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Tuesday, February 28, 2012

Appreciative Inquiry instead of Problem Solving

Could this be the missing link between Lean and Sales and Marketing? 

Appreciative Inquiry (AI) focuses on growing or increasing in value through exploration and discovery. It is a positive approach to change. It compliments Lean Thinking when you view Lean from a Value perspective versus a Waste Perspective. It is also relevant on how you use Lean. If you use Lean on the supply side of the equation ridding yourself of waste might be the predominant thought. If you use Lean on the demand side, you have a tendency to view it more as a value producing mechanism.

Lean vs Appreciative Inquiry

  • Lean you identify key problems vs AI you look for best experience or practice.
  • Lean analyzes causes vs AI create future vision.
  • Lean finds possible solutions vs AI shares values through dialogue.
  • Lean you create action plans vs AI creates the future.
  • Lean lends itself to linear understanding vs AI "leans" toward circular understanding.

AI-vs-Lean

So what are your thoughts?

  • What happens when you take a positive approach to Lean?
  • Does the same problem solving methods work?
  • Can Appreciative Inquiry co-exist with Lean?

I was introduced to Appreciative Inquiry by fellow blogger, Ankit Patel who can be found at The Lean Way Consulting.

Related Information:
Slideshow, I used for reference:
Value can no longer be defined as What a Customer will pay for!
Evolution of Standard Work in my Sales and Marketing
Prototypes provide a Pathway for Connecting with Customers

Do you co-create value with your Customer?

My podcast guest next week is Arne van Oosterom, Partner at DesignThinkers in Amsterdam. He is a Designer in Residence at the Oslo School for Architecture and Design & Norwegian Center for Service Innovation, Founder of the Design Thinkers Network, Co-Founder of the Service Design Network Netherlands, Catalyst at WENOVSKI and Founder of the Healthcare Initiative CareToDesign and Keynote Speaker at various International Universities and Conferences. A preview of the podcast is below:

Joe:  I think you have to go deeper than relationships. You have to actually start playing in the customer's playground. You've got to be there with them in the use of the product. Does service design support that theory?

Arne:  Well, it's support service design in the sense that we really believe in what we call a value co‑creation. Value is always being co‑created, and we are moving away from what we call value in exchange, to a world where value is being used as a center stage. Value in exchange very simply means that you put a lot of value into a product as a factory as a producer, and then you exchange your product for money with a consumer. I buy something for my company, and I give them money, they give me a product. That's value in exchange. That's what we are focusing on right now, which is the product‑dominant logic.

But you're moving more towards a service‑dominant logic, which is something you can see, for instance, with smartphones. I always say, a couple years ago when you would buy a non‑smartphone, a traditional Nokia when we were still buying Nokias, you would buy the phone. But if you put the phone in your closet, Nokia wouldn't care. The deal was made, money was exchanged, so that's fine.

Nowadays, if you buy a phone, either the producer of the phone ‑‑ be it Samsung, be it Nokia, be it Apple ‑‑ they will not be happy if you're not starting to use the phone. You need to have the phone, because it's connected to all kinds of other stuff, and it's part of this ecosystem. This ecosystem is only healthy when it's in use.

So it has to have value for me in use, and that is something that is very much different, because I think what we'll see is that more and more products will become connected. And data becomes more and more important, because that is actually the way you have your relationships with your customers. That's your conversation you have with your customers.

I specifically enjoyed the comment, “This ecosystem is only healthy when it is in use.” Do you look at your product or service from that point of view? Do you treat your product/service as an enabler of value? IT frames your perspective entirely different. In fact, it is one of my key theories on how you create demand. Is your product unhealthy because you added more features and benefits to appeal to a wider audience? Would you have been better off increasing the use of your product through additional product/services? To accomplish this, you have to be involved with your customer. You cannot just be observing, you need to roll up you’re sleeves and take off your boots and play in their playground.

