2014年9月29日月曜日

2014-09-29 - Look Who's Talking Now! Professor Jonah Berger on Viral Word-of-Mouth Marketing

 
HIP (Hard-Working, Innovative, Passionate) People Place
 
A noble purpose inspires sacrifice, stimulates innovation and encourages perseverance.
n  Gary Hamel


In an effort to develop future business leaders in Japan, where I am a university lecturer, I publish a blog in Japanese. Though I initially wrote about the work of other scholars and executives, I thought the blog would be more interesting if I could interview management leaders directly. My only concern was securing cooperation. Successful scholars and business professionals are extremely busy.

To my pleasant surprise, most have made time for me despite their often impossible schedules. I am delighted, indeed, moved. Not only have I enjoyed the privilege of being able to dialog with these individuals, I have found their talks inspirational. Each has exhibited exuberant passion and demonstrated the value of sheer hard work. Thinking about how much I have benefited from the interviews, I decided to establish this English blog to share them with a wider audience than Japanese readers. I am certain they will enlighten you. I hope they will inspire you.
 
 
 
 
 
 
Jonah Berger, PhD,
The Wharton School at the University of Pennsylvania
Professor of Marketing
 
 
1.   Please explain the cutting-edge technologies and methods in the field of social-medial marketing citing concrete examples.
 
Word of mouth is 10 times more effective than traditional advertising. People don’t trust advertisements because they know companies are trying to sell them something. But they do trust their friends.  So interpersonal communication has a huge impact on how people behave.  The movies, restaurants, and products people talk about on social media have a big impact on what other people buy.  So companies are shifting from spending money on traditional advertising to social media and offline word of mouth.  Not only are such campaigns cheaper, they’re much more effective in driving behavior.  I’ve helped companies like Coca-Cola, Google, and Samsung apply these principles to drive some amazing results.
 
 
 
2.  Can you introduce companies or case studies that are particularly noteworthy for their use of social-media marketing?
 
Coca-Cola has done a great job on social media.  They are authentic, fresh, and drive an emotional connection with their consumers. They don’t just see social as another advertising channel. They understand why consumers use social media and how to interact with them on these platforms.
 
 
 
3.   Is there a formula for successful social-media marketing? If so, please explain it with a concrete example demonstrating its application.
 
Successful social-media marketing depends on understanding consumer behavior. Why people share things in the first place. Many companies think that just having a social media presence is enough, but the different platforms are technologies, not strategies. If you do not understand how to use them effectively, a great deal of resources will be wasted.
 
As I talk about in Contagious: Why Things Catch On, there are six secrets to building successful word of mouth. Six, key, evidence-based principles to get people to talk and share. I’ve put them in a framework using the acronym STEPPS: Social Currency, Triggers, Emotion, Public, Practical Value, and Stories. Each principle is based on rigorous academic research about why some products and brands get more word of mouth and why online content goes viral.  By leveraging these six key STEPPS, and using them to craft contagious content, companies and individuals can help their products and ideas catch on. 
 
Take the hundreds of people that waited online for the new iPhone to be released. What did they do when they finally got the phone? They took a picture and shared it with all their friends. And if you think about why, the reason is because it makes them look good. Being one of the first people to get something that not everyone else has makes you look high status and in-the-know. It gives people Social Currency.  The better something makes people look, the more likely they are to share it.
 
 
 
4.   What is your outlook on the future of social-media marketing? How do you think it will develop or evolve? In anticipation of this evolution, what should companies and business professionals be doing to prepare?
 
The future of social-media marketing is customer insight. Without it, companies are doomed to fail.  Too many companies see social media as another advertising platform. They think if they just put their ads on YouTube people will share them. But without understanding why people share in the first place, many companies have lots millions.
 
 
 
5.   From your standpoint in America, what advice would you give to Japanese companies in general on effectively using social media?
 
Focus more on the psychology and less on the technology. Understand WHY people use social media in the first place and use that insight to build effective campaigns. It’s not enough to just get more followers. The key is engagement. How many people are sharing your content or engaging with the brand in an authentic way.
 
 
 
6.   As you know, the Cool Japan Initiative included in Prime Minister Abe’s economic revitalization measures aims to export Japanese cultural products to the rest of the world. What are your suggestions for fully exploiting social-media to achieve this aim targeting U.S. markets and consumers?
 
