Customer Experience OurScore – Page 14 – Discipline makes Daring possible.

September 30, 2021

Communication, not control

Yesterday evening I watched ‘the very long and very beautiful history of technical drawing’ on the #Railnatter podcast.

Boulton and Watt’s industry disrupting atmospheric engines were the size of a house. They couldn’t be factory built and transported, there was no railway then.

Instead, the firm sent technical drawings to the customer so that local engineers could build the engine on site.

The same technical drawings enabled later, different engineers to maintain, repair, relocate and upgrade these engines. Or, back at Boulton and Watt, to design new, better engines – on paper, cheaply.

Even later, they’ve enabled modern engineers to recreate these engines for our edification and delight.

Technical drawings aren’t even only for techies. They were often used to explain complex ideas and processes to clients, funders and the wider public.

In other words, technical drawings, like musical scores, building plans and other tools we use to collaborate around are about communication, not control. The kind of communication across space and time that allows a business to scale across space and time.

How about your business? What would your technical drawings look like? Do you have them, or are they only in your (or someone else’s) head?

September 29, 2021

What is a musical score?

It’s the music the composer(s) can hear in their head(s) captured in a way that enables other musicians to play it. It allows the composer to delegate the responsibility for producing the music to others across space and time.

You could think of it as ‘management without the managers’. I have thought of it like that.

But I’ve changed my mind. I think that just like building plans, screenplays and a Customer Experience Score, it’s more like ‘leadership without the leaders’.

A musical score doesn’t say “Do this task, then this one, and this one next”. It says “Here’s where we’re going, here’s the notes we have to hit, find your own best way to hit them, together.”

Hmmm.

What do you think?

September 14, 2021

Management

Management – the co-ordination of activities executed by many people – is expensive. Managers don’t contribute directly to the bottom line, and good managers cost good money to hire. So it’s no surprise that firms around the world have been looking for a way to get rid of managers.

One solution is to automate – management by algorithm, as used by Uber, deliveroo and the like, and increasingly applied to fields such as home-care. This is hideously expensive to set up, of course, and it depends on creating an effective monopoly. Plus it effectively turns humans into mindless robots, paid accordingly.

The other solution is to devolve responsibility out and down to the front-line – radical de-centralisation, where teams on the front line manage themselves. An extreme (and very successful) example of this is Haier Industries, essentially what Corporate Rebels call ‘the biggest startup factory in the world’.

At Haier, ‘teams’ are startups, consisting of internal and external people (such as suppliers), all working to create value for customers, sharing the risks and the rewards along the way. They are monitored and supported, but not controlled. Haier doesn’t decide what will work and what won’t, the market does.

In contrast to Uber and the like, Haier has created a highly profitable solution to getting rid of managers – by creating an ecosystem that enables self-managing people to do what only humans can do – create value for other humans – supported and rewarded by systems that help them to keep growing.

In the future, there will be no managers, only management. What kind of management do you want for your business? Uber? or Haier?

I know which I’d prefer.

September 9, 2021

Innovation

When we think of innovation, we tend to think of physical or digital technologies embodied in products or apps.

Management is a technology too.

And as Michele Zanini, co-author with Gary Hamel of ‘Humanocracy‘ observed only last Friday:

“Our research suggests that the longest-lasting competitive advantages come from innovation in management systems and practices, not from business or operating model innovation. So diligently pursuing management innovation pays off handsomely.”

And the good news is that small businesses on the cusp of scaling are best placed to take advantage of this.

September 8, 2021

Founders Syndrome

I learned a new concept this morning: ‘Founder’s syndrome’. Here’s the Wikipedia definition:

