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воскресенье, 17 ноября 2024 г.

The choice between insightful and inciteful words

 


Civil society and civility

Non-profit organisations often characterise themselves as being part of ‘civil society’. Civil society has been defined and redefined over many years, but it broadly refers to “a wide array of organisations: community groups, non-governmental organisations (NGOs), labor unions, indigenous groups, charitable organisations, faith-based organisations, professional associations and foundations” (World Bank). As other ‘for-purpose’ and social enterprise models have emerged, alongside entities promoting transparency, sustainability, and accountability, the boundaries for ‘civil society’ have also expanded.

Historically, the purpose of civil society was to achieve eudaimonia – common wellbeing or flourishing. Aristotle used the term to refer to the highest human good, and defined this as the aim of practical philosophy (applied ethics). (Recommended reading: Practical wisdom: The right way to do the right thing, by Barry Schwarz and Kenneth Sharpe, Riverhead books, 2010)

In our interpersonal communications, being ‘civil’ simply means being courteous and polite with each other. In other words, treating others as we would like to be treated. Again, therefore, the term refers to common wellbeing.

Hijacked emotion

As advocates for various causes, non-profit organisations make extensive use of social media and various other methods to engage target audiences, and even to issue ‘calls to action’. Regrettably, sometimes when we appeal to emotions the intended outcome of advocacy action gets lost, with poorly managed emotions taking over.

We see this happening when advocates start attacking opponents (ad hominem arguments) rather than focusing on the issue or problem, and the associated evidence.

Separate the people from the problem

Calibrating our words (as suggested in the header image), whether in a meeting, in social settings, or in the heat of an advocacy campaign, requires some level of mindfulness, along with an unshakeable commitment to ‘the common good’. Even when provoked by personal attacks, we do no good for the cause we represent if we resort to insults and inciteful words.

The four key principles underpinning the negotiating method recommended in the seminal reference Getting to Yes: Negotiating agreement without giving in (by Roger Fisher and William Ury, Hutchison. 1982) are highlighted in the chart below.


The words we use and the ’emotional’ tone we employ (in written or oral forms) will reflect the extent to which we have internalised the principles recommended by Fisher and Ury. Negative emotions tend to impede effective engagement and the capacity to reach agreement. Conversely, positive emotions tend to enable agreement.

The notion that you can’t argue with an angry person applies to both parties of course. Just as you won’t persuade another person of the legitimacy of your views if they are angry, you won’t budge them if you are angry either.

The emotional dimension of negotiation (and advocacy too I suggest) is the subject of a later book by Roger Fisher, this time with Daniel Shapiro – Building Agreement: Using emotions as you negotiate. Core concepts that motivate people form the central themes in this very helpful sequel.


Beyond the arguments based on effective methods of helping people to better align with your perspectives, there are also of course risk management reasons for avoiding insulting or inciteful language.

Our words and actions need to be insightful rather than inciteful.*

*As noted in a previous post, homonyms are words that sound the same but have different meanings. ‘Insightful’ and ‘inciteful’ are homonyms, but they are also an example of homophones (a subset of homonyms), words that sound the same but have different spellings and meanings.

Trolling and cyberbullying

Public health and other advocates have become victims of trolling and cyber-bullying increasingly of late, particularly since COVID appeared. The UK Centre for Countering Digital Hate (CCDH) recommends the Troll Counterstrategy outlined in the chart below.


If you or your team have been victims of trolling or cyberbullying, seek support from local health and cyber-safety groups. In Victoria, the Better Health Channel offers resources and advice on these issues, including links to mental health helplines.


https://tinyurl.com/3b8w7946

четверг, 7 ноября 2024 г.

7 Marketing Books to Read

 

There is a great saying “The person who doesn’t read is no better off than the person who can’t read”. And a marketer who doesn’t read marketing books cannot be named the Marketer.

A lot of new marketing books appear every month and of course, many of them are quite worthless, but that doesn’t mean that every marketing book is that bad.

I personally try to read at least 2 marketing books per month to keep my mind charged with new knowledge or revise something I’ve learned before and need to give it another try.

