The Death of Silo Management

Coronavirus and the Death Of Silo Management

If you spend any time talking about or reading about working from home, you may have noticed the focus tends to be on managing in the new hybrid workplace. Companies are contemplating different workplace scenarios. The office as we knew it will most probably change. There is something else that has changed as well.  

Collaboration is now more than a kumbaya moment. Collaboration is no longer theoretical. You can see the criticality of collaboration in the wealth of collaborative digital tools now available to businesses of all sizes. Using these work tools, mitigates separation and maximizes integration. Many of these have zoomed by Zoom.

  • Microsoft’s Teams has leveraged its synergies with Office and its cloud-computing platform. Teams is pre-packaged in its Business Office suite.
  • Salesforce.com purchased the collaborative Slack business product for $27.7 billion. 
  • Google is promoting its newly organized suite of products as Google Workspace. Along with new products, Google’s advertising hypes its familiar options as a valuable collaborative tool. Google Business Email, Google Calendar, Google Drive, Google Docs and Google Meet are now dished up as a total package for “How teams of all sizes connect, create and collaborate.

When people work apart, the need for cross-functional sharing becomes more apparent. This intense focus on collaboration while working from home may finally be the death-knell for silo management and its evil twin silo mentality. Collaboration is collapsing these corporate killer constraints.

Silo management is the separation of functions where employees protect their area of responsibility from other employees. Silo management means each operational group creates its own insular management. This insularity means that information is not shared throughout the brand-business. 

Organizational silos inhibit the brand-business’ ability to deliver integrated customer-perceived brand value. Silos hamper brand-business growth and governance in these ways: 

  • Silos slow brand-business development. 
  • Silos impede enduring profitable growth of the brand-business. 
  • Silos are dangerous. 
  • Silos create segregation and selfishness.
  • Silos are harmful to brand-business health. 
  • Silos create all sorts of bad brand-business behaviors, such as hoarding information, stopping the spread of ideas, creating internal conflicts and reinforcing the status quo.
  • Silos reinforce the lack of accountability for brand-business results. It is always the other silo’s fault.

Any farmer will tell you that silos are for storing, not sharing. 

Brand-businesses suffer when an organization allows functional isolation rather than institutional integration, as follows:

  • When an organization protects management from risk. 
  • When an organization deflects accountability. 
  • When an organization inflates a single group or a person. 
  • When an organization is less conducive to creativity and collaboration. 
  • When the brand-business mindset is shareholder value supported by financial engineering.

There is really nothing more oppressive than the organizational protectionism of powerful silos.

Pandemic lock downs with work-from-home forced employees to share information. One pandemic outcome is the demonstrated wisdom of shared learning. Shared learning is valuable. There is a significant negative cost associated with information hoarding.

For example, one extremely silo-focused hospitality company discovered that resources were spent on over 100 global research studies on breakfast. Another 50 global research studies focused on fitness and gyms offerings. Each group believed its research was proprietary, not to be shared across geography and function. The purchasing department showed that millions of dollars along with hundreds of hours of time and energy were spent on gaining the same information. 

That kind of unproductive, inefficient brand-business behavior is no longer acceptable

In a Financial Times article on Microsoft, reporter Richard Waters wrote, “On a single day during the third quarter (2020), users of Teams spent 30 billion minutes – an average of more than four hours per person – doing things like participating in video conferences, working on shared documents and reviewing meetings. Given how long it normally takes new enterprise software to take hold, that makes Teams virtually an overnight success, and an important new front door to digital working life.” 

Mr. Waters interviewed Microsoft CEO Satya Nadella. Mr. Nadella believes that Teams is an essential propeller for collaboration. In describing his views on the future of the workplace, Mr. Nardella said, “I think there will be structural change.” This change will highlight the need for software tools provide flexibility “… while still building social capital (and) building knowledge inside the enterprise by bringing people together on important tasks.”

The Wall Street Journal reported that the intense need for collaboration knocked down the barricades between CIOs (Chief Information Officer), their CIO teams and the brand-business’s other functions. The executive vice president and chief information officer at Charles Schwab Corp., the investment firm, told The Wall Street Journal, “As technology teams become more integrated into the business and develop deeper business knowledge and expertise… it leads to technology being at the table much more than in the past.”

