Take Control Of Your...

Resistence to change is self-destructive

2012-02-15T06:54:00.000-08:00

I know someone who has been unemployed for almost 3 years, yet persists in looking for a job in a field which is virtually obsolete. She refuses to listen to any suggestions fo alternatives, and refuses to even consider jobs outside that field even when invited to do so. I know someone, growing up before homogenized milk, who continues to shake the milk jug before pouring out any milk. Why, when change is the most exciting and interesting element of life, do people resist it?

I see this in personal lives and in business life. Changing bad habits is very difficult and in business we cling to the old way of doing things until we are overtaken by events - or a 25 year old, who then becomes the old fogy in turn.

We have no one to blame but ourselves if, in refusing to change, we become obsolete.

If the Euro implodes, fraud will explode

2011-12-13T07:59:00.000-08:00

The potential for fraud is enormous if the Euro has problems
Today, the New York Times carried an article about some of the issues which would arise if Greece drops the Euro. There were many listed, and they were horrifying. It also points out that planning for it is being discouraged for fear that would make it more likely. Yet, it is clearly Top Management's fiduciary responsibility to do so. If they do not, and it happens, they could be held legally responsible for any negative results.

One of the most uncertain in size, but inevitability in occurrence is fraud. Any sudden realignment of currencies (and it would have to be sudden to prevent flight of capital), would provide enormous opportunities to fraud rings. Most current fraud prevention methods would be helpless as they could not act fast enough. Billions would be lost by the companies that engage in business using Euros. Few have considered this as the fragmentation of the Euro looks very possible.

How to make sense of Big data

2011-11-24T11:12:00.000-08:00

The advance of database technology and hardware enables us to built larger and larger data warehouses with massive amounts of data - big data. The increasing demands from financial transactions, network connections, and other areas makes this a requirement. Yet, trying to make sense of this data is like trying to take a sip of water from a fire-hose. The quantity of data is just too large to review using tables. Even data-mining requires hypothesis formation to write the query. The only way to access this data in a useful way is through visualization. Initially, this has been through graphs and diagrams. However, these are relatively clumsy and require reference back to the tables and charts. Our knowledge of human perception has advanced, along with algorithms and the capability of the Graphical Processing Unit to the point that Synerscope presents big data in a way which the human eye and brain finds natural. This means that humans can draw meaning from visualizations that hold millions of pieces of data.

The successful, incurious man or woman

2011-11-23T13:21:00.000-08:00

There are many people who are successful without being curious, yet others are. You could not create iPods were you not curious, but you might be able to be a successful commodity trader. Curiosity is laudable, like virtue, in itself, not because of any material reward it brings. I do find it more interesting to be in the company of curious people, but those who are not may be just as decent, or perhaps more so. There is no correlation.

Magical thinking is not just for children any more.

2011-11-21T07:43:00.001-08:00

So often we see intelligent adults assume that you can get the behavior and process you want by a simple change in one element. Whether this is as simple as an assumption that transferring policing or fighting wars to private enterprise will make it more effective and efficient, or that changing electoral systems will create greater democracy, it is usually too simplistic to be true. Both government and private enterprise have internal as well as external pressures. Many of these hurt efficiency as others help it. Voting systems can create greater democracy, but only if other conditions are present. To assume that making one simple macro change will automatically improve the way things are done is magical thinking of the sort that is normally found in 5 year old children.

Is the BBC'S impact in the US growing by the personal presence of Katty Kay?

2011-11-13T10:31:00.000-08:00

The BBC has long had a positive image in the US. Known for impartial news and high quality programs, whether entertainment or informative, it has nevertheless not been a major presence in the US. With the introduction of two cable channels, that has started to change. Yet, that is not itself enough. However, it seems that the main news anchor on BBC news America, Katty Kay, is everywhere these days. On Sunday morning talk shows, authoring a book, and speaking at conferences, she has made the BBC real to many Americans. If only there were more people like her showcasing the BBC, it would be more watched and listened to. Which does beg the question of why when one person does it so well, why are there not more people doing it at all?

Kachingle is a new model in monetizing the web

2011-11-04T08:30:00.000-07:00

Kachingle, http://www.kachingle.com/home.php, is a new model that allows readers to reward content they like by making micro-payments. The reader sets a monthly budget, say $5 or much more. Then when they see a site they like, they click on the button to send a proportion of that to the site. It is more like NPR than the Wall Street Journal, as it relies on an honor system, but it does seem to work well.

Infrastructure is the reason why the US is crumbling

2011-11-04T07:42:00.000-07:00

The recent snowstorm in the Northeast highlighted our crumbling infrastructure. 50% of homes in CT without power four days later. Apparently, CT is three times as forested now as it was in 1985. So, if you insist on hanging power lines from poles, the likelihood of them being brought down by falling trees has gone up several times. Add to that a 20% reduction in work crews and a reduction in regular tree trimming (now done only once every five years) and power outages are inevitable. Add to that, reductions in maintenance of roads, bridges, railroad tracks and rolling stock, and the US is the only developed or developing country where infrastructure is getting worse, not better.

The inevitable conclusion, if maintenance and repair continues to fall behind is continued erosion of infrastructure. Thinking ahead, as we used to in the 50s, 60s, and 70s, would prevent this from happening.

Why do US speed limits end in "5"?

2011-10-10T10:38:00.000-07:00

Every other country, including our neighbor, Canada, has almost all speed limits end in "0." So, we get 30, 40, 50, 60, 70, etc. H0wever, in the US, they almost always end in "5," even though car speedometers show speeds ending in "0." I have often wondered why the US adopted this counter-intuitive and probably more difficult system. But like light switches going up to turn a light on, it is yet another example of American exceptionalism. I have tried to find the origins of this, but perhaps, like driving on the right or the left, there is no sure answer.

The US Post Office is quite remarkable

2011-09-20T09:14:00.000-07:00

For 48c a letter can be picked up from any of over 100 Million locations, and within one to three days, bo transported thousands of miles, to any of over 100 Million locations, with a precision which is remarkable - much more accurately than Fedex or UPS, which will charge about 40X as much. Other Western countries charge around twice as much and cover few far locations and far smaller distances. We see one of the most effective and accurate services ever to exist, at a price that is unequalled. Yet, we fail to value it enough and never think to marvel at how it achieves this. When it finally dies, our descendents will find it difficult to believe.

Do journalists have an obligation to check facts, or should they merely repeat what they hear?

2011-09-04T09:57:00.000-07:00

It has long amazed me to see that usually, when an interviewee blatantly lies or makes an incorrect statement, the journalist will let it stand. To me, this undermines the credibility of the journalist. yet it is not seen as the function of most journalists. It seems that the justification for the special position of the Fourth Estate is the fact that it seeks the truth to put in front of the public. Yet it has become more like entertainment. If journalists are not charged with seeking the truth, and challening untruths, why should the press occupy a special position?

Why do we blog?

2011-08-24T06:47:00.000-07:00

Do we simply like to hear the sound of our own voices? Are we seeking publicity? Do we want to make money? Are we altruistic? Do we want to keep learning by being on the leading edge?

I suspect that while the balance may vary, most bloggers have more than one motivation. With many millions of blogs out there, most get little or no readership, and a tiny percentage get in the thousands of readers. I also find that it is a good self-discipline to force myself to think of a topic on a (semi)-regular basis and then to articulate the thought. It is harder work than Tweeting or reposting articles to Facebook or Digg. I would encourage everyone to have a go.

When does media impartiality become irresponsible?

