Month: November 2012

 

 

Twitter friend and HR/Talent guru Gautam Ghosh is known for his sense of humour; I had the chance to observe that close at hand when he called me “the Yoda of #socbiz”. Talk about making me feel old! Old enough to know he meant it as a big compliment!

I *had* to reply in kind.

So I said the first thing that came to mind in mutated (mutilated?) Yoda-speak:

When you look at the social side, careful you must be ….. for the social side looks back

I’ve thought about it since. And you know something? Yoda’s right. Companies would do well to bear that in mind.

The social side looks back.

 

 

 

 

 

 

As a young man I’d come across Alan Kay’s original comment “The best way to predict the future is to invent it”. And as you’d expect I loved it.

Years later I met Alan for the first time, in one of my favourite places, the “Del” on Coronado Island.

He’d updated his comment. He said “The best way to predict the future is to prevent it”.

Nearly forty years had passed since he’d made the original comment, forty years of dealing with the powers of prevention.

I have a lot of sympathy for his changed view, based on what I’ve observed since 1980, when I came to the UK. The patent system is a mess, and not surprisingly that stifles innovation. Incumbent power, something not to be trifled with, gets made even more powerful as a result of the broken intellectual property landscape. Not that it’s easy for incumbents to innovate, given the clear and present danger of the innovator’s dilemma. The incumbent response to the danger is often to try and stifle innovation even further by a series of anti-competitive strategies, some legal, some not. Fines tend to be trivial in the context of the business “protected”, the invention “prevented”.

Yet innovation does take place; occasionally, it is even disruptive. And every time it takes place, I marvel.

Sometimes I marvel when it doesn’t take place. This is one of those times.

Take a look at this:

 

My wife needed a new phone; she wanted a phone, not a handheld computer. And so I got her what she wanted. It was a Nokia 300, and it came with the plug above.

It was the first time I’d seen a compact UK 3-pin plug, with two standard pins and a third that telescopes into place.

How nice.

As I said, it was the first time I’d seen such a plug.

Sadly not the first time I’d read about such plugs.

Some years ago, I’d come across this:

 

 

 

 

Simpler, more elegant. Billed as the New British Standard Slimmed-Down 3 Pin Plug.

Written about over 3 years ago.

No sign of it anywhere.

The best way to predict the future…..?

Last night I wrote, in the context of customers:

• They want to be treated like human beings, not account numbers.
• They want to know they can trust the people they do business with.
• They want to know that the people they give their business to actually value their business.
• They want products and services that are fit for purpose, made available at a reasonable price.
• If and when something goes wrong, they want to know the facts. Quickly. Without window-dressing.
• They’d like to know what is best for them, so they’d like to talk to their friends and relatives about it.
• They’d like to know what their friends recommend, and they’d like to recommend things to their friends.
• They’d like help when something turns out more complicated than they’d expected, or when they’re trying to do something different.
• And they’d like to know that they’re being treated fairly.
• In exchange for all this, they are willing to give their custom regularly and loyally. As part of a trusted relationship. Where people buy from people and people sell to people.
• In exchange for all this, they are willing to become customers.

Today I want to spend a little time looking at each of these things, seeing how companies can make it easy for customers to do all this. But before that I want to remind you of the question I repeated before these points, on building trust.

Trust. The lynchpin of any relationship between customer and company.

Whenever you’re designing products and services for the customer, start with the question:

Will this help build trust between the customer and the company?

If the answer to that question is No, then everything else doesn’t really matter. Just icing on a cake that no customer wants to eat. No customer, no business.

That’s Social Customer Rule 1. Whatever you do, it must not weaken the trust relationship between the customer and the company.

[An aside. I am trying to frame this in such a way that we no longer have to worry about terms like B2B and B2C and large-cap and enterprise and SMB and SME. These principles should work in the limit case of a single-person “company” dealing with a single person. And then we should be able to scale those principles up.]

For now, let us assume that the answer to the question is yes. I will come back to this overriding question, this “envelope” of trust, later on in this post.

So let us now look at some of the detail in what a social customer wants to be able to do. In order to do that, I’d like to work with a simple model of the customer.

There’s been a lot of research into why people buy. It’s written by people a lot smarter than me. This blog is not where you should come for that research. What I’m trying to do here is to build a simple from-first-principles model of what makes a customer buy, and then to explain what a “social”customer would want as a result.

So let me start with an impetus to buy, formed by one or more of many possible stimuli (a perceived need, a whipped-up need, a slice out of Maslow’s hierarchy of needs, a want, a wish to keep up with the Joneses, a drive to acquire a la the Nohria and Lawrence 4-driver model, a lonely impulse of delight, environmental psychological design a la Paco Underhill, “retail therapy“, Christmas, the consequence of this appalling modern tendency to build obsolescent products, children, TV, advertisements, excess credit, pure unadulterated greed, whatever).

Someone wants to buy something. Which is made easier by the existence of an inventory of all the things that can be bought. That inventory needs to have some classification, some labels, some tags, an ontology and a taxonomy. If you want an understanding of this, you should read David Weinberger’s Small Pieces Loosely Joined as a starting point. Customers need to know what’s available, in a simple and convenient way. The problem is, there’s a forest of things out there and it’s not easy to see the trees. So the labels and classification and search tools and find tools matter. This by itself is not a “social” thing. What makes it social is the support for folksonomies, citizen tagging, above and beyond the chosen ontology and taxonomy.

Which brings us to Social Customer Rule 2. Inventory should be taggable. Your inventory of products and services, besides being easily discoverable, must support some form of tagging, some way to harness collective intelligence in solving the you-say-tomahto-I-say-tomayto problem.

So now the customer’s found something, which may or may not be suitable. There are lots of questions that need to be answered, in terms of quality, price, reliability, future-proofness, whatever. Here, “social” really comes into its own. In many cases, collaborative filtering techniques will come in useful. People who looked at this also looked at. People who bought this also bought. X% of people who looked at this bought it. The customer wants to know that the seller is reliable. Which means that seller ratings become worthwhile. In the same way, information about the product can be gleaned socially, via reviews and suchlike.

And so we have Social Customer Rule 3. Product and Seller information should be made social by allowing for reviews and ratings to be shared; price comparisons and collaborative filtering should be supported.

At this point I want to return to the question of trust. Reviews can be gamed. Ratings can be gamed. Those of unscrupulous bent have mastered the act of “shilling” the web. [Incidentally, a paper on Collaborative Filtering with Temporal Dynamics won the KDD 09 Best Research Paper award, and is worth a read if you’re interested in such things. Filters can be useful, but they can also be insidious if selected by others. Eli Pariser makes this point well in The Filter Bubble. You need to be able to switch filters on and off at the subscriber level; to be able to look at collaboratively filtered information at a general level (people who did A did B) or at your network level (people in your network who did A also did B). Support for all this needs a sensible approach to identity at a minimum.

Which brings us to Social Customer Rule 4. A sensible identity framework, supporting federation, should be in place.

Of course it doesn’t stop at identity. Because attached to that identity can be a whole slew of information to do with behaviour, preferences, activity, friends, purchases, rentals, status, location. From a social viewpoint, two things matter in this context. Who can see that information. Who decides. And the simplest answer is that the customer is the sole decision-maker of who can see what, when it comes to personal information.  If the company wants to be in the business of sharing that information, it has to be done on the basis of informed consent.

One key point to remember is that this is not just a company issue. Individuals may choose to share their transactions, their activities and their intentions with their network of friends, and even beyond that network. The customer is also in the sharing business. Customers will want to share the price at which they bought the airline seat, the hotel room, the album or the car.

And that gets us on to Social Customer Rule 5. Customers should be able to share their preferences, their profiles, their actions, transactions, activities and intentions with others if they want to. They must be able to decide what they share and who they share with. Sharing of this sort does not happen with the publish side alone, there has to be a subscribe part to it as well. A customer should be able to “tune in” to the general populace in terms of what they’re buying/selling/eating/reading/making/shaking; to be able to restrict the listening area to a location or a level of personal network, to filter the population as needed.

