Ken's Business Musings

The Car Wash Factor - Optimism Abounds

2009-01-25T21:48:00.005-05:00

I wrote in an earlier post, early in the financial crisis (May 2008 to be exact) of the "Car Wash Factor". The premise being that the car wash at a local convenience store (Weigels) was a leading indicator of the financial health of the economy. Today, to my amazement given recent news on plant closings in our area, the car wash was six and seven cars deep while I passed by. I have to declare, based on my earlier surmise, that optimism is rebounding and that the economic recovery is underway. This may be more based on my own hopes for the future, but, like all predictions, time will tell. Welcome back to the American consumer.

An interest armrest article

2008-12-23T21:37:00.002-05:00

A good article regulating armrest wrestling.....

A Good Meeting - Pace and Tempo

2008-12-23T21:12:00.000-05:00

Many, many things have been written about meetings, lots of bad material and lots of good material. My take is simple. The meeting must be set to accomplish something and they must have pace and tempo.

Pace is speed at which a meeting is conducted and is a tough balancing act for the moderator. Endless discussion must be channeled. It is important to have everyone have input, but endless loops must be avoided or eliminated. The opposite is also truth, though. The meeting cannot be a dictatorial, marching-orders type meeting, with the expectation that everyone will be on board. These types of meetings are sure to produce either outright or passive resistance.

The second characteristic is tempo. Meetings generally fall into three categories; one-time ad-hoc, multiple ad-hoc or repeating meetings. It is important that multiple ad-hoc and repeating meetings have a good tempo. Too fast and nothing gets done between meetings. Too slow, or worse, no follow-through, and the meeting object does not get accomplished. The tempo set by the moderator is crucial, especially during startup. Participants look to see the level of seriousness of a meeting by the effort which the moderator or principles are putting into the meeting subject (including the meeting itself). Lack of follow-through is the quickest way to lose the participants.

When the situation is ambiguous, do the right thing

2008-12-23T20:37:00.000-05:00

When the situation is ambiguous, do what's right. This is one of my absolute favorite sayings, because it embodies the basic essence of a leader. First, recognize the situation that you are in. Second, recognize what is right, in the eyes of the customer first, the business and employees second. Then make a decision and act.

There are many ambiguous situations in the business world (and in the world in general). They consist of situations where it is easy to to bury one's head and let an issue roll on by. They consist of issues where you are not given any direction from your boss or employer. They consist of times when extra work is called for, to satisfy a distraught or angry customer. Like Jack Johnson's "Situation Number 3", all too often it is the situation that no one sees.

The right thing to do, on the other hand, is usually clear. Through issue ownership and leadership, the right thing to can be accomplished. Even where the right thing is not clear, any action to address a situation is usually far better than no action. The key is to make a decision and act.

When the situation is ambiguous, do the right thing. A call to leadership is a company.

A Good Meeting - Three elements

2008-09-06T10:44:00.002-04:00

A good meeting is very simple. A good meeting consists of three key elements, rapid information sharing, decision making and planning for decision implementation. The best meeting consists of all three. The last component of a good meeting does not happen in the meeting, and that is implementation and enforcement of the decisions and action plans that result from the meeting.

A good meeting can consist of the subset of elements. An information only meeting can be viewed as either education or opinion-shaping for decision makers.

A decision making meeting, I believe, always has some level of information sharing, if only in review of the current status or knowledge. If decision implementation planning is not accomplished in the meeting, though, clear timeframes for the completion of this critical action is paramount.

A decision implementation meeting can occur, but must be proceeded by the decision making.

We can have further discussion of meeting pace and tempo another time, but the three elements above are crucial to the best of meetings.

2008-07-31T18:53:00.002-04:00

Interesting to see that concentration solar is getting more movement. CNET Article on Cyrium Technologies. My previous post on Sungri.

Frameworking - Quick Solutions

2008-07-31T18:20:00.000-04:00

This is a concept which I apply on a regular basis. Frameworking is an application of the scientific method of hypothesis to business problems. The basic concept is to form a framework solution on a particular problem rapidly, then test the solution against the facts and the situation which exists. As objections or issues are raised against the solution, either the objection is debated and solved or the solution discarded. This needs to be a fairly rapid process, though, so that people use the hypothesis, discussion, discard, new hypothesis as a form of structured brainstorming.

Rapid solutions are the most immediate benefit to this process method. Instead of having an open-ended brainstorming session, then distilling the results, then finding a solution, this technique forces rapid consideration and solution discussion. It is the human equivalent of multi-variate minimization search techniques. Note that this technique is best applied by a team which is well versed in the problem and solution areas being discussed. Normal brainstorming should be used when the space is too large for frameworking or when different solution sets need to be derived.

Two problems exist which must be watched for. A team needs to understand clearly that this method is being used. Frameworking can often look like jumping to conclusions without data, as a person or team rapidly sorts through potential solutions. In addition, the rapid jumping and quick (seemingly harsh) discussion can cause team members pain if they do not understand the process.

The second problem relates to the solutions from frameworking. After a potential solution is reached, the person or team must consider it carefully in view of the situation. Frameworking can allow a team to reside in a suboptimal solution, by removing consideration of crucial factors. When a solution is reached, the team should sit back and consider carefully the solution and the effects is will achieve, to minimize this effect.

Chattanooga Internet Efforts

2008-05-19T19:35:00.003-04:00

An interesting article in the Wall Street Journal today, highlighting, in part, Chattanooga's efforts to improve internet download and upload speed to it's citizens. Cable providers, of course, resist the effort. KNS had that part of the story a month or so ago.

I always find it interesting that companies who, for decades, have reaped profits from local or regional monopolies, then resist when the local government starts to generate efforts at improved services.

Rant aside, I always find this area of commerce, law, monopoly, government, utilities crossover to be fascinating. Add to this the population demographics (highlighted in the WSJ article) of various countries and it makes for very interesting reading (for a data wonk).

