The last place you’d expect to find innovation is in the halls of a 100 year old auto manufacturer.

Ford has it’s back up against the wall…and human nature shows us there’s a thin line sewn between desperation and innovation.

The fruits of Ford innovation are beginning to grow.

Witness Ford dropping emphasis on its own brand name and placing emphasis on pop culture icons like Funk Master Flex, and Chip Foose.

To the unfamiliar, Funk Master Flex is perhaps the most recognized hip hop DJ in New York and urban circles across America. A man who’s been associated with customizing cars and trucks. Great cross-over appeal to the malls of Billings as well as the streets of Brooklyn.

Chip Foose is perhaps the best known figure for designing and customizing very very expensive muscle cars…giving them a modern cool. Also a man with his own TV show and current media platform, his cars typically go for $125,000 and higher.

The news:

1) The dowdy Ford Expedition will be customized into a Funk Master Flex edition

2) The Mustang will be customized by Foose into a 500+ horsepower edition

To do this, somebody recognized what’s a rewind to the pre-Mustang days of the early 1960’s (also outlined in the Mustang chapter of my book)…which is the following:

Nobody young today wants to buy a Ford.

Ford has no buzz. No impetus to talk. No impetus to buy.

Somebody at Ford, however, recognized this and followed the path of somewhat risky innovation (definition: producing something like nothing done or experienced or created before). That’s risk.

Not just signing Funk Master Flex and Foose as commercial pitch men (young people see through this…star gets paid to stand in front of camera, then drives Porsche home). They embedded Flex and Foose into the car, into the product, and into the brand. A Flex product, a Foose product…not necessarily a Ford product.

Somebody at Ford took enough risk to reduce the importance of the Ford brand (mass and manufactured) in favor of becoming unique and personalized.

Keep track of my mantra to clients: look more personal, look less corporate.

Bravo for Ford on this.

Imagine, however, if we filmed the process and the meetings, and the healthy discussions which got them there.

My guess is it could have been ugly. It could have been easy.

But timing, unfortunately for most, is everything when it comes to innovation.

Most companies wait for desperation before they can discover innovation.

A Study in Innovation and Human Nature

Human nature in the corporate environment is not too dissimilar from poker.

When you’re up, you play conservative. You don’t want to lose your chips when you’re in the lead.

But as great poker players know (ask my Buzznation Studios partner Jamie Gold who is the $12 million World Series of Poker Champ)…results come from taking calculated risks when you’re up!

Corporate nature (and most human nature) is to avoid risk when you’re up.

Innovation = New.

New (and radically new) = Risk

When things are going OK…risk is avoided.

Unless you’re Andy Grove at Intel, most try to keep their chips with low risk bets when you’re up.

But ask the champion of Poker, Jamie Gold…and that’s not how you win.
That’s how you lose.

In order to win, with consistent stock price growth, risks are best taken when you’re up.

Unfortunately for Ford, half the value of their company had to be lost in order to find innovation. Glad to see it beginning to bud now, though.

Calculated risks when you’re up get you the gold.

P.S. If you’re looking to read Jamie’s White Paper on “Secrets of Calculated Risk and Success: Lessons from Business and the Winningest Poker Player in the World” fill out the contact form at Buzznation with a comment reading “Poker White Paper” here.

I can’t wait to read it myself. Should be ready in a couple weeks.

Mark Hughes is a professional speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff (Penguin/Portfolio).

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Randall Stross’ New York Times story (April 1, 2007) finds the crack in Microsoft’s search strategy.

It is this.

Although giving money away in the form of “Microsoft Credits” to companies using MSN search exclusively is a great idea…and something out-of-the-box for a company of Microsoft’s size–it’s tantamount to almost being pregnant.

It won’t get the job done.

Stross points out why.

Companies don’t tap the keys on computers in search engines…people do.

And what does Bob care if his company gets some free Microsoft training credits?
What’s in it for Bob?

Nothing, as the NYT reporter points out so easily.

#1. Why did it take a Journalist to point out the obvious.

#2. What’s the search solution?

Let’s focus on #2.

The search solution lies in finding a superior algorithm, and a superior impetus.

Superior Algorithm - Can MSN Search Do It?

