It’s Pride Month again, and our world is aglow with vibrant colors. Pink, green, yellow—the entire rainbow is on display here. All these colors stand for diversity, inclusion, and the recognition of different ways of life. And the rainbow doesn’t stop at brand logos—they, too, often get a colorful makeover. Diversity, though it may be a dry term, can actually be a lot of fun!

However, these rainbow-colored brand logos are (at least I hope) not just a superficial facade, but also have real substance. Substance would mean that diversity is truly put into practice within the brand and in the workplace. Otherwise, you quickly find yourself in the realm of “pinkwashing”—similar to “greenwashing,” this refers to a situation where the outward, colorful facade does not match the actual reality of the brand in question.

«Diversity in action rocks!»

And this work on the fundamentals is definitely worth it. For example, we know from a wide variety of studies that diverse teams have a positive impact on work outcomes by bringing a wide range of perspectives to the table. Diversity in action rocks!

Does diversity in the workplace offer even more benefits? Does it, for example, play a role in people’s purchasing decisions? A team of researchers conducted a study on this topic: Participants were shown two chocolates from different manufacturers. No brand names were given, but participants were shown images of the four-person leadership team alongside each chocolate. The leadership team at Chocolate Manufacturer One was diverse, while that at Chocolate Manufacturer Two was homogeneous.

In addition, it was reported that both manufacturers claim to act ethically and condemn child labor. However, it was also noted that these claims cannot be verified. The participants were then asked how ethical they considered each manufacturer to be and which product they would prefer. The result of this study, as with the five other studies conducted by the research team, was clear: The diverse team was viewed as more ethical; in other words, it was more likely to be trusted to act in accordance with its ethical claims. And this was then also reflected in the product preference for the chocolate produced by the manufacturer’s leadership team!

This insight is another piece of the puzzle on our path toward a more diverse, vibrant workplace: Diversity is not just an abstract concept or a social ideal, but plays a real role in people’s perceptions and purchasing decisions.

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* Prof. Dr. Johanna Gollnhofer She is an associate professor of marketing and one of the co-directors of the Institute for Marketing and Customer Insight at the University of St. Gallen (IMC-HSG). For m&k, she writes a monthly column about exciting, sensational, or curious marketing studies from around the world. This month’s article is based on this study.

Who still remembers the «LOHAS»? This demographic—whose name stands for «Lifestyle of Health and Sustainability»—was the «hottest thing» marketing had to offer in the 2000s: LOHAS value sustainability and conscious consumption; they are inquisitive and critical. At the time, about five percent of Germans belonged to the LOHAS group, which had previously been simply called «ecos.» This demographic still exists. But it’s no longer just affluent, older consumers—as they were defined in the 2000s—who value the environment and health; rather, a large portion of society, across all age groups, now does. People are changing; new values are gaining importance, while others are fading away. New trends and cultural phenomena are constantly emerging.

«Any brand that wants to remain relevant must speak the language of its target audience.»

Any brand that wants to remain relevant must know and understand its audience and speak the language of its target groups. But how can this be achieved? How do advertisers manage to stay on top of the latest trends and leverage genuine insights that others don’t have? One key factor is the support provided by agencies: Using a variety of approaches, they take a close look and uncover trends and phenomena that can give their clients a real competitive advantage.

«Edges» as a Tool

At TBWA, such trends are called «Edges.» They highlight emerging changes in culture, markets, and consumer behavior—and are intended to serve as a guide for brands to identify topics that will allow them to connect with their target audiences in a more relevant way. This is how TBWA Zurich describes it in its latest Zeitgeist Report, a comprehensive analysis of cultural shifts worldwide and in Switzerland. More than 300 TBWA «Culture Spotters»—agency employees around the globe—go through life with their eyes wide open, documenting their observations and insights. From these, specific «Edges» are defined—ranging from «Activist Awakening» to “Zero Out”—which serve as a foundation for the agency globally and are explored in greater depth in Switzerland through a survey. The survey not only asks how people feel about specific topics and trends and how their behavior changes as a result, but also how this affects their consumer behavior.

«With the data from the survey, we can quantify culture,» says Lukas Diem, Head of Strategy at TBWAZurich and the person responsible for the Zeitgeist Report. Trends, the advertising executive explains, are not short-lived social media trends, movie hypes, or fleeting buzz, but rather long-term, profound cultural shifts. In nearly every briefing, the agency tries to leverage these «edges» to its advantage, according to Diem. Sometimes they form the basis for a brand’s positioning; other times, trend research supports the insights used in campaign planning. «We use this as a tool,» says Diem, «to make our clients» brand presence more relevant.” He is convinced that this approach can be a real competitive advantage over others. After all, cultural trends change not only values but also consumer behavior and willingness to pay.

Let's go to «Sheesh»!

A successful case study from the agency illustrates what this means in practice: The task was to position Swiss Federal Railways (SBB) in a way that resonated more with Gen Z. It would have been obvious to focus on sustainability, explains Diem. «That’s all well and good. But we looked at which issues stood out most among Swiss Gen Z. And those were mental health topics. Young people are focused on ‚coping‘ in this stressful world.» Psychological studies also showed that active leisure activities and social experiences are effective ways to reduce stress and alleviate pressure. The approach for SBB: The train serves as a gateway to a network of destinations that represent shared experiences—and these are good for young people’s mental health. SBB became the gateway to a world of possibilities for Gen Z that no other mode of transportation can offer them. For the campaign, therefore, young people’s worlds of adventure were marked with the SBB’s signature blue station signs, which, however, did not list local destinations but rather the emotions that the journey there is meant to evoke—whether «Sheesh,» «Slay,» or «Wyld.».

More and more new specialized agencies and units are also focusing on trends and cultural phenomena. For example, Jung von Matt Nerd in Germany has been offering insights into topics such as gaming, nerd culture, fantasy, and fandom since 2020 («These aren’t niches—this is a superculture,» founder Toan Nguyen said at the time in an interview with Brand Eins), David + Martin aims to «blur the lines between advertising, art, and pop culture» with its offshoot Presence, as the agency announced, while others focus on hip-hop, sports, pop or subcultures, and communities.

Not a buzzword

Serviceplan is taking a strategic and holistic approach to this issue: With its newly founded agency, Serviceplan Culture—led by hip-hop journalist Niko Backspin, former TikTok manager Franziska Gregor, and communications expert Sven Labenz—the goal is not only to better reach cultures and subcultures but also to gain a deep understanding of them. «The question is: Do brands just listen, or do they truly and sustainably change their language and marketing behavior when addressing their target audiences? Isn’t it much more important to step into cultures and subcultures to be present where trends emerge? Cultural marketing isn’t just a marketing buzzword; it must become an integral part of brands» advertising mix—not least because it influences commercial success,« explains Franziska Gregor, Managing Director at Serviceplan Culture. According to the expert, the key is that it’s not about »cultural campaigning” or focusing on just one culture or subculture: “Relevance arises when a brand and a culture enter into long-term partnerships. And that includes identifying the right subculture for a brand and tapping into it. We call this ‘tap into culture.’”

«We use this as a tool to make our clients» online presence more relevant."

The agency has developed its own product portfolio to make subcultural fields and activities measurable for brands—and to determine their value within them: a CVP, or «Cultural Value Proposition.» «Cultural marketing must be measurable—otherwise, it remains just a buzzword, mere marketing jargon without a real budget. Data and insights play a major role here, as does the voice of the culture itself. For us, both are central.»

With its own international and steadily growing Cultural Council drawn from a wide variety of fields, the agency tailors its consulting services to each client’s specific needs—with a diverse group that shares perspectives, community knowledge, and insights. The advantage: «Even though we in the leadership team are completely different both culturally and in terms of our skill sets, what unites us is that all three of us are white and privileged. The fact that three white communications professionals—two of whom are male—are telling brands what culture is and how they can use it is, in itself, a mistake. Trends don’t emerge from mass media, and culture isn’t created at the desks of advertising agencies.» Or, in short: «Never talk about culture without culture.»

Charles and Ozzy — yawn!

And thanks to social media, culture has become much more visible today than it used to be. Everyone can see what’s trending there, join a community, express their preferences, and share them with others. And that’s where trends emerge. Unlike in the past, brands have to respond to them—and as quickly as possible. «»Marketing professionals can no longer ignore the topics of culture and cultural marketing,” agrees Lukas Diem. Instead of traditional target audience thinking and pure segmentation, what matters more and more is what is truly important to people—what moves them—rather than which social circle, age group, or income bracket they belong to.

«People are more individual than ever. We're talking about »communities of culture.'"

The age-old favorite example of all marketing professionals—that Ozzy Osbourne and Prince (now King) Charles are like twins in terms of their sociodemographics but otherwise as different as night and day—has always suggested that: People are much more individual than their gender or date of birth—today more than ever. «Consumers» real-life situations have long been diverse and can no longer be explained by simple demographic data. So they’re reaching their limits,« says Franziska Gregor as well. For the head of cultural marketing, this means one thing is crystal clear: »Traditional target audience marketing, as we’ve known it so far, has had its day. We’re talking about ‘communities of culture.’”

