Organisational Structures from Scratch

Starting-line

Ashley Freidlein, CEO and Co-Founder of Econsultancy wrote a recent post on the Econsultancy blog as a first take answer to the question: 'With a blank sheet, what organisational structure would you choose for marketing and digital?'. It's an interesting question, and the answer he came up with incorporated a structure that brought improved customer focus to the organisation, and integrated marketing and digital to a far greater extent with other other customer facing and support functions and roles.

I think that there are some big questions around how we design our organisations in response to the ever changing environment in which we find ourselves, and so I built on Ashley's post with a response of my own which you can read here. As you'll hopefully see, asking ourselves what it would look like if we started with a blank sheet leads to some interesting possibilities, but also the question of whether it isn't time to have a more challenging debate about how we structure organisations (particularly functions like marketing, customer experience and digital) for a digitally-empowered world. I'm interested to know what you think.


Google Firestarters Austin - Engineering Strategy - The Event

Google-Firestarters-SXSW

Saturday saw our first ever Firestarters event in Austin, held in the Google Fiber space during SXSWi. We'd themed the event around the intersection of user experience design and strategy which, judging from the audience feedback and debate on the night is rich territory for discussion right now. Perhaps unsurprising given the growth in importance of UX within both clients and agencies, and more generally how tech-savvy design resourcing, expertise and practice is in ever increasing demand (as encapsulated nicely by John Maeda's Design in Tech Report that was launched at SXSW).

Our first speaker was the brilliant Oonie Chase, Director of Experience at Wieden & Kennedy, who talked about how UX was influencing briefs in interesting and sometimes uncomfortable ways at W & K, but also how the two disciplines will likely start start from a different place - planning from the lens of the brand, UX from the customer perspective, and what they can teach each other. She used a quote by Dave Terry at W & K ("It's entirely wrong, but it's golden in its wrongness.") about UX:

Oonie-Google-Firestarters

User Experience practice challenges the idea that you need scale immediately - you might start small to acquire learnings, whilst advertising has a ‘need for glory’. UX is something that is co-created over time so not necessarily perfect. It doesn't worship creative and 'doneness' in the same way as planners do. But whilst UX can be overly focused on getting from A to B, planning can teach UX about not losing sight of the ‘soul’ and emotion of what you do. Rather than aiming for a Minimum Viable Product, perhaps it's more about achieving a 'Minimum Lovable Product'.

Chloe Gottlieb, SVP Exec Creative Director, R/GA, complimented that nicely by focusing on where planning and UX (or rather Experience Design, which is the term they prefer at R/GA) overlap. Great planners, said Chloe, are inherently creative and great Experience Designers are inherently strategic, but it's how they work together (as opposed to working in parallel) inside the agency that is becoming increasingly important. Both planners and experience designers are pattern seekers, consumed by consumers, and obsessed with culture and behaviour, but:

"While UX folk might veer more toward architecture, engineering and design - closely observing customer needs and how to add value to them over time - planners are more like poets, anthropologists, psychicians – finding tensions in culture and bringing them to light."

UX insights might lead to products, services and platforms (systems), planning insights lead to brand stories, content, comms. R/GA's own progression has amplified the overlap, growing into making more branded interactions and systems for campaigns, becoming more strategic (e.g. thinking about functionally integrated services that tied products and services together), just as planning comes from brand and storytelling towards having to create strategies that could lead to products, services or communications, and is evolving to find ways to stay involved as work is made, tested, evolved over time. 

Chloe-gottlieb-Firestarters

So it is far from binary, there is plenty of overlap, and planning and UX need each other more than ever. The intersection is where the magic happens, particularly now that most brands are primarily experienced through interfaces (in fact 'Brand is Interface'), product and message are integrated more than ever, and experiences are not separated into silos. Strategy becomes 'truth over time', requiring more system thinking, experimentation, tweaking, QA than ever before. At R/GA, getting to insights involves multidisciplinary teams working together on the problem, looking for patterns and collisions, and briefs are the crystallisation after the ideas are baked. The way they know they have a great insight is when it enables creatives to take giant leaps.

Ian Spalter, UX Lead at YouTube, added a third unique perspective. Moving to a tech company from an agency background, said Ian, meant coming to a place where big ideas are not as important as big releases, where impact is more important than inspiration, and from an environment run on creative disciplines, to one dominated by engineering. His tool set and collaborators have also changed (he counts algorithms amongst his new set of collaborators). Planners dig for insights, and uncover or manufacture a truth, and creatives make fictions (through stories and designs). So the flow of the process is that from an insight you get a big idea, and from that big idea you tell or make a story, and in software especially you create an experience for the customer. But in software the distance between creating a story and creating an experience can be a long and winding road. But increasingly both marketing and product now focus on the essentials of the experience they are trying to create at the end. This may be in a story like form, but stories illustrate a promise, and all promises are lies until we keep them. So 'planners tell awesome lies', lies we can believe in.

