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Brand Strategy Culture Featured

The 4 Phases of Culture Brands

Your brand can only exist within the culture of its time. If you get too far out ahead of that culture, you lose touch with your user. If you trail behind the culture, even a little bit, your user loses touch with you. 

Any given culture generally moves between 4 stages: Entrenchment, Tension, Exploration and Transformation. Each stage leads to the next, and each stage has its own characteristics. 

But just because your industry is in a certain stage of culture doesn’t mean you have to play there. You can change the culture of your category in order to position your brand as the natural winner. 

In fact, most good brands uphold the culture of their time, but the greatest brands move people from one stage of culture to the next.

The early internet culture, the social media boom, and the rise of ethical consumerism all told us the norms of those spaces, but they also gave us a framework for feeling when those norms were being outgrown. It wasn’t until we were given language and ideas like ‘digital privacy’, ‘personal branding’, and ‘sustainable living’ that these categories began to change, and we started to update our place in the world once again. The brands that spearheaded that change, like Telegram, LinkedIn, and REI, ended up creating a market that valued them more than their competitors.

Culture tells us our place in the world. Every category, from media and fashion to food and finance is in a different phase of cultural change, but it’s the movement from one stage of culture to the next that creates the highest form of brand equity

While there are bounds to what culture will tolerate in a given stage, there are levers within those bounds that you can use to push your audience forward. But first you have to understand the rules in order to understand how to properly break them. 

The Culture Brand Cycle is a roadmap for moving the culture of your category from one phase to the next, so that your brand is ideally positioned and your competitors are at a natural disadvantage.

 

The 4 Phases of Culture Brands


Moving your category’s culture from Entrenchment to Tension, from Tension to Exploration or from Exploration to Transformation requires the right kind of brand at the right time. 

Below, I discuss what triggers are needed between each phase of culture in order to move your category forward.

If you can accurately diagnose where you are and where you need to go, you can be the changemaker that captures outsize value.

Entrenchment

Entrenchment is a stage in cultural dynamics where a specific ideology, belief system, narrative, or value-set has become deeply rooted and widely accepted by the majority. It often results in a shared societal perspective, with individuals, businesses, and other institutions investing heavily in maintaining this status quo. 

Entrenchment feels safe, but also stale. There may be a sense of boredom or apathy, but there is generally little discomfort.

The following industries are in the Entrenchment phase right now and they provide good examples of how our value sets in these areas are still pretty deeply rooted. 

  • Fast Food – The fast food industry has been entrenched for decades, characterized by convenience, standardized menus, and quick service. The giants have been giants for a long time, and the challengers don’t look that different from them. The culture in this space is simple, safe and risk-averse, with the vast majority of players (and consumers) valuing speed and cost. In fact, this culture is so entrenched that sociologists consider the “McDonaldization of society” to be a major force that has rippled outside of the fast food industry.

  • Education – The Education category finds itself deeply entrenched in long-established systems and traditional approaches to learning. For decades, formal education institutions like schools and universities have been the primary means of acquiring knowledge, primarily through standardized curriculum and testing. While a glut of tech and learning startups have tried to change this, and there have been movements to shift education toward critical thinking, creativity and problem solving skills, any change has been incremental. Other than online classes and iPads in backpacks, you won’t see much difference in the classroom of today versus the classroom of a decade ago.

  • Hotels – The traditional hotel industry, with brands like Marriott, Hilton, and Hyatt have long-established value propositions of comfort, convenience, and amenities. Despite the rise of alternatives like Airbnb, hotels remain the default option for many travelers and no one is complaining because we’re entrenched in a generally accepted value system within this category.

How To Move From Entrenchment To Tension: Entrenched cultures emerge when people concede to “good enough”, and the only way out of it is to make what’s “good enough” feel painful.

Your brand needs to wake people up to the discomfort they’ve ignored and make them see the inferior status quo they’ve accepted, but simply showing people a better way won’t get you far. 

The kind of pain that spurs a culture out of Entrenchment and into the next phase of Tension is deeply personal and emotional. It’s the pain of cognitive dissonance where there is a conflict between one’s self-image and their behaviors. 

When Apple employed their branding to turn all of us into electronics tastemakers according to Seth Godin, they suddenly created a dissonance between how people viewed themselves and how they shopped for electronics. It was painful to not own an iPhone, which had now become a signal of personal innovation and creativity. Suddenly a whole generation was faced with the question of “Who am I?” when they went shopping for phones.

During its Entrenchment phase, the culture of the auto industry was deeply rooted in notions of raw power and speed. Ferrari spent years engineering the perfect sensory experience of a revving gas engine. The military might of Hummers showed up in the suburbs. The Fast and the Furious multiplied. 

But Tesla took the culture from Entrenchment to Tension by introducing the right kind of pain. They may have talked a good game about replacing fossil fuels with sustainable energy, but what really won them the market was a legion of early adopters who wanted to see themselves as stewards of the future by way of technology. 

They created a new dichotomy between the old and the new. While other EV brands tried to make something familiar, Tesla made a clean break with the past.

Every few months, the internet would gather to watch a Tesla race a gas-fueled supercar on Youtube, until one day the Tesla won. Where there was once the power and speed of engines, there was now the power and speed of computers.

Tension

The Tension phase emerges when friction begins to develop between existing beliefs or behaviors and emerging societal values or needs. These tensions highlight a dissonance between what our culture has accepted and what it may need to accept for future growth. 

You’ll often notice a sense of unease in this phase as people look to the years ahead. It’s an open secret that change is necessary but the opportunity in front of us feels murky. There may be good ideas and alternatives floating around, but consumers still have a hard time seeing them play out. 

The following industries show us how Tension manifests in the market.

  • Automotive – After a very long period of deep Entrenchment where automakers focused on efficiency and dealerships wielded great political power to protect themselves against pressures to evolve, the category has entered the Tension phase. Automakers are experiencing friction between the long-standing tradition of fossil fuel-powered cars and electric vehicles, and Tesla has single handedly put the dealership model under existential threat, with brands like Rivian and Lucid following. Players know change is necessary given the escalating climate crisis, peoples’ increasing demand for frictionless online buying and customization, and loosening legal protections, but many car buyers are still hesitant due to concerns about infrastructure, battery range, and the upfront cost of EVs.

  • Fashion – The fashion industry is experiencing tension as it grapples with issues related to sustainability. There’s growing awareness of the environmental impact of fast fashion, including waste and pollution, but the industry’s reliance on quick, cheap production cycles and consumer demand for new trends creates resistance to change. Consumers, just like brands, say one thing but do another.

  • Agriculture – The agriculture industry is in a state of tension due to the growing awareness of the environmental and health impacts of traditional farming practices, especially with large-scale livestock farming and monoculture crop production. Meanwhile, new concepts like vertical farming, lab-grown meat, and plant-based proteins are emerging but have not yet reached widespread acceptance or viability.

How To Move From Tension To Exploration: If you find yourself in a culture of Tension, the best way to move that culture forward is to create a sense of clarity and opportunity. Show people what’s possible. Even better, show people what they could be capable of.

This is a time to inspire and allow people to see themselves in a new world. Give them something to dream about. Turn them into empowered optimists. Let them turn that tension into a sense of Exploration.

Bitcoin and the brands around it moved finance from Tension to Exploration by giving people a clear sense of the democratic opportunity ahead. In his recent Talks At Concept Bureau on How to Build A Brand Mythology, Peter Spear noted that Bitcoin represents a “Big Bang story for the origin of a totally different financial universe based on liberation and a totally mysterious technology code as a matter of fact.” In the context of brand mythologies, Bitcoin was doing something “cosmological”. The opportunity was palpable.

New healthcare brands like Hudson Health and Levels have reframed medicine as a holistic approach to personal growth, not merely illness. While traditional medicine has been a practice of helping people get back to a baseline, these new brands are about helping people get from a baseline to an ideal. They introduce new ways of relating to one’s body, and new perspectives through which to see medicine, doctors, and patient control that have turned growing tension into exploration.

Exploration

In the Exploration stage, society begins actively searching for solutions to the frictions that surfaced in the Tension stage. There’s a general openness towards new ideas, narratives, beliefs, and an eagerness to experiment with different solutions. This phase, however, is characterized by a certain degree of risk, as the culture navigates uncharted territories in an attempt to resolve the tension and align with new cultural ideals. 

Brands that operate in cultures of Exploration can feel exciting but precarious. So much is possible but a pervading sense of uncertainty colors peoples’ views.

  • Finance – The financial industry is in the Exploration phase, and while crypto and decentralized finance have cooled for the time being, challenger banks, AI financial tools and robotic process automation (RPA) are all going strong and vying to be the new default mode of finance. Traditional banking methods are being questioned, and alternatives are being explored. While many are open to these new financial solutions, the path forward is unclear due to regulatory uncertainties and technological complexities.

  • Healthcare – The healthcare industry is in an Exploration stage with the rise of new screening technology, longevity healthcare, home testing, psychedelic treatment, novel mental health formats and telemedicine. A great deal of this exploration is coming from outside of the system, namely startups and tech companies that don’t fall under the coverage of health insurance. However, the sector is still navigating issues related to patient privacy, quality of care, technological requirements and inconsistent laws and regulations across jurisdictions.

  • Space – The space industry is in the exploration stage. With private companies like SpaceX, Blue Origin, and Virgin Galactic, the possibilities of commercial space travel, asteroid mining, and lunar habitation are being actively pursued. The industry is in a state of innovation and discovery, but the new norms for commercial space activity are still unclear and in the process of being established.

How To Move From Exploration To Transformation: For brands who find themselves in a culture of Exploration, the goal should be to usher their users into a culture of Transformation by creating certainty in the market.

In a high optimism, high risk environment like this, people need to be instilled with confidence to move forward. 

I’ve written in the past that food and nutrition have become our new religions. That’s because the Exploration phase of food culture over the past few years has graduated into Transformation. Functional foods, new diet philosophies and new nutrition science created a vast array of brands that opened up our understanding of what it means to gather and eat. Our relationship to food has evolved, and we now see what we eat and drink as both therapeutic and political.

Highly prescriptive brands like Ezekiel Foods, Hü Chocolate, Vital Proteins and Whole Foods all pushed culture from Exploration to Transformation, and all of them gained massive brand equity and market share as a result. 

What all of these brands did was focus on creating confidence in their categories. Each one created highly informed, highly opinionated consumers that became discerning in their purchases, not simply with information but with philosophies about what it meant to eat, whether it was a matter of health, morality or even status.

People were bolstered with a strong sense of confidence that allowed them to transform the category.

Transformation

In Transformation, our cultural exploration is beginning to yield early winners and losers. This period heralds a cultural shift where new ways of thinking and behaving are adopted and solidified into social norms. It’s a phase of significant change, often seen as a revolution in social principles. 

The Transformation phase can take time and be distributed unevenly across a culture at first, but more than anything else, it is characterized by a sense of comfort in our new realities. There is no identity play, no murkiness, and no lack of confidence. The new normal makes sense.

Categories that have arrived at Transformation can be shaky at first, but they all signal our new shared values. 

  • Media and Entertainment – The rise of streaming services, social media and user-generated content platforms have pushed this category fully into Transformation. Companies like Netflix, Hulu, and YouTube have drastically changed the way people consume content, moving from scheduled programming to on-demand viewing. Distribution models have been upended, causing a significant shift in the overall industry’s structure.

  • Work and Career – We’re just entering the Transformation phase of this category, but our new shared values around work and career have begun to take root. The traditional career ladder is all but dead for most employees, the multi-hyphenate worker is the new standard, and remote work is still in a tug-of-war with legacy organizations but it’s clear that new companies will be much more amenable to the arrangement. Throw in the growing movements around the 4 Day Work Week, work-life balance and the fact that gen Z workers have leaned hard into freelance, and it’s clear that this category is undergoing transformation.

  • Food – Our new food norms are here. Flashy functional food brands that once only showed up in specialty coastal stores are now carried in every Walmart across the nation. National and international fast casual chains have begun to reflect our new diet philosophies, and even Starbucks has rolled out a line of olive oil based beverages that will resonate with anyone who has a certain understanding of dietary fats and the industrial food complex.

Transformation can be a long golden age for brands. Cultures in this phase can feel new for a very long period as people take time to settle into their new normal. It’s the reason why somewhere in the recesses of our minds we still feel Google is a startup or Netflix is a challenger brand. Neither is true anymore, but that mentality speaks to the power of transformation.

At the tail end of the Transformation phase, we move into a period of optimization where margins get competed away and everyone converges on a single modality of solutions. More and more depreciating returns lead to consolidation and oftentimes duopolies. This is where you see regulatory capture as companies work to close the door behind them. What was once a growing pie begins to move toward a zero sum game.

Meanwhile, the status quo becomes stronger until we return to the beginning of the culture cycle with…you guessed it, Entrenchment. 

One important thing to remember throughout all of these phases is that ideas, not technology, impact culture the most. With AI advancements rattling nearly every industry, it’s easy to forget that technology can only express itself within the boundaries of the culture it’s born into. 

Washing machines were supposed to liberate women from the home, but instead the culture of the time made them fire their housemaids and do the work themselves. Mass production of cars should have created the suburbs, but it didn’t. It wasn’t until the idea of the nuclear family was popularized that we saw the topography of cities change. Social media was supposed to bring us together, but within the culture of the time, it’s done the exact opposite. We’ll have to wait for an idea, not a technology, to deliver on that promise.

Know your culture. Understand both what it demands of your brand and what it denies it. Use these cycles to move your people forward with ideas and concepts that can improve the world we live in. 

Very few brand leaders understand how to move the cultural landscape, but those that do have always had an incredible advantage.

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Brand Strategy Video

How To Create A Brand Mythology

insights in culture

How To Create A Brand Mythology

With guest speaker Peter Spear

Brand myths may seem like undecodable magic, but like Air Jordans and Barbie Dolls, what looks like an enigma on the surface is actually a formula underneath.

Brand myths perform 4 functions: the mystical, the cosmological, the sociological and the psychological. Each one of these functions creates context for understanding the world, and when done right, they create the world’s most significant names.

In this episode of Talks At Concept Bureau, ethnographer and brand thinker Peter Spear shows us how companies like Pinterest, Axe Body Spray and even Bitcoin all filled these functions, and were then able to take on mythical proportions as brands.

To get the inputs you need for brand mythology, Peter proposes Brand Listening – his extremely active and open form of qualitative research that anyone at any company can start doing right now.

It’s based on a few core principles, including the fact that we think in images, that people have experiences not answers, and that awkwardness is a beautiful way of opening people up.

This is a talk about both seeing and listening to your audience in a new way so that the mythology of your brand can do what myths are meant to do: give your people a sense of meaning and purpose.


Written By
Jasmine Bina​

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Brand Strategy Featured

The 14 New Rules of Brand Strategy

Six years ago, I shared my 16 Rules of Brand Strategy, a list of tenets to build or test your company’s strategy. That article went viral and is still referenced today more than any of my other pieces. But consumers and culture have changed a great deal, so it’s time to write some new rules. 

Consider the original 16 rules to be the cost of entry. They are now the baseline requirement for brand building. This new and revamped list is how you build on that foundation and level up to greatness. 

You will quickly see that these rules are not only valuable for brands but can (and should) inform product, UX, sales, marketing, PR, HR and nearly every other business activity.  

1. Don’t rebrand the product when you can rebrand the problem.

Rebranding the product puts you in a consideration set with other products, but rebranding the problem can put you in a consideration set of one.

EVRYMAN reframed the problem of therapy from “finding yourself” to “creating yourself” before they positioned their product. Cofertility rebranded the problem of fertility from “egg freezing and donation” to “touching human lives” in order to make their product newly relevant.

We recently helped a client in the debt relief industry rebrand the problem of owing money. Debt relief is a murky category with shady players, and while we understood the tremendous integrity that our particular client was built with, we knew it made no sense to say, “Hey, trust us! We’re the good guys!” (a very common mistake many brands make).

Instead, we dug deep in our psychographic research and saw something remarkable—when people go into debt, they become the debt.

Their entire identities are reduced to one dimension: They no longer identify with their hobbies, they stop going to family functions, stop volunteering, stop enjoying time with friends, stop taking pride in their work, stop planning their lives. 

They lose what makes them human, and understanding this was the real brand opportunity.

The brand wasn’t about an honest debt relief company with good products, although that was very true, the brand was about re-dimensionalizing people. We reframed the problem of “debt” to the problem of “losing selfhood.” And that is the concept we built their entire strategy on.

Immediately, their rebranded ads, messaging and positioning saw a huge uptick, while the culture of the company evolved toward a singular vision that guided every decision toward a common goal.

Think clearly about what you’re branding, because sometimes there is something much bigger than just the product.

2. Real conversion happens emotionally, not logically.

People who have damage in the emotional centers of their brains are normal in every single area of their lives with one notable exception—they can’t make good decisions, and sometimes they can’t make decisions at all. 

It turns out that decision making is driven by emotion, and logic is what we use after the fact to justify our actions. Risk assessment, emotional processing, memory, self-perception and social cognition are all bound together in our brains, and they are all part of a very complex, very emotional decision-making process.

That means B2B is just as emotional as B2C. It means underneath every feature a user tells you matters to them lies an emotion they themselves perhaps don’t understand. It also means feature-led branding will always lose.

You need to find out the emotional triggers that will truly convey your value to the user. Emotions, not features (or USP or benefits or measures of being “better” than your competitor) should be the basis of your brand.

When people convert from the heart and not the head, they are more willing to pay for premium products, more willing to evangelize and more likely to remain loyal in the face of UX and product issues, delays and other challenges. Why would you give up that much goodwill by ignoring emotion?

3. Changing belief means changing identity.

Most brands have one giant challenge between them and success: changing people’s beliefs. 

But the thing about belief is that it’s much more than ideas floating in our heads. Atomic Habits author James Clear famously documented how those who are most likely to stick to changed beliefs and behaviors are the people who first change their identities. Entrepreneur Seth Godin put it another way when he said, “People like us do things like this.”

Belief and identity are so intertwined that changing our beliefs can feel like losing ourselves. It’s scary. We live in a culture that sees it as a sign of weakness—for example, consider the fact that instead of celebrating politicians who evolve their worldviews, we approach them with distrust and skepticism.

But when we change our beliefs, we change our behaviors, and it’s oftentimes the most effective way to get people to understand the value of your brand.

The best way to change people’s minds is to help them see themselves differently in the world. In order to change the beliefs that held people back from running, Tracksmith first had to create an identity around a new “running class” of people who do it for the personal ritual. It created room for a new kind of runner—someone who wasn’t winning races but still had permission to enthusiastically invest in their running practice.  

If your brand needs people to change their beliefs, give them an identity worth adopting.

4. Loose places crave tight cultures.

Every category has a culture. Psychologist Michele Gelfand has found that cultures fall on a spectrum between tight and loose. Tight cultures like finance and sports are governed by strict norms, whereas loose cultures like parenting, food or psychedelics may have an overabundance of information but few steadfast rules everyone can agree on.

Loose culture categories feel chaotic. What diet is the right one for me? Am I raising my kid right? What is the morality of doing illegal drugs for mental health? These categories don’t have a paradox of choice. They have an absence of norms.

I’ve found exploring this theory offers a useful framework for brands. Every brand must assess the tightness or looseness of their culture. If there is a pervading sense of normlessness, then it is likely that your audience is looking for a specific perspective.

Today’s most successful food brands bring a tight culture to loose places. Lesser Evil snacks, Ezekiel breads and Garden of Life supplements are brands built on tight culture.

Ezekiel, for example, conjures the authority of biblical language to define what constitutes real, natural food. Is religious metaphor a cute vehicle for branding bread? Sure. Is it a genius device for bringing a strong set of norms that help consumers assess their bread choices amidst shelves of other options? Also very much yes.

If there is a loose culture, there is an opportunity to set the rules of engagement for your space.

5. Love is great. Hate is useful. Indifference kills.

Most brands have the problem of user indifference. People may think you have a nice enough brand but that doesn’t compel them to convert. Don’t get mired in a quest to gently move indifferent people down the funnel.

