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OPERATINGCONDITIONSINTHENOWECONOMYThoughtsandsolutionstherstofanoccasionalseriesfromBorkowski.do 1OPERATINGCONDITIONSINTHENOWECONOMY 2OPERATINCONDITIOTHENOWECONOMY 3SIN 4heNowEconomyisourtermfortheworldinwhichwenowthinkcommunicateanddobusiness.Itisaworlddenedbyspeedandcomplexity.Aworldinwhichnochannelofcommunicationiscontrollableandnopublicreactioniscertain.WevewrittenontheNowEconomybeforetakingyouthroughourdenitioninmoredetail.WhatwedliketodonowisillustratewithexamplessomeoftheNowEconomysmoredauntingaspectsanddiscusshowyoucangetthemostoutoftheminyourcommunications.Wecallthesethefouroperatingconditionsofthenoweconomy.Firstthereistheconceptofdisruptivechange.Whenwesaydisruptivewedontmeanitinthesenseitwasusedinyouryear7schoolreport.Wemeanitinthesenserstpopularisedbythepoloneckedeggheadsofthetechworld.Adisruptiveforceinamarketorsocietyisonewhichdoesntjustadvanceexistingprocessesordebatesbutonewhichactuallystartssomethingnew.TheiPodforexamplewasdisruptive.Itwasntjustanewbetterportablemusicdevice-acompetitortoSonysWalkman-itactuallycreatedawholenewmarket.Fromthenonconsumerswantedportablelisteningsolutionswhichallowedthemtotakecontrolofhowtheircontentwasarranged.Themusicindustrywouldneverbethesameagain.Insectiononeweillustratethisoperatingcondition.Wetalkrstaboutthecycleofbirthanddeathhowoverthepasttwenty-thirtyyearsdyingtechnologieshavebeenre-placedbynewoneswhicharentjustastraightreplacementbutactuallydosomethingquitedifferent.Wethenexplorebymeansofsomesimpletimelineshowsomerathercleverpeoplehaveuseddisruptivechangetotheiradvantageandhowothershavestruggled.Nextwehaveapotentiallytrickyoperatingconditionthemultichannelmediastrategy.Backwhenwestartedouragencycommunicationswasnttoocomplexthoughitdidntfeelthatwayatthetime.PRshadtocontendwithanewscycleledbydailypapersandahandfulofbroadcastnewsprogrammes.BiglauncheshadtobetargetedtoahandfulofSundayssupplementsandconsumermagsthenfollowedupwithastoryoftwo.Crisesunfoldeddaytodaywithtimeinbetweenforplanningandco-ordinatingT 5statements.Nowadaysthereisthe24minutenewscycletocontendwithdrivenbytheminutebyminutechatterofTwitterandFacebookandbytheevolutionofrollingnewsandonlineupdatesamongtraditionaloutlets.Insectiontwoweshowthatcommunicatinganythingtothepublicwhetheritbesomethinggreatyouwanttoshoutaboutordamageyouwanttolimitrequiresadeptuseofamultitudeofmediaatbreakneckspeed.Werunthroughacrisiswhichunfoldedatfulltilt-therecentsexabusescandalaroundLibDempeerLordRennard.Wethentalkaboutabrandthatusesamixoftraditionalandnewmediatogreateffect-bettingshopoperatorPaddyPower.Insectionthreeweillustratethethirdoperatingconditionthedemandforconversation.Thepublicnolongerthinksofinstitutionswhethertheybepoliticalculturalorcorporateasfacelessmonoliths.Insteadtheyareaccountableandanswerable.Thisisnottosaythatmanyinstitutionsdontstillmanagetopullthewooloverthepublicseyes-theymostcertainlydo.Howevertodosostillrequiressomeconcessiontothisconversationalinstinct.WeillustratethistrendbyexploringthemediumthatmostclearlyexempliesitTwitter.Finallywelookatafourthoperatingcondition-antitrust.Acrossmostareasofpubliclifepeoplearelesswillingtotrustexpertsorleaders.Wetakealookatimportantdevelopmentsinsomeareasofpubliclifewhichhaveledtotheuntrustingsocietywendourselvesintoday. 8isruptiveChangeisnowarealityinalmostallareasofpubliclife.InrecentyearsithasbeendenedbyacycleofbirthanddeathwherebyoldtechnologiesandsystemsdietobereplacedbynewoneswhichoperateradicallydifferentlyDeathPrintMediaControversialonethis.HoweverwedontmeandeathinthetotalsensePrintreadershipisnowgraduallystabilisingparticularlyinthemagazineandweeklyworldsandeventhoughitistrickytomonetisedigitalnewsisstillseeingadominancebytraditionalmediabrandslikeTheDailyMailandtheGuardian.Howeverwhatisunquestionableisthatthepowerofatab-loidfrontpagetomobilisethecrowdisvastlydiminished.WebasethispartlyonanecdotalevidenceTheDailyMailsrecentVileProductofWelfareUKheadlinefollowingthePhilpottscandaldidntreliablycapturethepublicmoodwithmostpollsshowingaround43ofthecountrybelievingthatPhilpottraisedsomequestionsaboutbenetsand51believePhilpottwasmerelyoneevilmanandpartlyonthemoneydespitespendingondigitaladsstillbeingworryinglylowin2012itsurpassedspendingonprintadsforthersttime.BirthSocialNewsSocialnewsbywhichwemeannewsandcurrentaffairscontentdistributedonlineandproducedprimarilytobeshareableonsocialmediaorsearchableongoogleisstillinitsinfancy.HowevertwokeyproponentsaredoingverywellindeedMailOnlineissettohit100mrevenuesinthenext3-5yearsthankstoitsprincipleofpublishingallthenewsthatsttotalkabout.BuzzFeedrecentlyexpandedintotheUKandwhileguresonitssuccessareyettobepublishedithasbeenhiringnewwritersandboldlydiversifyingcontenttoanextentunseenamongothernewscontentproducers.Thepointhereisthatifsocialnewsbecomesthedominantmethodofnewstransmissionitwontsimplybeanupdateonthetabloidheavyweightsofold.Forcommunicationsitmeansthattheoldmodelofashockingheadlineoragreatimagearentenough.Theremustbeapowerfulshockingsurprisingstoryattheheartofanythingonetells.D 