Category Archives: Business

We’re Living in the Golden Age of the Corporate Takedown

Miki Agrawal, co-founder and “She-EO” of menstrual underwear phenom Thinx, raised eyebrows when she stepped down from her role in the company in early March. Agrawal had long been infamous for her company’s boundary-pushing ads and her well-publicized hesitance to use the word “feminist.” Within days of Agrawal’s announcement, Racked published a gripping article examining corporate dysfunction and alleged sexism at Thinx, and Agrawal struck back with a lengthy post on Medium that detailed her “incredible ride” with the company. “I didn’t put HR practices in place because I was on the road speaking, doing press, brand partnerships, editing all of the creative and shouting from the rooftops about Thinx,” she wrote. Less than a week later, Agrawal was accused of sexual harassment by a former employee.

Such is the power of the corporate hit piece: Fueled by eyewitness accounts, scorned ex-employees, and juicy tidbits about a CEO’s bad behavior, a corporate identity that took years to build can unravel in days. These piquant stories might smack of a slow-motion trainwreck, but they satisfy more than our inner gossips and gawkers. Today, the myth of a CEO is often of their own making—once minted by years of climbing the corporate ladder, now CEOs are made in weeks or months. CEO, we are told, is less a work status than a state of mind.

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Why Don’t You Just Get One of Those Creative Jobs?

I never acted on my mother’s suggestion that I find a nice creative job, like in advertising, but then the job came to me anyway. An art-director friend called and said she was making a TV commercial for Barneys New York and she needed some words. Would I do it?

I didn’t hesitate for a second. Why not? What is the difference between art and advertising?

Quality? Clearly not. The only difference I could come up with for sure was the logo. I was an adman from that day forward, and somehow it gave me the resources to do what I thought was art—with a logo.

I had always been interested in the neutral zone, the DMZ of art and commerce, and now I was working there. It was a place where I could push the limits, mainly because I was so unfamiliar with the limits. Like Iggy, I didn’t feel like a sellout, I felt empowered. If you’re going to be a bad boy, be bad: like Bob Dylan talking to the computer in the IBM ad. Don’t tell me he wasn’t savoring the transgression of the whole thing.

At The Paris Review, writer and creative director Glenn O’Brien narrates the comic struggle of making a living in the arts, particularly the way many creative types struggle with whether or not to go into advertising. He doesn’t.

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Pivoting Away from Lung Cancer

Felix Gillette, Jennifer Kaplan, and Sam Chambers report in Bloomberg Businessweek on Big Tobacco’s adaptation of the Silicon Valley playbook: sleek design, disruption, open-floor plan “innovation zones” with Eero Saarinen chairs, you name it. Welcome to the world of alternative nicotine platforms.

In between heatsticks, you holster the cyberpipe in a mobile charger, a smooth, palm-size contraption that calls to mind a cigarette pack mated with a smartphone and designed by Apple’s Jony Ive. “I was a smoker before,” Calantzopoulos said as he handled a charger. “I switched to this completely, and I cannot smoke cigarettes anymore.” Somewhere in flavor country the Marlboro Man is turning over in his grave.

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Mixing Business and Family in the LA Lakers Empire

LA lakers jersey, number 24

Janie Buss said she thinks her older brothers are looking to cash out. Together, the six Buss children inherited 66 percent of the Lakers via four trusts established by Dr. Buss and his first wife, JoAnn. According to court documents, the trusts state that four of the six Buss children would have to agree to a sale of their interests in the Lakers. That’s further complicated, because a percentage of the Buss family shares are in JoAnn’s name and cannot be sold until her death.

“The way the trust is set up, it’s last man standing,” Janie says. “If I die tomorrow, my kids benefit a little bit but they don’t get everything I’m entitled to. As we all go down, it’s all going to end up in Joey and Jesse’s hands because they’re the youngest.”

She says she understands why Johnny, age 60 with two young kids, would want to cash out and leave more to his own children. She’s had the same thought. But ultimately, she wants to follow her father’s wishes because, “I am living life better than I ever thought I could live, and it’s all because of my dad’s hard work.”

