iPlot

A Hackathon to “Reinvent Business”

Can social technology enable companies and the people within them to make better decisions? Can it improve corporate behavior? Can it perhaps even help restore the social contract between business and society? These are just some of the questions to be tackled by the “Reinvent Business” hackathon – a collaborative, rapid ideation and programming workshop – to be held in San Francisco on June 9-10, Hosted by frog and LRN, in partnership with BSR, Carnegie Mellon University, Dachis Group, Net Impact, Silicon Valley Bank, Fast Company, and the World Economic Forum, the two-day event will bring together software developers, designers, gamers, film makers, writers, business leaders, and other creative minds to imagine, design, and build a more human and truly social enterprise. The goal is both simple and bold: to develop concepts and prototypes for innovative products and services that have the capacity to transform business from within.

The World Economic Forum formed a Global Agenda Council on Values in Decision-Making (of which I am a member) in response to the current economic crisis to realign our collective mindset and develop practical approaches for a more moral economy. It has developed an ambitious agenda to help organizations translate human values into practices and behaviors that strengthen our institutions and positively impact the state of the world. New challenges call for new approaches, and we hope that with this hackathon as the starting point, we can engage the tech and creative communities in an ongoing constructive dialogue on how technology, and especially social technology, can change corporate behavior.

This need for behavior change, for “reinventing business,” is an urgent one, considering the growing number of voices that observe a crisis of capitalism and demand its fundamental transformation. In an op-ed piece for the Huffington Post, “The End of Capitalism – What Comes Next?,” World Economic Forum Founder and Executive Chairman Klaus Schwab draws a clear line between the original, defensible idea of the free market economy and the worrisome decoupling of the financial system and value-creation that makes an overhaul of its technical aspects mandatory. But he also argues that simply correcting excesses is not enough – we need a more radical reset. Schwab reminds us of the Stakeholder Principle he introduced in 1971, which is now more relevant than ever, propelled by the rise of social technologies: “In an age when social networks are enabling greater participation and transparency, companies will only be able to achieve economic success if they can generate long-term benefits not just for their shareholders, but also for the common good.”

While most companies will subscribe to that point of view rhetorically, the disconnection between business and society (and, as studies show, between management and employees) is indisputable. From Occupy Wall Street to public resignation letters in the New York Times, the widening ‘trust gap’ between business and society can’t be ignored. In a recent column, The Economist contends that companies should worry less about their reputations and more about how they do business. And indeed, increasingly, consumers and citizens demand that companies match their words to their actions, far beyond just Mission Statements, Codes of Conduct, and Corporate Social Responsibility (CSR) programs. For today’s consumers and citizens, integrity means that a firm’s decisions and behaviors are fundamentally and consistently aligned with its values and principles as well as those of its stakeholders (which include society at large).

Yet the crisis of capitalism is not only a crisis of integrity, it is also one of meaning. “It is the job of companies to produce meaning,” writes management philosopher John Hagel, and with a growing number of consumers and employees expressing a strong desire for purpose beyond profits, and even the Harvard Business Review espousing happiness as a new economic paradigm, this appears to be a ripe time for reinvention. As the world becomes more interconnected and interdependent, the lines between the corporate and the social, the professional and the personal blur, and the younger generation of netizens in particular expects heightened levels of transparency, responsibility, and inspiration – both as consumers and employees. Being “In Search of Excellence” therefore no longer suffices; companies and their leaders now need to pursue significance.

Achieving this vision requires changes in two key dimensions of our economy: what we consider to be “value” and the values that guide how we create it. We need a more inclusive value definition that is respectful of all stakeholders’ needs, fully aligned with human values, and transcending the merely transactional; and we need inclusive models of value-creation that are inherently social.

At the national level, Bhutan’s Gross Happiness Index, as an alternative to the Gross Domestic Product (GDP), has gained many admirers, and both the French and the UK governments have begun to emulate it. Moreover, there are supra-national organizations and NGOs such as the New Economics Foundation in the UK that have long proposed new indicators of economic progress grounded in the belief that we need a more holistic, integrated understanding of the economy instead of one that is purely based on financial terms.

At the corporate level, social media and networks have disrupted traditional paradigms of productivity and organizational behavior, and enabled participatory models of value creation that fully harness human potential by leveraging social technologies to maximize social capital (e.g. enterprise social networks, crowdsourcing). Consequently, the social enterprise of the 21st century recognizes social capital – in other words: talent, inside and outside of the organization – as its key asset. In his article, Klaus Schwab describes this as a significant paradigm shift:

“Capital is being superseded by creativity and the ability to innovate – and therefore by human talents – as the most important factors of production. If talent is becoming the decisive competitive factor, we can be confident in stating that capitalism is being replaced by ‘talentism.’ Just as capital replaced manual trades during the process of industrialization, capital is now giving way to human talent. I am convinced that this process of transformation will also lead to new approaches within the field of economics. It is indisputable that an ideology founded on personal freedom and social responsibility gives both individuals and the economy the greatest possible scope to develop.”

With the rise of “talentism,” the need for a real understanding of the common human values that connect organizations and individuals is becoming ever more important. Transparency, inclusivity, individual empowerment, and organizational responsiveness are crucial in nurturing businesses’ social fabric and facilitating empathy and collaboration. Yet, the challenge remains: How do we translate these values into day-to-day corporate behavior and into tangible, personal experiences? How can companies become open organizations that harness and build social capital both inside and outside of their institutional boundaries?

This is where our “Reinvent Business” hackathon comes in. Whether it is a mobile app that uses real-time peer feedback from social networks to help address ethical dilemmas, or a tracker that captures and measures alternative types of value, or a data visualization tool that illustrates the unintended consequences and the externalities of decisions, or an ‘empathy app’ that lets you see the world through someone else’s eyes, we hope for concepts that radically rethink the current business frameworks while at the same time offering practical solutions to business leaders and employees.

To be clear: We don’t expect this hackathon to produce any silver bullets, nor do we aim to “productize away” the deep and complex challenges of a moral economy and a more human enterprise. But we are poised to spawn a conversation by tackling concrete problem spaces that might inspire further-reaching, broader solutions.

Learn more about the "Reinvent Business" hackathon: http://www.reinventbusinesshackathon.com/overview.html

To participate in the "Reinvent Business" hackathon, apply here: http://www.reinventbusinesshackathon.com/apply.html

Humanity in the Code

My South by Southwest Interactive (SXSWi) experience began on the “nerdbird” – the flight from San Francisco to Austin. At high altitude and in even higher amplitude, the techies sitting a row behind me were speed-outsmarting each other, jumping from database mining, the UX challenge of creating a human-friendly pixel resolution, the myth of interferences for avionics, to the “stupid-smart Nathans” in their lives (sorry, guys, it was hard not to eavesdrop). I first listened with intrigue (because these guys were really, really smart, and I might as well just transcribe their conversation into a comprehensive SXSW summary post), but after a while I began to resist the unsolicited expertise, and browsing through the conference program I couldn’t help but think of my two favorite session titles this year: “Co-Founder Speed Dating” and “The Evolution of the Douchebag in Modern Cinema.” Giving up on my way-too-thin headphones, I craved an enclave that would offer asylum from the forced intimacy of all the power-chatter, a simple switch-off that would disconnect me from verbal deluge and provides some kind of digital refuge from the very human analogue conversation. With all the new services that enable ‘controlled serendipity,’ it seems ironic that social filtering assumes we constantly want to meet people. I wanted to un-meet. Now. And there was no app for that.

