Rethinking Business Processes

Process Mapping is generally seen as a laborious exercise in workflow mapping that is supposed to add value by helping improve business processes. Once the As-Is model has been mapped with sufficient and just enough detail, the analysts are supposed to find ‘obvious’ areas for improvement and can then triumphantly arrive at an obviously improved To-Be process model.

This approach may be adequate for incremental workflow improvement but does not address good design for a business process.

The reason a process exists is because it adds value to the customer. Otherwise the process shouldn’t exist. This is the golden rule for good Business Process Design.

James Martin and Michael Porter have been expounding on the central principle of value creation for the past few years with the Value Steam approaches.  Recently Ralph Whittle reviewed the background and presented Enterprise Business Architecture as the overarching concept to capture the value-driven approach.

Given that (value-driven) process design is the core of any successful organization, I am a little concerned to find Graham Hill bidding good-bye to Process Thinking and welcoming Design Thinking as a replacement.

It may be that his use of the word ‘design’ in this fashion is too generic. A good DESIGN will bring user-centric interface design, user-friendly information architecture and customer-value-driven business processes together into a rewarding experience for the customer – and a profitable transaction for the business. Process thinking (from a customer’s  viewpoint) is key.

Incremental workflow improvements in the guise of process management are ineffective unless they rest on solid business processes built after asking, “Does this add value to the customer?”

How to Document & Collaborate with Visual Thinking?

Dan Roam’s new book, ‘The Back of the Napkin’ illustrates the power of visual thinking to solve any problem – individual or organizational, including so-called business problems. The companion website has a very compelling whiteboard presentation on the four steps of visual thinking, the five focusing questions and the six ways we see and show.

Seeing the art of visual thinking framed in a ‘scientific’ context is a relief. This is the second big validation I have come across – the first (for me) was Bill Buxton’s book on ‘Sketching User Experiences’. I am a white board junkie and have been known to start arranging paper-clips, coffee-cups and pens in a drawing representation if paper and pen are not handy. I have written about my awe of sketching…and look for ways in which this individual tool can be scaled up beyond a small team into corporate settings. How do you take sketches enterprise wide? Not just as pictures of the whiteboard or screenshots of your doodling on a TabletPC…..but as business documents similar to ones created in  Microsoft Word, Excel, etc…or even Google Documents..where dispersed teams can review, comment and collaborate.

My experiments with Microsoft OneNote, Mindjet MindManager, Google Sketchup and Evernote’s Evernote have been great personal tools and I continue to use them in varying degrees depending on the problem at hand. Some of these tools do allow collaboration and team review….but they are not mainstream yet. I have not been able to scale up the experiments to a point where I can say with confidence that the tool itself will not distract from the goal of visual collaboration.

So, all of my electronic sketches get distributed via PDF to the team…who can mark up a paper-copy and we sit down in a conference room with my electronic sketch displayed on the wall and make changes for everyone. While we are making do with this level of tool sophistication, I am focused now on getting to animated sketches so that a story can be told with higher fidelity….cutting down on misunderstandings and sharpening the follow-up questions that can actually take the analysis or the solution or the execution further along. Animating pictures is now taking me to our Graphic Designers and their Adobe Flash tools, etc. Fun stuff and I like messing around with that when I have time.

But the nagging doubt remains – how do I get visual thinking and sketching into the mainstream?

The ‘Science’ behind Changing Jobs for Better Pay

Leonard Mlodinow writes in a recent article in Forbes about the paradox of Meritocracy.

..one can imagine a more realistic utopia, where people are treated fairly and are compensated according to their skills. A true meritocracy. But there is a lingering problem–How can we tell what a person is really worth?

In today’s economy where knowledge work has overtaken traditional physical work, there is no easy way to count the number of widgets being cranked out to measure worth. For a truly fair world, compensation should be directly tied to value-added. This concept compounds the problem even further because value of an enterprise is not the assets and ‘goodwill’ anymore, but a complex series of judgments made by investors regarding competitive ability, industry positioning, branding, etc. Unfair in some sense but very much real, especially in large businesses where direct contribution to ‘value’ is buried way deep under all the financial consolidations and investor hysteria that makes up the stock market ticker symbol.

So, how does one draw a relationship between an individual’s contribution to the enterprise and the corresponding value-added? One does not even try it! Mlodinov continues to point out that

In business, merit supposedly determines pay. But in fact, it’s often the other way around, with pay determining merit. In controlled studies in which people were assigned random tasks with random pay, psychologists discovered people behave as if the higher-paid individuals have superior ability. And they do so even if they know that the pay scale was arbitrary.

