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June 26, 2009

Jack and Suzy Welch's Reality Advertising

Jack and Suzy Welch star in a Microsoft-sponsored, web-based, business reality show. The site is here, but it's too cluttered (I think they were trying to be cool).

I do think this is a great advertising campaign, if the branding fools don't destroy it (by placing too many Microsoft (yawn) pitches in the margins, for example).

Watch the first show below. Jack jumps in and "surfaces" a few issues at Connect by Hertz - a new car-sharing venture. In a way, the fact that Jack pulls these issues out in 5 minutes sorta tells us how out of it Hertz is.

Part 1:

Part 2:

Part 3:

After watching this I get the feeling they don't understand VG's Box1-2-3 strategy for innovation. In fact, they are most likely going to fail. After 30 days, the CEO has still NOT created a global business unit for Griff. Not good. No follow through on commitments.

One more thing. Why doesn't Microsoft bring Jack and Suzy into Microsoft for a few days? They could wake the sleepyheads real fast. Stop one: The Automotive group!

Also, I'd like to see Obama send Jack and Suzy into GM for six weeks. That would sure be a reality show worth watching.

BTW: A quick ecosystem analysis shows that Zipcar is beating them hands down. Rankings: almost 600,000 for Connect by Hertz and 22,000 by Zipcar.

June 24, 2009

John Hagel on "The Big Shift"

John Hagel on CNBC [the video embed code is faulty and doesn't work] >>

Watch the short CNBC video, and come back to read the full report here >>

June 17, 2009

ROI for Democracy: The Value of Twitter

What's the business value of democracy?

Finally, the real value of Twitter revealed>>

“We’ve been struck by the amount of video and eyewitness testimony,” said Jon Williams, the BBC world news editor. “The days when regimes can control the flow of information are over.”

June 11, 2009

Health Care Scare Tactics

Nicholas Kristof's article on the difference between health care in the US and health care in Canada is a must read for everyone.

And it's good to know that the AMA is a crooked organization as well. What did you expect? Medicine is a for-profit business. Anything else is socialism... right?

June 5, 2009

Searching for Godot: Google, Bing and Wolfram Alpha

Congratulations, Microsoft.

Bing is better than Google. There, I said it.

Type in "Godot" and see what I mean.

Wolfram Alpha, on the other hand, is a disaster. The less said, the better.

I can't give up on Google, so for now, my new search engine is GooBing!

June 4, 2009

Intel and Wind River: Shaping Strategy for the Future of the Consumer Experience

The acquisition of Wind River by Intel should not come as a surprise for anyone who has been paying attention to the rapid evolution of the online experience. We know for example that the future of electronics is collaboration, sharing, and access - anytime, anywhere, on any device..

Companies that build a vision around the future and then work to make that future a reality using their business ecosystems will win the next round of competition after we emerge from the recession. Intel's shaping strategy, as my friend John Hagel would call it, is nothing short of brilliant.

Let's see why.

In the automobile "infotainment" world, Intel has been quietly working with Wind River and BMW (and others) to build a shared platform for devices based on open source standards. The ecosystem partners comprise the Genivi Alliance and are in competition with another, smaller ecosystem of partners driven by Microsoft. The difference is that Microsoft's infotainment stack is not open. Ford's Sync and Fiat's Blue & Me products are based on this competing platform. (How long before they switch?)

The ultimate irony - both platforms are built on Intel. And in this case, Intel knows something that Microsoft doesn't - that open systems are the future.

The Wind River platform is not limited to automobiles. They're doing the same across a variety of marketspaces, like the Open Handset Alliance Android - another open source platform.

The Wind River acquisition also helps include "Intel Inside" on all the devices which cloud computing will bring. Intel is making sure that the Telcos, IT hosting providers, hardware and software vendors - everyone gets to use Intel as the foundation of their future business.

Shaping Strategy 101: Intel gets it.

June 2, 2009

Virtual Warfare: China Leads the US

"When the US Department of Defense is the target of no fewer than 128 information infrastructure attacks per minute from China, and we discover that while DoD is almost universally using off-the-shelf Microsoft Windows systems while China is engaged in working toward 100% military deployment of security hardened FreeBSD, it becomes clear that there’s definitely something wrong with US information security policy."

Whoa!

Burger King: "Global Warming is Baloney"

Business stupidity is always a sign of something else more worrisome. Several Burger King franchises in Tennessee have been displaying "Global Warming is Baloney" signs outside their restaurants.

Now that they've decided to speak their minds, how about we speak ours with signs like these:

- "Try our Massive-Coronary-Failure Burger - Buy 1 get 2 Free"
- "No Mad Cows Allowed on Premises"
- "Our Burgers are E-Coli free, or Your Money Back"
- "Our Rats are Sanitized for Your Protection"
- "Our Employees Wash Their Hands after Using the Restroom"

See what I'm getting at?

The franchises are all owned by a company called the Mirabile Investment Corporation (MIC) that owns more than 40 Burger Kings across Tennessee, Arkansas and Mississippi.

Nice going, guys. What next? A "whites-only" sign?

Burger King should yank their licenses. I'm sure they can get some other, more responsible, business owners to take over.

May 31, 2009

John McEnroe: Give Tennis a Chance

The political machinations you find in national sports authorities, whether it's US Track and Field (remember when they denied Carl Lewis a chance for his tenth gold in the relay?) or the USTA - which is hemming and hawing over letting John McEnroe set up a Tennis Academy in New York - are always horrible to watch, and even worse to experience.

It's always gratifying to see people who never played the game at the highest level make big money off the game and mess it over at the same time.

Think Sepp Blatter's FIFA and Samaranch's IOC.

Disasters all around.

So who do we have to bribe to get John McEnroe a shot at giving back to the US tennis community?

Like McEnroe or not, you have to agree he always, always, showed up for the Davis Cup. I remember watching the great Arthur Ashe talk about McEnroe's dedication to the red, white and blue. Let's give him a chance, you guys in the USTA administration. There really isn't anything to lose at this point. Think about it. Who do you want? McEnroe or FEMA's Brownie?

George Lakoff: Empathy, Sotomayor, and Democracy

The attack on empathy is an attack on progressive thinking >>

Israel Doesn't Want Peace...

By building settlements on private Palestinian property, the Israeli government are creating conditions against their long-term interests.

Friends don't let friends drive drunk. That's precisely what President Obama is doing - showing Israel some tough love. Netanyahu knows better, and yet the drunken folly continues.

What are they thinking? What is Israel waiting for? Sanctions?

May 12, 2009

Customer-Driven Innovation: Interview with Gaurav Bhalla

Here's my "Customer-Driven Innovation interview" with Gaurav Bhalla for the Emory Marketing Institute.

According to Bhalla, the key building blocks of value co-creation are:

Listening: learning about consumers' experiences; their angst, frustrations, desires, and aspirations

Sustaining value co-creation conversations:
meaningful conversations that yield the raw material for co-creation

Experimenting and rapid prototyping: to manage risk, improvise, and enable speedy value co-creation

Execution: only when co-created value is delivered can the next round of value co-creation be initiated

Read all about it >>

May 3, 2009

The Heretical Views of Freeman Dyson

Global warming greatly exaggerated?

What's wrong with Freeman Dyson?

Maybe the climate models he's criticizing are off - but perhaps he hasn't seen the pine beetle destruction across North America - all the way from British Columbia to New Mexico. Perhaps he hasn't seen the dry, hot weather across California. Perhaps he hasn't seen the melting Glaciers in Glacier National Park. Perhaps he hasn't seen the mild winters in the Rockies. Perhaps he hasn't gotten out of his air-conditioned office...

This is what happens when you get too smart. I agree with his principal point - that PhDs are, for the most part, a bunch of nerds who are too busy examining parts of the elephant to see the animal itself. I even agree that we are not spending enough time working on poverty, infectious diseases, public education and public health. But to say that global warming is somehow less important misses the entire point. Of course they are all related. Of course we have to become radically more serious about sustainable development. But too say something this absurd? Really.

Here's where I do find myself agreeing with him:

I say the United States has less than a century left of its turn as top nation. Since the modern nation-state was invented, about the year 1500, a succession of countries have taken turns as top nation. First it was Spain, then France, then and Britain, than America. Each term lasted about 150 years. Ours began in 1920 so it should end about 2070.

I agree with his analysis as well:

The reason why each top nation's term comes to an end is that the top nation becomes overextended militarily, economically and politically. Greater and greater efforts are required to maintain the number one position. Finally, the overextension becomes so extreme that the whole structure collapses. Already we can see in the American posture today some clear symptoms of overextension.

But here's where he's missed the boat: the two are connected. If the United States decides to re-invent itself as a sustainable economy, it will lead for another 200 years, period. That is what Obama and Gore have figured out already, but somehow, this smart heretic has not connected the dots.

April 30, 2009

Byron Katie: Challenging Your Assumptions

The Work of Byron Katie can be used as a tool to challenge business assumptions.

Here, on Byron Katie's blog we find the following business inquiry: "Having More Customers Means Having More Profits" in which a biz-dev manager starts questioning his team's belief that "more customers equals more profit."

The process is described as business inquiry.

Here are the manager's conclusions:

"Having fewer customers means having more profit."

"One, we could focus on the customers that have the strongest cash positions, the ones who are most likely to weather the recession.

"Two, we could stop wasting time on difficult customers, the ones that keep changing their orders. They're very high maintenance, but we keep them because we think we need them to meet our numbers.

"And three, we could stop serving customers that don't pay in a timely manner, the ones with poor payment history."

More at Byron Katie's blog >>

April 28, 2009

Swine Flu Updates: How Twitter Makes a Difference (UPDATED)

UPDATED: HealthMap from Google.org and the CDC >>

I have to say I'm not impressed by the swine-flu coverage in the traditional media.

What's interesting is that one company - Veratect - has done a better job of identifying, elevating, and monitoring this crisis.

Their swine-flu Twitter feed is here. Judge for yourself. >>

Other good sources include the CDC and Google News, and the Flu Wiki...

Photos here >>

Background: the politics of health >>

April 25, 2009

Will Hunger Disrupt Civilization?

The biggest threat to global stability is the potential for food crises in poor countries to cause government collapse.

Read all about it in Scientific American >>

April 17, 2009

Knowledge Kinetics: Customer Value Innovation

Gaurav Bhalla's latest company Knowledge Kinetics is all about getting your customers involved in value creation.

Their "Listen, Engage, Respond" solution methodology shows you how to transform your marketing (and your company).

And don't forget to check out Gaurav Bhalla's blog.

April 10, 2009

Backlash: How Early Adopters React When the Mass Market Embraces a New Brand

David Reibstein's theory holds true online as well. Let's look at an example of how this works with online communities, knowledge - based communities in particular. Let's say we build an online community around a specific topic. When the site starts up, we attract the early adopters - some of them thought leaders in their fields. The posts, articles, and debates are generally led by a handful of these thinkers, and they attract a following. The newbies, as they engage with the community start off by learning, asking questions, sometimes just lurking. The quality of these early debates is typically high and participation intense and invigorating.

So what happens when the community suddenly experiences growth - massive numbers of the hoi-pollloi descend on the site and suddenly the quality of discussions takes on a Twitter-like feel - stupid and stupider. The old school rebels, first through silence, and second by disengaging. This takeover by the wisdom of the masses can be avoided, through ruthless editorial direction and skilled moderators. And every once in while, the new participants challenge assumptions that deserve to be challenged, and are given their space in the sun.

So how do we manage this growth and stay true to the community's intent?

Three options come to my mind:

1) Manage membership - simply keep the community at growing in a measured way - firing the "bottom" 10% each year, and bringing in a fresh crop of participants at 20%... This is the surest way to sustainable growth.

2) Create a merit-based aristocacy - with tiered membership based on the value of the participant's contributions.

3) Create a feeder community which is built for the masses and an elite community for the thought leaders and their followers. Moderate the interaction between these groups with the possibility of upward migration based on peer-based invitations.

You'll notice I am not advocating open communities where everyone has an equal voice. That's because I'm not talking about social communities, but communities of practice where respect is reserved for the competent.

April 7, 2009

Axel Springer: Thriving in a Dying Industry - Newspapers!

While newspapers and print outfits are losing their shirts all around us, the German company Axel Springer recently reported its "highest net income since the company was founded" 62 years ago.

How is this possible?

What are they doing that our friends at the NY Times aren't?

From the NYTimes:

Axel Springer generates 14 percent of its revenue online, more than most American newspapers, even though the markets in which it operates — primarily Germany and Eastern Europe — are less digitally developed than the United States.

One reason, Mr. Döpfner said, is that Axel Springer has dared to compete with itself. Instead of trying to protect existing publications, it acquired or created new ones, some of which distribute the same content to different audiences.

At one newsroom in Berlin, for example, journalists produce content for six publications: the national newspaper Die Welt, its Sunday edition and a tabloid version aimed at younger readers; a local paper called Berliner Morgenpost, and two Web sites.

Though advertising has slumped in Germany, Axel Springer has been able to offset the shortfall by raising the price of publications like Bild, which sells more than three million copies. Now Axel Springer is looking for “undervalued assets” to buy.

Mr. Döpfner said the company would even have a look in the United States “if a meaningful position arises in a significant market.”

OK. So what are newspapers in this country going to do? Stay tuned.

April 3, 2009

Obama Restoring Brand America

April 2, 2009

The End of Mexico?

This isn't funny at all.

And once Mexico falls, we're next.

April 1, 2009

The Economist: April Fools in Econoland

The Economist's Econoland beats Google's Caddie.

March 30, 2009

How to Use YouTube for Market Research

Have you ever used YouTube's "Insights: Statistics and Data" feature?

It's a remarkable tool for effective market research in real time.

Let me walk you through how I use it to:

- test new product ideas
- learn what customers like right now
- deduce where events should be held
- learn exactly which portion of a video clip grabs audience attention
- see which topics get customers engaged and why
- learn the exact demographic profile for each product

The first thing to do is create a separate video for each product or idea you are interested in selling. If you're selling an information product - like a video or an audio, simply use a short excerpt. Keep it under five minutes. Three minutes is optimal. Upload your clips, make them visible to the public, and watch the fun begin.

In a few days or when you get to over a thousand views, it's time to check your YouTube Insights.

Here's what YouTube gives you:

stats

This summary of your results:

(1) Tells you how many views your videos are getting. This will tell you if you're getting any attention at all.

(2) Shows you which video is getting the most attention. Now you know what your prospects like - and the margin between what's getting attention and what's not.

(3) Expose your real demographics. Not too fancy, but you get to see the age range your product resonates with. Every now and then I'm surprised.

(4) Identifies the regions where you are getting traction. Again, results do vary by geographic location, so you can decide if you want to spend some money to gain exposure in a particular country or state, for that matter, or if you want to focus on your natural geography - the places in which you're getting organic attention.

Now let's go further:

stats

(1) View your traffic over time - days, months, a year.

(2) Sort video popularity by region - again, a handy guide to what the reaction is to your message... country by country.

(3) Details on which videos are winners and which are not. Based on this you can decide which product merits backing, and which ones need more work.

stats

(1), (2) and (3) Which videos are getting the most traffic and from where...

stats

(1), (2) and (3) Which countries (or states) are most receptive to your work!

stats

(1) gives you the age breakdown for your products. Is it senior women or adolescent boys?

stast

(1), (2) and (3) tell you which products get the most response from your prospects - positive or negative. Let's you know early on if you need to go back to the drawing board. A quick measure of engagement.

stat

Probably the most powerful piece of information, this tells you the level of attention - the peaks and valleys - for your work. Use it to optimize your messaging. Now you too can be a Frank Luntz (just don't go over to the dark side).

All of this information costs nothing. And from my experience, the quality of results can't be matched easily, not even by expensive focus groups!

March 29, 2009

The Tata Nano: The Rise of Ascetic Engineering

Is Ratan Tata the re-incarnation of Henry Ford?

Suddenly, innovation takes a front seat in the automotive world. And it happens to be led by an Indian engineering sensibility: frugal enough to do the job. This is the type of value-engineering that shifts the mindset of an entire industry:

13 iPod Nanos = 1 Tata Nano. Which Nano do you want?

