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CHIEF STRATEGY OFFICER
DEC 2016 | #23
The Sharing Economy Boom The peer-to-peer exchange of services is set to transform both work and ownership /16
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Preparing Your 2017 Business Strategy With this year coming to an end, it's time to explore the most useful trends to include in your 2017 business strategy /14
Design Thinking: Learn About Your Customer To Foster Creativity It is difficult to innovate in today's hyper-competitive environment, so Nathan Meyer looks at ways to boost creativity through design thinking /19
Women in Strategy Summit March 21 & 22, 2017 | New York
Speakers include
Contact Sam Blunsdon +1 415 604 3777 sblunsdon@theiegroup.com theinnovationenterprise.com
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ISSUE 23
EDITOR’S LETTER Welcome to the 23rd Edition of the Chief Strategy Officer Magazine
Millennials now shape the largest working and consumer population in the US, meaning that more strategic decisions and expectations are going to be set around them in 2017. Tailoring your goods and services according to the tastes and preferences of generation Y is no longer a matter of choice, but a necessity to remain healthy in the market. Any successful brand initiative capable of driving loyalty always comes from deep understanding of the customer base - their needs, interests, and culture. Personalization is among the approaches that should be on your priority list, but today, this means much more than just a personal greeting embedded in an email. Later in this issue, Emma Taylor argues that millennials are driven by self-branding and communication, and explains why providing the personal touch will drive their interest in a product. The interest in self-branding, though, is complex. Organizations should not create profiles of millennials based solely on the narcissists on social
media, even though they may be easy to find. They do not represent the majority of millennials, and there are many negative myths to dispel, with 2016 being a particularly dispiriting year for generational relations. Terms like ‘snowflake’ have entered the common vernacular as an insult for young people who disagree with their predecessors, and there are fences to be mended. Millennials are not as materialistic and selfish as you might believe, with surveys showing that they place a higher value on materialism than the generations before them, and companies must also start to embrace such qualities in both their marketing strategies and in their workforce.
away, the sooner they will succeed in their brand goals and business strategy. As always, if you have any comments or would like to submit an article, please don't hesitate to contact me at anastasia@theiegroup.com
Anastasia Anokhina managing editor
Millennials make valuable additions to any team, and they need to be seen as a force that drives economic growth and as such their needs should be taken into consideration. Generation Y is as productive and hardworking as the baby boomers, but as is the case with all generations, they are different. The sooner companies acknowledge the importance of collaborating with generation Y and stop turning them
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Engaging Your Audience & Utilizing Your Social Media Presence
Digital Marketing & Strategy Innovation Summit April 26 & 27, 2017 | Hong Kong Speakers include
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Contact Ryan Yuan +852 5808 1636 ryuan@theiegroup.com theinnovationenterprise.com
contents 6 | PERFORMANCE MANAGEMENT 2.0
14 | PREPARING YOUR 2017 BUSINESS STRATEGY
Conventional performance management methods have seen organizations struggle to retain, engage, and encourage employees. Allie Laurent looks at how companies can do it whilst evaluating their performance
With this year coming to an end, it's time to explore the most useful trends to include in your 2017 business strategy
8 | HOW TO RETAIN MILLENNIALS AND DEAL WITH THEIR SIDE HUSTLES
Working cultures have evolved, with many millennials no longer looking to climb the corporate ladder and prefering self-employment. How should companies deal with the new trend? 11 | THE CRITICAL NATURE OF BUILDING A POSITIVE WORKPLACE CULTURE
Communication is such a basic concept, yet it’s one of the biggest downfalls of many otherwise successful businesses. We look at how to build healthy corporate culture based on trust, transparency, and recognition
16 | THE SHARING ECONOMY BOOM
As technology-driven economic models are becoming widely implemented, industries must adjust so they don't lose competitive advantage. 19 | DESIGN THINKING: LEARN ABOUT YOUR CUSTOMER TO FOSTER CREATIVITY
It is difficult to innovate in today's hyper-competitive environment, so Nathan Meyer looks at ways to boost creativity through design thinking 22 | CATCH ME IF YOU CAN: MILLENNIALS AND THEIR BRAND LOYALTY
Today, marketers use and explore every approach to gain brand loyalty from customers the solution, however, is easier than you think
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Performance Management 2.0
Performance Management 2.0 1.0 With the shift in working generations, companies should review their methods of talent evaluation
Allie Laurent, Strategy Writer
TODAY, PERFORMANCE MANAGEMENT is not becoming easier, and it's partly due to modern corporate cultures being much different from what we used to see 20 years ago. These are dynamic ecosystems, where any initiatives orientated on improving, monitoring, and analyzing employee performance should be done with extra care. The modern environment and a shift in working generations towards millennials, has seen companies struggling with retaining, engaging, and encouraging. One of the reasons is that many still use traditional performance appraisal methods, which no longer work. Conventional performance management is a set of tools and initiatives based on setting standards and scoring, where the activity itself can
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appear as costly, impersonal, and stressful for both employees and managers. According to HBR, more than one-third of US companies have moved on from the traditional appraisal processes to softer, yet more effective approaches. For the rest, the idea of abandoning the annual skill review still seems heretical, mainly because companies are unaware of how to adopt different approaches. Instead of labelled departments and a strictly defined hierarchy, today, more companies move towards team networks and flexibility, after acknowledging that there is something else that motivates and encourages millennials to perform well at a workplace. Instead of having annual reviews that many employees see as the worst
Daily working processes happen in a rhythmic manner and so should a manager's participation in an employee's professional life.
