Speed Learning in the Workplace

Getting a college degree may help you land a great job but staying on the same payroll for a few years may depend upon how quickly you can keep up with changing demands and skill sets. With time at a premium, most employees cannot return to school nor pay for additional training.  To avoid layoffs and turnovers, company leaders are turning to social networking software solutions to help make their employees smarter, more resourceful and, hence, substantially more productive. How do they do it?  

With the human brain only capable of holding 5 bits of information at any one time, speed learning is less about personal assimilation of complex concepts and more on locating individuals within an organization with the required knowledge base.  If compared to a search engine such as Google, social networking would be the ultimate research experience.  Instead of having to query and search through a list of possible matches, social networking software helps the best solution locate the person making the query.  Promoted properly throughout an organization, the potential advantages and efficiencies to be gained using social networking software to solve problems or gain new insights, could be truly extraordinary.  Once more, anyone within an organization from an assistant to a senior manger are equally empowered to leverage the organization’s in-house expertise.  With these tools readily available, speed learning, as a means to an end, can actually be achievable, fun, and effective.

Unfortunately, there is one caveat.  The success of social networking software depends upon the level of penetration and adaptation at all levels within an organization.  If only one or two departments use the software, questions will go unanswered or the depth of expertise will become less effective.  To counter the inertia for change, software manufacturers include additional features for sharing web sites, photos, documents, videos, and processes.  Their designs deliberately appeal to the Facebook user so that people within an organization can find multiple reasons to interact or form communities and hence, increase the likelihood that important queries get seen.

In the case of Unisys, a worldwide information technology company with 15,000+ employees, their CEO. J. Edward Coleman, became an early adapter and role model for their social networking initiatives. Employees were encouraged to register their personal credentials at a ‘MY SITE’ web page so others could easily locate them based on their expertise. At another web page called ‘ASK ME’, employees could search for advice or guidance by simply typing in a question.  For sharing visions and goals, the company created a company-wide Advisory Council, which included regular comments from top management.

Speed learning is sustainable when workers perceive their organization as a reliable resource that they can tap on regularly.  Aside from a software solution, companies should also encourage internal chat groups (i.e. LinkedIn), podcasts from experts, wiki-style blogging sites, and regular lunch meetings with upper management.  At their venue of choice, workers can discuss issues, give meaning to data results, or test new ideas.  However, speed learning should not be limited to just within an organization.  When appropriate, outside consultants, suppliers, or customers should participate in a facilitated discussion process where strategic issues to improve efficiencies along a supply chain, for example, can be openly evaluated.

To ensure that each venue remains on target, a trainer, business coach or facilitator is recommended.  Their role is crucial to promote the service, monitor its progress, and ascertain that the learning process is constantly growing and improving in a progressive manner.

There are a number of social networking solution options to choose from.  Some packages favor one feature over others and should be evaluated to make sure they can meet intended requirements.  To help get you started, I have listed some of the most popular social networking software packages in use today.

———————————-

Yammer (www.yammer.com) – A free private social network for small and large companies, Yammer works great for people who have quick and brief questions that need prompt answers.  It is a secure package that can easily leverage the wide range of expertise and experience within an organization.

Jive (www.jivesoftware.com) – Considered by Gartner as the best-of-breed enterprise social networking solution that can be customized by in-house consultants. Jive offers both an internal solution for employees and an external one used sometimes referred to as Social CRM that monitors customer inputs from other social media outlets such as Twitter.  Not for everyone, Jive’s pricing is volume based.

Newsgator (www.newsgator.com) – A Microsoft SharePoint add-on, Newsgator makes SharePoint social.  It offers community sites based on projects, initiatives, and common interests.  SharePoint is Microsoft’s version of a collaboration enterprise package where workers can share web sites, manage documents, and publish reports.

Salesforce Chatter (www.salesforce.com/chatter) – Fully integrated with SalesForce.com, this package can help workers discover resources and ideas, connect with people and content, and collaborate with business processes in context.  If you already use SalesForce.com this package is a great way to incorporate social networking within your organization..

