Have you ever asked a question only to receive the dreaded, “Because I said so,” response? This is often a phrase repeated to children, but even adults are prone to hear things like, “Because this is the way we’ve always done it.” If you’ve been on the receiving end of these statements, you know that they are never satisfactory explanations to questions. They’re a cop out—a way to evade the underlying issues and, perhaps, an unintentional admission of one’s fear of change or refusal to embrace innovation. And, that is exactly how we get stuck in patterns that don’t work within systems that are unwilling to adopt new structural paradigms—even when it’s the obvious answer.
Many people, myself included, have been writing on this topic for 5-10 years—reiterating time and again that our economy is dramatically changing and many analysts are ignoring the consequences. What is even more perplexing is that we continue to ignore some proven models of success.Several years ago, Walter Isaacson wrote in The Innovators about the impact of technology, the digital computer, and Internet revolution. These trends have only accelerated in recent years. One of the most interesting themes is the commitment, diversity, collaboration, and even friction, among diverse participants in almost every phase of the revolution, such as Jobs and Wozniak or Gates and Allen.
The results of this technological shift are evident in a comparison of stock performance of traditional companies versus newer tech companies. The stocks of P&G, I.B.M., G.E., Coca Cola, Dupont, and AT&T have DECLINED an average of 8% annually over the last 5 years. In contrast, the price growth of companies like Google, Facebook, Apple, and Amazon has increased at a rate of 24% annually. This trend is also evidenced by G.E. and other huge companies’ recent decision to dissolve their outdated structure.
To put that in perspective: investing $100,000 in the traditional companies 5 years ago, would be worth about $66,000 today. Investing $100,000 in the tech companies 5 years ago would be worth about $300,000 today.
Financial advisors also seem to be reluctant to embrace this shift. For example, much of their discussions focus on bonds versus stocks rather than tech stocks versus industrial or value stocks.
It’s really no surprise that so many businesses are failing considering both society and business refuse to recognize that old paradigms and structures are already obsolete or are well on their way. For example:
Large corporate structures (like print publications and brick and mortar retailers) are all gradual losers, or worse.
Companies as well as society continue to do what they have done in the past, often with poor results. Despite massive economic and political efforts, issues like income inequality, healthcare, and infrastructure investment will continue to hold back our economy.
With little real attention to these changing trends, the poor performance of many organizations is virtually a given.
Even more distressing is that it’s the structural paradigms of these organizations producing much of the deficient results, rather than the typical financial discussions. For instance, the long-held propositions that business advantages, like economies of scale and utilizing expertise and marketing synergies, are simply false in many cases. Rather, these and other former industry leaders are failing because of the following limitations:
Many large companies have tunnel vision, organizational constraints, etc., and ignore emerging technologies and opportunities.
They lack the flexibility to respond to the needs of the market and use outdated solutions to new problems.
They fail to allow the vision, entrepreneurship, and risk necessary to succeed, while heaping huge income growth on unproductive leaders.
In contrast, new structural paradigms are providing numerous opportunities for successful change:
The success of smaller, more innovative companies shows that many organizations should get smaller (or act smaller) in order to effectively deal with today’s environment.
Reducing layers and creating professional cultures are a start. Boards and management need to split up organizations like G.E., create spinoffs, or implement more independent groups. That may be what’s really necessary to maximize the potential of both individuals and organizations.
Large organizations say they want excellence, entrepreneurship, innovation, risk-takers, etc., but, really, they tend to encourage mediocrity. For example, short-term goals and reviews for both organizations and individuals actually inhibit the development of more positive cultural characteristics, rather than spur them on.
Testing and failure, which are critical parts of innovation, are punished more than rewarded. Even sound risk-taking is reduced because of the fear of repercussions within the organization. In short, organizations frequently ignore the advice, “you can’t score if you don’t take a shot.”
Organizations need to be open to measurement and feedback. Looking, understanding, and sharing financials, operations reports, and sales reports are the first step towards embracing new structural paradigms. Simple research studies, social media, and other devices are additional tools.
