Anger and Work

This is not new news. But it still applies.
According to Donald Gibson of Fairfield University and Sigal Barsade of Yale University, one out of four employees is substantially angry at work. Their study “The Experience of Anger at Work: Lessons from the Chronically Angry,” indicates most workers are not so angry that they’re ready to cause the boss physical harm, but they are angry enough to sabotage him.
Why are employees angry at work? The most common cause of anger at work — cited by 11 percent of the survey respondents — was the actions of supervisors or managers.
Here are some “root-causes”:
– Employee was promised a raise, promotion or important project, and it did not happen.
– Employee was told to do something he felt was wrong or incorrect.
– Employee could not live up to a supervisor’s expectations, because the expectations were too high or continuously changing.
– Supervisor was a micromanager and criticized employee frequently.
– Employee felt better qualified and skilled than his supervisor.
– Another employee doing the same job made more money.
Take a few minutes. Take a deep breath. What two or three steps can you take today to make things better around you?

Why Do They Want My Phone Number?

Next time you go to the store and they ask you for your phone number when you’re checking out, just say “NO.”
Here’s an ABC News article to shed some light on the mess we’re in.
“The various data companies are trying to acclimate people to invasions of privacy. It started with the zip code and now it’s moved on to phone numbers,” said Chris Hoofnagle of the Electronic Privacy Information Center in San Francisco. “I’m willing to bet that retailers’ market research is showing a willingness of customers to share the telephone number, and that’s why it’s happening.”
It could open a person up to telemarketing — even if they are on the federal “do not call” registry. According to Hoofnagle, giving a phone number while making a purchase may establish a business relationship, and companies can call individuals on the “do not call” list with whom they have prior business relationships.
Susan McLaughlin, a spokeswoman for Toys R Us Inc., said its stores have asked for phone numbers for several years. She believes most customers have no problem voluntarily giving their numbers at the register — though it’s “no problem at all” if they decline. “It’s so we can send you offers, coupons, et cetera, and we don’t sell it to third parties,” she said. “I’d say the majority of people like getting coupons.”
The ToysRUs people just upset me. Next time they ask for a number, give them: 1-800-869-7787. That’s their “guest” line.
And don’t look to the government for help with privacy. They’re busy spying on you.

Top 13 Web 2.0 Moments of 2005

Richard Mc Manus has a great post on Web 2.0 highlights in 2005:
– Bloglines acquisition by Ask Jeeves and weblogsinc sale to AOL
– Amazon’s innovations- the Mechanical Turk and Alexa web services
– Microsoft embracing RSS (I’m not impressed with SSE, however)
– Asynchronous JavaScript + XML or AJAX
– Memeoradum and diggs.com
– Googlebase
– Yahoo acquires Flickr and del.icio.us
– eBay buys Skype
– Microsoft’s wakeup to software as a service (see leaked memo here)
– Web 2.0 Conference
– iTunes support of podcasting
– HousingMaps
– Tsunami-help blogs
Read the post here, and add your own highlights to the list!

Innocentive: Open Source Innovation?

The answer to your problem lies outside your company. Why? Because there are more smart people outside your company than in it.
That’s the premise behind InnoCentive, a web-based community matching top scientists to relevant R&D challenges facing leading companies from around the globe.
Here’s how it works:
– Companies contract with InnoCentive as “Seekers” to post R&D challenges to the Innocentive web site
– Each Challenge includes a detailed description and requirements, a deadline, and an award amount for the best solution.
– Award amounts are determined by the Seeker and range from $10,000 to $100,000. You can view the list of previous award recipients here.
– The name of the Seeker company posting the Challenge remains confidential and secure.
– Scientists worldwide are eligible to register on the web site as “Solvers.”
– Anyone may view summaries of Challenges at InnoCentive.com. But to view detailed descriptions and actually work on challenges, registration is required.
– To register as a Solver, scientists fill out a short online form, select a username and password, and log in.
– InnoCentive has registered scientists from over 170 countries around the world.
How about that for open source innovation? Vist the site >>

Pheed Read: RSS ads blow away Banner ads

Findings from a very interesting study on RSS advertising by Pheedo:
– Standalone RSS ads are far more successful than inline ads
– Placing RSS ads in every other post yields the highest percentage of click throughs
– RSS content CTR varies significantly based on day of the week
– Mid-week readership of RSS feeds highest
– RSS ads are outperforming similar Web ads
[standalone RSS ads= average CTR of 7.99% versus 20% to 1.17% CTR for rich-media ads]
– Bloglines leads RSS readers in market share
I must say I’m impressed by Pheedo.
Here are the details on their research.

The CFO View of IT


Says CFO magazine:
“The tightening of IT purse strings that followed the dot-com collapse forced most companies’ finance and IT departments to collaborate as they never had before, a trend that gained further momentum when Sarbanes-Oxley came along. One result, many predicted, would be a more formal and confidence-inspiring assessment of the value of IT investments, as finance contributed the analytical acumen that IT lacked. But rigor appears to be turning to rigor mortis; companies seem less satisfied that IT investments are producing the expected returns, and a number seem to be abandoning formal approaches altogether. Nor does it look like Sarbanes-Oxley is having the unifying effect that last year’s survey found, as the percentage who say the act has brought the two functions together declined from almost half last year to just over a third this year.
“Despite that, CFOs are in some ways surprisingly bullish on IT. More CFOs this year than last say they regard IT as strategic rather than as a utility, and spending plans are up this year compared with the same period last year. Our 2004 survey found that 16 percent of respondents said they planned to cut IT spending in the ensuing 12 months; this year that figure dropped to 10 percent, while those planning to increase IT budgets rose from 62 percent of respondents last year to 65 percent this year.”

