The 2012 American election season is humming, Dem and Republican party activists have been pulling out all the stops for November. These days, cutting-edge software packages are borrowing techniques from the worlds of marketing and retail to let election campaigns analyze the daily lives of voters in minute detail. A series of new products have recently been released that make microtargeted junk mail--and swaying voters--as easy as cake. Some products are aimed squarely at Republicans; others at Democrats. Other products are party-agnostic and designed for whichever campaign will pay the right among of green. Either way, it's big business.
VoterMapping.com is one of the most interesting party-agnostic campaign tools out there. A product of voter data clearinghouse Labels and Lists, VoterMapping.com is a web-based, subscription product that allows campaigns to instantly browse household-by-household voter data via the Bing Maps API. Consultants, pollsters, and others can view millions of data points (purchased separately from Labels and Lists or third parties) in real time. Voter registration data is included; using the website, users can instantly see the names and ages of residents, voting habits, likely ethnicity, and other data points in real time across homes, neighborhoods, and voting districts without any lag or downtime while data processes.
“The combination of the most accurately processed voter data available and the speed of the geo-spatial visualization gives users unprecedented analytical power. It gives consultants the ability to micro-target in minutes and actually see the results instead of combing through pages and pages of spreadsheets. No other technology can pan through millions of voters at the speeds VoterMapping.com does,” Labels and Lists'.
Another major political tech provider to both Democrats and Republicans is the partnership of Aristotle and Intermarkets, who offer campaigns software packages for fundraising, advertising placement, and political microtargeting. Although Intermarkets comes from a decidedly conservative and Republican neighborhood--their ad network is centered around right-wing stalwarts such as the Drudge Report, Ann Coulter, and Michelle Malkin—they have also been aggressively offering their services to Democratic campaigns. Intermarkets has separate marketing teams targeting Democratic and Republican campaigns; chief marketing officer Michael Loy told industry publication Campaigns and Elections that “I think our approach is similar to Google or Facebook […] We take a nonpartisan approach to technology, but there are partisan aspects to the staffing we’ve developed. It does allow our reps on the ground to interact with clients at a partisan level.”
While Intermarkets is an example of a GOP-connected firm that's targeting Democratic candidates, NationBuilder has Democratic roots, but has been pitching their voter-engagement platform to Republican campaigns. The service, which makes its profits through a subscription-fee base that's supplemented by high-cost email and SMS text message blast fees, pitches to candidates from both major parties. Although the company's meat-and-potato clients are labor unions and Democratic campaigns, Mashable reported in July that NationBuilder signed an exclusive contract with the Republican State Leadership Committee, which bought NationBuilder's services to approximately 7500 Republican candidates for state office nationwide.
Other political software firms instead find it useful to be expressly partisan. NGP VAN specializes in fundraising tools for Democratic campaigns, and newcomers DSPolitical are the self-proclaimed “home of the political cookie.” DSPolitical helps Democratic campaigns offer internet users microtargeted political advertisements based on their web surfing habits.
Meanwhile, the right-wing sibling team of Charles and David Koch are allegedly bankrolling an ambitious conservative political technology project called Themis. Themis, which has no website, was the subject of a recent Reuters article, which claims the firm is working on high-end data modeling for Republican campaigns. Another Republican-leaning technology firm, i-360, specializes in data analysis for right-wing campaigns.
The Republican National Committee itself is also directly involved in election tech. In August 2011, the RNC established Data Trust, another website-lacking project, to manage their voter database. Data Trust is overseen by former RNC officials to finetune voter outreach effort through the kind of marketing analytics usually used by big box and online retailers.
The future is already here--it’s just not evenly distributed perfectly captures the increasing divide between the social sector and the rest of the world. The future is already here for the mainstream global economy, built on open data, mobile and social connectivity, and the wisdom of crowds. The social sector, by contrast, is showing few signs of the future, continuing to operate in an increasingly outdated paradigm that places a premium on control; a reliance on experts and one-way communication flows; and exists purely in the physical world.
The orientation of most of the social sector is akin to that of a crew team during a race--furiously rowing to reach its goal, all the while with its back to the future. In today’s environment, with even greater demands on already stretched budgets, high-performing, public-purpose organizations should be asking themselves how these five transformational forces--forces that should be driving the social sector into the future but aren’t--can change the way they work.
