The Economist:
The pressure Microsoft is facing in its core businesses is similar to one confronted by IBM—another firm that was once synonymous with computing. At the beginning of the 1990s IBM had to face up to the shift from a computing world dominated by mainframes to one dotted by personal computers. In this new world hardware became a low-margin commodity and Microsoft’s operating system took the privileged position. Today, Microsoft still dominates the PC market. But like IBM before it, today’s giant knows that its position is under threat.
and
So Microsoft now plans to graft subscriptions, downloadable add-ons and advertisements on to its core products. Again, it portrays this as an opportunity to open up new revenue streams, rather than a defensive tactic. “There are three ways to pay for anything in this business: ads, transactions and subscriptions,” says Craig Mundie, one of Microsoft’s chief technology officers. “You’ll see the company offer a full range of different ways to buy our product.” The difficulty will be getting the timing right, so that new products do not undermine existing cash cows.
For now, however, too many Microsoft managers are still measured by their success with yesterday’s business model—selling boxes of software. Microsoft is still formulating its response to the rise of online software. As one former Microsoft executive explains: the company’s problems are not just technical but organisational. “It has a vision but not a roadmap; it can see the peaks but doesn’t know how to cross the foothills to get there.”
C’mon Gates! Show us what MS can do – get funky! You guys are too big, too top-driven, too reactive… Unleash your employees! Start leading! Let’s see some disruptive innovation from within…
Read the article>>
Steel Pulse & Damian Marley: No More Weapons
Sing along:
We don’t really need…
There’s no time to beat around the BUSH
Now all the world is living in fear
The consequence a great disaster zone
The thought alone I cannot bear
And now that war has raised its ugly head
And all I can predict is woe yeah!
This claim for power paints the city red
I isolate the Status Quo.
We no want no weapons of mass destruction
We no want no weapons of mass destruction
No we no really need
No no weapons no
This has got to be the final conflict
Bestowed upon humanity
So much for a global coalition
A false sense of security
We are just pawns in the scheme of things
No matter what our race or creed
Survivors of this holocaust
We international refugees
We no want no weapons of mass destruction
We no want no weapons of mass destruction
No no no lethal weapons
No no lethal weapons
No weapons no weapons
This crave for power
Is one disaster, destruction’s in the air
These ego trips, by heads of states, who giveth not a care
For all your children and all my children
The future’s in despair
No no no No no no
We do want no weapons no…
Rules for Innovators?
From the Talentism blog, a great list for wanna-be innovators:
(1) Innovation starts with “And”
(2) Not Just Smart, But Always Focused
(3) Make Sure You Have the “No But” Critic in the Room
(4) Build Crappy Prototypes Fast
(5) Don’t Listen To Customers, Watch Them
(6) If It’s Right, Change It
(7) Sell it Like you Play It
(8) Iterate ‘Till You Drop
(9) Appoint One Person Bad Cop and Follow Their Command
(10) Innovation Is About Learning, not Genius
Here’s one more:
(11) Constancy of Purpose!
Cartoon: Help The Rastafarian get to Zion

The Ship of (April) Fools
Question: Where does one find the most incompetent collection of managers and leaders in America today?
Answer: The Bush White House.
Ouch!
Doug Smith, one of America’s smartest consultants, doesn’t mince words…
Ram Charan: Got Business Acumen?
What is business acumen?
In the latest S+B, Ram Charan writes:
“the art of business acumen: linking an insightful assessment of the external business landscape with the keen awareness of how money can be made — and then executing the strategy to deliver the desired results.”
and:
“…the ability to position their companies advantageously while operating within the same external landscape as their competitors.”
So how does one go about getting these insights into the external business landcape?
Charan suggests you ask yourself a series of six questions, and explore the ideas with colleagues and peers:
1. What is happening in the world today?
2. What does it mean for others?
3. What does it mean for us?
4. What would have to happen first (for the results we want to occur)?
5. What do we have to do to play a role?
6. What do we do next?
Hmmmm.
Read the article >>
Doug Smith on Brand Delivery
Writes Doug Smith on his blog:
“…brand is the upshot of three related human actions: promising, delivering and experiencing. Employees (a category that includes executives) promise and deliver. Customers (and investors who are not actively involved in companies) experience. Most of us have yet to catch up with the latter two of these activities: delivery and experience. Because we are bombarded with logos and symbols and promises, we tend too rarely to look beyond the promising to the delivery and experience.
“That is, until the experience is entirely out of line with the promise.”
Read the post to get what “brand delivery” really means. Smith also gives us an example – FOX vs. WaPo – guess which one has a consistent brand delivery…
Vinod Khosla’s Eco-imagination
From my other favorite, the Economist:
A lesson he [Vinod Khosla] learned from India, he says, is that one has to think big: “Unless you influence the lives of at least a million people, it simply doesn’t matter.”
And:
“Mr Khosla is particularly enthused by “cellulosic” ethanol, a highly efficient way of making fuel from agricultural waste. President Bush touted this new technology in his recent state-of-the-union speech, suggesting that it may come to market in six years. In typically impatient form, Mr Khosla wants to halve that gestation period. Anyone who spends time with him is liable to be hit with his well-researched but mind-numbing PowerPoint presentation on ethanol—unveiled with the affection that some men reserve for pictures of their grandchildren.”
But this is not a joke, guys. It’s the next wave of capitalism- natural capitalism, as some call it.
Wake up Amrica. It is time.
Again:
“It is easy to dismiss this enthusiasm as the irrelevant obsession of a rich hobbyist or the harmless utopianism of a capitalist who has made his pile. But the big oil companies are certainly not taking Mr Khosla lightly. The oil industry is funding a lavish counter-campaign to his ballot initiative called “Californians Against Higher Taxes”. Perhaps the best reason to take Mr Khosla seriously is that his professional success and Republican leanings mean that he has the ears of powerful people. He has been making the rounds, from the White House and Capitol Hill to the World Economic Forum at Davos and the TED conference (a big annual gathering for top venture capitalists), banging the drum for ethanol. Before Larry Page, Google’s co-founder, attended a recent TED conference in Monterey, California, he was sceptical about ethanol. After hearing Mr Khosla, he decided to help fund the cause. “When have you ever seen greens, farmers and guys like me and Larry on the same page?” demands Mr Khosla.”
