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How the Digital Transformation of Sales Could Go Too Far

There are real and costly risks to an overly digitized sales process.

There have been hidden human costs in our drive towards efficiency and productivity using technology. As we approach the post-pandemic period, when businesses will decide which practices to continue and which to wind down, I foresee a rush to digitally transform B2B sales too quickly as harmful to human connections that build trust and long-lasting relationships.

The Cost of Efficiency

When I managed social media at a big bank in the early days of this technology disruption, I needed to understand and exploit its value for financial services. While looking back at the history of technology disruptions in banking, I found a pattern of automation in which to gain efficiencies the industry slowly chipped away at personal connections with their customers. Starting with telebanking, we at least had someone to talk to from home without driving to a branch, automation grew less personal.  ATMs gave customers quick access to basic banking functions, such as making a deposit or cash withdrawal. This culminated in smartphone apps, where many banking functions were accessible from the phone in our pocket.  Each step separated customers further from banks, slowly eroding personal relationships.  Luckily, as a “people-powered” digital platform, social media could address the trust gap.

It’s incredible how wide the gap between customers and businesses has grown.  Here’s an example, as told in Wells Fargo’s blog. After the 1906 San Francisco Great Earthquake and Fire, most of Wells Fargo’s ledgers were in a vault that survived the quake and fires but couldn’t be opened for weeks without exploding. To help the devastated city recover, the bank’s tellers relied on memory and personal relationships to get their customers the cash they needed to survive, let alone start to rebuild. These tellers knew their customers well and were able to disperse money based on their recollections of customer balances and creditworthiness. After recording these transactions in school children’s composition books, they found that these transactions were squared within a few dollars after the bank ledgers were finally retrieved weeks later.

When the financial crisis hit in 2008, many banks that were already established in social media had built trust and better weathered the brand damage that other institutions suffered throughout the industry. They’d built social capital with their customers, which was much needed in the aftermath of the crisis.  While financial services have modernized and scaled through efficiencies that have harmed human connection, the financial services blogs rebuilt trust through stories employees told of how they’d helped their customers succeed and reduced the fear that was palpable then by recounting how the bank had helped their customers survive previous economic catastrophes, thus swinging the pendulum back a bit towards trusted relationships.

As we rush towards the digital transformation of sales, let’s not let the pendulum swing too far. Consider the shift post-pandemic in manufacturing from “just in time” to “just in case” supply chains and our collective desire to emerge from isolation with live events and shopping. We’re wired and ready to connect.

The Right Use of Sales Technology

Sales and customer success teams maintain relationships that can only be built and preserved by people over time. This is particularly true when buying expensive enterprise business products or services.

While conducting research for this year’s upcoming digital selling report, I’ve found a number of approaches that dial back automation in favor of genuine relationship-building.

For example, video meetings exploded during the pandemic as a way to continue face time with customers and prospects while in shut-down.  As more sales reps used video calls, we then saw growth in personalized videos sent via email.  As a consumer, this change was palpable and impactful.  Getting less, “Hi Ed, I thought you might like…” in an annoying automated email, I instead started receiving videos clearly meant for me. In one case, I received a personalized insurance briefing based on a request I’d made, which used my own and my husband’s name, presenting insurance plans that might be best for us and ending with a simple call to action (which I took, I’m now a customer of this broker).

Personalized video messages are a great example of how tech can be used not only to scale but also to build trust in essential long-term relationships.

Maintaining Relationships Post-Pandemic

Sales and customer success team managers know which of their team members have relationships that have grown the bottom line.  These reps need to be supported by digital, but not necessarily by building deep digital skills. A salesperson is much better at reading a customer’s body language, gestures, and so on than any AI I know of.  A data analyst is better at connecting data points to draw valuable insights than most sales reps. We need both of these skills, and that won’t change with the digital transformation of sales in front of us.

“Personalized video messages are a great example of how tech can be used not only to scale but also to build trust in essential long-term relationships.”

To scale and meet the demands of digitally savvy customers, many brands I’ve spoken to have told me that their return on investment in customer experience is diminishing—perhaps a sign that consumers are on to overly automated engagement.  In response, they’re investing in more personable tactics.


FINAL THOUGHTS

B2B businesses I’ve interviewed have built a virtuous circle by leveraging their customers’ digital reach to advocate for them once a trusted relationship is established.  One company I spoke to told me how during shut down, when most communication went digital, they discovered that they didn’t have the permissions needed to reach out on some digital platforms, like email. So, they built customer advisory boards to listen to feedback and build better products, which in turn were amplified by those customers in digital, such as sharing company content with colleagues. Valuable human connections with customers can build a businesses’ reach in digital.

The best digital transformation of selling strategy is one that invests in the digital domain but focuses on bettering the human domain. Tricky, but as the pandemic has demonstrated a realistic and achievable goal.

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Prophet Looks Back on a Month of Pride Celebrations

Taking a broader view at what it means to be gay at work, promoting authenticity all 12 months of the year.

During the past month, there was no shortage of memes and think pieces discussing the temporary nature of the celebration of pride, especially for corporate entities. When July 1 hit, the rainbows came down and most were none the wiser. Like all celebratory months or days that acknowledge otherwise underrepresented groups, there’s always a question about why we only do this for a part of the year. Why not celebrate year-round? We’re gay or lesbian or bi or transgender or an ally 365 days a year. The tokenization of minorities of all kinds has come to be an unfortunate hallmark of today’s corporate culture even as businesses invest in diversity, equity and inclusion initiatives and education.

Pride at Prophet has been in existence for a few years. Prior to the formation of any ERGs (employee resource groups) at Prophet, there was a general shared sense of wellbeing for LGBTQIA+ employees because of the composition of our leadership team, the firm’s clear investment in pro-bono work for relevant causes and the visible sense of recognition that comes with seeing others like you. As the firm grew, a clear need to better acknowledge different, diverse cohorts within the organization became clear, and over the last three years several different affinity groups have naturally— and intentionally —formed to make an impact at Prophet.

