Love this article from Inc.com “It’s not the Economy, Stupid” about why Circuit City truly went out of business. This is the second time I’ve heard a similar story about Circuit City and its poor customer service. What I love about the article is that they offer a contrasting business…B&H, and their outstanding customer service model. So outstanding that they’re able to close up shop each weekend – even their online business – for religious observances. What an incredible example of a business that knows what it’s truly about.
Steve Linder uses the following metaphor to describe this phenomenon: in an up economic time, businesses are like little kids playing in a pool, floating around on their little water wings. They throw all sorts of garbage in the pool…bottles leaving shards of sharp glass, rocks, garbage…but don’t have to pay attention to it, since it’s way down at the bottom of the pool, not impacting them. Then, all of a sudden, when the water level drops suddenly (aka the economy tanking), now it’s not nearly as fun as they cut themselves on all the garbage at the bottom and wonder why. This economic downturn reveals weaknesses in businesses that have likely been there all along. The economic conditions just shines a spotlight on them.
I have a friend that works in Business Development. She shared with me recently that she’s enjoying her job now more than ever because she’s been able to come up with creative, out-of-the box ways to drum up additional revenue for the company. Since all eyes are on revenue, her executive team is willing to hear any and all ideas to become more profitable. Businesses that adopt this “open to new ideas” perspective will find themselves even better positioned for long-term success provided they dig in and clean up the garbage at the bottom of the pool.
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