All posts filed under: Leadership

Waiting for the uplift

By Mark Di Somma

I once had a flatmate who was a pilot. He used to fly these ridiculously small planes in and out of crazy airstrips throughout Papua New Guinea. Every take-off, he used to tell me, was almost literally a leap of faith. You barrelled down a ramshackle runway in the middle of the mountains, literally fell off the end and waited for the winds to pick you up. He used to come home from an assignment, throw his bags on the couch, and announce, “So far, so good”. For some reason, I thought about Simon today as I read this article about the fall of Martha Stewart Omnimedia (MSO). What a long way down. In 2005, Martha Stewart’s publicly listed company was worth north of $1.8 billion. Since then, the stock has plummeted a whopping 88%. Now it looks like it may be up for sale – maybe even revert to private ownership – at a fraction of its peak worth. Sure, they’ve been some contributing factors to that – conviction for Stewart herself and of …

The effect on Oprah?

By Mark Di Somma

We’ve all seen what the Oprah-effect has done for others. Now it will be interesting to see the effect of change on the O-brand itself. By changing the formula, how much does she risk tampering with the magic? Will another talk-show rise to fill the afternoon gap, or will the 40 million O-army decamp and migrate en-masse? Is that even possible? How much do the dynamics of a brand fundamentally change when you quite literally shift the channel in which it is seen?

Be happy

By Mark Di Somma

Not the best of days yesterday. Put my back out, and retired to a lie-flat position. Brain racing, body stopped … Aaaargh. To pass the time, I mused on getting my understanding of the purposes of business and branding down to their most basic forms. It led me here: What if the purpose of business, particularly a service business, is as simple as this: to make people happy. Imagine if that was the metric for your product design, your standards, your customer service, your innovation programme, your culture, your brand, your competitiveness. And what if the purpose of branding is to let people know how you intend to make them happy. Here come the objections: most of them variations of ‘we do that already’. No you probably don’t. If you did, you wouldn’t have effective competitors, you wouldn’t struggle to maintain market share, you wouldn’t find yourself locked in a pricing war. Perhaps you think they’re happy or hope they’re happy, or you word your customer satisfaction surveys so that you can tell yourself they’re …

Well, well, well

By Mark Di Somma

When place branding specialist Simon Anholt explains in a podcast why nations need a carefully thought through brand strategy to which all players in the economy subscribe, he quotes the legendary David Ogilvy who once said, “If all you want to do is attract attention, then you put a gorilla in a jockstrap”. As Ogilvy himself explained it, if you want to get recall, you then put the brand on the jockstrap itself. You will certainly get buzz, and people will remember the stunt. But will anything meaningful, in commercial terms, happen beyond that? Doubtful. And the reason is that having got people’s attention, you need to do something with that energy. You need to direct it somewhere. You must provide a meaningful story and experience that links what people have seen with what they do. It’s not enough just to give them something to look at. It’s as meaningless in branding terms as a carrot, a jumping trout or just another pretty logo. Badges aren’t brands. Of course Wellington’s already done a lot more …

What will LinkedIn link into?

By Mark Di Somma

LinkedIn finally goes public today. This is going to be fascinating – not just to see what this IPO for a name social media company gets, but also to see what investors themselves are buying into. Are they riding a media wave, as is suggested here, or do investors see real and continuing value in B2B networking? My suspicion is the former, and that’s not good. Long after the hype and the bullish sentiment of launch, it’s the latter that is going to platform LinkedIn’s growth. After all, being a social media company is LinkedIn’s channel, not their strategy. And we all know what happens when investors plumb for a channel at the expense of a viable way forward. Nothing I’m seeing in the press suggests a worked out plan to meet Wall Street’s expectations in that regard. In fact, quite the opposite. LinkedIn does not expect to be profitable in 2011 and its financial performance to date hasn’t exactly been inspiring. I raised this point last week about the Skype purchase and I’ll raise …

