Another Anniversary of the New Economy

Last week marked the 30-year anniversary of one of the things we love to hate: spam. Everyone assumes spam started with the likes of some shameless consumer marketer.

But it was actually the former Digital Equipment Corporation that launched the first spam when it announced its DEC-20 computer in 1978.

Digital’s announcement was sent to all ARPANET addresses on the west coast inviting them to attend one of its many launch parties taking place all over California. DEC was later chastised for breaking the ARPANET appropriate use policy, and a notice was sent out reminding others of the rule.

In 1978 nobody called this a spam - and the rule was never fully respected (having a captive audience is just too tempting for promoters). The good news (and the bad): the anti-spam industry was born. (BTW, if you know the origins of “opt-in and “opt-out” please let us know.)

But why the word, spam?

Some say spam’s roots originate in a Monty Python skit, in which a restaurant serves all its food with lots of spam. When a waitress takes orders from patrons, she mercilessly repeats the word spam in describing how much spam is in the spam-infused menu items, especially on spam days (and of course, it turns out that every day is spam day).

A group of Vikings (don’t ask) hear this and are inspired to write a song called Wonderful Spam – that is even more annoying than the waitress, The patrons (who are apparently not intimidated by the singers' Viking status) demand they shut up.

Hence, spam took on the meaning of repetitive annoyance. 

Who at Hormel Foods, maker of the canned "Shoulder Pork And Ham" lunch meat would have predicted such an outcome? 

Communicating With Credibility: An Interview with Executive Coach Michael Barr

What I like most about Michael Barr is his command of history. He's shown me that history is really about people and relationships, not dates and events. One listens to his ideas and wishes he would become our Secretary of State. But in the meantime, we can benefit from his insight about making communications credible, by not re-inventing the wheel. Mike has an ability to draw ancient teachings into modern times with such great ease, you'll wonder why we repeat mistakes so much and so often.

Tell me about the type of work you do.
I help executives excel.  2,300 years ago Aristotle taught that persuasive leadership was built on three pillars: Ethos - Credibility; Logos - Reasoning; and Pathos - Emotional Impact. 

I have always urged my executive clients to excel at Logos. My feedback to them looks at Ethos (credibility) and Pathos (emotional impact).

Cynics call what I do "charm school." But very successful people remember that Aristotle taught Alexander the Great, who quite literally conquered the world by combining military genius and advanced weaponry with an articulate appeal to reason. That and his personal bravery were legendary even among his enemies. 

"2,300 years ago Aristotle taught that persuasive leadership was built on three pillars: Ethos - Credibility; Logos - Reasoning; and Pathos - Emotional Impact."

What do you like most about what you do?
I believe that business leaders today wield enormous power.  One of my clients is a marketing genius with a short fuse. He reminded me of a king who, when angry, wished all his subjects to have one neck so that he could cut it. After working with the CEO he became a listener and a motivator. His people bloomed and the business is thriving. Real transformation, built on respect - that's what I like. 

Why are IT executives still challenged in getting a seat at the executive table?
They are getting closer, but in corporate symbolism when you report to the CFO you are still considered a cost center. Many senior executives pay public homage to the importance of IT to the business. Yet in private they heatedly politicize IT issues such has who ought to do it, where, and for how much. Interestingly, as technology-savvy executives take over, these questions become more urgent - and IT leaders have to address them credibly.

" .... in corporate symbolism when you report to the CFO you are still considered a cost center."

You've said "it's never the content" that holds IT executives back. Can you explain?
Knowing your stuff will always be important. But today, IT leaders need to actively participate in their companies'  global citizenship, which brings up new challenges in managing wages, benefits, ethics, and environmental impact. IT executives don't see themselves playing a role in managing these issues, but they can and they must.

IT executives are expected to understand the work of their C-level peers in marketing, finance and operations. But what about the reverse? Should the CFO, CMO and COO be more zealous in their IT education?
Every executive in the company should know enough of every function to be able to ask questions and smart enough to  welcome the answers.

Executives are slowly realizing that the frontiers of their respective functions are blurring.  Technology is right there in the mix. IT execs should be able to translate technology into clear, applicable, and  thought-provoking language that non-IT people will absorb, believe and imitate. When IT executives speak with people, not at people, the entire company benefits.

"Executives are slowly realizing that the frontiers of their respective functions are blurring."

How do you articulate the business value of IT?
IT is an enabler.  When seamlessly woven into the fabric of the company it enhances the company's ability to meet present and future challenges. It's really that simple, and that complex.

What's the first thing you do to help IT managers migrate their image from geek to business person?
I work with IT managers one-to-one so that they can talk confidently and powerfully to their various business constituencies.  I create a safe, thoughtful environment for the managers so that they can improve their specific stories.  Image is a very important issue, but it's highly sensitive. Addressing it requires trust, patience and experience.

Do IT executives need a better storyline? If so, what is it?
Transformation is the real story of IT. It's is a challenging story to tell because change occurs slowly and business wants quarterly results. 