As the central vehicle that individuals--regardless of race, income, and age--use for information, social connectivity, and more, the mobile phone has become a platform for infinite innovation. Because of the mobile device, Information is now portable, participatory, and personal.
Scores of businesses are fully aware of the transformative nature of this tool and are innovating with it. Over 600,000 apps have been developed in the last three years. They have been downloaded 10.9 billion times. If Instagram can attract 80 million users who share 4 billion photos, why aren’t we seeing more creative uses of these technologies to tackle unemployment, increase government accountability, and improve the scope of social services?
Ushahidi--an open-source software platform that lets users “crowdmap” information in real time via text messages--is an example of what is possible when mobile phones are deployed for social change. Ushahidi was developed in Kenya in 2008 to map reports of post-election violence when almost all other media was down, and it has since been deployed around the world for disaster relief, election monitoring, and documenting human rights and environmental violations.
Today, there is a new 'social operating system’ that is in stark contrast to the one that was built around geography and small tight-knit groups. People--connected by Facebook, Twitter, YouTube, and online discussion forums--are now part of broad, loose, and complex networks that readily share information and mobilize.
We have seen how these technologies can be used to drive social movements and democratize the creation and dissemination of information, from Occupy Wall Street to the Arab Spring. And the proliferation of the largely online sharing economy is creating new marketplaces that connect people to everything from transportation (Zipcar) to accommodation (AirBnB). The private sector is recognizing that the future requires them to rewire their business models to account for these shifts in how people buy, share, and communicate. Why aren’t these technologies being used to better connect people to child care, social services, and jobs in new ways?
From the Twittersphere to the wealth of available government data, more data is being created and harnessed today than ever before. The great promise of Big Data is that it can become “humanity’s dashboard" providing us with better ways of understanding ourselves and determining where our resources should be concentrated to make the biggest difference.
Today, businesses spend more than $5 billion on consultants to help them harness Big Data’s power to better understand their customers, dynamically alter pricing based on real-time demand, and even change their business models.
The social sector’s use of Big Data is nascent. There is great promise in civic tech, or the building of apps based on public data. This movement has resulted in real-time bus schedules and virtual land-use planning. However, one can imagine many more transformational applications that could benefit low-income people, from altering the relationship between police and neighborhoods to enabling online enrollment for public benefits.
Big Data is not only relevant to municipal governments--social sector organizations can also leverage it to enable more accurate impact evaluation, identify needs of target populations, and understand possibilities for new business models to serve low-income communities.
Historically, social change organizations in America have been slow to embrace technology, often citing cost as an excuse. Yet across the developing world, the concept of "frugal innovation" is being applied to create lean solutions that deliver improved or previously non-existent services by stripping down products to the level of basic need and identifying imaginative ways of using old technology.
Companies big and small are taking note of the opportunity to provide affordable goods and services to the poor and recognize frugal innovation as the way to do it. In India, this led to the $2,000 Tata Nano car. And through cheap, stripped down mobile phones, financial services have been extended to previously unbanked populations. For example, 70% of financial transactions in Kenya are now handled by M-PESA, a mobile money platform.
Not surprisingly, the conversation about frugal innovation is largely focused on the developing world. Yet wouldn’t the same principles be valuable in the United States, where we continue to struggle with a digital divide, unaffordable health care, and inefficient service delivery?
The business community has realized that going it alone in a hyperconnected, globalized economy is counter-productive. Today’s challenges are too interconnected and complex for any one organization or sector to address on its own.
Two key results of this new way of working are not in the DNA of the social sector but need to be: letting go of information and the invention of new collaborative problem-solving mechanisms to achieve larger goals.
Today, organizations are using crowdsourcing platforms to leverage a distributed virtual labor pool. InnoCentive, a platform created by Eli Lilly to tap into the wisdom of customers, partners, and others, is a great example of how the business community is giving up what was long considered proprietary information in order to solve problems.
Letting go of information is also about recognizing the importance of being part of a problem-solving network. In today’s world, influential members of those networks must harness technology to share ideas, get real-time feedback, and build collective knowledge.
The longer it takes for the future to come to the social sector, the greater the gap will grow between wealthy and poor communities. Billions of venture capital dollars and thousands of organizations are working in the mainstream global economy to profit from the future every day. The same level of commitment from public and private organizations committed to a more just society is needed now more than ever.
