Somehow We Had A Social Life

Back in the Dark Ages – by which I mean the mid 1980s – a time before mobile phones, let alone Facebook, we somehow managed to enjoy a vibrant social life.  We relied on something far more potent than technology: we understood human behaviour.  In practical terms this meant that we could predict, with a reasonably level of certainty, which pub would be frequented by a particular group of people at a particular time.  Even in those pre behavioural economics days, we realised that people are habitual and find comfort in repetition.  We saw how behaviour is conditioned by contextual factors: the weather, the time of week, the proximity to exam deadlines, the screening of a particular TV programme.  We were insightful people.

Technology is a wonderful thing: I have written two books charting its effect on people’s behaviour and expectations, so I hope I could never be described as a Luddite.  Algorithms have become cool: Robert Harris’ new book, The Fear Index, is about a maths genius who creates a revolutionary form of artificial intelligence that tracks human emotions, enabling him to predict movements in the financial markets with uncanny accuracy.  But machines will never understand people as well as people understand people. This is why success in social media is more dependent on an understanding of human behaviour than an understanding of technology and why some of the best thinking on the subject is coming from anthropologists and social psychologists, who have an appreciation of the social and cultural impact of this new technology.

I run workshops that aim to help people to become more insightful and one of the key points I make is to trust your instincts.  Interrogation of data and people is important; social media analysis can provides us with an abundance of real time data; and algorythms have turned Google into the world’s most influential business, but I have yet to come across a breakthrough insight that didn’t come from someone’s imagination, intellect and observational skills.  Being an insightful person – and everyone can learn how to be insightful – may no longer be required to locate your mates in a pub, but it has never been more important.

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Aristotle and the England Rugby Team

As a Welsh rugby supporter it pains me to say it, but I hope Martin Johnson’s enlightened management style pays dividends in the forthcoming world cup. England’s coach has demonstrated a smart understanding of man management and human psychology by announcing that he intends to treat his players like adults. In the press conference that preceded the England team’s departure for New Zealand, Johnson declared that he intended to treat the players like grown-ups and believed them capable of self-discipline, personal responsibility and a degree of self-government.  It will be entirely up to the individual players to decide  about when and where to drink and socialise during the tournament in New Zealand. Given the unsavoury headlines that followed England’s last tour to New Zealand – which included allegations of rape – many sports commentators have described this as a brave, if not foolhardy decision.

I am not sure whether Johnson has studied ancient history, but he is clearly a devotee of the Aristotle school of management.  Unlike Plato, who believed in the need for authoritarian direction if anything of value was to be achieved, Aristotle believed in man as a social animal who needed a sense of participation in own destiny.  I hope Johnson’s decision is vindicated … just so long as England’s destiny is to lose to Wales in the final.

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Wise Words from the Arch Contrarian

Alastair Dryburgh is one of the heroes of Loose for his willingness to challenge conventional thinking.  Here, for example, is his description of forecasting: “an activity that is at best useless and at worst actually counterproductive … forecasting nourishes the dangerous illusion that we know what is going to happen.”  His advice, which concurs with one of the main themes in Loose, is to “Stop forecasting, embrace uncertainty, start managing.”  It is therefore appropriate that I should encourage you to buy Alastair’s new book: ‘Everything you know about business is wrong’, which expands the wise words in his wonderful column in Management Today into an extended critique of complacent ideas and lazy business practices.  With forensic skill and subtle wit he challenges commonly-held views on such core business disciplines as pricing, budgeting, measurement and of course forecasting and highlights how many of the initiatives undertaken by business people end up achieving the exact opposite of what was intended.

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Apple – The World’s Worst Case Study

Following today’s sad news about Steve Job’s decision to stand down as Apple CEO for health reasons, it is an appropriate moment to revisit the Apple story.

I have always found it difficult to write about Apple? How do you make sense of a company that is so successful, yet fails to follow any of the increasingly accepted principles of openness and collaboration? Wired magazine had it just about right when it came up with the headline: “How Apple got everything right by doing everything wrong.” In Crowdsurfing, which I co-wrote with David Brain, we decided that it should be considered as an exception to the rule, which might have been something of a cop-out, but we received some support for this view from The Sunday Times’ Bryan Appleyard, who wrote, in a review of a biography of Steve Jobs, that: “Most of these (the lessons from Steve) are harmless, but ‘Be a despot’ (“It’s okay to be an asshole, as long as you’re passionate about it”) and ‘Don’t listen to your customers’ might well prove fatal in the wrong hands. In fact, I’m pretty sure that any company that wasn’t run by Jobs pursuing these tips would be brought to its knees in a fortnight. Jobs’ Apple is not a repeatable formula because Jobs’ isn’t.”

If you have a messianic figurehead like Jobs, a design genius in Jonathan Ive, complete control of the product value chain (what technology commentator John Naughton calls “the toll gate through which everything flows” ) and are enjoying an unparalleled hit-rate when it comes to new product launches, you can adopt Apple’s tight and hyper controlled approach. If not, and even Apple has now lost one of these fundamental pillars that made it unique, it is not a replicable model. Life after Jobs is likely to see Apple becoming less willing to defy conventional wisdom and accepted practice. It will become a more normal company, which will make it easier to replicate, but less easy to worship.

