Listening to Renee Mauborgne - author of Blue Ocean Strategy. Blue Ocean Strategy is one of my favourite books. A must read for any leader. What Renee is saying:
"The role of management is to enhance productivity or creativity of organizations.". Clearly we should spend more time on the creativity but reality is we tend to focus more on just the productivity.
Increasingly creativity is going to take on a more important role. In the future, productivity alone will not be enough.
Blue Ocean is about going beyond competition. Too often I see companies chasing the competitor rather than looking for the new untapped markets. The key is to go for market creating rather than market competing moves.
She gives examples of companies entering new markets. They not only can have the lowest cost structure but no price competition. Wow - a business persons' dream.
4 ways to find a Blue Ocean:
1 - Eliminate what customers do not need
2 - Reduce what they do not value
3 - Raise value of what people get from your industry
4 - Create new markets completely
If you can redefine your industry challenge, you will find a Blue Ocean.
They tend to not get copied easily since the market share can become so dominant so quickly and at the same time, they tend to be non-traditional.
Blue Ocean particularly works well in a high cost country like Canada or the US. Over time all Blue Oceans become Red (meaning lots of competition)
In the current economy, Blue Ocean Strategy seems to be the solution. I think the key is to be able to take time to reflect in an environment that stimulates creativity (for me, a conference like this does that for me as does reading a good book) Easily said but ...
Wednesday, October 6, 2010
Professor Joseph Stiglitz and Al Gore
Joseph Stiglitz is a renown professor. Like most of the speakers at World Business Forum, he has authored a few books including Free Fall.
His session was a Q and A style. He is answering semi-political questions about the stimulus program.
He said "we need to retrofit ourselves for global warming"
"We are destroying our human capital".
"The new normal will be much higher levels of unemployment."
"It is not the interest rate that stimulates growth, it is availability of capital"
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Al Gore spoke. Of course a lot about the environment. He emphasized the danger of an energy policy that encourages dependence on middle east oil. His suggestion is security and carbon are closely connected.
As our population moves from 2 Billion to 9 Billion over the next 40 years, our planet will be increasingly taxed. He sees a need to dampen that by education and empowerment of women.
He also spoke of the need for jobs. His suggestion that we can put people to work by moving more strongly into energy alternatives.
Some Quotes:
"a humans we confuse the impossible with the improbable. If it has not happened in the past it will not happen in the future."
"I am a big believer in business and capitalism"
"burning of coal is the largest contributor to global warming. Oil and gas are second"
"2010 so far is the hottest year in history since temperatures have been recorded. The number of all time highs is unprecedented"
" US consumes more oil products than the next 20 consuming countries combined"
"water level rising at 1 cm per decade with the threat of meter plus rises to come"
"China is number one in solar and wind"
"we are entering a period of consequences" (regarding the environment)
Of course he is a good speaker. He is also a consummate politician.
His session was a Q and A style. He is answering semi-political questions about the stimulus program.
He said "we need to retrofit ourselves for global warming"
"We are destroying our human capital".
"The new normal will be much higher levels of unemployment."
"It is not the interest rate that stimulates growth, it is availability of capital"
++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Al Gore spoke. Of course a lot about the environment. He emphasized the danger of an energy policy that encourages dependence on middle east oil. His suggestion is security and carbon are closely connected.
As our population moves from 2 Billion to 9 Billion over the next 40 years, our planet will be increasingly taxed. He sees a need to dampen that by education and empowerment of women.
He also spoke of the need for jobs. His suggestion that we can put people to work by moving more strongly into energy alternatives.
Some Quotes:
"a humans we confuse the impossible with the improbable. If it has not happened in the past it will not happen in the future."
"I am a big believer in business and capitalism"
"burning of coal is the largest contributor to global warming. Oil and gas are second"
"2010 so far is the hottest year in history since temperatures have been recorded. The number of all time highs is unprecedented"
" US consumes more oil products than the next 20 consuming countries combined"
"water level rising at 1 cm per decade with the threat of meter plus rises to come"
"China is number one in solar and wind"
"we are entering a period of consequences" (regarding the environment)
Of course he is a good speaker. He is also a consummate politician.
Steven Levitt - Freakonomics
I am listening to Steve Levitt, author of Freakonomics and Super Freakonomics. He is a professor in economics. He is a micro economist (so looks at the impact in companies and individuals) and does not try to look at the macro economy.
He makes economics interesting. He is funny, self depreciating and a good story teller.
He told the story of a lowly IRS clerk, John Silage, who noticed many of the names of children on forms were strange - like Fluffy and Spike. John suggested to the IRS that they add SSN of children to the tax form. It took a few years to get that idea to get implemented. When it was implemented, 7,000,000 children vanished overnight. This was 1 in 10 children. It made the government billions of dollars.
It was an amazing story of economics. The inertia of big business (like the IRS) to whom it was a minor pain to implement. The low enforcement rate caused low moral compass among a huge percent of the population.