Related Information:
It’s not about the things we make, it’s how we use the things we make
Value can no longer be defined as What a Customer will pay for!
Can Service Design increase Customer demand?
The Service-dominant Logic of Marketing: Dialog, Debate, And Directions

Monday, February 27, 2012

Getting Resistance to Appreciative Inquiry?

In this weeks Business901 Podcast, my guest will be Sara Orem, co-author of Appreciative Coaching: A Positive Process for Change (Jossey-Bass Business & Management). Our conversation centered on the Appreciative Inquiry approach. From Wikipedia:

Appreciative Inquiry (sometimes shortened to "AI") is primarily an organizational development method which seeks to engage all levels of an organization (and often its customers and suppliers) to renew, change and improve performance. Its exponents view it as being applicable to organizations facing rapid change or growth. David Cooperrider is generally credited with coining the term 'Appreciative Inquiry'.

The Appreciative Inquiry model is based on the assumption that the questions we ask will tend to focus our attention in a particular direction. Some other methods of assessing and evaluating a situation and then proposing solutions are based on a deficiency model. Some other methods ask questions such as “What are the problems?”, “What’s wrong?” or “What needs to be fixed?”.

Instead of asking “What’s the problem?”, some other methods couch the question in terms of challenges, which AI argues maintains a basis of deficiency, the thinking behind the questions assuming that there is something wrong, or that something needs to be fixed or solved.

Appreciative Inquiry takes an alternative approach. As a self defined "asset-based approach" it starts with the belief that every organization, and every person in that organization, has positive aspects that can be built upon. It asks questions like “What’s working well?”, “What’s good about what you are currently doing?”

Some researchers believe that excessive focus on dysfunctions can actually cause them to become worse or fail to become better. By contrast, AI argues, when all members of an organization are motivated to understand and value the most favorable features of its culture, it can make rapid improvements.

Strength-based methods are used in the creation of organizational development strategy and implementation of organizational effectiveness tactics. The appreciative mode of inquiry often relies on interviews to qualitatively understand the organization's potential strengths by looking at an organization's experience and its potential; the objective is to elucidate the assets and personal motivations that are its strengths.

From the upcoming Business901 Podcast:

Joe:  What are some of the pushbacks that you get when Appreciative Inquiry is first addressed? Is there or do you just approach it positively that it's really not a pushback?

Sarah:  I would say that I get lots of pushback. When I first was Dr. Orem and I was doing some consulting for a person who had been my boss and I said that I wanted to introduce a new sales program that we were going to do in a bank and we introduced the same sales person in a bank where this person had been my boss. He moved to another bank. I described how I wanted to initiate it with Appreciative Inquiry and he looked at me with his face scrunched up and I didn't know what the scrunch meant but I knew something was coming that he didn't like. He said to me, "Could we use different words?" The words for the four or five stages depending on how you characterize the very beginning are define, which is to define your topic, then discover, next is dream, then design, and finally, destiny.

Well, "dream" and "destiny" are woo woo, you know, words that we don't use in organizations very much. Fortunately, I'd had a learner in one of my classes who was a consultant in Canada, and she dreamed up the four Is or four stages rather than discover, dream, design, and destiny, and I won't be able to recite those to you right now, but they were essentially had the same meanings. They were much harder‑edged organizational words.

One of the areas of pushback is the language of Appreciative Inquiry. One of the things that Cooperrider says is that words are so important; the words we use have different... People have different reactions to two words that essentially mean the same thing. So I think I have to be careful when I change those four stages to different words, and believe that I'm honoring his original intentions.

Words are one thing. The second thing is, there are lots and lots and lots and lots of people in organizations who believe that you should find the culprit, beat the culprit to a pulp, go about something new.

I don't mean to be too cute about that, but what I'm saying is that the process is to really go looking for what's wrong, then do a root cause analysis, which is how did it go wrong, and what's really wrong, even though the presenting symptom may not be the whole thing, then design some sort of solution, or brainstorm about possible solutions, and then design an action plan.

