What’s The Future Of Business? Comes With An Incomplete Answer

When I review books here on AdPulp, I don’t talk about whether I like a book or don’t like it, or whether it’s well-written or not. I simply try to answer the question, “What would AdPulp readers learn by reading this book?” With that mind, I confess: I simply don’t know what to make of Brian Solis’ new book, What’s The Future Of Business? Changing The Way Businesses Create Experiences.

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I’ve reviewed Solis’ other books, and there’s always plenty of material to chew on that reflects current marketing theory. This time around, we get an introduction to “Generation C” (for “connected”), a sales cycle centered around various “Moments of Truth,” as well as a large heaping of adapt-or-die imperatives for companies that aren’t putting customer needs first. But really, it’s nothing anyone who’s picked up a Fast Company magazine hasn’t read 100 times before.

The “experiences” Solis talks about creating are primarily rooted in all things digital, social, and mobile. There’s a lovely bit of irony here for all of Solis’ digital-centric preachings: The old-school, dead-tree, hardcover edition is fairly slick and well-designed for print. A square-sized book, with large inspirational quotes, infographics, and a nice selection of Hugh MacLeod cartoons. There’s plenty of eye candy to explain how Solis envisions customer-brand connections, 2013-style. The content might make for a dynamic presentation in Projeqt but hardcover books still seem more impressive these days, I suppose.

And what’s lost in the engagement/experience/empowerment/disruption buzzword bingo is a real answer to the question, “What’s the Future of Business?” Because once you think outside the social media bubble Solis focuses on, the future looks quite complex and cloudy: Globalization, product customization, strained natural resources, re- and de-regulation of industries, downward pricing pressures on businesses, and cash-strapped consumers don’t get much attention here.

All Solis ever seems to say is that the future is rapidly changing, and that’s nothing new. If you’re working in a company where reaching customers in today’s market is a constant battle, and your organization’s leaders seem truly lost, you might try floating some of Solis’ thinking with his charts and graphs to support you. “What’s The Future of Business” will give you a lot of jargon-laden ammunition that might either make you sound convincing or get laughed out of the room. You’ll have to see for yourself which one it’ll be.

Special thanks for FSB Associates for providing me with a review copy.

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Yahoo! CEO Marissa Mayer Gathers The Troops

Location, location, location. It’s more than a Realtors’ call to arms today. Some of the nation’s most influential business leaders are promoting the value of face time and physical proximity.

Opportunities flow through congregations of people. Those with good ideas and information tend to hang out with one another,” Reid Hoffman of LinkedIn wrote recently. He added, “Collaboration happens best when information and ideas can bounce quickly to and from all the interested parties, ideally in the same physical place.”

Maybe Yahoo! CEO Marissa Mayer got Hoffman’s memo (or the two were on already the same page). Because here’s an except from a newly delivered internal Yahoo! HR document, acquired by Kara Swisher at AllThingsD:

To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side. That is why it is critical that we are all present in our offices. Some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings. Speed and quality are often sacrificed when we work from home. We need to be one Yahoo!, and that starts with physically being together.

Yes, Mayer is calling for all Yahoos to gather daily in the same space and work as a team to advance the ball. Of course, some may be asking themselves what century Mayer is living in. WordPress founder Matt Mullenweg, for one, countered, “Automattic is 100% committed to being distributed. 130 of our 150 people are outside of San Francisco.”

What do you think? Have you had positive or poor experiences working from a distance?

I worked remotely for BFG Communications for a short time. Also, AdPulp and Bonehook both rely on distributed teams to get the job done. So, you might say I am a big proponent of this model. You’d be correct, but I am also keenly aware of the value of the live team dynamic. Skype isn’t the same as being in a room together, and email or IM isn’t the same as working through a problem verbally. We’re human beings, we need to see each other laugh, smile and frown. We need to rely on one another, like wolves.

For me, the question isn’t whether to work in the same office or city or not. The question is how frequently does the team gather? The more often the better, because “out of sight, out of mind,” is real. In my opinion, a well functioning distributed team needs to meet regularly in person to help strengthen the human bonds that drive important projects and business forward.

