Path Dependence

Habits – Path Dependence – 2

competition, differentiation, differentiation, ideal customer, Marketing, segmentation, single target market

In my earlier post I wrote about why Path Dependence can be a big barrier to success. The reason this is important when we look at Marketing and Product Marketing is that the market and the competitors are always changing. The customers change, the way they like to interact with suppliers changes, their priorities change. The way your competition reacts to these changes with their offerings and how you react all need to keep up with these changes

So the solutions which helped you become successful previously may not make you successful now. It happens to me all the time. Whenever I keep trying to use the same old data points, the same old methods and things don’t work I have to start going down to basics.

Habits are good , as I have said multiple times before, because they help cut out the energy requirements from our life , but the same habits become a baggage when you have to change to meet new scenarios. Habits work on path dependence.

While the basics of targeting a single target market, differentiation , segmentation, all remain as is, what changes is the way you address a customer. There was a time when you reached out on the phone to people. Then people. got Caller id phones and if they didn’t recognise your number you got diverted to voice mail. Then came email. But if you were still stuck on phone as primary method of prospecting and didn’t adapt to email prospecting you would be long gone.

So while habits are good, energy & time efficient, sometimes when things are not working out you need to look at another path to see if it can take you to your destination.

If you look at India’s history as an analogy, one of the reasons that they were able to conquer our country and rule it for almost 150 years was because they came with guns, while the Indian kings at that time, still had their armies using swords and spears.

In marketing if you don’t carry the ability to go back to basics to figure out what is causing your team to fail, then you won’t last long. Sometimes you have to change the teams just for this reason, because if they are not willing to change, you have just two options – either die a slow death or change the team and live to fight another day.

Till next time then, don’t let path dependence stop. you from exploring new solutions.

Carpe Diem!!!

Habits – Path Dependence

Brain size, creativity, Energy, Habits, Human Brain, Uncategorized

I have generally been talking about how the human brain eats 25% of the energy that a body needs even though it is only 2% of the body mass. This is one of the reasons for procrastination in my opinion because the brain wants to conserve energy and by delaying the process of using the brain it’s able to save energy.

Since motivation is something which is fickle, you would rather convert something into a habit, so that it gets done automatically with a predetermined set of steps – something which B.J.Fogg explains very well in his book Tiny Habits.

Now the challenge with habits is that once formed, they are difficult to dislodge. So you become – literally a creature of habit. The human brain loves habits because they run on auto pilot, and don’t consume too much of energy. Since one of the key functions of the brain is to ensure your survival, the brain loves everything that does not consume energy so that it has enough when it has to figure out ways to survive.

With habits though you always follow a predetermined “path”.

However with changing situations in all our lives, you need to find ways to move away from the so called “beaten path” What made you successful then, will not make you successful in the future. Nokia realised it too late, Kodak realised it too late and there are a whole lot of other names that you can list. All these companies had put up terrific systems (equivalent of habits) to ensure economies, to ensure quality etc.

But the same systems got them blindsided.

Companies are also made up of people and when companies get blind sided, its the people who have actually got blindsided because they have become creatures of habit. To solve a new problem they use the same old tools, the same old sources of data which they have used earlier. But since the problem is new, the old tools don’t work and we are not willing to go back to first principles to solve the problem. Sometimes it pressure of time, sometimes revenue takes precedence and there are a whole lot of other reasons.

So the key thing to figure out is when to use creativity and when to go with something which has already proven useful many times before. When do you travel on the well tread path or choose a different road when you hit a fork.

As team leaders this is a problem which we face all the time and finding better ways to solve a problem is something that I am continuously looking out for. If you have found a way which helped you to creatively solve a problem pls let me know below in the comments.

Till next time then.

Carpe Diem!!!