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February 29, 2008

Newt Gingrich on Real Change

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In an packed presentation to the National Association of Workforce Boards, Gingrich summarized five steps to achieve real action amidst fierce opposition (Gingrich):

  1. Doing more of what you are doing now is insanity. Do something different. Very different.
  2. Have an unsolvable problem? Make it bigger, not smaller. Think of all the ramifications of the problem if you do nothing, or just a little sliver of what is really required.
  3. Real change requires real change. Don't put up with less than real change.
  4. Cheerful persistence is key. It's harder than you think.
  5. When speaking in disagreement say, "Yes, yet..." not "No, because." It is amazing how a negative attitude kills real change. 

Gingrich recommended three books as crucial to the message:

  • Guiliani's Leadership
  • Bratten's Turnaround and, most of all,
  • Lewis' Moneyball.

Gingrich,Newt. Real Change. Presentation to the National Association of Workforce Boards, 25 February 2008.

Joysticks Aren't Just For Video Games

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Toyota's Material Handling Division had a problem we'd all like to have. Its old product line was at least six years old and still very profitable. Since it entered the lift truck market in 1967, Toyota's share has risen to number one in the US with a twenty percent share. No one was complaining about the old line, but it was time to make changes. The real question, however, was, "What changes?"

Toyota never does anything without talking to folks, especially customers, and examining the situation very carefully. Three themes presented themselves (Wood): 

  • The demographics of the final customers for their lift trucks were getting younger, lots younger.
  • Consumers finally were waking up to the fact that energy usage couldn't continue to grow without major changes.
  • Safety is still of prime importance to buyers.

What to do? The market research pointed to thematic responses:

DESIGN

The new fork lift incorporated features to younger entice users who were very likely to be playing with video games during their off times. The coolest feature? Joy stick controls mimicking those on video games.

GREEN

Toyota instituted a new green initiative promoting Toyota's green awareness. One big feature was its intent to plant 20,000 trees on Arbor Day. Of course, the new design for the new Eight Series of lift incorporated many energy saving features. In certain sectors of the lift business, large portions of the trucks were battery powered.

SAFETY

Lower profile, electronic controls, tilt control, speed control and height controls add up to safer fork lifts with better safety records.

The new Series Eight forklifts launched successfully around the world. Design, environment responses and safety initiatives all played a part in the successful launch.

Wood, Brett. Grand Strategy - Product Development: Toyota Fork-Lifts - A Case Study. Presentation to the Orange County Chapter of the Association for Strategic Planning. 22 January 2008.

Joystick controller: http://www.toyota8series.com/ergonomics.htm

The Business of Books: Pink's New Book

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Launching a new book title is never easy. Pink, in launching his third title The Adventures of Johnny Bunko, is entering new ground. He is mimiking the Japanese manga-style with a fully illustrated, business comic book targeting the twenty-something crowd who are familiar with the genre. His six lessons (Berfield, 73):

  • There is no plan.
  • Think strengths, not weaknesses.
  • It's not about you.
  • Persistence trumps talent.
  • Make excellent mistakes.
  • Leave an imprint.

I saw Pink speak at the National Association of Workforce Boards in Washington D. C. in February. The talk was supposedly about Pink's last book A Whole New Mind, but, looking back I realize that it was really a launch speech meant to drum up interest for the new book. It was subtle, but the picture of the new book dominated the closing screens of his presentation. Not quite a classic National Speakers Association process with piles of books available in the back of the room, Pink made his points about using manga texts with younger folks to a receptive crowd of about sixteen-hundred.

I'd rate the speech a success. We'll see if the book makes it, especially as manga hasn't really gone mainstream in the U. S.

Berfield, Susan. Career Advice From a Comic Book. Graphic books on business are already a hit in Japan. With Johnny Bunko, the genre heads for the U.S.  BusinessWeek. 3 March 2008. 073. http://www.businessweek.com/magazine/content/08_09/b4073073477127.htm?chan=search

Pink, Daniel H. The Adventures of Johnny Bunko: The Last Career Guide You'll Ever Need. Riverhead Trade Paperback. 2008.

February 21, 2008

On Jimmy Carter's Poetry

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Gaillard writes a touching synopsis of Carter's legacy. There has been some controversy, a bit of "toughing it out" to make the Carter Center happen, lots of leadership all over the world, and, surprisingly, good poetry.

Carter's mentor on poetry, Miller Williams, had this to say (Gaillard, 88), "I was impressed by what good use he made of the time [Carter and Williams spent together}, and what he was able to pick up quickly. As a poet, he is well worth reading. All his poems begin as Jimmy Carter's and end as the reader's. That's the line, I think, between an amateur and a more serious poet." 

Starts as mine. Ends up yours. Not a bad program for a gift.

Gaillard, Frye. Prophet From Plains. Jimmy Carter and His Legacy. University of Georgia Press. 2007.

February 19, 2008

Making Enrichment a Sure Thing

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It's a cliché, now, something we all are aware of: some types of American jobs are moving off-shore in record numbers. What's not a cliché, yet, is what to do about it. So let's say, just for arguement, that you had some planning to do for yourself, or, better, a young adult. What would we suggest to make your - or their - enrichment (both emotional and material) more of a sure thing?

Pink lays out a six keys to meeting the demands of the new era:

DESIGN     We used to say "form over function". Pink says, "Not just function but also design (Pink, 65)". He might have said, "The iPod succeeded for a reason."

So what's that got to do with our young person planning her future? Kindergartners know they artists. Just ask them. Second graders still like art. By sixth grade, only a few kids will admit to liking art - now they focus on learning math and language arts. The art of it all is still important. Focusing on art - and design - opens opportunities for growth in the future in occupations that will stay close to home.

STORY     We used to say, before you tried to sell anything, make sure you know all the features and benefits of the product or service you are trying to sell. Pink says, more than the features and benefits, know the story about your product - and tell it.

"So what's my product?", your young person says? "You are," is the answer. Tell your story. Enlighten it with your strengths and interests and focus it on where you want to end up.

SYMPHONY     We used to make sure our mission statements were focused on one marketplace, or even a niche within a marketplace. Pink says, forget focus, look at the big picture. Re-construct it if you have to, but remember that when you are all done, your re-constructed market niches (made up of bits and pieces from all sorts of marketplaces) need to work together, to play together, like a symphony combines bits and pieces into an "arresting new whole" (Pink, 66). Our young person will combine her interests, both right brain and left brain into new creative occupations that won't ever off-shore.

EMPATHY     I thought I knew all about Jerry Ford's Presidency until I read DeFrank's new book (http://mixnerstrategy.com/blog/2008/02/gerald_fords_scoop.html). Jerry Ford did simple things that meant a lot to Americans. When you visited his office, he got up and met you at the door. Seems simple, doesn't it? A couple steps. A little time wasted. But DeFrank got the empathy of it all in that Ford was saying something like, "We're equals. Let's do something good for America." DeFrank got the empathy of Gerald R. Ford, and re-kindled in me an understanding of what leadership really is. Our young person will need to work in a team. The best way to participate in a team - better yet, to lead a team - to show empathy to all the members of your team.

LAUGH     My daughter and I used to practice laughing at the dinner table. She thought I was nuts. So did my wife. Pink says laughing is a big part health and professional growth. He says the best CEOs make people laugh more that CEOs who just manage. I'm going to try it more. If you see me laughing in a meeting - and trying to make you laugh -  you'll know why. And our young person, what should she do? Don't forget to laugh - and motivate others to laugh as well - as you work your way up the ladder. When you get closer to the top, laughter will serve you just as well as it did on the way up, maybe better.

MEANING     My good friend David Gentry used to talk about the continuum from success to significance. Pink's word for significance is meaning. Without having something important to work for, just why are we doing what we are doing in the first place? We all get a choice in what we decide to do. A job with meaning is likely to be a part of the fabric of the community and less likely to be moved elsewhere. High touch jobs like nursing, art (in marketing, for instance), and design aren't going anywhere. Treated properly, they're highly meaningful, as well.

So, what are the possibilities? Think creative, not analytical. Think people, not immediate solutions. Spend more time on things you wouldn't normally consider. Don't become a cliché. And don't let the young people in your life become clichés as well.

Pink, Daniel H. A Whole New Mind. Moving from the Information Age to the Conceptual Age. Riverhead Books. 2005.

The Gerald Ford Scoop

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The big revelation in DeFrank's book was that Gerald R. Ford had a pretty good idea he would succeed Richard Nixon as President pretty early in his term as Vice President.

The real revelation that we already knew? Jerry Ford was a kind-hearted, absolutely dedicated American who luckily was in the right place to receive the Vice Presidency at a time when we needed him most.

While I had forgotten it, his memoir's title sums it all up: A Time to Heal. 

DeFrank, Thomas M. Write It When I'm Gone. Remarkable Off-The-Record Conversations With Gerald R. Ford. G. P. Putnam's Sons. 2007.

Sony Lost Betamax Battle, Won Blu-ray

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Once again, some early adopters lost. Toshiba abandoned the high density DVD market to Sony's Blu-ray (McBride). We all knew the battle had to end with a clear winner, but didn't know when it would happen. The tipping point in the battle? The day in January that Time Warner's Warner Brothers announced that they were only going to support the Blu-ray format starting in May 2008.

There is a big strategic story here somewhere. It would be nice to say that what normally happens (a big manufacturer is eclipsed by a neophyte new invention-type manufacturer) happened again in this case. Maybe it did, if we are allowed to stretch things a bit. Sony lost on Betamax back in the eighties. It has been, basically, an also-ran, in the MP3 battle it lost to Apple's iPod. It's technology side hasn't had a big winner in a while. Maybe the scrappiness that comes from not winning was enough to propel Sony to the top.

I'm going to wait a while to see what really happened. Warner tipped things. I am interested in knowing why, specifically. I want to know if it was a technology decision, a marketing decision, or a just plain finance decision. We'll see. 

McBride, Sarah and Yukari Iwatani Kane. As Toshiba Surrenders, What's Next for DVDs?. Wall Street Journal. 19 February 2008. B1.

February 15, 2008

An Empty Lake Meade

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There is a truly startling possibility that Lake Meade will empty within the next thirteen years given current population growth and snow levels in the Rockies.

Now is the time for planning, for our businesses, strategically, and our regions.

Barringer, Felicity. Lake Mead Could Be Within a Few Years of Going Dry, Study Finds. New York Times. 13 February 2008. http://www.nytimes.com/2008/02/13/us/13mead.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1202922487-xAs3kSgt1/xlPpcIqdbjRw

February 14, 2008

Samuel Smiles and Sakichi Toyoda

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Self help books are a genre I thought were created in the 1970s or so. I couldn't have been more wrong.

An earlier self help book title, remarkably enough, Self Help by Samuel Smiles, debuted in 1859 as a Victorian best-seller. [1859 is interesting in that it is also the year Charles Darwin's Origin of the Species and John Stuart Mill's Essay on Liberty.]

I mention Self Help because it ends up being a reference book used by Sakichi Toyoda, the inventor who worked on devising a mechanized loom, created a company to manufacture it, and finally, directed his son Kiichiro Toyoda to begin research on the development of a fully Japanese-manufactured automobile (Togo, 36). Preaching Puritan values like the building of character through self-denial (Togo, 13) and strengthened by Toyoda's understanding of Japanese samurai codes, the book was read by thousands of Japanese during the period of the Meiji government after Perry opened Japan to Western trade in 1853.

Togo, Yukiyasu and William Wartman. Against All Odds. The Story of the Toyota Motor Corporation and the Family That Created It. St. Martin's Press. 1993.