When I tell people that there's another way to do that and that we may end up in a better place, some people just don't believe it. They don't want to consider it; they don't believe it, because they believe that problem‑solving works for them. I don't doubt it. I mean, I would never say it didn’t.

I just did a brief introduction to Appreciative Inquiry from my own website, and I said problem solving works if there's something very specific that's wrong, but if it's a negative culture, for instance, in an organization, where do you start? I mean, what do you fix? Appreciative Inquiry really, really is, I think, a better way to approach systemic issues.ach

Could this be the missing link between Lean and Sales and Marketing? Appreciative Inquiry instead of Problem Solving

Related Information:
Value can no longer be defined as What a Customer will pay for!
Evolution of Standard Work in my Sales and Marketing
Prototypes provide a Pathway for Connecting with Customers

Friday, February 24, 2012

What’s new in Business Model Generation? Customer Value Canvas and more

Need a collection of tools to help generate business model ideas! The Business Model Canvas is an analytical tool outlined in the book Business Model Generation. It is a visual template preformatted with the nine blocks of a business model, which allows you to develop and sketch out new or existing business models. This book has sold over 220,000 copies the past two years and has established itself as one of the leading sources of modeling for both startups and established businesses. 

If you're ready to change the rules, you belong to "the business model generation!" Listen to Alex discuss this concept and he latest extensions to the BMGen platform such as the Customer Value Canvas plugin. 

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

Alex OsterwalderAbout: Dr. Alexander Osterwalder is a sought-after author, speaker, workshop facilitator and adviser on the topic of business model design and innovation. He has established himself as a global thought leader in this area, based on a systematic and practical methodology to achieve business model innovation. Executives and entrepreneurs all over the world apply Dr. Osterwalderʼs approach to strengthen their business model and achieve a competitive advantage through business model innovation. Organizations that use his approach include 3M, Ericsson, IBM, Telenor, Capgemini, Deloitte, Logica, Public Works and Government Services Canada, and many more. 

  • Competitive Advantage Through Business Model Innovation
  • Aligning Business Model Innovation and Information Technology
  • From Business Model to Business Plan
  • Private Banking Business Models - discover, understand, define
  • Business Models in the Media Industry
  • Business Models at the Bottom of the Pyramid
  • Social Entrepreneurship Business models
  • Design Thinking in Business

Alex’s Websites:
http://www.businessmodelalchemist.com
http://businessmodelhub.com/
http://www.businessmodelgeneration.com/

Related Information:
Do You Know the Right Job For Your Products?
Lean Canvas for Lean EDCA-PDCA-SDCA
Will Product Managers embrace Open Innovation?
Steve Blank on the Lean Startup at Ann Arbor

Thursday, February 23, 2012

A Product Marketers perspective on Prototyping

Matthew Yubas is the author of Getting Your Prototype Made Quick and Easy and a Marketing Consultant for the Small Business Development and International Trade Center. He has developed products for 24 years as an Engineer, Product Manager, and Consultant for startups, small business, and Fortune 500 companies. As an young entrepreneur, he was a co-founder of a software company that developed one of the first personal information management software products. Matt Yubas

Matt has launched new products such as software applications, wireless devices, and websites. In addition, he has helped clients in a diverse number of industries that include photography equipment, auto accessories, soy candles, children's clothing, sporting goods, digital art, and home décor. Matthew is the author of several articles, eBooks, kits, and the popular book Product Idea to Product Success: A Complete Step-by-Step Guide to Making Money from Your Idea .

 

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

Matt’s mission is to help inventors, entrepreneurs, and everyday people with ideas. He Says, “You might have an invention that can benefit society and make our lives easier. No one can do it alone. If you haven't taken a product to the market before, you need a coach to help you get over the hurdles and past the many pitfalls. Be persistent, be smart, and gather the right information before you make your next move”. Mark can be found at http://productcoach.com.

Related Information:
Prototyping into a Working Form
Prototypes provide a Pathway for Connecting with Customers
Your First Prototype is with Pen and Paper
Why Prototype? Customer Interactivity is the Most Meaningful Part of Design

Friday, February 17, 2012

Should you Organization start Thinking like an Architect?

