California’s Golden Opportunity – #innovation #China

 

Dire budgetary news from California has become as tedious and predictable as the latest on its educational failings, tumbling from the top ranks of American higher education to way down the rankings. We know part of the reason, which is tax initiatives that ave crimped the state’s ability to undergird what were once world-leading educational initiatives. There are of course other reasons, which include dumb teacher unions and state representatives unable to offer leadership.

But there is a wider point to be noted. California stands ready to serve as the linchpin of the emerging global Pacific order; the U.S. representative that offers the fulcrum to the Pacific states as the world’s leading center of entrepreneurship. Is this happening?

Silicon Valley, earth’s chief creative organ, is as detached from the Pacific as it is from the continental body of the United States. Its denizens need to discover interest and enthusiasm for both the polity of their nation and the opportunities of their ocean if they are to take the lead in the most consequent generation that earth has yet seen.

 

 

Huge New Shortfall Predicted in California Budget – NYTimes.com.

#SocialEntrepreneurship, #CSR, and the #Imagination

I was delighted to join the Ideation conference in Chicago earlier this week, and can do no better than link with @tonyshen’s 22 learnings which sum up the impact of a series of terrific presentations from some of the most brilliant people in the social enterprise scene and its environs (link below). Charles Lee and my friend J. R Kerr curated a winner.

What fascinates me is how many moving parts we have in the values/business arena. Social enterprise (SE) itself covers a range of nonprofit and profit-seeking efforts in which social good is the goal, or a substantive part thereof. Then we have corporate social responsibility (CSR). Here our point of departure is within traditional companies, who seek to deliver social good (not my favorite expression, but let’s use it anyway) either to assuage the conscience and meet the charitable interests of the company/founder, or to spruce their brand, or at a more fundamental level align mission with other than directly profitable goals; or, as in Phase 3, to build “shared value,” as Michael Porter has called it, in which these goals are in the long term precisely aligned. A more modest but similar case was made in the report commissioned from McKinsey by the Committee for Encouraging Corporate Philanthropy, which despite its somewhat Victorian name was founded by Paul Newman and operates the key network on CSR within the Fortune 500 CEOs. (Pursue that at corporatephilanthropy.org – the report is a great read.)

The logic of “shared value,” as I pointed out in a commentary for the U.S. Chamber of Commerce, is the end of CSR. No more “triple bottom line,” just a bottom line. Porter’s proposal has been seen as outlandishly optimistic by some, but his essay offers a thought-piece that I believe we need to wrestle with as we look ahead at how sustainable value will be built in the emerging social-cultural-economic matrix of C21. Ironically, the most prominent funding of social good, by far, is coming from the Gates-Buffet-Soros old school of Carnegie-style philanthropy – giving away the riches won through business. So all three types of are operating in parallel.

But there’s a third category that needs to be noted in this meta-conversation: the need for innovative financing and governance models to be devised in response to the vastly innovative technological (and social) developments of the digital revolution.

Jimmy Wales’ Wikipedia offers (so far as I am aware) the only major project of the digital era that has struck out in another direction than IPO-dom. We need more. Google should have. Facebook should. The pressures of the market are not necessarily the ideal environment for the development of visionary, values-driven efforts. As Mark Zuckerberg wears his hoodie to Wall Street, we may well wonder why something as radically innovative as Facebook is beholden to the funding and governance system that sustains the enterprises of the “old economy.” That is, can innovation not run right through the system? Ahem, alignment?

Seems to me that we have here 3 more silos: social enterprise in various shapes; the three-fold CSR package; and innovative, generally digitally-driven, companies. We need above all a meta-convo that will bring these efforts round one table to focus these brilliant, diverse, projects for social good – and, in most cases, also for profitability.

The future? Moore’s Law, social media, globalization – these and other inexorable forces are re-shaping the landscape. It would be fun to work on some scenarios for 10 years’ time.

 

My take on Michael Porter’s proposal on Shared Value: http://bclc.uschamber.com/blog/2011-06-30/one-our-greatest-business-gurus-redefines-capitalism-perhaps

 

22 Hacks & Perspectives for Social Entrepreneurs | MOVEMENT 121.

#Hashtags and the #Twitter Power of Simplicity

Someone famous once said (was it Einstein) that we must seek not the simplicity that lies on the nearside of complexity, but on the far side. This isn’t a comment on our political malaise (though it could be) but on the best example the digital world has yet produced of the astonishing power that lies on that desideratum of a far side. And it’s called . . . Twitter.

I have written about this before, and I shall again. Here is the before:

http://nigelcameron.wordpress.com/future/why-twitter-matters/

The hashtag, whose potential and practical application is laid out in this brilliant post, just exemplifies the principle: utter simplicity (say, 1000 times as simple as Facebook) that enables us to engage the exponential explosion in data of all kinds and knowledge in particular. Twitter offers a Reciprocal Knowledge Engine.

And as @rorysutherland recently was quoted as saying, this could mean it is worth a lot more the Facebook. http://viggoandersen.visibli.com/share/3C4fe4

 

Twitter Hashtags 101: Complete Guide to Discovery and Power | Internet Media Labs Blog.

Why Spaces, Places, Matter – and Questions #SOBCon #risk #strategy

I’ve just emerged from SOBCon in its hometown, Chicago, with gratitude to @LizStrauss for the invitation and her colleague Terry @Starbucker St Marie.

Some quick thoughts after a remarkable weekend as the long tail of posts, tweets, texts, continues to flow. More thoughts may follow.

SOBCon is a conference like no other – in which infinite effort has been spent on process as well as content; a fulfillment, at one level, of the generally frustrated vision of unconferences to draw on everyone and avoid the fallacies of schooling; a pudding rich but never quite over-egged; a place, a space, a gathering of people decidedly in community. As I just shared with a new friend, I’m not sure if I spent the weekend being remade or beaten up. OK, you get the picture.

Here just one comment, about SOBCon as a space. The lush, deeply engaging, very personal presentations I leave for the moment to others to discuss, though they make sense only inn the context of the space. (Check the #SOBCon hashtag to get a whiff.)

But this. SOBCon is a place. A space. With rich features evident to newbies as they walk in. The air has been specially treated. The food infused with secret sauce. A magical kingdom, in which the quality of relationships new and old, and – because this is always how it flows in our human community – the character and depth of the communication, are heightened.

To those for whom conferencing is all in a week’s work, including some of the finer efforts, it is always striking when a space is created in which persons and ideas can actually engage; strangers can be open with each other; bonds can spring up almost as fast as cards are exchanged. Well, this weekend in Chicago that was true to a high degree. What’s especially interesting with SOBCon is that this is not the result of its being carried on in secret. I am no great enthusiast for the “Chatham House Rule” that is sometimes used to encourage candor and honesty – which basically renders an event and its participants off the record. SOBCon was streamed. I know because I got message from people saying they could see me in the crowd. The on/off the record approach has value in enabling officials to be interesting and remain employed. It has little impact on the quality of the engagement. Conversely, there can be engagement of a special quality without its illusions.

That’s why in our work at C-PET we have placed much effort and emphasis on the quality of the community we bring together to address the great questions of tomorrow and today. These are not communities of old friends, though they are enriched by such relationships scattered through them. They include many who are strangers. And what is said in public is not private. But the cultivated space means that trust, even between strangers, is set high. So in conversations public and private there is candor. And, as well we know, when one person is candid, shares personally, confesses challenges and discusses defeats, the resonance is potent and the character of the conversation infectious.

At SOBCon this goal of, shall we say, a cultivated public/private inter-personal space for ideas – was achieved to a high degree, spurred by the fact many participants had been SOBConners before, and the social setting over several days – which went all the way to karaoke (some pics from that are in the tweetstream!).

Our business and policy worlds are full of answers. What we need most are spaces in which we can pose questions. Questions can only be properly posed when the space is right. And while this has always been true, as Moore’s Law drives exponential technological change and human events move at a pace faster than we have ever known the questions become more important, and the need for a space within which we can gather to consider them more pressing.

So huzzah to Liz and Terry, and the SOBCon community. As I  move back and forth between the worlds of policy and business I know there is nothing we need more.

 

 

Chicago 2012 Program | SOBCon.

#Bubble Talk – and the problem of #disruption – and Life in the #Kink

Henry Blodget has just posted a slide deck detailing start-up financing and arguing against the Bubble hypothesis. Here it is:

http://www.businessinsider.com/state-of-startups-2012-5?op=1

Fair enough.

But as I have argued before, there is a core problem attaching to the mega-brands and, of course, on all our minds, at the moment, Facebook. Which is that disruption is the principle – not the replacement of yesteryear’s blue-chips with tomorrow’s. Sorry, I tend to giggle when I hear smart folk discussing when Facebook will hit X billion. And I guffawed last year as IBM celebrated its centenary and the blogosphere asked the question: What great companies will be around in 100 years’ time? Someone needs to go Google “exponential.”

Point is that as we look back we witness disruptive change at expo speed. Looking ahead? We smooth the curve. We live in the kink. If you like, here’s a definition of the present: Life in the kink. Here’s what I wrote a year ago. I’m sticking by my story.

http://nigelcameron.wordpress.com/2011/04/25/where-the-past-meets-the-future-life-in-the-cosmic-kink

#Digital Imperatives? #CMO

What astonishes me is that “digital” is seen as some sort of novelty. It’s been the core of our communications and the driver of business for nearly a generation. Bizarrely, it still looks like tomorrow. It’s today. Um, yesterday.

So: What we need is integration to the degree that digital/social is seen as the baseline like the USPS.

Of course, that entails leadership that will make the point. Mark Fidelman’s HBR blog polling Fortune 250 CIO’s was not encouraging – 4 had blogs, 25 were on Twitter. It would be interesting to know more about the personal digital engagement of these three digital leaders. Digital/social, as I keep saying, has to be personal. Like saying sorry, you can’t hire someone to do it for you.

 

 

 

 

How to Deliver With Digital: 8 Imperatives for CMOs – Velocidi.

Placing a price on research; #HBR blog on #innovation and the long term . . . .

Anne Marie Knott from Wash U biz school raises briefly a profound question: how to maintain a major R and D budget when returns are graded quarterly and markets fluctuate by the second. Which always makes me realize how much better, in fact, is our corporate decision-making than it really should be. Out there is one alternative universe in which is really is the current stock price and the next quarterly report that shape every decision.

I’ve written elsewhere that, as it happens, the principal-agent problem (both here and also in the political realm) ends up helping to mitigate short-termism, since executives (like pols) want careers, and careers require reputations for long-term effectiveness. There are other reasons too, the most legitimate of which lie in the minds of long-term investors (of whom there are still a few).

The point Anne Marie Knott makes tellingly here is that what she terms the research quotient (RQ, a way of measuring research commitment/effectiveness) offers a different slant on capitalization. My somewhat broader point would be that the market needs to find ways to place a more reliable value on both such balance sheet commitments and the willingness of the executive team to take short-term hits for long-term value. That might involve polygraphs in the C Suite. It certainly (sigh, don’t we know) involves coming up with salary and bonus structures that deliver what is needed rather than what gluttonous execs feel is their desert for a good day’s work. This may seem like rocket science, but as Elon Musk is demonstrating, rocket science isn’t necessarily, well, rocket science. And the growing shareholder revolt on executive remuneration, reaching most recently to Barclays and now very much a mainstream effort, can’t fail to help.

At the core, it’s all about the long term. And the fact that as change comes faster innovation becomes both more necessary and more risky is driving a very different kind of corporate culture from that to which big companies used to aspire.

 

 

Don’t Cripple Innovation for the Sake of This Quarter’s Numbers – Anne Marie Knott – Harvard Business Review.

Saving the net, one way and another and another

“Prove It or Lose It”

I spent much of Sunday afternoon with Gunther Sonnenfeld (@goonth) in Santa Monica, and am delighted to read and recommend his rumination that picks up our conversation and takes it a lot further.

