Fri, November 28th, 2008 - 5:06 am - By Gordon Basichis
Everybody is creeped out over the economy. Everyone is worried about their job. We have just gone to riding high on the hog to hoping we make it over the tree tops. This is a tough economy, and we are not used to much of anything that’s tough.
Yes, we heard stories of the Depression. But that was so long ago. And it is difficult to relate to those grainy black and white films or the bitter tales that grandpa told us. It is a tragedy when the liquor store runs out of single malt Scotch, or the softer brand toilet paper is out of stock. A lot of us are used to extending ourselves and buying $2 Hundred jeans and $400.00 shirts. This by no means is most of us, but it is enough of us. Just look at the cars we drive, that we lease, and you know many of us have overextended.
So now it is crunch time and every day is a new adventure with working. You show up at the office unsure if you will get that offer of a buyout, the layoff slip, the goodbye, see you later, scenario. You read the paper and every company is firing people by the thousand. The number start to roll up where the loss is unestimable on people’s ability to earn a living. On people’s psyches.
I had a story the other day from a woman who tried to call her so called friends who through networking could help her find a job. Most wouldn’t take her calls. Were they that calloused or simply too embarrassed they couldn’t help her find work? Tough to say.
If you are an employer, treat your people well. Reassure them but be realistic. And do not uses this bad economy as leverage to hold over their heads so that they are in constant fear of losing their jobs. It isn’t right, and it isn’t fair.
And if you are working and your friend was laid off, don’t ignore them. Take their call. Tell them there isn’t much you can do, but you will let them know if you hear of anything. Most people realize how tough it is and that there are no miracle workers. But times will change, and you would rather be known in the future era as a better person than the person who ignored his friends. Besides, when you get up in the morning and stare in the mirror, you will like the person you see.
Check them out before you hire.
Thu, November 27th, 2008 - 5:16 am - By Gordon Basichis
Okay, the economy is lousy and instead of buying that new car you are out there shopping for tires and brakes. Reading the news every day offers a new adventure. You see that the global economy is global ignominy.
But we still have Thanksgiving. Football, Turkey and Family Gatherings. Four days off. Very cool.
Enjoy the time with your families. Eat, drink, and go shopping on Black Friday. Your retailers will love you for it.
Happy Thanksgiving from the Corra Group.
Wed, November 26th, 2008 - 5:36 am - By Gordon Basichis
The United States Government is bailing out CitiGroup, the latest in a group to be rescued from disaster. It seems if it wasn’t for stimulus packages the economy would have no stimulation at all. And of course President-elect Obamas has issued dire predictions for the coming year. Happy New Year, everyone.
But this will turn around and we will move forward again. This country was in desperate need for transition, and the beginning of that transition was long overdue. We have to go back to making things and not just shuffling papers around and calling it an economy. What we will be making are the new technologies that will serve to develop nations well into the twenty first century and beyond. We will be developing alternative energy solutions and the technology for enviromental cleanup.
Some of the older businesses, the Big Three, to name a few, are no longer icons but dinosaurs. The product they develop and the means of development is as out dated as their thinking process. Private Jets to a meeting where you are begging for money. Hard to believe.
So new companies will enter the market. As it was more than half a century ago, when there weren’t just the big three manufacturing American vehicles but the other companies that have long gone to the automotive graveyard. But companies will emerge. My brother-in-law just sent me an interesting piece on the new developments in automotive technology, from the composite frames to delivering more fuel energy to the wheels. It’s is just the start.
So times for the economy are bad. Times will be better. And then times will be good. Companies will restructure or new companies will emerge as regional and global leaders. People will hire again, only in the future preemployment screening will be a little more complex and geared to assess the candidate’s skill sets and how they apply to future requirements.
Meanwhile, the government will grab the pail and start to bail. While the best means of resolving this crisis are still in debate, we can take heart that this is the first time in awhile that most people are on the same page. Get moving again. Into the future.
Tue, November 25th, 2008 - 5:10 am - By Gordon Basichis
It is not joke when your business creates a product or service that proves difficulty to market. You sift thorugh dozens of different marketing strategies until you find the right one. You find that there doesn’t seem to be a right one. There are no easy catch phrases, slogans, or pieces of information that will attract your targeted consumer.
There are times when the subject of the product or service is such that it is difficult to create a viral element. It is tough to create a desire or to market in such a way your targeted consumers perceive the need. If you delay your marketing campaign you may let your window of opportunity slip out of sight. If you market incorrectly, you may create the kind of disaster that costs ten times the initial campaign amount to recover, if you can recover at all.
The entertainment industry has for years been faced with this problem. There is a standard saying within show business that “they just didn’t know how to market it.” People may agree the film or show was a good one, top quality, even, but they couldn’t figure the marketing line that would generate public appeal.
According to an article in Ad Age, United Artists has that problem with Tom Cruise’s new movie, “Valkyrie.” The film depicts the failed attempt of German officers to assassinate Adolph Hitler, before he could bring Germany to its knees. The film is generally problematic because many viewers suffer from “Nazi Ennui.” For many, the younger audience that actually goes to films, it is a tired subject. Then there is Cruise’s controversial behavior that didn’t exactly enthrall a fair number of older viewers. And then there is the subject, intrepid but disillusioned Nazis, or German Officers, fail to kill Hitler. Hardly romantic.
