Who’s Analyzing The Analysts

I remain troubled by the state of the analyst community. Companies, like the one I work at, pay serious money to companies like Forrester. Part of what Forrester provides is great research. But, another part of why we work with a company like Forrester is the “great” coverage their analysts offer. I use quotations around the word great, because honestly, I’ve been less than impressed with their analysis.

When Jeremiah Owyang worked at Forrester, my feedback to him was that he needed to be less buddy-buddy with the companies and people he was evaluating. Instead, he needed to be more openly critical. For what it’s worth, I still think Jeremiah needs to do that.

Forrester isn’t the only company that’s failed to offer honest, old school, real analysis. eMarketer, Nielsen, etc. have all stopped delivering the goods. Every analyst review reads like something our of Entertainment Weekly. There’s no bite. There’s no decisiveness.

Maybe I should take a step back and outline what I’m looking for in an analyst:

  1. Knowledge of the space or industry
  2. Clear understanding of what it is they are analyzing
  3. Honesty, integrity and the brutal truth
  4. A solid point of view grounded in facts

Here’s what I don’t want:

  1. A puff piece
  2. A middle of the road analysis that offers no conclusion
  3. Softened feedback to maintain a “friendly” relationship with the company or person

The reason we subscribe to services like Forrester is ultimately to make our lives easier. In theory, they’ve already done all the digging, uncovered the good, pointed out the bad and offered up a real analysis that helps me make solid decisions. What I’m finding more and more lately however, is that I’m having double and sometime triple check all the work being done by these companies and individuals.

Frankly, I don’t trust what they have to say anymore because I think the analysts clearly lack integrity. Yes, I said integrity. It’s becoming more and more apparent that these analysts refuse to be brutally honest because they’re fearful of upsetting the company or individual they’re reviewing. I mean, sure, I get it. If you’re a tough critic, what company is going to want to let you critique them…especially when they’re in beta. But, for those companies fearful of receiving critical and negative feedback, I say, “shame on you.” That’s right. Shame on you for having thin skin and clearly lacking accountability. If you were acceptable you’d value the feedback because it would help you improve. It’s that simple.

Michael Gartenberg is one of my favorite analysts. His feedback is always honest, grounded in insights, specific and completely relevant. With is recent announcement that he was joining Altimiter Group, I had to cringe just a little bit. I wonder, will he now be less inclined to be straight forward and often critical analyst he’s always been? Time will tell and I hope he does remain true to his roots.

What we have going on right now is a situation where the someone needs to be analyzing the analysts and keeping them honest. Who’s going to do it? It’s a thankless job. You won’t make a lot of friends in the industry. You probably won’t get invited to the hip SXSW parties or get access to the early beta of a cool new product. Nope, you won’t be getting any of those things. But, I do think you’d be getting the respect of the paying clients. People will like me and the companies I represent will be thanking you for having the integrity that clearly so many analysts have forgotten.

Maybe it’s time for a new breed of analysts or maybe it’s just a case of old being new again. Either way, we need a change.

Price vs. Value

It’s not secret that I think Chris Brogan might be the biggest snake oil salesman ever to walk the land.  The other day he might have jumped the shark.  Chris shared with the world his “day rate.”  Are you ready for what it is?  Sit down.  Get comfortable.  Please don’t have any water in your mouth as I am not responsible should you choke on it.

Ok, here we go.  Chris Brogan’s day rate is $22,000.00.

Did you just say WTF?  I know I did when I first read it.  Let’s break this down.  At $22,000.00 a day, he’s worth $8,030,000.00 per year.  What does that really mean though?  Let’s add some context shall we.  That annual “salary” would make him 2x more valuable than Drew Brees, 8x more valuable then Evgeni Malkin (and only 1 million less valuable than Sindey Crosby) and roughly the same cost as having both Dustin Pedroia and Kevin Youkilis on your team.  You might ask why I picked professional athletes as a comparison point.  Well I did it for two simple reasons

  1. The public often complains about the skyrocketing and out of touch with reality costs of super star athletes
  2. We’re passionate and attached to our super star athletes

Usually with athletes we have a way of comparatively reviewing them against their competition.  Whether this as at the contract negotiating table or the arbitration table, this happens all the time.  Athletes and owners will often lament that it’s not personal, it’s business.

