I am sorry to see Frank and Gordon leave. I thought that campaign was brilliant. Others may disagree.
2.) “Trust is Hard to Earn and Easy to Lose.” So what does Maple Leaf Foods do now?
Eleven deaths are now being attributed to the listeriosis outbreak from the Maple Leaf Foods plant in Toronto. There are 26 confirmed cases of listeriosis across Canada, while another 29 suspected cases remain under investigation. The number of suspected and confirmed cases are likely to rise.
MSM: This is a tragedy for those poor people affected. We won’t rehash the story that’s not our role. Maple Leaf, formed in 1898 is facing the challenge of it’s corporate life. At this date, it is impossible to tell if the brand will survive. What is next for Maple Leaf? What would you do? Legal will be kept busy for the foreseeable future, but how would you go about the heavy task of rebuilding trust & credibility with customers?
A positive first step in a long parade is now on You Tube. It is a message from President and CEO of Maple Leaf Michael McCain addressing this issue. http://www.youtube.com/watch?v=cgk3o3AJM2U&NR=1 Watch it for yourself and be the judge.
Maple Leaf, true or not, is perceived to have become complacent with process and now is paying the ultimate price.
The lesson; “The Bullet That Gets You Is The One You Never Hear.”
Take the temperature of your business, your competitive advantages and disadvantages.
Review your business philosophy and goals with your people. Look for weaknesses in your systems, image & customer experience. Ask your employees. They might have answers to the questions they’ve never been asked. No one wants to get Maple Leaf-ed.
3.) Special Pricing Offer JUST For Oil Company Executives
So here’s the idea. Oil companies do not have an exclusive right to these “automated price change signs”. Get one.
When oil company executives come into your store or place of business start rolling prices…up,
Then down,
Then hold it for a minute.
Oops, there it goes….up again.
“We just got word, dress socks just went up .50 cents a pair from the time you walked from that department to the cash…no really”.
“Hey, don’t blame me, it is The World Sock-Cartel.
Thanks for letting me into your in-box once again. I promise shorter Minutes in the future.
Stay in a good mood,
Brad
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