Monthly Archive for June, 2016

Mr. President, a recovery is not an expansion

Dear President Obama:

For as long as there have been organized economies there have been economic cycles, of which there are essentially three elements:

  • Beginning at the bottom, a recession (sometimes, but rarely, a depression). Historically, sir, recessions are short – often measured in months.
  • In the middle is a recovery, which has the task of healing the defects that caused the downturn while reversing negative growth. Depending on the severity of the recession, recoveries take a little longer, from months to a year or so.
  • And finally, the tide that floats all boats, the expansion. Expansions can last for years, as they did under two of your predecessors, Reagan and Clinton.

In America, we expect a recovery to be a means to an end, not a way of life. Alas, that isn’t your standard, because perpetual recovery has been our economic fate since you took office, four months before the Great Recession ended in June 2009.

Recently, in a speech in Elkhart, Indiana, you said this: “By almost every economic measure, America is better off than when I came here at the beginning of my presidency.” Those of us who have made payroll every month of your tenure see things differently, as, apparently, does your own Department of Labor. Two days after the Elkhart speech, the Bureau of Labor Statistics reported a measly 38,000 jobs were created in May – the worst jobs month in six years. And labor participation – the number of Americans who work – has languished under your watch at rates not seen since the last president who manufactured malaise, President Carter. You can’t have an expansion, sir, if people aren’t working.

Let’s review your economic performance, Mr. President, by the numbers. First, we’ll cut you some slack and throw out your first year in office, 2009. The recession ended halfway through, but ’09 was a horrible year you didn’t create, going almost 3 percent negative. But the next six years, through 2015, the economy averaged a pitiful 2.15% GDP growth. Those are not expansion numbers, sir, and they’re the worst for any president since World War II. Any economist will tell you an expansion is annual growth averaging at least 3%. By the way, 2016 is not trending any better than the past six.

It’s a misnomer to refer to a president as “handling of the economy,” because there are really only two ways you factor directly into its performance: 1) helping by getting government out of the way of job creators; and 2) hurting by putting government in the way. Mr. President, you’ve set a record for the latter as an unprecedented assaulter on job creators. Your weapons are:

  • Anti-business rhetoric – “You didn’t build that” and referring to successful people as “fortunate” who need to pay their “fair share”;
  • Anti-business laws – both the specter and the reality of Obamacare, plus Dodd-Frank, to name the big two;
  • Anti-business regulations, guidance and executive orders from your EPA, NLRB, Labor and FCC.

All of these are unprecedented for any president in their tone, scope, and damage. Not to mention the palpable fear and uncertainty that manifested among job creators.

Here’s more evidence: The NFIB Index of Small Business Optimism, the gold standard for such research, reports the longest stretch of pessimism in the Index’s 43 years during your presidency. This from the sector that creates over half of the jobs and half of the U.S. economy. In my own polling of small business owners, only 9% think you have “been good for the economy,” while more than two-thirds think your policies have been “an economic nightmare.”

Referring to the economy in the Elkhart speech, you said, “We can make it even stronger.” Who are “we,” Mr. President? The Oval Office door will soon hit you in the backside for the last time. With all due respect, sir, if “we” make “it” stronger, that will happen after you leave.

Write this on a rock … Out here on Main Street, Mr. President, we’re not going to miss you when you’re gone.

A father’s tough love is the harder job

As the father of an adult daughter and son, and the grandfather of four knucklehead boys (Hurricane, Tornado, Crash and Train Wreck), I’ve learned some things about love.

All the hours logged as Dad and Poppy have often caused me to contemplate how different are the roles of mother and father, especially in the overt demonstration of parental love. It’s fascinating how the manifestation of this love differs between mother and father—biologically, emotionally and experientially.

A mother’s love, at once sweet and fierce, is observed in almost all animals, not just humans. No doubt you’ve heard this metaphor: “… as sweet as a mother’s love,” and this warning: “Don’t get between a momma bear and her cub.” I have been a witness to, and recipient of both of these expressions of love, and there truly is no other force in nature like it.

But it troubles me that there are no corresponding references to a father’s love. In fact, a human father’s love is more often associated with unfortunate references such as, “tough” and “disciplinarian.” And here’s a warning no child has ever heard: “Just wait ’til your mother gets home!”

Could this be why Father’s Day is not quite as big a deal as Mother’s Day? Just sayin’ …

Mothers occupy the pinnacle of parental love – with justification. And not to take anything away from them, but let’s be honest: since a mother’s sweet love is as primal as the miracle of birth, they don’t have to work too hard to deliver it. But there is a uniqueness about a father’s love that deserves a better rap. Here why:

Unlike a mother’s sweet love, a father’s tough love does not exist outside of Homo sapiens.
When a father’s parental toughness is called for, especially when applied to an indignant recipient (read: teenager), it requires a love that has found the courage to at once endure an immediate negative response and a willingness to defer gratification – sometimes for years.
No one is more keenly aware of the distinction between the application of these two demonstrations of love than a single parent (especially single moms), where both kinds are required of the same person, perhaps within minutes.