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Leadership Conversations Challenges Us To Move Up If We’re Ready

What does it take to be a leader in an advertising industry or marketing firm? As I’ve noted before, many great copywriters and art directors don’t make great creative directors. It’s a different set of skills. And sometimes, for the agency or the person, this discovery is made too late — either after a promotion or after someone has left an agency for another, better opportunity.

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For a closer look at what professionals need to become effective leaders, there’s Leadership Conversations: Challenging High-Potential Managers To Become Great Leaders by Alan S. Berson and Richard Steiglitz.

What Berson and Steiglitz do very well is here to ask probing questions of the reader. They lay out all the skills required of leaders and the specific sets of issues and decisions leaders often has to make. The examples they use are mostly from non-advertising and marketing companies, along with academia and government. But the core of their information can be applied to our business, and that makes Leadership Conversations a valuable book for folks seeking to climb higher in their career.

Special thanks for Wiley for providing me with a review copy.

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Threading The Needle On Customer Empowerment

Threadless is on the cover of Inc.

Jake Nickell and Jeffrey Kalmikoff, two north side of Chicago graphic designers figured out how to create community and a thriving business in the same move. Academics, venture capitalists and the entrepreneurs who read Inc. are paying attention.

Threadless is at the vanguard of a new innovation model that is quietly reshaping a host of industries. Whether it’s called user innovation, crowdsourcing, or open source, it means drastically rethinking your relationship with your customers. “Threadless completely blurs that line of who is a producer and who is a consumer,” says Karim Lakhani, a professor at the Harvard Business School. “The customers end up playing a critical role across all its operations: idea generation, marketing, sales forecasting. All that has been distributed.”

Threadless runs design competitions on their site where members submit their ideas for T-shirts — hundreds each week — and then vote on which ones they like best. Threadless produces the most popular designs and sells them via their online store and at their new retail location in Lakeside.

Revenue is growing 500 percent a year, despite the fact that the company has never advertised, employed no professional designers, used no modeling agency or fashion photographers, has no sales force, and enjoys no retail distribution, except to their own store. Margins run above 30 percent, because community members tell them precisely which shirts to make – and every product eventually sells out. Threadless has never produced a flop.

Surprise And Delight Your Customers (Or Go Home)

Joseph Lelyveld, a Pulitzer Prize winning journalist, and former executive editor of The New York Times from 1994 to 2001, speaking to India’s Sunday Express:

I’ve always mistrusted that phrase “the reader wants”, because how do we know exactly what the reader wants? I think you should give the reader a fresh and original paper that’s very well-written and covers all sorts of things —social trends, fashion, the works but I think you are at your best when you give the reader something the reader wants that the reader didn’t know he or she wanted it till you gave it to her.

Which leads me to ask why this concept is so hard for people in advertising to understand. In our case, the “reader” is our client and, more importantly, our clients’ millions of customers.

I believe we are obligated to over-deliver. We have to “give ’em what they ask for” and we need to “give ’em what we believe will work.” But many of us–account execs and creatives–refuse to go the extra mile. It’s more work and it’s not on the long list of client demands, so it’s not that important.

It’s only important if doing the best work of your career is important.

Microsoft Might Have To Grow Its Own

Microsoft badly wants a piece of the online services and advertising action, estimated to be worth $80 billion a year by 2010. But not bad enough to pay $35 a share for Yahoo.

Microsoft’s bid to acquire Yahoo ended yesterday at 4:00 p.m. in a letter from Steve Balmer to Jerry Yang.

“I still believe, even today, that our offer remains the only alternative put forward that provides your stockholders full and fair value for their shares. By failing to reach an agreement with us, you and your stockholders have left significant value on the table. But clearly a deal is not to be.”

My translation: What, our money isn’t good enough? Up yours, Yang.

“This process has underscored our unique and valuable strategic position,” Yahoo CEO Jerry Yang said.

“Yahoo is not a strategy; it’s a part of a strategy,” Ballmer told employees on Thursday.