“A clear need to better acknowledge different, diverse cohorts within the organization became clear, and over the last three years several different affinity groups have naturally— and intentionally —formed to make an impact at Prophet.”

We’ve celebrated pride as an organization in different ways for many years, but given remote work life, Prophet decided to take a broader approach to Pride Month celebrations this year. With local office teams unable to come together physically, we curated a program of blog posts, panel discussions, virtual events and playlists that put a spotlight on a community that is as diverse as it is unique. But what the program mainly did was show that every part of our business, every region, every role, includes members of the “community.”  More than 10% of our firm’s employees directly contributed to this month’s content, highlighting the broad depth of experiences embedded within our company and presenting opportunities for allies to engage, learn, support and uplift LGBTQIA+ community members in various forums.

Panel Discussion: ‘Queer in Consulting’

One of the most impactful events was a panel discussion that featured firm leaders and hit on topics including what it’s like to be “queer” in consulting. It featured U.S. and European managers and partners and spanned across our corporate, strategy, design, digital and delivery teams. The conversation reflected on the unique but shared experiences of panelists while highlighting the diversity of their experiences. Overall, the sentiment conveyed by our panelists was the idea of being extremely lucky — lucky for having professionally grown up in industries in which it wasn’t necessarily hard or at least a not big deal to be gay, and lucky for having found a workplace that always encourages its employees to bring their full, true and complete selves to their job.

Many of our attendees found it eye-opening to hear panelists discuss experiences like having to come out again and again to new teams and clients. One of our panelists spoke about being “in and out” as he transitioned through different companies and roles until he got to the point in his professional and personal development where code-switching was no longer an option. From day one of joining Prophet, he belonged in a culture where he felt truly embraced, if not celebrated. Another panelist talked about the “boys club” environment of the ad world that had surrounded him for most of his career. This made him prioritize finding a workplace that fostered a more diverse environment and eventually led him to become a Propheteer.

A third panelist recalled a statement he had to make during his interview process. In the interview, the panelist explained that he wouldn’t be successful if the firm expected him to change who he fundamentally is and how he expresses himself. For many of us, it’s taken a lifetime to build up the strength and confidence to be our best selves at work. Uncomfortable questions are asked by clients, colleagues make assumptions, we sometimes find ourselves in situations where we feel we don’t belong.  Creating a comfortable environment for everyone no matter how they identify is something we are committed to as a firm.


FINAL THOUGHTS

Our programming this year was focused on raising the profile of the impact and broad-ranging reality of the “gay” experience in the workplace and beyond to help celebrate the fact that the diversity of our perspectives makes our business and community stronger.

INFOGRAPHIC

Four Traits of Top-Performing B2B Digital Sellers

Understand the mindset and strategies of the most successful brands. Hint: Teamwork makes all the difference.

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Five Winnovation Factors to Drive Innovation Excellence in Asia

Look for new ideas that are high concept, more familiar than strange, and end-to-end human.

As we step off the Coronacoaster and onto (what we hope is) a new Roaring 2020s joyride, it’s critical that businesses innovate in ways that leverage how echoes of the pandemic will remain endemic in the future.

As always, the winners have been the most innovative in responding to changing market dynamics and consumer needs – putting momentum behind ideas that create the most sales energy, scaling production when the time is right, demonstrating cultural resilience in sometimes plummeting conditions and showing agility through the loop-de-loops of competition.

Innovation Changes Our Lives

The history of humankind is the history of innovation. Where would we be without fire? Or the light bulb, now the universal icon of innovation? Or the internet? We don’t want to reinvent the wheel, but it would be nice to spin out the next Uber. Or perhaps, an upgrade from the past – like switching from paper money to credit cards to QR code payments.

Innovation is Hard

There are oodles of stats on the subject, and the numbers aren’t pretty – about 90% of innovations fail soon after launch. But when you take a closer look, it seems many of these failures suffer from self-inflicted wounds. Far too often, failed innovations are simply failing to answer enough basic questions: What is it? Who is it for? When is it for? Where is it for? How is it different? Why should I buy it?

Technology Moves Fast, Human Needs Change Slowly

As we think about better ways to innovate, we need to be careful to avoid the speed trap between the evolution of human needs and a revolution of solutions.

Innovators need to be out in front of the public, or else they aren’t innovating. But innovators also need to create an intelligible bridging story if the innovations they’re pimping are way out there.

Be Mindful of How Cultural Context Comes into Play

Across cultures, whether or not innovative ideas translate is also being put to the test. In Asia, for instance, we have seen countless big ideas that have been massively successful in the west, such as Amazon, Uber or Groupon, fail miserably, getting replaced and outpaced by local competitors after struggling to adapt to the local culture and consumers. In contrast, Starbucks, Walmart, and Airbnb have reimagined themselves vigorously and relentlessly.

“Winnovation factors work even better when accompanied by the other innovation frameworks, exercises and approaches we have up our (rolled up) sleeves.”

The 5 Winnovation Factors

Prophet works with enlightened innovators of all shapes and sizes across a spectrum of categories and markets. We’ve distilled what we’ve learned from our work (and what we’ve observed to work in the marketplace) into five winnovation factors.

The fab five should NOT be thought of as a super-strict checklist, but instead, be thought of as guidance towards creating winning innovations. They work individually and collectively to raise an organization’s innovation game to a higher probability of success. They do it all from informing answers to basic buyer questions to inspiring disruptive ideas that surf pop-culture tsunamis.

  •  High Concept
  •  New Platform Development
  •  Multiple Needgasms
  •  80:20 Familiar:Strange
  •  Human End-to-End

High Concept

Innovation should be rooted in an intuitive High Concept that helps people understand what innovation is all about…in an engaging way. High Concepts are often expressed through name and/or design elements.

