The Idea:  Scott Galloway, Founder of L2 and Clinical Professor at NYU Stern School, is must watch television.  A one-man wrecking crew, he creates explosive digital content explaining the demise of the industrial advertising complex and the necessary, new rules for brand development.  The firm is adept (yet not flawless) at predicting “winners and losers” in the new age.  He is a student of business disruption.  and he’s not afraid to bash any organization lagging? Are you a student of disruption or are you next?

How to know if you are ripe for disruption.

As Galloway has said, “look at your price increases relative to inflation.  If your price increases are much greater than inflation without an increase in innovation – YOU ARE RIPE!”  Are you still creating as much value for your tribe as you once did?

Shockingly, between a third and a half of all consumers cannot name a favorite brand.  Most brands are simply transactional, failing to create an emotional connection, making them primed to be replaced by more relevant and engaging brands.

So what’s coming?  

Says Galloway, “advertising is becoming a tax only poor people pay.” This is apart of the “opt-out economy,” where consumers pay to avoid advertising.  It has been wildly successful and indicates a shift towards consumers valuing time and fluid product experiences. But it also suggests that the population watching advertising has changed, and so should everyone’s ad strategy.  

Almost 90 percent of the top brands lost share and over 60 percent declined in sales. They lost sales to upstarts, innovators, and emerging brands who have moved in from the fringe.  You see this in the beauty business, and in the unprecedented growth of craft beers.  The winners are spirited, free-thinking, creative entrepreneurs.  

What’s changing the game?  Galloway refers to them as the “Gang of Four.”  

  1. Amazon – “World’s Biggest Store. Led by mission not profit; making it difficult to battle.
  2. Facebook –  holding a mission to “Connect the World.”  
  3. Google – believing they can “Organize all the World’s Information.”
  4. Apple –  delivering over 30 percent operating margin, greater than most luxury brands and the scale of the largest companies in the world.

These four creators are changing the competitive landscape, business structure and talent requirements for most sectors.  What are the lessons they are modeling for all of us?

  1. All four organizations embrace three questions.  They have created a culture that asks “Who’s next?”, “What’s next?” and “Why not?” They are driven by opportunity not necessity, which is why they set the cultural tone for all of us.
  2. They only hire data savvy, critical-thinking agile teammates who love to learn, experiment and design fast prototypes.  Your team and all your partners must be comprised of flexible teammates who embrace a growth mindset.
  3. They constantly re-assess their product solutions, reimagining how their products can penetrate deeper into the lives of their consumers.  

Maybe Sid Vicious was right when he stated, “Undermine their pompous authority, reject their moral standards, make anarchy, and disorder your trademarks. Cause as much chaos and disruption as possible, but don’t let them take you ALIVE.”  

Organizations that thrive are not afraid of transforming everything if necessary.  Hold on to everything with an open hand.