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#117 Kat Cole: The Power of Possible

Aug 10, 2021 1h 4m 25 insights
Kat Cole discusses how "the power of possible" guided her from a part-time job as a hostess at a Hooters restaurant to one of the most respected business leaders in America. In this wide-ranging episode Cole discusses the dark side of gratitude and how it can keep you in place, defaulting to believing in people, leading with a heavy heart while navigating through tough times, adopting new roles at work, questions to ask to uncover the truth in business and personal life, and so much more.   Cole spent roughly a decade in leadership roles with Focus Brands, the global multi-channel franchisor and operator of Cinnabon, Auntie Anne’s, Jamba Juice and others. She was named President and COO of Focus Brands in 2017 after she spent five years as the President of Cinnabon. She left the company in December 2020.   -- Go Premium: Members get early access, ad-free episodes, hand-edited transcripts, searchable transcripts, member-only episodes, and more. Sign up at: https://fs.blog/membership/   Every Sunday our newsletter shares timeless insights and ideas that you can use at work and home. Add it to your inbox: https://fs.blog/newsletter/   Follow Shane on Twitter at: https://twitter.com/ShaneAParrish
Actionable Insights

1. Default to Believing

Default to believing in people’s potential and possibilities, as the upside of being proven right in their potential far outweighs the low frequency of being let down.

2. Prioritize Doing Right

Always prioritize doing the right thing for the right reasons, even if you are legally or technically ‘right,’ especially when trust and relationships are at stake, as preserving them is paramount for long-term success.

3. Beware Gratitude’s Dark Side

Be aware of the ‘dark side of gratitude,’ ensuring that being grateful for what you have doesn’t prevent you from recognizing your right and responsibility to work toward something better.

4. Leaders Must Ask Questions

As a leader, cultivate the courage to ask probing questions, even if you feel humble or respect those who came before you, because your role demands it to uncover truth and prevent problems.

5. Conduct Monthly Relationship Check-ins

Implement monthly relationship check-ins with your partner, using specific questions (e.g., best/worst part of last 30 days, what can I do differently) to foster intentionality and deep understanding, aiming to be as good at home as in business.

6. Three Questions for Business

To identify critical business improvements, ask employees: ‘What do we throw away?’, ‘When do we say no?’, and ‘If you were me, what’s one thing you would do differently to make the business better?’, then immediately act on patterns found across these answers.

7. Embrace Humble Confidence

Approach new challenges with ‘humble confidence,’ believing you can figure things out rather than needing to know everything upfront, which balances humility and curiosity with courage and confidence.

8. Leaders: Prioritize Self-Care

Prioritize self-care, mental health, and physical wellness as the essential foundation for effective leadership, especially during exceptional times of change and difficulty, to ensure you are strong and present when needed.

9. Be Open & Vulnerable

Become comfortable being incredibly open and vulnerable with your team, as this fosters reciprocation, creating opportunities for mutual support and permission to prioritize well-being when needed.

10. Change Formula for Unpopular

To roll out unpopular changes, confront reality by presenting both positive and negative trends, find and empower a ‘coalition of the willing’ to architect and champion the change, then shine a light on their success to inspire broader adoption.

11. Practice Customer Service Judo

When dealing with difficult customers, use ‘customer service judo’ by using their energy in a giving way (e.g., proactively offering a small concession) rather than fighting them, which can disarm them and change their behavior.

12. Address Performance Directly

When addressing performance issues like lateness, clearly state the impact of the behavior on others and the business, and ask the person to commit or adjust their priorities, treating them like an adult and clarifying dependencies.

13. Lead Former Peers Authentically

When promoted to lead former peers, acknowledge your past imperfections and commit to doing things the right way going forward, expecting the same from your team, which earns respect and levels up performance faster.

14. Assume Criticism is Correct

Anytime you are criticized, first assume the criticism is correct and allow yourself to digest it before responding, which helps you either reaffirm its inaccuracy or find a grain of truth to address intensely.

15. Strategic ‘In/Out’ Decision

During personal difficulties, strategically decide whether to ‘put yourself in the game’ or ’take yourself out’ for a moment, based on physical and emotional well-being and whether it will be a positive experience, communicating this to your team for support.

16. Balance Leading & Collaborating

Build the leadership muscle of balancing leading, directing, and collaborating, making clear decisions based on input (or despite it) and communicating the ‘why’ to shape the future working culture.

17. Address Upset Stakeholders

When addressing upset stakeholders, first allow them to express their anger, then clearly state what went wrong, explain the corrective action, and set clear expectations for future similar initiatives, emphasizing learning to repair trust.

18. Navigate Omni-Channel Tensions

When managing tensions between different business channels, honor the emotional concerns, provide data evidencing incrementality, and most importantly, ensure the new channels genuinely build the core brand and business to mitigate complaints.

19. Choose Pricing Strategy

Make a fundamental choice about your brand’s pricing strategy: either compete on value (a race to the bottom) or position as aspirational/luxury, competing on quality, as this dictates brand positioning and subsequent pricing psychology.

20. Optimize Pricing for Frequency

Identify the ‘sweet spot’ pricing range that optimizes trial and repeat purchases for your product or service, avoiding prices so high they relegate it to gifting or so low they devalue the brand.

21. Adapt to Shrinking Markets

When the market for your core, expensive product is shrinking, introduce smaller, less expensive alternatives to capture a growing segment of customers, thereby ‘going to where the puck is going’ and expanding your market.

22. Manage Pricing Extremes

When sophisticated A/B testing isn’t possible, focus on managing pricing extremes to prevent sales drops from being too high or leaving money on the table from being too low, ensuring basic pricing health.

23. Leverage Bundles & Subscriptions

Explore pricing strategies beyond individual item pricing, such as bundles or subscriptions, to create additional value for customers and enhance engagement with your product or service.

24. Reinvest Innovation Revenue

Reinvest revenue generated from new innovation channels back into the core brick-and-mortar business to accelerate recovery and growth for existing stakeholders, creating a virtuous cycle that strengthens the foundation.

25. Frame Brand as Ecosystem

Frame your brand not just as a core business, but as a ‘branded ecosystem’ where the franchise business is the heart, surrounded by complementary retail channels offering variations of the product to diverse customer occasions.