Facebook (2004) turned the page to a new chapter of social media, with its concept of becoming a “Book of Your Life.” WeChat (2011), prior to reaching super-app status, first gained traction as a messaging platform connecting people. Its Chinese name, 微信, also reflects its concept clearly – “micro message.”

The High Concept definition says it all: A simple and often striking idea or premise, as of a story or film, that lends itself to easy promotion and marketing. What could be better than striking ideas and easy marketing? High-concept thinking is a powerful concept for innovation.

New Platform Development

Changing the NPD game from new product development to new platform development means treating innovation as a living system that spans (and spawns) multiple products and/or services.

Oreo (1912) kept its cookie dynasty from crumbling over the years by flexing a dynamic platform system that innovates with a defined set of variables – ranging from the dimensions of the outer sandwich to the amount and flavor of the cream filling. Pop Mart (2010) thought inside the box to turn a simple toy into endless opportunities for surprise, by selling its trademark dolls in “blind boxes” and collaborating with artists and brands to constantly create new collectibles.

Whenever you innovate something new to the world, treat it as a platform that can be leveraged in a variety of ways for future growth from the get-go.

Multiple Needgasms

Many contemporary innovations are one-upping their unique selling proposition ancestors. Increasingly, new innovations are purpose-built to (over) deliver against multiple needs to elicit mind-blowing experiences from the jump.

Beverage company Genki Forest (元气森林) (2016) quenches Chinese consumers’ thirst for healthy drinks that still taste delicious. Their sparkling water boasts 0 sugar, 0 fat, and 0 calories, comes in a wide range of flavors and is topped off with sleekly designed packaging.

‘Multi’ is the new ‘uni’…‘and’ is the new ‘or’.

80:20 Familiar:Strange

Most consumers want a twist on the known in their innovations. If something is too familiar, there isn’t much reason to buy it. If something is too strange, mass consumers will reject it as something only good for freaks.

Take the salted egg yolk, a traditional staple across many Asian cuisines. In recent years, the flavor has hatched a number of new products that consumers are crazy about, from IRVINS Salted Egg Potato Chips (2015) to McDonald’s Salted Egg Yolk Loaded Fries (2019).

The innovation advice on the 80:20 factor should feel strangely familiar. If an innovation is highly familiar, add some strangeness. If an innovation is strange, make it feel more familiar.

Human End-to-End

Innovations are no longer thought about simply as isolated goods. Instead, they’re increasingly thought of as end-to-end systems in time and space. The best of these systems recognizes the human front and center in the ‘end to end.’

Apple (1976) pips most lifestyle tech companies to the post with a well-designed alpha and omega innovation experience play. There’s an appealing unboxing ritual when you buy a new product, and the company will often take your old product off your hands (literally) and apply its value against the price of this year’s model. One of China’s leading electric car manufacturers, NIO (2015), powers its community through its NIO Life sub-brand. The online platform enables car owners to chat with one another, sign up for exclusive events, and use NIO credits to buy everything from suitcases to cereal, shifting the car ownership experience to one that is all-encompassing and owner-centric.

When it comes to the end-to-end in your innovation…just do it.


FINAL THOUGHTS

The More Winnovation Factors, The Better Likelihood of Success

There you have it, now you know the winnovation factors. So, it’s time to start using them. Remember, they aren’t Pokemon (1998) – you haven’t ‘gotta catch ‘em all.’ But in general, the more winnovation factors you have in innovation the more likely it is to be successful.

Prophet applies winnovation factors across a wide range of categories, including products, services and new business models. They’re proven to make a difference in incremental product improvements and breakthrough category disruptions. They make a difference in innovation that lives in the physical world and innovation that lives in the digital world…and in innovation that lives in the hybrid phygital world.

The winnovation factors work. And the winnovation factors work even better when accompanied by the other innovation frameworks, exercises and approaches we have up our (rolled up) sleeves.

Want to learn more about how to increase your organization’s innovation capacity? Click to download ‘Innovation in a Post Pandemic World: The Critical Traits of a Truly Enlightened Company’

If you’re looking for an innovation partner to raise your game, we’d love to talk. Get in touch today!

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Winnovation Factors: Five Criteria for Innovation Excellence

Working with intensely nimble companies, we’ve distilled five essential factors for innovation.

Transform from innovation laggard to innovation leader

The pandemic disrupted business operations in ways leaders could not have possibly imagined. Forward-looking companies used this as a catalyst for innovation, to digitize services, fast-track disruptive products, or access new markets – but there were many who fell short. The appetite for innovation is far from slowing and the urgency for businesses to continue to flex their innovation muscle has never been greater. To avoid the risk of slipping behind, ill-prepared for the next crisis, companies need to be putting innovation front and center now to ensure they seize the seeds of opportunity and prosper in a post-pandemic world.

Prophet works with high-performing, innovation-driven companies of all shapes and sizes across a spectrum of categories and markets. There’s a lot other companies can learn from their approaches and attributes. We’ve distilled what we’ve discovered from our work into a set of five essential factors that are present, either in part or in full, at those nimble companies reaping the benefits of innovation-driven success.

Want to unleash innovation-driven growth and build resilience for your business? Read the five criteria for innovation excellence here.

Prophet’s Experience & Innovation practice can help you to underpin a superior approach to innovation to help you realize your ambitions, get in touch

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Improve Your Digital Content Strategy: 3 Learnings for European Companies

Our new research shows firms benefit from tech that automates, personalizes and localizes content strategy.

Companies are well aware that quality content — engaging, personalized and distributed at scale — is an essential part of modern marketing. Whether it’s using light-hearted memes or in-depth reports, an agile content strategy builds relevance and brand awareness while also establishing companies as thought leaders in their industries.