Read the article.
CFOs do have their hands full. In many ways it is the CFO’s office that determines the agility and competitiveness of a company. How fast can the CFO make a decision? How centralized is that decision-making process? What’s your Return-on-CFOs?
Later today I’ll post an example of a company that’s totally changed the way it governs and has succeeded beyond all expectations. I have been tracking this company since 1995, and they have 14 straight years of double-digit growth. Hint: the company is Brazilian.

8 Big Ideas for the 21st Century

Coming soon in Ben Hammersley’s new book: “Octet: The Eight Big Ideas You Need to Understand in the 21st Century”
1. Information wants to be free (vs. copyright).
2. Zero distance (vs. borders).
3. Mass amateurisation (vs.censorship).
4. More is much more. (vs. network blocking).
5. True names (vs. identity cards & databases).
6. Viral behaviour (vs. more network blocking).
7. Everything is personal (vs. everything is trackable).
8. Ubiquitous computing (no privacy).
Hat-tip to Hugh at Gapingvoid.com

Sustainability: The Stumbling Block is Culture

From a back issue of Harvard Design Magazine:
Environmental prophets come in four types: the hysterics, who warn of the apocalypse, the assuagers, who adhere to hope, the disclaimers, who see no dire threat, and the fatalists, who see the future as steady, unavoidable, irreversible decline.
The first three types, the hysterics, the assuagers, and the disclaimers, dominate current discourse. Their views make for more effective hype for whatever public media share their political allegiances. The view of the fatalists is least palatable to society in general and the media in particular, which are thriving on a mix of fear and hope. In the absence of the fatalists, all kinds of compromises are considered able to promote sustainability, from the Kyoto Protocol to emissions trading to Smart Growth. Yet even their proponents admit that these measures cannot stop, let alone reverse, global climate change.
The reason for this is as plain as it is simple. The change in global climate is not caused by financial or technological factors alone and will not be solved just through financial or technological solutions. Global climate change results from the realities of Western, post-industrialist, capitalist culture. It is embedded in unsustainable lifestyles.
Also in the same article >>
The five material principles for a sustainable architecture:
1. Build less. Frei Otto wrote: “To build in a sustainable way means not to build at all.”(2) The replacement of existing built fabric cannot be the long-term goal of any society.
2. Everything built should be given as long a life expectancy as possible.
3. Reuse and recycling of material should be maximized.
4. Non-recyclable materials should be not be used in buildings.
5. Anything that is built should be retained, sustained, and maintained.
Read the article by Wilfried Wang.

Sense outta NonSense

Brand structure establishes the shape of how a company and its operating units and brands communicate…

also from Sensepage 9. Did I say it was brilliant?

Ram Shriram: On the Rise of India and China

The “fear of failure” is being replaced by the “urge to succeed” – that’s what Ram Shriram says of the cultural change taking place in both India and China. The focus on math and science is finally paying off in these countries.
Read his Stanford presentation ==> “Perspectives on the rise of India and China”
The US has chosen another road. And we are already paying the price… Here’s what Doug Smith says >>

The German Niceness Subsidy

Andrew Hammel has a great post on “kid-friendly” policy-making in Germany:
The German government showers money and benefits on people who have children. They’re allowed to take a”child-raising vacation” from work (i.e. to reduce their work-week to between 15 and 30 hours, if they choose), they get a per-child bonus called “child-money,” and starting in 2007 there will be a new kind of “parent-money.”
The exact opposite of the US.
Read the full post here.
Doesn’t this tie in neatly to “The ExecutiveTalent Revolt”?

Warming Up: Adidas’ +Teamgeist


Here’s the official spin from adidas:
The +Teamgeist is the Official Matchball of the 2006 FIFA World Cup. It’s the most accurate football ever produced. No other ball reacts so flawlessly shot after dribble after pass, in the air and on the ground.
• Revolutionary panel shape eliminates surface irregularities to create a perfectly round ball for greater accuracy
• Panels are thermally bonded to create a smooth, seamless kicking surface
• Complete underglass print significantly decreases wear of colors and design
• New carcass retains shape better for improved accuracy and power
• FIFA approved with highest FIFA rating
• 100% PU leather
• Imported
Carcass??
BTW- that’s $130.00
Here’s an idea for a true global index: What’s the cost of the average [actually used by kids] soccer ball in your country? In the US it’s $19.95 for a decent kick-about ball. In Europe? China?
UPDATE:: Reaction to the new ball:
“It is the way a ball should be made,” – David Beckham, England
“The balls design is great, it is going to be a success,” – Kaka, Brazil
“I like this ball a lot because of its return to the more traditional colors,” – Alessandro Nesta, Italy
“When you kick it, it goes in the right direction,” – Zinedine Zidane, France

Craig Barrett: Where the Science Nerds At?

