Matthew Kenney

Small Business | Workplace Law

Red, White and Basic

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As you review this web-site, you’ll notice a very basic outline. Red headings, white background, and black text. Might you wonder why? After all, where is the flash?

As an entrepreneur, I have been engaged in day-to-day marketing activities for many years. My MBA and doctorate both had marketing specializations, and I’ve taught many marketing courses over the past 17-years. Thousands of hours of my life have been dedicated to the study and practice of marketing. So why a red, white and basic web-site?

The primary reason: I have created a web-site for my clients, and they do not want a lot of fluff. They want simplicity and authenticity.

Here is an important marketing concept to remember: People do not all learn the same way. However, most people (95% according some research) will have primarily auditory or visual learning styles. My legal services –with the exception of hostile workplace actions — target entrepreneurs. Studies show entrepreneurs are predominantly tactile learners.

Entrepreneurs learn by doing. Again, they don’t want fluff. They want want practical content that is user-friendly. Highly visual and auditory content is appropriate for some clientele, but not many of my clients.

A secondary, but equally important, factor is functionality. While the data is still emerging, studies suggest that individuals with dyslexia (and similar neurological processes) are far more likely to choosing entrepreneurial career paths. These individuals benefit greatly when “visual noise” is removed. Simply stated, this web-site is designed with the entrepreneurial mind, well, in-mind. 

Do the vast majority of companies consider the needs of those who learn differently in their web-design? Not in my opinion. Those web-sites are designed by marketers for mass marketers. I am a lawyer serving a well defined market segment. If my web-site seems a bit basic by comparison, so be it. My clients will understand and appreciate my efforts…and that’s what truly matters to me.

Effective marketing isn’t about knowing what customers think. It’s about knowing how they think, and why they think a certain way. What I know without question, however: Customers want honesty, simplicity and authenticity. Clients want integrity, competence and qualifications in their service providers. My clients do not want flash, they want value and respect.

Throwing Away Negative Thoughts

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Have you ever experienced this: You have a negative experience and find yourself thinking about it for days, weeks or months? Perhaps you want to let it go — and not let it bother you — but negative, intrusive thoughts recur. Today we’ll offer you a tip from the science of psychology to help resolve this problem.

First Step: Make Your Thought Tangible & Write It

The next time you have the recurring, intrusive thought….write it down. Put pencil to paper and note what is bothering you, and why it’s bothering you. It doesn’t have to be perfect grammar as nobody else is going to read it. Just get the thoughts you’re having on paper.

Then, tear-up the paper and throw it away. When the thought returns — after you’ve thrown the paper away — catch it and think something like “I don’t accept this thought, I’ve thrown it away, and it no longer exists“. Sounds a little silly, right? Well, research funded by the National Science Foundation suggests it actually works.

When we make a thought concrete it becomes tangible. We can keep or discard it as with any tangible item. For example, did you ever have a jacket ruined by a cleaner? It bothered you then, but have you thought about it lately? Probably, not. You “let it go” because it’s only a jacket, after all. Have negative, intrusive thoughts ever done you any good? If not, get rid of them.

In Practice: We Think About What We Keep

The researchers in the NSF-funded study ran several experiments. They asked college and high-school students, for example, to write their thoughts about body image in 3-minutes. Half the students were asked to throw-away their thoughts, the other half to keep their written thoughts. Then all the students took a survey answering questions on a 9-point scale (e.g. like, dislike etc.).

The author summarized the findings as: “When they threw their thoughts away, they didn’t consider them anymore, whether they were positive or negative”. Basically, the findings showed those who kept the written words kept the thoughts. Those who discarded the written words also discarded the thoughts. To “let it go”, literally throw negative thoughts away.

If you have a negative professional experience and unwelcome, negative thoughts pop-into your mind…you now have a way to respond. Write the thoughts on paper — making the intangible tangible — and throw the paper away. If the thought pops back, say “I can’t entertain you…you don’t exist“. If the tip works, great. If not, what do you have to lose?

  • Reference:Petty, R. (2012) Bothered by Negative, Unwanted Thoughts? Just Throw Them Away. Association of Psychological Science.

(Copyright, 2017. Matthew G. Kenney. All Rights Reserved).

Danger in Discounting

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Ask any marketing educator or consultant his/her pet peeve and you might find this is it: They dedicate careers to studying science of marketing and their advice to students/clients is ignored. This phenomenon is especially prevalent when it comes to the topic of price discounting.

