JACK MIXNER STRATEGY

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Interesting factoids thanks to the Otis College report on the Creative Economy (Otis):

• Employment in direct jobs the creative industry is 342,300 with 858,500 total jobs in LA County; 44,500 direct creative jobs in OC with total creative jobs in OC at 92,500 (Otis, 7)
• Employment in creative jobs is "sideways" since 2003 (Otis, 10).
• Sub-industries (my word) include fashion, toys, digital media, product and industrial design, architecture and interior design, communication arts, art galleries, fine and performing arts, furniture and home furnishings, entertainment (Otis, 15-24).
• Overall trends in creative economy employment are minus 2.3% through 2013 (Otis, 24).
• LA County has eighteen universities, colleges, trade and technical schools with degree programs in creative programs; Orange County has three (Otis, 30).

Florida (reference in Mixner) posits that the core - the measure - of an economy is its level of creativity. The implication is that the emphasis of workforce preparedness should include not only science, technology, engineering and math, but also creativity. If in fact creativity numbers are in decline in the LA region, we've got something more to consider in workforce planning.

Mixner, Jack Watching Your Best People Leave Town. 12 December 2009.  http://mixnerstrategy.com/blog/2009/12/watching_your_best_people_leav.html

Otis College of Art and Design with Los Angeles Economic Development Corporation, Economic Information & Research Department. Report on The Creative Economy of the Los Angeles Region. November 2009. http://www.otis.edu/about/creative_economy_report_2008.html

Posted by jackmixner at 11:21 AM | Permalink

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Interesting factoids about the growth of the Green economy in California, thanks to Next 10:

• There are 18 million jobs in California. 159 thousand are in green technologies, 52 thousand in biotech, 228 thousand in software (Next 10, 2).
• The GDP of California is $1.8 trillion with a 2.8% growth rate.
• The population of California is 38 million, with a 1.5% growth rate.
• There is a green value chain, from R&D, through manufacturers, suppliers and service providers. The bulk of the employment is in service providers (Next 10, 15) .
• Orange County employment in green jobs has grown fifty percent since 1995; the highest growth rate is eighty-seven percent in Sacramento (next 10, 21).
• Energy generation jobs in OC have grown 176%; highest is 200% in Central Coast region (Next 10, 23).
• Energy efficiency jobs have grown seventy eight percent in OC; highest is 194% in Sierra region.
• Green transportation jobs have grown 1,875% in OC; highest growth is 2,655% in San Diego region (Next 10, 27).

These are basically percentage reports. Employment is up. This clearly is a industry. Growth at 2.4% trails the general economy, interestingly. Investments could be considered in sectors with faster growth rates, like transportation (although you'd want to examine the real growth rates, as well).

Next 10 with Collaborative Economics. Many Shades of Green. Diversity and Distribution of California's Green Jobs. Next 10. 2009. http://www.next10.org/next10/publications/green_jobs.html

Posted by jackmixner at 10:50 AM | Permalink

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Want to be happier? Focus on significant actions says Goldsmith (92). Want happier employees? Forget about admonishing them to work harder. And stop with the trivial morale boosters. They don't make anyone happier. The personal keys: reduce TV; reduce web surfing; do fewer chores; exercise; spend time with people you love; challenge yourself. Focus on meaning at home and at work, not happiness; end up with more happiness. Try to figure out activities for yourself that, while they are fun to do, add meaning to your life.

Goldsmith, Marshall and Kelly Goldsmith. How Happiness Happens. Bloomberg Businessweek. 21 December 2009. 92. http://www.businessweek.com/magazine/content/09_51/b4160092992355.htm

Posted by jackmixner at 04:25 PM | Permalink

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Table of Contents: The Innovator's Guide to Growth.

