Tuesday, June 26, 2007

The Whole World Is Watching

By THOMAS L. FRIEDMAN
Op-Ed Columnist
The New York Times
June 27, 2007

Three years ago, I was catching a plane at Boston’s Logan airport and went to buy some magazines for the flight. As I approached the cash register, a woman coming from another direction got there just behind me — I thought. But when I put my money down to pay, the woman said in a very loud voice: “Excuse me, I was here first!” And then she fixed me with a piercing stare that said: “I know who you are.” I said I was very sorry, but I was clearly there first.

If that happened today, I would have had a very different reaction. I would have said: “Miss, I’m so sorry. I am entirely in the wrong. Please, go ahead. And can I buy your magazines for you? May I buy your lunch? Can I shine your shoes?”

Why? Because I’d be thinking there is some chance this woman has a blog or a camera in her cellphone and could, if she so chose, tell the whole world about our encounter — entirely from her perspective — and my utterly rude, boorish, arrogant, thinks-he-can-butt-in-line behavior. Yikes!

When everyone has a blog, a MySpace page or Facebook entry, everyone is a publisher. When everyone has a cellphone with a camera in it, everyone is a paparazzo. When everyone can upload video on YouTube, everyone is filmmaker. When everyone is a publisher, paparazzo or filmmaker, everyone else is a public figure. We’re all public figures now. The blogosphere has made the global discussion so much richer — and each of us so much more transparent.

The implications of all this are the subject of a new book by Dov Seidman, founder and C.E.O. of LRN, a business ethics company. His book is simply called “How.” Because Seidman’s simple thesis is that in this transparent world “how” you live your life and “how” you conduct your business matters more than ever, because so many people can now see into what you do and tell so many other people about it on their own without any editor. To win now, he argues, you have to turn these new conditions to your advantage.

For young people, writes Seidman, this means understanding that your reputation in life is going to get set in stone so much earlier. More and more of what you say or do or write will end up as a digital fingerprint that never gets erased. Our generation got to screw up and none of those screw-ups appeared on our first job résumés, which we got to write. For this generation, much of what they say, do or write will be preserved online forever. Before employers even read their résumés, they’ll Google them.

“The persistence of memory in electronic form makes second chances harder to come by,” writes Seidman. “In the information age, life has no chapters or closets; you can leave nothing behind, and you have nowhere to hide your skeletons. Your past is your present.” So the only way to get ahead in life will be by getting your “hows” right.

Ditto in business. Companies that get their hows wrong won’t be able to just hire a P.R. firm to clean up the mess by a taking a couple of reporters to lunch — not when everyone is a reporter and can talk back and be heard globally.

But this also creates opportunities. Today “what” you make is quickly copied and sold by everyone. But “how” you engage your customers, “how” you keep your promises, and “how” you collaborate with partners — that’s not so easy to copy, and that is where companies can now really differentiate themselves.

“When it comes to human conduct there is tremendous variation, and where a broad spectrum of variation exists, opportunity exists,” writes Seidman. “The tapestry of human behavior is so varied, so rich and so global that it presents a rare opportunity, the opportunity to outbehave the competition.”

How can you outbehave your competition? In Michigan, Seidman writes, one hospital taught its doctors to apologize when they make mistakes, and dramatically cut their malpractice claims. In Texas, a large auto dealership allowed every mechanic to spend freely whatever company money was necessary to do the job right, and saw their costs actually decline while customer satisfaction improved. A New York street doughnut-seller trusted his customers to make their own change and found he could serve more people faster and build the loyalty that keeps them coming back.

“We do not live in glass houses (houses have walls); we live on glass microscope slides ...visible and exposed to all,” he writes. So whether you’re selling cars or newspapers (or just buying one at the newsstand), get your hows right — how you build trust, how you collaborate, how you lead and how you say you’re sorry. More people than ever will know about it when you do — or don’t.

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