Endless Encores: A Brief Excerpt on Profits

EE CoverWith the September 22, 2015 publication of my second book, Endless Encores, I wanted to share a few excerpts to catch your interest. Published by The Story Plant, this is a business parable about People, Products, Profits—in that order. This excerpt is from the chapter about Profits.

♫ ♫ ♫

There was a modest rumble in the room. A flight had been called. It was not Daphne and Paul’s flight to Los Angeles, but both were heartened by the rustling of computer bags and rollaboards around them as fellow passengers-in-waiting began ambling to the door. It had been a long night, but now it appeared the delay would not go on forever, nor the conversation.

“We have hope,” proclaimed Paul. “We’re going to get out of here.”

“Hope is the strength that keeps us going,” said Daphne, watching people around her happily begin to leave the airport lounge. Since their flight wasn’t leaving, she had no reason to follow them, but she knew her remaining time with Paul would be limited.

“When you set out to determine strategy, how do you think about building the business so it keeps growing?” continued Paul. “No sane executive wants to lead a company into the Dead Brand Graveyard, yet so many end up there. Suppose they have the best people and the best products. How do they get their head around a business model that is going to both work now and expand into the future?”

“That’s the greatest enigma of all,” answered Daphne. “You have to think about recurring revenue alongside new revenue. Some transactions have to be there without your prodding, so you can add new transactions on top of them. If you’re going to spend money to acquire new customers, you have to balance that with what you’re spending to retain the ones you have. If all you do is spend to acquire new business, your margins will be perpetually squeezed. No fun, I assure you.”

“My boss says that all the time,” agreed Paul. “If every year you start the P&L from zero, it’s virtually impossible to grow. You have to know there is some business already on its way from your catalogue of products, and on top of that you add new product introductions.”

“Smart guy, your boss,” said Daphne. “He gets the mix a lot of us miss. Maybe he was at the same Paul McCartney concert I attended.”

“The same boss who isn’t going to can me for this lackluster sequel?”

“Yes, that clever fellow. Let me ask you something about that catalogue of products, the base of recurring revenue. Do you cannibalize your own markets before the competition does it for you?”

“Well, we don’t put out the same videogames, so it’s not exactly possible,” said Paul. “But if you’re asking do we sometimes leave one out there longer than we should to extract the last bit of profit from it, yeah, we do that sometimes.”

“How does it make you feel?”

“Queasy”

“Me, too,” winced Daphne. “I think we all do it to some extent, but the key to all of this is balance. Yes, you need a base of recurring revenue, but if you don’t give your customers something new and exciting before your competitors do, they will sweep your customers into their camp. You have to study and manage the ratios of evergreen and introductory endeavors at work in all your sales channels. Remember, constraints on distribution are low, choices are high.”

“It’s staggeringly hard to find the stamina to pull a product from the shelf when it’s still selling,” said Paul. “R&D costs are ridiculously high. We need all the sales we can muster for contribution margin to make sense.”

“One of the hardest choices in business is to pull a product while it’s still moving. Again, what we are talking about is strategy. Of course you don’t want to leave more money on the table than you should, but you’ll often find you need to leave some. If you don’t do it, your competitors will happily obviate your offerings. That can be the end of one brand and the birth of a new one that is no longer yours.”

♫ ♫ ♫

Endless Encores: Repeating Success Through People, Products, and Profits by Ken Goldstein is available in hardcover and as an e-book from Amazon, Barnes and Noble, iBooks, Kobo, IndieBound, Indigo, and at independent bookstores near you.

“Focus relentlessly on the extraordinary.” Pub Day

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Endless Encores: A Brief Excerpt on Products

EE CoverWith the September 22, 2015 publication of my second book, Endless Encores, I wanted to share a few excerpts to catch your interest. Published by The Story Plant, this is a business parable about People, Products, Profits—in that order. This excerpt is from the chapter about Products.

♫ ♫ ♫

Paul’s phone dinged. It was the text alarm. He was afraid to look, but he knew the Band-Aid had to be ripped off in one pull. He turned over the handset so they could both see it at the same time. The text read: “We’ll talk when you get back.”

“I’m not off the hook,” grumbled Paul. “Not even a little.”

