1. New Ideas Blog:

    A posting of thinking we like.

  2. Pollinators: The New Breed Of Innovators

    Walk into any corporate headquarters these days and you’ll find either a parking lot of empty cubicles or, more happily, a busy office hive filled with temporary hires contracted to work on time/task specific projects may work for days, weeks, or months, depending upon what they have been hired to do.

    Whereas taking a short-term gig may have been viewed as a sideways or even downward move once upon a time, today many professionals—and the companies who hire them—are seeing the advantages of an untethered work force that buzzes in and out of companies, moving from project to project, cross-pollinating ideas (and companies) as they go. As a result, this new breed of “pollinators” has become one of the most dynamic and innovative segments of our workforce.

    “Companies are either culturally for using external consultants,” says Nicole Ertas, a pollinator living in the Seattle area. “Or they feel it’s demoralizing for their internal culture and prefer to have everything happen internally.”

    Like Ertas, Pollinators may have been in “Top 40 Under 40” lists, or recently moved to a new city. They may be young college graduates trying to eke out their place in corporate America. Or they may be experienced mid-level practitioners desiring to opt out of corporate cube culture. Whether their background is in fashion, beverage, health and wellness, financial, consumer packaged goods, manufacturing, sales, technology or elsewhere, they’re carrying a bigger basket of experience in their backpack wherever they go.

    “Being an independent consultant allows us invaluable experience,” says Denmark Francisco, a 28-year old in interactive media and digital marketing strategy. Francisco moved recently from Manhattan to Hong Kong for a project, and claims that moving from project to project builds an experience and knowledge base he would not get at a single job. “I get a chance to see what really works in the market,” says Francisco. “There may be variables in a situation,” he adds, “but there are also similarities. We transfer what we know has worked.”

    As companies run pell-mell to find innovative ideas for new products, services, and new ways of doing business. Within the bounds of nondisclosure agreements, these Pollinators are helping make organizations use external talent intelligently to be more innovative, more competitive, and less stuck in “this is how we do it here” silos.

    “You can’t use external talent to do something an employee is supposed to be doing,” advises Ertas, who has worked on- and off-staff at big brands like S.C. Johnson, Jim Beam, Wrigley, Mike’s Hard Lemonade, and others. “Instead, companies hire us short term to solve the problem and then get out.”

    Pollinating is a platform that allows people to share and let everybody grow, while extracting the golden honey called ideas.

    Does it work?

    “Absolutely,” says Mitra Best, who is pioneering innovation as US innovation leader at PricewaterhouseCoopers. The firm does not have an exact number for outside hires, but the impact is significant. “We bring in catalyst hires to bolster thinking in an area.” One of those hires founded their Health Information Technology practice. “He brought in ways of solving problems that were very different,” says Best.

    Being different is not always good for its own sake, but being different can send the rockets of innovation soaring.

    “If you put people who think similarly together, the chance of coming up with new ideas keeps diminishing,” says Best. “If you want to accelerate new thinking, you put people from different perspectives together. Apply different filters to the same problem, and you get huge results.”

    “The experience is exponential,” agrees pollinator Ertas. “The more brands and situations you’re challenged with, the more you’re going to have in your arsenal on how to handle challenges and opportunities. Unless you have people who have exposure to that breadth, you’re going to be limited in what you consider for innovation. You might be considering line extension, when you should be doing a channel overhaul.”

    Pollinators can also help spread the love. Externals are often allowed access to other business units and upper management that regular staffers don’t get, due to internal hierarchies. “We talk to everybody in the company, from to lowest to highest,” says Francisco. “So it helps us understand the various perspectives within the organization. Staffers don’t get that opportunity because they’re stuck in their role or cube all day.” For example, most places treat analytics and creativity separately, marketing is doing one thing and IT is doing another. “We can help bring those disciplines together,” says Francisco.

    Another perspective is that brand managers are so immersed in their brand, they see everything through that lens. Pollinators, however, see the world through the lens of the consumer. That consumer has a multitude of needs beyond a single brand: food and beverage needs, fashion, health care and financial problems. When the brand manager is looking through the eyes of the brand, they may get to solutions, but they may not get there as quickly or take that left turn that creates dramatic results.

    From outside to inside to outside and back again creates a boisterous dynamic.

    Situations, projects, categories, companies, challenges and opportunities are all different. People who are working cross-functionally are going to be accelerators of innovation, thanks to their spectrum of experience. “Whereas the traditional manager may work on three brands over a couple years,” agrees Ertas, “the cross-pollinator works on a dozen or more categories, products, or channels and is exposed to so many challenges, categories, brands/products in different life stages, different channels—sometimes at the same time.”

    A Pollinator who has worked both sides of the fence adds, “If a company wants to get best of breed from concept to market,  they can bring in a fabulous innovator, then contract a fabulous executor. Then, finally, someone who is very smart about market tactics and commercialization. Traditionally, companies try to get brand managers to engage in all three functions but, in reality, these are all very different practices.”

    But being a Pollinator is not all blue skies. Although they are noticeable (or just notorious) in their luxe eyeglass frames, Starbucks and backpacks, Pollinators are brought in to work quickly. It is a concentrated blend of hard work, long hours, and ultimately high risk. “You’re usually working for C-suite clients,” says a Pollinator. “And at that level, they just want to get the work done.” If you fail, you fail completely.

    There’s also the soft tissue stuff about being a stranger in a strange land.  “Not every place is fun to work,” says one person who remains anonymous. “The management, the structure, sometimes the culture is not a good fit for your mindset.”