I know that reading for many people is as painful as climbing a rock with someone sitting on their back, but once you try to schedule your reading, define some certain time per day to read at least 20-30 minutes, then you’ll see that you’re starting to get more fun and better results.

I’m not going to teach you how to start loving reading, I’m going to share with you 7 great marketing books that you have to read in 2019 to become a better marketer and implement some new marketing things into your business to increase your sales.

UnMarketing: Everything Has Changed and Nothing is Different


UnMarketing shows you how to unlearn the old ways and consistently attract and engage the right customers. You’ll stop just pushing out your message and praying that it sticks somewhere. Potential and current customers want to be listened to, validated, and have a platform to be heard-especially online.

With UnMarketing, you’ll create a relationship with your customers, and make yourself the logical choice for their needs. We know you’ve been told to act like other people, talk like other people, and market like all the people, but it is time for you to unlearn everything and start to UnMarket yourself.

UnMarketing includes the latest information on:

  • Idea Creation
  • Viral Marketing and Video
  • Marketing to Millennials
  • Authenticity
  • Transparency and Immediacy
  • Ethics and Affiliates
  • Social Media Platforming
  • UnPodcasting
  • Word of Mouth
  • Customer Service
  • Consumer Advocacy and Leadership.


Whether you’re just starting out or are an experienced entrepreneur, The 1-Page Marketing Plan is the easiest and fastest way to create a marketing plan that will propel your business growth.

In this groundbreaking new book you’ll discover:

  • How to get new customers, clients or patients and how to make more profit from existing ones
  • Why “big business” style marketing could kill your business and strategies that actually work for small and medium-sized businesses
  • How to close sales without being pushy, needy, or obnoxious while turning the tables and having prospects begging you to take their money
  • A simple step-by-step process for creating your own personalized marketing plan that is literally one page. Simply follow along and fill in each of the nine squares that make up your own 1-Page Marketing Plan
  • How to annihilate competitors and make yourself the only logical choice
  • How to get amazing results on a small budget using the secrets of direct response marketing
  • How to charge high prices for your products and services and have customers actually thank you for it


This book brings a sense of humor and a strong dose of practicality to business promotion. It’s a book that’s as practical as the competitive Marketing for Dummies 2018 but more fun to read, with not just to-dos but a conceptual framework as what will no doubt be one of the best marketing books of 2019 and no doubt one of the bestselling marketing books of 2019.

Get Scrappy: Smarter Digital Marketing for Businesses Big and Small



Get Scrappy will help you:

  • Demystify digital marketing in a way that makes sense for your business
  • Do more with less
  • Build a strong brand with something to say
  • Find inspiration in unexpected places
  • Create relevant and engaging content and promote it via Twitter, Facebook, and other channels
  • Integrate strategy and message across touchpoints for a unified brand experience-both online and off
  • Spark dialogue with your community of customers
  • Measure what matters

The book features frameworks, hacks, tips, idea starters, and more. Get Scrappy is the map you need to take your marketing from good to great.

Growth Hacker Marketing: A Primer on the Future of PR, Marketing, and Advertising



A new generation of megabrands like Facebook, Dropbox, Airbnb, and Twitter haven’t spent a dime on traditional marketing. No press releases, no TV commercials, no billboards. Instead, they rely on a new strategy – growth hacking – to reach many more people despite modest marketing budgets.

Growth hackers have thrown out the old playbook and replaced it with tools that are testable, trackable, and scalable. They believe that products and businesses should be modified repeatedly until they’re primed to generate explosive reactions.

This book explains the new rules and provides valuable examples and case studies for aspiring growth hackers. Whether you work for a tiny start-up or a Fortune 500 giant, if you’re responsible for building awareness and buzz for a product or service, this is your roadmap.

Content – The Atomic Particle of Marketing: The Definitive Guide to Content Marketing Strategy



Content – The Atomic Particle of Marketing explores how content functions in the broader framework of all marketing, as well as organizational concerns and IT decision making. It demonstrates the value content brings not only to “owned” media initiatives, such as a company website or blog, but also the essential role content plays in all other marketing initiatives, from social media to advertising to offline channels.

