Thursday, November 30, 2017

This 4-Letter Acronym Will Revolutionize the Way You Think About Leadership

C.O.R.E. stands for Communication, Organization, Relationship, and Expectations. Try it today.
CREDIT: Getty Images
 She walked into my office and slumped into a chair.
“You don’t have a clue do you?” she asked in an exasperated tone, with a few extra “colorful” words thrown in for emphasis. I didn’t quite follow her line of reasoning. I was managing a large team of designers, writers, and usability experts. We had just finished building an internal website and assisting with an external site, providing design feedback and testing. The team consisted of around 50 people including all of the managers, supervisors, and what we called individual contributors at the time (there’s a friendly term you should probably not borrow). In my own defense, I was also riding high on a wave of success, having built up a team from just four people a few years prior. And, I was a young father of four kids–not sleeping much and dealing with soiled diapers at home.
“What do you mean?” I asked with a puzzled (and tired) look.
“I never know what you’re thinking,” she said.
I felt a pang of familiarity. I am a confirmed introvert, and my best form of communication involves a keyboard and mouse. My project manager had a good point, and she took the opportunity to lay out all of her frustrations in full glory. I didn’t see it at the time, mostly because I lacked empathy and couldn’t understand her point of view, but she was definitely giving me an opportunity to adjust my tactics and become a better leader. If only Slack had existed at the time, right? It’s a bit of a savior for me now, giving me the freedom to communicate effectively as a writer and think through what I want to say (and when).
Now that I’ve been mentoring and training college students one day per week, I’m back in the flow. I’ve learned a few things about effective leadership, in most cases comparing what worked and didn’t work long ago as a leader before starting my career as a writer in 2001. It’s a wonderful exercise because I’m using a newly created prescription for management with 20 people in a real-world setting but constantly comparing back to my previous jobs (which lasted about ten years). I’ve honed these lessons from the past and present into a simple acronym you can follow, called C.O.R.E. (see below).
It’s handy, because it reads like a concise field manual for what I should have done back in my corporate life and what I’m trying to do more effectively now.
Before you dive into it and read how it all works, can you do me a favor? Monitor yourself as a leader for one solid week using the C.O.R.E. principles as described below, constantly measuring all four areas and taking notes, then send me a detailed description of how it all worked out for you. Here’s the thing. I know it works. I’m living it right now, and I may even write a book about it soon because it’s something I really believe in with everything in me, so much so that I’m living and breathing it weekly. Will you do the same?

1. Communication

Everything hinges on communication on a team. It is the connective tissue. That employee who told me she was practicing the art of mind-reading with me would have loved a little more communication. In my mentoring role now, I always talk about over-communicating as a way to avoid conflict. People tend to sit on their complaints like they are warming them up for later, afraid to really talk it out. As a manager, you have to constantly ask people what they think, how they are feeling, what they would change. Feedback isn’t a checkbox on a spreadsheet, it’s a way of life. Communicate effectively and get everyone else to communicate with each other and you will have a good team.

2. Organization

That said, communication is only one part of the C.O.R.E. concept. Organization is something I’m currently working on (or re-learning from my corporate days) because it’s so important. It also takes time, effort, intention, and skill. The best leaders are alwaysorganized because they have great empathy for the people on their team and know that keeping things in order and scheduled is what every person craves. Bad leaders live in an eternal state of chaos–you don’t know what they are thinking (due to their lack of communication) and you don’t know the plan (because they are so disorganized). I’m still learning how this interchange of communication and organization play off of one another, because they really do go hand-in-hand. You can communicate in chaos. You can organize quietly. The best leaders know how to do both of those things consistently.

3. Relationship

But isn’t that all pretty cold and impersonal? Yes it is. You can be perfectly well-organized and communicate every little concept and plan to your team and still fail miserably as a leader. What makes all of the difference? It’s your ability to build a relationship. Make sure the first question you ask an employee is not about a deadline or a task, and isn’t about the org chart changes or the project that is over-budget. Ask about their kids. Ask about real life. We’re humans, we need a personal approach that is fully cognizant of what happens outside of work (also known as–the important stuff like the birth of a child or buying a new car). Does your staff know you care about them? Do you treat them like numbers or human beings? Make sure you add a heavy dose of relationship-building to all of that fluid communication and detail-oriented planning. This is where empathy comes into play–that is–your ability as a leader to see life from the eyes of your staff.