“In China engineering accounted for 65% of all science and engineering degrees; in South Korea for 58%; and in Japan for 29%. In the U.S. that figure is less than 5%.”
That’s Craig Barrett talking about the dearth of students signing up for scientific degrees in BusinessWeek.
He goes on:
“While the number of jobs requiring technical skills is increasing, fewer American students are entering — and graduating from — degree programs in science, math, and engineering.
Why does this matter? Science and technology are the engines of economic growth and national security in the U.S., and we are no longer producing enough qualified graduates to keep up with the demand. ”
Intel spends $100 million a year on education programs- to create a deeper pool of qualified talent at home. Is it working?
I wonder how much Microsoft is spending… or Exxon-Mobil?
And when they spend the money, how do they measure performance?
Read the article >>
I posted on this earlier: Have We Given Up on Science?

Edge View: John Hagel’s Visit to Dubai

“Why should business executives care about what is happening in the container port business in Dubai? It provides insight into much more fundamental trends that are re-shaping our global economy at an awesome pace. It shows that countries and companies on the edge have an opportunity to become significant global players by understanding and harnessing the forces at work. It also drives home that our most well-known and well-established companies, even those granted royal charters in 1840, are vulnerable to these same changes and can succumb quickly to the initiatives of more aggressive competitors, even those just formed in 1999.”
read John Hagel’s post here >>

Harold Pinter’s Nobel Lecture: The Pen Against the Sword

From Harold Pinter – Nobel Lecture
Art, Truth & Politics

© THE NOBEL FOUNDATION 2005
In 1958 I wrote the following:
‘There are no hard distinctions between what is real and what is unreal, nor between what is true and what is false. A thing is not necessarily either true or false; it can be both true and false.’
I believe that these assertions still make sense and do still apply to the exploration of reality through art. So as a writer I stand by them but as a citizen I cannot. As a citizen I must ask: What is true? What is false?
Truth in drama is forever elusive. You never quite find it but the search for it is compulsive. The search is clearly what drives the endeavour. The search is your task. More often than not you stumble upon the truth in the dark, colliding with it or just glimpsing an image or a shape which seems to correspond to the truth, often without realising that you have done so. But the real truth is that there never is any such thing as one truth to be found in dramatic art. There are many. These truths challenge each other, recoil from each other, reflect each other, ignore each other, tease each other, are blind to each other. Sometimes you feel you have the truth of a moment in your hand, then it slips through your fingers and is lost.
I have often been asked how my plays come about. I cannot say. Nor can I ever sum up my plays, except to say that this is what happened. That is what they said. That is what they did.
…….
I have said earlier that the United States is now totally frank about putting its cards on the table. That is the case. Its official declared policy is now defined as ‘full spectrum dominance’. That is not my term, it is theirs. ‘Full spectrum dominance’ means control of land, sea, air and space and all attendant resources.
The United States now occupies 702 military installations throughout the world in 132 countries, with the honourable exception of Sweden, of course. We don’t quite know how they got there but they are there all right.
The United States possesses 8,000 active and operational nuclear warheads. Two thousand are on hair trigger alert, ready to be launched with 15 minutes warning. It is developing new systems of nuclear force, known as bunker busters. The British, ever cooperative, are intending to replace their own nuclear missile, Trident. Who, I wonder, are they aiming at? Osama bin Laden? You? Me? Joe Dokes? China? Paris? Who knows? What we do know is that this infantile insanity – the possession and threatened use of nuclear weapons – is at the heart of present American political philosophy. We must remind ourselves that the United States is on a permanent military footing and shows no sign of relaxing it.
Many thousands, if not millions, of people in the United States itself are demonstrably sickened, shamed and angered by their government’s actions, but as things stand they are not a coherent political force – yet. But the anxiety, uncertainty and fear which we can see growing daily in the United States is unlikely to diminish.
I know that President Bush has many extremely competent speech writers but I would like to volunteer for the job myself. I propose the following short address which he can make on television to the nation. I see him grave, hair carefully combed, serious, winning, sincere, often beguiling, sometimes employing a wry smile, curiously attractive, a man’s man.
‘God is good. God is great. God is good. My God is good. Bin Laden’s God is bad. His is a bad God. Saddam’s God was bad, except he didn’t have one. He was a barbarian. We are not barbarians. We don’t chop people’s heads off. We believe in freedom. So does God. I am not a barbarian. I am the democratically elected leader of a freedom-loving democracy. We are a compassionate society. We give compassionate electrocution and compassionate lethal injection. We are a great nation. I am not a dictator. He is. I am not a barbarian. He is. And he is. They all are. I possess moral authority. You see this fist? This is my moral authority. And don’t you forget it.’
A writer’s life is a highly vulnerable, almost naked activity. We don’t have to weep about that. The writer makes his choice and is stuck with it. But it is true to say that you are open to all the winds, some of them icy indeed. You are out on your own, out on a limb. You find no shelter, no protection – unless you lie – in which case of course you have constructed your own protection and, it could be argued, become a politician.
I have referred to death quite a few times this evening. I shall now quote a poem of my own called ‘Death’.
Where was the dead body found?
Who found the dead body?
Was the dead body dead when found?
How was the dead body found?
Who was the dead body?
Who was the father or daughter or brother
Or uncle or sister or mother or son
Of the dead and abandoned body?
Was the body dead when abandoned?
Was the body abandoned?
By whom had it been abandoned?
Was the dead body naked or dressed for a journey?
What made you declare the dead body dead?
Did you declare the dead body dead?
How well did you know the dead body?
How did you know the dead body was dead?
Did you wash the dead body
Did you close both its eyes
Did you bury the body
Did you leave it abandoned
Did you kiss the dead body
When we look into a mirror we think the image that confronts us is accurate. But move a millimetre and the image changes. We are actually looking at a never-ending range of reflections. But sometimes a writer has to smash the mirror – for it is on the other side of that mirror that the truth stares at us.
I believe that despite the enormous odds which exist, unflinching, unswerving, fierce intellectual determination, as citizens, to define the real truth of our lives and our societies is a crucial obligation which devolves upon us all. It is in fact mandatory.
If such a determination is not embodied in our political vision we have no hope of restoring what is so nearly lost to us – the dignity of man.

Read the whole thing and weep.

The ExecutiveTalent Revolt

From a great article in Forbes:
It’s a lesson corporate America needs to learn before an entire generation of senior talent melts down or decides to stay home. The 60-hour weeks once thought to be the path to glory are now practically considered part-time. Spouses, kids, friends, prayer, sleep—time for things critical to human flourishing is being squeezed by longer hours at the top. Says Bill George, a self-described 60-hour man who ran medical-device leader Medtronic for a decade and who now serves on the boards of Goldman Sachs, ExxonMobil, and Novartis: “It didn’t use to be this intense. It got much worse starting 15 years ago, when we went to this 80-hour week.” Top executives are increasingly strung out, he and others say. Service firms in consulting, law, and investment banking have built 80-hour weeks into their businesses. If it keeps up, the toll could make itself felt not only on companies but on the nation, eroding productivity growth in an era when global competition has never been more intense.
Indeed, dozens of interviews with top executives, consultants, and researchers suggest that a revolt of talent is brewing, and that it’s time to reenergize the stale “work-life” debate by starting at the top.
What will it take to make headway on this agenda? Business leaders need to do four things. First, quit defining the desire for doable jobs as a “women’s issue.” Men want this too. Second, start viewing efforts to humanize senior jobs as a competitive advantage and business necessity, not as one-time accommodations for the CEOs’ pets. Third, realize that progress is actually possible; there are examples to show that work at the top can be retooled. Finally, make it safe within companies and firms to talk about these things. “Businesses need to be 24/7,” says Xerox CEO Anne Mulcahy. “Individuals don’t.”

Note:
Consider some facts. While every red-blooded American knows that the U.S. has the most productive economy in the world, the truth is that in 2002 it was actually less productive per hour worked than countries that are supposed to be slackers: Belgium, France, Germany, Norway, and the Netherlands. True, the U.S. had more output per person, but that’s only because a bigger share of Americans worked, and many Americans work longer hours.
Read this remarkable article here >>

Innovation: inversely proportional to size of budget


BAH gives us a “special report” on innovation by Barry Jaruzelski, Kevin Dehoff, and Rakesh Bordia: “Money Isn’t Everything.”
“The myth that higher R&D spend translates into competitive advantage has been around for decades, but it appears to be particularly strong now. Pick up any business magazine or newspaper. You’ll find ample evidence of the belief in the effectiveness of larger budgets, for both corporate and national competitiveness:
“U.S. spending on R&D will also have to increase if the country wants to remain technologically dominant.” —Fortune, July 2005
“We need at NEC to increase our R&D spending by as much as 50 percent to keep ahead of the competition.” —NEC Corporation (#41 on the list of 1000) senior vice president, quoted in The Age, July 2005
“The European Commission will today appeal to E.U. countries to increase spending on research and development, or face being out-paced by competitors such as China.” —Financial Times, July 2005
“[Yahoo] spends as heavily on product development and R&D as Google and Microsoft…falling behind in this arms race would spell big trouble.” —Fortune, August 2005

The results of the recent study of the Booz Allen Hamilton Global Innovation 1000 — the 1,000 publicly held companies from around the world that spent the most on research and development in 2004 — may provoke a crisis of faith. The study, which may be the most comprehensive effort to date to assess the influence of R&D on corporate performance, suggests that nonmonetary factors may be the most important drivers of a company’s return on innovation investment.
The major findings:
Money doesn’t buy results. There is no relationship between R&D spending and the primary measures of economic or corporate success, such as growth, enterprise profitability, and shareholder return.
Size matters. Scale leads to advantage. Larger organizations can spend a smaller proportion of revenue on R&D than can smaller organizations, and take no discernible performance hit.
You can be too rich or too thin. Spending more does not necessarily help, but spending too little will hurt.
There isn’t clarity on how much is enough. Instead of clustering into any coherent pattern, R&D budget levels vary substantially, even within industries. This suggests that no single approach to spending money on innovation development is universally recognized as the most effective strategy.
It’s the process, not the pocketbook. Superior results, in most cases, seem to be a function of the quality of an organization’s innovation process — the bets it makes and how it pursues them — rather than the magnitude of its innovation spending.
Collaboration is key. The link between spending and performance tends to be strongest in those areas most under the control of the R&D silo, such as product design, and weakest in those areas where cross-functional collaboration is most difficult, such as commercialization.
Meanwhile, the big boys keep flushing their money down the toilet:

Read the full report. Take notes. Forward it to your CEO.
see my post: “Have We Given Up on Science?”

Fantasy News: The Great Uncyclopedia

Meaning. Meaningful. Meaningless. The news is fiction. Lies are truth. What happens when the news becomes “magical realism”? The largest post-modern mashup of thought and ideas: the Uncyclopedia.
a few samples:
The How-To section [ see subsection: How to Make Up Quotes ]
Attack of the 500 foot Jesus
United States of America
Bill Gates
What’s scary is that the Uncyclopedia reminds me of the “new and improved” Nightline, now that Ted Koppel is gone. Koppel- can you believe how they’ve destroyed your show in so short a time? The work of decades destroyed in days.
“Ignorance is Strength!” see UnNews
“I get better news coverage watching Entertainment Tonight” – Oscar Wilde

The Executive Guide to Business Service Management

John Hagel has just written an insightful paper on Business Service Management, as they call it.
What is Business Service Management? The different vendors describe it in their own terms, but basically it’s about connecting your business processes to your IT processes, so you know the business impact (in $) when a server goes down. You could say that BSM makes IT accountable, finally.
Check it out here (registration required).

McKinsey: Knowledge Worker Productivity- The Key to Competitive Advantage?

McKinsey spits out an interesting article today- “The next revolution in interactions.”
“In today’s developed economies, the significant nuances in employment concern interactions: the searching, monitoring, and coordinating required to manage the exchange of goods and services. Since 1997, extensive McKinsey research on jobs in many industries has revealed that globalization, specialization, and new technologies are making interactions far more pervasive in developed economies. Currently, jobs that involve participating in interactions rather than extracting raw materials or making finished goods account for more than 80 percent of all employment in the United States. And jobs involving the most complex type of interactions—those requiring employees to analyze information, grapple with ambiguity, and solve problems—make up the fastest-growing segment.”
What they’re saying is that knowledge work is up, manual work is down– and they do a good job of breaking this down by industry.
“Over this past year, we looked closely at different kinds of interactions. Companies in many sectors are hiring additional employees for more complex interactions and fewer employees for less complex ones. For instance, frontline managers and nurses—who must exercise high levels of judgment and often draw on what economists call tacit knowledge, or experience- are in great demand. Workers who perform more routine interactions, such as clerical tasks, are less sought after. In fact, companies have been automating and outsourcing jobs that involve many of these transactional interactions.
“The shift from transactional to tacit interactions requires companies to think differently about how to improve performance—and about their technology investments. Moreover, the rise of tacit occupations opens up the possibility that companies can again create capabilities and advantages that rivals can’t easily duplicate.”
Worth reading.
The McKinsey folk need to spend some time chatting with Tom Davenport. His latest book – Thinking for a Living: How to Get Better Performance and Results from Knowledge Workers – gets into this in some detail.

Worst Practices in Business Blogging

“The days are over when a business could market a crappy product or treat their customers like marks and assume that the worst that would happen is that they get a few angry letters they could then just dump in the round file.”
So says David Kline in this post “Don’t Mess With the Blogosphere!”
Also: “How many more battered and bloody companies will have to litter the corporate landscape before business wakes up to the new, customer-empowered marketplace we’re living in?”
Good question, David.

Patrick Dixon: Tribal Elders Take Over the Future?

Patrick Dixon warns businesses (and governments) about the socio-demographic changes just around the corner:
“Your company may have a reputation for brilliant leadership, outstanding innovation, clever branding and effective change management, but the business could fail if the world changes and you are unprepared.
“Many debates about the future are about timing, such as the uptake of technology. But the future is also about emotion. Reactions to events such as bird flu are often more important than the events themselves.
Read Dixon’s FT column: “Wake up to stronger tribes and longer life.” See the great little sidebar on futurology.

The 80-20 Rule Online: 18% of Shoppers do 46% of Buying

Nielsen//NetRatings reports that nearly a fifth of the online buying population, or 18 percent, accounts for nearly half, or 46 percent, of total online spending. These buyers, dubbed “Most Valuable Purchasers” (MVPs) by Nielsen//NetRatings, spend more dollars online and make more purchases on the Internet than the rest of the online buying population.
The Nielsen//NetRatings MegaPanel online retail study segmented online shoppers into four categories based on the amount of their online spending (low or high) and their frequency of purchases (low or high). The MVPs, shoppers who spent the most money online and made the largest number of purchases, comprised 18 percent of the online buyers, driving 46 percent of total online spending. In comparison, those spending the fewest dollars online and making the fewest purchases made up the majority, or 55 percent, of online buyers; this group accounted for 21 percent of online purchases.
MVPs are heavy users of comparison shopping tools as compared to other online buying segments. In addition, they skew towards a higher household income, are more likely to be connected via a broadband connection, and are heavier Internet users in both overall time spent online and time spent on retail Web sites.
Takeaway: E-tailers should focus on building extraordinary online experiences for their MVPs. Also their demand generation tactics should target the MVP crowd.
Read the press release for details >>