    Outsiders can unwittingly step on toes. “We’re not trained on processes inside the company itself, which can be super challenging,” says one expert. “Sometimes it’s just the paperwork to get things done—estimates and invoicing. How do you fit into their established practices? We don’t have to play the politics.”

    Pollinators can also be local. Case in point Ted Souder, head of industry and part of the retail pod at Google. Souder was sent from his Chicago base to Paris, where he gained experience in new markets including Africa and the Middle East. “Paris was extra exciting,” says Souder, “because I didn’t know anyone and didn’t speak French—which is as outside the comfort zone as you can get.”

    As a catalyst for global diversity, innovation and community, Google has innovated a program for people to take on new roles in other geographies, so they can expand their skills and bring back ideas from other parts of the world. (In other words, pollinators.)

    “I spent a year in Europe and the Middle East and I switched verticals,” says Souder. “That gives me a whole new perspective that others at my level don’t necessarily have. The opportunity now is to bring back what I saw people doing in Europe. I think it’s going make our U.S. team more effective.”

    Example? “In the U.S. we tend to be a bit more forward in our approach about selling—more pushy,” says Souder.  “In Europe it’s more about developing relationships—people buy because of the relationship they have with their partner. We can learn from that.”

    “Right now we’re in the midst of the acceleration of everything,” says Google retail industry director Julie Krueger. “We have a globally diverse audience, so we need an internal culture that is constantly innovating, learning, sharing. At Google, we are vertically structured into travel, retail, finance, health care. What happens over time is that you can get stuck in your vertical.

    “But that doesn’t mean that you can’t learn from someone in finance or health. They might have come up with a phenomenal solution—and if everyone doesn’t hear about it, that’s a problem. We have to share best practices internally between geographies. Even with over thirty thousand employees, we’ll eventually become a smaller company because of the relationships that are being developed.”

    This, of course, is why we hire new people in ordinary times: to extract their fresh thinking before they get mired in office dogma. But in extraordinary times such as these, the old mantra, “we hire geniuses and fire fools” wears thin. Big can become bland and sometimes it needs a poke.

    Mitra Best at PwC agrees. “We have so many areas of expertise, it is very possible that you can come in and not touch any other part of the company,” she says. “One of our missions is to develop initiatives that bring together people from different areas of the firm so they can cross-pollinate.”

    When PwC recently acquired two strong consulting firms, instead of allowing headhunters to come pick off their best people in the change cycle, PwC worked hard to integrate the two cultures. “Blending those diverse cultures has made us a more fertile environment,” says Best. “And [adds] more value to our clients.” Which is why they merged in the first place.

    The downside of the recent economic layoffs is that that well-trained, experienced individuals have been let loose into the workforce. The upside is that these people are buzzing with knowledge and experience now available to everyone. Their influx is forming a dynamic that is accelerating rapid, positive change. “This is a very volatile time,” says PwC’s Mitra Best. “You can only meet the challenges if you are innovating,”

    “If you’re not in it, you’re just reading about it,” concludes Ertas. “You really have to be in it.”


  3. Great minds do not think alike

    Most people wait for annual conferences like TED, PopTech, SXSW to meet great thinkers, but Thinktopia® an award-winning strategic brand innovation firm based in New York City and Minneapolis, makes it part of everyday work life.

    “Great minds do not think alike,” says Chief Operating Officer Susan Cantor. “We make sure we bring in fresh perspectives, exciting minds and personalities. It’s less like a think tank and more like a running stream of ideas. The key is to make it relevant to the client’s problem and opportunity.”

    These spontaneous inspiration tanks have included Robyn Waters, former head of design at Target stores. Craig Tanimoto, the creator of Apple’s famous “Think different” advertising campaign. Punk Marketing co-author Mark Simmons, award-winning furniture designer Paul James, “The Ten Faces Of Innovation” author Jonathon Littman, IDEO alum Scott Underwood, and a roving troupe of social anthropologists, cultural enthographers, trend spotters, research analysts, graphic designers, urban planners, innovation experts, stylists, retail experientialists, cool hunters, forensic researchers, futurists and more.

    “Clients do not like having to rely on the same tired faces,” says Cantor. “The flexibility of bringing in top minds to look at their specific challenge or opportunity—even bringing people they usually only read about—is exciting. The energy level goes up and everyone brings more to the table.”

    “The perspective Thinktopia brings to the ideation sessions—and the expertise of their experts creates a rich atmosphere from which to create ideas,” remarks Tiffany Stroupe, a former Manager of Consumer Insights at Taco Bell who now works at Hyundai. “I love the way these guys think!”

    Bringing in front page talent is just one way Thinktopia adds brain power—they also encourage teams to seek out brainwaves within their own company. “We make a practice of suggesting that brand teams bring in others from product R&D, finance, national sales, operations, even store managers,” says Cantor. “All these people may work together functionally, but rarely are they ever in the same room together. Except perhaps at the Holiday Party.”

    This so-called “Medici effect” (coined in a book by Frans Johansson) combined with Thinktopia’s own proprietary process, permits key stakeholders to look at their products and services in completely new ways.

    “We are accustomed to looking at big open categories like wellness, payments, trends, and the shifting tectonics of today’s marketplace,” says Thinktopia ceo and founder, Patrick Hanlon. “When we launch new products and re-engineer existing ones, our goal is to build community around these products and services.

    “That community begins inside the company first, before it ever goes out to the consumer. If you don’t believe in your product or service, you’ll never be able to convince your customers—let alone upper management. Bringing in fresh perspectives, even people from other categories or disciplines, not only helps put a different lens on things. It helps shape that community.”

