Change Leaders Must Anticipate and Overcome Resistance

Change Leaders Must Anticipate and Overcome Resistance

GUEST POST from Greg Satell

When Barry Libenson arrived at Experian as Global CIO in 2015, he devoted his first few months to speaking with customers. Everywhere he went he heard the same thing: they wanted access to real-time data. On the surface, it was a straightforward business transformation, but Libenson knew that it was far more complicated than that

To switch from batch processed credit reports to real-time access would require a technology transformation—from an on-premise to a cloud architecture—and in order to develop cloud applications effectively, he would have to initiate a skills-based transformation—from waterfall to agile development.”

So what at first appeared to be a straightforward initiative was actually three separate transformations stacked on top of one another. To make things even more difficult, people had good reason to be hostile to each aspect. Still, by being strategic about overcoming resistance from the start, he achieved a full transformation in less than three years.

Understanding Cognitive Biases

One of the key concerns about Libenson’s program at Experian was that the company would lose control over its business model. The firm had prospered selling processed credit reports. Giving customers real-time access to data seemed to undercut a value proposition that had proven itself over decades, almost as if McDonald’s decided to stop selling hamburgers.

These were not casual criticisms. In fact, they reflected instinctual cognitive biases that are deeply rooted in our consciousness. The first, loss aversion, reflects our tendency to avoid losses rather than seek out new gains. The second, called the availability heuristic, reflects our preference for information that is easy to access and internalize, such as the decades of profits generated by credit reports rather than the vague promise of a new cloud-driven business model.

A similar dynamic is plays out between the Black Lives Matter movement and police unions. One could argue, with significant evidence, that the smart play for police unions would be to come to some accommodation with protesters’ concerns to avoid more draconian policies later on. Yet after meticulously building their power base for decades, they have shown little willingness to make concessions.

Libensen and his team were able to navigate these challenges with two key strategies. First, he started with internal API’s, rather than fully open applications, as a keystone change,. That helped bridge the gap between the initial and desired future state. Second, the program was opt-in at first. Those program managers who were excited about creating cloud-based products got significant support. Those who weren’t were left alone.

Navigating Asymmetrical Impacts

Another obstacle to overcome was the fact that some people were more affected than others. In the case of Experian’s skills-based transformation from waterfall to agile development, which was essential to making the business and technology transformations possible, the change hit more senior personnel harder than junior ones.

Many of the project managers at the company had been doing their jobs for years—even decades—and took great pride in their work. Now they were being told they needed to do their jobs very differently. For a junior employee with limited experience, that can be exciting. For those more invested in traditional methods, the transition can more difficult.

Here again, the opt-in strategy helped navigate some thorny issues. Because no one was being forced to switch to agile development, it was hard for anyone to muster much resistance. At the same time, Libenson established an “API Center of Excellence” to empower those who were enthusiastic about creating cloud-based products.

As the movement to the cloud gained steam and began to generate real business results, the ability to build cloud-based projects became a performance issue. Managers that lagged began to feel subtle pressure to get with the program and to achieve what their colleagues had been able to deliver.

Overcoming Switching Costs

Experian facilitates billions of transactions a month. At that scale, you can’t just turn the ship on a dime. Another factor that increased the risk is the very nature of the credit business itself, which makes cybersecurity a major concern. In fact, one of Experian’s direct competitors, Equifax, had one of the biggest data breaches of the decade.

Every change encounters switching costs and that can slow the pace of change. In one particularly glaring example, the main library at Princeton University took 120 years to switch to the Library of Congress classification system because of the time and expense involved. Clearly, that’s an extreme case, but every change effort needs to take inevitable frictions into account.

That’s why Libenson didn’t push for speed initially, but started small, allowing the cloud strategy to slowly prove itself over time. As win piled upon win, the process accelerated and the transformation became more ingrained in the organization. Within just a few years, those who opposed the move to the cloud were in the distinct minority.

As General Stanley McChrystal explained in Team of Teams, he experienced a similar dynamic revamping Special Operations in Iraq. By shifting his force’s focus from individual team goals to effective collaboration between teams, he may have slowed down individual units. However, as a collective, his forces increased their efficiency by a factor of seventeen, measured by the amount of raids they were able to execute.

In every transformation, there is an inherent efficiency paradox. In order to produce change for the long-term, you almost always lose a little bit of efficiency in the short-term. That’s why it’s important to start small and build momentum as you go.

Leveraging Resistance To Forge A New Vision

Any change, if it is important and potentially impactful, is going to encounter fierce resistance. As Saul Alinsky noted, every revolution inspires its own counter-revolution. That’s why three quarters of organizational transformations fail, because managers too often see it as a communication exercise, rather than a strategic effort to empower those who are already enthusiastic about change to influence everyone else.

In the case of Experian’s move to the cloud, the objections were not unfounded. Offering customers real-time access to data did have the potential to upend the traditional credit report business model. Switching to a new technology architecture does raise cybersecurity concerns. Many senior project managers really had served the company well for decades with traditional development methods.

As Global CIO, Libenson could have ignored these concerns. He could have held a “townhall” and launched a major communication effort to convince the skeptics. Yet he did neither of these things. Instead, he treated the resistance not as an obstacle, but as a design constraint. He identified people who were already enthusiastic about the shift and empowered them to make it work. Their success built momentum and paved the way for what became a major transformation .

In fact, Experian’s cloud architecture unlocked enormous value for the firm and its customers. The company’s API hub made good on Libenson’s initial promise of supporting real-time access to data and today processes over 100 million transactions a month. It has also enabled a completely new business, called Ascend, now one of the company’s most successful products.

The truth is that bringing about fundamental, transformational change takes more than clever slogans and happy talk. The status quo always has inertia on its side and never yields its power gracefully. You need to be clear-eyed and hard-nosed. You need to understand that for every significant change, there will be some who seek to undermine it in ways that are dishonest, underhanded and deceptive.

The difference between successful revolutionaries and mere dreamers is that those who succeed anticipate resistance and build a plan to overcome it.