Heck, even Chris argues, “Pricing. This isn’t black magic. It’s business. It’s commerce. It’s fairly basic.”  Well, he’s right about it not being black magic.  It’s right about it being fairly basic.  Let’s see how basic it is:

Price: Price is the starting point for what the owner/author/provider/etc. thinks something is worth.For example, the suggested retail price of Trust Agents is $24.95. That’s what Chris thinks his words are worth on a per book basis.

Value: Value is what the market deterimines something is worth. For example, this copy of Trust Agents currently being sold for $6.00 on eBay.  Hmmm…$6.00 sure doesn’t seem like $24.95.  Actually it seems like people value Chris’ words 75% less than Chris does.  Well it’s like Chris said, “This isn’t black magic. It’s business. It’s commerce.”  Well said.

I don’t begrudge Chris charing $22,000.00 a day for his “services.”  On multiple occasions I’ve asked him what those services are and what he’s actually done, but he’s yet to respond or provide any real backup to substantiate he’s capable of doing what he says he can do.  And it’s for that reason, that while Chris’ price is $22,000.00, I value a day with him at $1.05.  That’s the cost of a McChicken + Tax.  It seems appropriate, at least with the McChicken I know what to expect from the experience.

So, Chris is right, he charge what he wants and I can pay what I want.  Although, there seems to be an interesting gap between price and value doesn’t there :)

Simple Management Advice

I good colleague of mine sent this my way the other day.  Talk about visual thinking :)  It’s simple, but it makes you wonder why so many managers struggle with it.

For what it’s worth, I’ve used the same management philosophy for years.

  1. Inform: Provide your team member with all the information they need to make a smart decision.
  2. Recommend: Let your team member know how you’d handle the situation.
  3. Empower: The ball is in their court.  They have the info.  They know how you’d handle it.
  4. Support: Obviously course correct if things are heading for a train wreck.  But, assuming they aren’t support their decision.
  5. Review: Take a look back at the decision that was made, coach them on what could have been done differently and praise them on what they did well.

It’s not crazy.  But, it’s been really effective.

Inches

You have to love Al Pacino.  Only he could deliver this speech for Oliver Stone in the movie Any Given Sunday.  I love the sentiment, especially the concept that one second too soon or too late and you might miss it…whatever it is.  Think about that.

Covert Your Harshest Critics

I loathe to praise work done by the juvenile delinquents at Crispin Porter And Bogusky, but I think they’re really on to something with this new campaign for Dominos.  The new campaign includes spots featuring Dominos chefs going door to door to face their harshest critics.

The campaign is pure brilliance and even got me to order up some Dominos.  The new pizza is definitely head and shoulders above the flavorless cardboard they previously passed off as pizza.

Why is this brilliant?  Why do I like this campaign?  Because, Dominos is doing what every company should be doing…converting their harshest critics into hardcore fans.  Think about it.  In today’s crazy interactive age, tools and platforms give everyone a voice.  Unfortunately, that voice often seems to be used for either harsh complaining or amazing praise.  There’s rarely a middle ground.  Think I’m off my rocker.  Go to twitter and search “Delta.”

Are you back?  Good.  Are your eyes bleeding?  There’s a lot of disgruntled people.  And, you can’t make everyone happy.  But, what if you could pick the loudest, meanest, most dissatisfied customers and turn them into raging advocates?  They’re obviously already passionate.  They generally have a following…an angry mob of some sort that they’re leading.  Some have even already created a mini-groundswell (think Motrin Moms).

Let’s be honest, hardcore dissenters often outshout even the most ardent supporters of a brand or company.  It’s to a company’s advantage to flip these people into fans.  But, most companies simply ignore these folks.  I’ve been as big a complainer about Delta as anyone…well maybe not anyone…

But, rather than Delta trying to convert people like Tara and me, they’re puttin their head into the sand.  How does this make any sense?  It doesn’t.  This is like knowing you have rust on a car frame, but just ignoring it.  It doesn’t make the rust go away.  In fact, ignoring it helps ensure the rust spreads and eventually rots out your car…or perhaps in this case, your brand.

If you’re a company looking to find success in today’s ever changing and real time environment give some thought to investing in converting your harshest critics.  You just might find that small investment has a big ROI.

After publishing this, my good friend Michael Leis (a really freaking smart guy) sent me his interpretation of this idea from 2009. Like I said, he’s smart. Give it a read.

Some Political Humor

Usually I hate email forwards of jokes, but this was too good to pass up.

