Gut & Data: Two sources of direction

This post is inspired by a wonderful quote from Duncan Watts, of Yahoo Research, made on this McKinsey Quarterly podcast (May 2011):

“Our enthusiasm for making predictions is matched only by our reluctance to be held accountable for them.”

While difficult to do in a corporate environment, as Duncan Watts rightly suggests, the chances are that the act of tracking and publishing predictions would help foster an air of accountability and, thus, could be extremely transformative for the enterprise.

Intuitive leadership

Missing data?

This interview got me thinking about the role of the gut and instinct in enterprise.  Not only does acting on instinct require a fine ability to listen to oneself, it takes wonderful words of persuasion to galvanize support around your intuition and gut prediction.  Think of Steve Jobs’ ability to conjure up a gut idea and push it through the system.  In my experience at L’Oréal, I think back to the strong and masterful impulsions given by CEO, Lindsay Owen-Jones.  Predicting consumer behavior without holding the person responsible for those gut predictions, however, is akin to wasting money; yet, it is still a very common practice.  Public companies must bear their counts to the shareholder.   Companies that promote “intuitive leadership” are less prone to decision-making via “statistics” and vice versa.  It would be my belief that there is a place for both; however, with the general availability of numbers on the web, will that always be the case?

Digital Marketing run by Data?

It is quite true that you can make numbers say anything you want.  I personally saw the effects of poorly framed surveys and, worse, wrongfully gained insights from consumer roundtables (gained through rose tinted glasses).  The glory of the online digital marketing world is that numbers exist by the score.  Online, there are now many ways to track data — it seems unfathomable that companies are not using the data better.  Data driven marketing (e.g. “bucket testing”) and crowd-sourced innovation are marvelous tools, yet seemingly at loggerheads with the intuitive marketer.

Can both lie comfortably within a single organization?

Personally, I feel that intuition is a hugely important arm.  You need to be able to act with a certain degree of spontaneity, otherwise analysis paralysis can set in.  In today’s “speedy” world where things ought to happen and decisions need to be taken in “real time,” it is vital to be able to streamline the decision making process.  People need to feel empowered to act on their own.  On the other hand, it seems equally important to access and utilize the masses of data that are easily available.  Is this another case of promoting a balanced right brain/left brain approach to marketing and leadership, in general (cf Daniel Pink’s A Whole New Mind)?

I’d love to hear your thoughts!

It still takes time to save time…

Below is the first of a “thread” on the five best productivity enhancing tools that I use on a regular basis.  What I find is as important as the specific tool itself is the selection of the category for these tools.  In each case, I will write up the notion of the category as well as the tool itself.  A word of caution: these tools can help, but you need time to save time as it takes some effort to set them up.  Knowing yourself, your weaknesses and, most importantly, where you want to go (i.e. your objectives), are probably the best productivity winners.  You will note that many of these tools are cloud-based… part of the new world order.  So, here is the first one:

Managing your files:

Most of your files are typically saved on your main desktop or laptop.  They are stashed in folders and sub-folders, in an array of spreadsheets, word documents and the like.  Some are backups, some are rough copies, many need to be used/shared with other team members.  Keeping track of where they are on your desktop is a challenge in itself, much less when you have to work in multiple places, on multiple computers with multiple other people.  To have one’s most important digital files synchronized and available from any port (laptop, iphone, ipad or someone else’s computer), is absolutely vital (at least for me).  It is also a perfect tool for those who work in distributed offices.

 

Just drop it the cloud...

The solution : Dropbox

Dropbox is extremely versatile, allowing you to share specified files with other partners as you see fit.  The free version is ample for amateur usage.  Membership is free and allows up to 2GB of storage “in the cloud.”  One great aspect of Dropbox is the History section, which, when being used across many people, allows you to see who has done what.  You also have a fabulous way to find backup or archived versions.  Caveat: You need to be careful about the naming devices (especially when you are renaming) that can throw your files out of whack (for everyone with whom you are sharing the file). PS: A distant second alternative is Google Docs.

Another caveat: the files that uploaded on the free version officially belong to Dropbox.  But, I have no reason to believe they will have an inappropriate usage of the data.

Getting social must be a company-wide project

As companies scramble to identify or hire community managers, I often wonder about the criteria that are being drawn up.  There is still much confusion on the role of the community manager.  More emphatically, though, I wonder to what extent that community manager has been empowered to create a personal dialogue with customers.  The trick is trying to balance the return on investment with the time it takes to create, learn and engage as an organization.  Community management is [almost] as much about managing your internal community as the community that is your client base.  Consequently, the profile of the CM must be in adequation with company culture, able to negotiate through the silos, for example, if such exist.  The brand and its senior management need to establish a singular objective around which the organization must rally.

Relearning how to learn

Finding the subject, creating the right tonality and figuring out the right level of interaction is a learning process.  This is why outsourcing community management to an agency is a dangerous, not to mention ineffective, option.  You don’t capture the learning.  Learning organizations that are truly centered around their clients, have a culture of adaptation, flexibility and agility will figure out the path quickest.  In the absence of such an environment, my experience shows that success in the social media strategy will be difficult to master.