Ianspalter

And whilst software companies understand their customer’s behaviour, they rarely understand their customer.

Russell Davies (Creative Director, UK Government Digital Service) built on his Firestarters UK talk by focusing in on how usability increasingly trumps persuasion. In a pleasingly controversial talk, he talked about how the product is the service is the marketing, and why this meant that experience design was the future. A brilliant product will always be better than a parity product with marketing. It was once hard to produce brilliant products, but as everything becomes increasingly digitised it's easier than ever. So companies that are still set up around persuasion need to design around the needs of the user, and be set up to deliver the best experience possible. This means no new ideas until everything works ('fix the basics'). And that user experience is killing marketing since if the product is good enough there is no need to over sell it. And about how everyone should be concerned about making user experience better.

Google_Firestarters-SXSW-image

The questions and debate afterwards picked up on just how topical a subject this is right now for strategists and agencies, and we had no lack of interesting (and sometimes controversial) opinion on the night. You can see a Storify of some of the feedback and conversation here

My thanks as always to Ben Malbon and Google for hosting, to our amazing speakers who made our first Google Firestarters in Austin such a success.

Thanks to DDB Worldwide and ImageThink for images used in this post.


Mullet Strategy

The following is a notated version of a talk I gave last night at the APG Noisy Thinking event on 21st Century Strategy.

When the APG asked me talk about '21st Century Strategy' I’d not long before read Emily Bell’s brilliant Hugh Cudlipp lecture about the future of journalism. Emily talks in that lecture about the growing ‘tabloidisation’ (and not in an entirely negative way) of news output and specifically about (like the new breed of ‘digitally-native’ news organisation) news rooms that now feature optimisation desks, insight, analytics and data specialists, and even aggregation desks. A kind of journalism that is fully integrated with the social web:

‘Tabloid  or popular journalism is being done by the same outlets that produce the most serious chin-stroking think-pieces. In 2005 the Huffington Post pioneered this ‘mullet strategy’ for journalism, which looked neat and respectable at the front, wild and hairy at the back.’

I think there are many parallels that can be drawn between the challenges faced in the practice of journalism, and those in the craft of strategy. But I think you can’t really talk about the future of strategy or planning without talking about the future of agencies. And the context in which agencies are now operating is of-course shifting dramatically. It’s a context that threatens the very lifeblood of our clients. Work done by Professor Richard Foster at Yale University showed that the average lifespan of a company in the S & P 500 had declined from 61 years in 1958 to 18 years today.

Data from IBM has shown that the majority of marketers believe that their roles will change in the short and mid-term, and a sizeable minority believe that they need to actually reinvent their roles (yet comparatively few know how). Small wonder when technology provision in just the marketing sector alone (let alone all the other vertical functions in a business) is exploding, marketers are increasing talking about the ‘marketing technology stack’, and the most exciting things for them in both the short and longer-term are creating joined-up customer experiences and this thing called content marketing.

Could we have imagined a few years ago that a consumer electronics manufacturer (GoPro) would have already garnered over three quarters of a billion views on YouTube, a soft drinks manufacturer would have 700 people (larger than many media owners) in a building in Austria devoted to nothing but content, or that Amazon could get so adept at customisation that it is serving up different content to every one of its 250 million odd monthly active users, or that a company (Facebook) could completely transform its revenue base from a standing start in little more than two years, or that a search engine gets so good at using data that it can understand the nuanced context of how we talk about something to give us a better answer to our question.

But as I said before, the future of strategy is closely intertwined with the future of agencies. Drawing on the work I did for The Progression of Agency Value project, repurposing Gilmore and Pine’s Economic Value model gives us a good model for understanding that the future of agencies, and therefore strategy, will be about progressing from providing services toward delivering value through experiences and ultimately about helping to affect transformations or changes in the client organisation itself. We seem to ask the ‘What is Strategy?’ question a lot, and I wonder if it’s because whilst the fundamentals of what strategy is remain the same, the context for how it is deployed is always shifting. Lawrence Freedman’s definition talks about strategy as a fluid, flexible, continuous thing that responds to unforeseen situations. Noah’s thought about strategy really being about building algorithms (rules) that help drive optimal outcomes in decisions is good because it takes account of the fact that humans are critical to designing those rules, and that algorithms are constantly being updated to take account of evolving environments. So clever ways of putting people together with technology will always win.