    The results are revelatory and actionable. The outcomes can be new products, new distribution models, new packaging, communications ideas and, best of all, a new vision and refreshed brand narrative that moves the team forward.

    “If you don’t know where you’re going, you’ll never figure out how to get there,” concludes Cantor.


  4. What every marketer can learn from Saab’s crash and burn

    This week marked the dead end for Saab motor car company. And they should cause a deathly chill to run down the spine of any marketer who believes they can get by, just by getting by. Undifferentiated in a market filled with hundreds of cars to choose from, Saab sought to find its place in the world.

    Even from the beginning, the imported car company struggled to find a narrative. Quirky, eccentric, yet nonetheless adroit at finding enough niche to eke out its existence, the car became the darling of an intelligentsia willing to forgive the brand its shortcomings and create a brand narrative for the car on their own. The product became, by default, a thinking person’s car. The company’s owners, from SAAB to General Motors, to the thin vapors of financing from both the Swedish government and Chinese investors, were less forgiving and brought the company to a screeching halt.

    But there’s a lesson we can all remind ourselves from Saab’s sad demise. Namely, a brand that cannot sit across from a buyer (whether a consumer, or buyer at Walmart or Target) and tell them where they’re from, what they’re about (how they’re differentiated), what identifies them in the market, how they’re used, the language they use that surrounds their community, what they’re not and never want to become, and who’s steering the way—they will ultimately fail. Saab’s lifespan from 1947 to 2011 is not as long as Levi’s, Kraft, or even its auto import counterpart VW, which is still rolling.

    Founded in 1947, SAAB was an acronym for Swedish Airplane AB, a company that manufactured airplanes. While every advertising agency that handled Saab created some advertisement that featured jets (one had a Saab car racing a Saab aircraft down the jetway), it was not until Lowe NYC created their “Born from jets” line that Saab’s origins started to gain traction.

    While we may scoff at seeing historical footage of Mercedes, Porsche and Chevrolet on the world’s speedways, or crusty black and white film of Henry Ford inside his factory, the creation myth is the foundation of meaning. It is an inherent human desire to know where things come from. If you want to be my friend, I need to know where you’re from.

    The tagline “Born from jets” differentiated Saab in a parking lot already filled with automobiles in pursuit of perfection, ultimate driving machines, and cars engineered like no other cars in the world. In a four-wheeled ecosystem with over 500 choices to choose from, any positioning born from a brand truth is a treasure to cling to. Sadly, finally achieving their unique differentiation was too little, too late for Saab. General Motors management had lost interest in their exotic imported lines, and was already making plans to shed itself of the whole lot.

    What originally signified Saabs on the street was their unique, black design. Saab styling continued to stand out on the street, until General Motors co-opted Saab design by mainstreaming it into the GM design catalog. The ignition system was quirky, too. The key was on the transmission deck, not altogether practical (beware the Starbucks that slopped in there) but unique. Like the rebirth of VW, Chrysler, Cooper Mini and others, the brand might have benefitted from having some renowned state-of-the-car designers (e.g. J. Mays) on its lot.

    Saab performance was and is exceptional. (Frankly, sitting in a Saab Turbo does achieve thrill status when pedal meets metal: the car is born from jets.) Although handling is not as tight as a BMW, the car has spirit. (Running footage was shot not on Mt. Tamalpais like most car manufacturers, but on the back highways of South Africa.) If this had been recognized and pushed 20 years ago, instead of quirkiness, the brand might have had a chance of surviving today.

    (There’s also an unsubstantiated rumor that, in Sweden, Saab stands for safety. Not Volvo. Rumor has it, Volvo envied Saab’s positioning enough to transport the concept to the U.S., flanking its home rival.)

    Although adjectives like quirky, eccentric, odd, do not mainstream make, it is the responsibility of every brand to understand not only who they are, but who they are not and never want to become. The brand could have expanded its appeal by seizing both what it is, with some insights into consumer desire. Crushing the two together is where the juice is.

    It is easy to stand back and whisper what might have been in hindsight. But it is also easy to forget that marketers not only have a responsibility for day-to-day sales, but to the longer perspective of how brands become (and remain) meaningful to their consumers. Identifying and incorporating brand legacy, brand values, brand assets, brand personality and a long-term vision for the brand—and keeping those elements current, relevant, and vital are the foundation of responsible brand management.

    What this really adds up to is that Saab was never a brand at all. Its marketers never seized hold of what the car was, why it existed, or what its brand assets or brand personality were. Its management created no vision, never really seized upon an overarching brand experience. And because the car held no real meaning for consumers, and no reason for being, it ceased to be.

    SAAB. 1947-2011. R.I.P.


  5. Traveling at the speed of life

    The Tofflers wrote in their book “Revolutionary Wealth” the following analogy:

    100 mph – businesses
    90 mph – civil society
    60 mph – the American family
    30 mph – labor unions frozen in amber, legacy organizations, methods and models left over from the 1930′s
    25 mph – slow government bureaucracies
    10 mph – American school system
    5 mph – Intergovernmental Organizations


  6. “Made In America” Makes A Comeback

    Head to any garage sale or swap meet in these recessionary times and you’ll notice people scrounging through old tools, metal work chairs, fans, factory dollies, kitchen appliances, and more. What are they doing? After decades of living in a throwaway society, they are searching for anything with MADE IN USA stamped on the bottom.