Marketing practitioners — especially those in retail — often like discounting because they see a cause and effect. Drop the price of widgets from $200 to $100 and watch them fly. When sales volume is slow, discounting gets people into a store or showroom. This is just common sense, so who needs an egghead academic saying it will harm their brands and make marketing more difficult in the long-run? Many marketers don’t want to hear discounting is dangerous because they either don’t believe it or don’t want to believe it.

Well, the egghead academics are correct. Here is what inevitably happens. Companies generally cannot make a sustainable profit deducting 30-70% off a legitimate price. So what do they do? They raise the price and offer a deep discount on that inflated price. They are enticing some customers to buy while making it harder for the company to earn a profit. You don’t have a profit when you give it away via discounting. When companies start marking up only to mark-down it’s a sure sign of impending doom.

There is a place for discounting in the marketing mix, of course. Discounting is an effective way of liquidating excess inventory; introducing a new product; and capturing consumer attention. It can also be used strategically to squeeze competitor price-points and margins. Nobody who teaches the science of marketing will tell you there isn’t a place for discounting. What they’ll tell you is this: Don’t over use this tactic. Doing so may potentially destroy your brand and your company.

Discounting is the marketing equivalent of a 3pm cup-of-coffee. The caffeine boost gets you through the day, but doesn’t address the core issue of why you don’t have enough energy. Where we see too much discounting we often see a culture short on innovation and entrepreneurial thinking. We also see a need for more business education. The more marketers understand about marketing science the less dependent they become on discounting.

For example, study-after-study proves that price is not the biggest factor in the consumer purchase decision process. It’s not even near the top. Perceived value is the biggest factor. The mistake in practice is assuming a lower price increases perceived value. It often does not. If you see a sofa discounted from $899 to $599, for example, do you really think that sofa is worth $899? Is that jacket marked-down from $379 to $165 really worth $379?

If price had this biggest effect on your purchase decision wouldn’t your home and office be filled with the lowest-prices alternatives for everything? Why didn’t you buy the cheapest tires for your car? Why not buy the lowest priced linens for your bed, or the lowest-priced food for your children? Why did you have lunch at Panera and not brown-bag it? It’s because perceived value, not price alone, is what’s driving you.

Marketing is a science, which means actions have predictable results. Discounting is a dimension of marketing science, therefore there are predicable results. If your company is relying too heavily on discounting to generate sales you need to solve the underlying problems. Look at your value proposition, advertising and pricing. If consumers will not buy a product unless it’s discounted, your price is either too high or you haven’t convinced them otherwise. Marking-up prices only to mark them down is a bad strategy. Chickens come home to roost. Take a free tip from one of those eggheads who studies this stuff for a living: You cannot trick the market in the short-term and expect to thrive in the long-term.

(Copyright 2016. All Rights Reserved).

Five Ways to Remember More

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Did you ever see a textbook filled with highlighted passages? Of, have you ever re-read the same passage several times in an attempt to remember it? When it comes to learning….both these efforts have been proven ineffective. Many people believe highlighting and re-reading works because it seems obvious. Yet, the evidence doesn’t support it.

If these techniques do not work that means the information we want to retain will not be there when we need it. It matters not what we’re attempting to learn. Knowledge is like a savings account: We can only take-out what we put-in.

So, how do we make sure the information sticks in our long-term memory? Over a century of research on this topic suggests there are five proven methods. Due to space restrictions we’ll synthesize the findings below.

In Practice: 5 Types of Practice That Yield Results

One of the best ways to recall knowledge is called Distributed Practice. This is a process where practice is broken into a number of short sessions. Think of it this way: A daily five-minute sales meeting will likely be more effective than a 30-minute weekly meeting.

Retrieval Practice is also effective. This approach utilizes short quizzes or tests. The same premise applies: A number of small quizzes will be far more effective than one big test.

Interleaved Practice is where we blend topics. Thus, 5-minutes learning about a Product A and 5-minutes learning about Product B will work better than 10-minutes learning about Products A & B.

Elaborative Interrogation means that we should be asking ourselves as we learn: What is the purpose of this effort, and how will it be applied?

