Main

November 28, 2011

Op-Ed Brooks on Drucker - and Decision Making

www.mixnerstrategy.com

David Brooks is well-known as an Op Ed writer for the New York Times. He breaks his normal form by writing about psychology and the development of the human brain in a book that almost feels like fiction, which, in a way, because it applies physical, biological and psychological attributes to fictional characters, it is.  The book works because the science flows out almost effortlessly in a descriptive manner that turns the normal self-help book on its head by not only telling you what you should do, but why. Since I've been working a lot on Drucker lately, I'll quote Brooks quoting Drucker (Brooks, 254):

The great business sage Peter Drucker said that about a third of the business decisions he observed turned out to have been right, another third turned out to be minimally effective, and another third were outright failures. In other words, there is a least a two-thirds chance that what we have done is wrong or largely wrong. We believe this is great, because we want to believe we are great. We want to preserve our own egos, so we're spinning ourselves. But the truth is life is about producing failure. We only progress through a series of regulated errors. Every move is a partial failure to be corrected by the next one. Think of it as walking. You shift your weight off balance with every step, and then you throw your other leg forward to compensate.

A way to make sure you are compensating properly? When you make a major decision, write up a one-pager describing your decision making process and the action you took. Revisit it in nine months to see how you did, what you can learn from it, and what changes need to be made now (Brooks, 259).

Ray Kurzweil, in his descriptions on computer efficiency and the likelihood of computers mimicing human brains, claims, basically, that the time when a computer works as well at decision making as a human brain is fast approaching. Brooks takes only a paragraph to debunk that hope. In describing the growth of a child, he describes a young boy running around the room, and, then, landing in his mom's lap, yelling during all this, "I'm a helicopter! I'm a helicopter!" Brooks knows, as we know, as well, that no computer can even fathom the processes that a five-year-old has gone through we he declares "I'm a helicopter!" Yes, computers are great. No, they're not ready to take over the world, a comforting thought.

Reference

Brooks, David. The Social Animal. The hidden sources of love, character, and achievement. Random House. 2011.

Kurzweil, Ray. The Singularity is Near. Viking. 2005.

August 30, 2011

Great Britain, United States - and China

www.mixnerstrategy.com

Great Britain 

Winston Churchill became Prime Minister at a time when his leadership skills were direly needed by the British government. Hitler was about to dominate the continent with a lightning fast warfare that no country had yet been able to hold at bay. In order to survive, someone needed to lead while providing an image of certainty that would inspire the whole country not only to survive, but dominate a clearly superior force intent on winning. Churchill's War Lab could be about all the inventions that flowed from British science during the war years. My first thoughts were that the book would list them all out and work through all the technologies on-by-one. Radar. Aircraft. Ships. Communications. The bomb. Operations research. They all came out of British labs in the early forties. War Lab didn't even try to explain things scientifically. It was all about leadership. Aggression was part of it. If the British were to win, their leaders had to focus on aggressively attacking the Germans. They had to get there first time after time. The first step entailed micromanaging. Churchill had experience in all the facets of governance in Britain. Since, in a way, he knew more, he trusted his intuition and started directing in all sorts of minute and grand ways. How many bombs arrived at such and such a port today? Move them out to the troops. Now. How many troops are available for re-assignment to Northern Africa - today? Move them there. Now. So direction was a big part of it. Maybe even micromanaging. Attracting the best scientists around him was another step. His dinner parties on weekends at his country estate might have the best scientists sitting next to the leading generals, discussing what to do next and how to do it, and, then, doing it Monday morning because Churchill directed it so. He visited the troops, on the front lines repeatedly. He visited the leaders in their capitals repeatedly. Face-to-face was better than a personal letter was better than a typed letter was better than a telegram, although he used all those methods. Amazing story.

America

Jacqueline Kennedy Onassis wasn't an elected leader certainly, in fact her portfolio was limited to the White House and the tasks of being the First Lady. We all know it wasn't so simple. I'd forgotten about all the crowds abroad and in, say, Louisiana, who shouted, "Jackie! Jackie! Jackie!" over and over. But that happened, even early on in the Kennedy years. She re-decorated the White House in a politically tense environment. Big deal, no, not really, when you contrast it to Jack Kennedy facing down the Russians over Cuba. The tone, however, showed through. This is an important place. Important things happen here. It deserves respect. Lastly, we forget about Jackie's last years in the publishing world. She obviously could have just sat back and waited for people to come to her, or, more likely, lived behind a wall. She didn't. She used all her contacts, all her skills, to bring some seventy or more books to market, some of them best sellers from the best authors. She used her rolodex, yes. She also used her sense of style and all her learning to make sure the books she chose to support were the right books, that they were well written, obviously, and more, that they were presented as art pieces in themselves, something easily forgotten. Quite a lady.

China

Now, a new face, Jianying Zha. Lucky enough to get into Peking University shortly after the Cultural Revolution ended in China, she could have taken a nice job somewhere in China and lived an easier life. She chose instead to come to America for more schooling, to South Carolina of all places, and then on to New York City. We're lucky she was here. Bright. Focused. Open. Lots of adjectives apply. One of them, the ability to listen, if probably very important, as is her skill at forcing what she hears onto the printed page. She ended up with best sellers in Chinese for the Chinese market, and, hopefully, with best sellers in English for our markets. She doesn't interview folks we've heard of before. A retailer who grows a market, and then sells at the opportune time. A printer who comes to America for a start but who returns home to challenges the publishing world at home to allow things that might not have happened before. Two of the biggest real estate developers in China today who got their start with aggression on a small scale, and who then had the nerve to grow things into the big scale using not only business skills, but artistic ones, as well. Finally, Zha takes through the politics of the Chinese University as it figures out how to become not only big, but world class. The first step? Admit, basically, that being big doesn't necessarily mean world class, and that, yes, there are wonderful scholars in China while at the same time recruiting competitively around the world. We've seen all this before. China is reliving the process now, but at a pace unseen before.

References

Downing, Taylor. Churchill's War Lab. Code-breakers, scientists, and the mavericks Churchill led to victory. The Overlook Press. 2011.  

Flaherty, Tina Santi. What Jackie Taught Us. Lessons from the remarkable life of Jacqueline Kennedy Onassis. Perigee. 2004.

Zha, Jianying. Tide Players. The movers and shakers of a rising China. The New Press. 2011.

August 28, 2011

On My Desk

www.mixnerstrategy.com

References

Anderson, Chris. Free. The future of a radical price. Hyperion. 2009.

Bauby, Jean-Dominique. The Diving Bell and the Butterfly. A Memoir of Life in Death. Vintage Books. 1998.

Brooks, David. The Social Animal. The hidden sources of love, character, and achievement. Random House. 2011.

Buckingham, Marcus. Standout. The Groundbreaking New Strengths Assessment from the Leader of the Strengths Revolution. Thomas Nelson. 2011.

Bush, George W. Decision Points. Crown Publishers. 2010.

Churchill, Winston S. Never Give In! The Best of Churchill's Speeches. Hyperion. 2003.

Daughn, George C. 1812. The Navy's War. Basic Books. 2011. 

Di Silvestro, Roger L. Theodore Roosevelt in the Badlands. A young politician's quest for recovery in the American west. Walker & Company. 2011.

A definitive account of Roosevelt's time in the west as rancher, cowboy, conservationist and adventurer. Always sickly, Roosevelt used physical challenges to regain his health after his wife's and his mother's deaths. Over time, he probably didn't make much money at ranching. The health and vigor he regained, however, helped him regain elective office as Vice President and then President after McKinley's assassination. In a way, the stories related in Di Silvestro's book make for better reading than a cheap cowboy novel, as they're true - and, sometimes, sad. Arriving in the west just after the demise of the buffalo, Roosevelt killed way too much game, more than he could ever eat. He took the racks on the best examples, and maybe a prime cut of meat, and left the rest. That was life on the range in the 1880s.

Downing, Taylor. Churchill's War Lab. Code-breakers, scientists, and the mavericks Churchill let to victory. The Overlook Press. 2011.  

Felton, Eric. Loyalty. A Vexing Virtue. Simon & Schuster. 2011.

Ferling, John. Independence. The struggle to set America free. Bloomsbury Press. 2011.

Those of us who write a bit are always hoping to effect people by what we write. The one pamphlet that in fact effected the future course of America was Thomas Paine's Common Sense. The King has just said he meant to punish the colonies for their actions (Ferling, 217). Paine made it clear that reconciliation was not in the cards. His pamphlet changed history.

Flaherty, Tina Santi. What Jackie Taught Us. Lessons from the remarkable life of Jacqueline Kennedy Onassis. Perigee. 2004.

Gaddis, John Lewis. George F. Kennan. An American Life. The Penguin Press. 2011.

Gawande, Atul. The Checklist Manifesto. How to get things right. Metropolitan Books. 2009.

Gill, Michael Gates. How Starbucks Saved My Life. A son of privilege learns to line like everyone else. Gotham Books. 2007.

Grant, U. S. Personal Memoirs of U. S. Grant. Konecky & Konecky. 1886. 

Hill, Linda A. and Kent Lineback. Being the Boss. The 3 imperatives for becoming a great leader. Harvard Business Review Press. 2011.

Humes, Edward. Force of Nature. The unlikely story of Wal-Mart's green revolution. Harper Business. 2011.

Jones, Steve. The Darwin Archipelago. Yale University Press. 2011.

Lewis, Michael. Moneyball. The Art of Winning an Unfair Game. W. W. Norton & Company. 2004.

Levine, Robert. Free Ride. How digitial parasites are destroying the culture business, and how the culture business can fight back. Doubleday. 2011.

Levinson, Marc. The Great A&P and the Strugle for Small Business in America. Hill and Wang. 2011.

Lohr, Steve. Reaping the Rewards of Risk-taking. New York Times. 27 August 2011. http://www.nytimes.com/2011/08/28/technology/steve-jobs-and-the-rewards-of-risk-taking.html?hpw

Lowenstein, Roger. The Nixon Shock. Bloomberg Businessweek. 8-14 August 2011. 74-78. http://www.businessweek.com/magazine/the-nixon-shock-08042011.html

Mackay, Harvey. The Mackay MBA of Selling in the Real World. Portfolio / Penguin. 2011. 

Mandal, Jay. LawPivot. A Q&A website that matches cash-sensitive startups with the lawyers who might be able to help them.  https://www.lawpivot.com/

Marcello, Simonetta and Norga Arikha. Napoleon and the Rebel. A Story of Brotherhood, Passion, and Power. Palgrave Macmillan. 2011.

Meyers, Christopher C. Junion General John A. McClernand and the Politics of Command. McFarland & Company, Inc. Publishers. 2010.

Morrell, Margot. Reagan's Journey. Lessons from a remarkable career. Threshold Editions. 2011.

O'Brian, Patrick. Master and Commander.  W. W. Norton & Company. 1970.

Ranadive, Vivek and Kevin Maney. The Two-Second Advantage. How we succeed by anticipating the future-just enough. Crown Business. 2011.

Ries, Eric. The Lean Start-up. 2011. http://theleanstartup.com/

Sorkin, Michael. All Over the Map. Writing on Buildings and Cities. Verso. 2011.

Stalk, George Jr. and Thomas M. Hout. Competing Against Time. How time-based competition is reshaping global markets. The Free Press. 1990.

Taleb, Nassim Nicholas. The Black Swan. The Impact of the Highly Improbable. Random House. 2007.

Thomas, Hugh. The Golden Empire. Spain, Charles V, and the Creation of America. Random House. 2010.

Trout, Jack, with Steve Rivkin. The Power of Simplicity.  McGraw-Hill. 1999.

Watts, Duncan J. Everything is Obvious*. *Once you know the answer. Crown Business. 2011.

Watts makes a case that wasn't obvious at first: things are never as simple as they seem. Quants of all sorts have always been convinced that analysis of problems will yield simple - and quick - results. He

Wills, Garry. Verdi's Shakespeare. Men of the Theatre. Viking. 2011.  

Zha, Jianying. Tide Players. The movers and shakers of a rising China. The New Press. 2011.

August 26, 2011

Machiavelli's Sensibilities

www.mixnerstrategy.com

Here's Erasmus in 1516, writing to Charles I of Spain, soon to be Holy Roman emperor Charles V (Unger, 221, quoting Erasmus's Education of a Christian Prince, 1516):

Wisdom is not only an extraordinary attribute in itself, Charles, most bountiful of princes, but according to Aristotle no form of wisdom is greater than that which teaches a prince how to rule beneficently.

Machiavelli, conceiving of a world "filled with violence, subject to sudden, inexplicable transformations" (Unger, 223-224), says "All human affairs are in a state of flux," forcing the prince to continually adjust" his actions. Unger goes on (Unger, 224):

To Thomas Aquinas, who wrote in his Commentary on Politics "No one can be called a good prince unless he is good in the moral virtues and prudent," Machiavell might well have responded: No one can be considered a good prince, or any prince at all, who loses his kingdom through a foolish adherence to such platitutes. The very notion of a fixed morality is preposterous in a lawless world.

Unger understands that Machiavelli has just left thirteen years of dealing with esentially ruthless, successful leaders. Erasmus and he take two points of view. One says do the right thing. Always. The other says do what gets you the result you need. Always.  It may be that Erasmus is correct. Machiavelli's suggestions, however, probably will get you the results you need. Two different things.

Reference

Unger, Miles J. Machiavelli. A Biography. Simon & Schuster. 2011.