Obviously, the signs of the times are different. Social discovery was a main theme of SXSWi this year. Start-ups from Uberlife, Sonar, to Crowded Room were vying for the pole position in the race to become the de-facto in-situ connectors. The winner, I would submit, will be the one service that manages to balance the need to “find the like-minded” (predictability) with the desire to “discover the unexpected” (serendipity). The path between the two is where true meaning occurs. Being a social utility is not enough – the best matchmakers understand that their job is to put on a great game, not to predict its outcome.

Another theme was the browser vs. OS war, extending the conversation from Mobile World Congress in Barcelona that had preceded SXSWi. In light of the emergence of HTML 5 and Mozilla’s recently announced, much gushed about Open Web Devices (OWD) partnership with Spanish carrier Telefonica, the browser-OS web apps vs. native apps showdown drew a lot of attention. As Wireless Watch writes: “HTML5 is coming close to delivering the same quality of experience for web apps as native ones, and with its cross-platform nature can, theoretically at least, break the ties with the OS and allow non-platform owners such as operators or web service providers to create their own brand and distinctive offerings for any device.” My colleague Scott Jenson, creative director at frog, and a speaker at SXSWi, expects this trend to deliver on the promise of “just-in-time interaction,” allowing a far more seamless, personalized, and localized user experience than the super-fragmented native apps ecosystem can deliver today.

SXSWi was bigger, noisier, and messier than ever, and it was hard not get frustrated by the abundance of options and the scarcity of seats. But while there were some pleasant surprises (e.g. a session with “Catch Me If You Can” con artist Frank Abagnale), some panel topics are apparently evergreen. You could still find panels on crowdsourcing and branding in a social media world. The tone, however, was distinct this time: the digital literacy has increased exponentially, far beyond the tech in-crowd. The confidence and techno-swagger were staggering. And everyone, I mean, really everyone, was in town – hardcore digerati, outliers, cultural observers, and more and more business bigwigs. Location matters, and there is no place like SXSWi. Somewhere between hubris and pragmatism, the tech pilgrimage to Austin forms a unique geekipedia, a vast knowledge library, a mega-download of the future to come.

Speaking of which, the “Future of Work” was subject of a dedicated program track this year, and strikingly, eight years after the release of Thomas Malone’s seminal book, the main takeaway from the sessions was that the Future of Work may have already arrived – without us noticing it and indeed not evenly distributed. This became most apparent in a panel on “Decentralized Organizations - Do They Work?” with representatives from Zappos, Burning Man, Second Life-founder Philip Rosedale’s new company Coffee & Power, a marketplace for “small jobs”, and Malone himself. After several failed attempts to get a discussion going beyond just sharing anecdotes, a simple show of hands by the audience made clear that the session title was a rhetorical question. Of course decentralized organizations work. At least for a crowd like SXSWi, for which job title is oh-so-yesterday and even the online social status seems antiquated. The new currency is your latest venture.

Most of the people in the room appeared acutely aware of what Malone described as the historic opportunity in front of us: “For the first time we can combine the benefits of large organizations with the benefits of decentralized individual decision-making.” Indeed, if you combine economies of scale with the value of intimacy, you yield the “Economics of Emotion,” as Alan Zorfas coins them. In his recent article, he references a recent IBM survey poll of 1,700 CMOs who emphasized that building an enduring emotional connection with consumers is fast becoming a top business imperative.

Ironically, the very emotional bond, the very humanity we espouse as value in organizational designs, may be threatened by the technology we create: “True love is a lack of desire to check one's smartphone in another's presence,” the ever witty philosopher and writer Alain de Botton poignantly tweeted during the conference (perhaps during a date gone awry).

Keynote speaker Baratunde Thurston (The Onion) heralded the power of “laughter against the machine,” the importance of “artful ridicule,” of “comedy in the code”, and presented examples from various countries – from China to Afghanistan, Iran to Egypt. Not just coding or decoding, aggregating or analyzing, but “reading the world,” he argued, was an ever more important task in this day and age of big data, and as both institutions and experts experience an erosion of their authority, he demanded comedians step in as the new sense makers, the new interpreters who laugh off the tragic with humor. Thurston cited an Old Roman proverb, and his points were not breaking new ground by any means. But his humble and genuine delivery captivated the audience and was touching. As history has told us, it is the fools who speak the truth and foresee the future. Or you can just use Forecast, a social tool that asks “What are you going to do?” and thus captures a valuable aggregation of the likely future based on intentions.

Aside from all that, another key insight from SXSWi this year was that, as with every human enterprise, the effects of horserace politics have begun to kick in. It is now the Super Bowl for tech marketers. From political theatre to tech theatre – the backstory has become the actual story: Egos, plots, gossip, and campaigns trump the actual program. This year’s most controversial “meta-story” was BBH Lab’s Homeless HotSpots campaign – a “social experiment” that had been launched before SXSWi but reached a broader and more critical audience here that was quick in dismissing it as a ludicrous exploitation of homeless people. It is interesting to read The Atlantic’s analysis of how the public’s reaction went through all of Elisabeth Kubler-Ross' five stages of grief, but whatever you think of the appropriateness of the idea, the HotSpots campaign presented a welcome counterpoint to the dominant techno-optimism at the show – a gloomy and inadvertently comical question-mark amidst all the exclamation points. The same audience that had laughed about Baratunde Thurston’s irreverence was irritated by the absurd theater of the Homeless HotSpots, and the discomfort expressed in many blogs represented an underlying sentiment that may have gotten lost otherwise at SXSWi: social technology has invaded our lives, but it may not be the great socializer. Or as a colleague admitted over dinner: “Here I am with 17,000 like-minded souls and a dozen of social discovery tools, but when I wander through the halls, I couldn’t help but feel lonely at times.”

[image credit: Digital Journal]

Push to Pull

In light of the Arab Spring and the rise of India and China, and propelled by social technologies, the concept of ‘soft power’ (the phrase was coined by Joseph Nye in his 1990 book, Bound to Lead: The Changing Nature of American Power; defined as “the ability to obtain what one wants through co-option and attraction”) is ever more relevant. Or, in marketing terms, Push is out, Pull is in. If an idea, aspiration, product, goal, ideology, culture, narrative, or national identity is attractive to its constituents, it minimizes the need for constant reinforcement and regulation – whether that is advertising, promotions, and other persuasive efforts, or bureaucracy, command-and-control, and coercion. Pull is powerful (as John Hagel illustrates in his riveting book The Power of Pull). It has a lot of Pull (pun intended) because one doesn’t have to push. It saves energy that can be invested otherwise, for example, in whatever “it” is that creates Pull. No surprise then that individuals, organizations, societies, and entire nations wish they could rely on it more.

But how does one create Pull? Even the most ardent Pull apostle will admit that Pull doesn’t just emanate from nowhere. How much hard power do you have to leverage to create soft power? How much Push is needed to generate Pull? I conducted a mini-poll on Facebook asking that exact question, and the responses ranged from “the answer to this you can only feel” to “a lot.” I sketched a diagram for myself to better understand the forces at work between this power couple, and I came up with three Push-to-Pull ratios that may help you get your “Pull-Push balance” right.

- Positive push-to-pull ratio: If you deploy more Push strategies than the Pull that they generate, then you over-invest in Push and inevitably create an undercurrent, a backlash that can even decrease the current amount of Pull you have. You risk dissolving the entropy of the overall system. Your idea, your narrative, your brand will be seen as intrusive, and in the worst case, as spam.

- Neutral push-to-pull ratio: If your Push and Pull energy levels are in balance, then you achieve the perfect equilibrium. You don’t generate any incremental Pull but you also don’t lose any. You need to be vigilant not to overdo your Push efforts, or you compromise your Pull. One could also say that the very point at which Push threatens to exceed Pull is the demarcation line between ‘cool’ and ‘uncool.’

