Archive for the ‘leadership’ category


Reflections about Lee Iacocca—unfortunately, not all of it is positive

03.07.2019


The car Lee Iacocca will be remembered for, the 1965 Ford Mustang on the right.

Before I found out about Lee Iacocca’s passing, on the same day I Tweeted about one of the cars he was behind when he was president of Ford: the 1975 US Granada. Basically, Iacocca understood that Americans wanted style. That really was at the core of his thinking. It’s also why the Granada—really a warmed-over, restyled Falcon that had its roots in the late 1950s—was always compared to Mercedes-Benz models. It was a mass-market American pastiche of the German car, with the same size. It had a grille and hood ornament. But it was frightfully slow, underpowered, and heavy, one of the most inefficient cars that Americans could buy.
   It’s the antithesis of the Mustang, which Iacocca arguably spearheaded, though in his autobiography, he noted that so many people claimed to be the father of the Mustang that he didn’t want to be seen with the mother (or words to that effect—the book’s next to my partner who’s already gone to sleep as I write).
   That was a stylish car, too. It was a Falcon-based coupé. But it could be specified with the right power to match its looks, and it was priced and marketed brilliantly. Ford hit a home run, and Iacocca’s reputation as a car industry guru was sealed.
   He was also the man who came up with the idea for the Lincoln Continental Mark III. No, not the 1950s one (which technically wasn’t a Lincoln), the one that came out in the 1960s (Ford didn’t really follow a sequential numbering system—remember it went Mark, Mark II, III, IV, V, III, IV, V, VI, VII, VIII). The idea: stick a Rolls-Royce grille on a Thunderbird. It beat the Cadillac Eldorado, and Iacocca finished the ’60s on a high.
   I felt that history hadn’t been kind to the Mustang II, which also came out under Iacocca’s watch. The fact was it was a sales’ hit, at a time when Detroit was reeling from the 1973 fuel crisis. No V8s initially, which in the 21st century looks like a misstep; in 1974 it would have looked smart. Growing up, we didn’t think the II was as bad as history remembers.
   But the US range was, in some ways, lazy. GM was downsizing but Iacocca noted that people were still buying big cars. To give the impression of downsizing, Ford just renamed the Torino the LTD II. Look, it’s a smaller LTD! Not really: here was yet another car on old tech with another pastiche luxury-car grille.
   When Iacocca was fired from Ford, he went to Chrysler, and pulled off his greatest sales’ job yet: to secure loan guarantees from the Carter administration and turn the company around with a range of modern, front-wheel-drive cars. The K-car, and its derivatives, were a demonstration of great platform-sharing. He noted in his autobiography that Chrysler even worked out a way to shave a tiny amount from the length to fit more Ks on a railroad car. And Iacocca’s penchant for style re-emerged: not long after the original Plymouth Reliant and Dodge Aries, there were fancied up Chrysler LeBarons, and a woody wagon, then a convertible, the first factory US one since the 1976 Cadillac Eldorado. Most importantly, Chrysler got the T-115 minivans on sale before Renault got its Espace out, though after Nissan launched the first MPV, the smaller Prairie. Nevertheless, the minivan was an efficient family vehicle, and changed the face of motoring. Iacocca was right when he believed people want style, because it’s the SUV that has succeeded the MPV and minivan. SUVs are hardly efficient in most circumstances, but here we are in 2019, with minivan sales projected to fall, though Chrysler has managed to stay the market leader in its own country.
   Chrysler paid back its loans years early, and it was under Iacocca that the company acquired American Motors Corp., getting the Jeep brand (the real prize) in the process. And it’s thanks to François Castaing and others who came across from AMC that Chrysler wound up with its LH sedans, the “cab-forward” models that proved to be one of the company’s hits in the 1990s.
   While having saved Chrysler, it was burdened with acquisitions, and in Iacocca’s final full year as Chairman Lee, the company posted a $795 million loss, with the recession partly to blame. The press joked that LH stood for Last Hope.
   It’s an incredible record, with some amazing hits. They do outnumber the duds. But what really mars it is an incident of sexual harassment I learned some years ago that never appears in the official biographies. Now, I don’t have a sworn affidavit, so you can treat this as hearsay. But until I heard that from a good friend—the woman who was harassed—Iacocca was a personal hero of mine. I bought the autobiography. I could forgive the financial disgrace Chrysler was in for 1991—one year out of nearly a dozen isn’t a bad run, even though the writing was on the wall when so much money was spent on acquisitions, hurting working capital.
   I know, his daughters and their kids won’t appreciate what I just said. That it’s wrong to speak ill of the dead, especially when they can’t answer back. You could say that that was the era he was from, in an industry steeped in male privilege—his boss at Ford, Henry the second, was carrying on an affair behind his wife’s back. You might say that one incident that I know of shouldn’t mar this incredible business record. He has left his mark on history. It’s just when it happens to one of your own friends that it’s closer to home, and it’s hard for me to offer the effortless praise I would normally have done if not for that knowledge.

