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Friday, November 25, 2011

Developing a winning Culture the Zappos way!

My guest on the podcast Joseph Michelli takes you through the Zappos company culture now and maybe the future. Joseph’s latest book, The Zappos Experience: 5 Principles to Inspire, Engage, and WOW has generated my interest on the relationship of employee and customer experience as demonstrated in my blog post, Is Zappos the Next Toyota?. We discussed this and the Zappos approach that Michelli breaks into five key elements:

  1. Serve a Perfect Fit—create bedrock company values
  2. Make it Effortlessly Swift—deliver a customer experience with ease
  3. Step into the Personal—connect with customers authentically
  4. S T R E T C H—grow people and products
  5. Play to Win—play hard, work harder
 

Download Podcast: Click and choose options: Zappos or go to the Business901 iTunes Store.

Against all odds this online business (known primarily for selling shoes in a playful and emotionally engaging ways) has revolutionized social media strategies, developed an environment which has earned it a consistent spot in the top ten of Fortune Magazine’s best places to work, created zealous fans, and attracted Amazon.com as a purchaser for more than 1.2 billion dollars. It’s time to integrate (not balance) work and fun. It’s time to benefit from the unique and effective customer employee and customer engagement techniques of Zappos!

Joseph A. Michelli, Ph.D., is an internationally sought-after speaker, author, and organizational consultant who transfers his knowledge of exceptional business practices in ways that develop joyful and productive workplaces with a focus on the total customer experience. His insights encourage leaders and frontline workers to grow and invest passionately in all aspects of their lives. Dr. Michelli has been recognized by Focus as “one of the top five Customer Service Influencers to Track in 2011.”

Related Information:
What is your iCustomer Level?
Does the Customer Experience mimic the Employee Experience?
When Efficiencies and Innovation no longer work, is Customer Centricity the answer?
Job-Centric Innovation is Rethinking Customer Needs

Thursday, November 24, 2011

Play is nature's learning engine…

…says games researcher and author Aaron Dignan. In other words, we're hardwired to enjoy games - they're addictive, skill-building, and satisfying. So the question is: How can we integrate game concepts into our work lives to help us push ideas forward? In this talk, Dignan walks through the principles of creating a great game and suggests ways that we might use them to overcome email exhaustion, spice up workaday meetings, and more.

Aaron Dignan: How to Use Games to Excel at Life and Work from 99% on Vimeo.

Aaron Dignan dressed up like a superhero for 180 straight days of the first grade, which marked the beginning of his life as an iconoclast, observer, theorist, and performer. Now, as a founding partner of the digital strategy firm Undercurrent and based in New York, he advises global brands and complex organizations like GE, PepsiCo, Ford, and Estée Lauder on their future in an increasingly technophilic world. Aaron's first book, Game Frame: Using Games as a Strategy for Success, was released on March 8th, 2011.

Links:
www.gameframers.com
www.undercurrent.com
@aarondignan
http://the99percent.com/

Related Posts:
Is Zappos the Next Toyota?
Does the Customer Experience mimic the Employee Experience?
When Efficiencies and Innovation no longer work, is Customer Centricity the answer?
Job-Centric Innovation is Rethinking Customer Needs

Wednesday, November 23, 2011

What to do with foursquare!

One million new users per month. Twenty-three check-ins per second. Millions of people—in every city, in every country, on every continent, and even from the Space Station—are vying to become mayors of their favorite shopping locations. What is foursquare and why has it become the hottest customer magnet ever conceived? Internationally bestselling author Carmine Gallo not only has had unprecedented first-hand access to foursquare’s founders, he also has interviewed dozens of business owners and marketers who have revolutionized their businesses through The Power of foursquare: 7 Innovative Ways to Get Your Customers to Check In Wherever They Are.

Watch the slideshow as you listen to the podcast!

Download Podcast: Click and choose options: Foursquare or go to the Business901 iTunes Store.

