Thinking About the Consequences of our Education System, Bullying, our Health System, Coach Azul, Cameron Harold and FREE Publicity

I listen to a lot of podcasts. I was listening to them while commuting to and from work. Then last year I suffered a back injury and I have been waiting at home, consuming pain medications and exercising for what seems like forever, for ACC to approve spinal fusion and a discectomy so that I can get back to work.

Around a week ago they notified me that they are not going to pay for the surgery on the basis that I have degeneration in my discs that was not caused by the injury. It ‘rendered them symptomatic’ and I am now waiting for an appointment with the Waitemata District Health Board, whilst working on a review claim with ACC, New Zealand’s Government Accident and Injury insurer, who I feel could have had me back at work 6 months ago. They are still covering me for the back strain, but my specialist has said that they have tried everything bar surgery. “We’ve painted ourselves into a corner” he said.

I’m told that the North Shore Hospital spine surgeon is fantastic, but they also told me they have to legally see me within 4 months. In other words, just because it says “urgent’ on your case file, doesn’t mean you will even get to speak to someone anytime soon.

So I’ve had a lot more time to listen to podcasts while exercising, strengthening my core, whilst awaiting the needed surgery I still need, so I can return to work. I suspect there are thousands of people like me, numbers that get recycled in meetings focused on saving money. Ironically, when I work I am saving citizens much more money, but I digress.

One of the podcasts I enjoy is from Azul Terronez called Born to Write. If you follow me, you know I am passionate about writing and storytelling as a means of sharing a message on my various blogs and books.

The latest podcast from Coach Azul really resonated with me. The guest was Cameron Harold, a writer, entrepreneur, business mentor and founder of the COO Alliance.

He talked about some struggles he had growing up when he was told that he was  not academically in the top 40% of students and how he battled in his mind with that through school and university.

His story to becoming an entrepreneur resonated with me but from a different perspective, particularly the education part. It fascinates me how education systems seem to fail at both ends of the spectrum, contrasting with today’s apparent dumbing down of some generations whist the skill levels that create our greatest achievements are held back, limited to those who often achieve despite the system, rather than by its design.

I was one of those kids who didn’t fit in school, particularly once I got to high school. This was not because I wasn’t in the top 40%, but because I was in the top 2%. I’m starting to write about it, but not at this stage for publication.

I used my smarts to survive in a school (being a good guitarist helped) where the height of success was failing exams and getting into the school rugby 1st 15. In my school an A+ meant getting bullied for showing up the other kids. We had streaming, but being in the ‘Ac 1’ class also put a target on the back of your head.

Even teachers who tried to encourage kids to do well were on occasion beaten up and thrown down stairwells because the kids they tried to help were embarrassed in front of their peers. I liked sport (I played in previous schools, hockey and club soccer when living in Holland) but the thought of having to stay at school a minute longer than I had to (for training) was anathema.

The podcast I listened to this morning was about getting FREE publicity. I learned similar lessons to Cameron Harold early in my career, when I was racing landyachts as a hobby sport, and I was looking for sponsorship to send a team from New Zealand to the USA.

Me on my Class 5 Winger on 90 Mile Beach

I needed publicity to attract sponsors for a sport where one minute you see the yachts racing over the sand on a long beach or on the tarmac of an air base; and for the next half an hour or so, you sit there waiting to see them briefly again as they would fly around a mark, crashing into each other on 2 wheels. It was a great spectator sport for about 4 minutes of each race that could take up to an hour and a half.

I did two things. I got a well worn small book from the library. I don’t recall what it was called but it may as well have been called “Get the coverage you want by giving the media what they want”.

One of the things it said to do was to ask them what they wanted. That seemed to simple but I did it. I rang radio sports journalists, I rang TV, I rang magazine editors and I rang newspaper sports writers. I introduced myself and gave a quick pitch of why I was ringing, explaining the challenges of a fast exhilarating sport, with yachts on wheels doing over 100 kph on the beach that no one had heard of.

Next thing I found myself in the newsroom of the New Zealand national daily, speaking with the Sports Editor. End result, they got some great stories, we got global TV coverage, we got international magazines and radio stories, we got sponsors and our team (unfortunately I had to pull out at the last minute) went to the Nevada Desert and won the America’s Cup of Land Yachting! And I learned how to get more than my fair share of media coverage for my employers and my modest entrepreneurial ventures.

