Note: I’m proud to have co-authored this post with Jason Hreha, the founder of Dopamine, a user-experience and behavior design firm. He blogs at persuasive.ly
Yin asked not to be identified by her real name. A young addict in her mid-twenties, she lives in Palo Alto and, despite her addiction, attends Stanford University. She has all the composure and polish you’d expect of a student at a prestigious school, yet she succombs to her habit throughout the day. She can’t help it; she’s compulsively hooked.
Yin is an Instagram addict. The photo sharing social network, recently purchased by Facebook for $1 billion, captured the minds of Yin and 40 million others like her. The acquisition demonstrates the increasing importance–and immense value created by–habit-forming technologies. Of course, the Instagram purchase price was driven by a host of factors including a rumored bidding war for the company. But at its core, Instagram is the latest example of an enterprising team, conversant in psychology as much as technology, that unleashed an addictive product on users who made it part of their daily routines.
Like all addicts, Yin doesn’t realize she’s hooked. “It’s just fun,” she says as she captures her latest in a collection of moody snapshots reminiscent of the late 1970s. “I don’t have a problem or anything. I just use it whenever I see something cool. I feel I need to grab it before it’s gone.”
Quick: what’s the biggest bottleneck in your company? Yup, we both know it’s the Information Technology department. Let’s face it, nobody likes IT people. For all of their technical wizardry, IT is where good ideas go to die. We follow their onerous documentation requirements and patiently wait in line through endless backlogs, yet somehow IT still can’t seem to get their work done.
Hating the IT department is a common sentiment in almost every company big enough to have such a group. But the truth is, it’s not the IT people’s faults. In fact, a despised IT department is a symptom of a CEO who doesn’t understand psychology. It is a corporate dysfunction for which management, more than anyone else in the organization, is responsible.
TO CREATE IS HUMAN, TO IMPLEMENT DIVINE
Why does the IT department drive everyone nuts? The answer lies deep in our primal need to contribute to our tribe. As Logan, King, and Fischer-Wright pointed out, the workplace is our modern-day clan. We come to the office with the same mental hardwiring we acquired 200,000 years ago when our species emerged. Back then, tribes with individuals creative enough to make new discoveries survived better than less innovative groups. Today, our workplace is our tribe and our impulse to create is no less important. Evolution gave us the mental machinery to seek to improve the welfare of our social groups through discoveries made by each individual.
The truly great consumer technology companies of the past 25 years have all had one thing in common: they created habits. This is what separates world-changing businesses from the rest. Apple, Facebook, Amazon, Google, Microsoft, and Twitter are used daily by a high proportion of their users and their products are so compelling that many of us struggle to imagine life before they existed.
But creating habits is easier said than done. Though I’ve written extensively about behavior engineering and the importance of habits to the future of the web, few resources give entrepreneurs the tools they need to design and measure user habits. It’s not that these techniques don’t exist — in fact, they’re quite familiar to people in all the companies named above. However, to the new entrepreneur, they largely remain a mystery.
I’ve learned these methods from some of the best in the business and put together an amalgamation of them that I call “Habit Testing.” It can be used by consumer web companies to build products that users not only love, but are hooked to.
Habit Testing fits hand-in-glove with the build, measure, learn methodology espoused by the lean startup movement and offers a new way to make data actionable. Habit Testing helps clarify three things: 1) who your devotees are; 2) what part of your product is habit forming, if any; and 3) why those aspects of your product are habit forming.
It’s time to abolish the reference check. The unpleasant process of calling up a job applicant’s former boss to gab about the candidate’s pluses and “deltas” is just silly. Maybe if we all just agree to stop doing it the practice will go away, like pay phones and fanny packs. Instead, I’ve learned a better way to hire that leverages a universal human attribute—namely, the fact that we’re all lazy.
What’s my beef with reference checks? They don’t accomplish the job we intend them to do. In a startup, you can’t afford to hire B-players. But reference checks, which are intended to do the screening, fail to eliminate these candidates who are just so-so. This happens because the person giving the reference has no incentive to say anything but good things about the candidate. Telling the whole truth, warts and all, could expose the former boss to a defamation lawsuit. But legal action aside, no one likes to speak poorly about an ex-colleague. It’s bad karma and just feels icky.
Instead of asking a reference to call you and spend an awkward half-hour chitchatting about pretty much nothing, try a technique I’ve come to call it the “average-need-not-apply” method. Though I’m not sure who invented it, the approach was taught to me by Irv Grousbeck at Stanford.