In my previous post, I talked about the status of Big Data.  In this post, I’d like to discuss some of the ethical issues we’re facing in the data world.

We are at an interesting crossroads between data and culture.  Today, we have the ability to collect and analyze large amounts of data (much of it from social media) but our increased use of data is changing how we view concepts such as privacy and confidentiality.  In light of the NSA Surveillance debate and a recent thought experiment from Facebook, people are beginning to question the boundaries between acceptable and not acceptable use of personal data.

This is more of a question of ethics than anything else, but it will likely become an integral aspect of how companies engage consumers and define their brand and image. In this new environment, some of the challenges businesses and consumers face include:

1. The nature of private vs. public information: What does privacy actually consist of when we are all connected through social networks?
2. The confidentiality vs. profitability of information: Is data kept “in-house” or is it sold for use by other businesses?
3. The use of analytics to serve the customer vs. “manipulate” the customer: Are analytics used to better understand customer preferences or to subtly sway the customer and restrict their choices?

It doesn’t take long to realize that there is a fine line that separates these areas.  In many cases, the distinction is blurred and hashing out the details will require a broader social conversation that weighs the costs (in terms of privacy) with the benefits (in terms of improved customer service) of our growing reliance on analytics.  On the one hand, there is uncertainty surrounding how our data and information is used, while on the other hand, we gain the ability to more precisely fulfill consumer needs and even improve more fundamental factors such as the safety and reliability of the products we purchase.

These are key questions organizations need to ask, especially with regard to how they define their mission to customers.  They also have implications for how an organization is perceived publicly and the type of culture they embrace internally (see Chris Cancialosi’s article on establishing a Leadership Brand).  When launching a new data-driven initiative (whether Big Data or conventional), there are several questions to consider:

1. Could it cause significant distress to a customer by revealing potentially embarrassing or unwanted information?
2. Are you trying to understand a customer or strongly steer their behavior?  Does it sound eerily similar to something out of 1984 or Brave New World?
3. How secure is the data from potential hackers?  What are the associated risks?
4. What is the problem this initiative will solve?  What is the method to acquire the data, and how is it better than other options?

These are complicated questions that won’t be answered any time soon and there are a number of different perspectives on what needs to happen (see here, here, and here for some examples).  At the end of the day, the key question is one of tolerance: how much “privacy” are consumers willing to give up for the benefits data provides (see my post for an example of this trade-off)?  This will be different for each person, so it is important for consumers and organizations to become educated in understanding how data is used, weigh the costs and the benefits, and make informed choices.

Given what I’m about to write, this blog should be a hero story about a frustrated exec who uses storytelling to transform disinterested employees into faithful followers….

Maybe next time.

For now, what I will say is that THE common thread we’re hearing across clients and industries is an interest in learning to tell stories. The secret is out. Something that we’ve known intrinsically from the power of children’s stories and our ability to pass stories over generations is getting the enthusiastic attention of psychology and neuroscience researchers.

The gist of what brain science is telling us is that stories are the most powerful way to change attitudes, motivate, influence, connect with and inspire people.  And this is what has leaders listening.

• But what is it about stories and business?
• Why did 3M ban bullet points in favor of strategic narrative?
• Why are top business schools incorporating story into their curriculum?
• Why does story have the unique power to persuade and motivate?

To put it simply, it’s how we’re wired. When we’re presented with a list of bullet points, our brain activates its language processing capacity- where words take on meaning. And that’s great. But when we hear a story, we relate it to our existing experiences. The frontal cortex, responsible for experiencing emotions, is activated as if we were actually IN the story- tasting the waffles, feeling the panic of an unprepared presentation.  Likely for this reason, studies show that people accept ideas more readily when their minds are in story vs. analytical mode. Uri Hasson at Princeton and Paul Zak at Berkeley’s Greater Good Science Center are both doing exciting work in the space.

So what does this mean for leaders? Stories motivate and inspire staff because they “bring brains together” in a way, something narratologists refer to as transportation. The brains of storyteller and listener(s) synchronize in the moment a story is being told. I’m reminded of how getStoried storytelling guru and gothamCulture friend, Michael Margolis, describes the “invisible lines of connection” that stories create between people.

Think of a leader who is trying to help her organization be more risk tolerant. The most effective way to motivate risk-taking behavior is through story – a time she took a risk, the fears she had, how she created something new, and the reward she reaped. This is the difference between getting people to do what you want and getting people to want what you want.