Ironically listening to Cameron’s story, and despite being very gifted intellectually, I didn’t do any university study until much later in life, because I spent many of those teenage years rebelling against a system that had no place for bright people. I’ve had a pretty exciting life so far and I feel I have made a strong contribution in my endeavours, but I also wonder if I didn’t live in the land of Tall Poppy Syndrome, how much more I could have achieved if the education system had acted on what they discovered about me and nurtured it.

Which sort of brings me back full circle to my ailing back. I have now sat down too long writing this and need to do some stretches and exercise as I wait for my number to be called by the Waitemata District Health Board for my first specialist meeting, so I can have my surgery and get back to my job. When you’re a number in the system, a few pages in a manilla folder, you are equally invisible if you want to work and be productive as someone who will quite happily live on a benefit.

Does any of this resonate with you?

 

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Who Can You Trust? Who Do You Trust (Read Time 1:41)

Who do you trust? Who can you trust? With happenings in Auckland, New Zealand mayoral politics recently, the NSA spying, and other revelations, we find ourselves in interesting times. With the invasive growth of social media we live in a world of increasing transparency. Corporates and Governments which have thrived on sharing only what they think people need to know are losing that battle.

I’ve been reading article in The Futurist by Rolf Jensen, Chief Imagination Officer (I like that title!) of Dream Company in Denmark who compares today’s society to the first Renaissance. Gutenberg’s Press accelerated the spread of new ideas, and the golden age sprung out of the middle ages where much of the world was controlled by a religious hierarchy.

We have a similar break-up to political hierarchy’s now, particularly in but not limited to the Middle East and Europe, and like the Gutenberg Press, Social Media is now making important information available to the masses, most significantly in real time. This means that it isn’t possible for governments and corporations to use smoke and mirrors quite so much. With trending information, we can see right past the kaleidoscopic obfuscation to what is really going on.

Here are some interesting statistics that Rolf shared in his article in The Futurist:

• From Pew Research: In the 1960’s 75% of the US public trusted their Government. In 2010 the result was 25%!
• The European barometer polled UK voters in 2005 and found a trust level of only 34%. In 2012 that was down to 21%.
• CEO’s of large corporations are trusted by 45% of the US population (almost double the number that trust their politicians, that’s positive isn’t it?)
• Gallop says that teachers are trusted by 84%. That’s great news isn’t it. What a shame they get one of the smallest parts of the budget!

Back to social media though, what we are doing is finding groups of people that we do trust and building a new society. We’re sharing knowledge and information in countless ways that have immediacy.

As an example, in my new eBook, Buying a House – Using Real Estate Apps, Maps and Location Based Services, I speak a lot about using social media to research where to live. I cover questions like where to find people who are like you, or people who can tell you about a suburb or area, who have nothing to gain by sharing that information. Who can you trust to give you honest information?

I feel very grateful to live in such exciting times where the power is gong back to the people. Of course ‘the people’ do have to take the power and whilst everyone subsequently had an opinion on Mayor Len Brown’s indiscretions, only 33% turned up to vote in the Auckland local Government elections. I do like the saying ‘You get the Government you deserve’.

So who do you trust? Who do you go to for advice? How are you going to use the information now available to you, to help build the world you want for yourself and your children? How will you contribute?

Comments welcomed.

On SNAKK Media, Derek Handley and Kiwi Entrepreneur Success

The Snakk Media AGM, appropriately held in the Sir Paul Reeves Building of AUT in Auckland last night, appeared to be a classic event, with typical investors, asking typical questions. However, in my opinion, it wasn’t, it was a meeting in a room made up of some of the finest minds in marketing and leading edge mobile technology.

SNAKK AGM

I was very proud to see entrepreneur, Derek Handley, on the stage surrounded by other Kiwi business leaders and visionaries including Tim Alpe, Max Flanigan and GM, Andrew Jacobs who I met for the first time last night.

I’m sure the media will cover the story, but here’s my take; on a tangent. I have always believed in Derek, his family and team from the day I met them, many years ago as they were preparing to found The Hyperfactory. They were the classic start up and I admired their passion and enjoyed their company, because they were driven and they were passionate about the same things I was, and still am. I love the company of positive, can do, will do people.