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The smart ones always seem to be the minority

24.05.2019


Pixabay

Each year, I mentor one student from my Alma Mater. I won’t reveal their identity or what we discuss, as these are privileged, but one thing that became apparent today is how each generation might think that young people are on to it. That they won’t fall for the same bullshit that we did because they are more savvy and can build on what’s gone before.
   The student I am working with is smart and does see through a lot of the BS. They’re working on an assignment at the moment about Facebook and they were asked in class whether Facebook should be regulated. Turns out that the majority of the class didn’t know about the scandals that had happened, and that most don’t even take in the news via traditional newsmedia (or even websites), but get their info via social media. In other words, they were quite content to be bubbled and fall victim to the subjective feeds provided to them by social media.
   A generation ago, I remember when older people thought we were on to it, that we could see through the BS—but we are the ones who created this latest lot of BS. We created the mechanisms where people are fed back their own opinions and told that the other side is wrong. Empathy went out the window partly because of social media. And now that these have been created, we’re not admitting we ****ed up. Mark Zuckerberg avoids summons, for Chrissakes, and his company, and most of Big Tech, lie like sociopaths. But we’ve tied up the next generation as well into this web where they don’t know the lack of substance behind what they’re seeing. Because maybe it’s just all too complicated to figure out—which is probably how the powers-that-be like to keep it, so we keep consuming the mainstream, easily digestible narratives. The few who break out of this will find allies, but then, they, too, are in a new bubble, convinced that surely with some like minds their thinking must be right, and why on earth don’t others find it as easy to grasp?

   It’s why movements like #DeleteFacebook haven’t really taken hold beyond idealists, and even though we have young people smart enough and aware enough to organize global climate-change protests today, I wonder if we’ll wake up and exit the Matrix. I have hope—hope that those with sufficient charisma to be within the system will be selfless and say the right things and cause others to realize what’s happening. There are glimmers here and there, but, like all movements, it needs a lot of people doing the same thing at the same time. Maybe they can be found … via the same tools that are being used to divide us.

Originally published at my NewTumblog.

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Posted in culture, internet, leadership, media, politics, technology | 2 Comments »


CSR is already woven into Māori leadership

23.04.2019

I was fascinated to read a New Zealand Herald story on the Māori asset base, though it wasn’t the financial part that hit me. What was more significant were the principles behind Māori businesses.
   About 15 years ago, when chatting to a woman representing a Māori winery, I said that she had an amazing opportunity to show that Māori were far ahead of the game when it came to corporate social responsibility, something that was close to my heart with my work for Medinge Group. It’s interesting to see that that impression I had in the mid-2000s wasn’t wrong, and is now backed up by Dr Maree Roche of Waikato University.
   She identifies five values behind Māori leadership, which blends their needs to support marginalized communities, kaupapa, and contemporary influences.
   The values are:

  • whakaiti (humility): the leader enables others but doesn’t take credit themselves;
  • ko tau rourou and manaakitanga (altruism): ensuring the well-being of others and the generosity of spirit;
  • whanaungatanga (others): collectivism and relationships with past, present and future generations;
  • tāria te wā and kaitiakitanga (long-term thinking and guardianship);
  • tikanga Māori (cultural authenticity).