Though businesses worldwide are developing increasingly sophisticated content strategies to generate leads, demand and revenue, our latest research – surveying 484 executives across the U.S. Europe and China – uncovered some powerful focus areas for companies, specifically in Europe, to hit those goals. Here, we outline the three digital content imperatives European companies should be actioning against now:

1. Optimize Your Organizational Structure

A slight majority — just over 50% — of all European companies in our research use a centralized creative team, which manages content across departments and geographies. That’s not surprising, since for many years, that’s been the go-to model.

In the past, there were good reasons to consolidate content production with a central creative team. This internal agency model allowed for better governance, more consistent quality and a quicker production time. As businesses became more digital, they moved away from creating awareness through brand-centric content and focused more on mid-funnel content, such as thought leadership or buying guides. These factors were instrumental in companies shifting content production away from external agencies.

But this model is only sustainable up to a point and as many companies transform for the digital age, conditions are rapidly changing. Badly judged centralization can constrain the ability to tailor content locally and add significant differentiated value. Our research showed that German companies are most likely to rely on a centralized approach, at 60 percent. That compares to 53% in the U.S. and 44% in China. The European companies we spoke to said that aligning multiple teams around a unified content strategy is their biggest challenge, at 27%, this compares to 23% in the U.S. and 15% in China.

A better way: Increasingly, more companies — and 32% of our global sample — have moved beyond centralization, setting up additional content-producing centers. Typically, they still have a central creative team, which sets much of the overall content strategy. This team creates and enforces editorial guidelines for quality and owns the visual and verbal identity for consistency. It can also hold the technology and provide training for data-based content creation and the measuring of content success.

The work with our clients in Europe has shown how helpful this organizational structure can be in meeting the unique content demands of different business units and geographies. It’s vital in European markets, which often face other regulatory guidelines.

2. Embrace Tech and Data to Create, Personalize and Measure Content

The biggest challenge for today’s content producers is to consistently produce personalized content at a large scale — and do it in a way that increases revenue. To do this, companies need more than the right content. They need to deliver it to the right person, at the right time and in the right channel – and that requires using more data and automation.

Yet companies in Europe are most likely to say that their solution is simply to hire more content creators, at 24%, compared to 18% in the U.S. and 13% in China. Producing content at scale isn’t something that can be solved by simply adding more employees.

“An agile content strategy builds relevance and brand awareness while also establishing companies as thought leaders in their industries.”

Only 11% of European respondents say they use AI to create and deliver personalized content at a large scale, based on AI-driven customer segments and analytics. That compares with 22% of those in the U.S. and 25% in China. (Germany presents the most extreme example of this at two percent, versus 10% in the U.K.)

And just 10% say they rely on AI-driven analysis of demographic, behavioral and psychographic data, enhanced with third-party data to create customer segments. That compares to 19% in the U.S. and 35% in China.

European companies are also noticeably more conservative about most uses of consumer data, citing more concerns about privacy than those in other regions. And for good reason, as data privacy legislation in Europe is more stringent than it is in the U.S. or China.

A better way: Our research shows that the best approach is investing in an innovative set of practices that make up an agile content system. These systems:

  • Use data to inform content creation
  • Produce content in modules for approval and recombination
  • Centralize and automate content storage
  • Upload a standard design system
  • Measure content effectiveness beyond awareness and engagement

European companies need to push harder to create clear guidelines on how data is used. What is acceptable, and why? What are the guidelines for content aimed at consumers versus B2B efforts? These conversations are increasingly important as companies face a cookie-less future.

3. Tune Campaigns for Different Regions

European countries have long understood that regional differences are significant and strategies that resonate in Portugal might be a total failure in Finland. But in a world of digitally-driven content and AI that can be finely tuned for each market, those differences are not what they used to be. And they can often become excuses for inconsistencies that limit the effectiveness of a content strategy.

These disparities can also be seen in channel effectiveness, with European countries less likely to say their audience engages with them on critical social-media channels. Just 37% of European companies say Facebook provides their highest engagement rate, compared to 55% of those in the U.S. Also, only 15% cite LinkedIn as their most effective, compared to 20% in the U.S. (Interestingly, more European companies say Instagram is their best source for engagement, at 31%, compared to 22% in the U.S.)

Companies in Europe are more likely to use reach as the primary metric of effectiveness than the more advanced engagement metrics used in the U.S. and China. But, companies in Germany (36%) and Spain (34%) are more likely to lock those metrics away in silos specific to individual channels.

A better way: In developing a company-wide digital content strategy, investigate differing standards and requirements in each geography. What changes can be made for greater consistencies within markets, especially regarding automation and success metrics?


FINAL THOUGHTS

European companies are well-aware of the importance of content in their overall business strategy, but to stay relevant and keep up with fast-moving digital audiences, it’s no longer enough to produce quality content. Content must be personalized, engaging and delivered at scale.

Our research shows that European companies have essential steps to take against some important measures, but by optimizing organizational structure, leveraging tech and digital data to create personalized content for varying consumer and regional segments, they will reap the full benefits of an effective and strategic approach to digital content. Watch those leads come in, that demand increase and that revenue rocket.

Prophet can assess your content strategy and help find alignment across business units and geographies. For more on how to scale your content, drive efficiency and maximize growth, contact our Marketing & Sales practice today.

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A Model for Transformational Change Management in a Post-Pandemic World

Transformation calls for a level of organizational fitness that’s radically different. How ready are you?

The past year has shown the critical capacity organizations need to build for change. The COVID-19 crisis saw many organizations forced to adapt business models, embrace new ways of working and instill a more digital culture mindset. As we see the light at the end of the tunnel, the focus for organizations should be on developing a resilient approach to transformational change management that outlasts the pandemic and supports ongoing transformation. This means that companies need an enhanced approach to change management to ensure they have the agility to reinvent themselves more frequently in this disruptive age.

