By Geoff De Weaver, CEO + Founder of Touchpoint Entertainment Inc.: https://geoffdeweaver.com/
So just how does the term ‘Fiduciary’ resonate with you, your organization or your Board in the Age of Disruption?
As you probably already know, the word comes from the Latin word fiducia, meaning “trust,” and, for Board members, it is usually defined as follows:
“An individual in whom another has placed the utmost trust and confidence to manage and protect. A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one person is actually accepted by the other person. Mere respect for another individual’s judgment or general trust in his or her character is ordinarily insufficient for the creation of a fiduciary relationship. The duties of a fiduciary include loyalty and reasonable care of the assets within custody. All of the fiduciary’s actions are performed for the advantage of the beneficiary”
But how does this definition play out in the Age of Disruption when so many executives still operate on the ‘truths’ of business growth that we were told about 20 – 30 years ago?
Below is ‘The Designers Holy Triangle’ which I remember being drilled into me when creating a project: I was told along with all our clients you can only choose just two out of the three options. e.g. Fast, Good or Cheap. Pick two.
‘The Mad Men’, like most marketers of this era, would also insist you can’t have it all and tell us. I well remember getting this concept drilled into me by marketing or advertising executives when creating projects with them – they’d always insist you must choose only two of the three options. And, like the ‘Mad Men’, they’d always insist you couldn’t have all three before telling me, ‘It’s the reality of life and marketers, clients and brands must deal with it.
And, like the ‘Mad Men’ these old school marketers would then go onto say things like this:
Good + Fast = Expensive
Choose good and fast and we will postpone every other job, cancel all appointments and stay up 25-hours a day just to get your job done. But, don’t expect it to be cheap.
Good + Cheap = Slow
Choose good and cheap and we will do a great job for a discounted price, but be patient until we have a free moment from paying clients.
Fast + Cheap = Inferior
Choose fast and cheap and expect an inferior job delivered on time. You truly get what you pay for, and in our opinion this is the least favorable choice of the three.
BUT, in today’s DIGITAL DISRUPTIVE ERA these dictums just don’t hold up and couldn’t be more wrong. In today’s environment and marketplace, paradigm shifting companies can be faster, better, cheaper and even more convenient! (Unicorns like: Square, Palantir, SpaceX, Uber, WeWork, etc are proving that daily today!)
Take a look at what Airbnb has done to Hyatt, Ritz-Carlton, Hilton and others – in the business of connecting travelers with affordable, memorable, and sometimes unusual rooms, Airbnb rules the roost and is the 800 lb Gorilla in the hospitality/hotel sector today.
Their unique Business Model means their guests are charged a 6-12% service fee for every reservation booked – the higher the total price, the lower the service fee percentage. And, even though Airbnb Hosts are charged a 3% Service Fee, they are still smashing the Travel and Hotel Industry.
Although Airbnb has been around for approximately six years, it’s already shaken the global hospitality industry, forcing longstanding incumbents to adapt or suffer. Because more than 30 million consumers to date have used Airbnb to find a temporary resting spot, be it for a one-night stay or an extended month-long rental. Airbnb also makes it easier for guests and hosts alike, is disrupting this industry sector at all levels for both business travel as well as vacations.
Importantly, if Hotels want to prevent customers from choosing Airbnb over them, they either have to provide greater value OR they’ll have to offer lower prices.
BUT, Airbnb’s threat is really all about speed. This means if a hotel chain wants to open a new hotel, it would require several years to complete the project. Airbnb, on the other hand, just utilizes the digital space that already exists and can therefore expand its supply very quickly and virally. Hands down…they are the digital disruptors and game-changers in this sector.
The Barclay’s report, entitled “Hotels: Is Airbnb a game-changer?” predicts that, “Airbnb’s growth in bookings could triple in size in the next year, putting the company on track to outpace the largest hotel companies within a few years.” It also projects that “…by the end of 2016, the room-sharing platform could boast 129 million room-nights per year… Airbnb currently represents as much as 17.2% of hotel room supply in New York, 11.9% in Paris, and 10.4% in London, according to Barclays’ estimates, and those percentages are projected to increase.”
