Recent Reading 15

The latest in a sequence of lists of recently-read books, listed in reverse chronological order.

  • Michael Ovitz [2018]: Who is Michael Ovitz? A Memoir. USA: WH Allen.  This is a fascinating and well-written autiobiography by the co-founder and driving force behind Creative Artists Agency. CAA grew from nothing to dominate the agency business in movies and TV, and then entered M&A consultancy and advertising.  I always admired the chutzpah of this strategy and marveled at its success.  The book explains how CAA’s creative bundling of the products of its writers, actors, musicians, directors and producers enabled it to grow as an agency, and also enabled the diversification:  the expertise gained in strategizing and financially evaluating creative bundles was used to value Hollywood studios (with their back catalogues) as potential acquisition targets. Likewise, the creativity in bundling and the access to diverse talent was used to design successful advertisements.  What surprised me reading this book was that the diversification ended after just two acquisition assignments and one advertising project (Coca Cola’s polar bears).  The key reason for this seems to have been the opposition of Mr Ovitz’s partners and colleagues at CAA, despite the handsome and arguably unearnt rewards his efforts brought many of them.  No good deed ever goes unpunished, it seems.  // The book also presents his experiences as President at Disney.  Although of course we only hear his side of that story, he does seem to have been undermined from before he even began work there. // Overall, the writing is articulate and reflective, and he seems to have grown personally through his career and his apparent failures.  I greatly admire his continued desire and willingness to learn new things – new skills, new businesses, new industries, new cultures, new hobbies.  Doing this requires rare, personal courage.  Few people in American business were as willing as he was to immerse themselves in Japanese culture when doing business in Japan, for instance.  One characteristic Mr Ovitz does not ever display is smugness, and this absence is admirable.
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Vacuum cleaners generating hot air

Apparently, British inventor James Dyson has argued that more people should study engineering and fewer “French lesbian poetry”.    Assuming he is correctly quoted, there are a couple of things one could say in response.
First, all Mr Dyson need do is pay engineers more than the going market rates, and he will attract more people  into the profession.   Likewise, he could give students scholarships to study engineering.   He, unlike most of the rest of us, has it in his direct personal power to achieve this goal.   I think it ill-behooves someone who moved his manufacturing operations off-shore to bemoan any lack of home-grown talents.
Second, no matter how wonderful the engineering technology or novelty of the latest, jet-propelled, wind-turbine-bladed vacuum cleaner, the technology will not sell itself.   For that, even the vacuum cleaners of the famous Mr Dyson need marketing and advertising.  And, marketing needs people who can understand and predict customer attitudes and behaviours, people who have studied psychology and sociology and anthropology and economics.  Marketing needs people who can analyze data, increasingly in large quantities and in real-time, people who have studied mathematics and statistics and computer science and econometrics.  Marketing needs people who can strategize, people who have studied game theory and military strategy and political science and history, and can emphathize with customers and competitors.   As Australian advertising man Philip Adams once noted, Marxists and ex-Marxists are often the best marketing strategists, because they think dialectically about the long term.
And advertising needs people who can manipulate images, people who have usually studied art or art history or graphic design or architecture.  Advertising needs people who can take photos and use movie cameras and direct films, people who have studied photography and cinematography and lighting and film and theatre studies and acting.  Advertising needs people who can write jingles and advertising scores, and play the music required, people who have studied music and song and musical instruments.   Advertising needs people who can build sets, acquire props, and obtain costumes, people who are good with their hands or who have studied fashion.   And, finally, advertising needs people who can write ad copy and scripts – often people have studied history and journalism and languages and literature and poetry – even, at times, I would guess, the poetry of French lesbians.
One reason Britain is a such a world leader in marketing and advertising, despite the long-term decline and poor management of its manufacturing industry,  is because of its many leading art colleges and universities teaching the humanities and social sciences.  The name of Dyson would not be known to households across the country and beyond without the contributions of many, many professionals who did not study engineering.
UPDATE (2012-12-01):  And if you are still wondering why more people studying engineering would not be sufficient for business success, consider this from Grant McCracken:

Culture is the sea in which business swims. We can’t do good innovation without it. We can’t do good marketing without it. And we can’t build a good corporate culture without it.”


A good woman in Africa

Marbury reports on the reaction of US Secretary of State Hilary Clinton to a question asked by a university student in Kinshasa about her husband’s opinion on some issue.  She appears to have taken umbrage at being asked for Bill’s opinion, as if she would have  no opinions of her own.

If the questioner were an Australian journalist (Norman Gunston, say*), then she would have been correct to take offence. But the questioner was Congolese, and the question could have been asked sincerely.  Perhaps no aspect of African culture is more distinct from contemporary, post-Protestant, western culture than the relationship between individuals and families.  In traditional African society, individuals would not normally have their own opinions; rather, they would defer to the group opinion of the extended family to which they belong.  These family opinions are reached in different ways, in some cases by discussion among the adults until a consensus emerges, in other cases by diktak by the most powerful family member (who may not necessarily be the eldest male).   The means of reaching shared opinions differ from one society to another, from one family to another, and even, within a single family, from one occasion to another.  In short, the locus of decision-making is not an individual but a group. 

Traditional Catholic culture has more in common with this idea than our post-Protestant western culture because in Catholic belief, it is the Church, as a whole, that mediates communications between Man and God, and which is the recipient of Christian grace.  Protestants allowed each person to speak to God him or herself directly, thus promoting (or perhaps examplifying or accompanying) the trend to individualism that has been a feature of western life these last two centuries or so.

