Chief Program Killer

I had a conversation yesterday where one of Peter Drucker’s maxims on innovation was mentioned: sustained innovation can only happen in an organization if you are diligent about killing programs that do not provide sufficient value.

The reason for this is plain. It is impossible to make resources available for sustained innovation if all the resources of the organization are tied up in existing programs, products, services, etc.

Many organizations have put an executive in charge of fostering innovation but I imagine few of them consider putting the same person in charge of killing programs as well.

David Gammel's 2008 Summer Teleconference Series

I am conducting three teleconferences this summer on a variety of topics that have been in high demand with my consulting and speaking clients. I hope you’ll join us!

I will cover the following topics during the series:

  • Creating High-value Partnerships with Technology Providers
  • Using the Web for Customer-sourced Innovation
  • Global Web Site Strategy

The live calls are absolutely free to attend. You also have the option to purchase recordings of all the calls if you would prefer to listen to them at your own convenience. Anyone who purchases the recordings will also receive access to a bonus teleconference.

The first call is Friday June 20. Register today!

David Gammel's Web Strategy Report, Volume 1, Issue 2

Thoughts On Strategy: Facilitating Customer Innovation Online

  • Innovation is nothing more than doing something new or something you have already done in a different way.
  • Customer-driven innovation is the creation of ideas for doing something new from your customers.
  • This has obvious applicability to online communication, community and collaboration!
  • Track what people are saying about your company, organization, products and services online. Many ideas and new perspectives can be surfaced this way alone.
  • Leverage existing customer communities anywhere on the Web when they are discussing how to improve your business.
  • Determine how you can best engage your employees in this online conversation that is going on all around you. The more staff you have paying attention, the better a chance for new ideas to break through to you.
  • Consider facilitating the generation, discussion, and evaluation of new ideas from your customers via interactive web sites. The case study below provides an example.
  • Publicly calling for ideas from your customers conveys a promise: that you will genuinely consider them, indicate which you are going to pursue, and give credit where credit is due for the successes.
  • The hardest part of sourcing innovation from customers is not going to be your customers. It is going to be getting your staff and organizational culture to incorporate them. Lay the groundwork and infrastructure to adopt great ideas before you ask for them from your customers.

Case Study: : Dell and Starbucks Customer Innovation Web Sites

Both Dell and Starbucks have launched web sites that ask their customers to suggest, rate, and discuss ideas on how to improve in any aspect of their company, operations, or products and services. Suggestions range from adding an extra shot to Venti sized lattes to ideas on being a more socially responsible global citizen. Both sites use Ideas, a service of Salesforce.com.

How are these sites different from a glorified suggestion box? Both are sponsored by the CEOs of each company, making them high profile projects internally. Each has staff dedicated to monitoring the site, responding to each entry, and taking ideas into the company for exploration. These are not trivial, feel-good, marketing campaigns. They have been designed as a key element of the overall innovation process for each company.

Dell has a dedicated blog, called Ideas in Action, where they report on the progress of ideas within the company and solicit feedback from the community of customers involved in the IdeaStorm web site. This is a great example of how the company shows its commitment to listening to their customers. It was also a critical step, given how Dell’s billion-dollar brand was bloodied by bloggers in the not-too-distant past.

This leads us to the key to success for this kind of effort: it starts within the company, rather than on the Web. If staff incentives and business processes are not redesigned to value and nurture this form of customer innovation, it will fail. Worse, publishing such a site without the organization firmly behind it reneges on the implicit promise to take the customer’s contributions seriously.

High Geekery: Occam’s Razor 2.0

The simplest solution online is often the best when interacting with customers. All you need to do to illustrate this is to complete a transaction on Amazon.com and then try to do the same on the web site of your telephone service provider. It’s rather obvious which company focuses on customer value and which does not, isn’t it?

This is even more important when you are trying to facilitate customer-driven innovation.

Take, for example, Proctor & Gamble’s effort in the late 90’s to use the web to allow customers to create their own custom cosmetics via a web site tied directly to an automated factory built just for this purpose. This was a very elaborate system to allow customers to innovate their own cosmetic colors and properties. It fell flat and was shut down at a huge loss a few years later. There were simply too many options for a normal person to pick from when all they wanted was good product from a brand they trust.