Self-explanation is a technique whereby we teach ourselves without any assistance. For example, let’s say a supply chain partner doesn’t provide any selling points to assist your efforts (which is common across industries). What do we do? We must figure it out. Business doesn’t always come with a playbook. Sometimes we learn effectively by relying upon our own common sense and talents. The key is to not rely solely on intuition if possible.

Reference:

  • Roediger, H. (2013). Applying Cognitive Psychology to Education. Psychological Science in the Public Interest. 14(1). p. 1-13.

Do Yourself a Favor: Re-Define Failure

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nolan_ryan_in_atlanta_croppedBaseball fans likely know Nolan Ryan, and many can correctly identify him as the all-time leader in strike-outs (having struck-out 5,714 batters). But how many people know he is also the all-time leader in walks? Those who like baseball stats probably also know he threw a record 7 no-hitters. Yet, Mr. Ryan also had a career winning percentage of only 52%.

Nolan Ryan lost nearly as many games as he won. Do you think he considered himself a loser after he lost a game? It is doubtful. What do you think Elgin Baylor, Patrick Ewing, Charles Barkley, Ted Williams, Barry Sanders, Fran Tarkenton and Jim Kelly (all Hall-of-Fame inductees in their sports) have in common? They never won a professional championship. Yet, they all had lucrative careers. Are these men failures?

As professionals, we should never confuse what we do…with who we are. Nobody likes losing – be it a game or a prospective customer – but a game or sales presentation is only an event. Failing to achieve a goal does not make a person a failure. Professionals should learn from the experience, practice to sharpen their skills, and try again. There are many variables that affect the outcome of a goal. Unfortunately, personalizing set-backs is common in the workplace. We will not win today’s game if we are thinking about yesterday’s loss. So why do we spend time thinking about yesterday’s losses?

In Practice: Redefining Success and Failure

Do you want to be successful 100% of the time in business? It is possible, just redefine success and failure as follows:

  • Success = Giving the best possible effort 100% of the time, and maintaining an uncompromising commitment to professionalism.
  • Failure = Any effort that is less than our absolute best, and less than professional.

We cannot control what goes though a customer’s or colleague’s mind. But we can control what we put into their minds mind. An interaction does not have to result in a sale or new project to be a success. An interaction is a success when another person feels he/she has been treated with respect and dignity.

When marketing, not every prospective customer who receives excellent service will become a client. There are competitive, economic, sociological and psychological forces far beyond any sales professional’s control. But a successful customer service experience is 100% within each professional’s control. If we focus on service-quality success in every customer interaction the result will be increased sales. The key: Don’t define success as a profit. Define success as an exceptional customer service experience. Do this and profits will flow like a river.

(Copyright 2016, Kenney College. All Rights Reserved).

A Reason to Avoid Politics at Work

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politics

Our MBA students hear it early in their program: Try not to mix business and your political opinions (unless, of course, you’re in the business of politics). Doing so runs the risk of alienating some existing and future customers; and can cause needless drama within organizations.

Towards the end of their MBA, our students study research methods and learn why it’s possible — indeed even probable — that the same statistical findings can be used to support both sides of an argument. Let’s use the election recount in the news as an example:

– One candidate won the popular vote by 1.4%

– The other candidate won the electoral vote (57% to 43%) and 60% of the states.

Do you see how we can all look at the exact same data and arrive at different conclusions as to what is fair and unfair? The point: Statistics are meaningless until we understand our own biases. Evaluating statistics requires a commitment to objective analysis. Otherwise there is a temptation (regardless of whether our political perspectives lay on the left or right) to bend statistics to confirm our existing beliefs. That’s not the purpose of statistics, and it’s partly why political debates shouldn’t take place at the office.

Here is an example we use in our research discussions to illustrate this principle: 35% of American adults are overweight. That’s the data, which is undisputed. Now, is this an opportunity for health food or junk food manufacturers? The answer: It’s an opportunity for both. The opportunity is not determined by the data, rather our interpretation of the data. That interpretation will be influenced by many factors.

So, what do we advise students and entrepreneurs to do? Use statistics, of course, but use them carefully and objectively. Avoid using one stat to rationalize an argument as very few issues are simple enough to be explained by statistics alone. This is especially true when it comes to political issues. It’s generally best to keep politics out of the workplace (unless you’re in the business of politics).

Overcoming the Knowing / Doing Gap

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There is something known as the knowing-doing gap, which many entrepreneurs will experience during their careers. This phenomenon occurs when we know we need to do something to achieve a desired outcome, but we do not do it. Today we will discuss the science behind developing positive habits.