Read the article >>
The BBC as a Global Online Brand
“The BBC is both an entrepreneurial anomaly and an illustration of the importance of branding on the internet. It has received considerable financial backing – from a government- mandated licence fee rather than venture capitalists. But its growth stems mostly from the reputation the BBC has earned through its old-media activities in radio and television.” writes the FT.
Darn right. The BBC has done what Rupert Murdoch could not (and would not) – it has become the online brand for trusted news, blowing away the pathetic efforts of the CBS, ABC, NBC, and FOX.
Why? Because the BBC is truly more fair and balanced. And it has something no American network has- constancy of purpose.
Read the article >>
PS- The other global British success story is the good old Economist.
Did Tele Santana Save Brazil from itself?
A moving tribute to the man who saved the “beautiful game” >>
The Top 30 CEOs: Where’s H. Lee Scott?
From Barron’s via Business Innovation Insider:
Warren Buffett, Berkshire Hathaway
Kenneth Chenault, American Express
George David, United Technologies
Lew Frankfort, Coach
Richard Fuld, Lehman Brothers
Jeffrey Immelt, General Electric
Steven Jobs, Apple Computer
Richard Kovacevich, Wells Fargo
A.G. Lafley, Procter & Gamble
Arthur Levinson, Genentech
John Mackey, Whole Foods
Raymond Mason, Legg Mason
Angelo Mozilo, Countrywide Financial
Anne Mulcahy, Xerox
Steven Reinemund, Pepsico
Glenn Renwick, Progressive
Steven Roth, Vornado Realty
Bob Simpson, XTO Energy
James Sinegal, Costco Wholesale
Robert Toll, Toll Brothers
My question: Where’s H. Lee Scott?
The Idea Ecosystem
How’s this for an idea –
“An internal market where any employee can propose that the company acquire a new technology, enter a new business or make an efficiency improvement. These proposals become stocks, complete with ticker symbols, discussion lists and e-mail alerts. Employees buy or sell the stocks, and prices change to reflect the sentiments of the company’s engineers, computer scientists and project managers – as well as its marketers, accountants and even the receptionist.”
Idea marketplaces are happening now at Rite-Solutions and InnoCentive, according to Here’s an idea: Let everyone have ideas, an article in the IHT:
The next frontier is to tap the quiet genius that exists outside organizations – to attract innovations from people who are prepared to work with a company, even if they don’t work for it. An intriguing case in point is InnoCentive, a virtual research and development lab through which major corporations invite scientists and engineers worldwide to contribute ideas and solve problems they haven’t been able to crack themselves.
InnoCentive, based in Andover, Mass., is literally a marketplace of ideas. It has signed up more than 30 blue-chip companies, including Procter & Gamble, Boeing and DuPont, whose research labs are groaning under the weight of unsolved problems and unfinished projects. It has also signed up more than 90,000 biologists, chemists and other professionals from more than 175 countries. These “solvers” compete to meet thorny technical challenges posted by “seeker” companies. Each challenge has a detailed scientific description, a deadline and an award, which can run as high as $100,000.
“We are talking about the democratization of science,” said Alpheus Bingham, who spent 28 years as a scientist and senior research executive at Eli Lilly & Company before becoming the president and chief executive of InnoCentive. “What happens when you open your company to thousands and thousands of minds, each of them with a totally different set of life experiences?”
InnoCentive, founded as an independent start-up by Lilly in 2001, has an impressive record. It can point to a long list of valuable scientific ideas that have arrived, with surprising speed, from faraway places. In addition to the United States, the top countries for solvers are China, India and Russia.
It’s all about your company’s innovation ecosystem. Do you have one? How do you build one? How do you participate in the ecosystem which exists already?
How to make China even richer
That’s the Economist for you- always prodding us to think a step ahead.
What would really happen in China if the “peasants owned their own land”?
CEO Pay – A Systemic Failure
Doug Smith has a brilliant post on his blog about Treasury Secretary John Snow who “maintains the widening gap between high-paid and low-paid Americans reflects a labor market efficiently rewarding more-productive people.”
What a joke.
The Economist spoke to this a while back. As did good old Drucker, who called executive pay “looting.”
See here>>
Branding in Asia: Interview with Martin Roll
I recently interviewed Martin Roll, the founder and CEO of VentureRepublic, a leading strategic advisory firm out of Singapore. Roll is the author of the ground-breaking bestseller Asian Brand Strategy: How Asia Builds Strong Brands.
Here are his 10 steps to building an Asian brand:
1. The CEO needs to lead the brand strategy work
2. Build your own model, as not every model suits all
3. Involve your stakeholders including the customers
4. Advance the corporate vision
5. Exploit new technology
6. Empower people to become brand ambassadors
7. Create the right delivery system
8. Communicate!
9. Measure the brand performance
10. Adjust relentlessly and be ready to raise your own bar all the times
For details, read the interview at the Zyman Institute of Brand Science website >>
Jonathan Schwartz on Open Source
“…fighting against things like open source is, in a way, fighting gravity.”
in this article on Always-On >>
Soccer Blog: The Start of Something
Well, I’m just doing it.
After years of talking and discussion- our soccer blog is finally launched. We have 8 contributors signed up from various parts of the world.
Let me know if you’re interested in contributing. Prerequisite: you must know who Edson Arantes do Nascimento is!
$3.8 Billion? – March Madness and Lost Productivity
From a press release by Challenger, Gray & Christmas, Inc.:
The decision by CBS Sports to offer free online viewing of men’s college basketball games during the annual NCAA championship tournament (better known as March Madness) is great news for hoops fans but it could be disastrous for the nation’s employers, who will undoubtedly see a significant drop-off in worker productivity.
