It’s Not Selling Out, It’s Ca$hing In

Hip hop is far from the first culture to be infiltrated and subsequently mined for profit by corporations, but the trends, rhythms, fashions, and lifestyle of hip hop has global effect, from suburbanites in the Valley to hustlers in Brooklyn to cab drivers in Africa.

With a global audience, it was only a matter of time before corporations reached out to hip hop to validate their image.  To this end, corporate America has met with unparalleled success, securing rap godfather KRS-ONE and all-around mogul Jay-Z as two of their biggest spokesmen:

KRS-ONE Interview: Rap Merges with Major Brands

Jay-Z Co-Brand Director of Budweiser Select

As more hip-hop celebrities become spokespeople for brands, we see a dovetail with earlier trends (reference “Remix!”) and the artists’ answer to recording studios’ new 360 degree contracts.  As individual album sales may drop due to open source technologies, artists both become and represent brands.

Artists can certainly profit in this manner, but is this trend (a) good for the culture the artists propagate and/or (b) a risky attempt to trade on “street cred” for major companies?

Perhaps some other dons of hip hop, the Wu-Tang Clan, have the answer embedded in the lyrics to their banger “Protect Ya Neck”:

First of all, who’s your A&R
A mountain climber who plays an electric guitar?
But he don’t know the meaning of dope
When he’s lookin for a suit and tie rap
that’s cleaner than a bar of soap
And I’m the dirtiest thing in sight…

REFLECTIONS

1. When worlds collide (e.g. hip hop culture and corporate America) in pursuit of a common goal (profit), at what point is the relationship between credibility and profit no longer linear and exponential?

2. How can businesses draw on the talents and experiences of artists to profit in a respectful and reciprocal manner?

ACTION

Keep it Real.

Remix!

This blog’s first post, “The Honor System,” profiled the artist Radiohead as an innovative example of musicians bypassing big labels and putting their trust (and profits) directly in the hands of consumers Radiohead Bypasses Labels.

Faced with an exodus of top talent, big labels have had their existence challenged Fast Company: Can Big Labels Survive? (see esp. post by Karen McGrane, echoed on MusicNews.com R.I.P. CD?).

Warner, Sony BMG, and Universal have all heeded the advice of McGrane and are working hard to adapt and invent, using Web 2.0 to their advantage (see post entitled “Web 2.0, SoJo, and Horatio Alger”) and striking a landmark deal with MySpace Business Week: Record Labels and MySpace Cut a Deal.

Big labels have also introduced the “360 degree contract,” which is all-encompassing (merchandise, tours, etc.) as opposed to merely CD sales The Economist: A Change of Tune: 360 Degree Contracts.

What ultimately happens to big labels remains to be seen. Yet recent events evidence that several labels are trying, in open-minded and innovative ways, to adapt and ensure their survival. As of now, a Barenaked Ladies chorus is the final arbiter for the industry: “And it’ll be great, just wait–or is it too little, too late?”

REFLECTIONS:

1. Consider the effects of competition among big businesses as they attempt to stay relevant to the consumer (e.g. Apple/iTunes, record labels, musicians). Does this competition help or hurt the consumer?

2. Does this kind of “consumer based competition” encourage or discourage innovation? What, in turn, does this do for everyone involved (artists, labels, consumers, etc.)?

3. What would be the effects of consumer based competition (as opposed to relative price fixing) in other industries (e.g banking, credit cards, etc.)?

ACTION

Focus on and trust your consumer base to drive innovation and a competitive advantage.

Liquid Ambition

With 97% of the world’s water undrinkable ocean and 3rd world nations (especially in Asia and Africa) suffering from a lack of potable water, access to clean water is an oft-overlooked problem Ripple Effects (see esp. 2nd to last paragraph). As one of the UN’s Millenium Development Goals, the UN aims to “reduce by half the amount of people without sustainable access to safe drinking water” Goal #7: Ensure Environmental Sustainability.