Your goal should be to create so much tension that your brand really turns on your lovers or really turns off your haters but leaves no room for indifference. Chasing indifferent users will run your company into the ground.

Ideally you’d want to lean into the love side of the equation, but you can successfully lean into the other side, as well. Marmite’s “love it or hate it” messaging created a near-mythical story around it’s divisive flavor, but the truth of the matter is that people were generally indifferent until the company decided to rebrand around this polarizing idea. 

Oatly created https://fckoatly.com/, an aggregated history of hate toward the brand that you either get and really love or don’t get and really hate. The one thing you can’t do is remain indifferent.

Most founders see indifference as being on the path to love, but that’s a dangerous falsehood. Love and hate are on two ends of the same path, while indifference is a dead-end highway in another town. You will waste precious time and dollars that could have been spent learning about your true base and how to broaden your audience from there.

You’d rather have lovers and haters than a world of bystanders.

6. Make people leave their biases at the door.

Be cognizant of the consumer biases in your category. People may think childcare is menial work, or that math skills are genetic, or that polyamory is shameful (all bases I have worked with for client brands), but it doesn’t matter if they’re true or not. What matters is if people carry those biases to your door.

You can either let them enter with old biases that will make them blind to your USP, or you can signal a whole new set of rules that will make people enter with an open mind, ready to behave differently. I believe this will be one of the most important factors in defining the brands that win and the brands that lose in the next decade. 

When Qualtrics rebranded their category from user data to experience management, they forced a new perspective on how data should be employed. Experience management meant seeing things more holistically across customers, employees and broader stakeholders and crafting an experience, not merely diagnosing problems.

It precluded people from bringing old notions about data into this new environment, which was crucial to their 2019 acquisition for $8 billion, referred to as an “eye-watering” sum at the time.

7. Don’t hide the experience behind conversion.

I often meet companies that have great products and services but their brands do little to reveal the experience beneath. They may talk about features or benefits, but they don’t surface the feelings that underpin them. 

However, without first understanding the experience, users are afraid of unknowns around how to engage and measure the benefit.

Don’t make your user wait until conversion to understand what the experience truly is, because most of the time, they won’t get far enough to find out. Instead, give them a glimpse of how they will feel upfront. Allow them, in some small way, to experience your offering without having to first convert.

Airbnb did this when their brand said, “Belong Anywhere”. That phrase offered a brief window into the experience of traveling by way of locals’ homes that, until then, had been locked far behind the door of conversion.

Find out what really happens on the other side of conversion, capture the way that your users change by way of your experience, and move it up front. 

8. Don’t let value get misattributed.

When my team was building the brand for one of the world’s largest work platforms, we saw something very interesting happening in the user journey.

The super users that got the most value out of the platform believed they had “hacked” it somehow. They believed that they themselves had figured out how to leverage the power of the platform in their business, without recognizing that the UX was actually designed to get them to that point.

Once we saw it with this client, we began to see it with many others. If your user journey is really good at helping people extract value from your offering, it’s highly probable that people think it’s because they are smart, not because you are good. And that means less loyalty and brand equity.

This is why storytelling around the user journey is so important. You need to take credit for all of the incremental value that is created well after conversion by demonstrating the thoughtful choices and guiding beliefs that led you to build that specific journey. Think of it as the digital version of craftsmanship. It’s an important narrative that helps people understand the value that you created for them.

9. Brand first, business second.

Brand is not the look of your website or the tone of your marketing voice. It is the organizing idea for every activity your company engages in, including product, UX, sales, communications, recruiting and even your org chart. 

People read brands between the lines. They understand your brand not by what you say but by what you do, and what you do counts in every single touchpoint, in every single channel. That’s the point of brand strategy—to orient every single business activity toward the same outcome. You should see your brand strategy as a filter for every decision.

The Lego brand is about meaningful play for every age, but that brand isn’t borne of their website or marketing alone. You must take their positioning, product strategy, collabs, press, communities, business model and innovations altogether to understand their deeper brand. If you stopped at the website, you’d just think it was a toy company.

Patagonia’s brand is about drastic measures to save the earth, such as suing the US government and rebuffing the very VCs that turned the brand into a west coast status symbol. These were tactical decisions made through the lens of the brand.  

Strong businesses have brand strategy at their core. You’d be hard pressed to find much daylight between business and brand for companies like Tesla, Apple or Meta.

To make brand inferior to business is a mistake.

10. Strive for brand singularity.

Brand singularity is when the company brand, the CEO brand and the employer brand are all synonymous. It creates a powerful flywheel effect in which no matter who your brand reaches or how it reaches them, you can be certain it’s the same resounding message every time.

Not many companies have accomplished this yet. It’s hard to maintain one brand, let alone three that echo each other.

Amazon, despite seasonal blowback, has incredible synchronicity between its employer brand, customer brand and Jeff Bezos’ personal brand. They all stand for efficiency.

You see it in all three places, from their customer manifesto and investments in delivery to the carefully-placed stories of Jeff’s two-pizza rule, upcycled boardroom tables and the story of a guy who found a way to sell books without having to store them anywhere.

It attracts talent, consumer trust and investor money.

11. Treat community like the first layer of brand.

Our world of relationships is shifting from weak ties to strong ties—from wide networks mostly filled with strangers on platforms like LinkedIn and Instagram to narrow but deeper networks where we share intimate values and culture like Discord and Patreon. 

In our research, we’ve found that people are coming to expect community to be the first layer of brand, especially in premium spaces where people are paying more in money, time or education in order to use the product or service.

The community around Fly By Jing is what sells their premium-priced sauces and spice mixes. The company’s marketing, product and overall experience are solid, but it is the community that signals what this brand is really about. Chances are that if you asked someone about Fly By Jing, they would start by telling you about the brand’s enthusiastic community first.

Where we once looked to experts, community now drives the level of trust needed to convert in costly spaces.

12. Solve 5 problems with 1 solution.

One of the best heuristics for a good brand strategy is if it solves multiple problems with a single solution. I personally like a ratio of 1 to 5.

Architectural Digest’s recent rebrand has turned the once stuffy media label into a newly relatable lifestyle hub that represents far more than architecture alone. 

According to WANT, the branding agency behind the rebrand, Playbook for living was a new brand positioning idea that “captured in a powerful and simple way, the notion of AD as the definitive ‘dream’ book that could direct and guide the essential aspects of how architecture and design unite to create living spaces.”

This concept allowed AD to successfully make their brand relatable to a much larger audience without alienating their core base of conservative readers, moving from being a utility (an educational resource) to being a lifestyle (a resource for imagination and inspiration). It meant tapping into the emotional opportunities of rule #3—“changing belief means changing identity”—to make themselves relevant to the much larger conversations of life, style and identity. It also positioned the brand as a part of pop culture, which has resulted in natural and impactful collabs with celebrities and influencers and has helped form a strong community of like-minded people around the AD brand.

They solved 5 problems with 1 solution, and this ratio is what makes a brand strategic.

Having this high ratio means you are creating more equity with significantly less resources while keeping all of the company’s momentum focused on a single direction. It means you are leveraging specific brand choices today that will create a future market which favors your brand over others. You can’t deny that the AD brand has created a new design culture that today sidelines competitors like Dwell and Wallpaper.

Planning (5 solutions for 5 problems) creates work. Strategy (1 solution for 5 problems) creates great advantage. 

13. Optimism is the only secret weapon.

If strategy lives on a time horizon, brand strategists need to have a strong grasp of where the world is headed. Although it’s very easy to only see the negative outcomes that can happen on that horizon, any futurist or historian can tell you that it is the optimistic future that pushes us forward and usually wins out.

Time and time again I have experienced how optimism is a brand strategist’s only secret weapon. When you can forecast the unexpected benefits of technologies, cultural movements, emerging beliefs and behaviors instead of only seeing the negative outcomes of so much change, you can plant your brand’s flag in the right territory.

Pessimism is easy, but optimism is very hard, which is part of the reason Concept Bureau Senior Strategist Zach Lamb has dubbed it a status signifier of our modern era.

It’s a skill that takes a tremendous amount of imagination and flexibility because it rarely comes naturally. You must cultivate it (and if you’re interested in doing that, I recommend Jane McGonigal’s book Imaginable). It is the optimists, not the pessimists, who make the future and who are able to stand out in the present.

14. Let the work change you.

Never judge your user, even if you see something in them that you don’t like or want to change. My ultimate test for knowing if my team and I or our clients are approaching the user with total empathy is to answer the question, “Has the work changed you?”

Have you looked at the user with enough of an open mind to let it change you as a person? Have you listened with enough presence to connect with a stranger or have a small piece of your worldview shifted?

You can’t experience that kind of change without first asking a certain kind of question. “Can you tell me a little bit about your work?” in a user interview will never get you transformative answers. “If you could have had a job for another life, what would it be? Who would you have been?” demands a degree of openness.

You will understand their deeper value systems, the lies they tell themselves, the struggles they conceal and the lenses through which they make decisions. All of these insights are a goldmine for not only branding, but for UX, UI, pricing, positioning and product.

Your goal with user research shouldn’t be to merely gather data but rather to make people feel seen. Without deep empathy, you are guaranteed to miss an important insight. 

The reason why strategists love what they do is because it allows them to constantly evolve past their own limited beliefs. Working with a beauty brand made me excited about getting older. Branding a construction tech company made me proud of the American work ethic. Spending time with the fans of a plus size clothing brand made me grateful for parts of myself I once tried to erase.

In fact, “Let the work change you” is our company’s first value. It’s that important.

Ask yourself the last time the work changed how you related to a population you thought you had nothing in common with. If you’re not changing, you’re not really doing the work.

 


 

You don’t need to follow all of these rules to have a successful brand, but it’s crucial that you embody the general spirit of this list, which is to always be questioning and investigating the deeper reasons why people think, behave and believe the way that they do. 

The greatest brand strategies have one thing in common: they understood their users. On a fundamental level, that’s what building a company is about, too. Understanding people is what leads to big and impactful ideas.

I believe the path to an incredible brand strategy already exists for every brand. Your job is to keep searching until you find it, and my hope is that this list acts as a wayfinder on your journey there.

Categories
Brand Strategy Culture Featured

High Fidelity Society Is Reorganizing The World

We used to pass culture through objects. There was a time for many of us when a vinyl record, a luxury handbag or a Lisa Frank folder were relics that signaled “I am one of you.” They had singular meanings that everyone agreed upon, and appreciation of the object itself was at the center of the culture. 

But today, there is perhaps no more effective way to signal “I am one of you” than with a carefully selected meme or perfectly ungrammatical text. A specific mashup, a certain combination of emoji or a self-referential aesthetic can convey multitudes more about a culture now than any physical item ever could.

When we stopped passing culture through objects and started passing culture through digital artifacts, we moved from low fidelity society to high fidelity society

My cofounder, Jean-Louis Rawlence, coined the term high fidelity society to frame the moment our cultural signals shifted from wide knowledge to deep nuance. 

The low fidelity society of just a few decades ago thrived on singularities and binaries. Households had split roles, careers had predetermined trajectories, perceptions of gender ran within clear lanes, lifestyles spread across a simple set of socioeconomic classes, political parties were mirrored images of one another and economics followed the rules of supply and demand.

The spheres of possibility were narrow. We shared the same core values because we all watched the same TV, read the same papers and subscribed to the same institutions. 

Less information was the hallmark of a low fidelity society and what made it work. When a world is that small, it can only support a simple set of social rules. If a subculture didn’t fit our neat binaries and categories, it was omitted from the canon or filed down to fit into broader societal trends. It makes sense, then, that our cultural objects took little context to be understood. 

But high fidelity society shifted things. Suddenly, with our worlds online and with the ability to capture and codify so much more information, culture ballooned and our digital objects became massively heavy with meaning.

As the sheer volume of culture in our digital worlds inflates every day, the centerpoint of history only gets closer. This phenomenon has rendered trends meaningless as markers of time and place and similarly snapped our connection to what might be called the highest tier of cultural objects: historical art. 

 

@dtstrends

We’ve officially cycled through every single decade… whats next? 🔎 Nostalgia has been one of the strongest driving forces for a long time, but now that we are already cycled through Y2K into the early 2010s, we are starting to wonder… what’s comes after nostalgia? Out newsletter dropping on Monday will deep dive into this and give you free stock photos + strategic tips to stay ahead of the curve 🌊 #culturetrend #nostalgia #nowstalgia

♬ original sound – DTS

“Nowstalgia” and the loss of time and place.

 

Younger collectors are proving to have no regard for the masters or the canon because, as professor Giana M. Eckhardt notes, “If you look back at human development, there were tens of thousands of years in which things didn’t change that much. Humans have not developed enough to be able to react to social change that is this quick. This leads to people putting a value on the new in different ways from the past.” 

But I would take this insight a step further. What we’re really seeing is the weakness of physical objects as vessels of culture in our expanding high fidelity society.  

When a culture changes its medium, the medium changes the culture. Keep in mind that high fidelity society is not merely about more choice. It is about exactness. Our new medium of passing along culture has allowed for an incredible new fidelity to be had in every way we choose to engage with the world. When we engage in new ways, we create new realities. 

Nearly every singularity and binary – gender, family, identity, and so on – has crumbled. Lifestyles and socioeconomic tiers have at once exploded and collapsed into each other. Social rules have become complex (and if you don’t think so, you’re probably breaking them). Career paths are unrecognizable from where they were a decade ago, and a meme page like Litquidity can spin out into a VC, which it did. 

If you’ve ever laughed at a “starter pack” meme, you’ve felt the gulf between low fidelity society and high fidelity society. 

 

high earner, not rich yet finance guy in Montauk starter pack meme showing high fidelity society

 

A Litquidity meme can nod to various cultural touchstones in one simple image. It might make a reference to HENRY culture, self-skewer bruised egos and the need for status regardless of the cost in money or self-respect and embrace the cognitive dissonance of new wealth at a time when the markets have failed to act the way they should, while still reveling in the basic bitchness of it all. 

But most importantly, if you understand all of these layers together, you also feel the giddy, feverish camaraderie of those who practice the “farce of high finance”. And even if you don’t understand this meme, you still recognize that there is tremendous information density within it.

The physical objects of low fidelity society worked to homogenize our culture, but the digital artifacts of high fidelity society fragment culture into many pieces. And it is within those fragments that we can begin to see the future of business and branding. 

Dating app Feeld operates in high fidelity society. They are part of a cohort of early brands that feel the pressure for a new digital infrastructure to house our high fidelity needs, and my team and I were fortunate enough to work with them to develop their brand strategy.

Feeld has created a platform for dating in all of the ways that low fidelity society could not hold. Polyamory, consensual non-monogamy, homo- and heteroflexibility, pansexuality, androgyny, aromanticism, voyeurism and kink are just a few of the sexual identities that high fidelity society not only holds, but makes increasingly visible. Much like the Sapir–Whorf Hypothesis of language, the more ways we have of expressing ourselves, the more we will express ourselves in different ways.

All of these identities demand new forms of connection, and Feeld is creating a unique infrastructure that allows connections to evolve instead of conform. Every feature, whether it’s the typical swipe or the novel “desire” tag, is tested with the question, “Are we letting people create new forms of closeness and intimacy here, or are we forcing people to follow old models?”

One of the clearest insights in our research for Feeld was that people in the dating pool have begun to move away from a destiny mindset of marriage, the American dream or other low fidelity aspirations to a distinctly growth mindset. 

Daters today expect relationships to help them grow as individuals, and for many, there is no end state or goal. Instead, dating is a continuous form of growth and opportunity to discover  who they are. This user sentiment stands in stark contrast to the dating apps designed for low fidelity society that boasted of being “designed to be deleted”.

Most importantly, Feeld is not the fringes of culture. In our research, we found that heteronormative users, as well as people who had not yet experienced the platform, expressed the same desire for vivid connection, aliveness and a growth mindset. They simply had not found their avenues yet. Feeld is, in fact, all of us. 

In a sea of dating apps racing to flatten the human experience, Feeld has opened a portal to something much larger. Dating in high fidelity society is multiplicative. It has become recursive, and that requires a very different kind of platform.

 

feeld dating app

 

As New York Times reporter Gina Cherelus has astutely said, “To describe yourself as single and in search of a relationship is almost too simple of a label in 2023. The way we seek romantic connections, especially with the influence of social media and dating apps, has naturally altered our behaviors and language around dating.”

Feeld’s world of dating, sexuality and relationships embraces this ever-increasing complexity, in part by utilizing the layered meaning that characterizes high fidelity society. 

In high fidelity society, a wellness influencer can at once signal their health practices and political leanings with leetspeak like “medical indu$try”. An aesthetic like corecore can at once signal a certain subculture’s age, nationality, disillusionment with technology and the larger context of absurdist content that gives people room to criticize something while also sheepishly embracing it. Feeld respects the fact that its users are already immersed in a highly contextual world.

 

@flicksaga

Yea #nichetok #corecore

♬ The Sound of Myself – Disasterpeace

corecore TikTok by flicksaga

 

Not many brands operate in high fidelity like Feeld does, but more and more are making the jump, and we’ve had the privilege of working with some of them at Concept Bureau.

Companies that are building for high fidelity understand that they are no longer building for the average or the standard. They are building platforms and communities that allow for a fragmenting of experience, giving users room to create net-new realities. 

They know that as peoples’ communities and identities become more specific, our many different cultures will only become more narrow and deep. The mechanics of this new culture, then, naturally incentivize the compounding of meaning and with the proliferation of content creation tools (dare I say A.I.), the density of culture will only increase.

In our work, we have seen a growing appetite for high fidelity infrastructure in every single category. Whether it’s work, finance, health, luxury, education, parenting or anything else, people are already living high fidelity lives but are forced to express them on low fidelity platforms

When we see that tension, we know there is latent demand for new infrastructure. This is a once-in-a-generation opportunity for brands to leapfrog a market full of low fidelity players by ushering people into a high fidelity experience. 

But codifying high fidelity society is a difficult task for any founder. There is no precedent to fall back on, and as the world reorganizes itself, we have to be careful to not use old rulers for measuring new ideas. 

There are two major paradigm shifts that can guide you in the right direction and have proven to be fundamental in moving our clients over the line from low fidelity society into high fidelity society. 

They require a significant change in how we understand networks, but even more importantly, they begin to show us just how big of an opportunity lies ahead.

Shift #1: From Goalposts to Participation

Low fidelity society is organized around goalposts. Getting a college degree, house, promotion, marriage, kids and retirement are the obvious ones. But there are other goalposts everywhere around us, like being a LinkedIn super connector, being verified on Instagram, making the Forbes 30 under 30, backpacking through Europe, starting your first business or “finding yourself”.

You have or don’t have. You reach the goalposts or you don’t. Up until this point, we’ve been able to measure value in binaries because low fidelity society gave us clear definitions of what mattered.

But high fidelity society resists such clear definitions. What matters to one fragment of culture will not matter to another. What matters to hopepunks vs. nihilists, keto warriors vs. vegans, tiny homers vs. van lifers or anti-natalists vs. mommy tribes will all be different. 

The desire to experience progress in one’s life never goes away, but how we measure that progress has become much more nuanced. 

In high fidelity society, goalposts are replaced by participation. In a culture where there is no singular end goal, progress becomes invisible and our value is instead measured by how deeply we engage. 

We realized that Feeld users across the board were not looking to reach the next goalpost. Their growth mindset resisted everything you might see in a traditional dating environment. Instead, Feeld users, and people in high fidelity society in general, pay attention to participation signals. 

It is not how much you have accomplished, but instead how much you have engaged and evolved. Over and over again, people described coming to Feeld in order to feel vividly connected to their minds, bodies and relationships, and they looked to learn from others who had done the same. They sought to participate rather than reach an arbitrary relationship goalpost, because participation proves a genuine interest in growth. 

Goalposts run out at some point. Business author Donald Miller has noted that after marriage and kids, life stops giving us scripts for how to matter in the world. Perhaps that’s why midlifers 50 years and older are Feeld’s fastest growing demographic on the app. Even up until then, you can likely sense that the goalposts of low fidelity society are becoming increasingly meaningless.

