Wisdom from the “World's Meanest Boss”

I read somewhere recently that Harold Geneen, one of my favorite corporate executives, had made it on an all-time list of the World's Meanest Bosses. Geneen ran ITT back in the 60's and 70's, when size meant everything and conglomerates were the rage. He developed a reputation for always hitting his forecasts, and being impossible to work for.

Mean or not, he had some keen insights into the business world which I have benefited from and which I will share here, along with some Small Business applications.

Seeking the Truth

Geneen was famous for his monthly executive meetings. They were grueling, multi-day, 14- hours-a-day events , where he would grill his divisional managers about their performance and expectations. He would go through their reports line by line, looking for the facts. Or, as he called them, the “unshakable facts”. He went to great pains to sort out the opinions, and guesses, and hypothesis, and suppositions, and biases and wishful thinking, to get to the “unshakable facts”. I imagine he found them few and far between.

I bet you experience the same thing every day. People come to you with information, and want you to make a decision. Unfortunately, much of that information is false, or assumed, or only partially accurate. A long way from being “unshakable”. Obviously, if you get poor information you will be making poor decisions. If you want to make better decisions, the information, and the information source must be analyzed. (Geneen felt that was best done in-person, hence the endless monthly meetings.)

Boiling information down to unshakable facts, as presented by your employees, requires a lot of work. Lazy managers don't bother: they just accept with they are given, and blame their staff when things go wrong. A strong manager is always skeptical, until proof is provided. The stronger the facts, the better the decision-making.

The Greatest Executive Disease

Geneen came from the corporate world of the 60's where, as depicted on the Mad Men series, all serious businessmen had a bottle of booze in their desk drawer, and the senior executives drank expensive scotch. It was in this environment that he developed his famous quote about the Great Executive Disease:

“The worst disease which can afflict business executives in their work is not, as popularly

supposed, alcoholism; it's egotism.”

What a fabulous insight!!! Executive egotism has ruined more businesses than alcoholism and drug addiction combined. Not only is it more powerful, it's harder to recognize. People suffering from serious substance abuse are easy to spot in the workplace. The signs identifying an ego-driven executive are not as obvious. And too often, its the Boss: who's going to call him out???

Small businesses are run by entrepreneurial types, and a healthy ego is a prerequisite for success. Too often, however, the decision-making groups in these companies become “inbred”, and the executives end up believing their own press releases and reliving their past glories. The executive ego attitude of “my ideas worked in the past, and they'll work in the future” has caused many a business to lose its edge and its position in the marketplace.

Organizations that are successful over the long haul have mechanisms to constantly inject new blood and new ideas into their decision-making counsels. It is hard on the ego, but good for the business.

Practical Tip of the Day:

• What is the primary USP (unique selling proposition) that you are using in your marketing today? How does that compare with the message you used 5 years ago? (For more about the USP concept,  Click Here. )
  
• If it is the same, that could be an example of missed-placed ego. Just because it was your idea and it worked, doesn't mean it is still applicable.
  
• If you dig for the unshakable facts, you will find that the market has changed. So should your message.

For more information on Harold Geneen and ITT, Click Here. Or better yet, read one of his books.

Vive La Difference!

A technical term often used in marketing discussions is the USP: Unique Selling Proposition ( or, sometimes, Unique Selling Point).

It refers to something offered by the company that the competition can't/ won't/ doesn't match. It is a great way to get the buyer's attention.

Having a USP creates a superb marketing benefit, but only if it is actively promoted. Which brings us to today's topic:  Comparative Advertising.

I LOVE comparative advertising! I think it exemplifies what great marketing is all about.

The first time I remember seeing this approach was in a television ad for Wilkinson Sword Blades. This was back in the day when the US shaving market was dominated by Schick and Gillette. Wilkinson, the big British company, was trying to break into the market with its new, plastic coated blade. The commercial was simple: a small table, with 4 packages of blades from the major US companies. A hand appears, brushes the competitor's products to the floor, and places a pack of Wilkinson blades in the middle of the table. The announcer states that Wilkinson Sword makes the best blades anywhere, and the commercial ends.

The advertising community was shocked. Mentioning your competitors, particularly in a negative manner, just wasn't done. Complaints were made to the FTC (Federal Trade Commission), but they held that comparative advertising could benefit consumers and encouraged it, provided that the comparisons were “clearly identified, truthful, and non-deceptive.”

What constitutes “truthful and non-deceptive” has been debated in many court cases since, but that hasn't stopped the practice. Some great examples through the years include the famous “Pepsi Challenge” and, more recently, the very clever “Mac vs PC” ads. (Here is the Youtube link to those ads.)

The automotive companies make extensive use of this technique today, particularly in their truck advertising. The Ford ads with Dennis Leary, and the Chevy ads with Howie Long, both state their advantages over the competition. They tout their mileage, power, and towing statistics, and they name names. It is powerful, and persuasive.

So, why don't more companies use this tactic?

We can assume it's because:

• They wish to appear to be “polite”
• They don't want to mention the competition's name
• They haven't figured out a USP
• They don't want to encourage a counter-attack

In my admittedly-radical point of view, if you don't have a USP, you really shouldn't be wasting money on advertising. I am a big believer in addressing the customer in manner they consider relevant, and in answering the Big Question. As detailed in an earlier post, before someone makes a purchase from your company, they endeavor to find an answer to the Big Question: “Why should I buy from you, rather than 6 other companies that do the same thing”.

Comparative advertising certainly attempts to answer that question. Are your ads as effective?

Practical Tip of the Day:

• What sets your company apart from the competition?
• What do your customers like about your company, as compared to the competition?
• Do you promote those qualities in your advertising?