Congratulations, Ratan Tata and the Tata Motors team of engineers. Brilliant!

March 17, 2009

Cloud Storage Strategy

The Cloud will change the way you live. Everything as a service: your computing, your desktop, your life.

One of the things I like about my job is I learn about cutting edge stuff, like customer-driven innovation, intuitive intelligence, and now cloud storage strategy.

We launched the cloud storage strategy site a few days ago, and now it's simply a matter of keeping up with ideas. The Economist for example, in their global entrepreneurship survey, tells us that:

The development of “cloud computing” is giving small outfits yet more opportunity to enjoy the advantages of big organisations with none of the sunk costs. People running small businesses, whether they are in their own offices or in a hotel half-way round the world, can use personal computers or laptops to gain access to sophisticated business services.

Now that's what we're talking about!

World of Ends: Another Manifesto from Doc Searls and David Weinberger

The Cluetrain posse continues their journey:

1. The Internet isn't complicated
2. The Internet isn't a thing. It's an agreement.
3. The Internet is stupid.
4. Adding value to the Internet lowers its value.
5. All the Internet's value grows on its edges.
6. Money moves to the suburbs.
7. The end of the world? Nah, the world of ends.
8. The Internet's three virtues:
a. No one owns it
b. Everyone can use it
c. Anyone can improve it
9. If the Internet is so simple, why have so many been so boneheaded about it?
10. Some mistakes we can stop making already

Details >>

March 16, 2009

Pricing in a Recession: Customer Segmentation based on Decision-Making Attributes

Now that we've learned that customer segmentation is important on your website, let's look at customer segmentation and pricing. When companies make sweeping, "across the board" cuts in pricing, they basically shoot themselves in the head. A smarter approach is to segment your customers by understanding their decision-making attributes, and then price accordingly.

Here, Oliver Wyman tells us how "market pricing" is done:

segmentdecisionmaking.gif

On the flip side, I wonder if companies do the same thing with employee pay - i.e. segment their employees based on performance and individualized intrinsic motivations and then give them what encourages them the most.

And of course, it's not all about money. Unless you're at AIG.

What Happened to Forrester Research?

It looks like Forrester Research has gone off the deep end. Either that, or their website designers aren't reading their own reports. Like the ones on creating personas for the audience that visits your site...

forresteraudience.jpg
Apparently these are the types of people who are visiting the Forrester website these days. Note the sour faces, forced smiles, and abject hand wringing - a definite sign that the recession is taking hold...

P.S. Instead of spending money on inauthentic website design, Forrester should've just spent the money and hung on to Charlene Li. Too bad.

March 6, 2009

Masao Nemoto: Is Your Culture Hurting Competitiveness?

A former senior managing director of Toyota Motor Corporation and renowned leader of their famous manufacturing system, Masao Nemoto is known throughout the world as a leader in quality control and process optimization. In a sense, he is one of the principal architects of the "Toyota Way."

What we learn from Nemoto is far more than quality management. His ideas on leadership have been documented, and reveal the profound knowledge Nemoto infused into the day-to-day operations at Toyota.

One particular aspect of Nemoto's thinking has been largely ignored by western companies to their own detriment: coordination between business units.

Nemoto insisted on a culture of shared responsibility. Here's what Nemoto says:

"One of the most important functions of a division manager is to improve coordination between his own division and other divisions. If you cannot handle this task, please go to work for an American company." (see his 10 leadership principles below)

Nemoto believed that critical tasks could not be left to a single business unit, but rather should be a collective responsibility.

What has this got to do with leadership?

Nemoto's point of view says that leaders must lead across the company, not just their own fiefdom. It is ironic, to say the least, that the democratization of business happened first not in the West, but in Japan, at companies like Toyota. Or in Brazil, with Semco.

Note: OK, there are a few American companies in this camp as well: Zappos and W. L. Gore & Associates...

Nemoto's thinking went all the down to the individual worker on the assembly line. Everyone speaks, insists Nemoto, not just management. A direct result of this view is the work principle: problems must be solved at the lowest possible level. All employees take responsibility for problem solving, instead of pushing the issue upwards. Every worker in a process can be stop the work flow, without waiting for a supervisor to make the decision. It is this transparency which drives out defects and makes quality job one. Now wasn't that a slogan we heard somewhere before?

Next time you bring your business unit heads around the conference table, ask yourself: "Are we competing against each other or against the competition?"

For reference, here are Nemoto's 10 leadership principles:

1. Improvement after improvement. Managers should look continually for ways to improve the work of their employees. Advance is a gradual, incremental process. They should create all atmosphere conducive to improvements by others.

2. Coordinate between divisions. Managers of individual divisions, departments, or subsidiaries must share responsibility. Nemoto offers this advice to his managers:

One of the most important functions of a division manager is to improve coordination between his own division and other divisions. If you cannot handle this task, please go to work for an American company. A corollary of this is that upper management should not assign important
tasks to only one division.

3. Everyone speaks. This rule guides supervisors of quality circles at Toyota, ensuring participation and learning by all members. It has also been generalized to all meetings and the annual planning process. By hearing everyone's view, upper management can create realistic plans that have the support of those who must implement them--an essential element in quality programs.

4. Do not scold. An alien concept to most managers. At Toyota the policy is for superiors to avoid giving criticism and threatening punitive measures when mistakes are made. This is the only way to ensure that mistakes will be reported immediately and fully so that the root causes (in policies and processes) can be identified and amended. Assigning blame to the reporter clearly discourages reporting of mistakes and makes it harder to find the underlying cause of a mistake, but it is difficult to train managers to take this approach.

5. Make sure others understand your work. An emphasis on teaching and presentation skills is important because of the need for collaboration. At Toyota, managers are expected to develop their presentation skills and to teach associates about their work so that collaborations will be fuller and more effective.

6. Send the best employees out for rotation. Toyota has a rotation policy to
train employees. There is a strong tendency for managers to keep their best employees from rotation. But the company benefits most in the long run by training its best employees.

7. A command without a deadline is not a command. This rule is used to
ensure that managers always give a deadline or schedule for work. Employees are instructed to ignore requests that are not accompanied by a deadline. The rationale is that without a deadline, tasks are far less likely to be completed.

8. Rehearsal is an ideal occasion for training. Managers and supervisors give numerous presentations and reports. In a QC program there are frequent progress reports. Mr. Nemoto encourages managers to focus on the rehearsal of reports and presentations, and to require that they be rehearsed. Rehearsal time is used to teach presentation skills and to explore problems or lack of understanding of the topic. Because it is informal, rehearsal time is better for learning.

9. Inspection is a failure unless top management takes action. The idea
behind this is that management must prescribe specific remedies whenever a problem is observed or reported. Delegating this task (i.e., by saving "shape up" or "do your best to solve this problem") is ineffective. So is failing to take any action once a problem is defined.

10. Ask subordinates, "What can I do for you?" At Toyota this is called "creating an opportunity to be heard at the top." In the first year of a quality-control program, managers hold meetings in which employees brief them about progress.

Three rules guide these informal meetings:
1. Do not postpone the meetings or subordinates will think their project is not taken seriously.
2. Listen to the process, not just the results, since QCs focus in on the process.
3. Ask the presenters whether you can do anything for them. If they ask for help, be sure to act on the request.

This philosophy can be generalized. If top management is perceived as willing to help with problems, employees are more optimistic about tackling the problems and will take management's goals more seriously.

While reading these principles of Nemoto, I couldn't help but be reminded of good old Deming.

March 5, 2009

From Drucker to Immelt: Developing Leaders for Tomorrow

Peter Drucker used to say that management development must be dynamic, that is to say it should not aim to replace today’s management, but rather must focus on the future - the “needs of tomorrow,” as he called it.

In this context, Drucker asks us to think about the following:

- What organizations will be needed to attain the objectives of tomorrow?

- What management jobs will that require?

- What qualifications will managers have to have to be equalto the demands of tomorrow?

- What additional skills will they have to acquire?

- What knowledge and ability will they have to possess?

The answer to these questions will help us define your companies future leaders – the men and women who will create your company’s future, the world’s future.

Fast forward to the June 2006 Harvard Business Review. In a revealing interview, General Electric’s Jeffrey Immelt tells Tom Stewart that GE has defined five growth traits for all of GE’s leaders. In their quest to become growth oriented (the target is to sustain an 8% rate of organic growth), Immelt tells us they had to change some of their DNA.

Here are the 5 traits of GE’s growth leaders:

1. External focus

2. Imagination and creativity

3. Clear thinking and decisiveness

4. Inclusiveness

5. Deep domain expertise

As part of the annual HR review at GE, executives are rated green, yellow, or red on each one.

Immelt tells us that everyone has to have at least one red, because the point is not to pick out winners or losers, but rather to show that everyone (Immelt included) is working on one of these areas.

Interestingly, Immelt tells us the area he’s working on is - decisiveness.

Google in the White House? Will Vivek Kundra transform the Federalist CIO Bureaucracy?

The White House announced this morning that Vivek Kundra will be the administration's Chief Information Officer.

It won't be easy, since our government IT is basically a patchwork of competing departments (fiefdoms) and vendors (mercenaries) and CIOs (the entrenched aristocracy).

Here's Kundra talking about his previous position:

'

Steve Ballmer's probably having a fit over at MS right now. Here's his Howard Dean moment.

So what can we expect from Kundra? Three things to look for:

1) Transparency: of costs and just as important, procurement processes
2) Lower costs: through the use of open apps like Google Apps
3) Virtualization: everything in the cloud...

And who is Obama going to bring in as Chief Technology Officer (CTO)? I'd like to see JSB, but I'm getting this "Google in the White House" feeling, i.e. Eric Schmidt...

March 4, 2009

The Corporate Memo – Lessons Learned from P&G

In the history of business, Procter and Gamble will be remembered for many things- its products, its branding acumen, and its memos.

Memos? Those boring treatises that no one reads, you ask.

Wrong.

An account executive who worked closely with P&G had this to say about the importance of the memo at the company:

“P&G seems to have figured out that if you structure information certain ways, people will readily understand it, good ideas will emerge, and bad ideas will be exposed. I really think that is what has made them so successful. They make fewer mistakes because they find mistakes before they happen.”

In a book which is still relevant today - Winning With the P&G 99 - Charles Decker tells us that if you can learn to write a P&G memo, you can learn how to think. The memo becomes a knowledge codification tool, a way to present ideas, arguments, and recommendations in a language and style everyone at P&G understands.

Think about how effective this is. In most companies, the quality of communications depends on the writer. Every department, every individual speaks and writes in their own language. At P&G, the language and style is the same everywhere. What is original is the idea in the memo.

Dr. Andrew Abela tells us (on his blog) that when he joined P&G twenty years ago, the one page memo discipline was in full force. He shows us the format:

1.The Idea. What are you proposing? This is typically one sentence.

2. Background. What conditions have arisen that led you to this recommendation? Only include information that everyone agrees upon in the Background - this is the basis for discussion, so it needs to be non-debatable.

3. How it Works. The details. In addition to How, also What, Who, When, Where.

4. Key Benefits. This is the "Why?" There are usually three benefits: the recommended action is on strategy, already proven (e.g. in test market or in another business unit), and will be profitable. You can think of these three in terms of the old Total Quality mantra of "doing right things right." The first (on strategy) means you're doing the right thing. The second and third mean you're doing things the right way, because you're being effective (proven to work) and efficient (profitable).

5. Next Steps. Who has to do what and by when for this to happen?

Simple enough. So why don’t you adopt this for your company? And better still, why not use this format for all your company meetings as well.

Looking back, it’s easy to see that P&G made memo writing a critical knowledge management process, or even more importantly, a decision-making process.

The process itself has created a framework for critical thinking, for decision-making and ultimately for strategic advantage.

March 2, 2009

Globalization and Corporate Taxes

If corporations want to be treated like persons, then they will have to pay their taxes like normal people. That's just another founding principle in the ongoing war on corporatism.

If I go work overseas, I still have to pay US taxes - as long as I'm a US citizen. So why should the corporations be any different?

The tax experts may question this line of thinking, but let's remember who pays them.

The Hindu has an article on the issue which seems fair and balanced.

Of course, more and more companies are choosing to move to Dubai, where, under a dicatator, they enjoy more freedoms than here in the US. More on Halliburton and KBR here>>

Who needs democracy when you can have bigger profits instead?

It's all about the size and share of the pie...

Funny thing, Dubai is not weathering the global financial as well as might be expected. Many of these offshore companies will come back or disappear. No bails-outs for them! Good luck Dubai.

For individual tax dodgers, watch the weasels squirm as Swiss bank accounts become more transparent. First Switzerland, then Panama and Singapore.

What's my point in all this raving? Pretty simple really: businesses and individuals have a responsibility to all their constituents, not just shareholders. And the sooner they wake up to that reality, the sooner they will truly become "good citizens of the world." It's capitalism 2.0 versus police state 2.0 - which do you prefer?

February 28, 2009

The Business Value of Bedtime Stories

Once upon a time, my pet lion (who lived in the attic) started practicing customer-driven innovation. But then he began to challenge his assumptions and now he won't listen to anything I say.

My 8-year old daughter told me this story last night before she fell asleep.

I've really got to start going down to the office when I take those work calls...

February 24, 2009

Coming Soon: My Ecosystem Strategy Book

I think I spend too much time doodling and not enough writing.

ecosysbook.gif

I hereby resolve to get this book thing done once and for all.

February 22, 2009

Gary Hamel: Moonlight Madness or Management Moonshots?

Gary Hamel's at it again.

This time he's got 25 moonshots for management:

1. Ensure that management's work serves a higher purpose. Management, both in theory and practice, must orient itself to the achievement of noble, socially significant goals.

2. Fully embed the ideas of community and citizenship in management systems. There's a need for processes and practices that reflect the interdependence of all stakeholder groups.

3. Reconstruct management's philosophical foundations. To build organizations that are more than merely efficient, we will need to draw lessons from such fields as biology and theology, and from such concepts as democracies and markets.

4. Eliminate the pathologies of formal hierarchy. There are advantages to natural hierarchies, where power flows up from the bottom and leaders emerge instead of being appointed.

5. Reduce fear and increase trust. Mistrust and fear are toxic to innovation and engagement and must be wrung out of tomorrow's management systems.

6. Reinvent the means of control. To transcend the discipline-versus-freedom trade-off, control systems will have to encourage control from within rather than constraints from without.

7. Redefine the work of leadership. The notion of the leader as a heroic decision maker is untenable. Leaders must be recast as social-systems architects who enable innovation and collaboration.

8. Expand and exploit diversity. We must create a management system that values diversity, disagreement, and divergence as much as conformance, consensus, and cohesion.

9. Reinvent strategy-making as an emergent process. In a turbulent world, strategy making must reflect the biological principles of variety, selection, and retention.

10. De-structure and disaggregate the organization. To become more adaptable and innovative, large entities must be disaggregated into smaller, more malleable units.

11. Dramatically reduce the pull of the past. Existing management systems often mindlessly reinforce the status quo. In the future, they must facilitate innovation and change.

12. Share the work of setting direction. To engender commitment, the responsibility for goal setting must be distributed through a process where share of voice is a function of insight, not power.

13. Develop holistic performance measures. Existing performance metrics must be recast, since they give inadequate attention to the critical human capabilities that drive success in the creative economy.

14. Stretch executive time frames and perspectives. Discover alternatives to compensation and reward systems that encourage managers to sacrifice long-term goals for short-term gains.

15. Create a democracy of information. Companies need holographic information systems that equip every employee to act in the interests of the entire enterprise.

16. Empower the renegades and disarm the reactionaries. Management systems must give more power to employees whose emotional equity is invested in the future rather than in the past.

17. Expand the scope of employee autonomy. Management systems must be redesigned to facilitate grassroots initiatives and local experimentation.

18. Create internal markets for ideas, talent, and resources. Markets are better than hierarchies at allocating resources, and companies' resource allocation processes need to reflect this fact.

19. Depoliticize decision-making. Decision processes must be free of positional biases and should exploit the collective wisdom of the entire organization.

