Let’s get started with the creative coder. Hopefully Ret Lauterbach, technical director at Plan.Net Technology and Stephan Enders, head of innovation studio in the Plan.Net Group, can help us figure out, what creative coders do for a living.
Why is e-commerce always reported as taking away from bricks and mortar sales? Is this really the competition? Shouldn’t all brands be embracing both aspects to deliver a cohesive journey? Shopping malls are as popular as ever, however, our purchasing habits have evolved. The problem is mall and retail experiences are stubbornly antiquated.
Our shopping experience typically begins in the carpark and yet these are a barren wasteland when it comes to delivering a positive sense of arrival. Then what about way-finding inside the malls? There has been some improvement in recent years, and the Dubai Mall App is a leader in this area, however the ongoing prevalence of traditional static grid-style location maps and the lack of smart apps that can identify your location while feeding you relevant brand information means the experience in most malls continues to be underwhelming and disconnected. Then once you enter the retail store, and if you are time challenged and shop for clothes like me by pointing at a mannequin and telling the sales assistant that’s what you want, then you are typically limited to the 5 or 6 static mannequins that are on display, despite the myriad of combinations created by that brand’s designers and displayed on their online site.
However, change is coming. Amazon’s purchase of Whole Foods for $13.7B suggests an overhaul of the retail experience is coming and could see an integration of their payless Amazon Fresh Pickup concept. Imagine the world without the horrible experience of queuing at the supermarket check-out…it’s almost too good to be true!
When I meet with a retail brand, the first thing I ask them is how they believe they are offering a genuinely different experience in their space. Often their positioning is very good online, but it is somewhat lacking in the physical space making it difficult to see what attributes will connect customers emotionally to the brand. Furthermore, if digital connectivity does not continue into the physical space then crucial data on the purchasing habits is lost.
Without the appearance of an ‘always on’ experience in the retail space, then the message is that the retail environment is always one step behind the online offering. To retain a top-of-mind position then brands need an integrated programme of in-store digital interaction, online activities, in-store events and co-branded experiences that reiterate how the brand is an integral part of our life.
This article was first published by People Retail magazine.
On June 27th 2017 I have given a speech at the „International Roadshow 2017: China Insights“ to German enterprises in Munich with the title „The Future is Now“. I have shared some current social and economic happenings in China that are influencing the future, including consumption upgrade, sharing economy, live stream, and cash-free lifestyle, at the same time I have unveiled some business and marketing potentials embarked behind.
What does creative mean?
What a question.
Ideally, creative is something one just is, without any lengthy discussion.
However, if I must.
Creative is new, unpredictable, capricious.
A smartass take on this is that being creative is a paradox. It is the meaningful combination of things which do not belong together.
And then you suddenly just get it.
The word “meaningful” is important. Randomly combining thoughts, feelings and forms usually ends in confusion. Creative combinations on the other hand must make sense – but ideally not until they are in the mind of the consumer. If he or she completes the chain of thought, decodes the ultimate meaning of a film or a picture then, test institutes please take note, the effect is much stronger than when everything is pre-digested.
Actually, “consumer” is a word that I don’t really like to use. Yes, ultimately, advertising is concerned with selling, but the more messages rain down upon us “consumers” the more we only take heed of the relevant ones. That can be the much-quoted “right product at the right time in the right medium”. Programmatic is the key word here. However, the crucial factor is that the better a message is packaged, the stronger – again – the effect. I prefer to side with “Saint” Sir John Hegarty, and refer to “the public” rather than to “consumers”. We want to sell to consumers. We want to entertain the public. What is good is that a well-entertained public buys more than a well-informed public. After all, we speak of a “buying mood”.
What is good entertainment in a creative form? It’s more than just fun. It’s a new, stimulating thought, for example. A new perspective on life, giving rise to the observation, “Wow, I’ve never really looked at that in that way before”. That is what we remember, that’s what we like to tell other people about.
Good creation thrives on strong feelings. Being enthused, touched, unsettled, buoyed up, amused, everything that moves you. Tedious lists of information do not move me. I am moved by good stories which end with a surprise. Human stories which turn my prejudices and my neatly ordered thoughts inside out and upside down, which develop a dynamic of their own, never to serve their own purpose but that of the brand. This is easy to say, but damn difficult to realise every day.
