So close yet no cigar!

I recently moved house and needed to have my mail redirected. The Royal Mail has an awesome service that automatically redirects your mail to a new location for just a small fee. It’s great as it means no worrying about important mail not getting to you on time or having to find the time to go and pick up mail at your old house. Best of all there is an easy online application form eeszy peezy simple stuff and it works brilliantly. Well done Royal Mail for delivering a great customer experience.

But there is more to this story…

When I was filling in my online application to have my mail redirected, the Royal Mail kindly offered to send me a house warming gift – a pack of “yummy and useful goodies” delivered to my new address to help make the move a little easier. Not necessary to be honest but a nice touch I thought so I ticked the box. A few days later my house warming gift arrived at my new home. There was a rough knock at the door, I opened it and had a box practically thrown at me by the postman, he grunted loudly at me (it was closer to a growl) and stormed off. Startled by the abruptness of his behaviour I closed the door and went inside wondering what would be in my goody pack, it was a big box and pretty heavy. Excitedly I opened it, loosely arranged inside the box were:

- six cans of Fanta mixed fruits flavour
- box of 10 tea bags (the box had been completely squashed and deformed by the heavier fantas)
- A bottle of long life milk
- 3 flyers promoting companies that had nothing to do with Royal Mail

My excitement began to deflate. The presentation of the gift pack was awful, the box was too big for the contents, which made it look like there was less in it. The weight had clearly been the Fantas and the long life milk. The Fantas, a flavour I’d never heard of were the most vile I’d ever tasted. To be honest I’m sure it was up their with the cough medicine my mother used to force feed me! I began wondering if the company supplying these gift packs for the Royal Mail had picked up a discontinued flavour for next to nothing and was now subjecting new home movers with this sickly sweet dishwashing tasting liquid that glows in the dark! Where was my favourite Fanta orange? The remaining drinks went straight down the drain. Next I took out the very sad looking squashed tea bags that had clearly lost the brawl they had been having with the Fantas and the bottle of long life milk as they slid around the box.

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Where do you find your music? There’s a game for that!

We all know that the music industry is in huge trouble. Their fight against the music “pirates” is only going to end in tears – they need to work on new strategies. Luckily, some of the players in the industry are starting to do just that.

One clever idea that caught my eye is a new game that is all about finding new music. It is the Music Pets app for Facebook, and the goal is to entertain a virtual pet by training it to like the music you like, then using points to send the pet out to find more music to add to your collection. The app has had just short of a million users sign up since launching in March 2010.

The idea is to replicate how we actually choose new music in the “real world”. We hear something we like, we listen to our friend’s music, we ask for recommendations. Then we try it out ourselves, build a collection, and finally start sharing it with our friends.

Read more about it in the Wired magazine here. Music is meant to be fun. It’s meant to be shared and enjoyed. Maybe the virtual world is how this can best be done in the future.

Now if we can just get some of the world’s governments to start understanding this, and the music industry to wake up, maybe they’d unban the app in the UK!

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Don’t look now – it’s China, but not where you expect her

Whenever people talk of China’s role in the world, there are normally two thoughts that spring to mind. China is fast ‘colonising’ the developing world, building key strategic relationships with resource countries around the world. And, manufacturing jobs in the developed world are being taken over by Chinese factories, thus hurting (or destroying) manufacturing employment in other countries.

Both these things may be true. But there is another reality as well. Realising that logistics (transport of both resources and final product) is expensive (and often dangerous), China is increasingly looking to offshore its factories. Add to that a dwindling talent pool in China itself. They may have many millions of unskilled hands at their disposal, but China does not have limitless supplies of skilled engineers and managers. China is taking its factories to the world.

I heard today of a large Chinese car manufacturer that has signed a deal with Egypt that will build factories in the North African country, and employ many tens of thousands of Egyptians. And then, a recent Fortune magazine carried the cover story about China building factories in South Carolina, and employing American workers in their hundreds. Read the story here, or an extract below.

This is not the China you know and fear. This is a new step for China. It really IS going to be China’s century, isn’t it. Now where is that Mandarin phrase book?? Ah, zhè shì shén me? xie xie.