G&Os, KPIs & ROIs must be intereSTING

put the sting back into interesting

One of the key stumbling blocks continues to be the measurement stick.  There are two parts to this challenge.  The measurement and the stick.  Identifying the right KPI’s requires the singleness of mind to be focused on a particular objective — not to try to do all things for all people.  With a strong objective in place, one can establish a clearer dashboard, that does not encourage analysis paralysis.  Secondly, the stick.  It is important that the goals & objectives of the individual community manager be crafted in a way to encourage a qualitative approach, far more than a quantitative approach. Buying audience (adwords, email lists, etc.) or spewing out uninteresting content (ie content farmers) is not a viable recipe.  It is less about the quantity of followers, friends or even likes, but the quality of those retweeting and liking articles/content to their engaged audience. This is what I would term as putting some STING* into your content.  If your content is interesting and distributed in an intelligent manner, then the engagement will surely follow.

Interest versus goal

One key thought that I heard a while back which I would like to share with you is to configure your social media strategy around an interest rather than on goals. What does this entail?  It means knowing who and where your clients are, understanding their needs and then having people within your organization who are naturally, legitimately and inherently passionate about that interest.  This is what will put some STING into your conversation.  Then you are sure to gain traction over time and the sought-after numbers will come.

*I mean sting as in bite, asperity, true “interest”.

Getting the mindset right first

Enterprise 2.0 - A State of Mind

We all know resources are limited, so it is essential to know to prioritize.  In this vein, one of the conundrums facing companies is to know whether they should focus first on their external social media marketing strategy (to get the business) or whether they should start internally, to implement “enterprise 2.0″ tools*.

While business short-term pressures might push us to start with the external social media strategy, I would argue that one ought first to establish a successful internal collaborative “2.0″ strategy and mindset. There are three vital reasons for this.

1. Agility.  While we might be lured by the opportunity to recruit new clients and capture new business via social media marketing and social commerce, being able to work smarter and faster (for example, for the all-important innovation cycle and time to market), these new collaborative “web 2.0″ tools help to spark the necessary transformation.  They are just tools, granted, but they require people to break their old “1.0″ habits: storing and guarding information, slow responsiveness, working in silos, hidden expertises, and worst of all, being me-focused.  [And, I might add that a good place to start, is making sure that telephone calls and emails are answered in a timely fashion as I wrote about in this post, Are We There Yet?]
2. Coherence.   As much for purposes of clarity and strength of message, coherence from inside-out is absolutely vital for another reason.  The employee’s engagement in social media — whether internally or externally — is critical.  I like to say that [company] politics is the inertia that comes from a gap between what is said and what is done.  From a customer standpoint, this is considered failure to deliver.  From a company standpoint, it is failure to execute.  From an employee perspective, it is disrespectful.  It is no longer advisable to have dissonance between Corporate communication, the employer brand message and the external commercial strategy.  These three messages need to be aligned–of course, this does not mean that they need to be the same.  Brand marketers are having to learn to be more transparent in communicating to customers [in real time] about the truth in eco-friendliness, brand ethics and health & safety.  The same must go for the internal communications.
3. Effectiveness.  Last and by no means least, the effectiveness of an external social media strategy will thoroughly depend on the engagement and adeptness of the internal teams.  In order for employees to be fully committed and engaged, they need to “feel” and live the experience.  Otherwise, the message will start to sound to customers to be hollow, unauthentic and, ultimately, uninviting.  Moreover, I firmly believe that the full participation of every level of the organization in one’s social media marketing is, ultimately, the best stance.  However, there is no alternative to experience in social media.  People need to practice, experiment, learn (and accept to trip up on occasion).  Policies and protocols certainly need to be established (according to corporate cultures).  Doing that experimentation internally is less dangerous than on the outside.

In the end, it is difficult to know when and how to launch these web 2.0 tools internally — and there is no telling that the external social media marketing and/or social commerce strategies will work.  The path is going to be wonky.  The tools are indeed different, but the mindset for succeeding in a social media strategy and Enterprise 2.0, is inalienably linked.

I welcome your thoughts!

*For the sake of this article, I have used the term “enterprise 2.0″ to represent the use of collaborative tools inside the workplace (with employees, partners and suppliers) as opposed to the ‘external’ social media marketing.  Technically, Enterprise 2.0 can encompass social media marketing as well.

Attended a most interesting INSEAD breakfast presentation last week by François Momboisse, President since 2002 of the FEVAD (the association covering eCommerce and distance selling in France).  François is also head of international digital operations for the FNAC (a leading retailer of high tech and cultural goods).  Herewith a little state of the e-business in France.

90 euros average basket in France

eCommerce in France which has lagged most of the “developed” countries in Europe has been in catchup mode for the last several years.  Despite a moribund economy, eCommerce (as measured by the FEVAD) reached 25€ billion in 2009, up 25%.  In the 2Q of 2010, eCommerce grew 28% in France and is projected to grow overall a further 24% in 2010.  Still, eCommerce in France remains half the size of that in the UK.  That said, eCommerce constitutes 13% of total sales for businesses in France (excluding finance sector) compared with the European Union average of 12%*; and it represents 4.5% of retailers’ business in France.  If France is still lagging somewhat in terms of internet penetration at 63% of households, 71% of these purchased on line in 2009, well above the EU average of 57%.

Among François’ comments on eCommerce in France, here are the key thoughts:

• French internet users have a high degree of confidence in eCommerce (62%) and a very high level of satisfaction (97.7%) — presumably led by the extremely rigorous Amazon (which lies #4 in France in total e-sales).
• The number of eCommerce sites has mushroomed, now numbering a total of 70,200, +29% in the last 12 months.  In other words, it is not just the major players who have opened up to eCommerce, but smaller companies who are getting into the fray.  Also, this means that the growth in eComm is not just organic.


Local players dominate eComm

• Other than eBay and Amazon, the 15 top players in France are local.  And the same is generally true throughout the developed countries (other than smaller countries such as Ireland, Austria, Belgium that are surrounded by bigger countries with a shared language).
• Together, England, Germany and France represent 50% of the total eCommerce business in Europe.
• Just as in the brick & mortar world, to succeed, eCommerce sites ought “to stand for something” — define one’s position clearly.
• Fraud represents 0.26% of the transactions in France (versus 0.4% in England).
• Rate of returns is not publicly shared, but François mentioned that in Germany there is a historical reason why returns are much higher, relating to the post-WWII environment where the government encouraged distance selling and a lax returns policy to overcome the lack of physical stores that had been destroyed in the war.
• Google has beta launched Google Products, its own price comparison site, which has just this week been launched in France and is likely to cause a major risk for existing local price comparison sites.

With my eye on sustainable development, I was quite surprised to see, according to a 2007 study by Estia/Fevad, the figure of 800,000 tons of CO2 equivalent saved over the course of a year by consumers making their purchases on line (as opposed to driving to the store themselves, etc.).   It would require 54,500 hectares (134K acres) of forest to absorb that CO2 which represents about half the size of the moors of Dartmoor (for those of you living in England) and, ironically, happens to be exactly the amount of land owned by Prince Charles around 23 countries in the world.

If eCommerce is growing rapidly, it is not necessarily a profitable venture.  To begin with, to succeed, logistics are absolutely vital.  With Amazon blazing forward and setting the industry bar very high in terms of customer support and service, I can see many companies falling into the trap of eCommerce, believing it represents the eldorado to compensate for the business ills.  However, it is a very exacting business to implement and requires a strong mobilisation of the entire company to get right.  Companies that know how to manage well customer service in the brick & mortar retail environment will have a better chance to creating a successful eCommerce.  The other way round is much more risky.   With the outsourced models (via Amazon or eBay), there are easy ways to get started.  But, a successful and profitable eCommerce site is easier said than done.

*Eurostat community study on new technologies, 2009

To grow organically or via acquisition?  This is a perennial question by many company in many industries.  In the world of the internet, as we remain in the “early days” — to the extent that most internet players are still not making money — it is as yet premature for most sectors to think of acquisition as a main strategy.  This does not apply to the Googles of the world, nor those backed by big money or who are owned by an ongoing concern.  That said, I thought I might take a look at two interesting opposing models in two different segments where the question is absolutely central to their strategies.

Craigslist and OLX – The classifieds online.

Peace & Love & Ads

Craigslist (CL), which was founded by Craig Newmark in 1995 and incorporated in 1999, took the local San Francisco market, literally, with a group hug;  and it has gradually created a virtual ‘peace & love’ community spread out over more than 50 countries in 5 languages.  With an Alexa ranking of 32 (#10 in USA), the site is well ingrained in North America and in North American ex-pat communities around the world.  Ownership is private and total revenues remain quite vague.  It is believed Craigslist was bringing in $10-20 million in 2005 and 2006, but that they may have earned $150 million in 2007 (according to WSJ via Wikipedia source) and are projected (by AIM Group via Kelsey Group)  to pull in $122 million in 2010.   Nonetheless, Craigslist seems content to grow slowly, organically — essentially by word of mouth; and the time spent on CL by users remains quite steady and loyal at 14 minutes. The company has an anti-capitalistic feel to it, driven by its founder, which may very well be why people like and trust Craigslist.  [The same could be said of why people followed the Grateful Dead.]  The feeling is transported across boundaries — even with a rather unwieldy English sounding name.  Fitting the profile to a tee, we have personally transacted on Craigslist in three countries and each time we have had nothing but positive experiences.   [One sticky point for Craiglist's future is the 20-25% stake owned by eBay which has been suing Craigslist to try to maintain the value of its holding.]