“Did you expect you would be with a simple text?” asked Daphne. “He’s your boss, not your father. How much did your company invest in the sequel?”

“Millions. We’re not going to lose all of it. We may not lose any of it. We just aren’t going to make the kind of money we made on the original. Sequels in my business are supposed to do better than the originals as the brand and market expand. Everything we do can’t be a winner.”

“Would you let Randy or Helen off the hot seat for mediocre performance with just a text?”

“No, of course not,” said Paul. “I would remind them that there is no growth without risk, that we have to be willing to try things and fail, but when we fail we have to learn. It’s not failure if it’s learning, but there has to be learning. You have to capture that learning and harness it.”

“I suppose he’ll say something to the same effect,” said Daphne. “Of course, I’ve never met him, so you never know. He could mop the floor with you to make him feel better.”

“Thanks, I feel so much more chipper,” grimaced Paul.

“You should,” said Daphne. “Think about the opposite spectrum. Suppose you weren’t willing to risk failure and learn. Suppose you devoted all your energy to protecting the status quo. Think of a company that isn’t around anymore that tried that trick.”

“Kodak comes to mind,” said Paul. “I read somewhere that they developed the first digital camera in 1975, but kept it off the market because they were afraid of what it might do to their traditional film processing business.”

“Polaroid missed the shift to digital as well,” replied Daphne. “They didn’t have to stick with mechanical, self-developing prints. That was a choice.”

“It’s amazing how bad the blunders can be,” continued Paul. “Borders Books, Circuit City, Tower Records—they’re gone forever. With all the customers they had, the vast resources, all that talent and cash in the bank, these days they’re just names, empty shells. Businesses become nostalgia.”

“Tombstones, actually, all in the Dead Brand Graveyard,” said Daphne. “No Endless Encores there. The list goes on and on: Palm, Zenith, Blockbuster, CompUSA, Wang Laboratories—all once beloved brands, all now decaying tales of yesteryear. Now think of the once great brands about to fail, the ones you know will soon evaporate. What is their idea of risk?”

“Way too conservative,” answered Paul. “They’re afraid to take risks because they’re afraid of failing, when in fact they’re already failing by refusing to dance a little closer to the edge.”

♫ ♫ ♫

Endless Encores: Repeating Success Through People, Products, and Profits by Ken Goldstein is available in hardcover and as an e-book from Amazon, Barnes and Noble, iBooks, Kobo, IndieBound, Indigo, and at independent bookstores near you.

Dear RadioShack

RadioShackGreetings, my fellow nerdy friends. I read with concern last week in the business press that you are closing as many as 1100 stores, following your well-received Super Bowl commercial earlier this year. You are not alone. Sears is closing stores. Staples is closing stores. Quiznos is closing stores. There seems to be plenty of commercial real estate coming on the market in all shapes and footprints. I wanted to write to you because I used to love the RadioShack brand, and I would hate to see it join the other tombstones in the Dead Brand Graveyard. You see, I was a bit of a geek as a kid, still sort of am, mowed a lot of lawns and bought my first CB Radio at RadioShack way back when, then used to love to hang out with the other geeks in the store.

So I wonder if the big-salary strategy teams sitting around the table in your headquarters this modern moment have asked themselves the following ten very personal questions:

1) When was the last time they shopped unprompted as a customer in a RadioShack?

2) What did they love about walking into the store?

3) What did they love about the shelf displays in the store?

4) What did they love about the merchandise on sale in the store?

5) What did they love about the staff in the store?

6) What was in the store that was unique, perfectly priced, or presented so well they couldn’t say no to it?

7) How much did they spend of their own money in the store?

8) Did they tell a friend about the experience and urge that friend to also visit the store?

9) When they got home, did they think, oh wow, I should have bought something else while I was there?

10) Are they actually excited about visiting that store again as soon as they can?

The reason I ask is, I never worked at a RadioShack, but I used to be able to answer every single one of these questions in the affirmative. I was a brand evangelist for RadioShack. I actually loved your brand.