About: CARMINE GALLO is the communications coach for the world's most admired global brands. A former anchor and correspondent for CNN and CBS, Gallo has addressed executives at Intel, Cisco, Google, Medtronic, Pfizer, and many others. Gallo writes My Communications Coach, a regular column for Forbes.com. He has written several internationally bestselling and award-winning books, including The Innovation Secrets of Steve Jobs and The Presentation Secrets of Steve Jobs.  Carmine Gallo may be found online at www.carminegallo.com.

Related Information:
Carmine Gallo's Books
Developing a winning Culture the Zappos way!
Spontaneous Marks help you think – Doodling
Five Secrets of Finding Clients

Is your organization a learning organization?

This is an interview with David Garvin and Amy Edmondson, Professors, Harvard Business School. Learning organizations generate and act on new knowledge. The ability to do this enables companies to stay ahead of change and the competition.

This is the the link to the PDF of article that is discussed in the interview, Is Yours a Learning Organization? Or, you can view it below.

 

Related information:
Marketing with PDCA.
Why the Lean SALES PDCA Cycle was Created!
In love with your products more than your customers?
Janet R. McColl-Kennedy: Co-creation of Value and S-D logic
Continuous Improvement Sales and Marketing Toolset

Tuesday, November 22, 2011

Drawing with Excel in 30 minutes!

Using Microsoft Excel as a drawing tool is a surprise to most of us. When we think of using Excel, we think of creating a spreadsheet and maybe if we are adventurous creating a graph. But there is a hidden power contained in Excel, the ability to draw. One of my most popular blog post of all time, Draw your Value Stream Map in Excel includes a You Tube video of the rendering of a Excel drawing depicting Transformer (You remember the Children’s heroes). If you need proof take a look at these drawings from The Spreadsheet Page:

It turns out that Debbie is an artist, and she uses Excel as her primary drawing software (now that's odd!). The figure below shows an example. The image on the left was scanned from a catalog. The image on the right was created by Debbie, using Excel's drawing tools. The drawing consists of hundreds of individual shapes, combined together

. Excel

According to Debbie, "Most of my drawings do not take longer than two hours or four hours max to get the outlines done and the fill colors put in. I often use photographs that I've scanned and inserted into Excel, then I use the drawing tools to change the photographs into drawings. As you have already noticed I've become quite proficient at drawing on Excel, so it doesn't take me as much time as it did when I first started, now that I've figured out all the tricks.

I have a tendency to use other more “graphic” software packages in lieu of Excel but I am amazed at the simplicity of using Excel once you start. Why should I care? Most of the tools of Lean are visual in nature. In fact, one of the sayings that have been very common in Lean is “If you’re not visual, you’re not Lean.” However, in Lean and with any continuous improvement methodology metrics are important. So, if you want to be successful you cannot divorce the visual aspect and the metrics. Excel offers the marriage between the two.  Listen to the advantages described by Dean Ziegler of Systems2win:

Can you become proficient in only 30 minutes? Watch these Systems2win videos to learn how:
Types of Drawing Objects
How to Select Objects
How to use Excel as a drawing tool

Monday, November 21, 2011

It’s the Who, not the Why

Start with Why is an excellent book which I have highlighted in my blog post, Does your customer know why you do it? with author’s Simon Sinek Ted appearance. It is a great message and his discussion of the Golden Circle really nails his point. However, it is a little internally focused for me and like so many others it attempts to drive your message home from the inside out. Who is the keyword, not Why.

Why is simply yesteryear. When asking Why we focus on solutions for the customer. There are plenty of people that can solve a customer’s problem. Why is a commodity based approach that does not separate you from the competition. Simon does an excellent job using the Golden Circle to demonstrate how you have to have the passion for “Why” and translating that into the How and the What you are doing. He says that you will find like customers that share the same “Why” passion. However, this philosophy still centers on the fact that there are plenty customers out there. It does not consider the fact that for most, there is a short supply of customers.