 

Oh Love Exchanging

OLX.com (online exchange), founded by Fabrice Grinda* and Alec Oxenford in 2006, has set out as a competitor to Craigslist — although not necessarily head on.  OLX’s strategy has been to target markets outside North America and to grow via acquisition, purchasing 8 different local players (especially BRIC-M countries), thereby acquiring local talent and market share.  Like Craigslist, OLX is privately held and numbers are not publicly available (official press release here).  A read on Alexa (which, granted, does not provide a totally accurate picture), shows that OLX.com is not strong in the US (2596th) and that the key countries are URL-specific.  Yet, with over 130 million unique visitors every month aggregated on all its different sites, OLX is no small fry**.  I note, however, that user time spent is just 3 minutes on average on olx.com, while it is 10 minutes on olx.pt, for example.  With 98.5% of its traffic coming from outside the US (versus 6% for Craigslist, OLX has the advantage of being truly worldwide in scope, and is available in 90+ countries and in 41 languages.  Per Fabrice Grinda, “I believe there is only really room for one player per market… creating a natural monopoly.”  One market, one player and OLX plans to be that player outside of North America.  Nonetheless, for OLX, the key will be developing backoffice synergies (c. 160 employees) and leveraging its expertise and marketing clout to grow the local players into dominant forces.  Presumably, there are also the benefits of learning from the acquirees and bringing those learnings back into the fold.

Baseline:  First, Craigslist is clearly winning the battle in North America, because of its early mover status.  Secondly, Craigslist is more niche in its orientation, in that it has a devoted user base with a strong notion of a community of shared values, which you can find wherever you conduct business on CL.  OLX is strong in a certain set of countries (i.e. Portugal, Spain, Brazil, Argentina, Pakistan…), but is spread out thinly and, to my mind, will need to be very controlled in its economic model to support the acquisition strategy.  If someone is up to that task, it would certainly be Fabrice.  Even if there may only be room for one player per market, nonetheless, there is definitely room for at least two players to cover the world!

Linkedin and Viadeo —  Freemium Professional Social Networking.

Top executives are IN the house

Linkedin (LI), founded by Reid Hoffman and launched in May 2003, is the recognized dominant professional social network, boasting a 24 Alexa ranking worldwide (14 in US and 65 in France).  With more than 75 million members across 200 countries, Linkedin has a strong community that, you get the feeling, shares a common set of values.  I like to think of it as the Business Class lounge mentality — wherever you go, the manners are more or less the same, reflecting the higher level of cadre that constitutes its user base.  In terms of languages, Linkedin is available in 6 languages, with English being the dominant “business” language.  Time spent is a strong 7 1/2 minutes on average.  Based on the Sequoia Capital investment in 2008, LI has a valuation of $1 billion, although the NYPPEX increased that valuation by 25%.  Revenues which were rather anemic through 2008 ($17 million) are now estimated (via NYPPEX, as reported in WSJ) to be $205 million.  With a puny 0.5% conversion of its members to the paying subscription, meanwhile, LI still has plenty of room for growth.

A multilocal network

Viadeo, which was launched by French entrepreneur Dan Serfaty in 2004, now has 32 million members.  A quick read on Alexa shows that Viadeo is well behind LI: #1045 worldwide, #8458 in US, but #56 in France (4 million members).  Time spent by users is a solid 5.5 minutes on average.  If Viadeo is basically unknown in the US, it purchased a strong player, UNYK, in Canada and has been targetting Europe and the developing countries (particularly India and China), acquiring several local players along the way.  Like Linkedin, Viadeo is offered in a relatively limited number of languages (6) — but has the upper hand in terms of penetration in certain countries via its key acquisitions.  It is said to be gaining 1 million new users throughout the world every month.  Different from Linkedin which typically attracts a higher level of management, Viadeo strives to garner a lower/middle management profile — the “feet on the street” as Dan Serfaty, CEO, likes to say.  One of the keys for Viadeo is that it has managed to get an 8% conversion rate of its members into a paying subscription.  According to Ferris, revenues hit $40 million in 2009 — although I have reason to believe that might yet be a little exaggerated.  Xing, the German counterpart (and third recognized competitor) that has built up a global membership of nearly 10 million, announced in August (2010) revenues of just under 26 million euros, up 20%; thus, one can imagine that the management at LI and Viadeo are also honing in on the key sales drivers.

Baseline : Linkedin and Viadeo are both exclusively professional and, as such, are playing with a very important crowd.  With very different positioning and growth strategies, it is quite possible that there is room for both.  According to Dan Serfaty, whom I met at an INSEAD conference this past week, the future may involve some kind of meta-model, akin to the roaming revenue sharing by the mobile operators, whereby all profiles (i.e. from both networks) will be regrouped together for purposes of search.

OVERALL,

I see with Linkedin and Craigslist an organic growth model allowing for a more homogeneous type of community build.  Both LI and CL have the first mover advantage and have chosen to pursue a strategy of organic growth.  The challengers (and ‘late comers’), Viadeo and OLX, have opted for growth via acquisition and both are focusing on a local and differentiated product.  In a head-on-head clash, one of the key success factors will surely ride on the quality of the product — does the challenger provide a superior experience?  In all cases, the parties will need to keep apace with the changing ‘social’ environments and technological advancements.  Both challengers are well positioned to capture the local market based on their core business model.  However, both are going to need a razor-edge approach to their finances in that they will need to amortize/optimize their investments in the local players.  Acquisition as a vehicle for growth can only go so far, in that organic growth remains the true signal of success.

