Next Generation Loyalty – Part One

2 Replies

Next Generation Loyalty - Part One

Loyalty Archaeology™

Excavating Sources of Next Generation Loyalty

Marketers have an overly optimistic perspective on customer loyalty and their implementations of customer loyalty programs.

The reality is that very few customers are loyal and much of what we speak of as customer loyalty is no more than repeat transaction behavior.

Customer Loyalty Programs Are Really Just Discount Programs

If we are honest as marketers, today’s typical customer loyalty program is no more than an a way of automatically gathering purchase data and distributing discounts. Today’s traditional points-based customer loyalty program is actually just a fancy and often costly discounting program because smart marketers only use discounting to capture sales that would not otherwise have occurred. As soon as you begin distributing discounts to people that would have purchased anyways, then you are cannibalizing your own profit margins.

If you want to dispute that a points-based loyalty program is nothing more than a discounting program, you have to look no further than web sites that quantify the value of points given for airline miles, hotel stays, etc.

So what is customer loyalty?

According to the Oxford Dictionaries, loyalty is a strong feeling of support or allegiance.

In a business sense, most people look at customer loyalty as a measure of how likely a customer is to do repeat business with a company or brand.

But this way of looking at customer loyalty is too easy to “achieve” and is more related to repeat purchase behavior than true loyalty. The definition of loyalty in Oxford Dictionaries is too weak as well.

True loyalty (customer or otherwise) is when someone engages in a behavior that is not in their most obvious best interest because of a higher commitment.

A United States Marine putting himself or herself in harm’s way to recover a wounded comrade from the battlefield is a demonstration of true loyalty.

A customer paying a higher price for an identical product could be a demonstration of loyalty, but could also be an example of brand value or linked to other intangible, often emotional sources of value not directly linked to the product itself (desire to support a company’s social purpose, affinity for cartoon characters used to promote the product, etc.)

A customer paying a lower price for an identical product because you’re giving them a “loyalty program” discount is not a sign of loyalty.

Focusing on the interfaces and experiences related to your products, services and solutions and their surrounding emotional components are more likely to engender loyalty than building a points-based program.

I’m not saying points-based programs are bad, but let’s be clear – they’re not loyalty programs, they’re great for gathering customer purchase data and helping to drive repeat purchase behavior. But, if your competitor offers a better points program you’re likely to lose your supposedly loyal customers.

What does a Next Generation Loyalty program look like?

A Next Generation (aka NextGen) Loyalty program has very little to do with points and promotions, but instead focuses on identifying and leveraging the variables that represent opportunities to create actual loyalty for your brands and their associated products, services and solutions.

Next Generation Loyalty programs can only be created if you understand where the value comes from for each of your products, services and solutions.

Innovation Resonance Venn Diagram

In my popular article “Innovation is All About Value” I highlighted the fact that there are three key value considerations in the pursuit of innovation:

  1. Value Creation is pretty self-explanatory. Your innovation investment must create incremental or completely new value large enough to overcome the switching costs of moving to your new solution from the old solution (including the ‘Do Nothing Solution’). New value can be created by making something more efficient, more effective, possible that wasn’t possible before, or create new psychological or emotional benefits.

  2. Value Access could also be thought of as friction reduction. How easy do you make it for customers and consumers to access the value you’ve created. How well has the product or service been designed to allow people to access the value easily? How easy is it for the solution to be created? How easy is it for people to do business with you?

  3. Value Translation is all about helping people understand the value you’ve created and how it fits into their lives. Value translation is also about understanding where on a continuum between the need for explanation and education that your solution falls. Incremental innovations can usually just be explained to people because they anchor to something they already understand, but radical or disruptive innovations inevitably require some level of education (often far in advance of the launch).

All three are defined in the article on the link above and were created in an innovation context, but there is no reason they couldn’t also be used in a marketing context to identify potential sources of customer loyalty to be leveraged or enhanced.

Another great way to work backwards to identify potential sources of customer loyalty is to leverage A Practical Model for Jobs to be Done (JTBD) from Jim Kalbach. The six components laid out in his graphic below being:

  1. Situation
  2. Motivation
  3. Desired Outcome
  4. Functional Jobs
  5. Emotional Jobs
  6. Social Jobs

Practical Model for Understanding Jobs to be Done from Jim Kalbach

Using Loyalty Archaeology™ to Uncover Sources of NextGen Loyalty

These two simple frameworks give you a great place to start your quest for Next Generation Loyalty. Using Loyalty Archaeology™ to understand potential sources of loyalty will provide the foundation for building a potential program of loyalty enhancements.

You might be sensing that there is no one size fits all when it comes to NextGen Loyalty, and you’d be right.

What insights about the sources of your customers’ loyalty do you think these frameworks can provide?

What other tools do you think would be useful in excavating sources of potential customer loyalty?

In the next article in this series we’ll look at how to take the insights on customer loyalty sources and build a program of initiatives to enhance and accelerate your sources of unique customer loyalty. We’ll also look at how to go beyond points and redemption to leverage different parameters in your program of initiatives to build Next Generation Loyalty!

