Bubbles, Bozos and the Mediocrity Sandwich

I spent most of my professional life inside the high-tech bubble. Having now survived the better part of a decade outside said bubble, I have achieved enough distance to be able to appreciate the lampooning skills of Dan Lyons. If that name doesn’t sound familiar, you may have seen his work. He was the real person behind the Fake Steve Jobs blog. He was also the senior technology editor for Forbes and Newsweek prior to being cut loose in the print media implosion. He later joined the writing staff of Mike Judge’s brilliant HBO series Silicon Valley.

Somewhere in that career arc, Lyons briefly worked at a high tech start up.  From that experience, he wrote Disrupted: My Misadventure in the Start Up Bubble.” It gives new meaning to the phrase “painfully funny.”

After being cast adrift by Forbes, Lyons decided to change his perspective on the Bubble from “outside looking in” to “inside looking out.” He wanted to jump on the bubble band wagon, grab a fistful of options and cash in. And so he joined HubSpot as a content producer for their corporate blog. The story unfolds from there.

One particularly sharp and insightful chapter of the book recalls Steve Job’s “Bozo Explosion”:

“Apple CEO Steve Jobs used to talk about a phenomenon called a ‘bozo explosion,’ by which a company’s mediocre early hires rise up through the ranks and end up running departments. The bozos now must hire other people, and of course they prefer to hire bozos. As Guy Kawasaki, who worked with Jobs at Apple, puts it: ‘B players hire C players, so they can feel superior to them, and C players hire D players.’ “

The Bozo Explosion is somewhat unique to tech start-ups, mainly because of some of the aspects of the culture I talked about in a previous column. But I ran into my own version back in my consulting career. And I ran into it in all kinds of companies. I used to call it the Mediocrity Sandwich.

The Mediocrity Sandwich lives in middle management. I used to find that the people at the C Level of the company were usually pretty smart and competent (that said, I did run across some notable exceptions in my time). I also found that the people found on the customer facing front lines of the company were also pretty smart and – more importantly – very aware of the company’s own issues.

But addressing those issues invariably caused a problem. You have senior executives who were certainly capable of fixing the problems, whatever they might be. And you had front line employees who were painfully aware of what the problems were and motivated to implement solutions. But all the momentum of any real problem-solving initiative used to get sucked out somewhere in the middle of the corporate org chart. The problem was the Mediocrity Sandwich.

You see, I don’t think the Bozo Explosion is so much a pyramid – skinny at the top, broad at the bottom – as it is an inverted U-Shaped curve. I think “bozoism” tends to peak in the middle. You certainly have the progression from A’s to B’s to C’s as you move down from the top executive rungs. But then you have the inverse happening as you move from Middle Management to the front lines. The problem is the attrition of competence as you became absorbed into the organization. It’s the Bozo Explosion in reverse.

I usually found there was enough breathing room for competence to survive at the entry level in the organization. There were enough degrees of separation between the front line and the from the bozos in middle management. But as you started to climb the corporate ladder, you kept getting closer to the bozos. Your degree of job frustration began to climb as they had more influence over your day-to-day work. Truly competent players bailed and moved on to a less bozo-infested environment. Those that remained either were born bozos or had “bozo”ness thrust upon them. Either way, as you climbed towards middle management, the bozo factor climbed in lock step. The result? A bell curve of bozos centered in the middle between the C-Level and the front lines.

This creates a poisonous outlook for the long-term prospects of a company. Eventually, the C level executive will age out of their jobs. But who will replace them? The internal farm team is a bunch of bozos. You can recruit from outside, but then the incoming talent inherits a Mediocrity Sandwich. The company begins to rot from within.

For companies to truly change, you have to root out the bozo-rot, but this is easier said than done. If there is one single thing that bozos are good at, it is bozo butt-covering.

The Fundamentals of an Evil Marketplace

Last week, I talked about the nature of tech companies and why this leads to them being evil. But as I said, there was an elephant in the room I didn’t touch on — and that’s the nature of the market itself. The platform-based market also has inherent characteristics that lead toward being evil.

The problem is that corporate ethics are usually based on the philosophies of Milton Friedman, an economist whose heyday was in the 1970s. Corporations are playing by a rule book that is tragically out of date.

Beware the Invisible Hand

Friedman said, “The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.”

This is a porting over of Adam Smith’s “Invisible Hand” theory from economics to ethics: the idea that an open and free marketplace is self-regulating and, in the end, the model that is the most virtuous to the greatest number of people will take hold.

That was a philosophy born in another time, referring to a decidedly different market. Friedman’s “virtue” depends on a few traditional market conditions, idealized in the concept of a perfect market: “a market where the sellers of a product or service are free to compete fairly, and sellers and buyers have complete information.”

Inherent in Friedman’s definition of market ethics is the idea of a deliberate transaction, a value trade driven by rational thought. This is where the concept of “complete information” comes in. This information is what’s required for a rational evaluation of the value trade. When we talk about the erosion of ethics we see in tech, we quickly see that the prerequisite of a deliberate and rational transaction is missing — and with it, the conditions needed for an ethical “invisible hand.”

The other assumption in Friedman’s definition is a marketplace that encourages open and healthy competition. This gives buyers the latitude to make the choice that best aligns with their requirements.

But when we’re talking about markets that tend to trend towards evil behaviors, we have to understand that there’s a slippery slope that ends in a place far different than the one Friedman idealized.

Advertising as a Revenue Model

For developers of user-dependent networks like Google and Facebook, using advertising sales for revenue was the path of least resistance for adoption — and, once adopted by users, to profitability. It was a model co-opted from other forms of media, so everybody was familiar with it. But, in the adoption of that model, the industry took several steps away from the idea of a perfect market.

First of all, you have significantly lowered the bar required for that rational value exchange calculation. For users, there is no apparent monetary cost. Our value judgement mechanisms idle down because it doesn’t appear as if the protection they provide is needed.

In fact, the opposite happens. The reward center of our brain perceives a bargain and starts pumping the accelerator. We rush past the accept buttons to sign up, thrilled at the new capabilities and convenience we receive for free. That’s the first problem.

The second is that the minute you introduce advertising, you lose the transparency that’s part of the perfect market. There is a thick layer of obfuscation that sits between “users” and “producers.” The smoke screen is required because of the simple reality that the best interests of the user are almost never aligned with the best interests of the advertiser.

In this new marketplace, advertising is a zero-sum game. For the advertiser to win, the user has to lose. The developer of platforms hide this simple arithmetic behind a veil of secrecy and baffling language.

Products That are a Little Too Personal

The new marketplace is different in another important way: The products it deals in are unlike any products we’ve ever seen before.

The average person spends about a third of his or her time online, mostly interacting with a small handful of apps and platforms. Facebook alone accounts for almost 20% of all our waking time.

This reliance on these products reinforces our belief that we’re getting the bargain of a lifetime: All the benefits the platform provides are absolutely free to us! Of course, in the time we spend online, we are feeding these tools a constant stream of intimately personal information about ourselves.

What is lurking behind this benign facade is a troubling progression of addictiveness. Because revenue depends on advertising sales, two factors become essential to success: the attention of users, and information about them.

An offer of convenience or usefulness “for free” is the initial hook, but then it becomes essential to entice them to spend more time with the platform and also to volunteer more information about themselves. The most effective way to do this is to make them more and more dependent on the platform.

Now, you could build conscious dependency by giving users good, rational reasons to keep coming back. Or, you could build dependence subconsciously, by creating addicts. The first option is good business that follows Friedman’s philosophy. The second option is just evil. Many tech platforms — Facebook included — have chosen to go down both paths.

The New Monopolies

The final piece of Friedman’s idealized marketplace that’s missing is the concept of healthy competition. In a perfect marketplace, the buyer’s cost of switching  is minimal. You have a plethora of options to choose from, and you’re free to pursue the one best for you.

This is definitely not the case in the marketplace of online platforms and tools like Google and Facebook. Because they are dependent on advertising revenues, their survival is linked to audience retention. To this end, they have constructed virtual monopolies by ruthlessly eliminating or buying up any potential competitors.

