Common Sense for the C-Suite

CORPORATE & STRATEGY VOL. 4 | ISSUE 4 | DECEMBER 2015
COMMON SENSE
THE OPPORTUNITY IN 2016:
LISTEN, LEARN AND BE BOLD
How to Be Relevant in an Increasingly Competitive and
Complex Environment
FOR THE C-SUITE

COMMON SENSE
2
VOL. 4 | ISSUE 4 | DECEMBER 2015
Once upon a time companies could offer a single
high-quality Product or Service and find loyal
(paying) customers. Companies dictated the terms
of the relationship and communicated to consumers
accordingly. The media supported this interaction,
serving as both an advertising and public relations
medium through which companies could convey
benefits, features and pricing to the public.
Things have changed.
The power to influence purchase decisions has
shifted from companies to people. And in doing so,
people expect companies to solve their problems
and fulfill their needs, while simultaneously
advancing and championing their interests. This
typically requires companies to forge deeper
relationships with their customers to learn about
their opinions and to understand their context,
preferences, challenges, and opportunities. Doing
this well results in people (consciously or not)
viewing the company as relevant and valuable
because their products and services make their
lives better.
In fact, companies that make doing business with
them the easiest decision a person can make always
win. It’s the reason Nike offers and innovates across
athletic shoes, apparel, sports equipment, software,
merchandising, and digital. Today’s leading brands
around the world know people judge them by their
thoughtfulness, quality, convenience and innovation.
Companies who successfully give back people’s
(increasingly limited) discretionary time and make it
even more enjoyable, earn their loyalty.
These new expectations imposed on businesses by
consumers are precisely the reason why companies
are scrambling more than ever to Stand Out.
The troubling reality is that the very effort many
companies are putting into being different is
exactly what’s causing them to blend in and sound
the same.
1. “We provide technology and services to enable consumers, merchants, and
other participants to conduct commerce in our ecosystem.
2. “…reservation app and website that lets you discover and book amazing dining
experiences — when and where you want.”
3. “We are innovators in technology, products and services and our company’s
core values are reflected in our culture and leadership.”
4. “[We are the] most customer-centric company where people can find and
discover virtually anything they want to buy online.”
5. “…one of the world’s leading providers of digital television entertainment
services delivering a premium video experience through state-of-the-art
technology, unmatched programming, and industry leading customer service.”
6. “…digital concierge service focused on making every part of the dining
experience better, for both restaurants and diners.”
a. Reserve
b. Table8
c. Time Warner
d. Direct TV
e. Amazon
f. Alibaba
Answers: 1.f., 2.b.,
3.c., 4.e., 5.d., 6.a.
Guess Who?

COMMON SENSE
3
Today, business decisions and communications
suggest that a company must be some kind of
solutions-oriented technology business in order to
be given any time of day by customers, investors and
business partners. This means offering products
that involve sophisticated technology (think: Apple
or Intel) or services that are powered by technology
(think: Netflix, Amazon, Uber). It also requires talking
about a company’s value in terms of consumer
lifestyles (think: “At Home” and “On-the-Go”).
While not all companies’ efforts feel authentic, it
is easy to understand why so many are eager to be
characterized as a solutions-oriented technology
company. Technology companies evoke a cool kid
air, a commitment to the cutting edge and supreme
quality. Lifestyle positioning makes the decision
to purchase easier for people because it directly
connects the applicability and benefit of the product
(or service) to a person and his/her life. Plus, a
growing emphasis on experience helps people feel
special, valued and satisfied by their purchase
(increasing their likeliness to buy again – the Holy
Grail!).
The surplus of energy dedicated to being different
has caused companies to be the opposite, to operate,
interact and communicate just like all the other
cool kids. In 2016, it’s time to shift the focus from
being different (which is having an adverse effect)
to being needed and desired by current and next-
generation customers.
There are many perspectives available about how to
stay relevant. Let’s focus on the data companies can
use to BE relevant: who’s actually relevant today and
what might be the ultimate stress-test to evaluating
lasting significance?
HospitalityTelecommunicationsTransportationApparelCompany