Image credits: Pixabay, Braden Kelley and Jim Kalbach

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

How to Scale Your Culture

1 Reply

How to Scale Your Culture

GUEST POST from Arlen Meyers

Facebook, Apple, Boeing, McDonald’s and Starbucks are not the only high profile companies that have lost their way as they just got bigger and bigger. Experts and pundits will offer many reasons, some organizational and some more personal about the CEO and the leadership team. Just read the transcripts and review the videos of Congressional hearings about companies breaking bad as they are conducted, seemingly, on a more regular basis. Or, you can see the highlight reel on 60 Minutes or YouTube.

Most would agree, though, that a main cause of a company loosing its bearings during explosive growth is a loss of culture. The term “company culture” is something of a nebulous concept, but most culture professionals can agree on the very basics of a definition. In short, company culture is defined as a shared set of values, goals, attitudes and practices that make up an organization. How an organization goes about crafting its own culture is totally up to them .

In other words, culture is mostly about “how we do things around here”.

The US “healthcare” system is actually a dysfunctional sickcare system of systems masquerading as a healthcare system that includes academic medical centers, community hospitals, government hospitals and other health service organizations. Recent entrants include retailers, online vendors and pharmaceutical companies.

I have worked in many of these kinds of organizations. They all have a unique culture. Working in a VA hospital is much different than working in a for profit community integrated delivery network. In fact, one of the main causes of failed mergers, acquisitions or hospital consolidations is “cultural mismatch”.

The average tenure of a hospital CEO is 5.6 years with a median of 3.6 years. Very few (3.4%) had continuous tenure of 20+ years. Half (51%) had previously been a CEO at another hospital. First-time CEOs were often (57%) promoted from within their organizations.

So, how do you scale culture when the music stops for one CEO and starts for another as consolidation relentlessly surges forward?

Here is an anthology of culture continuity hacks:

  1. Forbes
  2. Harvard Business Review
  3. Bob
  4. 15five
  5. Inc
  6. What about scaling culture during the pandemic?

Some have observed that company culture is a reflection of the founder or leader. But, once the founder goes, pong, pool and picnics will only get you so far. Instead, many will get lost in the wilderness next to where you are holding your koombaya event including your investors and bankers.

I once worked with a Dean who remarked, “The problem is that we have no soul”

Rounding up stakeholders and getting them back to base camp is not something you will learn in scaling school ,medical school or your health adminstration degree program. 

Not learning how to scale culture, however, is career suicide.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Balancing the Need for Structure and Flexibility in Change Management Plans

Leave a reply

Balancing the Need for Structure and Flexibility in Change Management Plans

GUEST POST from Art Inteligencia

In the ever-evolving landscape of modern business, change is a constant. Organizations face continuous pressure to adapt to new market demands, technological advancements, and internal challenges. As a result, change management has become an indispensable discipline to ensure smooth transitions and sustained organizational success. However, one of the fundamental dilemmas in change management is achieving the right balance between structure and flexibility.

Too much structure can stifle creativity, slow down the process, and lead to resistance from employees. On the other hand, too much flexibility can result in chaos, lack of accountability, and ultimately, failure to achieve the desired objectives. The key lies in finding the sweet spot that allows for both structured approaches and adaptable methodologies. In this article, we will explore how to strike this balance with insights from two real-world case studies.

Case Study 1: A Manufacturing Giant Finds Its Balance

Company: XYZ Manufacturing Inc.
Industry: Manufacturing
Challenge: Adapting to new digital technologies

XYZ Manufacturing Inc., a leader in industrial equipment manufacturing, faced a significant challenge in adapting its legacy systems to incorporate new digital technologies like IoT sensors and advanced analytics. To navigate this transformation, the company initiated a comprehensive change management plan.

Structured Approach: XYZ Manufacturing Inc. began with a detailed impact analysis to identify areas most affected by the change. This analysis informed the development of a structured roadmap with clear milestones, deadlines, and well-defined roles and responsibilities. Additionally, the company established a Change Management Office (CMO) responsible for overseeing the implementation of the plan, ensuring that each department adhered to the predefined guidelines.

Flexibility: Despite the rigid structure, the CMO recognized the importance of flexibility to adapt to real-time scenarios. For instance, during the implementation of new IoT sensors on the factory floor, unexpected technical glitches occurred. Instead of rigidly sticking to the initial timeline, the CMO allowed for flexibility in the schedule and allocated resources to troubleshoot the issues. Feedback loops were established to gather insights from employees on the ground, which led to iterative adjustments in the implementation plan.

Outcome: By balancing structure with flexibility, XYZ Manufacturing Inc. successfully integrated digital technologies into its operations, resulting in enhanced productivity and reduced downtime. The company’s ability to adapt swiftly to challenges without derailing from its overall plan was pivotal to its success.

Case Study 2: A Healthcare Provider’s Agile Transformation

Company: HealthPlus Services
Industry: Healthcare
Challenge: Implementing Electronic Health Records (EHR)

HealthPlus Services, a prominent healthcare provider, embarked on an ambitious project to implement an Electronic Health Records (EHR) system across its network of hospitals and clinics. The aim was to improve patient care, streamline operations, and ensure compliance with industry regulations.

Structured Approach: The project kicked off with a meticulous planning phase, involving cross-functional teams from IT, medical staff, and administration. A project charter was established, outlining objectives, timelines, and key performance indicators. Comprehensive training programs were designed to ensure that all medical staff were proficient in using the new EHR system. Regular progress reports and checkpoints were set up to monitor adherence to the plan.

