innovation culture Archives

May 19, 2018June 5, 2020

Better Capitalism Requires 3 Reforms

[This article is from a talk I gave to members of the Olympic Club on May 10, 2018, A Better Capitalism. The current economic and political framework (capitalism) is failing too many stakeholders. Evidence abounds and isn’t the subject of the talk. With 3 simple policy reforms we are on our way to a better capitalism. This may seem impossible at first. But, so was putting in place policies that enabled the building of massive towers of wealth while doing harm to people, communities, and the environment. I’ve turned off comments but feel free to reach me directly or comment and share on social media.

A Better Capitalism – an 8 minute talk and an even quicker read

I’m a pragmatist. I believe we can all do better, as individuals, organizations, even the world community. So, I’m optimistic. But, I also live in the real world. In my world view, I see things as connected. They don’t sit artificially isolated from one another. Here are the connections that I see:

Growth in the city and tents in the parks and spaces in-between
Record corporate profits and the unpaid shadow work each of us perform
Globalization, offshore profits, flattening wages, and boomerang kids
Hollowed out communities and politicians desperate to remake them
Indebted consumers addicted to things and stuff to distract them
Marginalized and outraged citizens and the tone-deaf politicians elected to represent
Registered voters not participating in a country divided with scapegoats aplenty

We can have lawful, dignified, respectable capitalism or we can have unbridled greed, wanton destruction, and divisive crony capitalism with fewer winners supported at the expense of the public and the environment.

I’d like a better capitalism where we get the spoils of competition, continuous innovation and benefits for the many. I love that our trade and industry are privately owned and operated for profit.

I love capitalism. But, I’d love a better capitalism, even better.

What might that look like? That’s what I’ve been pondering. That’s what I want to tell you. I only have time to tell you about 3 big ideas. Here they are.

Big idea #1 – We need to decouple healthcare and employment.

Here is why. The world of work has changed. There is more and more automation. Companies are paring down employment. They use on-demand help, independent contractors, and are pushing more people to part-time to avoid the full costs of employees.

Uber and Lyft have declared themselves platforms, not transportation companies, even though their main business is providing transportation services. It’s innovative, but make no mistake this is about internalizing gains while externalizing costs to the public.

Imagine instead of fighting innovation, we embraced more of it. Free the innovators. Embrace the gig economy but don’t further cripple labor in the process. We need to decouple healthcare and employment to give 99% of the people a little bit more.

Imagine US businesses were free to focus on their core purpose and could compete more effectively with other developed nations, nations where employees already enjoy national healthcare.

Free businesses from providing healthcare and watch innovation flourish and entrepreneurship soar. American businesses will be more competitive and without adding a single tariff. What this likely means is a #MedicareForAll #SinglePayer system. That is the least expensive healthcare program we have in this country with the best health outcomes. It would also be focused on healthcare as opposed to for-profit sickcare. Get used to hearing that idea. It will come back again and again until it finally arrives.

Big Idea #2 – We need a Parasitic Index.

For too long people have been duped into believing maximizing corporate profits is synonymous with increasing shareholder value. It isn’t the same thing. You can do massive harm to customers, employees, and the environment in the name of short-term profits but you’ll have destroyed shareholder value. Just ask Volkswagen. Ask the CEO of the now defunct Peanut Butter Corporation of America who sits in a jail cell. Ask the former makers of Asbestos.

Maximizing shareholder value should mean providing reasonable returns to shareholders while acting in harmony with the environment, communities, customers, and employees. You balance stakeholders not pit one against the other.

A Parasitic Index would show how much a corporation leeches off society’s infrastructure and labor force – while killing its host in the process. Is the corporation a partner to the community or merely a beneficiary?

Imagine a world in which corporations didn’t extort cities and states for unneeded tax breaks but instead became partners in building stronger communities, improving the environment, and creating more stable democracies. Capitalism that serves is a better breed of capitalism than the unbridled greed varietal.

I just returned from a trip to central and Eastern Oregon. One of the cities I drove through was Prineville. That’s where Les Schwab founded and grew his $1B dollar tire retail chain. His motto was Doing the Right Thing Since 1952. If Jeff Bezos embraced that motto Amazon might look different and they probably wouldn’t have halted downtown development in light of the city council’s proposed “Head Tax.”

Companies Who Pay a Living Wage Would Score Lower on the Parasitic Index Whereas Companies with Massive CEO-to-Worker Pay Ratios Would Score Higher

When Capitalism Fails Government Steps in to Alleviate Suffering as it did with the Federal Emergency Relief Act which brought economic livelihood and meaning for people with the WPA and CCC

Big Idea #3 – We need Congress to give federal prosecutors the ability to revoke a state-granted corporate charter.

You might need a little background here. The federal government doesn’t provide any mechanism to form a corporation. That is left up to the secretaries of state within each state.

Corporations have long figured out they can abuse employees, customers, and communities with impunity, to maximize profits. They can do so because if the state attorney general where they are incorporated were to harm them, the corporation can simply threaten to move to another “friendlier” state. So, companies based in Delaware, for example, are seldom sued by the State Attorney General of Delaware.

Without the ability to revoke a state-granted corporate charter, bad actors simply pay federal fines if caught in a misdeed and chalk it up to the cost of doing business. Wells Fargo recently paid a hefty federal fine but it was still tiny compared to its quarterly profit. Facebook has a long history of apologies. Losing their right to exist as a corporation would be a much stronger deterrent.

In Summary:

In society, there will always be bad actors because as Mr. Burnham points out there are people involved. Modern capitalism isn’t living up to its potential – maybe that’s because it’s not yet ruled by robots and artificial intelligence. There are still too many greedy humans in the mix.

