Does it Matter Where Ideas Come From? Sourcing Innovation at McDonald’s, Starbucks, and Your Organization

When I first began to write this article I thought I’d start with a little history and facts to compare McDonald’s and Starbucks. I even thought that it would be nice if I created an infographic that showed the comparison. But, I’m not going to do that. If you hop over to Nasdaq or your favorite stock peering site you’ll find that both stocks are doing well. At the bottom of this article I’ve included links to fun facts about each of the companies.

Both companies have provided great returns to shareholders over the last 10 years. Both of these companies have a large and growing worldwide presence, a huge number of employees and partners. No, I’m not talking about those things because they are not a predictor of future performance. Heck, even each of the companies will remind you of that in their safe harbor statements.  And remember, there are plenty of darling stocks that perform, at least until they don’t.

Remaining culturally relevant and connected to consumers share of mind and wallet
No, I’m going a different direction. I want to talk about things that aren’t so closely tied to stock performance or revered in annual reports and press releases. I want to begin a discussion of how each of these companies source innovative ideas and ask readers if you think that this topic has any bearing on a company’s ability to be sustainable, viable, cultural relevant, and able to gain a share of your mind and wallet.

starbucks infographics on mystarbucksidea
MyStarbucksIdea has launched 277 ideas from customers, and celebrated its five-year anniversary March 2013. (Graphic: Business Wire)

Starbucks practices on sourcing innovative ideas
Starbucks encourages idea submission from anybody, inside or outside the organization and even encourages you to vote, share, discuss, and see other peoples ideas as they are made visible on the My Starbucks Idea website. Experience it for yourself at
http://www.mystarbucksidea.com

One of the reasons for the My Starbucks Idea website is that CEO Howard Schultz wanted to improve the customer experience. He felt that the 60 million customers visiting its stores on a weekly basis might have something to say about what the future Starbucks experience should look like. In that sense Starbucks customers are encouraged to co-create the future. In the first five years of the My Starbucks Idea website, from 2008-2013, 150,000 ideas have been submitted from customers with 277 of those being implemented.

Connect with Delightability on LinkedIn

McDonald’s official policy on unsolicited ideas
McDonald’s, on the other hand, doesn’t have an equivalent My McDonald’s idea website. If fact, they make it very clear in an FAQ that resides on their website exactly what their policy is concerning ideas, “It is our company’s policy not to consider unsolicited ideas from outside the McDonald’s system. Because we are always working on new ideas and strategies within the Company, we do not review ideas from outside McDonald’s to avoid confusion over the origin of an idea. We realize that we may be missing out on a few good ideas, but we had to adopt this policy for legal and business reasons.” When companies cite policy they appear less human as in the sign I saw at a McDonald’s in the Seattle area.

Did you know that McDonald’s delivers to its customers in 18 countries? But, if you want delivery in your country don’t bother asking or trying to vote on it. Remember, your ideas are unwelcome and irrelevant. I find that a little offensive. I also find it a little off-putting that the McDonald’s system, as they put it, does not include the customer. Any organization’s business system, or promise delivery system as I call it, should have the customer at the core.  Imagine the burden this places on Hamburger University and Franchise owners. They must innovate and own all of the good ideas in isolation, a tall order for them compared to the 60 million customers that visit a McDonald’s each day that may actually have some insights to share and ideas how to improve the McDonald’s experience. For my mental model on a promise delivery system, check out Chapter 8: Promise Delivery System of my book.

If we are voting on which company and brand will be more culturally relevant across populations and feel more human and alive, I’ll vote for the Starbucks brand. If, on the other hand, we are voting on which brand will attract me for the late night drive through or clean restrooms available during a road trip, I’ll tip my hat to McDonald’s. But, I’m only one customer. I’d like to understand how each of their practices around ideas makes you feel as a consumer? Which brand speaks more to you? 

Try This!  What about in your own organization – does it matter where an idea comes from? Could it come from customers? Does it matter at what level of the organization the idea comes from – Senior Vice President versus the most recent hire in accounts payable? What about a supplier? Do you know the answer and if you do, would others in your organization see it the same as you do? Start this discussion inside your organization.