It will enable readers to make the organizational, staffing, tools and process decisions necessary to get content up and running across divisions and organizational silos. Deeply researched and insightful, Content – The Atomic Particle of Marketing is, quite simply, the definitive research-based guide to content marketing.

The Lead Machine: The Small Business Guide to Digital Marketing



In The Lead Machine, you’ll discover a simple, straight-forward method for digital marketing called the BARE Essentials of Digital Marketing. 

  • Build – How to create a website that turns visitors into customers.
  • Attract – What are the three most effective methods for driving highly qualified traffic to your site.
  • Retain – How to stay in contact with prospects long after they’ve left your site.
  • Evaluate – How to read and analyze your traffic reports so you can constantly improve your marketing and your conversion rates.

Within each section, you’ll discover the secrets of digital marketing, and how to apply them to your own business. You’ll get answers to questions such as:

  • How do I increase my website conversions?
  • How can I write more persuasive copy that gets people to take action at my site?
  • How do I attract more visitors to my site?
  • How do I get to the first page of Google?
  • How can I come up in local search?
  • How can I uncover which words my customers are using at Google?
  • Where do I put my best keywords on my web page?
  • What are the best plugins for helping me rank higher?
  • How can I use social media to drive traffic to my site?
  • What are the most effective social media channels for lead generation?
  • How much time should I spend on social media?
  • How does blogging improve my visibility online?
  • How does a podcast help my business?
  • How do I create videos for YouTube?
  • How do I attract an audience to YouTube?
  • How do I get YouTube viewers to visit my website?
  • Does Facebook marketing still work?
  • How can I prospect for new business on LinkedIn?
  • What other social media platforms should I be using?
  • How can I use webinars to build my business?
  • How do I advertise on Facebook?
  • What other social platforms can I advertise on?
  • How can I stay in touch with people after they’ve left my site?
  • How do I build an email list?
  • What other digital marketing can I measure?
  • How do I send out mass mailings?
  • How do I install Google Analytics?
  • Does my business need to be on Twitter?
  • How do I find out what pages are most popular on my site?
  • How can I find out what keywords are driving the best traffic?
  • How can I determine where there are “leaks” on my website?
  • How do I know if any of this is working?

If you’ve already read some of the marketing books listed above, you can check the reviews of the books I prepared earlier:


https://tinyurl.com/5n6tvjn8

понедельник, 7 октября 2024 г.

Saul Alinsky’s 12 rules for radicals

 


Saul Alinsky was a very effective organizer and he developed the following rules for getting organized.  It is important to understand all of the tactics that might be called into play on any issue.  These rules are reported many places online but they are repeated here for completeness of this collection.

Here is the complete list from Alinsky.

RULE 1: “Power is not only what you have, but what the enemy thinks you have.” Power is derived from 2 main sources – money and people. “Have-Nots” must build power from flesh and blood. (These are two things of which there is a plentiful supply. Government and corporations always have a difficult time appealing to people, and usually do so almost exclusively with economic arguments.)

RULE 2: “Never go outside the expertise of your people.” It results in confusion, fear, and retreat. Feeling secure adds to the backbone of anyone. (Organizations under attack wonder why radicals don’t address the “real” issues. This is why. They avoid things with which they have no knowledge.)

RULE 3: “Whenever possible, go outside the expertise of the enemy.” Look for ways to increase insecurity, anxiety, and uncertainty. (This happens all the time. Watch how many organizations under attack are blind-sided by seemingly irrelevant arguments that they are then forced to address.)

RULE 4: “Make the enemy live up to its own book of rules.” If the rule is that every letter gets a reply, send 30,000 letters. You can kill them with this because no one can possibly obey all of their own rules. (This is a serious rule. The besieged entity’s very credibility and reputation is at stake, because if activists catch it lying or not living up to its commitments, they can continue to chip away at the damage.)

RULE 5: “Ridicule is man’s most potent weapon.” There is no defense. It’s irrational. It’s infuriating. It also works as a key pressure point to force the enemy into concessions. (Pretty crude, rude and mean, huh? They want to create anger and fear.)

