Get Connected

COMMUNICATION DISCONNECT

It is both a symptom, and a cause for concern for many in business. Moreover, it is both a verb and a pro-noun, that can be applied to many businesses.

In short, customers, clients, suppliers, associates - and yes, even staff, - are becoming increasingly disconnected and detached, physically and mentally, as a consequence of over-communication, which is a characteristic of on-line transmissions.

For many, the “hot button” has been replaced …. with the “Delete” button. Emails, blogs, text messages and messages are eliciting responses. Typically, and disturbingly, they are not those intended by the communicator.

TOO MUCH OF A GOOD THING

Most people in commerce, the public sector and not-for-profit entities despair at the plethora of emails which await them each morning. The mobility of iPads and Smartphones has simply compounded the issue.

Those appealing aspects of accessibility, immediacy, transparency and accountability are countered by stress, a sense of intrusiveness and the widespread evidence of lethargy, disinterest and clinical depression.

The effectiveness of advertising, public relations, promotion and merchandising is being compromised. So too are initiatives intended to enhance branding of companies, products, services, communities and precincts.

All of these arise and confront business owners, leaders and networks at a time of increased and rapidly increasing sophistication.

TURNED OFF

In general terms, people across a broad spectrum of demographic and psychographic profiles have, or are, turning off.

Look no further than Twitter, the company, the channel and application. Its share price is experiencing a downward spiral as former younger disciples (or users) are cancelling their connection. They are responding to an awakening realisation of just how intrusive on-line and digital communication has become.

Some analysts and commentators question the future viability of Twitter and similar entities.

The challenge is to turn people on by having them reach out, connect and become engaged with a company, product, service or team member of interesting and interested people.

Brevity and space will become greater virtues than they currently are. People are, and will increasingly be, attracted to embracing experiences which promote offers, and respect an environment, in which individualism and individual presence are valued.

In similar vein to property, many people are seeking a “sea-change” or a “tree-change”. They are not choosing to opt out, but rather, to reconnect – on their own terms. They remain alive, alert, active and technologically wired.

PASSIVE AND SELECTIVE

The significant evolving structural changes in commerce and consumerism are often misunderstood.

Overt and active loyalty and advocacy are waning.

The passive phases of the buying cycle are being extended and are now more pronounced.

Physical “window shopping” has largely been replaced by on-line visits. Consumer traffic counts at shopping centres, in retail precincts and premises, at motor vehicle dealerships and swimming pool display centres are down, and those visits that do occur are a lot briefer than before.

No amount of intrusive, supposedly personalised, mass-customised communication will redress that established trend-line.

The promise and actions of “understatement” have widespread appeal and attraction. Evoking greater measures of emotion will result in enhanced images, sales and satisfaction.

High-pressure is best left to Emergency Services water hoses, in their role and endeavours to put out bush-fires.

A low-pressure presence will stoke the embers of interest and patronage.

THE FOCUS

The race to remain competitive and to secure advantage by embracing digital, on-line and social media can readily overlook the importance of the content and the context.

During the 1960s IBM conducted a marketing campaign with the theme:

“Yes, you can”

Today the rider is:

“Now, choose the best way to reconnect”

Make A Statement

A capability statement is, too many people in business, an important, if not an essential document.

Some existing and prospective clients demand submission of such literature. However, securing contracts and benefits as a consequence is not guaranteed.

Indeed, on balance, in many instances a capability statement is a disqualifying rather than a qualifying element in the selection process. Assessments are made on the capacity of those making such submissions to fulfil the basic requirements and expectations. Thus, the texts often simply determine whether a company or a professional is eliminated from the shortlist of potential suppliers of products, services and input.

In a disturbingly large percentage of instances it is a just reward. Put simply, many capability statements are crushingly boring.

SELF-CENTRED

Too often the focus is self-centred. Little or no reference is made to the unique circumstances, nature, demands and needs of specific prospective clients, projects or applications.

It is difficult to imagine any self-respecting prospective client contemplating the appointment or use of unqualified, or under-resourced, poorly capitalised individuals, teams or entities. In reality, such written overviews contribute to the commodisation in the profiling of the applicants. Shades of grey, beige and a conga-line of sameness!!

Fun can be enjoyed, excitement created, pride injected and business won from a total review of the content, context and focus of capability statements and corporate literature.

CUSTOMER-FOCUS

References about being customer-focused and client-centred assume new perspectives when literature is refined. The rewording of texts can and does articulate invaluable insights, provides peace-of-mind, differentiates products, services, people and entities and, above all, provides scope for the establishment of comprehensive advantage and value.

In competitive circumstances it is important to recognise that business and marketing are not about “me”. Customisation is the currency of the prevailing market place.

MASS CUSTOMISATION

The on-going, rapid and accelerating advancements in technology and digital applications are making profound impacts on business and communications.

Concepts like “now” and “local” have been remoulded. In the latter instance, it is no longer a geographic measure. We are all (and at all times) just a click away.

Likewise, standardised capability statements have been superseded by customised versions of capabilities statements. Corporate brochures and products/services catalogues have been similarly redefined. Reality now extends beyond long print-runs of corporate literature. Image. Short-run productions now in the marketplace are having high impact among recipients.

Book publishers and authors are still coming to grips with the capacity, the need for and the advantages of mass customisation. As a consequence, sales are suffering.

Magazine subscribers regularly receive issues with their names printed on the front cover. Impressive and effective.

Moreover, customised literature addresses the commonly held belief of existing and prospective clients that their needs, wants and circumstances are different and unique. Such real and perceived issues can be, and should be, addressed in customised literature.

Featuring the corporate identification of a prospective client on the front page of a written submission, regardless of format, is not subtle. However, it is effective, in many ways because it is unexpected.

In the words of US retail expert, Peter Glen, “Dare To Be Different”.

In similar vein, non-complying tender documents provide the potential to stand apart from the crowd. Traditional capability statements, when they are oriented and scripted to promote, profile and detail a capacity to establish, sustain, develop and enhance mutually rewarding strategic alliance relationships are valuable. Those attributes are to be lauded.

For those who find comfort in compliance and conformity, the proposition will be difficult to comprehend, accept and implement. To them making “the short-list” is important.

No it is not. The objective is to win the business and to enjoy a long-term effective partnership.

Those who seek success do need to make a statement - not about capabilities but rather about client-relevant outcomes, advantages and of benefits.

THINK DIFFERENTLY

The increasing use of electronic transmissions is an enabling, differentiating and marketing phenomenon. Executed astutely, the results can be phenomenal.

A marginal increase in the allocation of time and resources can, and often does, result in significant rewards, including increased revenue.

Perhaps the first step in the progression to market-leadership, comprehensive advantages and differentiation is a change in thoughts and perspective: the scope of communication needs to be reoriented from broadcasting to narrow-casting. Targeted audience sizes should be reduced from multiplies to singular.

NARROW-FOCUS

Nano- technology has minimised electronics, medical equipment, many aspects of commerce. The advances, consequences and advantages have been quantum in nature, primarily because of such a micro- perspective.

The message is clear and concise; to develop, advance and to grow big, think small and personal.

Towards High Performance

High performance is not a natural state. It is an aspiration, a stretch goal that is difficult to sustain.

Pursuit of that status has no finish line, the objective at all times, for those driven to that ideal, is to plan beyond the benchmark.

The measure of high performance as a concept is relative rather than absolute. Personal and competitive forces are at play, at all times. It is - an evolving set of dynamics.

Skills, knowledge, training, mental and physical fitness each play a role. However, there is one driving force which is first among equals, and it is PRIDE.

A positive sense of pride elevates self-belief, ideals and standards. It lifts performance to notable heights.

Pride is an intangible. Its presence is conspicuous. The consequences are palpable.

In business and commerce, pride has a number of key and strategic dimensions, such as:

LEADERS

Employees and team members who feel a sense of pride in working for and with a manager, team leader and supervisor typically exhibit the characteristics of someone who is empowered. They are inclined to be innovative, creative and responsive. Accountability for high performance is readily accepted.

Compromise and indifference are foreign to their frames- of- reference, as they know who they are and what they stand for within their employment setting.

COMPANY

Pride in being associated with a company and its brand is self-motivating. It inspires one in the morning and there is a wish to get to work. Indeed, there is no drive to contemplate or wish to working for any alternative employer.

Reliability and engagement are qualities appreciated by employers and customers alike.

PRODUCTS

A measure of pride in promoting, selling and servicing a product or products and to service these is usually reflected in enthusiasm for the marketing and recommendations of those units.

High performance measures are evidenced in sales volume, profit margins and customer satisfaction. It quantifies the advantages and benefits for all stakeholders and participants in the relationships. Those interactions also tend to persist and are both reinforced and complemented by personal recommendations and endorsements.

SERVICE

Commitment to a quality brand is a cornerstone of consistent and persistent service excellence. Non-varying service standards ensure consumers appreciate the innate value of high performance standards before, at the time of and after the purchase decision.

It's enough to make buyers proud of the decision they have made.

SELECTIVE RECRUITMENT

Cohesive integrated teams, whose members pursue, achieve and sustain high performance levels invariably reflect discerning and demanding recruitment and induction philosophies and practices.

Leaders who look for high performers are sensitive to the needs for and benefits of documenting detailed job descriptions, complemented by specific job specifications.

The former outline the range of duties and skill-sets involved in and required for the position. In the latter statement insights are provided on the human qualities that are essential to maintain the standards sought, if not demanded.

Recent examples abound with national cricket teams in which certain elite high performing individuals were a toxic, destabilising influence in team cohesion and performance.

The lessons learnt are that individual high performances in isolation are to the detriment of the team, produce losers, losses and disenchantment among followers. There are few fans of high performers who do not play for and contribute positively to consistent high performances of the team.

IMPORTANT PARALLELS

Sir Donald Bradman was, to many, an immortal cricketer. He was a persistently high performer which is reflected in his unparalleled Test match batting average of 99.94 runs.

