Cool Companies: Germany’s Q-Cells AG

John Hagel reminds us that most businesses are in fact a combination of three very different kinds of models:
Infrastructure management businesses (IMB) – high volume, routine processing businesses – think of contract manufacturers, logistics providers and call center operators as relatively pure play examples of these businesses
Customer relationship businesses (CRB) – businesses that get to know individual customers extremely well and, based on that understanding, help to access relevant resources for these customers – relatively pure play examples of these businesses include large advisory firms that help large enterprise customers decide what form of IT outsourcing to pursue and help these large enterprises to evaluate and negotiate with the right mix of outsourcing service providers.
Product innovation and commercialization businesses (PIC) – businesses that focus on developing innovative new products and services, getting them into market quickly and accelerating adoption of the products – think of semiconductor firms operating without their own fab facilities as relatively pure play examples of these businesses.

I love product innovation businesses – in some ways they are the best hope for the creative individual because they are by very nature more entrepreneurial and performance-based.
Which brings me to one of these companies…
Take a look at Germany’s Q-Cells AG.
Their focus is simple: develop, produce and sell high-performance solar cells. The goal? To drive the photo-voltaic industry to competitiveness.
Don’t forget to check out the Solar Taxi!

Vaclav Havel’s Moral Footprint

Here’s a short quote from Havel’s op-ed piece in the NYTimes:
The end of the world has been anticipated many times and has never come, of course. And it won’t come this time either. We need not fear for our planet. It was here before us and most likely will be here after us. But that doesn’t mean that the human race is not at serious risk. As a result of our endeavors and our irresponsibility our climate might leave no place for us. If we drag our feet, the scope for decision-making — and hence for our individual freedom — could be considerably reduced.
Also:
Maybe we should start considering our sojourn on earth as a loan. There can be no doubt that for the past hundred years at least, Europe and the United States have been running up a debt, and now other parts of the world are following their example. Nature is issuing warnings that we must not only stop the debt from growing but start to pay it back. There is little point in asking whether we have borrowed too much or what would happen if we postponed the repayments.
Time to wake up everybody!!>>

Intelligent Aggregation: TheIssue.com

The previous post on this blog just got picked up by theissue.com – which describes itself as a “blog newspaper.”
The site describes itself as follows:
The Issue is a non-partisan blog newspaper that provides a window to an emerging world of diverse and informed opinions. We cull the blogosphere for its wise insights, probing analyses, and diverse perspectives, drawing together a borderless newspaper. By combining the democratization and diversity of new media with the format and editorial standards of traditional news, we hope to offer a hybrid news source that provides the best of both worlds.
Now I don’t usually believe anyone who says they’re non-partisan (all the Republican attack sites do this), but I do understand the concept. In essence, this is a very valuable function, one that delivers real value to the busy reader.
I think we’re about to see a flood of these blog aggregators in the marketspace – many of them tightly focused on niche topics.
The news media is actually fairly weak at blog aggregation, even though it’s a technique which could help them drive traffic and revenue. Especially if they’d embed videos.

Country Branding: China’s Olympic Nightmare

I always warn my clients that taking a half-baked product to market will actually do more damage than good. Now let’s see if the same applies to nation-branding.
The Olympics will focus the media spotlight on China. But will China actually enjoy the focus? Will the Olympics help or hurt brand China?
The hurt has already begun.
In a recent New York Times article “As China Roars, Pollution Reaches Deadly Extremes”, Joseph Kahn and Jim Yardley tell us that “Environmental degradation is now so severe, with such stark domestic and international repercussions, that pollution poses not only a major long-term burden on the Chinese public but also an acute political challenge to the ruling Communist Party.”
Apparently the government has banned publication of data on the subject for “fear of inciting social unrest.”
But the Kahn and Yardley give us some data nevertheless:
– An internal, unpublicized report by the Chinese Academy of Environmental Planning in 2003 estimated that 300,000 people die each year from ambient air pollution, mostly of heart disease and lung cancer. An additional 110,000 deaths could be attributed to indoor air pollution caused by poorly ventilated coal and wood stoves or toxic fumes from shoddy construction materials, said a person involved in that study.
– Another report, prepared in 2005 by Chinese environmental experts, estimated that annual premature deaths attributable to outdoor air pollution were likely to reach 380,000 in 2010 and 550,000 in 2020.
and:
– A World Bank study done with SEPA, the national environmental agency, concluded that outdoor air pollution was already causing 350,000 to 400,000 premature deaths a year. Indoor pollution contributed to the deaths of an additional 300,000 people, while 60,000 died from diarrhea, bladder and stomach cancer and other diseases that can be caused by water-borne pollution.
Wait, there’s more.
An official study to estimate the environmental cost of China’s runaway economic growth was shut down prematurely.
Greenwashing, apparently, is in. Here’s an absurd story which drives the point home: “Villagers in southwestern China are scratching their heads after an estimated more than $60,000 was spent to paint an entire barren mountainside green.”
Whoo-hoo.
Smog from China is contributing to bad air quality and possibly even affecting the climate in parts of the western United States. The Telegraph also reports: “Almost a third of the air over Los Angeles and San Francisco can be traced directly to Asia…”
And now, to make things worse, they’re probably going to beat up the Chinese enviromentalists who dare to speak up. Again from NYTimes:
“At least two leading environmental organizers have been prosecuted in recent weeks, and several others have received sharp warnings to tone down their criticism of local officials. One reason the authorities have cited: the need for social stability before the 2008 Olympics, once viewed as an opportunity for China to improve the environment.”
Ouch.
Nation Branding 101: Embrace reality.
Maybe we can just cheer everyone up by watching a movie:

Beyond Chatter: Monitoring Online Ecosystems

There’s a flutter of activity in the ad-agency world around the subject of tracking online conversations.
WAPO reports on a tool call Buzz Manager, “a Web-based research tool that trolls sports blogs, message boards, podcasts, YouTube and similar sources, capturing relevant chatter on behalf of a client” — whether a racecar driver, corporate sponsor or sports league. That information is analyzed for content and impact and then translated into a Buzz Rating — a single number on a scale of 1 to 10.
In my view, this is just an online version of the old “press-clipping” service that PR companies would go use in the old days of Web.0!
What they’re missing is a map of the entire ecosystem. How does traffic (and attention) flow through the ecosystem? How many people are in the ecosystem? Which sites are positioned as hubs in the ecosystem? Are they friends or foes?
Wait a minute. That’s why we developed our Ecosystem Intelligence™ Services.

Tiananmen 2.0 – Chinese Blogger Zeng Jinyan

Arianna Huffington calls Zeng Jinyan, a 22-year old dissident blogger, “the online progeny of Wang Wei Lin, the protester who blocked a column of advancing tanks during the Tiananmen Uprising in 1989.”
I still think about Wei Lin – the poor man was executed 14 days after his brave stand.
I will never forget that moment. The bravery, the tragedy.
China will never be a great country, in my eyes, until Wei Lin gets a posthumous medal from the Chinese government.
Someday.
Back to Zeng Jinyan.
Her blog is in chinese, but take a look at this translation.
“House Arrested Again,” says her T-shirt. Read about her funny T-shirt incident, and pray for her life >>

John Hagel’s FAST Strategy Webinar – May 9, 2007

Over the last sixty years, the average lifetime of companies on the S&P 500 list has declined by 80%, from 75 years to 15 years.
John Hagel asks: “What if everything you learned about business strategy is WRONG?”
According to JH3, the basic principles of traditional strategy – the principles still taught at most business schools and company executive education programs – are wrong:
· WRONG: Develop a detailed strategy before moving to operational implementation
· WRONG: Focus on a one to five year time horizon to develop robust strategies.
· WRONG: Pursue a portfolio approach to business initiatives to cope with growing uncertainty.
· WRONG: Strategy is a specialized discipline that needs to be pursued by experts.
So what’s the alternative? Hagel has developed a powerful approach he calls FAST STRATEGY and it’s being used by some of the world’s most successful (and innovative) companies.
On May 9, Hagel’s doing a webinar with StrategyWorld.org titled appropriately – FAST Strategy: How to Get Results in Disruptive Markets

