Category Archives: Psychology

The Role of Emotions in Consumer Behavior

Applying Insights for Innovation

The Role of Emotions in Consumer Behavior: Applying Insights for Innovation

GUEST POST from Art Inteligencia

In today’s fast-paced and competitive market, understanding the role of emotions in consumer behavior is crucial for companies looking to innovate and stay ahead of the curve. Emotions play a significant role in shaping consumer decision-making, influencing what products they buy and how they interact with brands. By tapping into these emotions, companies can create more meaningful and memorable experiences for their customers, leading to increased loyalty and brand advocacy.

Case Study 1: Apple

One company that has successfully leveraged the power of emotions in consumer behavior is Apple. With its sleek design, intuitive user interface, and powerful marketing campaigns, Apple has cultivated a strong emotional connection with its customers. By focusing on the emotional benefits of its products, such as creativity, self-expression, and simplicity, Apple has been able to position itself as a lifestyle brand that goes beyond just selling technology. This emotional appeal has helped Apple maintain a loyal customer base and drive sales year after year.

Case Study 2: Coca-Cola

Another example of a company that has used emotions to drive consumer behavior is Coca-Cola. Through its iconic advertising campaigns, Coca-Cola has been able to evoke feelings of happiness, nostalgia, and togetherness in consumers. By associating its brand with positive emotions, Coca-Cola has created a strong emotional bond with its customers, leading to increased sales and brand loyalty. In addition, Coca-Cola has been able to innovate by introducing new flavors and products that tap into different emotional needs, such as its Diet Coke line for health-conscious consumers.

Innovative companies are increasingly recognizing the importance of emotions in consumer behavior and are incorporating emotional insights into their product development and marketing strategies. By understanding the emotional drivers behind consumer behavior, companies can create products and experiences that resonate with their target audience on a deeper level. This emotional connection can lead to increased brand loyalty, customer satisfaction, and ultimately, business success.

Conclusion

The role of emotions in consumer behavior is a powerful force that companies can harness to drive innovation and growth. By understanding and tapping into the emotional needs and desires of their customers, companies can create products and experiences that truly resonate with their target audience. By applying insights from successful case studies like Apple and Coca-Cola, companies can pave the way for innovation and success in today’s competitive market.

Bottom line: Futures research is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futures research themselves.

Image credit: Pexels

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Change Resistance: Addressing Common Barriers and Overcoming Employee Pushback

Change Resistance: Addressing Common Barriers and Overcoming Employee Pushback

GUEST POST from Chateau G Pato

In today’s dynamically evolving business landscape, organizations are faced with a constant need to adapt and embrace change in order to stay competitive. However, change initiatives often encounter resistance from employees, leading to delays and potentially derailing the desired outcomes. Understanding the common barriers to change and implementing strategies to address them is essential for effective change management. This article explores two case studies that illustrate how organizations successfully overcame employee pushback during transformative change endeavors.

Case Study 1: Implementing a New Performance Management System

Company X, a global technology firm, decided to revamp its performance management system to align with their updated business objectives. The organization aimed to encourage a culture of regular feedback and continuous improvement. Recognizing the resistance that the change might evoke, the management team took proactive steps to minimize employee pushback.

Firstly, the company ensured transparency and clarity by communicating the rationale behind the change. They conducted workshops and town hall meetings to explain how the new system would help employees grow professionally and benefit the organization as a whole. This transparent approach enabled employees to grasp the purpose of the change, which reduced uncertainty and resistance.

Secondly, they involved employees in the process by inviting feedback and suggestions. By incorporating their input, the organization demonstrated a genuine commitment to engaging employees and valuing their opinions. This inclusive strategy not only addressed employee concerns but also fostered a sense of ownership among employees, leading to higher acceptance of the new system.

Lastly, the company offered comprehensive training programs to help employees adapt to the change successfully. By providing resources and support, the organization minimized the fear of the unknown and empowered employees to embrace the new performance management system confidently. Regular check-ins and support forums were also established to provide ongoing assistance.

The combined efforts resulted in a smooth transition with minimal resistance. Employees gradually recognized the benefits of the new system, such as increased collaboration and individual growth opportunities. The successful implementation demonstrated that addressing common barriers and involving employees can drive positive change outcomes.

