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HOW TO CREATE A LIVING, BREATHING

CORPORATION

The Growing Importance of Cultural Understanding for


Brands

The excerpt discusses the growing importance of cultural


understanding for brands that wish to remain relevant and
profitable in an ever-changing marketplace. It introduces the idea
of a Chief Culture Officer (CCO) - a new role for the 21st century
corporation to help bridge the gap between the company and
contemporary culture.

Historical Struggles of Corporations with Cultural Trends

The book traces how corporations have historically struggled to


stay in touch with cultural trends and changes, often at great cost.
Examples are given of Levi Strauss, Quaker, and Facebook
missing key cultural shifts, leading to billions in losses. The author
argues this is because "culture" is often seen as something
outside the corporation's domain, left to outside consultants or
interns. Yet culture is where opportunity, innovation, and threat
originate - it is too important to be ignored.

Role of the Chief Culture Officer in Navigating Cultural


Change

The role of the CCO is to be an expert in contemporary culture -


both its fads and deeper structures. The CCO can help the
corporation navigate cultural change, spot emerging trends, and
weave cultural meaning into the brand. Using examples like Nike,
Volkswagen, and Motorola, the book illustrates how a skilled CCO
can create tremendous value.

Success Story of Motorola with a Chief Culture Officer

Motorola struggled for years, trapped between nimble


competitors. But when Geoffrey Frost joined as a sort of unofficial
CCO, he was able to shepherd the game-changing Razr phone
through the corporation's internal processes, going from 2 million
expected sales to 50 million. This shows the power of a CCO to
identify and actualize cultural opportunities.

Exploring the Concept of Emergent Order

The book also explores the concept of "emergent order" - the idea
that complex patterns and meanings can arise spontaneously
from seemingly random or chaotic cultural activity. It uses
examples like the "I ♥ NY" campaign and Nike's role in reshaping
American attitudes towards fitness to show how brands can tap
into these emergent cultural forces.[ 252627 ]

Challenges Faced by Coca-Cola in Adapting to Cultural


Shifts

In contrast, the book cites the cautionary tale of Coca-Cola, which


struggled to adapt as American culture moved away from the
soda fountain and the white picket fence. Only when it started to
engage with newer cultural ideas around self-transformation did it
begin to reconnect with consumers. [ 121 ]

The Cultural Intelligence Essential for Corporations

The key, the book argues, is for corporations to have a dedicated


CCO who can monitor the constantly shifting cultural landscape,
spot patterns and opportunities, and work to embed the brand
within emerging cultural currents. This cultural intelligence is
essential for navigating an environment of accelerating change
and fragmentation. [ 839394 ]

Without a CCO, the book contends, corporations are doomed to be


caught off guard by cultural shifts, lurching from one fad to the
next, or clinging to outdated notions of the consumer. The ability
to read and respond to culture is now a core competency, on par
with mastering operations, finance, or marketing. The CCO is
presented as a vital new role to help corporations thrive amidst
the chaotic currents of 21st century culture. [ 96 ]

Here is a 1000 word summary of the key points:

Discussion on Chief Culture Officer in Relation to


Companies
The article discusses the importance of appointing a Chief Culture
Officer (CCO) and the concept of emergent order in relation to
companies like Volkswagen (VW) and Nike. [ 1031322 ]

The Role of the Chief Culture Officer in Managing Cultural


Landscape

The role of the CCO is to monitor and manage the cultural


landscape that shapes consumer behavior and product
development. The CCO needs to understand emergent cultural
trends and patterns in order to help the company navigate an
increasingly complex and dynamic market environment. [ 9596 ]

Understanding Emergent Order in Cultural Changes

Emergent order refers to the unpredictable, bottom-up cultural


changes that arise organically from consumer behavior and
interactions. This is in contrast to the top-down, controlled
approach to culture that many companies have traditionally
taken.[ 2750 ]

Challenges Faced by Companies like VW and Nike

Companies like VW and Nike have faced challenges due to the


emergence of new cultural forces that were not anticipated by
their traditional management structures. The CCO can help
companies like this adapt more effectively to emergent cultural
changes. [ 1039596 ]

VW's Struggle with Shifting Consumer Preferences

For example, VW struggled to respond to the increased consumer


demand for smaller, more fuel-efficient cars driven by
environmental concerns. Their traditional product development
processes were not agile enough to keep up with these rapidly
shifting cultural trends. [ 2750 ]

Nike's Challenges with Emerging Youth Subcultures

Similarly, Nike faced challenges as new youth subcultures


emerged, creating demand for athletic footwear and apparel that
did not align with Nike's established brand identity and product
offerings. The company struggled to adapt quickly enough to
these cultural shifts. [ 102 ]

The CCO can help companies like VW and Nike by:

1) Closely monitoring cultural changes and emerging consumer


trends through immersive ethnographic research. This allows the
company to anticipate shifts in consumer preferences and
behaviors. [ 112 ]

2) Fostering a more collaborative, improvisational culture within


the organization that can rapidly prototype and experiment with
new product ideas. This enables the company to be more
responsive to emergent cultural forces. [ 515291 ]

3) Acting as a bridge between the company and the external


cultural landscape. The CCO can translate cultural insights into
actionable product and marketing strategies. [ 949596 ]

4) Promoting a more expansive, open-ended approach to brand


identity and storytelling. Rather than trying to tightly control the
brand narrative, the CCO embraces the dynamic, collaborative
nature of contemporary culture. [ 82 ]

5) Developing new organizational structures and processes that


can coordinate the company's response to emergent cultural
trends across different functions (e.g. R&D, marketing,
design).[ 1035191 ]

Shifting to a Nimble, Responsive Model with CCO Role

Overall, the article argues that companies need to shift away from
a static, top-down approach to culture and adopt a more nimble,
responsive model exemplified by the CCO role. This allows them
to better navigate the increasingly complex, unpredictable
cultural forces shaping consumer behavior and product
innovation. [ 1039596 ]

Embracing Emergent Order for Creativity and


Competitiveness

The key is for companies to acknowledge the reality of emergent


order - the organic, bottom-up cultural changes that defy
traditional management control. By embracing this more dynamic
perspective and empowering a CCO to manage it, companies can
unlock new sources of creativity, responsiveness and long-term
competitiveness.[ 949596 ]

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