Marc Jacobs’ Team:  Small Decisions Make for a Big Blow Up

​I have to comment on the decision making of the Marc Jacobs team for the New York Fashion Week runway show with faux dreadlock hairdos. This internet blow up is an example of business decisions made without knowledge and sensitivity to the social and cultural envirnment that can affect a major product launch. The New York Times article on Sunday pointed out how the big and little players in the Marc Jacob show were uninformed, insensitive and unprepared for the blowback. 
(Faux Locs, A Real Uproar. NYT 09/18/16)

Last Thursday, the Marc Jacobs models had their hairdos structured as faux dreadlocks out of multicolored yarn for his New York Fashion Week show. When the pictures hit the Internet it triggered a social media blow up about cultural appropriation. Comments by Black women highlighted the double standards for high-fashion Caucasian models wearing dreadlocks, versus Black women or anyone with non-traditional hair as not being a good fit to hire into companies. 

These are my comments from a business point of view on how social/cultural awareness and sensitivity are now essential elements of marketing research, communications, product development and sales promotion. I am struck by the lack of product marketing, planning and decision making at all levels of the hair debacle by Marc Jacobs, Guido Palau (the hair stylist), and Jena Counts (the hair-piece artisan). Even if you are “just” a team member or a task doer, you want to make sure you as the little guy in a chain of decision making have both local market information and a voice with the decision makers to achieve a desirable market and customer experience. 

Marc Jacobs’ initial response to the negative social media comments set off another blow back, but he finally apologized Tuesday afternoon. Mr. Jacobs did not anticipate nor test his dramatic hair styles on a diverse audience. He got a lot of publicity but the headlines were not about his clothes and designs. 

All business is local
The hair designer Guido Palau said he was inspired by a “mishmash of things” from punk rock to Japanese Harajuku styles. He forgot that all business is local. In a U.S. show, sensitivity and respect for the role of hair in the African American and all ethnic communities is essential. More than anyone on the runway show team, he should know how much time and money diverse women spend straightening, dying and styling hair to appear in public with “good hair.” Alicia Keys’ statement to style her own hair and not wear makeup is a powerful role model for me as a women of color to let my hair go where it wants to.

The very last paragraph in the article mentioned the artisan Jena Counts who constructed the hairpieces. She was quoted as saying, “It is so hurtful to me. It was never in my head that it would be brought up as an issue. I don’t understand why they would react that way.” 

She may feel hurt now, but hopefully she can turn it into a learning moment for herself, small business owners, contractors or team members who assume there is little risk by being the quiet dutiful task-doer on the team. As a part of a highly visible project, she can take responsibility for understanding trends in her industry, location and asking if the concept had been previewed with a diverse group. She could have even asked for a focus group with diverse women to develop styles they loved and felt were respectful of their social, cultural communities and values. 

This runway show could have been a great success, building trust with new customer segments in the lucrative New York and broader U.S. market. Testing for audience response from strangers on the street is one of the best tests before any consumer product launch. 

If you are a contractor or business owner of any size, prepare for high visibility opportunities. Define your guidelines for success for these big opportunities. Be sure to ask questions to bring to the surface issues and risks that must be addressed before you go public and hit the Internet. Be the leader who delivers the project or product results that generate trust and confidence with your ideal customers and public. 

Feel free to modify these guidelines to use as you build public visibility:

  • Be clear on your business values and how they help you and your team be successful
  • Clearly define the public reaction you want to generate from specific audiences
  • Surface risks or challenges that could result from going public and address the issues
  • Do the market research and anticipate possible internet reactions
  • Be actively involved in the decision-making process for products you contribute to in any way

Here are some questions for you:
What do you think about this controversy?
Do you have other ideas for how the Marc Jacobs team could have been successful? 
What are you doing to build the voice you want to be known for on the Internet?
How have you dealt with difficult internet conversation you may have experienced?

Webinars and webinars and workshops in October. 

More Great Conversations at Step Up to Growing Your Business 

 Theme for the Evening Became:  Shift from Overwhelmed to Focused Action

The highlight of the workshop last week to Step Up to Growing Your Business was seeing business owners really engaged in the breakout discussions to grow their businesses and be ready for the challenges small businesses face continually. Thank you to Marc Siegel of Townsquared for helping out and bringing the great pizza and salad.

Join in the discussion of the top three strategies for generating Good Revenue (which is predictable, profitable, and diversified) and comment on the notes from each breakout group.
Modernize your marketing and promotion efforts with great content and simple consistent social media: Lisa Cain of MarketingU encouraged everyone to keep it simple and doable. We all agreed content is becoming more important to get noticed, social media should get the content to your ideal customers.  How are you shaping the content you are sending all over the world when you post? Is your best content getting to your ideal customers or clients?

Review and update your business model:  Amy Barr of A2B Strategy led a discussion of the Business Model Canvas to review your current business and find opportunities to increase revenue and manage expenses. What are you doing?  Do you know how the Business Model Canvas could help? When did you last update your Business Plan or review your whole business model?

Modernize or develop products to create multiple revenue streams.  As I led this group the phrase, focus on your ideal customer came up as the starting point and ending point.  The Internet now makes it possible to enhance and develop products at more reasonable costs. But product development has more risks because success is determined by the customers’ very specific decisions to buy.  How can you deeply understand your new customer?  Are surveys and interviews enough? How can you as a local business owner build a unique and loyal customer base in a more diverse world?

