South African Business Culture and The New Consumer

As a growing awareness spreads through the boardrooms of South African companies that the internet is not only coming, it's already been here a while and it's changed fundamentally the way customers (and employees) think and behave, a ripple of alarm goes out: are we able to survive, even thrive? Or are we corporate Titanics, hurtling full-speed into the pack-ice while the officers waltz blissfully in the ballroom?

And when the realisation finally sinks in that not only their structures and processes but also their corporate cultures are handicapping attempts to adapt to the new digital age, there's inevitably a demand for more and more training.

I have done a lot of what passes for culture change work in my life, and it still irks me when someone asks me to help them develop a training programme that will change the organisational culture of one group or another. It's not that senior managers don't understand that there is much more to engendering such a change than simply training people, it's that they don't want to be bothered with anything more complicated. And they certainly don't want to be in the awkward position of having to acknowledge that they themselves may be a large part of whatever problem it is they have defined.

You can’t change an organisational culture simply by “training” one person at a time (unless of course you start at the shareholders and the CEO and work downwards, but that’s another story). Bottom-up culture-shifts cannot be induced by senior management -- they usually only happen as uncontrolled revolutions initiated by employees themselves. That happens more often these days of course, with the disruptive hierarchy-oblivious culture of digital natives bubbling up into the lower levels of organisations and challenging legacy processes that were installed way before the web-born collaborative age. But the culture of openness and sharing which the web has fostered is, unfortunately, rarely the kind of culture-shift that upper management would like to induce.

Training is not futile -- far from it -- but in order to get the intended culture-shift momentum going training has to be concentrated in time and enterprise-wide in scope. And it needs to have a shifting-culture context already in place if the training is going to take root and grow. Anyone in the corporate learning field knows that training is typically only one component of any performance improvement initiative, just as culture change is but one component.

Organisations waste vast amounts of time and money looking to one-dimensional strategies to solve multi-dimensional problems. There are natural reasons for this: the silo mentality makes it hard for any one decision-maker to influence more than one area; we habitualy measure and reward low-level tactical activities rather than high-level strategic impacts.

The e-business culture shift problem has more dimensions to it than most senior managers are comfortable getting their heads around. Up-skilling is but one of those dimensions: you have to get all of your employees, from top to bottom, to understand the essential technology and process issues, as well as what it means to be an e-business.

But there are so many other dimensions, macro and micro: customers are more discerning, better informed, less tolerant, and a lot less loyal; the media for communicating marketing and PR messages are mutating; competitors are now global, often appearing overnight so you never see them coming; the pace of transaction processes has to accelerate up to real-time, having knock-on effects on systems and the employees and suppliers who use them; corporate strategy-setting processes may be inadequate to deal with the flexibility the rapid disruptive market changes demand; and the impact of all of this is felt through production, logistics, legal, HR, and finance departments.

The primary reason why businesses fail to become e-businesses is management resistance to change; which is also the primary reason why businesses fail, period. So getting a change of culture in place, fostering a culture that embraces change, is vital. But it is typically upper management where that culture change is most needed.

Despite the quaint notion of dynamic leaders at the helm boldly charting new courses, in my experience senior managers don't change unless they become aware of a compelling need to do so. Perhaps this is the point at which a little training might go a long way. When senior people come face to face with just how far adrift of current realities their own norms have become, it's interesting to see who bolts for the lifeboats, who goes back to the ballroom, and who heads for the bridge.

US marketers are still oblivious to Web 2.0

Zoomerang has published a study which reveals that even though Web 2.0 has hogged the business headlines (for what, a couple of years now?) 8 out of 10 marketing professionals still are not even familiar with the term. At the other extreme, one third of those who have latched onto what is going on are using web 2.0 approaches in their marketing, and most of those (70%) are having success.

Assuming the study is correct, what does this say about how in touch with their markets most marketers are? Marketing is all about understanding consumers and reacting to (if not anticipating) shifts in interests, attitudes, values, and behaviours. It is hard to imagine that web 2.0 (which, despite what its detractors may say, heralds a megashift in consumer culture) has gone unnoticed by the hordes of marketing wonks, their agencies, researchers, and advisors. I could accept that they don't really understand it or that they dismiss it as a temporary anomaly -- but that they have never even heard the term web 2.0 is just scary.

Corporations (particularly of the kind reviled by The Cluetrain Manifesto) are notoriously slow to catch on to or care about what their customers or potential customers are doing. You sort of expect that level of indifference in the folks in Finance or Production or even in the boardroom. But if anyone should be intimately in touch with the chaotic changes in the consumer world, it's the Marketing people. Maybe there's a new digital divide to think about: those who care about what is going on in their professional area have tuned into digital media; those who do not are still waiting for the memo from corporate.