In the classic 80’s film “Say Anything,” John Cusack’s non-jock, outsider character is asked how he got Diane Court, the most elusive girl in school, to go out with him. After stating the obvious (“I called her up”), he ultimately responds with, “I’m Lloyd Dobler.”

Who you are matters.  Not just what you make or sell (or process), but who you are.  

Most successful marketing companies and ad agencies talk about the importance of “defining your brand personality.”  But this misses the point.  I don’t define my personality as Nancy.  I am Nancy.  That means that everything I do, and don’t do is who I am. Everything. That defines my personality.  Not what I say my personality is. 

Similarly, many companies talk about the need for a mission statement.  But again, this misses the point.  Too many mission statements read like a soulless, uninspiring corporate-speak: “Be the leading, most respected manufacturer of blah blah blah.”  Hardly the catalyst that will inspire people to immediately stop what they are doing and buy your stuff.

So, who are you?  What matters to you as a company? 

Patagonia gets it right.  They talk about their mission in terms of “Our Reason for Being.”  Strong words that mean something real. Patagonia’s Reason for Being is to “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”  It is clear.  I know who they are. And, because of this I choose them over other options. 

But it isn’t just what they say – it is what they do.  And don’t do.  Their Reason for Being is reflected in everything:

It is reflected in how they source and manufacture their clothing.  They created “Footprint Chronicles” allows people to track a product’s impact from design through delivery. 

It is reflected in their efforts to minimize waste and (incredibly) consumption.  Beyond encouraging customers to make repairs themselves, Patagonia takes back their products even after years of use for free (or affordable) repair or replacement. They even went so far as to run a Black Friday ad urging people to NOT buy a jacket or anything else that they don’t need. 

It is reflected in how they invest their grant and charitable dollars – participating in “1% for the Planet,” an alliance of businesses that pledge to give 1% of their profits to grassroots environmental groups.  

It is reflected in how they treat their employees.  They offer health benefits to everyone, including part-time, retail, and warehouse staff.  They even subsidize child care and counseling.

It is even reflected in their corporate governance.  California recently passed B Corporation Legislation, allowing corporations to formalize a triple bottom line approach to business (profits, planet and people).  Patagonia was the first in line to register with this new incorporation.  

Patagonia doesn’t have an “environmental steward” brand personality.  It is who they are.  

So, who are you?  

• What is your company’s Reason for Being?
• How is that reflected in everything you do?  
• Are there aspects of how you act as a company (to your customers, your suppliers, your employees, the planet, etc) that is inconsistent with this?

Lloyd Dobler would agree.  It is a dare-to-be-great situation. 

For more information on how Compass(x) Strategy can help you with your Reason for Being, email us at info@compassxstrategy.com.

This 1997 Apple ad has been on my mind lately. Not just because of the passing of Steve Jobs, but because I was surrounded by these crazy visionaries on two recent occasions.

In Mid-October, I had the pleasure of attending TEDx Midwest, here in Chicago.  If you haven’t been to a TED event, imagine an entire day filled with the incredible talks you watch on TED.com, interspersed with purposeful connection and networking time.  

Then, at the end of the month, I participated in the annual B Corporation Champions Retreat in Philadelphia. For those of you unaware of what a B Corporation is (B stands for Benefit), it is a new kind of company that uses the power of business to solve social and environmental problems.  Though new, the idea is rapidly spreading.  In just three years there are already more than 470 companies representing 60 industries and a combined revenue of $2.2 billion. Unlike traditional companies, B Corporations are legally required to consider the impact of their decisions on their employees, consumers, suppliers, community and the environment.

I feel fortunate to have been able to participate in both of these mind-expanding events, so thought I would take the opportunity to share a few learnings.

1. There is a big difference between companies that develop innovation strategies vs. those that are innovative.  So many writers and “experts” talk about the need to put innovation at the core of everything you do, but that is pretty useless advice, really.  What does that mean?  What does that look like?  Well, it looks a lot like San Francisco’s New Leaf Paper. Founded over 10 years ago, they had the modest goal of fundamentally changing the paper industry.  This is one tough industry – low margins, highly polluting and resource intensive. New Leaf Paper was the first to introduce many ground breaking products, including super-bright 100% post-consumer recycled papers, coated papers, book publishing papers and several other products that no one thought possible. As a result of their innovations, major paper manufacturers have had to follow in order to maintain relevance, and have enhanced the environmental design of their products. This is no Dunder Mifflin!