Snakk has allowed Kiwi investors to invest in a company that may never do a huge amount of business in New Zealand, which is really exciting, because it is not an opportunity that comes up often. As was pointed out, 2 years ago mobile digital advertising spend in New Zealand and the UK was 1% of the total spend. Today in New Zealand (where I have been trying to educate agencies on location based marketing and Augmented Reality, the percentage remains at 1% and in the UK is now 23%. In Australia they have the third fastest growth in the world (sic) of smartphone and tablet users, so it is appropriate for their head office to be in Sydney.

There was a lot of discussion about the threat to live TV with so many people now streaming to their mobiles and time shifting. Snakk didn’t mention all the technologies, but I am confident that they have a lot of tricks up their sleeves so that people like me who watch a reasonable amount of TV, while using my iPad or mobile, and MySky, will also be able to receive the messages I want. 

Here’s where I get excited. I want, and assume you will too, my TV. When it comes to advertising, I’m a marketer, but I don’t generally like watching ads. I guess the main reason is because most of them are not relevant to me, or at least not relevant to me at that time. I want them when I am open to buy.

So here are some of the things that I wanted to hear (and did either directly or between the lines):

• Profile. I want ads that match my profile. Having them appear on my third screen (my mobile or tablet) in conjunction with what I am watching, based on my interests is something I might welcome. If there is an interaction between my device and the TV program, then it may not matter if I am watching live or time-shifted, depending on my:
• Context. A lot of the future of mobile advertising comes down to an app on my device knowing things about me. What I am interested in, where I eat, drink, play, get entertained. What I am interested in at certain times of the day or day of the week. Market food to me at a time I am likely to be considering a meal. Then of course there is:
• Location. If my mobile knows where I am, there is so much more you can do. If I like coffee, I’m walking downtown and there is a cafe that wants my business, let them send me an offer together with a reward of free WiFi.

On another tangent, the awesome podcast from Asif Khan and Rob Woodbridge of the Location Based Marketing Association: This Week In Location Based Marketing mentioned that where a geofence is used for guerilla based mobile marketing, they get a 12% click through rate. Just to explain, imagine you walk into Burger King and your mobile bleeps you a notification offering you a free upsize if you go to McDonalds up the road and buy a Big Mac combo.

This is where people started to get excited and concerned about privacy and I need to mention the MAC, pun intended. Effectively it is possible for apps to learn about you and your behavior without having your personal details. Effectively they track your mobile, not YOU. It’s not quite that simple and that is why in the early days of The Hyperfactory (I didn’t actually work there, I suppose you could have called me a Hyperfactory groupie) we started to set up a Mobile Marketing Association, with the view of self regulating to ensure the Government didn’t over regulate. The key was around allowing people to know what information was held about them and giving them the right to revoke access to it.

This blog is getting way too long, so I’ll finish with a few quick thoughts on Foursquare. I wish I had paid more attention to Derek having shared an office with Foursquare, I think I made a mental note to talk to him about that, but I didn’t. Maybe I still will.

The question was asked as to whether Foursquare was viable and the general answer from the panel was, not really. Derek was more retrospect and pointed out that the issue in New Zealand has always been one of scale. In New York City scale isn’t a problem, the population is over 8 million people. They can afford to have sales people in NYC and its easy to segment them.

In New Zealand there are actually a reasonable number of users, but Foursquare hasn’t really been interested in them because we are too small. I briefly became a Foursquare Ambassador and saw big opportunities for proximity based marketing. I saw a business model for myself with Foursquare, but they would not allow me (or anyone) to manage multiple businesses on behalf of customers. Each account had to be managed individually and for New Zealand that was a fatal flaw.

For those who think Foursquare is out, have a read of this story from Fast Company.

Did you go last night? What did you think? I think this is going to be a very successful global company and look forward to being involved somehow, if only only the sideline. I have watched and met many successful people over the years through my business network and Derek Handley is a Kiwi that remains underrated imho despite all he has achieved to date. In my opinion the shares are well undervalued right now. I’d recommend at least buying a few.

Footnote: I do not own any shares in Snakk Media. I do not work for Snakk Media in any capacity. I would seriously consider both though:)

Congratulations to Julie Landry, Vaughn Davis and the team for an excellent event.

How Do You Keep Up With the Massive Changes Affecting Your Business?

How do you keep up with the changing environment you live and work in? Technology is a moving target as are many other elements that shape our environment. There are so many facets to our industries that constantly change while you are trying to keep your business going the best way you know how. 

There are a  number of options. You can join business groups, buy industry magazines, search the Internet, follow social media and talk to others in your industry. So now you are working a 16 hour day and not necessarily making much more progress. Why? Because you are so focussed on doing Business As Usual and your view is based on your insider knowledge, bias and training.

What else can you do? One option is bring someone like me in as a consultant. As a Futurist I scan data using tools I have learned, my own experience in business and a wide focus on STEEP, whilst also having no skin in your business and therefore an objectivity that is hard to find when you have been making decisions that you are financially and emotionally attached to.

What is STEEP? It is about looking at the world and elements within it from the perspective of a wide range of elements and wild cards which make up the world. These key 5 elements are Society, Technology, Environment, Economics and Politics.

Take those 5 elements and apply them to your Business Plan. What is going on in your world right now in relation to STEEP? How might each element impact on your new product launch or sales plan? I would welcome your comments. 

One of the elements of foresight is being able to find connections between seemingly irrelevant  factoids or situations and understand what they mean. Then on top of that sometimes there are wild cards to be considered. What would happen if……..

When you look at information in isolation there are many risks. People form opinions based on snippets of information without seeing the full picture. They assume other people’s opinions, perhaps also based on bias or limited information. People often form opinions or carry them forward based on old data, often not even knowing that it is old data. For example, you may see a RT on Twitter and think it is current information, when in fact it has been retweeted by people for a week. Think about the disinformation that went around in Boston recently. Once it flies around it is very hard to know which information is current and correct.

Unleashing the Road Warrior

Currency of information is hard to find these days. When a book comes out, by the time it has been printed it is already out of date. When I published Unleashing The Road Warrior, which took me about 6 months to write, it had a currency of about 2 years. After that, all the technology I wrote about was out of date.

We are frequently bombarded with little pieces of information, parts of stories, brief nuggets of 10 ways to be better at something, or 5 ways to become a social media superstar and double your sales. If only it was that easy.

Is there a simple answer? No, there isn’t. However in today’s world, we are connected to many people who are experts in certain areas. There are also people who maintain they are, when they are not. Start by connecting to people who really do know what they are doing. Ask people you know and trust. Check out their credentials. LinkedIn is a good place to start from a business perspective. Are they well connected? Have they been endorsed or recommended? Do you know people that they are connected with that you can talk to?

There are 3 types of people in the world. Those that make things happen, those who watch things happen and those who wonder what happened. Don’t be in the last group if you want to go forward, but also be careful where you get your counsel from.

As a footnote, if you are in New Zealand, or somewhere else where similar things are happening. Fairfax is said to be closing down in both print and online Computerworld NZ, PC World and Reseller News. So where will you be looking for information on your next technology investment or foray? I welcome your comments.

What is a Blog and How do I Get One?

Everyone is talking about writing blogs. In the world of IT and in large companies, people are writing online. It might be newsletters, articles, pages on websites and of course social media. That’s all very well for people that like writing and can do it well, but what about busy people working in their SME business? What about people who are good at what they do but are not good at writing?

I’m not going to tell you in detail what a blog is. The web is full of explanations, Wikipedia, defines it as well as anyone here. A blog is effectively an easy tool to allow you to share your passion and message with the world. It’s a way to attract new clients, to share your knowledge, to engage with people with a common interest, a way to share stories.

A blog can contain photos, video, music, polls and much more. You can allow people to comment, you can create categories of information, add keywords to help people find your information when they are looking for what you have and much more. It is also chronological and that is very important. If you are going to blog, you need to be doing it regularly so that people know there will be new information coming. They can subscribe to it and get involved with you and your brand.