The additional focus area of small- to mid-sized cities falling behind and we all need to see internet speeds improved! Unknown applications abound with improved internet speed.

Starbucks v Panera

2008-05-15T18:25:00.002-04:00

I know that piling on Starbucks has become somewhat of an art-form lately, but wanted to add my two cents worth. As I drove from a client site today, I craved coffee and had a few minutes to kill. I thought Starbucks, but immediately thought, "No, Panera's". I analyzed my thoughts and feelings. I like Starbucks coffee better, they have a greater selection, and service is good. It comes down simply to habits created by one factor, free internet access. When I have an hour or more free, but it is inconvenient to return to the office, I always find myself at Panera's. They welcome you simply buying a cup of coffee and going on-line. No one looks at you with laser-eyes; no problems. This has simply created the habit that Panera supersedes Starbucks.

I know that Starbucks made a crucial decision that they did not want people simply sitting and working. They wanted to create an atmosphere of the Italian coffee bar, with friends sharing cups of espresso and talking (and hopefully buying more coffee or leaving). Nevertheless, with this crucial decision, they now find themselves second on the list when I think of a quick place to go.

Delta customer service has degraded

2008-05-13T20:36:00.003-04:00

I know, I know. This is a sad, old story. Nevertheless, I feel compelled to note how far Delta's customer service has fallen, as experienced by this one person. I used to love Delta Air Lines. My skyMiles account was active, my calling experience was good, reservations were easy. My experience today is markedly different.

I admit that I had a problem somewhat out of the norm. I had allowed myself to be bumped on a flight, and obtained a voucher for a future ticket purchase. In the meantime, Delta had instituted a new program called "Pay with Miles", which allowed a person to cash in 10,000 miles for $100 off a ticket. I wanted to book a ticket, use my voucher, pay with miles for $300 worth, then pay the remaining fee with a credit card. I can execute this type of transaction at Krogers (with gift cards and coupons), at gas stations, everywhere.

When I tried to perform this transaction online, no dice. There was nowhere to enter the voucher number. Cancelled transaction attempt 1. I called the 800 number for the skyMiles account and tried again. I was told that I can only use "Pay with Miles" online. I indicated my problem, then I was routed to India for "Online support help". I was told there that I could not execute this type of transaction. I asked to be connected with a supervisor. I was refused point-blank. Cancelled transaction attempt 2. I then called the non-skyMiles account phone number, to make the reservation. I again attempted to make the transactions, and they indicated that they would have to route me to the "Online support help". I refused, then asked to be transferred to a supervisor. Again, a refusal, but more polite. I indicated that I needed to book the ticket, afraid of a fare increase, so only used the voucher and my credit card. At the end of the call, I asked if there was an ombudsman or a number I could call to try to get this issue resolved. Sent online, where no immediate link was available. Failed transaction attempt 3. I had a ticket, now, but it cost $300 more than desired.

I called back today and asked the skyMiles assistant for help again. Again, I was routed to India. This time, though, I got through to an agent who indicated that I could execute the exact transaction which I wanted to execute. I told him, though, that I had already booked the ticket, and wished simply to have $300 credited to my credit card, and the miles subtracted. He indicated, after reported consultation with a supervisor, that I could cancel the existing reservation, but that the voucher had already been used and could not be used on this transaction, even though Delta led me astray. After five more minutes of polite, but firm insistence of this point, though, I got nowhere. Failed transaction attempt 4.

I dislike that several different Delta employees or representatives gave different answers. I dislike that I was actually able to execute the type of transaction, but was refused. I dislike that I had to pay $300 more for a ticket than needed or planned. I dislike the fact that my relationship with Delta has degraded so significantly. I truly hope that they can solve the problem of good customer service and still remain profitable. I do not believe this is impossible.

Rant over. I am not alone, though.....

here, here, here, here, here.....

Managing Opportunities or Problem Areas - Conclusion

2008-05-07T20:58:00.003-04:00

As conclusion of Managing Opportunities or Problem Areas....

Now the steps listed above must be adapted to the situation at hand. Also, I have been accused of being “All carrot, no stick” with the approach above. My reasons for advocating this approach is simply this. First and foremost, it is best for the company and customer. If you are able to implement opportunities or solve problems with the above steps, teamwork is achieved and senior management is put into a position of not having to be involved in decisions that networked managers made. If there is conflict and the issues are resolved and implemented, teamwork is also enhanced. If there is conflict and resolution is not reached, then you (the opportunity promoter) is in the great position of advocating for achieving a positive opportunity. In addition, you are in a position of showing positive action toward goal achievement and you are also in the position of having attempted to resolve the issues prior to executive involvement. Note that the basis for your efforts to reach decisions and implement must be based on the best of intentions with all parties in achievement of the customer’s best interests.

Another key aspect of this approach is that of repetition. The first few attempts to solve problems or approach opportunities will struggle or fail. The willingness to continue to try to solve problems for the customer and company are key. You show your resilience to all involved and this has several aspects. Your peers realize that your fortitude is high and that you will continue to work for the best interests of all. Executive management will realize that your motives are right in the company and customer sense and that you are committed to improving.

Now, realistically, these steps will not work 100% of the time I had a problem which existed between a manufacturing and service group, where an intense study of service failures was required. I was on the manufacturing side. We had good problem identification and worked to plan actions required. Part of our effort required service input and action driven through-out the service organization. Despite the attempt at the above steps, we could not come to resolution nor could we get clear decisions from the conflicting parties on resolution. We had already begun the work on the manufacturing side to study the issue and make changes we felt were appropriate. I also attempted escalation within our existing management structure. No resolution was forthcoming and I made the decision to make the best changes we could, within the confines of the manufacturing group, and try our best to ensure solid customer service. Nevertheless, I still feel we missed an opportunity to have the best solution implemented across all groups.

Always be planning next steps

2008-05-07T20:54:00.002-04:00

As part of the continuing segment on Managing Opportunities or Problem Areas....

The solutions to a problem or opportunity implementation are never linear. I equate the path taken to white water rafting. The river has a great effect on exactly where you are going and you must react continuously with knowledge, experience and effort to keep your craft moving in the right direction without capsizing. There are times where you can pull into an eddy and rest and there are times of vigorous action. Throughout all of this, though is the requirement to plan ahead and adapt to the changing conditions.

When Stymied, escalate with objectivity and data

2008-05-07T20:46:00.007-04:00

As part of the continuing segment on Managing Opportunities or Problem Areas....

Once people realize that you are not shooting them, you just want to solve the problems, they will usually work with you. When they will not, ensure that you maintain your objectivity and escalate with data. A cool presentation, customer focused, will generally break loose resistance.

Work to execute the plan. Take the first steps

2008-05-06T08:11:00.001-04:00

As part of the continuing segment on Managing Opportunities or Problem Areas....

If you have agreement on a plan or can execute the initial steps yourself or within your group, do so. Any actions taken should not be irrevocable, but initiative toward solving the problem shows your bias for appropriate action. Both employees and managers outside your group and senior management will recognize that you are willing to put your time and energy into solving problems for the customer and the company.

Operate outside your circle of influence, objectively and customer-based and company-based. When the good of the customer and company are the lens through which your story, plan and execution are based, the arguments are lessened or melt away.

Updated Cherokee Farms Information

2008-05-06T07:19:00.002-04:00

As an addition to my earlier post, aggregating information on Cherokee Farms, The Knoxville News Sentinel had a very good article on the challenges to the site, here.

Reporting also indicated no timeline on the project.

My original post here.

The Car Wash Factor

2008-05-06T06:09:00.002-04:00

I have a new thought on an metric, to monitor the health of the American consumer discretionary spending, The Car Wash Factor. Related to an earlier post on customer service, I was filling up my car and getting a car wash. The weekend day was absolutely beautiful, with sunny spring skies, 70 degrees, light wind. In the past two springs, the car wash at Wiegels (Ebenezer and Northshore) would have been packed two and three cars deep, waiting for entry into what is not a cheap car wash. There was not another car in site headed to the car wash. It caused me to notice, as I made several errand runs throughout the day, that there were never any cars in the car wash line.

Bernanke and the Federal Reserve can start monitoring car wash spending any day now.......

Customer Service, an example

2008-05-06T06:00:00.000-04:00

I had a real life example of both bad and good customer service, and the psychological difference caused by each example.

At a local filling station (unnamed to protect the guilty) in the Cedar Bluff area, I had a significant purchase to make. I also asked for change for a quick cleaning of my car. The change was not available and the clerk was very surly, as if my expectation of support for their own cleaning equipment was a fault of mine. I was not happy and did not make any of the purchases, nor use their on-site equipment. Total immediate sale lost: >$10. What is worse for this store, though, is that I will not shop there again. Total sales lost: priceless. And I am only one customer.

After my experience, I left the store and drove to the Weigels at Ebenezer and Northshore to purchase the same material and service. I went in, the clerk smiled, change was immediately available. The clerk was pleasant and genuinely friendly and wanted to help. They will now get my business and I am only one customer. Total immediate sale: >$10. Reputation: priceless.

Genuine customer service is basic human kindness and understanding and a willingness to be helpful. It is not hard to expect nor train and the yields are emmense.

P.S. - The clerk at Weigels worked Sunday 5/4 around 2 p.m. I did not catch her name, but she is awesome!

A Realtor's View of Solar Power Systems

2008-05-04T20:51:00.004-04:00

I have been following the All Around KTown blog by Suzy Trotta, a Knoxville area realtor. I asked for her opinion, from a Realtor perspective, on solar power systems and the effects on the home. A very good response was forthcoming (see entire email at the end).

I have pulled a few of the comments out as particularly noteworthy. The first comment is that residential solar power is not prevalent at all. Suzy indicated

"I have personally never helped a client buy or sell a home with solar panels. I would say they are still fairly unique in our area, although I have seen them from time to time. I searched the MLS to see if there are any homes with solar power currently being marketed, and I couldn't find any."

I also think that it is clear that it will take time to have people recognize the value and need for solar power, per Suzy,

I know many people in this area aren't accustomed to solar power and might need some education and/or persuading to see the light - no pun intended :)..........

and

[some other houses] had a few progressive energy saving features. These features, which included a state of the art foam insulation, did nothing to sell the houses, even though buyers were told that they could save up to 40% on their heating and cooling bills. Maybe they didn't believe it, maybe they didn't get it, maybe it was the market, or maybe it was just the houses.....................there was no way to prove those "savings." If you could show people before and after utility bills, that might do the trick.

The last comment from Suzy, which I thought bears a comment, was

At the end of the day a homebuyer in this market is going to look at two things - is it going to cost me anything and what good does it do me? If the answers are "nothing" and "saves you a lot of money," then solar panels are probably a good investment.

The savings potential is clear on solar power (or close at least). The cost, though, needs to be recognized. If a homeowner spends $20K on a solar system, a residual value must be recognized during the sale of the home. I would have a hard time not recovering some of the money directly, not only in the "making a home easier to sell" category.

Thanks to Suzy Trotta for the thoughts and comments! I appreciate it!

--------------------Suzy Trotta's full email (with her permission)---------------------

First of all, let me preface my comments by saying that I don't know that you're asking a "average" Realtor. My thoughts on this topic might be a little left of center. With that in mind...

I have personally never helped a client buy or sell a home with solar panels. I would say they are still fairly unique in our area, although I have seen them from time to time. I searched the MLS to see if there are any homes with solar power currently being marketed, and I couldn't find any. However, in light of the current housing market, as well as the current national economy, I would think that anything a homeowner could do that would both a) make their home stand out from the crowd and b) save the buyer money in the process, would be a good thing.

