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DESIGNING FOR FAILURE
 A quick riff on systems that break and how we should prepare for them.




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
On June 24 2010, Kevin Rudd
stepped down as prime minister
of Australia.


                                                                                   KEVIN WAS AUSTRALIA’S FIRST CHINESE-SPEAKING PM.




                                                                                                                  @alexanderchung
                                                                                                     alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
Shielding Australia from the global financial crisis.




                                                                                    DESPITE




                                                                   Kevin was dumped.

                                                                                   BECAUSE OF




                                      Waning popularity amongst the public and his party.


                                                                                                            @alexanderchung
                                                                                                alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
It was a swift and pragmatic change.
 Like changing blades on a shaver.
 Replace and carry on.




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
When a leader departs - whether
excluded or executed - there is
always a contingency.




©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
In Kevin’s case, it was the Welsh-
born girlfriend of a hairdresser.



                                                                                   JULIA GILLARD IS AUSTRALIA’S FIRST FEMALE LEADER.




                                                                                                             @alexanderchung
                                                                                                alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
In politics, every hiccup is met with a
 protocol for action. In theory, a
 government can never become too
 inefficient or come to a complete halt.




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
Can’t make meeting
                                                        Send substitute
                                                                                             Poor performance

                                                                                                    Call election




                                                                                   Impeach



                              Extramarital activities

                                                                                                                         @alexanderchung
                                                                                                             alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
Marketers work in the opposite way.
                      etisoppo




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
We don’t admit failure. And it has
become acceptable to report our
failures as success.


                                                                                   Say, for example, we threw a
                                                                                   bunch of money into a
                                                                                   television campaign.




                                                                  TELEVISION                                                  @alexanderchung
                                                                                                                  alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
DID PEOPLE NOTICE US?




                                                                                   Most of that money exits at
   WILL PEOPLE REMEMBER US?
                                                                                   our first outcome level.



     WILL PEOPLE CONSIDER US?




     BUY OUR PRODUCT, PLEASE.




                                                                                                                      @alexanderchung
                                                                                                          alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
Instead of planning for this inefficiency,
we parade around impression numbers
as if they replace sales themselves.

We should be a little more humble.




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
Imagine we threw a bunch of
                                                                                   money into a television
                                                                                   campaign knowing that many
                                                                                   people will ignore us.




                                                                  TELEVISION                                                 @alexanderchung
                                                                                                                 alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
DID PEOPLE NOTICE US?




   WILL PEOPLE REMEMBER US?




                                                                                   CONTINGENCY
     WILL PEOPLE CONSIDER US?




     BUY OUR PRODUCT, PLEASE.



                                                                                        We design specific
                                                                                        programs for people who
                                                                                        will ignore us. This gives
                                                                                        us another opportunity to
                                                                                        send them toward more
                                                                                        valuable outcome levels.




                                                                                                       @alexanderchung
                                                                                           alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
DID PEOPLE NOTICE US?




   WILL PEOPLE REMEMBER US?




                                                                                   CONTINGENCY
     WILL PEOPLE CONSIDER US?




     BUY OUR PRODUCT, PLEASE.




There should be a contingency for every
inefficiency in your marketing system.
                                                                                                       @alexanderchung
                                                                                           alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
A Julia Gillard for every
circumstance.




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
DESIGNING FOR FAILURE
 Thanks!




                                                                                               @alexanderchung
                                                                                   alexanderchung.posterous.com
©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.

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Designing For Failure

  • 1. DESIGNING FOR FAILURE A quick riff on systems that break and how we should prepare for them. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 2. On June 24 2010, Kevin Rudd stepped down as prime minister of Australia. KEVIN WAS AUSTRALIA’S FIRST CHINESE-SPEAKING PM. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 3. Shielding Australia from the global financial crisis. DESPITE Kevin was dumped. BECAUSE OF Waning popularity amongst the public and his party. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 4. It was a swift and pragmatic change. Like changing blades on a shaver. Replace and carry on. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 5. When a leader departs - whether excluded or executed - there is always a contingency. ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 6. In Kevin’s case, it was the Welsh- born girlfriend of a hairdresser. JULIA GILLARD IS AUSTRALIA’S FIRST FEMALE LEADER. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 7. In politics, every hiccup is met with a protocol for action. In theory, a government can never become too inefficient or come to a complete halt. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 8. Can’t make meeting Send substitute Poor performance Call election Impeach Extramarital activities @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 9. Marketers work in the opposite way. etisoppo @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 10. We don’t admit failure. And it has become acceptable to report our failures as success. Say, for example, we threw a bunch of money into a television campaign. TELEVISION @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 11. DID PEOPLE NOTICE US? Most of that money exits at WILL PEOPLE REMEMBER US? our first outcome level. WILL PEOPLE CONSIDER US? BUY OUR PRODUCT, PLEASE. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 12. Instead of planning for this inefficiency, we parade around impression numbers as if they replace sales themselves. We should be a little more humble. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 13. Imagine we threw a bunch of money into a television campaign knowing that many people will ignore us. TELEVISION @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 14. DID PEOPLE NOTICE US? WILL PEOPLE REMEMBER US? CONTINGENCY WILL PEOPLE CONSIDER US? BUY OUR PRODUCT, PLEASE. We design specific programs for people who will ignore us. This gives us another opportunity to send them toward more valuable outcome levels. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 15. DID PEOPLE NOTICE US? WILL PEOPLE REMEMBER US? CONTINGENCY WILL PEOPLE CONSIDER US? BUY OUR PRODUCT, PLEASE. There should be a contingency for every inefficiency in your marketing system. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 16. A Julia Gillard for every circumstance. @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.
  • 17. DESIGNING FOR FAILURE Thanks! @alexanderchung alexanderchung.posterous.com ©20 09 U ND ERC U R R E NT G L OB A L . CONF I DEN TI AL AN D P R OP R I E TARY.