Flexibility: Despite the detailed planning, HealthPlus Services understood that the healthcare environment is dynamic and unpredictable. They adopted an agile methodology, allowing for adaptive changes throughout the project. When initial rollouts revealed user-interface challenges and resistance from some medical staff, the organization swiftly pivoted by incorporating their feedback into system enhancements. Additionally, they extended the training programs and introduced peer mentors to provide on-the-ground support.

Outcome: Through a balanced approach that combined thorough planning with an agile mindset, HealthPlus Services successfully implemented the EHR system. The flexible aspects of the plan allowed for real-time adjustments that led to higher user satisfaction and smoother adoption. Ultimately, the quality of patient care improved significantly, and operational efficiencies were realized.

Key Takeaways

The experiences of XYZ Manufacturing Inc. and HealthPlus Services highlight the importance of balancing structure and flexibility in change management plans. Here are the key takeaways for achieving this balance:

  1. Start with a Clear Structure: Launch change initiatives with a well-defined structure, including impact analysis, milestones, roles, and responsibilities.
  2. Embrace Flexibility: Allow for adaptive changes based on real-time feedback and unexpected challenges. Incorporate flexible timelines and iterative adjustments.
  3. Foster Open Communication: Create feedback loops and channels for employees to voice concerns and suggestions, ensuring their input shapes the change process.
  4. Stay Agile in Execution: Adopt agile methodologies to facilitate iterative and incremental progress, enabling the organization to pivot when necessary.
  5. Empower Your Change Agents: Equip your Change Management Office or equivalent body with the authority and resources needed to adapt plans while maintaining overall alignment with objectives.

Successfully navigating change requires a harmonious blend of structure and flexibility. By learning from the experiences of others and applying these principles, organizations can enhance their ability to adapt, innovate, and thrive in an ever-changing business environment.

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: Pexels

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Empathy-Driven Design

Leave a reply

The Heart of Human-Centered Innovation

Empathy-Driven Design

GUEST POST from Chateau G Pato

In the rapidly evolving world of innovation, one principle remains steadfast: the importance of understanding and addressing human needs. Empathy-driven design, also known as human-centered design, sits at the heart of this principle, ensuring that the end-users are always the focus of the innovation process. By prioritizing empathy, companies can create products, services, and experiences that resonate deeply with users. Let’s explore the transformative power of empathy-driven design through two compelling case studies.

Case Study 1: IDEO and the Redesign of the Shopping Cart

Overview

IDEO, a global design company known for its pioneering approaches, was tasked with an interesting challenge: redesign the traditional shopping cart to enhance the shopping experience, improve safety, and boost efficiency.

Empathy in Action

IDEO’s approach began with gaining a deep understanding of the people who use, interact with, and are impacted by shopping carts – from shoppers to store employees. They conducted extensive observations, interviews, and followed the user journey in various shopping environments.

Innovative Outcomes

The empathy-driven design led to several key innovations:

  • Improved Safety: The redesigned cart featured a basket that could be elevated to reduce back strain and an enclosed child seat for enhanced safety.
  • Enhanced Maneuverability: Swiveling wheels and a smaller footprint allowed for easier navigation through the store.
  • User Convenience: Added features such as cup holders, specialized compartments for fragile items, and a streamlined shape to prevent bumping into shelves.

Impact

This user-centered redesign not only transformed the shopping experience but also highlighted the significant role empathy plays in creating solutions that truly meet users’ needs. By stepping into the shoes of their users, IDEO was able to identify problems and opportunities that weren’t immediately obvious and create a product that was well-received by both shoppers and store staff alike.

Case Study 2: Airbnb’s Journey to User-Centric Excellence

Overview

In its early days, Airbnb faced significant challenges in gaining traction and trust among users. The founders realized that to truly connect with their audience, they needed to deeply understand the issues potential customers were facing.

Empathy in Action

The Airbnb team embarked on a journey of empathy by immersing themselves in the user experience. The founders personally stayed in various listings, talked with hosts and guests, and gathered firsthand insights into the pain points and joys of using the platform.

Innovative Outcomes

This deep empathy-driven approach led to several critical innovations:

  • High-Quality Images: Realizing that poor-quality photos were a major drawback, Airbnb introduced professional photography service to enhance the visual appeal of the listings.
  • Trust and Safety Measures: They implemented robust review systems, secure payment methods, and a comprehensive verification process to build trust within the community.
  • User-Friendly Design: The platform’s interface was redesigned to be more intuitive and user-friendly, making it easier for hosts and guests to navigate.

Impact

Empathy-driven design transformed Airbnb from a struggling startup to a global giant in the hospitality industry. By putting themselves in their users’ shoes, the founders were able to identify and address critical issues, leading to a surge in user satisfaction and engagement. Airbnb’s success story underscores the power of empathy in driving meaningful, user-centered innovation.

Conclusion: The Power of Empathy

Empathy-driven design is more than a methodological approach; it’s a fundamental shift in how we think about innovation. By prioritizing the feelings, needs, and experiences of users, companies can uncover hidden insights and create solutions that truly resonate with people. The case studies of IDEO and Airbnb demonstrate that when empathy is placed at the heart of the design process, the results can be transformative, driving both user satisfaction and business success.

