Understand what really motivates us

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This weeks blog from Guy Watson of Riverford Organic farms is one of the best pieces of attractive thinking that I have seen for some time.  It is prompted by his reflections on the election aftermath.

He accurately describes the human condition.  This condition is why I believe that business organisations which set out to help customers solve problems (value adders) do better than those who set out to extract the most money from customers (value extractors).  Three statements that stand out for me are

  1. What I find so depressing … is the apparent ubiquitous cynical belief that appealing to personal greed is the only way to get anything done.
  2. Ultimately we all want to feel good about ourselves and at work this falls broadly into three areas: feeling we are learning and getting better at stuff, feeling some control over our lives and feeling a sense of purpose.
  3. My plea .. is to have a little faith in people; we’re not as shallow, selfish or as dumb as you seem to think. Show some trust, give us some hope and we might even surprise you.

If you take this thinking and apply it to attracting more customers it takes you to a very attractive place.  (N.B.  We also like their veg)

Re-blog of post from Guy Watson www.riverford.co.uk

I believe that given half a chance, most people, most of the time, are smarter, fairer, more generous and capable of more empathy than our institutions give us credit for. I found both the election campaigns and the result hugely depressing without really understanding why; with the exception of the Greens I feel no more aligned with the policies of the losers than the winners. On reflection I realise the reason for my gloom is a conviction that the institution with the most cynical view of our behavioural motivations is the modern Conservative party.

I’m guessing that, as someone already personally rich, I will be richer under an unfettered Conservative government; but I don’t expect to be happier. What I find so depressing about modern post-Thatcherite Conservatism (and only marginally less so about post-Blairite Labour) is the apparent ubiquitous cynical belief that appealing to personal greed is the only way to get anything done. Considering the almost complete lack of evidence to back up this assumption, it has gained extraordinary traction in Westminster and the City over the last 30 years. In the real world, where businesses have to compete by getting the best out of people, it has largely been abandoned as a piece of failed, ideologically driven dogma.

For the most part, we are emotional beings responding to much deeper, less tangible but more powerful emotional motivators; ask anyone in advertising. Ultimately we all want to feel good about ourselves and at work this falls broadly into three areas: feeling we are learning and getting better at stuff, feeling some control over our lives and feeling a sense of purpose. To believe that ‘carrot and stick’ management is why a nurse will care for a patient, a parole officer will struggle to support a young offender or why a programmer would write exceptional code is crass to the point of incredulity. I suspect it is even more threatening to public services and well being than cuts and austerity.

Both hope and cynicism, given enough voice, can be self-fulfilling prophecies. My plea to Cameron and his team is to have a little faith in the people they lead; we’re not as shallow, selfish or as dumb as you seem to think. Show some trust, give us some hope and we might even surprise you.

Guy Watson

Tesla is disrupting the power industry using better products not better marketing

Tesla Powerwall

This is possibly the best example of attractive thinking applied to product innovation that I have ever seen.  It has bigger potential than any project I have contributed to.  This will be “a product that customers love”.

Elon Musk (founder of Tesla cars) launched three new products yesterday.

  • The Powerwall – a home battery linked to solar panels
  • The Powerpack – an industrial battery for commercial and factories
  • The Gigafactory – manufactures the batteries, this is an open source replicable design

Watch this video, Elon Musk explains it better than I can. Look not just at what he says but how clearly and naturally he presents. (BTW I often don’t watch videos as I find they take up too much time to say very little, but this one is worth the time)

What did I learn about creating better product from watching this?

This is not a not a new battery, this is a challenge to the whole power industry. The market opportunity for these batteries is not the size of the battery market. It is the size of the power supply industry.

Power supply companies would never have come up with this idea. It is so far away from their frame of reference and looks like a threat to their established stream of profits.

  1. A great product solves a real problem that customers have. Reducing carbon emissions is one, but the potential to remove all the unpleasant infrastructure associated with power generation and distribution is another hugely attractive feature.  For each of us there an opportunity to save money and detach ourselves from the utility company’s ever increasing charges.
  2. The top attribute of a better product is “It just works”. He uses this phrase several times. It is clear there is a lot of technology under the hood. But it seems that all that technology is about making it easy for the user.  Working overtime on the “it just works” will help us create better products
  3. Design matters, it is a part of the “It just works” The Powerwall will be an attractive feature of the home, it goes on the wall, it takes up no space.  It also looks good, unlike any battery I have ever seen before.  Design is function here.  This picture shows it located next to the car.

Tesla Powerwall

What did I learn about giving a speech from watching this?

  1. Be yourself, Elon Musk stumbles a little, but none of that matters because he is talking about something he believes in, he looks at the audience and he smiles. He has clearly rehearsed every detail, so the presentation is consistent with the product “it just works”
  2. Simple language – he uses no jargon, he use short sentences and short words.
  3. Use Graphics and photos not words in your slides. The images each reinforce a simple point that is hard to solely express in words.

So how much marketing will this product need?

I suspect it will need just two things. The first is simple.  Just create publicity to make sure we know about it. The second is harder.  Create the distribution so we can buy it.

But what this will not need is clever persuasion, or special offers, or loyalty schemes, or other marketing tricks to try to sell products that are not exactly what people need or want.

This is a stunning example of why we need better products not better marketing

This is my new standard to aspire to for creating products people love to buy.

Learning from an entrepreneur who is guided by purpose

I just read this story on the BBC news magazine.  click here to read it.  I was so inspired that I spent some time studying the story to try and draw out some lessons.

So what can we learn from an entrepreneur whose whole business is guided by purpose and goes on to overcome huge obstacles and then succeeds despite remarkable odds being against him?

Arunachalam Muruganantham

Image from BBC world service

When I read the story of Arunachalam Muruganantham, I was in awe at the 1300 microbusinesses he has helped to create and amazed to learn about the 1 million jobs he has stimulated as well as the health and hygiene benefits he has helped Indian women obtain. It is incredibly inspiring. Possibly also like me; you are slightly in awe of his determination and courage?

Read his story click here

But sometimes perhaps we fail to learn lessons when we read about experiences like this. Especially when the circumstances seem so different from our own situation. So I took a long hard look at Arunachalam’s story.  Here were my five main takeouts.

Lesson one: PINPOINT the problem: Keep on researching until you have not only identified the customer problem but you really understand it.

Arunachalam’s doggedness in trying to understand the womens’ problems and the real reasons for their behaviour during menstruation (which was threatening their health, hygine and lifestyle) is remarkable. What I noticed is that he tried everything in this phase of his work. Despite the immense social and cultural stigmas he tried out prototype products, he talked to women about their worries, he observed their behaviours and finally he put himself in their shoes and experienced the issue as best he could. Funnily enough, he never showed them a concept board and said “would you buy this?”.  He did much of the research himself.

He combined this exploratory work with research into the competitors and their products and sought to understand the home made alternatives that women were using.

He spent 4 years working at this question, which is extraordinary, but probably explains why he came up with something that really works.

Lesson Two: POSITION the product by explaining what it does better than the alternatives. You have to explain how your product solves the problem better than the alternatives that the customer uses.

In some cases for the customer to see your product as a better, you may have to change how the customer see’s what is important. This is very difficult. The customers existing paradigm may not allow you to sell the product without education as to how it helps them.

In Arunachalam’s case, the alternative forms of sanitary protection that were available were either too expensive, unavailable or were unhygienic and ineffective homemade solutions. Apparently, Arunachalam had solved all these problems, so it looked like it would be easy to stand out.

But there was a bigger hurdle. Being private and discreet was overwhelmingly important and seen by women as a bigger issue than staying hygenic.  Homemade protection was an easy way to stay discreet.  Going out to buy pads was not discreet.  This is the barrier he needed to overcome.  As is often the case the reasons why people buy stuff or don;t buy stuff are personal and emotional.  Here was no different.

Arunachalam had to help women understand that being hygienic was more important to them so they would be willing to go and ask for a pad.  His solution was to use word of mouth advocacy and testimonials by the women involved in the local microbusinesses.

Lesson Three: Keep PERFECTing your purpose and your story.  As time goes by do keeep your resolve to do something that really helps customers not just makes money in the short term. It will keep you going and make your products and solutions even better.

Especially in this case where people will keep telling you “That will not work”  or “You must be mad”.

Instead of being put off, Arunachalam used what he learned on his journey to take his purpose to a whole new level. He had started out by trying to make sanitary pads that Indian women could afford. He ended up realising that the best way to do this was for women to make them locally.  He did not manufacture pads and maximise in a big factory for short term profit.  he designed a machine that local women could use to make the pads.  He helped to create 000’s of microbusinesses and millions of jobs which made the whole project even more fulfilling for him and for many small business owners and communities.

Arunachalam Muruganantham Sanitary pads manufacturing machine

Image from BBC world service

He clearly disliked the major branded manufacturers who charged high prices for sanitary protection that women really needed and then sold it to them with dreams of an active lifestyle whilst ignoring the real issues around hygiene. Arunachalam challenged the way that big business approached sales of sanitary protection by going local. He stuck to his guns on affordability and providing a hygienic solution as a result he also created new businesses and new jobs.

The quote from BBC news sums it up for me

He was once asked whether receiving the award from the Indian president was the happiest moment of his life. He said no – his proudest moment came after he installed a machine in a remote village in Uttarakhand, in the foothills of the Himalayas, where for many generations nobody had earned enough to allow children to go to school.

A year later, he received a call from a woman in the village to say that her daughter had started school. “Where Nehru failed,” he says, “one machine succeeded.”

This whole new level of purpose must have powered him forward when he hit obstacles.

Lesson Four: PROMOTE be available and understood: The product has to be available where the customers can buy it and customers need to understand what it is, what it does and where it comes from.

In this case Arunachalam realised that localised small scale production in the hands of a local group was the way to ensure the product was available where it was needed most and that this enabled sales to happen through word of mouth. One woman could explain to another how the product worked and where it came from. This method helped with the education task to reframe the women’s view of sanitary protection and help them see being hygienic was at least as important as being discreet.

Lesson Five: PITCH your story to get help: When you have clarity about purpose and have developed a solution then it may be that there are thousands of people out there who can help you deliver it.

Having a clear PITCH and story is essential to make this happen.  Arunachalam must have put an amazing amount of effort into explaining to women (pitching) why his machines to make sanitary pads would help them improve their lives. He is obviously still doing this today as he speaks with students and young entrepreneurs and shares his experience.

But then I read he is planning to go much bigger.

“My aim was to create one million jobs for poor women – but why not 10 million jobs worldwide?” he asks.

He is expanding to 106 countries across the globe, including Kenya, Nigeria, Mauritius, the Philippines and Bangladesh.

Read his story click here

There are lessons in here for both entrepreneurs and leaders in established larger businesses. There are parallels in your situation. So when you read stories about entrepreneurial success, do try and draw out the lessons for yourself.

Whilst I cannot promise that Differentiate will always help you show the dogged persistence and determination of Arunachalam, the decision points you face are the same as the ones that he describes here.

Each of the five steps in our approach to turning your purpose into products customers love to buy will force you to examine the same questions and apply them to your business.

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How do you feel when some asks…So what do you do?

This picture shows how I have felt inside for many years.

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If you have an easily recognised job and you are happy with it, this emotional response may be puzzling to you.  The answer is straightforward for you.  How you feel about giving this answer depends on how you feel about your job. E.g. I am a doctor, architect, marketing director of xxx, consultant with McKinsey etc.

But when you have set up your own business, or if you work in a field that people don’t easily understand, then it can be a scary or tricky moment. At Differentiate we have been working with clients for 16 years and often struggled to “label” or “describe” what we do as a business.

Why is this a struggle?

Sometimes I am worried about sounding undifferentiated and generic and what to be special and distinctive.  So I come up with something that is “different”.  But what I have found is that in doing that, all too often I just come across as unclear.

A solution
So I have spent some of the past 12 months working with Mike Harris to be better at answering this question. Mike was founder of First Direct and Egg Money and developed pitching skills in doing this.  He now has an approach to solve this problem. He calls it Perfect Pitch.

The emotional revelation for me is that creating an elevator pitch is liberating and confidence building.  This means if the situation is just social then I am more relaxed and not worried that I might come across as selling inappropriately.  If it is a business context then this is, of course, the first step in marketing a product or service. Be clear what it is. Your customer has to understand what is you offer. Only then can they decide if it helps them solve a problem that they are grappling with.

This post shares my answer to the question “what do you do?”.

All feedback welcome. Please email, tweet @chrisradford10 or comment here.

  • Is it clear?
  • Does it make sense?
  • Is what we did for you?

Here is the shortest one for the elevator (probably still too long)

Clarity
I’m a strategy consultant who helps business leaders create growth strategies that everyone is convinced will work. We work with big firms, but are re-engineering our product to work for smaller businesses as well.

Credibility
I was a marketing director at Pepsi. In 1996, I founded Differentiate to work in consumer products and B2B. Most notably we helped Mars to create CELEBRATIONS and then turn GALAXY into a $200m+ brand in the Middle East. More recently we helped MIRACLE GRO transform its performance as well as reposition some professional service businesses.

Problem
Business leaders have lots of ideas but can be unsure how to pick the winners. And then when they do they struggle to convince everyone the ideas will work.

Solution
We created the EFFECTIVE GROWTH LEADERS programme to address this. This is about coming up with and picking winning ideas and convincing the whole business team the ideas will work.

Mission
We are known for getting results and on a mission to reignite growth in established products and services.

If they seem interested then talk more about the problem and solution……..

Problem – what is the problem I am trying to solve?
We have researched the problems faced by 300 business leaders. They told us they have many insights and ideas but struggle to see the wood from the trees. They sometimes lack the CLARITY they need to pick the winners. Then when they choose a potential winner it is hard to CONVINCE the business to go ahead. This is because BIG GROWTH ideas are disruptive. And disruption creates risk. The business needs convincing the RISK IS WORTH IT. This is not easy. It takes an ENTREPRENEURIAL mindset and determination to do this. We call these people INTERNAL ENTREPRENEURS.

Solution – how do we solve this and why is it believable?
We have a 5 step method to address this. We create clarity and evidence using research, analytical tools and workshops. This 5 step method is the Effective Growth Leaders programme. At the end of the process, you know which changes to the product, the branding, the marketing or the distribution strategy will be most EFFECTIVE at driving growth.

What is our next game? Where is this going?
This is high end consulting that works, but it costs over £50K. Many mid-sized businesses cannot afford this. The GAME CHANGER will be to make it affordable to mid-size businesses.
To do this I am taking the analytical tools online. I am restructuring the approach to run 10 clients in one EFFECTIVE GROWTH LEADERS programme rather than just 1 at a time.

Mission and purpose.
We are known for getting results and on a mission to reignite growth in established products and services.

What is you experience of answering this question.  Do you have a pitch that is both clear and interesting?