August 01, 2011

Treasures in Reagan's Desk

www.mixnerstrategy.com

When a president and his family move out of the White House, things move pretty quickly. While the old president accompanies the new president to the inauguration, one set of possessions is replaced by another - in record time. Reagan's desk in the Oval Office was emptied into a box and labeled "RR's desk" (Reagan, xiii). It wasn't seen until years later - maybe twenty years later - when the Reagan library was redecorating and folks decided to look at what was in storage. Behold. The box. This wasn't just any box, it was a hand written archive of Reagan's thoughts, quotes, anecdotes and jokes, all in Reagan's own handwriting, each written on its own card. Take a stack of cards and, if you have Reagan's skill at talking to people, you have a ready made speech. The stack of cards? Well, it came from years of speeches, some of them probably back in Hollywood, some of them from the General Electric speechifying days, and, some of them from Reagan's campaigns and offices in California and in the White House. A speech writer would make up a speech. Reagan would fix it up with a proven one liner (or maybe a bit longer) from his trove of quotes and stories and jokes.

Here are three of them:

  • Greatness is measured by your kindness, your ed. & intellect. By your modesty. Your ignorance is betrayed by your suspicions & prejudices-your real caliber is measure by the consideration and thoughtfulness you have for others (Reagan, 142).
  • A state which dwarfs its men in order that they may be more docile instruments in its hands-even for beneficial purposes-will find that with small men no great thing can really be accomplished (Reagan, 36).
  • There are 3 kinds of lies: lies, d--m lies, & statistics (Reagan, 189).

The Reagan Foundation ended up owning the collection of cards. They've put out a book. Somehow, the cards need a better place. The book is nice. The cards are nice. They need to have a larger place in American history. My bet is that, ultimately, they will.

Reference

Reagan, Ronald. Edited by Douglas Brinkley. The Notes. Ronald Reagan's Private Collection of Stories and Wisdom. Harper. 2011.

June 30, 2011

Michael Phelps Strategy

www.mixnerstrategy.com

Michael Phelps - deserve ably - got a lot of press after the Beijing Olympics.  His first Olympic gold medal wasn't in Beijing. It was in Athens, four years earlier. The story of that win forms the first chapter of Phelps' obligatory book after all the medals in China.

There's one quote that sticks in my mind, from his father when Michael was seven (Phelps, 22):

If I was playing sports, no matter what it was, my father's direction was simple: Go hard and, remember, good guys finish second. That didn't mean that you were supposed to be a jerk, but it did mean that you were there to compete as hard as you could. The time to be friends was after the race; during it, the idea was to win.

The quote comes from Phelps' description of his first win (of six golds and two bronzes) in Athens, the Games before Beijing, when he won the 400 meter individual medley; four strokes, the equivalent of the swimming decathlon. Through Phelps' whole story, that paragraph proves crucial. Work hard, absolutely. Win when it mattered, too.

Reference

Phelps, Michael with Alan Abrahamson. No Limits. The Will to Succeed. Free Press. 2008.

June 29, 2011

Don't Tell Anyone

www.mixnerstrategy.com

I have favorite places that I always think about with these few words, "Don't tell anybody." They're favorite places I like to visit because they're beautiful in their own right, or they're pretty free of traffic or crowds. The 395 north from Victorville to, say, Reno, might qualify over much of its distance. My skiing friends will know all about the 395 because Mammouth is along the way. So will Sierra backpackers.

I sometimes have books like that, as well. "Don't tell anybody," I think, "these are special, just for me." Michael Lewis's book Coach is like that. I like all of Lewis's books, but this one is extra special. It's easy to carry around. You can read it in one session.

Coach is about Lewis's coach in high school. A hard ass kind of guy, Coach made sure that everyone on his teams understood why it was important to work hard. As times went on, Coach's environment changed what with domineering and protective parents butting in every time Coach intimidated little Jimmy. The last time I read Coach, I found some lines that are worth sharing. Having read them, you might decide to get the book for yourself:

I never had any great sense of what Fitz made of the world outside his baseball program. Not much, I'd guess. He was running an organization that, like the Franciscan order or the Marine Corps, depended on a more difficult system of values than that of the greater society.

In a similar manner, we find ourselves in organizations with different value systems. That's what makes them successful.

Reference

Lewis, Michael. Coach. Lessons on the Game of Life. W. W. Norton & Company. 2005.

On My Desk Today

www.mixnerstrategy.com

Bennis, Warren G. and Robert J. Thomas. Geeks & Geezers. How Era, Values, and Defining Moments Shape Leaders. Harvard Business School Press. 2002.

Dickinson, Boonsri. Power Struggle. Ivanpah Solar Electric Generating System. Wired. July 2011.

L'Amour, Louis. Taggart. Bantam Book. 1959.

Lewis, Michael. Coach. Lessons on the Game of Life. W. W. Norton & Company. 2005.

Mead, Russel. The Tea Party and American Foreign Policy. What Populism Means for Globalism. Foreign Affairs. March/April 2011. 29.

Palermo, Richard C. Do The Right Things... Right. A Step-By-Step Guide to World-Class Performace. The Strategic Triangle, Inc. 2003.

Parinello, Anthony. Selling to VITO the Very Important Top Officer. Adams Media Corporation. 1999.

Paul, Alan. Big In China. My unlikely adventures raising a family, playing the blues, and becoming a star in Beijing. Harper. 2011.

Phelps, Michael with Alan Abrahamson. No Limits. The Will to Succeed. Free Press. 2008.

Prahalad, C. K. The Fortune at the Bottom of the Pyramid: Eradicating Pvoerty Through Profits. Pearson Education. 2010.

Prud'homme, Alex. The Ripple Effect. The Fate of Freshwater in the Twenty-first Century. Scribner. 2011.

Reagan, Ronald. Edited by Douglas Brinkley. The Notes. Ronald Reagan's Private Collection of Stories and Wisdom. Harper. 2011.

Rich, Stanley R. and David E. Gumpert. Business Plans That Win $$$. Lessons From the MIT Enterprise Forum. Perrenial Library. 1985.

Schumpeter. The Bottom of the Pyramid. The Economist. 25 June 2011. 80.

Stack, Jack with Bo Burlingham. The Great Game of Business. Currency Doubleday. 1992.

Tanz, Jason. A Thousand Points of Infrared Light. Kinect Xbox. Wired. July 2011. 114.

Goetz, Thomas. The Feedback Loop. How Technology has turned an age-old concept into an exciting new strategy for changing human befavior.  Wired. July 2011. 126.

June 22, 2011

Warren Bennis

www.mixnerstrategy.com

Two things on Bennis's new book:

  • His first book (of forty or so) was entitled Planning for Change. It was published in 1961.
  • Proximity is important. Bennis's advice to Colin Powell when he was Secretary of State was to move into the White House, or at least have an office there. Powell didn't do it. The result was that he was the one who had to justify Iraq to a sceptical congress. No one ever really trusted him again.  I'll repeat that advice again. Proximity is important. If you are not close to your teams as they strategize on new strategies and then carry things out, you are much less likely to create successful strategies. Do you have to do everything? No. Does it pay to be close by? Yes.

Reference

Bennis, Warren. Still Surprised. A Memoir of a Life in Leadership. Jossey-Bass. 2010.

May 18, 2011

Vetting the Media

www.mixnerstrategy.com

We used to read newspapers and watch the 7:00 news shows. Not any longer. Since we're getting our news from all sorts of sources, here are some questions to ask yourself about your news source of choice (Kovach, 32):

  1. What kind of content am I encountering?
  2. Is the information complete; and if not, what is missing?
  3. Who or what are the sources, and why should I believe them?
  4. What evidence is presented, and how was it tested or vetted?
  5. What might be an alternative explanation or understanding?
  6. Am I learning what I need to? 

When I realized that all the politicians and newspapers nationwide were reading the early editions of the New York Times to decide what stories they needed to spin that day, I started reading the NYT religiously. Things are shifting since the NYT has started charging for its site (although that charging seems to pretty non-intrusive, even for this pretty heavy user). I've been pausing a bit to decide whether I'll pay the Times for their content or trust other sites to give me "good enough" news. That list, above, will be part of the test process I use as I look at new sites and sources. The news business is in the midst of disruption. What to do is an interesting question.

Reference

Kovach, Bill and Tom Rosenstiel. Blur: how to know what’s true in the age of information overload. Bloomsbury USA. 2010.

March 30, 2011

Soka Education

www.mixnerstrategy.com

Ikeda on the Soka brand of education (Ikeda, 127):

Soka is Japanese for "value creation." "The only value in the true sense is that of life itself. All other values arise solely within the context of interaction with life." ...The fundamental criterion for value ... is whether something adds to or detracts from, advances or hinders, the human condition.

The ultimate goal of Soka, or value-creating, education is to foster people of character who continuously strive for the greatest good - that of peace - who are committed to protecting the sanctity of life and who are capable of creating value under even the most difficult circumstances. 

Only a human being can foster another human being. It takes a truly humanistic person to raise a truly humanistic person. Schoolteachers and others dedicated to developing people carry out a task of immeasurable value. The effects of this task will last forever (Ikeda, 213).

Reference

Ikeda, Daisaku. Soka Education. For the Happiness of the Individual. Middleway Press. 2010.

March 27, 2011

Bear Football

www.mixnerstrategy.com

College football has an opportunity to return to football the way it was in the fifties. It won't because the draw of the NFL is too large for universities and players alike. There's too much money involved. Bear Bryant liked it the old way, when there were smaller teams and smaller players. He didn't miss the segregation of football, especially Alabama football. And, yes, he did want to win. From his wallet (Barra, 503):

This is the beginning of a new day.

God has given me this day to use as I will.

I can waste it or use it for good.

What I do today is very important

because I am exchanging a day of my life for it.

When tomorrow comes, this day will be gone forever,

Leaving something in its place I have traded for it.

I want it to be a gain, not loss -  good not evil.

Success, not failure in order that

I shall not forget the price I paid for it.

Reference

Barra, Allen. The Last Coach. A Life of Paul "Bear" Bryant. W. W. Norton & Company. 2005.

Robert Kenndy in South Africa, 1966

www.mixnerstrategy.com

At a time when support of the black community in South Africa wasn't very popular, Bobby Kennedy spoke out (Isaacson, 292):

Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centers of energy and daring, these ripples build a current that can sweep down the mightiest walls of oppression and resistance..."

Reference

Isaacson, Walter. Editor. Profiles in Leadership. Historians on the Elusive Quality of Greatness. W. W. Norton & Company. 2010.

February 22, 2011

Strategy Execution - And Personal Strategy

www.mixnerstrategy.com

References

Christensen, Clayton M. How Will You Measure Your Life? Harvard Business Review. July-August 2010. 46.

Martin, Roger L. The Execution Trap. Harvard Business Review. July-August 2010. 64.

November 27, 2010

Biographies, and a bit of Economics, and, even, Novels

www.mixnerstrategy.com

Nelson Mandela on criticism:  

Leaders fully appreciate that constructive criticism within the structures of the organisation, however sharp it may be, is one of the most effective methods of addressing internal problems, of ensuring that the views of each comrade are carefully considered, that if a comrade is to express his view freely there must be no fear of marginalization or, eve worse, of victimization (Mandela, 326).

On Henry Aaron (yes, he liked Henry way more than Hank - didn't even answer to Hank): "...it was his sense of duty, conbined with a certain steely, uncompromising compassion, that struck" observers "the most (Bryant, 265)." Quietly, almost unknown to his teammates, Aaron sought to help people who were less fortunate that him. On his hunting trips, he befriended a whole community in South Dekota, Spink County and its six major towns, where he visited the Redfield State Hospital and School, and its kids who just wanted to learn how to play baseball the major league way. Over the years Aaron spent days and days just being Henry and talking - and showing - about baseball (Bryant, 268). Aaron, in a way, was in the shadow of such more well known players - black players - like Willie Mays. He ended up playing longer and in his own way, achieved more both on the field, and off. 

On Custer: Given a little time, all of us could come up with a story about Custer's failures as a Western Indian fighter. An interesting aside about Custer's service in the Civil War, at Gettysburg (Philbrick, 47-48):

"The redoubtable Jeb Stuart launched a desperate attempt to penetrate the rear of the Union line. If he could smash through Federal resistance, he might meet up with Pickett's forces and secure a spectacular victory for General Lee. Custer, well ahead of his troops, with his sword raised" charged Stuart and broke Stuart's attack on East Cavalry Field, with "the most gallant charge of the war." Recognizing Custer's contribution to the war, General Sheridan gave Custer's wife Libbie "the table on which Grant and Lee signed the surrender" (Philbrick, 48).

On Lewis and Clark, and Western exploration (Hall): Lewis was the friend of Jefferson, the one that got many of the adventurers into what became one of the great explorations of all time, especially from an American expansion point of view. Technologically, there were quite a few interesting highlights of the journey. Horses. Boats and canoes. Fostering friendship amongst folks who might have no reason to be friendly. Figuring out what those new friends would like to take home. (Blue beads were a good start.) And let's not forget location. They used chronometer and sextant to figure out where they were, all the time trying to figure out which direction tributaries of the Mississippit went - and how far north - as those measurements (Hall, 192) would lead to the derivation of the border between Louisana and Canada. Since Hall's is a novel, we are also treated to a story about the baby born on the journey and, in fact, the technology of raising an Indian child in the wilderness with the technology of exploration. Custer may have failed at the Little Big Horn; Lewis and Clark named the river on their first journed years before.