The way is to disrupt your industry is to attune your ear to what people (i.e., your potential customers) are saying. Countless innovation books underscore the importance of studying context and behavior to unlock untapped market potential. And they’re right. Identifying market norms and untested constraints, situating products and services in the broad landscape of the customer’s day-to-day life, and understanding the triggers, motivations, and influences on people’s behavior all contribute strongly to an organization’s ability to innovate.
Not to say that creating a disruptive product is easy. Even the most innovative companies struggle to identify disruptive innovations more than once or twice. But if you want to completely shake up an industry, the best approach is to develop a deep insight into some group of people--customers or non-customers, buyers or influencers.
Even though we’re looking to create something unconventional, our current customers speak to our core strengths. They’re also typically the most accessible and usually the most friendly. Look to understand this group’s activity and the motivations for their behavior. Pay attention to how your product or service fits into their day-to-day activities. And look for the workarounds they’ve put in place to integrate your product/service into their lives. Addressing the cause of these workarounds might help to unlock a lot of value.
What is your customer trying to achieve? When you look at your customers’ behavior, you may find opportunities you wouldn’t have otherwise seen.
The challenge for the designer is to find them, even though people tend not to mention them or even notice them. They show up as patterns: repeated comments and observations, often off-hand. The customer simply accepts them as part of the inherent frustration of the activity.
Designing in concert with the behaviors of your customers and the context within which their activities take place leads to opportunities for unconventional thinking and disruptive innovation. But that often requires looking beyond the obvious and staring directly into the blind spots of our accepted norms. By understanding what drives behavior and why, and working with business owners to challenge conventions, interaction designers can continue to have an enormous impact.
In basements, garages, startup spaces, and university laboratories, DIY researchers, scientists, programmers, and neurologists are collaborating on brain interfaces that can control video games with human thoughts. They’re growing flesh that’s augmented with transistors and implanting Bluetooth sensors under their own living skin to send vital signs to mobile phones. They’re growing in-vitro edible steaks and leather without using living beings. They’re even helping severely disabled individuals speak using only their brainwaves. And most of them still consider this a hobby.
The grinders (DIY cybernetics enthusiasts) and their comrades in arms--biohackers working on improving human source code, quantified self enthusiasts who arm themselves with constant bodily data feeds, and independent DIY biotechnology enthusiasts--are moonlighting for now in basements, shared spaces, and makeshift labs. But they’re ultimately aiming to change the world. Think of how bionic legs like those belonging to Oscar Pistorius and cochlear implants that let the deaf hear have changed everyday life for so many people. Then multiply that by a million. A million people. And millions of dollars.
Not only has the new wave of do-it-yourself (DIY) cybernetics moved well beyond science fiction, it’s going to cause a business boom in the not-too-distant future.
West Coast biohackers and grinders were the pioneers of this tech-driven, California brand of utopianism. They’ve taken a big tent approach to their goal of hacking humanity: Paleo diets and meditation are just as likely to figure into things as cybernetic finger implants or controlling computer apps with brainwaves. For biohackers everywhere, augmentation of humanity itself--whether through technology or more traditional methods--is the primary goal. Common conversations points include DIY cyborgs, the quantified self and diet- and meditation- based improvement movements.
But a growing community on the East Coast--in greater New York, Boston, and Pittsburg--is synthesizing Silicon Valley's entrepreneurial DNA for it's unique innovation model. Experimentation and science here is not only an exercise in advancing humanity through tech but is often is applied toward creating viable cybernetic products for the market.
In New York City, biohackers are united by the extremely active Biohackers NYC Meetup group and several startups, incubators, and workspaces scattered across the outer boroughs.
Just a few hours up I-95 at Harvard University, researchers have created the world's first cyborg flesh. They have successfully created rat flesh that is seamlessly melded with a network of wires and transistors that monitor the individual behavior of each cell. Harvard's groundbreaking research integrated electrically active scaffolds into rat cardiomyocytes, or heart muscle cells. Incredibly small wires and transistors were embedded in scaffolding made with collagen and wires; using the cybernetic tissue, researchers could keep track of the minute behavior of cells during drug reactions. Harvard's experiment is far more than just the weird science of creating cybernetic rats, though. In the future, projects built on this technology could be used to do away with animal or human testing for drugs, and to create cybernetic implants to repair damaged hearts.
