The Current — Volume #008

Welcome — our goal is to provide a roundup of key stories and trends influencing the business landscape in the Sunshine State. We’ll bring the goods with strategies, tools, content, and tactics to help you visualize the future and chart the path to positive outcomes.

And of course, a few fun conversation starters for the (virtual) water cooler. Away we go.

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Swipe debit card, get stock; In defense of the IPO; New models for SMB lending, and more

It is clear that consumers prefer debit cards to credit cards in the United States. According to a Fed payments study, debit card transactions were almost double that of credit cards in 2018: 87 billion debit card payments, versus 45 billion credit card payments.

But that consumer preference comes at a cost. One of the many benefits of a credit card is that it allows consumers to build up their credit scores as they make payments, as well as, earn rewards for purchases. Meanwhile, rewards for debit cards were discontinued by many banks after the 2008 financial crisis. What this means is that consumers paying with a credit card are effectively getting a two percent rebate on all purchases, depending on their credit card reward program.

Many banks and startups are rethinking the debit card from the ground up, and as a16z writes in this post, it is an exciting trend to monitor.

The Incredible Shrinking GM: Mary Barra Bets That Smaller Is Better

We live in a society that values more. Wall Street is looking for more revenue, more acquisitions, and more business lines. But in this age where many technology companies are expanding, General Motors CEO Marry Barra is taking the opposite approach. Barra has been methodically streamlining the famed auto maker to prepare it for the next big bet: electric cars.

Square is Bringing Online Ordering to In-person Dining

Technology has been crucial to restaurants looking to meet demand for online takeout ordering during the COVID-19 crisis, and Square Inc. is betting that the in-person dining experience is also ripe for a high-tech upgrade.

The company announced Tuesday that it was rolling out a QR-code feature that would let diners scan a code on their tables to place orders. The code will automatically take diners to a mobile version of the restaurant’s website, where people will be able to choose items and have their orders sent to the kitchen.

It’s no secret that restaurants have been crushed by SIP orders resulting from COVID. We believe there is a huge opportunity for restaurants to improve their customer experience coming out of the crisis. It seems like Square is a first mover for helping restaurants do just this.

Biz 101

In this new section, we will provide a mental model, strategy, or tactic that a successful businessperson regularly leverages to drive outstanding results. Today, we explore a simple framework for approaching strategy.

The Kernel of Strategy from famed strategist Richard Rumelt

Rumelt believes ‘good strategy’ is broken down into three simple components. He calls it ‘the kernel.’ The kernel includes: a diagnosis, a guiding policy, and a set of coherent actions. Rumelt explains:

“A diagnosis that defines or explains the nature of the challenge. A good diagnosis simplifies the often-overwhelming complexity of reality by identifying certain aspects of the situation as critical.”

“A guiding policy for dealing with the challenge. This is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.”

“A set of coherent actions that are designed to carry out the guiding policy. These are steps that are coordinated with one another to work together in accomplishing the guiding policy.”

While incredibly simple, these three components can help leaders of all shapes think through a various situations and develop better strategy.

For more check out Rumelt’s book: Good Strategy / Bad Strategy: The Difference and Why It Matters.

Maybe You’re Wondering, “Who is Slalom?”

Slalom is a local-first company. With an 8,000-person international presence, we launched in Florida last Fall with the goal of becoming a driving force in our local community.

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