Further, under the guise of convenience, they have imposed significant costs on those that do choose to leave. The net effect of this is that users are faced with a binary decision: Opt into the functionality and convenience offered, or opt out. There are no other choices.

Whom Do You Serve?

Friedman also said in a 1970 paper that the only social responsibility of a business is to Increase its profits. But this begs the further question, “What must be done — and for whom — to increase profits?” If it’s creating a better product so users buy more, then there is an ethical trickle-down effect that should benefit all.

But this isn’t the case if profitability is dependent on selling more advertising. Now we have to deal with an inherent ethical conflict. On one side, you have the shareholders and advertisers. On the other, you have users. As I said, for one to win, the other must lose. If we’re looking for the root of all evil, we’ll probably find it here.

Why Good Tech Companies Keep Being Evil

You’d think we’d have learned by now. But somehow it still comes as a shock to us when tech companies are exposed as having no moral compass.

Slate recently released what it called the “Evil List”  of 30 tech companies compiled through a ballot sent out to journalists, scholars, analysts, advocates and others. Slate asked them which companies were doing business in the way that troubled them most. Spoiler alert: Amazon, Facebook and Google topped the list.  But they weren’t alone. Rounding out the top 10, the list of culprits included Twitter, Apple, Microsoft and Uber.

Which begs the question: Are tech companies inherently evil — like, say a Monsanto or Phillip Morris — or is there something about tech that positively correlates with “evilness”?

I suspect it’s the second of these.  I don’t believe Silicon Valley is full of fundamentally evil geniuses, but doing business as usual at a successful tech firm means there will be a number of elemental aspects of the culture that take a company down the path to being evil.

Cultism, Loyalism and Self-Selection Bias

A successful tech company is a belief-driven meat grinder that sucks in raw, naïve talent on one end and spits out exhausted and disillusioned husks on the other. To survive in between, you’d better get with the program.

The HR dynamics of a tech startup have been called a meritocracy, where intellectual prowess is the only currency.

But that’s not quite right. Yes, you have to be smart, but it’s more important that you’re loyal. Despite their brilliance, heretics are weeded out and summarily turfed, optionless in more ways than one. A rigidly molded group-think mindset takes over the recruitment process, leading to an intellectually homogeneous monolith.

To be fair, high growth startups need this type of mental cohesion. As blogger Paras Chopra said in a post entitled “Why startups need to be cult-like, “The reason startups should aim to be like cults is because communication is impossible between people with different values.” You can’t go from zero to 100 without this sharing of values.

But necessary or not, this doesn’t change the fact that your average tech star up is a cult, with all the same ideological underpinnings. And the more cult-like a culture, the less likely it is that it will take the time for a little ethical navel-gazing.

A Different Definition of Problem Solving

When all you have is a hammer, everything looks like a nail. And for the engineer, the hammer that fixes everything is technology. But, as academic researchers Emanuel Moss and Jacob Metcalf discovered, this brand of technical solutionism can lead to a corporate environment where ethical problems are ignored because they are open-ended, intractable questions. In a previous column I referred to them as “wicked problems.”

As Moss and Metcalf found, “Organizational practices that facilitate technical success are often ported over to ethics challenges. This is manifested in the search for checklists, procedures, and evaluative metrics that could break down messy questions of ethics into digestible engineering work. This optimism is counterweighted by a concern that, even when posed as a technical question, ethics becomes ‘intractable, like it’s too big of a problem to tackle.’”

If you take this to the extreme, you get the Cambridge Analytica example, where programmer Christopher Wylie was so focused on the technical aspects of the platform he was building that he lost sight of the ethical monster he was unleashing.

A Question of Leadership

Of course, every cult needs a charismatic leader, and this is abundantly true for tech-based companies. Hubris is a commodity not in short supply among the C-level execs of tech.

It’s not that they’re assholes (well, ethical assholes anyway). It’s just that they’re, umm, highly focused and instantly dismissive of any viewpoint that’s not the same as their own. It’s the same issue I mentioned before about the pitfalls of expertise — but on steroids.