Open systems and collaboration are like winning the trifecta at the horse track. Open systems have been around for a long time but are becoming the norm for success. They reject bureaucracy, authority, hierarchy, and closed decision-making processes. They encourage participation, diversity, new rules, and to some extent, chaos.
These new structural paradigms, cooperation, smaller can be better, and open collaborative systems, offer great hope for organizations. While they rely on innovative approaches to problems, the solutions are readily available. Therefore, once we acknowledge that different strategies are needed, we can implement new tactics, provide opportunity and education, and allow our organizations to be effective.
I strenuously argue that if we do not learn to accept and accommodate innovation and deviant behavior both inside and outside of organizations, we cannot change or achieve excellence.
“Most people do not listen with the intent to understand; they listen with the intent to reply.” —Stephen R. Covey
We’ve all been guilty of it at one point or another. We get so caught up in thinking about what we’re going to say next, that we fail to listen to what is being said. But, when we don’t work on being a better listener, we rob ourselves of the opportunity to connect with others, gain valuable information, and truly engage in the conversation. So many miscommunications result from a failure to be a good listener and really take in what is being said.
Meanwhile, most of us consider ourselves to be good listeners, when in reality, we could all probably benefit from improving our listening skills. And, acknowledging that we need to be a better listener is the first step.
Here are some examples of how poor listening occurs:
There is no question that there is more communication than ever today and that listening requires more attention, and prioritization. Many of us receive some combination of more than 100 emails, 2-3 hours of TV, 3-5 hours of interaction with a computer, read numerous books, magazines, blogs, and other papers, 1-2 hours of phone conversations, 1-2 hours with social media, 1-2 hours of podcasts, 2-3 hours of meetings, and even a little social time with our family and friends. It’s a lot to take in. How much do we hear and actually take in?
There is no escaping the fact that biases affect our attitudes and perceptions of individuals and information. While it is frequently associated with demographics, it is really much more pervasive. Aware of the fact that preconceived notions (either of a person or the content being discussed) have a dramatic effect on audience members’ understanding and acceptance of information, many presenters work to actively create positive perceptions.
One of the most significant aspects affecting listening is our perception of information. For example, I believe people don’t take enough risk. How much freedom do you allow innovative people to break rules? When do you provide support versus challenging subordinates and colleagues? While there may be analytical solutions to some of these, our predispositions are frequently more important in determining how we respond. Instead of asking questions, being a better listener, and learning more about an unconventional idea, we respond with resistance, usually because it feels safer than taking a chance.
The parameters of listening are constantly changing. New tools like Zoom, targeting, social media, etc. are constantly evolving while old ones decline. I am an original AOL customer who received a disk in the mail (how many of you even remember that?) and am in panic that AOL may cease to exist. However, that creates some great opportunities for companies who want to make mostly older customers feel comfortable—that is, if they’re listening to those concerns.
People love to talk, but hate to listen. Becoming a better listener is not merely not talking (though even that is beyond most of our powers); it means taking a vigorous human interest in what is being said. You can listen like a blank wall or like a splendid auditorium where every sound comes back fuller and richer.
We frequently debate the validity, objectivity, and bias of ineffective listening. However, simply recognizing its existence and making an effort to understand how we can improve is more important. We need to consider the problems and develop solutions.
Want to be a better listener and communicator? Try some of these suggestions:
Repeat back what you think you heard. This tactic gives the speaker the chance to repeat themselves if you misheard.
Follow Internet courtesy and practices. What we hear is greatly affected by the nature of the communication. Sending inappropriate emails by mistake is not a good practice, but happens all the time. Be courteous and brief. Target the right people and sites. YouTube, Facebook, and LinkedIn have quite different audiences and impacts. Ensure recipients are getting messages rather than creating spam or complex links.
Keep things interesting. In general, the audience, whether on the Internet or in person, forms its perceptions of a presentation in the first 90 seconds. As an admitted nerd, my presentations can be a little statistic heavy, which can translate as boring. Thus, I try to improve audience reception through tools like editors, comedy, stories, and pictures.
