It must be in our genetics, we seem to complicate even the simple stuff. Often, in an attempt to control, feed our ego, or basically seem more intelligent than others we create complications. We are then seen as the expert, whereas others, merely ignorant or confused.

Factors that are simple to follow we over complicate like systems and procedures. Government is a specialist at this. Systems are meant to simplify life but often they result in bureaucratic, unwielding, overwhelming, overburdened clap trap! It’s as far away from innovation as you can get.

Yet, the complicated things like relationships, we try to simplify and, in the worst case scenario, we try to systemise. Systemise something and you suck the life out of it. No wonder as employees, customers and business partners, we get frustrated, angry, hurt and overwhelmed.

Relationships are meant to be challenging, exciting, varied, rich, diverse. Systems and procedures are not.

We all have a tendency to spend enormous amounts of time on the wrong things we think make us competitive. Our product, the way the store looks, how we market, what marketing messages we communicate, how we look. And, when we are really scraping the barrel, our price. Okay some of these things are important, but not to the exclusion of what will really make us competitive in the future. Perhaps we are looking in the wrong place?

In fact, the most predominant, fundamental, important, radical, distinguishing factor that makes you competitive is your people. They control costs, implement procedures, deliver customer service, develop new products, conduct research, find new ways of doing stuff and get things done.

We, on many occasions, fail to look at competitiveness correctly, realising that sometimes, we have it the wrong way round. Stop adding things to your product/service and start creating value for your people. Comprehend that 2010 will be about relationships (see last blog). They will be your worthy asset. Products come and go, relationships must not, they cost too much to replace.

Over the Xmas period I’m writing an eBook considering how business is changing including the fundamental shifts we are experiencing and, also the key things we possibly need to get back to. It will cover between 50 and 100 words all supplied by my colleagues, clients, followers, connections and fans. Although, I may throw a few into the mix.

I’m hoping to provide an overview of some critical factors that will influence the future of work and business. Some of you have been kind enough already to provide some interesting topics such as; value, adaption, substance, competition, talent, time and feel.

It would be great if you could join in! I’ll reference you in the book and provide a hyperlink to your website or blog. Hopefully, I can provide some thought provoking ideas and thoughts with a bit of humility too. Can’t wait for the conversation to start once it’s published in February/March 2010.

If you want to contribute a word or two, please just make a comment on this blog, direct message me on www.twitter.com/annholman or, email me at ann@annholman.co.uk

Thanks!

If you run a business, department or division, your role is about to change, big time! Your ego better go and bury itself comfortable cos’ it’s going to be spending a long time there. As a manager you have huge responsibilities. Those self absorbed, selfish, controlling vain days are over. They may have been suitable for a functional state of management but they no longer endear you to a world that has suddenly realised that it’s about relationships. Behaviour will have to change.

Perhaps, business is moving from the ego status to the self actualisation role as in Maslow’s Hierarchy of Needs? Your new accountabilities will not be based soley on financial performance or achievements based on numbers. It will centre on:

1. Developing relationships that are mutually beneficial.

2. Developing differentiation, even if it is unfortunately based on price.

3. Creating a common purpose that is authentic, makes a difference and has meaning to people.

4. Building trust and credibility.

However, enabling people to feel valued is going to be your most significant contribution. Financial performance? That’s just the result of getting the stuff above right, we’ve just always managed it the wrong way round!

I think we are heading for more trouble, well some brands both big and small. We’ve spent the last fifty or so years (perhaps more) encouraging several generations of customers to demand more and more even when they didn’t need it. Now those demands are outstripping businesses ability to meet it.

Overnight, technology, people and economics have collided to create a new market, a new desire, a new need. No longer can we control and exploit customers. We can’t keep them on the threshold of our businesses and carry on with a transactional relationship. We have to invite them in to fully participate in what we are doing.

Like it’s employees/managers, customers are just as important stakeholders as the owners of the business. The word ’shareholder’ will have a very different meaning in the future.