On Freakonomics: Levitt and Dubner admit that their first book, Freakonomics, had no unifying theme. Upon submitting their second book some time later, they had a different attitude. There was a unifying theme to their work, namely, "people respond to incentives (Levitt, xiv)." There is a Law of Unintended Consequences that operates on economic activities that you ignore at your own risk. Macroeconomics are a big deal; so are microeconomics: a scientist taught a group of monkeys to use money as a form of exchange (Levitt, 212). The University stopped the experiment. Why destroy a happy colony of monkeys by showing them how, over time, one could become richer, and another, thus, poorer? Other key findings? Irrationality is not only human. Monkeys become just as irrational as, say, day traders, when given the right incentives( Levitt, 214). No wonder the University stopped the experiment. Why destroy a healthy colony, indeed?

On the RAND Institute (Nasar, 105):

World War II was a war in which the talents of scientists were exploited to an unprecedented, almost extravagant degree. First, there were all the new inventions of warfare - radar, infrared detection devices, bomber aircraft, long-range rockets, torpedoes with depth charges, as well as the atomic bomb. Second, the military had only the vaguest of ideas about how to use these inventions....Someone had to devise new techniques for these new weapons, new methods of assessing their effectiveness and the most eficient way to use them. It was a task that fell to the scientists.

On Patents, John Atanasoff, and John von Neumann: John Atanasoff, it now proven, developed the modern computer first in a laboratory in Iowa in the thirties. Anyone else who made claims was late to the party. John von Neumann, scientist par excellance and advisor to presidents, wanted to make sure that computers eventually ended up being useful to all scientists, not just a few. His papers, the eventually crucial title of which was "First Draft of a Report of the EDVAC, by John von Neumann", layed out the whole computational universe, and eventually, kept one manufacturer from monopolizing the development of the computer. Good for mankind. Not so good for competing computer patent-holders. There is a message here. Atanasoff was busy during the war years, too busy, in fact, to supervise the patent applications the university back in Iowa was supposed to be submitting. That lack of diligence muddied the whole story of the computer - and the patents thereto - opening up a can of worms that wasn't resolved until the seventies.

On Milton S. Hershey, Hersey's choclate magnate: During the Great Depression, most company's sales continued to fall. Hersey's did as well, bottoming out in 1932 or so and never looking back. In their favor, they were a cheap indulgence that strapped kids could continue to afford, yes, but they also continued to aggressively expand. A film "The Gift of Montezuma" was distributed to theaters about the birth of chocolate, and the birth of Hershey (D'Antonio, 199). During the Depression, Hershey continued to expand both the plant itself in Hershey, Pennsylvania, and the company town. There was, almost nostalgically when seen from today's eyes, a Utopian vision for the town and the company, both created and enlivened year after year by Milton S. Hershey.

On the first nuclear weapons, their utility, and their future: Robert Oppenheimer led a perfect scientific life. He was acclaimed for his scientific work, his management of the bomb facility at Los Alamos, and, finally, denigrated by the government for his realization that there would be no winner in the weapons race of the fifties and sixties, especially if it focused on total nuclear warfare. Eisenhower's "military complex," and political McCarthyism, won in the end, stripping Oppenheimer of his security clearance and the ability to manage large-scale projects while humiliating a kind and honorable man who, seeminly, misunderstood the possibilities of taking on the complex - and winning. The Institute for Advanced Study was his last refuge, a place he changed from a purely mathmatical haven to a creative institute for historians and poets, as well. After Hiroshima and Nagasaki, Oppenheimer realized the responsibility he retained, even if Truman himself thought him foolish, as the buck, as they say, really did end at his desk, not Oppenheimer's.

 

Asgedom, Mawi. Edited by Dave Berger. Of Beetles and Angels. A True Story of The American Dream. Magadee Books. 2001.

Bird, Kai and Martin J. Sherwin. American Prometheus. The Triumph and Tragedy of J. Robert Oppenheimer. Alfred A. Knopf. 2005.

Bryant, Howard. The Last Hero. A Life of Henry Aaron. Pantheon Books. 2010.

D'Antonio, Michael. Hershey. Milton S. Hershey's Extraordinary Life of Wealth, Empire, and Utopian Dreams. Simon & Schuster Paperbacks. 2006.

Hall, Brian. I Should Be Extremely Happy In Your Company. A Novel of Lewis and Clark. Viking. 2003.

Herriot, James. Every Living Thing. St. Martin's Press. 1992.

Lama, The Dalai. My Spiritual Journey. Personal Reflections, Teachings, and Talks. HarperOne. 2009, 2010.

Levitt, Steven D. and Stephen J. Dubner. Superfreakonomics. Global Cooling, Patriotic Prostitutes, and Why Suicide Bombers Should Buy Life Insurance. William Morrow. 2009.

Mandela, Nelson. Conversations with Myself. Farrar, Straus and Giroux. 2010.

Mariano, Connie. The White House Doctor. A Memoir. Thomas Dunne Books. 2010.

Nasar, Sylvia. A Beautiful Mind. Simon & Schuster. 1998.

Norman, Philip. John Lennon. The Life. Ecco. 2008.

Philbrick, Nathaniel. The Last Stand. Custer, Sitting Bull, and the Battle of the Little Big Horn. Viking. 2010.

Smiley, Jane. The Man Who Invented the Computer. The Biography of John Atanasoff, Digital Pioneer. Doubleday. 2010.

September 17, 2010

Ready! Aim! Fire!

www.mixnerstrategy.com

In business, is it "Ready! Aim! Fire!" or, "Fire! Ready! Aim!", or, maybe even, "Fire! Aim! Ready!"?

You don't have to plan what you are going to do tomorrow. You already know what you are going to do.

What if, on reflection, you realized that most of your results tomorrow are going to come from just twenty percent of what you already have scheduled? Would you consider dropping some of your action items and focusing on the most important - the most productive - things? 

This leads to some interesting topics:

  • How do I choose which things to focus on tomorrow?
  • How do I choose which things to do next week?
  • How do I choose which things to do next month ...or next year?

Soon, you realize you're not planning to do all the work. Now we have more questions:

  • How do you involve a team in what you are doing?
  • How does your team decide, individually and as a team, what they are going to do?
  • How do you make sure they actually do what they decide to do, especially individually?
  • How do you measure results?
  • Maybe even more basically, how do you pick a team?

Now for some maybe even more interesting questions:

  • What about your suppliers? What do they think of what you are doing?
  • What about your customers?
  • ...your employees, especially those on the line who don't have the time - or, maybe - the inclination, or the right, to say something?

It's funny how a simple question, "What are you going to do tomorrow?" leads to all sorts of other questions that demand answers. The answers don't have to take a lot of time or expense to generate. You just need them. Now. Or how will you really know what to do tomorrow?

Investing 101

www.mixnerstrategy.com

Bogle on Investing (Bogle, 41)

  • Invest you must
  • Time is your friend
  • Impulse is your enemy
  • Basic arithmetic works: low expenses win in the long run
  • Stick to simplicity 
  • Stay the course. 

Model Portfolios

Malkiel (347), percents, with suggested funds

  • Stocks 50%
    • US Stocks 34% (Vanguard Total Stock Market Fund Index)
    • Developed International Markets 8.5% (Vanguard International Index Fund)
    • Emerging Markets 7.5% (Vanguard Emerging Markets Index Fund)
  • Cash 5% (Vanguard Prime Money Market Fund, or a short term bond fund)
  • Bonds 32.5% (Vanguard Total Bond Market Index Fund; also recommends putting 5% in TIPS)
  • Real Estate Equities 12.5% (Vanguard REIT Index Fund)

Swenson (84), percents*

  • Domestic Equity 30%
  • Foreign Equity 15%
  • Emerging Market 5%
  • Real Estate 20%
  • Treasuries 15%
  • TIPS 15% 

*These are Core Assets of any portfolio (Swenson, 92): "Contribution of a basic, valuable, differentiable characteristic to a portfolio; fundamental reliance on markets, not on active management, to generate returns; and representation in a broad, deep investable market."

References

Ahamed, Liaquat. Lords of Finance. The Bankers Who Broke the World. The Penguin Press. 2009.

Bogle, John C. Common Sense on Mutual Funds. Wiley. 2010.

Ellis, Charles D. Winning the Loser's Game. Timeless Strategies for Successful Investing. McGaw-Hill. 2002.

Malkiel, Burton G. A Random Walk Down Wall Street. The Time-tested Strategy for Successful Investing. W. W. Norton & Company. 2007.

Swensen, David F. Unconventional Success. A Fundamental Approach to Personal Investment. Free Press. 2005.

 

September 16, 2010

Bits and Pieces

www.mixnerstrategy.com

The Facts About Oakmont

Oakmont is a tough golf course, the toughest of all in America if you read Lazarus. That fine. It is also home to the US Open from time to time, and that is the topic of this Lazarus' book. It focuses in on the 1973 Open. Miller beat Palmer, incredibly, with a 63, the lowest score in Open history. Lazarus makes clear that (Lazarus, 353): the sprinklers didn't slow down the course that much, especially on Saturday night; the rains on Saturday should have slowed down the course and made the scores lower - they didn't; Miller's 63 should have been joined by lots of others if it was so ordinary - only four players broke 70, even with the rains; Nicklaus said the course played "normal"; Miller wasn't stressed so he could "go low" - actually he was a stressed as could be, so says, Lazarus.

Lazarus uses four criteria (Lazarus, 356) to label Miller's accomplishment real: this was the lowest score in a championship; this was the US Open, always the toughest; there were real champions in the mix, none of whom overtook his lead; Miller's hot putter kept him on track - he had to be hot, crucially, all through the tournament.

Those are the facts about the 1973 US Open. Took a whole book to get them out in the open.

Steelers/Cowboys

The Steelers and Cowboys were the best they had ever been for Super Bowl XIII. The Steelers won in a hard fought game. That's the story. The book (Millman) tells the story differently using the decline and ultimate failure of the steel industry in Pittsburg as a backdrop for the story. We could linger on the stories about the growth of the Cowboys - America's team from day one - and the fact that the ascendency of the Steelers occured during the decline of the steel industry, a not very pretty picture. Millman takes the time to frame the steel industry with a picture of the steel worker's union and the people who grew it and, as is normal for a union, especially a steel workers union, fought for its control. Pat Coyne's mom died. Pat was a battler for the union. Art Rooney Sr., the Steeler's owner showed up like he showed up at lots of funerals and wakes around Pittsburg. He liked people; he showed up to show it. The folks at the funeral? They smiled for the first time that day (Millman, 237). Art was giving out Steelers tickets to the kids. That's what Steelers football was really about.

Highlander Folk School and the Citizenship Schools

Setima Clark refused to quit the NAACP (Schiff, 277) even when her teaching career of forty years was threatened by her employer's (the Charleston public school system) demand following Brown vs Board of Education that all employees list their affiliations. Members of the NAACP were fired. Clark ended up at Highlander Folk School where ultimately she became education director. Her most famous student? Rosa Parks. Her most important topic? Citizenship and how to be a good citizen in the face of adversity.

Teddy Roosevelt at His Best - or Is It His Worst?

Winston Churchill had, if I remember correctly, moods that he called "The Black Dog," a time of depression that usually followed one of his many political downturns. His solution was to return to his country estate and build things, usually out of bricks and mortar. Teddy Roosevelt did the same thing, but is a different way. Sickly as a child (Millard, 15), Roosevelt's father had "sat his son down and told him that he had the power to change his fate, but he would have to work hard to do it." Work hard he did, in a life-long effort to use exertion and risk-taking as a way to bounce back from defeat. Perhaps Roosevelt's worst defeat was his loss during the presidential campaign in 1912. Post-election, Roosevelt sulked at his estate for months until one of his old friends came to him with a proposal that they explore an Amazon tributary, a journey that became the last - and toughest - jouney of exploration in Roosevelt's eventful life. Changing his plans at the last instant, Roosevelt abandoned his simple plan to journey down already explored rivers for a much more audacious plan to explore a totally unknown river that was, inevitably, rife with plant, insect, mamalian, reptilian (crocodilian, really) and previously unknown - and clearly unfriendly - human life that would just about kill him. This was a savage trip as dangerous as the other journeys of exploration in the early twentieth century (to the poles, for instance). Interestingly, Roosevelt's journey isn't well known, nor do we realize how close to death he came. Millard cunningly scares us with an amazing story. Roosevelt's father's words are the best part, however. You have the ability to change your fate. We all do. We still do. We can.

GxE - Genes Times Environment, Not Genes Plus Environment

The old notation, if there really was one, said that we are the sum of our genes and environment. That's all wrong. We really are not the sum of genes and environment, but the multiplicand of genes and environment. Genes are a good start, but they are not the whole story. The explanation is simple: genes are not just switches to be turned off or on by their presence. Think of them differently. They are really part of a control board, as it were, of switches that "can be turned up/down/on/off at any time - by another gene or by any minuscule environmental input" (Shenk, 7). This isn't genetic predestination. This is genetic variablily to the maximum degree. Roosevelt could change his fate. So can we. Our experiences shape our genes in ways we are just becoming to understand. Some of those experiences we get to choose. Our schools, the music we listen to, our friends - we have choices. Other experiences happened way before we had a choice. Our mother's selection of activities for instance and what she ate and when effected us. So do, and this is even more amazing, our grandmother's selection of activities and experiences. I sometimes use as an example of a strategic choice certain Chinese families which were experts at producing the best in ceramics. One generation would properly store clay for future generations to use to make fine, fine vases for, for instance, the Imperial family. Those strategic choices were good business choices, yes. They were also, probably, good environmental choices that ultimately multiplied the effects of genes in generations unborn.

