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      <title>JACK MIXNER STRATEGY</title>
      <link>http://mixnerstrategy.com/blog/</link>
      <description>1+714.673.8578     JackMixner@MixnerStrategy.com</description>
      <language>en</language>
      <copyright>Copyright 2010</copyright>
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         <title>On Character</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Live dangerously. Tell the truth. Noonan talks about Reagan (Noonan, 212):</p><blockquote><p><em>...Reagan thought honest words the only possible predicate for progress. ...He..remained consistent. The immature are always finding new truths, and the cynical are always discovering new philosophies to claim to believe in, but Reagan was neither immature nor cynical. And so was his consistency, which would have been impressive in anybody, but which was startling in a politician.</em></p></blockquote><p>Let's parse out the important word, consistent. After his early union days in Hollywood, Reagan realized that his future evil empire was real. He stayed on message through&nbsp;those years and continued to stay on message through this GE speech-making days, his governorship, and his presidency. He stayed on message throughout. Now, as he became president, the Russians were looking for signs of how Reagan would act. Noonan thinks it was the air traffic controllers union strike that really started to turn the tide (Noonan, 222). The union threatened to close down American air space. Reagan said come to work or you are fired. They didn't come to work (at least most of them). They lost their jobs in short order. </p><p>I suspect that the Russians were expecting a blink, that Reagan would back down. Reagan saw the truth. The controllers wanted a huge salary increase. It wasn't right. He did the right thing. And the Russians watched.</p><p>This says quite a lot about being a leader. If you think little things - or big things, for that matter - are not important, you might want to reconsider. People are watching. The Russians watched Reagan and realized he was likely to do just what he said. Your team is watching you and making decisions as well. Make sure you are showing your true character at all times. And make sure your true character is the character of the right.</p><p>Reference</p><p>Noonan, Peggy. <em>When Character Was King. A Story of Ronald Reagan. </em>Viking. 2001.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/on_character.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/on_character.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Fri, 30 Jul 2010 13:01:34 -0800</pubDate>
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         <title>The Positioning Process: The Claim</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Here is Moore's formula for creating a positioning statement (Moore, 161):</p><ul><li><em>For </em>(target customer)</li><li><em>Who </em>(statement of the need or opportunity)</li><li><em>The </em>(product name) <em>is a </em>(product category)</li><li><em>That </em>(statement of key benefit-that is, compelling reason to buy).</li><li><em>Unlike </em>(primary competitive alternative)</li><li><em>Our Product </em>(statement of primary differentiation).</li></ul><p>Reference</p><p>Moore, Geoffrey A. <em>Crossing the Chasm. Marketing and Selling High-Tech Products to Mainstream Customers. </em>HarperCollins Publishers. 1991.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/the_positioning_process_the_cl.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/the_positioning_process_the_cl.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Sun, 18 Jul 2010 14:34:40 -0800</pubDate>
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         <title>The Case for Green</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Components: LEED 2009 for New Construction and Major Renovations (110 points total):</p><blockquote><p>Sustainable Sites - 26 points</p><p>Water Efficiency - 10 points</p><p>Energy &amp; Atmosphere - 35 points</p><p>Material &amp; Resources - 14 points</p><p>Indoor Environmental Quality - 15 points</p><p>Bonus Points</p><blockquote><p>Innovation in Design - 6 points</p><p>Regional Priority - 4 points.</p></blockquote></blockquote><p>Sustainability: &quot;...a development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Commission, 1987 in&nbsp;<em>Our Common Future)</em>.&quot; </p><p>Benefits of Green Building (Energy, <em>Professional, </em>16)</p><blockquote><p>Environmental Benefits</p><ul><li>Green Building consume 26% less energy</li><li>Green building have 13% lower maintenance costs</li><li>Green building have 27% higher occumpant satisfaction</li><li>Green building have 33% less greenhouse gas emissions</li></ul><p>Economic Benefits</p><ul><li>Green market grows from $36 billion to $96 billion by 2013</li><li>2% market in 2005; 10% in 2008; 20% 2013</li><li>Price same as not LEED certified</li><li>Sale price of building 10% higher</li></ul><p>Social Benefits</p><ul><li>27% fewer headaches from proper lighting</li><li>Sales in stores with skylights were up to 40% higher than without skylights</li><li>Students with most daylighting progressed 20% than peers on math tests, 26% faster on reading tests.