BusinessWeek: Holiday Tricks

BusinessWeek reports:
“Forrester Research Inc. says online retail sales this holiday will surge 25%, to $18 billion. The increasingly strong profitability of Net commerce is giving retailers the chance to experiment with a stockingful of new sales and marketing tactics. They’re tapping into technologies such as blogs, social networking, and wireless phones to draw shoppers to their sites.
“The experiments are coming from startups to Web giants alike. Yahoo! Inc. is testing Shoposphere, a networking site within Yahoo! Shopping that offers thousands of reviews, blogs, and shopping lists generated by members. Rob Solomon, a vice-president at Yahoo! Shopping, says relying on users lets Yahoo serve markets too small to command space on its front pages.
and
“Yub.com, a site with thousands of product reviews, offers visitors cash-back rewards of up to 10% when they make purchases at more than 60 other sites, including Macy’s and cosmetics retailer Sephora. Yahoo plans to let people earn cash for posting reviews that lead other users to make purchases.”
Read the article >

What Would the Lord Sell?

The Economist says it all: “Onward, Christian shoppers
“The reason for corporate America’s new-found interest in religion is simple: the market is booming. Packaged Facts, a market-research company, estimates that the “religious products” market was worth $8.6 billion in 2003 and will grow to $8.6 billion in 2008. Christian radio has seen its market share expand from 2.2% in 1999 to 5.5% today. The Association of American Publishers reports that the market for religious books grew by 37% in 2003. The definition of religious books is vague—but religious publishing is undoubtedly growing much faster than the industry as a whole.”
Moneylenders in the temple?

Will Britain be the next Newfoundland?

From the Economist:
An ocean current in the North Atlantic is getting weaker. That may be bad news for north-west Europe…
“Those who worry about climate change worry about many things: rising temperatures, rising sea levels, changes in rainfall and stronger storms, for example. One of the things they worry about most, though, is changes in the circulation of the ocean’s currents. That is because these currents are the main way that heat is redistributed from the tropics, where there is a lot of it, to the polar regions, where there is not. If the currents shifted, it would mean that temperatures in some parts of the world changed much more than they would merely as a result of the local atmosphere warming up as heat-trapping greenhouse gases accumulate. Indeed, it could mean that in some places temperatures fell, rather than rising.”
“The result, when the numbers were crunched, suggests that the volume of water being carried by the Atlantic Conveyor Belt has dropped by 30%.
“If that is correct, and more importantly, if it were sustained, the result for places such as Britain would be a 1°C drop in average temperature—enough to be noticeable. If it were not merely sustained, but got bigger (and the 2004 figure was larger than that for 1998), the temperature drop would be greater. And if the conveyor belt stops altogether, as it has in the past on more than one occasion, Britain’s climate would come to resemble that of Newfoundland. The questions, of course, are why is this happening, and can anything be done?”
Will Britain freeze?
Read all about it.

The Online Holiday Shopping Rush

The fastest growing retail category on the day after Thanksgiving was toys/video games, with a 152 percent week-over-week growth. Consumer electronics followed close behind, and computer hardware/software rounded out the top three.
Daily Percent Change from11/18/05 to 11/25/05
Toys/Video Games 151.8%
Consumer Electronics 142.0%
Computer Hardware/Software 101.8%
Apparel 99.0%
Flowers and Gifts 95.3%
Home and Garden 87.3%
Shopping Comparison/Portals 84.0%
Jewelry 71.3%
Retail 40.5%
Books/Music/Video 3.8%
Total (across 10 categories) 38.7%
Source: Nielsen//NetRatings Holiday eShopping Index, November 2005

Top 50 Business Brains: Step Aside, Peter Drucker – it’s Michael Porter

The most influential living management guru is Michael E. Porter, head of Harvard Business School’s Institute for Strategy and Competitiveness, according to the rankings of The Thinkers 50 2005.
The Thinkers 50 ranking is based on the votes of 1,200 business people, consultants, academics, MBA students and visitors to the project’s website. Nonetheless, Professor Porter only just made it to the top. Had the ranking been compiled a few weeks earlier, the title would have gone to Peter Drucker for the third successive year. But the father of modern management died on November 11 at the age of 95…
read the Times article >>
The Top 50 Business Brains
1 Michael Porter (2)* Harvard strategy specialist
2 Bill Gates (20) Founder of Microsoft
3 C. K. Prahalad (12) LBS strategy man
4 Tom Peters (3) Leadership consultant
5 Jack Welch (8) GE’s ex-CEO and celebrity
6 Jim Collins (10) Author of Good to Great
7 Philip Kotler (6) Kellogg’s marketing guru
8 Henry Mintzberg (7) Promotes Managers not MBAs
9 Kjell Nordstrom & Jonas Ridderstrale (21) Funky Business exponents
10 Charles Handy (5) British portfolio worker
11 Richard Branson (34) Entrepreneur and Virgin flyer
12 Scott Adams (27) creator of Dilbert
13 Thomas Stewart (37) Intellectual Capital author
14 Gary Hamel (4) Strategy consultant
15 Chan Kim & Renée Mauborgne (31) Blue Ocean Strategy duo
16 Kenichi Ohmae (19) Japanese strategy master
17 Patrick Dixon (46) Futurist and change guru
18 Stephen Covey (16) Knows The 7 Habits of Highly Effective People
19 Rosabeth Moss Kanter (9) Harvard’s change manager
20 Edward De Bono (35) Lateral thinker and author
21 Clayton Christensen (22) Harvard’s new-tech guru
22 Robert Kaplan & David Norton (15) Balanced scorecard creators
23 Peter Senge (14) Learning organisation inventor
24 Ram Charan (-) Coach to the CEOs
25 Fons Trompenaars (50) Intercultural management man
26 Russ Ackoff (-) Specialist of systems thinking
27 Warren Bennis (13) Humanist leadership guru
28 Chris Argyris (18) Action and learning guru
29 Michael Dell (33) Dell Computer’s founder
30 Vijay Govindarajan (-) Tuck’s strategy innovator
31 Malcolm Gladwell (-) Blink and Tipping Point guru
32 Manfred Kets De Vries (43) Psychoanalytic economist
33 Rakesh Khurana (-) Harvard labour market guru
34 Lynda Gratton (41) LBS people and strategy guru
35 Alan Greenspan (42) Head of US Federal Reserve
36 Edgar Schein (17) MIT organisational psychologist
37 Ricardo Semler (36) Radical CEO of Semco
38 Don Peppers (48) Customer relationship man
39 Paul Krugman (40) Economist and columnist
40 Jeff Bezos (39) Amazon’s main man
41 Andy Grove (26) One of the Intel founders
42 Daniel Goleman (29) Emotional intelligence inventor
43 Leif Edvinsson (-) Professor of intellectual capital
44 James Champy (25) Advocate of re-engineering
45 Rob Goffee & Gareth Jones (-) Authentic leaders
46 Naomi Klein (30) No Logo author
47 Geert Hofstede (47) Cultural expert
48 Larry Bossidy (-) Chair of Honeywell
49 Costas Markides (-) LBS strategy professor
50 Geoffrey Moore (38) Hi-tech marketing man
* 2003 ranking in brackets
My opinion: this is a watered-down version of Tom Davenport’s Guru Index in “What’s the Big Idea?”
UPDATE
Stuart Crainer tells us that “The Thinkers 50 ranking actually pre-dates Tom Davenport’s. It first appeared in 2001 and is updated bi-annually.”
The methodology behind the standings is shown below (thanks, Patrick Dixon). So, I take back what I said about this being “watered down”… [I just wish they ranked the top 200 nerds, instead of just 50!]
1. ORIGINALITY OF IDEAS
Are the ideas and examples used by the thinker original?
2. PRACTICALITY OF IDEAS
Have the ideas promoted by the thinker been implemented in organizations? And, has the implementation been successful?
3. PRESENTATION STYLE
How proficient is the thinker at presenting his/her ideas orally?
4. WRITTEN COMMUNICATION
How proficient is the thinker at presenting his/her ideas in writing?
5. LOYALTY OF FOLLOWERS
How committed are the thinker’s disciples to spreading the message and putting it to work?
6. BUSINESS SENSE
Do they practice what they preach in their own business?
7. INTERNATIONAL OUTLOOK
How international are they in outlook and thinking?
8. RIGOR OF RESEARCH
How well researched are their books and presentations?
9. IMPACT OF IDEAS
Have their ideas had an impact on the way people manage or think about management?
10. GURU FACTOR
The clincher: are they, for better or worse, guru material by your definition and expectation?

The Globalization Index: How Global is Your Country?


The Global Top 20
1. Singapore
2. Ireland
3. Switzerland
4. United States
5. Netherlands
6. Canada
7. Denmark
8. Sweden
9. Austria
10. Finland
11. New Zealand
12. United Kingdom
13. Australia
14. Norway
15. Czech Republic
16. Croatia
17. Israel
18. France
19. Malaysia
20. Slovenia
The A.T. Kearney/FOREIGN POLICY Globalization Index™ explores the relationships between a country’s global integration and its levels of public education spending, political freedom, perceived corruption, and susceptibility to terrorism. The results show that:
– On average, more globally integrated countries spend more on public education. This relationship was particularly strong in developing countries.
– Citizens of globally integrated countries also enjoy greater political rights and civil liberties. And globalization may keep politicians honest, as the adoption of higher international standards for transparency tends to discourage corruption and increase government efficiency.
– Opening a country’s borders alone does not make the country more vulnerable to terrorism. Little correlation was found between a country’s level of global integration and the number of significant terrorist attacks on its soil.
Sounds to me like the US is going backwards not forwards in this area. Funny- we’re global when it comes to military incursions and insular when it comes to business.
The study finds that the United States rose on the strength of its growth in Internet hosts and secure servers, which are enabling factors for continued technological integration. But it was much less open in the economic realm, lagging behind in trade and foreign direct investment (FDI), due in part to a large and vibrant domestic market.
Another finding: in political and diplomatic terms the United States ranked 57th of the 62 ranked countries when it comes to signing international treaties.
About the Index: The A.T. Kearney/FOREIGN POLICY Magazine Globalization Index ranks 62 countries representing 85 percent of the world’s population, based on 12 variables grouped in four categories: economic integration, personal contact, technological connectivity, and political engagement.
How it Works: The index quantifies economic integration by combining data on trade and foreign direct investment. Technological connectedness is gauged by counting Internet users, Internet hosts, and secure servers. Political engagement is assessed by taking stock of the number of selected international organizations and the number of selected international treaties that each country signs, as well as each country’s financial and personnel contributions to U.N. peacekeeping missions and levels of governmental transfers. Personal contact is charted by looking at a country’s international travel and tourism, international telephone traffic and cross-border transfers, including remittances.
FREE FOOD: Download the report here. Get the detailed data here.