While the fight between OLX and Craigslist is more head-to-head in that they are looking at exactly the same markets in the countries in which they do business, to-date, the battle is not head on in any country as yet.  Viadeo and Linkedin benefit, at least for now, from having very different membership bases.  As Fabrice said to me in a conversation on this topic, Viadeo and Linkedin are very much social networks and will need to harness the social power which is not the case for CL nor OLX, which are dealing with eminently local markets, trading and advertising among geographically tight communities.  Personally, I could see the “social” component still play a role in the Classifieds area.  All the same, it certainly seems easier to understand the economic model of the classifieds versus the social networks.  A tale of two different models.  It will be most interesting to see how both these battles play out.

Ironically, I note that both the “organic” companies are American born and bred, while the “acquisitive” companies are owned and run by Frenchmen.  Does that mean it is a trend?  Far from it, particularly since Fabrice has been living in the US since the early 1990s and Dan is now based in San Francisco (since this summer).

What do you think?  I welcome your comments and thoughts.  Can you suggest other segments where the same battle plan is playing out?

—————–

*In full disclosure, Fabrice is a cousin via marriage.

** OLX’s major sites:  Portugal: www.olx.pt; Spain: www.mundoanuncio.com; Mexico: www.olx.com.mx; Brazil: www.olx.com.br; Russia: www.olx.ru; China: www.edeng.cn

How does a small business figure out its internet strategy without the services of a big agency?  This is the typical question for the owner of (very) small business.  The internet is daunting for many, but not for all, especially if you are an optimist at heart and are willing to experiment as is Mrs. Françoise Lahaye, this engaged woman entrepreneur I met recently.

Ranch des Lacs in the heart of the Limousin

After a family holiday at Le Ranch Des Lacs, a cute little B&B out in the hicks of the Haute Vienne, Limousin (87),  I had time to discuss with Françoise Lahaye, the owner, about her marketing strategy and, more specifically, her digital strategy.  Even for a smalltime business, the biggest question is no longer IF or WHY they should be on the Internet; the question now is WHAT, HOW and HOW MUCH.  The biggest issue for her is that the choices are just too vast for the small business. Which is the right platform, the best bang for the time spent (not just the buck)?  She spends an impressive 2 hours per day on the PC.

The way I see it, Mrs Lahaye’s strategy can be broken down into three parts: (1) she works with one webmaster for her website for four years and then goes back out to competition.  (2) She experiments willingly on other sites, letting her curiosity work its magic on the internet.  (3) She believes in the Internet — she began her site in 1996 — and understands that [hard] work will pay off over time.

For this particular spot, Le Ranch des Lacs, which was opened in 1994, their internet site is well referenced with the top 3 results on Google for “Ranch des Lacs”.  They are on TripAdvisor, Facebook and Twitter as well as a number of other social sites for restaurants (e.g. directoresto.fr) and have a virtual Guest Book with 31 inscriptions to-date.  Kudos already for this.  As for initiative on Facebook and the other sites, I was particularly impressed that she accepted that FB may yet be ephemeral; yet she has invested time in creating a fan page and continues to provide status updates.  As she says, there is little to lose in doing for her.  (a) it is [still] free; (b) it is wildly popular and international; (c) it has a participative platform allowing her to keep a beat on the pulse. Moreover, if FB were to disappear, it would not be massively worse than the ephemeral nature of a 30-second radio ad or an ad in GEO magazine — although there is the question of losing your hard-built community.

Ranch Des Lacs Hotel & Restaurant

With the mainstreaming of geo-Localisation services such as TellMeWhere (DisMoiOu in French) and Foursquare (and Facebook Places tomorrow), the Ranch des Lacs is now plugged in there as well.

What is going to make for the success of a small business online are three things:

• A solid mix between offline and online communication — Mrs Lahaye’s marketing spend is approximately 50-50% at this point, and continues to move online which is an aggressive benchmark for other SMBs.
• An appetite to stay up with the new trends. The world of the Internet continues to change at a fast pace.  As Mrs Lahaye says, she puts her curiousity to good work by surfing around to figure out what is going on, not just on the internet, but in her region as well.
• A quest for client satisfaction. To the extent the web allows customers to speak out about their experience, the better the service the more likely the favourable buzz will take hold.

Smaller companies can indeed find ways to carve out an audience and make their impression on the net.  Mrs Lahaye’s efforts will surely pay off, particularly since Le Ranch des Lacs provides a particularly good service and value for money.  In the end of the day, good business is good for business.

How often have you attended a training seminar and left thinking “that was great… but was it really worth it?”  In my experience, here is, broadly, what happens in a typical 2-day off-site seminar:

Your Seminar Setting

Much harried and run down from an exhausting Quarter, and despite having got up before the birds, you are thrilled to be driving to an off-site training seminar, some 2 1/2 hour drive away.  The seminar is being held in a prestigious and beautiful location.  The training session starts late and slowly as a couple of the trainees roll in confused having come from various far-off destinations.  Once inside the training room, the tennis court and golf course, emblazoned by sun, stare at you through the window, and the spa, which is signposted everywhere in the hotel, seems to be there just to spite you.  The only way you will be able to squeeze in a much needed massage is by cutting into your already shortened sleep by taking the 7am slot.  The first day does not end on time as the trainer tries to download all the promised knowledge and more and to make up for the late beginning.  Having sat on a chair all day long, there’s barely enough time to go to the room for a quick change of clothing, before you hustle back downstairs for a cocktail/dinner.  The night ends later than you had expected as you take one drink too many, catching up on some gossip.  The following morning, it is harder than you wish to get up.  Breakfast is short.  Coffee is flowing liberally. The training recommences at 8:30am and, before you know it, it is 4pm and some of the long-distance travellers need to start taking off.  You check out and bid your adieus.  It is at this point, as you are driving back home that you ask yourself, “that was great stuff, but what did I actually get out of it?”

