Feb 3, 2010 | Change, Marketing, Strategy
On the web, you have lost control of the conversations that can impact on you, anyone can say virtually anything they like, and unfortunately because it is “out there” it can gain traction, take on some credibility.
If you cannot control it, you need to be aware and find a way to participate in the conversation as a means to present the facts, alternative views, or a different perspective as a means to debunk the nonsense that can accrue in the absence of facts.
To do this, you need to be an active participant on the web in the forums and communities that talk about your product or service.
In the old days, (and even today) if someone prints lies in a magazine, you could sue, gain a retraction, an apology, some compensation, but on the web, you can do little to force a retraction, the best you can do is enter the debate and point out the nonsense.
Are the skills and aptitudes to effectively debate on line present in your organisation? At the very least, they will be cheaper than lawyers who will be totally ineffective, so look at the cost just as insurance if you cannot see the value in communicating directly with those interested in your product.
Feb 1, 2010 | Leadership, Personal Rant, Strategy
The emerging reality of the emerging “carbon economy” irrespective of the regulatory regime that emerges is not only an operational and regulatory management issue, but a strategic one because of its potential to create and destroy asset value.
Over time, emissions intensive assets will be replaced by those that create the same outcome without the emissions, and new businesses will emerge that provide the technical tools.
This is not an ideological view, it is based on 250 years of commercial history. The same way the internal combustion engine replaced the hay driven horse transport, the telephone finished off the telegraph, the silicon chip finished off vacuum tubes, and the net is in the process of finishing off the CD, renewable/low emissions energy source will finish off coal fired power stations.
As Australia’s politicians, today, start again the wrangling, point scoring, verbal gymnastics, hubris, personal views paraded as facts, dissembling, and plain untruths in the debate about the regulatory framework to be built in this country to supposedly “manage” climate change, they would do well to leaven the mix with some commercial and strategic reality.
Jan 14, 2010 | Innovation, Leadership, Strategy
Like it or not, “Green” is now mainstream, and the market, not the motley bunch of politicians, bureaucrats, activists, and assorted hangers-on who showed up to the failed Copenhagen party, will determine what happens.
Make no mistake, this is a seismic change in nature of economic activity that is evolving far more rapidly than those who seek to extract “rent” from it can change the rules to effectively charge the rent.
Al Gore fronted “An Inconvenient Truth” the documentary which won two Oscars in 2007 (best documentary, best original song) simultaneously with credible economic and political muscle being put behind the notion of global warming, and the stick was pushed into the ants-nest. Concurrently, Prius was a runaway sales success, Slow food & food miles suddenly emerged, Carbon foot-print became a board issue, and Wal-Mart decreed all products on its shelves would have a carbon score displayed, and the ants were running everywhere.
Smart investment is being funneled into development of sustainable/renewable energy technologies from solar, wind, “clean” coal, and those that use energy are seeking ways to minimise use without compromising productivity.
Under these circumstances, the best thing for the rent-seekers to do is stand back, and try to garner some of the credit when it emerges, as they can have little impact on the technical revolution that is happening around them.
Jan 7, 2010 | Demand chains, Management, Strategy
Alliances form because organizations have similarities, and commonalities that promise synergy.
However, most alliances fail because they fail to manage the areas if dissimilarity.
Leo Tolstoy remarked that happy marriages were the result of the manner in which partners dealt with incompatibility, not how compatible they were.
It is the same in a commercial alliance, the literature is full of examples of alliances of one sort or another that emerged because of the prevailing logic of moving into adjacent market areas by merger or take-over, based on seemingly common customers, technologies, channels, or philosophies, only to find a disaster waiting because they failed to see how some dissimilarity that had not been considered relevant threw a spanner in the works, and cost the alliance.
After the synergies have been identified and quantified, but before the deal is done, have a separate group look for the areas where there are no synergies, where the organisations differ substantially, and assess their impact on the potential for disruption of the alliance working as well as the optimists predict.
Jan 3, 2010 | Leadership, Management, Strategy
Is it just a date, or does it signify a new beginning?
A bit of both I suspect, and forecasting the future should be left to the ladies in tents at the circus, but a couple of things we know for sure:
Firstly, the infrastructure of the world economy will undergo a profound change over the next decade as carbon management emerges as the dominating political and economic factor after the turmoil in the Middle East, and the potential that has to blow up in our collective faces. How we manage it over the next decade will impact for generations, hopefully we can avoid the short-sighted, narrow, self interested and belligerent posture that created the middle east imbroglio in the equivalent decade a century ago.
Secondly, the world is now connected, the technical advances of the last decade will throw up huge opportunities to address the challenges and inequities we face globally, but will put many impediments in the way.
Are you ready for the ride?
Dec 7, 2009 | Management, Strategy
Currently I am involved in a portfolio management exercise that covers brands, products, and projects on the books for a modest sized but rapidly growing business. A pretty standard exercise that most thoughtful businesses go through on a regular basis as a part of their strategic processes.
However, it occurred to me that the information, and mindset we were using reflected either an internal view of the piece we were looking at, often driven by what had worked in the past, or by industry trend data, that again, reflected an extrapolation of what had happened in the past, the underlying assumption that the past would repeat itself.
We know that the old saying “those who do not understand the past are destined to repeat it” is true, but what of the flip side, deliberately ignoring the past, to envision the possibilities, and using that to inform your portfolio management decisions.
We tried it, and whilst the process is incomplete, it is certain that the outcome has been altered substantially to what it may have been. We have also concluded that looking from the outside in should be a discipline we impose on ourselves, as that is how the markets, competitors, and innovative insights that can be very “left field” will look at us.
