Previous Next

Articles

July 15, 2008

DavidNour.jpg

 

When Women In Information Technology wanted to empower its members to have better working relationships with colleagues, this organization invited David Nour, managing partner of The Nour Group,  to be a guest speaker. At the time, Siemens, Marriott, and IBM have also sought out his consulting services. Nour's firm helps organizations develop relationship-centric goals and objectives, as well as to train people to improve their human interaction skills. Nour calls this more sophisticated, version of social networking relationship economics. In fact, John Wiley & Sons published Nour's book, Relationship Economics.

 

Nour's work goes beyond how to leverage existing relationships to get things done. He's working on a concept called influencing without authority which would enable line managers to get help from their vice president's team.  Nour's consulting work also extends to e-social networking. He has written a guide to LinkedIn and is taking Second Life very seriously.

 

Nour has racked up some relationship economics kudos.  In 2005 he was named to Georgia Trend’s 40 Under 4", Atlanta Business Chronicle’s Up and Coming and Who’s Who in Atlanta Technology Awards. Articles about Nour have appeared in The Wall Street Journal and The New York Times.

 

Recently, enterpriseleadership.org sat down with Nour to learn more about how IT professionals can apply some of his relationship economics methodologies. Here's what he had to say:

 

EL: Why should professionals, such as CIOs, be concerned about relationship economics?

 

DN: I recently spoke before 200 people at the National Association of State CIOs about the strategic value of social networking.  Of the 50 state CIOs in the room, the 40 who I spoke to told me that they had never thought about social networking as relationship economics.

 

Specifically, relationship economics is the art and science of relationships. It can help you, as an individual, as a team, or as an organization more efficiently and more proactively to identify, to build nurture, and to leverage relationships to get things done. Improving other people's lives provides the foundation for this process. It can yield a real economic outcome you can quantify. For example, on any given day at work, you could talk with 50 different people. You don't have the bandwidth to invest in all of your relationships equally. How do you prioritize which relationships you want to invest in?

 

EL: What are the different ways people approach social networking?

 

DN: I talk about three types of networkers: givers, takers, and investors. Givers do things out of altruism.  Takers reach out to you when they want something. For example, if a CIO is looking for a job, he or she will actively network to find influential people who can open doors. Once this CIO gets a job, you might never hear from this person again. If you hear from someone like this several years later, don't be afraid to call them on it by saying, 'When was the last time you called to see how I was doing?' The investor takes the time to cultivate a relationship. We call this relationship currency because you give your knowledge, your talents, your time, or your access to an influential resource.

 

Although many people might invest in a relationship, they face the challenge of how to identity, to measure, and to leverage about investments. Relationship economics provides the discipline process they need as a relationship investor.

 

You wouldn't pick a stock in a company because you liked the logo design.  Most people walk into a relationship blindly. They do very little due diligence of the relationship bank. They also do a terrible job leveraging those relationships to get things done.

 

EL: How can CIOs begin to nurture relationships with leaders in business units?

 

DN: I've written about the top 10 reasons why most networking doesn't work, and  what five relationship-centric mistakes most executives make. CIOs, like other professionals, need to realize that relationships aren't a standalone concept. Instead, relationships can enable things. Most relationship development doesn't work because it's haphazard and reactive. You don't go through the process of what's your purpose for doing this. You don't ask yourself these questions: What are my goals? What's my plan for nurturing, building, and investing in this relationship?

 

You have to first identify the purpose for your relationship-centric goals. Why are you trying to build relationships? For example, you might say: 'I need to improve the relationship with a divisional leader who is the biggest customer for IT.' Now you have a purpose.

 

EL: What questions should CIOs be asking themselves?

 

DN: When faced with a challenge, most CIOs ask the following questions: What do we need to do? How are we going to do it? What's the process?

 

On the other hand, they also need to ask about who they need, who they know, and how do they leverage both of their internal and external relationships to get things done. How do they go about doing this? They can start by identifying what some of those relationship-centric goals. They need to start identifying for what purpose, and for what goals -- as an individual, as a team and as an entire organization -- they need to nurture and to build those relationships.

 

We call these resources pivotal contacts, those individuals who can help you to accelerate and to achieve your goal. They've walked in your shoes, and might have experienced the pitfalls you might encounter. Many CIOs come into a new role or into a new project thinking they can reinvent the wheel. If you start by asking whom do I need as pivotal contacts, you have just saved yourself a lot of time, resources, and wasted cycles.

