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We had to take communication to a Web 2.0 environment.
We had to take it online.
I think the tools are incredible.
You get better loyalty, you get less office politics.
Taking an idea and really stretching it across the entire
organization and network out.
Meet individuals that are passionate around the same
thing to accomplish something that you'd never be able
to accomplish on your own.
Most companies traditionally communicate at employees.
They send a message to employees, and the message
gets received, you hope, and now we're done.
But that's not how the world works anymore.
Employees will start groups on Facebook, or MSN, or
at MySpace, or wherever.
They're already socializing.
Why not give them a venue where you can be part
of the conversation?
A group of us set out to say, well let's make a difference
and let's change this.
Blue Shirt Nation is a social networking website, something
very similar to MySpace.
Blue Shirt Nation has been pretty much like a lab for us.
It's allowed us to try a lot of different things, fail really
fast, and then try things again.
It gives me an opportunity to really connect with more of my
coworkers, not just here at the store but throughout
the entire company.
The WaterCooler is the online discussion forum that allows
employees to talk about whatever's on their mind.
It's the only method where I can actually talk to my team
from the comfort of my own home.
It's the fastest way to distribute information
across the entire store.
The use of Wiki makes our employees feel like they're
empowered, and that they can contribute to everything
within the company.
If the stores are learning something from the customers,
or any experiences, any events that they're having, they
can add in the Wiki page.
I have created the actual home theater page.
It supplies retail field information on home theater.
We also have contact lists on there if they
have any questions.
One of my employees had a great idea.
He came to me and said -- what do I do with this idea?
The idea itself was the Geek Squad gaming services.
I told him to go ahead and post on the Loop Marketplace.
The Loop Marketplace is where people can go to post
innovation ideas that they want some feedback on.
Four hours later my idea was up and people were
commenting on it.
I was funded.
Now it's going company-wide.
It was a pretty fun process actually.
With so many stores spread so far and wide apart, how do you
actually get people's voices into our most
important decisions?
How can companies use the power of the free market to help
drive their decision making?
Tools like the prediction market tool help us do that.
It's a web-enabled stock market game.
Stocks represent future events or future outcomes.
And people trade in the market based on what they think
will happen in the future.
If I'm leading a project and the stock is will this thing
launch on time, and then all of a sudden it went down
20%, I instantly know that something has happened.
That gives me a chance to be able to have a voice to
leadership when they're seeing the stock, or they're seeing
the movement in changes going.
And know that the stuff that I know is valuable enough that
people want to hear it.
We talk about our core philosophies at Best Buy.
It allows us to bring our unique experiences and
ideas to the table.
You know, it's not easy to call up Brad Anderson and say -- hey
look, this is what I'm thinking.
You get better loyalty, you get less office politics.
And you create the conditions whereby this marketplace of
ideas can come to fruition.
We're talking more as a company at all levels, which is great.
I think we have to turn that transparency outward towards
the customer, and allow them to participate in the
conversations as well.
Imagine a Wikipedia not only populated by the masses looking
for knowledge, but also by a bunch of tech masters from Geek
Squad who are also using the same space for their own use.
Now you've got the quality of the crowd and some
Zen masters in the mix.
We're moving from a role of being the ones who own the
messages and deliver those to employees, to a role that
we are just facilitators.
We're encouraging, we're enabling.
We're getting ahead of the curve so that when those next
generations of folks come work for us, we're set up.
We already have everything ready to go for them.
It allows us to use those insights, that input, and that
feedback to do better at serving our customers.
SPEAKER: Ladies and gentlemen, please welcome Vice Chairman
and CEO of Best Buy, Brad Anderson.
And Chairman, The Conversation Group, Peter Hirshberg.
BRAD ANDERSON: Peter, good to see you.
So when we think of Best Buy, this is an organization pushing
3,000 stores and $50 billion in revenue, and it's in the
distribution business.
And that's not the first place I would think about as a
company as a Wiki, and pulling knowledge in from the edge.
So talk to me a little bit about the transformation, or
how such a traditional business is adopting some of these new
tools, and culturally what this power shift means.
BRAD ANDERSON: Well, we weren't actually built to do this, so
it's a little like taking a big engine and completely
flipping it.