Mothers, please forgive any bias you may detect, but here’s my conclusion about parental love: The only force in the universe that comes close to a mother’s sweet love is a father’s tough love. But the latter is the harder job, and the return on investment almost always takes longer.

Write this on a rock … Happy Father’s Day, Dads. You’ve earned it.

Defending your business against Big Boxes and Cyber-Boxes

Besides the traditional, local, competitive landscape small business retailers must navigate every day, they also feel pressure from two other fronts to which they’re typically less adept at responding:

1. The Big Boxes, anchored around the corner.
2. Cyber-competitors, untethered in the Internet.

And pressure from the second one is increasing every day.

Here are a few ideas on how Main Street businesses can minimize the pressure from these two:

Big Box competitors
Let’s begin with these two truths:

1. Unlike Big Boxes, a small business doesn’t have to conquer the world to be successful.

2. The price war is over and you lost.

Your most qualified prospects and reliable customers are also the least likely to spend much time or money with a Big Box. The same feeling that attracts them to the customization and connection of your small business also causes them to be unimpressed by size and underwhelmed by poor service. Those who don’t fit this profile were never real prospects for you anyway; get over it – let them go. Your job is to re-enforce that “connection/customization” emotion by delivering value, not price, and quit trying to be something you’re not – big.

Online competitors
Those same customers just mentioned, who love your small business special sauce, still expect you to provide some level of online support. Your brick-and-mortar store doesn’t have to conquer the e-business world to keep customers happy, but you do have to show up online. Here’s what that means:

1. Two words that reveal why you MUST have a professional presence online: local search. Prospects and customers use local search every day – especially on smart phones – to find companies and consider their offerings. Disregard the imperative of local search optimization at your peril. There are professionals who can help you with this – let them.

2. Besides a regular website, yours must also be mobile-ready, including a hot phone link and directions. Nothing about your business’s past was mobile, but mobile will define your future.

3. Prospects and customers increasingly expect businesses they like to connect with them with useful information, service announcements, and special offerings.

There’s a reason the special offerings were listed last. “Connect” means by any means: email, text, Twitter, Facebook, etc. If you aren’t asking prospects and customers for their electronic contact information, which platform they prefer, and then connect with them there, your business will suffer the slow death of irrelevance. And remember, some will still just want face-to-face.

You can compete against the Big Boxes by merely not trying to be like them. And regarding traditional best practices and the virtual world, remember this: it’s not either/or, it’s both/and.

Write this on a rock … You don’t have to conquer the world; just show up and be yourself.

Face-to-Face: Old School fundamental and New School cool

For 172 years, communication technologies have sought relevance in an increasingly noisy universe.

Now, well into the 21st century, there is actual management pain from an embarrassment of riches of communication innovations. And this discomfort is especially keen when staying connecting with customers: Should you call? Email? Text? How about IM?

And when should you use social media platforms? I’ve had customers who want me to connect with them on Twitter. Others send me notes on LinkedIn.

But in an era where there’s an app for everything, there is one connection method we must never be guilty of minimizing. From Morse to Millennials, in-person connection has retained its relevance as Old School fundamental and New School cool.

Indeed, face-to-face is the original social media.

Today, social media euphoria is being tempered by ROI reality. And as useful as each new communication resource proves to be, they are, after all, merely tools to leverage our physical efforts, not eliminate the basic human need for human interaction. Consider this story:

A sales manager (whose gray hair was not premature) noticed the sales performance of one of his rookies was below budget for the third consecutive month. Of course, he questioned the numbers previously but had allowed his better judgment to be swayed by plausible explanations. Now the newbie’s sales was trending, but in the wrong direction.

Upon more pointed probing, the manager discovered the reason for loss of production: too much electronic and not enough in-person connections. The rookie was relying too heavily on virtual communication at the expense of opportunities to get in front of the customer.

It turns out lack of training, demographic reality and not enough “rubber-meets-the-road” experience left the young pup uncomfortable and unprepared to ask for and conduct meetings, like a proposal presentation. He wasn’t benefiting from how the success rate of growing customer relationships can increase when critical steps are conducted in person. Consequently, this manager immediately developed a training program that established standards for how and when to integrate all customer connection tools, including face-to-face.

If your sales performance isn’t trending the right way, perhaps your salespeople need help getting in front of customers, particularly at critical steps. Like the manager above, you may need to establish specific, measurable and non-negotiable standards for when face-to-face meetings should take place.

From telegraph to Twitter there is one connection option whose relevance has borne witness to every one of the others: in-person contact. Let’s remember John Naisbitt’s prophesy from his 1982 book, Megatrends: “The more high tech we have, the more high touch we will want.”

Write this on a rock … As the original social media, face-to-face will always be relevant.




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