Polywork, a network for multi-hyphenate professionals, is another early example of a brand experimenting with new ways of measuring participation while de-emphasizing the traditional goalposts of their space. They’ve rethought what work and collaboration really mean in high fidelity society, and have built a creative model for revaluing participation between users. They understand that value systems are changing.  

It’s vitally important to note, however, that participation needs to be a currency between people. Platforms have historically made participation a currency between the user and the brand, but that’s meaningless in high fidelity society. We’re exchanging weak ties for strong ties, and deep networks for wide networks (something I have talked about here and here). 

Making participation between people something that is valued, measured and highly visible within the platform experience – without the expectation of reaching a goalpost – creates wholly new opportunities for high fidelity brands.

Shift #2: New Ways of Knowing

In high fidelity society, there is more than one way of knowing. 

For the past year, my Concept Bureau colleague, Senior Strategist Zach Lamb, has been exploring the new ways of knowing that have emerged in religion, politics and lifestyle. According to Zach, we’ve bypassed the models and institutions that used to mediate higher knowledge for something more immediate and direct. 

Knowing in high fidelity society is now firsthand. Self-directed ketamine startups aim to replace the therapist’s office. Mystical Instagram accounts have replaced church. TikTok has replaced school. 

Call it spirituality, intuition or being tapped in – whether it’s knowing god, knowing the truth or knowing oneself, the very business of knowing has become a highly personal and emotionally-driven endeavor. We are exploring new, unfettered ways of knowing everywhere around us. And all of these new ways of knowing help us create new stories about who we are in the world.

 

 

As culture multiplies and fragments, new ways of knowing will also be the hallmark of brands in high fidelity society. In such a dimensional era of culture, we can no longer determine what we need to know by glancing at a list of LinkedIn recommendations, a work history or a bulleted resume. Nor can we glean what matters from a Tinder blurb, an Instagram profile pic, a list of interests, a badge, a milestone number, a label or a bio. 

These rough, often misleading approximations of who people are have never fully worked, even in low fidelity society. And they will stop working entirely as culture becomes more exact. 

If we are building for the fragmenting of experience and creating room for nuance and specificity – for people to connect deeper instead of networking wider – then our platforms need to create new ways of knowing that go far beyond anything we see today, because every low fidelity signal will fail in the high fidelity world.

Feeld has the same challenge. Creating new ways of knowing another person (or oneself, a relationship, a couple and so on) will be fundamental to their success. They, like every other high fidelity brand, will need to reconsider how people both express themselves and understand  each other, oftentimes rethinking the very mediums through which people can connect.  

For us as brand strategists, it also meant engineering a brand experience that leaned into the feelings and emotions of truly knowing oneself and others. 

Every great brand sets the expectation of the experience before people cross the threshold of conversion. High fidelity companies need to be especially careful in setting the expectation of new ways of knowing, whatever that might be for a specific brand, because we can’t expect people to behave in high fidelity ways if we do not first make them leave their low fidelity biases at the door.  

Your brand is the first stop in shaking people out of their old habits. Every current way of knowing – from bulleted stats to blurbs to recommendations to bios to photo carousels – needs to be rethought. None of these help us feel a person, and absolutely none of them are a strong foundation for greater participation between people. 

Brands like Fieldtrip, How We Feel and allUP (a Concept Bureau client launching soon) have built innovative formats for new ways of knowing that historically weren’t available to their users. Each of them makes personal or interpersonal understanding the bedrock of their UX.

The new ways of knowing that will matter are those that help us weave a story about who we are in the world and how others’ stories intersect with our own. That is where high fidelity flourishes. 

The Universal Reorg

I’ve found high fidelity/ low fidelity to be a great tool for both organizing the players in a landscape and understanding where behaviors are headed. 

Brands that play in high fidelity society create a natural tension with low fidelity players. In branding, tension is a great tool for forcing a decision. Our new digital infrastructures will not just be incremental improvements. They will be invitations to either stand still or step into a new reality. 

But more interestingly, as a strategist I have seen just how eager people are to start living in high fidelity society everywhere, although they may not have the words to articulate it. In a particularly moving interview, a Feeld user said that in high fidelity, “You feel like you are able and allowed to glow in every part of your life […] I feel like I can breathe”. 

If I took that quote out of the dating space and put it in another space like work or finance or education or social media or fashion or beauty or wellness or anything else, it would still ring true. If you do good user research in your industry, you will eventually uncover this sentiment across your entire population, as well. The desire to live in high fidelity is universal across people and categories

It is not technology that begets culture, it is culture that begets technology, and in every generation there is usually one major cultural shift that reorganizes all of the technology ahead of us. High fidelity society is an incredible opportunity to position your brand as a force for moving forward. 

Categories
Brand Strategy Featured Futurism

There Is No Brand Strategy Without A Prediction

At the heart of every culturally impactful brand is a wager on what the next 5, 10 or 15 years will look like. Impactful brands make it their job to inch toward that vision in every single action they take.

Parsley Health is about functional medicine but if you experience the brand in any meaningful way, whether its logging into their patient portal, walking into a clinic, or following CEO Robin Berzin on social, you will see that they are betting on a very different kind of medical mentality emerging in the coming years among consumers.

Parsley believes patients will become the new experts: proficient in their own health and wellness, talking from an empowered point of view with their medical providers, and open to exploring complementary therapies that combine mind, body and soul.

Nearly all expressions of the Parsley brand are geared toward making this future a reality. Even though Parsley has great tech that makes the medical experience remarkably different from the usual visit to the doctor’s office, they rest their brand strategy on the changing user instead of their platform.

What Parsley gets right and so many others get wrong is that ideas, not technology, are what impact the future the most.

It was the romanticized notion of the nuclear family, not the mass production of cars, that changed America’s suburban topography. It is the changing notion of career and success, not the advent of laptops or post-Covid remote work, that will alter the world of work forever.

Oftentimes, future-forward brands tend to make technology the center of their strategies rather than a larger idea, but as Tom Vanderbilt puts it, “When technology changes people, it is often not in the ways one might expect.”

The washing machine had the potential to liberate housewives from the home, but instead it freed them up to do the work their housemaids once did. Though the technology changed, the idea behind a woman’s role had not.

Predicting the future is fundamental to your brand strategy but not as easy as it may seem. The correct signals often get lost in the noise of invention.

Taking a look at films from the 1960s that predicted the future, it becomes apparent just how easy technologies are to predict, but changes in behaviors and beliefs are much harder to forecast, even though they are the major drivers of a culture’s evolution.

“The Home of 1999”, a film from 1967 made by appliance manufacturer Philco-Ford predicted where technology would sit in our lives with surprising accuracy, but made glaring omissions in how culture would evolve.

The 1960s futurists behind this video predicted online shopping, but not female financial independence. They predicted emails, but not remote work. They predicted microwaves and other kitchen technology, but did not predict that fewer and fewer people would be eating around a dinner table together.

If this video feels strangely empty to you, it’s because while technology is an important part of the future, it simply is not the future itself.

Ideas, not technology or invention, are what change the future most, and that is what you should be betting on. Parsley has great tech, but it is the shifting cultural convention that will change their future, and every day they are speeding that change along.

The future isn’t new technology. The future is changed people. Your brand should be placing its bets on who we will become. 

Starbucks built a brand on the prediction of a changing culture that was lacking places to gather, and the creation of the third space to fill that future need.

So when Starbucks announces that they are piloting EV charging stations in their parking lots, it naturally makes one wonder if they’re still betting on that future.

Fast Company, October 26, 2022

On the surface, it seems that perhaps they are pivoting their bet to the technology. Starbucks wants to attract more road warriors, they know that more of those people will have EVs, and so they’re creating a convenient place for them to stop while they charge.

True, yes. But what may be more true is that our third space is changing.

A great deal of Starbucks’ square footage is used for work, and in the era of remote workers, even more laptops and bookbags have popped up in locations across the globe.

Starbucks isn’t betting on EVs. They’re betting on our changing relationship to the commute and work. What they see is EVs eventually becoming autonomous self-driving vehicles, and that presents a huge opportunity for behavior change: the car as the third space, where people who are no longer required to have eyes on the road can instead work on their way to their destination.

Work has already become decoupled from the office and the desk. There is a changing mentality that “work time” and “living time” are not two separate halves of the day, but rather many fragmented windows that splice in between each other. When the belief about when and where we work changes, so does Starbucks’ place in the world.

It’s not a given, but like any good brand, Starbucks is making a prediction and then working to make that prediction a reality.

When a brand has a prediction at the center of its strategy, it sends a signal to the market that the company not only intends to own that future, but that any other brand playing outside of that future will be sidelined.

Last year Kia Motors rebranded to drop the “Motors” from their name and simply become Kia with the tagline “Movement that inspires.” Like General Motors and Mastercard who also released newly minimalist logos around that time, they were working to distance themselves from their original technologies.

With all of these companies, the future prediction at the center of the brand was moving from the technology to a larger idea. Kia President and CEO Ho Sung Song made it clear that, “It’s no longer about machines, it’s about people.”

Moving from motors to movement implies a strong belief of the future for Kia – that it’s not going to be about making a better engine, but rather about changing our beliefs and behaviors around how we move in this world.

The greatest benefit of a brand strategy based on a prediction is that it naturally spells out the business strategy. The expert patient, the third space, the future of movement – all of these predictions lay out strong parameters for the business itself.

They dictate business model, product roadmap, UX, values, org chart and so on, in ways that technologies alone cannot. And when brand strategy begets business strategy, there is a beautiful symmetry that only makes both parts stronger.

Making the right kind of forecast means thinking deeply about where people are headed and what emerging beliefs, behaviors, mentalities, value systems, ideals and cultural ideas can be brought to the surface with the right conditions.

Technology creates new opportunities and branches in the human path, but it is only larger ideas and mindsets that dictate which path is ultimately taken.

The focus of your prediction matters because the brands that predict the future are the brands that make the future. Everybody else is simply following the path laid out by others.

Categories
Brand Strategy Featured Marketing

Brand Singularity Will Define The Next 5 Years

Brand strategy, at its core, is about predicting the future and then making that future a reality.

The outsized benefits of brand live 3, 5, sometimes even 10 years ahead. Brands that pull that future into the present day change users’ consideration sets and bend the will of the market toward their doorstep.

Strategists are futurists. There is no strategy without a prediction.

If you get those predictions right, you will get a brand strategy that amplifies the business strategy rather than trailing it.

There is one future signal that has an immediate impact on branding for nearly every company in the next few years and it can be found in a simple, unassuming chart about C-level job postings that was published in HBR this month.

The C-Suite Skills That Matter Most, Harvard Business Review August 2022

In the study, researchers found a rapidly growing appetite for CEOs with strong social skills coupled with an equally declining appetite for operational expertise. In other words, companies want leaders who know how to leverage and navigate culture more than they want leaders who know how to direct financial resources and technical expertise  —  and the inverse relationship between these two needs has only gotten more dramatic in the last 7 years.

It makes sense that as companies have become more complex they need leadership with higher levels of interpersonal fluency, but something else is happening behind the executive curtain.

The trifecta of consumer brand, the CEO’s personal brand and the company’s employer brand are all becoming the same thing.

Company boards are increasingly searching for ‘blue unicorns’  —  leaders with powerful social presence who, as Peter Aceto, former CEO of Tangerine once said, “would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Superbowl commercial.”

Blue unicorn CEOs are no longer figureheads for the company brand, but rather direct expressions of the brand itself.

Our perceptions of what makes a great leader have changed significantly in the last decade, due in part to lockdowns, unprecedented scandals of all kinds, and never-before-seen market dynamics. Today, we expect leaders to be highly self-aware, open and at times even vulnerable.

In fact, there is growing evidence that the number one predictor of someone’s success in today’s business climate isn’t IQ (intelligence quotient) or EQ (emotional quotient), but something called CQ: the quotient that measures “the capability to function effectively in a variety of cultural contexts.”

CEOs must first and foremost be stewards and navigators of culture. But there is perhaps an even larger brand benefit here.

Celebrity CEOs like Jay-Z, Martha Stewart, Steve Jobs, Elon Musk and Adam Neuman have created brands that make them impervious to angry boards and poor P&Ls, but also trained the public to demand a certain kind of enigma from its corporate leaders.

Enigma, charisma, whatever it is, we now expect a certain awe-inspiring magnetism from our CEOs, and this is increasingly the yardstick for measuring good leadership, instead of more historically important markers like strategic thinking and industry expertise.

Meanwhile, the public’s growing appetite for business news over the past few years has incented media to not only cover more business, but reduce its happenings into easy-to-follow storylines, which are bedazzled with drama, gossip and mystery.

The CEO has become a cultural bellwether.

And you can’t talk about culture without talking about the third piece of the branding trifecta: employer branding. Knowing how to build, navigate and bridge cultures is the biggest thing we see in employer branding today.

There is the obvious benefit of attracting high-level talent, but as my colleague Zach Lamb has pointed out, markets and consumers are paying attention to employer branding practices and cultures.

In our own research at Concept Bureau we’ve seen that in B2B sales a surprising number of clients will first vet a services partner by their Glassdoor reviews, believing that if that partner doesn’t treat their employees well they won’t treat their customers well, either.

As work memes take over our feeds and what happens inside a company continues to make the news, companies can’t afford to have an employer brand that is not completely synonymous with their overall brand.

In the near future we’ll be seeing Brand Singularity, where personal brand is company brand is employer brand, and the product is the story that emerges in the overlap of all three of these things.

Today’s typical brand addresses the trifecta with three different answers. Netflix’s consumer brand is closely tied to their content. CEO Reed Hasting’s personal brand is visionary at times, while lacking in more recent times. And their employer brand vacillates between ruthless and confused.

On the other hand, we have Hello Sunshine, Reese Witherspoon’s female-focused media company that has produced hits like Big Little Lies and Little Fires Everywhere in the eight years since it launched. They have not reached brand singularity yet, but already they are making inroads toward it and seeing the benefit.

Their content portfolio is thin, but there is a singular, synonymous brand between Witherspoon’s persona and the consumer brand. She is Hello Sunshine, and Hello Sunshine is her. It’s an overlap that is so powerful that Witherspoon just sold the company for over $900M.

Hello Sunshine is no Netflix when it comes to market cap, but $900M for a fledgling studio in a contracting market is by all measures outsized when compared to the giants in the room.

In the next 5 years, we will see companies reaching Brand Singularity and reaping the early rewards of market share, fandom and talent retention. They will be the companies that have done the hard work of creating a unified brand front  —  not synchronicity like we have seen with branding in the past, but instead synonymity.

Right now we see only parts of the equation being written. Many companies master personal brand + consumer brand, such as Hello Sunshine, but also the ventures of the Kardashian-Jenner clan and MrBeast. Even with only half of the Brand Singularity equation figured out, these names are making big profits.

As David Friedberg recently said, the influence of these brands is outsized and defensible. They prove that when the CEO is a direct expression of the brand and vice versa, their value takes on exponential proportions.

E95: Winter is Coming, Europe’s energy crisis, Kim Kardashian’s new PE firm & more

 

On the other side of the equation we see inroads being made with the overlap between employer brand and consumer brand.

Amazon may not be one of the most positive employer brands in their warehouses, but it is one of the most effective employer brands in the executive realm. If you pay attention to all of the messages in their press, good and bad, you will get a clear message about their operational excellence.

It’s no accident that stories about the empty chair in the meeting, the two pizza rule and three good decisions a day not only made their way into public consciousness, they served as signals of what the overall Amazon brand was about. Prospective talent, especially elite leaders, understand that even with rumored cutthroat practices, they would not be hindered by underperforming teams  —  a common concern among the many high quality leaders I have personally interviewed over the years, and a fact Amazon is banking on.

Amazon’s employer brand and internal culture is in reality a marketing vehicle for both attracting talent and buttressing the consumer brand. As Prime members, we read those stories with disdain, but somewhere in the back of our minds we know that’s likely why our packages miraculously arrive within 24 hours.

I recently wrote that the employer brands that consistently attract elite talent are the ones that lean on vision, not mission. Vision creates the kind of high-risk, high-reward messaging that great brands are built on. Many companies fall to their missions because they help keep the status quo internally, but it’s the vision that keeps a company’s workforce adaptable and responsible to the larger brand.

It’s been my experience that Brand Singularity, even if only partial, creates vast operational efficiencies.

Teams naturally move away from siloed practices that hold the company back as a whole. People in every single department find it easy to act as a brand owner in their own capacity (a CMO’s dream). Values, missions and visions stop being weaponized and start getting used properly. Positive internal cultures build faster and the circle around “who we are and what we do” becomes tighter.

Brand Singularity is just as much an operating principle as it is a branding one.

 


 

Having a single identity that captivates and motivates all audiences — customers, employees, prospective talent, board members and investors alike — is the inevitable outcome of a dynamic world where no one group is siloed and no one side of the business works in a vacuum.

Brand Singularity is incredibly hard to reach but will be a major competitive advantage for those that achieve it.

We’ll be seeing more and more brands moving toward this new state over the next 5 years, and it will require a conviction and dedication to brand that we perhaps haven’t seen much of yet. But once it starts popping up across the landscape, it will be the defining factor between brands that attract value from the market and those that chase it.

Categories
Brand Strategy Featured Marketing

How To Brand A Community

If your product is a community, or your community is beginning to become the product, you are already living in the future of Strong Ties.

And in this future we need new rules for brand strategy.

Weak ties historically allowed us to extract value from the peripheries of our networks (think LinkedIn, Instagram and Twitter), while strong ties extract value from relationships at the center of our networks (think Patreon, Polywork, and the proliferation of like minded living communities).

This is a massive shift considering that weak ties have been the underpinning of social innovation for the last two decades, and are now declining while strong ties are starting to emerge as the dominant threads of our social fabric.

New social innovation means that any meaningful group will be forced to rearrange itself, whether it’s an online community, a movement, employee culture, subculture, club or cult following.

Strong tie communities tend to have the following characteristics:

  • They naturally incentivize going deeper with smaller circles of people, rather than going wider with larger circles of people.
  • They prioritize innovation in how people connect, not how many people they connect with.
  • They allow members to individualize themselves instead of forcing them to standardize themselves.
  • They give members true ownership, either through literal shares and coins, or by giving them the power to shape the group culture, norms and evolution.

When strong ties become the future of community, community becomes the new brand.

This is how to build that brand strategically.

1. If you break an old system, you must create a new one.

Occupy Wall Street, Anti-Vaxx and Anonymous were all communities based on opposing or tearing down old systems. None of them fulfilled their visions.

That’s because old systems leave vacuums in their absence. You cannot successfully remove an old system without replacing it with a new one.

This is why secular congregation communities like Sunday Assembly and Oasis that offered gatherings without god went nowhere, but fragmented spiritual groups like Nuns & Nones and spiritual leaders like Esther and Jerry Hicks or Gabby Bernstein that give safe haven and new systems of meaning to the post-religious, are thriving.

Sunday Assembly London, August 31, 2022

The first group broke an old system. The second group broke an old system and replaced it with a new one.

Many communities – from online groups to movements to even countries – exist in opposition to something else. Yet if the situation or the rhetoric changes, all value and credibility can be lost in an instant.

The once highly buzzed about r/antiwork community, whose tagline is “Unemployment for all, not just the rich”, works to tear down old systems but offers nothing new.

It’s no wonder that r/antiwork lost nearly all credibility when a short Fox News interview revealed just how directionless the community was in their vision for what would replace the current “work” system.

https://www.youtube.com/watch?v=4IfzpgGwHkI

A mod from the subreddit r/antiwork on Fox News

 

As New York Times journalist Oliver Whang questions, “Hating your job is cool, but is it a labor movement?” It seems the answer is no, it is not.

Scholars increasingly point out that the problem with many community brands is that they demand “the destruction of existing institutions without offering an alternative vision of the future or an organization that could bring it about.”

The winners consistently create new systems to replace old ones.

2. Know why you gather.

If you don’t know the real reason why you gather, you will miss the few, brief opportunities that could take your brand to greatness.