The webinar will provide you with a basic understanding of how to use FAST Strategy in both your business and as a personal tool to improve your career.
Check it out >>
Note: the way I see it is that Hagel normally charges $25,000 for an hour long presentation on strategy. And now you can join the conversation (live) for $1497.00 on May 9. That’s chump change, especially if your company pays for it! See you there>>

Silencing Science

Here’s a press release which made me shake my head in disbelief – again.
Federal climate, weather and marine scientists will be subject to new restrictions as to what they can say to the media or in public, according to agency documents released today by Public Employees for Environmental Responsibility (PEER). Under rules posted last week, these federal scientists must obtain agency pre-approval to speak or write, whether on or off-duty, concerning any scientific topic deemed “of official interest.”
On March 29, 2007, the Commerce Department posted a new administrative order governing “Public Communications.” This new order covers the National Oceanic & Atmospheric Administration (NOAA), which includes the National Weather Service and the National Marine Fisheries Service. Commerce’s new order will become effective in 45 days and would repeal a more liberal “open science” policy adopted by NOAA on February 14, 2006.
Although couched in rhetoric about the need for “broad and open dissemination of research results [and] open exchange of scientific ideas,” the new order forbids agency scientists from communicating any relevant information, even if prepared and delivered on their own time as private citizens, which has not been approved by the official chain-of-command:
* Any “fundamental research communication” must “before the communication occurs” be submitted to and approved by the designated “head of the operating unit.” While the directive states that approval may not be withheld “based on policy, budget, or management implications of the research,” it does not define these terms and limits any appeal to within Commerce;
* National Weather Service employees are allowed only “as part of their routine responsibilities to communicate information about the weather to the public”; and
* Scientists must give the Commerce Department at least two weeks “advance notice” of any written, oral or audiovisual presentation prepared on their own time if it “is a matter of official interest to the Department because it relates to Department programs, policies or operations.”
“This ridiculous gag order ignores the First Amendment and disrespects the world-renowned professionals who work within Commerce agencies,” stated PEER Executive Director Jeff Ruch. “Under this policy, National Weather Service scientists can only give out name, rank, serial number and the temperature.”
The agency rejected a more open policy adopted last year by the National Aeronautics and Space Administration (NASA). The new policy also was rushed to print despite an ongoing Commerce Office of Inspector General review of communication policies that was undertaken at congressional request.
While claiming to provide clarity, the new Commerce order gives conflicting directives, on one hand telling scientists that if unsure whether a conclusion has been officially approved “then the researcher must make clear that he or she is representing his or her individual conclusion.” Yet, another part of the order states non-official communications “may not take place or be prepared during working hours.” This conflict means that every scientist who answers an unexpected question at a conference puts his or her career at risk by giving an honest answer.
Painful. What’s next for our poor scientists? Public floggings and burnings at the stake, perhaps?
You’ve gotta read it to believe it!

The Best Spice Blog on the Web

And the award goes to Spicelines.com – the best spice blog on the web!
Move over Victoria Beckham! The authentic spice girl is Courtenay Beinhorn Dunk.
She describes herself as an “obsessive cook, style fanatic, avid traveler, reluctant writer, food photographer when the light is right…” Judge for yourself by visiting the Spiceline archives >>
Wait, there’s more. Spices, you see, are part of our global heritage.
Says Dunk:
“The more I traveled, the more I noticed that spices and their flavors are global. It’s the local tastes that are different.
“When I ate fish head curry in Singapore I could taste the earthiness of the cumin that flavors carrot salad in Morocco and tomatillo salsa in Mexico. In Paris at Ze Kitchen Galerie, William Ledeuil used flowery Tahitian vanilla to bring out the sea-sweet taste of perfectly fresh sea bass. In the West we think of cinnamon as a dessert spice, yet at La Maison Bleue in Fez, it was the dominant spice in a savory 14th century lamb and couscous dish.”
Wow.
Check out:
Aurora’s Chicken Enchiladas in Tomatillo Sauce with Garlic and Cumin
Salt, Salt Everywhere: The Five Salts You Really Need
Great Reads: Climbing the Mango Trees, a Spicy Memoir of India

There’s even fiction like this bit – SpiceTales: Claire’s Dream
Whew!
I’ve been so buried lately, that I hadn’t notice that Courtenay has actually answered my request for “butter chicken“… the recipe I’ve been experimenting with for over seven years now. I’ll try it this weekend! Thanks, Courtenay!! 🙂

Japanese Whalers vs. Greenpeace

How ironic is this?
“Imagine you’re the skipper of the mother ship of a Japanese whaling fleet. A massive fire disables the ship’s engines in the frigid waters off Antarctica, and one of your crew goes missing. Who would you least like to hear from right now? That’s right — Greenpeace.”
Read all about it>>
So why are these Greenpeacers so upset at the Japanese? The answer may be here >> [Warning: this is not kid friendly stuff!]
In my eyes, this whaling junk is going to hurt all of Brand Japan. Sort of like our misadventure in Iraq has hurt Brand USA…
Surely Japan can do better.

Marshall Goldsmith’s New Book Rises to #1

Every now and then you see someone who does well in the public eye and actually deserves it. I can’t think of a better example than Marshall Goldsmith and his latest book: What Got You Here Won’t Get You There: How Successful People Become Even More Successful.
The book is now the #1 best selling business book in the United States, as ranked by both the Wall Street Journal and USA Today. It also reached that coveted #1 spot in Amazon.com.
Way to go Marshall! For those of you who missed my quick take why you should read this book, go here>>
I’ll be doing a book review shortly.

The Death of the High School Research Paper

The Concord Review flashes a light on the state of the research paper in US high schools.
Apparently fewer and fewer high school students are writing history research papers.
81% of teachers never assign a major research paper (longer than 5000 words). Why? Because no one has the time. Not the teacher, and certainly not the student.
We are still trying to teach a mile wide and an inch deep. And these days, even that mile is shrinking.
Here’s one way to spread the load: make the paper a combined project of both the History and English departments. One grade, two classes.
That’s similar to the way they teach classes in India. You have three classes: History, Geography, and Civics, each one of them a full class, but your “Social Studies” grade was an average of all three. Same with Physics, Chemistry and Biology: three classes, one grade under the title “Science.” And these weren’t watered down classes. They were tough slogs, all of them.
The Concord Review celebrates “varsity academics.” Too bad our culture doesn’t.
The TCR Institute asks:
“When was the last time a college history professor made it her business to find out the names and schools of the best high school history students in the United States?
“When was the last time a college basketball coach sat in his office and waited for the admissions office to deliver a good crop of recruits for the team?
“When was the last time a high school history teacher got scores of phone calls and dozens of visits from college professors when he had an unusually promising history student?
“When was the last time a high school athlete who was unusually productive in a major sport heard from no one at the college level?
“Not one of these things happens, for some good reasons and some not-so-good reasons.”
Let me add to this: “A nation without a knowledge of its history is like a tree without roots.” Wasn’t that Marcus Garvey?
Or let’s put it another way: If Dubya had written his history research paper in high school, chances are we would not be in Iraq today.

Leadership Styles: Warren Buffet vs. Bob Nardelli

US News on Warren Buffet’s style of open communications:
“Every March, more than 20,000 people trek to Omaha for Berkshire Hathaway’s annual meeting. At “Woodstock for Capitalists,” as it is known, Buffett and longtime partner Charlie Munger answer questions for more than four hours. What a contrast to companies like Home Depot, which cut off their meetings in less than 30 minutes, refusing to let shareholders ask any questions.”
Now you know why.
Is this the end of Home Depot?
Read about the US leadership crisis at StrategyWorld.org (my newest site) >>

Her Majesty’s Royal Podcast

I’m laughing and applauding at the same time.
The Queen of England will address the Commonwealth in her traditional Christmas Day speech, stressing the importance of the relationship between the generations. The Royal Podcast (free MP3 download) will be available here >>
BTW, this is the BBC’s doing–they supplied the file for Her Majesty’s Royal Podcast.
Will she start blogging next?
The real question: does anyone care?

Fred Reichheld: “Drop Lengthy Customer Surveys”

Your next customer survey needs to ask one question, just one:

“How likely would you be to recommend our company to a friend?”

That’s what Mr. Loyalty has been saying for some time now.
And:
“Our research indicates that customer-satisfaction numbers fail to show a consistent correlation with actual customer behavior and growth. Many companies have benefited from measuring customer retention, which provides a vital link to profits. Yet, measuring what we call “net promoters”-the percentage of customers who are promoters minus the percentage who are detractors-is even more accurate and makes the economics of retention more practical and achievable.”
I’ve been asked many times by clients what I think about net promoter scoring when it comes to online business. To which I say, net promoter scores are important online, because people trust their peers, more than they trust Gartner and Forrester for example. So start by make this one question the only question you ask in your online survey!

IT Trends for 2007: Process Improvement Leads the Way

Process Improvement comes back into fashion. And this time there ain’t no Michael Hammer!
Here are CIO Insight magazine’s “30 Most Important IT Trends for 2007”:
Strategy
1. Process improvement will be job No. 1
2. IT works on closing the sale
3. Companies make their Web sites more engaging
4. Customer service gets a tune-up
5. Companies put their mounds of data to work
6. Information governance gains momentum
7. CIOs strive to be strategic
Management
8. The division between IT and business will diminish
9. CIO compensation keeps climbing
10. IT organizations will keep growing
11. CIOs struggle to find business-savvy technologists
12. Outsourcing changes IT management
13. Outsourcing growth slows
14. Offshoring shifts from India
15. Companies invest in IT leadership
16. Demonstrating ROI will remain a struggle
Security and Risk
17. No abatement of IT security threats
18. Security concerns turn users away from Windows
19. Security morphs into risk management
20. Compliance achieves what government intended
21. Compliance spurs financial process improvement
Technology
22. The move to a new architecture marches on
23. Enterprise applications start losing their luster
24. Data quality demands attention
25. IT reluctantly embraces Web 2.0
26. IT innovation loses traction
27. Business process management services and software will frustrate users
28. For business intelligence, the best is yet to come
29. IT organizations start going green
30. Dissatisfaction with vendors is on the rise
Have they forgotten anything?
Talent management. Not one mention of how finding and keeping talent is possibly the critical competence for IT, whether in the US, Europe, or India. Why is that? Because people are never a management priority. Come to think of it, wasn’t that the problem with re-engineering?

Jaron Lanier on Internet Mobs

I have never believed in the “wisdom of the crowd.”
Now I feel better because Lanier apparently feels the same way:
“All too many entrepreneurs seem to think that if you reduce the human element, the scheme will become more efficient. Instead of asking people to create videos or avatars, which require creativity and commitment, just watch their clicks, have them take surveys, have them tweak collective works, add anonymous, unconsidered remarks, etc. This trend is lousy, in my opinion, because it encourages people to lose themsleves into groupthink.”
I also like his take on Web 2.0:
“The Web 2.0 notion is that an entrepreneur comes up with some scheme that attracts huge numbers of people to participate in an activity online — like the video sharing on YouTube, for instance. Then you can “monetize” at an astronomical level by offering a way to bring ads or online purchasing to people in your gigantic crowd of participants. What is amazing about this idea is that the people are the value — and they also pay for the value they provide instead of being paid for it. For instance, when you buy something that is advertized, part of the price goes to the ads — but in the new online world, you yourself were the bait for the ad you saw. The whole cycle is remarkably efficient and concentrates giant fortunes faster than any other business scheme in history.”
Ouch.

Snorkeling in a Red Ocean: Yahoo’s ‘Peanut Butter Manifesto’

Read John Hagel’s post “Internet Strategy – Red Ocean or Blue Ocean?” then take a look at this >>
[From the WSJ]
An internal document by Brad Garlinghouse, a Yahoo senior vice president, says Yahoo is spreading its resources too thinly, like peanut butter on a slice of bread. Full text of the document is below.
Three and half years ago, I enthusiastically joined Yahoo! The magnitude of the opportunity was only matched by the magnitude of the assets. And an amazing team has been responsible for rebuilding Yahoo!
It has been a profound experience. I am fortunate to have been a part of dramatic change for the Company. And our successes speak for themselves. More users than ever, more engaging than ever and more profitable than ever!
I proudly bleed purple and yellow everyday! And like so many people here, I love this company
But all is not well. Last Thursday’s NY Times article was a blessing in the disguise of a painful public flogging. While it lacked accurate details, its conclusions rang true, and thus was a much needed wake up call. But also a call to action. A clear statement with which I, and far too many Yahoo’s, agreed. And thankfully a reminder. A reminder that the measure of any person is not in how many times he or she falls down – but rather the spirit and resolve used to get back up. The same is now true of our Company.
It’s time for us to get back up.
I believe we must embrace our problems and challenges and that we must take decisive action. We have the opportunity – in fact the invitation – to send a strong, clear and powerful message to our shareholders and Wall Street, to our advertisers and our partners, to our employees (both current and future), and to our users. They are all begging for a signal that we recognize and understand our problems, and that we are charting a course for fundamental change. Our current course and speed simply will not get us there. Short-term band-aids will not get us there.
It’s time for us to get back up and seize this invitation.
I imagine there’s much discussion amongst the Company’s senior most leadership around the challenges we face. At the risk of being redundant, I wanted to share my take on our current situation and offer a recommended path forward, an attempt to be part of the solution rather than part of the problem.
Recognizing Our Problems
We lack a focused, cohesive vision for our company. We want to do everything and be everything — to everyone. We’ve known this for years, talk about it incessantly, but do nothing to fundamentally address it. We are scared to be left out. We are reactive instead of charting an unwavering course. We are separated into silos that far too frequently don’t talk to each other. And when we do talk, it isn’t to collaborate on a clearly focused strategy, but rather to argue and fight about ownership, strategies and tactics.
Our inclination and proclivity to repeatedly hire leaders from outside the company results in disparate visions of what winning looks like — rather than a leadership team rallying around a single cohesive strategy.
I’ve heard our strategy described as spreading peanut butter across the myriad opportunities that continue to evolve in the online world. The result: a thin layer of investment spread across everything we do and thus we focus on nothing in particular.
I hate peanut butter. We all should.
We lack clarity of ownership and accountability. The most painful manifestation of this is the massive redundancy that exists throughout the organization. We now operate in an organizational structure — admittedly created with the best of intentions — that has become overly bureaucratic. For far too many employees, there is another person with dramatically similar and overlapping responsibilities. This slows us down and burdens the company with unnecessary costs.
Equally problematic, at what point in the organization does someone really OWN the success of their product or service or feature? Product, marketing, engineering, corporate strategy, financial operations… there are so many people in charge (or believe that they are in charge) that it’s not clear if anyone is in charge. This forces decisions to be pushed up – rather than down. It forces decisions by committee or consensus and discourages the innovators from breaking the mold… thinking outside the box.
There’s a reason why a centerfielder and a left fielder have clear areas of ownership. Pursuing the same ball repeatedly results in either collisions or dropped balls. Knowing that someone else is pursuing the ball and hoping to avoid that collision – we have become timid in our pursuit. Again, the ball drops.
We lack decisiveness. Combine a lack of focus with unclear ownership, and the result is that decisions are either not made or are made when it is already too late. Without a clear and focused vision, and without complete clarity of ownership, we lack a macro perspective to guide our decisions and visibility into who should make those decisions. We are repeatedly stymied by challenging and hairy decisions. We are held hostage by our analysis paralysis.
We end up with competing (or redundant) initiatives and synergistic opportunities living in the different silos of our company.
• YME vs. Musicmatch
• Flickr vs. Photos
• YMG video vs. Search video
• Deli.cio.us vs. myweb
• Messenger and plug-ins vs. Sidebar and widgets
• Social media vs. 360 and Groups
• Front page vs. YMG
• Global strategy from BU’vs. Global strategy from Int’l
We have lost our passion to win. Far too many employees are “phoning” it in, lacking the passion and commitment to be a part of the solution. We sit idly by while — at all levels — employees are enabled to “hang around”. Where is the accountability? Moreover, our compensation systems don’t align to our overall success. Weak performers that have been around for years are rewarded. And many of our top performers aren’t adequately recognized for their efforts.
As a result, the employees that we really need to stay (leaders, risk-takers, innovators, passionate) become discouraged and leave. Unfortunately many who opt to stay are not the ones who will lead us through the dramatic change that is needed.
Solving our Problems
We have awesome assets. Nearly every media and communications company is painfully jealous of our position. We have the largest audience, they are highly engaged and our brand is synonymous with the Internet.
If we get back up, embrace dramatic change, we will win.
I don’t pretend there is only one path forward available to us. However, at a minimum, I want to be part of the solution and thus have outlined a plan here that I believe can work. It is my strong belief that we need to act very quickly or risk going further down a slippery slope, The plan here is not perfect; it is, however, FAR better than no action at all.
There are three pillars to my plan:
1. Focus the vision.
2. Restore accountability and clarity of ownership.
3. Execute a radical reorganization.
1. Focus the vision
a) We need to boldly and definitively declare what we are and what we are not.
b) We need to exit (sell?) non core businesses and eliminate duplicative projects and businesses.
My belief is that the smoothly spread peanut butter needs to turn into a deliberately sculpted strategy — that is narrowly focused.
We can’t simply ask each BU to figure out what they should stop doing. The result will continue to be a non-cohesive strategy. The direction needs to come decisively from the top. We need to place our bets and not second guess. If we believe Media will maximize our ROI — then let’s not be bashful about reducing our investment in other areas. We need to make the tough decisions, articulate them and stick with them — acknowledging that some people (users / partners / employees) will not like it. Change is hard.

2. Restore accountability and clarity of ownership

a) Existing business owners must be held accountable for where we find ourselves today — heads must roll,
b) We must thoughtfully create senior roles that have holistic accountability for a particular line of business (a variant of a GM structure that will work with Yahoo!’s new focus)
c) We must redesign our performance and incentive systems.
I believe there are too many BU leaders who have gotten away with unacceptable results and worse — unacceptable leadership. Too often they (we!) are the worst offenders of the problems outlined here. We must signal to both the employees and to our shareholders that we will hold these leaders (ourselves) accountable and implement change.
By building around a strong and unequivocal GM structure, we will not only empower those leaders, we will eliminate significant overhead throughout our multi-headed matrix. It must be very clear to everyone in the organization who is empowered to make a decision and ownership must be transparent. With that empowerment comes increased accountability — leaders make decisions, the rest of the company supports those decisions, and the leaders ultimately live/die by the results of those decisions.
My view is that far too often our compensation and rewards are just spreading more peanut butter. We need to be much more aggressive about performance based compensation. This will only help accelerate our ability to weed out our lowest performers and better reward our hungry, motivated and productive employees.
3. Execute a radical reorganization
a) The current business unit structure must go away.
b) We must dramatically decentralize and eliminate as much of the matrix as possible.
c) We must reduce our headcount by 15-20%.
I emphatically believe we simply must eliminate the redundancies we have created and the first step in doing this is by restructuring our organization. We can be more efficient with fewer people and we can get more done, more quickly. We need to return more decision making to a new set of business units and their leadership. But we can’t achieve this with baby step changes, We need to fundamentally rethink how we organize to win.
Independent of specific proposals of what this reorganization should look like, two key principles must be represented:

Blow up the matrix.
Empower a new generation and model of General Managers to be true general managers. Product, marketing, user experience & design, engineering, business development & operations all report into a small number of focused General Managers. Leave no doubt as to where accountability lies.

Kill the redundancies.
Align a set of new BU’s so that they are not competing against each other. Search focuses on search. Social media aligns with community and communications. No competing owners for Video, Photos, etc. And Front Page becomes Switzerland. This will be a delicate exercise — decentralization can create inefficiencies, but I believe we can find the right balance.
I love Yahoo! I’m proud to admit that I bleed purple and yellow. I’m proud to admit that I shaved a Y in the back of my head.
My motivation for this memo is the adamant belief that, as before, we have a tremendous opportunity ahead. I don’t pretend that I have the only available answers, but we need to get the discussion going; change is needed and it is needed soon. We can be a stronger and faster company – a company with a clearer vision and clearer ownership and clearer accountability.
We may have fallen down, but the race is a marathon and not a sprint. I don’t pretend that this will be easy. It will take courage, conviction, insight and tremendous commitment. I very much look forward to the challenge.
So let’s get back up.
Catch the balls.
And stop eating peanut butter.

Leadership Secrets Revealed: A Tip for Nancy Pelosi

There isn’t much in the world that hasn’t happened before (except for man-made global warming) that we can’t learn about by reading our history.
Nancy Pelosi recent misstep is not the end of the world. She was being true to her heart, which is not a bad thing in itself.
But there is a lesson to be learned for all leaders from Pelosi: when you get to a higher position, you must grow with it.
And that’s the lesson from Marshall Goldsmith’s new book: What Got You Here Won’t Get You There: How Successful People Become Even More Successful.
Executives who hire Goldsmith for one-on-one coaching pay $250,000 for the privilege. With this book, his help is available for 1/10,000th of the price.
Anyone who thinks they’re a leader should read it carefully.

Truth, Fear and Consequences

Unthinking respect for authority is the greatest enemy of truth.
I think it was Einstein who said that, but I could be wrong. Doesn’t matter, it sounds good.
These days we live in a culture of fear: fear in classroom, in the boardroom, at work, in society, sometimes even at home. But what are we afraid of?
Here’s a list of fears:
– fear of failure
– fear of criticism
– fear of ridicule
– fear of sickness
– fear of loss
– fear of old age
– fear of death
The list just goes on. You name it, and our minds can find a way to fear it.
Bottom line, we are afraid of the truth.
Why? Because it destroys the story we have created for ourselves. It shakes up the cocoon of complacency we spin around ourselves.
That’s what I like about one of my clients – Byron Katie. She is fearless. Nothing that happens in the world seems to daunt her. So how do you live without fear? Where would you be without your fear, as KT might say?
If you weren’t afraid, what would you do? What actions would you take? Well, go ahead and do it. Accept the consequences. Life is too short to be scared.
Recently I got in trouble with a client when I told them I didn’t like something they were patting themselves on the back about. I knew that my criticism could end my relationship with the client. And yet I did it anyway. Why? Because in the long run, the truth now is better than truth later. Better to hurt a few feelings now than to let the marketplace hurt the client later. And if the client doesn’t understand, that’s fine too. I accept the consequences.
Wasn’t it Blake who said: “opposition is true friendship”? Maybe that’s going too far.

The $40 Entree: Restaurants & Dynamic Pricing

From the NYTimes, an article on pricing in the restaurant and hospitality industry.
“Forty is the new 30,” says Richard Coraine, the chief operating officer of Union Square Hospitality Group, which recently began charging $42 for a 1¾-ounce appetizer portion of lobster at lunchtime at the Modern in New York. Ten percent of its lunch patrons order the dish, it says.
Apparently the $40 entree is migrating from high-end NY restaurant menus to your average restaurant chain across the nation.
Here’s the real story – the use of analytics to increase profit margins:
But what makes the rise of the $40 entree so significant is not just the price creep, it’s the sophisticated calculation behind it. A new breed of menu “engineers” have proved that highly priced entrees increase revenue even if no one orders them. A $43 entree makes a $36 one look like a deal.
“Just putting one high price on the menu will take your average check up,” said Gregg Rapp, one such consultant. “My mom taught me to never order the most expensive thing on the menu, but you’ll order the second.”
With just a few keystrokes, restaurateurs can now digitally view the entire history of a dish: how the lamb sold around this time last year, whether it did better when paired with squash or risotto, and how orders rose or fell when the price went from $39 to $41.
With a few more clicks and a new stack of paper in the office printer, the menu can be revised to test new prices.

Meanwhile the obesity problem just keeps growing. Wonder if that would end if McDonald’s switched to $40 dollar entrees…?!
Speaking of analytics, to learn more about “Competing on Analytics” check out Tom Davenport’s free webinar on the subject – October 31, 2006.

Invisible Science

Scientists are working hard to become invisible.
They can stop working so hard. Our current age hates math and science – and soon scientists will be extinct. They certainly are an endangered species in the US!

Carr: Top-Down Disruptive Innovation

Our friend Nicholas “IT Doesn’t Matter” Carr has written a wonderful essay on top-down innovation – the anti-thesis to Clayton Christensen’s Innovator’s Dilemma.
Carr tells us that top-down disruptive innovations actually outperform existing products when they’re introduced, and they sell for a premium price rather than at a discount.
Exhibit A: Apple’s iPod. Writes Carr: “The iPod upped the performance stakes immensely. By using a tiny hard drive to store music, it allowed people to carry hundreds, even thousands, of songs with them at all times. Its price, starting at $399, was equally eye-opening — the price of a mid-range component stereo system.”
Good point.
The article definitely make you think that there is some benefit (profit) to providing high-end products. So why are so few companies doing it?
Because to compete on quality is much more difficult than competing on cost. For one, it takes imagination. And even more important, it takes execution. And that takes good leadership. Would Apple be succeeding without Jobs? Look what happened to Apple when they had that guy from Pepsi running it. Almost destoyed the company.
So it’s not that easy. But top-down innovation can be done. The question is: can it be sustained?

REWIND: Remember The Cluetrain?

