Month: March 2012

Disruptive Technology in Our Future

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In life, sometimes it is the simple things that count despite modern technology.  In the next few months, I will be able to see 3-4 of my books published.  Traditionally, it takes most large publishing houses 12-18 months before their books are published. 

As an independent publisher, I learned that the speed of products to the market place is a good way to beat a large competitor.  In fact, my success relates to a simple website called Elance.com, a freelance website that allow customers to solicit work from a variety of outsourcing services which include programmers, designers, office support, translators, marketers, researchers and many other disciplines. 

Elance.com allows a business to post a job opening and invites freelance workers who believe they have the requisite skills for the job to make a bid. The company charges a $10 fee to each business to post a job and also takes a small portion of what gets paid to contractors. 

 Through this website, I have found some of the most talented individuals from across the world. For these services, it is a buyer’s market.  Some people would argue that it is all about buying cheap labor for profitability.  

In this scenario, developed countries appear to be exploiting underdeveloped countries.  This is not always true.  I have paid more in the past for the best talent.  With that said, potential employers see a website that attracts over 500,000 talented freelancers.  For the freelancer, there is an opportunity to bid on 48,000 jobs, worth $480K. Therefore, a differentiate strategy can defeat a low cost  strategy on a global playing field.  

Technology must be a management tool that is used strategically.  Clayton Christensen, author of The Innovator’s Dilemma, provides a framework for understanding the interrelationship between technology changes and a business success. Christensen demonstrates how successful companies have been overtaken by small disruptive technologies. 

The cell phone, undermining the profitability of the established communication networks such as AT&T, further showcases the impacts of disruptive technology.  Sadly, more executives are unwilling to think strategically due to the wrath of their investors and financial pundits.  

For example, Amazon’s revenue grew in 2012 but the details were lacking.  Amazon.com’s revenue rose to 17.4 billion (35% increase) in the fourth quarter.  However, it fell short of Wall Street predictions. 

According to VentureBeat, Amazon sold as many as 6 million Kindle Fires and its older tablet prototype . Given this reality, the Fire would move ahead of Android tablets from Sansung and Motorola, making it only second to Apple’s iPad. Analysts were concerned that the $199 Fire would make a profit.  Additionally, Amazon.com is spending capital on clouding technology.  

Maximizing profits on Fire as an industry leading tablet is a near- term strategy. However, CEO Jeff Bezos appears to have disappointed Wall Street with a long-term perspective instead of sacrificing shareholders with profits in the near term. 

Innovators take note of disruptive change as positive turbulence in the market.  John Gamble and Arthur Thompson, authors of Essentials of Strategic Management, explain, “Understanding the nature of competitively important resources allows managers to identify resources or capabilities that should be further developed to play an important role in the company’s future strategies.” Therefore, organizations which do not understand the importance of making sustainable growth by being more efficient will not be successful over the long-term. 

 Discuss your professional and personal experiences with disruptive technology.

© 2012 by Daryl D. Green                                                       

 

Social Mobility in America

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Economic turbulence has overtaken the American way of life.  In Europe and Asia, investors stand uncertain of their next moves.  Even America is part of an economic casualty. 

Yet, these problems are very personal to the average citizen. Higher gas prices and costs of living; the housing bust; and the financial crisis cause most people to worry about their future. With a weak job growth, many U.S. jobs continue to be shipped abroad. 

Global competition continues to cause Fortune 500 companies to search for cheap labor to increase profitability.  This reality often places developed countries like the United States at a clear disadvantage.  Consequently, there has been an increasing gap between the wealthiest people and the poorest people in this country.  The reality has become the shrinking or disintegrating of the middle class.

America is a shining symbol for social mobility across the world.  Social mobility can be defined as “the passage of individuals from one social class to another.” Most people feel that if they work hard, they can achieve a better life, regardless of their social standing. 

In some countries, a person is stuck in an economic class with no hope of further advancement.  If your parents are uneducated and work a low paying occupation, the children will grow up in this same status.

Marketing expert Michael Solomon argues the natural progression of social mobility: “People do improve their positions over time, but these increases are not usually dramatic to catapult them from one social class to another.”  The current economic picture makes social mobility more difficult.

Michael Snyder, editor of theeconomiccollapseblog.com, argues the systematic destruction of the middle class: “The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace.” 

