Category Archives: Market Intelligence

Thanks to U2, Everyone Remembers Bloody Sunday. But 80 Years Ago Today Was Bloody Thursday!

The Industrial Revolution was not easy. It was a difficult time in American History. It was a time when workers’ rights had not yet been formalized, when unions were being formed, and when America was working hard to become the world leader it is today. It was a period of progress broken up by turmoil when America was going through its growing pains.

Part of this turmoil took the form of regular labour strikes by newly formed unions trying to bring workers rights to hard labourers and some order to the chaos that accompanies rapid industrialization. This included the Wheatland Hop that occurred 101 years ago in Wheatland, California that resulted in 4 deaths and Bloody Thursday that occurred 80 years ago today as part of the 1934 West Coast Longshoremen’s Strike.

This strike lasted eighty-three days and began on May 9, 1934 when longshoremen in every West Coast port walked off the job. They were joined by sailors a few days later. It was a heated and aggressive strike on both sides. As per the Wikiepedia entry, the employers recruited strikebreakers, and in response to this, strikers attacked the stockade housing the strikebreakers on May 15. This resulted in employer’s private guards shooting and killing two strikers.

Due to the impact of the strike (as a significant amount of trade has passed through west coast ports for the last century, which is also why “Billions [are now] at Risk as West Coast Port Contract Ends” [ABC News]), the Roosevelt administration tried to broker a deal to end the strike, but the membership of the newly formed unions rejected the agreements brought to them twice.

This resulted in the employers deciding to force a reopening of the port in San Francisco on July 3, sending trucks through the picket lines which resulted in fights between police and strikers. Then, on July 5, eighty years ago today, the employer’s Industrial Association tried to force a further re-opening of the port. In this attempted reopening, which started in the morning, police shot tear gas canisters into the crowd of strikers, picketers, and supporters, and charged with mounted police. Picketers threw the canisters and rocks back. Both sides then suspended aggressive actives, refortified, and took stock.

But then hostilities resumed in the afternoon outside of the ILA strike kitchen. Eyewitness accounts differ in the exact accounts that transpired next, but the end result was that police ended up firing shotguns, striking three men, and killing two — and giving us Bloody Thursday.

At this point, the California Governor called in the California National Guard to patrol the waterfront and federal soldiers stationed at the Presidio were placed on alert. The picketers pulled back and trucks and trains were, after 58 days, allowed to move without interference. But the strike didn’t end. On July 8, teamsters in both San Francisco and Oakland voted to strike. Then, on July 14, the San Francisco Labor Council voted to call a general strike, and the Mayor declared a state of emergency. This was probably unnecessary, as the Labor Council strike only lasted four days.

When the Labor Council voted to end the General Strike, it also recommended that unions accept arbitration of all disputed issues. This resulted in the National Longshore Board making the same proposal that passed in every port except Everett, Washington. At this point, only one point and striking seamen were left in the lurch. This was the beginning of the end of the strike, and the arbitration award on October 12, 1934 cemented the ILA’s power, which still exists today in the ILWU, which was formerly known as the ILU which broke off from the ILA in 1937 and which covers the west coast district.

The ILWU continues to recognize this day by shutting down all West Coast ports every July 5. Let’s hope they, and the employers, never forget what happens if both sides don’t sit down for as long as it takes to resolve disputes and work out a deal.

Enterprise Software Companies Do Need Media Relations

In yesterday’s post, we insisted that Enterprise Software Companies DO NOT need Public Relations, because they do not. Why? Simple. They DO NOT sell to the public. They sell to big corporations. Big corporations are not the public.

Also, the messaging that you need to sell to a CFO is nothing like the message that you need to sell to an impulsive consumer. Good business is all about productivity, progress, and Return On Investment. Good public relations is all about feeling, connection, sexy, environmental responsibility, or anything else that happens to be the buzz of the day. Good enterprise relations is all about results. Public relations, like consumer advertising, is in constant flux. But the basics of good business never change.

However, the advertising channels through which business advertising have exploded, not only as a result of the rapid expansion of the ubiquity of the world wide web, but of social media as well. As a result, the complexity of media management has increased dramatically. The fundamentals haven’t changed, but the amount of work required to coordinate and manage the effort has. Not to mention the knowledge required to strategically place your advertising and messaging to stand out amidst the noise, which consists not only of a constant stream of advertising and messaging from your competitors but analysis, third party reviews, and random comments. It’s a media jungle, and unless you have a team of full time pros to manage it 24/7, you need help. Even if you do have a team, you probably need guidance.

