A blog about marketing, causes and a variety of topics in the “goodsphere”

Category Archives: Leadership

Ku Klux Klan, “Brand Doctor” and the Oklahoma Dust Bowl Crusader

Doctors are generally some of the most trusted people in America (#3 most trusted profession in a recent poll). They also tend to be some of the wealthiest Americans.

For the most part, we love our doctors. “Brand Doctor” works today. If a guy with a white coat & white teeth sells a product on TV, we’ll believe every word he says.

So it’s curious that “we the people” did not forcefully call on doctors & the powerful medical establishment to propose a viable solution for our 50 million uninsured people in the US over the past few years. Where were all the doctors in the debate over the uninsured? Surely they cared most about all the people left behind by our broken “big healthcare” system?

In the go-go 1920s, roughly 100 years before the latest round of healthcare debates, Dr. Michael Shadid cared.

Shadid was an industrious “foreign born” doctor who battled the Klan, racism and the medical establishment to help poor farmers gain access to quality health care in Dust Bowl Oklahoma. Dr. Shadid was a purpose driven doctor who bucked the system and dared to propose an alternative, cooperative business model in the face of traditional thinking.

Dr. Shadid’s book entitled Crusading Doctor highlights his struggle to start the first cooperative hospital in the US. It also shows just how hard the entrenched establishment will fight to keep the status quo. While reading the book, you’ll like be surprised to discover how ruthlessly and violently Shadid’s fellow doctors openly opposed and slandered him. Many of Shadid’s opponents focused on “what’s good for business” instead of “what’s good for poor, under served people.”

Crusading Doctor & Crusading Marketer
After observing the small community of Carter, Oklahoma build a thriving farming cooperative movement (cotton gins, grocery stores, etc) Dr. Shadid founded America’s first cooperative hospital in Elk City, Oklahoma (where I went to high school).

In 1929, Dr. Shadid’s alternative business plan looked something like this…he would organize 6,000 families who would buy a $50 share of stock with which to build and equip the hospital. Then, the community would pick a board of directors and each family would pay $25 per year (pre-payment plan) for their medical and surgical care.

Dr. Shadid set himself incredibly high targets in the beginning (6,000 members). So, he actually had to start the hospital on a discount system. By 1932, Shadid was able to apply the pre-payment plan. Getting to critical mass wasn’t easy, however. Dr. Shadid quickly became famous for using guerilla marketing tactics, word of mouth & CRM in order to gain enough members. He tirelessly promoted his cause, traveling across the country & lecturing on the benefits of preventative medicine and the cooperative model (a hospital owned by the patients).

Lessons from Dr. Shadid
1. Study Sociology, not just Technology: Dr. Shadid was a lifelong learner who kept up with new treatments and new technologies…but, he also kept up on the sociology and ethics of his profession. He was continuously interested in how his profession impacted people and society. This led him to better understand plight of people vs focusing on his own bottom line.
2. Purpose provides fuel in the face of extreme adversity: Dr. Shadid was very clear about his purpose; he wanted to provide quality health care at affordable rates for hard working, low-income farmers. Dr Shadid was slandered repeatedly as organized medical societies and their powerful allies tried to put him and the patient owned, cooperative hospital out of business year after year. He never wavered in the face of adversity, however, and he always put people and purpose out front.
3. Don’t Forget: Dr. Shadid continually remembered what it was like to live with hunger, poverty & lack of heatlh care, while growing up in an impoverished part of Syria. He remembered what it was like to lose patients in good, hard-working farm families. He didn’t forget these experiences & they fueled his desire to drive change.

What has happened to Dr. Shadid’s model?

As the NYT details in this article: It has survived. Shadid built a team of doctors who collaborated closely and were not paid based on how many procedures they performed. Today, this description fits the Mayo Clinic and the Cleveland Clinic as well as less-known groups around the country.

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Marketing and Military Metaphors

LONDON - APRIL 24:  Employees of the company U...Image by Getty Images via Daylife

If you start working in the marketing promotion and brand management space, you’ll quickly notice that a lot of the jargon sounds sort of “military-like.”  Experienced managers often talk about developing strategic targets/flanker strategies, launching campaigns & driving guerrilla marketing.

Military Mindsets

Al Ries and Jack Trout developed the warfare / marketing metaphor in their go-go 80s business book entitled Marketing Warfare.  The title perfectly fit the Cold War zeitgeist.  80s marketers likely connected with references to cola wars and burger wars, etc. after checking out screenings of Top Gun and reading Tom Clancy novels.

Corporate Mindsets

On the flip side, the dominate institution of our day (the corporation) has influenced military jargon and mindsets.  Intelligence services offer products & services and private security companies operate with corporate like efficiency.

Kinder, Gentler

By 2010, however, warfare fatigue seems to have set in with respect to military metaphors and business thought leadership.  Command-and-control brand management has come under fire as of late for being outdated and unable to cope with the new realities of the agile web.  Admittedly, in the new world of collaborative and open brands, top-down military references don’t really seem to fit.  Plus, in a day of bank bailouts and corporate greed, people don’t want to hear that they are being “targeted” by people who bizarrely seem to understand their preferences better than they do…

As Pres. Obama recently pointed out in a speech to the Naval Academy:  “After an era when so many institutions and individuals acted with such greed and recklessness, it is no wonder that our military remains the most trusted institution in the nation.” Obama went on to positively highlight what he called the “selflessness and service of all of the armed forces.”

Businesses and marketers have adopted a lot of operational military jargon over the years; it might be time to pick up on some on the values related jargon (selflessness and service) as well.

Peace.

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Defectors from the Inside the Chamber

What do Apple, Nike & PG&E have in common?  They all recently staged rare corporate defections from the US Chamber of Commerce.

Below is an excerpt from the PG&E press release

SAN FRANCISCO -(Dow Jones)- PG&E Corp. (PCG) said Tuesday it is leaving the U.S. Chamber of Commerce over objections to what its top executive called the chamber’s “extreme position on climate change.”

And here is an excerpt from Nike’s release (side note: Nike didn’t fully leave, but decided to step down from the board)

Nike believes US businesses must advocate for aggressive climate change legislation and that the United States needs to move rapidly into a sustainable economy to remain competitive and ensure continued economic growth.

As we’ve stated, we fundamentally disagree with the US Chamber of Commerce on the issue of climate change and their recent action challenging the EPA is inconsistent with our view that climate change is an issue in need of urgent action.

The Daily Kos weighed in on the defectors saying that they were bold and innovative…willing to carve out a new divide between the more innovative companies and the older, hard-line climate laggards.

This crucial announcement from PG&E is the beginning of a massive reframing, away from jobs vs. polar bears, and focusing on the growing divide within the business community: innovative and forward-looking companies that “get it” vs. old line extraction companies that cling to the past.

The NYT points out that this crack in the (normally) homogeneous US business community is a new signal that the fight over climate legislation is changing.  This time around we won’t see a repeat of the time-worn face off between greens and big business, a fight in which environmentalists are often outgunned in money and influence.

So Who’s Next?

Which company will drop out of this powerful, 3 Million strong US Chamber next?  And, will these new companies start a new type of business federation to compete with the US Chamber juggernaut?

If Apple wanted to lead something like this I bet there would be followers…

Copenhagen’s Coming Soon

Beyond the recent Chamber defectors, encouragingly, there are a lot of big, innovative companies that are pushing government to do more on climate change.

In a dramatic shift since the Kyoto treaty was signed in 1997, 500 of the world’s leading global businesses recently joined together to endorse the Copenhagen Communiqué on Climate Change by signing a two page manifesto.

The Prince of Wales’s Corporate Leaders’ Group on Climate Change recently pulled together some of the world’s biggest companies for the Communiqué. The two page document is being billed as a strong call from the international business community for a stronger international framework ahead of the UN negotiations on climate change this December in Copenhagen.

