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“What is a snake doing in businessgyan?” Was that your reaction? Just what a predator might think when it sees the ‘hawk mouth caterpillar’ and keeps off. By deception, this species of moth survives the threat from birds, wasps and other creatures, which are after its life.
Nature teaches us that it is the design, the look, and the structure of the creature, which determines its ultimate survival in its environment. The importance of design as a management tool was driven home to me when I read about some airports in former Soviet Union. These airports had folding chairs in their waiting area; they were arranged neatly in rows. Typically, what happened was that passengers moved these chairs to form clusters to accommodate friends? The armless chairs were found to be useful as beds for sleepy children or handy surfaces for dinning and playing cards. Children rearranged chairs to build interesting play structures. One can just picture the commotion, the noise and the disorder in the airport and consequently the dismayed and harassed airport staff. The airport authorities took action, they put up signs asking passengers not to move the chairs, stern announcements were made to put the chairs back in place and security personnel on patrol occasionally enforced these policies. But the pandemonium continued. One explanation that one could easily jump to is that passengers should be more civic conscious, one should discipline passengers to behave. But one look at the design of a typical modern airport will tell us why the answer is in another direction. Seats in a modern airport are designed so that they cannot be moved. They are arranged so that one can have a conversation only with those in the immediate vicinity. Fixed armrests between seats prevent people from lying down. There is now no more need for announcements, signs and security staff to make passengers behave. By the invisible hand of design all the pandemonium has vanished. Richard T. Pascale the author of the book “Surfing the Edge of Chaos” says that “ The remarkable quality of design is that it seems to just happen; it works its magic without our awareness of how it does so.” We see similar design solutions all around us. Spitting, in building corridors and staircases, prevented by putting pictures of Gods at strategic points. Making drivers stay in the proper lane by having road dividers and so on. The popular ice cream cone in-fact was invented to reduce the litter in beaches; with the ice cream cone people could “eat the ice cream cup instead of littering the beaches with paper cups.” It is much easier to get the desired result by design than trying to change habits, perceptions or behavior of people. The latter requires social engineering, which essentially means rewards and punishments, not a very pleasant way of going about things and not always feasible. Typically when sales are down, when people are not motivated, or any such issue, one hears commands, pleas and comments like “One must work hard.” “We should take action on them.” “We need to do it better.” This is not to say that in lot of situations the above statements might actually be relevant and what in fact is needed is “more action” and “execution”. However one consciously needs to pause and think if there is a better design. A wheel instead of legs so to say. There is a time for execution and there is an even more important time for design. When a lot of time, effort and money is being spent on an activity, and still one is not getting the results it is definitely time to examine the design. The way business is designed, the way people have been allocated tasks, the type of people allotted for a job…. In fact all those aspects that have a “structural” bearing on the way a service is given to customers or the way an activity is carried out need to be examined closely. One popular example, which illustrates the disparity in the final outcome to the difference in initial design, is the Microsoft – Apple story. Apple had a strategy of selling an “Apple computer” that is the whole computer, the hardware and software to the final consumers. Microsoft on the other hand licensed its operating system to computer manufacturers around the world, thus a lot more computers started having Microsoft’s operating systems. This resulted in MSDOS, and later Windows becoming the default standard operating system for PCs. Initial design of the business idea has a lot to do with the ultimate success, perhaps more than all the hard work, motivation and brilliance which might come in later. Look around and we see that momentous success in business has come because of design, FedEx’s “Hub and Spoke” design in logistics, Dell’s direct to customer model in Computers, Amul’s low price model backed by its cooperative sourcing model in Milk Products, Pizza’s and Softies. Flexi Timing is a design solution to the need of employees to have a work-life balance. Contract employees or consultants, is a design solution for talented professionals who cannot get enough work satisfaction from assignments in just one firm. Accountability to the local population or to the taxpayer could be a design solution for productivity in government bodies and officials. Customer satisfaction ratings between departments, linked to compensation, could be a design solution for enhancing productivity of support functions in large organisations. Having an organisation structure of many teams of 5-10 with well-defined objectives could be a design solution for enhancing involvement and a sense of belongingness among employees. Design is a panacea for a lot of business and social problems. Once the design is correct, hard work and money will make the business a “natural” success. (The Author is Balaji Pasumarthy the Chief Catalyst of businessgyan, his areas of interest are business strategy and innovation. For feedback and more information send mail to
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) Issue BG17 Aug02
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