Archive for January, 2009

One of the world’s most dangerous jobs: change agent

Friday, January 30th, 2009

This article from Booz & Co’s “Strategy and Business” will send a chill up your spine. The article, “Stand by Your Change Agent,” by Stratford Sherman and Marisa Faccio, describes the results of a survey of 84 change initiatives between 1995 and 2005.

The initiatives themselves were successful, in the main: 85% met or exceeded the goals set out for them.

The leaders, though, didn’t fare as well. Sherman and Faccio write: “Some 70% of the executives who led these major transformations went unrewarded, or were sidelined, fired, or spurred to leave.”

The authors go on to describe types of companies at different levels of performance and how the change agent role is very risky in all but the very strongest companies. My take: large-scale changes disrupt the organization, stir up resistance, much of which gets focused on the change leader. If the change fails, the consequences are self-evident. If it succeeds, however, the pain endured in achieving it takes a toll on the person running the initiative.

If you’re considering taking this role on, do it for the experience, the resume fodder, and the feeling of accomplishment if you’re successful. Don’t do it, however, for the recognition of your peers and leaders. Chances are, that won’t be coming your way.

Business Book Hall of Fame: “War & Peace”

Wednesday, January 28th, 2009

Heard of it?

Read it? Probably not. It’s the dictionary example of a long book. And it is long. Based on some indirect prodding from Dave Snowden and Jochum Stienstra, I finally picked it up, determined to read the whole thing, in November 2008. It is now the end of January 2009, and that’ll tell you what a commitment is required to finish it. (The pile of unread books by my desk is now immense.) I can also heartily recommend the new English translation by Pevear and Volokhonsky; the writing was easy to understand and felt modern and fresh.

Was it worth nearly three months of effort? Hell, yes. “War & Peace” is an amazing work for our time (or any time). There are great love stories and domestic dramas in the book as well, but for the purposes of this post I’m going to focus on how the book tackles leadership, strategy, complexity and chance.

Perhaps most amazing is how Tolstoy shoots down the historian’s view of the power of individuals to shape history. Here he is explaining Napoleon’s rise to power:

Chance, millions of chances, give him power, and all people, as if by arrangement, contribute to the strengthening of that power. Chance makes the characters of the then rulers of France submissive to him; chance makes the character of Paul I, who recognizes his power; chance makes a conspiracy against him which not only does not harm him, but strengthens his power. Chance sends d’Enghien into his hands and accidentally forces him to kill him, thereby convincing the mob more forcefully than by any other means that he has the right, because he has the power. Chance makes it so that he strains all his forces towards an expedition to England, which obviously would have destroyed him, and never carries out his intention, but instead unexpectedly runs into Mack and his Austrians, who surrender without a battle. Chance and genius give him the victory at Austerlitz, and by chance all people, not only the French, but all of Europe as well, with the exception of England, which does not participate in the events about to take place, all people, despite their former horror and loathing for his crimes, now recognize his power, the title he has given himself, and his ideal of greatness and glory, which to all of them seems something beautiful and reasonable. (pp 1134-1135)

Of course, when the chances turn against him, starting with the invasion of Russia, he quickly becomes a fool and a failure. Was he a genius, or an idiot? Neither, of course. He was participant in a sequence of events over which he had little control, according to Tolstoy. This is a humbling lesson for leaders of all types, who operate in the complex domain–whether that be warfare, business or politics. Events will define you far more than you define yourself. Your actions, to a large extent, will be overwhelmed by forces outside of your control.

Does this then mean that generalship doesn’t matter? Tolstoy would say yes. Throughout the book he writes that the most carefully-created war plans go off the rails immediately after the battle begins, while a single junior officer, deciding on his own to attack the French flank, can have an immense impact on winning or losing. And that the passions of the soldiers have much more effect on the outcome than the best leadership and training.