Case Study 2: Shifting to Remote Work during the COVID-19 Pandemic

Organization Y, a mid-sized consulting firm, faced the daunting challenge of transitioning its workforce to remote work amidst the COVID-19 pandemic. While the magnitude of the global crisis was beyond anyone’s control, the management team anticipated the potential resistance from employees during such a sudden transformation.

To overcome employee pushback, the company took proactive measures to support its employees’ transition to remote work. The first step was to ensure open and transparent communication channels. Frequent virtual meetings were conducted to address concerns, provide updates, and clarify expectations. This continuous dialogue improved employee morale and reduced anxiety about the uncertainties associated with remote work.

Understanding that remote work would alter the dynamics of collaboration, the organization invested in collaborative tools and technologies. Platforms like Microsoft Teams and Zoom were introduced to facilitate seamless virtual communication, ensuring effective teamwork and maintaining a sense of connection among employees.

To combat the potential feelings of isolation, the company also organized virtual team-building events, such as online happy hours and game nights. These activities helped foster a sense of camaraderie and provided an emotional support system during a challenging time.

Through these efforts, Organization Y successfully minimized employee resistance and maintained productivity during the transition to remote work. The crisis ultimately pushed the organization to adopt more flexible work practices, resulting in increased employee satisfaction and reduced operational costs.

Conclusion

Change resistance is an inevitable component of any transformative journey, but it does not have to hinder progress. By acknowledging common barriers, understanding employee concerns, and implementing strategies like transparent communication, employee involvement, and ongoing support, organizations can successfully overcome pushback. The case studies of Company X and Organization Y demonstrate that addressing resistance can lead to positive change outcomes and foster a resilient organizational culture capable of embracing future transformations.

EDITOR’S NOTE: Braden Kelley’s Problem Finding Canvas can be a super useful starting point for doing design thinking or human-centered design.

“The Problem Finding Canvas should help you investigate a handful of areas to explore, choose the one most important to you, extract all of the potential challenges and opportunities and choose one to prioritize.”

Image credit: Unsplash

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Designing Products with Emotional Intelligence

Understanding User Needs and Desires

Designing Products with Emotional Intelligence: Understanding User Needs and Desires

GUEST POST from Chateau G Pato

In today’s competitive market, many companies strive to create products that not only meet customer needs but also evoke emotions and build meaningful connections. This approach is known as designing products with emotional intelligence. By understanding and addressing user needs and desires, companies can create products that resonate with customers on a deeper level, leading to increased customer satisfaction, loyalty, and ultimately, business success. This article explores the concept of designing products with emotional intelligence and provides two case study examples.

Case Study 1: Apple iPhone – A seamless blend of aesthetics and functionality

One of the most successful examples of designing products with emotional intelligence is the Apple iPhone. When the first iPhone was introduced in 2007, it revolutionized the mobile phone industry by offering a seamless blend of aesthetics and functionality. Apple understood that customer needs extended beyond mere features and specifications. They realized that customers desired a device that was not only technologically advanced but also visually appealing and user-friendly.

Apple’s designers focused on creating an emotional connection with their users by prioritizing the user experience. The iPhone’s sleek design, intuitive interface, and user-friendly features addressed the desires of consumers who craved a mobile device that was not only functional but also aesthetically pleasing. As a result, the iPhone became an iconic product, renowned for its emotional appeal, and established Apple as a leader in the smartphone industry.

Case Study 2: Airbnb – Creating a sense of belonging and personalization

Another prime example of designing products with emotional intelligence is Airbnb. The company recognized that travelers often desired a more intimate and authentic travel experience than what traditional hotels could offer. To meet these needs and desires, Airbnb created a platform that allows homeowners to rent out their properties to travelers, enabling them to experience local culture instead of staying in impersonal hotel rooms.

Airbnb’s success can be attributed to the emotional connection it established with its users. By focusing on personalization, the company ensured that travelers felt a sense of belonging while staying at a stranger’s home. The platform allows users to explore various listings, read reviews, and communicate with hosts, fostering trust and creating an emotional bond before booking. Additionally, by providing personalized recommendations based on user preferences, Airbnb delivers a tailored experience that aligns with each user’s desires, making them feel valued and understood.