In 2019, when kids’ drawings emerged from a detention facility in Texas where migrant children between the ages of 10 and 11 years old were being separated from their parents, the Smithsonian made the very interesting decision to try and acquire the artwork.

A drawing by a migrant child at the Catholic Charities Humanitarian Respite Center in McAllen, Texas
A drawing by a migrant child at the Catholic Charities Humanitarian Respite Center in McAllen, Texas. NPR, July 9th, 2019

The Smithsonian, whose collection spans Apollo 11 pieces, Dorothy’s ruby red slippers, and the Hope Diamond, is a treasure trove of easy-to-love Americana. But over the years the museum has realized that their people don’t gather to marvel at American history. They gather to witness the humanity of America.

When the migrant children’s drawings emerged, it made sense for the Smithsonian to identify it as a collection of art to gather around. Without really knowing why they gathered, the opportunity would have been lost.

Why you gather has huge implications for how your community’s brand is perceived. Knowing why you gather is the same as knowing how your brand creates value. 

It’s a crucial truth that many community brands fail to articulate, and even those that do often lose sight of it over time. Knowing why you gather keeps your brand centered.

It’s the only way to seize landscape opportunities that would have otherwise gone unnoticed.

The Smithsonian said something when they pursued the artwork of migrant children at the center of a political firestorm and America’s reckoning with its own sense of humanity. And the people that will hopefully one day gather around those drawings will not only know why they are there, but feel where we have been as a country.

3. Embrace optimism.

Or perhaps more accurately, resist pessimism.

As Nat Friedman has said, “Pessimists sound smart. Optimists make money.” This is true in community branding as well. Pessimistic communities may attract attention, but it’s the optimistic ones that grow and prosper. 

Most anti-capitalist groups go some distance on pessimism, but communities like FI/RE or Fat FI/RE run much further on optimism. The perceived merits of each community notwithstanding, it is clear that optimism mobilizes people toward a shared goal much faster.

Optimism is especially important when it comes to employer branding, both within the company culture and in attracting ideal talent.

In my own work and research I’ve seen that truly optimistic brands lean on their visions, not their missions, to rally people. That’s because the best talent moves to be inspired, and that only happens when you have a vivid vision of the future that only your community can create. Visions paint the future, and missions spell out the who-what-how of getting there.

In my interviews with high level talent for employer branding, we consistently see sought after talent be drawn to visions, not missions. This group of people wants to gather and grow around an optimistic ideal and know that in their short time to make a difference in the world (and just as importantly, in their careers) they will be aiming big enough to do something that matters.

Companies that lead with mission tend to focus more on making their audiences happy (missions usually speak to customers and can leave out employees entirely). Making a subgroup of people happy is not the same as changing the world.

Why are cults at an all time high around the world, especially in first world countries, despite education and socioeconomic background? Why do crypto, DAO and NFT communities refuse to die, despite countless news cycles calling the end of these movements?

Because there is a deep seated, stubborn optimism baked into the DNA of those communities and their brands that will not be destroyed.

Yes, even cults are driven by optimism, as cult expert Amanda Montell pointed out in my interview with her:

“The ultimate fatal flaw across all cult followers from folks who joined the Heaven’s Gate, the nineties suicide cult, to folks who strike up with multi-level marketing cults, in scare quotes, was yeah, not desperation, but optimism. This overabundance of idealism, that the solutions to their problems, whether that was racism or classism or for financial insecurity, could be found and if that they affiliated with this group, with this leader, they could be a part of that change. It takes someone really optimistic to sign up for a belief like that…

Optimism that was their Achilles heel more than any of the qualities that the cult documentaries you might watch would lead you to believe.”

Oftentimes that optimism is what carries a young community from near death to new life.

But take care that your optimism doesn’t border on emotional hijacking. Why did this Heineken commercial work so well, while all of those Dove Beauty ads eventually fell to criticism?

https://youtu.be/XpaOjMXyJGk

Heineken gave us a reason to be optimistic. Dove, and the body positivity community it inspired, however, “put the onus on people living in marginalized bodies to turn their criticism inward. This time, though, those people are told not to be ashamed of their physical selves, based on the premise that there was never anything wrong with them to begin with, as though the same companies that claim to be guiding this “movement” haven’t been selling insecurity for years”, according to journalist Amanda Mull.

Communities need optimism, not emotional hijacking. Don’t mine the trauma of your users for an emotional response, no matter how optimistic it may seem on the surface.

4. Surface your vibe.

Perhaps the most primal reason why people gather in communities is because of how it makes them feel, so it’s worth knowing what that feeling is and how you can surface it. Yes, we all want to feel like we ‘belong’ when it comes to community, but you have to go deeper if you want to create a memorable brand.

Vibes and feelings are user heuristics for what the community represents. In a complex world, vibes are an easy shorthand for knowing if a community makes sense or not.

Your vibe is the emotional read someone has on the brand. Lego has a nostalgic aesthetic. Nike has a distinct voice. Airbnb platforms belonging. All of these brands have communities but none of these qualities alone make a vibe.

A vibe makes someone sense something greater than what they see or read.

We’re Not Really Strangers angles everything toward its vibe. Its content, its products, its language, its aesthetic, its Instagram (and Finsta) create the feeling as if we are all waking up from a dream where we forgot how intertwined humanity is.

Quite literally, their content and brand touchpoints evoke feelings of sudden remembering, of recognizing someone you didn’t remember at first. It is a sweet returning to the human race. Yet what they sell is ice breaker card games and inspirational gear.

Vibes activate our System 1 thinking of intuition and knowing. You know a community and brand like We’re Not Really Strangers even before you understand it.

Vibes are tangential to brand relatability, a topic that my Concept Bureau colleague Rebecca Johnson has studied extensively:

“You have to find moments that tap into your audience’s subconscious. It’s about revealing something that exists at the edges of their identity […]

Relatable brands reflect their audiences’ identity in a way that goes beyond the product they’re selling. They reveal and validate hidden truths to which their audiences can connect and relate.”

Creating a vibe requires great intimacy and great vulnerability, two things which only make sense in the new era of strong ties.

5. Memorialize the good and the bad.

TITSOAK and lossporn are both memorials of the communities they come from.

If you are in either of these groups, you know that each term is a phrase of self-deprecation. TITSOAK is an absurd line that Twilight fans laugh at themselves for loving, and lossporn is the people of r/wallstreetbets memorializing the ridiculous losses and risks they endure in their larger quest to win over the system.

They demonstrate that it’s just as important to memorialize the bad stuff as it is to memorialize the good stuff. The good stuff is a great celebration of the community’s successes, but memorializing the bad stuff does something very different.

In relationship science, it’s been found that the way a couple remembers their fights and low points is a huge predictor of whether that relationship will succeed.

People who remember their arguments with anger or disdain tend to have poor outcomes, but couples who laugh about their disagreements and remember them as endearing and valuable moments of growth are far more likely to stay together. They effectively create a story around those moments. That story becomes part of their mythology.

This is no different in communities. Groups that can memorialize their failures with humor, gratitude and pride strengthen the bonds between their people. 

The failures, the goofs, the slip ups, the embarrassments and losses – they’re all valuable moments to continue building your group’s mythology.

At Concept Bureau, my team laughs at how insular our own thinking can be, and how the same topics keep coming up over and over again no matter where the conversation starts.

So naturally we created an annual bingo card to memorialize our folly. Some of the boxes like “Bonkers” and “Minnesota” reference real slip ups or all-out disagreements.

Concept Bureau’s 2022 Bingo Card

We now wear that bingo card on sweaters, tote bags and mugs with appreciation for the group.

6. Strong ties or nothing.

Most of these community examples come from organic communities, but what about brands specifically? How do they employ the same levers for building thriving, meaningful community among their people?

There’s one golden rule that can’t be violated: a community brand’s job is to create strong ties.

Organic communities on reddit or Discord naturally do this, but very, very few brands do.

After decades of culture built on weak ties, strong ties can feel risky. It’s hard to break away from the comfort of a one-to-many approach that is so common with weak ties, where a brand acts as the central voice in a brand community.

The experience is not dissimilar to a fandom gathering around a stage. Something that has immediate payoff and can easily be measured.

Strong ties, however, work very differently. A brand must continuously find ways to deepen relationships not between the brand and the people, but between and among the people themselves. 

Harley Davidson has been doing this for a long time through events, gatherings, activations and destinations that deepen and strengthen how every member connects with every other member.

The community has become the brand, and people (users and non-users alike) understand that what you are buying is much more than a bike, and much more than belonging. They are buying the promise of connection.

Other luxury carmakers work in much the same way. A Lamborghini executive once told me that what they sell is a community, and the car is simply the price of entry.

Harley Davidson and others like it work very hard to deepen the connection between each driver. Strong ties are what drive the community brand forward.

 


 

Some of these rules may feel more like business strategy than brand strategy, but a solid brand is the basis of any strong business. The two are becoming increasingly intertwined.

How far is the distance between business and brand for Tesla, Apple or Meta? What about Coinbase, ByteDance or Instacart? Squint your eyes and the business and brand begin to look the same. To separate them is a mistake.

And that is what I mean when I say community has become the new brand. As community becomes the prime offering for many companies, it is also the forefront of how their brand is perceived.

Your employee community, user community, category community—all of these groups are becoming stronger signals of brand than ever before.

Be deliberate in how they are built and perceived.

Categories
Brand Strategy Featured

A Time To Build Tight Brands In the Chaos of Loose Cultures

The one thing humans can’t handle is chaos. It’s why the Soviet Union fell only to install Putin, and the brief moment of hope that was the Arab Spring led to a familiar regime of autocrats.

It’s also why when there is a decrease in government stability, there is an increase in religiosity in both Eastern and Western cultures. In a 1978 Gallup poll it was found that 80% of people who leave their religion ultimately come back to it, and although researchers are only just beginning to study this phenomenon, I can tell you from my own work with both religious and atheistic brands, people who leave organized religion quickly become eager to replace the void with another system of meaninga dimension most atheist groups have failed to consider. 

In all of these instances, people swung from an extremely tight culture to an extremely loose one, and then curiously, back to a tight culture once again. 

No matter the magnitude, sudden freedom brings a normlessness (and in some cases, disorder) so uncomfortable that we would rather subscribe to clear rules than to wade into the unknown without any at all.

It’s a facet of human nature that cultural psychologist Michele Gelfand has studied extensively. Every culture falls on the spectrum from tight to loose: from highly structured and normative to loosely held and evolving. When a culture veers too far in one direction, there is often a reaction in the opposite direction. 

When it comes to branding in today’s world, however, we’re seeing an emerging trend where tightness is especially effective in loose places. 

It’s easy to see the value of tightness in hindsight. Tight brands like Greenpeace, Trumpism or the modern Académie Française may appear like anomalies, but they are in fact deeply humanand highly predictablereactions to loose cultures. The people in these groups felt destabilized by evaporating social codes, and in that mental state, welcomed in the strong voice of certainty. Where there is chaos, there is someone promising a new order.  

But sometimes the most destabilizing chaos isn’t on the world stage. Nor is it a public outrage or even a shared experience.

It’s found instead in the quiet chaos of our everyday lives: making a home, raising a family, putting a meal on the table. These mundane corners of the human experience are also where we find the loosest pockets of culture today: places where there is a glut of information but few steadfast rules. Where despite incredible progress and empowerment, normlessness has taken over.

And it’s in these well-traveled but chaotic spaces that a new generation of brands has stepped in to tighten the vice. 

The Religion of Food and Nutrition

In America, we don’t know what to eat, where to eat or how to eat, and the more one tries to figure it out, the more confused they can become. 

A favorite anecdote of mine is a note hidden in the comments section of a 2017 New York Times article about clean eating. A reader named Ellen, below, describes the chaos of having to cook Thanksgiving dinner for a family that has one person who is gluten free, another who is dairy free, one who is keto, and another who is low fat.

As journalist Julia Belluz has pointed out, we’ve entered the “United States of Divided Dinner Tables. We’ve shifted from a culture where everyone eats the same thing at supper to a hyper-individualized one, where guests almost certainly won’t be willing to break the same bread, or eat any bread at all.”

Generally speaking, the American diet looked much simpler up until the 1940s, when dinner tables across the country had more in common than not. 

Social propaganda films streamed into homes, telling women not only what to cook at dinnertime, but daughters how to set a table, sons how to greet their fathers before the meal, what was appropriate to talk about, and so on. Programs like this continued to proliferate onto colored screens in the early 1950s.

But after WWI, and with an influx of GIs coming home with expanded palates, things began to change. 

Soldiers had developed a taste for things like pizza, french wine and oregano (to give you an idea of how intense the appetite for new flavors was, sales of oregano in the U.S. rose by a remarkable 5,200% from 1948 to 1956). Meanwhile, post-war Americans had more wealth and began to travel, taking in the smells, tastes and methods of new cuisines. 

Suddenly, America’s new foodie culture was born and for the first time we began to see food less as sustenance and more as experience. The rules of food were breaking and an outgrowth of exploration began. Food was now an “aesthetic choice”, a decision mired in context.

Today, grocery stores carry an average of 50,000 items, but in the 90’s, there were a mere 7,000 SKUs on store shelves. That means in the past 30 years alone, we have had to navigate a shopping experience with over 40,000 more options than before. Consider the fact that in 2014 there were already 12 flavors of Thomas’ English Muffins and 19 different varieties of Cheerios, each one promising a slightly different experience. 

The problem here is not the paradox of choice. Choice can be a wonderful thing if people know how to navigate it. 

The real problem is the lack of norms around what foods are good or right to eat. 

Despite growing mountains of research, we still don’t know what the ideal diet is, we don’t know why adult onset food allergies have skyrocketed, and of all the lies that hurt any American generation, the food pyramid was probably one of the biggest. It is a plight on American health that will take decades upon decades to undo. 

Even something as simple as bread can surface how normless American food culture is. French bread is baked with limited unprocessed ingredients, with most French people living within 5 minutes of a bakery, and 50 times more bread bakeries per capita than in America.

French norms around baking bread also inform their social norms around eating it. There are strong codes around how to buy it, how to eat it, and how it relates to the larger meal that is understood among all.

American bread, on the other hand, has been industrialized, contains many ingredients that are banned and considered carcinogenic in other countries, and is only found aging on grocery store shelves for the large majority of people. 

It’s inspired a cottage industry of food activists like alittlelesstoxic and thefoodbabe who make it their job to decode food labels and expose dangerous American food regulations and policies. Yet the irony of many wellness influencers in the larger community is that in the process of dispelling food falsehoods, they often propagate other falsehoods around medicine, politics and conspiracy theories. 

In France, food norms are powerful and cohesive forces, while in the US food is simply a whirlwind of chaos. 

But the chaos begins even before our meals get to the table are served. In 2019, before Covid forced us to bake sourdough and throw together whipped coffees, people were already migrating away from eating at the dinner table. 

In a survey of 1,000 adults, it was found that 30% of people were eating dinner on the couch, and 17% of people were eating it in their bedrooms—two places where there is likely a screen and likely no conversation or interpersonal gathering. Remember that rooms have rules, and when we change the room, we create a vacuum of norms.

Scholars have also noted how fewer and fewer people are eating together, and only about half of families who live together have dinner together. As food and screens got closer to one another, it makes sense that open plan kitchens began to blend meals and entertainment even more. #Mukbang, #feederism and #foodporn made eating and watching the same thing, and the room itself disappeared.

Despite progress and an abundance of information, there is an anxiety-inducing looseness all around us when it comes to food.

Food culture has become chaotic and normlessness has taken over. 

But what is interesting is the way in which some brands have created cultural tightness by leveraging our deepest beliefs. 

Between 2016 and 2018, three lawsuits were lodged against Whole Foods and Lacroix collectively. All of them were concerned with the use of the word “natural” in their food labeling. In all cases, the plaintiffs had felt dupedthat the “natural” branded language and imagery were in fact lies once they interrogated the ingredients list, where they found confusing (at times questionable) chemicals.

Whole Foods settled two of those claims, while La Croix was able to dodge theirs when the plaintiff publicly retracted her statements. But controversy over the word “natural” is nothing new. 

In 2009, there was a spate of lawsuits aimed at food makers using the same term, including Snapple, Ben & Jerry’s, Häagen-Dazs, and Nature Valley. In fact, the FTC had tried to come up with a definition for the word “natural” as early as 1974, and the FDA has been trying (and failing) since 1991. 

These cases have been hard to navigate because the word “natural” is so much more than just a word. Author and religious scholar Alan Levinovitz has written extensively about food and language, and he reveals the larger complexity hiding under such a simple term. 

According to him, the word “natural” has become a “sort of a secular stand-in for a generalized understanding of goodness, which in religion you’d call holiness, or purity, or something like that. “Nature,” with a capital N, [has taken] the place of God. In a secular society, we don’t look to religions to tell us what to eat or how to heal ourselves, so you need a secular substitute when it comes to generalized guidance for what you can eat, and that secularized substitute is nature.”

Levinovitz has observed that many of the public comments on the FDA case to define the word “natural” take a religious tone, hundreds going so far as to refer to Mother Nature or God directly, with arguments such as, “Natural is as Mother Nature intended. No manipulation or addition by man” and “If it has anything other than what God intended then it is NOT natural”. 

It seems that defining what “natural” means, then, would be the same as understanding God’s own will.

Knowing what to eat has indeed become a godly quest. When we talk about food, we talk about “good” and “evil” foods, “clean” and “dirty” foods, “pure” and “impure” foods, and so on. (Even the Q Shaman refuses to eat non-organic food in jail, citing his religious beliefs.)

Whole Foods, La Croix and Snapple didn’t misuse the word “natural”. They leveraged it to tighten the vice in a very loose culture. They understood and surfaced what people were already starting to believethat food is not about sustenance. It is about righteousness.  

Today, highly popular brands like Lesser Evil snacks, Ezekiel 4:9 and Genesis 1:29 breads, and Garden of Life food supplements do the same thing, starting with their thinly veiled biblical brand names. True, their products may be great, but they have done the incredible task of creating a signal in the noise. They broadcast tight norms in the normless world of food, saying “Eat what is Godly.” And there are few cultures tighter than that of godliness.

If food is a religion, then diet culture is a cult (I write that figuratively but in some cases, it’s literal truth). As Ellen from Tucson can attest, Keto, Paleo and veganism have very little room for breaking the rules, even during Thanksgiving. 

Both Paleo and Keto are actually reboots of the 1960s fads of Atkins and the back-to-the-land movement respectively. 

They also both purport to be the natural way for humankind to eat (a paleo diet limits foods that became common when farming emerged about 10,000 years ago), and trace their validity back to our ancestors. Countless blogs and Reddit posts claim that a ketogenic diet was how our forebears ate for the majority of the year. An equally countless number support Paleo with the same argument. 

Both aim to take us back to some natural, purer state we’re meant to be in, and the brands in this space, like Primal Kitchen, Hu Kitchen (short for Human) and Epic Provisions play with this notion. The brand belief here is that the truth about food exists in the limited scope of the past, when we were restrained creatures, closer to Mother Nature.

To be Keto or Paleo, to eat bread from the bible, to have a pure palateeating is no longer about the chaotic world of nutrition but about the narrow confines of moral superiority. 

The looseness or tightness of a culture in a category is tied to its norms, or lack thereof. Simply having an abundance of choices doesn’t mean the category is loose. What matters is whether among those choices there are clear, culturally agreed-upon rules and guideposts that help people consistently move forward with confidence.

We’re imbuing food with incredible meaning because we don’t know which way us up. We crave these rules, subscribe to them, fall in and out of belief, but always come back to them as a source of comfort. 

It’s consistent with the reality that people buy with emotion, not logic. 

Tight brands like the ones we’ve surveyed here raise the emotional stakes for their users. They create emotionally provocative norms so that we don’t just know the rules, but feel them deep in our bones.

The Branded Plight of Family and Parenting

The American family in the American home can be such a clear image from afar, and yet a mirage of confusion up close.