9AsthepowerofthetraditionalmediaiscurtailedwhetherbysuperinjunctionorbyRoyalChartersocialnewsmayndwaysaroundthis.Thereisstillanincreasinglylesslikelypossibilitythatrestrictionsondigitalnewsdistributorswillbelesssevere.Morelikelysocialnewscanrelyonthefactthatitdoesntneedtoovertlyprintforbiddenorlibellousinformationforindividualstoshareitandknowwhatitmeans-newsofthefalseMcAlpinesexualabuseallegationsspreadacrossTwitterwithoutanyjournalistneedingtomentionthemoutloud.Hadtheybeentruethiswouldhavebeenatriumphofmodernpressfreedom.SocialNewstooneedntmeansillystoriesaboutcelebrities.Thetriumphofwikileaksisthatitwassocial.EvenafteritstraditionalmediapartnerTheGuardianandtheNewYorkTimeseithersteppedgracefullyasideormountedanti-Assangesmearcampaignsitisstillreleasingcablesandmakingheadlinesthankstothedriveofitsmotivatedfollowers.DeathP2PFileshareNetworksAgainaboldclaimandwerenotclaimingthatdigitalpiracyisgoingtoceaseanytimesoon.HoweverwiththeclosesureofNapsterthesanitationofLimewireandKazaaandthecurrentactionagainstThePirateBaythedistributionchannelswhichsprungupintheearly00sandlate90stofacilitatetheillegalsharingofcopyrightedcontentarecollapsing.BirthTheNewUndergroundortheCorporateDreamItsnotquiteclearyetwhatisreplacingthesechannelsbuttwoopposingscenariosarelikely.Ontheonehandentertainmentindustriesareincreasinglygettingwisetothedigitallow-frictionconsumptionhabitsofmodernconsumersandprovidinglegalmonetisedservicestogivethemwhattheywant.Spotifyhasachievedvasttractionandglobalgrowth.Theirnancialresultsareshadyandthelastsolidguresavailablearefrom2011whentheywerentdoingwell.Howeversincethentheyhaveintroducedvariousnewsubscriptionmodels.IfyoubelieveEKtheymighthaveseenrevenuesasstrongas889mfor2012.Theyplantopayout500mtorightsholdersthisyearwhichwouldsuggestrevenuesaresignicantlyhigherthanthatareexpected.Netixssharepriceshaveseenconsist-entrises.InlateApriltheywereup24toaround216mnowtheyrelistedat233.97m. 10Ontheotherhandtherearenewmoreperniciouschannelsforpiracygainingtraction.TORTheOnionRouterwhichallowsuserstoplaceserversontheDarkWebanunsearchableportionoftheinternetwhichcanbeusedforpurposesincludingtradingisgrowinginpopularity.CurrentlythefearsaboutTORfocusonlessconsumer-friendlyblackmarketslikethearmstradeandchildpornography.Howevershouldtheseplatformsbecomeeasiertousethereisarealpossibilitythattheywillbecomemuchlessdefeatablechannelsforpiracy.Eitherwaythesescenariosdemonstratehowtheinternetischanging.Consumersarenowwillingtoengagewithcomplexsystemswhichrequirethemtobecontinuouslyonlinenolongeristhenetsimplyabigpipealongwhichitemstravelandareextractedtobeconsumedofine.DeathMyspaceTheheadyearlydaysofsocialnetworkinginthemid-00ssawmanynownear-defunctsocialnetworksspringupfromBebotoLivejournal.Myspacehoweverwasthemostimportant.AtitspeakDecember2008itattracted75.9mmonthlyuniqueusersintheU.S.ByMay2011thishaddroppedto34.8m.Recentattemptstorevivethecompanyincludingtheactionsofcelebrityco-ownerJustinTimberlakemayyetwork.Howeverforourpurposesherethatisaquestionforanothertime.Myspacewasfriendlyandfun.Drivenbyitsdominanceofmusiccommunicationsitscustomisablehomepagesitsdramaticbulletinupdatestofriendsandmoreitwasanetworkfortheyoung.Ithelpednormalisesocialnetworkingforthegenerationknownasthedigitalnatives.Howeveronceithadservedthispurposeitswiftlylosttheinterestofconsumers.BirthFacebookManyanalyststhinkthatFacebooksfortunesareabouttoturnbutevenifthisisthecasewhatithasachievedisremarkable.Itnowhassomethinglike1.06billionmonthlyactiveuserslogging1.13trillionlikeslastyearandseeing1.58bninQ32012.Facebookrepresentsmanytrendsinpopularconsumptionoftheinternetbutperhapsthemostimportantishowhabitualithasmadesocialnetworking.Unlikemyspace 11FaceBookhasalwaystradedoffacleanuserinterfaceandproledesignandafrictionlesswayofkeepingintouchwithfriendsviathenewsfeed.Ithasalsoseenremarkablesuccessonmobileithas680mMAUasofDecember2012.WhetherFacebookmaintainsitsdominanceoristoppledsocialnetworkingfortheforseeablefuturewillbesomethingpeopledoseveraltimesanhournotonceaday.DeathGeeksIn1980theprevailingWesternculturalstereotypesandsocialhierarchieswerethoseoftheAmericanHighSchool.TheGeeksthenwereatthebottom.Surethe1980ssawexplosiverevolutionsintechnologytherstgreatAppleMicrosoftwarstherstgenerationofvideogameconsolesandmoreallofwhichhavegoneontoshapetheworldwenowinhabit.Howeverthesewereeithermadebygeeksforgeeksvideogamingforinstancerarelyifeverappearedinthemodernmediaasanythingotherthanascarestoryuntilveryrecentlyortheywereusedbyallbutcelebratedbyfew.BeyondBillGatesandSteveJobsfewgeeksachievedmainstreamapplauseuntilthedotcomboomofthelate1990s.BirthNerdsAnerdisageekwithfriendsageekwithpassionsageekwithcreativity.NowadaystheNerdisking.The90ssawAmazonLastMinuteFriendsReunitedetalnormaliseinternetsuccessproducingproductswhichturnedevery-oneintoapassionateonlineresearcher.The00stookthisastepfurtherwithproductsfromFacebookandMyspacetoMoshiMonstersturningeveryoneintoaninternetcreative.Wevealsoseenariseinwhatwereonceconsideredgeekypursuits.Videogamesarenowtheworldsmostimportantentertainmentindustry.InpartthisisthankstolargebudgetsandclevermarketingofAAAblockbusterprod-uctsCallofDutyModernWarefare2sawthelargesteverlaunchofanentertainmentproduct.Thisshowsthemove-mentoftechnologyintoourdaytodaybehaviours.Ingam-ingthishaslargelybeenrepresentedbythegrowthinhand-heldplatformswhichareeasytomarketasadesirableconsumerproduct.FromPokemonRedandBluein1996creditedwithsingle-handedlysavinganentiresystemtheGameboyandachievingunprecedentedmainstreamsuccessincludingamajorsyndicatedcartoontie-intoAngryBirdsnowplayedbyeveryonefromcommittedgamerstothePrimeMinister. 