 

EL: Why do most professionals have a terrible time reaching out to people whom have played an important role in some aspect of their life?

 

DN: We operate under the premise that most people do a terrible job getting their arms around and analyzing their existing or past relationships. For example, you spent several years working with key executives at a Fortune 100 company. Why can't you use them as your own board of advisers? I'm still in touch with my college professors, and people at IBM I worked with 20 years ago. Most people make the big mistake of allowing those incredibly valuable relationships to fade.  Most people also do a terrible job of analyzing and measuring their relationship bank.

 

EL: Why do a few people benefit from professional organizations, while many others see them as a waste of time?

 

DN: Many professionals don't think about return on involvement. They miss the best asset in their portfolio of relationships. Diversity!  It has nothing to do with how many people you know. It has everything to do with how diverse your portfolio of relationships is.  If you keep hanging out with the same few people you've always known, that's about as far as you're going to get.

 

You can determine quality by business stature, rank, and influence. Some people call this influence map. You need to focus on constantly raising the bar on the business stature of the people you engage. This process is key to that relationship bank analysis.

 

Some people belong to several professional organizations, but they seldom show up for a meeting, or they show up when the program is just starting. If they showed up an hour before the event started, they would've had the chance to engage the audience that's there. Most people gather for two reasons: content and community. Ask yourself: Why am I going there? What am I going to get out of it? Who else is going to be there? How can I get the most out of this investment of time and effort? Most people show up, put on a badge, and then wonder why they aren't getting anything out of it.

 

EL: So how what can you do to get more out a professional membership or a professional venue?

 

DN: You need to pick fewer organizations, and get deeply involved with then. As a CIO, you can take a leadership role by getting your team involved on a subcommittee to research a particular topic. You need to do this without a hidden agenda. If you work hard, the spotlight will shine on you. The well-established people in the organization will thank you for your contribution. They will want to know more about you and, in turn, you will get to know them. An officer might even ask you to be on the organization's board of directors.

 

EL: What is your feeling about Web-based social networking?

 

DN: We researched 400 different social networking sites in nine different categories. Social networking technologies have the potential of defining the basic tenets of business-to-business interaction moving forward. For example, LinkedIn has 15 million members from 150 different industries. Some senior executives of Fortune 500 companies have profiles on LinkedIn.

 

At the turn of the 20th century, there were 200 auto makers in the U.S. E-social networking today faces a similar challenge of too many players with little value-added differentiation. Besides LinkedIn, you have Zoom Info, Spoke, JigSaw, and Visible Path. Some of these companies have clever niche applications or tools, but a tool doesn't make a platform and a platform doesn't make a company. Eventually, we'll see either a mass consolidation of them or their demise. Some of these companies were poor investments. Kleiner Perkins put a lot of money in to Visible Path. This company has had about four CEOs, and has changed business models several times. Venture capital firms can't continue to throw money at companies that don't have a viable revenue model.

 

EL: How do you feel about Second Life as a networking vehicle?

 

DN: This interesting one will allow people to collaborate. That's the real value of Second Life. The technology has moved from the gaming industry to the business use of building avatars and having an alter ego. Linden Labs, which runs Second Life, pulled the plug on its big moneymaking porno offering, and is now focusing on business users, such as IBM and Xerox. These companies want to leverage Second Life for things such as simulation-based training.  Members of Generation Y won't focus very well if they have to sit through a 14-page case study analysis. However, they will get involved in an online simulation. Armed with a library of business scenarios, you can change that simulation and put them in difficult situations, almost like what medical professionals so through in surgical simulations.

 

Author: Elizabeth M. Ferrarini - She is a technology writer from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

| More
1,002 Views 0 Comments 0 References Permalink Tags: article, best_practices, networking, relationship_economics, second_life, social_networking

BernSchmitt.jpg

 

Marketing. Information Technology. Engineering. If companies truly want to succeed, then people from different disciplines within those organizations need to work together to develop competitive strategies. Bernd Schmitt, the Robert D. Calkins Professor of International Business at Columbia Business School, says they also need to become big, bold thinkers. Schmitt has called the concept Big Think, an innovative approach to thinking, creating business models, and marketing. Schmitt says, "Big Think enables business leaders to stay relevant, infuse their companies with fresh, revolutionary ideas, leaving competitors scrambling."