Audrey Arnold has served as executive director of the Leading Swiss Agencies (LSA) association since early January. The position was advertised publicly after Catherine Purgly moved on to new opportunities following eight years with the organization. The executive team is now complete again—and, with five women, once again consists entirely of women.

It took some time to get up to speed, says Audrey Arnold. That’s because association work offers a whole new perspective on communication. Although Audrey had already gained professional experience on both the client and agency sides, working as the executive director of an association is something entirely different. In the past, she’s counted several associations among her clients, so she’s no stranger to association work.

When asked what exactly the LSA association does for its 100 members, she begins to wax enthusiastic. Building bridges between clients and agencies, sharing knowledge, fostering the next generation, keeping the LSA charter in mind, defending it when necessary, and expanding upon it. Take sustainability, for example. Her predecessor had already launched projects in this area, which Audrey and her team will now build upon and use to support member agencies in their transformation.

Overall, Audrey Arnold identifies three key areas to prioritize this year, among many other topics. The first of these is sustainability. The association has partnered with «ClimatePartner.» Members can have the carbon footprint of their campaigns calculated. Companies are increasingly demanding this in order to meet their own sustainability standards.

«Now the office is back to full strength—and, with five women, it's once again an all-female staff.»

The LSA places a high priority on supporting young talent. With the Ad School and the Junior Agency Award, the LSA has developed two powerful tools for nurturing young talent—this ensures that young creatives, strategists, and consultants stay in touch with the latest trends and benefit from instructors and jury members from the LSA who are themselves at the forefront of the industry. Collaboration with various universities also serves to foster young talent early on and is a win-win situation.

The LSA’s advocacy efforts on the topic of «fair pitches» remain a perennial focus. This year, the association’s office, together with its member agencies, has already achieved some successes. The competition for advertised accounts requires clear rules that allow all participants to present their best work. «As an association, we take our members seriously. Among other things, the LSA stands for quality and fairness, which is also important to me,» she summarizes. But just as important as driving various topics forward, Audrey Arnold believes, is that her team has fun. The five women get along well, motivate one another, and keep the association on track.

So, after nearly five months, Audrey Arnold has already settled right into her daily work routine. She is satisfied, full of energy, and 100 percent on board. She is in close contact with the president and the board, feels warmly welcomed, and is receiving excellent support. By the time this magazine is published, Beat Krebs will have stepped down as president after three years in office. As of press time, it is not yet known who will succeed him.

Searching for Clues

Audrey Arnold is from Biel, in the canton of Bern. Contrary to expectations that she would be bilingual, she did not grow up speaking two languages. Her mother is German (from Hamburg) and her father is Swiss. She spent her school years and her apprenticeship in Biel. Audrey completed her commercial apprenticeship at the guardianship authority. There, she developed an interest in social issues, which resonated deeply with her—given her strong sense of justice. Her father is a politician; political debate is a regular part of life in the Arnold household, and the family is committed to social causes. At the time, she ruled out a career in politics and decided to start working at the Biel Public Transportation Authority after her apprenticeship. The authority was initially affiliated with the city administration but later became independent, requiring it to establish its own marketing department. That’s when Audrey caught the bug and threw herself into the work; a small in-house marketing department was established, laying the foundation for her career on the agency side. Eventually, she felt the urge to work in a more creative capacity. She moved to the agency Contexta, which at the time was still Swisscom’s lead agency. Audrey invested two years of her time and passion there, but then left Contexta. Her path led her to Zurich at the end of 2010.

At first, she doesn't find the city very appealing; the local mindset is foreign to her. She has a hard time settling in. It isn't until Audrey starts a new job at Mövenpick Wine that she begins to understand—and even love—the city through her work and by getting to know her wonderful coworkers.

«The days of being slick are over; being authentic and showing your true self are more important than a Teflon image.»

Audrey is a true bon vivant through and through. Above all, that means good wine and good food. She thought she knew a thing or two about wine, but at Mövenpick, a whole new world opened up to her. She’s thrilled. Her role as a project manager soon feels too limiting; she throws herself into her work and is promoted to head of Marketing Services. Eight exciting years later, she does something she would never have done before. She quits her job without having a new one lined up. Why? «I was just shy of 40, and I’d say I was going through a mild midlife crisis,» Audrey says with a laugh. The feeling that something had to happen—that things couldn’t go on like this—was stronger than the cautionary words from her parents’ upbringing: never leave an employer without having signed on for something else. She doesn’t regret it. After taking time off for further training, she returned to the agency side. First in Zurich, then to the communications agency Stämpfli in Bern. She commuted. That’s over now.

Audrey in Private

Audrey Arnold enjoys spending time alone. She needs it to recharge. Because even though her look may seem extravagant (that’s subjective, but it’s how I see it), Audrey doesn’t like being the center of attention. She’s better at listening, observing, and capturing the mood. This suits her very well, not only in her personal life; as the executive director of the LSA, it’s her job to provide members with the best possible support—to do that, she must understand their concerns, assess them, and then coordinate with her team. Listening is the crucial aspect of this process. Audrey questions everything and isn’t satisfied until she has understood everything down to the smallest detail. This is exhausting—even for those involved—but it’s also essential for achieving the best possible outcome. She enjoys being there for others, and that makes Audrey an empathetic person to be around. But she doesn’t have a «helper syndrome.» She laughs. “If I did, I might have stayed at the guardianship authority.”

She loves to debate—she got that from her father, who, as a local politician, established a culture of debate in the Arnold family early on. Especially when cooking with friends or even alone with her partner in the kitchen, she can lose herself in arguments and conversations… in which she likes to take on the role of listener, but brings up her own points at just the right moment. She loves rough edges, even in the people she talks to. In her opinion, the days of being slick and smooth are over; being authentic and showing your true self is more important than a Teflon-like image. Once everyone is seated at the table, they toast with a good glass of red wine.

Arrived

Her role at LSA now rounds out the Biel native’s portfolio. While the position of managing director is new territory for her, all the experience she has gained over the past 20 years comes together to pave the way for Audrey Arnold, allowing her to navigate it with ease. She instinctively senses what matters to the members; she uses her reserved manner and diplomatic skills to elegantly bridge the gap between agencies and companies. Together with her team, she is ready to take on any challenge and looks to the future with optimism.

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Exhibitions by Audrey Arnold

1. Apprenticeship: Audrey Arnold is completing her commercial apprenticeship at the Biel Guardianship Authority.
2. Biel Public Transportation Authority: A small in-house marketing department is being set up by a team of two.
3. Contexta: Audrey moves to the creative side at the Contexta agency, which at the time was still Swisscom's lead agency.
4. Mövenpick Wine: Audrey Arnold has been with Mövenpick Wine for eight years—and has long served as Head of Marketing Services.
5. Stämpfli: Before joining the LSA, Audrey Arnold worked at the communications agency Stämpfli in Bern.
6. LSA: Audrey Arnold has been the managing director of the Leading Swiss Agencies association since January 2024.

The response rate and the results show that—as in most relationships—there is still work to be done. The goal is shared success in the market, and that requires transparency and trust.

«The response rate and the results show that—as in most relationships—there is still work to be done.»

A partnership-based relationship between advertising clients and agencies is the key to a long-term collaboration. For example, Appenzeller Käse and the Bern-based agency Contexta have been working together for 55 years! To analyze the transparency and working methods of digital and media agencies, the Swiss Association of Advertising Clients (SWA) commissioned a transparency study last year—the third of its kind. The ZHAW University of Applied Sciences was commissioned to lead the project, thereby ensuring anonymity, independence, and scientific rigor. Unfortunately, the response rate this time was modest, at only 26%. In the two previous surveys, conducted in 2019 and 2021, the response rate was still around 50%. This lower willingness to provide information alone shows that there is still a need for action when it comes to transparency. Nevertheless, 25 agencies ultimately completed the comprehensive questionnaire and provided their views on specific topics (see box). Here is an overview of the results of the transparency study:

Digital advertising based on CPC, CPM, and CPV dominates

Among the numerous ways to purchase digital advertising, CPC, CPM, and CPV are dominant, each accounting for over 90%. Agencies also purchase on a CPL basis (70%), vCPM (54%), CPE (54%), CPA (46%), eCPM (41%), and eCPV (41%). Just under one-third of agencies report that they have completed the «Digital Ad Trust Ambassador Program,» which was launched a year ago by IAB Switzerland, Leading Swiss Agencies, and SWA. Agencies and clients who complete the Ambassador Program must, following a short video training session, demonstrate through a quiz that they possess up-to-date knowledge of viewability, brand safety, ad fraud, and user experience.