The Best Sports Writing

I noticed somewhere a comment that the best short story on a sport topic was written by John Updike for The New Yorker magazine. Apparently, Updike's story, Hub Fans Bid Kid Adieu, was written quickly, after an afternoon at the park. It ended up being Updikes sole sports story. Good to know. I dug up the Adieu in Remnick's anthology. A fine piece of work. But there's more in the book, some of it better, in my estimate. John McPhee wrote a story about Bill Bradley, A Sense of Where Your Are (Remnick, 99). He wrote it in 1965 as, much like Updike's story, a farewell to a fine player. Well he got things wrong. Bill Bradley was supposed to never play again, as he accepted a scholarship to Oxford - a Rhodes scholarship, if fact. We all know what happened. Bradley finished his school work and returned to the New York Knicks and a long and wonderful career. That's the sports part of the story. It details the practice, practice, practice that it took for Bradley to make it at Princeton and, later, at the Knicks. His work ethic and his interest in people made coach after coach suggest that Bradley was destined for good things, most likely the governor of Missouri. Well, they got it a little wrong. Bradley ended up being a member of the US Senate. Close to governor, but better, maybe. The point is interesting. Reading this story, I've come to wish that Bradley's determination had led him to the White House. If I remember correctly, he had a couple tries. This story, at least from the determination and leadership side of things, gives evidence that Bradley would have made a fine president. Basketball gives you the opportunity to showboat if your coach will let you get away with it. Bradley didn't showboat. In fact, his Princeton coach had to remind him from time to time that he could shoot, especially when they were behind and needed points that their only All American could provide. Shoot. Now. We need you. Teamwork is great. We get it. Leadership also requires showboating, too. Don't forget that, especially when your star performer is holding back, trying to be a member of the team, especially when you don't need a team member but a performer in the clutch. There are times when you need to say to your best folks, "Stop playing. Shoot. Now." It's OK for you to say that. That's what CEOs do.

Ads on the Freeway

Some time back, I spent a Saturday morning out on the freeway taking pictures of the LapBand billboards. You've seen them, I am sure. One of the local doctor's groups is advertising like crazy. Obviously, there is lots of money in obesity. Allergan, headquartered in Irvine, makes the lapband. They like products like that. Allergan also makes Botox. Both the LapBand and Botox are sold to folks concerned about their appearance. I guess obesity and laugh lines are a little bit different, but they are evidence of the market today - and its changes from even a decade ago. Botox targets folks who want to improve their appearance. Their president talks about a near addiction that folks who try Botox end up with. Once you start, you want to keep erasing those crows feet, no matter how often you have to return to your dermatologist. Razors and blades without the need for a razor, if you get my gist. Wonderful strategy. This craze of appearance has its downsides, as some of the solutions to better looks aren't really that good for you. Anti-aging, the new science, probably had its start here in Southern California. The problem is, not all the science is convincing. Some of it is down right scary. My advice is, "Put up with a few of those lines." Some of the solutions (not Botox, necessaryily. Think human growth hormone and other similar products) out there really aren't solutions at all (Weintraub, 27). They're just a way for some doctor to make more money. Ultimately, the expenses you pay for short term fixes aren't just financial - they're medical, as well.

References

Lazarus, Adam and Steve Schlossman. Chasing Greatness. Johnny Miller, Arnold Palmer, and the Miracle at Oakmont. New American Library. 2010. 

Millard, Candice. The River of Doubt. Theodore Roosevelt's Darkest Journey. Anchor Books. 2005.

Millman, Chad and Shawn Coyne. The Ones Who Hit the Hardest. The Steelers, The Cowboys, The 70s, and The Fight For America's Soul. Gotham Books. 2010.

Remnick, David, Editor. The Only Game in Town. Sportswriting From The New Yorker. Random House. 2010.

Shenk, David. The Genius in All of Us. Why Everything You've Been Told About Genetics, Talent, and IQ is Wrong. Doubleday. 2010

Schiff, Karenna Gore. Lighting the Way. Nine Women Who Changed Modern America. Hyperion. 2005.

Weintraub, Arlene. Selling the Fountain of Youth. How the Anti-Aging Industry Made a Disease Out of Getting Old-And Made Billions. Basic Books. 2010.

Ten Thousand Hours of Practice Aren't Enough

www.mixnerstrategy.com

Gladwell said it first: Practice ten thousand hours (a thousand a year, best case), become child prodigy (Gladwell). Syed takes it a step further: Practicing ten thousand hours isn't enough. You have to spend ten thousand hours purposefully practicing, with the right training system, and, sometimes, in the right town or with the right coach (Syed, 92).

Brazilian football is a good example. Obviously, for many years Brazil has been a football powerhouse. No one ever looked for a cause. It was assumed that kids started kicking a soccer ball much earlier, and for longer, than kids in other countries. That misses an interesting nuance. Yep, kids had soccer balls, all right, but it was a different type of soccer ball, a heavier ball used in the Brazilian game futsal. Futsal is special. The playing field is smaller. The kids get the ball more often. When something goes wrong in the game of soccer, you just boot the ball way down field. In futsal, the ball is too heavy to do that. You have to get out of your predicament on your own. You don't want the ball? You have to find an open team-mate who is close to you and - here is the hard part - make a successful pass. Those skills of finding the open man close by and making the successful pass to him define why Brazilians dominate international soccer (Syed, 87-88), especially since Brazilian kids are fixated on the game. Getting ten thousand hours in before age twenty is easy for them.

Remember, football was an example. A pretty good one. Now, I care a lot more about how to make kids better technologists. The same wrinkles apply. Do a lot of math as a kid. Follow a training system. Move to a town with lots of other kids involved in math. Follow their system. Maybe you won't end up with one percent prodigies, but you will end up sort of like Brazil. You'll have a population of proficient kids who become proficient engineers, who contribute to society in meaningful ways. You could change the math skills to reading skills or writing skills or sports skills or, well, you fill in the blank.

There is a template for excellence. Now we have to figure out how to apply it in our communities, especially in early education. We want a competent society. Here's how to be competent.

Reference

Gladwell, Malcolm. Outliers. The Story of Success. Little, Brown and Company. 2008.  

Syed, Matthew. Bounce. Moxart, Federer, Picasso, Beckham, and the Science of Success. Harper. 2010.

August 22, 2010

In Support of a Liberal Education

www.mixnerstrategy.com

Umami says it all, at least in terms of the tastes - literally - we all feel. There's sweet, sour, salty, bitter, and, new in the last century or so, umami. MSG gives the feeling of umami if you squint a bit (mixed metaphors do ruin things a bit, I know), but it is not exact. It is really the taste you get when glutamic acid is ionized by cooking, fermentation, or sitting in the sun (Lehrer, 58). Aged cheese and ketchup are good sources of the taste. That's why they're such useful condiments. Fish sauce and soy sauce are others. Meat, cooked properly, converts glutamate to a free form you taste, making that steak so tasty (Lehrer, 60).

OK, why bother with a disucssion of umami in a discourse that's supposed to be about strategy? In my estimate, Betty Edwards' book Drawing on the Right Side of the Brain laid out a way to think about things that was revolutionary, if you think about it. There was the analytical side of our brains - the left side - that was very useful at, well, analysis. The right side was different. While you didn't really need to go into a trance to get in touch with the right side of your brain, with a little bit of training in doing things like drawing you could do things - like draw - that you couldn't do before.

Umami style cooking (focusing on taste in new ways) and Edwards' style drawing (focusing on drawing in new ways) are useful tools in strategy. Do your numbers, run the cash flows and ROI, absolutely. Those are all useful analytical tools. Now, stand back. What's missing? How do you take the left brain information - analytics - and combine it with right brain stuff like taste and perception. We've spent a lot of time on disruptive strategy (run "Christensen" on the blog if you want the references). Getting to umami, getting to right brain, getting to disruption require new ways of thinking about perceiving. Adding more features to what you already have is nice, but it is not disruptive. Removing some features to make things easier to use while making your product or service cheaper is disruptive. Heat and some flavors enhance the umami experience in food. Drawing differently - the whole process is not the stick figures we all drew in first grade - enhances your artistic efforts. Strategy is artistic in some ways. Yes, analytics are important, but so are thought processes. Take the science out of your product and look at it more like a novel. Look at your product a different way. You're starting to understand disruption.

Wosniak brought technical skills to Apple early on. Jobs brought marketing skills. Different skill sets. Add umami ingredients to your food, get taste explosion. Address your right brain, get better - different - drawings. Address the left brain and the right brain - the liberal arts side, maybe - in your product sessions, get disruption. Not bad.

Reference

Edwards, Betty. Drawing on the Right Side of the Brain. J. P. Tarcher, Inc. 1979. 

Lehrer, Jonah. Proust Was a Neuroscientist. A Mariner Book Houghton Mifflin Company. 2008.

August 21, 2010

Following the Rules

www.mixnerstrategy.com

West Virginia's Senator Robert C. Byrd was a legend in Washington. Everyone told Barack Obama, freshman Senator, that the most important person for him to get to know if he wanted to get ahead in the Senate was Robert C. Byrd (Obama, 73).  

Byrd had three things to tell Obama (Obama, 99):

  • Know the rules of the Senate. No legislation goes anywhere, ultimately, unless it follows the rules, especially legislation outside the norm.
  • Take your time. Get to know how the Senate works. Know the process before you start campaigning for the presidency, as everyone was seeming to do.
  • Finally, know the Constitution. Byrd carried a copy with him at all times. It's stood the test of time. Understand it. Use it. Respect it.

Byrd had one last thing to say to Obama about the "foolishness of youth," his membership in the KKK way back when. Byrd had regrets. "We all have regrets, Senator," Obama said, "We just ask that in the end, God's grace shines upon us."

Reference

Obama, Barack. The Audacity of Hope. Thought on Reclaiming the American Dream. Crown Publishers. 2006.

Cuomo On Lincoln

www.mixnerstrategy.com

You have to smile when you read Cuomo's book because he takes his point of view and wraps it around what all sorts of different policians and leaders had to say about Lincoln. Of course, every smart politician has tried to say that Lincoln is on his side, an assumption that Cuomo shows is absurd. Leaving aside Cuomo's assumption that Lincoln is on his side, there is one intersting paragraph about Lincoln (Cuomo, 8):

Even as a boy he grasped the single most important idea that would sustain him-and provoke him-for the rest of his days. The proposition that all men are created equal became the thread of purpose that tied the boy to the man and then to the legend. The achievable dream of equality and opportunity for all was the "original idea" for which the struggle was made: the idea that all men are endowed by the Creator with certain unalienable rights-life, liberty, and the pursuit of happiness.

Not a bad paragraph.

Reference

Cuomo, Mario M and Harold Holzer, historical consultant. Why Lincoln Matters. Today More Than Ever. Harcourt, Inc. 2004.

Sticking It Out

www.mixnerstrategy.com

A slug of different, eye-opening books arrived at the local library's new book shelf recently. Usually populated by donations from the community, the new book shelf always has something new and interesting. For me, making my selections new and interesting and strategic is always a challenge. Strategy, luckily, is personal as well, so these new books about the craft of medicine and science are fine.

Indian family immigrates to America. Bright parents foster intellectual capacities of their children. Children succeed beyound all expections. They - the parents and the children - feel uncertainty along the way. That's a story we've all heard before. Indeed, it is the American experience. So what makes Juhar's book on being a doctor special?

Uncertainty is clearly part of the experience. One kid gets his PhD in physics only to decide that maybe it is better to complete his training, not in physics, but in medicine like his brother. He's got the smarts, obviously. Now, does he have the gumption? And that's the point. His discovery that medicine is formulaic, almost to the extreme, is disheartening. But (and now we're getting more strategic) even a formulaic interaction with a patient is always made better by the ability to actually listen to what the patient is telling the doctor. The biggest problem for the young doctor isn't his lack of knowledge, it is his inability to listen carefully early on. Of course, that lack of knowledge forces extra study and grows the ability to ask more senior interns for help. Medicine is formulaic, requires continual study, and forces very bright folks to rely on others for advice.

Interestingly, this is what a bright CEO does as well. CEOs don't havee all the information they need. Neither do doctors. They both have to move themselves and others based on their training, their intuition and advice they receive from others, often in an environment demanding rapid decision-making.

Reference

Jauhar, Sandeep. Intern. A Doctor's Initiation. Farrar, Straus and Giroux. 2008.

June 09, 2010

Bolles on Higher Mission

www.mixnerstrategy.com

Parachute certainly has been a business basic text for decades. Since Bolles has focused so squarely on "Hard Times" this time around, re-examining his prescription for starting a job-change effort is in order. His three parts of a human mission (Bolles, 248):

    1. To seek to stand hour by hour in the conscious presence of God, the One from whom your Mission is derived.
    2. To do what you can, moment by moment, day by day, step by step, to make this world a better place, following the leading and guidance of God's Spirit within you and around you.
    3. To exercise the Talent that you particularly came to Earth to use-your greatest gift, which you most delight to use,in the place or setting that God has caused to appeal to you the most, and for those purposes that God most needs to have done in the world.

Somehow, I don't think he'd mind if we each pause to consider what his statement means for us - and our teams.  

Reference

Bolles, Richard N. What Color Is Your Parachute? "Job-Hunting in Hard Times" Edition 2010. A Practical anual for Job-Hunters and Career-Changers. Ten Speed Press. 2010.

Kennedy: Take the Serious Road

www.mixnerstrategy.com

Being the younger brother and later to leave home, Teddy Kennedy formed a close relationship with his father, Joseph P. Kennedy. Teddy quotes his father suggesting how he structure his life (Kennedy, 162):

You can have a serious life or a nonserious life, Teddy. I'll still love you whichever choice you make. But if you decide to have a nonserious life, I won't have much time for you. You make up your own mind. There are too many children here who are doing things that are interesting for me to do much with you.