Social Text - (www.socialtext.com) – Operated by a group of young, dynamic, and ambitious programmers, SocialText.com offers the ability to create impromptu community spaces for online group communication and collaboration.  Their approach to social networking begins with familiar Facebook-like features that can be easily modified for business applications.

Inflation vs Debt Forgiveness

As the rich get richer and the poor become poorer, the global middle class, the ballast of an economy, is fading away rapidly!  Will history repeat itself with another global recession? …or will technological equalizers instigate radically different outcomes similar to the Arab Spring? 

2012 will launch under an uncertain backdrop due to a slew of upcoming political elections in major economies. The newly elected officials will inherit an inefficient global economic system burdened with debt that under the best of circumstances may take several decades to repay. Without the presence of a strong middle class, however, the lack of sufficient funds to service global debt load could threaten public sector payrolls and hence the key supply of political votes. As long as the global economic model remains unchanged, an era of international debt forgiveness will precede any major political changes.  Just as home-owners have walked away from mortgages greater than the value of their homes, so to will indebted countries force their creditors to take significant write-downs.  Eventually the global economic system will collapse under its own weight as lenders and shareholders to affected banks miss their interest payments too.

This dire scenario, likely or not, should help readers see through the clutter of political rhetoric and appreciate the incredible importance of supporting a healthy middle class.  For example, a strong middle class offers the tax collection engine to pay down debts by training and employing a workforce that sustains local and export-based industries. It also keeps the wealthy in check by allowing new entrants and keep the poor in line to become law abiding citizens and contributors.

What chance does the middle class have in today’s political climate?  Consider North Korea where a family’s militant rule has mesmerized the population into a fanatical frenzy unaffected by the usual stimulants of change such as starvation or border profits.  …or Venezuela where political loyalties are exchanged for basic needs.  …or China where a centralized ruling party dictates price levels and exchange rates.  …or Russia where cronyism and mafias undermine social freedom.  …or Spain where the unemployment rate of young professionals is rampant.  …or Pakistan where the military and the ruling party are at a ‘Mexican Standoff’.  …or Iraq where the US military exodus may soon result in a civil war.  …or Greece where the ECB plans to establish local branches to attract local funds, hence eroding any chance of a middle class comeback any time soon.

Under these real world circumstances, any middle class would have a tough time thriving.  What then can be done, when the cost of servicing debt undermines innovation, growth, and progress? How likely will a wired middle class hold out for two decades longer to make good on their debts?  No doubt something will give in, sooner than later. Will it be inflation, debt forgiveness, or both?

Modernizing the Euro

As Merkel and Sarkozy raise the poker stakes for a more stable euro, international bankers are folding. The combination of heavy laden debt with a crisis of confidence is proving unsustainable. Could or should the euro survive?

The principal pillars supporting the euro are buckling under the weight of unsustainable debt from their weakest members.  Countries such as Greece, Italy, and Spain are faced with a near impossible task of competing against members with more efficient economies.  They are also borrowing funds in a common/strong currency (euros) at significantly higher interest rates than their norther brethren.  Without the ability to devalue their currency to instigate export growth, these less efficient economies will only become weaker not stronger.

Based on lender stipulations, primarily from German sources, debt laden countries must convince their voters to accept lower wages and pay higher prices.  Understandably, elected leaders from both sides worry about inciting social unrest and potentially losing their own jobs.  They are also concerned of losing their best and brightest workers to better paying jobs elsewhere, a serious situation that could potentially impact their future generations of indigenous leaders.