time of the year, it can be useful to look at their performance from a different perspective and change the aura around performance management from negative to positive. Daily working processes happen in a rhythmic manner and so should a manager's participation in an employee's professional life. There is a direct link between an employee's contribution, commitment, and their job satisfaction. Achieving that balance must be a top priority, as it will make management much easier for both sides. Providing ongoing feedback, skill development, and recognition are the ways to achieve this. Additionally, these will help to effectively track job performance (without a stressful intervention) and will motivate individuals rather than make them feel obliged. However, none of the approaches will work, if a healthy manager-employee relationship is not in place. Communication has always been at the core of any strategy, as when sharing and collaborating, people feel genuinely integrated into working processes. A manager plays the key role in this, as they need to ensure communication is going in the right direction. We are not looking to build a friendship, but to encourage more conversations orientated on employees' contribution, their professional
development, where accountability and expectations are clarified at all times - in a respectful, rather than demanding manner. As a result, managers take on more of a coaching role, appear less intimidating, and more trustworthy. Conventional methods of talent management are often impersonal, therefore, in order to benefit from the evaluation process, it's worth analyzing all approaches, opt out from practices that can harm, and retain those which are focused on the wellbeing of corporate culture and employees. For example, a traditional process includes a focus on a skill gap analysis, whereas a modern one suggests looking in depth at strength development. With this, aside from identifying areas for improvement, a manager also looks at the areas where an employee is exceptionally good. By being provided with an opportunity to further develop strengths, whilst working on weaknesses, a person is more likely to work harder and stay focused on goals and their professional growth. When talent management is based on transparency and mutual trust, there shouldn't be problems with identifying and tracking how well employees are performing and how fast the set targets are hit.
More than one-third of US companies have moved on from the traditional appraisal processes to softer, yet more effective approaches
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How To Retain Millennials And Deal With Their Side Hustles Millennials balance between full-time roles, whilst enjoying being involved in a 'side hustle'
IN ORDER TO RETAIN MILLENNIALS, COMPANIES NEED TO START UNDERSTANDING THEIR MOTIVES Anastasia Anokhina, Managing Editor
THERE IS A REASON WHY entrepreneurs like Elon Musk and Richard Branson are recognized by so many. They serve as examples of when pursuing a purpose turned out to be a good and profitable idea. Each successful career is unique to an individual, but as Confucius rightly pointed out: 'Choose a job you love, and you will never have to work a day in your life.' The concept now acts as mantra among millennials, where an increasing number of them don't see joining the corporate world as a desirable or long-term option. Tables have turned with generation Y. The days of joining a large organization and making your way up from clerk to executive are gone, and
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millennials are choosing jobs where they can make a difference. But despite valuing their personal and professional growth, they still have bills to pay. Stable income is one of the factors holding millennials back from pursuing their initial career dream. Thus, they balance between full-time roles, whilst enjoying being involved in a 'side hustle'. It's a myth that side hustles are there solely for generating an additional income and here is why. Today, thanks to technology, people have an opportunity to learn and do as many jobs as they like without leaving a digital space. Many Millennials, in particular, see freelancing as a way of expression and
Among the most desirable aspirations that millennials set to achieve are a work/life balance, 'stopping worry’, ‘reducing stressors', and being satisfied with an existing job. 