We did this interview a year ago, but he’s finally (and deservedly) hitting the best-seller lists – thanks to a strong internet-based campaign. The book >>
Why do you claim that “Trust” is the key leadership competency of the new global economy?
Covey: If you look at the nature of the world today, a foundational condition in Thomas Friedman’s flat world is the presence of trust. Put simply, today’s increasingly global marketplace puts a premium on true collaboration, teaming, relationships and partnering, and all these interdependencies require trust. In the book I point out that partnerships based on trust outperform partnerships based on contracts. Compliance does not foster innovation, trust does. You can’t sustain long-term innovation, for example, in a climate of distrust.
In issue after issue, the data is clear: high trust organizations outperform low-trust organizations. Total return to shareholders in high trust organizations is almost three times higher than the return in low trust organizations.
So we assert that trust is clearly a key competency. A competency or skill that can be learned, taught, and improved and one that talent can be screened for.
Trust is the one thing that affects everything else you’re doing. It’s a performance multiplier which takes your trajectory upwards, for every activity you engage in, from strategy to execution.
How do you identify a high-trust or low-trust organizations?
Covey: Trust is a powerful accelerator to performance and when trust goes up, speed also goes up while cost comes down — producing what we call a trust dividend. How do you know if you have a high trust culture? By observing the behavior of your people. In high trust, high performance companies, we observe the following behaviors:
• Information is shared openly
• Mistakes are tolerated and encouraged as a way of learning
• The culture is innovative and creative
• People are loyal to those who are absent
• People talk straight and confront real issues
• There is real communication and real collaboration
• People share credit abundantly and openly celebrate each others’ success
• There are few “meetings after the meetings”
• Transparency is a practiced value
• People are candid and authentic
• There is a high degree of accountability
• There is palpable vitality and energy–people can feel the positive momentum
Another very visible indicator is the behavior of your customers and suppliers. What is your customer churn rate? Do you have a history of long-term customer and supplier relationships? What is your reputation or brand equity in your marketplace?
Conversely, when the trust is low, there’s a trust tax which changes your trajectory downwards. In our work with organizations, we find that low-trust, low-performance organizations typically exhibit cultural behaviors like:
• Facts are manipulated or distorted
• Information and knowledge are withheld and hoarded
• People spin the truth to their advantage
• Getting the credit is very important
• New ideas are openly resisted and stifled
• Mistakes are covered up or covered over
• Most people are involved in a blame game, badmouthing others
• There is an abundance of “water cooler” talk
• There are numerous “meetings after the meetings”
• There are many “undiscussables”
• People tend to over-promise and under-deliver
• There are a lot of violated expectations for which people make many excuses
• People pretend bad things aren’t happening or are in denial
• The energy level is low
• People often feel unproductive tension–sometimes even fear
These behaviors are all taxes on performance.
The work we do is to establish trust as your organizational operating system. That’s a high-tech metaphor, but it’s appropriate. We know how trust works, how to measure it, how to establish it, grow it, extend it, and sustain it – with all stakeholders.
Why is trust such a hidden variable to many otherwise competent managers?
Covey: Unfortunately, too many executives believe the myths about trust. Myths like how trust is soft and is merely a social virtue. The reality is that trust is hard-edged and is an economic driver.
For instance, strategy is important, but trust is the hidden variable. On paper you can have clarity around your objectives, but in a low-trust environment, your strategy won’t be executed. We find the trust tax shows up in a variety of ways including fraud, bureaucracy, politics, turnover, and disengagement, where people quit mentally, but stay physically. The trust tax is real.
There are many myths about trust, and in my book I present them in a table your readers may find helpful:


Seth Godin on Being Remarkable
Seth Godin helps you wake up… you can’t be average anymore.
– Design…
– Don’t be safe…
– Don’t be boring…
– Skip the BMW ad…
– it’s Otaku time!
Kevin Coyne’s 21 Questions for Developing New Products
The December 2007 HBR had an interesting article by Kevin Coyne called Breakthrough Thinking from Inside the Box. There’s far more to this article than just the 21 questions, so I urge you to go grab it here!
The approach Coyne and friends describe supposedly works better than brainstorming or strict quantitative analysis >>
“De-average” buyers and users
Which customers use or purchase our product in the most unusual way?
Do any customers need vastly more or less sales and service attention than most?
For which customers are the support costs (order entry, tracking, customer-specific design) either unusually high or unusually low?
Could we still meet the needs of a significant subset of customers if we stripped 25% of the hard or soft costs out of our product?
Who spends at least 50% of what our product costs to adapt it to their specific needs?
Explore unexpected successes
Who uses our product in ways we never expected or intended?
Who uses our product in surprisingly large quantities?
Look beyond the boundaries of our business
Who else is dealing with the same generic problem as we are but for an entirely different reason? How have they addressed it?
What major breakthroughs in efficiency or effectiveness have we made in our business that could be applied in another industry?
What information about customers and product use is created as a by-product of our business that could be the key to radically improving the economics of another business?
Examine binding constraints
What is the biggest hassle of purchasing or using our product?
What are some examples of ad hoc modifications that customers have made to our product?
For which current customers is our product least suited?
For what particular usage occasions is our product least suited?
Which customers does the industry prefer not to serve, and why?
Which customers could be major users, if only we could remove one specific barrier we’ve never previously considered?
Imagine perfection
How would we do things differently if we had perfect information about our buyers, usage, distribution channels, and so on?
How would our product change if it were tailored for every customer?
Revisit the premises underlying our processes and products
Which technologies embedded in our product have changed the most since the product was last redesigned?
Which technologies underlying our production processes have changed the most since we last rebuilt our manufacturing and distribution systems?
Which customers’ needs are shifting most rapidly? What will they be in five years?
Finally, if you want to hire Kevin Coyne, he’s available here >>
JSB on Creativity: Building the DNA of Innovation (Listen up Yahsoft/Microhoo!)
Microsoft and Yahoo need to listen to this carefully…
Everybody’s Going Surfin’ – Catching the Innovation Wave
The latest in a series of Innovation on the Edge articles to appear in BusinessWeek, Catching the Innovation Wave is a clever lesson in how innovation occurs at the relevant edge.

John Hagel and JSB ask executives to:
1. “find relevant edges that will test and push their current performance.”
2. “attract motivated groups of people to these edges to work together around challenging performance issues.”
3. “recognize that the people who are likely to be attracted to the edge are big risk-takers.”
4. “recognize that the edge fosters not just risk-taking, but very different cultures that are also ‘edgy.’ ”
5. “find ways to appropriate insights from adjacent disciplines and even more remote areas of activity.”
6. “bring users and developers of technology close together.”
7. understand “the loose practice network that evolved around big wave surfing.” Performance breakthroughs occur “when seasoned practitioners engage with the technology, especially in close-knit communities, and evolve their practices to better use it…”
Watch the surfing slideshow here, and read a longer version of the article on John’s blog >>
Innovation is Everyone’s Job
Years ago, I was one of the youngest employees to be invited (to this day I still don’t know who nominated me) to speak at Bechtel’s Management Advisory Seminar – a yearly gathering of top managers and staff to discuss the topic of innovation.