It’s been well documented that the nuclear family was a lie, and statistically speaking, only existed in the majority of homes for about 15 years, from 1950 to 1965. But like most social constructs, the lie held a normative value that was especially important in America, a country that arguably has very few proven norms around the meaning of the home, the structure of the family, or the rules of parenting. 

There are no strong social codes that tell us how to parent in the US as we might find in other countries. In Norway, it’s understood that kids go to school at one year old and should be learning in fresh, outdoor air. In Japan, toddlers run errands around town unattended, and was an adorable sight that had us on the edge of our seats in Netflix’s Old Enough! In Spanish and Iranian cultures, it’s not uncommon for little ones to stay awake until 9 or 10pm because it is in the evening that the family socializes and forms bonds.

TIME, August 17, 2022

Norway and Japan’s parenting norms make sense because both cultures have agreed that childhood should be spent developing a sense of independence. Spain and Iran’s cultures hold firm conviction that childhood is instead about interpersonal relationships. And parenting norms in all of these cultures are accordingly defined. 

It’s hard to think of a single, widely accepted American norm that can be added to this list. Despite being popular and running in Japan for over 30 years, the mixed American backlash to Old Enough! revealed just how confused we are in this country, and yet how dogmatic we can be about that confusion.  

This all illustrates Amy S. Choi’s point that, “The crisis of American parenting, as anyone who has looked at the parenting section of a bookstore can attest, is that nobody knows what the hell they’re doing.” Indeed, parenting advice is a booming industry built on mountains of information cut by valleys of uncertainty.

Intimate portraits of the home reveal even more family dynamism. 

IKEA’s annual Life At Home Report shows a steady decline of comfort, trust and meaning in the idea of home. In 2016, people longed for more privacy in their own homes. In 2018 a whopping 1 in 3 people said there were places where they felt more at home than the space they lived in. In 2019 only 48% of people felt a sense of belonging in their own home. In 2020, while in the throes of Covid, 42% of people felt uncomfortable negotiating space for themselves in the home (which is probably why in that same year 38% of people found the bathroom the best place for a quiet moment of reflection.)

That’s provided that home even is home anymore. 

People are using Airbnbs as part-time housing, others are trading in homes for the #vanlife or #expatlife, and at least one couple is living from cruise ship to cruise ship because it’s more affordable than the American dream.

And all of this is underscored by a family structure that is evolving. As of 2014, America ceased to have a dominant family structure (what many of us used to imagine as two parents with 2.5 kids). Diversity and fluidity have shot up, driven by cohabitation, divorce, remarriage and non-marital recoupling. In one study over a three-year period, about a third of kids who were younger than six years old had already experienced a major structural shift brought on by divorce, separation, marriage, cohabitation or death.

Chaos abounds in this wide and relatively new space. That chaos has also ushered in tight, norm-building brands that offer rules for getting our bearings straight. 

There are currently over 5,000 Montessori schools in the US, and they are growing. 700 of those Montessori schools are public, and of those public ones, the vast majority were opened in the last 20 years even though Montessori came to the US over 100 years ago. Montessori is an alternative school format that talks about all the things parents wantsocial skills, independence, communitybut quickly moves into ideology. 

My own children go to a Montessori school and I can see a prescriptive ideology in nearly everything they do, especially when it comes to how things are described and labeled. 

Play is called “work” because founder Maria Montessori believed that a child’s play should be elevated and respected, and was in fact work that required concentration and large blocks of free time to explore independently. When kids are done with an activity they are asked to make it “beautiful” again, meaning to clean up and put things back in order. 

Classrooms only contain objects and toys made of natural materials in calming huesno plastics, logos or characters. Kids partake in practical life exercises that “resemble the simple work of life in the home: sweeping, dusting, washing dishes, etc. These purposeful activities help the child adapt to his new community, learn self-control and begin to see himself as a contributing party of the social unit.”

Montessori schools across the US post their doctrines on their websites, and it’s easy to see that this is not just a mode of education. Instead, this is a clearly defined philosophy of child raising. 

Even your neighborhood preschool is likely to have a manifesto posted somewhere, and it’s likely to read like a charter for a new parenting movement. Oakwood School in Los Angeles offers an incredible curriculum for their students, but more importantly, their philosophy goes far beyond education, calling out moral obligations, social change and the need for kids to understand “the nature of the world”.

Oakwood School – August 12, 2022
Oakwood School – August 12, 2022

It’s no wonder that Montessori is flourishing, along with other highly ideological school formats like Waldorf, Reggio Emilia, forest schooling, worldschooling, and many, many others. 

These schools focus the chaos of parenting into something manageable, tightening the vice of parenting and family with heavy norms. They know their job is not to merely educate, but to promise order in the storming mind of the mother and father. There are heavy rules to tell you when you are on the right track, and when you are not.

But parents feel the storm long before their children go to school. 

Once the Meta or TikTok algorithm figures out you’re expecting a baby, you’ll be deluged with parenting experts offering bite-sized pieces of advice up and down your feed. And you will undoubtedly learn about two schools of thought: attachment parenting and gentle parenting. 

Attachment parenting is an approach that preaches extremely high amounts of physical contact between parent and baby throughout the day and night, and high responsiveness to a baby’s needs in the form of on-demand feeding and co-sleeping, because “babies learn to trust and thrive when their needs are consistently met by a caregiver early in life.”

Gentle parenting is “a means of parenting without shame, blame, or punishment. It is a partnership between parties and both parents and children have a say in this collaborative style… a softer approach to parenting, and parents and caregivers that practice gentle parenting do so by guiding their children with consistent, compassionate boundaries—not a firm hand.”

Both brands of parenting have created incredibly tight cultures and communities, and both are arguably ideologies with strict norms and articulated principles. 

The tightness of these brands, however, really comes through in influencer content. People like dr.siggie, themompsychologist and biglittlefeelings slowly indoctrinate viewers into the world of their practices, so that they quickly become familiar with insider language like, “holding a boundary” or “connect before you correct” and begin to understand that each parenting philosophy is not simply a way to raise children. It is a way to signal your specific set of values to the world. 

People like Dr. Becky, who consults parents on modern parenting techniques including gentle parenting, talks openly about how if CEOs and athletes can have coaches and consultants that help them do their jobs better, then parents should have them, too.

@drbeckyatgoodinside

PSA: Parents deserve support. Let’s take a deeper look at this narrative in the media and start a different one – one that elevates parents so they are seen for the critically important job they are doing. How can you join this movement? Share this video. Share what you know in the comments about how much your role as a parent MATTERS.

♬ original sound – Dr. Becky | Psychologist

I do not disagree with Dr. Becky, who has personally taught me a lot. She is right in saying how we value parenthood is revealed in how little value we assign parenting experts. But what is really interesting is how she, and the vast number of people like her, are beginning to institutionalize tight norms in such a loose culture. In their online courses, membership communities, podcasts, books, practices, and social content one can see a growing tightness emerge.

They know that building normative structure around something that feels so chaotic is critical to the success of brands in this space.

Note that gentle parenting and attachment parenting come to the same ultimate benefit, but from two different angles. One can tend to induce more guilt while the other embodies a greater spirit of forgiveness. 

Don’t fall into the trap of thinking that tight brands need to create negative feelings like fear, shame or guilt, as we’ve already seen with other brands. It is a strategy, but a weak one.

I have written before that in branding, relief beats guilt, and reward beats fear. In parenting, and in other highly emotionally charged categories like climate change or even war, relief and reward will nearly always enjoy outsized gains. 

But be sure that you first understand the mechanics of tightness and looseness in your space.

There is an excess of choice in the world of sports, but our collective norms around sport and athleticism are both strong and widely understood. Personal finance is similar. There are a million apps for saving and spending, but in America we have strong norms around credit and consumerism (even more so in most other countries). 

Creating tight brands in tight categories will do little other than to reinforce a culture that is already there and accepted. Looser categories like politics, cannabis or end-of-life, however, create opportunities for tighter brands. 

But don’t just look at a category with a narrow lens. Personal finance may have strong norms in a world of abundant choice, but if you zoom out past credit and consumerism to tangential behaviors like investments and wealth, things start to change. 

We have begun to reconsider what wealth even means anymore, and as such, have begun to qualify investments with the strong “feeling that the economy is changing in ways that reward the crazy and punish the cautious”. The steadfast norm of being rewarded for working hard is starting to disappear, and in its place we see a new appetite for risk. 

Peter Zeihan, geopolitical strategist and one of my favorite thinkers, has recently raised the point that the underpinnings of the economy have broken apart. Indeed, what happens when our measurements of the economy (inflation) are no longer accurate, and our tools for controlling the economy (interest rates) no longer work?

When measurements change, rules change, and things get loose, not only in the market but in people’s behaviors and belief systems. 

A Snug Fit 

The strongest norms, in the tightest cultures, that best wield the power of branding tend to be the ones that elevate meaning so that school is about more than school, food is about more than food, and so on. 

Nearly every industry is expanding or contracting right now, and it’s worth understanding whether or not your space is loosening to the point of cultural normlessness. 

Look not only at the industry as a whole, but the constellations of businesses forming around it. 

Traditional education is a very noisy space but also highly normative. For the countless startups that have tried to sell into the school systems of the US, a very tiny fraction ever make any headway. Cultural norms at the district, school and classroom levels are so deeply entrenched, even the most obscene amounts of branding investment and innovation often fail to upend incumbent brands. 

But if you zoom out to homeschooling, supplemental education, private institutions, and perhaps even edutainment, the story is changing. As we lose trust in the institution of education, we also see a proliferation of viable options that move us toward normlessness.

Relationships and dating, wellness, and media are also categories where we see the same thinga loss of trust in institutions that leads to a newfound looseness. In some cases things may not be loose enough yet. In other cases, the looseness is already beginning to feel uncomfortable. 

Loose cultures tend to create a signature set of emotions: usually stress, fear and uncertainty. That is because threat and chaos run together, and as Michele Gelfand said in a conversation I was fortunate enough to have with her, “When people feel threat, whether it’s perceived or it’s actual, then it makes sense that they want stricter rules and stricter leaders who are going to deliver that kind of structure.”

Your goal is to create tension that forces people to move, not to create a panic that causes people to react. Although we’ve surveyed some fear-based brands in this discussion, it’s still very much a limited approach. It may produce clicks, but it doesn’t create long lasting loyalty.

Tighten the vice so people feel snug, not strangled. Find ways, either through context, belief systems or vision to tether all of the chaos down to something that makes sense of the world, that creates tension against the looseness. 

When a brand creates tension, it forces the user to act. They must either follow that brand or walk away from it, but the one thing people cannot be in the face of a tension-making brand is apathetic. 

Tight brands in loose cultures work much the same way. They force people to choose between the chaos and freedom of normlessness or the comfort and limits of a narrow set of rules. Neither one is universally right, but for an individual, the right choice is usually clear. 

That’s the magic of forcing tightness in loose places. It expedites our decision making, producing brand converts and defectors much quicker. 

With so much new dynamism coming into the markets and our lives in general, being attuned to tight and loose cultures is a meaningful way to understand how people are moving. Consider where tightness or looseness is headed in 35 years, and how the rules of today may not be enforced tomorrow. 

When things tighten or loosen, behavior begins to flow, and new behaviors mean new brand opportunities that may not have existed before.

Categories
Podcast

22: Strong Ties vs. Weak Ties in the Next Era of Brand Innovation

What happens when the world suddenly reconfigures itself around a very different kind of relationship? The last 20 years of social innovation has leaned into weak ties: distant social relationships that allowed us to trust and extract value on platforms like Yelp, LinkedIn and Facebook. But the next 20 years are already shaping up to look very different. Strong social ties, our close-knit relationships with frequent interactions, are starting to emerge as the dominant threads of the social fabric. In this new era of increased intimacy with our immediate network, what we value and what we create move in a markedly new direction. We co-buy homes with friends, form politically aligned living communities, go deep into conversational chambers and band together in vision-led DAOs. The way we relate to one another is more profound, but also more narrow. What we demand of our network communities, and the brand landscape in general, becomes more high stakes. In this house episode, we’re talking to Concept Bureau’s Chief Strategist Jean-Louis Rawlence, about the huge implications for tech innovation, community building and business. When strong ties become the future of community, community becomes the new brand.

Podcast Transcript

MAY 24, 2022

23 min read

STRONG TIES VS. WEAK TIES IN THE NEXT ERA OF BRAND INNOVATION

00:12

Jasmine:
Welcome to Unseen Unknown. I’m Jasmine Bina.

00:18

Jasmine:
The town of Grafton, New Hampshire, has a problem with bears.

00:22

Audio Clip:
Well, despite the snow today, spring is here, and the black bears are beginning to wake up.

00:27

Jasmine:
Grafton has been overrun by bears not once, but twice in the past 10 years, and bear invasions continue to be a major issue to this day.

00:35

Audio Clip:
Melissa Champney’s husband woke her up in the middle of the night over the weekend. An unwanted guest had made his way into their mud room and was unable to get out. He kept saying, “There’s a giant bear. Do not let that bear in the house.”

00:50

Jasmine:
The people that live in this small town have dealt with more than just destroyed property. They’ve lost pets. They’ve suffered actual bear attacks and have somehow fostered a population of bears that is incredibly bold, often hanging out on porches in broad daylight.

01:03

Audio Clip:
He tore off all of the sheetrock, all of the insulation. He tore down screens. He did a lot of damage.

01:15

Jasmine:
From the outside, Grafton looks like a sleepy town with some curious wildlife; but not long ago, this sleepy town was the promise of paradise for over 20,000 Americans who pledged to move there and create a utopia of sorts for people that share the same political, social and moral values, and somehow that paradise has turned into black bear hell.

01:36

Jasmine:
The chain of events that brought this particular bear crashing into this couple’s mudroom, however, is a signal of something much bigger that’s been looming on our cultural horizon, weak social ties being replaced with strong social ties and the technologies that are fueling the next wave of innovation.

01:52

Jasmine:
In this house episode of Unseen Unknown, I’m talking again to Jean-Louis Rawlence, my co-founder at Concept Bureau, about the decline of weak ties and the ascent of strong ties, how strong ties are the future of community and how community is the new brand. I promise we’ll get back to the bears in a second, but let’s start our conversation with something equally curious. What are strong ties, and why after a decade of exploiting weak ties are we moving in this new direction?

02:21

Jean-Louis:
In order to understand the era of strong ties, we first have to understand the era of weak ties, which is really the last 20 years of innovation. If you look at who are the winners in the last 20 years, it was the networks. We had so many platforms that captured value from weak-tie networks, so some examples of this.

02:40

Before the era of Yelp and before the era of online reviews, you would need to find an expert. You need to find a travel expert or a blogger, someone you could trust who would tell you how to navigate a city, for example. When these platforms came about, what happened is, for the first time really ever, we trusted strangers en masse. We trusted weak ties we had very loose connections with to tell us this is the best place to go for breakfast. On LinkedIn, these weak-tie connections, connections that we don’t really have any mutual connections with, people with hundreds of connections, they were able to leverage that value when they needed to get a new job and actually capture and extract a ton of value from a weak-tie network.

03:20

We see this with Facebook Marketplace, with all just so many different social networks. We see us extracting value in new ways even in dating sites, these loose connections, things that tie you together very loosely. Really the last 20 years, we extracted value from weak ties. I think, to borrow the analogy here, this term, strong tie and weak tie, actually came out of a linguistic study. It was a really interesting story, actually. They did a study about how language changes. What are the causes of language?

03:50

 

I think it was that the Milroy and Milroy study in Belfast, and what they found was that weak ties bring more change. They bring more information almost inherently. You have many, many weak ties. You have a lot more information in the system, and so things can change faster, but what they found is that it was the deep ties that cemented that change and made it really stick, and so, in a network that had many deep ties, you introduced a lot of new terminology. The network would adopt one of these new terms as a new piece of language. What’s interesting in this study is, if you have a mix of strong ties and weak ties socially, what happens is you end up with one dominant term, but then that changes, and you end up with a new dominant term, and so, over time, there’s a bit of an evolution as there’s a mix of information coming in and change that’s happening.

04:40

 

The last 20 years really was just us codifying and extracting value out of our weak ties, and I think especially anyone, everyone going through the pandemic, we realized that weak ties leave a lot to be desired, and really it was our strong ties that would keep us company through that experience. That created a lot of value for us, and so my hypothesis here as we move into the era of strong ties is we’re about to see a lot of new innovation happen with our closer connections with our family, with our close friends in smaller communities, and this is really where the next generation, the next 10, 20 years of innovation of capital creation, capital and value capture is really going to take place, and so a very, very different dynamic that is going to unfold here because, in a weak-tie network, what did you have? You had information. You had speed. You had change that was very, very fast and rapid, but in a strong tie era, you’ve got a depth of change.

05:38

 

I think that’s what’s really interesting. We’ve seen so much rapid change, and so I really think that where we’re moving to is a fascinating place where we’re just going to see a lot of much deeper social change and innovation and cultural change on the back of new technologies.

05:54

Jasmine:
I think we understand what a weak tie is, but, a strong tie, it’s got to be more than just people you know, better. It can’t just be like your family and friends. What is the nature of a strong tie?

06:04

Jean-Louis:
It’s really someone who’s just embedded in your network. There is an influence factor when you have a friend or a family member that is part of your social circle that you connect with frequently and you have a lot of mutual connections. They’re really part of that much tighter sphere of influence. You might be exposed to a new language through someone that you don’t know who’s shared something viral on social media, but it’s really the people that you know that you codify that new language where that’s when you start using that new language and embedding that in your identity, and so I think that it’s that distinction between information coming in and change happening within.

06:40

Jasmine:
You’re not just talking about language here. You’re talking about overall behaviors. Is that right?

06:45

Jean-Louis:
Yeah. I think the implications of innovation that’s going to get much more intimate in a lot of ways are going to be pretty profound. When you think about change, yeah, language is the most tangible, but I think we’re going to see a lot of social and cultural change especially.

07:00

Jasmine:
Let’s get into it then. What are some examples of places where we’re seeing innovation in strong ties versus weak ties?

07:06

Jean-Louis:
Yeah. I think the implications of innovation that’s going to get much more intimate in a lot of ways are One of the most obvious stories here is the story of crypto. If you look at DAOs, decentralized autonomous organizations, really what you have here, the fundamental technology, is essentially almost like a community management infrastructure with a lot of trust baked in. You can trust that you can have multiple people co-invested in the same cause, the same project.

07:29

In a much more tight-knit, intimate community, you can affect change, so a really interesting example of this. There was a comic book project someone made based on one of these crypto punks. They made a comic book, and this is a piece of cultural collateral that is owned by a community, and so it’s not of a stretch of the imagination to imagine a world we’re headed to where, Marvel, you can actually have a stake. In Thor, for example, you can have a part ownership in those characters, and you now have a tight-knit community of fans that are financially invested in this, that have a unique language, that have a unique culture and community, but they have aligned incentives. They care about this character and they want to see it leveraged in pop culture, in movies and TV.

08:12

That’s just one really interesting example, but I think there are some ones that are much closer to home. If you look at the creator economy and the passion economy, what does that look like? We’re moving to a membership model. There’s an interesting analogy, as I was thinking about this thesis here, is that, for a long time, we’ve been told find your passion, and the economic model has been you find your passion, you sell that story on social media, whether it’s YouTube or Instagram, wherever, and you get followers, you amass cultural capital through that, and you hope to turn that often through advertising into revenue, but, now, you’re finding a much smaller group of fans, and you’re building communities around these passions, and so really maybe the adage of the era of strong ties, instead of find your passion, we’re moving to an era where it’s find your people.

08:58

Jasmine:
Yeah, so this makes me think of platforms like Patreon, places like that. Is this what you’re talking about?

09:04

Jean-Louis:
Exactly. They’re really becoming community management platforms. There’s a new kind of relationship that’s starting to emerge. Sure, they’re centered around one individual, but really these are people who all enjoy whatever kind of niche or vertical that is. They’re there for the love of that thing, and so I think this is really the beginning of a strong-tie infrastructure, these micro communities which are deeply interwoven. There’s this unique language that emerges out of these much tighter networks of people. Again, the point here and the value isn’t to have large networks, almost the value comes out of having small, much more intimate networks.