“The Don” was forever aware of - and repeatedly stated - that he was playing for Australia. Pride in wearing the “baggy green” cap transcends eras, generations and teams.

The recent on-field performances of the World Cup champion Kangaroos Rugby League team is explanation enough to comprehend and appreciate the value of pride in the high performance expectations and delivery of a great team.

Similarly, the New Zealand “All Blacks” enjoy an enviable record of high achievement. Each player, who proudly wears their jumper, is known as an All Black for life. They take the distinction to the grave for it is only they who on their headstones can declare “He was an All Black”. Imagine if you will, the high performances in another place of the game that is played in heaven.

TELLING CONTRAST

The contrast in the ambience and atmosphere within those companies, and among those employees, who are not imbued with a sense of pride is striking.

Apathy, disinterest and disconnection prevail. An absence of enthusiasm, excitement and pride is evident, and is reflected in poor sales, marginal profits and low customer satisfaction.

Rationalisation about, and justifications of sub-optimal performance records are common. The blame- game is often centred on a distracting focus on extreme factors- the economy, the national currency and, competitor discounting.

External forces are best countered by internal initiatives. Pride comes from within.

LEADERSHIP

Successful business leaders are often asked, interviewed and reported upon with questions about what they believe is leadership. Predictably, the answers are many and varied.

A good start for all current and aspiring leaders will be to inspire within each person a sense of pride about the company, the fellow team-members, the product and the services provided. That will be a stepping stone to the attainment and maintenance of high performance.

In the current vexing and challenging economies and marketplaces some things stand above and apart from all countervailing forces. The most noticeable of these is high performance, underpinned by a widespread sense of pride.

Less Bluster, More Cluster

You're not alone … and shouldn't be. Going it alone exposes one to vulnerabilities, risk and “attack” from all angles.

Genuine, mutually beneficial collaborations and alliances have been elevated to the status of being competitive and comparative imperatives.

There is increasing and encouraging evidence of businesses, networks, communities and sectors winning business and market share as a consequence of implementing disciplined, collaborative and integrated business development and competitive initiatives.

Collective efforts and endeavours contribute to attaining, maintaining and benefiting from critical mass and momentum. The latter attributes distinguish those who are gaining marketplace traction from those who are losing traction, sales, customers and marketplace presence.

The compelling bottom-line for manufacturers, suppliers, associations and contributing stakeholders in dealing with a uniform, cohesive supply chain is PRODUCTIVITY.

In the challenging, if not straitened early months of 2014, the underlying philosophy of the “dark art of economics” – the allocation of scarce resources – is coming to the fore. Limited resources are being applied to where entities will enjoy and be rewarded by “getting the biggest bang for the buck”.

Striving for and achieving optimal leverage are understandably determining strategic and tactical decisions.

Servicing, contributing to and working with cohesive networks are appreciably more attractive, less labour-intensive and less expensive than endeavours to provide one-on-one inputs for a diverse range of small independent operations. A relatively small loss of independence for individuals in favour of the greater good for all is a marginal cost to bear.

CLUSTERING

Regional and remote communities throughout Australia and New Zealand are fast recognising the benefits and advantages of the “clustering” (read: concentration) of entities, products, services and applications.

Organisation hierarchies and strategic alliances between professionals and consultants are being restructured.

Greater impact, resonance, relevance, quality and performance standards are being enjoyed by all.

The town of Kununurra, in the far-north-west Kimberley region of Australia, home of the largest diamond fields in the world, the massive Ord River Diversion Dam and centre of countless tailored agricultural initiatives and innovations, is finding new directions, opportunities and scope for its local businesses, entrepreneurs and people. The individual and collective energy and excitement are palpable.

It is early days, but the prospects are being recognised, analysed and developed. Increased visibility in the marketplace as an attractive destination for tourists, businesses, entrepreneurs and capital is resulting in enhanced activities.

Bringing people, concepts and energies together is being completed with the setting of standards and securing commitments to adhere to them.

LIFT YOUR STANDARDS

Inevitably some don't and won't make the grade.

Attrition is an integral element of history, evolution, life and business. Exit and succession strategies are virtues in life – and in business plans.

Evidence of Charles Darwin's “Food Chain” principles will be strikingly apparent during the course of 2014.

In short, some businesses will fold or “die”.

Therefore, those who choose to “cluster”, collaborate and integrate will need to establish minimum and, in many instances, “stretch” standards to remain competitive, relevant and sustainable.

There is little benefit, advantage and joy derived from the tendency for things to gravitate to the lowest common denominator. The name of the game will not be numbers alone. Domination, - by leadership, discipline, creativity and innovation - is a far more compelling goal.

Overall, business failures and closures will be a conspicuous reality. They can be minimised by the conduct of objective, detached and timely strategic reviews. Selling businesses will be one option, to avoid the undesirable demise of some entities and outlets. It could and will be encouraged and facilitated by and among those in differing supply chains.

Some egos will be brutalised. However, it will be a case of ...‘e goes or we all go … down the gurgler'. That will be a cold, stark fact of life …, which, on reflection, will be fair to all concerned.

HARD DECISIONS

For many business owners and managers around the world trading conditions are being classified as “hard”. Consequently, there are few or no “soft” decisions or options available for those who seek to remain competitive, viable and sustainable.

The best timing for the making and implementing of hard decisions is NOW.

Winners do and will recognise the importance of creating a sense of urgency, being focused, tolerating risk, establishing momentum, maintaining standards and forming collaborations and allegiances, while not accepting complacency, indifference, lack of commitment and sub-optimal performance standards. In short, “less bluster, more cluster”.

What's New

Lessons learnt.

The evolving trends in consumer demand and expenditure for Christmas 2013 are interesting and insightful!... for all in businesses.

In essence, there are few consistent, uniform trends. Winners and losers are being identified and are being determined by individual efforts and creativity.

Jewellery sales, a typical discretionary purchase are down – by as much as 40% in some retail outlets. The impact is being felt throughout the full length of the supply chains. More than 21 jewellery wholesalers have ceased trading this year.

Notwithstanding forecasts of 6.3% (and more) increases in revenue this Christmas, over that of last year, sales are flat. However, there are noticeable movements in consumer traffic.

Discount department stores are enjoying a good festive season. This can be explained in part by the absence of significant ranges of new products, services, concepts and applications. “New” represents relevance, and above all, value. Price sensitivity is figuratively and literally discounted.

This Christmas there is a preponderance of “old”, established and traditional offerings. Many have been morphed into commodities, which are available from all and sundry. Hence, price is the key and dominant differentiator.

The deep pockets and advertising power of the duopoly, Coles and Woolworths, owners of Target, K-Mart and Big W are difficult to counter, neutralise and to beat.

The fundamental lesson: “New” is an imperative in the current marketplace. Where you can't differentiate what you market and sell, then differentiate how you market and sell such.

EXPERIENCES, NOT THINGS

Another noticeable driving force in the current season is the appeal of experiences, in preference to the purchasing of things. This year the scope of “attractive” experiences is broadening.

In the recent past, focus has been tandem parachute jumps and Harley-Davidson motor cycle rides. For 2013, revenue has been strong for tickets to T-20 international cricket matches, One Day International games, Rolling Stones concerts, “Cavalia”, Crown Resort extravaganzas and memberships to the Eagles, Dockers, Wildcats and other elite sporting clubs.

If those are not “new”, they are different. Moreover, they represent good value, regardless of the price tags.

CONCLUDING THOUGHTS

The marketplace, the economy and consumers (as well as clients) are changing. We, in business, need to change, to create and innovate to sustain a competitive edge and relevance.

January 1 is the start of a New Year. It is important that a “new” you rises to meet the morning, and the challenge.

Culture Bonds, Right!

We have been here before!

Culture has a lot to answer for.

In food, it's the very basis for a pathway to health, particularly with yoghurt and the like.

Sporting clubs consumer culture as a key explanation for on-ground and off-ground behaviour – good and bad.

Culture, reflected in behaviour, clothing and events, is a magnet that attracts tourists to many established European, Asian and South American countries.

In the corporate world, culture explains, determines and influences practices and values. It largely determined people “doing the right thing”.

Sub-optimal performances and inconsistent standards are often sheeted home to poor and inappropriate corporate and business cultures.

Positive cultures are the bonding forces that, figuratively, hold entities, nations and families together. Negative cultures and sub-cultures contribute to varying degrees of entropy. That is, the trend and tendency towards a state of disorder.

Sadly, many senior executives and business owners find it difficult, if not impossible, to articulate the essential elements and attributes of their organisations' cultures. That shortcoming is readily reflected in staff behaviour, branding initiatives, advertising, company product and people images (and self-images).

WINDOW ON THE WORLD

Cultures are windows through which the world, and conversely, the entity is perceived and valued.

Cultures are filters that often distort reality.

Written statements like, “we are committed to maintaining the highest customer service standards” can be contradicted and typically stand in stack relief to decisions made to retrench staff, contain costs and to our-source services.

Which is to be believed and responded to... by team members, customers, clients, suppliers and associates?

Corporate cultures enable accurate expressions of company belief systems. Gaps between words and actions create problems.

ROOT CAUSE

Consistent deficiencies and inadequacies in customer service delivery, retailing selling skills and relationship management practices are invariably consequences of, and reflect an inappropriate or poorly deployed corporate culture.

Well-intended training programs usually address the symptoms and not the causes. Little positive outcome is achieved from these activities.

Focusing on processes is misguided. It is the inputs that need to be addressed and redressed.

A definitive statement that exhibits an understanding of the nature and importance of a corporate culture is:

“We do it that way, because that's the way we do things”.

Note that the word and first person “I” has little emphasis in a corporate culture.

FORCED CHOICES

A telling test which identifies the true nature of a culture is when staff members are subjected to a choice between expending company money to provide customer service and hence, deliver customer satisfaction – or to save money.

It is the thought – process of people and their resultant actions, rather than craftily scripted and framed customer service texts that project and define a true corporate culture.