While this was supposed to a great honor, it turned out to be a lot of work. It was a day-long affair, and I was to give two speeches. One on “Innovation in Marketing & Sales,” and the other was something like “Innovation in Being Global.” So there I was, the only one foolish enough to be suckered into making two presentations with about 400 people in the room.
As usual I talked too much, waved my hands around too much, and irritated the heck out of the head of our regional office. After the presentation was over, no one had any questions. Later, the head of the office actually asked me to explain everything in a written memo to him.
We never talked about innovation again, but he must have liked my writing style because I ended up doing some serious speech writing for him and a few other senior managers.
That was the extent of my encounter with innovation in the staid world of engineering and construction.
“At least they let you speak,” said one of my supervisors when I asked why no one cared about my recommendations.
So why did no one pay attention in an official capacity? Why is it that everyone praised me in private, and patted me on the head in public, dismissing me as “that passionate fellow”?
Gary Hamel’s blog post “Making Innovation Everyone’s Job” helps me understand why years later.
Here’s what Hamel says:
… it’s surprising that so few companies have made innovation everyone’s job. For the most part, innovation is still relegated to organizational ghettos—it is still the responsibility of dedicated units like new product development and R&D, where creative types are kept safely out of the way of those who have to “run the business.”
Today innovation is the buzzword du jour, but there’s still a yawning chasm between rhetoric and reality. If you doubt this, seek out a few entry-level employees and ask them the following questions:
1. How have you been equipped to be a business innovator? What training have you received? What tools have you been supplied with?
2. Do you have access to an innovation coach or mentor? Is there an innovation expert in your unit who will help you develop your breakout idea?
3. How easy is it for you to get access to experimental funding? How long would it take you to get a few thousand dollars in seed money? How many levels of bureaucracy would you have to go through?
4. Is innovation a formal part of your job description? Does your compensation depend in part on your innovation performance?
5. Do your company’s management processes—budgeting, planning, staffing, etc.—support your work as an innovator or hinder it?
Don’t be surprised if these questions provoke little more than furrowed brows and quizzical looks. Truth is, there are not more than a handful of companies on the planet that have, like Whirlpool, built an all-encompassing, corporatewide innovation system.
Ouch. Innovation wasn’t supposed to happen from the ground up at Bechtel, it was top down. I had crossed the boundaries of the culture of the time. And that’s the point at which I decided I had to leave.
I stuck around for a year or two more – helping build the Bechtel Intranet, working on a company-wide reengineering project, sending a few emails to Riley Bechtel, meeting Fred Gluck, making a few people mad. For some reason, I loved it all.
My seven year “career” at Bechtel ended when I left to teach high school math (that lasted for a year) and never returned to the engineering world again. So much for innovation.
I still look back at my days at Bechtel as a great experience which prepared me for the Internet and consulting in a way that I could not have experienced if I had been an outside-consultant. I saw what worked and why. I understood culture and its contribution to decision-making. I learned about fear and resistance to change. I made a lot of good friends, some of whom I still look up to this very day.
And, most of all, I learned the importance of working for myself.
Here’s more from Hamel >>
The Marshall Goldsmith Show
Someone needs to put Marshall on Late Night TV. He’s better than most comedians and infinitely more useful!
Check out this hour-long video of Marshall in action with the nerds at Google >>
Ram Charan: 6 Secrets of Execution
What happens when you work 24X7 for 30 years? You may become Ram Charan.
When I think of Ram I think: “here’s a Peter Drucker without imagination.”
On one hand this is a flaw. On the other hand, it is also his strength. He has shown a remarkable ability to focus like a laser on the business of business. But along the way he may have forgotten how to live. Ram Charan has lived on the road for 30 years – no home, no family. That’s some focus.
Now listen to him on the video as he reveals the “6 secrets of execution.”
The 7th one is obvious: “Life is Work, Work is Life.”
PR Nightmare? The World Bank chops down the Amazon rainforest
Here we go again.
The World Bank is busy funding the destruction of the Amazon rainforest, alleges this article in The Independent.
The World Bank has emerged as one of the key backers behind an explosion of cattle ranching in the Amazon, which new research has identified as the greatest threat to the survival of the rainforest.
Nice. I wonder if this story will be picked up by the “corporate media” in this country. Not if Britney Spears has another nervous breakdown…
Now let’s see… who was the bright guy in charge of the World Bank when this policy was put into place?
Why, none other than our good friend Paul D. Wolfowitz – the mastermind who took us into Iraq.
Good luck going green Mr. Zoellick!
Make Us a Nation: Barack Obama meets Steel Pulse
Here’s what happens when combine my favorite band (Steel Pulse) and my favorite politician (lyrics below). In a corny sort of way, this actually explains Obama’s appeal in a way the pundits cannot.
Make Us a Nation
by Steel Pulse
Chorus:
Yes we are, we gonna make us a nation
That’s based on truth and rights over one groundation
Yes we are, we gonna make us a nation
Of equality and justice and one iration
Wake up from your sleep and slumber
Let’s rise up in numbers
Time for liberation
No time for segregation
You know and I know war is not the way to go
Got to be wise and be civilised and let love flow
Let’s go, oh yes
Chorus
Its greed and jealousy
Separating you and me
And all this tribal war
Zapping all our energy
Cause I’ve got a plan and I’m sure that we can
make it work
Unity is strength, solidarity is all its worth I yearn
Chorus
Equality and justice no more fuss & fight
Gonna make us a nation, gonna make us a nation
Gonna make us a nation oooh!
Gonna make us a nation, gonna make us a nation
Gonna make us a nation oooh!
Chorus
Equality and justice no more fuss & fight
We can make it work for what its worth
Right here on earth its red alert yeah!
A little bit of love coming from the heart
A little bit of love coming from the heart
A little bit of love coming from the heart
A little bit of love coming from the heart
Yeah heh! heh!
Cause all I want is to uplift my nation
To make them walk with pride among creation
Yes! Yes! Yes!
Easy, easy, easy, easy
Yeah
No more fuss and fight
No more fuss – no more fight
No more fuss and fight
P.S. – Check out Bill Dunk’s view on the Obama phenomenon>>
Foreign Affairs: It’s Judgement, Not Experience!
For those of us who say that Obama doesn’t have the experience to lead us in foreign affairs, let me just remind everyone that it’s not experience that counts but judgment. Unlike Dubya, Rumsfeld, Cheney and gang had plenty of experience, but they lacked judgment.
And it was this lack of judgment which led us into Iraq, diverted our attention and resources from Al-Qaeda, and ultimately caused severe damage to our relationships with allies like Germany, France, and yes, England (just ask Tony Blair). And that doesn’t take into account that we’ve dropped the ball on nuclear non-proliferation, Pakistan, Russia, North Korea, Iran, and Saudi Arabia.
So how does a President reach out to mend fences?
It helps if they are liked.
Remember JFK’s “ich bin ein Berliner” line? Well, now the Germans have taken a liking to Obama. Check out these headlines:
– Lincoln, Kennedy, Obama Frankfurter Rundschau
– Der neue Kennedy Berliner Morgenpost
– Dieser schwarze Amerikaner wird der neue Kennedy! Bild
Even the French are into it:
– Obama Superstar Le Monde
In Spain:
Barack Obama: “El cambio ha llegado esta noche a América” El Pais
And how about the UK?