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

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Humanizing Agility

Humanizing Agility

GUEST POST from Janet Sernack

Like many others, I invested time in isolation during the pandemic to engage in various online learning programs. As a highly credentialed coach to many global Agile and SCRUM leaders in major international and local organizations, I enrolled in an Agile coach certification program and enthusiastically attended all daily sessions. It was a disastrous learning experience, verifying my perception of the Agile community’s focus on a prescriptive rules-driven process to agility. The Agile Manifesto’s  highest priority is satisfying customers through the early and continuous delivery of valuable software; only two of the 12 principles mention people – “Business people and developers must work together daily throughout the project” and “the best architectures, requirements, and design emerge from self-organizing teams.” So, with this in mind, what might be some of the benefits of integrating a technological and process-driven disciplined approach towards humanizing agility?

I am a conceptual and analytical thinker, an entrepreneur, and an innovator who is acknowledged as a global thought leader on the people side of innovation. I also teach, mentor, and coach people to be imaginative, inquisitive, and curious, always asking many open questions. I empower, enable, and equip them to become change-agile, cognitively, and emotionally agile and develop their innovation agility. The presenters responded to my method of inquiry by assuming that I knew nothing about Agile despite knowing nothing about my background.

As a result, they failed to certify me without communicating or consulting with me directly, despite my meeting all of the course evaluation criteria and having more than 10,000 hours of facilitation and more than 1,000 hours of coaching experience on the people side of change. I also have a comprehensive background in humanizing total quality management, continuous improvement, and start-up methodologies in major organizations.

I contacted the training company and challenged their decision, only not to be “heard” and be paid lip service when confronted by a rigid, linear, conventional, disconnected approach to agility and its true role and capability in catalysing change, innovation and teaming.

This is especially true considering the senior SCRUM and Agile leaders I was coaching at the time experienced very few problems with Agile’s disciplined process and technological side. They specifically requested coaching support to develop strategies to resolve their monumental challenges and complex issues involving “getting people to work together daily” and operating as “self-organizing teams.” How do they go about humanizing agility?

Making sense of agility

Despite my disappointment, I bravely continued researching how to make sense of agility and link and integrate it with the people side of change, innovation, and teams. I intended to enable leaders to execute agile transformation initiatives successfully by combining a human-centered approach to agile software development through humanizing agility.  

Agility refers to a leader, team, or organization’s ability to make timely, effective, and sustained changes that maintain superior performance. According to Pamela Myer’s book “The Agility Shift”, – an agility shift is the intentional development of the competence, capacity and confidence to learn, adapt and innovate in changing contexts for sustainable success. We have incorporated this approach into our innovation learning and coaching curriculum at ImagineNation™ and iterated and pivoted it over the past 12 years in empowering, enabling and equipping people to become “agility shifters” by humanizing agility.

Humanizing agility differently

Agility can be humanized and expanded to include change, cognitive, innovation, and organizational agility, all powerfully fueled by people’s emotional energy. This is fundamental to achieving success through non-growth or growth strategies and delivering equitable and sustainable outcomes that will make the world a better place for all humanity.  

It involves identifying pivots, unlearning, learning, and relearning, embracing new approaches, frameworks, and tools, and developing new 21st-century mindsets, behaviors, and skills.

Humanizing agility involves empowering, enabling, and equipping people to be, think and act differently autonomously and competently, especially in the conflicted, chaotic, unstable post-COVID world of emerging unknowns.

Like innovation, agility is contextual.

Humanizing agility supports people to adapt, grow and thrive, become nimble by enabling:

  • Teams to deliver product releases as shorter sprints to collect customer feedback to iterate and pivot product development.
  • Leaders, teams, and organizations respond quickly and adapt to market changes, internally and externally.
  • People must think and feel and be able to quickly make intentional shifts to be effective, creative, inventive, and innovative in changing contexts.

That empowers, enables and equips people with the mindsets, behaviors, and skills to adapt, grow, and thrive by developing their confidence, capacity, and competence to catalyze and mobilize their power to move quickly and easily, think creatively and critically to make faster decisions and solve complex problems with less effort.  

Humanizing Agility – The Five Elements

1. Emotional energy

Emotional energy is the catalyst that fuels creativity, invention, and innovation.

Understanding and harnessing this energy inspires and motivates individuals to explore and embrace creative thinking strategies in partnership with AI.

Emotional energy catalyses people’s intrinsic motivation, conviction, hope, positivity, and optimism to approach their world purposefully, meaningfully, and differently.

When people are true to their calling, they make extra efforts and are healthier, which positively impacts their well-being and improves their resilience.

2. Change agility

Change agility is the ability to anticipate, respond, be receptive, and adapt to constant and accelerating change in an uncertain, unstable, conflicted world.

It involves developing a new perspective of change as a continuous, iterative, and learning process that has to be embedded in every action and interaction, not a separate standalone process.

Requiring the development of new mental models, states, traits, mindsets, behaviors, and skills to drive business and workforce outcomes that are critical for an organization to survive and thrive through any change.

Change becomes an ongoing opportunity, not a threat or liability, and humanizing agility in the context of change agility is a core 21st-century competency for leaders, teams and coaches.

3.Cognitive agility

Cognitive agility is the extent to which people can adapt and shift their perspectives and thought processes when doing so leads to more positive outcomes. 

Cognitive agility refers to how flexible and adaptive people can be with their thoughts in the face of change, uncertain circumstances, and random and unexpected events and situations. Being cognitively agile helps people break down their neuro-rigidity and eliminate any core fixed mindsets; it supports their neuro-plasticity and develops a growth mindset and ability to perceive the world through multiple lenses and differing perspectives.

Humanizing agility in the context of cognitive agility enables people to make sense of and understand the range of challenges, problems, and paradoxes at the deeper systemic and surface levels, preparing them for smart risk-taking, effective decision-making, and intelligent problem-solving. 

4.Innovation agility

Innovation agility is the extent to which people develop the courage, compassion and creativity to safely deep-dive into and dance with cognitive dissonance—to passionately, purposefully, and apply creative tension and develop neuro-elasticity, to play in the space where possibility lives—between the present state and the desired creative, inventive, and innovative outcome.

To empower, engage, and enable people to use their human ingenuity and harness their collective intelligence to be innovative in the age of AI by adapting and growing in ways that add value to the quality of people’s lives, which is appreciated and cherished.

5.Organizational and leadership agility

Organizational agility involves developing an ability to renew itself, adapt, innovate, change quickly, and succeed in a rapidly changing, uncertain and unstable operating environment. It requires a paradoxical balance of two things: a dynamic capability, the ability to move fast—speed, nimbleness, responsiveness and stability, and a stable foundation—a platform of things that don’t change to provide a rigorous and disciplined pillar.