- Negative push-to pull ratio: The last and ideal state is have Pull exceed Push. This happens after a long period of Push when the scale of Push needed to create Pull decreases. Or when the idea, aspiration, narrative, and culture is so strong that it sustains and amplifies itself. If that’s the case, your job is to simply enable connections for the “idea” (in this case, refering to brands, you can speak of “brand ideologies” or “intrinsic brands” such as IKEA, Nike, Apple, or Starbucks).

These three relationships sit along a continuum, and perhaps it makes sense to consider them to be stages in the evolution of organizations. Fledgling start-ups will rely more on Pull (for they often lack resources to invest in Push), but as they mature, they will inevitably explore means to amplify their intrinsic Pull with Push. Eventually they are so established that they can rely solely, or mainly, on Pull, however now with far bigger impact than the one they were able to achieve as start-ups. There are two critical junctures on this continuum and corresponding decisions: When exactly, in the early stage of an organizational or brand development, do you start to invest in Push? And at what point do you decrease the level of Push so you don’t “push too hard,” over-reach, and jeopardize the valuable Pull you’ve generated? (Ever come across an ad from a brand that you adore and disappointed that the company had to advertise in the first place?)

Pull is a function of cultural power, of the routines and rituals, of the energy that is flowing through an organization. Energy here translates to intensity: not only the level of activity (knowledge flows, productivity, social interactions), but also the tension between actors, the battles between conflicting ideas. If your organization experiences tension, then it is “intense.” An intense organization is always stretched, intellectually and resource-wise, and it is constantly operating at capacity of what it is able to imagine and execute on – it is in a state of emergence, a permanent crisis, with a heavy dose of ambiguity, uncertainty, and even paranoia. This is a good thing: the fearful are paralyzed, the paranoid are proactive (and creative).

Pull comes from an original idea, a compelling story, a contagious meme. Astrophysicist and philosopher David Deutsch defines a meme as "an idea that is a replicator." “A rational meme replicates because people find it valuable,” he writes in The Beginning of Infinity. “An anti-rational meme replicates by disabling its holder's rational thinking so that one has no choice but to spread it.” That’s the difference between Pull and Push, intrinsic and extrinsic motivation, empowerment and enforcement, creativity and bureaucracy. Brands, countries, and movements that are built on rational memes have real Pull – and almost infinite staying power. The others will be pushed out sooner or later.

[image credit: timmonsandcompanyblog.com]

India: Urgent Emergence

This was India’s year. Obama visited, as did Sarkozy, and many other statesmen of lesser political weight or star appeal. With an annual growth rate of close to 8.9% and foreign direct investments projected to exceed $100 billion, the booming Indian economy defied the global recession. For the first time ever, eight Indian companies made it onto the Fortune 500 global list. And even PR crises like the ill-organized Commonwealth Games and political corporate scandals that were an easy target for India’s cynical media did not eclipse the nation's staggering rise – in fact, these events just seemed to magnify the spotlight. Without a doubt, the sub-continent became ready for primetime in 2010, and to many outside observers a new confidence appeared to take hold of India’s economic and intellectual elite.

This year also marked my first visit to India. I had the privilege of assuming leadership for a team in Gurgaon (New Delhi), Bangalore, and Chennai, and to immerse myself in a country I had never been to before. I vividly remember the first five minutes after my arrival at Indira Gandhi International Airport in Delhi in September, the dusty air, the thick fog, the vanilla scented perfume tree in the car, and the calm driver whom I, for lack of any alternative, decided to wholeheartedly trust as he was racing me to my hotel amidst the polyphony of honks. Other countries are in your face or slowly creep into your soul with their mores, oddities, and sensations. India is around you, all the time. It is simple as the tourist cliché of itself (especially when you live in the airport-lounge-and-luxury-hotel bubble of the global business traveler) and yet complex as a vertical staggering of infinite parallel worlds which make sense each by themselves but fail to strike a consonant chord – like in the movie Inception.

When I attended the India Economic Summit in Delhi in November a few weeks after my first trip, jointly hosted (for the 26th time) by the World Economic Forum and the Confederation of Indian Industry (CII), President Obama had just passed through India, leaving an indelible mark on the Indian collective psyche with his now famous line that “India is not emerging, it has emerged.” The mood was bullish, if not exuberant, and many considered the visit a breakthrough moment for India. The economic reality had not changed but the awareness of the sheer scale of the opportunity ahead and the self-assurance that it might indeed be feasible to accomplish it, had moved to a whole new level, seemingly overnight. No wonder the optimism was palpable at the Summit.

The official theme was “Implementing India” but the actual theme that emerged during the three conference days was “Inclusive Growth” – how can India sustain its tremendous growth and at the same time narrow the social divide? While India’s growth numbers are impressive, many of the speakers acknowledged that its so-called “demographic dividend” (a term coined by Harvard demograph David Bloom) is a double-edged sword. By 2020 half of India’s population will be below 25, and it will account for 25% of the global workforce. But this demographic trend is unevenly distributed. India’s northern states, with their high fertility rates, are the main contributors to population growth (by 2025, the median age will be 26) whereas the south faces rapid aging (a median age of 34 by 2025). This means that “India’s demographic dividend is actually a double hump, one of which is already nearly exhausted,” Infosys co-founder Nandan Nilekan writes in his seminal book Imagining India.

This “double hump” makes capitalizing on the remaining, “unexpensed” demographic dividend rather urgent. Experts foresee a demographic disaster unless India’s young workforce is properly skilled and employable by global standards. Unfortunately this is far from being the case today: For starters, 300 million people live in extreme poverty, that is, they live on less than one dollar per day, and 90% work in the informal economy. 70% of India’s 509 million-strong working population has not received a primary education, and only 11% of those aged 17-23 receive a higher education. India has the lowest education indicators among the G20 economies and the world’s highest number of illiterate people. One of the main challenges for India will be to create jobs for the 270 million people expected to enter the working-age population over the next 20 years. Will these people become the world’s workforce, as some predict, or the world’s worry?

Sustainable growth, many argue, will come from frugal (or reverse) social innovation, through public-private partnerships that scale at the base of the pyramid. It is well known that IBM has more employees in India than in any other country, and many of India’s big IT outsourcing companies (e.g. Wipro, Infosys, Tata Consultancy Services etc.) have long been competing with multinationals. But no longer is India just the development center of excellence of the world or an emerging consumer market of massive scale; it is increasingly home to bottom-up innovations in areas such as energy, healthcare, and automotive, spurred by the urgency of structural change. Crisis has always proven to be a hotbed of innovation, and the need to improve the livelihood of a society is a powerful driver for entrepreneurship.

India is already the front of some radical product and service innovations such as the $3,000 car or the two cents per minute nationwide cell phone service. Moreover, with the deep penetration of low-cost telephony, the country’s emerging middle class could be a testing ground for the burgeoning mobile health (mHealth) technology market, in particular telemedicine and rapid diagnostic services. Globally, mHealth revenues are projected to grow by 25% annually, from $1.5 billion in 2010 to $4.6 billion by 2014. India is seeing many of its pioneering efforts, for example start-ups such as mDhil and eHealthpoints. The Indian healthcare industry, in general, is one of the fastest growing sectors of the economy, growing at 23% per annum.

A basic enabler of “inclusive growth” is to provide the rural population with access to information- and communication technologies and financial services. Although India is the second largest telecom market in the world and tele-density has increased to 56.6% in 2010, 44% of rural Indian households are still unwired, and of India’s 6,000,000 rural villages less than ten percent have a local bank branch. Microfinance, long heralded as an able solution to this shortcoming, has recently suffered a serious setback. The rapidly growing private microcredit industry faced imminent collapse when almost all borrowers in Andhra Pradesh, one of India’s largest states, stopped repaying their loans. Critics accused microfinance institutions of making “hyperprofits off the poor” by extending loans to poor villagers at exorbitant interest rates and without enough regard for their ability to repay. It will take some time for the industry to restore trust (and some more regulatory oversight from the state will help, too). But again, this crisis may spur much needed innovation in the Mobile Money space.