Dear Employees:

As the CEO of this organization, I have resigned myself to the fact that Barrack Obama is our President and that our taxes and government fees will increase in a BIG way. To compensate for these increases, our prices would have to increase by about 10%. But since we can not increase our prices right now due to the dismal state of the economy, we will have to lay off sixty of our employees instead. This has really been bothering me since I believe we are family here and I didn’t know how to choose who would have to go.

So, this is what I did. I walked through our parking lots and found sixty ‘Obama’ bumper stickers on our employees’ cars and have decided these folks will be the ones to let go. I can’t think of a more fair way to approach this problem.

They voted for change…….I gave it to them.  I will see the rest of you at the annual company picnic.

THE BOSS

Planting Flags

I like planting flags. I like scaling mountains that have never been climbed. I like doing things faster than anyone else. There’s a joy in getting to the finish line, breaking records and doing this that have never been done before. It can be tough sometimes to find new challenges. When that happens, I create my own obstacles to overcome…just for the hell of it. Lately though I feel like I’ve hit a wall. It’s not that I can’t find new challenges, new walls to overcome or places to plant flags. No, it’s something much more simple. I’m damn tired.

They say if you want to travel fast, go alone, but if you want to travel far, go with others. Well lately I feel like I’ve been traveling really fast, really far and with a large group. Trust me, it’s taxing. Maybe instead of tracking down every possible place I could plant a flag, I need to be more selective.

Where do you find your motivation and how do you choose where to plant your flags?

Whatever Happened To Please And Thank You?

Please and thank you. Simple words. Very simple actually. We’re taught these words at an early age. My daughter learned the words and when to use them before she was 2. On a daily basis she uses them. In truth, she probably uses them more than she should. But, I’m not about to scold her for overuse :)

So, why, if a 2 year old can understand the concept of please and thank you, can’t adults? Think about it. This isn’t some gross over exaggeration or a very wide brush I’m painting with. Think about your daily interactions with people. Whether those interactions are online or offline, we seem to have forgotten please and thank you.

Lately, I’ve become hyper sensitive to this phenomena. I took an inventory of people that I work with and engage with on a daily basis. I didn’t just look at the people I currently interact with, I actually took a 6 month look back. This inventory covered client meetings, social gatherings, family events, business functions and of course interactive communication. It’s times like this that I wish I had paid more attention to Business Stats 3001 so that I could have done some formal modeling to better represent my findings. But, seeing as I was busy playing intramural basketball, there won’t be any pretty graphs.

In lieu of graphs and charts, I’m just going to provide some simple raw analysis. Here’s the deal, the people who remember “please” and “thank you” are the people I enjoy spending time with. They’re the people who make me want to be be better…to over deliver for them. They also happen to be the most successful. Those who kind find the 5 seconds it takes to say please and thank you, are without a doubt the most selfish, self absorbed and disingenuous people I interact with.

I realize, I’m just a small sample size. I realize this isn’t scientific. But, I gotta tell you, in the spirit of Blink, my gut tells me I’m right on. Given how simple, quick and easy it is to say “please” and “thank you,” why aren’t we doing it more? What’s your daily interaction like? Are you finding a similar story? I’d love to hear about it.

Please share your feedback. Thank you. See that wasn’t so hard.

Books For Bowling

Today, we played hard for charity. The Junior League in Minneapolis organized great event today, Bowling For Books. It’s simple, really. You bring in your books. You trade them in so that kids who are less fortunate can have books. You eat pizza. You drink beer (well the kids didn’t). And, you bowl.

This was Cora and John’s first time bowling. I have to say, they were quite brave. There was no ramp and no bumper guards. Nope. We don’t use enablers or crutches at my house :)

I love bowling. It’s a simple activity that anyone can play regardless of age. As I was meeting all these new people and watching all these people engage with one another it reminded me of something very important. Real connections, real relationships and real conversations are way better than virtual ones on twitter, Facebook and the like. I mean think about it. You can’t share a beer virtually and have the same REAL effect. That alone makes it a more meaningful activity.

Get out from behind the computer, put the Nexus One down and start engaging in real life. You just might like it.

As you can see from the photos and video below, we had a great time.

Southwest Shows Us The Way

If you’re a normal person, you spent the weekend with your family, friends, relaxing, enjoying some well needed rest and relaxation, and tuning into the Winter Olympics. But, if you were like me, your eyes were transfixed on twitter instead of the TV. This weekend we watched a very angry Kevin Smith (yes, that Kevin Smith) vent his frustration at Southwest Airlines.

