May the Best Community Manager Win

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In The Vanishing Establishment, Nicholas Confessore cites decentralized organization and fundraising as one of the major assets of the Obama campaign. Hillary, he observes, has been left vulnerable by her old-style, establishment-cozy program of reliance upon an elite few for the core of her support. While she has tapped the relatively small number of heavy-weights in her corner for all they can legally provide, he can continue to collect a little bit from everyone in a widely distributed base of everyday folk.

Razor-sharp focus on high points of leverage was once standard practice for business, government, the media – you name it. Sharply hierarchical organization has long been the vehicle of choice in wealth and power creation from the Roman army to feudalism to the corporation of today.

But these times, they are a-changing. Something to note about what the influential of today seem to have in common: They all pay heed to the self-organized and highly distributed. From Wikipedia to terrorist activity we’re discovering at warp speed that self-organization can work much more effectively than strict hierarchy, and especially so in the production of information goods. And what is politics but the information goods business? Obama, with his highly distributed, self-organized power base, seems the more successful purveyor of information goods to my eye. We shall soon see.

As marketers, we are also in the information goods business. We are also finding out that distributed networks of input drive better and faster product and marketing innovation. Witness Dell’s Idea Storm, a forum for Dell users to share ideas for product improvement. Dell launched Idea Storm after it discovered that a self-organized community of Dell customers and prospects already existed and they were already connected. They were sharing their (sadly, upleasant) Dell experiences on YouTube, blogging about the brand and influencing purchase behavior by a disturbingly large degree. Dell responded to the crisis by harnessing the power of the already connected community and facilitating its growth with Idea Storm.

As she chips away at Obama, it’s becoming ever more clear that Hillary can’t seem to find purchase. Where Obama deftly harnesses the power of the already connected community, Hillary re-tools her message. Where Obama delivers a resonant brand experience to voters, Hillary lodges a “features war”, attacking his product attributes. Where Obama gains momentum, Hillary plays catch up.

As marketers, as business people, we are wise to take a lesson in community management from this increasingly interesting voting season and that is this:

This way of communicating with your community doesn’t work any more: “Listen to me – I’m (better, smarter, faster, more experienced).”

This one does: “Listen to me. I am one of you.”

Malcom Gladwell on Innovation

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I had the good fortune to hear Malcolm Gladwell speak at The Conference on Marketing held in Naples, FL earlier this week. His talk (refreshingly delivered entirely without slides) explored the concept of two distinctive types of creative innovation: Conceptual and experimental.

Conceptual innovation, he argues are those bold, breakthrough ideas that are well articulated quickly and delivered into the world. Experimental innovation is the slow, iterative process of exploration that may happen over a lifetime before it’s gotten right.

Examples of conceptual innovators include Orson Wells, Picasso and Herman Melville. Conceptual innovators tend to peak early – often the value of their output decreasing over time. The highest price Picasso ever fetched for a single painting occurred at the age of 26. Work done in his 60s is valued roughly at 1/4 of his peak prices. And we all know what happened to Orson Wells after Citizen Kane. Not much.

Cezanne, on the other hand, was an experimental innovator. He painstakingly painted the same scenes over and over again, evolving his genius in slow, iterative, baby steps. Cezanne peaked in his 60s, his later work valued at roughly 15 times work done in his 40s. Another experimental innovator, Alfred Hitchcock, explored the thriller genre again and again over a lifetime delivering perhaps his best picture, Vertigo, at the age of 59.

Gladwell argues that much to its detriment, today’s culture has lost patience with the experimental innovators. Musicians are now routinely dropped from the roster if their first single isn’t a blockbuster. Yet the traditional music industry is now in complete free fall according to Gladwell, because “you cannot run a creative business unless you have a combination of Picassos and Cezannes to create lasting value.” Long term, lasting value comes from a portfolio of ideas that include both the bold and groundbreaking as well as those that need iterative experimentation in order to mature.

Moreover, consumers form a very different bond with Picasso and Cezanne ideas. Picasso ideas get a lot of attention, but don’t develop lasting loyalty or significant influence (Friendster who?). Cezanne ideas may take a while to mature, but have much greater impact and create more lasting value over time. The Sopranos, we are reminded, didn’t have much of an audience in season one or even season two. But with a little patience, HBO allowed the writing, the characters and even the audience to mature and the series has now arguably has changed the face of in-home entertainment for a long time to come.