Developing Healthy Habits

In 1960, a plastic surgeon named Dr. Maxwell Maltz published a book called Psycho-Cybernetics. In the book, Dr. Maltz wrote how he noticed it took his patients – on average – 21 days of repetition to form a behavior that becomes automatic.  However, there was no scientific evidence supporting this statement.

It is not uncommon for misconstrued research to get re-stated so often it’s reported as fact. This is one of those facts that gets shared a lot without a basis for truth. While the intention is positive…the evidence is underwhelming that people generally develop a habit it 21 days. Yet, people do develop positive habits. So, is there a magic number of days?

In 2010, British researchers launched the first scientific attempt to determine how long it takes to develop a positive habit. Their findings: It might take as little as 18 days, or as many as 254 days to form a positive habit (depending on the complexity). On average, it takes 66 days of repetition to ensure a behavior becomes automatic.

Developing Great Entrepreneurial Habits

A habit is simply a behavior. Outcomes are achieved through behaviors. Therefore, to accomplish desired entrepreneurial objectives we need habits that will result in the desired outcome. So how do we develop these habits? The answer appears to be practicing the habit for 66 days (or about thirteen 5-day work weeks).

As we practice, something interesting happens within the human brain: Desired behaviors become automatic habits. Scientifically, this process is known as automaticity. It is really no different, however, than the “practice makes perfect” adage. If we will simply have the discipline to do what is needed, eventually our brains will map the behavior as a positive habit. The knowing-doing gap will be bridged.

If you know something needs to be done – but you are having trouble getting into a routine – try setting a 66-day goal. Dedicate time each day towards your objective. You may find it challenging at first. However, force yourself to do it every day…starting today. Soon you’ll have an ingrained habit that generates positive rewards.

Customer Service vs. Consumer Service

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ppbh-imagesThe word customer derives from “customs”, which derives from the Latin word “custumarius“. Historically, a customer was one who had been authorized — often by Royal Authority — to bring goods into a country via a Custom House. For the last 500 years or so, the meaning of the word customer has been generalized to mean a person with whom you do business.

Using this contemporary definition, we should ask: Who are the people we’re doing business with daily? We do business with buyers, of course. But we also deal with vendors, colleagues, prospects, community members, and government agencies etc. Therefore, every person we do business with is a customer.

The logical inference: We should provide customer service to all people (because they are all customers), not just the small percentage of people who exchange money for our products or services.

Practical Tip: See Yourself as the Customer’s Customer

Think of it: If “every person we do business with is a customer”, then you are your customer’s customer. As a customer, do you expect to be provided with excellent service? Do you want to be treated with dignity and respect? Do you want the type of opportunities that have been afforded to others in the past?

To get those things, you have to give those things. Begin by treating everyone the same way. “Customer service” is not synonymous with “consumer service”. Customer service is about treating others the way you want to be treated. Customer service is essentially professionalism-in-action.

As professionals, we need not take a narrow view of customer service (i.e. only satisfying buyers). Growth occurs when everyone is seen as a customer, and collective talents are focused on satisfying all of the company’s customers…both internal and external.

(c) Copyright 2016. All Rights Reserved.

“The function of education is to teach one to think intensively and to think critically. Intelligence plus character – that is the goal of true education.” – Dr. Martin Luther King, Jr.

Actions Speak for Themselves

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Imagine this: You are walking down a sunny London street one day, minding your own business, and a barrel of flour falls from above and cracks you on the head. You wake up resembling the Pillsbury Dough-Boy with a concussion. What can you do about it? Until 1863, nothing if you could not demonstrate who dropped the barrel.

The above experience happened to a Mr. Byrne. The court said he had no case against one Mr. Boadle, who it seemed allowed a barrel to fall from the second story of his store (but nobody admitted to it).

Following tradition, the British Court said Mr. Byrne had no case because he could not prove the barrel fell from the Mr. Boadle’s building.

This had been the rule for centuries. Mr. Byrne, however, had the good sense to appeal. After all, this couldn’t be justice. The British Court of Exchequer (similar to our Appeals Court) agreed and cited, for the first time, the doctrine of res ipsa loquitur: The thing speaks for itself.