Here’s a test. Perform a search for my dad,`“Newspaper Consultant”.

Results in MSN’s Live Search and Google for this search are pretty much the same.

From a consumer’s perspective (remember THEY tap the keys) there’s no significant difference in search results.

For a consumer to switch, there needs to be a superior search algorithm…a noticeable difference seen by consumers.

MSN has none right now. To get there, though, it should be looking at some of the ontological semantic search engines likely be up by year’s end (full disclosure, I have an equity position in one of these engines).

Superior Impetus for MSN Search?

You and I are creatures of habit. Routine.

Gas Stations have performed research indicating we are so habitual, not only do we go to the same gas station, we go to the exact same pump at the same gas station. And if someone else is at ‘our’ pump…we get annoyed that ‘they’re at my pump!’

Now to change search habit…years of searching on one search engine–requires superior impetus.

NYT’s Stross urges MSN to pay users just like iWon.

Not a new idea Mr Stross…and no superior impetus.

But we are getting warmer here.

What would it take for a consumer to switch search engines?

Money…maybe. But your time is worth more than the chance of winning $10,000. The math is quite easy (1/30 million x $10K). Your time would be worth one cent after 30 searches. Paying people to search…not a good idea.

What else could cause a switch?

A chance at lunch with Warren Buffet? Yes.

A chance to play poker with the best poker player in the world Jamie Gold (who also happens to be my business partner in Buzznation Studios)? Yes.

A chance to be on the set with Marty Scorsese for a day? Yes

Where is this going?

Impetus and buzz.

Let’s say we created a new form of search distribution for Microsoft.

1. Microsoft licenses Live Search to Warren Buffet.
2. Warren puts up a site called BuffetSearch.com
3. Every Month Warren has a phone call with a randomly selected person who uses BuffetSearch at least 10 times per day…every quarter he has lunch with a randomly selected BuffetSearch user.

Warren gets a revenue share.
Microsoft does all the tech work and hosting.
Microsoft gets the recognition and buzz of “powered by Live Search.”
Warren signs the contract, cashes checks, goes to lunch.

Same formula for other celebrities and champions in their field.

ScorseseSearch.com JamieGoldSearch.com Etcetera. Etcetera.

Now what happens?

MSN Live Search gets buzz, and creates its missing business component: impetus to change.

P.S. to Satya Nadella…don’t forget the superior algorithm.

Mark Hughes is a professional speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff (Penguin/Portfolio).

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Problem #1 - The biggest complaint discovered in EVERY internal employee survey is what? “Not enough communication.”

Problem #2 - The biggest problem for MySapce and Chris DeWolfe is MySpace doesn’t have a really good revenue model.

Hmmm.

MySpace has built one of the most buzzworthy mediums for digital communication (although informal communication).

Studies show again and again the the most important and effective form of communication in a corporation is informal.

So why have we not created a corporate version of MySpace?
Revenue made in the form of a per user license and set-up fee.

Let’s do some quick math:

Yr 1: Let’s say 500 corporations sign up x 3,000 avg employees. $49 per month X 12 months
By my calculations, this adds to $882 million in revenue.

$882 million in revenue…that’s alot of Peanut Butter.

“Hey, you just got Peanut Butter in my chocolate.”

“HEY…you just got chocolate in my Peanut Butter!”

Mmmm.

Chris, Peter, and Rupert…talk amongst yourselves. My work is done here.

Mark Hughes is a marketing speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff (Penguin/Portfolio).

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Jim Cramer watch your back.

Fast Money on CNBC with Dylan Ratigan, created by Susan Krakower, Ratigan, and Dan Hoffman have got a sleeper hit on their hands.

They did it cheap, and they did one thing really well.

Cheap by TV standards. You can hear the audio echo, you can hear a janitor or Production Assistant int he background yelling off in a hallway. A nightmare for producers, but a sense of transparency for viewers.

Why does cheap work? We trust things without glitz, and without slick.

And when it comes to our own money, trust is paramount. Do I trust the five people in front of me to make multi-thousand dollar risks?

A friend of mine in Development for ABC strongly felt that the downfall of a great day-time show (the Wayne Brady Show) was it’s glitzy, slick set and over-produced look. Understand that even though the show won Four Emmy’s–it failed and got cut.