Led by Danish company Vestergaard Frandsen and their revolutionary LifeStraw, check out the following examples of innovators addressing global concerns in addition to bottom lines:

LifeStraw

Dalberg

Healing Waters International

MetaVu, Inc.: Return on Environment (RoE)

Solar Water Purifier (click on “Solar Water Purifier” under Further Info.)

REFLECTIONS:

1. Is it possible for market based capitalism to drive profit via the solution of existing needs rather than manufactured wants? Which strategy is more profitable in the long term?

2. As the world becomes “flatter” and globalization demands not just awareness, but participation in addressing global crises, what role can your company play within its niche?

ACTION:

Donate some time, money, or your particular talents to an organization/project of global concern, even if acting on a local level.

Trimming the Fat

According to the 2007 white paper “Ten Trends” Ten Trends: #9 Leadership for Longevity by the Center for Creative Leadership in Colorado Springs, CO, regular exercisers not only scored more favorably in peer evaluations than non-exercisers, but also outperformed non-exercisers in leadership categories (e.g. organization, authenticity, etc.).

CCL’s study adds to the onslaught of recent health-related research, highlighted by John J. Ratey, MD’s book “Spark” Spark: The Revolutionary New Science of Exercise and the Brain, a scholarly argument for mind-body dualism that would make Rousseau proud.

Several pioneering companies, to include Google, Caterpillar, Microsoft, and Yamaha Corp. of America have taken the hint, reducing the amount of available junk food and bringing in leaner options.

For an excellent overview, see the article “Hide the Doritos! Here Comes HR” in April 2008’s Business Week:Hide the Doritos! Here Comes HR

REFLECTIONS:

1. Are you what you eat? Could simple changes in diet and sleep habits increase productivity at work?

2. Try to understand the motivators behind why you may reach for junk food. Do you truly enjoy the taste, or is it simply a packaged, easily accessible, more convenient option?

ACTION:

Make 3 healthy weekday lunches each Sunday afternoon or evening (to eliminate excuses about not having time the night prior or morning of) and limit yourself to dining out 1-2 times per week.

Consider the aphorism “What goes in comes out,” both in terms of appearance and productivity.

Everyone’s Got a Story to Tell

In Status Stories trendwatching.com posits that there is a shift away from traditional brand/storytelling marketing, in which a large company sends an overarching message to mass audiences, to “Status Stories,” in which companies help individual consumers tell their stories to each other, playing to the ego and need for uniqueness in a world of 6 billion people.

For examples, check out the following links:

Army \”Paths of Strength\”

AmEx: My Life. My Card.

Thirsty-Fish: What\’s Your Story?

McKinsey: Our People

REFLECTIONS

1. In a frenetic age of soundbites, “elevator pitches,” and drive through Starbucks, will consumers invest time to listen to the stories they are told? How will your company (a) attract attention (b) hold attention/generate interest (c) translate interest into action?

2. With everyone talking, can a competitive edge be gained by quietly listening?

ACTIONS

Invest in your consumers and shareholders (and therefore in your company) by listening to their stories.

Listen to the narrated–but unspoken–story within a story to gain competitive advantage.

Web 2.0, SoJo, and Horatio Alger

One need not look far to see the growing impact of Web 2.0 Web 2.0 Spending Boom and social networking sites such as Facebook, MySpace, and the like. Already, these sites have become powerful mediums of self-expression, self-promotion, employer screening, and a host of other things. The Web presents seemingly unlimited opportunity for visionaries and trend-setters, where the skillful use of MySpace and blogs can turn even the likes of Tila Tequila A Shot at Love into a modern day Horatio Alger story. Of sorts.

To see several pioneering individuals and companies who are successfully molding Web 2.0 into mediums that change the way we receive, store, transmit, and process information, visit the following sites:

SoJo Pioneer (view “Meet Kevin Sites” tab for specific information on project scope)

Photobucket: (Re)weaving the Web

PodTech.net: Web 2.0 + Brand Storytelling

REFLECTIONS:

1. How can your business use the power of Web 2.0 to excel? Online blogs to promote an “inside look” at the organization? Resume submissions via YouTube?