LEARNING EXPERIENCES

Our son David recently shared the details of an unpleasant personal life experience. He was tempted to “point-score” by responding to the disadvantage of another person.

He explained that he took pause, reflected on the Urquhart Clan motto: “ Meane weil , Speak weil, Do weil”, and dismissed the thought as being inappropriate and inconsistent to the values to which he adheres.

You will excuse me for being impressed and proud.

Culture statements that are recognised, comprehended and respected typically out-rank corporate mission and vision statements.

True cultures are character-building and defining.

In essence, cultures are the very expressions of the personality of an entity, a nation, a family and an individual.

A sobering and insightful challenge is to ask team members, clients and customers to express in humanoid characteristics, the personality traits of a business. It results in a better, more comprehensive understanding of self, be it an entity, product, service, group or individual.

CULTURE DISPARITIES

There is much to learn, develop and refine when business advertising, literature, premises, practices and policies are analysed against the datum points of the corporate culture.

Inconsistencies become readily identifiable. Better understandings are gained about poor and inappropriate responses to texts, behaviour, marketing and sales initiatives. Certain perception and image factors can jar.

Casual comments by team members too often cause conflict, annoyance and frustration, resulting in loss of sales, profits and customers. Often the primary cause is a lack of recognition of, respect for and commitment to a clearly defined corporate culture.

Tightening The Reins

Chinese curse or not, we do live in interesting times.

One common phrase, philosophy and set of practices current in business is to “tighten the reins”. With thoroughbred horses this may reasonably be perceived to “nobble” performance levels. So too in business.

Yes, a figurative tightening of all things can mean that risks are reduced, focus is narrowed – often onto cost containment – and greater control is exercised.

Among the additional consequences are a lessening of flexibility, a de-emphasising of creativity and innovation, a loss in recognition of the opportunities which exist, and sensitivity to the need for change.

Introspection can and does lead to enhanced efficiencies. Equally, a loss of an external focus may compromise effectiveness, relevance and competitive advantage.

The dynamics of society, the global economy and marketplaces are such that losing touch and becoming disconnected are real and all-too-often outcomes. Getting in touch with internal operations and micro-managing processes can often be at the expense of recognising, respecting, responding to and capitalising on multi-source inputs and rewarding outputs.

OPPORTUNITY COSTS

The old adage “What gets measured gets done,” retains its currency. So too does acceptance of certain innate biases within companies, typically emanating from the offices of owners and managers, as well as the corridors of power that inevitably lead to the boardroom.

Corporate cultures and philosophies are often moulded, refined and espoused by the leaders. Training, education, life experiences and nature all played a role and influence performance.

However, little consideration is often given to the lost opportunities caused by initiatives and directions like “tightening the reins”.

Quantifying them is often difficult, if not impossible. So too, measures of competitive standing and market positioning.

Notwithstanding those difficulties and initiatives, opportunity costs are borne by entities, large, medium and small in the long, immediate and short-term. It is therefore important that all strategic corporate decisions are founded on well-informed analyses of all available facts. In short, don't be blind to opportunities.

RISK – AVERSE,

OPPORTUNITY DENIED

Much of the fun and many of the rewards in business flow from the vagaries in dealing with people; be they customers, clients, suppliers, associates, competitors, staff members, shareholders or investors. Enjoy the ride!

The mantras of “cash is king”, “lower debt” and “avoid risk” are well and truly articulated in all phases of contemporary society, business and politics. Perhaps it is time to re-introduce certain realities, like:

•  Risk cannot be avoided, just minimised

•  Change is a constant state, not an option

•  Life is a terminal condition.

Truly great, successful and profitable entities expect, encourage, learn from and profit through failures. Their essential common creed is:

Fail often – but in small measures.

BIG, HARD DECISIONS

“Tightening the reins” usually avoids major marketing, often capital-intensive decisions.

Errors of judgements do not occur if decisions and choices are not made.

However, hope, scope, visions and growth are typically not fulfilled when big, hard decisions are suspended.

In short, one should be aware of the consequences and do not close one's mind to options and alternative courses of action.

ALLOW A LITTLE SLACK

Champion thoroughbred horses like Phar Lap, Black Caviar and Sea Biscuit, whether racing in a sprint or staying event, were always allowed a little slack in the reins.

Giving natural leaders there head is, well, natural. They have the right and the expectation to stretch themselves, to aspire, to achieve and to sustain. So too business.

Financial and operational prudence are ill-defined benchmarks. Intuition is a fundamental ingredient and a guiding value. It is also subjective.

A tightening of the corporate reins should be applied judicially, to avoid unnecessary and unintentional constraint.

To do otherwise, will bring down the wrath of the stewards, the Clerk-of-the-Course, or the shareholders and the marketplace, if you will.

KEEP YOUR HEADS DOWN

“In the land of the blind, the one-eyed man is King”. It is a saying which has particularly pertinent at present.

With so many management teams responding to calls to “keep your heads down”, the vision and perspectives are limited. Being constrained to the parameters of the figurative trenches impinges on the prospects for action.

Those who take a calculated risk to stick their heads above the “turrets” may well find a landscape, the marketplace if you will, with countless unfulfilled and non –competitive opportunities.

WHAT IF?

Changes and improvements in performance inevitably flow from changes in attitudes, perceptions and confidence levels. Each of the latter can be materially influenced from objective evaluations of situation analyses.

Therefore, the initial steps to address and to redress the emphasis of “tightening the reins” involve the agenda of all future management, marketing, planning and selling meetings to feature prominently fundamental questions:

•  What if we do...?

•  What if we do something new?

•  What if we do something different?

•  What if we stop doing...?

Long may you reign over hesitancy.

Regroup, Re-Growth

The dawning of a new reality.

There is an increasing awakening among business owners - big, small and micro - that the consequences of the Global Financial Crisis (GFC), the end of the capital expenditure mining boom and the debt dilemmas of Europe have included unintended, undocumented and non defined changes in business cultures, philosophies, policies and practices.

Customer service standards, relationships and instances of referrals have all been adversely affected.

The needs of in company signage, corporate literature and public utterances about commitments to and the pre eminence of customer service, quality, value, change and innovation remain. They stand Stark naked and contradict the daily experiences and perceptions of team members, clients, customers, associates and suppliers.

The ideals persist in the minds of some, but their attainment and maintenance are impeded, filtered and blocked by a seemingly omnipotent preoccupation with cost cutting, retrenchments and operational containment. Ideals are often compromised by marketplace realities. Words are debased by actions.

CONFUSED MESSAGES

Confusion abounds. Contradictions militate against well intended endeavour.

At the same time staff members are encouraged to extend themselves, to reach out to clients and customers to provide service excellence, to ensure accuracy, quality and value. Statements - if not pleas - are made for them to reduce costs, eliminate waste, rationalise inventories and to implement cost - free efficiencies.

Not surprisingly, in many instances morale is down, tensions are up, performance levels are inconsistent and tolerance levels are wafer thin. In short: the rubber band has been stretched to near breaking point.

BODY LANGUAGE SPEAKS VOLUMES

Most conspicuous in many businesses through Australia, New Zealand, Britain, Europe and North America at present is the overt body language of service providers and professionals.

Arguably, the gestures are unrehearsed and unintended, but they do speak volumes to the clients and customers.

The rolling of eyes, the shrugging of shoulders and the figurative dropping of shoulders should perhaps be confined to the underperforming Australian Cricket Test teams. Sadly, the attitudes are toxic and infectious.

Coaches of all codes of high performance sports and business people implore their people to look and to act like professionals.

Verbal slips are like dropped catches, they lose matches. Sales and relationships are literally walking out the door.

MAKE A STATEMENT

There is need for business leaders to assemble their team members to make a statement, to recommit to the corporate vision and ideals, to redefine the goals, the service values and, above all, the beliefs which have, do and that will continue to drive the company, its people and network.

The benefits will flow. Rekindling a sense of pride, positive self image and aspiration will be promptly rewarded.

Reason, not rationalism, should be the fundamental driving force.

Understanding, support, compassion and passion will and does engender cohesion, interpretation and confidence.

Declarations by business leaders and owners about tolerance of prudent risk taking, single shot failures and suboptimal performance will promote a sense of adventure, desire and proactive behaviour. Being in control is often founded on the reassurance of support from higher ranks.

DO SOMETHING DIFFERENT

One business truism is worth repeating:

“Nothing meaningful or better will

happen unless and until you

do something different”.

“Holding the line” will, at best, maintain the status quo. It is an attractive and appropriate proposition for very few entities, business owners, nations and individuals.

“Holding out” is perhaps worse, because one is then dependent on external factors, forces or entities to initiate a change for the better.

“Holding on” begs the question... for how long? It also implies you have encountered the ubiquitous “cliff” and are dangling precariously.

Now is the time to “let go”, not to hold on. The later implies and typically results in consolidation, contraction and solace.

To regroup and to seek regrowth necessitates an unshackling of mindsets, paradigms and the micromanaging of processes.

In many instances spreadsheets should be set aside and emphases on cost savings need to be reprioritised. All people need to figuratively and literally stand up, stretch out and walk about.

Talk, engagement and interactions generate refocus. They stimulate enthusiasm, facilitate recognition and differentiate one from the predictable, inertia, the mundane and lethargic norm.

DON'T COMPROMISE

Tangible and intangible rewards await those who commit to uncompromised customer service excellence, quality, value and consistency.

Investments in time, money, people and resources will doubtless be required. It will involve outlays before benefits, an orientation to outcomes rather than to processes, and most particularly, a bias to longer - term strategies, in preference to shorter - term tactics. Step up now:

Step 1:     Regroup

Step 2:     Refocus

Step 3:     Regrow

Enjoy and profit from the journey.

Differentiate Customers From Consumers

Sales, profits and customer satisfaction leakage are a fundamental current reality. A key important insight in the cause is that too few business owners, managers and service providers are aware of, sensitive to or see the need to differentiate between their customers and their consumers.

