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A Message to Airlines: Think Before Acting

As a keynote presenter, I fly a lot. And I’ve seen and experienced the many changes airlines have been making over the years, most of which haven’t been positive from a customer’s perspective.

Yet, even with all the changes and added fees airlines have been charging, from baggage fees to pillow fees, most are still struggling. For instance, American Airlines is in bankruptcy, and almost every airline has been merging because if they don’t merge they’re going into bankruptcy.

In fact, if we look back in history, most of the major and some of the minor airlines that are still around have been barely surviving. They like to blame high fuel costs for this, but that’s not the whole story. Unfortunately, the airlines are making sure that customers find little to like about them.

I spoke with a friend recently who did a cross country flight on a major airline, and his comment was, “The seats were so old on the plane. They had no cushion in them that it was completely uncomfortable the entire trip.” I’ve experienced these rock-hard seats too.

This is where airlines need to be anticipatory. The competitive advantage is not in doing what everyone else is doing—which in this case is raising fees and lowering value. The competitive advantage is going in the opposite direction.

All airlines actually have a huge opportunity to win customers back and gain advantage if they simply focus on solving their customers’ problems. For example, if an airline upgraded their seats to be comfortable, they could tell customers, “We’ve checked all of our planes and have gotten rid of those old, rock-hard seats. As a matter of fact, if you find a rock-hard seat, tell a steward right away. We’ll change it so you never get another one on this airline.”

By doing this one simple thing, the airline would be giving customers a voice—a voice of change. Even if I did sit in a rock-hard seat, I’d know I can tell someone and trust them to take care of it. I’d even use the airline again because they listened and promised to take action. And that’s all most customers want—to be heard and be a voice of change.

Thanks to social media, customers have a way to come together, state their case, and be heard. And we’ve seen that doing so actually works and causes change. So rather than protest in person, we can arrange an online protest to American, United, Delta, or any of the airlines that are doing things we don’t like. Just like physical protests such as the Occupy movement, virtual protests work too, as we saw with people protesting online about Bank of America’s proposal for a $5 monthly debit card fee.

In the long run, these types of virtual protests are a good idea, whether they are directed to an airline or a bank. Why? Because it gets companies to wake up and think more before acting. And from my experience, thinking before acting is always a good thing.

All I Really Need to Know I Learned in Waffle House

By Guest Author James Adams

As evidenced by the “Occupy Wall Street” movement and European debt debacles, the pervasive sense of economic malaise that began more than three years ago isn’t fading anytime soon.  The apparent ineffectiveness of stimulus packages and a zero interest rate policy have left Americans understandably skeptical of their government’s ability to return their living standards to pre-recession levels.  Stagnant economic conditions have generated at least one positive development, however: spurring a long-overdue interest in financial education.

After my layoff from a money management firm in early 2009, I decided that I needed an extended hiatus from financial services.  Two years spent apologizing to banks, pension funds, and insurance companies for imploding mortgage securities that my firm had purchased for them had drained my zeal for the profession.  As my growing sense of guilt for my small role in the financial crisis deterred me from pursuing unemployment benefits, I decided to instead work at McDonald’s.  There was just one problem: despite repeated application efforts, they wouldn’t hire me.  Eventually, I was hired as a Waffle House server and assigned to work on the weekend graveyard shift.

No sooner did I land at the diner than I found myself under the tutelage of Edward, one of the restaurant’s only two “master grill operators.”  The mustachioed veteran barely showed thirty-five of his nearly fifty years of age.  An otherwise average build was accentuated by broad shoulders and sinewy forearms.  In addition to cooking, Edward provided trenchant (and usually ribald) commentary on all customer and employee activity.  Beyond entertaining the wait staff with colorful innuendos and euphemisms, he imparted a few career lessons I’ll never forget.

Social Media Reshaping Both Business, Protests

Q&A talks about social media and the Occupy movement with author and futurist Daniel Burrus. His consulting business is Burrus Research Associates in Hartland, Wis.

Q: You put forth the question: Is the 1 percent of the population’s wealth really fueling the Occupy protests across the nation, including Hartford, or is it that with social media it is so easy to get a protest going no matter what the cause? OK, which is it?

