Statcounter

Friday, November 21, 2014

What Business Are You Really In?

May 10, 1869 was an important day in American history.  That was the day that the last rails were laid in place to connect the Central Pacific Railroad and the Union Pacific Railroad, creating the Trans Continental Railroad that connected the east coast of the United States with the west coast..  Until that time, travelers from the east coast could either go by wagon or horseback, or take a boat around the tip of South America and come up on the other side of the country.  The Straits of Magellan off the bottom tip of South America was and is one of the most treacherous bodies of water on earth.  Many ships that entered those waters never came out of them.

With the opening of the transcontinental railroad, people and freight could from one side of the country to the other in about ten days, rather than the six to nine months it took by wagon.  For the next fifty years, the railroads prospered very well due to the monopoly they had in hauling people and goods long distances.

They did, however, suffer from a very common malady.  They thought that things would always be as they had been.  When Henry Ford began turning out cars by the thousands per week, and roads began to replace dirt paths, people began to enjoy the freedom of going exactly where they wanted to go instead of wherever the railroad could take them.  Trucks soon followed the cars, capturing much of the freight business, and it was not long until the prosperity that the railroads had taken for granted for so long began to fall off rapidly.

The problem that the railroads had was that they always thought of themselves as being in the railroad business, when in reality, they were in the transportation business.  They assumed that their method of delivery was the same as their business, and those two elements can be very different things.

Fast forward to January, 2012.  Kodak, a name synonymous with photographs for the better part of the 20th century, filed for bankruptcy.  In the late 90's and early 2000's, Kodak was in a battle with Fugi, a Japanese company, for dominance in the the camera film market in the United States.  While Kodak and Fuji were beating each other senseless, it seems that no one in either company noticed that digital photography was rapidly becoming the default method of capturing photographic images.

Kodak discovered too late that they were not in the camera or film business.  They were in the memories business. Film and Instamatic cameras were simply their delivery method.

Some organizations have demonstrated a firm grasp of what their real business is.  IBM has changed their delivery method to fit their real business several times throughout its history.  They are not in the computer business...they are in the information business.  Customized data processing systems is their delivery method.

Often an organization's real business can be found in its mission statement.  Wal-Mart describes itself as " US based multinational retail company that sells general merchandise and groceries. It is the world’s largest retailer, third biggest public company, largest private employer and one of the most valuable companies in the world".  It's mission statement however, mentions none of those things.  It simply says, "We save people money so they can live better."  There is no hint of their delivery system. 

Southwest Airlines has for years outperformed others in the airline industry.  Their mission?
"The mission of Soutwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit."  Not a word about airplanes. 

Disney "gets it."  Their mission statement: “The Walt Disney Company's objective is to be one of the world's leading producers and providers of entertainment and information, using its portfolio of brands to differentiate its content, services and consumer products. The company's primary financial goals are to maximize earnings and cash flow, and to allocate capital toward growth initiatives that will drive long-term shareholder value.”

You don't see anything about movies, theme parks, or cartoon characters.


Why is it so important to know your real business...your mission?  Two reasons:

1. It gives you a compass for the decisions you make!  Whenever you are faced with an either/or condition, you can ask yourself, "Does this bring me closer to or farther from the accomplishment of my mission?"  If it takes you closer to the accomplishment of your mission, do it.  If it moves you farther from the accomplishment of your mission, don't do it.  It really is that simple.

2. It allows, even encourages, you to think "outside the box."  Is your product, your service, and your delivery method the best combination of elements to accomplish your mission?  Maybe it is now, but will that always be the case?  Probably not.

The landscape today is littered with companies that did not grasp their true mission and were replaced with something better.  How many record stores have you seen lately?  Their offerings, vinyl record and later CD's,  required consumers to purchase songs they may not have wanted in order to get the songs they did want.  With streaming, music lovers can buy the individual pieces they want and make their own collections.  It was not that long ago that Blockbuster was riding high with their VHS tape rentals, and eventually, DVD's.  How many Blockbusters have you seen lately?

This line of thinking applies to individual jobs as well as organizational missions.  As a solo, independent recruiter, my mission is to help my clients run their businesses more effectively, efficiently, and profitably.  My current method of delivery is finding talented, skilled, experienced people to fill their key positions.  If I need to adapt at some point add or delete from what I do in order to accomplish that mission, it is incumbent on me to do so.

What is the takeaway here?  It is to ask yourself if you are now confusing your delivery system with your organizational (or personal) mission.  It may be time to examine your purpose.
-------------------------------------------------------------------------------------------------------------------------

Ken Murdock is the owner of Murdock & Associates Recruiters and New Wave Résumés. He recruits for the manufacturing sector, oil & gas, construction, and the packaging industry. New Wave Résumés offers professional résumés and interview coaching for executives, mid-level professionals, recent graduates, and anyone seeking to take their skills and talents into a new career.
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. - See more at: http://www.southwestonereport.com/2011/#!/thirty-thousand-foot-view/mission-and-vision
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. - See more at: http://www.southwestonereport.com/2011/#!/thirty-thousand-foot-view/mission-and-vision
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. - See more at: http://www.southwestonereport.com/2011/#!/thirty-thousand-foot-view/mission-and-vision

No comments:

Post a Comment