09:41

Jasmine:
It makes me think of Li Jin’s whole thesis around the creator economy where you used to need a thousand people who’d be paying $10 for your service or entertainment or a content or whatever it is. Now, it’s a matter of getting a hundred people that would pay a thousand dollars each. I think that that maybe shows the contrast between the first model is more of like a weak-tie model and the second model is more of a strong-tie model. It’s interesting because the business model here implicates the social model as well.

10:15

Jean-Louis:
Absolutely. The era of weak ties was an attention model. It was built around advertising, and it looks like where we’re going is the era of strong ties as a membership model. It’s very much about having that community. When you change the economic incentives, I think you’d change all of the dynamics.

10:31

Jasmine:
Right. Those are obvious examples. Where else do you see strong ties cementing in our culture?

10:39

Jean-Louis:
I think there’s one area which is fascinating. Not many people think about this, but a shareholder should have the ability to vote on what the company does, but I think something like 30% of the S&P is owned by either ETFs or index mutual funds, and so the point is that you’ve got a ton of capital with no means to actually influence these companies, but that’s starting to change. There’s a really fascinating company, Engine No. 1, and what they’re trying to do is get their shareholders to vote on what the company should do. A lot of this seems to focus on environmental action, and actually, Engine No. 1, this fund, managed to get a few dissident board members who are going to push much more environmental action into the board of ExxonMobil. They’re actually affecting this change, and they’re starting a new precedent.

11:27

Actually, the SEC has the proposal out right now where they’re going to standardize the voting required for the companies. We’re into the proxy season now, which is when you have a lot of these shareholder voting events that happen and these talks of what the company should vote on. Again, this is something that retail investors have been far removed from, but we’re going to start to see infrastructure here, and so shareholders and activist shareholders that we’re starting to hear more and more stories around hedge funds that are really pushing specific agendas in their investments, I think we’re going to see a lot of infrastructure in capital as well in terms of acting more and more like communities.

12:04

I mean, could you imagine an investment horizon where your shareholders act like a community? I think it’s a very different proposition. You may invest in a company you don’t like because you want to change its course. It’s not necessarily a financial thing, but it’s a social obligation there. I think the impact of strong-tie infrastructure, we don’t know just like we really didn’t know what was happening at the beginning of social media the scale of change. Again, I think we’re on a whole different territory now.

12:29

Jasmine:
You bring up an interesting point, too, because that highlights the fact that strong ties aren’t just going to be showing up in new spaces in net new innovations, but places where you currently see weak ties maybe transitioning into strong tie frameworks instead. What are some of the signals that you’re seeing? Yes, there are examples of deep-tie networks and infrastructures forming, but what are some of the whole canary-in-the-coal-mine signals that might tell us that this is bigger than just some isolated incidences?

13:02

Jean-Louis:
Yeah, I think there’s so many signals, and that’s what’s interesting here is it really does feel like everything is telling us this is where we’re headed. If you look at gaming, gaming has always been on the leading edge of cultural change. You see so many behaviors that played out in gaming, and then they played out in social media later on. You can really look at that as an early indicator industry. That’s a huge industry, too.

13:24

I remember, I think it was early 2000s. World of Warcraft came out, and I was part of a guild, and it felt really cool to be part of the small community that would do raids and hang out together. I had my character’s name on their website, and it felt really cool. I really think this is the kind of world that we’re headed to where we’re part of a lot of small, tight-knit branded communities.

13:45

One interesting thing here that’s connected to this is that you’ve got a lot of top talent from large companies leaving some of the best-paid jobs out there. The CFO of Lyft, some VPs from Google leave these companies to join crypto companies, to join DAOs, and that’s why I think what’s a really interesting benchmark here is that you’ve got top talent leaving to join essentially what look and feel like communities, but the difference is here is that these are communities where, yes, there’s an element of profit sharing, but there’s also an element of control. These are people who can control the destiny of these companies not just because they’re in senior positions, but because they actually have ownership stakes. Again, the DAO is providing a new infrastructure for them actually being able to vote on how this new kind of organization arranges itself and moves forward.

14:35

A lot of these big tech companies are really starting to sweat here because these communities are becoming a really powerful draw for top talent. If that’s the case now, fast forwarding 10, 20 years, that might be the new benchmark of the kind of companies people want to belong to, companies where they have a great sense of ownership and control of where the company goes and a larger percentage of the remuneration of the company. Now, that creates tension against the old guard, traditional companies with the traditional compensation models, and the new guards of crypto companies doing a lot of these things, so I don’t think we can underestimate how strong of effect this driver of being part of a community being part of a strong time network is.

15:18

Another area that we’re seeing is in, it’s an interesting signal, but I would not underestimate it, is co-buying, which is when two people or two or more people, a group of friends, let’s say, buy a house together, whether that’s two single parents helping co-parent each other’s kids or a group of friends just getting into the property ladder and, essentially, the roommates, but they own the home.

15:40

In the era of strong ties, one of the things that you have in a small community is far more trust and, with a lot of trust, you can start to do different kinds of innovation. Just like the era of weak ties had a lot of information innovation, I think what we might see in the era of strong ties is more financial innovation. The 30-year mortgage really became popularized in the early 1950s, and it came to define the American city as we know it today. The American suburb, just life as we know it, the freeways, all of that infrastructure was built around the single family home which was really a product of the 30-year mortgage of people being able to afford and buy and incentivized in the construction of single family homes.

16:20

In this new era, it was fascinating if we saw that much disruption with the 30-year mortgage. What does the new mortgage instrument look like for housing in the era of strong ties? I think it’s quite possible we’ll get something and, potentially, fast forwarding many, many years from now, we may see a similar order of magnitude impact based on this new infrastructure. I really don’t think you can underestimate how significant the long tail impacts of these financial instruments could be.

16:50

Jasmine:
I think these are all amazing examples that lead to something much bigger, and it’s something that we talk about at our agency when we’re doing futurism sessions or trying to do brand strategy. You bring up this phrase to the team all the time. Community is the new brand. What do you really mean by that, because community has always been a big part of brand, but when you say community is the new brand, what’s the step change that’s happening here?

17:16

Jean-Louis:
I think we’re setting a new benchmark on how people navigate the world and navigate brands. We’ve been in a predominantly advertising model for brand for a long time, which is really an awareness issue, but now I think awareness is becoming maybe more commoditized and what we need instead is engagement. We need connection. There’s too much information to filter, and so communities are the benchmark of whether we can trust something.

17:42

I think there’s so many things that are going on. There’s a lot of precedent right now of brands creating and leveraging communities and creating tremendous value in doing so. Airbnb’s host community is a perfect case study of how they’ve created a community that has developed so much retention, so much evangelism and really, in effect, massively increased the lifetime value of the hosts on their platform.

18:09

We’re going to start to see that communities are really how you generate and solidify value. The challenge there is that the rules of building a community are very, very different from the rules of building an audience base or a customer base, and so there’s really new almost supply chains that companies need to build inside of themselves, new skills that we don’t have an awful lot of maturity for.

18:31

Again, with crypto companies, what’s really interesting is that it’s almost a community first proposition, value prop second in terms of actually how they capture value, and so these are companies, these are organizations that are generating a lot of expertise and really building the playbook on how to build effective communities. I think, as a lot of legacy companies like to call it, they’re going to have to start following those playbooks to build that because that’s really how you generate value out of your audience. It’s no longer attracting people in. It’s building lifetime value, building retention, engagement, loyalty, advocacy, and I think that’s where it gets really interesting.

19:06

Jasmine:
Before we get into the rules of building this new kind of community, because I think that’s the most important part, I just want to highlight again for all the brand new listeners listening, your community is your new trust signal. What you’re saying here is it’s not enough to have a Facebook group. It’s not enough to have a place where people can chat or a board where people can gather. It’s the depths and strength of the ties in that community and the culture of the community that you’ve created that tell people whether they can trust your brand or not. That’s a wildly different signal than the signals we’ve seen in the past.

19:44

Jean-Louis:
Yeah. A lot of this comes down to exactly what you’re saying. It’s trust and authenticity. Your brand tells people this is the world that we’re building. Well, now you need a community to prove that that’s actually what you are doing, because it’s so easy to manufacture the message and tell people that this is what we’re doing without actually doing that. Customers are getting far more sensitive, and how do you filter the noise? Again, it comes down to community.

20:07

Jasmine:
Having a platform with a lot of people on it is not a community. LinkedIn is not a community.

20:13

Jean-Louis:
Absolutely.

20:14

Jasmine:
What are some of the rules now for creating what this new kind of community looks like?

20:20

Jean-Louis:
I think part of it is you need to platform a conversation, and platform is an important thing. To platform a conversation means you are posing the question, but you are letting your community have the dialogue. In effect, what you have to do is give up a bit of ownership. Instead of telling, you have to listen and you have to answer the questions that your community has. Part of that is almost an act of co-creation. If you really zoom out, that’s what this looks like.

20:45

Jasmine:
What you mean is like raising the voices of others.

20:49

Jean-Louis:
It’s not about you anymore. It’s about the value that you generate, and a lot of that comes from the world that you’re building. You want people to authentically be aligned with that value, and that’s really where they start to drive identity from. Again, coming back to that notion of find your people, not your passion, a lot of that is how do you find your identity? In the find-your-passion world, your performing identity. Now, it’s the proof of that identity is in the people that you spend time with, and so you need to have that authentic passion and that value generation that really creates a sense of identity for a specific community.

21:25

Jasmine:
Doesn’t this mean though that you have to be willing to let conversations get pretty deep or to have more of a dialogue with your audience, really be able to listen and just commit so many more resources to what community building is? It just feels risky. What would you say to people who feel that when you describe this?

21:46

Jean-Louis:
Sure. So, the dawn of cultish new religions in the US, which is around the 70’s, really corresponds to tWell, I mean another word for that is vulnerability, and I think that’s really what it is. There’s an intimacy that people are asking of brands and of the communities and the people in those brands and the faces of those communities, and so I think that, yeah, companies have to be more vulnerable, but that’s the point is people are looking for that, and that’s the differentiating signal.

22:04

The companies that are not willing to be vulnerable cannot be authentic, and I think that’s where in a deluge where there’s too much information you look for those authentic signals, and that’s the whole point. It’s a new muscle, and I’m sure it’s making a lot of people very uncomfortable, but I really feel that this is the new benchmark for how brands are going to have to operate. This is the new driver of value in brand. It’s the community.

22:29

Jasmine:
By definition, does this have to be kind of flat or decentralized? Is that also a factor here?

22:37

Jean-Louis:
Yeah. I mean, I think there’s an element of flattening, but that’s not to say you kind of thought leaders that are adding value. I mean, you can have some sense of hierarchy. It’s really just a feeling of control and a feeling of community ownership. That’s a big part of it. It’s feeling my presence here as a consumer, as an advocate of this brand and as part of an invested community. It is valued and meaningful. I think that’s really the most important benchmark. I think, within that, you can have structures. Obviously, a lot of communities, take the creator economy, they’re built around individuals so that there is a sense of hierarchy there which I think a lot of times people are happy with. It’s really that they want to have a conversation rather than be told what’s happening, and that’s the key difference. It’s a different kind of experience.

23:21

Jasmine:
Yeah, and as you’re talking, I’m realizing, too, that mission-driven brands will probably not be as competitive here in this future that you’re describing as vision-driven brands. What do you think of that?

23:35

Jean-Louis:
Yeah. I think that we identify a version of the world that a company is creating is really what’s compelling and really what’s driving identity. It feels really good to have a positive impact in people’s lives, but a specific version of the future that you’re building, that’s what I think creates a much stronger community because there’s more of an identity and a set of values there, and so I’d say that the vision is really where you can create a lot of specificity, and strong communities have a lot of specificity.

24:06

Jasmine:
If you had to project forward what the signals today are going to mean in five to 10 years or maybe, let’s say, even 20, what’s some of the stuff that you are envisioning on the horizon?

24:17

Jean-Louis:
Just like social media and the era of weak ties created Coachella, it’s like a perfect output. Someone described it as a content festival that has music in the background. Really, that’s what people are doing. That is a perfect embodiment of what happens in the era of weak ties.

24:32

I think what we’re going to see is that these communities are going to start having physical manifestations. We’re going to see communities, like physical communities built up, and so there’s some really interesting examples of this. El Salvador has the proposed Bitcoin city, and they’re going to build an entire city built around bitcoin infrastructure as payments and for all sorts of different systems in the city and you’re not really, really leaning into decentralization. There’s actually a lot of movements, many of which have not been too successful, but a lot of movements in and around the crypto space embody it in physical places.

25:07

There are some communities I think in Honduras. Prospera is one, and really the whole point of this is to build a physical utopia is how they sell it. They’re creating special economic zones where they can operate a little bit outside of the rule sets so they don’t have a police force. They have a private security force. They don’t have a court system. They have an arbitration building, and they don’t have citizenship, but you have a membership and a social agreement that you have to sign. There’s going to be a lot of experimentation until we figure out how to do this right, but I think it’s going to be very, very interesting.

25:43

There’s a brilliant article in The Atlantic recently, Why the Last 10 years of the US Have Been Uniquely Stupid and, in that, Jonathan Haidt talks about how social media has diminished trust in a lot of institutions. You’re no longer allowed to speak out in dissent of something because your own side may come after you, and so I think what’s interesting here is that the offshoot of that is you’ve got lots of disenfranchised groups, these niche communities, and more and more we’re seeing that with social media with the algorithm funneling people to smaller and smaller communities where they all believe in a certain version of the truth and it’s different from another community over there.

26:21

These communities are buying up land, oftentimes, in Latin America and trying to build these communities. They’re trying to codify these digital communities as physical communities, and I think really we’re going to see a lot of that to come. Nomadland is a great example of how people are starting to think differently about how they live. I really think that the convergence of community, communal living and crypto infrastructure, there’s just a lot of values that overlap and a lot of opportunity there. I think we’re going to see a lot of disruption.

26:50

Jasmine:
What’s Nomadland?

26:51

Jean-Louis:
The movie telling the story of a lot of people who can’t afford to retire in homes.

26:56

Jasmine:
Oh, right, yes.

26:57

Jean-Louis:
They live in, essentially, communities in camper vans, but the point here is that the traditional model of retiring in your home that you’ve paid off I think is going to wane, and we’re going to start to see something very new and very different emerge out of that.

27:12

Jasmine:
Yeah. That’s another point there. We need innovations in the strong-tie arena to emerge because there are parts of our everyday lives like retirement that are literally failing. So, of course, there’d be a need for innovation there. Tell me more about these communities and community living.

27:31

Jean-Louis:
Yeah. There’s a really funny story that I think serves as a good reminder. In any new area of innovation, it takes a while to figure out how to do things well. There’s a great story of a free town in New Hampshire. A whole bunch of libertarians got together and moved into a town, and they were going to make it a libertarian utopia. It shortly got overrun by bears because everyone wanted to and do their own things. Some people would feed the bears. There was no kind of unified system of bear-proof trash storage. They didn’t build the infrastructure, and so it did not end well. Actually, it ended pretty horrifically. The bears would eat pets and attack people. Anyway, that’s a story of how not to do that, but I think that the principle remains that there are a lot of people out there who want to form these niche communities.

28:20

We’re seeing a massive rise in homeschooling. When you homeschool, you start to, it’s as a really good example of how you remove the ability to get out of your own echo chamber, and I think, especially in the metaverse, it’s going to get very poignant here of you can spend your entire week without ever meeting someone who thinks something different than you. You have the ability to do that. Now, you can order groceries. Before, you’d bump into someone the very least in these public spaces you would meet someone who might expose you to a different way of thinking, but more and more, we’re removing the need to ever bump into someone who doesn’t agree with you.

28:55

With that fractured reality, I think we’re just going to codify that in physical and digital spaces. I do think the metaverse is going to be a major force here of creating spaces that people hang out that really are built essentially around echo chambers. I mean, I think it’s going to be a really interesting question to see. Do we have a force that acts against echo chambers in the metaverse because, in our research with kids at least, the amount of time they spend gaming is really quite incredible, and so I think that the time spent around games and the social dynamics around that are really going to shape the next generation in a very meaningful way.

29:32

Jasmine:
This is the dark side of strong ties. It seems like the brighter side of strong ties is the fact that you can actually form deeper connections and more meaningful communities. The dark side of that is those communities then can become more insulated from the rest of the world. I mean, generally, it sounds like it just could possibly breed intolerance or disconnection from other groups, I guess you could say. This is an example of the divergent systems we talked about on this podcast many times before where the incentives of a system don’t necessarily match up with the goals of a system. If you had to say, between the light side and the dark side of things, how do you think this stuff will all net out?

30:10

Jean-Louis:
Well, I think there is an important biological precedent here. Dunbar’s number, from studies, it seems that when we would hunt gatherers is we would gather in tribes of about a hundred to 150, and that’s the natural limit of how many social connections we can really maintain at any one time, and so it feels like it stands to reason that maybe we are moving towards a more tribal-like society, and that’s what our natural proclivity is is we want to be in these larger tribes.

30:38

A lot of friction comes from trying to get everyone into one large tribe. Maybe that’s just not the natural disposition of being a human and so, for better or for worse, we may see that of a lot more fractured realities just because of almost a return towards our natural instincts. I think, technology has brought us away from our natural instincts and maybe, with more technology where the pendulum swings back and we return to that.

31:03

Jasmine:
For the record, that’s not everybody’s point of view. It’s the agency, but, Jean-Louis, that’s his point of view. Okay.

31:10

Jean-Louis:
Well, I think it’s an important force. At the very least, it’s really important to understand that this is a possible future. What I think is just as important here is that we’re seeing the story of communities and the story of strong ties play out in just so many disparate areas, from gaming to investing to living arrangements to entertainment to education with cohort-based learning. We didn’t quite talk about that, but that’s another huge force. Learning is really thriving around the model of cohort based learning. There’s a lot of questions about long-term retention and things like that, but it does seem that there’s a tremendous amount of value captured in creating more cohort-based learning.

31:50

Jasmine:
Isn’t all education like that right now? Don’t you graduate with your cohort?

31:54

Jean-Louis:
Well, this is in response to a lot of MOOCs and asynchronous online learning. We’re finding that just the completion rates are very, very different, and so, as far as efficacy goes, it does appear that communal-based learning is a better model. Again, we’re seeing it in so many different layers. To me, this feels like a strong signal. Obviously, when you start to project 20, 50 years out, it gets very, very fuzzy, but the general trend is there.

32:22

Jasmine:
When does it make sense to be a community brand that is focused on creating strong ties, and when does it not make sense?

32:33

Jean-Louis:
Yeah, I think that’s a really important question. With all this stuff happening, when do you make the leap? I think part of that comes down to if you want to play in culture or not, if you want to become a culturally relevant brand. For a lot of brands, it’s not worth it. Honestly, the ROI, the investment is pretty high. If you are in a maybe not as commodified space where there is just a simple value proposition with not a ton of competition, then maybe you don’t need to.

33:00

You can capture a lot of the value in the traditional models of advertising, but where we’re seeing the most competitive brand landscapes, where there’s a lot of innovation happening, where there’s a lot of change happening and, importantly, a lot of investment, investment always turns into add dollars, and so where you’re seeing floods of capital enter, you may have to play in culture in order to stay relevant and stay ahead of the curve.

33:23

I think what’s interesting here is that if we’re moving to a post-advertising economy or a model here over a very long time span, community is maybe the only thing that you have that’s truly defensible. Otherwise, you’re just buying attention, and the minute you stop paying for attention, you stop getting attention. Whereas community does have a flywheel effect. It’s a great way of generating organic engagement. It’s a great way of leveraging influence. There’s a long ROI, so when your space is getting very competitive and when it’s hard to stand out and hard to be defensible, this may be a frontier that you want to enter.

33:56

Jasmine:
I get the sense, that good or bad, something about all this change really excites you. What’s the one thing that really gets you revved up about these signals?