The world is much smaller than it used to be. What is popular in Japan today can become popular next week in the United States, but for that to happen, the cultural products need to leap across the geographic divide though social ties. Japanese cultural products must move from Japan to Japanese people living in the US to the broader US culture at large. Gangnam Style is just one recent example of something that broke geographic boundaries. Billions of views for just one piece of content. But for that to happen, millions of people have to decide to share the content.  And that’s where understanding the psychology of sharing becomes key.
 
 
 
7.   Are there aspects of Japan overall, the economy, Japanese firms or cultures that you are watching in particular? Would you be interested in visiting Japan to deliver lectures on social-media marketing if you give the opportunity?
 
I’ve worked with dozens of companies across the world and I’ve found the challenges are often similar. How do we grow our customer base? How can we get our new products or initiatives to catch on? Whether you work for a major corporation or a small business, a for-profit or a non-profit, understanding how word of mouth and social influence work are key. I’d love to share these insights with more Japanese businesses and hope to do so in the future!
 
 

2014年9月20日土曜日

2014-08-28 - TED is not the only one talking about design


 
 
 
HIP (Hard-Working, Innovative, Passionate) People Place

 
A noble purpose inspires sacrifice, stimulates innovation and encourages perseverance.

n  Gary Hamel


In an effort to develop future business leaders in Japan, where I am a university lecturer, I publish a blog in Japanese. Though I initially wrote about the work of other scholars and executives, I thought the blog would be more interesting if I could interview management leaders directly. My only concern was securing cooperation. Successful scholars and business professionals are extremely busy.

To my pleasant surprise, most have made time for me despite their often impossible schedules. I am delighted, indeed, moved. Not only have I enjoyed the privilege of being able to dialog with these individuals, I have found their talks inspirational. Each has exhibited exuberant passion and demonstrated the value of sheer hard work. Thinking about how much I have benefited from the interviews, I decided to establish this English blog to share them with a wider audience than Japanese readers. I am certain they will enlighten you. I hope they will inspire you.
 
 

 

Jeanne Liedtka

Darden School of Business, University of Virginia
United Technologies Corporation Professor of Business Administration

 

1.     Can you give us a brief overview of design thinking citing some concrete examples? What is the background to current theories and practices in this discipline?

I think of design thinking as just an alternative, problem-solving approach. In the world of business, we have lots of tools, and we have a pretty sophisticated toolkit in the area of traditional, quantitative analysis. Looking at how we prepare our MBA students here at Darden, I think the toolkit that has been missing is related to helping them on the idea-generation side of business. If you look at the frameworks we use in my own field, business strategy, they are frameworks for analysis of ideas, but not for the generation of them. I have felt for some time that we have an urgent need in business to help managers with what some people refer to as the “fuzzy front end” of innovation.

My original work was around organic growth. As a strategy professor, I was always frustrated by the fact that when I asked managers about their key strategic challenge, they would always indicate that it was finding organic-growth opportunities in their business. Though we have many frameworks in strategy like Porter Five-Forces and SWOT Analysis, none of these tools help managers think creatively about growth opportunities. Due, in part, to my frustration, I began doing research on managers who had been very successful in growing their businesses at a faster rate than their markets were growing.

Observing them, I saw that they were behaving in ways that sometimes resembled a scientist, other times a designer. They were taking an experimental approach, prototyping, placing small bets. Rather than focusing on the product that they themselves were trying to sell, these managers were getting to know their customers very deeply, paying attention to what they were attempting to accomplish. The managers had a learning attitude. Instead of expecting to arrive at the “right” answer immediately, they expected to iterate their way there. They expected to be wrong sometimes, improving their solutions along the way.

When I looked at my research data, I was struck by the extent to which highly successful growth-leaders in management were naturally behaving in ways that designers do. I began to think about whether or not it might be possible to teach those behaviors to a group of managers who did not find the behaviors as natural. That marked the beginning of my interest in design thinking. Of course, there was also considerable discussion in the U.S. business press at the time about companies like  IDEO and Apple. Apple’s high profile got people in the mainstream business media talking about design in the business world in a way that they had not previously done.

All of these factors came together, and I started paying attention to the practices of the design-consulting firms like IDEO, Frog, Continuum, and Jump. In specific detail, I began looking at what they were doing, trying to conceive of ways to translate some of their tools and processes into a language, an approach, that a manager not trained in design could use. The approach we ultimately created and teach at Darden really strives to combine the front-end, creative, idea-generation aspects with a rigorous, analytical, hypothesis-driven back end in prototyping. Our goal has been to produce a teachable set of materials that all managers could benefit from in looking for ways to innovate in their businesses.

