Transformation
Change must be based on the need for improvement, not responding to the actions of others
By James Fisher
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Jim Fisher is CEO of Houston-based IMST Corp. IMST is a site selection, market analysis, and sales forecasting firm providing data needed to maximize the potential of retail businesses and locations. Jim can be reached at (800)
231-4678 or jfisher@imstcorp.com |
A couple weeks ago, I was driving on
Interstate 70 from Kansas City to Columbia, Mo. Just on the west side of Columbia is a big oversized billboard advertising the location of a retail facility of one of this industry’s icons. What was most noticeable about the advertising was its agedness; it was faded, discolored and just simply looked tired. The thought then passes through one’s mind that if the billboard needs a little attention then how about the store itself? Of course, curiosity does have to raise its head and whisper in the ear, “go check it out,” which is exactly what I did.
Yep, the store (just like the billboard) definitely needs some tenderness and attention given to it. It is an extremely high-volume, multi-faceted (interstate combined with metropolitan demands) unit that does perform exceedingly well for the corporation. However, it has been there for more than a decade now and just needs to be refreshed. Interestingly enough, appearing in industry publications describe how the corporation has decided it is time to transform itself. It appears from this one store (and others in the chain) the timing is perfect. Reading about this one company’s self-transformation just got me thinking…
The dictionary defines “transformation” as “to change the form of (a figure, structure, expression, etc.) without in general changing the value; metamorphose.” Based on all the transformin’ goin’ on, I would say this definition is most appropriate. And boy, there is indeed a lot of transforming taking place in the retail industry.
- Federated Department Stores has eliminated institutional names such as Marshall Field’s, Famous Barr, Foley’s, Robinson Ma, and many more to create the national brand of Macy’s. It would be an understatement to say this move has not been warmly received in many areas of the country. But consumer response is not deterring the company in its quest to establish a household name.
- Kroger and Safeway have made individual decisions to transform themselves and create unique shopping experiences for their customers in the spirit of success enjoyed by Whole Foods, Wild Oats and Trader Joe’s. These are companies that have found strong success based on uniqueness and creativity, and not on copying the actions of others because they have no real identity or signature.
- Cadillac has embarked on an entirely new advertising campaign and marketing strategy to transform itself into the nouveau chic brand that can be enjoyed by the young upwardly mobile. It wants to remove itself as being viewed as the geriatric brand enjoyed by all those over 60. How do you think that is working for them? Seen a lot of those young’uns driving around in an STS lately?
- McDonald’s has decided to transform itself through its McCafe (and a new elevated hot beverage offering) and take on the domination of Dunkin Donuts in the Northeast and Starbucks in the Northwest. The preference of the customer for these two accomplished brands and what they offer is not really considered, nor directly addressed.
- Wal-Mart has decided to develop a nouveau riche designer line of clothing so that it can transform itself into assuming a position in the mindset of the Target customer, even though all roads point to the fact that the two customer groups are diametrically opposed.
The list of examples could continue to include major oil companies, hotel chains, airlines, churches, banks and many more that we all can immediately recall. The absolute fallacy in so much of this is that a company cannot universally or globally transform itself. It cannot be successfully accomplished because it is not relative to nor do such actions relate to individual markets. Transformation can be achieved on a very specific, targeted basis and only with such soundly justified action can success be found.
Before transformation can take place, a company must know what it is and how to take it to the marketplace successfully. With change comes further challenges, but meeting such challenges can lead to a higher level of success than previously realized.
Transformation must be derived from the inherent need of wanting to improve and further the accomplishments of our own company and not as a method of trying to competitively respond to the actions of others. Uniqueness is found within the core of oneself and not from trying to respond to others. Creativity is given to us by us to be used to better serve those who depend upon our businesses as part of their lives; it cannot come by creatively copying the uniqueness of others to better serve ourselves. We must know who we are and what we want to be prior to ever committing to the demanding art/science of transformation.
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