4. Expectations

Wrap up this entire package by setting expectations that are clear and obtainable. I’m not talking about setting repercussions, or establishing goals, or even communicating about some well-intentioned Key Performance Indicators (or KPIs). Set those things aside for a moment. They are tools for running a team, but I’m talking about making it clear what you expect out of an employee in terms of what they do in their role, what you want them to achieve, and where this is all heading. It’s your “must do” list, the things you care most about as a leader. That employee that was trying to read my mind long ago was not seeing good communication. She hated the chaos. She didn’t think we had a good relationship. But in the end what really ticked her off the most is that she didn’t know what was expected of her at work. Are you doing that on a daily basis? Have you told every employee exactly what you really want them to do and made it perfectly clear?
Do all four of these things and you will see changes on your team. Get serious about communication. Make organization a huge priority. Strive really hard to build relationships in tangible ways. And state the expectations like they are set in stone. It works.

Here’s who really runs Amazon — and only 2 of the top 38 execs are women

  • Jeff Bezos has diversified his business but not his top ranks.
  • An organizational chart viewed by CNBC shows only two women at the VP level or higher reporting directly to one of the company’s CEOs.
  • Amazon appears to be making an effort to have more female leaders.
Getty Images | Alex Wong
It’s a big week for Amazon.
Cyber Monday and the mass of online shoppers brought another record high in Amazon’s stock price, while in Las Vegas, the company’s cloud computing business kicked off its annual re:Invent conference.
Amazon’s 2017 rally lifted Jeff Bezos’ net worth past $100 billion on Friday, and he now towers over Bill Gates and Warren Buffett on the list of the world’s richest people.
With so much going on inside Amazon, including the hunt for a second headquarters location, CNBC decided it was a good time to find out who are the power players at this sprawling company.
We tracked down an organization chart, which is available internally but not to the public.
One immediately noticeable fact is that Amazon, like so much of the tech universe, is a company run by men. Specifically white men.
In marketplace, Prime and AWS, or what Bezos likes to call the three pillars of the business, there are 37 people under the CEO who report directly to him — or are one layer removed — with at least the title of vice president. Only two of them are women.

‘Simply right’