Markups remain in a gray area

28% of the agencies surveyed stated that they offer media inventory to their clients. However, only seven of the agencies surveyed disclosed an average markup of 9.5%. This means that these agencies purchase media inventory from publishers and resell it at that margin. This is an important issue that advertisers should discuss with their agencies—especially since an average markup of 15% is also applied when purchasing non-inventory media!

Brand safety measures have become standard practice

The measures most commonly used by agencies today to ensure legal safety for their clients are exclusion lists (80%), inclusion lists (75%), private deals (75%), contextual targeting (65%), guaranteed deals (45%), content categories (35%), pre- and post-bid blocking (30%), and brand safety tools (25%). The appropriate measures for ensuring brand suitability are practically the same as those for legal safety, just in a slightly different order.

Agencies are not funded solely by client fees

The agencies participating in the study reported that two-thirds of their revenue from planning and booking digital campaigns comes from client fees. Additional revenue comes from markups on ad servers (15%), payments from publishers/marketers (10%), and tech fees (7%).

Hourly rates are the most popular form of compensation

The most popular forms of compensation for media and digital agencies are, in this order: hourly rates, media commissions, and project fees. The median hourly rate is 179 Swiss francs.

Most agencies are satisfied and break even

For 72% of the agencies, the fees for planning and booking digital campaigns cover their costs, and 76% consider their own fee structures to be fair. For agencies that did not fully cover their costs in some cases, the reason was that not all services or hours could be billed. Overall, however, 88% of the agencies are satisfied with the agency-client collaboration from their perspective.

It is precisely this high level of satisfaction among the participating agencies that gives the SWA—as an interest group representing advertisers—a positive outlook for the future. Now, when these studies are conducted again, we simply need to get many more agencies to participate! Transparency cannot be taken for granted; all stakeholders must continually stand up for it.

Interested advertisers can obtain the 2023 Transparency Study from the SWA at [email protected].

Contents of the SWA Transparency Study 2023:

• Agency Structure
• Technologies Used
• Media Buying
• Media Visibility
• Dealing with Ad Fraud
• Brand Safety Measures
• Handling Data Protection
• Agency Fees
• Controlling/Audit Options
• Approach to Sustainability (Green Media)
• Client-Agency Collaboration

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This article is a contribution from SWA, an m&k partner association.

Fear is running rampant. When people and animals are afraid of something, they either run away or take cover, paralyzed with fear. But where can people go these days? The whole world is in turmoil: Europe has been at war for three years now, with no end in sight. Threatening posturing on both sides is becoming increasingly alarming. Is a world war imminent? Would the U.S., as a protective power, still stand by our side? Mass immigration from distant countries is straining our social systems and overwhelming us, not least because of the cultural differences. Looming over it all is the vague fear that the current global warming we’re witnessing is the «road to hell» leading to the apocalypse, as UN Secretary-General Guterres has predicted. So where can we go to escape this threat? Where can we go if the world is going to end anyway?

Withdrawal into Private Life

The escape clearly leads inward. And here it becomes clear: The supposedly new zeitgeist is actually… romantic! For it was the great Romantic Novalis who wrote: «The mysterious path leads inward.» The outside world, according to the poet, is the «world of shadows.» And truly, hardly anyone can deny that this world has grown dark. As the pandemic raged, one’s own home became, more than ever, the center of one’s private universe. Tradespeople were never more in demand than during the COVID-19 crisis. Whether it was a wine cellar, a new kitchen, or a new bathroom, everyone could indulge their hedonism within their own four walls—a new kind of inward emigration. The main thing was to get away from the big wide world. The main thing was to feel—at least emotionally—safe. This remains true today, as the aftereffects of the pandemic are clearly felt. In fact, the pandemic was a turning point: the retreat into the private sphere—and with it, the longing for peace and security, for a way to block out the threatening reality—found its initial impetus here.

• «Maturity helps us overcome our fears about the future, and that's important. Because too much fear gets in the way of clear thinking.»

While traditional television provided new case numbers every day, people at home on the couch switched over to Netflix to distract themselves and immerse themselves in images of an ideal world. And then there’s new media. Today, retreat is also possible in entirely different—namely virtual—spaces. Whether it’s Instagram, YouTube, or TikTok, hours can be spent on social media—without the risk of infection, without the fear of being hit by a bomb, without the worry of being struck by a natural disaster. This retreat not only has romantic overtones, as described above, but also recalls the Biedermeier era, which followed the Romantic era. Back then, too, the focus was on nurturing and cherishing the private idyll. The adjective «homespun» is experiencing a spectacular revival. One thing is certain: Unlike the 1920s—the «Roaring Twenties»—the 2020s are highly regressive. This trend is characterized by a new sense of comfort—a comfort driven by the desire to avoid fear. And this fear, let’s be clear, is well-founded.

Too Much Fear

Fear is a ubiquitous basic emotion. It warns us of danger and is therefore essential for survival. If we had no fear, we would not survive. But why are we now experiencing an excess of fear that threatens to paralyze us? Do we constantly perceive a persistent danger that triggers constant fear? This certainly doesn’t apply to everyone, but it does affect many people in German-speaking countries, all of whom—albeit in different ways in the past—have developed a heightened predisposition to fear responses. The press has focused its attention on «German Angst.» Hardly a day goes by without the diagnosis of «excessive fear» appearing in headlines in connection with political events in Germany. «The Germans are scary» or, in reference to the government, «fear of the people» are a few examples of this.

The result of this fear-filled mood is a lack of drive and paralysis in all areas. This affects not only the economy but also the motivation of young people. Working your way up through achievement is no longer worth it, so why bother? The NZZ headline, «Germany Is a Country at a Standstill,» reflects this fear-driven mindset and aptly describes the pervasive tendency to shy away from challenges and the stagnation in society and the economy. The fact that the “traffic light” coalition government shut down the last nuclear power plants during the worst energy crisis and also introduced a controversial heating law has not helped the situation. When a safe home—a basic need, a warm haven, and thus the last refuge for individuals longing for security—is threatened, it causes even greater fear.

This mixture of geopolitically driven fear and homegrown domestic anxiety forms the foundation of the fear of the future, which is bringing social development and economic growth to a standstill. The contraction of the German economy demonstrates that this danger is not merely an abstract feeling, and it is also affecting Austria and Switzerland. The mood is pessimistic and resigned to fate. Aside from a few activists who chain themselves to the streets, despondency and a lack of drive are spreading. People are exhausted; they need the four-day workweek, are working from home, and prefer to retreat into a social media culture to wait anxiously to see if everything will really take a turn for the worse in the future. But can this avoidance strategy ever be a good idea when it comes to fears? Certainly not. But what, then, is the best remedy for fear of the future? The most important thing—for each individual, but also for society as a whole—is to abandon the fear-induced defensive posture, take action, free oneself from paralysis, and courageously use one’s reason to form an independent judgment and then act sensibly, that is, taking all known certainties into account.

Science as Medicine

How can this be achieved? Science, I am certain, is the best remedy for fear of the future. This is true even though, especially during the pandemic, we have seen how science can be used as a vehicle to enforce political agendas—and how scientists willingly lend their support in the process. Whether it’s a pandemic or climate change, the phrase «Science says…» has become a universal formula of certainty that seems to leave no room for escape. What is overlooked, of course, is that science is always in flux; it must always be open to revision and certainly has no claim to eternal validity. Anyone who today doubts that completely eliminating human-generated carbon dioxide alone would solve climate change should not be defamed as a quirky climate denier. Perhaps science will prove them right later on?!

From Aristotle to Copernicus

Ever since Aristotle, it had been believed that the Earth was the center of the universe and that all celestial bodies revolved around it. It took more than one and a half millennia before Copernicus determined that the opposite was true: the Earth and all other celestial bodies revolve around the Sun. The Inquisition placed Copernicus’s works on the Index, and the Florentine mathematician Galileo Galilei had to fear for his life because he emphatically affirmed Copernicus’s view of the world within the Catholic Church.

The history of science is full of such examples, and the findings of modern science must remain open to correction. This was the case in the 16th century—a time dominated by church doctrine—with regard to the Copernican view of the world; and this will also be the case in the research into the causes of climate change, although citizens must be careful that the current scientific claim to truth is not used to legitimize political decisions, as it was in the days of the Inquisition. The danger is real: we are currently witnessing this with climate change. Ruling politicians are attempting to diminish the political influence of citizens who are fearful, unsettled, and trusting of science; in other words, they are using climate change to bring about a shift in power that benefits them.

We need courageous free spirits once again. We must hope that a breath of the Enlightenment will once again blend into the current neo-Romantic Biedermeier-style conservatism. «Have the courage to use your own understanding,» Immanuel Kant once said. This maturity helps us overcome our fear of the future, and that is important. Because too much fear hinders clear thinking.