The Communiqué is very encouraging and leadership from global companies on climate change is also very encouraging…who would have thought–5 or 10 years ago–that big, global companies could pull together voluntarily to call for a tougher stance on Climate Change?

We need powerful global business leaders to stand up and say that they are ready to take on one of the  defining issues of our generation.

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Sloppy Greed: Leadership lessons from the death of great companies

You wanted growth — faster. We want to slow down Umair Haque, Gen M Manifesto

In the latest book “How the Mighty Fall” Jim Collins delves into the reasons why promising organizations and countries fall.  Collins outlines one stage of decline that particularly stands out for me, in light of our current economic plight–the “undisciplined pursuit of more”.  Below are the key stages of decline that an organization or nation experiences before the mighty fall, according to the book.

Stage 1: Hubris Born of Success
Stage 2: Undisciplined Pursuit of More
Stage 3: Denial of Risk and Peril
Stage 4: Grasping for Salvation
Stage 5: Capitulation to Irrelevance or Death

Once leaders start believing that their organization’s success is due primarily to their own personal efforts and smart moves (stage 1) the slippery slope to irrelevance gets steep in a hurry and stage 2 begins–the undisciplined pursuit of more.

Sloppy Greed:

Greed is a natural outgrowth of hubris.  As people around an organization become enamored with their own successes, inevitably they must prove themselves again in order to meet shareholder demands.  And, believing they can do anything, they tend to overreach in an undisciplined way to prove their mettle once more.

What is interesting about stage 2, as Collins points out, is that most people would think that stage 2 in the decline of a company would stem from complacency or laziness.  This is not the case.  Instead, Sloppy Greed most often leads to stages 3 & 4.

Sloppy Greed manifests itself in calls for more scale, more growth, more acclaim, more & more of whatever, with a complete lack of discipline.  Companies in Stage 2 stray from their sense of a larger purpose.

As I read the book, one example from Collins that was particularly poignant came from Merck. In 1995, Merck decided to pursue a “growth at all costs” strategy–calling out growth as its number one organizational objective.  Lusting for Über growth, Merck bet on Vioxx without fully investigating potentially worrisome data on cardiovascular risk.  Merck ultimately pulled Vioxx , but the incident led to a huge drop in market cap for the company. Merck learned that when you are willing to grow at almost any cost, you tend to look past your original purpose or reason for being.

Growth of a different sort

Later in the book, Collins observes “The greatest leaders do seek growth - growth in performance, growth in distinctive impact, growth in creativity, growth in people - but they do not succumb to growth that undermines long-term value. And they certainly do not confuse growth with excellence. Big does not equal great, and great does not equal big.

Notice that Collins never mentions top line or bottom line growth in the above paragraph.  Instead, he calls for companies to think about growth differently, focusing on distinctive impact, people, performance and creativity.  By focusing on these areas in a disciplined way, the top & bottom lines should both benefit.

At the individual level:

The undisciplined pursuit of more can be applied to the individual level as well.  Many of us have probably experienced a time when we fell victim to stage #2.  Inevitably, this starts after we begin “eating our own dog food” (stage #1) without ever pausing to consider the purpose or rationale behind our actions.  As always, humility is needed in big quantities to avoid reaching beyond our capacities and falling into decline.  Being overly ambitious is simply not balanced.

Check out the book & let me know what you think.

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The End of Corporate Responsibility and social media failures (+ other things)

Lots going on, so here are a few links to get your Tues. juices flowing…

Capitalists Hail the End of Corporate Responsibility:  Jeffrey Hollander is an inspiring guy.  He runs the #1 Good Company on Earth and has written a very good book (which I am reading now) entitled What Matters Most.  In Capitalists Hail the End of Corporate Responsibility, Jeff discusses a semi-rant against the Hot Air of CSR by Financial Times author Stefan Stern (by the way, FT just completed a whole week on the Future of Capitalism).