India’s villages are increasingly becoming a breeding ground for innovation, as its rural poor develop inventions out of necessity. Mansukhbhai Jagani, Mansukhbhai Patel, Mansukhbhai Prajapati, and Madanlal Kumawat, and three others are on a recent Forbes list of rural Indian entrepreneurs (compiled by IIM-Ahmedabad professor Anil K. Gupta) “whose inventions are changing lives” of the people across the country. Jagani developed a motorcycle-based tractor for India's poor farmers, which is both cost effective – costing roughly $318 – and fuel efficient. A farmer, Patel invented a cotton stripping machine that significantly cut the cost of cotton farming and revolutionized India’s cotton industry. Prajapati, a potter, invented a clay non-stick pan that costs Rs 100 and a clay refrigerator that runs without electricity for those who cannot afford a fridge or their electricity and maintenance costs. Madanlal Kumawat, a grassroots innovator with no more than a fourth-grade education, developed a fuel-efficient, multi-crop thresher that yields cleaner grains, which can be bagged directly and eliminates the cost of cleaning.

Design and design-driven innovation are quickly entering the business vocabulary here, too, and when I met with editors of business publications in Delhi a few weeks ago, their interest in design was as keen as their conviction that India will soon become a powerful innovation engine with global impact, propelled by a distinct national design style and a throng of young, ambitious, and fearless entrepreneurs. It will require a mix of national policy and education providing the economic framework, global design and innovation firms bringing quality standards and best practices to India, and – perhaps most importantly – Indian companies embracing design as a key differentiator and value-driver, with some quick and visible market successes.

Whether you’re strolling through Old Delhi or driving along the campuses of Bangalore’s IT firms, you can’t help but marvel at the tremendous pace with which the country and its people are happening. The whole country is on the move, which offers plenty of opportunities for upward social mobility but also disrupts traditional lifestyles and cultures. New high-rise developments for the burgeoning middle class (91 million urban households are projected to be part of it by 2030, up from 22 million today) stand in stark contrast to the poor villages right next to them, which are in the progress of upending their local identities and cultural roots. According to the United Nations Development program, it is expected that 41% of India’s population will live in cities by 2020, compared to less than 30% in 2010. That is 590 million people, nearly twice the population of the US today. A recent McKinsey report (“India’s Urban Awakening: Building Inclusive Cities, Sustaining Economic Growth”) estimates that 70% of net new employment will be generated in cities by 2030 and that 85% of total tax revenue will come from the urban economy.

Needless to say, that this migration will further contribute to stresses on the already insufficient infrastructure. McKinsey expects 68 Indian cities to have a population of more than one million by 2030 (up from 42 today vs. 35 in Europe). It warns that the current urban policy framework will lead to urban decay and gridlock. Today, India is investing eight percent of its GDP in infrastructure, which is a high number by international standards. And as much as $300 billion are forecast to be devoted to urban infrastructure over the next 20 years, a twofold increase in per capita spending of $17 today. But McKinsey believes that $1.2 trillion capital investments are necessary to meet the projected demand in Indian cities. The firm proposes fundamental city governance reforms to ensure these funds are not only raised but put to work efficiently. Unlike China, India cannot issue sharp policy shifts to appease a young population that may not be satisfied with the living standards of their parents. If urban policies fail, social upheaval, fuelled by underlying religious and ethnic divides, will likely be the result. Or as Nandan Nilekan puts it: “This is our biggest, but also our last chance.”

India is aware of its “moment” and understands that the window of opportunity for inclusive growth is limited. The government is seeking to balance the hustle, the frenzy, and the urgency with calm and confidence. It is the only possible attitude when you have to govern what seems to be genuinely ungovernable. I thought of a line from a song by Thom Yorke: “You have all the time in the world. Don’t squander it.”

[picture: painting by Vangobot. Vangobot is "a robot who paints with the soul of the human artists who taught him how to see."]

The Economist and the Human Potential

If TED is about “Ideas Worth Spreading,” then the Economist’s Ideas Economy conference series is – as the title would suggest – about ideas worth monetizing. It’s the Economist, stupid! The venerable publication, a notorious late adopter, has realized that despite solid market standing it must reinvent itself to survive, both through a suite of new digital products and by branching out into the conference business. The focus on Innovation (as in “a commercialized original idea,” as the excellent moderator Vijay Vaitheeswaran defined it in his opening remarks) is a natural fit: The Economist has always stood for liberal economic policies and liberal social values – which is typically the kind of fabric that innovation thrives in.

The most recent event of the series took place last week in New York: With the theme “Human Potential,” 250 business leaders, entrepreneurs, politicians, and academics discussed for two days how to foster and tap into the creativity and intellect of their employees, stakeholders, peers, and students. The cynic could object and ask “Do we indeed have potential?,” inferring that the term “potential” implies progress and betterment – but are we, humans, even good? And if so, can we get better?

According to Harvard psychologist Steven Pinker, the answer is a clear yes. He presented a “history of violence,” arguing that violence is on the decline, which, as he readily admitted, appears to be somewhat counter-intuitive, knowing that there has not been a single day without war in the history of mankind. Attribute this to a recording bias: The magnifying effect of mass media makes violence more visible than ever before. Yet, Pinker cited empirical studies showing that the amount of actions which cause physical harm has steadily decreased over the past centuries. Despite the many atrocities it saw, the 20th century was not the most violent century in terms of absolute numbers (compared to the total world population), and acts of terrorism, Pinker pointed out, can only be described as (statistically) “insignificant.” Clearly, Pinker commented, the US overreacted in response to the 9/11 attacks. Before you cheer about the rise of human enlightenment and moral reasoning, however, consider that the way violence is committed may have become more subliminal, and that, more pressingly, weapons of mass destruction in the hands of a few rogue individuals (or states) can arguably do more harm nowadays - that is, cause ‘ultimate violence' - than ever before. Additionally, it remains difficult to project future trends based on historical data so that an overly optimistic, non-violent concept of human potential might be flawed because of a bias of retrospective. In fact, the Rational Optimist's great blind spot is that it cannot look into the “heart of darkness,” that it has no means to explain or forecast truly irrational behavior.

On top of that, it is, of course, particularly hard to assess the human potential when you are human. Is human potential limited to humans? Can humans really fully unleash their own potential or will it take artificial intelligence to do so? Were the attendees in New York able to realize human potential or rather its impediment? The conference, for the most part, stayed away from such provocations. Notwithstanding the occasional excursion into macro-economic or philosophical debate, most of the program was devoted to more pragmatic topics such as employee motivation, knowledge management, institutional and non-institutional learning, and creative thinking.

Like Pinker, Richard Florida struck an optimistic tone in his opening keynote, in which he heralded creativity as the essential resource of our societies. According to Florida, one third of the US workforce is employed in the creative sector, generating 50% of the overall wages. The unemployment rate has only gone up by 5% during the economic downturn, much less so than in other market sectors. Creativity, says Florida, is the key to economic recovery and the main catalyst of the “Great Reset” that he proposes. Asked about what he would tell the citizens of Detroit, he said “harness the creativity there,” claiming that “if we could turn 60% of services jobs into creative job we would boost the economy.” While that stood uncontested, his insisting on the metropolitan region as the hub of the “creative class” provoked more audience dissent in the subsequent Q&A. In the connected age of virtual worlds and social networks, the physical density of “idea people” seems to have lost some of its relevance. This is not to argue the importance of geographical talent clusters, but increasingly, innovation overcomes boundaries of space and happens whenever, wherever people meet (online). Geography is no longer destiny, and no longer does human potential start in cities, as Florida claims.