Some industry experts suggest the creation of a federalized central banking authority that would be accountable for the aggregate interest of all member countries.  As it stands today, the decision makers responsible for the euro’s survival are only accountable to their own local voters and have no incentive to consider a common solution.  As though apathy was not enough of a deterrent for progress, EC voting representation is also lopsided.  Rather than being slated by population size, decisions are voted upon by membership, hence, a vote cast by the island of Cyprus is equivalent to a vote from France.  Other experts suggest giving the ECB (via the IMF) greater authority to buy up depressed bonds from anxious bondholders using freshly minted euros, but the potential inflation caused by printing money and the inevitable interest rate increase that would follow, could trigger a greater recession.

A Viable Solution: In view of the obsolete political infrastructures among members,  European leaders should focus on increasing the valuation of their political currency through radical institutional reforms combined with a moderate devaluation of the euro to help monetize the debt load.  This solution could be achieved by having three different exchange rates for the euro currency that would reflect the level of sovereign debt by each member.  The most devalued rate would be extended to new potential EC members who would early on recognize the authority of a federalized ECB.  This modernized approach would not only strengthen the euro’s survival but also fill its pipeline with better prepared future EC members.

Open Source Nouveau at MIT

At a recent emerging technology conference at MIT called EmTech ’11, a diverse blend among young innovators (under 35) and corporate leaders converged to share their renewed views and perspectives for the next chapter on investing, competing, and surviving in a crisis bound world.

At center stage was Joichi Ito, the newly hired director for MIT’s Media Lab.  Mr. Ito, a self-made entrepreneur/investor, brings with him a Silicon Valley secret sauce where innovators learn from each other within an open source environment. Drawing from his club management days, Ito forms impromptu meetings among diverse experts to discuss new trends and ideas.  His leadership style is contagious, humorous, and organically instigating.  With a travel schedule he calls ‘bankrupt for free time’, Ito travels the world to expand his open source influence.  When asked how one can profit from an open source environment (where innovative ideas are given away for free), Ito points to using open source discussions to determine revenue model innovations.  He highlights FireFox as a browser company that gives everything away for free, but through a clever revenue model will take in over $200 million in revenues this year.

Other EmTech presenters seemed to go along with Ito’s open source theme.  For example, IBM’s Smart Grid initiatives focus on instigating behavioral changes along a redefined value chain, forcing a convergence among new talents and industries, another open source opportunity in the making.  IBM’s process is designed to self-correct over time using an hierarchy forecasting methodology. Ford Motor is a good example of a company benefiting from open source innovations. Their EV Cloud Car concept is just an enlarged version of the Ipad.  Using purchased Apps, car buyers can personalize dashboards, activate special features, and fully customize their driving experience on a destination-basis.

Probably, the greatest challenge for open source is the timely commitment of scarce resources to help the discussion reach new heights. From a company level, Xerox formed Parc.com to show how co-extrusion printing can increase lithium-cobalt oxide battery life by 10% and solar panels by 6%. They view their contribution as another way to pull costs out of a collective process.  Also, start ups like 1366 Technology have successfully removed a step in the production of silicon wafers.  Adopting to this new open source environment, is the ‘fast-dating’ attitude of venture capitalists.  They prefer passion over slick presentations and are willing to forgo a large share to founders.  As Bill Joy from Kliener Perkins shared, “we are spending smaller amounts to gain experience and to stay in the game longer.”

The Art of Social Media

Like barter, social media is one of the oldest forms of cultural exchanges where commerce and ideas have traveled freely from one person to another.  Why then, thousands of years later, has social media suddenly become the rage of our modern society?  How is social media evolving, today?

Newly minted buzz terms such as ‘hyperconnectivity’ point to a social media platform on steroids where endurance is measured by one’s ability to multi-task, multi-chat, and multi-exist for a claim to fame that is self-defined, self-awarded and in some cases, self-defeating (i.e. too many applications and not enough time in the day).  So what are companies doing today to successfully incorporate the ‘new social media’ into their next marketing campaigns?