As we continue to navigate an increasingly complex world, it’s clear that empathy-driven design will remain a cornerstone of human-centered innovation. By embracing this approach, organizations can ensure that they not only meet but exceed the evolving needs of their users, fostering deeper connections and driving lasting impact.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pexels

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Change Leadership

Leave a reply

An Essential Skill for Today’s Leaders

Change Leadership - An Essential Skill for Today's Leaders

GUEST POST from Art Inteligencia

In today’s rapidly evolving landscape, leaders face a unique set of challenges and opportunities. To navigate this environment successfully, change leadership has emerged as an indispensable skill. Leaders who can adeptly guide their teams and organizations through change not only ensure survival but also drive innovation and long-term growth. In this article, we’ll explore what change leadership entails, why it’s essential, and how it’s been successfully implemented through two enlightening case studies.

What is Change Leadership?

Change leadership refers to the ability to influence and inspire teams to embrace change and drive transformation. Unlike traditional change management, which focuses on processes and tools, change leadership centers on people. It’s about engaging hearts and minds, fostering a culture of adaptability, and ensuring that everyone is aligned with the vision for change.

Why is Change Leadership Essential?

There are several reasons why change leadership is more critical now than ever:

  • Accelerated Technological Advancements: The digital age has introduced rapid technological changes, requiring leaders to be agile and forward-thinking.
  • Globalization: As businesses expand globally, leaders must manage cross-cultural teams and navigate various market dynamics.
  • Regulatory Changes: Frequent regulatory updates necessitate quick adaptation and compliance.
  • Workforce Dynamics: With the rise of remote work and the gig economy, traditional management structures are evolving.
  • Customer Expectations: Modern consumers demand constant innovation, pushing organizations to be more responsive to market shifts.

Case Study 1: IBM’s Transformation Under Lou Gerstner

Background

Starting in the early 1990s, IBM faced declining revenues and a rapidly changing technology landscape. The mainframe-centric company was struggling to compete in the burgeoning personal computer and network computing markets. Lou Gerstner was appointed CEO in 1993 with the monumental task of turning the ship around.

Change Leadership in Action

Vision Setting

Gerstner began by articulating a clear vision. He envisioned IBM transforming from a hardware-centric company to a solutions-based provider. This vision broke from IBM’s traditional focus and set a new course for the company.

Engaging Stakeholders

Gerstner took steps to engage all levels of the organization. He initiated regular town hall meetings, encouraging open communication and feedback. This inclusivity helped dismantle silos and fostered a collaborative culture.

Cultural Shift

Recognizing that the existing culture was a barrier to change, Gerstner introduced a new set of values emphasizing customer solutions, teamwork, and speed. He also revamped the performance evaluation system to align with the new cultural values.

Results

IBM’s transformation under Gerstner was a resounding success. By the late 1990s, the company had repositioned itself as a leader in the IT services sector, experiencing significant revenue growth and improved market share. The shift not only saved IBM from potential obsolescence but also set the stage for future innovations.

Case Study 2: Microsoft’s Satya Nadella and the Cultural Renaissance

Background

In 2014, Satya Nadella took over as CEO of Microsoft. At the time, Microsoft was criticized for its cutthroat culture and was lagging in key areas like mobile and cloud computing. Employee morale was low, and the company needed a transformative leader.

Change Leadership in Action

Empathy-Driven Leadership

Nadella emphasized empathy and collaboration from the outset. His leadership style was a significant departure from Microsoft’s historically aggressive culture. He introduced the concept of “growth mindset” to encourage employees to embrace challenges and learn continuously.

Vision and Strategy

Nadella articulated a clear vision: to transform Microsoft into a cloud-first, mobile-first company. He made bold moves, such as acquiring LinkedIn and GitHub, to align with this vision. These strategic acquisitions positioned Microsoft as an indispensable player in the tech ecosystem.

Inclusivity and Diversity

Nadella focused heavily on inclusivity, believing a diverse workforce would foster better innovation. He implemented measures to improve diversity at all levels, creating an inclusive atmosphere where every voice could be heard.

Results

Under Nadella’s leadership, Microsoft experienced a cultural renaissance that translated into financial success. The company saw its stock price quadruple, re-established itself as an industry leader, and was lauded for its inclusive culture.

Key Takeaways for Today’s Leaders

Change leadership is not just about steering your organization through disruption but about thriving in it. From IBM’s pivot under Lou Gerstner to the cultural shift at Microsoft led by Satya Nadella, the principles of effective change leadership remain consistent:

  • Clear Vision: A compelling vision can unite and guide an organization.
  • Engage Stakeholders: Open communication and stakeholder engagement are vital.
  • Cultural Alignment: A culture aligned with your vision can propel your organization forward.
  • Inclusivity: Diverse perspectives foster innovation and resilience.

In an era of constant flux, embracing change leadership is not just advisable—it’s imperative. As demonstrated by our case studies, those who master this skill can lead their organizations to unparalleled success.

Conclusion

Change leadership is an essential competency for navigating today’s ever-changing business landscape. By understanding its core principles and learning from successful leaders, today’s executives can set their organizations on a path to sustainable growth and innovation. Through vision, engagement, cultural shifts, and inclusivity, leaders can inspire their teams to not just accept change but to thrive in it.

