19.10.2008 Values

Managers Learning From The Nuremberg Trials

“Our Heads Are Round so our Thoughts Can Change Direction” [Francis Picabia]

Thanks to friends like Sapphire, I discuss lately questions of Ethics and Morale. If you like to join into the discussion, I recommend you our SapPhilosophy blog.

"If I wouldn't have done 'someone else' would have" — Neither was: “If I wouldn’t have done ‘someone else’ would have”

If I look at the managers today, they hide behind the same old reasons as did the people with powers in the Third Reich. Did we not learn from the Nuremberg Trials? Oh, I am German and this is about Nazi-Deutschland, I am not supposed to touch it…? Come on, this is history and we should learn from it.
The Nuremberg Trials clearly condemned the idea “I was under orders” or “If I did not do it, someone else would have done it”. Company X publishes an increase in revenue of 15, 20% but anounces about the same time job cuts of about the same many employees? Who decided? Who is the responsible boss? He did not know? Get outta here! The Nazis all were the same innocent. But charged guilty and many got hung.
So maybe we should call in for a new Nuremberg trials – and look at the current managers and politicians? Look into the mirror: You, for yourself. What do you do? Can you maybe improve on your personal (and also corporate) morale and ethics? Are you guilty?

21.09. I referred to the “Gray Gentlemen” from Michael Ende’s bestseller Momo. If you don’t know it: They are stealing the time of people and the people become busy and successful and rich, but poor in the true luxuries: Time, family, friends.

And if you believe in God, do you truly believe your soul is anything but black, if you just pray to the gods of wealth? How many families you condemn by hiding behind the above excuses? Or the one calles “Shareholder Value”? If you are a shareholder? Aren’t you responsible if the management of the company you own part of works that way?

A month ago I/we also addressed the 10 New Commandments. I would very much appreciate if you read them and also that you let me know what you think about them. Or if you find them truth and spread them!

No. 10 quotes the Serenity Prayer:

God grant me the serenity to accept the things I cannot change,
courage to change the things I can,
and the wisdom to know the difference.

12.10.2008 Values

What Is Luxury?

What is luxury to you? Is it the ability to travel the world? Is it a challenging job? Is it time with your family and kids? I do appreciate your feedback!

The luxury of my life was to get my eyes lasered. Some of you may recall me with the glasses. Thank goodness I got rid of them – sometimes reading glasses, I do not get younger either 😉

Currently the luxury I want is to be Married with Children 😉

To achieve this, I think I prefer a decent job. The fun part on that one: If I send out an application (even if on demand), I usually do not even get an answer. And that is especially in the hospitality industry… Excuse me? I would consider it an honor that you apply with me and a common courtesy to tell you if you don’t fit my needs.

Ahem. What's the Question? — Ahem. What’s the Question?

Not to answer is a typical sign of what is wrong today in the travel industry. It is a service industry. Decent treatment of applicants and staff, decent salaries and work hours are complains I hear all over the places. Be it travel agency, airline, or hotel industry…

Two side notes: This is a pre-prepared post as I return today from Russia. Interested to know more? Let me know! And I sure will write a summary of my experience with that trip.

December 3-5 I will be doing a workshop and a presentation at the conference in London. If Sales, Marketing and CRM in hospitality are your business, I sure appreciate to see you there 🙂

21.09.2008 Values

Are You Good At Selling Yourself?

A discussion on LinkedIn triggered thoughts about personal priorities in business. And keep in mind that it’s the (wo)man in the mirror that makes a change (or doesn’t).

I do think we far too much try “selling” and many people have forgotten the good old habits of reliability, honesty, trust and faith. We spend all our time making money to spend on luxuries and saving it for spare time we do not have. We forgot how to live.

Many managers nowadays aren’t any better than Ebenezer Scrooge and one just wishes the Ghosts of Christmas to visit them! What is important? The money you make? The money some unknown investor makes? Welcome to the Grey Gentlemen! If you are a manager, what are your values? Think about it!

14.09.2008 Values

From: http://bringmearock.blogspot.com/
By Edward J. Fern, Time to Profit, Inc.

Throughout the time I was employed by others, I played a game I call, “Bring Me a Rock.” The game has thousands of minor variations but they all follow the same basic format.

The game begins when the boss calls me into his or her office and invites me to have a seat. Over the next several minutes of extended conversation, the boss’s message can easily be summarized in four words, “Bring me a rock.” I’d then return to my own cubicle or office and construct a list of the features I believed the boss’s rock should have and begin to study where and how such a rock might be developed.

Hours, days, weeks, or months later I’d return to the boss’s office and proudly place my rock squarely in the middle of the desk. Aghast or at least disdainfully, the boss would ask, “What the #e!! is that?” Gently I would remind, “You asked me to bring you a rock.”

