Some people, in fact more than we would like to admit, are underestimating the scale and the power of non financial motivations. This is also true of freedom to express oneself too. I recently had a delegate offer ” why on earth would my employees want to express themselves?”

The web is not a separate world, so far in the distant, too difficult to reach and understand. It really isn’t Jupiter. It’s actually just a different one that is presenting a different set of rules, a change in the way we do things and allowing us to connect in a way we have never experienced before. It’s unprecedented.

A lot of us are having to unlearn things, lots of things. For those of you who think the web is isolating and responsible for a generation of people who don’t communicate with each other, think about this; all of us watching the Winter Olympics around the world at the moment, in our own living rooms, passive, one way, broadcast stuff, now who’s isolated?

There isn’t enough scarcity! There are hundreds of design agencies in each city, thousands of law firms, trainers, consultants, cafes, bed & breakfasts, widget makers and art galleries. Not to mention the thousands of photographers graduating from UK universities this year.

They are all ‘me too’ products and everything looks the same. A walk down any high street can be soul destroying. One store after another selling the same stuff, for the same price, offering the same deals with the same mediocre service. There is nothing scare in the high street anymore, just an abundance of sameness. And, again, it’s the same in most industries.

Things that were scare in the past are not anymore; products, food, technology, advice and much more. They have become easy to find and easy to purchase. Scarcity has shifted from the physical. When you sell something in abundance, you know it doesn’t take much for someone else to move in on your territory, sell what you sell for half the price, leaving you scratching your head, wondering where your business model went wrong. Wetherspoons is a great case study here.

Scarcity seems to be directly linked to value and desire. You ban a book, people flock to buy it. Wii have used scarcity tactics for their product but that’s not what I mean, that’s just simple old marketing tactics. True scarcity is trust, sincerity, authenticity, true innovation, long term relationships and collaboration, not Apple marketing ‘limited supply’ of the latest generation of iPhones!

Perhaps marketing is to blame. It was the ‘get out clause.’ Crap, ‘me too’ products were okay because huge investment in mass marketing managed to shift them. At the same time it possibly stifled innovation. The biggest US pharmaceutical company has $200 billion in sales, yet they only spend 14% on R&D and 31% on marketing and administration. At the same time new drug registrations have reduced from fifty a year in the 1990’s to about 20 today!

So whilst we have been concentrating on marketing that led to abundance, we forgot about innovation that created scarcity. Frankly speaking, unless you find something scarce in your business, the next couple of years are going to be very difficult. Business cannot sustain itself on an abundant business model where everyone is fighting for their part of the pond. Unless, of course, you have an abundance of cash to see you through until you find something scarce.

As employees (I can almost remember being one) we were focused on the elements of our job that involved the least risk taking. Not many of us are prepared to stick our heads above the parapet. As managers, we emphasise compliance, create procedures to try and control people. Invent organisational charts that not only mean sod all, but tell people who they are supposed to talk to. We pinch our peoples ideas, we reinforce the silos we have evolved even in small businesses and try and measure performance based on a system that focuses on extrinsic motivation rather than intrinsic motivation.

Then we complain like mad because our staff are not showing initiative, we have to make all the decisions for fear of mistakes. Teams don’t integrate, people only perform what is required and we’ve systemised, de sensitized employees so they don’t feel anymore. We couldn’t have frustrated them more if we had tried by honing in on the wrong things.

Concentrate on letting your people express themselves fully, allow them the freedom to take risk and make mistakes. Build cross functional teams to solve problems and remove silos. Facilitate rather than control. Measure the things that really matter to that person like being valued, working on meaningful projects and making a big bloomin’ difference to their work, their customers or colleagues. You can’t control the best people only influence their ability to develop some of your most important initiatives.

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.

In all the loudness, the shouting, the telling, the one sidedness of it all, we’ve forgotten what really matters the relationship. The relationship you have with your people, with your customers, competitors and collaborators. Communication is out (far too one sided) and, as we know, conversation is in (its far more two way.)

As Christopher Locke said in The Cluetrain Manifesto, “genuine conversation flourishes only in an atmosphere of free and open exchange.” That means respecting people’s opinions, feeling what its like to be in there shoes, understanding their values and concerns. Attempting to help solve solutions, not absolve ourselves from responsibility by building robust, meaningful relationships.

2010 will mean us becoming more ‘real’ and the web and social media will aid us in this mission next year. Many still think of the web as not real, yet it’s never been more real, more alive, more exciting. It generates millions of conversations everyday. It transports important information every hour and it enables people to stay connected every second. It’s time for you and I to get a grip and think about how the web will help you develop and sustain great relationships next year.

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!

My post is made easier today by this mega post by www.scottgould.me

The case studies are starting to raise their heads above the parapet and Scott considers the recent race for the number one spot in the singles chart between Rage Against The Machine and the X Factor winner. In his usual style, Scott gives us an insight into how social media is impacting on the ’spreadability’ of ideas with a well researched article.

For those doubters, case studies are starting to appear from Dell, to the new VW Golf GTI, to how the music business is going to work in the future. Scott’s post is well worth the read and is telling us something fundamental….things have shifted!

http://scottgould.me/rage-against-the-machine-the-case-study-in-spreadability-vs-reach/

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.