An example of Why thinking using a simple purchase such as a new refrigerator: we address the concerns of the customer by asking why we need one, how much do they want to spend and what fits in the hole. If we start with the Who; we center on their lifestyle, who is using it, who will be installing it, who will be removing it, and maybe even who will be paying for it (if we don’t have terms to delay payment till next year). We develop a customer experience that is extended into delivery, warranty and service agreements.

We live in a replenishment society, most of us do not need anything else. We have everything. It is the company that takes the time to understand the customer and their behaviors that enables them to not simply design a solution but centering on the Who to create an outstanding customer experience. If we do that, we end up creating products and services that customers can’t resist and competitors can’t copy.

Who…

  1. Externalizes your thought processes
  2. Creates customer centric organization
  3. Enables a spirit of

    • Community
    • Co-operation
    • Co-learning
    • Co-producing
    • Co-creation

Who is the key in developing an obsession to understand the customer and allow us to deliver on customer desires and wants versus just their needs. Average companies deliver on customer needs, above average companies deliver on desires. Which one are you?

Related Information:
Work on demand, ‘It’s the demand side, stupid’
The Death of PDCA
Service Innovation – Rethinking Customer Needs
Why the Lean SALES PDCA Cycle was Created!

Sunday, November 20, 2011

Lean Marketing Lab Opens! :: Business901

Lean Marketing Lab Opens! :: Business901: The virtual world of the Lean Marketing Lab will open its doors (gateway) on Monday. November 21, 2011. This online community has been created to further the cause of bringing continuous improvement to the sales and marketing community.

Lean Marketing Lab Opens!

The virtual world of the Lean Marketing Lab will open its doors. A gateway for this online community has been created to further the cause of Lean in Sales and Marketing. Reviewing this slide presentation will give you the background on the project. Hope to see you at the Lean Marketing Lab. – Joe  

Lean Marketing Lab
View more presentations from Business901

Related Information can be found at Business901.com

Monday, November 14, 2011

Deming was just simply wrong about variation…

..when applied to Lean Sales and Marketing. We have all heard the saying attributed to John Wanamaker, a department-store magnate in the late 19th century, famously said that half the money he spent on advertising was wasted, but that he didn't know which half. That theory is substantiated in a blog post, Why Should 50% of your marketing should fail (statistical proof offered by by Don Reinertsen). So I would offer a simple explanation that we do need variation for sales and marketing to work. But it goes much deeper than that, it is the thought of the average customer.

When continuous improvement is applied to sales and marketing most think about reducing waste and segmenting customers. As Deming said, “Variation is the enemy”. Sales and marketing is a process. If we can reduce the variation and the inputs to a process, we increase the predictability of the outputs and it makes it a whole lot easier to manage those processes. As a result, we can focus on things that really do need our attention.

This is supply-side thinking. We segment out customers till we can define the “average” customer”. People that understand variation know that average is a poor measure. You could have one foot in boiling water and another in ice cold water and on average you are ok. So why do we market to the average? It makes it easier!

If we focus on Demand thinking, we must focus and embrace variation. We must ask ourselves how our customers differ and how their experiences differ. Focusing on these differences and grouping them accordingly offers us a chance to market to a broader spectrum.

An example of this is the philosophy of Mass Customization. From Wikipedia:

Mass Customization is the method of effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network." (Chase, Jacobs & Aquilano 2006, p. 419). The concept of mass customization is attributed to Stan Davis in Future Perfect[1] and was defined by Tseng & Jiao (2001, p. 685) as "producing goods and services to meet individual customer's needs with near mass production efficiency". Kaplan & Haenlein (2006) concurred, calling it "a strategy that creates value by some form of company-customer interaction at the fabrication and assembly stage of the operations level to create Wehavemet01customized products with production cost and monetary price similar to those of mass-produced products".

In a Demand Driven world, organizations must embrace customer variation. They must encourage it and make provisions for variation to increase. This is a key strategy in a demand driven world. It is where you find new customers and is a key to you innovation. Variation is not the enemy. WE HAVE MET THE ENEMY AND HE IS US. Embrace Variation; do not try to rid yourself of it.