In my times working at very large companies, this seemed true to me. The accomplishments of the company were the agglomeration of thousands of small efforts on behalf of the rank and file. [You could argue that company failures--Enron, AIG, for example--also work this way.] First-line managers had a big impact. Directors, somewhat. But the plans and strategies of the C-level executives, sitting in the God Pod, at the end of the day, didn’t mean much at all.

Customers are talking: the Blackberry Storm/Twitter project

Monday, January 26th, 2009

Like a lot of people, I’ve been trying to get a handle on what Twitter means for businesses. My professional interest is in finding unsolicited customer stories and making sense of them–wherever they are. In this, Twitter has a lot of promise. It’s easy to use, brief and spontaneous. So are customers using this forum to talk about products? I decided to find out.

My test case was the Blackberry Storm. It received an absolutely terrible review from David Pogue, the New York Times’ consumer-electronics columnist. It also had very good early sales numbers–500,000 units the first month of its release, according to the Wall Street Journal. The combination of these made it an irresistible subject to study: would the Twittersphere be flooded with posts from enraged buyers?

The project was made more interesting today, when the Wall Street Journal published an article entitled, “Bumpy Start for Blackberry Storm,” which referred to complaints of early Storm users (but not Pogue’s review), including this vibrant quote: “I found myself wanting to throw it in the ocean due to my frustration with its overall usability.” The article also referred to a release of firmware soon after launch intended to address some of the early complaints, particularly response time.

I used Twitter Search to look for messages containing “Blackberry Storm” and a happy or sad emoticon (there’s a button on the advanced search page that enables you to restrict searches this way). I looked at 88 English-language tweets going back to December 27. Here’s what I found:

The biggest surprise to me was: where were the complaints from users? While half the Tweets were from Storm users, as opposed to people commenting on the Storm, or thinking about it, only 4 out of 44 (9%) of the users’ tweets were negative, while 23 (52%) were positive.

(If you want to check out the searches I created for this project, they are here: happy search, sad search. Twitter Search has been acting funny the past few days–I’m only able to get one page of recent results, and can’t search farther back. I used an RSS feed of the search over a period of weeks to gather the entire list of 88,)

From a customers are talking perspective, this isn’t a terrible outcome at all for the Storm. Whether the firmware change made that much difference, or the Blackberry brand loyalists are immune to hardware glitches, or simply that devices like this aren’t perfect and users expect that–they are not saying this is a terrible device. Many are saying that they like it. If I’m Blackberry and Verizon, I’m not discouraged by the Storm’s initial reception.

By the way, the WSJ has already started to backtrack. On the web site, the article is now entitled, “Blackberry Storm Is Off To A Bit of a Bumpy Start.”

(Disclosure, I am a Verizon customer and a Blackberry 8830 user. If you think I am a shill for Verizon, please don’t make up your mind until you read this post, or this one.)

“Underground” as an example of narrative study

Monday, January 26th, 2009


Over the last couple of years, I’ve gotten more involved with collecting and sorting through multiple narratives to help businesses understand and deal with difficult problems. (Difficult, meaning the normal tools such as numerical analysis, process mapping, etc., are insufficient to understanding the issue.) This has become a cornerstone of my professional life, and it’s been a rewarding and at times thrilling undertaking.

Shawn Callahan at Anecdote introduced me to this area, and then I learned about the work of Dave Snowden at Cognitive Edge. I met Cynthia Kurtz, who was an early collaborator with Dave Snowden, and have learned a lot from her as well. To the extent that the work I do is valuable to my clients, these folks deserve much credit.

Yet one of the best teachers I have had here (and I’m still a rank beginner) is the book “Underground” by Haruki Murakami. He’s one of my favorite novelists, and this is one of his few nonfiction books. I read it years ago, long before I’d learned the terms “story listening,” “mass narrative capture,” or “sensemaking.” But when I began learning from Shawn, Dave, Cynthia and others, it immediately came to mind.

In “Underground” Murakami seeks to understand and to help readers understand one of the most terrifying episodes in recent history–the sarin gas attack on the Tokyo subway system perpetrated by members of the Aum Shinrikyo movement in 1995.