Teddy made his choice. He tried harder to have a serious life. He made all the errors we all know so much about. But he also made a choice to focus on what was serious. We owe him a lot for that.

Reference

Kennedy, Edward M. True Compass. A Memoir. Twelve. 2009.

May 31, 2010

How We Got In This Mess

www.mixnerstrategy.com

Phase one of a formula for disaster (Lewis): Take a thousand home mortgages. Rank them according the odds that they will successfully be repaid (and, yes, a few other things, but let's just keep things simple). Stack them up with the best ones on top and the worst ones on the bottom. Divide them into sections - tranches, in finance-speak - and sell the best ones off at a high interest rate and sell the worst ones at a lower interest rate. That's normal stuff. Now it gets interesting.

Take a thousand of the worst mortgages and divide them up the same way, only, since they're all bad anyway, don't really spend too much time figuring out which ones are the bad loans and which ones are the good loans. Pile them up and sell them the same way you did the first batch of one thousand loans.

Do you notice something? I'm sure you do. Since the second pile was composed of all bad loans, it is almost guaranteed that some will go bad. That's, basically, a given.

Now the second phase of our formula for disaster: Assume that residential housing prices will continue to rise - forever. It seems logical enough. We've got lots of history that says housing prices rise over time. We all know what happened. There was a housing bubble. Houses stopped rising in value. In fact, they crashed.

When the finance guys ran the numbers on that second pile of loans we were talking about, they estimated that the whole pile would collapse when three percent of the loans failed. Whoops. We all know what happened. Somewhere around eight percent of the loans failed. The pile of bad loans really fell down. Whoops, again.

Now, in the past, we would have just felt bad for the bond-holders and moved on.

Phase three of a formula for disaster: things get worse. Some smart person realized they could make even more money on the bad loans by insuring their holders, essentially insuring that loans would never fail at more than the three percent rate, let alone the eight percent rate. Since they were so sure of their financial numbers, they did something really smart: they leveraged their bets, big time (or maybe more than that - thirty times or so, actually). Whoops, again.

Put all this in one pot and mix and you have what we got: an almost guaranteed formula for disaster. The best part? Someone - maybe ten someones, actually - predicted all this failure and shorted the market for insurance company stocks, and bad bonds. They made billions. We lost trillions.

Ah, capitalism. Pretty cool, until it's not.

Reference

Lewis, Michael. The Big Short. Inside the Doomsday Machine. W. W. Norton & Company. 2010

May 30, 2010

Story-bound Ethics

www.mixnerstrategy.com

The press has been full of comments about the fiftieth anniversary of Harper Lee's To Kill A Mockingbird. I thought I'd pull the book from the library and give it a quick read over the Memorial Day weekend. Interestingly, my local library didn't have a copy. It did have, however, Johnson's "Casebook to Issues, Sources, and Historic Documents" about the book. Since I have never had to write a report on Mockingbird I have never become informed by a more professional point-of-view and have missed some of the nuances in the book, clearly. That being said, I spent some time considering if there are strategic considerations to the book. Atticus Finch is the lawyer we have all come to know. He is heroic, at least he was, in terms of the times the book was written (the early sixties). But, times (may) have changed. Johnson presents Freedman's (Johnson, 189) point of view that Finch did what was expected of him and wasn't terribly heroic for what he did. He would have been more heroic if he had attacked the system independently of the trial and tried to limit inequalities in the community. She rebuts Freedman with Barge's obvious opinion (Johnson, 191) that times haven't really changed and that there are still opportunities for change to occur in how all sorts of people are treated in America, or around the world (not to mention Alabama).

Just for fun, I examined the Code of Ethics for a consulting organization in Orange County that I have been a member of on-and-off for twenty years. Its Code misses entirely the community nuances of Mockingbird, remaining focused on the professional expectations of consulting, probably correctly. However, and this is where things become strategic, I'll bet each of us, in our interactions with our peers and the community, have opportunities to re-examine what is right, and maybe make a few changes.  This is close to preaching, I'll admit, but like one of my friends likes to say, "Just sayin'...".

Another book I found for the long weekend, Kennedy's Compass, talks about responsibility in this simple sentence, "People responsive to the great human condition, and who've tried to alleviate its misery-these will be the ones who join Christ in Paradise (Kennedy, 29)." Responsiveness to customers is a business condition. Responsiveness to the community is one, as well.

Association for Professional Consultants. Code of Ethics. http://www.consultapc.org/files/codeofethics.doc

Johnson, Claudia Durst. Understanding To Kill a Mockingbird. Greenwood Press. 1994.

Kennedy, Edward M. True Compass. Twelve. 2009.

Lee, Harper. To Kill a Mockingbird. HarperPerennial Modern Classics. 1960.

December 13, 2009

Satisfaction

www.mixnerstrategy.com

Want to be happier? Focus on significant actions says Goldsmith (92). Want happier employees? Forget about admonishing them to work harder. And stop with the trivial morale boosters. They don't make anyone happier. The personal keys: reduce TV; reduce web surfing; do fewer chores; exercise; spend time with people you love; challenge yourself. Focus on meaning at home and at work, not happiness; end up with more happiness. Try to figure out activities for yourself that, while they are fun to do, add meaning to your life.

Goldsmith, Marshall and Kelly Goldsmith. How Happiness Happens. Bloomberg Businessweek. 21 December 2009. 92. http://www.businessweek.com/magazine/content/09_51/b4160092992355.htm

November 27, 2009

A Recipe for Personal Success

www.mixnerstrategy.com

Jonathan Tisch talks about the way he views success as a CEO. One key point is about employee selection (well, actually three key points if you look closely): take your time to hire correctly; then train continuously; finally, recognize and reward for performance (Tisch, 70).

I'd call Tisch a sophisticated manager. Part of the family that owns the Loews hotels, he could be imperious and remote. My read on his is different. I find him approachable and interested in the communities in which the Loews hotels reside, an attribute that, while it is pretty normal, is shown to be a key to the Loews success. People don't just work for Loews. They choose to be there. Choose is a good word.

Tisch has twelve tips for success (Tisch, 227):

  1. Never start a paragraph with "I." Whoops, I already broke the rules.
  2. Listen carefully: You never hear a thing when your mouth is open.
  3. Make it a win/win situation: you can't have it all-where would you keep it?
  4. Do your homework: what you don't know can hurt you.
  5. Be media savvy: Your fifteen minutes of fame is coming-are you ready?
  6. Be creative: Learn to think upside-down, inside-out, and sideways.

There are six more in the book. I choose to read this book when I was preparing a talk on partnerships. The talk was really about strategic partnerships - alliances, really - for start-up companies. There was a little bit of topic-creep going when I started this book, but I ended up happy I'd taken the time to read it. One interesting topic I'd never seen mentioned before: the Department of Labor's Workforce Investment Board. I sit on the WIB in Orange County and continue to be impressed about how useful a little bit of help can be to employers and job seekers. Tisch clearly has the same opinion.

Tisch, Jonathan M. The Power of We. Succeeding Through Partnerships. John Wiley & Sons, Inc. 2004.

July 21, 2009

Disruptive Strategy: Christensen's Little Industry

1+714.673.8578     www.mixnerstrategy.com

Christensen, Clayton M. The Innovator's Dilemma. When New Technologies Cause Great Firms to Fall. Harvard Business School Press. 1997. [Chapter One. How Can Great Firms Fail? Insight from the Hard Disk Drive Industry. http://www.businessweek.com/chapter/christensen.htm ].

Christensen, Clayton M. The Innovator's Dilemma. When New Technologies Cause Great Firms to Fail. Harvard Business School Press. 1997.

Christensen, Clayton M., Jerome H. Grossman, M.D. & Jason Hwang, M.D. The Innovators Prescription. A Disruptive Solution for Health Care. McGrawHill. 2009.

Christensen, Clayton M. Disrupting Class. How Disruptive Innovation Will Change the Way the World Learns. McGrawHill. 2008.

Christensen, Clayton M. and Michael E. Raynor. The Innovator's Solution. Creating and Sustaining Successful Growth. Harvard Business School Press. 2004.

 

June 12, 2009

Richard Branson's Mantra

www.mixnerstrategy.com

The Table of Contents to Branson's book says it all (Branson):

  1. Just Do It!
  2. Have Fun!
  3. Be Bold
  4. Challenge Yourself
  5. Stand On Your Own Feet
  6. Live the Moment
  7. Value Family and Friends
  8. Have Respect
  9. Do Some Good

Not a bad list. The interesting part is that following the list - and only the list - made Branson a billionaire. 

Branson, Richard. Screw It, Let's Do It. Lessons in Life. Virgin Books. 2006.

March 31, 2009

The Latest on Success and Significance

www.mixnerstrategy.com

My friends sometimes suggest topics for reading. A few years ago, David Gentry and I discussed his views on melding success with significance for a balanced life. Feyzi Fatehi and I were discussing Jim Collins' Good to Great. Feyzi suggested a successor that he felt was more important, Porras' Success Built to Last. You'll remember that Built to Last was written by Porras and Collins. Now Porras has his follow-on tome. They talked to two hundred (at least) leaders over ten years of consulting all over the world. You have to watch carefully to make sure you pick which leader they're talking about on any given page. Once you figure it out, it works. So what's useful? Porras et al prescribe a methodology - themes really - to approach success based on their interviews. The themes: Meaning, ThoughtStyles, and ActionStyles.

Meaning focuses on passion. Love your work - have passion for it - and prosper. Work may in fact be the wrong word. It sure seems like the folks who love their work don't really feel like they're working. Warren Buffet shows up ready to play, every day. He's loving it. The passion is real.

ThoughtStyles takes it a step further. Be active in what you love, or commit suicide. That's what one example contemplated. Luckily, love won out. The focus was on realizing that a life wasted was the equivalent of suicide and, if you're going to live it, make it worth while. Courage is a big word. Realize you're in the wrong deal and have the courage to do something about it. A little bit different spin on the word courage. Now comes charisma. It shows through when you take the risk to rise above your fears and do what you are passionate about. The founders of Southwest Airlines got mad about expensive air travel and decided to fix it while having fun (Porras, 113). Fun had to wait, however, while they battled the entrenched competitors to receive a license to fly. Battles first, then fun. Expertise matters to find your way, but, ultimately the story isn't about you and your expertise. It is about the target of your passion. Teachers focus on helping poor kids at their risk. Everyone knows disadvantaged kids are impossible to spur to success - aren't they? Wrong. Passion in the teacher to make up for the lack of advantages to make success happen (Porras, 123).

Finally, ActionStyles comes next. Big goals are important. You've got to remember, Porras and Collins created BHAGS - Big Hairy Audacious Goals. How are the goals chosen - when and how, as well? Those are the questions. I feel better having read this section. If you've been reading my blog and newsletter for a while, you have to have wondered just how I chose my books. Serendipity plays a good part of it. I see an article, find out about an author mentioned in it, and off I go. Or, and this is even more serendipitous, I check-out one of the new books at the library with no knowledge of the topic or author. Successful ActionStyles folks chose a direction and discover things without a real intent. They find out things they hadn't expected to find out. Those things, connected with BHAGs, help breed success. Here's and interesting quote: "Much has been said about the need for leaders to be authentic, but Builders will tell you to be careful about what that means. Your BHAG must be 'real,' but the world doesn't want to know everything you're thinking (Porras, 170)." Have a goal. Go after it serendipitously. Keep quiet about the whys and hows. But have a real BHAG. That's easy.

Porras, Jerry, Stewart Emery and Mark Thompson. Success Built to Last. Wharton School Publishing. 2006.

February 01, 2009

Jefferson's Navy - No Arguing With Success

1+714.673.8578     www.mixnerstrategy.com

While ambassador in Europe, Thomas Jefferson had met with the ambassador of Tripoli. The topic was the treatment of American sailors in the Mediterranean. The ambassador offered "temporary peace" for one price, "perpetual peace" of another, higher, price (Hitchens, 128). Jefferson was angry, to say the least, and personally vowed to do something to stop the Muslim powers slaving activities (Hitchens, 128).

In 1800, the ruler of Tripoli threatened war on the United States if his demands weren't met. Jefferson's response now that he was president? He dispatched a squadron to the Mediterranean interests. He didn't bother to tell Congress. Over four years, the US pacified the region and, during incursions into the harbor at Tripoli, retrieved American hostages and fired captured shipping (Hitchens, 134). Finally, the Marines captured the town and raised the flag providing the words for the Marine anthem "From the halls of Montezuma to the shores of Tripoli (Hitchens, 134)."

So why rehash a story we all know about already? Hitchens call all this "an unalloyed triumph for peace, and the freedom of trade from blackmail, through the exercise of planned force (Hitchens, 135)." It also enhanced our reputation (Hitchens, 135).

We can't say this wasn't planned. Jefferson had been bothered for years by the ambassador's attitude years before. When president, he did something about it. He took action. Given today's environment, taking action without telling Congress would be problematic. So, the test becomes, "What's right in the current situation?" Then you try to do right. That's what Jefferson did.

Reference

Hitchens, Christopher. Thomas Jefferson. Author of America. Atlas Books. 2005.

Obama: Role of Law, and a Good Consultant

1+714.673.8578     www.mixnerstrategy.com

There are so many books on Obama's rise to power that it can get confusing. Mendell's book makes two points that are worth applying to political strategy, and perhaps personal strategy as well. Remember the role of education. Recognize that consultants do play a role.