2. What qualities will distinguish the “one-hit wonders” of Web 2.0 from companies that build a solid foundation/niche and stand the test of time?

3. How can your business break down the massive amounts of information (much of it irrelevant, incorrect, or potentially harmful) on the Web to find, process, and apply the gems that can revolutionize your field?

ACTION:

Brainstorm ways your company can use Web 2.0 technologies to advance its interests.

The 80/20 Rule: Nature vs. Nurture?

Most of us have heard of the “80/20 Rule,” or Pareto Principle, which can be applied to almost any activity Using the 80/20 Rule to Simplify Life. As applied to workforce productivity, a central concern of leaders worldwide, the rule may be stated as follows: “20% of your employees will perform 80% of the work.”

This assertion begs the question: What is preventing the overwhelming majority of workers from performing at capability?

This question in turn provokes a variation of the infamous “Nature vs. Nurture” debate. Are 80% of workers inherently lazy and unproductive? There are certainly many days (Mondays, anyone?) when this pessimistic statement rings all too true. Taking a slightly more optimistic view of humanity, however, perhaps some employees have been temporarily “derailed” due to a variety of circumstances (micromanaging by superiors, personal concerns, etc.).

Take the example of a middle school student who is performing poorly in school. Frustrated, the teacher moves him to the back of the class. The student’s performance deteriorates further, and he enters a downward spiral. Perhaps the student is a troublemaker. Perhaps he is lazy. Perhaps he has a learning disorder. But what if I told you all the student needed to start with was a pair of glasses because his eyesight was poor?

This situation is analogous to what often happens in the workforce. Often, when an employee fails to “make the numbers,” an otherwise talented asset finds him/herself strangled by micromanaging, stressed by poor reviews and warnings from higher up, etc. and performs worse as a result.

The 80/20 rule as applied to leadership actually operates in reverse. A true leader is akin to a gardener, with his team/organization as the plant. 80% of the plant is good, and 20% may need to be trimmed from time to time. Instead of hacking apart the plant if it doesn’t grow, the effective leader is better off giving the plant a little more water and sunlight, relaxing, and letting the plant follow its natural inclination–to grow and flourish.

REFLECTIONS:

1. Does the 80/20 rule ring true in your office? If so, how are the 80% treated? Are the results you achieve in keeping with the way the majority (80%) of your team is treated? (Hint: if you feel your company is underperforming, the answer string is likely: Yes, Poor, Yes. Coincidence?)

2. Do you prefer to prune or nurture? Why? Which approach do you think will achieve greater long-term success?

3. When is it appropriate to “prune”?

ACTION: Focus on “creating space” for your team to achieve. New Generation Leadership

The Honor System

According to the 2007 white paper “What’s Next?” published by the Center for Creative Leadership (CCL) in Colorado Springs, CO, only 8% of responding professionals believed “Ethical Decision Making” was an essential leadership skill of the future. And yet, several visionaries, from Radiohead to restaurant entrepreneurs, are making headlines by betting on personal ethics, creating systems in which consumers determine the value of the good or service purchased.

For specific examples, check out the following websites:

Radiohead Bypasses Labels/Piracy, Trusts Consumers

One World Everybody Eats

Terra Bite Lounge

Is such a social experiment profitable? To see the results of one such endeavor, read the following excerpt from the 2005 book Freakonomics, profiled in the New York Times: Bagel Man\’s Honor System

REFLECTIONS:

1. Are such seemingly extreme examples utopian and easily dismissible? Allow yourself to imagine a world that operated on the Honor System. What would it look like? What would be your role? The role of your company?

2. At their core, all human interactions–business, social, or personal–revolve around relationships. As social creatures, human beings form friendships, select partners, and do businesses with individuals whom we trust. What is your business doing to inspire trust in its consumer base? What more can you do?

3. Do most businesses treat customers as cohorts or culprits? What effect does this have on consumer psyche? On profit margins? How does your business treat customers?

ACTION: Consider the reciprocal implications of businesses actively demonstrating trust in their consumer base.