Another project, the Heleed, is a cybernetic medical tracking device. Users implant the Bic lighter-sized device in their body, which then automatically sends biomedical information to the internet via a Bluetooth interface. The strictly experimental Heleed can also be programmed to display health warnings--sent to the recipient via an Android app--on the user's skin with LED lights.
One of the biggest boom areas for the DIY cybernetics community is controlling software and applications with brain waves. Crucially, it is the one technology for which we currently have robust development tools and a price point which allows hobbyists to easily experiment. Brain-computer interfaces are increasingly commonplace; in their most common commercial incarnation, users control computer software--most frequently games or simple applications--with brainwave-reading electrodes.
There is an undeniable science fiction factor to the idea of DIY cybernetics such as the robotic
exoskeleton for paraplegics. However, one important thing has to be remembered: Man and machine have been merging for a long time. Cochlear implants and bionic legs are just the latest in a long long of human augmentation that ranges from pacemakers to eyeglasses.
These technologies aren’t just for the future either; they’re being monetized and put to market on a mass scale today. Austrian firm g.tec released a product for patients with motor disabilities that lets them spell words using their brainwaves. Using the product, users who have severe difficulty communicating otherwise can attain a spelling rate of 5 to 10 letters per minute.
20 or 30 years from now, we’ll likely look back on the biohacker and grinder communities like we currently look back on Silicon Valley, Stanford or Harvard when dedicated hobbyists and small business people built software and computers in garages and small offices and founded companies such as Apple and Google.
A trend that I have noticed is that nearly every book I’d seen in the last year, never say what they’re about. Almost as a rule, hardcover books (and increasingly e-books) favor laudatory blurbs over descriptions--opting for short quotes from important authors, CEOs, or media outlets to make their case.
Wouldn’t it be better to use that space to describe the contents of the book? Isn’t that what customers would want? Why bury the content on the inside?
I was missing a fundamental change that has occurred in the publishing business, particularly for authors. Faced with declining sales and the disappearance of book retailers like Borders, authors have diversified their income streams, and many make substantially more money through new business generated by a book, rather than from it.
Today, authors are in the idea-making business, not the book business. In short, this means that publishing a book is less about sales and much more about creating a brand. The real customers of books are no longer just readers but now include speaking agents, CEOs and startups.
For an author looking to break into this market, it wouldn’t be about courting critics or seeking award nominations. Rather, their book needs to prove that they are an interesting or with relevant ideas.
Many authors I spoke with were discovering similar niches. For instance, in Silicon Valley, authors have parlayed books into gigs as advisors to startups that need their expertise in certain areas. The author takes a small equity stake in the company in exchange for this advice.
Books and articles for writers of the 21st century have become billboards for the messengers. This equation profoundly changes the publishing game, from the way books are designed to the way they are written--and who writes them.
It also explains why books have blurbs instead of descriptions. It’s far better to brand a book with names like Peter Thiel, Seth Godin, or Malcolm Gladwell via positive blurbs than with a rousing or intriguing summary.
Call it a business card, a resume, a billboard, or whatever you choose, but the short of it is that books are no longer just books. They are branding devices and credibility signals.
When Thomas Watson Jr. told Wharton students that good design is good business, the idea seemed quixotic, silly even. To many people, design still meant the superficial polish of nicer homes and cleaner graphics. But Watson had earned the right to his beliefs. The recently retired IBM CEO was a business oracle, having grown the company tenfold during his tenure by transforming its signature product line from cash registers to computer mainframes. Along the way, the perception of IBM had changed irrevocably. Once rooted in the grime of cogs and springs, they had become the face of a new computer age. And as IBM transformed, it became synonymous with the rise of modernism. Logos and buildings, nice as they were, weren’t central to how IBM actually made money--not compared with the engineers who were figuring out how to build ever more powerful mainframes. Back then, design was marketing by another name. The design and business symbiosis that Watson was advocating at the time was more prophecy than reality.
Only now, 19 years after his death in 1993, is Watson being proved right. Innovation today is inextricably linked with design--and design has become a decisive advantage in countless industries, not to mention a crucial tool to ward off commoditization. Companies singing the design gospel range from Comcast to Pinterest to Starbucks. You will see dozens of them in the pages that follow. But why now? What makes this moment different?
Apple’s rise offers a few important lessons about today’s connection between design and business. The easiest is that design allows you to stoke consumer lust--and demand higher prices as a result. That shouldn’t be a surprise to anyone who owns a $600 iPhone, but Apple’s model suggests some harder-to-digest lessons. One is the value of thinking of product systems rather than solely products. An instructive example comes from Frog, the design consultancy that fashioned the case for the legendary Apple IIc. Today, one of its marquee clients is GE. You might wonder what design can possibly have to do with the success of a jet engine or an MRI machine. But hospitals and power plants are now linking their machines into ecosystems. And well-designed iPad apps are the simplest way to manage them. Our hypothesis is that we can build a better solution. Designers are the ones best situated to figure out how a kit of parts can become something more--they’re the ones who can figure out the human interface for a vast chain. If they do their job right, the result--a working ecosystem--is a far better platform for innovation than an isolated product. Just think about Apple and how its products have expanded from iMacs to iPods, iTunes, iPhones, and iPads, all linked via its iCloud.
Innovation usually cycles between periods of raw, technical inventiveness and the finer task of packaging it for mass adoption. In personal tech, for example, we’re in an integration phase that comes on the heels of fundamental advances such as the Internet and mobile computing. With back-end magic becoming a cheap utility, user interfaces are now a startup’s best chance to break out.
Consider Bump, an app that lets users swap data between phones simply by bumping them together. In our app economy, everything has changed. Bump had 1 million users before it spent $4,000. It didn’t need infrastructure, thanks to Amazon’s server-hosting service; it didn’t need advertising because of social media; and the App Store solved any distribution problem. Development was a breeze, too, because of Apple’s software developer’s kit. "These are all things that used to cost millions.
Although these dynamics seem specific to the tech business, they’re analogous to what happens in any maturing industry. The back-end nuts and bolts eventually fade as a competitive advantage: Your manufacturing prowess, once a reliable bulwark, moves to China; your distribution channels, once the best, are now beaten by the Internet. When that happens, how can you sell anything--from a new thermostat to a new passenger plane--without fundamental design improvements that prove their worth to consumers with every use? And whom do you trust to cultivate that relationship between your product and your customer? An engineer? Or a designer? Silicon Valley is currently engaged in an all-out talent war over designers
"Product guys," rather than engineers, steer many of the startups that draw the greatest buzz. "The market for engineers is always white-hot. But for designers, it’s hotter,"
When designers lack influence, superb products become almost impossible. Good designs seldom stay good for very long if they must navigate a gauntlet of corporate approval. That’s because the design process is as much reductive as anything else--figuring what can be simplified and taken out. Corporate approvals are usually about adding things on to appease internal overseers. When something has been approved by everyone, it may be loved by none. Just look at what happened to Microsoft in the 2000s and how only now is it trying to redefine itself by building a more design-driven culture. That culture spawned Windows 8, whose design intent has remained remarkably pure from beginning to end.
The main question remaining for VCs and old-line companies alike is whether design can deliver a sustainable edge. There’s reason to think that it can. Unlike a few more features or marginal increases in computing speed, a better user experience can mean everything. VCs are starting to see that having designer founders pays off in the long run. A reliance on design-driven innovation poses a challenge for the companies that live by it: You can’t easily patent how something looks, or the feel of a user interface. Features, subtleties, and finishes spawn imitators with unprecedented speed. That means that design-led companies must innovate constantly to maintain their edge.
Microsoft, having stagnated as Apple turned the vision of perfectly integrated software and hardware into an ocean of cash, now has its own road map in place, aimed squarely at the evolving future of mobile computing. The central plank of that strategy is a radical redesign of Windows 8, built for the touch-screen revolution and ready to power Microsoft’s first major foray into hardware, the Surface tablet. For Microsoft, the question is, how intuitive will users find Windows 8? Natural enough that it won’t suffer the disastrous fate of Vista? Strong enough to withstand the critiques that inevitably follow from rethinking one of the most heavily used products on the planet?Design isn’t being looked at as a solution to only business problems. Its practitioners are now taking up roles that used to be dominated by not-for-profits and governments, seeking new ways to raise the fortunes of the developing world.
Once a brand has been established, one option for growth is to stretch itself into different categories. This usually takes the form of extensions--new, spinoff products that seem like natural outgrowths of what’s come before. That’s a tricky business, but to simplify matters, companies could benefit by asking themselves this: "What’s the business of my brand?"
By business, I mean the strategic dimension of your brand that consumers recognize and consider an advantage over other brands. It’s what we call a brand’s extendable equity, and it’s the foundation for finding brand extension success.
But, first we need to take a step back. Many brand extensions fail simply because the philosophy of brand extension is not well understood or implemented correctly.
In essence, a winning brand extension:
So, you can’t just introduce a new variety of the same product; that would be a line extension. It has to be an original product that creates new competition and attracts new consumers. A new flavor of Special K Cereal is a line extension; Special K Crackers is a brand extension.
Successful brand extensions hinge on consumers already knowing your brand’s name. Your neighborhood coffee shop has no equity to extend into K-Cups; Starbucks, however, does.
Something that is concrete or easily communicated can be extended to the new category and there must be a strong reason why a consumer will prefer it over their current brand. Bic’s extendable equity is disposability. They had leverage when it came to disposable razors. Bic perfume, not so much.
In a study conducted by my company Parham Santana, and Dr. Edward M. Tauber, we examined more than 500 brand extensions to discover 10 sure ways a brand can successfully extend. Here, we illustrate five using familiar brands with clearly defined extendable equities.
Under this category, brands offer products that are frequently used alongside with the parent brand. For instance, is Duracell in the battery business, or in the business of long-lasting power? By defining its extendable equity as durability, Duracell has brought to market a line of Duracell PowerMats, a portable cordless charging system that uses "inductive energy transfer" to charge all your mobile devices.
Take a component, flavor, ingredient, scent, etc., that is closely associated with the brand and create a different product where this element makes sense.
Is Old Bay in the seasoning and spice business, or the business of bold fun flavors? By defining its extendable equity as its flavor, Old Bay has created a whole new category of business with a line of frozen crab cakes packed with the distinctive Old Bay seasoning.
You can also change the form of an existing product by modifying its method of delivery, preservation, store placement, or ingredient profile.Take Barilla, which, by defining its extendable equity as “the taste of Italy,” has launched a line of microwavable meals. Barilla is still the brand we love and trust; it just now has a quick-serve solution.
To reverse the fortunes of a brand that has accumulated negative perceptions, incorporate modifier words that repurpose those unfavorables or enhance the applicability of the product to a new category. Clorox may essentially be known for germ-killing but foul-smelling bleach, but recently it announced a line of scented cleaning products called Clorox Fraganzia, which modifies the perception of Clorox and bleach to be both tough and fragrant for a new brand extension and customer base.
Your brand, too, represents many dimensions, and each one represents a unique strategic possibility. These dimensions might include service, expertise, benefits, or ingredients. Your extendable equity might relate to any one of those dimensions. But have you defined your extendable equity and the business of your brand?
The brands above have. They are proceeding from a clear and narrowly defined extendable equity. Durability. Bold Flavor. Really Dirty. Taste of Italy. Bleach. Once defined, they’ve utilized classic brand-extension techniques to find logical new categories of business where they enjoy a competitive advantage. All these brands surround the new proposition with their proprietary credentials, technology, and ingredients to further “bullet proof” the new offering. That’s why they’re exciting and why, I think, they stand a good chance of succeeding. What do you think?
To achieve actual change rather than paper change you need three things: vision, courage and urgency, with the greatest focus on the latter--because talking about change rather than doing it is where most programs come unstuck. We set metrics, a timeline, identified our key stakeholders (primarily in our case staff and clients) and published targets for all to see. It was scary, because metrics and transparency set targets that demonstrate success, but can also highlight failure.
Focusing on actions ahead of words and documents, we held focus groups internally, removed all offices, official processes--even sacrosanct "sign-offs"--and department boundaries, creating a place that allowed people to be the best they could be. We believed that if we did this, breaking the traditional parent/child relationship that exists in most businesses, we would achieve radical change.
And we have. Over the past three years we have transformed our creative output and doubling in size (revenue). Crucially, our staff and client satisfaction scores have also skyrocketed.
Yet the job is not complete. Open positively affects our business on a daily basis, and with the desire to change as strong as ever, continues to drive us forward.
Here, based on our experience, are 10 ways to become Open.
All businesses need to change. This is as true of a small, fast-paced creative business as it is of a global corporate behemoth. The problem is, despite the considerable money thrown at them and the legions of paper theories written about them, most change programs fail.