</li></ul></blockquote><p>References</p><p>Energy and Environmental Solutions. <em>LEED Green Associate One Day Training.</em> <a href="http://www.e2-solutionsinc.com/home.php?id=1">http://www.e2-solutionsinc.com/home.php?id=1</a></p><p><em>Energy and Environmental Solutions. LEED Operations and Maintenance.</em> <a href="http://www.e2-solutionsinc.com/home.php?id=1">http://www.e2-solutionsinc.com/home.php?id=1</a></p><p><em>Energy and Environmental Solutions. LEED Accredited Professional Exam Preparation 2 Day Workshop. </em><a href="http://www.e2-solutionsinc.com/home.php?id=1">http://www.e2-solutionsinc.com/home.php?id=1</a></p><p>U. S. Green Building Council. <a href="http://www.usgbc.org/">http://www.usgbc.org/</a></p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/the_case_for_green.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/the_case_for_green.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Sun, 18 Jul 2010 13:51:59 -0800</pubDate>
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         <title>Picking A Team</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>My old friend Don Phillips once asked me which player on a Pop Warner football team is the most important. My response, was, of course, &quot;Oh, it's the quarterback.&quot; Whoops. Don very quickly asked me why. Well, the QB drives everything that happens on the field. In the pros, obviously, the QB is the highest paid player on the team. But, remember, we're talking about Pop Warner, not the pros. There's a difference.</p><p>In Pop Warner football, if the QB doesn't end up with the football in his hands, nothing happens. Kids aren't necessaryily dexterous, so there is actually a very good possibility that, if you don't have a very good Center, your team is never going to go anywhere. One of your best players might end up being the QB, OK. But another good player had better end up playing Center. If you as a coach want to spend time with individual players&nbsp;on the field, the Center is a very good place to start. That even goes before practice to actual team selection. If you can, make sure you have a good Center.</p><p>Jim Collins actually has a whole chapter on the people topic entitled &quot;First Who ... Then What&quot; (Collins, 41). He has some tough advice, especially in these times. He points to the ascention of Wells Fargo from regional has-been to national power house. From 1983 til about 1998, the bank out-performed other banks. The effort to grow healthier and then larger actually started back in the early seventies when the CEO Dick Cooley started to very carefully put together a team (Collins, 42). It took him more than a decade to put his team together. Their efforts, working together, sparked the ultimate growth. Collins' criteria for selecting folks are interesting (Collins, 52): Ruthless could be nice for some companies. Rigorous is better. Not sure? Keep looking. Not happy with a current team member? Make a change (Collins, 56). Put your best people on the largest opportunities, not your problem children (Collins, 58). </p><p>OK, you say. What's the next step? Start thinking about what goes into&nbsp;your plan. </p><p>References</p><p>Collins, Jim. <em>Good to Great. Why Some Companies Make the Leap ... and Others Don't. </em>Harper Business. 2001.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/picking_a_team.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/picking_a_team.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Thu, 15 Jul 2010 10:47:18 -0800</pubDate>
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         <title>Fire! Ready! Aim!</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>In preparing for a series of presentations&nbsp;to&nbsp;small groups of CEOs, I realized that, strategically, I had a problem. Each of the groups is composed of CEOs&nbsp;with whom I want to discuss strategy while at the same time sending them home with some action items for the day after our discussion. That seems doable until you consider that many, many CEOs are entirely booked for the next three or four weeks, let alone tomorrow. Giving them homework to do might be a stretch. What to do? </p><p>Since I can't really expect a CEO to drop what she is doing to quickly implement homework from a speech, I needed a work around. So let's go with what we've got. One simple question comes to mind, &quot;What are you doing tomorrow?&quot; Let have a look. My bet is that, if we follow the Pareto Principal, we'll find that eighty per cent of that CEO's productivity comes from twenty per cent of her activities. There may be a strategic implication that is useful: there may be some things you don't have to do tomorrow. If you didn't do them, would you have more time to do something else, maybe even something strategic?</p><p>The &quot;Fire! Ready! Aim!