Archive for July, 2008

Best business books of 2008 (so far)

Thursday, July 31st, 2008

It’s been a great year for business books, in my estimation, so rather than hold off till the end of the year, here’s a first-half “best of” list for your perusal:

The Opposable Mind” – Roger Martin. How the greatest business innovators can resolve paradoxes and therefore create new markets.

Presentation Zen” – Garr Reynolds. Radical rules for creating and delivering powerful business presentations.

Rain Making” (2nd edition) – Ford Harding. Finally, a book about selling that doesn’t shout, but quietly gives commonsense, useful advice on every page.

Groundswell” – Charlene Li and Josh Bernoff. Describes the business impact of social media technologies like blogs, social networks, forums, etc. It would be important just for the subject matter. Delightfully, it’s also very well researched, documented, and written.

Senior Leadership Teams” – Ruth Wageman, Debra Nunes, James Burruss, Richard Hackman. Illuminating a hidden corner of company dysfunction–the leadership team that can’t work together–and demonstrating the practices that can overcome it.

Brain Rules” – John Medina. A delightful, story-filled book that illuminates how the brain works, and how we can change our behaviors to be nicer to our brain and to others’.

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"Innovator’s Guide to Growth": readable, productive prescriptions for disruptive innovation

Wednesday, July 30th, 2008

I didn’t really understand Clayton Christensen’s “The Innovator’s Dilemma” when I read it many years ago. Perhaps like a lot of people employed by large companies, I suffered “innovator’s myopia.” But after experiencing disruptive products like Skype, Linux and salesforce.com it started to make more sense to me.

Christensen and his followers are still preaching the disruptive innovation gospel, and now, with “The Innovator’s Guide to Growth” I am finally getting the picture.

It’s the size and shape of a textbook, and works as one. Written by Mark Johnson, Scott Anthony and Joseph Sinfield, along with Motorola’s Elizabeth Altman, “The Innovator’s Guide” provides a rigorous introduction and a process for nurturing disruptive innovation. It guides a company through identifying opportunities, developing ideas, devising strategies, and deploying them.

There are no magic bullets presented–the core strategy, to find innovations that fundamentally reshape markets, is still difficult for market leaders to follow. Leaders’ instincts are to protect market share and “feature up” their products, precisely the wrong approaches to disrupt a market.

One tenet of disruptive innovation is to target “overshot” customers. These customers have grown disenchanted with the continual upgrades of a product and won’t pay more for new features. It occured to me that users of Microsoft Windows Vista–a huge product that just isn’t exciting anyone (and annoying many)–are just such overshot customers.

The chapter entitled “Mastering Emergent Strategies” was worth the price of the book alone. Referencing the work of Rita Gunther McGrath and alluding to managerial complexity as elaborated by Boone and Snowden in a recent HBR article, it lays out the case for an iterative approach to planning as opposed to an all-out march to a clearly-defined objective.

The authors define three critical steps for iterative planning: (1) identifying areas of uncertainty, (2) performing “smart experiments” and (3) adjusting and reflecting.

The rest of the book is similarly insightful. If you’re an innovator, or need to be one, this book should stay on your bookshelf as a valuable reference for many years.

Related posts:
Use your strategy to drive your acquisitions and vice versa
Rita Gunther McGrath

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Shop Talk Podcast #14 – Jill Konrath on selling to big companies

Tuesday, July 29th, 2008

I had a great time talking recently with Jill Konrath, author of “Selling to Big Companies.” She had a lot to say about, among other things, how some tried and true sales techniques are outmoded. Jill’s website is sellingtobigcompanies.com.

Download the podcast here (20 minutes, 27 seconds).

Segments:
0:00 Introduction
0:30 The difference between selling to big companies and to small ones

1:50 What’s changed in selling in the past decade?

7:30 On follow-up

9:10 On “always be closing”

11:25 Using web2.0 technology to help make sales

15:20 Learning from mistakes

(Theme music: “Nova” by NOMO, from their album “Ghost Rock“)
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Cradle-to-cradle: desirable but difficult

Monday, July 28th, 2008

I had been puzzling about the implications of cradle-to-cradle manufacture before my friend Sara Kaplaniak’s op-ed in our local paper yesterday, but reading it helped crystallize my opinion that, while very desirable, cradle-to-cradle requires a significant culture change among those who would be early adopters of the products.

And that’s going to slow down, perhaps by a lot, the growth of cradle-to-cradle products.

A brief definition: cradle-to-cradle is a mindset to construct goods from materials that can be completely reused or returned to the earth; i.e., there is no long-term disposal issue. This mindset has been promoted recently by the architect William McDonough.

An example of a cradle-to-cradle product is the Herman Miller’s Celle chair, which according to the manufacturer can be disassembled into components that are 99% recyclable.