Collaboration does exactly what Charles Schwab CIO talks about: having all parties at the table. Or, as writer (One Flew Over the Cuckoo’s Nest, Sometimes A Great Notion) and counterculture figure, Ken Kesey said about the merry pranksters and their psychedelic school bus, Further, “You’re either on the bus or off the bus.”

Sharing across function and geography promotes organizational learning. Shared learning generates new ideas and insights. Shared learning reduces redundancy of resources. Sharing creates internal alignment, leading to enterprise collaboration.

The coronavirus is forcing brand-businesses to make needed changes to the way people work together. One of the most important changes is the death of silos resulting in a new brand-business chapter of collaboration.

The Streaming Wars

Relevant Differentiation Will Win The Streaming Wars

Streaming entertainment is a crowded, competitive category. Cabin fever and closed movie theaters helped exponentially grow the streaming entertainment business. It is about to undergo yet another alteration. Welcome to the new year of content cull.

To satisfy our growing need for in-home entertainment, Covid-19 opened the door to intense showbiz competition beyond what cable providers could offer. We collectively became part of the global Netflix nation.  Other media mavens saw opportunity.  With dozens of streaming options, New York Magazine pointed out some media heavy hitters are now serious challengers to Netflix. Disney, Apple, Amazon, HBO, CBS and NBC have created content-heavy streaming choices. 

Netflix still owns streaming entertainment. Most calculations put the Netflix global subscriber base at about 208 million. Amazon Prime is slightly behind this with a global subscriber base of 175 million. Reporting in The Wall Street Journal indicates that global streaming reached 1 billion subscribers over the past year. 

But, if we learned anything from the pandemic, it is how easily consumers adopt new behaviors and habits. After more than a year, we are exchanging screens for greener scenes, moving outdoors and away from home.  

With the lock-down veil lifted, many of us are now questioning whether we actually need to subscribe to so many streaming options. We are now examining which brands to keep and which brands to ditch. 

The great content cull is upon us. Portfolio paring is a reality. After all, just how many streaming subscriptions do we really need? Among all of the streaming possibilities, which brands are our favorites?

Brand favorability depends on this: which brand offers a relevant, differentiated trustworthy entertainment promise relative to its costs? Relevant means the brand meets my needs. Differentiated means the brand is unique relative to competition.  Trustworthy means the brand will deliver its promised experience relative to its costs. Costs are price, time and effort.

Winning the streaming wars will require streaming brands to articulate their trustworthy promise of their important and unique valuable brand experience. Without a specific brand promise, a streaming brand will become a nice-to-have but generic choice.

Currently, blockbuster movies along with archived film libraries and new original, made-for-streaming content are the preferred ways brands achieve relevant differentiation.  

For example, Disney+ has its newest films and its evergreen portfolio of classic animated feature films. HBO Max has the established HBO name, its reputation for quality creative and its portfolio of Warner Brothers cinematography, due to AT&T’s 2016 purchase of Time Warner, now WarnerMedia. Newcomer Paramount+ is banking on the recognition of its familiar mountain logo with its extensive, deep library of films, old and new. Formerly CBS All Access, along with its film archives, Paramount+ is home to CBS, nick, Comedy Central, MTV, BET and the Smithsonian Channel.

In the streaming service crowd, only discovery+ offers a desired, unique brand promise that reflects an entertainment-road-not-taken. Rather than tout a film-based library, discovery+, is betting that people want familiar, trustworthy comfort-viewing.  To stand out in the pack of streaming brands, discovery+ provides a streaming brand alternative.

Discovery+ believes its current day-to-day content is as original and compelling as it gets. Discovery+ has the advantage of its unique and sometimes weirdly fascinating programming covering cooking, home improvement, reality TV, travel and animals. Discovery+ has a portfolio including Discovery, HGTV, OWN, TLC, Food Network, HLN, Animal Planet, Science Channel, diy Network, History, A&E and Cooking Channel. Discovery+ is home to the wildly popular”90 Day Fiancé”, “Diners, Drive-Ins and Dives”, and “Fixer Upper”, for example.

In an interview with The New York Times, David Zaslav, CEO of Discovery, parent of discovery+ said, “Almost all of the players in the (streaming) business moved toward scripted series and scripted movies. They went to the big stars and the red carpet. The big shiny object. We’re not so shiny and we don’t have a lot of red carpet.”