That theme will be clearly on display at re:Invent. Andy Jassy is CEO of the cloud unit and only one of the 15 most senior people below him is a woman.
Amazon appears to be making an effort to fix this problem. As Recode reported last month, a growing number of women are leading important parts of the company. They include Toni Reid with Alexa, Stephenie Landry in Prime Now and Jennifer Cast at Amazon Books. The company also has technical advisors, who shadow the unit CEOs and attend all of their meetings for training purposes. Currently, two of the three are women.
Still, the numbers are vastly underwhelming for a company that makes diversity part of its leadership principles. In fact, Bezos wrote in a letter last year that diversity and inclusion are not just good for business, but “simply right.” In the list below, there are no African-Americans and three people of Asian descent.
Amazon didn’t respond to a request for comment.
Most people on the list have spent years, if not decades, at the company. Jassy along with Jeff Wilke, CEO of the consumer group, and Jeff Blackburn, who runs the video and ads businesses, have been at Amazon since its early days. Dave Clark, who runs retail operations, and Greg Greeley, who leads Prime, both joined the company in 1999.
There have also been more recent high-profile hires. Babak Parviz, who created Google Glass, joined Amazon in 2014 and now runs a special team called “Grand Challenge.” Adam Bosworth, who left Salesforcelast year, is in charge of the AWS software team. Dave Treadwell, a 27-year Microsoft veteran, joined Amazon last year as vice president of e-commerce services.
An employee packs items for delivery in an Amazon fulfillment center.
Aegis Capital: This will be the best ever holiday season for Amazon  
These are the people directly reporting to Amazon’s three CEOs:
Jeff Bezos, Amazon CEO:
  • Jeff Wilke, CEO of worldwide consumer
  • Andy Jassy, CEO of Amazon Web Services
  • Jeff Blackburn, SVP, business and corporate development
  • Dave Limp, SVP, Amazon devices, digital management
  • Diego Piacentini, SVP, international retail
  • Brian Olsavsky, SVP & CFO
  • David Zapolsky, SVP & general counsel
  • Beth Galetti, SVP, human resources
  • Jay Carney, SVP, corporate affairs
  • Jeff Helbling, VP technical advisor to CEO
Tony Hsieh, CEO of Zappos
Tony Hsieh, CEO of Zappos
Jeff Wilke, CEO of worldwide consumer:
  • Dave Clark, SVP, WW operations
  • Dave Treadwell, VP, e-commerce services
  • Doug Herrington, SVP, NA retail
  • Greg Greeley, VP, WW Prime
  • Gur Kimchi, VP, Prime Air
  • Neil Lindsay, VP, worldwide marketing
  • Pat Bajari, VP and chief economist
  • Russell Grandinetti, SVP, international consumer
  • Sebastian Gunningham, SVP, Amazon marketplace
  • Steven Kessel, SVP
  • Tony Hsieh, CEO, consumer
  • Chee Chew, VP, consumer engagement
Andy Jassy, chief executive officer of web services at Amazon.com Inc.
Patrick T. Fallon | Bloomberg | Getty Images
Andy Jassy, chief executive officer of web services at Amazon.com Inc.
Andy Jassy, AWS CEO:
  • Adam Bosworth, VP, software
  • Alex Yung, VP, AWS sales China, AWS commercial sales
  • Ariel Kelman, VP, AWS marketing
  • Babak Parviz, VP, Grand Challenge
  • Brent Jaye, VP, AWS support
  • Charlie Bell, SVP, utility computing services
  • Emmett Shear, CEO of Twitch
  • James Hamilton, VP/distinguished engineer, AWS
  • Michael Frazzini, VP, games services and studios, Lumberyard Engine
  • Mike Clayville, VP, WW sales & BD AWS
  • Peter DeSantis, VP, infrastructure
  • Scott Wiltamuth, VP, AWS dev & management tools
  • Stephen Schmidt, chief info sec officer, AWS
  • Teresa Carlson, VP, worldwide public sector
  • Werner Vogels, VP and CTO
Werner Vogels, CTO of Amazon
Werner Vogels, CTO of Amazon

Drive-Thru Lessons From QSRs

By Tammy Mastroberte, Convenience Store News - 11/08/2017
drive-thru
NATIONAL REPORT — Drive-thru customers are looking for a good experience at the drive-thru and for a chain to achieve this, it must provide a combination of speed of service, order accuracy, good communication, and an easily navigated menuboard, according to Tom Cook, principal at King-Casey, a retail consulting and design firm based in Westport, Conn.
“It used to be speed of service was the No. 1 stated need of customers in the drive-thru, and QSR Magazine’s Annual Drive-Thru Survey always showed speed of service as first,” Cook explained. “But order accuracy is much more important than speed, at this point. If you drive off and have the wrong order, you are one unhappy customer.”
Cook believes the convenience store industry — especially those with a focus on fresh food — can learn a lot from the quick-service restaurant (QSR) industry when it comes to drive-thru execution and excellence. He points to Starbucks, Panera Bread and Chick-fil-A as three QSR brands that c-store operators should watch because they are getting it right.
“Starbucks is a client of ours and they made a conscious decision to get into the drive-thru business,” Cook said, explaining that in addition to a wayfinding system that includes drive-thru signage and a green stripe indicating how to navigate the area, Starbucks installed digital screens so customers can see the barista and vice versa, as well as digital menuboards.
“With the digital menuboards, Starbucks is able to communicate in real time what is available in the bakery and remove the items sold out for the day,” he said. “From an overall customer experience standpoint, they are doing the best job.”
At Panera Bread, what stands out is the staged zoned merchandising, including multiple messages to customers in the drive-thru before they get to the main menuboard, according to Cook. With this signage, Panera Bread is able to pre-sell items, including a limited-time offer or a special sandwich or drink they want to promote, he explained.
“It helps Panera sell the items they want to sell, but it also helps the customer decide what they want before they get to the menuboard,” he added.  
In terms of a top menuboard experience, Cook said Chick-fil-A may not be using digital boards, but the content on their menuboards is optimized from a business perspective and very clear, simple and easy to read for customers. The chain put “a lot of thought into where things are placed, how much space is given, how much white space to use, etc.,” he said.
“They have their entire menu up there, but it’s very clean and organized,” he continued. “They only show pictures of key products that are bestsellers, and the rest is just listed.”