My book is the Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations.  Read it and you’ll be better equipped to design more remarkable customer experiences and then make those experiences come to life in your organization and the business landscape. You’ll also build a more relevant and enduring organization.

Here are those fun facts on Starbucks and McDonalds.

About the Author

image of Greg Olson Managing Director of Delightability and author of Experience Design BLUEPRINT

Gregory Olson is a consultant, speaker, and author of The Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations.

Connect with Greg on Linkedin, Facebook, or Twitter.

Connect with Delightability on LinkedInConnect with Delightability on FacebookConnect with Delightability on Twitter

Exercises and mental models in the book will build your confidence and competence in envisioning better possibilities and then making them come true, whether you are working alone or alongside a team. Chapters in the book that especially pertain to this post include:

  • Chapter 1: What Makes and Experience?
  • Chapter 5: The Rental Car Experience?
  • Chapter 6: Aiming for Remarkable, Unbroken, and Generous Design
  • Chapter 7: Improving the Journey
  • Chapter 8: The Promise Delivery System
  • Chapter 9: The Neighborhood
  • Chapter 14: The World of Work Has Changed
  • Chapter 14: From Argh to Aha!

See a book summary. Read the book reviews on Amazon. Read The Experience Design Blueprint on Kindle or any device using the free Kindle Reader application or read the full color print edition.  Already read it? Please connect and let me know.

When Metrics Fail it is Time to Change the Conversation: a Walk in the Park with an Abandoned Shopping Cart

abandoned shopping cart found on sidewalk in the evening - Delightability researchLurking beneath the metrics you’ll find the truth. This truth may have slowly crept up on you and suddenly poked you in the eye as a new reality. But, you say, “We have these metrics and this is the way we measure, and see, and do things around here.” Exactly right, but exactly wrong too.

Here is an easy target to pick on. Abandoned shopping carts litter the landscape most everywhere. City Councils have metrics and want to hold stores accountable for their wayward carts. Stores have metrics and are stuck between cracking down on their patrons and giving them freedom to take carts as needed. Biases are at play too. What looks like a theft problem to the store’s Loss Prevention Manager is a transportation problem to the “bus stop mom” or “urban retirement dweller.” Once you get past the bias that this is a purely homeless problem, you’ll see that kids, and moms, and grandpas all play a part in this problem. Even police are being called upon by municipalities to “do something about this menace.” One police department recently posted on their Facebook page a reminder to the public, that it is a crime to take a shopping cart off of store premises. Each of the stakeholders, save the shopper themselves, have metrics, but who is right here?

The world has shifted – shopping carts have gotten smaller and more maneuverable, the price of gas has continued to rise, and some have opted out of owning personal transportation in favor of walking or using public transportation. But, amid these changes, stores are probably blind to the transportation realities their customers face.

While stores have found more and more ways to understand our shopping preferences and probably have metrics related to the foods we buy and the prices we’re willing to pay, they really have little understanding of why we choose their store, how we got there, and if a grocery cart will be on our list of items to take home today.

So, there you have it, amid all of those metrics the human behind the customer has been forgotten and that is exactly wrong. Imagine if the metrics for a given store revolved less around how much orange juice we purchased and at what price and instead examined who the shopper is and what transportation they used to get to and from the store. That might just spawn some new services and brand loyalty to the stores with courage enough to change the conversation.

“Don’t get so set on your goal that you lose your humanity.”
Cicero, Roman author, orator, & politician (106 BC – 43 BC)

If you are a grocery store leader, city council member, or other stakeholder to the problem and would like to talk, please contact us. We’d love to share with you the findings of a public workshop we hosted where we brought people together from all walks of life to discuss, dive into, and propose a range of possible solutions to the abandoned shopping cart problem.

Abandoned shopping carts can be seen around most any town, Anytown, USA or beyond.