Conclusion

Designing products with emotional intelligence is crucial for companies aiming to create meaningful connections with their customers. Understanding user needs and desires enables businesses to go beyond functional features and address the emotional aspect of product experiences. By focusing on emotional intelligence, companies like Apple and Airbnb have achieved tremendous success. By crafting products that not only meet practical needs but also evoke positive emotions, companies can build a loyal customer base and differentiate themselves in today’s competitive market. Ultimately, the key to designing products with emotional intelligence lies in empathizing with users, delving into their desires, and creating experiences that resonate with their emotions.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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The Psychology of Creativity: Tapping into the Inner Innovator

The Psychology of Creativity: Tapping into the Inner Innovator

GUEST POST from Art Inteligencia

Creativity is often perceived as a mysterious and intangible quality possessed by only a few select individuals. However, research in psychology has shed light on the inner workings of creativity, revealing that it is indeed a skill that can be nurtured and developed. By understanding the psychology of creativity, we can tap into our inner innovator and unlock the potential to generate novel and groundbreaking ideas. In this article, we will delve into the underlying principles of creative thinking and explore two case study examples that highlight the power of harnessing our innate creative abilities.

Case Study 1: Pixar Animation Studios

Pixar Animation Studios has redefined the world of animated films, continuously producing groundbreaking movies that captivate audiences of all ages. A key aspect of Pixar’s success lies in their commitment to fostering a creative environment. At Pixar, employees are encouraged to embrace their inner child-like curiosity, enabling them to think outside the box and bring novel ideas to the table. The company recognizes that creativity flourishes when individuals feel safe to take risks and voice their opinions.

Furthermore, Pixar adopts a collaborative approach that capitalizes on the power of diverse perspectives. They value the input of every team member, regardless of their role, fostering an egalitarian atmosphere where ideas can flow freely. By recognizing that creativity can come from anyone and anywhere within their organization, Pixar taps into the collective creative potential of their workforce.

Case Study 2: Warby Parker

Warby Parker revolutionized the eyewear industry by creating a consumer-centered business model that disrupted traditional retail habits. The founders of Warby Parker recognized that creativity is closely intertwined with empathy, understanding that true innovation arises from a deep understanding of the consumer’s needs and desires. They observed an opportunity to deliver stylish, affordable eyewear to customers who were tired of overpriced, limited options.

By conducting extensive market research and seeking insights into customer pain points, Warby Parker developed a disruptive direct-to-consumer model. The company’s innovative home try-on program, which allows customers to sample several frames before making a purchase, was born from this empathetic approach. Warby Parker’s success story demonstrates that creativity, when rooted in empathy, can redefine industries and challenge established norms.

Unpacking the Psychology of Creativity

Creativity is not a magical quality that only exists within a select few; it is a skill that can be developed and enhanced. The psychology of creativity unveils several key principles that can help individuals tap into their inner innovator:

1. Embrace a growth mindset: Adopting a growth mindset, as proposed by psychologist Carol Dweck, is crucial for nurturing creativity. Believing that creativity is a malleable skill fosters a willingness to learn and experiment, empowering individuals to explore new ideas fearlessly.

2. Cultivate curiosity: Curiosity is a driving force behind creativity. By maintaining a sense of wonder and actively seeking new experiences, individuals can broaden their perspectives and find inspiration in unexpected places.

3. Create a supportive environment: Environment plays a significant role in fostering creativity. Nurturing a culture that celebrates diverse ideas, encourages risk-taking, and rewards out-of-the-box thinking creates the ideal conditions for creative thinking to thrive.

Conclusion

The psychology of creativity reveals that everyone has the potential to tap into their inner innovator and generate game-changing ideas. By embracing a growth mindset, cultivating curiosity, and creating a supportive environment, individuals and organizations can unlock their creative potential. Case study examples, such as Pixar Animation Studios and Warby Parker, showcase the transformative power of embracing creative thinking. Indeed, the psychology of creativity teaches us that by harnessing our innate imaginative abilities, we can push the boundaries of what is possible and drive meaningful change in the world.

Bottom line: Futures research is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futures research themselves.