Not to mention that culture IS the stories that we tell. Stories and culture are inextricably linked. To initiate culture change, leaders need to change the stories they tell – and this refers no less to the stories we tell in passing in the hall as it does company-wide briefs.  As deeply embedded as stories are in our history, it’s no surprise leaders are anxious to harness the power of story for positive organizational change. And we at gothamCulture are excited to be involved.

Focus Groups are a key component of an OD consultant’s world. The term might conjure up images of marketing research studies with tables of lively customers discussing a new soda flavor. In our world, where we use them to gather qualitative insights into organizations, they tend to look a little different. Whether I’m assessing an organization’s culture or examining a particular issue, I consistently find that:

1. People need a designated space and time to talk (though they may not have realized it);
2. No matter the problem, it’s someone else’s fault (though that person just happens to not be in the room); and
3. People. Are. Frustrated.

I’ve worked with organizations where things were going well, the campers were happy and the future looked bright, and people were STILL frustrated.  There’s something about a conference room with a closed door and guarantee of confidentiality that opens the flood gates of workplace melancholy.

But I’m not complaining.  A client recently reminded me of something I learned in graduate school: negativity isn’t a bad thing for an organization, but apathy is.  As leaders you’d rather have a workforce that is ferociously pissed off over one that couldn’t care less. Negativity shows interest, energy and ultimately investment in making the organization great.

The trick, however, is pivoting that negative energy into positive change. A few thoughts from an OD perspective:

• Avoid getting defensive by focusing on deep listening. Common reactions to staff feedback range from “That can’t possibly be about us!” to “Who said that?!” to just general hurt feelings. These reactions are very understandable but not constructive.  Part of being a good leader is really (like, really) listening to feedback without trying to find ways to prove the data wrong.  Remember there’s something broken in the system…not necessarily with you as a leader.
• Follow through. There is no missed opportunity greater than not making change in the face of feedback from your people. You owe it to them to, at the very least, demonstrate that you heard them. Negativity can convert to apathy fast if people feel their efforts make things better by raising their voices were wasted. Maybe it’s not your style to indulge “complaints”. That’s fine, but your business will suffer for it.
• Involvement. Be open to building the solution to stated problems together as a team.  Make sure the right people are at the table.

I think I’m a pretty nice person but wowza I’ve been yelled at, dumped on and complained to in focus groups. And this is what we do as consultants, and strangely we like it – in fact, we love it and all the challenges it presents.

Ever wonder why grocery stores push customers to use rewards cards?  I became fascinated with this question recently when I received a booklet of coupons in the mail from my local grocery store.  The coupons were tailored to my purchasing habits and even offered decent savings on items that I purchased only once or twice.  Seemed pretty amazing to me, but I wondered how and why they did it.

After doing some research, I realized that rewards cards serve two purposes (1) to drive customer loyalty by offering discounts and (2) to build customer profiles for the store and region.  It’s the second purpose that is the most intriguing.  Essentially grocery stores use purchase information to understand the preferences of their customers; this helps them estimate demand and ensure key products are stocked at each store.  In a way, they can use the data to custom tailor their services to unique demographic groups.

Grocery stores offer an exchange, in return for using your purchase information, they provide in-store discounts and personalized coupons.  Overall, it seems like a pretty fair trade and an excellent way for businesses to understand their customers.  While most grocery stores are part of national chains (which can afford large business intelligence departments), are there similar ways for small businesses (who often have constrained resources) to capture and analyze this information?

Here are four simple ways small businesses can use data to understand (and better serve) their customers.

1. Leverage Web Analytics.  Website traffic is a great way to understand where viewers come from, how they found the website, and what content they are viewing.  This can help identify if there are key areas of interest (possibly a great article or blog post) and how to optimize content for your audience.
2. Reach Out with Social Media.  Pretty much everyone has a social media strategy, but how much analysis is actually going on.  There are a number of platforms to look at trends, popular posts, “likes”, and “shares”.  While these are simple measures, they allow businesses to see what content is most popular.  Businesses can take this a step further with text and network mining to analyze the content, sentiment, influencers, and relationships between the viewers.
3. Dig Deep into Current Clientele.  Examining sales for current clients is the best way to understand demographic trends, product preference, and customer “loyalty.”  For a small business like gothamCulture, this can be easy as looking at where clients come from, what market sector they are apart of, and what type of services they purchase.  By identifying links and connections, businesses can target marketing and project trends.
4. Understand the Competition.  Understanding where the competition’s customers come from and how it uses social media can be a mirror to allow small businesses to differentiate their products and target new customer groups.

By leveraging current sales, potential sales (website traffic, social media, and the competition), and identifying trends and similarities between the two, small businesses can start piecing together profiles for different customer populations, the products and services they may be interested in, and anticipate future market trends.