[via The Seattle Times]

Arnold’s Non-Metaphorical Media Lab

What’s Arnold’s Chief Creative Officer, Pete Favat, up to? Last year the agency hired cognitive scientist Dr. Lisa Haverty to run an intuition analytics department. Now, the agency has announced a research and development lab tasked with creating new media channels.

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“I think…I’m creating jobs I want to live vicariously though,” Favat told Creativity.

“I wanted to put a couple of people in place who are not concerned with or thinking about the day-to-day brand messages, with what we have to do for Jack Daniels, truth, or Tag, but are coming up with software, coming up with different technologies, whatever we can to dispense new ideas out in the world,” Favat says. “I told them ‘The day you guys think about certain brands is the day you lose your job.’ Their mantra is to just play; I don’t want them to ever worry about being attached to a client.”

Ryan Habbyshaw, 25, an agency art director/designer, and Todd Vanderlin, 23, who studied at Parsons School of Design are the two explorers. They report to creative director Meg Siegal.

Rockafellas Take A Stand

I have not purchased gas from Exxon since the Valdez oil spill. Yes, I’m a grudge holder.

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According to the The Wall Street Journal, forces inside the oil giant are working to move the tanker in the right direction (not than anything Exxon does will ever win me back).

A majority of 300 adult members of the wealthy Rockefeller family, influential shareholders of Exxon, voted to support four shareholder resolutions at the company’s annual meeting in late May. The proposals include urging the company to create an independent chairman post, cut greenhouse-gas emissions and examine whether Exxon should take a more active role in developing sustainable energy technologies.

While most of these issues have been raised before by shareholder activists, the addition of voices from the Rockefeller family, who are well known for supporting environmental causes, adds considerable weight to the calls for change. Several members of the family will be holding a news conference Wednesday to discuss their concerns about Exxon’s direction.

Nice Concept: Sustainable Innovation

Research in Motion founder Mike Lazaridis spoke to BusinesWeek about innovation, management theory and other hot topics of the business day.

Here’s a small part of what he has to say:

If you really want to build something sustainable and innovative you have to invest in R&D. If you build the right culture and invest in the right facilities and you encourage and motivate and inspire both young and seasoned people and put them all in the right environment—then it really performs for you. It’s what I call sustainable innovation. And it’s very different from the idea that you come up with something and then maximize value by reducing its costs. But building a sustainable innovation cycle requires an enormous investment in R&D. You have to understand all the technologies involved.

I see a lesson here for the ad biz. I often think of ads as communications products. But we don’t do traditional R&D in Adlandia (not on our own “products”). Maybe that needs to change. Don’t we want to advance our thinking as the markets we serve advance? Of course we do. But is there one person inside your agency working on this challenge? Is there two, ten or twenty?

It’s been said that an agency can’t all of a sudden become “creative”—that its ability in that area is coded in the shop’s DNA. If you buy that, then there’s either a culture that spurs innovation at the agency, or there isn’t. What do you think? Can the agency biz learn from RIM and improve its product via R&D?

Less Is More

Media entrepreneur, Om Malik, had a heart attack three months ago. Since then, he’s quit smoking, consumed less meat and started an exercise routine. He’s also retooling how he works.

Simplification Through Elimination

I was reading a review of the Macbook Air over on Macworld when I realized that the machine and post-recovery me have a lot in common. I have to be very careful as to how I use my mental and physical resources, for there is a high risk of relapse. Similarly, the Macbook Air comes with miniscule amount of storage space, so one needs to be careful about how to use it. The machine’s battery power limitations remind me of how much time I have to devote to work on a daily basis.

It has been hard to use the Macbook Air as my primary computer, just as it’s been hard to change all those pesky “little things.” Indeed, the Macbook Air is an acquired taste. It’s also an apt reflection of an effective “simplification through elimination” strategy.

Three months on, I am looking to eliminate a number of things from life: excessive public appearances, too much travel and many, many RSS feeds. I am going to cut down the effort I spend on certain projects and focus on making the most of what we have at hand.