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

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

The Future of Space Exploration

Leave a reply

Commercial Space Travel and Beyond

Commercial Space Travel and Beyond - The Future of Space Exploration

GUEST POST from Chateau G Pato

The realm of space exploration, once dominated exclusively by government bodies like NASA and Roscosmos, is witnessing a paradigm shift. Private companies and startups are breaking through the frontiers, making commercial space travel increasingly accessible. This transformative phase offers not just the thrill of adventure, but the promise of lasting benefits for humanity. Here, we’ll explore the visionary steps commercial enterprises are taking as they race towards the ultimate frontier, alongside examining key case studies that exemplify the strides made in space innovation.

The Dawn of Commercial Space Travel

Commercial space travel represents a seismic activity in the landscape of exploration. The unimaginable is becoming achievable as companies like SpaceX and Blue Origin demonstrate the viability and potential of private missions. These endeavors extend beyond mere tourism; they encompass satellite deployment, space station servicing, and even prospective Mars colonization.

Traditional spacefaring nations still operator as significant players, but private companies infuse new energy and financial resources into the sector. This symbiotic relationship vastly accelerates advancements that could otherwise take decades. The collaborative effort between government agencies and private enterprises presents a scenario where the sky is not the limit—space is.

Case Study 1: SpaceX

Redefining Space Accessibility

SpaceX, under Elon Musk’s visionary leadership, has transformed the dream of space travel into a near-commercial reality. The company’s Falcon and Starship reusable rockets are now legendary. By significantly reducing the cost of sending payloads to space, SpaceX has essentially opened the doors to nearly any organization willing to venture beyond our atmosphere.

One of their landmark achievements is the Crew Dragon mission, which successfully transported astronauts to the International Space Station (ISS) and brought them back safely. This first-ever crewed mission by a private company signals a new era where commercial outfits play an instrumental role in human spaceflight.

Moreover, SpaceX’s ambitious Starlink project aims to provide global high-speed internet coverage through a constellation of low-Earth orbit satellites, potentially connecting underserved regions and thereby sparking socioeconomic transformations.

Case Study 2: Blue Origin

Building the Infrastructure for Space Habitats

Founded by Amazon’s Jeff Bezos, Blue Origin serves a vision that extends beyond mere travel—to actual habitation and sustainable life in space. Their reusable suborbital rocket, New Shepard, successfully takes humans and research payloads on brief spaceflights, aiming to democratize access to space.

More impressively, Blue Origin is developing New Glenn, a heavy-lift orbital launch vehicle that could support missions ranging from lunar landings to deep-space exploration. The company’s push towards creating a robust space infrastructure also includes concepts for orbital habitats, such as the O’Neill cylinders, which could house human populations and industries in the vacuum of space.

By focusing on reusability and sustainability, Blue Origin is laying the groundwork for turning science fiction into science reality. Their commitment isn’t solely to space tourism but to establishing the foundational structure necessary for long-term human presence beyond Earth.

Beyond Earth: The Ultimate Frontier

As we look towards the next decade, the focus expands from visiting space to living and working there. Visions of lunar bases and Mars colonies are no longer fanciful imaginations but tangible targets. The fusion of government support and private ingenuity stands as a pivotal catalyst for achieving these milestones.

Moreover, the quest for resources in space, like mining asteroids for rare minerals, could redefine entire industries on Earth, fostering a new gold rush—this time, in the cosmos. Recently, nations have started drafting regulations and policies ensuring that space resources are managed sustainably and ethically.

Conclusion

The future of space exploration promises to be a confluence of unprecedented challenges and exhilarating opportunities. With commercial players stepping onto the field, the pace of innovation accelerates, pushing humanity closer to new horizons. Companies like SpaceX and Blue Origin exemplify the possibilities when vision and technology converge. As this new epoch unfolds, one truth becomes increasingly clear: the sky is not the limit; it’s just the beginning.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Exploring Cognitive Dissonance

Leave a reply

Leveraging Consumer Behavior for Innovative Solutions

Exploring Cognitive Dissonance: Leveraging Consumer Behavior for Innovative Solutions

GUEST POST from Art Inteligencia

Cognitive dissonance is a psychological phenomenon that occurs when individuals experience conflicting beliefs, attitudes, or behaviors. This discomfort can lead to consumers making irrational decisions, which creates a unique opportunity for businesses to leverage this cognitive dissonance to drive innovation and create value for their customers.

Case Study 1: Apple Inc.

Apple has been a pioneer in leveraging cognitive dissonance to drive consumer behavior and innovation. For example, when Apple first introduced the iPhone, many consumers were initially resistant to the idea of switching from their traditional flip phones to a smartphone. However, Apple strategically marketed the iPhone as a revolutionary device that would simplify their lives and enhance their productivity. This created a cognitive dissonance in consumers who were torn between their reluctance to change and their desire to embrace new technology.

To address this cognitive dissonance, Apple focused on creating a seamless user experience with the iPhone, making it intuitive and easy to use. They also incorporated innovative features such as the App Store and Siri, which further incentivized consumers to adopt the iPhone. By understanding and leveraging consumers’ conflicting beliefs and attitudes, Apple was able to successfully drive adoption of the iPhone and revolutionize the smartphone industry.