Bla bla bla

What exactly is a training seminar for?

What if we actually reconsidered the benefits of a training seminar around a different set of expectations and outcomes. What would those benefits look like?

Done well, a training session is a great opportunity to create contact, share values, re-energize the batteries, build community and networks, share experiences, hone expertise and learn by doing.  However, all too often, the power of the 2-day offsite training dissipates into the horizon as fast as you accelerate away from the tree-lined driveway of that divine hotel destination.  And, yet, the opportunity to make the experience and the benefits last longer are now truly at our fingertips in the form of distance or blended learning.¹

What needs to happen to improve the ROI of a training session?

1. Create a before, during and after, such that the seminar has a longer and more meaningful impact. This can involve ideas ranging from setting up an online group or space ahead of the seminar with critical information and blended learning modules (especially useful for leveling of knowledge).  Why not also start the trainees getting to do some work together in advance of the seminar.  During the seminar, training can be supplemented, for example, by some serious games² or simulations.  In terms of an “after,” aside from creating an ongoing blended component to the learning, you can create, for example, a wiki ‘sum up’ page which encourages all the participants to collaborate around a recap of key points learned.

Extend the Reach and Connection

2. Savour the silence and make difficult choices upfront. Just like the power of silence in a speech, high impact training takes silence and breaks to help the learning sink in.  Too often, there is not enough time to network effectively, not to mention to enjoy the hotel amenities, removing all the motivational aspects of the deluxe surroundings.  Trying to say it all and to cram in too much is just not effective.  Too much information kills the information — and in today’s over-informed society, it is not about the amount of information, but the right information (and source) that is truly vital.  Choosing what NOT to cover is strategic as it allows for deeper penetration of the remaining material. Moreover, with longer gaps, trainees are better able to absorb the information, digesting it over a cup of coffee and, perhaps, in mulling it over with some colleagues. Some ideas: create lengthier breaks, make the ‘coffee zone’  as loungy as possible.

3. Learn by doing.  The problem with “doing” is that it takes time and, too often, trainers misjudge the timing and/or do not allow their trainees to do solid role playing or to roll their sleeves up and get their hands dirty.  Not only does learning by doing accentuate the doing, it caters to the different ways that people learn and breaks up the routine of sitting in a single chair all day long.

4. Learn by sharing.  Peer to peer sharing is an online habit nowadays, yet in business, such a practice is encumbered by a whole variety of problems such as territoriality, unaligned goals & objective setting, not enough time allowed, poor systems for knowledge management… Creating a collaborative spirit in the office space is all about the mindset.  A training seminar which enables peers to share their experiences and expertise is a great opportunity to try to evolve that myndset.

5. Bring in the big gun executives only to listen and energize, not to pontificate.  If having the CEO come to the meeting is good for motivation and provides a singular opportunity to reiterate the company’s mission statement, latest results and/or revised strategy, the chances are that the big gun will not help the objective of the training session.  A training session, in the context of a Learning Organization³, is more an opportunity to share, build a collaborative spirit and a bottom-up mentality rather than reinforce the top-down chain of command.

6. Watch out for death by powerpoint. If visual aides remain a completely useful — if not essential — tool for helping to pass along information, the vast majority of powerpoints are ineffective for being too wordy, too linear and too boring.  A key consideration is the leave-behind, which enables the learner to complement what she/he is acquiring by (a) not having to copy down all the data and (b) by encouraging some amount of “personal transcription” which reinforces the learning.

7. Create surprise.  Just like the great brand experience you wish to give to your clients, a training seminar can be an opportunity to show how important you believe your human “resources” truly are.  And, specifically, that they are not resources, but human beings, belonging to your company.  A training “seminar” is a seminal opportunity to demonstrate your internal ubergeist and to walk the talk and cultivate the art of surprise.  Surprising your trainees has the bonus of keeping the spirits high and the attention on alert.

It is my belief that continuing education in a company — whether it is subsidized by the government (as is in the case in France, for example) or in the form of an established Sales University — will be one of the distinguishing forces that sorts the great from the good brands (to cite Jim Collins).  Great education is not just motivating.  It is not just a way to improve skills and acquire knowledge.  Great education is a fundament to creating a corporate “culture” and transmitting and living corporate values.  If innovation, collaboration and fluid communication are vital for creating a successful client-centric organization, a training philosophy that is itself innovative, collaborative and interactive is a great way to set your company on a successful trajectory.