Keep the audience comfortable. Environmental issues can be the most ignored factor in communication. Licensing agreements, celebrity endorsements, and great environments are all designed to make the audience comfortable with presentations. Frequently, seminars are created with crowded schedules to justify the expense of taking people away from work. However, a poor technical speaker at 1:30 p.m. in an over extended morning session or at 5:30 p.m. after an all day session is most likely going to be ineffective. Research shows that serving food and not being the last presenter help to improve the impression you make on your audience. At one company, we had a motto for our presentations and meetings: “FOOD WORKS.” Fruit and penny candy are truly unheralded aids in making a great presentation.
Try to create a “WIN-WIN” environment when communicating. We all know positive feedback is received more favorably and, yet, we revert to criticism, blame, and a one-upping mentality in pressure situations. We seem to follow the common TV format of adversarial commentators that frequently provide more confusion than resolution. Try to keep things positive, constructive, and remember to strive for compromise.
The value of being a better listener is undeniable. It’s a skill and skills require practice and development. Understanding the purpose, content, and importance of communication can also help you improve outcomes. Because, let’s face it, communication is the key to a lot of things including relationships, business, and success.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
At some point, through everything COVID, we’ve all wondered: when will things return to normal? The short answer is: never. Things won’t (and can’t) return to the way they once were. And, despite extensive planning and attempts to reopen the economy, there will be change and it will usher in a new normal.
Nowhere is this more evident than with the economy. Every day we hear success stories like Peloton and Papa John’s Pizza who are absolutely thriving. However, this drowns out the noise of businesses like Hertz, JCPenney, J. Crew, and Wework who have gone (or are in the process of going) out of business. Everyone is touting the need to preserve and support small businesses with absolutely no idea how to save them. The reality is that hundreds of thousands of small business are no longer viable and will be gone. Industries such as airlines, travel, gyms, hotels, recreation, sports, and restaurants will need completely revamped models in order to survive.
The economic issues are compounded by the integration of social circumstances. Social distancing is the elephant in the room and it’s completely disrupting many industries: 25% to 50% restaurants, hotels, airlines, and theaters cannot function (profitably) this way. Simultaneously, we are learning to like and, perhaps even enthusiastically, incorporate certain aspects of the current situation into our daily lives. Working from home, delivery and take out, and Zoom meetings are all becoming preferred activities.
An obvious game changer would be a vaccine. However, the uncertainty of when and how that might happen leaves us with no choice but to forge ahead with the information we have and the circumstances in which we currently we find ourselves. So, let’s examine some obvious changes that need to be managed to get to a new normal:
Office space, rush hour, lunchtime eating, and traffic will reduce by at least 15-30% as working from home becomes largely preferred.
Entertainment, sports, restaurants, and travel will reduce by 15-30% as patronage drops due to capacity limits / spacing requirements, cleaning protocols, and other restrictions.
2020 is and will continue to be a chaotic disaster. There is already overwhelming uncertainty regarding a vaccine, the virus itself, the economy, unemployment, education, the upcoming election, and increased social unrest in the form of protests.
Many forms of stress release have been taken away or changed due to the stay-at-home order (i.e. entertainment, exercise, visiting with friends). Unmanaged stress can lead to depression, unhealthy behaviors, and increased instances of family abuse.
Other major concerns: absorbing shutdowns, 10% unemployment rate, 100,000 virus deaths, -5% GDP decline, and a few more government stimulus programs.
As states start the process of reopening the economy and more businesses and schools startup again, we might expect a second wave of the virus followed by another (full or partial) shutdown.
Therefore, amidst all of the uncertainty and change, it’s absolutely necessary to focus on stabilizing, developing alternatives, and accepting that a new normal is inevitable.
In contrast, 2021 could offer some huge opportunities and a turnaround in regard to many of the things above. The election, fewer deaths, 4-7% unemployment, 2-5% economic growth, and a gradual relocation / increase of public activities are fairly reasonable predictions.
So, how do we move forward effectively?
Hope for a vaccine should not be discarded, but it also shouldn’t be counted on.