I suspect that if you did an ethical inventory of Mark Zuckerberg, Jeff Bezos, Larry Page, Sergey Brin, Travis Kalanik, Reid Hoffman and the rest, you’d find that — on the whole — they’re not horrible people. It’s just that they have a very specific definition of ethics as it pertains to their company. Anything that falls outside those narrowly defined boundaries is either dismissed or “handled” so it doesn’t get in the way of the corporate mission.

Speaking of corporate missions, leaders and their acolytes often are unaware — often intentionally — of the nuances of unintended consequences. Most tech companies develop platforms that allow disruptive new market-based ecosystems to evolve on their technological foundations. Disruption always unleashes unintended social consequences. When these inevitably happen, tech companies generally handle them one of three ways:

  1. Ignore them, and if that fails…
  2. Deny responsibility, and if that fails…
  3. Briefly apologize, do nothing, and then return to Step 1.

There is a weird type of idol worship in tech. The person atop the org chart is more than an executive. They are corporate gods — and those that dare to be disagreeable are quickly weeded out as heretics. This helps explain why Facebook can be pilloried for attacks on personal privacy and questionable design ethics, yet Mark Zuckerberg still snags a 92% CEO approval rating on Glassdoor.com.These fundamental characteristics help explain why tech companies seem to consistently stumble over to the dark side. But there’s an elephant in the room we haven’t talked about. Almost without exception, tech business models encourage evil behavior. Let’s hold that thought for a future discussion.

The Hidden Agenda Behind Zuckerberg’s “Meaningful Interactions”

It probably started with a good intention. Facebook – aka Mark Zuckerberg – wanted to encourage more “Meaningful Interactions”. And so, early last year, Facebook engineers started making some significant changes to the algorithm that determined what you saw in your News Feed. Here are some excerpts from Zuck’s post to that effect:

“The research shows that when we use social media to connect with people we care about, it can be good for our well-being. We can feel more connected and less lonely, and that correlates with long term measures of happiness and health. On the other hand, passively reading articles or watching videos — even if they’re entertaining or informative — may not be as good.”

That makes sense, right? It sounds logical. Zuckerberg went on to say how they were changing Facebook’s algorithm to encourage more “Meaningful Interactions.”

“The first changes you’ll see will be in News Feed, where you can expect to see more from your friends, family and groups.

As we roll this out, you’ll see less public content like posts from businesses, brands, and media. And the public content you see more will be held to the same standard — it should encourage meaningful interactions between people.”


Let’s fast-forward almost two years and we now see the outcome of that good intention…an ideological landscape with a huge chasm where the middle ground used to be.

The problem is that Facebook’s algorithm naturally favors content from like-minded people. And surprisingly, it doesn’t take a very high degree of ideological homogeneity to create a highly polarized landscape. This shouldn’t have come as a surprise. American Economist Thomas Schelling showed us how easy it was for segregation to happen almost 50 years ago.

The Schelling Model of Segregation was created to demonstrate why racial segregation was such a chronic problem in the U.S., even given repeated efforts to desegregate. The model showed that even when we’re pretty open minded about who our neighbors are, we will still tend to self-segregate over time.

The model works like this. A grid represents a population with two different types of agents: X and O. The square that the agent is in represents where they live. If the agent is satisfied, they will stay put. If they aren’t satisfied, they will move to a new location. The variable here is the level of satisfaction determined by what percentage of their immediate neighbours are the same type of agent as they are. For example, the level of satisfaction might be set at 50%; where the X agent needs at least 50% of its neighbours to also be of type X. (If you want to try the model firsthand, Frank McCown, a Computer Science professor at Harding University, created an online version.)

The most surprising thing that comes out of the model is that this threshold of satisfaction doesn’t have to be set very high at all for extensive segregation to happen over time. You start to see significant “clumping” of agent types at percentages as low as 25%. At 40% and higher, you see sharp divides between the X and O communities. Remember, even at 40%, that means that Agent X only wants 40% of their neighbours to also be of the X persuasion. They’re okay being surrounded by up to 60% Os. That is much more open-minded than most human agents I know.

