CMR as a Precursor of VRM

May 28, 2009

Vendor Relationship Management (VRM) is a term used by Doc Searls and other members of ProjectVRM to distinguish market relationships between vendors and consumers where the latter gain increased control over that commercial relationship. Building on the VRM concept, Jeremiah Owyang recently noted that VRM offers a potential future for public relations agencies in which the future of PR is in representing communities rather than brands. As Doc recently declared,

We therefore resolve to avoid all relationships in which the privileges of loyalty are determined entirely by the seller, and to construct new terms and means of engagement that will work in mutually constructive ways for both customers and sellers, for the good of all.

 So, in the spirit of the Declaration of Customer Independence recently outlined by Doc, I offer the following turn of the century anecdote for thinking about Customer Managed Relationships (CMR).

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Social Business, the Golden Rule, and Open Empathy Organization

May 20, 2009

empathyI first took real notice of the term “social business” in a post early this year over at Peter Kim‘s blog. The concept of social business is not limited to those enterprises seeking to “generate social improvements and serve a broader human development purpose,” though these are certainly admirable goals. Rather, social business is increasingly discussed as a frame of analysis for considering the business implications of  large numbers of people using web 2.0 technologies, especially social media, within corporate enterprises as employees, or outside them as customers.

Channels, policies, processes, touch points and transactions are increasingly viewed as parts of the social experience organizations use to engage employees in collaboration, and customers in conversation. The common goal of the discussion involves transforming business practices to incorporate social relationships into the value proposition to customers and other stakeholders.

My recent reading of Wired to Care by Dev Patnaik (with Peter Mortensen) provided some basic insights for me in thinking about the development of social business practices. I highly recommend it to anyone with an interest in the intersection of experience design and organization. The book explores the concept of empathy in a manner that speaks to the social business discussion by pointing out that the result of a transformation is more than adoption of new technologies such as social media.

Wired to Care offers an approach to organizing business as well as creating design insights on how to engage customers to improve products and services. One of my earliest posts on Skilful Minds, Break the Golden Rule with Customer Dialogue Support, offered the following observation,

Many “customer care” approaches call for treating customers the way you’d like to be treated—the so-called Golden Rule. Treating customers the way we, as service providers want to be treated implies that we inherently know what’s best for them. A customer dialogue approach alternatively assumes that customers know, or can quickly learn, what’s best for them as individual customers. We need to treat customers the way their actions indicate they want, not the way we would want to be treated as a customer.

Reading Wired to Care persuaded me that my previous point only moved the discussion a part of the way to an understanding of the nuances of the Golden Rule for business. Wired to Care offers an interesting point of view on the limitations inherent in the traditional understanding of the Golden Rule, while contending that a full appreciation of it reveals truths about us as individuals, and our relationship to organizations, whether as employees or customers. It outlines three levels of the Golden Rule:

  1. “Do unto others as you would have them do unto you” — the most basic level with limited efficacy unless people share the same view of the world
  2. “Do unto others as they would have done to them” — requires increased empathy to distinguish the wants and needs of individuals
  3. “Do unto each other as we would have done unto us” — provides for empathy by focusing on “how we’d all like to be treated, inside the company and out,” yet also recognizes that good business practice might additionally require treating people “better than they expect to be treated”

Dev contends that the third level of the Golden Rule provides a basis for integrating empathy into the everyday practices of organizations. Though he does not use the term social business, Dev’s analysis offers a foundational strategy for implementing social business through the concept of an Open Empathy Organization.

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