    There’s something solid and honest and real about holding a heavy cast iron wrench in your hand, a feeling unmatched by today’s counterpart–the wimpy IKEA Allen wrench. There’s something “authentic” about holding a hammer that hits square and true. And, let’s be real, a metal trash can that thrums like a metal drum when you toss something into it is the sound of freedom flashing.

    The honest to goodness quality of American industrial goods untainted by planned obsolescence cannot be understated.  There’s a reason people can still find tools, appliances, even bikes from the 1950s that still work. When we used to make stuff, we made it well.

    When things came along that were cheap (inexpensive)—first from Japan, then from China—it didn’t matter that they were also cheaply made. We simply threw them away and bought another one. Over time, this changed something in the American psyche, we became the “throwaway society”. Tupperware replaced metal and glass. And when we stopped making things ourselves, to let other people and countries make them for us, it took away something in the Yankee spirit that was linked to Yankee ingenuity, and a culture that was accustomed to doing things first (first mass produced cars, first on the moon, first telephone, first personal computers, et al.) and best and biggest.

    For the first time in years, consumers are looking back at the value of things that last. Whether this is due to creeping nostalgia, economic malaise, or trying to recoup something lost—or a combination of those things and more, is anyone’s guess.

    Or not.

    “There are two different movements. One of them is the Made in America. The other is an appreciation for older products. Not just antiques, but Vintage or Heritage,” says Jason Schott, chief operating officer at Schott NYC. At the turn of the century before last, Schott’s great-grandfather invented the motorcycle jacket. That black jacket Brando is wearing in “The Wild Ones”? That’s a Schott jacket.  So is Springsteen’s.

    “Throwaway fashion has been thrown away,” says Schott. “People would rather spend more money on a product that’s going to last them a long time.” Schott jackets are made from real horsehide. Touch the leather, and you can feel the utility in the garment. This is not some rebel fashion statement, this jacket is functional and made to save your hide. “The jacket design is based on flying jackets of the era,” explains Jason, a  fourth-generation Schott. “My great-grandfather’s innovation was to sew a zipper down the front.”

    What’s interesting to Schott is how Americana, which has always fascinated other countries, is finally taking hold here in the home country. “I was in Tokyo last week,” he says, “and it was really incredible. Japan is such a proper culture, but they’ve always idolized American bravado. We’re just starting to appreciate that in the U.S., whereas the rest of the world has always known.”

    “I think what’s happened is that during bad economic times people go for comfort. Comfort is things that have been around for a long time,” says Fred Rosen, executive vice president of Lucky Tiger shaving products. The Lucky Tiger mark was founded by a Kansas City barber named P.S. Harris in 1927. “When people see the old Lucky Tiger packaging they get a comfort level.” Although today the company is owned by At Last Naturals in New York, the company’s principles remain true to their legacy. The packaging for Lucky Tiger men’s grooming products is vintage 1930s. “When we bought the company in the 1990s, we bought it solely for its manufacturing equipment,” laughs Rosen. “The trademark and formulas came along with it. Then we took a look at what we acquired, and saw that the trademark and formulas were much more valuable than the equipment itself.”

    With lowered paychecks, higher gasoline prices and an uncertain economy, consumers want to attach themselves to something fine and clean and wonderful. There is something wondrous in first imagining something and then making it with your hands. The Wright Brothers first imagined a flying machine in their bicycle shop, and then tinkered with their idea until they got it to fly. The Steves–Jobs and Wozniak–imagined a computer for everyone and then created it bit by bit in their garage. This ability to tinker and to create is what experts say separates us, for example, from the Chinese. Despite a shoddy educational system that is the laughing stock of the world (today American students score 25th in math and 30th in science in global rankings) we are nevertheless able to figure things out. The Chinese are only able to imitate. “[We] Chinese are only able to copy things. The whole world knows that!” blurts a young Chinese woman during a consumer study in Shanghai.

    Imagining and producing what you imagine is part of our American dream.

    Perhaps we are snapping back to reality. Here and there, you find people who are actually making things again. Website etsy.com is filled to overflowing with products being produced in kitchens, family rooms, and second bedrooms across America. On the opposite side of the spectrum, American Apparel famously fashions its garments in downtown Los Angeles. There are Billykirk bags in Jersey City, Gitman Brothers shirts in Manhattan. Legendary companies like Pendleton blankets in Portland, Oregon. The Alden Shoe Company in Massachusetts. Heath Ceramics in Sausalito. According to their web site, Will Leather Goods in Eugene, Oregon are produced by craftspeople in Oregon, Colorado, Texas, California and New York, and “celebrate the pride and heritage that comes with the ‘Made in the U.S.A.’ mark.” This is and continues to be, they claim, an important part of their mission.

    And not all products are fusty iron-mongering. There’s also VPL in Manhattan, a neo-hip designer of smartly fashioned women’s undergarments. The VPL (stands for Visible Panty Line) concept is a more athletic, more interesting underpinning that can be translated to ready to wear, swim, and underwear that is made to be seen. The short version? To wear inner wear as outerwear.

    “Most of our clothes are made in the United States,” says VPL president Kikka Hanazawa. (Knits are harder to make and, so far, not priced competitively enough to be made in the United States.) “We actually pulled production from China to New York, because labor prices in China were increasingly not competitive. There is a shortage of labor. Chinese laborers are going home for a month, then not coming back because they want to work closer to home, or they want to work for Apple Computer who pays more.”

    There are other advantages, too. It’s a lot easier to manage design execution when your manufacturer is blocks away, and in the same time zone. And shorter lead times make creative decisions more timely in the trend-sensitive fashion world.