'finding themselves', while of course enjoying the additional income. So, 20- and 30-somethings having two or three jobs at the same time has become common and is no longer an indicator that somebody may be struggling financially. This also dispels the myth of millennials being the laziest generation - they simply have a different vision. With this generation, bankers may find themselves as part-time writers or fitness instructors - there is a never-ending hunger for self-expression and an urge to be recognized as an individual rather than a suit. Thanks to LinkedIn and various apps like Freelancer, finding a side option is easier than ever, but this may mean bad news for employers. According to the recent millennial report by Deloitte, 66% of millennials expect to leave their job by 2020. Millennial turnover rates continue to rise. Deloitte also found that only 28% of millennials worldwide feel that their organizations are making 'full use' of the skills they have to offer, another reason why the group always has one foot out of the door. What can companies do to retain millennials? Generation Y has a reputation as 'job-hoppers'. If we look at their profile, the average millennial would have had to show an excellent academic record to get to college, and after graduation is expected to already have job experience and good results in extracurricular activities. After that, an individual would
have had to find a well-paid job to pay off their student loan which on average comes to a total of $37,172, according to data from Student Loan Hero. Facing financial pressure and being obliged to work in a place that doesn't resonate with their initial plan would lead to a negative association with everything related to the corporate world. A study by the Happify data science unit found that among the most desirable aspirations that millennials set to achieve are a work/life balance, 'stopping worry’, ‘reducing stressors', and being satisfied with an existing job. Smart companies are already changing recruitment approaches and organizational structure by putting an employee's interest first. The millennial wouldn't leave a job if an employer expresses a genuine interest in one's personal and professional growth. By introducing self-development programs in the workplace and allowing flexibility around working hours are two effective measures to start retaining millennials. Jacqueline Breslin, Director of Human Capital Services at TriNet pointed out that: 'Young adults aren’t necessarily interested in the traditional workplace environment and that their work-life balance is crucial to them.' Flexibility in both working hours and professional development don't mean sacrificing productivity levels. According to a working paper from the National Bureau of Economic Research, employees spend at least 30 minutes a day on non-related to work activities, so wouldn't it be better if this time is spent on one's self growth?
Thanks to LinkedIn and various apps like Freelancer, finding a side option is easier than ever, but this may mean bad news for employers /9
Creating & Implementing Innovative Strategy
Chief Strategy Officer Summit
Sign up with Victor Hernandez +61 2 8188 7345 vhernandez@theiegroup.com
8 & 9 February, 2016 | Melbourne Speakers include
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The Critical Nature Of Building A Positive Workplace Culture Rachel Craig, Contributor for Strategy
Five effective techniques you should be using
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ALL TOO OFTEN, businesses fail to acknowledge and recognize the significant impact of workplace culture on employee performance. This is a risky stance to take and can cause untold damage to morale and productivity, employee retention and, ultimately, organizational profitability. An ineffective workforce is simply counterproductive to success. If you want to build and sustain a strong, supportive workplace culture, it needs to happen from the top
Avoid taking people for granted. Acknowledge hard work and dedication by showing sincere appreciation to your workforce.
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and it needs to happen fast - no dilly-dallying around. It will require commitment from all managers and leaders within the organization, each of whom must make a concerted effort to introduce new initiatives and encourage positive behavior through example and recognition. Despite what you may think, you don't need to spend an inordinate amount of time or money to establish and maintain a positive
workplace culture in your organization. It simply requires a little bit of forethought and the commitment of those in leadership positions to implement and inspire change from within. Here are five effective techniques you can use to motivate your employees and create a united and positive culture:
1. Establish trust
2. Effective communication
To be effective, relationships must be built on a foundation of mutual trust and respect. Without trust, you’re unlikely to achieve any semblance of a positive workplace culture. If your employees have little faith in your values, commitment, and ability, it will be incredibly challenging to establish effective working relationships in which you can connect, motivate, and inspire them to excel.
Communication is such a basic concept, yet it’s one of the biggest downfalls of many otherwise successful businesses. Poor communication causes confusion, damages relations, and employee performance, and essentially leads to a weak and ineffective workplace culture. It’s also incredibly harmful to your bottom line.
