Corporate Reputations, First Impressions, and GoDaddy

In the social media era, the only thing that spreads faster than a wildfire is a company’s reputation.  Like individual reputations, corporate reputations can be subject to exaggerations and overblown incidents which unfairly malign the organization with one broad stroke.  Recovering can take years.

This isn’t limited to small startups.  If you look at the reputations of General Motors and Volkswagen – both of which are embroiled in high profile legal challenges, you see that General Motors has attacked their issues head-on, while Volkswagen has been stonewalling (for a great write-up on this, go here). Chipotle would be another example of a company under stress that has lost some of the shine from their reputation.

But some reputational problems can be 100% intentional and self-inflicted, to wit GoDaddy.

What interests me about GoDaddy is my belief that what is true for people is also true for young companies:  You never get a second chance to make a first impression.
GoDaddy-Tempe

We all remember GoDaddy’s infamous advertising campaigns a few years ago which caused Super Bowl-watching families to dive for the remote due to the overtly sexual (and female-degrading) nature of the commercials.  GoDaddy clearly decide to “go big” as they sought to establish their name.

This tack isn’t a new one.  Many companies will happily offend or disgust viewers if it cements the “name”. As the old Hollywood adage goes, “I don’t care what they write about me as long as they spell my name right”.  I assume GoDaddy was delighted with the outcry and resulting attention since they continued this strategy for a few years.

Thus I was interested in this interview with Blake Irving, the new CEO of GoDaddy (since 2012).  My first impression of Blake is that he is a high-quality, principled leader.   Here’s an excerpt from the accompanying article that captures the challenge:

Four Powerful Words Used By Brilliant People

There are a number of classic fables that I enjoy because they are as relevant today as they were centuries ago.  They’re classics for a reason.  One story that we’re all familiar with is The Emperor’s New Clothes written by Denmark’s Hans Christian Andersen in 1837.

emperors-new-clothesAs you recall, the Emperor is tricked by two weavers to believe that the magic clothes they created for him were the finest in the land but could not be seen by anyone unfit for his position or “hopelessly stupid”.  For this reason the Emperor can’t admit to himself that he can’t see his clothes, so he proceeds to parade before the townspeople as naked as the day he was born.  The townspeople, also not wanting to appear hopelessly stupid, go along with the charade until a child – too young for the artifice and pretense common among adults  – points out the obvious: the Emperor is, in fact, naked.

The video below is a snippet of such a moment from the movie Big. The key point is around the :20 mark when Josh Baskin, played by a young Tom Hanks, nervously raises his hand.  You remember it:

There are three things I love about this scene:

  1. I love that Josh is ignoring the blather about market growth and segments and immediately begins touching, turning, and trying to figure out how the toy works.  I have a suspicion that many people don’t exhibit curiosity in how their product works in the actual world after they leave the office (or even while they’re in the office).  Its good to remember that the financial results are the output, but the product is the input.
  2. After the pompous marketing executive finishes presenting his business plan to the executive team, they give him a round of applause.  It heightens the insular, self-congratulatory nature of the group.
  3. The real magic of this scene however is when Josh states the four magic words: “I don’t get it”.

What Gymnastics Teaches Us About Competition

Most of us who watched the recent gymnastics competition at the 2016 Olympics in Rio found ourselves stupefied by the talent displayed by the diminutive athletes.  To say that the routines seemed to be gravity-defying is an understatement.  I mean, how do you even judge these?  When the television commentator says that an athlete did a triple-flip with two-and-a-half twists, I can only take her word for it since most of the time I can’t see what’s going in inside the airborne flurry of arms/legs/leotards that ends in a “stuck” landing.  The athletes often remind me of the Tasmanian Devil of cartoon fame, who was always winding himself up in a cyclone of indecipherable motion.

If you’re like me, you may start to wonder:  how have these performances changed over the years?

Below are two videos.  The first is a video of Cathy Rigby – every bit the household name at the time as Simone Biles is today – doing a balance beam routine at the 1970 World Championships in Yugoslavia (a former Soviet “republic”).  Viewed through the lens of the 21st century, the commentator’s reaction to some of her moves are at times as amusing as the video itself.  The second video is Simone’s balance beam routine at an international event prior to the Olympics in 2016.