But the great thing that we've had as an organization is we've
had to sell technology, which is always in flux
and transition.
There's nothing stable in the businesses that we sell.
So it made it a little easier to do this.
And essentially what we saw as the primary insight was that
our customer who we built to basically distribute goods and
services to, we're now going to be much more interested in how
they were going to use the product and with the
application of the product.
And instead of that being most easily served by one single
efficient methodology, that's now literally millions of
different choices that people are making in terms of-- so
we're going to have to go from a product distribution company
to a service company, and we're going to have to go to
a solution company.
And it would be a very wide array of solutions.
So this seemed like the only possible way to do it, and the
most exciting way to do it.
PETER HIRSHBERG: As I've watched your company over the
last year, I've seen you roll out experiments like the ones
that we've just seen where it almost looks like employees are
trying things, and you say that works, and then you're
learning from that.
So culturally here you have employees taking the lead,
folks on the line -- kids -- and then you have traditional
middle management doing things the way they should
be doing things.
What's it like at that wave front, when you have
traditional management coming up against power shift
and Wiki-esque things?
BRAD ANDERSON: Well this is something that I really think
there hasn't been anything close to enough dialogue about.
This is murder on middle management.
Or actually, the more senior the management
is the worse it is.
Because a lot of us who assume the role of leaders assume the
role of leaders because we like to be on stage.
And we like to assume the limelight, and we like
to make the decisions.
And this absolutely flips the role of the leader.
Because actually if I've got an idea, it's less effective than
if somebody in the field has an idea.
Because it has an authenticity coming out of the field that it
doesn't have coming from me, and it can develop a community
before it actually gets actionable.
So fundamentally as a leader, what I've got to be interested
in is not so much divining the great right strategy, but I
have to have the curiosity to do the right kind of listening.
And I have to know how to take whatever resources I can do as
a leader to marshall it behind initiatives that come from
somewhere else in the organization instead
of from the top.
And that's really been tough for us at the senior levels.
PETER HIRSHBERG: I think one of the reasons that this
innovation is happening at Best Buy first is there's almost a
perfect storm going on.
You're dealing in geeky technical things where you need
an awful lot of the collective knowledge of line employees and
customers, but your employee base is really interesting.
When Jennifer spoke earlier, she talked about the fact
that 50% of the world is under 25 years old.
And that's pretty much the Best Buy employee base.
So talk to me a little bit about the people who are at
the core of this kind of--
BRAD ANDERSON: Yeah, we had this enormous natural asset.
I sort of look essentially at organizations as they're
sort of energy pools.
And we've got 170,000 people with the potential insight
of 170,000 people.
And I know after 35 in starting in the stores, you're exactly
as motivated to deliver service as you feel like you're
engaged in the work.
So their level of energy for the whole enterprise rises
dramatically if I can feel like I'm actually engaged and not
just doing a job somebody else told me to do, but I'm actually
creating the job that I'm doing.
And with the technology we're talking about today, you
literally can do that.
Plus that our customers use the devices in so many different
ways, if we're going to mirror it we have to have a huge range
of capacity in able to be able to add value in the process.
So the economic potential for us as an organization, to be
able to sort of mirror those 22 year old-- our average age is
about 22 in terms of our employee base -- to mirror them
and their insight is just enormous.
And that's the adventure, to see if we can get
these two lined up.
PETER HIRSHBERG: That video went by quickly.
I want to go through a couple of the case studies there.
There was something called the Loop Marketplace.
Now this essentially replaces the suggestion box.
And what does everybody think of the employee suggestion box?
And in this case, you're actually using almost like a
financial market, where if an employee has an idea they
can make a suggestion.
And then if somebody in corporate wants to fund
it, it makes the market.
And the employee doesn't-- it's not just thanks
for the suggestion.
It's like here's some money, go ahead and do it.
BRAD ANDERSON: Yeah, and there's even a bigger
advantage before that.
Which is if I hear the loop and somebody in corporate doesn't
think it's worth anything, but I'm in another store somewhere
and I think that actually solves my problem, I can go
try that somewhere else.
And so if it doesn't land with the person in corporate
initially, I could have a small army starting to do it before--
that actually overwhelms the decision that winds up being
made at the corporation, because I've now got evidence
that it actually works.