At ESPNRamona Shelburne tells the complex family drama between the LA Lakers’s president and other stakeholders, which include her siblings. The business dealings off the court are an American story about power, money, and the disciplined stamina necessary to run a successful business.

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The Outdoorsy Type’s Dilemma

At The Guardian, Marisa Meltzer looks at the self-congratulatory corporate philosophies of outerwear giants Patagonia and The North Face. Beyond the often-amusing details (like the time employees at Patagonia’s California headquarters tried to save a butterfly chrysalis they’d spotted on the sidewalk), she unpacks the complex dynamic that allows these companies to tout their ethical sourcing and care for the environment while selling luxury goods to affluent weekend warriors.

Selling professional-grade gear to people with no intention of using it professionally isn’t exactly a new trick in marketing, as the makers of SUVs, digital cameras and headphones can tell you. Most people who buy the Nike trainers advertised by Mo Farah don’t use them to run long distances.

But North Face and Patagonia are both wrestling with a more consequential paradox, one that is central to contemporary consumerism: we want to feel morally good about the things we buy. And both companies have been phenomenally successful because they have crafted an image that is about more than just being ethical and environmentally friendly, but about nature, adventure, exploration — ideas more grandiose than simply selling you a jacket, taking your money and trying not to harm the earth too much along the way. But the paradox is that by presenting themselves this way, they are selling a lot more jackets. In other words, both companies are selling stuff in part by looking like they’re not trying too hard to sell stuff, which helps them sell more stuff — and fills the world with more and more stuff.

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‘Why Pay for Therapy When the Advice of Strangers Has Proven to Be Helpful and Free?’

At The Verge, Ben Popper takes a look at Koko, a startup with an app that helps people connect and provide emotional support to peers and, in the process, allows them to recognize and “rethink” their own problems:

The Koko app starts users off with a short tutorial on “rethinking.” The app explains that rethinking isn’t about solving problems, but offering a more optimistic take. It uses memes and cartoons to illustrate the idea: if you choose the right reframe, a cute puppy offers his paw for a high-five. The app walks new users through posts and potential reframes, indicating which rethinks are good and which aren’t. The tutorial can be completed in as little as five minutes.

Once users finish the tutorial, they can scroll through live posts on the site. Despite the minimal training, the issues they are confronted with can be quite serious: an individual who is afraid to tell her family that she’s taking anti-depressants because they might think she’s crazy; a user stressed from school who believes “no one actually likes the real me, and if they see it, they will hate me”; a user with an abusive boyfriend who has come to feel “I am a failure and worth being yelled at.” I walked a friend through the tutorial recently, and they were shocked by how quickly Koko throws you into the deep end of human despair.

Koko lets you write anything you want for a rethink, but also offers simple prompts: “This could turn out better than you think because…,” “A more balanced take on this could be…,” etc. The company screens both the posts and rethinks before they become public, attempting to direct certain users to critical care and weed trolls out of the system. Originally, this was accomplished with human moderators, but increasingly, the company is turning to AI.

Accepting and offering rethinks is meant to help users get away from bad mental habits, cycles of negative thought that can perpetuate their anxiety and depression. Over the next few months, Zelig found herself offering rethinks of other Koko users almost every day. “Having it in your pocket is really good. All of sudden it would hit me what I needed say in the reframe, so I would pull my car over, or stand in the produce aisle.”

In the process of giving advice Zelig felt, almost immediately, a sense of relief and control. She began to recognize her own dark moods as variations on the problems she was helping others with. Zelig says the peculiar power of Koko is that by helping others, users are able to help themselves.

