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    <title>Strategy Speaks: a Peppers and Rogers Blog</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/" />
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    <id>tag:www.peppersandrogersgroup.com,2008-11-14:/blog//2</id>
    <updated>2010-02-02T02:57:59Z</updated>
    <subtitle>More than 15 years ago, Don Peppers and Martha Rogers, Ph.D. put one-to-one business strategy on the map. Since that time, these acclaimed visionaries have been at the forefront of the “next big thing” in business. They’ve guided hundreds of Global 2000 companies to new heights using a customer-focused approach to business. Now, get their latest thoughts, ideas, perspectives – and rants – with “Strategy Speaks.” And they want to hear from you. Be part of the conversation as we search for innovative ways to grow the bottom line while making the world safe for customers.</subtitle>
    <generator uri="http://www.sixapart.com/movabletype/">Movable Type 4.21-en</generator>

<entry>
    <title>The Perils of Treating Different Customers Differently</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2010/02/the-perils-of-treating-differe.html" />
    <id>tag:www.peppersandrogersgroup.com,2010:/blog//2.2304</id>

    <published>2010-02-02T02:48:07Z</published>
    <updated>2010-02-02T02:57:59Z</updated>

    <summary>What we usually advise clients is that they have to have some objective reason they can cite for making any customer-specific offer - a reason that would allow any other customer who met those particular conditions to receive that offer, also.  </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Customer Loyalty" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="customerstrategy" label="customer strategy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="loyalty" label="loyalty" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="mobile" label="mobile" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="retention" label="retention" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>As I write this, I am recovering in my hotel room from an early-morning run several times up and down each of the four different staircases in this hotel, in a foreign city (not going to tell you what city, but it's way far away from the US - virtually opposite side of the world).  Something I noticed about this modern hotel is that the number of steps between floors varies with each stairwell!  While the floors are all level and have no ups or downs in the hallways, the stairwells themselves each have the same number of steps between each of the principal hotel room floors but that number is 21 steps for one of the stairwells, and 22, 23, or 24 steps for the other three (go figure).  I don't know the explanation for this, and truth is I'm not even very interested in it, but when you have to run up and down stairwells in a hotel because it's too early for the fitness center to be open, then you have to occupy your mind somehow.</p>]]>
        <![CDATA[<p>Nevertheless, this got me thinking about today's consulting assignment.  Our firm is meeting later this morning with a large mobile phone carrier regarding their customer retention efforts.  If you know anything about this subject, you know that customer retention can be thought of as both proactive and reactive.  Proactive efforts are those service improvements, process enhancements, and quality initiatives that encourage loyalty by removing many of the causes of defection.  Proactive retention measures could also include a loyalty program of some kind, along with customized service treatments and the like.  </p>

<p>Reactive retention efforts, on the other hand, are those policies and practices aimed at intercepting customer defections - either by convincing people not to leave when they contact the firm to disconnect, or by using analytics to detect the kinds of behaviors that normally precede defection, and then actively intervening with a customer contact or offer.  </p>

<p>It is the reactive retention efforts that I came to wonder about as I was pondering the irregularities in my hotel's stairwells.  The thing is, a good proactive effort is one that arms the customer service agent with a number of different types of offers and communications to deploy for different types of customer situations.  And sometimes the only real difference between one situation and the next is the intensity of a customer's desire to leave, and therefore the "price" required to retain.  What this means is that - theoretically at least - different customers could communicate with each other about the kinds of "win back" offers they each received, and the result would not be economically helpful to the carrier.  On the other hand, not making the "best offer" to a customer at any point in time is clearly flirting with untrustworthy behavior.</p>

<p>What we usually advise clients is that they have to have some objective reason they can cite for making any customer-specific offer - a reason that would allow any other customer who met those particular conditions to receive that offer, also.  But this advice only really applies to the kinds of initial offers that are made to a customer in a reactive retention situation.  What happens, however, when a customer improves his offer simply through negotiation?  When a business customer does this, a contract typically will have a confidentiality clause, so the seller can protect overall pricing with other customers.  But this obviously would be difficult to apply to consumer customers, even if you wanted to.</p>

<p>Reason I'm posting this is to see if anyone out there has a view on how to handle this issue.  What are the best practices, what are the worst cases, what are the issues?  Anyone?<br />
</p>]]>
    </content>
</entry>

<entry>
    <title>Customer Strategist Yucel Ersoz: 4 Low-Hanging Fruit to Pick to Boost Sales in 2010</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2010/01/customer-strategist-yucel-erso.html" />
    <id>tag:www.peppersandrogersgroup.com,2010:/blog//2.2290</id>

    <published>2010-01-14T19:30:38Z</published>
    <updated>2010-01-26T15:54:17Z</updated>

    <summary>As organizations set new priorities for 2010, they must understand how continuing market changes will impact future business in order to keep their momentum going. Enterprises must find ways to balance achieving profitability by containing costs in the short term with delivering on customer needs and extracting the greatest value from a customer in the long term. This will help  them weather the crisis without destroying their fundamental value, which is the value of their customer base. </summary>
    <author>
        <name>Customer Strategist</name>
        <uri>http://www.peppersandrogersgroup.com</uri>
    </author>
    
        <category term="Return on Customer" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="saleseffectiveness" label="sales effectiveness" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="salesstrategy" label="sales strategy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="yucelersoz" label="yucel ersoz" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>As organizations set new priorities for 2010, they must understand how continuing market changes will impact future business in order to keep their momentum going. Enterprises must find ways to balance achieving profitability by containing costs in the short term with delivering on customer needs and extracting the greatest value from a customer in the long term. This will help  them weather the crisis without destroying their fundamental value, which is the value of their customer base. </p>]]>
        <![CDATA[<p>There are four areas companies can easily address to overcome these challenges and help steer themselves toward long-term sustainability. They include:</p>

<p><strong>1. Prepare to serve well-informed customers. </strong>You can no longer lure a customer into buying your product by simply comparing it with the competition's offering. In many cases your customers have already researched the product online and discussed it on social media sites. Customers are looking to make better-informed decisions, and since the recession began, they are spending their money more wisely. Successful sales teams must be armed with tailored customer information and be ready to respond to questions on the fly.</p>

