Declining Gizmo Sales: The “Who Moved My Cheese” Analysis

CNET reports today that TV sales are down. The article closes with this line:

These kinds of slumping progress reports from all sectors of the technology industry have become practically commonplace. Declining revenues are particularly a problem in consumer electronics as shoppers are finding themselves with less discretionary income.

My thought is, “declining revenues” isn’t a problem, it’s feedback. People’s discretionary income reductions are a fact, not some strategic issue to be worked through. We’re living in the midst of a tremendous shift in our economy, where the techtonic plates beneath us have not yet found their final resting places. The scenario in the consumer electronics market, to me, is reminiscient of the shrinking pile of goodness in that allegorical little book so many business people have read, Who Moved My Cheese?

I’m guessing that some of the folks at Samsung and LG have read it. I’m guessing Erica Ogg, author of the CNET article, has read it or at least is aware of it. And yet… the point of the article is, “We have a problem.” This implies a solution related to boosting demand for consumer electronics to pre-problem levels. Which is silly. Consumer demand is not presently driven by product features; it is tied to macro-economic forces well outside the control of TV manufacturers.

So where does the “problem” mindset come from? Bonus calculations, maybe? The workers who saw the writing on the wall don’t want to be penalized because of those who took risks with corporate money. The sales people want to protect their rewarded  because they’re working harder than ever. Managers want their bonus because the downturn was out of their control… everyone’s hands are in the pot, no one’s listening, and it’s not because they’re evil, but because collections of human beings in times of change are wired to behave as a confederacy of dunces.

The solution to this problem is tricky, but I think it includes the use of language that avoids describing the situation as a problem. I think industry insiders and analysts—ahem—would serve us better to discuss this issue as a reality that simply is. This doesn’t change anything… yet it changes everything because it changes our perspective. This phrasing would help people more quickly accept that the cheese is gone. It would help them find more sustainable, forward looking solutions that would better serve themselves, their organizations, and our society.

Because I can tell you one thing: more TVs in our homes is not the answer to our problems.

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Tagged as: change, current events, economy, strategic thinking