REGISTER | LOGIN
Breaking News
Blog

The Importance of Planning

NO RATINGS
View Comments: Newest First | Oldest First | Threaded View
DMcCunney
User Rank
Author
Re: But it was cheaper!
DMcCunney   1/9/2016 2:27:39 PM
NO RATINGS
@Nanette10: Many of us in our industry, especially marketing with the all-important responsibility to know the market and correctly position the company and its products, can learn some important lessons from this.

I concur.  You start by knowing what business you are in, how it works, and what is required to succeed and prosper in that business.  I think I've lost track of the number of businesses that foundered because new owners came in who didn't understand it, and attempted to manage it they way they managed a completely different business.  Fail to understand that different businesses are different, and must be run differently, and you set yourself up to fail.

I'm not sure a penalty clause in the contract would have made a real difference, if the underlying problem was that the new contractor simply didn't have the capacity to actually do the work required.  I wonder how clearly the scope of work was understood by both sides, and I agree with the B-school professor who talked about the need to do more work up front in planning the transition and insuring they got it right.  A penalty clause in the contract would have recovered costs from the contractor, but wouldn't have helped with subscriber dissatisfaction.

"We're penalizing the contractor who isn't getting the job done!"

"Good for you.  Where's my paper?"

>Dennis

 

nanette10
User Rank
Author
Re: But it was cheaper!
nanette10   1/9/2016 2:04:16 PM
NO RATINGS
Hi Dennis,

You're right, according to what I've read. The cost savings was one reason for the move to a new delivery service. The second, supposedly, is customer support. Many home delivery subscribers canceled their subscriptions because of sub-par service from the former group. Globe management thought the new group would do a better job, based on how it had done in other regions of the country. The publisher, who happens to be a wildly successful money manager and an owner of the Boston Red Sox, had promised to put the cost savings into making the paper better. 

One of the Business columnists wrote a piece about the mistakes management made in the switch. The biggie -- they didn't put a penalty clause into the contract. Yikes! Here's the link to the column: http://bit.ly/1O4R4Sx

Many of us in our industry, especially marketing with the all-important responsibility to know the market and correctly position the company and its products, can learn some important lessons from this.

nanette

Max The Magnificent
User Rank
Author
Re: Oooh, Oooh...
Max The Magnificent   1/8/2016 11:13:30 AM
NO RATINGS
@Nanette: ...the Globe's advertising slogan was "Have you Seen the Globe Today?"

OMG -- now that is funny!!!

DMcCunney
User Rank
Author
But it was cheaper!
DMcCunney   1/7/2016 9:18:46 PM
NO RATINGS
I'm willing to bet the Globe's call on changing delivery vendors came down to cutting costs, and the new contractor promised to do it far cheaper.  Given the financial pressure the Globe has been under (and I'm actually a bit startled it still exists), I'm not at all surprised that the Globe might see a handy way to reducing expenses, and when large $ signs float in executive's minds, they tend to obscure minor details like whether the bright idea would work.  An awful lot of decisions get made on the basis of what people want to be true, and founder when it isn't.

I have to wonder about the Globe's due diligence, and whether anyone confirmed the new vendor had the capacity to handle the deliveries.  I culd believe a "no" answer to that question.

>Dennis

 

nanette10
User Rank
Author
Re: Oooh, Oooh...
nanette10   1/7/2016 7:03:12 PM
NO RATINGS
Hi Max,

I wish I had a great comeback. Alas, no such luck.

In the '70s, the Globe's advertising slogan was "Have you Seen the Globe Today?" That's a bit of a joke these days!

Clive
User Rank
Author
Oooh, Oooh...
Clive"Max"Maxfield   1/7/2016 6:07:58 PM
NO RATINGS
Oooh, Oooh ... can I tell my joke?

      1st man:  "Have you got the globes?"

      2nd man: "No, I always walk this way!"

(With a nod to Morecambe and Wise)

Most Recent Comments
Olaf Barheine
 
realjjj
 
EELoser
 
realjjj
 
EELoser
 
realjjj
 
realjjj
 
perl_geek
 
sranje
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed