Every day we do things based upon habits and norms established in our community, companies, and culture, often times without thinking about them.  They seem so fundamental to us that it’s rare we even notice them.  While these norms help a group to function together smoothly, it’s important to recognize the norms we adhere to, and challenge them to ensure they encompass the best possible solution.  It’s easy to see the norms being followed by people whose norms differ from ours, for example other countries or cultures, but it’s much more difficult to identify them within our own society.

I’m currently reading (actually listening to) The Wisdom of Crowds, and have been amazed by the norms identified and discussed in the book, partially because they are things I’d not yet considered as needing to change.  For example, the author discusses supply and demand, and the general economic law that when demand goes up relative to the supply, the cost will increase.  However, there are a number of situations where this is not the case, in large part due to following norms that may have been established decades prior or no longer apply.  He mentions a movie theater, where (at least in America) all the movies cost the same amount, regardless of the popularity or age of the film.  Sure, there are “dollar” movie theaters, but within the main theater, all movies are treated equal.  How much more revenue could the theaters receive, if they priced the movie appropriately based upon the demand, thereby allowing for less popular movies to be cheaper, hopefully increasing the number of viewers?  People will pay $4 to rent a movie, but not $10 to go to the theater.  There has to be a cost between there that will attract more viewers.  Until the movie is removed from the theater, their costs to show it are fixed, yet they don’t maximize the potential by adjusting the price, because that’s how it’s always been done.  Previously however, films used to be released to A and B theaters, which charged different rates based upon the quality of the movie.  Today, all movies (assuming they make it to the theater) are effectively charged as if they are A quality, despite the demand for them.

What norms are you following, and are they you’re best option?  Are you losing revenue by following norms that may no longer apply to your business or situation?  Today in our global environment, what norms may your customers be accustomed to or be expecting that you may be unaware of?  Take a moment to stop and think the next time you do something out of habit, to see if it can be improved.  Also, take a look at other cultures from your own, to see what they may be doing differently.  It’s amazing how different a decision people can make when coming from a fundamentally unique perspective, simply because of the norms established hundreds of years earlier.