Monday, September 24

Thinking Different: New Ideas For Solar

Sometimes watching the various communication gaffes and tit-for-tat soundbite stalking during campaign season is almost unnerving. It makes for a case study example of all the most basic public relations rules (e.g., there is no such thing as private communication) and sometimes entertainment, but it really doesn't move much forward. It's an exercise in attempting to drive up negatives. That's about it.

But what the nation really needs are solutions, and I don't mean some of the solutions that are typically presented as contrasts during the political season. I mean the kind of solutions that don't subscribe to red-blue ideas. Here's one example of what we ought to be hearing from a presidential candidate.

How to make alternative energy work without the nonsense. 

There have been many schemes cooked up around solar energy. The worst of them, probably, was Solyndra. It received at least $70 million from a Department of Energy loan guarantee without much of a business model, proving why government is best left out of corporate investments based on preferred policy and not profitability. Government could have created the market instead of the company.

What might have worked is a government program that gave distressed homeowners (and then later expanded to other homeowners) guaranteed loans to have solar panels installed on their homes. They could make the purchases from any U.S. owned and operated solar panel company, creating jobs fueled not by government directly but by consumer choices in the new market.

The loans would be paid back, plus a modest interest rate, from any excess energy sold back to power companies (not the already distressed homeowners). The immediate benefit for the homeowner would be a reduced power bill, thereby either increasing their disposable income or stretching any benefits from local, state and federal programs. The immediate benefit for the power company is that it can sell any excess back on the open market. And then it gets better.

Once the solar panels are paid off, the distressed homeowner could collect excess income from the power the solar panels generate. If they are on a federal program, half of the energy sold could be deducted from what they normally receive in government aid (giving them a modest boost and freeing up government program money) and move them closer to independence, not further away from it.

It would also reduce the environmental impact of solar farm schemes that aim to turn large parcels of land into solar wastelands (and displacing whatever ecosystem that exists there). Instead, it moves solar panels where they belong — on real estate already wasted (e.g., roofs). At the same time, the guaranteed increase in demand would eventually lead to cheaper solar panels, opening the market to people who can purchase them outright without having to wait 25-35 years to see a return on investment or seek government assistance.

This kind of program wouldn't necessarily work everywhere, but it would in Nevada and many other states with a similar climate. It would have been especially worthwhile to Nevada because the state doesn't currently export any significant energy (fossil or otherwise). Indirectly, however, it would benefit every state because this idea would lead to energy independence and possibly rein in volatile energy prices.

Diatribe is dangerous because it depresses new ideas. 

What does this have to do with communication? Everything. As long as people are polarized between moving toward alternative energy (without a clear understanding of it or its economics) and tapping traditional energy solutions, everybody is too busy trying to sell their plan without looking for new ideas. How can they? They are too busy selling whatever is on the table.

While I am certain that my little idea isn't perfect and would probably need some fine tuning (thousands of pages if it is a government job), it's an illustration of what might be possible if people invested their time in solutions rather than whose idea and ideology it might be or what they can get out it.

Instead of politics, it produces a win for every stakeholder, while stimulating the economy, protecting the environment, and nurturing energy independence. It helps people in need, opens a new market, lifts the economy, and brings in private enterprise (without looking like a payoff to past campaign donors). It is absolutely ridiculous these things need to be at odds. At least, I think so. What do you think?

Friday, September 21

Imagining Futures: Social Media For Groceries

Every weekend, my wife sets time aside to fill our grocery list. We used to go together, but our schedules have made this almost impossible and our new shopping system a little less spontaneous.

I cook four nights a week. She cooks three. So my list is written up nice and tight, while she still likes to search for coupons and buy a few spontaneous treats or plan a meal depending on what she sees.

Mostly, she alternates between two stores, Albertsons and Smith's. They both have their advantages and disadvantages, sometimes depending on sales and the day of the week. Price, quality, produce diversity, butcher diversity, and name brands in stock all make a difference on who wins for the week.

Recently, I've noticed another factor that might contribute to how we shop. Both stores are starting to promote apps to make things easier. It's sounds great, but let's be honest. Despite being electronic coupon books, the current apps don't really do enough.