The Macbook Air as simplifier is an intriguing idea. Maybe I need to get one. I noticed in response to Om’s piece that Steve Rubel says he only keeps two apps open on his desktop at a time–Safari and Mail. I currently have 12 apps open.

Trade Mag Pushes Into Comedy

Simon Dumenco of Ad Age made me laugh this morning.

Now that Web 2.0 seems, with each passing day, to be less and less magical — what with softening click rates and the rising realization that it’s going to be insanely difficult to effectively monetize social networking — “Don’t be evil” sounds increasingly hilarious. If anything, the old-media titans and new-media boy geniuses defining the future of the web are in a battle to out-evil each other.

That may not be the funniest paragraph in Dumenco’s opinion piece, but it delivers his thesis.

For Many Corporations, Transparency Is Still A Joke

Charles Handy, an Irish author specialising in organisational behaviour and management, used the stage NPR’s Marketplace provided him to call for reform.

The tall towers that house our corporations are the new palaces of our day, the places where real power resides, but those towers are full of paradoxes. Made of glass, you can’t see inside. They’re pillars of our democracy, but they are run as totalitarian states. Their names are reduced to a set of initials. Their leaders are unknown to those outside. They are accountable, for the most part, to other institutions that sit in similarly anonymous towers. To the average person, they are foreign entities shrouded in mystery. It is no wonder that we look at them with suspicion, touched with envy.

When you see it laid bare like this, it’s hard to justify what we in Adlandia often do. Namely, the putting of a pretty face and a nice voice on top of these lurking, shadowy entities.

The Definery

Diego Rodriguez, a partner at IDEO, endeavored to define marketing recently.

He came up with a short version:

Identifying desirable experiences, then delivering them.

And a longer one from Harvard Business School:

Marketers concern themselves with acquiring and retaining customers, who are the lifeblood of an organization. They attract customers by learning about potential needs, helping to develop products that customers want, creating awareness, and communicating benefits; they retain them by ensuring that they get good value, appropriate service, and a stream of future products. The marketing function not only communicates to the customer, but also communicates the needs of the customer to the company. In addition, it arranges and monitors the distribution of products and/or services from company to customer.

Less Ambition, More Humbition

Mavericks at Work explores a new addition to the workplace lexicon—humbition.

What’s humbition? It’s a term Polly and I first heard from Jane Harper, a nearly 30-year veteran of IBM. It is, she explains, the subtle blend of humility and ambition that drives the most successful leaders—an antidote to the know-it-all hubris that affects so many business stars. “The more I know,” she says sensibly, “the more I know there is to know.”

I’m sure we all work with and for people who could improve themselves with this advice. Not that we don’t need to take a spoon or two of it ourselves, just for good measure.

Marketing Dollars Migrate To Strange New Places

I like Tom Asacker’s writing so much I asked him to be part of the team here. But even that’s not enough Tom Asacker. For more we turn to a comment string on Brand Autopsy.

…there are many companies in the CPG industry who are indeed dabbling in the social media space, as well as investing heavily in R&D to innovate for their customers. However, traditional advertising drives the lion’s share of their business. To suggest they focus that investment elsewhere, without specifying where and what results to expect, doesn’t really advance the marketing dialogue, IMHO.

This was a repsonse to Brand Autopsy’s John Moore, who wrote:

I believe advertising in the sense of blasting commercial messages at consumers is dead. I believe more in spending marketing dollars to make the product/service better, not to make the advertising “better.”

My interest in picking this up here is to see where we can take it. Spending marketing dollars on non-marketing activities sounds kind of radical and I usually like radical, but perhaps not this time. Then again, if you were in the CMO seat and had the ability to help a sister in R&D out with some of your allocated marketing funds, why wouldn’t you?

Suttonistic Thinking

Cherryflava points to a story in Architectural Record about design firms working to foster a culture of innovation.

Hire naive misfits who argue with you; encourage failure; avoid letting client input limit your vision; and fully commit to risky ventures. This is an extreme approach to fostering innovation in an otherwise relatively static office environment that was proposed by Robert I. Sutton. Writing in the Harvard Business Review in 2001, Sutton argued that fresh perspectives derive from mavericks with wildly diverse backgrounds and no preconceptions who challenge the status quo, champion their own ideas, and illuminate the metaphorical darkness.