At the moment I have no clue what it stands for, except every once in a while I need an obscure electronics plug or unusually shaped battery, and I drop by because you’re paying top dollar for a great location right between my bank and a sushi place I enjoy. If it pops in my head, sometimes I drop off a bucket of old batteries for you to recycle, and if you have the gizmo I need, I gladly fork over about $3 to $8. The guys at checkout always ask for my zip code for some reason, even though I know you know it, because you used to mail me a catalogue several times a year with cool stuff to come see and at least one great coupon offer, but no one there seems to know me after 40-plus years of stopping by. I’m glad you still have the little wired metal gizmos when I need them, and I wish I could spend more money while I was in the store, but there’s really nothing I need or can’t get online cheaper, and the guy behind the counter doesn’t seem to want to swap stories about weird-shaped neon mini bulbs anymore. I miss that guy, he was a geek like me.

You were once the Tandy Corporation, remember? You sold leather goods. Then you reinvented and became RadioShack, and we geeks thought it was a cool place to gather, kind of like Egghead, before they became rent-free NewEgg. You had the TRS-80 and knew how to load software on it! Are some of those geeks at your conference table? Do they love your brand the way we did–not like, but actually love? If they don’t, are they able to articulate what happened to the magic?  Because if they can’t, and they don’t want to go to RadioShack like a real customer, then why should I? I mean, sure, anyone can hire an agency to do a killer commercial, and you can love a commercial, but that’s not the same as loving a brand. It’s also not the same as a reason to go into your store.

I do believe you have to eat your own dogfood if you want someone else to give it a taste. That’s just me. Call me a simpleton without an MBA, but when I love a brand, and I have reason to recommit my loyalty to that brand time and again, price is only one part of my decision funnel. I want a brand that comes with a promise. What’s yours?

I won’t be writing this letter to Sears or Staples or Quiznos, although I do occasionally frequent those stores, but I did want to share my thoughts with you, because there was a time not long ago when you meant something to me. Like Borders. Like Tower Records. Like Blockbuster. Those old friends are no longer to be found. I wonder if the people sitting around the table in their final year loved their brands as much as their customers once did, or if they just ran spreadsheets and focus tests.

There’s a lot going on in a store; it’s a great laboratory for learning. When there’s nothing going on there at all, you can learn even more.

It all begins with a promise.

Signing off now, that’s a big 10-4.

Brands in Memoriam 2013

Amazon CEO Jeff Bezos made a spectacular impact recently when he went on 60 Minutes the day before Cyber Monday and gave us a glimpse at the future—a fleet of small delivery drones he branded Prime Air. It was a bold statement, and whether intended or not an incomparable public relations move that got much of the nation talking about his online retail company at precisely the most important time of year for consumer purchasing.

Yet I might be in the minority thinking that was not the most interesting thing Bezos talked about on television and in the zillions of video clips that got sent around the digital world in the days that followed. What I latched onto in the Bezos appearance was this little exchange with Charlie Rose:

Jeff Bezos: Companies have short life spans, Charlie. And Amazon will be disrupted one day.

Charlie Rose: And you worry about that?

Jeff Bezos: I don’t worry about it ’cause I know it’s inevitable. Companies come and go. And the companies that are, you know, the shiniest and most important of any era, you wait a few decades and they’re gone.

Charlie Rose: And your job is to make sure that you delay that date?

Jeff Bezos: I would love for it to be after I’m dead.

Well, if Jeff Bezos who is currently sitting on top of the business world knows that sooner or later his company is toast, I think that is about as telling a tale of creative destruction as I can imagine! With that, here is this year’s short list of additions to the Dead Brand Graveyard:

BlockbusterBlockbuster: Aptly named for its status as the big bust of this year, Blockbuster is a sad loss for me. Harken back to the early days of video home rental and there were thousands of mom and pop stores in neighborhood strip malls. It seemed inevitable that these shops would fall victim to industry consolidation to achieve buying power and scale where margins were thin, and Blockbuster came to rule the day. My experience of Blockbuster was that it somehow held onto that mom and pop feel of a local video store, and at least where we rented they always were friendly, helpful, movie nuts, and the checkout line moved pretty quickly. Then as VHS gave way to DVD, along came the startup Netflix to reinvent the space, and Blockbuster went to sleep. By the time they woke up and decided that Netflix was onto sometime with their mail order subscription programs, Netflix was already reinventing itself as a digital distributor, and Redbox had figured out how to pick up the kiosk business with zero personnel vending machines. Blockbuster was two generations behind the innovation curve, and when Dish Network bought Blockbuster ostensibly as a storefront competitive tool in its battle with DirecTV, it was too little cavalry too late to justify the ongoing operating costs.

