Archive for the ‘Uncategorized’ Category

Randy Nelson of Pixar: Collaboration is like improv theater

Tuesday, August 10th, 2010

I learned of this video of Randy Nelson, dean of Pixar University, from Garr Reynolds’ Presentation Zen blog. Garr points out many interesting facets of Randy’s presentation, but I was struck by the initial message in the talk, and I’ve been thinking about it a lot the past few days.

Randy says this (all in the first 1:30 of the video):

Two core principles of improv have always guided us. The first is: Accept every offer. If an improviser says to you, “It’s raining a lot in here today,” you don’t say, “Raining in here?” You say, “That’s why they gave us umbrellas.” It’s an offer. You don’t know where it’s going to go, but the guarantee you have: if you don’t accept that offer, it’s going nowhere. You’ve got a sure thing on the one hand: dead end. Or you have a possibility on the other.

The other principle is: make your partner look good. What a great thing. So you know on a team that anything anybody says to you, you’re going to get a chance to “plus” that, you’re going to get a chance to have that be on the table. And they’re going to try to make you look good, not make you look bad.

At Pixar, what we mean by “plussing” is this. You take a piece of work, you take something you’re working on collaboratively, and when it’s given to you, you don’t judge it. You don’t go, “Oooh, this is pretty good; this is what I’m going to do to make it better.” Or, “This isn’t so good, this is what I’m going to do to fix it.” You say: “Here is where I’m starting. What can I do with this? …How do I accept the offer and make my partner look good?”

This made me think of how I learned to collaborate, starting in engineering school and continuing as a programmer and software designer. Collaboration in that environment meant, largely, fighting over ideas. This is how we should design a data structure. We should design a home screen this way. It was a combination of thinking and persuasion. Whoever had a good idea and could persuade the others in the group of its merits, would win the argument.

In my mind, these weren’t destructive arguments. They were, in fact, thrilling. You won some, you lost some, and the results were often really cool.

But when I moved into management this method didn’t work so well. It doesn’t help quiet people contribute to ideas. It’s a peer method and doesn’t work well in a hierarchy. It can divide people. It can be intimidating.

So I’ve been thinking about how to apply the improv model to more situations. When someone comes to me with an idea, how can I, rather than dismissing it initially (which I am prone to do), “accept the offer”? And how can I use my capabilities, not to critique the idea, but instead to make my partner look good?

Silicon Pasture update: Treff’s 10 reasons

Friday, July 23rd, 2010

Treff LaPlante of WorkXpress, a Carlisle-based software and IT services company, knows what it is to start a high-tech business in Central Pennsylvania. He’s written a guest post for the Central Pennsylvania Business Journal’s Gadget Cube (the author of which, Andréa Maria Cecil, is also a great friend to the region’s entrepreneurs) listing “10 Great Reasons To Start a Software Company in Central PA.”

If you’re local to our area, and you’ve got an idea for a great company or product, read Treff’s post for some helpful tips. And join the New Tech Meetup of Central PA to get to know some fellow travelers.

[Silicon Pasture is our partially tongue-in-cheek term to describe the tech startup environment in the Harrisburg-Lancaster-York, PA, area, known more for candy, snack foods and dairy products than startups. But perhaps that will change. You can read more Silicon Pasture posts here.]

“Delivering Happiness” delivers

Wednesday, June 2nd, 2010

delivering happinessThere are many definitions for a great book, but here is one: you’re burned out on business books. They’ve become a slog to get through, the unread pile has grown, and you’ve gotten into the habit of reading a chapter or two and deciding whether they’re worth sticking with (sorry, “Referral Engine“). You pack a copy of “Delivering Happiness” by Zappos CEO Tony Hsieh and take it with you over Memorial Day weekend, planning to give it a shot but with no expectation that you will do so.

And then you finish it in two days.

“Delivering Happiness” is not a typical business book by any stretch of the imagination. Part autobiography, part celebration of the Zappos culture, part suspense yarn. Will Tony have to sell his loft apartment so Zappos can stay in business? Will the Wells Fargo line of credit come through? We know the ultimate answer, but the journey is still fun.

Hsieh’s story can also be read several different ways. How was he able to build and sell two different companies for 9- or 10-figure sums? Is he simply smart, driven and lucky? Or does he somehow understand and see things at a level deeper than the rest of us?

A strength of the book is Hsieh’s willingness to acknowledge the contributions of others to the success of the companies he has worked for. He gives a great deal of credit to Sanjay, his partner on his first venture, LinkExchange, and in the Zappos sections gives ample airtime to company CFO Alfred and head merchandiser Fred (last names? I don’t remember. Hsieh calls them by their first names exclusively). Stories from Zappos employees are used to illustrate the company core values. So, unlike other CEO autobiographies, you get the clear sense from “Delivering Happiness” that Hsieh’s companies were not one-man shows.