The walls built up over so many years between customers, employees, management and shareholders are collapsing. This dictates a new type of relationship and commands a new approach. Openness, honesty, transparency, sharing and collaboration that result in mutual benefits and value will drive business performance and, more importantly, business sustainability.

It’s time to throw away the job descriptions, brush aside ego’s, change the emphasis to people, realise your product is as good, or, crap as your competitors and be aware that not one person has the power/decision making role anymore. Leadership too is fundamentally changing.

The impacts of these changes are creating new vulnerabilities and ’sore thumb’ opportunities for businesses. It will mean friction and tension. Fabulous, however, usually great ideas and innovations come out of that!

Business in the past was valued on it’s financial performance, it still is. Increasingly, it will also be based on influence, followers and fans. If we own something we try to protect it. In fact, we can become over protective. For years we have been conditioned to think that we own stuff at work; our team, our customers, our products. Tesco thinks it owns it’s suppliers!

This over exuberance can be detrimental, if not a tad delusional. We can spend lots of money defending something that we actually don’t own. The future, we know, will be based on the value of our relationships with our fellow humans. You can only part own a relationship. You will only part own a product as we collaborate more, you have never owned your people, especially in a war for talent. And customers just ain’t buying that ‘priviledge’ thing anymore.

You don’t own the buildings you work in, you probably don’t own that car you drive and your company probably only lease that computer and mobile you use. We need to shift our mentality from one of ownership to partnership. That way we can work positively on the things that really are meaningful and rationally focus our efforts.

It’s an interesting question. If social media is to, actually it has, taken over and because of the demands of the new marketing approach that’s emerging, why do we need a marketing department at all? In his blog post http://thebrandbuilder.wordpress.com/2009/10/29/becoming-p2p-principal-characteristics-of-the-new-social-business/ Olivier Blanchard sets out that a P2P business (people to people) doesn’t even need a Social Media Director citing that social media is completely embedded in the organisation. He has a point!

Social media removes the need for one department to be responsible for marketing. Indeed, perhaps if a company does have a marketing department, they are completely subverting what social media can do. Marketing, in the future, will be about valuable conversations, enlightening collaborations and strong connections, all wrapped snuggly in a ‘word of mouth’ blanket!

In fact here’s a suggestion, if we are moving from B2C/B2B to P2P, perhaps we need to merge human resource and marketing departments. They have a lot in common in the suggested P2P environment. Retention of staff/customers, loyal customers/staff, great conversations, cultural shifts in expectations and bevhaviour, the way we treat people, the relationships we have, brand equity and so on and so on.

It makes sense, there is so much synergy between the two disciplines now that it would be a shame to miss an opportunity to add value to the P2P relationships we have both internally and externally. By the way, Olivier’s post is well worth the read!

There are four types of business behaviour at the moment in response to the social media revolution:

1. Talk to the hand – the ignorant and the arrogant.

2. Tolerant – but little acceptance so far. It’s a fly in their soup. Fearful of losing control is at the forefront of this behaviour.

3. Dipped toes – have tried it, quite liked it, the water’s warm, but don’t know what to do next to embrace it fully.

4. Riding the wave – hey they are way ahead of the game….

If you can admit to being in either 1 or 2, go look at this video. Clay identifies huge implications to the cross over to the business application of social media.

http://www.ted.com/talks/lang/eng/clay_shirky_how_cellphones_twitter_facebook_can_make_history.html

If you’re not convinced after this, I give up, you are not listening!

It’s easy to get stuck in a cycle of movement and we can all be forgiven for thinking that our business is changing, doing new stuff and improving results, when in fact, it’s not. You’re just going round in circles, embedded in what I call ‘revolving door’ syndrome.

Take a look at the new Bailey’s advert http://www.youtube.com/watch?v=YjW4iFuO-WU They have added a ‘coffee’ alternative to their product range under the pretense that it’s product development but it just feels like a desperate attempt to compete with new entrants to the market. Its false, this isn’t change, it’s just messing about.

Many companies are guilty of ‘re arranging the deck chairs on the Titantic.’ Look carefully at you business, as each month and year passes, are you just revolving or are you truly evolving?