Organizations and leaders prioritizing humanizing agility also prioritize differing and creative ways of being, thinking and acting. They maintain their strength by focusing on their core competencies while regularly stretching themselves for maximum flexibility, adaptiveness and resilience.

Finally…. Imagine humanizing agility

Imagine what you could do and the difference we could make to people, customers, organizations, communities and the world by humanizing agility in ways that embrace and embody the five elements of agility to harness the human ingenuity and people’s collective intelligence guide vertical, horizontal and transformational changes the world and humanity need right now.

Please find out more about our work at ImagineNation™.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack. It is a collaborative, intimate, and profoundly personalized innovation coaching and learning program supported by a global group of peers over 9-weeks. It can be customized as a bespoke corporate learning program.

Image Credit: Pexels

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Sometimes to Innovate You Must Do the Following

Sometimes to Innovate You Must Do the Following

GUEST POST from Mike Shipulski

What it takes to do new work:

Confidence to get it wrong and confidence to do it early and often.

Purposeful misuse of worst practices in a way that makes them the right practices.

Tolerance for not knowing what to do next and tolerance for those uncomfortable with that.

Certainty that they’ll ask for a hard completion date and certainty you won’t hit it.

Knowledge that the context is different and knowledge that everyone still wants to behave like it’s not.

Disdain for best practices.

Discomfort with success because it creates discomfort when it’s time for new work.

Certainty you’ll miss the mark and certainty you’ll laugh about it next week.

Trust in others’ bias to do what worked last time and trust that it’s a recipe for disaster.

Belief that successful business models have half-lives and belief that no one else does.

Trust that others will think nothing will come of the work and trust that they’re likely right.

Image credit: Unsplash

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Customer Service Makes You Money

Customer Service Makes You Money

GUEST POST from Shep Hyken

Necessity is the mother of invention. In 2003, Marton Anka, the founder of LogMeIn, now GoTo, spent three hours a day in Budapest crossing a bridge between Buda and Pest, the two halves of Hungary’s capital. He hated the “downtime,” so he invented remote access to a server so he could log in from anywhere—hence, the name of the company, LogMeIn.

Over time, the company expanded its offerings, had a few mergers and acquisitions and ultimately became GoTo, a company that makes IT management, support and business communications easy. Many of you reading this article may be familiar with GoTo Webinar and GoTo Meeting. These communication products (and others) have developed into a company focused on customer communication tools, phone systems, contact center platforms and engagement tools such as web chat, SMS communications, social media and more.

That’s the backdrop of my Amazing Business Radio interview with Joseph Walsh, vice president of product marketing at GoTo. We focused on several important concepts for CX leaders to consider as customer service continues to evolve and become one of the most powerful growth engines that fosters repeat business and customer loyalty. Below are the main points, followed by my comments:

  • The entire company must work in tandem with the customer support department. The old term silo came to mind. Many companies still have departments that operate almost autonomously, in silos, without regard to the other departments. Imagine the power a customer support agent working with a customer would have if they could easily reach out to someone in product development, accounting or sales in real time to get answers to their customer’s questions. Walsh says, “You need fast access to subject matter experts in other parts of the company.” This eliminates having to call the customer back and cuts down on the time it takes to answer customers’ questions and resolve their issues.

There are four stages of contact centers. Walsh talked about the four stages/lifecycle of a typical contact center. For an organization to understand where it is today, it must see where it fits into the different stages of contact centers, which are:

    1. Initiate Conversations: This is the traditional contact center. It’s where most companies start to build and expand their customer support department. They prepare to field multiple calls, answer emails, etc., often using basic/standard phone systems and computers to get started. People are trained with scripts, and while a good start, it’s still basic at best.
    2. Collaboration: This goes back to Walsh’s first point about collaborating with experts and departments throughout the company. On the customer’s first (and hopefully only) call, the agent can reach out to the appropriate people to get the right answers and convey that information to the customer for a much better experience.
    3. Digital Transformation: Walsh used the word omnichannel to describe how different communication channels work together seamlessly. A customer may start with a social media post to ask for help. At some point, they may be texting. That’s followed up with a phone conversation. But what makes this special is that it is a progressive conversation using these different communication platforms versus multiple interactions in which the customer must start over and repeat the story or problem at every interaction. Walsh says, “At this stage, the people and companies are beginning to master the craft of customer experience.”
    4. Automate and accelerate: This is where the modern contact center has evolved. Most of the first three stages of the lifecycle merge with modern technology and allow customers to employ self-service, work out problems and answer questions on their own. Automated processes and AI create a better experience by reducing and/or eliminating mundane, repetitive tasks. Customers and employees are happy.

    Customer service becomes a growth opportunity. It surprises me that some business leaders still view customer service as a cost center. The new way of looking at CX is that it is a revenue generator that retains customers and grows business. Walsh said, “The more evolved, digitally powered contact center is a growth center for achieving higher customer service scores that drive repeat customers and give the customer such a happy experience that they’re not concerned about price.” This powerful statement can be backed up with data proving customer service doesn’t cost. It pays!

    In a competitive marketplace, companies must prioritize exceptional customer experiences to thrive. By embracing collaboration, digital transformation and automation, companies and brands can turn customer service from a cost center into a growth engine. As Walsh emphasized, a digitally evolved contact center does more than simply improve service. It also drives loyalty, revenue and growth.

    Image Credits: Pexels

    This article originally appeared on Forbes.com

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How Leaders Make Employees Feel Respected

How Leaders Make Employees Feel Respected

GUEST POST from David Burkus

Leadership is about relationships. And the cornerstone of just about every relationship is respect.

When employees feel respected, they are more engaged, motivated, and productive. But many managers struggle to convey their respect to team members. Consequently, colleagues often experience a sense of being undervalued, disconnected, or even inferior. It is difficult to envision individuals who harbor such sentiments being able to their best work ever.

In this article, we will outline how to make employees feel respected through five actions leaders can take to build a respectful work environment.

Check-In Often

The first action leaders can take to make employees feel respected is to check-in often. By staying in contact with your team members on a regular basis, you show that you value their work and progress. That’s why regularly checking in with team members through one-on-one meetings is essential for making them feel respected. During these check-ins, ask about their work progress and if they need any resources or support. But beyond just work-related checking in, this is a time to check in with them on a deeper level as well. Show genuine interest in their personal lives and let them choose how much they want to share. They may not answer right away, as it takes time to grow comfortable with sharing personal information at work. But inquiring about it still demonstrates that you care about them as individuals and not just as employees.