The cost of this productivity drain could prove to be substantial over the three weeks of the tournament. In fact, for every 13.5 minutes workers spend on the Internet watching March Madness games, which begin on March 16, the cost to employers in lost wages alone exceeds $237 million. Over the 16 days of the tournament that could reach as high as $3.8 billion, according to an estimate released Tuesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
Now they should do an analysis on worldwide lost productivity caused by this summer’s World Cup (that’s soccer)!
BTW, the March-Madness-online link is here. Just click on the “Continue on to CSTV.com” button…
Bratz vs. Barbie: The Power of Strategic Innovation
In her book – The Power of the Purse: How Smart Businesses Are Adapting to the World’s Most Important Consumers – Women, Fara Warner describes how the MGA’s Bratz line of brash, but fashionable, dolls toppled Mattel’s Barbie — by focusing on consumer behavior.

Says Warner:
– Don’t allow personal history or preconceived ideas of women — in this case, young girls — to overshadow insight from consumers.
– Read, listen, and respond to correspondence from consumers — not their parents. MGA used this strategy to create a line of boy Bratz.
– Consider the consumers’ whole world, not just the time when they are using the product. This strategy was used to expand Bratz beyond dolls and clothes.
– Move with consumer trends, not industry timelines. MGA creates new clothing lines for its dolls every three to six months, not just once a year.
Read this chapter — Toppling Barbie: Bratz Predict the Future — from her book.
The Bratz example serves as a powerful reminder that companies like Mattel cannot afford to rest on their laurels, but need to selectively forget the past, as Vijay Govindarajan would say.
Fara has also started a blog. Her introductory post is here.
Maybe there’s a place for an environmental girl doll one of these days — perhaps a Jane Goodall do-good activist doll? I mean why do toy companies focus on girls, malls and fashion? All right, I know the answer… it was a rhetorical question.
The Time is Now for “Narrowcasting”
According to the NYTimes:
“In the last six months, major media companies have received much attention for starting to move their own programming online, whether downloads for video iPods or streaming programs that can be watched over high-speed Internet connections.
“Perhaps more interesting — and, arguably, more important — are the thousands of producers whose programming would never make it into prime time but who have very dedicated small audiences. It’s a phenomenon that could be called slivercasting.”
The web has always been a narrowcasting medium.
More from the article:
Discovery Communications, which has been a master of the current system, creating 15 different cable channels including Animal Planet and Discovery Health, is now exploring even more specialized services over the Internet. One will be introduced tomorrow for $9.95 a month. It will offer 30,000 video clips excerpted from its library of documentaries and other educational programs to help grade school and high school students with their homework. In the future, other services will offer content focused on narrow topics in travel, science and health.
Discovery, Mr. Hendricks says, is in a good position to create such services because of its large archive. “We have a wealth of programming just related to cancer, just related to Alaska and so on,” he said.
In addition to offering Internet distribution, Discovery will start to broadcast some of these programs late at night on its regular channels and encourage people to record them, he said.
To be sure, there are doubters. “I’ve never been a believer that we should create channels for all these niches like beach volleyball,” said John Skipper, a senior vice president of ESPN, a unit of the Walt Disney Company. “They just don’t pencil out. Because if you have 12,000 people, you can’t afford to do it. And if you can’t afford to do it, you can’t make any money on it.”
One reason that ESPN has shied away from this sort of niche programming, he said, is that its brand stands for a level of high-quality visual production that would be difficult for small channels to afford. Indeed, ESPN has been investing millions of dollars to produce programs in high-definition formats.
But reticence by some big media companies is making room for independent programmers to explore all sorts of niches.
Hmmm. ESPN doesn’t get it… perhaps Steve Jobs will wake them up.
Here’s the article in full>>
Carr’s Sixth Force: Public Interest (Are you listening, Wal-Mart?)
Since we’ve been talking about Wal-Mart this week, I figured we should look at the big picture. Nicholas Carr’s article on the 6th force (take that, Michael Porter!) is a good start:
“What’s the greatest strategic challenge facing Wal-Mart today? It’s not competition from other retailers. Although the world’s biggest merchant certainly keeps a close eye on rivals like Target and Best Buy, its domination of the industry seems secure for the time being. It’s not pressure from suppliers. Wal-Mart has most makers of consumer packaged goods at its beck and call. And it isn’t the whims of buyers. Shoppers show little desire to abandon their favorite store and its dirt-cheap prices.
No, Wal-Mart’s biggest worry today is the public interest.”
Great insight:
“As the experiences of Wal-Mart and other companies reveal, this traditional approach ignores the changing nature of the public interest and its expanding influence over companies’ financial results. The public does not want a company’s charity. It wants a chunk of its profits. The public interest, in other words, now expresses itself as an economic interest — the public has become an active competitor in the struggle to seize the bounties of the marketplace. As a result, the way businesses think about strategy needs to change. If a company clings to the old assumptions, it may be putting its future at risk.”
I don’t think the public wants “a chunk of its profits” tho; I think the public wants businesses to be fair- fair to the community and country it is in. Think economic justice. Not just social justice.
Read Carr’s essay >>
PS – Does your company have an active ecoimagination?
Nicholas Carr: The Editor beats the Wisdom of the Crowd
Nicholas “IT Doesn’t Matter” Carr talks about human editors versus algorithms in his post, “The editor and the crowd“:
“As the comparison of Memeorandum and Slashdot shows, the software-mediated crowd is a poor replacement for a living, breathing, thinking editor. But there are other things that the crowd is quite good at. The crowd tends, for instance, to be much better than any of its members at predicting an uncertain future result that is influenced by many variables. That’s why stock market indexes beat individual money managers over the long run. It’s easy to understand why. First, there are limits to the ability of any single individual to understand the complexities in how a large number of variables change and influence one another over time. Second, every individual’s thinking is subject to idiosyncracies and biases – some conscious, some not. The crowd aggregates all individuals’ knowledge about variables while balancing out their personal biases and idiosyncracies. It’s not the “wisdom” of crowds that makes crowds useful, in other words; it’s their fundamental mindlessness. What crowds are good for is producing average results that are not subject to the biases and other quirks of human minds.”
and
“That’s also why search engines work pretty well with algorithms (until, at least, they begin to be gamed by individuals using their minds): They produce the result that best suits what the average searcher is looking for. You don’t want generally used search engines to reflect individual biases. Indeed, one of their main jobs is to filter out those biases – and revert to the average.”
But, says Carr:
“But that’s also why algorithms don’t work very well as editors. With an editor, you don’t want mindlessness; you want mindfulness. A good editor combines an understanding of what the audience wants with a healthy respect for the idiosyncracies of his own mind and the minds of others. A good editor doesn’t aim to provide a bland “average result”; he wants to wander widely around the average, at times even to strike out in the opposite direction altogether. The mindless crowd filters out personality along with idiosyncracy and bias. The mindful editor is all about personality.”
I couldn’t agree with Carr more. And that’s why one of my latest projects is 100% human powered; powered by personality. I could have used software and algorithms to do the heavy lifting, but decided in favor of people. Thanks Nick!
Googlespace vs. Microsoft: Will they call it G-office?
Here we go. Says Red Herring:
“In an overt challenge to Microsoft, search giant Google said Thursday it had acquired Writely, an online word processing tool, for an undisclosed amount.
“Writely, a project of Upstartle, functions much like Microsoft Word but in a web browser. The online environment allows for collaboration between multiple authors and the benefit of someone else hosting your document.”
I wrote about this a while back… wonder why is Microsoft just sitting there milking dead cows like Office?
Marc Benioff of salesforce.com says: “It demonstrates that on demand is the death knell of Microsoft. Google is firing a shot directly into the heart of Microsoft Office.”
What can you do with Writely?
According to the website:
You can:
– Upload Word documents, OpenOffice, RTF, HTML or text (or create documents from scratch).
– Use our simple WYSIWYG editor to format your documents, spell-check them, etc.
– Invite others to share your documents (by e-mail address).
– Edit documents online with whomever you choose.
– View your documents’ revision history and roll back to any version.
– Publish documents online to the world, or to just who you choose.
– Download documents to your desktop as Word, OpenOffice, RTF, PDF*, HTML or zip.
– Post your documents to your blog.
The next question is: will it be free? ad-supported? free basic, paid premium-version??
C’mon Gates. You know what to do. Just kill Office, now- before Google kills it for you.
More on Wal-Mart: Child-Labor etc.
Fast Company senior writer Charles Fishman blogs: “Is Wal-Mart’s Factory Inspections Program a Fraud?”
Here’s an interesting snippet:
“But if you look closely at Wal-Mart’s own 44-page report of its performance (issued last June), Wal-Mart’s factory inspection program begins to look like an energetic PR effort, more than a serious effort to protect factory workers.
“Of the 12,500 inspections in 2004, only 8 percent were surprise inspections. That means 92 percent of Wal-Mart’s inspections of factories in Bangladesh and Nicaragua and China were announced in advance — the Wal-Mart inspectors made an appointment to come see how the factory was run.”
Oh, man.
“Paid-Placement” in the Blogosphere: Wal-Mart Doesn’t get PR, and Edelman Doesn’t get Blogs
Wow. Now Wal-Mart tries to do a PR move using bloggers.
How stupid is this? And just how stupid is Edelman to advise them to take this route?!
“Paid-placement” or even the appearance of paid-placement does not work in the blogosphere. If there’s one thing companies need to learn from the Republican tactic of “buying” good press, it’s that it fails. And in the long run it destroys your brand.
Of course Richard Edelman doesn’t blog about this on his blog. I’m sure they’re working on a “plausible explanation” and we’re going to hear about it in a few hours, or days… (Let’s watch their response time!)
Businesses who think blogs are just like any other media are going to learn their lesson the hard way, like Wal-Mart. I can’t say I feel sorry for them at all.
The NY Times article reveals how businesses (and traditional PR shops like Edelman) view the media (and now the blogosphere) as mouthpieces for their “messaging.” I tell you, those days are over. Wal-Mart can change its image, but only through actions, not PR. Why not start by doubling employee wages (remember Henry Ford?).
The message to Wal-Mart executives: think “fair-price” not “lowest-price.” In the long run, the “lowest price” mentality destroys shareholder value by destroying their employees and their suppliers.
Question: What if Toyota was run like Wal-Mart? The result would be – GM!
The full article (disclosed in public interest):
March 7, 2006
Wal-Mart Enlists Bloggers in P.R. Campaign
By MICHAEL BARBARO
Brian Pickrell, a blogger, recently posted a note on his Web site attacking state legislation that would force Wal-Mart Stores to spend more on employee health insurance. “All across the country, newspaper editorial boards — no great friends of business — are ripping the bills,” he wrote.
It was the kind of pro-Wal-Mart comment the giant retailer might write itself. And, in fact, it did.
Several sentences in Mr. Pickrell’s Jan. 20 posting — and others from different days — are identical to those written by an employee at one of Wal-Mart’s public relations firms and distributed by e-mail to bloggers.
Under assault as never before, Wal-Mart is increasingly looking beyond the mainstream media and working directly with bloggers, feeding them exclusive nuggets of news, suggesting topics for postings and even inviting them to visit its corporate headquarters.
But the strategy raises questions about what bloggers, who pride themselves on independence, should disclose to readers. Wal-Mart, the nation’s largest private employer, has been forthright with bloggers about the origins of its communications, and the company and its public relations firm, Edelman, say they do not compensate the bloggers.
But some bloggers have posted information from Wal-Mart, at times word for word, without revealing where it came from.
Glenn Reynolds, the founder of Instapundit.com, one of the oldest blogs on the Web, said that even in the blogosphere, which is renowned for its lack of rules, a basic tenet applies: “If I reprint something, I say where it came from. A blog is about your voice, it seems to me, not somebody else’s.”
Companies of all stripes are using blogs to help shape public opinion.
Before General Electric announced a major investment in energy-efficient technology last year, company executives first met with major environmental bloggers to build support. Others have reached out to bloggers to promote a product or service, as Microsoft did with its Xbox game system and Cingular Wireless has done in the introduction of a new phone.
What is different about Wal-Mart’s approach to blogging is that rather than promoting a product — something it does quite well, given its $300 billion in annual sales — it is trying to improve its battered image.
Wal-Mart, long criticized for low wages and its health benefits, began working with bloggers in late 2005 “as part of our overall effort to tell our story,” said Mona Williams, a company spokeswoman.
“As more and more Americans go to the Internet to get information from varied, credible, trusted sources, Wal-Mart is committed to participating in that online conversation,” she said.
Copies of e-mail messages that a Wal-Mart representative sent to bloggers were made available to The New York Times by Bob Beller, who runs a blog called Crazy Politico’s Rantings. Mr. Beller, a regular Wal-Mart shopper who frequently defends the retailer on his blog, said the company never asked that the messages be kept private.
In the messages, Wal-Mart promotes positive news about itself, like the high number of job applications it received at a new store in Illinois, and criticizes opponents, noting for example that a rival, Target, raised “zero” money for the Salvation Army in 2005, because it banned red-kettle collectors from stores.
The author of the e-mail messages is a blogger named Marshall Manson, a senior account supervisor at Edelman who writes for conservative Web sites like Human Events Online, which advocates limited government, and Confirm Them, which has pushed for the confirmation of President Bush’s judicial nominees.
In interviews, bloggers said Mr. Manson contacted them after they wrote postings that either endorsed the retailer or challenged its critics.
Mr. Beller, who runs Crazy Politico’s Rantings, for example, said he received an e-mail message from Mr. Manson soon after criticizing the passage of a law in Maryland that requires Wal-Mart to spend 8 percent of its payroll on health care.
Mr. Manson, identifying himself as a “blogger myself” who does “online public affairs for Wal-Mart,” began with a bit of flattery: “Just wanted you to know that your post criticizing Maryland’s Wal-Mart health care bill was noticed here and at the corporate headquarters in Bentonville,” he wrote, referring to the city in Arkansas.
“If you’re interested,” he continued, “I’d like to drop you the occasional update with some newsworthy info about the company and an occasional nugget that you won’t hear about in the M.S.M.” — or mainstream media.
Bloggers who agreed to receive the e-mail messages said they were eager to hear Wal-Mart’s side of the story, which they said they felt had been drowned out by critics, and were tantalized by the promise of exclusive news that might attract more visitors to their Web sites.
“I am always interested in tips to stories,” said one recipient of Mr. Manson’s e-mail messages, Bill Nienhuis, who operates a Web site called PunditGuy.com.
But some bloggers are also defensive about their contacts with Wal-Mart. When they learned that The New York Times was looking at how they were using information from the retailer, several bloggers posted items challenging The Times’s article before it had appeared. One blog, Iowa Voice, run by Mr. Pickrell, pleads for advertisers to buy space on the blog in anticipation of more traffic because of the article.
The e-mail messages Mr. Manson has sent to bloggers are structured like typical blog postings, with a pungent sentence or two introducing a link to a news article or release.
John McAdams, a political science professor at Marquette University who runs the Marquette Warrior blog, recently posted three links about union activity in the same order as he received them from Mr. Manson. Mr. McAdams acknowledged that he worked from Wal-Mart’s links and that he did not disclose his contact with Mr. Manson.
“I usually do not reveal where I get a tip or a lead on a story,” he said, adding that journalists often do not disclose where they get ideas for stories either.
Wal-Mart has warned bloggers against lifting text from the e-mail it sends them. After apparently noticing the practice, Mr. Manson asked them to “resist the urge,” because “I’d be sick if someone ripped you because they noticed a couple of bloggers with nearly identical posts.”
But Mr. Manson has not encouraged bloggers to reveal that they communicate with Wal-Mart or to attribute information to either the retailer or Edelman, Ms. Williams of Wal-Mart said.
To be sure, some bloggers who post material from Mr. Manson’s e-mail do disclose its origins, mentioning Mr. Manson and Wal-Mart by name. But others refer to Mr. Manson as “one reader,” say they received a “heads up” about news from Wal-Mart or disclose nothing at all.
Mr. Pickrell, the 37-year-old who runs the Iowa Voice blog, said he began receiving updates from Wal-Mart in January. Like Mr. Beller, of Crazy Politico, Mr. Pickrell had criticized the Maryland legislature over its health care law before Wal-Mart contacted him.
Since then, he has written at least three postings that contain language identical to sentences in e-mail from Mr. Manson. In one, which Mr. Pickrell attributed to a “reader,” he reported that Wal-Mart was about to announce that a store in Illinois received 25,000 applications for 325 jobs. “That’s a 1.3 percent acceptance rate,” the message read. “Consider this: Harvard University (undergraduate) accepts 11 percent of applicants. The Navy Seals accept 5 percent of applicants.”
Asked in a telephone interview about the resemblance of his postings to Mr. Manson’s, Mr. Pickrell said: “I probably cut and paste a little bit and I should not have,” adding that “I try to write my posting in my own words.”
In an e-mail message sent after the interview, Mr. Pickrell said he received e-mail from many groups, including those opposed to Wal-Mart, which he uses as a starting point to “do my own research on a topic.”
“I draw my own conclusions when I form my opinions,” he said.
Mr. Pickrell, explaining his support for Wal-Mart, said he shops there regularly and is impressed with how his mother-in-law, a Wal-Mart employee, is treated. “They go real out of their way for their people,” he said.
Wal-Mart’s blogging initiative is part of a ballooning public relations campaign developed in consultation with Edelman to help Wal-Mart as two groups, Wal-Mart Watch and Wake Up Wal-Mart, aggressively prod it to change. The groups operate blogs that receive posts from current and former Wal-Mart employees, elected leaders and consumers.
Edelman also helped Wal-Mart develop a political-style war room, staffed by former political operatives, which monitors and responds to the retailer’s critics, and helped create Working Families for Wal-Mart, a new group that is trying to build support for the company in cities across the country.
At Edelman, Mr. Manson, who sends many of the e-mail messages to bloggers, works closely on the Wal-Mart account with Mike Krempasky, a co-founder of RedState.org, a conservative blog. Both are regular bloggers, which in Mr. Manson’s case means he has written critically of individuals and groups Wal-Mart may eventually call on for support.
Before he was hired by Edelman in November, Mr. Manson wrote on the Human Events Online blog that members of the San Francisco city council were “dolts” and “twits” for rejecting a proposed World War II memorial and that every day “the United Nations slides further and further into irrelevance.” After he was hired, Mr. Manson wrote that the career of Senator Lincoln Chafee of Rhode Island was marked by “pointless indecision.”
Wal-Mart declined to make Mr. Manson available for comment. Ms. Williams said, “It is not Wal-Mart’s role to monitor the opinions of our consultants or how they express them on their own time.”
In a sign of how eager Wal-Mart is to develop ties to bloggers, the company has invited them to a media conference to be held at its headquarters in April. In e-mail messages, Wal-Mart has polled several bloggers about whether they would make the trip, which the bloggers would have to pay for themselves.
Mr. Reynolds of Instapundit.com said he recently was invited to Wal-Mart’s offices but declined. “Bentonville, Arkansas,” he said, “is not my idea of a fun destination.”
The Innovation Mindset: A Checklist
David Maister asks:
How well does your firm stack up against these behaviors and states of mind?
– New challenges are eagerly, continuously sought out.
– The firm and its people never rely on momentum for their success, but are always seeking to build new capabilities.
– Compared to key competitors, the people in the firm are distinguished by a superior, burning passion to get somewhere new.
– The firm emphasizes and requires adaptability, flexibility, and responsiveness as key virtues.
– The firm’s strategies are created through continued and repeated experimentation.
– The firm is markedly superior in creating (not just hiring for) energy, excitement, enthusiasm, drive, determination, passion, and ambition.
– Service offerings, locations, and operating units are repeatedly assessed against the three key criteria: Do the people in the firm find this exciting? Are we making money? Are we doing something special that others are not doing?
– There is a restless refusal to accept “It’s OK.” People never settle, never give up, never coast.
– The firm sustains energy and investment actions both when things have gone badly and when things are going relatively well.
– The firm does not judge its performance by the levels of its accomplishments, but by the “relative incline”: whether or not it is improving relative to competitors on the characteristics it has chosen to compete on.
– Management is held accountable for its ability to create and sustain drive, enthusiasm, passion, ambition, commitment, and excitement, and instills these things in the individual members and groups that make up the organization. Managers who cannot do this are replaced.
Be honest! Read the entire article: “It’s Not How Good You Are, It’s How Much You Want It” >>
Chris Trimble: Building Innovation Ecosystems
The rate at which new ideas are generated is directly related to the effort invested in enriching social networks.
Says Chris Trimble in his Fast Company column:
“Entrepreneurs believe in the power of networking. Many are very good at it. They become good because they recognize that most people with interesting notions usually have only one piece of a puzzle. Often unexpected combinations of ideas, or chance meetings of people with complimentary perspectives, ignite genuine breakthroughs.
“Aspiring innovators from large companies are handicapped in the networking game — not because they lack skill, but because of the nature of their jobs. Once a business is proven and profitable, the name of the game is to make operations as efficient as possible. Employees at all levels are pulled into ever more specialized roles. Repeated tasks are joined together by rigorously documented processes. As a result, each manager’s web of connections increasingly mirrors the way today’s work is organized. Most connections are with managers with closely related specialties, who share similar perspectives, shaped by the demands of the same customers.”
There is one other point Chris – I call it the “closing of the corporate mind”. It’s not just about people being comforatble with the status quo. It’s about people hiring and surrounding themselves with their own kind. A tribal thing, perhaps? So the desis hang out with the desis, the Chinese with the Chinese, the Hicks with the Hicks, the golf-playing execs with other golf-playing execs, repugs with repugs, etc.
And as your colleague VG says, travel!
Trimble also mentions the “vast differences between communication networks and trust networks. Communication networks are the kind that are useful at the front-end of the innovation process because they enable the sharing of ideas. The back-end of the innovation process depends on trust networks, which require much heavier investments in time, energy, and goodwill.
Still boils down to people and trust, people! Put a value on that Mr. CFO Bean-Counter!
Building a Digital Business Platform
For over five years now I’ve been working on the problem of how companies can build a community for prospective customers. The question I asked myself was:
How can we get customers to collaborate with the company/companies to co-create products and services that benefit everyone involved?
I had some long discussions on this with John Hagel and the late John Rheinfrank. Here’s what we were thinking:

[click to enlarge]
Any suggestions?
P.G. Wodehouse & India
In a country where most books in English sell fewer than 1,000 copies and 5,000 constitutes a bestseller, Penguin sells up to 70,000 Wodehouses a year: part of a thriving “retro-market” that ranges from Agatha Christie to Modesty Blaise.
Why? Read the article: “Why India fell for the code of Wodehouse“
Let me give you a list of what we read (for fun) when we were kids at St. Columba’s (from first grade to 10th). It sure was British, beta!
– Enid Blyton’s Five Find Outers, Famous Five, Secret Seven, Malory Towers, Saint Clare’s
– Captain W.E. Johns’ Biggles
– Richmal Crompton’s William
– Frank Richards’ Billy Bunter
– Agatha Christie
– and of course, P.G. Wodehouse
We also read Tin Tin and Asterix, the usual Hardy Boys and Nancy Drew junk, and the Bobsey Twins. Add to that a weekly Commando comic, the occasional Beano, and see what a mixed-up world we grew up in!
It’s a straight line from Noddy to P.G. Wodehouse.
One more thing – we did NOT read Shakespeare, unless we had to.
Open Source Collaboration: The Flu Wiki
The purpose of the Flu Wiki is to help local communities prepare for and perhaps cope with a possible influenza pandemic. This is a task previously ceded to local, state and national governmental public health agencies. Our goal is to be:
– a reliable source of information, as neutral as possible, about important facts useful for a public health approach to pandemic influenza
– a venue for anticipating the vast range of problems that may arise if a pandemic does occur
– a venue for thinking about implementable solutions to foreseeable problems
This is how the Internet is democratizing society… collaborative problem-solving in public health. Public health is too important to leave to the bureaucrats… Remember Katrina?
See their avian influenza outbreak maps.
This level of detailed information is what we want from our public institutions, but you can bet we won’t get it- for several reasons- political, economic, and sadly, policy.
Weep, Deming, Weep: Why US Automakers Can’t Learn
Is Deming crying?
It seems like the US Auto industry is intent on destroying itself. See for example, Doug Smith’s “Removing The Deck Chairs From The Titanic”. Smith says:
“GM still doesn’t ‘get it’ when it comes to the value side of it’s products. As previously noted, GM invested heavily in product design and manufacturing flexibility — that is, the capacity to move quicker to provide new products. It can now bring 15 new products to market quicker than ever before. And, what are the deck chair managers doing with this flexibility. 13 of the new products will be re-designs of full size SUVS.”
Aaargh…
What is wrong with these people? What happened to Deming’s 14 points? It was Deming who said: “If you want to ruin a company, send it American management”…
So what’s going on? IndustryWeek‘s John Teresko talks about the Toyota Way, and asks two questions:
1) How does Japan’s leading automaker keep getting better?
2) What keeps competitors from emulating that performance?
While U.S. manufacturers in many sectors have used practices from the Toyota Production System (TPS) to boost performance substantially since the mid-’80s, they have used it improperly, experts say. Instead of embracing TPS as an overarching philosophy, they have used it piecemeal as a toolbox. These companies’ leaders must revive their strategies to mimic Toyota’s in order to compete, which means reversing the popular notion that lean and other TPS-derived concepts are tools to be used selectively to achieve departmental milestones.
Read the whole thing. Look for this fun quote: “cost reduction is not a strategy unless you want to commoditize or go out of business.”
P.S.- For those of you who have forgotten Deming, here are his 14 points:
1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company (see Ch. 3).
9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
– Eliminate work standards (quotas) on the factory floor. Substitute leadership.
– Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody’s job.
Who Won the Superbowl Ad Contest? Let the Brains Decide…
So who won this year’s Superbowl ad-wars?
This year, at the UCLA Ahmanson-Lovelace Brain Mapping Center (don’t you love that name), Marco Iacoboni and his group used functional magnetic resonance imaging (fMRI) to measure brain responses in a group of subjects while they watched the Super Bowl ads. The way fMRI works is relatively simple: different levels of cerebral blood oxygenation have different magnetic properties. Moreover, changes in blood oxygenation correlate with changes in neural activity. Thus, without using any contrast agent, fMRI can measure how much brain areas are activated during sensory, cognitive and motor experiences.

According to the brain-waves, “the overwhelming winner among the Super Bowl ads is the Disney – NFL ‘I am going to Disney’ ad. The Disney ad elicited strong responses in orbito-frontal cortex and ventral striatum, two brain regions associated with processing of rewards. Also, the Disney ad induced robust responses in mirror neuron areas, indicating identification and empathy. Further, the circuit for cognitive control, encompassing anterior cingulate cortex and dorsolateral prefrontal cortex, was highly active while watching the Disney ad. We consider all these features positive markers of brain responses to the ad. In second place, the Sierra Mist ad, activated the same brain regions but less so than the Disney ad.”
Great. Disney? Give me a break. That said, I know someone (a famous business guru) who is visiting Disney this week, so maybe the ad worked after all!
Here’s the one I picked as the winner. (Doug Smith agrees!) >>
Anyway, read all about the brain wave theory of advertising effectiveness here >>
The Death of the Newspaper
Joseph Epstein in Commentary:
“To begin with familiar facts, statistics on readership have been pointing downward, significantly downward, for some time now. Four-fifths of Americans once read newspapers; today, apparently fewer than half do. Among adults, in the decade 1990-2000, daily readership fell from 52.6 percent to 37.5 percent. Among the young, things are much worse: in one study, only 19 percent of those between the ages of eighteen and thirty-four reported consulting a daily paper, and only 9 percent trusted the information purveyed there; a mere 8 percent found newspapers helpful, while 4 percent thought them entertaining.
“From 1999 to 2004, according to the Newspaper Association of America, general circulation dropped by another 1.3 million. Reflecting both that fact and the ferocious competition for classified ads from free online bulletin boards like craigslist.org, advertising revenue has been stagnant at best, while printing and productions costs have gone remorselessly upward. As a result, the New York Times Company has cut some 700 jobs from its various papers. The Baltimore Sun, owned by the Chicago Tribune, is closing down its five international bureaus. Second papers in many cities have locked their doors.
“This bleeding phenomenon is not restricted to the United States, and no bets should be placed on the likely success of steps taken by papers to stanch the flow. The Wall Street Journal, in an effort to save money on production costs, is trimming the width of its pages, from 15 to 12 inches. In England, the once venerable Guardian, in a mad scramble to retain its older readers and find younger ones, has radically redesigned itself by becoming smaller. London’s Independent has gone tabloid, and so has the once revered Times, its publisher preferring the euphemism “compact.”
I agree, in principle, with Epstein’s solution:
“My own preference would be for a few serious newspapers to take the high road: to smarten up instead of dumbing down, to honor the principles of integrity and impartiality in their coverage, and to become institutions that even those who disagreed with them would have to respect for the reasoned cogency of their editorial positions. I imagine such papers directed by editors who could choose for me—as neither the Internet nor I on my own can do—the serious issues, questions, and problems of the day and, with the aid of intelligence born of concern, give each the emphasis it deserves.