– The first caucus of the revolution Financial Times
– Groundswell for Obama leaves Clinton campaign on the rack Guardian
– The White House? Political earthquake propels Obama towards presidency Independent
– Hope and experience gave Obama the edge Telegraph
– Iowa voters hail ‘turning point’ BBC
Finally, in India, of course the Indians are taking credit for Obama’s victory:
– South Asian organisation a factor in Obama’s success in Iowa Times of India
So much for experience. It’s change, stupid.
Obama Fever: The Tipping Point for Politics 2.0?
The video evidence tells us a new America is dawning:
Are we seeing the end of smash-mouth politics? I hope so.
Brand Destruction 101: How ABC News shot itself in the foot, and how you can watch the latest New Hampshire presidential debate in its entirety
What does it say for ABC when you can download the entire season of full-length episodes of “Desperate Housewives” but not the latest presidential debate held in New Hampshire?
I guarantee you this hurts the ABC brand. What were they thinking? Is this a deliberate “mainstream corporate media” black-out strategy or is this just plain incompetence? Probably both.
ABC News does a great disservice to the American people. Do they think anyone is going to trust Charles Gibson now?
What a joke.
Luckily there are alternatives >>
Score another “win” for YouTube.
Politics 2.0: The Real Story in Iowa
Total Voter Turnout
356,000
Percentage of total vote
24.5% Obama (D)
20.5% Edwards (D)
19.8% Clinton (D)
11.4% Huckabee (R)
America turns the page. Is this Politics 2.0?
Cartoon: Rasputin – TIME’s Person of the Year
Management Secrets of Chairman Mao
Years ago, I read an article in the McKinsey Quarterly about the totalitarian structure of corporate governance. Why is it, asked Rajat Gupta (this was before he became the head of McKinsey), that in a democracy like the US, our corporate institutions are so undemocratic?
The Economist reminded me of that article a few days ago when they published an article titled “Mao and the art of management.”
Here are some “best practices” –
1. A powerful, mendacious slogan (in Mao’s case “Serve the People”…)
2. Ruthless media manipulation
3. Sacrifice of friends and colleagues
4. Activity substituting for achievement
Who does that remind you of? Exxon Mobil? The Republican Party? Cheney & W? All of the above?
By the way, here’s the answer to Rajat’s question = $$$.
Back in the US of A
After spending some time in Europe over the last few months I have to say I’m glad to be back in the good ol’ USA.
Yes, we have our issues – bad government, dismal healthcare, guns everywhere, corporate greed, etc. etc., but at least we Americans do seem to question authority – far more, it seems to me, than the Europeans.
I was amazed at how fatalistic the European view of the world is. It reminded me of the old Indian view of life – you can’t do anything to change anything, so don’t do anything. It’s all kismet, so let it go.
The conservatives paint it this way. But they’re wrong. It’s not a culture war. It’s a war for individual rights. The right of individuals to decide their own destiny. The irony is that the conservatives focus on freedom, and use groupthink to enforce their views.
In their own blind way, the conservatives have destroyed our Bill of Rights, the very thing they claim they are protecting. It doesn’t have to be us versus them. It’s time to stop the Assault on Reason, as Gore calls it.
The absence of US political leadership has hurt us (and the world) over the past eight years. But what’s amazing to me is that Europe can’t lead at all, period. Maybe it has something to do with not rocking the boat, but European bureaucrats will never stick their necks out to change anything. Tony Blair, Gordon Brown, Angela Merkel and Sarkozy. Have any of them made a difference? Will they?
As for customer service, forget it. In some ways European customer service is almost as bad as India. (More about this in future posts.) The sheep-like character of the European consumer doesn’t improve matter either (more fodder for future posts). The European consumer is trapped – in a marketplace without alternatives.
On the positive side, Europe does have some nice monuments and museums, but again, many of them exist because they were saved, er, underwritten by Americans.

Also their healthcare system does work, despite claims to the contrary. In the US, we’re owned by the drug companies. In Europe the drug companies have been kept in their place.
I expected the Europeans to be more green and care more about the environment. No such luck. Businesses are more sophisticated at pretending to be green, but the general populace – from Italy to Austria, France to England fall way short.
Has anyone seen the dismal condition of the Bern bears in Switzerland? It’s just another PR nightmare waiting to happen for the “enlightened” Swiss.
Whoever said the Swiss care about the environment got it wrong. The Alps were so polluted with a gray haze that you couldn’t even see across Interlaken. And the smog lasted for weeks.
Finally, I tell you this: I’ll never forget Omaha beach. Or Utah. God bless the USA and the good men who gave their lives on those beaches.
And may God help us elect a real president this time around. Not just to lead America, but to lead the world. It’s about time. Time for some hope. And some good old fashioned reason.
Chindogu anyone?

Being stalked? Just go ahead and camouflage yourself as a Coke machine.
Martin Fackler’s NYTimes article Fearing Crime, Japanese Wear the Hiding Place gives us a look at the peculiar world of Japanese innovation.
Writes Fackler:
[Japan is] home to a prolific subculture of individual inventors, whose ideas range from practical to bizarre. Inventors say a tradition of tinkering and building has made Japan welcoming to experimental ideas, no matter how eccentric.
“Japanese society won’t just laugh, so inventors are not afraid to try new things,” said Takumi Hirai, chairman of Japan’s largest association of individual inventors, the 10,000-member Hatsumeigakkai.
In fact, Japan produces so many unusual inventions that it even has a word for them: chindogu, or “queer tools.”
A chindogu manifesto is available online for all you budding inventors. The ten tenets are:
1. A Chindogu cannot be for real use.
2. A Chindogu must exist.
3. Inherent in every Chindogu is the spirit of anarchy.
4. Chindogu are tools for everyday life.
5. Chindogu are not for sale.
6. Humor must not be the sole reason for creating Chindogu.
7. Chindogu are not propaganda.
8. Chindogu are never taboo.
9. Chindogu cannot be patented.
10. Chindogu are without prejudice.
And here are a few examples of chindogu from the King of Chindogu – Kenji Kawakami.
Finally, here’s more from the International Chindogu Society. Check out the “portable zebra crossing” >>
Pankaj Ghemawat on Globaloney!
Why do so many global strategies fail—despite companies’ powerful brands and other border-crossing advantages?
Seduced by market size, the illusion of a borderless, “flat” world, and the allure of similarities, firms launch one-size-fits-all strategies.
But cross-border differences are larger than we often assume, explains Pankaj Ghemawat in his new book: Redefining Global Strategy. Most economic activity—including direct investment, tourism, and communication—happens locally, not internationally.
Here’s Ghemawat’s take on globaloney >>
Here’s his globaloney quiz:
Do you basically agree or disagree with the following statements:
1. Competing the same way everywhere is the purest form of global strategy (Uniformity)
2. The truly global company has no home base (Statelessness)
3. Globalization tends to make industries become more concentrated (Consolidation)
4. Globalization offers virtually limitless growth opportunities (Endless Growth)
5. Global expansion is an imperative rather than an option to be evaluated (Act of Faith)
Give yourself—or your colleagues—1 point for each yes answer, and add them up to get to the total score. Zero implies an absence of globaloney. A score of 1 or 2, while indicating some globaloney, is still better than average. A score of 3 puts you at the average for several hundred managers who responded to an online survey—see below—but note that the average is pretty unhealthy given the number of problems it can lead to (think Coke). And a score of 4 or 5 rises beyond globaloney to the level of globalmania.