<p><strong>2. Integrate sales and customer retention. </strong>High levels of penetration in some sectors, like mobile phones, mean that there are few consumers who are not already using your products or a competitor's. You can't afford to lose the customers you have gained. Concentrate on the total customer equity in your desired markets. This means selling products and retaining customers should no longer be separate items on a CEO's agenda.</p>

<p><strong>3. Focus on the short term--in a different way.</strong> Many sales organizations live in the moment, focused on closing sales and moving on to the next prospect. In addition, the pressures of meeting the next quarter's numbers push sales teams to sell some customers a product they know isn't suited for them. Companies that can create a trust-based relationship by implementing a customer-focused set of principles, and arming sales reps with accordingly will continue to build value over the long term.</p>

<p><strong>4. Strive to boost sales effectiveness.</strong> Sales effectiveness is not just about selling more with fewer people on the payroll. It is also about managing customers across the customer lifecycle with the goal of building loyalty while focusing on cross-sell and up-sell opportunities that arise during interactions to boost the bottom line. Sales effectiveness is especially important to the firms facing increased competition and declining revenue. It can be achieved if every interaction with the customer is seen by staff to obtain one more precious piece of information about the customer. As the picture gets clearer with each piece of new information, salesforce automation tools will guide the team to hit the targets.</p>

<p>Acting on these four pervasive issues will have far-reaching effects. By taking a customer-centric approach and being well skilled in sales planning, sales teams will not only prepare for 2010, but also for the future. </p>

<p><strong><em>About the author: </strong>Yucel Ersoz is a partner at Peppers & Rogers Group. <em>Contact him at yucel.ersoz@1to1.com</em></p>]]>
    </content>
</entry>

<entry>
    <title>What should newspapers be doing?</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2010/01/what-should-newspapers-be-doin.html" />
    <id>tag:www.peppersandrogersgroup.com,2010:/blog//2.2282</id>

    <published>2010-01-04T16:48:08Z</published>
    <updated>2010-01-04T16:52:59Z</updated>

    <summary>Facebook and Twitter might be perfect vehicles for a church-based newspaper, because members of a church are natural connectors...</summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Social Media" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="church" label="church" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="facebook" label="Facebook" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="media" label="media" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="publishing" label="publishing" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="twitter" label="Twitter" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>Anyone have any ideas for this newspaper publisher?  He runs a state-wide newspaper for a religious denomination, and every two weeks they mail about 16,000 32-page newspapers out to subscribers.  Paid advertising makes up about 10% to 15% of these pages.  They have a modest e-zine as well, and they have all their news on their Web site, too.  Every state has a similar church-denomination newspaper, and he has teamed up with the editors in two other states, with whom he shares news tips and stories.  There is no central newspaper organization for the whole country, however.  A typical story in his newspaper might be one that covers a controversial resignation or organizational dispute occurring in one of the state or national religious organizations, or maybe a report on missionary work, and so forth.  But this newspaper editor's question to me was, what more should he be doing, given the dramatic new technologies available?</p>]]>
        <![CDATA[<p>I told him that social media like Facebook and Twitter might be perfect vehicles for a church-based newspaper, because members of a church are natural connectors; most of them want to reach out to others, share stories, make suggestions, and do good things.  So I suggested he arrange a one-hour tutorial for himself with someone familiar with these services, and that he should begin thinking about how to start conversations, generate feedback, and create more active communities of common interest among his readers, as opposed to simply putting out news.  </p>

<p>But what else should he do?  Anyone have any good ideas?  Know any similar situations?<br />
</p>]]>
    </content>
</entry>

<entry>
    <title>Self-Service vs. Crowd-Service</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/12/self-service-vs-crowd-service.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2271</id>

    <published>2009-12-16T15:18:00Z</published>
    <updated>2009-12-16T15:38:55Z</updated>

    <summary>There is a charitable, giving motive behind the efforts of unpaid customers helping other customers, and I predict it will spread like any other meme, making human beings - over time - more generous and trustable, as a species. </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
    <category term="customerservice" label="customer service" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="socialmedia" label="social media" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>When customers can go online and help themselves, we've always thought of this as the best kind of service there is: self-service.  But social media tools have made it possible for businesses to provide an even better type of customer service: crowd-service.  Companies such as SAP, Lenovo, Verizon, iRobot, and Pitney-Bowes are now using social media tools to enable some of their customers to help other customers.  CustomerThink's <a href="http://www.customerthink.com/mission_team">Bob Thompson</a> coined the term "crowd-service," a particularly descriptive and appealing label, analogous to "crowd sourcing."  (You can download Thompson's white paper "Crowdservice," sponsored by RightNow, at our Web site <a href="http://www.1to1media.com/mt/mt-search.cgi?search=generation+gap&IncludeBlogs=2&limit=20">1to1.com</a>.)  </p>]]>
        <![CDATA[<p>Earlier this year the <a href="http://www.nytimes.com/2009/04/26/business/26unbox.html?scp=1&sq=Justin%20McMurry&st=cse">New York Times </a>published a nice description of how Verizon is using crowd-service to handle its own issues (although they don't use the term "crowd-service").  And about a year before this article appeared, a different reporter published a story in the same paper about <a href="http://www.nytimes.com/2008/03/10/technology/10hp-1.html?scp=2&sq=toppel&st=cse">highly engaged retired employees</a> volunteering to help their former employers, using HP as an example.  My feeling is that we are only just now scratching the surface of enlisting customers, employees, and others to voluntarily help the brands and companies they support personally.  </p>

<p>If you want to learn more about this trend, I came across a terrific <a href="http://blog.parature.com/customerserviceexperience/how-social-media-is-transforming-customer-service-and-the-customer-experience/">recorded webinar</a> of Forrester's Dr. Natalie Petouhoff on the subject, well worth paying attention to and taking notes on.  I did, anyway.  One of the interesting things about crowd-service is that it follows the same kind of <a href="http://www.1to1media.com/weblog/2009/06/power_laws_and_economic_cycles.html">power law</a> distribution of influence as other networks.  Petouhoff points out that, usually, about 90% of customers just read and absorb the information, while only about 10% contribute information.  But at the top of this pyramid, just 1% of customers, the "super users," drive the vast majority of help provided by a crowd-service platform.   </p>

