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Girl Scouts: Sell This!

One of my pet peeves with the Girl Scouts of America is their exploitation of children:
“…they have to sell 40 boxes of cookies at $3.00 apiece just to make $20.00. The other $2.50 goes to the Girl Scout Organization.”
What a rip-off.
Instead of selling cookies, the Girl Scouts troops should be selling these. And keeping the PCs.
Why can’t www.laptop.org donate or sell PCs to poor schools in the US as well as the rest of the world? C’mon St. Nicholas (Negroponte)!

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The Church of Hypocrisy

Idiots.
The planet’s dying, we’re killing thousands in Iraq, the poor are struggling everywhere, and these idiots drown in their stupidity.
The facts are that abortion rates fell under pro-choice Clinton…
No one is for abortion. And the Catholic church needs to fix itself before it starts preaching about anything at all.
What would Jesus do? Jesus would’ve fired the Pope, along with all the other money lenders in the temple.
Advice to the Church: help the poor and suffering and judge not.

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

JH3 is a big fan of the 80/20 principle:
The 80/20 rule provides the foundation for a relatively simple exercise for executives. It involves answering the following questions:
* Which 20% of the products or services generate 80% of the profitability?
* Which 20% of the customers generate 80% of the profitability?
* Which 20% of the geographies generate 80% of the profitability?
* Which 20% of the assets generate 80% of the profitability?
These are powerful and revealing questions, yet few companies today are able to answer these questions given the way their accounting and information systems are set up.
I wonder if the same approach could be applied to the Federal Budget. Obama, are you listening?
The pareto questions might look something like this:
– Which 20% of our costs take up 80% of the budget?
– Which 20% of our services impact 80% of the tax-paying public?
– Which 20% of our geographies require 80% of our aid?
– Which 20% of our public generate 80% of our tax revenues?
Betcha these could be eye-openers!

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Mumbai: Is Secular India Dead?

The spirit of Mumbai can’t be killed. That’s what Suketu Mehta says in his op-ed piece in the NYTimes:

Mumbai is all about dhandha, or transaction. From the street food vendor squatting on a sidewalk, fiercely guarding his little business, to the tycoons and their dreams of acquiring Hollywood, this city understands money and has no guilt about the getting and spending of it. I once asked a Muslim man living in a shack without indoor plumbing what kept him in the city. “Mumbai is a golden songbird,” he said. It flies quick and sly, and you’ll have to work hard to catch it, but if you do, a fabulous fortune will open up for you. The executives who congregated in the Taj Mahal hotel were chasing this golden songbird. The terrorists want to kill the songbird.
Mehta’s book Maximum City: Bombay Lost and Found
is possibly the most important book today for anyone trying to understand what is happening in Mumbai today.
Here’s an interesting interview with Mehta in the Washington Post.
My worry is that the fallout from the Mumbai carnage will be the rise of more fanaticism and stupidity on both sides. India can’t afford more “divide and rule.”

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Mumbai Burning: India’s 9/11

mumbaitaj.jpg
I have the same sick feeling I had when I watched the Twin Towers collapse that dreadful day.
Why would these people deliberately do such a thing? Yes, I understand the Kashmir problem. But does that mean you have to go around killing innocents? It looks like Al-Qaeda has taught smaller terrorist organizations to think big.
And the saddest part of it all is that politicians in India are now using this to attract attention to themselves…

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Seth Godin teaches the New York Times How to Compete

In my line work (consulting) I run into all kinds of executive mindsets. In the publishing world, however, these mindsets tend to be rather stodgy at best, reptilian at worst.
Publishers don’t understand the web. And Seth Godin takes the New York Times to task, pointing out so many obvious misses and near-misses, that you have to ask why. Why don’t publishers get it? Why do they insist on playing it safe, even as their ship sinks below them?
Godin’s answer is right on target: “organizations are run by people who want to protect the old business, not develop the new one.”
This is what VG talks about as well.
In just about any large company, the people running the show are great at yesterday’s business, not tomorrow’s.
Please read Godin’s post >>

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Shoshana Zuboff: Obama’s Victory is Capitalism 2.0

