I knew a guy in Toronto who was a one-man wrecking crew when it came to creativity.
We were obliged to include this guy in the “brain storm but he could be relied upon to introduce the forces of entropy to every debate. His techniques were many and highly effective: questioning every term, doubting every premise, refusing every potential moment of departure. This guy was the dark star, the collapsing sun, of idea generation.
We all know people like this. We have all been obliged to work with him. We have all suffered his intellectual predations.
The question is “why? Whats he doing here? Why does the corporation, the academy, the organization put him with him? Why do we not have permission to murder him in his cubicle?
One chilling possibility comes in a splendid comment from Steve Postrel. Steve suggests that all corporations generate more ideas than they can possibly use. Perhaps, we might surmise, they need Oak trees that poison the ground around them. Say it aint so. Surely corporations need all the good ideas they can get. And surely those of us who work for them find our real joy in thinking these up. Lets hope its not an Oak tree effect.
The trouble with these guys (and gals) is that once they get in to a corporation they begin to use its resources to defend themselves against reproach. They know they are without talent, but they can spot it in others. And then they dedicate their careers to making sure that opportunities for comparison are few and far between. Thus does bad drive out good.
Heres the really weird thing. We all know these people exist. We all know what they look like. We all know the damage they create. But we do not have a term with which to call them, a diagnostic with which to identify them, or a HR method of with which to extract them.
When are we going to name the elephant? How much longer may these enemies of the state continue to operate with impunity? I would be grateful for comments that offer names for the elephant. We need to arm those people sitting in committee meetings with a term that can be whispered in the hall way, written on notes, smsed to colleagues and otherwise pressed into service. Only thus can we hope to name them and shame them.
Cribbing from Hollywood, I wondered if we could do something with Gods and monsters. We would of course be the Gods. They would just as evidently be the monsters. Dark star, as above, might work. Anti-matterers? Anti-mutterers? Idea jammers. Right wankers? For God sake, help me.
Intel has stumbled. The stock price has declined 25% this year. The company has cancelled a succession of high-profile projects. The competition, Advanced Micro Device, has taken a lead or two in product development. For two decades the most formidable Silicon Valley company, Intel suddenly looks mortal.
No mystery here. Intel is caught in an age-old difficulty: making the transition from a technology-centric company to a consumer-centric one.
As long as the game was about faster chips, Intel was preeminent. The corporate culture was dedicated to very smart people making very fast chips. In the words of the New York Times, “Until recently, selling Intel chips was easy: faster was better.
But now the industry is becoming consumer centric. Everyone, IBM and HP, have taken a bead on the home and especially the living room. As Fred Zieber says, “There may be a tremendous global war for control of the living room. For its part, the NYT says, Intel now seeks to make “complete systems aimed at both computing and consumer electronics markets.
What a difference the consumer difference makes. When technology-centric, the corporation can turn in on itself. But when consumer-centric, the corporation must open up to who the consumer is, what the consumer needs and how the technology will be used. In the language of the Intel motto, its no longer “all inside.
To its credit, Intel understands the importance of the technology-consumer transition. In May, it will appoint its former head of marketing, Paul S. Otellini, as CEO. Dan Hutcheson, president of VLSI Research Inc., says, “As [Otellini] came into power, Intel tried to become a more aggressive marketing company. Otellini has called for a consumer orientation.
But its a tough transition and lots of charlatans who would be happy to help. I did a project for a company, one dominated by engineers, and I watched in astonishment as they had called in a corporate culture guru who was there to help make them more sensitive to the consumer. The gurus “idea was that these engineers needed to be more empathic, intuitive and feminine.
Oi! Why is it that marketing types keep insisting that the secret of consumer centricity is to move from the left brain to the right brain, from rationality to intuition, from pragmatism to dreaminess, from maleness to femaleness.
In fact, there is no important difference between the way marketers and engineers think. The best ones are identical. Both of them like to go to the edge of what we know and peer over. Both marketers and engineers are, to use the famous phrase of Levi-Strauss, “searching after that other message, the one not now implicit in the code.
Contrary to popular opinion, engineers may be more creative than marketers. They move from orthodoxy to creativity without a seconds thought. No need to urge these people to ‘think outside the box. They spend their lives there. Or, as my client said with, anxious disapproval of her engineering colleagues, “Every time I live the room, they start building a machine. Precisely, machines is how they think. I’ve also worked with HP engineers and they were Teflon, sliding between ideas with not a trace of effort or difficulty.
But, finally, there is a challenge for Intel here. To be consumer centric, they must add new rules of discovery. Its still necessary to make chips go faster. (Though, God knows, this should be enough. IBM is promising a chip called “Cell that performs 16 trillion mathematical operations a second. Yes, ‘trillion.) Its now necessary to find out what the consumer wants to do with this extraordinary processing power. The living room may be the new competitive objective, but it is also from an engineering point of view terra incognito.
What is happening in the living room cannot be coxed from a slide rule, or its latter day equivalent. It cannot be surmised from our own living room. It must be found out, and this means leaving the rationalities of the lab. Now its necessary to step off orthodoxy twice, once from technological edge AND again from the domestic edge. The first takes us into the realm of pure technical possibility. The second into the digital home the consumer is in the process of creating.
Forget left brain and right brain, rationality and intuition, engineers are plenty lateral enough. But they must now factor in the end user and this mean taking up residence in the consumers life, or at least the consumers neighborhood, or at least paddling by from time to time in the ethnographers dinghy.
This is another way of saying that rocket science just got a little more difficult. Consumer centricity requires of wedding of the engineers creativity with the consumers creativity. Not so very difficult, but it is something that requires a substantial change in the present rules of engagement.
Can Intel do it? If they can make itself a global leader in semiconductors and creates revenues of more than $30 billion a year, I guess the answer has to be yes. The only thing that can screw things up is the advice of a marketing consultant.
References
Bulkeley, William M. 2004. IBM to Unveil a Powerful Chip for Home-Entertainment Market. Wall Street Journal. November 29, 2004. (for Zieber quote)
Markoff, John. 2004. The Disco Ball of Failed Hopes and Other Tales From Inside Intel. New York Times, November 29, 2004. (all other quotes and details, gratefully acknowledged) here
Sanctuary is flourishing where other music labels are not. The secret: they buy up artists like Morrissey and Iron Maiden in late career. Bundle enough of these bands together and, hey presto, youve got a profit.
Profit is a somewhat novel idea for the rest of the music biz. EMI and Warner Music prefer the blockbuster model. They sign lots of acts and hope that a handful will do well enough to recover costs and make some money. The trouble is that musical tastes have fragmented terribly, so they have to place many more bets than before. Second, music tastes change more quickly, so its harder and harder to pick the winners. As labels are finding it out, the hits no longer always pay for the misses.
Could Sanctuary be on to something? They have found a way to get someone else to make the upfront investment and to identify the stars. And they have found a way to extract these modest earners from their labels. Happily, the industry is so hit crazy, it doesnt work very hard to keep them.
Its as if Sanctuary has borrowed a page from the beer industry. The legendary Paul Kalmanovitz made a fortune buying up ailing brands, slashing costs, and letting the property “decline profitably. As long as there is enough altitude left in a brand or band, it isnt very difficult to get in cheap and ride the thing out.
But Sanctuary has an advantage that the beer biz doesnt have. Consumers so embrace their favorite bands that they stick tight to them forever. Only death will separate them and even then they want Morrissey played at the funeral.
Some people in the music biz think this is the new business model. Merck Mercuriadis, the CEO of Sanctuarys US operations, believes that “most labels will develop around the Sanctuary business model. Really? If everyone embraced the Sanctuary model, who would fund the search for hits in a fragmented, changeable market? More probably, someone at EMI is going to take a look at Sanctuary and imitate it. EMI will then be in a position to capture the value they have created, and they will have new revenues with which to fund their search for blockbusters.
Plainly, the music biz is reinventing itself, if only in bits and pieces. Eventually it will piece these together to give itself better coverage across the adoption curve. At the front end, they need a better “farm team system, to pick up and nurture the startups with smaller, more finally placed, investments. (And there must be a little label out there that has solved this problem.) At the back end, they will tack on a Sanctuary system to capture all the value that comes from their early h”bets.
Youd think they would have figured this out by now. On the other hand, as Steve Jobs points out, they still call themselves record executives.
References
Thompson, Robert. 2004. Sanctuary Plays Its Own Tune. The Financial Post. November 23, 2004, p. FP3.
Walker, Rob. 2003. The marketing of no marketing. New York Times. June 22, 2003.
Yesterday, I went to my first Thanksgiving dinner in the US. It was crowded with relatives, groaning with food, noisy with children, animated by football on TV and in the yard, lively with table talk, and pretty darn joyful.
On the table sat a plate (as above). The internal oval itemized some of the things Americans are thankful for: love, family, peace, friends, hope, health, wisdom, comfort, home, happiness, success, bounty, and freedom. A platter piled high, as it were, with thanks.
Canadian thanksgivings are less inclusive. In 1957, Parliament declared Thanksgiving “a day of general thanksgiving to almighty God for the bountiful harvest with which Canada has been blessed.” No platter called for here. By and large, Canadians are not thankful for “everything. They are thankful for harvest, defined literally or somewhat more broadly. Family, health, home and bounty might come into it. Love, peace, friends, hope, wisdom, comfort, happiness, success, and freedom probably not.
I think the plate would be out of place on a Canadian table. I would bet that, in many Canadian homes, it would draw comment, even derisive comment, if not at table, then in the car on the way home. “Did you see that plate? She is really overdoing it.
So whats the diff? I think its that Americans tempt fate more often. They risk more, as individuals and as collectivities. They generate more “outcomes. In any given year, there is more “in play. Happiness is, as they say, pursued. Freedom exercised. There is less grey middle. Less “same old, same old. Love, peace and freedom are, in a dynamic world, hard won both in the long term and the day to day. So at the American Thanksgiving, more thanks are called for.
Much of Canada has locked itself into a kind of stasis. Things change under protest. To drag out that old psychological stand by, its a matter of the “locus of control. I think more Americans than Canadians see this vested in the individual and the moment. Canadians are accustomed to having the world act on them. They respond as they must. Thanksgiving day is not a time to celebrate outcomes, so much as survivals. You can hear them thinking at the dinner table, ‘the world missed again.
This could very well be the turkey talking. Or it may be simple gratitude. But freedom, thats something to be thankful for.
Well, this is interesting. A report yesterday in the Wall Street Journal that suggests Bush should be seen as the Insurgent President.
Fred Barnes says that, when it comes to the Washington establishment, Bush owes little and cares less. (Barnes defines this establishment as ‘the permanent bureaucracy, much of the vast political community of lobbyists and lawyers and consultants, leftovers from Congress and earlier administrations, trade groups and think tanks, and the media.”) Barnes says Bush has refused establishment blandishments and withheld for them both olive branches and state dinners. Unlike previous presidents, including his father, George W. likes to “infuriate the establishment, most recently by accepting the resignation of its one representative on the inside, Colin Powell.
Apparently, Bush is possessed of a reformational zeal.
The president is girding for battled. Hes aiming to consolidate control of his administration, drive out recalcitrant (read: establishment) elements and make the permanent government heel, especially at the CIA and the State Department.
It is hard to know, and Barnes does not very precisely say, what the Bush agenda will be. But I cant help wondering whether he might not try to do to Washington what he did to the military. As we know, the military, already in the throes of reform, deployed a radically different strategy in Afghanistan and Iraq. The so called “force transformation created a new approach to warfare.
The basic notion behind military transformation is that information technologies allow you to substitute information for mass. (Stuart Johnson, research professor, at the Center for Technology and National Security Policy at National Defense University in Washington, from the MIT article below.)
One example of this approach: tanks weighing 64 metric tons could be largely phased out, giving way to lightly armored vehicles. These may forgo massive size and strength because they are directed by large and fine bodies of information gathered by new sensing, targeting, imaging and communications capabilities.
It is interesting to think about what would happen to the establishment if it was subject to the new principles evident in military (and corporate) reform: flatter hierarchies, devolved power, less mass, more information, more distribution, and an organization that is considerably smaller, faster and nimbler, as a result.
Certainly, this would take care of the growing unease in some Republican camps that Bush is a “big government” conservative. It would also bring the US government into line with the reformation that is taking in and of the corporate world. Just wondering.
last note: I am taking a fair amount of heat for blogging so soon after my wedding. I thank friends and readers for their solicitude, but Pam and I don’t go for our honey moon for some months now. In the meantime, I intend to blog as always, Pam’s suggestion of medication and therapy notwithstanding.
References
Barnes, Fred. 2004. Bush the Insurgent. Wall Street Journal. November 23, 2004, p. A18.
Talbot, David. 2004. How Tech Failed in Iraq. Technology Review: MITs magazine of innovation. November. Pp 36-44.
[M]ore often those [young Muslim] girls [living in France] were under orders [to wear the veil] from their fathers and uncles and brothers and even their male classmates. For the boys, transforming a bluejeaned teen-age sister into a docile and observant “Muslim virgin was a rite de passage into authority, the fast track to becoming a man and, more important, a Muslim man. For the girls themselves, it was the beginning of a series of small exemptions from Frenchnessno sports, no biology, no Voltairethat in the end had nothing to do with diversity and everything to do with isolation. It was also a license for violence. Girls who did not conform were excoriated, or chased, or beaten by fanatical young men meting out “Islamic justice. Sometimes, the girls where gang-raped. In 2002, an unveiled Muslim girl in the cite of Vitry-sur-Seine was burned alive by a boy she had turned down.
Manifestly, this treatment of women is an attempt to achieve power and assert control by a group that feels itself dispossessed of power and denied control. I dont know the historical and cultural details that help explain why young Muslim women proved the victims in this case. It is usually a more “other other: African Americans for red necks in the American south, Francophones for Anglo Canadians, the Irish for the English, teens by adults, immigrants by the native son. Usually, the other is an outsider. It is not usually your sister.
But we can say two things from an anthropological point of view.
First, this is a fateful enterprise that never works. Control of this kind never stills the anxiety that feeds it. As Eldridge Cleaver pointed out in Soul On Ice, this anxiety renews itself. The more you seek to control the other, the more power you give them. And the more you must seek to control them.
Second, any attempt to control the other puts you hopelessly at odds with the Western experiment in openness. This experiment depends upon a willingness to endow everyone with the same opportunities for experiment, with equal access, in the French case, to sports, biology and Voltaire. The moment you insist one group may not have this access, you turn away from your own opportunity for openness. Effectively, you deny yourself the very thing you seek to deny others.
Its as if openness has to happen entirely, if it is happen at all. This is why it never works to say, we are economically open, but not culturally so (as a certain part of the Right is inclined to do) or the converse (as a certain part of the Left is inclined to do). It is difficult to do by halves. (Though I believe that in the early days of experiment, this is precisely what happens. It was, I think, only the gentleman who was allowed to take part in the beginnings of Englands scientific revolution.)
Its ironic that this experiment in closedness is taking place in France, a country and culture that did so much to fund the Western feeling for openness, but that is not now a place a place of exceptional economic or cultural ferment. It may be that there is a cascade at work here: that Muslim boys are doing to Muslim girls what French racists did to them. And this would make the attempt to refuse the veil in public schools a kind of full circle and potentially a renewal of the cascade. France may choose. And they are not choosing only for themselves.
References
Cleaver, Eldridge. Soul on Ice.
Kramer, Jane. 2004. Taking the Veil: How Frances public schools became the battleground in a culture war. The New Yorker. November 22, 2004.
Wow, I can’t tell you how thrilling it is to host a blog that gets comments as good as the ones that came in yesterday. Yes, I can. It’s thrilling. Thank you.
Somewhere in the big book of rules, I think it says that a man may not blog on his wedding day. And this is my wedding day. Plus, I have a hangover the size of Baffin Island. (Note to self: you cannot replace all your bodily fluids with red wine. Stop trying.) So I will keep this brief.
SomeCallMeTim, yesterday in a comment, accused me of conflating the Left and the Democratic party, and he is of course right. Many dems regard the corportion is a tolerable thing or a necessary evil. But I am not sure you can run the country if that’s all you think it is.
As Gabriel points out, the state now defers to the corporation because the latter can do things a) that must be done, and b) that the state is demonstrably bad at doing. Indeed, we might see the diminished regard with which “waitresses in Wyoming” regards the state as a cold eyed recognition that the state grows worse at doing anything as the corporation gets steadily better at doing everything. The faster and more dynamic the world becomes, the more this is so.
I have sometimes wondered to myself whether the tax revolts and reticence that have done so much to advance the Republican cause are not so much a refusal to “share,” as they are unwilling to fund incompetence (or programs that have a way of funding the problem they are supposed to fix). Or, to put this another way: if governments were more efficient, I think every tax payer would be prepared to be more generous.
To return to my point (and I believe I have one): Achbar’s zany view is the strong form of a Democratic disability. It is, to this extent, symptomatic of a larger inability to reckon with what others take to be straightforward. The much vaunted state is not very good at what it does, and as long as this is so, those who would be its champion put themselves in a awkward spot. They must fight their way up-stream against a current that grows ever stronger. We used to be talking the Hudson River. Now it’s the Mississippi.