RULE 6: “A good tactic is one your people enjoy.” They’ll keep doing it without urging and come back to do more. They’re doing their thing, and will even suggest better ones. (Radical activists, in this sense, are no different than any other human being. We all avoid “un-fun” activities, and but we revel at and enjoy the ones that work and bring results.)

RULE 7: “A tactic that drags on too long becomes a drag.” Don’t become old news. (Even radical activists get bored. So to keep them excited and involved, organizers are constantly coming up with new tactics.)

RULE 8: “Keep the pressure on. Never let up.” Keep trying new things to keep the opposition off balance. As the opposition masters one approach, hit them from the flank with something new. (Attack, attack, attack from all sides, never giving the reeling organization a chance to rest, regroup, recover and re-strategize.)

RULE 9: “The threat is usually more terrifying than the thing itself.” Imagination and ego can dream up many more consequences than any activist. (Perception is reality. Large organizations always prepare a worst-case scenario, something that may be furthest from the activists’ minds. The upshot is that the organization will expend enormous time and energy, creating in its own collective mind the direst of conclusions. The possibilities can easily poison the mind and result in demoralization.)

RULE 10: “If you push a negative hard enough, it will push through and become a positive.” Violence from the other side can win the public to your side because the public sympathizes with the underdog. (Unions used this tactic. Peaceful [albeit loud] demonstrations during the heyday of unions in the early to mid-20th Century incurred management’s wrath, often in the form of violence that eventually brought public sympathy to their side.)

RULE 11: “The price of a successful attack is a constructive alternative.” Never let the enemy score points because you’re caught without a solution to the problem. (Old saw: If you’re not part of the solution, you’re part of the problem. Activist organizations have an agenda, and their strategy is to hold a place at the table, to be given a forum to wield their power. So, they have to have a compromise solution.)

RULE 12: Pick the target, freeze it, personalize it, and polarize it.” Cut off the support network and isolate the target from sympathy. Go after people and not institutions; people hurt faster than institutions. (This is cruel but very effective. Direct, personalized criticism and ridicule works.)






воскресенье, 29 сентября 2024 г.

Marketing Fishing or “Hooked. How to Build Habit-Forming Products” by Nir Eyal and Ryan Hoover

 


In the modern world, manufacturers constantly produce new products, expand the range of existing goods and try to run more effective marketing campaigns. The consumer faces a choice of what kind of goods to buy from the presented variety. In this situation, the main goal of the seller should be not only the sale or marketing of its products, but also the retention of its consumer. In their book, Nir Eyal and Ryan Hoover describe the Hook Model that teaches the basic principles of consumer habits formation in consumers and consists of four stages: trigger, action, reward and investment.

  1. Trigger

Trigger is a kind of stimulus that causes a person to want to do something. Triggers are of two types: external and internal.

External triggers are some information that attracts the user’s attention and pushes him to perform the required action.

Types of external triggers:

  1. Paid triggers (advertisements, contextual advertising, etc.)
  2. Free Triggers (positive responses in the press, popular viral video)
  3. Triggers of the relationship (recommendations of friends or relatives)
  4. Embedded triggers (always come to the user’s eyes, but he decides whether to pay attention to them).

When consumers have a habit, they are controlled by other triggers-internal. The internal trigger is a certain association fixed in the consumer’s brain and prompting him to act.

  1. Action

The second stage of the model is action. After the consumer received the signal, he must perform the action. Here the rule “it is easier to do than to think” is applied. The simpler the action, the more likely it will become a habit.

  1. Reward

At stage 3, you reward the user, solving his problems and reinforcing the motivation to perform the required action again.

Three types of variable compensation

– remuneration of the tribe – social reward;

– compensation of extraction – the need to extract material objects;

– internal reward.

  1. Investments

The more effort we put into something, the more we appreciate it. We tend to do the same as in the past.