Some of my clients (both B2B and B2C) need to go back in time and read The Cluetrain Manifesto.
Here are the classic “95 Theses” (try substituting the word “market” with “customers” or “friends”):
95 Theses
————————————————-
1. Markets are conversations.
2. Markets consist of human beings, not demographic sectors.
3. Conversations among human beings sound human. They are conducted in a human voice.
4. Whether delivering information, opinions, perspectives, dissenting arguments or humorous asides, the human voice is typically open, natural, uncontrived.
5. People recognize each other as such from the sound of this voice.
6. The Internet is enabling conversations among human beings that were simply not possible in the era of mass media.
7. Hyperlinks subvert hierarchy.
8. In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new way.
9. These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.
10. As a result, markets are getting smarter, more informed, more organized. Participation in a networked market changes people fundamentally.
11. People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.
12. There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone.
13. What’s happening to markets is also happening among employees. A metaphysical construct called “The Company” is the only thing standing between the two.
14. Corporations do not speak in the same voice as these new networked conversations. To their intended online audiences, companies sound hollow, flat, literally inhuman. ‘
15. In just a few more years, the current homogenized “voice” of business—the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th century French court.
16. Already, companies that speak in the language of the pitch, the dog-and-pony show, are no longer speaking to anyone.
17. Companies that assume online markets are the same markets that used to watch their ads on television are kidding themselves.
18. Companies that don’t realize their markets are now networked person-to-person, getting smarter as a result and deeply joined in conversation are missing their best opportunity.
19. Companies can now communicate with their markets directly. If they blow it, it could be their last chance.
20. Companies need to realize their markets are often laughing. At them.
21. Companies need to lighten up and take themselves less seriously. They need to get a sense of humor.
22. Getting a sense of humor does not mean putting some jokes on the corporate web site. Rather, it requires big values, a little humility, straight talk, and a genuine point of view.
23. Companies attempting to “position” themselves need to take a position. Optimally, it should relate to something their market actually cares about.
24. Bombastic boasts—”We are positioned to become the preeminent provider of XYZ”—do not constitute a position.
25. Companies need to come down from their Ivory Towers and talk to the people with whom they hope to create relationships.
26. Public Relations does not relate to the public. Companies are deeply afraid of their markets.
27. By speaking in language that is distant, uninviting, arrogant, they build walls to keep markets at bay.
28. Most marketing programs are based on the fear that the market might see what’s really going on inside the company.
29. Elvis said it best: “We can’t go on together with suspicious minds.”
30. Brand loyalty is the corporate version of going steady, but the breakup is inevitable—and coming fast. Because they are networked, smart markets are able to renegotiate relationships with blinding speed.
31. Networked markets can change suppliers overnight. Networked knowledge workers can change employers over lunch. Your own “downsizing initiatives” taught us to ask the question: “Loyalty? What’s that?”
32. Smart markets will find suppliers who speak their own language.
33. Learning to speak with a human voice is not a parlor trick. It can’t be “picked up” at some tony conference.
34. To speak with a human voice, companies must share the concerns of their communities.
35. But first, they must belong to a community.
36. Companies must ask themselves where their corporate cultures end.
37. If their cultures end before the community begins, they will have no market.
38. Human communities are based on discourse—on human speech about human concerns.
39. The community of discourse is the market.
40. Companies that do not belong to a community of discourse will die.
41. Companies make a religion of security, but this is largely a red herring. Most are protecting less against competitors than against their own market and workforce.
42. As with networked markets, people are also talking to each other directly inside the company—and not just about rules and regulations, boardroom directives, bottom lines.
43. Such conversations are taking place today on corporate intranets. But only when the conditions are right.
44. Companies typically install intranets top-down to distribute HR policies and other corporate information that workers are doing their best to ignore.
45. Intranets naturally tend to route around boredom. The best are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation.
46. A healthy intranet organizes workers in many meanings of the word. Its effect is more radical than the agenda of any union.
47. While this scares companies witless, they also depend heavily on open intranets to generate and share critical knowledge. They need to resist the urge to “improve” or control these networked conversations.
48. When corporate intranets are not constrained by fear and legalistic rules, the type of conversation they encourage sounds remarkably like the conversation of the networked marketplace.
49. Org charts worked in an older economy where plans could be fully understood from atop steep management pyramids and detailed work orders could be handed down from on high.
50. Today, the org chart is hyperlinked, not hierarchical. Respect for hands-on knowledge wins over respect for abstract authority.
51. Command-and-control management styles both derive from and reinforce bureaucracy, power tripping and an overall culture of paranoia.
52. Paranoia kills conversation. That’s its point. But lack of open conversation kills companies.
53. There are two conversations going on. One inside the company. One with the market.
54. In most cases, neither conversation is going very well. Almost invariably, the cause of failure can be traced to obsolete notions of command and control.
55. As policy, these notions are poisonous. As tools, they are broken. Command and control are met with hostility by intranetworked knowledge workers and generate distrust in internetworked markets.
56. These two conversations want to talk to each other. They are speaking the same language. They recognize each other’s voices.
57. Smart companies will get out of the way and help the inevitable to happen sooner.
58. If willingness to get out of the way is taken as a measure of IQ, then very few companies have yet wised up.
59. However subliminally at the moment, millions of people now online perceive companies as little more than quaint legal fictions that are actively preventing these conversations from intersecting.
60. This is suicidal. Markets want to talk to companies.
61. Sadly, the part of the company a networked market wants to talk to is usually hidden behind a smokescreen of hucksterism, of language that rings false—and often is.
62. Markets do not want to talk to flacks and hucksters. They want to participate in the conversations going on behind the corporate firewall.
63. De-cloaking, getting personal: We are those markets. We want to talk to you.
64. We want access to your corporate information, to your plans and strategies, your best thinking, your genuine knowledge. We will not settle for the 4-color brochure, for web sites chock-a-block with eye candy but lacking any substance.
65. We’re also the workers who make your companies go. We want to talk to customers directly in our own voices, not in platitudes written into a script.
66. As markets, as workers, both of us are sick to death of getting our information by remote control. Why do we need faceless annual reports and third-hand market research studies to introduce us to each other?
67. As markets, as workers, we wonder why you’re not listening. You seem to be speaking a different language.
68. The inflated self-important jargon you sling around—in the press, at your conferences—what’s that got to do with us?
69. Maybe you’re impressing your investors. Maybe you’re impressing Wall Street. You’re not impressing us.
70. If you don’t impress us, your investors are going to take a bath. Don’t they understand this? If they did, they wouldn’t let you talk that way.
71. Your tired notions of “the market” make our eyes glaze over. We don’t recognize ourselves in your projections—perhaps because we know we’re already elsewhere.
72. We like this new marketplace much better. In fact, we are creating it.
73. You’re invited, but it’s our world. Take your shoes off at the door. If you want to barter with us, get down off that camel!
74. We are immune to advertising. Just forget it.
75. If you want us to talk to you, tell us something. Make it something interesting for a change.
76. We’ve got some ideas for you too: some new tools we need, some better service. Stuff we’d be willing to pay for. Got a minute?
77. You’re too busy “doing business” to answer our email? Oh gosh, sorry, gee, we’ll come back later. Maybe.
78. You want us to pay? We want you to pay attention.
79. We want you to drop your trip, come out of your neurotic self-involvement, join the party.
80. Don’t worry, you can still make money. That is, as long as it’s not the only thing on your mind.
81. Have you noticed that, in itself, money is kind of one-dimensional and boring? What else can we talk about?
82. Your product broke. Why? We’d like to ask the guy who made it. Your corporate strategy makes no sense. We’d like to have a chat with your CEO. What do you mean she’s not in?
83. We want you to take 50 million of us as seriously as you take one reporter from The Wall Street Journal.
84. We know some people from your company. They’re pretty cool online. Do you have any more like that you’re hiding? Can they come out and play?
85. When we have questions we turn to each other for answers. If you didn’t have such a tight rein on “your people” maybe they’d be among the people we’d turn to.
86. When we’re not busy being your “target market,” many of us are your people. We’d rather be talking to friends online than watching the clock. That would get your name around better than your entire million dollar web site. But you tell us speaking to the market is Marketing’s job.
87. We’d like it if you got what’s going on here. That’d be real nice. But it would be a big mistake to think we’re holding our breath.
88. We have better things to do than worry about whether you’ll change in time to get our business. Business is only a part of our lives. It seems to be all of yours. Think about it: who needs whom?
89. We have real power and we know it. If you don’t quite see the light, some other outfit will come along that’s more attentive, more interesting, more fun to play with.
90. Even at its worst, our newfound conversation is more interesting than most trade shows, more entertaining than any TV sitcom, and certainly more true-to-life than the corporate web sites we’ve been seeing.
91. Our allegiance is to ourselves—our friends, our new allies and acquaintances, even our sparring partners. Companies that have no part in this world, also have no future.
92. Companies are spending billions of dollars on Y2K. Why can’t they hear this market timebomb ticking? The stakes are even higher.
93. We’re both inside companies and outside them. The boundaries that separate our conversations look like the Berlin Wall today, but they’re really just an annoyance. We know they’re coming down. We’re going to work from both sides to take them down.
94. To traditional corporations, networked conversations may appear confused, may sound confusing. But we are organizing faster than they are. We have better tools, more new ideas, no rules to slow us down.
95. We are waking up and linking to each other. We are watching. But we are not waiting.
Special thanks to Levine, Locke, Searls & Weinberger. And John Hagel before them.

The New Evangelical Environmentalism

Bill Moyers’ Is God Green? Religion & Environment helped me see that not all evangelicals reject reality.
“A new holy war is growing within the conservative evangelical community, with implications for both the global environment and American politics. For years liberal Christians and others have made protection of the environment a moral commitment. Now a number of conservative evangelicals are joining the fight, arguing that man’s stewardship of the planet is a biblical imperative and calling for action to stop global warming.
“But they are being met head-on by opposition from their traditional evangelical brethren who adamantly support the Bush administration in downplaying the threat of global warming and other environmental perils. The political stakes are high: Three out of every four white evangelical voters chose George W. Bush in 2004. “Is God Green?” explores how a serious split among conservative evangelicals over the environment and global warming could reshape American politics.”
Here’s the declaration which splits the evangelicals.
Watch these clips:
Is God Green? Richard Cizik National Asssociation of Evangelicals
Rick Warren’s quote
How Cizik fell off his horse on the way to Damascus
Jesus didn’t do a cost-benefit analysis before he decided to act. So why are we getting hung-up with “ExxonMobil-ese”?

Christian Double Loop Marketing™

I always knew that Double Loop Marketing™ facilitates “putting butts in seats” as one of my clients likes to say, but this is just too funny:
“Themed Web sites create buzz, drive attendance swell for two churches”
Exhibit A: mylamesexlife.com
Result: attendance up 70 percent
Exhibit B: mymarriagesucks.info
Result: attendance up 68 percent
Note the use of TV ads and billboards to get attention for the websites.
Although this is not full-fledged Double Loop Marketing™, it is a start. In some ways, this is identical to the microsites the pharma companies keep pitching on TV.
The one problem I see is that these are not sustainable “thought-leadership” based campaigns.