Although Mlodinov does not reach the obvious conclusion in his article, the inescapable message to knowledge workers is that they will be recognized for their pay-scale first and merit second. The incentive for advancement is tied to boosting their pay-scales and not necessarily on adding value to the business. And if the climb through pay scale ladders is slow at the current company, move to another for a ‘fresh start’. Or if the risk is worthwhile, participate in the open market yourself by turning into an independent consultant. We are conditioned to value the recommendation from a $500/hr consultant even though the same recommendation from a $50/hr employee has bounced around without gaining any traction.

The message for businesses is equally clear. To add the greatest value to the business we need a robust and fair mechanism to recognize and reward merit through a visible tie to company performance. The alternate is to try and add value with a mix of (a) pay-scale focussed, unmotivated employees, (b) new employees who have joined to get that pay-scale jump they could not in their old companies, and (c) high-priced, short-term consultants brought in to try and add value using the unmotivated employees mentioned above….or by bringing in even more high-priced, short-term consultants.

Businesses need a core of meritocracy in its Utopian sense, and that core can drive value-addition in the most efficient and sustained fashion.

Gamers make the Best Employees

Brent Hutchison John Seely Brown and Douglas Thomas recently wrote on a Harvard Business Review blog about the Gamer Disposition - an attitude and set of traits that are ideal for today’s employees. He writes that

Today’s multiplayer online games are large, complex, constantly evolving social systems. Their perpetual newness is what makes them enticing to players.

The gamers have bottom-line orientation, understand the power of diversity, thrive on change, see learning as fun and pride themselves on discovering radical and innovative solutions. All these together are the perfect buzzwords for a resume or a cover-letter that I want to receive for everyone on my team. In this age of accelerating change, we cannot afford static structures and certainly no team that cannot be nimble and quick at the draw.

After establishing that Gamers have the best traits for being the best employee today, it will be interesting to ponder why that might be so. Interactive games provide a compressed timeline, a clear goal but unstructured and unknown environment – requiring rapid learning, environment scan, evaluation of options and decision making…in order to get rewarded by immediate feedback and hopefully a promotion to the next level!

Looks like getting Gamers to be employees is a great idea, but be prepared to create a challenging and exciting environment for them…or watch them switch to another game.

Follow thy Customer

ShopRite grocery stores have just started beaming customized ads to shoppers through their computerized shopping carts – as part of a Microsoft Atlas technology roll-out.

Microsoft will deliver the ads based on data obtained from ShopRite’s customer loyalty cards, according to the companies. When shoppers scan their cards on the computerized shopping carts, they will see ads and promotional offers on the screen based on their purchasing histories.. 

Most retail stores track customers’ path through the store to gauge effectiveness of various displays and product placements – mostly as passive observation to help with merchandising and advertising – and not for personalized sales and advertising. So, this is a proactive move at influencing customer behavior while shopping and not the usual attempt made with discount coupons spewing out of the printer at the checkout lane.

This story reminded me of the sophistication that some Casinos had put into place almost two years ago. At Harrah’s

Gamblers don’t just win money when they play at one of Harrah’s 26 casinos. When they swipe their loyalty cards, they’re also eligible to win a variety of perks, from appetizers to Swedish massages, depending on their level of spending and the information Harrah’s has collected about them. …..Data from low-rollers also convinced Harrah’s to redesign its casino floors to include, for example, a higher percentage of lower denomination slot machines and video poker games—for a 12 percent hike in slot revenues.

Loyalty programs of various kinds need not be just a mechanism to track and reward repeat customers. If technology is used appropriately, a loyal customer can now be tracked through the shopping experience and also through the service delivery experience. A very comprehensive set of data can then be collected at that micro-level of interaction – analyzed at an aggregate – allowing new products, services, marketing and attention to be delivered seamlessly back to the customer at the individual level.

Customer and Seller can now be engaged in a longer relationship, learning from each other and helping each other be more efficient, effective and profitable.

Video Games to overtake Movie Business?

Businessweek is reporting that

Through November, the U.S. game industry is up a whopping 50 percent to $13.12 billion. Considering that December sales can often wind up accounting for as much as 25 to 30 percent of annual sales, the industry will easily break all previous records in 2007, likely coming in around $18 billion or more. And the $18 billion estimate doesn’t even include all the online subscriptions, casual games, micro-transactions and more.