Sutton points out that ignoring client input may seem counterintuitive, but clients can’t always imagine what’s possible. Ted Hoff, an inventor of the microprocessor, echoed that sentiment the next year, also in Harvard Business Review: “Don’t do what the customer wants; do something better.”

“Avoid letting client input limit your vision” is pretty advanced thinking (that might work in the academy), but also a necessary coping mechanism in advertising, because there are always ten reasons why you can’t do something, for every one why you can.

Dream of Californication

Hugh MacLeod, who occasionally consults for Microsoft, has some interesting thoughts on their pursuit of Yahoo.

The thing that might save MSFT long-term is a massive infusion of Silicon Valley DNA. That’s why I think they’re offering Yahoo the $40billion.

All companies, no matter what the size, have a their own, unique cocktail of four different forms of capital- Financial, Intellectual, Technical and Cultural. Microsoft is relatively fine with the first three. But in the next few years, it’s with Number Four that the really BIG problems AND BIG opportunities will show themselves.

Hugh might be right, but I can’t quite imagine Gates and Ballmer owning the fact that they’re not made of the right stuff.

BONUS LINK: Red Hot Chili Peppers live at Slane Castle

A Call for Curators

Steve Rubel calls content a commodity and says the “Attention Crash” is real and that it’s only going to get worse. Of course, he wouldn’t say those things without offering a remedy.

Enter the Digital Curator.

Information overload makes it difficult to separate junk from art. It requires a certain finesse and expertise – a fine tuned, perhaps trained eye. Google, memetrackers such as Techmeme and social news sites like digg are not curators. They’re aggregators – and there’s a big difference.

The call of the curator requires people who are selfless and willing to act as sherpas and guides. They’re identifiable subject matter experts who dive through mountains of digital information and distill it down to its most relevant, essential parts. Digital Curators are the future of online content. Brands, media companies and dedicated individuals can all become curators. Further, they don’t even need to create their own content, just as a museum curator rarely hangs his/her own work next to a Da Vinci. They do, however, need to be subject matter experts.

Rubel goes on to say curators are not editors. I veer off at that point. The act of sifting through vast collections and offering the juiciest parts is, in fact, a form of editing. I’ll also challenge his claim that brands need to be “subject matter experts.” Not exactly. But they do need to know who the “subject matter experts” are, and then hire them to curate and/or create content. Redken’s OutofTown.tv, where they turn to Flavorpill for expertise, is a good example.

Be The Network

I’ve mentioned before how well Scott Karp wraps his mind around the big media topics of our day. He does it again as he considers the MicroHoo! marriage.

The main problem with Microsoft and Yahoo, looking forward, is that they are not web-native companies — they rely on centralized control models, rather than distributed network models — thus they are not aligned with the grain of the web, which is a fundamentally a distributed network.

Microsoft and Yahoo rely on software lock-ins (Windows, Office, IM clients, web mail) to maintain their user bases — but without distributing any of that value to the network or harnessing the value that the network would give back if they did. As such, they do not benefit from network effects, which is precisely what powers Google — and why Google will likely still beat a combined Microsoft/Yahoo.

Google’s Stock Slides. Executive Team Says, No Worries.

In this day of quarterly numbers and short-term decisions, it’s refreshing to see a company move counter to this trend. According to The Wall Street Journal, Google is such a company.

Messrs. Brin, Page and Schmidt made it starkly clear in Google’s so-called “Owner’s Manual,” filed as part of the company’s IPO prospectus in April 2004, that they would not shy away from making big long-term bets at the expense of short-term gains.

“If opportunities arise that might cause us to sacrifice short-term results but are in the best long-term interest of our shareholders, we will take those opportunities,” the document says. “We will have the fortitude to do this. We would request that our shareholders take the long-term view.”

Google shares have sunk 22% in the past month as the search and ad giant looks to move into the mobile business by purchasing at auction rights to the 700 MHz spectrum. The price of entry is expected to be in the billions.