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he no longer comes asking for information。 He already has the information。 He comes 
asking for action。〃 
Powell; a former member of the AOL board; also regularly used e…mail to contact other 
foreign ministers and; according to one of his aides; kept 
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up a constant instant…messaging relationship with Britain's foreign secretary; Jack 
Straw; at summit meetings; as if they were a couple of college students。 Thanks to 
the cell phone and wireless technology; said Powell; no foreign minister can run and 
hide from him。 He said he had been looking for Russia's foreign minister the previous 
week。 First he tracked him down on his cell phone in Moscow; then on his cell phone 


in Iceland; and then on his cell phone in Vientiane; Laos。 〃We have everyone's cell 
phone number;〃 said Powell of his fellow foreign ministers。 
The point I take away from all this is that when the world goes flat; hierarchies 
are not being leveled just by little people being able to act big。 They are also being 
leveled by big people being able to act really small … in the sense that they are 
enabled to do many more things on their own。 It really hit me when Powell's junior 
media adviser; a young woman; walked me down from his office and remarked along the 
way that because of e…mail; Powell could get hold of her and her boss at any hour; 
via their BlackBerrys…and did。 
〃I can't get away from the guy;'' she said jokingly of his constant e…mail instructions。 
But in the next breath she added that on the previous weekend; she was shopping at 
the mall with some friends when she got an instant message from Powell asking her 
to do some public affairs task。 〃My friends were all impressed;〃 she said。 〃Little 
me; and I'm talking to the secretary of state!〃 
This is what happens when you move from a vertical (command and control) world to 
a much more horizontal (connect and collaborate) flat world。 Your boss can do his 
job and your job。 He can be secretary of state and his own secretary。 He can give 
you instructions day or night。 So you are never out。 You are always in。 Therefore; 
you are always on。 Bosses; if they are inclined; can collaborate more directly with 
more of their staff than ever before…no matter who they are or where they are in the 
hierarchy。 But staffers will also have to work much harder to be better informed than 
their bosses。 There are a lot more conversations between bosses and staffers today 
that start like this: 〃I know that already! I Googled it myself。 Now what do I do 
about it?〃 
Sort that out。 

Multiple Identity Disorder 
It is not only communities and companies that have multiple identities that will need 
sorting out in a flat world。 So too will individuals。 In a flat world; the tensions 
among our identities as consumers; employees; citizens; taxpayers; and shareholders 
are going to come into sharper and sharper conflict。 
〃In the nineteenth century;〃 said business consultant Michael Hammer; 〃the great 
conflict was between labor and capital。 Now it is between customer and worker; and 
the company is the guy in the middle。 The consumer turns to the company and says; 
'Give me more for less。' And then companies turn to employees and say; 'If we don't 
give them more for less; we are in trouble。 I can't guarantee you a job and a union 
steward can't guarantee you a job; only a customer can。'〃 
The New York Times reported (November 1; 2004) that Wal…Mart spent about 1。3 billion 
of its 256 billion in revenue in 2003 on employee health care; to insure about 537;000 
people; or about 45 percent of its workforce。 Wal…Mart's biggest competitor; though; 
Costco Wholesale; insured 96 percent of its eligible full…time or part…time employees。 
Costco employees become eligible for health insurance after three months working 
full…time or six months working part…time。 At Wal…Mart; most full…time employees have 
to wait six months to become eligible; while part…timers are not eligible for at least 


two years。 According to the Times; full…time employees at Wal…Mart make about 1;200 
per month; or 8 per hour。 Wal…Mart requires employees to cover 33 percent of the 
cost of their benefits; and it plans to reduce that employee contribution to 30 percent。 
Wal…Mart…sponsored health plans have monthly premiums for family coverage ranging 
as high as 264 and out…of…pocket expenses as high as 13;000 in some cases; and such 
medical costs make health coverage unaffordable even for many Wal…Mart employees who 
are covered; the Times said。 
But the same article went on to say this: 〃If there is any place where Wal…Mart's 
labor costs find support; it is Wall Street; where Costco has taken a drubbing from 
analysts who say its labor costs are too high。〃 Wai215 
Mart has taken more fat and friction out than Costco; which has kept more in; because 
it feels a different obligation to its workers。 Costco's pretax profit margin is only 

2。7 percent of revenue; less than half Wal…Mart's margin of 5。5 percent。 
The Wal…Mart shopper in all of us wants the lowest price possible; with all the 
middlemen; fat; and friction removed。 And the Wal…Mart shareholder in us wants 
Wal…Mart to be relentless about removing the fat and friction in its supply chain 
and in its employee benefits packages; in order to fatten the company's profits。 But 
the Wal…Mart worker in us hates the benefits and pay packages that Wal…Mart offers 
its starting employees。 And the Wal…Mart citizen in us knows that because Wal…Mart; 
the biggest company in America; doesn't cover all its employees with health care; 
some of them will just go to the emergency ward of the local hospital and the taxpayers 
will end up picking up the tab。 The Times reported that a survey by Georgia officials 
found that 〃more than 10;000 children of Wal…Mart employees were in the state's health 
program for children at an annual cost of nearly 10 million to taxpayers。〃 Similarly; 
it said; a 〃North Carolina hospital found that 31 percent of 1;900 patients who 
described themselves as Wal…Mart employees were on Medicaid; while an additional 16 
percent had no insurance at all。〃 
In her 2004 book; Selling Women Short: The Landmark Battle for Workers' Rights at 
Wal…Mart; journalist Liza Featherstone followed the huge women's discrimination suit 
against Wal…Mart。 In an interview about the book with Salon。com (November 22; 2004); 
she made the following important point: 〃American taxpayers chip in to pay for many 
full…time Wal…Mart employees because they usually require incremental health 
insurance; public housing; food stamps …there are so many ways in which Wal…Mart 
employees are not able to be self…sufficient。 This is very ironic; because Sam Walton 
is embraced as the American symbol of self…sufficiency。 It is really troubling and 
dishonest that Wal…Mart supports Republican candidates in the way that they do: 80 
percent of their corporate campaign contributions go to Republicans。 But Republicans 
tend not to support the types of public assistance programs that Wal…Mart depends 
on。 If anything; Wal…Mart should be crusading for national 
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health insurance。 They should at least be acknowledging that because they are unable 
to provide these things for their employees; we should have a more general welfare 
state。〃 

As you sort out and weigh your multiple identities…consumer; employee; citizen; 
taxpayer; shareholder…you have to decide: Do you prefer the Wal…Mart approach or the 
Costco approach? This is going to be an important political issue in a flat world: 
Just how flat do you want corporations to be when you factor in all your different 
identities? Because when you take the middleman out of business; when you totally 
flatten your supply chain; you also take a certain element of humanity out of life。 
The same question applies to government。 How flat do you want government to be? How 
much friction would you like to see government remove; through deregulation; to make 
it easier for companies to compete on Planet Flat? 
Said Congressman Rahm Emanuel; an Illinois Democrat who was a senior adviser to 
President Clinton; 〃When I served in the White House; we streamlined the

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