34:05

Jean-Louis:
Well, I mean, I think that it’s so easy to look back and not realize just how much changed and just how quickly it changed. I mean, 20 years ago, it was a wildly different experience of being a human. You could argue that technology today is an extension of being a human. I think that, if this is right, if the era of weak ties was the speed of change and the speed of information accelerated, and now in the era of strong ties, it’s the depth of change that’s going to happen. I don’t think we can underestimate just how much change is coming. I think that, as someone who enjoys the future, I find that tremendously exciting one way or another.

34:45

Jasmine:
Thank you so much for listening to this episode of Unseen Unknown. If you’re new here and like what you’re listening to, leave us a review. You can always get more of our brand strategy and culture articles, videos and podcasts at our agency website, conceptbureau.com. While you’re there, you can also sign up for our awesome newsletter. I promise it will be one of your favorite emails to receive. Thanks for really listening and we’ll catch you next time.

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Podcast

20: Ownership Anxiety, Brand Storytelling, and the Human Condition

Have you ever stopped to think about what ownership means to us as a culture? Many of us see it as an artifact of the legal system or something that’s decided in courts. We believe it is a self-evident concept that lives outside of us and isn’t really part of who we are, but rather a set of rules that affects our mortgages and our car payments.

But ownership is in fact very much a part of what makes us human.

Today and throughout history, a mere six competing stories of ownership have dictated how everything in the world is distributed. As resources have become scarcer, everyone from American homesteaders and ranchers, to tech leaders and consumer brands, have created ways to impose their own preferred ownership story in a world where what it means to “own” something is constantly evolving.

We speak with Michael Heller and James Salzman, two of the world’s leading scholars and authorities on ownership, and co-authors of the book Mine!: How The Hidden Rules of Ownership Control Our Lives to understand how the concept of ownership has been upending the brand landscape.

They explain to us how the rules of ownership change in every generation, and how those changes reveal the true brand frontier, the role of business, and most importantly, a society’s shifting values.

Podcast Transcript

JUNE 15, 2021

66 min read

OWNERSHIP ANXIETY, BRAND STORYTELLING, AND THE HUMAN CONDITION

00:11

Jasmine:
Welcome to Unseen Unknown. I’m Jasmine Bina. Have you ever stopped to think about what ownership means to us as a culture? Many of us see it as an artifact of the law, something that’s decided in courts, a self-evident concept that lives outside of us and isn’t really a part of who we are, but rather a set of rules that affects our mortgages and our car payments. But let’s take a moment to consider this through the lens of a familiar story in the Bible.  

00:37

…. the fourth river is Euphrates, and the Lord God took the man and put him into the garden of Eden to dress it and to keep it. And the Lord God commanded the man saying, “Of every tree of the garden, thou mayest freely eat. But of the tree of the knowledge of good and evil, thou shalt not eat of it, for in the day that thou eatest thereof, thou shalt surely die.”  

01:03

Jasmine:
We all know what happens next. Adam and Eve eat the forbidden fruit from the tree of knowledge and they’re kicked out of the garden of Eden. But what’s interesting is that if you listen closely, there is an ownership story at the heart of this passage. God says, “That fruit is mine and mine alone. You can’t have it. And if you take it, there will be consequences.” That ownership story is how humanity begins. 

01:29

Ownership is in fact very much a part of what makes us human. It is not a system relegated to the law. As resources have become scarcer, everyone from early American homesteaders and ranchers, to today’s tech leaders and consumer brands, have created ways to impose their own preferred ownership stories. In this week’s episode of Unseen Unknown, we’re speaking to Michael Heller and James Salzman, two of the world’s leading scholars and authorities on ownership, and coauthors of the book, Mine! How the Hidden Rules of Ownership Control our Lives. 

02:01

They reveal to us how the rules of ownership change in every generation and how those changes reveal the true brand landscape, the role of business, and most importantly, the society’s shifting values.

02:16

Michael:
Think when was the last time you were in an airplane. For me, it was a while ago. When you lean back and the person behind you says, “Hey, you’re in my lap.” What’s going on there? You’re both claiming that wedge of space behind the airline seat. When you’re each saying, “That space is mine,” what each of you are doing, the person in front leaning back and the person behind you who is squished, you’re each relying on, it turns out, one of six simple stories that everyone uses to claim everything in the world. 

02:44

When I lean back, when I press that button, I’m using the attachment story. It’s mine because it’s attached to something mine, the back of that seat’s attached to my seat and that space is mine. The person behind is saying, “Hold on a second. I had the space first.” First in time. That’s the second primitive powerful story. The person behind is also saying, “I possess that space. That’s where my laptop is. That’s where my knees go.” Possession is nine-tenths of the law is a third of those six simple stories.

03:14

So right there, when you lean back on an airplane, that’s already three of the six simple stories that everyone uses, attachment, first, and possession. The fourth story is labor. It’s mine. Why? Because I worked for it. You reap what you sow. Fifth story, it’s mine because it comes from my body, our bodies ourselves. The sixth and final story, it’s mine because I’m in the family, birth and death, marriage and divorce. That’s when big amounts of property really move.

03:46

That’s it. The three simple stories when you lean back, labor, our bodies, and our families. And that’s it, all ownership conflicts. Everyone fighting over everything is a fight among those six simple stories.

04:00

Jasmine:
What’s interesting is that you call them stories. There doesn’t seem to be any innate, fundamental truth behind ownership. These are all competing stories, the way you describe it.

04:10

 

Michael:
Ownership is really a storytelling battle. One of the real message, one of the real points for us to write in this book is to have people realize that ownership and who gets what, basically, who gets what in the world isn’t something for lawyers. 99.99% ownership disputes, who gets what and why, happen outside of the law. What’s going on there is I’m telling a story for why it should be mine, and you are saying another story for why it should be yours. 

04:36

Our kids are saying stories in the playground. “The shovel is mine because I had at first.” “No, I’m holding onto it.” And that’s always what’s going on with every battle, not just in the playground, but also for climate change and who owns wealth in America. It’s the same simple stories. They really are that, just attempts to be persuasive over who gets what and why. 

04:57

James:
The other thing to realize is that this goes way back. Really what we’re talking about is who gets access to scarce resources. It’s not just humans. I mean, birds. When you go out and you hear the wonderful birds chirping, they’re not saying, “Oh, wonderful. So happy to see you, Jasmine.” It’s not like a Disney film. What they’re actually saying is, “Back off, buddy. This territory is mine.” And it has to be that way. 

05:20

Jasmine:
Yeah. It’s interesting when you bring up the airline story because, as you guys have described in the book, the airline is really selling that space twice. And they could easily just make a rule, like who does that space belong to? But they choose not to do that. What are some ways that brands play with ownership stories, or manipulate ownership stories, or maybe don’t even tell ownership stories in order to create the behaviors that they want among their consumers?

05:47

James:
Let’s take another airplane story, and that’s Southwest. Southwest has open seating. Basically, it’s first come, first serve. Depending on when you sign up, 24 hours, you’re either group A, B or C, or you can just pay a little money and be in the early bird. There’s this huge debate that’s arisen, really conflict that’s arisen over what happens when someone in group A goes in and then saves a seat for riff-raff in group C. Fights break out over this. They’re actually on the bulletin board for Southwest. There are these raging back and forth. USA Today has written about this.

06:23

Southwest knows this is happening. They tell the attendants, “Don’t get involved.” They could clearly solve this. They could have a rule that says, “No saving seats.” They could rule, “You can save seats. No saving seats in exit rows.” They could do any of this. They don’t. Why don’t they? They don’t because they expect that us, the passengers, are going to work it out amongst ourselves. We’re going to rely on politeness, and customs, and good manners, and such, except when we don’t.

 

6:50

But thing that’s fascinating, and it’s true both for Southwest and for that example we started with, with the reclining airline seat, the one actor you don’t blame is the airline, when in fact they’re the ones who are creating this problem in the first place. It’s even worse, to go back to the original reclining seat, because the airlines have reduced what’s called pitch. That’s the distance between the seats. One inch of saved space is equivalent to adding an entire row the airline. It’s real money that’s involved.

07:19

We didn’t use to have fights of whether you can recline your airline seat, in part because the seats weren’t so close together, and in part because the space itself wasn’t so valuable. Now it is. We use the space differently. Laptops are now our entertainment centers, our workspaces. And so, the space is more valuable, it’s tighter. But we blame each other. We don’t blame the airline.

07:39

Michael:
From the ownership perspective, what’s going on here is that airlines are using one of the most advanced tools of ownership design that we reveal. This particular tool is called strategic ambiguity. Ownership is ambiguous a lot more often than people realize because there are these competing stories. People don’t realize ownership is up for grabs. And the airlines know this. They take advantage of our innate feeling that we want to just work things out. We don’t want to be the bad guy.

08:05

So it’s that wanting to work things out that lets them sell that space, sell that wedge of space twice at every seat on every flight. Strategic ambiguity is just one of the really important tools that we’ve identified that leading edge brands use to profit from what we call ownership engineering.

08:24

Jasmine:
That’s so fascinating. We’re all competing over scarce resources, but I think people like me feel like, “Well, we’re living in modern times. Resources aren’t scarce like they used to be.”

 

08:34

Michael:
Well, if you think back to the origins of America, the discovery by Europeans of the continent, and then the conquest of the people that were already living here, all ownership in America, every single piece of land, the place that you’re standing right now, place that you live, every plot of land in America traces back to a seller who sold it to you, who bought it from someone else who sold it to them, and then traces back ultimately to conquest.

09:00

So what you see in America, and what you see actually for every piece of land everywhere in the world is the playing out of these ownership stories, “It’s ours. Country is ours. The land is ours,” versus, “Land is ours because we labored in a particular way to make it ours. We labored to cut down trees, to clear the fields, to plant in rows, to basically make new England look like old England.” So the origin of ownership in America, the origin of ownership in the world always traces back to these same few simple stories.

09:32

As land, or airplane seat space, or your online clickstream, the record of your likes and looks online, whenever any resource becomes scarcer, anything, and that is everything, people fight over it. 

09:46

James:
One of the other aspects of this that I think is fascinating is how technology changes this. Think back to the Westerns we all love to watch the limitless vista of cattle, with the cowboys and the doggies and stuff, that only existed for a few decades in America. Actually, those cattle drives were over private land, going from the ranches to the railway stations. They could basically ship them off Chicago and such.

10:10

Why was it over private land? Well, because there was no way for the private land owners to keep the cattle out. Cattle don’t care. Cowboys probably couldn’t read, or if they could read, they’re not going to care anyway. What changes all that? Very simple invention, barbed wire. Joseph Glidden invents this. All of a sudden, you have a way to inexpensively enforce your property rights. 

10:31

Barbed wire really is the fundamental reason that we see so much agriculture in places that used to be pure ranching. They’re the range wars that they talk about. These were very real and dangerous fights, and technology, ownership technology was at the heart of it.

10:49

Jasmine:
What is the equivalent of barbed wire for our age today? Have we seen something as impactful as that?  

10:56

Michael:
Yes, very much so. I think of our cell phones as being the barbed wire of our day. Barbed wire is what created the “No Trespassing” version of ownership in America, the version that said, “The attachment story wins over the possession story of the ranchers.” Your cell phone is the technology today that lets you buy a stream of services. You press the button and a car comes, or you press a button and you get an apartment. So that shift to the micro payments, to being able to track things, that whole ability to organize our lives around a new technology of ownership. 

11:33

The cell phones are important in the sense that they’re quite a lot of actual technology in there. But what’s under-appreciated is the transformative effect they have in the kinds of ways that we can fight over and divide scarce resources. We can divide them up in ways that we never could have done even a few years ago.

11:50

Jasmine:
It’s so interesting to see over and over again that it’s the same laws, no matter how much the world changes, that we always go back to, to figure out how we’re going to deal with this brave new world. I know that you guys talk about how a lot of our ideas around ownership are changing. They’re under attack. Culturally, why, as a group, are we starting to renegotiate these six laws?

12:16

Michael:
They’re all in flux, and they always have been, all the way back to the Bible and they are still today. But one of the thing that’s most visible right now is the change in possession. Possession is nine-tenths of the law. We’re wired to have a very actual physical, tangible reaction in our brains when we hold on to something tangible and physical. You hold a mug, it becomes worth more to you than that same mug was worth just a moment before. 

12:43

That’s why the Apple stores are these open scenes of tests. They want you touching this stuff because you’re actually willing to pay more once you touch it. It’s why car dealerships have test drives. They want you to be physically connected with the stuff. So retailers already know the importance of physical connection. What’s changing most rapidly of the six stories today is the move to an online world where retailers want to evoke that primitive feeling of connection. 

13:12

But it’s very hard to do in the online world. So that’s why, for example, Amazon has that little shopping cart and why they have this “Buy Now” button that’s highlighted. What they’re trying to do is to basically have you have that feeling of when you actually buy a book and bring it home. They’re saying downloading a book is the same. You can buy it now. The reality is that your online life isn’t what you actually think it is. The “Buy Now” button doesn’t mean what you think the “Buy Now” button means.

13:43

When you click that to download a book, Amazon can, and indeed has, deleted books right off of people’s Kindles, just like Apple has deleted movies right off people’s devices. Online you actually own more like one-tenth. Possession is not nine-tenths anymore. That gap between nine-tenths of the law, that feeling that we have, and the reality of what you actually have, it’s one of the biggest shifts that people don’t realize about what it means to move to an online world.

14:10

About 90% of people believe that buying something online is the same as buying the physical version of it, and that’s not true. Because of that gap, Amazon and Apple, they each earn an unearned, an extra premium and extra profit on every single download because we think we own more than we actually do in the online world.

14:34

James:
Take one example. If you hold up your iPhone, I mean, this is pretty amazing. What you actually own, you actually own a plastic brick. But what makes the iPhone valuable is the operating system. You don’t own that. It’s the data on your phone. You don’t own that either. It’s stored for you. As Michael said, we’re not wired to think in terms of ones and zeros, so these intangible forms of ownership. We’re used to thinking about horses, and horse shoes, and the clods of earth they run on.

15:06

And so, there’s this real shift that’s taking place, and folks don’t get it, in the sense that we’re just not wired to think that way, and retailers obviously realize that and try to make the online experience, as Michael said, as similar as possible in the setup to actually just being in a store.

15:24

Jasmine:
Yeah. Also in the book, you guys roll the dice forward and you say, “I mean, what happens in a world where we don’t own anything?” And if you think about it, so many of our communities historically have been focused around shared ownership of something, I own a home, you own a home. We’re in the same neighborhood. There’s a camaraderie there. What’s your take on where this is all going in terms of the culture around community and how we gather?

15:50

Michael:
I was in a Airbnb two summers ago in Barcelona, downtown Barcelona. It was wonderful. I loved… So a wonderful city. But what I realized, on the streets, was that nobody spoke Spanish, or Catalan, which is actually the language in Barcelona. But what they were all speaking was German, and French, and English. Basically, downtown Barcelona has been taken over by Airbnb so that the ability to have a neighbor who is going to help you out when you’re sick or someone whose door you can knock on and borrow a cup of sugar, intact communities, is disappearing, that we’re moving to a new kind of living together world where the strength of ties that underlies…

16:35

The little league team, or the Cub Scouts, or the Brownies, the sense that we’re more than just ourselves, that we’re part of a community is starting to fray, not because of big partisan politics, but because of the hypermobility that comes from living in a streaming world, a world where you stream residences rather than in a stock world, the world where you own and stay put for some longer period of time.

17:02

There’s an optimistic and a dystopic version of where we’re going with the move to an online ownership. The six simple stories don’t change, but the technology does change and the culture changes with it.

17:16

Jasmine:
Do you think people realize that we’re actively making this trade-off every time we buy into these shifting notions of ownership, or not quite?

17:23

Michael:
No one realizes this. So much about ownership is that it’s a language that we speak. It’s a language that we’re socialized into as small children, and we don’t even realize. We are like fish swimming in the ocean and we don’t realize that we’re actually in water. The water are these rules, these stories, these practices about who gets what and why, the way we defer to each other, all of that shapes every minute of our lives.

17:49

It’s how you stand in the line to get a cup of coffee. It’s how you line up to get gas for your car. It’s where you live. It’s what you drink. It’s the medications you take. Everything always, all around you, is being shaped actively by people who know how to use these simple stories to get what they want. It may or may not be what you want.

18:10

Jasmine:
Let’s talk about ownership of communities in the digital sphere. A lot of interesting things have happened recently. The New York Times abandoned their Facebook cooking group because the culture got so toxic, they decided to just throw their hands up and walk away from it. You have apps like Telegram famously picked off the app store and then sued for not kicking them off the app store sooner.

18:31

New apps like Clubhouse, where there’s been a lot of chatter about ethically and morally, what does a platform or a brand like that owe to the safety of its users? A lot of this is signaling, how much does the brand really own when it comes to community? What’s your thought on that? Where is this going?

18:50

Michael:
The baseline here is that the app or the service that’s selling you that service owns the content on it. So it’s not a first amendment issue. It’s not a free speech issue. If Telegram says, “You can say this,” then do your complaint is with Telegram. They say you can’t be on it, your complaint is with Telegram. If they delete your tweets, you didn’t own them in the first place. So online, it turns out, you own much, much less of your digital life, which for many of us is our real lives, than people believe that they own.

19:22

All those Facebook posts and likes that you’re making, Facebook owns them and Facebook profits from them. You don’t pay to use Facebook. The reason is that you are the product. You’re not the consumer. They’re selling everything about you to advertisers, so they can target you more effectively to sell you stuff you may or you may not want. So who owns communities online? Not you is the answer.

19:49

That has a very profound consequence for what your life is going to look like. When people used to pass away, they would leave a trunk of old love letters or diaries, some tangible record that they had lived a life and they had loved, and they had been connected to people. Today, all of that potentially disappears. There’s no tangible record of the most intimate thoughts that you had beyond those controlled by companies that may well not have your interests foremost in their minds.

20:21

James:
There are these shifts taking place. I remember very well I moved about five years ago. I’d been at Duke for over a decade and then moved out to the University of California, Santa Barbara. I remember going through my Duke account, which is going to close, and printing out some of the emails. It just felt weird to do that because I don’t have the journals or the letters. There’s this very incomplete and awkward attempt to recreate what Michael is talking about.

20:46

Michael:
On the other hand, there’s also a panopticon, this notion of the all-seen eye, which is that much more of our lives are being recorded online than ever would have been put into our diaries. What that means is potentially, if you do pass away, for example, whoever does have access to your Facebook account can learn all sorts of intimate details, not just about you, but about all the third parties that you were interacting with, whose privacy would very much have been protected in a pre-online world.

21:15

Because was one of the questions for our day is, how do we think about this enormity of information that is being kept around for us? Not just the specific letters that we want to write, but every email, every tweet, every direct message, all of it is being saved in ways that are very much outside of our awareness, and to some extent, outside of our control.

21:39

Jasmine:
This leads me to another thing that I thought was very interesting in the book, which is this quote. “There’s an important difference between natural and virtual resources. So far, governments have not been driving ownership online.” Can you describe that a little more?

21:54

Michael:
Right. Think about kids fighting a playground. They’re saying, “Mine, mine, mine.” Psychologists have studied those fights and it turns out that whenever you hear that, toddlers four-year-olds, five-year-olds, they’re fighting about a shovel, or some food, something tangible. They’re never saying, “Mine,” about a joke or a story. That division goes back to the notion we were talking about before about the change in the idea of possession from nine-tenths to one-tenth.

22:22

The online world was never thought to be property. We had things called patent law and copyright law. The notion that there’s something called intellectual property, it’s actually a fairly recent ideological invention by patent lawyers and copyright lawyers to try to get people to think about our intangible lives, our online lives as being like our tangible ones. Most people wouldn’t ever shoplift a CD or a DVD, but when Jim and I poll our students, these are law students. 100% of them illegally download and stream books and movies and music.

23:00

So we have a really different sense online about what it means to own things. That’s been driven substantially outside of law. Governments really have not taken the lead in trying to think through what ownership should look like in the online world. It’s been driven much more by businesses trying to tell these stories about labor, “We worked for it, and therefore it’s ours.” Or sometimes the opposite, “It’s ours, but we want you to steal it.” That’s the magic of HBO. HBO actually lets… It tolerates, even encourages, people to steal their passwords.