<p>One last thought: It's quite possible that the increasing interconnectedness of people, using social media tools for conversing and collaborating, will transform human society in a very constructive way.  There is a charitable, giving motive behind the efforts of unpaid customers helping other customers, and I predict it will spread like any other meme, making human beings - over time - more generous and trustable, as a species. The more people encounter and render this kind of service online, the faster this meme will spread.  Good on us!<br />
</p>]]>
    </content>
</entry>

<entry>
    <title>Perils of Consensus: Climate-gate, WMDs, and Asset Bubbles</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/12/perils-of-consensus-climate-ga.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2264</id>

    <published>2009-12-07T14:23:00Z</published>
    <updated>2009-12-07T13:57:47Z</updated>

    <summary>The theory behind global warming is not like the theory of relativity, or even the theory of evolution, both of which are well understood, and have been observed, demonstrated and confirmed again and again, in thousands of experiments and research studies.  </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Economic Policy" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="agw" label="AGW" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="climate" label="Climate" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="dissent" label="dissent" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="wmd" label="WMD" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>Computer servers at the Climate Research Unit, based in the UK's University of East Anglia, were recently hacked.  Internal email messages reveal that the scientists who were entrusted by the UN to provide the most objective view of the climate problem were actually engaged in over-hyping the dangers posed by global warming, suppressing research findings which might either cast doubt on the issue or reduce the sense of urgency, trying to discredit dissenting scientists, and even rigging the peer-review process itself, to reduce the influence of some of the more problematic research studies and scientific papers.   </p>]]>
        <![CDATA[<p>As politicians and statesmen soon head off to Copenhagen to renew their governments' political commitments to reduce carbon emissions, we should all remember there are two separate hypotheses driving the movement: first, that the world's climate is warming, and second, that this warming is at least partly caused by man's activities - specifically, by the injection of millions of tons of carbon into the atmosphere each year, largely through the burning of fossil fuels.  These two hypotheses together form the foundation for the theory of man-caused, or anthropogenic, global warming ("AGW").  Both these hypotheses are probably true, but the extent to which they are is not really known.  Our world was in a warming period before the Industrial Age began, for instance, and a lot of the recently observed increases in temperatures might just be natural.  On the other hand, with a system as complex and feedback-driven as the world's climate, big changes might come suddenly, in a kind of phase transition, with little actual advance warning or observable trend.  As a species, we should want all our best scientific brains investigating this danger to better understand it, without fear of reprisal.</p>

<p>These days, nearly every media report on global warming specifies that the science behind it is "universally accepted" and "beyond dispute," but this is not true.  The theory of AGW is not like the theory of relativity, or even the theory of evolution, both of which are well understood, and have been observed, demonstrated and confirmed again and again, in thousands of experiments and research studies.  The climate is an extraordinarily difficult system to understand, even with sophisticated computer models.  Systemic "experiments" that prove or disprove various elements of the AGW theory are nearly impossible to conduct.  Just 30 years ago, in fact, the greatest scientific fear about our climate was that the world was cooling and might soon experience a new ice age.  The Earth has warmed and cooled significantly in the past, way before man's use of fossil fuels, but calculating the magnitude and effects of these past climate changes by analyzing tree rings or taking core samples from ice sheets is not foolproof, nor do we really understand what causes many of these cycles.    </p>

<p>However, if AGW really is true, then only drastic, costly governmental intervention will ensure that carbon emissions can be reduced enough to have any real impact, and many critics point out that even the most draconian government measures proposed to date are simply unlikely to succeed, despite their disastrously high costs.  The funds required to reduce carbon emissions could be used, alternatively, to completely eradicate malaria, or wipe out AIDS, or both.  There may be technological solutions that don't have as high a cost (carbon absorption sinks, nanotechnology, genetically engineered carbon-eating organisms, and so forth).   Moreover, the actual consequences of a warmer world are not universally bad.  Fewer people die from heat than die from cold every year.  A warmer climate mostly means milder winters, rather than hotter summers. Agriculture will become more difficult in some regions but is likely to be much more productive in many more regions.  And the apocalyptic idea that global warming will cause sea levels to rise by as much as 40 feet (see Al Gore's An Inconvenient Truth) was always nonsensical; even the most vocal AGW boosters are now careful to distance themselves from such scare-mongering.  </p>

<p>In short, there is still a great deal more we need to learn about AGW, and if the consequences are as imminent and damaging as many reports say, then we need to learn about it all the more quickly.   It is therefore a gross disservice to humanity for scientists on either side of the AGW investigation to try to rig the debate.  </p>

<p>This "climate-gate" scandal has ignited a firestorm of I-told-you-so protest from the conservative media, including Wall Street Journal editorial writers and Fox News.  Some scientists brand this criticism of the AGW movement from the right side of the political spectrum as non-scientific, and they are right, because most of the criticism is based on politics and economics, not science.  But if AGW necessitates severe government intervention, then we really can't entirely separate the science from the politics.  These more conservative media voices have no special claim to scientific expertise, but they do tend to give greater weight to the serious costs and reduced personal liberties likely to result from most of the solutions proposed by the AGW crowd.  What we need from scientists is the most objective, balanced evaluation of the problem that we can plausibly obtain, and it turns out that this is not what the Climate Research Unit was giving us.  It was building a stronger case than would be justified, based on what turns out to be a false consensus.  </p>

<p>Still, it's not hard to empathize with the climate scientists involved.  After all, if you have a strongly held belief that man's activities are threatening the world's climate, and that if something isn't done soon then we will all suffer severe consequences - well, obviously you will do what you can to make sure this doesn't happen.  And you'll want to make the argument as strong as you can make it, in order to mobilize action.  But these scientists have no more political expertise or authority than the Wall Street Journal has scientific authority.    </p>

<p>When I read media statements that man-made global warming is "beyond dispute" I cringe.   It reminds me of other great examples of global consensus, including even the most recent financial crisis, driven by the universal conviction that housing prices would continue to rise, no matter what.  Or consider the run-up to the invasion of Iraq, when it was agreed by virtually all the Western World's intelligence services that Saddam Hussein was in fact harboring weapons of mass destruction.  This was not a lie being told to the public by intelligence agencies, any more than global warming is a lie being perpetrated on the UN by scientists.  There was a sincere, rational belief, based on a lot of evidence, that Iraq had WMDs.  No one had actually put their hands on one of these WMDs, but none of the intelligence services doubted that Iraq actually had them or would soon have them - not the French, not the British, not the Germans, not even the Russians.   And in view of the consequences involved, the political officials who felt most strongly about the issue bent over backwards to make their case as persuasively as possible in front of the world public.  Who could forget Colin Powell's detailed and damning address to the UN?</p>

<p>Those of you who follow my <a href="http://www.peppersandrogersgroup.com/blog/2009/01/contrarian-thought-global-warm.html">blog posts</a> know that I, personally, am a big skeptic when it comes to AGW, as are many <a href="http://">reputable scientists</a>, but this is not what I'm writing about here.  I think the climate scientists whose emails were stolen do have a point.  There is good evidence that the world's climate is heating up, and that man is at least partly responsible.  However, there is also a lot more room for doubt than most people appreciate - certainly more than most reporters apparently understand.  </p>

<p>Life is complex, and issues like global warming are difficult to analyze, so we need to be tolerant of <a href="http://www.1to1media.com/view.aspx?DocID=30344">dissenting opinions</a>.  Dissent, when properly handled, makes our decisions more intelligent.  We won't get smarter, as a species, if we don't tolerate - indeed welcome - a variety of points of view.  And, in the same way that the East Anglia scientists should welcome dissenting views on their own theories, the anti-AGW crowd also needs to calm down a bit and realize that just because private emails reveal that climate scientists "fight the hard fight," it doesn't necessarily mean that the science behind AGW isn't legitimate.  Colin Powell presented a highly persuasive case for WMD that, it turned out, were never found in Iraq.  But that doesn't mean he wasn't sincere in his belief, and motivated by an urge to do the right thing.  </p>]]>
    </content>
</entry>

<entry>
    <title>The Balmoral Flunks a Customer Service IQ Test</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/11/the-balmoral-flunks-a-customer.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2254</id>

    <published>2009-11-22T06:20:10Z</published>
    <updated>2009-11-22T06:26:34Z</updated>

    <summary>A gift indicates sincerity, and it denotes that the company is taking its customers&apos; feelings seriously.  And that&apos;s most likely why it was omitted from the Balmoral night manager&apos;s note of apology.  </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Customer Service" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>In my <a href="http://www.peppersandrogersgroup.com/blog/2009/11/test-your-customer-service-iq.html#more">previous post</a>, I posed a question with respect to how to handle a customer service problem at a great hotel - the Balmoral, in Edinburgh, Scotland.  What should the night manager do, if anything, on the day after the fire alarm roused guests from their rooms after midnight?  The several folks who commented on this posting all suggested appropriate measures.  The correct solution would be to offer a small gift or rebate - something nominal, nothing very expensive - and to do this in as personal a manner as possible.  </p>]]>
        <![CDATA[<p>The Balmoral's management, however, has obviously never taken customer service as seriously as the readers of this blog.  The morning after the fire alarm went off, I found a typed note of apology slipped under my door.  It was unsigned, headed simply "Dear Guest," and it consisted of an apology for the inconvenience, followed by an explanation that the hotel takes all fire alarm activations seriously in the name of guest safety.  While it sounds reasonable to slip an apology note under guest doors, I found it to be almost insulting.  Why?</p>

<p>First, there was no attempt at all to personalize.  I mean not even the faintest attempt.  In fact, the last sentence of the note wished "those guests departing today" a safe onward journey, and "those guests staying this evening" a pleasant stay at the Balmoral.  Come on, you idiots, your own registration records will show which rooms belong to guests who are checking out and which rooms belong to guests who are staying.  </p>

<p>Second, while this was an apology, there was no acceptance of responsibility whatsoever.  No hint that the fire alarm system might in fact be faulty, and that this was being looked into.  No suggestion that the hotel would even try to prevent this kind of highly disruptive false alarm in the future.  We all knew it was a false alarm.  Some one or something was responsible, but apparently the hotel has no interest in finding the source.  (As a matter of fact, the following afternoon, the fire alarm went off AGAIN, but only very briefly, while I was in the building - so obviously there is some kind of problem that needs fixing.)</p>

<p>Third, there was no benefit or gift offered to the inconvenienced guests.  I don't think every apology for every customer service problem actually requires some kind of compensation, but in this case compensation would clearly have made a big difference, and what's interesting is that all of the commenters on my previous post suggested some kind of gift, perhaps some type of complimentary spa service.  The cost of a compensatory gift doesn't have to be very large - in fact, it could be in the form of a coupon for some future service, so it wouldn't really cost anything at all, but be revenue-generative.  But a gift indicates sincerity, and it denotes that the company is taking its customers' feelings seriously.  And that's most likely why it was omitted from the Balmoral night manager's note of apology.  </p>

<p>As my daughter is a student at Edinburgh University, my wife and I travel to the city once or twice a year.  We'll be staying at a different hotel next time.<br />
</p>]]>
    </content>
</entry>

<entry>
    <title>Test Your Customer Service IQ: What&apos;s the Right Decision?</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/11/test-your-customer-service-iq.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2253</id>

    <published>2009-11-21T14:00:00Z</published>
    <updated>2009-11-21T11:12:58Z</updated>

    <summary>After an inconvenient event like this, what should the manager of a fine hotel do?  What would YOU have done?</summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Customer Service" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>This is a quiz, designed to test your sensitivity to important customer service issues.  </p>

<p>In the 15 years since Martha and I published our first book we have both become increasingly discriminating customers, much less tolerant of incompetent or uncaring service, and more willing to provide feedback, even when it isn't requested of us.  Our careers now involve a great deal of business travel, often international, and so of course some of the services we know a great deal about include hotel service, car service, and air travel.  <br />
</p>]]>
        <![CDATA[<p>As I write this, I am at a classy hotel in Edinburgh, Scotland: the Balmoral, which is part of the "Rocco Forte Collection" of fine hotels.  Last night, however, shortly after midnight, the fire alarm at this hotel went off, and all the guests had to evacuate their rooms.  Sleepy-eyed, and clad in bathrobe and slippers, I traipsed down four flights of stairs to the lobby, to mingle with other bathrobe-clad guests recently awakened, along with an assortment of people in tuxedos and formal gowns, rousted out of the hotel's ballroom, while the fire alarm continued putting out an excruciatingly loud and annoying screech.  </p>

