Tuesday, September 28, 2010

Exchange Retailing Ideas with Lots of Others

Finland’s Nokia was the world’s mobile phone powerhouse. But a recent Bloomberg Businessweek article describes the company as having been in “steep decline” in recent years. Nokia has many strengths to bounce them back to extraordinary success. They still hold more than 30% of the market for global mobile phone sales. Still, what happened to Nokia can serve us as a cautionary tale.
     Bloomberg Businessweek attributes Nokia’s problems to an isolation that kept the company from challenging their own business assumptions. As a consequence, they failed to keep up with what consumers came to expect in product capabilities and handset design. Nokia had a reputation for hiring from within. It was only earlier this month that Nokia selected, for the first time, a non-Finn as its CEO. Their ideas stayed within. The operating system for their phones is used by no company other than Nokia.
     The lesson for us? Cut through isolation. Exchange ideas with lots of other business people.
  • Broaden the range of people to learn from. Yes, you can’t learn from everybody. For one thing, you don’t have the time if you’re operating your business. For another thing, not everyone who catches your attention has lessons that apply to your business. But look for teachers outside your usual channels. As you read my posting now, do you find yourself thinking things like, “How can I learn from what happened to Nokia. They’re a manufacturer, and I’m a retailer,” or “What could I possibly learn from the experiences of a company like Nokia that is so much bigger than my business”? If you’re thinking like that, you’re at risk for isolation.
  • How often do you and your staff interact with other businesspeople? The Bloomberg Businessweek article pointed to the physical isolation of Nokia’s headquarters, far distant from other consumer-electronics and Internet-development firms. There might be something to that. Texting, blogs, and videoconferencing can provide important information. But compared to face-to-face interaction, communication from a distance falls short in spreading the passion. Encourage your staff to participate in workshops and professional conferences.
  • Every week or two, consciously question your business assumptions to see how they hold up. Decades of social psychology research—such as at University of Colorado, State College of Colorado, and Ohio State University—highlight how having a point of view primes us to ignore contradictory evidence we’d benefit by noticing.
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2 comments:

  1. Bruce, great post! Would like to add a suggestion for your readers... almost all retailers have the opportunity to attend National Trade Shows... We at www.PattycakeDoll.com attend the American International Toy Show and The Gift Show. We have found not only the new products that keep our online stores exciting to visit, but exactly the kind of 'isolation busting' opportunities you suggest... educational sessions, government regulation updates etc; the opportunities are endless. As online retailers we can get really isolated... we don't even have the 'off the street traffic!'

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  2. Thank you for your excellent idea, Peter. I've found that the value I receive from trade show and professional conference attendance is directly related to my preparation and the follow-up:

    -Specifying in advance what questions I want to get answered, what skills I want to build, what sorts of merchandise I want to assess, and so on.
    -Looking over the program in advance so I can sign up for the best workshops and seminars before enrollment slots are filled.
    -Setting up meetings with attendees who I wouldn't be seeing soon otherwise.
    -After the session, following up on tasks I agreed to do, making contacts I said I'd make, deciding to what degree the conference allowed me to meet the objectives I'd set, so I can decide if I want to attend next year.

    Again, I very much appreciate your generosity in sharing a fine idea. I'm confident my blog readers will benefit from your suggestion, and those who look at your website at www.PattycakeDoll.com will be inspired by the beauty of spirit in your ecommerce.

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