Brand New View

Winter YOG 2012

It has now been 1 week since the Winter Youth Olympic Games in Innsbruck ended. A quick web search will reveal many wonderful performances from young athlete's around the world, including women's half-pipe gold medalist Hikaru Ohe of Japan. Yet how many of you were even aware the Winter YOG took place at all? As I discuss in my new book, The Olympic Games Effect, the YOG is designed to bring the youth of the world together to participate in sport, education and culture while living by Olympic values. This is an admirable ambition, but not enough people know about it. Granted, the YOG is a new mega-sports event, leveraging off the success of the regular Olympics, so there may be confusion about what makes it unique. Also, new sports brands are not built overnight. But a more aggressive marketing plan needs to be developed to build awareness about the YOG overall, and to clearly describe the factors that make it unique as compared to the regular Olympics. The winter sports TV, social media, and print coverage in the U.S. discussed the just concluded Winter X Games. While the Winter X Games were established in 1995 and therefore have had time to grow, the YOG has its work cut out for it in the years ahead if it wants to craft a compelling event worthy of Olympic stature while building a global fan base.

UPDATE: The Olympic Games Effect, 2012 edition now available!

My latest book, The Olympic Games Effect (2012 edition), is now available for downloadable purchase at Amazon.com and Apple's iBook Store. The Barnes and Noble Nook version will be ready shortly.  

Anybody watching the Youth Olympic Games? More information on this in The Olympic Games Effect.

What Does YOG Mean to You?

How many of you are aware that an event called the Youth Olympic Games (YOG) exists? Were you also aware that the YOG are part of the International Olympic Committee's (IOC) efforts to build the Olympic brand? And did you also know that there is a Winter YOG taking place right now, this week, in Innsbruck featuring the world's top teen athletes? Do you know how many YOG events have been held in their history? Where was the first YOG? If you are aware of any of these things, are you also paying attention to the results? How are you getting your information?

I am curious how many of you know about this at all. I discuss the Youth Olympic Games in my new book, The Olympic Games Effect, which is going to be available in stores and online in just a few days. Of course, the YOG are not the only Olympics topic I discuss, but there is interesting information within that brings readers up to speed on the IOC's YOG efforts. Let me know whether you are following the YOG at all...

The Olympics' Role in Fostering National Pride

One of the points I discuss in my forthcoming book, The Olympic Games Effect (2nd edition), is that the Olympics spur national pride, an intangible benefit that reinforces the prestige and allure of the Games. A recent BBCNews article echoes this same point, based on a poll by Globescan of over 20,000 from countries around the world. Interestingly, despite being the host of the forthcoming Olymics in London, 50% of UK respondents said the Olympics were important to their national pride, whereas more than 70% of Peruvians, and over 80% of Chinese, believed the Olympics affected national pride. Poll findings in other countries also indicate that the Olympics positively affect national pride,  suggesting that the Olympics are alive and still very well received around the world, an inspiring result in an era of economic, environmental and political turmoil.

London 2012: Despite Tough Economy, Glimmers of Optimism

The economy continues to struggle in much of the non-Asian world, and the UK's economic austerity program does not appear to be helping. The National Institute for Economic and Social Research (NIESR) said that the UK won't return to 2008 growth levels until at least 2013, a 5 year period of lost opportunity. Unemployment has risen (again) in the UK as well over the past few months. The NIESR states that additional stimulus is needed, or the situation is unlikely to improve. And, of course, the political climate in the UK suggests such a stimulus is unlikely. In the midst of these challenging times, questions about the costs of the forthcoming 2012 Olympics are inevitable. But should the tough economy cause government planners and the London Olympic Committee to scale back plans, or even cancel the Games? According to a BBC blog by Roger Mosey (the BBC's director of London 2012), the answer is no. As he states, the "prospect of a 2012 with the Olympics in London is still a better prospect than one without." As I point out in my forthcoming book The Olympic Games Effect, hosting an Olympic Games is a daunting, complex task with potential benefits that rise above pure economic gain. While not all host cities generate sustained economic benefit (indeed, many of the Economic Impact Studies produced during the host city bidding process often overstate the actual economic gains), there is evidence that suggests a well-coordinated host city strategy comprised of pre, during, and post Olympics phases that actively plans for leveraging the investment for years afterward, can stimulate a sustained and positive outcome. There is also evidence that the Olympics serve to lift the spirits and infuse a collective sense of societal optimism for both the host nation and countries around the world. Does this mean that London 2012 will inspire an economic turnaround in the UK? The Olympics alone cannot accomplish such a Herculean task, despite the Games' reputation for inspiring super human performances. But cutting back London's Olympic investments (effectively creating an 'Olympics lite') would send a far more severe, negative message about the UK, the Olympics and the economy as a whole. Part of what drives market behavior is a sense of confidence, and ensuring the 2012 London Olympics are given every chance to succeed will help build confidence, which is certainly a vital task in stimulating economic activity.