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¹Blended Learning refers to a mixing of different learning environments, combining face-to-face instruction with computer-mediated instruction, videoconferencing and other emerging electronic media.
²Serious Games are games, using advanced technologies, whose purpose is other than pure entertainment. Typically, a serious game has a pedagogical focus and uses the game as a conduit for learning.
³A Learning Organization is the term given to a company that facilitates the learning of its members and continuously transforms itself.  Pedler, M., Burgogyne, J. and Boydell, T. 1997. The Learning Company: A strategy for sustainable development. 2nd Ed. London; McGraw-Hill.

Bleeding Apple Logo

As reported by ZDNET and BBC News “Apple offers free iPhone 4 cases,” Steve Jobs has shown himself and the company to have flaws.  I am a total and avowed Apple convert, but I am of the variety that never rushes out to buy the very first model (a late early adopter?). I have found that the risk/reward of being a front runner is just not worth it. Inevitably, the first model is “nice to have,” but the functionality is systematically a little imperfect and, for me, below expectation in certain basic elements.  Here are some examples of v1 flaws that I deemed I could live without…

• Ipod v1 – fragile hard-drive, poor search mechanics, battery lifespan…
• Iphone v1 – no random access search; poor battery life (still a problem)
• Ipad v1 – no 3G access
• Iphone 4 v1 – not good reception if you hold it in your hand [wrongly]

I will give Apple all the necessary credit for their innovation, category invention and masterful marketing.  And, I acknowledge and marvel at Steve Jobs’ obsession for simply beautiful design.  AND, I still believe that it does not pay to buy the first model.

That said, the Apple afficionados clearly have a good tolerance level for these imperfections and, in the community spirit, participate happily in the improvement suggestions for the follow-on version.  Apple’s ability to hold off and only do a second version once they have improved as far as they can (including adjusting pricing, etc.) is quite remarkable considering the amount of negative flack they receive.  But, as a LOVEMARK (3548 love it, 373 lose it as of today), they continue to host a vibrant conversation with their loyal fans and the company has kept going from strength to strength.

The iPhone 4 is potentially a turning point, however.  The competition on the phone / portable music player / camera is at least catching up… Meanwhile, Jobs’ off-hand, hands-off type of comment about the latest antenna problem is perhaps a bit symptomatic of a backhanded slap — almost as bad as BP’s CEO, Tony Hayward, saying that he wanted his life back.  And, in his appearance announcing the “case” patch,  you see Jobs comparing itself to other phones…. clearly a recognition of mortality.

The iPhone is like the others...

To even think that this could be compared to a Watergate type plot against Apple is a little scandalous.  ”There is no Antennagate,” claimed Jobs.  But who set whom up?  The conspiracy seems more linked to the shrouded internal politics of Apple.  Moreover, the problem is that one expects more of Apple… and, therefore, I believe that the “lucky” people who were able to get their hands on the early run of the iPhone 4 are right to be demanding.  The errors (read imperfections) that have accompanied this Apple 4 launch are manifold.

To call the reception problem a perceived problem is marketing mistake number 1.  Perception is reality.  To act with arrogance is marketing mistake number 2, especially in today’s world of transparency and authenticity.  To compare yourself to the competition: marketing mistake number 3.  To provide a bandage rather than a proper fix is possibly marketing mistake number 4 — rather than dig in on some of its huge profit margin to find a real fix.

Apple’s shine is still great and their stock price performance has been nothing shy of perfect (total disclosure, I own some Apple stock).  I can’t wait to get a newer version of the iPad.  But, clearly, the Apple has a little bug (aka a worm) that might be a little hard to shake off.  The wiggle room may just be getting smaller for upcoming launches.  And let’s keep an eye out for how the lovemark starts just getting some mere like-marks or, worse yet, lose-marks — that would mean a real bite taken out of the apple.

At your Service

French Service.  For some, this is an oxymoron.  Some like to say the same thing of American Intelligence.  But as far as French Intelligence is concerned and American Service, we tend to be on the right track!

Regarding French service, there has been much written about the issue of bad, snooty-nosed, unfriendly service in French’s stores, hotels and restaurants.  It is typically a Parisian problem, but Paris doesn’t have the monopoly on grumpy faced servers in France.  Where does this culturally imbued talent come from?

I believe there are three main culprits.

1. Poor incentives.  There is no incentive to do a good job in restaurants.  The French have an ironic concept called “service compris” whereby tipping is automatically included on the restaurant bill no matter the level of service provided,  Service compris means two things in French: the tip (‘service’) is included and the service is understood.  Clearly, it is more a case of service mal-compris.  One might say that this is just one industry, but it is an industry that has a far ranging reach — and is particularly visible to the tourist.  At the other end of the scale, tipping is not customary when the tips are not automatically included.  French tourists don’t naturally whip out a dollar bill (five?) for a kind service rendered.  About the only time I see tips being handed out in France is in a hairdressing salon where the opportunity to slip a few euros into the dashing stylist’s pocket seems a good trade-off for the bo-bo (bored bourgeoise) lady.  Adding 15% to a taxi fare seems out of the question for the common Frenchman. Speaking of taxis, of course, the Parisian taxi driver is another great example of poor service.  The situation is tipically resolved in that you hardly ever WANT to give a pourboire to a French taxi driver.  (I have written many articles, en français, about the taxi situation in Paris).  Notwithstanding the obnoxious attitude, the extra change “to drink” for a driver seems a little out of place, no?