Current TV: It is hard to argue that Current TV ever acquired much momentum as a brand unto itself, although it’s hard not to draw a certain amount of attention when one of your masthead investors is former Vice President of the United States Al Gore, coming off a nail biter contested single state vote count that almost made him President of the United States. If you poke around the web for remnants of Current TV’s brand strategy, it was to be something like a news network for ages 18 – 34, where much of the content would be user-created, uploaded to a destination online site, and then curated for television cable audiences. I think the notion that I have to say something like denotes that the ill-formed brand strategy never got much resonance, which might have been reinforced when the strategy suddenly shifted to hiring high-profile former ESPN star turned MSNBC darling Keith Olbermann—at a big salary, with even bigger expectations. The concept of building a line-up around a tent pole Olbermann anchor also never resonated, so when Al Jazeera America came knocking with a monster payday for the founders of the 60 million subscriber reach network, it was an easy call for our former VP to call it a win and walk off the field. Not surprisingly, Olbermann went back to sports.

MetroPCS: Remember when we could look forward to airwaves of virtually unlimited choice and price competition due to the wonders of telecom deregulation? No, you forgot, too? MetroPCS is another brand that probably didn’t leave behind a lot of emotional longing with customers, but it is interesting to note that its founding dates back to 1996 and it came to position itself as a carrier with unlimited wireless communications for a flat fee and without an annual contract. The company was a pioneer in 4G LTE rich communication services, and with more than 9 million subscribers grew to become the fifth largest carrier in the United States—both good reasons for it to be acquired by T-Mobile which cemented its position as the fourth largest carrier in the nation. Still feeling good about all the many companies out there fighting hard for your smart phone bill?

What are the key takeaways from this year’s exit crop that might inform a Bezos-like objective of bolstering your brand to outlive your own era? First, speed is everything in the digital age, rest even a millisecond too long on your laurels and it will probably be too late to catch up with that company that leapfrogged you (Blockbuster). Second, a confused brand strategy results in a confused product strategy (and vice-versa) and swinging at that with pricey tactics doesn’t clear the confusion (Current TV). Third, an undifferentiated commodity without sufficient scale will not stand solo long in a consolidating market (MetroPCS).

Last year in my Brands in Memoriam post I went out on a limb and called Blackberry dead. I took a little heat for that, what I probably should have said was RIM (Research in Motion), the holding company for Blackberry was dead, and Blackberry was on deathwatch. Honestly, I feel okay about calling Blackberry dead, to me it’s spiritually dead, and while some loyals are still pounding thumbs on their mini-keyboards, it’s hard not to believe the clock is tick-tick-ticking to Final Jeopardy on this one. Slammed by creative destruction and inexcusably poor management—a very tough critique because it was a visionary company much beloved that lost vision—it is today a zombie brand at best.

Going out on less a limb this year, I don’t think I would be alone in calling for grave concern around the survival of Sears, J.C, Penney, and Radio Shack. I will climb out a little further and hope that Dell finds a fruitful path soon, as it is hard to believe the PC or laptop business is on the mend, or there is much room on the shelves for another flavor of tablets or tablet/keyboard combos. U S Airways is also likely to evaporate when its merger with American Airlines is completed. I hope I am wrong about all of these because we are talking an awful lot of jobs at risk in our too fragile economic recovery if we lose any let alone all of these. Let’s hope management is inspired with some leapfrog ideas for reinvention and revitalization.

Did I miss any for this year or in the near term gun sights of creative destruction? Feel free to chime in below and add your assessments, predictions, and prognostications. Just remember, if you tiptoe out on the limb, forward judgments of demise have an excellent history of being proven wrong!