One wonders whether Tom Friedman will read this book…
Run, Al Run!

This is not a politician’s desk… Now will he take on Exxon and their paid goons?
Gore Kicks off Presidential Run by Winning Nobel Prize
That’s the kind of headline I’d like to see…
While Gore is unexpectedly leaving the country to pick up his Nobel Prize, DraftGore.com has turned up the volume with an ad in the NYTimes (see full text below – I’ve added a few hyperlinks and a video or two to add context).
An Open Letter To Al Gore
Dear Mr. Vice President:
In the dark days of December 2000, when you bravely conceded the election you knew in your heart you had won, you said:
“I do have one regret: that I didn’t get the chance to stay and fight for the American people … especially for those who need burdens lifted and barriers removed, especially for those who feel their voices have not been heard. I heard you and I will not forget.”
Today we respectfully ask that you honor that pledge and hear us now.
You say you have fallen out of love with politics, and you have every reason to feel that way. But we know you have not fallen out of love with your country. And your country needs you now — as do your party and the planet you are fighting so hard to save.
You often quote Winston Churchill to remind us that we are entering a period of consequences with regard to the global climate crisis. You have done a superhuman job of bringing world attention to this issue. But this effort needs to be raised to a higher level. Only from the Oval Office can you wield the kind of influence needed to move countries, policies and corporations to bring about meaningful change.
The period of consequences you talk about is upon us in many other equally critical areas as well. Our Constitution is being trampled and our most cherished civil liberties are in grave danger. The executive branch is not accountable to anyone. And the people most in need of a voice in this country need someone in the White House who will speak for them.
Thousands of Americans are dying needlessly in Iraq while our reputation in the world has plummeted to an all-time low. The war on terror is backfiring as our enemies grow stronger and our resources are drained in an endless and unwinnable war. This is one of the most serious foreign policy crises our country has ever faced.
You were the first American political figure to brave political waters and warn us of the perils of starting a preemptive war in Iraq. You were right. But time to reverse the damage is running out. Given your experience, insight and the respect you enjoy among world leaders, you are uniquely positioned to bring this war to an end and restore America’s good name.
As you so often say, Mr. Vice President, these are not political issues. They are moral issues.
That’s why more than 136,000 people have signed our petition asking you to run for president in 2008. Ours is an urgent call to service on behalf of the country we love, the democracy that’s slipping away from us, and a world and planet that are in peril. We write on behalf of our children and grandchildren and plead with you to to lead us to a brighter future.
Many good and caring candidates are contending for the Democratic nomination. But none of them has the combination of experience, vision, standing in the world, and political courage that you would bring to the job. Nor do they have the support among voters that you enjoy and that would lead you to victory in 2008.
Mr. Vice President, there are times for politicians and times for heroes. America and the Earth need a hero right now — someone who will transcend politics as usual and bring real hope to our country and to the world. Please rise to this challenge, or you and millions of us will live forever wondering what might have been.
Sincerely yours,
Draft Gore,
on behalf of the thousands of our volunteers and the 136,000 people who signed our petition asking you to run for president
Download PDF version here>>
Lessons Learned from Hope Solo
Speaking from personal experience, one of the hardest lessons to learn in business (and sports) is when to shut up.
The latest example? Hope Solo’s venting at a press conference after the disastrous US loss to Brazil in the 2007 World Cup.
Sure she’s right. The coach was a fool. Like most managers who get in above their heads, he tried to play safe soccer, opting for a risk-averse strategy of experience over youth.
How many times have we seen talent getting squelched in the business world thanks to bureaucracy? It’s an old story.
The right thing to do would have been to shut up. Let your racket do the talking, the Aussie tennis players used to say. And they’re right. Sometimes the best thing to do is shut up and let your actions do the talking.
In business, the best way to get back at an incompetent manager is not to quit, but to let your work do the talking for you. Your manager will be fired soon enough. And if that fails, find another job – within the same company, if possible. And failing that, try another company.
Sometimes even that’s not enough. That’s when you have to become your own boss.
The Monk Revolution: Burma Burns for Freedom

This is not the first time that Buddhist monks have stood up for human rights.
Remember this? I don’t, but it helped turn public opinion in Vietnam.
Meanwhile, there are reports that the army has turned against itself. I hope they are true.
Burmese bloggers are being disconnected as the country descends into chaos.
Wonder what the Chinese government is thinking right now…
Vaclav Havel’s Moral Footprint
Here’s a short quote from Havel’s op-ed piece in the NYTimes:
The end of the world has been anticipated many times and has never come, of course. And it won’t come this time either. We need not fear for our planet. It was here before us and most likely will be here after us. But that doesn’t mean that the human race is not at serious risk. As a result of our endeavors and our irresponsibility our climate might leave no place for us. If we drag our feet, the scope for decision-making — and hence for our individual freedom — could be considerably reduced.
Also:
Maybe we should start considering our sojourn on earth as a loan. There can be no doubt that for the past hundred years at least, Europe and the United States have been running up a debt, and now other parts of the world are following their example. Nature is issuing warnings that we must not only stop the debt from growing but start to pay it back. There is little point in asking whether we have borrowed too much or what would happen if we postponed the repayments.
Time to wake up everybody!!>>
Intelligent Aggregation: TheIssue.com
The previous post on this blog just got picked up by theissue.com – which describes itself as a “blog newspaper.”
The site describes itself as follows:
The Issue is a non-partisan blog newspaper that provides a window to an emerging world of diverse and informed opinions. We cull the blogosphere for its wise insights, probing analyses, and diverse perspectives, drawing together a borderless newspaper. By combining the democratization and diversity of new media with the format and editorial standards of traditional news, we hope to offer a hybrid news source that provides the best of both worlds.
Now I don’t usually believe anyone who says they’re non-partisan (all the Republican attack sites do this), but I do understand the concept. In essence, this is a very valuable function, one that delivers real value to the busy reader.
I think we’re about to see a flood of these blog aggregators in the marketspace – many of them tightly focused on niche topics.
The news media is actually fairly weak at blog aggregation, even though it’s a technique which could help them drive traffic and revenue. Especially if they’d embed videos.
Country Branding: China’s Olympic Nightmare
I always warn my clients that taking a half-baked product to market will actually do more damage than good. Now let’s see if the same applies to nation-branding.
The Olympics will focus the media spotlight on China. But will China actually enjoy the focus? Will the Olympics help or hurt brand China?
The hurt has already begun.
In a recent New York Times article “As China Roars, Pollution Reaches Deadly Extremes”, Joseph Kahn and Jim Yardley tell us that “Environmental degradation is now so severe, with such stark domestic and international repercussions, that pollution poses not only a major long-term burden on the Chinese public but also an acute political challenge to the ruling Communist Party.”
Apparently the government has banned publication of data on the subject for “fear of inciting social unrest.”
