Marketing

March 27, 2008

Decrease in unsatisifed customers?

I am sitting here watching the news (or what is supposed to be news) and keep hearing about this poll and that poll regarding the different presidential candidates.  It reminded me of this quote from Evan Esar,

"Statistics: the only science that enables different experts using the same figures to draw different conclusions."

While it is almost humorous to watch the political pollsters argue over a few percentage points, we don't have that type of latitude in our organizations.  Data is the lifeblood for making sound business decisions.  Decisions that could lead to business growth and job creation or decisions that could lead to business decline and headcount reductions.  The data needs to be accurate and precise, and communicated in a way that it clearly represents the facts (or true truth).

I once heard heard some analysts talking about increases in customer attrition rates and they jokingly defined it as "a decrease in unsatisfied customers".

Please be careful how you collect data and communicate information.

March 24, 2008

...and speaking of pursuing your passion...

Maxine Clark has a great passion behind Build-a-Bear.  This story in BusinessWeek online is a wonderful little reminder about the joy you can receive (and help others create) by pursuing your passion.

I particularly like her closing comments:

Finally, you should always allow yourself to dream—and dream big—it's only through such thinking that great things happen. Don't limit yourself because you don't think your dream is attainable. You must start by believing you can truly achieve whatever you set your mind to, no matter how big it might seem. Not dreaming big enough is one of the biggest mistakes you can make—if you can't see your dream, how do you expect others to?

I have always been a strong proponent of dreaming big...or making your goals hilarious.

Doing

Hello everyone!  I am back from my unintended 6-week sabbatical.  What started as a simple delay in blog writing to "do" some work led to re-prioritization (my to do list was already long when I woke up in the morning) which ultimately led to procrastination (as I got a chance to take a breather).  Thanks for hanging with me during this time away.  Also, thanks to my friend Mark for holding me accountable to my blog commitment.

This has been a great 6-week journey of learning for me, particularly around the concept of "doing".  "Do" is a critical step in the knowledge building process.  "Do" is a key part of the Plan-Do-Study-Act (PDSA) cycle, aka the Shewhart cycle or Deming cycle.  "Do" is where work is performed to execute the ideas and hypothesis defined during "Plan".  There is no substitute for "doing".

However, I have talked to many people that get stuck "doing".  They wake up each day, go to work, do the job, then get paid every other Friday.  They have a good job.  They are competent, hard workers, and the boss loves them.  Life is satisfying. 

Sounds like a great gig...here's the problem:  The world is constantly changing and we must spend time growing, developing, learning something new, and continuously improving our skills and knowledge.  Today's highly sought after skill is tomorrow's entry level position (or outsource opportunity).  We must actively manage our growth and career to continuously move up the value contribution curve.  It is about finding and pursing your passion with every ounce of vigor you have.  It is about growing yourself and helping to grow others.

Early in my career I was told that I had a choice to 1) live to work or 2) work to live.  I have come to believe that is the desperate choice of desperate people who have not found or do not pursue their passion.  A few weeks ago I was asked about the most critical characteristic I look for when hiring someone.  For me, it is easy:  passion.  A person with passion is determined, pursues excellence, is willing to learn.  Skills can be learned, but passion is fundamental to growth and adding value.  Pursuing passion nullifies the desperate choice of desperate people.

If you are struggling in the rut of "doing" and desire more, here are some questions to ponder:

  • How much of your time is spent "going through the motions" of your job? 
  • What have you done in the last month to grow your knowledge and skills? 
  • How much protected time do you set aside each month for professional development? 
  • Who is your mentor? 
  • Who are you mentoring?
  • What excites you?
  • What do you want to do next?
  • What type of work environment do you want in the next few years?
  • What do you love?  and...What do you hate?

"Doing" is important, but if you find yourself trying to answer the question of "live to work or work to live", make up your mind that you don't have to make a choice.  Instead, vigorously pursue your passion and enjoy the fruits of your labor.

February 11, 2008

Create an Atmosphere of Innovation

In our ongoing series on business innovation, Clay Richardson and I just posted a new column on BP Trends.  In previous columns we explored creating value through customer-centric innovation and creating agility through disciplined, collaborative business process management (BPM).  This month we turn our attention to the human side of innovation and present a conversation about things you can begin doing today to  create an atmosphere of innovation in your organizations.

Read more about 1) stimulating creativity, 2) setting hilarious goals, 3) making your box bigger, and 4) executing faster...

We hope you enjoy the column.  Oh, and feel free to come back here and give us your thoughts.

October 12, 2007

Quality is Essential

McKinsey recently posted an interview (registration required) with Armand V. Feigenbaum, noted quality guru.  There are some good nuggets of knowledge in this short interview that marketing leaders should listen to as they consider implementing process improvement methods (especially Six Sigma) in marketing.

Some of his specific comments that are particularly important to marketers include:

"Improvements in quality lead to improvements throughout the organization.  Above all, quality must be understood as a management style, and an infrastructure has to exist that supports both the work quality of the individual and teamwork between departments."

"Some companies have an outdated idea of quality and how to improve it.  Managers think of quality as minimizing defects...This aspect has long been an entry-level requirement in competition, but is no longer enough from a customer perspective."

"Many companies don't understand that new market conditions require extensive changes in management methods."

Generally, here is my interpretation of these comments:

Screenshot017 There is consistency with with W. Edwards Deming's Chain Reaction that shows how improvements in quality lead ultimately lead to staying in business and providing more jobs.  Building quality has a flow through effect throughout the organization.  Quality is not necessarily a function or something that a "highly trained Six Sigma Black Belt" can do.  Quality is something that must be a part of the fabric of management, part of the company's DNA.  If you are establishing a quality program or effort in addition to your existing work (or creating special categories of leaders to review and approve projects), you are creating "shadow work structure" that is unsustainable and will ultimately collapse under it own weight.  Quality must be a part of everyone's job.  Not a special function.  If you are waiting for a Six Sigma Black Belt to come fix your processes, quit waiting.  Take ownership and start improving.  If you need a guide to get you going, check out The Improvement Guide.

System Be a Systems Thinker.  Too many people and companies try to work according to the organization chart.  This is not how work gets done.  Silos.  Barriers.  Frustration.  Politics.  Understand the white space.  Understand the processes.  Throw away the org chart and look at how work actually gets done in your company.  Look across business unit and function boundaries.  As marketers, we need to clearly understand the value chain so we can optimize how we go to market. 

Understand your company through the lens of your customers.  Quality of products is not enough.  Customers expect quality products.  What about their experiences?  How are you bringing customer knowledge back into your company?  How is it used?  How does it shape marketing?  Design customer experiences that expand their expectations.  How do you do it?  Quality.

Finally, as marketers, managers, and leaders in companies, we must always learn, grow, and improve our management methods.  Over the years, I have interacted with a variety of leaders that woke up one day and found their organizations being leap frogged in the market, backsliding, or stuck in a quagmire of operational ineffectiveness.  "We have always done it that way"..."We do it like this because we a different"..."our market is unique and we can't change it"..."we tried changing it once, but it did not work, so we went back to our old way"..."our industry is just too complicated for us to change"..."that would create too much pain in our company"...all words that lead to organization destruction and death.  Be willing to step out, test new ideas, try new concepts, reinvent some old ones.  Sitting still is sliding backwards.

August 30, 2007

"Make Your Box Bigger" Opportunities

Bizbybook For those of you in Houston on weekends beginning Sept 8 & 9, Dr. Ed Young at Second Baptist Church is starting a series called "Business by the Book".  This series will take a look at the biblical principles found in some of the leading business books of the day.  If you can't be in Houston, look for the video and audio feeds here.  This should be a great series.

Also, as a follow up to my previous post on the Personal MBA by Josh Kaufman, be sure to sign up for the PMBA member forums.  This looks like a great place to interact and learn from others in the business world.

How big is your box?

Boxes_4 I've been there.  You've been there.  There are people there right now.  The always hyped, sometimes glamorous workshop designed to create breakthrough ideas to solve an important business problem.  A room full of flip-charts, Post-It notes, markers, and whiteboards.  A witty facilitator kicks off the meeting with a few logistics for the day, and then turns it over to the sponsor who uses a variety of business cliches to rouse the participants into a frenzied froth of innovative energy. 

"Today more than ever, we are at a critical juncture in the life of our company.  We need to become a leading provider of {your product or service here}.  Our competition..blah, blah, blah....The future of our existence hangs in the balance.  We need to have a paradigm shift, use best practices, and grab the low-hanging fruit...Let's gain some synergy, maximize our leverage and, at the end of the day, be innovative to push the envelope for seamless integration across the enterprise.  Going forward, think win-win.  Focus on the 80% we can impact...." (create your own cliched speech)

Then comes the dreaded phrase, "Let's all think outside the box".  Blank stares.

The problem with "thinking outside the box" is that everyone has a box and each person has a box for a reason.  Each individual's box is the cumulative effect of experiences over a lifetime.  It is individual perspective.  It is the lens through which each person views life, work and the world.  Thinking outside the box is an extremely difficult, daunting, and painful task for most people.

So, what do you do?  Instead of thinking outside the box, work to "make boxes bigger".

How do you make a box bigger?  In the long-term, it is straightforward...more and varied experiences.  From reading different types of books to work assignments in different cultures to employee swaps among strategic partners, the more varied your experiences, the bigger your box will become.  Be a student of the world, soak in the unusual, stimulate your curiosity, and search for new ideas off the beaten path.

In the near-term (e.g. for a workshop or meeting) it is more difficult, but not impossible to expand boxes.  First, you will need to redirect minds away from solving the presenting problem and towards observing the world around them.  Staring at the problem too long will blind people to creative alternatives.  Next, get people to "overlap" their boxes through collective interaction and building on ideas.  Collective action and building on ideas creates a much larger footprint for alternatives.  The best answer is rarely a new idea created from scratch.  More often, it is maturity of an idea that has been built upon by many people and made relevant in ways that are truly valued by those we serve.

How big is your box?  What are 3 things you can do today to start making your box bigger?  What can you do to help others make their box bigger?

August 23, 2007

Nothing New Under the Sun

Companies are aflutter about innovation, but is anything really new?

  • Twitter is the evolution of the telegram...
  • Blogs are the evolution of cave drawings...
  • Facebook is the evolution of "hanging out with friends"...
  • Six Sigma is evolution of quality and statistical methods...
  • Bionic is the evolution of the artificial limb...

Yes, there are many "new" technologies or configurations of existing technologies that enable us to live our lives and do our jobs better (according to the outcomes we specify), but nothing is being created that did not already have the potential to be created by man.  There is definitely dependency on previous discoveries and innovations, there is definitely sequencing of discoveries (i.e. Facebook could not have existed before the Internet), but there is nothing new that did not, or does not, have the capability to exist at its appointed time in human history.

Everything that is new today was simply waiting to be discovered.

What does it mean for us in our work and lives?  While there is nothing new under the sun, there is the opportunity to discover, configure, and innovate.  All the tools of innovation are available for everyone.  Everything that you need already exists.  Actively observe your surroundings.  What are people doing?  What problems can you solve today with a little observation, thinking and creativity?

August 21, 2007

The Problem with Corporate Marketing

Working in a corporate, or centralized, marketing functions can be painful -- particularly in organizations that are matrixed or organizations that separate strategy and execution.  Marketing can become the central function vs. the region, the business unit, or the field office.  Marketing can become less about accomplishing growth for the company and more about managing the politics of the company.  Marketing may spend more time "staring at its belly button" instead of learning and acting in the marketplace.

A key problem tends to be an alignment mismatch between the corporate function engagement model and the level of authority for execution and results.  My friend, Scott Ellis, showed me this matrix a few years ago, and I use it often as lens to begin understanding alignment mismatches and options for corporate functions to deliver value.

Centralorgapproaches_6{Click image to enlarge}

Ineffective & Frustrated:  Pain is created when corporate marketing operates with an engagement model designed to "push" programs, standards, policies, campaigns, strategies, etc. to localized marketing organizations without the level of authority that makes corporate marketing accountable (e.g. "buck stops here") and responsible (e.g. perform the task, obligation to do the work) for execution and results.

There are two basic ways to alleviate the pain: 

  1. Secure accountability and responsibility through a Sr. Executive directive.  This model is efficient and effective, but is often engaged through an effort to centralize the marketing function (i.e. reorganization).  It creates major organizational, structural, and process changes throughout the organization, and may take years to implement effectively.
  2. Change the engagement model to one that operates in a consulting, shared service, or center of excellence capacity.  Instead of "pushing" work to internal marketing groups, find their points of pain and help them solve their problems.  Take the lead from the "regional" marketing groups and use the central marketing group to create value through a collaborative and participative process.  This engagement model requires a service delivery mindset for corporate marketing personnel.

Questions for action:  Where is your organization on this matrix?  Is your corporate marketing group ineffective and frustrated?  What actions can you take to become "effective & efficient" or "collaborative & consulting"?

Side note:  This is a simple lens to frame problems and begin understanding how to make a corporate marketing function more effective.  It is a demonstration of the matrix, or the 2x2 diagram at work.  Paul Williams does an excellent job explaining the 2x2 in this post.

August 17, 2007

Expand with LinkedIn

My "virtual" friend Adam Salamon makes a really good point today in his post "Connect with me on LinkedIn".  Use LinkedIn to grow, not just manage, your network. Sometimes we work really hard to constrain rather than grow our network.  LinkedIn is simply a technology that should help us grow.  The real leg work (yep, the 4 letter word called "work") is actively engaging, investing time and energy in getting to know people.

I will take his lead.  Feel free to connect with me on LinkedIn also. 

However, I will make one addition to his comments.  When sending a LinkedIn connection request, don't simply use the canned LinkedIn request wording.  Customize your request to the person.  Especially if you don't know the person, give a couple simple bullets to let him/her know why you want to connect.

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