Von Hippel: Democratizing Innovation

I meant to do this quite some time ago, but it slipped my mind (like most things). So here it is: a free download of Democratizing Innovation by MIT’s Eric Von Hippel.
The table of contents:
1 Introduction and Overview
2 Development of Products by Lead Users
3 Why Many Users Want Custom Products
4 Users’ Innovate-or-Buy Decisions
5 Users’ Low-Cost Innovation Niches
6 Why Users Often Freely Reveal Their Innovations
7 Innovation Communities
8 Adapting Policy to User Innovation
9 Democratizing Innovation
10 Application: Searching for Lead User Innovations
11 Application: Toolkits for User Innovation and Custom Design
12 Linking User Innovation to Other Phenomena and Fields
Here’s why I keep going back to this book:
Firms can make a profitable business from identifying and mass producing user-developed innovations or developing and building new products based on ideas drawn from such innovations. They can gain advantages over competitors by learning to do this better than other manufacturers. They may, for example, learn to identify commercially promising user innovations more effectively that other firms. Firms using lead user search techniques … are beginning to do this systematically rather than accidentally—surely an improvement. Effectively transferring user-developed innovations to mass manufacture is seldom as simple as producing a product based on a design by a single lead user. Often, a manufacturer combines features developed by several independent lead users to create an attractive commercial offering. This is a skill that a company can learn better than others in order to gain a competitive advantage.”

Fact-Free Reality

“Ask yourself what percentage of the ‘input’ — the information on which we must navigate our busy lives in this new world of markets — is fact-based? If the input comes from ‘news’, is the ‘news’ fact based? If the input comes from the Bush White House, is it ‘fact based’? If the input comes from TV programming (even ‘reality shows’), is it fact based? How about from your relgious leaders? What about schools? How about work?”
Doug Smith’s brilliant post is here >>

Manasco on “The Wisdom of Communities”

My friend Britton Manasco blogs about the “Wisdom of Communities” here.
His point is “the future is increasingly about the wisdom of crowds — or, at least, communities.”
So people, says Britton, especially in the B2B world, tend to trust their peers and not the experts.
Britton’s right to some extent. But what he forgets is that a community is a group of individuals, some more passionate than others, focused around a practice or interest. The leaders of the community are viewed as experts (perhaps not in the academic sense), but certainly in the role of the teacher helping the novices get up to speed.
These “experts” rise to the top naturally. And unlike senior management in most American companies, they rise to the top by virtue of merit – the knowledge they share with their fellow community members. The wisdom of communities is thus not the wisdom of crowds, but the wisdom of the expert-practitioner. Often they’re amateurs. Which makes them even more believable, because they’re in it for the love of the game, not necessarily for the money like the “professionals.”
Ask yourself: How can we get customers to collaborate with our company/companies to co-create products and services that benefit everyone involved?
To me, that’s the real power of communities, aside from double loop marketing.

Another (Hot) Summer Gone

And what have we learned?
I took some time off the blog to focus on some off-line activities like working on my book on Double Loop Marketing. Must say I’m having fun working on it. And like all good research projects, I just have more questions.
I’ll be presenting some of my thoughts at a Penn State ISBM webinar on Double Loop Marketing later this year, so stay tuned.
I also did some travelling and learned that it’s time for Europe to get some basic summer necessities like A/C and ice.
Why is it that European restaurants give you two tiny cubes of ice when you ask them for ice in your drink?
I’m also learning that we are running out of snow-capped mountains – both in Europe and in the States. This global-warming stuff is going to eat our lunch. Which brings me back to air-conditioning. Why are the Europeans so averse to A/C? The Germans, and the French seem to be competing against each other: who can withstand higher temperatures without A/C?
There seems to be a perfect market for a low-cost, portable, one-room A/C unit, priced under € 200. Can it be done? And who’s going to do it? I’m betting an Eastern European immigrant will figure this out and become the next German (or French) billionaire.
Oh well. Thanks to everyone for the e-mails and inquiries while I was out. I will be getting back to you all over the next two weeks.
It’s good to be blogging again. And maybe I’ll even have something halfway intelligent to say in my next post!

