Tag Archives: Michael Dell

Does Your Radio Station Have Schwerpunkt?

Many people have often wondered what the radio industry might have been like today, if it had had a Steve Jobs.

Steve Jobs had Schwerpunkt.

What is “Schwerpunkt”?

The term is attributed to Carl von Clausewitz and is now considered the heart of any sound plan.

“An operation without Schwerpunkt

is like a man without character.”

-Field Marshall Paul von Hindenburg

Schwerpunkt means “focus of effort.”

When Steve Jobs returned to Apple in 1997, he stunned his employees not by creating anything, but instead destroying many of the products Apple was making; like the Newton personal digital assistant and the many Macintosh clones.

Jobs quickly made it clear that Apple would no longer try to be all things to all people, and that the key to Apple’s future success would be winning where it mattered and focusing Apple’s resources on just a few meaningful products.

iPod

In December of 1996, under the leadership of then CEO Gil Amelio, Apple suffered its worst financial quarter in the company’s history. Michael Dell, founder of Dell Computers, when asked what he’d do to fix Apple if he were made the new CEO said, “I’d shut the company down and give the money back to shareholders.”

Steve Jobs knew that he couldn’t compete against Microsoft and Dell when he returned to Apple, so he focused the company’s resources in an area he saw as fragmented and that made products that as Jobs put it, “sucked.” He decided that Apple would produce a digital music player that would allow him to have a thousand songs in his pocket. The result was the iPod.

Focus On Your Strengths

The iPod took advantage of Apple’s strengths in simplicity of design and an ability to build easy-to-use interfaces. Jobs learned everything he needed to know about negotiating intellectual property rights from his ownership of Pixar. This knowledge was perfect for the creation of the iTunes store.

When you identify weakness in a market, and then apply a good strategy to exploit that weakness for your business success, that application is a key part of Schwerpunkt.

Steve Jobs was confident he knew where Apple’s strengths were, and how to apply them for the best opportunities that could leverage those strengths.

iPod = Apple’s Schwerpunkt

The iPod was an immediate game changing hit which changed the basis of competition in the music business.

While Dell was playing catchup, developing its Digital Jukebox, and Microsoft was creating its Zune, neither of which saw much success, Apple was preparing to launch the iPhone.

Schwerpunkt

When Steve Jobs returned to Apple in 1997, the company was near death, while Microsoft and Dell were giants. It was by employing Schwerpunkt that Apple went from worst to first. Today, Apple is the richest company in the world with a market cap of $2.294 Trillion.

While his competitors were still reacting to his latest innovation, Jobs was already hard at work on his next big thing.

Radio & Schwerpunkt

When I read the radio trades or sit in on a webinar, what strikes me most is how the radio industry’s leaders are talking about working to develop areas that are already owned by others. Areas, that don’t align with radio’s strengths.

When I worked for Clear Channel, I also remember management meetings that spoke of how we needed to focus, and then rolled out an agenda of 20 to 50 things we needed to focus on.

In 1952 Rosser Reeves, the ad man who developed the television ads for President Dwight Eisenhower was confronted with Ike’s multiple talking points. Reeves told the President that he needed to focus on just one thing, but relented to allow Ike to have three. Reeves understood the concept of Schwerpunkt, though he may never have heard of it.

Radio’s strength has always been about serving its community of license with live local personalities that provide companionship for the listener.

The very people the radio industry continues to eliminate.

When hurricane Ian bore down on Florida this past week, I’m sure I’m not alone in turning to The Weather Channel to see Jim Cantore and Stephanie Abrams tell us what was happening.

Jim Cantore joined The Weather Channel upon graduating from college in 1986 (36 years) and Stephanie Abrams has been with the network since 2003 (19 years). Cantore and Abrams along with the rest of the team of meteorological professionals have earned our respect and trust. Trust that has been earned over many years of excellent broadcasting.

Good luck to anyone who thinks they can beat them.