2. When business is conducted as if people matter, it turns out that they do.  Take for example Southern Energy Management a North Carolina-based sustainable energy company focusing on solar power installations and energy efficiency solutions. Even as a relatively small company, they gave all their employees a piece of the company through a stock ownership program.  So when the recession hit hard, both management and their nearly 100 employees committed to surviving together.  As a result of that, not only did they survive with no cutbacks, but the company today is thriving and growing rapidly.  In fact, they were just recognized as One of CED’s (The Council of Entrepreneurial Development)  25 “North Carolina Companies to Watch.” 

3. World changing businesses are led, not managed.  This is something that was a common thread among all the people I met at the B Corporation Retreat. Behind every company was a leader with vision, passion, dedication and a just a little bit of obsession.  Rather than drone on with gushing stories, perhaps the best way to articulate this is through two powerful quotes stated by speakers at TEDx.  

• “Fear is ok.  Complacency will kill you.” – Alison Levine, Adventure Grand Slam explorer and mountaineer
• “Vision without action is a daydream.  Action without vision is a nightmare” – Pablos Holman, inventor and hacker.

So, please join me in saying “here’s to the crazy ones.”  I continue to be impressed and inspired by you.

Inspired?  Learn more about the crazy vision of Compass^(x) Strategy and B Corporations.  Ideas?  Let me know!

The 2011 Green Jobs Award program is run by the SJF Institute and Clean Edge. The SJF Institute connects, inspires and accelerates sustainable entrepreneurs and the fields that support them. Clean Edge, Inc, is the world’s first research and   advisory firm devoted to the clean-tech sector.

Compass X Strategy will be providing pro-bono brand growth and marketing strategy assistance to one of the winning companies.  Winners will be announced in November.  Stay tuned!!

Next weekend is Lollapalooza here in Chicago  – 140+ bands on 8 stages over three 10 hour days.  For those of you who know me well (or have been reading my newsletters), you know I am a huge music fan.  Which is why I put up with the heat, the crowds and the port-a-potties to spend three days enjoying some of my favorites bands and discovering artists that become my new favorites.  But here is the problem:  Sometimes there are too many choices.  In a given time slot, there may be two or more great bands playing at the same time.  One year, I decided to not choose – I can do both, I thought!  I’ll listen to some of the first band, then dash across to the other side of Grant Park and catch some of the second band.  Needless to say, it didn’t work. I spent so much time making sure I left on time that I didn’t fully enjoy the first band.  Then, it took me longer to the second stage, so I heard very little of that band, so I don’t really enjoy that either.  I should have just committed to one. They were both good choices.

When it comes to decision making, many companies face the same issue.  Especially when it comes to choosing who it is you want to target.  Take for example, a hypothetical law firm.  They could get a lot of business with manufacturing companies, or advertising agencies or tech start-ups or any number of other types of businesses.  “We shouldn’t limit ourselves,” they say.  And so they make a website that speaks to everyone and make cold calls and send direct mail pieces to everyone.  And, as you can imagine, it doesn’t work.  Their attention and dollars are spread too thin to really connect with anyone.   Business doesn’t grow and and the leadership team agrees that sales and marketing don’t work.

So how do you choose?  How to you ensure that you boil it down to the good choices and then commit to only those that will deliver the best results.  Here is a way to get a few people together and work through the process.

1. State your goal. What does success look like?  Five more clients? 10 new business presentations?  100 inquiries?
2. Determine your criteria. What is important for you to know in making this choice?  Market size?  Profitability or margins?  Ease (in time and money) to make it happen?  Determine how you want to evaluate before you start.
3. List the options and evaluate. Put the options through the criteria outlined. Evaluating can be as simple (red/yellow/green) or as complex (numerical scores with weighting of the criteria) as you would like.  It doesn’t matter.  Just have some pre-set standards.
4. Make a decision. Once you have been through the evaluation, some ideas should rise to the top over others.  Choose and move forward.