Here are a few thoughts:

1. Why blog? If you don’t know the answer to that, skip the rest of this. If you have a bit of an idea, then start focusing on it. What is your end game? Do you want customers to buy your goods or services? Do you want to add value and inform people about things you are excited about? Do you want to raise your profile? Do you want new customers, or to keep existing ones? if you don’t have a goal, you’re going to have a pointless blog.
2. Why would people read your blog? You don’t want to be preaching to the converted. You don’t want to be telling people what they already know, which a lot of blog writers do. If you are in business, what sort of questions do customers often ask you? Why do they come to you, I frequently hear people say their customers go to them because they have product knowledge. I would put it to you that if you have product knowledge, you have passion. People will read your blog for the same reason they do business with you, you have a common interest, you have helpful information and you care.
3. How often should you blog? At least a couple of times a week or people will forget about you. Search engines will pick up on your blog is they see there is regular content and you will rise higher up the rankings and more people will find you. That might sound a lot, but they don’t have to be long. In fact any longer than this and people may well stop reading.
4. What sort of writing style should you use? It needs to be easy to read, almost like having a conversation, but leave out the slang and the industry jargon. It also needs excellent spelling and grammar. This is a professional conversation.
5. What should you write about? Keep it relevant to your goals and your target audience. When I was studying songwriting a common thread was write about what you know. As above, what do you know that will be useful to your reader?
6. I want to write but I don’t have time. Then contact someone like me. You can email me at luigi@solomoconsulting.co.nz  I can get you started with your online writing and help you start the conversation.

Blogging is of course only one form of online content writing. There are newsletters, white papers, online magazines, websites and much more. What is great about a blog is that there are easy to use and often free tools. It is all kept in one place, but keeps growing. You can go back and add to stories, you can edit them if you want to. You also get analytics which means you can find out how many people are reading your blog and even what part of the world they come from. Once you get started it’s a lot of fun. Want to get started?

Here are a few blogs that I write. SoLoMo Consulting is all about Location Based Services. The Future Diaries is fiction of sorts with my futurist hat on. I pretend to be some years in the future talking about things that might be coming, mostly about technology. Imersia NZ is one I collaborate on with my colleagues at Imersia. I have more, but these will give you a bit of a mix, showing different ways of presenting information for different reasons. Of course you have already found this one, which comprises everything from technology to soapbox rants.

If there is one final rule I would add, it would be have fun. So we have some empty chairs sitting there waiting to be filled by people who are interested in what you have to say. Let’s start the conversation:)

Google Glasses Separation Syndrome

How would you feel tomorrow if you lost access to your mobile, the Internet, TV and other technologies that you take for granted. How would you feel?

The Future Diaries

Google Glasses and dozens of other brands of Augmented Reality goggles hit the road running for Christmas 2013 and over the next couple of years AR applications went from Wow to business as usual. Today people look at you sideways in many cities if you aren’t wearing glasses. But there has been a downside.  People can’t bear to be without them.

 Not that long ago people had separation anxiety when they didn’t have their mobile with them, then their smartphone. Now its their AR glasses. Hospitals and A&R clinics are reporting many people are presenting with a feeling of vertigo with some patients reporting in an almost psychotic state, saying they feel they have been detached from the real world.

Others are describing the real world without AR glasses as flat, 2 dimensional, when they don’t have access to features they take for granted such as information about locations, deals, games and access to their friends…

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Presenting to IT Professionals with Sead IT People

A couple of weeks ago I had the privilege of presenting to a group of ICT professionals at the Mercure Hotel hosted by Sead I.T. People. The presentation in the series of Sead Latest in IT Seminar was on Mobile Marketing.

How did we get here

Sead Presentation

Covering topics including the latest Gartner Hype Cycle predictions, Location and Proximity Based Marketing, Check-In Marketing, Mobile Computing, QR Codes, Business Intelligence using maps and the hot topic of the use of personal devices in a corporate market, there was something in it for everyone. Case studies illustrated not only practical use of technology, but professional processes to ensure that projects were well designed for success.

The presentation outlined the ongoing chasm between people in the ICT profession and their colleagues when it came to understanding and use of new technologies, particularly mobile and location based. I encouraged the audience ranging from consultants to CIO’s to consider how they can educate and encourage their companies to understand the new technologies and how they fit into their business frameworks. There are great opportunities for IT people to be welcomed back into the boardroom by working closely with the management team to show them how to implement and benefit from new technologies, safely and securely.

