Will you “like” the facebook car?

The car industry is facing interesting times and the large dinosaurs are starting to realise this. Mary Barra of General Motors is now openly talking about the need for the industry giant to disrupt their own business model.

No doubt the rise of industry rebel Tesla has rattled the dinosaur cages with their very different business model:

  • Year after year they have been voted the most innovative company by their automotive competitors despite their relatively small R&D budget.
  • They have not outsourced their value chain as the rest of the industry
  • They own their very different sales and distribution model.
  • Their cars are platforms that can be upgraded with software rather than recalled.
  • Their core technology is about energy storage - not cars.
  • They are willing to experiment with self-drive despite the warnings from corporate lawyers.

Most car manufacturers are not ignoring Tesla anymore, although they still wonder how a small company like that could be allowed to change the entire industry.

Tesla is however just the start of the monumental battle that the car manufacturers are facing and they share the same fundamental assumptions that the mature companies base their strategy on.

Competing with Tesla might be known as the "good old days" in automotive
The new competition from Google and Apple is likely to be of a very different kind, completely alien to the industry in a number of ways. They might challenge some very basic assumption of the industry - that it is about moving people from A to B and that you want to own a car.

From owners to users?

In most of their activity, Google distinguishes between users and customers and they are likely to include this thinking in their automotive business model. You might not need to own the Google car - it might even be free to use like most of Google's products. It might be paid for by somebody else - somebody that wants to sell stuff to you.

What if it is not about moving people from A to B anymore?
This could transform the industry from transportation to media delivery and ownership of the consumers time while being transported. This is likely why Apple is so interested in getting into automotive: They want to get Siri into the car to be able to influence the user while being transported. The car could be their 4th ecosystem - their 4th starfish business model.

It looks like the car is becoming part of the battle of search - the battle of the first manipulation of the user. Google already knows that browser-based search is coming to an end and that the automated assistants will take over. Their battle is not just with Apple. Amazon prime is now the starting point for over 20% of all search and Facebook has recently introduced "M", their new assistant.

 

amznfbcar

Will you "like" the facebook car?

This could mean that we eventually are going to be introduced to the Facebook Car and maybe the 2nd Amazon Car (Volvo made the first).

 

Apple is conquering the world with starfish

Why is Apple obsessed with starfish and what does starfish has to do with world domination? The answer cannot be found in traditional business models.

The end of Growth for Apple?

Financial analysts and other experts have year after year predicted Apple’s downfall by looking in the rear view mirror. It is not seen possible for Apple to grow in the market they are in, as they are already dominant. Eventually, the experts will be right – no company lives forever. Before burying Apple it is worth understanding a key element of their strategy:

Starfish Model

The starfish business model:

Some of the most successful companies of the current age do not create or own their own products or services. Uber does not own taxi’s, AirBNB doesn't have hotel rooms, Facebook does not create content and Alibaba does not have inventory. These new companies are connectors rather than asset owners. They connect suppliers with users and customers in creative ways that prey on old markets and business models based on manufacturing, asset ownership and competition.

Starfish activity

Companies using the starfish business model can compete if the want to but the primary objective is to connect. Connect users with suppliers, customers with advertisers and connect the starfish to other starfish. Sometimes connecting means competing, other times it means collaborating, killing, cannibalising or whatever is needed to create more connections. Starfish business models hav the potential for exponential growth as the deploying company is not limited by its capability to create or manufacture new products. Where traditional asset owning companies are looking for double-digit growth a year, starfish business models can deliver double-digit growth a week

Exponential growth requires a starfish business model

The first starfish – Apple reborn

When Jobs came back to Apple in 1996, they were in poor shape. Having been run as a traditional company for a few years, they had starved of much of what made them great. Jobs together with John Ive created the new iMac product line that gave them much needed profit to save the company.

In 2001 the Ipod was launched into an already crowded MP3 player market. Although a beautifully designed product with great user experience, nobody saw this as the beginning of world domination for Apple. In 2003 Apple launched their first attempt at world domination, their first starfish business model:

The Itunes store.

Selling individual tunes for 0.99$ it completely redefined the music industry by connecting artist with users bypassing the expensive middle-men. Although a relatively simple model, it gave Apple a formidable weapon: Users that were willing to give Apple their credit card number. Later it expanded to other media types. The total number of credit cards is now approaching 1B leaving everybody else in the dirt. This was the foundation for what was to come.

Apple credit cards

The second starfish – The first universal platform

In 2007, the iPhone was unleashed on an unsuspecting cellphone industry. Although innovative in design, it did not introduce anything that Nokia and colleagues would not have been able to deploy themselves. A massive hit, the Apple sold 1 million "Jesus phones" in 74 days. The cellphone industry saw this as a fashion for a few people. They did not fear Apple's entrance as they knew how to make better connections, better sound and better battery life. The industry was not destroyed by the iPhone, however – it was destroyed by the app store:

The Itunes store

Selling individual tunes for 0.99$ it completely redefined the music industry by connecting artists with users bypassing the expensive middle-men. Although a relatively simple model, it gave Apple a formidable weapon: Users that were willing to give Apple their credit card number. Later it expanded to other media types. The total number of credit cards is now approaching 1B leaving everybody else in the dirt. This was the foundation for what was to come.

