Fourty odd years after the summer of love, hippiedom is in for a different trip. Management science, of all, now looks to Grateful Dead for inspiration.
That’s what Joshua Green talks about in his article in The Atlantic. It seems Grateful Dead’s strategies and practices are influencing, of all people, managers and business students. He writes, “Without intending to-while intending, in fact, to do just the opposite-the band pioneered ideas and practices that were subsequently embraced by corporate America.”
Deadheads, the famous peripatetic (no, not pathetic) fans, followed, literally, the touring band. Though loose in the sense that they came from different parts of the country, there was a deep bond among them. Tribes , in fact. Grateful Dead knew what it meant to care and connect with their vital fans. “The Dead were masters of creating and delivering superior customer value,” Barry Barnes, a business professor from Florida posits. And that was before American companies had to learn that from Japanese.
Grateful Dead also let Deadheads record songs freely in concerts. Band’s lyricist, John Perry Barlow explains to the author “..if I give my song away to 20 people, and they give it to 20 people, pretty soon everybody knows me, and my value as a creator is dramatically enhanced...”. None can argue with that now. “Strategic improvisation” is the word coined by Prof. Barry Barnes. May not be the pioneer, but sure an harbinger of open source philosophy.
Prof. Barnes then theorizes, “Giving something away and earning money on the periphery is the same idea proffered by Wired editor Chris Anderson in his recent best-selling book, Free: The Future of a Radical Price.”
Chris Anderson, in his Wired article on Free (there’s a book too), starts with Gillette as revolutionizing business models with offering throwaway models. It’s possible since it comes at throwaway price. However ‘throwaway’ disposable razors are, they are not free. And the difference between “free” and “not-free”, however little it might be, is a major difference.
Giving it all away might not always be that altruistic. Joel Spolsky, in his blog once wrote, “I noticed something interesting about open source software, which is this: most of the companies spending big money to develop open source software are doing it because it’s a good business strategy for them, not because they suddenly stopped believing in capitalism and fell in love with freedom-as-in-speech.” (There, I believe, are open source softwares with its origins in idealism which later got monetized by bigger companies. Then again, do ‘money’ and ‘altruism’ need to conflict?)
Coming to innovative pricing, perhaps Rainbows takes the cake. Todd Sattersten, in his “A Pricing Utopia” says “..You can’t please all of the people all of the time, when it comes to price, no matter what you charge, you are going to leave money on the table. Some customers will pass because the cost is too high, while others would have paid more…..”.
In October 1, 2007, Radiohead released their album on their own website as both digital download and $80 premium discbox that included two CDs, two vinyl records, photos and lyric book. In Rainbows has become more well-known for the sales method than the music itself. So Radiohead vaporized their middleman (recording company) who were eating into the profits and watering down art. Thom Yorke told TIME , “...but the time is at hand when you have to ask why anyone needs one...”. (Where is the manager of the self-managed team?)
Towards the end of the article, Joshua Green writes “That was the value proposition with the Dead.” The Dead thrived for decades, in good times and bad. In a recession, Barnes says, strategic improvisation is more important than ever. “If you’re going to survive this economic downturn, you better be able to turn on a dime,” he says. “The Dead were exemplars.” It can be only a matter of time until Management Secrets of the Grateful Dead or some similar title is flying off the shelves of airport bookstores everywhere.
Now, at least, there is a blog.