The KISS Principle: From Innovation to Communication

Written by Dora Cheatham, Program Manager, Emerging Enterprise Center

KISS – alternately known “keep it simple, stupid”, “keep it short and simple” and “keep it simple and straightforward” – is an acronym reportedly coined by Kelly Johnson in the early 20th century, a lead engineer at Lockheed Skunk Works who created the Lockheed US and SR-71 Blackbird spy planes. It’s also a design principle noted by the US Navy in 1960 believing that most systems work best when you avoid unnecessary complexity.

The concept is nothing new and has been embraced by innovators throughout the centuries, from Leonardo da Vinci “Simplicity is the ultimate sophistication” to Steve Jobs “That’s been one of my mantras – focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”

Lean and Six Sigma were both based on the simplification and optimization of processes to increase productivity and reduce the potential for error. Alan Turing – considered the father of computing and artificial intelligence – built the stunningly simple Turing Machine which is today the basis of all modern computers. The same applies in the business world. Whether it’s a go-to-market plan, the design of a new process, or implementing cultural change the key to success is simplicity.

By simplifying and communicating sometimes complex organizational strategies and discussions, it makes them accessible to the entire organization which in turn enables the entire organization to embrace them. So the concept of QA in manufacturing can be viewed less as a system of forms and check marks and more as a fundamental belief in manufacturing products of the highest quality possible. Innovation can be viewed less as a function of R&D or Engineering, divorced from the rest of the organization, and more an overriding vision that is integrated into the mainstream of the organization, engendering commitment at all levels.

Similarly, the communication of complex, technical products needs to be broken down into language understood by anyone involved in the purchase process, with clear explanations of the pros and cons surrounding their purchase decision and based on trustworthy information. Too often, marketing of complex products – especially at a B2B level – is communicated in language and concepts which may hold great value to some in the decision making process, but may hold little value to others. Ensure that the communication is clear enough to be understand by all involved in the purchasing decision.

In their excellent article published in Harvard Business Review, Patrick Spenner and Karen Freeman discussed their findings after a 3-month long study on what drives consumers to opt for, or stick with, a specific brand. They found that “the single biggest driver of stickiness, by far, was “decision simplicity” – the ease with which consumers can gather trustworthy information about a product confidently and efficiently weigh their purchase options. What consumers want from marketers is, simply, simplicity.”

So how do you go about simplifying communication? The steps are simple (pun intended):

DECONSTRUCT: Break down the idea to its basic elements.

SIMPLIFY: Simplify the premise by taking out excess information that does not directly contribute to the value expected by the end user(s).

RECONSTRUCT: Reconstruct by focusing strictly on the value, bearing in mind that value may represent different things to the various members of your audience.

COMMUNICATE: Communicate in a language that is accessible to a wider audience. Use clear language, avoid the use of jargon and acronyms that only a limited audience would understand.

I’ll leave the final word to that great genius Einstein:

“If you can’t explain it to a six year old, you don’t understand it yourself.”

Marketing for Small Businesses – 3 Steps to Success

Written by Dora Cheatham, Program Manager, Emerging Enterprise Center

We often hear of the failure rates of start-ups and new businesses, or even longer term firms going out of business for one reason or another.The US Census Bureau’s statistics certainly bear this out, with as many as 44% of businesses failing by their 3rd year and 71% failing by Year 10.

While this depends greatly on the industry, the chart below from Statistic Brain, shows just how fragile some industries can be:

While the final cause of death is usually financial collapse, the symptoms most likely started much earlier with failed strategies and operational inefficiencies. While no-one has a crystal ball into the future, you can certainly try to preempt as many obstacles as possible with careful planning and preparation; as Alan Lakein once said “failing to plan, is planning to fail”.

So if you’re thinking of starting your own business, or you’re beginning to see fissures in your business, there are definitely steps you can take ahead of time. Here are a few from a marketing perspective to ensure that your business survives and succeeds.

  1. MARKET ANALYSIS │ THE LAY OF THE LAND

Understanding the lay of the land is critical in helping you determine what actions you will need to take to grow—or in some cases—survive. An excellent tool for establishing the lay of the land is Michael Porter’s Five Forces Model. This popular model forces you to look at your industry within a specific framework that takes into consideration competition between existing firms, the threat of new entrants, the strength of buyers and suppliers and the threat of substitute products. Another simple but frequently used framework: the SWOT analysis that assesses strengths, weaknesses, opportunities and threats—use it to assess not only your own business but also that of your competition.

How do you fit in these frameworks? What are your core competences? What are your weaknesses? How can you leverage your strengths and improve on your weaknesses? It’s not enough to know and believe in your own product: you need to understand how it fits within the industry and among other like products in that industry. You also need to have a clear understanding of your customers’ (existing and/or potential) needs and wants.

But don’t be fooled into thinking that this is a one time exercise—external forces and world events can impact the lay of the land, change the balance of power in these forces and overturn the positions in these frameworks within a matter of weeks! A catastrophic event – think 9/11 and its impact not only on the aviation industry but also the industry’s suppliers, travel, tourism and beyond – can and will result in a need to re-assess your business strategy in short order.  

  1. MARKET STRATEGY │ START WITH THE END IN SIGHT

Once you have a clear understanding of the lay of the land, the business then needs to determine its focus: What is your differential advantage or value proposition as a business? What are your growth objectives? Which products and markets offer the best opportunities to achieve your growth objectives? How will you achieve these objectives? Will it be through market penetration? Product development? Market development? Diversification? How will you position the business and your products to meet these objectives? Which core competences do you need to develop to achieve your targeted growth and create a sustainable competitive advantage? What will the investment be in time, talent and treasure to develop these core competences and what will your return on that investment be? 

  1. MARKETING MIX │ THE ROAD MAP

The Marketing Mix is generally referred to as the 4Ps (or 5Ps depending on the source!) and encompasses decisions surrounding your Products (performance, features, design, presentations, name, etc), Pricing (direct, distributor, geographical, etc), Promotion (PR, marketing collateral, advertising), Place (distribution channels), and People (tasks, sales, support). In other words, you know your market and you know your customers. You now need to ensure that you have the correct products, that they are correctly positioned and that your communications correctly reflect that positioning. Do you have the right distribution channels set up? Do you have effective and efficient processes in place?

A common fallacy to avoid is that marketing is the same as sales, particularly on a B2B level. The two are very different and – while they work hand in hand – they perform different functions. Marketing creates the value, the visibility and the lead; it can also provide the tools to make the sales process more effective, but it is an ongoing process and does not preclude the need for a sales strategy to leverage and capitalize on the value created through the marketing process (check out the posts on Creating & Selling Value and What’s In A Brand?).

 

STRATEGY X EXECUTION = SUCCESS

As I’ve mentioned in previous posts, it’s not just about the strategy but about implementation and execution of that strategy. Once the lay of the land and the road map have been laid out, specific tactical and action plans, budgets and measurement criteria can be put into place to guide that execution and implementation. One of my favorite quotes is from the entrepreneur Naveen Jain. “A great strategy alone won’t win a game or battle; the win comes from basic blocking and tackling.”