Having said all that, I know many people in this area aren't accustomed to solar power and might need some education and/or persuading to see the light - no pun intended :) I had some new construction homes listed out in Lenoir City that, although they did not have solar panels, had a few progressive energy saving features. These features, which included a state of the art foam insulation, did nothing to sell the houses, even though buyers were told that they could save up to 40% on their heating and cooling bills. Maybe they didn't believe it, maybe they didn't get it, maybe it was the market, or maybe it was just the houses. Hard to say.

With those new homes, there was no way to prove those "savings." If you could show people before and after utility bills, that might do the trick. At the end of the day a homebuyer in this market is going to look at two things - is it going to cost me anything and what good does it do me? If the answers are "nothing" and "saves you a lot of money," then solar panels are probably a good investment.

I personally think solar panels are a great idea and my husband and I have talked about possibly installing them on top of our humble 60s tri-level some day. That's after we finally get around to getting a new roof :)

I hope this helps answer your question and sorry it took me so long to get around to it!

Suzy

Be willing to listen to a conflicting party

2008-05-02T17:01:00.005-04:00

As part of the continuing segment on Managing Opportunities or Problem Areas....

When problem resolution or change is required, there are often conflicting parties. I truly believe that this will occur less often than most people believe; nevertheless, you will run into people who will not immediately support the needed change or solution.

Listening to the conflictor is crucial, and ideally this is done as part of the planning process, prior to meeting with the senior executive. A story and a plan for solving the problem is very powerful if you have taken the time to work with affected managers and other personnel, in advance, to see if agreement can be reached. Key lessons:

You learn from the other manager or employee the major issues or resistance points.
Ideally, you can both agree to a plan to solve the problem
If agreement is not reached, you have given an honorable notice to the other person that further conversation and conflict on the problem area will occur.

The last point bears further discussion. I have seen in action the “sneak attack” mode of plan presentation. In this scenario, the person with a plan has not discussed this with anyone, except the executive or manager. You are affected and are called in to give your assessment of the “plan”. As you hear the presentation, the plan generally involves major changes to your or your group, with little or no change to the person who is presenting the plan. I do not advocate this method. I believe, as the planner, that it is imperative that you take the burden of discussing the solutions with your peers and try to resolve it first. Then, when presented in a more general meeting, the person who is alerted to the potential conflict will generally respect you more for at least allowing them to prepare. The level of resistance will be far lower and the teamwork of the group increased.

Solar Concentrator News from Sunrgi

2008-04-29T21:07:00.003-04:00

Sunrgi's technology for solar concentrators was touted today in by CNET (via CNET Twitter link for me). Interesting technology that has been rumbling for a while, but no product anouncements. Glad to see product announcements start. I hope that the developments are real and the $.05 per kW-hr are real also. Could be very interesting.

Develop an Action Plan for Opportunity or Problem Solution

2008-04-29T08:56:00.002-04:00

As part of the continuing segment on Managing Opportunities or Problem Areas....

Every manager and executive appreciates a person who has thought through, clearly and concisely, how to proceed with solving the problem. They may not agree with, or desire modifications, to your plan, but having this plan together gives you tremendous credibility.

Characteristics of the action plan should be:

1. Your group or area should be affected. If you develop plans which only have other groups actions involved, your planning will appear self-serving.

2. Your plan should be positive and team-based. Plans which appear to be attack oriented will be much harder to implement.

3. Plans should highlight how they help the customer and company.

4. Plans should have a resolution to the problem, or at least bring clarity to what the final steps should be.

Success through Self-Efficacy

2008-04-29T08:45:00.002-04:00

Entrepreneurial success comes through resiliency, high goals and self-awareness. This is the conclusion of a recent, interesting, WSJ article by Melinda Beck. The concept of self-efficacy, as different from self esteem, is well discussed.

I believe, though, that the article did not tie the need for self-awareness in success as strongly into the theme as needed. Self-awareness is required to truly understand where personal development is needed and what areas are truly possible to tackle, either technically or personally.

Wendy Bounds, in the Independent Street blog article, adds to the article, with a discussion of the addition of faith. Certainly personal and religious faith are a part of all success.

Self-efficacy, self-awareness, faith and some luck are all required for entrepreneurial success.

Summarize data to senior management

2008-04-28T13:32:00.003-04:00

As part of the continuing segment on Managing Opportunities or Problem Areas....

Summarize data to senior management; do not give raw data unless asked.

In developing managers, especially new managers, this is one of the most crucial areas to teach. Senior managers do not have time to process all the data. This is your job; to apply your brainpower to sorting through the data and providing a story which makes sense from the data and from your own intuition. Senior managers, when faced with mounds of data that should have already been processed, will shut down and indicate that further work is needed. Part of telling the story is having pre-processed data which support you, legitimately, in telling the story.

Every opportunity has a story; tell the story

2008-04-25T12:13:00.004-04:00

As part of the prescription on opportunity realization or problem solution...

When an employee or manager is dealing with an opportunity or solving a problem, you need to understand the story. When sharing the problem, with another person or a senior manager, you need to tell this story. The storyline also help you direct this person or manager to the solution which you desire (and feel is best for the customer and company).

The story consists of how the opportunity can enhance the company or customer experience, or how a problem is affecting the customer or company. The foundational underpinnings on generation of the problem or opportunity are also crucial to understand. The path toward resolution is the third component to the story. Knowledge of all three of these areas gives you the confidence that you are on the right path and gives the listener faith in your knowledge and direction.

This skill of story-telling takes practice to develop. Some managers like the entire story, some like a synopsis. Managers like the entire story when

either they have not fully developed the trust and the relationship with you
the decision is crucial to the company
The decision has high political overtones or effects.

The synopsis version is generally asked for, once a manager trusts that you have the drive and skills to dig into the story.

In practical examples, I have executed or seen too much time spent on the “How we got here”, with no action planning. How many meetings have you attended where the entire meeting was focused on the failure of a process or of the company to execute, with no energy spent on understanding why or where to next go. Balancing the opportunity or effects, the understanding of the issues behind, and how to proceed is crucial. Tell the story!