Jack Ma Went From English Teacher to the Richest CEO in China Using These 6 Practices

Alibaba has become a massive success due in large part to the leadership of Jack Ma and these six practices.
Jack Ma
CREDIT: Getty Images
Without a doubt, Alibaba is an e-commerce giant. These statistics say it all:
  • In 2014, it set a record as the company with the largest initial public offering (IPO) in history, taking home $25 billion from the New York stock exchange.
  • 200 million people shop on Alibaba’s mobile sites daily.
  • The organization sold $550 billion worth of products in the 2016 fiscal year.
  • Alibaba announced annual revenues had gone up 56 percent to almost $23 billion in May.
  • Its market capitalization as of October was $473 billion.
Behind this all is Ma Yun, the 53-year-old unassuming entrepreneur, better known as Jack Ma. He started the company with 17 others in his Hangzhou apartment, a city close to China’s east coast. His seed capital was $50,000. The year was 1999.
How has he been able to hold his own in the competitive e-commerce space? What lessons can we learn from him? Below are six lessons that can help any emerging entrepreneur: 

1. Face threats bravely.

Ma believes an entrepreneur should face threats squarely and bravely.
In 2003, he launched Taobao, an eBay-like marketplace, to counter the power of EachNet, a consumer-to-consumer online platform, which had been established in China by eBay.
He just wanted to slow down the American company’s inroads into China. So while EachNet was charging a fee per transaction to bring buyers and sellers together, Taobao was absolutely free to use. While Taobao didn’t make money initially, it drew mass appearl and helped Ma face eBay’s threat.
The lesson? You may need to lose money, sometimes, in order to firmly establish your brand in the marketplace.

2. Prepare early for change.

If any kind of change is coming, Ma believes it pays to prepare early. That philosophy enabled Alibaba to fend off eBay’s strong competition in the early days.
“When we see something is coming, we have to prepare now,” Ma once said. “My belief is [that] you have to repair the roof while it is still [sunny].”
He’s already preparing for the change technologies such as artificial intelligence and machine learning are going to bring.
Even though the technologies are going to challenge a lot of job opportunities, Ma thinks they would improve lives.
To prepare for that inevitable change, Alibaba has announced a $15 billion investment in technological research and development over the next three years.

3. Make tough decisions when necessary.

Ma was forced to cut back on staff during the dotcom bust. It wasn’t an easy decision to make but he rose up to the challenge.
Even though it was painful and made him momentarily doubt the sustainability of his business, Ma heeded the tough call. Former Alibaba Vice President, Porter Erisman, recalled that this taught Ma the difference between being an English teacher and CEO.
“Being a CEO means making the tough decisions and sometimes cutting back in order to allow the company to survive,” Erisman said in an interview about Ma.
From my own experience as a startup founder and CEO, I can tell you that your ability to make tough decisions will single-handedly define your success as a leader.

4. Keep moving despite rejection.

Don’t allow rejection to cripple your dreams. Keep moving in spite of them.
Ma faced failure and rejection but he kept moving. Alibaba was rejected by about 30 venture capitalists before Softbank founder Masayoshi Son came to his rescue.
He says the string of rejections helped to build his courage as an entrepreneur. “As an entrepreneur, one of the qualities I have is that when I’m rejected by people, I get used to them,” Ma said in a CNBC interview.
Rejection isn’t always the easiest to deal with. However, there are countless stories, including my own, where entrepreneurs came out ahead through perseverance.