Portion control

By Mark Di Somma

Often we don’t leave a favourite brand because of anything dramatic. In fact, quite the opposite: the experiences we have quietly fade to the point where there’s less reasons to stay than to go. One day the food isn’t quite as good as it was, the movies on the flight haven’t been changed in a while, the person we spoke with just now was that little bit less warm, the changes in the insurance policy are more inflexible and the biscuits in the pack are smaller and taste different. Brands make these changes with the best of intentions for the business. They do it to save money, to introduce a shortcut, to be more efficient. It’s just a little change right, a little reduction – think of it as portion control. No-one will notice. And most people don’t. Unfortunately, the people who do notice are the people who have been loyal to the brand. They know where this is heading. Not today perhaps. Not tomorrow. But at some point, this is going to be yet …

Now playing

By Mark Di Somma

Slowly it seems everyone is coming round to the idea that content owners and developers and a new generation of distributors need to start working together. What interests me is how those content developers increasingly see social media as a valid outlet. YouTube has announced that it’s going to start renting more than 3,000 mainstream movies for as little as 99 cents each. That marks a real opportunity for quality shift for YouTube, from home videos to slick studio-quality product. But it also shows another move towards smarter monetisation of the social media model for both parties. The term ‘market share’ takes on new meaning in this context, in that it combines the marketable product of the studios with the massive sharing networks of the big social media outlets. One thing that YouTube, the film studios and Facebook share that I think offers real opportunities for these various emerging alliances to work: they absolutely understand the need to keep people involved and interested. Their presence and growth is predicated on that – even if they …

How to win

By Mark Di Somma

I’m always interested to see how successful people think and to learn how they go about building competitive marques. In 2009 – 2010, in the course of working alongside Alex and the crew at Milk on Will to Win, a history of the Pryde Group and its brands, I spoke with Neil Pryde many times. On a number of occasions, he talked about how he approaches running a global business. I thought I’d take a moment this morning and share with you the philosophies Neil shares in the book: 1. Strike the right balance between measured risks and natural optimism. 2. If you look back at your career and you’ve made more good choices than bad, you’re ahead. 3. Love what you do – but not too much. Too many businesses are wrecked by emotional decisions. 4. Be paranoid. Recognise that nothing is static. React quickly. 5. Never forget that sport is the business, and the business is a sport – always, play to win. 6. Always be prepared to walk away. If you’re going …

The power of interesting

By Mark Di Somma

I think we’ve all seen the movie about the ad agency that starts telling the truth only to find that business booms. Funny then how fiction turns to fact with news that in 2010, Domino’s US same-store sales rose 9.9% in a market where 1%-to-3% growth is closer to what’s generally expected. And the way they did it, according to Time, was by publicly trashing their old product, and encouraging consumers to check out the improvements they had made. That, it seems, got people back into the shop, intrigued by the admission and keen to taste what had changed. On the face of it, as I’ve said, this looks like a case for more truth in advertising, and of course to some extent it is. But I’m not certain that’s why the campaign actually succeeded – and I certainly don’t think it’s an approach that Domino’s could use again to such marked effect. What this story shows me, and what Susan Bonds’ speech reinforced last week, is that a generation notorious for its inattention will …

What do you do?

By Mark Di Somma

What do you do? – I write. Doesn’t just about everyone? – What do you mean by that? If you can form a letter in any language, you can write. What do you really do? … Here’s where this goes. Writers don’t write. Writers give people reasons to read. That’s what distinguishes them from people who can put things in writing. Speakers don’t talk. They give people reasons to listen. That’s what distinguishes them from everyone with the gift of speech. And photographers don’t photograph. They frame a moment in the world. That’s what makes their work different from someone with a mobile phone. The differences have never been more important in a world where so many people have access to technology that allows them to design, publish, print, record, point, click, template … What do you do, when anyone looks like they can do what you do? So often we want to base those differences on techniques. We do it better. Or history. We’ve done it longer. Or experience. We know more. Or frequency. …