This is when the discussion for the whole group turned to The Great Decision Framework. Our new Podcasts and workshop this fall will help owners use the framework to ask great questions, make decision and take focused action on business growth.

Shift From Overwhelmed To Focused Action:

Great Conversations at Step Up to Growing Your Business 

Stepping Up To Leading the Growth of Your Business on Tuesday was fun and energizing. The breakout groups were the high point where everyone shared suggestions and thoughts on the challenges small business face.  Thank you to for sponsoring the lunch. You are invited to join this smal lbusiness network.  But the one hour workshop was too short to get into deciding on a course of action.  We cover decisions that generate value in the two-hour workshop Step Up to Growing Your Business this Tuesday on August 23.

Here are the suggestions and ideas on the three BIG issues from the break out sessions:

Issue One: The complexity and rising cost of marketing without clear results

  • Give top priority to content for marketing since that is what makes you stand out
  • Focus marketing messages, promotion and social media on a consistent marketing theme
  • Keep the tools and steps to publish as simple as possible

Issue Two:  Hiring quality employees, managing turnover and rising wages

  • Hire in stages if you can before making the employee permanent.  Use probationary periods or internships before you make the candidate a permanent employee.
  • Have an on-boarding process so you have lots of opportunities to give feedback and determine the level of trust and confidence in the worker and the work.
  • For tech companies you may want to develop non-traditional recruiting and training processes. Develop a program to hire interns with diverse backgrounds from local colleges and train them for full time positions. The employees are more likely to be loyal because of the career support.  The positive contribution enhances the reputation of the company. The CraneWorks worked with a local tech services company using this hiring strategy and it helped manage turnover.

Issue Three:  How to Manage the Rising Costs of Commercial Rent?

  • The classic response to this issue is to purchase a commercial building. Owning a commercial building supports long-term business and financial strategies, such as retirement and securing financing for future growth.
  • When you negotiate a lease for commercial space build in the right to sublet space. Then you can sublet space to offset partial or the total cost of the lease payments.

In the two-hour workshop Step Up to Growing Your Business on Tuesday, August 23 from7 – 9 p.m. at NextSpace Berkeley use a framework to decide on the number one strategy to act on. 
 Our key topic will be how everything the company does supports revenue generation.

What is Steady Growth?

When I describe The CraneWorks as a steady-growth company people come back with the question, “You mean slow growth?” What I mean by steady growth is determined by the CEO and leadership team. We believe that owners/entrepreneurs have to own their goals to succeed. When owners focus on stategic goals to iimprove cash flow management or to consistently market and promote products and services revenue growth rates can range from10 – 100% or more. That isn’t slow growth. Steady Growth is achieved through strategic thinking and action.

We encourage setting a range of goals and objectives with high and low targets to aim for and learn from.  Items to set goals for are pretty standard and include the external context:

  1. Annual revenue growth rates and objectives based on the market opportunities, industry trends and economic conditions
  2. Acquiring  financing, resources and settig a pace to implement
  3. Evaluating results financial and operating as well as achieving goals which may be social, economic or sustainable impact focused

Steady Growth Works for the Independent Business Owner:

  1. The company reaches for a stretch goal and set targets.  The emphasis in on taking the action steps that achieve end results while sustaining the core operations of the business. You only get results when you complete your strategic growth projects. 
  2. The rate of growth can be as aggressive or conservative as the CEO and leadership team decide and want to manage.  The point is to own the goal and work toward being within the growth target range. A good rate of annual growth may be around 20%, but frequently ambitious owners  frequentlyly reach for 40-60% revenue growth per year. At least one company in The CraneWorks group programs or an advising relationship will break out and hit 100% in the first year after finishing our programs and sustain growth at high levels. 
  3. The leadership team gets used to regular reviews of efforts to grow and improve rather than just report success and failure. When the leadership team sets and owns the goals and targets they frequently exceed the highest target.  Annual financial statement reviews helped two companies we worked with in 2015 recognize they had significantly exceeded their goals for 20% revenue growth goals.  If the company realizes they did not hit the target then the annual review leads focuses on improvements and new ideas to achieve goals and targets before launching the next growth project.

I am always thrilled when I hear from former clients that they keep reaching for new goals, delivering new products or services, deciding to restructure if required and making successful exits confident their decisions are right for them. 

​Here is my sketch for this week.

Experience the Steady Growth Approach at our August Events

You are invited to attend our events and network with other businesses and professionals dedicated to small business growth please register below our August events.  Thank NextSpace Berkeley and for their sponsorship of these events:

​Check out the details of each event and join us to network and explore business growth in the Bay Area
Lunch and Learn, 12 – 1 p.m. August 16
Stepping Up To Leading the Growth of Your Business
Network with other businesses and get strategies to sustain growth in theBay Area.
Click here to reserve your place

Evening workshop, August 23, 7:00 -9:00 p.m. Refreshments  served.
Step Up to Growing Your Business
Take away a big picture of growth opportunities for increasing revenue and growing long-term value.
Click here to register

Thank you to our sponsors:
NextSpace sponsor the training room and sponsor for lunch and evening refreshments
Register below:
We invite you to checkout and join, by clicking here