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Anthropology and the Abduction of Strategy UPA London, March 15th 2012 Simon Roberts ReD Associates

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Anthropology and the Abduction of Strategy15th March 2012

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Page 1: Simon Roberts' UKUPA Ethnography Presentation

Anthropology and the Abduction of Strategy

UPA London, March 15th 2012 Simon Roberts ReD Associates

Page 2: Simon Roberts' UKUPA Ethnography Presentation

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www.redassociates.com �@ReD_Associates @ideasbazaar�[email protected]

Thank you for inviting me…

Page 3: Simon Roberts' UKUPA Ethnography Presentation

My journey to date

1996 2012

Page 4: Simon Roberts' UKUPA Ethnography Presentation

Applied

Commercial

Corporate

Business

Design

What’s in an anthropologist’s name?

Page 5: Simon Roberts' UKUPA Ethnography Presentation

Back story: anthropology in business

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The repeated discovery of anthropology in business

“Five years later, in 1996, the Fast Company article titled ‘Anthropologists Go Native in the Corporate Village’ reports (again) the enthusiasm of increasing numbers of major corporations for consultants with anthropological credentials. And as we’ve seen a decade later, in 2006, the commercial market for anthropology is still news”.

Anthropology as ‘Brand’: Reflections on corporate anthropology, Lucy Suchman

Page 7: Simon Roberts' UKUPA Ethnography Presentation

''If you want to understand how a tiger hunts, �don't go to the zoo. Go to the jungle.'' �

A.G. Lafley, former P&G CEO �

In the recent past the focus was on the method…

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…and methodological ‘innovation’ flourished

The pure and the impure? Reflections on applying anthropology and doing ethnography, Simon Roberts In Sarah Pink (Ed) Applications of Anthropology: Professional Anthropology in the Twenty-first Century (Bergahn)

Page 9: Simon Roberts' UKUPA Ethnography Presentation

Laying bare the cultural erotics of consumers (Sherry)�

Puzzling things out in situations of complexity (Cefkin)�

An opposable thumb�

An externalised mis en scene (Darrouzet et al)�

A messy engaged romp with uncertain outcomes (Blomberg)�

A cultural project

Increasingly confident claims are made about the power of these approaches

Page 10: Simon Roberts' UKUPA Ethnography Presentation

Anthropology/ethnography has staked a claim to a home within business, and beyond

Created an audience Formed a community Put up boundaries Split into clans and tribes

…and started to move, slowly but surely, from the small details to the big picture

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But what it is and what it’s for is still open to interpretation. (And that’s no bad thing).

-----Original Message----- From: XXXX.com [mailto:XXXX.com] Sent: 27 October 2004 17:02 To: Simon Roberts Subject: Now I understand....

Si

I see a lot of company managements in my line of work, but I have just now met the first one who have talked about taking an ethnographic approach to their market research. Very exciting stuff. It was egg, specifically the chief executive Paul Gratton. He explained it as getting punters to do some drawings with crayons!

Can I sense your influence in this?

Eric

Page 12: Simon Roberts' UKUPA Ethnography Presentation

Anthropology’s abduction of strategy

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At ReD we identify gaps between what people want and what companies give them. We translate those insights into solutions that will thrive in the marketplace.

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KEY INDUSTRY SECTORS Consumer Electronics

Telecom and IT Health and Medical Devices Consumer products

Public Sector and NGO

55 consultants in two offices. Copenhagen & New York

PRACTICES Product and Service Development Commercial Growth Complexity Reduction

Organizational Performance

DISCIPLINES Ethnography and Anthropology Business and Economics Sociology and Organization Political Science Architecture and Design

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03.

Complexity Reduction

•  Identification of over met needs / wasted activity

•  Portfolio simplification •  Segmentation simplification

04. �Organizational Performance

•  Innovation training •  Solutions for cultural issues •  Innovation intent •  Innovation audits and metrics

UNDERSTANDING PEOPLE

Social situations, personal motivations, interpersonal dynamics…real world data

IDENTIFYING INSIGHTS

Insights from field research, expert interviews and secondary research

02.

Commercial Growth

•  Sales channel management •  Sales force effectiveness

•  Marketing spend •  Customer profiling and targeting

01.

Product/Service Development

•  New product definition •  Brand and messaging •  Product road mapping •  Future visions

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We are a strategy consultancy focused on top line growth

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While every ReD project follows a similar and proven process, the approach can differ based on the starting point

DEVELOPMENT AGENDA

Strategic problem-solving RESEARCH AGENDA

Open-ended Discovery

Opening New Doors Solving the Problem

For example: •  What emergent interaction paradigms should we be

taking seriously? •  What impact are social networking technologies having

on the way we think about friends?