The 3 ideas I shared will create a better capitalism. A better breed of capitalism for the good of the many, not the few. Let’s confront reality. There are too many forces leading us to a gig economy. Let’s not fight it. Let’s embrace it and flourish in its presence. People need healthcare, let’s make that a priority.

There will always be bad actors. Let’s make it more transparent and unpopular to be one. Like the #MeToo movement did for individual accountability amid sexual abuse a better capitalism includes a parasitic index to shine a light on corporate accountability in a sea of economic abuse.

And let’s give the most egregious organizations a death sentence when warranted. The ability to revoke corporate charters will allow our representatives to protect all of us from some of us.

It not cruel. It’s not personal. It’s just business AND it’s better capitalism.

about the author

Gregory Olson’s latest book is L’ impossipreneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans. Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true.

Greg is a virtual chief marketing officer to small and medium sized businesses. He founded Delightability, LLC. with the belief that if you delight customers success will follow.

September 20, 2016

Learning Innovation From Bees

There is something you should understand about ideas. It isn’t always the highest quality ideas that advance. Sadly, in many organizations and groups, WHO an idea comes from matters most; but, it shouldn’t. In this regard we could learn something from nature, in particular from bees.

Bees have a healthy innovation culture

Each morning, scout bees venture off in search of nectar, water, and better nesting grounds. This pursuit is necessary to sustain life for the entire colony. When a bee discovers a stash of nectar, water, or a great nesting site, it returns to the hive and performs a waggle dance.

In this dance the energy exuded signals to the surrounding bees the value of the treasure found. More waggle means a better stash. This is a fully inclusive process. No scout bees returning to the nest are discriminated against because they don’t carry a certain title, possess a certain number of years experience or have a direct relationship with the queen.

Every Organization Has Buried Treasure

Bees appear to work alone but are always working in a larger distributed team for a common purpose to keep the hive alive and thriving. Whether you lead an organization or simply work with or for one, act more like a bee and less like a raccoon and your hive may soon thrive, too. Imagine the treasures organizations could free from their employees’ imaginations if those employees were as engaged as waggle dancing bees.

Recipe #40: Dance Like a Bee

Have a discussion with your team to brainstorm how you can work together more like bees and less like raccoons. Discuss how your organization handles shiny objects and how you can establish the equivalent of an innovation waggle dance.

About The Author

Gregory Olson is the author of The Experience Design Blueprint, a book about designing better experiences and then making them come true. Chapter 8: Bees & Raccoons especially pertains to this blog post. His latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

Gregory Olson founded marketing strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help. Gregory serves as a volunteer board member for Oikocredit Northwest, a support association for social investor, Oikocredit International and as an advisor for Seattle University’s Department of Computer and Electrical Engineering.

September 13, 2016

The Care and Feeding of Ideas

[This article is from a talk I gave to members of the Olympic Club on September 1, 2016. I’ve added a few links and shared it here for members of the Olympic Club and the broader public. I’ve turned off comments but feel free to reach me via phone, email or social media.]

an 8 minute talk and an even quicker read

Everything begins as an idea, this talk, this Club, even The Rainier Club. They ALL started as ideas. But, ideas are not exclusive to any club. EVERYBODY gets ideas.

Some ideas will move forward and make an impact in people’s lives. Nine of us recently convened on an electric boat on Lake Union to celebrate Mr. Riddle’s 70th birthday. That too, started as an idea. The idea happened and I think it made a very positive impact for all involved.

While some ideas actually happen, other ideas remain trapped in our imaginations or become stalled, never to make an impact in the real world. I was curious about this. I had my own experiences, but I wanted to hear from others. While doing research for my first book, The Experience Design Blueprint, I asked people in all types of organizations why they thought ideas failed to gain traction.

Idea Mortal Enemy #1 – Lack of Clarity

The number one reason I heard for why ideas don’t move forward was “lack of clarity.” People simply didn’t know how to get started or what the next step was. What people really need is a clear path forward and a starting point – even a small step in the right direction. But, we have a poverty of language when discussing the movement of ideas. One of the things we need to understand about ideas is that – as they move from concept to completion – the people involved operate in three distinct psychological zones. Two of these zones we have some familiarity with, the third zone – not so much. The first psychological zone is the idea zone.

Idea Zone

This is the zone we are in when we generate ideas. The idea zone is home to sticky notes, pictures, envelopes and napkins, the whiteboard, and every other place we capture our ideas large or small, good or bad. We are all familiar with the idea zone.

Execution Zone

The other zone that we are familiar with is the execution zone. Here is where the calendar lives, and deadlines and our to-do lists. This is the mental zone for all items related to the discipline of execution. When you are reviewing the Olympic Club program schedule or other upcoming appointments, you are in the execution zone.

I’m going to pause here to take a quick poll? Who here considers themselves more of an idea person? Raise your hand. And who here considers themselves to be more of the execution police – that person that is mindful of the details, even holding others accountable? Yes, it’s the same result I see over and over; I usually find about a 50/50 mix when I take that poll.

Advancing Ideas IS the Challenge

The challenge is in going from the idea zone to the execution zone. Specifically, how do you advance an idea, especially when multiple people are involved? I’ve asked this question 100’s of times and I rarely receive good answers. This is a key area where the poverty of language is harmful to ideas.

Idea Buzz Kill

A board member once shared with me what she would tell other board members that approached her with an idea. She would say to them, “That is a perfectly good idea. Why don’t you come back to me when you have a fully executable plan?” What she didn’t realize at the time was that she was in the execution zone and the people approaching her with new ideas were in the idea zone. She was effectively shutting people down without realizing it. She was dismissing ideas outright, not on the merits of the ideas, but because of how and when those ideas were shared. They needed to have a different conversation. And, that leads us to the third psychological zone, the zone we are mostly blind to, the conversation zone.