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* Prof. Dr. Dr. Dr. h.c. mult. Florian Holsboer is one of the world’s most renowned neuroscientists. He is known for his discoveries regarding the connection between stress, depression, anxiety, and sleep disorders, as well as for the laboratory-based characterization of these conditions and their optimal treatment. He is considered one of the pioneers of personalized depression therapy. As the author and co-author of over 1,000 scientific publications, he ranks among the world’s most cited neuroscientists. For many years, Holsboer headed the Max Planck Institute of Psychiatry in Munich, which he significantly shaped and expanded. He is also a successful entrepreneur, heads a foundation dedicated to breaking the taboo surrounding mental health issues, and hosts his own podcast called «Alles nur im Kopf» (It’s All in Your Head).

 

* The spelling of certain terms in guest posts (including those related to gender guidelines) may differ from the editorial team's standard spelling.

Rooted in Germany for over ten years and now also in Bern, Appmotion acts as a strong partner for companies seeking digital transformation by creating user-centric applications from strategic product vision to technical implementation. With over a decade of experience, the team knows why now is the crucial time to invest in digitalization: the generational split between digital natives and digital nomads is now creating a conflict in which companies will only prevail if they stand out digitally in the market in the future. In order to keep up in the long term, the whole thing needs to be approached strategically with interdisciplinary teams.

Why we need to hurry

The digital transformation is now facing us with a new urgency: Generation Z (born between 1997 and 2012) is demanding digitalization in all sectors. Not only are they part of the first generation of digital natives, they have now joined the ranks of the working population. In the coming years, they will become the population group with the highest purchasing power and will therefore help determine which needs the market will have to meet in the future. As the first generation to grow up and be socialized with digital technologies, they have clear expectations of digital applications: They must be seamless and user-centered. While their parents' generation currently sits on company boards and in strategy departments, they are the ones influencing the direction of the market. Appmotion Managing Director Lasse Gruner-Lüders is convinced that "Generation Z is now the driving force behind the digital transformation. Only high-quality digital applications will actually be used, which will increase conversion rates, brand loyalty and, in the long term, sales. Companies that don't get on board now will lose out in the long term."

Strong partnerships, smart strategies

The solution is obvious: investments in digitalization. But what does that mean? This step requires more than just developers who design an appealing website or app. It requires a strategic approach to ensure that the requirements of the company and its customers are authentically reflected. A digital application is always also a product of the company, and a sustainable product vision is required for digitalization to be implemented successfully.

"Only high-quality digital applications will be used."

This requires change on two sides: Companies need to realize that one-off implementations don't work, as digital products need to be constantly evolving to remain relevant. This is why a long-term partnership with digital studios makes sense. Agencies also need to change. They need to think more in terms of product solutions than campaigns. After all, in order to succeed digitally in the long term, long-term strategies need to be planned and implemented iteratively in order to be able to react flexibly and quickly to the market. This does not work if partnerships between agencies and companies are short-term and project-based. The knowledge required for innovation is lost in the process.

Digital units instead of silo thinking

"Through our projects, we have recognized that sustainable digital product visions work best with interdisciplinary teams and have therefore introduced the digital unit model. Digital units are real powerhouses because they act as powerhouses of innovation to ensure long-term economic success," says Lasse Gruner-Lüders.

The Digital Units pool digital expertise in interdisciplinary teams to develop agile, customer-centric solutions beyond traditional company boundaries. Always with a view to creating sustainable digital products that solve real problems and really add value. And thanks to this close collaboration, they can react quickly to changes and open up new business models and opportunities for customers.

"Digital units disprove the assumption that digital products are implemented exclusively by developers."

Digital units disprove the assumption that digital products are implemented exclusively by developers and do not play a major role in the overall process. Since customers often fail to recognize this fallacy, it is common for them to work with different service providers and sub-service providers. Strategy, design and development then come from different hands, which often have hardly any points of contact and operate in their silos. This leads to a lengthy and inflexible process, similar to the outdated waterfall model. This is not in keeping with the times, because with a properly thought-out product vision, all trades interlock seamlessly and work iteratively hand in hand. The digital units make it possible to create products that are not only technologically advanced, but also offer an optimal customer experience. And that should always be the goal of a digital product.

Experience, experience, experience!

Not news, but still a relevant appeal that companies need to understand: The user is always at the center. So customer centricity is here to stay. Companies must be able to recognize the needs and wishes of their customers and proactively integrate them into product development. This is the only way to set new standards in the digital landscape. "At a time when products and services are becoming increasingly homogenized, the ability to stand out through a unique user experience is crucial. Companies that ignore this risk losing their relevance," says Lasse Gruner-Lüders.

This is achieved with user experience (UX) design, because design-oriented products are not a luxury, but a necessity. UX design ensures that users have the best possible experience with digital applications, as they are developed to be user-centered, intuitively navigable and visually appealing, while promising high performance with seamless interactions.

Characteristics that are particularly relevant with regard to Generation Z: Many companies still have a blind spot here. There are various reasons for this: The generation is not yet classified as relevant, the connection between the needs of the target group and those of the company is not yet known or there is a lack of identification with it. Yet they already play a key role in the Swiss economy. Around 16% of the population belong to Generation Z and by 2022 around 13% of the working population will belong to Generation Z. This proportion is expected to rise in the coming years. As a growing consumer group, it is strategically relevant to integrate them into the business strategy, especially as they use digital applications the most in their everyday lives.

This is why direct interaction with the target group is necessary in the early stages of developing the product vision and in UX design. This requires the systematic use of data and direct user feedback. This ensures customer loyalty by constantly adapting to changing user needs. This ensures that users return to the application again and again.

Getting even closer to users through synergies

Really good, user-centered digital products are developed through cross-silo collaboration between marketing, business and product development. This is why collaboration with digital communication agencies is essential, as they are close to the target group, know their needs, observe trend developments and establish connections between the brand and the target group.

"Generation Z already plays an important role for the economy in Switzerland."

This interaction is made possible by Myty Group, which Appmotion has been a part of since 2022. The group's international network comprises 13 companies with a total of over 800 experts in areas such as Web3, eCommerce, marketing, creation and more. Over 200 of these employees are based in the Swiss cities of Zurich, Basel, Bern and Aadorf alone.

In Switzerland, Appmotions projects are enriched, among other things, by the collaboration with Sir Mary AG, which offers valuable insights into current developments and new trends by analyzing data and target groups and using AI. "Just as good campaigns are based on strong target group insights, good digital products also focus on users and their needs. Interdisciplinary collaboration is absolutely key here. Optimal interaction between communication and product can prove decisive in competition," says Tino Elsener, Strategy Director and Partner at Sir Mary.

This interdisciplinary approach is not only practiced between the two teams, but also extends to Myty Digital Solutions. It is made up of Myty Group companies that specialize in the seamless and sustainable implementation of digital transformation. As this model is running successfully and thus ensuring strategic growth through digitalization, Appmotion has also positioned itself as a technological partner in Switzerland since 2024.

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With a strong focus on smart customer experiences and high design standards, Appmotion supports modern companies in developing and optimizing long-term customer relationships through unique digital customer experiences. The remote-first company sees itself as a holistic strategic consultant, implementer and integrator in digital transformation processes. The award-winning and certified company has been part of the German-Swiss Myty Group since 2022.

This guest article by Appmotion first appeared in the m&k print edition 5/2024.

Agency heads are currently talking about money with striking frequency. No wonder—staff are in short supply and becoming increasingly expensive, and the economy isn’t exactly booming, which is prompting companies to take a doubly critical look at their marketing budgets. Agencies« revenue models are coming under pressure, and established compensation structures are consequently being called into question. One term comes up strikingly often in these discussions, and in my view, it’s actually highly relevant when it comes to potential revenue opportunities for agencies—the word »attitude.”.

«Agencies can certainly afford to project a confident image.»

But what exactly does «attitude» mean in a positive sense? According to Duden, it refers to an «inner [fundamental] attitude that shapes a person’s thoughts and actions.» Since agencies are business-oriented service providers, «attitude» here must, to a certain extent, be interpreted as a “service-oriented mindset.” However, it’s possible to take this too far, and I fear that this is precisely what some agencies are accused of. When a service provider becomes a submissive “do-it-all,” its business model is built on shaky ground.

This far and no further

Yet agencies can certainly afford to project a confident image. Their services operate at the interface between companies and their customers—that is, where the success or failure of brands is decided. Investing in brand communication—and thus in the work of agencies—therefore plays a major role in determining a company’s success. Yet agencies often lose sight of their own business goals due to an (excessive) service-oriented mindset. But a strong stance is demonstrated only by those who negotiate terms not only on equal footing with the client’s department but also—in the dreaded next round—with the procurement team. From the agency’s perspective, this stance translates to «this far and no further.» Requests for price reductions are understandable, but they don’t always have to be granted in full. Professional negotiation skills are helpful here, as is the realization that if the subject matter department has already said “yes” to the agency, the purchasing department’s negotiating position may not be as strong as it claims.