   You’ll recognize a lot of the same words used in much of Medinge’s work on humanistic branding: the need for serving communities; to consider far more than the immediate quarter (‘finance is broken’); and being authentic.
   Māori may find themselves better equipped with their newer organizations to weave in a message about CSR, considering the successful ones already practise it for their own people. Translating that in an export market, for instance, to serving a cause that is of concern to that market, should be comparatively easier than for a company so entrenched in delivering quarterly results to shareholders. Promoting ties between tangata whenua and the export market could be of interest, especially in Asia where many of the same ideas about family, whānau and community are shared. They are in an advantageous position and those of us in New Zealand would be foolish to ignore it.

Originally published at the Medinge Group blog.

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Bypassing the media, Carlos Ghosn tells it as it is

10.04.2019

I haven’t blogged much about Carlos Ghosn, though I’ve Tweeted aplenty since his arrest last November. Earlier this week, his lawyers released a video of Ghosn stating his position, and it echoes much of what I had Tweeted. He couldn’t make a personal appearance at a press conference himself, thanks to some conveniently timed (for Nissan) evidence that prompted another arrest by the Japanese authorities.
   The way the original exposé was done and the way the Japanese mainstream media lapped up the one-sided story and propagated it verbatim told me immediately that something was rotten inside Nissan. A lack of investigation should always tell you that not all is what it seems.

   While it’s true that Nissan is worth more than Renault now, we can’t forget what a terrible shape it was in at the time the alliance was forged. While Nissan could have declared the Japanese equivalent of Chapter 11, it’s interesting to speculate how it would have emerged: would it have saved face or would consumers have lost confidence, as they have with Mitsubishi? And in the wake of Ghosn’s arrest, stories in the western media began appearing: Nissan’s performance was faltering (‘mediocre,’ says Ghosn). It had had a recent scandal and a major recall. More likely than not, it meant that certain heads were going to roll. To save themselves, they rolled their leader instead.
   We’ll see if there has been financial impropriety as things proceed, but to me there’s an element of xenophobia in the way the story has developed; and it was a surprise to learn at how ill-balanced the Japanese legal system is.
   I’ve been vocal elsewhere on how poorly I think elements of both companies have been run, but Ghosn does have a valid point in his video when he says that leadership can’t be based solely on consensus, as it’s not a way to propel a company forward.
   I’m keeping an open mind and, unlike some of the reporting that has gone on, maintaining that Ghosn is innocent till proved guilty. It’s dangerous to hop on to a bandwagon. It’s why I was a rare voice saying the Porsche Cayenne would succeed when the conventional wisdom among the press was that it would fail; and why I said Google Plus would fail when the tech press said it was a ‘Facebook-killer’. Ghosn deserves to be heard.

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Posted in business, cars, culture, France, leadership, media | No Comments »


Autocade turns 11 as the web turns 30

12.03.2019


The latest model to appear on Autocade today: the Mazda CX-30.

