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Change management- questions, chipmunks, kick offs and major population

In my previous post I dealt with customer experience management and how CEOs and members of the board discussed about it in a seminar called Customer Oriented Strategies which was held on 16th of March 2017 at Aalto University School of Business. I thought that (at least) one of the seminar presentations deserved its own post.

Kenneth Strömsholm the CEO of Veho Oy, gave very interesting and inspiring presentation about customer experience and change management or how he put it in his title: “Managing Customer Experience and Unbearable Toughness of Change”. He highlighted that you can’t talk about these issues separately. They are bonded to each other. While listening to Mr. Strömsholm, I was thinking that we, service designers, are full of enthusiasm for carrying out our design process. We should also give time, thought and tools to support change in organization. Change resistance can make our efforts, to create amazing or just better customer experiences, worthless.

Kenneth Strömsholm have created four very catching and humorously description of the invisible obstacles of change.

Questions

First obstacle is human nature and how most of the people meet the new situation. He explained that the first three questions people are asking when they are confronting the change for the first time:

  • First question: What does this mean for me?
  • Second question: Still what does this mean for me ?
  • Third question: Could there still be some aspect to figure out what does this mean for me?

Mr. Strömsholm pointed out that as a leader, you can’t underestimate the importance of these questions. You need to accept that these are the questions how people are trying to found out their place in a new situation. You need to give them time and try to find answers to these questions together.

Chipmunk -effect

The second inMaaoravavisible obstacle Mr. Strömsholm has named as a Chipmunk –effect. Chipmunks are in their chips with their heads down and no matter how hard you try to yell your brand new message, the message goes over their heads. You need to repeat your message 11 times. Each time there is a chance that one or even few chipmunks have their heads up and they will actually get the message you are sending.

Kick off

The third obstacle Mr. Strömsholm has named Kick off. He explained this obstacle as follows. It takes seven months for board of directors to build a strategy and five minutes for personnel to understand it wrong. He pointed out that as a director, you can’t expect the personnel to walk away from Kick off –meeting, immediately take their saws and go to work according to your new strategy. After Kick off, the work for getting your strategy alive, starts.

Major population

The fourth obstacle Mr. Strömsholm has named Major population. For people, employers, it’s always easy to agree with the major population. Most of the people are skeptical and thinking: “We should not do anything, eventually these directors will calm down and whole thing about change will be forgotten”. As a director you should just carry on and step by step get the major population behind the change. Then there is only minority left against the change, and nobody wants to be part of minority.

Three phases of change and the feeling

Mr. Kuva1Strömsholm summarized three phases of change. First you need to get information, then you can understand and after that you start to believe. Feelings in the organization are effecting the length and strength of each phase.

Very catchy speech, next time when designing services, I will indeed bond customer experience and change more deeply together…and think about chipmunks.

Building strong customer experience

Kirsi Heikel, the host crystallized the idea of the seminar: Strong customer experience- easier said than done. The seminar was held at Aalto University School of Business on the 16th of March. I was invited to the seminar as an alumni and speaker of the Service Design course organized by Aalto Pro –Aalto University of Professional Development. When listening to seminar’s prestigious group of speakers, I had my service designer lenses on and I compered these directors’ thoughts against design thinking. I was interested how these CEOs, investors, entrepreneurs and professional board of members discussed about importance of customer experience, how high a level do they place customer experience aspect of management and how they actually manage it.

Listen to your customers

Kenneth Strömsholm the CEO of Veho Oy described unambiguous aim of Veho’s experience world as follows: “None of the cars, service, spare parts or car hire cannot remain unsold because of a poor service experience.” Customer experience is one of the cornerstones of the Veho’s success. He gave an example. In the past, the car was always presented in the same way. There was actually specific manual how to give a presentation. Nowadays the most important is to listen to customer’s needs and viewpoints and give specific answers to questions in need. Veho have moved from strict quality manual way of operating to individual and flexible service. Mr. Strömsholm raised digitalization as another example of Veho’s customer experience thinking. He pointed out that digitalization strategy is the best way to separate digital services from all the other services. Services need to be designed as a whole.

Fail and Innovate

Jonas Kjellberg is a serial entrepreneur, investor and one of the founders of Skype-service. Nowadays he is leader of the BCG Digital Ventures. He is a specialist in creating new business models and commercializing new products and services. He started his presentation by saying that he is not going to talk about his successes. He is going to talk about his failures. Because through failures he has learned the most. Mr. Kjellberg discussed about changing the game in the business. He said that every organization spends time and money to efficiency and functionality. How about innovating something that delights your customers? First you need to figure out what is the friction free story you are selling. You need to go to fundamentals.

  • What customers love?
  • How to use new technology?
  • How to innovate in zeros? Remember: Innovate don’t imitate

Keep it simple

XXL

Toni Stigzelius is CEO of XXL Finland. He has been responsible for launching the XXL chain in Finland. In his presentation, he raised three rules to build good customer experience in XXL.

  • Keep it simple stupid. Simplicity in process and easiness to navigate.
  • Listen. 70 % of sales is interaction and emotion.
  • Attitude. Employees can learn all about the sports equipment, but attitude you can’t change.

After the presentations I took my designers lenses off and I still saw the same. Jihaa, we are talking the same language with these successful leaders: listening, designing as a whole, customer needs first, failure is for good, innovation not imitation, simplicity and magnificent attitude!

Living in a bubble

Ever worked in a multidisciplinary team? Everything worked out well, people got along and you achieved amazing results together? Or maybe there were some challenges along the way?

Service Design Network Finland organised an event at Futurice on 14th of March about the power of multidisciplinary teams. In a service design spirit, there was both talking and doing.

We had  several insights from both in-house and agency service design on the topic. Eeva Raita from Futurice was talking about embracing difference in creative team work. People are attracted to similarity. If you’re a designer , you like to hang out with other designers. IT people spend time with other IT people. The problem is that too much cohesion is bad for creativity. Desire for harmony makes people inhibit their pursue of new ideas and strategies. We all live in bubbles and there’s nothing wrong with that. But to be able to work creatively in a multidisciplinary team you need to step out of the bubble. How to do that?

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There was a mini-brainstorming workshop on working with multidisciplinary teams. Each team was brainstorming on challenges they had faced and possible solutions. Almost all teams came up with some kind of game ideas. One idea for example was that the team would play escape room game together. Many of the ideas were so called  “happy poops”.

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Here are the results from my teams brainstorming session:

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I think that game idea works well because it helps to break the ice in the team when you have some some fun before getting your hands dirty on real work.

Tuija Ojanen from Palmu shared a good point that you need customers voice to work together. Plan, participate and iterate with end-customer. Don’t forget to include the business controller of end-customer in steering group. For the steering group (who have the money but no time) give small individual comments from customers, not result summaries.

Service design meets RAI –evaluation system

Be open-minded

Yes, I have heard it, and I think I have even preached about it. Be open-minded. First and for most. That is how service designer should think, no doubt about it. Still, I have found myself being by and by too blindsighted. Last time this happened to me was few weeks ago. I waited my turn to give a presentation about service design in health care in a seminar which was concerning work with geriatric people (Kehittyvä vanhustyö 13-14.2.2017). Funny thing when going back in my mind to that situation, is that in my own presentation, I had quotation from Dalai Lama: “When you talk, you are only repeating what you already know. When you listen, you may learn something new.”

What is RAI-evaluation system…actually?

Just before my presentation there was Development Manager Rauha Heikkilä from Finnish National Institute for Health and Welfare given her presentation about RAI-evaluation system and its benefits while evaluating service needs of geriatric people. Abbreviation RAI has come to my knowledge when I have been doing service design with geriatric patients, nurses and doctors. But I haven’t really understood what it is. My preconception about RAI –evaluation system was that it is something that consumes a lot of face to face time from patients, nobody actually uses the results and something that is already out of date. So I was little bit suspicious about the subject, I have to admit.

Rauha Heikkilä started her presentation by talking about customer focus in different levels of producing services: strategic, tactic and operative. She pointed out that Primeminister Sipilä’s government programme for advancing Health and Welfare is executed by top projects. One main objective is to take customer oriented approach to development of health and welfare services. Then she started to talk about RAI (Resident Assessment Instrument) and how it can help to achieve this objective. RAI is a tool for decision-making and to support management. It helps to

  • predict the population service needs
  • develop services that are based on actual needs of customers
  • target customer services according to their needs
  • monitor the quality and the performance of services

 When Rauha Heikkilä moved on with her presentation my ears grew bigger. These were the words that talked my language. I started to pay more attention. I started to actually listen. I could have said same sentences in my presentation about service design and how it can support management. What I learned was that RAI- evaluation system is a comprehensive system for evaluating, monitoring and improving the quality of care and service. It is standardized system to information gathering and an instrument for observation of service needs of a customer. RAI –evaluation is examining customer’s ability to cope in everyday life, mental and cognitive condition, social performance and wellbeing, health condition, nutrition and feeling of pain. RAI –evaluation is examining patient as a holistic person. It is carried out with a customer. Yes, in co-creation with customer. Evaluation process starts with interview and observation of a person himself and his peers. Again sounds something that could have come out of my mouth while giving my service design presentation.

What I also learned was that RAI -evaluation system is a support system for different service providers to give more personalized service and service that answers better to customer’s actual needs. Geriatric patients with chronic illness and disability use variety of clinical and support services. With RAI-system there is always background knowledge about customers overall situation and thus it is possible to do better decisions for taking care of the geriatric patient. RAI-evaluation system enables planning standardized services for typical customer needs. Also service profiles can be planned with RAI-evaluation system.

Same goals. What can we do together?

While listening the presentation I didn’t find any conflicts between service design and RAI –evaluation goals. The goals are actually the same. I started to think what could be accomplish by combining these two methods. I brought up this idea to Professor of Geriatrics Jaakko Valvanne in a lunch discussion. He is acquainted with both methods and specialist with RAI- system. He clarified me that RAI – system is well deployed in Finland. However, he has seen that even in the best organizations, it really takes years to be able to use the results so that they actually help in developing services.

From the user’s (nurses and doctors) point of view, RAI system is difficult, complicated and troublesome in many ways. Professor Valvanne pointed out also that the results of the RAI –system should be first the results for the patient and his peers. Secondly results of organization. But are they easy to understand for ordinary people? Are they presented in a way that awakes interest? Could assets of service design help to make RAI –system more approachable, make the system more usable by understanding user needs better, simplify the process and the results by visualization and maybe make less serious by adding some fun and humor to it?

When thinking other way around, people who work in the field of geriatric patients, are acquainted with RAI –system. Could it be easier to accept service design as a serious development method, if these two are methods are offered hand in hand? There are similarities but also differences between these two methods. RAI –system is a data bank for designing services. Service design is more of qualitative and emphatic method.  If using these methods simultaneously, could it raise the benefits of the results in a different level?

Blending methods and thoughts

While finishing our lunch discussion with professor Valvanne we were both excited about this idea of service design meeting RAI –evaluation system. This seminar and enriching discussion after that cleared out to me that something unexpected may happen when you let yourself to be open. There is no only one right way of doing things. There are many. And if you are clever, you make these many ways overlap each other and you might find results that lead you to something totally new.

We might have another lunch and discussion around this subject with professor Valvanne and start something new by blending our thoughts more.

The Informed Consumer and Insights about Insights

Insight – inspiration – vision. Those were the some of the magic words mentioned at the Informed Consumer study research in Stockholm. The study is conducted by a Nordic insight agency Kuudes and the content consists of current and future trends and motives underlying consumer behavior. The results of the study were first presented in the beautiful Fotografiska museum on Valentines day 2017, and in addition to the release of the results fantastic quest speakers were there to inspire the enthusiastic international audience.

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The first speaker, Chairman & Advisor from Berghs School of Communication Pär Lager woke everybody up by stating that “The opposite may also be true”. His big question was how to constructively find our the other possible truths that exist in every problem and solution. Insights play a big role in finding the opposite truths, and Lager framed that as outside driven company culture, which means that consumers, their behavior, motives and consumer trends should always come first.

An example used by Lager was Amazon. In the 2009 financial crisis they were able to grow substantially, and did that by selling something that has always existed in a channel that was not new. What was new however was the way they were able to capitalize on the consumer behaviors and to build new offerings by combining existing technologies to build a unique marketplace. The example is of course revolutionary and often cited, but it clearly states what can be done with a clever use of insights.

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According to Lager, insights need openness to change, and without that they are useless. It’s good to remember that even though the world is moving fast, many things still evolve very slowly. Because of that there is a great risk to get stuck in the old ways, and that is of course to be avoided at all cost. And again, this is where the alternative scenarios come to play!

Next up Head of Consumer Design at Alra, Tytti-Lotta Ojala inspired us with her talk about brand-led innovation and the role of insight in that. From a real-time survey done during her speech, it was quite clear that what’s missing from organizations when it comes to making good innovations are bold decisions. Those can be done by backing them up with clear insights and vision about the consumer and the future. Ojala stated that in order to have successful insights, they need to be defined somehow. Organizations need to think about what insights mean for them, and what do they try to capture with insights. Only then can the organization talk the same language.

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For Ojala, insight is a vessel for engaging creativity. It is not a fact, but rather a vision, and indeed needs visionary mindset and creativity to be successful. Insights should inspire people in the companies to build brands their consumers grow to love. Ojala also stated that the stronger the value proposition of the product is, the less you need to do to get noticed. A strong proposition stands out from the competitors and catches attention, but you have to think big and try to change the game. This is the way to create love from the consumers.

Last but not least was time to release the findings from the Informed Consumer study. The results contain 7 consumer segments and 3 underlying trends in consumer mindsets: significance, self-importance and moderation.

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Significance is the need to understand our purpose, and in consumption behaviors that means that the consumers are looking for significance in their choices. This is often done by grounding daily choices to personal values, which can of course vary greatly. Brands that are able to take a stand and be authentic are interesting to people looking for significance, and in fact 58% of consumers want authenticity form their products!

Self-importance is more about creativity and self-expression, and according to the study 54% of consumers value creativity and trendiness in daily life. Consumption is then focused more in creating meaning and experiences, not just fulfilling basic needs. Individuality and status are drivers for consumption.

Moderation is about loyalty, modesty and longer relationships with brands. Consumption is often cautious and consumers want to make smart choices. Routines play a part of this trend, and 75% of the consumers say that they make choices based on routines. Minimal but still good quality is important, and cutting down on less important things can be considered a pleasure in itself.

There results presented were from the Swedish study, and obviously there are differences between cultures. Kuudes has previously conducted a similar study in Finland, you can find the results here. A highly recommended read!

Ahto´17- lean service creation

ahtologobanneri-5855During this week TEKES (Finnish Funding Institute for Innovation) and Futurice  organized a free LEAN service creation workshop as a gift to Finland celebrating it´s 100 years of independence. Participants were from development functions from various industries representing the variation of Finnish companies. Naturally the bigger purpose of the event was to spread the word of agile, customer centric development methods, to boost Finnish economy. So on a grey Wednesday morning we were 500 hundred participants in 60 groups of 4-5 people together with 50 000 Post-its eager to master the method.

What is lean service creation?

According to my understanding Lean service creation is a service design process developed by Futurice.  It´s generated by applying commonly known best practices and company´s own experience from client work. It combines the principles of lean start up methodology with design thinking principles and the Strategyzer business model canvas.  The phases in the lean service creation process follow pretty much the double diamond theory frame for service design process. All the material is open source and can be found here: https://leanservicecreation.com/ .  The method is aiming in creating excellent digital services, but I would highlight, established companies can apply the process to all development work. Why is this needed?

Love the problem not the solution

A research by Harvard business school´s Shikhar Ghost points out very clearly that 75 % of all startups fail. One reason behind the phenomenon is that business school methods are not directly adaptable to startups. Those principles are based on business logic and creating five year plans as a newly founded startup only has a service and it is still figuring out, what the business logic will be. Situation is pretty much the same for established companies, when they are aiming for service innovations. For a startup setting energy in creating business plan would be almost like writing phantasy stories as there are too many assumptions included.  But how often established companies fall into the same trap? My rough estimation is too often. We have the tendency to fall in love with our own solution and forget the customer experience. This is where the lean startup philosophy, or in this case the lean service creation steps in.

businessproblesmDuring the one-day work shop we were facilitated through the phases of the process by learning by doing in it practice. Despite the fact that we only had 6 hours of time, and we were not able to try all the phases nor to dig deeper in to the phases, the main message was clear: Love the problem and test and validate everything with your customers.

You can be the change

Although we only worked like 16 minutes with each of the phases continuing straight forward to the next step of the process, the work shop mastered to demonstrate the power of the facilitated process and design thinking principles. At the end of the day all the teams had developed really good ideas, that most had some potential for further development. We felt inspired and energized. I guess the commonly known story in many company is not the lack of ideas, but the ability to develop them further. It´s also very true that in many companies the culture doesn´t support the design thinking principles. Easily this leads into a conversation, where a bigger transformation is needed. But don´t fall into this trap, because then nothing is changed.  Here you have a very practical tool to start working with your ideas. You don´t need to be a designer to  start  figuring out, what motivates your customer.

Information about Ahto´17 can be found from the facebook group.

#designthinking #servicedesign #leanstartup #leanservicecreation #agiledevelopment

 

A Morning About Facilitation vol.2 – Virtual workshops and meetings

In a previous post I summarized my experiences and takeaways from a facilitation demo by Grape People. The event was inspiring and the content felt useful for everyday work, so I decided to attend their virtual facilitation demo as well. Fitting for the topic, the demonstration took place online so I was able to see firsthand in my own experience how virtual facilitation works. The demonstration was done via Skype, and participants were able to contribute by using the annotation tool.

Virtual meetings and workshops are becoming more common, as it often makes it easier to arrange a common time without asking people to travel. Therefore it was great to hear new ideas and tips for how to best facilitate virtually. Many of the same principles apply to virtual and face-to-face meetings, but the fact that people are not present in the same room gives an extra twist to the situation and some extra responsibilities to the facilitator. Just like in face-to-face meetings, most often the meeting process is the biggest reason for bad meetings and workshops. The workshop target should be clear from the start, and the facilitator should be well prepared with a structure and timeline for the meeting.

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