But what is the purpose of our interactions between businesses? Is it control? Power?

Walmart – The Evil Empire

What company better defines the abuse of power better than Walmart? With a rich history of marketplace bullying, Walmart has routinely used it’s market authority to drive prices well past the breaking point for their vendors and suppliers. In order to do business with Walmart, vendors that sell basic products that don’t change are forced to cut their prices EVERY YEAR. This has resulted in an unbalanced (and self-corrupting) business model for the vendors, reduction of salaries including unethical compensation for some of the lowest paid people in the world, and record profits for Walmart.

So it seems that it’s possible for Walmart to enact almost universal control over both it’s vendors and consumers. Vendors are hoping to make money by supplying the worlds largest company. Consumers are looking for the best price they can find. It seems that Walmart is an unstoppable force. But this conclusion demands that we admit that one company can enact full control over another company. It demands that the current U.S. economic model of capitalism supports this unique power imbalance, and fortunately it doesn’t.

The continual evolution of the company mix in the U.S. is a testament to the desire for a balanced market structure. The dominance of a single company is constantly under pressure from others vying for the same market space. This constant shift is the result of a consumer base that refuses to stand still long enough for a single company to fully consolidate the market. This is good news for consumers, and bad news for corporate greed.

The Great Lie

But the underlying problem with the struggle to attain power is the tenant in which it’s based on. The lie is simple: “I can control you”. This belief is at the center of many of the unethical practices that are so common among businesses. Companies believe that if they can control their vendors, their customers, and their competitors, they can control their own destiny. What they are missing is that it is fundamentally impossible to control another person. History shows that people will fight, violently if necessary, against being controlled. Control is not the goal, relationship is.

Relationship is the single most important business principle in the world, and one way that relationship can falter is when one party tries to control the other. This struggle never ends well, and while short-term success can sometimes be achieved, the long-term goal of creating brand equity suffers as a result.

The Truth

So if we can agree that relationship is the primary driver of successful business, then it must also be a primary driver for profit as well. As all business exists to produce a profit, then this must be the case. Let’s examine.

So if profit is revenue – expenses, then how is it possible to say that relationship is the primary driver of business? In order to further this discussion, let’s assume that all of the measurable attributes of a business can be placed into one of the following three categories:

• Internal – employees, executives, owners
• External – suppliers, partners, competitors, government regulation
• Customers – current customers, past customers that have left and went to a competitor, future customers that you hope to get

The relationship between a business and the people who make it run is somewhat easy to understand. In the example of Jim Collins of Good to Great, the right people must be in place to “drive the bus”. Employees and owners alike must be fairly compensated, empowered, and given clear direction. The goal of these internal relationships it to create internal harmony, not to exact control. The best companies in the world understand this, and use it to their advantage. Companies like Apple, Pixar, Google, and Cisco (just to name a few) attract the best talent by creating a relationship in which both the company and the employee benefit.

The external relationships with suppliers, partners, and even our competition is also vital to a successful business. While it is easy to see that a good relationship with a partner would be beneficial, it is important to understand that in order for a relationship to exist, it must benefit both parties. So this means that we must allow for our partners and suppliers to have reasonable profit margins as they work with us. As a business owner I completely understand the need to control costs, but in order to maintain good relationships our suppliers and partners must see the value in working with us. The value of our relationship must be greater than the sum of its parts.

As it relates to customers, the value of relationship simply can’t be ignored. Unfortunately the business world has not been the primary driver in the need for a better understanding of our customer relationships. As marketing messages have continued to flood our consciences, the word brand has been created to describe this unique relationship between businesses and their customers.

Branding is simply defined as “What my customers think of me”. Using Coke as an example (and knowing that they won’t mind as I’m a Diet Coke drinker); “What do I say about Coke”. I would answer that by saying “I love it”. Coke has created a relationship with me over the years, and created a situation where if I go to a restaurant that only serves Pepsi, I’ll drink water. Now that’s a monogamous relationship indeed.

In fact, the new truth to marketing is more like a marriage than ever. I can see it now, “…do you Chad, take this Diet Coke as your soft drink of choice. To enjoy when you are thirsty. In sickness and in health…“. Funny, but true. We call it marriage, Coke calls it brand loyalty. And as far as it’s role to play in corporate profits, it probably goes without saying that happy loyal customers leads to greater revenue for Coke.