Underpinning all this we would need what I’m visualising as an “envelope of trust”, embodied in a set of rights”. The right to change your mind when you buy or rent something. The right to take your business elsewhere. The right to take your data elsewhere. The right to know what data is held about you, and who has access to that data, and for what purpose. The right to know how long that data is held, and why. The right to know when and where the whole enchilada has been breached, either through government agency or by “bad actor”. The right to know the status of all online services. The way old rights disappear and new rights emerge. The right of appeal.

Instead of listing a whole series of rights, I could just have said “behave with openness and transparency”.

These are just my thoughts. None of this is going to happen overnight, and there are many reasons why companies won’t invest in all this anyway. Many companies have been of the belief that customers are like children, preferably not seen, definitely not heard. So they concentrate on “managing” products, since products tend not to complain or ask for their money back.

But it’s changing. Some companies are providing tools that allow customers to become social. To share their activities, to be able to give and receive recommendations, to rate and review participants and products and services.

To put it another way, some companies are investing in real relationships with their customers. And customers are responding by being frequent and regular in their custom.

This has been happening for a while now, in some cases for over a decade. None of this is new. None of this is rocket science.

Customers are social by nature. They enjoy being with their friends, sharing their thoughts and beliefs and experiences and preferences. They will continue to do all this.

When they decide which companies they will give their custom to, they will look for companies that make it easy for them to share all this.

That’s what designing for the social customer is about.

Time to quote Drucker again. In an interview about a decade ago, he said:

No financial man will ever understand business because financial people think a company makes money. A company makes shoes, and no financial man understands that. They think money is real. Shoes are real. Money is an end result.

That’s pretty harsh about financial men, and probably unfair. I have known many good financial men, men who understand that “shoes are real”. But then I don’t know the context in which Drucker stated it.

What I do know is that the principle is sound. That we should all concentrate on making shoes well, openly, transparently, to the spec that the customer wants. And if we’re good at it, the money will come.

More in a week or two, once I see the responses to this post. No responses, no follow-up post. The market decides…..

 

 

Peter Ferdinand Drucker has influenced a great deal of my thinking, particularly about management, about organisation, about organisations, about all of business.

And about the customer.

After all, there is no business without a customer. As Drucker famously said (on page 61 of his seminal work Management: Tasks: Responsibilities: Practices):

There is only one valid definition of business purpose: to create a customer.

His italics, not mine.

The purpose of business is to create a customer.

A customer.

 

According to the Oxford English Dictionary, the noun “customer” has a number of meanings:

• One who acquires ownership by long use or possession;  a customary holder.
• An official who collects customs or dues;  a custom-house officer.
• One who “frequents” any place or sale for the sake of purchasing; one who customarily purchases from a particular tradesman; a buyer, purchaser.

We are not required to guess which meaning Drucker meant to rely on. The OED informs us that the first two usages above are obsolete, and that the “chief current sense” is related to the third and final definition.

So the current and only extant definition of “customer” is fundamentally about a regular, habitual, returning buyer. And this definition is no fad: there are references to this particular meaning in publications going as far back as 1480, 1523 and 1611. Not a fad.

None of this is new. None of this is startling. Everyone knows that businesses don’t exist without customers. Everyone knows that it is much easier to do business with an existing, “repeat” customer.

So why am I saying all this, and why now?

It’s for a simple reason. I’ve spent over a decade trying to make business “social”: writing about it, implementing tools that help businesses become more social, talking at conferences and seminars and workshops about it, engaging one-to-one with organisations keen on starting the journey towards becoming social.

And every now and then, the same question comes up, in one form or the other:

Where’s the payback? Where’s the ROI? Why is it worth doing?