The consequences include sub-optimal sales, disenchanted consumers, fractured relationships, a lack of loyalty and isolated instances of previously scarce recommendations and referrals. Often there is a bewilderment and a sense of alienation on both sides of the relationship.

The apparent disconnect between business, service providers and their consumers is widespread. It explains in part the seeming chasm between the perceived service standards provided by companies and the experiences recalled by both customers and consumers.

A recent national Australian study revealed that 82% of business owner and manager respondents stated that the service offered by their businesses was either “good”, “very good” or “exceptional”.

Customers didn't agree. Only 8% nominated one of those three categories in their assessment of service standards in Australia.

UNDERSTANDABLE CONTRADICTIONS

The disparity is understandable. Many relationships in business-to-business circumstances are founded on the contacts between the product or service provider and the Purchasing Manager or Purchasing Officers.

Recent detailed analyses of 250 Australian companies of all sizes and across a wide spectrum of professions and industry sectors revealed that 63% of senior managers confessed to not knowing their customers in a full and any meaningful manner.

Isolating and studying the criteria utilised in the selection of companies, products, services and people enable effective and efficient strategies, tactics and campaigns to be formulated, documented and implemented.

With little or no direct contact between suppliers and operations executives, line managers, operatives and “hands-on” utilisers of products and services it seems reasonable that for the latter to believe customer service is poor or completely lacking. They typically conclude that specific suppliers “don't care” and “don't understand”. In the absence of personal interactions, it is indeed difficult, if not impossible, to convey a sense of caring and understanding. Emotions often influence, determine and overwhelm perceptions.

Clearly, greater effort is needed for all those in business to reach out, connect with and to engage with existing, prospective and past clients.

MULTIPLE CONTACT POINTS

The mobility of the contemporary workforce contributes to the fracturing, termination and fluidity of relationships.

Personal rapport is with the individual, including those who leave the business. Respect and demand for products, services and brands are therefore vulnerable and exposed to rapid dilution.

Dedicated efforts are required to establish, enhance and to sustain multiple, often interactive person -to-person and cross-departmental interactions.

To not to do so can literally see business, revenues, profits and relationships walk out the door as the employees leave positions and the employment with a company.

The loss of momentum and continuity can be, and is, taxing on revenue and necessitates the redeployment of considerable resources (time, money, people and equipment) to address and redress the circumstances.

Business purchase decisions can be, and are often, materially influenced or determined by external consultants. Therefore, ongoing relationships with them are imperative.

Likewise, intimate knowledge of who specifically scripts tender documents accords strategic advantages. Certain, high-profile international IT hardware and software suppliers dedicate some 25% of their workforce to be on secondment to work within client companies, assisting and complementing staff members to outline criteria for major capital and consumerable expenditures. Very smart. Some leaders like to not only know intimately the decision makers but to also be, figuratively, “at the table,” when decisions are being made.

Imagine the inherent power of product and service specifications nominating particular brand names and model serial numbers.

BUSINESS - TO - CONSUMERS

The scenario differs little with relationships involving consumers.

Females, typically the sole or joint heads of the households, fulfil the primary role of customer in up to 70% of instances.

It is she who transacts the purchase. Consumption, enjoyment and satisfaction often lie with other family members. Few direct channels exist to provide direct feedback to suppliers from the latter group.

Yet most importantly, they are the very people who evaluate and nominate specific brands, products, services and outlets. Alas, the unseen power behind the throne.

For example, up to 55% of the criteria applied in the selection and purchase of a “family motor vehicle” are determined by the children. Some younger, and discerning consumers simply won't be seen “dead” in certain brands of motor vehicles.

For the disbelievers, it is well to ask the mothers of three-year old girls about who decided which garment was to be bought – and which colour .

TRANSGENERATIONAL INFLUENCERS

Managing Director of the Grand Cinemas network, Allan Stiles knows well, and closely studies his customers, consumers and spheres of influence.

He is alert to the influence and essential roles played by grandparents and grandchildren. Who have a material impact on the sale of soft drinks, popcorn and chocolate.

Furthermore, the scheduling of screenings take account of these contributors to decisions.

Allan Stiles and his team members are forever vigilant in providing clean, appealing and safe ambiences. Sometimes the core product, the movie, is a secondary consideration or determinant.

NO ONE IS IMMUNE

No entity, private or public, product or service is immune to the ever -changing influences of customers and consumers.

In today's marketplace many businesses are in earnest battles to win the hearts, minds and money of existing, prospective and past clients.

They might need to take note, to learn and profit from a basic tenet of military strategy:,

“KNOW THE ENEMY”... customer, consumer

DIY Advertising.... Tread Carefully

The internet gives access to a seemingly limitless array of applications, information, graphics and capacity.

For the uninitiated, unskilled, naive, but often well-intentioned, it exposes owners, managers and the business to the prospect of mediocrity and, possibly, embarrassing incompetence. Beware unskilled endeavours on-line (and in life generally).

Internally generated images of entities, properties and individuals are often unprofessional and compromised, and responses marginalised.

Evidence abounds in all media and public presences. The poor quality, irrelevance, unappealing presentation and marginal readability of much real estate advertising and promotion are proof-positive of the contention.

Newspaper advertising volumes for the real estate sector are down by as much as 80% in some mass circulation publications. Among the common responses by those in the real estate sector is that the blame lies with the medium, rather than the content.

A close study and analysis of what pages are left for reading by intending home buyers quickly highlight a regression to the 1950s and early 60s: the “selling era” has been reborn.

A bias to Product, Price and Place is occasionally relieved by a focus on Person. Photographs for most real estate agents appear to have been taken on a mobile phone and transmitted direct to the publication. Any consideration of quality appears to have been overwhelmed by an emphasis on cost-saving. False economy indeed.

Would you buy a home from the person featured in such photographs?

Many direct - mail - pieces and hardcopy catalogues for hardware retailers, homeware networks, electrical contractors, plumbers, tradespeople and discount operations suffer from the same deficiencies. Little wonder response rates from direct-response communications have halved during the past five years.

In many sale and discount catalogues the things that are most discounted are the images and brands of the company, the products and the services.

LOW COST, LOW RESPONSE

A large pool of experienced, qualified, creative and innovative advertising professionals, including wordsmiths, graphic designers, media planners and strategists exists throughout Australia. They are largely unrecognised, under-valued, under-utilised and begging for the chance to address challenges and provide effective inputs for clients who value quality.

The costs of such talents are a sensitive issue, one which overwhelms appreciation of the value inherent in such intellectual property.

It is these professionals who appreciate the roles and importance of target-marketed communications, with a strong element of emotion that provides the foundations for establishing, sustaining and enhancing a compelling reason for customers and clients to visit (on-line and in person), to stay longer, to purchase, to revisit, to reconnect and, above all, to become strong brand advocates.

SAVE OR MAKE MONEY

The pervasive, enveloping forces of the current tight and competitive local, national and global economies and marketplaces have, understandably, been instrumental in instilling a sense of need and a strong drive for business owners and managers to undertake actions that save money. Save me, please!

The essence of commerce, enterprise, entrepreneurism and business is to make money, not to save money. The two are, in many respects, divergent mind-sets.

Eliminating risk taking and constantly lowering costs ultimately lead to inertia, regression, entropy and loss.

In a marketplace that is experiencing widespread reductions in communication, (volume and quality), the effect of an ability to stand-out, to make an impact, to resonate and to influence with well-crafted and executed advertising, marketing, merchandising, promotions and selling is immense. But, the full potential will not be realised by DIY (Do It Yourself) advertising in particular.

RESPECT

Overall, greater and more consistent respect needs to be assigned to corporate identification packages, brands, packaging, premises and staff presentations.

Now, more so than for any time in the past decade, disciplined adherence to standards must be invoked and maintained.

Advice, input and feedback from life partners, family members, employees and close associates do not qualify or achieve the status of objective, detailed and professional contributions.

DIFM MARKETPLACE

Significant strategic and structural changes in buying patterns and preference have been conspicuous and influential in European and North American marketplaces. There has been noticeable progression from the DIY (Do It Yourself) market segments in hardware, food and a host of other categories to DIFM. That is, “Do It For Me”.

Consumers are happy to pay for the service, the professionalism and enhanced presentations.

Sadly, Australian businesses have been slow to embrace the service and its opportunities.

In advertising, marketing, merchandising and promotions there is much to be gained by those who have recently lapsed into DIY advertising to evolve, develop and progress to DIFM advertising.

The selection and placement of fonts, wordings, headlines, graphics and the selective use of spacing are an art form.

The innate nuances have multiplying and magnifying impacts on consumers' responses and actions. This is simply an aspect of advertising and marketing that should be left to the professionals. Personal preferences have little relevance.

"Deploying Countervailing Forces"

Countervailing forces create tension, which in turn, establishes the dynamics of change, for better or for worse.

In business the two dominant forces are corporate culture and marketplace demands. Both need to be recognised, respected and managed, if a leader is to achieve and enjoy optimal performance.

CULTURE STRICTURES

Established, conservative entities often have prevailing cultures that demand and expect compliance and conformity. These often serve a self-interest to maintain the status quo.

Many trade and professional associations underperform because of a dominant presence on boards of executives from large, major and established member entities, whose self-interest is served by retention of the prevailing standings. Sadly, that can and often does lead to inertia. The question arises, “whose interests do we in business seek to serve?” Beware vested interests!

Little wonder that many companies, products and services have lost touch with market-force demands, expectations, needs and wants.

At all times and with each corporate culture an external focus is imperative. Such orientation will ensure relevance, currency, competitive advantage, benefits and above all, persistence.

DEPENDENT INDEPENDENCE

Conversely, co-operatives, buying groups and marketing networks suffer strategically and tactically because too many of those in their respective supply chains have little regard, respect for or appreciation of the innate value of a good brand. In such instances, the key issues are a lack of discipline, structure and endorsement of standards. Independence is a virtue for one, but not for an intended integrated collection.