Now compare this to the simplicity of the Ideas application from Salesforce.com highlighted in the case above. Ideas are easily suggested, rated, and discussed. The company publicly responds to them, and everyone moves on, with the best ideas being implemented. The cost of a bad idea in this system is very low and good ideas are surfaced without strenuous effort. All with a simple, easy-to-use interface. This is Occam’s Razor 2.0 in action.

Emitting HTML

Any HTML markup generated by a web content management system should be customizable. This includes everything from the opening html tag to forms. If the system creates tags they should be customizable by the site publisher.

Why? This provides maximum flexibility to the site owner in deploying their desired template and overall design. Sounds like a no-brainer, huh?

You might be surprised how often this can be an issue, particularly with content management systems that are not very mature or have not been updated in a while. It creates many headaches in deploying web site designs and might even prevent the site owner from deploying the best possible design for their needs.

Add this to your list of key things to assess when reviewing web content management system.

Robots.txt Protocol Enhanced by Big Search Engine Companies

I learned today, via Search Tools, that Microsoft, Yahoo! and Google have agreed to specific extensions to the robots.txt file protocol. All of their search engines will now honor additional directives. More info from Yahoo! and Google.

What is robots.txt some of you may be asking? It is a simple text file you can place on your web site to tell search engine spiders what parts of your site they should index and which they should ignore. It has been around for a long time and these are the first additions to the standard in at least a decade.

Building Credibility Even When You Can't Say Anything

Great example from the Direct2Dell blog of listening to the online conversation about their future products, summarizing the discussion, and simply stating what they can share about it right now (not much):

Dell’s Secret Mini Laptop: Speaking of D6, a Gizmodo post about a forthcoming Dell mini notebook sparked hundreds of reactions in the blogosphere. Anne B. Camden reacted and shared a few more pictures in her post on Your Blog. Reaction was pretty positive. Seems like a lot of folks are interested in a small notebook at an affordable price. Still, others in the blogosphere want a sub-notebook that doesn’t skimp on performance (take a look at the comment threads from Gizmodo and Engadget to see what I mean). When we can share more details on this product, we’ll blog about it.

(Emphasis added by me.)

This is a great way to acknowledge a topic while being truthful about not being prepared to share anything. This kind of post builds credibility with their most dedicated followers (pro or con). Staying silent would miss an opportunity to build trust, at best, or actually harm their reputation.

I’ll be discussing Dell’s customer idea generation web site, which uses Salesforce.com’s Ideas application, in the next issue of my newsletter. Be sure to sign up this week for David Gammel’s Web Strategy Report to get the next issue. You can read the first issue If you missed it last month via the same page.

Developing Your Own Technical Talent

I hear from many clients that it is still quite hard to find experienced technical talent for IT or web development and administration work. What to do when you can’t afford to lure away an experienced technical employee? One alternative is to develop your own.

The key to success is to design your positions and professional development program to enable you to develop an entry level person and then promote them in place. This eventually develops the skill set you need while enhancing your chance of retaining the person after they have been trained.

Design an entry level technical position that you will fill. Also design a more senior position, based on the original job description, that includes higher-level responsibilities and the requisite knowledge, skills and abilities. As your entry level new hire is developed, promote them into the higher level position which you have created by design. It’s good to have two to three of these junior to senior path positions in place, if you can afford it, so that you can have new talent in the pipeline before a trained person does eventually leave.

This does a couple of things. It offers the realistic chance of relatively rapid promotion for the entry level person once they have learned how to do the more advanced job. They don’t have to wait for someone more senior to leave, they can simply be promoted in place. This will help to acknowledge the value of their new skills to the company and contribute to keeping them with you longer than they would have stayed for a dead-end entry level job. It also creates a senior position that you can fill directly if you happen to find that perfect candidate (it does happen now and then!).

Selling Like It's 1989

I was shopping online a few days ago for a nice fountain pen. When you want a fountain pen, you start with Mont Blanc. However, Mont Blanc publishes no prices online and they do not allow their retailers to do so either. The result? Many pages across the web featuring very nice Mont Blanc pens, each with a ‘contact for price’ button.