It’s also important to slacken the reigns of autonomy - don’t micro-manage to the extent that you’re causing undue stress. If there’s a lack of trust in an employee’s abilities, address the issue, explain your expectations and empower him or her to excel in the role. Make sure your employees have all of the necessary skills and tools to carry out their tasks effectively, without the need to scrutinize their every move.
If your employees do not know what you’re trying to achieve, if they do not understand the messages you are attempting to convey or what you want them to do, you’ll have a very stressed and unproductive workforce on your hands. Be clear about your aim and intentions, make sure they fully understand what is expected of them, and always choose the most appropriate means of communication to avoid misinterpretation. During times of organizational change or economic uncertainty that may cause concern to your workforce, it’s even more important to keep the lines of communication open. Employees need to feel informed and reassured - make sure they are kept up to date with any changes that may affect their day-to-day activities or future in the organization.
Make sure your employees have all of the necessary skills and tools to carry out their tasks effectively, without the need to scrutinize their every move
3. Encourage feedback
4. Build rapport
5. Employee recognition
Inviting and encouraging employee feedback is an extremely effective way to determine and understand how your workers feel and whether their needs are being met. You can’t just guess, lest you make inaccurate assumptions and come to the wrong conclusion about the current state of affairs. Whether it’s anonymous or open, your employees need to feel that they’re being heard, that their opinions matter and that they’re valued members of your organization.
Get to know your employees on an individual level - they’re more than just cogs in a machine. Open up the lines of communication by letting your guard down. This will enable you to find out about their passions and life outside of work, build a rapport and establish mutual trust and respect. By removing the barrier of intimidation, employees will feel more relaxed and happy in the workplace, they will feel valued as individuals, they will be more inclined to raise issues that negatively affect their jobs, and they will be encouraged to work harder for you in a bid to maintain harmonious relations.
Avoid taking people for granted. Acknowledge hard work and dedication by showing sincere appreciation to your workforce. Job satisfaction requires more than a pay cheque and a Christmas night out - people need to feel that their contributions are important, no matter how insignificant their duties may seem in the grand scheme of your organization. One way or another, every employee plays a vital role in the success of your business. Be sure to make this clear by demonstrating employee recognition as often as possible you’ll stand a much better chance of maintaining positive relations and retaining valuable talent. A culture of ingratitude is not conducive to morale and will simply result in resentment and job dissatisfaction, not to mention recurring recruitment costs for your organization.
An ineffective workforce is simply counterproductive to success
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Preparing Your 2017 Business Strategy
2017 Plan
How to make 2017 a successful year for your business Harriet Connolly, Strategy Commentator
WITH 2016 COMING TO AN END, it's time to roll up your sleeves and start preparing the business for the upcoming year. In 2017, disruption will continue to pose a threat to incumbents, so companies must ensure agility is incorporated into their strategy and across all corporate levels. Here are some of the most important strategies you will need to incorporate in order to enjoy a successful 2017. Set Goals In 2016 To Faster Execute in 2017 It's critical to start planning your 2017 strategy now, because on January the 1st, it'll be too late. A good plan takes time to create, and in order to avoid unnecessary stress and last minute amendments, all actions must be planned in detail and product needs outlined in advance. Once everyone is back to the office from their holiday breaks, it's / 14
important to prioritize goals and their completion - execute the most important ones first, and maintain the key metrics and performance indicators that you've set during strategic planning in 2016. Planning in advance is the same as sowing seeds at the right time - too early or too late won't bring anything but disappointment, regardless of how bright the vision of the future is. Incorporate Agility Across All Departments Agility is vital as it allows businesses to continue growing whilst protecting their valuable assets from disruption. To integrate agility across all strategic efforts and to meet the demand of changes in corporate culture and the external environment, incumbents must recognize how you can learn from it. Decision-making is among the most important qualities to learn, but
Avoid treating growth as the only way to survive as, although growth looks good on graphs, companies can get into trouble when they grow too fast
It's important to prioritize goals and their completion - execute the most important ones first, and maintain the key metrics and performance indicators that you've set during strategic planning in 2016 it must be of the right type. From C-suite to entry level employees, all must develop fast reactions to the warning or opportunity signals. Embrace global capability model to show your team that nothing is impossible. Start with outsourcing the budget for your team’s training needs, including the global curriculum which can open corporate minds to the realities of the globalized world, and help them to understand how to act in the environment of a continuous change. Agile training across multiple departments can ease management processes as the team can grow familiar not only with the set targets, but they can also acquire a deep understanding of a company's vision, and learn how to better prioritize what's truly important for the business. Let Employees Contribute To Strategic Planning
Don't Focus On Growth Just For The Sake Of It Every new year is the start of a new chapter, so it's important to look at it from a positive angle associated with opportunity, rather than treating it as another round of challenges. The same is true with growth, as the way a company focuses on growth determines the end result. Avoid treating growth as the only way to survive as, although growth looks good on graphs, companies can get into trouble when they grow too fast. The inability to keep pace with the business expansion, product line, and management can cause serious complications and devalue the good meaning of growth. By making sure your 2017 strategy is in place in advance, if revenue and earnings skyrocket/nosedive, a company will be capable of handling the situation.
