New World/New Rules

I recently read an interview of Jeff Bezos, the CEO of Amazon.com. The focus of the article was on the Kindle, their ultra-cool wireless reader.

When the Kindle was launched, the breakthrough wasn't in the concept; the first e-readers were introduced over a decade ago. But they were the first to finally get it right, addressing everything from the light weight of the hardware, an easy to read screen and access to a wide-range of books.

But I think the real breakthrough was that it was Amazon that put the whole package together, and not Apple, Intel or even Research in Motion, all of which are in the business of manufacturing computer hardware. After all, Amazon is a retailer; they're supposed to sell other people's stuff, not make it. Yet they broke some rules and did it anyway.

I like Jeff's explanation for how this came about. Here's what he said:

"There's a tendency, I think, for executives to think that the right course of action is to stick to the knitting—stick with what you're good at. That may be a generally good rule, but the problem is the world changes out from under you if you're not constantly adding to your skill set."

Maybe Jeff should have said, "It used to be a good rule." We're all witnessing how quickly products and services are becoming obsolete. That suggests that companies need to assume they're going to have a short lifespan, or instead they need to become much more creative and much more aggressive about how they define themselves in the marketplace.

Amazon took a risk when they stepped out of their routine, but it has clearly paid off. The Kindle is now their #1 selling product. I can't wait to see what their next reinvention is going to be!

Jennifer

Even “Dear Abby” Knows the Score

I still like to read the print version of the newspaper, and when I'm paging by "Dear Abby" I'll usually take a quick look at the trials that other people are having. While the juicy stuff is often about a social or family dilemmas, businesses should take notice of a recent post.

"Bitter in the Northeast" wrote in to complain about her job situation. Apparently, she is a good performer, based on her reviews, but because of the economy she hasn't had a raise in two years. If things were bad across the board, she wouldn't mind too much, but she's observed that the company owner has recently bought a new luxury car and taken some nice vacations. Her question to Abby was, does she have a right to be upset and feel that she's being taken advantage of?

Here's what Abby said, in its entirety:

"If your employers are claiming poverty while indulging in conspicuous consumption, your feelings are understandable. And as soon as the job market improves, I'm sure you will be only a part of the stampede of fellow employees seeking another job. With your outstanding reviews it shouldn't be too difficult to find one. Bide your time."

As the economy starts to warm up, the smartest and most talented employees will be thinking the same way—how has my company treated its employees during these past difficult months? Is this the kind of place I want to continue to make as my "business home"? And if "Dear Abby" is even arguing to leave rather than negotiate an equitable solution, than you know the predicted "stampede" is starting to form on the horizon.
Jennifer