 

Nir Eyal and Ryan Hoover in the book also discuss the ethical application of the Hook Model, since it is associated with a change in human consciousness. For this purpose, the authors propose a manipulation matrix. In order to use the matrix, it is necessary to answer 2 questions: “Would I use this product myself?” And “Will the product significantly improve the life of consumers?”. Answering these questions, you can determine to which type of creators you belong: “helpers”, “hawkers”, “showmen”, “drug dealers”.

After the product is created, then by testing habits you can identify its hot fans, find out what features of the product are addictive and why they do it.

Testing a habit consists of the following steps:

Step 1. Determine. Examine the available data to determine how people behave and how to use the product.

Step 2. Encode. Then systematize the results to identify consumers who have already developed a habit of the product.

Step 3. Change. Change the product to influence more users and push them to the same path as people who have already acquired a habit, then evaluate the results and change the product again.

The “hook” model helps not only to form a habit of a new product/service but reveals weaknesses in an already existing product.

Nir Eyal and Ryan Hoover discuss in detail each step of the model, give concrete examples and cases from advertising and social networks, and also describe some psychological experiments in the field of marketing. The main task of the book is to teach you how to create a habit of the product/service in order to solve the specific problems of the consumer with the help of habit.

Hooked is written for product managers, designers, marketing specialists, start-up founders, and anyone who seeks to understand how products influence our behavior.


https://tinyurl.com/3etrtz7w

понедельник, 26 августа 2024 г.

Lateral Marketing by Kotler

 



The book «Lateral Marketing: New Techniques for Finding Breakthrough Ideas» by Philip Kotler and Fernando Trias de Bes is devoted to a non-standard thinking in marketing. Classic marketing theories continue to play an important role in the market, but nowadays a broader perspective on marketing opportunities is needed.


The authors give many reasons for the fact that existing marketing techniques are no longer so successful, it is connected with the reduction of the product life cycle, and with the revolution made by the transition to digital technologies and with the growth of diversity within the categories of goods and much more. All this only proves that the modern world needs a new approach. Innovation is the key and basis of modern competitive strategies. Innovations can be both from the inside of the market, and from the outside. From the inside of the market, innovations are based on modulation (variation of one of the basic qualities of goods or services, which is to strengthen or reduce this quality), sizing, packaging, design, complements development, effort reduction. But the most effective way, according to the authors, is innovations from outside of the market, such as the creation of a new market or category.

P. Kotler and T. de Bes do not oppose traditional and lateral marketing. They believe that lateral marketing is a complement to traditional marketing. Vertical marketing process is a sequence of steps: identification of needs, definition of the market, segmentation, positioning, development of marketing tools. A vertical marketing process is a logically consistent movement from the general to the particular. Lateral marketing – involves restructuring existing information and moving from the private to the general with a less rigorous thought process – research, risky and creative.

In their book, P. Kotler and T. De Bes attempted to formulate a theory of lateral marketing. They give the following definition of lateral marketing: it is a workflow that receives existing objects (goods or services) at the input and gives innovation goods or services that are targeted to needs, customer groups or ways / situations of use not currently covered ; thus, this process with a high probability leads to the creation of new categories or markets.

The authors propose a scheme for the process of lateral marketing. It consists of three steps and is based on the process of creative thinking:

  1. Choosing a Focus in the Marketing Process
  2. Generating a Marketing Gap
  3. Making Connections

Lateral marketing begins with a product or service. There are two options:

  1. Select the product or service that we are selling.
  2. Choose a product or service with which it is difficult for us to compete.

1 step. Having determined the goods, we must choose the focus in it. For the purposes of lateral marketing, it is necessary to divide all components of vertical marketing into three main levels:

  1. Market definition level (need, target group, mode/situation of use)
  2. Product Level
  3. The level of marketing tools (i.e. the entire marketing mix except for the product).

The second step is to shift the focus, which is located on one of three levels. Here you can select six basic operations:

– Substitution

– Combination

– Inversion

– Exaggeration

– Elimination

– Reordering

Step 3 – establishing a connection or eliminating a gap. For this purpose, an analytical evaluation is performed. There are three ways to assess this: track the purchase process, identify useful properties and find the right situation.

