Month: November 2010

Sustainability for the Future

/ nuleadership / 15 Comments

Do we really want to pry into the future? Some people do not want to consider it.  In the 1970s, Alvin Toffler, author of Future Shock, wrote, “Citizens of the world’s richest and most technological advanced nations, many of them will find it increasingly painful to keep up with the incessant demand for change that characterizes our time. For them, the future will have arrived too soon.”

Clearly, the future is a highway with varying lanes, but do humans have the capacity to accept unhappy endings? In general, it is my position that humans are incapable of accepting unhappy endings. In fact, futurist Edward Cornish argues that it is easier for people to sustain a long-term perspective when they have a clear vision.  In this discussion, we will look at how organizations can create sustainable existence in the future.

Futurists utilize many techniques to anticipate the future. For example, strategic foresight can provide an avenue where organizations can strategically analyze short, mid-range, and long-term planning. Thus, it’s a glance into the future. This concept is easily seen on the Big Screen.

 

Hollywood blockbusters are the chronology of happy endings. People want to believe that all stories have positive endings. This concept is derived from childlike innocence of Americans. Unfortunately, the future may include unpleasant outcomes. Life doesn’t always provide a nice story. For example, globalization can provide many job opportunities, but the outcome isn’t always positive. In fact, the future prediction for the full-time worker is bleak. It is evident that technology and outsourcing are now making the part-time worker a reality of today, not tomorrow.

In fact, Charles Handy theorized that unemployed or spare workers will create their own new work in the future. Therefore, individuals will control their own destiny and become entrepreneurs. However, this runs counter to our American culture. Grandma taught us “go work for a good company and get a good job with benefits.” 

In fact, Bruce Sterling, author of Tomorrow Now, further argues that simple, predictable, and solvable jobs will go to the poorly educated and unprepared or to intelligent machines. However, high-paying jobs will go to the highly prepared, teachable, and creative individuals. In the future, good jobs will be the apex of human difficulty. Technology and understanding of complex systems will require a well-grounded person. However, futurist James Canton argues that American youth, our future workers, will be unprepared in math/science and may be locked out of future opportunities.

Based on many observations, organizations and individuals don’t want to hear negative scenarios for future generations. This reality reaffirms that people don’t want to think negatively about their future. Therefore, they often operate in denial or ignore the future.

Clearly, organizational leaders need to develop a strategy to deal with negative consequences. Many people don’t have the patience to look beyond short-term gains. Therefore, effective leaders need to know how to deal with the possibilities of negative futures.

How do organizations effectively navigate their operations for sustainability in the future?

© 2010 by Daryl D. Green 

The Value Creation Machine

/ nuleadership / 27 Comments

On Tuesday (November 4, 2010), political chatter was all the rage as Republicans gained control over the House, sending a clear message to President Obama that the political landscape had shifted.  The Democrats now occupy the US Presidency and Senate while the Republicans dominate the House of Republications. 

Most experts wonder if Congress will ever get anything done.  As a result of not passing a budget bill in 1995, the federal government was shutdown.  With President Bill Clinton and Speaker Newt Gingrich at the helm, the shutdown was fueled by political fighting.  Sadly, many people look to the government for all of the answers when their own ingenuity would work. 

Yes, the government has an important role to play. I don’t believe that market forces are always the answer to societal problems…the market is not driven by morals or ethics.  In fact, find a cheap labor force across the globe and some businesses will abandon their own creed of “America First.” 

Individuals need to take control of their lives by developing strategies to produce results.  If we are to equip people for the future as scholars, we need to make sure they understand that the future will belong to the aggressor, not the passive in the new economy. During this discussion, we will explore how companies develop value for their customers and how it contributes toward wealth building.

 In uncertain times, it’s virtually impossible to navigate the market without fully engaging customers.  Any operations that fail that economic maxim of the 21st century will fail. Management guru Brian Tracy argues that the duty of businesses is to create and keep customers: “The two most important words to keep in mind in developing a successful customer base are positioning and differentiation.”