But the Kahn and Yardley give us some data nevertheless:
– An internal, unpublicized report by the Chinese Academy of Environmental Planning in 2003 estimated that 300,000 people die each year from ambient air pollution, mostly of heart disease and lung cancer. An additional 110,000 deaths could be attributed to indoor air pollution caused by poorly ventilated coal and wood stoves or toxic fumes from shoddy construction materials, said a person involved in that study.
– Another report, prepared in 2005 by Chinese environmental experts, estimated that annual premature deaths attributable to outdoor air pollution were likely to reach 380,000 in 2010 and 550,000 in 2020.
and:
– A World Bank study done with SEPA, the national environmental agency, concluded that outdoor air pollution was already causing 350,000 to 400,000 premature deaths a year. Indoor pollution contributed to the deaths of an additional 300,000 people, while 60,000 died from diarrhea, bladder and stomach cancer and other diseases that can be caused by water-borne pollution.
Wait, there’s more.
An official study to estimate the environmental cost of China’s runaway economic growth was shut down prematurely.
Greenwashing, apparently, is in. Here’s an absurd story which drives the point home: “Villagers in southwestern China are scratching their heads after an estimated more than $60,000 was spent to paint an entire barren mountainside green.”
Whoo-hoo.
Smog from China is contributing to bad air quality and possibly even affecting the climate in parts of the western United States. The Telegraph also reports: “Almost a third of the air over Los Angeles and San Francisco can be traced directly to Asia…”
And now, to make things worse, they’re probably going to beat up the Chinese enviromentalists who dare to speak up. Again from NYTimes:
“At least two leading environmental organizers have been prosecuted in recent weeks, and several others have received sharp warnings to tone down their criticism of local officials. One reason the authorities have cited: the need for social stability before the 2008 Olympics, once viewed as an opportunity for China to improve the environment.”
Ouch.
Nation Branding 101: Embrace reality.
Maybe we can just cheer everyone up by watching a movie:
Tiananmen 2.0 – Chinese Blogger Zeng Jinyan
Arianna Huffington calls Zeng Jinyan, a 22-year old dissident blogger, “the online progeny of Wang Wei Lin, the protester who blocked a column of advancing tanks during the Tiananmen Uprising in 1989.”
I still think about Wei Lin – the poor man was executed 14 days after his brave stand.
I will never forget that moment. The bravery, the tragedy.
China will never be a great country, in my eyes, until Wei Lin gets a posthumous medal from the Chinese government.
Someday.
Back to Zeng Jinyan.
Her blog is in chinese, but take a look at this translation.
“House Arrested Again,” says her T-shirt. Read about her funny T-shirt incident, and pray for her life >>
Dan Gilbert on the relationship between choice and happiness
Sit tight and listen keenly:
South Africa’s Hannes Coetzee
The Best Spice Blog on the Web
And the award goes to Spicelines.com – the best spice blog on the web!
Move over Victoria Beckham! The authentic spice girl is Courtenay Beinhorn Dunk.
She describes herself as an “obsessive cook, style fanatic, avid traveler, reluctant writer, food photographer when the light is right…” Judge for yourself by visiting the Spiceline archives >>
Wait, there’s more. Spices, you see, are part of our global heritage.
Says Dunk:
“The more I traveled, the more I noticed that spices and their flavors are global. It’s the local tastes that are different.
“When I ate fish head curry in Singapore I could taste the earthiness of the cumin that flavors carrot salad in Morocco and tomatillo salsa in Mexico. In Paris at Ze Kitchen Galerie, William Ledeuil used flowery Tahitian vanilla to bring out the sea-sweet taste of perfectly fresh sea bass. In the West we think of cinnamon as a dessert spice, yet at La Maison Bleue in Fez, it was the dominant spice in a savory 14th century lamb and couscous dish.”
Wow.
Check out:
– Aurora’s Chicken Enchiladas in Tomatillo Sauce with Garlic and Cumin
– Salt, Salt Everywhere: The Five Salts You Really Need
– Great Reads: Climbing the Mango Trees, a Spicy Memoir of India
There’s even fiction like this bit – SpiceTales: Claire’s Dream
Whew!
I’ve been so buried lately, that I hadn’t notice that Courtenay has actually answered my request for “butter chicken“… the recipe I’ve been experimenting with for over seven years now. I’ll try it this weekend! Thanks, Courtenay!! 🙂
Japanese Whalers vs. Greenpeace
How ironic is this?
“Imagine you’re the skipper of the mother ship of a Japanese whaling fleet. A massive fire disables the ship’s engines in the frigid waters off Antarctica, and one of your crew goes missing. Who would you least like to hear from right now? That’s right — Greenpeace.”
Read all about it>>
So why are these Greenpeacers so upset at the Japanese? The answer may be here >> [Warning: this is not kid friendly stuff!]
In my eyes, this whaling junk is going to hurt all of Brand Japan. Sort of like our misadventure in Iraq has hurt Brand USA…
Surely Japan can do better.
The Death of the High School Research Paper
The Concord Review flashes a light on the state of the research paper in US high schools.
Apparently fewer and fewer high school students are writing history research papers.
81% of teachers never assign a major research paper (longer than 5000 words). Why? Because no one has the time. Not the teacher, and certainly not the student.
We are still trying to teach a mile wide and an inch deep. And these days, even that mile is shrinking.
Here’s one way to spread the load: make the paper a combined project of both the History and English departments. One grade, two classes.
That’s similar to the way they teach classes in India. You have three classes: History, Geography, and Civics, each one of them a full class, but your “Social Studies” grade was an average of all three. Same with Physics, Chemistry and Biology: three classes, one grade under the title “Science.” And these weren’t watered down classes. They were tough slogs, all of them.
The Concord Review celebrates “varsity academics.” Too bad our culture doesn’t.
The TCR Institute asks:
“When was the last time a college history professor made it her business to find out the names and schools of the best high school history students in the United States?
“When was the last time a college basketball coach sat in his office and waited for the admissions office to deliver a good crop of recruits for the team?
“When was the last time a high school history teacher got scores of phone calls and dozens of visits from college professors when he had an unusually promising history student?
“When was the last time a high school athlete who was unusually productive in a major sport heard from no one at the college level?
“Not one of these things happens, for some good reasons and some not-so-good reasons.”
Let me add to this: “A nation without a knowledge of its history is like a tree without roots.” Wasn’t that Marcus Garvey?
Or let’s put it another way: If Dubya had written his history research paper in high school, chances are we would not be in Iraq today.
Her Majesty’s Royal Podcast
I’m laughing and applauding at the same time.
The Queen of England will address the Commonwealth in her traditional Christmas Day speech, stressing the importance of the relationship between the generations. The Royal Podcast (free MP3 download) will be available here >>
BTW, this is the BBC’s doing–they supplied the file for Her Majesty’s Royal Podcast.
Will she start blogging next?
The real question: does anyone care?
Fred Reichheld: “Drop Lengthy Customer Surveys”
Your next customer survey needs to ask one question, just one:
“How likely would you be to recommend our company to a friend?”
That’s what Mr. Loyalty has been saying for some time now.