The Conversation Zone – Seeing The Big Picture

The conversation zone is the place where we have authentic dialogue. In this mental state, alone or with others, we flesh out ideas enough to gain further understanding of the idea and why it matters. In this zone, we gain the perspectives of others that might sharpen and improve our ideas. In the conversation zone we get on the same page and build a simple plan that all can agree to. When we are in this zone we are trying to “see” the big picture. After creating the big picture we may realize the idea isn’t worth pursuing after all and that’s okay.

If you skip the conversation zone – by jumping directly to the execution zone you’re likely to burn precious time and resources. And, you’ll like hear these questions.

What are we doing again?
Why are we doing this?
What’s the next step?

Overcoming Stuck a.k.a. Wandering in the Swamp

The conversation zone provides the clear path forward and addresses that #1 reason ideas don’t move forward – lack of clarity. Each of us moves in and out of the three psychological zones; so do those around us. That makes it especially challenging when working in groups. People are often in different zones but we don’t recognize it. There are no indicator lights or flags. Having a mental model for the three psychological zones is helpful. But establishing guiding principles for each zone adds to the care and feeding of ideas.

Guiding Principles for the Idea Zone:

When you have an idea put it in the playground (that’s the name for the space where you capture ideas)
Ideas can come from anywhere and at times inconvenient
Ideas are not judged in the playground

Guiding Principles for the Conversation Zone:

If you want to advance an idea, create a big picture
An idea not implemented makes no impact
Any idea can be broken down into big chunky steps along a implementation path
Every idea should have a payoff

Guiding Principles for the Execution Zone:

A task unclaimed is a task undone
Inspiration has expiration, so it’s best to get started early
Once you get started, it is easier to keep going
Show visible progress to motivate yourself and others on the team

Recognizing the three psychological zones and referring to guiding principles for each zone can create smoother, more transparent behavior and more positive outcomes. It can also eliminate the drama and ill feelings that plague individual members within groups. Overcoming the poverty of language and normalizing productive behavior around ideas is a pathway to higher performance – as an individual and especially as a team.

One of the CEO’s I interviewed for my book wished that I had shared these guiding principles with him earlier. He recalled a time when he shut down an employee on a conference call when that employee suggested an idea. Rather than shutting him down, he later realized he should have said, “Sounds like a good idea. Put that in the playground and we’ll discuss it later.” Most ideas do arrive at inconvenient times. You know this firsthand.

Talking About the Movement of Ideas is Empowering

A client, a CEO of a software company, was frustrated because none of his employees shared ideas, although they interacted frequently. One of the first things we did when we began working together was to create a visible playground where ideas could live. Once we did that ideas flowed to it freely. The company entered new partnerships and created mobile and cloud versions of its software. Each of those ideas initially started as an idea written on sticky note and placed in the playground.

In Summary

Ideas are like food. They are better to be shared with others than left to deteriorate in isolation. Imagine if more ideas received the care and feeding they needed in order to move forward. Imagine that happened all across this city and in every city. Imagine people getting involved to nudge ideas forward; ideas that could make a big impact.

As I mentioned in my opening remarks, everything begins with an idea. Perhaps your next idea is right around the corner. Whenever it arrives and whether it is large or small, and whether you are working alone or with a team, I wish you much clarity and clear path forward. I hope your next idea fully takes flight – liftoff.

about the author

Gregory Olson’s latest book, L’ impossi preneurs: A Hopeful Journey Through Tomorrow, is a light-hearted and deadly serious book containing a couple of hundred ideas that if implemented would create a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans. Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true.

Gregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help. Gregory also serves on the board of Oikocredit Northwest, a support association for social investor, Oikocredit International and the advisory board for Seattle University’s Department of Computer and Electrical Engineering.

August 11, 2016

Clouds or Weeds: Where Should Strategy Live?

Having lofty ambitions is good. After all, by striving to achieve the impossible we may actually do it. And, the rewards can be many. But, if we only have lofty ambitions and pay no heed to the myriad actions required along the way to achieving them then we’ll likely never reach our destination. Many organizations (and individuals) fall into this head-in-the-clouds trap.

Being More Grounded

You’ve heard it, maybe even said it, “You’ve got to be more grounded. Get your head out of the clouds.” People who say such things are mindful of the implementation details. They are the “execution police” among us. Whereas some minds are filled with lofty ambitions, others are consumed with getting things done. The details they fret over may appear to some to be too grounded, or “weed-level.” But completing weed-level projects is necessary for a functional organization. Whether it’s invoicing the newest customer or making payroll, updating the website, or producing and distributing the latest company news or developing a block of code, weed-level projects guided by a coherent strategy propel an organization toward its destination.

Guided by Coherent Strategy

The caveat in that last statement is “guided by a coherent strategy.” If weed level projects become the strategy unto themselves then the organization is headed for trouble. When strategy gets hijacked by a propensity toward getting things done, minutiae can begin to consume all available resources. When this happens, there is no longer capacity in the organization for healthy discourse. Nobody would ever hang a banner on the wall expressing the norm of “Guided by Minutiae” but many have felt this way in organizations large and small. This spells trouble for employee engagement and an otherwise would-be innovation culture.

Beware of Action Junkies

At the extreme, “action junkies” place demands on the organization that might be counter to the strategy already in play. The time horizon for gratification shrinks. Instead of thinking long term strategy and the benefits thereof, short-termism takes over. This can happen at all levels of the organization, shifting the focus and further demanding the attention of others. Suddenly people are pulled into “surprises” while others may be shed like an unwanted winter coat. You’ve heard this play out in organizations before; perhaps you’ve even uttered the words, “We just need….” When short term tactics become the basis of your strategy, your organization begins to drift. Persistent strategic drift will cripple an organization, no matter its size or tenure. See related articles: Don’t Let Your Organization Become a Lumpy Snowball and also Focus Focus or Hocus Pocus.