12Theriseofthenerdshowshowunpredictablemasscul-turalopinioncanbe.Despitethefairlyconsistentgrowthofthetechsectoroverthepastthirtyyearshowmanyinthecleancutslicksuited80swouldhavepredictedthatthebigswingingdicksoftomorrowwouldbepeoplethengettingtheirheadsusheddowntoiletsTheNowEconomydemonstratesapassionamongconsumersforgreatcreativeproductnomatterhowsupposedlytarnishedortoxicitmaycurrentlyappear.TimelinesofdisruptivechangeMusicconsumptionandcreation-Vinyltothemp31979SonyCorp.introducedtheSonyWalkmanTPS-L2aportablecassetteplayer.LegendhasitthattheordertodevelopthetechnologycamestraightfromSonyco-founderMasaruIbukawhotravelledagreatdealforbusinessandfoundSonysexistingcassetterecorderstoodifculttocarryaround.Whateveritsconceptionthesuccessoftheproductwasphenomenal.Itsoldupwardsof50000unitsinitsrstthreemonthsofreleaseinJapan-bosseshadpredictedsalesoflessthan15000inthesametime.WalkmanmadeitintotheOEDby1986-amoresignicantfeatbackinthedaysbeforeOxfordDictionariesbegantorealisethePRvalueofcontroversialwordintroductions.Vinylsdominance-andtheprimacyofsoundqualityoverconvenience-wasforeverover.1984SonyprovesonceandforallthatportabilityisthedrivingforcebehindconsumeradoptionofformatswiththereleaseoftheDiscmanwhichleadsCDsalestosoartwoyearsafterthemediumwasrstintroduced.1990Decktheworldsrstsoftware-baseddigitalmultitrackrecorderisreleased.ItsetsthestageforCubaseProtoolsandotherlaterhomerecordingsoftware.Bytheendofthedecadetheperceptionofrecordingassomethingonlyavailabletotheseriousprofessionalwasforevereradicated.2000ApplepurchasesdigitalmusiclibrarysoftwareSoundJamMPandrenamesitiTunes.Theworldbeginsstoringandplayingitsmusicdigitallyandneverlooksback.Thealbumformatandthetraditionalnotionofownershipofarecordareerodedarguablyreinforcingpiracytrends. 13Theriseofthenerdshowshowunpredctablemassculturalopinioncanbe 142001ApplereleasestheiPodsecuringthefutureofmusicasdigital.TheiPodbecomesalifestyleiconreinforcingApplesdecade-longstatusasthegreatestbrandintheworld.2009Wireddeclaresthatmobilephoneswillchangethewayyoulistentomusicastheybecomethedominantdeviceformusicconsumption.EventTV-CoronationStreettoBigBrother1977ABCpioneerstheminiseriesacompellingeasilysellableformatwhichdrawstogethernationsacrossshorthighbudgetstorydrivenserialsusuallyadaptions.Thelate70sandearly80ssawsmashhitslikeShogunNBC1980TheThornBirdsABC1983andTheWindsofWarABC1983intheUSandBridesheadRevisitedGranada1981andTinkerTailorSoldierSpyBBC1979intheUK.1981BritainsCoronationStreetsoapoperaseesKenBarlowandDeirdreLangtonweddrawinganaudienceof24mandusheringinanewgoldenageforBritishsoaps.AmericahadthemightyDallasformanythedeningTVproductofthe80s.1989FragmentationofTVdistributionreachesnewlevelswith60ofAmericanhomeswiredforbasiccable.BritainissomewaybehindbutcatchesupwiththelaunchofBSBlaterBskyBin1990.1997AlengthybrainstormingsessionatEndemolspawnsBigBrothertheworldsrstmajorintroductiontorealityTV.ItistobecomethedeninggenreofthefollowingtenyearscombiningcheapproductionvalueswithahighPR-abilitythatplayswellacrossemergingchannelswellintothe00sandbeyond.2004TheUKseestherstseriesoffutureglobaltalentbrandTheXFactor.Theshowmakesaglobalstarofstar-makerSimonCowellmarkingaperiodinwhichthepublichasunprecedentedawarenessoftheprocessesbehindthefameindustryandparadoxicallyagreaterdesireforfame.BytheendofthedecadeformerXFactorstarswillappearinmajormediaeditorialrolesinthechartsandasguestsonfutureseriesofTheXFactor. 152010AgainstalltheoddsdramaseesaresurgencewiththereleaseofDowntonAbbeyaphenomenallyandinter-nationallysuccessfulperioddrama.Radio-HomeServicetoSpotify1969TheBBCpublishesitsreportBroadcastingintheSeventieswhichproposedanendtoregionalbroadcastinginfavourofrestructurednationalprogrammingandgreaterlocalcoverage.ThelastvestigesoftheoldHomeServiceareabandonedinfavourofamorefragmentedpersonalisedexperience.1972AsthepopularityofvehiclesliketheMarkIIMini1969soarsRadio2sTheDunnThingwithJohnDunnbecomestherstgreatdrivetimeshow.Radiobeginstoassumeitsuniquepositionasauniversalmediumwithhighpassiveandlimitedactivelistenerengagement.Advertisershaveneverquiteworkeditout.1977TheBBCbansTheSexPistolsGodSavetheQueencementingitspositionasasurerehitandbringinganewpoliticaldimensiontotheclassic50sphenomenonofthebannedsmashhit.1985KissFMemerges.ItistypicaloftheresurgenceinpirateradiobasedinanurbanenvironmentSouthLondonratherthanoffshoreithasaccesstotheup-to-the-minutelatestindanceandurbanmusic.ThedeathknellofBBCRadioscontroloverthenationstastesissounded.1995ThepubliclaunchofdigitalradiointheUKseesthebeginningofradioundergoingthesamefragmentationprocessasTV.Consumertastesareincreasinglypersonalandgenre-driven.2011DigitalmusicserviceSpotifylaunchesSpotifyradiowithamobileversionrolledoutthefollowingyear.Thistakesthefragmentationbegunbydigitalradiotoitslogicalconclusiontherearenowasmanystationswithasmanygenremixesastherearepeoplesubscribedtotheservice. 