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Posts Tagged ‘transparency’

Fast is better than slow (loose is better than tight!)

Fast is better than slow (loose is better than tight!)

Tight, centralised control mechanisms are super attractive to comfort-seeking humans. The trouble is, they aren’t working.

The tougher the times, the stronger the compulsion to issue reams of rules, legislation and policy. Just look at the state of politics, drinking and drug laws; and long-winded employee handbooks nobody ever reads.

Arse-covering document production lures us into a false sense of security, skews our priorities and often demolishes common sense. We focus on empty words and numbers, lazily neglecting to change people’s behaviour and instigate true culture change beneath the surface. Back offices grow, coal face shrinks (NHS?!) and leaders cover their ears as their people grow distracted, mindless and even corrupt – manipulating old school systems by hitting targets at all cost; and producing results that are often the opposite of what was intended.

Did you know that kids are more likely to be hurt or killed by the deluge of vehicles at the school gates than they are by walking or cycling without adult supervision?

And what about the Independent Parliamentary Standards Authority, created as a result of the MPs’ expenses scandal, at a cost of £6.6m – six times the amount the MPs were forced to repay? (Not to mention the 80 staff and £6m per year needed to keep it going).

The world is suffering from The Control Delusion.

Just as faith in institutions has collapsed; tight, linear, rational models of behaviour have been proven to steer us blindly in the wrong direction. The sharpest leaders are beginning to recognise the challenge we face in business is fundamentally human. What makes people work better? What’s our clockspeed? How can we make it faster? How can we make decisions in real time?

The pace of change in the world is rapid and accelerating. Business is slow as hell. It’s time we took a serious look at reconciling, before the gap gets so wide we all fall in (particularly the big ones).

The only way for a high clockspeed business (i.e. most businesses, except perhaps those with decade-long product lifecycles and long-lasting asset value) to survive, let alone thrive, is to get real and loosen up.

The law of diminishing returns states that the more experience an industry accumulates, the harder and slower it is to take the next incremental step forward. Meanwhile, the network effect tells us that the more you add, the greater the value for everyone. The vast majority of businesses are living with the former state in blissful ignorance, as their lifespan compresses. Those who adopt the latter as a means of doing business – thinking of business as a network, an ecosystem, a loose and flexible organism – are thriving.

If you aren’t investing in developing a loose culture, you’re probably going to wake up one morning soon, buried knee-deep in data, wondering what the hell happened. A flat, decentralised, trust-based, collaborative, loosely networked approach to business will win.

It’s not the big that eat the small, it’s the fast that eat the slow.


Kill false assumptions & evolve

Kill false assumptions & evolve

Many of us are making decisions based on false assumptions every single day. In fact we’re underpinning our businesses, organisations, products and personal lives with false assumptions. We keep on doing things that have been proven wrong, that haven been proven not to work, despite mounting evidence that there’s a better way.

Our false assumptions are memes, i.e. viral cultural ideas we pass from human to human, brain to brain (you can read a bit more about memes in my previous post on replicators here). Sometimes we keep spreading memes that aren’t doing us any good, regardless of new information that should illuminate the fact they’re a load of crap.

For example research by MIT, LSE and loads of others confirmed several years ago that our assumption that people perform better when offered a greater financial incentive is wrong. In fact hard evidence demonstrates that when you’re dealing with tasks that require even the most rudimentary cognitive ability, the higher the financial reward you offer the poorer the performance. Surprising, but true. It’s a fact.

Yet still we keep on doing the same old things based on false assumptions, despite the evidence that we’re actually damaging our businesses and our teams’ productivity.

The facts and evidence also tell us what does actually work. What really gets the most out of people and helps them reach peak performance, is autonomy. People like to feel they’re in control of their own destiny – that they’re self-guided; and they want to feel a sense of purpose and mastery. Check out Dan Pink’s commentary on this topic.

If you take these two thoughts – 1. that we’re basing our decisions on how things should be designed on false assumptions; and 2. that people want autonomy – it isn’t difficult to draw conclusions about why platforms like Linux have been so powerful.

The thing is, when we try to design things – technology platforms, mechanisms for rewarding staff, educational programmes – lots of false assumptions come into play. This is precisely why we’ve ditched waterfall development methods in favour of agile methods. It’s risky and expensive to lock yourself in a room for years on end with a massive budget and build something you assume people want; so instead we build a little bit, show the world, learn, tweak, release, learn, tweak, release.

