The 7Es of New Retail

The inspiration for this short post comes from an article covered by the venerable OgilvyOne sometime back on how the 4Ps of Marketing – Product, Place, Price, Promotion – are losing relevance in today’s Marketplace and are being replaced by the 4Es of Marketing: Experience, Everyplace, Exchange and Evangelism

The Concept

Recall the first lessons from Retail 101 and we know that the Marketing 4Ps got extrapolated to the 7Ps of Retail: Product, Price, Place, Promotion, People, Process and Physical Environment

On ‘New’ Retail and 7Es

These are 7Es of 'New' Retail in the Digital era: 

7Es of 'New' Retail in the Digital Era

Product > Experience

Price > Effectiveness (read: Elasticity)

Place > Everywhere

Promotion > Exclusivity

People > Empowerment

Process > Efficiency (read: Emphasis)

Physical Environment > Excitement

The biggest question to adapt to this change is: How do we operationalize it? Hopefully, we will get those answers over the next few posts. Cheers. 

Hit Refresh

No, I am not referring to Satya Nadella's story. :) I am referring to my fresh efforts at restarting this blogpost after a really long hiatus. I hope I will continue at this initiative now longer than I earlier had and that I will be more regular than I earlier was. :) 

3 Variables of a Job

I am putting this post here because it has come up in work conversations so often during the last many years that I think deserves to be published and saved for tomorrow's reference. Yes, it really has that truism.

As I remember this story, some professor of my elder brother, who was doing his MBA at ISB in 2005-06, had mentioned to their class that there are 3 variables to every job - Profile, Location and Money.

In most jobs, only one variable will really meet your expectations. (Keep looking.)
In good jobs, two variables will meet your expectations. (Enjoy it.)
In ideal jobs, all three variables will meet your expectations. (Stick with it.)

I have analyzed many people's jobs on these 3 variables over the years (including multiple jobs of mine) and have found all job issues (or lack thereof) were somehow always in line with these 3 variables. Hence, I think that it is a good tool to use when evaluating an existing job as well as a new job. And, especially so when evaluating quitting an existing job and comparing it with a new job.

2 Leadership Traits

I recently had the chance to attend the Forbes India Leadership Awards (2012) and somehow from all that talk about Leadership, Success, Key Success Factors, etc. the conversation that stayed with me was the the one between Philosopher Satguru and Indian Banking icon K.V.Kamath.

Satguru reckons that the 2 traits he sees in true Leaders are:
1) Uniqueness: They do have at least one unique strength - functional, behavioral, whatever - which they leverage very well.
2) Competency Building: They continuously look to build their competencies, rather than aiming for the job of a Leader. Over time, they develop so many competencies that they are then (suddenly) the only people who can do a Leadership job.

K.V.Kamath reckons that the 2 traits he sees in true Leaders are:
1) Foresight: They are able to see at least some things - Trends, Opportunities, Threats - very well in advance compared to the others, and they get busy preparing for that scenario.
2) Execution: Once the visualization is over, they have the capability to get their hands dirty and get things rolling on the ground and make it all happen.

Fantastic views from 2 different people. It has somehow stayed with me, even after a week. :)

On Wally and an Organization's "Busy Quotient (BQ)"

This post really started from a Facebook interaction with my friends about a Wally (from Dilbert Comics) joke that I think really holds true in Organizations today.

wally: i didn't do any work this week because my project will probably be cancelled in the next budget cuts.
pointy-haired-boss: wally, i don't pay you to do nothing.
wally: i'm pretty sure you do. but i understand your confusion. i too was surprised by the first few years of getting paid for doing nothing. in time, ...doing nothing became it's own sort of challenge. i'm like a ninja with no hopes and dreams.

While I found the joke to be hilarious and identified with it completely (based on my work experience so far), I had some friends commenting that it really doesn't hold true anymore. This set me thinking...Why is that work seems slow (and non-voluminous) at some work places and why it seems busy (and voluminous) at some work places... To that effect, I have tried defining a Organization's Busy Quotient (BQ) with some variables...

Busy Quotient (BQ) Variables:
1. Size of the Company (S) = Bigger the size of the company, the lesser dependencies it wants on individuals, the workload & worklist gets divided into smaller & smaller units (as size grows) such that the show will go on even if one individual goes missing in the chain. In smaller companies, it is often the reverse scenario where an individual often holds more than 2-3 distinct responsibilities and is therefore always on the run, giving the impression that he is more busy than the rest of the market. I am counting 'structure of a company' as a subset of this variable as well.  