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Andrew Lloyd Webber & the Triumph of the Amateur Critic

Much gnashing of teeth has greeted the news of the early closure of the Phantom of the Opera sequel, Love Never Dies, and not simply from Andrew Lloyd Webber.  It has been seen by many commentators, including David Lister in Saturday’s Independent, as symbolising a defeat for the professional critic. Despite some generally positive reviews from the professionals, Lloyd Webber’s latest production never seemed to recover from its early mauling at the hands of amateur critics on the internet.

There is an accepted principle in theatre-land that the professional critics don’t formally review a performance until all of the teething problems have been ironed out. Unfortunately, the amateur critics refuse to follow this convention, so reviews of Love Never Dies began to appear within hours of the opening performance. The professional critics joined the debate in an attempt to defend the primacy of their viewpoint compared to the uninformed opinions of bloggers, although their argument was somewhat undermined when it was discovered that a pun repeated by a number of eminent critics – ‘Paint never dries’ – actually originated from one of the amateur commentators.

Veteran critic Michael Coveney spoke for many in his profession when he suggested that, ‘Everyone is entitled to their opinion but it is not criticism.’ In his Guardian theatre blog David Cote made a typically valiant defence of his profession, even if the metaphor he used was rather untheatrical: ‘We critics, reviewers, consumer reporters – call us what you will – are the dung beetles of culture. We consume excrement, enriching the soil and protecting livestock from bacterial infection in the process. We are intrinsic to the theatre ecology. Eliminate us at your peril.’ There is little doubt that the dung beetles are fighting a losing battle against this type of evolutionary process.

To his credit, the Independent’s Lister appears very relaxed by ‘the democratisation of criticism’, suggesting that theatre billboards will increasingly feature positive blogs and tweets as well as the opinions of experts such as himself, although he doesn’t discuss where this leaves the professional critic. The fact that Variety magazine in the US has already dispensed with its chief film and theatre critics might indicate that his generation could be the last to wear the mantle of the professional critic.

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Get the Organisation & Culture Right and the Tweets Will Look After Themselves

I recently chaired a social media conference where the marketing head of a major insurance company admitted that up until very recently it used to take them 10 days to issue a Tweet.  That’s 10 days for each 140 characters of text to make its painful journey through compliance, legal and corporate communications.  This is an extreme case of how the corporate world is struggling to embrace the new demands posed by social media but is not atypical.

Compared to the hyper-speed of social media communication, most institutions are tortuously slow, weighed down by layers of bureaucracy, management cultures that don’t trust people to make decisions, pedantic legal advisers and self-serving control freaks in their public relations departments.  Expecting these businesses to be able to respond in real time to a tweet or a comment on Facebook is, at the moment, completely unrealistic. Equally, you still have companies taking five days to approve a corporate press statement, so to allow their employees to take part in a real time, unscripted and unedited conversation with customers online is going to require a huge cultural shift in the way that they work.

So rather than focus on the “three Ts” of social media – technology, tactics and trivia – organisations should first look at their culture and organisational structure: they need to loosen up.  Get this right and the Tweets will look after themselves.

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What Business Can Learn from the Ups & Downs of British Cycling

An extract from my new book Loose …

It was fascinating to observe the progress of Team Sky during last summer’s Tour de France. The expensively assembled team, under the leadership of Dave Brailsford, is following the template used by Brailsford to transform the performance of Britain’s track cycling team from also-rans to the best in the world. His meticulous attention to detail and belief in ‘the aggregation of marginal gains’ (the idea that even small improvements to every facet of the team’s preparation will ultimately make a difference to its performance) played a critical factor in Britain’s domination of the velodrome during the Beijing Olympics.

Brailsford and the rest of his colleagues at Team Sky are using this same approach in a bid to win the ultimate prize in cycling, the Tour de France, by 2014. During the races, nothing is left to chance. The team use their own mattresses, pillows and duvets during their overnight hotel stops to prevent the riders suffering allergic reactions. Team briefings at the beginning of each race day take the form of PowerPoint presentations, rather than the informal discussions used by the other race teams. The team bus offers the ultimate in rider comfort, including a lighting system that can be adjusted to match the riders’ mood. The drinks bottles handed out during the race have different electrolyte mixes for each rider because they sweat in different ways. Even the team leaders admit that they are sometimes guilty of excessive analysis, but nothing will be compromised in the pursuit of excellence.

It would be fair to say that Team Sky’s debut in the Tour did not go to plan. Despite the meticulous preparation and attention to detail, the team’s riders struggled in what must be the world’s most brutal sporting event. It would be unfair to criticize Brailsford and his team right at the start of their five-year mission to win the Tour – especially given his track record – but it will be interesting to observe whether a strategy that works perfectly in the highly controllable conditions of the velodrome can work equally well in the unpredictable environment of the Tour. In the velodrome there are relatively few factors beyond the control of the team directors, other than the performance of their rivals. On the road, however, the teams have to be able to cope with the unexpected – the spectacular crash, interference from spectators and sudden changes of climate. As well as being highly organized, it requires the riders to be able to improvise and respond to situations as they arise.