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Creating Raving Fans: Something to learn from Liverpool Football Club

Liverpool Football Club (LFC) has long enjoyed manic support from the terraces and I for one include myself in that tribe. It is a club with a rich heritage and traditions that evoke envy and admiration in equal measure. Yesterday I read of manager, Rafa Benitez’s departure, a turn that many have been waiting for as something that is needed to restore Liverpool to their rightful place amongst the premiership’s elite following the banana skin of the 2009/10 season. Of course time will be the judge of that belief.

However what was impressive in this newsworthy development was the statement put out by Benitez in response to the mutually agreed upon departure (read it here). He said:

“It is very sad for me to announce that I will no longer be manager of Liverpool FC. I would like to thank all of the staff and players for their efforts. I’ll always keep in my heart the good times I’ve had here, the strong and loyal support of the fans in the tough times and the love from Liverpool. I have no words to thank you enough for all these years and I am very proud to say that I was your manager. Thank you so much once more and always remember: You’ll never walk alone.”

It’s devoid of any trace of bitterness and went way beyond the usual political correctness associated with such announcements. Liverpool is not in the custom of changing managers like Chelsea score goals (a hurtful analogy I know – forgive me) but when they do, it seems they know how to do so. They have succeeded in creating yet another raving fan from their now ex-manager. It could all have been so different and usually is in the turnstile that is football management.

It is a lesson many companies should learn…especially when it comes to dealing with the emerging reality of their ‘Bright Young Things’ walking out the door as they are sure to do.

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Why supermarkets will fail, and other nonsense predictions

I am sitting in a Leadership Conference in Beijing, China (details here), and listening to Dr Jenny Darroch, a Huffington Post columnist and Professor of Marketing at the Peter F Drucker School & Masatoshi Ito Graduate School of Management. She highlighted a really excellent quote from the 1930s about why supermarkets will fail (she also blogged it recently).

It’s from a 1960 article in the Harvard Business Review called “Marketing Myopia” by Theodore Levitt. In it he provided a quote from a 1936 National Wholesale Grocers’ Association Conference to describe the reaction of the Association towards supermarkets. Basically, the advice of the Association spokesperson was that there was nothing to fear – supermarkets would fail because all customers really wanted was a friendly neighborhood store:

… there [was] nothing to fear. …the supers’ narrow appeal to the price buyer limited the size of their market. They had to draw from miles around. When imitators came, there would be wholesale liquidations as volume fell. The current high sales of the supers was said to be partly due to their novelty. Basically people want convenient neighborhood grocers. If the neighborhood stores cooperate with their suppliers, pay attention to their costs, and improve their services, they would be able to weather the competition until it blew over.

Spurred on by this gem, I did a quick search for other great predictions that now seem very stupid and embarrassing. I’ve included a list of my favourites below.

But before you read it, the question must be asked: What things do you think are ‘givens’ in your industry – and what if you’re wrong? Or, to put it another way, in the words of Mark Twain: “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

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Some (more) gems from our archives – valuable reading!

This blog has been running since 2003, and has nearly 2,000 individual entries. At one level it is a living library of the “new world of work”, captured as it emerges around us. I have recently taken some time to troll through the archives, from day one, and discovered again some remarkable gems. This is the second in my series of “gems from the archives”.

These articles from early 2005, are still well worth reading. They were prescient then, and remain important now, as we think about the implications of the new world of work that we find ourselves in. Enjoy:

• The goal of diversity is not harmony
• Cultural intelligence: Individual interactions across cultures
• Would you work for Halliburton (This is even more relevant as it appears Halliburton are the ultimate cause of the current BP Gulf of Mexico oil spill disaster)
• Lessons from where you least expect them
• The last man to wear pantaloons
• Apres moi le deluge – dealing with short term thinking in leadership
• Conversation vs Information
• Chaotic management
• Leading diversity: an invitation to leaders everywhere
• Organising the future: The Individualized Corporation

Happy reading!

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Some hidden gems from our archives – valuable reading!

This blog has been running since 2003, and has nearly 2,000 individual entries. At one level it is a living library of the “new world of work”, captured as it emerges around us. I have recently taken some time to troll through the archives, from day one, and discovered again some remarkable gems.