Snyder supported his claims with 22 statistical facts.  Below is a sample of his analysis:

  • Eighty three percent of all U.S. stocks are in the hands of one percent of the people.
  • American workers now must compete against situations like China where a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
  •  Sixty one percent of Americans “always or usually” live paycheck to paycheck, which was up from 49% in 2008 and 43% in 2007.
  • Average Wall Street bonuses for 2009 were up 17% when compared with 2008.
  • More than 40% of Americans who actually are employed are now working in service jobs, which are often very low paying.
  • Sixty six percent of the income growth between 2001 and 2007 went to the top one percent of all Americans.
  • Only the top 5% of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
  • In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300-500 to 1.
  • As of 2007, the bottom 80% of American households held about 7% of the liquid financial assets.
  • The bottom 50% of income earners in the United States now collectively own less than 1% of the nation’s wealth.

Many people hold that a political change will rescue the middle class.  As we have witnessed in the 2012 Presidential Election, petty politics are more important than solving the economic crisis.  Therefore, all families are held hostages. Any rescue will not be soon. 

Snyder doubts there is any hopeful solution for the stale social mobility occurring today: “The reality is that no matter how smart, how strong, how educated or how hard working American workers are, they just cannot compete with people who are desperate to put in 10 to 12 hour days at less than a dollar an hour on the other side of the world.”  Many people hope that America can compete in the future without sacrificing her core values related to social mobility.  Others have given up this hope.

 Do you feel social mobility is unsustainable in the U.S. , given global competition?

 © 2012 by Daryl D. Green

Leading from a Public Platform

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I was in the process of getting another laptop since my last one was broken.  I decided to visit a local computer store to talk with its owner; I had been doing business with this company for over several years.  I was looking for an inexpensive laptop since I already had a desktop.  

However, the owner suggested that he could build me a basic computer for a small price. I trusted and respected his opinion.  Yet, I went against the opinion leader because he didn’t fully understand my bottom-line.  Likewise, today’s opinion leaders who lose sight of their own constituents can lose their followers also.  

For the record, an opinion leader is someone who is frequently able to influence others’ attitudes or behaviors. Michael Solomon, author of Consumer Behavior, suggests that opinion leaders tend to share consumer values and beliefs so that there is a connection between the opinion leader and the consumer.   

Marketing expert Guy Bergstom further maintains that an opinion leader is anyone who has an active voice in a community. Therefore, these individuals often speak out on issues and get asked to provide advice.  

In society, there are people who possess natural stature and credibility. Product developers use Hollywood celebrities because they are popular icons that allow them to be opinion leaders.

Currently, the media heavily influences consumer behavior. The Washingtonpost.com has over 10,000,000 readers worldwide. Opinion leaders use this medium to influence public discussion while others come to learn more about the issues.  

For example, most Americans feel negatively about outsourcing abroad, primarily to China and India. They view these foreign countries as a serious threat to American way of life. A recent Gallup-China Daily USA survey demonstrates how media can shift public opinion. Two-thirds of the public and a sample of United States opinion leaders view China to be a friendly ally of the United States.  

With the assistant of the Internet, many individuals can influence other people like never before.  In fact, bloggers and website owners often upstage traditional media because these nontraditional sources because a frequent source for the average person.  However, it is important that opinion leaders never forget their followers in this social engagement.

Discuss your professional and personal experiences with opinion leaders.

 

© 2012 by Daryl D. Green                                    

Mapping out the Green Economy

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Most businesses are promoting ‘Going Green’ while politicians peddle the concept as a way to grow jobs.  Many people have been disappointed with the perceived ‘hype.’  My question, with this concept, was who was going to lead this green economy? 

LMU’s Dean Jack McCann and I published an article entitled “Benchmarking a Leadership Model for the Green Economy” to address this subject.  This paper examined benchmarking leadership theories in order to build a new leadership model for the green economy.  This academic journey opened my eyes on the green economy.

Let’s explore this green economy. Many hope that the green economy will provide new prosperity for America’s future. The current economy is fueled exclusively by oil, natural gas, and coal. As these resources continue to become scarce, the cost increases.

On the contrary, the green economy is environment friendly and provides an opportunity for more innovation. Many experts support the green economy concept. Thomas Friedman, author of The World is Flat, suggests that the stage is set for a green economy with billions of people from China, India, and the former Soviet Union demanding their share of the energy treasure chest.

There will be more energy demands to feed the world’s microwaves, vehicles, and other power hungry technology.  Friedman argues that this global demand would create an environmental disaster. This reality could infuse a new desire for renewable energies and environmental sustainable systems.