Even though it's the C-suite who sets the tone for a business strategy, employees are the ones who practically make the execution happen. So why not let them participate in strategic planning processes too? If the top-down and bottom-up communication is in place, strategic planning is more likely to bring results. This creates transparency within the company, and all ideas are welcome and taken into consideration regardless of the job titles. Often, companies struggle to execute strategies because they lack the fresh vision of the industry and business operation. Thus, it's worth listening to what employees have to offer. Participation can be in forms of feedback surveys, focus groups, and face-to-face meetings.
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The Sharing Economy Boom The peer-to-peer exchange of services is set to transform both work and ownership Charlie Sammonds, Assistant Editor
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As people are afforded a greater access to information, they are unsurprisingly more trusting of, and persuaded by, reviews over traditional advertising THE SHARING ECONOMY HAS EXPLODED over the last few years, and the implications of this technology-driven economic model are beginning to be properly realized. From eBay to Airbnb, consumers are increasingly more comfortable interacting directly with one another, offering services ad hoc and saving on costs as a result. As people are afforded a greater access to information, they are unsurprisingly more trusting of, and persuaded by, reviews over traditional advertising. Consumers can now bypass traditional marketplaces - ‘cutting out the middle man’ if you like - instead accessing a decentralized model of distribution that essentially creates more opportunities for everyone, whilst stripping power from some corporations. Technology evens the playing field between these corporations and individuals and, as a result, the market is now more hyper-competitive than ever. The more optimistic commentators see the economists’ theory of ‘perfect competition’ as edging closer to reality, the opposite of a monopoly as individual buyers and sellers become so numerous. Peer-to-peer startups are springing up in just about every service industry you can imagine, and even the likes of Uber are under threat from more direct models. SideCar, for example, was an app that went one step further than the archetype of disruption that is Uber, allowing ‘regular’ drivers to pick people up en route, a digital hitchhiking system that turned every car journey into a potential moneymaker. Side-
Car folded at the turn of the year, something many attribute to it being ahead of its time; the user experience was clunky and it lacked the ease of Uber or Lyft and the more fluid model came perhaps a little too soon for a burgeoning market. Perhaps the most interesting of the myriad share economy pioneers, though, are startups like TaskRabbit and Zaarly. Rather than providing one service - a lift, a food delivery, a cleaner - these apps cater for more general skills. The TaskRabbit app matches those who need a plumber, a gardener, a delivery driver, or a locksmith, for example, with a professional, depending on when the customer wants the work done and their location. Naturally, reviews play a huge part in the workings of the app and consumers will feel comfortable as a result. These apps are fascinating because they allow anyone to become a freelance worker. Users can earn money doing shopping for other users, delivering parcels, or walking dogs; a marketplace of services only curated, rather than managed, by an overarching body. It’s the notion of sharing services and resources with others for a fee that underpins what could well be the future of the economy. The automobile is a good example - soon, it’s feasible that very few people will actually own cars, particularly within urban areas. Rather, people will have access to cars. It’s a crucial distinction, as we move toward an economy where ownership is less of a central tentpole, one where access is the key concept.