View the workshop photo album and see the Big Idea Toolkit in action. Learn more about the large format visual planning system that we used to guide our workshop discussion.

about the author

Gregory Olson’s latest book is L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true. The models in the Experience Design BLUEPRINT are equally relevant to organizations of all types and sizes including start-up entrepreneurs, nonprofits, for-profits, and government.

image of Greg Olson Managing Director of Delightability and author of Experience Design BLUEPRINTGregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help.  Gregory also serves as a volunteer board member for Oikocredit Northwest, a support association for social and impact investor, Oikocredit International.

Is Your Flight Plan Ready for Your Small Business?

What, why do I need a flight plan you say? Because more than half of the pilots involved in mishaps did not file a flight plan before the accident flight. You might not fly a small aircraft but, if you are a small business owner or entrepreneur, you need the equivalent of a flight plan too. Otherwise you may be an accident waiting to happen.

Flight plans for small craft pilots are filed with the FAA so there is a record of where the pilot intends to go. If the pilot doesn’t arrive within a window of time then a search is initiated.  The lack of a flight plan has led pilots and their craft to go missing for days. If you want the benefits of a search and rescue party, you’ll need to file a flight plan.

So what does this have to do with running a small business? Well, you too, should be prepared and know where you are going each and every day. How long will you fritter about before you get down to business? Will you be distracted by social media, the next phone call, the insurmountable email inbox? If you are an emergency room doctor or a first responder your plan might be to respond and react. But, if you are an entrepreneur or small business owner wanting to grow your business, you’ll need to cut through the noise and be more proactive. You’ll also want to identify the people that can help you – your small business search and rescue; these might be customers, partners, or vendors.

Like most entrepreneurs and small business owners, you likely have a long list of things that get shoved off to the back burner waiting for another day when there is more time. But more time never actually does come right?

Today is no different than yesterday and tomorrow will look much the same. You only have 24 hours in a day. When it comes to time, there is no aristocracy of wealth. Genius or laziness is not rewarded or punished with any more time.

So, to make the most of what little time you have you must make a daily plan. At Delightability, I use the daily flight plan. It’s a free download; you can use it too.

The 3 Legged Stool

3-legged-stool of operations - promoting value - delivering value - balanced personal life - Delightability LLC.

There are a few visual indicators at the top of the flight plan that serve as reminders. The first is the 3 legged stool. Any small business owner struggles with balancing between running a smooth operation, delivering on whatever their product or service is, and performing the sales/marketing/business development function. Even if you are good at all three, you’ll struggle with the limited time available in a day. With the 3 legs being all consuming there isn’t much time for personal life – that should be you sitting atop the well balanced 3 legged stool. But, get out of balance and you and your personal life topple to the floor.

The 3 Funnels

Exposure Adoption Loyalty Funnels from Delightability LLC

The 3 funnels visual is a reminder that no matter what business we’re in we have customers to serve. Those customers didn’t start out as customers, they started out as prospects. And hopefully, they’ll move beyond being customers to become loyal advocates. So, the 3 funnels are the exposure funnel where you turn suspects into prospects, the adoption funnel where you turn prospects into customers that are using your product or service, and the retention funnel where you turn customers into loyal advocates. For a bit more read this previous post.

Touchpoints

The other visual reminder are touchpoints reminding us that we can affect the quality of the interactions that our customers have with us. Exceed the customer expectation at a touchpoint and you have the recipe for delight. Check out the previous issue of the What’s Next newsletter to learn more about the Delight-O-Meter model and see a couple of examples.

Week Numbers

Other items on the daily flight plan that can help you get about your business are the weekly calendar that goes 3 months at a time and the Guiding Principles. You don’t want your business to end up like the small craft pilot that landed with his gear up. So, download your flight plan, use it daily, and check it frequently. Use it to note the people you’ll reach out to whether they are customers or consultants.  You might not get any more time in the day but you’ll make the most of the time you have available and make a bigger impact along the way.

Book Project Update

image of one page overview - The Experience Design Blueprint by Gregory Olson
click image to open one page PDF book summary

The Experience Design BLUEPRINT is now available. The first section of the book is about making the invisible visible. You’ll learn about the experience honeycomb, experience hoop and halo, and how to model experiences, whether those are for customers, employees, voters, members, investors, patients, clients, etc. You will build a rich experience vocabulary that is relevant to your audience and to your organization’s health. You’ll learn from everyday consumer examples and then learn how to apply filters, lenses, and levers to improve experiences of any type.