Managing Opportunities or Problem Areas

2008-04-25T11:59:00.012-04:00

I believe there is a general tactical recipe for opportunity or problem solutions, which I am exploring. Most of the thoughts on this are generated from my management and executive work with CTI and Siemens (in a past life), with the attempt to generate the signposts part of current client work. The signposts are:

I want to expand on each of these themes, as developed. Comments and debate welcome!

Cherokee Farms Information

2008-04-25T09:11:00.006-04:00

I have peripherally kept up on the Cherokee Farms development, from News Sentinel reports and through knowing one of the key contributors. there did not seem to be one place for a lot of disparate information, so I collected it here.

Overall the development is a good idea, both for the region and the university. Key caveats in my mind are:

Maintain the beauty of the land
Integrate buildings into the natural settings
Keep the architecture interesting (more below)
Focus on actual results with the research
Truly incubate new businesses for the area.

The main UT website (promo) for the development has good marketing information for an overview. Some details from UT are here.

The latest KNS articles are here (Cherokee Farm Plan in Motion), here (Early Planning Report on the Project) and here (UT Dairy Operation Moving).

The initial press release from October 07.

Map of the area:

View Larger Map

Note that the area under development is to the west of Alcoa Hwy and across from Sequoya Hills.

Raising money for startups/ongoing business

2008-04-25T08:56:00.002-04:00

I thought this a decent post on raising money for startup businesses. I particularly like to see someone emphasize thrift as part of the a new business owner. There are too many times where a person does not control spending on non-essentials, and the business is in trouble.

Article at Lendingclub.

Lessons from the Office

2008-04-10T09:28:00.002-04:00

The Office is a great show, one which my kids are addicted to (I am not sure where that will lead in the future). There area lot of stupid actions taken by all the players, but too many times, there are clear threads related to real life. I saw this article on a Yahoo!Finance page titled "Seven Career Lessons from the Office", and I thought it was interesting.

Of particular note are lessons:

1. Managerial skills may not be what get you promoted.
2. "Boss" shouldn't be confused with "friend."
5. Make the tough decisions about your future.

I like the "promoted just above your level of competency" thought (in lesson 1), and have seen it in real life too often. People are often promoted this way, with the plan for them to grow into the job. Often, though, they are not helped in this endeavor, and often they are not capable of the required growth.

The Boss-Friend issue goes both ways. I have had to deal with that situation personally, when promoted and having to manage peers or long-time work colleagues.

You need to manage your own future. If you are passive, you can derail or find yourself stuck. At times like these, do not be afraid to make the right decision.

Anyway, enjoy the office.

Managing your people is not HR's job

2008-04-09T20:16:00.002-04:00

I had a discussion with a former employee that caused me to flash-back to a former opinion battle. The battle related to the subject of the management of personnel. The person I was in a gentle but heated discussion held the view that HR should take an activist role in the management of the people in his group. Every answer to a personnel management question was "HR should do that....", "HR needs to handle that....", "HR has fallen down again.....".

I hold that the management of the personnel in your group is the direct and whole responsibility of the manager, not HR. HR performs many useful functions in a company, but they have to be viewed as a resource and partner in the management of personnel. The manager is responsible for direct answers to personnel issues, answers to career development, guidance on salary and bonus questions. In short, they are the manager's employees and the manager represents the company in these situations.

There are very clear and positive reasons why the manager should be the key interface here. First and foremost, the manager is the closest person to the employee, from a company authority position. Second, every interaction where the manager can interact with an employee on the sensitive issues, and come out with the best solution possible, is an opportunity to strengthen the relationship with the employee. Third, the employee can get the quickest and most direct responses and not feel put off with "check with HR on that".

I note that there are issues where the HR group needs to be the lead for legal or in-depth knowledge reasons (FMLA, detailed insurance questions, etc.), but when a manager abdicates all responsibility in these areas, the chance for forging a strong and more durable bond with a group is lost.

Interesting Article on Alzheimer's Drug

2008-04-07T21:16:00.002-04:00

Alzheimer's Disease affects millions of people and is the most common of the neuro-dementia diseases. My interest in the disease stems from a past life associated with PET Scanning (as part of Siemens Medical Systems Molecular Imaging group, which bought a local company called CTI Molecular Imaging). While the major use of PET is for Oncology studies, the major growth market for the imaging modality was neurology, specifically for detecting the early onset of Alzheimer's Disease well before the onset of traditionally detectable symptoms.

One of the major hurdles, though, on the adoption of PET for Alzheimer's detection was the treatment regimen that would follow detection. The new drug development paths seem to answers this. One good article is here. It is mostly a financial focus, but gives good summary information.

Interesting take on digital music, at CNET

2008-04-04T19:44:00.004-04:00

I saw this link from the CNET twitter posts, re: digital music. It is about time that the music labels have realized that their industry is/has radically changed. See story at CNET.

If what you are doing is not working, Do Something Different

2008-04-03T13:13:00.003-04:00

This is one of my favorite maxims and I widely used it while a previous group I managed underwent business transformation. I find that most people simply want to execute and when the execution is not achieving the needed goals, they want to simply execute more....harder.....faster.....with different tools.....

I encouraged my employees to take a hard look at how they were attempting to achieve the goals. 9 times out of 10, this simple maxim would cause them to look oddly at me and smile, then bend their back toward making their work processes better.

Solar America Cities

2008-03-30T21:24:00.004-04:00

WBIR reported that Knoxville has been named one of twelve 2008 Solar America Cities. (Thanks to Suzy Trotta for the link.). Interesting list of cities. I would have expected more California cities and at least one city from New Jersey (both states have high subsidies for solar installations). If the goal is to spread solar discipline, though, the cities make sense. Good for Knoxville to have. I truly hope we can achieve implementation of viable solar power generation.

Personally, I believe that the distribution of solar generation, per households, has the most promise. All those empty rooftops call out for power generation capability.

Bobsledding - the new backseat driving

2008-03-30T21:01:00.004-04:00

I heard a great term the other day, which I had never heard, and represents the further evolution of cubical culture. While working with a client, we were referring to the "help" that you can get from others. This sort of help where you time is monopolized by people who simply want to get you to do their work and only their work, and they are going to stay until their work is done. The term was "Bobsledding" and conjures instant images of the two chairs back to front in a cube. I have been both a victim and victimizer of this technique. I thought this was a great term.

When the situation is ambiguous, do the right thing

2008-03-27T19:55:00.002-04:00

"When the situation is ambiguous, do the right thing". On first reading, this phrase is pretty simple, yet the depth of meaning is there. Ambiguous situations exist in all walks of life, and there are plenty of opportunities to use the ambiguity of a situation to take advantage for personal gain of some kind. This is the most onerous of reactions. A second reaction, most commonly practiced, is the passive wait. In this reaction, the person simply waits until the ambiguous situation is resolved or they are "told what to do". I have seen both of these situations in companies which I have been a part and in companies where I have consulted.

This phrase, when practiced, forces a person to confront the ambiguity and also to define what the right thing is. The definition of right most often follows the ethos of God, Family, self in personal settings, or Ethics, customer, co-workers, self in a business setting. Then, the person must act within the confines of these definitions. The right actions within ambiguity and the elimination of ambiguity is one of the best things we can do as leaders, managers and people.

The Secondary Effects of Transformation

2008-03-26T21:08:00.003-04:00

Our company (The Center for Business Transformation) is focused on helping business improve their business processes and transform how they run their business and how they ensure the success of their people. The action of transforming a company is extremely exciting. I have both consulted and been through a transformation at CTI Molecular Imaging (now part of Siemens Medical Systems). One aspect of transformation has always fascinated me, the aspect of secondary effects.

The secondary effects of transformation are exhibited in areas not directly under transformation. Our direct transformation efforts focus on operational improvement, sales improvement, supplier and customer relations and company management development. The effects seen, though, extend throughout all aspects of a company undergoing transformation. I believe the motivation for these secondary effects comes from the fact that, once improvement starts in a company, that the entire company becomes engaged in improvement. The company learns to positively question all aspects of the company and work to excel.

A classic example of this occurred at a client recently. The company in in the midst of transformation, with a focus on operations and business management. Improvement, though, was driven throughout their HR department, as they started asking and answering the right questions out how their HR processes worked. Significant improvement in retention, employee happiness and benefits were realized. The improvement in operations and business management had a lot to do with the improvements in HR, as measured by the employees, but a concerted effort in HR also yielded dramatic improvements.

Solar System Comparisons - A Start

2008-03-25T18:35:00.001-04:00

I spent some time reviewing information on solar power generation systems, last week. I have found it confusing to compare all the different types, so I generated a quick metric which shows the energy generated per size of panel. The additional metric which I would love to add is the cost per watt of the panel. More to follow on this. I know that there are a lot of components to system cost, but these simple metrics allow a quick view into the overall cost estimate.

My blog does not support attachments, so I have added the comma delimited information from the excel file below. Simply cut and paste into notepad, then save. Open with Excel.

,,,,English,,,Metric,,,,,,,,,
Type,PN,Technology,Peak Power (W),H (in.),W (in.),Area (in2),H (cm),W (cm),Area (cm2),Weight per panel,Power,Claimed Efficiency,Power per in2,,Commercial,$4.6 per kW
Sharp Solar 216 W,ND-216U1F,Poly-Crystalline Silicon,216,64.6,39.1,2525.9,,,,,,13.30%,0.085515428,,,
BP Solar,SX 3200 B,,200,,,2179.6,168.0,83.7,14061.6,,,,0.091761962,,,
SunPower,SPR-215-WHT,Monocrystalline Silicon,215,61.39,31.42,1928.9,,,,,,17.30%,0.111464006,,,
Evergreen Solar,Spruce 195,,195,61.8,37.5,2317.5,,,,,,,0.084142395,,,
Kyocera,KD205GX-LP,,205,59.1,39,2304.9,,,,,,16%,0.088940952,,,
GE,,Poly-Crystalline Silicon,200,58.5,38.6,2258.1,,,,,,,0.088570037,,,
NanoSolar,,,,,,,,,,,,,,,,
Uni-Solar,ES-62,,64,49.5,31.25,1546.9,,,,,,,0.041373737,,,

Operation's Role - Support Sales

2008-03-22T14:59:00.005-04:00

As the roles of the various groups within a company are reviewed, we find that all too often, the Operations groups forget their role. Operations, in my definition, consists of procurement, stored, manufacturing and shipping. The core definition of these areas is to obtain, build and ship high quality products on-time, every time. The interface to Sales is the link most conveniently forgotten link, and with this loss come a litany of excuses. "It will cost too much....", "That will take too much inventory....", "We are understaffed to handle that....". The list goes on and on. There are many reasons why company relationships between Sales and Operations is allowed to decline, none of which are acceptable for the long term health of the customer relationship, and ultimately, the long term health of the company performance.

I propose a different relationship be established, one where the goal of operations is to exceed the performance expectations of Sales. In this type of relationship, Sales will ask for the impossible. My automatic answer is not "Yes", but is at least, " We will analze and let you know". After this answer, a real and agressive analysis of operational capability to fulfill the Sales desire must follow. The answer may still be "No", but alternatives can be presented to Sales, which will give them a lot more answers than they would have had originally. You have then turned Sales into the internal engine which is driving improvement in the Operations group. Being willing to be challenged and to work toward solutions is the first step to excellence.

I have personally setup and seen in action such an operations group. Our first response was to find a way to help Sales succeed, instead of saying "No", as a test of Sales resolve. Often the sales opportunity evaporates, yet the strength of the relationship with sales is improved each time an opportunity can be filled. In the end, Sales knows that they can count on the Operations group to do its absolute best to help them and entire company win. The result is far happier customers and far less organizational energy consumed in internal strife.

By no means is the generation of this type of group or relationship easy, but it is worth the effort to implement and the continous effort to maintain. It takes humble but agressive leadership of Operations and understanding in Sales to achieve this level of achievement.

