Archive for the 'Organizations' Category

Conversations are never assembly line

Sunday, January 14th, 2007

Joseph Jaffe is one person who does a great job of building collaborative projects. After his successful book Life after the 30 Sec Spot, he has started to write a  new book - Join the conversation and has invited people to contribute. I have tried to contribute my thoughts in Chapter 10 - Why are you so afraid of conversation? Here's my take:

It is a good idea to trace this to the history and growth of organizations in the industrial age. This was the age where efficiency was the focus. Organizations were built around driving productivity. People were trained to do things over and over again - faster and quicker. For over a century, people worked in an era of mass production. Hence, they forgot the ability to develop conversations. They worked in large organizations that told them what to do rather than get them to explore what to do.

We therefore moved from

  • an era of 'inventory of goods' to an era of 'inventory of ideas'.
  • an era of 'scarcity' to an era of ' insatiable choices'
  • an era of ' information poverty' to an era of 'information overload'

Imagine the kind of shift they would have to make for this new eco-system. They had to express, share and collaborate to get prepared for such an environment. This is a new work culture altogether for them. Also, one-size-fits-all product strategy became irrelevant.

Conversation at the end of the day is two-way. Conversations require

  • A capability to accept reality as it were because that's how consumers talk amongst themselves
  • Ability to listen and respond in an unbiased manner
  • Skills to experiment,learn and develop
  • Ability to change the course of one's action swiftly, even if the decision was wrong

Hence, they were not ready for a conversation era. An environment where one has to express, empathize, engage, enable and empower. The mindset a marketer must have is not to 'inform at any cost' but 'spread at no cost'. This is a new marketing paradigm that demands new thinking, new rules and new ideas.

Open AD - The world’s biggest creative department

Saturday, January 13th, 2007

Styling itself the 'World's Biggest Creative Department', OpenAd is a relatively minor Slovenian-owned internet business with just thirty-nine staff worldwide. Yet some see it as the shape of things to come - maybe, even, the writing on the wall for traditional ad agencies.

However, OpenAd MD Katarina Skoberne stresses the venture isn't competing with agencies. She insists it simply supplements the use by clients of freelance creatives. "We are not an online ad agency, we are merely a resource of creative material," she says.

Although registered in Switzerland, OpenAd's sales and marketing arm operates out of London while the global support centre is based in Slovenia.

Membership of the exchange is free to the 5,000-plus creatives on OpenAd's register. Explains Skoberne: "Anyone who has registered as a creative supplier - and anyone can - is free to answer the brief, or not, as they choose. Clients pay an initial set membership fee to join OpenAd, then a licence fee for the ideas they use."

"This allows them to post briefs on the site and view existing ideas, paying somewhere between $3000 and $100,000 depending upon the number of pitches they want to hold, the number of categories they want to access and the number of [client] staff who have access."

Among those who have used OpenAd is UK-based charity Comic Relief. Enthuses Amanda Horton-Mastin, new media director: "Make Poverty History was a global campaign and the thing about OpenAd is that it opens the window to global ideas, even for very small clients. It was quick, it was cheap, and the idea we chose was excellent."

Another client is Emap's men's magazine FHM which has used OpenAd three times in the past two years. "We started off with one-off tactical promotions and recently asked for a full-blown branding campaign," says marketing manager Ben Cordle.

"The creative response was fantastic. It gave us access to heavyweight creative talent and saved us thousands or even tens of thousands of pounds on agency overheads."

Thro' WARC

Customer trends 2007

Sunday, December 31st, 2006

This will be my last post for the year 2006.

It's the right time to reflect on how advertising will have to adapt itself for the 2007 customer. NY Times has an article  that captures the essence of what it will look like and what marketers have to get ready for:

CONSUMERS WITH A CONSCIENCE

Consumers want to know where products come from, how they were made and what companies and brands believe in.

Consumer interest in environmentally friendly products will grow, as will interest in the local stories of products, even those that come from halfway around the world, said Marian Salzman, chief marketing officer of JWT, a WPP Group agency, and co-author of “Next Now: Trends for the Future.”

“Every brand is going to now have to have a social conscience, and they’re going to be evaluated for their social consciousness as much as for their products,” Ms. Salzman said

LIFE ONLINE OR OFFLINE?

Consumers spend so much time online — working, playing, sharing personal details with the world and living out fantasy lives — that the online terrain is blurring with the physical world.

In 2007, more companies will start adding social networking and user-generated tools onto their intranet sites, predicted Clark Kokich, worldwide president of Avenue A Razorfish, an agency owned by aQuantive.

“People in the younger work force are going to look for an experience on intranets that looks more like the experiences they have on the Internet,” Mr. Kokich said.

PUSHING THE OFF BUTTON

Even as consumers are networked in and logged on most hours of the day, some ad executives say they think workers will be quicker to separate their work lives from their personal space. Some hotels are now offering to lock up guests’ cellphones and BlackBerrys to give them a break, said Kiwa Iyobe, trend manager at Faith Popcorn’s BrainReserve.

USER-GENERATED ADVERTISEMENTS

Ad executives are not going to be quick to give up their paychecks for creating ads. Still, a growing list of brands — among them Converse, Chevrolet, Doritos and Dove — are asking consumers to design commercials for them.