Submissive Jack-of-All-Trades

However, your approach must also demonstrate who is committed to succeeding in the ongoing collaboration with the client—that is, who wants to make money. This means, for example, delivering only what was actually promised. It sounds obvious, but it often isn’t. I bet every agency executive knows of examples where this rule was broken because the client asked for a few small favors. A little competitive analysis here, a bit of organizational consulting there—these are gladly accepted, even though they weren’t part of the original engagement and, of course, go unpaid. Management consulting firms call this a «follow-up engagement» and have established a very successful business model by using the strategy of starting with small projects at the client’s site to generate larger follow-up projects based on the issues identified in that way. Agencies, on the other hand, often give away follow-up projects—and with them, a lot of money. That is certainly not the right approach.

Strong negotiating position

Having the right mindset also means being aware of one’s own strengths and limitations. Agencies provide an important and complex service for which there is high demand on the corporate side. Given the variety of analog and, above all, digital communication channels, advertising companies are increasingly «lost.» They are more dependent than ever on qualified partners on the agency side. Furthermore, there isn’t an infinite number of agencies capable of offering brand communication at the highest level for medium-sized and large brand companies. So their negotiating position isn’t all that bad.

Ultimately, integrity means being aware of one’s responsibility to the industry. Agencies that go along with every price-cutting game help ruin the industry’s pricing structure. Short-term success comes at a high cost.

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This article is a contribution from GWA, the German m&k partner association.

Duncan Wardle, former Head of Innovation & Creativity at Walt Disney, is right when he says: «Creativity is more than the ability to paint a picture or play a song. It’s the ability to find innovative solutions to your problems.» This quote appears on the first pages of our study «Welcome to the C-Suite, Creativity!», for which Duncan wrote an exclusive foreword. We at Creative Hive are currently finalizing the document—but we’d like to give you a sneak peek at the topic right now.

How, what, why?

Creativity is probably the most powerful tool we humans have for solving challenges. It is what connects us and enables us to think in new ways. Creativity is the breeding ground that allows both people and organizations to grow. For our community and us, that’s reason enough to take a closer look at the topic and explore it in detail. We spoke with board members, CEOs, entrepreneurs, founders, and, of course, creative professionals and researchers. In addition, we surveyed more than 1,000 true doers and thought leaders from the DACH region. The picture that emerges is clear.

«In the near future, many publicly traded companies will have a chief creativity officer on their board.»

Creativity is the most valuable asset in organizations. After all, it is inherent in us. It sparks true «miracles» and enables individuals and teams to overcome virtually any challenge. Furthermore, it has the collective power to accelerate organizations and generate new ideas.

Our study clearly shows how crucial the ability to break rules in a value-adding way and to foster interdisciplinary collaboration is to a company’s success. In this context, the integration of individual abilities with the skills of teams makes all the difference. It serves as the breeding ground and must be cultivated through an organization’s framework conditions. The study reveals a broad range of key factors. The findings are recommendations for implementation. And for those who are still not entirely sure, you can assess your own organization using the «KPI» (Creativity Performance Indicator). To get you thinking, you’ll find a few ideas in the info box on the right—a sort of preview of the study before it’s published, so to speak.

A Key Component for the Future

It is not only the World Economic Forum that defines creativity as a key competency for the future. Our study also concludes that creative skills will become increasingly important for organizational development. And they must be represented and exemplified—but above all, enabled—even at the highest levels of leadership.

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Creativity and Business: Six Theses

1. Your people are your greatest creative asset

Individuals should be encouraged and challenged to think innovatively, experiment, develop ideas, and take risks.

2. Ideas should be encouraged, «enabled,» and brought to light.

Companies should develop ongoing initiatives—supported to the fullest extent possible—to optimize and reinvent themselves. Developing an open culture of communication is essential to this.

3. Chaos is great. But creativity also needs structure.

Furthermore, it seems necessary to establish an environment and design processes and structures that enable efficient and rapid decision-making. A high degree of flexibility and agility in decision-making could accelerate the implementation of new concepts and models. Chaos is great. But creativity also needs structure.

4. «Freedom to the people»

In the decision-making process, personal responsibility and freedom to make decisions should be key factors. The appropriate level of autonomy and accountability should be learned early on, both as individuals and as an organization.

5. Knowledge is power. The collective knowledge of many people is even more powerful.

Ongoing opportunities for inspiration, educational programs, and the establishment of a consistent culture of learning and knowledge foster creativity within the organization.

6. Creativity Needs a Compass

Establishing a sense of purpose for the organization and communicating its goals helps foster creativity. Clear communication of a vision is also essential. This can help individuals understand that their work and ideas have a positive impact. Their personal contribution can boost their motivation to participate in shaping the organization and, in turn, enhance their creativity.

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In the coming weeks, the new Creative Hive Study: «Welcome to the C-Suite, Creativity!» Published. Contributors include the organization human unlimited, Publicis Groupe DACH, the agency MetaDesign, Innofact AG, and the Kienbaum@ISM Institute. The study examines the specific role creativity plays in organizations—and offers tips for innovation in this area. Further information will be available after the study is published—of course—in our magazine, among other places.

This article is a contribution from Creative Hive, the m&k partner platform.

The trip from Berlin to Rome takes about as long as the trip from Berlin to Kyiv—a European metropolis that has been under constant Russian attack for more than two years. This geographical comparison also serves as a metaphor: What happens in Ukraine will determine how—and whether—Europe will be able to overcome the existential risks of the 21st century. At the moment, things don’t look good. We must do more.

With the end of the Cold War, lasting peace has not taken hold on the continent; there has been no shift away from border conflicts toward peaceful coexistence and prosperity through cooperation. That would be a noble ideal, no question, but let’s be honest—the assumption that armed conflicts would never again occur in Europe (as if we had a monopoly on freedom and prosperity) has always been absurd. A confrontation between the major powers is the new, old status quo. And our failure so far to ensure Ukraine’s security threatens the prosperity, freedom, and lives of 40 million Ukrainians just as much as it threatens the lives of 500 million Europeans in the country’s immediate and broader neighborhood.

It is simply incomprehensible that the prosperous Europe of the 21st century (I include the United Kingdom in this, because while Brexit has changed quite a bit, it hasn’t changed the map) with a combined economic output of nearly 18 trillion U.S. dollars is cowering before Russia like a rabbit before a snake—before a country whose gross domestic product amounts to a mere 2.2 trillion U.S. dollars. This cowering and evasion began as early as 2014, when the Kremlin observed our more-than-restrained reaction to the occupation and unlawful annexation of Crimea—thus paving the way for the aggression we have been witnessing since 2022. Because we have failed in the realm of strategic deterrence, some 500,000 people have died, 10 million Ukrainians have fled, and around 100 billion euros per year must be spent to support the Ukrainian military and the country’s economy. Anyone looking for evidence that credible deterrence is better than war will likely find it more evident here than anywhere else.

An Oil Field with Nuclear Weapons

Today’s Russia—Vladimir Putin’s Russia—is a country of rage, a country of military mobilization, practically a nuclear-armed oil field operating under a war economy, where dreams of restoring a lost empire are becoming reality and the supposed arrogance of the «godless, liberal West» is to be combated. Although NATO is attempting to make Russia aware of the costs of its actions (and their more than limited «benefits»), the success of this «deterrence by denial» strategy remains limited.

«You may not care about the war. But the war cares about you.»

Russia’s intentions in Ukraine have not changed in the slightest. The Kremlin wants to overthrow the government in Kyiv and install compliant puppets who will represent Moscow’s interests. The Ukrainian army is to be neutralized, and the country must never become a member of NATO. The four eastern oblasts—including Kharkiv—are to be fully annexed, Russia’s claim to Crimea enshrined indefinitely, and the coastal city of Odessa made part of an occupied strip of land that would leave the rest of Ukraine mutilated and withered (even if that remaining part were to be immediately admitted into the European Union).

Are we really that decadent?

Some people in Europe—and some heads of state—still refuse to acknowledge what Russia’s attack on Ukraine means for them, as if the war were an unpleasant but nevertheless localized affair that has caused gas and food prices to rise for a while (but that, they think, is somehow manageable). Has the era of European decadence already reached such an advanced stage that our enormous potential for progress and development has been transformed into hypocritical, self-centered decline—with the risk of disintegration?

We certainly hope not, because if Russia achieves its goals in Ukraine, Vladimir Putin will not stop there. Then Moldova or Georgia will be «brought back into the empire»—or, if the Kremlin is willing to risk more, NATO members in the Baltic states or the Balkans (though: How great could the risk really be for Moscow if the U.S. elections in late 2024 deal a fatal blow to confidence in NATO’s mutual defense commitment?).

If Russia dictates the outcome of events in Ukraine—and at the moment it looks as though that could happen—then the autocrat Putin will once again see his conviction confirmed that Europeans are too cowardly and weak to stand up to him. And even if he cannot claim a complete victory for himself, he will never waver in his conviction that every interim success by Ukraine is ultimately the result of Western support—and that the protracted war in that country is a consequence of NATO aid. Russia believes it is already in the midst of a major war… against all of us. Everything we fail to help contain in Ukraine will spread to other countries. Or, as the communist thinker Leon Trotsky once said: «You may not be interested in the war. But the war is interested in you.» War is like cancer, a wasting disease that always strikes without warning and is best tackled by acting early and decisively.