Barrels of flour do not just fall from the sky like snowflakes. Somebody goofed. What the court was saying: We can assume the most logical cause even if there is not absolute proof. Accidents happen. Mistakes happen. Some things are so obvious that we don’t have to think about it…the thing speaks for itself. So, how might this doctrine apply to career development.

In Practice: Look to the Obvious Causes of Success and/or Career Stagnation

Management and marketing are sciences, both of which can get complex. There are a lot of moving parts. Yet, there are a lot of simple things we can do too. Here are just a few:

  • Absenteeism – How are people going to advance in their careers when they are not at work?
  • Punctuality – Will someone gain the trust of leaders if they are often late?
  • Focus – Does checking Facebook while on-the-clock seem like a smart career move?
  • Customer Service – Do we really need marketing research to tell us happy customers are more likely to return?
  • Respect – Isn’t it obvious that the way to gain respect from others is to give respect to others?

Remember, res ipsa loquitur….the thing speaks for itself. Let the things you do speak on your behalf. When we are present, focused, respectful and customer-oriented…business really does get easier.

Reference:

  • Byrne v Boadle (2 Hurl. & Colt. 722, 159 Eng. Rep. 299, 1863).
Copyright 2016. All Rights Reserved.

Beware of Bad Advice on Linkedin

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I like Linkedin. However, as an educator…I feel it might be doing more harm than good. The problem I see: Well meaning professionals want to teach others without a fully developed understanding of the sciences of management, marketing, or communication etc. The possible result: Readers implementing bad tactics in practice.

For example, I recently reviewed a post by a self-proclaimed “sales expert”. He excoriated a “rookie” sales professional for simply calling to “touch base” with a client. The author’s contention was that sales professionals should only call customers when they have something of value to provide. Otherwise, it’s a waste of time. Lots of people liked this opinion, but some readers did not. Those who didn’t were correct.

Quick question: Have you ever called a friend or relative to “touch base”? Of course, you have. This is how we build and maintain relationships. Professional relationships are no different. The author resents such communication because he is “busy” and if there is no substance to the message…he deems it a waste of time. He refuses to return such calls or emails, and advises others to do the same.

Let’s dissect this argument scientifically. Lot’s of people are busy, but few are truly “productive”. In fact, many workers are busy and counter-productive. Do you know when online newspaper readership spikes? Monday-Friday between 9am-5pm. Studies show workers are operating at about 40-50% of their potential productivity across industries.

If you’re too busy to speak with a vendor who is making a good faith effort to communicate, you need to assess your priorities. How many buyers churn through vendors because they never take the time to build relationships? The result: Needless system changes, which employees universally tend to dislike. Plus, refusing to speak with people who honestly want to help your company is simply rude. Somehow, American business culture has evolved to the point where it’s acceptable to disrespect sales professionals. This phenomenon is further proof too many people in business simply don’t know what they’re doing.

Remember, management and marketing are inextricably linked. There is always a negative ripple effect within organizational behavior when vendors are treated rudely and/or without empathy. Readers who took that author’s advice will likely be hurting their companies and careers because they took myopic advice.

Here is what readers should remember: Case study findings are not generalizable. Case studies have some qualitative research and educational value, but never make the mistake of assuming what works in one culture will work in your culture. If you want to make better decisions….use research findings that are rooted in the business sciences. These approaches will — if properly assured of validity and reliability — help you predict the outcome with 95%+ probability.

What I often see in Linkedin posts is perspectives from people who’ve been in a particular silo for a long-time. They may be experts on particular aspects of marketing or management, but lack expertise in the areas that will be affected by their advice. That is, a sales expert probably doesn’t understand the effect on HR; an accountant doesn’t anticipate the effect on sales; an HR leader doesn’t anticipate the effect on consumer behavior etc.

For example, someone with 20-years experience in corporate cultures might not realize their suggestions are not applicable to a small business culture. Therefore, a small business owner (or employee) should take caution when taking advice from an author with corporate experience. Advising a small business owner not to call clients periodically to “touch base” is not good advice. It borders on moronic, actually. Yet, without a filter or method of assessment…this advice is read and, possibly, implemented. The legitimacy of content is somewhat validated by Linkedin’s brand, which is scary.

Social media is not college, and most posters are not professors. Be careful when applying advice from anyone isn’t familiar with your company’s culture; or who isn’t credentialed insofar as predicting the effects actions in one area of an organization will have on other areas of the business.

(Copyright 2016, Matthew G. Kenney. All Rights Reserved).

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