My colleague Robert Fabricant, VP of creative at frog design, who spearheaded a “social experiment” at the conference (more about that in another post soon), offered a less class-centric view on creativity. For him, creativity does not exist so much exclusively within an individual as it does between two entities: “Because that which is created needs a response to bring it to life.” He used the analogy of the old Roadrunner and Coyote cartoons to illustrate this collaborative creative interaction that is at the center of innovation.

The relationship between creativity and well-being, values and value, social purpose and money, self-actualization and economic success was the main theme of the conference. Jim Clifton, the CEO of Gallup, shared some remarkable insights, based on his institute’s annual survey on “what does the whole world want?” This time, the majority of respondents said: “A job” – in stark contrast to previous years when the answers had ranged from “a happy life,”and “family,” to “health.” The responses this year shifted the focus to the bottom of Maslow’s pyramid. Why is that? First of all, the inequality between the rich and the poor is growing, and it is no surprise that many living in developing countries consider “finding a job” an existential need. Secondly, the growing middle class (in India and China, and other emerging markets) has become much more aware of its possibilities and views employment as the main enabler of a brighter future for themselves and their families, one that often includes better education and increased consumerism. And then, well, there was the recession in the developed world - and its lasting implications.

So are we seeing a renaissance of materialism? Does money beat meaning? The final debate of the conference, conducted in classic Oxford-style, looked at this conflict through the veneer of employee motivation. Yaron Brook of the Ayn Rand Institute and entrepreneur Lynn Tilton, CEO and principal of Patriarch Partners, contended that “money motivates more than social purpose.” The two were facing formidable opponents in Clay Shirky (author of Cognitive Surplus) and Dan Ariely (author of The Upside of Irrationality), who argued that social purpose was the more powerful motivator. The pro faction – albeit perhaps exhibiting more passion – ran out of arguments soon and could eventually only help itself by evoking the Nazis (Godwin’s Law posits that “as an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1. In other words: all discussions - regardless of topic or scope - inevitably end up being about Hitler and the Nazis.") Brook and Tilton’s mechanistic concept of human behavior was easily rebutted by Shirky and Ariely, who insisted that money is always only a substitute of meaning,refering to Wikipedia, Lego, and other examples of meaning-driven engagements. “Money can motivate your employees to show up,” Ariely said, but if you want them to not just show up but commit with their full creative and intellectual potential, you need to motivate them with non-monetary incentives.”

This view was echoed by Cristóbal Conde, president and CEO of IT services company Sungard, who endorsed transparency and called “creating a platform for collaboration” the most important task of today’s business leader. It didn’t matter that he almost literally borrowed his own words from an interview with the New York Times earlier this year – they still rang true. “Collaboration is one of the most difficult challenges in management. I think top-down organizations got started because the bosses either knew more or they had access to more information. None of that applies now. Everybody has access to identical amounts of information.” Conde said further: “The answer is to allow employees to develop a name for themselves that is irrespective of their organizational ranking or where they sit in the org chart. And it actually is not a question about monetary incentives. They do it because recognition from their peers is, I think, an extremely strong motivating factor, and something that is broadly unused in modern management.” Conde: “Micromanagement doesn’t scale because it spirals down, and you end up with below-average employees in terms of motivation and ability.” Sungard uses enterprise micro-blogging service Yammer to enhance internal knowledge sharing: “It has given our employees a voice.”

With CEOs like him, the company is not a 20th century idea: “The more I teach, the more I learn," Conde said. Humility, openness, and collaboration are the hallmarks of a new kind of humanistic organization, led by humane leaders. That’s an idea worth spreading – and monetizing.

Meaning-Driven Brands

 

A List of Visionaries/Sensemakers/Disruptors/Game Changers/Contrarians

As the world slowly emerges from the economic gloom, and the “hyper-social real-time web” requires new organizational designs, it’s clear that business as usual will not be so usual anymore. Yet fundamental concerns remain, both for business leaders, who face the challenge of innovating in a hyper-transparent and always-on environment, and for consumers, who are increasingly searching for non-economic values amidst the shattered trust in business and the information overload. Smart companies recognize the historic opportunity to transform the way they do business and provide customers with more value-rich, sustainable, and meaningful products, services, and business models. From “un-entitlement” to “disruptive realism” to “for-profit activism” – here are some of the new paradigms that shape meaning-driven brands.

EMPATHY: GE

GE, which is widely known for its rigorous, metrics-based performance management, is changing course and shifting attention to social intelligence, empathy, and listening skills. The company is putting 1,000 managers through their paces to learn how to react to sometimes imperceptible signs of change. While this is not entirely new at GE or any other company, GE is striking a refreshing tone, admitting that: “We don’t have all the answers.” In A Whole New Mind – Moving from the Information Age to the Conceptual Age, Dan Pink wrote several years ago that “Creators and empathizers, pattern recognizers and meaning makers are holding the keys to the new empire,” and GE, humbled by the recession, is catching up with that insight. It emphasizes context over text, the Big Picture over details, listening over brand control and messaging discipline.

UN-ENTITLEMENT: Alibaba

Ma Yun, the president of Alibaba, the world's largest online B2B marketplace, requested that the 18 co-founders resign from current positions in the company and re-apply for jobs – a radical measure to reshape the company’s culture and administration in order to face new challenges in e-commerce after one decade of fast growth.

UN-MARKETING: Costco

The employees of large US retailer Costco are known to be incredibly loyal, which can be attributed to a host of exceptional programs and benefits to motivate them. It doesn’t hurt that Costco pays, on average, $17 an hour, which is 42 percent higher than the average hourly pay of its fiercest rival, Sam’s Club. And Costco's health plan makes those at many other retailers look Scroogeish. Costco’s CEO, James Sinegal, firmly believes that keeping employees satisfied and committed will result in profitability for the organization in the long run. With such a loyal employee base, Costco can maintain the luxury of relying only on word-of-mouth, not having a PR department, and striving to connect with its customers solely through the in-store experience.

RADICAL TRANSPARENCY: Dachis Group

On the Social Web, companies may soon need to share everything about their business, including complaints, profit margins on particular products, and even corporate strategies. In the spirit of Radical Transparency, companies could even make their live email correspondence public. An open and interactive email feed may propel knowledge sharing and collaboration, but also an ongoing conversation that customers, partners, and global media can join. A first step in this direction is the list of outbound emails (“ABC just sent an email to XYZ”) that the Dachis Group, a global social business consultancy, publishes on its web site. It draws the visitor into a stream of real-time events and provides a snapshot of the company’s social graph. This openness, not to mention the implied social references (in a sense, the email recipients vouch with their name), builds trust.

OPEN INNOVATION: Nike + Creative Commons, Best Buy

Nike is committed to developing products that use sustainable materials and are designed for easy disassembly. In its commitment to protecting the environment, the company is sharing its knowledge so other businesses can do the same. Nike has partnered with Creative Commons and Best Buy to support a shared vision of “creating a platform that promotes the creation and adoption of technologies that have the potential to solve important global or industry-wide sustainability challenges.” Together they have formed the GreenXchange. The project aims to develop strategies for using patents and know-how to facilitate and promote open innovation. In late October, 2009, Nike also entered a partnership with social innovation network PopTech as the first participant in the PopTech Labs to “foster open collaboration on key innovation challenges.” Each of the PopTech Labs will bring together a select group of leading scientific researchers, engineers, designers, corporate leaders, policymakers and other key stakeholders around a single topic of research in areas of vital importance to business, society, and the planet.