2011-07-31T15:26:00.000-07:00

The media in many democracies tries to be impartial in its news coverage. However, sometimes presenting a balanced view of two perspectives if one is wrong, is a disservice and betrayal of the reader or viewer. Giving equal time to flat-earthers may be one of those, or to those who argue that the moon landings were rigged. So at what point does it become irresponsible to not point out that Iraq did not have WMDs? In regard to the debt ceiling? It is wrong not to point out that to refuse to pay for debts which were incurred when Congress authorized the spending, will have bad consequences, as when a homeowner refuses to make mortgage payments, or a credit card holder refuses to pay even the minimum payment.
This suggests that the media now misunderstands its proper role in a democracy. Informing the audience of opinions is not mandatory, but it is of facts, and opinions should be marked as such.

Putting barriers between you and a prospective customer or client

2011-07-26T06:06:00.000-07:00

It always amazes me that companies will put barriers between them and a prospect. One of the most common is forcing them to provide contact information before allowing them to download a brochure (even if you call it a white paper). If you really believe that a prospect will think more highly of you after they have read it, why create a disincentive? You should want to get it into as many hands as possible. Prospects want to buy! They would not be looking otherwise. So it is important to streamline the process by stripping out the obstacles in the way. Allow the prospect to buy by putting them in control of the process.

How to land a corporate job after 50!

2011-07-23T05:28:00.000-07:00

Conventional wisdom has it that people over 50 never land jobs with corporations. Yet, while it is immensely difficult, I do know many people who have. In fact, I was recently talking to a friend, who at 67, has just landed a senior position with a very well known corporation. With no college degree, he has landed about 4 times since he was 50 at major corporations. How does he, and all the others, do it? Quite simple - he has built a strong network of people who know and trust him so much that they reach out to him. This does not mean that he is passive - far from it. He has spent a lifetime building that network, and works hard to maintain it. As your friends and colleagues retire, or even die, the network must be kept fresh. Do favors for them, even unasked, and keep your skills fresh. No one finds a job after 50 by simply going through the routine application process (even at younger ages, this is rare), but through the networks you build.

Google+ How about "Friends" and "Close Friends'?

2011-07-19T12:39:00.000-07:00

So far, I like Google+. I like how it splits Facebook's "Friends" into two classes. However, I hate "Friends" and "Acquaintances." It is almost an insult to label someone who may have been a friend on Facebook, an "acquaintance." Why did they not call them "Friends" and "Close Friends?"

How to bring optimism back

2011-07-19T12:38:00.000-07:00

Events can be a function of attitude. Today, there is pessimism all around and no one who seems to have a big vision. There are those who have small visions, but the world and its component parts seem headed off a cliff. This need not be the case. It takes a catalyst to change this. One leader who can give people a sense of possibilities. This cannot mean just for a few, but for everyone. Divisions of class, race, income or religion hurt any vision.

What happened to hope?

2011-07-13T06:19:00.000-07:00

In the 50s and 60s there was immense hope and optimism in the USA. It was not partisan, but applied to all Americans, and most of the rest of the world too. America, under a Republican President, started investing massively in infrastructure. The Interstate system, railroads (much of the current rolling stock was acquired during that period), electric grid, airports, all were built or rebuilt. The space program offered hope and inspiration to everyone, in particular budding scientists and engineers, culminating in the 1969 moon landing. Social progress was made, ranging from racial equality activism and legislation and gender equality to gay rights movements starting. While there was push back from the establishment, young people (and some old) took to the streets to push their causes. Woodstock and other youth events transformed the way we looked at the world. The Vietnam war created an anti-war activism which had been minimal during all previous wars. While there were many problems still - poverty, worker safety, voter registration, pay inequality and more, there was a feeling that these would get better.

Today, we see reduced optimism about the future. People see the decline of the USA, and indeed the West. Activism is reduced, even though as many people believe in change. So how can we change the mood? I will address this in my next post.

If you want good ideas, show appreciation for bad ones

2011-07-03T08:17:00.000-07:00

So often people complain that they do not get enough good ideas from subordinates, friends or consultants. Yet, most people have not learned that to ge good ideas you have to show how much you appreciate any ideas. If people give you ideas, which you ignore without explanation, they gradually give you fewer and fewer. This applies even to subordinates or consultants, who are paid to give you ideas.

When you get an idea that you decide not to pursue, you need to thank the originator, explain why you are not accepting it, and best yet, engage in a dialog to make it better. If people are rewarded for ideas, then they will work harder to come up with more.

Now why have I been so dilatory?

2011-07-01T21:29:00.000-07:00

Firstly, I am a regular contributor to the MENG Blend blog, http://blog.mengonline.com/
but I cannot use that as an excuse since it only requires a post a month (next week I have one coming up about the accuracy of the data we use). Really, I suppose that writing regularly maintains momentum, stopping for a while makes it much more difficult to start again. There are so many other priorities in life, from work to family. I have also started getting heavily involved in a new software company which shows great promise. More about that in a later post.

Re-inventing new business models - not only in high tech

2011-04-13T12:55:00.000-07:00

Yesterday Cisco announced that it was closing the Flip video business which it had bought in 2009. Only founded in 2007, it apparently grew, matured, and died in the space of four years. Many other businesses have been obsoleted - the Walkman by the iPod, film by digital cameras. Yet, we also see new business models which re-invigorate the category much as broadband re-invented cable. One of the most interesting is how the curb-side pick up bus is displacing the old point to point bus companies such as Greyhound http://www.businessweek.com/magazine/content/11_16/b4224062391848.htm
I remember in 1969 traveling around America by Greyhound on a 99 day for $99 ticket. Greyhound gradually declined to bankruptcy, but never thought of this. It took entrepreneurs to think of the idea, and then a large company with no vested prestige in the old way to make it successful.

The danger of overpromising - BMW does it

2011-04-11T08:05:00.001-07:00

There is nothing so dangerous as advertising which over-promises. As the saying goes, "nothing kills a bad product faster than good advertising." For example, BMW advertising implies that a BMW Certified pre-owned car is as good as a new one. Imagine the disappointment if this is not true. When a car company relies on a dealer to represent the company, disappointment can soon follow. My son recently bought a 3 year old Certified pre-owned car - his third BMW and the first to be bought from a dealer. His previous ones were older and purchased from private owners, yet he had fewer initial problems than with this one. Yet, all dealers stack the deck by strongly asking customers to only give them a top grade when the car company sends a survey to the customer. This is completely counter-productive, and should not be allowed by the car company. Apple retail stores do not allow it and if they discover it, a firing offense. Yet car companies must be aware of it and therefore are conspiring to invalidate their own research. Even when the customer does give excellent ratings, they are usually resentful about the pressure.
However, as a result of this over-claim, BMW has disappointed and since word of mouth is so powerful the company probably will lose sales, even of new cars. Interestingly, while many companies now track online comments, I have found that the least effective companies do not. I would be intrigued to see if BMW does - I know that Kia pays close attention to online comment.

Why do people talk too much?

2011-04-05T14:44:00.001-07:00

I know a number of people who talk too much. They do not realize that it is very counter-productive. When you are talking you are not listening and cannot learn. You also encourage the other person to drift off and think of something else. They also do not have the chance to ask questions and often instead of persuading them to your opinion, it actually dissuades them. Many of us have the tendency to talk to much, but it is a good habit to deliberately pause and allow the other person to talk or ask questions. In fact it is a good idea to encourage the other person to talk.

Are "independents" in the US really independent, or merely undecided?

2011-04-02T20:25:00.000-07:00

The term "independent," those who are not registered with either major party, is usually used as synonymous with those in the center. This is not necessarily correct. It may be more true that they are simply less interested, or that they have more esoteric views. It is a virtually meaningless term in countries other than the US. In the UK, perhaps the analogous term is "undecided." it would probably be more precise to use a different set of terms in the US.

Life, Liberty and the Pursuit of Happiness. The Best Goals?