 

Available_on_the_App_Store_(black)

The Appstore

The App Store converted your phone to a platform. It was now a computer system in your pocket where you could buy and execute programs without visiting a store and Apple already had your customer details and your credit card number. The apps themselves were small starfish business models. They could connect users to suppliers in an easy way and allowed for business models based on advertising and search. As everybody now knows, the growth has been explosive and the platforms has developed tremendously since then, destroying other industries.

The Apple iPhone and later the iPad is what have brought Apple to where they are today: The most profitable company in the world, dominating the markets they are in, with nowhere to go. This is where Steve Jobs would say:

Just one more thing: The 3rd Starfish

The 3rd starfish

Without too much fanfare the new Apple TV has been launched. Critics says it isn’t new nor is it very impressive. What most are missing is that the new Apple TV is just a kid – not a grownup yet. It is also the foundation for the third starfish business model that potentially can dominate not only the TV but also the entire movie and media industry. Soon we will not need fancy smart TV’s from Samsung – just a simple basic flat screen will do. We will not need to buy expensive cable subscriptions anymore as we can buy programs individually. We have invited Siri into our living room so we don't need Google anymore.

Apple has unleashed their death star on Google: Siri

The age of Siri

Born out of SRI International, a non-profit organisation founded in 2008 to create a new way to interact with your cell phone. By 2010 SRI was part of Apple and Siri was integrated into iPhone 4S. Obsessed with the user experience, Steve Jobs wanted SRI to permeate Apple, not the other way around, tells Adam Cheyer, one of the founders of SRI.

Siri is the battle of the future. When the iPhone is gone, Siri will still be here. When hardware is invisible - we can still talk to Siri. Apple keep acquiring companies in this field: Machine learning, Augmented reality and speech recognition are focus technologies.

Getting Siri into the living room is a major threat to Google. Apple has already stated that Siri will not favour Apple content over others. That does not mean that Siri will not favour advertisers or other companies buying influence. What restaurant will Siri recommend? What product?

The 4th starfish – The car

With Siri in our living room, we see the glimpse of the 4th starfish. Rumors about the Apple car has the entire car industry running around telling us Apple will never be able to win. They do not have the knowledge or the manufacturing capacity to compete in the car industry. Maybe they are right – maybe Apple don’t want to dominate the car industry. Maybe they just want an extra passenger in your car: Siri.

Siri is already on you computer, in your phone and in your home. When Siri takes a seat in your, car Apple will control a significant proportion of the global search and the associated revenue. The interesting question will be how to advertise on an automated assistant? How do you motivate a robot to promote your products?

Apple is still a starfish or two away from extinction

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Create a frame of truth with your employees.

Undeserved praise is damaging – both for the company and the employee. On the other hand, nobody has ever become better by being told they were bad. It is your job as a leader to create a safe frame for open and honest feedback in the spirit of learning and improving. Don’t judge your people or categorise them. Be curiuos and explore their unused talents. Don’t worry about what they are, only on what they can become.

Fear of knowledge

One of Freud’s most important findings was that humans have a subconscious fear of knowing their true self as this can attack the ego. At the same time, it is very important for people to understand themselves. This is another paradox of the psyche.

Worms and Gods. Maslow’s paradox

We carry both the potential for greatness and the fear of greatness in us. This paradox is what keeps us from growth, meaning and happiness. Even though you don’t think about it consciously, it registers subconsciously. You will feel unfulfilled and empty until you start growing towards your potential

The Victim Owner Choice


Owner Thumb

How you engage with problems and challenges will determine if your behaviour is victimised. Victim behaviour is a choice – a choice with dire consequences. Victims end up as unhappy, unfulfilled people that doesn’t grow. Choose to be an owner and start your journey towards growth, meaning and happiness.

The Engagement Scale

Spiritual nologo

How you Engage with work is often how you Engage with life. Use this scale to identify your relationship with your work or your life. The higher you engage the more you will fell fulfilled and happy – the choice is yours.

Engaged employees are not looking for an easy life

EG Diamonds

The biggest problem in our time: Companies are desperately trying to get their people to contribute more at the same time as people are desperate to get a bigger challenge. To have a meaningful work-life people need to do something with purpose, that makes them grow and make them part of something bigger than themselves. When you create meaningful work, you get better results and get happier and fulfilled employees.

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Outcome is not income.

Outcome

When you move your attention to the outcome of an activity – often revenue and profit, you risk spending less time on what creates your outcome. People failing to deliver to expectations are not necessarily bad people. It could be wrong expectations, bad systems or external problems that have caused the difference. Spending time on the outcome rarely creates income. Don’t beat people up with data – share it instead.

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Thinking that you need to balance work and life will rob you of a quarter of your life.

