StrategyDriven Podcast Special Edition 32 – An Interview with Nilofer Merchant, author of The New How

StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.

Special Edition 32 – An Interview with Nilofer Merchant, author of The New How explores the transformation of the traditional, top-down approach to strategy planning and execution into a collaborative process proven to be significantly more effective. During our discussion, Nilofer Merchant, author of The New How: Creating Business Solutions Through Collaborative Strategy and Chief Executive Officer of Rubicon Consulting, shares with us her insights and illustrative examples regarding:

  • the definition of business strategy
  • why input from those lower in the organization is needed when formulating the organization’s strategy
  • why being the ‘Chief of Answers’ is harmful to the planning process and what can be done to avoid assuming this role
  • why it’s important for everyone within an organization to understand its strategy
  • the ‘First Principles of the New How‘ and why they are important to strategy development and execution

Additional Information

In addition to the invaluable insights Nilofer shares in The New How and this special edition podcast are the resources accessible from her websites, www.RubiconConsulting.com and www.The-New-How.com.   Nilofer’s book, The New How, can be purchased by clicking here.

Final Request…

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About the Author

Nilofer Merchant, author of The New How, is Chief Executive Officer of Rubicon Consulting, a strategy and marketing consultancy designed specifically to serve the needs of technology companies. Nilofer has honed her unique collaborative approach to solving tough business problems while working with and for companies such as Adobe, Apple, Nokia, and HP. To read Nilofer’s complete biography, click here.

Adaptive Project Framework is not your Father’s Project Management

We all agree that projects are unique. They will never happen again under the same set of circumstances or conditions. Given that, wouldn’t it be reasonable to expect the management of those projects to also be unique?

The world doesn’t stand still just because you are managing a project. That is one reason why requirements cannot possibly be completely documented at the initiation phase of a project. Whatever management approach you choose to use for your project must be adaptable to changing conditions. Traditional project management models are poorly equipped to accommodate change.


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About the Author

Robert K. Wysocki, Ph.D., has more than forty years of experience as a project management consultant and trainer, information systems manager, systems and management consutant, author, and training developer and provider. His sixteen books on project and IT management include the PMI-recommended Effective Project Management, Fifth Edition (Wiley, 2009). In 1990, Robert founded Enterprise Information Insights, Inc. (EII), a consulting and training practice that specializes in helping large organizations run projects more effectively. His clients range from AT&T and Aetna to the U.S. Army Signal Corps, Wal-Mart, and Wells Fargo.

StrategyDriven Podcast Special Edition 31b – An Interview with Stacey Hanke, author of Yes You Can!, part 2 of 2

StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.

Special Edition 31b – An Interview with Stacey Hanke, author of Yes You Can!, part 2 of 2 explores the internal and external communications factors that help us positively influence those around us to take the actions we desire. During our discussion, Stacey Hanke, author of Yes You Can!: Everything You Need From A to Z to Influence Others to Take Action and President of 1st Impressions Consulting, shares with us her insights and illustrative examples regarding:

  • key actions that make meetings more effective, including:
    • the purpose for holding a meeting versus other forms of mass or group communication
    • when meetings should be scheduled and agendas provided
    • rules of thumb for determining who to invite to a meeting
  • how to overcome one’s fear and deliver great presentations
  • presentation bad habits and why they should be avoided

Additional Information

In addition to the outstanding insights Stacey shares in Yes You Can! and this special edition podcast are the resources accessible from her website, www.1stImpressionConsulting.com.   Stacey’s book, Yes You Can!, can be purchased by clicking here.

Final Request…

The strength of our community grows with the additional insights brought by our expanding member base. Please consider rating us on iTunes by clicking here. Rating the StrategyDriven Podcast and providing your comments online improves our ranking and helps us attract new listeners which, in turn, helps us grow our community.

Thank you again for listening to the StrategyDriven Podcast!


About the Author

Stacey Hanke is founder of 1st Impression Consulting, and author of Yes You Can!: Everything You Need From A to Z to Influence Others to Take Action. Her client list is vast; including Coca-Cola, Kohl’s, United States Army, Navy and Air Force, Leo Burnett and the FDA. She has been featured by SmartMoney magazine, Business Week, Chicago WGN and WLS-AM. To read Stacey’s complete biography, click here.

StrategyDriven Editorial Perspective – How to Respond to the Government’s Takeover of the Economy

Recent government action ignited a new debate regarding the extent of Federal control over the marketplace. While some would collate the government’s degree of control to that of its spending, we believe this relationship to be inappropriate because purchasers exert indirect influence over an organization. Instead, we suggest the government’s direct control over an industry or organization stems from its majority ownership position or significant regulation of those groups. Therefore, we believe the Federal government controls approximately fifty-one percent of the nation’s economy as derived by its ownership and regulatory controls of:

  • U.S. Financial Industry – representing approximately 33 percent of the U.S. marketplace, the U.S. Government gained control through the Troubled Asset Relief Program (TARP) and separate bailouts of mortgage giants Fannie Mae and Freddie Mac.
  • U.S. Healthcare Industry – representing approximately 17 percent of the U.S. marketplace, the U.S. Government gained control through the passage of healthcare legislation in March 2010.
  • Other Major U.S. Businesses – representing approximately 1 percent of the U.S. marketplace, the U.S. Government gained control through bailout purchases of stock from companies such as General Motors and Chrysler.

“Now we have the federal government taking over ownership or control of 51 percent of the American economy.”

Michele Bachmann
U.S. Representative – Minnesota (R)


Why is all of this important?