The notion of smiling as a welcoming greeting is a foreign concept.  And great service — as generally recognized internationally — is just not on the radar for French management.  The frown is de rigueur.  Being at someone else’s beck and call is beneath most French people.  You would think it is akin to being a slave.  Regardless of the financial incentive, it is culturally, an undesired trait.  On the plus side, where the French sometimes have an edge is the area of discretion.  Service in a distinguished luxury hotel should be invisibly impeccable and refined.  In this, there may be grounds to develop a specific and successful French notion of service.  As my suave friend Kevin says, sometimes you need to deserve the concierge’s good guidance.  So, why is this the case?

2. Education.  The French educational system privileges knowledge accumulation; and, the more rational the subject matter, the more noble the endeavour.   Competence and know-how are the focus of the national education system.  [Ask a concierge the history of the building and he/she could very well expound lyrically.]  The FNAC is a classic example of knowledge as a service gone wrong.  The FNAC employees are supposedly picked for their passion and knowledge in a category.  Then again, they need to want to share that knowledge to the ignorant customer.  Teamwork and positive attitude are, at best, an after thought in the French education system.  Great service, on the other hand, involves empathy, humour and, above all, attitude.

Grumpy - a nationa passtime

3. The French consumer.  In a re-interpretation of the egg or the chicken debate, I think it takes two to tango.  If I were a salesperson at a retail store in Paris and were confronted day in and day out by the grumpy, frowning French customer, constantly looking down on me as if I were a sub-citizen, it is possible that I might also give up the mantle (read pretense) of good service.  It is highly possible that the customer (who went through the same high school system) has trained the salesperson in his/her image.

Culturally, the French are brought up with a critical mindset.  Critical thought is a highly valuable skill.  However, when critical thought moves from intellectual debate to strict judgment, there is a tendency to want to complain and to put others down; furthermore, the result can be that one is never content with anything. The art of critical thought begat the French pastime of complaining.  No one is ever happy with anything, which means we should just try not to be happy, period.  Take the weather.  Most of France has a true four seasons — essentially mild compared to the summer in Las Vegas or the winter in Montreal.  However, in the summer in France, you will hear the very same people who complained that the winter was too cold that the summer is too hot.  This is where perspective is good (and presumably travelling to other countries is a recommendable activity).   Yet, the French typically prefer to stay in France for their holidays — in part a question of budget, part a question of francophonie (and the usual notions of visiting family, etc.), and in part a question of enjoying an amazing choice within the boundaries of the Hexagon.  Frankly, though, you might be excused for thinking that the French prefer to stay amongst themselves to rant and rave within the confines of France, to evaluate each other’s ‘esprit‘ (quickness of mind, sharpness of tongue) and to complain about la condition humaine.

If you watch French roundtables on national television here, you will find plenty of well educated people that like to debate endlessly (and to cut each other off in mid sentence).  With more or less eloquence, the debates in isolation could be considered interesting.  However, the reality behind the debates is that they are more about having one’s opinion aired and heard than actually bringing about change.  The notion of responsibility for one’s ideas is limited to the articulation.  And, heaven forbid the idea should make true sense.  Once the individual’s ideas are out in the public, the collective spirit of France unfurls the flag and puts up red, white and blue tape to squash it, for a return to the unchanged, unchangeable way it was.  The French give great importance to ideas and there are many extraordinary French philosophers and writers.  Ideas are definitely more noble than action.  However, service is all about action and execution.

Taking a slight tangent, it occurs to me that the French are so enamoured with aesthetics and critical thought that it is the quest for the ideal, the perfect solution, that impedes progress.  Critical thought suggests that you can always find another, superior way.  The French are masters of la remise en cause, to put into question the actual premise for doing a particular act in the first place (before even wanting to improve it).  Perfection is indeed a wonderful ambition.  However, it cannot become an excuse for inaction.  The ship will by pass by if you wait for Valhalla.   And in the meantime, service-related businesses trying to develop in France — such as hairdressig salons, retail outlets, or a visiting company such as Starbucks –  are suffering from a lack of a trained talent pool.

The truth is that good service comes from people who enjoy people.  They must love being social.  They must have a positive attitude.  They must be able to focus on person coming in without judgment.  Want to walk in their shoes, per se.  Great service also comes from people who have, deep down, a strong self confidence.  If that is a tall order in any country, it also explains why good service should be paid for!

If Paris is the city of lights, an illuminated denizen of brilliant thinkers, one wonders when light bulbs will turn on about the need for quality service if the millions of tourists are going to keep wanting to return.

My three suggestions:

1. get rid of the “service compris” in the restaurants

2. introduce more sports and thespian activities into the school curriculum (to develop more teamwork and public speaking)

3. develop some government sponsored initiative (because if the government is not involved, it just will not go far) to incite innovative training programmes about true service.

What do you think? What ideas do you have?

For some good reading on the topic of French service, I suggest “Service Compris” (2000) by Philippe Bloch/Ralph Hababou/Dominique Zardel.