Success Can Come From Subtleties

Strategy+Business has a fascinating article about a team at MIT that is looking to measure the subtleties that affect the way we perform at work. Here is my favorite example from the article:

n 2006, when Vertex Data Science - a US$724 million private company based near Liverpool, England, and one of the world's largest providers of call center outsourcing - wanted to improve the performance of its telephone sales operators, the managers went looking for an unusual kind of self-understanding. They enlisted the aid of Alex Pentland and his colleagues from the Human Dynamics Group at the Massachusetts Institute of Technology's Media Lab, the elite research institute for digital technology founded by technology pioneers Nicholas Negroponte and Jerome Wiesner. The researchers at the Human Dynamics Group were best known for their experiments in human-machine interplay and wearable computing: using portable devices built into eyeglasses and clothing to track movement and other human activity. They traveled to Vertex's operations offices in Inverness, Scotland, to set up electronic devices that analyzed the speech patterns of the operators on the call center floor. The devices captured neither the specific words that the operators used nor the logic of their conversations, but only the physical voice signal: the measured variations in tone and pitch. Even so, Pentland and his researchers predicted accurately, after only a few seconds of listening, the ultimate success or failure of almost every call.

Successful operators, it turned out, speak little and listen much. When they do speak, their voices fluctuate strongly in amplitude and pitch, suggesting interest and responsiveness to the customer's needs. Operators who speak with little variation come across as too determined and authoritative, but by speaking invitingly, being responsive but not pushy, a skilled operator can let callers find their own way to a sale. "Like a mother speaking singsong to a baby," says Pentland, "variation sounds perky and inviting. If operators do it right, they're almost certain to be successful." Armed with this understanding, a company like Vertex can train its operators to converse more effectively, and can seek new hires who exhibit these speech patterns. If a call starts going badly, a supervisor can detect the signs quickly enough to switch it to another operator. Early experiments have suggested that these insights can improve a company's telephone sales performance by 20 percent or more. And the same is true of other forms of corporate communication. "In pitching business plans, for instance," Pentland points out, "consistency of tone and pace is key to getting your plan rated highly."

Quantification and analysis are powerful tools, but they don't replace understanding. These kinds of advances are great for business… but don't forget to do a gut check to see if things make sense.

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Business Notes

The NYT reports that the minimum wage was just increased. Inflation, anyone?

Congress may approve "the biggest overhaul of mortgage financing since the New Deal."

The government is acknowledging the suffering of business owners everywhere by raising the gas deductible by eight cents.

The Metropolitan Money Store defrauded potential foreclosure victims out of millions of dollars by setting up fake loans and inflated appraisals. Ouch.

The Fed, in a determined effort to control inflation, said today it would "strongly resist" inflationary pressures on the economy. Translation: interest rates are going up in the not-to-distant future.

... More Biznotes

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