At a recent Harvard-sponsored event on the future of marketing, called FutureM, experts from a wide range of companies shared their winning formulas and theories.  With the pride of a budding artist, well-known companies presented what they considered to be an optimal social media solution, one that subtly positioned their product message/brand during a consumer’s ‘social experiences’, for example, while chatting on Facebook. Company presenters agreed that the ultimate goal for today’s social media is to give customers critical tips, at the very moment they need them most.  Here are what some companies are doing.

Foursquare.com circumvents GPS regulations by allowing users to opt in and keep track of the whereabouts of their friends and families.  If a user agrees, they can friend a company, such as RadioShack, and regularly receive special coupons when passing an outlet.  Convenient and timely, the coupon is a time-sensitive display on a smartphone.  Another example is Audi.  Audi watches for major weather events to occur prior to triggering a Facebook question where they ask die-hard Audi customers how they survived the current storm or blizzard.  The outpouring of accolades and experiences quickly travel throughout Facebook every time readers click the ‘Like’ button, hence agreeing to share an unusually exciting Audi experience with their Facebook friends.  The viral buzz of how reliable an Audi performs in the worst weather conditions at the time everyone is experiencing bad weather is truly priceless.  Another example… Heineken has integrated a predictive game feature for soccer fans who can gain points every time they guess the next play correctly (ie. a corner kick).  Finally, devices such as the IPAD enable consumers to experience a brand or marketing campaign in entirely new ways. These experiences have become reasons for new conversations, interactions, and exchanges with people we know, some we do not and some that we simply invent.

Creating Jobs in America

With so many Americans out of work, what can our government do to turn this ailing ship around?  They’ve tried buying back our own debt twice to keep interest rates low, but businesses aren’t biting.  Why are they so hesitant and what will it take to defrost our frozen economy?

Most people believe that the financial crisis of 2009 was caused by poorly trained mortgage sales people who managed to successfully game the system.  However, did you ever wonder why everyone was a victim of the financial crisis, while no one was really held responsible?  Perhaps the crisis was caused by something far greater than by a few anonymous and unscrupulous bankers.

Since the early 1900‘s our banking system has never really changed much.  Deposit slips, checks, and even loan applications look and read the same.  Compare this stodgy business model of banking with the jet-setting, super-efficient, internet-based business environment that we live in today.  Can you see the difference?  Our slow and antiquated banking would be similar to using a 300 baud modem to surf the web today or racing in the Tour de France with a child’s tricycle. Unheard of, you say… and that is precisely my point.  It was only a matter of time before our economy would collapse due to the disequilibrium created between a rapidly changing business climate and the antiquated financial system used to govern transactions and monitor financial integrity.  Another visual might be a person trying to drive a car while pressing both the accelerator and the brake at the same time!  Either way, the economy or a bumpy car ride, the experience would be less than reassuring.

Similar to banking, the lack of qualified workers is another reason our economy is anemic.  There are plenty of high paying jobs but the majority of our workforce is essentially unemployable.  You can blame the unemployment crisis on overseas outsourcing or outdated training centers, but the solution for creating jobs in America may lie elsewhere.  For example, rather than focus attention on helping small business owners improve individually, through SBA loans or business training classes, policymakers could leverage existing business expertise, especially among investment bankers, to identify international supply chains where US-based small businesses can participate.  The required work would be second nature to a well trained M&A specialist and could help introduce new levels of efficiencies among small business owners, such as from fewer bankruptcies through better business alignments.  It could also be the optimal scenario for more sustainable jobs in America.  Hmmm… Interesting?  
(For more details visit http://bit.ly/oary43)

Gaming Inflation

If the recent jump in your weekly grocery bill has you worried, guess what?  You are not alone.  In response to higher energy costs, food prices have soared due to the rising cost of harvesting crops, processing foods, and transporting ingredients from the field to a neighborhood grocery store.

The same dollar that purchased a gallon of milk, now only buys a quart.  In short, the US dollar today is worth less due to what is commonly referred to as inflation.   What is inflation and what can we do about it?