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” – Sun Tzu

Sun Tzu said this well, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” 2500 years later we still are dealing with the same human foibles on the battlefield, in board rooms, and in every room.

The False Choice

In the title of this article I presented you with a false choice, namely, where should strategy live, in the clouds or in the weeds? Actually, you need strategy in both places. Your strategy needs to produce strategic imperatives that communicate the overarching aims of the organization. You also need a strategy to continuously ensure that the execution level details remain hitched to strategic aims. This passes the relevance test. You should be able to walk down the strategy from the clouds to the weeds and vice versa from the weeds up to the clouds. If you cannot do this without massive tension among those involved in the discussion then more work (and conversation) is warranted. Two scenarios are likely at this point.

Scenario 1: Mapping but Questions Remain

You’ve heard of such practices and maybe have some firsthand experience mapping individual goals to department goals and objectives that in turn map to the organization’s strategic imperatives. That is great. You’ve started but related challenges to resolve include:

Is your innovation culture able to detect changes in customer mood, needs, and desires?
What about the changes in technology, communications, and other factor outside your organization that are certain to change?
Does your organization embrace ideas that may come at times inconvenient? Does it matter where those news idea comes from?
What about responsiveness to competitive changes or budding alliances in the business landscape?
And, how will you keep score of your progress or lack thereof?

Scenario 2: Conversation Needed

You’ve not performed strategy mapping in any form. In that case, definitely more conversation is warranted. For that, I recommend you assemble a team, carve out quality time (and place), and begin a regular dialogue beginning with the questions raised in scenario 1) , but more generally how can your organization remain relevant in a constantly changing environment? One model to leverage is the Promise Delivery System, the subject of Chapter 8 in, The Experience Design Blueprint.

The model and method you use isn’t as important as you establishing a regular dialogue on strategy and execution. Once you do, you’ll more naturally know whether the weed-level project du jour is “on-strategy” or a defection thereof.

A Strategy That Lives

When enough people in the organization are executing on a coherent and communicated strategy, employee engagement will soar, an innovation culture will coalesce, and the organization’s well being will improve no matter how you’ve collectively defined that. Then you can revisit the original question about where strategy should live. Instead of answering “in the clouds” or “in the weeds” you can confidently state “our strategy lives in both places and in between. We are able to shape and shift our strategy as needed. Our strategy is alive and well. Our many stewards of strategy are on the watch and at the ready.”

about the author

Gregory Olson is a consultant, speaker, and author. He founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and entire nations. Gregory Olson’s latest book is L’ impossipreneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true.

August 5, 2016

Small Business Leaders Struggle with the 3-Legged Stool: How to Overcome

Like most entrepreneurs and small business owners, you likely have a long list of things that get shoved off to the back burner waiting for another day or week when there is more time. The trouble is, more time never actually arrives, right?

Today is no different from yesterday and tomorrow will look much the same. You only have 24 hours in a day. When it comes to time, there is no aristocracy of wealth. Genius or laziness is not rewarded or punished with any more time.

The 3-Legged Stool

Every small business owner struggles with maintaining balance among these areas:

Maintaining a smooth operation – invoicing customers, paying expenses, having good procedures in place to prevent business breakdown and wasting resources
Delivering value – providing to customers whatever your business does as its core offering, i.e., products, services, and support
Promoting value – performing the sales, marketing, and business development functions to ensure 1) prospects know your business exists; 2) customers understand your value and provide you with validation; and 3) employees, partners, and customers stay engaged.

Stop Letting Your Personal Life Suffer

The person sitting atop a well-balanced 3-legged stool has the opportunity for a personal life. Chances are you’re not very good at all three legs of the stool. In a large company you have the benefit of departments to focus on activities related to the different legs of the stool. That probably isn’t the case in your small business where you have to spread your time, talent, and attention across sales, marketing, account payable, human resources, product development, etc. Even if you are good in all areas, you’ll struggle with the limited time available. When the legs of the stool get out of balance or become all-consuming then you and your personal life get sacrificed or worse, topple to the ground. Business performance then also suffers. We’ve all been there.

Five Things to Overcome the Struggle

Recognize the need to slow down: sometimes you need to slow down in order to speed up. It is true when hiking up a steep trail and it’s also true in business. As a now deceased friend has taught me, “Make time to linger.” R.I.P. Donald Marsh.
Revisit your operation: perhaps you need new operating mechanisms that could prevent snags in the business operation that if left unresolved will end up consuming resources. As a start, begin to identify where your time gets wasted. If you don’t know, begin monitoring your own time over the next week or month. Identifying the workarounds could be a place to fix first. If you have employees, they’ll know these rough spots.
Stay on course: your energy spread in too many directions can fatigue you and crush personal and business performance. Be deliberate on your destination and script the critical moves needed to get there. Read the Destination Postcards article for an exercise that can bring discipline to charting a course and then staying true to that course.
Confront reality: mind the uncomfortable gap you have between your current performance and expected performance. Focus on key areas and find acceptable discomfort for what you’ll not work on in the near term. You cannot do it all, so find some peace in accepting that. See Business Performance Continuums exercise.
Force multiply through others: recognize that you cannot do it alone. It is difficult to involve somebody else in your projects and business, especially if you already feel overwhelmed. But, chances are you’ve wasted more time agonizing over how to start a project that another person would have completed by now, if you engaged them. There is plenty of talent available to help you in whatever your endeavor is. More talent on the team can come in many forms: full-time or part-time, employee or alliance with a service provider. At Delightability, we are a virtual marketing department serving clients’ needs, providing both consulting and creative services. Whether small or large projects, every one of our client engagements involved busy business leaders, like you. But, remember what our clients have now come to realize, namely, that you don’t get the benefits of a strategy not implemented.

Write that down on your wall or whiteboard and revisit it often, “You don’t get the benefits of a strategy not implemented.” Eventually, you’ll do something different to close your uncomfortable gap across the 3 legs of the stool while at the same time getting your personal life to soar.

about the author

Gregory Olson is a business and marketing consultant, author, and speaker. He founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and entire nations.
Gregory Olson’s latest book is L’ impossipreneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true.

July 25, 2016July 4, 2022

3-Funnel Diagnostic; Fixing What You Cannot See

You see a model that is so simple that it can't possibly apply to your unique situation. That's what most people believe. It is also the reason why most humans (and business leaders in particular) struggle to learn from others. But, people like you do learn; this article is for you.

The 3 Funnels is the Key to Organizational Longevity

No matter the size or type of your organization, you’re subject to the 3 funnels - there is no escape. Effectively navigate the 3 funnels and never run out of cash and you'll be a going concern forever. The 3 funnels are (left to right in the image above):

The exposure funnel where you turn suspects (A) into prospects (B);
The adoption funnel where you turn prospects (C) into cash generating customers that are using your product or service (D);
The retention funnel where you turn customers (E) into loyal advocates (F) that help you attract more prospects, in turn reducing your marketing expenses related to the exposure funnel.

Leaky Funnels and Blocking Covers

Limited flow through any of these funnels negatively impacts your organization. The funnel shape implies that there is a slowdown; people enter the top and then take a while to get out through the bottom. No matter how perfect your organization you won't have 100 percent throughput. Some customers never make it through the funnel. It can be as though the funnel is leaky or has a cover that prevents people from entering. You don't want to be a board member, executive leader, or manager that makes decisions that in effect, limit the flow through the funnels. Don't be your own competitor.

3 Funnel Diagnostic

If you want to spark some authentic dialogue in your organization then pull together a team and perform a 3 Funnel Diagnostic.

First, build a report against the 3 funnels to show how many people are at each of the stages. Can you do this?
Secondly, discuss all of the activities that your organization is involved with in moving people from initial suspect all the way through advocacy. No doubt you discover organizational performance gaps. Understand the customer journey.
Thirdly, discuss what barriers are preventing people from entering each funnel or making it all the way through. By doing this, you'll surface where people get stuck and the reasons why. I guarantee you that the reasons will be more attributable to your organization's own performance gaps as opposed to your competitors doing a far superior job. This is especially evident in industries where customer satisfaction is low industry-wide.

Have a Better Conversation

Let's face it, in most organizations the discussion around the sales or marketing funnel is overly simplified and dominated by whichever department is more influential at the time. But, that isn't the most productive way to run a business. When sales and marketing are not working cooperatively together then customers and would-be customers suffer. Not long after that the business suffers.

A better conversation centers around your customer and the steps (touchpoints) they go through from first learning of your product, service, or company to becoming a loyal advocate. Three distinct funnels best represent this metamorphosis from suspect to prospect to customer to advocate. Sure, it is easier to dumb things down and create a single simplified funnel. But, imagine your accounting department or bookkeeper only had a single account as opposed to a full chart of accounts. You'd have an accounting nightmare and subsequently a tax nightmare. That is no way to run a business.

Evolve your conversation around sales and marketing funnels and your business will evolve, too. Proposing such a 3 Funnel Diagnostic will take some courage. But, you have courage, right? Want some assistance? Get in Touch.

about the author

Gregory Olson authored The Experience Design Blueprint, a book about designing better experiences and then making them come true. Chapters in the book that especially pertain to this article include:

Chapter 3: Who is in the Sandbox?
Chapter 8: The Promise Delivery System
Chapter 11: Barriers to Innovation and Overcoming the Wall

July 18, 2016

Mid-Year Business Performance Tune-up: 7-Step Action Plan for Leaders

Automobiles, machinery, and precision instruments at times need to be tuned and calibrated to ensure performance. Life and business have similar demands. If you aren’t concerned about performance then whatever you’re doing is adequate. But, periodically in your life and in your business you’ll want to re-evaluate strategies that are misfiring, products and services that seems amiss, a launch that falls short, an identity that isn’t working, communications that don’t connect, recognition that is absent, etc.

When there is an uncomfortable enough performance gap, then you’ll do something different. This is true in life and in business. Mid point in a calendar year is a natural point to reflect on the first half and project forward what you’d like to have happen by year-end. You may have a similar cycle with your financial planner and dentist. But, what about the rest of you and your business?

There are plenty of tools and conversations you can use. The key is to start. Once you begin it is easier to keep going and pretty soon you’ll be closing the uncomfortable gap just as you avoid toothaches and worse with periodic checkups and cleaning.

