If you’re looking for a gift for someone who has everything, and who would be interested in giving something to someone who has almost nothing, then take a look at Kiva.org. It’s micro-lending for the rest of us.

Micro-lending, as you may be aware, is the concept of lending very small amounts of money to people who live in poverty so that they can entrepreneur their way out, or at least improve their standard of living significantly. Nobel Peace Prize winner Muhammad Yunus introduced the idea with Grameen Bank, and it has been growing steadily ever since in various forms. According to an article in the June 2008 Harvard Business Review some 140 million have taken advantage of micro-lending so far, but that pales in comparison to the 3 billion people who live on $2 a day or less.

Micro-lending largely has still been bank or non-profit based. What Kiva.org does is open it up for anyone to make the loans. A visit to their site allows you to read about the many people who are looking for loans, and it’s a simple process to sign up and lend them money.

As is the case with other micro-lending schemes the borrowers are almost entirely women because they are more entrepreneurial and have a much higher payback rate (come on gents, get with the program!). As your selected borrower receives more loans or makes progress on their goals, or pays you back, you get update emails.

Note that this is not a donation, it is a true loan. So you get paid back. And then you can loan the money to someone else. It’s the gift that keeps on giving.

The ten-year old son of some good friends of ours recently had his birthday and my wife gave him a $25 certificate to Kiva.org. After looking at the site he wanted to loan money to everybody! He searched for someone who had so far not received any loans, and was delighted to see that after he got the ball rolling, other people started loaning to them as well! He was just ecstatic, and it’s a double gift: the borrower benefits, and this young person has a sense that he can make a difference in a very personal way on a global problem.

In this cynical age, that is a gift in itself.

Related posts: Co-Creation in Emerging Market

Jess McMullin has posted an interview he did with me a few weeks back, on his bplusd blog (a very good read all around). We touched on a lot of different topics in our 45 minute conversation, which he summarizes as:

• Chatting about the strategy practice at frog. Differences between traditional strategy offering from McKinsey or Bain. The advantages of integrating strategy with a more holistic practice including industrial and interaction designers, engineers, and others.
• Discussion of Org 2.0 companies and how they are better able to take on innovation and create compelling experience-based products, services, and systems. If you’re in an Org 1.0 company, start with a skunk works.
• Dealing with the innovation surplus. Companies that have embraced innovation now have no shortage of fantastic ideas. Now the challenge is prioritization and execution.
• Core insights. Like core competencies, core insights emerge from the unique combination of experience, skills, information, and activities of your organization. Core insights are hard to duplicate in the market, and offer significant competitive advantages.
• Some thoughts on influencing innovation - how can aspiring innovators escape the gravity well of the status quo? If you’re not in a company that embraces innovation, what can you do? Adam comes back to skunk works as one way to build momentum. Look for much more on this topic at bplusd in the coming weeks and months.

 It was a lot of fun to do, thanks to Jess for suggesting it and putting the effort into doing it. You can download the full mp3 from his site.

Creating good user experiences (UX) over and over again means creating first good employee experiences (EX - I’m trademarking that!). That’s the lesson from Southwest airlines according to an NY Times article about retiring co-founder Herbert Kelleher:

Over the years, whenever reporters would ask him the secret to Southwest’s success, Mr. Kelleher had a stock response. “You have to treat your employees like customers,” he told Fortune in 2001. “When you treat them right, then they will treat your outside customers right. That has been a powerful competitive weapon for us.”…

[W]hen you look at a company like American, with its poisonous employee relations and its glum customer base, and compare it with Southwest, with its happy employees and contented customers, you can’t help thinking that Mr. Kelleher was on to something when he put employees first. “There isn’t any customer satisfaction without employee satisfaction,” said Gordon Bethune, the former chief executive of Continental Airlines, and an old friend of Mr. Kelleher’s. “He recognized that good employee relations would affect the bottom line. He knew that having employees who wanted to do a good job would drive revenue and lower costs.”

This isn’t really surprising for a service company like Southwest, but the same rule applies, I believe, to companies that make products. Employee happiness often comes from walking the walk — in other words not just making big pronouncements about how much you love your employees (Kelleher wept when talking about his employess in his going-away speech), but in seeing those through in actions big and small. And often it’s the small ones  that show how you actually mean. It’s kind of like what they say about ethics - it’s what you do when nobody’s looking.

These small touches to how you treat employees are often the most intimate ones, and they communicate how deeply felt the relationship is (or not, as the case may be). Southwest, for example, seems to give its flight staff a great deal of autonomy when it comes to how they intereact with passengers, but bounded by some established guidelines. This has famously led to some staff singing the safety announcements and adding comedic commentary (I once heard one say “There may be fifty ways to leave your lover, but there are only four ways off this big bird!”). It also probably led to the more recent episodes of passengers getting walked off planes for risque clothing…just goes to show that what constitutes a “good” UX is different for different people.

While any company can luck out with one-off good experiences, a long term systemic philosophy of treating employees right fosters a mindset that is focused on thinking about the needs of others, which ideally translates into the products the employees create for the company’s customers.

Cable TV companies are famously indifferent to user experiences, and my provider, Comcast, recently showcased one example. They finally started allowing previews of on-demand movies, but check out how they managed to  mess up the experience:

That giant blue box stays on screen for the entire duration of the preview, obscuring a good chunk of it (even more for non-widescreen previews than what you see here). It’s really distracting.

You wouldn’t see something like this if Southwest ran a cable system.

References:

The Sinatra of Southwest Feels the Love, NY Times

Org Chart 2.0: Built for User Experience Systems

There is an interesting article in the April 2008 Harvard Business Review about how to be a successful services company, and one of the examples they talk about is Progressive Insurance. They talk about the two features of Progressive which are most distinctive and visible - their white vans, and how they list competitor’s rates alongside their own. As the article describes:

When someone insured by Progressive is involved in an auto accident, the company immediately sends out a van to assist that person and to assess the damage on the spot… Customers love this level of responsiveness and give the company high marks for service.

But customers are very price sensitive about auto insurance and so would not pay more for this service in their monthly premiums. So why does Progressive do it? Because it cuts down on fraud. Turns out most insurance fraud happens when people make claims on accidents that never happened or which were staged. This results in expensive legal costs. By dispatching a representative to the scene immediately, Progressive helps prevent this type of fraud, and even discourages it pre-emptively because people will expect a representative to show up and therefore not even attempt fraud.

 

It’s not that Progressive is determined to go one better than rivals to win the business. In fact, Progressive’s is the lowest quote only about half the time. What Progressive does believe is that is quote is the right one given the probability of that person’s getting into an accident - a probability that the insurer is best in class at determining. If indeed its quote is spot-on, then allowing a competitor to insure the customer at a lower rate is doubly effective: It frees Progressive from a money-losing propoition while burdening its competitor with the unprofitable account. Thus a level of service that looks downright altruistic to the customer actually benefits the company.

In other words, potential customers self-select not to use Progressive, but still come away feeling impressed by Progressive’s service and trustworthyness. If at some point in the future when their driving record has improved they may return to Progressive’s site and see that their price has improved, and potentially switch. So it’s a win-win for Progressive and buyers, only Progressive’s competitors lose. The perfect scenario!

In honor of Earth Day, here’s a presentation I did a few weeks ago Design Green Now in Washington. This is the slide deck I used to introduce myself and frog for ten minutes or so before the panel discussion itself. It misses quite a bit without the talk over, but you’ll get the general idea!

If you view it on Slideshare, you can see a full screen version.