A question about experimentation
Posted by Brent Dixon on August 8th, 2007
In a 2007 session at ad:tech NY, Coca-Cola’s Director of Global Interactive Marketing John Stichweh said any company not devoting 10% of its marketing budget to experimentation will fall behind.
There was an SNL skit where Will Ferrell, as Harry Caray, interviewed Jeff Goldbloom, who was playing an astrophysicist. There was a snippet of dialogue that went something like this:
Harry Caray: Hey! What about this?! If you had a choice between being the top scientist in your field or getting Mad Cow Disease, what would it be?
Jeff Goldbloom, Astrophysicist: Well of course I would choose to be the top scientist in my field.
Harry Caray: Oh good! I was worried you’d choose Mad Cow!
Anybody presented the choice between “being innovative” and “being stagnant” would choose innovative. Right? I hope?
So how does your credit union manage experimentation? Do you?
Do any of you have a formalized chunk of your budget allotted for it? Do you play it by ear, perhaps experimenting if a new idea falls under your radar? Do you limit your resources to the “Old Faithfuls” – traditional tactics you know have worked historically, and do not give your board heartburn?
On a larger scale, how can we better manage collaborative experimentation as an industry?
This week, Filene is hosting a colloquium on credit union collaboration. Can’t make it but have a discussion point? Click the link and leave a comment in their blog post with your topic. They’re recording and publishing the discussions from the event later this year (or in early 08), for your consumption and pleasure.
So how does successful experimentation happen within a credit union and within the industry?
Blue Oceans
Brent,
Too often I hear innovative ideas (and not just my own) met with “Do you know any other credit union who has done it? How did it work for them?” and if your answer is in the negative – then kiss that baby goodbye.
The problem with that logic is that each community is different. What works for your credit union might not work for another and vice versa. So instead of sailing charted waters, try to reach out a little. Try some new things. Look around and smell the air. The path less traveled may make all the difference.
@ Tony – Wow, your words rang so true, I blurted out a laugh when I read your comment.
The practice of budgeting and planning for “R&D” is missing as a whole in credit union land. I just presented at the National Director’s Conference on the need for risk taking and “R&D”. I believe there are two hurdles credit unions need to get over to begin creating a business case for risk taking. First, the structure – member owned. Credit union’s hide behind the notion that our members don’t want us to devote money to R&D. I am not so sure about this. Yes, they want to maximize their financial return with higher savings rates and lower loan rates, but I would argue they also want new products, services and would be appreciative of new ways to serve them. Without “R&D” credit unions are solely focusing on today’s members. What about tomorrow’s members? Second, the Board and management team relation. Many credit unions haven’t worked on this relationship in the view of creating an environment to “R&D” and take risks through experimentation of new products and services. This should be job one – create an environment where your talented credit union teammates can innovate.
One other observation in credit union land – too much peer analysis and comparison. Not enough looking outside the industry and even outside financial services for some inspiration.
First, of all, Brent, that SNL skit is my 2nd all-time favorite. The first being ‘we need more cow bell’.
A few observations:
@ Doug…Even dinosaurs had a peer group. (this quote attributed to a very smart credit union CEO)
Quick prototyping and testing is needed to create the R&D mindset. Create, test, fail, learn, rinse, repeat.
Filene is starting the conversation around innovation, but is by no means the only voice…we need more !!!
Our colloquium went quite well last week in Philadelphia…I’m updating the Filene site today regarding what we discovered about collaboration strategies.
Thanks for the thought-provoking post Brent.
Thanks for posting this Brent. Innovation and experimenting takes courage and effort. A friend of mine pointed me towards a manifesto by Matthew E. May. Go to changethis.com. Download the “Mind of the Innovator: Taming the Traps of Traditional Thinking” PDF. This one’s worth the read.