Wow! And I thought after Lincoln, it would be tough to like another American political figure!
- Vinit > -----Original Message----- > From: > [EMAIL PROTECTED] > [mailto:[EMAIL PROTECTED] > et] On Behalf Of Udhay Shankar N > Sent: Friday, June 29, 2007 2:19 AM > To: [email protected] > Subject: [silk] The Transformation of Al Gore > > Very interesting piece from Fast Company on how > Al Gore has gone from failed politician to tycoon and > (potentially) kingmaker. > > Udhay > > http://www.fastcompany.com/magazine/117/features-gore_Printer_ > Friendly.html > > Fast Company > Al Gore's $100 Million Makeover > > Not long ago, he was the butt of jokes--lockbox, > earth tones, a postelection beard. Then he dusted > off an old slide show and jumped with both feet > into the private sector. The untold story of how > an epic loser engineered what may be the greatest brand > makeover of our time. > > From: Issue 117 | July 2007 | Page 70 | By: Ellen McGirt > > Al Gore is a funny guy. And, for his $175,000 > speaking fee, he tells this story: after leaving > the White House and heading back to Tennessee > sans motorcade--"in a rented Ford Taurus," he > sniffs--he and Tipper stop to get a bite to eat > at a Shoney's, "which, as you may know, is a > low-cost family restaurant." The people in the > restaurant "made a huge fuss...over Tipper." > Then, a man spies Gore and stage-whispers, > "Didn't he used to be the Vice President? He's > fallen so low." Peals of delight from the > audience. Gore smiles back. It's a nice moment. > > But wait, there's more. Later, he goes on, he > attempts the same story in Nigeria. Punch line, > laughter, applause--no problem. The next day, an > official at the airport yells out to him, "Call > Washington!" Hmmm. "What could be wrong in > Washington?" he muses, scratching his chin. > "That's when I remembered it could be a lot of things." The > crowd goes wild. > > Come to find out, Gore explains, a reporter in > Nigeria had lost a bit of the story in > translation. "Vice President Al Gore announced > yesterday that he and his wife, Tipper, have > opened a low-cost family restaurant called > Shoney's and will be running it themselves," Gore > intones. By the time he landed in the United > States, the story had hit the wires, and he > was--again--the butt of jokes on Leno and > Letterman. Three days later, he received a > handwritten note from Bill Clinton, > congratulating him on the Shoney's deal. "We like > to celebrate each other's successes in life," > Gore deadpans to uproarious laughter. > > Funny guy, indeed. In one well-delivered > anecdote, Gore manages to make fun of himself, > the election, his relationship with his former > boss, the Bush administration, and the media--and > still come out on top. Gone is the robo-candidate > who provided fodder for conservative bile and > late-night merrymaking. (For a good time, google > "SNL" and "lockbox.") After the 2000 election, > Gore might have slunk away to a loser's life: a > memoir here, a visiting professorship there, the > occasional keynote speech or celebrity golf > tournament. Instead, in what may be the greatest > brand makeover in history, Gore is being hailed > as a visionary who was right about everything > from global warming to Iraq. At 59, he's an > Academy Award winner, a bestselling author, a > front-runner for the Nobel Prize, and a concert > promoter who turned out to be a bigger rock star > at this year's Grammys than the rock stars themselves. > > What no one is talking about is that he has also > become a stunningly successful businessman--and > that has fueled his comeback. Since his > nonelection, Gore has become a millionaire many > times over, bringing him, in financial terms, > shoulder to shoulder with the C-suite denizens he > used to hit up for campaign cash. In addition to > the steady flow of six-figure speaking gigs, he > has become an insider at two of the hottest > companies on the planet: at Google, where he > signed on as an adviser in 2001, pre-IPO (and > received stock options now reportedly worth north > of $30 million), and at Apple, where he joined > the board in 2003 (and got stock options now > valued at about $6 million). He enjoyed a big > payday as vice chairman of an investment firm in > L.A., and, more recently, started a > cable-television company and an asset-management > firm, both of which are becoming quiet forces in their fields. > > Financial disclosure documents released before > the 2000 election put the Gore family's net worth > at $1 million to $2 million. After years of > public service--and four kids needing high-priced > educations--Al and Tipper used to fret > occasionally about money. Not anymore. They have > a new multimillion-dollar home in a tony section > of Nashville and a family home in Virginia, and > have recently bought a multimillion-dollar condo > at the St. Regis condo/hotel in San Francisco. > Available data indicate a net worth well in excess of $100 million. > > It's good to be the president, even > metaphorically, of Al Gore Inc. And that helps > explain why he's wary of reentering the political > fray. Here, then, is the untold tale of Gore's unlikely rebirth. > > Gore greets me at the door of his suite at the > Regency Hotel in New York in late