Case Study 2: Tesla Inc.

Tesla is another company that has successfully leveraged cognitive dissonance to drive consumer behavior and innovation. When Tesla first introduced electric vehicles to the market, many consumers were skeptical about the feasibility and practicality of electric cars. There was a cognitive dissonance between consumers’ desire for environmentally-friendly transportation and their concerns about range anxiety and charging infrastructure.

To address this cognitive dissonance, Tesla focused on designing electric vehicles that not only were environmentally-friendly but also offered impressive performance and range. They also invested heavily in building out their Supercharger network, which made it easier for consumers to charge their electric vehicles while on the go. By addressing consumers’ concerns and offering innovative solutions, Tesla was able to disrupt the automotive industry and pioneer the shift towards electric vehicles.

Conclusion

Cognitive dissonance offers a unique opportunity for businesses to drive innovation and create value for their customers. By understanding and leveraging consumers’ conflicting beliefs, attitudes, and behaviors, companies can develop products and services that address their needs and desires. As demonstrated by Apple and Tesla, embracing cognitive dissonance can lead to breakthrough innovations and competitive advantages in the marketplace. By incorporating these insights into their strategic planning and marketing efforts, businesses can stay ahead of the curve and drive growth in an increasingly complex and competitive environment.

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

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Re-Skilling and Upskilling People & Teams

6 Replies

Re-Skilling and Upskilling People & Teams

GUEST POST from Janet Sernack

The pandemic has increased the pace of change in a digitally accelerated world, and at the same time, it is forcing organizations, leaders, and teams to become more purposeful, human, and customer-centric. Where managing both the future and the present simultaneously requires people to unlearn what has worked in the past and relearn new mindsets and behaviors as to what might be possible, useful, and relevant in the future.

This is crucial to enabling people to perform at their best, and it requires investment in reskilling and upskilling people to be future-fit to meet the needs of previously unheard-of occupations, newly emerging flexible job options. All of which are being transformed by the pandemic, coupled with technologies created by accelerated digitization. Where organizations, leaders, and teams can increase speed, agility and improve simplicity and strategically generate new ways of tapping into the power of and harnessing and mobilizing people’s collective intelligence.

To better enable them to balance and resource organizational digital, agile, or cultural transformational initiatives with the needs of its people, users, customers, and communities, and execute them accordingly.

Collective Intelligence

Collective intelligence is group intelligence that emerges from the collaboration, efforts, and engagement of diverse groups, tribes, teams, and collectives. Which poses a great opportunity, which is also critical to recovery, for organizations to attract, retain, manage and leverage talent  through reskilling and upskilling people to be future-fit by:

  1. Enhancing flexible work options

The recent World Economic Forum Job Reset Summit reported that – “in 2020, the global workforce lost an equivalent of 255 million full-time jobs, an estimated $3.7 trillion in wages and 4.4% of global GDP, a staggering toll on lives and livelihoods.”

McKinsey & Co in a recent article state that – as many as 25 percent more workers may need to switch occupations than before the pandemic.

This means that in a hybrid work environment, without the constriction of location, and with the ability to leverage connection digitally, at little, or no cost, there is a greater talent pool to draw from. Including, according to a recent Harvard Business Review article “What your future employees want most” untapped pools of talent such as the “home force” which includes bringing people back into the workforce including people who put their careers on hold due to raising children, caring for the elderly and retired baby boomers.

It also means that some people will be more likely to prioritize lifestyle (family and personal interests) over proximity to work, and will pursue jobs in locations where they can focus on both – even if it means taking a pay cut. Workers will be more likely to move out of cities and other urban locations if they can work remotely for a majority of the time, creating new work hubs in rural areas.

  1. Measuring the value delivered and not the volume

Designing people and customer-centric work experiences, roles gives people the space to unlock their full potential, maximize their impact by delivering transformative results that contribute to the common good and to the future of humanity.

It also encourages cross-fertilization of creative ideas through teaming and networking, maximizing the power of collaboration and collaborative technologies to create and capture value, through inventing new business models, services, and products that users and customers appreciate and cherish.

  1. Prioritizing continuous learning, reskilling and upskilling

At the same time, customer expectations and preferences are also constantly changing, giving rise and opening doors to new roles and opportunities, that may have never previously existed.

Organizations also need to discover and explore new ways of competing and future-proofing against uncertainty and disruption. They also need to invent new ways of boosting productivity and improving efficiency, through adapting and flexing to flow with the new reality and to ultimately grow and thrive within it.

There are also opportunities to solve complex problems by increasing reciprocity and collaboration through cross-functional partnerships, collectives, tribes, and ecosystems, designed to capture and deliver value co-creatively.

Continuous learning

Reskilling and upskilling people to be future-fit by maximizing collective intelligence require disrupting complacency and stagnation and creating an environment of continuous learning and trust.