23:39

All of our students use passwords that mostly aren’t theirs. They’re using somebody else’s HBO account. It turns out HBO can find you. They can find out who you are. But they choose not to. They actually far prefer for people to be stealing because it builds future consumers. HBO uses password stealing as another advanced tool of ownership design. Like strategic ambiguity for airlines, they’re using a tool there called tolerated theft, because tolerated theft helps build their business. This is mostly happening outside of the law.

24:14

James:
What’s fascinating is that Netflix is having second thoughts. Some of your listeners may have noticed on Netflix recently, there are messages coming up saying, “Just to remind you, you’re only supposed to use this within the same household.” And it’s a beta. They haven’t decided yet whether they want to crack down or not. 

24:31

Michael:
Yeah. HBO and Netflix, they’re long-term players, and they’re thinking ahead. What they want is for you to feel that you’re stealing just a little. Like when people use somebody else’s passwords, all our students, we know it’s wrong. We know we shouldn’t be doing this. That’s the feeling that HBO wants you to have, is to… People do it. They don’t want to pay right now, but they know that they’re doing something wrong. What they’re actually doing is actually committing a federal crime. It’s actually punishable by up to a year in jail to use somebody else’s password.

25:03

But HBO wants you to be vaguely aware that something is a miss, which is part of this longer term strategy to have you feel, to have your brain react, if this is possible, in the same way it reacts to the mug that you’re holding onto, to light up in the same way, to feel that copyright is like property, not just some ephemeral construction in American law. It’s an uphill battle for them. It’s why they have those… When the movie starts, the lights go down and says, “Piracy is not a victimless crime,” those scary Interpol badges.

25:38

What they’re trying to do is get you to feel that what you’re doing is stealing. That’s part of trying to have you assimilate or to analogize intellectual property, intangible property, to good old-fashioned hard, physical stuff. So they’re trying to figure out how do they activate those ownership instincts in an intangible world.

26:01

Jasmine:

Going back to the intellectual property thing that you were talking about, patents are being filed at a dizzying rate. I think the patent office in the US is struggling to keep up with tech eating the world. It seems like IP is never going to slow down. What’s the end game here? Where is this going to end up?

26:19

Michael:
Well, there is a phenomenon, actually, that I discovered about 20 years ago, which is a concern. I call this phenomenon gridlock. Gridlock arises when there are too many owners of the same thing. Paradoxically, when there are too many owners, it means scarce and valuable can be wasted, can be destroyed by being underused. The most important examples of this out in our economy today turn out to be in the area of patents.

26:48

It used to be the case that when a scientist figured something out in their university lab or government funded project, they just published it. The way that they got rewarded was that they got famous, maybe they won a Nobel prize, they got tenure. But all the basic knowledge you needed to make to put pills in bottles, all that basic knowledge was available for free. The scientists didn’t patent their discoveries, by and large. The drug makers did. But the basic tools they used to make drugs were all available to everyone. We all built on each other’s shoulders when we created.

27:18

Starting about 40 years ago, America switched to a new strategy, which let people patent really basic tools for science, all the stuff that we need to actually do research. Now if you want to put a pill in the bottle, you have to collect potentially dozens, or hundreds in many cases, of separately owned patents, and each one of those patent owners can block you

27:36

Jasmine:
Why did we make that switch 40 years ago? What happened?

27:38

Michael:
It was an illogical moment. That was when President Reagan was elected after Carter, and it was right at the very end of the communist countries regime as they were starting to fall apart. There was a real push in this country, a very heavy ideological push originally, but eventually it became an American push towards privatization, the notion that government couldn’t fix things and people should be more incentivized, motivated to do them on their own.

28:06

But if you really want scientists to be turbocharged and do basic science, the way to do that isn’t to have university science, is to have private science, to have biotech companies pair with professors as they’re doing their research. Indeed, the biotech revolution was started in this country. So having more patents available did lead to hundreds of billions of dollars of private money pouring into basic science research. So there was a tremendous amount of value from having that.

28:32

But what was missed, what was overlooked in that rush to privatize was one of the hidden rules of ownership, which is that too much ownership can be as costly as too little. So we ended up with, in the ’90s and the last several decades, is having way, way more patents, way more ownership of upstream or basic, the basic tools that you need to do science. But that’s led to actually fewer pills in bottles, fewer downstream, fewer actual treatments for disease, because all those upstream owners in certain areas block each other.

29:08

They each want to get a share of the profits from the ultimate treatment. If everybody wants the full profits from that treatment, there’s no deal to be made and the resource never gets discovered.

29:21

Jasmine:
I think one of the bigger questions around ownership lately, that’s been top of mind for people like me is NFTs. Like what do you actually own with an NFT? Why is this a phenomenon now? I feel like it signals a lot about our culture, but I’ve never really thought about it from an ownership perspective. What does an NFT mean about our beliefs about ownership, especially since you could argue the most valuable NFTs are the ones that have been already the most consumed by our culture?

29:48

Michael:
Just to explain to your listeners, an NFT stands for a non-fungible token. Your Bitcoin or your Ethereum, those are fungible tokens. One Bitcoin’s the same as any other one. A non-fungible token, an NFT, is a unique identifier. It uses the same blockchain technology that Bitcoin does. But it uniquely identifies something out in the world. What that thing often is, is some digital image. Could be the Beeple image that sold for $69 million, or LeBron dunking from an NBA top shot image.

30:19

And then NFT says, “I, the owner of this NFT,” on the quote unquote… I’m putting this in air quotes for your listeners, “The original of that image.” Now, all of us right now can go and download the Beeple image, or the LeBron dunk. One of the things about online art is that it’s exactly perfectly copyable down to the pixel. There’s one original Mona Lisa and a lot of college dorm posters. For online art, every image is exactly identical to every other one.

30:51

This has meant that online art has been one of our most democratic and innovative spheres of artistic endeavor. What NFTs do is they basically are designed, I think, are laser targeted on killing the creativity and value of digital art. For me, what NFTs do is bring together the worst of art and the worst of blockchain. They’re enormously energy consuming to prove that this is the original, all for the purpose of making art worse.

31:23

What NFTs, I think, emerged from is partly a response to the pandemic. It’s the attempt to impose artificial scarcity. It’s creating the artificial scarcity not for the benefit of art, but for the benefit of a handful of early adopters, the traders who got in first. Here would be my question for those of you who are thinking about investing in NFTs. Is there a secondary market for NFTs? That is, does anybody buy a used NFT?

31:52

The answer I believe is going to be that we’re not going to see that kind of secondary market. And I worry about being the person left holding the bag when this NFT market collapses, which I believe it will.

32:02

Jasmine:
Yeah. Talking about things born of the pandemic, I want to know how you guys have seen the pandemic possibly change our thinking around ownership, or forced questions around ownership. One thing that came to mind for me was a lot of companies are asking their employees slowly to start coming back to the office. You hear stories about employees saying no in large numbers and putting pressure back on their employers.

32:28

It raises this question of, who owns or how do you own the employee’s time? What are you seeing either in there, in that example, or anywhere, anything that’s happened in the pandemic, that shows pressure or change around our ideas of ownership?

32:45

James:
Well, part of it, I think, you can see in the commercial real estate market, the idea that do you actually, if you’re a company, do you have to own physical space for your employees to get together? I think there’s going to be, as these leases end over the next few years, there’s going to be a real shake-out, I think of what commercial real estate even looks like.

33:04

I mean, I’m seeing with law firms right now, they’re moving to shared office spaces. In a sense, you get this Tuesday, Wednesday, the other person gets it Monday, Thursday. Someone else gets it Friday. So this notion that we have to have this communal meeting place in very high-price location, I think is up for grabs. Now, as we said a number of times in this shift to the virtual economy, something is lost. I feel for young professors who are just starting to teach right now because they’re not making personal connections.

33:35

I mean, Michael and I met at a workshop I don’t know how many years ago in Montana, and that formed this lifelong friendship. That wouldn’t have happened if we had basically been relating to each other via zoom. So some something is lost. But my view is the whole notion of the workspace as something that a company has to own because they’re a company, I think that’s up in the air.

33:57

Jasmine:
When I look at the way you guys describe ownership. I see it as an image of resources going into the hands of many to the hands of the few, then back to the many hands. It just feels like ownership moves resources in the world between the many and the few. I think that’s what’s happening on a cultural level when it comes to work, because you’re seeing more and more things where employee groups, activists, and playgroups, like what happens at Google pretty often, where people arise up and say, “Hey, we don’t appreciate this part of corporate culture.”

34:30

When the pandemic happened and Google was treating their full-time employees and their contract employees very differently, like two classes of employees, full-time employees stood up and protested that and they caused change. It’s why we’re seeing a lot of unions forming too in a lot of places that you wouldn’t expect, like in the tech world. It feels like they are working to take culture back from the corporation, like, “You don’t get to determine the corporate culture here. We get to determine it.” I see ownership changing on the social plane like that.

35:01

Michael:
One change or one deep battle in the world of the corporation and corporate culture, is who the corporation ultimately is intended to serve. In the last generations, we’ve moved, in this country, very strongly towards a stockholder value model of who owns the company. Who is the ultimate owner? It’s the people who’ve got the leftover money, the people who have the leftover money after salaries are paid and after rent is paid, and those are the stockholders.

35:31

The theory of the American corporation has largely been the theory of the stockholder owner. And there’s been real pushback against that, which I think the pandemic is highlighting. The move towards more employees’ say and what their workspace looks like is a different model of ownership. Sometimes it’s called a stakeholder model. That’s been much more of the model in Europe historically. In Europe, a lot of decision-making around the flow of work that affects workers is made by a council that includes both representatives from the management and representatives from labor. So they decide together.

36:09

You’re beginning to see more of that in this country as well. Not that long ago, a new form of company was created called a B corporation, a benefit corporation. You sometimes see a little B on the side of your organic milk bottle. That’s a new form, a new structure of ownership where the company is explicitly committing to a stakeholder model, to a model that concerns neighbors, and workers, and the community, and the planet, along with the residual shareholders.

36:39

What we’ve seen in the world of corporations of series of shifts, historically, from old British shipping companies that were organized a certain way 15, 16, 1700s, up through the stock corporation. Now you’re seeing versions of corporations that have more attention to employee concerns. You see that with employee stock-owned companies, ESOPs, they’re called. You see that with cooperatives, companies. There’s been a lot of, for example, dairy farmers are organized in cooperatives.

37:10

You see that in benefit corporations. But you also see that even in the core American corporation, the Exxons and the Googles, that are having to compete in an environment where ownership of the firm has a range of models. They have to compete for employees against firms that have a different notion from the stock notion. That is part of what creates the pressure to be more responsive to the ownership of our most valuable resource, the most valuable resource that each of us has, which is our time and attention, like what we do during our day.

37:44

People are beginning to realize that they’re often selling that out too cheaply and giving up too much control compared to the life they actually want to lead. That sense of like, “What does your day look like? What does your work day look like?” That’s structured entirely by the ownership rules of the workplace that you’re a part of.

38:04

Jasmine:
Something that keeps coming up for me is, what comes first? Does culture change first and then the law is an output of that, or does the law change first and then culture adapts? Especially when I think of things like the experience economy, which I think was coined over 20 years ago now. As millennials started to focus more on experiences over ownership of things, and this was well-documented and we de-emphasized the value of ownership.

38:32

Then you start to see new models like the sharing economy, like what is it? Is it the chicken or the egg, especially in the digital world where you have companies that are basically playing in the clay of the law unhindered because there’s no government interception there. What do you think the order of this is?

38:48

James:
It’s an excellent question. The answer’s both. In many instances, law reinforces and reflects norms and customs, and that’s why the law usually… We know usually what the law is, actually. And it’s not because we studied statutes. It’s because we know that’s just the way we operate. However, laws are written by legislators, and legislators can be influenced. And so, there are a lot of examples. We talk about them in the book in terms of how copyright extension keeps going on and on and on and on. The lawmakers, I want to say, bought and sold, but lawmakers can be influenced, and they’re setting these rules.

39:31

For example, turns out there are separate rules for if you’re super wealthy, or if you’re not. If you’re super wealthy, you put your money in South Dakota because South Dakota’s legislators have essentially been told, “These are the rules the super wealthy want in order to park their money there.” We don’t know about it. What you want to call it, the chicken or the egg, is up to you, but that’s the model of basically the rules of ownership being written by very few for their specific benefit. And there are a lot of stories like that.

40:04

Then there are the other stories, the basic reflect, first come first serve, possession’s nine-tenths of the law, aphorisms that we learn as small kids, and then by and large tend to be reflected in the rules that we have around us.

40:19

Michael:
I would push back a little bit against your question as well, the notion that younger folks are done with ownership and they’re all about sharing. Oh, that’s not right. That’s very much what the sharing economy companies want you to believe. But the truth is not that we’re at the end of ownership. What we have moved to in this country is the hyper concentration of ownership. When you’re streaming something, it’s a handful of companies that control access to those resources, whether it’s Rent the Runway for a wedding dress, or your Uber or Lyft, or Apple or on Amazon.

40:51

What we’re seeing is the hyper concentration of the ownership of the resource and the control and the decision-making around that resource. And then the giving out some little twigs and branches and little bits and little leaves of ownership license to you. But it’s a license that they can pull back and they can say, “You can’t have this book anymore. We’re not going to offer it anymore. No, you don’t pay your bill, all your photos disappear.”

41:16

So it’s not the end of ownership. It’s the end of you having ownership. What you have is a stream of services so long as you can continue to pay.

41:23

Jasmine:
A big question that I had in my head while I was reading the book was, what do you guys think about suspending vaccine patents?

41:31

James:
This is the long-standing debate. I work in the environmental field and you can go back to the 1980s when the ozone hole was a huge concern. These companies like DuPont were developing these refrigerants, chemicals that would still run your air conditioner and your aerosols and such, and your freezers, but that didn’t destroy the ozone layer. A treaty was developed to address that. One of the sticking points was, should those patents be shared on a non-commercial basis with other countries, with developing countries?

42:08

The treaty kicked the can down the road. The companies basically said, “Hey, we’re not charities. We have business models that we have to meet.” Same thing with climate change. Renewable energy technologies. There’s other low-emission technologies. Shouldn’t we make them much more available, much cheaper, much more accessible to developing countries? It’s the exact same conflict. It’s the same thing we see right now. With the COVID vaccine, it’s not clear they’ve lost. Biden said this should happen. It’s not clear what’s going to happen.

42:39

But this is the first time that they’ve really been challenged seriously in the United States on this. Internationally, it’s always with environmental, India, Brazil, China, to a degree saying, “Give us these technologies on a preferential basis. You want us to help prevent ozone depletion, you want us to help battle climate change? Okay. But help us.” Companies, US, European, say, “Not so fast. That’s not our job.”

43:06

Michael:
This goes back a long time in the biomedical patent area as well, when retrovirals were discovered to treat AIDS. They were very expensive and AIDS activists said, “Those patents should be available to everyone on a non-commercial basis. No one should be dying of AIDS anymore.” The pharmaceutical companies were able to fight it off and a lot of people died. The overall American patent system is mostly wealth destroying.

43:31

When you talk to Elon Musk about his patents on all his incredible space gizmos, he says, “I have no patents.” He hasn’t patented anything. He’s like, “If we patent it, people just copy it.” For Tesla, for his electrical car patents, he says, “I want GM and Ford to use them. They all can use them for free.” He doesn’t use his patents as a way to block. “We need to move to a electric car economy, and I’m going to make my patents available for that.”

43:56

Overall, the patent system basically lets you create a fence, like remember barbed wire where we started the conversation. Patents are the barbed wire of the intellectual property world. Keep a fence to keep people out. For the most part, they actually destroy wealth in this country. If we basically eliminated patents altogether, America would be much wealthier. There’s one area where potentially patents actually do create wealth, and that is in pharmaceutical patents, because it takes so many hundreds of millions of dollars to create a drug to get through the FDA pipeline, to prove that it’s safe.

44:27

And then, once you create it, you can reproduce it for a penny a pill. If you had no patents or no protection for pharmaceutical patents, you wouldn’t have any reason to invest to create them in the first place. That’s the justification for the patent system as a whole. And then, particularly, it makes sense in the pill area. That counts against President Biden’s move, to some extent.

44:45

But I’m skeptical in this particular context, and for a couple of reasons. One is that most of what it takes to make these drugs is really deep technical know-how. The patent itself is disclosed. That isn’t particularly hard to reproduce. But they wouldn’t have the know-how to prove these very, very complicated drugs. Even that company in Baltimore that was producing the vaccines and wasn’t able to do it properly. That was a very high tech company and it was having a hard time.

45:09

So this is an area where the patents are somewhat overrated. The patent isn’t the real protections. Protection is the know-how that these firms have for producing these very, very sophisticated RNA drugs. But the notion that we should be able to patent a lot of very basic technology around biomedicine should be more controversial in this country than it is. And it is very controversial in a global perspective, and it’s a conversation we really haven’t been having.

45:33

On the sky is falling concern of the pharmaceutical companies that you hear around, if you lift the patents for the COVID drugs, research will grind to a halt, I don’t believe that that’s true.

45:45

Jasmine:
Ultimately, why are there only six rules of ownership? Why aren’t there more? Why these six? Do they really cover everything?

45:54

Michael:
We’ve been talking about this book with law professors and students for many years. We always actually ask that question as well. And so far, no one’s told us otherwise. We are the gurus of ownership. There’s a bunch of people teaching this stuff, but we would count ourselves among the people who thought about this. This is what our careers are largely about. We think back in history. We think what the online world is going to look like.

46:19

Ownership looks very different in different cultures. There’s tribal cultures, there’s customary cultures. There’s more social welfare, European legal systems versus America. There’s lots of differences around ownership around the world. But even with all those differences, you’re still, it turns out, fighting among those same six simple stories. The original claim to ownership seems to trace all the way back and all the way forward. So far as we can see.

46:44

That isn’t an absolute claim. It can’t be. The world can change in ways that we can’t predict. But looking in our crystal ball and looking back through a historical lens, pretty much it reduces down to that and every ownership battle that we can look at, and that’s everything. That’s every ownership battle that as you’re walking down the street, as you are thinking about climate change, as you’re thinking about wealth inequality in America, who owns your online life, or who owns your genetic data, it’s the same few stories that pop up again and again and again.

47:13

James:
I think, actually, as Michael said, I’ll be surprised if a seventh pops up. I think it’s actually hardwired. I mean, I think it’s no coincidence that many of the great cultures creation myths, try ownership. The Greeks, Prometheus steals fire from Mount Olympus. Garden of Eden, the fruit. It’s not yours, but they take it and they’re evicted literally from the garden. And so, I think that, basically, we’re clearly hardwired to care about ownership. And ultimately, the stories that are in play are remarkably, remarkably few.

47:47

Jasmine:
Looking back at all of this, you’ve written the book. Your careers have been dedicated to this. On a gut level, looking at the world through these six lenses of ownership, how do you feel about where we’re going?

47:58

James:
I think that our culture with ownership is essentially where we were 500 years ago, a thousand years ago, and 3,000 years ago. Whenever there’s scarce resources and more people want them than there are to go around, there are going to be competing stories. Whether it was in Babylonia, or Sumeria, or Victorian England, or 21st century America, it’s a small number of stories that are taking place. And the question always is going to be, which story is more persuasive? And how are we going to decide which story is more persuasive? That really, to me, is the story of the human condition. Ownership, to me, is timeless.

48:42

Jasmine:
Thank you so much for listening to this episode of Unseen Unknown. If you’re new here and like what you’re listening to, do us a favor and leave a review. Those reviews mean a lot and help our audience grow. Don’t forget, you can always get more of our brand strategy and culture articles, videos, podcasts, everything, at conceptbureau.com. While you’re there, you can also sign up for our awesome newsletter that will deliver valuable thinking to your inbox twice a month. Thanks for listening. We’ll catch you next time.

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