Jerry Michalski, President of REX Sustainable Brands 2015 San Diego

June 1, 2015

Leveraging the Relationship and Sharing Economies:

Innovation Potential and Strategies for Entry

Albert Robida 1

#SB15sd

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Working Together

by David Whyte

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Agenda• Framing • Four Economies

• Linear • Circular • Sharing • Relationship

• Trust

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Value

Idle Value Hidden Value

What We Value

Invisible Value

Aligning Value & Values

Layers of Value

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The Economies• Linear (Consumer) • Circular • Sharing • Relationship

• Collaborative • Peer-to-Peer • Freelance (Gigonomics) • Rental • On-Demand • Access

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The Circular Economy

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The Sharing Economy

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Idle Assets

Stuff

Spaces

Skills

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What Gets Shared

Value

Frequency of Use

Very Sharable

Trump Card = Sentimental Value

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Sharing Economy Structures

• “Two-sided” markets

• Not always monetary

• P2P, B2C, B2B

• Personal and business

• Business: internal and external

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Hidden Assets

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ExerciseName Company Industry Date

REX: Shareable Assets

2015 cc: BYYour notes:

Stuff Spaces Skills

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Effects of the Sharing Economy

• Earn income from idle assets

• Idle assets are kept in motion

• Build relationships

• Build reputation

• Earn income in spare time, on demand

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Benefits of the Sharing Economy

• Economic

• Environmental

• Social

• Convenience, choice & flexibility

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Thorny QuestionsHas the Sharing Economy become the Rental Economy?

What does the Sharing Economy mean for manufacturers? GDP?

Are workers better off or worse off? Who benefits here?

Is the Sharing Economy always winner-take-all?

What should cities do about the Sharing Economy?

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The Relationship Economy

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Oikos

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“Consumer”

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Better words

Customer

Client

Student

PatientAudience

Individual

Fan

Family

Guest

Participant

Member

Household Citizen

User*

Ally

*which some people can’t stand, but I really like

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Says Disney

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Language shiftMission

Profit

Broadcast

SEO

Retargeting

Target Demographics

Launch Campaigns

Market Share

Sustainable Competitive Advantage

Maximize Shareholder

ValueBrand

ControlOwnership

Meaning

Happiness

Authenticity

Purpose

Vulnerability

Intent

Love

Gifting

Trustworthiness

OpennessTransparency

Abundance

Thriving

Emergence

CommonsMembership

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Aligning value and values

Too often…

Value You Create

Values You Hold Value You Create

Values You Hold

What if…

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People Are Also

Inventors

Artists

Critics

ScientistsAmateurs

Mentors

Writers

Recommenders

Sharers

Repair Technicians

Teachers

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“If you have nothing to say, sing it!”

–David Ogilvy

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If we:Stretch the truth

Treat you like cattle

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If we:Stretch the truth

Treat you like cattle

Go to war on you

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If we:Stretch the truth

Treat you like cattle

Go to war on you

Call you “consumers”

Stalk you

Fill your world with noise

Deny mistakes and wrongdoing

Don’t really listen or engage

Why trust us?

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Unsustainable

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Re-humanization

Peers

Relationship

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How to build trusted relationships1. See your customers as peers

2. Be honest

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Stakeholder Trust Audit

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How to build trusted relationships1. See your customers as peers

2. Be honest

3. Be open

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Footprint Chronicles

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Examples

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Be vulnerable

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Brene

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How to build trusted relationships1. See your customers as peers

2. Be honest

3. Be open

4. Understand social dynamics

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How to build trusted relationships1. See your customers as peers

2. Be honest

3. Be open

4. Understand social dynamics

5. Design from Trust

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Design from mistrust

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Gestures of trust

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Two more examples

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Traffic Calming

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Examples

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Open Space

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Layers of (Invisible) Value

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Design from Trust is often:Counterintuitive, risky, uncomfortable

Cheaper than control

More effective

Transformative

Regenerative, social

But:

• It’s social, so there are no guarantees

• It’s nested inside other problems

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Thorny QuestionsStalk or serve?

Are people really trustworthy?

How might we shift our measures of success, personal, corporate and economic?

How do we shift from mistrust to trust?

How do you deal with the bad actors?

How do we manage the Commons together?

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Trust is the new differentiator.

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Trust is the way forward.

Despite the many reasons it’s hard to trust people…

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Thank you.

Jerry Michalski jerry@sociate.com @jerrymichalski

REX: the Relationship Economy eXpedition TheREXpedition.com

Thank you, #SB15sd!

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The idea landscapeNeighbors:

Compassionate Capitalism Conscious Capitalism Theory U/Presencing

Open Source The Sharing Economy

Servant Leadership

Not Neighbors: Attention Economy Experience Economy

Authenticity

Mixed: Creating Shared Value

Wikinomics Big Data

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The Commons

• The Commons — Natural Resources — The Commons

• Coming back into relationship with the Earth

• Natural fit with sustainability, green, circular, sharing, etc.

• Governance models of The Commons (Elinor Ostrom)

• The New Commons: information, knowledge, learning