This fact of African life has implications for anyone doing market research or opinion polling in Africa, since the standard method used for random variation of respondents within households in sample surveys (the so-called Kish Grid) does not work.  People speaking to sample surveyers, if they are willing to speak, want to give their family’s opinion not their own (if indeed, the concept of “their own opinion” makes any sense to them), and usually they want the designated household spokesperson to do the speaking. Depending on the specific culture, this designated person might be the eldest male, or it might be the youngest child, or the person with the most formal education.   I know this from my own experience doing market research surveys in Southern Africa, and I wrote about this experience for an anthropology journal.   Similarly, there are important implications for anyone designing and executing marketing campaigns or public health information campaigns in Africa, and perhaps elsewhere in the world (eg, Latin America).

On balance, I think Mrs Clinton should probably not have taken personal offence at the question.  But the fact that she did take umbrage points to the very profound cultural difference at play here.


* At a US press conference given to announce a movie about Watergate, Norman Gunston asked if the film would have any 18.5 minute gaps in it, as Nixon’s secret Oval Office tapes did, and whether former President Nixon would receive complimentary tickets to the film.

P. J. McBurney [1988]: On transferring statistical techniques across cultures: the Kish Grid. Current Anthropology, 29 (2): 323-5.

A salute to Flo Skelly

Watching Season 2 of Mad Men with its arc of the rise of a female copywriter (Peggy Olsen, played by Elisabeth Moss), I was reminded of that real pioneer woman in advertising, Florence Skelly, who died in 1998 aged 73.  I never had the good fortune to work with her, but I have worked with lots of people who did.  The stories about her were legion.    I recall especially hearing about a series of detailed presentations she gave in the mid-1990s on the attitudes and aspirations of teenagers — those in what we would now call late GenX and early GenY — a group she seemed to know better than any other researcher around.   The irony was that she herself was at the cusp of her eighth decade!
Interestingly, season 1 of Mad Men had a couple of scenes involving market researchers, but the one woman was a PhD psychologist with a Central European accent, apparently unable to be creative and clearly instantiating a different (albeit then-common) archetype to Flo Skelly.
On Mad Men,  a reminder that Ta-Nehisi Coates, mashing Karl Rove, last October captured the demographic of the typical viewer with great precision:

Even if I’ve never met you, I know you all. You guys are that dude at the country club with the beautiful date, holding a martini and a cigarette, standing against the wall and making snide comments about all the CSI-viewers who pass by. And you’re also a Muslim. Can’t forget Muslim.

Brand immortality

Catching up with films I missed when they first appeared, I have just watched that action-spy thriller of the almost-over Cold War, Little Nikita, which first appeared in 1988.

The story was fairly predictable, and the most exciting moment for me occurred at minute 77, when two of the protagonists, trying to flee San Diego for Mexico, turned a corner on which was located a NYNEX Business Center. These were a nationwide chain of 80 retail computer hardware and services outlets most of which NYNEX bought from IBM in 1986 (according to rumour, after a handshake over an inter-CEO game of golf), and then sold in 1991 to Computerland.    When NYNEX owned them, they comprised the third-largest non-franchise network of retail computer outlets in the US.

One of the seven Baby Bells (aka RBOCs) created by the break up of the Bell System in 1984, NYNEX was the only one to pursue an adult career as an IT services company, at one point earning sufficient revenues from software and related services to be placed in the Top-10 largest US software companies.    For all the synergies, however, telecommunications and software development are sufficiently different businesses, and/or NYNEX senior managers cared insufficiently for these differences, that NYNEX never appeared to take seriously their role as a software company.   Having cured itself of its untypical desire to be a leading software house by re-selling most of its purchases in this sector, NYNEX, a few mergers later, has now become Verizon.

It is nice to think that, in centuries to come, the NYNEX Business Centers brand will live on in the moving pictures.

Chicago – this is your moment, too

The election of Senator Barack Obama as President of the USA has brought to the fore his adopted home-town, Chicago, now reinforced by his selection of Chicago-based Congressman Rahm Emanuel as his White House Chief-of-Staff.   Chicago, hog-butcher to the world, was known first in the 19th-century for its dominance of the meat industry, and then its dominance of the markets for other agricultural commodities.  In the 20th century this led to dominance of the financial markets where such commodities, and later more sophisticated financial products, were traded.  With all this money, it is not surprising that the world’s first modern skyscrapers were built there too.
But Chicago has also been a centre for business consulting – for example, via Arthur Anderson (founded Chicago, 1913), and its spin-off Anderson Consulting (now Accenture) – and a centre for marketing research and marketing data analysis.   That particular thread includes AC Nielsen (founded Chicago, 1923) and Information Resources, Inc. (IRI, founded Chicago, 1977).   The three founders of IRI, John Malec, Gerald Eskin and William Walter, sought to take advantage of newly-deployed supermarket scanners to analyse tactical marketing data for fmcg products.   (Modern supermarket scanners began operations in the US from June 1974.)
But there is an earlier fibre to this thread:  Before the invention of the electronic computer, Chicago was also a centre of manufacturing of adding machines.  Data, and its analysis – practical, no-nonsense, mid-western, even – has been a key Chicago strength.
Peggy A. Kidwell [2001]: Yours for Improvement – The adding machines of Chicago, 1884-1930IEEE Annals of the History of Computing, 23 (3):  3 – 21.  July 2001.