The Weather Channel has Schwerpunkt.

Until the radio industry truly focuses on its strengths, and leverages them for both its own financial benefit as well as that of their advertisers and listeners, its future will remain cloudy.

Radio = Schwerpunkt-less

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Is Radio Being Disrupted or Simply Lacking the Human Factor

slide ruleI was a physics major in college. The slide rule was a necessary piece of equipment when I was going to school. Hewlett-Packard then came along and replaced it with a line of scientific pocket calculators.

When I began my radio sales career, I adopted the DayTimer written system for keeping track of my schedule and appointments. Then Palm came along and I replaced it with their Palm Pilot Digital Assistant.

When I became a general manager, I wore a pager. That soon was replaced by a Motorola flip phone.

Then Research In Motion (RIM) came along with the Blackberry and suddenly my flip phone and Palm were replaced by a single device.

I loved the size of my Blackberry Pearl smartphone and it wasn’t until I realized that the iPhone4S was the same size as the Pearl and more versatile that I switched to my first iPhone. I also saw Blackberry phones were clinging to life and wanted to adopt an ecosystem that would be around as long as I would be.

Today, I’m fully immersed in the Apple ecosystem and could not imagine what would ever get me to leave it.

Disruptive Innovation

I thought for years that these disruptive changes were due to mechanical innovation. But was that the core reason? Could it be something else?

In 1943, Thomas J. Watson of IBM is credited with saying, “I think there is a world market for maybe five computers.” And Ken Olson of Digital Equipment Company (DEC) while acknowledging the growth of people using personal computers, said he couldn’t understand why.

The Human Factor

How important is the Human Factor in the future of a company, or even an industry?

October 6, 1997: Michael Dell makes an infamously bleak appraisal of Apple’s fortunes. Asked what he would do with Apple, the founder of Dell Inc. says he would “shut it down and give the money back to the shareholders.”

Where do you think Apple would be today if Michael Dell had been put in charge? What did Steve Jobs, who had just returned to lead Apple say to Dell’s assessment? “We’re coming after you buddy!”

Jobs gave Apple a vision, backed it up with management fortitude and people with the technical skills to make the Apple vision a reality. It was those human factors that carried Apple to become one of the most valuable companies in the world.

Apple’s market value (at the time I was writing this article) was $948M and Dell’s was $27M.

Radio’s Human Factor

Which brings me around to the industry I loved for over 50-years, RADIO. The aspect of radio that first captured my attention was the radio personality. These were the people who built the relationship with the listener.

Then there was the dedicated radio programmer who created the stationality, the promotions and like a good sports coach, kept the radio stars playing together as a winning team.

While it appears, too much of the radio industry is focused these days on mechanical things, blaming it for disruptive innovation, maybe the real culprit is radio’s loss of the “Human Factor.”

“Absolutely everything begins with imagination.”

-George Johns

Howard Stern was never really replaced when he left OTA radio for Satellite Radio. Howard Stern, like him or not, has a vivid imagination. For his listeners, he creates a style of radio that they have to hear.

My favorite part of the Stern movie, “Private Parts,” is dialog between the audience researcher and Stern’s WNBC program director Kevin Metheny, aka Pig Vomit.

RESEARCHER: The average radio listener listens for eighteen minutes. The average Howard Stern fan listens for – are you ready for this? – an hour and twenty minutes.

PIG VOMIT: How can that be?

RESEARCHER: Answer most commonly given? “I want to see what he’ll say next.”

PIG VOMIT: Okay, fine. But what about the people who hate Stern?

RESEARCHER: Good point. The average Stern hater listens for two and a half hours a day.

PIG VOMIT: But… if they hate him, why do they listen?

RESEARCHER: Most common answer? “I want to see what he’ll say next.”

Does anyone want to listen to your radio station to hear what comes next?

“Radio only needs to move @ the speed of life.”

-George Johns

 

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Filed under Education, Mentor, Radio, Sales