In January of 1993, I began preaching the Gospel of Change – its management and architecture. One of my first presentations was to a very successful community bank’s senior management team. I said, “Today, General Motors, Sears, and IBM are Kings of their respective Jungles. I believe in my lifetime (I was 46 at the time) one of these companies will go bankrupt!” The audience rolled their collective eyes! In 16 years I was vindicated (see below).
GM filed for Chapter 11 reorganization in the Manhattan New York federal bankruptcy court on June 1, 2009 at approximately 8:00 am EST. June 1, 2009 was the deadline to supply an acceptable viability plan to the U.S. Treasury. The filing reported US$82.29 billion in assets and US$172.81 billion in debt. (Wikipedia)
Time Magazine (6 / 28 / 93) was also warning bankers about threats on their horizon: Are Banks Obsolete? Fat, Dumb and Happy, Commercial Banks Are Being Quickly Replaced As Financial Intermediaries (Bernard Baumohl). History proves this article was right. In 1990, there were 15,158 banks insured by the FDIC. By 2010, survivors numbered 7,760.
In the Thursday, March 23, 2017 Wall Street Journal an article suggests that I may be right again. The headlines read, “Sears Creates Stir as It Casts Doubt about Its Future” (Today [October 15, 2018] I was proven right). Other articles used the “B” word – bankruptcy. Ultimately IBM may fail as well.
Today, I’m not going to scare you into change – I’ll merely shine a spot light on the changes that are already occurring in the world and you decide if these innovations are “friends” or “foes.” Don’t ask what threats these changes mean for you. Ask instead what these changes mean to the marketplace – to each of us as consumers.
“The consumer is King,” and now the Consumer shops in a global marketplace – when, where, and how they want. Below are 5 transformational changes that are impacting the world for your clients and you + a word of hope dating back many years.
Generational Change: Many of us grew up in a Father Knows Best World. Today the universe is more similar to a “Modern Family.” The following are some popular terms to define our demographics.
The Greatest or Silent Generation (until 1946) – Youngest members are about age 70. The Baby Boomers (1946 – 1964) - Youngest members about age 52. Gen X (1965 – 1984) – Youngest members about age 32. Depending upon the study, Gen Y / Millennials overlap (1982 – 2004 – Youngest members about age 13. (The Atlantic – March 25, 2014)
As Paul Harvey said often, “We’re not one world.” He was so right. In terms of marketing reality – ONE SIZE DOES NOT FIT ALL. EVERYONE CAN ENJOY A BUYING EXPERIENCE TAILORED TO THEM - WHEN, WHERE, AND HOW THEY WANT IT!
Big Data and Artificial Intelligence: Yesterday I opened an e-mail offering me a “deal” on a new Toyota. Within in an hour I had received similar e-mails from most other brands that I might be interested in. Big Brother (or Big Sister) is watching everything we do. Now sophisticated sellers can anticipate your needs and be first to market with a solution for each need. Can you do this?
Global Marketplace / Virtual Marketplace: As a consumer you can buy anything you want, wherever you want. As a “seller” your competitor is not down the street – they are everywhere.
Language / Diversity: Robert Young as Jim Anderson in Father Knows Best was an Insurance agent and also an OWGIC (Old White Guy in Charge). Today ours is a much more diverse and multi-lingual world. Everyone can be in charge of their own world. Do you speak enough languages to serve this marketplace? Who is / will be your marketplace (Hispanic, Laotian, Muslim, etc.) REMEMBER ALSO THAT MANY “YOUNG-UNS” ARE NON-VERBAL. How will you sell in a non-verbal world? If you don’t believe me – call a teen and see if they answer. Text and they will.
Innovation of Products / Services / Competitors: What, where, and how you sell have no meaning? What where and how people buy is all that matters. Remember Social Media, Robotic Surgery, Driverless Cars, Amazon, Expedia, UBER, GOOGLE, AirBNB, etc. Innovations change options and in some cases bankrupt organizations / industries that are FAT, DUMB, AND HAPPY.
Your Hope / Opportunity: John Naisbitt first developed the concept of high tech, high touch in his 1982 bestseller Megatrends. He theorized that in a world of technology, people long for personal, human contact. He was so right. Become client defined and client driven. Develop client intimacy. Be engaged with the people and markets you serve. Don’t sell them; facilitate their buying. Be a concierge, a friend, a shoulder to cry on and voice of encouragement. Build intimacy - be a professional, expert, trusted resource.
Carpe Mañana ©