Ambush Marketing

Check out this September 2011 article from Interbrand about Ambush Marketing. I write about ambush marketing, among many sports marketing topics, in my new book The Olympic Games Effect. For Olympic sponsors, especially TOP sponsors (which invest over $80 million for the rights to be an Olympic sponsor, then another 2-3 times that to activate their sponsorship), ambush marketing is a valid, yet hard to manage, concern. For those unfamiliar, ambush marketing occurs when companies try to create an association with the Olympics (or any sports event), even though they are not official sponsors. The effort can undermine the marketing efforts of official sponsors, and serve to confuse consumers as well. We will undoubtedly see an increase in Olympic marketing activity in the months ahead and it will be interesting to discern which are official sponsors versus the ambushers. Stay tuned.

Olympic History...and Inspiration

The Olympics have nearly 3,000 years of stories that have helped shaped this mega-sports event into the global phenomenon it is today. So much of Olympic history is about the athletic excellence of the competitors. One such competitor is Orsippus of Megara who, in 720 BC, was competing in a footrace when his covering came off part way through the race. He went on to win, unwittinginly inspiring subsequent generations of competitors during Ancient times to compete in the nude. While such a spectacle is highly unlikely today, there is little question that Olympic competitors are always looking for an edge, whether psychological, in terms of training methodology, or competitive strategy and, when victory occurs, other competitors and fans try to learn how to adapt the winner's approach to their own needs.  

The Olympic Games Effect, 2012 edition

The 2nd edition of my book, 'The Olympic Games Effect', will be published early in 2012 (John Wiley and Sons). Updated and revised for the London 2012 Olympics, I discuss the pros and cons of Olympic sponsorships. My recent TEDx talk included examples from the book. In the book I review sponsorships in the broader context of Olympic history, as well as host city bids, economic impact, marketing strategy, and the more recent advances in social media. While the book is still a month or two away from release, the support and buzz has already been tremendous, including invaluable endorsements from some truly remarkable people: Glenn Hubbard-Dean, Columbia Business School and former Chairman of the Council of Economic Advisors; Lynn Kahle-the Ehrman Giustina Professor of Marketing and Department Chair at the Lundquist College of Business, University of Oregon (and home of one of the U.S.'s top sports marketing programs, the James H. Warsaw Sports Marketing Center); Dae Ryun Chang-Professor of Marketing, Yonsei University School of Business; Anton Meyer-Professor of Business Administration and CEO of the Institute of Marketing at Ludwig Maximilians University; Richard Burton-the David B. Falk Professor of Sport Management at Syracuse University; and Kimio Kase-Professor of Strategic Management at IESE. I will be teaching a new course in the winter term based on this book, and also giving talks around the world throughout the year. In June, I return to the International Olympic Academy in Olympia, Greece, to teach in their Masters of Olympic Studies program. I will be writing more about the book in the weeks and months ahead as the London 2012 Games get closer and closer. Please contact me at john@brandnewview.com if you want more information about the book and/or speaking opportunities. 

In Olympics-related news, the International Olympic Committee launched a new Integrated Communications program today called 'Show Your Best' that seeks videos entries of people doing their best, whether they are Olympic athletes or not. The idea is to showcase the remarkable range of talent out there in the world. A range of prizes will be given for the best entries, including a trip to see the 2012 London Olympics. Show Your Best is the latest effort by the International Olympic Committee to connect with fans, particularly the youth, extending a dynamic set of new initiatives in recent years that have included the launch of the new Youth Olympic Games (YOG). The first summer YOG was in August 2010 in Singapore, and the first winter YOG will be in Innsbruck January 13-22, 2012 (just a few weeks away!). 

Rejuventation

A bit of a commercial message in this post...

Two quick items to update:

First, the manuscript for the 2nd edition of The Olympic Games Effect, updated and revised for the London 2012 Olympics, is being prepared by my publisher, John Wiley & Sons, for early 2012 publication. You can pre-order it now at Amazon.

Second, as mentioned in an earlier post, Brand New View continues to grow, including an amazing leadership team. We continue to offer outstanding executive education programs, both independently and in collaboration with other institutions (just concluded a program for China Mobile in Guangzhou, China). We are also engaged in investments in higher education, with new projects in Asia and North America. We also have the collected published works of our leadership team on the site as well. We have revised our website to reflect this, so check it out.

A Letter to Congress and the President

To the President and Congress,

I agree with President Obama that a balanced approach is necessary and required immediately. I disagree that the Reid plan he supports is balanced. Nor is the Boehner plan. But more on those later.

I have recently relocated back to the US after living in Singapore for most of the past 7 years, where I was a business school Dean and Professor. During our time overseas, I observed the US from afar, worked with leaders in international governments and businesses, spoke at innumerable international conferences, wrote several business books, extensively followed international press coverage, and watched with great frustration as the reputation of the US sharply declined. There is no question that the current debt situation is and has been an unnecessary crisis, yet here we are on the brink of the unimaginable.

Financial markets evaluate credibility and strength based on a combination of tangible and intangible factors. Tangible factors, of course, are those that we can readily measure, such as the revenues and spending components of the Federal budget. The intangible factors, however, are equally, if not more important. These include our reputation, trust in our goodwill and judgment, and belief that we know what we are doing. Both tangible and intangible factors have been seriously harmed since 2000. The tangible factors can be fixed relatively more quickly, starting with a serious (and now accelerated) effort from both parties to put forth a credible, long-term plan for solving the debt crisis. But the intangible factors, such as our reputation, take decades to develop (one could argue it has taken 230+ years) and, as we are witnessing, a few short years to destroy. Once the intangible reputation is gone, it will take many more decades to even have a chance to regain our once leading reputation as a force for good and a reliable economic and political power on the global stage, if we even return at all.  A short-term, politically expedient tangible approach that temporarily raises the debt ceiling only when tied to spending cuts will only hasten the dramatic decline of the U.S.'s reputation.  Unfortunately, the two current plans are politically expedient and, as a consequence if either is enacted, risk further harm to our international reputation, perhaps irreparably. 

Neither of the solutions currently on the table are likely of the financial magnitude or composition needed to prevent a credit downgrading. Among the problems with the current proposals, it is clear to almost every credible political and business leader around the world, except select members of Congress, that a solution lacking a revenue (re: tax) component is fiscally irresponsible and economically unsound. To be blunt, adhering to a no tax pledge is juvenile, silly, and unquestionably disastrous for the long-term economic health of the US. You need to solve this immediately, but NOT with the two proposals currently on the table. President Obama was correct in seeking more than the $1 trillion in taxes that he sought last week (although even those taxes were not sufficient in size). The Reid plan as currently conceived does not include taxes, which is a significant mistake in its own right. The Boehner plan is even worse, particularly since it forces the issue back into the political arena in 2012 during the election season when politicians favor platitudes and promises of economic gain without sacrifice, and the average American is easily comforted and persuaded by this proven false logic.  

It is beyond the pale that our elected representatives would have essentially allowed this crisis to evolve to this level, but we cannot change what has occurred. However, we can change what we do in the next 2-3 days. Those Congressional Representatives inflexibly committed to their no tax principles are forsaking the long-term viability of the United States for the fleeting benefits of winning a political argument. This is ludicrous, embarrassing to witness, and literally dangerous, both economically and with respect to our reputation. You must set aside partisan differences, raise the debt ceiling, and craft a solution that includes an aggressive and sizable revenue (tax) component, in addition to spending cuts (see Scheme, stonewall and fulminate: America’s politicians posture as a self-inflicted crisis draws ever nearer in the current issue of The Economist). In fact, I even strongly encourage a new fiscal stimulus package. A recent story in July 25 issue of Fortune Magazine concluded that the financial bailout not only staved off an even worse financial crisis, but has made money for taxpayers ("Surprise! The big bad bailout is finally paying" off by Allan Sloan with Doris Burke). The structure and composition of that bailout had many problems which are well known. And while I know proposing another stimulus is political suicide for many, I suggest this is far better than the much larger dangers the US economy and its international reputation faces if such bold policy is not pursued. Do not go down the path of the UK's austerity measures, especially since their early results are clearly discouraging (George Osbourne Will Stick To Austerity Programme Despite Halting Output by Larry Elliott, UK GDP Figures Show Slower Growth of 0.2% in the BBCNews, and The Austerity Delusion, by Paul Krugman). If so, then the US is setting itself up for its own Greek tragedy (Greece Credit Rating Cut by Moody's Amid Default Warning in the BBCNews), with far more disastrous ramifications. Let's move away from politics and toward sound policy, immediately.

 Regards,

 John Davis