Best Buy‘s mantra is “the company as wiki.” The company is tapping into its 130,000 employees to market its brand rather than just relying on the marketing staff to do so. It is a great example of how a major company has redefined its attitude towards control and information.

NOWISM: Zara, TCHO, Zappos

Customers always want it faster, that’s not news. But the implications of the real-time web are more profound and affect the way organizations operate and adapt their business models to the new and ever-changing demands of immediacy. Zara, the Spanish clothing chain, uses customer feedback to develop new clothes, in near real-time. TCHO, the San Francisco-based chocolatier, relies on continuous flavor development and customer feedback to drive constantly evolving versions of its dark chocolate, with variations emerging as often as every 36 hours. Zappos, the online shoe retailer, successfully combines real-time customer service on Twitter with near-real-time product delivery.

GLOCALISM: FC Barcelona

FC Barcelona (“Barca”) was one of the first soccer clubs to be founded in Spain, and it became a haven for Catalan sentiment when Catalan self-government and culture were proscribed during Franco’s dictatorship. The club emerged as the playful manifesto of Catalonia’s spiritual independence, and since then, nowhere has soccer been more fundamental to the sense of identity than in Barcelona. It is ironic that a club rooted deeply in Catalan nationalism has such an international following. But Barca’s appeal is so global precisely because its roots are so local. Barca represents the Catalan people while at the same time creating a sense of belonging to “beauty and excellence.” The meaning of Barca transcends the boundaries of sports and nations, and embodies the universal values of sportsmanship and integrity. Barca is fully owned by its members, unlike most other big soccer clubs – which are either in the hands of large corporations or American (Manchester United) and Russian (FC Chelsea) billionaires – and the members possess significant voting power. Based on its spirit of independence, the club has always taken on broader social issues and played a pivotal role in promoting diversity, tolerance, and peace worldwide. Barca’s partnership with UNICEF is a statement of the club's continuing efforts to be at the forefront of solidarity projects with a global reach. Under the agreement, which bears the slogan “Barcelona, more than a club, a new global hope for vulnerable children,” Barca contributes to the financing of UNICEF humanitarian projects and endorses UNICEF on its shirts – it is the only major European team not to wear an advertisement.

COMMUNITY MARKETPLACE: Etsy

Etsy is an online marketplace for buying and selling all things handmade: clothing, music, furniture, software, jewelry, robots. Since launching in June, 2005, the company has experienced incredible growth with hundreds of thousands of sellers globally. A grassroots community has developed amongst its buyers and sellers, and Etsy facilitates these interactions. For example, Alchemy is a space on Etsy where members can post requests for custom handmade items, and sellers submit bids to create them. Etsy also helps bring its online community to real-world teams (organized by location or type of craft) for its sellers to connect and share ideas. Etsy’s mission is “to enable people to make a living making things, and to reconnect makers with buyers. Our vision is to build a new economy and present a better choice. Buy, Sell, and Live Handmade.”

CAN-DOISM: Coca-Cola

With its Expedition 206 campaign, Coca-Cola is tapping regular people to be their “Happiness Ambassadors” and travel the world throughout 2010, documenting their quests via blog posts, tweets, YouTube videos, TwitPics, and other social media tools. The goal of the campaign is to “find happiness” in 206 different countries that sell Coca-Cola products around the globe. The winning three-person team, selected out of numerous applications, began its journey on January 1, 2010 and is attempting to travel more than 150,000 miles in 365 days. On the way, the team will experience the Winter Olympics in Vancouver, the FIFA World Cup in South Africa, and the World Expo in Shanghai. The team’s duty is to engage with locals and uncover what makes them happy, openly document and share their experiences online, and complete tasks in each country as determined by online voters. The campaign connects the ambassadors, and by proxy, the global Coca-Cola customer base, with locals. Through immersion, it will generate empathy and understanding for local cultures. On the web, the campaign will “activate” a dormant network of Coke fans that will follow the ambassadors’ travels and connect with each other. By connecting people from different cultures, Coca-Cola offers a way of looking at the world and creates social wealth: better mutual understanding through enhanced intercultural knowledge.

ONLINE ACTIVISM: Pepsi Co.

For the first time in 23 years, Pepsi Co. decided not to run any advertisements during the Super Bowl in 2010. Instead, the nation’s second-biggest soft drink maker plowed marketing dollars into its Pepsi Refresh Project, an online community that allows Pepsi fans to list their public service projects, which could range from helping to feed people to teaching children to read. Visitors to the site can vote to determine which projects receive money. The program will pay at least $20 million for projects people create to "refresh" communities. Last year, Pepsi Co. spent $33 million advertising products such as Pepsi, Gatorade, and Cheetos during the Super Bowl, according to TNS Media Intelligence, $15 million of it on Pepsi alone. Ad time last year for the NFL championship game cost about $3 million for 30 seconds, on average. Pepsi Co. spokeswoman Nicole Bradley said Super Bowl ads don’t work with the company's future goals: "In 2010, each of our beverage brands has a strategy and marketing platform that will be less about a singular event and more about a movement."

RADICAL CROWDSOURCING: Victors & Spoils (V&S)

Two Crispin Porter + Bogusky alums have launched Victors & Spoils (V&S), “the world's first creative agency built on crowd-sourcing principle.” V&S says it will “provide businesses with a better way to solve their marketing, advertising and product-design problems by engaging the world’s most talented creatives.” V & S is eating its own dog food. The first line you notice on its web site (after the humble “Welcome to Victors & Spoils. Let’s Change an Industry”) is “Why does this site look so plain, Jane?” and the answer is: because the site design, the look and feel, and even the logo are being crowd-sourced. V&S received thousands of applications for crowdsourced projects in the first week after launch.

CREATIVE CONVERGENCE: British Airports Authority and Alain De Botton’s Heathrow Diary

The Swiss writer Alain De Botton was commissioned by the British Airports Authority (BAA) to spend a week in the middle of Heathrow’s bustling Terminal 5 and write about life at the airport. Dan Glover, creative director at Mischief, BAA’s PR agency, said that “If we funded a brochure that said how wonderful the airport was, people would switch off because they’d think they’re being marketed to.” Instead, he added, the Heathrow Diary campaign sought to stimulate “branded conversations” among travelers “through the experience of seeing a top literary figure at the airport — and potentially being a character in the book — and by receiving an exclusive copy to read on your travels. The overarching objective is to make a passenger’s time at Heathrow the best memory of the trip.”

PRESENCE THROUGH ABSENCE: Maison Martin Margiela, +/-0

Instead of crafting a story around its clothing line, Cult fashion brand Maison Martin Margiela (MMM) has remained swathed in anonymity throughout its 20-year history. Namesake designer Martin Margiela chose to remain out of the spotlight, and it was this invisibility that helped to develop the brand. MMM became a household name and its admirers, devout acolytes of the brand. This cult of impersonality spread through the aesthetic of the brand: Stores are never listed in phone books or identified with signage; staff at stores and at Margiela HQ wear standard white lab coats; white is also the ubiquitous color of all stores, MMM’s HQ, and the sheets that cover all in-store furniture and displays; packaging is monochrome and logo-free; models at MMM often appear on the runway with covered faces; seating is mostly first-come, first-served, avoiding the industry standard of seating hierarchy; and the company uses a first person plural response to all inquiries, emphasizing the collaborative, disciple-like consensus of their thoughts.

