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Review of Tap: Unlocking the Mobile Economy

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Title: Tap: Unlocking the Mobile Economy

Author: Anindya Ghose

Publisher: MIT Press

Copyright: 2017

ISBN13: 978-0-262-03627-6

Length: 240

Price: $29.95

Rating: 100%

I purchased a copy of this book for personal use.

I’m not a reviewer who gives out perfect scores like candy. In fact, I chose to use a 0-to-100% scale so I could provide nuanced ratings. I happily gave Malka Older’s debut novel Infomocracy a 98% because it was outstanding work but, for whatever reason, didn’t ring the bell for 100%. I believe I’ve given one other book, Intellectual Property Strategy (from the MIT Press Essential Knowledge series) a maximum rating. Tap, by Anindya Ghose and also from MIT Press, is the second.

The Mobile Landscape

Mobile devices are everywhere, with their spread continuing to gather pace as the prices of the devices and supporting services come down. Originally limited to voice and Short Message Service (SMS) communication due to a lack of bandwidth, smartphones now enable subscribers to make voice and video calls, search the web, and, of critical importance to marketers, engage in commerce. In Tap, Anindya Ghose of the Stern School of Business at New York University relates the results and implications of numerous academic studies of mobile commerce. The results provide a robust framework for marketers working in the mobile arena.

In his introduction, Ghose identifies four contradictions in what consumers want from mobile marketing and how we behave:

  1. People seek spontaneity, but they are predictable and they value certainty.
  2. People find advertising annoying, but they fear missing out.
  3. People want choice and freedom, but they get overwhelmed.
  4. People protect their privacy, but they increasingly use their personal data as currency. (p. 9)

Success in the mobile arena requires marketers to strike the proper balance among these four tensions.

Studies and References

After reading the first few chapters of Tap, I realized how many studies of mobile commerce have been conducted over the past ten years. As the author points out, tracking user movement and behavior, combined with the ability to test various forms of advertisements depending on context, provides a target-rich environment for academics and industry marketers to experiment. Ghose, who is a lead or co-author on many of the studies he cites, provides useful background on mobile commerce before dividing his coverage of the major forces of mobile marketing into nine chapters:

  • Context
  • Location
  • Time
  • Saliency
  • Crowdedness
  • Trajectory
  • Social Dynamics
  • Weather
  • Tech Mix

Each chapter reviews the literature relating to its force and offers insights into how marketers can use those results to the benefit of their clients and consumers. It’s impossible to cover all of the forces in any detail, but I found the discussion of crowdedness and trajectory particularly interesting. Crowdedness, as the word implies, refers to crowded conditions typically found while commuting. On a subway or bus, commuters typically pay attention to their mobile devices, ear buds in, and tune out their surroundings. Advertisers can take advantage of this focused attention by distributing relevant and interesting advertisements (and advertorials) during those periods.

Trajectory refers to a consumer’s path, either as movement between two major objectives (home and office) or within a larger location (movement within a store). When outside, mobile phones can track user movements based on GPS and accelerometer readings. When inside, the same tracking can be done using wi-fi signals. Each individual’s tendency for future movement based on their current vector can be exploited by marketers to make attractive offers.

The other seven chapters provide similar coverage. In addition to crowdedness and trajectory, I found the chapter on location (Chapter 5) to be particularly interesting.

Conclusions

Marketing is not a one-way street. Consumers are bombarded with ads and advertorial content, raising the mental cost of search and time (and data) spent waiting for ads to load on small-screen mobile devices. Many users employ ad blockers to reduced as much of the clutter as they can, greatly speeding up their usage experience but depriving them of potentially useful information. Also, as Ghose points out in the fourth contradiction listed above, consumers increasingly use their personal data as currency and don’t hesitate to refuse a trade if they feel they’re not receiving sufficient value in return.

Ghose is a leading expert on mobile marketing. His new book Tap summarizes the field’s most important research in a compact, readable package that I believe is indispensable for anyone interested in the subject.

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Do You Just Talk About It or Can You Do It?

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I just finished reading Gravity’s Kiss, a new MIT Press book by Harry Collins. Professor Collins is a Distinguished Professor at the University of Cardiff. In his book, he details the process by which researchers detected and documented the presence of gravitational waves. Collins himself is a sociologist, but he has been part of the gravitational wave community for more than 42 years. He’s picked up the language and understands the principles involved in gravitational wave science quite well, but doesn’t have the knowledge and training required to advance the science himself.