The Democrats are inclined to see the corporation as cruel, opportunistic, and when it can get away with it, exploitative and abusive. In this view, only the state can make the world a kinder, gentler place. But as the economists are good at showing us, it is out of the dispassionate and interested play of the marketplace that good comes, first individual, second, corporate and third collective. To vilify the corporation or merely to regard it as a necessary evil, so misses what others take to be unexceptionable as to put the Dems badly out of touch. (Or, this could be the hangover talking.)
Could I end on a related point that emerged last night when I was trying to replace my bodily fluids. We were talking about the recent election and at some point, a truth descended. If you could have only one phrase with which to identify the characteristic difference and difficulties of the Democrats and Republicans, it would be this: the Democrats are the party of principle and the Republicans are the party of pragmatism.
No doubt, this is well known, perhaps well worn, but with all that wine it carried the force of a revelation. It did so because it showed how difficult is the Democratic position at its heart. The party of principle must be “big tent,” attracting and accomodating many causes. This means you will be “steered” in part by people driven by righteousness and this is never the road to the center. Still worse, every time the Party fulfills its purpose, and stands for principle, it must necessarily take a counter-hit of sometimes equal proportion. Now that both sides are mobilized, there is no “silent majority,” no red state quiescence in the face of coastal presumption. Your principle will bring out your people and your opponents, sometimes in equal measure.
Republicans (setting aside the religious Right, who are, of course, all about principles of their own), have a vastly easier row to how. They merely insist on what is necessary. They act, that is to say, in the spirit of the corporation, out of the spirit of pragmatism that does not displease quite as necessarily as does principle. The world may grumble, but it will sometimes go along.
The upshot here, again from a strategic point of view, is that the Democrats must find someway to make the necessary world the agent of the desirable world. They must find a way to make the real an engine of the ideal. I believe this cannot happen when they continue to hold the corporation, that preeminent agent of the necessary and the real, in disdain. (John Deighton, Cheryl Swanson, Debbie Millman and Wodek Szemberg were party to this conversation. I don’t mean to suggest that they all subscribe to this view. And I don’t know to whom the credit goes.)
Ok, now to get ready for the wedding. That’s the McGill University chapel above. In a couple of hours, it will be filled with 100 people and a whole lot of joy. (Thank you, Pamela.) Now to figure out how to do a bow tie. Why the heck didn’t I buy a clip on? Apparently, principle still sometimes wins out over pragmatism.
In the last few days, we’ve been talking about the differences between Left and Right, and the great chasm that exists between. One strategy proposed for a rapprochement was to look at the assumptions of the two groups, that they might cultivate a clearer idea of the one another.
In todays post, I want to examine an artifact from the Left that help illuminates one of its characteristic point of view. Lets consider the recent documentary called The Corporation.
It was customary in another time to speak of the kings ‘two bodies. One of these was the actual, corporeal form of the monarch, his Body natural. The other was his “Body politic, consisting of “Policy and Government. A literal rendering of this notion appears in the frontispiece of Hobbes Leviathan which shows the ruler in his Body politic, a monarch made up of the many bodies of his subjects.
This notion that an organization is a kind of body comes down to us in the present day in the term “corporation. The Coca-Cola Company, Proctor and Gamble, IBM, these are bodies, too.
Mark Achbar and his colleagues had the nutty, but original idea of taking this notion one step further. If the corporation is an entity in its own right, a body fashioned from the bodies, ideas, Policy and Government in which it consists, we may see it as a person. (This is the monarch re-membered, as it were.) And if the corporation is a person, might it not be judged as a person? Achbar and his crew decided to assess the corporation according to the diagnostic supplied by the World Health Organization and the Manual of Mental Disorders.
To more precisely assess the “personality” of the corporate “person,” a checklist is employed, using actual diagnostic criteria of the World Health Organization and the DSM-IV, the standard diagnostic tool of psychiatrists and psychologists. The operational principles of the corporation give it a highly anti-social “personality: It is self-interested, inherently amoral, callous and deceitful; it breaches social and legal standards to get its way; it does not suffer from guilt, yet it can mimic the human qualities of empathy, caring and altruism. Four case studies, drawn from a universe of corporate activity, clearly demonstrate harm to workers, human health, animals and the biosphere. Concluding this point-by-point analysis, a disturbing diagnosis is delivered: the institutional embodiment of laissez-faire capitalism fully meets the diagnostic criteria of a “psychopath.
This undertaking demonstrates several of the characteristics of the Left. It shows an imagination and intellectual agility. Whatever we might think about the outcome, as a thought experiment, this is kind of fun.
It also shows, I think, a kind of desperation. Here is the Left in its characteristic search to find some way to bring capitalism under control.
In the 1950s, American intellectuals rose up to declare suburbs bankrupt, TV a waste land, and commercial culture an abomination. The Man in the Grey Flannel Suit came under particular attack for his moral failings. In this view, post-war prosperity was a trick. Corporate man lived a lie.
A couple of decades later, a death certificate for “the subject” was issued by leading European intellectuals. The certificate, written in haste and triumph, reads something like this:
place of death: Paris time of death: 1972 attending physicians: Foucault, Derrida, and Lacan
This was a patent challenge to the notion of individualism on which capitalism depends. The Smithian view of the marketplace depends on rational individuals engaged in acts of exchange. Vaporize the individual, and we vaporize the great presupposition on which the state depends. Corporate man was a fiction.
Several decades later, the ecological movement declared corporations the villain of the piece. A fragile, blue planet was now being “raped for profit. Corporate man was a sexual criminal.
Achbars latest foray suggests a new, more dramatic undertaking. With the help of the DSM-IV, Corporate man (make that Man) was a psychopath.
This vilification of the corporation and its occupants is, of course, at odds with the more conventional view of the corporation. According to this view, corporations are extraordinary creatures, capable of things that states and their governments cannot do. Indeed some would say that as corporations become Complex Adaptive Systems they are the only creatures capable of contending with the new dynamism of the world. (Fed Ex would be merely one case in point. Dell, another.) In sum, the Right and the center are now inclined to look on the corporation as one of the instruments that helps make a difficult world a manageable place.
There is a deep difference here that needs examining. Please forgive my impatient treatment of the position of the Left. (Please also forgive my supposing that Achbar speaks for everyone of the Left.) My sympathies are clear.
But I think this treatment does help to clarify how deep are the differences between us and how much we have to do.
References
Kantoriowicz, Ernst Hartwig. 1957. The king’s two bodies : a study in mediaeval political theology. Princeton: Princeton University Press.
Carolyn Parrish, Member of Parliament, has been thrown out of the Liberal Party caucus for her several, calculated insults against US president George W. Bush.
Several days ago, she appeared on a Canadian comedy show with a Bush doll under her booted heal.
Ms. Parrish drew notice on this blog August 28 in a post called Carolyn Parrish is a big fat idiot (on anti-Americanism in Canada). You may find it here.
There were over 100 comments on this post Many of them help illuminate the Parrish problem and the anti-American position for which she speaks.
References
Anon. 2004. Maverick MP turfed from Liberal Caucus. Canada.com. here.
Theres a piece on brands by James Surowiecki in Wired. Its stuffed with interesting observations and dubious assertions.
Brand numbers are up:
Since 1991, the number of brands on US grocery store shelves has tripled. Last year, the US Patent and Trademark Office issued an incredible 140,000 trademarks – 100,000 more than in 1983.
So is brand noise:
The average American sees 60 percent more ad messages per day than when the first President Bush left office.
Brand loyalty is down:
Consumer-goods markets used to be very stable. If you had a set of customers today, you could be pretty sure most of them would still be around two years, five years, ten years from now. That’s no longer true. A study by retail-industry tracking firm NPD Group found that nearly half of those who described themselves as highly loyal to a brand were no longer loyal a year later.
The added value of the brand is in question:
Look at Nokia. In 2002, it had the sixth-most-valuable brand in the world, valued by the consultancy Interbrand at $30 billion. But the very next year, Nokia made a simple mistake: It didn’t produce the clamshell-design cell phones that customers wanted. Did consumers stick around because of their deep emotional investment in Nokia? Not a chance. They jumped ship, and the company’s sales tumbled. As a result, Nokia lost $6 billion in equity.
The take-away:
[T]he long-term value [of brands] is shrinking. They’re becoming nothing more than shadows. You wouldn’t expect your shadow to protect you or show you the way. It only goes wherever you do. The truth is, weve always overestimated the power of branding while underestimating consumers ability to recognize quality.
The warning:
Marketing types either don’t see this trend or choose not to talk about it.
My analysis:
Finally, this piece disappoints because Surowiecki appears to hold to the old fashioned wisdom about a “rational consumer. This is where Adam Smith and Karl Marx came down on the same side. The consumer is a most concerned with price and quality. All the rest of epiphenomenal. Smarter, better informed consumers see through branding and marketing. They go for value.
The trouble with this approach is that it ignores academic work that was started by Sid Levy and Irving White in the 1950s. Over half a century, marketing scholars and professionals have developed a sophisticated understanding of what value is and how branding contributes to it.
It is now not unusual to suppose that value comes from two sources. It comes from utility, the ability of the product to solve problems in the world. And it comes from meaning, the cultural significance with which the product is charged.
This means that the product is only half done when it emerges from the lab and the plant. It is not complete until marketing, defined here broadly to include design, advertising, and consumer co-participation, gives it cultural meanings. Thus does marketing engage in “meaning manufacture. Utilities and meanings, these are the two founts of value.
Is there a problem? Of course, theres a problem. Living as we do in a dynamic world, consumers are more various and more changeable than before. Creating current meanings requires deep knowledge of the culture and constant adjustment to its changing trends. The best brands are a little like sailing ships. They have the deep ballast of long standing meaning, the deck cargo of recent meanings, and tall sails that must be repositioned often to adjust to constantly, sometimes whimsically, changing consumer taste and preference.
To say that brands are having a hard time adding value is merely to say that they find themselves charged with the task of responding to a world that no one thought was possible. (Remember when capitalism stood accused of producing a monolithic, static culture?) It should also be observed that both marketing professionals (Lafley at P&G) and marketing scholars (see references) are hard at work trying to figure out how responsiveness might work.
Brands may becoming more like shadows, as Surowiecki says. Indeed we must hope that this is so. It will make them more nimble and fluid than they used to be. “Shadow management, perhaps this is a new brand strategy. But it will take a subtlety and responsiveness that the marketer has yet fully to master. As the Elizabethans used to say: “Pursue your shadow and you will never catch it. Run from your shadow and it will follow you anywhere.
References
Fournier, Susan. 1998. The Consumer and the Brand: Developing Relationship Theory in Consumer Research. Journal of Consumer Research 24, no. March: 343-73.
Levy, Sidney J. 1959. Symbols for Sale. Harvard Business Review 37, no. 4 July/August: 117-24.
Levy, Sidney J, and Dennis W. Rook. 1999. Brands, consumers, symbols, & research: Sidney J. Levy on marketing. Thousand Oaks, Calif: Sage Publications.
McCracken, Grant. 1988. Culture and Consumption: New Approaches to the Symbolism of Consumer Goods and Activities. Bloomington: Indiana University Press.
______ 2006a Culture and Consumption II: markets, meanings and brand management. Bloomington: Indiana University Press. (Due out Spring.)
_______ 2006b Flock and Flow: managing change in a dynamic marketplace. Bloomington: Indiana University Press. (Due out Fall.)
Prahalad, C. K, and Venkatram Ramaswamy. 2004. The future of competition: co-creating unique value with customers. Boston: Harvard Business School Press.
Roberts, Kevin. Lovemarks. a book and a blog here.
Anthony Lane makes this observation about The Incredibles:
[Digital filmmaking of this kind] is, by definition, unable to cope with spontaneity. The camera no longer catches a feature, or a play of expression, on the wing; someone has to create a program for it and patch it into place.
The problem with machine based animation is that you cant get out what you dont put in. Live actors in real time on actual sets are inclined to work by accident and inspiration. Things slip into the performance that are not anticipated by the script writer or called for by the director. It is often these little grace notes that make the scene and the movie live.
But these graces notes dont happen in machine based animation. The film maker must think to put things in. And we dont add accidents on purpose. (Otherwise, they wouldnt be accidents.) So machine based animation often feels wooden and not very, um, animated. An effort is made to show “wind ruffling “hair, but the real stuff, the grace notes, the simple gifts, of spontaneity are hard to come by
I was thinking about Lanes remark when reading about a crisis that has now beset the world of education. Many school systems are keen to protect children from competition, and the failure and differentiation it creates. Indeed parents now complain about school plays that have starring parts. They prefer plays in which all parts are equal. The world of education is becoming a place where everyone is equal and no one is allowed to fail.
The effects are beginning to show.
For her vantage point as a Los Angeles-based psychologist, [Dr. Wendy Mogel] has witnessed the fallout of a self-esteem movement that began with the best intentions of protecting children from the emotional harm that comes from undermined confidence but which has instead left schools hamstrung by constant ego-protecting maneuvers and children with wrapped-in-cotton-batten lives.
In an earlier post, I noticed that the lives of kids have been highly programmed and indeed regimented. Here we learn that their lives are sanitized against ranking and risk.
Are we creating a Pixar generation? Will this be a group of kids so highly programmed, so cosseted that they will be incapable of risk taking and even the very animation on which our economy and culture now depends? The problem here it seems to me is very like the one observed by Lane. You cant get out what you dont put in. Raise children without surprises, with tests, without outcomes, without what the French call bouleversement, and we end up with kids who are ill prepared to create innovation, intellectual capital, creativity and change.
Ironically, our world becomes ever more a matter of bouleversement. And we have all made the personal accommodations necessary to cope with and contribute to such a world. There is evidence that we are getting the hang of it. We are getting steadily better at dynamism. But if we are raising a generation of cotton batten kids who are systematically kept from spontaneity, we will become of us? More to the point, what will become of them when we ask them finally not to work for a living but “risk for a living,” as we all now must?
I realize this makes me sound a little like David Riesman and other intellectuals of the 1950s who were persuaded that a new generation of conformists was in the works. The difference here is that Reisman and company believed that a commercial culture must flatten differences and creativity. But now the risk comes from the other side of the isle, from the well intentions liberals who believe that our children must be protected. Riesman was wrong, it turns out. The 1950s helped produce a generation that helped produce a fountain of innovation. Lets hope Im wrong, too.
References
Belgrad, Daniel. 1998. The Culture of Spontaneity: Improvisation and the arts in postwar Ameica. Chicago: University of Chicago Press.
Brown, Shona L, and Kathleen M Eisenhardt. 1998. Competing on the edge: strategy as structured chaos. Boston: Harvard Business School Press.
Florida, Richard L. 2004. The rise of the creative class and how its transforming work, leisure, community and everyday life. New York, NY: Basic Books.
Hayles, Katherine N. 1990. Chaos Bound: Orderly Disorder in Contemporary Literature and Science. Ithaca: Cornell University Press.
Kelley, Tom, and Jonathan Littman. 2001. The art of innovation. New York: Currency/Doubleday.
Kouwenhoven, John. 1988. What’s ‘American’ about America. The Beer Can by the Highway. John KouwenhovenBaltimore: Johns Hopkins University Press.
Lane, Anthony. 2004. Illustrated Life. The New Yorker. November 15, 2004, pp. 116-117.
McCracken, Grant. 2004. Is there a Ricky Williams effect? The blog here.
Owens, Anne Marie. 2004. Everybody fails. National Post. several days ago. (This is the source of the quote on Dr. Mogel. Sorry, I dont have the full reference. National Post does not allow access in any case.)
Postrel, Virginia. 1998. The Future and Its Enemies: The growing conflict over creativity, enterprise and progress. New York: The Free Press.
Riesman, David with Nathan Glazer and Reuel Denney. 1961. The Lonely Crowd: A Study of the Changing American Character. New Haven: Yale University Press.
Spar, Debora L. 2001. Ruling the Waves: Cycles of Discovery, Chaos, and Wealth from Compass to the Internet. New York: Harcount.
Tom Wolfe is Americas best unlicensed anthropologist. He has studied us for 45 years. He has actually shaped us as a culture.
He helped start the counter culture with Electric Kool Aid Acid Test (1968) and end it with the “Me Decade essay in 1976. He helped start the preppie revolution with The Right Stuff in 1979 and end it with The Bonfire of the Vanities in 1989.
While “real anthropologists slept happily in the light house of the academic world, Wolfe actually found his way to the flying bridge, eagerly shouting “how bout this? one moment, followed by a patrician ‘that will do a decade later. Wolfe made journalism and fiction do what treaties and theses could not: capture, shape, work and rework a culture.
If Wolfe has an heir apparent, its David Brooks, the author of the exemplary Bobos in Paradise. And the similarities between them are marked. They share good academic training (Yale and University of Chicago, respectively), a native curiosity, an impatience with cant, a keen eye for the telling detail and, most of all, the willingness to go where all these virtues take them (with no detours through the light house).
So its a matter of some interest when Brooks reviews Wolfe, as he did today in the pages of the New York Times. Its not clear to me that Brooks fully “gets what Wolfe is up to in I am Charlotte Simmons. He dutifully records Wolfes attempt to document a world in which “all the rules of life [are] dissolved, where ‘the morality that used to undergird [these rules] dissolved long ago, and where everyone, not just Charlotte, is “left swirling about in a chaotic rush of desire and action, without a coherent code to make sense of it all.
Brooks apparently believes there is a cultural fix available to us. He hints that universities might supply “character building and “courage to our many Charlottes that their lives might take on new moral crispness.