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The Story of Heady Topper, America’s Most Loved Craft Beer

Sam Riches | Longreads and Food & Wine Magazine | March 2017 | 14 minutes (3,489 words)

 

For eight years, until Tropical Storm Irene struck the village of Waterbury, Vermont, the corner of South Main Street and Elm was occupied by The Alchemist Pub and Brewery. It was, by most measures, a common small-town bar. The walls were chocolate brown brick. The barstools were steel and backless and topped with black leather. A pool table sat in the corner. The ceilings were high, and the lighting was soft. A cast of regulars helped fill the pub’s 60 seats. It was charming in its familiarity, quaint and comfortable, but brewing in the basement was a beer capable of inspiring obsession. It was called Heady Topper and since the pub was the only place you could buy it, Waterbury—home to just a few thousand—soon became a mecca for craft beer drinkers.

The pub belonged to Jen and John Kimmich. Jen ran the business side, and John handled the beer. They first met in 1995, when they were both working at the Vermont Pub and Brewery in Burlington. John had made his way there from Pittsburgh. He’d been enthralled by a home brewer and writer named Greg Noonan who was a pioneer in craft brewing, especially in New England, where he helped push through legislation that recognized the concept of brewpubs.

After graduating from Penn State, John packed everything he owned into his Subaru and drove to Vermont in the hopes that Noonan would give him a job. He did, and for a year John waited tables, coming in on the weekends for no pay to learn the trade alongside the head brewer. Then John became the head brewer. Jen was a waitress at the pub. After turning down John’s initial first-date offer, she came back a week later and asked him out. A month later they were engaged.

Two months after the Kimmiches opened The Alchemist in Waterbury, John, driven by an obsession with fresh, floral, hoppy flavors, brewed the first batch of Heady Topper. The immediate response from customers upon tasting it was bewilderment, followed by intrigue. Their eyes scanned the room, meeting all the other eyes scanning the room, all of them in search of an answer to the same question: What is this? “People were shocked, maybe,” John says. “They would taste it and go, ‘Oh, my god.’ They’d never had anything like that before. People really went nuts for it.”

At first, John didn’t brew Heady year-round. He would make it two times a year, then three, then four, tinkering with the recipe each time. He had other beers to make, like Pappy’s Porter or Piston Bitter or Bolton Brown. They were all distinct, unusually compelling beers, but soon word began to spread about Heady: It was a hit. The problem, if there was one, was that it was only available in the pub. Enterprising customers solved it by sneaking pints into the bathroom, where they would pour them into bottles, screw on caps, and then shuffle out of the bar, pockets bulging. The business and the Alchemist name were growing with rapid, radical speed, beyond anything the Kimmiches had anticipated—and then the storm came.

Irene arrived in Vermont on a Sunday afternoon in August 2011. It roared north from the southern end of the state. Waterbury’s usually calm and placid Winooski River, a short distance from the pub, swelled uncontrollably. The local waterways and tributaries overflowed, and the contaminated water rushed through town, absorbing sewage and sodden trash and heating oil, staining everything it touched. Trees and shrubs were unearthed or turned gray and brown, like they’d been doused by a plume of ash. Cars were flipped; bridges buckled and collapsed; houses were left twisted and roofless. In some stretches of the state, more than a foot of water fell.

From their home in Stowe, just 10 miles north of Waterbury, Jen and John and their son, Charlie, watched the storm unfold. When they got the call that Waterbury was being evacuated, John jumped in the car and drove down, powerless but determined to see the destruction with his own eyes.

By the time he arrived at the brewpub, the basement—where he had been brewing for eight years, where he stored the original recipes for more than 70 beers, and where he and Jen had their offices and kept the food—was completely under water. On the first floor, John stepped inside. The water was not yet waist high, but it was well on its way, so he worked his way to the bar and poured himself a final pint of Holy Cow IPA. Then, with the water rising at his feet, he raised his glass skyward and toasted goodbye to everything they’d built. Read more…

The Early Principles That Guided the Makers of LEGO

Legos in space

In his 2013 book, Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry, David Robertson outlines the early successes and failures of the Denmark-based LEGO Group — from their early experiments with plastic, to their decision in the late 1990s to finally strike licensing deals with movies and characters, starting with Star Wars.

Robertson describes a pivotal moment in the company’s history, when Godtfred Kirk Christiansen, the son of founder Ole Kirk Christiansen, met up with a toy buyer: Read more…