The Shortcomings of Outdated Change Management Models

It’s been 25 years since the advent of change management and organizations are facing the reality that change is more than a single event to be overcome. It’s now apparent that the incessant onslaught and acceleration of technological advancement requires a new perspective if organizations are to thrive in this environment. Even today, change models (e.g., Kotter, ADKAR) mostly posit some return to stasis and require their deployment in never-ending waves of programmatic change. There must be a better way.

A Modern Model for Transformational Change Management and Organizational Fitness

What is to be done? How might we build the organizational resilience required to not just “manage change” but rather to collectively engage with a positive mindset? And it’s not just technological shifts we need to prepare for, as we know that the forces of remote work, climate change, environmental sustainability, stakeholder capitalism and social justice movements will be impacting us for years. But there will inevitably be others. How might we navigate the many unpredictable forces the modern enterprise will need to face?

At Prophet, we’ve chosen to view the enterprise as a macrocosm of the individual. We believe it is important to take a human-centered approach to transformation because no matter how digital an organization becomes it is important to recognize that it is still ultimately a human endeavor.

“How might we build the organizational resilience required to not just “manage change” but rather to collectively engage with a positive mindset?”

As we have reflected on the inadequacies of outdated models and methods for change management, we have begun to recognize that there is a new discipline emerging in our field of work: transformational change management. Transformational change management begins where change management leaves off. It recognizes as fundamental the fact that there is no single milestone to be achieved: there are many. The process of transformative change, therefore, is viewed as an ongoing journey, often with a higher altitude, strategic destination. As a result, the ability to absorb change has become a core cultural attribute for organizational growth.

Over the last five years, our transformation practices have begun to crystallize into specific behaviors, methods, tools, skills and models. And those, in turn, have yielded the insight that our human metaphor for the organization extends to address the issue of embracing continuous change as a way of life. Prophet’s Change Fitness Model is a way of describing five connected and ascending levels of capability for individuals, teams, leaders and organizations to thrive throughout ongoing transformation.

Level 1 is where we view the world with a fixed mindset and change is viewed as an obstacle to be overcome.

Level 2 is where things begin to be framed slightly more positively and change is a milestone to be achieved and celebrated. However, our worldview still tends to favor a return to a steady state afterward.

It is only at Level 3 that we begin to enter the world of transformational change and the traditional tools necessarily begin to fray. Change is now a journey, often one spanning several years, with many cross-functional, cross-organizational and enterprise milestones to be achieved and value to be measured. Level 3 is where our mindset, individually and collectively, must truly shift to one of growth and abundance. Change is exciting because it leads transformation into something better: a better business model, operating model, and often culture.

Level 3 is where Prophet often meets our most significant engagements. Client organizations recognize the need for changes to their DNA and as a result, all the organizational components of Body, Mind and Soul must evolve as well.  Our desire with these clients is to leave them better than we found them – at Level 4. And therefore, we seek to design and manage the program such that the pace of change tilts, bringing as many of the colleagues into a state of flow as possible. This means moving just enough pieces at once so that everyone is working at the height of their competence, but not to push efforts so fast that people feel burned out.

Ultimately, we believe organizations that learn to thrive on change and embrace a growth mindset eventually find their way to Level 5 – a state of play where transformation is a sport. It’s an opportunity to find yet more ways to excel, individually and collectively.

Now that we are seeing the world through the lens of the Change Fitness Model, we are more able to quickly diagnose needs with our prospective clients. A handful of probing questions – easily inferable from the chart below – quickly reveal where the organization stands today and suggest the kinds of work that could be helpful to build change muscle and resilience for the transformations to come.


FINAL THOUGHTS

As you look at your organization today, consider the descriptions in each row. Which seems to most accurately describe you as a leader? Which best characterizes how your team stands currently? What about your organization as a whole?

As you look forward to the rest of 2021 and beyond, a few minutes of consideration will likely reveal some important opportunities where your organization should develop increased change fitness. What actions might serve you best?

If you want to learn more about how you might increase your organization’s change fitness and build long-term resilience, then contact our Organization & Culture practice today.

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Three Ways Financial Services Companies Can Help Advisors Win in the Meme-Stock Age

Who cares if it’s trendy? Meeting digitally-driven new investors in their favorite channels can help brands win fans.

Some people – including the co-founder of Reddit – say that the tsunami of new investors snapping up shares of GameStop, Clover Health and AMC amounts to a “bottom-up revolution.”

Maybe. We certainly agree that the meme-stock movement, the viral stock surge of GameStop, AMC, and others in the first part of 2021, means new and old types of consumers are looking for financial advice in new places.  The pandemic-induced shift to virtual interactions made consumers open to new channels for receiving advice. As we look beyond the pandemic, and advisors need to find ways to establish credibility and win trust.

These digitally-driven customers represent enormous growth possibilities if served in the right way. For companies and advisors, this requires agility in responding to market changes and commitment to cohesive omnichannel experiences, especially when it comes to onboarding clients.

Companies that don’t adapt fast enough or don’t support their financial advisors with the right tools are pushed out of consideration. A recent study of more than 250 financial planners finds that 77% of advisors have lost business because they did not have the right technology to interact with customers. In fact, these advisors reported losing an average of 20% of book value as a result.

Redefining Target Markets

First, it’s time to ditch the negative “Reddit bro” and “FinTok” stereotypes. Yes, there’s plenty of over-the-top gambling going on in social media and some genuinely terrible investing advice. However meme-stock investors aren’t just young kids investing pizza money. In fact, meme-stock investors represented a major slice of America. A Yahoo Finance-Harris Poll found that in January 2021 – the height of the GameStop saga – 28% of American adults had purchased shares of viral stock that month. Nearly half of those people invested more than $250 and almost 17% were more than 45 years old.