    And Hanazawa has something else on her mind. “I have consciously started approaching people who make things,” says the fashion company president. “North Carolina for soaps. Massachusetts for cold crème. More and more I see local production being favored.” In a world made up of LVMH, H&M, Burberry, L’Occitane, and now Uniqlo seemingly on every corner in the world, small shops specializing in unique goods become unique. “They need to keep their own identity,” asserts Hanazawa.

    “We have tried very hard not to be gobbled up by mass,” agrees Lucky Tiger’s Rosen. And it’s also about principle. “One of the things we pride ourselves on is that Lucky Tiger has always been manufactured in the U.S. And as far as we’re concerned, it always will be.”

    Perhaps Made in U.S.A. is just another passing fancy. A bump along the trendspotter’s trail. Or maybe this is the start of something big, all over again.

    No matter how it turns out, when you get tired of that wimpy IKEA hammer, try the hard pounding Estwing, manufactured in Rockford, Illinois since 1923.


  7. The coffee wars get recaffeinated.

    Just when you thought the world was divided between the opposing forces of Starbucks and Dunkin’ Donuts, new ventures have perked things up again in the coffee category. With the purpose of depositioning the blue mermaid.

    This year, for example, a man named Pete Licata was named best barista in the country at this year’s United States Barista Championship in Houston. Licata is not a Starbucks barista, but hails from the Honolulu Coffee Co. group in Hawaii. Licata then went on to international competition in Bogota, Colombia where he placed second (numero uno barista on the planet is an El Salvadorian named Alejandro Mendez).

    Today Starbucks finds itself being challenged and repositioned on every front.  And the notion that’s brewing is that there’s more to coffee today than just the mermaid.

    America’s (and the world’s) coffee palate has changed, evolved, and the new coffee culture finds itself sitting in cafes discussing the arcane attributes of Kenyan Peaberry, Brazilian Serra Negra, and Grand Cru. Restaurant menus respond to the new coffee connoisseurship by describing coffees the way others describe wines. Example: “…medium-bodied, smooth, with hints of cacao”. Some menus even mention coffee growers like Chuck Boerner in Kona. Artisan coffeeshops like Blue Bottle, Brooklyn Roasting Company, Dunn Brothers in Minneapolis, and Ninth Street Espresso in Chelsea Market present thicker, chewier lattes and more robust morning roast, focused on what they claim Starbucks started but did not finish.

    Mango wood and native Hawaiian koa adorn this Honolulu Coffee Co. site, adding a whole new experience for premium coffee drinkers.

    Ed Schultz, founder of Honolulu Coffee Co. (where barista Pete Licata brews his best), puts it this way. “A company with 13,000 stores [like Starbucks] cannot see themselves as a boutique brand. There are people who want a pure coffee experience, rather than being in [Starbucks’] ‘third place’.” Rather than spewing out cups of grande egg nog lattes from super automatic espresso machines, Schultz and others pay attention to the coffee, from seed to cup.

    “There’s a quite large percentage of people who are quite happy with going to Starbucks and don’t want what we do at all,” says Blue Bottle Coffee’s James Freeman. “Shops like ours are a little less customer focused. We only have six drinks, we don’t have sizes or flavors. We have less people, less stuff, smaller drinks.”

    While Starbucks has captured the comfy social experience of the European café, others are championing the taste experience. While this may have been what Starbucks had going in its early days, it is where people like Honolulu’s Ed Schultz suggest they are failing today. “You cannot be that big and pretend to put out artisan coffee,” says Schultz. “Inside European cafes, you find one person creating the coffee, using a very manual method.”

    “We have more manual preparation,” agrees Blue Bottle’s Freeman. “Fewer push button operations. Fewer words. We spend more time making each drink.”

    It seems that as Starbucks educated us on what coffee could taste like, they also created coffee aspirations. Just as we traded up from bottles of Mateus and Liebfraumilch to Napa Valley wines years ago, so, too, we aspire to better things in coffee today.

    And while this depositioning might relegate Starbucks solely to the experience level, the company is having pressures on that front, too.

    In addition to the thousands of local coffee shops that now flaunt leather chairs and faux library settings, there is Nespresso. Owned by Nestle, Nespresso’s ornately designed boutiques and $400 Nespresso machines make it the Louis Vuitton of coffee experiences. Not to mush metaphors, but the stores look like they might have been created by Porsche Design.

    Positioning themselves as the worldwide pioneer and market leader in highest-quality premium portioned coffee, Nespresso’s ultimate coffee experiences are not only savoured at home, but also at upscale restaurants, hotels, luxury outlets and at offices. Nespresso has artfully provided a stylish alternative to the omnipresent Uggness of Starbucks. And sales prove it. The brand touts “an organic growth rate of over twenty percent during the first nine months of 2010” in a recent news release.

    Twenty or so years ago, New Yorkers found themselves walking down the avenues wondering what was up with all the near-empty Chock Full O’Nuts shops located on Manhattan streets. Popular in the 1940s, by the 1980s the retail fronts were no longer relevant. Starbucks arrived to rekindle our coffee palate. But if the mermaid wants to survive, it needs to ignore Dunkin’ Donuts as their major competitor, and focus on the quality coffee and store experiences that made them special.

    One coffee consumer in a recent research study outlined the cadence of public popularity, “You start out being new and different and special,” she declared. “Then you become popular and mainstream. Next, you become ordinary and boring.” Bam.