 

Schmitt's latest book, Big Think Strategy, outlines how companies such as MySpace, IBM, Apple, Whole Foods, and General Motors have benefited from Think Big strategies. Schmitt has either authored or co-authored seven books, including the acclaimed Experiential Marketing and Customer Experience Management. He has done consulting work for Eli Lilly, Volkswagen, Siemens, and Vodafone.

 

Recently, enterpriseleadership.org sat down with Professor Schmitt to learn more about how IT professionals can become Big Thinkers. Here is what he had to say:

 

EL: Can you briefly summarize the  differences between Small Think versus Big Think?

 

BS: Small think sets in when middle managers become very risk adverse. They use the same old procedures, checking everything with a step-by-step analytical approach. Before they can launch a new venture, they have to double check with their superiors, and they're afraid to do anything new and innovative.

 

On the other hand, Big Think is about visionary leadership, thinking out of the box, and taking risks. This leadership style has certain kinds of thinking, such as looking into the future, and doing things differently from what is happening currently in your industry. Big Think is also a behavioral style. You manage projects by focusing on making a major impact on the marketplace, and looking at where you want to take things in the future.

 

Many companies, which start with an entrepreneurial spirit often, get  stuck doing the same procedures repeatedly.

 

EL: What are some of  the Big Think strategy types?

 

BS: Big Think has four strategy types. With integration, you add seemingly incompatible concepts, proving they're really compatible. For example, amazon.com demonstrated it could offer great customer service without the need for a human touch. Opposition assumes a contrarian viewpoint. For example, Dove's advertising campaign for real beauty celebrates older women, not the 20-something perfect models. Essence takes the essential characteristic of a strategy to an extreme. For example, Wal-Mart uses it massive distribution system to keep driving down costs. Transcendence goes beyond the established boundaries. The Blackberry is an example of transcendence.

 

EL: Some companies say they that innovation is built into their culture, but some of these companies can't score more than one homerun. Why?

 

BS: The executive team communicates corporate culture, which can be key to innovation. However, this team has to keep getting the innovative message out, even after the company has a major breakthrough. Take Motorola's very successful Razr cell phone. It had a great product launch. On the other hand, what else is happening at Motorola?  Organizations that have one innovative success don't necessarily have Big Think cultures. Many of these organizations are lucky enough to have a very energetic team behind the innovation.

 

EL: How do you create a  Big Think culture?

 

BS: To create a corporate culture to sustain Big Think, organizations need to hire people from a diverse talent pool, to provide them with the right environment, and to set up teams and to provide them with challenging projects. Organizations need to stimulate these people mentally so they'll get excited about taking the projects forward.

 

I've worked with many siloed organizations. When I do a project on Big Think and innovation, I always set up cross-functional teams. Research shows that innovation can benefit from cross-functional teams.  However, most companies lock cross-functional teams in siloes. Government agencies know the benefit of using cross-functional teams or multidisciplinary teams for solving problems such as global warming.

 

EL: Can you provide an example  of the innovative ideas developed by a cross-functional team you set up?

 

BS: I've done many projects with Vodafone in Europe. We put together cross-functional teams of Vodafone people from IT and marketing. These teams started with a project WOW initiative that was suppose to create innovative ideas that could delight customers. One particular project focused on developing more innovative mobile phone services, but also providing more innovative treatment of customers in the call center, on the Web site, and in the stores.

 

For example, Vodafone in Portugal came up the pizza delivery concept of getting a new cell phone. The goal was to get a cell phone into a customer's hand within a half hour after they called in. With a GPS, the company could track where the customer is, and have a representative get on a motorbike and deliver the phone to the customer. The representative could explain the phone's feature to the customer, as well as to synchronize information from the customer's old telephone to the new one.

 

EL: Can you provide another example of a company that has  benefited from your Think Big strategy?

 

BS: Samsung is doing very well these days with its brand.  A few years, Samsung Electronic offered poor quality projects in the U.S. That company made a major change to improve the quality of its product. In fact, in some ratings Samsung has surpassed its key competitors, such as Sony, in innovative product design and quality.