Forward - Clayton M. Christensen

1. Precursors to Innovation - Core business in control, growth game plan, allocated resources

Part One. Identify Opportunities

2. Identifying Non-consumers

3. Identifying Overshot Customers

4. Identifying Jobs to Be Done

Part Two. Formulate and Shape Ideas

5. Developing Disruptive Ideas

6. Assessing a Strategy's Fit with a Pattern

Part Three. Build the Business

7. Mastering Emergent Strategies

8. Assembling and Managing Project Teams

Part Four. Build Capabilities

9. Organizing to Innovate

10. Innovation Metrics

11. Conclusion

Anthony, Scott D., Mark W. Johnson, Joseph V. Sinfield, Elizabeth J. Altman. The Innovator's Guide to Growth. Putting Disruptive Innovation to Work. Harvard Business Press. 2008.

Posted by jackmixner at 03:42 PM | Permalink

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First, the rise of Europe as a power in the 17th century. Then, the rise of the United States of America in the late 19th century. Now, the rise of all sorts of economies around the world, mainly China and Asia and including India (Florida Flight, 236). Florida thinks things aren't so dire. We have a chance if - if - we have a "multi-polar (Florida Flight, 237)" strategy. "Cultivate new industry sectors, prepare people for the future, and most of all remain an open society (Florida Flight, 237)."

For decades America attracted talent from all over the world. Things have changed. Folks can go a lot of places to educate themselves. China. India. Scandinavia. Canada. Australia. All will compete. Florida say we have a choice. Restore creativity and openness. Succeed.

Florida's next book focuses on where to live if you're going to succeed. He has maps and formulas that say who's on top, and who's on the way down. Well, we already knew that Flint has a problem. If you take the time, however, there is a message. Americans have done it all along: migrate for economic reasons. Our county has immigration and emigration according to economic conditions. Florida (City) calls this a strength and recommends migration at will for economic reasons. His premise is that education and where you went to school aren't as important as where you end up living. He posits that living in the big mega-cities of the future ensures success  because of the vibrancy of the larger community. The World is Flat got it wrong, Florida says. Having an Internet connection isn't enough. You have to end up in a vibrant community. Then he proceeds to map out all the communities and suggest good locations for you according to your psychographics. Luckily, I appear to have ended up in a good place for my psychographics. Of the five people from my Fortune 500 company who migrated to southern California when I did, two, maybe three, have returned. This wasn't right for me. Interesting how it works. Florida recommends a strategy of deciding where you end up, as community dictates economic success. OK, I'll buy that. I also will buy that life is more fun when there is a bit of serendipity involved. Arrive somewhere and look around. Is it a viable community for you, your business, or should you move on? Have a look, especially before you put down roots you can't transplant.

Florida misses a big point. The high schoolers I talk to are considering relocating, all right, but not to NYC or LA. They're considering points all over the world. I can't blame them and, if we plan now, we can keep them here. It'll take a re-focus of American schools on creativity, not just science, technology, engineering and math. An interesting mix, not just a technical one.

Florida, Richard. The Flight of the Creative Class. The New Global Competition for Talent. HarperCollins. 2005.

Florida, Richard. Who's Your City? How the Creative Economy is Making Where to Live the Most Important Decision of Your Life. Basic Books. 2008.

Posted by jackmixner at 04:14 PM | Permalink

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Eight key points for building a Web 2.0 Community (Libert, 127):

• Lead from the rear. Provide direction and then stand back. Let the crowd lead.
• Know when to step in. You'll know when you have to take action. You just have to pay attention.
• Form a club of like-minded people. Start with, for instance, satisfied customers.
• Don't even try to hide. You're going to make errors. Admit them, fix them - and move on.
• It's never going to be perfect. The coders will continue to improve things. Editing may take forever. (Here's a hint: late in the process, take control of the editing. It has to end somewhere).
• Stir things up. A little bit of heat in a discussion makes the out-put stronger. Make sure you have a pretty good idea where folks stand.
• Here's my favorite: Always say "Thank you." Pretty easy. I am amazed about how many people forget this simple step.
• Don't encourage folks to pass through. Figure out how to engage them in what you are doing.

Final comments: if you are going to create a Web 2.0 project, don't let the crowd decide what your mission is. Decide, then invite folks to help out. Otherwise, you'll waste time you can't afford to waste.

Not only is it fashionable right now to build Web 2.0 communities, it just makes sense. Give it a try.

Libert, Barry and Jon Spector. We Are Smarter the Me. How to Unleash the Power of Crowds in Your Business. Wharton School Publishing. 2008.

Posted by jackmixner at 03:58 PM | Permalink

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My friend Peter Agarwal and I were discussing a new word (for me) that came from India: jugaad. Together we figured out that it meant "workaround." You've got a problem but no support whether from personnel or capital, what do you do? Work around the problem. You've acting in a jugaad manner. It ends up that there's a book being written about jugaad. Newest fad? Yes. Useful? Maybe it is intuitive and we all are doing it. Might be useful to think about and see if your team needs a five minute story about it.

Peter sent me this definition from Wikipedia:

Jugaad (Hindi: जुगाड़ Punjabi(gharuka)) are locally made motor vehicles that are used mostly in small villages as a means of low cost transportation in India. Jugaad literally means an arrangement or a work around, which have to be used because of lack of resources. This is a Hindi term also widely used by people speaking other Indian languages, and people of Indian origin around the world. The same term is still used for a type of vehicle, found in rural India. This vehicle is made by carpenters, by fitting a diesel engine on a cart.

"Jugaad" is also colloquial Hindi word that can mean an innovative fix,often pejoratively used for solutions that bend rules, or a resource that can be used as such or a person who can solve a vexatious issue. It is used as much for enterprising street mechanics as for political fixers. In essence, though it is a tribute to native genius, and lateral thinking.

Even though in everyday life, a Jugaad can be a solution, in context of Management, Jugaad is essentially a person who has some special capability or access to a resource or even access to another Jugaad that can be useful under extreme or special circumstances. A Jugaadu person is one who has numerous useful and cashable Jugaads. 

Jugaad is also mentioned by Jana. Need to learn how to develop products more cheaply? Maybe you need to do a little research on jugaad methods.

Posted by jackmixner at 01:46 PM | Permalink

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Three factoids about the up-coming battle for executive talent (Fernandez-Araoz, 72):

• Tata Consultancy Services calculates the ROI of each new hire, by university. The best schools' graduating classes get blanket offers from Tata.
• China is working to attract scientists from around the world. Singapore is shifting itself from a host for exec talent to a home. Subtle shift. Big meaning.
• A European-based company just moved its entire management team to Singapore so they could see things "from the other end of the telescope."

In the early eighties Japan was the big nemesis. Today the rest of Asia is filling that role. The battles aren't done yet, but they will effect your hiring process in subtle ways. Now is the time to start planning.

Fernandez-Araoz, Claudio. The Coming Fight for Executive Talent. BusinessWeek. 7 December 2009. 72. http://www.businessweek.com/magazine/content/09_49/b4158080830272.htm

Posted by jackmixner at 01:12 PM | Permalink

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You have one meeting with the top brass in your biggest sales target. How do you prepare (Lay, 6)?

• Lodge a provocation. Come prepared with information that will unsettle the potential client. "If you don't do this, now, this will happen."
• Capture their reaction. No reaction? Leave. Concern? Push your case harder.
• Give war stories. Tell them what happened with another client when they did it your way.
• The close? A diagnostic. Charge for the diagnostic. If you do this right, expect them to find budget, even when there is no budget.

Who do you take to the meeting? This is not consultative selling. In consultative selling, you save your best sales people for late in the dialog. Regular folks found out what is going on. The sophisticated closers come in late, to close. Not any more. Take the best people early on. Arm them with the best information you've got, including war stories. Make the close earlier, even when you are not sure there is budget to do what you want to do.

Provocation is compelling, with new information (Lay, 5). You know they have angst. Address it. State your case and prove it with hard facts. Keep it executive level. Dealing with a manager? Go higher. Provoke. Lead. Force issues out.

Lay, Phillip, Todd Hewlin, and Geoffrey Moore. In a Downturn, Provoke Your Customers. The companies you serve are slashing their budgets-but you can still make the sale. Harvard Business Review. 2009.