Don’t get distracted looking for quick solutions rather than attempting to implement new paradigms. Drive-in movies and restaurants may be nice temporary activities, but they are not long-term solutions. Meanwhile, opportunities to work-from-home and Zoom calls are providing whole new structural alternatives. The problem, however, is that we need to maximize their potential rather than just settling for their existence.
The pandemic has shed light on the fact that many of our institutions (such as schools, health care, social services, and retirement homes) are extremely broken and require structural change. We need to learn to focus on developing great programs rather than simply putting Band-Aids on problems. For example, nursing homes should be smaller and more patient-centered instead of resembling an overstocked warehouse. Many nursing homes have very diverse populations grouped together with little hope or expertise to service individual needs.
Many other businesses and industries (like post offices) are changing as well. Discussions generally focus on close, fund, or shrink, but alternatives (such as changing models, merging, adding programs etc.) should receive more attention. For example, I have an apparel client who is now making masks and safety equipment. Shifting needs requires shifting business models.
Remote efforts, technology, and innovation are the key trends to keep an eye on. Activities and services that require crowds and/or physical contact will continue to be problematic. I think much of the discussion to follow will be about the technologies regarding issues like social distance in public (i.e. elevators) and how to improve working from home. We have the opportunity to create new work environments and should start by considering the goals, strengths, and constraints. For example, it’s easy to advocate only allowing half the people in an elevator at a time, but that doesn’t get thousands of people up the elevator of a 30-story building in a timely manner.
Everyone tries to discount politics in forecasting, but it is critical during this period. I believe the Democrats will have a landslide in all areas including state and local government. This would certainly embrace climate change, infrastructure, education, health care, taxing the 1%, immigration, and social rights. Less of a landslide or loss would bring about very different changes. Either way, we must incorporate our assumptions into our actions and not ignore politics simply because it’s an uncomfortable topic.
While we’re still not sure what exactly the new normal will require, we do know many of the opportunities and challenges that will come with it. Avoid engaging in obsolete or doomed activities and, instead, embrace innovation, testing, and new paradigms. All cultural change starts with openness, includes a focus on infrastructure and measurement, and requires an awareness of biases. And, ideally, those steps lead the way to cultural change that ends in positive progress.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. This combination has been the key to client success. We welcome comments, suggestions, and questions. You can write him at: bshlensky@startupconnection.net or call at: 914-632-6977
So, you run a business, huh? You probably provide some sort of product or service, right? Okay. So what? Who cares? There are a lot of products and services out there to choose from; why should I give a damn about what’s your brand?
Branding and marketing have
dramatically changed, but marketers are still ill-equipped and reluctant to
incorporate the changes. While creativity, branding differentiation, and
advertising used to rule the field, the rapid growth of companies like Amazon
have made value, service, quality, and culture more important. Now, more than
ever, it’s obvious that details, the execution of logistics, and operations are
integral marketing opportunities.
Consider these new key
perspectives:
Branding is not what you tell
them. Branding is what they think of you.
Your customers determine the
value of your products—not you!
We all know the adage:
Features tell, benefits sell. So, if this is true, why do so many
entrepreneurs still focus on the features of their product or service rather
than the benefits? Your prospective customers don’t care what your product or
service does; they only care about
what it does for them!
No one cares about a cool logo or a fun design. No one cares about creative
packaging. Consumers care about being satisfied. No one cares about your brand
unless they have a good experience.
Therefore, “branding” is actually more operational. So, how do we
shift our mindset from the old “traditional” way of branding and refocus on execution?
Make A Good First Impression
That first experience leaves a lasting impact. Is your store clean? Were the employees friendly? Did you have what the customer needed in stock? Is your website easy to navigate? Details matter. That’s why people hire designers to build websites and decorators to create ambiance. If a consumer’s experience wasn’t memorable in a positive way, you may have lost them. If their experience was bad, you’ve definitely lost them. What’s your brand is how they walk away feeling because that’s what they will remember.
Have a Strong Digital
Presence
Nowadays, everything is digital. It doesn’t matter if your
business is virtual or brick and mortar, you need to have an online presence.
I’ve seen people intentionally avoid a particular store or restaurant because
their website looked out of date or they had bad reviews on Yelp.