But even before that, we saw massive increases in the demand for digital financial advice. The pandemic served as a financial reset for many, and consumers began reaching out to advisors with greater urgency. One study found that 67% of people said the pandemic had been a wake-up call for them to examine their finances.

“A recent study of more than 250 financial planners finds that 77% of advisors have lost business because they did not have the right technology to interact with customers.”

Another study from  Nationwide Financial, which surveyed more than 2,000 people, found that by the first week in April of 2020, 24% said the pandemic had ­caused them to contact a financial adviser for the first time. It also reported that 80% of respondents felt they had lost control of their ability to manage their investments and finances.

Fast forward eight months to the GameStop frenzy. “How to invest in stocks” surged in Google search rankings, proving how quickly people moved from feeling helpless to digital derring-do. These people, who are adults, want answers, with 73% of viral-stock investors saying they have researched the U.S. financial system and 20% consulting a financial advisor before buying.

“Since then, some advisors and firms proactively publish content with a clear point-of-view on how to navigate meme-stock fluctuations. They adjust their content strategy to anticipate the flood of customer questions and to educate and prevent hasty decisions.

The best of both fintech and legacy companies are stepping up their tech investments. They understand the elevated consumer demands for frequency and channel of advisor interactions. Facet Wealth, for instance, makes its sign-up process straightforward. Once a prospect becomes a client, the dashboard makes it easy for them to engage with their finances from one place and schedule an appointment with their advisor.

It’s smart since 53% of millennials and 29% of baby boomers say they would switch advisors if they can’t use satisfactory technology.

Three Ways Financial Services Brands Can Gain Relevance in the Meme Stock Era

  1. Survey financial advisors to understand what support they need to proactively initiate conversations about topics like viral stock options and to explore different channels by which to interact with customers.
  2. Create a market sensing function to respond to market changes. And compile a centralized point-of-view on hot topics, offering a range of responses to support advisors.
  3. Incorporate a regular placeholder within the marketing content calendar for market commentary to proactively address market changes and reinforce brand credibility.

FINAL THOUGHTS

Firms that win in the market use digital-first thinking to create agile experiences and proactive communications. They’re stepping away from dated ideas about who invests and why. These innovators are working to establish trust and meet customers where they are right now. They’re striving to support remote customer-advisor relationships that meet and exceed technology table stakes. In doing so, they’re building trust and relevance in the era of digital-first finance.

REPORT

A Guide to Driving Organizational Change for the Future of Work

Evolving from traditional to transformational change management isn’t easy. Yet it is the surest path to growth.

Want to get your organization fit for the future working landscape?

The past year has shown the critical capacity organizations need to build for change. The COVID-19 crisis accelerated many organizations’ re-examination of their ways of working and cultural norms. It also introduced a profound new set of forces of organizational change, putting many organizations’ culture and resilience to the test.

To thrive today, companies need to evolve from traditional to transformational change management across all levels of the organization in order to support long-term growth and build resilience.

The latest research from our Organization & Culture practice looks beyond the self-evident insights of 2020 to propose a way forward for leaders driving transformation and how to make an organization fit for change.

This report provides deeper insights on:

  • The critical new forces of cultural change shifting the landscape and shaping transformation for years to come
  • A new change model that tracks an organization’s ability to transform across multiple measures
  • The three primary areas where leaders should invest to help their organizations become fit for the future working landscape
  • How to identify your organization’s fitness level and the kind of work needed to strengthen it for transformation
  • The connection between an organization’s change fitness level, its ability to take on transformation and positive financial outcomes

Download the report below.

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Fit for Change: Driving Growth and Transformation in the New Future of Work

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REPORT

The Critical Traits of an Innovative Company in a Post-Pandemic World

To stay relevant, Innovation can’t stop now. The future depends on a steady stream of new ideas.

It’s the best of times to innovate. It’s the worst of times to stand still.

The COVID-19 pandemic has been a catalyst for innovation and accelerated change with many companies forced to adapt business models and develop, deliver and scale new products, services and processes rapidly in order to remain relevant and sustain competitive advantage. Innovation can’t stop now. The future success of any company depends on its ability to continually innovate.

In this report, our Experience & Innovation practice outlines what’s required for a company to become a serial innovator, one that can not only survive but also thrive in our disruptive world.

Read this report to learn: 

  • Why innovation is imperative now
  • The seven traits of a truly innovative company – impacting how (and how well) an organization sets itself up to innovate
  • Where your company sits on our Innovation Grading Model
  • How to be an enlightened innovator for the times ahead

Download the full report below.

Download Report
Fit for Change: Driving Growth and Transformation in the New Future of Work

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Thank you for your interest in Prophet’s research!

BLOG

Prophet’s Pro-Bono Journey With the LGBTQ+ Civil Rights Movement – A 20-Year Journey

Stories–understanding how legal issues impacted the everyday lives of people–turned the tide.

In the spring of 2000, I was approached by a colleague and friend to consider doing some pro-bono work for a small nonprofit with a critical strategy project. I was caught off guard. Our company, relaunched as Prophet Brand in 1999, was in the middle of its first growth surge, powered by David Aaker’s global brand guru status and the Dot.com investment boom. As a young, fast-growing firm, we were having a hard time establishing our culture, growing our team, defining our methodologies and driving high-quality work for paying clients. I struggled to envision how we would be able to free up the time and resources to also do high-quality work for pro-bono clients. My mid-30’s CEO mindset sensed that this was a luxury we couldn’t afford. Luckily for me, this Prophet colleague – Cathy Halligan – didn’t give up. She was determined to help me see why doing this kind of work was consistent with our aspiration as a firm and my hopes as a leader.