20. Better optimize trade-offs. Management systems tend to force either-or choices. What's needed are hybrid systems that subtly optimize key trade-offs.

21. Further unleash human imagination. Much is known about what engenders human creativity. This knowledge must be better applied in the design of management systems.

22. Enable communities of passion. To maximize employee engagement, management systems must facilitate the formation of self-defining communities of passion.

23. Retool management for an open world. Value-creating networks often transcend the company's boundaries and render traditional power-based management tools ineffective. New management tools are needed for building complex ecosystems.

24. Humanize the language and practice of business. Tomorrow's management systems must give as much credence to such timeless human ideals as beauty, justice and community as they do to the traditional goals of efficiency, advantage, and profit.

25. Retrain managerial minds. Managers' traditional deductive and analytical skills must be complemented by conceptual and systems-thinking skills.

Fine. I think I get it. The real question is how many of our bail-out CEOs will get this Capitalism 2.0?

February 17, 2009

Can Brand America Regain its Shine?

brandamerica.gif

The Economist is having a fun debate over the future of the United States.

My opinion: a three word cliche: Yes We Can!

Obama is, in so many ways, more than just a symbol of our rebirth. I'd say he has brought 80% of the country together and the world as well. Heck, even Pat Robertson sees the light (for a few seconds at least).

February 16, 2009

Ted Sorensen on The Power of Words

Take notes, everybody:

Part 1:

Part 2:

Part 3:

Part 4:

The Truth about Executive Pay

There's a line of reasoning being echoed in the Obama administration that if we cap CEO pay for bailed-out companies in the financial markets, the best and brightest will leave, seeking greener pastures with foreign companies which don't have similar restrictions.

This is false reasoning.

Executive pay must be tied to long-term performance if anything is going to change. Here's some thinking on the issue from Stephen F. O’Byrne and S. David Young in HBR:

The justification for maintaining pay competitiveness is that it reduces the risk of losing good managers, who could be costly to replace. Corporate boards could also argue that it minimizes the risk of seriously overpaying managers as a consequence of large, windfall gains from surging share prices. In short, the claim is that competitive pay policies not only help lower retention risk but also impose limits on shareholder cost. This is false logic. By causing companies to overpay underperforming managers and underpay star performers, a competitive pay policy will actually increase retention risk. The poor performers stay on and the good ones go. What’s more, it ignores the potential wealth-creating effects of strong financial incentives.

Despite their commitment to competitive pay policies, compensation committees sometimes do act to strengthen incentives by increasing option grant shares after a year of strong stock-price performance or decreasing them after a bad year. On the surface, this appears to be good news. But such moves have little overall impact because directors tend to reverse their actions in the following year. In other words, an option grant that rewards good performance or penalizes poor performance is followed, almost half the time, by a grant that penalizes good performance or rewards poor performance. On balance, therefore, ad hoc adjustments by boards contribute almost nothing to wealth leverage.

If companies are serious about rewarding performance and retaining star performers, they will first have to wean themselves off competitive pay. They should give managers fixed-share interests in stock appreciation and economic profit improvement, thereby increasing the impact of future pay on executive wealth. Perhaps most important, they need to review vesting and holding requirements to prevent managers from unilaterally cashing out share-based pay, which also reduces the sensitivity of their wealth to company value.

Secondly, we know the financial sector is grossly overpaid. Even the Chinese will tell you this. I blogged earlier about China's Gao Xiqing, president of the China Investment Corporation:

- "If you look at every one of these [derivative] products, they make sense. But in aggregate, they are bullshit. They are crap. They serve to cheat people.

- "I have to say it: you have to do something about pay in the financial system. People in this field have way too much money. And this is not right."

He's not mincing words, and neither is the Economist >>

I say let them go. It's time these executives we came back to Earth. If they want to risk their own money great, but why should we subsidize irresponsible management practices?

I'm with Warren Buffet when he says in this letter:

"CEO perks at one company are quickly copied elsewhere. “All the other kids have one” may seem a thought too juvenile to use as a rationale in the boardroom. But consultants employ precisely this argument, phrased more elegantly of course, when they make recommendations to comp committees.

Irrational and excessive comp practices will not be materially changed by disclosure or by “independent” comp committee members. Indeed, I think it’s likely that the reason I was rejected for service on so many comp committees was that I was regarded as too independent. Compensation reform will only occur if the largest institutional shareholders – it would only take a few – demand a fresh look at the whole system. The consultants’ present drill of deftly selecting “peer” companies to compare with their clients will only perpetuate present excesses."

No one is saying we should stop paying for performance. What we're saying is let's stop rewarding unsustainable business practices and outright fraud.

Where are we going to find low-cost, competent CEOs? That's a business GE should look into. A CEO-for-Hire profit center. Training grounds? India and China, of course.

February 13, 2009

Cut Capital Expenditures, Not People

When executives want to boost profitability, their first target is often their "most valuable asset" (ha!) - people. But a better way to find value is to bring increased discipline to the capital budgeting process for small items.

Check out Tom Copeland's 2000 article in HBR - Cutting Costs Without Drawing Blood.

Here's what he says:

... a company can almost always create far more sustainable value by sensibly reducing its capital expenditures. How? Not by postponing or eliminating big spending projects, which are usually less than 20% of the budget anyway, but by conducting a rigorous, disciplined evaluation of the small-ticket items that usually get rubber-stamped. Those “little” requests often prove to be unnecessary—in some cases they duplicate other requests—or gold plated. But few managers have the time, energy, or inclination to ask about them. They should.

and:

You get more bang for the buck—or perhaps more buck for the bang—by cutting capex dollars than by cutting payroll. According to my estimates, the increased market valuation that resulted from Kodak’s $400 million payroll cuts could have been achieved by a $280 million reduction in capital spending. The reason for the difference, of course, is that a company has to make severance payments—$600 million in Kodak’s case—to people it has laid off. (There is no severance pay for capital.) The table compares recent payroll savings at Kodak and several other corporations with my estimated value-equivalent capex cuts.

Something to think about very, very carefully.

Rosabeth Moss Kanter on Simplicity

Rosabeth Moss Kanter is one of my favorite business gurus, the "female Peter Drucker," as I tell people when I recommend they read her book Confidence: How Winning Streaks and Losing Streaks Begin and End.

In her latest blog post at HBR, she tells us that the next big trend is simple: to simplify.

Among her observations:

"Companies sow the seeds of their own decline in adding too many things -- product variations, business units, independent subsidiaries -- without integrating them. They create complexity, which makes costs increase faster than the potential gains from the new parts.

"Just why did General Motors need 47 brands of cars? Was that responsible for its top-heavy load of managers? Or for cannibalization within the company?"

and this brilliant line:

"When everyone else suffers from over-complexity, there is a market for products and services that simplify life."

More here >>

Business Models for Short Attention Spans

I wrote once on another blog, that no one has time to read Harvard Business Review, or listen to an entire music CD, or watch the whole movie.

Our attention span is somewhere between 3 to 5 minutes. And that’s the size your idea-bite has to be if you’re going get heard at all. See Twitter, YouTube, CNN, et. al. We're getting dumber second by second by second.

How do you build a business model for short attention spans? I think this is the key challenge for online publications - from newspapers, to blogs, to forums. Perhaps the key is enticing readers to return over and over - let's say twenty times a day! So online journals must be updated very often (compare HuffPost with the NYTimes) with corresponding micro-blogging on the same topics.

And the revenue will come not for selling ads, but selling products and services. And sometimes, you may just sell them the longer version of your story.

Starting a Business in a Recession

As someone who has started a business in a down economy, I have to say it is not as easy as these articles (see below) make it out to be.

For starters, this is not the time to write a business plan, as some of them would have you do. Instead, focus on finding and keeping customers.

Two, get ready to answer these questions from your customers, er, prospects:

- Who are you?
- What can you do for me?
- Why should I believe you?
- How soon can you make a difference to my bottom line?

- Starting a Business in a Downturn - BusinessWeek

- Strategies: It’s a good time to start a business - USA Today

- How to Start a Business During a Recession - eHow

- Starting Up in a Down Economy - Inc.

- Five reasons why a recession is a good time to start a company - The Industry Standard

What's a good business to start now? Something you're good at, crazy about. Something people call you about to get free advice on. Something you want to do for the rest of your life.

Can't think of anything yet? Here are some fun new business ideas, 999 of them to be precise...

If you already have an ongoing business, here are some things to do now >>

Cartoon: The Republican Vision for America

noodleman

Is the US repeating Japan's mistakes?

Looks like the Japanese know something we need to pay attention to in this country.

Nicholas Kristoff has an opinion: see "Escaping the bust bowl" >>

Indian Innovation: Distributed R&D

The points raised by Anil Gupta and Haiyan Wang in their book - Getting China and India Right: Strategies for Leveraging the World's Fastest Growing Economies for Global Advantage are echoed in this BusinessWeek article by Gunjan Bagla and Atul Goel.

So are things slowing down with the global recession? Here's what they say:

We believe there may be a temporary hiccup in R&D globalization, caused primarily by companies freezing in their tracks as they reassess the new financial realities. But as soon as they rebuild their product road maps, nimble companies will actually accelerate their globalization efforts, pushed harder by tight budgets and the realization that the old ways can be disastrous.

Next up: What's up with Dubai?

February 11, 2009

Brand Promises: What to Do Now

The one thing we all know as branding professionals is the axiomatic statement: "your brand is your promise." When you start breaking that promise, you lose brand equity.

That's been the story for so many brands, from Sears to the Republicans.

So what can you do in these turbulent times?

Step one: don't lie. To yourself, your employees, and most of all to your customers.

Step two: think 80/20: focus on the 20% percent of actions which give you 80% of your returns. In other words, work on your effectiveness. Don't try to do too many things at once. But focus on your best customers and more importantly, your best employees. Fire the deadwood - beginning with deadwood customers - the ones that cost a lot to service and are just not worth it.

Step three: observe your customers' pains. How can you help them? Can you show them something they might not have known? Can you help them bring in additional revenues? Pitch in and they'll never forget you.

Step four: invest in the future. Sure, things look bleak. But now there are more opportunities in your market and if you look closely at your adjacent markets, you should be able to see the opportunities.

Step five: service counts. The better your employees do in face-to-face encounters, the better you'll weather the storm. Where can your service delivery be redesigned to make it even better.

Step six: be true to your brand. Don't just start accepting anything you need to do to survive. Focus on customer value, not price competition.

Step seven: customer driven innovation. It's now or never time. Get an innovator's mindset.

Step eight: use the Internet like your life depends on it. Because it does. I don't care what industry you're in, the Internet will help you reduce your costs - marketing costs, operational costs, employee costs, and, most importantly, it can help you grow.

Step nine: test your ideas. Now is the time for smart business experiments.

The sky is not falling, despite what the papers say. Yes, you might lose your job, but you can find another one. This isn't Europe. So get busy!

February 9, 2009

Newsweek: Shrinking to Survive?

Will Newsweek be able to compete against the Economist?

That's what they're betting on, apparently.

The goal is to turn Newsweek into an opinion-based "thought leader" with branded journalists like Fareed Zakaria, Christopher Hitchens, and that fossil of a conservative, George Will. So we'll see lots more trash-talking and provocation.

While this is a step in the right direction, I think they'll really have to worry about low-cost, online disruptors like HuffPost, DailyKos, and The Week, as well as established institutions like The Atlantic and The New Yorker.

The makeover is supposed to gain them mindshare and, ahem, walletshare. Where have we heard that before?

What they're missing is a daily view of their ecosystem. I'll get into that in a separate entry on ecosystemwatch.com. And as I tell my clients, thought-leaders do dominate in ecosystem competition, so the Newsweek strategy does make sense.

What I don't see any mention of is value-co-creation with its readers. And their revenue model is still based on advertising. Even the Economist knows that to make money you've got to sell those country reports, the surveys, books, and conferences.

Finally, I hope they've thought about video - online video - as another key ingredient which makes online news attention-worthy.

February 8, 2009

Ripples in the Indian Blogosphere: L.K. Advani versus Amitabh Bachhan

In India, we see L.K. Advani from the opposition fundamentalist BJP party try his hand at blogging. While I wonder, if at his age he's ever used a computer, the posts are somewhat entertaining. For example he talks about why democracy has taken root in India, but not in Pakistan - and uses the words of the late Benazir Bhutto to make his point.

According to Bhutto: “I attribute your country’s success to two factors: firstly, your Army is apolitical; and secondly, your Election Commission is constitutionally independent of the Executive.”

No kidding.

Too bad the BJP doesn't care too much about apolitical anything; they're the ones that have sought to divide India by religion, and I believe that, by definition, is a great disservice to India's cultural heritage. Sort of like the Taliban destroying Buddhist statues in Afghanisthan, but not on the same scale of intolerance.

In terms of influence, however, I'd say Bollywood (or should we call that Mollywood?) icon Amitabh Bachchan's blog, corny as it is, has more of an impact across the Indian world - from Mumbai to San Francisco. I just wish he'd focus on bigger issues and less on his daily ablutions. For example, when speaking about his recent trip to Davos, he could have talked about the issues in greater depth.

If and when he does so, he will become India's answer to Bono.

Here's a comment he makes which shows how he can, in fact, influence the growth of a secular India:

To me Cinema has always been, apart from its entertainment value, a medium of great integration. When we enter the darkened hall of a theatre we never ask whether the person sitting next to me is a Hindu or a Muslim, or Sikh or Christian. We are never concerned with the colour of his or her skin. Of being black or white or brown. We watch before us the unfolding of a story, where we laugh together at the jokes, sing their songs together, cry together at the same emotions. There are sadly very few institutions left in this world that can propagate the values of such an event. In a world filling rapidly with hate and violence, perhaps this is one medium that prides itself in bringing together, in integrating people rather than dividing them. The popularity of Indian Cinema within our shores and now increasingly outside, is not just the stars and their physical attraction, is not just the song and dance, is not just the escapist nature of our stories, but the fact that it brings us poetic justice within 3 hours. Poetic justice for most of us, does not come within a lifetime, sometimes several lifetimes. What better example of global understanding can there be, in these strained and uncertain times.

Now let's work on real justice, and leave the entertainment to the politicians... where is India's Barack Obama?

The Rise of Transparency

"Sunlight is the best disinfectant; electric light the most efficient policeman"
- Supreme Court Justice Louis Brandeis

We need more light like this...

Thank you Lord, for the Internet. I can't wait to see what develops at recovery.org.

February 3, 2009

A Design Guide for Recessionary Times

I think we've finally hit the wall in terms of design.

Whether you're designing a product, a service, or a website, the designer has to make their work relevant to the buyer in ways they may not have considered before this recession. Here's what I mean. Your offering is no longer competing for attention or even price. It is competing on usefulness and time to value.

The question you have to answer is this: Why will this product/service help me now, and how fast can I see results?

And, two - "How can I justify spending any money on this at all?"

Three: "What's the risk for me (and my money)?"

Got it?

Pretty simple, but your survival as a company may just depend on answering those three questions properly.

So Hyundai designs a car which says, buy it, use it, and we'll take it back - if you can't pay because you lost your job. The policy allows people to return vehicles in the first 12 months if they can't make payments due to job loss and Hyundai covers depreciation. In essence, Hyundai is eliminating your risk.

Consider a small business in today's economy. Why would they spend money on anything but the essentials? So who needs MS Office when you can use Google Docs? Who needs a Mac when a netbook will help you get by? Who needs office space when you can work from home? Who needs to fly when you can Skype it in? Who needs to buy when you can rent? It's not about how much the website costs, rather, it's about how fast will I make money from the website? Why do press releases when you can blog?

It's value time, period. Show me, don't tell me.

One last thing, why should I trust you? Are you trustworthy? Is your product/service trustworthy? Maybe trust goes beyond the product/service. It lies in the concrete actions you take to actually help your customer. Have you ever thought of helping someone out who is not your customer?

February 2, 2009

Hyper-Disruption: India's $10 Laptop

Here comes the next wave of hyper-disruption: the $10 laptop.

Are your ready Dell, HP, Apple? Are you ready Microsoft?

