Posts Tagged ‘Harvard Business Review’

Great blog debates – Toyota edition

Friday, March 12th, 2010

I was really disturbed last week to read in HBR.org Jeffrey Liker’s otherworldly appraisal of the Toyota situation (”The Wrong Lessons From Toyota – And the Truth“. Reading more like a paid advertisement than a blog post, Liker, the author of “The Toyota Way,” minimized the complaints of Toyota customers, wrote that 2 million recalls actually represented only 10 instances of problems, and, in general, made a reader feel Liker was from outer space, rather than the University of Michigan.

Thankfully, a few days later, also in HBR.org, Robert Coles eviscerated Liker’s account, point by point (”No Big Quality Problems at Toyota?“.

Finally, yesterday HBR.org published a post by Joel Kurtzman, a consultant who had worked with Toyota in the 1970s, as it was still establishing its North American business. In “Toyota’s Problems Start At The Top,” Kurtzman does not take on Liker’s post directly, but instead contrasts Toyota’s leadership today with what he knew from their earlier days.

This has been fascinating. Blogging has brought a spirited debate about an important business subject out into the open. If Liker’s post had instead been a New York Times op-ed, any response would have been a heavily condensed letter to the editor, not something of equal prominence. It certainly wouldn’t have spawned dozens of public comments. And by sharing multiple viewpoints of experts with varying experiences and specialties, HBR.org has shown why new media, rather than necessarily being watered down, sloppy and amateurish, is, in many cases, far superior to the old.

Harvard Business Review editor responds to critique

Tuesday, January 12th, 2010

My post last week on the Harvard Business Review redesign drew a thoughtful response from Scott Berinato, Senior Associate Editor of the magazine. He was kind enough to allow us to repost it here.

Hi, John,

I’m Scott Berinato, senior associate editor at Harvard Business Review. We of course are watching out for reaction to our redesign and your thoughtful critique has been discussed among the editors here. We thought it was appropriate we provide a loyal reader with some (almost) real-time feedback.

I’m the editor in charge of Idea Watch, so I was particularly interested in your comments. Rest assured I’m not trying to give you a headache and I understand your initial reaction to the color and use of bold visuals. Indeed, it was startling to most of us as we started living into the new design. I think the color especially surprised me. I hope and believe some of that will wear off for you, as it has for me.

I’ll try to explain some of the thinking that went into our visual approach in Idea Watch. As this section opens the magazine, we were seeking to distinguish it from other sections of the magazine and make the magazine less daunting. I won’t get too nerdy about magazine architecture, but very short, very visual elements here help readers make that distinction, which our research said they weren’t making before and thus they were feeling daunted by prospect of starting to read the magazine. Thus by changing the pacing we help carry the reader into and through the magazine, the same way a meal changes from one course to the next. Idea Watch is bacon-wrapped scallops to the middle of the magazine’s steak dinner.

My section is devoted to showing off new and interesting business research, so we knew it would be heavy on data. Data lends itself to a visual approach. Without going this way, few of the stories in that first issue could have been told in the space they were told. I would argue they’re told more effectively using visuals as well (and when text works best, as with the piece on brain science, we didn’t force the issue). Especially in my section, where we have such limited space, visual representations of data and information is not just a style choice, but an important tool.

One good example is the trust piece you cited. The author submitted that as an 1,800-word text essay. It was a ‘tweener, too short (and not a big enough topic) for a full feature but too long for an Idea Watch piece. After taking the visual approach, the author was more pleased with the outcome than he was with his draft. He said that we lost none of the important information while making it a more attractive, readable piece of content.

Did we get all the charts right? Probably not. As first efforts go, and for a design staff not used to producing visual information, I’m proud of the results and looking forward to watching as they improve in coming issues.

The first Idea Watch isn’t perfect; as with most magazine redesigns, it really takes place in two phases. First the new design debuts, then it’s tweaked over the coming issues as we learn. I think you were right about questioning the use of those top spaces and whether or not that content is and/or should be related to the rest of the content on the page. That’s a question we’re still working out the answer to. One change we’ve already made in March is to eliminate bylines and bios from those top spaces entirely, instead making them staff-written, uncredited data shots. This change alone, I believe, removes some of that frenetic energy you felt in the section. We will continue to tweak the section as we learn and process feedback like yours.

Finally, on the information graphic about bailout and stimulus monies, the Vision Statement. This is a format we’re committed to (we’ve received positive feedback on this as well). Even more than information graphics contained within article, such as those in the pricing story, creating these large-form graphics is a unique skill, practically an art form in itself. We learned quite a bit from this one (which I happen to love) and I’m hoping you continue to give them a chance as we approach different topics and improve our visual storytelling. (The next one I’m equally excited about, it’s on new ways of thinking about markets in China).

Once again I’d like to thank you for your thoughtful critique. We love to hear from readers like yourself and take any and all constructive criticism seriously. Happy to hear your reaction to this email as well. Write any time.

Cheers,
Scott Berinato
Senior Associate Editor
Harvard Business Review

Why I don’t like the Harvard Business Review redesign

Wednesday, January 6th, 2010

I feel a bit like those folks who complained about the new Tropicana orange juice carton.

The editors of my favorite magazine, Harvard Business Review, have completely redesigned the look of the magazine. Editor-in-chief Adi Ignatius writes in his editor’s note, “we are excited to bring you a more modern, accessible magazine.”

He may want to hold off on the “accessible” comment. For me, the magazine has gotten busier – much busier. Bolder text, more graphics, more color. Everywhere from letters to the editor (now called “Interaction”) up front to the recommended reading list in back. I actually put the magazine down the first two times I started to read it. My eyes were boggling from all the colors and graphics.

In particular, the upfront IdeaWatch section (formerly Forethought) is a mess. Longer articles weave among sidebars – some relevant to the article at hand, others completely separate. And I had trouble differentiating. Is “Faith In Firms – as Low as You’d Expect,” on p. 22, part of the article “Can Technology Really Save Us”? No, it’s not. But the sidebar on p. 23, “Gauging the Impact of New Energy Technologies,” is.

This picture with its brilliant coloration and large, cartoonish numbers seems like what Edward Tufte calls “chart junk.” With four pie graphs, two outsized percentage numbers, the picture was utterly confusing to me. It took me a minute or more just trying to figure out what the graphs are trying to say.

And what of this?

(Full-size version here.)

If you can make heads or tails of this without referring to “How to Read this Chart” two or three times, I admire you.

Unfortunately, these examples are emblematic of the whole redesign. It’s far too busy for my taste. The great content is still there, it just takes more time and energy to wade through the clutter to reach it.

Perhaps I will grow used to the redesign. For certain my comfort level with the old design hasn’t helped me adapt to the changes. But I won’t ever love it, and I would be surprised if too much time passed before a “re-redesign” to improve readability and reduce the noise level.

Related post:
Customers are talking: Tropicana brings back old juice carton

Thinking about processes as “science” and “art”

Monday, March 30th, 2009

One of my most gratifying but ultimately unsuccessful work assignments was to create an offering to open up an attractive new market segment. It was gratifying because many things went well–we developed a strong brand, quickly took up a position of authority and insight, and sold several important deals. It was unsuccessful mainly because we struggled to deliver the deals we’d won. The operations team, rather than celebrating these new wins, came to dread them. They wanted more certainty and definition–I countered that this was new stuff which we couldn’t pin down yet.

I was thinking about this experience while reading “When Should A Process Be Art, Not Science?” in the March 2009 Harvard Business Review. The authors, Joseph Hall and Eric Johnson of the Tuck School of Business, argue that while many processes benefit from a scientific, methodological approach (such as McDonald’s formula for frying burgers), other processes defy standardization and, in fact, are better off not being standardized. The authors call these “artistic” processes and cite such widely dispersed examples as the creation of a Steinway piano, auditing, and customer service. Complex sales, channel management, new business development, requirements gathering are other examples of artistic processes.

Most simply, Hall and Johnson call artistic processes those with high variability and, crucially, value of variability to customers [in this case also meaning internal customers]. In other words, a process that yields different results to a customer that wants consistency isn’t an artistic process, it’s a mess.

The “artistic process” argument parallels the definition of the Cynefin framework, defined in Kurtz & Snowden’s paper “The New Dynamics of Strategy: Sensemaking in a Complex and Complicated World” and discussed in Snowden and Boone’s 2007 HBR article, “A Leader’s Framework For Decisionmaking.” The scientific processes defined by Hall and Johnson fit into Cynefin’s Known or Simple domain, while the artistic processes sit in the Complex domain.

Six Sigma adherents would claim that the segmentation of processes into scientific and artistic subsets merely excuses obstinate “artists” who don’t wish to constrain their freedom by submitting to any defined process (salespeople and sales managers are frequent targets of this accusation). Helpfully, Hall and Johnson discuss how they would propose measuring artistic processes–by harnessing customer feedback. They write:

An artistic process has to rely on external measures of success. Artists need continual exposure to customer feedback, which prevents them from constructing their own idiosyncratic notion of quality. Sometimes this feedback must come from a broad swath of customers. For example, medical professionals obviously have to work closely with all afflicted patients to diagnose and treat complex diseases – to obtain a complete picture of their symptoms and track their reactions to remedies. With other processes, including those used to product Steinway’s high-end pianos, feedback from a select group of customers can suffice.

Meaning: to check how you’re doing on non-mechanized processes, it is necessary to query the customers of the process and draw conclusions from their feedback about the process’ effectiveness. This means getting deeper feedback than we are accustomed to. For sales, it means not only tracking that a deal was won or lost, but why it was won or lost, and what could/should have been done differently, in the customers’ eyes. A lot of the work I’ve been doing in the past year has focused on this–measuring how a company is doing in telesales, or customer service, or account management by gathering customer stories and finding patterns in them revealing what customers value, or deep issues they have. [Now I have more help to describe the value of this work!]

Back to my new-business assignment. In looking back on that experience, one serious issue we had was the collision of artistic processes (marketing, sales, solution development) and scientific ones (operations, call center management, etc.). What seemed at the time to be misunderstanding or lack of teamwork may have been a poorly defined interface between the artistic processes of innovation and business development and the scientific ones required to deliver value to real customers.

Related posts:
Buyers, tell companies why they lost your business
Leaders need to manage complexity

(Photo by a hundred visions and revisions via Flickr Creative Commons)

Salespeople, provoke your prospects!

Wednesday, March 11th, 2009

A wag might say that many salespeople already provoke their prospects–you know, the old foot-in-the-door technique, the bait-and-switch, etc.

This is different. In the March Harvard Business Review, Philip Lay, Todd Hewlin and Geoffrey Moore (the “Crossing the Chasm” guy–didn’t know he was a sales expert) outline a method they call “provocation-based selling,” perhaps to link it to, and distinguish it from, the tried and true “solution selling” model.

In brief, the method asks a salesperson to:

develop a provocative point of view on a critical issue and lodge it with a line executive. To reach that senior buyer, scrap traditional lead-generation methods and focus on referral based-marketing. This two-pronged approach will strengthen your competitive position – and give you an understanding of customers’ problems that can fuel ongoing innovation.

That approach will be utterly unsurprising to any successful consultant. It’s the best way to sell consulting services–and could have been ripped from the McKinsey playbook. It is rare, however, for product selling to occur in this way, and I think there’s much to be learned from the provocation-based technique.

A sales team should develop a strong point of view about their industry, and how their products deal with the urgent issues facing their customers. A corollary–if their products don’t deal with the urgent issues, they have the wrong products or the products are wrongly positioned.

In my experience, when salespeople speak timidly about their product’s business value or deeply emphasize the product’s internal workings, it’s because they aren’t confident in their knowledge of the industry and now their product specifically helps with the current issues of the day.

If a team has confidence in its understanding of the urgent issues, and a clear knowledge of how their products add value within those urgent issues, then they can speak with confidence in a way that makes sense at the top of the prospect organization.

Using stories to communicate how the products have addressed urgent issues (”here’s what we did for Company A regarding that issue…”) allows the top-level management to participate in the discussion and enables “calling high.” Too many product companies dive into the technology of their solution right away, forgetting the crucial tie to the customer business issue, and drive away all but the most die-hard techies on the prospect side. This inevitably consigns them to “selling low” and, these days, that is as good as a loss.

Most product companies will find their challenge is gaining the understanding and mastery of the industry’s urgent issues from the prospect’s viewpoint. This is one manner of “bringing the outside in,” as John Kotter wrote in his recent book, “A Sense of Urgency.” This means going to industry conferences, reading journals, monitoring blogs. It also means talking with your existing customers, and seeing how they view the urgent business issues, and how your products help with them. [If you don't think they'll tell you, try asking them.] Then taking that insight, and looking at it across customers to develop industry-wide insights and solutions that you can share with new prospects.

“We already do that,” many companies will say. The intent is there, but few act on it. Levitt’s assertion that customers aren’t buying a 1/4″ drill bit, they’re buying a 1/4″ hole, is as true as ever. Stop selling bits, start finding holes that need to be drilled and selling those.

Related posts:
Bringing the outside in
The salesperson’s point of leverage

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