Grocers have to stop thinking mobile and start thinking physical. Specifically, apps cannot be modeled after what exists. They have to be modeled to promote customer objectives. I know it will likely make shelf renters cringe over the loss of impulse buying, but groceries are prime social business candidates.

Many grocery stores are going mobile, but not nearly enough. 

For starters, both of them want you to enroll and provide your email address. You know why. Customers come last. These apps aren't about you. They are about the store and adding you to an email list. Good grief. Isn't it sufficient that I wanted to shop at the store enough to download an app? Never mind. Let's move on...


Abertsons. The app is unattractive and not very intuitive from the start, but that's not the trouble. Other than e-coupons and a store locator, there isn't anything surprising or inspired. Let's point out one flaw.

For example, one of the marketing points is to make your shopping list using the app, but that lacks a tangible physical connection. Since it isn't tapped into the store inventory, you can add items you will never find in the store. It doesn't sync your list against its own e-coupons. And it doesn't organize the list by store layout (or even department), which means a lot of wasted time.

So other than advertising and maybe six e-coupons, why do I need this app? The first generation app is mostly useless, but at least I could try a few things before signing up for an account and spam.

Smith's. It's a better looking app that not only works for Smith's, but all Kroger grocery store brands too. Good enough, but then what? The weekly ads and e-coupons are nice enough, but each one wants you to sign in to add them to the shopping list.

So I did. It's much more intrusive than Albertsons, but I played along and added my Shopper Rewards number. My registration failed, it said, because my number is already in use. Right. By me.

I skipped that step and then had to confirm my email. Do they know how frustrating it is to leave an app to do that? I went to my desktop to save a step only to find that the confirmation hadn't even arrived. I double checked it and resent it from the app. Nothing (not even in my spam folder).

There is nothing like technology to remind you how fragile brands can be. That's as far as I got.

How to reinvent a grocery store app that works for the customer. 

First things first. Scrap the accounts on the front end. You can entice me later with things that make sense — special account-only offers and recipes that I don't have at home — but let people shop in the meantime.

The first thing people want and need is a store locator, which both apps are already equipped with (so that's easy). But after the store is located, the app ought to adjust to a physical layout of the store.

Then, when I start to add items to my list, the app ought to check approximate store inventory, apply any e-discounts and coupons, and arrange the list using a geographical layout of the store. That way you are sure that all your dairy items are picked up in the dairy section.

The app ought to allow for branded and non-branded items. Consumers have different tolerances for different items. Sometimes not having Comet in stock can be a deal breaker. Sometimes it just matters what napkins are on sale. Flexibility is the key and helpfulness raises the bar — e.g., maybe you can segment and merge lists based on regular purchases like milk, eggs, and bread to help people skip retyping everything. All this would not only make sense, but also merge the high tech and high touch.

Want to go a step further? Some grocery stores allow orders and pick- ups anyway. So it only makes sense to have the 'option' to send the list in advance of a shopping trip (along with any special butcher cuts and deli meats). The customer can choose whether they want to do more shopping in the store (while only their special items like meat and deli are prepped) or have everything bagged (assuming you are specific) in advance for a nominal fee of $5.

If $5 sounds too light, you have to think long term. As long as it's done right, people will have a hard time giving back the hour or two they saved. If you want to go a step further, add $20 for delivery.

All of it delivers on the brand promise that both groceries are missing right now. Grocery apps are great but they need to marry the in-store and out-of-store experience. At the same time, it would win over customer loyalty and reduce wait times because the app might already have your debit card info for the express self-checkout or (perhaps) already be factored in by the assembly team before hand.

Wednesday, September 19

Interesting Opinions: Wi-Fi Is Not Enough?

When I read the article with Glenn Lurie, an AT&T executive who sees every new consumer device before they are released, I was surprised. Although it is not his call alone, he has taken the position that Wi-Fi is not enough.

"We try to look for all the opportunities in the world to get the OEMs to understand that they shouldn’t be building two devices," he said in the All Things D interview. "They should be building one device with Wi-Fi and 4G. It’s more efficient for them than having two [product] lines."