Other References

Smiles, Samuel. Thomas Parke Hughes, editor. Selections From Lives of The Engineers with An Account of Their Principal Works. The M.I.T. Press. 1966.

February 13, 2008

Strategy: Old Way or New Way? Or Blend?

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Ask a young person what he or she wants to accomplish and they're likely to respond with what they want to have later on. The strategic thinker, however, will answer more about what they hope to be (Montgomery, 56). Relying on thought processes without a lot of analysis, this was a good example of what strategy was like before, say, twenty-five years ago.

Then came Michael Porter and his supporters will highly analytical processes focusing on competitor analysis and competitive advantage.

Either of the processes might take you where you want to go. My suggestion? Do both. Start with the classic SWOT (strengths, weaknesses, opportunities and threats), derive a Mission Statement, some objectives and pretty broad strategies. Follow-up with more concise analysis of competitors and the marketplace.

Then - and this is as important as anything else - implement your plan, revisit it frequently to measure progress, and, finally, make changes when they make sense.

Montgomery, Cynthia A. A CEO must be the steward of a living strategy that defines what the firm is and what it will become. Putting Leadership Back Into Strategy. Harvard Business Review. January 2008. 54.

Porter, Michael E. The Five Competitive Forces That Shape Strategy. Harvard Business Review. January 2008. 79.

Peter Jennings' Legacy

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Paul Friedman on Peter Jennings:

"The important legacy, as far as I am concerned, is that he achieved this body of work with class, with dignity, with fairness. He never pandered. He never pulled any tricks or stunts the way you see other people doing. He never intentionally made himself more important that the story.... He always considered the story the most important thing-getting the story and describing it skillfully (Darnton, 292)." 

Darnton, Kate, Kayce Freed Jennings & Lynn Sherr. Peter Jennings. A Reporter's Life. PublicAffairs. 2007.

Nike's Very Own James Dean - and the Source of Its Soul

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Phil Knight, co-founder of Nike, on Steve Prefontaine:

"To many he was the greatest U.S. middle-distance runner ever, but to me he was more than that. Pre was a rebel from a working-class background, a guy full of cockiness and pride and guts. Pre's spirit is the cornerstone of this company's soul (Katz, 64)."

Katz, Donald. Just Do It. The Nike Spirit in the Corporate World. Random House. 1994.

February 09, 2008

Sustainable Innovation II

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Light bulbs make an interesting case study on innovation. Incandescents are about to be replaced in the marketplace by florescents. Walmart is in the game as are the big manufacturers like GE.

So why is GE introducing a new, high efficiency incandescent light bulb (Aston)? Let's just blame in on "transitionary periods" (Aston) between the adoption of a new technology and the full demise of an old one. GE is able to incorporate some portions of the new technology into its old light bulb and keep the ancient production lines humming for a while longer. It makes sense - up to a point. The instant GE thinks they are winning the battle against the new technologies is the same instant that they may lose the war. Usually completely new technologies are introduced by a new company while the traditional manufacturers continue to innovate a little bit at a time - "sustainably" (Mixner) - while "new idea" manufacturers leapfrog their processes with new innovations that have a very good chance of stealing the whole market.

My suspicion is that the bulb wars aren't over yet and that a new player, say P&G, will enter the fray. They'll figure out how to market the new technology and to profitably manufacture it in a way that GE never considered. GE thinks incremental technological changes lead. Maybe marketing prowess combined with new marketing leads, actually.

We'll get to watch and see. Our family switched all our bulbs to florescents and, wouldn't you know, our entire electric bill is down by twenty per cent. In this instance, we're early adopters. As florescents move farther into general use, it will be interesting to see who sells the most of the new bulbs. GE has a chance, but so do other companies.

Aston, Adam. Last-Gasp Goods. BusinessWeek. 18 February 2008. 15.

Mixner, Jack. Winning at Innovation.  http://mixnerstrategy.com/blog/2007/11/winning_at_innovation.html