Authenticity

1. Authenticity: The New Business Imperative

Business today, therefore, is all about being real. Original. Genuine. Sincere. Authentic.

The Rise of Real. Consumers are increasingly discerning between what is real and what is fake, and they are choosing to spend their money on offerings that they perceive as authentic. This shift is driven by a desire for genuine experiences and a rejection of contrived or disingenuous products and services. Businesses must prioritize authenticity to gain a competitive edge.

Beyond Goods and Services. The modern consumer sensibility has evolved beyond simply seeking available, affordable, and high-quality goods and services. Today, consumers want offerings that align with their self-image and values. This means that businesses must focus on creating offerings that are not only functional but also meaningful and personally relevant.

Rendering Authenticity. Just as quality became a key business imperative in the Service Economy, authenticity is now the new quality in the Experience Economy. Organizations must learn to understand, manage, and excel at rendering authenticity to meet the demands of today's consumers. This involves actively shaping how consumers perceive an offering to be real, original, and genuine.

2. The Experience Economy Drives the Demand for Authenticity

Now more than ever, the authentic is what consumers really want.

Experiences over Things. The shift to the Experience Economy has led consumers to prioritize memorable events that engage them in a personal way. As paid-for experiences proliferate, people are making purchase decisions based on how real they perceive an offering to be. This has created a demand for authenticity across all sectors of the economy.

Drivers of Authenticity. Several factors contribute to the demand for authenticity, including:

• The contrived nature of many staged experiences
• The impersonal nature of automated services
• The influence of postmodern thought and socially constructed realities
• The desires of aging baby boomers
• An eroding confidence in major social institutions

Conforming to Self-Image. Consumers now purchase offerings based on how well those purchases conform to their own self-image. What they buy must reflect who they are and who they aspire to be in relation to how they perceive the world. This requires businesses to understand and respond to the unique needs and desires of individual customers.

3. The Pervasive Supply of Inauthenticity

The very act of saying something is authentic immediately leads consumers to doubt said authenticity.

Ubiquitous Claims. The marketplace is saturated with claims of "real" and "authentic," often applied to products and services that are anything but. This overuse of authenticity-related language has diminished its value and created skepticism among consumers. Businesses must be wary of simply proclaiming their authenticity, as this can backfire and be perceived as disingenuous.

The Rise of Fakery. The prevalence of fake goods, counterfeit products, and simulated experiences has further fueled the demand for authenticity. Consumers are increasingly aware of the potential for deception and are actively seeking out offerings that they can trust to be genuine. This has created a need for businesses to be transparent and honest in their marketing and operations.

Axioms of Authenticity. The authors propose three axioms of authenticity:

• If you are authentic, then you don't have to say you're authentic.
• If you say you're authentic, then you'd better be authentic.
• It's easier to be authentic if you don't say you're authentic.
  These axioms highlight the importance of letting authenticity speak for itself, rather than relying on empty claims and marketing hype.

4. Rendering Authenticity: Five Genres of Real

Authenticity: Purchasing on the basis of conforming to self-image

Beyond Availability, Cost, and Quality. In addition to availability, cost, and quality, businesses must now manage the authenticity of their offerings. This involves understanding and responding to the unique needs and desires of individual customers. The authors propose five genres of perceived authenticity:

Five Genres of Authenticity:

• Natural: That which exists in its natural state, untouched by human hands
• Original: That which possesses originality in design, being the first of its kind
• Exceptional: That which is done exceptionally well, executed individually and extraordinarily
• Referential: That which refers to some other context, drawing inspiration from human history
• Influential: That which exerts influence on other entities, calling human beings to a higher goal

Applying the Genres. By understanding and applying these genres of authenticity, businesses can create offerings that resonate with consumers on a deeper level and foster a sense of trust and connection. This involves intentionally infusing elements of nature, originality, exceptionalism, historical reference, or social influence into their products and services.

5. The Authenticity Paradox: It's All Fake

All human enterprise is ontologically fake—that is, in its very being it is inauthentic—and yet, output from that enterprise can be phenomenologically real—that is, it is perceived as authentic by the individuals who buy it.

The Philosophical Perspective. From a philosophical standpoint, all human endeavors, including business, are inherently inauthentic because they are manmade, mechanical, and monetary. This means that no economic offering can ever be truly authentic in its essence. However, this does not mean that businesses cannot create offerings that are perceived as authentic by consumers.

The Authenticity Paradox. The authors introduce the Authenticity Paradox, which states that while all human enterprise is ontologically fake, its output can be phenomenologically real. This means that businesses can render their inauthentic offerings as authentic by managing the customer perception of realness. This requires acknowledging the inherent fakery of commercial activity and finding ways to connect with consumers on a deeper, more meaningful level.

