Tag: Culture change

Collaborative business modelsCollaborative cultureCulture change

BCG six rules for managing complexity come down to one: make cooperation happen

As it has been explained in previous posts, Destinations 3.0 are developed upon cooperation between a wide variety of agents, encompassing DMO, DMCs, Tour-operators, Government, local suppliers, local community, etc. To make this cooperation work and manage such a complex network of players, the Boston Consulting Group has developed a new approach to managing complexity, called smart simplicity, which hinges on six simple rules. Guess what? All six rules come down to just one: make cooperation happen.

How do companies create value and achieve competitive advantage in an age of increasing complexity? That’s the question authors of “Six Simple Rules” Yves Morieux and Peter Tollman try to answer. For them, the winners of the new much more complex context will be the companies that can transform complexity into competitive advantage. For that to occur, they provide six managerial rules that go for companies, managers and employees with less-direct control, fewer systems, more flexibility and more autonomy. If read carefully, all six are about increasing cooperation at organizations, but three of them talk about it more directly.

Rule number two is “Look for Cooperation”Authors ask managers to find out how cooperation happens and who makes it happen; identify the “integrators”, the people and units who bring others together and drive processes; and eliminate layers and rules and give these integrators the power, authority, and incentives to make the entire task succeed.

“Six Simple Rules” differentiate between Cooperation and Collaboration. For them collaboration is about teamwork and good interpersonal relationships, which could even lead to the avoidance of real cooperation. Cooperation is a demanding activity that involves taking individual risks because individual contributions to the joint output can’t be directly measured. People only cooperate when, by cooperating, they can win as individuals. “Remove managerial positions if they don’t influence people to cooperate”, authors advise.

Rule number four: “Increase Reciprocity” (to make cooperation happen). Instead of relying on dedicated interfaces, coordination structures, or procedures, authors recommend managers to increase reciprocity, which ensures that people have a mutual interest in cooperation (as their success depends on each other). “Reciprocity makes people cooperate more autonomously and, therefore, makes organizational life simpler.”

And finally, rule number six: “Reward Those Who Cooperate”. If people think cooperation is risky, make it riskier not to cooperate. Most organizations punish failure. But that can make people risk averse. The challenge is to encourage risk taking that improves performance.  For Yves Morieux and Peter Tollman the solution is encouraging cooperation. “People take personal risk, and risk becomes fruitful for the company, when they know they can count on others to compensate, relay, absorb, or provide a safety net in case things go wrong”, they consider.

The original article is available at Why Managers Need the Six Simple Rules

This article is from www.co-society.com/half-bcg-six-rules-better-simpler-management-cooperation/

Collaborative business modelsCollaborative cultureCulture changeInnovationInnovative culture

A fresh outlook to public-private sectors relationship where a Co- mindset is key

Since the latest global financial crisis, new evidences prove the mindset shift ingrained in the private sectors in accordance with the trends of Marketing 3.0, namely referring to the business mission driven purpose and the cooperation between businesses and also with governments. This article deepens in the new role of governments in this new paradigm. For Willian D. Eggers and Paul Macmillan, authors of The Solution Revolution, it’s time to contemplate a fresh outlook to public-private sectors relationship where a Co- mindset and practice is key.

As tough societal problems persist and government budgets tighten, citizens, social enterprises, and even businesses, are relying less and less on government-only solutions. The Solution Revolution describes how, as the subtitle puts it, “business, government and social enterprises are teaming up to solve society’s toughest problems”.

These wavemakers range from edgy social enterprises to mega-foundations that are eclipsing development aid, to Fortune 500 companies delivering social good on the path to profit. In order to make the biggest impact, they have started to think holistically about their role and their relation to other players, not as competitors fighting over an ever-shrinking pie, but as potential collaborators. By erasing public-private sector boundaries, they are unlocking trillions of dollars in social benefit and commercial value.

For the “Solution Economy” new players, government is an essential part of the solution but government’s role have to change dramatically. The traditional boundaries between public and private sector should blur in order to get better results when dealing with social problems. There are some on both sides of the divide who doubt whether there should be such a divide at all. They are realizing that each sector stands to do better with a little help from the other.

Fortunately, as The Solution Revolution points out, international companies are increasingly seeking “progressive structures” through which co-operation is endorsed and regulations are created to engender higher levels of trust and mutual interest between companies, sectors, supply chains and markets.

Thus, the business world is undergoing such profound change that a fundamental rethink of the relationship between companies and governments is required. For instance, the so called “Purpose Economy” or “Purpose-Driven companies” where a new CSR mindset is less about PR and more about looking at problems as opportunities, including social problems as education, water, low-cost healthcare, sanitation, recycling, or reducing traffic congestion.