But Wolfe understands that these two educational “deliverables are now necessarily problematical. A Man in Full, Wolfes last novel, examined the real diversity of the city of Atlanta, almost as if he had taken up a dare. Could any one man plausibly represent these very different lives? By and large, Wolfe won the dare, and in the process he demonstrates that the new diversity puts paid to the “moral code Brooks would have us reconstruct.
If A Man in Full documented the ethnographic diversity of one American city, I am Charlotte Simmons documents the moral diversity of one American campus. Let us take one crude measure of this diversity. Every Charlotte must define her sexual relationships. There are many options to choose from: “I will not have sex before marriage, I will have sex before marriage but only with a boyfriend, I will have sex only with someone I have dated at least x times, I will have sex with anyone who will buy me dinner. Of course, Charlotte must then decide what kind of person she is looking for, what kind of person she will be in the relationship, what kind of sex she is looking for, and what she wants for dinner.
Models of moral conduct are various in American culture and they will remain so. This has always been one of the things we spend our time at college doing. Making choices, trying them on, and deciding which of them “fit, observing how each choice shapes the self, and choosing finally which of them might serve us as we leave college and finally and irretrievably enter adulthood. (I remind the reader of that famous 90s designation “LUG, [lesbian until graduation], that marked one of the postures with which some students experimented.) The contemporary culture merely has a wider range of options, and this is surely and precisely what we would expect of the most experimental place of an experimental culture. (Perhaps this is one so many undergraduates take refuge in the post modernist’s delirium.)
College might not be the best place to get an education, but it is a pretty good place to scrutinize and experiment with what its like to live in a morally various world where characters are not so much built as formed through a process of trial and error. Wolfes illuminates what it is to live in a world of plentitude. To hanker after codes and courage is to miss a good deal of what it has to teach us here.
References
Brooks, David. 2000. Bobos in paradise: The new upper class and how they got there. New York: Simon & Schuster.
_______. 2004. ‘Moral Suicide,’ à la Wolfe. New York Times. Subscription required here.
After a decade during which marketing became raunchier and raunchier, the tide has now turned. There are signs that glamorous blond women and muscle-rippling playboys are no longer the answer to every marketing officer’s prayers.
Matthew Lynn reports that the U.K. retailer, French Connection Group Plc will drop its “FCUK logo this summer. Abercrombie and Fitch have decided to cease publication of the catalogue that drew comment for its scantily clad models. Sex doesnt sell the way it used to, apparently.
Lynn believes the change in advertising content is a matter of wear out. “Sexual imagery is now so ubiquitous in marketing campaigns, it has lost the power to shock us.
In June, I commented on the fact that young women are adopting more modest clothing, that the bare midriff was now passé. I wondered whether this represented a deeper cultural trend than the “wear out explanation acknowledges. Perhaps women in their teens and 20s are insisting on new terms of reference, that they are rewriting the rules of femaleness.
There are cultural definitions that have a certain primacy. Gender is foundational in this way. Make a change here, and a change ripples through the social order and the marketplace. If young women are reworking our notions of gender, we must look for a substantial change in their notions of family, community, and politics. Indeed, we may be looking here at one of the “feeder trends that helps drive the “values issue of the recent Presidential campaign.
But it would be wrong to think of this as a mere conservatism. It is something more than simple risk adversion, the search for a higher moral ground, or a return to conventional values. One way to track this trend might be to think of it as 4th wave feminism. And if this is the case, we may look forward to yet another reinvention of contemporary life.
References
Lynn, Matthew. 2004. Europes shoppers get weary of sex in advertising. Bloomberg News. here
McCracken, Grant. 2004. Anthropology and Economics of the Bare Midriff. June 11, 2004. here
McCracken, Grant. 2004. Fashion and Economics. Aug. 8, 2004. here
In about 2 weeks, Skype has made itself indispensable. I use it to talk to my fiancée, a couple of brothers-in law, colleagues and friends.
But it’s also anthropologically illuminating and raises questions about what will happen to the self when we are truly ubiquitous.
Skype takes us one step closer to have electronic access to everyone we know with a minimum of interference. The telephone was a big step here, replacing hand written letters and telegrams the content of which would cool quite distinctly as the message inched its way to the recipient. The cell phone took the telephone one better. It means we can make and take calls anywhere.
Phone and cell phone give instant, ubiquitous access, but a certain interference or mediation persists. There was lots of hunting and pecking required, made more difficult by every smaller cell phone. And of course it was necessary to remember phone numbers and to find people when they were “in or “packing.
Skype is better still. Forget the fact that its free. What makes Skype a killer app is the fact that it allows us to get in touch with one click. Once it too is wireless there will be virtually no cost in time or effort to make contact. We can imagine a time when we are effortlessly in touch with anyone anywhere. The little microphone in our ears will stream with the voices of the people we care about, as they let us know what they are up to, how they are feeling, and “just stay in touch. We will then be in possession of a detailed, pretty intimate, daily knowledge of friends and family. Phat-ic!
But there are other benefits that are becoming evident to me as I use the technology. One is the kind of calls you end up having. A couple of days ago, I had an interesting conversation with my future nephew. He was in Connecticut. I was in Montreal. I was talking to Pam, my voice issuing from her iBook. Once he got over the fact that he was being listening to a box of white plastic, he announced, over the general hubbub of voices in the room, that his fathers name is Steven.
We all stopped. “Thats right, David, your fathers name is Steven! And we had a long conversations about names. (David and I agreed everyone should have an absolutely distinct name and not have to share. We also decided it would be simpler if our first, middle and last names were all the same. He would be David David David. I would be Grant Grant Grant.) Now, this is a conversation David would never have joined were it not for Skype. His aunt would have been holding the phone. He couldnt have got “in.