The process of lateral marketing gives three types of results:

  1. The same product, new use
  2. New product, new use
  3. New product, same use

At the present time, when new products are brought to the market with unusual speed, a significant proportion of attempts fail. The book describes a new technique for successfully competing in the market, it allows you to develop new products, find new market niches and eventually make a breakthrough in business. The authors do not reject classical marketing but advise in addition to it to use non-standard ways of thinking.

The book will be useful for those who are going to use lateral marketing in their company, for specialists in marketing and advertising, as well as for those who are interested in unconventional thinking as an ideal way of developing new ideas.

https://tinyurl.com/29xx88vn

суббота, 24 августа 2024 г.

Roger Martin. The Design of Business: Why design thinking is the next competitive advantage

 


Extract from amazon.com :

Most companies today have innovation envy. They yearn to come up with a game—changing innovation like Apple's iPod, or create an entirely new category like Facebook. Many make genuine efforts to be innovative—they spend on R&D, bring in creative designers, hire innovation consultants. But they get disappointing results.

Why? In 
The Design of Business, Roger Martin offers a compelling and provocative answer: we rely far too exclusively on analytical thinking, which merely refines current knowledge, producing small improvements to the status quo.

To innovate and win, companies need design thinking. This form of thinking is rooted in how knowledge advances from one stage to another—from mystery (something we can't explain) to heuristic (a rule of thumb that guides us toward solution) to algorithm (a predictable formula for producing an answer) to code (when the formula becomes so predictable it can be fully automated). As knowledge advances across the stages, productivity grows and costs drop-creating massive value for companies.

Martin shows how leading companies such as Procter & Gamble, Cirque du Soleil, RIM, and others use design thinking to push knowledge through the stages in ways that produce breakthrough innovations and competitive advantage.

Filled with deep insights and fresh perspectives, 
The Design of Business reveals the true foundation of successful, profitable innovation.

The Design of Business: Why design thinking is the next competitive advantage, by Roger Martin was a positive surprise as it was a quick read, well structured, delivered several interesting concepts and some in depth cases on design thinking and business model innovation.

Even though several of the cases are familiar for many readers (such as P&G, Apple, Cirque du Soleil, McDonalds and RIM) Roger, who is dean of the Rotman School of Management at the University of Toronto, professor of strategic management, and author of the book The Opposable Mind, adds interesting perspectives and sometimes information from behind the scenes working as a consultant and advisor. The book is an extension of Roger's popular article (free download) from 2004 with the same name.

The book in three bullet points:

It introduces and explores the concept of the "Knowledge Funnel" describing how knowledge advances from mystery to heuristic, to algorithm for businesses to gain efficiency and lower costs, and the activities of moving across the knowledge stages (exploration) and operating within each knowledge stage (exploitation).

To accelerate the pace at which knowledge advances through the Knowledge Funnel, it presents the concept of design thinking as the necessary balance between analytical thinking using deductive and inductive reasoning (with the need for reliability and the ability to produce consistent and predictable outcomes), and intuitive thinking (with the need for validity and to produce outcomes that meet a desired objective).

It discusses challenges (primarily the results of proof-based analytical thinking) faced by organizations, CEOs and individuals within organizations, to build structures and processes that foster, support and reward a culture of design thinking, and how different CEOs have used different approaches to generate successful outcomes.

A brief summary of the different chapters:


1. The knowledge funnel: How discovery takes shape

The introductory chapter starts with a story about McDonalds journey from mystery (how and what did Californians want to eat) to algorithm (stripping away uncertainty, ambiguity, and judgment from almost all processes). It briefly discusses analytical thinking, intuitive thinking and design thinking, to solve mysteries and advance knowledge, and the fine balance between exploring new knowledge and exploiting existing one.


It introduces and explores the concept of the "Knowledge Funnel" describing how knowledge advances from mystery to heuristic, to algorithm for businesses to gain efficiency and lower costs. This is explored also in later chapters: "Mysteries are expensive, time consuming, and risky; they are worth tackling only because of the potential benefits of discovering a path out of the mystery to a revenue-generating heuristic", "The algorithm generates savings by turning judgment… …into a formula or set of rules that, if followed, will produce a desired solution" and “Computer code – the digital end point of the algorithm stage – is the most efficient expression of an algorithm”.