The Solution Revolution examines scores of examples of how this kind of Co- approach is already solving social problems. Here are some of them:

  • Recyclebank turned recycling into a game by uniting cities, citizens and companies around a system of exchange and rewards. Citizens are encouraged to recycle more by earning points that can be redeemed for discounts and deals on products and services from Recyclebank’s network of more than 100 corporate sponsors.
  • Unilever created an entire ecosystem of diverse partners to address an urgent sanitation problem affecting more than 600 million poor Indians. It acted as a partner with NGOs, banks and schools to create a profitable market for cleaning products in rural India.
  • NASA partnered with SpaceX and other private space companies when fiscal constraints shut down the agency’s space shuttle programs. SpaceX’s unmanned Dragon capsule successfully docked on the international space station in May 2012.

You may find the original article in The Solution Revolution

This article is from www.co-society.com/fresh-outlook-public-private-sectors-relationship-co-mindset-key

Beyond the proposed destination models 3.0, which other public-private partnerships do you envision for tourism destinations?

Business model innovationBusiness trendsCollaborative business modelsCollaborative cultureCulture change

Business ecosystems come of age

As it has been explained in many posts and Whitepapers, one of the key success factors of destinations in their evolution towards the Vision of Tourism 3.0 is to develop an innovation ecosystem integrated by different types of contributors. In that regard, Business Trend Series Deloitte’s report Business ecosystems come of age presents a series of articles describing how businesses are moving beyond traditional industry silos and conjoining networked ecosystems, creating new opportunities for innovation.

The report offers a glimpse of how some view the rise of ecosystems as an opportunity for creating powerful new competitive advantage as it becomes increasingly possible for firms to deploy and activate assets they neither own nor control and expand the possible beyond of their expertise and activities.

This brief summary outlines the various subjects and ideas dealt with:

Introduction: A brief history of the concept of ecosystems applied to business and how it all started in the technology sector but now is also taking root far beyond.

Blurring boundaries, uncharted frontiers: Long-standing boundaries and constraints that have traditionally determined the evolution of business are dissolving, allowing new ecosystem possibilities to flourish.

Wicked opportunities: Many kinds of complex, dynamic, and seemingly intractable social challenges are being reframed and attacked with renewed vigor through ecosystems formed by unprecedented networks of NGOs, social entrepreneurs, governments, and even businesses coalescing around them.

Regulating ecosystems: Regulators are challenged to create policies and solutions that protect the public’s interests and are also dynamic enough to keep pace with innovation born through ecosystems.

Supply chains and value webs: A set of powerful developments have worked together to help transform the business environment, changing how supply chains are configured, further heightening their strategic significance for many firms, and creating new leadership imperatives for the years ahead. Now “companies don’t compete—supply chains do.”

The new calculus of corporate portfolios: The rise of business ecosystems is compelling strategists to value assets according to an additional calculus, often generating different conclusions about what should be owned.

The power of platforms: Properly designed business platforms can help create and capture new economic value and scale the potential for learning across entire ecosystems.

Minimum viable transformation: Business model transformations are not unprecedented, they have always happened. It is not even new that business model transformations must consider the evolution of a company’s broader ecosystem. What is new today is that such transformations must be considered and accomplished routinely—not as storm-of-the-century events.

You may download the document at Business ecosystems come of age

This article is from www.co-society.com/official-business-ecosystems-come-age-deloitte-confirmed/

Co-creationCollaborative cultureCulture changeInnovationInnovative culture

Co-ideation with employees, a first step for a much needed mindset and culture change

Destinations 3.0 intend to engage both the DMO employees and local stakeholders in co-creating contents and products in the form of life-changing experiences. This article brings us a case study showing how to create innovation teams and foster internal cooperation to boost innovation.

New collaboration efforts on innovation are usually almost exclusively put on initiatives, partnerships or projects with some other companies or external agents as providers, distributors, developers, academics or even customers. But often there is another area where to try to make the most of collaboration to innovate in a way that is easier, less risky and many times as fruitful: within the companies themselves.

Co-innovation between different departments or with employees not directly linked with innovation functions it’s still unusual. Maybe one of the reasons is because it’s kind of counterintuitive to think that anything else is needed to foster collaboration once you hire talent and put it under the same roof with common goals. But in practice, things do not work this way.