Furthermore, telephone conversations are hard for kids because they are bad at the set up and the sustaining talk needed to make a conversation. They pace badly. They speak out of turn. It is much, much easier in person. But with a roomful of people at Pams end keeping the conversation going, and with a microphone to capture anything and everything being said, it was easy for David to just shout out. And, presto, he was suddenly very much a part of the conversation. Now, I have access even to the worst conversationalist in the family (and he to me).
Today I’m watching Saskatchewan play B.C. in a Canadian Football League playoff game. Emmet, my brother-in-law and I will no doubt be Skyping throughout the game. (“Nice catch! “Great hit!) We will in effect be watching the game together despite the fact that we are 3000 miles apart. We will not have to talk later in the day or next week about “the game.” We will know exactly what the other thought.
“What, I found myself thinking over breakfast, “does this mean for personhood? David, Emmet and I now have something like instant, costless access to each other and the family. Our lives are more porous to one another. We are, as Goffman would say, much more a “we than we used to be.
Plainly, this is a job for the likes of Judith Donath, the MIT expert in the social consequences of computing (as below), but I would like to take a crack at it. It means that we go back to the kind of face-to-face (now voice-to-voice) proximity that used to exist in the West until quite late in the game. Most of the people Westerners cared about existed within the range of their voices. It is one of the staples of the literature on individualism that people who lived in these little audio ambits had very porous selves indeed. Living in close proximity, they had “blurred boundaries. Their lives were so overlapping and interpenetrating that it was hard to tell at any given moment were the “I left off and the “other began. Social life and personal identity were one large soup of mutuality.
So what happens when we use Skype and its successors and begin to get instant access to everyone all the time? Do we return to that soupy world in which the boundaries of personhood begin to blur? Do we return to an intimate little world in which we live out of one anothers pockets. Does the self become much more a node in a net than a pebble in the stream. And would this mean that individualism, (and the notion that selves are relatively speaking pretty well bounded), end up being a relatively brief period in the history of the West?
I raise these questions only. The rest of up to Dr. Donath.
Bell, Daniel. 1976. The Cultural Contradictions of Capitalism. New York: Basic Books.
Bellah, Robert N., Richard Madsen, William M. Sullivan, Ann Swidler, and Steven M. Tipton, editors. 1985. Habits of the Heart: Individualism and Commitment in American Life. Berkeley: University of California Press.
Carrithers, Michael, Steven Collins, and Steven Lukes. editors. 1985. The Category of the Person: Anthropology, Philosophy, History. Cambridge: Cambridge University Press.
Davis, Natalie Zemon. 1986. Boundaries and the Sense of Self in Sixteenth-Century France. Reconstructing Individualism: Autonomy, Individuality and the Self in Western Thought. editors T. C. Heller, M. Sosna, and D. E. Wellbery, 53-63. Stanford: Stanford University Press.
Donath, Judith. Forthcoming. Sociable Media. The Encyclopedia of Human-Computer Interaction and here.
Dumont, Louis. 1986. Essays on Individualism. Chicago: University of Chicago Press.
Goffman, Erving. 1959. The Presentation of Self in Everyday Life. Harmondsworth: Penguin.
La Fontaine, J. S. 1985. Person and individual: some anthropological reflections. in The Category of the Person: Anthropology, Philosophy, History. editors Michael Carrithers, Steven collins, and Steven Lukes, 123-40. Cambridge: University of Cambridge Press.
Lukes, Steven. 1969. Durkheim’s ‘Individualism and the Intellectuals’. Political Studies 17, no. 1: 14-30.
. 1973. Individualism. Oxford: Oxford University Press.
Why is Microsoft giving all that money back? Shareholders are about to receive a gift in the order of $32 billionroughly half of Microsofts cash holdings. I am a modest shareholder in Microsoft. I would rather they invested this money in research and development, to create, in other words, still more value in which I can share.
Now, there are probably lots of really good reasons, scrutable only by the likes of the kids I used to teach at the Harvard Business School. But I wonder if the pay out might also be a symptom of trouble at Microsoft.
At a conference this year, a well placed source spoke to me privately, and a little bitterly, about “monetizing at Microsoft. S/he said, that at Microsoft, they interrogate new ideas hard. Will they pay? How much will they pay? How soon will they pay? Or should we just kill it now? Put it out of our misery. That kind of thing.
We now have volumes on how creativity and innovation happen from the likes of Robert Sutton, Rosabeth Moss Kantner, Clayton Christensen, Eric Von Hippel, Andrew Hardagon, and Henry Chesbrough. No one on this list recommends playing the school yard bully. Ideas like to keep their lunch money. They dont like being pushed around. Eventually, they will avoid you on the playground. And that where are you then? Friendless and idea free. Hmm, could this be the Microsoft we know?
Google has another idea, apparently. Employees get a day a week in which to pursue their own innovations. They call this the “20% rule. You work on what you want once a week.
This is a nice variation on the “skunkworks notion, the one that says innovation sometimes happens most surely when you take a team of people and stick them in a corner by themselves. Skunk works liberate people from the “death by committee conservatism of the corporation. The trouble with skunkworks is that the corporation loses the services of the skunkworker. Both in the short term and the long. How are you going to get someone back in the corporate box once they have tasted the real intellectual freedoms and engagement of real creativity?
The 20% rule says you can keep people inside even as you let them outside. Now, when stuck in interminable committee work, they resort to dreaming about their project instead of buzz work bingo. More than that, you give them the chance to go places the corporation cant imagine. Still more than that, you take them seriously as idea producers, whatever else they do for you. Most of all, you pay them in intrinsic satisfaction, which, as we all know, is a much higher grade of value than a fat pay check and a fast car (especially once you have the fat pay check and the fast car).
I have an idea. Microsoft should keep that $32 billion and use it to buy everyone in the corporation a day a week of real creativity. This shareholder would be well satisfied.
References
Linn, Allison. 2004. Microsoft to pay out $32 billion. AZCentral. November 10, 2004. here
Row, Heath. 2004. Google, Innovation and the Web, the SxSW presentation by Marissa Mayer, Director of Consumer Web Products at Google. here