If you’re looking for “10 ways to improve your marketing” or “5 ways to optimize your company’s capital structure,” look for another book. But if you would like an entertaining summer read full of small insights that can help any business, pick up “Delivering Happiness.”

Time to retire shareholder value maximization strategies. How about focusing on customers instead?

Thursday, February 11th, 2010

In the current Harvard Business Review, Rotman school dean Roger Martin (author of “The Opposable Mind” and “The Design of Business,” both books endorsed by this blog) argues that it’s time for a new overarching goal for the firm (”The Age of Customer Capitalism“). Martin argues that since the 1980s companies have been focused on the wrong objective: shareholder value. He states that shareholders are frequently short-term holders and overwhelmingly indirect (i.e., you buy a share of a mutual fund that invests a fraction of that share in a particular firm). Therefore, the side effects of shareholder maximization strategies are short-term thinking and lack of concern for anything not directly financially-related.

Reading Martin’s piece brought to mind the chill that went through me years ago when I read Michael Jensen’s (the godfather of shareholder maximization) 1980s HBR article “The Eclipse of the Public Corporation.” In this piece Jensen argued vociferously that older, low-debt versions of company capitalization were antiquated, and the companies of the future would be highly leveraged in order to tightly tie owners to the performance of their companies.

We see where that got us. Perhaps there were others who also instigated the era of private equity, but I first and foremost blame Jensen. He got what he wished for and as a result saddled the rest of us with an unmitigated disaster – an economy teeming with overleveraged investments – which looked great as long as the economy kept growing, but which changed into albatrosses around our collective neck when the (inevitable?) downturn came.

Now, says Martin, it’s time to redefine the relationship between a company and its stakeholders. Shareholders are one, and not the primary, audience for company strategy. Customers come first.

Well, hallelujah!

[Martin has an interesting companion piece to this on the HBR website, "What We All Lost When Business Lost Respect." ]

Another thing on customer service vs. network at wireless companies

Friday, August 7th, 2009

This was a million years ago in tech terms, but during the mid 1990’s my friend Amy told me that she had given up AT&T long distance for Working Assets, a reseller. Why? I asked her. Cheaper? Its social mission?

Amy told me this: “Working Assets was nice to me on the phone.”

Related post:
Wireless companies are no longer in the network business

The “Values Proposition”

Tuesday, March 31st, 2009

The term “value proposition” has been in vogue in business-to-business sales for twenty years or more. In short, it means that a product for sale must, in essence, create more money (in increased revenue or reduced costs) that it costs to purchase. “If you buy my widget for $x, you’ll get $5x back over the next 10 years,” or something like that.

The value proposition is a very logical concept. That is its beauty and its limitation.

While many companies are aware of their value proposition to customers, few if any know their “values proposition”: the collection of things about the company and its products & services that customers value (along with the things they don’t value or which customers see as negative).

The values proposition is the underpinning of the customer reference. When companies are asked “why would you/wouldn’t you recommend a company or product?” they respond with answers informed by deep, emotional reasons like “they save me time,” “they make me smarter,” “they are available whenever I need help.” If you have happy customers, you have a values proposition too. Do you know what it is?

We’ve helped companies define and understand their “values proposition.” Contact us at inquiry@caddellinsightgroup.com if you’d like some help finding out yours.

The salesperson’s point of leverage

Monday, March 9th, 2009

It seems like the deck is stacked against salespeople these days. With budgets as tight as they can get, the few clients who need to make purchases have a number of suppliers to choose from. All the power rests with them, right?

Not exactly.

The same budget-tightening that has cancelled/deferred valuable projects has also limited companies’ peripheral vision. They send many fewer people to industry conferences. Managers and executives turn their focus inward, to manage the fallout of job cuts, pay cuts and benefits cuts.

Executives, as a result, are losing visibility into customer needs, market trends, and competitive strategies. At a recent client meeting, after their team had done a great job diagnosing the impediments to purchasing from patterns in their sales calls, the VP of Marketing asked me what I thought. I demurred: “You guys are the experts in your business. You’ve done a great job figuring it out.”

He said, “No. You are the expert. You are the proxy for the customer. We have the inside-out perspective, and that’s important. But you have a sense of the outside-in perspective–what the customer is feeling–without being burdened by our processes and culture. So, what do you think?”

And in here is the great opportunity for salespeople. They can provide executives the outside-in view of their companies. Salespeople can immerse themselves in the industry, focusing on what the end-customers (their prospects’ customers) need and expect. They can provide that insight to the prospect and also ensure that proposed solutions address those needs and expectations.

Challenging, yes. But doable. And perhaps even the realization that there are valuable, proactive things you can do right now can help you get to work and make that next phone call. Which just might lead to the next deal.