It’s the notion of sharing services and resources with others for a fee that underpins what could well be the future of the economy. / 17
And access to the internet is another good example - startup Fon allows users to ‘get free access to the world’s largest WiFi network’ by virtue of opening their own up to other users. The scope of a project like this is immense, and the logistics are complex. Even so, the notion of a singular WiFi network shared by all is what many might consider utopian, in the same way that the urban population having access to the thousands of cars that line the streets unused makes a lot of sense on consideration. The emerging boom is causing mayhem in UK tax. In March this year, the UK government announced a tax break specifically to cater for the sharing economy, allowing people to earn £2,000 before paying any tax from sites like Airbnb and eBay. This break only comes into effect in 2017, though, and the Telegraph has reported that the number of late tax returns will be pushed above one million for the first time ever, as people struggle to calculate how much they owe. It’s a temporary issue, but one that reflects just how much of an impact the sharing economy is expected to have on the wider economy - will tax have to be significantly recalibrate to cater for the growing number of people making their money through less ‘official’ channels? Details aside, the sharing economy, in its current state, will eventually permeate other industries, and it could be set to revolutionize the way we work. Why should a writer ever be given a staff job if freelancing becomes the norm in the industry? Why would an interior designer be contracted to a company when they can find work in their area themselves? The scope of the sharing economy is vast, and we’re just at the beginning of a major shift.
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Design Thinking: Learn About Your Customer To Foster Creativity In the current business environment, incumbents must ensure they have the right mindset to innovate
Those who decided to put innovation on hold and wait for better market conditions failed, because in the current business environment, misse
Nathan Meyer, Head of Strategy
OVER THE LAST DECADE, the global market has seen a significant increase in the number of new products and services, which further boosted competition across all industries. Some companies have focussed on improving customer experience by adding new features, others have chosen aggressive strategies orientated on disrupting and creating new markets. Those who decided to put innovation on hold and wait for better market conditions failed, because in the current business environment, missed opportunities mean death.
There have also been those who entered the market but remained unnoticed, despite numerous innovative efforts. They usually come up with the prototype first and only then attempt to convince customers about the uniqueness and importance of their product. But let's face it, people are more likely to get excited about the new IoT refrigerator that can order them groceries online, rather than the new inbuilt water dispenser that makes ice cubes shaped like hearts.
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Often, products fail because companies fail to answer the main question before launching their products: Why would a customer prefer our product over our rival's? There is a direct correlation between innovation and customer experience, so, if the latter don't see the point, then regardless of the amount of advertising, the product will still be doomed. So, today, more companies review their visions, and that's how design thinking took hold of the innovation space. Design thinking is a methodology that helps innovators to solve a specific issue with their product. The approach is based on reframing and exploring the core of the problem, allowing decision makers to foster creativity, rather than using rational and logical approaches. Often, products fail because companies fail to answer the main question before launching their products: Why would a customer prefer our product over our rival's? According to the Global Human Capital Trends 2016 survey by Deloitte, many companies struggle with creative thinking when it comes to creating effective customer-focused strategies, with 84% of the respondents called for improved organizational learning, with 44% believing the need to be urgent. The leading academic centers, including Stanford, Yale, and Georgia Technology University have already integrated design thinking into their education programs, but there is still a long way to go until the approach reaches all audiences. A design mindset is solution and action orientated, instead of being problem-focused. With design thinking, it's easier to create a
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forecastable future around the new product, and avoid actions based on gut feeling alone. Design framework can be acting both as a business strategy and one of the R&D initiatives, depending on the problem practitioners are trying to solve. The framework of design thinking consists of empathizing, defining, ideating, prototyping, and testing. Creativity itself can't be structured or forced by rules, so even though design thinking has a framework, the concept promotes experimenting with the stages, order, and indeed any of its elements. The practice can even exist in the form of internal courses applied across all corporate departments, where the aim is a deep understanding of the customers' needs and translation of creativity into measurable results.
A design mindset is solution and action orientated, instead of being problem-focused. In design thinking, the problem is identified by asking and framing the right questions, and answers then accelerating the process of ideation. Ideation involves opting out from the solutions that may have been used before, or which do not contain an innovative element. Product-wise, the approach suggests a fail-positive attitude, but practitioners need to ensure they recover fast. Failure or success appear from experimentation with ideas, and allow people to identify why exactly a customer may be interested in buying and using a new product. As a result, whether it's an R&D lab, creative department, or a team of executives - practitioners of design thinking spend less time planning and discussing, and more time practising and prototyping solutions. A lack of innovation within a company creates a serious risk of missing out on opportunities in the market. As the competition is unlikely
to slow down in the upcoming years, it's critical for companies to stay as dynamic as the market they operate in. The path to innovation is always challenging and even the best of the professionals can get stuck with their creative flow. However, with the design mindset and a good customer understanding, creativity can truly be fostered and translated into forecastable results.