For example: •  How can we accelerate the technology refresh cycle

in small and medium size businesses? •  How can we extend our franchise with small

businesses?

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Open-ended Discovery is about opening up completely new terrain– whether a new market, a new technology or a new business domain.

Display advertising technology: is this the right example here?

The future of sound

EXPLORING A NEW MARKET SEEKING VALUE IN NEW TECH VENTURING INTO NEW BUSINESSES

What it is good for: - Exploring new usage situations - Developing a new vocabulary around a subject -  Inspiring new thinking through speculative ideas

What are the limitations: - Doesn’t deliver a definitive strategic direction - Without strategic objectives there can be a lack of a solid case - Opportunities are inspirational, not necessarily impactful

Defining Prospects for 1st Time Computing Devices in Emerging

Markets

Identify growth areas for Y Corp, the leading hearing aid manufacturer

How do you pick up on the technology adoption in K-12 edu?

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Open-discovery projects give executives a consolidated point of view around uncharted territory to help reach consensus and have a perspective on first steps.

Content -  Deep customer understanding around unknown territory -  What to focus on, relevant issues to consider -  A differentiated point of view tailored to a newcomer

Audience -  Executives looking for a consolidated viewpoint and approach

Impact -  A fresh perspective that can facilitate consensus among the team -  Inspired action (“we can do this”) -  Clues on meaningful first steps

Open-discovery to open up fresh new thinking

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Strategic Problem-Solving involves finding a fresh customer-centric perspective to business issues that lie at the heart of the core business.

Getinge -

What it is good for: - Helps clients take key decisions - Gives an ambitious yet realistic vision of what can be done - Can unite multiple divisions under a common value goal

What are the limitations: - Concepts often aren’t radical, but they are right - Customer insights aren’t exhaustive, they focus on the problem

at hand

Identifying adjacent opportunities for a digitally-disrupted postal services

business

ADDRESSING UNMET NEEDS NEW PROPOSITION DEVELOPMENT IDENTIFY MARKET ADJACENCIES

Create a new innovation road map and value proposition

Create a SME centric cloud computing proposition for US telco

Identify opportunities for a digitally-disrupted postal services business

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Strategic concerns are increasingly about how to differentiate within a market, and how to climb up the value chain as a business

Content -  A differentiated perspective within well-known territory -  Rethinking the ‘basics’, things that businesses can control -  A strong sensitivity to client needs based on their competencies

Audience -  An implementation group looking for fuel to innovate

Impact -  Value propositions that are tactical with clear industry positioning -  Concepts that are ambitious and realistic enough to take on -  A formulated and rationalized approach that gives confidence to a

team’s next steps

Strategic Problem-solving to address competitive issues

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"Business schools tend to focus on inductive thinking [based on directly observable facts] and deductive thinking [logic and analysis, typically based on past evidence]…�

…design schools emphasize abductive thinking - imagining what could be possible. This new thinking approach helps us challenge assumed constraints and add to ideas, versus discouraging them.” �

A.G. Lafley, former P&G CEO

Lafley’s tiger meets two philosophers in the jungle

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Our approach requires questioning traditional management science & applying social science

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Mystery Conflicting data pointing in all directions - No hypothesis

Abductive reasoning

LEVEL 4 Not even a range of possible future outcomes

LEVEL 3 Range of possible future outcomes

LEVEL 1 Single view of the future

LEVEL 2 Limited set of possible future outcomes, one of which will occur

A

B C

Social Science

Management Science

Algorithm Strong understanding of situation and future - Reliability in testing Deductive reasoning

Heuristic Some connecting dots

Weak hypothesis - Heuristic Inductive reasoning

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Relevance

Depth Value

Business Practice

Social Science

Client’s Existing Situation

Challenges to Existing

Assumptions

PHASE 1 - Frame Defining the problem

PHASE 2 - Research Uncovering insights from the real world

Platforms for Growth

PHASE 4 Synthesize

Prioritizing�impact

A Fresh New Perspective

PHASE 3 Organize Analyzing data

and finding patterns

New Discoveries And Insights

Change in Client Practice

Roadmap of Solutions &�Initiatives

PHASE 5 – Recommend Proposing a course �

of action

PHASE 6 - Realize Articulating impact and

its consequences

And starting, and finishing, in the world of business

Page 23: Simon Roberts' UKUPA Ethnography Presentation

The promise of anthropology

“A strategy is a coherent set of analyses, concepts, policies, arguments and action that respond to a high stakes challenge” Richard Rumelt, Good Strategy, Bad Strategy (Crown Business)

A highly specific, understanding of what is going on

A focus on identifying opportunities

Landing those back inside the business

Page 24: Simon Roberts' UKUPA Ethnography Presentation

Thank you. Please stay in touch.

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www.redassociates.com �@ReD_Associates @ideasbazaar�[email protected]