IT has been clamoring for respect for as long as there has been IT. The power of Microsoft, Oracle and Google has transformed business globally and managers who grew up with computers will bring about greater transformation still: virtual companies are but one example.

Your blog has become an integral and important part of my coaching conversation with managers seeking to incorporate, as you suggest, relevant stories addressing the needs and strengths of their companies.   

"Image is a very important issue, but it's highly sensitive. Addressing it requires trust, patience and experience."

What 's the first thing a new CIO should do during his or her first 90 days?
Read Michael Watkins' excellent The First 90 Days.  (HBS Press, 2003)  Listen to stories and tell stories. Alexander the Great would sometimes wear Persian robes when listening to envoys of his Persian enemies. He showed respect and interest.  The symbolism of this reverberated from Macedonia to India.

Mahatma Gandhi said "Be the change you seek."

600 years ago Chaucer said this of one of the Canterbury pilgrims: "Gladly wold he lerne, and gladly teche."

Great advice for a CIO - and for every manager in every field.

More on Michael Barr
Mike Barr was born to parents who survived the Holocaust by leveraging their ability to speak many languages and blend into different cultures. His upbringing taught him early on that our only real safety, security, and opportunity lies in what we know. Studies in the Middle East, Canada, the US, Cuba, and Mexico enhanced his sensitivity to global cross-cultural challenges.

Contact Barr at mibarr@gmail.com

It Was Good for Me, Was It Good for You?

“Nobody cares about your product, service or solution. That's the hardest thing for sellers to realize."  - Jill Konrath, author of Selling to Big Companies.

We couldn’t agree more. Because, as marketing consultants, we at Comunicado tell our clients, “Marketing is not about you and it never will be.”

Why would Jill Konrath and I say such things? Especially to people in marketing and sales? Because it’s true. All your prospects care about is the difference you can make for their organization.

A fascinating phenomenon that reinforces this idea that customers don’t care about you – occurs when we find renegade customers using our products in ways we never intended. When I was with Hewlett Packard, I sold a materials management software package to an oil company.

The package was built to manage discrete manufacturing processes, but after a bit of tweaking, this customer adapted it to an indiscrete refining process. I just happened to find this out during some chitchat with my customer at a football game.

When I informed the product manager, she quickly told me, “Well, I will have to pull their contract. I can’t support an installation that isn’t doing what we intended the product to do.” My parents had the same reaction when I tried to adapt my bicycle as a ceiling fan for our living room on a warm summer day.

Okay, there are reasons to push back when things like this occur. But there’s a way to do it. I have a client that recently got caught in the “customers bending the rules” game. His clients are using one of his services in ways that help them, but in ways that he considers "off brand". He's not entirely wrong. The customer is using his service in a way that doesn't produce the usual research residual their business model calls for, so his solution is to either stop taking orders, or bury the story as much as possible so others don't pick up on it. But in these cases:

• Spin the customer-developed adaptation into a new offering (and charge more money for it if it doesn't deliver the margins you normally produce).

• Bundle it into another offering  (to preserve margin if the customer’s implementation doesn’t support your cost structure very well). This is also a way to make products that are "off brand" less visible.

• Start a joint venture. This of course, is a big undertaking, but when I was with a web development firm, we partnered with our client, Lincoln Center, to re-market the site we’d built for them to other performing arts centers.

You can also use the opportunity to:

• Give the customer an innovation award (as a recognition opportunity that could go a long way in fostering loyalty).

• Pitch the story to one of the trades (if the story is a bit crazy, editors love it and your client with love the publicity).

Resist the product manager’s knee-jerk reaction to blame the “naughty customer” and find a win-win solution. It’s definitely out there.

A Better Way to Think About IT Alignment

I'm always surprised to see "business alignment" amongst the top five priorities of senior IT staffers across virtually every sector (including government) year after year in just about every IT management survey conducted. Surprised, because it hasn't lost its status in two decades.

It begs the question: Do we need a new way of approaching the often dreaded alignment task? One technique that is picking up steam advises IT managers to align their capabilities and investments to their organization's competitive strengths, versus its organizational functions. It sounds subtle, but this technique helps you synch your priorities with the inherent strengths of the business.

But before I give you an example, a brief tutorial might help.

One technique advises IT managers align their investments with their organization's competitive strengths, versus its organizational functions.

How does your business compete?
Does your organization compete with product innovation? Customer service? Or operational effectiveness? Rarely do companies compete with all three.

My motives for shopping at service-superstar Nordstrom are satisfied much differently than when I shop at super-efficient Wal-Mart. Apple and Sony pull customers from Dell with product innovation. They do not aspire to offer the lowest price. Nor are they stellar service providers.

If you don't know which of these levers constitutes your organization's business advantage, ask. Or read your annual report. It's in there. Good IT organizations proactively reach out to the business with ideas that demonstrate knowledge of their organization's competitive levers. It's a great way to enhance your credibility and position IT as a true business partner.