Inflation can be caused by an increase in demand or an increase in the supply of money used to purchase goods and services.  In a perfect storm a country expanding economically (i.e China) can drive up the prices of key global commodities such as oil, while at the same time have a devastating affect on contracting economies (i.e. USA) that depend on the same oil to survive.  Consumers in the weaker economy (i.e. USA) must depend on their governments to mint additional currency and inject these funds through various mechanisms to help make ends meet in the short term.  Otherwise, the rising cost of fuel and food in a cash-poor local business environment will trigger economic collapse, because consumers will not have enough cash-on-hand to buy what they need to survive.

Minting more dollars to help consumers what they need is the government’s way of a ‘quick fix’, but it can also trigger severe consequences and side-effects to a local economy or system.   First and foremost is the inevitable increase in the supply of dollars throughout the global banking system.  Too many dollars injected into a system will dilute the value of the other dollars based upon their exchange rates with other currencies.  People holding dollar denominated investments will further aggravate the system by unloading their assets to buyers demanding lower prices.  As the dollar sinks in value worldwide, the cost of US imports rises.  Unless these imports can be replaced through local production (or importers are willing to accept lower margins, an unlikely event), prices will inflate.

Inflated prices among a cash-strapped consumer base is perhaps the primary catalyst needed to overhaul a laggard economy.   Key to a successful and sustainable transition is a government’s willingness to promote innovation and efficiency through effective and realistic policies.  As the various economic crises in Europe continue to teach us, printing money or extending loans is a dangerous game that will only result in inflation.  Politicians should evaluate new business models that can easily integrate financial innovations within a rapidly changing geopolitical world.

High Voltage at the UN

As the annual demand for energy increases due to expanding economies and growing populations, the UN is leading the charge to pull 1.5 billion people out of poverty by providing them access to electricity by 2030. Will it work?

Eager energy suppliers who sense a new global market trend are lining up fast at the UN entrance gates, but only to learn that the rules of the game are also changing.  Government subsidies for renewable projects including the lucrative feed-in-tariffs are drying up.  New solutions are in order including the unthinkable, namely, Public-Private Partnerships or PPP’s, where diplomats and CEO’s collaborate as legally bound partners.

PPP’s are popular with large infrastructure projects such as major highways or public transportation systems.  In exchange for access to capital and management expertise from the private sector. governments use PPP’s to shield private investors from unduly investment risks.  It is no surprise then that a group of CEO’s of utility companies, energy equipment suppliers, UN dignitaries and the World Bank recently convened at the UN to share their experiences and best practices using PPP’s to finance electricity producing projects.  Some examples of the ‘best practices’ given, demonstrated a wide variety of objectives.

For example, AEP’s (American Electric Power) renewable energy sustainability project for the Galapagos Islands located off the coast of Ecuador, focused on structuring partnerships that eventually transfer ownership to the government.  Kansai Electric from Japan traded land and permits with Tuvalu’s local government for a PV Power Plant to be operated by trained local workers.  Kansai Electric’s main objective was to transfer sufficient technology to encourage local production of their solar panels.  The Mexican government’s CFE managed to push construction risk on to the private sector by luring them with guaranteed purchase agreements to be financed using long term loans backed by 20-year PPA’s (Power Purchase Agreements).  Finally Brazil’s Belo Monte’s mega-hydro project, which recently received approval for construction, is leaning on its government to soothe local tensions from indigenous tribes who are at risk of losing their lands.

It was agreed that diplomats and CEO’s view the PPP value proposition very differently.  While diplomats seek reduction of poverty for billions, CEO’s focus on shareholder value.  Their differences are closely monitored by the World Bank whose mission is to attract the right kind of investors for projects that will render the best long term capacity-building results for generating electricity.  On paper and at their first meeting held at the UN on June 2, 2011, the UN’s PPP made an impression among a room full of key players from both sides.  Even if partnerships do not emerge right away, one can be certain that the ground work for a high voltage future at the UN was cast.