One way to look at optimising how you go about designing your work, life and objects, in a more agile way, is to consider very basic scientific laws and principles.

For instance, consider for a moment how far our human capabilities for designing amazing, functional structures extends. Yep, we’ve designed some pretty cool stuff. But think for a moment, what’s the best designer of all? Look around you. I’d argue that it’s very clear the best designer of all is evolution itself. We only need to look at the complexity and unexpectedness of nature to see that evolution is the ultimate designer.

In fact, organisations, markets, economics, the open source movement – they’re not just like evolutionary systems – they are evolutionary systems. We tend to think of evolution the way we were taught at (linear) school… that it’s just a biology thing; when in fact it’s the most powerful recipe for finding innovative solutions to complex problems.

As philosopher Dan Dennett said, evolution is ‘design out of chaos without the aid of mind’. It’s the act of creating a design without a designer. So long as there’s variation, selection and replication – just like the creation and spreading of human memes – you get evolution. So long as there’s variation – like staff with different abilities; selection – a process of choosing the ‘fittest’ talent; and replication – replicating the good stuff they do… you get evolution. You get the optimum way of doing things, without you having to know in advance exactly what that’ll look like.

So, you might be thinking that’s all very well, but how do you harness evolution to get things done in a better way?

Well, the first thing you need to do is stop trying to be the designer. Stop assuming you know which design will work. There’s no way you could’ve drawn a design for Linux or even Wikipedia that was an accurate picture of how it actually turned out. When you assume you’re the designer and you’ll come up with a design that’ll work, you end up spending loads of money, taking loads of time and by the time you unleash your design on the world, it’s outdated and you discover many of your assumptions were wrong and you’re screwed (ask Microsoft).

Companies who fall in love with their designs and cling onto them despite evidence they don’t work will die. Companies who embrace evolutionary principles will thrive. That’s the reason why so many start-ups find success in such unexpected places. Look at Paypal – they started as a PalmPilot app.

The really hard part is dealing with large organisation, with deeply embedded management hierarchies and industrial revolution legacy thinking.

The good news is that the answer lies within. Management doesn’t have to come up with a crazy new design. It’s much easier than that. They just need to create an environment where the optimum design will evolve; and the way to do that is to get out of the way.

Big companies are chocful of hundreds, thousands of brains. The answers lie in there somewhere. The trouble is, traditional top-down communication and top down hierarchical management can’t extract them. These hundreds, thousands of people are desperate to self-guide, to work autonomously, to contribute great innovative leaps – just like MIT and LSE and numerous innovative companies have proved. They just need the ability to work together and to break out of the old siloed routines.

This sounds scarily like losing control to many organisations. And relinquishing control is exactly what it is. But it needn’t be scary. To remove the fear, all that’s required is a universal understanding of some basic rules… and a splash of trust. As John Whitney, a professor at Columbia Business School said, ‘More than half of a traditional organisation’s activities, including the use of time clocks that monitor workers and marketing campaigns designer to win back disappointed customers, are needed only because of mistrust’.

If everyone understands the rules and they aren’t too prohibitive and don’t hamper evolution and autonomy, it’s a recipe for success. By enabling everyone in an organisation to connect with everyone else if they need to, spreading this sort of understanding is easier than ever.

These days it’s startlingly cheap and easy to enable everyone in an organisation to connect with everyone else if they need to.

Simply by questioning assumptions – and by putting basic collaboration tools and systems in place – and by creating a culture of experimentation, of iteration – create, share, test, tweak, create, share, test, tweak – innovations will evolve naturally, teams will be happy and we have a way forward that’s altogether more fulfilling and more aligned with not only the outside world, but our fundamental human nature.


Markets are conversations… so what? Part II

Markets are conversations… so what? Part II

Following my last post a few folk asked me to expand on how to enable two-way comms.

To cut a long story short, if you’re a big company with loads of people wanting to talk, the only way to get scale is to empower your staff to talk to customers. Companies who’ve been around for a long time often can’t see a way to make this happen – or it’s already happening in pockets under the radar and they don’t know how to control it. The important point to remember is the same mentality and methods that’ll lead to success on the outside are those you need to apply internally first. The rest will follow.

Begin by asking yourself whether your staff are able to connect with one-another really easily. Can they find and converse with colleagues in different countries, offices, departments, at all levels? Or is communication and messaging top-down and one-way? Top-down one-way communications are distinctly unreliable. One weak link in the chain and the message gets lost; and no feedback means no improvement.