The New York Times story highlights discovery+ as the sort of programming people can have on in the background while doing other things. Described as “ambient” or “passive” TV, discovery+ can be a soothing backdrop where you do not have to follow along.  

Mr. Zaslav added, “ When you wake up and put the Today Show on in the background or put on the Food Network, it’s for comfort. You don’t watch ‘The Undoing’ (the highly hyped psychological drama starring Nicole Kidman and Hugh Grant) while you’re cooking dinner. But you do put on Guy Fieri or ‘Super Soul Sunday’ or ‘Fixer Upper’ or ‘How it’s Made’ or ‘Mythbusters.’” These shows are what discovery+ calls “real life” (rather than reality) content.

Using a construct for defining a brand promise, here is how Discovery executives appear to be defining discovery+. This is how the discovery+ brand promise is relevantly differentiating itself from its competitors. 

First, what does discovery+ offer me, and why is that important to me?

  • Discovery+ has: Useful content, Content I know, I can listen without watching, I am able to do other things while listening, Content not requiring complete concentration
  • Discovery+ has: Content I love, Comforting content, Comfortably informative content, I feel safe, I feel at home, Content that is easy on my mind

Second, how does discovery+ reflect my values and what is its attractive brand personality?

  • Discovery + is meaningful for me because: I value entertainment that can make my life easier, I appreciate being comfortably entertained, I value information that can make my home more comfortable
  • Discovery+ attracts my viewership because it is: Down-to-earth, Friendly, Authentic, Interesting, Informative, Has my best interests in mind

How does discovery+ support this relevant differentiated brand promise? Discovery+ streams:

  • 55,000 episodes of favorite shows from my favorite channels
  • Content covering home, family, food, nature, adventure, true crime, relationships, science, technology, paranormal and more
  • Exclusive original programming
  • Greatest real-life entertainment and exclusive originals all in one place
  • Affordable $4.99 per month
  • Olympics and other sports
  • And, finally, how confident am I that discovery+ will deliver its promised experience for these costs (price, time and effort)? 

Discovery+ has a lot of high quality competition. But, these competitors will need to continue creating their own expensive proprietary content to survive. Many of these competitors will only be as good as their last blockbuster or original series, continuing to define themselves by these category’s mainstays. 

Having a specific, non-generic, relevant, differentiated brand promise is key for any brand-business success. Only Disney+, essentially an extension of the Disney brand promise, has a relevant differentiator: to create happiness based on its mission to make a safe, high quality, affordable, magical place appropriate for the whole family. But, Disney+ will need to figure out how to make this promise work through its streaming. Just offering the archives and the new blockbusters may not do the trick.

Discovery+ may be small, but it has something the larger streaming brands do not have: a clear and compelling, relevant, differentiated brand promise. As the media magnates gather in Sun Valley, besides focusing on mergers and acquisitions, it would be beneficial if they focused on just what my media brand stands for in the minds of customers. 

(As a coda, AT&T announced that it will merge its WarnerMedia portfolio with discovery+ to create a media behemoth larger than Netflix but with fewer subscribers. Although there are strategic reasons for this, the exceptional nature of discovery+ adds incredible strength to this soon to be formed streaming service.)

BRANDS BUILT FOR NOW AND BUILT TO LAST

In 1994, when Jim Collins and Jerry I. Porras wrote Built to Last, they were referring to Visionary Habits of Successful Companies. Their highly influential book focused on the results of a six-year research project into what makes enduringly great companies. Their stated goals were: “to identify underlying characteristics are common to highly visionary companies” and “to effectively communicate findings so they can influence management”.

Companies that endure are iconic; they are studied; they are analyzed; and they are held up as examples of best practices that other businesses should exemplify. The same is true for brands. GE, IBM, Kodak and Xerox are examples of brands that now realize longevity is not necessarily a prerequisite for future success.

We live in a time when replacing goods and services is par for the course. We seem to have no qualms about ditching an old iPhone for a new model, or downloading the latest app, or frequenting the newest restaurant. In fashion, we have fast fashion that by its very nature is meant to be disposable. In automotive, ownership is starting to decline in favor of renting or subscribing: “Why keep something around when I can have the newest model whenever I want?”

With the exception of some durable goods products such as large appliances, there seems to be a reluctance to buy goods and services that are built to last. We appear to prefer obsolescence to endurance. Some brands such as Patagonia have urged customers to keep wearing their old Patagonia clothes rather than buy new ones. But, even in luxury goods, where holding on to a satchel or pair of shoes as the value increases, there are websites where owners can sell these possessions to make a quick buck.

So, it is a surprise that in a past report from The Wall Street Journal’s “The Future of Everything”, we were told to hold on to possessions, some of which are so much better with age. We learned that owning these goods for the long term will enhance our future: we were asked to buy something that “is destined for an estate sale rather than a landfill.” Products identified as “keepers” were luggage, boots, watches and classic home goods. The “The Future of Everything” article reflected one of the major paradoxes of our age: the desire (and hence clash of) for replaceable and irreplaceable.

“The latest and the legacy” is a unique paradox reflecting the wish for innovation/novelty and the need for things that have stood the tests of time. Technology has accelerated the pace of new products and services. We are used to replacing phones, laptops and other digital, smart, mobile devices and connected appliances with new versions on a regular basis. We fear missing the immediate ownership of the latest. People around the world will wait on line, overnight, regardless of weather, just to buy the newest Apple device.

And, yet, at the same time, we seek the authenticity, heritage, customs and legacies of products and service steeped in tradition.  Etsy, the online craft forum, is a paean to crocheted medallion quilts, handmade dangling earrings, knitted Argyle socks, and all sorts of imaginative, high quality craftsmanship. Vintage clothing stores sell authentic outfits from our parents’ and grandparents’ decades. Millennials are buying vintage sound systems to play LPs (even though they are also streaming music from Spotify). The Future of Everything referred to these types of enduring products as “heirloom” just like the tomato seeds sold in those various seed catalogues: those cultivars from gardens of the past, not like those used in today’s industrial agriculture.

Photo by Milad B. Fakurian on Unsplash

Brands have an opportunity to capitalize on the conflicting needs of being in the “now” with living with the “then”.  In the liquor category, Jim Beam and Jack Daniels are establishing their heritage credibility for a modern group of drinkers. KFC is currently making a remarkable comeback by focusing on their traditional, iconic mealtime buckets of chicken.  The familiar, timeless Colonel, and his values are back, but in a timely, humorous, contemporary manner. There is something compelling about revisiting a relevant, repackaged icon right now. Levi’s invented blue jeans. It has an amazing heritage. On its website, the brand confirms its history and its modernity, by being both now and then. Their statement is that Levi’s® Made & Crafted® builds on the legacy of 140 years “by designing tomorrow’s classics using today’s best materials and construction techniques.”

Brands in and of themselves are all about the future. Brands promise a relevant, differentiated trustworthy experience: buy this brand and you will get this experience. More than ever, brands have the opportunity to address our needs for the both the latest and the legacy: brands that are built for now and built to last. In our time-crazed world of now, it is nice to know that there are brands we can hold onto for time to come.

Larry Light in Forbes CMO Network

Larry Light shares insights to help be a beacon of light for brands struggling in a ever changing world dominated by a global pandemic.

Read some of his latest pieces now by clicking on the titles below!

Retail’s New Approach To Saving Retail: Store-As-Showcase

Retailers see small-format stores as the future of retail. Target led the way with small-format stores. Amazon 4-Star stores sell items curated from customers’ ratings, reviews, and sales data. This retail future makes it easy to choose, easy to use, and provides ease of mind.

How Marketing Can Change American Minds About A Covid-19 Vaccine

Trust in government is at all-time low. Many people will decline to take the vaccine. Their minds are already decided. How can their minds be changed?

2021: The Year Of Living Actually And Artificially

Two conflicting trends are shaping the new normal. One trend is our desire for actual products that provide comfort, coziness, conviviality, and contentment. The other trend is our desire for products and services using artificial intelligence and/or virtual reality. 

Demography Is Destiny: The Marketing Challenges Of Pandemic Demography

Covid-19 is changing the demographics of our nation. Coronavirus has decreased the U.S. birth rate while increasing the U.S. death rate. Brands must address this new future of who will be the customers for products and services. 


Looking for a gift for your marketing peers?

Check out our collection of books by Larry Light and Joan Kiddon. They make a perfect unexpected gift for the marketing leader in your life.