Brazil Eyes Ethanol Producers

With sugar prices on the rise, Brazil is importing ethanol to meet its domestic consumption.  This market anomaly has prompted their equipment manufacturers to convince other countries to produce ethanol.  For what purpose? …to secure ethanol imports or to launch a global competitive strategy?

In a move to promote ‘Made in Brazil’ beyond its shores, Brazil is aggressively selling its ethanol production equipment and know-how to other countries including the Dominican Republic.  What Brazilian firms have to offer is significant — over 40 years of experience in an industry that has earned the attention of politicians and investors alike.  Their advice demonstrates the depth of an Olympic-level champion that through trial and error has optimized production to extraordinary levels of efficiency.  Why then is Brazil exporting their expertise and why would anyone be interested in competing with the absolute lowest cost producer?

What is good for ethanol is also good for Brazil.  By getting more governments to write laws that require increasing blending levels of gasoline with ethanol, Brazil believes that the demand for ethanol will continue to rise — followed by a similar increase in the demand for ethanol-producing equipment.  Hence, Brazilian cooperatives such as APLA, Brasil are aggressively showcasing their goods outside of Brazil to countries that have ethanol-blending quotas.  For some of these countries like the Dominican Republic, a base-line efficient ethanol plant that produces about 500,000 liters of ethanol/day and costs around USD$125m would be, in their minds, a good place to start.  That’s a tidy sum for any country, since the price does not include feedstock production and infrastructure expenses.  Brazil appears confident that buyers will emerge.  Some countries already have, despite two glaring issues. First, buyers of Brazilian equipment to produce ethanol will unlikely ever compete on price and capacity with Brazilian made ethanol, and second, Brazil’s profit margins for exported ethanol will always be maximized due to the presence of higher cost producers.

This global strategy encourages Brazil to share its expertise and populate a list of other ethanol producing countries.  As stated in a recent facilitated debate in Santo Domingo between Brazilian and Dominican experts, Brazilians are eager to help any one who buys their equipment.  Their goodwill package includes debt financing for up to 80% of the value of the equipment, consulting, and installation. If this offer is such a good deal, why then are some potential buyers hesitating?  Even at a minimum 20% equity stake, the success of the operation depends heavily on a steady stream of quality feedstock from multiple land owners,  a strong political will to issue permits, and the ability to overcome plant construction and operating delays.

If Brazil stands to benefit from having more producers of ethanol, why wouldn’t they be open to becoming equity investors of these projects as a sign of confidence?  Surely, a buy-back clause overtime would make their investment whole, once the operation is up and running.  It would also provide a higher comfort zone locally, while potentially opening the floodgates for private investor interest elsewhere.  Presently, Brazil’s enthusiasm to promote ethanol production frowns upon partnership interest.  During the debate, their intentions were made clear.  They just want to export their equipment and know-how and assume that their buyers can deal with the other details. Are they right?

Warming up to the New US Census Numbers

What does global warming and the new census data for the US population have in common?

Both issues seem to unveil a growing trend where city-dwellers from northern states are heading south.  Colder winters are one reason but another is the changing cultural composition of future Americans.  Increasing number of Hispanics who tend to prefer warmer climates have soared by 43% in the past decade to 51m.  The Asian population has also kept up at a similar rate with 15m, while Blacks have trailed with an 11% growth rate with 38m.  All together the minority groups swelled at a rate of 29% to 112m.  At 197m, Whites continue to hold a slender majority at 54% for those under 18 years of age and at 64% overall.

The changing faces of Americans are starting to look less white and more tan, bronze, olive, and other hues than ever before.  Already minorities from two of our most populated States, California and Texas, outnumber their former majority.  Where this trend is most noteworthy nationally is at the youngest age groups.  For example, 92% of American three-year olds are no longer originating from the traditional White population.  In the next 20 years when these three year olds become the new members of the American workforce, many will look back at 2011 and wonder how a business or political entity could have ever survived without the many proven benefits from a diversified workforce.