A: The Occupy protests are due to shared concerns by a large number of people, but they are only the latest in a series of protests that have been enabled by social media and there will be many more on a variety of subjects. It has never been easier to get a protest going anywhere in the world using social media tools to both connect to the targeted audience, in this case potential protesters due to their discussions, interactions and communities of interest, and arrange a specific time and place to meet. This will become easier every year due to increasing technical advances.

Q: Spontaneous demonstrations that pop up across the country hardly seem new, though. In the last 45 years, since the Vietnam War for example, there have been events like these. What’s different?

A: Smart phones. Because smart phones are with us all the time, and they are both a phone and an inexpensive computer that has access to the Internet including social media, and 85 percent of all phones sold globally this year are smart phones, and there were already a large number of smart phones in use in 2010. Spontaneous demonstrations will continue to be the new normal.

The Predictable Effects of Washington’s Indecision

The downgrading of the United States’ credit score after the recent debt-ceiling negotiations is just the tip of the iceberg of what’s to come.

In fact, there’s a predictable cascade of events that this situation cost us.

The question now is, can we turn the situation around, get back on a growth track, and avoid some of the negative effects?

First, let’s get to the real issue we’re dealing with. It’s called “indecision.” Leadership in Washington on both sides failed to come to a decisive conclusion on the raising of the debt ceiling—something that, historically, was quite easy. And even though it may seem that a decision was made, in reality it was an indecision that occurred—a decision to postpone the final answer and send it to a committee made up of people who fundamentally disagree with each other.

So instead of the problem being resolved, it’s still out there. That’s not leadership; it’s a huge injection of uncertainty, which results in increased risk. And that’s what Moody’s and the rest of the world is looking at—they see that our government isn’t dealing with the real issues and lacks true leadership when we need it most.

Take Your Biggest Problem…and Skip It

In order to see invisible opportunities and solve seemingly impossible problems, one of my favorite strategies is Problem Skipping. Every business has problems—some larger than others. Often when trying to “fix” a tough problem, the company gets even more mired in the challenge and can’t get past the roadblock.

The Role of Today’s Manager Includes Leadership

Managers change how people behave; leaders change how people think. No matter what economy we’re in or how a company is structured, the need for management and leadership will never go away. What will change are how we manage and how we lead, as well as the tools we use to perform those functions in a better and more efficient way.

The Next Generation of Email Marketing

Junk mail is good mail that went to the wrong person. For email marketers, the same concept is true. What one person considers spam is the perfect message for someone else. The key is to make your email message highly relevant so recipients don’t dismiss it as junk.

The App Revolution

No one can deny that apps for smart phones are revolutionizing the way people not only use their phones, but also how they function in daily life. From apps to help you relax to those that simplify to-do lists or teach you a new skill, there’s an abundance of apps in virtually every category imaginable. In the iTunes store alone there are over 125,000 apps, and over one and one-half billion downloads have taken place.

Continuously De-Commoditize

Look at every product and service you have and ask, “Why is this item a commodity?” Then ask, “What can we do to make it different?” For example, look at the features and functions of your products, how things are housed, how convenient the product or service is, what the customer experience is like, how something is processed or made, etc.

Decommoditize by Identifying New Needs

No matter how mundane your product or service is, chances are people have different needs around it today than they did a few short years ago. As the world, economy, and culture changes, so do people. Their reasons for buying something yesterday may be different from their reasons today. As such, you need to always be looking at what your customers’ current needs are and then find ways to de-commoditize your product accordingly.

Follow Trends To Decommoditize Your Product

Pay close attention to the trends going on in your industry and with your customers. Based on current trends happening, what future trends can you identify? If you can accurately pinpoint where your industry or customers will be in the next few months or years (or what your customers will want), you can de-commoditize your offering and get that business.

Make Your Commodities Stand Out

No matter what industry you’re in, chances are you have a few products or services in your line that are commodities. From food and beverage items to household products to daily services, commodities are everywhere and make bottom line profits harder and harder to attain.

Always Take Competition Seriously

Look at the specific ways in which you compete in the marketplace as well as what makes you unique. Then decide how technology can redefine the way you compete. For example, when was the last time you bought something from the Polaroid Company? At one time, they were the king of instant photography. But then technology and digital photography changed their industry, and the way they competed (instant photography) changed…but Polaroid didn’t change with it.



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