How can we have a service economy without good service?

For years now, the U.S. has slowly transitioned from a industrial economy to a service, or connection economy.  The idea being, that in the connection economy, service is our competitive advantage.  Unfortunately, companies speak about service from both sides of their mouth.  For instance, you may have heard your company CEO say that everything we do revolves around our customers, and then say we need to cut our workforce and do more with less, but I know you can do it because you care about our customers.  Maybe you heard your boss say that this client is our most important client and we need to do whatever it takes to keep them. You then report back what we need to do to keep said client and you are told we can't get approval for that as we can't spend any money.

Harold Meyerson wrote an opinion piece in the April 16th Washington Post titled Taking the "service" out of the service sector where he profiles companies such as JC Penney and Wal-Mart and how their "lean" approach to staffing has hurt their business.  Companies have to continue to work to make their service, or product more compelling if they want to stay competitive.  Expend the Emotional labor necessary to differentiate yourself from your competitors and be creative in the ways you look to grow your business, or make it more profitable. My experience is that when companies stand still, don't improve their product or service and just focus on cutting and slashing to the bottom line, neither short or long term business objectives get met. Unfortunately, these days, when a CEO talks to the rank and file about the future of the organization and spouts a dynamic phrase like business transformation to excite the team, it's really just code for we need to cut jobs. 

Everyone is a marketer in the connection economy

As I've written about in the past, I'm "in between successes".  It seems no one just says they are out of work anymore.  That being said, I have spoken to many company recruiters and HR people, and they communicate with potential employees, customers, or recommenders as if they aren't very important.  They seem to communicate with the job seeker as if they are less than everyone else and we should just sit around and "hope" they decide to communicate with you in some fashion. I won't tell you the number of times an HR employee as told me they would contact me by a certain date and not only didn't meet their deadline, but didn't call me back at all to provide any feedback on an interview.

In today's connection economy, every employee in your organization needs to positively connect with whomever they interact with and show them a level of humanity not required in the old industrial age. Any negative experience can spread at speeds not possible just a decade ago.  As an employee, all you have to really offer your organization that they can't get from someone else is you.  What makes you standout?  How are you adding value?  I can assure you that treating potential customers and employees without regard won't help your companies business, or help your job be more secure.

In today's ultra competitive economy every employee needs to make positive connections and use their skill, talent and passion to make a positive difference in the organization and the world.  How do you add value, or stand out?

Linchpin Review

  I have read a lot of business related books in my time and up until recently only one has changed the trajectory of my professional career.  That book was "First, Break All the Rules" by Marcus Buckingham.  The book taught me to focus on my strengths and not beat myself up over the things I couldn't do.  It not only transformed how I managed me, but changed the way I managed and hired my employees.  That was ten years ago and it wasn't until now that I have read a book that has the potential to be just as transformative.  The book is Linchpin by Seth Godin.  If you read this blog you will realize that I am a fan of his and have already read several of his books and am a daily reader of his blog.  That being said, it was not until I read Linchpin that I had had a series of Aha moments that if I follow through on in execution could fuel my career and yours as well for the next ten years. 

The premise of Linchpin is a relatively simple one.  For years, there were two groups, management and labor.  Labor did everything they could do to fit in and be a faceless cog in the machine.  Godin now describes a third group, the Linchpin. These are the people that own their own means of production(laptop, internet connection), who can make a difference and connect us. The Linchpin steps out from the faceless masses and makes things happen.  The Linchpin connects, creates, and invents.  Godin states that by bringing your whole self to the workplace and giving of yourself in ways that you never considered before and really trying to make a difference is the only way to become indispensable. How many of you have a job where you think you can bring positive change, but you don't because rocking the boat is scary and could get you in "trouble"? Godin would say that the Linchpin not only rocks the boat, but this is the only way to create a semblance of security at work.  These are the people that create things where there is no rule book. As a matter of fact, the biggest lesson I took from the book was if you have a job where someone tells you what to do next, you have given up the chance to create value.   You may ask, what stops us all from being Linchpins? Fear and anxiety.  Get past it and be great!  His follow up to Linchpin recently came out.  It is titles the Icarus Deception.  I will give you my thoughts on this book in the near future.

I highly recommend you read Linchpin and once you have, please add your comments as I would love to hear what you have to say.

Appreciate your employees

I was thinking today how much I appreciate my kids.  You might think that sounds a bit trite, but for those of you with children you know you spend half your time adoring them and everything they do and half your time suffering from PTSD symptoms and wanting to dive under your blanket while watching them and everything they do.

This got me thinking about management.  How much do we appreciate our employees? You are with them everyday, either virtually, or in person.  You probably get so bogged down in your day to day that you forget the specialness of the people who work for you.  You probably can tell me the things they have to work on much faster than you can tell me their strengths.  You probably take them for granted.  Take some time each week to think about your team members and what they add to your team.  Then tell them.  They will appreciate the feedback and will be newly motivated. People want feedback and are more used to getting negative feedback, or none at all.  In the connection age it is imperative you make connections with your employees regularly, or they will not be your employees anymore.

Rich Goldberg

The Future of For Profit Education

  I've spent a lot of time recently studying the for profit higher education field.  For those of you that aren't aware, for profit schools have been under tremendous scrutiny by the government over the last couple of years.  Let me catch you up by linking to THIS article.  Have you read it?  Good.  As a generalization, the problem the for profit education sector has run into is the same problem any business has when they get away from focusing on their customers(students) and their product.  When profit is your number one goal you are doomed to fail because there is no substance to your business to fall back on.

The Late Steve Jobs talked about always putting products over profits.  Not that being profitable isn't important, but that being profitable gave you the ability to make more great products. How many of you are reading this on an Apple product?  I promise that Apple made a nice profit on your purchase.   In the Higher Education field, being profitable gives you the ability to train and graduate lots more students and make their lives better and the country richer.  Our industry needs to focus on our mission, our courses of study and our students success.  That's what will lead to long term profitability, as opposed to shady selling tactics.  To be clear, an admissions advisor focused on "sales" is important.  A great admissions advisor will properly qualify a potential student, and then it is his/her job to "enroll" them in the possiblility of what this educational opportunity will provide.  Any sort of higher education program is a big commitment and students do need help seeing the big picture.  It's not only a schools job to help students with this, it is their obligation to have a great academic program that will then back up what the admissions advisor has promised.  

The advantage of a for profit organization is that nothing gets in the way of innovation and improvement.  Theoretically, the more you improve, the more success your business will have.  Recently, one of my children needed academic intervention which my wife and I felt wasn't as robust as necessary to solve the problem.  We were told by the school system that they are doing what is mandated.  A for profit business doesn't think that way.  It thinks, what do I have to do to get the job done as that is the only way to be profitable and stay in business.

Lastly, the schools that will survive are the schools that are commited to offering programs that are better than their competitors.  These competitors are both for profit and not for profit.  Price isn't as much of an issue when you offer a better product.  That being said, schools need to charge tuition that makes sense for the economic times that we are in.  I'm not talking about a race to the bottom, but tuition that makes financial sense for both the business and the consumer.  I personally believe all the scrutiny of our industry is ultimately good.  The education companies most committed to their student focused missions will not only survive, but ultimately thrive, while the rest of the companies will slowly fade away.  Capitalism at its best.

Rich Goldberg

Random Thoughts

  It's been a while since I have posted and I have had lots of thoughts.  So in the tradition of Larry King's old USA Today column's Let's get started.  

I'm not sure why The IPad Mini is so popular.  I would not be happy with the smaller screen.  Why can't LinkedIn make their IPad app more like their website?  I tend to just go through safari than use the app.  I really want to see the new movie This is 40 when it comes out.  Does anyone recommend an online education platform?  I've taken a couple of online courses recently and I haven't been impressed.  Ultimately, it still will come down to the teaching and the content.  I've never been there, but I've always felt I should live in Denver.  I have been to Northern California and I think I should live there too.  By the way, I need a job in either Denver, or Northern California....Chicago would be fine too.  I'm really tired of hearing about the fiscal cliff.  Sometimes it feels like congress thinks it is just "playing" government and that their actions don't really effect the country.  I love the library.  If you don't visit regularly you are missing out.  I hope everyone is having a great holiday season.  Take some time of and spend it with loved ones, they will appreciate it.

We must change the meaning of education

As some of you know, I'm a big fan of Seth Godin.  He is an incredible thinker and has profound thoughts on many subjects.  Earlier this year he wrote a 30,000 word manifesto on the future of education.  Here is a Link to the book and a TedX talk he gave on the subject.  Please share with as many people as possible.  I think the topic of education reform is very important.