Does your organization compete with product innovation? Customer service? Or operational effectiveness? Rarely do companies compete with all three.

Pick up a rifle vs a shotgun
Rather than shoot your resources at everything (in marketing, we call it shotgun) try the reverse approach (which marketers call rifle) by targeting your capabilities and services to the one or two things your company does well. Sure, you'll have to do the other things too, but by applying the bulk of your resources to your company's strategic advantage, you set yourself up to make a measurable difference.

For example...
Consider two insurance firms. One says, "For a good deal, buy our products online."  Another says, "If you need us, we're there."  Much different leading messages and much different IT organizations.

The price leader has superior transaction processing and has made big investments in improving the productivity of its online user interface. In fact, it may have outsourced the face of its online store to an expensive expert like TandemSeven, who helps companies build hugely intuitive web-based interfaces that scream with productivity and make online shopping a breeze.

The  other firm (that competes on customer service) invests in its brokers. Its sales force automation system significantly outperforms that of our online provider, and it offers far more personal touch and tailored insurance services (at a higher price). Its agents also have superior tools for producing highly customized insurance proposals in record time. One IT organization invests in customer touch points, the other in broker touch points - to satisfy their different business strategies.

One says, "For a good deal, buy our products online."  Another says, "If you need us, we're there."  Much different leading messages and much different IT organizations.

Remove your own bias
One of my clients was hugely disappointed when he proposed an investment to improve customer intimacy at his firm. It was shot down and he was hugely confused. After all, it's what he wants when he shops. But it's not the competitive driver the CEO of his organization had selected. And in fact, he lost credibility by failing to acknowledge how his organization not only competes -- but competes to win. Had he proposed a system that encourages customer self-service, he would have gotten the ear of his CEO.

...He lost credibility by failing to acknowledge how his organization not only competes, but competes to win.

Focus on your organization's most prized assets
Another way to approach the alignment exercise: identify your organization's most prized assets. Do they include your customer database? Your large set of patents? Your supplier relationships? If you help improve (or protect) asset value -- you'll help preserve the things your company needs to sustain business advantage. 

Notice where Wal-Mart's IT priorities lie. Wal-Mart may be cheap, but not when it comes to making investments in its supplier network - which gives its vendors access to one of the best supplier transaction systems in the industry. Suppliers do business with Wal-Mart at a fraction of the cost of other retailers. The result? A loyal supplier network, with low turnover, that is easier and cheaper to manage.

So, before you start your next IT Alignment exercise, do some homework and validate your organization's competitive strengths and prized assets. It will help you set priorities and draw those hard lines.

Does IT Need a Storyline?

Many CIOs realize their job is largely a communications role. At least the IT executives that have risen above images that liken them to "keeping the lights on, keeping the trains running or keeping the systems up."

Sure, these constitute stories, but they are stories that keep IT organizations in the basement. Moreover, these types of storylines position IT as the first organization that should cut its budget - or justify why it shouldn't be outsourced. If you're all about doing a job at the lowest possible cost, you're in trouble, especially in tough economic times.

Okay, it's a 25 year-old story: IT and the business need to be joined at the hip. And maybe you think you are. But have you developed a storyline (and associated value proposition) that supports the image you want to convey?

There are some basic guidelines to storytelling that can benefit any IT organization looking to get out of the basement.

First, what's your story? At the end of a successful project, what are business users saying about you? If you don't know, ask them. OR, imagine what you would LIKE them to say. Create the perfect testimonial, such as, "IT repeatedly demonstrates an understanding of our competitive drivers. Their team helped us get our new product to market in record time during a limited window of opportunity. We couldn't have done it without them."

Bingo: there's your message. Create a bunch of these testimonials (real or imagined) and you'll start seeing common threads. Use them to weave your storyline and unique value proposition. Show how doing business with you is unique from doing business with others (like outsourcers IBM, EDS or Accenture).

Creating the story, that brings music to your ears, also informs your planning efforts. Think about how you need to operationally adjust - to make your imagined story come true.

Next, how are you segmenting your story communications? Look at Fidelity - and the difference between their messaging to recent college graduates versus seniors. Or Microsoft. They don't talk to the financial services industry the same way they talk to higher education.

IT communications are no different. Your business users need flexibility, agility and intelligence about their customers. Senior managers want to know about asset return and how your IT spend compares to peers of similar size, complexity and market position.

Lastly, get your people wrapped into the process - and the story. Teach them how to tell your story, the way you want it told. Learn from marketers. Create a tag line, an elevator pitch, and a value proposition that puts you above the noise.

Learn from the sales discipline. Become educated in things like "objection management" or "qualifying." Learn how to say "no" without ever using the word "no." Learn to position your organization against alternatives. Learn to talk benefits, versus features. Talk business, not technology. Put "IT sales people" in place to manage business relationships.

If you believe in running IT like a business, adopt the type of marketing and sales practices leading companies use to attract and retain customers.

For a free copy of Comunicado's workbook, "What's Your Story?" click here.