A good Media Relations Team will help you:

  • Identify the Right Channels
    Which traditional print and online web publications are right for you?
    What are the right channels to advertise your coverage?
    Who are the right people at these outlets to reach out to?
  • Tailor the Message
    While you need to craft and own your message, you also need to recognize that different individuals at different publications who control different channels are interested in different parts of the message you have to deliver. To get your message heard, sometimes you have to focus in on the part that will get a crier’s attention.
  • Spread the Message
    Parts of your message have to spread through others, but thanks to the social media revolution, other parts have to be spread by your organization through social media channels. Managing these can be a full time job, and not the best use of your limited resources. This is best left to an expert.

In other words, you need help, but the help you need is not Public Relations. It’s Media Relations.

And if you really need someone to talk to in order to help you elicit your messaging in a collaborative fashion, hire a subject matter expert (SME) whom can also offer you project management, product development, or thought leadership consulting services. This will jump start those efforts as the subject matter expert will not only be fully familiar with your messaging, but with your modus operandi as well. As a result, there will be little to no learning curve for the SME when it’s time to start the project management, product development, or thought leadership creation. This will pay off in spades as you’ll get your project, product, and/or thought leadership done faster, hit the market faster, and see a significant return faster.

So when it comes to getting help, get the right help. Even if you don’t thank me for it.

You’re Understaffed. And You’re Not Alone. Now What? Part V

You are very well aware that you are understaffed and that you need to do something about it. You’re also aware that you may need to, or want to, outsource your category, project, or staff augmentation requirements. And, after our last two posts, you know that you better make sure that the category or project first passes the sniff test and lends itself to vended outsourcing before you get ready to ship it out.

But you still don’t know if outsourcing is the best decision. How do you determine that? You compare it to your most viable insourcing option. And how do you make that comparison?

Return On Investment

More specifically, what is the ROI of going outside versus staying inside? If you’ve appropriately qualified the project, then you should have an expected return, which you used to determine whether or not the project was incentive-friendly. The base ROI is easily calculated as expected return / expected cost.

The ROI inside will be calculated similarly. What is the expected cost of augmented staff and what return do you honestly think that person will achieve. Remember that, unless that person is a seasoned professional with lots of expertise in that category or project, that person is not likely to achieve the same return as a professional working for an outsourcing provider that tackles that type of category or project day-in and day-out. Plus, as they won’t have the same level of experience, or the same tools at their disposal as an outsourcing professional at the outsourcing service provider, and will have to deal with your organizational politics, policies, and ramp-up, it will take them longer. So even though the hourly rate of an internal resource may be lower, when you consider that more hours will be required for a lesser reward in the average, the ROI is not likely to be as high as you might initially think.

In other words, while an outsourcing firm will always make the argument that outsourcing is the clear-cut solution, it’s not always. If they are willing to put their best on the line and the category or project is suited to them, it will usually be the case that outsourcing is the right decision. But if they don’t have an appropriate expert, it’s going to take them more time to deliver a lesser reward, which you might be able to top by bringing in a hot-shot pinch-hitter for a one-off project.

In other words, there’s no one-size fits all answer and each project will have to be judged on the merits of keeping it in versus the merits of sending it out. And if you need help with that analysis, get a third party consultant to help you make that decision.

You’re Understaffed. And You’re Not Alone. Now What? Part IV

By now, you are well aware that you are understaffed and that you need to do something about it. You’re also aware that you may need to, or want to, outsource your category, project, or staff augmentation requirements. And, after our last post, you know that you better make sure that the category or project passes the sniff test before you ship it out.

That’s a good start, but if the outsourcing is going to work, it probably has to be vested. So before you check off outsourcing as a valid option for consideration, make sure it meets the requirements for a vested outsourcing arrangement.

  • Outcome Focussed
    A vested outsourcing arrangement is outcome-based, not transaction based. If the project is not focussed on an outcome, such as cost reduction, value add creation, etc., and is merely focussed on transactional invoice processing, it’s not a good candidate.
  • What Focussed
    A vested outsourcing arrangement can define the outcome irrespective of the how.
  • Measurable
    The outcome can not only be clearly defined, but can be objectively measured against a well-defined scale.
  • Incentive-Friendly
    The measurable objective can be used as a foundation for performance incentives to incentivize the provider to perform better.
  • Joint-Governance Friendly
    The category or project lends itself to insight based governance, where you work with the supplier to overcome challenges and obtain better performance.

If you check all of these boxes, then outsourcing is a very viable alternative. But is it your best one? At this point it all comes down to what your insourcing option is.

So how do you make your final decision? We’ll address that in our conclusion to this series.