Have you ever experienced a Lego Block? No, I am not talking
about the children’s building toy. Lego Block is short for a Leadership Ego
Block. It is when someone in leadership in your organization decides they have
a better idea than everyone else around them and they refuse all other ideas
but their own.
There is typically a very good reason to listen to business
leaders. They did not get to where they are without good ideas – particularly
those who have successfully launched and grown a business. However, there is a
bit of hubris that can sneak into the thinking of many business leaders – they begin to believe
their ideas are far superior to those of their customers. Thus, when the
marketing feedback from their customers runs counter to their own thinking, the
Lego Block occurs.
How do you guard against Lego Blocks if you are in charge of
marketing for your company? It is not easy to buck the ideas of the boss, but
logic would tell you that the boss is not the customer. Which leads to the
first step. Make sure you have a good feel for who is and who is not a
potential customer. Define your target market. It doesn’t matter what your
nephew’s next-door neighbor thinks of your marketing if that neighbor is never
going to buy anything from you. Second, listen very carefully to your target
market. How do you do this? The very simple answer is to ask them their
opinions. There are some marketing experts who will tell you we have moved past
the effectiveness of customer satisfaction surveys because the only customers
who fill them out are unhappy customers. I do not follow this logic, but there
are other ways of hearing what your target market is saying. One way is to
measure your analytics. How do analytics help you to "hear” what your customers
are thinking? By measuring your web traffic, especially that which is driven to
a specific part of your site by your marketing, you can get a good idea of what
interests them and what does not by their habits – how long they stay on a
page, what they click beyond the page they land on, how many times they come
back to the site, etc. But there are also analytics that will tell you other
sites they browse. What are their trending likes and dislikes based on what
they view?
Back up the opinions of your customers with facts and then
build your marketing upon them. If the boss steps in your way, you have the
customer stats to back up your marketing directional choices. If the boss
continues to give you the Lego Block, you may want to put some more facts on
the table, namely, some big name egos that took their companies the wrong
direction, such as:
Reed Hastings, CEO and founder of
Netflix who, in 2011 announced that the DVD service would split from the
streaming service and take on a new name: Qwikster. Sold as a quicker way to
access DVDs, customers found that it had quite the opposite effect. Customers
threw a fit and Qwikster was dropped one month after it was launched.
Ronald Johnson took over retailer
J.C. Penney after leading Apple Retail. He made sweeping changes in the way the
stores operated, including getting rid of sales and discounts that were a long-time
staple of retail marketing. The company lost 25 percent of its year-to-year
revenue in his first year and his tenure lasted less than two years before he
was fired.
Robert Nakasone was the CEO of Toys
‘R’ Us in 1998. His tenure was only 18 months as he desperately tried to turn
the bricks and mortar toy stores around by downsizing, reducing inventory and
closing stores. What he failed to realize was that toy buying was going online.
Startup online retailers were making it easy on consumers to skip the long
lines and get toys shipped directly to their homes, especially during the
Christmas season. Instead of consolidating to order and fulfillment centers,
Nakasone paid Amazon to take over online orders for Toys ‘R’ Us. If he would
have paid attention to trends among his customers, Toys ‘R’ Us would probably
still be the leader in their industry. Instead, they filed for bankruptcy in
2018.
If you can help it, avoid the Lego Blocks. Some times
business leaders get it right, but you can never outguess your customers.
_____________
10 CEOs Who Made Huge
Mistakes by Will Bridges, BPlan.com, https://articles.bplans.com/10-ceos-who-made-huge-mistakes/
Personally Disrupted: 14 CEOs Who Got Axed After
Failing To Navigate Disruption, CB
Insights, July
17, 2019