To me, it looks an awful lot like the crackdown procedures of the MPAA and the RIAA on the movie and music piracy scene. It does signal the perilous situation in which these organizations and their business models are. They are looking to make money from a changed world in a way that only worked in the old world. They’re trying to change the world instead of changing their business model.

Copying of content, piracy of audio and video, and music services on the web are not bad. It’s even a form of flattery. Apparently, it’s worth using and consuming. Attacking these practices and services is essentially also attacking the one they should be aiming for, consumption. They’re running their business into the ground while under the impression that they’re saving it.

Protecting the future by killing the now doesn’t work.

Social media has a funny magnifying effect. If your brand is strong, it will only be enhanced through social media. However, if your brand has a bad reputation, you’ll find that social media is capable of delivering more worms than you thought fit into the can.

Be critical and cautious when considering a social approach to your business. Social media is not the be-all end-all of your marketing.

Align your social media efforts with the strength of your brand.

Circuit City basically dominated the stock market—beating average performance by 22 times at its height—for a 15+ year period. However, one of the key traits of a “great” company is that it’s able to withstand setbacks, whether personnel-wise, economic or other. This hasn’t been the case with Circuit City as it closed its doors last week after filing for bankruptcy in late 2008. This obviously baffled me and I’ve tried to find answers to how this happened. In the end, it boiled down to losing the competitive advantage:

• Their branding model didn’t work anymore. The goal of Circuit City was to become the best at service, selection, savings and satisfaction. However, other market players had mastered one or multiple of these categories in a better way than Circuit City: Best Buy (service and selection), WalMart (savings) and Amazon.com (satisfaction). As a result, Circuit City failed to gain a competitive edge.
• Circuit City had a tradition of paying their employees well and training them to deliver the best possible service, but cost cutting procedures led to stripping sales commissions from sales staff and eventually to layoffs of these well-paid and knowledgeable employees. This also hurt their competitive advantage.
• The economic recession wasn’t a key driver but it does magnify the effects and was strong enough to push Circuit City over the edge.

In essence, Circuit City destroyed its business by destroying the underlying foundation on which it was built and failing to reinvent itself.

Opportunities will come and go, but the ones that you capitalize on should feel natural to you and the people you work with. One company executive told me about his bad experiences after the company bought themselves into certain markets only to find out that they had opened very expensive cans of worms. They forced the issue and are paying the price right now. Moreover, they’re stuck with a more difficult decision: continue and try to battle through all the complications that have now arisen—or—divest in the new activities and cut your losses? Neither is a desirable outcome and the experience will be an expensive lesson.

Don’t force the issue. Go naturally.

Long-term strategies—or strategies in general if you will—have always focused on achievements, objectives that needed to be reached by a certain point in the future. A more real-time focus on business would dictate objectives to be around a shorter time cycle and could be detrimental to long-term strategic planning.

However, I disagree. While the real-time stream does stress more real-time action, action must be focused on protecting the future. This does call for an adjusted approach to business. Achievements should focus more on shorter-term objectives but should contribute to a longer-term goal. Policies need to be created to deal with real-time interferences and processes need to be ironed out to improve responsiveness. The strategy should become more of a philosophy, a way of doing business with certain goals or ideal future situations as targets. Tactics and operations should become more agile and should focus more on short-term measurable results that can be continuously tweaked.

Prepare yourself to deal with the real-time stream but don’t lose sight of the future.

He also mentioned “protecting the future”. Every major business decision and business activity was made based on the protecting the future. Many companies capitalize on opportunities in the here and now, generate massive amounts of buzz for a certain (short) period of time, or are focused on quick wins. The question remains, however, whether these initiatives contribute to setting a company up for long-term success.

Using the “protect the future” mantra helps you analyze opportunities and make conscious decisions.

Are your initiatives focused on protecting the future?

Take the time to reflect on what should be rather than what could be. The current economic circumstances form the best stress-test for your organization and your skill set. Find out what’s working in your organization and what isn’t. Examine best cases and perform some “business process scrutineering”. Make sure you have your exit strategies and future plans in place.

Consider your plan B. Make it just like another plan A.

Where does the good old travel agency come in? Nowhere, really. Some may have their own websites where they provide a similar search service, but the fact is that any human involvement can be cut to zero.

Of course there will still be people who prefer to visit a travel agency. Some travel agencies will continue to exist, but they only do so because they differentiate themselves by offering more than being able to find the best deal for a customer. They offer knowledge and expertise in a special area, like adventure travel, or specialize in a particular niche/audience.

Differentiate. Improve your skills and knowledge, if only to prevent being replaced by a machine.

Products/services come to an end for a multitude of reasons. Most common ones include:

• Consumers don’t buy them anymore leading to losses
• Margins have been cut due to competition
• Companies divesting in a certain product/service
• Substitute products/services have entered the market

Whatever the reason for the end of a product’s lifecycle is, have you thought ahead? Do you have in mind what to do once that moment comes?

Some questions to bear in mind are when considering future options are:

• What would you want to do? Put motivation behind the direction you’d like to take.
• What would your customers want you to do? Think about your target audience, your value proposition and your business model.
• What can you do? Choose a direction that emphasizes your strengths and competences.

Think ahead. Stay ahead.

As the year draws to a close, think about your brand. Think about how robust or fragile it is and how much long-term potential it has.

Re-invent your brand, your value proposition and your strategy if necessary. Make your brand a Toyota HiLux.