And:
“Our research indicates that customer-satisfaction numbers fail to show a consistent correlation with actual customer behavior and growth. Many companies have benefited from measuring customer retention, which provides a vital link to profits. Yet, measuring what we call “net promoters”-the percentage of customers who are promoters minus the percentage who are detractors-is even more accurate and makes the economics of retention more practical and achievable.”
I’ve been asked many times by clients what I think about net promoter scoring when it comes to online business. To which I say, net promoter scores are important online, because people trust their peers, more than they trust Gartner and Forrester for example. So start by make this one question the only question you ask in your online survey!
Jaron Lanier on Internet Mobs
I have never believed in the “wisdom of the crowd.”
Now I feel better because Lanier apparently feels the same way:
“All too many entrepreneurs seem to think that if you reduce the human element, the scheme will become more efficient. Instead of asking people to create videos or avatars, which require creativity and commitment, just watch their clicks, have them take surveys, have them tweak collective works, add anonymous, unconsidered remarks, etc. This trend is lousy, in my opinion, because it encourages people to lose themsleves into groupthink.”
I also like his take on Web 2.0:
“The Web 2.0 notion is that an entrepreneur comes up with some scheme that attracts huge numbers of people to participate in an activity online — like the video sharing on YouTube, for instance. Then you can “monetize” at an astronomical level by offering a way to bring ads or online purchasing to people in your gigantic crowd of participants. What is amazing about this idea is that the people are the value — and they also pay for the value they provide instead of being paid for it. For instance, when you buy something that is advertized, part of the price goes to the ads — but in the new online world, you yourself were the bait for the ad you saw. The whole cycle is remarkably efficient and concentrates giant fortunes faster than any other business scheme in history.”
Ouch.
Snorkeling in a Red Ocean: Yahoo’s ‘Peanut Butter Manifesto’
Read John Hagel’s post “Internet Strategy – Red Ocean or Blue Ocean?” then take a look at this >>
[From the WSJ]
An internal document by Brad Garlinghouse, a Yahoo senior vice president, says Yahoo is spreading its resources too thinly, like peanut butter on a slice of bread. Full text of the document is below.
Three and half years ago, I enthusiastically joined Yahoo! The magnitude of the opportunity was only matched by the magnitude of the assets. And an amazing team has been responsible for rebuilding Yahoo!
It has been a profound experience. I am fortunate to have been a part of dramatic change for the Company. And our successes speak for themselves. More users than ever, more engaging than ever and more profitable than ever!
I proudly bleed purple and yellow everyday! And like so many people here, I love this company
But all is not well. Last Thursday’s NY Times article was a blessing in the disguise of a painful public flogging. While it lacked accurate details, its conclusions rang true, and thus was a much needed wake up call. But also a call to action. A clear statement with which I, and far too many Yahoo’s, agreed. And thankfully a reminder. A reminder that the measure of any person is not in how many times he or she falls down – but rather the spirit and resolve used to get back up. The same is now true of our Company.
It’s time for us to get back up.
I believe we must embrace our problems and challenges and that we must take decisive action. We have the opportunity – in fact the invitation – to send a strong, clear and powerful message to our shareholders and Wall Street, to our advertisers and our partners, to our employees (both current and future), and to our users. They are all begging for a signal that we recognize and understand our problems, and that we are charting a course for fundamental change. Our current course and speed simply will not get us there. Short-term band-aids will not get us there.
It’s time for us to get back up and seize this invitation.
I imagine there’s much discussion amongst the Company’s senior most leadership around the challenges we face. At the risk of being redundant, I wanted to share my take on our current situation and offer a recommended path forward, an attempt to be part of the solution rather than part of the problem.
Recognizing Our Problems
We lack a focused, cohesive vision for our company. We want to do everything and be everything — to everyone. We’ve known this for years, talk about it incessantly, but do nothing to fundamentally address it. We are scared to be left out. We are reactive instead of charting an unwavering course. We are separated into silos that far too frequently don’t talk to each other. And when we do talk, it isn’t to collaborate on a clearly focused strategy, but rather to argue and fight about ownership, strategies and tactics.
Our inclination and proclivity to repeatedly hire leaders from outside the company results in disparate visions of what winning looks like — rather than a leadership team rallying around a single cohesive strategy.
I’ve heard our strategy described as spreading peanut butter across the myriad opportunities that continue to evolve in the online world. The result: a thin layer of investment spread across everything we do and thus we focus on nothing in particular.
I hate peanut butter. We all should.
We lack clarity of ownership and accountability. The most painful manifestation of this is the massive redundancy that exists throughout the organization. We now operate in an organizational structure — admittedly created with the best of intentions — that has become overly bureaucratic. For far too many employees, there is another person with dramatically similar and overlapping responsibilities. This slows us down and burdens the company with unnecessary costs.
Equally problematic, at what point in the organization does someone really OWN the success of their product or service or feature? Product, marketing, engineering, corporate strategy, financial operations… there are so many people in charge (or believe that they are in charge) that it’s not clear if anyone is in charge. This forces decisions to be pushed up – rather than down. It forces decisions by committee or consensus and discourages the innovators from breaking the mold… thinking outside the box.
There’s a reason why a centerfielder and a left fielder have clear areas of ownership. Pursuing the same ball repeatedly results in either collisions or dropped balls. Knowing that someone else is pursuing the ball and hoping to avoid that collision – we have become timid in our pursuit. Again, the ball drops.
We lack decisiveness. Combine a lack of focus with unclear ownership, and the result is that decisions are either not made or are made when it is already too late. Without a clear and focused vision, and without complete clarity of ownership, we lack a macro perspective to guide our decisions and visibility into who should make those decisions. We are repeatedly stymied by challenging and hairy decisions. We are held hostage by our analysis paralysis.
We end up with competing (or redundant) initiatives and synergistic opportunities living in the different silos of our company.
• YME vs. Musicmatch
• Flickr vs. Photos
• YMG video vs. Search video
• Deli.cio.us vs. myweb
• Messenger and plug-ins vs. Sidebar and widgets
• Social media vs. 360 and Groups
• Front page vs. YMG
• Global strategy from BU’vs. Global strategy from Int’l
We have lost our passion to win. Far too many employees are “phoning” it in, lacking the passion and commitment to be a part of the solution. We sit idly by while — at all levels — employees are enabled to “hang around”. Where is the accountability? Moreover, our compensation systems don’t align to our overall success. Weak performers that have been around for years are rewarded. And many of our top performers aren’t adequately recognized for their efforts.
As a result, the employees that we really need to stay (leaders, risk-takers, innovators, passionate) become discouraged and leave. Unfortunately many who opt to stay are not the ones who will lead us through the dramatic change that is needed.
Solving our Problems
We have awesome assets. Nearly every media and communications company is painfully jealous of our position. We have the largest audience, they are highly engaged and our brand is synonymous with the Internet.
If we get back up, embrace dramatic change, we will win.
I don’t pretend there is only one path forward available to us. However, at a minimum, I want to be part of the solution and thus have outlined a plan here that I believe can work. It is my strong belief that we need to act very quickly or risk going further down a slippery slope, The plan here is not perfect; it is, however, FAR better than no action at all.
There are three pillars to my plan:
1. Focus the vision.
2. Restore accountability and clarity of ownership.
3. Execute a radical reorganization.
1. Focus the vision
a) We need to boldly and definitively declare what we are and what we are not.
b) We need to exit (sell?) non core businesses and eliminate duplicative projects and businesses.