But the one thing that Fast Money’s Hoffman and Krakower are doing really right is their “Face 2 Face” segment.

It follows the principle of Empowered Interactivity put forth in Chapter 6 of my book.

Every night, average Joes and Janes get to ask one of the four experts a question, and perhaps joke and poke with them. From a Buzzmarketing perspective this is BRILLIANT.

What it does is give the viewer (the consumer) what we call buzz currency. It’s not just a phone in…it uses new technology of webcams. We see their face. The viewer becomes famous for their 60 seconds visually on TV.

How many other shows does the viewer get to appear on a show? None!

Call-ins, sure. But with their mug on TV, never until Fast Money.

This gives viewers what most want–fame (with hopefully a tip of fortune).

And to-boot, my guess is it’s being paid for by Sprint and Logitech…the sponsors of the segment.

This show is hot. This show is a little rough around the edges (hence trustworthy). This show has grass-roots viewership and passion.

Kudos to Susan Krakower, Dan Hoffman, Dylan Ratigan (”The Commissioner”), Eric Bolling (known as “The Admiral”), Jeff Macke (”The Lone Wolf”), Tim Strazzini (”The Risk Doctor”) and Guy Adami (”The Negotiator”).

Jim Cramer watch your back and your ratings.

Mark Hughes is a marketing speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff (Penguin/Portfolio).

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Consider this the most contrarian prediction.

Apple’s iPhone will likely bomb.

Yes, I know America loves Apple. Silicon Valley loves Apple. All my Los Angeles friends and many writers love Apple.

But let’s look at the data, the dynamics, and timing.

First, consumer confidence is beginning to falter.

Toyota Tundra (yes another great company and brand) can’t sell their new Tundra truck right now, and is having to dig into the incentive bucket for help.

Timing for the Tundra and other large non-need purchases (hint iPhone) is not good.

Consumers are beginning to pull back as interest rates and Bernanke get more volatile, and mortgage defaults come at an all-time high.

Timing. Not good.

Now let’s look at the data. Several years back, I was frothy for Apple’s newest phone, the ROKR, only to be disappointed. Not a good phone, not a good music device according to the reviews. And certainly not good sales results.

Yes the ROKR was primarily a Motorola device, and who’s to know who’s to blame–Apple or Motorola. But the bottom line is that Apple has a sour record for developing phones.

The hype happened…and I doubt that Apple can recreate the buzz and the news upon launch.

My Pulitzer prize-winning father with 50 years in the Journalism business taught me many things about the news industry, but one that’s pretty critical is this. News is new only once. Once it’s old, it’s not new…thus not newsworthy.

Now Apple will definitely find itself on the front pages upon launch of the iPhone, but half the buzz is gone.

And for $499 and $599, the price-point for a device doing the same thing as a RIM Blackberry Pearl or Blackberry 8800? I’m swimming against the tide, but I’m predicting lower than expected sales for the iPhone.

Fashion you say? Fashion will sell the phone.

Fashion is very “in the moment” and the moment will be about six months long gone upon release.

Superior technology and design you say? First time out for a device like this on Apple’s part–and remember the ROKR. Sales will be below expectations.

Perhaps I’ll be proven wrong.

Perhaps Richard Gardner at Citigroup and Andrew Neff at Bear Sterns will say “Told you so…you were wrong.”

But data, dynamics (of buzz and consumer culture), and timing, show me a bucket of expensive Apple iPhones sitting in the orchard…with fewer people biting than expected.

Mark Hughes is a marketing speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff.

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Seattle became the opening city for my book tour a couple years ago.

When I spoke to one of Microsoft’s small but numerous ad agencies, I sensed a mood amongst the Microsoft people in attendance…slight melancholy.

One mantra I put forth is the concept of being less corporate and being more personal.

Microsoft has a reputation of being ultra-corporate, male-centric, and arrogant.

In 2005, not much stood in the way of eroding that perception.

But today I read and article about Channel 9 in Wired and the tide may be shifting.

Channel 9 is a Microsoft-owned video blog site interviewing Msoft employees, and letting it all hang out. Good, bad, sometimes ugly.

Not so surprising say you? Oh no…in the world of corporate PR, nobody gets to speak to the media (in this case BE the media) without having a leash on you and multiple approvals to very high levels.

