Dark Side of Word of Mouth

by:

Joe Patti

I participated in a work session for the development of a cultural masterplan for the county today. My table was focused on ideas to attract creative professionals to the community. There was a pretty good cross-section of arts disciplines plus a couple people from the general community involved in the discussion so the quality of the conversation was surprising informative.

Some of the conversation revolved around the lack of infrastructure to ensure a consistent transition for creatives through all stages of their development. People could gain education up to a certain point, then had to leave to continue their education, but could return because there were some opportunities suited to that education. There was discussion about how to fill in that gap with things like mentoring or apprenticeships.

There was a similar conversation related to the frequency of film productions in town who had to leave to do editing and scoring elsewhere because there were no facilities for that locally. Yet there are a number of highly skills musicians capable of contributing to film/tv/video game scores. There are two product that might be of mutual benefit to each other, but nothing to bind them together.

As much as discussions like that raised my awareness about resources, there were some parts of the conversation with which I was all too familiar. A big impediment to attracting new creatives to the community was the lack of value placed on the artistic product.

People want musicians to play for free. People want to pass very little for lessons, apparently unaware of the rent and material costs associated with teaching visual arts disciplines.  Local people view the work on display at the major ceramics show as overpriced while people from out of town swoon at getting great work so cheaply.

Something that did catch my attention was mention that it is apparently difficult for new arts schools to make people aware of their existence due to the decline of traditional media channels and the way social media like Facebook has prioritized information from friends over ad content and news.

Basically, in a place where there is good word of mouth advising people where to send their kids for lessons, it is difficult for new players to break in.  From what I was told, the person trying to open a new school found that those yard signs people put up during elections were pretty effective. Unfortunately, zoning laws prevented where they could be placed and for how long. There are 3-4 existing schools in the same category and they apparently all said they don’t advertise and depend solely on word of mouth to get business.

Now theoretically, some good search engine optimization should provide the new kid in town with some exposure for anyone randomly searching for lessons. But sometimes even new residents try to tap into the local reputation network as they get themselves set up rather than doing general searches. One woman mentioned she was a long time resident of the community, but a friend just moving into the area told her where she should be looking for schools and services for her family. The newcomer had been investing a lot of effort soliciting word of mouth recommendations.

Learning this was a small peek into the dark side of word of mouth. I haven’t thought about it and paid attention to behavior enough to make any pronouncements about implications for arts and culture in general. If this is a reflection of what is happening in many communities, then a dependence on word of both in the context of a national fracturing along socio-political lines could be quite concerning. But if this is a dominant factor in my community and only associated with extra-curricular activities, then it probably isn’t a big deal.

It still may be worth paying attention to how reputation networks are operating in your communities.

Big Kids Play With Bigger Blocks

by:

Joe Patti

I saw an article on Gizmodo in the last couple weeks about scientists who designed 3,900 pound concrete structures that can be moved by a single person. As I read about cuts to arts in schools and the elimination of recess, I figured there was a need to toss out an example in support of unstructured free time.

There are a bunch of fun to watch GIFs on the article’s page, but here is a video of what they did:

As some of the commenters to the article point out, yes it is one thing to roll pre-cast objects over a concrete floor and another to quarry stone to transport over muddy ground. So while this may not entirely explain how Stonehenge, the pyramids and the Moai of Rapa Nui were created, there is some proof of concept upon which to base the design of structures to be used in emergency situations.

From my point of view, the development of the objects people are moving around have some basis in playing with Legos or other building materials and may move on to increasingly practical applications. I am sure that at some point in the past, at least one person who contributed to the design of the project was afforded the time to juggle things around in their hands to see how it all fit together and explore the properties of what they made were. Leaps of imagination and experimentation occurred until someone made a video of people rocking two ton chunks of concrete around with a light push.

Time to play with the simplest objects can result in new insights. But that is difficult to accomplish if you grow up thinking there is no value in such activities, exploration and curiosity.

This may not be the first time you heard about someone gaining insight into ancient construction techniques. A retired construction worker in Michigan demonstrated some much more compelling theories about ancient construction techniques some years ago. (I couldn’t find any better quality video than this.) He employed the same design elements of rounded/beveled edges to great effect, especially considering he was moving blocks across less prepared surfaces and using tools more readily available to anyone.

Though to use his techniques in an emergency situation, you would need much more knowledge to construct barriers and structures than with the prefabricated concrete objects in the first video.