Multi-directional networked communications, on the other hand – enabled via enterprise social networking platforms, forums, wikis or other collaboration tools – equip you with armies of influencers to spread the word on your behalf.

If you fail to empower your internal advocates, you’re making life very hard and expensive for yourself.

What’s more, there are so many brains in big organisations that the knowledge, ideas and answers are always in there somewhere. The challenge is joining them up – making connections and finding ways to bring more transparency – so inspiration, participation and new behaviours spread all the way through, with newfound velocity.

As well as repairing weak, unproductive cultures and removing barriers to forward motion, the key reason it’s vital to harness collective intelligence nowadays is the quickening pace of change in the outside world. Big bureaucratic structures make sense when no radical change is taking place, but it stands to reason that a fast-changing environment calls for greater agility. Likewise, hierarchy becomes inefficient when we need more info, more interaction, quicker decision-making and rapid action.

So help your teams talk to one-another in all directions. That’s it. Those who understand the ‘markets are conversations’ mantra and how to leverage networked communications will be in there somewhere and they’ll spread their understanding like wildfire.

Universal, embedded understanding renders (expensive) control measures (and blind panic) completely unnecessary.


Markets are conversations… so what?

Markets are conversations… so what?

Despite the old ‘markets are conversations’ mantra being so well used nowadays, many organisations (particularly big ones) are still struggling to get to grips with its true meaning and what they should actually do about it.

The long and short of it is that at any given time there will be a bunch of customers out there who want to talk to you and about you. Sometimes they’ll want to complain that the product they bought was the wrong size, wrong colour, broke after a day’s use… sometimes they’ll want to praise you and thank you for such incredible service. Sometimes they just want to know when their package will arrive or when the next software release is due out.

The obvious change in recent years impacting the frequency of conversations is the ease with which anyone can share their thoughts via social channels (today it’s YouTube, Facebook, Twitter, blogs… tomorrow something else). Reducing barriers to conversation has set the advocates free. Now everyone can share what they care about. The downside for those with something to hide is the fact the same tools have set the detractors free too.

Now that people have a platform through which their voice can be amplified, success in enabling advocates and pacifying detractors hinges on two key principles.

1. Your biggest influencers are early adopters, so focus on them relentlessly. The rest of the curve is really good at ignoring you, so don’t waste your resources. Instead listen to and converse with the early adopter crowd and they’ll market to the rest on your behalf, at no extra cost.

2. If your product or service is crap, the detractor conversations will be happening right now whether you like it or not. Priority one is to fix your product/service and priority two is to join in the conversations. Or you can flip this and start talking to the outside world openly about how exactly to fix your product/service (but you better be prepared when the floodgates open). It’s vital to tell the truth. Given it’s out there anyway, you can build trust by ‘fessing up; or destroy it by ignoring the obvious or by pumping out generic PR.

So when we say ‘markets are conversations’, if you interpret that as ‘a bunch of people want to talk to us and we should enable that’, you’ll be on the right track.


The conversations are out there

The conversations are out there

Many companies still hold a deep-seated fear of two-way conversations with their customers. The idea of enabling direction interaction with individuals seems like a massive can of worms. How can we trust our employees to speak on behalf of the company? Aren’t we inviting trouble? Couldn’t it damage our reputation? How can we control the conversations? How can we eradicate the negatives? Do we really need to be taking this risk anyway? Is it worth it?

The answer is yes. It is worth it. In fact you don’t have a choice, unless you want to drift progressively further from your customers. What’s more, the conversations are already happening and there’s nothing you can do about it. 90% of consumers online trust recommendations from people they know and 70% trust opinions of unknown users, so either stick your fingers in your ears shouting ‘la la la’ while your revenues dwindle; or join in and embrace the chatter as an unprecedented opportunity for growth – a platform for gaining revelatory insight and feedback in real time and for amplifying the voice of an army of promoters… your most effective and cost-efficient salesforce.

At the end of the day, it’s basic common sense that any business needs to be where its customers are. In the UK, a 2008 Nielsen survey showed 97% of the UK’s population were shopping online (Japan 97%, Germany 97%, USA 94%, South Korea 99%). As for mobile… well, eBay just did $500m through their mobile app.

Protecting reputation and retaining control isn’t what’s important. What’s important is driving profitability through innovation. Success is achievable by relinquishing control in the confidence that you have the infrastructure, strategy and toolkit in place to listen and respond to the conversation. None of those things are hard to come by [email me if you'd like to discuss: jane@resonanceblog.com].