Where people are focused on delivering a great customer experience and have the permission and safety and are “allowed” to:

  • Value and leverage differences and diversity in ways that evoke, provoke, and create new ways of being through unlearning, and through relearning to adopt a beginner’s mind, develop a paradox lens, and elastic thinking strategies to pivot quickly into new roles and structures as situations demand.
  • Challenge the status quo, by withholding judgment and evaluation, through developing vital generative questioning, listening, and debating skills to deep dive into and unleash creative and inventive ideas.
  • Continuously learn, to remain both agile and adaptive, collaborative and innovative, to discover, evolve, and grow talent in ways that are both nimble and sustainable.
  • Create lines of sight between strategy, structures, systems, people, and customers, identifying and maximizing interdependencies, through intentional collaboration where everyone knows that their efforts contribute to, and make a difference to the delivery of organizational outcomes.
  • Provide rigor, discipline by driving accountability and by constantly measuring and sharing feedback and results to allow for engaging people in continuous learning, iterative process, and real-life pivots.

Leveraging collective genius

Only by prioritizing reskilling and upskilling people to be future-fit organizations will leverage people’s collective genius and enhance their agility to survive and thrive, flow, and flourish in a VUCA world.

Organizations that are future-focused will create meaningful and purposeful hybrid workplaces that increase peoples’ job satisfaction and support.  That provides flexible work options, continuous learning, and focus on generating value delivery will build people’s loyalty and retention and lower hiring costs over time.

An uncertain future

According to the World Economic Forum Job Reset Summit – “While vaccine rollout has begun and the growth outlook is predicted to improve, and even socio-economic recovery is far from certain”.

Yet, with so much uncertainty about the future, there is one thing that we can all control and is controllable, are our mindsets – how we think, feel, and choose to act in any situation, especially in our communication, problem-solving, and decision-making processes.

All of us have the freedom to choose, to develop our independent wills, and create new ways of being, thinking, feeling, and doing – to meet the needs of a wide range of previously unheard-of occupations that are emerging, to provide more flexible, meaningful and purposeful job options.

To leverage the current turning point, which is full of possibilities and innovative opportunities for enabling organizations, people, and customers to be more equitable, resilient, sustainable, and future-fit, in an ever-changing landscape, impacted by the technologies created by accelerated digitization.

This is the next blog a series of blogs, podcasts, and webinars on Developing a Human-Centric Future-Fitness organization

Find out more about our work at ImagineNation™

Find out about The Coach for Innovators Certified Program, a collaborative, intimate, and deep personalized innovation coaching and learning program, supported by a global group of peers over 8-weeks, starting October 19, 2021. It is a blended learning program that will give you a deep understanding of the language, principles, and applications of a human-centered approach to innovation, within your unique context. Find out more.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Building Trust in a Virtual Workplace

Leave a reply

Strategies for Remote Leaders

Building Trust in a Virtual Workplace: Strategies for Remote Leaders

GUEST POST from Chateau G Pato

In today’s rapidly changing work landscape, remote work has become the new norm. As more teams transition to virtual workplaces, leaders face the daunting task of building trust amongst team members who may never meet face-to-face. Trust is the foundation of effective collaboration, and remote leaders must adapt their strategies to foster a sense of trust and connection in the virtual realm. In this thought leadership article, we will explore two case studies that exemplify successful strategies for building trust in a virtual workplace.

Case Study 1: Company X – Establishing Open Communication Channels

Company X, a tech startup with a globally distributed team, faced the challenge of building trust within their remote workforce. The CEO recognized that clear and open communication was the key to success. To address this, the company implemented the following strategies:

1. Transparent Communication: The leadership team started sharing detailed updates about the company’s direction, challenges, and wins. They encouraged employees to ask questions and participate in discussions openly. This not only increased transparency but also created a sense of belonging and trust amongst team members.

2. Regular Video Conferences: To foster personal connections, Company X scheduled regular video conferences instead of relying solely on email or chat platforms. These virtual meetings allowed team members to see each other’s faces, making interactions more meaningful and building trust through nonverbal cues.

3. Individual Check-ins: To address the unique challenges faced by remote employees, each team member had regular one-on-one check-ins with their managers. These check-ins were not only focused on work-related matters but also served as an opportunity to discuss personal concerns. This personalized approach helped leaders understand their team members on a deeper level, leading to stronger trust bonds.

Case Study 2: Company Y – Encouraging Autonomy and Empowering Remote Teams

Company Y, a marketing agency with a global client base, had a fully remote workforce. The challenge for them was building trust when physical supervision was not possible. Their strategies focused on autonomy and empowerment:

1. Outcome-based Performance: Company Y transitioned from monitoring daily work hours to focusing on deliverables and outcomes. Instead of micromanaging, remote leaders set clear goals and expectations, allowing employees to take ownership of their work. This approach demonstrated trust in employees’ abilities and motivated them to perform at their best.

2. Empowering Decision-Making: Remote leaders at Company Y empowered their teams by involving them in decision-making processes. They sought inputs from diverse perspectives, encouraged collaboration, and took team members’ suggestions seriously. This inclusive approach not only built trust but also fostered a culture of ownership and innovation.

Conclusion

Building trust in a virtual workplace is essential for remote leaders to ensure productivity, collaboration, and employee satisfaction. The case studies of Company X and Company Y demonstrate that effective communication, transparency, personal connections, autonomy, and empowerment are critical strategies for remote leaders. By adopting these techniques, leaders can create an environment where employees feel valued, trusted, and motivated, ultimately resulting in a high-performing virtual team.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

We’re Disrupting People Instead of Industries Now

2 Replies

We're Disrupting People Instead of Industries Now

In 1997, when Clayton Christensen first published The Innovator’s Dilemma and introduced the term “disruptive innovation,” it was a clarion call. Business leaders were put on notice: It is no longer enough to simply get better at what you already do, you need to watch out for a change in the basis of competition that will open the door for a disruptive competitor.