5. Apply yourself to relentless salesmanship.

No matter what type of startup you are, it takes relentless salesmanship to get your business off the ground.
Don’t underestimate the level of commitment this deserves. You just have got to be out there, convincing people to do business with you.
The former VP, Erisman, gave an insight into the kind of effort Ma invested into the Alibaba enterprise at the beginning. He said Ma would travel across China on road shows where 100 or 200 people would turn up to listen to him. In a kind of “mass movement,” Ma was going door-to-door to talk to business owners about why they needed to get online.

6. Engage the power of your personality.

Just like Steve Jobs (who pushed the Apple brand with his face), Ma relied on the power of his personality to convince people to invest.
While others gave detailed business plans, Erisman said Ma simply talked about his story and vision. This got him the $40 million-dollar investment offer from Softbank shortly after Alibaba was established.
By injecting your personality into your company, you’re able to humanize your brand into more than just an entity, which often leads to more opportunities.

Kroger shops for a turnaround

ClickList is Kroger’s order-online-pickup-at-the-store service. Currently Kroger has ClickList at 36 stores in the Cincinnati and Dayton, Ohio area with plans to add 30 more by the end of 2017. The Enquirer/Cara Owsley
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Kroger is on the defensive – but it's used to that. 
Throughout 2017, the Cincinnati-based supermarket retailer has battled intensified competition in the form of a price war brought by discounter Walmart and Amazon's takeover of Whole Foods.
Kroger has acknowledged the magnitude of the new challenges by trimming its building and renovation plans, lowering its own prices and halting long-term profit forecasts.
Kroger will update its progress in the ongoing food fight on Thursday when it discloses its third-quarter results. Wall Street analysts predict it will report a $360 million profit before one-time items on sales of $27.3 billion, according to Zacks Research.
Last year, the grocer reported a $391 million profit on sales of $26.6 billion.
Still, Kroger has seen tough competition before.
It became a Wall Street favorite after shrewdly outmaneuvering Walmart, Walgreens and Dollar General, which used cheap groceries to lure customers in the first decade of the millennium. While some supermarkets went bankrupt, Kroger savvily cut its own prices just enough to neutralize competitors' cost advantage - but then it also ramped up product variety and service.
Here's a closer look at their strategies to compete:

Experience is Everything in Grocery

By Jim Dudlicek – 11/28/2017
Food theater ensues as a chef prepares Asian dishes to order at Hy-Vee’s Fourth+Court store in downtown Des Moines.
I’ve been saying it for a while now — grocery stores are no longer just places to buy stuff. They need to be destinations to experience the wonders of food and the possibilities it presents to deliver on consumers’ every need.
The most compelling stores I’ve visited reach beyond the shelf and from behind the counter to inspire shoppers’ imaginations as well as their taste buds, and answer a growing list of questions that food-savvy folks have about what they’re eating.
As further support for this idea, the latest edition of the International Dairy-Deli-Bakery Association’s annual trends publication, “What’s in Store 2018,” drives home the point that grocery shopping from this point forward must be about the entire experience, which includes convenience/location, produce selection, prices, store layout and more.
This seismic shift of shopping becoming a destination experience is one of hundreds of findings in the IDDBA’s annual tome, both in print and online, including 150 downloadable graphs and tables, as well as links to white papers and trends articles.
Other findings of “What’s in Store” include:
  • Creating an experience strengthens customer loyalty.
  • Retailers that reflect the communities they serve appeal more to today’s shoppers. “Localism” is a dominant theme to help communities feel connected.
  • Top grocery trends lean toward greater digital engagement, greater access to variety of produce and product information, and meal kit options.
  • Almost 45 percent of Millennials identify as ethnic or multicultural, making the generation the most diverse in U.S. history, with food purchasing decisions no longer based on their lineage or familial customs.
“Multiculturalism is growing in the U.S. and it’s changing the way food retailers and manufacturers look at consumer buying behaviors,” said Eric Richard, the IDDBA’s education coordinator. “The result is a blurring of lines separating ethnic consumer demographics. Retailers in tune with consumer shopping patterns can provide innovative solutions on the changing palates of today’s shoppers.”
“What’s in Store” groups its findings into distinct themes: The Economy and Retail Trends, Channels and Competition, Consumer Lifestyles, and Eating Trends. This themed narrative is carried into each of the product chapters bakery, cheese, dairy and deli, which includes the growing “grocerant” world of prepared foods.
Learn more about “What’s in Store” at www.iddba.org.

