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New INC. Magazine Blog Post by Kaplan Institute Exec Director Howard Tullman

Your Rating System Gets Zero Stars

Lyft and other companies want you to tell them about your experience--as long you have something nice to say.

By Howard Tullman

Executive director, Ed Kaplan Family Institute for Innovation and Tech Entrepreneurship, Illinois Institute of Technology

@tullman

As if Lyft didn't have enough grief these days with all the talk about the shabby treatment of its drivers, I had another interesting ride experience that raised a couple of additional red flags. The whole new "trust" economy - where we invite strangers into our homes,  do business with sellers we'll never see, and put ourselves and our kids into cars with drivers we hope aren't dangerous or deadbeats - depends almost entirely on our belief in the aggregated and unbiased wisdom of the crowd.  Some of that wisdom takes the form of ratings systems regarding products, services and people, designed to reassure us about the folks we're dealing with. This is especially critical with ridesharing because we know the two main players do next to nothing to satisfy us about the quality and capabilities of their drivers. But, even worse, what if the ratings we rely on are being gamed to the point of uselessness because they're constructed to make everyone smell like a rose? Just asking.

In any event, I had a bumpy but decent Lyft ride recently and, as I left the cab, I got a message from Lyft reminding me to tip and rate the driver. I selected the tip and then clicked on a 4-star rating (out of 5) because there were a few hair-raising turns, some startling swerves, and a couple of abrupt stops in my short journey, which I thought didn't make for a 5-star trip. Still, I wasn't really trying to knock the driver. Because I believe that drivers who work 14 hours a day to earn next to nothing for all their "gigging" don't need any crappy comments from me. But I thought I was being asked for my opinion and that the rating was appropriate to briefly reflect my own experience. And, by the way, then I wanted to quickly get on with my life.

So, imagine my surprise when my 4-star rating spawned a multi-headed survey about what was wrong with my trip. All kinds of questions that I had no real interest in dealing with. Was the driver this or that? Were there other issues? Did I need help? Frankly, I was simply trying to leave a tip, not deliver a treatise on customer service. And here's where things got a little tricky. I couldn't seem to simply leave the tip and close out the inquiry without responding to the survey. It was a little bit like trying to rate a book on your Kindle without leaving an accompanying comment. Of course, if I changed the rating to a 5-star, I was free to go. But anything less than ideal was an invitation to write an essay rather than making a quick exit.

I had the feeling, knowing human nature and how we're all in a hurry these days, that whoever at Lyft designed this "user experience" would be perfectly happy to "train" us to just "go for the gold" (click the 5-star rating) so we could quickly escape. Makes for nice ratings results and great bragging rights -- although it doesn't really tell you anything of value about what's really going on. This is a lot like websites that continue to rely on clickbait and other cheap tricks to drive meaningless traffic.

The Lyft ratings system is playing off the exact same hurry-up mindset and ingrained behaviors that have quickly taught us to accept and acknowledge the consents and boilerplate Ts & Cs (terms and conditions) that we quickly click on at a million different sites, knowing full well that we haven't read or even taken away the slightest idea of what we just automatically and thoughtlessly agreed to. We do the same mindless and robotic actions when we like and share social media stuff that we absolutely haven't read but are so happy to pass on to our own universe of friends as an invitation to waste more of their time. But I digress.

Honestly, in the moment, I could have lived with a quick-click response, but I wasn't interested in a quiz. And, of course, if I was really in a hurry, I could have simply bagged the whole thing and not left a tip, which only ends up screwing the driver. Anyone who has ever abandoned an online shopping cart knows the feeling and the frustration. Ask too much of me, take too long, and I will happily take a hike.

So, in addition to encouraging essentially irrelevant but overwhelmingly affirmative feedback, a poorly designed survey system (which won't let you opt out) would likely end up costing the drivers money. And it wouldn't do anything material to weed out the drivers who actually needed to be doing something else. Maybe this was just an instance of sloppy design rather than something more malicious. But it sucked, in any case.    

And this whole situation reminded me of the many years I spent with car dealers who tried all kinds of incentives (free car washes, giveaways, special events, etc.) to encourage recent customers to return the dealer satisfaction surveys they would be receiving directly from the manufacturers so the dealers could "help" correctly complete them. You can just imagine how favorably the surveys turned out for the dealers who were answering the questions about their sales and service themselves.

Of course, this made the results suspect, but I think the message that the customers got from the whole manipulative process was far more damaging. If the dealers' actions were basically saying that no one really cared about the customers' honest opinions and evaluations and that the paperwork was just a game they had to play to placate the manufacturers, then why would the customers conclude anything but that the dealers were probably just as happy to try to put something over on them as well.

There's an old adage that still rings so true: people who will lie for you will eventually lie to you. These aren't people worth doing business with under any circumstances. Entrepreneurs often find themselves walking the thin line between the hard truth and the little white lies.  But for the people who want to go the distance, the choices are always quite clear because everything you do and all the choices you make are important part of your company's culture.  

If you tell the truth, you move ahead, and it becomes part of your past. If you lie, you live with it every day, and it becomes part of your future.