These articles from 2003 and 2004, are still well worth reading. They were prescient then, and remain important now, as we think about the implications of the new world of work that we find ourselves in. Enjoy:

• 10 Skills for the future
• Thirteen things smart leaders know: how to thrive in a relational economy
• Change has changed
• What women want: the future of leadership
• Relearn to relate
• If you’re not failing, you’re not trying hard enough
• A brave new world, for women
• The great HR paradox: A thought bullet for CEOs everywhere

Happy reading!

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Best blog posts of the last month

It’s been a long time since I have done a “best of” list, and today I plan to do two. The first is the best blog entries of the last month. It’s a been a good month for this blog, and maybe you missed a few of the best entries. Here’s my list, but maybe you think I’ve missed one or two – add your own thoughts below…

• The Janitor: Why the World Cup Will Succeed – the most read article on our blog in the last month, this good news story by Keith Coats is gaining a life of its own as it spreads a good feeling about Africa
• Sir Ken Robinson at TED again – the latest video from TED and the one that started it all. One of the best communicators you’ll see talking about the vital topic of how to develop creativity and the future of education
• Synthetic Life created – this is a short entry, but added to this list because it is just such a huge story. Also read the further details in the comments
• The second and third billion consumers – important insights into the developing world and the role of women in the global economy
• Wreckamovie case study – crowdsourcing comes to Hollywood – my favourite interview of the month
• Dean interviews Zappos and Harley Davidson Execs – this is my favourite interview from last month
• A story before bed.com – my favourite company of the past few weeks – how technology is now connecting us
• Just a Thought: Get Rid of Your IT Department – the post that got the most comments in the pat few weeks
• Right brain people will be a-head in the future – the most retweeted article this month
• When Retirement Stops: PODCAST – our most downloaded podcast this month

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The day Apple became more valuable than Microsoft

At the close of market yesterday Apple became bigger, by market cap, than Microsoft. This is huge and reflects the market’s belief that although Apple isn’t as big as Microsoft, (and probably never will be), nor does Apple make or have as much money, at the moment at least Apple is leading the tech world. Fast Company has written a good post on why this is so but they focus primarily on the product differences. The main reason in my mind is the experience Apple offers to customers. Any competitor can copy a iPhone or iPad, they make even make it look funkier, but until they match or better the overall customer experience Apple will remain way ahead of it’s competitors. Today’s competitive advantage lies in how well companies engage with their staff and customer and it is in this sphere where Apple leads the way.

You can read more about the momenteous day when Apple overtook Microsoft below or at Fast Company

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Just a Thought: Do conferences have to be so dreadfully dull?

This is the second in the “Just a Thought” series by Dr Graeme Codrington for the TomorrowToday ezine. (Read his first contribution on Getting Rid of Your IT Department here).

Conferences seem to have taken a backward step during the economic downturn. Boring presenters, out-dated content, cheaper venues and food, and old-fashioned technology are all contributing to dreadful experiences for delegates. Dr Graeme Codrington spends a lot of his time at conferences, as a speaker and facilitator. He has some suggestions about why conferences can so often be dull and value-less events, and even more ideas about what companies and event organisers can do to drag their conferences kicking and screaming into the 21st century.

The dangers associated with a short-term mindset in business are particularly acute during an economic downturn. A survival mindset exacerbates the problem of focusing on short-term returns at the expense of long-term health and growth. There are many industries one could look to for stand-out examples of this: Toyota’s recent quality issues; financial institutions paying out massive bonuses with bailout money still floating around the banking system; BP’s flagrant disregard for safety on its Gulf of Mexico rigs; and numerous cartel operations in everything from bread to software.

I have noticed a similar shift to short term thinking in the world of meetings and conferences in the last two years. In particular, I am referring to events that are arranged by PCOs (Professional Conference Organisers), rather than in house company conferences (although I will say something about those, too). And the point I’d like to make is that – on average – they have taken a massive step backwards in quality.

These events are typically industry-related annual conferences, often linked to an exhibition or trade show. They have big reputations and brand names, and aim to attract all the players in their industries. And many have been doing so for many years and are well established “fixtures” in the industry calendar.

But, in the downturn, some of these events have made some short-term-based decisions. Some have downgraded venues. Some have tried to skimp on costs by downgrading food, facilities and staff. This has sometimes led to longer queues, less well run events, and some frustration around organisation and flow of the events. A few conferences I have been to recently have chosen to use cheaper AV (audio visual) suppliers, resulting in bad quality sound and irritating issues with data projection, lighting and so on.