Writes Zuboff in BusinessWeek:
“This column is dedicated to the top managers of American business whose policies and practices helped ensure Barack Obama’s victory. The mandate for change that sounded across this country is not limited to our new President and Congress. That bell also tolls for you. Obama’s triumph was ignited in part by your failure to understand and respect your own consumers, customers, employees, and end users. The despair that fueled America’s yearning for change and hope grew to maturity in your garden.”
Years ago I remember reading Zuboff’s In the Age of the Smart Machine and thinking that no one in corporate management really wants real transparency… and that the information value-chain she described was doomed to failure.
Luckily, I was wrong. Now Obama will bring process transparency to government and business.
Asks Zuboff:
“…can we invent a business model in which advocacy, support, authenticity, trust, relationship, and profit are linked?”
“Yes, we must,” she concludes.
Read the article >>
And read her book: The Support Economy: Why Corporations Are Failing Individuals and the Next Episode of Capitalism
 >>

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Business Lessons Learned from President-Elect Barack Obama

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

It’s a cliche, but big business fears Democratic leaders. Turns out that Democratic presidents are better for the economy than Republicans! Details, details…
Jack Welch has his own take on why Obama succeeded: a clear vision, clean execution, and friends in high places.
A far more insightful piece comes from HBR blogger Umair Haque: Obama’s Seven Lessons for Radical Innovators. I don’t agree with all of his points (Obama did not “minimize strategy,” he minimized tactics!) but I do commend Haque for his insights (see this post, for example, on why Obama is the Google of Politics.)
Bill Taylor has a fun post titled: How Obama Became CEO of the USA — and What It Means for CEOs Everywhere
 in which he argues that “being different makes all the difference.”
John Quelch says it’s all about better marketing.
Barbara Kellerman argues that Obama is a superior manager.
Gill Corkindale calls Obama The World’s First 21st Century Leader
For Stew Friedman, it’s authenticity.
My own view is that Obama is a true leader. And what we witnessed was the birth of Politics 2.0.
And in the end, it’s still about results, and to that end, Obama has already taken the first step.
Go Barack!

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Michael Porter: Why America Needs an Economic Strategy

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

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SNL Disaster: Sarah Palin Mocks Herself

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

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

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David Letterman: The Comedian who Became an Anchor

As I mentioned earlier, it does seem like the comedians do a better job on serious issues.
In this case, David Letterman stands head and shoulders above our so-called news people like George Stephanopoulos, Tom Brokaw, Katie Couric, and Brian Williams.
Part One

Part Two

Part Three

Part Four

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

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

In BusinessWeek:
Industry observers say that while those retailers can take 60 to 90 days or more to settle up, TJX typically pays within 30. These days, that’s a critical selling point both to vendors, who are more concerned about finding funds to buy raw materials and pay expenses, and to the financers who act as middlemen in many of the deals. It could give TJX—which also owns discounters Marshalls and HomeGoods—an added advantage in getting a wider selection of items.
Makes sense. Can’t sell something that’s not on the shelf, Drucker used to say…
Read the article here>>
There’s another very good reason to pay quickly: goodwill.
Your suppliers will take an extra step or two for you if they know they can count on you. This “trust” makes a giant difference in execution.
There’s a software company I know which used to delay its vendor payments as much as possible as part of its strategy. While it may have gained a few bucks in capital, it lost in terms of responsiveness. Big time. Vendors would move extremely slowly to deliver value. It was frustrating on both sides. And all because a few “brilliant” bean-counters thought they had found a way to squeeze a few more pennies into the corporate treasury.

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God is in the Process: The Legacy of Michael Hammer

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

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

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

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

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

Here are some fun links:
– Put Processes First: Make High Performance Possible Michael Hammer
– Michael Hammer: A Tribute to the Guru of Operations Anand Raman
– Remembering Michael Hammer Tom Davenport

In the end, process matters. Even our buddy Drucker acknowledged that.
BTW, the other process guru who is still (very) alive and kicking isTom Davenport.

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Retail Strategy: Tips from Peter Drucker

One of the great things about the late Peter Drucker is that he can be summoned to solve just about any problem.
One of my clients is a web retailer. They’re having serious issues with “customer hesitancy.”
And of course the headlines are now full of bad news in retail.
So we had a long chat about customer hesitancy. What makes the customer hesitant? Is it really the news on TV? Is it the fact that they might be out of a job?
My first piece of advice to them was straight out of Drucker: Stop selling and start buying for the customer.
Are you buying for the customer? Really?
That line of reasoning led to these predictable questions: so exactly who is your customer? Are there segments you aren’t serving that you should? Are there segments you should stop wasting your time with?
We were able to go and look at their historic web-sales data (for the past two years down to the last two weeks) to find out who their customers really were. And surprise, there was no customer hesitancy there!
All they needed was to focus on the right segment. We changed the website to do just that.
Listen to good old (in this case a younger, “1.0 version”) Drucker:

