May also be called "Five Organisation Lessons" from the Wiggles we can learn.
5 Business Lessons From The Wiggles
January 19, 2012, 1:10 pm David Koch Yahoo!7
They're worldwide rock stars, but what can businesses learn from The Wiggles' story?
Yes they may be the world's most famously upbeat children's entertainers, but don't think all they can do is a good hot potato. These four Aussie blokes have over the course of 2 decades built one of the most successful and recognisable franchises in the world. For years they've been at the higher end of Australia's BRW Rich List for entertainers, last year coming in at 2nd with earnings upwards of $29 Million.
Yes the Wiggles run a fantastic business which spans the globe built on tours and concerts, CDs and DVDs, and merchandise sales of all sorts.
When Greg Page, the man who for so long had rocked the Yellow skivvy was diagnosed with an extremely rare case of orthostatic intolerance – a circulatory system disorder causing blood flow problems – they ran into some problems. Not only was their band losing a member, there were some significant business issues to sort out.
Since the beginning when a young band named the Cockroaches decided to don the bright skivvies and write children's music, the four members each had an equal share in the business. With Page's departure, the Wiggles were forced to buy him out – for a huge amount reported to be over $20 Million.
Sam Moran was brought in as the new 'Yellow Wiggle', however while on stage he was as integral a member as any, back stage he was the outcast Wiggle. Moran was never given equity in the franchise but simply paid a salary (of around $200 000). Consequently the group made famous by their 'sunshine lollipops and rainbows' vibe suddenly was hit with a bit of tension. The cohesion of the group faltered as Moran was excluded from any band decisions, excluded from private meetings, and felt as though he wasn't being paid what he was worth.
And now the original Yellow Wiggle, Greg Page, has made a stunning return to reclaim his bright, figure-hugging crown. It's a cause for celebration for Wiggles fans worldwide, but does throw a spanner in the works from a business perspective. Is Page going to be brought back in as an equity partner like the good old days, or will he be paid a salary as Moran was?
There are a few lessons we can learn from the Wiggles saga that all businesses should be aware of.
1. It pays to hire professional business management experts to build your brand and business
From very early on the Wiggles recognised the potential of their product and took advantage of it by employing experienced business managers to handle the development of their brand, their franchise, and open up other revenue streams. At one point they even hired a marketing executive from Pepsi to handle their business development.
What other band in the world can sell not only concerts but CDs, DVDs, soft toys, board games, has licensed versions of themselves in Korea and Spanish-speaking countries, and even has whole sections of theme parks based on them!
2. Put in the hard yards
The Wiggles might be a picture of success now, but in the early days it wasn't so glamorous. Once the boys decided to launch into children's entertainment they were busking on city streets, doing the rounds at Westfield shopping malls, getting gigs at pre-schools and touring all over Sydney, NSW and the eastern states. According to them it was a "cottage industry", they were their own roadies, even driving the trucks with their equipment in it. But from these humble beginnings they slowly grew, managing their growth the whole time with smart business decisions.
3. Succession planning is really important
With the replacement of Page as the Yellow Wiggle, and now coming full-circle to have Page replace his replacement, the Wiggles have gone through some complex phases.
When a key member of a business leaves, it's vital that careful consideration is made when replacing them. Whoever you bring in has got to feel part of the team so that the culture of the group doesn't change.
The issue with Sam Moran was that he was never included in the core group like Page was. He was supposed to 'one of the Wiggles' but felt like a lesser employee. And so the chemistry was lost.
From the perspective of the original three members of the band, they'd built this world-wide franchise themselves and weren't going to give a chunk of it to a new member, and fair enough.
Now that Page is back the challenge will be to make him feel part of the group again. Because of his financial issues he can't buy back into the business, so how will the group keep Page motivated, enthusiastic and maintain the positive culture within the business?
4. Planning for life outside of the business
Once you sell out of a business, you need to put in as much effort into setting up your next phase of your life with what you get out of the business. It's well known that Greg Page made some serious mistakes with his money once he was bought out of the Wiggles. A string of bad property investments, getting involved in an area outside of his expertise, and taking advice from the wrong people saw his fortune dwindle rapidly.
According to Page, he was trying to replicate his success with the Wiggles in the outside world. Whenever you plan for post-business life you have got to be realistic and never try to become something you're not.
5. Be honest to your customers
When Page was diagnosed and forced to leave the group, The Wiggles thought they could simply replace the yellow member and none of their young fans would really notice. They thought it was the skivvy that anyone cared about, rather than the person inside the skivvy. Needless to say there was huge outcry, kids worldwide shocked and devastated by the replacement of one of the core members.
It's a good lesson; you can't try and trick your customers when something changes in your business. Always be honest, because your customers are smart and will notice the difference.
The past few days have also highlighted the importance of a good PR plan, and carefully crafting your message. With the Wiggles' substitution making news headlines the group has handled the transition poorly, failing to have answers to people questions regarding Sam's departure, whether he's leaving amicably and how it has all gone down.
For more info on Greg Page's comeback read here.
Source: http://au.smallbusiness.yahoo.com/article/-/12654007/5-business-lessons-from-the-wiggles/