&quot; mantra comes to mind. This next day action plan is really a &quot;Fire!&quot; plan. You already know what you are going to have to do, so you have to go ahead and do it. My only request? Carve out some time to do something strategic in your busy day. How? Don't do something - one of those eighty per centers, maybe - so you are able to give some thought to how to proceed strategically. </p><p>Let's have another look at the three words in the mantra. Next comes &quot;Ready!&quot; and &quot;Aim!&quot; If you give yourself some time, getting ready for planning is a very good thing to do. If you've never done planning, what comes first? Pick a team to work with you. Meet with them. Decide together what to do next. Just make sure the dialog is strategic, not just an eighty per cent activity.</p><p>&nbsp;</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/fire_ready_aim.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/fire_ready_aim.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Thu, 15 Jul 2010 09:56:58 -0800</pubDate>
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         <title>The Five Most Important Questions</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Let's get right to it. What are Drucker's five important questions (Drucker, ix)? </p><ol><li>What is&nbsp;our mission?</li><li>Who is our customer?</li><li>What does the customer value?</li><li>What are our&nbsp;results?</li><li>What is our plan?</li></ol><p>Now, we all like Drucker's work. How could we not? The latest edition of his Five Questions text is just icing on the cake. &nbsp;Complexifying his five simple questions might not be a good idea. Let's just suppose, however, that we decided to break the rules. What would we add? </p><p>Two&nbsp;additions come to immediate mind. The customer question, basically, &quot;What do our customers think?&quot; could have two additional key points, namely, </p><ul><li>&quot;What do the folks who work here think?&quot; and </li><li>&quot;What do our stakeholders think (after Palermo, <em>Do the Right Things...</em>, 1-6)?&quot; </li></ul><p>These&nbsp;questions really read closer to, </p><ul><li>&quot;Would you recommend this company to your friend as a place to work?&quot; and </li><li>&quot;Would you recommend this company to you friend or business associate as a good place to buy goods or services?&quot; Finally, stakeholders are asked something like, </li><li>&quot;Would you recommend our company as an investment (after Palermo, 1-6)?&quot;</li></ul><p>Now, as we know, Drucker kept things simple. However, considering things a little bit more closely makes some sense.</p><p>Reference</p><p>Drucker, Peter F. with Jim Collins, Philip Kotler, James Kouzes, Judith Rodin, V. Kasturi Rangan, and Frances Hesselbein. <em>The Five Most Important Questions You Will Ever Ask Your Organization. </em>Jossey-Bass. 2008.</p><p>Palermo, Richard C., Sr. <em>Do the Right Things...Right. It Is That Simple. A Step-by-Step Guide to World-Class Performance.</em> The Strategic Triangle, Inc. 2003.</p><p>Palermo, Richard C., Sr. <em>Leadership...A Return to Common Sense. A Leader's Common Sense Playbook for Uncovering the Right Things...and then Doing Them Right! </em>The Strategic Triangle, Inc. 2006.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/the_five_most_important_questi.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/the_five_most_important_questi.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Tue, 13 Jul 2010 13:49:58 -0800</pubDate>
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         <title>You Want Change. You Also Want Results</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Consultative selling is a very useful sales process. You spend quite a bit of time figuring out just what a customer wants&nbsp;before you do anything. Then you work with the customer to make sure that you&nbsp;are both on the same page. Then - and only then - do you&nbsp;propose on the customer's needs. It&nbsp;is a very useful method &nbsp;based largely&nbsp;on <em>The One Minute Sales Person </em>(Johnson).</p><p>Palermo uses a similar methodology for change management. He says look first at the current state of the organization and then look at the new, desired state (Palermo, <em>Leadership</em>, 38) and identifies six generic stumbling blocks to actually making the changes you desire:</p><ol><li><em>Reward and Recognition</em></li><li><em>Key Measures</em></li><li><em>Strategies and Action Plans</em></li><li><em>Focused Training</em></li><li><em>Role Model Senior Leader Behavior</em></li><li><em>Focused Communications.</em></li></ol><p>The title of this posting could also be, &quot;You Want Change. You Also Want Results. Now.&quot; If it were only so easy. Have a look at the list. Fail at any one of the six items and your initiative is likely to fail.