Japanese brand +/-0 strives to offer “only the things we need.” In response to a belief that many of the products found in the global marketplace are superfluous, +/-0 seeks to design necessities that last a lifetime. The firm has dedicated its business to creating things that “people feel they have truly wanted. Things that seemed like they already existed but didn’t.” These things enter the market without fanfare. The products are carefully designed so the fact that they are unseen makes them appear to have always been there: “Because these things ‘seem to have already existed,’ people feel comfortable with those things, even though they have never seen them before. It is the feeling of having seen the actual shapes of things that people have obscurely, or even unconsciously, felt they have wanted. That is why these things naturally ‘dissolve’ into people’s behavior and into the space around them.” +/-0 began in September, 2003 in Tokyo. The website launched in December of the same year with the quiet unveiling of the first collection by design director Naoto Fukasawa. Since then, the company has garnered widespread attention in the design world for its understated composition. Fukasawa’s personal philosophy is that he’s designing for the gaps, bringing to life a “shared sense” of what should be there.

DISRUPTIVE REALISM: UNICEF

Disruptive Realism is an expression presented in an everyday context that disrupts people’s perceptions about different things. The most prominent example to date has been Orson Welles’s War of the Worlds radio broadcast, which was meant as entertainment and commentary on how evolution had been twisted into Social Darwinism. Regardless of its intention, the broadcast caused mass hysteria. More recent examples include Banksy’s graffiti, Bruno Taylor’s work, which involves physical designs such as the swing set in the bus stop, or Reverse Graffiti artist’s Paul Curtis’ “Pictures by Cleaning.” Disruptive Realism was also used in a campaign conducted by UNICEF in Finland. Wanting to raise awareness of children’s rights, the “Be a Mom for a Moment” campaign placed unattended blue strollers with a crying baby audio track in crowded places in 14 cities. When passers-by looked in the strollers, they found a note with the message: “Thank you for caring, we hope there are more people like you. UNICEF – Be a mom for a moment.” The media and public reaction was overwhelming, with coverage in all major TV, radio, and web news.

FOR-PROFIT ACTIVISM: Virgance

The San Francisco-based venture fund Virgance aims to support social causes through multi-pronged campaign platforms that resemble the way Obama for America mobilized its supporters, and it typically consists of four core elements: A web-empowered network of volunteers, a presence on Facebook, a team of paid bloggers to promote the campaigns, and YouTube viral videos. Virgance is not the first for-profit-do-gooder of course; there have been plenty of others whose business models combine bottom line thinking with social value. But Virgance is more like Facebook Causes. It adopts the forces of amateur self-organization described in Clay Shirky’s Here Comes Everybody and builds its entire business on a social web platform, embracing the principles of open-sourcing, mass collaboration, and transparency: “If a for-profit company did the type of work that non-profits often do, but did it more efficiently, would people trust it the same way they trust non-profits?”

Lift10: Connected People

Describing itself as "a series of events built around a community of doers and thinkers who get together in Europe and Asia to explore the social consequences of new technologies," Lift is definitely one of the best conference networks out there. Laurent Haug, Lift founder and curator, is a wonderful host and has managed to maintain a strong sense of community despite continued growth. In addition to numerous satellite events with partners, Lift organizes conferences in France and Korea, as well as the annual Lift conference in Switzerland as its main hub.

Lift10 will take place from May 5-7, 2010 in Geneva and welcome 1,000 participants from 40 countries to "explore the most overlooked aspect of innovation: people. Known in the techno-parlance as users, consumers, clients, participants, prosumers, citizens or activists, people ultimately define the success of all technological and entrepreneurial projects. They adopt or refute, promote or demote; embrace, reject, or re-purpose. Their approaches are unique, influenced by cultural and generational diversity. A decade after the rebirth of user-centered design and innovation, it's time to explore the myths and uncover the reality behind the 'connected people.'"

Check out some of the Lift10 speakers that have already been confirmed.

The early-bird deadline just got extended to January 31 – you can register here.

New Perspectives On The Work/(Life) Conundrum

My mom always told me “Make your passion your profession, and you’ll be a happy man.” She was right, and I am glad I followed her advice. Yet I appear to be part of a minority. In an article about growing disenchantment at work (“Hating What You Do”), this week’s Economist cites a survey conducted by the Center for Work-Life Policy, an American consultancy. It found that between June 2007 and December 2008 the proportion of workers who professed loyalty to their employers slumped from 95% to 39%, and the number voicing trust in them fell from 79% to 22%. Furthermore, the article refers to a more recent survey by DDI which found that more than half of the respondents described their job as “stagnant,” as in “nothing interesting to do” and “little hope of professional growth" within their current organization. Half of these “stagnators” said they were planning to look for another job as soon as the economy recovered. These survey findings are flanked by several recent cultural events in the US that indicate a shift in the way we negotiate the meaning of work, for example Michael Moore’s “Capitalism – A Love Story” and a whole New York Times Magazine issue on “Anxiety.”

And yet, Americans will be surprised to hear that the most dramatic manifestation of this apparent misery-at-work trend occurred in “socialist” France. A spate of attempted and successful suicides at France Telecom that occured over the past twelve months, many of them explicitly prompted by stress and dissatisfaction at work, forced the deputy CEO to resign and sparked an emotional national debate about life in the modern corporation.

“You are what you do,” German philosopher Immanuel Kant contended long before we started talking about Work/Life balance. Having always been an idealistic concoction most fervently promoted by those biased towards Life, this balance wouldn’t even need to be promoted if it were indeed a battle of equal powers. It isn’t. Work has invaded every single aspect of our lives, and it has infiltrated our society Mafia-style: controlling and demanding every hour of our lives without appearing to do so. Increasingly, Work is no longer visible as such and is instead embedded into Life, which makes its power even more frightening: If you do things that are work but don’t feel like work, then Work has ultimately prevailed.

With the advent of digital media, the relationship between Work and Life has again dramatically changed. Social computing has turned the workplace into the living room and the living room into the workplace. For the digital knowledge workers of the attention economy, it has become harder, if not impossible, to separate Work and Life. The concepts of live-to-work and work-to-live, often pitted against as a clash of American and European cultures, are too one-dimensional to truly capture the reality of most professionals today. Work is Life, and Life is Work, and there is not much in between. The question is no longer how we can balance our digital lifestyle with our professional lives, the question is: How were we able to get any work done before the digital era? And how did we have a life before Twitter?

The new digital work lifestyle has profound implications for one’s (professional) identity: What do you do when everyone else does everything all the time? With everything and everyone connected, the once clear contours of our existence give way to an indistinguishable maelstrom of stimulation: the story of our life is no longer a curriculum, it is a non-linear stream. You can go swimming, fishing, snorkeling, and sailing in it. You can choose to stay on the surface or take a deep dive. But you can never leave. And you can always drown. With Work and Life being the Big Blend, it is shocking but not surprising that for some the only way to take a break from Work is to take a permanent sabbatical from Life, as in the case of the France Telecom workers.

The borderless Work/Life experience creates agoraphobia, an anxiety about an indefinite space of self-actualization possibilities and one’s position within. As Alain de Botton, the philosopher for the knowledge worker, put it: “It’s perhaps easier now than ever before to make a good living. It’s perhaps harder than ever before to stay calm and be free of career anxiety.”

The Economist suspects that companies aggravate this anxiety by a new, ill-conceived form of Taylorism: “Giant retailers use ‘workforce management’ software to monitor how many seconds it takes to scan the goods in a grocery cart, and then reward the most diligent workers with prime working hours. The public sector, particularly in Britain, is awash with inspectorates and performance targets. Taylorism, which Charlie Chaplin lampooned so memorably in ‘Modern Times,’ has spread from the industrial to the post-industrial economy. In Japan some firms even monitor whether their employees smile frequently enough at customers.”