    If you think the rebirthing of artisan coffee is small beans, you just don’t now what’s brewing. Honolulu Coffee Co. is opening a new shop in Taipei. Blue Bottle Coffee is launching new shops in Rockefeller Center and Manhattan’s Chelsea neighborhood. Tokyo may even be a possibility. “I love Japan!” says Freeman. “The coffee culture there is very inspiring to me.” And Nestle now has TV ads touting its sleek round new Dolce Gusto machines in China, to the tune of James Brown’s tune “Sex Machine”.

    Sex. Coffee. Two things we can’t seem to live without.


  8. 8 Master storylines for business storytellers.

    Jonathan Littman, co-author of the international bestsellers The Art of Innovation, and Ten Faces of Innovation, and I were discussing storytelling recently when we realized that there are dozens of books that explain how to write books, movies, websites and other narratives. And plenty of books and articles on storytelling. But it’s really hard to find successful plots for business narrative necessary for strategic public relations, crisis management, Internet strategy, advertising, treks through the social media landscape, and other business communications functions. Here’s the CliffsNotes version of developing a narrative around your business strategy. PART 1

    Plot #1: Your Lucky Stars

    STORY INGREDIENTS: Rising company, stellar talent.

    We begin with one of the most desired plots of all: the rise of talented men and women enjoying the rocket ride to stardom. We’ve all seen this before—the cluster of business partners smiling into camera, accompanied by the tacit burst of applause. The brilliantly innovative individual staring into camera with a determined stare.

    The storyline starts with the creation of an idea, supported by 80-hour workweeks and generous portions of luck, timing, and bad pizza. Make sure there is conflict: a big bad corporate competitor, a dull former corporate job with knobbyhead employers. And then the rise to grace, thanks to an angel investor, shelf space at Walmart, or world charm.

    Examples abound in software, advertising, design and biotech companies. They even include DreamWorks, the dream film company created by Steven Spielberg, Jeffrey Katzenberg, and David Geffen.

    The challenge of this high-wire act is that for most companies, it is probably less plotline and more tactical. The storyline and the Lucky Stars themselves must continue moving in a gracefully upward arc. The irony, of course, is your audience is waiting for their inglorious fall from grace (also followed by a burst of applause). Only an able—and incredibly lucky—few are able to keep the suspense growing and reboot themselves with enough frequency to ride this rocket of success.

    Think Richard Branson. Think Oprah.

    Plot #2: Return of the hero.

    STORY INGREDIENTS: Formerly incredible company experiences declining sales, market share, and questionable management. Original entrepreneur returns, reclaims the company and moves toward even greater success.

    Entrepreneurial passion is born, not bred. Successful companies find it difficult to sustain themselves following the loss of their entrepreneurial leader, and managers slip into the driver’s seat. Sometimes, the original leader is called back to the helm. Examples: Steve Jobs’ legendary return to Apple. Howard Schulz’s equally passionate return to Starbucks. Martha Stewart’s recent return to her own Board of Directors. Companies like GE, IBM, HP and even companies without initials have suffered ups and downs when their charismatic founder(s) left the helm (Thomas Edison, Tom Watson, Messrs Hewlett and Packard, respectively). For the Return of the hero to be successful, of course, requires a sometimes violent course correction (Steve Jobs has been quoted as saying that upon his return to Apple one-third of the people knew what he was about and stayed on, one third were let go, and the other third left of their own accord). But given the successes of Jobs and Schultz, good things come to those who return.

    Plot #3: The “Doing the right thing” thing.

    STORY INGREDIENTS: Conscious capitalism wins out.

    When husband-wife actors Paul Newman and Joanne Woodward started their Newman’s Own food products company and donated all their proceeds to Save The Children over 20 years ago, it was unprecedented. Today, the notion of giving a portion of your company’s proceeds to nonprofits is almost a given. Buy a pair of TOMs shoes and the company gives a second pair to a needy someone in the Third World. Homeboy Industries helps ex-convicts rehabilitate themselves. Bono’s [RED] campaign aids Africa. Target stores donate millions of a dollars each week to help support education (and have been doing it for decades). Doing good, whether the story surrounds green sustainability, giving to Haiti, the homeless, or to the worthy organizations around the world, has gone from fringe politics to an increasingly can do effort. Why? That’s another story. But, as many advise, it’s no longer simply a sidebar story, but must be integrated into the company’s overall values. For more information, try out the Conscious Capitalism Conference in Austin, Texas being held October 9-11.

    Plot #4: Flipping bad news. Or, Making lemonade.

    STORY INGREDIENTS: Turning negative into positive, or The Midas Touch

    One of the greatest spins in history is when advertising agency Chiat-Day (today known as TBWA Chiat-Day) was doing poorly at its New York City office. As a result, the agency was forced to downsize their Manhattan office space. Never one to est crow, founder Jay Chiat was able to turn lemons into lemonade by declaring the smaller office (where people were now relegated to lockers and work areas rather than expensive cubes and desks) as the new way to office. Hanging his hat on the mantle of creative extremism, Chiat used gobs of poetic license to claim the space reduction was actually a step toward the future officeworking psyche. (Of course, survivors of that era claim cramped quarters and abandoning the office altogether in favor of the local coffee shop.)

    Plot #5: Passionate zealotry.

    STORY INGREDIENT: Actually love what you do.

    Now, here’s a concept: actually love what you do. All over the world, people follow their passion and find themselves steeped in success. This is not new. Thomas Edison was driven by the need to invent and we’re all the better for it. Danny Meier is passionate about his restaurants. Gary Vaynerchuk is passionate about wine. Jim Koch of Sam Adams beer is passionate about his brew. Passion is the finest form of selling, and creates a terrific narrative.