This way of thinking has been around for decades. When you look at what we have written and the models we have developed, in many ways, we have not invented anything new. What we have done is translate what was already there. We took the concepts of design, often difficult for non-designers to grasp, and put them in a language managers can understand. User friendliness—creating resources managers could use—has been our primary goal in this work.

 

 

2.     Apple, IDEO, IBM, MeYouHealth, and The Good Kitchen have been cited as examples of companies that have introduced design thinking. To what sort of business outcomes has this introduction been linked? How can a company measure the benefits or ROI of design thinking? What costs are typically associated with the introduction of design thinking?

The metrics you should use to measure outcomes depend on the problem you are trying to solve. In the area of organic growth, where my initial interest in design was rooted, measurement is pretty straightforward: Does design thinking improve your growth rate relatively to what it was previously? At the same time, I personally believe that the introduction of design thinking produces many benefits that are more difficult to measure. However, in any effort, there is usually a set of measurable outcomes that you highlight—organic growth, revenues and profitability, for example.

In the  3M story,  design thinking is used to create a richer set of conversations between sales people and their customers, and so you can query the sales people. You can query the customers, too, to determine if they are having better conversations with sales staff. IBM used design thinking to redo their trade show. Coming out of a trade show, there is a metric called hot leads which looks at how many leads you obtain at a trade show based on attendees’ experience at the show. That is a measurable number. At The Good Kitchen, they could measure the number of additional meals people signed up to have served as a result of the design team’s efforts.

So, at one level, there is usually a set of concrete metrics related to the problem you are trying to solve. One thing I have learned in working with design thinking over the past few years is that using it to grow revenues is only one application. In fact, many of the cases we document involve individuals using design thinking for a broad range of different tasks like redesign of internal processes. I believe design thinking holds great promise for these applications, particularly in the government and non-profit sectors. Because design thinking can be used in many ways, how you measure outcomes depends on what you intend to accomplish with it.

As I mentioned, a set of outcomes that are difficult to measure also exists. Although we focus on its ability to improve the actual content of a solution, as I have looked at design thinking, I have come to believe it can also dramatically improve the process by which teams work together. Many of the design tools are collaborative. Looking at the area of creativity, we realize that a key ingredient to generating creative outcomes is the presence of diverse perspectives. For this reason, people with different perspectives are needed on teams aiming at creative outcomes. But as soon as we put people who are different from each other on the same team, they have difficulty reaching consensus: They start to debate, fight with one another. Considerable academic research indicates that many of the benefits of diverse team are lost due to the time such teams take to get anything done because they have to first harmonize many different sets of meaning and interpretations.

Design thinking’s collaborative tools help to align the way a team views the world, their definition of the problem and eventually their criteria for a really good solution. If you align the team around these issues early in the process, the endless debates and delays associated with the choice among different alternatives are greatly reduced.

How do you measure the resulting team learning and effectiveness? Well, academic researchers are certainly measuring them, but in the business world the benefits are sometimes difficult to observe. But, I think these difficult-to-measure-and-see benefits may turn out to be some of the most powerful outcomes ultimately produced by design thinking.

 
 

3.     Before earning a Ph.D., you acquired considerable experience in accounting and finance. Based on that experience, how do left-brain, number crunchers change following training on design thinking? Can you introduce some interesting examples from your consulting and training experiences?

The first thing I learned in my organic-growth research before making the transition to design was that our stereotypes about the types of people who are creative and those who are not are basically false. A lot of the individuals in the organic-growth research sample set were engineers and accountants, people who were not supposed to be creative. This is part of a problem I believe we have in business. We hold this myth that people like Steve Jobs are the only source of creativity.  By rejecting conventionality, they are wildly creative. They see things the rest of us do not just because of who they are. We know, though, that this myth is not true. There are lots of ways to be creative.

You can be data driven in your creativity, for example. If you put me in a brainstorming group and ask me to think of ten novel uses for a safety pin, but you do not given my any data to work with, I am not going to conceive of many uses. I do not excel in that type of creativity. But if you give me some deep data about customers I can mine for insights, I can translate those data into design criteria. Then, if you ask me to brainstorm with those criteria, I can be quite  creative.