By maintaining open lines of communication and regularly checking in, you create a supportive and respectful environment where employees feel heard and valued.

Ask for Input

The second action leaders can take to make employees feel respected is to ask for input. Employees involved in the decision-making process feel like their perspective and knowledge is respected. You don’t need to agree to follow every decision they make, and you don’t even need to let them make the decision. But you should absolutely seek out their input before you decide. By asking for their input, you show respect for their expertise and that you value their opinions. And you recognize that others may have different perspectives and access to information that you may not have. Even if their input is not ultimately followed, it is crucial to explain the reasoning behind the decision. In fact, asking for input helps you better explain to employees why a decision was made that they may disagree with, while still helping employees understand that their input was considered and respected.

By actively seeking input from your team members, you foster a culture of collaboration, trust, and respect.

Demonstrate Trust

The third action leaders can take to make employees feel respected is to demonstrate trust. Trust is a fundamental aspect of creating a respectful work environment. And the research on how trust develops suggests that trust isn’t given or earned, it’s built over time through a reciprocal process. When people feel trusted, they’re more likely to respond with trustworthy behavior. And in a work-context, this means leaders ought to go first by demonstrating they trust their employees. This often takes the form of giving employees more autonomy. Set clear standards and expectations but allow them to find the best way to meet them. By giving autonomy, you show that you trust your employees’ abilities and judgment.

However, it is important to balance autonomy with accountability. While giving employees the freedom to work in their own way, ensure that they are still accountable to the team and the organization’s goals. This balance between trust and accountability creates a respectful and empowering work environment.

Referee Conflicts

The fourth action leaders can take to make employees feel respected is to referee conflicts. Conflicts within a team can be detrimental to a respectful work environment, but they can also be hugely beneficial. It just depends on the type of conflict and how it is handled. Personal conflicts need to be resolved and eliminated quickly. But task-focused conflicts can benefit the team by making ideas stronger and making final decisions better. As a leader, this means referring task-focused conflicts to ensure they stay productive. Establish ground rules for conflicts, such as starting with positive feedback before addressing disagreements. This helps create a safe space for open and productive discussions. Additionally, teach your team members how to have productive conflicts that lead to better ideas and solutions.

By encouraging task-focused conflict and working to find productive resolutions, you foster a culture of respect and continuous improvement.

Give Fair Feedback

The final action leaders can take to make employees feel respected is to give fair feedback. Providing direct and fair feedback is essential for helping employees improve and grow. When giving feedback, focus on both the positive aspects and areas for improvement. By acknowledging their strengths and offering constructive criticism, you show that you value their efforts and are invested in their professional development. Where many leaders go wrong is in spending too much time on constructive criticism and not enough time on positive elements of one’s performance. That’s not fair. Fair feedback ensures that the conversation is proportionate to the overall performance of the employee. If their work is 90 percent positive and 10 percent needing improvement, then the conversation should be 90 percent positive. This not only helps the constructive criticism be better received, but it also helps the employees know their contribution is valued.

By giving fair feedback, employees not only grow faster but they grow in their feeling of being respected.

Creating a respectful work environment requires consistent effort and commitment from leaders. By regularly checking in with team members, involving them in decision-making processes, demonstrating trust, refereeing conflicts, and giving fair feedback, you can make employees feel respected and valued. Remember, a respectful work environment leads to higher employee satisfaction, engagement, and productivity—in other words, employees who feel respected are employees able to do their best work ever.

Image credit: Pexels

Originally published on DavidBurkus.com on August 14, 2023

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False Choice – Founder versus Manager

False Choice - Founder versus Manager

GUEST POST from Robyn Bolton

Paul Graham, cofounder of Y Combinator, was so inspired by a speech by Airbnb cofounder and CEO that he wrote an essay about well-intentioned advice that, to scale a business, founders must shift modes and become managers.

It went viral. 

In the essay, he argued that:

In effect there are two different ways to run a company: founder mode and manager mode. Till now most people even in Silicon Valley have implicitly assumed that scaling a startup meant switching to manager mode. But we can infer the existence of another mode from the dismay of founders who’ve tried it, and the success of their attempts to escape from it.

With curiosity and an open mind, I read on.

I finished with a deep sigh and an eye roll. 

This is why.

Manager Mode: The realm of liars and professional fakers

On the off chance that you thought Graham’s essay would be a balanced and reflective examination of management styles in different corporate contexts, his description of Manager Mode should relieve you of that thought:

The way managers are taught to run companies seems to be like modular design in the sense that you treat subtrees of the org chart as black boxes. You tell your direct reports what to do, and it’s up to them to figure out how. But you don’t get involved in the details of what they do. That would be micromanaging them, which is bad.

Hire good people and give them room to do their jobs. Sounds great when it’s described that way, doesn’t it? Except in practice, judging from the report of founder after founder, what this often turns out to mean is: hire professional fakers and let them drive the company into the ground.

Later, he writes about how founders are gaslit into adopting Manager Mode from every angle, including by “VCs who haven’t been founders themselves don’t know how founders should run companies, and C-level execs, as a class, include some of the most skillful liars in the world.”

Founder Mode: A meritocracy of lifelong learners

For Graham, Founder Mode boils down to two things:

  1. Sweating the details
  2. Engaging with employees throughout the organization beyond just direct reports.  He cites Steve Jobs’ practice of holding “an annual retreat for what he considered the 100 most important people at Apple, and these were not the 100 people highest on the org chart.”

To his credit, Graham acknowledges that getting involved in the details is micromanaging, “which is bad,” and that delegation is required because “founders can’t keep running a 2000 person company the way they ran it when it had 20.” A week later, he acknowledged that female founders “don’t have permission to run their companies in Founder Mode the same way men can.”

Yet he persists in believing that Founder, not Manager, Mode is critical to success,

“Look at what founders have achieved already, and yet they’ve achieved this against a headwind of bad advice. Imagine what they’ll do once we can tell them how to run their companies like Steve Jobs instead of John Sculley.”

Leader Mode: Manager Mode + Founder Mode

The essay is interesting, but I have real issues with two of his key points:

  • Professional managers are disconnected from the people and businesses they manage, and as a result, their practices and behaviors are inconsistent with startup success.
  • Founders should ignore conventional wisdom and micromanage to their heart’s content.

Most “professional managers” I’ve met are deeply connected to the people they manage, committed to the businesses they operate, and act with integrity and authenticity. They are a far cry from the “professional fakers” and “skillful liars” Graham describes.

Most founders I’ve met should not be allowed near the details once they have a team in place. Their meddling, need for control, and soul-crushing FOMO (Fear of Missing Out) lead to chaos, burnout, and failure.

The truth is, it’s contextual.  The leaders I know switch between Founder and Manager mode based on the context.  They work with the passion of founders, trust with the confidence of managers, and are smart and humble enough to accept feedback when they go too far in one direction or the other.

Being both manager and founder isn’t just the essence of being a leader. It’s the essence of being a successful corporate innovator.  You are a founder,  investing in, advocating for, and sweating the details of ambiguous and risky work.  And you are a manager navigating the economic, operational, and political minefields that govern the core business and fund your paycheck and your team.

Image credit: Pexels

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Innovation is Combination

Silicon Valley’s Innovator’s Dilemma – The Atom, the Bit and the Gene

Innovation is Combination

GUEST POST from Greg Satell

Over the past several decades, innovation has become largely synonymous with digital technology. When the topic of innovation comes up, somebody points to a company like Apple, Google or Meta rather than, say, a car company, a hotel or a restaurant. Management gurus wax poetically about the “Silicon Valley way.”

Of course, that doesn’t mean that other industries haven’t been innovative. In fact, there are no shortage of excellent examples of innovation in cars, hotels, restaurants and many other things. Still, the fact remains that for most of recent memory digital technology has moved further and faster than anything else.

This has been largely due to Moore’s Law, our ability to consistently double the number of transistors we’re able to cram onto a silicon wafer. Now, however, Moore’s Law is ending and we’re entering a new era of innovation. Our future will not be written in ones and zeros, but will be determined by our ability to use information to shape the physical world.

The Atom

The concept of the atom has been around at least since the time of the ancient Greek philosopher Democritus. Yet it didn’t take on any real significance until the early 20th century. In fact, the paper Albert Einstein used for his dissertation helped to establish the existence of atoms through a statistical analysis of Brownian motion.

Yet it was the other papers from Einstein’s miracle year of 1905 that transformed the atom from an abstract concept to a transformative force, maybe even the most transformative force in the 20th century. His theory of mass-energy equivalence would usher in the atomic age, while his work on black-body radiation would give rise to quantum mechanics and ideas so radical that even he would refuse to accept them.

Ironically, despite Einstein’s reluctance, quantum theory would lead to the development of the transistor and the rise of computers. These, in turn, would usher in the digital economy, which provided an alternative to the physical economy of goods and services based on things made from atoms and molecules.

Still, the vast majority of what we buy is made up of what we live in, ride in, eat and wear. In fact, information and communication technologies only make up about 6% of GDP in advanced countries, which is what makes the recent revolution in materials science is so exciting. We’re beginning to exponentially improve the efficiency of how we design the materials that make up everything from solar panels to building materials.

The Bit

While the concept of the atom evolved slowly over millennia, the bit is one of the rare instances in which an idea seems to have arisen in the mind of a single person with little or no real precursor. Introduced by Claude Shannon in a paper in 1948—incidentally, the same year the transistor was invented—the bit has shaped how we see and interact with the world ever since.

The basic idea was that information isn’t a function of content, but the absence of ambiguity, which can be broken down to a single unit – a choice between two alternatives. Much like how a coin toss which lacks information while in the air, but takes on a level of certainty when it lands, information arises when ambiguity disappears.

He called this unit, a “binary digit” or a “bit” and much like the pound, quart, meter or liter, it has become such a basic unit of measurement that it’s hard to imagine our modern world without it. Shannon’s work would soon combine with Alan Turing’s concept of a universal computer to create the digital computer.

Now the digital revolution is ending and we will soon be entering a heterogeneous computing environment that will include things like quantum, neuromorphic and biological computing. Still, Claude Shannon’s simple idea will remain central to how we understand how information interacts with the world it describes.

The Gene

The concept of the gene was first discovered by an obscure Austrian monk named Gregor Mendel, but in one of those strange peculiarities of history, his work went almost totally unnoticed until the turn of the century. Even then, no one really knew what a gene was or how they functioned. The term was, for the most part, just an abstract concept.

That changed abruptly when James Watson and Francis Crick published their article in the scientific journal Nature. In a single stroke, the pair were able to show that genes were, in fact, made up of a molecule called DNA and that they operated through a surprisingly simple code made up of A,T,C and G.

Things really began to kick into high gear when the Human Genome Project was completed in 2003. Since then the cost to sequence a genome has been falling faster than the rate of Moore’s Law, which has unleashed a flurry of innovation. Jennifer Doudna’s discovery of CRISPR in 2012 revolutionized our ability to edit genes. More recently, mRNA technology has helped develop COVID-19 vaccines in record time.

Today, we have entered a new era of synthetic biology in which we can manipulate the genetic code of A,T,C and G almost as easily as we can the bits in the machines that Turing imagined all those years ago. Researchers are also exploring how we can use genes to create advanced materials and maybe even create better computers.

Innovation Is Combination

The similarity of the atom, the bit and the gene as elemental concepts is hard to miss and they’ve allowed us to understand our universe in a visceral, substantial way. Still, they arose in vastly different domains and have been largely applied to separate and distinct fields. In the future, however, we can expect vastly greater convergence between the three.

We’ve already seen glimpses of this. For example, as a graduate student Charlie Bennett was a teaching assistant for James Watson. Yet in between his sessions instructing undergraduates in Watson’s work on genes, he took an elective course on the theory of computing in which he learned about the work of Shannon and Turing. That led him to go work for IBM and become a pioneer in quantum computing.

In much the same way, scientists are applying powerful computers to develop new materials and design genetic sequences. Some of these new materials will be used to create more powerful computers. In the future, we can expect the concepts of the atom, the bit and the gene to combine and recombine in exciting ways that we can only begin to imagine today.

The truth is that innovation is combination and has, in truth, always been. The past few decades, in which one technology so thoroughly dominated that it was able to function largely in isolation to other fields, was an anomaly. What we are beginning to see now is, in large part, a reversion to the mean, where the most exciting work will be interdisciplinary.