The Federal Government has shown itself to be anything but a passive owner. After taking control of General Motors, the Federal Government expelled the CEO of that company.1 Similarly, the Federal Government has limited and in some cases reduced the compensation packages of the senior executives of those companies that have received financial bailouts.2, 3 Thus, the government and not the private marketplace is now dictating these business rewards.

Why should this be a concern for any business other than those directly involved?

Activist government participation in the marketplace suggests that politicians may take other actions to the benefit of those organizations the government owns. In fact, they already have. Aggressive attacks against a competing organization as was evident by the recent General Motors ad campaign specifically targeting its besieged competitor, Toyota, and the extensive public Congressional hearings involving Toyota executives over its cars’ sudden acceleration problem. None of Toyota’s other competitors waged ad campaigns specifically targeting the automaker nor was the government as publicly vocal when poor maintenance practices at one of its Tennessee Valley Authority coal plants created one of the worst environmental disasters in U.S. history on December 22, 2008.4

This past activism suggests politicians may be willing to aggressively seek to dictate terms to suppliers of its organizations; not only in the name of good business practice but for political reasons supporting those in government. Combined this with the fact that the Federal government exerts significant direct ownership and control over approximately fifty-one percent of the U.S. market and it becomes evident that government officials will influence a vast number of businesses within the United States.

StrategyDriven Recommended Practices

  • When at all possible, organizations should consider conducting their financial business with only those financial institutions not controlled by the U.S. Government, namely those organizations that have not received and do not appear to be at risk of receiving government bailout funds such that the government could the dictate the terms of their business operations. The goal is to minimize the organization’s exposure to government imposed stipulations associated with any borrowing that cannot be immediately paid back to avoid such stipulations.
  • Businesses should seek to diversify their portfolios such that they are not overly reliant on the sale of products and/or services to controlled organizations. The goal is to provide flexibility such that the organization could shift of cease business relationships with those government controlled organizations should unacceptable terms be demanded.
  • Businesses should factor in an additional risk if entering into the market of a government controlled organization. The goal is to account for the almost unlimited financial backing the Federal Government provides controlled organizations and its apparent willingness to use that funding to succeed in the marketplace.
  • Minimize consumption of government controlled organizational products. The goal is to minimize the risk exposure the organization faces should politicians seek to exert influence through the restriction of needed products or services. Additionally, this practice recognizes that government employees are typically better compensated than their private sector counterparts.5

In principle, these actions are not to suggest an organization not do business with the Federal Government, government controlled organizations or within government controlled industries. Rather, we suggest an organization not become overly reliant on the business transactions conducted with such entities in order to be able to resist government dictates over the organization’s business operations. Such standards, quantity, and pricing dictates do come from other large organizations such as Wal-Mart. Unlike these cases, however, politically motivated government officials are more likely to build in additional social program requirements as a part of their dictates thereby inflating a company’s overall costs and subsequently jeopardizing its ability to provide market competitive products and services to its other buyers. The only way to avoid such government intrusion is to ensure sufficient diversification exists in the organization’s financial support, supply chain, and customer base.

Final Notes…

StrategyDriven is aware that several reputable organizations such as FactCheck.org and CBS have refuted the notion that the Federal Government controls fifty-one percent of the U.S. economy.6, 7 All of these organizations base their position on the fact that annual government spending accounts for approximately twenty percent of GDP. We respectfully disagree.

A purchaser, even a major purchaser, of an organization’s products and services exerts an indirect influential control over an organization. The greater the percentage of an organization’s output that is purchased, the greater the force of indirect influence that can be exerted. While the Federal Government’s twenty percent of GDP purchasing power gives it significant marketplace influence, this is not the type of direct control referenced in the assertion that the governments owns or controls fifty-one percent of the U.S. economy.

Direct control is very different. With direct control, an individual or institutes gains the authority to dictate the actions of the controlled business. Direct control comes from one of two means, ownership or regulation. Through its bailout purchase of a majority share of corporate stock, the U.S. Government has gained control over numerous businesses such as General Motors. Through the recently passed healthcare regulation, the government has dictated the product and service offerings and prices of numerous companies as well as the purchasing habits of all U.S. citizens within this space.

The government’s direct control over numerous businesses, begotten through ownership and regulatory policy, is why StrategyDriven believes the U.S. Government has control over fifty-one percent of the U.S. economy. The firing of GM’s CEO and caps and reductions of CEO salaries as cited above further illustrate the government’s use of its direct control over businesses that were once part of the private sector.

As always, StrategyDriven is not taking a position as to whether or not this degree of ownership and control by the Federal Government is appropriate. Instead, we simply highlight the consequences of these actions, namely that political forces will now intermingle with market forces to dictate the course of business. Given the extent of the government’s control over the previously private marketplace, this introduction of political drivers will have significant ramifications and warrants consideration and responsive action by business executives and managers.

Final Request…

StrategyDriven Editorial Perspective PodcastThe strength in our community grows with the additional insights brought by our expanding member base. Please consider rating us and sharing your perspectives regarding the StrategyDriven Editorial Perspective podcast on iTunes by clicking here. Sharing your thoughts improves our ranking and helps us attract new listeners which, in turn, helps us grow our community.

Thank you again for listening to the StrategyDriven Editorial Perspective podcast!

Sources

For an up-to-date listing of U.S. Government bailouts, see: “Eye on the Bailout – Bailout Recipients,” Pro Publica (http://bailout.propublica.org/main/list/index).

Leadership Inspirations – Being Mediocre

“Only the mediocre are always at their best.”

Jean Giraudoux (1882 – 1944)
French novelist, essayist, diplomat and playwright