It also addresses the need for organizations to re-explore solved mysteries, even the founding ideas behind the business, and not get too comfortable focusing on the "administration of business" running an existing algorithm.

In addition, the first chapter presents abductive logic, and some ideas originated by philosopher Charles Sanders Peirce; that it is not possible to prove a new thought concept, or idea in advance and that all new ideas can be validated only through the unfolding of future events. To advance knowledge we need to make a "logical leap of the mind" or an "inference to the best explanation" (or "Leaps of Faith" that John Mullins and Randy Komisar calls it in the book Getting to plan B see review/summary) to imaging a heuristic for understanding a mystery. Free preview of Chapter 1

2. The reliability bias: Why advancing knowledge is so hard

The second chapter focus on the distinction between reliability (produce consistent, predictable outcomes by narrowing the scope of a test to what can be measured in a replicable, quantitative way) and validity (produce outcomes that meet a desired objective, that through the passage of time will be shown to be correct, often incorporating some aspects of subjectivity and judgment to be achieved). Roger's main point in the chapter (or even in the book) is that today's business world is focusing too much on reliability (due to three forces: demand for proof, an aversion to bias and the constraints of time), with algorithmic decision-making techniques using various systems (such as ERP, CRM, TQM, KM) to crunch data objectively and extrapolate from the past to make predictions about the future. "What organizations dedicated to running reliable algorithms often fail to realize is that while they reduce the risk of small variations in their businesses, they increase the risk of cataclysmic events that occur when the future no longer resembles the past and the algorithm is no longer relevant or useful" With the turbulent times we live in, where new mysteries constantly spring up that reliable systems won't address or even acknowledge, businesses risk being outflanked by new entrants solving old and new mysteries developing new heuristics and algorithms. "Without validity, an organization has little chance of moving knowledge across the funnel. Without reliability, an organization will struggle to exploit the rewards of its advances… the optimal approach... is to seek a balance of both"


3. Design thinking: How thinking like a designer can create sustainable advantage

Chapter three starts with an interesting case of Research In Motion (RIM) that leads into the discussion of what is really design thinking. Roger uses the quote by Tim Brown of IDEO, "a discipline that uses the designer's sensibility and methods to match people's needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity" and adds himself "a person or organization instilled with that discipline is constantly seeking a fruitful balance between reliability and validity, between art and science, between intuition and analytics, and between exploration and exploitation". That designers live in the world of abductive reasoning, actively look for new data points, challenge accepted explanations to posit what could possibly be true (in contrast to the two dominant forms of logic - deduction and induction, with the goal to declare a conclusion to be true or false).

The chapter ends with the first discussion on roadblocks to design thinking (many more to come), with one being the corporate tendency to settle at the current stage in the knowledge funnel, and another how "highly paid executives or specialists with knowledge, turf and paychecks to defend” has the company's heuristics in their heads with no interest in advancing to the algorithm stage, making the executives less important. This leads nicely into the forth chapter about the transformation of Procter & Gamble.

4. Transforming the corporation: The design of Procter & Gamble

A.G. Lafley's transformation of Procter & Gamble from an incumbent in crisis to an innovative and efficient organization in just a few years has been widely covered in the business literature. As a student some years back I made an internship in P&G's Connect & Develop (connect with innovators outside the company and develop their ideas for P&G products), and have since been reading up on everything I can find about the transition and why other companies have not been able to make the same transition. Roger adds interesting perspectives, from his work with the company and its first vice president of innovation strategy and design, Claudia Kotchka, to develop "a comprehensive program that would provide practical experience in design thinking to P&G leaders". One of the top-down efforts being to drive brand-building from heuristic (in the minds of scarce and costly senior executives) toward algorithm, providing less senior employees the tools needed to do much of the work previously done by high-cost elites who then could then focus on the next mystery in order to create the next brand experience. The chapter also covers the Connect & Develop initiative and how it bulked up P&G's supply of ideas in the mystery-heuristic transition where it was thin, enabling it to feed more opportunities into its well-developed heuristics and algorithms of development, branding, positioning, pricing and distribution.

