Survival of the Fittest - Facing Change

I wrote this piece about change in the OPE industry on January 15, 1995. I believe it is just as pertinent today as it was in 1995. What do you think?

Each morning, over your first cup of coffee, you cringe at the thought of what you will hear this day about more changes in an industry where change seems constant. You feel comfortable that you’re running your business fairly well. While there’s always room for improvement, you try to take care of your customers extremely well. You provide them a service or product that’s good enough for them to pay you a profit for providing it.

You also realize that nobody “owns their customers anymore. And that you are only as good as your last performance was. If it was lousy, your customer will simply turn to someone else. So you always try to exceed your customer’s expectations. Today you’re confident about your business abilities, but you have some fear about tomorrow and the changes that will most certainly affect you in the future. How should you respond to them?

In past years a strong and stable company was one that never changed. Today, a strong, stable company is one that constantly changes; that takes advantage of every opportunity that change presents; and uses every opportunity to move forward in a positive manner.

Alexander Graham Bell best stated what our normal reaction to change is, when he said: “When one door closes, another always opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.” You can’t keep your eyes shut, or have tunnel vision. You have to see and recognize the opportunities as they are presented to you. And that may take some work on your part.

You recognize opportunities by staying informed about what is going on in your industry. You read trade publications. You talk to informed, knowledgeable people. You attend industry meetings and trade shows. And you listen better than you ever have before. Informed knowledge gives you the opportunities; opportunities give you options; and options give you choices. Then it’s up to you.

Don’t worry, as you ponder your choices, that many may seem of little consequence, or too complex, or that you might make the wrong decision. One of the most important things in the world for you to know is not where you stand today, but in what direction you are moving for tomorrow.

See your opportunities and make your informed choices. Then with a passion you didn’t know you had, focus yourself and your associates on relentlessly pursuing your vision. Only you have the power to make it happen in your business. Don’t ever get caught looking so longingly and regretfully on the closed door, that you can’t see the opportunities presented by the new door that opened!

No. 7 July 2007

John Deere plans to acquire a Chinese tractor manufacturer, Ningbo Benye, later in 2007. Ningo Benye manufactures tractors in the 20- to 50-horsepower range, while Deere currently manufactures tractors in the 60- to 120-horsepower range at its joint venture factory in China.

Deere said that there is a growing demand in China for this smaller size tractor because of increasing mechanization by rice farmers. And that this product range can be leveraged for sales into other Asian and African markets.

I’m waiting for the coming headline that says a Chinese manufacturer did just the opposite of Deere and bought a U.S. manufacturer of farm and/or OPE equipment. I sure wouldn’t bet against it happening!

Jim Citrin, a business consultant with a terrific business Web Blog, recently wrote about how Sean Lannan, the treasurer of Polaroid Corporation, responded to criticism.

Lannan said, “When someone directs a personal attack at me, my first action is to withdraw consciously from the situation and think, ‘What is it that they’re really bringing up here? Do they have a genuine concern, or do they have an agenda?’ I try to...determine whether this is something that the person needs to vent or (is it) a legitimate issue to be addressed.”

If it’s just venting, Lannan just lets it come out and puts on his thick skin. But if it’s a legitimate concern about him, he moves into diplomacy mode and works to figure out what needs to change.

Not getting emotionally involved when someone criticizes you or your business is extremely hard to do. But by backing away emotionally from the situation and listening very carefully, you can do as Lannan and put on a thick skin. Or, if the criticism is legitimate, figure out what needs to change and then change it.

In a recent interview, Han Straberg, CEO of Electrolux (and Husqvarna before the spin-off), discussed the power of brand names. He stated, “We abandoned a multi-brand appliance strategy when we saw that even in the industries hit hardest by low-cost imports like TVs, a large majority of consumers would deliberately pay a premium for distinct global brands such as Sony or Philips.

We then committed ourselves to a master global brand strategy using ‘Electrolux,’ complemented by some well-defined sub-brands. Today, sales of the Electrolux brand account for one-half of total group appliance sales, up from only 10 percent in 2000."

Do you believe your customers will pay a premium for a brand they know and trust? Do they know and trust the brands you sell?

Speaking of Husqvarna, the company celebrated its one-year anniversary of being spun-off from Electrolux on June 13. And it is celebrating a rich history that goes back 318 years. In its 12 months as an independent company, Husqvarna has already made six acquisitions. Growing, growing, growing...

Since airlines were deregulated in 1978, nearly 100 airlines have come and gone. Yet, airlines continue to punish the very customers they depend on. Remember Jet Blue stranding passengers for 10 hours on the tarmac in February 2007 at New York's JFK International Airport?

Richard Branson, who founded Virgin Atlantic Airlines, once said that the best way to become a millionaire is to "start as a billionaire, and then buy an airline."

Flying today is definitely an adventure.

I used to read about how the Internet would eventually make TV watching fade away. But just the opposite has been happening. Nielsen Media Research recently reported that “the average U.S. household watched eight hours and 14 minutes of television a day last year,” and “the average individual American watched four hours and 35 minutes a day.” Both of these figures are the highest in Nielsen’s 50-plus years of tracking television viewership.

The conclusion: “As we spend more time on the Internet, we’re unlikely to take that time away from watching TV. Instead, we’re more likely to cut back on things we consider less important, like sleep.”

Wait a minute...sleep is less important? I don’t think so!