Power to the people: Rachel Botsman talks collaborative consumption and more
Hailed as one of the world's top 20 speakers, Industry Moves had the pleasure of speaking with Rachel Botsman in the lead up to her session on 'people power' at this year's DOC16 conference. Botsman reveals what it was like growing up in her hometown in North London and shares her tips and tricks for delivering a seamless, engaging and authentic speech. She tells us about her passion for collaborative consumption, predicts how it could disrupt the superannuation industry and shares some of her favourite pieces of advice.
"You can have it all, but not at the same time." - Rachel Botsman
Q&A with Rachel Botsman
What ignited your passion for researching your theory of 'collaborative consumption'?
I'd love to give you a straight forward, linear answer...but it was really two things. I've always had a fascination with how human beings cooperate, why they cooperate and what that enables them to achieve, that's always been a thread through my work. Then I started noticing how technology was enabling us to share digital assets such as photos, videos, our daily thoughts, and I was convinced that it was the early stages of transforming how we would share all kinds of assets like our cars, our homes, our dogs, our skills, you name it.
What I was intrigued about with technology was not only the efficiency of the process, but how trust was changing so that we could share assets and collaborate and get away from many individual forms of consumption.
Using Uber and Airbnb as examples, have these online community marketplaces developed in the way you envisaged?
Yes and no. I think one thing to point out is that some of them are communities and some of them are purely marketplaces, so Airbnb for some people, is a real community. It's not just about renting spaces, it's about a different way of travelling. Others are very efficient marketplaces that match supply and demand and can scale very quickly because of network effects and I would put Uber in that category.
I thought they would be big but I actually thought that the tipping point would come earlier, it felt like a long time coming. When it did hit in around 2013 the growth was just astonishing. The fact that Uber is the fastest growing start up in history with the valuation of over $60 billion and Airbnb is now the most valuable hospitality brand in the world, above Hilton and Marriott, I wouldn't have said that in 2008. I think the surprising thing, and it's probably slightly naive, is that sharing in collaboration has got somewhat diluted and lost. I probably didn't anticipate how commercial it would become in terms of some people not really caring about that social component.
Using your theory of the shift between 'institutional trust' and 'distributed trust', what changes do you envisage over the next decade in the way the online community banks and invests for their retirement?
It's a great question. I'm actually writing my next book on the changing nature of trust. There are going to be huge changes, whether it's going to happen in the next ten years is questionable in terms of thinking "will people take their retirement savings and invest them purely in peer-to-peer markets and funds?" Because that's where it will end up. The value of the institution, both in terms of it's perceived stability and it's perceived value, and also all of the values of intermediaries that we're beginning to realise are what we actually pay for, that's what will get disrupted.
I think even though people say that they don't trust banks, even some community banks, there is still huge apathy and resistance around changing their behaviour which is where I think the time frame is going to be interesting.
You have been named as one of the world's top 20 speakers. What is the secret to keeping the audience engaged?
It's really tricky. I think you genuinely have to want to be there. You have to be really present. I can feel it, when I'm on the stage there is literally nothing else on my mind. Because I don't use any notes, it's a very delicate balance for me of being prepared, really thinking about who the audience is and what they want to hear and also what they might not want to hear. Maybe I can push them and hopefully inspire them. At the same time you also need to leave enough space to respond to what is happening in the room. Even though people aren't asking you questions, you can still feel their response. So I guess it's just about being very present and being prepared enough that you can just let go, versus just being scripted and tight.
The other thing is, and people forget this all the time, it's about being authentic and humorous. It never worked for me when I tried to be too clever, too funny, too smart or take someone else's lines, you've just got to be you. It's the biggest mistake that some people make and it's why I think that I probably could be better and more polished but I don't want to get coached for that very reason.
"Even though people say that they don't trust banks, even some community banks, there is still huge apathy and resistance around changing their behaviour" - Rachel Botsman
Did you find, in the early days, that you had to develop your presentation because it didn't always work?
It takes a lot of practice. I think I'm lucky because my material comes from deep research and it's new. I'm not just trying to aggregate lots of different trends. I think if you have a point of view and you have lots of material that makes it a lot easier.
In the early days, I probably tried to change things too much for each audience. You probably have to tell an example ten times before you really nail it. It's the thoughts that you're landing and how you're stitching these examples together that requires a lot of time. Also, it's not just about the content, about 80% of it is about creating an experience, making people laugh, having the light and shade is key to a great speech.
Who has had the biggest influence on your life/career so far?
There are different points in your life when someone has an important influence on you. I had a professor at Harvard who told me, very wisely, that my work would always, in some way, focus on how human beings connect with each other. Then, when I was working for President Clinton, I learnt the power of words and amazing speeches. I had a boss after that who told me that I was totally unemployable. He told me that I was a very strong introvert and that being in large organisations is not where I should put my energy.
So it's hard for me to just pick one person, I've been lucky to have very influential people whose advice I have taken on board.
It's interesting to think you're an introvert. I don't think we truly understand the definition of introversion and extroversion.
To use Susan Cain's definition, because she wrote that wonderful book Quiet, it's about where you get your energy from. People always say that "you look so comfortable up there", but I'm in a bubble up there, I'm with myself. That's not the tiring part, the tiring part is when you get off stage.
Where did you grow up and what was it like?
I grew up in North London and it was great. It's not so unusual today but for then I did have very unusual parents, they were both entrepreneurs. My Mum started her own business when I was three, she was one of the first people to put licensed music into adverts and as for my Dad, we could never really describe what he did because he was always changing. I think that had a huge influence on me, to know that I didn't have to take on a clear profession. I didn't love London growing up but now when I go back I really appreciate it as a place.
What's the best piece of advice that you've received?
"You can have it all, but not at the same time." Without a doubt. I think it becomes more relevant as you have children. Another one would be, "You can be in charge but you can never be in control." That's another one that you sometimes need to let go of. Good and bad things will happen.
How do you maintain a work/life balance?
It's hard and it's a discipline. I'm very careful about my time. I'm very cautious about how's it's spent and who it's spent with, who I'll say 'yes' to and who I'll say 'no' to. The other thing is just being very present in whatever you're doing. My kids know that when I'm working, I'm at work but when I'm with them, I'm really with them.
Do you have a secret skill or hidden talent?
I'm a pretty mean gardener. I've never really learnt about it but I just touch things and they grow, which is weird. I'm also a very good swimmer.
Rachel Botsman is a speaker at the SuperRatings & Lonsec Day of Confrontation Conference, DOC16, in Sydney on October 18.
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Industry Moves is a proud media sponsor of the event.