In many instances, a prime casual factor for a lack of the essential characteristics of adherence and discipline are poor or an absence of appropriately applied recruitment and induction procedures. Managing expectations should be applied to those within the network, as well as among customers and clients.

Ownership and membership involve rights and obligations. Single-dimension rewards such as lower bulk-buying purchase prices are typically short-term, can be and are readily countered by competitors and are counterproductive in the pursuit of cohesion, integration and tolerance.

A state of corporate entropy soon follows. That is, - inevitable and steady deterioration: all things go to a state of disorder, in a word, disintegration. Look around, evidence of such abounds. Companies are folding, brands are disappearing and associations are merging.

MARKET FORCES

The market appeal of change, and innovation demands that businesses and associations invoke, promote, celebrate and reward a spirit centred on dynamic adherence to polices and discipline.

That involves risk, a tolerance for failure and the need for resilience to adapt, adopt and to enhance as an integrated, cohesive force.

Marketers applaud this approach, espousing the belief that consumer and client dictates determine the appropriate, and often changing set of rules and success-rate determinants. Their convictions are founded on the contention that “those who write the rules, determine the appropriateness and relevance, and are rewarded accordingly.” Consumers and clients accord such rewards in the form of increased revenue.

THE SCENARIO

True leadership is not a simple art. It involves compromise, often sub-optimal choices (typically in the short-term), the acceptance and tolerance of risk, failure and the ongoing need for change, innovation and creativity.

Time, money, resources and effort are needed to be invested to educate, inform, enthuse and ensure adherence to policies and philosophies by those within the supply chain and to foster appreciation by those whose needs and wants are intended to be fulfilled and satisfied.

All business environments exist in a field-force of countervailing forces. Care must be taken to review, analyse and, if necessary, refine the following elements:

•  Corporate Culture

•  Corporate Driving Force

•  Marketplace demands and expectations

Achieving a balance between those forces is the mark of a good leader.

EFFICIENCY IS NOT ENOUGH

The principle and practices of the “Six Sigma” concept seek to eliminate variation, errors and waste in production processes. Costs are minimised; efficiency and productivity, within a set framework and template, are achieved, optimised and maintained.

Efficiency is a cornerstone respected by seemingly all adherents and advocates of Six Sigma.

Effectiveness is quite another dimension, because change and dynamism are not necessarily totally compatible concepts to that with Six Sigma.

Therefore, the countervailing forces of the production, auditing, cost control, marketing, merchandising, advertising and promotional need to be managed and, to the extent possible, balanced.

FIRST STEPS FIRST

The initial phases for a company, product or service to reassert itself in the marketplace often is founded on a review, refinement and enhancement of corporate cultures, company driving forces and the ability to identify, analyse, service, fulfil and satisfy the ever-changing needs of consumers, all within the parameters of a disciplined, integrated and cohesive network and supply chain.

In-store, On-line, By-mobile

Business evolution is fast becoming revolution.

All cycles - product, strategy and campaign - are being concertinaed by a staple diet of creativity and innovation.

The full and true measure of opportunity is being shortened. It is not yet a case of “the quick and the dead”, but it's getting there.

Casual visits to stores, complemented by the traditional of window shopping have given way to on-line visits – before the buying cycle has advanced beyond the early phases.

Look around. One readily identifies the trappings and consequences of further advances. A total of 23 million Australians own and operate some 25 million mobile phones, of which 14 million are classified as smart-phones.

The world is now fast going off-line, making obsolete personal computers, the internet and, yes, tablets.

A mobile world has arrived and with it new opportunities, as well as inevitable failures for those entities that are not restructuring and revolutionising their processes, practices and philosophies.

apply yourself

Three increasingly popular and utilised smart-phone applications are making huge impacts and are changing local, national and the global business landscapes.

QR CODING

Quick response coding is expediting the retrieval of information and the processing of transactions. There is less need for service providers with extensive product knowledge. All the information is readily available to the consumer via their smart-phone.

Processing of credit card transactions can be finalised without the necessity of signing, verification of signatures and confirmation of 3 and 4-digit codes numbers.

That is convenient and appealing.

URL

Uniform Response Locators is an application which enables the intending purchaser to collate data about the availability of nominated and preferred products, the prevailing prices and the location of competitor premises instantly (within defined geographic parameters), all from within the first business visited.

It puts a whole new complexion and timeframe to the concept of comparison shopping.

Those businesses that aren't “wired” to and for the application are literally not in the race, or on the shopping list.

NFC

Near Field Communication enables retailers, manufacturers, distributors and consumers to interact and become actively engaged with prospective purchasers.

A walk down a supermarket aisle with a wired shopping trolley can generate a mine of information about displayed merchandise, special offers and joint promotions. The application informs, influences and directs consumers, empowering them with information, choice and seemingly limitless authority to buy or to ignore.

The one common dominant characteristic is mobility and the means is a hand-held piece of mobile telecommunication hardware.

FROM PASSIVE TO ENGAGING

One striking feature of the contemporary “mobile” economy and marketplace is the innate need for and advantages to engage with existing, prospective and past clients.

Some business leaders and innovators have been quick to embrace the principle of “joining the conversation”.

Reliance on passive mass-media-based advertising campaigns that are centred on discrete 30 and 60-second radio and television placements or in set-sized print and outdoor advertisements is waning. The consequences are evident in the stock-market values of traditional mass-media companies.

Previous “rivers of gold” revenue streams, particularly enjoyed by newspapers, in real estate, homebuilding, land development, motor vehicle sales and employment have migrated to on-line channels and are fast evolving to mobile application sources.

The content, context and style of communications are under constant review and refinement. New has become news – with strong underpinnings of value, worth and relevance.

FROM SCARCE TO PLENTIFUL

An integral aspect of the transition to the current “mobile” economy and marketplace is the obsolescence of the “dark art” of traditional economics.

The discipline of economics was founded on the allocation of scarce resources. That belief and the consequential economics business model are understandable, given their genesis during the mercantile era of centuries past.

Mercantilists dealt with the exchange and trading of “things”. In essence, if one had a “thing”, then by definition another didn't. The need or the want for such determined its monetary value. Economics assigned relative values and priorities for the determination of what resources would be allocated for the extraction, manufacture, development or growth of differing commodities (typically, things).

In the current “mobile” economies and marketplaces entities, consumers and governments have to contend with abundance, a seemingly endless supply of information, channels, sources and audiences.

Access to such is often just a click away. For many this is a daunting reality. For others it offers choice, power and influence. Arise, the informed, discerning, price sensitive and demanding consumers. These are individuals and subgroups who are not economical in the use of those options available to them.

Multichannel and omni-channel are phrases and concepts that are and will be essentials for competitiveness, relevance and to be capable of managing and fulfilling customer expectation.

Care must be taken to ensure that the focus is not on the process, but rather on its application. Success will be enjoyed by those who respect the need to be effective and efficient in which “How”, not “What” is applied to realise the apparent boundless scope for growth and development.

THE BIG CHALLENGE

Many of the global on-line leaders, including Facebook, have found it difficult to generate income and profits from the migration to mobile.

That is a storyline common to many local businesses which have recognised and then embraced the changing trends. Many have become bemused and frustrated by the marginal quantifiable returns.

Therein lies the big challenge. Adroit strategies, judicially applied and maintained will be rewarded and competitive advantages enjoyed. One fundamental will be the need to build effective bridges between in-store, on-line and by-mobile.

Selling Era Returns

Regression. It is a chilling thought for business leaders and marketers. More disturbing is that for many businesses it is, seemingly a current reality.

Individual, sector and collective advertising have regressed, gone backwards to pre-1962 style advertising.

A review of much current advertising highlights a preponderance of product/price/place cataloguing in national, state, metropolitan and local newspapers, together with the copy of direct-mail pieces, along with the focus of television, radio and online communications. There is scant or no evidence of projecting the promises, advantages and benefits of value.

Little wonder business owners and managers report limited and spasmodic responses to advertising (regardless of the media utilised), heightened price sensitivity and a decided lack of consumer loyalty, repeat and referral business. These are natural consequences of communication which lacks emotion, positioning, brand imaging and, above all, consumer and broader market education.

“Price catalogue” advertising and merchandising presumes consumers/readers/ viewers/listeners are aware of brand attributes, are informed about features and points of difference, have determined value and are now simply seeking to conclude a purchase decision based on the best available price. That is a reasonable presumption for not more than 20% of customers for a broad sweep of products and services.

The primary concern for marketing analysts and strategists should correspond with that of all business owners, managers, sales and service professionals. The core focus should be on the 80%+ of prospective customers and consumers who could be, and will greatly value being educated, marketed and sold to, so that they can conclude informed discerning and value-based decisions.

Sadly, too many jewellery, hardware, fashion accessories, cosmetics and other discretionary product categories are being “sold” on price discounting.

Bold price-centric “Sale” advertising copy replies on the economic rationality of consumers, in an era in which established business models have been replaced, and which is driven and influenced by sentiment.

Calls for significant 0.5% and 1% reductions in official interest rates by retailers, home builders, real estate agents and property developers are, perhaps, understandable, but misplaced.

Lower interest rates will not stimulate widespread improvements in consumer and public confidence. A lack of confidence is not the major impediment or “head wind” that is inhibiting demand and sales.

Consumers have changed. By and large, they are not afflicted by a lack of confidence. Most individuals, couples, families and corporate executives and boards of directors have embraced and are adhering to a strong measure of financial prudence.

In short, they can spend, but are not doing so because they feel the “rewards” from saving exceed those enjoyed by spending at this time.

A large percentage of the full-and multi-page price-centric newspaper advertising is not recognising, addressing or redressing the new marketplace frame-of-reference.

WHO'S TO BLAME?

During a recent interview on Perth radio station 6PR, host Paul Entwistle stated that he had withdrawn from his university studies in marketing because his lecturers exhibited a consistent over emphasis on price-based marketing.

He earnestly believed that he was being subjected to lectures on sales, not marketing and that there was a better and more profitable way to do business.

It was a sobering wake-up call from an astute, 30-something media commentator.