Of course, creative also means unyielding, untiring and tough. Here’s a good thought: it is not ideas which set good creatives apart from bad ones but their refusal to give up.
P.S. I’m quite proud that I didn’t use the current buzzwords “disruptive”, “diversity” and “digital transformation” a single time in this text. But if you need to, my dear public, just add them mentally where appropriate and then you too will get it. 😉
This article was published in German at W&V.
Serviceplan Health & Life creative partner Mike Rogers on judging a category with endless ways of execution.
They say that a picture is worth a thousand words. And that’s probably never been truer than it is today. It’s no surprise that people are communicating less and less through text these days – and more and more through visual means on mobile messaging apps and social media platforms in particular.
Instagram may have kick-started this trend a few years ago on social media, but Snapchat dragged it into the personal messaging space and other platforms have followed suit, so much so that now, rather than using digital imagery as a way of simply documenting and presenting our lives, we actively use visuals to communicate in the place of text. Snapchat has been the poster child of this movement over the last 3 years or so, tripling its daily active users to over 160 Million. Not content at being left behind, Facebook has copied pretty much every visual messaging feature that Snapchat has popularized on each of its four platforms – Instagram, WhatsApp, Messenger and Facebook.
While facial lenses and basic image editing have become a bit of a commodity on social messaging channels though, both platforms are trying to branch out from this to a more ‘augmented reality’-style future where users can actively overlay digital elements onto whatever they are looking at in real-time. Think Pokemon Go, although much more interactive and responsive to your actual surroundings. Snapchat describes it as “painting the world with 3D experiences”.
Snapchat may have been the catalyst for this trend, but it seems that Facebook are innovating at faster speed. At the company’s recent F8 event Mark Zuckerberg launched a host of new 3D camera effects, highlighting a renewed focus on creating a ‘camera platform’, an onus on the camera not simply being a tool used just to capture images, but to communicate too. He even went as far as to say that the camera needs to be more central than the text box in all of their apps.
This is a way for Facebook to fully insert itself into the real world, to become the link between your smartphone and everything you see around you. Speaking to BuzzFeed News, Zuckerberg expanded on this approach, “Facebook is so much about marrying the physical world with online. When you can make it so that you can intermix digital and physical parts of the world, that’s going to make a lot of our experiences better and our lives richer”.
Demoing these new 3D camera effects, one Facebook engineer pointed his phone at a table and a 3D propeller plane appeared on the screen, flying around a water bottle on the table top. Another used his phone’s camera to turn the room into a planetarium, with planets and stars spread out across the ceiling. Another took a normal photo of a face, then manipulated the expressions into a smile and then a frown.
Facebook also showed off various 3D scenes created entirely from a handful of 2D photos. The scenes had real depth to them, allowing viewers to tilt their head to see behind a bed in a room, or peer around a tree in a forest. Users could dim the lights in the image of a room, flood it with water, or even leave a digital object in the room that would still be there for someone else to discover at a later time.
The ultimate idea here is to turn the real world into an extension of Facebook itself. While Zuckerberg highlights examples like using Facebook’s camera to view pieces of digital art affixed to a wall, or to play a digital game overlaid on a table-top, you can see the long game here – dragging elements that would normally appear in your feed, for example, into the real world. But as well as pieces of content from your friends and family, surely this means ads too. As the traditional Facebook Newsfeed takes a back seat to messaging apps, this could be one way of keeping this type of content relevant going into the future, as well as expanding their ad inventory in the process.
But what will this mean for brands when consumers are living in an augmented world, constantly interacting with and visually manipulating their surroundings? And what happens when we are all wearing AR glasses or contact lenses 24/7? Visions of a Minority Report-esque world where ads bombard us at every turn spring to mind, but surely there must be another way. I guess we’ll have to just wait and see.
This article was published first in the Campaign Middle East magazine.
Florian Haller, CEO of the Serviceplan Group, explains in an interview with Marketing Review St. Gallen on how the agency group is positioned and on current developments in marketing. He was interviewed by Sven Reinecke, Director of the Institute for Marketing at the University of St. Gallen and Friedrich M. Kirn, CEO of MIM Marken Institut München GmbH.