“That,” derisively, “is not the rock I wanted.”

Then I would inquire, “Can you tell me about the rock you want?” “Yes!” emphatically, “I will know it when I see it!”

Eventually my last boss got tired of the game and let me know I was being laid off. As I heard his words, I realized that I too was tired of the game.

If this has happened to you, this blog is just for you.

23.08.2008 Aviation, Sales, Values

General Sales Agents

This week I addressed the issue of General Sales Agents (GSA).

In general, the GSA is a very good idea. If you cannot afford your own staff, why not share with other companies just as yours? There are two major hurdles:

1. In many cases, the GSA is considered a “second class employee”, as they only spend a part of their time on your product. My recommendation: Have the key people (reservations, sales) invited within four weeks to your location to get familiar with your product, philosophy and work style. Have them meet the decision makers personally they need to have contact to. This will not only motivate them, but also make them truly represent you in their respective markets. Repeat this frequently. Your GSA sales representative(s) usually should be invited to attend your sales meetings. I have seen results by thus motivated staff, that exceeded the results of an entire airline office in another market. And listen to them. Their prime interest is (or should be) to increase your revenue and make your product sales stable.

2. In other cases, GSAs work on a “minimized effort” scheme. Instead of sharing the resources properly, they try to tweak the last dollar out of you, until you recognize they just drain you. Ensure to have an as close contact to their sales teams as you have to your own. Ensure to have a clear manpower commitment. It is reasonable for a GSA sales person to have three or four, either similar or complementing products. I have seen cases where one person was asked to fully represent six or more products.
That might work, if the products are complementary, but that is not the common case.
Assure to have your GSA benefit fair from all sales in their region. In that case they are interested to support you to spread your distribution channels. Otherwise they will try to keep all dropping through their office, limiting the market awareness.

So GSA can be a very good thing, there are many very good and motivated GSAs out there working 150% in their client’s interests. But ensure that the principal and the GSA work on the same goals. Set targets. Find a GSA that has experience in your market. Not only the branch, but also the global region. Ethics, work style, etc. do differ.

The GSA is not a panacea. They need reasonable funding. But usually, you can pay them a base fee covering their normal operations, with marketing funds depending on the revenue they generate. But check what interest they have to sell you!

If you have questions or wish to select a GSA in Europe, ask me. And if you want to build your team and seek experts for sales, business development, reservations, etc., let me know, there are some good out there seeking a decent job 😀

03.08.2008 Values

Banking Mafia

I don”t know if this is a specific German issue, but lately a lot of deals become public, where banks and analysts are found to abuse their power to increase the IPO-value of startups or systematic damaging of reputation and corporate value i.e. by publishing misleading information or cancelling given credits without cause, just to take over control of dependent companies. So Joachim Hunold now filing official protest against Dresdner Kleinwort is sure an overdue step. Even German national television (ARD) named that lately in a report “Mafia-methods”.

So with my respect: Good luck Mr. Hunold!

27.07.2008 Values

Do you eat insects?

No? I couldn”t make you consider eating that scorpion? Hmm… How about Lobster? Shrimp? That is something different? Okay. They live in the sea, they are larger. But matter of fact, they both are crustaceans! ^[1]

So what are cultural differences all about? I was asked lately – by a beautiful lady I must admit – if I wouldn”t have problems the different culture and mentality…? From what I learned doing international sales and projects: Sales as well as friendship are based on mutual respect. That includes to (temporarily) accept local customs and traditions, as well as those of your guest. To be friendly, honest and trustworthy are keys to success. Lies have an extremely low half-time and they tend to hit you in the back at the most awkward of times.

^[1] Based on a comparison by Gordon Ramsay
^[2] Image Ron Harris

13.07.2008 Values

There are no strangers! Just friends, I haven’t (yet) met…

The past weeks were very difficult to me. I have been asked for expert opinion on the impact of the crude oil price explosion and potential counter measures. With my background on technical projects, there seems an expectation, that I”d support the idea of tweaking cost by reducing staff further and adding technology as the panacea. In my eyes, that is short-sighted and simply stupid. As are airlines cheating the passenger …

1st semester in Marketing: It is far more expensive acquiring new customers than keeping existing ones. And far more expensive to recover a lost one. Customers selecting your product only because of the bargain price have no loyalty. Reliable business? Only if you use the opportunity to make them a loyal customer!

This is what the subject of this post is all about: Sale is personal. Service is personal. IT solutions can support staff by handling (a lot) routine work, mass mailings, etc. IT must be part of the distribution portfolio. But it can only handle the “bread and butter business”. Business development?
Addressing angry, mishandled customers with a friendly face or a personal phone call, I learned to be far more effective. Make them your friend…

And with travel becoming more expensive, the product becomes “luxury” again. Luxury usually implies a more personal sale and service! You better be ready…

29.06.2008 IT, Values, WIG

Revolution arising?

Taxes are not levied for the benefit of the taxed [L. Long]

Richard Eastman lately forwarded a mail to me: What is a Billion

It started to trigger a thought. I started to discuss with friends. I got … frustrated.

Having started with “a clean account” after World War II, Germany is now Third globally in state indebtedness. Paying off 1 Billion a year and no interest on the debt, it would take Germany 130 years to pay off. It took the politicians only some 55 years to reach that point.

Okay. So our national debt is unmanagable (or so the politics tell us), but instead of consolidating our national household, we spend +12 billion for development aid in other countries? That is a +140% increase compared to 2003 and is more than 50% of what the (somewhat larger) U.S. spend. If we keep the pace, we surpass them in 3-4 years… Austria and Switzerland together spend about 3,5 billion. China or Russia do not even show up on the chart. So we have the luxury to further increase taxes (Germany”s tax rules exceed the tax rules of all other worldwide countries together), add on to bureaucracy – but we have no money to provide child day care centers?

With the WIG-project, I also learned that such development could not be financed in Germany. Sure, I did not believe it – all basic technology has been developed and brought to prototype, aside the know-how, there are funds available. What a shock to learn (from DLR!), that these funds are “meant for basic research, not for R&D to convert existing technologies to products”…

Germans emigrate. We become an emmigration country – while Ireland or Portugal, the former poorhouses in Europe convert to immigrant countries.
An “unword” in Germany is the “migrator”, people trying to come to Germany. No, they are not immigrants in the eyes of the politicians – they are neither integrated.

I saw a report lately on the Weimar Republic (the one that lead to the Third Reich). I don”t know, if I was the only one, striken by the similarities. Oscar Lafontaine is called a demagogue even by the respected press and he mentioned on TV lately he feels that to be a compliment (I compare to Weimar Republic!). People vote for extremist parties – because the Grand Coalition in power today fails to address any of the peoples needs. Polititicans wonder, why the voters get tired of voting? Extreme parties increase their influence. From what I hear on the streets:

We are sitting on a tinderbox … with a short and already burning fuse.

Footnotes:
¹ I am a fan of space travel, get this right. I doubt, NASA being very effective, so I love commercial projects, such as Mars Direct or SpaceShipTwo. I believe NASA has become a bureaucratic dinosaur needing commercial competition.
² Humantiarian Aid is not in question. What I question is “monetary aid”, known to end up anywhere but where it”s needed. And to increase the amount spent (by +140% in five years) when consolidating the national household is said to be a top priority.

22.06.2008 Aviation, Sales, Values, WIG

Alternatives in Aviation – Cheating the Passenger?

The Cassandra-effect: When I addressed the situation on the crude oil market to airline managers earlier this year, looking back I feel like 1994, addressing the Internet: I was “the freak”.

The kerosine price explosion sped up the szenarios I did address. Just a brief recap of my theses: Flying will become a luxury again. How much longer until the low-cost-airlines need to update their models? The cost of operations exploding, airline managers become “creative” (the current FVW special addresses their dilemma). In order not to increase the visible price, airlines charge extra for each and every “standard” service. Kerosine charge, taxes, airport, credit card and even invented fees, a (increasing) fee for each and every bag, for the meal, the inflight entertainment, excessive passenger weight. This “procedure” is extremely short-sighted with a negative repercussion: The travelers feel cheated, the “public opinion” strikes back.
Airlines (not only the low cost) reduce frequencies, park aircraft. No longer records in aircraft orders, options are being returned to Airbus, Boeing, etc.. Am I the only one to see these facts? Kerosine-powered travel is doomed, new solutions will now be developed, tried – and succeed!

Some years ago, Jürgen Weber, at the time the boss of Lufthansa, questioned that the use of light crude oil may need to be confined to the aviation industry as all other industries would have possible replacements. So it is not the question that airline travel will become expensive again. Who in his right mind believes the crude oil will become cheaper again? Evolving into a luxury product, I question the “cost reduction” on staff and services. A friend lately compared it: They try to sell a Rolls Royce with wooden benches.

What now these weeks to me came nevertheless as a big surprise. In some of my presentations, I used this idea of a WIG powered with a hydrogen-engine as an example alternative to the fuel-consuming aircraft.
Meanwhile, I received a serious inquiry, asking if this is realistically possible. Research confirmed the feasability of the idea, so now the idea is being addressed with investors. Can it be true that I may become an “aircraft maker”???

While discussing this szenario ideas suddenly are being considered that have been Science Fiction from the 60s until today. Surprisingly even for me, who these people are, asking me for my ideas and opinions. Obviously, the prices finally exceeded the point, where such “Science Fiction” leaves the fiction and becomes a viable concept and a commercial possibility.