Witnessing how a business can self destruct
Being in Commercial Real Estate, I get to see and interact with a lot of businesses, typically in the startup phase, or at their go/no go decision point. Unfortunately, because of this, I also get to see how a business can self destruct. In that spirit, I thought it would be useful to do a self-help for businesses check list with ten basic steps.
How to build a great company
- Have a great plan.
This one is the most basic of them all. I mean draw it out not just in a business plan type format, but draw out everything. Communication channels, sales, and marketing channels, who key players are, etc. Create everything on paper and put it in the blueprint. Without the blueprint and the set of directions, how are you going to know what the finished product will look like?
- Accept interdependence.
Each department in your company cannot function independently. The accounting department can’t work without the marketing department, the marketing department can’t work without the mailroom, etc. No one division stands alone, and yes, that includes the leadership. All the departments are interrelated and cannot function independently.
- Vocalize the vision.
Sometimes things change throughout the lifespan of a business. The vision is not one of those. You need to have laser-like focus to keep things together, however, as a custodian of the vision, it is just as important to be the bullhorn. Make sure all members can articulate the vision of the company. This will result in all members exerting the company values to other members and to the customer base.
- Share responsibility.
If it’s no one’s fault, it’s everyone’s fault. It is up to every member to accept the responsibility not only for themselves, but for the department, the task, and the entire company. Likewise, the buck stops with each member because without shared responsibility for the company, the buck literally will stop.
- All decisions support the mission.
Put your self-interest behind the company mission. Always. All decisions must be made for the best interest and for the good of the entire company, not just for the task at hand, or what your department is working on, or for the size of the bonus you may get at the end of the year. Don’t just be mission critical, that’s short sighted, be company critical for long term growth.
- The money map.
Show me your budget and I’ll show you what your focus is. I know this one hurts, but it’s true – you spend resources on what you care about. You can literally draw a money map from start to finish and follow where the money goes, and what result you achieve. Now something about this you may want to reconsider: if the money is not being returned on your map, you should also be able to visibly see where the money is not going and therefore you should not expect money to be returned without investment. See how that works?
- Be results driven.
Evaluate your results on a line item basis. If your results are lacking, determine why and make changes as soon as possible. Train other members to do the same. Mark, measure, repeat. You’ve heard it said that if it’s not measured, it doesn’t get done. It’s true. Draw timelines. Draw results. Expect results.
- Revive to survive.
Get up and change seats! Never be afraid or set in stone that you can’t changes things up a bit. New blood is always good. Change the responsibilities and tasks around, find new strengths in others. Expect new leadership. Complacency kills. Switch things up sometimes.
- Never shut an open book.
No mission is ever finished. As long as a company is in business, the book is still being written. No job is ever done. Keep it that way. Even after a successful endeavor, go back and try to figure out how to make it better. Never stop growing and seeking new business channels as long as they all point back to the vision of the company. An open book should ever be closed. Besides, it’s bad luck anyway.
- Culture of accountability.
This sometimes gets lost among the day to day hustle and bustle. It’s vitally important to instill accountability measures and only accept accountability. If there is an area lacking in results, define the reason, accept no excuses. Hold people, the mission, and the entire company accountable for success. Help figure out why there is a deficiency and correct it.
By implementing these simple steps into your organization, every fiber of your culture will benefit and keep your business afloat. Complacency kills, and consistent grooming is a survival tactic. Take a look at your accountability, your methods, and your blueprints, and don’t just seek out weaknesses, attack them wholeheartedly.
Too connected: FTC eyes Facebook antitrust lawsuit
(BUSINESS NEWS) Following other antitrust hearings, we’re expecting to hear more about the FTC’s antitrust lawsuit against Facebook, soon.
Facebook might be wishing it had kept the “dislike” button.
On September 15, the Wall Street Journal announced that the Federal Trade Commission was preparing a possible antitrust lawsuit against the social media titan. Although the FTC has not made an official decision on whether to pursue the case, sources familiar with the situation expect a determination will be made on the matter sometime before the end of 2020. Facebook and the FTC both declined to comment when asked about the story.
The news comes following a year-long investigation by the FTC that has looked into anti-competitive practices by the Menlo Park-based company. This past July, the United States House of Representatives held hearings in which they grilled the CEOs of Amazon, Apple, Google, and Facebook regarding their business practices. In August, Facebook CEO Mark Zuckerberg also testified in front of the FTC as part of the department’s antitrust probe into the organization.
The FTC seems to be especially interested in Facebook’s past acquisitions of WhatsApp and Instagram, which they believe may have been done to stifle competition. In internal emails sent between Zuckerberg and Facebook’s former CFO David Ebersman back in 2012, the 36-year-old seemed worried that the apps could eventually pose a threat to the social media conglomerate.
“These businesses are nascent but the networks established, the brands are already meaningful, and if they grow to a large scale the could be very disruptive to us,” Zuckerberg wrote to Ebersman, “Given that we think our own valuation is fairly aggressive and that we’re vulnerable in mobile, I’m curious if we should consider going after one or two of them.”
When Ebersman asked him to clarify the benefits of the acquisitions, Zuckerberg stated the purchases would neutralize a competitor while improving Facebook.
“One way of looking at this is that what we’re really buying is time. Even if some new competitors springs up, buying Instagram, Path, Foursquare, etc. now will give us a year or more to integrate their dynamics before anyone can get close to their scale again.” Zuckerberg said.