This, I think, is the core issue. If we are expected to be creative in a vacuum, most of us who are accountants and engineers, people more comfortable with numbers, will not do too well. But those of us skilled in working with data, skilled in detecting patterns and discerning themes, are good at data-driven processes. In academia, we joke that we are all drawn to research on our personal issues. It could well be that I am not one of those terribly creative  people, and so I’m drawn to design thinking and research because I am fascinated by the creative process. Because I have a sense of not being skilled in this process myself, I am very sympathetic to how, as an educator, we can help other people who likewise do not feel confident in creative endeavors.

Now maybe I am one of those accountants who would struggle, but a lot of other people who started out in accounting turn out to be great at creative design. One of my favorite stories is about an accounting firm that does income-tax consulting. They have an organization full of lawyers and accountants. They have applied design thinking to re-engineer the process they use to have conversations with their customers based on prototypes. I tell the story of this firm in my first book on design thinking. This company demonstrates that an organization of lawyers and accountants can do great things with design-thinking tools.

This may be due partly to the fact that accountants, lawyers and engineers seem to have a lot of discipline. They are very attentive to process. They are willing to endure the hard work inherent in the learning process, and be persistent in improving their skills. When we give these professionals a process, they work hard at it. Most of the engineers whom we teach design-thinking principles apply them when they return to work on Monday. Working hard at the process, they measure the results, striving to improve them.

Sometimes the supposedly more creative types continue doing what they have alwaysdone when they return to work on Monday. They lack the motivation and discipline, or do not sense the need to work hard at design processes because they think, “Why do I need a process to be more creative?” Paradoxically, we seem to have the most success teaching these processes to people whom you would stereotype as unlikely to be creative.

 

 

4.     Research has found that the corpus callosum connecting the left and right hemispheres of the brain is up to 20% denser in women than men. This finding leads to the hypothesis that women might be more adept at design thinking. Do men and women appear to differ in their ability to understand and apply design thinking? What does your practical experience teaching this discipline suggest?

As academics, we all hesitate to generalize about issues like gender, but at an obvious level, we know that women are more comfortable with their emotions and with expressing them than men. On average, women are also more attuned to the emotions of others than men. To the extent that design thinking begins with empathy and involves doing a form of market research that includes interviewing people, getting them to talk about their emotions, women are generally more comfortable with the design process. It is more the way we have been taught to operate in our societies. Women have been the keepers of emotions for a long time in many societies. That has been our role—to raise children, nurture; to coach and attend to others’ needs. Women tend to be adept at reading others’ needs. These skills are really useful in design thinking. I think the concept of design thinking seems less foreign to women in business than to men, which I believe is an advantage.

Anecdotally speaking, I do see a lot of women in senior positions in organizations where design thinking is critical to the role. When my co-authors and I wrote the book on organic growth, The Catalyst, one of our challenges was to find women managers leading growth efforts in their organization to interview. They were difficult to find. We kept looking for women to represent the stories of women in the book.

We joked when we started writing our first design book, Designing for Growth,  that we had to find a few men; otherwise, the book would be  case studies about women. In these corporations, we found a lot of women in the design-services area, the user experience area. All of the areas traditionally employing design thinking were disproportionally headed by women. In my interactions with companies, I have found anecdotal evidence that design thinking is a field where women may have a leg up compared to many other areas of business where they seem to be at a disadvantage. This situation is not surprising given the types of roles that have been traditionally assigned to women.

It’s quite affirming to women that design principles are consistent with what they have raised to believe as opposed to traditional business, which is inconsistent with the way we have been raised to behave. But we do not want design-thinking to become a pink-color ghetto for women. Then, design-thinking would probably become devalued in organizations - just too “soft.” . In this respect, the predominance of women heading business areas where design-thinking is crucial could be  a mixed blessing.

Just a few months ago, we published a project workbook on design thinking intended to be a companion book to our original book on Designing for Growth. Instead of focusing on the ten tools, it introduces a fifteen-step process intended to lead a manager or anyone else who wants to use design thinking through the process as they undertake a particular project. We have entitled this resource The Designing for Growth Field Book: A Step-by-Step Project Guide. The purpose of the book is to walk readers concretely through a specific project, bringing the tools and ideas of design-thinking into the project space. This book does not contain as much content on the process. Nor does it include case studies and examples of other companies like our other books. It’s simply a short workbook intended to serve as a project guide.