More information on the movement of European Manufacturing to the U.S.

2008-03-12T20:26:00.002-04:00

There is another NPR Article on European manufacturing moving to the U.S. both large and small companies are reviewing it, according to the article (BMW being the large company). Interesting in that this seems to be a trend that NPR is following (ok, ok, two data points do not necessarily make a trend). Will keep my eyes open for more articles and news.

My Original blog posting.

Interesting Post on Trust, by Steve Rubel

2008-03-08T19:15:00.002-05:00

Through a twitter, Steve Rubel linked into his post on trust. Thought is was of general interest. His approach is toward data integrity in digital business startups, but the concept holds for all business.

Knox County P-card Situation

2008-02-29T15:45:00.002-05:00

In general, I use this blog for business and technology topics of interest to me (and I hope others). There is an issue, though, in our local Knox county government, which needs comment. Exposure, through internal auditing and newspaper exposure, show a distinct lack of controls and a lack of common sense operating in the use of purchasing credit cards (labeled P-cards).

The lack of controls seems symptomatic of a failure in leadership. By example, Ragsdale showed the members of the county government how to act, and therefore could not follow rules diligently. The best you can say is that he was not hypocritical wrt to the rules, but this does not excuse the use of funds for personal enrichment with the hope at not being caught.

Common sense and a lack of personal integrity are at stake as well. The assumption that these funds are present and available for use in personal expenses is appalling. This type of behavior in a business leads at least to disciplinary action, if not outright termination. Any repeat is grounds for immediate termination. It will be very interesting to see if the county acts as a business in this regard. This is not a case of a few missing receipts, but willful disregard for the existing rules for the P-cards and clear disregard for the public money.

I applaud the internal auditor and encourage the county to act correctly and swiftly with discipline and repayment.

Potential European manufacturing move to U.S.

2008-02-29T11:14:00.004-05:00

The dollar is falling with respect to the Euro. No news flash there. One aspect of this situation bears consideration, though. With the fall of the dollar, labor and services is lower cost, with respect to the European costs. This means that, for consumption in the U.S. market, European labor is not competitive, leading a natural analysis of production in the U.S. for the U.S. market.

Some indication of these analyses are starting to appear. An NPR article this morning had a short mention of this at the end of the article. You have to listen to the radio announcement, though, because the written form does not have this indication. Could present interesting business opportunities.

Teamwork vs. Autocratic Management

2008-02-25T21:06:00.002-05:00

This post could be the subject of an entire book. Saw an example of exactly what this means, at a client's site. When your team is present and participating in the decision making, even among a group of strong willed people, the implementation strength of a given decision is huge. When an autocratic leader hands given decisions to a team, the implementation strength is low and the potential for consistent passive resistance or less-than-active drive is large.

The concept of implementation strength is huge. This does not mean that a strong leader does not have a good idea of where things are going. It does mean, though, that the leader asks about the concept, accepts changes when team members suggest them and helps the entire team come to the realization that the direction is best. This is true leadership strength.

Solar Subsidies in Tennessee

2008-02-21T21:25:00.002-05:00

Solar power seems to be charged, in part, by subsidies at the state level. California and New Jersey (interestingly enough) are leading in this aspect.

A quick check for Tennessee shows absolutely no subsidy at the state level. TVA has a program, the "Green Power Switch" program which offers a $500 rebate and a guarantee of $0.15 per kWhr for any EXCESS power produced and put onto the grid. This price is a little more than double the average price for power in the Tennessee Valley currently and is set for at least 10 years. One thing to note is that the homeowner forfeits the rights to the carbon credits to TVA. Wonder what they are using that for.....

In addition, there was information on the TVA site which indicated that the $2000 tax credit ran through 2008, but I thought this had been eliminated as part of the latest energy bill in Congress. More research to follow.

Monitoring Organizational Health

2008-02-21T11:49:00.002-05:00

Thoughts on two aspects of organizational health. The first is triggered by an article that a colleague pointed out to me, from the Automotive News magazine, where Ford is working to repair damaged supplier relationships. It relates to external organizational health with the lesson that monitoring and maintaining healthy external relationships is key. The level of effort to maintain a healthy relationship is far less than the level of effort to correct or recover a damaged relationship. In addition, the relationships most likely have a direct bottom line impact in the willingness of the supplier to work with an organization, in quality and in cost controls and cost savings sharing.

The same equation goes toward the internal organizational health. When the organization health with employees is allow to deteriorate, through apathy or downright bad management, the level of effort to recover is huge and takes signification time to complete. The efficiency, idea-generation and willingness of the employees to help the company succeed goes down dramatically.

The key lesson is, of course, monitor the organizational health of your company, both internal and external. It still boggles my mind at how many companies do not take into account these factors when managing their business and then spend an inordinate amount of time and resources correcting situations which should have never been allowed to occur.

Private Speech

2008-02-21T08:14:00.004-05:00

There was an interesting article on NPR this morning, relating imaginative play and executive function development in children. The gist of the article related to declining executive function due to the increase in structural play for children. One concept of the article caught my ear, the concept of private speech. I have always wondered about the function of the "voice in your head", and always thought it a little odd on my part. I have conversations with myself related to problem solving, planning for contentious meetings, rehearsing speeches, etc. This voice or private speech can be the greatest critic, but helps you think clearly through problems and issues yourself.

In relation to the NPR article, I also believe that, in adults as opposed to children, the lack of free time or down time creates a void in the ability for this private speech to be heard. My own experience is that this private speech is best heard when there is a length of time to hear it. A chance to debrief and detox from a meeting or tough day is essential to letting this voice help sort through all the issues and develop plans for success. The lack of time to do this leads to stress, less effective sleep and less effective solutions.

A Neat Experiment in Zero Energy

2008-02-14T20:02:00.002-05:00

I saw an advertisement in the Wall Street Journal for an effort by BASF to build a zero energy house, in Patterson, NJ. I followed up on the web and found the site interesting and well organized. Some technical information on the site, though more details could have been included.