Control != Relationship

So this entry all started with the realization that it is a lie to believe that it’s possible to control another person while having a good relationship. This is true in marriage, in business, as a parent, and with friendships. When I realized that this means that I should never set out to try and “control” a client relationship, I immediately started trying to get my head around what that means to FORGE, and me personally. Thanks for listening.

A Quick Disclaimer
I hope This post isn’t too much of a mess. I’ve been thinking about this specific issue of client relationships for a while now, and this entry is simply a way for me to put some of my thoughts down. I’m well aware that there are numerous books and teachings out there on running a business, and it was never my intent to suggest that I have it figured out. As Managing Director and a Partner at FORGE, in Dayton, OH, I am figuring out many of these things as I go. Thoughts and feedback below. -Chad

The premise for this movie was that “God is a lie”. While I don’t have a problem with anyone actually believing this, there was a line that Ricky Gervais crossed with the handling of this material.

“If you believe in God, You’re an idiot”

This statement is presented mainly by the reaction that people have to this lie. Ricky Gervais invents this lie in order to comfort someone who is dying. But when he tells the world of “the Man in the sky”, it is their reaction that offends me. The movie suggests that this belief in God creates a world where people act like idiots. There belief does not guide their lives in any way, but simply gives them someone to blame when things don’t go right. In short, it suggests that Christians are morons.

I see this belief echoed in the current issues; evolution, abortion, politics, and the death penalty, among others. Rather than simply debate our differences and look for common ground, we apply human value to others by how much our beliefs match up. By having faith, Christians are portrayed as lacking reason.

Haven’t we learned anything by our past? Valuation based on belief is subtle and dangerous. It leads us to look at people through a filter that can change. As we mature, and experience life, our beliefs change.  The goal of simply converting someone to our belief systems DOES NOT match the evangelistic goals of Christianity.

Christians are called to do 2 basic activities; Love God and love each other. These goals, if followed, promise a life filled with happiness and contentment. They do not suggest that we should only love other Christians. It is a religion of tolerance, however poorly practiced. It gives me a reason to look beyond someone’s belief and try to know the real person. It is this love that Jesus spoke about in the bible. He was always looking through people, much to the dismay of those around Him, and seeing the real person. In short; Jesus didn’t look at peoples beliefs, He looked at people.

Our beliefs are a result of living in this world. The spiritual draw on our lives is to help us to know who we really are, despite our surroundings. This sometimes painful pull on our lives is because of God’s ultimate love for us.

The difference between “I don’t agree with you” and “You are less of a person because of your beliefs” is huge. The former is our right, but the latter is scary.

History is rife with example of intolerance; The crusades and slavery are just two examples. It’s easy to find, yet this same intolerance is now being incubated against the Church. If allowed to continue, Christians are in for a rough ride. We will be persecuted in many of the ways that we have persecuted others throughout the years. 

The Invention of Lying, by it’s mocking portrayal of Christians as morons, is telling the world that the Christianity is a lie, and that absolute truth lies in each of us by the choices that we make. While I understand this belief, I disagree that humans have the ability to make consistently good choices. It is my relationship with God that drives me towards things like tolerance, love, acceptance and honesty.

This movie would have us believe that belief in a higher being is a sort of de-evolution of our society, created to provide comfort to those who lack the ability to manage themselves. The film speaks out of both sides of it’s mouth, and is simply one of the worst films that I’ve ever seen. I was both surprised and insulted at the blatant attack on my beliefs.

Can you imagine a film that had the opposite agenda? Here’s the premise; Anyone who is not a Christian is a moron. Wow! Now that movie would stir up some negative headlines, and rightly so.

I don’t believe that Ricky Gervais is an idiot, I just think he’s wrong. And that’s the difference.

At some point, I think we all have to question why we do what we do.  As a person, I am annoyingly introspective and yet in all of my self induced doubt and fear I sometimes forget that work is not separate from life but simply part of it.  I cannot separate myself into work me and home me, even though I try.  I am at my best as a person, and by extension a professional, when I am passionate about the thing that I’m doing, and this passion can’t be left at the office door.