He believes it is a simple matter of education. Consumers must learn that they need always-on connectivity, he said. Naturally, eliminating Wi-Fi only would serve AT&T too. More connections means more subscribers and more subscribers means a better revenue model if they choose AT&T.

I appreciate his candor, but the comments immediately following the story tell another story. Even with the best of intentions, Lurie is out of touch with the customer. People see subscriptions as traps.

Understanding the consumer mindset and product usage. 

It really isn't that hard to understand. People opt for Wi-Fi only iPads and tablets so they don't have to pay for another cellular subscription. Many of them believe the phone subscription is enough.

From the consumer perspective, it makes sense. It even has an historic context. The number one reason that newspaper and magazine subscriptions dwindled is because people are genuinely tired of subscriptions that eventually begin to feel like utilities — fees you have to pay for the basic services.

Among monthly fees, publications are frequently the first to go. Especially if your income is unstable (tip workers, etc.), elective subscriptions go twice as fast. So you have to pick and choose from a long list of fundamental and elective expenses.

For most people, mandatories include: electric, gas, water, municipal services, mortgage payments, car leases or payments, car insurance, telecommunications, mobile telecommunications, cable or satellite, and taxes. Now add health insurance (especially with new government requirements) and life insurance. Immediately following those payments are the electives, ranging from gamer accounts and clubs to gym memberships and lawn care. All of them cause a dwindling supply of disposable income.

Where do iPads and tablets fit? For many but not all consumers, it's closer to the bottom because those who opt for Wi-Fi only are satisfied with using their smart phones when they are on the go and Wi-Fi only when they have access at home, work, the hotel, and a growing number of other venues (both public and private hot spots). In fact, given how many places are adding Wi-Fi and AT&T's support of such hot spots to cut down on system overload, it seems more likely Wi-Fi is preferred (doubly so because some functions require Wi-Fi access to work). All things considered, why pay more?

Obviously, some people do have a need. The split between the products is generally 60 percent Wi-Fi only and 40 percent 4G. The slight advantage Wi-Fi has is a lower model price and no subscription fee after you purchase the product. But there is even more to the story.

AT&T and other providers have contributed to Wi-Fi only sales with usage throttling, data usage caps, service issues, roaming charges, high overage changes, etc. Maybe it's not the consumer who needs to be educated. AT&T could learn something about consumers and make 4G more tempting.

Making a better future to marry Wi-Fi and 4G. 

I'm not one of the many people who equate AT&T with the evil empire. I genuinely prefer them as my phone provider, think they have better customer service, and they recently did us right by offering advice on how to handle our phone service (for three phones) while traveling in a foreign country.

So how do carriers sell always-on connectivity? For starters, they could break away from device subscription models and replace them with account subscriptions instead. If you already have an iPhone, your iPad subscription is, gasp, inclusive because you're less likely to use both at the same time.

Or, they could implement lifetime plans built into the product price much like they did for Amazon Kindle (with a better fallback for usage overages). Or, they could give people the option of buying 4G-ready devices without a subscription, allowing them to add it (or drop it) at their leisure.

Of course, they could improve their system so it isn't affected by high-usage customers (thereby killing the throttle concept). And, if they are among those who want to regulate Internet traffic and bandwidths, they could give it up and stay focused on their core service to provide a better experience.

Simply put, it's not education that consumers need. They need an incentive, especially those who get along fine without 4G connectivity, using their iPad mostly around their already Wi-Fi friendly home.

Remember. AT&T is pushing "Think Possible." And right now, people think Wi-Fi everywhere, which is a better fit with Steve Jobs's old vision to make a contribution to the world by making tools for the mind that advance humankind. Something like that makes subscriptions optional.

Monday, September 17

Making Social Physical: Social Media In Restaurants

Every time I read a story that pits high touch against high tech, digital against physical, or the Internet against brick and mortar, it annoys me. These articles are worthless. The advice is nonsense. The agenda is forcing small business owners to pick one thing or the other because the future is coexistence.

I was reminded of this recently when a mutual group member (David Lopez) of mine posted an article about Mobile Point-of-Sale (POS) technology in restaurants. This article doesn't pit high tech and high touch against each other. It marries it. And this technology is only the tip of the iceberg.

The customer perspective of handheld devices.

When I was traveling in Vancouver a few weeks ago, two restaurants had already adopted mobile point-of-sale handheld devices. Specifically, the server asked us if we needed anything else and we said no, so she pulled out a handheld device. Right there, she swiped the card, allowed me to review the charge, and we were done. The handheld even listed tip options, automatic tip percentages (5-20 percent) or hard dollar amount.

Contrast this to the traditional method practiced by most restaurants. You finish your meal and the server eventually brings out the check. Most people let it sit there awhile, finishing up any remaining edibles and conversations. Eventually you slip in a charge card and it sits around until the server has time. They pick it up, take it back to the register, and then bring it back to you to sign (and calculate the tip in your head).

The traditional method means something as a simple as paying a bill can take five to 20 minutes or more. The tech-savvy solution clocks in around two minutes. The customer wins because several points of contact become one point of contact (and you can leave when you want) and the restaurant wins because everyone who has spent time in restaurant knows that table turns impacts the bottom line.

The only semi-odd thing about it, from my perspective, was having the server stand by while writing the tip. I generally tip 20 percent anyway (a old good habit from my days as a reviewer), but it felt awkward. But I imagine this feeling would pass pretty quick if it was considered a norm.

POS technology is only the beginning: iPad menus rock.

One of the restaurants that adopted POS technology went one step further. At LIFT, the menus are iPads (and better than their website). It is the most amazing experience. The menu is divided into sections — appetizers, lunch, dinner, dessert, wines, etc. You pick a section, scan the list, and then pull up a picture and description of the dish you are interested in before placing your order.

I can't remember the last time comparing and picking a dish was so easy. There were no guesses or surprises. It also helped establish one of the best first pre-meal impressions of a restaurant ever.

The iPad menus really made my creative wheels spin too. There are so many remarkable things a restaurant can do with social technology and take it to the next step. What if customers...

• could tap their smart phones to the menu and receive the menu app?
• could tap their smart phones and subscribe to a content rich blog attached to it?
• could tap their smart phones to enter a contest to win a free lunch?
• could order their meals or request specific seats before they arrived?
• could receive a survey the next day instead of trying to do it at the table?
• were invited to an upcoming special event or special menu sampling?

After just completing a two-year social media contract with a restaurant in Las Vegas, I can attest to the fact that although social media can deliver a return on investment (30-80 check-ins a month, noting that only about 10 percent of all people actually check-in), traditional social media models don't go far enough for restaurants. The primary reason is that they are too focused on impressions and captures (local searches, of all things) and not focused enough on the customers at the table.

Specifically, most restaurants are so comfortable with the old media model — impressions in magazines, phone books, etc. — they have been conditioned to think that applying old media rules to new media is all that can be done. Sure, some of them receive a lift if they implement a social media program, but the real magic of a successful restaurant in the future will not be social media as another marketing silo.

Restaurants that look at technology as an extension of their physical location rather than a means to attract people to a physical location will be the ones with the best bottom line. And those that do it in the United States now (while the recession still makes people think twice about eating out) will be light years ahead of their competitors in the future. This post only scratches the surface.

By the way, I would like to add something about LIFT, given they helped inspire the story. Hands down it was the best meal, best service, and best experience of every restaurant we visited while in Vancouver. And as someone who once wrote dining reviews of some of the finest establishments in Las Vegas, I would have given them five stars, perfection. And yes, the harbor view helped too.

Friday, September 14

Managing Change: Public Relations Can Be Proactive

By most accounts, the biggest hurdle in the Chicago teachers' strike has been performance evaluations. It's not new. Los Angeles and Boston recently adopted performance evaluations too, some of them signing on with reservations. They are afraid the evaluation process will be unjustly used to let teachers go.

The good news is that the Chicago strike may be nearing an end. Among the concessions: Evaluations of tenured teachers during the first year could not result in dismissal and later evaluations could be appealed. There are some new benefits added in an effort for both sides to make concessions.