PETER HIRSHBERG: And there's another financial market type
thing, which is Tag Trade.
Which is where you almost assign phantom stock to
programs, like how many of these DVD's will we
sell, or how will the Christmas promotion be.
And you track what employees think of the stock
going up and down.
BRAD ANDERSON: This was the first thing we had that
really got exciting.
Because we do Christmas forecasts every year, and as
you can imagine executive-- senior level executives-- if
you tell me that our results are going to be very good, I'm
enthusiastic about hearing that kind of input.
So there's a weighting to the dialogue that's always
there towards being overly optimistic in terms of
expectations of future.
And I've also got necessarily penalty.
If I've got something going on wrong, I may want to
kind of cover that up.
And by creating a marketplace where essentially anybody could
vote, you started to see patterns that almost become--
actually the first Christmas we used it, it was dead on in
terms of figuring out what our sales were going to be on a
daily basis a month in advance.
And the reason it was dead on is that we had the insight that
was in the system that wasn't captured through the hierarchy.
So it's really transformed the way-- it's incredibly helpful
in terms of running the business, because you get a
chance to see the insight inside the business that's
otherwise covered up by a normal hierarchy.
PETER HIRSHBERG: You know when people read information
displays they tend to be schooled in it.
Traders know how to read Bloomberg terminals.
All of a sudden you have real-time information
coming in from employees about what they think.
Going to the merchants who haven't had this before, was
it information overload?
Was it thank you?
Was it what do I do with this?
If I'm sitting there and I'm trying to achieve a given a
number, and the evidence is that I'm not going to be able
to achieve it, I've now given the person that's seen that
evidence a chance to be heard.
And they're heard because they're blind-- they're a
part of an overall market.
So there's no accountability for them for raising
their voice.
PETER HIRSHBERG: One of the other interesting things is
Blue Shirt Nation, which is an internal social network.
And the story of how this came about I found interesting.
Gary Koelling and Steve Bendt, who were in advertising, wanted
to understand from front-line employees what are the
issues in selling an HDTV.
So they actually decided to build a network so the
employees could say what the issues were, so they
could do better ads.
And when they deployed the network the first thing the
employees said was-- thanks for the social network, there's
many things we could use this for.
And you'll have to earn our confidence for us to answer
your questions, because there's better things
we need to do with it.
What was it like culturally when you connected everybody,
and they kind of took control of the engine and
said thank you?
BRAD ANDERSON: Well, it's been a journey.
One of our vice presidents got up and-- shortly after Blue
Shirt Nation was formed-- and expressed his concerns
that it wasn't working.
Because he tried to express what he wanted to do
on Blue Shirt Nation.
And literally had nobody in the enterprise respond.
And the guys who started Blue Shirt said-- you did get an
answer, you got a very profound answer to what
you're recommending.
So it's been a great process of really starting to feel like
we're more connected with this large enterprise of people that
have an insight that those of us, certainly at the center of
the enterprise, can't get very easily.
PETER HIRSHBERG: Here's one of the examples that struck me.
Whenever anyone goes in a Best Buy store we see terminals that
your employees use to get information, pull things up--
which is called the Employee Toolkit.
And evidently, like so many users of IT systems, they
were dissatisfied and wanted a better one.
And ultimately you ended up having the employees build
the better system themselves than go to the consultant.
Here's a clip of Scot Kersten, who was running the project, as
he realized that they could toss the building of an IT
system out to field employees who normally sell DVD players,
rather than the big consulting company that normally
does these things.
Let's take a look at this.
We actually got a request for an estimate on how much
this was going to cost.
And the thing was going to end up costing us $6.5 million.
And the company that was going to build it for us said that we
could probably have a proof of concept out to a test district,
which is about 10 stores, in about eight months to a year.
Then we got six employees up to the corporate office.
Paid for their travel, paid for their hotel.
Ended up spending about $250,000, and six weeks later
we had a proof of concept out to that test district.
So by day they sell TV's and DVD players, by night they
rewrote the IT system.
We had an exercise a couple of years ago when we first started
to put the underpinnings underneath this.
Where one of our leaders had an audience about actually this
size of Best Buy employees, with what our current themes
is-- which is I am Best Buy, which applies to everybody
in the organization.