When I started with the use of social tools in enterprises, at Dresdner Kleinwort, Andy McAfee was looking for people engaged in what he later termed “Enterprise 2.0”; the questions he asked, his lines of investigation and his subsequent SLATES framework did much to help me understand where the payoffs were in what we were doing then. We’d been using some of the tools since the late 1990s, and were adding to our toolset as more became available. In those days, many of the tools were open source, so there wasn’t really a significant investment decision to make: in many cases, we allowed multiple pilots to run in parallel before deciding the way forward on the basis of adoption and usage rather than mandate.

To many of us, the payoffs were as plain as proboscides. Not just any proboscides. Prominent proboscides. As prominent as the proboscis on the primate below.

The tools may largely have been free; our investment was nevertheless significant, in terms of the time we spent documenting and sharing what we were doing, what we were learning, what we could re-use. Early payoffs were simple, and were encapsulated in the McAfee SLATES model: improvements in knowledge management as a consequence of the use of Search, Links, Authorship, Tagging, Extensions and Signalling. Communications improved as a result; email traffic went down; meeting agendas became easier to construct, the meetings themselves were easier to run, and documenting the results and decisions was done more effectively. The persistence of the information, and its simple shareability, reduced translation and misinterpretation risk in global projects; version mismatch was minimised, since we tended to be looking at the same document; the ability to learn from mistakes was enhanced quite considerably.

We weren’t really using terms like “social” then within the enterprise, though people had begun to group the tools into this emergent category of “social media”.

Since then “social” is everywhere. We use terms like social business, social enterprise, connected company, and even argue about what they mean. Incidentally, I just love the words the Drucker Institute uses as a description:

We are a social enterprise that makes people more effective, organisations more responsible and work more joyful. We do this by turning Peter Drucker’s ideas and ideals into tools that are both practical and inspiring. We do this because society is only as strong as the organisations within it.

With the explosion of interest in “social”, there is no dearth of evidence on the rationale for investment in companies becoming social. Locke, Levine, Searls and Weinberger gave us The Cluetrain Manifesto to set out the agenda over a decade ago. Hagel, Seely Brown and Davison then provided the business rationale, the move from stocks to flows, in The Big Shift and The Power of Pull. Michael Chui et al at McKinsey Global Institute then gave us the research on how this was affecting corporations by publishing The Social Economy: Unlocking Value and Productivity Through Social Technologies. More recently, IBM, in its regular annual Global CEO Study, majored on how chief executives now regard “social” as where their interests lie and where their investments are going.

There is no dearth of evidence.

And yet.

And yet the questions continue.

So that’s why I wrote a series of posts recently on “The plural of personal is social” to try and go back to the beginning, to the customer. To try and explain that customers expect, even demand, to be treated as people. To try and explain that “social” was actually a way of doing this. Somehow, even after writing those posts, I felt there was more I wanted to say about it. Hence this post.

 

Companies need to become social. Because their customers are becoming social.

Companies are used to deciding to do (or not do) something because it makes “business sense”; now they have to learn to do (or not do) something because it makes “customer sense”.

From a business viewpoint, if something does not make sense in the eyes of the customer, then it is not worth doing. Not if you want customers. Not if you want people who return, and return regularly, to do business with you, people who provide you with their custom. Customers.

That’s what I meant when I said:

“Social” is not a layer. “Social” is not a feature. “Social” isn’t a product.

Social is about bringing being human back into business. About how we conduct business. About why we conduct business.

Social is something in people’s hearts, in people’s beings, in their DNA.

Man is born social.

Many companies were not.

So, every time you do something you believe makes your company more “social”, ask yourself the following question:

Will this help build trust between the customer and the company?

Customers aren’t stupid. There may be a sucker born every minute, but customers are not suckers. Even suckers don’t return.

Ask yourself  “Will the customer get a better product or service as a result of what I’m doing?” Ask yourself  “Will the customer return and trade with me again?” Ask yourself  “Will the customer recommend me to others?” And again and again, ask yourself:

Will this help build trust between the customer and the company?

Sometimes customers don’t know what they want, and may need help in that process of discovery: much has been written about Henry Ford and “faster horses”. Sometimes customers don’t  know what is possible, and may need their imaginations to be given wings: much has been written about Steve Jobs and “a dent in the universe”. Sometimes customers are happy with what they have… until they see something much better: much, too, has been written about (and by) Clayton Christenson and “The Innovator’s Dilemma.”