Good luck and have fun.  And, if you are at Lollapalooza next weekend, you can catch me at the Budweiser Stage.  Or the Playstation Stage.  Or…..

For more information on conducting a targeting workshop or other strategic decision making tools, contact us info@compassxstrategy.com.

When I was 13 years old, like many Jewish kids, I stood up in front of my friends and family, read nervously from the Torah, and publicly declared (mostly symbolically) “Today I take my part in adult society.”  This week, I stood up and made another declaration. Thankfully, this time my teeth are straighter and I have outgrown my teen gawkiness.  This time, I publicly declared my values.  Today, I declare that I believe business can be better.  That business can be a force for good.  Today, my company  has become a  Certified B Corporation.

A B Corporation (B stands for Benefit) is a new kind of company that uses the power of business to solve social and environmental problems.  Though new, the idea is rapidly spreading.  In just three years there are already more than 400 companies representing 50 industries and a combined revenue of $1.5 billion. Unlike traditional companies, B Corporations are legally required to consider the impact of their decisions on their employees, consumers, suppliers, community and the environment.

B Corporations have become a legally recognized corporate structure (like a C corp or an S corp)  in Maryland, New Jersey and Vermont.  Six other states have legislation pending.  Additionally, the city of Philadelphia passed a tax break for Certified B Corporations in December 2009.

Why are states and cities getting behind this movement?  The City Council of Philadelphia found that B Corporations in their city provided more than just economic benefits.  The found that that good companies are good businesses.

- 44% offer some form of employee ownership

- They are twice as likely to offer health insurance and retirement plans

- 9 out of 10 are locally owned and are 3 times more likely to be owned by women or minorities

- 82% have programs for community volunteering

- 74% are affiliated with a local charity and are 30 times more likely to donate at least 10% of their income to charity

I am so honored to be a part of this community of forward thinking business leaders.  My 13 year old self would be proud.

Here’s how you can learn more about how Compass^(x) Strategy is being a force for good or about how you can begin assessing how your company can do more.

It is coming up on the Oscars, which is one of my favorite reasons to have a party.  I invite several friends and we eat Oscar themed food (Penne Zellwegger still reigns as one of my favorite food puns), drink cocktails, bet on the winners and dish about jewelry and dresses.  While planning this year’s festivities, I determined that I have two objectives for the party.  First, get people to show up.  Second, ensure that they have a great time and stick around (always a challenge when it tops the three hour mark).

Thinking about it, these two objectives are not just for party planning.  The same objectives hold true for businesses.  You want people to to be interested enough to try your service or product once and then stay interested enough to stick with you for the next purchase.  One of the most talked about vehicles for “getting people in the door” is Groupon.  There has been quite a lot of discussion, debate and controversy about them lately, with businesses griping about the fact that Groupon was a money loser for them. In fact, Rice University recently conducted a study about the effectiveness of Groupon for businesses.  While 66% of companies that did a Groupon (and responded to the survey), said it was profitable, a whopping 32% said it was a money loser and a bad experience.  People showed up once at bargain basement prices, didn’t come back and the company was disappointed.  But, like a good party, getting people to show up is only part of it.  Groupon (or any other incentive program) is not the holy grail, the magic bullet or any other end-all-be-all cliche.  It is a tool.  A tactic.  A vehicle that should be fully integrated with other marketing elements.

One company that understood how to use Groupon successfully is the Four Seasons Hotel.  The offer was $40 for $85 of fine dining in their restaurant.  A friend of mine went with several other people.  The hotel was thrilled that they were dining there for the first time.  As my friend was paying the remainder of the bill, the server asked her if she enjoyed her dinner at the restaurant.  When told that it was wonderful, the server asked if she wanted to sign up for their mailing list.  If she did, she would receive a gift certificate for her next dining experience.  Perfect.  She showed up, had a great time and was encouraged to come back and “keep in touch.”  She was so delighted by the experience, that she told everyone she knew about it.  Groupon got her in the door, but The Four Seasons made sure she would come back again. Well done.  (Postscript:  The Four Seasons dropped the ball on execution.  She never got an email, nor a gift certificate, but that is a topic for another issue).