Here is a 7-Step Action Plan for a Business Performance Tune-Up

Revisit your strategic imperatives for the year – what were the big bets for the year and are they paying off? Didn’t really have any solid strategic initiatives? Now would be a good time to establish some. Get clear on the destination: where are you going and what does success look like? See related post: Make Work Feel Like Vacation
What have you learned and how can you apply it? Consider both the business landscape and the customer ecosystem. Organizational immaturity and old habits and patterns may get in the way of identifying and leveraging the talent and resources available in the business landscape. Also, if you don’t have personas to represent your various stakeholders now would be a good time to prioritize their development. Personas provide representative profiles for a customer base and other stakeholders too, e.g. investors, employees, partners, etc. As a design tool, they are a powerful way to visualize and communicate behaviors, goals, wants, needs, and frustrations.
Get clear on your audiences and priorities: what promises will you make and keep and to which audiences? Make visible your Promise Delivery System for each of your stakeholders. The Promise Delivery System is a closed loop system that revolves around an audience and includes strategy, delivery, validation, and learning. You have a Promise Delivery System for each stakeholder that is served as well as those who serve. This is the subject of CH 8 in the Experience Design Blueprint.
Define deliverables: what will you produce and deliver to keep your various promises? Think products, services, events, campaigns, programs, and communications.
How does all of this line up against the calendar? What will be your day-to-day operational reality? What will your organization invest its time and resources into?
Establish operating mechanisms: how will you stay on track and maintain your Promise Delivery System? What will be the rhythm and pace of the organization? Revisit your operating mechanisms and calendaring processes and events to ensure excellence in execution. Create an operating mechanism to capture ideas that may come at inconvenient times. Also, create an operating mechanism to evaluate and advance ideas. These are important to maintain (or establish) a culture of innovation.
Revisit your performance metrics. How are you keeping score? If any of your metrics are irrelevant, modify them. If something is working well and appears to be a bright spot, then do more of it. Dial-up the activities that drive desired metrics. Stay focused on those areas where you have uncomfortable gaps between current performance and desired performance. See related post: Business Performance Continuums. Identify experiments you can run to test ideas for value. These represent quick trips around the Promise Delivery System.

You wouldn’t be comfortable flying in a commercial airliner that doesn’t receive maintenance and performance tuning. Your business is no different. Don’t let you customers, employees, and partners suffer through an under-performing business, especially when many of them would love to be engaged in a solution path to higher performance.

“Drive thy business, let not that drive thee.”

Benjamin Franklin
Author, Printer, Scientist, Musician,
Inventor, Satirist, Civic Activist,
Statesman, and Diplomat
(1706 – 1790)

Ben Franklin said it well, “Drive thy business, let not that drive thee.” Leadership sets the tone and begins the conversation. If you’d like some brainshare and assistance shoring up your strategy and designing deliverables to accompany that strategy, then please contact me.

about the author

Gregory Olson authored The Experience Design Blueprint, a book about designing better experiences and then making them come true. Exercises and mental models in the book will build your confidence and competence in envisioning better possibilities and then making them come true, whether you are working alone or alongside a team. Chapters in the book that especially pertain to this article include:

Chapter 2: Make the Customer Come Alive
Chapter 3: Who is in the Sandbox?
Chapter 8: The Promise Delivery System
Chapter 9: The Neighborhood
Chapter 11: Barriers to Innovation and Overcoming the Wall
Chapter 13: Taking Flight
Chapter 14: The World of Work has Changed (see Glimpse)
Chapter 15: From Argh to Aha!

Read The Experience Design Blueprint on Kindle or any device using the free Kindle Reader application or read the full color print edition.

Gregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help. Gregory also serves as a volunteer board member for Oikocredit Northwest, a support association for social and impact investor, Oikocredit International.

May 30, 2016March 14, 2018

Making Truth Matter

[This article is from a talk I gave to members of the Olympic Club on May 26, 2016. I’ve added a few links and shared it here for members of the Olympic Club and the broader public. I’ve turned off comments but feel free to reach me on social media.]

an 8 minute talk and an even quicker read

Good afternoon gentlemen. Today I’m going to talk about the Truth.

3 noteworthy things happened this week.

First, a new book came out Bravehearts: Whistleblowing in the Age of Snowden. In the book, the senior DOD official in charge of the federal whistleblower program goes public with accusations that key officials retaliated against whistleblowers, destroyed permanent records and altered audits of multibillion dollar programs. They did this under political pressure. This senior official calls into question the very program that is supposed to protect whistleblowers when they report fraud, abuse, and waste.
Another noteworthy thing that happened was the acquittal of Edward Nero, one of the Baltimore police officers involved in Freddy Gray’s arrest and subsequent death. If you recall, the original incident is what sparked the Black Lives Matter movement.
And the 3rd thing that happened this week is that snopes.com, debunked stories that reported violence and specifically chairs being thrown at the democratic convention in NV. Numerous media outlets regurgitated the original tale that was casually fabricated in a 140 character tweet. Media outlets on the bandwagon included: The New York Times, CNN, MSNBC, the Associated Press, CBS, and NPR.

It has been a really busy week for the TRUTH.

Now, no matter what we believe or how we react to these developments, there is a TRUTH that supersedes our opinions and reactions. I view truth much like I do gravity. You can choose not to believe but that doesn’t make it go away.

What is Truth?

I want to be crystal clear on what I mean when I say Truth. I’m talking about conformity to facts; accuracy. Certainties. The truth I’m talking about isn’t squishy. A moral relativist would have you believe that truth is relative to the circumstances. I’m not talking about a malleable truth or aberration of fact. I’m taking about that which is incontrovertible. Like Newton’s law of universal gravitation. It applies to everybody whether they choose to believe it or not.

Human Responses to The Truth

When we are exposed to a new truth, our reactions fall into a predictable range of human responses:

We can be apathetic. Maybe what we are hearing is simply noise to us. We really can’t be bothered with it.
Another response is we may simply adopt the truth immediately and adapt our own views.
We may also seek clarity. A person can react by seeking new information and knowledge – “Help me to see what you see, Mr. Severs.“

But sometimes the facts don’t fit our current views at all – that internal narrative we play in our head. When our views are challenged with a new truth we have a few OTHER options to choose from.

We can object outright: “That’s not true.” We can do this loudly and aggressively or we can do this quietly, slipping out of the conversation or even the room.
We can also redirect attention: This is the magician’s trick – misdirection. Here, we shift the attention to something else more fitting of our own views.
Another predictable reaction is we resort to any one of several logical fallacies. There are plenty of these to draw from. Most people are unaware of these fallacies even as they commit them.