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Book review: Orbiting the Giant Hairball

I am becoming increasingly interested in company structures that are trying to use quantum mechanics (as opposed to Newtonian science) as the basis of their design. The simplest versions of these are linked to the concepts of cloud computing and virtual organisations.

Probably the most insightful book I have read on this to date is Malone’s “The Future Arrived Yesterday” (buy from Amazon.co.uk or Kalahari.net). This book has been reviewed by one of my business associates, Pete Laburn – read his excellent synopsis here.

But then, on Saturday, I was meeting with John Reynolds, the Executive Vice President of Azusa Pacific University, and he recommended a book that is written by a “been there, done that” CEO. Gordon MacKenzie ran Hallmark for many years, and implemented many of the concepts of a “Protean organisation” while he was there. The quirky book title refers to concept of a central idea/hub/node, with lots of orbiting people/business units/functional areas.

I haven’t read the book yet, but it appears to have a growing cult status. You can buy it at Amazon.co.uk or Kalahari.net, and I have copied a detailed review from Amazon’s site below. Looks interesting, and is on my “to read” list.

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Content farms – the future of journalism

Newspapers and magazines are going through a tough time. Not because of the recession, but because they don’t seem to know what to do with the Internet and the rise of free content. Some are choosing to try and sell their content. Other are trying to find ways to entice more advertisers into their different media channels. Some are even finding small successes with these approaches. But most just don’t have a clue how to be successful in this new era.

Recently, Rupert Murdoch announced that his flagship papers around the world would start charging for online content. The resounding response of most people under 40 was, “Well, let’s see how that works for him, then.” It will end in tears. Murdoch’s bully methods may have been perfect for the era that is ending, but are not going to work in the new economy.

A story caught my eye in a recent Economist magazine that adds yet another nail into the old media coffin. Using concept of social media and crowdsourcing, a clever piece of software helps journalists to reduce the cost per hour of generating content. It’s very clever.

You can read about it here, or an extract below.

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Crowdsourcing comes to Hollywood

I was recently introduced to Peter Vesterbacka, who heads up an innovative company called Wreckamovie. The concept is simple: use social media concepts to facilitate the crowdsourcing of movie making. Or (without the web 2.0 jargon): use the Internet to get thousands of people to contribute to making movies together.

Hollywood and the big name studios account for only a tiny fraction of all movies made every year anyway, and Wreckamovie want to help independent film makers capture the power of the social net to make the best go at success that they can.

It started with a movie called Starwreck. Based in Finland, the original production team headed by Samuli Torssonen and Timo Vuorensola started asking people for help online (this was 1998, and the Internet was still in its infancy). Long before social networks became popular, they had already realised the potential of a worldwide community of people who were passionate about Star Trek and sci-fi parodies. It took seven years to make their movie and was collaborative all the way through (read a bit of the tech production story here – see the server farm they used to do the render at the bottom of the page, for example). It was eventually released in October 2005.

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Square – accept credit card payments via your cellphone

You heard about it here first. My colleague, Dean van Leeuwen wrote about this trend at the beginning of March (read his post on the Future of Money). Something he just mentioned in that post was launched officially today (and picked up by Fast Company magazine – they could read this blog to keep ahead of the game ).

This is a game changer for financial services!

It’s called Square, and will allow you to be able to process credit card payments using your smartphone. According to the press release:

Starting today, Square aims to make credit card sales as easy for retailers with an iPhone as it is for some dude selling a couch on Craigslist.

With Square, anyone can accept credit or debit card payments by downloading the app and plugging a little plastic cube into the headphone jack of an iPhone, iPod Touch, iPad, or Android phone. After a quick swipe of the card through the reader, the merchant turns the device over to the customer to sign his or her name on the touchscreen using a finger instead of a pen. The customer can add a tip, either by percentage or a particular amount, and then enters their phone number or email address. In the best case, the receipt message will buzz in the customer’s pocket as an email or SMS text message while walking away with their purchase.

Customers are charged as usual by their banks or credit card companies, and Square settles up the net funds with merchants each night instead of at the end of the month. The swiper and application are both free and include access to an online dashboard with analytics that help merchants track exactly what they’ve been selling.