It’s easy to be passionate when everything aligns perfectly.  Perfect client, perfect budget, perfect project.  But, seriously, when how often does this happen. Something else must drive us to get up in the morning besides circumstance.

I sometimes think about what drives me on. Why do I put up with the stress, long hours, ungrateful clients and disappointments that come with managing a creative agency? Is it the money? The quick answer there is no (believe me). The long answer is more complex.

Does it Matter?

I’m driven by a desire to be relevant. In a world that is filled a lack of authenticity, I burn with a desire to be genuine. The business world can be as disingenuous as a fairy tale sometimes, and it’s painful to see. But in all of the posturing and manipulation that occurs in the world of Marketing and Advertising, it’s seldom that we can have an actual impact. End the end, companies are too afraid of standing out to actually stand out. The problem with this thinking is that the company in question is most likely ACTUALLY DIFFERENT, yet too afraid to say so. This fear leads to failed marketing, and a distrust of the very consumer that they need to reach.

But people are desperate for the real thing. They want to care. I want to care. The greatest advertising is that which speaks to people on a personal level. It’s a marketing piece that drips of passion. The authentic can’t be faked, but the fake also can’t be made authentic. Having been inundated with marketing messages our entire lives, we can sniff out a phony from distance.

This desire for authenticity helps explain society’s love of sports. In it’s simplest form, sports can’t be faked. The process of achieving collegiate or professional success requires a rare dedication, and people are able to connect with athletes in a unique way. They buy their endorsed products, they chant their name, they tune in on the television when they play; all in the name of passion.

People are desperate to find help navigating the blitzkrieg of marketing messages they receive every day. An estimated 10,000 messages daily find people (ZAG, 2007), and the human brain is working overtime to filter for relevance. But if we can only help people find a reason to care, then we’ve achieved something.

Yep, it Matters

At FORGE, I dream of working with clients that will allow us to care about what they do. Our 2010 FORGE Your Dot Org (FYDO) winner is a great example of passion. The Other Place has a mission to end homelessness in Dayton, OH, and we are working with them to help clarify and enhance their branding and marketing message. As we work to serve the Dayton community, our FYDO program allows us to give our services away to one non-profit per year, but my hope is that we are given a chance to share this vision with our paying clients as well.

As I do my part to make FORGE vibrant company, I hope we have a chance to engage in projects with a strong cultural relevance. People are desperate to find products and services that connect with them on a higher level than just a commodity, and consumers (myself included) are just waiting for companies that we can care about.

This truth lies at the heart of branding, and it’s why I do what I do.

In one way, I guess I’m glad that every crap-tastic design firm in the world follows the lead of the innovative firms.  At some point in time, a company actually created the world’s first swoopy logo.  I bet it was radical at the time.  Perhaps at that time, every logo was Times New Roman, and the swoop was the wave of the future.  Maybe I should just realize that’s just the way it is.  Sometimes I think that I should just not watch tv, read magazines, or visit any stores.  All it does is serve to depress me.  Especially when I see how much money goes into advertising and promoting a brand that is basically a piece of clipart.

So if your a company and you’re looking for a new logo, brandmark, whatever.  Use a good company.  Look at their work BEFORE you call them and make sure that they aren’t going to just put a swoop next to your company name and call it a day.  If you’re going to do that, just pay $99 and don’t bother calling a good branding firm.

Image taken without permission by a company that does the crap I’m talking about

Ok, I’m done.  I don’t really feel better.  Vent Fail!

What makes us feel safe? Is it complacency? Ignorance? The truth is that our safety comes not from the past, as the past has little impact on the future. Preparation, education, planning; these things can all help the future be a bit more predictable, but just ask the many people affected by wars, flash floods, freak snow storms and a surprisingly bad economy if their plans were enough to secure their future. So are we ever safe?

For too many years I felt that my actions only effected me and my immediate friends and family. If I did well at work, I could keep my job.  If I was a good husband, I could keep my wife. My vision was limited to what was immediately around me.

The safety and security that I feel comes, not from a historical perspective, but from the faith that the future holds something great. Like the Israelites, I sometimes miss the blissful ignorance that can only come when you truly don’t think that you matter, but I’m also finding that the freedom that comes from dreaming is addictive. As I have become older, and a bit wiser, I am keenly aware that my sphere of influence continues to expand. I guess my only choice is to either run back to slavery or trust that God will lead me someplace exciting.