As we saw in Getting India and China Right, by Anil Gupta and Haiyan Wang, China and India are not going to be content simply filling out orders for low-cost products. They are also going to be springboards for innovation and disruptive products and services.

When I was growing up in India, there was a rule of thumb we followed which said that anything made in India should sell for 10 times the amount in the West and vice-versa. Looks like that rule still applies!

I'm still somewhat skeptical, but hey, it's coming. If not tomorrow, then soon.

The point is this: every assumption we have about price limits and barriers needs to be challenged. If we don't challenge them, Chindia will.

Book Review: "Getting India and China Right" by Anil Gupta and Haiyan Wang

The edge has become the core.

That's the central idea presented by Anil Gupta and Haiyan Wang in their new book - Getting China and India Right: Strategies for Leveraging the World's Fastest Growing Economies for Global Advantage.

It's not enough to merely be present in India and China, argue the authors.

Their thesis: "...any Fortune 1000 company that is not busy figuring out how to leverage the rise of China and India to transform the entire company runs a serious risk of not being around as an independent entity within ten to fifteen years..."

China and India are different from all other countries in that they present four "stories" or opportunities rolled into one:

1) Mega Markets: they provide growth opportunities for every product and service

2) Cost Efficiency Platforms: with low wage rates, they can help reduce your global cost structure

3) Innovation Platforms: the talent pool of engineers and scientists can boost your firm's technical and innovation capabilities

4) Launching Pads for New Global Competitors: your next global competitors are likely to emerge from here

So what are you supposed to do?

The book guides you, chapter by chapter, to explore the following imperatives:

1) Compete in India and China simultaneously. Why? Four reasons: i) the growth trajectory for both countries places them as the world's top 4 and 5 markets for every product and service imaginable; ii) India and China offer (for the time being) complementary strengths in services and manufacturing respectively; iii) there are also remarkable similarities which help your company transfer learning from China to India and vice-versa, accelerating your success in both countries; and finally, iv) an integrated China and India strategy helps you reduce your political, economic, and intellectual property risks inherent in operating in just India or China.

2) Compete for mega market dominance through micro-customers. The authors show you how to compete at the top, middle and bottom of the pyramid in India and China. What I found especially interesting was the authors' insistence that innovation opportunities abound at the bottom of the pyramid and that companies should use this segment as a "learning laboratory" for the discovery of new business models!

3) Leverage China and India for global dominance. There are three opportunities: cost arbitrage, intellectual arbitrage, and business model innovation - each of which can help you build a global platform for competitive advantage.

4) Compete with the locals - the dragons and tigers. The authors show you how to defend yourself and compete against the emerging titans in India and China using three key strategic initiatives: i) attack these emerging titans on their own turf; ii) neutralize their supply-chain advantages by tapping into the cost effective and innovation opportunities available in both countries; and iii) pursue an integrated India plus China strategy which, oddly enough, is more difficult for the emerging players in both countries.

5) Compete for local talent. You must project a positive and visible presence in the local media and local academic institutions. You can offer better global career opportunities for employees outside of India and China. Finally, by being sensitive to cultural and social mores, your company can build strong emotional ties to employee families - spouses, and yes, parents! The authors also suggest you hire in second and third tier cities to achieve lower salary scales and reduced turnover rates. (Wuxi is calling!)

6) Rethink what it means to be a global enterprise. The authors give us four areas to rethink - global strategy, innovation, organization, and lastly, our very mindsets. They warn us to stay slightly ahead of the changes in each of these areas, lest we get left behind on the road to global competition.

This is not a light read, but it is an essential one for every manager or leader with global vision. What I haven't mentioned in this blog post is the detailed case studies and business examples the authors present to make their case.

Ignore the timely warnings and insightful lessons in this book, and chances are we'll see you on TV asking for a government bailout.

For more info, see Wang's blog here and this article in the Wall Street Journal>>

January 29, 2009

Susan Solomon: "Global Warming is Irreversible"

Now what?

Our carbon drain is clogged, and we're going to drown in our own bathtub.

Here's the bad news:

"People have imagined that if we stopped emitting carbon dioxide that the climate would go back to normal in 100 years or 200 years. What we're showing here is that's not right. It's essentially an irreversible change that will last for more than a thousand years," says Susan Solomon on NPR

Are you ready for long droughts and rising seas? While some environmentalists are worried about the extinction of polar bears and emperor penguins, or the dying oceans, I'm thinking about human extinction. As usual, the poor will be hit the hardest.

Poor Al Gore keeps trying to wake us up:

This is a national security issue which makes Al-Qaeda look like the Peanuts.

Meanwhile, the Republicans, led by Rush Limbaugh and Ann Coulter are still on their "global warming is a hoax" bandwagon.

Here Comes the Tech Greenwave: Asus' Bamboo PC

Asus Bamboo PC

The Asus Bamboo PC is here, supposedly.

Asus is advertising it, even linking to Amazon, where it seems like they're not quite ready for it.

My cynical side sees this is the latest in the greenwashing movement in the high-tech industry. If they're serious, however, I applaud them.

Here's how ASUS puts it:

ASUS has created a strategy dubbed the "4 Green Home Runs" to deliver greener products for the consumer. The “Green Home Runs” are Green Design, Green Manufacturing, Green Procurement and Green Service and Marketing.

OK, let's do it - a green value-chain! I just hope we don't learn later that they're clearing Giant Panda habitat to make PC covers.

Geek info: ASUS U6V-V1-Bamboo 12.1-Inch Laptop (2.53 GHz Intel T9400 Processor, 4 GB RAM, 320 GB Hard Drive, Nvidia 9300M GS Graphics, Vista Business)

BTW, Bamboo is pretty nifty and is definitely one of those "sustainable products for our future."

January 27, 2009

Video: Semco's Ricardo Semler

Brilliant as usual! More on Ricardo Semler here >>

BBC Documentary: What Now Mr. President? (Wake Up, Everybody!)

Here's a documentary from the BBC's Panorama.

Here's how they pitch it:

"Barack Obama takes over as US President with a promise to dramatically change America and make it a fairer place. He is inheriting the worst economic crisis in almost a century, and a country so unequal that 23,000 people die every year because they cannot afford basic healthcare. To close the gap between rich and poor Obama will have to take on the might of the corporate world, which wields enormous influence in Washington. Can he change the world's most powerful country, and should he?"

Question: ever wonder why this kind of a documentary never makes it to US television?

Wake Up, Everybody! Check out Harold Melvin & the Blue Notes:

January 26, 2009

The Two Sides of Google

Even as Jeff Jarvis' What Would Google Do? hits the market, there's another side of Google we should be aware of.

Michael Arrington has posted a thread from former-Google employees talking about why they left. Sure, disgruntled employees are not always fair and balanced, but it's interesting to learn that Google does have issues with management, bureaucracy, low pay, poor mentoring, and all the other foibles of corporate stupidity.

So what will Google do about it? Let's watch.

January 25, 2009

War as a Catalyst for Innovation

One of the spin-offs from war is technology which leads to new products in the private sector. This is not a new phenomenon, simply the way it is.

For example, "a scientific method that has been used to track the source of illegal drugs, explosives, counterfeit bills and biological warfare agents may have some new uses: detecting rapidly growing cancers and studying obesity and eating disorders." See story >>

But this story stopped me in my tracks.

The future of war is R2RC - Robot to Robot Combat.

Are you ready for this?

The result? War becomes even more abstracted, more marketable, and more tempting.

January 22, 2009

Mission Accomplished!

obamainthehouse.jpg

January 18, 2009

Krugman: Advice for Obama

Good advice from a Nobel Prize winner.

Let's go Obama! The nation is behind you >>

Yah-soft or Micro-hoo?

Either way, we know Steve Ballmer will get Yahoo this time around.

So who will be the winner and heavyweight champion of search?

Still Google.

January 17, 2009

The Coming Chinese Depression?

The global economic crisis will accelerate social unrest in China. And it will start with urban riots and demonstrations from migrant workers and poor farmers.

January 15, 2009

Get well soon, Jobs

It's a sad day, really. He's human.

Don't give Apple another thought, Steve Jobs!

I hope and pray he recovers.

He is, as the BBC says, a national treasure.

January 13, 2009

Google's Larry Page Reveals his Success Secrets

This just came in on my N2N (nerd-to-nerd) network. I thought I'd share it w/ everyone. It's titled: "Secrets of success from Google co-founder Larry Page."

Here you go - take it as propaganda, if you want, but it is interesting all the same:

# If you have a product that's really gaining a lot of usage, then it's probably a good idea.

# When you grow, you continually have to invent new processes. We've done a pretty good job keeping up, but it's an ongoing challenge.

# We built a business on the opposite message. We want you to come to Google and quickly find what you want. Then we're happy to send you to the other sites. In fact, that's the point. The portal strategy tries to own all of the information.

# Pretty early on, I saw a newspaper story about Googling dates. People were checking out who they were dating by Googling them. I think it's a tremendous responsibility. If you think everybody is relying on us for information, you understand the responsibility. That's mostly what I feel. You have to take that very seriously.

# Part of our brand is that we're pretty understated in what we do. If you look at other technology companies, they might pre-announce things, and it will be a couple years before they really happen, and they don't happen in the way they said they would.

# Through innovation and iteration, Google takes something that works well and improves upon it in unexpected ways.

# If you can run the company a bit more collaboratively, you get a better result, because you have more bandwidth and checking and balancing going on.

# The 'be good' concept also comes up when we design our products. We want them to have positive social effects. For example, we just released Gmail, a free e-mail service. We said, 'We will not hold your e-mail hostage. ' We will make it possible for you to get your e-mail out of Gmail if you ever want to.

# The dotcom period was difficult for us. We were dismayed in that climate... We knew a lot of things people were doing weren't sustainable, and that made it hard for us to operate. We couldn't get good people for reasonable prices. We couldn't get office space. It was a hypercompetitive time. We had the opportunity to invest in 100 or more companies and didn't invest in any of them. I guess we lost a lot of money in the short term -- but not in the long
term.

# Talented people are attracted to Google because we empower them to change the world. Google has large computational resources and distribution that enables individuals to make a difference.

# We don't have as many managers as we should, but we would rather have too few than too many.

# We think we're an important company, and we're dedicated to doing this over the long term. We like being independent.

# Serving our end users is at the heart of what we do and remains our number one priority.

# It definitely helps to be really focused on what you are doing.

# My experience is that when people are trying to do ambitious things, they're all worried about failing when they start. But all sorts of interesting things spin out that are of huge economic value. Also, in these kinds of projects, you get to work with the best people and have a very interesting time. They're not really taking a risk, but they feel like they are.

# From its inception, Google has focused on providing the best user experience possible. While many companies claim to put their customers first, few are able to resist the temptation to make small sacrifices to increase shareholder value. Google has steadfastly refused to
make any change that does not offer a benefit to the users who come to the site.

# You (the Google user) want answers and you want them right now. Who are we to argue?

# Many leaders of big organizations don't believe that change is possible. But if you look at history, things do change, and if your business is static, you're likely to have issues.

# If we are not trusted, we have no business. We have such a lot to lose; we are forced to act in everyone's interest."

# I would rather have people think we're confused than let our competitors know what we're going to do.

# We chose it (the name Google) because we deal with huge amounts of data. Besides, it sounds really cool.

# The ultimate search engine... would understand exactly what you mean and give back exactly what you want.

# Our company relies on having the trust of our users and using that information for their benefit. That's a very strong motivation for us. We're committed to that. If you start to mandate how products are designed, I think that's a really bad path to follow. I think instead we should have laws that protect the privacy of data, for example, from government requests and other kinds of requests.

# Many companies are under pressure to keep their earnings in line with analysts' forecasts. Therefore, they often accept smaller, predictable earnings rather than larger and less predictable returns. Sergey and I feel this is harmful, and we intend to steer in the opposite direction.

# We think a lot about how to maintain our culture and the fun elements. I don't know if other companies care as much about those things as we do. We spent a lot of time getting our offices right. We think it's important to have a high density of people. People are packed together everywhere. We all share offices. We like this set of buildings because it's more like a densely packed university campus than a typical suburban office park.

# We're trying to use the web's self-organizing properties to decide which things to present. We don't want to be in the position of having to decide these things. We take the responsibility seriously. People depend on us.

# Google is organized around the ability to attract and leverage the talent of exceptional technologists and business people. We have been lucky to recruit many creative, principled and hard working stars. We hope to recruit many more in the future. We will reward
and treat them well.

# By always placing the interests of the user first, Google has built the most loyal audience on the web. And that growth has come not through TV ad campaigns, but through word of mouth from one satisfied user to another.

# You don't want to be Tesla. He was one of the greatest inventors, but it's a sad, sad story. He couldn't commercialize anything, he could barely fund his own research. You'd want to be more like Edison. If you invent something, that doesn't necessarily help anybody. You've got to actually get it into the world; you've got to produce, make money doing it so you can fund it.

# Invariably we try 10 things that don't quite work out in order to do one thing that's successful. And we learn a lot in doing the 10 things that didn't quite work.

# We have a mantra: don't be evil, which is to do the best things we know how for our users, for our customers, for everyone. So I think if we were known for that, it would be a wonderful thing.

# It is an advantage being young. You don't have as many other responsibilities.

# If you have a great product that meets people's needs, they start telling their friends, especially when it's a search engine, which is something that everybody has to use. So we've actually been growing 20 per cent per month, compounded, for our whole history,
and without spending any significant money on advertising. It's an incredible phenomenon.

# We were, I guess, lucky enough to be trying to be profitable long before it was fashionable, and that was a really good decision. I think it's more luck than real insight on our parts, but Sergey and I really felt a lot better about having a business that could actually make money. So we figured that once we were at that stage then not much could hurt the company.

# We are focused on providing an environment where talented, hard working people are rewarded for their contributions to Google and for making the world a better place

# The amazing thing is that we're part of people's daily lives, like brushing their teeth. It's just something they do throughout the day while working, buying things, deciding what to do after
work and much more. Google has been accepted as part of people's lives. It's quite remarkable. Most people spend most of their time getting information, so maybe it's not a complete surprise that Google is successful.

# Our goal is to organize the world's information and to make it universally accessible and useful. That's our mission. When we started, we had about 30 million Web pages, which was quite large for the time -- that was two years ago. Now, we have well over a billion Web pages. So that gives you some idea of how we've grown in content. So we try to make more and more stuff available to people. We try to, when you come to Google, fulfill that need that you have as quickly as possible.

# Because of our employee talent, Google is doing exciting work in nearly every area of computer science. Our main benefit is a workplace with important projects, where employees can contribute and grow.

# We've actually been very deliberate about making all of our decisions in a way that minimizes the risk that we will go out of business basically. We have pretty conservative financial planning. That turned out to be really smart, and we've had tremendous viral
growth anyway, so we haven't really had any marketing expenses or things like that and we have huge volumes.

# The increasing volume of information is just more opportunity to build better answers to questions. The more information you have, the better.

# You can try to control people, or you can try to have a system that represents reality. I find that knowing what's really happening is more important than trying to control people.

# In the same way Google puts users first when it comes to our online service, Google Inc. puts employees first when it comes to daily life in our Googleplex headquarters.

# Technology knowledge is going to drive wealth: people's ability to deal with technology and to build interesting things.

# Always deliver more than expected.

# It is a tremendous responsibility for us to have all eyes focused on what we do and to give people exactly what they need when they ask for it.

# We believe it is easy to be penny wise and pound foolish with respect to benefits that can save employees considerable time and improve their health and productivity.

# Our opportunity and responsibility has continued to expand. It doesn't feel all that different to me than it did a few years ago.

# The thing that matters is experience. We have lots of executives from failed companies; they learned a lot from these things. They say, 'We can't do that -- we tried that and it didn't work.' So failure is useful.

# When you have basic technology you find interesting things to do with them, and if you're lucky they'll turn into something big.

War Crimes: Has Israel lost its way?

Some would argue that this is Israel's way. So will it, and its leaders, have to face a war crimes tribunal?

Here are three specific reasons why the "war crimes" charge cannot be taken lightly:

Collective punishment: The entire 1.5 million people who live in the crowded Gaza Strip are being punished for the actions of a few militants.

