Tom Asacker

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Put trust in ideas, and not in circumstances

My friend Mark Ramsey is a media industry pundit. He blogs over at Hear 2.0.  Last week he posted something that brought back memories from my halcyon days with G.E. (at least they appear that way to me now).  Here's what he wrote:

"Recently I had a conversation with a very talented and well-intentioned broadcaster. We talked about the shift to accountability and the changes that were necessary for his stations and for the industry overall. He agreed that these changes were coming, but he argued that they were at least a couple years away. 'Right now,' he said, 'you still go into that buyer and she makes her decisions based on cost-per-point.'"

You can read the rest of Mark's post at this link. Now, I agree with Mark, and many others, who point to the inevitable shift in marketing spending to more measurable media and platforms.  After all, today's technology enables it.  But that's certainly not where the opportunity lies for media, agencies, consultants, etc.  I know. I've seen this story before.

Mark's scenario reminds me of my stint as head of purchasing at one of G.E.s high-tech business units. Back in the day, if our department was "instructed" by the computer to purchase a particular component to fulfill a planned production schedule, we'd call various suppliers (no email back then) and negotiate the absolute best pricing and delivery.  It was purely tactical.

Yes, we were interested in performance, a.k.a. quality, but we assumed that the sourced components would meet their published specifications.  In purchasing, we made our mark by reducing costs and inventory levels.  So we made our decisions primarily on price, price, price (and on-time delivery).  And our suppliers felt it.  Kind of like WalMart's suppliers do today, as well as many media salespeople and agency reps.

However - and this is the key insight - if an engineer walked into my office and requested (forcefully) that I source a unique component, one that was strategically important to give us an edge in the marketplace with our customers, my leverage with the supplier was completely wiped out. Despite my posturing and arm twisting, the supplier knew who had who in a full nelson. And so, with smiles on their faces, they "worked with me."  Our marketplace status improved and their margins soared!  It was a win-win.

The same is true in every industry, and in every segment and all niches: Who ever has the best idea - the one that moves the needle in the customers' lives - wins! Sure, in many cases it's a short-lived win, but it's a win nonetheless.  The kind of win that every brand in it for the long term is after; attention, interest, trust, and - listen up GM, Filene's Basement, Muzac, Circuit City, Tribune, et al - high margins.

As Emerson wrote, "It is a lesson which all history teaches the wise, to put trust in ideas, and not in circumstances."  I was exposed to this lesson very early on in my business career. And I've also learned, the hard way, that the difference between ideas that create customer desire and growth, and ones that fade away is refinement.  So, we must all be in the ideas business, especially today.  And . . . we should always be seeking refinement in those ideas.  Our present circumstances be damned.

Posted May 26, 2009
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