Things to consider: Is your website easy to navigate? Is
your store easy to find on Google Maps? Does it even come up in a Google
search? If a potential customer can’t find your store on the first try, chances
are they’re giving up and going to whichever store they could find easily in
their Google search.
Digital Branding needs to be comprehensive. You should have
a website, social media accounts (Instagram, Facebook, Twitter), and positive
reviews on sites like Yelp.
Do Not Neglect Operations and Execution
Adequate staffing, prioritizing services, and having enough supplies
to meet customer needs without incurring excess expense is critical. Pizza
parlors need to plan ahead for Super Bowl half-time deliveries, right? This
might not be your particular problem, but every business has its own version of
the “half-time rush.” If a first-time customer tries to utilize your service
and is disappointed, you’ve probably lost them.
Provide Service with
Integrity
Obviously, the goal is to always provide quality service the
first time, but we all make mistakes. If you do mess up, own up to it and try
to make it right. Many cafes offer free drink coupons when an order isn’t made
correctly. Acknowledging the error and attempting to make it right can
sometimes prevent a lost customer.
Brand Does Not Determine Price
Traditional pricing models no longer apply in today’s world
of business. Entrepreneurs who recognize this will be better able to price
their goods and services appropriately. In the past, it was thought that a
well-known, desirable brand meant you could charge whatever you wanted and
people would pay. Now, search engines make it incredibly easy to compare prices
and analytics are showing that, in reality, a low price is more important than
a brand name. In fact, there are tons of people who may want the prestige of a
designer bag, but are just as happy buying a knockoff.
Effective pricing strategies vary widely depending upon a
number of factors. Consider alternative pricing tactics as well as the entire
pricing package. It’s also imperative to remember that pricing is dynamic. Just
look at Amazon and airline companies: you can search the same product or flight
two days in a row and the price may shift. Demand determines price. Some
companies even brand themselves based solely on things like “the lowest price
option.”
Offer Convenience
In this day and age, if you’re not providing some sort of
ease of use or accessibility, you’re dead in the water. Try to offer some sort
of convenience, such as easy payment plan options, delivery, or 24-hour
customer service. Making your consumer’s experience efficient and convenient makes
your brand “user-friendly.” And who doesn’t want to be thought of in that way?
Company Culture
This is one of the most
important components of branding. Creating and maintaining a positive company
culture is a critical component in achieving excellence and establishing a
great brand. People remember experiences. They may not remember what they were
buying, but they’ll remember the employee who was rude to them. Please and
thank you always go a long way.
Your Brand is an Experience
Know your strengths. What makes you interesting and
different from your competitors? This doesn’t necessarily mean “better.” Two
different soaps can clean equally well and cost the same amount of money, but
if one comes in fun animal shapes… that stands out. It’s different. It’s
memorable.
There are people who shop at Saks Fifth Avenue, but also frequent
Costco. These consumers aren’t worried about price; they’re looking for an
experience—and they will receive a very different one at each location, but
both will be satisfactory and in alignment with their desires. People enjoy
shopping on Amazon because they like the experience of purchasing items from
home, in their sweats. Successful brands have clear, distinct experiences.
So, what makes your brand
unique? What experience are you providing? And why should anyone give a sh**
about what you’re offering? We’d love to hear your feedback in the comments
below!
A customized approach that caters to each of his clients’ specific needs is what sets Dr. Bert Shlensky apart. With a PhD from the Sloan School of Management at M.I.T., he focuses on implementing individualized strategies that have helped countless businesses increase sales and profit. He knows what works and has the experience and expertise to help you take the steps necessary to achieve your business goals.
Operations is finally getting its rightful place in small business strategy. Automation, technology, customer needs, and the sharing economy are becoming vital components of the branding and marketing process. In order to achieve marketing success through operations, here are some examples:
In sports, analytics can be used to improve the individual impact of player skills. Defensive shifts in baseball, the three-point play in basketball, and increased passing in football are fundamental changes that have been accelerated by analytics.