Jeff says that Stefan has got it backwards.   He notes: “If anything, the recession has shown that in these tough times, the surest way to make money is to be responsible to all of your constituencies — employees, customers, suppliers, and society itself. Do this, and it’s far more likely that shareholders will benefit”.  I agree with Jeff (see this post).  What do you think about all of this?

Failures of Social Media:  Rob Horning puts together 5 key points which, for him, make “mediated friendship distinctive and unstable”.  Rob pulls his data from Danah Boyd’s dissertation called:  Taken Out of Context, American Teen Sociality in Networked Publics.   Though I have thoroughly enjoyed social media over the past couple of years, I think it always good to cast a critical eye on the space from time to time.

In Extremis Leadership:  Tom Kolditz has written an interesting new book promoted by the Harvard Bus. Review on Leadership in Extreme times.  One of the key take outs in the book revolves around how strong leaders in Extreme times are focused on continuous learning.  Tom is a Colonel from West Point, so you can bet your boots has some deep insights into extreme situations…go to this site and take the online assessment to determine where your leadership strengths lie.


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Tribes & Movements. Everyone is a leader now according to Seth Godin

What tribes are you a part of?  Do you belong to several tribes on Facebook?  At work?  And why do you join these “tribes”?  Most of us probably don’t think of our social groups as “tribes”, but Seth Godin–ever the prolific marketing writer–convinces us in Tribes:  We need you to lead us that we should “think native” and examine tribal dynamics deeper to learn how to become stronger leaders, marketers & change agents.

So, I asked myself the question I am asking you above.  Why do I join certain groups (tribes)?  As I logically thought of my own group behavior, I surmised that I join certain groups because I believe in the core ideas of that group or that I am searching for connection with like minded people.  This seems to be pretty close to Seth Godin’s description of a tribe: a group of people connected to one another, connected to a leader, and connected to an idea.

MyOwnTribe.com?

There are tribes everywhere.  Every one of these tribes yearns for leadership.  So why should we lead our own tribes now? (not tomorrow, not when we have more industry knowledge, not when our kids get out of the house, etc.)  According to Seth: 1.  For the first time ever, everyone is expected to lead in the workplace. 2.  The structure of today’s workplace means it is easier than ever to change things.  3.  The marketplace rewards change agents who create phenomenal goods & services.  4. Its engaging, thrilling fulfilling, profitable 5.  There are people out there waiting for you to connect them and help them become their best.

I really like Seth’s emphasis on leadership in his new book.  Seth calls everyone to develop their leadership & vision.  He does not just focus on the cool new web tools (Facebook, Meetup, LinkedIn, Twitter, MySpace, etc.) that make it easier than ever to create movements and connect with your tribe in the internet age.

If we are interested in creating tribes, we need to stand for something.  And that “something” needs to be clear and compel others to connect.  If we send out contradictory messages or people aren’t really clear on what our intended key messages and reasons for existing are, we won’t be very successful.

Tribes are not like crowds…

A few weeks back I wrote about crowds and crowdsoucing.  Crowds are not tribes because crowds are missing strong leaders and communication channels. In a recent promo for the Tribes book, Seth used an example from Whole Foods to make this point.  Seth criticizes Whole Foods because they have (so far) failed to provide consumers with the chance to connect & communicate with each other.  Whole Foods does not provide meet ups in stores or online communities, or anything else. Seth believes that Whole Foods has only created “amusement parks for food”.  Net:  According to Seth, Whole Foods has served a crowd, but not developed a tribe.  While I agree in general with this example, I am not sure how many people want to connect deeper with a place where they basically only pick up their groceries (even if they are “sexy groceries”).

I will leave you with a simple nugget from Seth in Tribes:  “The secret of leadership is simple: Do what you believe in. Paint a picture of the future. Go there. People will follow.”

P.S. If you want to know how Seth Godin has built-up his marketing, business and entrepreneur tribe across his career, here is a good article from BusinessWeek.

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