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Wednesday, August 31, 2011

Design Thinking, Service Design and Lean Marketing

The subject of Design Thinking and Service Design has become more and more prevalent in my thought process recently and many find those words somewhat fuzzy type thinking. But it is really targeted at people that want to become more humanistic in their way of thinking and from my viewpoint their sales and marketing process.

A recent podcast guest of mine, Tim Ogilvie, CEO of innovation strategy consultancy Peer Insight and co-author of a new book Designing for Growth: A Design Thinking Toolkit for Managers when asked how to define Design Thinking said:

I'm trained as an engineer, and I grew up in the quality movement in the late '80s and early '90s. In the quality movement we use a method of thinking I would refer to as analytical thinking. You have a data set to work from and you reduce that data set to a series of insights, and you build potential new answers based on that. Design thinking is another problem solving approach that is a complement to analytic thinking.

Design thinking is perfect for situations where we're looking at a future that doesn't exist yet. Joe, if we're trying to figure out a future that may or may not come into existence, we don't have any source of data. And so, the analytic tools break down very quickly. Then as a practicing manager you think, "Well, I don't have tools for that."

Design thinking is the tools for that, to say, hey, we can actually prototype alternative futures. Rather than creating data for them, we can simply have target users experience those prototypes. We can observe from behaviors and preferences which ones are working better than others.

The core of what's in a design thinking approach is extreme focus on the user and their experience; visualizing multiple options, testing those in the hands of the users, and iterating very quickly from less appealing options to more appealing options. It just relies on experimentation which analytic problem solving processes don't need to rely on those as much because, in the world of analytics, we have source data from which to work.

I think you must be careful in defining an exact science to Design Thinking as it needs to remain very humanistic. However the iterative steps of exploration, creation, reflection and implementation are a very basic approach. There are other frameworks mentioned in the book, This is Service Design Thinking that include; identify-build –measure (Engine, 2009), insight-idea-prototyping-delivery (live work, 2009), discovering-concepting-designing-building-implementing (Designthinkers,2009), to mention just a few. Recently, I have came across IR4TD which has a cycle of idea generation-proof of concept-prototyping-commercialization.

As I reviewed these to put them into practice, I found myself going back the Lean principle of PDCA. Graham Hill had mentioned the concept of EDCA (Explore-Do-Check-Act). Graham was the head of CRM at Toyota Financial Services. He stated that:

Marketing in highly competitive markets is about exploring new propositions on the innovation fitness landscape. The environment determines where to start. Complex marketing environments need EDCA. Complicated ones often start with PDCA ½.” EDCA = Explore, PDCA = Plan, SDCA = Standardize. Marketing Ops is all about moving along the EDCA>PDCA>SDCA pathway.

The concepts of Design Thinking, Service Design and Lean Marketing have very close resemblance and ties to each other. The acronyms at some point become meaningless. They only important to the ones that compete on image and brand. The ones that compete in their customer arenas  can probably call anything they want.

Related Information:
Design Thinker exposed as Left Brain Dominant
How new is Service Dominant Logic and does it apply now?
Asking the right questions about Lean?
Service Design Thinking
Continuous Improvement Sales and Marketing Toolset

The New Names of Marketing are still PDCA

There is a changing emphasis on customer interaction and the importance of embracing uncertainty in your organization. In an interview in the MIT Sloan Management Review with Michael Schrage on Value-Creation, Experiments and Why IT does Matter, he stated:

The cost of experimentation is now the same or less than the cost of analysis. You can get more value for time, more value for dollar, more value for Euro, by doing a quick experiment than from doing a sophisticated analysis. In fact, your quick experiment can make your sophisticated analysis better.”

Later in the interview, in answer to the question, "Can you summarize the three things you think companies need to get good at?" Michael Schrage also stated:

The most important thing I would urge companies to do would be to experiment, by crafting good business hypotheses. I can now look executives in the eye and say, "The cost of experimentation is now the same or less than the cost of analysis. You can get more value for time, more value for dollar, more value for euro, by doing a quick experiment than from doing a sophisticated analysis. In fact, your quick experiment can make your sophisticated analysis better

The second is to promote greater collaboration, interaction, and diversity—not politically-correct diversity, but diversity of skills and points of view.