My belief is that the smoothly spread peanut butter needs to turn into a deliberately sculpted strategy — that is narrowly focused.
We can’t simply ask each BU to figure out what they should stop doing. The result will continue to be a non-cohesive strategy. The direction needs to come decisively from the top. We need to place our bets and not second guess. If we believe Media will maximize our ROI — then let’s not be bashful about reducing our investment in other areas. We need to make the tough decisions, articulate them and stick with them — acknowledging that some people (users / partners / employees) will not like it. Change is hard.
2. Restore accountability and clarity of ownership
a) Existing business owners must be held accountable for where we find ourselves today — heads must roll,
b) We must thoughtfully create senior roles that have holistic accountability for a particular line of business (a variant of a GM structure that will work with Yahoo!’s new focus)
c) We must redesign our performance and incentive systems.
I believe there are too many BU leaders who have gotten away with unacceptable results and worse — unacceptable leadership. Too often they (we!) are the worst offenders of the problems outlined here. We must signal to both the employees and to our shareholders that we will hold these leaders (ourselves) accountable and implement change.
By building around a strong and unequivocal GM structure, we will not only empower those leaders, we will eliminate significant overhead throughout our multi-headed matrix. It must be very clear to everyone in the organization who is empowered to make a decision and ownership must be transparent. With that empowerment comes increased accountability — leaders make decisions, the rest of the company supports those decisions, and the leaders ultimately live/die by the results of those decisions.
My view is that far too often our compensation and rewards are just spreading more peanut butter. We need to be much more aggressive about performance based compensation. This will only help accelerate our ability to weed out our lowest performers and better reward our hungry, motivated and productive employees.
3. Execute a radical reorganization
a) The current business unit structure must go away.
b) We must dramatically decentralize and eliminate as much of the matrix as possible.
c) We must reduce our headcount by 15-20%.
I emphatically believe we simply must eliminate the redundancies we have created and the first step in doing this is by restructuring our organization. We can be more efficient with fewer people and we can get more done, more quickly. We need to return more decision making to a new set of business units and their leadership. But we can’t achieve this with baby step changes, We need to fundamentally rethink how we organize to win.
Independent of specific proposals of what this reorganization should look like, two key principles must be represented:
Blow up the matrix. Empower a new generation and model of General Managers to be true general managers. Product, marketing, user experience & design, engineering, business development & operations all report into a small number of focused General Managers. Leave no doubt as to where accountability lies.
Kill the redundancies. Align a set of new BU’s so that they are not competing against each other. Search focuses on search. Social media aligns with community and communications. No competing owners for Video, Photos, etc. And Front Page becomes Switzerland. This will be a delicate exercise — decentralization can create inefficiencies, but I believe we can find the right balance.
I love Yahoo! I’m proud to admit that I bleed purple and yellow. I’m proud to admit that I shaved a Y in the back of my head.
My motivation for this memo is the adamant belief that, as before, we have a tremendous opportunity ahead. I don’t pretend that I have the only available answers, but we need to get the discussion going; change is needed and it is needed soon. We can be a stronger and faster company – a company with a clearer vision and clearer ownership and clearer accountability.
We may have fallen down, but the race is a marathon and not a sprint. I don’t pretend that this will be easy. It will take courage, conviction, insight and tremendous commitment. I very much look forward to the challenge.
So let’s get back up.
Catch the balls.
And stop eating peanut butter.
Leadership Secrets Revealed: A Tip for Nancy Pelosi
There isn’t much in the world that hasn’t happened before (except for man-made global warming) that we can’t learn about by reading our history.
Nancy Pelosi recent misstep is not the end of the world. She was being true to her heart, which is not a bad thing in itself.
But there is a lesson to be learned for all leaders from Pelosi: when you get to a higher position, you must grow with it.
And that’s the lesson from Marshall Goldsmith’s new book: What Got You Here Won’t Get You There: How Successful People Become Even More Successful.
Executives who hire Goldsmith for one-on-one coaching pay $250,000 for the privilege. With this book, his help is available for 1/10,000th of the price.
Anyone who thinks they’re a leader should read it carefully.
REWIND: Remember The Cluetrain?
Some of my clients (both B2B and B2C) need to go back in time and read The Cluetrain Manifesto.
Here are the classic “95 Theses” (try substituting the word “market” with “customers” or “friends”):
95 Theses
————————————————-
1. Markets are conversations.
2. Markets consist of human beings, not demographic sectors.
3. Conversations among human beings sound human. They are conducted in a human voice.
4. Whether delivering information, opinions, perspectives, dissenting arguments or humorous asides, the human voice is typically open, natural, uncontrived.
5. People recognize each other as such from the sound of this voice.
6. The Internet is enabling conversations among human beings that were simply not possible in the era of mass media.
7. Hyperlinks subvert hierarchy.
8. In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new way.
9. These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.
10. As a result, markets are getting smarter, more informed, more organized. Participation in a networked market changes people fundamentally.
11. People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.
12. There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone.
13. What’s happening to markets is also happening among employees. A metaphysical construct called “The Company” is the only thing standing between the two.
14. Corporations do not speak in the same voice as these new networked conversations. To their intended online audiences, companies sound hollow, flat, literally inhuman. ‘
15. In just a few more years, the current homogenized “voice” of business—the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th century French court.
16. Already, companies that speak in the language of the pitch, the dog-and-pony show, are no longer speaking to anyone.
17. Companies that assume online markets are the same markets that used to watch their ads on television are kidding themselves.
18. Companies that don’t realize their markets are now networked person-to-person, getting smarter as a result and deeply joined in conversation are missing their best opportunity.
19. Companies can now communicate with their markets directly. If they blow it, it could be their last chance.
20. Companies need to realize their markets are often laughing. At them.
21. Companies need to lighten up and take themselves less seriously. They need to get a sense of humor.
22. Getting a sense of humor does not mean putting some jokes on the corporate web site. Rather, it requires big values, a little humility, straight talk, and a genuine point of view.
23. Companies attempting to “position” themselves need to take a position. Optimally, it should relate to something their market actually cares about.
24. Bombastic boasts—”We are positioned to become the preeminent provider of XYZ”—do not constitute a position.
25. Companies need to come down from their Ivory Towers and talk to the people with whom they hope to create relationships.
26. Public Relations does not relate to the public. Companies are deeply afraid of their markets.
27. By speaking in language that is distant, uninviting, arrogant, they build walls to keep markets at bay.
28. Most marketing programs are based on the fear that the market might see what’s really going on inside the company.
29. Elvis said it best: “We can’t go on together with suspicious minds.”
30. Brand loyalty is the corporate version of going steady, but the breakup is inevitable—and coming fast. Because they are networked, smart markets are able to renegotiate relationships with blinding speed.
31. Networked markets can change suppliers overnight. Networked knowledge workers can change employers over lunch. Your own “downsizing initiatives” taught us to ask the question: “Loyalty? What’s that?”