“Consumers are demanding and getting a seat at the table and defining what the brand experience is about,” said Allen P. Adamson, managing director of the New York office of Landor Associates, a WPP Group brand consultancy, and author of “BrandSimple.”

WHAT’S A BRAND TO DO?

Advertising executives said brands should focus on clear, simple messages that were consistent across consumers’ online and offline lives. Companies that scored the highest in a national brand study earlier this month were ones with well-known mass appeal, like Google, Las Vegas, the N.F.L., Sony and Amazon. YouTube, iPod and Yahoo also made the list of “top brands,” though they came in a bit behind Google.

On this note, Wish you a happy new year!

Toyota Sweden starts to engage with their customers

Monday, December 25th, 2006

Toyota, Sweden has built a fantastic site.

Toyotasweden

http://demo.northkingdom.com/ihuvudetpatoyota/index_en.html

I think the asthetics of the design is just brilliant. I do have one reservation. After having created such a 'welcoming' home page, the pages linking the other pages could have been a lot more interesting.

True believers

Saturday, December 16th, 2006

Business Week has a great article on how customers can be involved and enagaged in every business, if only companies have the intent.

Passionate customers can transform your company. Here's how to make them your secret weapon:

Each week, Greg Selkoe, founder of streetwear retailer Karmaloop, and a handful of his employees gather in his office overlooking Boston Common to review new designs. The group votes on which, if any, of the T-shirts, jackets, and other clothing should be added to the line Karmaloop sells in its Newbury Street store and online.What's worth noting is that the designs are submitted by customers. Since October, 37 designs, out of about 1,000 that have been submitted, have been added to the 33-employee, $4 million company's offerings.

Selling clothing dreamt up by customers is just one facet of a business model that brings customers so far into Karmaloop's DNA that they have become, in effect, extensions of the company's sales, marketing, and product development teams. Karmaloop has an 8,000-strong army of customers who proselytize the brand and get discounts or cash when they, or someone they've referred, make a purchase. Members of this "street team," called reps, also upload images, photos, or artwork to Karmaloop's site to make company stickers or banners other reps can download. "The reps are evangelists for our site," says Selkoe. And they're doing their job: Fewer than 1% of Karmaloop's customers are reps, but their purchases and those they inspire account for 15% of sales.

CEOs have been talking about customer loyalty for years, but entrepreneurs such as Selkoe know that making people truly loyal to your company—to make them really, really like you—takes a lot more than a frequent buyer program. It means nothing less than getting people so jazzed about your brand that they become engaged contributors to your company's sales, marketing, and innovation efforts, and ultimately its success. How does that happen? By knocking down the walls between "you" and "them" and creating a larger, looser community that is inviting to both your customers and your employees.

TechSmith's Weber was such a fervent believer in the power of a customer community that three years ago she persuaded the company's president to create her chief evangelist position. She then built customer advisory panels by including customers so happy with products that they'd written "love letters" to the company over the years, as well as those she found on blogs and through customer referrals. But Weber didn't shy away from the company's critics. Among the panelists is Paul Pival, distance education librarian at the University of Calgary in Alberta, who had written on his personal blog that he found Camtasia Studio, a TechSmith product that records keystrokes and mouse movements made on a computer, slow and difficult to use. "I was surprised she sought me out," says Pival of Weber's overture. "It was a little bit gutsy, but ultimately successful." After getting involved with the company's customer panels, Pival says he realized the product had been improved.



Smashing the clock!

Monday, December 11th, 2006

On-demand customers are changing the way companies are transforming the workplace. Business Week has an interesting article on how Best Buy is responding to this challenge:

The nation's leading electronics retailer has embarked on a radical--if risky--experiment to transform a culture once known for killer hours and herd-riding bosses. The endeavor, called ROWE, for "results-only work environment," seeks to demolish decades-old business dogma that equates physical presence with productivity. The goal at Best Buy is to judge performance on output instead of hours.

Another thing about this experiment: It wasn't imposed from the top down. It began as a covert guerrilla action that spread virally and eventually became a revolution. So secret was the operation that Chief Executive Brad Anderson only learned the details two years after it began transforming his company. Such bottom-up, stealth innovation is exactly the kind of thing Anderson encourages. The Best Buy chief aims to keep innovating even when something is ostensibly working. "ROWE was an idea born and nurtured by a handful of passionate employees," he says. "It wasn't created as the result of some edict."



So bullish are Anderson and his team on the idea that they have formed a subsidiary called CultureRx, set up to help other companies go clockless. CultureRx expects to sign up at least one large client in the coming months.


Then again, the new work structure's proponents say it's helping Best Buy overcome challenges. And thanks to early successes, some of the program's harshest critics have become true believers. With gross margins on electronics under pressure, and Wal-Mart Stores Inc. (WMT ) and Target Corp. (TGT ) shouldering into Best Buy territory, the company has been moving into services, including its Geek Squad and "customer centricity" program in which salespeople act as technology counselors. But Best Buy was afflicted by stress, burnout, and high turnover. The hope was that ROWE, by freeing employees to make their own work-life decisions, could boost morale and productivity and keep the service initiative on track.



It seems to be working. Since the program's implementation, average voluntary turnover has fallen drastically, CultureRx says. Meanwhile, Best Buy notes that productivity is up an average 35% in departments that have switched to ROWE. Employee engagement, which measures employee satisfaction and is often a barometer for retention, is way up too, according to the Gallup Organization, which audits corporate cultures.



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