Image credit: Pexels

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The Role of Diversity and Inclusion in Fostering Innovation

The Role of Diversity and Inclusion in Fostering Innovation

GUEST POST from Chateau G Pato

In today’s rapidly changing world, innovation is the driving force behind success and growth for any organization. To keep up with the ever-evolving market demands, companies are increasingly recognizing the importance of embracing diversity and fostering inclusion within their workforce. The impact of a diverse and inclusive environment goes beyond just social justice; it also plays a pivotal role in fostering innovation and driving business competitiveness. Let’s explore some case study examples that highlight the role of diversity and inclusion in promoting innovation.

Case Study 1: Google’s Employee Resource Groups

Google, a global technology leader, has long been known for its commitment to diversity and inclusion. One of the ways they promote a diverse and inclusive workforce is through their Employee Resource Groups (ERGs). These ERGs are voluntary, employee-led groups that aim to create a sense of belonging for underrepresented groups. By bringing together employees with diverse backgrounds, experiences, and perspectives, Google’s ERGs have become catalysts for innovation. These groups provide a platform for employees to connect, share ideas, and contribute to problem-solving, resulting in innovative solutions that address a wide range of challenges. For instance, the Black Googler Network (BGN) launched an initiative called “CS in Color” to address the racial disparities in computer science education. Through this program, BGN empowered students of color with coding skills, driving innovation by diversifying the tech industry’s talent pool.

Case Study 2: Johnson & Johnson’s Open Innovation Program

Johnson & Johnson (J&J), a multinational healthcare company, recognizes that embracing diversity contributes to its innovation efforts. They have implemented an open innovation strategy that emphasizes collaboration with external partners. In 2011, J&J established the Diversity & Inclusion External Innovation Council to enhance diversity and inclusion in their external collaborations. By partnering with entrepreneurs, startups, and diverse suppliers, J&J aims to foster innovation by tapping into a broader pool of ideas and solutions. By embracing diversity in their external partnerships, J&J has been able to drive breakthrough innovations in various therapeutic areas. For example, their collaboration with a small biotech company led to the development of a groundbreaking treatment for multiple myeloma, a type of blood cancer. By incorporating diverse perspectives and leveraging external partnerships, J&J has been able to stay at the forefront of healthcare innovation.

These case study examples demonstrate that diversity and inclusion play a vital role in fostering innovation. By embracing employees with different backgrounds, experiences, and perspectives, organizations can tap into a vast array of ideas and approaches. Diversity of thought and perspectives fuels creativity, leading to innovative solutions and increased competitiveness. Furthermore, inclusion ensures that diverse voices are heard, valued, and given the opportunity to contribute fully, resulting in a more collaborative and innovative work environment.

Conclusion

To fully reap the benefits of diversity and inclusion, organizations must focus on creating an inclusive culture that promotes psychological safety, encourages diverse perspectives, and supports collaboration. By doing so, organizations can foster an innovative culture where everyone feels empowered to contribute their unique ideas and drive positive change.

Diversity and inclusion are not only moral imperatives but also powerful enablers of innovation. Embracing diversity within the workforce promotes creativity, fuels innovation, and results in solutions that meet the needs of an increasingly diverse customer base. By fostering an inclusive environment where every voice is valued and heard, organizations can drive innovation, unlock new opportunities, and ensure long-term success in today’s fast-paced and competitive world.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: misterinnovation.com

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The Psychological Impact of Change

Understanding the Emotions and Reactions Individuals Experience During Times of Change and How to Effectively Support Them

The Psychological Impact of Change

GUEST POST from Art Inteligencia

Change, whether anticipated or unexpected, often triggers a wide range of emotions and reactions in individuals. Understanding the psychological impact of change is crucial for organizations, leaders, and support networks to effectively assist individuals in navigating these turbulent times. In this article, we explore the common emotions and reactions people experience during change, followed by two case study examples that demonstrate the diverse range of responses. Additionally, we offer effective strategies to support individuals during periods of change, fostering resilience and facilitating positive adaptation.

Emotions Experienced During Change

Change has the potential to instigate a rollercoaster of emotions. Fear, uncertainty, and anxiety are common responses as individuals face a shift from familiar routines and into the unknown. Feelings of sadness, grief, and loss may also emerge as people let go of what they once knew or valued. Conversely, excitement, anticipation, and hope can accompany positive changes, serving as beacons guiding individuals towards new possibilities. Recognizing and acknowledging these emotional responses is crucial to provide appropriate support during times of change.

Case Study One: Jenna’s Job Loss

Jenna had been working at the same company for 15 years when she suddenly received news of her redundancy. She felt overwhelmed by a profound sense of loss, as her job had been a significant part of her identity. Initially, Jenna experienced shock and denial, followed by anger and frustration. With the support of her colleagues, she gradually accepted the situation and embarked on a journey of self-discovery. By attending career transition workshops and receiving counseling, Jenna eventually embraced the opportunity to explore new professional avenues. With resilience and determination, she transformed a seemingly devastating change into a personal growth experience.

Case Study Two: Sam’s Relocation

Sam, a 10-year-old boy, was informed by his parents that they would be relocating to a new city due to a job transfer. Sam’s immediate reaction was that of fear and sadness. He worried about leaving his school, friends, and familiar surroundings behind. Acknowledging Sam’s emotions, his parents engaged him in open communication and involved him in the relocation process. They encouraged Sam to express his thoughts and concerns, reassuring him that they would provide support throughout the transition. By focusing on the positive aspects of the move, like new friends and exciting opportunities, Sam gradually became more receptive to the change, ultimately adapting to his new environment with a sense of curiosity and resilience.

Support Strategies During Change

To effectively support individuals during times of change, several strategies can be implemented:

1. Clear Communication: Open and honest communication is vital. Providing individuals with information about the change, reasons behind it, and potential benefits helps reduce uncertainty and anxiety.

2. Provide Resources: Offering resources such as counseling, dedicated support teams, or external assistance equips individuals with tools and guidance to navigate the transition.

3. Encourage Resilience: Foster a supportive environment that encourages resiliency. Highlight the potential for personal growth, emphasizing adaptability and strength in overcoming challenges.

4. Empathy and Active Listening: Validate individuals’ emotions and actively listen to their concerns. By acknowledging their feelings, you create a safe space for them to express themselves and feel heard.

Conclusion

Change brings forth a variety of emotions and reactions in individuals, ranging from fear and uncertainty to excitement and hope. Through understanding and acknowledging these responses, individuals can effectively navigate change and harness the opportunity for personal growth and adaptation. By implementing support strategies, fostering open communication, and validating emotions, we can create an environment that effectively supports individuals during times of change, enabling them to flourish and thrive in the face of uncertainty.

Image credit: Pexels

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What is Social Analysis?

What is Social Analysis?

GUEST POST from Art Inteligencia

Social analysis is the practice of understanding how individuals, groups, and societies interact with each other and how they are structured. It is an interdisciplinary field of study that draws on various methods and theories from the social sciences, including sociology, psychology, and anthropology.

Social analysis seeks to explain why social relationships and institutions take the forms they do, how they are maintained, how they change, how they are experienced, and how they are shaped by broader social, economic, and political contexts. In addition, social analysis is used to identify and address social problems, as well as to develop strategies for social change.

The term social analysis is often used interchangeably with other terms, such as social research, social science, and social theory. However, social analysis is distinct from these other terms in its focus on understanding the social dynamics of a particular situation. Social analysis is not only concerned with the empirical data collected from a certain society, but also with understanding the underlying social forces that shape its dynamics.

Social analysis often employs a variety of methods, such as interviews, surveys, and participant observation. In addition, it can draw on other sources of data, such as archival records, census data, and quantitative analysis.

Social analysis is an important tool for understanding the complexities of social life. It provides insights into how individuals and groups interact, how they are structured, and how they are shaped by larger social and economic forces. Social analysis can also be used to identify and address social problems, as well as to develop strategies for social change.

Image credit: Pixabay

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Fix the Problem or Design it Out?

Fix the Problem or Design it Out?

Let’s start with the problem.

According to The Plastic Pollution Coalition (January 3, 2017) – “It’s National Drinking Straw Day! Each day, more than 500 million plastic straws are used and discarded in the U.S. alone. Plastic straws consistently make the top ten list of items found, according to Ocean Conservancy’s International Coastal Cleanup data. In the last three years, plastic straws have climbed the list to the Number 5 spot.”

The Paper Straw Movement

In response to this growing problem, in January California made it illegal to give customers plastic straws unless they expressly request one.

Another way some restaurants have tried to to fix this problem has been to replace plastic straws with paper straws.

Or then there is the tasty fix to the problem, the cookie straw.

Starbucks Cookie Straw

But there is another way to approach problem solving, and that is to design out the problem instead of trying to fix it.

Recently a barista at Starbucks accidentally gave me a lid on my water cup that I wasn’t expecting.

I had heard that Starbucks was planning to reduce their use of the iconic green plastic straw, but I kind of assumed that meant they were shifting to paper straws like some other quick serve restaurants, but that is not what they have in mind at all.

Starbucks is instead planning to eliminate the plastic straw.

Instead of focusing on the straw they instead chose to focus on the lid and design it in a way that a straw isn’t even necessary.

Starbucks Sippy Cup

So, next time you’re wrestling with a problem and trying to solve it, look at it in a slightly different way just for fun, try asking yourself how you could design the product, service, or experience (or all three) in order to design out the problem.

You may or may not get to a more viable, desirable, and feasible solution than trying to fix the problem.

But, looking at the problem from a range of different perspectives is always worth the effort.

Keep innovating!


Accelerate your change and transformation success

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Why Change is Accelerating

Why Change is Accelerating

In previous articles I’ve spoken about how the pace of change is accelerating, and how for many people (and organizations) things are changing so fast that they feel overwhelmed and that things may be changing faster than some of us humans are able to absorb. I’ve spoken about how we are in the middle of a period of discontinuity thrust upon us by the rapid advances in computing and mobile connectivity that have put a supercomputer in everyone’s pocket and a target on most organizations’ backs.

Why are things changing so fast?

Is it that we’ve hit some sort of inflection point never achieved before in human history that is allowing us to innovate and displace the status quo faster than ever before?

Maybe.

Have we reached some sort of perfect storm where the innovation curve has gone vertical and the singularity will be here tomorrow?

Probably not.

So if we are not necessarily innovating faster than ever before or destined to reach the singularity tomorrow and become one with machines, then what is creating the feeling that things are changing more rapidly?

One word…

“Expectations”

Changing Customer Expectations

It feels as if the world is changing faster than ever before because the expectations of our customers and our expectations as customers are changing faster than ever before. Why?

Because we as consumers are seeing better customer experiences enabled by digital technologies in parts of our personal lives and more efficient and effective business processes in parts of our business lives, we are now expecting every organization (not just companies) and every aspect of that organization to deliver an efficient, effective experience and information exchange in whatever channel we choose, whenever we want to experience it.

This incredible change in expectations is being thrust upon all organizations simultaneously and threatening the very existence of entities that have existed for dozens or even hundreds of years. This discontinuity has created immense technical debt for organizations large and small to overcome and the only way for an incumbent organization to recover and to survive in this new digital age will be to undergo a complete digital transformation.

This doesn’t mean creating a digital strategy to address one part of the organization or a single constituency, but a path to a complete transformation that brings digital approaches to both every part of the organization and its operations, but also to all of its constituencies, at the same time. This means re-imagining every system, every policy, every procedure, and every process as a digital native organization looking to enter and disrupt your industry might, and then make a plan for transforming yourself. This will require IMMENSE amounts of change, and is no small task given the 70% change failure rate, but it is the key to your organization’s survival.

The problem is that the organizational change thought leadership status quo isn’t up to the task of planning and executing the scope and scale of change required for existing organizations to survive the digital evolution underway. A new set of tools is needed. My new book Charting Change and the accompanying Change Planning Toolkit™ were designed to inspire a change revolution to free people from the tyranny of the blank word document and poorly planned change efforts.

Why the Pace of Change is Accelerating

Economics 101

Because the challenge we face is not a static one. Organizations that focus on catching up to where the customer is today and wedging their efforts into existing budget constraints are those that will find themselves falling further behind the curve of changing customer expectations.

No longer is it a victory to be seen by customers as ‘best in class’. No, now customers are expecting every organization to be ‘world class’. This means that increasingly customer satisfaction will be achieved only by providing one of the best experiences in the world. Talk about changing expectations!