Of course, it was possible several decades ago to create products and services without knowing the customer and later convince them to buy.  Many companies during the Industrial Revolution built their success due to scarcity of commodity, limited competition, and uneducated buyers. This is not the case today.

Today’s operations must be value conscious as it relates to the market. Alvin Toffler and Heidi Toffler, authors of Revolutionary Wealth,  research how tomorrow’s wealth will be created, and who will get it and the wealth method. Customer value is defined as the ‘difference between what a customer gets from a product, and what he or she has to give in order to get it.’  They argue, “Today’s wealth revolution will unlock countless opportunities and new life trajectories, not only for creative business entrepreneurs but for social, cultural and educational entrepreneurs as well.”

Daniel Spulber, author of Economics and Management of Competitive Strategy, further suggests that value creation is strategic:  “Managers must pay close attention to value creation because it is the source of the company’s potential profits. The company generates value by providing products to customers, which it produces both by purchasing inputs from suppliers and supplying some of its own.” 

Spulber further outlines a value-driven strategy in three ways:  (a) to attract customers away from competitors, the company must provide sufficient customer value as compared to rival companies, (b) to attract key suppliers away from competitors, the company must offer sufficient supplier value, and (c) to attract investment capital in competition with other market investment opportunities, the company must increase the value of the firm for its investors.

Therefore, effectively managing the attribute of value creation will provide businesses with a competitive advantage.

Briefly explain how value creation has shifted from the Industrial Revolution to the Knowledge Economy and what attributes will be associated with wealth creation in the distant future?

© 2010 by Daryl D. Green

Knowledge Worker Revolution

/ nuleadership / 32 Comments

 

If I had a magical organizational wand, I would turn old toady CEOs into beautiful princes and princesses who champion the causes of their workers. Unfortunately, there’s not enough magic from Oz to convince most executives that today’s workers are more than mechanical parts to their profit machine. During this discussion, we will explore the concept of knowledge workers in organizations.

Some employees feel they are often undervalued and unappreciated by their managers. For example, my friend, Stan, is a very intelligent person in spite of not attending college. He accepted a new job as warehouse operator. Because of downsizing, he became the only person in that department. Stan created his own cataloging system without a computer. That was impressive.

When Stan was up for a raise, he asked for more money. His supervisor explained that it couldn’t be done. My friend countered that he had optimized their warehouse systems, and the operations depended on his knowledge. His supervisor knew it was true because when Stan wasn’t there, no one could find anything.

Stan got what he wanted. He had become a knowledge commodity. This represents the revolution of knowledge workers on the traditional organizational structure. Therefore, if today’s leaders don’t adequately manage the knowledge workforce, they will be at a competitive disadvantage.

Knowledge workers are a critical commodity. Gareth Morgan, author of Imagination, argues that contemporary use of organizational charts and diagrams are major tools for restructuring. However, this creates a false sense that a new organizational chart can solve all of the organization’s problems. Modern-day bosses feel that “top down” management is best. Clearly, they are mistaken.

Georg Krogh, Kazuo Ichijo, and Ikujiro Nonaka, authors of Enabling Knowledge Creation, maintain that knowledge management (KM) is not one person’s job; everyone in organizations can play a vital role in transferring  information. As a rule, an organization’s knowledge and capacity building depends primarily on its human and social capital. In most contemporary organizations, technology can be a critical tool in supporting the knowledge work.

Yet, knowledge workers create and capture information for the management of knowledge. In fact, KM is performed by individuals who belong to communities of interest where knowledge is shared and accumulated. Therefore, effective management of today’s operations depends on talented and gifted knowledge workers.

How do today’s organizations better engage knowledge workers due an era of sweeping layoffs and outsourcing? 

© 2010 by Daryl D. Green

Unleashing the Entrepreneurial Spirit

/ nuleadership / 36 Comments

While on business travel, I was riding the Metro subway in Washington, DC and got off at the end of the line. The location was in a depressed area with little there for the commuter. As I waited for my ride, I saw two young boys carrying a huge box of M&Ms in hopes of selling to weary commuters. I found it amusing that these young men were catering to this market. I wondered how these inexperienced children could be so successful in business. Many individuals are not.