&nbsp;A crucial suggestion: admit defeat early. Plan for success. Measure yourself as you go into the change initiative to make sure you are ready for all six steps. If you are not ready, rectify the weaknesses early in the process (Palermo, 10-4). Don't wait around. Your action plans will include measureable objectives. That makes sense. Your team, especially the ones that didn't actually participate in the design of your change plan, won't really understand what is going on. Paint them a picture (Bridges, 55). Visual aides work, of all sorts. Meeting and discussing with all the different constituents of the change process also makes sense. Face-to-face. That takes time, yes. It also ensures that your change process has a better chance of success.</p><p>References</p><p>Bridges, William. <em>Managing Transitions. Making the Most of Change. </em>Addison Wesley. 1991. </p><p>Johnson, Spencer, M.D. and Larry Wilson. <em>The One Minute Sales Person. </em>Avon Books. 1984.&nbsp;</p><p>Palermo, Richard C., Sr. <em>Do the Right Things...Right. It Is That Simple. A Step-by-Step Guide to World-Class Performance.</em> The Strategic Triangle, Inc. 2003.</p><p>Palermo, Richard C., Sr. <em>Leadership...A Return to Common Sense. A Leader's Common Sense Playbook for Uncovering the Right Things...and then Doing Them Right! </em>The Strategic Triangle, Inc. 2006.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/you_want_to_do_the_right_thing.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/you_want_to_do_the_right_thing.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Mon, 12 Jul 2010 10:11:04 -0800</pubDate>
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         <title>Results From Planning</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Planning with the &quot;end in mind&quot; will make for a better plan that actually is implemented. We all are used to the classic SWOT analysis where you consider your company's internal strengths and weaknesses and your external threats and opportunities. We all tend to focus on weaknesses because, let's admit it, they're easy to come up with. Threats are pretty obvious, but many times they come from sources we can do nothing about. Strengths - and let's hope there are lots of them - help you decide what to focus on. If you don't have a strength to support a strategy, maybe it was a very good strategy for some other company.</p><p>Some&nbsp;thoughts come to mind: A&nbsp;simple SWOT analysis on a flipchart with a few people gathered around may not be enough. Spending just a couple hours or days a year considering your strategy may be woefully inadequate. Polling the room for opportunities is nice. You may in fact come up with a few good ideas. However, unless those opportunities are tied&nbsp;to actual execution you are wasting your time (Barrow). Everyone is busy. Unless you really commit resources to executing the plan, nothing is likely to happen. Folks, after all, are already busy doing what they are already doing. How can you expect them to do more? Those woefully short days of planning are flawed because they don't include any plan for monitoring performance. Just having the plan is not enough. Implementing is nice, but it can't be implementing in a vacuum. You've got to tie your planning to periodic, repetitve re-visiting of your strategies and the action plans you have put together to carry them out. Those re-visits have to take place with everyone regathered in the room to talk about progress, what changes to make, and what strategies or portions of action plans to drop. </p><p>Other ways to consider strategy (Center):</p><ul><li>Spending some time considering how other folks in companies in your industry and in companies you admire - bench marking - can be very useful.</li><li>Considering you company not as an individual entity, but as part of a business ecosytem makes for more comprehensive strategy. Consider customers, yes, but don't forget suppliers, logistics, human resources, information technology, customer service, along with manufacturing and service delivery.</li><li>The more people you have involved in the process, the better. The receptionist knows more that you might think. So do the folks on the loading dock.</li><li>Simple, actionable, dated goals are easier to refer back to. People will forget the particulars, however, unless you make the objectives more relevant to the individuals involved. Tell a story about how your objectives work at your company. Include more narrative or, literally, stand in front of a small group and tell a story and ask for their feedback on implementing the plan based upon the story's description.</li><li>Keep a score card of performance on objectives may be useful. Posting it on the wall works. So does posting it on the wall with a neon sign. They've done it with safety results at steel mills for years (remember the signs &quot;462 days without an injury&quot;?). How can you do it with marketing results, or HR results for that matter, in a similar fashion?</li><li>Mission statements, done properly, will focus your company on providing products or services that match the company's core competencies. Straying from your core competencies may rightfully cause you to re-consider whether such straying really makes sense.</li></ul><p>References</p><p>Barrows, Ed. <em>Four Fatal Flaws of Strategic Planning. </em>Harvard Business Reveiw. 13 Mar 2009. <a href="http://blogs.hbr.org/hmu/2009/03/four-fatal-flaws-of-strategic.html">http://blogs.hbr.org/hmu/2009/03/four-fatal-flaws-of-strategic.html</a></p><p>Center for Applied Research. <em>Briefing Notes: A Summary of Best Practice Approaches in Strategic Planning Processes. </em>2005. &nbsp;<a href="http://www.cfar.com/Documents/BestPract.pdf">http://www.cfar.com/Documents/BestPract.pdf</a></p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/results_from_planning.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/results_from_planning.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Mon, 12 Jul 2010 05:29:37 -0800</pubDate>
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         <title>Animal Spirits</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Akerlof's <em>Animal Spirits </em>Table of Contents (Akerlof, v):</p><blockquote><ul><li><em>Preface</em></li><li><em>Acknowledgements</em></li><li><em>Part One: Animal Spirits</em></li><ul><li><em>Confidence and Its Multipliers</em></li><li><em>Fairness</em></li><li><em>Corruption and Bad Faith</em></li><li><em>Money Illusion</em></li><li><em>Stories</em></li></ul><li><em>Part Two: Eight Questions and Their Answers</em></li><ul><li><em>Why Do Economies Fall Into Depression?</em></li><li><em>Why Do Central Bankers&nbsp;Have Power over the Economy (Insofar as They Do?)</em></li><li><em>The Current Financial Crisis: What Is to Be Done?</em></li><li><em>Why Are There People Who Cannot Find a Job?</em></li><li><em>Why Is There a Trade-off between Inflation and Unemployment in the Long Run?</em></li><li><em>Why Is Saving for the Future So Arbitrary?</em></li><li><em>Why Are Financial Prices and Corporate Investments So Volatile?</em></li><li><em>Why Do Real Estate Markets Go through Cycles?</em></li><li><em>Why Is There Special Poverty among Minorities?</em></li></ul><li><em>Conclusion</em></li><li><em>Notes</em></li><li><em>References</em></li><li><em>Index</em></li></ul></blockquote><p>Reference</p><p>Akerlof, Geroge A. and Robert J. Shiller. <em>Animal Spirits. How Human Psychology Drives the Economy, and Why It Matters For Global Capitalism. </em>Princeton University Press. 2009.</p><p>BloombergBusinessweek. <em>The BusinessWeek Best Seller List.</em> 7 July 2010. <a href="http://images.businessweek.com/ss/09/06/0611_bestsellers/10.htm"><em>http://images.businessweek.com/ss/09/06/0611_bestsellers/10.htm</em></a></p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/animal_spirits.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/animal_spirits.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Wed, 07 Jul 2010 10:01:54 -0800</pubDate>
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         <title>Why Aggregate Demand Targets Aren&apos;t Enough This Time</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Traditionally, when the federal government&nbsp;battled a recession it had two main tools at its disposal, namely fiscal policy and monetary policy. You could reduce interest rates (monetary policy) and/or you could expand the money supply (fiscal expansion) (Akerlof, 86). When financial markets work, it is a straightforward task to stimulate aggregate demand using these two basic tools (Akerlof, 89). Unfortunately, because banks suddenly don't trust the system (and who can blame them) stimulating demand using these tools isn't working. Banks aren't making loans to business; they're keeping what funds they have on their balance sheets. </p><p>This time around the economy needs a greater boost than usual. Akerlof proposes a second target beyound aggregate demand, a target &quot;for the amount of credit of different sorts that is to be granted. This target should correspond to the credit that would normally be given if the economy were at full employment. (Akerlof, 80)&quot;</p><p>We all know why. Talk to any CEO and she will tell you that credit of any form is very tough to acquire. In order to book that new sale, a company needs to assure itself that it can actually produce what has been ordered and pay for the labor and materials related to the sale. Customers normally want terms for their sale, meaning, unless the company has funds to produce the order, the order isn't going to be produced unless someone supplies a credit line of some sort. Enter this new stimulus for credit.</p><p>For obvious reasons, banks pulled credit off the table. Interest rate reductions and increases in the money supply weren't enough&nbsp;to jumpstart&nbsp;the financial system, again. Enter federally provided (through non-traditional providers if need be) loans to reduce the credit crunch. Interest rate reductions and fiscal stimuli continue. Credit is added. </p><p>This is new. Some of the SBA lending guarantees currently available or discussed address part of the problem. So do guaranteed micro-loans (or not so micro loans). There may not be enough of them, but they are becoming available. If you need to leverage that new sale, look around for the funds. They are becoming more and more available. </p><p>Reference</p><p>Akerlof, Geroge A. and Robert J. Shiller. <em>Animal Spirits. How Human Psychology Drives the Economy, and Why It Matters For Global Capitalism. </em>Princeton University Press. 2009.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/why_aggregate_demand_targets_a.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/why_aggregate_demand_targets_a.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Wed, 07 Jul 2010 09:54:11 -0800</pubDate>