Targeting civilians: The airstrikes were aimed at civilian areas in one of the most crowded stretches of land in the world, certainly the most densely populated area of the Middle East.

Disproportionate military response: The airstrikes have not only destroyed every police and security office of Gaza's elected government, but have killed and injured hundreds of civilians; at least one strike reportedly hit groups of students attempting to find transportation home from the university.

Gideon Levy writes in Haaretz:

"Ehud Olmert, Ehud Barak and Tzipi Livni will stand at the forefront of the guilty. Two of them are candidates for prime minister, the third is a candidate for criminal indictment. It is inconceivable that they not be held to account for the bloodshed."

Even Rupert Murdoch's Wall Street Journal had an op-ed piece titled: Israel Is Committing War Crimes.

The Bush administration is to blame as well. Their non-engagement policy - to leave the Arabs and Israelis to work out issues on their own - has been a failure of leadership at the highest level. And Gaza is paying for it in blood.

January 7, 2009

Better Decision-Making: Tom Davenport and Peter Drucker

Here's a brilliant post from "decision-making" guru Tom Davenport. He asks us to "make 2009 the Year of Better Decisions."

Here's what Davenport recommends:

1) Make a list of key decisions: not all decisions are equal, so you have to ask yourself what the key decisions are.

2) Classify decisions by type: For example, is the decision financial, personal, strategic, or tactical? By deciding how to treat different types of decisions differently, companies (and individuals) can become more effective.

3) Track decisions and their outcomes: without this, you can't improve your decision-making abilities. And if things did go wrong, why did it happen?

4) Establish a decision-making coaching group: to improve decision-making across the company!

5) Create a decision-making process for the company: how do we make this decision? Davenport gives us an example from Air-Products (the company which, I believe, initially decided that not using an ERP system would be a competitive advantage.)

Good stuff.

I'd to bring Peter Drucker into the picture at this point. For Drucker, a decision has not been made until people know:

- the name of the person accountable for carrying it out;
- the deadline;
- the names of the people who will be affected by the decision and therefore have to know about, understand, and approve it—or at least not be strongly opposed to it—and
- the names of the people who have to be informed of the decision, even if they are not directly affected by it.

And one more crucial point from Drucker:

Most discussions of decision making assume that only senior executives make decisions or that only senior executives' decisions matter. This is a dangerous mistake. Decisions are made at every level of the organization, beginning with individual professional contributors and frontline supervisors. These apparently low-level decisions are extremely important in a knowledge-based organization. Knowledge workers are supposed to know more about their areas of specialization—for example, tax accounting—than anybody else, so their decisions are likely to have an impact throughout the company. Making good decisions is a crucial skill at every level. It needs to be taught explicitly to everyone in organizations that are based on knowledge.

R.I.P. Peter!

I'm counting on Obama being a far-better decision-maker than Dick Cheney.

Effectiveness and Efficiency: Making Government Accountable - The Role of the Chief Performance Officer

We all know that the role of government is different from the role of business. To pretend, like the Republicans do, that government should be run like a business is to a mistake of gargantuan proportions. Business and government have different functions. One to maximize and sustain profits, the other to "insure domestic tranquility, provide for the common defense, etc. etc."

So how do we go about measuring performance in government? And how can we manage government strategically?

Let's start by looking at the functions of government ( from the Preamble):

1. To form a more perfect Union
2. To establish justice
3. To insure domestic tranquility
4. To provide for the common defense
5. To promote the general welfare
6. To secure the blessings of liberty

Now let's adapt these functions for each government agency. For fun, let's start with the IRS Without a fair tax system, we aren't going to have 1 through 6. So how do we look at what the IRS needs to do to become more effective and efficient? For starters, the tax code has to become more equitable. This means our corporate friends need to start paying their fair share. Loop holes for the super-rich must be closed. We need to stop rewarding companies that ship jobs overseas. And hey, let's add a carbon tax so we know we're going to be building sustainable industries.

I'm only half kidding.

Each agency will have to create a scorecard of what "performance" means. And it will have to be measured against delivered results. WaPo has a cute article about this.

The real task is to manage government strategically. Here's a fun chart from Nancy Killefer herself:

strategic governance

Read: How can American government meet its productivity challenge?

In the end, you can't manage what you can't measure (including intangibles). So here's to the future of transparent, accountable government. Bring it, Obama!

January 2, 2009

The Limits of Green: Environmental Branding gets Messy

Prediction: 2009 will get "greenwashing" companies into hot water.

The danger in cause-related marketing is that it causes more harm to a company than good, especially when companies get involved in less than good faith.

This can happen, for example, when a company like P&G gets overzealous in its PR and engineers its own green awards.

And the slope gets slippery when the Sierra Club gets involved with Clorox.

Or when SC Johnson creates its own Greenlist(TM) process - and logo! Does anyone really believe that Windex is a green product?

Or when Dell claims it's carbon neutral.

The simple question for business is can we trust you?

The answer, so far, is no.

After eight years of laissez-faire, we are finally entering into a new phase of corporate accountability. And it's not just about greenwashing.

December 26, 2008

10 Questions (not Predictions) for 2009

1. Will Obama fix the mess?

2. Who will replace Steve Jobs?

3. Will someone fix Yahoo?

4. Will anyone find/catch bin-Laden?

5. How many Bush regulations will be repealed?

6. Will Richard Branson start a Virgin Auto Company?

7. Will Google buy Twitter? Squidoo?

8. Netbooks! The $100 netbook is coming to disrupt the PC market... will it be from Google? or a Nokia?

9. How soon will we see a commercial mortgage collapse?

10. Will real unemployment hit 25%? 30%?

Rebooting America

A similar tune from both Friedman and Krugman at the NYTimes...

Here's Friedman:

My fellow Americans, we can’t continue in this mode of “Dumb as we wanna be.” We’ve indulged ourselves for too long with tax cuts that we can’t afford, bailouts of auto companies that have become giant wealth-destruction machines, energy prices that do not encourage investment in 21st-century renewable power systems or efficient cars, public schools with no national standards to prevent illiterates from graduating and immigration policies that have our colleges educating the world’s best scientists and engineers and then, when these foreigners graduate, instead of stapling green cards to their diplomas, we order them to go home and start companies to compete against ours.

To top it off, we’ve fallen into a trend of diverting and rewarding the best of our collective I.Q. to people doing financial engineering rather than real engineering. These rocket scientists and engineers were designing complex financial instruments to make money out of money — rather than designing cars, phones, computers, teaching tools, Internet programs and medical equipment that could improve the lives and productivity of millions.

For all these reasons, our present crisis is not just a financial meltdown crying out for a cash injection. We are in much deeper trouble. In fact, we as a country have become General Motors — as a result of our national drift. Look in the mirror: G.M. is us.

and Krugman:

So what are the lessons for the Obama team?

First, the administration of the economic recovery plan has to be squeaky clean. Purely economic considerations might suggest cutting a few corners in the interest of getting stimulus moving quickly, but the politics of the situation dictates great care in how money is spent. And enforcement is crucial: inspectors general have to be strong and independent, and whistle-blowers have to be rewarded, not punished as they were in the Bush years.

Second, the plan has to be really, truly pork-free. Vice President-elect Joseph Biden recently promised that the plan “will not become a Christmas tree”; the new administration needs to deliver on that promise.

Finally, the Obama administration and Democrats in general need to do everything they can to build an F.D.R.-like bond with the public. Never mind Mr. Obama’s current high standing in the polls based on public hopes that he’ll succeed. He needs a solid base of support that will remain even when things aren’t going well.

Go Barack, Barack!

Neuro-Selling: Mind Control in the Grocery Store?

The science of shopping?

The article should've been called mind control in your local supermarket.

I agree with this: "despite all the new technology, simply talking to consumers remains one of the most effective ways to improve the 'customer experience'."

Too bad we can't spend the same kind of money on research figuring out the best way to teach Johnny how to read, write and do arithmetic...

Here's "Mind Control" from Stephen Marley:

December 24, 2008

Wuxi Calling

wuxi.jpg

China's advertising in Silicon Valley, trying to lure Asian-Americans to move to the "Most Aspiring City of Prosperity and Civilization in the Southeast of China."

Just another act in the global war for talent...

December 21, 2008

The Financial Crisis: Perspectives from China and India

James Fallows' interview with China's Gao Xiqing, president of the China Investment Corporation is an eye-opener:

- "People, especially Americans, started believing that they can live on other people’s money. And more and more so. First other people’s money in your own country. And then the savings rate comes down, and you start living on other people’s money from outside. At first it was the Japanese. Now the Chinese and the Middle Easterners.

- "If you look at every one of these [derivative] products, they make sense. But in aggregate, they are bullshit. They are crap. They serve to cheat people.

- "I have to say it: you have to do something about pay in the financial system. People in this field have way too much money. And this is not right.

- "Today when we look at all the markets, the U.S. still is probably the most viable, the most predictable. I was trained as a lawyer, and predictability is always very important for me.

- "Americans are not sensitive in that regard. I mean, as a whole. The simple truth today is that your economy is built on the global economy. And it’s built on the support, the gratuitous support, of a lot of countries. So why don’t you come over and … I won’t say kowtow [with a laugh], but at least, be nice to the countries that lend you money.

- "Talk to the Chinese! Talk to the Middle Easterners! And pull your troops back! Take the troops back, demobilize many of the troops, so that you can save some money rather than spending $2 billion every day on them. And then tell your people that you need to save, and come out with a long-term, sustainable financial policy."

and then there's the Indian perspective:

- “In India, we never had anything close to the subprime loan,” said Chandra Kochhar, the chief financial officer of India’s largest private bank, Icici. (A few days after I spoke to her, Ms. Kochhar was named the bank’s new chief executive, in a move that had long been anticipated.) “All lending to individuals is based on their income. That is a big difference between your banking system and ours.” She continued: “Indian banks are not levered like American banks. Capital ratios are 12 and 13 percent, instead of 7 or 8 percent. All those exotic structures like C.D.O. and securitizations are a very tiny part of our banking system. So a lot of the temptations didn’t exist.”

- " “We recognize it as a problem of plenty. It was perpetuated by greedy bankers, whether investment bankers or commercial bankers. The greed to make money is the impression it has made here. Anytime they wanted a loan, people just dipped into their home A.T.M. It was like money was on call.”

Serious business this.

December 18, 2008

The End of Chinamerica

Interesting commentary from Harvard's Niall Ferguson:

With China decoupled from America—relying less on exports to the U.S. market, caring less about its currency’s peg to the dollar—the end of Chimerica would have arrived, and with it the balance of global power would be bound to shift. No longer so committed to the Sino-American friendship established back in 1972, China would be free to explore other spheres of global influence, from the Shanghai Cooperation Organization, of which Russia is also a member, to its own informal nascent empire in commodity-rich Africa.

Yet commentators should hesitate before prophesying the decline and fall of the United States. It has come through disastrous financial crises before—not just the Great Depression, but also the Great Stagflation of the 1970s—and emerged with its geopolitical position enhanced. That happened in the 1940s and again in the 1980s.

Part of the reason it happened is that the United States has long offered the world’s most benign environment for technological innovation and entrepreneurship.

Read all about it >>

December 17, 2008

A.G. Lafley on Innovation

See also Gaurav Bhalla's post on A.G. Lafley's brand of customer-driven innovation >>

December 16, 2008

Gaurav Bhalla on Customer-Driven Innovation

I recently convinced Gaurav Bhalla, the global innovation director at Kantar-TNS, one of the world's largest market information and research companies, to start blogging.

His blog - GauravBhalla.com: The Practice of Customer-Driven Innovation - promises to be insightful and interesting all at once. See, for example, the post titled A.G. Lafley: The CEO as Commercial Anthropologist >>

Stay tuned...

December 13, 2008

Mark Anderson: 10 Technology Predictions for 2009

1.) It will be a big year for applications that can play on big screens.

2.) The big news in the mobile world will be smart phone applications.

3.) The blush is off the China rose.

4.) Flash-based computing will really take off.

5.) Wall computing gets traction.

6.) Carry-along computers will be hot.

7.) LTE (Long Term Evolution) will be the preferred technology for 4G.

8.) The less developed world will finally see widespread availability of broadband.

9.) Voice recognition will finally work right.

10.) The Internet Assistant will be born.

Don't ask me, I'm simply reporting what Mark Anderson's saying.

The one I'm certain about is the "carry-along" computer. I want real laptop computing in the size of a Penguin paperback. Are you listening, Apple?

December 5, 2008

Warren Buffet to Auto CEOs: Put Your Own Money in the Game

I wonder if Obama will get the fat-cats to put their own hides on the line...

December 1, 2008

More Dying Sounds from Newspapers

Newspaper advertising revenue drops by 18% ($2 billion)... while online advertising stays put.

What's a newspaper to do?

Beyond HR: Where Does Talent have the Biggest Impact?

Very interesting:

The book: Beyond HR: The New Science of Human Capital

Maybe we need to think about good old Pareto: What 20% of talent delivers 80% of the profits?

In my experience, the real problem with most companies is that HR is not viewed as a strategic function. And their most valuable assets are anything but...

Online Advertising in a Recession

internetads.gif

The Economist:

"online advertising will continue to expand in the recession—just not as quickly as previously expected..."

Online advertising is 100% accountable, period. And what's more, campaigns can be optimized in real-time.

That said, there are ways to escape the tyranny of search. All it takes is ecosystem intelligence.

November 30, 2008

How to Think Inside the Box

See also: Kevin Coyne's 21 Questions for Developing New Products

November 29, 2008

Strategic Cost Reduction: How to Trim the Federal Budget using the Pareto Principle

JH3 is a big fan of the 80/20 principle:

The 80/20 rule provides the foundation for a relatively simple exercise for executives. It involves answering the following questions:

* Which 20% of the products or services generate 80% of the profitability?
* Which 20% of the customers generate 80% of the profitability?
* Which 20% of the geographies generate 80% of the profitability?
* Which 20% of the assets generate 80% of the profitability?

These are powerful and revealing questions, yet few companies today are able to answer these questions given the way their accounting and information systems are set up.

I wonder if the same approach could be applied to the Federal Budget. Obama, are you listening?

The pareto questions might look something like this:

- Which 20% of our costs take up 80% of the budget?
- Which 20% of our services impact 80% of the tax-paying public?
- Which 20% of our geographies require 80% of our aid?
- Which 20% of our public generate 80% of our tax revenues?

Betcha these could be eye-openers!

Accenture: How To Create A Culture Of High Performance

Accenture is advertising How To Create A Culture Of High Performance.

I agree with them that "the central attribute of a successful leader is the ability to change the way people think."

But I completely disagree when they say that "Successful leaders get everyone to share the same mindsets."

I think the opposite is true: successful leaders bring together diverse points of view to challenge each other and present different alternatives, thus helping the leader make informed, effective decisions.

What Accenture is calling "mindsets" is really groupthink. Groupthink is a recipe for disaster, not high performance.

In the course of a two-year investigation, Accenture determined five "mindsets" which matter most in improving business performance:

Mindset 1: Maintain the Right Balance Between Market-Making and Disciplined Execution by Avoiding False Trade-offs and Committing to a Dual Focus on Present and Future.

Mindset 2: Identify and Multiply Talent by Investing a Disproportionate Amount of Time in Recruiting and Developing People.

Mindset 3: Use A Selective Scorecard to Measure Business Performance By Relying on a Simple, Memorable Way of Measuring Success and Using Every Occasion to Share Success Stories Throughout the Organization.

Mindset 4: Recognize Technology as a Strategic Asset by Investing in Technologies that Demonstrably Lead to Better Business Performance.

Mindset 5: Emphasize Continuous Renewal by Ensuring the Organization Understands What to Preserve and What to Jettison.

November 28, 2008

The Return of Ross Perot

Take a look at PerotCharts.com

Thanksgiving 2008: The Return of Competency

obama_kindergarten.jpg

I'm thankful for an intelligent President-elect!

November 24, 2008

Seth Godin teaches the New York Times How to Compete

In my line work (consulting) I run into all kinds of executive mindsets. In the publishing world, however, these mindsets tend to be rather stodgy at best, reptilian at worst.