Now, let’s move the Schelling Model to Facebook. We know from the model that even pretty open-minded people will physically segregate themselves over time. The difference is that on Facebook, they don’t move to a new part of the grid, they just hit the “unfollow” button. And the segregation isn’t physical – it’s ideological.

This natural behavior is then accelerated by the Facebook “Meaningful Encounter” Algorithm which filters on the basis of people you have connected with, setting in motion an ever-tightening spiral that eventually restricts your feed to a very narrow ideological horizon. The resulting cluster then becomes a segment used for ad targeting. We can quickly see how Facebook both intentionally built these very homogenous clusters by changing their algorithm and then profits from them by providing advertisers the tools to micro target them.

Finally, after doing all this, Facebook absolves themselves of any responsibility to ensure subversive and blatantly false messaging isn’t delivered to these ideologically vulnerable clusters. It’s no wonder comedian Sascha Baron Cohen just took Zuck to task, saying “if Facebook were around in the 1930s, it would have allowed Hitler to post 30-second ads on his ‘solution’ to the ‘Jewish problem’”. 

In rereading Mark Zuckerberg’s post from two years ago, you can’t help but start reading between the lines. First of all, there is mounting evidence that disproves his contention that meaningful social media encounters help your well-being. It appears that quitting Facebook entirely is much better for you.

And secondly, I suspect that – just like his defence of running false and malicious advertising by citing free speech – Zuck has an not-so-hidden agenda here. I’m sure Zuckerberg and his Facebook engineers weren’t oblivious to the fact that their changes to the algorithm would result in nicely segmented psychographic clusters that would be like catnip to advertisers – especially political advertisers. They were consolidating exactly the same vulnerabilities that were exploited by Cambridge Analytica.

They were building a platform that was perfectly suited to subvert democracy.

Running on Empty: Getting Crushed by the Crush It Culture

“Nobody ever changed the world on 40 hours a week.”

Elon Musk

Those damned Protestants and their work ethic. Thanks to them, unless you’re willing to put in a zillion hours a week, you’re just a speed bump on the road to all that is good in the world. Take Mr. Musk, for example. If you happen to work at Tesla, or SpaceX, or the Boring Company, Elon has figured out what your average work week should be, “(It) Varies per person, but about 80 sustained, peaking above 100 at times. Pain level increases exponentially above 80.”

“Pain level increases exponentially above 8o”? WTF, Mr. Musk!

But he’s not alone. Google famously built their Mountainview campus so employees never had to go home. Alibaba Group founder Jack Ma calls the intense work culture at his company a “huge blessing.” He calls it the “996” work schedule, 9 am to 9 pm 6 days a week. That’s 72 hours, if you’re counting. But even that wouldn’t cut it if you work for Elon Musk. You’d be a dead beat.

This is the “Crush It” culture, where long hours equate to dedication and – by extension – success. No pain, no gain.

We spend lots of time talking about the gain – so let me spend just one column talking about the pain. Pain such as mental illness, severe depression, long term disabilities and strokes. Those that overwork are more likely to over-eat, smoke, drink excessively and develop other self-destructive habits.

You’re not changing the world. You’re shortening your life. The Japanese call it karoshi; death by overwork.

Like so many things, this is another unintended consequence of a digitally mediated culture. Digital speeds everything up. But our bodies – and brains – aren’t digital. They burn out if they move too fast – or too long.

Overwork as a sign of superior personal value is a fairly new concept in the span of human history. It came from the Puritans who settled in New England. They believed that those that worked hard at their professions were those chosen to get into heaven. The more wealth you amassed from your work, the more evidence there was that you were one of the chosen.

Lately, the creeping Capitalist culture of over-working has most firmly embedded itself in the tech industry. There, the number of hours you work has become a proxy of your own worth. A twisted type of machismo has evolved and has trapped us all into thinking that an hour not spent at our jobs is an hour wasted. We are looked down upon for wanting some type of balance in our lives.

Unfortunately for the Musks and Mas and other modern-day task masters – the biology just doesn’t support their proposed work schedules.

First, our brains need rest. Back in the 18th century when those Puritans proved their worth through work, earning a living was usually a physical endeavour. The load of overwork was spread amongst the fairly simple mechanical machinery of our own bodies. Muscles got sore. Joints ached. But they recovered.

The brain is a much more complex beast. When it gets overworked, it loses its executive ability to focus on the task at hand. When your work takes place on a desktop or laptop where there are unlimited diversions just a click away, you suddenly find yourself 45 minutes into an unplanned YouTube marathon or scrolling through your Facebook feed. It becomes a downward spiral that benefits no one.

An overworked mind also loses its ability to spin down in the evening so you can get an adequate amount of sleep. When your co-workers start boasting of being able to function on just 3 or 4 hours of sleep – they are lying. They are lying to you, but worse, they are lying to themselves. Very few of us can function adequately on less than 7 or 8 hours of sleep. For the rest of us, the negative effects start to accumulate. A study found that sleep deprivation has the same impact as drinking too much. Those that were getting less than 7 hours of sleep faired the same or worse on a cognitive test as those that had a 0.05% blood alcohol level. The legal limit in most states is 0.08%.

Finally, in an essay on Medium, Rachel Thomas points out that the Crush It Culture is discriminatory. Those that have a disability or chronic illness simply have fewer hours in the day to devote to work. They need time for medical support and usually require more sleep. In an industry like Tech where there is an unhealthy focus on the number of hours worked, these workers – which Thomas says makes up at least 30% of the total workforce – are shut out.

The Crush It Culture is toxic. The science simply doesn’t support it. The only ones evangelizing it are those that directly benefit from this modernized version of feudalism.  It’s time to call Bullshit on them.

Why Elizabeth Warren Wants to Break Up Big Tech

Earlier this year, Democratic Presidential Candidate Elizabeth Warren posted an online missive in which she laid out her plans to break up big tech (notably Amazon, Google and Facebook). In it, she noted:

“Today’s big tech companies have too much power — too much power over our economy, our society, and our democracy. They’ve bulldozed competition, used our private information for profit, and tilted the playing field against everyone else. And in the process, they have hurt small businesses and stifled innovation.”

We, here in the west, are big believers in Adam Smith’s Invisible Hand. We inherently believe that markets will self-regulate and eventually balance themselves. We are loath to involve government in the running of a free market.

In introducing the concept of the Invisible Hand, Smith speculated that,  

“[The rich] consume little more than the poor, and in spite of their natural selfishness and rapacity…they divide with the poor the produce of all their improvements. They are led by an invisible hand to make nearly the same distribution of the necessaries of life, which would have been made, had the earth been divided into equal portions among all its inhabitants, and thus without intending it, without knowing it, advance the interest of the society, and afford means to the multiplication of the species.”

In short, a rising tide raises all boats. But there is a dicey little dilemma buried in the midst of the Invisible Hand Premise – summed up most succinctly by the fictitious Gordon Gekko in the 1987 movie Wall Street: “Greed is Good.”

More eloquently, economist and Nobel laureate Milton Friedman explained it like this:

“The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.” 

But here’s the thing. Up until very recently, the concept of the Invisible Hand dealt only with physical goods. It was all about maximizing tangible resources and distributing them to the greatest number of people in the most efficient way possible.

The difference now is that we’re not just talking about toasters or running shoes. Physical things are not the stock in trade of Facebook or Google. They deal in information, feelings, emotions, beliefs and desires. We are not talking about hardware any longer, we are talking about the very operating system of our society. The thing that guides the Invisible Hand is no longer consumption, it’s influence. And, in that case, we have to wonder if we’re willing to trust our future to the conscience of a corporation?

For this reason, I suspect Warren might be right. All the past arguments for keeping government out of business were all based on a physical market. When we shift that to a market that peddles influence, those arguments are flipped on their head. Milton Friedman himself said , “It (the corporation) only cares whether they can produce something you want to buy.” Let’s shift that to today’s world and apply it to a corporation like Facebook – “It only cares whether they can produce something that captures your attention.” To expect anything else from a corporation that peddles persuasion is to expect too much.