At the University of St Gallen (HSG) we teach students marketing and management. However, many of the people employed by agencies have not studied these subjects. You are a rare example of someone who has. Do you think that your training was helpful or would you choose a different approach now?
I benefited greatly from my time at HSG. And that’s because the advertising agency business has undergone some extreme changes over the last 20 years. Our core business used to be driven by gut instinct and was primarily creative; I suspect a technical angle would not have been at all useful then. That’s all completely different now. Advertising agencies operate in a much more strategic and complex way. Advertising used to run on four or five channels; now we’re faced with twenty to thirty. Not only that, these channels are also supposed to be interconnected. Apart from that, numerous new careers in the sector have developed over the years and now we can’t even imagine the advertising landscape without them: just consider the digital forms of advertising. Business models have also developed enormously. It is nowadays essential that the management of a company the size of ours is based on strategic and theoretical principles. In this respect, I have no doubt that my course at the University of St. Gallen provided me with fundamental knowledge of great value. I think it’s a shame that so few high-achieving graduates from prestigious universities choose to work for large communication agencies. However, maybe we should take it upon ourselves to put out a stronger message about the jobs and promotion prospects we can offer.
What were the events in your career so far that you would consider particularly “critical” and which have brought you insight?
Each of the key points in my career was a real “aha moment”. Starting, obviously, with the course in St. Gallen and the “St. Gallen Management Model”. The most crucial thing I learnt was that managers should not settle for a superficial approach, but must recognise structures. The understanding and development of structures result in the design of successful strategies. Contact with businesses was strongly encouraged at St. Gallen: we gave presentations and contributed to manager seminars early on in the course. Even though we were quite young, it was quite normal for us to come into contact with senior management from Swiss and European companies. As a matter of course, this resulted in contacts which have endured now for decades. While I was at university, I realised how fantastic advertising can be. Incidentally, it was not clear at the time whether I would go to work in my father’s agency at some point.
Starting at Procter & Gamble after I graduated was an important time for me. Going to Brussels and working for a pan-European brand in an international team was great fun. The management helped us young marketing professionals feel personally responsible for our brands and we related very strongly to them. Over the six and half years at Procter & Gamble, I gradually realised that I would eventually want to work more independently so I joined my father’s agency.
How do agencies differentiate themselves from the others? Positioning, vision and principles at most PR agencies are very similar with little room for individuality, the focus is on brand management and creativity.
That’s true. It is really difficult for an agency to set itself apart from the others in public perception. That is simply because agencies must live up to certain values. Customers expect agencies to be highly creative and not to damage their brands. It’s in their nature. There are no uncreative agencies.
We distinguish ourselves on the market with our four ‘i’s: innovative, international, independent and integrated. We are independent and partner-led. We have an integrated structure, which, it should be noted, is not just theoretical, but actively part of our practice in the Houses of Communication. In our agency, traditional PR people work closely with media planners, data analysts and market researchers. Each agency within the group is a standalone unit. We have depth of specialisation but also integration. We achieve this by giving the teams geographical proximity and grouping them into customer teams. The other values that distinguish us are innovation and internationality.
Companies are increasingly pursuing a “one-brand” philosophy. Serviceplan operates as a group, but maintains very many “subbrands” and regional links. Is that not contradictory at some level? Is it still necessary to maintain such a pronounced national presence in these global times?
There is a distinction between the service level and the brand level. At the service level, we do have separate agencies for specialist areas. For example, one undertakes nothing other than business intelligence. Another specialises in search engine optimisation. We see these specialist agencies as tools which customers can buy individually. Very specific expertise is developing in the specialist units. Creatives look for other creatives and people working with technology need technology enthusiasts. As a group of agencies, we need to create the right environments and find employees that fit into the various areas. On the other hand, we are trying to cut back on the brand level. We don’t want each service area to have its own brand. That is not sustainable on the market. That’s why we have a brand for the creative product in the broadest sense: Serviceplan. We have a brand for the ability to deal with channels – Mediaplus. The Plan.Net brand represents the digital segment, Facit covers market research and our newest brand, Solutions, deals with the realisation side of the business. The service areas are organised under these brands.
Does it make any sense at all now to maintain a regional presence in so many countries and on so many continents or should agencies rather look for synergies in the individual markets?
The Serviceplan Group is the first German agency to have a significant international presence. We have either our own offices or partnerships in other countries. We currently have a presence in more than 35 countries, ranging from France to Dubai to China. Although Germany is so export-oriented, no German agency has ever operated on such an international level as Serviceplan. This is unusual because German companies are valued for their reliability and technology-oriented thinking, amongst other qualities. Global players such as BMW want to work with partners who can design international advertising campaigns and localize them for the country in question, so a company needs different expertise in the various markets. Anyone planning a campaign for the BMW 7-series must understand the Chinese market where many more cars are sold than in Germany, for example. In a nutshell: our customers are adamant that internationalisation is essential. I must point out that internationalisation is hugely enriching for the Serviceplan Group. Kick-off events at which teams from China, Europe and the USA get together and jointly develop a vision are memorable experiences for me. Internationalisation is unquestionably also an emotive matter for us. It is clear that our expansion concentrates on hubs which are economically significant. It is important to us that the agencies in the different countries are independent and look after their customers. Synergies are created between countries, of course.
Serviceplan’s “House of Communication” model has integration at its heart. I don’t want to ask you about your favourite campaign – no one likes to rank their customers – but which Serviceplan campaign best showcases integration?
(He laughs) We provide every customer with the service that is right for them. I am proud of that. Our day-to-day operations produce real flagship projects, of course. I am proud of much of the work we do for BMW in which we combine creativity, media and the digital approach. A good example is the launch campaign for the i8. It is quite simply a fantastic product and developing the campaign for it was a pleasure. And then there’s the global aspect and the roll-out on every channel. This is a challenge even for a large agency. Everyone likes to see a satisfied customer. However, there are also less high-profile cases which I find really exciting. For example, we developed a campaign for the German Bar Association that worked mainly on a viral basis. Innovative thinking is paramount in a case like that.
360-degree communication is frequently called for – however, SMEs with modest budgets prefer an 80:20 approach. Can you give examples of when “integrated PR” might not be the aim and what the importance of branding is?
In my view, the term 360-degree communication is not very helpful. The primary aim today can’t be to advertise on every single possible channel. Firstly, there probably is not enough money in most cases and there is also the question of the logic behind it. Innovative concepts do take careful account of the channels available, but try to find an intelligent way of linking that makes sense sequentially.
The current trend towards digitalisation presents us with more than one issue. Increasing digitalisation has the effect of bring the competition closer together. I think this makes the brand more significant. There used to be high barriers to entry. Customers had to go into a shop for advice before deciding on a new jacket. Nowadays we have the Internet and it is normal to carry out the comparison with a series of mouseclicks. It is therefore easy to defend the proposition that brand work today is as important as never before.
Research is currently examining the subject of “sponsor activation”. Why is sponsorship in many cases, despite the high costs of rights, insufficiently used and integrated in brand management? Are there any examples of best practice?
The Serviceplan Group has a small business unit which is concerned specifically with sponsorship. This is an exciting subject and sponsorship can be enormously effective advertising. At the same time, sponsorship will never occupy a central place in agency operations. Sponsorship decisions are often made with a great deal of emotion and caution is advised especially in planning a budget. Anyone who invests in a sponsorship, which usually involves a considerable sum of money, must ensure that enough remains in the budget to follow up with advertising. Only this approach makes sponsorship efficient.
The communication landscape is diverging into many parts; it’s almost impossible to keep track of it. The digital advertising sector is dominated by two major players. What will communication and advertising look like in 2015? How are corporate budgets changing, what is happening to the work done at agencies and by other market players such as market researchers
I’m not at all concerned about this. There are many subjects not discussed in the current hype surrounding digitalisation. Going forward, companies will still need partners who can develop creative ideas. Even in digital advertising, there is a huge need for consultancy. Agencies which rely on their purchasing power in the media will disappear, because computers will take on this work. There are still no answers to the questions of which customer data I can have, what price do I pay for it and how do I segment the available data? The need for consultancy will grow, not diminish. When I translate my channel strategy to Google or Facebook, it is probably quite clear which channels my budgets are being used for. That is not something that advertising customers will want. Our future opportunities will lie in using different sources and putting together efficient offers for our customers.
Looking ahead: what will Serviceplan look like in 15 years time?
Let’s be happy if Serviceplan gets through the next five years successfully. Joking apart, whatever happens, we will be even more digital in 15 years time. The proportion of digital services at our company is already over 50%. Today, 30% on average of our customers’ advertising budgets is spent in the digital area. The topic of data will be important in the future. Serviceplan will be doing more content marketing than is currently the case and will be even more international. Despite the justified scepticism concerning the frantic collection of data and the analysis of big data in many countries on this earth, we in Europe must be careful that we are not left behind. I am a committed defender of data protection and the controlled use of data, but the future will be to a great extent digital and the business models developing from this future are also digital. If we want to participate in this massive trend, we must remain open to the digital world. Particularly in advertising, we must ensure that it is not only companies in the USA in their safe harbour that do everything that is not allowed here and earn good money with it. It is therefore important to stop people being afraid of Big Data.
Finally, can we have a few words on your commitment to Switzerland, where Serviceplan of course has a branch?
Happily. My father is Swiss and so am I. I did my military service in Switzerland and I’ve studied and worked there and I have many reasons to be grateful to the country. All things considered, we are the largest Swiss agency in the world. Switzerland is also an important market for us, because it is a hub for companies with international operations. For example, we work for ABB international global, which is based in Zurich. I feel very at home in Switzerland.
This interview was published in Marketing Review St. Gallen.
It’s refreshing to see the new ad for the Samsung Gear VR that focuses on VR’s ability to let the viewer experience something rather than just watch a piece of content.
When brands become communicative self-starters without classic advertising. Tesla, MyMüsli or Westwing have shown us how it’s done
At one time, the advertising world was highly predictable. Three things formed the pillars of plannable marketing success: a big budget, extensive reach and clear positioning. This classic mix is certainly not outdated if someone wants to sell, say, gummy bears, toilet paper or beer.
Another approach is that of not making the classic media the exclusive central focus of a campaign – which often works like a charm: Tesla’s off-the-wall carmakers, for instance, have achieved a brand awareness level of 60 per cent in Germany according to You Gov. Tesla is not a unique case: The breakfast cereal makers at MyMüsli or the furniture shop, Westwing, are brands who have largely achieved their fame by taking completely new routes. At the same time, their products, like their makers, are very different from one another. Nonetheless, they have certain common points that could be noted down in the new textbook for modern brand management:
A good story
A new product must have its own story. But not just any old blah-blah story. It has to be one that grabs the attention, that is different, and that interests people. And, of course, it has to be in touch with the zeitgeist. That means: successful brands pick up on mega trends – but in an unconventional, indeed sometimes even surprising, way. Tesla is surfing the wave of massively increased environmental awareness that has been building over the last few decades. It all makes sense so far. In addition, they are also triggering their very own brand surprise moment. Because in terms of design their cars are the absolute antithesis of accepted eco-style and functional, home-made solar-powered mobility. Their groundbreaking electromobility is housed in an extremely elegant, exceptionally desirable and very expensive car. It’s an elitist product that clearly separates smart ecological awareness from conventional green worthiness.
This game also works if you take it down to a smaller scale. MyMüsli has picked up on the trend for organic foods as its basis. It then fitted that trend with rocket engines, enriching the product with individuality plus convenience. An organic muesli that you can create yourself with online clicks is ornamented with personal fantasy names, and is then delivered by courier directly to your breakfast table. Pour on the milk and get stuck in. Simply laid-back, tasty and healthy – that’s the way we live and eat today. On top of that, in order to show the maximum achievable, the product developers have got their calculators running red hot: according to the company, there are 566 quadrillion possible muesli variations. No-one can try them all in a single lifetime. You really can’t get more variety than that. It’s a great story that catches the fancy of every muesli maniac, and one that people enjoy sharing. However, since online sales and online marketing alone are not enough, for some years MyMüsli has increasingly been banking on its own shops in busy locations in relevant conurbations, staffed with real-life individual muesli consultants.