Posted by jackmixner at 02:35 PM | Permalink

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More than a year ago, we extolled the virtues of the Pure Digital Flip video camera (Mixner). Since then, the camera has sold millions of units in a down economy. The company has since sold to Cisco for $560 million. The Flip is still riding high. Sales still continue to be "off the charts," competitors are taking notice (and failing in their efforts), and the company is carefully adding features as costs come down (there is now a high definition version of the Flip for basically the same cost).

Capps calls products like the Flip "good enough" products (Capps, 118) because they give eighty percent of the functionality for twenty percent of the price, or, more succinctly, "twenty percent of the effort, features, or investment delivers eighty percent of the value to consumers" (Capps, 118). He lists a whole series of similar products and services (Capps, 113-118):

• AutoCAD has a simple, cheap competitor called SketchUp that costs $500 versus AutoCAD's $4,000.
• 90% of Google's ad revenue comes from text ads: no pictures, no celebrities.
• Netbooks have minimal storage, minimal processing power, no graphics capability and they are cheap, small and light. Shipments are up seven-fold in 2009.
• Kindle isn't high resolution or complex graphics driven. It is slim and has hundreds of book titles. Oh, and $310 million in sales its first year out.
• Net calls aren't so hot. They are cheap, however. Skype sales are up forty-two percent year-to-year.
• Conlin talks about the new simple in healthcare: Doctors who make house calls. A trip to the emergency room costs $1,500 on average; a home visit costs $150 (Conlin, 071). In this case the quality and the price is there. Not bad.
• Wildstrom talks about Microsoft's new free virus scrubber. They tried to sell it and failed, so they are giving it away. It is apparently as good as Symantec's offering, but simpler and not as "invasive" on a computer.
• Markoff talks about I.B.M.'s entry into the genome business with a targeted $1,000 report. Cheap, simple genomes will revolutionize medical diagnosis and treatment. Let's watch and see if I.B.M. is actually able to pull this off. Their personal computer decades ago was successful because they assigned the project to a remote team and left them alone. Let's hope they decide to do that again.

I am interested in one flaw in the discussion. I said it a year ago, and it still appears to be true: only small companies can create disruptive strategies that work. It's true until you begin to examine things a little bit closer (beyond the Microsoft and I.B.M. examples above). Two big-company examples:

• Kaiser Permanente has a new clinic in Hawaii staffed by two physicians who are able to do eighty percent of what any walk-in customer/patient might need. What they can't do, they refer across town to the Kaiser hospital with full services. No one needs to cart around x-rays or patient records: they're digital and accessible everywhere in the system (Capps, 118).
• It used to be that attack fighters were fast, heavily armed and devastating to the enemy. The only problem is they can't stay over a battle field for hours. Predator drones are the opposite (Capps, 117). They're light and minimally armed. They are also able to stay put to watch 24/7 (via video) what is going on over the hill or over the mountain range. They either fire their simple weaponry or call in the troops or the fighters.

Both the clinic and the drone were created by big companies (Kaiser and General Atomics). This deserves more study. Disruptive strategies work for small companies. They also work for big companies.

Capps, Robert. Why Lo-Fi High Tech Will Rule the World. Wired. November 2009. 111-118.

Conlin, Michelle. The Return of the House Call. BusinessWeek. 16 November 2009. 70. http://www.businessweek.com/magazine/content/09_46/b4155070821061.htm

Markoff, John. I.B.M. Joins Pursuit of $1,000 Personal Genome. New York Times. 5 October 2009. http://www.businessweek.com/magazine/content/09_46/b4155070821061.htm

Mixner, Jack. Disruptive Technology: Smaller Companies Have the Edge. http://mixnerstrategy.com/blog/2008/09/disruptive_technology_smaller.html

Wildstron, Stephen H. Microsoft Steps Up Its War on Hackers. BusinessWeek. 21 September 2009. 76. http://www.businessweek.com/magazine/content/09_38/b4147076993366.htm

Posted by jackmixner at 03:33 PM | Permalink