Gingrich South Carolina Victory Means Republicans Playing with Fire

Perhaps it’s a harsh critique, but one cannot say that Conn Carroll of the Washington Post is using faulty logic when he writes that America hates Newt Gingrich.

His theory is backed by 3 separate polls that measure favorable vs. unfavorable ratings among voters. In Gingrich's best of the three, the number of people having an unfavorable view of Gingrich is 27 percentage points higher than those who hold a favorable view.

With Newt Gingrich’s South Carolina primary victory, Republicans are at a minimum at least flirting with the idea of handing him the nomination. Although Mitt Romney has long been presumed to be the front runner for the nomination, delayed results that handed the Iowa caucus win to Rick Santorum mean that Romney has won only one of three voting contests. That’s the same as Santorum, and now Gingrich.

To say that Republicans are playing with fire with Gingrich is an understatement.  His South Carolina victory seems to be the result of a Mitt Romney implosion; a reaction of disapproval from voters on the heels of attacks against Romney that highlighted layoffs and company closings he oversaw as the CEO of Bain Capital, not to mention Romney’s waffling on releasing his tax returns and his own revelations that, despite his massive wealth, he pays a lower tax rate that many Americans.

The underlying concerns Republican voters have with Romney, however, will not be mitigated by a Newt Gingrich nomination.  Republicans concerned with how Mitt Romney will be able to stand up to Barack Obama on healthcare, due to Romney’s support of a similar health care overhaul while governor of Massachusetts, seem to have forgotten that Newt Gingrich has supported the main bone of contention among conservatives against the program: individual mandates requiring health insurance.

If Republicans are concerned about Romney’s wealthy CEO background fueling Democratic characterizations that he is out of touch with ordinary Americans, those charges may seem like nothing in comparison to the criticism Gingrich will receive over his $500,000 Tiffany’s bill.  If voters aren’t reacting well to Romney’s wealth, one can only imagine how they will react to a candidate who may not be quite as wealthy, but is more careless with his own money.

Then there are the questions about character, including charges of marital infidelity. Gingrich was able to successfully fire back against CNN’s John King in a debate setting when King brought up allegations from one of his ex wives that he wanted an open marriage. It’s a strategy that works among a conservative electorate that distrusts the mainstream media, but one that likely won’t work with independent voters in a general election.

Failed marriages are just skeletons in the closet that we know about. There are yet-to-be known issues lurking under the surface as well.  Democratic House Minority Leader Nancy Pelosi hinted as much when she said that there are thousands of pages of information from a 1990’s ethics investigation that she’ll talk about when she feels the timing is right.

Analysts still say Romney has an edge in Florida, but Gingrich has the entire momentum heading into the January 31^st contest. Florida is the fourth most populous state in the Union, and an upset victory by Gingrich would give him the lead in primary / caucus wins and establish him as the new frontrunner. Republicans may be looking past Gingrich’s negatives, but voters as a whole aren’t doing the same, and the polls prove it. What will happen next rests squarely with Republican voters. They should know that they are playing with fire indeed.

Did you like what you read? Keep posted on my latest insights & analysis.  Follow on Facebook, Follow on Twitter, or Subscribe with RSS. Share with your friends through one of the links below.

The Five Levels of Change Engagement

If there's one thing that is certain, it's that change is happening. How you engage change can have a dramatic impact on your life. In this video, we identify the 5 levels of change engagement and what they mean for you.

Broaden your perspective with the latest thoughts on business, politics & life.  Like on Facebook. Follow on Twitter. Subscribe with RSS.

Business & political lessons from the Cain campaign

The campaign may be over, but the public sentiment that put him near the top isn't going away. Three lessons both businesses and politicians can learn from Herman Cain's campaign.

Herman Cain’s campaign is over. Charges of sexual harassment & marital infidelity were simply too much for him to overcome. His opponents are gloating, his supporters disappointed and the Republican establishment is relieved.

Herman Cain’s campaign shouldn’t be simply written off as a fluke.  There are important lessons to be learned for both politicians and businesses looking to get ahead in today’s cultural climate.

Lesson 1: Outsiders are in vogue

Herman Cain didn’t simply defy the typical Republican profile for a presidential candidate (a black conservative as a serious contender), he defied every profile. He had never held public office, not even on a city council. Yet he turned what many in the establishment considered to be a weakness into part of his appeal. Even after misstatements that caused some to question his foreign policy credentials, he was still on top in many national polls for the GOP nomination. Oftentimes when an organization is broken, someone from the outside has to be brought in to fix it. Voters bought into the idea that someone doesn’t have to know all of the answers if they can look at a problem from outside of the box and make good decisions.

Being part of the establishment is not a benefit in today’s world. Just like establishment politicians, Bank of America, General Motors and Fannie & Freddie are seen as the bad guy. It’s those who are seen as outsiders who have the hearts and minds of the American people.

Lesson 2: People are ready to shake the status quo

Herman Cain’s major policy proposal was his 9-9-9 tax plan, which would have simplified the tax code by imposing a 9 percent flat corporate tax, 9 percent flat income tax and 9 percent national sales tax. His tax plan would have completely changed the way our federal government collects revenue and would have actually cost many people more money.  Despite these facts, it was his 9-9-9 tax plan that was his major draw as a candidate. People don’t like the current system, and people are ready for a major change to the status quo, even if it means some negative consequences and unknown risks.