Westwing has also picked up on the quick & easy feeling brought to us by the internet. Some of their smart people took a look at what’s happening in our homes. There is hardly any other nation that spends so much money on furnishing their homes than we Germans. In addition, we really love being at home – what is known these days as “cocooning”. So it’s more than logical to find some way of sparing us a journey: the previously unavoidable trip to the gigantic out-of-town furniture megastores. Instead, this clever start-up conveniently delivers trendy branded furniture and interior accessories to your home. Since furnishings are largely chosen by women, obtaining new armchairs and tables is now no more difficult than buying a pair of high heels from Zalando.
Westwing plays very well on the psychology of consumers. A clock can be seen ticking on the Westwing sale portal. If you don’t order within the remaining time you get kicked out, and can’t get the trendy product anymore. It’s something we’re familiar with from classic retail… only while stocks last. Only after all received orders have been bundled does Westwing order the goods and deliver them. But customers pay upfront.
The stars on the top of the tree
Brands that move people, arouse interest, enthral, turn customers into fans who then become part of the brand. Participation is the new mantra.
Additional help is provided when management has a substantial media presence. Because successful brands and their stories need narrators. And they have to take to the stage. It’s something one has to want and be able to do. Self-marketing was long reviled as personal vanity. Indeed it is still widely considered a dirty word. Those successful individuals who have mastered the high art of personal presentation to perfection couldn’t care less. They do their thing – and benefit the marketing of their brands. Tesla’s Elon Musk is the virtually ideal protagonist in this regard: A billionaire visionary as the face of the company. A man who not only wants to level e-mobility’s way into the mass market, but who is constantly making headlines in the worldwide press with other sensational projects. Sometimes it’s reusable rockets, another time he’s thinking about colonising Mars, or building a tunnel beneath Los Angeles that will catapult pedestrians from Point A to Point B. A positive madman, but one who delivers perfect storytelling, thus continuously recharging his manufacturer brand.
Although the German counterparts are far more modest, they are just as effective. Both the MyMüsli management troika – all former students from Passau – and Deliah Fischer from Westwing, are being celebrated as showcase founders, and given awards. None of them has any qualms about appearing on talk shows or blowing their own trumpets for their brand in a high-profile way. And they always make a fresh, personable impression. Deliah Fischer, who studied fashion journalism, has certainly contributed the most to Westwing’s high profile to date. A power woman who is well-received, and who is the face of a vision, an idea and, ultimately, of a brand. Those who buy something at Westwing are always buying a little piece of Deliah Fischer’s spirit as well. Just like at Tesla, where the ingenious founder Elon Musk is somehow always there as an invisible front-seat passenger. A really good feeling.
Discover the new possibilities
These days start-ups usually have a different business model and they do their advertising differently too. They are consistently living out the game change in everything they do. And that’s a good thing. Three days after MyMüsli launched in 2007 it already had 16,500 hits on Google. The founders later filmed their first TV ad – entirely on an iPhone – because their funds were limited. In the meantime the company can also afford to invest in classic advertising. However this is often also in the shape of modern, interactive formats.
MyMüsli was a huge media hit because the founders recognised the signs of changing consumer interests and adapted them intelligently. Tesla is a media self-starter, powered by Elon Musk. The marketing experts from Rocket Internet – who know how to promote start-ups online – are behind Westwing. With the examples of all channels from social media to influencer marketing. It is the art of winning people over without a big budget and without classic advertising. This works exceptionally well on the internet which is why it is often the preferred medium for the new brand marketing.
The agencies too have long since had a rethink. They accompany their clients throughout the entrepreneurial process from strategic product development to integrated, interdisciplinary marketing.
Just to get it out of the way right now: I don’t like buzzwords. They are like annoying mayflies that seize our attention but serve no useful purpose. Their intrusive buzzing makes it more difficult to formulate clear thoughts. And too many mayflies at once block our view of what really matters.
That’s why I’m not overly fond of expressions like “agile” and “4.0”. Too often people slap these terms on in front of or after everything they can think of with the idea of exuding a little disruptive transformation zeitgeist and to signal: I’ve got my finger on the pulse, and I (supposedly) have everything under control.
Four letters that really spell things out
In contrast, I greatly appreciate the acronym VUCA – which has its roots in the US military world of the 1990s – because of its longevity and expressiveness.
The four letters stand for: Volatility, Uncertainty, Complexity and Ambiguity. Four harmless letters that really spell things out. Because they very accurately describe both the current condition our world is in, and what we can expect in exponential doses for the future – with consequences for the organisation and the individual that are as yet very difficult to predict.
We are all well aware that the environment in which we move has an absolutely elemental influence on both the strength of an organisation’s value chain, and on every employee. VUCA thus challenges us to systematically question the existing rules of successful company management – whether we want to or not.
Because: methods, structures and doctrines that secured value creation over the long term in the past, have now already become – at best – toothless tigers. In a worst-case scenario they can cost an enormous amount of energy and destroy value creation.
But what does that mean for you as a CEO, CDO or CMO in concrete terms? In a VUCA-influenced world, how is substantial value creation produced? What are the new success factors of an entrepreneurial elite that is experimenting on the very front line with courage, curiosity and a sizeable portion of pioneering spirit?
I have been engaging intensively with these questions for around ten years. The key empirical findings can be summarised in three core theses.
1. Embrace, don’t fight.
Why fight against something that can’t be changed anyway? That costs a vast amount of time and energy. Time and energy that we’re lacking elsewhere – where we really can effect change and move things. So one of the elementary VUCA slogans is: Choose your battles wisely. And accept that our world is volatile, uncertain, complex and ambiguous. Stop complaining about the world as it is. Instead, interpret all occurrences and events as development helpers, as invitations to develop – for yourself, as a team, as an organisation and, ultimately, as a society – taking things to a new level of consciousness that is capable of seeing opportunities in a new light. Entirely in keeping with Einstein’s thesis that problems can never be solved with the same thinking as was used to create them.
2. Haste is the opposite of fast.
When the carousel of life revolves ever faster, one runs a high risk of succumbing to bustling actionism. Fast, faster, fastest. So that at the end of the day, we can all slap each other on the back and congratulate ourselves on how much we’ve achieved in such a short time. Without realising how much the corporate organism is overheating. And without paying attention to what truly is value creation – and what isn’t. So one of the VUCA success factors is: learning to handle speed consciously.
In this context, “consciously” means not being driven but rather deciding in a concentrated way when to step on the gas (namely with regard to decision-making and implementation processes) and when reducing the speed is time well-invested (for example when it comes to integrating people into change, strategy or vision processes). To put it another way: In those places where communication significantly boosts value creation). The time required for this is won not by working faster, but by smartly working “differently”.
3. We-intelligence instead of I-intelligence.
Around 90 per cent of the data that exists worldwide today was created in the last two years. This volume of data doubles every year. The global knowledge society is increasingly dependent on thinking and working in networks – and realising that the individual (the individual person, individual department, individual organisation or individual nation) is not in a position to resolve VUCA challenges alone.
The future belongs to those employees or organisations who succeed in accessing official and unofficial networks as a resource, and using them for the good of society. When it comes to making the right decisions quickly, rigid hierarchies are obstructive, while clear rules and a shared understanding of the purpose of the common activity are beneficial.
Organisations that succeed in capitalising on the we-intelligence of colleagues have a lead.
They make use of a large number of new instruments. These range from hybrid role models (on Project A a person is the manager, on Project B the technical expert) to team self-organisation (for instance, the team leader is elected by his colleagues), to more effective steering instruments (collective goals replace individual goals) through to innovative decision-making methods (effectuation, consultative individual decision-making, etc.)
New rules for a new time: VUCA throws the existing rules of successful corporate management overboard. And invites us to successfully shape our future according to new rules with curiosity, passion and the gift of truly listening. In keeping with Karl Popper’s thesis: “Instead of posing as prophets we must become the makers of our fate.”
Let’s embrace VUCA and make the best of it – together!
For anybody who wants to explore this matter in greater depth, I can recommend the following VUCA classics (in german):
• Reinventing Organisations by Frederic Laloux (2014)
• Organisation für Komplexität by Niels Pfläging (2014)
• Denkwerkzeuge der Höchstleister by Gerhard Wohland und Matthias Wiemeyer (2007)