The 70% – Part 2

EngagementHierarchyIn the Executive Coaching Workshop I co-lead with John Vercelli for Coaches Training Institute, we discuss early in the curriculum the pervasive epidemic of Bad Boss Syndrome.  It is jaw-dropping how many employees reflect on the lack of leadership and vision they receive from those who manage them, how starved they are for inspiration, and how little it takes to turn a bad day into a good day.  When you think about the study published recently by Gallup noting that 70% of employees are disengaged — and that too many of them hate their jobs — boss improvement is a good place to start.

Another good place to start is the Dead Brand Graveyard, where we also focus in the workshop.  Surely some brands die purposefully in mergers and consolidations, but my observation is that many more die because they break their promise to their customers, who simply move on.  In a world of virtually unlimited customer choice, when a company fails to innovate or repeatedly breaks a brand promise, the Dead Brand Graveyard is soon to cement a new tombstone.  For the employees who are part of the letdown, the lost promise, and ultimately the job loss that follows, demoralization is readily understood.  Remember, a lot of these employees came to their companies with hope and passion and energy and ideas.  They may have had the solutions to their company’s death sentence on their desktops.  Perhaps no one was listening.  That takes us right back to Bad Boss Land.  It’s an infinite loop.

Let’s pull these two concepts together — bad bosses and dying brands — and then think about the twelve Gallup questions which you can find in last week’s post, Part 1 of this inquiry.  None of the questions involve compensation.  They ask things like whether individuals have the opportunity to do what they do best, whether their supervisor cares about them or their advancement, whether the mission or purpose of their company is understood and they are part of something that matters, whether there is a commitment to quality in the workplace, and whether there are peers or leaders in the environment who are supportive.

Human stuff, huh?  HR mush?  Not the stuff of hard-won profit and loss?  Garbage!  If companies have it so right, why are brands evaporating from the landscape in record time?  Why are fully capitalized companies lasting half as long as the average human lifespan?  Creative destruction, you say, the natural course of things business?  Well, sure, I’ll give you that.  So is top management willing to say the whole Circle of Life is out of their hands and the survival of the enterprise is entirely up to market forces, to fate rather than strategy, to a competitor’s campaign rather than a driven response to galvanizing the single most important asset in the company’s inventory, the intellectual capital that is allowed to rest idle and fester?

That’s not very optimistic.  And yet, optimism is the spirit that drives opportunity, and opportunity is the backbone of capitalist enterprise.

Why do we so often get this so completely wrong?  Why would we let 70% of employees churn in the ranks, angry and sad and defeated?  Why would anyone allow a brand to go stale, to break a promise to a customer, to fail to reinvent itself when invention is the lifeblood of all revenue and profit growth?  Borders, Circuit City, Kodak, Polaroid, Palm — all once admired companies, all with revered brands — what do you suspect the internal opinions were of management as repositioning opportunities were missed and tired product performance spiraled downward?

Much has been written about short-term versus long-term financial incentives as value destroying tactics, particularly among senior management at the top of the compensation bell curve.  That is only part of the problem.  Certainly if you set a sales target for a commission based or stocky savvy executive, she or he will chase that goal aggressively, often with widespread collateral damage.  Yet is it the incentive that is the time bomb, or the misperception on the individual’s part of the fundamental rewards that may or may not be at hand?  To that end, I mentioned that the Gallup poll does not reference compensation.  I would be willing to bet Big Money that the disengagement factor cuts across every salary band in the spectrum.  It is my own observation that once you get past basic human needs being met — housing, food, safety, decent educational opportunities for the kids and maybe a family vacation now and again — there is no guarantee whatsoever that financial reward brings vast job satisfaction.  I have met as many or more unhappy wealthy people as I have in the middle class.  The tendency to focus on the wrong motivation is not exclusive to the underpaid or overpaid, and the failure to align truly rewarding incentives with human performance is almost always the difference between long brand life and flash in pan cash register rings.

When I hear that 70% of employees are disengaged, and when I see brands and companies dying in record time, I experience one story.  We try hard to focus the executive coaching mission on revitalizing the human potential in an organization, to bring the executive’s focus back to the brand promise, and to evangelize that set of values broadly among the members of a team as a rallying cry.

