Hiring Outsiders to Run Family Owned Businesses

www.gmb.com.ph

I just read a nice column by Henry Hutcheson that ran in the Charlotte Observer, looking at when it is appropriate to hire an outsider to run a family owned business.

Hutcheson knows his stuff; he runs his own website that provides advice to family owned companies and his a member of the family that owns the Olan Mills photography business.

The column shares a number of useful tips that family members should consider before bringing on an outside executive:

• Hold a family meeting to discuss the potential hiring
• Reach an understanding on the type of individual who would best fit with the business ... and the family
• Accept that it will cost more to hire an outsider
• The goal for hiring an outsider: boost business in the near term and buy time to weigh options (including a sale) in the long term

Again, you can read the entire column here.

Loyalty 4.0: Marketing to Consumers in Real Time

Photo: LinkedIn

Imagine a couple walking through the grocery store. They have a grocery list and, as they meander through the aisles, they stop at the pet care section. They look down at their list to confirm that dog food is on there and, almost instantly, their smartphone buzzes. A quick swipe of the screen reveals a coupon for a specific brand of dog food, ultimately influencing the sale.

That scenario is close to happening, John Ross, president of Inmar Analytics, said during a presentation Friday morning as part of the Wake Forest Center for Retail Innovation’s second annual Marketing Analytics Workshop. 

The Center for Retail Innovation is a partnership among the Wake Forest University Schools of Business and sponsors Inmar, Bellomy Research, CVS Caremark and SymphonyIRI Group. “Shoppers are getting ahead of retailers,” he added.

“Retailers need to know what shoppers are doing in the moment and proceed from there,” Ross said in remarks geared toward the future of marketing and loyalty programs.

“Loyalty generating moments that take place in the store – that’s where we think this whole thing is going to play out,” he added. “It is all going to catch up through the mobile device. When the shopper is ahead of the marketplace … that’s where you can make real connections.”

The Marketing Analytics Workshop features a variety of speakers from companies such as Inmar, Pepsi and Sam’s Club. The event also features a case competition that pairs up current students with marketing professionals.

In his presentation, Ross also highlighted a number of pitfalls that await retailers who hold on too tightly to the old way of marketing to consumers. They include:

·         Clustering that lags shopper behavior. He gave an example of a company sending out dog food coupons a year after someone has lost their pet

·         Once in, never out marketing

·         Discount strategy v. content strategy

·         Discounts that are out of step with a consumer's purchase cadence. His example involved a store sending marketing for Star Trek items to a Star Wars fan.

Dean Reinemund Leaving Wake Forest - A Few Thoughts

Photo: Walmart

I just opened my email to find out that Steve Reinemund is leaving his post as Dean of the Wake Forest Schools of Business at the end of this academic year. His last day at the university will be June 30.

It is quite an abrupt departure for the man who spearheaded a $55 million capital campaign that led to the construction of Ferrell Hall. Fortunately, Reinemund will remain involved with the university as an "executive in residence," though it will be interesting to see if he is courted by any other entities - whether corporate or nonprofit.

Wake Forest said it will conduct a national search for his successor; more information is expected shortly.

The timing of the announcement is a bit odd. Organizers are in the middle of raising more than $110 million for the Schools of Business as part of the massive Wake Will campaign, including another $33 million for Farrell Hall. And the university recently capped off a social media contest tied to Farrell Hall with a grand prize that features breakfast with Dean Reinemund sometime next fall. Then again, Reinemund, 65, may have decided to move on after completing five years of service to the university.

I enjoyed my time working with Dean Reinemund. He was willing to take a shot on a journalist who wanted funding to attend school in exchange for building a social media platform. Far from a social media junkie himself, Reinemund was still quick to note that his children were very keen on it. He enthusiastically allowed me to roll my sleeves up and overhaul how the business school communicates with prospects, students and alumni.

Reinemund has that type of vision and confidence in people who have good ideas. He will also be remembered for encouraging students to find their passion and, in turn, discover their purpose. And he will also be known around campus for the annual basketball tournaments held at his home and the Thursday morning runs branded, appropriately, as "Dawn with the Dean."

I'm sure most students have a good memory or thought to share about our outgoing Dean. It is rare for business schools to pull a corporate leader to fill the dean's position. Perhaps Reinemund will prove to be a trailblazer there as well.

Here is the letter that Reinemund sent out today announcing his plans to step aside. Let's hope Wake Forest can find a successor with his energy, determination and passion.



Dear WFUSB Alumni,

It has been an honor to serve as the Wake Forest Dean of Business for the past 5½ years. I came to an outstanding university in 2008 and thanks to the dedication and commitment of our faculty, staff, students, alumni, parents and friends of the School, we have made the unified Wake Forest School of Business truly a world-class institution. Our shared vision of achieving excellence in education at Wake Forest and providing an exceptional experience for our students and alumni has been, and will continue to be, a primary focus.

Our student body continues to evolve as a dynamic and diverse group of intellectuals with a wide variety of personal passions and talents. Now, and in the upcoming years, it will be exciting to see how they will take advantage of all that is here to equip them — academically, ethically, socially and physically — to positively and powerfully impact our country and our world.

I want to share that I will be stepping down as Dean of Business at the end of this academic year. At that time, I will serve Wake Forest as Executive-in-Residence and assist our students as they set out on their journey to make a meaningful difference in whatever they choose to do.