Related Information:
Lean Marketing: Sales Quotas lead to Waste
Understanding Variation: The Key to Managing Chaos
Creating Flow with Don Reinertsen
Why should 50% of your marketing fail?

Thursday, November 10, 2011

Lean Canvas for SALES EDCA/PDCA/SDCA

SALES PDCA is the framework I use for the process that takes place in the customer groups. It is nothing more than a standard PDCA cycle except the SALES part of the framework is where the sales team gets its directions and coaching from the team coordinator and value stream manager. Within the actual PDCA stage the sales team is empowered to make their own choices and determine their own direction to accomplish the goals of that cycle. This framework is introduced in the Marketing with PDCA book.

Continuing with my Lean journey and the development of the Lean sales and Marketing platform, many of the PDCA cycles became standardized and SDCA was introduced. 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 and complex marketing environments need EDCA. EDCA = Explore, PDCA = Plan, SDCA = Standardize, marketing operations are all about moving along the EDCA>PDCA>SDCA pathway.

Out of this was the further refinement into three separate distinctive cycles of SALES EDCA, SALES PDCA, SALES SDCA. Viewing your value stream/marketing cycle in this manner creates endless opportunities for improvement. It is also much easier to handle the team concept of sales and marketing with this thought process. The sales and marketing team is a cross-functional group whose number and expertise are derived from the decision-making path of the customer. You must first have established directives for a particular marketing cycle and a structure to match it. Are you looking for creativity (EDCA), problem resolution (PDCA), or tactical execution (SDCA)? Once you have established the objectives, you choose a team structure to match it. Without this process you may have creative teams working on tactical execution or on the other hand a problem-solving team working on a creative solution.

The question remained how do we make this knowledge explicit? Several years ago, I would have just framed this as an A3 report and placed the SALES on the left side and the ECA/PDCA/SDCA on the right side. However I have decided to use the terminology of a canvas versus an A3n following the concept developed in the Business Model Generation by Alexander Osterwalder. The BMG Canvas has its roots in Design Thinking which provides a better conduit for focusing outside the organization.

In the upcoming week, I will blog about the individual Lean Canvases and Standard Work templates. But for now this slide show will serve as the introduction to the concept.

Related Information:
Successful Lean teams are iTeams
Lean needs Marketing, more than Marketing needs Lean!
Continuous Improvement Sales and Marketing Toolset
The Common Thread of Design Thinking, Service Design and Lean Marketing

Monday, November 7, 2011

What political campaigns can teach business

According to social media analyst Charlene Li, selling a product is much like selling a candidate. The best approach is tap into your core group of supporters, empower them to evangelize on your behalf and then let go! Li says that the rise of social networks has impacted the way politicians communicate with their base and that businesses can learn to have a conversation, rather than "message" their audience. Another tip -- businesses should develop a thicker skin when it comes to negative feedback and respond to criticism in real-time, like politicians are doing via the internet.

Charlene gives a great overview in the video and this is the theme of my upcoming podcast with Derek Pillie, a fifteen veteran of the political campaign trail.

There are some great lessons that businesses can take away from politics. People have a tendency to evaluate and expect marketing to create immediate business for them. Many times they evaluate marketing firms based who has the “best idea.” If that is the case, why try to convince customers to change their mind? Instead, embrace them!

As a marketing consultant, I view political campaigning as one of the most productive methods of creating immediate business. Campaign Managers are experts at using the vast array of available touch-points to reach customers and more importantly, they are Deadline Driven – Election Day.

I wonder what business can teach politics?

Related Information:
Is your marketing firm having this conversation with you?
The New Names of Marketing are still PDCA
How new is Service Dominant Logic and does it apply now?
Will Product Managers embrace Open Innovation?
Putting Customer Value in the Product Lifecycle

Friday, November 4, 2011

Will Lean always internalize the customer?