For example, Michigan has created more than 11,000 renewable energy jobs in four years; these jobs are compensated with sustaining a fair and equitable wage. Critics argue that some jobs will be lost as more rigorous energy regulations are in place and companies are forced to make energy transitions.

Jerome Ringo, the former president of the Apollo Alliance which has a coalition that promotes clean energy and green jobs, further maintains that these setbacks could be overcome by taking the proper steps. Therefore, the green economy could become a positive driving force in the future.

Ringo argues that green jobs could revive the U.S. economy while resolving some of the worst environmental problems facing the world. He points to this fact based on several states implementing the green economy.  However, other individuals have their doubts about any financial success from the green economy.

What do you foresee as leadership challenges for launching the green economy?  Please share your personal or professional experience on this subject.

 

© 2012 by Daryl D. Green                                    

 

Guest Blogger – Serendipity

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Horace Walpole coined the word serendipity in 1754 after reading the Three Princes of Serendip. The princes “were always making discoveries, by accident and sagacity, of things they were not in quest of.” Today, we have tools at our disposal that allow us to manage serendipity or, at least, place ourselves strategically so that serendipity is possible.

 

What is serendipity? The traditionally accepted definition of serendipity is “the occurrence and development of events by chance in a happy or beneficial way.” Well then, if events are by chance, how is it possible to place ourselves in a position in which serendipity is likely?

 

In their book, The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion, Hagel, Brown, and Davison relate the value of social networking. They specifically mention Facebook, LinkedIn, and Twitter as points of connection to friends and friends of friends. Through these connections we discover others’ have and can share tacit knowledge that we may benefit from.

Through the same connection, others can grow from connecting with us gaining our tacit knowledge. It not a contest to see how many friends we have in our network, rather it is about how we manage our network of friends.

 

Imagine a chance reading of friends’ Facebook wall posts that result in an opportunity to connect with another with whom we share an interest. In this situation, we’ve experienced a “chance event in a happy and beneficial way.” What is the likelihood of this event happening had we not had a Facebook profile, not been linked to our friend, and not been able to read that wall post?

 

Serendipity allows chance meetings for planting seeds of learning and growing if we manage opportunities for chance meetings. Wisdom of the East tells the story of a man, “I have nothing to teach and so much to learn.” In reply, “Oh dear! Haven’t we all something to teach and something to learn?”

 

We are not Princes of Serendip making discoveries by accident. We can create opportunities for serendipitous events to evolve. Do not wait for opportunities to come, seek them, manage them, and benefit from them. Grow in learning; grow in teaching.

Please share your comments on this topic.  

ABOUT THE BLOGGER

 

Dr. Paul Hoffman holds a Doctor of Strategic Leadership from Regent University, a Master of Arts in Leadership and Bachelor of Science in Organizational Communication from Bellevue University. Doctor Hoffman is an adjunct professor at Bellevue University and Metropolitan Community College in Communications Arts, English, and Communication and Humanities.

Before his teaching role, Dr. Hoffman was a graduate enrollment counselor at Bellevue University and enrollment representative to the University’s Quality Council. Dr. Hoffman came to the academic arena after ten years in retail management. During this period he managed in speciality mall stores, and multimillion dollar warehouse style stores. Dr. Hoffman owned a small business and was an insurance agent for a fraternal insurance provider.

 

Dr. Hoffman was a U.S. Air Force active duty noncommissioned officer retiring in 1990 as a Master Sergeant. During over 21 years of active duty, Dr. Hoffman was a Security Police sentry assigned to guard aircraft, missiles, and nuclear weapons on alert and in storage. For three years he held the speciality of Military Training Instructor while supervising an installation correctional custody facility. In the concluding seven-plus years, Dr. Hoffman worked as an installation human relations and equal opportunity treatment NCO and finally as Superintendent of Social Actions overseeing both human relations and substance abuse prevention activities for an installation.

 

Military assignments saw Dr. Hoffman stationed at major Air Force Bases of the Strategic Air Command, U.S. Air Force Europe, and Pacific Air Force. During the Vietnam era, Dr. Hoffman had one assignment in support of major air operations over Vietnam. Dr. Hoffman is married to Su Yun and they have two adult children. Son, Leslie Donald, is the oldest formerly a Captain in the U.S. Marine Corps. Les has two combat tours in Iraq. Daughter, Theresa Ann, was a member of the U.S. Peace Corps serving on the island of Carricaou, the Grenades; her Peace Corps specialty was Community Health focusing on AIDS awareness and prevention and presently studying to become a physical therapy assistant.