Category Archives: Rigidity

Opportunity in Every Storm

Five years ago this last Monday, Katrina struck along the Gulf Coast. Its aftermath still lives with us, the 9th Ward in New Orleans still devastated with diminishing hope. The Katrina experience was transformative along many dimensions. It graphically illustrated the execution rigidity borne of planning and responsiveness that comes from leadership gained through cronyism and political machines. Lives were lost and value was destroyed in an experience that put light on our soft underbelly. In fact, 1836 people died and 135 were missing and financial losses exceeded $108 billion. The aftereffects from looting, violence, and losses to the economies would fill scores of books. It reshaped the local economy, created a diaspora of resources and cast doubts globally about our values.

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I’m Shocked

The 9.0 earthquake that devastated northern Japan continues to have severe aftershocks. They are shocks in what clever physicist would ascribe to a type of space-time. It’s not about Star Trek stuff, or the time travel that fantasies love to use, but rather how one type of event starts a whole series of other events along a different type of path, affecting a different space at a different time, but connected. These types of other events are very real “butterfly effects” where a small change in one place can cause a whole bunch of changes downstream. Believe it or not, that earthquake has changed our lives, our businesses, and our collective futures.
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Steering and Branding

What’s in a name? How about the three R’s: recognition, reputation, and revenues? What’s the value of a brand? BRANDZ has just published their evaluations and valuations of global brands. It’s a measure of just how valuable the commercial brand is and supporting insight into the whys and wherefores. The shifts and changes in their rankings are a barometer of how our choices of who delivers value are manifested in our buying behavior. It’s not an opinion poll, but rather an evaluation that incorporates business results with analysis inclusive of some subjectivity.
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Getting the Point

The Macedonian Phalanx was a battlefield formation developed by King Philip, father of Alexander the Great. It was the most effective military ground weapon to meet enemy forces head on, enabling attack by cavalry and other forces along the flanks. It utilized collapsible long spears and was virtually undefeatable for over 300 years. It combined the interlocking and cohesion of shields and the long reach of the spear. The units were well trained. It was a marvelous combination of strategy, technology, resources, process and, execution. Sounds like a phrase of a business book.
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Going Nuclear

Over that last couple of years, we’ve highlighted the evidence and perspectives that our business world is increasingly more dynamic, interdependent, highly networked, dangerously complex, and managed by tools and traditions built on much more stable process experience. Business models and algorithms, control systems, enterprise tools and performance improvement technologies derived significant power from the likelihood that behavior repeat sufficiently to enable the power of statistics to improve decision making. I many cases, that stability and value remains and I expect that that will go on beyond any horizon I can conjure. In fact, Dr. Deming encouraged us to look at the world through the lens of Plan, Do, Check, and Act, and his truism remains eternal.
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Going to Pieces

It’s hard to miss the changes in the media world, specifically, the demise of the Blockbuster empire. Netflix has a business model that is a game changer, a Blockbuster buster, as iTunes changed the way we access music and other entertainment, a CD and DVD killer. The world of content will soon be without the burdens of physical media. I’m fascinated by the Blockbuster busting by a competitor, one implementing the very strategy that made Blockbuster king of the block. Blockbuster was the brainchild of Wayne Huizenga, an entrepreneur recognized for this value creation strategies. Huizenga’s strategy was to take businesses that were very fragmented in the marketplace and integrate them, creating customer value. He did the same in the world of waste management. Interestingly, Netflix saw the Blockbuster blindness to its current fragmentation and jumped in.

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Roads, Forks, and Prongs

The term robber baron is said to have originated as a medieval name attributed to those that controlled passage on the Rhine River and charged exorbitant tolls. They recognized the power they held, as constrainers or enablers of commerce. The term lived on and thereafter was attached in 19th century America to the magnates that built and operated the railroads. Their power, the same as their predecessors, came as they became the harvesters of the power that came to gatekeepers to commercial traffic. The big and exciting commercial wars in the mid to late 1800’s were about control of the rails. The magnates who built the rails, steamship lines, and the routes of commerce did much to shape the course of history and how we operate today. We may not recognize names like Gould, Crocker, Flagler (outside of Florida), Harriman or Vanderbilt, but their tribe of visionaries and shapers continues on.
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The Winter of Our Discontent

The yearly onset of winter has been a critical milestone in our history, life for that matter, on this planet. It triggered severe constraints in access to food, travel, safety and the quality of life overall. Travellers who needed to get across mountain ranges had to make tough choices, and often make winter quarters and postpone travel until the thaws. Even in war, some armies huddled in winter and fought from early spring to late fall. Today, winter continues to constrain and often reminds us that our advancement and technology can be humbled by severe weather. Those in the tropics see a different face of nature, the tropical cyclones and monsoons.

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My Way or the Highway

American Airlines war with the web is a fascinating series of events. Nobody can argue that the web is the neural and circulatory network for the preponderance of businesses. Unavailability and inaccessibility are likely to be two deathly symptoms of a commercial entity headed for life challenging times. Now, when I hear about accessibility issues, I tend to associate them with technical or network failures. Something broke, or glitches or evildoers are driving the calamity. Not so in this case. This war has to do with how accessibility is managed. American has made a decision that they will set the rules of how customers can access them.

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Who’s in Your Wallet?

Many great cities over developed for one important reason. They were at crossroads, or at bays, river crossings, or safe harbors. Some were near resources to be harvested or emerging roads, tracks, or caravan routes. They grew because they were or would become markets. Markets towns enabled trade, commerce, and exchanges that enabled value creation. Agriculture, mining, cattle, diamonds, forestry … all types of enterprises emerged, so that exchanges could be made, with money or barter as instruments. We could get and sell stuff. For most of human history, markets were visible, tangible, and somewhere we travelled to buy or sell. This tangible requirement and the transportation linkages determined life or death to commerce and the development of cities. Ask the railroad towns that were bypassed by the interstate highway system or mining towns that had no metals or minerals left to harvest. Our conquest of time and space over centuries has shaped this dynamic.

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