May: "I haven't > seen you since Orlando!" He is in the city to > promote his new book, The Assault on Reason. I'd > first been introduced to him several weeks > earlier at the Tribeca Film Festival, and we > chatted again briefly in Orlando, Florida, at a > tech-geek conference of Adobe software > enthusiasts (who were treated to his > global-warming speech, including the Shoney's > bit). But this is our first official interview, > and he begins with his game face on. Ever polite, > he has been fielding questions about politics > nonstop--including at a taping of the PBS show > Charlie Rose the night before. He visibly > relaxes, though, when we start talking about > global business. "I have really enjoyed the > business world much more than I expected," Gore > says, settling back in his chair. He speaks > animatedly about incentive structures and how > information flow creates opportunities. > > One problem he had in politics, he says, was > identifying an issue too early--"'predawn' is the > term I use"--to be able to act on it. But "in the > business world, particularly at a time when > things are moving so swiftly, if you can see it > early, you can make a business opportunity out of > it." He pauses. "For whatever reason, the > business world rewards a long-term perspective > more than the political world does." > > By his own account, his makeover has been less > the result of a conscious strategy than of a few > smart initiatives that happened to ripen in > sync--from Google's towering growth to the recent > profitability of his media startup, Current TV. > "I've remarked to Tipper how amazing it is that > both Current and Generation [Investment > Management] have reached the next stage of their > development at almost exactly the same time." > What defines the ventures he has taken part in, > he says, is "a revolutionary and transformational > concept" in industries that badly need change. > But did he expect such enormous financial > success? He pauses. "It's all been a pleasant surprise. And a > lot of fun." > > That's not how things looked in the first years > after that trip back to Nashville. In the spring > of 2001, Gore returned from a vacation in the > Mediterranean with an unfortunate beard, and the > late-night jokesters had a field day. His first > business move--signing on as an adviser to > Google--proved prescient, but Google wasn't yet a > powerhouse. Almost no one took note. (On his > first day at Google, Gore recalls with a laugh, > "Larry [Page] and Sergey [Brin] and the entire > executive team had false beards on.") > > His most public effort was dusting off a slide > show on global warming he had put together in > 1989. It was full of depressing data about > melting ice caps and killer hurricanes--not a > likely vehicle to spark a resurrection. As > recently as May 2004, he took some serious > ribbing for presenting a version of it at an > event timed to coincide with the goofy > global-warming film The Day After Tomorrow. A few > months later, when television producer turned > environmental activist Laurie David invited her > A-list pals to see the slide show, she had a hard > time getting them to attend. "People were still > mad about the election," she recalls. "And nobody cared about > global warming." > > What has changed since then is, in part, > political: John Kerry fared worse than Gore at > the polls, and President George W. Bush has seen > his approval ratings tumble. Hurricane Katrina > played a role, too, stirring fears of climate > change. But Gore's business efforts have also > come together in a crescendo that cannot be > ignored. In fact, to understand the personal > drive and vision behind Gore's revival--and the > philosophy that continues to take his business, > if not his political, brand forward--the place to > begin is with his two entrepreneurial efforts, Current TV and > Generation. > > Joel Hyatt is comfortably ensconced in his > loft-style San Francisco office at Current TV, Al > Gore's now-profitable cable network. Hyatt, the > CEO, is a longtime friend of Gore's who made his > millions by founding Hyatt Legal Plans, a > provider of low-cost legal services that was > acquired by MetLife in 1997. He has taught > entrepreneurship at Stanford's business school > and chaired the Democratic finance committee > during the 2000 election. He doesn't talk easily > about his front-row view of Gore's disputed loss, > and when he does, his voice shakes with emotion. > "It's hard to move on from something like that," he says. > > But he did. After the election, Hyatt began > talking with Gore about the sorry state of > television and the role that the broadcast media > play in the public sphere. "The line between news > and entertainment is blurred," as Gore now puts > it. "Much of TV is mind deadening. It's a one-way > conduit of knowledge." The two men discussed what > Hyatt calls "an utter lack of innovation in the > media industry"--a barely disguised oligopoly, as > they saw it, controlling both content and > competition. "We decided that we wanted to build > a new kind of media company to democratize--small > d--television first and the media industry > generally," Hyatt says. They would give viewers > from 18 to 34 the means to create and control > what