The most thought-provoking piece I’ve read on the subject is “The Biosphere Rules” by Gregory Unruh in the February 2008 Harvard Business Review. Unruh writes about how businesses can be transformed by biomimicry–the imitation of nature, a view McDonough also believes in strongly. Unruh’s rules for manufacturers are:

  1. Use a parsimonious palette
  2. Cycle up–virtuously
  3. Exploit the power of platforms

#1 implies using a smaller number of materials, in manufacture, and in limiting (eliminating?) the compounding of materials. This is an issue for manufacturers–historically, they’ve started with a design and located or created materials to fulfill that design. Now they will be starting with a materials list to begin with and say “What can we make from this?”

The benefit is that the simpler materials are more easily reused, recycled or composted. And a fewer number will make the process to collect and sort them more economical.

#2 says in part that items should be made to wear out. (The limitations of #1 may help matters here–the alchemy required to create super-long-lasting materials may lead to unacceptable waste.) This is the most difficult part for me. My whole nature tells me to buy things that are long-lasting in order to consume as little as possible. And that old things have mana and should be retained. (I have three coats I love that are each more than 20 years old.)

Cradle-to-cradle says that things that wear out are OK and, as long as the manufacturers have good processes for collecting and recycling/rehabbing/refurbishing them, it’s even desirable.

I may be the only one who will have to have a culture transplant to fall in love with this concept. But if I’m not, cradle-to-cradle may take quite a while to catch on.

Related post:
Fortune Innovation Forum Day 2 (McDonough)

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The deep attraction of the locally-produced

Sunday, July 27th, 2008

While reading a review of Rob Walker’s “Buying In,” in today’s New York Times Book Review, I got to thinking about why I buy a certain type of beer.

The review points out Walker’s description of the rebirth of Pabst, which after decades of decline began to grow again, led by young people seeking an unpretentious and less heavily-advertised beer to drink. Picking up on the weak signals, Pabst marketing shrewdly capitalized on the image by embarking on a low-profile campaign focusing on small-scale sponsorships of happenings favored by their market segment.

Yesterday, I took the kids and some friends and went on a tour of the Troegs Brewery across the river in Harrisburg.

I only drink local beers–Troegs, Stoudt’s, Lancaster Brewing. And reading the book review made me ponder why this was so. Local beer is fresh, sure. Brewed in small batches. It has more taste than the mass-produced beers. But this didn’t explain it all to me. To me, the local aspect is predominant.

Was there a “deep metaphor” at work here? With apologies to the Zaltmans, authors of “Marketing Metaphoria” and coiners of the phrase “deep metaphor,” I think so. Something deep in my psyche makes me yearn for Troegs Sunshine Pils and revolt at the thought of Miller Genuine Draft.

Similarly, we get our vegetables much of the year from Spiral Path Farm, a CSA farm located about an hour from here, which we’ve visited.

At any rate, if this is so, it perhaps explains another phenomenon–when a big national bank buys a local bank, within two years a new local one springs up to take its place. Or does that only happen in my town?

Related Post:
“Marketing Metaphoria”: Deep yearnings about the products we buy

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Zuckerberg learns

Thursday, July 24th, 2008

I didn’t like much of what I read about Mark Zuckerberg, the founder of Facebook. Seemed like a bratty kid, ego on overdrive. The questions about perhaps appropriating the idea from Harvard classmates cast a shadow to me.

But I am impressed with what I’m reading about him now. Today in The New York Times, Brad Stone profiles some new Facebook integration tools, and in the article some quotes from Zuckerberg that are out of step with his old persona, to say the least.

Like this:

“We paid a lot of attention to making sure that people have complete control over what is in their feed,” he said. “We learned from last time.”

And this:


“As happy as I am with the growth of the ecosystem, there are a lot of mistakes we made,” Mr. Zuckerberg said. “I think we can all agree that we don’t want an ecosystem full of applications that are just trying to spread themselves.”

To that end, Facebook announced a series of new incentives for developers to write what it characterized as “meaningful” tools for the service. It said it would pick certain applications that meet a set of Facebook principles to be part of a new “Great Apps” program.

Others are recognizing Facebook’s progress:

Blake Commagere, the developer who created zombie and vampire games for a variety of social networks, said Facebook was simply learning as it goes, like everyone else in an unprecedented Web experiment.

“It’s been a learning process for developers and for Facebook,” he said. “They are breaking new ground, but these guys are sharp. They are going to continue to improve it.”

So, it’s a much humbler and seemingly wiser Zuckerberg. That can only bode well for the future of the platform and the company.

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Slow learner

Wednesday, July 23rd, 2008

I was talking to my old college roommate today and he was explaining the challenges of raising a teenager. “I told my daughter pretty clearly she needed to do something. I thought we had an agreement. Three days later she was doing 180 degrees different from what I asked. I said, ‘I told you to do something different and yet you’re doing this instead.’ And she said, ‘Yes, I thought about what you said, but decided that it wouldn’t work for me.’”

This reminded me of my days as a programmer. When a manager looked over my shoulder and started to micromanage, for example, saying “try this,” or “type this command now” or “don’t forget to do this.” I nodded politely, waited for him to leave and did it my own way.

The funny thing is that when I managed, I was often just like the ineffective manager who told me what code to write. In other words, I tried to work through my people, instead of letting them work. When I wrote the code, I had control. When someone else wrote the code, but worked for me, I thought I still had control. In retrospect, I treated management as an ordered rather than a complex system.

This is one of the problems with the promotion into management. The skills you need are so radically different that when pressed you revert back to what you know. Which is doing it yourself (or trying to do it yourself via another person). Can’t be done. Staffers are not marionettes.

It took me years to realize the lack of control I had, and to trust the people more. But I’m not sure I ever learned that lesson completely.

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What in hell do stories have to do with innovation?

Tuesday, July 22nd, 2008

Regular readers may be tiring of the constant barrage of story-related posts, or at minimum be trying to figure out how they relate to the title of this blog. Here are some words that I hope tie it together.

More and more products are launched and evolve in an iterative fashion. Version 1 does this, version 2 does that, and version 3 finally hits the mark and becomes the standard (exhibit A: Windows). Those iteration windows are becoming tighter, so good information as a basis of planning product changes is invaluable. Google in particular has turned this approach into an art form.

There are more and more ways to get feedback directly from users. Forums, call centers, social networks, Twitter, etc., etc., allow users to communicate their likes and dislikes about a product.

Now, to storytelling. Most business applications of storytelling focus on communicating outward–developing a story that helps communicate the essence or benefits of your product or company. Steve Denning, in his recent book “The Secret Language of Leadership” calls these indirect stories–stories that inspire stories in the mind of the reader or listener. Indirect stories are necessarily incomplete–they are not meant to immerse the listener in an experience (like, say, Harry Potter does). They are meant to create empathy and consensus.

What I’m talking about (as are Shawn Callahan & Mark Schenck of Anecdote, Dave Snowden of Cognitive Edge and others) is inverting that model.

In addition to crafting stories and sending them out toward customers, staff, etc., what if we listen to the indirect stories coming from them? They are also necessarily incomplete–mere anecdotes–but if you gather a few dozen, a few hundred, or a few thousand, common themes and threads will become evident. To invert Denning’s language, there’s the possibility of inspiring stories in the mind of the company.

These stories might say things like:

  • People find our product really hard to use.
  • Feature X of our product is proving more valuable than we expected.
  • A group of people are using our product in an interesting way that we didn’t anticipate.

As a product manager, the above stories are very important to me. They help orient me toward things I should do to improve product packaging, add or delete features, alter its marketing message or improve its customer service or technical support. Also, the user stories are pre-hypothesis, meaning that they are free of bias that can come via hypothesis-based approaches such as surveys. They are not adulterated by groupthink, as can happen with focus groups. They are the voice of the customer.

None of the individual anecdotes may send clear messages about where innovation is working and where it isn’t. But the accrual of them can do so.

Companies don’t use this resource to improve innovation. They should.

And that’s what I’m talking about.

(For a powerful example of the accrual of “indirect” stories to create a compelling, nuanced, overall story, please refer to this earlier post on Haruki Murakami’s “Underground.”)

Related Post:
Stories that people tell about products are invaluable

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Best CD of the half-year

Monday, July 21st, 2008

My favorite album, by far, of 2008 is Nomo’s Ghost Rock. A concoction of dance-funk, electronica and horns, it’s strong from start to finish–from “Brainwave,” where the lead instrument is a bleep-bleeping analog synthesizer and the other instruments provide weird backup, to “Nova,” a plinky dance track. And in between, the title track and “All The Stars” are standouts.

Great rhythms, improvisation, funky beats that will make you move your body. They’re all here. But don’t look for vocals, because there aren’t any.

The band, nine strong, is from Ann Arbor, Michigan. Their earlier albums, “Nomo” and “New Tones” are also excellent. I had a chance to see some of their live show when they were in Philadelphia last week, and they absolutely rocked.

The best way to check out some of their music and see tour dates is to go to their Myspace page.

From The Mistake Bank: a comic mistake story (it’s funny, too)

Monday, July 21st, 2008
Please click the picture to view in a larger size.

There are lots of ways to tell a story. One perhaps underappreciated way is via comics–a narrative combination of words and drawings.

Comics artist Josh Neufeld contributed to the Mistake Bank the great story pictured above, “Past Perfect Progressive in Prague.” Perhaps you’ll identify with the awkwardness of adapting to a new place and culture.

Josh’s most recent work is the comic book “A.D.”–taking on perhaps the greatest mistake of our time, Hurricane Katrina and its aftermath. “A.D.” follows the stories of six actual New Orleans residents from different neighborhoods and walks of life, through the calamity and thereafter. A powerful narrative containing real dialogue and settings, with hyperlinks to supporting documentation, it’s truly an epic work. “A.D.” is accessible on the SMITH Magazine site, and will be forthcoming as a printed book in summer 2009, the fourth anniversary of the hurricane.

Related posts:
“Understanding Comics”

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