"I just can't get things done here without a law degree. I've got to get a law degree to do anything against these guys because they've got their little loopholes and this and that. A law degree-that's the only way to work against these guys (Mendell, 82)." 

That's Obama speaking to one of his old friends from Hawaii during the period he was working as an organizer in Chicago. After three years of working organizing, Obama left for law school at Harvard. He was older and more experienced that his classmates. It showed. He worked at school, ran the Harvard Law Review, went back to Chicago, interned at a law firm, and began again. This time things worked better, and at a higher level.

In a way, Obama was lucky because in his Senate race he had a competitor who was rich and able to attract the best of consultants to talk about joining his race. Something went wrong, however. The strategist realized he didn't was to work for the rich candidate, really. He did want to work, however. Who would he work for? He chose Obama. The consultant? David Axelrod.

Axelrod's first advice went to Barack Obama - and Michelle Obama his closest advisor (Mendell, 179). The advice? "Visualize the people he had met and would be meeting on the campaign trail, to try to bring their stories to life (Mendell, 179)."

Obama wanted to succeed at the highest levels. He realized the need for more education. He leveraged the best advice he could get. Not bad strategies.

Reference

Mendell, David. Obama. From Promise to Power. Amistad. 2007.

January 16, 2009

Applying Bogle's "Enough"

1+714,673.8579     www.mixnerstrategy.com

John Bogle is founder of Vanguard Group of Mutual Funds. He is hyping a book lately. The book is descriptive, not prescriptive. In Six Lessons he's usefully prescriptive:

  1. Don't just own stocks. Allocate across the spectrum.
  2. Forecasts don't do a very good job of forecasting.
  3. Superior funds eventually falter.
  4. Own the market in some type of index fund.
  5. Alternative investments are risky. If you don't understand them, don't get involved.
  6. Innovations are great - for someone else. Innovators win, not you.

Bogle's heart is in the right place. His advice is too.

Bogle, John C. Six Lessons for Investors. New York Times. 8 January 2009. A15. 

Bogle, John C. Enough. True Measures of Money, Business, and Life. John Wiley & Sons, Inc. 2009.

Applying Gladwell's "Outliers"

1+714.673.8578     www.mixnerstrategy.com

Gladwell takes the time to view things from a different point of view.

  • EXPERIENCE.     There is no such thing as a hockey natural. The best players just happened to be born early in the year (Gladwell, 15).
  • PRACTICE.     The Beatles were successful because they spent hours and hours playing in clubs in Hamburg. The practice allowed them to perfect their sound (Gladwell, 35).
  • PRACTICAL INTELLIGENCE.      Geniuses don't normally produce for society unless they are shepparded along - or know how to sheppard themselves along (Gladwell, 91).
  • LEGACY.     Southerners are more likely to take offense because of their Scottish heritage (Gladwell, 161).
  • SURVIVAL.     Certain villages in Asian countries had to continuously work 360 days a year in order to survive and prosper. Certain villages in Belgium took the winter off. It ends up that the Asians are better at math because they are more persistent. It's cultural.

On first read, I didn't like some of Gladwell's observations. They felt, let's see, racist, perhaps, or observant of things that I am not comfortable with. When you are done reading the book, however, you realize you could have been Bill Gates, if only - if only - you had had ten thousand hours to fiddle with a computer program before you were twenty. You'd be rich and famous, as well. [Interesting side-bar: Gates isn't the richest person in history. John D. Rockefeller had $318.3 billion dollars; Cleopatra had $95.8; Gates had $58 billion at the peak (Gladwell, 56).]

All this is nice. It certainly can cause you to be envious if you allow it to. However, how do we help folks succeed better.

  • Want to be better at math? Work more hours practicing math. If you have kids, encouraging them to turn off the TV and turn on to studying makes a lot of sense.
  • Driving your kid all over the place to practices and events makes sense, especially during the summer. Languishing in front of the TV keeps a kid's IQ level. Practicing all summer in all sorts of ways makes him smarter (Gladwell, 258).

The facts are known. We can choose to do nothing or we can shake things up. Provide opportunity to all kids to do stuff at the opportune times and they perform better. The crucial word here is "all". Everyone, if they got a chance, would perform better. Regular kids and smart kids. Regular kids and physically perfect kids. Give them more advantages and they perform better.

Don't waste kids. Give them opportunities.

Don't waste employees. Don't let them languish. Give them opportunities to completely engage over their full work experience, get better performance. It's simple.

Gladwell, Malcolm. Outliers. The Story of Success. Little, Brown and Company. 2008.

December 04, 2008

Bobby Kennedy's Hope

1+714.673.8578.     www.mixnerstrategy.com

I grew up in New Jersey and am old enough to remember the day Robert Kennedy's last train passed through New Brunswick on the way from New York to Arlington National Cemetery. But I had forgotten what that day was really like until I read the Prologue of Thurston's new book. I suspect that restraining personal emotions while reading Thurston will be hard for anyone, especially those of us who lived through the times. He details what people were seeing and thinking during that last journey.

  • Since 1968, the word hope has become the oratorical equivalent of an American flag lapel pin ... (Thurston, 2).
  • His assassination on June 5, just eight-two days after he had announced his candidacy, represented not just the death of another Kennedy or a promising young leader, but the death of this hope (Thurston, 2).
  • Theodore White: It was only, however, when the funeral train that was to bear him to Washington emerged from the tunnel under the Hudson that one could grasp what kind of a man he was and what he meant to Americans (Thurston, 3).
  • Because anyone who owned an American flag had flown it or brought it, they saw flags flying at half-staff in front of factories and schools, dipped by American Legion honor guards, and waved by Cub Scouts (Thurston, 4).
  • Some of the spectators who broke into "The Battle Hymn of the Republic" as the train passed through Baltimore and Philadelphia may have been making the Kennedy-Lincoln connection as well... (Thurston, 5).

I had forgotten other things about that long ago campaign, as well. Kennedy had a heart-felt connection to the American Indian and visited incredibly poor reservations all over the country. He visited poor blacks in the Mississippi Delta and came away saddened. There is more. It's all in the book.

So, what is the strategic implication of all this?

Two things:

  • Kennedy took some time to figure out how to come out from under the expectations placed upon him because he was a Kennedy. When we got to know him, he was indeed a different kind of Kennedy from his brother.
  • Kennedy's campaign focused on values in a way his brother's had not. While the implications for America aren't clear - let's not forget that this was a very challenging time in America's history - it is clear that Robert's differences from John would have had implications for the kind of America we all inherited.

The point?

Leaders change the tone of their organizations. If they give thoughtful guidance to their teams, if only by their carriage and tone, they will have large impacts, sometimes larger than they had expected.

Reference

Clarke, Thurston. The Last Campaign. Robert F. Kennedy and 82 Days That Inspired America. Henry Holt and Company. 2008.

November 30, 2008

Obama's First Faux Pax

1+714.673.8578.     www.mixnerstrategy.com

I went to a football school, I have to admit it. I remember traveling to watch our game with Florida at their homecoming and winning, 42 to 3. When we came out of the stadium, our car was covered with garbage. On top of the heap was a littering ticket. Those were the days.

This past weekend, my team lost 36 to 0 to our cross state rivals. That loss was the first one to that rival in six years. Fierce battle. Big bragging rights. Huge. One of the teams is battling for the national championship this year.

Into all this our president-elect Obama steps with an opinion: the BCS poll doesn't work.

We figured that out back when my team was undefeated against all comers a couple years ago and didn't make it into the final for the national championship.

Obama says a play-off is the way to go. He might be right.

But my advice?

Football is too divisive an issue for any president to have an opinion about.

Stick with the fumbling stock market, Mr. President-Elect. No one has an opinion on that.

Reference

Curtis, Bryan. Obama's First Fumble. New York Times. 22 November 2008. http://www.nytimes.com/2008/11/22/opinion/22curtis.html?_r=1&ref=opinion

Read the Prequel to THE Book on the Bust

1+714.673.8578.     www.mixnerstrategy.com

Michael Lewis likes to make predictions, or, at a minimum, examine what went wrong in financial blow-ups, and figure out who knew what to do first. 

Lewis' first book, Liar's Poker is a classic. We talked about it back in August (Mixner). Basically, the book talks about what went wrong when Salomen Brothers went from being a partnership (where the owners took a big, personal, hit if things went wrong) to a corporation (where, yes, the partners were now very rich employees, and where, yes, no one seemingly cared about what happened to the shareholders, who now held all the risks) (See Lewis, Liar's Poker).

An article in Portfolio magazine probably summarizes Lewis' next book (Lewis, The End). If you read anything about the current meltdown in the market, read this article. You're going to have to work to read the article, but every line is worth reading. The only problem is, once you've read the article, you are going to have to figure out who are you going to trust to invest your money.

Key points:

  1. Meredith Whitney forecast Citigroup's current problems on October 31, 2007 (Lewis, End, 116). She identified Steve Eisman as one of the folks who helped figure things out.
  2. Steve Eisman figured out at the end of 2004 that Greenspan's decision to lower interest rates would lead to a "terrible day of reckoning" (Lewis, End, 120). He didn't have a full handle on the situation yet.
  3. Greg Lippman at Deutsche Bank explained how Eisman could make money on his realization: don't short the stocks of financial institutions or home builders - short their sub-prime bonds (Lewis, End 120).
  4. Now Eisman, who didn't have a lot of money to invest, wanted to know which were the worst bonds of all the bonds out there. It ends up that the worst bonds were those tranches of bond financings that were rated BBB (Lewis, End, 122).
  5. Now for the kicker - Wall Street figured out how to take the BBB bonds and repackage them. When rated the new bonds were rated - get this - AAA. A wonderful transformation. Lewis doesn't use the word, but I will. See if you agree: this was a "smirk, smirk" transaction, at best (Lewis, End, 122). He calls it "smirk," - I call it corrupt.
  6. Eisman's last act in making money on the downfall of Wall Street was also insightful: He bet on the downfall of the rating institutions like Moody's (Lewis, End, 156).  

Like I said, read the article, line by line. It is totally worth the effort if you want to understand what has just happened in the markets. It may help you figure out what to do the next time someone tries to sell you a bond.

When the book comes out, read the book. I'm going to.

References

Lewis, Michael. Liar's Poker. Rising Through the Wreckage on Wall Street. Penguin Books. 1989.  

Lewis, Michael. The End. The era that defined Wall Street is finally, officially over. Conde Nast Portfolio. 114. http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom

Mixner, Jack. When Mortgages Were First Bundled - in 1979. Mixner Strategy blog. 25 August 2008. http://mixnerstrategy.com/blog/2008/08/when_mortgages_were_first_bund.html

October 25, 2008

Lincoln's Principled Pragmatism

1+714.449.1040     www.mixnerstrategy.com

Stephen Douglas was re-elected to his third term as Illinois' Senator in 1858, beating Abraham Lincoln in a tight election. 

Douglas supported popular sovereignty, "the doctrine under which slavery in the territories was to be determined by the settlers of the region (Ecelbarger, 28)." This countered the Dred Scott v Sanford decision of 1857 which said, basically, that slavery was permitted throughout the territories. In 1854 Douglas had pushed through Congress the Kansas-Nebraska Act which repealed the Missouri Compromise "and opened territories and future states west of the Mississippi River to slavery" (Ecelbarger, 5).

Lincoln saw all this and responded in his own way. He was a member of the new Republican Party, a party which had two wings with divergent views on slavery, one abolitionist and the other supporting popular sovereignty. He saw the need, if this new party was to be a truly national party, to somehow bridge these two points of view with a third point of view that could unite the Republican Party enough for it to indeed elect the next president. While Lincoln wasn't saying it publicly yet, he wanted to be that next president.

In a speech in Chicago in March, 1859, Lincoln placed himself between the two extremes, coming out against slavery, hoping not that the states could decide individually about slavery (popular sovereignty) or that it be allowed everywhere (Dred Scott), but that it "dwindle to extinction" (Ecelbarger,29) naturally.

The real hope of Lincoln's principled pragmatism was, of course, that the nominating Republican convention for the presidential election in 1860 would realize that Douglas' ambiguous position on slavery would make him an "un-Republican" candidate for the 1860 election, leaving the field to Lincoln.

Lincoln's position between the extremes both for and against slavery ultimately won him the nomination. Pragmatism won. So did the country. Not a bad strategy.

References

Ecelbarger, Gary. The Great Comeback. How Abraham Lincoln Beat the Odds to Win the 1860 Republican Nomination. Thomas Dunne Books. 2008.

August 12, 2008

The Last Lecture

714 449 1040     www.mixnerstrategy.com

Lots has already been said about Pausch's inspiring story. A bit of luck certainly played a part, what with a Wall Street Journal reporter paying his own way to report on the story. Charisma did as well. Pausch took the time to re-order the priorities of such lectures by addressing not only the audience, but the three children he would ultimately leave behind.

Interesting points from the section entitled "Enabling the Dreams of Others" (Pausch, 104):

  • In order to help others, you have to have the time. Use time wisely.
  • Pausch sees himself as a jerk growing up in that he knew all the answers and didn't listen very well. A professor befriended him and pointed out his problem. Luckily, Pausch listened - and passed it on. He shared with his students how they rated on the "Easy to get along with scale," (Pausch, 115). When they didn't listen, or chose not to understand, he intervened. They listened to what others were saying, sometimes painfully, but modified their behavior.
  • Occasionally, people over-perform. What do you do? Applaud, yes. That's obvious. And what else? Assign a higher level task and see what happens.
  • Start something that's bigger than you. Pausch helped create Alice, the Carnegie Mellon software teaching tool. The tool will never be complete, and that's good, say Pausch. The newer versions will get better and better (Pausch, 127) much like Disney's vision for Disneyland - it's never complete, it's always changing.

Randy Pausch can be pretty direct. He certainly lived his last months with different constraints than many of us. Practicing his time management skills became vitally important to him as he juggled his new-found glamour with the reality of a loving family who obviously will miss him.

Key points for me:

  • When people over-perform, build a platform for them to shine, sometimes publicly. His classes were meant to be fun - and engaging.
  • Teams are meant to work well together. Jostle them a bit when they don't, even if it means pointing out painful facts to members who are resisting. Working together is crucial. If you're failing at that, how can you fix it, now?
  • Balancing work and family isn't as easy as some folks make it out to be. Keep trying.
  • Finally, when thanks are in order, offer them up cheerfully.

Thank you, Dr. Pausch.

Reference

Pausch, Randy. The Last Lecture. Hyperion. 2008.

July 21, 2008

Big Consulting Yields Big Data Bases

714 449 1040     www.mixnerstrategy.com

Gallop polls have been around a long time. The beauty of their system, besides the obvious branding, is the depth of their data bases. 

Strengthsfinder 2.0 relies on those data bases to resolve personal questions I find useful.

In strategy, we sometimes perform a situation analysis - the classic SWOT - by asking four questions:

  • What are our internal strengths?
  • What are our internal weaknesses?
  • What are our external opportunities?
  • What are our external threats?

Most times, the strengths list is used to make sure that when we attack the external opportunities we have the strengths to make our strategies work.

SWOTs are really about opportunities. Getting to know your strengths - or your team's strengths - helps you address opportunities when they present themselves. Another useful point-of-view on the process says that if you focus on your strengths you're more likely to create real results. Continuous, incremental changes focusing on your strenths, drives those results (Rae-dupree).

References

Mixner, Jack. First Break All the Rules. Which Rules? http://mixnerstrategy.com/blog/2007/10/change_or_not_to_change.html [Another Gallop tool.]

Mixner, Jack. Think You're a Good Manager? http://mixnerstrategy.com/blog/2007/10/think_youre_a.html [Another Gallop tool.]

Rath, Tom. Strengthsfinder 2.0. Gallop Press. 2007.

Rae-Dupree, Janet. Can You Become a Creature of New Habits? New York Times. 3 July 2008. http://www.nytimes.com/2008/07/06/business/06unbox.html?_r=1&scp=1&sq=janet%20rae-dupree&st=cse&oref=slogin

 

Harvard vs. Berea - and Values

714 449 1040.     www.mixnerstrategy.com

As an investor, I have always marveled at the annual financial performance of the Harvard endowment. Lately, Harvard and a lot of other schools, have had to explain the use they put their huge endowments to, especially in light of the fact that they are allowed to accumulate their wealth tax-free.

Berea College in Kentucky is a little bit different. The college was founded 150 years ago to educate freed slaves and "poor white mountaineers" (Lewin). Currently it accepts only needy applicants (three member families have less than $47,000 annual income) (Berea). The interesting clincher? Every admitted student attends tuition free. Berea, because of its unique values system, has a $1.1 billion endowment, small by Harvard's $35 billion standard, but large when compared to the pool of American universities.

One last unique Berea attribute: every student has an on-campus job requiring at least ten hours per week engagement.

Certainly sounds interesting to me.

References

Berea College. http://www.berea.edu/prospectivestudents/admissioninfo/requirements.asp

Lewin, Tamar. With No Frills or Tuition, a College Draws Notice. New York Times. 21 Juy 2008. http://www.nytimes.com/2008/07/21/education/21endowments.html?_r=1&ref=education&oref=slogin

June 17, 2008

Bear Strategy

714 449 1040     www.mixnerstrategy.com

It was pitch black. I awoke from a sound sleep, right next to a dead tree by a lake. I was in my sleeping bag, inside my one-man tent, camped next to the lake, eleven miles from my car. All alone.

I couldn’t hear anything.

Then I heard it, again. One breath from something big, about a foot from my face, just outside my tent.

In that situation you have a choice. Do nothing. Or do something. Now, that breath was enough. Adrenaline was pumping – big time – so I really didn’t really even have a choice. I was out of my sleeping bag, indeed, out of my tent, in seconds.

Then, I realized what was happening. A bear was stealing my food, every bit of it. Now I had another choice. Same choice as before, really. Do nothing. Or do something. Maybe even run. I didn’t do that. That bear had my food, after all, and I wasn’t turning back from my trip. So, what to do?

Attack the bear, of course. They used to say, make a lot of noise. Yell a lot. Pound on pots and pans. I didn’t do any of that.

I attacked the bear. With rocks. In the dark. I was camped by an old fire ring with lots of nice-sized rocks, perfect for throwing at a bear you can’t see, in the dark. So that’s what I did. Throw rocks in the dark.

And it worked. The bear only ate half my food. The rest was scattered over about a hundred yards of forest where I was able to pick up in the early morning gloom.

It was still dark, remember, so I didn’t know I’d saved my food until later, at about the same time I saw the bear amble by with a smug look on its face. It was staying just out of rock-throwing range, as it didn’t want to get hit by those perfect sized rocks, again.

How do I know I connected with the bear? When you throw a rock, a pretty big one, even in the dark, it makes a nice thud sound when it hits the ground. Most of the rocks I threw were noisy. Some were silent. Those were the ones I am assuming connected with bear, and saved my bacon, so to speak.

So I learned some lessons. Since this was twenty-five years ago, those lessons have taken some time to sink in. I tried everything to protect my food. Some of the ideas were pretty silly, I’ll tell you.

The simplest solution was invented about five years ago, and it is the solution I recommend. Carry a bear canister, an impenetrable can that bears can’t break into.

Put your food in the canister. No more bears in the dark.

Simple strategies work best, even if they take some time to figure out.

I know from experience.

June 10, 2008

The Sustainable MBA

714 449 1040     www.mixnerstrategy.com

Developing world countries are at risk from diseases that are unprofitable for first world companies to address. Northwestern University is doing something about it. 

Faculty from three schools at Northwestern are collaborating with industry and non-profits to identify, develop new drugs or adapt existing drugs to markets that generally wouldn't be addressed (Gentile, 10). They're looking a intellectual property problems, market dynamics, governmental requirements, and distribution problems in new ways, all with the intent of actually distributing products big pharmaceutical companies may look askance at (Gentile, 11).

Sustainable companies theoretically have considered their effect on the environment and are mitigating those effects whenever possible.

Northwestern's program is taking it a step farther. Students learn that, yes, companies must be profitable, and, additionally, there are ways to be profitable that address the normal short term results oriented culture while at the same time remembering that there are long term consequences of their action.

Fuel prices and the carbon footprint problems we are all becoming aware of cause us to look for business solutions to the longer term problems of carbon management for reducing green-house gasses, for instance, or the problems of orphan drugs in third world countries with great needs and little to offer in the way of profits for pharmaceutical companies.

Northwestern it taking a swing at a solution, something we all might consider in the various classes we teach and R&D efforts we lead.

Reference

Gentile, Mary. C. The 21st-Century MBA. strategy+business. http://www.strategy-business.com/media/file/sb51_08209.pdf

May 27, 2008

Truman and the Unions: When Push Comes to Shove

714 449 1040.     www.mixnerstrategy.com

Harry Truman didn't really have an easy row to hoe. Vice President to FDR, he was basically ignored for most of his term. On FDR's death things sped up - quickly. The war was ended on both fronts. The peace brought internal and external confrontations. Returning soldiers wanted normalcy. Europe needed re-building, as did Asia. Russia was expanding ominously. What to do wasn't always very obvious for Truman. Sometimes he didn't look like a very good leader.

One of the reasons Truman was Roosevelt's nominee for VP was his leadership in the Senate. When he needed to, Truman studied a subject until he was the expert on it. Truman began to impress the other Senators with his preparation and passion. His second big speech to Congress was on greed, attacking Wall Street with a New Deal slant. He had a position on civil rights before others were willing to recognize it as a problem (McCullough. 235-245). Other Senators proved their regard for Truman by appearing at fund raisers and campaign stops in a hard fought primary.

As President, Truman had his ups and downs. Finally, however, the downs were in complete control, what with the rail road strike on top of a coal strike. The union leaders weren't going to give, in fact didn't give, until Truman made up his mind to act.

Clark Clifford showed up at the White House as a speech writer (McCullough, 502), having never met Truman before or visited the White House at all. His job? Draft a speech to Congress announcing he would call out the Army and do whatever it took to break the strike. He would control the workers before he would allow them to control America. Truman had a speech all ready to go, a speech everyone said couldn't be presented. Truman was too angry. Clifford had to craft a deliverable speech that got the support of the Congress, and the workers back to work.

Ultimately, the speech was immaterial. Truman announced that the trains were going to run and coal was going to be mined. Period. The unions realized they had better get on board with the President or things would get really ugly. So they did. Everything was fine. (Full disclosure: the Senate finally decided not to support the federalization of the rail system. It was too late. The workers were back to work (McCullough, 506).)

Without Truman's willingness to be a confrontational leader, nothing would have happened. An interesting by-product of the process: Clark Clifford began a long careen in government, playing a large role early-on in the creation of the Marshall Plan (McCullough, 564).

And what are the attributes of a Truman-like leader? Listening abilities, greed averse, a knowledge of history, and, finally, the ability to conduct yourself according to your own high standards (Harvard Business Review, 48).

Reference

McCullough, David. Truman. Simon & Schuster. 1992.

Harvard Business Review. Timeless Leadership. The great leadership lessons don't change. A conversation with David McCullough. March 2008. 45.

Buchanan on Washington

714 449 1040.     www.mixnerstrategy.com

Buchanan reminds us of Washington's first commandmant of U.S. foreign policy: "The great rule of conduct for us, in regard to foreign nations, is in extending our commercial relations to have with them as little political connection as possible (Buchanan, 112).

Why forego the advantages of so peculiar a situation (namely, the distance to Europe)? Why quit our own to stand upon foreign ground? Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toild of European Ambition, Rivalship, Interest, Humour, or Caprice?" 

Washington knew his nation had the potential to be the greatest on earth. He also knew America needed generations of peace to grow to her natural size and strength. The father of his country deemed it essential that young America stay ourt of old Europe's wars."

Buchanan and I don't see eye-to-eye on many topics. This stance, is interesting, however, and worth remembering.

Reference

Buchanan, Patrick J. Day of Reckoning. How Hubris, Ideology, and Greed Are Tearing America Apart. Thomas Dunne Books. 2007.

First Step to Innovation: Build New Habits

  1. 714 449 1040.    www.mixnerstrategy.com

Understand yourself better, innovate better. That's the premise (Rai-Dupree) for change, especially when you realize that you are:

  1. set in your ways,
  2. habits already formed, and that
  3. innovation requires you to look at things differently than you normally do.

How to do it? We train ourselves to believe we can do anything. It's not really so. The simple solution is to do more of what you're good at, not just anything.

We're all used to stretch goals, those a bit beyond comfortable goals and less demanding than stress goals. Stress yourself a bit by learning things about what you are already good in order to increase your innovation results (Rae-Dupree). Kaizen - continuous improvement - is part of the solution. Continuallly improving a simple processes leads to incremental innovation and new solutions.

So, know yourself better, continuously improve, innovate better. Where to start? Markova sets out a process starting with understanding how you process information. She suggests that first you understand how you process information, then understand how your teammates do the same thing, and then try to increase communication - and innovation - by incrementally focusing on change and improvement on the projects you are working on.

The key point in all this was the realization that we all can not be the best at everything and that better results (change and innovation, as well) comes from leveraging what you are good at while playing of your skills and those of your team.

There is a best seller in this space right now that will help us in deciding what to focus on (Buckingham). His three myths (Buckingham. 69.) about strengths are useful:

  1. As you grow, your personality changes. Nope: you become more of who you already are.
  2. You will grow in your areas of greatest weakness. Nope: you grow in your areas of greatest strength.
  3. A good team member does whatever it takes to help the team. Nope: a good team member volunteers for those task she is best at, not what the team needs.

The point? Know yourself. Know your team. Focus on strengths. Focus on incremental change. Innovate better.

Reference

Buckingham, Marcus. Go. Put Your Strengths to Work. 6 Powerful Steps to Achieve Outstanding Performance. Free Press. 2007. 

Markova, Dawna. The Open Mind. Exploring the 6 Patterns of Natural Intelligence. Conari Press. 1996.

Rae-Dupree, Janet. Unboxed:Can You Become a Creature of New Habits? New York Times. 4 May 2008. http://www.nytimes.com/2008/05/04/business/04unbox.html?_r=1&scp=1&sq=janet+rae-dupree&st=nyt&oref=slogin

May 05, 2008

Machiavellian Maneuvers

714 449 1040     www.mixnerstrategy.com 

Machiavelli said there are three ways to hold a state that previously had lived under its own laws (Machiavelli, 46):

  • Allow them to live under their own laws and force them to pay tribute.
  • Go there and live there in person.
  • Despoil it totally.

King George tried to apply Machiavelli's principals to America.

First he tried to allow the colonists to live under their own laws and pay tribute. Taxes might be a better word. That didn't work very well, especially when he enacted taxes without including the colonists in the discussions.

He never considered living in America, but he did, of course, have a government in residence. It wasn't very effective.

Then, tribute failing and unwilling to live in America, he tried to despoil the colonies to bring them back under his control. That didn't work very well, initially, as his troops were bested in Boston.