The U.S. won't pay forever

I had just made a comment about the possible consequences of the 2024 U.S. elections. Even if, from a European perspective, things were to turn out relatively well once again, it would be foolish to assume that the U.S. will continue to shoulder nearly 70 percent of the NATO budget on its own forever. Perhaps a President Trump would accelerate the process, but the course is set either way: The United States of America is turning its attention to China, has a national debt equal to its gross domestic product, and must allocate financial resources to border security. To permanently subsidize a Europe that is so prosperous… our transatlantic partners cannot afford to do that, nor do they want to.

How high the bill for Europe will ultimately be depends to a large extent on what happens in Ukraine in the coming months. If we do manage to defeat Russia on the battlefield and severely hinder the strategic ambitions of Vladimir Putin and his followers, the risk of immediate aggression against other countries on the continent will decrease. If Russia prevails in Ukraine—and the U.S. withdraws—then uncertain times lie ahead. And it will become very expensive very quickly.

Time is running out

Because please don’t kid yourselves: we’re running out of time. What we’re discussing here are not abstract musings by military planners, but pragmatic analyses of events that are already unfolding. Russia—as has already been mentioned—is doing what we don’t yet seem willing to do. It is spending six percent of its gross domestic product on the military. Even if this means forgoing investments in the education and health sectors: Russia’s social future is being subordinated to a victory in Ukraine. Before the end of this year, the national defense industry will produce 2 million artillery shells and 1,500 tanks; at the same time, Soviet-era stockpiles are being reactivated to buy that same defense industry more time. Russia has five times as much artillery ammunition as Ukraine; by fall, that ratio could be ten to one. Free-fall bombs—known in military jargon as «dumb bombs» because they are essentially unguided—are being retrofitted and are striking Ukrainian trenches with ever-greater precision. Moscow’s troops fire about 3,500 of these projectiles per month, each weighing one and a half metric tons. How is one supposed to withstand such brute force? It’s impossible.

«If we don't act today (...), we will pay a high price for our hesitation.»

And then there’s the «manpower,» bolstered by recruitment driven by monetary incentives in Russia’s poorer regions (because it is these recruits who fight, bleed, and die, it is all the easier for city dwellers to support the war—after all, they hardly notice it). Russia began its attack on Ukraine with a force of 315,000 troops; an estimated 319,000 have been killed since February 2022. Nevertheless, the country is not running out of human resources, money, equipment, or the support of the general population. Russia is playing for victory.

The Struggle for Survival

Meanwhile, Ukraine is fighting for its very survival. Around 80,000 people have been recruited from civil society and industry to join the armed forces, but the population is aging; the average Ukrainian soldier is 43. It is an army of fathers and—increasingly—grandfathers that stands against Russia, a courageous but weary army that is currently still capable of partial defense but hardly of further offensives. Families in Ukraine are mourning 70,000 fallen soldiers and caring for 60,000 wounded and amputees. Far fewer than in Russia, but—what good does that do? Every month that the war continues, thousands die. Ukraine is still willing to accept this terribly high price for its resistance. And in doing so, it reminds us of what would also be possible in other countries on the European continent. It reminds us that their men—and women—are fighting for us, too. And dying.

We must therefore finally be honest: Do we want Ukraine to have a chance? If so, the country needs money, strategic advice, training, weapons, ammunition, vehicles, and much, much more from the U.S. and Europe—right now (!). In concrete terms, «help for as long as necessary» means $40 billion per year for the Ukrainian military alone. It’s pointless to recruit people and then send them to the front lines without equipment; that would be irresponsible. A few weeks ago, the U.S. Congress finally (!) approved $60 billion in «fresh» funds to be sent to Ukraine—funds that had long been blocked at the behest of a Republican minority and its guiding force, Donald Trump. As a result, more than a million artillery shells could not be delivered when they were needed. The European Union had intended to procure a similar quantity of ammunition by the end of March but was only able to secure about half of it. Of course, additional EU aid has been approved and is urgently needed, but if it doesn’t arrive in time either, Ukraine will fall further behind with each passing day. Dramatic appeals from Kyiv are falling on deaf ears.

Just enough for a stalemate

Perhaps Europe alone could provide enough support to bring about a kind of «stalemate» in Ukraine. But that must not be the goal. The goal must be to reduce Russia’s lead in military capabilities and, ideally, to reverse the trend. Otherwise, by 2025 at the latest, a «window of opportunity» will open for Russia that would be devastating for all of Europe.

Imagine the collapse of Ukrainian lines in the east, followed by a Russian advance westward, where only a handful of Ukrainian soldiers would be left to stand in their way. Then the countries bordering Ukraine will put their armies on high alert, and Kyiv will demand a «no-fly zone» more vehemently than ever—which would mean NATO would have to target Russian fighter jets. And that, in turn, would mean war—not just in the propaganda and paranoia of the Russian leadership, but in very real terms. An escalation that no one in their right mind could wish for. It should be noted, however, that while NATO currently considers this scenario unlikely, it is primarily because Russian officers in the field have repeatedly demonstrated their incompetence. But relying solely on the enemy’s incompetence is a dangerous gamble.

Unfortunately, it also seems unlikely to me that the West would equip Ukraine for a genuine counterattack in 2025—and that such an attack would succeed. Theoretically, it would be possible, but the political will (and the necessary tactical foresight) among those in charge is clearly lacking. As I said: The combined mega-economy of the European Union could afford the cost of about 40 billion dollars per year, and it wouldn’t be entirely too late yet.

Ultimately, the following scenario seems most realistic to me: Ukraine will more or less hold its positions in 2024. It is quite possible that Russia will indeed find no way to turn the aforementioned current advantages into successes on the battlefield. But: A stalemate with nearly 20 percent of Ukraine’s landmass under Russian occupation—and no prospect of change—is not a promising outlook. Why, you might ask? After all, many wars «fizzle out» in a similar way!

Because inaction will lead to ever-louder calls for «peace talks.» And if those talks were to take place, and Ukraine were to make concessions… what would be left? A Russia that despises the West, one that would continue to harbor resentment toward NATO even after a sham peace imposed on Ukraine. A Russia that would keep its military machine running to fill the gaps in its arsenal and then expand its ground, air, and naval forces. A Russia that possesses tactical and strategic nuclear weapons, holds its neighbors hostage, and is capable of threatening and intimidating an entire continent at will—a continent, mind you, that may then no longer be able to turn to a strong ally across the ocean for help. If we do not act today, we will still have to defend ourselves against a Russia with aggressive geopolitical ambitions in the near future. Only then will that Russia be much stronger, and we will pay a high price for our hesitation.

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* General Sir Richard Lawson Barrons is a retired British Army officer. From April 2013 until his retirement in April 2016, he served as Commander of Joint Forces Command and was thus one of the six Chiefs of Staff of the British Armed Forces. His military career spanned the final decade of the Cold War and included leadership roles—from captain to general—in military operations in Bosnia, Kosovo, Northern Ireland, Iraq, and Afghanistan. Today, he works internationally as a consultant and crisis and security expert.

Swiss Distribution: Who is Valora?

Pierre-André Konzelmann: At Valora, we aim to bring a little happiness to people on the go with a comprehensive «Foodvenience» offering. Our strategy combines fresh food, merchandise, and services for everyday use. Through its various brands, Valora operates over 2,800 mostly small-format retail locations in high-traffic areas across Switzerland, Germany, Austria, Luxembourg, and the Netherlands. We also operate one of the world’s leading production facilities for pretzel-style baked goods. The Valora Group is the European retail division of the publicly traded Mexican company FEMSA.

 

How are Valora's distribution models structured?

We operate our retail locations as agencies, franchises, and company-owned stores, with the majority operating under the agency system.

 

The Avec stores were operated under a franchise model for years. Some time ago, the company switched to an agency model. What were the reasons behind this decision?

For us, there is no such thing as «the best» distribution model; rather, there is the model that best fits our business strategy. A transparent pricing strategy, product promotion, and the timely availability of new product lines are very important to us. In addition, we want to support our partners as best we can in all matters so that they can focus on their day-to-day business. That is why we have opted for the agency model, under which, for example, we also provide agency operators with a location in a high-traffic area.

 

What were the main challenges involved in this transition?

It was particularly important for us to maintain the flow of information with our agency partners, to explain the legal aspects transparently, to highlight the benefits of this model, and to closely support them through the transition phase—in other words, to answer questions such as: What’s in store for me? What will change for me? Who can help me? Providing various types of information was also very important to us—specifically, conducting training sessions and preparing detailed documentation.

«At the beginning of any change, there are always obstacles, and it's important to navigate around them using the right approach.»