Math, Science, and Social Mobility

Why do some people climb up the social ladder while others stay put? What personal characteristics account for the fact that some people “get ahead” in life and others fall behind?
Here are three contending theories of social mobility >>
In my opinion, there is still a lot to be said for putting your shoulder to the wheel. In this case, the wheel happens to be math and science.
I know from personal experience that even not-so-bright kids get pretty good at physics and calculus if they get put through an Indian style education.
This is something we don’t understand in the West, because we have lost our capacity for heavy lifting – both as a society and as individuals.
Who needs to think? If the Lord wanted us to learn science, calculus would be included in the Bible, etc.
Unfortunately, America seems to be slacking off big time. Apparently, we’re turning into a nation of massage therapists, according to GE’s Immelt. 🙂
Thoughts?

The Return on Attention

John Hagel is his usual insightful self in his blog post “Paying Attention“…
He asks: what is behind the desire to receive attention?
Is it a weak sense of self? A desire to be recognized and liked? An unhealthy need to be seen? Envied?
Let’s go back to before Goldhaber, to someone like St. Augustine, perhaps.

Immelt on Leadership

Emory’s Kelly Bean tells us about Jeffrey Immelt’s 5 traits of GE’s growth leaders:
1. External focus
2. Imagination and creativity
3. Clear thinking and decisiveness
4. Inclusiveness
5. Deep domain expertise
It’s all about creating leaders for tomorrow, not today.
Seems like Immelt is not quite optimistic about the US these days. Here’s what he told Fareed Zakaria
“More people will graduate in the United States in 2006 with sports-exercise degrees than electrical-engineering degrees… So, if we want to be the massage capital of the world, we’re well on our way.”
Ouch. Please read Zakaria’s How Long Will America Lead the World?.
Here’s a quick byte:
There are some who see the decline of science and technology as part of a larger cultural decay. A country that once adhered to a Puritan ethic of delayed gratification has become one that revels in instant pleasures. We’re losing interest in the basics—math, manufacturing, hard work, savings—and becoming a postindustrial society that specializes in consumption and leisure.

Ignoring the Death of our Planet

These are sad days. The president, the business community, and the religious establishment have all turn their backs on Life on Earth.
Now Al Gore wants to save the world, with a powerpoint slideshow (and a movie).
At least he’s doing something.
The oil lobby has already come out with anti-Gore attack ads defending Carbon Dioxide (and their profits). Yay!
America, when did we lose the ability to think? At what point did we decide that the future doesn’t matter any more?

What Would Jesus Do to Save the Planet? Play bingo? Drive an SUV? Hint: He kicked the money lenders out of the temple…

Mark Hollander: Life is not a Meritocracy

Mark Hollander reminds us that life is not a meritocracy.

According to Hollander, your success depends upon a combination of:
– Who you know
– How good you are at what you do
– How many people know that you’re that good
– Luck

I tend to agree with Mark, but there’s a huge difference across countries.
In the US, we’re talking about success. In other countries, we could be talking about survival.

Countries in which cultural and religious traditions dominate are even less likely to be meritocracies. My prime example is India. You can’t make it in India without “connections.” I know people who have left India to achieve success and then went back and set up successful businesses. Had they not left India for the meritocracies of the West, they would not have succeeded.

The question I have is where do meritocracies flourish? What are the conditions necessary for a meritocracy to take hold in business? in public office?
It all hinges on performance. If performance becomes the key driver of sucess, like it does in sports, for example, then meritocracy should be the rule. And to a large extent it is.

But even in sports, success is not assured. A superstar performer has to learn how to play with his teammates, even the ones who are jealous and want him to fail.
What astounds me is that we are so petty. Across the globe, pettiness trumps sound decision-making almost every time. From politics to sports, it is our social ability or “people skills” which makes all the difference. And these skills can be taught. As a society, we’ve got to be careful about what we’re teaching our kids.

Kissing-up is one of those surprisingly important skills they don’t teach you at Harvard Business School.