Skipping the curve

Skipping the curve

Most people at some point question what they’re doing… where their life is going… whether they’ve achieved enough or made the correct choices. Whether they should be playing this game or jacking it all in for a beach shack. This post is for all you guys. ;-)

I, for one, sometimes get sick of the sound of my own voice, repeating the stuff of ‘those who get it’ – as if it’s still brand new. As long as there are ‘those who don’t get it’, perhaps we still feel good about ourselves. Or maybe we’re all secretly afraid we’ve wasted our lives on a load of old bollox?

Here are a few typical state-of-play regurgitations:

- Markets are more competitive and we have more choice (long tail etc)

- Broadcast is crumbling as we filter the noise

- Marketers increasingly have to justify their budgets (and silver bullet solutions fail to deliver on promises)

- Markets are conversations

- Word of mouth recommendation is the biggest influence on purchase decisions

- People no longer trust authorities, institutions and advertising

- There has been a power shift from brand to consumer

- 360 degree, relevant, targeted, tailored, personalised blah blah

etc etc

We bang on about social media and word of mouth as if they’re actually marketing disciplines. Word of mouth is not a marketing discipline. Social media is not a marketing channel.

The reality is, they’re just more of the same thing humans – people of the world – have always done… more communicating. Not rocket science. We’ve always done it and we always will – with increasing speed and ease via technology, in our evermore fluid, diverse societies.

Unless we’re all gagged, of course we’ll share things and recommend stuff. It isn’t a phenomenon; and it doesn’t even necessarily have to be ‘harnessed’.

Okay, so there’s a general coming-around to the idea that advertising is dead. Market research is also balancing on a credibility knife-edge. Back in 2005, Simon Clift, CMO and Group VP of Unilever’s Personal Care Division, said, ‘I just don’t believe in predictive research. And we don’t use it.’

No surprise there, when you think about it. We ask people what they think, what they do and what they’ll do in the future – and take their answers as if they’re objective truths. We extract wads from brands knowing full well that’s somewhat counter to common sense, particularly as we’re in the futurist half-arsed scientist’s club and we know better.

Perhaps we need to ‘fess up and admit the truth… i.e. that we don’t have a clue. Our predictions are based precariously on platonicity. We suffer from confirmation bias, historical bias and more or less any bias you can think of that makes us think we will be and were right.

If you consider the kind of industry thinking and activity we had in the past; the kind we have in the present; and the kind we futurists have about the future… how’s about we skip all that – skip the curve – and start making things happen in line with the future beyond our current prevarications.

past_present_future1

Maybe it’s worth considering that marketing is dead (or at least will/could/should be). That business models are people-driven. That nobody wants to have a conversation with a Brand. That there are no Us and Them divides between brands and consumers – we’re all just people. That scalability comes from putting the people of the world in control. That the complex supply chains which leverage the hoarding of knowledge for big bucks are no longer needed nor wanted (we see them falling by the day). That we marketers are no longer needed nor wanted. As individuals, we’ll control our incoming and outgoing communications ourselves; in a punk-capitalist-come-communist society (if you feel the need to name it). The knowledge of the people of the world is out there and it’s spreadable, mashable, monetizable and free. So many of our positions are no longer relevant. What a bloody fantastic opportunity!


Google aiming for real relevance

Google aiming for real relevance

Google has announced the launch of “Interest-based” advertising as a beta. Here’s what Google says about three important features of interest-based advertising:

- Transparency – We already clearly label most of the ads provided by Google on the AdSense partner network and on YouTube. You can click on the labels to get more information about how we serve ads, and the information we use to show you ads. This year we will expand the range of ad formats and publishers that display labels that provide a way to learn more and make choices about Google’s ad serving.

- Choice – We have built a tool called Ads Preferences Manager, which lets you view, delete, or add interest categories associated with your browser so that you can receive ads that are more interesting to you.

- Control – You can always opt out of the advertising cookie for the AdSense partner network here. To make sure that your opt-out decision is respected (and isn’t deleted if you clear the cookies from your browser), we have designed a plug-in for your browser that maintains your opt-out choice.

So, it seems we’re getting closer towards respecting people’s preferences and asking for permission. Still a way to go on the privacy front. Of course if the ads are truly relevant we won’t recognise them as ads at all.


  
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