See the collection here.


Cover Photo by Brian McGowan on Unsplash

Larry Light: Brand Insights on Pandemic Impacts & More

Take These Actions Now Or Lose Your New Customers Post-Pandemic

Packaged goods food companies are performing beyond expectations. Will this sales lift last into the future? For enduring profitable growth, brands must not only build their quantity of sales but the quality of their sales. Here are four actions to help the fortunate sales lift endure post-pandemic.

Personalization Will Change Your Car Dealership Experience Forever

Hyper-personalizing the car purchase experience will be a path to auto dealer success. Personalization is about making the customer feel special. Hyper-personalization is focusing on an audience of one for each and every customer, each and every day.

Harley-Davidson: Adore Your Core

A turnaround strategy is different from a growth strategy. When a brand is in trouble, the priority is to stop the hemorrhaging of the customer base. CEO, Jochen Zeitz is making a radical strategic shift to put Harley-Davidson back on the road to enduring profitable growth.

Coronavirus Spurs Brand Innovation

As a result of the Covid crisis, there are a lot of innovative ideas being tested in the restaurant industry to keep businesses alive. For example, many restaurant brands now provide meal boxes that offer more than just meals – they are cooking lessons.

Guitar, Pet, Bicycle: Our Need For Therapeutic Experiences

Home-based therapy experiences that help us feel better are the new normal. Loving a pet overcomes loneliness, which has been exacerbated by being stuck at home, away from friends and sometimes away from family. Financial Times calls this feeling “lockdown loneliness.”

Environmental Decency Makes Money

Sustainable leadership and business practices influence customers’ brand decisions. In today’s environment, data show that environmental decency “significantly impacts” brand preference and purchase.

The Coronavirus Is Forcing Brands To Change

Arcature CEO Larry Light has recognized some serious implications resulting from the global pandemic and its impact on consumers, from how they work, eat, live and think. Brands, some of which are too big to react effectively, are struggling to keep up with these societal changes.

Read some of Larry’s latest pieces in Forbes on the epic impact Covid19 is having on the marketing world:

The New Age Of I: Isolation And Inclusivity

Read Now

The Great Brand Reset: Coronavirus Leads To Fewer Brand Choices

Read Now

The Four Rules Of FACE: The Future For Hotels

Read Now

Delivery, Drive-thru And Distance: Welcome To The New Disconnect

Read Now

Old Is New, Denied Distinctiveness & More: The Latest from Larry Light’s Forbes.com Column

Larry Light sheds light on interesting marketing and branding news in his Forbes column on a weekly basis. Below is a roundup of some of his latest insights. Read them now!

https://www.forbes.com/sites/larrylight/2020/08/31/old-is-new-erewhon-the-whole-earth-catalog-loop-and-blueland/#1a13769571e9″ target=”_blank”>Old Is New: Erewhon, The Whole Earth Catalog, Loop And Blueland

In 1966, a year before the Summer of Love and two years before the original Woodstock, two gurus of the macrobiotic lifestyle, followers of the great George Ohsawa, opened a health food store called Erewhon. Erewhon is meant the title to be understood as the word “nowhere” backward even though the letters “h” and “w” are transposed. It came from the Samuel Butler book about a utopia. One of the fictional Erewhon’s tenets was that everyone was responsible for their own health and wellbeing.

Read more.

Land Rover And The Case Of Defender’s Denied Distinctiveness

In January of 2016, after 67 years, Jaguar Land Rover (JLR), owned by Indian company Tata, ended production of the iconic and beloved Land Rover Defender four-wheel drive vehicle. The first Defender, aka Land Rover Series, began sales in 1949 post-war Britain. The intended use was for agricultural purposes. The design was similar to the WWII Willy’s Jeep (manufactured by Willys-Overland Motors). Over the course of its 67-year history, Land Rover Series and Defender vehicles reportedly sold just over two million vehicles. As a point of interest, at its 1949 debut, the Land Rover Series was the first four-wheel drive, mass-produced civilian car with doors.

Read more.

Home Depot, Alexa And The Paradox Of Do-It-Yourself

In a world of meal-kits, parking assist vehicles, wearable heart monitors, voice-recognition devices, connected homes, networked transportation services, farmers’ markets, delivery of practically everything, Bluetooth, and Task Rabbit employees who assemble your IKEA purchases, what does “do-it-yourself” mean?