The movie’s release has been postponed. The film has become known as the “Eye-Patch” Movie, for the eye-patch Tom Cruise wears in portraying one German officer. So, as with all movies that seem to be problematic, there are whispers in Hollywood that don’t help any. The film now awaits test screening.
The executives have decided to position the film as more of an ensemble piece. Less Tom, more other actors. They focus on the true story elements, the conspiracy elements, which they believe people like. We shall see.
Meanwhile, the entertainment industry is not the only industry that finds obstacles in marketing certain products and services. Every industry has its marketing challenges. In these tough economic times the challenges are ven greater. People do not want to spend their money. You have to get them to spend your money. Not easy.
Before your marketing campagin becomes a partial Waterloo, evaluate not only your campaign but the team creating the marketing campaign. Do you have the right mix of people? If you are marketing in a cross platform platform do you have the people who know what they are doing? It is improtant to have the experienced adults but just as important to have the creative types and the younger, usually younger, techie wizards who can bring you online. They have to be able to work together, create together. For the benefit of future projects, they have to be able to grow together.
So look over your marketing staff, carefully. You may need to make changes. You may need to bring new people aboard. There are plenty out there, what with all the layoffs. But not all are as sharp as you may desire. Some are hacks, quite frankly, or so compartmentalized in their skill sets they lack the versatility you need on a modern day team.
Run preemployment screening on your candidates. Run background checks that include the type of professional reference checks that can evaluate skill sets. Be sure they are merely victims of the downturn and not the deadwood that your competitors had at last had the opportunity to get rid of. Take nobody’s word for nothing. Colleagues like to do their friends a favor and praise them in hopes that these same people will do the same for them when they, too, are job hunting. So be thorough.
Check them out before you hire.
Mon, November 24th, 2008 - 4:59 am - By Gordon Basichis
Manpower has reported there will be layoffs in all Western Nations as many companies try to survive the economic meltdown. Layoffs will come apparently after businesses figure out their budgets for the coming year.
Obviously, this is not good news. Nor is it comforting to know that every country in the world is affected. Perhaps nothing is as telling that we are living in a global economy than our shared misery thanks to this economic decline.
I sense as well that everyone is looking at everyone else, waiting for somebody to do something. Trouble is, nobody really knows quite what to do. Or to once again employ prominent screenwriter William Goldman’s statement about the entertainment industry in particular and probably now to the rest of the world, “Nobody knows nothing.”
So we sit here playing with our paper clips and trying not to panic. For those of us who have lived in rougher times, regional wars, ethnic cleansing and the threats of annihilation, this is but a speed bump in the overall scheme of things. For those still around who remember the Great Depression, this doesn’t look so bad.
But for some of us who have spoiled ourselves with endless gratuity, trinkets, beads and high priced everything, it may look like the end of the world. Perhaps it is a retrenching on a Global Level. The U.S. can’t consume like it used to, and the rest of the world can’t try to be just like the United States. Or something like that.
But for now people are out of work. For them it is a disaster. For the rest of us, we hold our collective breath. Most businesses will survive. Some will go under. And some will innovate and not only survive but prosper in this very tough economy. They will take advantage of the layoffs to beef of their own staffs with the best selection in the pool of cast offs. When it all shakes out, not only will they be standing there, but they will be way ahead of the pack.
Look at it this way, even economic disaster is just another phase in the cycle of history. This too will pass.
Fri, November 21st, 2008 - 5:15 am - By Gordon Basichis
For several blog pieces now I have taken note of the slaughter in the media industry. The news industry, especially, has been decimated by layoffs and publication failures. For every media group, it seems, laying off a thousand employees or more is only a start in the cost cutting. Marty Pompadur, the exiting Chairman of News Corp Europe recently predicted a steep recession for the media industry. Long and very deep.
In the face of the downturn I have been suggesting in different blog articles that savvy business hire laid off journalists to handle some of their proposals, marcom materials and to assist with public relations opportunities. Apparently, Former General Manager of MSNBC Dan Abrams had a similar idea, only he took the concept a major step further and went into business for himself.
According to the Wall Street Journal, Abrams has founded Abrams Research, a media strategy firm. The new firm is designed to assist senior executives in dealing with the public relations challenges they confront on a regular basis. The public relations issues can range from blogger adversity to mergers and acquistions.
Abrams has assembled a network of media personalities who will work with clients. The firm will be charging an hourly fee. In all, it is not only a terrific idea it is one whose time has come. Certain public relations firms may be equipped to handle this kind of subject matter. But a good many are not. Additionally, this kind of work requires hand holding and lobbying, interfacing with the media on levels the average public relations executive would find inaccessible.
Given the roster from which Abrams can draw, I am sure the preemployment screening aspects will prove a snap. As more and more media people are laid off, he will have a rich pool to choose from. So will you, if you belive you can retain media savvy folk for in-house assignments. Even for contractual work, or part time.
It’s a smart move. Check them out before you hire.