These are limit cases.

Most of the time, customers know what they want.

They want to be treated like human beings, not account numbers.

They want to know they can trust the people they do business with.

They want to know that the people they give their business to actually value their business.

They want products and services that are fit for purpose, made available at a reasonable price.

If and when something goes wrong, they want to know the facts. Quickly. Without window-dressing.

They’d like to know what is best for them, so they’d like to talk to their friends and relatives about it.

They’d like to know what their friends recommend, and they’d like to recommend things to their friends.

They’d like help when something turns out more complicated than they’d expected, or when they’re trying to do something different.

And they’d like to know that they’re being treated fairly.

In exchange for all this, they are willing to give their custom regularly and loyally. As part of a trusted relationship. Where people buy from people and people sell to people.

In exchange for all this, they are willing to become customers.

In the end, that is the reason why businesses need to become social.

Unless they do, they won’t have any customers.

 

Was a sunny day
Not a cloud was in the sky
Not a negative word was heard
From the people passing by
’twas a sunny day
All the birdies in the trees
And the radio’s singing song
All the favorite melodies

Paul Simon, Was a Sunny Day, 1973

Have you noticed how, when you listen to an old favourite, you get transported instantly to the time when you used to listen to that song regularly? And sometimes do you feel yourself teleported more precisely, more specifically, to the time and place when you first heard the song? The surroundings. The temperature. The aromas and smells, the light, the colour, the weather.

And the people. Memories are made of people.

This teleportation, it happens to me a lot. Probably because I spend so much of my time listening to music made in the mid-to-late 1960s and early-to-mid 1970s. A wonderful decade. As a result, almost every day, I experience what the Carpenters memorably called Yesterday Once More. It doesn’t mean I wallow in nostalgia, I’m essentially a happy person, happy with my lot, happy in my present. Contented. I just happen to like the music of that time: I don’t listen to the music in order to evoke memories. But memories do get evoked.

Paul Simon’s Was A Sunny Day is a case in point. Every time I listen to it, I am reminded of a time when I would hear childhood friend Gyan sing it, often in duet with my cousin Jayashree. The same thing happened more recently when I was walking past a store and heard Wings’ Wino Junko. Suddenly I found myself in the “chummery”, the bachelor pad for young executives of a bank in Calcutta, sitting on a chair made out of a sawn-off wine barrel, with Gyan and Jayashree, listening to At The Speed of Sound for the first time. I think we also heard Diana Ross do the Theme from Mahogany for the first time that day. Memories.

Earlier this week, I was away in the western US on business. Woke up around 5am as usual, showered and got ready, then sat down to check on news and messages before going down to breakfast. Web headlines. Check. Chatter messages. Check. Twitter DMs and @messages. Check. Facebook messages and notifications. Check.

Freeze.

Rewind.

Facebook notifications. My classmate and friend of 46 years, Minoo Wadia, had commented on something that Les D’Gama, another schoolmate, had shared. Does-Not-Compute.

Rewind. Read again. And again.

Compute.

Freeze.

That’s how I learnt that my childhood friend, husband to my cousin Jayashree, father to my nephew Jiver, Gyan Singh, had passed away. He was only 61.

Floods of tears. Floods of memories. I didn’t know what to do. So I called Jay and spoke to her, tried to pass on my condolences. Had no words.

Then I sat and prayed. Prayed for Gyan, for Jay, for Jiver, for their family and friends.

I still had a few hours before my first business meeting. Hours to reflect on Gyan and to give thanks for him.

I’d known him since 1972, when I was approaching 15; we were introduced by Albert Silliman, my then girlfriend’s brother. A few weeks later, I had the opportunity to be present while Gyan played Leonard Cohen’s The Stranger Song and then followed it with Famous Blue Raincoat. I was hooked. Entranced. Even in those early years he was an absolutely brilliant guitarist and musician.