So, before rushing to implement any “get em in the door” stand alone tactic, Groupon or otherwise, ask yourself:

• Who do you want to buy your product or service?  The more descriptive you can be about your ideal client or customer, the better you will be able to design an effective promotion.
• How do you ensure that your desired customer has an ideal experience once you have their attention?  The Rice University study suggested that one of the biggest drivers of Groupon effectiveness, was having the right amount of trained, happy employees to deal with the sudden rush of customers.  This is true for any promotion.
• What would inspire your desired customer to come again or have a follow up conversation?  Steven Covey talks about “Beginning with the End in Mind.”  Think about what comes next before executing what comes first.

Good luck!

Yours in Black Prawns and True Grits,

Nancy

I loved Saturday mornings when I was a kid.  My sister and I were devoted to Schoolhouse Rock (Interjection!) and The Superfriends.  In general, I never considered my self a superhero fan, but there was something about the Superfriends.  Mostly, I was in awe of the transformational powers of the Wonder Twins.  “Wonder Twin powers, activate!  Form of…”  Watching them use their powers to do or be something different was mesmerizing.  I didn’t realize it then, but what I have come to realize is that they were actually quite deep. They acted with purpose.  They stated their intentions aloud (“Activate, form of….”).  They committed to it.

So, in Wonder Twin fashion…. “Business, activate!  Form of….good citizen.”  I like it.   Now, how to make that happen.  Obviously, it must start by doing good work.  Whatever it is you do, do it well.  Make your customers, patrons, or clients deliriously happy.  Deliver a positive return on their investment.   Make their lives and their businesses better.  Is that enough?  Can business also be a force for good?  Some will say that if the purpose of a business is to make money, that spending more to be force for good to the planet and community doesn’t make financial sense.  But here’s the thing.  It does.  Studies show that companies that take care of all their stakeholders (employees, customers, suppliers, the community, and the planet) actually do a better job of delivering returns to their shareholders than those that just focus on  the bottom line.  If you are interested in learning more, check out the book Firms of Endearment.

Here is my challenge to all of you this holiday season:  are their ways your business can use its powers for good?  What are the 2-3 things you can do in 2011 to build your business while being a better corporate citizen.  I would love to hear your thoughts!  You can email me at nancy@compassxstrategy.com, post it on FB or tweet it out to the universe.  Just put it out there.

Since I am asking this of you, I should tell you how I am continuing to activate Compass^(x) Strategy as a force for good.  In the past year, I have taken actions to move my website to a server run on wind energy.  I have donated countless hours of pro-bono work to worthy causes and awesome start-ups.  And, I am pleased to announce that beginning next month, I will be donating 2% of every project’s consulting fees to charity.  Where the money goes is up to you, my 2011 clients. You choose.  To learn more about how this works, check it out on my website where we discuss our Mission and Guiding Principles.

Jayna, Zan (and their Space Monkey Gleek) should be proud.

I have been thinking about distractions lately.  Not only about how I am often distracted, but how politicians and businesses get distracted.  Usually by the things that don’t really matter.  As I started writing this, my mind wandered (!) to a quote that I thought was relevant.  “Don’t waste your time with the flashy tentacles just because they’re waving around trying to get your attention.  Go for the center.”

These pearls of wisdom come from Xander Harris, friend and sidekick to Buffy the Vampire Slayer.  Apologies for the uber-geeky reference, but I have always loved that line.  As with many things about that show (don’t laugh), it is far more insightful that it first seems.  The fact is that many companies of all shapes and sizes spend a lot of energy dealing with attention getting, flashy symptoms, rather than going for the center, the root cause of the issue.  And, the flashy symptoms are rarely the things that need solving.

So how do you get to the issue that needs solving?  How can you distinguish between symptoms and the center?  I propose three questions to help.  If you (or the key people involved) cannot answer any of these questions then you are swinging at flashy tentacles.

When thinking about a new product, website redesign or any program, can you answer the following questions?

1. What is the objective?  Specifically, what are you trying to accomplish with this?
2. Who is the intended user and purchaser?
3. What are they currently doing/using and why would they switch to you? What is in it for them?

Certainly, it is possible that the advertising agency is doing a bad job and the website  needs redesigning, and the customers just aren’t using the product correctly, and your sales people need more training.  But, all of those things are probably just the flashy tentacles that are distracting you from the issue at the center.

Take The Gap, for Example.  They have gotten a lot of criticism lately for their crowdsourced logo redesign last month.  And The Gap deserves criticism.  They revealed their new logo to much fanfare only to undo the decision the next day when people revolted.

But the thousands of people that are attacking with them with comments like “[the logo] looks like something I could do in powerpoint,”  “they walked away from an icon” or “design should not be crowdsourced” are missing the point. The newly launched (and quickly un-launched) logo is not the real problem.

The Gap has had (at least) five years of sales declines.  To counter those declines, they have hired and fired multiple ad agencies, that created multiple expensive new campaigns. The clothing itself, once known as casual clothes for a generation that rejected stuffy officewear has become me-too.  They have become followers with trendy clothes and yoga wear. And of course, the logo redesign.  Swinging at flashy tentacles!

It is easy to pick on The Gap.  But while their issues are more publicized (and mocked) by others, they are not alone.  Think about your company.  What are you working on that may be swinging at flashy tentacles?

Authenticity and Clarity in Consumer Marketing

Reality shows are about drama.  Screaming, name calling and a fair amount of slurred expletives. I’ve been noticing lately that this drama is carrying over into the “real world,” and I must say that I am disappointed.

A recent tweet by a member of the Chicago Green Community read “Local chef slamming farmers’ markets and local food sourcing…”  When I clicked on the link, there was an interview on ABC News with a Chicago Celebrity Chef who, with a great deal of disdain, said that he did not subscribe to the “organic and local” ingredient philosophy.  As you can imagine, this sent the environmental community into a mad frenzy. Tweets were tweeted.  Comments were posted.  Expletives abounded.   I’m not going to get into a “he said, she said,” – I abhor the faux-drama of reality television, so I am not going to pile on here.  But I reference this reality-TV worthy smackdown to make an important point.

The fact is, that when you dig under the ridiculousness of this “debate,” there are some very real and very complex questions that should be discussed, but aren’t.  For example, how local is “local?”  One hour by truck?  Two?  Six?   I don’t know.  Should I, living in Chicago, choose the organic apple from Michigan or the non-organic apple from Illinois?  I don’t know.  Can I assume that because a farm is local, that the owner treats his workers with dignity, respect and a fair wage?  Sadly, I can’t.  The reality (in the true sense of the word), is that these statements and claims that go no further than what fits on a bumper sticker are dangerous and confusing.  Even when they come from a place of good intentions.

So what are we as marketers to do?  Short, sweet and easy to remember are critical components of taglines.  Does authenticity mean long, complex qualified statements written by a team of lawyers?  Of course not.  Pithy taglines work.  They just should be backed up by real information and facts.  This isn’t asking too much. A green claim is a claim like any other.  It has to be defensible.

Take Chipotle. In addition to the fact that they have good, fresh fast food, I think they are at the forefront of how to handle “social good” claims in an authentic, honest and still compelling manner.  Their tagline “Food with Integrity” is catchy and compelling, but is backed up with honest information about what they are (and are not) doing.  They focus on three areas:  animals, people and environment, and provide information on what they are doing in each of these areas.  In the area of food, for example, they recognize that local and organic sourcing is a complex issue that should not be treated lightly.  They provide data about what percentage of their ingredients is organic and/or locally sourced.  But then they say this: “Organic is great, but it’s not always appropriate for the food we serve.  Sometimes we can find farmers who focus on responsible or sustainable practices but aren’t certified organic. We make that call market-by-market, ingredient-by-ingredient, always keeping the big picture in mind.”  I think this is fair, honest and good business.  They have guidelines and a code.  When they can do even better, they do.  Even when Chipotle chooses an ingredient that  is not organic, their standards are still quite high, and their rationale is clearly articulated.