So I would encourage you to resist the temptation to run back to safety.  Embrace the feeling of the unknown. Trust that God has set you on a path that will scare you, force you to change, and ultimately make you happy.  Free indeed!

A False Truth

My original understanding was that the price that a creative firm charged was based upon an objective value placed upon the firm. This value was believed to be computed from the firm’s quality, reputation, availability, and timeliness, and other factors. I find that this is a common belief, as I hear it from both my partners and current and potential clients. It is believed that the higher quality of work will allow the firm to charge higher prices, as the demand will go up. The general thinking is that the best firms in the industry charge more because they are the best, and therefore demand a higher price.

The assumed link between quality of product and price is not as clear as you may think. One understanding is that price is the main way in which design firms control the supply and demand of the goods and services offered. A higher price would reduce demand, and a lower price would raise demand. It would then be the role of the firm to set a price that most accurately conveyed the quality of the service in question, as well as attract the type of clients that would pay this price.

While this may seem logical, it’s not entirely correct. In the design industry, as any industry, the role of price is to affect behavior, not to, as previously stated, control demand. This may seem like a crazy game of who’s on first, but in reality, it’s a different way of thinking.

A Slight Variation

Prices not only affect the behavior of consumers, but also of the firm itself. As a creative firm can’t possibly know what every client (both current and potential) want, prices helps us to gauge the demand for our services. It provides us with a road map in which to choose the details in the services that we offer. Price helps us to tailor our services more closely to the market demand.

As a point of discussion below is a list of some of the things that happen when building a website.

• Brainstorming Ideas
• Planning
• Competitive Analysis
• Content Strategy
• Content Creation
• Information Architecture
• Design (both user interface design and site design)
• HTML Coding
• Scripting (PHP, ColdFusion, Ruby)
• Database Work
• Content Input
• Testing

Now the above list is by no means comprehensive, but it’s a pretty good list. Early on, FORGE had difficulty breaking even on web projects, let alone making a profit. Typically, the reason has been our refusal to eliminate anything from the above list on a project that was priced way too low. In this case, price should have served as an indicator of what the market was looking for.

The small-to-medium business website market is typically only willing to pay for the following:

• Design
• HTML Coding
• Scripting & Database (if needed)

As web professionals, we recognize that this lack of proper planning will result in an inferior website. However, the truth is that there is a market for building websites at this price. Our job as a business is to choose if we are going to offer something for this segment.

In Conclusion

We are working hard to try and fully understand the demand for our services.  Our main goal is to put together a world-class group of creative professionals.  This journey (and the economic climate) has led us to spend a large amount of time working through the business realities of the creative industry.

Simply stated, price always perfectly brings balance to supply and demand.  It is impossible for somebody to “pay too much for something”, as if something is paid for then it must have been priced correctly for that transaction. As we try to find the proper price for our services, we hope to gain a greater understanding in the creative services industry.

How has price affected your business?  Comments below!

So I was wondering what it would be like if FORGE treated potential clients like we treat prospective employees.  Instead of us selling ourselves, we would let potential clients know if THEY fit the bill. Here’s my first draft:

INDUSTRY: Any

POSITION: FORGE client

JOB DESCRIPTION:
FORGE is looking for a client with a solid understanding of the world of business, and how design and the web effect their brand as touchpoints. This company must have relevant needs and be willing to discuss these needs with FORGE. This company must also be willing to discuss their budget with FORGE. Also, they must have a budget!

You know you’re the right company if:

• you know what a brand is (or are willing to learn)
• you know what a brand standards manual is (or would like FORGE to create you one)
• you are willing to actually put relevant, well-written content on your website (not just once, but many times)
• you are looking for a long-term partner
• you have a marketing plan (or would like FORGE to help you create one)

You know you’re not the right company if:

• you think that a website is an SEO project
• you think that the Yellow Pages = eMarketing = a good idea
• you just want somebody to draw you a picture
• you want a flash website cause somebody told you it’s cool
• you want to hire a company that “offers search engine optimization and internet marketing services”
• you want a splash page for your website
• you have a great idea for a website, and if we’ll partner with you and make it for free we’ll get paid once it takes off

DESIRED SKILLS/DUTIES:
Applicants must have relevant experience in the “being a client” industry. Although FORGE will consider applicants without experience, they must have a degree in french cooking, as we like to eat. A lot. Potential clients must like to surf (no reason, we just think it’s cool) and have no problem paying their bills on time. Good ideas are helpful, and potential applicants must show experience in approving designs and copy. A college degree is helpful, but not required.