Perhaps a new product-oriented selling era has evolved. To Paul, it had all the hallmarks of regression, and with it all the downsides of extreme price sensitivity, lack of loyalty and widespread ignorance and indifference about the innate value of recognised, trusted brand names.

IN-TOUCH MARKETING

The companies, products, services and applications that are enjoying local, regional, national and global success have common philosophies, attributes and marketing strategies. Apple, Twitter, Microsoft and Nike respect and utilise their recognised and trusted brand names, with an emphasis on product and service development, enhancement and support.

For these entities, innovation and creativity are not aspirational goals. They are realities and imperatives - core values. Discounting, sales and price offers seem incompatible and inconsistent with their respective and collective market presence.

There is a certain “feel-good” factor in deciding to buy, own and operate those brands. The measure is subjective and the outcomes are value and customer satisfaction.

POST-WAR BABY BOOMERS

There is nothing post about the “baby-boomer” generation.

Those born during 1945 – 1962 experienced and were an integral part of the birth of marketing and the consumer era.

The first school of marketing in the world was established at Harvard in 1947. Birth rights were assigned to the “Consumer Era” in 1962, as the first of baby boomers reached 17 years of age, left school, secured employment and began consuming in earnest.

The emphasis on product features was subsumed by brand names, images, fun, freedom, choice and emotion, Carnaby Street, Jane Asher, Twiggy, The Beatles and projected images, to which the new consumer era purchasers wanted to relate.

Many younger generation X, Y and Z members relate to, enjoy and are influenced by the music, lifestyle pursuits and images of the marketing era.

CHANGING DIRECTION

The calendar year 2013 is a tipping point, during which there will be a change of direction by those seeking success. They will discard regression, embrace progression and become involved in the procession of emotions, marketing and value.

Arm Yourself, For The Battle For The Mind

Social media, and the internet in general, are largely “blind” media.

They can be frustrating, time-wasting and inefficient.

Entries and enquires about wide-ranging but pertinent topics, products and services elicit countless responses, most of which are irrelevant and unappealing. Information overload abounds.

Use of SEO's (Search Engine Optimisers) simply cluster companies, brand and service names, among large, often spuriously ranked groupings.

Being on the shopping list has very little quantifiable and lasting value. Nor does the standing of being “first amongst equals”.

Establishing and sustaining unique, differentiated presences in the marketplace is difficult.

In the brave and new world of digital, mobile, on-line, multi or omni-channel reality, the importance, nature and value of effective branding is deepened and broadened.

PROMOTE BRAND NAMES

Investments in brand names have strategic and tactical implications.

Recognisable, well defined and promoted brand names, that have a consistent and conspicuous presence, enjoy almost unassailable competitive advantage.

Traditional mass media channels are fracturing. Forced choices between channels and brands are redundant options. Integrated multi-channel (or omni-channel) communications are imperative, because it is difficult to select a single medium and to analyse its effectiveness among targeted audiences.

Interestingly, the most effective, most profiled and most heavily used social media are brand names which have entered the general public lexicons and been transformed from nouns to verbs. Think, Google, Twitter and Facebook, each of which now implies actions being taken by followers and users of the respective social media brands.

Moreover, these social media icons have been their own promotional product platforms.

BATTLE FOR THE MIND

Since its creation in 1969, by advertising and marketing leaders Jack Trout and Al Ries, the concept of “Product and Marketing Positioning” has been the foundation of all great advertising, marketing, merchandising, promotional and selling strategies and campaigns.

Astute business leaders and product managers were quick to learn that the battles for market share, revenue, profits and competitive advantage were not being fought in the streets, the marketplace or economy, but rather, in the minds of consumers and clients.

The mind is a dark void, free of the external visual, aroma, touch and spatial stimuli.

Visual merchandising professionals often refer to “scotomas”, that is, “store blindness”. Consumers simply do not see, perceive or respond to product displays, signage and attractive visual presentations.

The innate nature of on-line and social media is brand blindness. For those who overcome these barriers, filters or distortions, better times and competitive advantages await.

Positioning and reinforcing the brand name in the mind of the customers and clients through effective use of promotional products is fundamental.

In many instances the mind is uni-dimensional. That is, it brings to attention one brand... the first brand... the brand that wins the battle for the mind.

ON-LINE ENHANCEMENT

The widespread disillusionment among business leaders about the lack or spasmodic return from investments in on-line and social media is best addressed and redressed by effective cross-media promotions, that heavily accent brand name promotion.

At the forefront are, or should be, promotional products in their many guises and applications.

On-line, and in business life, it is better to be first than it is to be better. Those who are first (in the minds of existing, prospective and past customers and clients) do not have to contemplate being better. In marketing, first is an absolute. The first company, product, service or person is recognised and often accepted as the universe. There are no comparative measures.

SHARE OF MIND

The long-held adage in advertising of “share of mind equals share of market” is a truism which should be pillar for promotional products.

In short, all business people need to recognise, respect and adhere to the principle of getting there first and staying there. One effective means to that ideal is promotional products.

CONCLUSION – NO CONFUSION

To achieve “cut-through” in marketing and advertising it is important to avoid clutter and distractions.

Promotion products, by their very nature, are focussed, specific and brand oriented.

Accordingly, they are an important, pre-emptive and complementary component to an effective integrated and disciplined multi-channel mass media campaign.

So go on, do your job. Go out and promote that which works well in the contemporary market place... brand names and promotion products.

Reach Out, Connect, Engage

Omni-channel and multi-channel are in-vogue phrases and concepts. They reflect the presence and need for parallel and compatible avenues to reach out, connect with and to engage existing and prospective clients and customers.

TWO-SECOND ATTENTION GRABBING

Consumers and corporate executives are increasingly scanning media sources, with little inclination to undertake detailed study and comprehension of the wealth of available information.

Therefore, the challenge for all communicators is to grab and arrest the attention of targeted audiences within a 2-second time span. That equates to a maximum of four words.

In short, think and develop skills in creating and enunciating headlines. The trends evident in the transition of newspapers from broadsheets to tabloids should be applied by all businesses. Single-word headlines can be effective in projecting statements and challenges, while also injecting emotions in many topics.

Short, pithy newspaper, catalogue and outdoor advertising headlines are effective means to generate increased contact with on-line channels, which provide detailed and comprehensive information and intelligence to progress and expedite the purchasing process.

TALK IS CHEAP

Much is made of the personal and intimate nature of on-line and social media interactions.

It is a characteristic and skill found wanting in many communication strategies. Engaging people, customers and clients on-line involves personal, individual and real-time interactivity.

There is nothing more customer-centric than having the individual believe that he or she is the centre of their own unique universe.

Interestingly, the aspects of personal contact and intimacy are elevated when cross-channelling strategies lead to verbal communication. The spoken word has the added attribute of nuances and emotions which are readily registered and valued by consumers and prospective customers.

Talk is cheap, but wages are high... an understandable and predictable sentiment. However, when measures are applied to sales conversion, effectiveness, efficiency and productivity, talking directly and personally to a customer is value.

BE ACTIVE, NOT PASSIVE

Out-bound, unsolicited telephone calls are widely tainted with negative stigma. Inertia-selling techniques elicit defensive and negative stereotypical images.

Recent marketing study findings reveal that some 98% of company-initiated telemarketing calls are rejected or declined in the first instance.

The single biggest reason for the lack of success of such calls is “the time is not, or was not right”. Numerically, it is double the percentage assigned to having no interest in or demand for the product or service on offer.

Significantly, 83% of survey respondents stated that no attempt had been made by telemarketers to schedule a follow-up call. Alas, opportunities lost.

A distinctively different set of responses arises when consumers who initiate contact on-line are invited to receive an immediate return telephone call by landline or mobile. This is particularly the case when considerable emotion, subjectivity or information analysis are involved in the purchase decision.

Buying commoditised, price-sensitive products and services involves a very different set of dynamics. In such circumstances on-line communication alone will often suffice.

VERTICAL CHANNELS TOO

Omni-channel and multi-channelling is not limited to lateral relationships. It should also involve vertical channelling. An example is the relationship between the interest and demand which is stimulated and generated by mass-media placements and the closing of the buying process by disciplined, well-informed and appropriate selling by point-of-purchase service providers.

Huge percentages and dollar values are forsaken and lost because front-line staff members are not aware of the conduct or the specifics of marketing, advertising, promotional and merchandising campaigns. Compounding the issue is that management does not involve staff members in the campaign launches and schedules, with particular attention to formulating, documenting and implementing particular sales strategies, to optimise sales and profits.

TEMPTING TECHNOLOGIES

The introduction and application of divergent technology in the interactions with customers foster disconnection and a lack of engagement between consumers and service providers who are the essential brand ambassadors and image builders of companies, products and services.

It is now possible for consumers to visit supermarkets, walk the countless aisles, make product selections, pay for the purchases and leave the premises having had no interaction with supermarket employees.

Fading brand loyalty will become an increasingly conspicuous phenomenon in the near term.

CONCLUDING COMMENTS:

Omni-channel and multi-channel is now a non-negotiable reality. The concepts applied must be vertical and horizontal for the full potential to be realised.

From Unknown To - Understood

Economic boom times accommodate, tolerate and facilitate large measures of inefficiency and ineffectiveness.

Inherent in many past mass marketing strategies and initiatives were varying percentages of poorly targeted communications. Wastage factors were typically sizeable, but arguably affordable because of the sheer volume of business potential. Some customers simply fell in the cracks and felt that way, with little recognition of their plights, disappointments and unrecognised and unfulfilled needs, wants and aspirations. Little wonder that customer loyalty was mostly read about in marketing and sales publications, rather than being experienced and enjoyed in business relationships.

Since the onset of the Global Financial Crisis, many management teams have necessarily reviewed, refined and enhanced many aspects of business operations and processes. Understandably, budgets have been reined in. Communications have become better and tighter focused. Wastage and leakage factors and costs have been identified and are being progressively eliminated.