It’s March, which means Autocade has had another birthday. Eleven years ago, I started a car encyclopædia using Mediawiki software, and it’s since grown to 3,600 model entries. The story has been told elsewhere on this blog. What I hadn’t realized till today was that Autocade’s birthday and the World Wide Web’s take place within days of each other.
   The inventor of the web, Sir Tim Berners-Lee, still believes that it can be used as a force for good, which is what many of us hoped for when we began surfing in the 1990s. I still remember using Netscape 1·2 (actually, I even remember using 1·1 on computers that hadn’t updated to the newer browser) and thinking that here was a global communications’ network that could bring us all together.
   Autocade, and, of course, Lucire, were both set up to do good, and be a useful information resource to the public. Neither sought to divide in the way Facebook has; Google, which had so much promise in the late 1990s, has become a bias-confirmation machine that also pits ideologies against each other.
   The web, which turns 30 this week, still has the capacity to do great things, and I can only hope that those of us still prepared to serve the many rather than the few in a positive way begin getting recognized for our efforts again.
   For so many years I have championed transparency and integrity. People tell us that these are qualities they want. Yet people also tell surveys that Google is their second-favourite brand in the world, despite its endless betrayals of our trust, only apologizing after each privacy gaffe is exposed by the fourth estate.
   Like Sir Tim, I hope we make it our business to seek out those who unite rather than divide, and give them some of our attention. At the very least I hope we do this out of our own self-preservation, understanding that we have more to gain by allowing information to flow and people to connect. When we shut ourselves off to opposing viewpoints, we are poorer for it. As I wrote before, American conservatives and liberals have common enemies in Big Tech censorship and big corporations practising tax avoidance, yet social networks highlight the squabbles between one right-wing philosophy and another right-wing philosophy. We New Zealanders cannot be smug with our largest two parties both eager to plunge forward into TPPA, and our present government having us bicker over capital gains’ tax while leaving the big multinationals, who profit off New Zealanders greatly, paying little or no tax.
   A more understanding dialogue, which the web actually affords us, is the first step in identifying what we have in common, and once you strip away the arguments that mainstream media and others drive, our differences are far fewer than we think.
   Social media should be social rather than antisocial, and it’s almost Orwellian that they have this Newspeak name, doing the opposite to what their appellation suggests. The cat is out of the bag as far as Big Tech is concerned, but there are opportunities for smaller players to be places where people can chat. Shame it’s not Gab, which has taken a US-conservative bent at the expense of everything else, though they at least should be applauded for taking a stance against censorship. And my fear is that we will take what we have already learned on social media—to divide and to pile on those who disagree—into any new service. As I mentioned, Mastodon is presently fine, for the most part, because educated people are chatting among themselves. The less educated we are, the more likely we will take firm sides and shut our minds off to alternatives.
   The answer is education: to make sure that we use this wonderful invention that Sir Tim has given us for free for some collective good. Perhaps this should form part of our children’s education in the 2010s and 2020s. That global dialogue can only be a good thing because we learn and grow together. And that there are pitfalls behind the biggest brands kids are already exposed to—we know Google has school suites but they really need to know how the big G operates, as it actively finds ways to undermine their privacy.
   The better armed our kids are, the more quickly they’ll see through the fog. The young people I know aren’t even on Facebook other than its Messenger service. It brings me hope; but ideally I’d like to see them make a conscious effort to choose their own services. Practise what we preach about favouring brands with authenticity, even if so many of us fail to seek them out ourselves.

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Life inside Google—an ex-Googler airs the dirty laundry

19.10.2018

In amongst all the political fallout of the National Party this week—what I’m dubbing (and hashtagging) ‘caught in the Rossfire’—was a series (well, over 100) Tweets from Morgan Knutson, a designer who once worked for Google. Unlike most Googlers, especially the cult-like ones who refuse to help when you point out a fault with Google, Knutson decided he would be candid and talk about his experience. And it isn’t pretty. Start here:

Or, if you prefer, head to the Twitter page itself, or this Threader thread.
   As anyone who follows this blog knows, I’ve long suspected things to be pretty unhealthy within Google, and it turns out that it’s even worse than I expected.
   A few take-outs: (a) some of the people who work there have no technical or design experience (explains a lot); (b) there’s a load of internal politics; (c) the culture is horrible but money buys a lot of silence.
   Knutson claims to have received a lot of positive feedback, some in private messaging. His Tweets on the aftermath:

   This, I thought, summed it up better than I could, even though I’ve had a lot more space to do it:

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Musk apologies to Unsworth, only because teacher told him to

18.07.2018

Via Adeline Chua: I see Elon Musk has apologized to Vernon Unsworth. But it smacks of the apology a child would give after being compelled by his teacher to do so.