The former international cricketer Ed Smith, in What Sport Tells Us About Life, claims that, ‘many of the most inspired sporting achievements, like great works of art or innovation, spring from parts of our personalities which resist rational analysis, let alone planning.’ He compares the type of professionalism exhibited by Team Sky, which ‘likes to think it is in control – that it has got a work ethic, a clear process and a precise system’, with the ‘childlike freedom and instinctiveness’ of amateurism. He quotes Brazilian football manager Felipe Scolari, when he was still living off Brazil’s success in the 2002 World Cup, rather than struggling at Chelsea: ‘My priority is to ensure that players feel more amateur than professional … we have to revert to urging players to like the game, love it, do it with joy.’

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Lessons from the Rugby Pitch

Given that we are right in the middle of the best sporting event of the year – the Six Nations Rugby – here’s a rugby-related extract from my new book, Loose ….

Rugby Union is a relatively complex sport and, to the uninformed, the activity on the pitch can look bewilderingly chaotic. Rugby coaches rely on repetitive drills to help players work together more effectively as a unit. In a similar way to the drilling of troops for battle, endless hours are spent on the training ground practising set plays. The aim is that every player knows what is expected of him in a particular situation and can act, almost without thinking. A rugby lineout, for example, requires the thrower of the ball, the catcher and the people lifting him to be in perfect harmony, which can only happen after hours of practice –and in the case of the Welsh team that I follow, not even then.

Without an organizing framework at the heart of every rugby team, it would simply degenerate into chaos. But the truly successful teams need something more than this framework, otherwise they risk becoming too predictable. Set plays, rehearsed in the artificial environment of the training ground, often without any opposition, all too often break down in the real match situation. The more enlightened coaches therefore talk about the need for ‘heads up rugby’ or ‘playing the game in front of you’. What they mean is that players have to be able to make decisions in the heat of the action on the pitch, rather than always follow pre-programmed moves. This is a perfect example of freedom within a framework. But it takes a great deal of hard work and inspiration to get players to actually deliver ‘heads up rugby’. They have to be given the skills and confidence to judge situations, make decisions and take calculated risks. The legendary Scottish coach Jim Greenwood, who virtually invented modern rugby coaching, described it as ‘well-judged risk-taking’, which is probably as good a definition of the art of management as you will find in any business book.

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Citizen Powered Question Time

The Coalition government’s efforts to involve the electorate in helping to shape policy and spending decisions – what David Cameron describes as the ‘largest public engagement project ever launched by the British Government’ – closely follows a template created by Barack Obama.  For the second year running, Obama has appeared on YouTube in a live question and answer session, responding to video and text questions posted and chosen by the American public – what they describe in America as “a virtual townhall gathering”.   By the time the interview was broadcast last week, over 140,000 questions had been received and 1 million people had expressed their opinion on which of them should be put to the President.

As the host says in the introduction to this particular clip: “This is the internet and on the internet people love to have a more personal relationship with their elected officials.” I have no doubt that Cameron and his team are already planning their own citizen-powered question time.

http://www.youtube.com/watch?v=pWwBdlOJkn4

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The Year of Slacktivism and Hacktivism

This has been the year in which the words ‘slacktivism’ and ‘hacktivism’ made it into the collective dictionary.    In the eyes of many political and social campaigners, what often passes for protest in the digital world – signing an online petition or changing your profile picture on Facebook to demonstrate your support for a cause – is mere tokenism or, in the latest parlance, slacktivism.   Malcolm Gladwell attracted a huge amount of unfair criticism when writing in The New Yorker how this type of low involvement, low risk activism  hardly compares with the political battles of the 1960s, when people literally risked their lives in the cause of civil rights.   By this way of thinking, social media is not heralding a reawakening of popular activism.  It can play a major role in organising protest movements – whether against the imposition of student fees or  what appear to be the tax avoidance strategies of major corporations – but the real battles are still being waged at street level.  It is only when the windows of Topshop in Oxford Street are smashed or the stepson of a former rock star decides to swing on the flag at the top of the Cenotaph that the protest is deemed to be real.

The rise of hacktivism provides a counterpoint to this view that protests or other forms of direct action have to take place in the real, as opposed to the virtual world.  The ability of a loosely aligned group of computer hackers to infiltrate the websites of companies accused of preventing the dissemination of Wikileaks material, has thrown the corporate security experts into a mad panic.  Companies with a significant e-commerce business are particularly vulnerable.  According to The Times, “Cyber security experts report a surge in calls from companies worried about their defences against such attacks.” This underlines how the distribution of power in the online world is asymmetric. All of the advantages now lie with the activists. They have the expertise to use the latest technology – the WikiLeaks team uses cryptography to hide the identity of its people and make it next to impossible to trace content to a specific internet address – and know how to get the online community on their side by playing the freedom of expression card. The activists may still, on occasion, take to the barricades, but the real victories are increasingly likely to be achieved in cyber-space.

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