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Catch Me If You Can: Millennials And Their Brand Loyalty How can brands retain millennials?
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Emma Taylor, Strategy Observer
Let's face it, millennials are taking over the customer profile in the retail world. Those born between 1980-2000 have become the biggest generation in the US history, with 92 million people representing the group, according to official census data. For retailers, targeting millennials is like sitting on a goldmine, considering that the group is also the most brand loyal. With this in mind, though, branding strategy is not becoming easier.
Today, competition between brands is nothing but intense. Unlike in the past, having a pretty logo and offering a loyalty card no longer means a customer will come back, especially a millennial. Only 20 years ago, marketing campaigns were rather limited due to the infancy of digital technology. Solutions that appeared with the rise of it (e-commerce, social media platforms, analytics platforms) were expected to ease and accelerate relationships with the customer, but as marketing campaigns have evolved to the more sophisticated digitally-driven form, so has the customer behavior. Pushing a product through email or social media has seen marketers achieving great results, but as millennials' attention spans are much shorter than those of baby boomers, aside from just approaching them though the digital world, there must be another factor to make them genuinely want to find out more about the product. To achieve this, any type of content or tool that a marketer uses for communication must have a personal touch. Research conducted by American Express has found that 48% of millennials expect a personalized approach in their interactions with businesses.
Personalization drives loyalty, so effective loyalty programs are critical, where the good ones are always able to recognize customers' wants and needs. Before narrowing the strategy to consumers' personal preferences and interests, a company needs to find out about them. Whether it's a newsletter, offer email, or a direct communication - personal greetings are crucial to start with. Secondly, with millennials, gone are the days when people went shopping to actually purchase something. Generation Y like learning about the product, associated trends, and the benefits of it - before they open their wallet. Thus, it's not enough to only have a product and offer on hand - the brand has to have a story around it and encourage potential customers to participate in it. From this, retailers would be able to take a fresh look at the definition of loyalty, where the customer engagement drives great results.
millennials are likely to share details of their recent purchases and experience on social media channels. So whether it's sharing a new bag on Snapchat or creating a tutorial about new makeup products, customers can essentially do all the marketing for marketers. To increase the popularity of the product, it is particularly useful to create relevant hashtags and ask customers to share their insights. For even faster results, it's worth identifying and contacting 'high' social media profiles about collaboration opportunities, as well as giving away products for product reviews. This approach flips the traditional marketer-customer relationship, putting the customer in the role of marketer.
Millennials are, as a group, social media experts, and it's worth harnessing these skills for a brand's good. As much as they like expressing their opinions, they also like being recognized by having a big profile of followers and online popularity. The American Express research also found that 59% of
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There are probably of definitions the single job of Head of Innovation and any withemployee, them dozens of perspectives What would happendozens if a company fundedfor every new product idea from no questions asked? on it should beAdobe done.did Without anythat. official credentials the Randall subject will I was asked give my personal account As how an experiment, exactly In this session,on Mark share thetosurprising discoveries of running an in innovation team in the of an innovation-hungry organisation that started on the highfor street Adobe made creating Kickbox, thecontext new innovation process that’s already becoming an industry model and has innovation. grown to employ 16,000 people overa 80 years. In red the box pastpacked year orwith so Iimagination, have learnedmoney that when comes igniting Each employee receives mysterious and ait strange to innovation culture trumps everything and there really aren’t any rules. In order to get by, I stick some guiding game with six levels. Learn why the principles behind Kickbox are so powerful, why Adobe is opentosourcing the principles and lots gutany feel. Join me forcan an honest andprinciples straightforward perspective entire process andof how organization tap these to ignite innovation.on a modern job without a Mark Randall's serial entrepreneurial career conceiving, designing and marketing innovative technology spans nearly 20 years and three successful high-tech start-ups. As Chief Strategist, VP of Creativity at Adobe, Mark Randall is focused on infusing divergent thinking at the software giant. Mark has fielded over a dozen award-winning products which combined have sold over a million units, generated over $100 million in sales and won two Emmy awards. As an innovator, Mark has a dozen U.S. patents, he’s been named to Digital Media Magazine’s “Digital Media 100 and he is one of Streaming Magazine’s “50 Most Influential People.”
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