Wednesday, November 29, 2017

King-Casey Makes Its C-store Industry Predictions for 2018 & Beyond

11/27/2017
A DoorDash delivery partner
WESTPORT, Conn. — Many convenience stores will see more than half of sales come from highly profitable foodservice offerings, particularly selections exclusive to a brand, according to restaurant and retail consultancy King-Casey's predictions for 2018.
The firm also predicts that:
  • By 2023, more than half of c-store brands will offer digital ordering and delivery options.
  • The number of c-stores offering drive-thru will grow by an order of magnitude, but those offering all their products through that channel are in for disappointment.
  • Brands that find ways to attract more female customers will grow their business by double digits.
"Our prediction for rapid growth is grounded in fact," said King-Casey Principal Howland Blackiston. "Current foodservice sales, which account for 16 percent of the total, are growing at twice the rate of all other sales. And at Wawa, one of the industry leaders, foodservice already accounts for 40 percent of an average store's business."
However, success is not a slam dunk for all c-stores. Blackiston predicted that winners in the channel will plan for growth by making foodservice-related investments, such as additional staffing, food-centric store design, expanded kitchens and dine-in seating options.
Additionally, they will find creative ways to visually communicate the increased focus on food and make food preparation an element of theater in order to entertain and differentiate the brand.
Successful c-stores will also develop quality "signature" food offerings, such as made-to-order gourmet sandwiches, brand-proprietary recipes, wood-fired pizza and more, according to King-Casey.
"These brands will stand in sharp contrast to those who continue to offer the generic hodge-podge of food and beverage items," Blackiston said, noting existing signature items include Dodge's, a Deep South chain known for its crispy fried chicken, and Wawa, whose loyalists crave made-to-order Hoagies on fresh-baked bread.
King-Casey also predicts that while marketers may struggle to define and reach millennials, it is clear that this generation loves technology, which means they will gravitate to the brands that embrace it. Technology can serve as the means to meet the millennial desire for convenience, which c-store brands can provide through digital ordering and delivery services.
Blackiston advised c-store operators to learn from established foodservice leaders in this area, including quick-service restaurant and fast-casual brands, as it is relatively uncharted territory. Sheetz is an example of a c-store that is already partnering with home delivery services.
"See what these companies are doing, and then think of ways to 'one-up' them to create a superior level of customer convenience," he said.
The desire for convenience will also drive growth of the c-store drive-thru channel. Early adopters and innovators include Swiss Farms, Parker's and Farm Stores. Retailers that want to invest in this area should spend time and money on properly integrating a drove-thru by focusing on thoughtful design, drive-thru staffing, on-site food preparation and strategies for visual merchandising, according to King-Casey. They should not just add a window to an existing store.
"If you try to offer all of your products at the drive-thru, you will be disappointed in the response. People use that channel for speed and convenience," the King-Casey principal said. "Adding cigarettes, packaged beverages, beer, grocery, general merchandise, candy and snacks to foodservice makes it virtually impossible to achieve the speedy throughput that customers expect. C-store brands that focus their drive-thrus on foodservice will be the winners."
Finally, with men accounting for approximately 60 percent of c-store customers, there remains a huge opportunity for c-stores to grow their business by double digits through attracting more women.
"Changes are needed because female expectations are higher than those of men. You need to move the 'NASCAR mentality' to one that's gender-neutral by projecting 'safer,' 'cleaner,' 'child-friendly' vibes. Consider décor and product offerings with the female demographic in mind, including 'better-for-you' food options," he concluded.