16OPERATINCONDITIOTHEMULTMEDIAST 17TWOCHANNELATEGY 18nFebruarytheLibDemshavefeltthefullforceofpublicmeltdownintheNowEconomy.WhenChannel4NewsonThursday21stFebruarybroadcastallegationsofsexualabuseaimedatformerpartyChiefExecutiveLordRennardtheresponseoftheLibDemslackedtwothingsclarityandparanoia.TheformerisacornerstoneofgoodPRinanewscyclewhichisless24hourthan24minute.Whereonceasmoke-screenofgarbledhalf-truthwasausefuldelayingtacticitwillnowberippedapartnear-instantlyonlyincreasingthehungerforthewholetruth.Oneneedstodecidefromtheoutsethowmuchofthetruthoneisgoingtogiveandhowmuchoneiswillingtodoandthendoeverythingpossibletoremainonthatline.IttookClegguntilTuesday26thmorningoftotakermpersonalchargeofthesituationandreassureSkyNewsthatwhiletheinvestigationsweretoppriorityhewouldnotbeprovidingarunningcommentary.Thelatterhasalwaysbeenattheheartofgoodcom-munications.AcultureofcomfortableinternaladvisorsmeansorganisationsofallstripeshavelostalotoftheirPRfervour.Acrisiscannotwaitthepublicwilldemandsatisfactionandthemediamostdenitelyareouttogetyou.Rennardknewthis-heallegedlykeptalittleblackbookfullofcompromisinginformationaboutotherpartymemberswhichispartlywhyheheldsomuchswayforsolong-shamehispartydidntsharehistenacityinestablishingtheirposition.Thursday21stFebruaryC4newsbreakthestorywithallegationsfrom3LibDemwomenofharassmentbyformerpartychiefexecutiveLordRennard.TheLibDemslaunchtwoinvestigationsintotheissuebutotherwisesufferfromwishfulthinkingwithanimpersonalblanketdenialfromCleggsofcecreatingavacuumthattheywillfailtosatisfactorilyllforsometime.Friday22ndFebruaryRennardstepsdownfromthepartydutiesheonlyresumedinlate2012denyingeverything.MeanwhilethepressfalloverthemselvestomaximiseLibDemculpabilitywithTheTelegraphrevealingitinformedCleggsthenChiefofStaffofallegationsin2010onlytoreceiveaatdenial.I 19Saturday23rd-Sunday24thFebruaryAsCleggremainssequesteredonfamilyholidayinSpainhissilenceislledbythechatteringofathousandhackswithTheDailyMailpublishingcorrespondenceimplyingheknewofhistoricallegations.OtherpartyguresincludingVinceCabletrytocoverforhimbutthemediaarenotsatiseduntilonSundaynightCleggnallybreakshissilence.HisstatementispoorlyjudgedadmittingsomeknowledgeofRennardsreputationandneedlesslydraggingDannyAlexanderintothefray.Monday25thFebruaryAnarrayofappallingsplashesmakesthepartybegintogetustered.UnfortunatelytheyallhavedifferentideasofwhatconstitutesanappropriateresponsefromTimFarronsbluntadmissionthatwescreweduptoJasperGerardsreminderthatthisisnttheJimmySavillecase.FinallytheygetaroundtorevisingtheircomplaintsprocedureasScotlandYardadmitsitistakinganinterest.Tuesday26thFebruaryCleggspeakstoSkyNewsandattackstheself-appointeddetectivesfuellingthescandal.Thisturnsoutnottobethebestideaasineverydayparlancethosedetectivesarewhatsknownasthefreepress.MeanwhileTheWorldAtOnesinterviewwithaclaimantbringsthetollofallegedvictimsuptonine.Rennardsresponseistodenyeverythingagainonlyinslightlymoreowerylanguage.Wednesday27thFebruaryAsCleggpreparesforhisregularCallCleggspotonLBCTheMirrorbringsthetollofallegationsuptoaround30andSarahGidleyisreportedtohavetoldhimoftheaccusationswhenhebecamepartyleader.hethenclaimsthattheallegationswerethatallegationswereinthebackgroundwhenRennardoriginallyresignedfromthepartyacontradictionofhisearlierstatement.Thursday28thFebruaryAlisonSmiththeoriginalwhistleblowerbowsoutofthescandalshehashelpedtofuelexplainingthatshehasspokentothepoliceandurgingotherwomenwithinformationtodothesame.Friday1stMarchSalvationTheLibDemswincomfortablyintheEastleighby-electionlargelythankstoaneffectivegrassrootscampaignwhichpulledlocalfocusawayfromthescandal.Isthepartysafeagain 20Acrisiscannotwaitthepublicwilldemandsatisfactionandthemediamostdenitelyareouttogetyou 21Saturday2nd-Sunday3rdMarchTheanswerissortof.Thepartyclosesranksandthepressbegintoloseinterest.HoweverClegghimselfmayhavetakenirreparablereputationaldamagefacingapotentialleadershipchallengeandattacksfromLabour.Hadhemadearmpublicstatementstraightawayhemighthaveavoidedmuchofthis. 22OPERATINCONDITIOCONVERS 23THREETION 