The Stupidity of GM

“Performance in our crazy world is helped through learning from others. Suggestion: Take a look at how your organization’s resources and talents line up against the evolving picture of customer needs. Then evaluate your efforts against a “NOT GM” scale. The better you do — the more your strategy is unlike GM’s — the better your organization’s future and performance is likely to be.”
So says Doug Smith in this brilliant and sad analysis of stupidity at GM.
Blog or no blog, Bob Lutz, the vice chairman of product development at General Motors is not doing his job. Maybe he should stop blogging and focus on his customers’ needs! Here’s what he’s blogging on
Just how sick is GM?

Harvard: “Business! Start your Blogging”

“Bloggers have damaged a number of companies, but it’s time to think of the blog as your friend. Skillful blogging can boost your company’s credibility and help it connect with customers.”
Finally, the folks at Harvard think the blogging is OK for business. Thanks for the green light, but I still don’t see Michael Porter or Clayton Christensen blogging, or Dorothy Leonard for that matter… what’s up with that? Harvard, time to practice what you preach.
Here’s why businesses may want to blog:
“…a blog is an incredibly effective yet low-cost way to:
Influence the public “conversation” about your company: Make it easy for journalists to find the latest, most accurate information about new products or ventures. In the case of a crisis, a blog allows you to shape the conversation about it.
Enhance brand visibility and credibility: Appear higher in search engine rankings, establish expertise in industry or subject area, and personalize one’s company by giving it a human voice.
Achieve customer intimacy: Speak directly to consumers and have them come right back with suggestions or complaints—or kudos.”
Here’s their blogging endorsement.

Leadership Development: The Talent War

Growing Talent as if your Business Depended on It” by Jeffrey M. Cohn, Rakesh Khurana and Laura Reeves.
The authors explain what makes a successful leadership development program, based on their research over the past few years with companies in a range of industries. They describe how several forward-thinking companies (Tyson Foods, Starbucks, and Mellon Financial, in particular) are implementing smart, integrated, talent development initiatives.
Companies whose boards and senior executives fail to prioritize succession planning and leadership development end up experiencing a steady attrition in talent and becoming extremely vulnerable when they have to cope with inevitable upheavals – integrating an acquired company with a different operating style and culture, for instance, or reexamining basic operating assumptions when a competitor with a leaner cost structure emerges. Firms that haven’t focused on their systems for building their bench strength will probably make wrong decisions in these situations.
Personally, I think companies need to develop their workers as well, not just their leaders. That’s the real problem.
Also, most companies make leadership development an HR function. That’s another problem.
It’s the CEO who needs to develop leaders across the company. Remember Jack Welch and Crotonville?
And, oh, I forgot about executive pay. Our leaders are too busy lining their pockets to lead…

Tom Davenport on Personal Knowledge Management

Says TD: “Most interventions to improve performance in business are at the organizational or process level, but it doesn’t have to be that way. We can also improve individual capabilities. Ultimately, knowledge worker performance comes down to the behaviors of individual knowledge workers. If we improve their individual abilities to create, acquire, process and use knowledge, we are likely to improve the performance of the processes they work on, and the organizations they work for.”
Right on! Read this insightful post on Tom Davenport’s blog- BabsonKnowledge.org.

The Economist: Fat Turkey Takes All the Gravy


Says the Economist:
“Executive compensation in America—already far ahead of the rest of the world, despite the best efforts of overseas managers to catch up—is now rising inexorably again. In fiscal year 2004 the total compensation of the median American company boss rose in every industry, by between 9.7% in commercial banking and 46.1% in energy, according to a new report by the Conference Board, a research organisation. In the big companies that comprise the S&P 500 index, median total chief-executive compensation increased by 30.2% last year, to $6m, compared with a 15% rise in 2003, according to a study published last month by the Corporate Library, a firm that tracks corporate-governance data.”
One of the interviewees – Bob Pozen, chairman of MFS Investment Management, is pissed off at executive pay packages that reward bosses generously even if they fail. He is extremely critical of the role of compensation consultants. They, he says, tend to be chosen by the chief executive, and to drive up pay by recommending that the top man should be paid more than his peers, having chosen a group of peers whose pay errs on the high side.
Hmmm. Can we outsource the CEO to a low-cost country? Is there no cure for Enron-ititis? Read the full article.
Maybe that’s why Peter Drucker wasn’t so popular at the end. He called this “looting.”
The last word – again from the Economist: “…hell is more likely to freeze than bosses’ pay.”