These are all measures that will very likely deter Generation Y workers, the digital natives who have grown up with the Internet and expect organizations to provide them with much more ambiguity and empowerment than these were willing to give to their parents. For the Gen Y’ers, Work is no longer just what you do; Work is another way of Life – a meaningful life. It implies a Work-Life package that reconciles passion and profession, meaning and earning, impact and income. A good job is what you believe in – as long as you can abandon it at will. Sure, Work has become invasive, but so has Life, as work performance is being constantly disrupted by the micro-events in one's digital life feed (email, Twitter, blogging, social networks, etc.). Companies need to learn to convert this distraction into productivity. In fact, this might be the biggest management challenge for the next ten years: Learning how to leverage the tools of distraction to increase productivity – and happiness.

No matter where on the Work/Life continuum you’d place yourself, you will acknowledge the one premise that unites us all: how we are going to work in the future will determine how we’re going to live in the future. Consequently, the Berlin-based creative collective Palomar 5 believes that the best way to find out about the future of work is to let people from different backgrounds work together. Palomar 5 has therefore organized a six-week long Innovation Camp in Berlin that gathers, Big Brother-like, 30 handpicked uber-achievers under 30 to explore (and live together) a vision of work in the digital future. The Camp’s agenda and workflow have been carefully crafted and encompass various modules, guest experts (among them a team from the frog studio in Stuttgart), and collaborative creative assignments that tackle Work/Life as one big design challenge.

In a similar vein, The Internet As Playground and Factory: A Conference on Digital Labor will be held at the Eugene Lang College of The New School in New York City on November 12-14. An overview Introduction sets out the seminal questions arising “in the midst of massive transformations in economy, labor, and life related to digital media.” The conference is free, with advance registration required.

There’s no dearth of books on the subject either: If I had to pick two, I’d go with Alain de Botton’s The Sorrows and Pleasures of Work (with a poignant chapter on accountants) and Don Tapscott’s Grown Up Digital which provides a comprehensive overview of the aspirations and habits of the Gen Y workforce.

Oh, and last but not least, our next design mind issue will be dedicated to “Work/Life” – if you would like to contribute or submit ideas for articles and art, please contact us at [email protected] (we love our work so much we’ll even respond on weekends…).

SOCAP09 (Social Capital Markets) Conference Brings Together Social Innovators from Government and Business

The Social Capital Markets (SOCAP) Conference, a landmark gathering of top business and government leaders creating market-based solutions for social impact, is taking place September 1-3, at San Francisco’s Fort Mason Center.

SOCAP brings together a unique mix of the world’s leading social innovators – traditional investors, impact investors, social entrepreneurs, philanthropists, new media, NGO’s and non-profits, wealth managers, development agencies, venture capitalists, MBA students and other groups interested in the growing opportunities of social capital — who are catalysts of change across the globe.

Last year’s conference gathered more than 650 leading global investors and entrepreneurs from 26 countries. This year’s conference from September 1-3 in San Francisco is sold out again and features speakers from the Skoll Foundation, Participant Productions, Food Inc, GRITtv, LINKtv, Invisible Children, Global Giving, the World Economic Forum, Virgance, Kiva, Change.org, Ushahidi, McKinsey, The Economist, and many others. The opening keynote will be given by Sonal Shah, Director of the White House Office for Social Innovation.

“SOCAP09 is the premier event that puts the flow of capital to social good into a context,” says Founder Kevin Jones. “In these turbulent times, social innovators in the public and private sectors, from foundations to social venture funds to development agencies to grassroots Web 2.0 activists, are working together to build a new economic foundation for the world. With our expert speakers, high-impact sessions and exciting networking events, SOCAP09 is an essential gathering for anyone interested in the burgeoning field of social capital.”

I will be there, too, and report. You can also follow the conference online via:

SOCAP09 Blog

Twitter: @socap09,#socap09

A Movement for Meaning-Driven Business?

frog design's promised series on “Meaning-Driven Business” is taking shape. After introducing the concept of “Chief Meaning Officer” in the “Power” issue of design mind, we are going to formally launch this new forum in our upcoming special TEDGlobal issue (to be released on September 21) as well as on a special micro-site to be launched in a couple of weeks.

For the first round of essays, we are delighted to have received contributions from three industry and thought leaders: Beth Comstock, chief marketing officer of GE and one of the world's most influential Fortune 50 marketing executives, will take the economic crisis as an opportunity to make the case for marketing-driven innovation. Werner Bauer, Nestle's chief technology officer and head of innovation, will describe his company’s concept of “Shared Value” and how it enables a more socially responsible business. And Dev Patnaik, founder and chief executive of innovation consultancy Jump Associates and author of the book Wired to Care, will illustrate how “high-empathy organizations” of all kinds prosper when they tap into a power each of us already has: the ability to reach outside of ourselves and connect with other people. Stay tuned!

The conversation is continuing in other outlets, too, and some pundits want “meaning” to not only be an abstract concept, but a movement. Economist Umair Haque is one of them. His "Generation M (as in “meaning”) Manifesto" stirred some controversial reactions (just read the comments on his blog) – from unconditional endorsement to accusations of arrogance and naiveté. It is one out of many manifestos that have recently been published on the new “new economy” – this, too, is a sign of the times. Manifestos indicate an increased need for ideological alternatives – and meaning.

Inspired by Haque’s Manifesto, Landor’s Scott Osman writes that “Smarter brands are already aligning themselves with better activities, making better actions a brand attribute. Perhaps this is an honest shift by management, perhaps it is recognition that the game has already changed and they need to start turning their ships around before they find themselves going in the wrong direction. IBM, GE, Coke, Pepsi, and Starbucks (to name a few) have already begun their commitment. Many others will surely follow. It is certain that the rules between the customer and the company are going to be rewritten and this time—caveat venditor.”

For all those companies wanting to follow, Sohrab Vossoughi, the founder and president of design consultancy Ziba, has developed a “Survival Guide for the Age of Meaning” that is worth reading. He observes, “Gone are the days when the master brand was king and companies were customer-focused only to the extent that customers generated sales. More than ever before, today’s savvy, choice-fatigued and cash-strapped consumers crave meaningful connections with brands that allow them to be more authentically themselves.” To respond to this trend, he recommends companies apply four key principles: 1. Create meaning; 2. Less is more, 3. Take a platform-based approach, and 4. Consistency is key.

Roberto Verganti takes this one step further and in his new book provides a comprehensive framework for Design-Driven Innovation. He believes that there is a "Third Way of Innovation," beyond radical innovation pushed by new technologies and incremental innovation pulled by market forces. This Third Way is, he asserts, is driven by meaning, or to be more precise, by those cultural “interpreters” who have the ability to “make sense of things” and give existing things new meaning – and thus create new markets. They don’t have to be designers, but it turns out they often are – at least by a broader definition. How can companies apply this concept? By investigating the evolution of culture, society, and technologies, says Verganti, and by putting forward visions about possible new product meanings that people have not solicited but that they were eventually just waiting for.

Reading all these recent blog posts, articles and books, it appears that the term “meaning” – obviously highly elusive anyway – is consistently used in two different meanings: one is focusing on sensemaking, the social and emotional relevance of products and services (that’s the designer’s perspective represented by Verganti, Vossoughi, and others), the other one is more concerned about meaningful actions, the social impact of brands and their contract with society at large (Haque). It is important to establish a clear nomenclature and distinguish these two dimensions of “meaning” in the current debate. Neither dimension is particularly new: The idea of design-driven innovation has been around for a while, and so has the idea of corporate social responsibility. What’s new and interesting, however, is that these two dimensions increasingly converge (see David Armano’s writing). You can see more “Design for Impact”-type initiatives emerge and more design-driven innovation that takes social responsibility very seriously. The social media-social marketing-social impact cascade is gaining traction, and product-innovation concepts striving for customer-focused meaning are moving to the macro-economic level, perhaps providing a template for, that’s right, a new meaning of business.

To be continued...