Except for a brief author’s preface, the book consists of the stories of survivors of the attack. Murakami interviewed everyone he could find from the list of victims, and presented their stories, unadorned, one after the other. He then interviewed a number of members of Aum Shinrikyo, and presented their stories, as well (a decision that is aligned with goals of narrative learning to take in multiple perspectives of a situation).

The result is a chilling, relentless book, that nonetheless does what no news report, CNN story or even historical chronicle could do–shows the impact of the attack and its aftermath on the real people who were caught up in it; and illuminates the puzzling (to outsiders) behavior of the Aum Shinrikyo members. It’s a fully-realized, three-dimensional picture of a disaster, and goes a long way to explaining the unexplainable. In this way it’s like an extended version of John Hersey’s great “Hiroshima,” though shorn of the authorial voice.

When you read this book, the stories layer and layer; you see the event from a deeper and deeper perspective, till you almost feel like you’re there, inside the attack, experiencing it with the victims. And then you read the Aum Shinrikyo stories, and somehow you see that their world has its own internal logic. You finish the book, and you’re exhausted, but you know deeply about this terrible event, how it happened and what it did to people. Your brain is working hard throughout–you’re sensemaking.

If you’re interested in narrative sensemaking, or you just want to learn the full story of a human disaster, you must read “Underground.”

(Here’s a much earlier reference to “Underground” and the subject of story-listening.)

Customers are talking: the empathetic company

Saturday, January 24th, 2009

The New York Times today features an interview with Dev Patnaik, a consultant specializing in helping companies to develop growth strategies and the author of a new book, “Wired to Care: How Companies Prosper When They Create Widespread Empathy,” which claims that a missing ingredient in recipes for corporate success is the human train of empathy:

[Patnaik] argues in the book that it is not the lack of innovation that hampers companies, but the “empathy gap” — the chasm between employees in organizations and the people that they serve. Companies, he said, “do a good job of stamping empathy out of employees, then are surprised when employees make poor decisions or try to sell things that people don’t need.”

In a way this reflects the “bringing the outside in” concept from Kotter’s “A Sense of Urgency.” Patnaik gives the example of the auto managers who never experienced the car business from a customer’s point of view–buying a car, financing it, servicing it, etc.–and thereby lost touch with the consumer and the marketplace.

Part of this “empathy gap” is the distancing of management from the customer and the customer experience–where dashboards and status reports have crowded out anecdotal information and real human experience. This is what the “customers are talking” initiative is attempting to do–to connect managers and leaders with the ground-level experience of their customers and by so doing to equip them to make better decisions about their products and services.

Here’s an interesting observation from Patnaik about one of the big problems with marketing:

The companies are trying to get the customers to identify with their product rather than getting their own employees to identify with their customers.

In other words, companies are trying to make up for their lack of customer insight with messaging. These marketers believe that if they create a powerful, resonant message, it will draw people to their products. But if the product is not created with a deep sense of the customer in mind, the message won’t work.

I’ll have to pick up a copy of “Wired to Care” and see what else the book has to say about this important subject.

Related posts:
A Competitive Advantage: Employees who spend most of their time talking to customers
Time to start listening to front-line employees

3rd Annual Top 5 HBR Breakthrough ideas

Friday, January 23rd, 2009

… in which we winnow down Harvard Business Review’s yearly list of 20 breakthrough ideas to a manageable 5.

1. The Business of Biomimicry, by Janine M. Benyus and Gunter A.M. Pauli. Many of the most important new innovations we’ll see in 2009 and beyond will involve borrowing and inspiration from nature’s processes.

2. Institutional Memory Goes Digital, by Gurdeep Singh Pall and Rita Gunther McGrath. What will happen when every word, gesture, etc., of business interactions are recorded and stored? [I'm most interested in the subset of this involving intentionally captured and signified narrative information for knowledge sharing. The Mistake Bank is an early stab at this idea.]