Read more.

Nextdoor, Brands And The Need For Neighborhood

Neighborhood is more than a geographic descriptor. Neighborhood is a mindset… an amalgam of attitudes and behaviors. Whether it is Mr. Rogers’ Neighborhood, or the Cheers bar neighborhood is a powerful force. Financial Times once described a New York City, Upper Westside neighborhood toy store that had lasted beyond the demise of KB toys, FAO Schwartz, and Toys R’ Us. The store lasted because their neighbors owned the store and their neighbors worked in the store.

Read more.

SpaceX, The Pursuit Of Quality And The Law Of The Diagonal

Elon Musk’s SpaceX company was founded in 2002 to revolutionize space transportation, with the ultimate goal of “making humanity multi-planetary.” SpaceX designs, manufactures, and launches the world’s most advanced rockets and spacecraft.

Read more.

Marketing Industry Insights From Larry Light

We’ve rounded up some of Larry Light’s recent contributions to his Forbes column. Read a short blurb below and continue on the the articles to read more.

Ford CEO Retires: Unable To Articulate A Clear And Consistent Vision

It just took three years. Ford’s CEO Jim Hackett is retiring. In May 2017, Ford hired Jim Hackett to be CEO. Mr. Hackett had been CEO of Steelcase, the office furniture company. While at Steelcase, Mr. Hackett joined Ford’s Board of Directors. Mr. Hackett oversaw Ford’s Smart Mobility unit.

Read more.

Levi Strauss And Its Good-Better-Best Strategy

Levi Strauss, the 167-year-old blue jeans company, is fast-tracking its brand-business strategy to address our changing retail habits. The venerable brand has a great deal of incentive to do so, as many retail establishments are struggling or are facing Chapter 11 bankruptcy. Levi Strauss has several plans that focus on how we will be shopping from now on into the future. 

Read more.

Coca-Cola’s Brand-Business Rationalization

An unfortunate business outcome of coronavirus is the disappearance of some of our favorite big brands due to bankruptcy. Another outcome is the deliberate, disciplined disappearing of small or local/regional brands or single country brands.

Read more.

Keep Nespresso’s Vision Alive

There is a very interesting story from The Guardian about Nespresso, Nestlé’s espresso machine with its colorful, elegant foil coffee capsules. The detailed article tracks Nespresso’s history from its innovative origin to its current situation that is described as “trundling on” without the sophisticated swagger of its early days.

Read more.

Larry Light Dials In On Domino’s Success in 2020

In Larry’s latest piece in Forbes, Domino’s Six ‘Can-Do’ Actions Lead To Increased Sales, he lays out the 6 critical actions to Domino’s 2020 success.

Read his latest thoughts now, here.

Larry Light’s Forbes.com Column Roundup

Larry Light’s latest pieces in Forbes have collectively been read by over 54,780 readers. They cover an array of marketing topics including the impacts of Covid-19, Ease of Choice, and more.

See his latest headlines below.

Macy’s And The 100th Anniversary Of The 19th Amendment

At this 100-year anniversary for women’s right to vote, we should be respecting brands that stood up for women, especially working women Macy’s is one of those brands.

Six Rules To Plan Now For The Post-Coronavirus World

When the economy starts up post-coronavirus, many brands will need to be reenergized. How to plan now for post-coronavirus revitalization?

What’s Next For The Whole Foods Market Brand?

Amazon is focused on building Whole Foods Market into a trusted source for organic, healthful, eco-conscious, ethically-sourced offerings with a reputation for quality, leadership, and trust. The singular desire is to build loyalty to Whole Foods Market rather than sharing it with the “365” brand.

In This Complicated Uncertain World Ease Of Choice Wins

Right now, why add more uncertainty to our lives by selecting an unknown or new brand? This is not a time for new brands. It is a good time to build on the strength of brand familiarity and trust.

After The Quarantines, We May All Sell And Buy Used Cars The Carvana Way

Carvana is turning the used car business on its head and in doing so has the potential to utterly change the way car dealers do business. As with Uber, Tesla, Airbnb, Amazon that forced established brands to change, Carvana is causing a sea change in one of the most ubiquitous industries in the US.