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         <title>On Human Psychology, and Business Strategy</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>John Maynard Keynes first tackled the concept of &quot;animal spirits&quot; in his description of how psychology effected the markets. </p><p>Keynes Confidence Multiplier - the Keynesian Multiplier - rated the propensity of a consumer to spend, especially her or his propensity to spend part of a stimulus package. You had a choice. Spend your portion of a stimulus package, or save your portion. The more people who decide to immediately spend their portion of a stimulus package, the greater the impact of the stimulus, as that expenditure allowed the person or entity which received your portion to immediately spend, and so on. The higher the propensity to spend funds, the greater the impact.&nbsp;As computers and modelling were growing economic tools during the Depression and the periods following it, there ended up being a multitude of multipliers like the consumption multiplier, the investment multiplier, a government expenditure multiplier, and a confidence multiplier (Akerlof, 16).</p><p>Akerlof expands the discussion of&nbsp;the Confidence Multiplier's effect on economies to include Fairness, Corruption and Bad Faith, the Money Illusion, and, finally, economic Stories that effect results. If you have thought about it much, you probably realize that portions of capitalism are unfair. That realization may require closer examination. Involuntary unemployment has an economic cause (or certainly a psychological one), but that doesn't make it fair. The disenfranchised - the involuntary unemployed - seeth at their status which effects consumption. Inflation has an effect - a fairness effect - on aggregate output, as well (Akerlof, 25).</p><p>Corruption is a little more obvious, as we have a series of scandals to point to, like the Savings and Loan fiasco in the 80s, the Enron fiasco in the 90s and, more recently, the Subprime Mortgage market.&nbsp;These scandals effected not only their immediate environment, but the whole system. Hear enough about what is bad about a system and you may decide that just maybe your stimulus funds are better put into savings than into a newly &quot;corrupt&quot; investment. </p><p>If accounting is the langauge of business, business isn't working very well. Why? Well, after quite a bit of discussion, Akerlof (50) shows that accounting doesn't take into account inflation. Leave out inflation and you don't know what your savings account will really be in five years, your estimate of the current value of a bond will be off, you projection of a stock's price will be erroneous, wage contracts will be spurious, prices will be off (especially those contractually set into the future), and, those wonderful statements your receive about your stock holdings will suddenly be a lot less useful than you had expected.</p><p>Economists are supposed to&nbsp;base their predictions on facts, not stories (Akerlof, 54). There is a flaw here that explains why&nbsp;confidence takes a dive during a recession. All consumers hear&nbsp;is statistics. They don't hear stories about&nbsp;what is really happening, nor what&nbsp;economists think should be done. What economists forget is that facts don't drive markets - stories do. Eighteen banruptcies in your zip code or census tract don't mean much&nbsp;until you see those people thrown out on the street (OK, that doesn't happen much any more, I know). Then, the story of their plight will guide your decision making. You want to help, yes. You also don't want to end up in the same position. That effects your relationship to a stimulus package: you'd better save, the story goes, even when consuming is better for the economy. The stories people tell are more important than the facts. </p><p>So, some recommendations for your stategizing this summer:</p><ul><li>Start with confidence. Maybe there is a reason to build your team up.</li><li>Make sure things are fair. Sometimes, fairness takes some explaining. You want to be fair to your current team <u>and</u> you want to be fair to your new hires. Fairness to each of those populations may read differently.</li><li>Corruption does have an effect. You have to stand back and decide whether the shrinkage you are undergoing is a boost to limited salaries - or theft. Both effect ultimate profitability in very different ways.