3. How Social Networks Work Best, by Alex Pentland. New research shows that collaborations work best when social networks are used differently for discovery and integration activities.

4. The Ikea Factor, by Michael I. Norton. Having a hand in building a product leads to a stronger emotional connection with it. [Does this say anything about self-service gas stations and supermarkets?]

5. Forget Citibank, Borrow From Bob, by John Sviokla, and Consumer Safety For Consumer Credit, by Elizabeth Warren and Amelia Tyagi. It’s inevitable that the fallout of our financial crisis will be a radical restructuring and reinvention of the financial industry. And it’s about time.

Related posts:
2008 Top 5 Breakthrough Ideas
2007 Top 5 Breakthrough Ideas

Customers are talking: The Eureka Button

Wednesday, January 21st, 2009


I was talking to Cynthia Kurtz once and she mentioned, “If I were developing a piece of software I would always want to put a Eureka Button on every page.”

A Eureka button is this: if while using the system a user just figured something out that others might benefit from, he/she would click the button and be presented with a page where she could enter:

What Happened?

Where does this apply?

When should people read this story?

This input and information about where they were in the system (page & data) would be uploaded to a database. The database can be searched for patterns or browsed periodically, looking for bugs or unexpected uses of the system.

It’s easiest for me to think about the Eureka Button in the context of enterprise software. Having worked a lot with CRM systems for telephony, I know that these systems have hundreds of user pages, with a virtually infinite number of paths through the system.

In these environments, product managers may know in theory how people should use the system. But their knowledge is quickly overtaken by experienced users, who learn how to apply the system to their jobs, often finding tricks or shortcuts to make the system work better for them. (”Eureka! I just figured out that if I dummy out some data items, I can capture information & save information from a prospect before they decide to make a product purchase. If they call back, I can look them up by their phone # and I don’t have to start all over again.”)

In this situation, a Eureka Button has great value for the product manager and the users. Product managers can learn about difficulties users have and how they overcome them. The tricks can be incorporated into the product, or deficiencies addressed. Users can learn from each other–perhaps Eureka Button entries can be blogged automatically and read by other users, dispersing tips and tricks and encouraging others to share their stories.

I can’t even begin to catalog how a Eureka Button could benefit consumer sites, where (especially recent) products follow an emergent, iterative development approach and patterns of usage can affect the entire purpose of the product (e.g., Twitter). There are people much better suited than I to discuss some of these implications. If you’re one of them, please let us know in the comments how the Eureka button could be used with these products.

(In searching for prior references to a “Eureka Button,” I discovered this NY Times article from 2004. The article mentions that “‘It’s amazing how many people there are who find pleasure in sharing the little discoveries they make.’” The article focuses on undocumented features in PC software and in consumer electronics. The article references a site that publishes user stories of hidden Windows features.)

Customers are talking: using reverse logistics to improve products

Tuesday, January 20th, 2009

As part of our regular Tuesday series on finding and acting on customer use stories, let’s talk about reverse logistics. This is the process by which retailers and manufacturers deal with customer returns.

This article (hat tip Colin Shaw) discusses how companies can examine and make changes to their reverse logistics procedures to reduce costs and streamline the process. This is good advice as far as it goes.

But like many “customers are talking” topics, companies need to take an additional step in order to really utilize the reverse logistics process to its utmost.

Each customer return is a story. Capturing and collecting those stories, and regularly examining them for patterns, can yield important information about how the product is designed, communicated and supported. For example, consumer electronics are notorious for their returns frequency, and the reason for these returns often is that the product is difficult to use or its documentation is poorly written or inadequate (multi-language manuals introduce another set of obstacles for customers).

A company can work with its retailers, as part of the overall design of the reverse logistics process, to capture important information about why the product was returned. Ideally, the verbatim customer story is captured–which is easy to do with online returns.

The collection, of course, is the simple part of the equation. The more complex task is the sensemaking of the numerous narratives captured. This sensemaking, more of a collaborative thinking process than an analytical one, can be accomplished with training and skilled mentoring.

The potential payoff is large: marketing managers who are made of aware of why returns happen can make (often simple) changes to packaging, design, channel strategy or documentation to improve initial customer satisfaction. Not only does this reduce returns, it also increases the likelihood that more people buy the product in the first place.

A friend owns a company that manages reverse logistics for name-brand consumer electronics manufacturers. I asked him if he knew why a certain product was often returned and he said, “Yes, always.” I asked him if he had a way of letting the marketing folks at his client know these reasons. And he shook his head.

Given that many companies are outsourcing their reverse logistics operations to third parties, they need to take care that they keep the channel of communication open to learn why items are returned, and what can be changed about the product, its support documentation or its point of sale in order to make more initial purchases successful ones.

New York Times on mistakes in the workplace

Sunday, January 18th, 2009

Today’s Times business section covered one of my favorite subjects today, as part of its “Career Couch” series: mistakes in the workplace. Even better, they interviewed an important researcher on this subject: Amy Edmondson of Harvard Business School (discussed many times on this blog, including here and here).

Here’s my favorite quote from the article:


In any job that requires continuing thought and judgment, we need to be “aware of the huge potential of things to go wrong,” Professor Edmondson said, because “we all can handle only so much cognitively at a time.”

The article is excellent in recommending courses of action to report and recover from a mistake. I wish they had spent more time discussing how to learn from one’s mistakes. Sometimes errors are one-off oversights, other times they reflect weaknesses we need to work on (at still other times they are serendipitous events, but that’s another story). How does one tell the difference?

Here’s a personal example. I noticed that I lost track of several conference calls over a period of months. This was unthinkable to me, since I’d always prided myself on discipline and organization :). But the pattern was worrisome. In my business, if you miss a client conference call, or worse, two or three, you may have an ex-client on your hands. What I realized was, I was getting busier, and therefore my mind was not able to manage all the data I was asking it to. This realization drew me to David Allen’s book “Getting Things Done” and adopting many of its suggestions.

To learn most from your mistakes, I’d suggest this approach. When an “unplanned event” happens, and after you do all the sensible things recommended in the Times article, jot yourself a note. What happened? What did you expect, and how did the outcome differ from your expectations? Put it in a file.

At the end of the year, or at another time when you have space and a clear mind to reflect, pull out the file. Review the notes. See if patterns emerge. Are there variations of errors happening over and over? Why? Can you make any changes to try to reduce their occurrence in the future?

Sometimes crowds aren’t wise

Saturday, January 17th, 2009

I like Surowiecki’s book, a lot, and I have experienced many instances where the collective judgment of a group was far better than even an informed individual. But the “wisdom of crowds” catchphrase is dangerous–oftentimes crowds are not wise at all.

We are experiencing right now an era in which crowds are really dumb. I’m referring to the financial markets and the related economic recession. The financial markets and news affecting the financial markets have merged into a massive echo chamber, wherein bad news begets pessimism which keeps prices down which begets another cycle of bad news.

We’ve seen this in reverse, of course. Do you remember 1998-1999, during which time everyone was watching CNBC or checking Yahoo Finance all day long, in real time assessing the value of their stock portfolios? Oversubscribed IPOs begat good news, which kept prices high, which begat more buying, etc., until it all came crashing down.

I thought it was clear to everyone that market groupthink, which afflicts us in good times and bad, obscured the true value of securities, and therefore paying close attention to news items in order to make sense of the markets and our economy was, at best, a waste of time.

But no. Felix Salmon, in his Portfolio Market Movers blog, points to a Financial Times article introducing us to a service from Reuters that collects news items and alerts traders when news trends indicate potential market movements.

In other words, lean into the echo chamber, and listen real hard for signals you can use to make decisions. Um, it’s only January, but I will bet there’s not a stupider product idea introduced for the rest of 2009.