    And who knew there could be so many kinds of passion?

    Whether it’s passion for customer service like Southwest Airlines and Zappo’s, or passion for quality like Louis Vuitton or Ferragamo, or passion for incredible design like Santiago Calatrava or Jonathan Adler, this story pushes the boundaries of ordinary zeal. You get the feeling that Sir Jim Dyson actually cares about creating a new vacuum machine. It’s about excess and wonder and joy. And the great, crazy thing about this narrative is that the outcome must be more and more new, wonderful, amazing things to be passionate about. This is the kind of narrative that moves people from Who cares? to I care! Care about what you do and others will care about you, too.

    Plot #6: Superior Being.

    STORY INGREDIENTS: Company with seemingly omniscient powers pervades the Earthly realm with supernatural powers.  Extraterrestrial powers are an advantage.

    This is not an easy storyline to pull off. Superior (or supreme) beings are hard to come by. IBM has been able to successfully tell the tale via their Deep Blue chess matches and server bench strength. Their superhuman servers have defeated chess champions like Gary Kasparov from 1996 on, with eerie effectiveness. They are fond of pitting their artificial intelligence against pitiful humans and coming out on top.

    But Google has been able to work this form to death (perhaps even virtually creating it) thanks to their seemingly omniscient powers—from Google maps to GPS data that knows where we are at all times (or, as least they know where our smart phone is). Twitter consciousness is also approaching Superior Being status, with its ability to leap socio-political borders, stir uprisings, and becoming a communications feed for social media masses. Tweet is the new text. And Facebook’s hyperconnected backroom that logs our interactivity helps them come close to deified omniscience.

    These narratives follow the suspense story arc, and are dependent upon an endless stream of OMG innovation—a continuing reveal of larger than life powers, as we gawk in awe, powerless and wondering, What happens next?

    Plot #7: Us vs. Them

    STORY INGREDIENTS: Two pitched rivals slug it out in public, to the merriment of all.

    Coke versus Pepsi. Mac versus PC. Maxwell House versus Folgers. Halo versus Call Of Duty. It’s fun to pick sides. The terrific thing about this narrative is that it’s a high-energy slugfest that keeps everyone focused on the two players, even when the category may be filled with rivals (Coke and Pepsi are hardly the only soft drinks in town, right?). This narrative also helps you figure out who you are, and who or what you never want to become. The positioning lines are clearly drawn (and therefore must be clearly defined) and the conflict is inherent in the plotline. What’s left is the continuing saga as the public engages in its own You versus Me rivalry. Not for the faint of heart, this storyline requires erstwhile competitors able to go for the long haul. The best thing may be that no one ever really wins or loses. They just keep going.

    McCann Erickson took a similar approach recently when it squeezed its lemons to claim that, rather than due to business losses, their laying off hundreds of people was necessary to pay its incredibly talented (and apparently highly paid) new hires.

    Plot #8: I’m so bad, I made it good.

    STORY INGREDIENT: Dominant personality able to spin repeated successes.

    How people succeed once is a story by itself. How they lost it all is the foundation of tragedy. So the rags to riches to rags and back to riches narrative is endlessly fascinating, and the stuff of “Made for T.V.” movies. Examples? Former heavyweight champion George Foreman has made more money selling his eponymously branded barbecue grilles than he ever did as a professional boxer. Madonna has been the poster child for repeated success as she has spun from Material Girl to Lust Goddess to Eva Peron to Motherhood. And no matter what you may think of former President Jimmy Carter and former Vice President Al Gore’s politics, they have been able to rise to greater fame as humanitarians and globe watchers.

    This is by no means the end to plot outlines. Possible others include Egregious Greed, Revenge, Against All Odds, Deliverance From Evil, and more.

    But no matter which plot you find yourself leaning toward, the storylines must introduce choices, put the characters in difficult positions and allow them to make believable choices that direct the story’s outcome. These points concern the technical structure of a story. Use them as a skeleton and add life by using emotion, rich characterization and fascinating settings. Use minor and major climaxes, building to the final major climax and revelation that leaves the main character changed in the end. Storytelling is a craft that has existed as long as humankind. Some people verbalize their stories while others write them down. The most successful ones are those that know how to capture their audience’s attention.


  9. The United States of Shopping Makes Peace Not War

    It is an August night in Times Square. The air is not the steamy sullen soup it was just a few days ago. The weather has cooled, the humidity near gone. Tourists crane their necks to gawk at the LED videotrons that rim Times Square bright as daylight. Adding to the mutter of trucks and taxi cabs is a mashup of strange tongues from Brazil, France, Germany, Serbia, Ecuador, Britain, and Atlanta.

    Everywhere you look, people carry shopping bags by the fistfuls. They gobble up Levi’s, American Eagle, GAP, and other totems of American culture because they mean something: freedom, independence, disposable income, empowerment, capitalism, consumerism, and more.

    This reminds us that not only is the world decidedly flat, but the influence of American culture spreads like water. Our ideals are without boundaries. Nothing expresses independence, freedom and equality more than the ability to buy what you want, where you want, when you want it. American culture is available to all, to be embraced, enjoined, enjoyed, and spilled into the world mix: hence the cultural irony of people wearing Hollister t-shirts during the Spring revolution in Egypt, or otherwise naked kids in Amazonia sporting Nikes.

    Although isolated by two large oceans, American culture is a global community. The Japanese collect Fender guitars, Brazilians chow McDonald’s, Chinese grin as they nibble KFC. We do not just propel profits, we propel culture. But the strength of any culture, to rewrite James P. Carse, is its ability to find visions that promote still more vision.