The question that always looms is how long will these concessions remain viable? There is, after all, a big difference between negotiation and compromise. The first involves two groups working together toward a solution. The second involves two groups offering concessions, which sometimes looks like a solution but often breaks down because it isn't a solution. It just moves things forward.

Where public relations professionals can affect positive change. 

Strikes are often publicity generators for hardened deal makers. But if public relations professionals were allowed to interject on the more strategic aspects of a crisis, something else might happen.

If we adopt and expand the definition of public relations beyond communication as it had been in prior definitions (and assume practitioners embrace it) rather than confine it, public relations may have prevented the Chicago strike because it could have helped mitigate an evaluation process designed by teachers and the administration as opposed to just the administration well before it made it into a contract negotiation.

They had the time. Falling test scores is hardly new. It has been noted for a long time. But the debate about it usually becomes heated during contract negotiations and elections. That's when most evaluations are made on an "accept it/reject it" basis. The fact that it becomes a sticking point so late in the game undermines the intent of the evaluations in the first place.

In theory, evaluations usually have several functions. They can help evaluate student knowledge. They can show teachers where to improve or what works. They can provide benchmarks to map trajectories.  So on and so forth.

Most of that is tactical so it needs to be pulled back a bit. The real issue here is that students are not prepared to advance because they lack fundamentals but they somehow are advanced anyway. And perhaps more importantly, some of them do not develop the critical love for education that they need (the one area where charter and private schools seem to excel more than any other factor, it seems to me).

Everybody ought to be asking the same question. How do we instill a love for education and help children succeed? Ideas from all quarters ought to be proposed, worked out, and tested by a mutually agreed upon evaluation system (phased in as suggested before) before it becomes the law of the land.

This requires open communication, which is a potential function of public relations. Why do the teachers think students are failing and is this belief valid? Why do the parents think their children are failing and is this valid? Why do the administrators think education is failing and is this valid?

This would have been a better approach by the administration. Preventative public relations.

Another lesson for public relations in negotiation. 

Although the Chicago teachers' union seems to have found some language that makes these evaluations more tolerable, there is a better lesson for public relations practitioners. Every "accept it/reject it" demand can be better met with a counter solution.

A counter solution is any measurable program that offers a better outcome than the proposal. Had the Chicago teachers' union (or teachers on their own) proposed a potentially better or provably better evaluation system, then the media would have been less likely to zero in on performance, salaries, etc. as a contrast to the evaluations proposed by the administration.

Instead, the media would have likely compared the two evaluation systems. And teachers, like I believe most do in their hearts, would have looked like they were interested in the students more than what they get. That is what teaching is all about it, isn't it? In fact, it's why I lend some of my time as an instructor.

For the public relations practitioner, the point is pretty simple. Always consider that you may not have to make a choice based on a "black/white" scenario laid out in front of you. You can set the communication and solution parameters by being proactive in planning or be better prepared to change the conversation for the benefit of equally important publics.

Wednesday, September 12

Dueling Crisis: The Chicago Teachers' Strike

At first glance, most people would size up a teachers' strike as a crisis communication problem for city government. Not this time around. The decision to strike in Chicago created a quadruple crisis — for government, unions, teachers, and parents. Everybody is going to lose this time, especially the only people who are not part of the clash: the students.

The assessment of a quadruple crisis on the quick. 

Government. It's not exclusive to Chicago, and exists in many major cities. After years of giving into collective bargaining concessions (some smart and some not so smart), government has run out of fiscal room to continually reward lackluster results and downward trajectories. There is no money in the coffers for salary concessions. There is increasing pressure to save failing education systems.

In an effort to meet somewhere in the middle, Chicago seemed willing to approve a generous salary increase, but wanted to end undergraduate teacher tenure and add evaluation methods that would usher in a new era of educational accountability. You can see where they often place the blame — teachers (and sometimes unions).

Unions. The unions have done a tremendous job building an infrastructure to elect politicians who rubber stamp concessions and force out those who will not. The amount of money used for lobbying and political campaigning is mind boggling but not surprising.