<p>After about 20 minutes, fire department personnel arrived on the scene and a few minutes later the alarm was turned off and we all returned to our rooms.  <br />
So, after an inconvenient event like this, what should the manager of a fine hotel do?  What would YOU have done, if you had been the Balmoral's night manager on this occasion?  I have my own opinion, but before I tell you what the Balmoral did, and what I would have done, I'd love to hear anyone else's ideas...  </p>]]>
    </content>
</entry>

<entry>
    <title>AYFKM? Why the Droid is Just Not Ready for the World Stage</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/11/ayfkm-why-the-droid-is-just-no.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2245</id>

    <published>2009-11-13T12:58:15Z</published>
    <updated>2009-11-13T13:13:25Z</updated>

    <summary>More than five years ago, when I lived in the UK, if I had gone shopping for a new mobile phone at any store, for use on any network, I would have had a hard time finding a phone that did NOT have &quot;triband&quot; capability, meaning that it would work on virtually any phone system in the world, including the antiquated US CDMA One and CDMA2000 systems.  </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Technology" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>It's no secret that mobile phone service in the US isn't as ubiquitous, US phones aren't as stylish, and the whole mobile system just doesn't work as well as in Europe, Asia, and most of the rest of the world (with the possible exception of Africa).  Even our proudest mobile phone technologies often don't live up to the most basic standards of service expected in the ROW.  </p>

<p>Case in point: <a href="http://phones.verizonwireless.com/motorola/droid/#/home">The Droid</a>.  Now here's a beautiful phone just launched by one of the country's most accomplished technology companies, Motorola, using Google's innovative software, and sold for use on the largest US mobile network, Verizon Wireless.   But guess what?  The Droid won't work on non-US networks!  Or, in the sophisticated technical jargon of Verizon Wireless, the Droid is not a "world phone."  Which begs a point: What planet does Verizon Wireless inhabit, anyway?  </p>]]>
        <![CDATA[<p>More than five years ago, when I lived in the UK, if I had gone shopping for a new mobile phone at any store, for use on any network, I would have had a hard time finding a phone that did NOT have "triband" capability, meaning that it would work on virtually any phone system in the world, including the antiquated US CDMA One and CDMA2000 systems.  </p>

<p>But here in the US, half a decade later, we still tout our proudest mobile phone accomplishments to ourselves alone.  How utterly parochial and narrow-minded.  Hey, we're Americans.  We don't need no stinkin' world.  <br />
</p>]]>
    </content>
</entry>

<entry>
    <title>A Tale of Two Corporate Cultures</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/a-tale-of-two-corporate-cultur.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2232</id>

    <published>2009-10-30T09:42:36Z</published>
    <updated>2009-10-30T09:48:40Z</updated>

    <summary>It&apos;s refreshing to see two such interesting and newsworthy firms thinking so clearly about their corporate cultures.</summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Culture" scheme="http://www.sixapart.com/ns/types#category" />
    
        <category term="Customer Strategy" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="culture" label="Culture" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="customerstrategy" label="customer strategy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="facebook" label="Facebook" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="zappos" label="Zappos" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>A recent issue of the Wall Street Journal has a <a href="http://blogs.wsj.com/venturecapital/2009/10/29/for-facebook-and-zappos-two-divergent-views-of-its-employees/?mod=rss_WSJBlog?mod=tech">wonderful article</a> comparing to two different corporate cultures being nurtured by two different Internet companies - Facebook and Zappos.  Facebook's CEO Mark Zuckerberg says his company is nurturing a culture designed to attract entrepreneurs, even though he knows that many of these creative people will leave the firm later.  Zappos' CEO Tony Hsieh says his firm wants a culture of committed, engaged employees - people who buy into Zappos' mission and plan to stay.  </p>]]>
        <![CDATA[<p>Facebook's vision of itself is that of a technology company, while Zappos thinks of itself more in terms of ultra-good customer service.  </p>

<p>Success for either firm, of course, could mean entirely different things.  But there are a lot of recent books and studies on the impact of corporate culture on an organization's success, and one thing they all agree on is that when a firm's employees share a strongly held set of values and beliefs, long-term success is more likely.  You don't have to read any further than <a href="http://www.amazon.com/Built-Last-Successful-Visionary-Companies/dp/0060566108/ref=sr_1_1?ie=UTF8&s=books&qid=1256895717&sr=1-1">Built to Last</a>, or <a href="http://www.amazon.com/Firms-Endearment-World-Class-Companies-Passion/dp/0131873725/ref=sr_1_1?ie=UTF8&s=books&qid=1256888229&sr=1-1">Firms of Endearment</a>, to get this very clear message.   So it's refreshing to see two such interesting and newsworthy firms thinking so clearly about their corporate cultures.  </p>

<p>While Facebook is undoubtedly a highly successful technology firm, and clearly dwarfs Zappos in size and scope at this point in time, my own bet is that Zappos is more likely to be around in some form or other fifty years from now.  <br />
</p>]]>
    </content>
</entry>

<entry>
    <title>CONTRARIAN IDEA: Let&apos;s Legalize Insider Trading</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/contrarian-idea-lets-legalize.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2217</id>

    <published>2009-10-20T18:42:17Z</published>
    <updated>2009-10-20T18:48:28Z</updated>

    <summary>Regulatory enforcement would only be required to ensure that everyone who really is an insider properly registers all their securities trading transactions or accounts - probably including spouses and close associates.  Twitter would take care of the rest!</summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Economic Policy" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="economicpolicy" label="economic policy" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>Billionaire fund manager Raj Rajaratnam and a bevy of other highly placed Wall Streeters have just been arrested on charges of profiting from inside information in their trades of securities over several years.  Under financial regulations, insider trading is prohibited because it gives an unfair advantage to people who have information not available to public investors.  In the days of paper-based financial reports and a news cycle that was measured in hours, if not days, this might have made sense.  But today, news travels at Twitter speed, and the wisdom of the online crowd might itself be a much better policing mechanism than a thousand pages of difficult-to-read legal jargon.</p>]]>
        <![CDATA[<p>At every public company, board members and top executives are automatically classified as "insiders," and are not allowed to buy or sell shares within a few weeks of major financial reports being filed.  In addition, when they do trade in their own company's shares, they have to file a special form with the SEC within a day or two of each trade.  Presumably, this prevents insiders from unfairly profiting personally from information they come into in their fiduciary roles.  </p>