We have already some experience initiating and managing processes within companies of different sorts and from different sectors in order to create innovation teams with employees never before asked to think and implement new ideas. It’s not an easy task. Tools and methodology are needed. It is also very important for companies trying to tap into own talent for innovation to constantly explore what is going on beyond the walls of their sites, areas of expertise, business model and industry  to avoid the syndrome that make internal ideas often biased by a reapplication of knowledge, methods, and solutions which hinders creativity and market sensitivity.

But outputs are positive and important. For start, a first experience that acts as a necessary spark for a culture and mindset change in order to create a needed “company’s second operating system”, the one in charge of the future of the organizations. Co-innovate internally is the best first step and learning & testing way to co-innovate with external agents afterwards.

There are many ways to foster internal collaboration to innovate. Siemens is one of the big global companies that puts lots of efforts into their innovation goals and they have lots of initiatives on open innovation, co-creation and co-ideation within the company itself. This article describes two of the tools the company is using successfully for such a goal: TechnoWeb, an online platform that can be used by all Siemens employees worldwide to share ideas and research trends; and an Open Co-Ideation competition that invites researchers from different departments to share their knowledge.

TechnoWeb and the Open Co-Ideation competition exemplify new approaches for the internal generation of ideas, some of them already turned into successful company products as the article shows. But more importantly, they are causing Siemens’ corporate culture to change. As Christoph Krois, responsible for innovation management at Siemens, explains:  “It’s no longer a case of my knowledge, your knowledge, or my precious secrets, because as we proved with this tools and processes, knowledge is the only thing that increases if you share it”.

You may check the original source at Co-ideation and Knowledge-Sharing culture in Siemens

This post is from www.co-society.com/co-ideation-employees-first-step-much-needed-mindset-culture-change/

What cultural barriers prevent these innovation practices from being developed more often in corporations?

 

Collaborative cultureCulture changeMarketing 3.0

Why is it necessary to create a collaborative culture?

The future of destinations is likely to depend upon a strong force that breaks the traditional rules of competition through stimulating cooperation, hence causing the union of its poles. Therefore, the future of destinations will be based upon the capacity of creating those conditions.

It is necessary to make repelling agents such as businesses and people, work together creating synergies benefiting the whole community. This change entails developing a new culture, which means changing values, beliefs and attitudes in both poles: businesses and consumers, as well as other kinds of stakeholders.

Throughout history, societies that have developed an economic system but not a culture to drive it forward have collapsed. Nowadays, the speech about entrepreneurship in Europe puts its focus on the need for creating spaces for entrepreneurs, when the real need is to develop a culture of entrepreneurship.

Therefore, when we talk about smart cities or smart destinations, are we only talking about urban and system planning? Good systems themselves are useless if there is no active culture of cooperation among agents.

Hardware x Software = System or Economy x culture = Society

The future is a destination where there is cooperation in two ways: a smart destination from the systems perspective and collaborative from the social perspective; a destination where there are thousands of exchanges and connections between business agents and social agents; destinations where products and services are developed in cooperation with social entrepreneurs. A destination where business and social agents are not connected is likely to fail, because the future of the economy is based upon collaborative models.

Therefore, the future of destinations is not based only upon developing infrastructure and technology, but on creating the conditions to facilitate efficient and long-lasting cooperation among all stakeholders.
This post has been inspired by an article in www.infonomia.com , the leading Spanish Forum on innovation.

Collaborative cultureCulture changeInnovative cultureMarketing 3.0Strategy

The Marketing Plan 3.0: Overcoming barriers in the social media adoption

When introducing and trying to engage employees and community stakeholders in social media platforms, there may be many barriers, fears, concerns and attitudes that pose a cultural change challenge. Therefore, it is necessary to research and listen to these employees and community stakeholders on their opinions, visions and attitudes about engaging in social media to assess the need for a specific culture change and internal marketing strategy to deal with these obstacles. For instance, some of the barriers may be:

  • Fear of negative reaction from customers
  • Lack of time or internal resources
  • Fear of extra workload for the employees
  • Lack of knowledge and expertise
  • Not convinced about its profitability
  • Fear of losing privacy

Once all the barriers are well known, there has to be design and implementation of a Change Strategy to overcome them based on the following sequential patterns:

1. Create a guiding coalition ·   Identify and engage change agents as social media catalysts

·   Assemble a coherent group to lead the change

·   Integrate this team into the affected groups

·   Bring in champions in each group dedicated to social media success

2. Develop a clear vision ·   Create a catalyzing vision for the social media effort

·   Develop strategy in line with the overall vision

3. Share the vision ·   Communicate the vision in every possible way to the community

·   Commit executive and community leadership to supporting the vision

·   Coalition members should be role models for the community

1.    4. Empower people and remove obstacles ·   Organize training courses on storytelling and content creation