Publishers don't understand the web. And Seth Godin takes the New York Times to task, pointing out so many obvious misses and near-misses, that you have to ask why. Why don't publishers get it? Why do they insist on playing it safe, even as their ship sinks below them?

Godin's answer is right on target: "organizations are run by people who want to protect the old business, not develop the new one."

This is what VG talks about as well.

In just about any large company, the people running the show are great at yesterday's business, not tomorrow's.

Please read Godin's post >>


November 16, 2008

More Obama Lessons for Business

Bill George (yes, Medtronic's Bill George) gives us a few more lessons learned from the Obama victory:

• Obama created a grassroots movement by building an ever-expanding organization of empowered leaders, who in turn engaged people from their social networks like Facebook.

• The entire organization was aligned around a single goal—electing Obama as President—and operated with common values ("Offer messages of hope, don't denigrate our opponents, refuse to make deals").

• Campaign leaders subordinated their egos and personal ambitions to the greater goal. Those who deviated quickly exited.

• Obama set a clear, consistent tone from the top ("No Drama Obama"), and never wavered, even when things weren't going well.

• Obama's greater mission transcended internal goals, such as fund-raising, endorsements, and campaign events, but each of these areas had goals tied to the greater mission.

• The campaign team used the most modern Internet tools to communicate, motivate, and inspire people and to guide their actions. Each day, 5 million people received personal messages from campaign headquarters or even Obama himself. This organization collaborated across a wide range of geographies and campaign functions, all tightly integrated nationally and executed locally.

Finally, just in case you missed the other business lessons, here you go >>

November 15, 2008

Shoshana Zuboff: Obama's Victory is Capitalism 2.0

Writes Zuboff in BusinessWeek:

"This column is dedicated to the top managers of American business whose policies and practices helped ensure Barack Obama's victory. The mandate for change that sounded across this country is not limited to our new President and Congress. That bell also tolls for you. Obama's triumph was ignited in part by your failure to understand and respect your own consumers, customers, employees, and end users. The despair that fueled America's yearning for change and hope grew to maturity in your garden."

Years ago I remember reading Zuboff's In the Age of the Smart Machine and thinking that no one in corporate management really wants real transparency... and that the information value-chain she described was doomed to failure.

Luckily, I was wrong. Now Obama will bring process transparency to government and business.

Asks Zuboff:

"...can we invent a business model in which advocacy, support, authenticity, trust, relationship, and profit are linked?"

"Yes, we must," she concludes.

Read the article >>

And read her book: The Support Economy: Why Corporations Are Failing Individuals and the Next Episode of Capitalism
>>

November 12, 2008

The Bailout that Wasn't

I don't know enough to even comment on this, but something is rotten in the state of Denmark (er, United States)...

Tom Friedman: "Steve Jobs - want to run G.M. for a year?"

Tom Friedman made me laugh today:

"...somebody ought to call Steve Jobs, who doesn’t need to be bribed to do innovation, and ask him if he’d like to do national service and run a car company for a year. I’d bet it wouldn’t take him much longer than that to come up with the G.M. iCar."

The rest of his column is a bit more serious. But it's dead on!

November 10, 2008

Business Lessons Learned from President-Elect Barack Obama

What should the new President's priorities be? Here are some views from a few CEOs interviewed by BusinessWeek:

It's a cliche, but big business fears Democratic leaders. Turns out that Democratic presidents are better for the economy than Republicans! Details, details...

Jack Welch has his own take on why Obama succeeded: a clear vision, clean execution, and friends in high places.

A far more insightful piece comes from HBR blogger Umair Haque: Obama's Seven Lessons for Radical Innovators. I don't agree with all of his points (Obama did not "minimize strategy," he minimized tactics!) but I do commend Haque for his insights (see this post, for example, on why Obama is the Google of Politics.)

Bill Taylor has a fun post titled: How Obama Became CEO of the USA -- and What It Means for CEOs Everywhere
in which he argues that "being different makes all the difference."

John Quelch says it's all about better marketing.

Barbara Kellerman argues that Obama is a superior manager.

Gill Corkindale calls Obama The World's First 21st Century Leader

For Stew Friedman, it's authenticity.

My own view is that Obama is a true leader. And what we witnessed was the birth of Politics 2.0.

And in the end, it's still about results, and to that end, Obama has already taken the first step.

Go Barack!

Obama's Innovation Strategy

So what will Obama's innovation strategy look like? Here's a clue or two:

November 7, 2008

The Return of American Idealism: Political Reaction to Obama's Win

Reaction to Obama's win from politicians across the world:

UKRAINE: "Your victory is an inspiration for us. That which appeared impossible has become possible." - Youlia Tymoshenko, Prime Minister

MALI: "The United States has given a lesson, a lesson in maturity and a lesson in democracy." - Amadou Toure, President

ITALY: "Europe which is celebrating (the victory of) Obama must know that Europe be will be called on to be a producer of security and no longer merely a consumer. I think Obama will rightly call on us to take our responsibilities more seriously." - Franco Frattini, Foreign Minister

BRAZIL: "In this case hope has won over prejudice -- this is good for the United States and the world as a whole." - Celso Amorin, Foreign Minister

RUSSIA: "The news we are receiving on the results of the American presidential election shows that everyone has the right to hope for a freshening of U.S. approaches to all the most complex issues, including foreign policy and therefore relations with the Russian Federation as well." - Grigory Karasin, Deputy Foreign Minister

IRAQ: "I think you will hear a lot of discussion and goals and slogans during the election campaigns. When there is a reality check I think any U.S. president has to look very hard at the facts on the ground." - Hoshiyar Zebari, Foreign Minister

ISRAEL: "Israel expects the close strategic cooperation with the new administration, president and Congress will continue along with the continued strengthening of the special and unshakeable special relationship between the two countries." - Tzipi Livni, Foreign Minister

VATICAN: "Believers are praying that God will enlighten him and help him in his great responsibility, which is enormous because of the global importance of the United States...We hope Obama can fulfil the expectations and hopes that many have in him." - Rev. Federico Lombardi, spokesman for Pope Benedict

PAKISTAN: "Your election marks a new chapter in the remarkable history of the United States. For long, the ideas of democracy, liberty and freedom espoused by the United States has been a source of inspiration...I hope that under your dynamic leadership, the United States will continue to be a source of global peace and new ideas for humanity." - Yousaf Raza Gilani, Prime Minister

INDIA: "Your extraordinary journey to the White House will inspire people not only in your country but also around the world." - Manmohan Singh, Prime Minister

HOLLAND: "The necessity for cooperation between Europe and the United States is bigger than ever. Only by close transatlantic cooperation can we face the world's challenges." - Jan Peter Balkenende, Prime Minister

FRANCE: "With the world in turmoil and doubt, the American people, faithful to the values that have always defined America's identity, have expressed with force their faith in progress and the future. At a time when we must face huge challenges together, your election has raised enormous hope in France, in Europe and beyond." - Nicolas Sarkozy, President

AFGHANISTAN: "I applaud the American people for their great decision and I hope that this new administration in the United States of America, and the fact of the massive show of concern for human beings and lack of interest in race and color while electing the president, will go a long way in bringing the same values to the rest of world sooner or later." - Hamid Karzai, President

GREAT BRITAIN: "Barack Obama ran an inspirational campaign, energizing politics with his progressive values and his vision for the future. I know Barack Obama and we share many values. We both have determination to show that government can act to help people fairly through these difficult times facing the global economy." - Gordon Brown, Prime Minister

KENYA: "We the Kenyan people are immensely proud of your Kenyan roots. Your victory is not only an inspiration to millions of people all over the world, but it has special resonance with us here in Kenya." - Mwai Kibaki, President

CHINA: "The Chinese Government and I myself have always attached great importance to China-U.S. relations. In the new historic era, I look forward to working together with you to continuously strengthen dialogue and exchanges between our two countries." - Hu Jintao, President

GERMANY: "I offer you my heartfelt congratulations on your historic victory in the presidential election... The world faces significant challenges at the start of your term. I am convinced that Europe and the United States will work closely and in a spirit of mutual trust together to confront new dangers and risks and will seize the opportunities presented by our global world." - Angela Merkel, Chancellor

JAPAN: "The Japan-U.S. alliance is key to Japanese diplomacy and it is the foundation for peace and stability in the Asia-Pacific region. With President-elect Obama, I will strengthen the Japan-U.S. alliance further and work toward resolving global issues such as the world economy, terror and the environment." - Taro Aso, Prime Minister

SOUTH AFRICA: "Africa, which today stands proud of your achievements, can only but look forward to a fruitful working relationship with you both at a bilateral and multilateral levels in our endeavor to create a better world for all who live in it." - Kgalema Motlanthe, President

CANADA: "I look forward to meeting with the President-elect so that we can continue to strengthen the special bond that exists between Canada and the United States." - Stephen Harper, Prime Minister

AUSTRALIA: "Senator Obama's message of hope is not just for America's future, it is also a message of hope for the world as well. A world which is now in many respects fearful for its future." - Kevin Rudd, Prime Minister

NEW ZEALAND: "Senator Obama will be taking office at a critical juncture. There are many pressing challenges facing the international community, including the global financial crisis and global warming. We look forward to working closely with President-elect Obama and his team to address these challenges." - Helen Clark, Prime Minister

INDONESIA: Indonesia especially hopes that the U.S., under new leadership, will stand in the front and take real action to overcome the global financial crisis, especially since the crisis was triggered by the financial conditions in the U.S." Susilo Bambang Yudhoyono, President

PHILLIPINES: "We welcome his triumph in the same vein that we place the integrity of the US electoral process and the choices made by the American people in high regard. We likewise note the making of history with the election of Senator Obama as the first African-American president of the United States." - Gloria Macapagal Arroyo, President

IRAN: "The president-elect has promised changes in policies. There is a capacity for the improvement of ties between America and Iran if Obama pursues his campaign promises, including not confronting other countries as Bush did in Iraq and Afghanistan, and also concentrating on America's state matters and removing the American people's concerns." - Ali Aghamohammadi, aide to Ayatollah Ali Khamenei

PALESTINIAN AUTHORITY: "We hope the president-elect in the United States will stay the course and would continue the U.S. engagement in the peace process without delay. We hope the two-state vision would be transferred from a vision to a realistic track immediately." Saeb Erekat, aide to President Mahmoud Abbas

And for a less pompous tone, here are a few statements from ordinary people:

LEBANON: In a Beirut restaurant, Miriam, 28, said her two brothers, both members of the militant Islamic group Hezbollah, saw Mr. Obama as a leader who was willing to take diplomatic risks to avoid military confrontations. "They think Obama will not damage the Middle East the way Bush did, and they were afraid if [John] McCain made it, the whole region would be in danger."

BRAZIL: In Rio de Janeiro, documentary filmmaker Ryan Steers said Mr. Obama could improve the U.S. image abroad. "Obama is someone the world can trust. That is the most important thing for America right now: regaining its trust in the world community."

KENYA: People danced in the streets in Mr. Obama's ancestral village of Kogelo, and President Mwai Kibaki declared Thursday a national holiday. In Nairobi's Kibera shantytown, carpenter Joseph Ochieng said, "If it were possible for me to get to the United States on my bicycle, I would."

JAPAN: "Americans overcame the racial divide and elected Obama," said Terumi Hino, a photographer and painter in Tokyo. "I think this means the United States can go back to being admired as the country of dreams.

Brand America Gets its Groove Back

Thanks Obama!

and

The Night of the American Renaissance

The American Renaissance has begun. Goodbye, Dark Ages...

November 6, 2008

Victory: Steel Pulse: Go Barack

I finally got some sleep. The world has changed.

What a beautiful thing it is:

Steel Pulse teaches us the meaning of product versioning. See previous version here >>

October 31, 2008

Michael Porter: Why America Needs an Economic Strategy

"The stark truth is that the U.S. has no long-term economic strategy—no coherent set of policies to ensure competitiveness over the long haul. Strategy embodies clear priorities, based on understanding the strengths we need to preserve and the weaknesses that threaten our prosperity the most. Strategy addresses what to do, but also what not to do. In dealing with a crisis, experience teaches us that steps to address the immediate problem must support a long-term strategy. Yet it is far from clear that we are taking the steps most important to America's long-term economic prosperity."

That's the Portermeister in BusinessWeek.

What he's saying is Vote Obama :-)

October 28, 2008

Bleakonomics: Warren Buffet on what went wrong and the road ahead

Good thing Obama has Warren Buffet on his team...

October 23, 2008

Scott Anthony: How to be a Disruptive Innovator

Invest a little, learn a lot.

October 22, 2008

Henry Mintzberg: Leadership Beyond the Bush MBA

I've always enjoyed his work >>

See also: "How Productivity Killed American Enterprise"

The Future of the Corporation: Henry Mintzberg, David Korten, and Arie de Geus

Corporate interests need to get out of government, period.

Tell that to the lobbyists...

October 21, 2008

India Joins the Asian Space Race

I'm happy to see the Indians go for the moon, joining their Chinese and Japanese counterparts as they jockey for prestige and bragging rights.

Is it science or technonationalism? Both of the above, but somehow the politics outweighs the science.

Now let's all compete (or collaborate) to build green energy power generation projects!

Recession as Opportunity

The nerds at Bain give us a few reminders from history:

- Southwest Airlines surged ahead during the 2001 recession

- Intel pulled away from AMD (also in 2001)

- Johnson & Johnson, GE and IBM shifted focus on economically healthier regions in Q2/2008

- Bank of America gobbled up Merrill Lynch (the opportunity of a lifetime) - just a few days ago

So, where are your opportunities?

Shaping Strategy in a World of Constant Disruption: How to Manage Your Business Ecosystem

In this month's Harvard Business Review, authors John Hagel III, John Seely Brown and Lang Davison provide a road map for the daunting task of shaping strategy as technology-driven infrastructures constantly change.

The article is called: “Shaping Strategy in a World of Constant Disruption” and you can download it here (thanks Deloitte Consulting!) >>

In my view this is a very timely piece of thinking from my heroes JH3 and JSB (and Lang Davison). I'll dig into it later this month on ecosystemwatch.com...

Wait, there's more. Check out the podcast >>

October 20, 2008

Online Selling: Procter & Gamble Goes Direct to Fight Private Labels?

Don't look now, but P&G is trying some direct selling online.

From the Financial Times:

Procter & Gamble is testing its ability to use the internet to sell its toothpaste, household cleaners and nappies directly to US households, in a potential long-term strategic challenge to its retail partners.

...The move brings P&G into direct brand competition with its retailers, underlining the extent to which e-commerce is contributing to changes in the way the two sides have traditionally worked with each other.

OK. The site is called theEssentials.com, but so far it looks like they have very little traffic.

Is this how they intend to fight the private label war? I'll talk about them later this month on ecosystemwatch.com

October 19, 2008

Drucker 101: What Makes an Effective Executive

For those of you emailing me about why I'm harping on about Peter Drucker, please read this: What Makes an Effective Executive>>

Drucker's Warning

“In the next economic downturn there will be an outbreak of bitterness and contempt for the super-corporate chieftains who pay themselves millions.” Peter Drucker in 1997

The Republican Strategy

And of course there's just plain hate >>

SNL Disaster: Sarah Palin Mocks Herself

This is truly amazing. The folks at SNL get VP candidate Sarah Palin to applaud a song which rips her to shreds... What was the McCain campaign thinking? Total and utter lack of judgment on their part.

Watch as SNL schools the McCain campaign:

Brilliant work by SNL. They get the ratings and trash the Republicans.

October 18, 2008

What Would Peter Drucker Do?

Looks like Rupert Murdoch's WSJ is thinking along the same lines we are (for a few seconds at least).

They've gone an dug up an old article Peter Drucker wrote for them: Planning for Uncertainty.

Here are some of the key questions:

- ...traditional planning asks, "What is most likely to happen?" Planning for uncertainty asks, instead, "What has already happened that will create the future?"

- "What do these accomplished facts mean for our business? What opportunities do they create? What threats? What changes do they demand -- in the way the business is organized and run, in our goals, in our products, in our services, in our policies? And what changes do they make possible and likely to be advantageous?"

