March 21, 2007

edelman talk

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Edel­man
have kindly asked me to come to their Lon­don office today and give a talk about blogs and post-Cluetrain rea­lity for one of their clients. Here are my notes:
SETUP:
1. I’m not here to tell you about your busi­ness. You already know it’s a jun­gle out there. You already how hard it is to fight out there, just to earn a few pen­nies on the dollar. You don’t need me remin­ding you of that. What I would like to do, howe­ver, is pass along what I’ve lear­ned from blog­ging, and explain where I think it can help your cause.
2. To me, The Clue­train is the most impor­tant book about the inter­net ever writ­ten. Why? Because it was the first book that tal­ked about the inter­net the way it REALLY is– i.e. peo­ple tal­king– as oppo­sed to the way busi­ness and the media pre­tend it is– i.e. peo­ple buying.

A power­ful glo­bal con­ver­sa­tion has begun. Through the Inter­net, peo­ple are dis­co­ve­ring and inven­ting new ways to share rele­vant know­ledge with blin­ding speed. As a direct result, mar­kets are get­ting smar­ter — and get­ting smar­ter fas­ter than most companies.

I’ll be blunt: In mar­ke­ting terms, I don’t think anyone can truly unders­tand the inter­net until AFTER they’ve read The Clue­train. Highly recom­men­ded.
3. Nobody cares about you. That last sen­tence terri­fies a lot of cor­po­rate types. We grew up thin­king cor­po­ra­tions and the media was all-powerful. That all a guy in a suit nee­ded to do was snap his fin­gers, buy some TV com­mer­cials, and sud­denly the mas­ses would line up in dro­ves, beg­ging to buy your pro­duct. Seth Godin calls this old world the “TV-Industrial Com­plex”. Those days are over. We’ve got too many choi­ces. We are over-programmed and over­sup­plied with great choi­ces already. In the future, the com­pa­nies that will win are those that can rise above the clut­ter. To rise above the clut­ter you have to offer something remar­ka­ble; something worth tal­king about. A great, award-winning TV ad cam­paign for a lousy pro­duct won’t cut it any more. Peo­ple have got­ten too smart. And like The Clue­train says, thanks to the inter­net, they’re tal­king to each other.
4. You’ve already done “effi­cient”. We’re living in a post-efficiency world now. We already know how to make things bet­ter, chea­per and fas­ter than the pre­vious gene­ra­tion. We already know how to squeeze our sup­pliers till the pips squeak. We already know how to build sys­tems that maxi­mize pro­fits at every stage of the pro­duc­tion and selling pro­cess. We’re already outsour­cing our stuff to China, and so is ever­yone else. Been there. Done that. So where does the growth need to come from? What needs to hap­pen, in order to save your job?
THESIS:
5. The growth will come, I believe, not by yet more inc­rea­sed effi­cien­cies, but by huma­ni­fi­ca­tion. For exam­ple, take two well-known air­li­nes. They both per­form a use­ful ser­vice. They both deli­ver value. They both cost about the same to fly to New York or Hong Kong. Both have nice Boeings and Air­bu­ses. Both serve pea­nuts and drinks. Both serve “air­line food”. Both use the same air­ports. But one air­line has friendly peo­ple wor­king for them, the other air­line has surly peo­ple wor­king for them. One air­line has a sense of fun and adven­ture about it, one has a tired, jaded business-commuter vibe about it. Guess which one takes the human dimen­sion of their busi­ness more seriously than the other? Guess which one still will be around in twenty years? Guess which one will lose billions of dollars worth of sha­rehol­der value over the next twenty years? What para­llels do you see in your own industry? In your own com­pany?
6. If cor­po­rate blogs work, it’s because they help huma­nify the com­pany. I wrote about this ear­lier in an article I called “The Porous Mem­brane”. To paraph­rase: Ideally, you want the con­ver­sa­tion bet­ween cus­to­mers [the exter­nal mar­ket] to be as iden­ti­cal as the con­ver­sa­tion bet­ween your­sel­ves [the inter­nal mar­ket]. The things that your cus­to­mer is pas­sio­nate about, you should also be pas­sio­nate about. This we call “align­ment”. A good exam­ple would be Apple. The peo­ple at Apple think the iPod is cool, and so do their cus­to­mers. They are alig­ned.