 

Samsung has also focused more on the consumer experience rather than just their products and technologies. How did this happen? A few years ago, the chairman of Samsung set up cross-functional teams comprised of people from marketing, product design, and information technology. These teams went around the world studying how consumers in different parts of the world live, and what kinds of products they needed for their homes and their work. We've seen a dramatic success here. Samsung has aligned its new initiative, called creative management, with Big Think. Now that Samsung has an edge on its competitors, it has to figure out how it will stay ahead through continuous innovation.

 

EL: What affect does timing and marketplace trends  have on Big Think ideas?

 

BS: Big Thinking is not just about having this big idea, but you have to take it to the marketplace. Big Think ideas very often work best if they click with some trend that's happening in the current consumer environment.  Take the wellness trend, which has caused an explosion in spa services and in spa products, which have unusual ingredients no one heard about 10 years ago. If you want to come up with an innovative skincare product line or some new spa massage services, you have to do it fast. These trends come and go. Who knows if American consumers in five to 10 years will want to go to spas. You have to cut the bureaucracy and other things that are preventing bold ideas to come about.

 

EL: Can you  briefly summarize the differences between Small Think versus Big  Think?

 

BS: Small think sets in when middle managers become very risk adverse. They use the same old procedures, checking everything with a step-by-step analytical approach. Before they can launch a new venture, they have to double check with their superiors, and they're afraid to do anything new and innovative.

 

On the other hand, Big Think is about visionary leadership, thinking out of the box, and taking risks. This leadership style has certain kinds of thinking, such as looking into the future, and doing things differently from what is happening currently in your industry. Big Think is also a behavioral style. You manage projects by focusing on making a major impact on the marketplace, and looking at where you want to take things in the future.

 

Many companies, which start with an entrepreneurial spirit often, get  stuck doing the same procedures repeatedly.

 

EL: What are some of  the Big Think strategy types?

 

BS: Big Think has four strategy types. With integration, you add seemingly incompatible concepts, proving they're really compatible. For example, amazon.com demonstrated it could offer great customer service without the need for a human touch. Opposition assumes a contrarian viewpoint. For example, Dove's advertising campaign for real beauty celebrates older women, not the 20-something perfect models. Essence takes the essential characteristic of a strategy to an extreme. For example, Wal-Mart uses it massive distribution system to keep driving down costs. Transcendence goes beyond the established boundaries. The Blackberry is an example of transcendence.

 

EL: Some companies say they that innovation is built into their culture, but some of these companies can't score more than one homerun.  Why?
BS: The executive team communicates corporate culture, which can be key to innovation. However, this team has to keep getting the innovative message out, even after the company has a major breakthrough. Take Motorola's very successful Razr cell phone. It had a great product launch. On the other hand, what else is happening at Motorola?  Organizations that have one innovative success don't necessarily have Big Think cultures. Many of these organizations are lucky enough to have a very energetic team behind the innovation.

 

EL: How do you create a Big Think  culture?

 

BS: To create a corporate culture to sustain Big Think, organizations need to hire people from a diverse talent pool, to provide them with the right environment, and to set up teams and to provide them with challenging projects. Organizations need to stimulate these people mentally so they'll get excited about taking the projects forward.

 

I've worked with many siloed organizations. When I do a project on Big Think and innovation, I always set up cross-functional teams. Research shows that innovation can benefit from cross-functional teams.  However, most companies lock cross-functional teams in siloes. Government agencies know the benefit of using cross-functional teams or multidisciplinary teams for solving problems such as global warming.

 

EL: Can you provide an example of the  innovative ideas developed by a cross-functional team you set up?

 

BS: I've done many projects with Vodafone in Europe. We put together cross-functional teams of Vodafone people from IT and marketing. These teams started with a project WOW initiative that was suppose to create innovative ideas that could delight customers. One particular project focused on developing more innovative mobile phone services, but also providing more innovative treatment of customers in the call center, on the Web site, and in the stores.

 

For example, Vodafone in Portugal came up the pizza delivery concept of getting a new cell phone. The goal was to get a cell phone into a customer's hand within a half hour after they called in. With a GPS, the company could track where the customer is, and have a representative get on a motorbike and deliver the phone to the customer. The representative could explain the phone's feature to the customer, as well as to synchronize information from the customer's old telephone to the new one.

 

EL: Can you provide another example of a company that has  benefited from your Think Big strategy?

 

BS: Samsung is doing very well these days with its brand.  A few years, Samsung Electronic offered poor quality projects in the U.S. That company made a major change to improve the quality of its product. In fact, in some ratings Samsung has surpassed its key competitors, such as Sony, in innovative product design and quality.

 

Samsung has also focused more on the consumer experience rather than just their products and technologies. How did this happen? A few years ago, the chairman of Samsung set up cross-functional teams comprised of people from marketing, product design, and information technology. These teams went around the world studying how consumers in different parts of the world live, and what kinds of products they needed for their homes and their work. We've seen a dramatic success here. Samsung has aligned its new initiative, called creative management, with Big Think. Now that Samsung has an edge on its competitors, it has to figure out how it will stay ahead through continuous innovation.

 

EL: What affect does timing and marketplace trends  have on Big Think ideas?

 

BS: Big Thinking is not just about having this big idea, but you have to take it to the marketplace. Big Think ideas very often work best if they click with some trend that's happening in the current consumer environment.  Take the wellness trend, which has caused an explosion in spa services and in spa products, which have unusual ingredients no one heard about 10 years ago. If you want to come up with an innovative skincare product line or some new spa massage services, you have to do it fast. These trends come and go. Who knows if American consumers in five to 10 years will want to go to spas. You have to cut the bureaucracy and other things that are preventing bold ideas to come about.

 

EL: What  personal characteristics do people need to have or to develop if they want to be  successful Big Thinkers?

 

BS: The key thing is to create something that's exciting and new. When I work with companies, we always do creativity exercises. It's just not the analytical side you need to appeal to. Whenever I discuss what's required to get someone to be a Big Thinker, I mention having a lot of guts because many people might perceive your ideas as risky and want to kill them. If anything needs to be killed, it's those sacred organizational cows. You need to come up with alternative current processes. That takes guts. It also takes passion and perseverance to see a project completed. As a leader, you also need to expose yourself to many different things. Most company people are very narrow-minded and are only interested in certain things. They are experts at some things, but they don't often see the bigger picture. As individuals, they don't expose themselves to different things, such as sports, museums, or travel. When you're on a business trip, just don't sit in your hotel room. Try to see what's outside. Some creative ideas might emerge.

 

EL: What role can IT departments  play in innovation or enhancing a company's brand if  any?

 

BS: I've seen IT departments that have done a tremendous job of helping call centers better understand the needs of customers.  Call center representatives need to have at their fingertips all of the relevant customers information. The challenge is how do you turn a transactional approach into a true CRM. Most call center systems have nothing to do with building relationships, they are purely transactional.  Say a call center person has access to a database service that shows, not only when the customer bought the product, but also what concerns a customer had when he or she last called, and what suggestions that customer received. An integrated database system like this can help increase brand awareness because it provides a way to connect emotionally with customers.
What personal characteristics  do people need to have or to develop if they want to be successful Big  Thinkers?

 

The key thing is to create something that's exciting and new. When I work with companies, we always do creativity exercises. It's just not the analytical side you need to appeal to. Whenever I discuss what's required to get someone to be a Big Thinker, I mention having a lot of guts because many people might perceive your ideas as risky and want to kill them. If anything needs to be killed, it's those sacred organizational cows. You need to come up with alternative current processes. That takes guts. It also takes passion and perseverance to see a project completed. As a leader, you also need to expose yourself to many different things. Most company people are very narrow-minded and are only interested in certain things. They are experts at some things, but they don't often see the bigger picture. As individuals, they don't expose themselves to different things, such as sports, museums, or travel. When you're on a business trip, just don't sit in your hotel room. Try to see what's outside. Some creative ideas might emerge.

 

EL: What role can IT  departments play in innovation or enhancing a company's brand if  any?

 

BS: I've seen IT departments that have done a tremendous job of helping call centers better understand the needs of customers.  Call center representatives need to have at their fingertips all of the relevant customers information. The challenge is how do you turn a transactional approach into a true CRM. Most call center systems have nothing to do with building relationships, they are purely transactional.  Say a call center person has access to a database service that shows, not only when the customer bought the product, but also what concerns a customer had when he or she last called, and what suggestions that customer received. An integrated database system like this can help increase brand awareness because it provides a way to connect emotionally with customers.

 

Author: Elizabeth M. Ferrarini - She is a technology writer  from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

| More
933 Views 0 Comments 0 References Permalink Tags: article, creativity, cross-functional_teams, innovation, strategy

Actions