Author Archives: Mark Orton

Hiding Innovations from Customers

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Over the Thanksgiving holiday I learned something quite startling.

The age-old problem of rolls of aluminum foil, plastic wrap, and other rolled goods jumping out of the box when you are dispensing them was actually solved years ago by a clever packaging engineer.

My sister-in-law, Meredith Morgan, Press Here to Lock Endan award winning chemistry teacher at Governor Livingston HS in Berkeley Heights NJ, learned this from her students one day when she was fumbling around in front of a class with a roll of aluminum foil.

“Dr. Morgan, don’t you know about the little tabs your press in on the ends of the box?”

She didn’t. But she learns quickly. Meredith was so impressed by this innovation that she demonstrated it to me on every box of foil, plastic wrap, and wax paper in the kitchen.

Now, you might ask, “What does this have to do with my business?”

This is a good example of a small innovation with very practical, day-to-day utility that has probably never been marketed beyond the end of the box. Yet, it works well, addresses an annoyance that every consumer has experienced, but, somehow the solution has remained unused, probably by most consumers.

Note that once you learn of this little push-in tab, you will probably look for it on the end of every box of roll goods you buy. You may wish to follow this discovery on the Web, search on Google for “press here to lock end”tab pushed in

A further example of hiding innovations comes from a customer advisory board meeting for the Albany NY region of a major telecommunications provider. During this meeting, attended by many major customers from health care, high tech, industry, and government, a number of customers said, in response to the comments of other customers attending, “They provide you with that service? I did not even know that they offered that!” Here were major customers of a large, successful telecom who were not aware of significant service offerings. Needless to say, this telecom learned that their marketing efforts were ineffectual and needed more work. If you current customers do not know of your product or service offerings, how could potential customers discover them?

Have you made innovations in your products or services but never told your customers about them? Do you make innovations without even involving customers? When was the last time you actually asked your customers what they like about your products? Have you examined how customers use your product or service? Do you have a formal process to gather customer feedback? Do you have a Customer Advisory Board to drive innovations?



Multitasking, Too Much Information, Interruptions, and High Performance

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Last week I ran into a little book (it really is little, 135 pages in a 5″ x 7″ format – very easy on the hand and eye), The Myth of Multitasking: How “Doing It All” Gets Nothing Done by David Crenshaw (Jossey-Bass: San Francisco 2008).

The initial chapters take up the question of humans as multitaskers. For those who need to be reassured that the common sense answer to this question is, in this case, more than common, that it really is the sensical answer, take the time to follow the narrative. Yes, this is one of those business books written as a story. In most regards I have come to think of the first such approach that I know of to writing a business book in a narrative story format, The Goal: a process of ongoing improvement, by Goldratt, wishing it had been the last. But, I digress.

Crenshaw introduces the notion that because we really are capable of only one task at a time, the appearance of multitasking is really a series of “switchtasking” in which we shift our attention back and forth among a number of tasks. This process incurs significant inefficiencies due to the housekeeping overhead of our brain keeping track of where we are starting and stopping with each task.  Significant errors also occur as a result.

The proliferation of information devices over the last decade has multiplied the opportunities for interruption and created environments which are perpetually competing for our attention. Email, cellphones, voicemail, instant messaging, text messaging, faxes, and more clutter our desks, pockets, belts, pocketbooks, backpacks, hands, and, ultimately, our brains.  As Crenshaw aptly states, “The reality, though, is that these things will make us productive only if we learn to take control of them….If you and I don’t set up a schedule and protect our time, we allow ourselves to be run over by the traffic of information.” (page 61).

Crenshaw goes on to suggest a strategy for doing just that, establishing a schedule. I have written earlier about the need to avoid Too Much Information.

In Crenshaw’s approach to meetings which calls for establishing “recurring meetings” where people regularly need to meet with you, I think that an opportunity for a deeper understanding of what is happening is missed. The first step with meetings is to examine the reasons for the meetings. Altogether too often meetings are symptoms of poor underlying business processes, especially decision making. Many meetings turn out to be about how a decision is to be made, what information applies, what are the boundary conditions and parameters, and so on. These meetings should be replaced by sound business processes that make the decision making faster, closer to the end user, and more reliable. Other meetings will turn out to be program or process status meetings. These too should be replaced with better business processes and visual status reports. In general a manager should view every meeting where they do not add significant, singular value as a symptom of opportunities to improve processes.