And the third is to think more clearly about innovation. It’s no longer about creating new features and functionality. We have to move away from the notion of innovation being about greater creation of choice. Instead, it’s about greater value from use.

To paraphrase from an outstanding book, Everything Is Obvious: *Once You Know the Answer:

Most of us (marketers) have more data than we know what to do with. The real problem that exists is what we are doing causing increased sales or what we are measuring is the correlation between the two.

Differentiation between correlation and causation can be extremely difficult. The authors recommend running an experiment. Without an experiment they conclude that it’s actually close to impossible to ascertain cause and effect, and as a result measure real return.

They view experiments not as a one-time exercise that either yields the answer or doesn’t, but rather as part of an ongoing learning process that is built into the process.

Iterative Cycles seems to be the buzz word these days: Just look at the new books: 

All of them focusing on iterations but they are fundamentally just PDCA (Plan–Do–Check–Act). Test a hypothesis, improve on it and test it again. Marketing is about moving along the cycles of EDCA = Explore, PDCA = Plan, and SDCA = Standardize. Sometimes you may not uneven use a full cycle but rather use more of a game environment half-cycle version of Inspect and Adapt (IA). These iterative process are responding to the ever increasing world of uncertainty that we live in.

Iterative cycles are best handled through team interactions. Decisions made in isolation seldom have a chance of success. And isolation means your organization, not an individual. You have to gather outside influencers from the markets you serve. To do this, the team must be empowered and schooled with the new toolset. You can find these new sets of tools by researching subjects like: Design Thinking, Cynefin, Value Networks, Open Innovation, Co-creation, Lean Startup, Service-Dominant Logic, Q-Storming, Game Storming, and Kanban.

The tools used in sales and marketing are certainly changing. Gone are the days of being trained in cold-calling and the art of closing and in are the days of iteration, open innovation, co-creation and collaboration. Funny, I did not even mention social media?

Friday, August 26, 2011

Virtual Organizations will change the Org chart?

It may take a while to get here but the organizations that start making the change to “Virtual-ality” will have the best talent and a hidden asset better ways to communicate with your customer.

Dorian Selz's companies are great examples of what could be deemed virtual organizations. Flat hierarchies, less management, geographically dispersed teams are all part of his daily life with local.ch and now Memonic. He will share his experience on how new technologies are reshaping the way our organizations function.

Related Information:
Will Product Managers embrace Open Innovation?
Why bother with Value Networks?
Identifying your Lean sales and marketing teams
What will your workplace be like in 2020?
What’s behind Collaboration and Value Networks?

Mindmap on Death by Meeting–the 4 Meetings

This is a five part afternoon series depicting the mindmaps that I have created on the books of Patrick Lencioni. His website and company, The Table Group offers additional information on these subjects.

This Mindmap was constructed during the listening of the book, Death by Meeting: A Leadership Fable...About Solving the Most Painful Problem in Business (J-B Lencioni Series) where the author discusses how meetings should be interactive, not passive, and they should be structured with issues of immediate importance discussed in "weekly tactical" meetings, and issues that will fundamentally affect the business addressed in "monthly strategic" meetings.

The Four Meetings

Related Information:
Becoming Agile: …in an imperfect world
Improve Communication – Have more meetings?
Quality and Collaboration eBook
The 4 Disciplines of Execution (Revised Edition): The Secret to Getting Things Done, On Time, With Excellence

Mindmap on Writing Well

Not all the time do I get the opportunity to create a Mindmap on an audio book but there have been a few special ones that I have. It usually occurs on the 2nd listen since I typically am listening to them while I am driving or walking the dog.  Well this one has been listened to more than a couple of times.

This particular book is a timeless classic and has been one of my favorite ones for many years. On Writing Well: The Classic Guide to Writing Nonfiction, first published in 1976, has sold almost 1.5 million copies to three generations of writers, editors, journalists, teachers and students. I recommend it to any inspiring writer or blogger.

Writing Well

Most of my writing and podcast are geared towards a learning experience for me. It may sound somewhat selfish but I have found that is the best way to immerse myself in a subject. Another of Zinsser’s books, Writing To Learn was the basic structure of how my blog and podcast has developed.  