Today, it’s become fashionable for business pundits to say that we live in a VUCA era, one that is volatile, uncertain, complex and ambiguous, but the evidence says otherwise. Increasingly researchers are finding that businesses are enjoying a period that is less disruptive, less competitive and less dynamic.

The truth is that we don’t really disrupt businesses anymore, we disrupt people and that’s truly becoming a problem. As businesses are increasingly protected from competition, they are becoming less innovative and less productive. Americans, meanwhile, are earning less and paying more. It’s time we stop doubling down on failed ideas and begin to right the ship.

The Productivity Paradox

In the 1920s two emerging technologies, internal combustion and electricity, finally began to hit their stride and kicked off a 50-year boom in productivity growth. During that time things changed dramatically. We shifted from a world where few Americans had indoor plumbing, an automobile or electrical appliances to one in which the average family had all of these things.

Technology enthusiasts like to compare the digital revolution with that earlier era, but that’s hardly the case. If anybody today was magically transported 50 years back to 1970, they would see much they would recognize. Yet if most modern people had to live in 1920, where even something as simple as cooking a meal required hours of backbreaking labor, they would struggle to survive.

The evidence is far more than anecdotal however. Productivity statistics clearly show that productivity growth started to slow in the early 1970s, just as computer investment began to rise. With the introduction of the Internet, there was a brief bump in productivity between 1996 and 2004, but then it disappeared again. Today, even with the introduction of social media, mobile Internet and artificial intelligence, we appear to be in a second productivity paradox.

Businesses can earn an economic profit in one of two ways. They can unlock new value through innovation or they can seek to reduce competition. In an era of diminished productivity, it shouldn’t be surprising that many firms have chosen the latter. What is truly startling is the ease and extent to which we have let them get away with it.

Rent Seeking And Regulatory Capture

Investment decisions are driven by profit expectations. If, for instance, a firm sees great potential in a new technology, they will invest in research and development. On the other hand, if they see greater potential influencing governments, they will invest in that. So it is worrying that lobbying expenditures have more than doubled since 1998.

The money goes towards two basic purposes. The first, called rent seeking, involves businesses increasing profits by the law to work in their favor, as when car dealerships in New Jersey sued against Tesla’s direct sales model. The second, regulatory capture, seeks to co-opt agencies that are supposed to govern industry.

It seems like they’re getting their money’s worth. Corporate tax rates in the US have steadily decreased and are now among the lowest in the developed world. Occupational licensing, often the result of lobbying by trade associations, has increased fivefold since the 1950s. Antitrust regulation has become virtually nonexistent, while competition has been reduced.

The result is that while corporations earn record profits, we pay more and get less. This is especially clear in some highly visible industries, such as airlines, cable and mobile carriers, but the effect is much more widespread than that. Keep in mind that, in many states, legislators earn less than $20,000 per year. It’s easy to see how a little investment can go a long way.

Decreasing Returns To Labor

With businesses facing less competition and a more favorable regulatory environment, which not only lowers costs but raises barriers to new market entrants, it shouldn’t be surprising that the stock market has hit record highs. Ordinarily that would be something to cheer, but evidence suggests that the gains are coming at the expense of the rest of us.

A report from MicKinsey Global Institute finds that labor’s share of income has been declining rapidly since 2000, especially in the United States. This is, of course, due to a number of factors, such as low productivity, automation, globalization. Decreased labor bargaining power due to increased market power of employers, however, has been shown to play an especially significant role.

At the same time that our wages have been reduced, the prices we pay have increased, especially in education and healthcare. A study from Pew shows that, for most Americans, real wages have hardly budged since 1964. Instead of becoming better off over time, many families are actually doing worse.

The effects of this long-term squeeze have become dire. Increasingly, Americans are dying deaths of despair from things like alcohol abuse, drug overdose, and suicide. Recent research has also shown that the situation has gotten worse during Covid.

We Are Entering A Dangerous Decade

Decades of disruption have left us considerably worse off. Income inequality is at record highs. Anxiety and depression, already at epidemic levels, has worsened during the Covid-19 pandemic. These trends are most acute in the US, but are essentially global in nature and have contributed to the rise in populist authoritarianism around the world.

Things are likely to get worse over the next decade as we undergo profound shifts in technology, resources, migration and demographics. To put that in perspective, a demographic shift alone was enough to make the 60s a tumultuous era. Clearly, our near future is fraught with danger.

Yet history is not destiny. We have the power to shape our path by making better choices. A good first step would be to finally abandon the cult of disruption that’s served us so poorly and begin to once again invest in stability and resilience, by creating better, safer technology, more competitive and stable markets and a happier, more productive workforce.

Perhaps most of all, we need to internalize the obvious principle that systems and ideologies should serve people, not the other way around. If we increase GDP and the stock market hits record highs, but the population is poorer, less healthy and less happy, then what have we won?

— Article courtesy of the Digital Tonto blog
— Image credit: Pexels

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.