This is Silicon Valley’s innovator’s dilemma. Nerdy young geeks will no longer be able to prosper coding blithely away in blissful isolation. It is no longer sufficient to work in bits alone. Increasingly we need to combine those bits with atoms and genes to create significant value. If you want to get a glimpse of the future, that’s where to look.

— Article courtesy of the Digital Tonto blog
— Image credits: Pixabay

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The Runaway Innovation Train

The Runaway Innovation Train

GUEST POST from Pete Foley

In this blog, I return and expand on a paradox that has concerned me for some time.    Are we getting too good at innovation, and is it in danger of getting out of control?   That may seem like a strange question for an innovator to ask.  But innovation has always been a two edged sword.  It brings huge benefits, but also commensurate risks. 

Ostensibly, change is good. Because of technology, today we mostly live more comfortable lives, and enjoy superior health, longevity, and mostly increased leisure and abundance compared to our ancestors.

Exponential Innovation Growth:  The pace of innovation is accelerating. It may not exactly mirror Moore’s Law, and of course, innovation is much harder to quantify than transistors. But the general trend in innovation and change approximates exponential growth. The human stone-age lasted about 300,000 years before ending in about 3,000 BC with the advent of metalworking.  The culture of the Egyptian Pharos lasted 30 centuries.  It was certainly not without innovations, but by modern standards, things changed very slowly. My mum recently turned 98 years young, and the pace of change she has seen in her lifetime is staggering by comparison to the past.  Literally from horse and carts delivering milk when she was a child in poor SE London, to todays world of self driving cars and exploring our solar system and beyond.  And with AI, quantum computing, fusion, gene manipulation, manned interplanetary spaceflight, and even advanced behavior manipulation all jockeying for position in the current innovation race, it seems highly likely that those living today will see even more dramatic change than my mum experienced.  

The Dark Side of Innovation: While accelerated innovation is probably beneficial overall, it is not without its costs. For starters, while humans are natural innovators, we are also paradoxically change averse.  Our brains are configured to manage more of our daily lives around habits and familiar behaviors than new experiences.  It simply takes more mental effort to manage new stuff than familiar stuff.  As a result we like some change, but not too much, or we become stressed.  At least some of the burgeoning mental health crisis we face today is probably attributable the difficulty we have adapting to so much rapid change and new technology on multiple fronts.

Nefarious Innovation:  And of course, new technology can be used for nefarious as well as noble purpose. We can now kill our fellow humans far more efficiently, and remotely than our ancestors dreamed of.  The internet gives us unprecedented access to both information and connectivity, but is also a source of misinformation and manipulation.  

The Abundance Dichotomy:  Innovation increases abundance, but it’s arguable if that actually makes us happier.  It gives us more, but paradoxically brings greater inequalities in distribution of the ‘wealth’ it creates. Behavior science has shown us consistently that humans make far more relative than absolute judgments.  Being better off than our ancestors actually doesn’t do much for us.  Instead we are far more interested in being better off than our peers, neighbors or the people we compare ourselves to on Instagram. And therein lies yet another challenge. Social media means we now compare ourselves to far more people than past generations, meaning that the standards we judge ourselves against are higher than ever before.     

Side effects and Unintended Consequences: Side effects and unintended consequences are perhaps the most difficult challenge we face with innovation. As the pace of innovation accelerates, so does the build up of side effects, and problematically, these often lag our initial innovations. All too often, we only become aware of them when they have already become a significant problem. Climate change is of course a poster child for this, as a huge unanticipated consequence of the industrial revolution. The same applies to pollution.  But as innovation accelerates, the unintended consequences it brings are also stacking up.  The first generations of ‘digital natives’ are facing unprecedented mental health challenges.  Diseases are becoming resistant to antibiotics, while population density is leading increased rate of new disease emergence. Agricultural efficiency has created monocultures that are inherently more fragile than the more diverse supply chain of the past.  Longevity is putting enormous pressure on healthcare.

The More we Innovate, the less we understand:  And last, but not least, as innovation accelerates, we understand less about what we are creating. Technology becomes unfathomably complex, and requires increasing specialization, which means few if any really understand the holistic picture.  Today we are largely going full speed ahead with AI, quantum computing, genetic engineering, and more subtle, but equally perilous experiments in behavioral and social manipulation.  But we are doing so with increasingly less pervasive understanding of direct, let alone unintended consequences of these complex changes!   

The Runaway Innovation Train:  So should we back off and slow down?  Is it time to pump the brakes? It’s an odd question for an innovator, but it’s likely a moot point anyway. The reality is that we probably cannot slow down, even if we want to.  Innovation is largely a self-propagating chain reaction. All innovators stand on the shoulders of giants. Every generation builds on past discoveries, and often this growing knowledge base inevitably leads to multiple further innovations.  The connectivity and information access of internet alone is driving today’s unprecedented innovation, and AI and quantum computing will only accelerate this further.  History is compelling on this point. Stone-age innovation was slow not because our ancestors lacked intelligence.  To the best of our knowledge, they were neurologically the same as us.  But they lacked the cumulative knowledge, and the network to access it that we now enjoy.   Even the smartest of us cannot go from inventing flint-knapping to quantum mechanics in a single generation. But, back to ‘standing on the shoulder of giants’, we can build on cumulative knowledge assembled by those who went before us to continuously improve.  And as that cumulative knowledge grows, more and more tools and resources become available, multiple insights emerge, and we create what amounts to a chain reaction of innovations.  But the trouble with chain reactions is that they can be very hard to control.    

Simultaneous Innovation: Perhaps the most compelling support for this inevitability of innovation lies in the pervasiveness of simultaneous innovation.   How does human culture exist for 50,000 years or more and then ‘suddenly’ two people, Darwin and Wallace come up with the theory of evolution independently and simultaneously?  The same question for calculus (Newton and Leibniz), or the precarious proliferation of nuclear weapons and other assorted weapons of mass destruction.  It’s not coincidence, but simply reflects that once all of the pieces of a puzzle are in place, somebody, and more likely, multiple people will inevitably make connections and see the next step in the innovation chain. 

