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-- now Obama -- struggling to get off the ground but some companies are struggling to turn it around and can these companies be safe with more on this -- got Greg Rayburn.
He is still the CEO -- as friends he's been a work out artists and great things -- being with us tonight that you went -- -- after a huge financial scandal.
He went -- -- off track betting when I was in trouble and you shut that down.
You've now managed to recover almost all of the billion dollars in secured.
-- that that hostess went out of business.
Because that that union problem right so.
Given all your experience who want tap your advice on just.
Signs of future problems for companies as we got a couple charts for the producers brought up let's.
Let's start with the first one the edifice complex tell us how that's a sign of a problem and a company well.
You know I mean it not every company that builds a brand new Taj Mahal headquarters goes bankrupt.
But a higher percentage of those that do end up in trouble and you know what I've seen in my experiences especially when you combine them with -- isolating the senior management team away from the either the operations and the rest of the business.
It starts to affect culture.
It also sort of as a reflection in terms of what that companies you know competitive ability is going to become right and when you're trying to do a turnaround it's all about behavior and it's all about culture so.
That's you know the edifice complex as one that I think you have to pay attention to him.
All right now seem to remember back in the day -- could -- world WorldCom did some big headquarters thing -- it back in the nineties.
And I think apple itself has just the Fed putting the finishing touches on some gorgeous new headquarters -- -- it I think they are being apple.
Which -- had problems of its own of course fall from five -- seven dollars on a 400 -- -- look now might be on the on the comeback and -- let's talk about another one which -- bet the ranch strategies.
We've seen a number of examples recently.
Failed bet the ranch strategies almost every -- -- -- strategy is going to -- give us a couple specifics because JC -- Is a classic example.
I think and Blackberry to a certain extent is probably an example of that if you look at JC penny though.
To think about the analogy this way.
A decade or so ago Cadillac realized it needed to attract a younger audience because its customers were aging you know my -- -- a Cadillac and you know he like the big cadillacs and that's what we want to drive.
You know that if they had done what JC Penney did.
They would have ten years ago or so just say we're not making that large car anymore right to -- our own customers we're gonna watch James got to come out we're gonna make sporting new cars and attract new audience well yeah.
If you're gonna go down that path you need to be prepared to hemorrhage a lot of cash.
And it's likely not gonna work so when you're when you're dealing with the transition.
Tight turnaround plan you've got to build a bridge you got to build some kind of bridge between.
Your existing customers and the customer -- gotta keep that holds this is gone possessive paying your bills while you're trying to get over to that took to the newer stuff absolutely okay we got a charter on Blackberry snapshot.
You've got to considering a partner sale.
Struggling retail sales.
What do you think of the Blackberry situation it's -- it's like it's like watching sort of a slow moving train wreck and you can sort of see it coming from from a long way off -- and I think when.
When and I'm not picking on any individuals it's just that.
You know I was a die hard Blackberry user and I'm and I'm very late about a doctor of technology to begin -- a hum.
But you know maybe they'll let perfect get in the way of a good solution -- they continued to delay the Blackberry ten continue to delay the launch.
You know all I needed was a Blackberry that could get on the Internet.
You know I would think three years ago they could have probably done one.
Yeah and if they had -- probably still be using my Blackberry so.
You you know you you you push off those launches you wanted to be just right well frankly by the time it got launched it was too late you know you're what you're you're betting the ranch in your betting your marketing dollars.
On a launch that's likely gonna end up being in the 45 -- carrier.
Right it's interesting how -- what used to be a company's strength especially in -- can suddenly turn on you it didn't turn out to be your weakness.
Blackberry because -- had its own proprietary network.
Kind of separated from the Internet -- more secure corporate I T managers love that and that was a string for a long time but then when along came Apple iPhone.
With instant access to the Internet suddenly that very same proprietary network actually start way in the company down the -- and they they had a stranglehold I think on the on the enterprise market that was a strength.
Customers like myself.
Who who valued that yeah really only needed the tool to get to the Internet I don't I don't need all the other bells and whistles on a telephone.
You know -- exactly because -- getting old but how -- they had a big third item and future problems for companies it's companies that can't say no what do you mean by that.
You see a lot of businesses that that start branching out into areas where they really have no right to the space so they're branching into products they're just trying to drive sales of a lot of times a public companies are trying to drive the top line.
We can get into trouble though is that if if you do a turnaround you need to find out if there's a competitive advantage they hadn't in you try to leverage the turnaround off of that competitive advantage.
A brand can be a very strong competitive advantage to utilize the problem is when companies.
Forget how to say no they dilute their own brands so you have you end -- with unprofitable customers you end up with a brand dilution that your forcing it on yourself.
-- as opposed to.
Being able to say no you know I'm not gonna I'm gonna I'm gonna go I'm gonna stay within what I know how to do laden brags that I would give you mentioned apple earlier the example I would give you -- Think about all the products that they have chosen not to bring to market.
That's probably where their value as we will never see it right right right but as an organization I guarantee you they spend a lot of time saying no.
Right when they conditions that this is one thing that Steve Jobs deal when he came back and is he said you have way too many SK use -- to -- -- we got.
Cut back to what we do best I guess absolutely yeah and I can see where acquisitions by companies or another wave just coming glom on on ground on on the some extra contraption and Bolton onto your company right -- actually doesn't quite fit into the central core strategy.
All right let's have a nice slow review appreciate you being here you found your next to work out your next step parachute -- yet I'm.
Working on something that I kept talking about OK we'll come back and tell it to us when you get it all right okay Fred -- -- of it was tonight are they okay.
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