Luigi and the Sead Team at the Mercure

Blame the Technology and Australia

Continuing my search into what happened at Whitcoulls and Borders and  generally what’s going on with New Zealand retailers I am finding no surprises, which is a real worry. Two words come up a lot. Technology and Australia. I know a little of both. I live for technology and have trained many retailers over the years (including some who were already millionaires) and while the technology has changed, the principles haven’t. More on this to come.

Australia and New Zealand

As to Australia. In the 90’s many Australasian retailers who had New Zealand operated subsidiary chains based in New Zealand, decided to do away with local country management, local buyers etc.  and to save lots of money by treating their NZ shops as Australian branches. I guess they considered New Zealand as a slightly bigger Tasmania. Not huge, but worth having, especially if they didn’t put much effort into senior staffing  resources.

When performance decreased they blamed the economy, they said that NZ was just an over inflated state and it was always going to be that way, which was how they justified reducing local resources in the first place. The fact is while we may have a lot in common, we are not the same. We are made up of different cultures and history and have subtle differences in our lifestyles. Subtle enough that you can’t treat NZ stores the same as Australian stores and expect the same result.

Similar scenarios happened in many cases with the decades of American Globalisation. It’s funny really that America wanted to change Japan and the rest of Asia Pacific while Japan wanted to change the west. I well remember having discussions with senior management of Casio in Tokyo and Hamura about improving the software on their cash registers. One of the issues was that they hadn’t allowed for people pressing buttons in the wrong sequence. Have you ever been in a retail store when the ECR (Cash Register) is bleeping loud noises no matter what buttons are pushed and the stress it caused the cashier? Their initial response was “They must use the ECR in the right way or you should find better customers”. We ended up beta testing their software in NZ and Australia first and then getting Japan to tweak their software. That was one of the initiatives that helped us get 70% market share in the ECR market in NZ and helped Casio increase theirs around the world. But then of course the company I worked for was sold and I along with my boss and several other great people were made redundant despite the fact that we were doing really well, but because they thought we were earning too much. I’d love to know what their market share is in NZ now. I know it isn’t 70%. Anyway I’m going off on a tangent.

The big thing I noticed in the NZ stores was inventory management. They were carrying a lot of books that I wouldn’t think anyone would buy other than as a joke. I went back to Borders a week ago to jot some of the names down, but it looks like they went in the $1, $2, $5 sale and were gone. They had many dated books especially computing which must have been in store for several years, technical books on how to use software that almost no one has used in the last 5 years.

From what I’ve been told, someone automated the purchasing software to replace books that had sold, so for example if a particular book sold really well, say 5,000 copies, the system would replace with another 5,000 copies. Well there goes the profit from the first lot.

One of the things that makes New Zealand different is our ethnic communities. All over New Zealand, but particularly in Auckland we have clusters of ethnic communities; Chinese, Korean, South African, Indian, Pacific Islanders and more. Brands who fail to take that into consideration waste massive levels of stock by having the wrong product in the wrong locations, which then becomes shop soiled and potentially unsaleable.

Inventory needs to be managed locally by category managers who understand and are at the leading edge of their category and who understand their local market. They need to know weekly what is going on and understand who their customers are and what they are buying. Some books date more quickly than others and need to be moved on quickly, others will hold their value longer, but will still have a rapid half life.

In my previous blog about Whitcoulls and Borders I wrote about how they could follow the example of Amazon and know what their individual repeat customers were buying and therefore their interests and could recommend books to them. Amazon continue to prove that people in NZ will buy based on recommendations along the lines of “You bought these 3 books, other people who bought the same books also enjoyed the following titles”. Not only do we often buy them, but we also pay massive freight costs to get them here, at the same time as local book retailers are discounting stock that people aren’t buying. How smart is that?

One good way of dealing with this is using Business Analytics or Business Intelligence tools such as BIonaMAP, soon to be launched by New Zealand geospatial solution provider, GeoSmart. Fortunately for retail chains, this product will support both Australia and New Zealand, so users can have visibility over both countries.

BIonaMAP

Whitcoulls and Borders

I was thrilled to learn that the remaining Whitcoulls and Borders have been sold to Anne and David Norman. Now they have some hope. They will now live in the Pascoes Group and of course this group are known as having revived the ailing Farmers chain and given them new life.