I was in a recent LinkedIn discussion that referred to Sales and Marketing customer as being the internal organization and their role was to optimize the throughput of the observation. The sales and marketing role was further explained in the terms of takt time based on optimal production of the organization. The goal of sales is to keep the factory optimized?

I respectfully disagreed based on this reasoning.

You can (maybe) do that if you have excess demand. You can then try to improve efficiencies. However, most of us live in a world that supply exceeds demand. It is not about getting rid of waste. We have excess capacity. Tell me a company that won't accept more prospects into their sales funnel or are refusing orders. In sales and marketing you have to drive revenue. I believe that the role of continuous improvement and Lean lies in this area versus the area of waste.

I have a problem understanding applying takt time in relation to sales and marketing. Theoretically, it sounds great but in actuality how does it apply with Takt Time= Net Available Time per Day / Customer Demand per Day. Who determines the acceptable and projected Takt Time for sales and marketing? Is customer demand determined by the capacity of the operations? Or is it by market share? Man ladder

How can you have takt time without customer demand? Can an internal measurement be relevant to sales? If it is the measurement that we force sales to use, it is not a Lean process. We are pushing in lieu of pulling. Pull comes from the marketplace and is one of the principles of Lean. Holding sales and marketing to an internal measurement that has little if any meaning to the marketplace or the customer confuses me. The fundamental question could be what the marketplace demand is and what our percentage of that market is. That leads into the questions of retention and acquisition. Setting targets in those areas would drive the process of sales and marketing, innovation and hold operations accountable to a realistic level.

The metrics we have been traditional using are based on an economy with excess demand. Since we live an economy that has excess supply, fundamental beliefs must change. Sales and Marketing does need a process for improvement but it is one that must be created from the marketplace and I actually believe the principles of Lean are best suited for that journey.

Another wayward thought or the truth about Process Improvement in Marketing?

I came across a blog post by Brad Powers (a recent podcast guest) on the Harvard Business Review, How Marketing Can Lead Process Improvement. In reading the post the communication with customers seems to be orchestrated. As a result, the examples discussed seem archaic and more an extension of a command and control function than one of empowerment. It left me wondering if there are examples of sales and marketing teams that are being empowered.

Just calling something continuous improvement does not mean that it is. Continuous improvement is not a series of pilot tests and deployment. Rather it is empowering your workforce to practice it every day. In modern organizations it is the practice and the power of continuous improvement that is driving results. Factory workers, Software Programmers and Health Care professionals, to name just a few are being empowered as problem solvers and knowledge workers. I would think that the sales and marketing structure should be leading the way versus being the laggards.

There is not a more important function in sales and marketing than the ability to share and create knowledge with your customer. In the 3 examples given in Brad’s post, I see the key terms optimize, experiments, research versus words like cooperation, co-create, community and surprisingly “value”. I see that heads of marketing need to spend time with employees rather that interact with customers. What’s wrong with spending time directly with customers?

There are companies doing this. A good example is many of the gaming companies that interact regularly with their players. They are highly influenced by the top players and not only seek their opinions but join in and play with them. The players I have discussed this with are amazed at the access they have to top management. Other examples include SalesForce, BMW, Lego, Kraft and P & G.

A customer does not realize any value from your product/service till he uses it. When you view your product/service as an enabler of value creation versus the center of value than you can see how increasing knowledge flows between you and your customer is at the center of sales and marketing. Value is an input to your company not an output. There is only one person that determines the value of your organization and that is the customer. I think many continuous improvement methodologies have hijacked the term customer. It is not an internal person. The customer is the person that purchases and uses the product.

When viewing Lean and PDCA as a knowledge creation vehicle versus a waste reduction tool, Lean becomes applicable to sales and marketing. Without this understanding, I see little hope for Lean in the sales and marketing process.

Related Information:
In love with your products more than your customers?
The Service-dominant Logic of Marketing: Dialog, Debate, And Directions
If all of us need to be marketers, what’s the framework?
7 Principles of Universal Design & Beyond
The Common Thread of Design Thinking, Service Design and Lean Marketing

Thursday, November 3, 2011

Fantastic Conversation on the Multiverse

Every marketer and gamer should watch this!