In both politics and business, America seems to be lacking in new ideas. Fixing both our political problems and business challenges within the framework of the past doesn’t seem to be working. Voters and consumers are begging for new bold new ideas, and they will flock to those who provide them.

Lesson 3: Keep it simple

Many politicians and businesses try to be all things to everyone, with carefully crafted plans designed to appeal to as many people as possible. It can certainly be argued that this is the case with Mitt Romney, who is as polished as any presidential candidate in recent memory. Romney has carefully crafted his positions on everything from the economy to social issues, defense & foreign policy. Cain, on the other hand, certainly wasn’t everything to everybody. In fact, his foreign policy positions were confused if not non-existent. But Cain didn’t pretend to be an expert on everything because he didn’t need to be. The economy and our national debt are what are on peoples' minds today, and Cain was still able to go head-to-head with Romney both nationally and in key battle ground states.

Focused and disciplined strategies win in politics and they win in business. A simple message that everyone understands allows you to stand out from the pack and be known for something.  It’s easy to be all things to everyone when times are good, but when times are tougher people want a specialist. Those who have the right specialty for the right situation will often get picked over those who have a longer-established track record overall.

Final thoughts: Authenticity is key, and character still matters

All of the excitement in the world for a red-hot candidate couldn’t overcome the negative effects of questions about character. As important as anything else to the rise of Herman Cain was a sense that he was the real deal. The fact that he was unpolished and unashamed of it caught everyone’s attention and only drew people closer to him. Whether the allegations against him are true or not may never be known, but just the idea that he might not be who he presented himself to be was enough to doom his campaign.

Like politicians, a business is doomed if it doesn’t deliver what it promised the customer. If you say values matter, live them. If you say you’ll give an amazing customer experience, deliver on it. Authenticity matters. Character matters. It’s an important lesson for everyone to remember.

Broaden your perspective with the latest thoughts on business, politics & life.  Like on Facebook. Follow on Twitter. Subscribe with RSS.

Are You Creating an iPhone or a Casino

In your job, your career or your life, is the sum of what you have created more like an an iPhone or a casino?

Perhaps an explanation is in order.

The iPhone is a powerful invention. It's legacy will be more than just a product that is bought, consumed and discarded. It has changed lives. People are more connected with the world around them. We communicate in new ways. Email can be checked and written from the road, photos and videos of important moments can be snapped and shared from anywhere. People use it to do things faster, better or just more uniquely.

The iPhone adds value to society. It is a contribution.

The casino, on the other hand, contributes nothing. Some casino customers may leave with more money than they brought in, but most will leave with less. The casino will say that they provided the customer with entertainment, but while people often say, "That concert / movie / football game was amazing," nobody says, "I really enjoyed losing money at the casino."

No wealth was created from the casino, just a transfer of money from many to a few.

There is money to be made in providing products & services with positive customer benefits, just as there is in creating the next big scheme. Schemes are easier, but you give back nothing at the end of the day.

So what are you creating? Is it more like an iPhone or a casino? Both can give you personal wealth, but only one can create lasting greatness. When your work is all said and done, if you want to leave a positive legacy, choose work that leaves a positive impact on everyone.

Broaden your perspective with the latest thoughts on business, politics & life.  Like on Facebook. Follow on Twitter. Subscribe with RSS.

The Opposite of Meeting Needs: Trying to Gouge Your Customers

In an earlier post, we wrote about one of the main keys to business success: recognizing the needs of others and taking action.

What happens when a business tries to grow revenue without taking that route? They resort to simply trying to get more money from their current customers.

It’s a move that sometimes works, but often times backfires. For an example, look no further than Bank of America’s move to charge a $5 monthly debit card fee.

Every enterprise wants revenue. That’s just a simple law of business.

Bank of America, in order to accomplish this goal, could have found new products to offer their existing customers. They could have found ways to get products to people who had traditionally not been able to get access to them. They could have explored different business models.

Instead of using imagination and ingenuity, however, they decided that their current customers should simply give them more money for the same service.

These moves don’t always backfire. Companies raise fees due to increased costs all of the time. In fact, we predicted on this blog that other banks might model Bank of America’s fee if they get away with it, and even though Bank of America has backtracked on their debit fee, they’re still trying to increase fees.

All too often, however, these moves fail. Increasing fees on existing customers only work as long as there are no other alternatives, but it is the increased fees themselves that make the opportunity ripe for competitors to see the incentive in finding a way to do it cheaper and more efficiently.

It’s harder (our current economy is proof enough of that), but using imagination and research to determine unmet needs and meeting them will always work out better in the end. There’s always the risk that a competitor will take your idea, run with it, do it better and ultimately be the winner, but the bottom line is this: those who are the most tuned-in to the needs of others will always be the winners in the long run.

Broaden your perspective with the latest thoughts on business, politics & life.  Like on Facebook. Follow on Twitter. Subscribe with RSS.