Today the ride share service Uber, did more again of what it seems to be good at – acting like jerks. During the Sydney Siege they conducted a price surge and put prices up to reflect the demand for transport at a time of serious civil disturbance. But the most disturbing thing, isn’t the price, it’s really the attitude.
This is one time when industry disrupters can take an important lesson from their industrial era counterparts. Let’s take legacy airlines. Our national carrier Qantas has on many occasions diverted flights at no cost to pull people out of countries which present an immediate danger to Australian travellers.
While Uber later countered their original decision with a ‘Oh, and we’ll pay the fares’ tweet – below – it was clearly an afterthought when the rightfully astounded community reacted.
It turns out our natural intentions are revealed by how we behave before we get feedback.
New book – The Great Fragmentation – out now!
I have my apps set up so that they will automatically update whenever I am connected to wifi. It’s pretty handy to have the latest version of something, assuming of course they make it better than the previous version.
But what I’ve noticed recently, or more aptly haven’t noticed, is that apps have a habit of changing their logo, or colour scheme. Which most often means I can’t find it, and all of a sudden I have the chance to drop the habit of using their service, or even worse finding a replacement. It’s worth remembering that the shape and the colour of an app’s logo is the cognitive shortcut we look for when we need to use it. And more often than not a logo or colour change is really only serving the people who make it and not those who actually use it. Unlike aribnb (who recently changed their logo) get front page stories when someone in their office sneezes, most app developers and curators are not so fortunate.
Just because we become bored with something we see a zillion times a day, it doesn’t mean our customers want to relearn what to look for.
I’ve spent an equal amount of time in large corporates and startups. With the success that large companies have achieved comes an entirely new set of cultures which they could do without. So here is my top 10 list of behaviours large companies could do without:
- Public reading events. Organise a room full of people and stop their work to read stuff to them instead of actually providing an inspiring change instigating presentation.
- Pre-meeting meetings: Getting everyone ‘on the same page’ – I felt sick writing that… yuck. Time wasting. Have some courage people.
- Promoting the best political performers: Ensuring the political champions kick on instead of those making a difference in the market.
- Skimp on the product: Remove cost from product instead of having a product in which customers would tolerate price rises for.
- Creating information spirals: Gathering more research to reduce risk and avoid making a ‘go’ decision while the market opportunity gets taken by nimble competitors.
- Developing slogans instead of getting stuff done: A company I worked for had a new one each year. One was Fewer Bigger Better. It was a great way to justify not doing anything.
- Developing internal language: Having a culture of industry jargon, codes and acronyms to create the ‘self aggrandising’ illusion of intelligence. Talking to themselves
- Mistake avoidance culture: Creating a fear of decision making, by rewarding staff for not making mistakes.
- Penny pinching: Closing the stationary cupboard during a tough year, yet the senior people can still afford those first class trips to international trade conferences.
- Global alignment: Ensuring the packaging for Australia is the same as the packaging in Lithuania when the product comes out of different factories and is served in different cultures. Confusing when global focus is a disadvantage.
What’s your favourite piece of corporate folly?
It was recently the 50th birthday of that favourite chocolate spread we sometimes convince ourselves is ok to eat between two piece of bread. Nutella.
What a lot of people don’t realise is that Nutella is what it is because they couldn’t afford to make it the way they wanted to. Originally Nutella was a pure chocolate spread, but during the post WW2 era, a time of heavy rationing in Italy, they bulked up the ingredients with hazelnuts. They did this because hazelnuts were plentiful in the local area and much cheaper than cocoa per kilogram. The presence of mind to turn to the woodchips, in this case hazelnuts, and remarket the brand was very clever indeed. The branding was adapted to talk up the nut credentials and make people believe it was actually a hazelnut spread.
In fact it only has 13% hazelnuts and a whopping 52% sugar by volume – ironically about the same amount as the white label on the jar. While I’ll leave the moral discussion on the marketing of Nutella for another blog post, the question it poses for all of us is this:
How do we turn necessary cost cuts or lack of availability of inputs into brand advantage?
There’s a lot of things I’m not good at, getting free media coverage for my startups is not one of them. Every project I’ve ever worked on I’ve managed to get major mainstream media coverage for it.
I recently wrote a post for the crew at Pollenizer on the Sammartino methods in getting how to get media coverage. I call it:
How to media hack your startup to awareness.
Like most things in business there is a recipe, and once you know it you can cook up that dish just about any time you have the right ingredients. A couple of my favourite recipes are right here.
If you want to work with someone, or for someone, people falsely believe that they have to ask for permission. That they need approval to start working with those who inspire them. The opposite is true and if we really want to work for someone, then all we need to do is start working for them. Start being a resource and creating value to what they do. It’s probably the best way to end up doing business with someone. To prove your capability, to demonstrate effort and to do it without asking for anything in return in the first instance. To be the resource.
I recently happened upon a great example of it. Aspiring advertising graduates went right ahead and did that for Tesla Motors. Here’s an advertisement they created below.
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The interesting thing is that it got a all the way to Elon Musk.
Just think about it, they’d never be able to get a meeting with him, to pitch an idea for an advertisement (mind you Tesla does not do any traditional advertising and does’t really need it – which is what happens when you make great products). But the lesson here is a vintage case of modern day bootstrapping. If we have resources at our disposal for connection and creativity, there’s nothing stopping us from using them. It’s those who create first without asking for anything who win respect and future opportunity.
This post by Seth Godin got me thinking about how to generate trust when we are a new brand or startup on the block. Here is what I think:
Building trust is simple. Create stories by doing things which exceed expectations. One customer at a time. When we do it, they share their good fortune to have done business with us. Trust never comes from the brand owner, but the interactions with the brand recipients. They then deliver that trust to others who buy the brand off them metaphorically. Thought they’d get X and they got X+1. They tell people about their win. We win by being generous.
Startup blog says: Generosity is the fulcrum of trust.