We accept that Architects have an ability to design pleasing structures. I feel another part of their repertoire is equally as important; It is the ability to visualize the change needed between current and the future state and to successfully chart the path for evolving to it. You may believe that these traits are common in organizations through engineering, project management and operations but Architects do it a different way. They do it through the lens of design.

How do Architects think? A study, Thinking like an Architect. by Kyle Gabhart explores the subject of architects and how they view and ultimately solve problems.

The overwhelming indication here is that building-style toys (LEGOs, blocks, Lincoln Logs, etc.) were a favorite toy of those individuals that eventually grew up to become architects. Could it be that the abstract thinking and pattern-recognition that is inherent in building-style toys was already being developed and enhanced at such an early age? The second contender is board games, which has a strong component of rules sets and also pattern-recognition. Here again, the impressionable mind of the future architect may already be creating mental categories, placeholders, and thought patterns for future architecture activities.

LEGOs is not that surprising but another part of the survey listed these results:

  • 53.08% of respondents studied / trained with a musical instrument
  • 36.97% pursued mathematics studies beyond the basics required by a degree program
  • 22.27% engaged in formal singing activities, including music theory and sight-reading

What does that tell us? A background in music may mean a great deal of regimented practice and the ability to take instruction. In combination with LEGOs it shows the ability to build on an existing process and achieve future results. It may also say a lot about teamwork, since many that play music in high school participate in the band. 

Architects offer traditional core services but they also balance human, technical and business factors as well, managing these factors to achieve their outcomes. Architects build and coordinate teams from a variety of services. Just doing this within our own organizations seems insurmountable at times. Think about outsourcing your entire business?

Our products/services are increasingly become more strategic. We must enable the use of our product/service to serve clients more effectively and to increase customer engagement. Architects add a great deal of value to this thought process. They have always started with customer engagement in their design practice. Design is not an afterthought, it is the reason for engagement. There is no such thing as features and benefits at this point. That only comes through a definition of the needs of the clients. Interesting? 

Tomorrows podcast is with Zachary Evans, an architect and partner at Kelty Tappy Design, Inc., a Fort Wayne architecture, planning, and urban design firm.

Related Information:
Define the Expectation, Delight the Customer
Lean Engagement Team Book Released
How to Design like an Architect
Co-Creation and Open Innovation from HYVEinnovation
An Architects view of Prototyping and Modeling

Saturday, February 11, 2012

Lean Sales & Marketing Summit Announced

I am honored to be included on the same agenda with noted author, speaker, and lean pioneer Bill Waddell. On April 17th, Bill will be presenting
Aligning the Entire Organization to Achieve the Sales Strategy. He will show you how to devise a sales and marketing strategy built around creating the most value for your customers; how to set prices strategically, rather than on the basis of standard costs, assuring that prices will not cause you to lose a sale. We will align the entire company around assuring the success of the sales strategy, with a focus on maximizing value for your customers and using lean tools to eliminate everything that is not contributing to the prices you charge.  When we are finished you will see a clear and practical path to devising a practical plan to creating and accomplishing a sales and marketing strategy, and succeeding not by becoming the lowest cost and price competitor, but by becoming the highest value source in your markets.

The next day, I will be presenting Using Lean to Create Repeatable and Scalable Sales and Marketing Systems: A Customer Centric Approach Through Lean. The workshop will be two-thirds presentation and one-third interactive exercises. A partial listing of the subject matter:

  • Why value can no longer be defined by what the customer will pay for.
  • The New Rules of Marketing in a Demand – Driven World
  • The Marketing Gateway of EDCA > PDCA > SDCA
  • Lean Engagement Team
  • Leader Standard Work for Sales and Marketing
  • Achieving Mastery

leansa1

All Participants will receive a Marketing with Lean workbook to include a CD that will contain the four published books in the series; Lean Marketing House, Marketing with PDCA, Marketing with A3s and The Lean Engagement Team.    