 

How did the sales partners react to the changes?

It was an opportunity, but one that required a great deal of active effort on both sides. The lesson we all learned was that the transition is a phase that requires a lot of time and discussion, and that we need to set aside enough time for it.

 

Even though Valora has abandoned its franchise model in Switzerland, are there still reasons to support franchising?

Yes, there are still situations where franchising makes sense, especially when it comes to expanding into new regions or countries, sharing capital and risk, or getting certain locations up and running more quickly.

 

Can «universally applicable» lessons for the retail industry be drawn from Valora’s experience with transitioning to a new sales model?

In summary, I’ve learned the following: a clear strategy, thorough preparation, a steady flow of information between the parties, frequent one-on-one conversations, and perseverance. Fundamentally, I’m convinced that a strategy only takes effect over the years. At the beginning of any change, there are always obstacles, and it’s important to navigate around them using the right approach.

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The Difference Between Franchising and an Agency

Franchising and agency agreements have in common that they aim to sell products and services, with the principal collaborating with independent sales partners (franchisees and agents) on the basis of a contract. They differ primarily in terms of responsibilities, the investment required for business operations, and, consequently, the allocation of risk. In addition, the legal frameworks differ.

Responsibilities

In franchising, franchisees are responsible for the day-to-day operations of their business, including staff, inventory management, and customers. However, the franchisor provides support to ensure that the businesses comply with the franchisor’s standards and guidelines. The franchisee acts in their own name and on their own account. In contrast, while an agent typically assumes responsibility for marketing their principal’s products or services, However, customers have a legal relationship with the principal. Accordingly, the agent acts on behalf of the principal and for the principal’s account. This allows the principal (unlike the franchisor) to set the prices for products and services.

Investments

Franchisees make an initial investment in their business and cover ongoing operating costs, specifically for the goods they sell. Agents, on the other hand, do not make any product-related investments.

Risk Assumption

The franchisee bears the business risk for their operation, including the products. They are therefore entitled to the corresponding profit. The agent bears no inventory risk but receives a commission for their business activities on behalf of the principal.

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This interview is a contribution from the m&k partner association Swiss Distribution. It was led by Dr. Christoph Wildhaber. He has been working in the field of sales for 30 years, including as an attorney. 

m&k: We are talking about the end of April 2024 - a time when the Middle East is experiencing a period of enormous volatility. Did this period begin with the attack on Israel on October 7, 2023 - or could trends that made an escalation likely be observed even before then?

Kim Ghattas: First of all, October 7 itself was as "unlikely" as it was unpredictable for me; I don't think anyone anticipated a Hamas attack of this magnitude. But as for the months before ... I remember a kind of "deceptive calm" in the region. And this "calm" usually means that something is brewing under the surface. I wrote an article in January 2023 in which I warned that the dynamic between Benjamin Netanyahu and right-wing conservative members of his government on the one hand; Iranian leader Ali Khamenei on the other - combined with the fact that both are fighting to retain power in their countries - could result in severe turmoil. In the same text, I noted that the deteriorating economic situation in Egypt and the increasing frequency of internal unrest in Syria could have consequences far beyond both countries. And parallel to all this, there have been more and more reports of a rapprochement between Israel and Saudi Arabia, of a normalization of relations ... while this sounds positive at first, "peace agreements" in the Middle East always set my alarm bells ringing. Because you can be sure: For every treaty that is concluded between two former antagonists, there is a third party that tries to prevent it. But, again, October 7 and at least some of the knock-on effects were not on my radar.

"There was a kind of 'deceptive calm' in the region. This usually means that something is brewing beneath the surface."

 

The images from Israel shocked the international community - gruesome scenes, a terrorist operation that did not even spare women, children and the elderly.

Yes, it is difficult to even put into words what happened and what we saw. It was a nightmare scenario for Israel and the victims were mostly defenseless, unarmed civilians. Many young protesters who now support the Palestinian cause should bear this in mind - while of course being allowed to express their support for the Palestinian civilian population who have been through so much in the last 75 years and have suffered even more since October 7, 2023. I call for compassion for all innocent people who are suffering. By the way, the morning after, we in Lebanon were also wondering what would happen next. We know the patterns; we are always worried about being drawn into conflicts. Because we've experienced that several times before.

 

Can you give examples?

Do you remember when Hamas kidnapped the Israeli soldier Gilad Schalit in Gaza in 2006? Israel responded with a military intervention, which in turn led Hezbollah to kidnap three Israeli soldiers on the border with Lebanon "in solidarity with Hamas". This triggered a wave of Israeli attacks on Hezbollah positions in Lebanon; attacks in which, of course, not only members of the extremist organization were killed. After 34 days of fighting, we saw more than 1,200 dead, the destruction of civilian infrastructure and, unfortunately, no significant effect on Hezbollah's ability to act. Any spark can turn into a conflagration in the Middle East, and if you live there, you are constantly aware of this.

 

I would be very tempted to ask you for your forecast for the development of the current Israel-Iran conflict - but as soon as we distribute this issue, it could be that the "News Cycle" has already overtaken us.

Perhaps I should just say something general about the matter then: I'm really the last person to welcome the escalation we're seeing, but in terms of the "patterns of war" ... these conflicts, roughly speaking, always go in one of two directions: Either there is a massive escalation or the prospect of such an escalation suddenly seems so realistic that the actors involved take a step back from the brink. It is almost ironic that it sometimes takes such "peaks" for the parties involved to realize what is at stake. For them to realize that they need to return to the negotiating table. So, no prediction, but: either we will soon see the beginning of stabilization - or we will witness a catastrophe.

 

At the risk of sounding rather naive: I was surprised that Iran apparently "suddenly" took such an offensive position. The public's attention seemed to be focused more on the Israeli offensive in the Gaza Strip - and to some extent on clashes with Iranian-backed groups in Israel's neighboring countries.

Iran has long staged itself as the defender of Palestinian interests, albeit with limited use of its resources. Israel has stepped up attacks on enemy targets since last fall, and by bombing the Iranian consulate in Damascus - as well as killing the high-ranking Iranian dignitaries on the ground - has probably miscalculated quite a bit. How does such a miscalculation come about, you may ask? Well, Israel has been bombing Iranian "proxies", weapons depots or military production facilities in Syria and Lebanon for years; and nothing has ever happened to give pause to these actions. You have probably opened the newspaper from time to time and read something like "Israel flies attacks on Iranian depots in Syria". Then you thought: "Oh, here we go again" ... turned the page and forgot about it. But Iran hasn't forgotten anything, Iran has counted and decided to use its regional influence - and its rather simple, but not insignificant, arsenal of weapons.

"The events in the region are all too often sketched in very broad brushstrokes."

 

I realize I seem to have a weakness that US talk show host Trevor Noah also talked about when you appeared on his show: European and American media often don't dig deep enough; don't look hard enough for the real causes of developments in the Middle East, do they?

Unfortunately, this is true. The events in the region are all too often sketched in very broad brushstrokes, events are portrayed in a highly simplified manner and entire countries are lumped together. Clichés and generalizations dominate the narrative. This is unfair to the Middle East, its rich cultural heritage and, not least, the people who live in the region. The vast majority of them want peace, dignity, justice, work and a future for their children. To mention these people in the same breath as extremists of all stripes ... it always affects me as an author, but also as a Lebanese woman.

 

Can you explain to yourself - and to us - the tendency towards excessive "simplification" in the Western media?

I don't deny that reporting on the Middle East is a complex, challenging task. Then again, reporting on any other region - including Europe and the US - that has a turbulent history and a mélange of cultures is hardly any different, is it? I think part of the simplistic narrative stems from the saying "If it bleeds, it leads": when a bomb explodes or a suicide bombing occurs in Iraq, Lebanon or Syria, the number of victims appears in the Western news, a few clicks are generated ... and then it's on to the next topic. But this is a disservice to the viewers and readers: most people want to be informed, want to learn, want to be intellectually challenged - there is no need to actively "dumb down" them. I regularly appear in schools with my book "Black Wave", and the young people I meet there are 16 or 17 years old. Not only do they understand the book, they also have hugely advanced thinking about what's happening in the Middle East and ask brilliant questions. I try not to use the same style as many geopolitical analysts. But I do research, sometimes for several years, and then I put my research into words that are as clear and accessible as possible. Believe me, this is guaranteed to reach the audience. And that should be our aim, because otherwise "dumbing down" quickly becomes a mixture of different, concrete dangers.

 

Which are?

The Middle East has long been characterized by conflict. But it is not a lost cause. What is going on there is not completely unsolvable, and the region is not "a place where people have been fighting for millennia and will continue to do so for millennia to come", as President Obama once said. If this narrative is not finally overcome, it will be impossible to devise sustainable political solutions - because there is an implicit belief that this would not help anyway. And there will also be major obstacles when it comes to finally finding a sustainable solution to the swelling migration flows towards Europe. Europe is ageing and needs immigration, but if we are afraid of migrants, how can we welcome them? The final step after the cliché and fear is dehumanization: "They are not human. They are not our equals." ... We can see in the Middle East what that leads to. That there are deaths when one side tries to deny the other their humanity. Let's not make the same mistake.