Among the more notable and costly inefficiencies of the past were generalised advertising, marketing, promotional, merchandising and selling initiatives. Customisation was applied occasionally, if not sparingly, because of a lack of substantive information on primary, secondary and tertiary target audiences.

ON-LINE, ON-SONG

Being on-line and connected has established a whole new world of expectations, demands and disappointments among consumers.

Pre-GFC, mass media campaigns were typically generalised and lacked strong measures of productivity, particularly in social media. The bold, general headlines were and remain, for many consumers, turn-off factors in cyberspace.

For businesses, effective emails, texts, Twitter, Facebook and YouTube exchanges need to be personable, intimate and respectful.

Purchase agendas are not determined or set by the corporate communicators. The potential or actual consuming communicatees are most responsive to positive information, intelligence and personal experiences or commendations.

The self-belief that one is unique, different and discerning is alive and well on-line and on the streets. Communication styles need to reflect those attributes and ideals.

MISS UNDERSTOOD

Many women are justified in being “miffed” about being ignored, not recognised or being misunderstood. Their roles, importance and influence in stimulating purchases and expediting the various stages of the buying cycle were and still are often over-looked, not studied, analysed, respected or addressed.

Lagging demand and poor sales volume can be explained, in part, because of the lack of sensitivity and responsiveness by marketers and management teams to the unique and divergent perceptions, preferences and dictates of female consumers. For example, some 72% of the decisions for families to contemplate and decide on the purchase of a new residence are initiated by the female head of the household.

There are a discrete number of “hot-buttons” which “turn on” the purchase drive of these key customers and consumers. Sadly, detailed analysis of the advertising, literature and promotional literature of new home builders, real estate agencies and property developers readily identifies glaring deficiencies, inadequacies and inappropriate texts. The target audiences appear to be unknown or misunderstood.

Motor vehicle dealers, networks and manufacturers exhibit the same insensitivities and suffer losses of potential sales as a consequence.

Retailers at large could profit appreciably by connecting with and being focused on the mind-sets, perception parameters, and purchase paradigms of female consumers. This includes hardware stores, some of which are conspicuously “macho-male” in advertising style, store presentations and sales staff employment practices.

THE NEXT STEP

The era of generalisation and broadcasting is waning, if it has not already elapsed.

Narrowcasting is an imperative, or put another way, mass customisation is in vogue.

Individualised, personalised and direct communication minimises wastage, shrinkage and leakage. Efficiency, effectiveness, productivity and velocity are optimised when investments are made into the researching, understanding and servicing of discrete sub-groupings and individualisation.

A mutual sense of understanding fosters confidence, peace-of-mind and assurance, which, individually and collectively, generate urgency, demand and optimal performance.

We should all know intimately and in detail our products, our markets and the economy. However, that is not enough. The needs exist for all entities to truly know, understand, value, to reach out, connect with and engage each and every targeted customer, consumer and client.

The journey typically starts with the unknown and unknowns, ultimately progressing to the understood... that is when you, your business, products, services and people will have arrived.

Sentiments Rule, OK

Economists are seldom right.

It is a recurring theme and reality. Put simply, economics is not an exact science.

There are too many variables for one to be definitive on any one issue or projection. Moreover, there is little scope for or recognition of the importance and nature of human perceptions and sentiments in economic equations.

For example, take the recent public statement by the Governor of the Reserve Bank of Australia, who has a doctorate in economics no less, when he pleaded with Australians to dispel their “gloom and doom” and to accept that nationally the “glass is half-full, not half-empty”.

Wrong! In reality there are two glasses. One is overflowing and the other is half-empty.

However, the physical reality of an overflowing cup is being tempered by the prevailing, pervading and apprehensive consumer sentiments. It is a classic case of the consuming public's perceptions becoming the economists' reality, if not nightmare. They just don't add up.

Long established, supposedly immutable economic principles need to be set aside. Consumers, like economists, need to be re-educated. The appropriate steps are recognised, sequential, basic and effective.

An overwhelming majority of consumers are now aware, alert, discerning and constantly exposed to multiple news sources and headlines which highlight the challenges being confronted by Greece, Spain, the Eurozone, the United States of America, as well as the Australian retail, tourism and construction sectors.

The “hard” news of the mass media, which centres on facts, statistics and other “concrete” aspects of news, holds little appeal to consumers at large. Those that do bear relevance and influence are largely negative in nature and character.

Whilst a significant percentage of people may be innumerate and financially incompetent they do tend to have an intuitive feel about things “that do not add-up”.

Therefore, consumer sentiments must necessarily be recognised, accepted and respected as a filter through which most, if not all communication is received and processed.

INEFFECTIVE ADVERTISING

Countless businesses around the world are reporting marginal responses to advertising campaigns, notwithstanding unprecedented discounts and offers.

Some have questioned the creativity of the advertising messages. Others have doubted the effectiveness of the various media channels. Both are justified, but for reasons related to the use of creativity and of the respective media, rather than to those two factors in isolation.

Few, it seems, have recognised the role and importance of consumers' sentiments.

There are 3 generally widespread realities in the marketplace. The first two explain, in part, the reasons why consumer demand and reactions are so sparse. They are:

•  Consumers are not listening

•  Consumers are not responding

Individually and collectively these two considerations define the challenge and the specifics of a brief which needs to address the need to “meet the market realities”.

Little wonder, those advertising campaigns which spruik, or better put, scream “save, save, save” or “sale, sale, sale” are ineffective.

A reorientation of focus from product, price and promotion to consumers, individuals and sentiments will generate interest, urgency and demand.

No consumer segment is immune to this spreading virus of disconnect. Most advertising is dismissed as just “noise”. A recent major study revealed that brand recall in the past 2 years has declined from 27% to 15%. Good marketing communication evokes emotional responses by projecting images or the promise of positive experience. Look no further than the communications of the brand Coca-Cola for a great example.

Case studies of consumer inertia and disinterest abound in electrical appliances, housing, real estate, financial planning and the same circumstances exist in numerous business-to-business scenarios.

A better and detailed understanding of prevailing consumer/corporate sentiments will be an effective first step in generating sales.

Repackaging the headline, the message, the offer and the very sentiment of the ‘advertising' is needed.

Significantly, for those entities which embrace these principles and address the challenges, enhanced performance standards are in the offing, regardless of overall volume of a sector or region. Redirection of existing demand is readily achievable.

FIRST THINGS FIRST

For most things in life there is a logical sequence. For marketers at present a new adage has evolved.

“Open the consumers' minds

Before you open their pockets”

This may and probably will involve the re-education, refocus, reassurance and reaffirmation. In short, the mind needs to be settled before the deal is settled.

Attention and priority needs to settle on the prospective, existing and past clients rather than the antiquated sales philosophy of the price, place and promotion.

It's All In The Mix

A magical two word business solution.

The suggestion may appear to be simplistic. However, the current malaise of the overall retail sector, as well as that being experienced by individual shopping centres, precincts and communities will to some considerable extent be addressed and redressed by a prime focus on a fundamental marketing imperative... that is, a good tenancy mix .

It should be an immutable rule for all lessors and property owners. A balanced, attractive tenancy mix which satisfies a full spectrum of consumer needs, wants and aspirations is an effective magnet which generates customer traffic. Thus, it is and must be Sine Qua Non.

Moreover, range, selection and choice hold the interest and attention of consumers who are inclined to visit more often, stay longer and increase purchase amounts. That is a sweet mix of optimising share of market and share of wallet. A compelling and profitable thought and reality. Never forget, an appropriate tenancy contributes to a great customer experience. That will result in high customer retentions.

The same principle can be extended beyond the bounds of the retail sector. Every business needs to ensure it offers a balanced, attractive product/service mix.

Qantas provides a striking case study on the consequences of a poor, limited product/services mix.

Two decades ago the airline enjoyed 42% market share of the inbound and outbound Australian International travel business. Today, that figure has shrunk to just 18%, with a continuing downward trend.

The causal factors are many and varied, not the least of which is the destination offerings. Throughout Europe Qantas has two destinations, London and Frankfurt, Germany. That pales into insignificance when companied to the 30 plus European cities serviced by Singapore, Cathay Pacific and Emirates airlines. Lesson learnt. Point made.

The same principles apply to pharmacists, veterinary surgeons, advertising consultants, engineers and real estate agents.

KEY PERFORMANCE

Therefore, achieving, sustaining and enhancing a balanced, attractive tenancy mix and product/service range is and should be a primary Key Performance Indicator (KPI). Some will contend that is a matter of “going back to the basics”. Astute business people, property owners, lessors and analysts will understandably question why there was ever a departure from the basics.

A GOLDEN RULE

Retail yields, internal rates of return and other financial measures should, ideally, be secondary criteria. Moreover, they should also be dependent on first achieving and sustaining a balanced, attractive tenancy mix.

Sacrificing a small percentage of yield in the current marketplace to ensure the maintenance of a sound tenancy mix is logical, establishes the foundations for stability and for sustainable growth and is a wise investment decision.

MAXIMISE OR OPTIMISE

The seeming conflicting between the goals of maximising rental receipts and yields against that of a balanced, attractive tenancy mix raises the perennial question, “is it best to maximise or to optimise?”

Evidence abounds in recent times of a widespread pursuit of maximising rentals (often measured in terms of dollars per square metre per annum). The criterium is applied to shopping centres and precincts with liberal abundance, reflected in the typical oversupply of jewellery stores, coffee lounges and phone retailers and casual leasing tenancies. Income is usually maximised in the short-term.

In the intermediate to longer-term such complexes and locations become boring, narrow in scope of their offerings and appeal, and progressively lose customers. Therefore, maximised rental income can be and often is a false economy and goal, with profound, negative longer-term affects. The income of the lessor or property owner and the buoyancy of trading conditions inevitably declines and under-perform over time.

SAGE ADVICE

Ross Duffield is a well established, successful Western Australian businessman, retailer and shopping centre lessor.

He owns the 21 store Perth metropolitan area Carine Glades Shopping Centre, which is anchored by an independent IGA Supermarket. The centre consistently attracts more than 42,000 customers per week. A number of the lessees enjoy annual seven figure gross profits. Understandably, the retailers are happy. They are also respected and valued by Ross and his company.

The pillars of success which are applied by Ross include:

•  A good tenancy mix is imperative. It is why customers visit the centre.

 

•  Beyond a good tenancy mix, it is important to seek out and secure the very best targeted retailers one can get.

 

•  Establish a justifiable rental structure, which is fair and equitable to all concerned. Retailers must be allowed to profit from their expertise.

 

•  Be severe, set standards and never compromise. Fantastic, that is discipline.

 

•  Ignore inappropriate retailers and retailing businesses who are prepared to pay excessive rents. Stay focussed on a balanced tenancy mix.

 

•  At all times be open to and aware of changing consumer needs and opportunities. In short, stay relevant.

PERFORMANCE REWARDS

There is much to commend the proposition for a detailed review and refinement of the procedures which determine the remuneration of executives, in particular those in retail property sector.

Maximising rental receipts by having a tenancy mix which features 11 jewellery stores, 8 gift retail outlets and 7 coffee lounges could arguably be appropriate for incurring executive income penalties, not bonuses.

In the final analysis, there is only one arbiter of the degree to which a business is “customer-focussed”. That is the customer. Very few consumers, if any at all, will applaud extreme duplication of business types in a mall, streetscape or locality. Moreover, no research has ever revealed increased customer satisfaction based on high rental income. Measuring a balanced, attractive tenancy-mix is difficult, bordering on impossible. The criteria applied by consumers are subjective, emotive and variable. A reasoned person may contend that a fair and equitable quantifiable variable is consumer traffic counts.

Now that is a refreshing perspective and one that should be put in the mix.

Managing Expectations

Every prospective and existing customer and client arrives at the premises, on the telephone or on-line with expectations. These can be and are influenced, or indeed often determined in part or in whole, by past experiences, word-of-mouth references, advertising, website designs, literature, premises presentations, image, reputations and the attitudes of staff members.

Achieving and sustaining satisfaction are functions of the consistency and continuity of the service provided. This can involve numerous people, departments and sections which contribute to the experiences encountered and, hopefully, enjoyed by the customers and clients.

Among the consistently best service providing entities are those that embrace the “horizontal organisation” philosophy. In essence, the traditional pyramid organisation structure is turned on its side, and hierarchy or seniority have no consideration with individuals accepting and embracing responsibility and authority for ensuring customer satisfaction by managing their expectations. Everyone is a nominal manager.

No gaps are tolerated in service provision, authority, responsibility or communications. Reception, sales, service, production, logistics, credit and support people recognise, accept, embrace, endorse and celebrate their respective central and integral roles as team members charged with managing customer expectations.

Care is taken to ensure that all relevant people who contribute to managing the expectations are advised in timely and appropriate ways of their roles and of the commitments given to customers.

Those expectations can and do include personal presentation, the standards applied to cleanliness, accuracy, timelines and the attitudes of team members.

It is well to remember that the first person to interact with the expectant customer is seldom the last person in the organisation to do so. The expectations remain the same.

EXPECTATIONS CHALLENGE

The overriding challenge for team members in pursuit of consistently meeting clients and customers' expectations is to engage, commit and to develop sustainable mutually rewarding relationships. Each is largely founded on attitudes.

FACE THE FACTS

Fundamental to recognising, responding to and fulfilling expectations are the unimpeachable virtues of truth, facts, realism, information sharing and empowering clients and customers with attractive and viable choices.

“Get the deal or contract on any basis” is now a redundant philosophy. It's okay to say no, or to reset unreasonable and unachievable deadlines and benchmarks for delivery, price and service standards.

Above all else it is logical, acceptable and to be applauded for one to make a profit.

Being open, transparent and honest is greatly valued by customers. It meets their expectations. Most expect nothing less.

ANALYSE THE PLAYING FIELD

Many aspects and factors can and do contribute to the fulfilment and to the failure of meeting expectations.

Each service provider, team, section or department needs to recognise that they are, at one time or another, the axis or axle in a dynamic rotating wheel of service delivery.

The spokes of that wheel are:

•  Culture

•  Structure

•  Geography

•  Sequential flow

•  Authority levels

•  Accountability

•  Responsiveness

•  Product knowledge

Individually and collectively they need to be strong, consistent and complete. Otherwise the ride can be exceedingly bumpy, costly and involve considerable maintenance and remedial costs.

COMMUNICATION LOOP

Not unsurprising is the reality that inadequacies in and among the communication channels, vehicles and communicators cause the greatest and most recurring deficiencies in meeting expectations.

We need to enhance our communication skills, better use all available channels and be forever conscious of the need to avoid presumptions when dealing with customers. A lack of comprehension on the part of either party to a communication exchange creates filters, barriers, impediments and causes confusion, annoyance, frustration, misunderstanding and results in expectations not being understood or satisfied.

COSTLY CONSEQUENCES

The consequences of not fulfilling expectations can be quantified in terms of:

•  Productivity losses

•  Income sub-optimisation

•  Client satisfaction shortfalls

•  Relationship fractures

•  Lack of loyalty

•  Absences of referrals

•  Impaired company images

Each can be and often is a heavy burden, whose presence is reflected on the bottom line... You can bank on it.

Here is a sobering reality check. In dealings with external clients and customers one error, delay or fault typically has a cascading impact on between 5 and 7 people associated with or dependent upon that single direct client. Take pause. It is not difficult or very taxing to recognise and visualise that interdependent chain of relationships.

THE NEXT STEP TO FULFILLING EXPECTATIONS

Asking questions of customers, clients and internal associate service providers is empowering, satisfying and reaffirming.

It is the initial step to ensure that everyone knows and cares about what is expected of the company, the product, the service, the team and the individual.

Four simple direct questions provide clarity.

•  Do you know what I have committed us to?

•  Do you understand what is expected of you?

•  Do you comprehend the priorities and timelines?

•  Are there any reasons we can't fulfil the expectations?

From there it is simply a matter of confirming the outcomes, following through, following up and celebrating the attainment and fulfilment of the expectations.

Well done. Well managed. Expectations fulfilled.

On The Radar Screen - Turbulance Ahead

This is your captain speaking.

Welcome aboard this around-the-world flight, visiting some of the globe's economic and political hot-spots.

Fasten your seat belts. There is turbulence ahead.

We can and will ride it out, but it will be a bit bumpy. It may be necessary to reset our course several times to negotiate the conditions which lie ahead.

Be advised, we will be changing altitudes at various times in an endeavour to find the smoothest possible passage.

Our route on this trip has us tracking north and west. We do not anticipate any tailwinds. Therefore, the engines will need to work at full power and there will be no early arrivals.

Late in the flight do keep your eyes open, because we will probably see the sun setting on a number of countries, as we have known them.

European air-traffic control has issued a warning. There is a heavy flight of capital out of Greece to Germany, creating some congestion and its own slipstream. We will remain mindful of this. However, it should not cause us any major concern or delays. The impact will be relative(s) and should be limited to certain suburbs in metropolitan Melbourne.

Our instruments are showing a drag on the left wing and we expect that to increase over France. We are monitoring the situation closely. The atmosphere in Spain and Portugal may exacerbate conditions.

The global forecast is for a series of storm fronts to gather and stay over Europe for around a decade. There will be flooding in specific localities and businesses will bear substantial costs, many will incur damage (to revenue, sales and growth) and some will be washed out to sea. Analysis at this time has identified much structural damage and the re-building program will be long, complex and costly.

In most instances, there is no insurance cover to off-set the costs and premiums will be regraded. That appears to be a prudent policy, with little risk that it will not occur.

National business, political and economic lexicons will witness additions. Already, there is widespread and conspicuous evidence that the Greeks, French, Spanish, Portuguese and Irish are experiencing difficulty comprehending, articulating and applying simple words like austerity.

We have received word that the volcanic Mt Etna in Italy is active, which is in stark contrast to the national government. The former Prime Minister has been found to be a “Little Emperor” without clothes. He has given up his political party in favour of another bunga-bunga party. Advice is that we should avoid that airspace as a precaution to possible fallout.

A large depression has been identified over Ireland. Yes, that is correct and confirmed... to-be-sure, to-be-sure.

Here is an interesting aside. European business schools, political science facilities and universities are offering new and refresher courses on profits, costs, margin risk and capital management. At this time interest and enrolments are sparse. It seems many of the potential students are otherwise engaged in reclaiming and Occupying The Streets of cities throughout the continent.

The worst of the storms across the Atlantic Ocean over the North America continent have passed and dissipated. A lot of rebuilding is needed, not the least of which is confidence. This will be no tea party.

Regrettably, no one is showing or paying any interest. We will be avoiding that area because wind-shear and down-draughts will make it hard for us to take off and achieve any uplift for some time.

Reports have been received that China is experiencing an unseasonal cold chill, which is affecting the local atmosphere. Movement and air-traffic have slowed appreciably.

There are fears of a pending avalanche which will affect Beijing. We are assured that the Central Communist Party is drafting a most positive forecast...

Our scheduled stopover in India has been cancelled. We have received advice there has been another earthquake which has shaken the country. Five more cricketers have been found to be negotiating to cheat with the bowling of no-balls, wides and donkey-drops.

Hold on. Disregard that advice. It seems the situation is normal. Oh, my goodness!

We have been able to connect with the Australian-owned and sited Jindalee Over The Horizon Radar System and can report we are tracking what appears to be a significant number of well-heeled Australian consumer refugees, who appear to be trekking overseas for relief from high prices, appallingly bad customer service and an incompetent Federal Government.

Ladies, gentleman and children, we anticipate a relatively soft-landing after a somewhat “bumpy” ride.

And so, please sit back, enjoy the spartan service (with due deference to the Greeks) and have faith. There is only one way, and that is up. And at the moment the First Officer is in full flight using the sextant trying to conclude which way that is.