Let me give you the high-level version of the story:

  1. Kevin Smith is booked on a Southwest flight; he purchased two tickets…which equals two seats
  2. He changes the flight
  3. He flys standby…in flying standby he only has one seat, no longer two
  4. He’s a large man and does not fit into one seat; thus violating Southwest’s pre-existing policy
  5. Southwest kicks him off the plane, offers him a $100.00 voucher, and rebooks him on a later flight
  6. Kevin Smith launches an explicative filled tirade against Southwest on twitter

Southwest is known for great customer service. I, like many people, watched with fascination as Southwest tried to deal with the situation. Would they buckle under the weight (no pun intended) of Kevin Smith’s followers and clout?

Well, they handled the situation with calm, grace, honesty and most importantly EQUALITY. They offered up several tweets, phone calls and finally a blog post.  The Southwest blog has been inundated with traffic, which has ground their site to a screeching halt. With that in mind, here’s the full text of their blog post response to the situation.

NOT SO SILENT BOB

Many of you reached out to us via Twitter last night and today regarding a situation a Customer Twittered about that occurred on a Southwest flight. It is not our customary method of Customer Relations to be so public in how we work through these situations, but with so many people involved in the occurrence, you also should be involved in the solution. First and foremost, to Mr. Smith; we would like to echo our Tweets and again offer our heartfelt apologies to you. We are sincerely sorry for your travel experience on Southwest Airlines.

As soon as we saw the first Tweet from Mr. Smith, we contacted him personally to apologize for his experience and to address his concerns on both Twitter and with a personal phone call. Since the situation has received a lot of public attention, we’d like to take the opportunity to address a few of the specifics here as well.

Mr. Smith originally purchased two Southwest seats on a flight from Oakland to Burbank – as he’s been known to do when traveling on Southwest. He decided to change his plans and board an earlier flight to Burbank, which technically means flying standby. As you may know, airlines are not able to clear standby passengers until all Customers are boarded. When the time came to board Mr. Smith, we had only a single seat available for him to occupy. Our pilots are responsible for the Safety and comfort of all Customers on the aircraft and therefore, made the determination that Mr. Smith needed more than one seat to complete his flight. Our Employees explained why the decision was made, accommodated Mr. Smith on a later flight, and issued him a $100 Southwest travel voucher for his inconvenience.

You’ve read about these situations before. Southwest instituted our Customer of Size policy more than 25 years ago. The policy requires passengers that can not fit safely and comfortably in one seat to purchase an additional seat while traveling. This policy is not unique to Southwest Airlines and it is not a revenue generator. Most, if not all, carriers have similar policies, but unique to Southwest is the refunding of the second seat purchased (if the flight does not oversell) which is greater than any revenue made (full policy can be found here). The spirit of this policy is based solely on Customer comfort and Safety. As a Company committed to serving our Customers in Safety and comfort, we feel the definitive boundary between seats is the armrest. If a Customer cannot comfortably lower the armrest and infringes on a portion of another seat, a Customer seated adjacent would be very uncomfortable and a timely exit from the aircraft in the event of an emergency might be compromised if we allow a cramped, restricted seating arrangement.

I love Kevin Smith. I love his movies, except Jersey Girl. Mallrats, specifically, holds a special place in my heart. So, as you’d imagine, part of me was pulling for Kevin Smith. Initially…that is. But, as I watched Kevin Smith act like a petulant child, my allegiance switched. And, then after reading their official blog post response, I was 100% in the Southwest camp.

See, celebrities love to think they are above everyone else. You only need to read TMZ to see the countless number of examples that validate that sentiment. Where as many companies would have simply kissed Kevin Smith’s derriere and treated him with kid gloves, Southwest did something simple, but remarkable. They treated Kevin Smith the same way they’d treat everyone.

Southwest has a simple policy. Kevin Smith was clearly aware of the policy…seeing as he normally buys two seats. Those two simple facts alone make this an open and shut case. If Kevin Smith and every other potential and current Southwest customer wants to avoid this problem in the future they should simply put the donut down.

As someone who flies every single week, I can tell you that it’s simply not fair that I pay for a seat, but only get to use 2/3 of it because the person next to me is taking up 1 1/3 seats. This wasn’t a new policy from Southwest. They weren’t singling Kevin Smith out. What Southwest was doing was being simple, honest and fair. If only every company out there was like Southwest.