I have always known the data in business is valuable. Levitt re-emphasizes that. There is gold in the data. The more the better. Then of course ask the right questions and do the right analysis.
He talks a lot about marketing. He really appreciates testing and would be a big believer in split run marketing that I write about in "Overspray in Marketing".
He makes economics interesting. He is funny, self depreciating and a good story teller.
He told the story of a lowly IRS clerk, John Silage, who noticed many of the names of children on forms were strange - like Fluffy and Spike. John suggested to the IRS that they add SSN of children to the tax form. It took a few years to get that idea to get implemented. When it was implemented, 7,000,000 children vanished overnight. This was 1 in 10 children. It made the government billions of dollars.
It was an amazing story of economics. The inertia of big business (like the IRS) to whom it was a minor pain to implement. The low enforcement rate caused low moral compass among a huge percent of the population.
I have always known the data in business is valuable. Levitt re-emphasizes that. There is gold in the data. The more the better. Then of course ask the right questions and do the right analysis.
He talks a lot about marketing. He really appreciates testing and would be a big believer in split run marketing that I write about in "Overspray in Marketing".
Tuesday, October 5, 2010
Joseph Grenny
Listening to Joseph Grenny at World Business Forum yesterday. He cowrote The Power to Change Anything, Crucial Conversations: Tools for Talking when Stakes are High, and Crucial Confrontations.
He is a great speaker. Marketing oriented.
"Our greatest capacity is the ability to influence others". "The root cause of underperformance in our organizations is not a lack of ideas, it's a lack of influence," says Grenny. "Through incorporating the Influencer model, leaders can develop a robust strategy to execute on the initiatives most important to their organization."
The key is to know how to "Influence Change". There are 6 Personal Motivations- the first 2 are:
1 - something is more fun or more painful. To influence ideally change fun or pain. Sometimes this is because people are not in touch with the long term impact - EG eat sugar (pleasure now, pain (fat) later.)
Want more influence - tell potent stories.
2 - Sometimes there is a lack of skill. People are just not sure what they need to do. Work on skill building.
Interesting.
Looking forward to another good day today.
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Completely unrelated but I thought this was a good time management book quote:
"Don't let the fear of the time it will take to accomplish something stand in the way of your doing it. The time will
pass anyway; we might just as well put that passing time to the best possible use."
— Earl Nightingale
He is a great speaker. Marketing oriented.
"Our greatest capacity is the ability to influence others". "The root cause of underperformance in our organizations is not a lack of ideas, it's a lack of influence," says Grenny. "Through incorporating the Influencer model, leaders can develop a robust strategy to execute on the initiatives most important to their organization."
The key is to know how to "Influence Change". There are 6 Personal Motivations- the first 2 are:
1 - something is more fun or more painful. To influence ideally change fun or pain. Sometimes this is because people are not in touch with the long term impact - EG eat sugar (pleasure now, pain (fat) later.)
Want more influence - tell potent stories.
2 - Sometimes there is a lack of skill. People are just not sure what they need to do. Work on skill building.
Interesting.
Looking forward to another good day today.
+++++++++++++++++++++++++++++++++++++++++++++++++
Completely unrelated but I thought this was a good time management book quote:
"Don't let the fear of the time it will take to accomplish something stand in the way of your doing it. The time will
pass anyway; we might just as well put that passing time to the best possible use."
— Earl Nightingale
Charlene Li
The current speaker is Charlene Li social media maven and author of Open Leadership anf Groundswell. Of course I find it interesting since I like social media - Facebook (I only do a bit), Twitter, Linkedin and even blogging.
In the age of social media, companies are no longer in control. The media now includes individuals. And individuals can multiply. Li says in this world, companies need to be fast online and open. It is about relationships. Conversation. Transparency.
"Social Media allows any employee to have a greater relationship with customers. It can be inspiring or terrifying."
"Be disciplined about social media". She suggests monitoring comments and then reach out directly to the source or respond publicly. Great theory but for a large company the number of mentions are so great, the magnitude of the job is huge. That is why a company like General Sentiment that measures whether what is said is good or bad can help filter.
She quoted John Hayes - CMO of Amex who said "We tend to overvalue the things we can measure and undervalue the things we cannot".
In the age of social media, companies are no longer in control. The media now includes individuals. And individuals can multiply. Li says in this world, companies need to be fast online and open. It is about relationships. Conversation. Transparency.
"Social Media allows any employee to have a greater relationship with customers. It can be inspiring or terrifying."
"Be disciplined about social media". She suggests monitoring comments and then reach out directly to the source or respond publicly. Great theory but for a large company the number of mentions are so great, the magnitude of the job is huge. That is why a company like General Sentiment that measures whether what is said is good or bad can help filter.
She quoted John Hayes - CMO of Amex who said "We tend to overvalue the things we can measure and undervalue the things we cannot".
Jack Welch
I am listening to Jack Welsh at World Business Forum. He certainly has opinions.
I am not a big Jack Welch advocate. I see him as harsh on people. I view his black and white opinions as well...too black and white. This said, he has a lot we can learn from.
He actually does twitter and does his own tweets.
I like Jack's view that HR is a critical function. He really emphasizes hiring the best people. He is famous for his "fire the bottom 10%". It is known by some as Rank and Yank. His assumption is that you can know which are the best.
When asked the question about this. He does acknowledge that people are not in the "category" forever.
Jack says "those guys that say getting rid of the bottom 10% demoralizes people have been in the classroom too long"
I like that he is in favor of trade and likes entrepreneurs. Welch said "We have to grow the pie. We have to celebrate entrepreneurs. "
I like his views on innovation (we need more of it and it is a key driver).
Some Quotes by Jack Welch
"Be candid with everyone. "
"Change before you have to. "
"Control your own destiny or someone else will. "
"Face reality as it is, not as it was or as you wish it to be. "
"Giving people self-confidence is by far the most important thing that I can do. Because then they will act. "
"If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don't have to manage them. "
"The Internet is the Viagra of big business. "
I am not a big Jack Welch advocate. I see him as harsh on people. I view his black and white opinions as well...too black and white. This said, he has a lot we can learn from.
He actually does twitter and does his own tweets.
I like Jack's view that HR is a critical function. He really emphasizes hiring the best people. He is famous for his "fire the bottom 10%". It is known by some as Rank and Yank. His assumption is that you can know which are the best.
When asked the question about this. He does acknowledge that people are not in the "category" forever.
Jack says "those guys that say getting rid of the bottom 10% demoralizes people have been in the classroom too long"
I like that he is in favor of trade and likes entrepreneurs. Welch said "We have to grow the pie. We have to celebrate entrepreneurs. "
I like his views on innovation (we need more of it and it is a key driver).
Some Quotes by Jack Welch
"Be candid with everyone. "
"Change before you have to. "
"Control your own destiny or someone else will. "
"Face reality as it is, not as it was or as you wish it to be. "
"Giving people self-confidence is by far the most important thing that I can do. Because then they will act. "
"If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don't have to manage them. "
"The Internet is the Viagra of big business. "
Jim Collins
I am blogging live at World Business Forum.
The first speaker is Jim Collins - author of Good to Great and Built to Last.
"Good is the enemy of Great."
Good to Great studied
Built to Last studied why some companies last and why others fail. He identified 5 stages of decline. The scary part is it is not until stage 4 that companies realize they are in decline.
The stages:
1 - Hubris. Arrogance. I have often seen this characteristic in not only successful companies but in successful people. The obvious answer - practice humility.
2 - Undisciplined pursuit of more. I can see how companies fall into this trap.
3 - Denial of Risk and Peril. I always like Andrew Grove's(Intel) quote and the title of his book "Only the Paranoid Survive". To remain great, companies must see the risks.
4 - Grasping for Salvation.
5 - Failure.
Some Jim Collins quotes:
"I've never found an important decision made by a great organization that was made at a point of unanimity. Significant decisions carry risks and inevitably some will oppose it. In these settings, the great legislative leader must be artful in handling uncomfortable decisions, and this requires rigor."
"Level 5 leaders are differentiated from other levels of leaders in that they have a wonderful blend of personal humility combined with extraordinary professional will. Understand that they are very ambitious; but their ambition, first and foremost, is for the company's success. They realize that the most important step they must make to become a Level 5 leader is to subjugate their ego to the company's performance. When asked for interviews, these leaders will agree only if it's about the company and not about them."
The first speaker is Jim Collins - author of Good to Great and Built to Last.
"Good is the enemy of Great."
Good to Great studied
Built to Last studied why some companies last and why others fail. He identified 5 stages of decline. The scary part is it is not until stage 4 that companies realize they are in decline.
The stages:
1 - Hubris. Arrogance. I have often seen this characteristic in not only successful companies but in successful people. The obvious answer - practice humility.
2 - Undisciplined pursuit of more. I can see how companies fall into this trap.
3 - Denial of Risk and Peril. I always like Andrew Grove's(Intel) quote and the title of his book "Only the Paranoid Survive". To remain great, companies must see the risks.
4 - Grasping for Salvation.
5 - Failure.
Some Jim Collins quotes:
"I've never found an important decision made by a great organization that was made at a point of unanimity. Significant decisions carry risks and inevitably some will oppose it. In these settings, the great legislative leader must be artful in handling uncomfortable decisions, and this requires rigor."
"Level 5 leaders are differentiated from other levels of leaders in that they have a wonderful blend of personal humility combined with extraordinary professional will. Understand that they are very ambitious; but their ambition, first and foremost, is for the company's success. They realize that the most important step they must make to become a Level 5 leader is to subjugate their ego to the company's performance. When asked for interviews, these leaders will agree only if it's about the company and not about them."
"A great company will have many once-in-a-liftetime opportunities."
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