32. Smart markets will find suppliers who speak their own language.
33. Learning to speak with a human voice is not a parlor trick. It can’t be “picked up” at some tony conference.
34. To speak with a human voice, companies must share the concerns of their communities.
35. But first, they must belong to a community.
36. Companies must ask themselves where their corporate cultures end.
37. If their cultures end before the community begins, they will have no market.
38. Human communities are based on discourse—on human speech about human concerns.
39. The community of discourse is the market.
40. Companies that do not belong to a community of discourse will die.
41. Companies make a religion of security, but this is largely a red herring. Most are protecting less against competitors than against their own market and workforce.
42. As with networked markets, people are also talking to each other directly inside the company—and not just about rules and regulations, boardroom directives, bottom lines.
43. Such conversations are taking place today on corporate intranets. But only when the conditions are right.
44. Companies typically install intranets top-down to distribute HR policies and other corporate information that workers are doing their best to ignore.
45. Intranets naturally tend to route around boredom. The best are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation.
46. A healthy intranet organizes workers in many meanings of the word. Its effect is more radical than the agenda of any union.
47. While this scares companies witless, they also depend heavily on open intranets to generate and share critical knowledge. They need to resist the urge to “improve” or control these networked conversations.
48. When corporate intranets are not constrained by fear and legalistic rules, the type of conversation they encourage sounds remarkably like the conversation of the networked marketplace.
49. Org charts worked in an older economy where plans could be fully understood from atop steep management pyramids and detailed work orders could be handed down from on high.
50. Today, the org chart is hyperlinked, not hierarchical. Respect for hands-on knowledge wins over respect for abstract authority.
51. Command-and-control management styles both derive from and reinforce bureaucracy, power tripping and an overall culture of paranoia.
52. Paranoia kills conversation. That’s its point. But lack of open conversation kills companies.
53. There are two conversations going on. One inside the company. One with the market.
54. In most cases, neither conversation is going very well. Almost invariably, the cause of failure can be traced to obsolete notions of command and control.
55. As policy, these notions are poisonous. As tools, they are broken. Command and control are met with hostility by intranetworked knowledge workers and generate distrust in internetworked markets.
56. These two conversations want to talk to each other. They are speaking the same language. They recognize each other’s voices.
57. Smart companies will get out of the way and help the inevitable to happen sooner.
58. If willingness to get out of the way is taken as a measure of IQ, then very few companies have yet wised up.
59. However subliminally at the moment, millions of people now online perceive companies as little more than quaint legal fictions that are actively preventing these conversations from intersecting.
60. This is suicidal. Markets want to talk to companies.
61. Sadly, the part of the company a networked market wants to talk to is usually hidden behind a smokescreen of hucksterism, of language that rings false—and often is.
62. Markets do not want to talk to flacks and hucksters. They want to participate in the conversations going on behind the corporate firewall.
63. De-cloaking, getting personal: We are those markets. We want to talk to you.
64. We want access to your corporate information, to your plans and strategies, your best thinking, your genuine knowledge. We will not settle for the 4-color brochure, for web sites chock-a-block with eye candy but lacking any substance.
65. We’re also the workers who make your companies go. We want to talk to customers directly in our own voices, not in platitudes written into a script.
66. As markets, as workers, both of us are sick to death of getting our information by remote control. Why do we need faceless annual reports and third-hand market research studies to introduce us to each other?
67. As markets, as workers, we wonder why you’re not listening. You seem to be speaking a different language.
68. The inflated self-important jargon you sling around—in the press, at your conferences—what’s that got to do with us?
69. Maybe you’re impressing your investors. Maybe you’re impressing Wall Street. You’re not impressing us.
70. If you don’t impress us, your investors are going to take a bath. Don’t they understand this? If they did, they wouldn’t let you talk that way.
71. Your tired notions of “the market” make our eyes glaze over. We don’t recognize ourselves in your projections—perhaps because we know we’re already elsewhere.
72. We like this new marketplace much better. In fact, we are creating it.
73. You’re invited, but it’s our world. Take your shoes off at the door. If you want to barter with us, get down off that camel!
74. We are immune to advertising. Just forget it.
75. If you want us to talk to you, tell us something. Make it something interesting for a change.
76. We’ve got some ideas for you too: some new tools we need, some better service. Stuff we’d be willing to pay for. Got a minute?
77. You’re too busy “doing business” to answer our email? Oh gosh, sorry, gee, we’ll come back later. Maybe.
78. You want us to pay? We want you to pay attention.
79. We want you to drop your trip, come out of your neurotic self-involvement, join the party.
80. Don’t worry, you can still make money. That is, as long as it’s not the only thing on your mind.
81. Have you noticed that, in itself, money is kind of one-dimensional and boring? What else can we talk about?
82. Your product broke. Why? We’d like to ask the guy who made it. Your corporate strategy makes no sense. We’d like to have a chat with your CEO. What do you mean she’s not in?
83. We want you to take 50 million of us as seriously as you take one reporter from The Wall Street Journal.
84. We know some people from your company. They’re pretty cool online. Do you have any more like that you’re hiding? Can they come out and play?
85. When we have questions we turn to each other for answers. If you didn’t have such a tight rein on “your people” maybe they’d be among the people we’d turn to.
86. When we’re not busy being your “target market,” many of us are your people. We’d rather be talking to friends online than watching the clock. That would get your name around better than your entire million dollar web site. But you tell us speaking to the market is Marketing’s job.
87. We’d like it if you got what’s going on here. That’d be real nice. But it would be a big mistake to think we’re holding our breath.
88. We have better things to do than worry about whether you’ll change in time to get our business. Business is only a part of our lives. It seems to be all of yours. Think about it: who needs whom?
89. We have real power and we know it. If you don’t quite see the light, some other outfit will come along that’s more attentive, more interesting, more fun to play with.
90. Even at its worst, our newfound conversation is more interesting than most trade shows, more entertaining than any TV sitcom, and certainly more true-to-life than the corporate web sites we’ve been seeing.
91. Our allegiance is to ourselves—our friends, our new allies and acquaintances, even our sparring partners. Companies that have no part in this world, also have no future.
92. Companies are spending billions of dollars on Y2K. Why can’t they hear this market timebomb ticking? The stakes are even higher.
93. We’re both inside companies and outside them. The boundaries that separate our conversations look like the Berlin Wall today, but they’re really just an annoyance. We know they’re coming down. We’re going to work from both sides to take them down.
94. To traditional corporations, networked conversations may appear confused, may sound confusing. But we are organizing faster than they are. We have better tools, more new ideas, no rules to slow us down.
95. We are waking up and linking to each other. We are watching. But we are not waiting.
Special thanks to Levine, Locke, Searls & Weinberger. And John Hagel before them.
Christian Double Loop Marketing™
I always knew that Double Loop Marketing™ facilitates “putting butts in seats” as one of my clients likes to say, but this is just too funny:
“Themed Web sites create buzz, drive attendance swell for two churches”
Exhibit A: mylamesexlife.com
Result: attendance up 70 percent
Exhibit B: mymarriagesucks.info
Result: attendance up 68 percent
Note the use of TV ads and billboards to get attention for the websites.
Although this is not full-fledged Double Loop Marketing™, it is a start. In some ways, this is identical to the microsites the pharma companies keep pitching on TV.
The one problem I see is that these are not sustainable “thought-leadership” based campaigns.