It is time to humanise work. People have moved from standing at the conveyor belt to be on the conveyer belt. Companies treat people like a resource that need to be treated in a uniform way: “We have rules”. Being treated like a human is being treated as an individual, not a number. Companies that treat people like humans, involves them and challenges them owns the future.

A dead battery cannot jumpstart another

The benefits of Employee Engagement

As the evidence of the positive financial impact of Employee Engagement is becoming evident, CEO’s are increasingly looking to gain competitive advantage through Engagement. The yearly satisfaction survey has not produced actionable output and is used as an excuse for preserving status quo.

The view of people as resources and HR as the factory that processes them, makes it logical to assume that if we don’t have Engaged Employees, then let’s go and recruit some Engaged people.

 

About Engagement

The assumption that people are either engaged or not, changed the recruitment processes to one of identifying ”highly engaged individuals” and recruiting them. Unfortunately employee engagement is not a characteristic of the employee, it is the strength of the emotional relationship the employee has to one or more actors. This moves the responsibility for engagement from the employee firmly back to the company. If the company accepts this responsibility significant productivity gains are within reach.

 

The engine of engagement

Many studies have investigated the different drivers of engagement and always the direct manager comes out on top. 70% of the variance in Gallup’s surveys is down to the direct manager. Even in companies that have greedy top managers, a pure exploitation purpose and poor reputation you still have people staying as their direct manager shields them from the corporate evil. The direct manager is responsible for creating a reality for the employees that make them part of something worthwhile and noble and create an environment where they are allowed to participate and grow.

 

The engaged manager

There are many strategies and behaviours that a manager can use to create engagement, many of them are centred on how you treat, involve and inspire people and if you behave fairly to others. As engagement is an emotional and relational concept it is very difficult to measure. However Gallup uncovered that Engaged managers had a much higher degree of engaged employees – employees working for an Engaged manager is 59% more likely to be engaged.

 

Are managers engaged?

That an engaged manager creates engaged employees are not a surprise – the number of engaged managers are. Gallup found that only 35% of managers were engaged, this is still significantly higher than the worldwide average of 13% engaged employees and slightly above the US average of 30%. 14% of all managers are actively disengaged.

Although there are both great female and male leaders, Gallup’s research showed that female leaders were more likely to be engaged (41% vs 35%) and their employees were more likely to be engaged.

 

 

What about your managers?

The focus of most leadership development is to give the leaders tools to manage their people rather than engage them. What is often forgotten is the process of Engaging the manager, not just developing their leadership skills. How Engaged are your managers? When is sufficient not sufficient anymore?

 

"Only 35% of Managers are Engaged" Gallup

 

 

 

 

 

 

"70% of Engagement variance is down to the manager" Gallup

 

 

 

"Employees working for an Engaged manager is 59% more likely to be engaged" Gallup

5 Signs your people are looking for a new job

Does your latest satisfaction survey look fine? Do you have 80% satisfied employees, as usual? Then you probably don’t need to do anything – as usual. Before you proudly present the numbers on your “We value our people” slide it is worth understanding that all your competitors have the same satisfaction levels, making it irrelevant from a competitive perspective. The problem with satisfied employees is that they are not necessarily motivated employees and even if they believe that they have a fair deal they could still be longing for something else.

 

LinkedIn knows your people are looking

With 313m members LinkedIn has taken over the role of the most important job fair in the history, 60% of LinkedIn’s 534M$ revenue comes from recruiters. With a 25B$ market valuation some analysts are betting that they also will have a bright future.

In a recent comment in the Economist, Dan Shapero, head of sales in the firm’s talent-solutions business shared that 25% of the LinkedIn members are actively looking for a new job and an additional 35% are considered passive job seekers. This leaves only 40% of the members motivated sufficient to stay with their current employer.

 

Are 60% of your employees ready to leave?

A satisfaction survey is not able to uncover if employees are motivated or if they are contributing, but it has been used to predict retention level in companies – up until now.

HBR has identified the 5 signs people should be looking for to judge if the time is right for a new job

These issues are not easily caught by a satisfaction survey: If you are paid enough you might accept that you are undervalued and hate your boss. You could also be satisfied that nobody is kicking you out as a result of you under performing and that you are able to avoid learning.

 

The signs you are ready to leave your job:

  • You are not learning.

  • You are under performing.

  • You feel undervalued.

  • You are just doing it for the money.

  • You hate your boss.

How to uncover these issues

The signs could very well be a symptom of low engagement

A well designed Engagement survey has a high probability of being able to uncover these issues and identify the causes. There are 6 main drivers of engagement that needs to be covered in a survey combined with employee meetings. The signs and the corresponding engagement driver can be seen below.

An Engagement survey can not only help you uncover some of these issues, but also help you understand what will motivate your employees and make them want to perform and grow. As Gallup have shown there are significant differences in performance between highly engaged work forces and the opposite.   

The signs and Engagement Category

  • You are not learning. (Growth)
  • You are under performing. (Purpose, Growth)
  • You feel undervalued. (Identity)
  • You are just doing it for the money. (Purpose, Identity, Fairness)
  • You hate your boss. (Leadership, Culture)