I bought a pen from Cross instead.

Price really wasn’t an issue here, it was convenience. I did not want to go through the hassle of having to interact with a human for what should have been a very simple, self-guided, impulse buy.

Controlling price information was a feasible strategy pre-Web. Keeping the numbers hush-hush prevents retailers from discounting competitions, protecting profit and the sales channel. This does not work when customers can easily price shop across the globe and expect to be able to make an informed purchase immediately.

I shudder to think of how many sales Mont Blanc forgoes with this dated tactic.

Campaigns and Loyalists

Ever wondered what happens when your marketing campaign generates a loyal following? Case in point: Closing a Disney community from Church of the Customer Blog.

This new online world trips up marketers from the big to the little, the for- to the non-profit. A key lesson in this story: building community into a by-design time-limited campaign is counter productive. Established communities want to continue even if the budget for their platform has run out.

David Gammel's Web Strategy Report, Volume 1, Issue 1

Thoughts On Strategy: Going International

  • A Brit, working in Switzerland at a multinational scientific research organization, invented the Web to help his colleagues easily share the results of their research from anywhere on the globe. The Web has been, and always will be, a global communications platform.
  • 20% of the world’s population has access to the Web as of December 2007.
  • 50% of the world’s population has cell phones.
  • Asia (including India and China) has the lowest percentage of population online but the greatest number currently online.
  • Internationalized systems support deploying content and services in multiple languages and support gathering data and payment in different formats and currencies.
  • Localization is the process of applying content, design and functionality to an internationalized system in order to address the needs of a country or region whose people share common cultural, economic, and linguistic attributes.
  • Not all web site audiences are created equal. Focus your efforts on serving those with the highest potential value to your outcomes.
  • Being truly global means being local everywhere. Do your homework, focus on your highest value audiences and build your international offerings over time.

Case Study: The Chinese Olympic Committee

The Chinese Olympic Committee is the body that won the 2008 Summer Olympics for China. They have deployed two sites as the country prepares for the big event later this year. One is in English and the other, naturally enough, in Chinese. They provide a good example of an organization developing two different presentations of their brand and information to two broadly differing audiences.

The English language site, en.olympic.cn, is clearly targeted to the entire world outside of China. It is in English and provides links to resources, information and headlines for anyone interested in the Olympics in China. Notice that the colors, although featuring some red, use more orange, blue and white.

The Chinese site, www.olympic.cn, is completely written in Chinese except for a link to the English language site and some roman numerals that count down the days until the Games begin. The color red is predominant and Communist Party iconography is much more in evidence. It is also a much more polished presentation and design compared to the English language site.

A few things to note:

  • The two sites have different designs and content, tailored to the outcomes and audiences for which they were created.
  • The navigation bars had to be structured differently, even if the sections were the same, due to the varying sizes of Chinese and English characters.
  • The one consistency between the two sites is the branding of the Chinese flag, Olympic Rings and the name of the organization in Chinese and English. This is the one visual element that ties the two together as part of the same organization.

By bifurcating their audience in this way the Committee is able to provide tailored information and design to their domestic audience and a different presentation and language to everyone else. This simple approach allows the home country visitors to have a culturally (and politically, I’m sure) tailored experience while the rest of the world can access foreign-targeted content in a generally more accessible language. However, the English language content still carries a very identifiable political spin to news and events, as the torch relay of the past month has triggered protests around the world.

High Geekery: Machine Translation

Machine translation of language is not anywhere near ready for prime time use. Executives everywhere are tempted by the low cost of machine translation when compared to hiring a human to do it. However, as in so many cases, you get what you pay for when you take the road less costly.
For example, using the venerable Babel fish web site to translate the home page of the Chinese Olympic Committee leads to the following headline in English:

“The badminton champion lucky new huge mythical bird and the numerous stars sings refuels China.”

Who knew badminton birdies have a role in the energy markets?

If it’s worth translating, it’s worth hiring a human to do it. If you cannot justify the expense, increase the value of what you are trying to achieve online or simply stick with your native language.

New Offerings from David

Here are a few new resources and events from C. David Gammel: