Presence over Process

This week, the bees went to bed for the winter. Fed down with verroa treatment in the hope that most colonies will survive the winter.

I have also had three very different conversations this week about the importance of Business Processes. In each conversation, I came to a different set of conclusions. However, there was one over-riding idea that shone through from each conversation. The obsession with the current process-centric religion in management thinking has actually made many of our service-based organisations less, not more effective and less, not more efficient.

The first conversation came from an experience I had with a US-based hosting company I have used for about ten years. Last year they put SAP into the company. Two months ago the company was sold. The service has been declining for about a year. Coincidence? I don’t think so. The new process involves forcing you to ring a US telephone number which is actually answered by someone in the Phillipines who filters you so they can direct you to the right department. The problem I had involved both Domain Names and Hosting – so I ended up being put through to two departments. In the end I was double-billed and had to ring back a week later to complain – when I went through the same rigmarole – and was sent an email to say I couldn’t reclaim the money because it was against company policy. I rang a third time and finally got through to someone who sorted me there-and-then. Sounds familiar? More like a telephone company? Yes, indeed. I then got hold of the Director for Customer Experience and Process Design on LinkedIn to share my story. He was a Harvard MBA. He saw my profile but ignored me. The company is called Network Solutions.

The second case was with a former colleague whom I had lunch with. He is an aspiring partner at one of the big five consulting practices. He told me he was writing a paper about the importance of process design in telecoms companies. I cited the above story and said that Presence was more important than Process. He looked quizzical. He could not compute. He was not sure how he could implement Presence and make money out of the idea from a consulting assignment.

The final conversation was with an enlightened ex COO of a Telecoms company with whom I had lunch with on Tuesday. He said he was process mad – yet when you listened to his stories of how he managed processes, there was a great deal of practicality and experience blended in with the importance of providing the right information to the right person at the right time to turn customer issues and questions around on the first call.

In the crusade to banish the obsession with Process centricity, I continue to marvel at the bees that I keep. They don’t have crazy processes to waste time. They have developed an approach that balances Process AND Content (or pollen/nectar collection) IN THE MOMENT so that they can respond with far more intelligence than just following a book of rules. Interestingly, the model they use shows that outsourcing is extremely wasteful and makes no sense at all. If you have to hand off, do it only once (not three times like ITIL). The models from the bees also demonstrates the sense of investing in small, agile “cells” of capacity and capability tuned to specific types of demand.

To summarise, I believe it is time to create a new management paradigm based on Presence (modelled much more on the natural world that the bees have developed over 50 million years). It creates a paradigm shift that takes us away from the insanity (or caetextic thinking) of process-obsession and into a new much more organic model based on cells or colonies that can respond to demand of various types a seasonal basis.

Just like the bees do.

I am writing a book on the idea – so expect more like this in future postings.

I have also posted Presence over Process on MIX – The Management Information Exchange – please add comments and vote for the idea there or add your comments here as you wish.  Always valuable!

Share

Central Banks & Local Currencies

Living in Kent in the UK, I have always been fascinated by local currencies and hop tokens. These were issued by local farmers to the hop pickers who came down from London – and could only be spent in the local village or on local beer (provided by the farmer!). However unfair, this really was localism in action!

So it is, as Europe and the US faces its currency crisis, trying to payoff old debts with a money system that is totally broken, it becomes so interesting to look to history and the so-called Wörgl experiment. This was conducted from July 1932 to November 1933 and is a classic example of the potential efficacy of local currencies in a time of financial crisis.

Wörgl, a small town in Austria with 4000 inhabitants, introduced a local scrip during the Great Depression. By 1932 unemployment in Wörgl had risen to 30%. The local government had amassed debts of 1.3 million Austrian schillings (AS) against cash reserves of 40,000 AS. Local construction and civic maintenance had come to a standstill. On the initiative of the town’s mayor, Michael Unterguggenberger, the local government printed 32,000 in labor certificates which carried a negative 1% monthly interest rate and could be converted into schillings at 98% of face value. An equivalent amount in schillings was deposited in the local bank as cover for the certificates in case of mass redemption and earned interest for the government.

The certificates circulated so rapidly that only 12,000 were ever actually put into circulation. According to reports by the mayor and economists of the day who studied the experiment, the scrip was readily accepted by local merchants and the local population. It utilized the scrip to carry out 100,000 AS in public works projects involving construction and repair of roads, bridges, tanks, drainage systems, factories, and buildings. The scrip was also accepted as legal tender for payment of local taxes.

In the one year that the currency was in circulation, it circulated 13 times faster than the official shilling and served as a catalyst to the local economy. The heavy arrears in local tax collection declined dramatically. Local government revenue rose from 2,400 AS in 1931 to 20,400 in 1932. Unemployment was eliminated, while it remained very high throughout the rest of the country. No increase in prices was observed. Based on the dramatic success of the Wörgl experiment, several other communities introduced similar scrips.

In spite of the tangible benefits of the programme, it met with stiff opposition from the regional socialist party and from the Austrian central bank, which opposed the local currency as an infringement on its powers over the currency. As a result the program was suspended, unemployment rose, and the local economy soon degenerated to the level of other communities in the country.

So there is a way out of the currency crisis – if only we looked to history and suppressed the central banking systems. I cannot see the dollar and euro surviving in their current state for much longer without some re-thinking. Makes you think what we could do if we took localism to the next stage of its natural development.

Main story from Wikipedia – http://en.wikipedia.org/wiki/Local_currency

Share

Reasons for Encouragement: Keeping the World View

In the week that the US space shuttle programme came to an end, the BBC put a cut-down and edited version of the film “Round the world in 90 minutes.

You can watch the older version on YouTube in five fifteen minute cuts:

Let’s hope that the planetary consciousness that the outstanding programme has delivered will continue to see the world as a fragile ecosystem and not as a toxic dumping ground for consumer madness (per the previous post).

Share

Reasons for the Crisis: Designing for Obsolescence

In a week where the Murdoch media empire appeared to lose its power, I came across this video “The Story of Stuff”- perhaps the most important “News of the World” that Murdoch’s empire was at the heart of ignoring.

Even if you have seen it, watch it again: it will make you think again about how the world works.

It is interesting how, with the launch of Apple’s Lion operating system we are still seeing “Design for Obsolescence” as one of the main design principles from what many say is the best design company in the world. It’s time for Apple (and the rest of us) to re-think design for the 21st century so that we can close the circle, not keep pushing the 99% waste down the pipe. Designing for Pull has to be a major factor in this redesign philosophy – and something I will come back to in future posts.

Share

Thought of You

Whilst on my quest for more beautiful, short animated videos, I came across this one by Ryan Woodward that cannot but touch your heart. It also makes you think!

Share

One Man Band

I am ever in awe of short stories that have been beautifully animated. Thanks to Pixar for this video.  I could not help but draw the analogy between the players and the current banking crisis in Europe!  Still, I wonder where the bag of gold will really come from to rescue the situation…..

Share

Innovation at the Edge of Elecricity

Although this is almost exactly a year old and quite US-centric, the video below “Innovation at the Edge of Electricity” was made. It has some great stories that may well make the minds of anyone living in the US or Europe boggle at how true innovation is happening in the developing world without any “help” from regulators or lawmakers.

As technology is forcing industry convergence, it is not just the Western-style Telecoms regulation that is getting in the way, but the rules and regulations from the Electricity and Banking Industries too. For instance, look to Africa, not Europe or the US if you want to see what true innovation is on mobile payments.

Many of the stories are particularly helpful when we think at how we should rollout faster broadband to the so-called “Final Third”. Innovation has always happened on the edge of the network. Surely it is time for us to include some of these new ideas from the “edge of electricity” and adapt them to our own requirements. Or will we let the regulators carry on regulating our service industries to die a slow, painful death?

Well worth watching to the end.

Share

Dottting the i

Although I use an Apple iPhone and heard today that Apple overtook Nokia (in revenues) on mobile phone sales, you have to hand it to Nokia that they still think big.  Just watch this:

and then see the background story:

Just hand it to Nokia – Apple might have the “i” – but Nokia’s Dot takes the day for me!

Vote for them on the Webby awards here.

Share