   Translation: ‘I wouldn’t have said anything if the Vern didn’t push me. It’s all Vern’s fault.’ Or, ‘Vern made me do it.’
   I stand by my earlier blog post.
   I also take issue that there were mistruths, having watched the interview. As far as I could tell, Unsworth gave his opinion: I never took his statements for anything but that. And he drew a conclusion—that it was all a publicity stunt—that he wasn’t alone in drawing. Musk seems very easily offended by an opinion.
   Even if Musk was sincere, and there is no denying that he devoted resources to his rescue submarine idea, how the whole thing played out did feel like a publicity stunt. It wouldn’t hurt to review just how that perception went out, and how communications could have been better.
   If he hadn’t burned the bridge with Unsworth, maybe he could have had one extra person to ask.
   I find it hard to believe that a South African, someone who described himself as an alpha male once, would actually consider ‘can stick his submarine where it hurts’ to be an actual suggestion he commit a sexual act rather than an insult.
   If we really want to pick hairs on mistruths, Musk inferred that Unsworth wasn’t even there because he didn’t see him. That was exactly what he wanted people to think.
   I admire Musk for a lot of what he has accomplished, and Lucire was an early supporter of Tesla, but this week’s news has prompted me, and others, to look back at how he has conducted himself.
   It’s the record of a privileged man who hasn’t endeared himself to others, as this blogger notes. One might add this link, about a Twitter-based cult that will attack those who go after him (especially if you’re a woman, it seems).
   Just another day on the playground we call Twitter, then.

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We’ve been here before: foreign-owned media run another piece supporting an asset sale

04.05.2018


Clilly4/Creative Commons

I see there’s an opinion piece in Stuff from the Chamber of Commerce saying the Wellington City Council should sell its stake in Wellington Airport, because it doesn’t bring in that much (NZ$12 million per annum), and because Auckland’s selling theirs.
   It’s not too dissimilar to calls for the Council to sell the Municipal Electricity Department a few decades ago, or any other post-Muldoon call about privatization.
   Without making too much of a judgement, since I haven’t inquired deeply into the figures, it’s interesting that the line often peddled by certain business groups, when they want governments to sell assets, is: ‘They should run things like households, and have little debt.’
   This never applies to themselves. When it comes to their own expansion, they say, ‘We don’t need to run things like households, we can finance this through debt.’
   The same groups say that governments should be run more like businesses.
   However, their advice is always for governments to be run like households.
   Has it escaped them that they are different beasts?
   I wouldn’t mind seeing government entities run like businesses, making money for their stakeholders, and said so when I campaigned for mayor.
   Doing this needs abandoning a culture of mediocrity at some of those entities. Some believe this is impossible within government, and there are credible examples, usually under former command economies. But then there are also decent examples of state-owned enterprises doing rather well, like Absolut, before they were sold off by the Swedish government. If you want something current, the Shanghai Automotive Industry Corp. is one of the most profitable car makers on the planet.
   The difference lies in the approach toward the asset.
   But what do I know? I come from Hong Kong where the civil service inherited from the British is enviably efficient, something many occidentals seem to believe is impossible—yet I live in a country where I can apply for, and get, a new passport in four hours. Nevertheless, that belief in inefficiency holds.
   Change your mindset: things are possible with the right people. Don’t be a Luddite.
   And therein lies why Stuff and I are on different planets.

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Posted in business, China, culture, globalization, leadership, media, New Zealand, politics, Sweden, Wellington | No Comments »


Is the death of expertise tied to the Anglosphere?

20.03.2018


Foreign and Commonwealth Office

Boris Johnson: usually a talented delivery, but with conflicting substance.