I see three major factors that matter in a job — what you do, who you do it for and with, and the compensation you receive for what you give.  If the first two mandates of that string aren’t met, it seems ludicrous to believe that compensation is going to make up for the loss.  And if the only thing that people are focusing on is compensation, what real chance does that company have at longevity?  A brand will not be reinvented because it needs to be more profitable; it will be the magnet of innovation because people care about it and bond together to transform it into something it currently is not because it matters.  From that investment of idealism will flow vast improvements in continuing profitability.

Short-term harvesting of any cash cow is possible — if you want to squeeze profits, go ahead and squeeze the people who are producing them.  At the moment 70% of those people are telling you they don’t like what they are doing or who they are doing it for.  Want to make the Big Money that lasts the long run?  The Gallup survey tells you in the questions alone where we’re leaving the Big Money on the table.  Start Thinking Different!

Bosses must learn to listen.  Employees need to teach their bosses to listen so they can be heard and emerge.  Coaching can be implicit or explicit, but it has to be obvious that letting ideas flow not only improves morale, it is vital to sustaining the enterprise.  Companies that last do so because they apply long-term strategies, both in terms of bolstering their brands and employee engagement.  Everyone can win — especially customers — if that’s the walk that leadership walks, leadership by example.  It does not happen accidentally, but by commitment, and constant reminder of core values that can be shared.

For me, it will always be People, Products, Profits — In That Order.

Brands In Memoriam 2012

Frequent readers of this blog know that I am obsessed with the concept of creative destruction, the intangible but daunting market force where an invention that is vital takes out that which has become defunct, and the nascent replaces the established. For those of you just stopping by, you will find any number of mentions of creative destruction as you page through my posts on innovation—it represents for me all that is true and real in deploying creativity to survive in business, perhaps best captured in the title of Andy Grove’s definitive book, “Only The Paranoid Survive.”

As a result of creative destruction, every year we add more once significant names to the Dead Brand Graveyard. Recent memory had us bid adieu to such iconic enterprises as Palm, Saab, Lehman Brothers, Zenith, Compaq, Borders, Circuit City, Ritz Camera, CompUSA, Mervyn’s, Friendster, Tower Records, Polaroid, and Kodak. I polled my network on Facebook for suggestions to include this year and got way more than I could include in a single blog post, many of which could be argued are still on the bubble; some have already quietly jumped the shark, others are still operating as near zombie brands, not yet coming to terms with their imminent vaporization. I invite those dear friends who offered their suggestions to include them in the comments below—as well as anyone else who can see what is certain to end badly—as internal politics and stagnating ideas cause those who should know better to obscure the mandate of leadership.

Here then are my top label farewells for the current calendar year:

Continental Airlines Logo Circa 1940sContinental Airlines: As a result of the merger between United and Continental, the marketing folks did the right thing and picked one brand to make it easier to find your tail logo on the runway. Was anything really lost if this was just a merger? Ask the people (like me) still stuck flying United—yeah, the customer experience did the impossible and took another plunge. If you aren’t 1K at this point in your frequent flyer status, melt down your Premier Card, there are so many top dogs in the system the rest of us matter not, kiss upgrades goodbye. Choice on routes? Funny how the routes and times keep getting de-duped. It’s ironic that an industry that flies you around in the sky at 500 mph and largely invented the modern loyalty program today can’t come up with more clever ways to achieve growth than eliminating its own competition—plus five extra inches of leg room, baggage checks, and those yummy inflight box lunches are now upsells. The parade of eliminated airline brands welcomes another, while customers fume with rising prices and deteriorating service. Hard to believe this is a path to long-term health and improved profits in a backbone industry our economy needs to thrive.

Fresh & Easy: This expansion into the USA didn’t go so well for UK grocery titan Tesco. Any ideas why? Been in one? Okay, that’s a good start. Here’s another—where was the segmentation analysis? Same prices and quality as the giant American supermarkets like Safeway, but a smaller footprint and thus fewer shelf offerings. Same footprint and attempted laid back environment as Whole Foods or Trader Joe’s, but no real upscale inventory warranting premium prices or nice people to kibitz with you at checkout. No meaningful differentiation to be found, and small parking lots, too. Ready made portions for young working professionals weren’t a home run in a market with as much choice and variety as ours. Head on competition with Wal-Mart—which can operate at scale near 3% net income while it’s strategically expanding in the grocery category—was a capital-intensive bet inclusive of acquiring real estate and building new stores, a tough play requiring far-ranging commitment and vision to warrant the pain. Without either, Tesco cut its losses and retreated.