Unions make their money based on how much money their members, voluntary or mandatory, contribute. They also need to win every year in order to justify their existence. So, it is in their best interest to protect teachers with more years in the system (tenure), protect the employment of every teacher (regardless of results), and always seek out more money, which in turn generates more cash for lobbying, political campaigns, and their payroll. You can see where they often place the blame — government.

Teachers. While each city is different, Chicago teachers have done better than most. The average salary is around $71,000 per year in a city where most household incomes is around $46,000 per year. But despite this salary discrepancy, it is no picnic to teach in a city with severe economic problems and a higher than normal percentage of at-risk children who attend school every day just to get a meal.

While not all teachers on are board with the union or the strike, those that are want to preserve job security, earn salary increases (because they have hit their caps), and avoid accountability for student performance. The latter isn't because of what most people think. By the time many meet new students, these students are already broken or behind. Most of them place the blame somewhere else — parents.

Parents. Other than teachers, there isn't a more diverse group in the mix. Most parents want their children to receive a better education than they received, but they see that school systems across the country are failing to engage students and instill a love for learning that is necessary for success — even  if their children are better suited to enter the trades (which I'll address another time).

Sure, there are a few who are dismissive, either believing that a failing education system cannot help their children at the onset, devaluing it because of their own occupations, or treating the system like free day care. But I don't think this describes most parents. More likely is that many parents are already stretched too thin to invest an hour on homework every night or, in some cases, they themselves don't understand the material their children bring home. And then there are those who struggle with everyday discipline, let alone education. As the most fractured group, they place blame wherever it is ideologically convenient for them — mostly government, somewhat teachers, occasionally unions.

There are no 'group' heroes in this mix. 

The educational system that was created in most struggling cities is broken because it was designed with the best intent until the best intent was sidelined for winning on issues (some fair and some not so fair). So as groups, there are no heroes because each of them contributed to the mess that exists today.

If you are looking for heroes, you can only look for individuals. Somewhere in the mix, there are politicians who are willing to do whatever it takes to build an educated work force. There are teachers who work longer unpaid hours, doing everything possible to fix the problems they inherited. And there are parents who even though they feel helpless, still instill the importance of education in their children.

But as groups, you will mostly find governments giving into union pressures and political clout with parents too readily taken in by campaign material. At the same time, union wins convinced enough teachers to go along for the ride (or be silenced out of fear). It wasn't always this way, but it is today.

The reality of teacher evaluations, overall. 

While the one takeaway today fits better into education than public relations (which I will be covering as a living case study), there is only one solution that fairly addresses the principal cause of the strike. Despite best intentions, I cannot see how a teacher evaluation system can be implemented across the board on an already broken system despite my own belief that every school system needs one.

So maybe it's time for the good people of Chicago to have a reality check — a hard and fast K-12 evaluation system on teachers, especially one that relies on test scores, isn't fair for one simple reason. But rather than focus in on the problem, I'd rather offer up the solution that addresses it.

Evaluation standards would have to be imposed in phases, starting with K-3. Then, whatever evaluation is put in place would follow the kids into future grades, middle school, and high school. Any other method causes problems because too many children have been passed up with a deficient education.

Ergo, it's not fair to expect a 10th grade teacher to produce 11th grade students when they are given an abundance of 10th grade students with a 6th grade education (or less). However, if the evaluation system was phased in, then there would be no excuses. A 10th grade teacher with 10th grade-ready students will be able to prepare them for 11th grade or even further.

Teachers in the lowest grades would be the first to be held accountable for the class but not every student. Students who are deficient can receive special help or be held back. The point here is simple enough. Fourth grade teachers would not inherit students who are not ready.

The pressure to perform would also be mostly erased, being more likely to look for students who are struggling as opposed to teachers who are struggling. However, school officials could take a closer look at any teacher whose entire class slips. Make sense? You can hold teachers accountable based on class performance, but not necessarily every individual student.

I have more insights on the teacher evaluation topic and some education pitfalls, but I'm looking at a public relations topic for Friday. You see, it seems to me that Chicago is mistaking politics and propaganda for public relations. But on the contrary, public relations is rarely so divisive.

 

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