About: William Zinsser, a writer, editor, and teacher, is a fourth-generation New Yorker, born in 1922. His 18 books, which range in subject from music to baseball to American travel, include several widely read books about writing.

P.S. I own the hard copy of both books.

Related Information:
Reinventing Your Company in a Customer-Driven Marketplace
Create space; create agility; and create the future
A Lean Experts Guide to Blogging and Twitter
Content marketing strategy from start to finish

Thursday, August 25, 2011

Using Lean and Six Sigma for Government and Healthcare

Improve Healthcare and Government thru Lean and Six Sigma…You just Gotta Wanna! This was the theme echoed numerous times by my podcast guest, Jay Author of QI Macros. We started out discussing his book, Lean Six Sigma for Hospitals: Simple Steps to Fast, Affordable, and Flawless Healthcare but soon moved into a discussions that can be applied to any organization. 

Jay started many years ago simplifying the Lean Six Sigma process through his early books, Lean Simplified and Six Sigma Simplified which eventually led to Lean Six Sigma Demystified: A Self-Teaching Guide. Jay has always been a master at simplifying these process and reducing the cost of entry into a methodology. His belief is that you can go a long way (5 sigma) by just doing it and utilizing only a few basic tools that he discusses in his money-belt videos. Though I was in introduced to Lean and Six Sigma through other books and people, Jay’s first book on the subject  Lean Six Sigma Coloring book was the one I used for the first application I participated in at the manufacturing level. 

Download Podcast: Click and choose options: Simplifying Lean and Six Sigma or go to the Business901 iTunes Store

Jay Arthur works with companies that want to plug the leaks in their cash flow using Lean Six Sigma. Jay is the only improvement specialist that understands and can help you pinpoint areas for improvement in processes, people, and technology. Jay is first and foremost a Money Belt; he knows how to use data to pinpoint broken processes. Jay helps teams understand their communication styles and restore broken connections. Jay has 30 years experience developing software on everything from mainframes to PCs.

Related Information:
Lean Six Sigma for Government
Operational Excellence in Government, is it Possible?
Transforming Healthcare with Lean eBook
Story of Going Lean in Healthcare: On the Mend

Lean Engagement Team

The next book in the Marketing with Lean Series will be the Lean Engagement Team. It will concentrate on the development of a sales and marketing structure that can support customer engagement through out the organization. This structure will be self-organizing at times and provide for customer touch points deep within the organization. The book will also contain chapters on Co-creation, Design Thinking and provide a framework for organizing sales and marketing teams.  

Lean Engagement Team
View more presentations from Business901

The book is approximately 60 days away from completion. Anyone that purchases the Lean Marketing House Trio on the Business901 website will receive a free download of this book when it is released. I would recommend reading the others before this one anyway.

P.S. Don’t think you need a Sales Team quite yet? Read McKinsey Quarterly: We’re all marketers now

Related Information:
SALES PDCA Framework for Lean Sales and Marketing
Profound knowledge for Lean Marketing
If all of us need to be marketers, what’s the framework?
The 7 step Lean Process of Marketing to Toyota

Thursday, August 18, 2011

Design Thinker exposed as Left Brain Dominant

In a recent blog post, It’s not your Grandmother’s Lean anymore! I introduced a few thoughts from Tim Ogilvie, CEO of innovation strategy consultancy Peer Insight new book Designing for Growth: A Design Thinking Toolkit for Managers. I would encourage you to visit that post before listening to the podcast and leave the diagram up or print it out as the discussion takes place.Tim Ogilvie Web

If you have been Design Thinking challenged this book is for you. The book is built upon these four questions (A Design Thinkers PDCA?):

  1. What is? Exploring the current reality
  2. What if? Envisioning alternative futures
  3. What wows? Getting users to help make tough choices
  4. What works? Making it work in-market, and as a business

Aligned to the four questions are ten tools, including customer journey mapping, value chain analysis, customer co-creation, and the learning launch. To make them come alive, readers are introduced to a number of practicing managers who are all using design thinking to drive innovation and growth in their organizations, including accountants, marketers, a nurse and an engineer – none of whom have design training.

