What Steve Jobs Taught Me About Growth - Nilofer Merchant - Harvard Business Review

What Steve Jobs Taught Me About Growth - Nilofer Merchant - Harvard Business Review

The Thank You Economy

One of the most influential books in the social media world. Not only does it talk about how social media is changing the world, but also lets you know what you need to do to survive in corporate North America during this wave of cultural change.

The Thank You Economy

We all believe in our own unique ways of dealing with things. We all come up with theories and ideas that help us create something new, especially in the world of business.
But this woman shows what teddy bears can teach us about Ethics:

http://blogs.hbr.org/video/2011/09/how-teddy-bears-can-make-your.html

The Lifetime value of a customer

The Lifetime value of a customer has been an interesting concept discussed in the business world, but I've never seen a good illustration on how to calculate it. Here's an interesting article on it, although it's hard to say this is accurate, but that's just how the cookie crumbles.

http://www.fastcodesign.com/1664927/infographic-of-the-day-how-to-calculate-a-customers-value?partner=homepage_newsletter

Business Wargaming

Business Wargaming is an interesting tool adapted from game theory and war strategy. Such simulations are supposed to help stress-test a business environment and simulate an environment of competitors, market participants, controls teams etc.

The following piece from ATKearney does a good job of giving an overview / introduction:

http://www.atkearney.com/index.php/Publications/business-wargaming.html

Why are leaders bad at Strategy? Its not that there aren't enough strategic analytical tools not available in their toolbox or they don't know how to use it, but rather the fact that leaders treat strategic thinking, which is usually a where to play and how to win initiatives unilaterally.

Both these thinking processes should be combined to get the best outcomes.

Check this HBR article for a better understanding : http://blogs.hbr.org/martin/2010/01/why-most-ceos-are-bad-at-strat.html?cm_sp=blog_flyout-_-martin-_-why_most_ceos_are_bad_at_strat

What is strategy? Some call it the compass that points towards success. But does Strategy exist as a unilateral function in the world of business?

This piece from Harvard Business School - "How Business Strategy Tamed the "Invisible Hand" speaks about how strategy was originally formulated and applied through the times.

http://hbswk.hbs.edu/item/3019.html

Measurability and Intelligence: Increased Ability to See the Exact Condition of Nearly Everything and Being able to React to It

These two pillars go hand in hand since intelligence is acting based on information, which is collected through measurability. On its own, measurability will give management more, timely information to make decisions on but coupled with intelligence, information systems will be readily able to made decisions on collected data immediately. This can be seen in two significant aspects, energy consumption and transportation.

Many companies have implemented energy management, the collection, measurement, monitoring, and benchmarking of corporate consumption and implementing policies to optimize it. This has obvious and significant benefits for both the company and the environment in terms of cost savings and consumption reduction. There have also been initiatives around the world, notably in Malta, to implement a smart utility system. This will allow customers to track their uses in real time over the internet and choose payment plans that fit their needs. The Canadian government also introduced a smart price pilot that awards customers for shifting power usage from peak times to low times. This has resulted in participants shifting up to 25% of their usage away from peak hours. This helps consumers save on energy costs but also protects the environment since power plants run to meet the demands of peak times while having slack during downtimes. This shift results in higher efficiencies since fewer power plants will be needed to meet the same demand.

Furthermore, intelligence has been beneficial for physical transportation and travel. With more precise data on road usage, transporters are better able to position themselves for maximized efficiency. For example, Cosco was able to consolidate its distribution centers from 100 down to 40 by analyzing its entire supply and distribution chain, resulting in a reduction in fuel costs by 25% and emissions by 100,000 tons (15%). Furthermore, intelligence can also be used to solve congestion. IBM has implemented a congestion charging system in many cities around the world, most notably London, England and Stockholm, Sweden. The system combines a plate recognition system with a toll charge levied on vehicles travelling within congested zones between certain peak times in the day. The fees are subsequently used for other transportation infrastructure uses. Since implementation, Stockholm saw a 20% reduction in traffic, a 30%-50% reduction in travel time, and a 10%-14% reduction in emissions. While critics claim that the policy only diverted traffic away from the congestion zone to surrounding areas and so this policy does not actually achieve environmental sustainability, it is reasonable to believe that this policy at least to some degree has been helpful. Especially since this has been implemented in a business zone and its difficult for people to simply relocate their work location, some necessarily still come into the zone but through other methods, whether walking, biking, public transit, or carpooling.

Connectivity: Interactions beyond a Physical Realm

With the advent of electrical communication, starting from the telegraph to the internet, humans have relied less and less on direct, physical interactions. Two major avenues allow us to reduce our impact on the world while maintaining our current lifestyle, off-site work and central offices.

Technology has allowed employees to conduct day to day work activities from the comfort of his/her own home as opposed to the traditional style of working in the office. This model is effective for businesses because it will help reduce: office costs by using more electronic rather than paper communication, real estate costs by needing less office space, and attract/maintain top talent by offering flexible work arrangements. This is also appealing to employees because it allows them to work from home and reduce the inconvenience of commuting. Finally, this is helpful for the environment because it reduces paper consumption, alleviates the pressure on urban land use, and eliminates a significant portion of traffic congestion and the emissions associate with it.

With better connectivity, both physically and electronically, businesses are able to consolidate offices and data centers. What used to require several locations due to proximity reasons now only require one. This undoubtedly enhances many of the same benefits as describe above. For example, a company named Rackforce consolidated its many data centers into one, energy efficient, scalable datacenter. This decreased its overall energy consumption by 40%.

Connectivity: Interactions beyond a Physical Realm

The Death of Corporate Social Responsibility

Corporations and its officers are often portrayed as fat cats and while this is an accurate depiction of some, others are working against that image through corporate social responsibility (“CSR”), the act of giving some profits back to society. However, the era of CSR is coming to an end and should be replaced by a new method, sustainable business; a model that balances social and environmental protection with corporate profit to enlarge the overall pie instead of dividing it between the environment and economics.

This method is both preferential and realistic. Currently CSR is often seen as an expense, a ploy to gain goodwill, or an attempt to do some good at the detriment of the company. As such, CSR efforts are often the first to be cut during an economic downturn. This framework also lends companies to donate money to sensational issues rather than genuinely seek to better the planet. Under sustainable business, companies will seek ways to reduce impact on the Earth while simultaneously reducing cost. These practices will be both economically and environmentally sensible, ensuring their survival even during a recession.

This model is realistic as shown by Ray Anderson and his carpet company Interface. They have been able to reduce net emissions by 82% while also cutting costs. The goodwill gained helped to double the company’s profit. Through recycling and using renewable energy, companies will be able to cut costs in the long run, improve performance through goodwill, and lead the way to a brighter tomorrow.