Very surprising.

On Channel 9, what’s going on is exactly what I tell many clients and many audiences: be more personal and be less corporate. Why, because Americans don’t rust corporations anymore.

We can thank Tyco, Enron, MCI, Adelphia, Vioxx, etc for lying to America, the FDA, and the SEC.

Today, we trust people more than we trust corporations. Today we trust Bob, the consultant from IBM who works in your office, far more than we trust IBM itself.

Today we trust people, not corporations.

Now here is the quiz for you:

If you understand this…you as a marketer, PR person, and leader does what?

Answer: you do exactly what Channel 9 is doing for Microsoft…humanizing the brand. Showing that it can be rough around the edges. Showing it has faults just like we all do. Because when we claim a company is perfect–consumers know better.

Be less corporate, be more personal. Showcase your people (real people) without slick video editing–and you will begin to gain the trust of your consumer base.

What else indicates that Msoft might be going through some effective therapy?

Reed Hastings just joined the Board of Directors. Young, fresh, rogue, not full of himself. One who understands how to grow organically. One who understands that word-of-mouth and word on the street about your company can have real impact.

There’s still a long way to go. Keep going Microsoft…but it’s good to see you making the first steps.

Mark Hughes is a marketing speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff.

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Nothing digitally recorded is private…digital is the new public.

The question is…did Brad Garlinghouse at Yahoo! and Howard Shultz have an inkling (or perhaps full confidence) that a hot memo will get forwarded into the blogosphere and then the mainstream news media?

More like strategic manifestos from Brad & Howard…and quite good ones at that.

Is it such that the only way we can apply pressure for change in corporate America is with the media?

Activist fund manager Carl Icahn certainly thinks so and uses the media to his advantage…Motorola now has an executive shake-up which would likely never have happened without him and the media.

Bob Chapman at Chapman Capital ditto. Bold, righteous, and correct in his analyses.

As Howard Shultz and Brad Garlinghouse blaze new trails of internal activism, are we seeing the birth of a new form of Employee Activism?

Perhaps a good thing.

Mark Hughes is a professional speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff (Penguin/Portfolio).

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I have a new favorite saying.

80% is the new consensus.

When speaking publicly, on the topic of ‘Demand Creativity’ in my book, I often divert into how companies tend to accept the lowest common denominator when trying to achieve 100% consensus.

One Standard Deviation covers 68% of the population.
Two Standard Deviations covers 95% of the population.

The midpoint is 81%.

Innovation, by its very nature, is not ensconced in consensus.
If it was, innovations would be rampant at every company in every quarter.

The definition of innovative is: 1. ahead of the times, 2. producing something like nothing done or experienced or created before.

If you think you’re going to get even 95% consensus on something that has never been created or experienced before think again.

If you can get to 80% consensus, put it over the goal line. It’s the new 100%.

Mark Hughes is a communication speaker, consultant, and author of the book Buzzmarketing: Get People to Talk About Your Stuff (Penguin/Portfolio)

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Recent article in the NYTimes about Maclom Gladwell.

Here’s an intriguing camparison:

Click here:

http://www.buzzmarketing.com/gladwellspeaker.php

I was surprised by this. Tony Morgan from South Bend, Indiana had read my book Buzzmarketing, and low and behold Tony markets his church just like we market our products and services.

It never ocurred to me before, but the principles are the same. On his website, wiredchurches.com he talks about maximizing the media, and I think he might be on to something big.

I’m a business speaker, inspiring and teaching. He delivers a sermon, inspring and teaching. Both Tony and I are on a mission to spread the word about spreading the word (in my case Buzzmarketing, in his case religion…a more noble objective), and the principles of buzzmarketing apply.

Exciting things I’m reading about are GodPods…podcasts of sermons. We’re on the go, little time, and finding the right voice to inspire you takes investment. The “GodCast” might be one of the pieces of technology that I discuss in the book that has transformed word-of-mouth into an F-16 with afterburners (OK so you have to read the Buzzmarketing book to get the full story).

GodCast, GodPod…buzzmarketing pops up in unimagined places, and thanks to Tony Morgan at wiredchurches.com for lighting the spark.