Monday, May 30, 2016

Monuments of a Commercial Past

Lighthouses are a monument of the past that represent a time when shipping was the main mode of transportation and method of moving products. The Great Lakes were an integral part of the country economy and movement of natural resources. The houses and families that once lived there are gone but the blinking lights that indicate land are still there.

People visit these monuments because they find them to be peaceful reminders of our past. They were part of what made our country great. As people visit these historical places they read about some of the families that lived there and what it all meant.

In Delta County Michigan there is a long maritime history of ore boats, logging, shipping, and natural resources. The water was one way in which people spent a great amount of time cultivating to ensure their survival in a harsh environment. The water and its gifts are still very much part of local life even though modern amenities have made their way into the area.


Saturday, May 28, 2016

Succeeding in Small Business by Offering Something Unique

Small businesses don't often have the capital, manpower or resources to make their businesses competitive with larger chains. They suffer from a lack of having most things. Businesses that try and be all to everyone often fail as larger chains use their deep pockets to create exceptional facilities and economies of scale. Small business compete best when they create a niche and focus on a few service enhancements.

Large chains will always cater to the middle of the market in hopes of earning the most amount of money. This leaves everything outside of the bell curve for prime pickings for small business. For example, a large chain may focus on families with children that want pools while a smaller hotel might focus on providing exceptional comfort for retires.

This creates a fundamental shift in how the business thinks. All the marketing, design, decor, and associated services would be geared toward this niche demographic. Instead of marketing in the general paper they would focus more on niche publications and outlets. Instead of emphasizing the local sports activities they might focus more on restaurants and activities that appeal to their core demographic.

If you have a small business consider how you can maximize your opportunities by finding a true demographic that fits outside the average curve. By developing and focusing on this target customer you can draw in more interest and people that are willing to pay for your service and come back over and over. With enough time and forethought you could have a thriving business again.

Modern Airport Travel

The modern airport offers conveniences beyond what our parents could have imagined. Recent generations have become increasingly familiar with airports as a method of traveling. They expect more and get more in terms of amenities and options. From free Wi-Fi to piano lounges seem to be only some of what they expect.

Partly a mall, a strip of restaurants and a transportation hub the airport offers a complete flying experience. Generation X also expects these things. They don't want to travel and be inconvenienced by poor design. Localities are investing more money to make these things happen. Airports are now little cities.

Security checkpoints are becoming more customer friendly and airlines are trying hard to accommodate customers. Incidents do happen and there are service failures but this is becoming more rare.  Improvement in the overall speed and customer friendly processes are improving.

Service skills will still be important. You can have all the fast checkout lines and amenities you want but at the end of the day it is necessary to treat people well. Friendly, fast, and as individuals. Airlines were once notorious for thinking about people as numbers. Service recovery will become increasingly important as people come to expect more.

Friday, May 27, 2016

Why do People Skew Information?

I often wondered why people can see the same thing and come out with different conclusions. While thinking about this for some time and my knowledge of business, society and psychology I believe there is a fundamental reasons why information gets changed in a persons mind. People see what they are interested in and socialized to accept.

Consider two people in a conversation about a particular topic. Both hear something different and see the event differently. It is possible that the information they saw, retained and recalled is based on their memory and interest. If we are interested in a particular topic of information then we will remember that which either confirms our interest or that which helps us.

People skew information either inadvertently or intentionally. Through the natural course of paying attention to some information and ignoring others they may be inadvertently skewing the information. However, some skew information in order to obtain a benefit that wasn't necessarily derived from the conversation.

For example, a person could try and skew information to bolster their position with others or to try and reframe information. An important and regularly used method that is effective. Power structure makes this even more difficult when people who don't hold equal power dont have the ability to call the bluff without consequences.

Likewise, people have developed mental models throughout their lives and use those models for interpreting information. Those models filter out some information and leave other information. The interpretation of the event and top becomes skewed by the model. If the model is dysfunctional it will be consistently inaccurate.

Metrics and Personality Create Organizational Culture

Organizations are not built by official policies but by the implicit knowledge that is transferred by how people are promoted and the personalities of key stakeholders. The total information come from the environment will determine how the employee interprets what it takes to get ahead and the appropriate activities are. When most employees have the same impression you have corporate culture.

Corporate culture is the unwritten rules and expectations of the workplace that move beyond the formal written expectations. Many companies fail because changes in the formal structure are not accepted in the corporate culture and the organization begins to not adapt to its environment. Changing corporate strategy means changing how people are paid and the personalities that influence the outcomes.

It is hard for companies to figure these problems out because 1 + 1 doesn't equal 2. It takes considerable experience and knowledge to understand how these subtle influences work. Yet they may actually be the most important part of how the business runs.

Consider a company that has formal rules but there is an active culture where people are paid for some activities and not for others. It would make sense that everyone from the employee to the senior leadership seek out additional rewards and compensation. If the metrics used to determine performance are misaligned with the organizations mission it is only a mater of time before problems arise.

The same can be said for personalities. One bad apple in a leadership position can poison all the other apples in the bunch. In essence, the perception of that bad apple emulates throughout the company and the department. In the end an entire social network can be formed that has almost nothing to do with what the company is seeking to accomplish.