Thank goodness I work for myself. I failed “Butt-Kissing 101″…

The Meaning-Driven Business

Does your business have meaning? A purpose beyond the purpose of making money?
See Guy Kawasaki’s “Art of the Start” clip below (hat-tip to Dominic Basulto from businessinnovationinsider.com)

Funny thing – we must find a way to do what we love, or we are wasting our lives:
Dr. K. Anders Ericsson’s research on performance suggests that when it comes to choosing a life path, you should do what you love — because if you don’t love it, you are unlikely to work hard enough to get very good. Most people naturally don’t like to do things they aren’t “good” at. So they often give up, telling themselves they simply don’t possess the talent for math or skiing or the violin. But what they really lack is the desire to be good and to undertake the deliberate practice that would make them better…
– from the NYTimes article by the Freakonomics nerds – read the article at soccer blog >>

Hypocrites

Now we have the President of Iran lecturing Bush on morality… in the language of the 12th century.
Oh, great – the neo-cons have dragged America (and the world) into the New Dark Ages.
How far have we fallen? Condi Rice shows her diplomatic skills are still far below world class.
Should we be surprised by our incompetence? At the wolf at our door?
Here’s a song to cheer us up:

Meanwhile, the family values we are so caught up with in the US don’t translate to action. The US ranks 32nd out of 33 industrialized countries when it comes to newborn mortality. Is this the “culture of life” our “religious” leaders talk about?
Here’s the list of newborn deaths per 1,000 live births in the top 33 industrialised countries. They are grouped from A to F. Each group is listed alphabetically.
A – Japan 1.8/1000
B – Czech Rep 2/1000
B – Finland 2/1000
B – Iceland 2/1000
B – Norway 2/1000
C – Austria 3/1000
C – France 3/1000
C – Germany 3/1000
C – Israel 3/1000
C – Italy 3/1000
C – Luxembourg 3/1000
C – Portugal 3/1000
C – Slovenia 3/1000
C – Spain 3/1000
D – Australia 4/1000
D – Belgium 4/1000
D – Canada 4/1000
D – Denmark 4/1000
D – Estonia 4/1000
D – Greece 4/1000
D – Ireland 4/1000
D – Lithuania 4/1000
D – Netherlands 4/1000
D – New Zealand 4/1000
D – Switzerland 4/1000
D – United Kingdom 4/1000
E – Hungary 5/1000
E – Malta 5/1000
E – Poland 5/1000
E – Slovakia 5/1000
E – USA – 5/1000
F – Latvia 6/1000
We have no shame… Have a nice day.

Mira this Miro!


Last Thursday’s Google logo had painted versions of each letter in the Google name — allegedly incorporating images from Miró’s “The Escape Ladder,” 1940; “Nocturne,” 1940; and “The Beautiful Bird Revealing the Unknown to a Pair of Lovers,” 1941.
The artist’s family showed their true colors by demanding Google take down image.
Morons. They don’t care about art at all, simply money.
Google actually did them a great service. Now millions more know who Miro is. They should be paying Google!
Next we’ll have the Earth suing Google as well – for Earth Day copyright violations! 🙂

Womenomics: The Business Value of Women

Question: What would happen to the world if the CEOs of ExxonMobil, the NY Times, Wal-Mart, GE and Microsoft were all women?

The Economist tells us that women are now the most powerful engine of global growth. Apparently over the past decade, the increased employment of women in developed economies has contributed much more to global growth than China has.
Listen to this:
Making better use of women’s skills is not just a matter of fairness. Plenty of studies suggest that it is good for business, too. Women account for only 7% of directors on the world’s corporate boards—15% in America, but less than 1% in Japan. Yet a study by Catalyst, a consultancy, found that American companies with more women in senior management jobs earned a higher return on equity than those with fewer women at the top. This might be because mixed teams of men and women are better than single-sex groups at solving problems and spotting external threats. Studies have also suggested that women are often better than men at building teams and communicating.
To make men feel even worse, researchers have also concluded that women make better investors than they do. A survey by Digital Look, a British financial website, found that women consistently earn higher returns than men. A survey of American investors by Merrill Lynch examined why women were better at investing. Women were less likely to “churn” their investments; and men tended to commit too much money to single, risky ideas. Overconfidence and overtrading are a recipe for poor investment returns.

Is anybody listening?
I posted about this a while back: Advice to Women who would be CEOs: “Stay away from HR”
I usually think of “business-women” in two camps – the toady – a conservative woman who moved up the ranks by reinforcing the stereotypes (eg. Kay Bailey Hutchison) or – the trailblazer – a talented woman who created her own way despite the barriers and obstacles thrown in her way by the good-old boys (eg. Anita Roddick).
Of course some people in certain parts of the world still think of women as property. Is it a coincidence that our problems with terrorism stem from these same places?

