The Shiny Object Above Has a Basic Core
A disco ball is quite shiny on the exterior. And when looking at it, no one thinks about how boring the core of it is. It is styrofoam and glue. Well that's not sexy. Neither is database consolidation, data cleansing, migration from green screen technology and CRM replatforming as a few examples.
In that vein, there are two types of companies out there today. Those that started with styrofoam and those that are trying to start with mirrors. We will call the first set of businesses the "haves" and the second set the "have-nots".
The have-nots want what the haves have. It is a simple concept and one that you see in all aspects of business. And the have-nots, especially as their situation worsens, grasp for more shiny objects at an even faster rate.
IT IS EASIEST TO SEE THIS IF YOU ARE SEARCHING FOR A JOB
How many of you have had a recent conversation about a role where the job spec was less than a page or possibly nonexistent? Do you all remember when those job specs were 4 pages long clearly articulating exactly what success looked like in a role? What changed? It certainly is not the complexity of the role. It is because companies do not know what they need.
The have-nots are recruiting for unicorns. As they don't understand what Generative AI is, what Blockchain actually is (no, it is not crypto) and that we are in Web3, how could they possibly write a job description? They can't. They are looking for the person that can wave a magic wand and connect all of their databases, cleanse their data and build internal models overnight so they can capitalize on all of the newest technologies.
When you have a conversation and ask questions about the state of their data and where it all sits, they are bored and wonder why you haven't wowed them with how you will install AI in all of their functional areas and save them billions. They ultimately pick up someone from outside the vertical because on paper, they have done it all. 12 months later, that person is out because the "styrofoam" wasn't there.
OUTSIDE OF THE FORTUNE 100, SHOW ME A STRATEGIC PLANNING DOCUMENT THAT COVERS THE BASICS.
I'll be generous here. Maybe 25% of those companies have strategic thought and investment against fortifying their core operations (styrofoam and glue) to lay the platform for newer technologies (mirrors). When strategic planning transfers to operational planning, every department is banging their head against a wall wondering how to tell the Board that they need to invest in their green screens and databases to allow for the strategy to be realized. And after that presentation, all of the operators are on their asses unemployed because they clearly "aren't up to the task of operationalizing the strategy". And another year goes by recruiting for unicorns and making limited progress against the strategy.
At some point, this ridiculous cycle has to end. It either ends with industry consolidation (haves buy the have-nots) or Boards start to realize that their executive teams are too visionary without the ability to recruit and rally the team to actually execute.
ACQUISITION AND CROSS-SELL EFFICACY IS DECREASING, NOT INCREASING
Marketers are starting to see significant efficacy drops in their spend and without better data, analytics and technology, they are at risk as well. In the last 5 years, US advertising spend has increased at a rate in well in excess of population growth + inflation. How can that be? They are moving marketing at a fervent rate to less costly digital and social channels. Well, since 2019, digital advertising impressions have increased 4x. Yes, 400%. So one can argue efficacy is in the toilet and irrelevant clutter is costing everyone more and generating less.
And my proud Marketing friends, you too know you are part of the problem. You are presenting during your company's strategic planning how AI is going to reduce your cost to acquire, increase conversion rates and vastly improve cross sell and retention while damn well knowing there is no styrofoam or glue. You quietly support your Data and Analytics function behind closed doors during operational planning to avoid the axe yourself. But, because your costs are rising and efficacy dropping, you're axed anyways.
SOMETIMES IT MEANS GETTING THE BASICS RIGHT
If you are in the have-nots category. Get honest about what needs to be done. Listen to your network that tells you that you are 10 years behind the curve. Do the basics they suggest. Buy some styrofoam and glue. Not to get political, but you are doing the same thing we seem to be doing around EVs. Great to set a vision. Absolutely something needs to be done. But you NEED A PLAN. And if your grid can't support your vision, you better get investing in a new grid.
If you are searching for a job, be honest about what needs to be done. If you only tell a company what they want to hear, you will be back on the job hunt in 12-18 months and no one is better for it.
If you want to discuss further or simply bend an ear about your situation, or your company's woes, book some time with me. Happy Friday.