In publishing these books, we have provided materials at a variety of levels that help managers in different ways. The first book helps you understand the concept of design-thinking and the key tools and their uses, as well as what the high-level process might look like. The second book does not lay out the process in deep detail or coach you on how to implement it, but instead introduces ten organizations currently using design thinking. The third book, in contrast, is a detailed look at how individuals can use design thinking in a particular project. This is important because you can read the theory of design thinking and about other organizations using it, but until you actually try it yourself, until you practice it, you do not really learn it.

To teach these tools to people who cannot afford to come to the Darden School here in the US to learn them, we have created a completely asynchronous online course. It’s currently available only in English, but it will run every few months. Our goal in introducing this course is to provide an economical option for individuals interested in teaching themselves the principles of design thinking.

We have also created the website Design at Darden that features teaching resources like videos and cases. One video, for example, walks viewers through the journey-mapping process. Another is a short presentation of the visualization tool and how to use it. Videos on IBM and The Good Kitchen are also available. The website and materials are free once you register at the site.

 

 

5.     Pixar and Google are famous for their innovative office environments. Do you think there is a positive correlation between such office environments and the prevalence of design thinking in an organization? Do you think particular office environments facilitate design thinking?

I was recently reading an article on this topic. I think it is an interesting research area that is just beginning to attract the attention of academics. We know from an education standpoint that the physical environment makes a big difference. When we started teaching design thinking at Darden, we were a traditional, case-method business school. All of our classrooms were comprised of rows of fixed, tiered desks like those you would find at Harvard Business School. Though this environment is terrific for teaching cases, design teaching cannot be taught in such an environment.

Design thinking requires large open spaces allowing people to sit together at tables and work in teams. People need to be able to post their ideas on the walls and create visuals. If you think about a traditional, corporate conference room, a giant, useless table occupies the center space. The walls are decorated with paintings, allowing no room for posters and displays. These conference rooms are the complete opposite of what is needed for design thinking. We learned firsthand that we had to build a new space in order to do design thinking at the Darden Business School.

I think the same applies to corporations. They do not need expensive resources for design thinking, just an empty room with tables, chairs, and lots of wall space. Though this set up is not expensive, most organizations do not have these sorts of spaces. According to recent research, cubicles are not necessarily bad because people need some privacy for reflection. A completely open environment would be too distracting. But the cubicle design needs to be complemented with lots of space for collaboration. In other words, cubicles are not awful, just inadequate by themselves.

Because design is intensely collaborative, open spaces for people to work together are also needed. If you go to a design studio like IDEO or Jump, you will find that they have these “war rooms.” Project teams get their own room, where they can leave visuals on the walls. They do not have to take everything down and clean up for others to use the room. As a result, the walls of the room actually tell the story of the project and its progress. If the boss wants a progress update, you just take him or her on a gallery tour of the room! As you suggest, I do think that creating physical spaces for design like this holds great potential.

 


Joseph Gabriella

A long-time resident of Japan, I am currently a lecturer at Toyo University in Tokyo, Japan. Before returning to academia, I spent over ten years in industry as a senior manager of multinational and domestic companies in Japan in the fields of finance, pharmaceuticals, and hospitality. In addition to pursuing my passion for education, I also continue to work as a consultant on a project basis, tackling what I call square-peg problems, business needs that do not fit neatly into a particular consulting-practice area. Over the past four years, I have completed projects for U.S., Japanese, and Chinese for-profit and non-profit enterprises. Active as a researcher as well, I have published academic papers and books in both Japanese and English. I welcome your feedback on this blog in my ongoing effort to improve it.

jjapan1802@yahoo.co.jp

 
English Blogs
Hope from Japan                http://hope-from-japan.blogspot.jp/
Venture into Japan             http://venturejapan.blogspot.jp/                                        

Japanese Blogs
http://stepover-us.blogspot.jp/

 

Yuzo Sugimoto

A graduate of Yokohama National University, Yuzo completed his MBA at Pepperdine University. After acquiring ten years of experience in public finance, infrastructure privatization as well as  public-relations utilizing mass media, he returned to his undergraduate alma mater to study for a Ph.D. in Economics. His research focuses on eco-friendly businesses and the marketing strategies of entertainment and fashion businesses. Yuzo has published numerous book in Japanese combining education and entertainment. Titles in his edu-tainment series by Garyusha Press include  V is for Victory: Secrets of Victoria’s Secret’s Success, What Lady Gaga teaches us about business, An Invitation to Victoria’s Secret, and President Obama and Hybrid Vehicles.
 
(The Institute for the International Education of Students, Tokyo


 

© 2014 Joseph Gabriella, Ph.D., MBA. All rights reserved.