The original logical fallacies were documented more than 2400 years ago by Plato and his thinking colleagues. You’d think we’d have learned by now.

Here are a few of my favorite logical fallacies.

The Ad Hominem Argument: This is where you attack your opponent’s character or personal traits in an attempt to undermine their argument.

Example: It is conceivable that any one of the presidential candidates could say something truthful. It could happen! But, reactions to their statements could easily be, “Well, he’s a communist.” “She’s a pant suits Nixon.” “He’s a xenophobe” So, we can’t trust them.

Another common logical fallacy is the The Appeal to Tradition: This is the fallacy that a standpoint, action or situation is right, proper and correct simply because it has “always” been that way. Imagine not being able to advance human progress in the name of tradition. You’d still be cooking over fire, hunting and gathering your own food, and you certainly would not be able to read this passage, and least of all on a computer or smartphone.

The opposite of this is The Appeal to Novelty or Innovation. This is the notion that this is NEW, and [therefore it must be] better!”

Then there is the The Big Lie Technique. This is the contemporary fallacy of repeating a lie, slogan, or talking-point until it becomes part of daily discourse and is no longer questioned. An example is the non-existent “Weapons of Mass Destruction” “WMD’s” in Iraq, used in 2003 as a false justification for invading that country. [See also Mind Hijacked: A History Lesson in Propaganda.]

There are a host of other logical fallacies. [University of Texas at El Paso has compiled a living document of logical fallacies. A nicely designed poster of commonly used logical fallacies has been created by Your Logical Fallacy Is.]

What About Reaction to Lies?

Up to now I’ve been talking about our range of reactions when we are exposed to the TRUTH. But, what if we are exposed to a lie? Sadly, it doesn’t really much matter.

Whether it is fact or fiction if it reinforces our beliefs then we strengthen our views, digging our heels in further. And, if it doesn’t strengthen our views then we dismiss it. Researchers refer to this phenomena as the “backfire effect.” It is even more pronounced when the new information challenges an especially emotional or long held belief. For a depth reading with examples on WMDs, Stem Cell Research, and Climate Change see this document.

The takeaway from this is: it’s really hard to change people’s minds. Some people will want to build a wall, no matter the facts presented to them.

Friedrich Nietzsche said it well, “Sometimes people don’t want to hear the truth because they don’t want their illusions destroyed.” I want to put this another way, “We only see the truth we are looking for.”

Conclusion

I opened this talk with stories about Freddie Grey, the new book BraveHearts, and debunked reports of chairs being thrown at the democratic convention. I used these 3 examples because:

Protecting Truthtellers is important in a free and democratic society. Truthtellers can prevent and end wars and get dangerous products removed from the market. [See also: Preventing the Next Scandal]
Police brutality is inexcusable, period. Lucky for you it wasn’t your family member. But Freddie Gray was someone’s son & brother.
Communication of all forms has become faster AND sloppier. When experienced reporters and media outlets are quick to judge and almost as quick to report, the Truth can Suffer.

TRUTH SHOULD MATTER.

Our republic in caught in the grips of a protracted presidential election. As a nation, we face important issues. It is hard to solve problems when you don’t even agree on the truth.

Ann Richards the former democratic governor of Texas once said, “We’re not going to have the America that we want until we elect leaders who are going to tell the truth not most days, but every day.”

But, the Truth is too important to leave to politicians, alone.

So, What Can WE Do?

In a civilized society each of us has a duty to respect and uphold the truth. We also have a duty to hold others accountable to do the same. Imagine the possibilities if we made the truth matter. In this election year, the Republican and Democratic parties are splintered. They are worried about healing and uniting their respective parties.

Their focus however, Ought To Be on healing a nation, not a political party. And, that gentlemen is the Truth. Now, I’m counting on You to uphold it.

about the author

Gregory Olson’s latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans. Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true.

April 30, 2016

Arbor Day: Your Chance To Be A Generous Designer

Nature is the Original Hacker

Nature is the original hacker; she’s been at it for a long time, much longer than humans. Does nature ever get it wrong? The follow-up question is, wrong from whose perspective, a human perspective? Or, is it like Leonardo da Vinci said of art, “Art is never finished, only abandoned.” Perhaps when we think of nature being wrong, whatever we’re observing simply isn’t completed.

Generous Design by Nature

Nature is bountiful and sustainable; it’s also very generous. Trees, for example, are a generous gift from nature. Glorious natural trees are water absorbing, pollution filtering, soil protecting, oxygen giving, and shelter providing. Planting trees is good for the planet as trees absorb carbon dioxide, one of the gases that collect in the atmosphere, trap heat, and warm the planet. Trees are good for people too, with many positive psychological benefits. Being in the presence of swaying trees reduces anxiety, lowers blood pressure and connects us to the natural environment. The soothing rhythmic motion of trees or even grass is not unlike that of mothers who instinctively use gentle swaying motion to comfort their babies. Did you ever notice that you feel better around trees or in a rocking chair?

“The symbolism – and the substantive significance – of planting a tree has universal power in every culture and every society on Earth, and it is a way for individual men, women and children to participate in creating solutions for the environmental crisis.”

Albert Arnold “Al” Gore, Jr.
45th Vice President of the United States
Author, environmental activist,
2007 Nobel Peace Prize Winner
(born March 31, 1948)

Trees are a generous gift from nature. Humans can be generous designers as well.

Generous Design by Humans

As I describe in, The Experience Design Blueprint, generous design makes people smile. When an organization exceeds expectations without any pressure to do so, people often take notice. It might mean going beyond what is required by law or code, or even the norm set by competitors. Often the thoughtfulness goes unnoticed, but the design still serves to make things a little easier or a little better.