(Not so) Strangely missing was the cost data for the house. It would be interesting to review the economics of the house in terms of payback for the installation of the metal roof, solar systems, high spec HVAC, etc.

On the solar electricity generation, the site uses thin-film solar panels, from attached directly to the metal roof (one of BASF's key contributions). The solar panels are supplied by United Solar Ovonic.

Looks like an interesting effort, though I would like more technical details.

Do something different

2008-02-13T22:06:00.002-05:00

I had an interesting discussion, related to work effort and getting stuck in the familiar patterns of work life. There are many times when the first and only answer to a problem is to work harder; to keep exercising the same methods to get out of a bad situation.

Fundamentally, in a business setting, I believe this comes from fear of failure. The willingness to take risks and accept failure is not built into most people's psychology, even risks which are not of a huge in nature. In addition, there are cultural barriers built into most companies which punish all failures. The option of failure as a course of learning is not available.

There comes a time when you have to Do Something Different. Doing something in different ways at least gives an opportunity to try to solve the problems in a new way. There is a chance of failure, which should be mitigated as far as possible through good team oriented thinking and planning. Nevertheless, the risk of failure will be there. We have to take the risk and try something different. In most people and most business cultures, this is not an easy thing to do.

The gist of the discussion which triggered this entry in the blog was centered around (convincing to try) taking a different route. More later in the success of the attempt.......

Continued success of continuous improvement

2008-02-11T11:28:00.000-05:00

I received an email update today on one of the key projects undertaken at my previous company. The team has continued to drive success through continuous improvement despite some hurdles in the new environment. The cultural change of improvement is embedded deeply and it is heartening to see the team drive projects to completion. Once you have truly created this culture, the persistence of the culture and teamwork is high. To the operations team, keep up the good work!

Positive Dissatisfaction

2008-02-10T14:10:00.001-05:00

A couple of articles recently triggered the writing of these thoughts. First, a Yahoo article on moderate happiness driving wealth. The second was a thread on a local blog by Helen Smith.

Both the original article and the follow up thread discuss the concepts that most successful people are not "always happy". As applied to business (and particularly change processes), I have always felt that the concept of a mostly optimistic person is the most successful. I call this Positive Dissatisfaction.

Positive Dissatisfaction is the balance between optimism and recognition of the need to improve. The optimism is required in a business to attract and retain driven personal. Most successful people want to work in an environment where they are appreciated and where the environment has high energy and a sense of purpose. These are all components of, or enhanced by, a strong optimistic leader. Optimism and positivity is also required for generating and maintaining personal relationships and a strong network of peers within an organization. People are attracted to people who are positive and get things done.

The dissatisfaction comes into play as a stimulus, at a personal and business level, for driving change and improvement. This stimulus is required to help a person or a group continue to strive to improve. The stimulus is the voice in the back of a person's mind constantly say "There is a better way......"

The coupling of the optimism with the right level of dissatisfaction is Positive Dissatisfaction. With absolutely no science whatsoever, I have always felt that being "80%" optimistic is the right level. This is the mostly optimistic person, who still retains a foot in reality. This is the leader who can attract and reward a team, yet still hold firm accountability to goals and objectives. This is the right level to help people drive to succeed and drive to improve, in parallel.

Comments welcome.

Solar costs and availability

2008-02-10T13:52:00.000-05:00

I recently read an interesting article in IEEE Spectrum, covering the payback time for production costs of solar technology (http://tinyurl.com/2rcpy8). Interesting (and natural when you think about is) is the payback varies by energy intensity. For the Knoxville area, we have (according to the article) 3.0 - 3.9 kwh/sq.m/day. With an estimated 33% efficiency (very high, I know, but do not flame me - it made the math easier), there is 1 - 1.3 kwh/sq.m/day available from a solar system.

I do not have cost data, but wonder if the Nanosolar and other technologies can approach solar cost effectivity for those areas outside California/Arizona/Texas. Some cost analysis is called for (to come).

The Change Process Tipping Point

2008-02-08T19:50:00.001-05:00

The Change Process in a company or organization still fascinates me. You struggle, and struggle and struggle and then suddenly the path forward seems to ease and change rolls forward. Keeping the energy high enough to struggle through this tipping point is the challenge.

We worked with a client all this week. In the middle of the week, things seemed grim and the struggle was hard. Then, upon arriving this morning, the mood was remarkably different. Energy was up; the team saw the end of the tough week and worked hard to close this workshop out. Then, the report out to the senior executive staff was extraordinary and left the entire team, pumped up. The team's willingness to stick throughout the process and fight through to the end made it all worthwhile. I wonder whether this tipping point is a crux in all personal and organizational change processes.

Internet tools increase human connectedness

2008-02-01T13:47:00.000-05:00

A big fear with the internet is the computer interface removing people from human intteraction. Thanks to an internet connection to Jack Lail (Knoxville News Sentinel), I have exercised new internet tools and interactions between the tools. I now know that these tools actually increase the connectedness of people. I am late to the game, here, but as a forty-something father of five, I finally get it.

The first is LinkedIn. I have been a member and connector for over a year, but did not really realize the value until I had left my previous job with Siemens Medical in Knoxville. LinkedIn helps me keep up with people and their moves.

The primary one which Jack's blog introduced me to is Twitter and it's association with blogging. Twitter as a tool is interesting, but I am still playing with it. The way Jack uses it most is through a headlining type service for blog entries, which is cool. You can get updates via RSS feeds, etc., but the quick Twitter link is a simple way to get a view into what his blog contains. Read his blog entries on Twitter impact on elections and breaking news.

I have noticed, through using these tools, that the tool usage has deepened my interest in people. The tool usage has stimulated a deeper understanding of human connectedness and stimulated a greater desire for interesting interaction with people. As a geeky engineer at heart, this is an interesting personal revelation.

First Post to Ken's Business Musings

2008-01-31T14:09:00.000-05:00

This first post is a test to review look and feel