Download Podcast: Click and choose options: Design Thinking or go to the Business901 iTunes Store

I believe what is more intriguing than the description and use of tools (Design Thinking must be going mainstream if we start having tool discussions), is the way that the tools are viewed. This, I believe is the real secret sauce in the book. As I read the book, I realized how easy it was to take and modify my Lean tool set to the desired applications or as others may put it to the culture of the company. One of the strengths of Lean that may be forgotten is that it is the adaption of the tools and culture and the process of making them your own which is the most important ingredient. Certainly we are not going to make major changes to PDCA but what is wrong in using an A3 Report laid out like the Business Model Generationtemplate.

We might have torched a few sacred cows during the podcast. One of them is thinking differently or moving away from the traditional Lean tools and the other is exposing a so-called Design Thinker, such as Tim as Left Brain Dominant!

Related Information:
How new is Service Dominant Logic and does it apply now?
Asking the right questions about Lean?
Service Design Thinking
Steve Blank on the Lean Startup at Ann Arbor

Tuesday, August 16, 2011

Grow Revenue thru Lean Sales and Marketing

At Agile Cincinnati last week, I had the opportunity to present the Lean Sales and Marketing presentation, It’s not your Grandmother’s Lean Anymore! The reason I choose this title is that so many identify Lean with waste reduction where I view Lean and PDCA from the aspect of knowledge creation. The first part of my slide deck discusses that and the new thinking that social media has brought upon us. That part was delivered with a hint of sarcasm. After setting the stage, my tone change dramatically after the slide, “Why Lean!”

Special thanks to the group at Agile Cincinnati. They engaged the speaker through out the discussion and made my part very simple. An enjoyable experience.

Resources I used:

Books:
This is Service Design Thinking: Basics - Tools - Cases
The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion
Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers
Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Revised and Updated
The Experience Economy: Work Is Theater & Every Business a Stage
The Toyota Way Fieldbook
The Service-dominant Logic of Marketing: Dialog, Debate, And Directions
Designing for Growth: A Design Thinking Toolkit for Managers

Websites:
Value Co-Creation: WimRampenSlideshare
McKinsey Quarterly: We’re all marketers now
Forrester: Welcome To The Era Of Agile Commerce
Scott Brinker: 8 things every marketing technologist should know
Janet R. McColl-Kennedy: Co-creation of Value and S-D logic

Friday, August 5, 2011

What is a great Team?

In a recent Business901 Podcast, Transforming Ordinary Teams to Extraordinary, Geoff Bellman co-author of Extraordinary Groups: How Ordinary Teams Achieve Amazing Results discussed what makes a great team.  Geoff discussed the 8 points that they found common in those teams and how you can use them to improve your chances of creating a extraordinary team.


What is a Great Team? -

Geoff can be found at http://extraordinarygroups.com/.

Related Information:
Reducing Muda for Others with Kaizen
Balancing Internal and External Lean Six Sigma Consulting Roles
Will Product Managers embrace Open Innovation?
Accomplished Innovator creates an Open Innovation Incubator
A Beginning Step to Co-Creation

Ways to Improve your Marketing!

This Ted video offers some great ideas about design in a a spectacular (and often quite funny) slide deck of surfer-turned-designer David Carson work and found images. He also exposes some surprising description of several prominent magazines handling of sensitive media.

Lean about Design, Discover and Humor and not in any particular order.

Related Information:
Is your marketing concentrated in area that makes a difference?
Can Voice of Customer deliver?
Unclear Customer Value leads to Failure
Are you focusing on your customers conversations?

Thursday, August 4, 2011

Reducing Muda for Others with Kaizen

Kaizen is about involving employees to get them not only the way to do work but to help improve the way others do their work. The Friday Video Series continues with Dr. Michael Balle, the Gemba Coach at the Lean Enterprise Institute.

Dr. Balle is a multiple Shingo Prize winner as an author of the The Gold Mine and The Lean Manager. His newest Shingo Prize was on the adaption of The Gold Mine: A Novel of Lean Turnaround to an audiobook that features performances by multiple readers who bring its realistic business story and characters to life.

Dr. Michael Balle is the Gemba Coach at the Lean Enterprise Institute

Past Videos with Dr. Balle on the Biz901 You Tube Channel

Books Mentioned in this discussion:
One Team on All Levels: Stories from Toyota Team Members, Second Edition
Toyota Culture: The Heart and Soul of the Toyota Way
Toyota Kaizen Methods: Six Steps to Improvement

Related Information:
The Subservient Marketing Funnel
Servant Leadership in the Toyota Culture
What will your workplace be like in 2020?