Consider this: According to the Motion Picture Association (MPA), in 2006 all-media sales (movies, home video/DVDs, and television) in the U.S. totaled $24.3 billion.

Video Games are almost 75% the size of the Movies Business! And growing at close to 50% per annum!!

I have to admit that this stark comparison comes as a huge surprise. In my mental model movies business was the big-bucks larger-than-life mega industry and games were ’appetizers’ and ‘desserts’ to the main course – the feature film. Admittedly, the show biz is a mature industry and is not expected to have a blistering rate of growth – but Gaming almost as large as the entire Movie business?

Shocking.. and a smack on the side of the head to take the industry seriously - as a marketing and advertising channel at least. It is not just fun and games any more. Huge audience, mindshare and eye-balls. Mucho Moolah involved….

Shopping Online = Playing a Virtual Reality Game?

While declaring that  “Content is King” is dead, the UK based Travolution Magazine is recommending a stiff dose of “User Experience Redesign” for Online Travel Agencies in the US as the way out of the current industry-wide stagnation in online travel sales. 

The editor, Kevin May has this to say

Research from Forrester a few months back indicated that online bookings in the US are falling despite an increase in the number of visitors to corresponding website. This is a disturbing trend.

[Consumers]  are also asking for more from the providers of services during their time on the web.

This is a problem for the travel industry because, until very recently, it has been focused primarily on the transactional elements.

So-called ‘user experience’ has invariably been left to ensuring accessibility guidelines are complied with (or not, as is often the case) and sizeable sums of money being spent on flashy designs

A concerted effort by travel companies to improve user experience on websites can only benefit their consumers, and the sector as a whole.

With virtual reality video games and online worlds like Second Life – not to mention the cool animated movies that have been topping the box offices for a few years now – expectations from an online experience are increasing. Add to the mix the fact that a Travel Purchase is essentially purchasing an experience – not a book that you order from Amazon and get to stack on your nightstand. The customer is expecting a preview of the experience as a key ingredient to the purchase decision-making process.

Speaking of buying boxes, Amazon and Best Buy sites treat customers the best according to a recent survey. Amazon just wrapped up its best season ever. The Wall Street is certainly very happy.

It’s time to start borrowing ideas from the video-games and the movie industry to make travel shopping an ‘immersed’ experience. Remember The Matrix and the Matrix Online game? Just my personal favorites! Your mileage may vary…

Sketching Ideas and the Future

My fascination with sketches and white-boards is a perpetual target for jokes and comments from friends, family and colleagues. We could be discussing the most complex bit of business or systems architecture …. or just trying to agree upon a decision criteria to choose the new television for the living-room… Boxes, Circles, Arrows and 2×2 Matrices will start appearing on convenient surfaces at hand – mostly in color if I can manage it (4 colors are best, in my opinion)!

I view my impulse to sketch as a fairly non-hazardous idiosyncrasy – as long as the people around me are willing to be patient while I try to get everyone (and my understanding) literally on the same page. Most of the time we end up with a more focussed discussion, a much clearer understanding and a more comprehensive action-plan, solution or whatever was the goal of the gathering. Sometimes, people run for the hills!

Sketching works for me and I use it as a crutch/tool for thinking all the time. So, I was delighted to find from the Bill Buxton of Microsoft Research that I am following in the traditions of good designers. I have just read his book, ‘Sketching User Experiences’, and came away impressed by his thesis that to create a practical view of the future you need to ‘sketch’ out relevant pictures for all users who you hope would participate in that future.

Fuzzy Logic Systems are Evolved Structures

One could argue that fuzzy logic systems…that learn through their own ‘experience’ do not have a structure…

Look carefully and you realize that the difference lies in composition vs behavior. These systems are composed of elements based on well thought out architecture and structure; but at the same time their intended behavior is to evolve without pre-defined structure.

So there is underlying architecture masked so effectively that you could believe that it does not exist….sounds like a perfect definition of architecture, doesn’t it?

The Whiteboard Sketch

I am constantly amazed at how powerful the simple act of reaching for a white board marker is. When I see someone flip over the cocktail napkin and reach for a pen, I feel the same anticipation…here is a new idea and a brain dump on its way, more powerful in presentation, more focussed and therefore more persuasive….all because there is a ’structure’ to it, there is a framework to the sketches and all components of the idea are organized clearly relative to each other.

Architecture in the making, I say.