The involvement and support of Wake Forest alumni and friends remains as vital as ever to our mission. We appreciate all that you do to help form valuable bridges that connect our students to the world.

Best regards,

Steve Reinemund

Sitting on Wings: McDonald's Lesson in Positioning

Photo: businessinsider.com

We're not trying to pick on McDonald's, though the fast food chain has provided several good case studies lately.

Recently, we highlighted how the chain's decision to add more items to the menu had negatively impacted wait times and customer service. Management is taking steps to streamline and make the process run more efficiently.

The latest snafu involves the company's attempt to go up against Buffalo Wild Wings by offering a product it called Mighty Wings. The problem? Customers were lukewarm to the product and, as a result, McDonald's is reportedly sitting on 10 million pounds of frozen chicken. Yikes!

One article I read gave several good reasons why the Mighty Wings effort, well, flopped. Many of the reasons can be linked to MBA 101.

The wings, which sold for 97 cents to $1.23 each depending on the packs, were overpriced relative to the typical Micky D's menu item. It seems as though the company tried to position itself in the same quadrant as Buffalo Wild Wings without offering the same sit-down experience (or big screen TVs). That is a big miscue - trying to be something that you are not and getting out of position.

Along those lines, Business Insider observed that the pricing seemed a bit too high for customers who are continuing to have financial struggles. Those folks will still go to the Golden Arches, but would opt for standby items such as the Big Mac or Dollar Menu items.

Looks are important, too, leaning on the adage that 'eye appeal is buy appeal.' BusinessWeek noted a while back that the Mighty Wings looked a lot like McNuggets with bones. KFC, in contrast, rolled out a boneless wing option, which seems to involve a lot less work to consume.

Finally, McDonald's CEO Don Thompson noted that the spiciness of the wings seemed to clash with customers' palettes. That goes to show how important it is to use focus groups, pilots, etc. Maybe McDonald's did that and, if so, the results must have contrasted with those of a full roll-out.

Interested in Speaking at Next Year's TEDxGreensboro?

www.tedxgreensboro.com

Organizers of the next TEDxGreensboro event are looking for the next collection of thought leaders to discuss ways to make the future brighter in the local community. The event is set for May 8.

Roughly a year ago, organizers began planning the initial TEDxGreensboro program, which we featured in a blog that can be found here.

This year's event brought in a wide range of speakers that included playwrights, young professionals, vocalists and other optimists for an event never seen here before.

This year's event is focusing on "The Future, Regardless..." According to the nomination site, organizers are looking for people "who will affect the future" through personal action, research and technology, business pursuits and/or community development. You can nominate someone, or yourself, by clicking here.

This is a great opportunity for some of our young and emerging business/thought leaders to step up and share their stories. I would strongly encourage people to go to think about topics that are important to our future and volunteer someone to discuss it during this important event.

McDonald's Learns Sometimes Less is More

Photo: wikipedia

I found an interesting article for operations management folks.

McDonald's has realized that its addition of so many new products is creating service issues. It goes to show that, by adding too many items or making the ordering process more complicated, you can create bottlenecks and reduce customer satisfaction. That is never a good thing.

The article quotes Jeff Stratton, president of McDonald's USA, who acknowledges that the company's torrid introduction of menu items "created challenges for the restaurants." Looking back, Stratton adds that he "would have taken more time" to study how introducing new items would impact service.

Turnaround times are a big deal. I know that I have left other fast-food restaurants after walking in the door to realize how long I would have to wait. A number of restaurants try to address this issue; Chick-fil-A, for instance, adds order takers to its drive through lines during the lunch rush to handle more
volume.

Apparently, McDonald's service times took a hit this year, posting the slowest turnaround in the 15 years that QSR Magazine, a trade publication, has been keeping track. In response, McDonald's plans to introduce new preparation tables to accommodate more ingredients and, thus, accelerate the assembly process.

It will be interesting to see how such a subtle change in the kitchen will influence the turnaround times.

Too Much Gourmet? We Need a New Word for Quality

One of many 'gourmet' shops in the Atlanta airport.

It has been quite awhile since my last post. And for that I apologize.

My employer occasionally sends me on business trips. I get to travel to parts of the country that I have never visited before ... but I also find myself so swamped that I don't have enough time to blog. Tradeoffs are so much fun!

During one of my trips I was walking (more like sprinting) through the airport in Atlanta. As I was passing by the numerous stands and cafe offerings, I noticed something.

Food vendors sure seem to rely heavily on the word gourmet. Gourmet coffee. Gourmet salads.

Gourmet sandwiches. Gourmet everything. I could not believe it. You would think that, eventually, some enterprising restaurateur would go to Thesaurus.com and rustle up a synonym for that word. I don't know why this got on my nerves so much, and then it hit me.

Yes, it is important to position your offerings as high-quality fare. But when you use the same verbiage as your competition, you run the risk of having your message get lost in the clatter. That's how I felt. I never really noticed what type of salad was for sale, or the name of the vendor selling coffee. All I saw was gourmet, gourmet, gourmet, until it was all one big foodie blur.

Vendors in the Atlanta airport ... be daring and differentiate. If so, I might by a sandwich from you the next time I speed through between flights.