Iowa Blended Learning Programs in Lean Six Sigma

Many people shy away from quality or continuous improvement programs since they are unable to see the direct benefits of it. Steven C. Wilson a leading Lean Six Sigma Trainer in the State of Iowa outlined a unique training program at the Southwest Iowa Manufacturers Alliance for Quality program. He introduced his latest adult learning training methods and how the training is adapted to a particular organization.

Steve commented on the training, “Too often, training programs are not utilized when employees get back to work. Based on my twenty years of assisting organizations and individuals improve quality through training, I have identified several components that will encourage employees and their organizations to change and use these new skills. Under the title of iQuality Academy, I have moved our training programs from tactical learning and acquiring new skills to providing the path from training to improved business performance.”

I think this is a unique approach and a great way to use the advantages of virtual learning. If you can’t tell by listening, Steve does voice over work and works with authors, trainers and studio producers, to make their presentations more effective and entertaining. He is also the host of Quality Conversation, Quality Conversations, an internet based radio program dedicated to the discussion of “all things quality”.  Currently the program is heard in over 35 countries.

I was fortunate to have Steve participate in a podcast if you would like to take a deeper dive on the subject. The podcast centers around being a successful trainer and consultant. Download Podcast: Click and choose options: Iowa Quality Training or go to the Business901 iTunes Store 

If you are from Iowa, Steve hosted a program about Funding Quality Training. Bernie Duis, Director of Economic Development at Iowa Western Community College (www.iwcc.edu), joined Steve for a discussion about Iowa's quality training funding programs, administered by the state's 15 community colleges. 

Disclaimer: I work with Steve but felt this was an excellent presentation to share. I thought he did a masterful job of presenting and it was a good example of what how voice over work might improve your presentations.

Related Information:
Lean Six Sigma for Government
Balancing Internal and External Lean Six Sigma Consulting Roles
Steve’s website: Wilson Consulting and Training Services,

Wednesday, August 3, 2011

Accomplished Innovator creates an Open Innovation Program

Razi Imam founder of 113 Industries was on the Business901podcast Empower yourself before the Team. We discussed a powerful motivational philosophy highlighted in Razi’s new book Driven: A How-to Strategy for Unlocking Your Greatest Potential. Razi Imam

Before the podcast we had discussed his new company,  113 Industries, an industry-driven business incubator focusing on helping breakthrough discoveries become viable commercial products. a complete description is in this brochure High-Speed Open Innovation Brochure. In this podcast, we discussed this startup concept which I found to be a great tutorial for articulating the customer's problem that he is solving.

Download Podcast: Click and choose options: Open Innovation or go to the Business901 iTunes Store

Razi is not a stranger to startups. He is the founder of a fast growing software company called Landslide Technologies that is receiving rave reviews from customers, analysts and press. This company has been named ‘visionary’ three years in row by the lead leading analyst firm – The Gartner Group.

Related Information:
Power of Check = The Pivot in PDCA
Steve Blank on the Lean Startup at Ann Arbor
The Strategy of the Fighter Pilot Revisited
Dealing with uncertainty in the Lean Startup

The Different Levels of Kaizen

Do you consider how Individual Kaizen effects your organization? Does your CEO create more waste than a production worker? The Friday Video Series continues with Dr. Michael Balle, the Gemba Coach at the Lean Enterprise Institute. This series of videos continues with a central theme of Kaizen.

Dr. Balle is a multiple Shingo Prize winner as an author of the The Gold Mine and The Lean Manager. His newest Shingo Prize was on the adaption of The Gold Mine: A Novel of Lean Turnaround to an audiobook that features performances by multiple readers who bring its realistic business story and characters to life.

Dr. Michael Balle is the Gemba Coach at the Lean Enterprise Institute

Related Information:
Improve Communication – Have more meetings?
Quality and Collaboration eBook
The 4 Disciplines of Execution (Revised Edition): The Secret to Getting Things Done, On Time, With Excellence
A Gemba Talk with Womack on Lean
Kaizen