How Empathy Impacts Your Personal Brand

When I need some fresh air and a mental break I like to go out on a walk and listen to a podcast (note:  I will pull together my favorite podcasts for a future post).  I find podcasts to be an excellent way to listen to engaging information on my schedule.  Since I spend a lot less time in a car than most people (my commute to work involves walking down some stairs to my home office) I don’t listen to podcasts in the car as many people do.  But for me, listening to great content while moving my body is relaxing and engaging at the same time.
empathy

On a recent walk I was listening to this episode of Tim Ferriss’s podcast.  It was a short recording where Seth Godin answers a number of questions and basically holds forth for thirty minutes or so on a range of topics.

One of the questions Seth addresses is the creation of a “personal brand”. Seth emphasizes that good brands deliver what the customer needs and does so consistently.

Story setup:  Seth got started in 1986 selling books to book publishers.  According to Seth, in 1986 “book publishers needed more books than they had”.  Seth and a team of people created books that Seth tried to sell to the book publishers – who rejected him “again and again and again and again” until he crafted his message “in a way they could hear me”.

Here’s Seth (bold text is for my emphasis):

Caution! Reorganization Ahead!

“Hi Mike.  Sorry I couldn’t get back to you sooner.  We’re going through a re-organization and things are pretty hectic here.  We’re going to need to let the dust settle a bit before we can move ahead with that project we were talking about.  Check back with me in a couple months.”

I have heard some variation of the above message too many times to count throughout my career. I’ve heard it so often, I’d probably be better delivering it than the caller.

I am convinced that some companies exist only to reorganize; its their only core competency. It’s almost like when things get too normal, management gets bored.  And as we all know, the devil makes use of idle hands.

I state the following unequivocally:  I believe that corporate reorganizations destroy billions of dollars of shareholder wealth annually.

It would be interesting to see financial analysts (the people who analyze the value of a firm on behalf of investors) to get wise to this.  I remember an investor in the Silicon Valley – where, at the time, building big corporate headquarters was in vogue and rooted in corporate vanity – tell me that his rule was to “short the stock of any company building a new headquarters”.

Similarly, there may be an undiscovered investment strategy tied to shorting the stock of any company going through a reorganization.  The only problem with the theory is that so many companies are in a state of perpetual reorganization that it would be hard to limit the fund to only a few.

Below are some points on how to think about re-organizations from the perspective of a leader and a team member.  Before that, three cautionary notes:

REEEJECTED! Overcoming Rejection.

The exclamation in the title – Reee-jected! – was what my friends and I would yell at each other when one of us, while defending a shot on the basketball court, got “all ball” and denied the shot. When you’re a mediocre basketball player of modest height, the feeling of rejecting a shot borders on euphoria.  But real rejection – the kind that all of us have experienced – is no fun at all.  But if we get our mind right, we can overcome and prosper in the face of rejection.

bono-U2

Everyone gets rejected.  It’s amazing to read rejection letters like the one above.  It reminds you that rejection is part of the journey.  My favorite line from the rejection letter to U2?  “We wish you luck with your future career”.  Thanks!

What If Your Browsing Habits Were Printed?

I have written about Cal Newport’s important book Deep Work.  I’m a subscriber to Cal’s blog, where he writes about ways to cultivate the habits necessary to ditch the electronic distractions of our age and focus on sustained concentration.  One of Cal’s chief recommendations is to dump social media for a period of time (optimally, forever).

aziz-ansari-wants-to-join-house-of-cards-and-other-goodies-from-his-reddit-ama

In a recent blog post, Cal shared some great (and comic) insights from Aziz Ansari from his interview on the Freakonomics podcast (something I also subscribe and listen to).  Here is an interesting thought experiment from Aziz – who is definitely a deep work kind of guy – about why he doesn’t have social media apps on his phone:

“Like, here’s a test, OK. Take, like, your nightly or morning browse of the Internet, right? Your Facebook feed, Instagram feed, Twitter, whatever. OK if someone every morning was like, I’m gonna print this and give you a bound copy of all this stuff you read so you don’t have to use the Internet. You can just get a bound copy of it. Would you read that book? No! You’d be like, this book sucks. There’s a link to some article about a horse that found its owner somehow. It’s not that interesting.”