When you are no lon­ger alig­ned with your cus­to­mers is when the com­pany starts get­ting into trou­ble. When you start saying your gizmo is great and your cus­to­mers are telling every­body it sucks, then you have serious misa­lign­ment.
So how do you keep misa­lign­ment from hap­pe­ning?
The ans­wer lies the cul­tu­ral mem­brane that sepa­ra­tes you from them. The more porous the mem­brane, the easier it is for con­ver­sa­tions bet­ween you and them, the inter­nal and exter­nal, to hap­pen. The easier for the con­ver­sa­tions on both sides to adjust to the other, to become like the other.
And nothing pokes holes in the mem­brane bet­ter than blog­ging.
7. Blog­ging is not about reaching a mass audience. Blog­ging is not about crea­ting yet another sales chan­nel. Blog­ging is about allo­wing “The Smar­ter Con­ver­sa­tion” to hap­pen.
Why do some com­pa­nies lose, while other com­pa­nies win? Because the lat­ter has a smar­ter “con­ver­sa­tion” with its cus­to­mers. Pret-A-Manger has a smar­ter con­ver­sa­tion about food than Bur­ger King. Starbuck’s came along 20 years ago and began a smar­ter con­ver­sa­tion about cof­fee with millions of peo­ple within a very short space of time. Wal-Mart’s mas­sive growth star­ted from a smar­ter con­ver­sa­tion about pri­ces. Savile Row tai­lor, Tho­mas Mahon came along and, with his blog, had a smar­ter con­ver­sa­tion about $4000 English bes­poke suits.
Blogs allow you to cheaply and quickly begin a smar­ter con­ver­sa­tion. And once you get it going, that con­ver­sa­tion starts blee­ding out into all other areas of your busi­ness– inc­lu­ding adver­ti­sing, PR and cor­po­rate com­mu­ni­ca­tions.
8. Having a “Smar­ter Con­ver­sa­tion” is not an inte­llec­tual deci­sion. It’s a moral deci­sion.
9. Just because the con­ver­sa­tion star­ted out smart, doesn’t mean it sta­yed that way. You have to keep evol­ving your con­ver­sa­tion to keep it inte­res­ting. I always tell peo­ple, “Blogs don’t write them­sel­ves.” This is har­dest part of blog­ging: kee­ping the mojo going.
WRAP-UP:
10. A fairly com­prehen­sive list of cor­po­rate blogs can be found here on Wiki­pe­dia. [UPDATE: The Wiki­pe­dia list seems to have been taken down; but thank­fully there’s another list here.] For exam­ple: even though I know very little about Sun Mic­rosys­tems, I read their CEO, Jonathan Schwartz’s blog pretty regu­larly. So now I have a pretty posi­tive image of Sun. So the trick then beco­mes, how does one take this little piece of gene­ra­ted good­will, and turn it into something big­ger? That ans­wer goes back to the “Smar­ter Con­ver­sa­tion”. Blogs train you to speak to peo­ple the way they should be spo­ken to, simply because you won’t get a res­ponse other­wise. And once you learn that, you can start appl­ying it to all aspects of your busi­nes­ses.
11. Blogs are very cul­tu­rally dis­rup­tive– more so than peo­ple rea­lize. So the ques­tion you have to ask your­self is, what part of your busi­ness are you trying to dis­rupt? Because you have to be ready for it.
12. “Con­ver­sa­tion” is just a metaphor. Then again, no it’s not.
13. Here are some links to give you some food for thought:

A. Robert Scoble’s Cor­po­rate Blog Mani­festo. Requi­red rea­ding.
B. Jeff Jar­vis made blog­ging his­tory when he blog­ged nega­ti­vely about Dell Com­pu­ters. Once the dust sett­led Dell star­ted a blog of their own. Smart move.
C. Mark Cuban’s Blog Mave­rick is a text­book case of how a CEO ought to blog.
D. Microsoft’s Steve Clay­ton is as good an exam­ple of a mid-level emplo­yee blog­ging on his company’s behalf as any I know. And to see a big list of Mic­ro­soft blog­gers, go here.
E. Read everything Doc Searls wri­tes. Shut up and just do it; the man’s a genius [Doc was one of the co-authors of The Clue­train. I’m also a big fan of another Clue­train co-author, David Wein­ber­ger, who also con­sults for Edelman].

14. Remem­ber, our inter­nal dri­ves were hard­wi­red into us long before money was inven­ted. So we’re not doing it just for the money. We’re really doing it to find mea­ning. Just my opi­nion.
15. Thoughts from my day job: “What’s dri­ving inno­va­tion and sales on our end is not a tech­no­lo­gi­cal issue, it’s a cul­tu­ral issue. Get the right cul­ture going, and the tech looks after itself.“
16. I will leave you with the words of NYU Pro­fes­sor, Clay Shirky: “So for­get about blogs and blog­gers and blog­ging and focus on this– the cost and dif­fi­culty of publishing abso­lu­tely anything, by anyone, into a glo­bal medium, just got a whole lot lower. And the effects of that inc­rea­sed pool of poten­tial pro­du­cers is going to be vast.”

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34 Responses to “edelman talk”

  1. Al says:

    As usual Hugh, suc­cinct and smart I just hope they get it, it takes time for these things to sink in.
    regards
    Al

  2. andhapp says:

    Very inte­res­ting and informative…I am a novice blog­ger and this was extre­mely helpful…

  3. Harry Joiner says:

    Wow. Well said. #5 could have been a stand-alone post. That one takes a minute just to sink in.

  4. jeff says:

    Thank you for this.

  5. daland says:

    One word– Wow.

  6. tom says:

    fan­tas­tic, thanks.
    btw, THESIS num­bers are 5, 6, 5, 6, 7

  7. hugh macleod says:

    Thanks, Tom. Mea culpa. Fixed.
    Thanks for the kind words, Every­body.
    I’m now at a Starbuck’s just down the road from the offi­ces. The talk starts in an hour… get­ting the cof­fee dose in etc.

  8. Gree­tings from sunny Miami!
    This totally rocks! In some ways, very much in line with what we are doing at 411 although I never quite thought about it from a mar­ke­ting pers­pec­tive.
    Just one little oops … link to hugh­train is mis­sing www.

  9. Alex Grech says:

    Cle­ver, suc­cinct, fun, visual. Most impor­tant of all.. memo­ra­ble. Thank you for this. And for the rest.

  10. Nancy says:

    Con­ver­sa­tion is the key. Thanks for a great post.

  11. If I were Bri­tish, I’d say “bri­lliant” (at least that’s what I think I would say…)

  12. Shaun says:

    This was right on the dot. Thank you for the sim­ple expla­na­tion of it. I haven’t heard of the book The Clue Train so I will be get­ting that today.

  13. I don’t need any­more blog mar­ke­ting!!! Goo­gle now offers
    Cost Per Action

  14. Jack says:

    +1 for the Clue­train Manifesto…that book chan­ged my life!

  15. Matt S. says:

    Hugh, what an enligh­te­ning blog post. I was on Edelman’s DC Online Advo­cacy as an Intern, and am now making a push for the agency I work for now to start con­si­de­ring blog­ging and moni­to­ring new media, so your words will defi­ni­tely help.
    Also, I couldn’t agree more with your air­line ana­logy. Prior to finishing my stu­dies at George Mason Uni­ver­sity, I wor­ked for Jet­Blue Air­ways. Their ser­vice is what sets them apart from the rest – yes, even after their Valentine’s Day issue – and their “huma­nis­tic” approach will lead them into the future, while the others are left in his­tory. KUDOS to you Hugh.
    Check out our blog some­time: whiteandpartners.blogspot.com

  16. Stephen says:

    This is the kind of post that ins­pi­red me to start upon my own new track and “escape from the cubicle”. I encou­rage ever­yone I meet to read this blog.
    I need to print this and carry it around.

  17. RKR says:

    I will con­ti­nue batt­ling the bour­geois with these ins­truc­tions. If there are any small vic­to­ries, I will name you as “king” of my suc­ces­ses. (Knee­ling, head lowe­red, right fist pla­ced upon heart)
    Hmmm…I think I may be onto something. Peo­ple who have bene­fi­ted by your wis­dom could cele­brate “The Feast of Mac­Leod”. Sounds Catho­lic with a Pagan Twist good time (and not impossible!)

  18. gorgeoux says:

    WOW, indeed. Exactly how I think and feel, only far bet­ter arti­cu­la­ted. Many thanks! Now let’s hope my clients allow it to sink in… some­day soon.

  19. Al Nye says:

    Great advice … wish I could have heard the talk.
    Al

  20. Nice job again Hugh Ins­pi­red this from e at makehope
    Hugh Mac­leod at gaping­void read my mind. I know my but­tons of hope pro­ject is going to be a win­ner — now I have a word to desc­ribe my instinct…

  21. Natalie says:

    Hugh, ‘huma­nify’ and ‘huma­ni­fi­ca­tion; are not words.
    Maybe you were loo­king for ‘huma­nize’ and ‘huma­ni­za­tion’
    Just a though.
    The rest is pure gold.

  22. Jim Kukral says:

    Wow, there’s 20 sepa­rate blog entries/learning points or more just on this page. Thanks for wri­ting this.

  23. Sweet post– I have to link to this on my site.
    P.S. Let’s hope they don’t get it too quick, so we can stay in busi­ness as blog con­sul­tants a little lon­ger. 8)

  24. Brett says:

    Outs­tan­ding notes — I’m overwhel­med by it, and I thought I unders­tood it. Would’ve loved to see how the crowd was reacting.

  25. Marc Lehmann says:

    i was just saying i’m tired of posts about blog­ging and con­ver­sa­tions bet­ween com­pa­nies and consumers…then you slap­ped me in the face with this crac­ker (as we say downunder)…loved it

  26. Dave Donohue says:

    Hugh,
    Thanks very much for this. It was enor­mously help­ful. If you find your­self in San Fran­cisco or NYC any­time soon, I would love to arrange something similar.

  27. This is one of those posts that make you stop what you are doing on the spot, and rethink. Power­ful.
    I added your car­toon wid­get and orde­red blog cards, can’t wait to them them.
    Thanks

  28. John Dodds says:

    @ nata­lie
    But this is hughmanification!

  29. Hmmmm… I am thin­king that’s glue indu­ced. There’s a hint of blur that just would not hap­pen with LSD. Of course, some could argue that its shear ridi­cu­lous­ness is remi­nis­cent of pot.
    Excuse me; “Huma­ni­fi­ca­tion” is the rea­li­za­tion that ever­yone who’s ever lived took a dump once a day and all our efforts to rise above our base com­mon nature has been vanity.
    Pathe­tic and sad.
    Doc Searls, Jeff Jar­vis, Robert Sco­ble, Mark Cuban? C’mon. They are the high priests of the Cult of the Ama­teur http://tinyurl.com/ywgnvt .
     – Amanda

  30. Chris Reed says:

    I’ll be enjo­ying a bottle of good but cheap wine (thanks Threshers) while rea­ding the Clue Train (thanks Hugh), and encou­ra­ging my collea­gues to read this post. Nice one — spot on, as ever.

  31. hugh macleod says:

    Thanks for the kinds words, Every­body…
    Nata­lie,
    “Hugh, ‘huma­nify’ and ‘huma­ni­fi­ca­tion; are not words.“
    Heh. They are now ;-)

  32. Ian says:

    Here’s a point of view: Blogs are like talk­back radio. The easier it is for peo­ple to reach a mass audience, the quic­ker you come to rea­lise that very few have anything worthwhile to say.

  33. […] Hugh Mac­Leod of gaping­void gives a talk to Edel­man about the state of blog­ging these days. Spot on. Link […]