  1. Learn how Lean Sales and Marketing is essentially a knowledge transfer system; it's a training system on how to define knowledge gaps and close them. Not from the perspective of educating the customer but from the perspective of learning from the customer and understanding how your customer uses and benefits from your product or service.
  2. Learn how to let your customer be the professor, the Sensei, who will take you through their decision making steps and how to improve your reactions to these steps in a systematic way.
  3. Learn how to apply the Marketing Gateway of EDCA to PDCA to SDCA. 
  4. Learn how Leader Standard Work is the foundation of Lean Sales and Marketing and the fundamental process that replaces the "Silver Bullet" found in most typical marketing jargon.
  5. Learn how to take responsibility for finding and creating demand.
  6. Learn what makes Lean Sales and Marketing so incredibly powerful.

Lean Sales and Marketing is built upon the philosophy that there has been a subtle shift to knowledge as the way to engage, develop and retain your customer base. Your Lean Engagement Teams must act as a vehicle to cultivate ideas not only within their four walls but more importantly from their customers and markets. Successful Sales and Marketing departments are no longer just responsible for getting the message out but also for developing strategies to get the customer’s message in. The ability to share and create knowledge with your customer has become the strongest marketing tool possible. Lean Thinking is the fundamental process needed to achieve this but it must be viewed from the demand side of the supply chain. We no longer live in a world of excess demand and supply side thinking is no longer valid. Learn how to change your mindset and bring continuous improvement to your sales and marketing through Lean. Join me in Indianapolis on April 17th to listen to Bill and stay the following day to participate with me on April 18th.

The host of this event is Lean Frontiers. They provide high-quality, laser-focused events aimed at integrating organizational silos in support of the lean enterprise. These focused events provide an ideal venue for like-minded professionals to explore the common issues they face in supporting lean. Upcoming Workshops will held in Fishers, IN (Indianapolis Suburb).

P.S. If you buy the book series before the event and attend, I will refund the purchase. Marketing with Lean Series – 4 Pack.

This event will sell out!

Thursday, February 9, 2012

How do you handle inputs into your life? Do you process them effectively and efficiently?

The book A Factory of One: Applying Lean Principles to Banish Waste and Improve Your Personal Performance demonstrates how to apply lean principles to the individual.  It delivers key concepts such as visual management, flow, pull, and 5S. Dan provides these concepts to the individual results in the same kind of benefits: greater efficiency, less waste, and improved focus on customer value. The author, Dan Markovitz is the founder and owner of TimeBack Management, a consultancy specializing in improving individual and organizational performance through the application of lean concepts. 2A-Factory-Of-One

These concepts will be very familiar to people knowledgeable with continuous improvement and more specifically Lean and Six Sigma. However, you do not have to be a practitioner to understand or read the book. When trade terms are used the authors explains them in simple everyday language without losing a beat. Few people other than Dan could have provided a book of this sort. His experience with Lean coupled with many years of providing guidance on individual performance has given him profound insight. There may be others with his depth of knowledge but few that can transfer it into simple, practical and useable information. I found myself reading a “how to” book like a novel. I had to remind myself more than once to bend a corner or mark a page for future reference.

Dan is also not shy about crediting or highlighting others when it fits the application. He spends time discussing Personal Kanban and how he looks at applying it. My favorite part of the book was the part on living in your calendar versus your inbox. That comment in itself added a few more minutes of productivity to my day. His A3, Value Map and Information 5S were absolutely flawless.

Are you going to get 2 hours a day of time saving tips from the book? I doubt it. What you will get is more productivity and feeling better about what and how you accomplished it. It was my New Year’s Day read and I have picked it up every day since then. Not saying you won’t be able to put it down but at this point it looks that way for me.