When selling on the internet first started, delivery and security were thought to be major barriers. Today, customer service and delivery in 1-2 days are generally standard. In addition, the internet has proven that eliminating stages of the sales process (like those used in brick and mortar stores) can dramatically reduce costs and prices.
Creativity, differentiation, and advertising have been the focus of traditional marketing and branding programs. However, issues like value, service, quality, and culture are producing better results. Compare the focus of many brands in department stores, versus Amazon and other leading online sites. I argue that online retailers succeed partly because of the lack of technological skills among many traditional marketing professionals.
Here are some ways to improve marketing success through operations:
1. Digital Branding and the Internet – If you research anything about business today, it’s obvious that Apple, Google, and Amazon are three of the most important sales and communication vehicles. Nearly everyone uses their phone and/or laptop to research and buy products and services. However, the digital efforts in many companies are still buried in departments like accounting or marketing. I argue that digital activities and marketing need a special place in organizations and should be a major part of marketing programs. For example, digital activities need to be an integral part of efforts like emails, websites, sales, marketing, social media, logistics, and customer service (and should be treated that way.)
2. Excellence – There is an ongoing debate about pursuing excellence versus change just for the sake of change. This topic is affected by several issues and we need to understand how problems can require different solutions. Businesses are subject to radical change, so they need to build mechanisms into their processes. While we will face more uncertainty and instability, we need to focus on changing and simplifying processes to reduce the risks. Strategies like pivoting, developing and testing/measuring/adapting need to be built into our organizations.
3. Service – Service, image, and culture are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Some suggestions:
Focus on your target market, segment, and your ideal customer.
Be polite, listen, and then act based on what you have learned.
Become a trusted resource to your prospects by providing information that will help them make a good choice.
Build an email list and send informative mailings on a regular basis.
Keep in touch with potential and existing customers.
4. Company Culture – Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy without a supportive culture will undoubtedly fail. I’ve seen it happen too many times.
Open systems are becoming a critical aspect of great cultures and they often reject bureaucracy, authority, and hierarchy. Open systems encourage participation, diversity, new rules, and to some extent, chaos.
There is no better example of this than the Golden State Warriors, who just won their third NBA title in four years. Much of the attention is given to their super stars, but if you look behind that, you see how the entire organization (including the training staff, coaching staff, medical staff) are all united to create excellence and a unified culture.
5. Prioritizing with the 80-20 Rule – Prioritizing can produce dramatic results. In particular, focusing on strengths and eliminating weaknesses has dual benefits. For example, I have a client who has the best product in the industry, but charges a little more money. She has achieved success by moderating some prices, but mostly in developing messages that explain her quality difference.
In the modern business realm, it has been proven time and time again that 80% of business revenues are generated by just 20% of our customers. Yet we all continue to waste time, money, and inventory dollars on customers that bring in a lower return. This tendency also frequently adds confusion and complexity.
By focusing on the products that you know your customers want, you’re making them feel much more confident (especially when you’re selling online.) Instead of finding new ways to market products that simply aren’t selling, you may be better off to shift over to what is selling. If you give people what they’re searching for, they’ll buy. If you don’t, they won’t. It’s that simple.
In summary, operations, and logistics should be viewed as a critical opportunity to improve sales, profit and competitive positioning. While there are some technical aspects to this, it is the thought process and integration of the key components that will lead to success.
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business and President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select start-up and small businesses.
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
Operations is finally getting its rightful place in small business strategy. Automation, technology, customer needs, and the sharing economy are becoming vital components of the branding and marketing process. In order to achieve marketing success through operations, here are some examples:
2. Excellence – There is an ongoing debate about pursuing excellence versus change just for the sake of change. This topic is affected by several issues and we need to understand how problems can require different solutions. Businesses are subject to radical change, so they need to build mechanisms into their processes. While we will face more uncertainty and instability, we need to focus on changing and simplifying processes to reduce the risks. Strategies like pivoting, developing and testing/measuring/adapting need to be built into our organizations.
Open systems are becoming a critical aspect of great cultures and they often reject bureaucracy, authority, and hierarchy. Open systems encourage participation, diversity, new rules, and to some extent, chaos.