Showing posts with label communication channel. Show all posts
Showing posts with label communication channel. Show all posts

Tuesday, May 1, 2007

The Curse of Knowledge


In 1990, a Stanford University graduate student in psychology named Elizabeth Newton illustrated the curse of knowledge by exploring a simple game in which she assigned people to one of two roles: "tapper" or "listener". Each tapper was asked to pick up a well-known song, such as 'Happy Birthday", and tap out the rhythm on a table. The listener's job was to guess the song.

Over the course of Newton's experiment, 120 songs were tapped out. Listeners guessed only three of the songs correctly: a success ratio of 2.5%. But before they guessed, Newton asked the tappers to predict the probability that listeners would guess correctly. They predicted 50%. The tappers got their message across one time in 40, but they thought they would get it across one time in two. Why?
When a tapper taps, it is impossible for her to avoid hearing the tune playing along to her taps. Meanwhile, all the listener can hear is a kind of bizarre Morse code. Yet the tappers were flabbergasted by how hard the listeners had to work to pick up the tune.
The problem is that once we know something - say, the melody of a song - we find it hard to imagine not knowing it. Our knowledge has "cursed" us. We have difficulty sharing it with others, because we can't readily re-create their state of mind.
In the business world, we all rely on ongoing communication but suffer from enormous information imbalances, just like the tappers and listeners.
As business people, we need to translate our strategies into concrete language. It's not about mission statements, corporate philosophies.
It's about stories that connect with your clients, co-workers and employees.
These stories need to support your mission statement, your vision. But don't let the vision stand on its own. Unless you're happy with a 2.5% success ratio.

Thursday, March 29, 2007

Not just another channel


Frankly, I'm baffled that most brands/businesses jsut look at the Internet as another communication channel instead of embracing this opportunity and rethink their business model.
Too many brands see the Internet as an opportunity to optimize their CRM programs, get better consumer insight or more efficient marketing. That's not going to take you far because the Internet changes the core of each and every business.
You can think short-term by defending your turf and fighting to keep your current positioning (and budgets...). Or can think about the Web as the core of your business.
Paul Graham describes it better than I could:

“The Web naturally has a certain grain, and Google is aligned with it. That’s why their success seems so effortless. They’re sailing with the wind, instead of sitting becalmed praying for a business model, like the print media, or trying to tack upwind by suing their customers, like Microsoft and the record labels. Google doesn’t try to force things to happen their way. They try to figure out what’s going to happen, and arrange to be standing there when it does.”

Change is happening while the majority of business tries to stem the tide. They have no chance.