After retreating from Boston, and landing in New York, Admiral Lord Howe sent captured American General Sullivan to address Congress in order to entice them to negotiate. John Adams accused Howe of "Machiavellian maneuvers" (McCullough, 156), namely, attempting to entice the nation back to subserviency with peace discussions when war had already been declared. None-the-less Adams, with Franklin and Rutledge, were elected to sit with Howe to listen to what he had to say. Howe's words forced Adams to realize that there was no pardon waiting him, and no freedom awaiting the colonies, if the revolutionaries lost. He - and they - would hang. After that realization, it was obvious that no negotiation was going to work and that Howe would have to despoil America to re-take control. While the British had some succeses, ultimately they had to surrender.

George failed, ultimately, as we all know. Distance, both physical and personal, caused him to fail - on all three strategies.

Modern day companies try to do better. Google might be a good case in point. The best recent quote says it all, "Usually, people want to be acquired by Google. It's always very friendly. Because they have choices, and they choose us ( BusinessWeek, 56)."

If only King George had tried a little bit harder. We might all still be British. And Google? Let's see how long their run lasts.

References

How Google Fuels Its Idea Factory. BusinessWeek. 12 May 2008. 54.

Machiavelli, Niccolo. The Prince. New American Library. 1952.

McCullough, David. John Adams. Simon & Schuster. 2001.

April 08, 2008

The Heart of Leadership

714 449 1040     www.mixnerstrategy.com

Leadership isn't really easily defined. For me, examples work better.

GEORGE BUSH

George Bush has had a tough presidency. We all know about his approval ratings and the problems in Iraq. The press, and, indeed, the American populace, has decided that he isn't the leader they thought.

My impression has been that Bush doesn't get closely involved in the decision-making process in the various departments. One instance shows I'm wrong.

In 2006, Bush formed the Iraq Study Group. Its goal was to propose ways to proceed in Iraq. Their report was definitive in saying no new troops in Iraq (Bzdek, 402). Bush found a loop-hole, with the help of James Baker. Of the seventy-nine suggestions none said to increase troops, except on comment in a footnote on page 73 of the report: "We could, however, support a short-term redeployment or surge of American combat forces to stabilize Baghdad, or to speed up the training and equipping mission, if the U.S. commander in Iraq determines that such steps would be effective (Bzdek, 403)."

Here's the part I like: Bush didn't call the Generals to White House. He went to the Pentagon and sat with the Generals. Rumsfeld was at the meeting, along with his successor, Gates. Bush, deviating from his usual course, did the talking. He wanted an assurance that a surge would be useful if he supported it.

Basically, Bush ignored many of the suggestions of his commission's report. He asked the Generals if a surge would work. They said yes (qualifiedly). He supported their statements.

Now, the rest is history. Did he make the right decision. We'll see. Did Bush lead? Yes.

NANCY PELOSI

Nancy Pelosi grew up in a political family in Baltimore, went to school in Washington, married and moved to California, and raised a family. Only after all that did she re-enter the political fray in California. Nominated to fill an empty seat, she was re-elected and worked her way up in the House of Representatives. With the election of the Democratic congress in 2006, she ascended to the position of Speaker.

The thing I find special, as if all her accomplishments aren't special enough, is the way she stage-managed her inauguration as Speaker. Everything was normal except one thing: she wanted to emphasize the enormity of her election (being a woman and all) so she brought her grandchildren along with other House member's grandchildren with her to the rostrum to share in her celebration (Bzdek, 168).

The message was that, yes, there is a glass ceiling for women in America, and, yes, it is possible to pierce that ceiling. She did it. So can every other kid - girls especially - in America.

Bravo.

References

Bzdek, Vincent. Woman of the House. The Rise of Nancy Pelosi. Palgrave Macmillan. 2008.

Draper, Robert. Dead Certain. The Presidency of George W. Bush. Free Press. 2007.

February 21, 2008

On Jimmy Carter's Poetry

714 449 1040     www.mixnerstrategy.com

Gaillard writes a touching synopsis of Carter's legacy. There has been some controversy, a bit of "toughing it out" to make the Carter Center happen, lots of leadership all over the world, and, surprisingly, good poetry.

Carter's mentor on poetry, Miller Williams, had this to say (Gaillard, 88), "I was impressed by what good use he made of the time [Carter and Williams spent together}, and what he was able to pick up quickly. As a poet, he is well worth reading. All his poems begin as Jimmy Carter's and end as the reader's. That's the line, I think, between an amateur and a more serious poet." 

Starts as mine. Ends up yours. Not a bad program for a gift.

Gaillard, Frye. Prophet From Plains. Jimmy Carter and His Legacy. University of Georgia Press. 2007.

February 19, 2008

Making Enrichment a Sure Thing

714 449 1040     www.mixnerstrategy.com

It's a cliché, now, something we all are aware of: some types of American jobs are moving off-shore in record numbers. What's not a cliché, yet, is what to do about it. So let's say, just for arguement, that you had some planning to do for yourself, or, better, a young adult. What would we suggest to make your - or their - enrichment (both emotional and material) more of a sure thing?

Pink lays out a six keys to meeting the demands of the new era:

DESIGN     We used to say "form over function". Pink says, "Not just function but also design (Pink, 65)". He might have said, "The iPod succeeded for a reason."

So what's that got to do with our young person planning her future? Kindergartners know they artists. Just ask them. Second graders still like art. By sixth grade, only a few kids will admit to liking art - now they focus on learning math and language arts. The art of it all is still important. Focusing on art - and design - opens opportunities for growth in the future in occupations that will stay close to home.

STORY     We used to say, before you tried to sell anything, make sure you know all the features and benefits of the product or service you are trying to sell. Pink says, more than the features and benefits, know the story about your product - and tell it.

"So what's my product?", your young person says? "You are," is the answer. Tell your story. Enlighten it with your strengths and interests and focus it on where you want to end up.

SYMPHONY     We used to make sure our mission statements were focused on one marketplace, or even a niche within a marketplace. Pink says, forget focus, look at the big picture. Re-construct it if you have to, but remember that when you are all done, your re-constructed market niches (made up of bits and pieces from all sorts of marketplaces) need to work together, to play together, like a symphony combines bits and pieces into an "arresting new whole" (Pink, 66). Our young person will combine her interests, both right brain and left brain into new creative occupations that won't ever off-shore.

EMPATHY     I thought I knew all about Jerry Ford's Presidency until I read DeFrank's new book (http://mixnerstrategy.com/blog/2008/02/gerald_fords_scoop.html). Jerry Ford did simple things that meant a lot to Americans. When you visited his office, he got up and met you at the door. Seems simple, doesn't it? A couple steps. A little time wasted. But DeFrank got the empathy of it all in that Ford was saying something like, "We're equals. Let's do something good for America." DeFrank got the empathy of Gerald R. Ford, and re-kindled in me an understanding of what leadership really is. Our young person will need to work in a team. The best way to participate in a team - better yet, to lead a team - to show empathy to all the members of your team.

LAUGH     My daughter and I used to practice laughing at the dinner table. She thought I was nuts. So did my wife. Pink says laughing is a big part health and professional growth. He says the best CEOs make people laugh more that CEOs who just manage. I'm going to try it more. If you see me laughing in a meeting - and trying to make you laugh -  you'll know why. And our young person, what should she do? Don't forget to laugh - and motivate others to laugh as well - as you work your way up the ladder. When you get closer to the top, laughter will serve you just as well as it did on the way up, maybe better.

MEANING     My good friend David Gentry used to talk about the continuum from success to significance. Pink's word for significance is meaning. Without having something important to work for, just why are we doing what we are doing in the first place? We all get a choice in what we decide to do. A job with meaning is likely to be a part of the fabric of the community and less likely to be moved elsewhere. High touch jobs like nursing, art (in marketing, for instance), and design aren't going anywhere. Treated properly, they're highly meaningful, as well.

So, what are the possibilities? Think creative, not analytical. Think people, not immediate solutions. Spend more time on things you wouldn't normally consider. Don't become a cliché. And don't let the young people in your life become clichés as well.

Pink, Daniel H. A Whole New Mind. Moving from the Information Age to the Conceptual Age. Riverhead Books. 2005.

The Gerald Ford Scoop

714 449 1040     www.mixnerstrategy.com

The big revelation in DeFrank's book was that Gerald R. Ford had a pretty good idea he would succeed Richard Nixon as President pretty early in his term as Vice President.

The real revelation that we already knew? Jerry Ford was a kind-hearted, absolutely dedicated American who luckily was in the right place to receive the Vice Presidency at a time when we needed him most.

While I had forgotten it, his memoir's title sums it all up: A Time to Heal. 

DeFrank, Thomas M. Write It When I'm Gone. Remarkable Off-The-Record Conversations With Gerald R. Ford. G. P. Putnam's Sons. 2007.

February 13, 2008

Peter Jennings' Legacy

714 449 1040     www.mixnerstrategy.com

Paul Friedman on Peter Jennings:

"The important legacy, as far as I am concerned, is that he achieved this body of work with class, with dignity, with fairness. He never pandered. He never pulled any tricks or stunts the way you see other people doing. He never intentionally made himself more important that the story.... He always considered the story the most important thing-getting the story and describing it skillfully (Darnton, 292)." 

Darnton, Kate, Kayce Freed Jennings & Lynn Sherr. Peter Jennings. A Reporter's Life. PublicAffairs. 2007.

January 28, 2008

On Case Studies and MBA Programs

714 449 1040     www.mixnerstrategy.com

Harvard Business School case studies don't work as well as they could because they give everything away too quickly. They're dense, comprehensive, conclusive and don't require collaboration to solve. A better way? Don't "present the solution until students have grappled with issues on their own (Gloeckler, 66)." See a video of the CEO presenting her problem. Receive minimal backup paperwork. Discuss solutions. Hypothesize possible solutions. Make a proposal. Then see a second video with the CEO's solution. Decide if there were better ways to solve the problem.

If you provide old-way case studies, teach your students to how to prepare for class. At least two readings of each case study with prep on the problems found before class makes sense. After class, summarize findings and begin the cycle again on the next case. Identify and analyze key problems. Generate alternatives. Make recommendations for action (Rondstadt).

Want to re-do your MBA program? Forget the classic silos like finance, accounting, marketing and operations. Think customer, competitor, investor, employee and shareholder (Pellet). Sophistication is another step. Stanford, a "richer" school, is able to provide three different levels based on students' experience. Emphasize leadership, ethics and global institutions and environment to create "global leaders".

How to make a speech into a case study?

  • Present the basic facts in a pre-discussion summary.
  • Hand out a written document of less than a page summarizing the presentation. Discuss alternatives.
  • Now, break into small groups. Amongst the groups discuss key points, ways you have solved the problem in the past, suggest alternatives, posit questions for future discussion, and reach agreement on the best way to proceed.
  • Reform as a group to hear the CEO's actual action plan and results.
  • Discuss as a group alternatives to the CEO's method. Include the "woulda, shoulda, coulda" possibilities.
  • Maybe, convince the CEO of her errors. Finally, plan to ask the CEO to present to your group again in six months to check back on how things are going.

And how to make a case study a basis for discussion to drive strategy at your company?

  • Much like a speech, come prepared with a statement of the current situation.
  • Use the current situation like a straw man. Tear it up. Make changes. Suggest new strategies.
  • Decide which new strategies make sense. Remember, you can't do everything.
  • For the few strategies you chose, create some sort of action plan.
  • Report back to the group your plan, and actions toward the plan.
  • As time proceeds, report on results - often.
  • The tendency is to forget your plan as you focus on the day-to-day tasks that hit your desk.
  • Wrong. Focus on the strategy daily. Sometimes, let the day-to-day stuff wait.

Gloeckler, Geoff. The Case Against Case Studies. BusinessWeek. 4 February 2008. http://www.businessweek.com/magazine/content/08_05/b4069066093267.htm?chan=search 

Pellet, Jennifer. Fixing the Flawed MBA. Chief Executive. http://www.chiefexecutive.net/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=55372CF344D746869D4BE7AD57BA84F4

Ronstadt, Robert. The Art of Case Analysis. A Guide to the Diagnosis of Business Situations. Lord Publishing, Inc. 1988.

January 20, 2008

To Lipitor - Or Not To Lipitor

714 449 1040     www.mixnerstrategy.com

Good article on whether statins, even though they reduce LDLs, make for healty hearts.

You decide.

Carey, John. Do Cholesterol Drugs Do Any Good? BusinessWeek. 17 January 2008. http://www.businessweek.com/magazine/content/08_04/b4068052092994.htm?chan=top+news_top+news+index_best+of+bw

January 14, 2008

Self-publishing Sources

714 449 1040     www.mixnerstrategy.com

Self publishing sources:

Blurb. Real books. Made by you. http://www.blurb.com/home/3

Create your masterpiece and then call attention to yourself. http://www.lulu.com/

https://www.createspace.com/Products/BooksOnDemand.jsp?ref=256590

January 08, 2008

New Elixirs

714 449 1040     www.mixnerstrategy.com

How much omega-3 supplement to receive impacts on heart disease, Alzheimer's and depression? Looks like one gram a day helps heart disease, two grams helps arthritis, and one-half gram a day - or more - helps brain health. Supplements seem to work as well as pharmaceuticals. All were mercury free (Stipp, D2). 

Stipp, David. Fish-Oil Doses Can Be Hard To Swallow. Wall Street Journal. 8 January 2008. D1. http://online.wsj.com/article/SB119975627038373627.html?mod=pj_main_hs_coll