Joe Pine already alluded to the transformation economy in his updated “The Experience Economy” and has expanded that view in his latest book “The Transformation Economy: Guiding Customers to Achieve Their Aspirations”. Here is what I wrote:
Transformation economy
We are living more and more in an intangible economy, in which the greatest sources of wealth are not physical. We are moving to an economy in which beauty, amusement, attention, learning, pleasure, and even spiritual fulfilment are as real and economically valuable as steel or semiconductors. In the Transformation Economy, manufacturers will, of course transformationalise their goods, design and sell goods that help customers become something distinct. Here, the focus moves from using to the user. How does the individual change while using the goods? Find out what customers aspire to. Think of the diagnosis of your offering as a description of from–to.
You need to care
The first requirement for workers in a transformation business is that they truly care. That means authenticity and transformative purpose. It requires leaders to be willing to sacrifice their own needs in favour of employees’ needs, and for employees to sacrifice their own needs to eliminate the sacrifice of customers. Making you loveable.
This is marketing
In the forthcoming Transformation Economy, aspirants will entrust their futures only to those with whom they share a common worldview. This eventually leads to companies that practice worldview segmentation. Which is why, after reading “The experience economy”, you should read “This is marketing“. Combining theatre, immersive and memorable with being super-niche, fanbase and a clear choice of who you are and what you stand for.
Morality
No longer can an enterprise take an agnostic attitude toward moral rightness and wrongness, hiding from such sensitive issues beneath the cloak of mere goods and services. All enterprises promote a worldview. Transformation issues cannot be avoided. And transformations turn aspirants into “a new you,” with all the ethical, philosophical, and religious implications that phrase implies. All commerce involves moral choice. Read “The Zeronauts“.
Wisdom
Today, the only thing better than being in the business of staging experiences is being in the business of guiding transformations. The very idea of transforming people (or companies) demands that we think about and apply a word little used in businesses today: wisdom. Nothing is more important, more abiding, or more wealth-creating than the wisdom required to transform customers.
Chika
More and more companies, and the people within them, are moving up the value chain to supply “chika”. Translating somewhat awkwardly into knowledge-value, this “means both ‘the price of wisdom’ and ‘the value created by wisdom. In the new society that is now forming, the lifestyle that will earn the most respect will be one in which the owner’s conspicuous consumption of wisdom (in the broadest sense) is displayed, while the products that will sell best will be those that reveal their purchaser to be a person “in the know.”
The wisdom economy
We are entering a new phase of civilisation in which the value attached to knowledge and wisdom is the driving force. From experience to transformation economy, and from transformation economy to wisdom economy. And that is good news.
Effectual outcomes
In his new book, Joe Pine suggests that the arc is now moving from experience to effectual outcomes. “Reshuffle” frames it as RaaS. Results as a Service. Service is no longer transactional but truly transformational. From outside service delivery to inside service delivery. Servicing the psyche. Guidance, alchemy, forever memorable, creating the new you. Where your employees are the guides.
So the first questions to ask then are
- Can you imagine being in the business of guiding transformations?
- What business are you really in?
- Who are you guiding?
Perfect as the new normal
What to do when even customised personal service gets commoditised (with the current technology developments, that is a distinct possibility). A “been there, done that” on steroids. The expectation levels of your customers will go through the roof. And you will need to think about that; where are you on the experience curve at the moment?. Memory will need a new dimension when frictionless and deeply personal becomes the new normal.
So what is transformation?
They are effectual outcomes that change individuals in a lasting way. Where experiences are memorable, transformations are effectual. And where experiences are revealed over a duration of time, transformations are sustained through time. It is the investment of your clients’ time in bettering themselves. Ensuring that the currency of time, is well spent.
The long tail of transformation
The really good news is that transformation has a (very) long tail. Preparation beforehand, reflection afterwards, and integration on an ongoing basis. Think about it. What is the lifetime value of transformation?
Human flourishing
What is the value of human flourishing? Whatever your business is, your economic offerings almost certainly foster human flourishing, at least to some extent. The higher up the Progression of Economic Value you go, the more you can do for your customers, and the more economic value you create with your enterprise. You can foster human flourishing both individually and collectively. You can lead businesses to thrive. And you can help communities blossom.
Words
Health, well-being, wealth, knowledge, wisdom, purpose, meaning, prosperity, aspiration, changing self-identity, discovery, desire, intention, refinement, ambition, cultivation, etc.
Levels of experiences
There’s a difference between a transformative experience and a true transformation: the outcome has to last. Transformation moves you from memorable to meaningful experiences. Meaningful experiences add a level of significance to us as individuals. Such experiences connect with us more strongly, particularly by appealing to our humanity, our personal sense of purpose, and our identity. From aspiration to metamorphosis. First, there is a transformative cycle and then an integrative one, with the latter taking far longer than the former. The long tail.
Transformational depth
When the transformation is deep, highly personal, and substantial, involving profound identity change, the aspiration is best described as metamorphosis. Metamorphosis refers to a longing for identity change. That means that after such a transformation, you no longer recognise the person you once were.
Transporting
When you create memorable and meaningful experiences, you have the opportunity to make them transporting. A different dimension if you want. Instilling wonderment, shifting you beyond the present moment, and moving you metaphorically to another realm, to a transcendent and liminal space and time.
Peak experience
Peak experiences enable individuals to transcend their daily lives through euphoric events, including getting a “runner’s high,” having a eureka moment, undergoing a religious encounter, feeling a burst of love, reading an inspirational book, or playing moving music. In other words, flow or awe (or both). The transporting experience of awe is the epitome of immateriality and value.
Other questions/tips
- Do the interactions that customers have with your business and employees tend to be consistent each time, or do they ever take on an intensity that excites and engages?
- Is the experience authentic, cohesive, robust, personal and dramatic?
- Have you mapped the hero’s journey of your product?
- Have you created a dramatic structure/story curve?
- Have you conducted a linguistic analysis of all company materials to map authenticity?
- Introduce a Net Simpler Score (NSS) to measure its impact on customers.
- Map the jobs to be done (break them down into aspirational, functional, emotional and social jobs).
I had to think hard
I had to think long and hard about this book (which is the sign of a good book). I am a strong believer that purpose-driven companies are the future. To become firms of endearment, merging social with business, where everybody matters and moves to become evolved enterprises.
The product as the angle
Joe Pine approaches this not from an organisational perspective but from a product angle with flourishing as the theme. Hard to disagree. It makes sense that experiences cannot stay memorable if they are not ultimately transformative. Super interesting as a frame for product extensions, particularly if you consider how technology can help you in achieving that (AI and mixed reality would be particularly relevant).
This is your opportunity
Only a small fraction of companies will become or be able to be truly transformative. In a world where tech will level all playing fields, this is where your opportunity lies. Creating the perfect fusion of humanity and technology, helping your customers flourish with transformation as the product (extension) lens. Discuss this with leadership team. Decide on your moves. If you need help DM me (or contact Joe Pine, the master himself).
