Halos, strategy, and uncertainty

In a recent edition of McKinsey Quarterly (registration required), Phil Rosenzweig discusses the “Halo Effect” and other business delusions. The article is adapted from his book the Halo Effect: . . . and the Eight Other Business Delusions That Deceive Managers. Rosenzweig, a professor of strategy and international management, adjustis the halo effect from psychology to business. The basic argument, one trait or perception influences the rest. In this case if business or industry is going well, many believe that a company or leader has a sound strategy. Conversely when trends or companies are performing poorly, one may say it is poor strategy, etc. Case in point, Enron. When they were redefining business they were genius -- the media and Tom Peters couldn’t praise them enough. Now, they are seen as villains and are the subject of “business ethics” case studies.

Dr. Phil (I had to, c’mon), says that business managers are often deceived by business books that propose simple solutions. The problem is that we live in a complex and chaotic world. So the halo is "hey look at how good this is, we should implement here." Rosenzweig seems irritated by the lack of critical thinking skills by business managers (can I get an Amen?)

Getting past the irony of one business book saying that other business books are wrong and I have the right answer, I enjoyed Rosenzweig’s Zen-like insight on uncertainty. Like the first rule of Zen -- all life is sorrowful (but sorrow can be transcended) -- in business, we are continually faced with uncertainty and it is the role of the strategist to make the best decisions for the organization in the face of that uncertainty. While people want and need the world to make sense an move in an orderly fashion, it doesn’t. All systems tend towards chaos.

Chaos inducing uncertainty arises from many sources in the business-world including (1) the business world itself, (2) customer choice and adoption of new goods or services, and (3) technological change -- new technologies disrupt business all the time.

Given all of this, Rosenzweig concludes:

The task of strategic leadership is therefore not to follow a given formula or set of steps. Instead it is to gather appropriate information, evaluate it thoughtfully, and make choices that provide the best chance for the company to succeed, all the while recognizing the fundamental nature of business uncertainty. Paradoxically, a sober understanding of this risk—along with an appreciation of the relative nature of performance and the general tendency for performance to regress—may offer the best basis for guiding effective decisions. These complex decisions, made without any guarantee of success, are ultimately the main contribution of business strategists. If a set of steps that could guarantee success did exist, and if greatness were indeed simply a matter of will, then the value of clear thinking in business would be lower, not greater.

TMZ to take on politics

This was on Good Morning America this morning. TMZ is going to direct its citizen-submitted, pseudo-paparazzi lens on politicians. Expanding its gaze from Hollywood’s celebs to DC hopefuls, TMZ represents how the new media age is changing the coverage of politics and politicians. Not only will more mishaps be caught on film, but those mishaps can be posted, tagged, and shared in seconds.

From a rhetorical standpoint, we used to have more of a “shared” coverage and frame of politics. Will the fantasy themes of tomorrow have the same ability to catch us up in a drama? If the Imus case is an example, then the answer is yes.

The brand takeaway: Be authentic. It’s easier to maintain and ground you identity if it is truly authentic -- and you won't have to worry if you're being caught on film or not.

Jerks Need Not Apply

A co-worker sent me this article (registration required) from McKinsey. I hope he wasn’t trying to tell me anything.

The article is a review of Stanford business prof Robert Sutton’s new book The No Asshole Rule: Building a Civilized Workplace and Surviving One That Isn't. McKinsey treats the term more gently with the term jerk. Either way, I’m happy to see that there is a measurement for the total cost of jerks in the workplace. Not only are they jerks, but they can be expensive if they're allowed to fester and spread.

I can’t remember where I read it, but I continually repeat that “toxic companies get what they deserve.” Personally, I don’t like jerks. Some folks may like them. However, from a brand identity and corporate culture standpoint, remember your employee culture says a lot about your brand identity.

As the article points out, no jerks doesn’t mean a place free of conflict or tension. It’s how people “fight” in an organization that can be a cause and effect of it’s relative health, toxicity, or Jerk Index.

To paraphrase a primary theme in Karl Weick’s classic book, The Social Psychology of Organizing, this approach means learning to “argue as if you are right and to listen as if you are wrong.”

Which brand is hurt more?

In a lose-lose that only the fine folks at Wal*Mart can dream up, REO Speedwagon is touring Wal*Mart stores.

Nissan's Key Campaign

Honorary Agent Rett sent this opinion piece from the New York Times.

As Rett points out, the article about the campaign isn't so interesting (as a viral campaign it seems to be succeeding), it's more fun to see how angry the professor gets at bending over for a set of Nissan Altima keys.

For those that don't want to leap, the joke is that the new Altima's personal driver recognition program does not require keys. It does not require one to give up on society. More about the campaign and promotion here.

Polarize Me

In the latest issue of Fast Company, (subscription required) Dan & Chip Heath, authors of Made to Stick, state “if you want people to like you, first decide who needs to hate you.”

As I’ve pointed out on this blog, you can’t be all things to all people if your brand is going to be meaningful and equitable. You need to be unique (differentiated), you need to ground that identity, and it must be profitable.

The Bros. Heath demonstrate through tea, vodka, and personal ads how one may differentiate or may just be a part of the “hey – I’m here too” group.

Ultimate?

Will the term Sanctioning Agent make it into the general lexicon? Special Agent Cragan is "interviewed" by the local arts and entertainment weekly.

This from the City Pages:

Ticking through the impressive list of big media outfits that have cited his work in the last few weeks—CNN, the Washington Post, even that "ultimate sanctioning agent," the New York Times—Dr. John F. Cragan looks pleased.

Ultimate? Dare I dream of the Ultimate Sanctioning Agent? It may be like a new Marvel superhero...or not.

Head Like A Hole: NIN's new SEO/Viral Campaign

Thanks to Field Agent Jason for this very interesting promotion from Nine Inch Nails. The campaign is a bit esoteric…or a whole lotta of esoteric. Read the Rolling Stone article and then look at some of the comments from music and marketing folks. What I like about the promotion is that it seems to combine an element of gaming and like good web applications or sites, it makes the user feel like they are making progress. In the end commitment is escalated to such a point that one will have to buy (or illegally rip) the album. Additionally, it seems to be "brand-right" in that the campaign is not all things to all people, but rather does a lot to shield the committed and bring in a certain segment.

Cool and weird.