24onversationdenestheNowEconomy.Peoplearenolongerwillingtoacceptdirectivesrightoffthebat-theyneedthefreedomtoquestiondiscussandengage.Thisisnottosaythattheyarentstillsusceptibletopropagandabutanymessageneedstobecouchedintheformofadiscussion.TheareaofpubliclifewhichbestexempliesthisisTwitter.WhatisTwitterTwitterisamicrobloggingservicethatinvitesuserstoanswerthequestionWhatshappeningin140charactersorless.Thesemessagesarecalledtweetsandusersareabletoengageinconversationswithanypersonorinstitutionthathasanaccountatanytimeoftheday.Usersareabletousehashtagsphrasesprecededbythesymbolwhichturnintolinkscategorisingalltweetsrelatingtothattopic.Whenatopicgainsalotoftractionitisplacedinachartandthosethatreachthetoppositionsarepubliclylistedandreferredtoastrendingtopics.Abriefperusalofthesetopicsisagoodindicatorofwhatisdrivingconversationthatday.Thisisgreat-tightunpretentiousengaging.ThewaythatTwitterisusedcommerciallydemonstratesconsumersgrowingneedtohavesomepersonalconnectionorsymbioticrelationshiptothebrandstheypurchase.67ofTwitteruserssaytheywouldbemorelikelytomakeapurchasefromafollower.Likeitornottherearepeoplewithopinionsaboutwhatyoudoandameansofdisseminatingthem.SoitsessentialtocultivateameaningfulandmeasuredTwitterpresence.BelowwevedetailedsomecasestudieswhichillustratetheconversationalnoweconomyoperatingconditionthatTwitterexempliesProfessionalConductonTwitterAfteranumberofhigh-profilescandalsthepublichasbecomeincreasinglysavvyaboutonlineprivacy.Howevertherehavebeenanumberofblunderseveninrecentmonths.HerethemediumofTwitterallowedforahighlyvisiblepublicresponsetostatementsoractionswhichoncewouldhavebeendifculttochallenge.KeithVazMPmadecommentsonTwitteraboutHomeSecretaryTheresaMaysphysicalappearancesparkingoutrageinthemedia.C 25DavidLammyMPmadeaippantcommentaboutblackorwhitesmokeattheVaticanwhichwasconstruedtoberacist.StellaCreasyMPwashunteddownandharassedonTwitterbyadisgruntledWongaemployeeasshehasbeenoutspokenaboutherviewsonpaydayloans.Theemployeewasforcedtoissueanapology.Wongaclaimedthatanunauthorisedjunioremployeewasresponsibleforthebehaviourandthatadisciplinaryprocedurewastakingplace.TheUSEmbassyinCairocameunderreforunusuallypolitically-chargedmessagingemanatingfromitsaccountwithregardtoitsviewsonMorsiandthepoweroftheRuleofLawinEgypt.TheaccountwaseventuallyshutdownwhichcommentatorsarguedwasmoredamagingforthebrandasitinsinuatedthattheUSwouldcrumbleunderpublicpressure.Spanish-languagenewspaperElPaiswasforcedtoapologiseforpostingapicturepurportingtobeofChavezinhishospitalbedwhichwaslaterproventobeafake.CustomerswantcompaniestocareMicrosoftStudioscreativedirectorAdamOrthopenlymadecommentsonTwittersayingthatconsumersshoulddealwithhavingtohaveaconstantinternetconnectioninordertouseanewXboxconsolearguingthatpeoplewouldntrefrainfrombuyingavacuumcleanerjustbecauseelectricitysometimesgoesoff.ThiscontradictedMicrosoftscustomer-centricapproach.ThefalloutundoubtedlyplayedapartinMicrosoftsrecentU-turnontheXboxOnemeaningthatcustomerswillnolongerneedtobecon-stantlyconnectedtotheinternettoplay.InformationwireasusedbycelebritiesTwitterisincreasinglybeingusedbycelebritiesandtheirPRteamsasameansofspreadingmessagingabouttheirlivesandtheirbrand.Insomeinstancesitcanbeaformofpressrelease.SuccessfulcelebrityaccountsrangefromBarackObamaandthePapalaccountwhichareknowntoberunbytheWhiteHouseandVaticanpressdepart-mentsrespectivelyyetstillhavealargefollowingtouserssuchasJustinBeiberandStephenFrywhoareinchargeoftheiraccountsandusethemasameansofpromotingcauseswhichconcernthemaswellasusingtheplatformasameansofupdatingtheirusers. 2667ofTwitteruserssaytheywouldbemorelikelytomakeapurchasefromafollower 27Thereareadvantagesanddisadvantagestoeachapproach.WhilstaccountssuchasBarackObamasandthePontifexaccountareboundtohavealargefollowinggiventheirprestigeforlessercelebritiessuchassistancecouldbeoffputtingforfanswhowanttofeeltheyaregettingclosertotheiridols.HoweverifcelebritiesaretohavecontroloftheirpublicTwitterpersonaeitisimportantthattheyaremedia-trainedandmediasavvy.WhilstindividualssuchasStephenFryhaveshownacannyabilitytoengageinTwitterconversationandleveragethemediumasameansforself-promotionothercelebritieshavefoundthemselvesincompromisingpositionsasaresultofpostingphotosorgettinginvolvedinheateddebateswithothercelebritiesthroughthemedium. 28OPERATINCONDITIOANTITRUS 29FOUR 30erewelookathowtwoareasofpubliclifehavebecomedenedbyantitrust-byinherentdistrustoftheestablishmentguresweoncethoughtweretheretoprotectus.Thesetwoareasarenamelypoliticsandnance.PoliticsTimelineWilsontotheCoalition1963HaroldMacMillanssecretaryofstateforwarJohnProfumoresignsafterhislong-deniedaffairwithChristineKeelerisexposedastruth.Thepublicneveragainhastheslightesttroublebelievingthatarespectedestablishmentgurecouldfallpreytohisherbaserurges.1965TariqAlirecalledinarecentG2articlethatMichaelFootshoutedatheandhisfellowstudentleftiesastheyjeeredatPrimeMinisterHaroldWilsonforcrawlingtothePentagonyouidiotsdontyourealisethatWilsonisthemostleftwingPrimeMinisterthiscountryisevergoingtohaveitmarkedthebeginningoftheendofBritainspostwarleftistproject.Afterafewyearsofhippielibertarianismfollowedbyearly-70sindustrialstrifeAliandhisfriendswerentlaughing.1980MargaretThatcherdeliversthesinglegreatestlineofhercareertotheConservativePartyConferenceYouturnifyouwanttotheladysnotforturning.Itcametodeneherpremiership-sheoversawaremarkableandfromthepresentdaypositionseeminglyirreversibleshifttotherightinBritishpolitics.Fromnowoncollectivismwasdead.Thepublicwantedtoseebigmoneyfastresultsandafreemarket.1997LabourwintheGeneralElectionwiththelargestmajorityofanygovernmentsince1935.DespiteorperhapsbecauseofthisbeingoneofthelastgeneralelectionswonthroughtraditionalspinningwithTheSunslastminuteturnaroundcreditedasthesinglemostsignicantmomentinthecampaignthiselectionmorethananyotherbecameknownforitscommunicationscampaign.ThisisthankslargelytothenotorietyofTonyBlairsspokesmanAlasdairCampbellwhoseroleinthedodgydossierascoandbattleswiththeBBCmeanthehascometorepresentallthatiswrongandincestuouswiththetraditionalmediapoliticalelite.2009TheDailyTelegraphexposesacross-partycultureofexpensesddlingwhichsawMPsclaimingexpensesforH 