Over the next 8 years I got to know him better, as he met my cousin Jayashree and they became fast friends. I think I introduced one to the other, but that may be my memory playing tricks …. we all like to rewrite history the way we’d like history to have been. One thing’s for sure, my heart was fit to bursting with joy when I heard they were getting married, and I knew I just *had* to make it back to Calcutta for their wedding, even though I could not afford it. I was there. Twas a Sunny Day.

Gyan was always “family” in practice, and with the wedding that status became a legal one as well. And so I felt close to him even though I was thousands of miles away; no trip to Calcutta made sense unless it centred around spending time with Gyan and Jayashree. Sometimes Gyan would make it to London, but our meetings weren’t frequent, spread over half a dozen occasions over the past thirty years. And I would try quite hard to speak to him on the 5th of September every year, just to wish him happy birthday.

I could not see him the last time he came to England; I was myself hospitalised unexpectedly in the US and could not fly back. These things happen.

Gyan was a brilliant musician. The tributes that are flowing everywhere are testament to that. But that’s not what I want to write about.

I want to write about the Gyan I remember, above and beyond musician. Gyan the friend. Gyan the shoulder to cry on. Gyan the guy who did the things that needed to get done, often without being asked. Gyan who never sat in judgment, Gyan who knew when companionship was what was needed.

I want to make sure the world knows about the Gyan who made himself available unquestioningly and self-sacrificially whenever a friend was in need. I was a pretty moody teenager; seeing I was upset about something, Gyan would say “Come on, let’s go for a ride”. Sometimes it would be the Strand, sometimes Bihar (near Nizam), sometimes the fruit juice sellers near Lighthouse, sometimes just driving around. It was an amazing quality of his. No words. No judgments. No nothing. Just a companionable silence, during which I would calm down, settle myself and be fit for human consumption again. [I learnt a few days ago that he would do the same thing for my sister Sreepriya, something I’d neither noticed nor known. And I’m sure he did it for others.] It was something that Jayashree would also do, so I’m not surprised they got on swimmingly. I remember the two of us sitting somewhere on the Maidan, watching the sunrise, saying nothing.

I want to make sure the world knows about the Gyan who would speak with incredibly infectious enthusiasm and passion about the things he was interested in: it didn’t matter if it was a book, a play, a song, a band, a film, a dish; all you had to do was listen to him and soon you would have that same enthusiasm. So it’s no surprise that he was a big influence in the kind of music and books and films I listen to, read, watch, even to this day.

I want to make sure the world knows about the Gyan who’d pitch in and help, practically, whatever the situation, even if it meant putting himself to considerable inconvenience and sacrifice. Giving people lifts. Being the designated driver before the world realised the need for designated drivers; Gyan was the one who’d make sure everyone got home safe…. especially the ones who had somewhat reduced their chances of getting home safe by the end of the night. If someone was ill, he’d offer to go get the medicines from the pharmacy; if someone needed picking up or dropping from station or airport, Gyan would be there. Gyan and his little black Fiat, seemingly running errands for the world.

At a time when many of us didn’t know what stable meant, Gyan was the epitome of calm. At a time when irresponsibility was common, Gyan was a pillar of prudence.

It’s not that he never let his hair down. His smile was infectious, his laugh a delight. He just knew how to retain balance and limits at a time when many around him didn’t.

I was one of those many.

It was a privilege to have known him, his ability to befriend “warts and all”, unjudging, yet uncompromising in his values. An unconditional love, a covenant relationship.

It was a privilege to have shared his companionship, sometimes in silence, sometimes in gales of laughter.

And it will continue to be a privilege for me to be able to say “I knew Gyan. He was my friend”.

Gyan introduced me to much of the music I listen to, many of the songs that are my favourites. So every time I listen to one of those songs, I’m going to be reminded of Gyan.

Gyan, from whose mouth Not A Negative Word Was Heard.

My thoughts and prayers continue to be with Jayashree, Jiver, and the rest of his family and friends.

Requiescat in pace.

[Photo of Gyan credit Hari Adivarekar].