COMMON SENSE
4
The value of knowing your customer is nothing new, nor is it
surprising. Customers remain an invaluable resource to influence
and inspire product and service development, improvement and
creation that will matter and make a difference to them. Because
there are more resources than ever to learn about existing and future customers, it is imperative companies
focus on what they are looking to learn and the behaviors they are interested in monitoring. This information
should include what matters to customers broadly – how they operate day-to-day, their challenges and
interests – as well as how customers use a company’s products and services. Key sources often include: social
media, call centers, sales CRMs, digital analytics and surveys/NPS scores. Whichever sources are selected,
companies should use and overlap more than just one. This will allow them to discover specific, interesting
nuggets and trends that they can act on or address.
Business performance metrics, such as sales and earnings, and
employee data from sources, such as Glassdoor and social media,
can help companies understand their strengths and gaps. While
some say it’s important for companies to know the business they’re
in, with the rate of change today, it can be more helpful for companies to know what they do well. This gives them
the flexibility and confidence to apply these core competencies and expertise in new ways (think: Apple).
Understanding the zeitgeist and global trends, helps companies
remember the context in which they are developing their
tools, conveniences and luxuries for people. Discussing what
current opinions and perceptions mean for people (and in
turn a company’s business) with employees can help companies identify and plan for both core business
disruptions and future product applications faster. There are specific sources of information, such as influencer
conversation analysis and predictive modeling, which can formally help. Informal observations made and
discussed by leaders and the promotion of work/life integration are informal sources that can also offer
valuable insight.
Companies can’t fake being relevant. Relevance originates from having substance that is validated by people.
But there’s good news: with more ways to assess and gage the degree to which people find a company’s
products and services valuable, there are also more ways to identify future opportunities for growth. These
sources pull from internal and external data. They involve listening and learning. From here, new opportunities
to differentiate from competitors and better serve and converse with people are identified. In other words,
companies are left with a 360-degree performance review of how valuable they are to people and where they
can evolve or earn new business.
THREE TYPES OF DATA TO MONITOR AND
IMPROVE YOUR BUSINESS RELEVANCE
Customer Data
Business &
Employee Data
Industry &
Influencer Data

COMMON SENSE
5
Perhaps being
needed and desired
by people is easier for younger companies, like Hulu
and The Honest Company. After all, they should
be more in tune with the needs and interests of
societies today, as well as the technologies available
to power operations, because they come from the
same time. However, 90% of startups fail. Demand
and flawless execution challenge and affect any
business. Nordstrom is a great example of a company
with a 100+ year history that is evolving according to
people’s tastes, challenges and interests.
WHO IS RELEVANT TODAY?
Founded in 2008, Hulu
is a premium streaming
subscription service that
specializes in offering
current season content from five of the largest
U.S. broadcast networks. Not too long ago, it faced
fundamental challenges to its business involving
the quality of its content and viewer experience. (It
seemed unable to compete with YouTube, let alone
Netflix.).
Faced with increasing pressures from new and
existing competition, Hulu turned 2015 into the
unofficial Year of the Viewer by acquiring and
developing shows and movies people were looking
for. They also made enhancements to people’s
viewing experience. As a result, the company is
experiencing an 85% increase in viewing year-over-
year and a 60% increase in consumer signups.
How Hulu approaches 2016 will speak to what they’ve
learned from viewer data and consumer trends. Time
will tell how Hulu redefines TV next. Will it continue
to prioritize content acquisition and development?
Or, will Hulu move beyond the Content Wars to find
new ways to connect viewers to great stories?
The Honest Company, a stylish,
eco-friendly consumer goods
company founded in 2011, came to
fruition because of two consumers’
frustration with family and home
products. Understanding what ingredients were
in the products they used with their families was
confusing and the non-toxic options lacked everything
they wanted – effectiveness, price and style. As a
result, this burgeoning business emerged to create
not just the best products, beautifully, but also to
deliver them to families at their doorstep (and now
through their favorite family retail options).
The founders’ deep knowledge of today’s zeitgeist
emanates from its products’ Apple-like design detail
and its Uber-like convenience. This deep connection
to people, the industry and what it does well has led
the company to enter six categories with over 90
products and be available both online and in over
700 retail stores across the U.S. Most recently, it
has created a new separate entity, Honest Beauty,
offering 83 skin-care and makeup products derived
from botanicals.
Let’s take a look at companies who are focused on understanding how they can provide value to current and
next-generation customers.