The organization is strongly identified with the founder;^[8] and a result sometimes believed to be related to the founder’s ego.^[9]^[10]^[11]
Obsessive leadership style compared to a more standard behavior.^[12]^[13]^[14]
Autocratic decision-making (autocratic management style): Founders tend to make all decisions in early start-up companies, big and small, without a formal process or feedback from others. Decisions are made in crisis mode, with little forward planning. Staff meetings are held generally to rally the troops, get status reports, and assign tasks. There is little meaningful strategic development, or shared executive agreement on objectives with limited or a complete lack of professional development. Typically, there is little organizational infrastructure in place, and what is there is not used correctly.^[11] Furthermore, the founder has difficulty making decisions that benefit the organization because of their affiliation.^[10]
Higher levels of micromanagement by checking on employees or colleagues subject matter work instead of maintaining and evolving the overall company’s picture.^[15]
Entrepreneurs show higher levels of bias (e.g. overconfidence) than do managers in established organizations.^[16]^[17]
There is no succession plan.^[11]
A failing so-called leadership transition^[18] within first couple of years leading to consequences such as trust, moral, unforeseen future for the business.^[19]^[20]
The founder has difficulty with adapting to changes as the organization matures.^[10]
The culture of the leadership team and company plays an important role for success or failure.^[21]^[22]
Often the founder’s idea is central to the initial business and clients of the company, so that if markets change, the need for the initial idea might vanish.^[23]
Key staff and board members are typically selected by the founder and are often friends and colleagues of the founder. Their role is to support the founder, rather than to lead the mission. Staff may be chosen due to their personal loyalty to the founder rather than skills, organizational fit, or experience. Board members may be under-qualified, under-informed or intimidated and will typically be unable to answer basic questions without checking first.^[24]
Professionally trained and talented recruits, often recruited to resolve difficulties in the organization, find that they are not able to contribute in an effective and professional way.^[24]
The founder begins to believe their own press/PR and other marketing related issues.^[25]
The founder, who is usually the CEO or managing director, suffers HiPPO (Highest-paid-person’s opinion), which means that often their ideas, decisions, etc. keep winning over the actual better ideas, decisions, etc.^[26]^[27]
The founder becomes increasingly paranoid as delegation is required, or business management needs are greater than their training or experience.
Falling into two traps:^[28]
- Actions without a goal or
- Wrong actions based on defined goal

The founder responds to increasingly challenging issues by accentuating the above, leading to further difficulties.^[29] Anyone who challenges this cycle will be treated as a disruptive influence and will be ignored, ridiculed or removed. The working environment will be increasingly difficult with decreasing trust. The organization becomes increasingly reactive, rather than proactive. Alternatively, the founder or the board may recognize the issue and take effective action.^[30]

A lot of this looks to me like the classic painful transition from one-person-band, to few-person-band, to full-blown company. Which is really the transition from a small, personal, human-scaled business to a large, impersonal capitalist corporation. The founder wants to keep things personal and true to their original vision. New owners or new management want to make things efficient, corporate and therefore impersonal. As far as the founder is concerned, they want to make it ‘someone else’s business‘. Of course the founder resists.

There is a preventive for ‘Founder’s syndrome’.

Embed the founding vision and personality into the operating processes of your business before you try to scale, with a Customer Experience Score. You’ll be able to scale without managers, even without investors other than the people you serve. The best of both worlds: personal, true to the original vision and magnifying your impact.

Even better, once it’s built into the way your business works, your Score takes on a life of it’s own, nurtured and improved by everyone in the business. It becomes harder for anyone to interfere – even you.

September 7, 2021

Design your business or it will be designed for you

“Design your business or it will be designed for you.” It’s one of my favourite sayings, spoken by Brian Chesky of AirBnB.

But what does it actually mean? How can others design your business for you, when you’re the boss?

When you started out as a one-person band, you did everything. You tried different things to market and sell your services, and to deliver them in such a way that customers came back, or told their friends. You designed the business.

Once demand grows beyond what you can personally deliver, you have to add capacity. And every time you do that, you bring in someone else’s idea and experience of what a business looks like.

You might add capacity by automating some of what you do with software. That job management software, quote generator or CRM tool was designed by someone else, according to their vision of what a business is and how a business works. A vision that is necessarily generic, otherwise they couldn’t sell enough to be viable.

You might outsource some of what you do, your accounts, or your HR for example. Your accountant or sales agent will have their own idea of what a business is and how it works. If they’re any good they’ll try to find out more about yours, but often they’ll fall back on a generic design to fit all industries, or a design learned working elsewhere, or their own design. It’s not your area of expertise, so even though you don’t love it, you put up with it.

You might work with other small businesses like yourself, sub-contracting some of the delivery. But like yourself, they will have designed their own small business, and that design probably won’t match yours. That can prove exasperating and stressful, unless you decide it doesn’t matter that much, and accept the differences.

You might recruit a business partner, co-director, manager or experienced staff to take on some of the work you do. Almost certainly you’ll want them to have experience of business in general and your industry in particular. In other words, they’ll bring with them the design of those other businesses they’ve worked in, plus their own ideas of how to do things. If you’re very lucky, those ideas will chime with yours. If you’re not, you’ll be fighting to maintain your business design, or running through several cycles before you find ‘the right person’.

You might recruit juniors, school-leavers or graduates even, who you can ‘mould’ to suit your business design. But moulding takes time, and even they will have their own ideas of how things should be done. They need almost constant supervision and just don’t seem to get it.

You might hire a business coach or consultant to help you deal with all these problems. They too, come with baggage of what a business ‘should’ look like, learned at the Bank, or at business school, or from building their own successful businesses. They will try and shape your business to fit.