Newsweek: This one is spiritually sad for us old school hard news and analysis junkies, except that I cannot remember when I last touched a copy of this magazine, even in a dentist’s office. Bought in 2010 from The Washington Post by audio magnate Sid Harman for $1 and assumption of the losses, ostensibly for sentimental reasons, it was then merged via IAC with The Daily Beast and put under the direction of star editor Tina Brown (there’s a cost saving measure, huh?). Circulation and ad rates for the print version of Newsweek never regained momentum sufficient to cover costs, so this year we heard announcement that the print edition is ceasing. Can Newsweek digital-only survive as a differentiated masthead next to The Daily Beast? Can you imagine a good reason to continue two separate editorial teams? Can you imagine the same editorial team producing two presumably different publications? Have you tried to sell display advertising lately for vertical online editorial products? And just what is a News-Weekly in the age of internet microsecond breaking info copy? At 79 years on the newsstands and in mailboxes, Newsweek had a good run, it just stopped evolving.

Hostess: It seems obvious to many that the sub-brands of 85-year-old Hostess will live on post the uber bankruptcy, and there will be some snack distributor out there continuing to put Twinkies, Ho-Hos, and Ding-Dongs on grocery store shelves everywhere (other than Fresh & Easy, see above). The master brand is likely to die with the corporate entity, as executive management was unable to make a deal with the labor union representing the workers who made the Twinkies, Ho-Hos, and Ding-Dongs. So 18,000 people lost their jobs because no deal could be reached between managers and workers? I don’t think that’s the whole story. Try a balance sheet too weak to support internal investment after emerging from a prior bankruptcy with private equity imposed debt and mounting unfunded pension obligations. The real culprit in my mind—you got it, thinner margins and declining market share due to lack of innovation. Hostess management—now asking for bonuses in liquidation—failed to bring relevant new products to market in a climate where obesity and diabetes became part of the vernacular. Wonder Bread may have been the greatest thing since… whatever came before it, but not in a world of seven grain all natural high fiber baked fresh daily, sliced thick and thin or not at all, your choice.

Blackberry: I am going out on a limb here, calling the magnificent former high-flier from Research in Motion dead even though launch of a new platform has been loaded into the cannons for ignition. Why do I say it’s gone with two new Blackberry’s rolling out as soon as next month? As noted in the Wall Street Journal last week, “Consulting firm IDC recently estimated that RIM’s share of the global smartphone market stands at 4.7%, down from 9.5% at this time last year and from more than 50% in 2009.” Sorry, but when a company has less than 10% of the market share it had three years ago, I am not sure how you could classify a recovery as anything more than a dangling lifeline. What went wrong? Ever try to use the Blackberry browser? There is no word in our language of which I am aware to adequately modify the word slow. With an extremely late to market touchscreen interface, where was the incentive for app developers to develop apps? Those of you who know me know my devotion to the thumb driven analog keyboard, but when I tossed it in for an iPhone 5, I knew the rest of the thumbers were coming too.

There were a number of brands suggested by my colleagues as sighted on death watch, but I’ll let those opinion makers chime in themselves and go out on their own limbs as I did with Blackberry. I have my suspicions about who might be on deck for next year’s list, but I will keep those sealed for now in a paper envelope so as not to publicly curse them or too soon embarrass myself for being wrong. Some in the soon to be gone circle I still like and am hoping for a comeback, though not many.

I think I may make this an annual feature. History would suggest I won’t have much trouble coming up with a list each year. Why chronicle the abdicated? Creative destruction is permanently embedded in our business culture, and even the greatest company can be gone in a single product cycle if customers aren’t understood to be our ultimate boss. With constraints on distribution forever less a moat and abundant technology a ceaseless path to increased consumer choice, business leadership requires nimble execution, unending responsiveness, and gracious humility to constantly win anew customer loyalty. It’s a lesson we all need front and center to do our jobs honestly and well: Innovate quickly or die.