And so given the time to develop new technology solutions, you should be aiming not to incrementally improve your current experience to get closer to the leaders in your industry, but instead investing in a solution that will anticipate what the best customer experience allowed by technology 12-18 months from now and start building that instead.

It’s Economics 101 all over again. In today’s reality, as most organizations seek to move up the customer experience supply curve, the customer experience demand curve is constantly shifting outward, leading your share of the market to wither and die unless you make the strategic investment required to actually shift your customer experience (CX) supply curve outward as well.

I’ve tried to capture the scenario in the figure above titled ‘Why the Pace of Change is Accelerating’. Most organizations when they see at Time0 that their level of customer experience is below Customer Expectations0 they invest in projects to increase their CX Supply0 up the CX Supply curve to CX Supply1 thinking that they will then be meeting the customers’ level of expectations at Time1. But that’s not how it works in the digital world of today, as customer expectations are changing (shifting upward) just as fast as the technology used to create better customer experiences. So, organizations that invest in moving up the CX Supply curve to catch up with current customer expectations find themselves continuously falling short of future customer expectations.

Conclusion

The reason nearly every organization follows this approach of climbing the CX Supply curve to close the gap on customer expectations is usually financial. Most managers are forced (or compelled) to try and close the gap with existing budgetary resources and by creating a digital strategy as part of these efforts. Very few organizations have visionary leaders willing to invest in a digital transformation and fundamentally re-think the architecture and capabilities the organization needs to successfully compete in a digital age. Very few organizations see how to properly use technology to fulfill the mission of the organization and to exceed customer expectations, and as a result create a shift outwards in the CX Supply Curve itself.

Choosing not to digitally transform your organization, creates the space in the market for new digital native organizations to enter and establish a beachhead and attack the incumbents.

At the same time, as our world and organizations continue to digitize this will result in decreasing variable costs and increasing fixed costs, leading to increased consolidation in many fragmented industries. Those organizations bold enough to invest in shifting their customer experience supply curves outward by undergoing a true digital transformation will improve their position to be a buyer instead of a seller as this consolidation occurs. So the real question is…

If we are living in an era of survival of the digital fittest, which side of the digital evolution do you want to be on?

I hope you’ll join the change revolution, get your copy of Charting Change today and check out the Change Planning Toolkit™!

Image credit: Winggz.com

Accelerate your change and transformation success

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Measuring Change Readiness

Measuring Change ReadinessAre you and your organization ready for change?

Too often organizations define the change effort they want to pursue without first identifying whether there are people, resources, legislation, etc. present that must be in place before the change effort can begin. We will explore the circumstances you may want to explore before beginning any change effort and the areas to explore as potential prerequisites to the change program and its eventual success.

During the course of any change initiative many different challenges will appear, and the most successful change efforts will anticipate those challenges and have a plan for dealing with them. Part of that anticipation begins with identifying how ready the organization is for change.

The Change Planning Toolkit™ is designed to assist your change planning team by making the planning process easier with its collection of 50+ frameworks, methodologies and other tools.

One of the keys to change planning success is carefully identifying the prerequisites for change, including:

  1. What must we know? (Knowledge)
  2. What must we have? (Tools)
  3. What must be completed? (Foundation)

This information is captured in one of the worksheets in the toolkit.

One other concept we should stop and discuss briefly is the idea of change saturation. This concept captures the idea that organizations in general, and certain individuals in specific, can only absorb so much change at one time. One frequent occurrence with change efforts is the situation where more than one project or larger change effort may require the same human, financial, physical, information or other resources at the same time. To become aware of this situation and to enable you to work to mitigate the effects of change saturation, you will want to build a heat map identifying the different timing, duration, and intensity of the different requirements all of the different projects and change efforts will place on the different types of resources within the organization. This too is a prerequisite.

Another prerequisite for change is having a deep understanding for what the current state looks like, including having answers for the following:

  • Who is feeling the pain? Pushing for the change?
  • What is the pain caused by the current state?
  • Where is the bulk of the change likely to take place?
  • When did the current state start causing pain?
  • Why is the change being pursued

These questions can be asked and answered during your change planning session, but they must be asked and the answers must be integrated into your examination of your readiness for this change BEFORE you actually begin the change.