went on the air--a user-generated model now > familiar thanks to the likes of YouTube and > MySpace, but a shot in the dark for TV back in 2002. > > Undaunted, Gore and Hyatt went looking to buy a > cable-TV network. The effort quickly became a > disaster. Meetings were taken, favors were called > in, but nobody wanted them. "We were told > repeatedly, 'You're not going to start a > cable-television company,'" Hyatt recalls. > "'There's no room in the industry for you. > Period.'" The only possibility they could find > was a yawner of a Canadian news network, called > Newsworld International, or NWI, owned by the > French company Vivendi. Yet even here, Gore and > Hyatt were initially rebuffed. Gore had to tap > then French president Jacques Chirac to arrange a > meeting with Vivendi executives. Negotiations > dragged on for months. "There were probably at > least seven or eight times when [the deal] was > dead and all but buried," Gore recalls. Finally, > after nearly a year of nail biting and a cameo > appearance by Barry Diller, who owned a part of > the entities--Gore lobbied him in person--Gore > and Hyatt snagged NWI in May 2004 for $70 > million. (Their investment partners included > former Goldman Sachs senior director Philip > Murphy, who is now the Democratic finance > committee chair; Richard Blum, husband of > California Senator Dianne Feinstein; Sun > Microsystems cofounder Bill Joy; and Bob Pittman, > former chief operating officer of AOL Time Warner.) > > They had the network, renamed Current TV, but > they still didn't know precisely what it would > air. At a meeting around Hyatt's kitchen table in > the summer of 2004, the nascent management team > kicked around ideas--and kicked them to the curb. > One option was to give 200 talented unknowns all > around the world video equipment, train them, and > set them loose to tell stories. Hyatt and Gore's > response: Not good enough. Gore was looking for > something "transformational," recalls Current > exec Joanna Drake Earl, a veteran of Paul Allen's > Moxi media startup. "Transformational?" Earl > remembers with a laugh. "I mean...that's hard to manage to." > > As Current's August 1, 2005, launch date > approached--the old Canadian news programming > would end July 31--tensions ran high. "At one > point," says president of programming David > Neuman, who had produced sitcoms on NBC and Fox, > "I got down on my hands and knees and begged for > more time." Finally, the team agreed on a > formula. They would hire a crew of "vanguard > journalists," but work toward the goal of > creating a network largely shaped by its viewers, > via a Web site that functioned like a production community. > > Current TV, Gore's cable channel, turned a profit in > only two years. > > Today, less than two years in, at least 30% of > the network's content is viewer generated, called > VC2. Amateur filmmakers, some in their teens, > upload three- to eight-minute documentary-style > nonfiction segments, called "pods," to the > Current Web site. Online modules help aspiring > filmmakers navigate everything from framing a > shot to negotiating music rights. The online > community comments on the videos and votes to > "green-light" pods that they want to see on air. > Makers of the pods that are aired get $500; > Current gets a library of content to use in > perpetuity--with no production costs. > > The result is surprisingly engaging and unlike > anything else on TV. The pods shuffle through > everything from cutting-edge bands and dogsled > races, to African villagers struggling with > HIV/AIDs and dispatches from soldiers serving in Iraq. > > Current has also worked with advertisers to > create viewer-generated commercials, or VCAMs. To > date, some 32 VCAMs have hit the air. "Once we > heard the concept, we got on board early on," > says Brett Dennis, director of media marketing > for T-Mobile, which also runs traditional spots > on the network. "It provided us with a > groundbreaking way to reach customers, and to > encourage them to engage with our brand." Plus, > it's delightfully cheap: $1,000 for every > commercial that gets on the air. (If the ad is > distributed on other networks, the fee can go up > to $50,000.) T-Mobile has already selected three > VCAMs, and hopes to do more; other VCAM > advertisers include Pop Secret, Sony, and > L'Oréal. Says Dennis: "It's the best example > we've seen of the convergence of a traditional > network model and the user-generated Internet model." > > Gore is clearly happy with Current TV's progress > and optimistic about its future. "The more people > who are watching, and the more people who are > contributing, the higher and higher the quality > goes of the pods from which we select." He adds, > "One of the happy problems we've had is > explaining Current TV to investors and > distributors. Nobody would believe how low our > production costs were, or how good the business > model was." Current TV is now in 38 million U.S. > homes via DirecTV, Comcast, Dish Network, AT&T > U-Verse, and Time Warner Cable. Its expansion > this year to the UK and Ireland on BSkyB and > Virgin Media will put it in another 8.2 million homes. > > "We have a belief that explicit recognition > of environmental, social, governance, economic, > and