So let’s look at some of the other brands, companies, advertising people that are so inspiring in an Age of Disruption and Innovation…I’ve looked at a lot companies and brands in the hospitality, financial services, telecommunications, entertainment, travel business etc. And, I love how the really great airlines and hotels are run and what the smart restaurant operators are doing. They have a tremendous focus on guest service, just as I do and customer experience as they see this as the battlefield on which the war on Digital Disruptive will be won or lost. Then there are the tech and start-up companies that are always comfortable doing things out of the box. It’s part of their culture so they’re willing to take risks and aren’t afraid of making mistakes. Mistakes can make us stronger if we look at them as ‘learning experiences’; so learn from them and always fix them fast.
Company Directors and Leaders need to develop structured frameworks to help guide them and shape the success of their organizations and enterprises. In this ‘always on’ digital world they must consider some new and critical areas they must now manage disruption and create value on 4 levels:
- Refresh and excel at Customer Experience,
- Recalibrate their cost structures,
- Restore and refresh revenue streams, and
- Reshape their corporate vision and strategies.
Company Directors and executives can more realistically manage most functions during a company’s initial stages of growth by decentralizing decision-making. It is also worth noting that delegation becomes more and more important as the company penetrates new markets and grows its subscriber base as witnessed with: Airbnb, Uber, Bla Bla Car, taskrabbit, etc.
Bottom-line – empower local managers to make crucial decisions that will reward you today AND, make sure your Board, and its Directors, understand all the implication of their responsibilities in this Age of Digital Disruption.
To be continued…
Live with passion!
More About Geoff De Weaver:
Hailing originally from New York; Geoff De Weaver is the globally experienced entrepreneur, technology disruptor, trend hunter and keynote speaker behind Touchpoint Entertainment Inc. Geoff is an international business executive with 25+ years experience on five continents in the rapidly-changing media, digital, telecommunications, communications and entertainment industries.
As CEO + Founder of Touchpoint Entertainment Inc., the ‘next-generation’ Social Media Marketing, Big Data and Live Event Company – streams live to over 1.5 Billion fans globally and delivers authentic brand experiences worldwide. I help brands bridge the gap between CONTENT, COMMUNITY + COMMERCE.
C-Level, Marketing Strategy, Digital and Communications Leader with Global Experience – including: US (New York City + San Francisco), Australia, New Zealand, Singapore, Italy, Germany, Brazil, South Korea, Columbia, Finland, Hong Kong, Mexico, Netherlands, Taiwan, the United Kingdom, China, Indonesia and Canada. Geoff has served as a non-executive director, director and advisory boards.
Geoff has a global 25-year background of representing some of the world’s most iconic worldwide brands including: Coca Cola, IBM, IMG, P&G, Microsoft, Nike, British Airways, Wells Fargo, EA Sports, MasterCard, Shutterfly.com, EA.com, E*Trade, Nestle, Air France, AT&T, VISA, Unilever, EA.com, Ferrari, American Express, P&G, Trend Micro, Acer Computers, BMW, Shutterfly.com, Mars, Pfizer, TiVo, EarthLink Internet, American Express, Telstra, Weight Watchers and others.
- Geoff has served as a non-executive director, director and advisory boards
- Top 0.5% Worldwide on Twitter Globally
- Top 1% Influencer on LinkedIn and 32+ million network on LinkedIn worldwide
- Top 1% Most Viewed Profiles on LinkedIn (380+ million members)
- Geoff is a Digital Pioneer, Data-Driven, Entrepreneur, Business Coach + Innovator.
- Transformative, Innovation & Digital Disruption – CONTENT, COMMUNITY + COMMERCE
Feel free to get in touch with Geoff for further information:
You might enjoy these recent posts too:
‘Principles of Leadership in the Digital Age (Part 1)’: https://geoffdeweaver.com/principles-of-leadership-in-the-digital-age-part-1/
AND…. ‘Principles of Leadership in the Digital Age (Part 2)’: https://geoffdeweaver.com/principles-of-leadership-in-the-digital-age-part-2/