Two Steps To Cultivate Your Reputation

In a career, reputation is your greatest asset.  I’m going to give you two quick and very practical thoughts on how you can enhance your reputation responsibly and gain more influence.

lncoln-seal-signature

First, a disclaimer about where reputation comes from, courtesy of the 16th US President, Abraham Lincoln:

“Character is like a tree and reputation is like its shadow. The shadow is what we think of it; the tree is the real thing.”

So the disclaimer is that for the advice below, we are not ignoring the tree.  Character gives birth to reputation.  If you have a lousy character, stop reading and go work on that.

OK.  Here’s my first observation about reputation:  Don’t wait for applause.

All of us have been around people who resemble a guy I once heard described this way:  “after he says something he sits back and waits for applause”.

Kindness: A Business Virtue

The middle school my daughters attended had a simple motto for the students: “Be Kind”.  It was a mantra within the school and served to emphasize the importance of kindness as a virtue to the young students who were in a critical time of transition in their lives.  But I have also noticed how kind people tend to succeed in all walks of life, and I believe kindness is becoming more of a defining virtue because so much power today is wielded via influence rather than formal control.

(ra2studio / Shutterstock)

(ra2studio / Shutterstock)

Yes, there are many powerful people who got to their position by being surly, aggressive, and cutting corners (and people) whenever they could gain some advantage. But the reason why I believe that kindness builds influence more than ever is that it helps people be better listeners and enables them to empathize with co-workers and customers alike, which in turn fosters loyalty and effectiveness.

However being kind becomes more difficult as the tension ratchets up. The pressure to drive big results with few resources in a short time period causes us to become focused on ourselves and our problems rather than others. Suddenly, the people we interact with might appear to us to be tools to be used in pursuit of our objectives.

When we do this we become less kind, which means we listen less, learn less, and make emotional withdrawals from relationships.

Here is a quote that I ran across a number of years ago that haunted me. It comes from Nadezhda Mandelstam, in one of her memoirs about the Russian Revolution, and noted the dearth of kindness in the Russia of the 1930s

“Once there were kind people. Kindness was considered a virtue, a social grace, so that even people who were not kind felt they should pretend to be. This pretense, this hypocrisy, was noted by clever writers, who exposed and mocked it. The result of all that mockery is that now there are no more kind people.…”

If you want to increase your influence, start with a little kindness.

Good luck!

Nudging and Hiring: What’s Going On?

Regular readers of this blog are familiar with my interest in the “nudge”. A nudge is the subtle use of behavioral research to impact how we behave. The sign of a good nudge is that, well, there’s no obvious sign of it at all. Much of the nudge thinking emanates from a UK government entity (now private) officially called the “Behavioural Insights Team” but more colloquially referred to as the “Nudge Unit”.

UK_Nudge_unit_report_2013-2015

A nudge is often associated with influencing “choice architecture”, or how choices are presented to us.  Example: some females perform better at math tests if they are asked about their gender at the END of the test rather than at the beginning since research has shown that asking women about their gender at the beginning of the test can, for some test-takers, trigger anxieties about gender and math causing them to perform below their true capability. By re-architecting the choice, a negative nudge is removed and the test becomes a better representation of mathematical ability.

Below is another nudge example. The symbol on the wall in the picture is of a shrine, but there is no shrine nearby or behind the wall. Why is it there?

Dean-Karlan-photo-contest
If you guessed “so people won’t urinate on the wall out of respect”, you are right. That’s an example of a nudge. Oftentimes, a nudge like this works much better than a sign that says “no urinating here”, as you can see from the picture below I took in India a few years ago.  Note the guy urinating to the left of the painted sign.
urine-photo

Both of the pictures above were used by the smart people at Freakonomics, who have done a number of creative podcasts and posts on the subject of nudges.