ethical factors affect business," says Blood. > > Current TV is making money, about a 10% margin on > cash flow, after less than two years, according > to analyst estimates; new cable networks > typically take four to six years to go into the > black. "Partly it's because they inherited some > distribution on DirecTV when they acquired NWI," > says Derek Baine, a senior analyst with Kagan > Research. He estimates that Current's license fee > is about 12 cents per month per subscriber, > roughly what an established player like Lifetime > gets, and projects that advertising, now 24% of > revenue, will pass the industry average of 43% by > 2010. "I think their model has made other networks sit up and > pay attention." > > While Gore was struggling to launch his cable > network in late 2003, he was also moving on > another front: starting an investment firm based > on a new definition of sustainability. > Metropolitan West Financial, an L.A.-based > asset-management outfit where he'd been vice > chairman for two years, had just been sold to > Wachovia. (Gore's former Senate chief of staff, > Peter Knight, was a Met West managing director > and had recruited him.) Gore had his hefty payout > from the deal, plus a desire "to incorporate > sustainability values into the financial-services > work that I was doing." Goldman's Murphy > introduced him to David Blood, then CEO of > Goldman Sachs Asset Management. "They were both > talking to me about similar things," Murphy > recalls, "deep conversations about emerging > markets, sustainability issues, and new ways of > making investments. They were both asking, 'Can > this make money? Can this be a business?'" > > "I was interested in creating a business around > investing, which I love, and philanthropy," Blood > says. He and Gore met many times, both in London, > where Blood is based, and in the United States, > to talk about values and skills. "It's not > exactly like choosing a spouse," Blood says of > selecting a business partner. But it's close. > "You have to know that you can work together, > have the difficult conversations. You need 100% > trust and confidence." They worked together on a > statement of values for their company, which they > named Generation Investment Management. When they > launched in August 2004, they made no move to > attract outside investors--which, despite the > catcalls from Gore detractors, was entirely by > design, says Blood. "We spent a year playing with > our own money," he says--a pool of about $100 > million from himself, Gore, Knight (whom Gore > brought in from Met West), and three other > founding partners. "We didn't want to raise money > first and then come up with an idea," Blood says. > "What we really needed to do was invent a new language." > > Rather than rely on short-term earnings > projections, they thought long-term investment > potential--and good management--could be better > gauged by looking at factors such as whether a > company was preparing for a carbon-neutral > future. Environmental stewardship, though, is > just part of how Generation defines > sustainability. "We think about how businesses > attract and retain employees, governance, > branding; how they operate in the community; and > how all of that drives their business strategy," > Blood explains. "We have a belief that explicit > recognition of environmental, social, governance, > economic, and ethical factors affect business." > Generation's research team, led by Colin le Duc, > has both environmental economists and traditional > buy-side equity analysts, who have learned to ask > a wider range of questions of the companies they > cover. The firm plans to build a long-term > portfolio of only 30 to 50 companies. Blood > claims that returns so far have exceeded > expectations, although he won't divulge > specifics. (See "An Inconvenient Portfolio" for some of the > firm's holdings.) > > The firm now has nearly $1 billion under > management, from 15 institutions, plus a few > individuals. And it has turned down some > investors. Says Blood: "Anybody who is expecting > a monthly report on how their stocks are doing isn't for us." > > A few million people saw An Inconvenient Truth," > says Kevin Wall. "I plan to deliver 2 billion > eyeballs." Wall is the producer of this summer's > Live Earth concerts--nine simultaneous events > across seven continents on July 7, on the model > of Live 8, to raise awareness for global warming > and money for the Alliance for Climate > Protection, a nonpartisan advocacy group of which > Gore is chairman. "The artists are not being > paid, I'm not being paid," Wall notes. > > His biggest unpaid superstar is Gore himself. On > the night of the Grammys this year, Gore went > from dressing room to dressing room backstage, > recruiting performers. He was in the midst of > lobbying the Red Hot Chili Peppers when he was > called to the stage to present the award for best > rock album--to the Red Hot Chili Peppers. When > the group came out to accept the award, they told Gore they'd > do the concert. > > Live Earth was inspired, Wall says, by An > Inconvenient Truth. After he saw the film at its > premiere, he talked to NBC Universal chief Jeff > Zucker about broadcasting the concerts across the > NBC properties