2011-03-11T07:28:00.000-08:00

Canada was created by the British North America Act of 1867. It declares the purpose of Government to be to make laws for the Peace, Order, and good Government of Canada. This is a very different philosophy about the purpose of Government. While in the case of Canada, its citizens may be just as free and happy as Americans, it is a set of concepts which is often used to support the idea of a benevolent dictatorship. This is the kind of approach which the Chinese government would use to justify how it works. Arguably, the majority would be quite happy with this system.

Is Government in the US simply less efficient and effective than in other countries?

2011-03-10T22:00:00.000-08:00

Mary Meeker recently produced an analysis which treated the US as a business. http://www.kpcb.com/usainc/USA_Inc.pdf The inescapable conclusion from this is that time and again, the US gets less value from much government spending that other countries do.I have to wonder if this is based on the people in government (and less it is lower status than in most other countries and often lower paid), are the grandfathered processes of government at fault, is the inefficiency of having 50 states duplicate much effort and lose the economies of scale which smaller countries, such as France, can achieve, does the greater dislike of government in the US hinder it from doing its job, or is there some other cause?

In this vein, I must wonder whether US business is as well managed as it seems, or does the scale advantages of operating in a huge country mask inefficiencies?

The problem with US health care, education, law enforcement and much else is the system not the spending

2011-03-04T07:20:00.000-08:00

The US spends more per capital on health care, education, law enforcement and much else, both in actual $s and as a % of GDP than any other Western country, for poorer results than most. Yet, this is rarely questioned. All too often the solution is to spend more money (this probably also applies to military spending too). The issue in most cases is that the entire structure is not viewed as a single system whose interests are aligned with the patient, the student, the person who is supposed to benefit from all the spending. In health care, the doctor, the hospital, the laboratory, the insurance company, the billing company, each only focuses on their own interests. As a result, even it each becomes more efficient, it is as though each of the car component manufacturers are designing the best component without reference to the design of the whole car. The best tires in the world are useless if they do not fit onto the car. However, someone will make money providing adapters to make the tire fit on the car. Now, there is little incentive for each participant to change their actions to benefit the whole, and thereby the patient. As has been said, one person's waste is another's way of making a living. The fact that each primary care physician requires 4 people for administration is of no concern to the insurance company or hospital. Nor are the inefficiencies of the laboratory or equipment manufacturer of concern to the doctor.

The same kind of issues impact so many services in the US. In order to repair this the entire system has to be addressed, and in a way which focuses on the person for whose benefit the spending takes place. Much as Walmart sees the entire supply chain so that it can provide the best product for the lowest cost to the shopper, we have to view the health care, education, law enforcement, transportation, defence and other services to citizens in much the same way.

Why will Apple maintain it's dominance of the tablet market?

2011-03-02T19:14:00.000-08:00

The Apple iPad is expected to continue to maintain a market share well over 75% through 2011. The question in my mind i s why so low? It is an elegant, fast piece of hardware, with a usable screen, the widest supply of software, and the lowest price. I envisage Apple continue to dominate, much as it does in MP3 players. As more and more computing moves to tablets, Apple will gradually become an even bigger player in the total market, particularly as the Air provides powerful computing in a package not much bigger than the iPad.

We talk too much

2011-02-08T06:42:00.000-08:00

I have noticed that in a conversation, many of us (never me of course) talk too much. We are so eager to share our point of view, or what we know that we do not pause to listen to others. I know people who will not remember what others say after a conversation because they are so focused on what they said. If we do not stop talking to listen, then we will never learn anything. If we talk all the time we lose control of the conversation - no one can listen intently for more than a few minutes, so when someone else talks too long, their mind wanders and the speaker is communicating less. Most of us need to learn to speak briefly and listen better. We would be more effective in our business and personal lives.

What I learned from Alfred Kahn

2010-12-30T15:41:00.000-08:00

Alfred Kahn, the father of airline deregulation, and much more, recently died. Around 15 years ago, he told me of his hopes for deregulation and how it would lead to lower prices, greater transparency, more competition, better service and wider choice. As I was then and continue to work intensively in this area, I was very interested in his hopes. I would, though, have to say that in most cases the law of unintended consequences has struck and the results have not been as complete as he envisaged. However, there has been progress in many areas, with the shortcomings being caused by the failure of legislators and regulators to imagine the alternatives.

US education, Healthcare and military spending - a failure of management

2010-12-02T08:36:00.000-08:00

The USA spends twice as much on healthcare and education as most other Western countries, yet gets middle of the pack, at best, results. The US spends more on the military than the next 28 countries combined, we are told, yet, it has problems defeating the Taliban. We hear much discussion about government vs. private spending, yet this may not be the issue. We fear the Government run Chinese companies, yet continue to boast that capitalism is the system which will always win. Perhaps the real problem is that management in the US is just not as good as we think it is. Perhaps we have over-complicated all the processes, and over-educated all the managers.. We also allow politics to play a large part in each of them. Decisions are made on grounds which are frequently only rational in the context of politics. Simplification, if possible, would probably improve each of these areas.

Persistence - so true

2010-11-10T20:06:00.000-08:00

"Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination are omnipotent. The slogan 'press on' has solved and always will solve the problems of the human race." ~ Calvin Coolidge

Is this the best way to predict an election result

2010-10-12T05:19:00.000-07:00

Politicians have long relied on polls. However, we know that they are flawed. Early results from prediction markets seem to be more accurate. Now we can use "listening tools" to do the same. http://www.thedailybeast.com/election-oracle/

Change is good; change is very hard

2010-09-30T13:25:00.000-07:00

We can only get a step change improvement if we change the business model, but this is also a situation in which prior experience may become obsolete. Most people avoid this, so it is the weaker competitors which welcome change more as they have nothing to lose. Market leaders have to force themselves to create change and innovation, whether through technology, business model, distribution channel or regulation.

The BP well is plugged

2010-09-18T08:43:00.001-07:00

While this was at the top of the news for so long, the news cycle has moved on. As a result, the good news, that the well has been permanently plugged, is barely on the news at all. This means that the story, for most people, is incomplete. I suspect that this is the case with so many others, such as the Chilean earthquake, the Australian elections (in America at least), or the Asian tsunami. How many more things do we know incomplete facts about?

The need to re-invent a business

2010-09-07T11:34:00.000-07:00

The world is changing at an accelerating pace. So companies have to change at an accelerating pace. This is an enormous challenge for executives, who are already dealing with the increasing and 24 hour demands on their time. Some of this is best achieved by better processes, but some has to be done via a culture which rewards change and encourages people to constantly improve, not just incrementally, but also step changes.

This tends to be easier for organizations which do not have a vested interest in the way in which things have always been done, but some have demonstrated the ability to re-invent themselves. Apple may be the shining example of how to do this, having changed technology, business model and organization several times.