Yesterday was spent crossing the continent, and lunchtime today I was in DC at the Aspen Institute for its launch of a benchmark report on keeping the internet free by continuing the model of multi–stakeholder governance – and keeping it out of the hands of the ITU (the global telecoms regulator run by reps of every nation). Here’s the report: aspeninstitute.org/idea.

It would be totally old economy to speak of bottom-up versus top-down approaches to saving, shaping, working with and within, the internet. But just as we need to cultivate a multi-stakeholder approach to governance (top-down but from, as it were, a bottom-driven top), so in our creative engagement with the net we should be driven by analogical approaches that do not seek to replicate the IRL/analog online but grasp its extraordinary promise to refashion the goods and services that address our wants and needs in a manner that increasingly transcends and re-states them.

It’s when national leaders and those who shape capital markets begin to grasp that point that the economic argument for the net’s freedom will take root. And, just perhaps, that the old argument that we need political freedom in order to have successful economic activity – an argument that China has shown to be naive, like so many western nostrums – will be seen to return in a new and altogether more sophisticated form.

 

 

 

Our Brands, Ourselves

Brands Under Pressure – The Brand Lives in the Employees’ Voice | Networking Exchange Blog.

Cheryl Burgess’ (@ckburgess) timely discussion of humanizing brands in the voices and persons of employees looks to the Apple “genius bar” as a prime example. I’d assumed it was a reverse riff on Best Buy’s longstanding Geek Squad (not sure if they still use the somewhat off-color accoutrements it used to have – “we can’t get dates” et al.). They both seem to be working, even if Apple’s lacks quite the humor. But Apple has always taken itself rather desperately seriously (that’s another topic).

Never before have frontline representatives been so significant and, often as not, problematic. I’m thinking of airlines, and United in particular, and the very mixed experiences we have at the hands of the motley crews who combine their theoretical safety role with serving us meaner portions, less often, and often as not without much grace. (I had 2 out of 2 rude attendants on a flight yesterday, and I was in first . . . .)

Getting some sort of alignment between the image the people in corporate HQ are trying to present (ahem, the smiling Smisek greeting us on every flight) and the IRL people who follow has never been simple – and has become the hallmark of success for brands who succeed (GEICO’s famous telephone manner – I have in 20 years never had a bad experience with them).

The option here is to go further – to seek to co-opt the voice of those on the team, not simply have them parrot successfully a voiceover from marketing. As brands get weaker for many reasons (only one of which is the click that can send us to the competition) this offers the strongest incentive to build human organizations in which every representative of the company truly, organically, shares its values and transmits them from the heart.

It’s a tall order, and will stay tall for companies that slowly subside in the social-driven marketplace that is emerging. But for those who can align the corporate voice with the personal, competitiveness and job-satisfaction will go hand in hand.

 

 

Link

#gov20la – notes on my presentation today

These are notes – for now. . . .

The context for technology is culture and human decision-making. The context for Government 2.0 technologies lies in the contemporary crisis in liberal democracy, of which the United States may have the worst case though parallel problems are evident in democracies worldwide.

3-fold crisis:

1. In process

Confidence in Congress reported as having risen to 17%. Rise of “exopolitics” – Tea Party, Occupy Wall Street, Moveon.org, No Labels, the grassroots revolt on SOPA, all examples of the decanting of political focus from the center to activity only indirectly relating to traditional political channels and process. Parallel examples: German Pirate Party overtakes the Greens; Uk Daily Mail endorses Marine Le Pen for the French election.

2. In policy

Major party policy packages were formulated in an earlier generation and are increasingly out of kilter with the focus and weighting of issues of the public at large. A fundamental process of transformation is needed to reconnect with core concerns of 21st century citizens.

3. In leadership.

The faster change takes place, the more leadership is needed. It is lacking across the political spectrum. Leaders frame questions, they enable adaptation to change by shaping people’s thinking not simply following it. 

In each category, engagement in Gov2.0 is key to enabling transformation.