In the face of all this, you have a choice. You can supervise closely, re-do work, fight to correct what everyone else is doing ‘wrong’, or you can accept other people’s designs for your business. The first is exhausting, the second feels like it’s not your business any more.

There’s a step you can take, which can solve all of these potential problems before they happen, which is to take your business design out of your head and get it down as a shareable ‘blueprint’ everyone can work from. The Customer Experience Score for your business. That captures your unique way of making and keeping promises to the people you serve.

Your Score becomes a specification for software, an operations manual for new staff, suppliers and contractors at all levels. Above all it becomes a permanent record of your design for your business, that enables your unique creation to scale, evolve and persist through time.

Design your business, or sooner or later, you’ll be back to working in someone else’s business.

August 24, 2021

Structuring emergence

The problem with a hierarchical management structure, is that it’s expensive – adding layers of overhead and transaction costs that have to be carried by the revenue-generating part of the business. Even worse, it encourages everyone working within it to focus on the wrong thing – their immediate boss. And that makes work miserable for many, especially those at the bottom of the pyramid.

Alternatives to hierarchy, such as holacracy, co-operation and teal address this by delegating much of the management and decision-making to the people at the coal-face – no longer the bottom, but the cutting edge, where the business meets its customers.

This doesn’t reduce overhead that much because in effect, as Dr Julian Birkenshaw of London Business School observes, these structures “replace a vertical bureaucracy with a horizontal one”. Considerable interaction costs remain as people collaborate and generate consent to create emergent actions. But at least the focus is where it matters, on the customer, client or stakeholder.

It seems to me that what’s really needed is both structure and emergence. A structure that takes the thinking out of doing the right thing most of the time, but allows for emergence at the edges to respond to exceptions and to evolve. The main thing is that both the core structure and the processes for emergence are focused on the same thing – the customer, client or stakeholder.

By now, you know all about my core structure:

Even hierachy works better around this. Replace that with holacracy, co-operation, teal or responsible autonomy, and your business will fly.

Discipline makes Daring possible.

August 20, 2021

Pattern Books

One of the things that put good housing within reach of ordinary people was the pattern book.

Instead of designing and building each house from scratch, an architect could design a basic pattern with variations that any local builder could construct. The first owners could even personalise their home by choosing features from a list – a parquet floor here, a bay window there, a different bedroom layout.

The result was our typical suburbs, from Hampstead Garden Village through to Metroland and beyond. Houses that are enough like each other to give a pleasing sense of uniformity and rhythm, but different enough in their details to be lively.

You are the architect of your business. What if, instead of building each customer experience from scratch, you created a pattern book that your team can start from, and clients can adjust to suit their tastes?

August 16, 2021

Chippendale

In the pre-industrial age, the only way to grow your business was through apprenticeships. Teaching aspiring masters everything you knew one-to-one, or one-to-few.

Once they had mastered their craft those apprentices went off and repeated the process in their own workshops. A few might stay with you if you could get enough work to employ them.

The downside for customers was that everyone tended to make the same, tried and tested stuff for the same local customers. If you wanted to make your mark by producing something different, it was impossible to grow fast enough to keep up with demand.

Thomas Chippendale knew what his gentleman customers in London wanted. He knew that there were similar markets in towns and cities across the country. He couldn’t serve those markets himself, but he could enable other cabinetmakers to do so – with a pattern book that could be sold to both cabinetmakers and gentlemen.

The pattern book specifies the end product – what it should look like, dimensions, some key details. Chippendale knew that of course any master cabinetmaker would know how to construct the pieces. He didn’t need to tell them that.

The result is that each piece produced from the pattern book reflects the skills of the cabinetmaker who used the pattern as inspiration, tailored to the sensibilities of their local gentlemen customer.

‘Chippendale’, but not by Chippendale. A halfway house between handcrafted and factory-made.

Not a bad way to scale your unique approach.

August 9, 2021

Less is more

Have you ever stood in front of sweet counter full of chocolate bars? Or a wall-full of 500 pizza choices. And walked away empty-handed after a few minutes, because you couldn’t decide which to choose?

As Sheena Iyengar and her co-researchers discovered, too many choices actually makes it harder to choose something over nothing.

In a well-known experiment in a store that was famous for the extensiveness of its range, they set up a tasting station for jam. Every half an hour the choices available to taste switched from 6 jars, to 24 and back again.

More people looked and tasted when there were 24 jams to choose from. But 6 times as many people bought when there were only 4.

The lesson for packaging your Promise?

If you want people to notice you, have lots of choice. If you want them to buy, don’t make them work so hard. They’ll probably give up.