The US and UK - two nations separated by an uncommon cultural experience

2010-09-03T07:25:00.001-07:00

While the fact that the US and UK are two nations separated by a common language is widely quoted, the fact that there are many cultural experiences which are not shared is rarely mentioned. Going back a few hundred years, both nations share Shakespeare, John Stuart Mill, and Magna Carta. However, it is the more recent experiences which diverge, even now with the Internet as the great leveler. To Americans, the stories of Derek Bentley and Ruth Ellis, which contributed to the end of capital punishment in the UK (itself a great difference) are unknown. In the parallel universe which is Britain Joseph Swan (vs. Thomas Edison) invented the electric lightbulb (patented it a year before Edison and overturned Edison's US patents in US courts). In the UK, John Logie Baird invented TV, not Philo Farnsworth. Marie Stopes led the charge for birth control, not Margaret Sanger, Emily Pankhurst led the fight for women's suffrage. Children grew up watching Bill and Ben the flowerpot men and Blue Peter, and never knew who Beaver was, or anything about the Honeymooners. Britons drove Triumph cars, and Morris Minors, instead of Buicks and Ramblers. Amy Johnson was the woman who pioneered flying, not Amelia Earhart. They drank Corona, Vimto and Tizer instead of RC Cola and Shasta. They poured Heinz Salad Cream on salads, not Kraft salad dressings, drank Heinz soups, ate Mr. Kipling cakes, put Branston pickle on cheese sandwiches, laughed at Morecombe and Wise or Spike Milligan. They listened to the Shipping Forecast on the radio, and watched the Queens speech on TV. Americans watched the Superbowl for their shared experience, gathered together for Thanksgiving dinner, and asked strangers who they thought would win the World Series. Americans grew up with the Sears catalog and shopped at Target, Walgreens, and A&P, while Britons bought their essentials at Marks & Spencers, Boots the Chemists, W. H. Smiths, and the Coop.
Perhaps the Internet will change much of this, but even now, only Britons can experience the BBC's iPlayer, while only Americans can buy a newspaper from a machine.

Management Skills which are not taught, but should be

2010-08-29T05:53:00.000-07:00

Business school does not teach people some of the most fundamental skills which a manager will need. How to give a review, how to fire someone, how to interview a job candidate may be more important at times than the most complex strategic issues. In fact, dealing with people is an area where I suspect that the manager of today is not much better than the manager of 50 years ago even thought there is much more theory on motivation and rewards.

Some of the most simple and basic communication skills are missing in the workplace. I recently saw an example where a manager asked a subordinate to think about a promotion, but gave no timetable so that while the manager assumed a few days, the subordinate assumed a few weeks. When the subordinate did not respond within a few days, the manager assumed he did not want the promotion, which was not correct.

When older people rant against Facebook they make themselves look out of touch

2010-08-20T21:31:00.000-07:00

I do encounter people over 40 who proudly declare that they would never go on Facebook. Yesterday I spoke at length with someone who pronounced Facebook as dangerous and responsible for the breakdown of relationships, corruption of innocents and many, many scams. Most young people and knowledgeable older ones, simply laugh at this and see it as proof that the individual is completely out of touch. I have often wondered how anyone can be proud of being behind the times. The reality is that change will happen, that technology is actually neutral, but that people decide how it is used. To argue against change is like King Canute trying to hold back the waves - doomed to failure and a sign of ignorant arrogance.

I hate "utilize"

2010-08-06T06:57:00.000-07:00

One of the beauties of English is that it is an easy language in which to communicate. Since it typically has words with the same or similar meaning with Latinate or Anglo-Saxon roots, we have a choice. If we want to obfuscate, we can use the Latin word or if we want to be really clear, we can use the Anglo-Saxon one. We can inflame passions, or we can fire people up. It is often the mark of the somewhat, but not to literate to use long words when short words would be better. Announcements on aircraft are classics of the type. An example which is often found is use of the word "utilize," when "use" is easier, simpler and easier to understand.Perhaps some people would rather trade in good communications for the illusion of erudition.

How extraordinary talent can hinder happiness

2010-07-15T21:24:00.000-07:00

Tightly-folded bud,
I have wished you something
None of the others would:
Not the usual stuff
About being beautiful,
Or running off a spring
Of innocence and love -
They will all wish you that,
And should it prove possible,
Well, you're a lucky girl.

But if it shouldn't, then
May you be ordinary;
Have, like other women,
An average of talents:
Not ugly, not good-looking,
Nothing uncustomary
To pull you off your balance,
That, unworkable itself,
Stops all the rest from working.
In fact, may you be dull -
If that is what a skilled,
Vigilant, flexible,
Unemphasised, enthralled
Catching of happiness is called.

bt Philip Larkin

How few people think ahead

2010-06-28T08:43:00.000-07:00

I recently came across a start-up which, although knowing that it would be seeking investors, set itself up as an LLC. It is virtually impossible to have multiple shareholders in an LLC. Any company which seeks them has to be a C-corp, yet converting from an LLC to a C-corp is both time-consuming and expensive. So, thinking ahead would suggest that you set it up as such. It is the same with many things, we do not think about the ultimate consequences of steps we take.

Delegating is very hard

2010-06-11T19:03:00.000-07:00

Delegating is one of the keys to being a good manager, yet very few people can to do it effectively. While micro-managing is deadly, so is abandonment. I see so many people who cannot allow subordinates the freedom they need, while remaining well informed and totally supportive. This is one of the many key skills which are not really taught effectively in any environment, but should be. I will cover more of these in future posts.

Reaching out to people should not be scary

2010-06-06T08:15:00.001-07:00

So many people do not feel comfortable reaching out to people. I have increasingly come to believe that if you come across someone whom you can help, can help you, or is simply interesting, you should never hesitate about contacting them. I see job hunters hesitate about calling people, or they call once but do not persevere. Even if you want to talk to someone interesting, it is often astonishing how much they appreciate someone who approaches them.

Regulation vs. none - the role of government

2010-06-06T08:13:00.001-07:00

There is much evidence that "top down" regulation does not work as well as regulation which appeals to self-interest. For example setting mileage standards for cars is slower and less effective than raising fuel prices through taxes. Yet, so many in government keep on believing in top down regulation. This is because legislators and regulators do not understand how business works, nor its complexity. As a result, regulated companies spend much time learning how to get around the regulations and this results in the "law of unintended consequences."

Peer Group counseling or practitioner coaching improves performance

2010-06-03T11:04:00.000-07:00

Vistage recently looked at growth rates for member companies and found that over 2005 to 2009, growth averaged +5.8% vs. an average decline for D&B companies of 9.2%. This kind of relative performance is true for any company or individual who asks for and receives advice. Whether the advice is through peer counseling as in Vistage or YPO, or individual coaching from a practitioner, who has "been there, done it," the results are better than if someone tries to go it alone. Yet, many people resist seeking advice. Perhaps they see it as a sign of weakness, or perhaps they do not realize how valuable another perspective can be.

Do hyphenated Americans have to reject their heritage to be successful politicians?

2010-06-01T21:07:00.001-07:00

It is interesting that the two most successful Indian-American politicians, Bobby Jindal, Governor of Louisiana, and Nikki Haley, probably next governor of South Carolina, felt compelled to change both name (from Piyush to Bobby and Nimrata to Nikki) and religion (from Hindu to Roman Catholic and Sikh to Methodist). Was this a wish to seem more "American," or simple happenstance. I find it sad that they felt comfortable in walking away from their cultural and religious heritages.

Colleges fail Americans who drop out in large numbers

2010-04-27T03:28:00.000-07:00

While America was in the lead after WW II in setting a college degree as an achievable goal, it has fallen back since. In 2009, only 53% of college students graduated in 6 years or less. Over one third of US students drop out without graduating, and less than one third of the nation ever graduates, less than the UK, the Netherlands, Japan and South Korea. The drop out rate at the University of Cambridge is 0.01%. Americans have a very different attitude to a University education. Dropping out for periods of time is regarded very casually, and failing to complete your education is not the cause of any peer disapproval. The Universities themselves are quick to recommend that the undergraduate take time out for indeterminate periods of time if he or she has any reverses - from poor grades to death in the family. This is not the norm in other countries where perseverance is valued more.

We should value the mistakes people make

2010-04-23T20:44:00.000-07:00

We learn more from our mistakes than from our successes. Our mistakes provide an opportunity for introspection and a need to understand what we did, and why. Successes tend, however, to breed self-congratulation and glossing over what happened. Yet, we often forget that mistakes are important to learning. When interviewing a job candidate, we ask about successes, but rarely about failures. In a resume, we list all our achievements, but not our learning opportunities. Probably, this will never change, but perhaps it will be at least a minor topic in interviews in time.