Columbia Business professor Rita Gunther McGrath (in ‘The End of Competitive Advantage’) talks about how organisational strategy is shifting from maintaining sustainable competitive advantage to building a series of transient advantages, which in turn has implications for the fluidity with which you allocate talent, organising resources around opportunity rather than existing structures, continuous innovation, continuous experimentation and a ‘fast and roughly right’ approach. This, and the increasing convergence of strategy, innovation and transformation creates opportunity for agencies and for strategy. And if strategy is increasingly starting to look like innovation which is starting to look like transformation, then the interesting places are in the overlap between planning, service and experience design, and organisational change.

The exemplar of GAFA and their ‘vertical stack’ approach shows the possibilities of creating user-centric systems that use data to join up customer experience, taking value from interaction at one touchpoint and using it to enhance the experience at another touchpoint. So opportunity exists at the centre (optimisation, automation or augmentation through creativity, of BAU or core services and functions), and at the edges where innovation happens (emerging understanding, set-up and design of the new). But all of this, as the Cap Gemini/MIT Sloan study shows, requires us not to pursue shiny new technology for the sake of it but to always remember the value of the skills, behaviours, culture and leadership that surrounds it.

My final thought was about Sturgeon’s revelation that 90% of everything is crap. There’s a lot of crap advertising around. There’s a lot of crap content marketing. When it’s so easy and cheap to create stuff and put it out there, more than ever the role of the planner/strategist is to stop stuff being crap.  

So 'Mullet Strategy' is about being neat and respectable at the front (creating exceptional joined-up experiences and good campaigns based on great insight, strong creative ideas - and not being crap). And it’s about being wild and hairy at the back (working with clients to create continuous, responsive interactions and experimentation that might generate new learning, improve capability, and ultimately change the organisation itself - and of-course, not being crap). In this way, and in reference to Oliver Burkeman’s wonderful piece in The Guardian about how 'Everyone is totally just winging it, all the time', perhaps we just need to join with our clients in winging it a bit more.


Google Firestarters Comes to Austin

FirestartersNYC

I’m delighted to announce that Google Firestarters is coming to Austin. Firestarters has always been about combining the most compelling speakers with provocative debate around the most interesting industry issues amongst the most inquisitive and restless minds in strategy and planning. So it’s fitting that we’ll be taking that debate to the most well known interactive conference of them all.

Working with Ben Malbon and his team at Google we’ll be running an event on Saturday March 14th themed on ‘Engineering Strategy’. Firestarters is a key part of the focus that Ben’s team has to deepen relationships between Google and the planning community in North America, and for this event in Austin we’re putting the spotlight on the intersection between UX and strategy, building on the successful events we’ve already held in New York on The New Operating System for Agencies, and Creativity in a Constrained World.

As more and more products and services become digitised we are creating a new context for innovation in which exceptional user experience is increasingly critical, highly desired, yet often poorly executed or misunderstood entirely. As clients build out in-house UX capability, as banks, IT firms, and big management consultancies aqui-hire design and UX talent, and as VCs bring in influential names in experience design are we witnessing a sea change in how strategy and UX need to work together? Where is the cross-over? What can one learn from the other? How should they work together in agencies? Can they sit comfortably together or will one dominate at the expense of another?

As always we have some brilliant speakers from both UX and Strategy to give us some exceptional provocation on the theme:

Oonie Chase - Director of Experience at Wieden & Kennedy

Russell Davies - Creative Director, UK Government Digital Service

Chloe Gottlieb - SVP Exec Creative Director, R/GA

Ian Spalter - UX Lead at YouTube

Ben is hosting the event at the Google Fiber Space in Austin, and I’ll be moderating on the night. I can't wait. The event kicks off at 5.00pm on Saturday 14th March and is invite only but as usual I have some guest passes to give away to readers of this blog. So if you’ll be in town and would like one do leave a comment below or drop me a line.


This Week's Favourite Fraggl Links

Here are my favourite links from this week curated by Fraggl:

  • Really like the look of Flow (above) - a programmable, wireless controller for computers and other connected devices that has raised over $270K on Indiegogo
  • The guys at (friends of ODF) Storythings are launching a podcast which should be excellent. In the run up, they've put out a call for good stories
  • It turns out that more information doesn't mean better decisions
  • And here's what research tells us about making accurate predictions
  • good piece from Cory Doctorow on Govt surveillance: 'the last thing you need when looking for a needle in a haystack is more hay'
And of-course you can sign up to Fraggl here.