Strategy is, in fact, the easy bit. Paying for it hurts, but the pain passes. Doing it gets very hard indeed. You need to be prepared for the long road ahead. Only a dramatic shift in culture can yield the best results.
Let’s face it, the ideal moment to change your business--when you’ve got a clear diary, all your clients are happy and there are no major projects in the pipeline--will never present itself. So stop waiting for the right time, just get on with it.
The operative word here is team. You need to put together a genuine and focused group at the top of the business to make change happen. A team who invests effort in collective success and effort in making the team itself work effectively.
Fundamentally, culture is the behavior of management. Too often, people accept change needs to happen, but believe it’s someone else that needs to behave differently to make it a reality. What you do as a manager, not what you say, is what really counts. Only your actions and leading by example will bring about a change in the way your whole organization behaves.
The biggest barrier to change is mobilizing and energizing your workforce, which is likely to be highly skeptical. Your people need to be invited to shape the future of the business, not manipulated to satisfy the needs of management.
At Grey London we invited everyone to a series of day-long workshops to engage staff in developing our new vision and values. The management team didn’t define Open, the talent did. In an Open culture, the role of management is to create a culture that allows every individual to be the best they can be and then focus on removing obstacles and barriers that obstruct this ambition (of which inevitably there are many).
Break habits and make change visible Culture is like concrete, which over time sets into a certain mold. An effective change program therefore needs a degree of physicality. Too much so-called change stays on PowerPoint. To really shake things up, you’ve got to take a sledgehammer to that concrete, but be mindful that, in time, the new way of doing things will also become too entrenched. You need to keep smashing and resetting to keep your culture vibrant and your business energized.
Fundamental to the success of Open is the breaking of barriers, physical or otherwise. So the first big step is tearing down walls: no offices (for anybody) and nobody sitting in departments. Then change your processes to involve all stakeholders throughout a project so everyone not only understands the problem, but takes pride and ownership in delivering the best answer.
Not all change has to be this radical, however. You can achieve a large amount by seemingly symbolic acts. Seen by everyone and felt immediately, symbolic acts can have disproportionate influence.
Open turns the traditional organizational hierarchy upside down, recasting management as mentors. Ultimately, its success lies in the emphasis on the power of the individual and their teams to do the right thing, their way. It allows ambitious entrepreneurs to thrive and be the best they can be.
If you sit in an organization where the seventh floor doesn’t know what the first floor thinks, you can’t change a company’s culture. To combat this kind of malaise, you need to change people’s emotional contract with the organization--we went as far as giving junior executives a place on the board through the creation of "Open Chairs."
You also need tangible demonstrations of trust and devolution of responsibility. For Grey London, the most totemic act was the removal of "sign-offs." For us, sign-offs became a short hand for everything that we believed was wrong about traditional agency ways of working. Sign-offs are about control, but unfortunately, also disempower and imply that only the creative director’s point of view matters. This leads to a slow, dependent culture, frustrated clients and, most importantly of all, less good work.
Open belongs to everyone. It involves everyone. Even clients. Ideas can come from anywhere and anyone, so allow people to adapt the approach as they see fit and launch their own initiatives to promote a culture of collaboration. You’ll find leaders emerge at all levels.
Set ambitious metrics for success and be transparent about what they are. Encourage open and honest feedback and share all the results with everyone. Open is about decisions, action and continuous change. Coupled with ambitious targets and full disclosure on progress, comes the very real possibility of failure. If you’ve fully embraced Open, you will make the wrong decisions from time to time, but as long as you continue to act and make more good decisions than bad ones, your business will move forward fast. Remember, change isn’t linear--it’s lumpy.
At Grey London, implementing a "70% right" approach has served us very well. As General Schwarzkopf once said, “If you’ve waited until you’re more than 70% certain, then you’ve waited too long.”
Too often, change consists of one-off initiatives that are forgotten by employees and abandoned by management. You need to nurture continual change and ongoing collaboration through workshops, training, social events and company-wide challenges.
We lie awake at night worrying "what next?" rather than, "did that work?"
Identify your stakeholders and make sure they see the result of your change program--not just being different, but being better. Not better in the abstract or in a corporate sense, but better for them as individuals.
This applies to all stakeholders and you need to be able to articulate exactly how. From the personal association with a winning team, the potential career development if you’re the client who commissions a breakthrough piece of creative, the rewards that come with working for a successful company, and yes, even just coming to a nice place to work.