Once the essential housekeeping details are sorted, such as property leases and staff contracts, there is every reason to hope that they will breathe new life into Borders and Whitcoulls.

That can not mean BAU or Business As Usual, because even though they did OK and the biggest problems were in Australia with REDGroup. Nevertheless these stores were not run optimally and they were not run with the times.

I heard people, partly lead by local publishers, saying that if the NZ stores were run from Australia, they would probably signal the demise of the NZ author. Certainly I agree that we would have seen less Kiwi authors in store, but I think ultimately either the publishers would have to become less greedy and insular or the local authors would start to embrace the new eBook media and of course in doing so they can either self publish or join Amazon or other local eBook publishers. Neither are ideal for people who love books.

As I’ve said in many previous blogs about Whitcoulls and Borders, a few of them can be found here, the first thing is to go back to basics. For these stores to be successful they need to operate smarter and provide what the modern shopper wants. There are many good examples overseas.

With the chain expanding, here a some ideas that I would look at.

• 

  Macy's

  Gift Registry. Chains like Macy’s in the USA have had phenomenal success with their national gift registry programs for decades. They have kiosks in store which are linked nationally. I was so excited the first time I went through one I almost bought a gift for a young man’s Bar Mitsva in Chicago. I was in New York at the time looking for a hat in one of the coldest winters I have ever experienced. It was so well laid out, there were thousands of special events from weddings to anniversaries and being national, you could see from New York, what a person in Madison Wisconsin had their hopes on. Given that the chain owns Farmers and a number of jewellery stores, this would be a great opportunity to combine the lot.

• I keep harping on about Jeff Jarvis’ book What Would Google Do? It’s funny in a way that in one of his first blogs about the book, he suggests that you could buy it from Borders. The thing was though that I couldn’t buy it from Borders at the time because they didn’t have it, so I bought it from Amazon.
• So I think that Borders and Whitcoulls need to start saying, what would Amazon do. So many companies are naive and believe their own hype that web retailers (only part of what they are) are no threat, or they consider them such a threat that when things go bad, they become a self fulfilling prophecy.

Hanging a few Kobo’s on the wall is not the answer, that has been a major botch up in my humble opinion. Even on the web, sell the sizzle on the home page! But some things they could do with their ‘loyalty’ programs is monitor what each customer buys and make recommendations based on the buyer habits. I have bought at least a dozen books on Amazon’s recommendations. Amazon is also much cheaper than buying locally, but that’s a different story because it costs a lot to get books to New Zealand, so unless you buy a stack of books, you pay back what you save on freight.

Amazon has many great features that can be just asdestination events

Mobile Marketing easily applied to a bricks and mortar chain, which has the benefit of being able to hold a book, tell you what store it is in and provide you with much quicker gratification.

I don’t want to write a book, but here a some things you may find in this blog in the coming days for Whitcoulls and Borders:

• Becoming a destination for events such as readings and signings
• Back to basics and way beyond in inventory management
• A major web presence with lots of ideas perhaps sparked by What Would Google Do (which should be a mandatory read for all Whitcoulls and Borders management at all levels)
• A new way for both stores to have lots of stock available, but not necessarily on the spot. A central warehouse with the option of home delivery could cut down inventory sizes without sacrificing range and depth.
• Embrace proximity based marketing on mobile devices. I would strongly recommend that management from Borders, Whitcoulls, Farmers and in fact all retail chains attend the Mobile Marketing Forum in Auckland this June. This Forum could be called The Retailer Strikes Back. They will learn many new ideas at this event.
• Understand their regional customer base. There is no point in carrying the same stock range in each store. It simply won’t work and you will have aged stock going on sale. Some of the category managers need to take a long hard look at the books they have been stocking and ask themselves what on earth possessed them to make some of the decisions they made? Or was it the publishers reps that conned them?
• They should look at products like GeoSmart’s impending Business Intelligence on a MAP. This could produce many aha moments when used to geographically view their business results in combination with consumer demographics.

I could go on but that’s plenty for now. I think with the right motivation and attitude, these two stores can be not only revived, but will rise to new heights. But only if they stop living in the past of this is the way we always did it. They need to embrace and perhaps even lead the future. It’s not hard, its just thinking outside the square and remembering that it is the customers and the books that make your business. Its about the words and the stories and people.