2. Lifestage of the Company (L) = The longer the company is in business, the calmer it's daily life becomes. Start-ups usually start out busy because there is a lot to be done even in the Administration Department. I won't even mention the amount of work that goes into core functions like Operations, Marketing and Finance. So, there is going to be a difference in "busy-ness" between an individual who is joining a company on Day 1 and someone who is joining them after 3 years.

In fact I am even reminded of some Mgmt. Guru Insight (I think it was Marshall Goldsmith) that if an individual is always overworked and is doing longer hours everyday, it is a problem either with the organization structure or with the individual - that, it is not in synchronization with the stage of the Company.

3. Process in the Company (P) = The higher the process orientation of the company, the smoother the work flows throughout the chain. It is a simple truth that some organizations are methodical in their approach - about anything - and some are not. Lack of process orientation brings up many surprises, on a daily basis, where you end up doing more fire-fighting than value-added work. But, it still gives you the notion that you are doing a lot.

4. Culture in the Company (C) = There is a culture of "sitting late to look good" in some organizations and there is a culture of "only delivery matters" in some organizations. I am sure that companies which foster the 2nd chain of thought will easily be less busier than the other one. We all have heard about these reputations and we all have commented how the 2nd way is the way to live. Some organizations actually go ahead and do it (read: Best Buy's Results-Only-Work-Environment Story someday). Some organizations don't. They are not really interested in featuring in a "Best Places to Work" Magazine feature.

To summarize = BQ = S x L x P x C
I will spare us all into going for an exercise of assigning a computation methodology and coming up numbers. Then commenting on what's good and what's bad. I can tell you the summary without it as well, having worked with multiple organizations having multiple values for each of the variables above. And at different points in time.

The simple point is:
The more "Efficient Organization" will adjust the "interplay between these 4 variables very well" and come out less busy on an Average Day. And the Chaotic ones won't.
The operative word, at any given point in time, is "interplay". An organization is a dynamic organism and these 4 variables keep changing on a daily basis. A rapidly changing BQ only indicates inefficiency and inability to manage complexity. The trick is keep balancing them out 'consciously' day-in and out - to maintain a steady Busy Quotient over time. The focus to balance these out must have as much importance as one might have on the actual deliverables of the job. Why not!?

With whom does this ownership lie with? Every Individual. CEO as well as the Trainee.

"Social Shopping" is Here!??

I came across this article on Fortune Magazine:
http://postcards.blogs.fortune.cnn.com/2010/02/23/google-vet-snags-a-ceo-job/

The company in focus of the Article is: Polyvore

• Polyvore invites users to assemble and display collections of items–clothing, shoes, home goods, and more–to see how they look together. For a Polyvore user, the transaction component–buying opportunity on sites like Saks (SKS) or Neiman Marcus or Net-a-Porter–is only a click away.
• The idea was to marry commerce and community, providing a better visual display than you can find on other websites. Some 6 million unique users visit Polyvore each month, he says, to mix and match items from any online store and create personal collections, or “sets” as the company calls then. Users create 30,000 new sets daily.

This is like "Threadless meets Facebook meets Amazon" to me.
Very Interesting Concept. Very Interesting Company that I will continue to Track.

"Open for Business" - Best Buy's Social Technology Strategy

Best Buy is one retailer that I truly admire and for a very simple reason:
They're really innovative, bold and quick to execute on their ideas, without being afraid of making mistakes. Just to name a few of their pioneering initiatives: Geek Squad, Multi Channel Retailing, ROWE (Results-Only Work Environment), Store-wise Profiling... they surely have come up with some of best ideas in the Retailing world.

On the same lines, check them out now discussing their "Social Media Strategy" on a Youtube Video: "Open for Business" - Best Buy Social Technology Strategy.

Seeing this, I can easily say they are miles ahead of anybody else in the Retailing World. And what is impressive is their philosophy behind it, nicely summarized in this Article here: Open for Social Business by Bant Breen. 

It says this about Best Buy:
Going forward, a key characteristic for successful business formation and development will be how a company flips over the sign on the door and shows itself to be open for social business.
Some Companies (like Best Buy) open access to management. Best Buy's CMO Barry Judge shares his thoughts, addresses customer ideas, involves customers on business activities and informs on company happenings of note on his blog www.barryjudge.com. One recent action of note was Judge's choice this past summer to invite his blog readers to participate in writing the job description for the Senior Manager, Emerging Media Marketing post. Socially open leaders are willing to be led and advised on the best solutions and the right path to take. Before it was CEO knows best, and now it's let's listen to my employees, listen to my customer, my detractors and my fans. In such a model, managers act as powerful filters of concepts, instead of innovation agents themselves.

When will Indian Retail get here? They ought to know that these initiatives are possible in real-time and can be executed in parallel with their "Brick-and-Mortar Plans" - Today.