And at random we just started picking people out of the
audience and asked them to tell a little bit about their story.
And you realize this-- by the time you got to seven or eight
people you realize that inside this room was this enormous
variety of experience and expertise inside
the organization.
And the passion to get the thing done, it was always
closest to the person who cared most about the particular work.
So by the time you hand it to a third party and say
I really care about this, it gets less efficient.
So if they've actually got the technical skills-- and that's
what we're finding oftentimes is the case-- if you can keep
it close enough to the people who care about the outcome,
well the cost goes way down and the speed to get to
it gets very fast.
PETER HIRSHBERG: This says a lot about the difference
between young people who are connected, how they look at
management, and others.
These people came in, dispensed with a lot of planning,
dispensed with a lot of design.
They kind of knew what they wanted and they just kept
working until they got it right.
No there's a real consequence on the other side, which is
that you won't have a scalable product.
But by the time you know that there's a customer for it, the
risk has gone out of building this scalable product.
And the speed to get to market in particular, combined with
knowing that, has been an enormous benefit.
Really is opening up options for us.
PETER HIRSHBERG: The kind of benefits you see in letting
employees participate and create, doesn't just show
up in geeky things.
There was another case where with a workforce average age of
22, getting people to sign up for the 401(k) plan
is a challenge.
And I gather that that was thrown out to the
social network as well.
So here's a clip of Gary Koelling and Steve Bendt, the
advertising guys who built the social network, dealing with
the fact that HR says could the employees please fix the fact
that they're not signing up for the 401(k) program.
Let's take a look.
The team approached us and said we want to have a video contest
on Blue Shirt Nation around the 401(k).
We want to increase enrollment.
And Gary and I looked at each other and
said we'll help you.
We'd be happy to help you, but good luck with that.
Enrollment percentage of our employees in the 401(k) was
around 18% to start with.
After the contest it went up to about 47%.
So that's about what, 40,000 employees that signed up for
a 401(k) that hadn't before.
Because, I would argue, the employees got to talk about
the 401(k) in their voice, in their way, in their terms.
And they connected with others.
BRAD ANDERSON: And I should tell you the story.
We played the video that the employees produced that led to
this huge improvement in terms of sign-ups to our board of
directors, and believe me that did not work.
The two audiences did not have the same values.
Anyway, I'm sorry.
PETER HIRSHBERG: In fact, let's show a clip of that video
to this audience right now.
BRAD ANDERSON: You might agree with the board--
PETER HIRSHBERG: The winning video.
The trick to the 401(k) plan is you've got to start saving
early so you can have more money for the future.
And the time to start is now!
See this is how it works.
Best Buy matches the first 3% contribution that you make
out of your paycheck.
Then they match $0.50 on the dollar for every 2% afterwards.
Don't you get it?
Don't you get it?
What is this?
What are these numbers?
You slapped me in the face!
BRAD ANDERSON: We should have played it for this audience
instead of the board.
PETER HIRSHBERG: What's staggering is the results.
Participation went from like 17% to 46%.
BRAD ANDERSON: Yeah, and we're seeing this tangibly in the
results of the enterprise.
We just finished a quarter that wasn't such a hot quarter from
an earning standpoint, in part because we're spending
a lot of money.
We're spending money on these kinds of initiatives, which we
think is a really good leading indicator.
But the sales number was terrific.
And we also had a number we disclosed, which is for the
first time in the history of the company our turnover rate
of employees in the whole system is below 50%.
And it was a 130% just 2.5 years ago.
PETER HIRSHBERG: The reason large industrial organizations
were built were to do things like deal with nearly 3,000
stores with lots of products.
Meanwhile you're handing a lot of control over to someone else
while asking managers to kind of be cool with it
and manage that.
So how do you manage that?
BRAD ANDERSON: I thought the last discussion just before
was fascinating, because the core thing that has to
be there are boundaries.
So we have to get a return on the investment on the
initiatives that come out of the folks in the field.
Our brand has to mean something to the customers.
So it has to sustain some characteristics.
And the lens we've got right now is that essentially in
order for this to work the values at Best Buy have to
become so deeply entrenched that they are effective
boundaries that keep behavior consistent enough, so that you
actually can count on better fundamental behavior from an
employee base than you'd have if you weren't engaged
in these activities.
PETER HIRSHBERG: So like what kind of boundaries?
What are the things you have to render explicit so people
can run around and create?
BRAD ANDERSON: We have four values that were created long
before we started doing this, but happened to
thankfully really fit.
The first one is unquestioned integrity, starting
with humility.
So it starts with the presumption that you got to be
interested in what the other guy's doing, not just
what you're doing.
And I got to be able to trust you, because if you're not a
person of your word I can't build on that foundation,
especially deep in the organization.
The second is learn from challenge and change.
That the enterprise is going to be constantly in flux,
constantly in transition.
Instead of a bad thing, that's a good thing.
And you need to create environments as a leader
in which that's apparent.
The third is unleashing the power of our people.
Our competitive advantage is using more of the talents of
the people who work for the organization than
somebody else can.
And the last one is having fun while winning.
Having fun while being the best.
And so those four values have to really be lived in each
environment for this to work.
PETER HIRSHBERG: When you mentioned that to me it struck
me that that stuff used to be so much HR stuff when
you had a job to do.
But when you're kind of inventing things, dealing with
the public and sourcing what's going on all the time, it's
almost like you need the constitution or the underlying
precepts because you're letting your people invent
stuff all the time.
And it's no longer just--
BRAD ANDERSON: Well, if leadership strays from this you
can get all the dangers, some of which were referred to
in the last presentation.
PETER HIRSHBERG: Let's move in our remaining time-- we've
talked a lot about internal things-- to how this will
change how you design customer experiences.
And increasingly young folks live with mobile technology.
And when we think of Best Buy we think of the store, and we
think of an online thing.
How is mobile going to come in?
And I think to kick this part of the conversation off we
should throw it over to Ben Hedrington, who works
in IT development.
And basically I was talking to him one day, and he kind of
stated his take on the company's mobile vision.
So let's start with that and see where it goes.
Let's take a look at Ben.
Best Buy says is-- we need our customers to know all we know.
And that's one of our goals.
And that's something we do very well today, and I think a
critical piece of that could be mobile.
What I've learned from talking to some Blue Shirts in
stores is they would love to have more information.
They look at the little cards on the products and
there's three specs on it.
What does that even mean?
Customers are asking them questions they can't answer.
Wouldn't it be great if they could pull out that mobile
device and see everything that we know, in quotes?
So really putting some tools in our Blue Shirt's hand to close
sales, to be smarter, and to learn quicker I think would
be seen as a huge win.
Customer reviews and ratings are currently available on the
beta version of the mobile site I have out today.
And I really envision a customer-- maybe not today,
maybe today, who knows-- walking up to a camera and
saying I need to know what the crowds have said about this.
And it's still the Best Buy reviews from our
BestBuy.com site.
But that's much more information than you will get
by just talking to the people you're standing next to.
So read 60 reviews about that iPod Touch while you're
standing right next to it.
They might walk out and go to CNET to find
that same information.
If I can provide that to them while they're in that
experience, I think that's a net positive for the company
as a whole as well.
PETER HIRSHBERG: So I haven't historically thought of
Best Buy in the user experience business.
But what Ben's basically talking about is we should be
able to provide the same experience you get when you're
looking up stuff, or support information, any time
with you all the time.
BRAD ANDERSON: Yeah, we have an overall sense that the user
experience in the consumer electronics space is pretty
terrible on average.
And we've got a tremendous-- actually any country we've
touched, we can go in and shoot man-on-the-street interviews
and have people talk about the frustrations of dealing
with the products we sell.
Our dream is that we solve that puzzle.
So what we've got to have is basically a combination of
folks with a particular vision of how to begin the elements
of solving the puzzle.
And then we've got to sort of swim far enough ahead in the
horizon that we make it possible for those attributes
to be there as these visions develop.
PETER HIRSHBERG: The theme of Clay Shirky's book, Here Comes
Everybody, is the power of all this wisdom that's out there.
How are you harnessing the fact that it seems like one of the
greatest assets you have is the collective knowledge of your
Blue Shirts, and then all of these Geek Squad folks, and
then the wisdom of all of your customers?
It's like if you put all that together there's a
lot of experience there.
One of the things we want to make sure is-- we're at
the very early stages in relationship to doing this.
This is not mastered.
I mean the early indicators we've got are really
exciting and thrilling.
If you look at potentially what could be brought to bear--
there's no real technical reason this can't be brought to
bear-- is the insight of our customers.
We're actually literally building stores right now with
customers volunteering-- female customers volunteering in a
couple of communities-- to tell us the store we want.
And then we're seeing if we can realize that store.
But the insight of our customers, the insight of a
whole series of suppliers-- electronics suppliers, as well
service suppliers-- and then the insight of our folks.
And if we can get those things linked up, and we're clear
about the problem we're trying to solve, we think we
can add a lot of value.
PETER HIRSHBERG: You know we saw that clip earlier
where the kids built the employee toolkit thing.
And I understand that now having seen that work, you're
rolling out the ability to kind of almost eventually let any
employee kind of express a store, build their
own online store.
In the sense of why have just one online store done in a mass
way, when each employee has their own set of contacts,
their own view of the world, their own relationship,
their own take on products.
BRAD ANDERSON: We had a young man come up and talk to me who
was an intern, works in one of our Iowa stores while
he's going to college.
And when he came up as an intern and started to do some
work at the corporation he said what people in Iowa City don't
realize is who's working in the Iowa City store.
Like the photo department is made up of two professional
photographers who are the best in town, and they have
insight that is enormous.
Now not every department in the store is as good, but boy if I
in Iowa City knew that access was available it would
really be helpful.
And with the web it's possible to do that.
So we're trying to figure out, and we've got some experiments
starting, in terms of how do you make that localized skill
set that may be utterly unique to that particular environment
available and accessible to the communities we serve.
PETER HIRSHBERG: We'll wrap up today.
I want to show you a clip of one of your employees in the
call center doing something that three years ago, before
any social networking, couldn't have been possible.
And let's talk about what that means for-- because
we're going to see.
Let's take a look at Gina.
In this world of Web 2.0, when a customer has a service
disappointment they could potentially broadcast
it globally.
So for example, with this customer MercuryInfo, they
had a negative experience with Sears and they
twittered about it.
Sears wasn't able to help them out with their washer, and they
referred to Sears as being lousy.
Sears is not here engaging with them on Twitter, but we are.
Through the Twitter reader that I utilize, I caught that they
used the words Best Buy in a post and I reached out to them
and said-- here at Best Buy we strive to provide excellent
customer service.
And then the customer said-- thank you for your reply Gina.
I'll take that as a positive customer service gesture.
Your stock just went up a few notches.
And then they again said-- go Best Buy.
So this individual had began their experience with their
washer with Sears, and now it looks like they are returning
to us as a customer.
PETER HIRSHBERG: So when you first saw that, as a merchant
who kind of grew up in sales, you must have looked at it and
thought things are pretty different.
BRAD ANDERSON: It was pretty thrilling for me, because as I
mentioned I started as a clerk in a store 35 years ago.
It's an accident that I wound up in a leadership
job, I just got lucky.
But what I used when I had no real management experience,
strategically was I just used the insight I gained out of a
little three person store.
So the fact that we can have this kind of dialogue coming
from this many different angles with customers as a leading
indicator in terms of what we can do in the future, is for
somebody with my lens is pretty thrilling.
Hard to even have imagined as a science fiction
movie 20 years ago.
PETER HIRSHBERG: Thank you very much.
What I found so amazing about this is I think it was only
four years ago that social networking popped
into our radar.
We remember the bloggers went to the convention,
it was about that.
Then three years ago it was about marketing.
And then we heard about entertainment.
And it looks like these experiments have started
feeding back into actually how one does the art of
management and growth--
BRAD ANDERSON: And the other thing I think we shouldn't miss
is how much more fun it's going to be to work in an enterprise
5, 10, 15 years from now than it was when I started.
And what are the productivity implications for the overall
society if we can figure out how to master these skills?
They should be terrific.
PETER HIRSHBERG: A great note to end on.
Thanks for coming today Brad Anderson.
Thank you all of you.


Brad Anderson, CEO of Best Buy at Zeitgeist '08

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王惟惟 2018 年 11 月 29 日 に公開


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