Customer Driven Innovation

In strategy + business, Michael Schrage writes about how involving customers in the innovation process can add value to new product designs:
“In industry after industry, a shared model for innovation adoption is emerging. The most valuable “platforms” — the tools and technologies used internally to discover, design, and test new products and services — can be creatively and cost-effectively sold or lent to customers, clients, and prospects. Customers get a chance to “try before they buy.” They can adopt and test new ideas and technologies before investing in them. And the purveyors of new technologies rapidly gain insights into the potential value of their wares — insights that might otherwise take years to gather.”
His examples: Cisco, P&G, and Goldman Sachs.
Cisco: “Cisco had several highly sophisticated customers who weren’t satisfied with “solutions”; they wanted to see and understand the thought process behind the company’s proposals. Were these architectures really the best or most cost-effective that Cisco had to offer? So Cisco began showing these customers its in-house simulations. And the customers, in turn, expressed a desire to adapt these design, configuration, and optimization models for their own use.”
P&G: “Procter & Gamble has begun to share some of its computer modeling and market research techniques with Wal-Mart, Tesco, and other distribution channels. This includes the celebrated P&G “moment of truth” research, which tracks consumer attitudes at two critical times: when the product is chosen and when it is used. To be sure, many of P&G’s biggest distributors are also rivals that offer their own private labels, so there are risks to sharing this type of proprietary innovation platform with them. But the rewards are even greater: They include ongoing close ties with retailers, who often share their own innovative tools for analyzing (for example) how store layout, shelf space, and signage influence purchase decisions. Together, these manufacturers and retailers can develop a relationship that transcends any particular innovation tool or technique.”
Goldman Sachs: “In the early days, we would run simulation after simulation demonstrating that our instruments would help them better hedge their risks,” acknowledges one former Goldman Sachs and Salomon Brothers executive. “But, frankly, they didn’t fully trust either us or our simulations. It wasn’t until we started giving them the simulation tools we used ourselves that they took us seriously.” … These free simulators proved to be the most profitable innovation that the Goldman Sachs derivatives group launched. Soon, clients began asking for custom derivatives and other tailored instruments. “Without the simulators, customers would never have known what to ask for, and we would never have thought to ask,” recalls the bank executive. Yet, despite its success, this innovation appeared nowhere in the bank’s R&D budget or prospectus. It was only a tacit, not an explicit, locus of value creation.
But not everyone is so keen to share their knowledge. The article tells us about Eric von Hippel’s hypothesis that internal innovators frequently view customer innovators as rivals who might undermine their creative role.
Ultimately, we’re talking about demand innovation. A double loop model enables you to learn how to extend your offerings into your customers’ internal value chain, creating a platform for profitable growth. It’s also about identifying unmet customer needs – by going upstream or downstream as dictated by your industry’s value configuration…

The Marketing Survey Rebellion

So many U.S. residents refuse to participate in marketing-research surveys that it has become increasingly difficult to get reasonably reliable consumer data — a problem of potentially catastropic implications for the big marketers who spend tens or even hundreds of millions of dollars for such research each year. “This is a problem of stunning scope,” explains reporter Jack Neff of Advertising Age.
Great news for Double Loop Marketing™ marketers like me. Why? Because marketers can test their new ideas, products, and services on a double loop site in a far more efficient and effective way than traditional surveys.
Listen to the audio interview here >>
I disagree with their take on online surveys – because they’re doing the same old junk.
What needs to happen is this: market researchers need to get off their cushions and start observing people in the marketplace and marketspace. Digital anthropology: the observation of online behavior. That’s it.
The market research community needs to get into Web 2.0, period.

Michael Porter’s Business Competitiveness Index: US #1

The United States and Germany remain atop the latest Business Competitiveness Index, with China continuing to slip in the rankings while India ascends, according to a report released from Michael Porter’s Institute for Strategy and Competitiveness.
The U.S., ranked number one in four of the last six years, scored high on business environment, financial markets, and innovative capacity. Germany, number two, benefited from its orientation on exports, the unique competitive positions of its companies, and the quality of its legal and regulatory framework.
Rounding out the Top 10 were Finland, Switzerland, Denmark, Netherlands, Sweden, United Kingdom, Japan, and Hong Kong SAR. Hong Kong increased its ranking by seven, in part by strengthening management education, the efficacy of government boards, and local availability of process machinery, the ISC reported.
Other high-income nations increasing their ranking included Qatar, Norway, and Malta. Advanced economies on the decline included Cyprus, the Czech Republic, Taiwan, and France.
China, which has retreated in the rankings since 2002, fell nine spots to 64, according to the ISC. “This year’s decline was driven especially by higher levels of corruption, weaker assessment of buyer sophistication, and concerns about labor relations,” the study found. Also contributing were weak property rights, poor board governance, and low quality of management education. “Overall it is clear that euphoria about China is moderating as the realities of its competitiveness become more apparent,” the report concludes.
India moved up four rankings to 27, aided by improvements in its business environment and increasing levels of company sophistication.
Hmmmm. Porter’s Index should be put next to a Global Standard of Living Index. Then we can learn which countries are the best for both employees and employers. But that might be too much to ask from Harvard. Maybe Yale could do that…

Video: Chad and Steve from YouTube


I love it. The geeks at Google give the geeks at YouTube 1.6 billion dollars – and this is how they announce it. Brilliant!
Now let’s see if they can find a business model. [I think they will – will they go beyond Adwords and Adsense?]