I spotted The Death of Expertise at Unity Books, but I wonder if the subject is as simple as the review of the book suggests.
   There’s a lot out there about anti-intellectualism, and we know it’s not an exclusively American phenomenon. Tom Nichols, the book’s author, writes, as quoted in The New York Times, ‘Americans have reached a point where ignorance, especially of anything related to public policy, is an actual virtue. To reject the advice of experts is to assert autonomy, a way for Americans to insulate their increasingly fragile egos from ever being told they’re wrong about anything. It is a new Declaration of Independence: No longer do we hold these truths to be self-evident, we hold all truths to be self-evident, even the ones that aren’t true. All things are knowable and every opinion on any subject is as good as any other.’
   I venture to say that the “death of expertise” is an Anglophone phenomenon. Head into Wikipedia, for instance, and you’ll find proof that the masses are not a good way to ensure accuracy, at least not in the English version. Head into the German or Japanese editions and you find fewer errors, and begin to trust the pages more.
   Given that many of “the people” cannot discern what is “fake news” and what is not, or who is a bot and who is not, then it’s absolutely foolhardy to propose that they also be the ones who determine the trustworthiness of a news source, as Facebook is wont to do.
   I can’t comment as much on countries I have spent less time in, but certainly in the Anglosphere, I’ve seen people advance, with confidence and self-authority, completely wrong positions, ones not backed up by real knowledge. You only need to visit some software support forums to see online examples of this phenomenon.
   When I visit Sweden, for instance, there’s a real care from individuals not to advance wrongful positions, although I admit I am limited by my own circles and the brief time I have spent there.
   It’s not so much that we don’t value expertise, it’s that the bar for what constitutes an expert is set exceptionally low. We’re often too trusting of sources or authorities who don’t deserve our reverence. And I wonder if it comes with our language.
   I’ll go so far as to say that the standing of certain individuals I had in my own mind was shattered when we were all going for the mayoralty in my two campaigns in 2010 and 2013. There certainly was, among some of my opponents, no correlation between knowledge and the position they already held in society. It didn’t mean I disliked them. It just meant I wondered how they got as far as they did without getting found out.
   Fortunately, the victor, whether you agreed with her policies or not, possessed real intelligence. The fact she may have political views at odds with yours is nothing to do with intelligence, but her own observations and beliefs. I can respect that (which is why I follow people on social media whose political views I disagree with).
   In turn I’m sure many of them disliked what I stood for, even if they liked me personally. Certainly it is tempting to conclude that some quarters in the media, appealing to the same anti-intellectualism that some of my rivals represented, didn’t like a candidate asserting that we should increase our intellectual capital and pursue a knowledge economy. No hard feelings, mind. As an exercise, it served to confirm that, in my opinion, certain powers don’t have people’s best interests at heart, and there is a distinct lack of professionalism (and, for that matter, diversity) in some industries. In other words, a mismatch between what one says one does, and what one actually does. Language as doublespeak.
   So is it speaking English that makes us more careless? Maybe it is: as a lingua franca in some areas, merely speaking it might put a person up a few notches in others’ estimation. Sandeep Deva Misra, in his blog post in 2013, believes that’s the case, and that we shouldn’t prejudge Anglophones so favourably if the quality of their thought isn’t up to snuff.
   Maybe that’s what we need to do more of: look at the quality of thought, not the expression or make a judgement based on which language it’s come in. As English speakers, we enjoy a privilege. We can demand that others meet us on our terms and think poorly when someone speaks with an accent or confuses your and you’re. It gives us an immediate advantage because we have a command of the lingua franca of business and science. It gives us the impunity to write fictions in Wikipedia or make an argument sound appealing through sound bites, hoping to have made a quick getaway before we’re found out. Political debate has descended into style over substance for many, although this is nothing new. I was saying, although not blogging, things like this 20 years ago, and my students from 1999–2000 might remember my thoughts on Tony Blair’s 1997 campaign as being high on rhetoric and light on substance. Our willingness to accept things on face value without deeper analysis, lands us into trouble. We’re fooled by delivery and the authority that is attached with the English language.
   You’ll next see this in action in a high-profile way when Facebook comes forth with more comment about Cambridge Analytica. I can almost promise you now that it won’t hold water.