·   Organize training courses on social media adapted to all audiences

·   Change structures, systems, compensation and any factors that obstruct the social media effort

5. Secure consistent short-term wins ·   Make public and visible performance improvements

·   Celebrate victories in line with the overall  program vision

·   Reward and recognize those securing the wins

·   Publicize the progress of the project together with the contests

6. Consolidate and keep moving ·  Use momentum to gradually change all systems and processes that don’t support the program’s success

·  Enable change agents throughout the organization and community

·  Energize the project with consistent flow of new content of all types

7. Anchor the program in the organization and the community ·  New approach should be anchored in the culture of the community

·  Real key to social media success is in transforming the organization and community to the culture of a social enterprise

·  Maintain consistent action to further embed behaviors and discipline

 Do you think of other barriers or necessary steps to overcome the stated ones?

Collaborative cultureCulture changeInnovative cultureMarketing 3.0Strategy

The Marketing Plan 3.0: changing values and behaviors

The development of the Marketing Plan 3.0 may present two cultural challenges:

  • The need for developing a new set of values as organizational standards of behavior, as a key success factor of the new values driven marketing
  • The need to overcome barriers in the adoption of the social media and content marketing engagement by the employees and the local community

Beyond the life-changing experiences and the related stories, to keep the brand integrity and ensure the success of the new marketing endeavor it is necessary that the employees and partners’ behaviors faithfully reflect the preached values. Therefore, it is probably necessary to develop a culture change program, at least to harmonize certain critical behaviors throughout the destination stakeholder community.

Designed upon consensus among the key stakeholders and community leaders, there has to be a set of values underlying the behaviors to be promoted throughout the community. Such values should be cooperation, innovation and openness to new ideas, integrity and transparency, initiative, sustainability, solidarity, common good, etc. To convince stakeholders of assuming the new set of values, it is recommendable to elaborate a Case for Change, which contains the following pieces:

  • Context: why changes are needed now, stating opportunities and threats that justify it.
  • Changes: what has to change, who is to be affected and what does not have to change
  • Process: how the proposed changes are to be implemented and expected timing
  • Benefits: who benefits from the changes (destination, community, individuals, etc.)
  • Consequences: what would happen if these changes are delayed
  • Expectations: the role every stakeholder has to play
  • Commitment: leaders have to present the Case for Change to the community, stating their explicit commitments that ultimately make them accountable to the community.

Once the Case for Change has been defined, it’s time to implement it following five principles:

  • Train employees, partners and community members on how to apply the new set of values on a daily basis, with especial emphasis on their relationships with tourists.
  • Putting the new values into practice by changing behaviors
  • Leaders have to preach by example, becoming the key role models that inspire everybody
  • Ensure that everyone is aligned with the new values and behaviors, and correct if necessary
  • Celebrate results achieved by any employee or community member to encourage others

The key ideas of driving culture change to understand are that this has to be started from the leadership positions, well communicated to convince their organization or community while listening, understanding and addressing their possible resistance, preaching by example, achieving and celebrating results, and benefiting all stakeholders to prevent further resistance.

The Whitepaper on “Building a culture of collaboration and innovation” is to develop in detail the key factors to a successful cultural change into developing the desired attitudes.

Would you consider other points in designing and implementing the Case for change?

Culture changeMarketing 3.0StrategyStrategy planning & execution

The Marketing Plan 3.0: Network engagement and development strategy

As the reader may have already understood, the success of destination marketing 3.0 is based upon building and engaging a large network of stakeholders. Furthermore, an Open Innovation System has to be developed engaging both professional and non-professional contributors. Such a challenge is not easy to tackle, no matter how compelling the stories are or how motivating the mission accomplishment is, for a specific strategy should be designed to enhance the chances of success.

This strategic challenge is particularly critical for DMOs, as long as they have to involve the whole destination community and its DMCs. This should be structured in four sections:

  • Internal marketing: selling the vision to the stakeholders to gain their support on the new mission driven endeavor.
  • Culture change: addressing all the attitudes, fears and other barriers that prevent stakeholders from successfully embracing the social media tools, as well as the values of collaboration and innovation.
  • Network development: building the network, empowering and motivating stakeholders to contribute to the content creation and actively advocating for the mission driven brand.
  • Open innovation system development: building the network of contributors, with special focus on the professional contributors, as they require specific strategies to attain the desired results.

Do you envision other major challenges requiring a specific strategy?