I’d Like to Buy the Virtual World a Coke

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One of the most interesting speakers for me at THE Conference on Marketing held earlier this month in Naples, FL was Michael Donnelly, Global Digital Marketing Director for Coca-cola. He presented the case study of a contest held by Coke to design a virtual vending machine in Second Life. The machine was not to dispense soda cans, but experiences for Second Life avatars.

Examples abound of marketers trying to force fit old media formats into new media. The first web sites were basically print brochures. Most of the branding activity in Second Life still revolves around “impressions” as measured by the number of avatars who wear, drink or otherwise carry around your branded content.

Sure, the Coke design contest winners end up carrying around branded content as well, but the nature of the design contest, to my mind, really leveraged the unique character of the medium. One of the winning designs dispensed snowballs and allowed avatars to engage each other in snowball fights. Certainly a more resonant experience than spending In World currency to buy a virtual can of soda.

Michael’s approach struck me as an example customer-centric marketing at it’s best. Really getting inside the heads of the target audience “Second Lifers” and engaging them in ways they really want to be engaged.

There were a number of other general points Michael made also worthy of repeating:

  • “Criticism leads to conversation marketing. I’d rather somebody tell me something bad than to not tell me anything at all.”
  • “There is a fine line between taking advantage of the community and being a part of the community.”
  • “Always get the advice, council and permission of a community before entering it.”

Evolution: Differentiation by Design

evolutionI caught Malcolm Gladwell talking about conceptual vs. experimental innovation and it brought to mind my favorite business read of 2006, The Origin of Wealth by Eric D. Beinhocker. In it, Beinhocker explores an interesting shift in thinking within the field of economics about the nature, structure and governing forces of economies. Rather than the traditional view that holds an economy as a closed system trending toward equilibrium over time, new thinking explores economies as complex adaptive systems, much like the system of evolution.

Complex adaptive systems are open rather than closed, accept inputs, adapt to those inputs and create outputs. Complex adaptive systems evolve through learning. Examples include financial markets, certain insect colonies, the human brain, manufacturing and the Internet.

A multitude of interactive algorithms govern the growth and morphic nature of complex adaptive systems, but one of the most fundamental is: Differentiate, select, amplify. So the algorithm for evolution – and economic growth – has a differentiation mechanism baked in. Evolutionary change is not spurred by random, accidental mutation, it’s differentiated by design in order to spur rapid learning and adaptive growth.

So what’s the magic formula for differentiation? How many different ideas, products, organic life forms should you put out there in order reach your full creative potential, get the best return or evolve into the most successful species, product or brand?

I just picked up The Black Swan: The Impact of the Highly Improbable by Niassim Nicholas Taleb. I haven’t cracked it yet, but I expect a lot of argument for the value of the bold and the radical. We’ll see.

For now, I’m with Malcolm. Evolution is most successful through a combination of conceptual innovation – the bold and radical, and experimental innovation – the small and iterative. An examination of rich artistic traditions, wealthy economies and successful species reveals a common theme: Those with a history of both small, iterative exploratory change and bold, breakthrough radical change tend to come out in front.

Fuel for the Social Media Bandwagon

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Last week, I heard Forrester’s Charlene Li speak at a business marketer’s luncheon where she gave a comprehensive overview of how social technologies are transforming business. Charlene laid out a framework for how businesses should be approaching the emerging (and at times daunting) consumer-controlled marketplace that nicely dovetailed with Jennifer’s recent post about the Scout Labs Hierarchy of Needs. The basic premise: There are low-level, but critical business needs (like crisis management) that social technologies can and do address readily, and that higher level business needs (like becoming a customer-centric organization) are also very well served by getting across CGM.

When asked about the biggest hurdle companies face when seeking to become more tuned in to CGM, Charlene responded that executive buy in was still a big hurdle for some marketers and by far the single largest factor that contributes to success when adopting a social media strategy.

I caught this piece in the New York Times yesterday that gave a nice list of healthy examples of top executives that have actively embraced the new world of social media. I thought it excellent ammunition for marketers who are looking for convincing arguments to the powers that be that it’s not only time to start listening, but to invest in tools and best-practices for keeping up with consumer-controlled conversations.

If that doesn’t do the trick, keep your eye out for Charlene’s soon to be released book, Groundswell: Winning in a World of Social Technologies, in which I’m sure the case for a well-supported social media strategy at will be aptly made.