31DuckHousesHolidaysandotherluxuries.Thescandalmarksakeypointinageneralgrowingdistrustwithmainstreampolitics.ItiscreditedasalargefactorintheLibDemselectionsuccessin2010andisconsequentlyanearlystageintheantitrustnarrativewhichsawconfusedvoterselectCameronandCleggonthegroundsofchangebeforebecomingsimilarlydisaffectedwiththecoalitionandturningincreasinglytoextremismmostrecentlyseeninthelocalcouncilsuccessofUKIP.2011TheGuardianreportsthatallegedphonehackersworkingforNewsInternationaltargetedthephoneofmurderedschoolgirlMillyDowler.ResultantpublicoutrageleadstotheLevesonInquirywhichinturnleadstoongoingnego-tiationsoncurtailingthepress.Withreadershipdownandsocialchannelsgrowinginpoweranywayitisunlikelythatthetraditionalprintmediaindustrywilleverregainthetrustandpoweritoncehad-andneitherwillthepoliticianswithwhomtheinquiryrevealedittoassociate.ThreeKeyMomentsThatcherandtheShiftRightwardIronicallygiventhatsheherselfwassuchadivisivegureThatcherdidahugeamounttoprepareBritishpoliticsforhomogenisation.WhydoIsaythisConsiderthefollowingpointsThatcherwonpowerpartlyonthestrengthofthenowinfamousSaatchiSaatchipostercampaignLabourIsntWorking.Thisisnowlaudedbytheadindustryandpoliticiansalikeasoneofthegreatestpoliticaladvertsofalltime-itisoneofonlytwopoliticaladvertstoappearinCampaignshalloffame.Itisinterestingfortworeasons.Itsignalsthestartofmodernpoliticiansgreatloveaffairwithspin.ThatcherandherstringofcommunicationsoverlordsfromLordBelltoMauriceSaatchiweremasterpropagandistswhomanagedtosellsomefairlyfrighteningideastotheoverwhelmingmajorityandthisposterrepresentsthebeginningofthisespeciallyastheguresintheposterwerenotunemployedbutmembersoftheHendonYoungConservatives.Fromthispointonitwouldbeverydifcultforpoliticianstoachieveanythingthroughthetraditionalpoliticaltoolsspeechescampaignpromisesandthelike.Thisposterspoketopeopleonalevelwhichwentdeeperthanpolitics.TheToriesunderThatcheritsaidrepresentednotpoliticalideasbutamoodandabeliefthataslow 32Britainsimplywasntgoodenough.Toanextentthisspoketopeopleonbothsidesofthepoliticalspectrum.ThatcherremainedinpowersolongarguablybecauseshewasagreatinternationalleaderdauntlesslyrepresentingBritainsinterestsontheworldstage.Eversincewehavebeensearchingfruitlesslyforamightyheadofstategureandsomeoflaterpoliticiansgreatestdisasterscanbetracedbacktothedesiretobesuchagure.BlairsdisastrouswarinIraqwasmotivatedbyadesiretopositionBritainalongsideAmericaasaleaderofthefreeworldandCameroncurrentEUmessbegannotwithUKIPsrisebutwithadesiretoceasekowtowingtoGermanyintheinternationalarena.ThethingaboutinternationalpoliticsisthatitdoesntprioritiseideologysomuchaspersonalityanddecisivenessbothofwhichThatcherhadinspades-TheEconomistsdenitiveobituarylistshergreatestachievementsastheprotectionofBritishinterestsintheFalklandsandheractionsontheworldstageinbringinganendtothecoldwar.The1980ssawtheendofideologyanddogmaasaplausiblewayofcarryingoutpopularpoliticsatleastforthetimebeing.ThatcherssmashingoftheNUMathomeandherpivotalroleinthedissolutionoftheSovietUnionabroadhavegonedowninhistorynotsomuchasvictoriesoftheRightovertheLeftbutofprogress-andeconomicsuc-cess-overdogmaticinefciency.Itwouldnowbeveryhardforanygovernmenttowinanelectiononideologyorindeedonanythingotherthanevidenceoftangibleshorttermgain.ThisismostobviousinthedominanceofthefreemarketideaswhichThatcherbroughttoBritainandwhichsubsequentlyspreadacrossthedevelopedworldin1985-2000Europeangovernmentssoldoffsome100billion-worthofstateassets.Thefreemarkettherightofanyindividualororganisationtomakeandkeeptheirmoneyhasnowbecomethestartingpointfromwhichwethinkaboutpolitics.NewLabourandtheEndofTrustAnapocryphalstoryfromtheWestminstermedialobbyhasitthatwhenThatcherwasaskedatarecentlunchwhathergreatestachievementwasheranswerwasNewLabour.Whatshemeantwasthatherpoliticshadbeensosuccessfulthattheyhadbroughtherideologicaloppositessquarelyontoherturf. 33NewLabourrepresentedthedeepestandmostcompletefocusonPRvalueoverconvictioninBritishpoliticstodate.AsanideologyNewLabourwasanattempttoreconcileLaboursdutytothelessfortunateinsocietywiththefreemarketidealspopularisedbyThatcher.Theyrodetothebiggestmajorityheldbyanygovernmentsince1935notonthebackofsolidleftorrightwingthinkingbutratherageneralstirringupofpopularhopeviatheirclassiccampaigntuneThingsCanOnlyGetBetterbyDReam.WhatthepublicfailedtorecogniseisthatNewLaboursideologywasbasedsolelyaroundgivingpeoplewhattheywanted.Evenwheretheyweredeemedsuccessfultheirpoliciestendedtoprioritisethingsthatwouldplaywellinthemedia.InEducationforexampletheysawtoitthatUniversityattendancesoared.Atthetimeitprovidedplentyofexcitingupwardsgraphs.Nowitisapotentialmajorcontributortotheyouthunemploymentinwhichwearecurrentlymired.Mostimportantthoughishoweasilygivingpeoplewhattheywantcanmorphintotellingpeopleonlywhatyouthinktheyneedtohear.ThedodgydossierwhichledtowarinIraqwasperhapsthegreatestbreachofpublictrustevercommittedbyamodernpoliticalparty.WhilemanypeoplesuspectedalackofevidenceforWMDsinIraqparticularlyfollowingthedeathofDrDavidKellyitwasntuntil2008withtheconfessionofforeignofceaideJohnWilliamsforhispartinthedeceptionthatthetruthwasfullyrevealed.Thepublichasneverreallytrustedapoliticiansince.Whenpoliticsmovesawayfromsolidideologytheonlybenchmarkithasisthepublicopinion.Whentheonlybenchmarkonehasispublicopinionthetemptationtoliecanbetoogreattoresist.InterestinglyaccordingtoTheEconomistsrecentgeo-graphicallyadjustedpoliticalmapofBritaintheNorthSouthLabourConservativedivideisstillwellentrenched.HoweverwhensetagainstdecliningvoterturnoutandthelikelyenormousnumberofprotestvotesforUkipandothernextelectionthisspeaksmoretobrandloyaltythanitdoestoactualideology.Mostpollingdatasuggestspeo-plevoteinaparticulardirectionbecausetheyhavealwaysdonesomorethanbecauseitwillbringthemchange. 34TheCoalitioninoneScandalTheRennardAffairThecoalitionstaggeredintopoweragainstabackdropoftotalantitrustinpolitics.Inmodernpoliticaldiscoursethereisaperceptionofpartiesasdisparategroupsofsquabblingindividuals.ThishasbeencompoundedbytheruleofacoalitionwhichalwayshighlightspersonalideologicaldifferencesamongthepowerfulinthiscasefromCablewhofrequentlyopenlycriticisestheConservativestoCleggwhoisperceivedasbendingoverbackwardstoaccommodatethem.ThisiscurrentlybeingexempliedonanalmostweeklybasisbutonerecentillustrativescandalwasthesexualabuseaffairwhichsurroundedLibDempeerLordRennard.Rennardfacedclaimsfromanumberofpartymembersthathehadsexuallyabusedthemsomethingwhichhedenied.Therestofhispartyhadtotreadacarefullinewithoutwishingtocondemntheirmanonminimalevidencethescandalhadimplicationsforthepartysorganisationandcomplaintsprocedureandtheyhadtobeseentobedoingsomething.Thescandalexposedjusthowdifcultitistobeapoliticalleaderinamulti-channelworldandjusthowwoefullypoorlyourcurrentleadershaverisentothechallenge.HadCleggemergedrightawaywithacalmstrongperformanceforbiddingarunningcommentarybutmakingstrongassurancesthathepersonallywouldbemakingsurepartyinvestigationswererunningsmoothlyandbeingclearabouthiscurrentlinewhichstilllookssomewhatshakythathedidntknowaboutspecicallegationsbuthadbeenmadeawareof-andtriedtodealwith-generalissuesthismightnothavebeensoproblematicforhimpersonally.Ideallyhedhaveappointedtheindependentwhistleblowercharityatthispoint.Eveniftheabovelinewaslaterproveduntruethelevelofpressspeculationandthirstforthestorywhichwasallowedtobuildupinthethreedaysbeforehemadehisstatementarelargelywhathasdriventhis.AnotherkeyissueisthesheernumberofdifferentLibDemswhovenowspokenontheissueallwithconictingaccounts.HadCleggbeenmoreavailableasaspokesmanthismighthavebeensomewhatcurtailed. 35TheRennardscandalexposedjusthowdifcultitistobeapoliticalleaderinamultichannelworld 36FinanceTimeline1982-yearzeroTheForbesrichlistcountednonanciersamongitsnumberwhilstonwallstreetateamatinvestmentbankSolomonbrothersarecookinguptheingredientsfortheMortgagebondboomtherstgreatnancialinnovationofthe1980s.1983MichaelMilkensetstheLBOboom-theerasothergreattrend-inmotionwiththe1.1bnhybridsecurityissuanceofMCICommunications.1987TheSavingsandloancrisisintheUSleadstoglobalrecession.PublicperceptionisthatthisiscausedbygreedybankersbutcruciallygreedybankerslikeMilkenoperatingontheirownforsimplepersonalgain.1996Themarketbeginstoseeasharpincreaseinsubprimemortgagelending.Forthersttimeregulatorspoliticiansandbankersareknowinglycollaboratinginriskybehaviourformutualbenet.2007TheUShousingmarketcrash-adirectresultofover-zealoussubprimelending-leadstheworldintotherecessioninwhichitisstillmired.2013BaselIIIanewregulatorysystemdesignedtostampoutriskybehaviouramongbankersisintroduced.IfitholdsitwillmarkthemostsignicantcurtailingofBanksbadbehaviourduetopublicpressure.ThreeKeyMomentsThe1980syuppiedomandtheseedsofchaosInhisbookLiarsPokerMichaelLewiswritesabouthisyouthfulexperiencesattheWallStreettradingrmSolomonBrothers.SolomonBrothersallbutinventedthemarketformortgagebondsoneofthemostprotablenancialmarketsofthe80sbecausetheywererudehungryandheartstoppinglyriskloving.Theywentontoloseouttothepioneersofthejunkbondmarket-tradersbiggerbadderandriskierthanthey.Theirstoryisillustrativeofthenanceworldofthe1980s.Thiswasanindustrygonesupernovacareeringupwardsandoutwardsandrewritingtherulebookasitwent. 