(Photo from jjorgen2 via stock.xchng)

Related post:
Why Are Companies So Inwardly Focused?

In praise (kind of) of bankruptcy

Monday, March 2nd, 2009

The stigma of bankruptcy has colored the debate about whether and how to bail out the US automakers. (A friend recently pointed out an irony–”if we have to choose which company to bail out, it probably should be the one that doesn’t want to be bailed out, Ford.”)

In today’s Wall Street Journal, a Harvard Law School professor, Mark Roe, takes up the question, in the op-ed “Would A GM Bankruptcy Crash Its Suppliers?” And he points out that there are several pieces of the bankruptcy code that are favorable to suppliers and might allow them to be better off than they are in the current situation:

Courts know that bankrupt companies need to keep getting supplies, inventory and parts for manufacturing to be viable. Hence, the bankruptcy code and the bankruptcy courts put payments for new supplies at the top of the queue, even ahead of most old lenders. Send in fresh supplies, and the courts have the bankrupt company pay for them, even while prebankruptcy creditors cool their heels.

When that is not enough, courts can do more. Critical vendors can have their prebankruptcy invoices paid if that’s what’s necessary to keep the supply conduits fluid. A bankruptcy judge has to approve these kinds of payments — they’re not automatic — but the approvals are regular and quick, sometimes made on the first day of bankruptcy.

My experience backs this up. I managed the customer base for a company who counted among its biggest customers Worldcom and two divisions of Adelphia, all of whom declared Chapter 11 in the early 2000’s. (We got “critical vendor” status at Adelphia.) While the process was painful, and required a lot of careful management on our part, we were paid during the bankruptcy, and even got back (eventually) most of the receivables that were outstanding at the time the companies declared. Moreover, they were still customers years later, by the time I left that company.

I would underline Roe’s point that a supplier to a Chapter 11 company at least has knowledge that they are at the front of the line to be paid for services provided under Chapter 11, that the company is bound to pay timely, and finally that there is recourse through the bankruptcy court for disputes.

It’s time to look at the Chapter 11 option clearly, instead of stigmatizing it as “broke,” “insolvent” or “destitute.” Because the current situation, of continually pouring money into the companies in exchange for half-measures at restructuring, isn’t doing the suppliers, the company, or the country any good.

Customers are talking

Friday, February 27th, 2009

You may have noticed that the title of this blog has changed. After nearly three years, “Shop Talk: Innovation, Marketing and Alliances” has been retired. (Actually, it lives on in the incarnation of this blog that appears at Pennlive.com.)

I’ve begun to focus my professional activities around helping companies listen to, make sense of, and act on customer stories–that is, narratives offered by or involving customers, rather than survey data, eye movements, brain scans, or other measurement approaches. I’m calling this focus “Customers Are Talking”–hence, the new name of the blog.

At the beginning of the year, I set a goal to write one “Customers Are Talking” post per week. That has grown to 2-3 posts, and so now it’s time to make the switch.

While the content may not range as widely as “Shop Talk”’s did, I still retain the right to digress as necessary. Such is the privilege of self-publishing. And the Shop Talk name will live on in our occasional podcast. (New edition to premiere next week.)

Please leave your reactions, dissent, kudos, etc., in the comments.

Customers are talking: is a customer-service dialogue a story?

Tuesday, February 10th, 2009

Some of my work recently has been applying narrative-sensemaking techniques to customer service dialogues (typically recorded phone calls), which is a fancy way of saying helping companies find patterns in what customers are saying about their products and services, and to use these patterns to drive changes that will help them sell more products and/or make their existing customers more satisfied.

This is a little different from the more traditional approach of eliciting stories via interviews, anecdote circles or web forms. In those circumstances, carefully-crafted questions help generate stories (”this happened, then this, and then this”). Customer-service calls are not elicited–they are spontaneous expressions–and don’t follow the story format. They are simply two people talking.

So a question is, I guess, can you get useful stories out of mere dialogue?

In thinking about this question, I’ve been reflecting on the novels of William Gaddis, an American writer who published only a handful of books from the 1950’s to the 1990’s. I’ve read two of them, “JR” and “A Frolic of His Own,” and both have barely any exposition at all. 90+% of the text is dialogue, barely puncutated, overlapping, and often confusing.

“JR” is a very forward-looking book about a junior-high-school student who speculates his way into a multi-million dollar paper fortune. Given that it takes place in the mid-70’s, JR does his trading via the payphone in the school hallway. Today, he’d be on TD Ameritrade.

“A Frolic of His Own,” written in the 1990’s, takes issue with the (again very present-day) issues of litigiousness and intellectual property. In addition to dialogue, hilariously-deadpan legal briefs help move the story along.

Reading Gaddis’ books is a lot like listening to those customer service calls. A bit disorienting or hard to understand, often touching, sometimes funny. Always humanizing. And always stories.