The problem with Warren’s argument is that she is still using the language of a market that dealt with consumable products. She wants to break up a monopoly that is limiting competition. And she is targeting that message to an audience that generally believes that big government and free markets don’t mix.

The much, much bigger issue here is that even if you believe in the efficacy of the Invisible Hand, as described by all believers from Smith to Friedman, you also have to believe that the single purpose of a corporation that relies on selling persuasion will be to influence even more people more effectively. None of most fervent evangelists of the Invisible Hand ever argued that corporations have a conscience. They simply stated that the interests of a profit driven company and an audience intent on consumption were typically aligned.

We’re now playing a different game with significantly different rules.

This is Why We Can’t Have Nice Things

Relevance is the new gold standard in marketing. In an  article in the Harvard Business Review written last year, John Zealley, Robert Wollan and Joshua Bellin — three senior execs at Accenture — outline five stages of marketing (paraphrased courtesy of a post from Phillip Nones):

  1. Mass marketing (up through the 1970s) – The era of mass production, scale and distribution.Marketing segmentation (1980s) – More sophisticated research enabling marketers to target customers in niche segments.
  2. Customer-level marketing (1990s and 2000s) – Advances in enterprise IT make it possible to target individuals and aim to maximize customer lifetime value.
  3. Loyalty marketing (2010s) – The era of CRM, tailored incentives and advanced customer retention.
  4. Relevance marketing (emerging) – Mass communication to the previously unattainable “Segment of One.”

This last stage – according to marketers past and present – should be the golden era of marketing:

“The perfect advertisement is one of which the reader can say, ‘This is for me, and me alone.” 

— Peter Drucker

“Audiences crave tailored messages that cater to them specifically and they are willing to offer information that enables marketers to do so.”

 Kevin Tash, CEO of Tack Media, a digital marketing agency in Los Angeles.

Umm…no! In fact, hell, no!

I agree that relevance is an important thing. And in an ethical world, the exchange Tash talks about would be a good thing, for both consumers and marketers. But we don’t live in such a world. The world we live in has companies like Facebook and Cambridge Analytica.

Stop Thinking Like a Marketer!

There is a cognitive whiplash that happens when our perspective changes from that of marketer to that of a consumer. I’ve seen it many times. I’ve even prompted it on occasion. But to watch it in 113 minutes of excruciating detail, you should catch “The Great Hack” on Netflix. 

The documentary is a journalistic peeling of the onion that is the Cambridge Analytica scandal. It was kicked off by the whistle blowing of Christopher Wylie, a contract programmer who enjoyed his 15 minutes of fame. But to me, the far more interesting story is that of Brittany Kaiser, the director of business Development of SCL Group, the parent company of Cambridge Analytica. The documentary digs into the tortured shift of perspective as she transitions from thinking like a marketer to a citizen who has just had her private data violated. It makes for compelling viewing.

Kaiser shifted her ideological compass about as far as one could possibly do, from her beginnings as an idealistic intern for Barack Obama and a lobbyist for Amnesty International to one of the chief architects of the campaigns supporting Trump’s presidential run, Brexit and other far right persuasion blitzkriegs. At one point, she justifies her shift to the right by revealing her family’s financial struggle and the fact that you don’t get paid much as an underling for Democrats or as a moral lobbyist. The big bucks are found in the ethically grey areas.  Throughout the documentary, she vacillates between the outrage of a private citizen and the rationalization of a marketer. She is a woman torn between two conflicting perspectives.

We marketers have to stop kidding ourselves and justifying misuse of personal data with statements like the one previously quoted from Kevin Tash. As people, we’re okay. I like most of the marketers I know. But as professional marketers, we have a pretty shitty track record. We trample privacy, we pry into places we shouldn’t and we gleefully high-five ourselves when we deliver the goods on a campaign — no matter who that campaign might be for and what its goals might be. We are very different people when we’re on the clock.

We are now faced with what may be the most important questions of our lives: How do we manage our personal data? Who owns it? Who stores it? Who has the right to use it? When we answer those questions, let’s do it as people, and not marketers. Because there is a lot more at stake here than the ROI rates on a marketing campaign.