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Posted in business, culture, globalization, India, leadership, media, New Zealand, politics, publishing, Sweden, UK, USA, Wellington | 2 Comments »


Facebook and Cambridge Analytica: the signs were there for years, if one only looked

20.03.2018

Facebook’s woes over Cambridge Analytica have only prompted one reaction from me: I told you so. While I never seized upon this example, bravely revealed to us by whistleblower Christopher Wylie and reported by Carole Cadwalladr and Emma Graham-Harrison of The Guardian, Facebook has shown itself to be callous about private data, mining preferences even after users have opted out, as I have proved on more than one occasion on this blog. They don’t care what your preferences are, and for a long time changed them quietly when you weren’t looking.
   And it’s nothing new: in October 2010, Emily Steel wrote, in The Wall Street Journal, about a data firm called Rapleaf that harvested Facebook information to target political advertisements (hat tip here to Jack Martin Leith).
   Facebook knew of a data breach years ago and failed to report it as required under law. The firm never acts, as we have seen, when everyday people complain. It only acts when it faces potential bad press, such as finally ceasing, after nearly five years, its forced malware downloads after I tipped off Wired’s Louise Matsakis about them earlier this year. Soon after Louise’s article went live, the malware downloads ceased.
   Like all these problems, if the stick isn’t big enough, Facebook will just hope things go away, or complain, as it did today, that it’s the victim. Sorry, you’re not. You’ve been complicit more than once, and violating user privacy, as I have charged on this blog many times, is part of your business practice.
   In this environment, I am also not surprised that US$37,000 million has been wiped off Facebook’s value and CEO Mark Zuckerberg saw his net worth decline by US$5,000 million.
   Those who kept buying Facebook shares, I would argue, were unreasonably optimistic. The writing surely was on the wall in January at the very latest (though I would have said it was much earlier myself), when I wrote, ‘All these things should have been sending signals to the investor community a long time ago, and as we’ve discussed at Medinge Group for many years, companies would be more accurately valued if we examined their contribution to humanity, and measuring the ingredients of branding and relationships with people. Sooner or later, the truth will out, and finance will follow what brand already knew. Facebook’s record on this front, especially when you consider how we at Medinge value brands and a company’s promise-keeping, has been astonishingly poor. People do not trust Facebook, and in my book: no trust means poor brand equity.’
   This sounds like my going back to my very first Medinge meeting in 2002, when we concluded, at the end of the conference, three simple words: ‘Finance is broken.’ It’s not a useful measure of a company, certainly not the human relationships that exist within. But brand has been giving us this heads-up for a long time: if you can’t trust a company, then it follows that its brand equity is reduced. That means its overall value is reduced. And time after time, finance follows what brand already knew. Even those who tolerate dishonesty—and millions do—will find it easy to depart from a product or service along with the rest of the mob. There’s less and less for them to justify staying with it. The reasons get worn down one by one: I’m here because of my kids—till the kids depart; I’m here because of my friends—till the friends depart. If you don’t create transparency, you risk someone knocking back the wall.
   We always knew Facebook’s user numbers were bogus, considering how many bots there are on the system. It would be more when people wanted to buy advertising, and it would be less when US government panels charged with investigating Facebook were asking awkward questions. I would love to know how many people are really on there, and the truth probably lies between the two extremes. Facebook probably should revise its claimed numbers down by 50 per cent.
   It’s a very simplified analysis—of course brand equity is made up of far more than trust—and doubters will point to the fact Facebook’s stock had been rising through 2017.
   But, as I said, finance follows brand, and Facebook is fairly under assault from many quarters. It has ignored many problems for over a decade, its culture borne of arrogance, and you can only do this for so long before people wise up. In the Trump era, with the US ever more divided, there were political forces that even Facebook could not ignore. Zuckerberg won’t be poor, and Facebook, Inc. has plenty of assets, so they’re not going away. But Facebook, as we know it, isn’t the darling that it was a decade ago, and what we are seeing, and what I have been talking about for years, are just the tip of the iceberg.

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