Because they are clear, there is no need for a headline that reads “Burrito Chain Slams Organic and Locally Sourced Food!”   I commend Chipotle for their approach. Because they have made these claims, they are inviting public scrutiny.  People are watching, and holding them accountable to their promises.  This “contract” with their consumers, as with all brand promises, is not only good “green” marketing, but it is just good marketing.  As for the extremists on both sides of this “debate,” communicate with more authenticity or you will all be voted off the *bleeping* island.

On May 13 of this year, Microsoft launched The Kin – their latest entry into the mobile market (you can see their website here).  Just 48 days later, Microsoft killed The Kin.  After spending tens of millions of dollars on advertising, $500 million to acquire a small tech design firm, and countless dollars and people on development, the product was discontinued due to dismal sales.

It is easy, I believe, to criticize others for their failures.  And many people have been having a lot of fun blasting Microsoft on this one.  What is harder, but far more productive, is to analyze the situation to determine what we can learn and make our own efforts better.  But first, a bit of background on the KIN.  The product was targeted to “15 to 30-year-olds who are social-networking enthusiasts,” said Robert J. Bach, president of Microsoft’s entertainment and devices division, at the KIN launch.   However, as most reviewers aptly pointed out, given the functionality and design, the “bullseye” target is at the younger end of the spectrum – high school and college students.  The insight at the core of the product is that social life and self-expression are the “Social Generation’s” (Microsoft’s term) biggest priorities.  Therefore, the Kin was developed as a people/friend driven device, rather than an app/function driven device.  It was available through Verizon for $49 for Kin One and $99 for Kin Two (after $100 rebate), plus required data plan.

Where did Microsoft go wrong?

Let’s start by saying that Microsoft does deserve some credit.  The phone was based on a real consumer insight about how younger people use their phones/PDAs.  Microsoft conducted thousands of interviews with their target audience to understand how they interacted with their friends and used their mobile devices.  That is new behavior for Microsoft and they deserve credit for asking questions before diving into development.

However, one social insight does not an entire product make.  This is especially true for technology products.  Specifically:

1.  What people say and what people do are not always the same thing.  As a result of listening to their audience talk about how much they love Facebook, Twitter and MySpace (really?), Microsoft built a device that has social media at its core.  Great.  But apparently, since no one mentioned how much they love using a calendar, Microsoft didn’t put one on the device.  Do people who love Facebook never have anywhere they have to be?  What a very spontaneous bunch the Social Generation must be!  The KIN has GPS, but no map functionality.  Do members of the Social Generation not get lost going to all the spontaneously fun events they hear about through their extensive social network?  Products must be designed based on what people really need, not just what they say.

Questions for your business:  Do you know how people want to use your products?  Not just what they say, but what they really want and need?  How are you getting the answers to those questions?

2.  Users and purchasers for this age group not the same people.  This device is targeted to high school and college students.   Great idea – it is an underserved market.  Except that high school and college students don’t buy their own phones or pay their own phone bill.  Microsoft was dependent on parents willing to cough up an additional $30 every month for a data plan just so their kid can be on Facebook.

Questions for your business:  What is the purchase decision process like for your products?  Do you understand who uses your products vs. who purchases or influences?  How does that change the products or surrounding services that you offer?

3.  Understanding what people are currently using is critical.  As I mention regularly, people are not sitting around helplessly waiting for a new product to arrive.  They are doing and using something.  In this case, the competitive set appears to be traditional mobile phones. And given the functionality of mobile phones, the KIN is a great upgrade.  However, The KIN is priced like a smartphone – both the device price and the required data plan.  And compared to a smartphone, it is severely lacking.

Questions for your business:  what are your customers currently doing or using instead of your product?  What will inspire them to switch?  What are the barriers to switching and what can you do about them?

It is not just enough to have an insight.  The key to success is understanding how to link the insight into a product that is truly relevant to people.  For information on how Compass^(X) Strategy can help your company translate a good insight into a good business, contact us at info@compassxstrategy.com