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What Went Wrong

I’m still trying to understand what this economic meltdown is all about.
Here are a few good links:
When fortune frowned The Economist
Yes, It’s A Wreck, But We Can Fix It Newsweek
Financial crisis: World round-up BBC
Good Financial Information Matters More Than Ever Robert Schiller

Financial Leadership, the Missing Ingredient Rick Wartzman
Our Choice Nouriel Roubini
We Have the Tools to Manage the Crisis Paul Volcker
Good Policies Can Save the Economy Lee Ohanian
Fundamentalists versus Realists Paul Romer
The Stunning Collapse of Iceland Business Week
and here’s a “fun” look at another issue:
This stock collapse is petty when compared to the nature crunch Guardian Unlimited
Finally, here’s some humor: 5 financial crisis jokes from Marketplace >>
* 5. I went to buy a toaster, and it came with a bank.
* 4. Money talks. Trouble is, mine only knows one word: Goodbye.
* 3. How do you define optimism? A banker who irons five shirts on Sunday.
* 2. What’s the capital of Iceland? Answer: $3.50.
And the No. 1 financial crisis joke of the week is …
Q: What is the one thing Wall Street and the Olympics have in common?
A: Synchronized diving!

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Downturn 2008: Harvard Business Review’s Survival Guide

And now, a survival guide from HBR.
My favorite entries:
– Why Entrepreneurs Love a Downturn
– How to Market in a Recession
– Staying Green in a Tough Economic Climate
– Three Steps to Innovating in Struggling Industries
– America’s Addiction and the New Economics of Strategy
– Beyond the Banking Crisis: A Strategy Crisis
– Hard Times Demand Teamwork — Not an MVP
Non sequitur: What is the difference between Palin and a Muslim fundamentalist? Lipstick.

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What Obama Can Teach You About Your Business

This article really is a bit too skewed on the “social networking” side of things, but I do agree w/ what John Della Volpe is saying, that Obama’s “blue-ocean strategy” to get the youth involved (beginning with Iowa), and his brilliant use of technology and social networking to attract, engage, and involve people in the campaign has made all the difference.
But Obama can teach business a lot more than Web 2.0.
His decision-making is classic Peter Drucker. According to campaign adviser Susan Rice:
“He listens to various viewpoints. He elicits dissenting views. He weighs those rationally and pragmatically. But then he tends to make a relatively swift and clear decision.”
Which makes Obama an analytical decision-maker with a talent for delivering inspiring speeches.
Leadership 2.0 is what we call it.
ALSO:
McCain, on the other hand, is reckless. And his incompetent decision to choose a clearly incompetent Palin as his replacement is an insult to the office of the President and the American people. He just doesn’t have a clue!

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Leadership 2.0: Barack Obama versus John McCain

There’s an interesting interview with Ronald Heifetz about “the leader of the the future” in an old edition of Fast Company which made me think about the difference between Barack Obama and John McCain.
Here’s what made me sit up:
“Imagine the differences in behavior between leaders who operate with the idea that “leadership means influencing the organization to follow the leader’s vision” and those who operate with the idea that “leadership means influencing the organization to face its problems and to live into its opportunities.” That second idea — mobilizing people to tackle tough challenges — is what defines the new job of the leader.”
OK. There it is in black and white. The difference between Leadership 1.0 and 2.0. Sounds cheesy, but hey, it is reality.
Leadership 1.0: authoritarian, fear-driven, no dissent, command and control.
Leadership 2.0: participative, purpose-driven, dissent encouraged, guide and coach.
[I know, we could compile lists like this for days on end…]
But think about it. This is nothing more than McGregor’s old Theory X versus Theory Y.
God help this world if Theory X wins this time around!

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Friedman versus Senge: The Race for the Green Business Bestseller

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

And here’s his book: The Necessary Revolution: How Individuals And Organizations Are Working Together to Create a Sustainable World
Check out this interview with Senge>>
And this download>>
And here’s Friedman’s book pitch:

His book: Hot, Flat, and Crowded: Why We Need a Green Revolution–and How It Can Renew America
His website>>
And finally, a little column from Friedman>>
Exxon, your days are numbered.