This isn’t the first time the FTC has investigated Facebook either. Last year the agency fined the company $5 billion for the mishandling of user’s personal information, the biggest penalty imposed by the federal government against a technology company. As a part of the settlement with the FTC in that case, Facebook also promised more comprehensive oversight of user data.
If the FTC does pursue an antitrust suit against Facebook, it could end up forcing the social media giant to spin off some of the companies it has acquired or place restrictions on how it does business. Considering how long it will take to file the litigation and prove the case in a courtroom, however, it seems that Zuckerberg will once again be “buying time.”
What you need to know about the historic TikTok deal (for now)
(BUSINESS NEWS) No one really knows what’s happening, but the TikTok deal’s impact on business, US-China relations, and the open internet could be huge.
So, maybe you’ve heard that Oracle and Walmart are buying TikTok for national security!
Um, not exactly.
Also, Trump banned TikTok!
Sort of? Maybe?
The terms of the proposal seem to shift daily, if not hourly. The sheer number of contradictory statements from every player suggests no one really knows what’s going on.
Just one example: Trump said the deal included a $5 billion donation to a fund for education for American youth. TikTok parent ByteDance, said, “Say what now?”
Here’s what we think we know (as of this writing):
Oracle and Walmart would get a combined 20 percent stake in a new U.S.-based company called TikTok Global. Combine that with current US investors in China’s ByteDance, TikTok’s parent, that would give American interests 53 percent. European and other investors would have 11 percent. China would retain 36 percent. (On Saturday Trump said China would have no interests at all. But that does not jibe with the reporting on the deal.)
Oracle would host all user data on its cloud, where it is promising “security will be 100 percent” to keep data safe from China’s prying eyes. But reporting has differed on whether Oracle will get full access to TikTok’s code and AI algorithms. Without full control, skeptics say, Oracle could be little more than a hosting service, and potential security issues would remain unaddressed.
Walmart says they’re excited about their “potential investment and commercial agreements,” suggesting they may be exploring e-commerce opportunities in the app.
The US Committee on Foreign Investment in the United States, which is overseen by Treasury Secretary Steven Mnuchin, still has to approve any deal.
As for the TikTok “ban” – which isn’t really a ban because current users can keep it – the Commerce Department postponed the deadline for kicking TikTok off U.S. app stores to September 27, to give time for the deal to be hammered out. Never mind that it’s still not clear whether the U.S. government has authority to do that. Unsurprisingly, ByteDance says it doesn’t in a lawsuit filed September 18.
Whatever happens with the whiplash of the deal’s particulars, there are bigger issues in play.
According to business news site Quartz, moving data storage to Oracle mirrors what companies like Apple have done in China: Appease the Chinese government by allowing all data hosting to be inside China. A similar move could “mark the US, too, shifting from a more laissez-faire approach to user data, to a more sovereign one,” says China tech reporter Jane Li.
In the meantime, TikTokkers keep TikTokking. White suburban moms continue to lip sync to rap songs in their kitchens. Gen Z continues to make fun of the president – and pretty much everything else.
And downloads of the app have skyrocketed.
Hobby Lobby increases minimum wage, but how much is just to save face?
(BUSINESS NEWS) Are their efforts to raise their minimum wage to $17/hour sincere, or more about saving face after bungling pandemic concerns?
The arts-and-crafts chain Hobby Lobby announced this week that they will be raising their minimum full-time wage to $17/hour starting October 1st. This decision makes them the latest big retailer to raise wages during the pandemic (Target raised their minimum wage to $15/hour about three months ago, and Walmart and Amazon have temporarily raised wages). The current minimum wage for Hobby Lobby employees is $15/hour, which was implemented in 2014.
While a $17 minimum wage is a big statement for the company (even a $15 minimum wage cannot be agreed upon on the federal level) – and it is no doubt a coveted wage for the majority of the working class – it’s difficult to not see this move as an attempt to regain public support of the company.
When the pandemic first began, Hobby Lobby – with more than 900 stores and 43,000 employees nationwide – refused to close their stores despite being deemed a nonessential business (subsequently, a Dallas judge accused the company of endangering public health).
In April, Hobby Lobby furloughed almost all store employees and the majority of corporate and distribution employees without notice. They also ended emergency leave pay and suspended the use of company-provided paid time off benefits for employees during the furloughs – a decision that was widely criticized by the public, although the company claims the reason for this was so that employees would be able to take full advantage of government handouts during their furlough.
However, the furloughs are not Hobby Lobby’s first moment under fire. The Oklahoma-based Christian company won a 2014 Supreme Court case – the same year they initially raised their minimum wage – that granted them the right to deny their female employees insurance coverage for contraceptives.
Also, Hobby Lobby settled a federal complaint in 2017 that accused them of purchasing upwards of 5,000 looted ancient Iraqi artifacts, smuggled through the United Arab Emirates and Israel – which is simultaneously strange, exploitative, and highly controversial.
Why does this all matter? While raising their minimum wage to $17 should be regarded as a step in the right direction regarding the overall treatment of employees (and, hopefully, $17 becomes the new standard), Hobby Lobby is not without reason to seek favorable public opinion, especially during a pandemic. Yes, we should be quick to condone the action of increasing minimum wage, but perhaps be a little skeptical when deeming a company “good” or “bad”.
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