Thu, November 20th, 2008 - 5:18 am - By Gordon Basichis
These are rotten times, economically speaking. In fact, there may be a couple of reasons to point to this being rotten times on a lot of levels. I’e never been known for my rosy outlook, but I do look at these times as quite exciting. Despite the economical downturn, in fact even because of it, as well as obstacles and threats there are also opportunities.
There is an article by Henry Blodget in the Silicon Alley Insider that explains how this could be advantageous times for Microsoft. Blodget writes that while others struggle to survive, Microsoft has the opportunity to buy its competition. I should add not only to buy its competition but those companies that in the long run would serve to make Microsoft stronger. Blodget writes, quite correctly, that Microsoft must then put the Internet based companies it buys under a single, umbrella branding in order not only only to gain optimum advantage but to keep from failing.
Reading Blodget’s article reminded me of my grandfather and his circle of friends and how during the depression they were among the few who were cash rich. Rather than try to hoard their assets, well they hoarded enough to cover themselves, believe me, they moved forward and bought up the competition and any assets they deemed beneficial in the long run. They bought these assets for cash and ins ome cases for pennies on the dollar.
I believe this type of thinking can apply to Microsoft and any other business out there with extra cash in pocket. Some may disagree and think it’s best to watch the dollar at a time like this. Others will see the wisdom, think in terms of the long run and make offers at what may prove to be bargain prices. Years from now, when this economic downturn is on the rebound, they could be the companies that profit the most.
Obviously, you got to be careful. Due diligence, coupled with specific corporate research is the mandate. And then there is the hiring. You will need to staff key executives. Those familiar with turnaround and restructuring. Do you background checks carefully on these folks. Make sure they can really perform and are not are not bunch of Wall Street guys who can do well only in the good times and will drive a company into the ground when generating profits is not like shooting fish in the barrel. There are some very capable senior executives out there. Despite the recent focus on MBA’s, which can be important, the more capable are supported with years of experience. Years, meaning they have been through harsher times and realize what is necessary to stabilize a business.
In the short run, you as the company owner may grimace when you have to produce the precious cash that allows you to buy both competitors and strategic assets. But years from now, or sooner, that grimace could turn into a nice big smile.
Check them out before you hire.
Wed, November 19th, 2008 - 5:46 am - By Gordon Basichis
It is debatable whether the Big Three still make crummy cars. In fact, while their reputation for making lousy vehicles hangs over them like the dark smoke of Los Angeles canyon fires, they do in fact make some pretty decent vehicles. Some. Not all. Far from it.
The Big three also make decent trucks. And when fuel efficiency was not an issue, they put out some SUV’s that were boxy and ugly, but had that popular appeal. And they did run some nice commercials. At least the ad agencies did. But with the exception of the trucks and the SUV’s car sales were declining precipitously.
What the Big Three could never do is make the necessary adjustments. They revelled in the once glorious past where America was king of cars. They reacted to the competition. First they didn’t react at all, and when they were clearly putting out inferior vehicles, they raced to play catch up. Come the SUV and Truck period they moved ahead for awhile, just enough to sit their fat rumps down and rest on their laurels.
But what the Big Three have never done is think with an eye toward the future They are not innovators. Their thinking is journeyman thinking. And now with the three auto manufacturers ready to fall into bankruptcy, they are asking for a bail out. Forget the early bailouts, where they took the money and did nothing. Forget the fact that their chief officers seem to care little for accountability. Stepping down for them seems out of the question. They haven’t yet seemed to recognize they are building cars nobody wants to buy.
Do they have a plan that would determine how best to retool and use the bailout funding? That would take too much effort. Do they have an innovative bit of engineering on the production drawing boards? Hardly. But they do need money. They want money? For what? To save the car industry or to merely postpone certain disaster.
What is particularly startling is not so much how the industry effects us as the industry alone. That is pretty evident. In terms of jobs on the assembly line and immediate suppliers, we can all pretty much determine that has a major impact. But according to an article in AD Age what we don’t think about is how the demise of the Big Three automamakers would so grievously affect Amerca’s overall economy.
The impact the demise of the Big Three would have on advertising alone is unsettling. Two and a half percent of the overall Cable Television revenue comes from automobile commercials. Nearly 7% of the ESPN revenue comes from car and truck commercials. Car advertising makes up almost 6% of the nationla television spending. The same kind of figures holds true for every media venue.
And then there are the ancillary suppliers. The parts manufacturers and their laborers. When you add it all up it is not just whether they put a car on the road, it’s whether their demise is a highway to national economic disaster.
The giants have become dwarves and they now are on the verge of extinction. Other companies, more innovative, leaner and meaner companies will probably rise up to take their places. We are America, after all, and nothing seems to motivate us better than a crisis. But, still, at the end of the day the Big Three automakers are more than themselves. They are larger than the sum of its parts. But they are past the day when all is romantic and appealing, when we can just put the top down and drive off into the Sunset.
They may cruise for awhile, but then their tires will flatten, the paint will rust, and the entire industry will find itself in the cosmic salvage yard. Whether they get bailed out or not, the way they do business and the cars they manufacture has got to change. The thing is, the big question, is how did they mess up so badly?