- "What changes in industry and market structure, in basic values (e.g., the emphasis on the environment), and in science and technology have already occurred but have yet to have full impact?"

- "What are the trends in economic and societal structure? And how do they affect our business?"

- "What is this company good at? What does it do well? What strengths, in other words, give it a competitive edge? Applied to what?"

He ends with a serious warning for the bean-counters:

There is, however, one condition: that the business create the resources of knowledge and of people to respond when opportunity knocks. This means developing a separate futures budget.

The 10% or 12% of annual expenditures needed to create and maintain the resources for the future -- in research and technology, in market standing and service, in people and their development -- must be put into a constant budget maintained in good years and bad. These are investments, even though accountants and tax collectors consider them operating expenses. They enable a business to make its future -- and that, in the last analysis, is what planning for uncertainty means.

And don't forget his advice for retail strategy >>

Warren Buffett: "Buy American. I am"

OK.

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.

Read all about it >>

5 Questions about Strategy and Business Design

Now is a good time to ask yourself these five business design questions (ht to Oliver Wyman):

1. Who is the customer and what do we offer? Which customer segments should we serve, and what is our value proposition for each segment?

2. What is our profit model for each of our offerings?

3. What do we perform in-house and what do we outsource?

4. How do we build in strategic control? Is there a way to create sustainable differentiation?

5. How should we organize ourselves to make it happen? What is the right organizational architecture to execute the business for each segment?

You can download the business blueprint (registration required): level-one flowcharts of how to run a profitable, sustainable, online business.

1) Offer development process
2) Offer creation process
3) Sales process
4) Marketing process
5) Order fulfillment & support process
6) Financial process
7) Licensee certification process
8) Licensee business development process
9) Events process
10) Archival process

October 17, 2008

David Letterman: The Comedian who Became an Anchor

As I mentioned earlier, it does seem like the comedians do a better job on serious issues.

In this case, David Letterman stands head and shoulders above our so-called news people like George Stephanopoulos, Tom Brokaw, Katie Couric, and Brian Williams.

Part One

Part Two

Part Three

Part Four

Note: Letterman's interview also turns out to be the first mainstream media mention of the Liddy-McCain connection. So who's the real terrorist?

Retail Strategy in a Downturn: Pay Your Vendors Fast (like T.J. Maxx)

In BusinessWeek:

Industry observers say that while those retailers can take 60 to 90 days or more to settle up, TJX typically pays within 30. These days, that's a critical selling point both to vendors, who are more concerned about finding funds to buy raw materials and pay expenses, and to the financers who act as middlemen in many of the deals. It could give TJX—which also owns discounters Marshalls and HomeGoods—an added advantage in getting a wider selection of items.

Makes sense. Can't sell something that's not on the shelf, Drucker used to say...

Read the article here>>

There's another very good reason to pay quickly: goodwill.

Your suppliers will take an extra step or two for you if they know they can count on you. This "trust" makes a giant difference in execution.

There's a software company I know which used to delay its vendor payments as much as possible as part of its strategy. While it may have gained a few bucks in capital, it lost in terms of responsiveness. Big time. Vendors would move extremely slowly to deliver value. It was frustrating on both sides. And all because a few "brilliant" bean-counters thought they had found a way to squeeze a few more pennies into the corporate treasury.

God is in the Process: The Legacy of Michael Hammer

I have to say I was shocked when I saw the news about Michael Hammer. He was just sixty. Goes to show you how precious every second is. It may be that they need to do some process re-engineering up in heaven. Maybe make it more customer friendly or something...

Down here on Earth, process re-engineering isn't as fashionable as it used to be. And I wonder how many people got laid off because of Reengineering the Corporation: A Manifesto for Business Revolution (Collins Business Essentials).

But Hammer was misunderstood. His ideas were abused by company executives and the management consulting industry. Today his ideas live on in the heads of IT nerds and companies like Zara.

Where do you (and your company) stand? Check out the maturity models he created:
1) for process maturity, and 2) for enterprise maturity.

Too bad we didn't see the one on leadership maturity.

Here are some fun links:

- Put Processes First: Make High Performance Possible Michael Hammer
- Michael Hammer: A Tribute to the Guru of Operations Anand Raman
- Remembering Michael Hammer Tom Davenport

In the end, process matters. Even our buddy Drucker acknowledged that.

BTW, the other process guru who is still (very) alive and kicking isTom Davenport.

October 16, 2008

Retail Strategy: Tips from Peter Drucker

One of the great things about the late Peter Drucker is that he can be summoned to solve just about any problem.

One of my clients is a web retailer. They're having serious issues with "customer hesitancy."

And of course the headlines are now full of bad news in retail.

So we had a long chat about customer hesitancy. What makes the customer hesitant? Is it really the news on TV? Is it the fact that they might be out of a job?

My first piece of advice to them was straight out of Drucker: Stop selling and start buying for the customer.

Are you buying for the customer? Really?

That line of reasoning led to these predictable questions: so exactly who is your customer? Are there segments you aren't serving that you should? Are there segments you should stop wasting your time with?

We were able to go and look at their historic web-sales data (for the past two years down to the last two weeks) to find out who their customers really were. And surprise, there was no customer hesitancy there!

All they needed was to focus on the right segment. We changed the website to do just that.

Listen to good old (in this case a younger, "1.0 version") Drucker:

Who is voting for Obama?

106 years old Mother Cecilia Gaudette votes for Obama. Her last vote was for Eisenhower! More about Catholics for Obama here >>

See also: Who is voting for McCain?

Who is voting for McCain?

You can fool some people all the time:

This is all that's left: lies and racism. McCain has taken the rednecks for another ride.

Heckuva job, McCain!

October 14, 2008

What Went Wrong

I'm still trying to understand what this economic meltdown is all about.

Here are a few good links:

When fortune frowned The Economist

Yes, It’s A Wreck, But We Can Fix It Newsweek

Financial crisis: World round-up BBC

Good Financial Information Matters More Than Ever Robert Schiller

Financial Leadership, the Missing Ingredient
Rick Wartzman

Our Choice Nouriel Roubini

We Have the Tools to Manage the Crisis Paul Volcker

Good Policies Can Save the Economy Lee Ohanian

Fundamentalists versus Realists Paul Romer

The Stunning Collapse of Iceland Business Week

and here's a "fun" look at another issue:

This stock collapse is petty when compared to the nature crunch Guardian Unlimited

Finally, here's some humor: 5 financial crisis jokes from Marketplace >>

* 5. I went to buy a toaster, and it came with a bank.
* 4. Money talks. Trouble is, mine only knows one word: Goodbye.
* 3. How do you define optimism? A banker who irons five shirts on Sunday.
* 2. What’s the capital of Iceland? Answer: $3.50.

And the No. 1 financial crisis joke of the week is …

Q: What is the one thing Wall Street and the Olympics have in common?
A: Synchronized diving!

October 13, 2008

Robert Schiller's Subprime Solution

The irrationally exuberant Robert Schiller is back with a book called The Subprime Solution.

Don't have time for the book? Read the summary >>

Download the Blueprint: 10 Processes to Run Your Business

blueprint

Level-one flowcharts of how to run a profitable, sustainable, online business. Covers the following work processes:

1) Offer development process
2) Offer creation process
3) Sales process
4) Marketing process
5) Order fulfillment & support process
6) Financial process
7) Licensee certification process
8) Licensee business development process
9) Events process
10) Archival process

You'll have to register for this one >>

What Works in a Downturn: Purpose-Branding or Cause-Marketing

Despite the downturn, there is evidence that consumers are interested in "purpose branding."

That's the spin from Procter & Gamble's Jim Stengel who (surprise, surprise) is leaving P&G at the end of the month to join a "purpose branding" consultancy.

Back-up data: In a study released this month, 26% of consumers expect companies to give more support to causes and nonprofits in an economic downturn, while 52% expect companies to maintain existing programs. Another 79% of consumers said if price and quality were similar, they would switch to a brand associated with a good cause.

OK, I'll buy it.

And if your company is looking to do some cause-related branding, here's a cool green company you should team up with: The Solar Electric Light Fund >>

Why Does Africa Suffer So Much?

Is there any hope for Africa?

The first step is to understand why.

October 7, 2008

Downturn 2008: Harvard Business Review's Survival Guide

And now, a survival guide from HBR.

My favorite entries:

- Why Entrepreneurs Love a Downturn
- How to Market in a Recession
- Staying Green in a Tough Economic Climate
- Three Steps to Innovating in Struggling Industries
- America’s Addiction and the New Economics of Strategy
- Beyond the Banking Crisis: A Strategy Crisis
- Hard Times Demand Teamwork -- Not an MVP

Non sequitur: What is the difference between Palin and a Muslim fundamentalist? Lipstick.

What Obama Can Teach You About Your Business

This article really is a bit too skewed on the "social networking" side of things, but I do agree w/ what John Della Volpe is saying, that Obama's "blue-ocean strategy" to get the youth involved (beginning with Iowa), and his brilliant use of technology and social networking to attract, engage, and involve people in the campaign has made all the difference.

But Obama can teach business a lot more than Web 2.0.

His decision-making is classic Peter Drucker. According to campaign adviser Susan Rice:

"He listens to various viewpoints. He elicits dissenting views. He weighs those rationally and pragmatically. But then he tends to make a relatively swift and clear decision."

Which makes Obama an analytical decision-maker with a talent for delivering inspiring speeches.

Leadership 2.0 is what we call it.

ALSO:
McCain, on the other hand, is reckless. And his incompetent decision to choose a clearly incompetent Palin as his replacement is an insult to the office of the President and the American people. He just doesn't have a clue!

October 6, 2008

Leadership 2.0: Barack Obama versus John McCain

There's an interesting interview with Ronald Heifetz about "the leader of the the future" in an old edition of Fast Company which made me think about the difference between Barack Obama and John McCain.

Here's what made me sit up:

"Imagine the differences in behavior between leaders who operate with the idea that "leadership means influencing the organization to follow the leader's vision" and those who operate with the idea that "leadership means influencing the organization to face its problems and to live into its opportunities." That second idea -- mobilizing people to tackle tough challenges -- is what defines the new job of the leader."

OK. There it is in black and white. The difference between Leadership 1.0 and 2.0. Sounds cheesy, but hey, it is reality.

Leadership 1.0: authoritarian, fear-driven, no dissent, command and control.

Leadership 2.0: participative, purpose-driven, dissent encouraged, guide and coach.

[I know, we could compile lists like this for days on end...]

But think about it. This is nothing more than McGregor's old Theory X versus Theory Y.

God help this world if Theory X wins this time around!

September 7, 2008

Friedman versus Senge: The Race for the Green Business Bestseller

My opinion: Tom Friedman will win the bestseller race easily, but Peter Senge's book is more important. The good news? They're both serious about business and sustainability.

Here's Senge:

And here's his book: The Necessary Revolution: How Individuals And Organizations Are Working Together to Create a Sustainable World

Check out this interview with Senge>>

And this download>>

And here's Friedman's book pitch:

His book: Hot, Flat, and Crowded: Why We Need a Green Revolution--and How It Can Renew America

His website>>

And finally, a little column from Friedman>>

Exxon, your days are numbered.

Slacker Uprising: Michael Moore's Digital Distribution Model

Coming soon at www.slackeruprising.com>>

Note: The download is only available to those residing in the United States and Canada. In order to receive the free download on September 23rd, you must confirm that you are a resident of the United States or Canada.

Will this change the movie business? Or better, will it change our government?

September 5, 2008

Shoe Circus: Gates and Seinfeld take on Google, Apple - er, Goople

Here's Crispin Porter & Bogusky's attempt to "bring back" Microsoft:

It's the first in a series of ads designed to fight Apple's "Mac vs. PC" comedy show. Will $300 million do the job?

C'mon Microsoft! You can't let Apple do this to you:

The scary thing is there's so much more.

The way I see it this isn't about Vista at all. It's about the next wave of competition, about how Microsoft will compete against Goople - Google apps on Apple hardware!

September 1, 2008

Leadership Assessment: What John McCain can learn from GE

Does anyone believe that a Fortune 500 company would pick Sarah Palin as their CEO?

When Jack Welch transformed GE, he introduced several new criteria for evaluating executive leadership and performance. His successor, Jeffrey Immelt went through an exhaustive succession planning (er, vetting) process to replace him.

Here's a look at GE's leadership assessment matrix. The key attributes are:

- Vision
- Customer / Quality Focus
- Integrity
- Accountability / Commitment
- Communication / Influence
- Shared Ownership / Boundaryless
- Team Builder / Empowerment
- Knowledge / Expertise / Intellect
- Initiative / Speed
- Global Mind-set

Not bad. Does your company look at leadership this way?

Here are the details:

Vision
- Has developed and communicated a clear, simple, customer-focused Vision / direction for the organization.
- Forward-thinking, stretches horizons, challenges imaginations.
- Inspires and energizes others to commit to Vision. Captures minds. Leads by example.
- As appropriate, updates Vision to reflect constant and accelerating change impacting the business.

Customer / Quality Focus
- Listens to customer and assigns the highest priority to customer satisfaction, including internal customers.
- Inspires and demonstrates a passion for excellence in every aspect of work.
- Strives to fulfill commitment to Quality in total product / service offering.
- Lives Customer Service and creates service mind-set throughout organization.

Integrity
- Maintains unequivocal commitment to honesty / truth in every facet of behavior.
- Follows through on commitments; assumes responsibility for own mistakes.
- Practices absolute conformance with company policies embodying GEI&PS commitment to ethical conduct.
- Actions and behaviors are consistent with words. Absolutely trusted by others.

Accountability / Commitment
- Sets and meets aggressive commitments to achieve business objectives.
- Demonstrates courage / self-confidence to stand up for the beliefs, ideas, - Fair and compassionate yet willing to make difficult decisions.
- Demonstrates uncompromising responsibility for preventing harm to the environment

Communication / Influence
- Communicates in open, candid, clear, complete, and consistent manner – invites response / dissent.
- Listens effectively and probes for new ideas.
- Uses facts and rational arguments to influence and persuade.
- Breaks down barriers and develops influential relationships across teams, functions, and layers.

Shared Ownership / Boundaryless
- Self-confidence to share information across traditional boundaries and be open to new ideas.
- Encourages / promotes shared ownership for Team Vision and goals.
- Trusts others; encourages risk taking and boundaryless behavior.
- Champions Work-Out as a vehicle for everyone to be heard. Open to ideas from anywhere.

Team Builder / Empowerment
- Selects talented people; provides coaching and feedback to develop team members to fullest potential.
- Delegates whole task; empowers team to maximize effectiveness. Is personally a Team Player.
- Recognizes and rewards achievement. Creates positive / enjoyable work environment.
- Fully utilizes diversity of team members (cultural, race, gender) to achieve business success.

Knowledge / Expertise / Intellect
- Possesses and readily shares functional / technical knowledge and expertise. Constant interest in learning.
- Demonstrates broad business knowledge / perspective with cross-functional / multicultural awareness.
- Makes good decisions with limited data. Applies intellect to the fullest.
- Quickly sorts relevant from irrelevant information, grasp essentials of complex issues and initiates action.

Initiative / Speed
- Creates real and positive change. Sees change as an Opportunity.
- Anticipates problems and initiates new and better ways of doing things.
- Hates / avoids / eliminates "bureaucracy" and strives for brevity, simplicity, clarity.
- Understands and uses speed as a competitive advantage.

Global Mind-set
- Demonstrates global awareness / sensitivity and is comfortable building diverse / global teams.
- Values and promotes full utilization of global and work force diversity.
- Considers the global consequences of every decision. Proactively seeks global knowledge.
- Treats everyone with dignity, trust, and respect.

So, how do you measure up?

To me this is another dimension on the Ram Charan / Ben Franklin leadership model I blogged about a while back.

And now, sit back and listen carefully:

August 31, 2008

Global Reaction to Obama's DNC Speech

Wow!

speechreaction.gif

The video is here >>

Operation Rescue America

If Obama loses, the USA is finished. That's how important this moment is:

The Rise and Fall of Stupidity in America

Tom Tomorrow's at it again:

tt

If only this was funny...

Is Nick Carr Making us Stupid?