 

You mentioned your - excellent - bestseller "Black Wave", which attempts to explain the rivalry between Saudi Arabia and Iran, but also the Middle East, without generalizations and "en détail". You are curious and persistent: qualities that have to do with your entry into journalism?

I was born into the Lebanese civil war in 1977, so from my earliest childhood to my teenage years I only knew conflict and unrest. When the situation calmed down, I wanted to know: "How could it come to this, that my country has been self-destructing for fifteen years?" No one could give me a satisfactory answer, so I had to go in search of it myself. Of course, my career has evolved - I worked for the BBC, the Financial Times and The Atlantic for two decades - but the constant is still that I want to understand things and then explain them to others. After "Black Wave" I decided that books were probably best suited to my purposes, so I'm now writing a sequel of sorts.

 

Do you think people would understand the world better if they consumed more "long-form" journalism instead of posts on X (formerly Twitter), TikTok and Instagram?

I use a few of those channels too. (laughs) So I'm not in a position to tell people not to do that. But I think the balance matters - two-minute explainer videos on TikTok and live feeds about rapidly changing situations can sometimes be helpful, but there needs to be content that is in-depth. The recipients will be looking for it, so we have to produce it.

 

May I ask you a personal question? Given what you have chosen as a profession; as a critical writer, do you sometimes worry about your safety when you are traveling in your hometown of Beirut or the region?

I don't think about that so as not to be paralyzed. I am someone who calculates risks carefully - I avoid reporting on active combat operations, for example, unless the "war finds me". I was in Lebanon when Israel attacked in 2006, so I wrote about that. But I was also in Baghdad just before the American invasion in 2003. I thought about staying there, but then my parents called me; my mother was crying on the phone. They felt that they had just managed to get me through the Lebanese civil war, and now I was going to voluntarily expose myself to another war? "It's just not worth it," I said to myself. But please understand: That was, that is an individual decision. I have friends and colleagues who have made a different decision - and whom I greatly appreciate. Like me, they grew up in Lebanon and are still war reporters today ... as strange as it sounds, they may have become "addicted" to it. I wanted to avoid that at all costs.

 

"Addicted" to war? I'll have to ask you for an explanation.

I'm sure no one who hasn't experienced it for themselves can understand that. I don't want to seem cynical, but - when the civil war in Lebanon ended in 1990, I suffered ... you could say I had mild depression. In war, you are confronted with existential problems every day: Where do I get water, when will there be food, are we safe in our home right now? Then the fighting stops and all the thoughts that previously had no place break free. This is how it is for many of my colleagues who report on armed conflicts: In the center of the storm they feel alive, in everyday life they lack the "kick". I never wanted a life like that.

 

My question was also aimed at whether you are afraid of political persecution - after all, you criticize some very powerful people in your writings.

You can be killed for journalism or thrown in prison. Both have happened to people in my immediate circle. But: I always criticize all sides in a balanced way ...

 

... You described yourself as an "equal opportunity critic" on Trevor Noah's show ...

Yes, I accept that the people I write about may not be happy about my work. But no one will be able to say I don't back up my statements with facts; and no one will be able to say I don't target "the other party" as well. I don't consider myself an activist, not a polemicist.

"You can be killed for journalism or thrown in prison. Both have happened to people close to me."

 

In addition to your role as a Middle East expert, you worked for several years as a White House correspondent; accompanied Hillary Clinton on many trips as Secretary of State - and published the book "The Secretary". You have first-hand knowledge of diplomatic processes. Is global diplomacy still working - or is it irreversibly damaged?

It has to work. Should we just let the guns do the talking? Sure, we are seeing the emergence of a multipolar world order, but we are still on a planet where only the US can do certain things. The mitigation of the Iranian attack on Israel on April 13 - the fact that almost no missiles got through was not just due to the "Iron Dome", but to American warships in the region and the coordination of a defense strategy by American intelligence services. What does this have to do with diplomacy? Well, I don't believe in a world in which there will no longer be any superpowers. There will always be superpowers, there will always be countries with enormous military, economic and cultural influence. Countries that are able to help restore peace or destroy other nations at the snap of a finger. And the interests of these countries must be discussed and resolved diplomatically, because the alternative would be ... less than desirable. And if we could even get said superpowers to rally behind a common goal - as unlikely as that may seem at present - imagine how much good could be achieved! A diplomatic solution must be found for Ukraine, a diplomatic solution must be found for the tragedy in Gaza. What other solutions are there? Should the parties involved fight until one side is wiped out? Or, in a worst-case scenario, the whole world?

 

Am I right in assuming that you would regard an isolationist US government - after the elections in November, for example - as devastating for the Middle East?

"Devastating" is a strong term, but such a government would not be good. Who else is exerting pressure for a peaceful solution in our region? China? If the Chinese wanted to, they would have shown more initiative long ago. Of course, they don't have the same historical ties with Israel as the USA - they are not a major arms supplier - but if the Chinese were interested, they could do a lot more. They do want the situation to calm down so that world trade is not disrupted and oil prices do not rise, but they have no principles that would persuade them to act in the Middle East. And the Russians are a completely different issue anyway. Everyone complains about the United States, then a crisis starts and everyone says, "Hey, USA, when are you going to do something about it?" I agree with Michael Mandelbaum's book "The Frugal Superpower": I still much prefer a world in which the USA is powerful to a world in which it is weak.

 

And the United Nations? Is it in decline as an institution - or could it play a more important role again in the future?

The idea that the United Nations is in decline is based on the premise that it has achieved a great deal as an institution in the past: After all, only those who are strong can become weaker. How did this past strength, which many assume, manifest itself? There were clever negotiators, influential secretaries-general ... but did the UN concept work as it should? On the other hand, if we say that diplomacy is the only way out of the geopolitical problems of our time, perhaps we still need to try to restore the "power" of the United Nations in whatever form. I repeat myself, but say it again: more war cannot be the answer.

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Kim Ghattas is a Lebanese journalist and author. Born in the turmoil of the Lebanese civil war, she developed a strong interest in political and social processes in the Middle East as a teenager - and later analyzed these processes for the "Financial Times" and "The Atlantic", among others. She also worked as a US correspondent for the BBC for several years, focusing primarily on global diplomacy. Today, she primarily writes books, such as her bestseller "Black Wave", which traces the deep rivalry between Saudi Arabia and Iran.

With her album *Cowboy Carter*, Beyoncé (whose full name, though rarely mentioned, is «Giselle Knowls-Carter»—which explains the album’s title) has pulled off a major coup: Not only has she managed to give country music back a part of its roots, but she has also succeeded in delivering an extraordinary lesson in branding through a «double provocation.».

Contrary to the Clichés

Country music—just like Western movies and Knowls‘ home state of Texas—was considered the domain of middle-aged or older white Americans who lean toward the conservative end of the political spectrum. Traditionalists who, while occasionally accepting rebels like Johnny Cash or the perpetually marijuana-influenced Willie Nelson, but who—one might assume—would take little pleasure in seeing a Black R&B artist perform the songs that define the identity of large parts of the U.S.

A Double Provocation

Beyoncé, of course, did her homework—thoroughly, over the course of half a decade, as she explained in an interview about «Cowboy Carter»: On the one hand, Black musicians like DeFord Bailey and Charley Pride shaped the country genre from the very beginning; on the other hand, the idea of the «white Wild West» is nothing more than a cliché. Black cattle herders have always been there; it was Hollywood that began to gloss over this fact. With her new album, the artist challenges those who cling to a perception that is, at the very least, inaccurate—and in many cases, outright racist. All she needs to do is tell the truth—she doesn’t have to (over)stretch the «country brand,» but rather, with archaeological precision, bring to light the part of the brand’s core that had been buried.

Many of Beyoncé’s longtime fans also felt provoked, fearing that their idol was aligning herself with controversial ideologies in order to tap into a new audience—but by freeing country music from its clichés, Beyoncé directly resolves this provocation. And she demonstrates that her «personal brand» stands not for division, but for bridging gaps and overcoming dividing lines.

… and everyone wins

In the end, everyone wins: Beyoncé as an artist, because she garners enormous attention through this double provocation; country music, because it becomes richer and more diverse; and the musician’s «personal brand,» because she acts as a unifying force in often divisive times. Oh, and: «Cowboy Carter»—notwithstanding everything said so far—is simply a tremendous listening pleasure. And without that, even the smartest branding efforts would likely be for naught.

P.S. My favorite songs on *Cowboy Carter*: «Texas Hold’em» and «Jolene,» a great cover of Dolly Parton’s 1970s hit. It’s worth a listen.

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* Alexander Haldemann is the CEO of Publicis Groupe Switzerland.