The Community Trap: Joga.com vs. SoccerBlog.com

At first glance I have no chance.
How can my puny soccerblog.com site take on the likes of Joga.com from Nike + Google?
Answer: It doesn’t have to.
Joga.com from Nike + Google is too commercial, period. So it’s no contest.
Communities have to be open – in spirit and intent. They cannot exclude players, teams, or participants. I’m sure Nike + Google will learn. Until then, I’m having fun!
John Hagel: Joga.com and the Return of Community
William Dunk’s Global Province: Agile Companies #281

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…

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…

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?

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!

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!

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 >>

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.

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…

The War on Science: Politicizing NASA

From the New Your Times. This made me so mad, I posted the entire thing:
February 4, 2006
NASA Chief Backs Agency Openness
By ANDREW C. REVKIN
A week after NASA’s top climate scientist complained that the space agency’s public-affairs office was trying to silence his statements on global warming, the agency’s administrator, Michael D. Griffin, issued a sharply worded statement yesterday calling for “scientific openness” throughout the agency.
“It is not the job of public-affairs officers,” Dr. Griffin wrote in an e-mail message to the agency’s 19,000 employees, “to alter, filter or adjust engineering or scientific material produced by NASA’s technical staff.”
The statement came six days after The New York Times quoted the scientist, James E. Hansen, as saying he was threatened with “dire consequences” if he continued to call for prompt action to limit emissions of heat-trapping gases linked to global warming. He and intermediaries in the agency’s 350-member public-affairs staff said the warnings came from White House appointees in NASA headquarters.
Other National Aeronautics and Space Administration scientists and public-affairs employees came forward this week to say that beyond Dr. Hansen’s case, there were several other instances in which political appointees had sought to control the flow of scientific information from the agency.
They called or e-mailed The Times and sent documents showing that news releases were delayed or altered to mesh with Bush administration policies.
In October, for example, George Deutsch, a presidential appointee in NASA headquarters, told a Web designer working for the agency to add the word “theory” after every mention of the Big Bang, according to an e-mail message from Mr. Deutsch that another NASA employee forwarded to The Times.
And in December 2004, a scientist at NASA’s Jet Propulsion Laboratory complained to the agency that he had been pressured to say in a news release that his oceanic research would help advance the administration’s goal of space exploration.
On Thursday night and Friday, The Times sent some of the documents to Dr. Griffin and senior public-affairs officials requesting a response.
While Dr. Griffin did not respond directly, he issued the “statement of scientific openness” to agency employees, saying, “NASA has always been, is and will continue to be committed to open scientific and technical inquiry and dialogue with the public.”
Because NASA encompasses a nationwide network of research centers on everything from cosmology to climate, Dr. Griffin said, some central coordination was necessary. But he added that changes in the public-affairs office’s procedures “can and will be made,” and that a revised policy would “be disseminated throughout the agency.”
Asked if the statement came in response to the new documents and the furor over Dr. Hansen’s complaints, Dr. Griffin’s press secretary, Dean Acosta, replied by e-mail:
“From time to time, the administrator communicates with NASA employees on policy and issues. Today was one of those days. I hope this helps. Have a good weekend.”
Climate science has been a thorny issue for the administration since 2001, when Mr. Bush abandoned a campaign pledge to restrict power plant emissions of carbon dioxide, the main heat-trapping gas linked to global warming, and said the United States would not join the Kyoto Protocol, the first climate treaty requiring reductions.
But the accusations of political interference with the language of news releases and other public information on science go beyond climate change.
In interviews this week, more than a dozen public-affairs officials, along with half a dozen agency scientists, spoke of growing efforts by political appointees to control the flow of scientific information.
In the months before the 2004 election, according to interviews and some documents, these appointees sought to review news releases and to approve or deny news media requests to interview NASA scientists.
Repeatedly that year, public-affairs directors at all of NASA’s science centers were admonished by White House appointees at headquarters to focus all attention on Mr. Bush’s January 2004 “vision” for returning to the Moon and eventually traveling to Mars.