</li><li>Southwest Airlines made more money through the last years than other airlines because it made fair estimates of the oil price increases and built those future prices into its contracts. When prices spiked, they had fixed price contracts that helped them weather the storm.</li><li>Stories matter. Employees listen to what you say. If you are going to tell a story, consider what the real message is. Make sure it is confidence building. And, remember, a confidence building story is sometimes hard to come by, so don't just wing it. Finally, remember that your team won't remember the statistics - they'll remember the story. Make sure it is a good one.</li></ul><p>Reference</p><p>Akerlof, Geroge A. and Robert J. Shiller. <em>Animal Spirits. How Human Psychology Drives the Economy, and Why It Matters For Global Capitalism. </em>Princeton University Press. 2009.</p><p>Wikipedia. <em>Animal Spirits</em>.&nbsp;<a href="http://en.wikipedia.org/wiki/Animal_spirits_(Keynes">http://en.wikipedia.org/wiki/Animal_spirits_(Keynes</a>)</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/07/on_human_psychology_and_busine.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/07/on_human_psychology_and_busine.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Tue, 06 Jul 2010 15:04:25 -0800</pubDate>
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         <title>Top OC Green Companies</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Here are the top twenty-five green companies in Orange County (OC Metro, 39):&nbsp;</p><ol><li>B. Braun Medical, Inc.</li><li>Towe Jazz Semiconductor</li><li>Sustainability Leadership Program, UCI Extension</li><li>Rent A Box</li><li>Stantec Consulting</li><li>The Costa Mesa Green Home</li><li>Yard House Restaurants</li><li>e-Recycling of Orange County</li><li>McCarthy Building Cos. </li><li>Miocean Fundation</li><li>Nova Vita Salon &amp; Spa</li><li>OCB Reprographics</li><li>NuWa Textiles</li><li>Irvine Rance Water District</li><li>Kaiser Permanente Irvine Medical Center</li><li>Alere</li><li>Toshiba America Business Solutions</li><li>Waste Management of Orange County</li><li>Cox Communications</li><li>City of Irvine</li><li>Green Foam Blanks</li><li>The Irvine Co.</li><li>Poseidon Resources</li><li>UPS</li><li>Sharp Solar Energy Solutions Group and the city of Huntington Beach</li></ol><p>Reference</p><p>Borgatta, Tina. <em>The 2010 Green Team. </em>OC Metro. June 2010. <a href="http://www.ocmetro.com/t-GreenCompanies_MAIN0610.aspx">http://www.ocmetro.com/t-GreenCompanies_MAIN0610.aspx</a></p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/06/top_oc_green_companies.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/06/top_oc_green_companies.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Mon, 28 Jun 2010 18:48:04 -0800</pubDate>
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         <title>Designing Software When You&apos;re Late to Market</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>&quot;We're late on our software design project. What are we going to do?&quot;</p><p>&quot;Just add more people. More people means faster to alpha.&quot;</p><p>Ever had a conversation like that? Just throwing people&nbsp;at a project may not be the best solution says Fred Brooks in a now classic software design book. Brooks came out of IBM in the sixties where he managed the creation of big,&nbsp;main-frame software that took lots of time to create. Having seen it all, Brooks takes the time to share with us just what can go wrong on large software project - and how to avoid all the mistakes he watched happen over time. He has one basic premise. Actually, a bunch of them, but they all come back to the&nbsp;man-month. </p><p>Let's say management wants a computer program designed and implemented. They'll say, &quot;Let's have it done by such-and-such date.&quot; Your job is to get the project done and the software implemented. Now, your company is like most others. It has a&nbsp;budget. So, wearing your best manager's hat you estimate how many&nbsp;hours you think the project will take. You do it pretty&nbsp;quickly, hand it in to the boss who&nbsp;approves it quickly, because, as we all know, the boss wants it done fast. </p><p>Brooks makes two points about the process&nbsp;just&nbsp;described: your estimate is always wrong because - are you listening? - you didn't plan enough for the ultimate implementation of the software (Brooks, 20). Interestingly, he says spend a third of your&nbsp;time planning&nbsp;before you even begin coding. Then, get the coding in a sixth of the time you have allocated to the project. &quot;What?&quot; you say. All the time should be spent on coding. Not if you want your software to work properly. You've planned it (and took a lot longer than you expected), you've coded it, and now, you want to implement it. You've forgotten half of the work, the early systems test (with the component test)&nbsp;and the late systems test with all the different modules in hand (Brooks, 20). They get half the work. </p><p>&quot;OK&quot;, you're saying, &quot;times have changed. We're making a different type of software than IBM made in the sixties.