The nonprofit organization had a passionate leadership team that enabled some of the only visible wins for its movement in the United States. But, it found itself at a crossroads. Its talented executive director, team and board needed to figure out how to capitalize on its strengths and build a story that would help power the organization and its resources to more transformational impact. As Cathy Halligan consistently argued, Prophet circa 2000 had exactly the right mix of expertise and perspective to help solve this problem. If we weren’t ready to generously apply our time and talents to helping change leaders answer their hardest brand and narrative questions, what were we here for?

Her persuasive words and spirit have stayed with me to this day. Cathy’s determined efforts led us to shape our first pro-bono project in the fall of 2000 with The Lambda Legal Defense and Education Fund. It was the first of what’s become a series of Prophet pro-bono efforts to support a range of US organizations committed to advancing LGBTQ+ civil rights in the United States and globally.

Starting Our Work With LGBTQ+ Civil Rights

It may be hard to remember the state of the LGBTQ+ civil rights movement at the turn of the century. Bill Clinton had signed the Defense of Marriage Act into law in 1996, stating that marriage could only be between one man and one woman. At the state level, many anti-LGBTQ+ laws and ballot measures were getting passed left, right and center. Also, the AIDS crisis was still roiling the broader LGBTQ+ community. Times felt dark.

The single bright spot of progress was in the courts, where courageous citizens and their lawyers were bringing legal challenges to some of the most oppressive anti-LGBT laws. Lambda Legal and some of its allies were the driving forces behind this strategy. They would identify the most egregious laws that allowed for discrimination in employment, housing, healthcare, education, etc., or that still criminalized consensual LGBTQ+ relationship behavior between consenting adults, find plaintiffs who would sue the government asserting that these laws were unconstitutional, and then provide the plaintiffs with all the legal support needed to execute the cases. Through this strategy, Lambda Legal helped win the first HIV/AIDS discrimination case in the 1980s, won a historical legal precedent holding schools accountable for harassment and violence against LGBTQ+ students in the 1990s and achieved broad progress on so many other legal battlefields.

But the organization was made up of lawyers using lawyer-speak in all their communications, was chronically under-funded and was not well-known or understood even within the LGBTQ+ community, let alone the broader public. Our job was to help them land on an aspirational purpose, brand strategy, narrative and roadmap that would help elevate its impact, enable transformative change, dramatically increase its donor base and elevate its reputation among the broader movement.

We unlocked a critical insight – most people didn’t understand how the outcomes of Lambda’s work would impact the everyday lives of LGBTQ+ people, families and communities. We needed to help them turn their legal strategies into human stories told through the faces and voices of those directly affected. We needed to help them develop a storyline that up-leveled the context of their work – to help people understand how making progress through the courts was an essential building block to advance the movement’s broader civil rights agenda. The selected strategy created a second major plank for the organization – a commitment to investing in dialogue-shaping education, as well as precedent-setting litigation in the pursuit of social justice. The way in which it was embraced and executed fundamentally changed the character and trajectory of Lambda Legal, elevating its influence, dramatically increasing its fundraising prowess and growing its capacity and resources to drive transformative change.

Adding on to the Movement

Later that decade, we found another organization in the LGBTQ+ movement – Equality California –  a trailblazer with charismatic leadership and an excellent track record of advancing the most comprehensive set LGBTQ+ legal protections passed by elected officials and politicians anywhere in the United States. Prophet aligned itself to support Equality California when the organization and the movement were at an incredibly low point. Many were blaming the organization for losing the “No on Prop 8” anti-gay marriage California ballot initiative in the 2008 election, in effect ripping away hard-earned marriage rights and putting the legal status of 18,000 same-sex marriages from the previous 4 months in limbo.

Equality California had to learn to acknowledge the mistakes with grace and humility while finding a new way forward. We dug deep to unlock a new set of insights across an array of stakeholders and learned that there was an opportunity to reposition the organization as a champion for full equality for LGBTQ+ Californians, not just same-sex marriage. Getting legal rights was not enough if it didn’t lead to a pervasive change in the “lived” experiences of LGBTQ+ citizens across all dimensions of their lives. And that marriage, while important, was only one of the vital steps in this path to full “lived’ equality.

This kicked off what turned out to be a 10-year plus relationship with leadership at Equality California. Over the course of our partnership, we found many ways to support its leaders and its mission. For example, we helped provide detailed insights work to understand how to shift perceptions of potential allies and voters as LGBTQ+ civil rights were tested through ballot propositions. We also helped with donor growth strategies and volunteer mobilization campaigns.

In 2017 and 2018, we helped the next generation of leaders unlock a new purpose and story for Equality California after the marriage question had been settled. What should “full and lasting” equality look like? There were still dramatic disparities in the health and wellbeing of the community and continuous attacks on the gains that had been achieved. How could Equality California become a movement builder, intersectional and inclusive in nature, and fit for a new era of digital activism, grassroots energy and urgent necessity? We helped them answer these questions, and then retooled the brand along with its look and feel to reflect the new strategy. “Until the work is done” became the phrase that captured the spirit and the intention of this team.

Celebrating 20 Years of Giving Back

While these stories spotlight the bookends of 20 years’ worth of pro-bono energy and commitment to this movement, there have been many other organizations and themes that Prophet teams have touched along the way. We’ve rebranded a groundbreaking leader in its drive to create safe, respectful and healthy K-12 schools for LGBTQ+ students, helped to enrich stories for teams working to redefine LGBTQ+ images in the media and supported leaders tackling the tough issue of LGBTQ+ youth suicide rates and homelessness. No matter what the organization or the issues, committed Propheteers stepped up to the table with energy, expertise, humility and compassion to deconstruct thorny questions, unlock new insights and co-create positive strategies, programs, identities and narratives to move the work forward.