KAPLAN EXEC DIRECTOR HOWARD TULLMAN JOINS JD GERSHBEIN FOR 1ST ELECTRIC NARRATIVE PODCAST

You are cordially invited to attend the LIVE filming of the
BRAND NEW WEBCAST:

THE ELECTRIC NARRATIVE with JD GERSHBEIN
Amped-Up Storytelling with a Twist

JD Gershbein is partnering with Zacuto Studios in Chicago to produce this Web-based TV talk show (and future podcast) featuring the biggest personalities and most compelling storytellers in business, entertainment, media, sports, science, and the arts. The format is unscripted and conversational, shining the spotlight on guests who are willing to go deep, be relentlessly authentic, and have a little fun.

The Electric Narrative will be filmed in front of a studio audience at Zacuto Studios, located in Chicago's ultra-cool River North District. If you cannot attend in person, you can catch the show STREAMED LIVE ON FACEBOOK (details to follow soon).

EPISODE 001:
INNOVATION: PAST, PRESENT, AND FUTURE

Guests:
HOWARD TULLMAN, Executive Director, Kaplan Institute of Innovation & Tech Entrepreneurship, Illinois Institute of Technology
TOM KUCZMARKSI, Co-Founder, Chicago Innovation

NETWORKING & REGISTRATION: 5:30 PM - 6:30 PM
PROGRAM: 6:30 PM - 7:30 PM (or thereabouts)
RECEPTION TO FOLLOW

PARKING
There are metered spots available on the 400 West Ontario St block (less $ after 6PM). The closest lots, are at 430 West Ohio Street and 305 West Ontario St. Both are contracted with Spot Hero.

REGISTER NOW & SECURE YOUR SPOT!
(Yes, organizers typically say this to try and get you to register, but we really mean it. Attendance for this event will be capped and space is limited.)

BEVERAGES & LIGHT HORS d'OEUVRES WILL BE SERVED.

NOTICE OF FILMING & PHOTOGRAPHY: Your registration for this event acknowledges your understanding of this notice. By entering the event premises, you consent to interview(s), photography, audio recording, video recording and its/their release, publication, exhibition, or reproduction to be used for news, web casts, promotional purposes, telecasts, advertising, inclusion on websites, social media, or any other purpose by Owlish Enterprises (OE), Zacuto Studios (ZS), and all affiliates and representatives. Images, photos and/or videos may be used to promote similar events in the future, highlight the event and exhibit the capabilities of OE and ZS. You release OE and ZS, its officers and employees, and each and all persons involved from any liability connected with the taking, recording, digitizing, or publication and use of interviews, photographs, computer images, video and/or or sound recordings. By entering the event premises, you waive all rights you may have to any claims for payment or royalties in connection with any use, exhibition, streaming, web casting, televising, or other publication of these materials, regardless of the purpose or sponsoring of such use, exhibiting, broadcasting, web casting, or other publication irrespective of whether a fee for admission or sponsorship is charged. You also waive any right to inspect or approve any photo, video, or audio recording taken by OE and ZS or the person or entity designated to do so by either party. You have been fully informed of your consent, waiver of liability, and release before entering the event.

KAPLAN INSTITUTE EXEC DIRECTOR HOWARD TULLMAN SPEAKS AT BSHG CORPORATE CONFERENCE

WTTW RIVER TOUR WITH GEOFFREY BAER

BLAIR EQUITY CONFERENCE KICKOFF BY KAPLAN INSTITUTE EXEC DIRECTOR HOWARD TULLMAN

New INC Blog Post: Managing a Turnaround in Four Vital Words by Kaplan Institute Exec Director Howard Tullman

Managing a Turnaround in Four Vital Words

Rescuing a business from peril is alternately scary and invigorating. You need to make sure you go at it with a purpose and plan. Start with these basic concepts.

By Howard Tullman

Executive director, Ed Kaplan Family Institute for Innovation and Tech Entrepreneurship, Illinois Institute of Technology

@tullman

I've done a few major turnarounds in my career.  The stakes are always enormous, involving multiple millions of dollars, hundreds of jobs and thousands of related lives dependent on keeping those jobs and the businesses that created them whole. These ventures aren't easy and the tensions, uncertainties and emotions run very high and very hot throughout the process. This is not a burden that anyone takes on lightly and in many respects the feeling is exactly the same one that every entrepreneur has on a regular basis when he or she realizes how many other people are depending on them to make the right calls. In some cases, where just surviving is a major challenge, no one is looking for applause and kudos-- you're just happy to get out on the other side alive and in one piece.

Fortunately, each of these undertakings (never an especially great word to use in situations like these) was a success in terms of accomplishing most of what we set out to do. While I was plenty tough on the members of the management team and worse to the indifferent directors and investors who had created the challenges and the chaos (many of whom didn't hang around for too long), I was able to save nearly all of the jobs for the people who had been trying as hard as they could to make their businesses successful and to take care of their customers. It wasn't their fault the companies were in trouble, but ultimately their finances, their families and their futures were at risk. To a very large extent, it was on me to look out for them.

In one sad case, where the whole Dotcom world had just imploded, no amount of magic I could muster could put all of the pieces of Humpty Dumpty back together again. When a business starts out as mainly smoke and mirrors, it's most likely to end in tears and misery-- and this I-builder baby was no exception.  Chalk that one up to "experience," which to me is basically what you get when you don't get what you want. The Dotcom era didn't reward anyone's experience in any case because we all found ourselves in a place where no one had ever been before, and nothing properly prepares you for the first time. It was like feeling parts of an elephant in the dark - everyone had a different piece of the puzzle and no one could get their arms around the solution.

But at least I voluntarily chose to take on the task and I knew what I was signing up for and I had, to a large extent, control over my own and the business's destiny. In some other cases, and in some startups, you find yourself in the midst of a tense turnaround whether you planned it, desired it (almost never), anticipated it, or simply found that you couldn't ignore or avoid it. I've seen this particular movie a few times and it's even less enjoyable and more painful. But we bear on, boats against the current, borne back ceaselessly into the past.  

Nonetheless, the many trials and tribulations of the last few decades have supplied valuable, applicable, and effective lessons.  Should you find yourself in the turnaround tornado, willingly or not, here are four basic ideas to consider. I call them the 4 A's:  Attitude, Altitude, Action and Acknowledgment.

Attitude is where everything starts, starting with you. If you're gonna set out on this most difficult journey to make things better, you better begin with the complete conviction that it's worth spending the time and making the trip. You need more than a rationale - you need a level of enthusiasm, confidence and commitment that is completely contagious, along with an unrelenting passion and a demonstrable sense of urgency. If you don't fiercely believe in the dream and a better future, you won't be able to convince anyone else to join your crusade. You need to proceed as if success is inevitable. Otherwise, it's not worth the blood, sweat and tears that you will surely shed.

Turnarounds are all about a willingness to sacrifice what we have at the moment for what we could become. There's no certainty in these deals other than the guarantee that things must change and the knowledge that, if you don't keep going, you'll never get there. All great battles are lost in the middle, when the going gets toughest and the pain of the process overcomes the early passion and enthusiasm and presents real challenges to your persistence. You may be hanging by your fingernails, but you need to always keep your head up high. Your attitude ultimately determines your altitude.

Altitude is about aiming high and shooting for the stars. No one wants to sign up to be just okay or just as good as the next guy. If you're not planning on going all the way to great, why would you go at all?  Anyone can be average, but average is officially over these days. "So what" is no solution and you quickly find yourself slipping further into the swamp. You can be absolutely certain that there will be changes in the plan along the way and plenty of bumps and bruises as you progress, but to succeed you'll need to be stubborn on the vision but flexible on the details, and always looking ahead. Remember that someone always gets the best seat in the house. Why not you? And shame on you if you don't ask for it. If you don't ask, the answer is always "No".

You may not ultimately get all the way there, but thinking small and selling yourself short is a self-fulfilling prophecy. You've got to show your people a compelling vision and a clear path to achieve the desired outcomes. The trip won't necessarily be short (turnarounds always take longer and cost more than you hoped) or quick and easy, but the goals and the end game have to be important to everyone involved as well as ones that will make a real difference in people's lives. Once you know where you're headed, you've got to get busy.

Action is what brings the plan to life. Deciding on a course is nice but insufficient. Prompt action is absolutely essential. You can't win a race with your mouth. People pay far more attention to what you do than to what you say you're going to do. When you do things right, your actions speak so loudly that there's no need to hear what you've said and that's especially good news these days because no one listens to anything anyway. They learn by observing and by doing and you have to personally and consistently lead the charge.

Your actions need to be tightly focused, clearly defined, and carefully measured. Tell your people what's expected of them and what sacrifices will be required in order to accomplish what needs to be done. Hold the team accountable and keep them mercilessly on schedule because it's easy, amid the chaos, for schedules and deadlines to slip and for important things to get lost in the cracks. Don't worry at the outset about home runs and the long-term until you've addressed and resolved some of the most immediate fires. Take on the biggest problems first, but understand that even Superman couldn't solve most of them overnight. Short-term wins and early, even modest, successes help to build the team's confidence, improve morale, and restore long-lost momentum.  

Acknowledgment is basically all about the idea that nobody today does anything important all by themselves and it's critical that, from the very beginning, you appreciate and recognize the efforts, actions and step-by-step accomplishments of the key team members. Don't overdo it and don't spread it so thin and wide that it loses any credibility or value. Not everybody gets a trophy, but almost everyone will have an opportunity to make a real contribution to the cause that needs to be acknowledged. Silent gratitude isn't appreciated by anyone. 

The last key element in the entire process is trust. People are willing to be led on an uncertain journey as long as they believe that they're not going alone, that their leaders are right there beside them, and that the process and the pain will ultimately get them to a better place. As you take things apart, let people go, change the ground rules, and shake the foundations and the faith of the flock, you need to be sure that you also show them a willingness to renew and rebuild the business, a commitment to invest aggressively in a better future that they will share, and the courage to continue even in the face of opposition, obstruction, and negativity. A shared goal is an incredible source of power.