Sep 16

How do you ‘lean’ a business?

In these straightened times, its a great opportunity to review your business processes & establish the foundations for the future.

Never let a crisis go to waste. Rahm Emmanuel (via WSJ)

Lean means taking a fundamental look at your business & driving out waste. Some of these wastes will be obvious (work in progress, re-work, multiple sign off sheets, etc) some of the waste may be harder to identify. There are experts in “Lean” & 6 Sigma Black-Belts, these may work for you, but I would suggest that you begin with a strategic review of your purpose, then consider some systems process modelling that will show how well, or otherwise, you are working towards those strategic proposes. From there you can assign costs and added value to activities to help with cast flow forecasting.

Strategic Purpose

You need to have one.

I was lucky to spend some time with Michael Corbett (Product Box, @productbox) a couple of weeks ago using a fairly new method called the “Business Model Canvass“. We spent a couple of minutes talking about the canvass but it’s such a simple, visual method that we quickly started drawing ideas on the sheet and making connections. It was quite fun to be the ‘client’ and not to have to think too hard about the model but just concentrate on the process.

We looked at a business I was involved with and used the Canvass to work up a representation of the business model. The visual approach quickly distilled the Strategic Purpose (which I can waffle on about for ages) and encapsulated a clear  Value Proposition. The business was a good test of the canvass as it’s not a simple model of taking orders, fulfilling orders, rinse & repeat.

We spent quite a bit of time discussing the stakeholders (or customer segments), activities and relationships. This actually identified a critical Value Proposition that I was completely unaware of. It had certainly not been articulated before.

We also worked out most of the rest of the business model, though without much detail. By lunch time we’d 75% of the business model captured, though not in a form that you could have presented to a third party. However, in a dozen or so post-it notes we’d encapsulated most of a traditional business plan and produced a couple of very clear value propositions that, together with the key partners & customer segments, represented a pretty good Strategic Purpose.

Fleshing out the sketch

Michael then pulled out his trump card – he’d set up a Google Site specifically designed to capture the output from our Business Canvas session. This contained all our notes, diagrams, together with a whole load of background info on the canvass, process, and associated references. Basically, all the information necessary to take the insights gained from the business canvas exercise and turn them into an action plan.

Michael explained that, given that it contains all this information in one place, and that it relates to a new product (or service) that he calls it a ProductBox™. Normally we’d have been working on the Canvass as team of business owners / founders / exec’s prior to launching a new product or service, and the ProductBox is designed to keep that team-work going on line. I just happened to be working with Michael on my own.

After our meeting I logged in to my new ProductBox and took a look at the draft diagrams & notes. Because we’d spent the time drafting the original using paper and pens, it was very easy to start using the on-line diagrams. The associated notes helped to expand the short notes with more detail.

After a couple more hours I’d got quite a detailed business model described. I’d also explored some of the panes in the canvas in more detail and put in some background information and explanatory notes on how things related to each other. One of the drawbacks with simple visual representations is that you often lose critical details, having the Product Box with all the notes kept all those notes together with the canvass. Although I was working on this alone (with Michael keeping an eye on me) the package is a wiki so naturally collaborative if you’re in company with others.

After a couple of sessions I had sufficient detail that I would naturally start using something like IDEF0 to detail the business processes needed to make the canvass work. One feature of IDEF that I really like is the concept of layering processes through parent-child relationships, while the Canvass doesn’t force on you, I can see it being a great complement to other approaches (and the wiki design of the ProductBox would help here also).

The end result (even after a couple of sessions) was sufficiently detailed that I could use the canvas as a map of the business model to describe to others. It’s also a live document that can continue to grow as more contributions are posted.

Michael and I discussed the use of the canvass. I think it’s strength is as a planning tool that very quickly and visually allows people to discuss their business model (without lots of MBA mumbo-jumbo). At first I was a little frustrated at the lack of detail, but I’ve come round to appreciate the simplicity of the presentation framework. There’s a lot more detail under the surface and the Product Box that Michael set up allows for almost infinite details if that’s what floats your boat.