As we launch the next chapter of Prophet Impact, with three focus areas – equality, social mobility and sustainability – my hope is that we can build upon our journey within the LGBTQ+ movement, and the organizations and grassroots advocates who power it. Prophet has grown in scope and scale now, with a deeper set of capabilities to support bold organizations aspiring to drive transformative change. Our experience has taught us that it is only with sustained effort that we can hope to support these movements and organizations in our shared desire to drive enduring, meaningful change. And that we must be prepared to continue to invest, even in the face of demoralizing setbacks, fierce resistance and uneven progress.

I am grateful for Cathy Halligan’s persistence more than 20 years ago, and for all the energy that so many creative, strategic, committed teammates have put into this body of work over the years. So much effort and so much heart have been poured into our collaboration with these trailblazing organizations. Our talents elevate the impact of organizations and movements on the ground. We see firsthand the struggles and challenges these movements face in their efforts to drive systemic change. But rather than feel daunted by these realities, we bring even more determination and optimistic energy to the work at hand. We’re enriched and strengthened as professionals and humans through our shared work together – we get way more than we give.

“No matter what the organization or the issues, committed Propheteers stepped up to the table with energy, expertise, humility and compassion to deconstruct thorny questions, unlock new insights and co-create positive strategies, programs, identities and narratives to move the work forward.”


FINAL THOUGHTS

Happy Pride. Happy 20th anniversary, Prophet Impact. Here’s to a new generation of leaders and the next 20 years of effort focused on helping to build a healthier, more compassionate and more just world.

BLOG

Hill House Home: A Model for DTC Brands

This start-up’s fast moves, quick changes and hot drops offer lessons for much bigger brands.

Hill House Home (HHH) and its internet-famous Nap Dress have an impressive news presence for just a six-person company founded in 2016. So, how did the founder Nell Diamond generate so much publicity? The company has followed the right strategy playbook to leverage organic content from a community of loyal customers to spark demand for the brand.

Context is Key

Some companies found accidental success during the pandemic, while others capitalized on the new opportunities. Hill House Home did both. Though the brand launched the Nap Dresses in 2019 and trademarked the name in January 2020, the cutesy name became a masterstroke of branding when the divisions between work and home were erased. Rather than relying on the good fortune of newfound popularity, the brand doubled down on the production of dresses and embraced its new reputation as an apparel, not linen company, and it worked. The five-year-old brand had 275% growth in 2020, with the Nap Dress category increasing 1120%. The lesson here is in order for brands to stay relentlessly relevant, they need to capitalize on the quickly changing world around us.

Unafraid to Refocus 

Hill House Home started with bed linens as its primary product offering, but the founder always had a bigger vision for the company beyond bed sheets. When the Nap Dress quickly outpaced other categories, Diamond wasn’t afraid to lean into the organic PR customers enabled and spurred even more product demand. Although Diamond is quick to point out that all categories experienced triple-digit growth during the pandemic, the Nap Dress category quickly outpaced all others. It was so popular, likely due to its ruched design, that flatters many body types and professional yet comfortable look, perfect for working from home. HHH allowed the customer voice to guide which products sat at the forefront of the brand. Other DTC companies can learn from HHH’s example and avoid becoming too attached to their product vision to accelerate growth in products that show the most potential.

Drop It Like It’s Hot 

The other half of the production equation that has worked well for HHH is selling products using the “drop” model — an industry practice that goes against the usual model of releasing products on a rigid calendar 4-6 times a year. The brand produces limited runs of its products and drops them at random times throughout the year. This creates buzz and excitement more reminiscent of a streetwear brand than a Victorian-style dress brand. Online, women talk about their Nap Dresses the same way sneakerheads do about the latest Air Jordans.

“The cutesy name became a masterstroke of branding when the divisions between work and home were erased.”

Diamond’s vision from the start was to create luxury products at a non-luxury price point, and her production timeline helps boost the brand’s luxury feel. Although the dresses are not made of luxury materials, simply pulling the strings of supply and demand creates an exclusive aura. Other DTC brands similarly can capitalize on the scarcity effect, making limited edition products that are automatically associated with exclusivity.

Content is King

Hill House Home knows that sharing beautiful marketing images and user-generated content naturally gets people talking. The brand maintains an active blog filled with stories from the founder and has more than 100k followers on Instagram. The company shares a mix of photos with of-the-moment influencers, UGC and non-product photos that come together so seamlessly that it becomes difficult to tell which photos were taken by the company and which by its fans. The best CEOs know that loyal customers are their best marketers, and that content and community can fuel each other, generating more and more excitement around the brand.

The brand vision is aspirational and authentic. HHH describes itself as a “lifestyle brand that brings beauty and joy to everyday rituals” which it delivers through high-quality accoutrements such as sheets and bathrobes. Although customers may not attend an outdoor picnic complete with china and tea sandwiches, as many photos suggest, a customer may realistically wear a Nap Dress on a walk outside with friends. All of this is a credit to Nell Diamond’s strong conviction in her own personal aesthetic. The product line and color offerings are tightly curated and adhere to the brand’s ultra-feminine image. It would have been easy to create a Nap Dress in every color and try to appeal to everybody, but Diamond stuck to one unified creative vision.


FINAL THOUGHTS

Hill House Home is a model for any DTC brand looking to create the right mix of content, commerce, and community. Here are the four key takeaways for other DTC brands:

  • Content: Recruit customers to market your product for you and allow them to feel part of the brand by championing their content
  • Commerce: Adapt when necessary and let your customer guide you instead of trying to guide your customer
  • Community: Create buzz around product launches through innovative production models and the scarcity effect,
  • Purpose: No brand can be relentlessly relevant without having a strong sense of their own brand vision and purpose

Prophet helps companies establish a DTC business mindset and approach for customer-centric, performance-based growth activities, fostering direct consumer relationships to achieve the benefits that unfold. Prophet also helps digitally native companies reach next-level growth in brand and consumer engagement, with a focus on profitability and long-term sustainability.

Let’s chat how your brand can reach and engage potential customers directly to maximize growth.

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