Please send applications to FORGE.

West Virginia Coal Miners in 1908

My father represents a forgotten time and place to me. This time only exists in my head, as history and fact have little place in my vague memory. My mind is tainted by things like my childhood fears that I would one day have to come home black-faced and tired like him. These fears were reinforced by everything from the evening news, with stories from the daily coal soap opera, to the fact that most of my friends’ parents were miners. I simply didn’t have a frame of reference for a different life.

It’s interesting for me to visit Beckley, West Virginia now. While here, I am reminded of all of my insecurities of youth. I am reminded of how I could have been, had it not been for my encouraging parents. There is so much poverty, not extreme poverty, but an overall depression here that is simply heartbreaking to me. One has to wonder, of course, about things like the social aspects of poverty. The answer is never as simple as job creation, stimulus packages, or outsourcing. The blame game that is common, and one that Washington routinely plays on, is simply not robust enough to explain a problem that is deeply associative and complex such as the economy.

The pervasive redneck mentality that is common in places like West Virginia is based upon a purposeful separation from “the establishment”. Of course, the establishment in this thought process is also the pathway to economic prosperity, as it can only be through embracing opportunity that one is able to move up the economic ladder. One has to only look at the emerging economies of the world to see examples of how the social climate effects economic prosperity. Jeffery Sachs, Director of the Earth Institute at Columbia University and author of Common Wealth and The End of Poverty, has addressed these issues in great detail. The United States and most of Europe have been blessed by a perfect storm of opportunity. We have freedom, natural resources and social progression that allows us the chance to progress. It’s sad to me to see even pockets, like West Virginia, that have thus far been unable to create an environment of prosperity. I would encourage everyone to read the books listed above, which will give you a deeper understanding of economic truth, especially in these troubled times.

Of course, any mention of the negatives of West Virginia is really a contradiction of sorts, as it is a breathtakingly beautiful state. I was amazed the other day, as I was driving through the mountains, at the natural beauty here. A few snow flakes and it seems that Ansel Adams would be at home here.

View from Hawks Nest of the New River in West Virginia

As my path in life has brought me to live in Dayton, OH, I am glad to visit West Virginia on occasion. I enjoy spending time with my family and reminiscing. I love to stop and see the beauty that God has made, and to breath the fresh air that is uniquely home. When I tell people where I’m from, they always respond “I’ve been through there, it’s pretty.” I would encourage you to stop next time; find a state park like Hawks Nest or Little Beaver State Park, take a deep breath and enjoy West Virginia as it was intended. It is truly a perfect example of the adage: “It’s a great place to visit, but you don’t want to live here.” Unfortunately.

As much as I am glad to live in an area that is slightly more economically sound, I wonder what my life would have been like had I chosen the life of a coal miner. Still today, yound men head to the coal mines at the tender age of 18, hoping to land a position in a dying industry. The appeal of college or skilled trade is not enough to battle the weight of an instant career. With the encouragement of my amazing parents, I have battled my way to a college degree (B.S. in Finance from Liberty University). The difficulties that I faced in the process meant that it took me more than 10 years to finish. While I know that everyone has a different story, mine was an internal battle. I persevered to the end, and have found that my old way of thinking has died. In it’s place is a man who does not quit. I am proud of what I have achieved, and by the grace of God I hope to achieve more.

While I am also proud to be a coal miners son, I am more proud of the example that my father gave me. He works a job that he has never liked in order to support his family. He has taught me to love my family and to love God above all. The economic depression here in West Virginia is in direct conflict with the amazing people who live here. One day I am confident that this place will find a new identity. When it does, maybe it will start to more closely relate to the slogan “Almost Heaven, West Virginia.”