Posts Tagged ‘co-creators’

I dream of Malden

Saturday, December 8th, 2012

Lately, Malden, Massachusetts has entered my consciousness. I’m not sure why. Maybe it’s because a few of my Yelp friends from Boston have told me this is the “in” place for Ethiopian, Sri Lankan or Moroccan food. Maybe it’s because Business Week has made noise about Malden being a great place for kids to grow because of its diversity. Maybe it’s because a member of my family has some political responsibilities there? Or perhaps I’m just tired or organizing business communities in India, Latin America and Europe and want to come home in the evening?

I don’t yet know how to fit all the pieces in the co-creation puzzle, but I’m eager to figure it out. My typical gig involves finding a central business player eager to orchestrate the development of a mini-economy around itself: a large business, a bank, sometimes a public entity (although a profit-seeking business with a community bent provides the best anchor). Maybe Eastern Bank or one of the local savings banks could play that role? Banks – community banks in particular – can become great community co-creators since they make money by attracting local savings and lending that money back to mortgage customers and businesses. By connecting all the parties with each other around local growth and utilizing the physical branch as a local meeting place, one can drain a lot more savings and generate a lot more loans, often at below market rates, simply because people are passionate about making their community a better place. I have done that in Saint-Etienne, France and Guadalajara, Mexico, for example. Why not Malden? Eastern Bank, you look like a supersized community bank with a great community bent. I’ll bet we could significantly increase the income of your savings and your lending business in your Malden branch if we could make you the center of Malden’s renewal.

On the business front, Malden does not have a lot of manufacturing businesses, but has great ethnic food restaurants that could grow and become anchor points for local employment. Could Malden become the food capital of New England? Could it engender the development of an ethnic food supply chain with ethnic grocery stores and perhaps some local manufacturing or distribution centers from the mother countries? I dream of Malden as a mini-Ethiopia, mini-Sri Lanka, and mini-Morocco, a diversity showcase attracting hard-core Bostonians to eat and shop there. (Malden has the advantage of having the Orange line connecting it directly to the heart of Boston).

Maybe we could get the young foodies from downtown Boston who already come to Malden for food to help us orchestrate the growth of these communities? Many of them are idealistic Generation X and Millennials generating good incomes from financial services, healthcare or service firms.  Maybe we can have a “Food for Thought” program (one of them suggested that name to me), where these idealistic foodies become business activists who help Habesha scale its outstanding Ethiopian restaurant business, or supports Moroccan Hospitality Restaurant in attracting more passionate people to its tagines?

Beyond the business imperative lies a social one: Malden needs help because the poverty rate there is quite high at 12%.  It’s a  neighborhood not far from where some of Ben Affleck’s and Clint Eastwood’s tough movies take place (the Town, Gone, Baby, Gone, Mystic River). Maybe we could get local boys Ben Affleck or Matt Damon to sponsor our Malden business community program?

I dream of this program as a business proposition, however, not a bleeding heart volunteer activity. There is business to be made at the bottom of the pyramid, and it happens to have positive social outcomes. I want the core business that anchors this program to double its profits, the owners of the Malden restaurants to become affluent and the employees who work there to derive good incomes from the new jobs created. I want the politicians associated with this program to become stars and sell the program as a model for other Massachusetts, New England or US towns. Personally, I want my wife and kids to discover what I do for a living and get to sleep in my bed at night.

Malden is the modern version of the American melting pot. It is a microcosm of our future economy, with its huge problems and the opportunity created by its diversity. The future of America does not lie in setting up the right tax rates in Washington, DC. It lies in weaving vibrant business communities at the local level. With politicians, bankers, restaurants, downtown foodies and citizens, let’s go co-create Malden.


The bounty system of the New Orleans Saints as a perfect model of co-creation

Monday, March 5th, 2012

It has been widely reported in the last few days that some players on the New Orleans Saints football team developed a home-grown bounty system whereby players would reward each other with personal money for inflicting injuries onto opposing players. While the National Football League is investigating the New Orleans Saints specifically, there are indications that such a system might be in existence across the league, along a continuum from the clearly legal (players rewarding a punt return) to the apparently illegal variety (the NFL seems to have rules that prohibit intentionally putting a quarterback on a stretcher).

The New Orleans Saints have developed a perfect system of co-creation we should write up in Harvard Business Review, not decry in the New York Times. The system developed by the players has all five ingredients of co-creation:

  • A community. The players who decided they were going to build a kitty to reward injury-causing hits on opposing players set themselves up as a community. Had the NFL not intervened in ill-advised fashion, the player community might have expanded into allowing investment from fans into the bounty scheme. A “Knock Tom Brady cold” Super PAC could not have been far behind, supported by Libyan or Syrian capital.
  • An engagement platform. The platform was an organized spreadsheet where players kept tabs on bets and rewards. The spreadsheet was further institutionalized when an assistant coach started keeping score on behalf of the players. The next expansion would have included an idea generation web site open to the public (, with an injury pricing site and rotisserie league to follow.
  • Continuously expanding interactions. The platform was originally developed as an incentive system to reward legal plays (e.g., causing a fumble), but started sprouting injury-causing moves over time. The community and platform in place could have been further expanded into player gambling on football games, sponsoring dog fights, or financing armed robbery by young deserving football players.
  • New win-win experiences for all parties. We’re told the bounties helped young players round off their modest paycheck, allowing them “to buy shoes” with the proceeds. I understand Zappos and Nike were eager to become involved in the Saints co-creative ecosystem. Elder players enjoyed the developmental experience of providing nurturing advice to their younger colleagues, supported by the team’s Human Resources function. The assistant coach was clearly on the short list for Coaching Innovation of the Year. And the New Orleans Saints fans got a winning football team after years of futility, allowing the entire city to regain its pride after Katrina (well, sort of).
  • New value for the club owner. The bounty system produced a highly motivated work force that fully dedicated itself to the task at hand, ultimately winning the Super Bowl.  Absenteeism was at an all-time low. Career progression was rapid. The bounty system had no cost to the owner since everything was financed by the players.  The system did have a tremendous revenue impact in terms of gate attendance and media revenue. What else could one wish for as an owner?

The bounty system was such a perfect example of co-creation and produced an ever-expanding win for all parties (except for a few injured parties along the way, but doesn’t there have to be some Schumpeterian creative destruction?). The Saints bounty system could have become the new Facebook, the new Google or the new Groupon. Will regulators ever learn?