&quot; I agree with that. You've migrated to a different platform using all sorts of new bells and whistles, modifications and changes. I agree. My suspicion, however, is that Brooks has it right. Spend a third of your time planning, a sixth coding, and then, half of your time checking your work. That's Brook's first lessen.</p><p>The second one gets more&nbsp;interesting. When was the last time you delivered software on time? Never, right? Brooks has a formula for making up lost time. It's simple. Use the same number of - indeed, the same -&nbsp;coders. Extend the time. You can't do it right? It'll take too long. Well, adding more people won't save time. All you'll end up doing is messing up your time-line bringing people up to speed. The trainers are pulled from coding. The new coders never catch up (Brooks, 26). The only solution? I already told you: keep the same number of coders. Extend the time. Simple to do. Hard to sell to management.</p><p>What if you run a design firm? You have a job to do. Your firm's profitability depends on it. Estimate your project properly. Leave time for planning. Then, leave more time than you ever expected to test the result of your efforts before the code ever gets to a customer. </p><p>That's Brooks, 1982. The time has changed. The message has stayed the same. </p><p>Reference</p><p>Brooks, Frederick P. Jr. <em>The Mythical Man-Month. Essays on Software Engineering. </em>Addison-Wesley Publishing Company. 1982.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/06/designing_software_when_youre.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/06/designing_software_when_youre.html</guid>
         <category>GROWTH Strategy</category>
         <pubDate>Mon, 28 Jun 2010 15:23:30 -0800</pubDate>
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         <title>Bolles on Higher Mission</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p><em>Parachute </em>certainly has been a business basic text for decades. Since Bolles has focused so squarely on&nbsp;<em>&quot;Hard Times&quot;</em>&nbsp;this time around, re-examining his prescription for starting a job-change effort is in order. His three parts of a human mission (Bolles, 248):</p><ol><ol><li><em>To seek to stand hour by hour in the conscious presence of God, the One from whom your Mission is derived.</em></li><li><em>To do what you can, moment by moment, day by day, step by step, to make this world a better place, following the leading and guidance of God's Spirit within you and around you.</em></li><li><em>To exercise the Talent that you particularly came to Earth to use-your greatest gift, which you most delight to use,in the place or setting that God has caused to appeal to you the most, and for those purposes that God most needs to have done in the world.</em></li></ol></ol><p>Somehow, I don't think he'd mind if we each pause to consider what his statement means for us - and our teams. &nbsp;</p><p>Reference</p><p>Bolles, Richard N. <em>What Color Is Your Parachute? &quot;Job-Hunting in Hard Times&quot; Edition 2010. A Practical anual for Job-Hunters and Career-Changers.</em> Ten Speed Press. 2010. </p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/06/bolles_higher_mission.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/06/bolles_higher_mission.html</guid>
         <category>Personal Strategy</category>
         <pubDate>Wed, 09 Jun 2010 12:53:22 -0800</pubDate>
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         <title>Kennedy: Take the Serious Road</title>
         <description><![CDATA[<p><a href="http://www.mixnerstrategy.com/">www.mixnerstrategy.com</a></p><p>Being the younger brother and later to leave home,&nbsp;Teddy Kennedy formed a close relationship with his father, Joseph P. Kennedy. Teddy quotes his father suggesting how he structure his life (Kennedy, 162):</p><blockquote><p align="left"><em>You can have a serious life or a nonserious life, Teddy. I'll still love you whichever choice you make. But if you decide to have a nonserious life, I won't have much time for you. You make up your own mind. There are too many children here who are doing things that are interesting for me to do much with you.</em></p></blockquote><p align="left">Teddy made his choice. He tried harder to have a serious life. He made all the errors we all know so much about. But he also made a choice to focus on what was serious. We owe him a lot for that. </p><p>Reference</p><p>Kennedy, Edward M. <em>True Compass. A Memoir.</em> Twelve. 2009.</p>]]></description>
         <link>http://mixnerstrategy.com/blog/2010/06/kennedy_take_the_serious_road.html</link>
         <guid>http://mixnerstrategy.com/blog/2010/06/kennedy_take_the_serious_road.html</guid>
         <category>Personal Strategy</category>
         <pubDate>Wed, 09 Jun 2010 12:35:55 -0800</pubDate>
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