In the second section of the book, you’ll learn to visualize your promise delivery system, better navigate change, and improve your skills in overcoming the barriers that plague innovations and customer experience improvement initiatives. Click here or the image to download the one page book summary along with author contact information. Please reach out if you’d like some help.

When Emails Become Overcooked Carrots

Dear Pushy Brand “Communicator,”

Pushing away a plate of unwanted carrotsIf I receive your email newsletters, updates, press release, etc. and I no longer want to receive your stuff, then please let me easily unsubscribe. Asking me to login to an unwanted “account” in order to change my communications preferences is tantamount to asking me to finish the meal, even though I’ve decided I don’t like the taste. Please recognize that I no longer want to eat.  Maybe I don’t like your food or I’m simply too full.  Whichever the case, please don’t fight me when I push away the plate. Better yet, be a good host and recognize when I’ve long stopped eating and simply offer to take away the plate for me.

Sincerely,

The many peeps that are full of your brand, but not as full as you are

Project Out of Control?

Have you ever felt as though a project had a life of its own, running like a freight train down the tracks.  Like watching a glass fall off the counter, sometimes we feel powerless in our projects, even the very ones that we initiate.  The feeling can be even worse if you are jumping aboard another person’s project.

Personalities and biases will definitely begin to come out when you are working on a project with other people. Some people are mindful of execution and stay very disciplined whereas others may abandon the current plan because new information leads to more promising possibilities. Sometimes projects are completed on time and on budget with their intended outcomes but at other times, they are not. The ride isn’t necessarily enjoyable. Remember that freight train image? When a project is really out of control it feels more like a FRIGHT train.

What is needed is a better conversation.  Sometimes you do have to slow down, in order to speed up.

Getting on The Same Page

We use the Big Picture in our practice to communicate our ideas, get on the same page and move forward together.  Using the Big Picture taps the visual thinking parts of your brain and allows you to have more productive conversations.  So when people are checked out, going down the wrong path, or the project feels out of control, slow down.  Grab the Big Picture, outline the plan using sticky notes to represent the big chunky steps and have a better, more inclusive conversation.   Those working with you will thank you for a more enjoyable ride and together you’re much more likely to reach your intended destination.

About The Author

Greg also authored The Experience Design Blueprint, a book about designing better experiences and then making them come true. The Big Picture is discussed further in:

  • Ch 12: The Three Psychological Zones
  • Ch 13: Taking Flight

Gregory Olson’s also authored, L’ impossi preneurs: A Hopeful Journey Through Tomorrow, a light-hearted and deadly serious book about a brighter future where we live more meaningful lives, governments invest in people and sustainable progress, and technology serves humans.

image of author Greg Olson and Gregory OlsonGregory Olson founded strategy and design firm Delightability, LLC. with the belief that if you delight customers then success will follow. He believes that we all have the potential to do better, as individuals, organizations, and communities, but sometimes we need a little help.  Gregory also serves as a volunteer board member for Oikocredit Northwest, a support association for social and impact investor, Oikocredit International.

Why Think Positive is so Last Year

Smiley face night light plugged into electrical outletIt turns out that the world has been swimming in positive psychology for a couple of decades. Amid that, we have many things to cite in the world that aren’t so swimmingly positive. And how many of us have fallen prey to the motivating seminar or sales pitch, only to fail later when we return to our old habits and practices. Being positive, having unabated enthusiasm, and putting blinders up to all things negative, doesn’t create the warm, fuzzy, prosperous future we once thought it would.

In the December issue of Psychology Today, Annie Murphy Paul, explores the uses and abuses of optimism (and pessimism). Like the author of the article suggests, as in many things, context matters. It turns out that there is a time to be optimistic and a time to be pessimistic. Sometimes it is helpful to think of things that might go wrong.