John Hagel writes about Nick Carr's talent for "stirring debate":

the Internet is subtly molding our minds to favor brief snippets of information rather than the nuance and complexity that can only be communicated in much longer forms such as books.

Hagel's point is:

"...snippets of information alone are deeply dangerous. They distract us with never-ending waves of surface events, spreading us ever thinner and obscuring the deeper structures and dynamics that ultimately are shaping these surface events. Those of us who stay only on the surface, swimming in a sea of snippets, will ultimately lose sight of land.

We need books, or whatever the digital long forms of content are that will replace the book, to help us penetrate the surface and explore the deeper structures and dynamics that make sense of the changes around us."

I wanted tell Carr that it was TV that made us stupid before Google, but that we keep discovering new ways to demonstrate it. Every generation proves its stupidity in new and wondrous ways.

Now if we could just get the Republican presidential candidate to start reading a book or two, we might be onto something.

August 20, 2008

Peter Drucker on Knowledge Productivity

I love stumbling upon old Peter Drucker interviews. The insights he throws out with just about every breath are astonishing.

Here he is on knowledge productivity:

"There has been no increase in the productivity of knowledge work. I began to teach on my twentieth birthday. November 19, 1929, I gave my first university lecture. There has been no improvement in the productivity of college faculty since. If anything, it has gone down, because of committee meetings.

My distinguished colleagues spend God only knows how much time in committee meetings, and there has never been a committee meeting that produced any results. President Roosevelt said, If I want to make absolutely sure that nothing gets done, I appoint a committee."

Good to know that committees still rule the world of both corporate and government decision-making.

Leadership Styles

Leadership Styles

View image

Who would you rather have as your boss? As the leader of your country?

The U.S. Army backs 'Synthetic Telepathy' research

Are you ready for this?

What are we? China??

August 19, 2008

Putin's Bet

So why did Putin send the Russian army into Georgia?

Apparently this incursion has been some time in the planning. And despite the political reasons, I still feel there's an oil game going on.

Putin's rewrite of reality is something he's adopted by watching the US administration's actions in Iraq. If the US can invade a country like Iraq on false pretenses, why can't we?

And again, there's an oil connection as well.

Andrew J. Bacevich on The Limits of Power

Andrew J. Bacevich — Professor of International Relations at Boston University, retired Army colonel, and West Point graduate — joins Bill Moyers on the JOURNAL to encourage viewers to take a step back and connect the dots between U.S. foreign policy, consumerism, politics, and militarism.

Wake up, everybody.

August 18, 2008

Where Your Income Tax $$ Goes

Here's what the Emperor of Ice-Cream - Ben Cohen - has to say:

And here's an online game for you to play - allocate your very own federal budget!!

See also: sensiblepriorities.org >>

VIDEO: The Curious Connection Between Juvenile Delinquency and Entrepreneurship - Steven Berglas and Marshall Goldsmith on Being Entrepreneurial in Hard Times

August 11, 2008

The War on Science: Bush takes scientists out of decision-making on species status

This administration is evil. They destroy life on earth every chance they get. All for a few bucks...

That's what you get with the GOP: rubber stamps (er, dodos) for industry.

Scientists can now go suck eggs.

Heckuva job, Bush! Here's your contribution to world history:

Arctic

Greenland ice sheet will virtually completely disappear, raising sea levels by over 30 feet, submerging coastal cities, entire island nations and vast areas of low-lying countries like Bangladesh

Latin America

The Amazon rainforest will become dry savannah as rising temperatures and falling water levels kill the trees, stoke forest fires and kill off wildlife

North America

California and the grain-producing Midwest will dry out as snows in the Rockies decrease, depriving these areas of summer water

Australia

The Great Barrier Reef will die. Species loss will occur by 2020 as corals fail to adapt to warmer waters. On land, drought will reduce harvests

Europe

Winter sports suffer as less snow falls in the Alps and other mountains; up to three-fifths of wildlife dies out. Drought in Mediterranean area hits tourism

Africa

Harvests could be cut by up to half in some countries by 2020, greatly increasing the threat of famine. Between 75 million and 250 million people are expected to be short of water within the next 30 years

Final note: so what's a scientists to do these days? They can work on building invisible clothes for Bush and Exxon-Mobil executives.

And now, a word from our sponsors:
Global warming is brought to you by the Bush administration and is generously underwritten by Exxon-Mobil.

August 10, 2008

How to Innovate while You Sleep

Your mind is active when you sleep. Mine, I'm not so sure...

Seriously though:

1. State your problem
2. Go to sleep
3. Problem solved!

Details
>>

China: Police State 2.0?

The opening ceremonies were spectacular. I'll give them that.

But they were quite Orwellian as well...

Propaganda as theater. Theater as in the world stage.

Naomi Klein explains:

"The goal of all this central planning and spying is not to celebrate the glories of Communism, regardless of what China's governing party calls itself. It is to create the ultimate consumer cocoon for Visa cards, Adidas sneakers, China Mobile cell phones, McDonald's happy meals, Tsingtao beer, and UPS delivery -- to name just a few of the official Olympic sponsors. But the hottest new market of all is the surveillance itself. Unlike the police states of Eastern Europe and the Soviet Union, China has built a Police State 2.0, an entirely for-profit affair that is the latest frontier for the global Disaster Capitalism Complex."

What a disaster! Bring on the smog and mirrors.

P.S. - more on MacHistory here>>

Losing the Talent War: Immigration Policy and The Reverse Brain Drain

As a kid in India, the phrase "brain drain" meant someone smart just left India to work in the US.

Now it looks like the tables have turned:

"...more than 1 million highly skilled professionals such as engineers, scientists, doctors, researchers, and their families are in line for a yearly allotment of only around 120,000 permanent-resident visas for employment-based principals and their families in the three main employment visa categories (EB-1, EB-2, and EB-3). These individuals entered the country legally to study or to work. They contributed to U.S. economic growth and global competitiveness. Now we've set the stage for them to return to countries such as India and China, where the economies are booming and their skills are in great demand. U.S. businesses large and small stand to lose critical talent, and workers who have gained valuable experience and knowledge of American industry may become potential competitors."

Ouch.

Skilled immigrants create jobs:

"...more than half of the engineering and technology companies started in Silicon Valley and a quarter of those started nationwide from 1995 to 2006 had immigrant founders. These companies employed 450,000 workers and generated $52 billion in revenue in 2006."

We need a new policy on skilled immigration, Obama.

More info: an editorial by Alan Webber on the same topic>>

August 5, 2008

Nurturing Your Business Ecosystem: Lessons Learned from SAP

JH3 and JSB have written an insightful piece for BusinessWeek titled: How SAP Seeds Innovation: SAP's collaborative Web sites and discussion forums give its customers ways to learn from SAP business partners as well as from each other.

So why does SAP succeed where others fail?

According to Hagel:

1) SAP generated its ecosystem, which consists of customers, business partners, experts and independent parties by addressing the needs of the participants

and

2) it focused on the needs of individuals, not just companies.

There you have it: people first.

Read the entire article >>

August 4, 2008

Exxon & Peabody Coal: Crimes Against the Earth

Sit tight and listen keenly >>

This is not a joke... if you have children (or a conscience) please read this:

Twenty Years Later: Tipping Points Near on Global Warming
by James Hansen

Tomorrow I will testify to Congress about global warming, 20 years after my 23 June 1988 testimony, which alerted the public that global warming was underway. There are striking similarities between then and now, but one big difference.

Again a wide gap has developed between what is understood about global warming by the relevant scientific community and what is known by policymakers and the public. Now, as then, frank assessment of scientific data yields conclusions that are shocking to the body politic. Now, as then, I can assert that these conclusions have a certainty exceeding 99 percent.

The difference is that now we have used up all slack in the schedule for actions needed to defuse the global warming time bomb. The next President and Congress must define a course next year in which the United States exerts leadership commensurate with our responsibility for the present dangerous situation.

Otherwise it will become impractical to constrain atmospheric carbon dioxide, the greenhouse gas produced in burning fossil fuels, to a level that prevents the climate system from passing tipping points that lead to disastrous climate changes that spiral dynamically out of humanity’s control.

Changes needed to preserve creation, the planet on which civilization developed, are clear. But the changes have been blocked by special interests, focused on short-term profits, who hold sway in Washington and other capitals.

I argue that a path yielding energy independence and a healthier environment is, barely, still possible. It requires a transformative change of direction in Washington in the next year.

On 23 June, 1988, I testified to a hearing, chaired by Senator Tim Wirth of Colorado, that the Earth had entered a long-term warming trend and that human-made greenhouse gases almost surely were responsible. I noted that global warming enhanced both extremes of the water cycle, meaning stronger droughts and forest fires, on the one hand, but also heavier rains and floods.

My testimony two decades ago was greeted with skepticism. But while skepticism is the lifeblood of science, it can confuse the public. As scientists examine a topic from all perspectives, it may appear that nothing is known with confidence. But from such broad open-minded study of all data, valid conclusions can be drawn.

My conclusions in 1988 were built on a wide range of inputs from basic physics, planetary studies, observations of on-going changes, and climate models. The evidence was strong enough that I could say it was time to “stop waffling.” I was sure that time would bring the scientific community to a similar consensus, as it has.

While international recognition of global warming was swift, actions have faltered. The U.S. refused to place limits on its emissions, and developing countries such as China and India rapidly increased their emissions.

What is at stake? Warming so far, about two degrees Fahrenheit over land areas, seems almost innocuous, being less than day-to-day weather fluctuations. But more warming is already “in-the-pipeline,” delayed only by the great inertia of the world ocean. And climate is nearing dangerous tipping points. Elements of a “perfect storm”, a global cataclysm, are assembled.

Climate can reach points such that amplifying feedbacks spur large rapid changes. Arctic sea ice is a current example. Global warming initiated sea ice melt, exposing darker ocean that absorbs more sunlight, melting more ice. As a result, without any additional greenhouse gases, the Arctic soon will be ice-free in the summer.

More ominous tipping points loom. West Antarctic and Greenland ice sheets are vulnerable to even small additional warming. These two-mile-thick behemoths respond slowly at first, but if disintegration gets well underway it will become unstoppable. Debate among scientists is only about how much sea level would rise by a given date. In my opinion, if emissions follow a business-as-usual scenario, sea level rise of at least two meters is likely this century. Hundreds of millions of people would become refugees. No stable shoreline would be reestablished in any time frame that humanity can conceive.

Animal and plant species are already stressed by climate change. Polar and alpine species will be pushed off the planet, if warming continues. Other species attempt to migrate, but as some are extinguished their interdependencies can cause ecosystem collapse. Mass extinctions, of more than half the species on the planet, have occurred several times when the Earth warmed as much as expected if greenhouse gases continue to increase. Biodiversity recovered, but it required hundreds of thousands of years.

The disturbing conclusion, documented in a paper I have written with several of the world’s leading climate experts, is that the safe level of atmospheric carbon dioxide is no more than 350 ppm (parts per million) and it may be less. Carbon dioxide amount is already 385 ppm and rising about 2 ppm per year. Stunning corollary: the oft-stated goal to keep global warming less than two degrees Celsius (3.6 degrees Fahrenheit) is a recipe for global disaster, not salvation.

These conclusions are based on paleoclimate data showing how the Earth responded to past levels of greenhouse gases and on observations showing how the world is responding to today’s carbon dioxide amount. The consequences of continued increase of greenhouse gases extend far beyond extermination of species and future sea level rise.

Arid subtropical climate zones are expanding poleward. Already an average expansion of about 250 miles has occurred, affecting the southern United States, the Mediterranean region, Australia and southern Africa. Forest fires and drying-up of lakes will increase further unless carbon dioxide growth is halted and reversed.

Mountain glaciers are the source of fresh water for hundreds of millions of people. These glaciers are receding world-wide, in the Himalayas, Andes and Rocky Mountains. They will disappear, leaving their rivers as trickles in late summer and fall, unless the growth of carbon dioxide is reversed.

Coral reefs, the rainforest of the ocean, are home for one-third of the species in the sea. Coral reefs are under stress for several reasons, including warming of the ocean, but especially because of ocean acidification, a direct effect of added carbon dioxide. Ocean life dependent on carbonate shells and skeletons is threatened by dissolution as the ocean becomes more acid.

Such phenomena, including the instability of Arctic sea ice and the great ice sheets at today’s carbon dioxide amount, show that we have already gone too far. We must draw down atmospheric carbon dioxide to preserve the planet we know. A level of no more than 350 ppm is still feasible, with the help of reforestation and improved agricultural practices, but just barely – time is running out.

Requirements to halt carbon dioxide growth follow from the size of fossil carbon reservoirs. Coal towers over oil and gas. Phase out of coal use except where the carbon is captured and stored below ground is the primary requirement for solving global warming.

Oil is used in vehicles where it is impractical to capture the carbon. But oil is running out. To preserve our planet we must also ensure that the next mobile energy source is not obtained by squeezing oil from coal, tar shale or other fossil fuels.

Fossil fuel reservoirs are finite, which is the main reason that prices are rising. We must move beyond fossil fuels eventually. Solution of the climate problem requires that we move to carbon-free energy promptly.

Special interests have blocked transition to our renewable energy future. Instead of moving heavily into renewable energies, fossil companies choose to spread doubt about global warming, as tobacco companies discredited the smoking-cancer link. Methods are sophisticated, including funding to help shape school textbook discussions of global warming.

CEOs of fossil energy companies know what they are doing and are aware of long-term consequences of continued business as usual. In my opinion, these CEOs should be tried for high crimes against humanity and nature.

Conviction of ExxonMobil and Peabody Coal CEOs will be no consolation, if we pass on a runaway climate to our children. Humanity would be impoverished by ravages of continually shifting shorelines and intensification of regional climate extremes. Loss of countless species would leave a more desolate planet.

If politicians remain at loggerheads, citizens must lead. We must demand a moratorium on new coal-fired power plants. We must block fossil fuel interests who aim to squeeze every last drop of oil from public lands, off-shore, and wilderness areas. Those last drops are no solution. They yield continued exorbitant profits for a short-sighted self-serving industry, but no alleviation of our addiction or long-term energy source.

Moving from fossil fuels to clean energy is challenging, yet transformative in ways that will be welcomed. Cheap, subsidized fossil fuels engendered bad habits. We import food from halfway around the world, for example, even with healthier products available from nearby fields. Local produce would be competitive if not for fossil fuel subsidies and the fact that climate change damages and costs, due to fossil fuels, are also borne by the public.

A price on emissions that cause harm is essential. Yes, a carbon tax. Carbon tax with 100 percent dividend is needed to wean us off fossil fuel addiction. Tax and dividend allows the marketplace, not politicians, to make investment decisions.

Carbon tax on coal, oil and gas is simple, applied at the first point of sale or port of entry. The entire tax must be returned to the public, an equal amount to each adult, a half-share for children. This dividend can be deposited monthly in an individual’s bank account.

Carbon tax with 100 percent dividend is non-regressive. On the contrary, you can bet that low and middle income people will find ways to limit their carbon tax and come out ahead. Profligate energy users will have to pay for their excesses.

Demand for low-carbon high-efficiency products will spur innovation, making our products more competitive on international markets. Carbon emissions will plummet as energy efficiency and renewable energies grow rapidly. Black soot, mercury and other fossil fuel emissions will decline. A brighter, cleaner future, with energy independence, is possible.
Washington likes to spend our tax money line-by-line. Swarms of high-priced lobbyists in alligator shoes help Congress decide where to spend, and in turn the lobbyists’ clients provide “campaign” money.

The public must send a message to Washington. Preserve our planet, creation, for our children and grandchildren, but do not use that as an excuse for more tax-and-spend. Let this be our motto: “One hundred percent dividend or fight!”

The next President must make a national low-loss electric grid an imperative. It will allow dispersed renewable energies to supplant fossil fuels for power generation. Technology exists for direct-current high-voltage buried transmission lines. Trunk lines can be completed in less than a decade and expanded analogous to interstate highways.
Government must also change utility regulations so that profits do not depend on selling ever more energy, but instead increase with efficiency. Building code and vehicle efficiency requirements must be improved and put