“In all likelihood a newspaper taking this route would go under; but at least it would do so in a cloud of glory, guns blazing. And at least its loss would be a genuine subtraction. About our newspapers as they now stand, little more can be said in their favor than that they do not require batteries to operate, you can swat flies with them, and they can still be used to wrap fish.”
Read the entire article here >>
Wal-Mart vs. Target vs Walgreens vs Costco
From a NYTimes article:
Though Wal-Mart is three times larger than its next biggest retail rival, Mr. Scott appears to be preoccupied with competitors whose individual store sales are growing faster than Wal-Mart’s — namely Target and Walgreens.
Asked about Wal-Mart’s stock price, which has fallen 11 percent in the last five years. Mr. Scott said: “You cannot have Target or Walgreens beating you day after day after day.” Mr. Scott wrote that one reason Wal-Mart’s same-store sales were growing more slowly than Target’s was that Wal-Mart’s customers earn less and have been squeezed worse by soaring fuel prices.
“Wal-Mart’s focus has been on lower income and lower-middle income consumers,” he wrote. “In the last four years or so, with the price of fuel being what it is, that customer has had the most difficult time. The upper-end customer got a tremendous number of tax breaks about four years ago. They have been doing very well in this economy.”
He said having to pay $50 to gas up a car did not change anything for rich customers, but did for those who didn’t earn a lot. “It changes whether or not you go to the movie, whether or not you buy new sheets, whether or not you go out to eat.”
At several points, Mr. Scott addressed criticisms that Wal-Mart health plan was too stingy toward its employees. He said that Wal-Mart’s health plan “stacks up very, very competitively” with other retailers. In a knock at companies that provide more generous benefits, Mr. Scott wrote: “One of the things said about General Motors now is that General Motors is no longer an automotive company. General Motors is a benefit company that sells cars to fund those benefits.”
OK. Let’s get this straight:
1) Wal-Mart is targeting lower income and lower-middle income consumers, i.e. its employees.
2) Wal-Mart won’t pay its employees a decent salary w/ benefits.
3) Wal-Mart says its same-store sales are growing more slowly than Target’s is because Wal-Mart’s customers earn less and have been squeezed worse by soaring fuel prices.
Sounds like one of those destructive cycles brought about by narrow-thinking from upper-management…
Let’s look at two other alternatives: Costco and IKEA.
Wake up Wal-Mart. Get some values.
Cartoon: Traveling at the Speed of Light, the Carrots Race to Meet Destiny

Ad Agencies Face Accountability
Google may be diversifying offline into radio, print and potentially TV advertising sales, but its plan is to utilize its powerful online backchannel to measure results of those deals.
If successful, the initiative could provide a new, empirical way of proving the ROI of traditional media advertising deals. In an interview with MediaDailyNews, Google’s Director of Advertising Strategy Patrick Keane said the plan relies on techniques already being utilized by some advertisers who use an online component of their media strategies to measure the effects of traditional media in their mix.
One straightforward strategy, he said, would be driving readers or listeners back to the online realm and measuring them there.
“The smart advertisers have been coming up with linked campaigns for a while,” Keane noted. “They’re no longer conceiving of advertising campaigns that are limited to the various silos–just print, just radio, or just Internet, and so on.”
As an example, Keane noted how marketers might include a unique URLs in text ads, allowing advertisers to measure by site visits the number of visitors who interacted with the text ad. He suggested advertisers could cast an even wider net by including an old direct response technique–the unique 1-800 number–in print campaigns and radio advertising. As aficionados of late-night TV know, 1-800 numbers are old hat; in this system, the studio selling albums, for example, pays out to the broadcaster based on the number of phone inquiries they receive.
Another approach might include econometric modeling, which uses sophisticated statistical analyses to determine the effect offline advertising has on driving consumers to online activity and vice versa.
This is good news for everyone except the ad agencies. They certainly don’t want accountability!
BTW, this approach isn’t new. David Ogilvy talks about it in “On Advertisisng” as does the late Claude Hopkins in his book on scientific advertising…
I’ve been proposing this approach to my clients for over five years now: every ad, no matter the media, must have a web-based call to action, period. Either that or a 1-800 number with a promo code…
Aligning HR with the Business
Now that HR has decide that they need to be perceived as strategic, they’ve decided to put start measuring the ROI of HR. How? Human-Capital Metrics.
The problem with HR is HR. In a majority of companies, business and HR are not in alignment.
Why? Because most businesses treat their employees as costs, not investments. As long as that’s the prevailing attitude, all attempts to measure the value of HR using metrics will be in vain…
There are exceptions – see Laurence Haughton’s interview– especially the part about IKEA.
What Global Warming?
The current wave of “warming” is the longest in 1,200 Years. According to the researchers:
“We found that between [A.D.] 890 and 1170, there was statistically significant widespread warmth corresponding approximately to the so-called Medieval Warm Period… However, the most widespread warmth was found not in the Middle Ages but during the 20th century.”
Here’s the article.
The researchers believe that “this latest paper might be the nail in the coffin for the small minority of very vocal climate change denialists who continue to challenge the conclusion that the recent warming of the Earth’s surface is out of the ordinary.”
Dream on, scientists. The people who deny global warming don’t believe in science. They believe in money. And the money says there is no global warming. They won’t believe it even if they see it… Right, Texxon?
I Work with Fools
The stupidity of business – exposed.
Why is it that stores don’t let you surf the Internet in the store? [I know they’re scared I’ll compare prices… but aside from that?]
Recently I needed some information to make a purchase, so I asked the store manager if they had an Internet connection where I could look up my information. “Sorry, you can only visit one site, ours…” he smirked.
I went home to get my info, and the company lost about $500.00 in sales, because I couldn’t stand the attitude.
The customer is not content to sit in a box any longer…