Joe Pine seeks to do nothing less than redefine our known universe -- a bold goal which manifested itself in The Multiverse, a 3D framework he created. By examining the fields created at the intersection of three axes (space/no space, time/no time, and matter/no matter), Joe introduces us to eight realms for creating value by innovating experiences. Physical virtuality, for example, involves designing things virtually and then making them a reality, such as the way 3D bio-printers manufacture human tissue and organs. Through Joe's eyes, we see the future and it is mind blowing!

From a San Diego TEDx, x = independently organized event In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience.

Related Information:
Demonstrating Social Media using an Elephant
Gaming can make a better world
The Common Thread of Design Thinking, Service Design and Lean Marketing
Can the customer be front stage in your organization?
Games are invading the real world

Wednesday, November 2, 2011

Sustain a Lean Culture, use Lean Tools

I recently worked the Systems2win booth this week at the AME Conference in Dallas, TX. I enjoy the opportunity tremendously as I get to spend a great deal of time with hundreds of Lean Practitioners in a variety of positions and industries. Discussing the Systems2win word and excel continuous improvement templates offers me the opportunity to revisit many of the basic Lean principles.

You need leadership and a mindset or cultural shift in a Lean Transformation but I support the thinking that most of us use tools to learn and sustain improvement efforts. If we are unable to use the tools, we can’t implement. I use the analogy that a carpenter becomes a carpenter by becoming proficient with a hammer. You become proficient with Lean by using Value stream Mapping, Standard Work and the others.

I stray away from some of the traditional tools of Lean as a result of my work in sales and marketing. Spending the time in the booth discussing the breadth (there are over 150 templates) of Lean foundational tools that Systems2win supplies was for me a refresher course. It re-cemented the practical applications of Lean to standard work (no pun attended). Lean is firmly rooted in accomplishing work. It is not about creating elaborate control structures. It is simply about learning by doing and how better to accomplish that but through the use of the tools.

After coming home, I looked through a few of the Systesm2win templates on YouTube to strengthen that learning. I have included the Introduction to Value Stream Mapping.

I found that taking a Value Stream Mapping project off of a board and documenting it on software besides the obvious attributes of archiving and sharing, it creates, distributes and reinforces the knowledge of the process and the use of the mapping process for other projects.   

Related Information
Data Driven Problem Solving Program
Lean or Six Sigma which fork in the road do you take?
Continuous Improvement Sales and Marketing Toolset

Shalloway on Teamwork in Kanban, part 3 f 3

Alan is an industry thought leader in Lean, Kanban, product portfolio management, Scrum and agile design. He helps companies transition to Lean and Agile methods enterprise-wide as well teaches courses in these areas. He is the founder and CEO of Net Objectives and also can be found on twitter @alshalloway.

Alan is the primary author of
Essential Skills for the Agile Developer: A Guide to Better Programming and Design
Lean-Agile Software Development: Achieving Enterprise Agility
Design Patterns Explained: A New Perspective on Object-Oriented Design
And a favorite of mine: Lean-Agile Pocket Guide for Scrum Teams

Download Podcast: Click and choose options: Teamwork in Kanban or go to the Business901 iTunes Store.

This podcast is broken down into 3 parts. I had trouble running Alan down and finally caught him on his cell phone so the quality is not the best. However, Alan delivered great content and we could hardly stop talking. His view of the Agile community, Scrum, Kanban and Lean is unique and refreshing.

Part 1 of 3: Alan Shalloway discusses the state of Agile!, part 1 of 3
Part 2 of 3: Can Agile work at the Enterprise Level with Alan Shalloway?

Related Information:
The Lean Agile Train Software Transcription
Understand Scrum, Understand Implementing PDCA
Lean Architecture: for Agile Software Development
The differences in Lean and Agile