An additional prerequisite for change is also having a deep understanding for what the desired state will look like, including answers for the following:

  • Who are we making this change for? Who will feel the greatest benefit from this change?
  • Where will the resources and support come from?
  • When do we need/want to complete the change process by? Is there a legal deadline?
  • What solution would we like to see in place?
  • Why is this solution better than the status quo?

Finally, to be ready to pursue a change the organization must have people in place to look after each of the Five Keys to Successful Change and should be familiar with both the Architecting the Organization for Change framework and my PCC Change Readiness Framework (these are three of the free downloads from the toolkit).

My PCC Change Readiness Framework focuses on the psychology of key groups surrounding the identified change, the capabilities needed to successfully execute the change, and the organization’s capacity to tackle this change effort (along with everything else).

PCC Change Readiness Framework

You will notice that I don’t speak about organizational psychology or culture in my PCC Change Readiness Framework. The reason I don’t highlight culture in the same way that many other people do is that in today’s more social, customer-centric business, we must look more broadly than the typical inward focus of company culture when it comes to identifying the readiness of not only employees, but leaders, customers, and partners too. Inevitably many of our change efforts will have some impact on one or more external groups (possibly even non-profit entities and one or more governments).

You will notice that within the PSYCHOLOGY box there is a common focus on the mindsets, attitudes, beliefs and expectations of the individuals. Culture is incorporated into the psychology realm by focusing on what the shared understandings are around the potential change, but more broadly too. And, finally you will notice that my PCC Change Readiness Framework highlights the need for successful change efforts to move towards gaining commitment to the change from leadership, acceptance of the change by employees, and a desire for the change from customers and partners.

Within the CAPABILITY box of my PCC Change Readiness Framework we must investigate whether our change effort has any regulatory or statutory implications and whether we are ready to adapt, adopt or influence the changes necessary in this sphere. We must also ask ourselves a series of questions:

  1. “Do we need to get permission from anyone to do this?”
  2. “What knowledge, skills, and abilities needed for this change do we already possess?”
  3. “What knowledge, skills, and abilities needed for this change do we need to acquire?”
  4. “What relationships do we possess that will be useful in advancing the change?”
  5. “What relationships do we need to build to help advance the change?”
  6. “What are the enablers of making this change successful?”

Within the CAPACITY box we have to look at where our resources are approaching, or have already achieved, change saturation. This means they are unable to productively participate in any more change efforts or adopt any more change. But we also have to look at the availability of our resources:

  1. Human
  2. Financial
  3. Physical
  4. Information
  5. Executive Sponsors
  6. Space in our desired communication channels

It is easy to take for granted that the organization will have the capacity to undertake your change effort, but often there are capacity constraints that you will run into, especially as the pace and volume of change increases inside an organization. The one that is easiest to overlook and fail to plan for, is making sure that you’re going to be able to communicate your change messages in your desired messaging channels (they may already be full).

There is a worksheet that goes with the PCC Change Readiness Framework that will help you capture information around the:

  • History
  • Capability
  • Capacity
  • Partners
  • Context
  • Leadership
  • Employees
  • Customers
  • Shared Understanding
  • Strategic Alignment (Commitment)
  • Cultural Alignment (Acceptance)
  • Brand Alignment (Desire)

EDITOR’S NOTE: I’ve gone ahead and created a free downloadable flipbook PDF for people to grab. It was inspired by Braden’s article titled Change the World – Step Two, which was the follow-up predictably to Change the World – Step One.

PCC Change Readiness Framework Flipbook

You will find these companion tools for the PCC Change Readiness Framework in the Change Planning Toolkit™ to download for printing and use in your collaborative exploration of your change readiness.

Get Your Copy of Charting ChangeIn my next book Charting Change we will investigate additional aspects of change readiness and have a special section from one of my invited guest experts in the book, Beth Montag Schmaltz of PeopleFirm looking at several topics including change fatigue, where the change threshold lies, why people resist change, how to reduce change fatigue, how to build change capability, what change capable employees look like, and how you can embed change behavior into the very fabric of your organization.

The book is available for pre-order, and has received several strong endorsements, so I hope you’ll pick up a copy (or one for each member of your team). You can find more information on the Charting Change book page.

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