I wonder if the banks are watching? They do tend to miss the game changing moments in their industry.

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@HeathrowAirport – a great case study for customer connectivity

Not many companies get how to use Twitter. @heathrowairport does! Bottom line Twitter and all other social media platforms are about building relationships with customers and entering into a dialogue. Check out @heathrowairport on Twitter. What impresses me about what heathrow airport is doing is that it honestly feels like there is a real person behind the tweets. (of course there is a real person behind @heathrowairport and they are doing a great job. My concern is with other companies who may be devising ways of how they can use a computer to automate their tweets!) For @heathrowairport you get a sense of someone who is friendly, has an engaging personality, is funny, takes the time to listen to what customers are saying, has empathy and is looking out for the passengers just as a friend would.

In my latest article Bacon Baps Build Buddies I reveal how companies can get more out of social media and develop strategies to build relationships with customers. I reveal why achieving customer loyalty is like trying to herd cats impossible and how companies can use social media to build stronger relationships and even partnerships with customers using the principles of friendship: Being supportive, sharing dreams and aspirations and encouraging other friendships. @heathrowairport is a great case study for companies wanting to build stronger relationships with customers. Have a look at a screen grab I took of some of @heathrowairport’s recent tweets, they are friendly and engaging – brilliant!

Another company that gets this is Zappos and you can learn more about Zappos’s approach to customer relationships, social media and unique company culture by listening to an interview I did with the COO of Zappos Afred Lin. While your at it book to come and see Alfred and myself speaking at the European Customer Experience World conference in london 18-19 May 2010

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Dean interviews the COO of Zappos and Director Marketing Operations of Harley Davidson on customer experience

A lot of folks are drinking the Zappos kool-aid these days. And it’s easy to see why. Because every now and then you come across a company that’s so contrarian in its thinking and execution that it leaves most observers bewildered. Before it was Google with quirky initiatives such as 20% time, something we now know powers its innovation funnel.

Online retailer Zappos is the latest purveyor of contrarian thinking, all in the pursuit of its happiness business model. For example, staff can spend six minutes or six hours on the phone with a single customer – there’s never any pressure to hit productivity quotas. New staff are even bribed with cash to leave to gauge their commitment. And customers can return shoes up to a year after purchase, postage free, for a full refund. The list goes on.

The result? Booming sales and very happy customers. In 2009 Zappos broke though the $1bn ceiling ahead of target. They have over 7.4 million customers of which 75% are repeat purchasers! And best of all the company is so profitable and attractive that Amazon bought in last year for $1.2 billion!

Harley-Davidson needs no introduction. It’s an iconic brand loved by accountants and hells angels alike, that doesn’t rest on its laurels but has created a unique company culture that brings together employees and customers

This short podcast (15 mins) reveals how you can build a strong customer focused culture which drive profitability. It’s a discussion with Dean van Leeuwen, co-founder of TomorrowToday International, Alfred Lin the COO of Zappos and a Markus Kramer from Harley-Davidson, all of whom will be speaking at the upcoming European Customer Experience World event in May – check out the website for details.

Download the podcast here

This Podcast was recorded by researchtalk

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Partnering with customers

Partnering with customers is a trend that I’m a huge advocate of. The new world of work demands that companies actively engage with and enter into mutually beneficial relationships with customers. Companies that create and encourage channels allowing customers and staff to engage in one on one meaningful relationships will pull ahead of the competition. I’ve just come across a great example of co-creation (a spin off from crowdsourcing). In co-creation a company builds an intimate relationship with a group of it’s customers to work closely with it in coming up with new ideas and innovations.

Read more about crowdsourcing here:
Onions & Parfait
When social media grows up
Crowdsourcing enhancing the power of people

Venessa Wong of Bloomberg Business week has written a great article on how Unilever is making the most of this collaborative consumer model. You can read Vanessa’s article below or visit Business week

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WTF Goldman Sachs

Most of the time I am able to be even keeled and calm about most things. I have had occasion in life to be in tough, crisis and challenging situations, and have a reputation for being cool, calm and collected. I like to think of myself as even-keeled, balanced and consistent. I also do not swear. I don’t like profanity. But sometimes a story comes along that cannot be expressed in any other way than through sheer, incredulous, mind blowing, sputtering outrage. The story behind the story of the investigation into Goldman Sachs is one of those…

Both the SEC (America’s Securities and Exchange Commission) and the FSA (The UK’s Financial Services Authority) have announced investigations into fraud at Goldman Sachs. The SEC has actually laid a civil suit.