COMMON SENSE
6
WHO IS RELEVANT TODAY?
Recently, its humble acumen has led
the company to acquire Trunk Club.
Trunk Club was a startup dedicated
to making the shopping experience for
clothes personal and effortless – bringing individually
curated articles of clothing to people at no additional
cost to them. It began targeting men who didn’t
enjoy shopping but wanted to look good. In 2015 it
expanded to women. At its core Trunk Club is about
experience—experience dictated by people instead of
retail stores. It delivers on the quality of the clothes
it ships and goes beyond to give people access to
expert advice and service, and ultimately confidence.
Trunk Club is one of the latest ways Nordstrom
continues to re-evaluate the value it provides
people. With that focus, it’s been able to navigate
and overcome economic shifts and market changes
while still providing exceptional service, selection,
quality, and value. During its growth, it hasn’t lost its
focus. As a result people have been able to grow with
Nordstrom, continuing to be impressed along the
way.
Being relevant is not as easy as it sounds.
Just like 90% of startups, not every established company can keep up. Companies like Victoria’s Secret,
McDonald’s and General Mills have opportunities to recalibrate and re-assess their next steps based on
what people want, what they do exceptionally well and global trends. Defining what they are chasing first and
foremost, followed by using any combination of customer, business, employee, industry and influencer data will
help them get there.

COMMON SENSE
7
Assessing your organization’s relevance can be boiled down to answering two core questions:
If the answer is yes, you are in a good position. Specifically, does each and every one of your stakeholders
answer “yes” (beginning with your employees and spanning you partners, customers and investors)? It’s critical
they do.
Herein lies the invaluable emotional connection that will drive sales, partnerships and employee retention
alike. People inherently want to be a part of something or contribute to something that makes a difference
(which can have multiple definitions). It’s the reason brands can develop loyal followings, people choose to
volunteer and religion tends to be a collective vs. individual effort.
If a company, through its brands, products and services, can offer a sense of community and uniqueness, it is
more likely to keep and grow its employees, partners and customers than other businesses. This emotional cue
is what relevance ultimately requires.
THE ULTIMATE STRESS-TEST:
TWO FUNDAMENTAL QUESTIONS
1
2
Does my company (brand, products, and services) make people successful?
Does my company (brand, product, services) make people feel that they are a part of
something bigger than themselves?
Rather than spending 2016 chasing a perceived business ideal, focus on your customer, what you do well and
the zeitgeist. Opt for finding, honing and evolving your value to current and new customers. Organize to listen
and learn from your customers, employees and influencers. Draw insight from available key sources of data
and assimilate these insights into your decision-making.
Taking this approach can help you to be relevant as a business in 2016 and maintain this connection beyond. In
this unprecedented age of information, democratized through technology, we are left with little reason why not.
It’s true people have more power to influence purchasing decisions than ever before, but as a result companies
also have more ways to regularly gauge and assess their value to people. Companies who succeed in doing this
will be those that listen and converse genuinely. They also will be life-long learners who thrive from adapting
and evolving along the way.
If there is one thing relevance and business success are not, it’s static. Here’s to a bold 2016!
WHAT THIS MEANS FOR 2016

COMMON SENSE
8
WCG’s Corporate and Strategy Group is the organizational communications consulting
practice for WCG*, a leading independent, global strategic marketing, digital,
and corporate communications firm.
The mission of the WCG Corporate Strategy Group is to advise and assist organizations in effectively addressing
reputational risk, change management, innovation, product supremacy, and brand leadership.
The group offers distinctive expertise in culture transformation, strategy implementation, CEO transitions,
leadership positioning, internal branding, M&A post-merger integration, labor-management relations,
advocacy and issues management, internal communications improvement programming, investor relations,
training and development, and employee worldview research/measurement through a proprietary combination
of analytics, management outreach, employee engagement and strategic communications.
*WCG is a firm of the W2O Group
For more information, please contact Abigail Rethore:
arethore@wcgworld.com
646-503-4754

Common Sense for the C-Suite

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