But as innovation expands like a conquering army on multiple fronts, more and more puzzle pieces become available, and more puzzles are solved.  But unfortunately associated side effects and unanticipated consequences also build up, and my concern is that they can potentially overwhelm us. And this is compounded because often, as in the case of climate change, dealing with side effects can be more demanding than the original innovation. And because they can be slow to emerge, they are often deeply rooted before we become aware of them. As we look forward, just taking AI as an example, we can already somewhat anticipate some worrying possibilities. But what about the surprises analogous to climate change that we haven’t even thought of yet? I find that a sobering thought that we are attempting to create consciousness, but despite the efforts of numerous Nobel laureates over decades, we still have to idea what consciousness is. It’s called the ‘hard problem’ for good reason.  

Stop the World, I Want to Get Off: So why not slow down? There are precedents, in the form of nuclear arms treaties, and a variety of ethically based constraints on scientific exploration.  But regulations require everybody to agree and comply. Very big, expensive and expansive innovations are relatively easy to police. North Korea and Iran notwithstanding, there are fortunately not too many countries building nuclear capability, at least not yet. But a lot of emerging technology has the potential to require far less physical and financial infrastructure.  Cyber crime, gene manipulation, crypto and many others can be carried out with smaller, more distributed resources, which are far more difficult to police.  Even AI, which takes considerable resources to initially create, opens numerous doors for misuse that requires far less resource. 

The Atomic Weapons Conundrum.  The challenge with getting bad actors to agree on regulation and constraint is painfully illustrated by the atomic bomb.  The discovery of fission by Strassman and Hahn in the late 1930’s made the bomb inevitable. This set the stage for a race to turn theory into practice between the Allies and Nazi Germany. The Nazis were bad actor, so realistically our only option was to win the race.  We did, but at enormous cost. Once the ‘cat was out of the bag, we faced a terrible choice; create nuclear weapons, and the horror they represent, or chose to legislate against them, but in so doing, cede that terrible power to the Nazi’s?  Not an enviable choice.

Cumulative Knowledge.  Today we face similar conundrums on multiple fronts. Cumulative knowledge will make it extremely difficult not to advance multiple, potentially perilous technologies.  Countries who legislate against it risk either pushing it underground, or falling behind and deferring to others. The recent open letter from Meta to the EU chastising it for the potential economic impacts of its AI regulations may have dripped with self-interest.  But that didn’t make it wrong.   https://euneedsai.com/  Even if the EU slows down AI development, the pieces of the puzzle are already in place.  Big corporations, and less conservative countries will still pursue the upside, and risk the downside. The cat is very much out of the bag.

Muddling Through:  The good news is that when faced with potentially perilous change in the past, we’ve muddled through.  Hopefully we will do so again.   We’ve avoided a nuclear holocaust, at least for now.  Social media has destabilized our social order, but hasn’t destroyed it, yet.  We’ve been through a pandemic, and come out of it, not unscathed, but still functioning.  We are making progress in dealing with climate change, and have made enormous strides in managing pollution.

Chain Reactions:  But the innovation chain reaction, and the impact of cumulative knowledge mean that the rate of change will, in the absence of catastrophe, inevitably continue to accelerate. And as it does, so will side effects, nefarious use, mistakes and any unintended consequences that derive from it. Key factors that have helped us in the past are time and resource, but as waves of innovation increase in both frequency and intensity, both are likely to be increasingly squeezed.   

What can, or should we do? I certainly don’t have simple answers. We’re all pretty good, although by definition, far from perfect at scenario planning and trouble shooting for our individual innovations.  But the size and complexity of massive waves of innovation, such as AI, are obviously far more challenging.  No individual, or group can realistically either understand or own all of the implications. But perhaps we as an innovation community should put more collective resources against trying? We’ll never anticipate everything, and we’ll still get blindsided.  And putting resources against ‘what if’ scenarios is always a hard sell. But maybe we need to go into sales mode. 

Can the Problem Become the Solution? Encouragingly, the same emerging technology that creates potential issues could also help us.  AI and quantum computing will give us almost infinite capacity for computation and modeling.  Could we collectively assign more of that emerging resource against predicting and managing it’s own risks?

With many emerging technologies, we are now where we were in the 1900’s with climate change.  We are implementing massive, unpredictable change, and by definition have no idea what the unanticipated consequences of that will be. I personally think we’ll deal with climate change.  It’s difficult to slow a leviathan that’s been building for over a hundred years.  But we’ve taken the important first steps in acknowledging the problem, and are beginning to implement corrective action. 

But big issues require big solutions.  Long-term, I personally believe the most important thing for humanity to escape the gravity well.   Given the scale of our ability to curate global change, interplanetary colonization is not a luxury, but an essential.  Climate change is a shot across the bow with respect to how fragile our planet is, and how big our (unintended) influence can be.  We will hopefully manage that, and avoid nuclear war or synthetic pandemics for long enough to achieve it.  But ultimately, humanity needs the insurance dispersed planetary colonization will provide.  

Image credits: Microsoft Copilot

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Acting on Strategy and Tactics

Acting on Strategy and Tactics

GUEST POST from Mike Shipulski

When it comes to strategy and tactics, there are a lot of definitions, a lot of disagreement, and a whole lot of confusion. When is it strategy? When is it tactics? Which is more important? How do they inform each other?

Instead of definitions and disagreement, I want to start with agreement. Everyone agrees that both strategy AND tactics are required. If you have one without the other, it’s just not the same. It’s like with shoes and socks: Without shoes, your feet get wet; without socks, you get blisters; and when you have both, things go a lot better. Strategy and tactics work best when they’re done together.

The objective of strategy and tactics is to help everyone take the right action. Done well, everyone from the board room to the trenches knows how to take action. In that way, here are some questions to ask to help decide if your strategy and tactics are actionable.

What will we do? This gets to the heart of it. You’ve got to be able to make a list of things that will get done. Real things. Real actions. Don’t be fooled by babble like “We will provide customer value” and “Will grow the company by X%.” Providing customer value may be a good idea, but it’s not actionable. And growing the company by an arbitrary percentage is aspirational, but not actionable.

Why will we do it? This one helps people know what’s powering the work and helps them judge whether their actions are in line with that forcing function. Here’s a powerful answer: Competitors now have products and services that are better than ours, and we can’t have that. This answer conveys the importance of the work and helps everyone put the right amount of energy into their actions. [Note: this question can be asked before the first one.]

Who will do it? Here’s a rule: if no one is freed up to do the new work, the new work won’t get done. Make a list of the teams that will stop their existing projects before they can take action on the new work. Make a list of the new positions that are in the budget to support the strategy and tactics. Make a list of the new companies you’ll partner with. Make a list of all the incremental funding that has been put in the budget to help all the new people complete all these new actions. If your lists are short or you can make any, you don’t have what it takes to get the work done. You don’t have a strategy and you don’t have tactics. You have an unfunded mandate. Run away.

When will it be done? All actions must have completion dates. The dates will be set without consideration of the work content, so they’ll be wrong. Even still, you should have them. And once you have the dates, double all the task durations and push out the dates in your mind. No need to change the schedule now (you can’t change it anyway) because it will get updated when the work doesn’t get done on time. Now, using your lists of incremental headcount and budget, assign the incremental resources to all the actions with completion dates. Look for actions and budgets as those are objective evidence of the unfunded mandate character of your strategy and tactics. And for actions without completion dates, disregard them because they can never be late.

How will we know it’s done? All actions must call out a definition of success (DOS) that defines when the action has been accomplished. Without a measurable DOS, no one is sure when they’re done so they’ll keep working until you stop them. And you don’t want that. You want them to know when they’re done so they can quickly move on to the next action without oversight. If there’s no time to create a DOS, the action isn’t all that important and neither is the completion date.

When the wheels fall off, and they will, how will we update the strategy and tactics? Strategy and tactics are forward-looking and looking forward is rife with uncertainty. You’ll be wrong. What actions will you take to see if everything is going as planned? What actions will you take when progress doesn’t meet the plan? What actions will you take when you learn your tactics aren’t working and your strategy needs a band-aid?

  • What will you do?
  • Who will do it?
  • When will it be done?
  • And how will you know it’s done?

Image credit: Eric Minbiole

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Revolutionizing Customer Service

Brian Higgins On Driving Verizon’s Customer Experience Vision

Revolutionizing Customer Service - Brian Higgins On Driving Verizon's CX Vision

GUEST POST from Shep Hyken

If you have the best product in the world, that’s nice, but it’s not enough. You need a strong customer experience to go with it.

If you have the best service in the world, that’s nice, but it’s not enough. You need a strong product to go with it.

And one other thing. You also need customers! Without them, it doesn’t matter if you have the best product and the best service; you will eventually go out of business.

That’s why I’m excited about this week’s article. I had the opportunity to have an Amazing Business Radio interview with Brian Higgins, the chief customer experience officer at Verizon Consumer. After a career of 20-plus years working for one of the most recognized brands in the world, he has a lot to share about what it takes to get customers to say, “I’ll be back.”

Verizon is one of the most recognizable brands on the planet. A Fortune 50 company, it has more than 100,000 employees, a global presence serving more than 150 countries, more than $130 billion in annual revenue and a market cap of more than $168 billion.

Higgins made it clear that in addition to a premium network and product offerings, there needs to be a focus on customer experience with three primary objectives: addressing pain points, enhancing digital experiences and highlighting signature experiences exclusive to Verizon customers/members. They want to be easy to do business with and to use Customer Experience (CX) to capture market share and retain customers. What follows is a summary of Higgins’ most important points in our interview, followed by my commentary:

  1. Who Reports to Whom?: With Verizon’s emphasis on CX, one of the first questions I asked Higgins was about the company’s structure. Does CX report to marketing? Is CX over sales and marketing? Different companies put an emphasis on marketing, sales or experience. Often, one reports to the other. At Verizon, sales, revenue and experience work together. Higgins says, “We work in partnership with each other. You can’t build an experience if you don’t have the sales, revenue and customer care teams all on board.” The chief sales officer, chief revenue officer and chief experience officer “sit next to each other.”
  2. Membership: In our conversation, Higgins referred to Verizon’s customers as customers, members and subscribers. I asked which he preferred, and he quickly responded, “I would refer to them as members.” The membership is diverse, but the goal is to create a consistent and positive experience regardless of how individuals interact with the company. He sees the relationship with members as a partnership that is an intricate part of their lives. Most people check their phone the moment they wake up, throughout the day, and often, it’s one of the last things they check before going to bed. Verizon is a part of its members’ lives, and that’s an opportunity that cannot be mismanaged or abused.
  3. Employees Must Be Happy Too: More companies are recognizing that their CX must also include EX (employee experience). Employees must have the tools they need. This is an emphasis in his organization. Simplifying the employee experience with better tools and policies is the key to elevating the customer’s experience. Higgins shared the perfect description of why employee experience is paramount to the success of a business: “If employees aren’t happy and don’t feel they have the policies and tools they need that are right to engage with customers, you’re not going to get the experience right.”
  4. Focus on Little Pain Points: One of the priorities Higgins focuses on is what he refers to as “small cracks in the experience.” Seventy-five percent of the calls coming in to customer care are for small problems or questions, such as a promo code that didn’t work or an issue with a bill. His team continuously analyzes all customer journeys and works to fix them when needed. This helps to minimize recurring issues, thereby reducing customer support calls and the time employees spend fixing the same issue.
  5. The Digital Experience: Customers are starting to get comfortable with—and sometimes prefer—digital experiences. Making these experiences seamless and user-friendly increases overall customer satisfaction. More and more, they are using digital platforms to help with the “small cracks in the experience.” Employees also get an AI-infused digital experience. Higgins said Verizon uses AI to analyze customer conversations and provide real-time answers and solutions to employees, demonstrating how AI can support both employees and customers.
  6. Amplifying the Power of One Interaction: The final piece of wisdom Higgins shared was about recognizing how important a single interaction can be. Most customers don’t call very often. They may call once every three years, so each interaction needs to be treated like it’s a special moment—a unique opportunity to leave a lasting positive impression, one that leaves no doubt the customer made the right decision to do business with Verizon. Higgins believes in treating the customer like a relative visiting your home for a holiday. He closed by saying, “You’d be amazed how getting that one interaction with a customer right versus anything less than right can have a huge impact on the brand.”

Higgins’ vision for Verizon is not just about maintaining a superior network. It’s about creating an unparalleled customer experience that resonates with every interaction. As Verizon continues integrating advanced AI technologies and streamlining its processes, the focus continues to be on personalizing and enhancing every customer touchpoint, creating an experience that fosters high customer satisfaction and loyalty.

Image Credits: Pexels

This article originally appeared on Forbes.com

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