Crenshaw’s approach to developing a time budget seems to me just a re-run of the age old time management gurus’ spreadsheets in which we keep track of all activities for a number of weeks and then analyze them for waste. In my experiences personally, and with clients, this approach does not work well. A significant number of people simply will not maintain a log of their activities in sufficient detail and at enough length to really be useful. More troubling, very few are able to act on the results of the analysis.

I have come to relie on a Seize Your Time approach which I have written and spoken about frequently. Basically, this works as follows:

Take out your schedule for the next week. Block out two hours during which you will post on your door a sign saying, “Do Not Disturb”, turn off all communication devices including your beloved Blackberry (iPhones, too) and work without interruption on some valuable project that will move your organization forward.

You can read more about this in my Time Management postings and podcasts.

One area in which Crenshaw strikes on a rich vein of truth is his discussion of “business systems” and “personal systems”. Here he points out the fact that the “personal system” of the business leader becomes de facto the “business system” of the company.

Many business managers and owners act as though magically their behavior is disconnected from the behavior of their company. They engage in the delusional notion that people throughout their company do not notice how they behave, how they make decisions, what their priorities are, what their values in dealing with people and other companies are, in fact, almost everything they do or say (mostly do).

Fortunately, this is not true. Why “fortunately” you might ask. The answer is that the behavior of the leader of small and medium size businesses has dramatic and reliable impacts on the performance of the company. And, since we do know what constitutes high-performance in business leaders, the leader can learn the appropriate behaviors, actively model them in their own performance, and see the results cascade through their firm.

I applaud Crenshaw for taking on a popular buzzword and small-scale plague not only in business life, but also our day-to-day world. Multitasking is indeed a myth. I would be tempted to be more vigorous in my rhetoric and say that multitasking is a fraud and a thief.


Manias, Panics, and Crashes: a history of financial crises – book review

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I originally wrote this review in 2004. Seems like a good moment to pass it along again.

Manias, Panics, and Crashes: a history of financial crises, fourth edition by Charles P. Kindleberger (New York: Wiley 2000)

A recent Wall St Journal article described this book as a “must read” classic for anyone involved in financial markets. I have been involved directly in financial markets in two ways recently. First, I spent a year chasing around chasing angel investors and venture capitalists during the DotCom boom to fund Valuedge (the software company I co-founded in 1999 and left in 2004, though I still hold a large ownership interest).  Second, I receive quarterly statements for my 401K retirement investments. Primarily driven by my experiences with Valuedge and the phenomenal boom time of the DotCom era, I read through Kindleberger’s durable book (originally published in 1978 and never out of print since).

Although I have come to refer to the year 2000 as the Tulip Phase of Valuedge after the well-known Dutch tulipmania in the 1630s. Little did I know that financial bubbles, booms, and the inevitable crashes and depressions are a very common feature of capitalism. The first couple of chapters describe or mention dozens of bubbles and booms located around an amazing array of geopolitical centers. These have been focused on anything and everything: the well-known tulips in the 1630s; railroads; copper; English country houses; agricultural land; private companies going public (Britain 1888, US 1928 and IPOs 1998-2000); and many others.

The first lesson, then, is that booms and speculative bubbles are a commonplace feature of the capitalist world.

So, why do these bubbles and speculative manias occur? The answers are complex, involving human psychology, malfeasance, regulation (or lack), banks, and government. Read Kindleberger .

An important explicit message from Kindleberger is that economists’ models of “homo economicus” and “the market” are far from a useful mirror of what actually goes on. People are not even vaguely rational in their economic behavior and markets never constructively approach the model of a market found in Econ 101 or for that matter anywhere else that I have ever heard of.

This is not just an academic concern. In recent years our politics has displayed a dominant rhetoric that calls for the application of “market solutions” to almost every area of our lives, particularly those where traditionally we expect government to provide services, regulations, etc. Instead, we now reflexively think that “market solutions” are inherently more efficient and effective than government services. Liberals, trapped in their abandonment of even the moderate criticism of capitalism that the Catholic Church, for instance, engages, have provided no useful critique of “market solutions” as a universal policy approach.

At a practical level, this public policy fixation on “market solutions” combined with a generalized attack on all government spending, is driving a generalized impoverishment of the public infrastructure of our civil society and not coincidentally an enrichment of the wealthy and particularly the super-rich.

I recommend this book to anyone with an interest in the day-to-day political and economic life of the world.