Why are so many people such poor executives?

2010-04-10T21:44:00.001-07:00

Some of the reasons include:

Inadequate objectivity. Emotion and ego rule while data is neither sought nor considered.
Favoritism. Views people they personally like as more capable than those with whom they do not feel comfortable.
Too short term. Does not have a long-term perspective or believes that immediate results are what count even if they have harmful long-term consequences.
Motivates by fear and criticism rather than by encouragement of productive activities.
Inadequate knowledge and no recognition that there is missing knowledge, which results in over-simplification and over-confidence.
No consideration of unintended consequences. Does not think it through.
Too much managing upward. Sometimes results in the appearance of activity with little real personal risk-taking.
Unwillingness to ask for advice and help. No recognition that other people may have important insights or recommendations.
Impatience. Often goes with "ready, fire, aim."
Narrowness of experience base. Breadth of experience may be more important than depth if it is in large quantity.

The above is a brief listing of reasons why executives have probably not improved in the past 50 years. The McKinsey Quarterly recently published an article which suggested that in CPG companies, the splitting up of responsibilities which used always to belong to the Brand Manager has been harmful.

Even though they usually lose, most resist change

2010-04-10T05:51:00.000-07:00

History shows that people who resist change usually lose. Progress overall tends to win even if the conservative wins occasionally. This is particularly true with the adoption of new technology. Perhaps people do not have the broad perspective to understand that change is inevitable. The vacuum cleaner makers who turned down James Dyson though that they could stop it as the bagless cleaner would require them to change their business model. I see time and time again that companies and many individuals will not even listen to new technology. The adoption curve tells us that there are very few people on the leading edge as "innovators," and while a larger number, early adopters are very much a minority. I suspect that the laggards and those who fight a strong rearguard action against new technology are actually afraid that it will "expose" them. New technology, which they do not know, means that they become vulnerable to charges of ignorance. This is actually the wrong way to tackle the problem. The only way to avoid being seen as ignorant is to be at least an early adopter. New technology will not go away, and if anyone tries to ignore it, someone else will adopt it and make the resistors look foolish, as others have GM with electric and hybrid cars.

Corporate Training Programs are usually only Cosmetic

2010-04-01T15:19:00.000-07:00

Most companies only pay lip-service to training and development of their employees. In the later part of the 20th Century, much effort went into this, but as the contract between employer and employee fell apart, companies started to rely on Business schools and other vocational schools filling the gap. Of course, they do not, so most employees are on their own as companies find it more convenient to hire from outside than promote from within. Since most appraisal systems are complex but not useful, this becomes part of a Kabuki theater performance, where masks are worn to communicate what you want. Managers frquently do not know how to evaluate subordinates, and data shows, again and again, that they rate highly those whom they like, rather than the really excellent. As a result, people soon work out that being liked is the most important and they soon suppress their real personalities and opinions to get ahead.

Companies still reject innovation from outside

2010-03-18T05:04:00.002-07:00

Much is made of open innovation, but it is found far less often than it is claimed. Most large companies remain closed to new ideas from outside, even those that boast about how much they seek it. I have seen many times in the past few years that companies do not simply reject ideas, but more worrying still, are unwilling to even listen to new ideas. It is ironic that the same person who calls for more externally sourced ideas the same day refuses to listen to one which has been proposed in response to the call.

MENG Trend Survey shows how social media challenges business

2010-03-05T05:53:00.000-08:00

The Marketing Executives Networking Group recently carried out a survey among 533 senior Marketing executives. Among other key findings it showed that "social media" frustrates them. While they recognize how important it is, and plan to increase spending on it, they are unsure of how best to use it. This seems to continue the long-time discomfort with tools which are not completely under the control of the marketer. Public Relations is similar in that it is difficult to predict results, can easily backfire, and is tough to measure.

In fact, measurement of social media performance is becoming easier, and new "listening" tools,such as "Wise Window" are providing powerful new ways to track results. Since the tracking is almost instantaneous the company has the ability to fine tune. However, having said that, there is always the possibility of unexpected outcomes and the company has to go with the flow.

Potentially more interesting is the business which is dependent on social media, such as a networking site. For these, social media is not just a tool, but the product. Look for more and more of these to arise.

I am concerned for the competitiveness of the USA

2010-02-27T18:26:00.000-08:00

The US continues to "offshore" manufacturing jobs. Yet, with the most expensive labor in the world, Germany continues to be the most succesful exporter of manufactured goods in the world per capita. Germany has an educational system geared to effectiveness, superb infrastructure, a strong support system for healthcare and the unemployed so that they are not a burden on industry. In the meanwhile, the US educational system is a two tier one, as is the healthcare system. Infrastructure, from roads to rail, bridges to electricity distribution is deteriorating. Most US exports are of commodities or financial services, whereas Germany exports primarily added-value manufactured products. We must learn to do the same.

Sucessful entrepreurs are ignorant..

2010-02-18T14:34:00.000-08:00

Of the really low chances of success they face, and are supremely self-confident. In order to initiate a business, being too aware of the chances of failure is a handicap. Most entrepreneurs underestimate the challenges they will face, but because they have total self-confidence, start the business anyway. Yet the ranks of successful entrepreneurs consist of people like this. Too much experience and knowledge will make a potential business founder hesitate too much. The smart entrepreneur will, however, ensure that more experienced and cautious people are advisers so that some issues may be foreseen better.

The US has less intergenerational mobility than most Western countries

2010-02-10T20:39:00.000-08:00

What a waste of human resources! While the correlation between individual and parental earnings is 0.15 in Denmark, 0.19 in Canada, 0.32 in Spain, it is 0.47 in the USA. This means that your position in life is determined by your parent's position more in the USA than othet Western countries. The children of poor people are destined to be poor. There is huge opportunity to increase the well-being of the US by providing more opportunity to its young citizens.

Back to my Blog - vision

2010-01-29T07:06:00.000-08:00

I have been quiet for a month. If anyone has been wondering why, I have been going through a series of eye surgeries, with one more (and I hope final) one on Monday. It has forced me to think about Vision - not the optical kind, but the imagination kind. Listening to President Obama's speech and reviewing some of the equivalent speeches from other countries, it strikes me that few really signal a long term view of the world. When the architect Gaudi started building the church of the Sagrada Familia in 1883 he knew he would never live to see it completed. He also designed it to have the design completed by others, even though he had the guiding vision. Few people have that kind of far-sightedness, and it seems, even fewer politicians and business people. I see that the founders often do, seeing far beyond their lifetimes, but too many others are simply caretakers, hoping only to see out their time.

The unintended end-result of new airline security

2009-12-27T20:50:00.000-08:00

Each time there is a new attempt at terror on an airliner, security is tightened yet again. Yet each time there is eventually another attempt. Does this mean that security will get tighter and tighter until each of us is traveling naked, blindfolded and chained to the seat for the duration of the flight - with no luggage at all? It is difficult to see how this will ever really come to an end. I have no suggestions for ultimate security, but although I believe that security is critical, I suspect that we need to completely re-think our approach to it.

Build a better mousetrap and the world does not beat a path to your door

2009-12-20T07:16:00.000-08:00

Inventors assume that all they have to do is invent. Yet most new products, however good, fail. In many cases it is because the creator has done an inadequate job of Marketing, Advertising and PR. Even though this is old history, we see that again and again, the would-be entrepreneur comes up short in these areas. It is perhaps the ultimate way in which we distinguish the successful ones from the failures.

It is all to easy to destroy faith in society

2009-12-11T10:24:00.001-08:00

We establish an ideal, a set of rules by which to live a life. We tell young people about justice, fairness, and equity. They grow up to believe that your rewards are proportionate to your efforts. Then, as they grow older, we jerk the rug from under their feet. They see that the undeserving can be successful, and the good can fall by the wayside. They see the justice system, whether for a murderer or a traffic ticket, is unfair. Whether or not you get a traffic ticket is a matter of chance, it is often made difficult and expensive to fight one, and then if it is ever the police officer's word against even several civilians, the civilians lose - if the officer shows up in court! Given the number of death row exonerations, it is obvious that innocent people have been executed - and guilty ones gone free. If it is so difficult in murder cases, where more effort is expended, then the accuracy of less serious crime convictions is clearly even lower. So innocent people are in prison while guilty ones walk free. As this kind of awareness grows in young people, so does respect for the rules of society diminish - and far too little attention is paid to the consequences.

Breadth of experience is more valuable than depth of experience in business

2009-11-27T08:36:00.000-08:00

All the evidence suggests that breadth of experience is more important in a new hire than depth of experience. Someone with depth of experience typically has much of their experience which is out of date. Also, they have usually not experienced different work environments and may have difficulty in adjusting. On the other hand, someone with breadth of experience has demonstrated flexibility and the ability to apply principles to many different situations.

However, most hiring managers value depth of experience more, as they believe that such a person will be able to step into a new job faster. While this could be true, it does not mean that they are performing better a year into the job, or even six months.

Watch out for bogus credentials

2009-11-26T07:03:00.000-08:00

Someone I am coaching recently was interviewed by the CEO of a well known company. Looking up the profile of the CEO on LinkedIn, and the bio on the website, I saw that he had obtained a degree from a University that was new to me. I Googled it and it came up as a diploma mill that had been closed down for fraud fairly recently. We have seen CEOs a Radio Shack and Bausch & Lomb who were discovered to have claimed degrees they had not earned. I have several times interviewed people who were found to have falsified their credentials, yet clearly, people who do this can continue to prosper. Some people say that the falsification of academic credentials is growing as more degree granting institutions proliferate. However, let it me a warning to carry out due diligence before hiring anyone.

Internally driven businesses are everywhere

2009-11-25T08:22:00.001-08:00

Over the past few months, for several reasons I have spoken with a number of businesses in technology, energy, and financial services which think that they know better than their customers what their customers want. It is fascinating to realize that the companies are each dedicated to serving their customers, but believe that because they are the expert, not the customer, they will decide what is good for them. I have seen this in many regulated businesses, where management and regulators each thinking that they should decide what the customer gets without listening to the customer. So the dissatisfaction is high and we wonder why.

The fear of software upgrades

2009-11-19T20:37:00.000-08:00

The other day, as I was going through yet another software upgrade I realized that I was tense. On thinking about it, I realized that if all went well, I would have spent ten to fifteen minutes watching my computer whirr, and if all went well the software would work much as it did before. Perhaps it would have a few more features, but since I really did not know I needed them, the benefit would be marginal. On the other hand, there was a modest risk that it would not work, or interfere with other software, or require updating other elements. The times when the upgrade sticks in our memories are the times when it is a problem. So software upgrades are more dreaded than anticipated eagerly.

The Golden age of everything is 11

2009-11-13T21:06:00.000-08:00

We constantly hear about a "Golden Age." Yet so often the Golden Age to any of us is that which was prevalent when we discovered it at our own age of wonder - usually about 11.

"Micro-culture" is very important to how we behave and react

2009-11-06T13:47:00.000-08:00

Most of the discussion of Malcolm Gladwell's book, "Outliers," has focused on the role which chance plays in success and the fact that each of us seems to need 10,000 hours to become really proficient at anything, whether sports or music, computer programming or chess. Another interesting part of the book discusses the role culture plays in so much else. In cultures where there is a huge status difference between superior and subordinate, there is a tendency for more airline accidents, because the First Officer is less likely to question the Captain. As we might suspect the cultures with the least awareness of heirarch are countries such as Australia, New Zealand, The USA and South Africa, whereas Asian countries have the greatest hierarchical awareness. This will also apply to other areas such as business, government or education. Change will be more difficutl in a culture in which subordinates are reluctant to challenge authority or received wisdom.

Everyone is better than average

2009-10-28T13:34:00.000-07:00

Over 90% of us think we are better drivers than average. Most people think they are better than average at pretty much everything they do. Not you of course, but other people, are mostly wrong.
This is a fundamental human weakness which holds us back. Because we think we are each better than average, we do not listen to others enough. We do not continue to learn once we have learned "enough." The only people who do not suffer from this are those who are in constant, objective, competition with others, such as athletes. But academics, politicians, businesspeople, doctors, and most of us do not have this comparison. So because we are over-confident, we make mistakes. Often, we do not even realize that we made a mistake. This is something to guard against, but is very difficult to do.

Intuition is so often wrong and unintended consequences live

2009-10-25T09:46:00.000-07:00

It has long been thought that in fighting obesity, if we put calories on menus, people would eat fewer. This is intuitively obvious. It is also wrong. Latest research in New York shows that by putting calories on, average calories consumed at lunch went from 425 to 468. The reason seems to be that consumers seem to take knowledge as permission to indulge. This is not an uncommon result when anyone bases a decision on intuition or logic it frequently produces an unintended consequence.

We each communicate differently

2009-10-13T05:04:00.000-07:00

I have noticed that some people check their personal emails as often as several times a day, while others let a week go by without checking it. The latter will check their snail mail more often than email. Some people would rather make a phone call than send an email, while others do most of their communicating by email or SMS. These different attitudes to communication go unsaid. So we can get frustrated when a friend or colleague does not respond in the way we expect or prefer. We ourselves are often not aware that our own styles may be different than others'. Understanding this is important as we are unlikely to change that of others.

Groups which lobby on your behalf without you knowing about it

2009-10-07T14:59:00.000-07:00

Millions of Americans are members of the AAA, AARP, and other similar non-profit organizations. They join because they want to get the benefits they provide. Yet these groups lobby energetically in favor of what they see as their agenda - one which the members do not vote for, and may not even know about. The AARP has a position on everything relating to aging, The AAA lobbies against environmental control (as does the Chamber of Commerce). Yet most members do not participate in this. I have long wondered how this happens. Does this dilute democracy as much as corporate lobbying? Does this make the individual voter even less important?

The US is not doing a great job of looking ahead

2009-09-16T03:39:00.001-07:00

Most of the problems and issues we face today are long-term. We cannot solve them in a month, or even a year. Whether it is alternative energy, health-care, or education, we have to look a generation ahead. When medieval people decided to built a cathedral they knew that they would not live to see it completed, yet they did not hesitate. Today, we have a very different attitude. We will waste years discussing something, but if a task will take years, we are loath to undertake it.

"Within three (3) weeks of arrival, present a detailed and comprehensive business plan for strategic growth including financial projections"

2009-08-31T14:42:00.000-07:00

Now this is "onboarding" on steroids. At least they are honest, but if they really think anyone can prepare a full plan for a business which is new to them in three weeks, they clearly do not understand the issues. Incidentally, the company is a large healthcare provider.

Superb Implementation helps a 180 year old Fortune 50 company, P&G, thrive

2009-08-26T14:31:00.000-07:00

Procter & Gamble is, by the standards of the Fortune 500, an old company. Yet it is a large and growing company. From time to time, the company seems to have lost its way strategically. However, a new leader, and that is another story, arrives to re-focus the company in the right direction. So how does the company make it through these aimless times? It is very clear that it is a consistent and remorseless emphasis on superb execution. No detail it too small. No avenue unexplored for options. The company does better with a bad or no strategy than any other in existence. The secret is no secret, yet it is more difficult for a competitor to copy than any strategy or technology ever devised.

Public Libraries are valuable to Job Seekers

2009-08-03T10:30:00.000-07:00

Public Libraries around the US are improving their services to job seekers. Not only do they have amazing databases and publications - some available from home - but they also have seminars, networking meetings, and a few even have professional career coaches. All of this is available at no cost at all. While the New York Public Library is fantastic, so is Fresno, and Piscataway!

Librarians are eager to help. Many have skills they rarely use, and love to show off what they can find out. I know people who have received company and market profiles as well as introductions to local experts. Most people are not fully aware of the capabilities on offer.

How not to turnaround a business

2009-08-02T19:14:00.000-07:00

Many smart people and companies try to turn around a business, whether one they have owned a long time, or recently bought. I three biggest reasons for failure are: inadequate funding or resources; going against the heritage positioning; and failure to learn from the past, the one over-riding reason is hubris. Frequently, there is no recognition of difficulty or that anyone else can teach us anything. If a company does not suffer from this, then once an effective strategy is in place, the next failure is in execution, such as a tendency to cut corners, or to make people who have never done it before the responsible ones. It can be done, but is rarely done as well as it could be.

There are no more jobs, only assignments!

2009-07-23T15:38:00.001-07:00

Today jobs do not last a lifetime. Whether you are lucky enough to have a new job last ten years, or only a few months, you will be moving on. If a job carries the potential for growth and promotion, as well as mutual commitment, there are no more jobs only assignments. Much like in the Hollywood movie industry, professionals are engaged for an assignment. Over time, some are more trusted by particular people. Being well known and respected is critical as you will sooner or later be needing that reputation. Assume always that you will need to use your network and eperience to find a new one.

Will 1 in 5 US workers soon be unemployed?

2009-07-17T15:26:00.001-07:00

The unemployment figures quoted are the narrowest definition, U3, which only includes those receiving unemployment benefits. A broader definition, U6, includes those who are discouraged and have given up, whose benefits have run out, or who can only find part-time work well below their capabilities. So, in June 2009, while U3 was "only" 9.5%, U6 was 16.5%, or one in 6 Americans. By the time U3 hits its peak, at perhaps 11-12%, U6 may well reach 205, or one in 5 Americans. This is a disaster not seen since the Great Depression (when it almost reached 30%), and number which will scar a generation.

I have learned about executives by coaching them

2009-07-09T06:00:00.001-07:00

I have coached senior executives over many years. The vast majority are smart and hard working, yet few get to the top. I see three key issues which hold many of them back:

The inability to see from other perspectives. Too many executives "lock in" on views and are unwilling or unable to see any other.
Decisions based on emotion rather than fact. Very few executives are able to separate their emotions from the facts.
Recognizing the "art of the possible," within the culture in which they work. Sometimes you get more done by pushing less, while other times you can achieve more by pushing hard.

I see CEOs who are no smarter or hard-working than people lower down in the organization, but those others do not know why they are not CEOs. It takes a third party perspective, if then to point out how to improve.

Why do people keep on putting really old photos of themselves in communications?

2009-07-08T06:32:00.001-07:00

Whether it is in a bio, a realtors' business card, or an online profile, so many people put a photo which is ten years old. I know that it is impossible to keep totally up to date. Even when we have one taken fresh for the purpose, it gets old fast. However, I have seen many which are so old that I do not recognize the person when I meet them. This is totally counterproductive and really rather sad.

We underestimate the difficulty

2009-07-05T06:04:00.001-07:00

Perhaps if we did not underestimate the difficulty of a challenge we would take it on less often. For example, while intelligent people know that very few start-ups succeed, they really believe that theirs will succeed. When people have a sales call which seems to go well they tend to assume that it will result in revenue, whereas few do, and they tend to take longer than anticipated.

CEOs out of touch!

2009-07-03T20:27:00.001-07:00

A couple of days ago I was watching a BBC roundtable of three CEOs, each of whom insisted that employer/employee dynamics had changed for the better. They claimed that employees no longer saw themselves as such, but as members of a team. Even though there have been layoffs and they have no voice in decisions, there is now a feeling that all are partners in a shared enterprise. Following a fairly lengthy discussion, the moderator asked each one how sure they were that the employees felt that way and how did they know. Each said he or she was sure and that was because they spent a lot of time telling them that they were team members. I suspect that the CEOs are completely out of touch with the employees, and are living in a bubble of their own.

Shopper Marketing is only just beginning

2009-06-25T19:31:00.001-07:00

Procter & Gamble calls it the "First Moment of Truth" - the moment at which the shopper is confronted with your product in the store. You may have worked hard at getting the product right, pricing it correctly, advertising it to everyone, but will he or she pick it up, and if so, will he or she buy it?

Increasingly, manufacturers and retailers are studying this moment. They are carrying out research to understand what happens. What are the shopper's thoughts? What are his or her actions? Over the next decade, this will become more and more important. New technology allows much more precise and accurate measurements to be taken.

Deep down, many companies have contempt for their customers

2009-06-22T07:00:00.001-07:00

Many think of their customers as ignorant fools to be manipulated. This can work for a short while, but it always ends up failing. Yet, executives persist in this delusion. Hubris rarely pays off.

Choice is overrated

2009-06-20T06:04:00.000-07:00

Is choice really a consumer demand? It often over-whelms consumers, and it usually results in higher prices. Club stores and deep discounters offer little choice, yet they are the chains which are growing. Traditionally, business has thought that the consume is making a trade-off, but many consumers enjoy shopping at stores like Trader Joe or Costco. Consumers often say they want choice, but act as though it confuses them. Actually, we know that too many choices do confuse consumers and it is often deliberately used by business to get consumers to pay more than they need to.

No can think outside the box on healthcare

2009-06-17T14:02:00.001-07:00

I find the debate on reimbursement fascinating in that it assumes essentially the same system as the US has now. That is a fee for service system which is what resulted in the expensive and inefficient system we have now. For example, I do not see any mention of capitation fees, in which primary care doctors are paid a fee based on the number of patients who sign up with them. The fee is to keep them healthy as well as co-ordinate care provided by specialists. People tend to do what is in their personal economic best interest, and the corollary is that when a large group of people behave in the same way it means that the system rewards this behavior. I do not see any interest outside a small group of experts in taking a look at what does and does not work elsewhere, and no real knowledge so that reinventing the wheel has become a requirement.

The US Healthcare system is like the US Automobile industry

2009-06-16T09:05:00.001-07:00

People spend a lot of time arguing about whether or not there should be a single payer system or not - whether a public option is a requirement or treasonous. Yet, at a far more fundamental level, the US healthcare system is increasingly failing. The system is Balkanized, with each constituency only out for itself. The parts of the system do not work together to serve the consumer. If they made a movie about the fall of the US automotive industry, the UAW could be played by the AMA, GM Management by the insurance companies, dealers by hospitals, and parts suppliers by drug companies. The consumer would play the consumer.

Medical records are routinely lost. More money is spent denying claims and turning down health insurance applicants than providing care for many. Patients are routinely given drugs or treatments which have harmful or dangerous effects on each other. Many patients will see over ten specialists but no one has an overview of the process - doctors are incented to refer rather than to treat. There is substantial evidence that because of this, and the propensity to order unnecessary tests, the more that is spent per patient, the worse the outcome. The system rewards inefficiency and ineffectiveness. Unless something is done, it will only get worse.

The wosh for universal healthcare has existed since Teddy Roosevelt. Harry Truman ran up against the rocks trying to make it happen. Saddest of all is that no one has even been able to get efficiency and effectiveness within the existing system.

Marketing is easy in principle, difficult in practice

2009-06-14T11:35:00.001-07:00

My friend Jonathan will be comforted to know that Marketing is quite simple in principle. However, it is tougher in practice. I have come to the conclusion that good marketing runs counter to human instinct. We want to have our preconceptions confirmed by being able to sell what we think customers should want rather than finding out what they want first. The steps of good marketing are simple, but demand objectivity.