<p>While this sounds very logical, there are all sorts of difficulties in policing this, in practice.  For instance, a senior executive at a publicly held company has to be very careful what he or she says in public, in order not to allow any hint of "inside" financial information to get out in advance of the scheduled financial reports.  These restrictions create a substantial incentive for firms to provide official projections of future earnings or revenues in their SEC filings, in order to try to get as much information into the market as possible.  But this just adds to Wall Street's short-term earnings fixation, pushing many firms into destructive behavior, because these official "expectations" figures can only be disseminated on specific occasions in specific, heavily documented formats.  </p>

<p>Technology could easily do the same job of protecting the public from insider trading, while at the same time making all markets more efficient by disseminating inside information to the public.   All we need to do is require real-time, on-line reporting of the identities and transactions of all identified insiders.  This would disseminate information about company performance much more efficiently to the market, and it would ensure no insider would be able to profit very much, because any substantial profit opportunity would be identified quickly and arbitraged away by a host of other investors following the real-time reports of insider trades. </p>

<p>Regulatory enforcement would only be required to ensure that everyone who really is an insider properly registers all their securities trading transactions or accounts - probably including spouses and close associates.  Twitter would take care of the rest, stock prices would be more efficient, and "gaming the system" in order to outperform or underperform Wall Street expectations would be useless, because public expectations would have already caught up to the non-public reality.<br />
</p>]]>
    </content>
</entry>

<entry>
    <title>No Rockettes at Radio City This Week</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/no-rockettes-at-radio-city-thi.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2202</id>

    <published>2009-10-08T03:28:32Z</published>
    <updated>2009-10-08T11:05:58Z</updated>

    <summary>If I had to put my finger on the central themes dominating most of our sessions, I would say they included the need for more trust and transparency, the hazards of short-termism, and the requirement for more effective employee engagement. </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Business Strategy" scheme="http://www.sixapart.com/ns/types#category" />
    
        <category term="Short-Termism" scheme="http://www.sixapart.com/ns/types#category" />
    
        <category term="Trust" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>My first job out of the Air Force was as an economist for an independent oil company.  We were based in New York City at 50 Rockefeller Plaza, which is the building that backs up onto Radio City Music Hall.  I spent a little over a year in a shared office on the fourteenth floor at 50 Rock, before being promoted and transferred to Houston.  Our office had a great view over the roof of Radio City, and we became a prime destination for lunchtime meetings and get-togethers during spring and summer, because on clear days we could usually spot several of the Rockettes out on the roof, tanning their legs. <span class="mt-enclosure mt-enclosure-image" style="display: inline;"><a href="http://www.peppersandrogersgroup.com/blog/WBF.JPG"><img alt="WBF.JPG" src="http://www.peppersandrogersgroup.com/blog/assets_c/2009/10/WBF-thumb-294x220.jpg" width="294" height="220" class="mt-image-left" style="float: left; margin: 0 20px 20px 0;" /></a></span> </p>

<p>For the last two days I've been sitting inside Radio City, observing and recording my impressions of HSM's <a href="http://news.google.com/news?hl=en&source=hp&q=world+business+forum+2009&um=1&ie=UTF-8&ei=0V7NSsSSJZDT8Qa5sMHyAw&sa=X&oi=news_group&ct=title&resnum=4">World Business Forum</a> as a member of the IBM-sponsored "Bloggers Hub."  Radio City's atmosphere is electric, its setting majestic, and its historical pedigree authenticated by rows of now pointless public phone booths in the washrooms.  But no sunning Rockettes were spotted.  Instead, for the last two days we have been shining the light on business ethics, strategies, corporate culture, innovation, and employment practices.  <br />
</p>]]>
        <![CDATA[<p>If I had to put my finger on the central themes dominating most of our sessions, I would say they included the need for more trust and transparency, the hazards of short-termism, and the requirement for more effective employee engagement.  These happen to be three of the most important issues Martha and I write and blog about.  In fact, our current book is entitled <a href="http://www.rulesandlaws.com/"><em>Rules to Break & Laws to Follow: How Your Business Can Beat the Crisis of <strong>Short-Termism</strong></em></a>, and five of its fourteen chapters are concerned with either trust or employee engagement.  </p>

<p>Of course, the current financial crisis (or any other sudden economic shift) could not have been foreseen, and all those pundits who claim to know what caused it are just spouting hot air.  Explaining an event in retrospect is not the same as predicting it in advance.  If they really could have seen the crisis coming, they would already have made billions.  The simple truth is that our economy is inherently, absolutely, and irrevocably unpredictable.  It is a logical contradiction - a mathematical impossibility - to predict economic cycles with any real accuracy, for the simple reason that if someone were to devise a sure-fire way to predict economic cycles, then this very fact would create arbitrage opportunities that would immediately discount and confound those same predictions.  </p>

<p>That doesn't mean, however, that we shouldn't pay attention to the fuel that fed the fire, in the form of a grandiosely inflated financial services category, and rampant short-term thinking on the part of most publicly held companies, the destructive effects of which were compounded by exorbitant and unustified CEO pay.  It's clear to everyone that the business environment has changed radically in the last year or two.  The recession has robbed banks and businesses of the trust of their customers, and the old industrial management models no longer seem to provide the kind of flexibility and resilience needed for an economic system now operating at Blackberry speed.  </p>

<p>Our speakers this week all keyed in on these problems, from Pat Lencioni and Gary Hamel to Jeffrey Sachs, Bill Conraty, and Bill George.  Their recommendations were all remarkably similar: do the right thing, pay attention to the long term, follow your passion rather than your avarice, be honest with employees, and be transparent with shareholders.  Gosh, makes me wish I had said those things myself.  Oh, wait.  Martha and I did say these things.  Last year, in our <a href="http://www.rulesandlaws.com/">book </a>chronicling these problems (but no, we didn't predict the crisis, either).  <br />
</p>]]>
    </content>
</entry>

<entry>
    <title>WBF, Day Two:  Hamel Promotes Network-Based Management Technology</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/wbf-day-two-hamel-promotes-net.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2199</id>

    <published>2009-10-07T17:54:49Z</published>
    <updated>2009-10-07T18:00:06Z</updated>

    <summary>In order for Hamel&apos;s idea of network-based management decision-making to work at its best, an organization must also be characterized by a unifying and trust-based employee culture - a culture built around everyone&apos;s explicit buy-in to the mission, the why of what is to be done.</summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Business Strategy" scheme="http://www.sixapart.com/ns/types#category" />
    
        <category term="Networks" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>It seemed to me that the message brought to us by the several international business leaders during HSM's "International Insights" segment of the <a href="http://us.hsmglobal.com/contenidos/uswbfhome.html">World Business Forum</a> provided an interesting counter-position to the heavily pessimistic views of both Jeffrey Sachs and David Rubenstein, yesterday afternoon.  The other bloggers and people I talked with all agreed, that it seemed these business people, when they were talking about the future as it looks now, were fairly optimistic about their own prospects for growth.  They each acknowledged the challenging environment, and the fact that margins are still under pressure, and the economy is still sluggish, but they each also felt that the worst was now behind us, and prospects are decent.  Not super, but decent.</p>]]>
        <![CDATA[<p>Dennis Nally, CEO of PricewaterhouseCoopers, gave a talk first to expound on the need to restore lost trust in the financial markets and in the economy in general.  This is, of course, something Martha and I are constantly going on about, and in fact we just published a "Face to Face" piece for our 1to1 Magazine <a href="http://www.1to1media.com/view.aspx?DocID=31840">on this topic</a> a couple of weeks ago.  The other CEOs in the morning, who headed a bank, a mining company, a chip manufacturer, and an oil company, were more or less in unanimous agreement that business was in process of getting better, but that there was still real work to do.</p>

<p>Highlight of the morning, however, was Gary Hamel, who is always an entertaining and informative speaker, and a world-class authority on business strategy.  Hamel's primary point was that our physical and IT capabilities have now evolved to such an extent that our "management technology" needs to be re-invented.  He posed several examples of firms, like WL Gore, that have crafted unique and different ways to handle the conflicts inherent in today's traditional hierarchical organizations, both empowering people to act on their own initiative and holding them accountable to their peers for their success or failure.  There is a direct analogy between the kind of online rating system for reader reviews that you see at Amazon.com and the requirement at Gore, for instance, for employees to rank twenty of their peers from 1 to 20 each year in terms of the value they create.  I think this  "wisdom of crowds" approach is likely to become more and more powerful as our society becomes more accustomed to being connected and networked, 24/7.  </p>

<p>There are a few requirements for such new management models to work, however, that Hamel didn't mention - perhaps he'll talk about them in tomorrow's full-day special session (for select attendees), when he has more time.  But while research clearly shows that harnessing diverse and different perspectives can solve problems and make predictions much more accurately (as Hamel said Best Buy found when they harnessed employee inputs to do a better job of sales forecasting), an important caveat is that the people whose perspectives are being tapped like this must all share a fairly common fundamental perception, which amounts to a common sense of mission or purpose for the organization.  Instrumental preferences (i.e. problem solving ideas) can vary widely - in fact, the more diverse the better - but fundamental premises (i.e. values) must be more closely aligned.  </p>

<p>What this means is that in order for Hamel's idea of network-based management decision-making to work at its best, an organization must also be characterized by a unifying and trust-based employee culture - a culture built around everyone's explicit buy-in to the mission, the <em>why </em>of what is to be done.  Only in this way can <a href="http://www.1to1media.com/view.aspx?DocID=30344">dissent and disagreement</a> be tolerated and resolved into better solutions<br />
</p>]]>
    </content>
</entry>

<entry>
    <title>Hellfire and Brimstone on a Tuesday Afternoon</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/hellfire-and-brimstone-on-a-tu.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2198</id>

    <published>2009-10-07T03:43:16Z</published>
    <updated>2009-10-07T04:02:56Z</updated>

    <summary>Jeffrey Sachs&apos;s talk represented the triumph of left-wing pessimism over the human race&apos;s experience of economic and technological progress.  </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Economic Policy" scheme="http://www.sixapart.com/ns/types#category" />
    
        <category term="Innovation" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>The first afternoon at the World Business Forum, our after-lunch speaker was David Rubenstein, billionaire investor and founder of the Carlyle Group, former Carter advisor and generally very bright guy.  His rapidly delivered speech was like a ticker-tape coming almost too fast to read, fact and stat, fact and stat, stat stat stat stat.  Recession is way worse than most people think. Taxes will increase substantially following recovery.  Government will continue too involved with business for a long time. NYC will no longer be the world's financial capital.  The dollar will cease to be the world's primary reserve currency. On the other hand, he says, a downturn like this creates great investment opportunities, and lots of room for innovation.  His was a rapid, bleak, but fairly balanced presentation.  Sobering, disturbing, worrisome, and factual.</p>

<p>Jeffrey Sachs, on the other hand, gave what can only be described as a disappointingly shallow and politicized analysis of the world's problems in his "Economics for a Crowded Planet" talk.  </p>]]>
        <![CDATA[<p>The problems Sachs pointed to were apocalyptic, insurmountable, and man-made, but apparently immune to any technological fixes.  His talk would have been worthy of Malthus, but unfortunately it was not worthy of the 21st Century.  To justify his position, Sachs even said something like "because it's my job to know the arithmetic" - which could almost be Malthus talking directly from the grave.  This talk represented the triumph of left-wing pessimism over the human race's experience of economic and technological progress.   His starting premise was that we now use more resources per person than ever before in history, and that this cannot continue.  Oh, really? How many acres of land do you need for your family's farm, Jeffrey?  I can pretty much guarantee that your great-great-grandfather's family needed <em>way </em>more of it than you do, per person.  </p>

<p>Yes, we need to be good stewards of our resources, but if history is any guide at all, the more people are available to solve problems and innovate, the faster these intractable environmental problems will be solved.  Start by remembering that the pace of progress has actually accelerated with population growth.  The average human being subsisted on the modern equivalent of about $500 a year for the 100,000 or so years before the Industrial Revolution.  Then, just ten generations ago, in the late 1700's, the standard of living (in industrializing countries) began to increase by an unprecedented 0.75% per year, fueling a more rapid growth of population. (This was the point at which Malthus made his famously inaccurate prediction of mass starvation.  Like Sachs, Malthus ignored the effects of technology.)  By the beginning of the 20th Century, however, rather than starvation, our economic growth rate had increased to 1.5% a year, and around 1960 it accelerated again, to around 2.3% a year. This is not inflation. This is real income, the result of technology and innovation.  </p>

<p>These two speakers, for different reasons, reminded me of a Deep South hellfire-and-brimstone preacher, threatening damnation to all unless we repent of our sins.  But luckily, the afternoon then proceeded with T. Boone Pickens's colorful turns of phrase, Kevin Roberts's clever and sometimes hilarious TV commercials, and then George Lucas's artistic genius and refreshing passion.  So the congregation left feeling saved, after all.  <br />
</p>]]>
    </content>
</entry>

<entry>
    <title>Generation Gap: The First Morning at World Business Forum</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/generation-gap-the-first-morni.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2196</id>

    <published>2009-10-06T17:40:18Z</published>
    <updated>2009-10-06T17:51:45Z</updated>

    <summary>This &quot;generation gap&quot; problem was very evident in the differences between these three WBF speakers. </summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Short-Termism" scheme="http://www.sixapart.com/ns/types#category" />
    
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>There were three principle speakers the first morning of the <a href="http://us.hsmglobal.com/contenidos/uswbfhome.html">World Business Forum</a> - Bill George, Bill Conraty, and Patrick Lencioni, and they perfectly illustrate the <a href="http://www.peppersandrogersgroup.com/blog/2009/09/privacy-dies-as-distance-betwe.html">generation-gap problem</a> that afflicts discussions of management and technology these days.  </p>

<p>The consensus around the Bloggers Hub was that Lencioni gave by far the best presentation, as a stand-up presenter.  George had good material, although he didn't have the energy or style that Lencioni had.  But Conraty was not so good, either in terms of style (a somewhat plain and boring PPT presentation) or substance (he seemed to miss the ball on CEO pay and on social media, for instance).  <br />
</p>]]>
        <![CDATA[<p>And if there's a central unifying theme from this morning, all three speakers do think that the predilection of businesses to focus on short-term results rather than on long-term value is crippling innovation, productivity, and growth, and will prove to be a competitive weakness for those companies that cannot shake it off.  This, of course, is music to Martha's and my ears, because we've been writing about (and ranting about) what we call the "crisis of short-termism" for years now, at least since we published <a href="http://www.returnoncustomer.com/">Return on Customer</a> in 2005.  The subtitle of our 2008 book, <a href="http://www.rulesandlaws.com/">Rules to Break & Laws to Follow</a>, in fact, is "How Your Business Can Beat the Crisis of Short-Termism."  And we spend a lot of time inside this book drawing out the same basic lessons that George and Lencioni emphasized this morning.  </p>

<p>We even have a whole chapter on "recovering lost trust," in which we tell the same story about Jet Blue's heroic post-ice-storm actions that Bill George told us.  What we didn't know (and I only learned from Bill last night) was that David Neeleman, Jet Blue's founder and CEO at the time of the ice storm service disaster, apparently lost his job as CEO partly on account of some members of the company's board thinking he had admitted too much fault with his apologies, making the airline look bad.  Boy oh boy, talk about a generation problem!  Whoever that board member was, I will absolutely guarantee it was a male, and over 50 years old - probably over 60, actually. </p>

<p>This "generation gap" problem was very evident in the differences between these three WBF speakers.  Conraty was the older, uninformed generation of big companies, focused on execution primarily, not too sensitive to the underlying issues of CEO pay inequity, and seemingly oblivious to the implications of social media in our economy and the workplace.  George is an older guy but very open-minded, focused on understanding, embracing, and "trying out" new things like social media, rather than simply rejecting these unconventional ideas as too untried. I think Bill Conraty must be a great CEO (or HSM wouldn't have invited him to speak), but my guess is he's exactly the kind of executive who would have held David Neeleman accountable for being too forthcoming with customers and giving the firm a PR black eye.  I hope I'm not being too harsh on Conraty here.  It's very possible (likely, in fact) that he's a heck of a lot better CEO than he is a presenter, per se.   <br />
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    </content>
</entry>

<entry>
    <title>How Real Are the Unemployment Figures?</title>
    <link rel="alternate" type="text/html" href="http://www.peppersandrogersgroup.com/blog/2009/10/how-real-are-the-unemployment.html" />
    <id>tag:www.peppersandrogersgroup.com,2009:/blog//2.2192</id>

    <published>2009-10-06T03:33:33Z</published>
    <updated>2009-10-06T03:45:18Z</updated>

    <summary>Downturns provide great incentives for start-ups, which by definition have very little to lose.</summary>
    <author>
        <name>Don Peppers</name>
        <uri>http://www.1to1media.com</uri>
    </author>
    
        <category term="Economic Policy" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="economicpolicy" label="economic policy" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.peppersandrogersgroup.com/blog/">
        <![CDATA[<p>I participated in a panel discussion in Atlanta today, talking about the employment situation now and in the future.  How has the current crisis changed the employment climate?  Will unemployment persist?  Will the lost jobs come back?  </p>

<p>While unemployment is always painful, one thing I have noticed personally about this recession is that many of the people I know who have had their positions cut are not exactly idle.  That is, they are looking for full-time positions, but at the same time they are making ends meet by doing a variety of part-time or free-lance projects.  It's much more common in this crisis than in previous ones to find laid-off professional people working "virtually" from home, at least temporarily, while trying to land a more permanent position.  </p>]]>
        <![CDATA[<p>The other panelist in this discussion, for an audience of Florida State graduates and supporters, was Doug Tatum, an FSU grad and founder of Tatum LLC, the "largest executive services consulting firm in the US with over 1400 professionals and employees."  Doug recently wrote the book <em>No Man's Land: What to do when your company is too big to be small and too small to be big</em>, and he had just addressed the <em>Inc. 500</em> convention a few days previously.  </p>

<p>Our consensus-of-two opinion was that the jobs lost in this recession will NOT all come back, and that this crisis (like many others before it) has transformed the landscape of the economy in ways that may not become clear for years.  But Doug agrees with me that many of the people who are having their jobs cut out from under them are not, for the most part, simply going home and watching television.  They are starting new businesses.  Downturns provide great incentives for start-ups, which by definition have very little to lose.</p>

<p>We also agreed that small businesses are the primary job creators, not large businesses.  In fact, technology today is empowering small and entrepreneurial companies far more than was ever the case before.  Witness the assortment of professional employees hanging out their own shingles.  In fact, everything in the economy today seems to be getting smaller, and faster, and cheaper.  Except the government, which is getting bigger and more expensive.  But that's another topic.<br />
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    </content>
</entry>

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