Should you Canvass your business?

What I liked was the holistic view of the business model, and the expressed statement about Value Proposition. Anyone thinking of pitching their business should take a look at this approach, and have a chat with Michael.

Thanks to Michael for his comments on an earlier draft of this post and for introducing me to the Business Canvass and ProductBox.

Jun 06

Improv concerts & what social media can learn from them

Yesterday evening I attended the live premier of a BBC Concert Orchestra & Festival of Nature commissioned concert. (Disclosure: Science City Bristol are sponsoring the Science Cafes @ Festival of Nature, but I’ve not been involved in this concert, other than attending.)

The performance was in two halves; a short sequence of clips from the BBC Natural History Unit with the orchestra playing live, short chat with Q&A and then a repeat performance. Why two performances, and what’s it got to do with social media?

Well, the orchestra wasn’t the full BBC Concert Orchestra, 5 members of the orchestra and a composer were joined by 24 young people from schools across Bristol. They met for the first time on Tues, worked for 3.5 days and gave the performance on the Friday. They hadn’t seen the film clips beforehand, and they hadn’t played as an orchestra before. They also didn’t have any written musical score at the performance; it was all played from memory and partly improvised. And it sounded fantastic, both times!

December 28, 2009 by manning999

The key came during the Q&A. When they first watched the film and asked the young people about the music to go with it, there were lots of suggestions about a cymbal crash here, some flute there, and so on. Lots of focus on the individual instruments and notes, but no ‘bigger picture’. The first thing the composer and the BBC Concert Orchestra’s Learning Team did was to re-view the films and talk about that bigger picture, the emotions they evoked or wanted to bring out, the sense of majesty (Humpback Whales) or playfulness (Giant Otters).

Once they had those broad messages and the overall framework of the pieces, then they began to experiment with chord sequences and harmonies. By all accounts it was a very egalitarian approach with ideas being voted on, and continuous refinement selecting or disposing of small parts that worked or didn’t.

In the final performance, most of the music was played from memory, but there were still flashes of inspiration by individual orchestra members, and because they’d gone through that development process and the ground rules were clearly laid out, those individual flourishes could be included without grandstanding or throwing everyone else into confusion. They were all listening intently to each other throughout the performance, as well as having great fun.

You can see the whole thing (well a recording of the concert mixed with the films) on the BBC Big Screen in Millennium Square as part of the Festival of Nature (12-13 June 2010).

Business as music

The parallels with some types of business are quite striking. They had a CEO that was clearly in control, and he empowered this team to do what they do best. They worked on a shared vision and understanding of the broad task at hand, and willingly contributed ideas to other sections if it made the overall performance better. In the actual performance they were working to agreed boundaries but within those boundaries there was freedom to do what was best at that particular instant in time.

Social media as music

Too often people talk about social media in the same way as the young people first approached the films. We could use twitter to send out little updates, and that would link to our Facebook page, and we can pull in our blog rss, and mash up with a Google map, and…

Twitter is not a Strategy

There needs to be a bigger picture. Even if all you’re doing it trying out these tools to see how they work for you or your business, you need to have some thought as the purpose. You also have to have some thought as to the socially acceptable way of doing things. The musical rules that the BBC used were a based on a heptatonic scale, rather than the pentatonic scale. Neither is right or wrong, but you can’t do both at once (at not without calling it ‘experimental’). :)

There’s nothing wrong with breaking a few rules, that’s almost the definition of being a stand-out excellent entrepreneur / artist / individual. But you really need to know which rules you’re breaking and to what purpose.

Of course, with social media the rules aren’t quite the same as in other forms of social interaction, and as new tools come along they can mutate. Fortunately one of the rules that has completely reversed is lurking, allowing you to observe behaviour before you dive in.

Once you have that bigger purpose, knowing what the rules of participation are, then you can choose which tools / instruments will deliver the required performance.

Plans are worthless. Planning is essential. – Winston Churchill, Dwight D. Eisenhower, & many others

And of course things won’t go according to plan, but that’s where having the clear shared sense of purpose means that people can act without having to fight through layers of bureaucracy. And they can act honestly as human beings rather than PR spin-doctors or script-reading robots.

What’s your social media strategy? Listen, plan, listen, act, repeat; or deliver a stream of ‘messages’ across all channels in a blitzkrieg approach?

May 23

Social Media Systems (3)

(Update – Swapped Sam’s live UStream with Michael’s recorded YouTube)
This is an expansion on my Brrism talk on Systems Theory and how it can be applied to social media (systems).

If you’re interested in the history of systems theory, General Systems Theory, Bertalanffy, et al, then my previous post touched on that, plus there are good wikipedia pages to read (linked to in this sentence). The first article concentrated on the overview, the next article introduces the Soft Systems approach and I’ll conclude this mini-series with this example application.

But what is it good for?

Over the 30 minutes or so after my talk at Brrism, we worked mainly on the systems description using the CATWOE acronym. As with all systems descriptions and discussions, there were several views, forcefully put.

However, by the end of the very short session we’d arrived at a pretty good consensus opinion. There’s still some work to be done refining the description and it needs to be circulated widely within the Brrism community to gather feedback.

For me the breakthrough came when we agreed that the fundamental transformation that Brrism brings about is multiple ideas / perspectives into calls for collective action. That took quite a bit of work as we didn’t think that Brrism itself was about lobbying for social change, or making B2B connections, or promoting ‘best practice’; however the Brrism community might well do a bit of that after meeting and exchanging ideas!

The next task will be to convert the CATWOE into some rich pictures; but that’s for another day.

If you’re interested in what was actually said in my talk, the video is up on Facebook (sorry, not on an embeddable site, will have to talk to Michael about that). Sam Downie (@samdownie) was streaming on UStream and the slides are on Slideshare.

May 23

Social Media Systems (2)

(Update – swapped Sam’s live UStream with Michael’s recorded YouTube)
This is an expansion on my Brrism talk on Systems Theory and how it can be applied to social media (systems).

If you’re interested in the history of systems theory, General Systems Theory, Bertalanffy, et al, then my previous post touched on that, plus there are good wikipedia pages to read (linked to in this sentence). The first article in this mini-series concentrated on the overview, this article will introduce to a particular systems approach and I’ll conclude this mini-series with an example application.

Soft Systems

Humans are particularly complex systems, free will, determinism, etc mean we need some modifications to the above general approach to describing a system that specifically includes humans. This is where Peter Checkland comes in. He was a chemical engineer who realised that many of his industrial chemical systems weren’t behaving as designed, not because the design of the engineering processes were wrong, but because of the people in the system. Unlike previous engineers, who tried to design people out of their systems, Checkland tried to understand how people influenced and interacted as part of the systems. And thus, Soft System as an analytical methodology was born.

Open University, module T552

The first thing that Checkland realised was that the very neat, formal diagrams that were generally used in systems analysis didn’t allow for the messy human element. Rich Pictures are an approach that describes the system with the human elements included.

Rich pictures have the same basic features of any systems diagram (boundary, components, inputs, outputs, transformations, environment) but with some additions.

The first addition is that of Actors, not a wandering group of minstrels, but the people within the system. You can give them names, but its usually helpful to use functional descriptions. The second addition are Clients, the people that benefit from the system. Of course the clients may in large part be the actors, but usually there is a specific group of people that are beneficiaries that aren’t part of the system.

The third addition is that of the Owner. This is often an individual but could be a group, organisation, but is whatever has the authority to abolish or fundamentally change the system. Most online social systems make substantial use of free (as in beer) software, and thus have at least two owner groups; the people that set them up and run/coordinate and the people that provide the free online resources.

The final major addition needed for a rich picture is a description of the perspective being adopted by the people drawing the rich picture itself. Checkland referred to this as Weltanschauung (World View). Is the social system about generating shareholder value, individual self-actualisation, mutual support, environmental salvation…

The role of the Environment in soft systems is more important than just “stuff that’s outside the boundary”. What’s going on in the environment can directly impact the system. A good example might be the launch of annotations for twitter; we don’t know how the new feature will impact the various social systems using twitter, but it probably will.

All of which gives rise to the slightly clumsy acronym: CATWOE (Clients, Actors, Transformations, Weltanschauung, Owner, Environment).

But what is it good for? More >>

If you’re interested in what was actually said in my talk, the video is up on Facebook (sorry, not on an embeddable site, will have to talk to Michael about that). Sam Downie (@samdownie) was streaming on UStream and the slides are on Slideshare.

May 23

Social Media Systems (1)

(Update – swapped Sam’s live UStream embed for Michael’s recorded YouTube embed)
This is an expansion on my Brrism talk on Systems Theory and how it can be applied to social media (systems).

There are a couple of benefits of using something like systems theory when designing a social media system, plus a couple of drawbacks. Perhaps most importantly, it helps with the big picture before worrying about API calls, jscript vs php, etc. The main drawback is that is won’t tell you how to make your social media system actually grow and thrive.

If you’re interested in the history of systems theory, General Systems Theory, Bertalanffy, et al, then my previous post touched on that, plus there are good wikipedia pages to read (linked to in this sentence). This article will concentrate on the overview, the next article will introduce to a particular systems approach and I’ll conclude this mini-series with an example application.

What is a System?

The word ‘system’ has become somewhat diluted and it’s meaning confused. However, systems are relatively easy to spot and describe.

Patrick Coin, Feb 1996

Firstly a system has components. A ruler is not a measurement system, it’s just a straight bit of metal or plastic with some marks on it. A feather is not a flight system, it’s very well adapted to direct airflow, perhaps with display markings, certainly helps with insulation, but it’s not a system.

All those components are contained within a boundary. Sometimes that boundary is fairly obvious, like the Yellow-Bellied Sap-Sucker. Sometimes the boundaries are more arbitrary, this website might be considered a system but there’s no physical boundary. Ultimately, the boundary is where you want it to be, but should be relevant to the system you’re looking at. But remember, the wider the system the more complex, too tight and you might not have a system at all!

There is a theoretical construct called the closed system, in reality all systems are open. This means there are inputs and outputs that cross the boundary. What this stuff is that crosses the boundary will depend on the system. You might have information, raw materials, written articles, even abstract concepts like trust. The point is that stuff crosses the boundary and you can describe it.

There is an important caveat to all this stuff crossing the boundary, there has to be a transformation between the input and output. Otherwise you’ve got a pipe! A pipe is not a system.

A communications system is a system because although part of the input (your message) is hopefully the same as the output (your message), there is a pile of associated data about the sender and receiver that is transformed in moving your message to your recipient. There are also internal transformations of the input message through encoders, compressions algorithms, decoders, etc.

Systems are also in a hierarchy of systems that form their environment. My little Sap-Sucker lives in the rainforest that is its ecosystem, that is part of a wider global system, and so on. It also has a digestive system, neural system, and so on down the scale. Systems within systems.

And lastly, but most importantly, systems display something called emergent properties. In social systems this is the law of unintended consequences. Behaviours that arise from the interaction between all the components and sub-systems, variations in inputs, changes in the environment. The point being that you can’t define them all when you analyse the system.

So far, so mechanistic. How do we apply this to social media? More >>

If you’re interested in what was actually said in my talk, the video is up on Facebook (sorry, not on an embeddable site, will have to talk to Michael about that). Sam Downie (@samdownie) was streaming on UStream and the slides are on Slideshare.