Our grandmothers told us to find a good government job with benefits, and we would then live happily ever after.  We found that wasn’t true.  In fact, companies are outsourcing functions like employees are disposal goods. In fact, Charles Handy, author of the Age of Paradox, predicts that we are witnessing the end of the full-time employee. In this discussion, we will focus on the freelance industry and how it contributes to the growing outsourcing market.

With a weak job growth, many U.S. jobs will continue to be outsourced globally or automated through technology. In fact, the government estimates that an additional 1.2 manufacturing jobs will disappear by 2018. In this economic downturn, many people are unleashing their ‘Entrepreneurial Spirit rather than depend of others.’  According to the Bureau of Labor Statistics (BLS) data, the number of self-employed Americans rose to 8.9 million in December 2009, up from 8.7 million a year earlier. 

Yet, this venture is not just for the young.  Individuals 55 to 64 represented the second-largest jump in their own businesses (just behind 35- to 44- years old) from 2008 to 2009, according to Ewing Marion Kauffman Foundation.  People with talent are finding they can find work anywhere, including abroad. Websites like Elance.com turn local artists to global competitors. However, columnist Nancy Cook notes, “These sites may transform freelancers into mini-nationals, but they certainly don’t offer the wages, benefits, or perks typically associated with global blue-chip companies.” The following list represents the leading freelance websites for employment:

(1)           Elance.com

(2)           oDesk.com

(3)           Guru.com

(4)           PeoplePerHour.com

(5)           Rent A Coder.com

(6)           Demand Studios.com

(7)           Donanza.com

(8)           Sologig.com

(9)           Freelancer.com

(10)        iFreelance.com

(11)       Guru.com

(12)      Gofreelance.com

(13)      Allfreelancework.com

(14)      Worldwideworkathome.com

 Most entrepreneurs are internally driven. According to BLS, the number of employees voluntarily quitting their jobs (February 2010) surpassed the number being fired or discharged for the first time since October 2008. Many people are unsatisfied with their work situations.  In a Right Management poll, 60% of workers planned to leave their jobs when the market got better. 

Gam’s Barbershop is more than a haircut establishment in Knoxville, Tennessee. It is an experience. Men debate. Fans might see a UT athlete or even Coach Pearl there. However, this successful vision came from one person. Despite growing up in a single parent home and fighting numerous youth temptations, Gary Gamble wanted more. Gam explains, “I always wanted to own my own business. I went to barbershop school with my friend. My friend later quit school. I kept on going. I wanted to do something with my life.” He did. In 1993, Gam’s Barbershop was opened. However, it wasn’t easy. Gam says, “I just try to be determined and never give up.”

 

Some people just stumble on a niche. Owners Charles and Gwen Chandlers took a hobby and grew it into a business. Chandler’s Deli, known for its Southern cooking and great service, is located in the heart of an urban area. While many restaurants have failed in the area, this restaurant still stands.

Charles notes, “I think we have been successful for three reasons. They are God, determination between my wife and me, and our personal assets. God just wanted us to have it [this deli].” Currently, the couple is working with the University of Tennessee Agricultural Department to locate a distributor for their new spices. 

With the economic crisis still ahead, organizations are outsourcing more of their routine functions. Additionally, today’s workers cannot depend on their current employer to take care of their indefinitely. Therefore, being a freelance worker can provide a great alternative.

Yet, entrepreneurship isn’t for everyone. Furthermore, there is a continual demand for better services at lower prices by organizations. Therefore, many workers will become independent contractors. Yet, our nation needs to continue its economic development campaign. 

How will freelancers contribute to the outsourcing market?  What operational systems will need to be infused into traditional organizations so that they can use them?

© 2010 by Daryl D. Green

 

[1] “More workers start to quit” by Joe Light