Another highly interesting topic covered in the chapter is the change of processes within P&G, including the strategy review, at P&G. Lafley recognized that the existing processes was a recipe for producing reliability, not validity, "so risky creative leaps were out of the question". A transition from annual reviews with category managers pitching, "with all the inductive and deductive proof needed to gain the approval of the CEO and senior management" to "forcing category managers to toss around ideas with senior management… to become comfortable with the logical leaps of mind needed to generate new ideas".

5. The balancing act: How design-thinking organizations embrace reliability and validity

The chapter focuses on the need to balance reliability and validity, and the challenges to do so (foremost all structures, processes and cultural norms tilted towards reliability). "Financial planning and reward systems are dramatically tilted toward running an existing heuristic or algorithm and must be modified in significant ways to create a balance between reliability and validity". Roger presents a rough rule of thumb "when the challenge is to seize an emerging opportunity, the solution is to perform like a design team: work iteratively, build a prototype, elicit feedback, refine it, rinse, repeat… On the other hand, running a supply chain, building a forecasting model, and compiling the financials are functions best left to people who work in fixed roles with permanent tasks". The chapter feels somewhat repetitive, in the uphill battle for validity, and more obstacles of change are presented:
  • Preponderance of Training in Analytical Thinking
  • Reliability orientation of key stakeholders
  • Ease of defending reliability vs. validity
In this chapter, Roger also discusses how design-thinking companies have to develop new reward systems and norms, with an example of how to think about constraints. "In reliability-driven, analytical-thinking companies, the norm is to see constraints as the enemy", whereas when validity is the goal "constraints are opportunities" and "they frame the mystery that needs to be solved".

6. World-class explorers: Leading the design-thinking organization

In chapter six several interesting cases, and approaches of different CEOs, are presented, one being the widely covered case of Guy Laliberté, and his Cirque du Soleil. Again Roger adds to the existing body of knowledge with the twist of reliability vs. validity in creating a new market, and the knowledge funnel taking a one-off street festival into an unstoppable international $600 million-a-year business with four thousand employees. Laliberté has reinvented Cirque's creative and business models time and time again, "usually over protests that he was fixing what was not broken and that he could destroy the company". Other CEOs and cases covered in the chapter are James Hackett of Steelcase, Bob Ulrich of Target, and Steve Jobs of Apple.

The role of the CEO and different approaches to build design-friendly organizational processes and norms into companies are discussed referring to the different cases presented.

Again, Roger returns to the reliability vs validity battle, now from a CEO perspective with terms such as "resisting reliability", "those systems-whether they are for budgeting, capital appropriation, product development…", and "counter the internal and external pressures toward reliability".

7. Getting personal: Developing yourself as a design thinker

In the final chapter the focus is on how a non-CEO can function as a design thinker and develop skills to individually produce more valid outcomes even in reliability-oriented companies. Roger refers back to his previous book The Opposable Mind, and the concept of a personal knowledge system as a way of thinking about how we acquire knowledge and expertise. The knowledge system has three components:
  • Stance: "Who am I in the world and what am I trying to accomplish?"
  • Tools: "With what tools and models do I organize my thinking and understand the world?"
  • Experiences: "With what experiences can I build my repertoire of sensitivities and skills.
Roger then presents the design thinker's stance, key tools (observation, imagination, and configuration), and how to obtain experiences by trying new things and test their boundaries.

Roger also presents five things that the design thinker needs to do to be more effective with colleagues at the extremes of the reliability and validity spectrum:
  • Reframe extreme views as a creative challenge
  • Empathize with your colleagues on the extremes
  • Learn to speak the languages of both reliability and validity
  • Put unfamiliar concepts in familiar terms
  • When it comes to proof, use size to your advantage

This is a great book and I recommend business developers and business model innovators to buy it, as it is a quick read with several important concepts and interesting cases to learn from. I believe design thinking has the potential to help managers break out from the Matrix they live in and again realize the real world behind the existing algorithms.

https://tinyurl.com/4hd6mk64