Related Information:
The SDCA Cycle Description for a Lean Engagement Team
The Resilience of PDCA
Lean Canvas for Lean EDCA-PDCA-SDCA
Successful Lean teams are iTeams

Friday, February 3, 2012

Inspiring Innovation thru Standard Work

Standard work should be an enabler of innovation, not a hindrance. In an upcoming Business901 podcast with Terri Griffith, we will take a look at a few of these principles and find out why it is so important to access where you are at before venturing into the unknown. In the premier show of Innovators Exchange, Tad Milbourn, senior product manager of Intuit Brainstorm, speaks with Terri Griffith, author and professor of Management at Santa Clara University. Tad and Terri discuss her new book, The Plugged-In Manager and the role that a plugged-in manager can play in inspiring innovation. It serves as an excellent preview to the podcast.

Related Information:
The importance of PDCA in Marketing
Even Seinfeld used Standard Work
The SDCA Cycle Description for a Lean Engagement Team
Is your Innovation a Gateway for Others?

Six Sources of Influence in Change

From my blog post, The Difficulty of Mastery = The Difficulty of Lean, I started discussing the book, Change Anything: The New Science of Personal Success clip_image001. I found the work paralleling Lean in many of its approaches and put Lean practices in parenthesis. Their strategy is based on four simple steps:

  1. Identify Crucial Moments (Identify Value)
  2. Create Vital Behaviors (Map Value Stream)
  3. Engage All Six Sources of Influence (Create Flow – Enable Pull)
  4. Turn Bad Days into Good Data (Seek Perfection - PDCA)

I stopped short of discussing the six sources of influence and have included them here:

  1. Personal Motivation
  2. Personal Ability
  3. Social Motivation
  4. Social Ability
  5. Structural Motivation
  6. Structural Ability

I am going to use a different perspective on these influences looking at it from a perspective of an organization trying to change and using Lean and my own thoughts to orchestrate the change.

changeOrganizational Motivation will never persist without the change being tied to the marketplace. Dan Jones recently wrote in the blogpost, How can Lean Survive that “The best chance for lean to survive a change in top management is if it is seen to be delivering significant results, not just point improvements in key processes but bottom-line results for the organization as a whole, which would be reversed if support for lean disappeared. I disagree with the statements that you just have to accept that it is going to work and not expect results. Results are the motivating factors.

Organizational Ability requires learning new skills if you are going to change. If change is difficult we will take the path of least resistance. Mastering a new set of tools is never easy and that is why Lean is so powerful. Lean is based on standards, knowing how the process should work because if it’s clear, then when we see a variation from the process we can react immediately. This allows us to choose one problem from the other and just solve them one by one. This is incredibly powerful because with lean systems we rely on increasing our competency, increasing our training without having to take people off line, without having to get to classrooms, but by building it into the way we work.

Social Motivation and Social Ability go hand in hand. Employees, Suppliers, and even Customers would rather you not change. They want to deal with the known. Even voters will vote for someone that they know and disagree with over the unknown. You have to re-define the norm for example through Value Stream Mapping or an A3. You have to get those around you on board with the new ideal or without you will fall victim to those old tired out ways that have become ineffective. Surround yourself with willing partners that will push you to this new ideal. This is sometimes where a consultant can play a role.

Structural Motivation can be difficult in organizations since external goals are difficult to recognize. We can see internal improvements sometimes immediately. But these internal improvements may not result in the needle being moved in the marketplace. An effective motivator may be the fear of loss. Can you tie lost market opportunities to your change efforts? Can you demonstrate even the smallest of wins? If you can, it will significantly increase the odds of success.

Structural Ability small changes in your environment have a surprising effect on your choices. This is where Lean plays such a huge role in change. Lean is not rigorous. It uses visualization and it’s a readymade tool set that reduces the resistance to change. What Lean does require though is rigorous use to be successful.

Lean is a change tool but it is not a cure all. Dr. Balle said in an interview with me, “Lean is not a revolution; it is find one problem and solve one problem.” I wish you the best on your journey of change!

Related Information:
Inspiring Innovation thru Standard Work
Value can no longer be defined as What a Customer will pay for!
The importance of PDCA in Marketing
Even Seinfeld used Standard Work