Collins is the head of the Centre for the Study of Knowledge, Expertise, and Science, so he can offer keen insights into his role in the scientific community. Specifically, he distinguishes between interactional expertise and contributory expertise. Interactional expertise, as the name implies, allows individuals to converse with experts in a field using specialized vocabulary and accurate knowledge at a reasonably advanced level. Contributory expertise, by contrast, entails sufficient training and experience to further the study of a field through analysis and experiment. It’s the difference between being able to talk about something intelligently and knowing what to do with that knowledge.

I’m in the iMBA program offered by the University of Illinois, which is an online master of business administration program designed for individuals who want to advance to the senior management and executive levels of industry. In that sense, the iMBA program is similar to an EMBA (Executive MBA) program than a traditional program, which I refer to as a “practitioner” MBA. For me, the difference is that students learn a variety of skills in areas such as finance, economics, organizational structure, and marketing. The goal is to provide us with the knowledge to make strategic decisions about a company’s direction and to understand enough of the basics in our focus areas to interact with subordinates in everyday charge of those functions. In other words, we gain a fair bit of practitioner expertise and a lot of interactional expertise.

As the owner of a small business, this level of interactional expertise translates to having more intelligent conversations with my accountant and investment advisers. On the practical level, my studies will help me make better decisions about the projects I take on. As a speaker and author, however, it means I will be relatively fluent in the language of business and have a credential to back it up. Now when I make contacts with individuals around the business world I will have the knowledge from my MBA, interactions with colleagues from industry, and experience as a business owner to draw on. Properly applied, those resources will serve me very well indeed in the coming years.

Unexpected Rewards

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My first lynda.com course went live on August 25, 2009. As of this writing, very early in the morning on February 17, 2017, I have 48 courses available with two more recorded and in editing. As I told a good friend last week, I’m a sucker for round numbers and milestones. For whatever reason, odometers hitting the next thousand mile mark, new decades, and reaching the next ten on my writing projects means a lot to me. I figured I’d get a card or maybe a small plaque when I hit 50 live courses on lynda.com/LinkedIn Learning, but I wouldn’t have been upset if it was just my wife and I raising a toast the night number 50 went live.

Late last month, a couple of weeks after course number 48 was released, I received a package from a company I didn’t recognize. The package contained a lovely portable game set with chess pieces that looked like real pieces, checkers, dice, and a pack of playing cards, all enclosed in a good-sized box with a two-sided chess/backgammon board that hinged in the middle and was trimmed with the finest Corinthian leather. The package also contained a card from the LinkedIn Learning crew congratulating me on reaching 50 courses.

No, they hadn’t miscounted. I’d had two other courses published, but one had been retired because the online resource it described changed drastically and the other for a combination of reasons that are both esoteric and boring. Those courses no longer appear on my author page, but they do in the LinkedIn Learning internal database. I was going for 50 live, but the team in Carpinteria cared about 50 total.

Researchers who study motivation make the point that unexpected rewards can have a positive impact on worker satisfaction. I love writing and creating online courses, particularly with the LinkedIn Learning team. Their attention to detail and counting my courses in the most favorable way possible makes their gift that much more special.

In Praise of Room Tone

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As an online course author, I record content that video editors, graphic artists, compositors, and other professionals transform into a final product. I edited two of my own courses, so I can say with certainty that there are plenty of folks out there who are much better at it than I am and deserve to be paid well for their work.

Room tone, a recording of silence in the area where the course is recorded (in my case, a sound booth manufactured by WhisperRoom), lets editors smooth out the rough transitions that result when they cut out part of a track. The team asks authors to provide 30 seconds of room tone so editors can lay it under multiple cuts without too many paste operations.

I use those 30 seconds to reflect on the course I just recorded, remembering the work it took to put the raw materials in place for the production team to work their magic. I say “magic” intentionally–if something seems effortless, you know a lot of work went into making it look that way. As I remember my own efforts, I reaffirm my appreciation for the work the rest of the team does to create, distribute, and promote the course.

Written by curtisfrye

February 16, 2017 at 4:29 pm

Sometimes the Secret is Effort

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I was recently accepted into the University of Illinois’ iMBA program, which offers students the opportunity to earn an accredited MBA degree in a fully online setting. I’m currently in my fifth class, but have supplemented my reading with studies and articles on business topics outside of the required reading. As you might imagine, process measurement and management come up frequently; references to Lean, Six Sigma, and other methodologies abound in the literature.

These frameworks use precise measurements to analyze the defect rate, or the rate at which failures occur. Those defects could be missed deliveries, flights arriving more than fifteen minutes late, or products failing within the standard warranty period. Analysts spend hundreds of hours examining processes in an attempt to squeeze a bit more productivity out of the system, whether by reducing the number of movements autoworkers make when attaching a door to a frame, picking items from warehouse bins, or building algorithms to limit the number of miles traveled by delivery vehicles.

Even though these analytical methods have led to substantial process improvements, there is a lot to be said for the empirical knowledge you gain from working within a system. Long-time workers have often developed their own efficiencies (management-speak for shortcuts) they share with their co-workers out of earshot of their supervisors so they don’t get in trouble for deviating from protocol. One prominent example of applied empirical knowledge is the dabbawalas, or tiffinwalas, who deliver hot lunches in Mumbai, India. Customers who want home-cooked meals at work often can’t bring their own food because the trains are too crowded for the containers or because their water supply isn’t available in time for cooking in the morning. Rather than eat at the company canteen, they order their meals from cooks around town. The meals are picked up and delivered by the dabbawalas through an intricate system of hand-offs that uses trains, buses, carts, bikes, and human muscle to get the aluminum lunch containers (the tiffins) to their destination on time.

The dabbawalas’ marking system uses color and single characters to distinguish district, neighborhood, building, and floor, in part because most of the dabbawalas left school after their eighth year. Transfers happen quickly and with minimal errors. As a testament to the strength of their system, consider that a process is considered Six Sigma certifiable if its defect rate is less than 34 out of 1,000,000 opportunities. The dabbawalas’ miss a delivery target at a rate of 1 out of 6,000,000 opportunities. That’s astonishing. And, yes, the dabbawalas are Six Sigma certified, but they didn’t find out about the award until a couple of years after it happened!

To what may we attribute their success? Their system is amazing and has been the subject of numerous studies, but remember how the tiffins are delivered. Once the containers come off their final train ride, they’re transported by humans on bikes, carts, and the traditional method of grabbing a bunch of lunch pail handles and lugging them up several flights of stairs. And the walas work hard. When you watch one of the YouTube videos showing the process in action, you can’t help but notice the focus, determination, and sheer effort required to move the tiffins on and off trains, sort them accurately, and get them to their destination on time.

Less than 100 years ago, my grandparents worked in a shoe factory without the benefit of union protection. Steelworkers, pipefitters, plumbers, and construction workers work hard and for long hours at difficult jobs today. Along with the tradesmen and women who drive our economy forward, the dabbawalas reinforce the universal truth that the best system is worthless if you’re not willing to make the effort required for success.

Tay, Improv, and Artificial Intelligence

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Kristian Hammond, a professor of computer science at Northwestern University, wrote a guest article for MIT Technology Review that offered his perspective on how the spectacular public failure of Microsoft’s Tay chatbot could have been avoided. Hammond brings up some good points, but I believe his analysis is incomplete.

What…Happened???

Many of you have probably heard about Tay, the youthful-seeming chatbot Microsoft released into the wilds of Twitter. Within a very short time, malicious users took advantage of the bot’s learning algorithms and caused it to create homophobic, racist, and anti-Semitic tweets. In a press release, Microsoft noted that they hadn’t had a problem when they tested a version of Tay in China, but I argue the team should have suspected the cadre of trolls on Twitter would take shots at the bot and try to make it produce offensive tweets. At the very least, the team should have built in a list of banned terms rather than use a strictly naive learning procedure.

Hammond, who is both a computer scientist and improv comedian, argues that using a combination of techniques inspired by Marvin Minsky and improv comedy could have helped avoid the worst effects of malicious targeting. I agree, and believe his notes assessing the difficulty of the AI problem Microsoft tackled are spot on. I do have some significant disagreements with his suggestions for how using improv techniques, specifically regarding show management, would help.

Improvised Doesn’t Mean Unstructured

Improv comedy groups, which rely on audience suggestions to make the show run, must determine how much control they want to grant the audience. Some groups are open to any and all suggestions, regardless of how offensive, and build the best scene they can given the subject matter. Other groups control their subject matter more closely. The trick is finding the right balance to do a show you’re comfortable with and that will attract an audience. But beyond attracting an audience, you must attract the audience you want.

Much, if not most, improv is done in bars. This consideration is especially true in the Chicago area, where Hammond works. That consideration means at least a portion of your audience didn’t know they were going to see an improv show, doesn’t want to see an improv show, and are drinking. A lot. Hammond notes that groups can manage their show by choosing which suggestions to ignore (perfectly acceptable) or by pointing out that it’s ridiculously obvious someone making deliberately offensive suggestions just wants to manipulate the show. He further states that a similar technique could work on Twitter:

Nothing neutralizes a bully as well as being called out. My guess is that if Tay pointed out that it knew it was being played in one-on-one interactions and provided attribution for newly learned “facts” when using them in public tweets, the shaming effect would have been enough to shut down even the nastiest attacks.

I believe Hammond is just plain wrong on this point. As Whitney Phillips, now a professor at Penfield College of Mercer University, discussed at length in her book This is Why We Can’t Have Nice Things, Internet anonymity shields trolls from the consequences of their actions. Trolls do what they do for lulz, laughs at someone else’s expense, and either don’t care or get lulz when their unattributed Twitter posts provoke someone enough to warrant a counterattack. Alcohol provides a similar shield for audience members watching improv shows in bars. The bar makes money off drinks…entertainers are just there to attract audiences and help maintain a steady flow of orders. Many talented performers, whether improv comedians or musicians, have lost gigs because they couldn’t get enough friends to show up and spend money each week.

I also disagree with Hammond’s depiction of the consequences for a drunk twenty-something audience member who “scream[s] out obscene suggestions that she will regret for the next two years”. First: been there, feel your pain. Second: she probably won’t regret what she said because she won’t remember what she said. For individuals such as her (or him), this incident is just one of many similar nights on the town. You just happened to be there when it went down.

Conclusion

The team behind Tay failed to accurately assess the environment into which they released their bot. That said, Microsoft can move forward by using another time-honored improv technique: the Failure Bow. When a scene, song, or on-the-spot pun goes poorly, the performer steps downstage center, faces the audience, says “I failed. Thank you.” and bows. Acknowledging the moment helps everyone move on, most of all the person who failed.

Management and Motivation

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I’ve recently investigated online courses at the MBA level, including taking a managerial accounting course through the University of Illinois. My work and other obligations piled up after I took that course, so I’ve held off taking further for-credit classes until at least January.

To supplement my work through Illinois, I bought a DVD series from The Great Courses entitled Critical Business Skills for Success. The series combines 12-lecture segments on operations, marketing, strategy, organizational behavior, and finance and accounting. The material is presented as an overview of each broad subject, with specific lectures focusing on topics such as the time value of money, rightsizing inventory, and evaluating mergers and acquisitions. There’s very little math and no homework, so the lessons are nowhere near as rigorous as the managerial accounting course, but it’s a great introduction to material I’ll study in depth later.

I’m watching the organizational behavior section now, presented by Clinton O. Longenecker of the University of Toledo. In his lecture “The Motivation-Performance Connection”, he offers some surprising results from a survey of corporate managers. His research found:

  • 85% of managers believe an employee’s motivation has a significant impact on performance
  • 79% believe that motivating employees is one of the most important leadership functions
  • 94% believe workforce motivation is important for overall operational success
  • 82% believe management behavior has a significant impact on employee motivation
  • 68% believe it is getting tougher to motivate employees

The numbers seem reasonable enough, so where’s the surprise? The surprise is that the first four items aren’t 100% (OK, 98% to account for the 2% lunatic fringe). It’s especially troubling to see the 9% gap between responses indicating belief that motivation impacts individual performance and that overall motivation is necessary for operational success.

I suspect there is a connection between those results and the final figure, that 68% of managers believe it is getting tougher to motivate employees. The economic downturn in 2008 led to significant layoffs and delayed retirements, which artificially flooded the job market with experienced workers who where either seeking employment or couldn’t afford to retire. Now that employment levels have returned to pre-2008 levels and the stock market has restored portfolio values, the labor market has started to tighten considerably, especially for highly skilled workers. When you add easy online communication about employment practices, increased expectations for good treatment, and labor mobility you have an environment where the privilege of coming to work tomorrow morning is no longer sufficient motivation for your employees.