The end of Whitcoulls and Borders in New Zealand

If you have a Borders or Whitcoulls voucher, even if you hate the idea of spending double to be allowed to spend your voucher, I recommend you do it quickly, because within a couple of weeks it will be worthless. It was interesting to see that there is no mention of the current situation on the Borders website which talks about eBooks coming soon, although Whitcoulls have been a bit more responsible with a home page announcement.

The demise of these companies isn’t about eBooks, it is largely around debt as pointed out by Liam Dann in this morning’s Business Section of the NZ Herald.  and the business models. I’m not going to discuss the debt because that doesn’t reflect on the industry itself, it reflects on higher level financial decisions and the economy, not on the book trade.

Book stores and music stores are in industries that are steeped in history of “this is how we’ve done it for the last 50 years and why change it if it aint broke”.

As was mentioned in today’s NZ Herald story by Isaac Davison, “In 2010, 9.67 million books were sold, an increase of 1.2 per cent in volume but 0.1 per cent down in value against 2009. This was despite the mark-up on books in New Zealand, which saw paperbacks sold for as much as $20 more than online, even after shipping costs.”

So much for Amazon (of course there were a huge number of Kiwis including myself who purchased from Amazon as well) being the cause of the demise of our local stores.

I also appreciated the comment in the same story from Jo McColl of Unity Books that many people bought hard copy books as a consequence of having purchased eBooks. I’ve done that too. I read eBooks, listen to Audio Books and still have a personal library of around 2,000 print books. The same with music, I listen to lots of music online but have still purchased at least 10 CD’s so far this year.

I might have to go to a separate blog about how Whitcoulls and Borders business model needed to change in order to stay viable and vibrant (ignoring REDGroup‘s debt which doesn’t reflect on the book trade business model itself) because for these guys its too late unless they get a savvy new owner (who will not purchase the chains’ debt) who is ready to adopt a new business model.

REDGroup have called in Administrators. I don’t care who the administrators are. Their role is a short term one and it isn’t about changing the business model or trading back into profit. It is about the creditors.

They will try to negotiate with the book publishers and wholesalers and other suppliers who are desperate to get paid for their product and worried about their future viability in NZ. Inland Revenue want their taxes and will be first in the queue.

They will need to negotiate with the 1,000 staff who will have to have new short term contracts and will be justifiably worried about whether they will get paid at all, let alone have a future with the chain, but at the same time, will be essential should they find a new buyer for the chains.

Based on the outcome of their negotiations a decision will need to be made on whether to go into receivership which is next most likely step. If that happens, enjoy the book sale, because there will be many bargains up for grabs.

The shame of it is that (outside of the decisions that got REDGroup into this financial position) the problem in the trade is that the business model needed to change and like the music industry and other industries, the people running them don’t get it. They should have learned from the music industry, which still doesn’t get it. Other industries who don’t get it include banking, telecommunications and consumer electronics to name a few.

What should they have done and what can other retail businesses do in order to not follow Borders and Whitcoulls into the mire? Subscribe to my blog and I’ll give you a few pointers for free. It isn’t rocket science, but it is a fundamental shift in thinking, whilst also remembering the fundamental simple principles of retail and distributon.

We live in a new world, its exciting and there is a lot of money to be made, but the fatal flaw is thinking that if you do the same thing you have always done, that you will get a different result.

There is an RSS feed to this blog. Come back and read some of my ideas on how companies like Whitcoulls and Borders can thrive and prosper.

Here are a few things I would look at:

• Understanding your business
• Communication with customers
• Communication with staff
• Distribution methods
• Stock turn and inventory management
• Engagement
• In Store Events
• Proximity based marketing
• Shelf Management
• Relationships with community
• Relationships with education
• Location Based Business Analytics
• The Internet
• Gift Registry

I could and probably will go on. The answers are a mixture of the old and the new, neither of which these chains have effectively managed. Borders started in the right direction in the US, but didn’t continue the evolution. International chains like Borders and WH Smith focussed more on the  era of globalization than evolution of the business model. Something that would have made short term heroes who have probably made their money and moved on, but was only ever going to be short term.