The SEC is charging that Goldman worked with Paulson & Co, a hedge fund, to create a package of risky subprime mortgages (called Abacus security) that was intentionally designed to fail. That’s obviously horrific – investment bankers and advisors creating a product that they knew would collapse and lose money. But that’s not the fraud. Read on.

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Reinventing customer service

The Great Recession has had a lasting impact on consumer behaviour and attitudes. Citi announced that 75% of people researched in a recent survey believe their attitudes towards savings and loans have changed forever. Combine this with social media providing clear evidence that people have a huge appetite for relationships, we are increasingly convinced that companies needed to focus on developing intimate and deep relationships with their customers. This growing trend in customer service and the customer experience, I believe is the key success factors in the new world of work. As the world changes, consumer capitalism is going to determine who will be the winners and the loosers over the next decade. The most recent example that I have found supporting this trend is that of financial service giant American Express who is reinventing its customer service.
In a great article by Mila D’Antonio in the 1to1 Magazine AE is shown to be making a concerted effort to lead customer service by following a threee pillar stratgy focusing on Hiring, employee training and technology to support create deeper emotional connections with its card members to enhance their relationships. The strategy centers on cultivating a personal connection with each customer. AE has been hiring employees from industries like hospitality and sales, who bring a real passion for customers and investing in new technology, enabling American Express’ customer care professionals to increase their knowledgeable recommendations to customers.

This is a great example of a traditional company adapting to challenges in the new world of work and following a strategy that puts customers first and well worth reading. I’ve recently written two articles on the subject of building intimate relationships with customers akin to those of friendships which you can download here:

- Onions & Parfait: Customer relationships no longer need to be a thing of fairytales and pirate stories

- Bacon Baps build Buddies

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Why the UK needs a Jon Stewart

I really don’t like how the UK media (especially radio and TV) do political interviews. The journalists are exceptionally and unnecessarily antagonistic, and seem much more intent on tripping up their interviewees than finding any facts or truth in the interaction. They’d consider the interview a success if they can corner the interviewee and get them to make a badly considered statement. In tiny doses, it can make for interesting viewing or listening, but it really gets wearisome quite quickly. There is space in British media for someone who will do a good job at interviewing with a wholesome outcome in mind – especially politicians.

But I’d also suggest that there is space for someone like Jon Stewart from The Daily Show. His stock in trade on his Comedy Central news show is to take archive clips of politicians and public figures and contrast these with something they’ve just recently said. For example, last night he reportedly incredulously on John McCain’s statement late last week that “I never considered myself a maverick.” As Stewart said, this is so obviously revisionist that he didn’t even need to show archive material to make the point. “Maverick” was almost the entire foundation of McCain’s presidential campaign.

Stewart does this every day to devastating effect, and provides real insight into the character of individuals and organisations. In fact, in a poll a year or so ago, Jon Stewart was voted as the most trustworthy news source in the United States (that says more about the US than Stewart!).

I think the UK could do with someone who does what Stewart does. I find it hard to believe, for instance, that Gordon Brown’s words as Chancellor are not shown over and over again in the media, or that opposition parties do not make more of them. For example, in Mr Brown’s first budget, in July 1997, as the new chancellor, he lambasted his predecessors who “deluded themselves into believing that growth, however unbalanced, was evidence of their success.” He vowed: “I will not ignore the warning signs.” Hr promised: “Public finances must be sustainable, [otherwise] the poor, the elderly and those on fixed incomes… will suffer most.” There were other now-ironic gems, such as “I will not allow house prices to get out of control” and “This is a government that keeps its promises on tax.” On occasions, he claimed to have abolished the cycle of boom and bust, and saved the world (this last one was an unfortunate “mis-speak”, but is still fun to watch. The others were all said in earnest).

The flip-flopping, spin doctor-managed politicians need to be held to account for their words. The UK media doesn’t do a good job at doing this. We need a Jon Stewart. Are any of UK’s comedians up for this?

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