The most recognized trophy in the world, the Oscar statuetteWe find this especially interesting given our work with teams using the Big Idea Toolkit. It turns out people adopt two distinct psychological zones or mindsets, when using the toolkit. There is the PlayGround, rife with positive psychology. This is where we encourage people to think about the unbounded possibilities and untapped potential. Here we want unbridled enthusiasm and expansive thinking. One of the guiding principles for the PlayGround is “Ideas are not judged here.” While we do tout the PlayGround as the place where ideas live, those ideas won’t make it in the real world until somebody focuses and gets something done.

For that, you need execution and the place where execution lives, the PlayBook, another component of the Big Idea Toolkit (or your innovation culture). In the PlayBook, a healthy dose of pessimism is welcome. Here you need to be mindful of deadlines, deliverables, actions, and owners. It might be construed as negative, but guess what – that negative energy brings focus, just what you need to ensure your execution wheels stay on the tracks.

Positive and negative complimentary opposites - Yin YangThis isn’t a new idea; the ancient Chinese subscribed to a concept called Yin Yang, the belief that there exists two complementary forces in the universe. One is Yang which represents everything positive or masculine and the other is Yin which is characterized as negative or feminine. One is not better than the other. Instead they are both necessary and a balance of both is highly desirable. We live in a world that needs a balance of both positive and negative, because that is the real world.

Was it all Pollyanna thinking at Bank of America when executives there rolled out the plan to charge customers $5 a month for debit card transactions? Consumers roiled by this decision arrived on the doorsteps of credit unions in droves. On the backs of this, Verizon quickly followed with a decision to charge customers $2 per month to pay their Verizon bill online or over the phone. In all of their positive thinking, perhaps they thought they were granted immunity from similar customer backlash. A healthy dose of “What Could Really Go Wrong Here” is sometimes the best conversation.

Psychology magazine cover with article, Optimism - How to Tap it When to Wield It... Or Withhold It

If after you are reading this article and you are still thinking positively, think about how optimistic you would be if you encountered a Kodiak bear while on a hike? Or were faced with the challenge of launching a space shuttle or mega store or latest tablet computer or asked to change your pricing plan or add charges to your loyal customers. Remember, context matters.

If you might get eaten, accidentally kill others, lose investors money, go out of business, tarnish a longstanding company reputation or alienate your best customers, then you might want to employ a bit of healthy skepticism in your planning, execution, and most importantly in your conversations. Many organizations that are no longer around probably wish they had.

If you don’t switch up your mindset from time to time, matching optimism or pessimism to suit the context, then you might just NetFlix your customers and BlockBuster yourself out of business.

Like Annie stated in her article, if the father of positive psychology, Martin Seligman, is rethinking the role of optimism in our lives then perhaps you should too!

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about the author

image of author and consultant Gregory Olson

Gregory Olson is a consultant, speaker, and author of The Experience Design BLUEPRINT: Recipes for Creating Happier Customers and Healthier Organizations.

His latest book project is “L’ impossi preneurs: A Hopeful Journey Through Tomorrow.” It is a celebration of impossipreneurs of the past and an exploration of today’s “impossible” ideas. Stay tuned to learn more by subscribing to this blog or connecting with Greg on LinkedIn.Connect with Delightability on LinkedIn

Chapters in “The Experience Design Blueprint” that especially pertain to this article include:

  • Chapter 12: The Three Psychological Zones
  • Chapter 13: Taking Flight

See a book summary. Read the book reviews on Amazon. Read The Experience Design Blueprint on Kindle or any device using the free Kindle Reader application or read the full color print edition. Already read it? Please connect and let me know.

Imagine that your Employees Were Really Engaged

slice of delight o meter infographic for delighting customers
See Infographic for Full Story

According to the Deloitte Center for the Edge study in 2009, only 1 in 5 employees are passionate about their jobs.

Imagine the untapped potential that exists in the remaining 4/5 of your employee population. What if you could harness their potential and put it to good use, creating value for your customers and for your organization.

I’ll bet you could improve communications, innovative your Continue reading “Imagine that your Employees Were Really Engaged”

Delight-O-Meter: An Innovation in Measuring Customer Delight

Delight O Meter reveal from DelightabilitySo how do you know if you are delighting customers? Is there something more effective than the revenue yardstick or monitoring what people say on social networking? Customer satisfaction surveys don’t seem to work; people say they are satisfied and then leave anyway.

It turns out that most organizations don’t know if they are delighting customers. For those that do, they still lack a systematic framework to manage delight. Customer delight is not customer satisfaction plus Continue reading “Delight-O-Meter: An Innovation in Measuring Customer Delight”

the Unthinking Customer

What was I thinking t-shirtAs consumers we have many choices of what we do and how we spend our money. Given too many choices we get overwhelmed and tend to do nothing. Ninety-eight percent (98%) of the time, however, we rely on our subconscious to make decisions. Scientists tell us this is a good thing as our brains are not able to process the millions of information bits thrown at us daily. If we had to think about everything we do, our days would be filled with just getting through our breakfast menu.

rational thinking only represents 2% of decision making

As business people we know the importance of telling customers about the features and benefits of our products and services, so that any thinking person would be compelled to make a purchase. The trouble with this “rational thinking” approach is it only targets 2% of the decision making process and not the 98% of the buyer’s subconscious driven actions. This helps to explain why customer behavior is so often misunderstood and may explain, for example, why 75% of customers in surveys say they are satisfied right before they leave. Of course, measuring customer satisfaction can be helpful in spotting trends; the problem is using a customer satisfaction survey to understand customer thinking or justify getting a good night sleep is misguided.

You need the courage to run experiments

How many times have you thought, “we just need a better website”, or “better leads.” Don’t be surprised if one more communication or one more survey, doesn’t lead you to the Promised Land.  Knowing if customers are happy or what will make them purchase is more complex. You need the courage to run experiments and observe firsthand what works and what doesn’t. Beware of gator brains reactions from those that think they already know the answers. Don’t let unproductive thinking get in your way. See related post –Innovation Squelchers: Pattern Thinking, Biases, and Gator Brains

In the next issue of the What’s Next newsletter we’ll share a free and simple exercise that enables you to detect pattern thinking in yourself as well as others.

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Are Communications Helping Your Relationships?

Illustration of robotic like simple people in all colorsTimely and relevant communications is essential for businesses to reach their target audience.  Anything less is noise that will largely go unnoticed or worse irritate the intended audience. Sadly, many organizations fall into the trap of poorly segmenting communications. Sales and even some marketing personnel fail to differentiate between suspects, prospects, and customers. When this happens, loyal customers are often overlooked. Think how a loyal customer feels about your brand when prospects receive better offers than they do. This results in customer churn, diminished sales, and poor loyalty.

To solve this problem companies should segment customer communications into 3 stages.

  1. The first stage is Exposure. Here you expose suspects to your products and services and turn them into a prospect.
  2. Next is the Adoption stage. Getting your prospect through the sales process and consuming your product or service is the goal.
  3. The last stage is Retention. This last one is most often overlooked as sales driven personnel and processes are “on to the next” big sale or initiative.

3 Funnels Mental Model from Delightability Shows Suspects and Prospects and Customers and Advocates

 

Bain and Company research established that it is 10x more costly to acquire a new customer than retain an existing one. So naturally, you wish to retain customers and turn them into advocates.

Benefit of creating advocates include:

  • pay more, especially for premium treatment
  • buy more and often without ongoing sales efforts
  • provide useful input on products and services
  • insulate you from the effectiveness of competitor’s price promotions
  • reduce the cost of your exposure funnel related marketing activities

Properly enabled, advocates also influence like minded individuals and expose them to your brand. Because of this, it is important to continue to build the relationship. This is especially relevant in an era where buyers turn to social networks and online information sources for opinions and counsel before completing a purchase decision.

Here is how to improve customer communications

  1. Conduct a communications audit and establish your baseline
  2. Ensure everyone is clear on the definition of customer terms i.e. suspect, prospect, customer, and client
  3. Actively segment communications based on the 3 stages of relationship
  4. Watch response rates and loyalty improve