and lined up the BBC and MSN as > partners, then reached out to Gore. "I told Al, > 'I don't need anything from you, I just want to hand you the mike.'" > > That Gore now finds himself the celebrity draw is > ironic, given that his star "performance" > revolves around a slideshow. When Laurie David > and the documentary team she'd > assembled--director Davis Guggenheim, producer > Lawrence Bender (of the Kill Bill movies), > producer Scott Burns (famous for the "Got Milk?" > ads), and coproducer Lesley Chilcott--went to San > Francisco to lobby Gore about making a movie, he > was reluctant. His global-warming spiel was just > a lecture, he said. How would it work as a film? > > He relented, though--in part because he was so > passionate about the slide show. Working first > with flip charts and a slide carousel, and now > with Apple's Keynote software, Gore found he > could talk to people in his own voice, without > the handlers, image consultants, and > intermediaries that turned him into a > sound-bitten, earth-toned version of himself in > 2000. Gore was happy to continue traveling the > country with his slides, but David had a more > aggressive agenda: "Let's get it out there!" > > The production schedule for An Inconvenient Truth > was so compressed that Gore joked it was like > making "Kill Al, Vol. Three," a friendly jibe at > Bender. Filming began in July 2005; the premiere > was at Sundance the following January. In > between, Katrina hit. "I was scheduled to give > the slide show in New Orleans that day," Gore > says. "The audience was the state insurance > commissioners who wanted to learn more about hurricanes and > global warming." > > The movie was released theatrically in New York > and Los Angeles in May 2006, in wide release in > June. And by March 2007, Gore was thanking the > Academy. Part of the proceeds from the film go to > the Alliance for Climate Protection. The film has > made more than $50 million worldwide; 50,000 DVDs > have been given away to schools and nonprofits, > and 850,000 copies of the book have been sold. > > Back in New York, I ask Gore to explain what he > meant when he said he wanted Current TV to be > transformational. He answers with a 10-minute > history lesson on the computer. "It's a geeky > analogy, but you're from Fast Company, so you'll > like it," he says good-naturedly. Sketching a > diagram on a file folder, he reveals just how > geeky he is himself. He certainly needs more than > 30 seconds to get his point across. > > That helps explain why, despite the interest from > so many Democrats in his political aspirations, > he seems genuinely distanced from the idea of > running for President--at least for now. "What > politics has become," Gore explains at one point > during our discussion, "is something that > requires a kind of tolerance for artifice and > manipulative communications strategies that I > just find I have in very short supply. I just > don't have the patience for things that seem to > be greatly rewarded in today's political system." > > Politically, his outsider status makes him a potential kingmaker. > > If this is sour grapes over 2000, it doesn't > sound like it--at least not from the vantage > point of 2007. "A politics of ideas, driven by > passion, seems to encounter a headwind," he tells > me. "I do think that the Internet is bringing > revolutionary transformation. I have not ruled > out the possibility of getting into politics > sometime in the future," he says, "but I don't > expect to. Because I don't expect things to > change. If they did change, then I would feel differently." > > As a political figure, Gore may be more palatable > as a possible dark horse than an actual > candidate--precisely because he seems incapable > of turning his passions into sound bites. And in > any campaign, he might find himself on the > defensive for his business activities. In his > slideshow tour, he has been paid by many > companies, which could be used to challenge his > integrity. (He routinely cuts or eliminates his > fee for schools and other nonprofits.) He also > headed the Apple board committee that cleared > Steve Jobs of wrongdoing in the stock-options backdating scandal. > > Sitting where he is, his outsider status makes > him a potential kingmaker among the Democratic > candidates. He has said he expects to endorse > someone eventually. Whoever gets the nod can > expect Gore's Alliance for Climate Protection to > run its own campaign on the issues. > > Gore sees no reason to apologize for not wanting > to jump into the electoral fray. As a > businessman, he can speak with a candor few > successful politicians can maintain. He has made > an enormous amount of money and achieved > positions of influence from technology to > financial services to media. He and Tipper are > even setting themselves up as angel investors for > a few early-stage tech companies they believe in. > In doing one end run after another around the > status quo, he has created a new life: a perfect > amalgam of environmental activism and a new type > of capitalism in which there is more than one > bottom line to consider, more than one master to serve. > > Feedback: [EMAIL PROTECTED] > -- > ((Udhay Shankar N)) ((udhay @ pobox.com)) ((www.digeratus.com)) > >