37LewissnarrativecentresaroundthecareerofonemanLewieRanieriheadofSolomonsmortgagebondsdepartmentacrassobeseItalianwhoworkedhiswayfromajobinthemailroomtoapositionasoneofthefourorfivemostimportantmenonWallStreet.Hehadavisionofamortgagemarketdenedbyhugeclustersofbondsandheremadethemarketinhisownimagechanginganylawandbeatingdownanyrivalwhogotinhisway.AsthenancialworldexplodedmenlikeLewiebecamerareragain.TheMBAcrowdcamebacktodominateWallStreetandtheCitybutthesenewsharkswerentliketheconservativestatesmenoftheirparentsgeneration.Therewasnoturningbacknowandthecombinationofquickmindsandhungrywalletsensuredamarketthattoreitselfapartandrebuiltitselfmultipletimeseachtimericherthanbefore.TheJunkbondmarkettheinventionofnancialfuturesandotherepoch-makinginnovationssawprotssoarastheindustrybecamecomplexbeyondtheunderstandingofthemaninthestreetandinmanycasesthesuitintheboardroom.Thesemen-coldlyintelligentselfconsciouslystyledandunimaginablywealthy-weretherstofanewbreed.Soontheiconsofeverybusinessweresharp-suitedglamorousanddeeplyindividualisticnotjustinnancebutinadvertisingtheSaatchispropertyDonaldTrumpandeventhecreativeindustriesHarveyWeinstein.sati-ristsdecriedthesepeoplepaintingthemaspsychopathsPatrickBatemanandcartoonvillainsGordonGekko.Everyoneelsewashappytolookoninadoration.Thebusinessworldwouldneverbethesame.Gonewastheideaofthebossasbenefactor.Fromnowonwewereallinitforourselvesforbetterorforworse.The90s-00stheSub-primeMortgageCrisisandtheDisasterofInnovationThesharksofthe80shadtheirfuntemporarilystoppedbytherecessionofthelate-80sandearly90s.SparkedinitiallybyalargewobbleontheDowJonesIndustrialAverageandcompoundedbytheresponseofaweakSavingsandLoansindustryinNorthAmericathisrecessionwasnotcatastrophicbutitwasenoughtoseenancialproteeringcurtailedforashortwhile. 38Bythemid-90showeverthebrainsandthewalletswerebackbutthistimetheywereworkingtogether.Amongvariousnewinnovationsandgetrichquickschemesthemostinuentialwouldprovetobetheriseofsub-primemortgagelending.Justliketheinnovationsofthe80sthiswasacunningwaytoremakethemarketforbiggerreturns.Itinvolvedbankslendingtoclientswithpoorcreditratingsthensellingthosebondsonoverthenewlysoaringmarket.Unlikethe80showeveritsawunprecedentedco-operationbetweenthedifferentpartieswhostoodtogain.Fortheideatoworkitrequiredbankscreditagenciesandinsomecasesgovernmentbodiestocollaborateinriskoratleastforsomeofthosepartiestoturnablindeye.Inevitablythegoodtimesdidntlast.ThenewdominanceofdodgymortgagesledtoawaveofrepossessionswhichdrovetheUShousingmarketdownatafrighteningspeed.Thisledtoacollapseintheconstructionindustrymassivejoblossestheinfamouscreditcrunchandeventuallytheglobalrecessioninwhichmostofthedevelopedworldisstillmired.SowhywasthisdifferentintheeyesofthepublictotheusualpatternofboomandbustTheissueisoneoflosttrust.Ratherthantheactionsofmanycrazedindividualsthesubprimemortgagecrisiswascausedinpartbythecollaborativedecisionsofthosewhoaresupposedtopro-tectuspoliticiansandlegislatorscreditagenciesnancialregulatorsandmore.Consequentlytheglobalnancialcrisisimpacteddramaticallyandpossiblyirreversiblyonpublictrustinpoliticiansandaboveallbankers.SincethecrisisweveseenanunprecedentedappetiteforscandalsinvolvingthemonetaryhabitsofthepowerfulfromMPsexpensestoLIBOR-riggingtoUKgovernmentdecisionsregardingbailoutsforprivatebanks.Askanyjournalistandtheylltellyoutheonlyhealthysectoroftheirprofessionisnancialjournalism.WhyThepublicwantbankerswatchedlikehawks.TodayNowEconomyNewResponsibilityTheexcessesofthenoughtiesandthelongbitterrecessionthatfollowedthemhavelefttheworldofnancenotonlywithamonumentalimageproblembutabusinessstrategy 39whichmaybefundamentallyuntenable.Cowedandbrokentheworldofnanceishavingtoreadjustitsexpectationsandinmanycasesgocrawlingbacktotheconsumersitabandoned.Onceagainitsproblemsarethoseofeverybusinesswritlarge.AcrossEuroperegulationistheorderoftheday.Someofthisappearsmotivateddirectlybythepublicmood.TheEUcaponbonusesandaslewofproposedRobinHoodTaxesacrossthecontinentallplaytoagallerywhichisbayingforbankerblood.OtherruleslikethoseintroducedunderBasel3aregenuineattemptstoalteraculturewhichseemsfundamentallywiredforcrisis.Thebigbeastsincreasinglyndtheirfutureslookingbleak.Equitiestradingoncethebeatingheartofbankingisnowbarelyprotable-averagesharevolumesinAmericahavefallenby37sincethecrisisandsince2007therevenuegeneratedbytradingshareshasfallenineveryyearbarone.Despitethisthegreyhairsinchargestillclingtothebusiness.Technologytooiscausingproblems.Nowthatoneonlyneedsthebestalgorithmratherthanthebesthumantalenttosecondguessthemarketleanmeancompetitorshavesprungupandareinmanycasesrakingitin.Amidsuchharshclimesmanybanksarerealisingtheyhavenochoicebuttoadoptanoweconomyattitudeofgreatertransparencybetterethicsandafocusontheconsumer.Barclaysarespendingswathesoftheirtrainingbudgetoninstillinganewcorporatevaluessysteminemployeesacrosstheorganisation.MuchofRBSsrecentrestructurehasbeendesignedtoincreasefocusonUKretailbanking.Forbankingasforsomanybusinessesthepartyisoverbutintherelativequietofthekitchentherearebenetstobehad.Creativeconsumerfocusedstrategynewethicalhabitsandnewfreedomforsmallstartupsareallopportunitiesforthosewhoknowhowtousethem.ConclusionTheseoperatingconditionsarevariedintheirimplications.Howeverallofthemhaveonethingincommontheybreeduncertainty.IntheNowEconomynomarketissecurenoindividual 40orbrandisabovecriticismandwholetectonicplatescanshiftonthewordsofoneidiotonTwitter.Perhapstwaseverthusbutifitwaswedidntrealiseituntilrecently.AtBorkowski.dowespecialiseinhelpingyoutoequipyourselfforuncertaintyshowingyouthestorieswhichdriveyouandthethingsthatmakeyouspecialthethingswhichwillbewithyouthroughthickandthin.Ifyoureinterestedgetintouchathelloborkowski.doDesignStudioDavidHillman