Starting early in 2004, directives, almost always transmitted verbally through a chain of midlevel workers, went out from NASA headquarters to the agency’s far-flung research centers and institutes saying that all news releases on earth science developments had to allude to goals set out in Mr. Bush’s “vision statement” for the agency, according to interviews with public-affairs officials working in headquarters and at three research centers.
Many people working at Goddard Space Flight Center in Greenbelt, Md., and the Jet Propulsion Laboratory in Pasadena, Calif., said that at the same time, there was a slowdown in these centers’ ability to publish anything related to climate.
Most of these career government employees said they could speak only on condition of anonymity, saying they feared reprisals. But their accounts tightly meshed with one another.
One NASA scientist, William Patzert, at the Jet Propulsion Laboratory, confirmed the general tone of the agency that year.
“That was the time when NASA was reorganizing and all of a sudden earth science disappeared,” Mr. Patzert said. “Earth kind of got relegated to just being one of the 9 or 10 planets. It was ludicrous.”
In another incident, on Dec. 2, 2004, the propulsion lab and NASA headquarters issued a news release describing research on links between wind patterns and the recent warming of the Indian Ocean.
It included a statement in quotation marks from Tong Lee, a scientist at the laboratory, saying the analysis could “advance space exploration” and “may someday prove useful in studying climate systems on other planets.”
But after other scientists at the Jet Propulsion Laboratory queried Dr. Lee on the statement, he e-mailed public-affairs officers saying he disavowed the quotation and demanded that the release be taken off the Web site. His message was part of a sequence of e-mail messages exchanged between scientists and public-affairs officers. That string of messages was provided to The Times on Friday by a NASA official.
In his e-mail message, Dr. Lee explained that he had cobbled together the statement on space exploration under “the pressure of the new HQ requirement for relevance to space exploration” and under a timeline requiring that NASA “needed something instantly.”
The press office dropped the quotation from its version of the release, but in Washington, the NASA headquarters public affairs office did not.
Dr. Lee declined to be interviewed for this article.
According to other e-mail messages, the flare-up did not stop senior officials in headquarters from insisting that Mr. Bush’s space-oriented vision continue to be reflected in all earth-science releases.
In the end, the news release with Dr. Lee’s disavowed remark remained up on the NASA headquarters public affairs Web site until The Times asked about it yesterday. It was removed from the Web at midday.
The Big Bang memo came from Mr. Deutsch, a 24-year-old presidential appointee in the press office at NASA headquarters whose résumé says he was an intern in the “war room” of the 2004 Bush-Cheney re-election campaign. A 2003 journalism graduate of Texas A&M, he was also the public-affairs officer who sought more control over Dr. Hansen’s public statements.
In October 2005, Mr. Deutsch sent an e-mail message to Flint Wild, a NASA contractor working on a set of Web presentations about Einstein for middle-school students. The message said the word “theory” needed to be added after every mention of the Big Bang.
The Big Bang is “not proven fact; it is opinion,” Mr. Deutsch wrote, adding, “It is not NASA’s place, nor should it be to make a declaration such as this about the existence of the universe that discounts intelligent design by a creator.”
It continued: “This is more than a science issue, it is a religious issue. And I would hate to think that young people would only be getting one-half of this debate from NASA. That would mean we had failed to properly educate the very people who rely on us for factual information the most.”
The memo also noted that The Associated Press Stylebook and Libel Manual specified the phrasing “Big Bang theory.” Mr. Acosta, Mr. Deutsch’s boss, said in an interview yesterday that for that reason, it should be used in all NASA documents.
The Deutsch memo was provided by an official at NASA headquarters who said he was upset with the effort to justify changes to descriptions of science by referring to politically charged issues like intelligent design. Senior NASA officials did not dispute the message’s authenticity.
Mr. Wild declined to be interviewed; Mr. Deutsch did not respond to e-mail or phone messages. On Friday evening, repeated queries were made to the White House about how a young presidential appointee with no science background came to be supervising Web presentations on cosmology and interview requests to senior NASA scientists.
The only response came from Donald Tighe of the White House Office of Science and Technology Policy. “Science is respected and protected and highly valued by the administration,” he said.
Dennis Overbye contributed reporting for this article.