TIME: The Secret Letter From Iraq

Reading this in TIME magazine made me very, very sad. And angry.
The worst politicians are killing our best soldiers. If there is an “Evangelical” God, George W and his buddies are going to be roasted in the inner circle of Hell.
This is what happens when you have a government that deceives good people who just aren’t too bright. [Whoops, there goes habeas corpus. We’ve thrown ourselves back into the 13th century.]
Here’s the secret letter from Iraq:
Written last month, this straightforward account of life in Iraq by a Marine officer was initially sent just to a small group of family and friends. His honest but wry narration and unusually frank dissection of the mission contrasts sharply with the story presented by both sides of the Iraq war debate, the Pentagon spin masters and fierce critics. Perhaps inevitably, the “Letter from Iraq” moved quickly beyond the small group of acquantainaces and hit the inboxes of retired generals, officers in the Pentagon, and staffers on Capitol Hill. TIME’s Sally B. Donnelly first received a copy three weeks ago but only this week was able to track down the author and verify the document’s authenticity. The author wishes to remain anonymous but has allowed us to publish it here — with a few judicious omissions.
All: I haven’t written very much from Iraq. There’s really not much to write about. More exactly, there’s not much I can write about because practically everything I do, read or hear is classified military information or is depressing to the point that I’d rather just forget about it, never mind write about it. The gaps in between all of that are filled with the pure tedium of daily life in an armed camp. So it’s a bit of a struggle to think of anything to put into a letter that’s worth reading. Worse, this place just consumes you. I work 18-20-hour days, every day. The quest to draw a clear picture of what the insurgents are up to never ends. Problems and frictions crop up faster than solutions. Every challenge demands a response. It’s like this every day. Before I know it, I can’t see straight, because it’s 0400 and I’ve been at work for 20 hours straight, somehow missing dinner again in the process. And once again I haven’t written to anyone. It starts all over again four hours later. It’s not really like Ground Hog Day, it’s more like a level from Dante’s Inferno.
Rather than attempting to sum up the last seven months, I figured I’d just hit the record-setting highlights of 2006 in Iraq. These are among the events and experiences I’ll remember best.
Worst Case of Déjà Vu — I thought I was familiar with the feeling of déjà vu until I arrived back here in Fallujah in February. The moment I stepped off of the helicopter, just as dawn broke, and saw the camp just as I had left it ten months before — that was déjà vu. Kind of unnerving. It was as if I had never left. Same work area, same busted desk, same chair, same computer, same room, same creaky rack, same… everything. Same everything for the next year. It was like entering a parallel universe. Home wasn’t 10,000 miles away, it was a different lifetime.
Most Surreal Moment — Watching Marines arrive at my detention facility and unload a truck load of flex-cuffed midgets. 26 to be exact. We had put the word out earlier in the day to the Marines in Fallujah that we were looking for Bad Guy X, who was described as a midget. Little did I know that Fallujah was home to a small community of midgets, who banded together for support since they were considered as social outcasts. The Marines were anxious to get back to the midget colony to bring in the rest of the midget suspects, but I called off the search, figuring Bad Guy X was long gone on his short legs after seeing his companions rounded up by the giant infidels.
Most Profound Man in Iraq — an unidentified farmer in a fairly remote area who, after being asked by Reconnaissance Marines if he had seen any foreign fighters in the area replied “Yes, you.”
Worst City in al-Anbar Province — Ramadi, hands down. The provincial capital of 400,000 people. Lots and lots of insurgents killed in there since we arrived in February. Every day is a nasty gun battle. They blast us with giant bombs in the road, snipers, mortars and small arms. We blast them with tanks, attack helicopters, artillery, our snipers (much better than theirs), and every weapon that an infantryman can carry. Every day. Incredibly, I rarely see Ramadi in the news. We have as many attacks out here in the west as Baghdad. Yet, Baghdad has 7 million people, we have just 1.2 million. Per capita, al-Anbar province is the most violent place in Iraq by several orders of magnitude. I suppose it was no accident that the Marines were assigned this area in 2003.
Bravest Guy in al-Anbar Province — Any Explosive Ordnance Disposal Technician (EOD Tech). How’d you like a job that required you to defuse bombs in a hole in the middle of the road that very likely are booby-trapped or connected by wire to a bad guy who’s just waiting for you to get close to the bomb before he clicks the detonator? Every day. Sanitation workers in New York City get paid more than these guys. Talk about courage and commitment.
Second Bravest Guy in al-Anbar Province — It’s a 20,000-way tie among all these Marines and Soldiers who venture out on the highways and through the towns of al-Anbar every day, not knowing if it will be their last — and for a couple of them, it will be.
Worst E-Mail Message — “The Walking Blood Bank is Activated. We need blood type A+ stat.” I always head down to the surgical unit as soon as I get these messages, but I never give blood — there’s always about 80 Marines in line, night or day.
Biggest Surprise — Iraqi Police. All local guys. I never figured that we’d get a police force established in the cities in al-Anbar. I estimated that insurgents would kill the first few, scaring off the rest. Well, insurgents did kill the first few, but the cops kept on coming. The insurgents continue to target the police, killing them in their homes and on the streets, but the cops won’t give up. Absolutely incredible tenacity. The insurgents know that the police are far better at finding them than we are — and they are finding them. Now, if we could just get them out of the habit of beating prisoners to a pulp…
Greatest Vindication — Stocking up on outrageous quantities of Diet Coke from the chow hall in spite of the derision from my men on such hoarding, then having a 122mm rocket blast apart the giant shipping container that held all of the soda for the chow hall. Yep, you can’t buy experience.
Biggest Mystery — How some people can gain weight out here. I’m down to 165 lbs. Who has time to eat?
Second Biggest Mystery — if there’s no atheists in foxholes, then why aren’t there more people at Mass every Sunday?
Favorite Iraqi TV Show — Oprah. I have no idea. They all have satellite TV.
Coolest Insurgent Act — Stealing almost $7 million from the main bank in Ramadi in broad daylight, then, upon exiting, waving to the Marines in the combat outpost right next to the bank, who had no clue of what was going on. The Marines waved back. Too cool.
Most Memorable Scene — In the middle of the night, on a dusty airfield, watching the better part of a battalion of Marines packed up and ready to go home after over six months in al-Anbar, the relief etched in their young faces even in the moonlight. Then watching these same Marines exchange glances with a similar number of grunts loaded down with gear file past — their replacements. Nothing was said. Nothing needed to be said.
Highest Unit Re-enlistment Rate — Any outfit that has been in Iraq recently. All the danger, all the hardship, all the time away from home, all the horror, all the frustrations with the fight here — all are outweighed by the desire for young men to be part of a band of brothers who will die for one another. They found what they were looking for when they enlisted out of high school. Man for man, they now have more combat experience than any Marines in the history of our Corps.
Most Surprising Thing I Don’t Miss — Beer. Perhaps being half-stunned by lack of sleep makes up for it.
Worst Smell — Porta-johns in 120-degree heat — and that’s 120 degrees outside of the porta-john.
Highest Temperature — I don’t know exactly, but it was in the porta-johns. Needed to re-hydrate after each trip to the loo.
Biggest Hassle — High-ranking visitors. More disruptive to work than a rocket attack. VIPs demand briefs and “battlefield” tours (we take them to quiet sections of Fallujah, which is plenty scary for them). Our briefs and commentary seem to have no effect on their preconceived notions of what’s going on in Iraq. Their trips allow them to say that they’ve been to Fallujah, which gives them an unfortunate degree of credibility in perpetuating their fantasies about the insurgency here.
Biggest Outrage — Practically anything said by talking heads on TV about the war in Iraq, not that I get to watch much TV. Their thoughts are consistently both grossly simplistic and politically slanted. Biggest Offender: Bill O’Reilly.
Best Intel Work — Finding Jill Carroll’s kidnappers — all of them. I was mighty proud of my guys that day. I figured we’d all get the Christian Science Monitor for free after this, but none have showed up yet.
Saddest Moment — Having an infantry battalion commander hand me the dog tags of one of my Marines who had just been killed while on a mission with his unit. Hit by a 60mm mortar. He was a great Marine. I felt crushed for a long time afterward. His picture now hangs at the entrance to our section area. We’ll carry it home with us when we leave in February.
Best Chuck Norris Moment — 13 May. Bad Guys arrived at the government center in a small town to kidnap the mayor, since they have a problem with any form of government that does not include regular beheadings and women wearing burqahs. There were seven of them. As they brought the mayor out to put him in a pick-up truck to take him off to be beheaded (on video, as usual), one of the Bad Guys put down his machine gun so that he could tie the mayor’s hands. The mayor took the opportunity to pick up the machine gun and drill five of the Bad Guys. The other two ran away. One of the dead Bad Guys was on our top twenty wanted list. Like they say, you can’t fight City Hall.
Worst Sound — That crack-boom off in the distance that means an IED or mine just went off. You just wonder who got it, hoping that it was a near miss rather than a direct hit. Hear it practically every day.
Second Worst Sound — Our artillery firing without warning. The howitzers are pretty close to where I work. Believe me, outgoing sounds a lot like incoming when our guns are firing right over our heads. They’d about knock the fillings out of your teeth.
Only Thing Better in Iraq Than in the U.S. — Sunsets. Spectacular. It’s from all the dust in the air.
Proudest Moment — It’s a tie every day, watching our Marines produce phenomenal intelligence products that go pretty far in teasing apart Bad Guy operations in al-Anbar. Every night Marines and Soldiers are kicking in doors and grabbing Bad Guys based on intelligence developed by our guys. We rarely lose a Marine during these raids, they are so well-informed of the objective. A bunch of kids right out of high school shouldn’t be able to work so well, but they do.
Happiest Moment — Well, it wasn’t in Iraq. There are no truly happy moments here. It was back in California when I was able to hold my family again while home on leave during July.
Most Common Thought — Home. Always thinking of home, of my great wife and the kids. Wondering how everyone else is getting along. Regretting that I don’t write more. Yep, always thinking of home.
I hope you all are doing well. If you want to do something for me, kiss a cop, flush a toilet, and drink a beer. I’ll try to write again before too long — I promise.

Ethanol versus Exxon: Wake Up!


Biofuels: Think Outside The Barrel
Vinod Khosla is a venture capitalist considered one of the most successful and influential personalities in Silicon Valley. He was one of the co-founders of Sun Microsystems and became a general partner of the venture capital firm Kleiner, Perkins, Caufield & Byers in 1986. In 2004 he formed Khosla Ventures.
Listen to his presentation to the nerds at Google, and you start getting mad at our politicians and oil-businesses.
Why can’t we do this? Because Exxon doesn’t want to. Listen, even the CIA wants to do this. I don’t often agree with those guys, but the facts are simple. Watch the video and call your congresswoman.
In Brazil, VW is debating whether they even need to manufacture “gas-only” cars anymore. Wake up, America. We can create some real wealth in the Mid-West instead of funding the Saudis.