    For pan-Americana, the meaning of value is a double-sided ideal, as political as it is economic. It helps shape a community with shared beliefs: a culture. Cultures are not geographies with borders, they are geometries that flex and expand with enough suck to absorb whatever rubs against them. While borders can be broken, cultures seep forward. This is the lasting power of American hegemony: a culture that stretches beyond dollar devaluation, trillionated debt, and footsore armies. Here in Times Square, the Others are gobbling up the totems of those things that represent our freedoms, our independence and American spirit of individuality. Fashion. Electronics. Music.

    These Times Square visitors from Ukraine, Slovenia, Ecuador, Brazil, China, have been democratized, in part, by our icons of consumerism. Watches, purses, shoes, shirts, cell phones, blue jeans, etcetera. Not only are they familiar with the American context, they consume and expand it. They buy it, they carry it back home with them. That’s not just a t-shirt, it’s a flag.

    A few blocks away, a pod of young people from Eastern Europe cluster shoulder to shoulder in a hotel lounge, checking off shopping lists. Together, they buy jeans, iPads, smartphones, Barbie® dolls, and other consumables that represent what they imagine we are. They pack them into suitcases, then ship them back to the mother country. Their black market profits are enough to let them remain in the United States. In a sense, they embody the ultimate American Experience: they live to shop.

    It is the same all over the world. In China, American visitors giving a marketing workshop describe American values. Foundational American ideals, they declare, are “freedom” and “democracy”. The Chinese shake their heads and retort, “capitalism” and “consumerist economy”.

    We must be wary of jingoistic notions of America’s global influence. Yet, as we try to influence with surveillance satellites and remotely controlled robotics, perhaps our stealth bombs are not really guns and steel, but the pyrotechnics of rock anthems, soft drinks, fried chicken, running shoes and Twitter. Can owning a smartphone be as transformational as a voting booth? As revolutions sprout in Egypt, Libya, Tunisia, as the jobless riot in Britain, France, and Spain, as people transcend national identities to get their global fix, we must remind ourselves of the possibilities of the possible. Shopping bags are concentrations of meaning that declare our ideals of freedom, equality, and independence: shopping for all. Today they buy our t-shirts, tomorrow they change their world.


  10. Karl Lagerfeld Book Wall

    I once stood by Karl Lagerfeld atRizzoli on 57th Street and watched him buy a huge stack of books. Now I know why.

    I once stood by Karl Lagerfeld at Rizzoli on 57th Street and watched him buy a huge stack of books. Now I know why.


  11. Brand Passion Beats Brand “Liking”

    People look at Facebook “likes” today much the same way we used to look at the McDonald’s highway sign that once declared “Over 20 million sold”. Today, in a similar way, social media numbers appear to be both a popularity contest and approval score.

    But it’s time to do some basic accounting. Dissect the over 20 million people “liking” your site (if you’re as popular as Starbucks), and you might find that less than 10% of them are spending anything more than a few seconds in your backyard.

    While millions seem to be “liking” you, it’s not love. In fact, the vast majority are usually just casual acquaintances, clicking through on their way to a more serious relationship. (Sure, just like the old 20/80 rule: twenty percent of your customers provide the majority of your business. But that’s not the news here.)

    The wonderful news is that the 10 percent who linger on your site are staying for three minutes or more (that’s eons in Internet time). Calculating the numbers from the 20 million mark, that’s approximately 2 million who are hanging out, getting to know you, and starting to really care about your brand.

    Know who these people are? They’re your brand zealots. Your advocates. The people with the buzz muscle to help turn potential zealots on to your brand.

    Your new objective? Think of your brand as a network. Use as many social media tools as budgets allow: Facebook, Twitter, Tumblr, YouTube, and apps, to develop a brand narrative that moves social citizens to your site.

    Be exciting. Be interesting. Be entertaining. Match crazy YouTube videos with wild postings and events and other ‘traditional’ paid media that move social citizens from their backyard to your backyard: your (paid) site. Find ways to engage and re-engage zealots every time they come to you. (But please, no more coupons.)

    Example. Best Buy Mobile created a mobile app called “Excuse Clock” that sets the time forward if you’re stuck in a boring meeting. (“Oh! Look at the time! Gotta run!”) Perfect for today’s young mobile-savvy audience.

    Starbucks just introduced a gifting app that lets you sit in Manhattan and buy friends in L.A. an iced grande skim latte. Nicely tuned to the trends of random giving and mobile networking

    Nike+ offers up not just gear, but running routes posted by social citizens in their local community, music to run to, and more.

    Help zealots advocate you and your brand values. Smart companies today understand that there is no dividing line between traditional and social media. They are all vehicles for distributing meaningful content that needs to be mashed, focused, and driven by a strategic brand narrative. Importantly, these are opportunities to create, rather than simply react, Mix up new media with traditional media by using digital outdoor boards where people can read tweets and Facebook posts in real time. Conan O’Brien posted real-time tweets on digital outdoor boards with real-time success. Miller Brewing has done the same.  Domino’s new TV spots flash supposed posts in Times Square.

    Once you get your zealots excited and talking, social network theory and the subsequent effects of contagion suggest that they can in turn influence as many as 100 other social citizens.

    Now do the math again. Ten percent of your 20 million “likes” equals 2 million brand zealots. If they influence just 10 potential zealots, suddenly you’re back up to 20 million. But these people aren’t just clicking through. Now they’re your zealots, your brand lovers.

    And we love that.