Path To Promotion Doesn’t Necessarily Have To Be Vertical

by:

Joe Patti

You have probably heard some form of the Peter Principle expressed before. At its most cynical, it is usually defined as, “A person will be promoted to their level of incompetence.”   While this has often been used somewhat tongue-in-cheek, according to Alex Tabarrok at Marginal Revolution, some researchers set out to test if this was really the case.

Studying more than 40,000 sales people at 131 firms, they found this was largely borne out. It has often been assumed that the skills that made people successful at sales would be transferable to management roles, even though there are metrics that are reliable predictors of managerial effectiveness. In fact, the effectiveness of salespeople under the supervision of an improperly promoted supervisor is often inhibited.

…we find evidence that firms systematically promote the best salespeople, even though these workers end up becoming worse managers, and even though there are other observable dimensions of sales-worker performance that better predict managerial quality.

[…]

What is striking, however, is that – among promoted managers – pre-promotion sales performance is actually negatively correlated with managerial quality. A doubling of a manager’s pre-promotion sales corresponds to a 7.5% decline in manager value added; that is, workers assigned to this manager will see their sales increase 7.5% less than workers assigned to the manager who was a weaker salesperson.

What drew my attention to the Marginal Revolution post was the discussion of how to motivate people to perform well without necessarily promoting them to a position which is a mismatch to their strongest skillset. Non-profits often don’t really have the option of providing the increase in pay that would generally accompany a promotion. In many cases, people applying for positions at non-profits are motivated by tangible and intangible factors other than money. (I shouldn’t need to add that this is not a license to normalize paying ridiculously low wages.)

This is good because the first thing the researchers suggest as an alternative to promotion is incentive pay and that may not be a viable option for non-profits. They do caution about totally eliminating promotion as an option since some workers are more motivated by promotion than salary increases. What they do suggest is decoupling job performance in a current position from a set career ladder associated with that position.

So for example, in a non-profit setting you may not look to promote an event coordinator working in the Development Office to assistant director of development if they don’t have the best social skills. Instead, you may want to shift them toward a management or director position in an operational role in recognition of the superior organizational and planning skills they exhibited with events.

Some Reasons Acquiring New Customers Can Be Expensive

by:

Joe Patti

As so often is the case, Seth Godin recently made a post many elements of which are often cited as mistakes arts organizations make.

It should be noted that the things Godin lists are not meant to apply specifically to arts organizations. As often as we talk about how it is not appropriate for non-profits to be run like businesses, it is important to remember that since we are both trying to appeal to human beings to use a product or service, there are still a whole lot of problems we have in common.  The over arching philosophy and motivation which guide the responses to these challenges is what often differentiates non-profits from for-profit entities.

The fact the post is titled, When your project isn’t making money,” doesn’t mean it is aligned to businesses with a profit motive. Non-profits need to make money to pay their expenses, after all.

Of the 16 or so issues he identifies under the “It might be that your costs of acquiring a new customer are more than that customer is worth” subheading, only about 4-5 aren’t directly applicable to non-profit operations, and it only takes the slightest bit of imagination to see parallels.

Here are some of the more significant issues he lists. You have probably seen many of them mentioned before.

Because there’s a mismatch between your story and the worldview of those you seek to serve.

Because the people you seek to serve don’t think they need you.

Because it costs too much to tell these people you exist.

Because the people you seek to serve don’t trust you.

[…]

Because you’re focusing on the wrong channels to tell your story.
(just because social media is fun to talk about doesn’t mean it works)

[…]

Because the people you seek to serve don’t talk about you, thus, you’re not remarkable.

Or the people you seek to serve don’t like to talk about anyone, and your efforts to be remarkable are wasted.

Because your product doesn’t earn traction with your customers, they wouldn’t miss you if you were gone–the substitutes are easy.

Because even though you’re trying hard, you’re being selfish, focusing on your needs instead of having empathy for those you seek to serve.

Issues of lack of awareness, lack of trust, selfishness, competing substitutes are all topics of discussion in the non-profit arts community.

In fact, you may not associate some of Godin’s points with for-profit businesses. Do you immediately associate empathy with those whom you seek to serve as a characteristic of a for-profit business?

If you think about it, when call a customer or tech support number with a sense of dread and get your problems solved within five minutes, you may have been dealing with a company employing empathy for those they seek to serve. (Or at least one making an effort to retain your loyalty)