Axioms of Authenticity. The authors add two more axioms of authenticity:

• It's easier to render offerings authentic if you acknowledge they're inauthentic.
• You don't have to say your offerings are inauthentic if you render them authentic.
  These axioms emphasize the importance of transparency and honesty in business practices.

6. Two Time-Honored Standards of Authenticity

This above all,—to thine own self be true; And it must follow, as the night the day, Thou canst not then be false to any man.

The Polonius Test. To render authenticity in business, companies must apply two time-honored standards:

• Being true to your own self: Is the offering true to itself and to your company?
• Being what you say you are to others: Is the offering what you say it is and not false to any customer?

Four Modes of Authenticity. The interplay of these two standards creates four modes of authenticity:

• Real-real: The offering is true to itself and what it says it is.
• Real-fake: The offering is true to itself but not what it says it is.
• Fake-real: The offering is what it says it is but not true to itself.
• Fake-fake: The offering is neither true to itself nor what it says it is.

The Goal of Authenticity. By striving to meet both standards of authenticity, businesses can create offerings that are perceived as genuine and trustworthy by consumers. This involves aligning internal values and practices with external messaging and customer experiences.

7. Deconstructing Authenticity: Ten Elements of Real

In any company, the real source of profit is thousands of individual actions by individual employees.

Ten Elements of Authenticity. To assess and improve the authenticity of a business, the authors propose ten elements, divided into two categories:

• True to Self:
  • Essence of enterprise: Who you are at your core
  • Nature of offerings: What you offer others
  • Effects of heritage: Where and when you came to be who you are today
  • Sense of purpose: Why you are in business
  • Body of values: How your identity is manifested
• What It Says:
  • Assigned names: Who you call yourself
  • Expressed statements: What you articulate you are
  • Established places: Where and when you're encountered
  • Declared motivations: Why you say you are in business
  • Displayed appearances: How you show what you are

Assessing Your Business. By examining each of these elements, businesses can identify areas where they are falling short of authenticity and develop strategies for improvement. This involves aligning internal practices with external messaging and ensuring that all aspects of the business reflect its core values and purpose.

The Path to Real-real. By mastering these ten elements, businesses can create offerings that are not only functional and valuable but also deeply meaningful and personally relevant to consumers. This requires a commitment to transparency, honesty, and a genuine desire to connect with customers on a human level.

8. From Marketing to Placemaking: Being What You Say You Are

The experience is the marketing.

The Limitations of Advertising. Traditional advertising is becoming less effective as consumers are increasingly bombarded with messages and have become more skeptical of marketing claims. This has created a need for businesses to find new ways to generate demand and connect with customers.

The Power of Placemaking. Placemaking involves creating physical or virtual places where customers can experience a company's offerings and values firsthand. This approach allows businesses to demonstrate what they are, rather than simply telling customers what they are. By creating engaging and memorable places, businesses can foster a sense of authenticity and build stronger relationships with their customers.

The Placemaking Portfolio. To maximize the impact of placemaking, businesses should develop a portfolio of experiences that includes:

• Flagship locations: Signature venues that embody the brand's essence
• Experience hubs: Locations in high-traffic areas that attract a large number of potential customers
• Major venues: Outlets in key markets that provide a consistent brand experience
• Derivative presence: Partnerships with other businesses to create unique experiences
• World wide markets: A global presence that ensures accessibility and convenience

9. From Strategy to Decision Making: Being True to Self

To thine own self be true.

The Importance of Self-Knowledge. To be truly authentic, businesses must have a deep understanding of their own identity, values, and purpose. This involves studying their heritage, ascertaining their current positioning, and charting a course for the future that aligns with their core principles.

Here-and-Now Space. The authors introduce the concept of Here-and-Now Space, a framework for understanding the strategic possibilities available to a business based on its heritage and current positioning. This framework helps businesses to identify opportunities that are both achievable and authentic.

The Limits of Possibility. By understanding their limits, businesses can avoid pursuing strategies that are outside of their execution zone and are therefore likely to be perceived as inauthentic. This involves making difficult choices and focusing on areas where they have a genuine competitive advantage.

10. Finding Your Direction: Embrace the Real/Fake Polarity

Authenticity is being true to both your [past] … and your freedom. It’s making choices among possibilities and taking responsibility for your decisions.

The Real/Fake Polarity. The authors propose that the key to rendering authenticity lies in embracing the tension between the real and the fake. This involves understanding the five genres of authenticity and finding ways to juxtapose them in a way that resonates with consumers.

Five Key Polarities:

• [Artificial ↔ Natural]
• [Imitation ↔ Original]
• [Disingenuous ↔ Genuine]
• [Insincere ↔ Sincere]
• [Real ↔ Fake]

The Right Direction for You. By exploring these polarities and finding ways to balance them in their offerings, businesses can create a sense of authenticity that is both compelling and sustainable. This requires a willingness to experiment, take risks, and challenge conventional wisdom.

Last updated: February 28, 2025