When you experience generous design firsthand you think to yourself, “Wow, somebody thought of that. How nice!” But, more importantly, you feel that somebody cared and as a result they touched your heart and your mind. Generous design goes beyond expectations, like a dual drinking station for humans and canines alike or a stair rail that extends a little more than required, so that it comfortably greets those about to meet the stairs. Unexpected trees alongside the built environment can be generous gifts that restore the human spirit, cause us to slow down, and even provide healing. We see and feel these in urban areas, parks, boulevards, universities, and even healthcare facilities.

Arbor Day

Arbor Day is the day dedicated annually to public tree-planting in the U.S., Australia, and other countries around the world. You needn’t be an arborist or a landscape designer to plant a tree. Even birds (or other animals) inadvertently plant trees as they eat fruit in one area and defecate in another. Animals do this without even thinking. But, you are human, perhaps even superhuman. You can be a thoughtful, generous designer and plant a tree, if not for yourself for those who will enjoy it 100 years from now.

Culture of Care

Though Arbor Day provides you an official day to be thoughtful and generous, you needn’t be gated by such holidays. Opportunities for generous design are all around us. The best thing is you don’t have to be a designer by title or role – a bird isn’t, after all. You can participate at any time, in planting a tree or other thoughtful acts that exceed expectations and turn lips upward. The Culture of Care is afoot. If you’ve already joined – thank you! If not, we hope you’ll join our movement.

about the author

Gregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and entire nations.
Gregory Olson’s latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true.

January 10, 2016

Innovation Lessons from a Runaway Toddler

By now you’ve probably heard of the 3-year-old who escaped the care of his father and went joy riding aboard his Fisher-Price Power Wheels, or equivalent, riding toy. The kid (let’s call him Martin) reportedly climbed up on a chair to unlock the front door while his father was in the bathroom. Martin then hightailed it for his little, motorized vehicle. He reportedly circumvented neighborhood eyes by staying off the main streets, cutting through backyards as he headed for the highway, US 19. After entering the busy highway, mere blocks from his home, Martin nonchalantly drove his toy vehicle alongside traffic from the safety of the median. Some observant and concerned citizens eventually stopped him and comforted him until police could arrive.

Now, our collective gator brains will immediately lay blame on the parent(s); there is no shortage of accusations floating around in comment feeds on related articles. But, I’d like to offer a different approach.

Even if you are not a leader at Fisher-Price, the maker of Power Wheels, there are many innovation lessons to be learned from this potential tragedy.

First, a specific idea related to this situation. An ignition lockout switch would be a great feature for parents to have on Fisher-Price Power Wheels (or any brand) riding toys. There could easily be a companion smartphone application. Let mom or dad enable or disable the engine via a smartphone. This would put mom and dad in control when kids are not or shouldn’t be. This common sense feature (even an upgraded feature or module) offered to parents and guardians would provide them more peace of mind and a sense of control. Not only is this idea an opportunity to improve safety, it is also an opportunity to increase revenue and brand contact with the parent, through the smartphone application.

Now for the general lessons to be gleaned from the situation:

Look outside your organization for ideas that could spawn innovation. Unforeseen things can create opportunities. Lesson number one is to be open to seeing things you may not be looking for. I’ve shared this opportunity here and elsewhere in comment threads related to the story. Are people at Fisher-Price that are concerned with the brand, product safety, or increased revenue opportunities listening? Are they sifting through various channels to hear such ideas? Time may eventually tell.

Invite future conversations that don’t fit well with the present. Let’s assume for a moment that somebody at Fisher-Price or a competitor did see this story and the opportunity. Or, maybe an employee already had the idea for the safety switch and application; now they have a real story to add more color. When new information does arise, either from the outside or inside the organization, people must know how and when to fold it into a discussion. What is the name of the meeting where new ideas are discussed? When does that happen? Where is the global suggestion box? Your innovation culture must give people the ability and confidence to champion an idea even if it looks very different. It’s still only an idea, not a commitment to change the entire business. All ideas that create value for the customer or the organization originate as ideas and those ideas can come from anywhere. If you protect the status quo you may end up on the wrong side of history.

Be wary of the limited fitness of ideas to existing initiatives. In truth, the next best idea may not fit. So, who is the chief of “things that don’t fit” within your organization? If you’re running a very lean operation (too lean perhaps) there will be nobody with the capacity to take on yet another role or champion an idea. This is true of overburdened leadership and all of those who follow. Spawn a team or position and accompanying process to periodically assess ideas whose time has not yet come. Make new ideas feel as welcome as an old friend coming for a visit.

Create capacity to explore opportunities. When an idea does hold some promise have the courage to run an experiment. There won’t be any data to support a business case before there is any data. So, build prototypes of the product, service, and even the organization to create real customer data. If the initial data looks promising, then dial up the experiment. No matter the size of your organization, you don’t have a lock on all talent. Increase your capacity and expertise by inviting others to the table. Tap outside entrepreneurs, those in coworking spaces, and small firms like my boutique strategy and design firm, Delightability. When there is not yet data have the courage to run experiments and create the data. Remember, everything large and substantial started small, even you.

As discussed in Chapter 8 of The Experience Design Blueprint, every organization has a Promise Delivery System. That is the invisible system by which an organization makes and keeps promises (or doesn’t). One component of the Promise Delivery System is Apply Learning. Sources of learning can come from insights and validation gained within the organization from its own operations, or they can be from external sources. This story was about a kid on a joyride. But, imagine all of the stories unfolding every day that organizations could use to sharpen their insights and strengthen their businesses and their brands.

about the author

Gregory Olson is the author of The Experience Design Blueprint, a book about designing better experiences and then making them come true. His latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

Gregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help. Gregory also serves as a volunteer board member for Oikocredit Northwest, a support association for social investor and financial institution, Oikocredit International.