Work out what is the target market.
Find out what it wants, what it will pay, and where it wants to buy.
Design and make the product or service and ensure that it can be done for a price which maximizes demand (not always cheap in the case of luxury goods).
Ensure that it is available to the target market.
Tell people about it.

As the saying goes,"nothing kills a bad product faster than good advertising." If the product does not live up to expectations, there will be no repeat purchase and buyers will tell prospective buyers about it (even faster today with review sites, blogs and other feedback mechanisms).

Yet so often, we see companies decide that what they can make should be sold to customers and then blame the sales force or marketing department for its failure. Most senior executives these days learn the right way of marketing as much as they learn to read a P&L, yet they are regularly overwhelmed by personal hubris. Many failed products were quite predictable, but became investments in management prestige - a violation of Marketing principles!

Why do companies often start with a bad business mocel? Because it is easy!

2009-06-07T05:11:00.001-07:00

I have seen, inherited and continue to see companies knowingly or not, start off with a business model they will regret. Whether it is distributorships which will be ineffective and expensive to change, as GM has discovered, or prime sources of revenue which are the least profitable, as Nielsen and IRI know, it happens again and again. I see it regularly. So why?

Usually, the inferior business model is easy, cheap and fast to enter. Distributors seem to offer immediate market entry at no cost. Some customers are quick to buy than those from other sectors, but will never pay much, and by making them customers, it hurts future profit. Limited distribution seems to restrict sales potential, though it often helps profitability. Companies often start by selling data, thinking that they can add value later, though they never can. Cutting quality or service may seem like a good idea to make a sale, but you can never afford to add it back.

Sales and Marketing are very different

2009-06-05T20:53:00.001-07:00

All too often "Sales" and "Marketing" are paired even so that one person has a "Sales & Marketing" title. This often makes as much sense as pairing Finance and R&D. Peter Drucker, whom many claimed to admire, but also most ignored pointed out that Sales and Marketing were more likely to be natural adversaries than allies. After all, as he said, if Marketing were to do a perfect job, then there would be no need for sales. Yet, even though few people are good at both, the role continues to be confused to the harm of the company.

Why do companies fail? GM; Citibank; Enron?

2009-06-01T09:17:00.000-07:00

Let's face it, as the Greeks said: "those whom the gods want humbled, they first give 40 years of prosperity!" Many companies which look successful on the outside are hollow shells. GM had the seeds of failure within it 30 years ago. Citibank, which would also be in Chapter 11 were it not for a government bailout was in the same situation. Yet a few companies, such as Apple Computer or P&G have revitalized themselves. As Jim Collins in his latest book, How the Mighty Fall, lays out five stages of failure:

Stage 1: Hubris Born of Success

Stage 2: Undisciplined Pursuit of More

Stage 3: Denial of Risk and Peril

Stage 4: Grasping for Salvation

Stage 5: Capitulation to Irrelevance or Death

In retrospect, each is capable of being reversed, yet this rarely happens. Even when warnings are loud and clear, they are rarely listened to.

Are CEOs dull and boring or charismatic and visionary?

2009-05-19T08:00:00.000-07:00

In today's New York Times David Brooks quotes research to show that the most successful CEOs are not visionaries, but dull, detail-oriented and process-driven. Yet in today's Wall Street Journal, Gary Hamel perpetuates the idea that successful CEOs are charismatic visionaries.

In my experience the CEOs who are most charismatic tend to become insulated from the world and long term David Brooks is more right than Gary Hamel. Perhaps we would each like to believe that CEOs are all "big thinkers," but we may be fooling ourselves.

Has KFC lost its mind?

2009-05-10T11:36:00.000-07:00

So KFC puts out a coupon for a free meal - on Oprah even. Then it changes its mind. Of yes, you can drive to a KFC, hand in the coupon and they will mail you another one. Clearly misredemption has been a problem, but they ask you to spend time and money on gas to effectively trade in the original coupon for a new one. Frankly, it seems to be a poorly thought out promotion in the first place, and en even more harmful solution. I would have expected better from KFC.

Making Introductions Effective

2009-05-05T05:16:00.000-07:00

Whether in doing business, making friends, or finding a job, introductions are the lifeblood of social commerce. Some people take short-cuts so much that they are virtually ineffective, or even harmful. Some of the key guidelines for making introductions are:

Understand each person well enough to determine who they would most benefit from meeting. Don't expect them to tell you - they don't know whom you know.
Make the introductions "win-win." Try to make sure that each can get something from it.
Make "warm" introductions. Do not simply ask one party to contact a second using your name, but introduce them - whether in person, on the phone, or by email. You only win if the introduction is successful.
If using LinkedIn, use the phone as well to determine what is the best way to introduce - some people respond better to phone than email, or email better than to LinkedIn.
Follow up. Was the introduction successful? Was one party difficult, rude or simply unresponsive?

JobSerf Index shows jobs posted in March down 65.2% since year ago

2009-05-01T09:04:00.001-07:00

The job search service, JobSerf, has been tracking online postings monthly since January 2008. The index started to fall early last year, a fall which accelerated in July. The fall continues, but early indications are that April could be the first month in a while which shows any improvement. While only about 10% of executive jobs are filled through online postings, this is an indicator. It means that since more people have been chasing fewer jobs, it has been much more difficult to get hired. If this changes, both job-seekers and employers need to be ready.

Recruiters become career coaches

2009-04-18T21:36:00.001-07:00

As the demand for headhunters has dropped precipitously, many have no work. However, the supply of job hunters has climbed as fast. So many recruiters are now focusing on job search advice for a fee. It seems that the ratecard price is around 250-500 per hour. However, most spend a lot of time giving out free advice as part of their business development efforts.

People who will not learn

2009-04-12T07:36:00.001-07:00

I speak at many conferences. I see a real difference between the attitudes I encounter. The psychographics of each conference are different. All too often I see people who are convinced that they have nothing to learn from anyone else. They will ask for introductions, but never for other help. I see that these people succeed at a far lower rate, but they rarely change. I suspect that most people acquire this attitude at a very early age and rarely change.

Vocational Training vs. Education

2009-04-04T21:57:00.000-07:00

There has always been conflict between those who favor vocational training and those who favor broader education. The old apprenticeship focused on vocational training. The apprentice learned how to do a job. While it may not have mattered hundreds of years ago when technology changed slowly, it matters more now when information and skills become obsolete. So it may be more important to "learn how to learn" - a purpose of education. Quite a few years ago, when I was studying Engineering, we calculated that we needed to spend 20% of our time keeping up to date, based on the half-life of knowledge at the time. Most people who go only through vocational training do not realize that so much time has to be spent on continuous learning. As a result. I do favor general education over vocational training. Give me an applied scientist over a technologist any day!

Old Age is no fun for most

2009-03-29T16:53:00.001-07:00

Many of us have an idealized concept of old age. Yet many older people will be alone, bored, in pain, and will die with little dignity. This is partly a function of money, but more importantly it is the result of a society which tries to ignore the existence of old people. The need for assisted living and homes for the aged is an accommodation to the fact that the family does not take on that role. Sadly, many older people could lead productive and interesting lives if attention were to be paid to the issue.

http://women.timesonline.co.uk/tol/life_and_style/women/the_way_we_live/article5980973.ece?token=null&offset=0&page=1

Marketers have no credibility because they play too much

2009-03-21T06:27:00.001-07:00

The gravitation of marketers to online social media without equal focus on measurement leads to a perception of them as not serious business people. Too little emphasis is devoted to prediction and tracking of the effects of social media marketing.