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

Here’s Crispin Porter & Bogusky’s attempt to “bring back” Microsoft:

It’s the first in a series of ads designed to fight Apple’s “Mac vs. PC” comedy show. Will $300 million do the job?
C’mon Microsoft! You can’t let Apple do this to you:

The scary thing is there’s so much more.
The way I see it this isn’t about Vista at all. It’s about the next wave of competition, about how Microsoft will compete against Goople – Google apps on Apple hardware!

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Leadership Assessment: What John McCain can learn from GE

Does anyone believe that a Fortune 500 company would pick Sarah Palin as their CEO?
When Jack Welch transformed GE, he introduced several new criteria for evaluating executive leadership and performance. His successor, Jeffrey Immelt went through an exhaustive succession planning (er, vetting) process to replace him.
Here’s a look at GE’s leadership assessment matrix. The key attributes are:
– Vision
– Customer / Quality Focus
– Integrity
– Accountability / Commitment
– Communication / Influence
– Shared Ownership / Boundaryless
– Team Builder / Empowerment
– Knowledge / Expertise / Intellect
– Initiative / Speed
– Global Mind-set
Not bad. Does your company look at leadership this way?
Here are the details:
Vision
– Has developed and communicated a clear, simple, customer-focused Vision / direction for the organization.
– Forward-thinking, stretches horizons, challenges imaginations.
– Inspires and energizes others to commit to Vision. Captures minds. Leads by example.
– As appropriate, updates Vision to reflect constant and accelerating change impacting the business.
Customer / Quality Focus
– Listens to customer and assigns the highest priority to customer satisfaction, including internal customers.
– Inspires and demonstrates a passion for excellence in every aspect of work.
– Strives to fulfill commitment to Quality in total product / service offering.
– Lives Customer Service and creates service mind-set throughout organization.
Integrity
– Maintains unequivocal commitment to honesty / truth in every facet of behavior.
– Follows through on commitments; assumes responsibility for own mistakes.
– Practices absolute conformance with company policies embodying GEI&PS commitment to ethical conduct.
– Actions and behaviors are consistent with words. Absolutely trusted by others.
Accountability / Commitment
– Sets and meets aggressive commitments to achieve business objectives.
– Demonstrates courage / self-confidence to stand up for the beliefs, ideas, – Fair and compassionate yet willing to make difficult decisions.
– Demonstrates uncompromising responsibility for preventing harm to the environment
Communication / Influence
– Communicates in open, candid, clear, complete, and consistent manner – invites response / dissent.
– Listens effectively and probes for new ideas.
– Uses facts and rational arguments to influence and persuade.
– Breaks down barriers and develops influential relationships across teams, functions, and layers.
Shared Ownership / Boundaryless
– Self-confidence to share information across traditional boundaries and be open to new ideas.
– Encourages / promotes shared ownership for Team Vision and goals.
– Trusts others; encourages risk taking and boundaryless behavior.
– Champions Work-Out as a vehicle for everyone to be heard. Open to ideas from anywhere.
Team Builder / Empowerment
– Selects talented people; provides coaching and feedback to develop team members to fullest potential.
– Delegates whole task; empowers team to maximize effectiveness. Is personally a Team Player.
– Recognizes and rewards achievement. Creates positive / enjoyable work environment.
– Fully utilizes diversity of team members (cultural, race, gender) to achieve business success.
Knowledge / Expertise / Intellect
– Possesses and readily shares functional / technical knowledge and expertise. Constant interest in learning.
– Demonstrates broad business knowledge / perspective with cross-functional / multicultural awareness.
– Makes good decisions with limited data. Applies intellect to the fullest.
– Quickly sorts relevant from irrelevant information, grasp essentials of complex issues and initiates action.
Initiative / Speed
– Creates real and positive change. Sees change as an Opportunity.
– Anticipates problems and initiates new and better ways of doing things.
– Hates / avoids / eliminates “bureaucracy” and strives for brevity, simplicity, clarity.
– Understands and uses speed as a competitive advantage.
Global Mind-set
– Demonstrates global awareness / sensitivity and is comfortable building diverse / global teams.
– Values and promotes full utilization of global and work force diversity.
– Considers the global consequences of every decision. Proactively seeks global knowledge.
– Treats everyone with dignity, trust, and respect.
So, how do you measure up?
To me this is another dimension on the Ram Charan / Ben Franklin leadership model I blogged about a while back.
And now, sit back and listen carefully: