The Rapid Response Institute

Category: Analytics & Studies

  • What Is Your Opinion Based On?

    What Is Your Opinion Based On?

    “Without data, you’re just another person with an opinion.”

    ~ W. Edwards Deming

    Data and its use is a very hot topic these days.  Significant controversy exists over decision making regarding Covid-19 strategies and the quality or lack there of the data supporting government policies.  Scientific disagreements and so called ‘academic arguments‘ are appropriate, especially when facing the NEW.  However, the way some data is being used should give us all pause.

    We will learn a lot from this pandemic, one important opportunity is to understand how incomplete and competing data can/must be used in important decision processes.  By definition, every decision is made with incomplete and/or poor quality data.  Moreover, all data is not revealed by traditional data analysis–Latent variables play a major role in any assessment process.

    Opinions Are Like …

    There are a number of ways to complete the above sentence and we will leave that to the reader.  As Deming mentioned, if the data supporting a position is not valid and reliable, it enters the arena of “FAKE.”  According to Accenture, “Fake data is data that is unverified, maliciously tampered with, or just plain wrong.”

    Unfortunately, much of what is passed today, especially on social media might be classified in the fake category.  With no quality assurance, even by institutional resources, positions are advanced as gospel and are often not just wrong but driven by agendas.

    For example, months ago, hydroxychloroquine was vilified by an on air journalist, yet a world leading medical expert posited that it helped.  Presently, the pendulum has swung against this drug.  Questions of the efficacy of the data have been resurrected.

    It is beyond the scope of this piece to address data nuances. Interested parties may find the Public Health Research Guide: Primary & Secondary Data Definitions useful.  Moreover, it is not necessary to become a data expert or data scientist.  The construct, Wisdom of the Crowds suggest that the knowledge and decision of a large group can be better than experts.

    If you have expertise in data, ask this simple question “Is the data reliable and valid?”  Also, follow the wisdom of physicist Richard Feynman, “If it disagrees with experiment, its wrong.”

    With so many claiming to follow The Science, it is important that individuals have a level of understanding about the data that supports The Science.  Sadly, from this physicist’s perspective secondary, unvetted data is often the weak foundation of their positions.

    So, What Are Your Statements Based On?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Linear Metrics in Non-Linear Times?

    Linear Metrics in Non-Linear Times?

    “If it disagrees with experiment, its wrong”

    Our point today is to assess how behavioral decisions are being made today; not about the politics of one candidate or the other.

    The race to the US presidential election has entered its final phase.  As of this writing, establishment wisdom holds the conventional candidate as the presumptive winner.

    Pollical polling is a linear straightforward process albeit with the inherent bias of ‘all’ behavioral instruments.  Effective surveys will take a statistically significant representative sample and project those results to the larger electorate.  A time-honored approach for product marketing as well.

    However, there is another school of thought.  When a new produce/idea is disruptive or not well understood, the firm needs to be proactive rather than simply reactive such as using a survey.  Steve Jobs stated, “You can’t just ask customers what they want and then try to give that to them.  By the time you get it built, they’ll want something new.

    One interpretation, ‘They don’t know what they don’t know.’  Echo the words of Donald Rumsfeld!

    Pollsters suggests that 2016 will not be repeated and they have modified their survey instrument control processes.  Recently one noted canvasser, Frank Luntz stated, “Pollsters did not do a good job in 2016.  So, if Donald Trump surprises people, if Joe Biden had a 5 or 6-point lead, my profession is done.”

    Our Lying Eyes

    When the world was the center of the universe with all the stars and galaxies rotating around us, linear projections confirmed the observed metrics.  However, famously, Nobel laureate, Richard Feynman taught us that, “If it disagrees with experiment, its wrong.”

    Galileo and Kepler among others experimented using the observable data differently.  They discovered that the universe does not revolve around our planet.

    Their assessments altered the given world forever and caused them significant personal angst in the process.  Established ‘science’ did not welcome this change readily.

    If the incumbent rallies and is elected for a second term despite expert projections using legacy linear tools, it maybe time to rethink how social beliefs and behaviors are measured.  Given the problems with Covid-19 data management, the same maybe said for that issue as well

    Hypothesis—Disruption cannot be accurately measured with traditional tools.

    Learnings

    Beyond politics and marketing, there are lessons for all of us.  Artificial Intelligence, Search Engines, Predictive, Big Data Analytics, Machine Learning, IoT et al are now all the rage.  But what if they are using the wrong algorithms?

    There are ramifications for our daily lives.  In March 2019, the Boeing Max 8 was grounded and has yet to return to service.  Will driverless automobiles put us all at risk?

    This survey question maybe answered on November 3 or whenever the final results are tabulated.  Other questions about the use of other metrics will remain unanswered; at least for now.

    How are you certain your decision supports processes and tools are providing valid and reliable data?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Data Bias: The Latent or Unobserved

    Data Bias: The Latent or Unobserved

    In statistics a Latent Variable can be defined as, ‘a variable inferred from observed or measured data.’ Its analysis is often used psychology, economics, and predictive modeling.  This author used Structural Equation Models (SEM) in his 1996 doctoral dissertation, Cross Cultural Negotiations Between Japanese and American Businessmen: A Systems Analysis (Exploratory Study).

    From that abstract, “The use of sophisticated statistical techniques such as structural equation modeling and game theory is becoming increasing more important.  Traditional techniques are known to be limited, particularly in the context of cross-cultural behavioral studies.”

    Survival Bias

    A recent LinkedIn post alerted this writer to the inimitable perspective statistician Abraham Wald brought to the assessment of World War II Allied bomber damage upon return from missions.  He argued that observed anti-aircraft damage was non-crippling since the aircraft remained airworthy and was able to return.

    He surmised that planes that did not come home may have suffered damage to other areas making them unairworthy and hence their data was unobserved.  Based on this analysis, the U.S. Navy beefed-up armor in the less or unaffected areas and this was credited with saving lives and aircraft.

    This type of analysis came to known as Survival Bias which has its proponents and detractors.  On the surface, it seemed intuitively obvious that areas of damage need addressing while not necessarily those statistically showing fewer issues.

    It is not our intent herein to assess its merits and applicability.  Rather to help readers better understand the very nature of big data and its use, especially in predictive and behavioral models.

    Covid-19

    Today, policy and other decision makers are tasked with dealing with a deadly global pathogen.  Apparently developing quickly and spreading exponentially—a super spreading event.  As of this writing has afflicted millions in 188 countries/region in much less than 12 months.

    In this pundit’s opinion, much of the concern, confusion and clearly wrong information regarding this disease and mitigation protocols can be traced to data collection and analysis.  By now most readers will have some familiarity with the chaos associated with these predictive models.

    For example, according to the US National Library of Medicine, National Institute of Health, “A key fact for us all to remember is that, for the majority of countries, we’re not actually counting how many people have the virus—instead were counting the reports of how many people have the virus, and, like all metrics, those numbers vary according to how they’re measured.  An increase in the number of tests being carried out will result in an increase in the number of infections detected.”

    In addition to the Herculean efforts to tame this tiger from the vast medical, scientific, technology and many other disciplines, Structural Equation Modeling is being used to shed additional light on the latent variables.

    Final Thoughts

    The 2020 Coronavirus is an early test of Big Data analysis in support of decision makers both for public policy and non-government organizations.  While performance so far has been weak, this pundit believes great value can come from this effort.

    Data quality must be highly reliable and valid.  Moreover, models must assess what is not seen, the latent variables such as found in Survival Bias.  These two aspects of strong decision support models are crucial.  These are lessons for all of us.

    Where Didn’t the Bullets Hit Your Business Model?

    For More Information

    Please note, RRI does not endorse or advocate the links to third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We are presenting, Should Cross Cultural Serious https://rri-ccgame.com/Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely conference!!

    You can contact the author as well.

  • A Funny Thing Happened on the Way to . . . Innovation!

    A Funny Thing Happened on the Way to . . . Innovation!

    The anecdote, ‘A Funny Thing Happened on the Way to’ wherever manifests itself for a number of paths.  One interpretation; we often end up somewhere other than expected.

    We find ourselves at another historical precipice.  Some suggest Armageddon, the end of life as we know it and the emergence of a new normal.  This writer only agrees with the last two words.

    New Normal

    Since the advent of Covid-19 in the United States (probably before) the medical community has been doing some great things at hyper speed.  Now it is hard to keep up with the creative, innovative and downright amazing work being done at the global scale.

    Some argue that the new normal will include an army of remote workers.  Probably some truth to that but perhaps more importantly will be the recognition that society can quickly ‘scale’ to the global level when confronted with new and unknown threats.

    Reduced Cycle Time and Cost

    This pundit has long advocated that the use of knowledge enabled by technology can reduce project cycle time dramatically.  It can also significantly reduce project cost as well.  If we visualize the Covid-19 global initiative as a project, then perhaps most importantly we can decrease the timeline pointedly.

    To be clear, this writer has no medical training and is only prognosticating that the use of knowledge enabled by technology can reduce the overall time and impact of the pandemic.  After all, this is not 1918!

    For example, many will be familiar with the TV sitcom, M*A*S*H, set in the Korean War of the early 1950s.  We are seeing modern day versions of the Mobile Army Surgical Hospital with the deployment of new ‘temporary’ hospital beds to virus hot spots like NYC.  The medical profession has established long standing triage protocols as well.

    Moreover, the use of 3D printing has augmented the medical equipment manufacturing process in ways no one could have foreseen on January 1, 2020.  Changes in Clinical Trial protocols and other pharmaceutical related processes are, as the saying goes, ‘on steroids’ destroying this virus.

    The list goes on and shortly after this publication, this post will probably be outdated—the rate of positive change is so explosive right now.

    Donald Rumsfeld gets credit for saying, “There are known knowns.  These are things we know that we know.  There are known unknowns.  That is to say, there are things that we know we don’t know.  But there are also unknown unknowns.  There are things we don’t know we don’t know.”  However, this construct has its roots in the 1950s.

    I am betting that last sentence will fall sooner rather than later.  We are rapidly learning what we don’t know we don’t know.

    Godspeed to all on the front line and those of us who are not will continue to support you in every way known and about the be known that we can.  This writer grows less concerned about the final outcome every day.  It seems that collectively Humankind is rising up to the challenge.  We will prevail!

    How is your knowledge enabled to contribute to the demise of this pandemic?

    For More Information

    Please note, RRI does not endorse or advocate the links to third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We will be presenting, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 beginning April 5, 2020.  Check it Out!!

    You can contact the author as well.

  • Is Big Data Analysis Being Applied?

    Is Big Data Analysis Being Applied?

    We have been hearing for years how, Big Data Analysis will help us optimize our businesses and generate performance at levels here to for never hear of.  So where is it now?

    Two major sources for data on the Covid-19 virus are Johns Hopkins University and the Centers for Disease Control and Prevention.  This is fine at one level.  Living in the Houston, Texas metropolitan area, this pundit can see a general (real time) overview of the situation from either.

    However, my home is on the west side of the city.  I was recently surprised to learn that most of the local exposure is on the east side; 30+ miles from my domicile.  Is my risk lower than I am being told by the authorities?  Or is it the same or higher?

    Why am I staying at home?  Perhaps the result of a blunt policy instrument?

    It appears to me that most medical professionals are not Data Scientists.  Absolutely knowledgeable in their field, including pathogens (I personally know many in the field including a pathologist).  Is that system taking help from data scientists?  I have not heard that it is.

    Additionally, if the argument is we don’t yet have enough data, this holder of a doctoral degree will argue that Small Data set modeling can be effective as well.  My doctoral dissertation was founded on these statistics.

    I have no doubt that the best minds are working this problem.  However, if policy makers take a hammer to the nail, when perhaps a series of tacks is appropriate, significant economic damage will continue.

    The tack approach appears to be what we are hearing about certain parts of the United States coming back online in a week or so.  The concept of months some advocate makes no sense to this writer.  We will see social unrest long before that.

    The Big Data Analysis sector has been pressing their value proposition and software/solutions for years as a way of optimizing businesses.  Why is the sector quiet regarding coronavirus?

    If we can parse data and sell web advertisements based on ‘clicks’ why can’t we figure this out a level of granularity that allows the economy to restart (at least in some geographies)?  Get to work guys and prove my concerns wrong!

    Finally, what is the role for Artificial Intelligence (AI)?  Its advocates suggest it has magical powers and it  has been used to solve other problems.  Prove it on this global stage!

    Where are Big Data and AI in this fight?

    For More Information

    Please note, RRI does not endorse or advocate the links to third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We will be presenting, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 beginning April 5, 2020.  Check it Out!!

    You can contact the author as well.

  • Lessons from the Seventies

    Lessons from the Seventies

    At lunch the other day and for whatever reason, the history of the 3M Post It Note became a subject of our conversation.  This technological marvel unveiled in the 1970s is still widely used today.

    As with other new or disruptive technologies, the ‘sticky note’ was panned at first and for some time.  According to Wikipedia, the technology was first developed in 1968.  It was not until 1974 that it gained some internal company support.

    When finally introduced in 1977, the pilot results were unsatisfactory.  However, things started to change in 1978 when a small (focus) group of consumers were positive about the product.

    The United States roll-out began in the spring of 1980, followed by Europe and Canada in 1981.  A bit of trivia, the reason it was originally yellow was because yellow colored scrap paper was readily available at its inception.

    Earlier the day of our lunch meeting, a discussion revolved around how long it might take an idea to become a fundable start-up company.  Several participants argued that with proper guidance, the process still might take up to two years.  This pundit argued that many entrepreneurs would see that as too long and become disinterested.

    The legacy of the Post It Note suggests that this pundit might be incorrect.  The lowly sticky note did not even begin its journey to become a Unicorn until twelve years after its technology was discovered.

    In 2015, we penned a blog, Titans of the 1940s Today.  The basic premise of that piece was when commenting about the Internet of Things (IoT) and its complexity, individuals such as Richard Feynman and John von Neumann (father of the 1945 computer architecture that is the basis of modern computing) had developed solutions for today prior to this author’s birth.

    We stand on the shoulders of these and other giants.  The challenge of every generation has been to build on what those who came before advanced.  So it remains today!

    Body of Knowledge

    Human kind has developed a rich body of knowledge in all areas of endeavor.  It is readily available for entrepreneurs as well as those employed by all types of organizations.  This knowledge base has been addressed in this blog and other writings by the author.  Interested readers are invited to review my blogs and newsletters dating back to the last century.

    Our march through history provides all of us a ‘go-by’ that can shorten our learning curve.  One example this author often cites is the depth of historical knowledge of management.  Contrary to many gurus, humans have managed others and processes for many millennia.

    Fail Fast, Fail Often?

    If 3M or Feynman et al practiced this technology development model as most interpret it, our world might be a lesser place.  Give up and move on to the next?

    One interpretation suggests, “Originating from Silicon Valley and its ocean of start-ups, the real aim of “fail fast, fail often,” is not to fail, but to be iterative.  To succeed, we must be open to failure—sure—but the intention is to ensure we are learning from our mistakes as we tweak, reset, and then redo if necessary.”

    This same article goes on to state, “Thomas Edison, by example, ‘failed’ 9,000 times before he was successful with his light bulb invention.”  Perseverance can be a lonely quality!

    Don’t lose heart.  Great ideas abound but must gestate.  It is often said that we find our soulmate when we least expect to—I know I did.  Progress is an iterative process fueled by creativity and critical thinking.

    Is Your Idea a Unicorn Waiting to be Born and Mature?

    For More Information

    Please note, RRI does not endorse or advocate the links to other materials.  They are provided for education and entertainment only.

    You can contact the author more information as well.

    End Notes

      https://en.wikipedia.org/wiki/Post-it_Note

      https://therrinstitute.com/wp-content/uploads/2018/10/Titans-of-the-1940s-Today-April-20-2015.pdf

      https://therrinstitute.com/wp-content/uploads/2019/10/1993-Management-Theory-Evolution-Not-Revolution.pdf

      https://www.forbes.com/sites/danpontefract/2018/09/15/the-foolishness-of-fail-fast-fail-often/#1db35b0e59d9

  • It’s the Economics Stupid!

    It’s the Economics Stupid!

    Since it was first uttered in the early 1990s, the phrase “It’s the economy stupid” has been used and misused extensively.  Let’s squander the lexicon one more time.

    The US ‘silly’ political season is well underway and forecast to last almost 13 more months—no telling what voodoo economics will emerge.  Those of us with our business noses to the grindstone must ride this stormy weather to a safe port next November.

    Most have an interest in the macroeconomic policies nation states put forth but other than voting and perhaps lobbying, there is little many can do to materially impact the economy.  What we can do is focus on the economics of our business—CAPEX.  Hence, our daily mantra should be, “It’s the Economics Stupid.”

    What Is Your Value to the Customer?

    For over the fifteen our organization has been, “Helping Clients Achieve Organizational Agility, Resiliency and Sustainability.”  Assisting clients develop and articulate a viable economic value proposition has been one of the most elusive and vexing challenges.

    There is a strong tendency to make statements that are Overstated, Not Demonstrable, and Not Defendable.  Declarations such as, “Enhanced credit control system for partners through increased information visibility” are effectively meaningless—yes, this is an actual quotation from a software company.  Customers are left with the question, “What does that mean for me?”

    Translate Technology into the Language of Business

    If you leave your customer with the above and/or other questions regarding your value to their enterprise, likely the sale will not close.  Probably, a more coherent competitor will leave with the deal.

    CAPEX always undergoes extensive scrutiny; even at the Board level in some cases.  While new and cool technology may ultimately be disruptive and of extremely high value, peddlers must speak the language of the Chief Financial Officer and her staff.  These are ‘green’ deals!

    Those tasked with generating revenue from technological solutions must also take on the role of translator.  Bridging the cultural differences between cool stuff and the bottom line requires a Rosetta Stone.

    The Economic Value Proposition Matrix® model (EVPM) was originally developed with a Super Independent oil and gas operator at the first part of the century to become that Rosetta Stone.  Working with customers, technology providers can now prepare for the inevitable decision by the CFO.  Usually, the vendor will not attend said meeting but preparing the customer staff to make the case is mandatory.

    This video tells the whole story in less than 43 minutes.  Is winning your next deal worth an investment of three quarters of an hour?  If not, keep doing what your doing and hope for a different result.

    The video makes the case that technology offerings often seems similar.  The same buzzwords and euphemisms often confused clients and make it appear that since the solutions are basically the same, just go with the low dollar.  Rising above this clutter is required to be successful.

    How is Your Value Proposition Better Than Your Competitors’?

    For More Information

    Please note, RRI does not endorse or advocate the links to third party materials.  They are provided for education and entertainment only.

    You can contact the author more information as well.

    End Notes

      https://en.wikipedia.org/wiki/It%27s_the_economy,_stupid

      https://www.forbes.com/sites/briandomitrovic/2018/12/02/george-h-w-bushs-voodoo-rhetoric/#26f9ad21798a

      https://www.investopedia.com/ask/answers/042415/what-difference-between-operating-expense-and-capital-expense.asp

     https://en.wikipedia.org/wiki/Rosetta_Stone

  • In Defense of Humans—Machines Are Not Ready Yet

    In Defense of Humans—Machines Are Not Ready Yet

    I recently submitted an internal organizational document that was spellchecked in addition to my review; several times.  One sentence where there the intent was to say, “that which is …” was change to “that witch is …”

    Did I type it wrong or did ‘auto correct’ take over the decision process?  In any event spellcheck did not perform adequately against minimal Quality Assurance standards.  And how many of us ‘fat finger’ text messages?

    Is this is the technology that is going to drive me to work safely over 200 days a year; round trip?  I hope not.

    One pervasive message—technology gets better with time (more mature).  Is this true?

    How old is spellcheck?  By some accounts it dates to the 1960s.  Most believe by the late 1970s.  So close to half a century.  Yet!

    Usually a spellchecker is not used in a life or death situation.  That is unless it’s for your resume or job application!  However, what about software that is utilized for critical processes, i.e., medicine, process control, etc.

    There are many examples where apparent software failures have negatively impacted human life.  This pundit has written this subject including a look at Man Machine Codependency.  In another blog we commented on problems associated with valid and reliable analysis of Big Data.

    In this author’s opinion, software is getting better and while most likely will not be perfect, will change our daily processes.  The human overlords will need to be trained and/or retrained for the digitalization era.

    This cautionary tale is not about this writer’s inability to use word processing tools.  As we depend on these tools for critical decision making, we must have the core knowledge of the subject we are tackling.

    During a class on digitalization for my master’s level students, I put forth several examples where errors were made by various software applications.  Most had a level of comedy to them, but ALL have potential real-world consequences (bold font).

    • All People in Canada are the Same Age—Demographics for Census or Marketing
    • In Excel 2007, multiplying 77.1 times 850 yielded 100,000 instead of the accurate answer 65,535—Accounting or Engineering
    • The Making of a Fly, a classic work in developmental biology, was listed on Amazon.com as having 17 copies for sale: 15 used from $35.54, and two new from $23,698,655.93 (plus $3.99 shipping)–Procurement
    • Finally, Airline Disaster on Autopilot—Safety for the Traveling Public

    This writer has authored books, articles, speeches, presentations, and blogs for many years.  Arguably, he can claim some experience as a writer.  Subject Matter Expert?

    In one instance, the ‘witch’ word won over my intent.  Did the technology cause this error?  Probably, as the goddess of Halloween is not something I typically pontificate about—not on my radar, so to speak.

    Humans can rule for the foreseeable future.  That is unless we seed to the technology.  Most importantly, algorithmic errors can lead to cataclysmic business and even life events.

    Finally, I spellchecked this blog before publication, and it caught the ‘witch’ word this time.  Go figure.

    How Prepared is Your Organization to Oversee the Digitalization Transformation?

    For More Information

    Please note, RRI does not endorse or advocate the links to other materials.  They are provided for education and entertainment only.

    You can contact the author more information as well.

    End Notes

      https://en.wikipedia.org/wiki/Spell_checker

      https://therrinstitute.com/wp-content/uploads/2018/10/Man-Machine-Codependency-September-22-2014.pdf

      https://therrinstitute.com/wp-content/uploads/2018/10/Big-Data-Revisited-December-15-2016.pdf

      https://consult2050.com/job-disruption-due-to-digitalization/

  • Culture Matters A Lot! Cultural Interactions Matter MORE!!

    Culture Matters A Lot! Cultural Interactions Matter MORE!!

    “Failures of culture have been the single biggest destroyers of value in the last five years,” states the former senior vice president of HR of Google in a recent article.  This revelation by one of the contemporary tech giants supports the previous dictum, “Culture eats strategy for breakfast.”  Depending on one’s perspective, this latter quote can be attributed to literature dating back to the mid-1980s.

    Regardless, the central role of culture in an organization has long been recognized.  One wonders, if this is true, why has so little changed in 30+ years?

    This writer is personally aware of three major cultural debacles by large publicly traded firms where shareholder value was destroyed through inter cultural challenges.  In one case, the ‘then’ acquiring firm was subsequently acquired itself in part because of a seemingly dysfunctional culture.

    The Inc. article goes on to describe three demonstrable risks management must attend to in their mitigation strategies:

    • The internal is now external—Organizational ecosystem employees/contractors/customers now have unfettered access to outside the ‘door.’ Constituent parties can use social media posts to comment about the good, bad, and ugly of an organization.
    • The data on culture shows clear economic impact—Case studies on culture are no longer ‘fuzzy’ and the impact of culture on the bottom line can now be documented.
    • People technology has advanced enough to help—Data and analytics enable organizations to develop a better understanding other their ‘workforce’ market constituency and develop strategies addressing their concerns and needs.

    The article concludes that culture is no longer a buzzword and organizations can leverage it to drive organizational alignment and behavior towards shareholder value.  Culture is now a measurable KPI.

    Care to benchmark yours?

     

    Cross Culture

    If one accepts the above premise, competitive value is created by the organization’s culture.  This is not a new statement and has been addressed by this author in various forums for years.

    Fundamentally, there are two types of cultural interactions:

    • Collaborative—Two or more organizations seek to work together to realize joint value. For example, the organizational ecosystem, i.e., suppliers and long-term customers.
    • Adversarial—Two or more organizations seek to realize value at the expense of others. Examples include competitors, government regulatory interactions, i.e., IRS or legal actions.

    Even an internal team is a composite of several legacy (organizational) cultures not to mention diverse ethnicity and societal circumstances.  It is this heterogeneous environment that the bottom line is ultimately impacted.

    This author began investigating cross-cultural engagement value (or lack thereof) in the era of Culture eats strategy for breakfast.  In any cross-cultural situation, the Relationship is the ultimate value developed, sustained or even lost.

    The R B C model describes a set of interpersonal Behaviors based upon a set of Conditions.  Behaviors are observable and describable (beware of observer bias) and Conditions can be equally known.  The Relationship(s) between parties are latent (not directly observed) and must be inferred.

    This inference is often the source of poor decision-making—the reason so many deals go ‘south.’  If the internal culture is now better defined, manageable and a bottom-line item, focus must be turned to intercultural engagements.

    Even as your organizational culture is more knowable.  Its relationship with other identifiable cultures is not.  If that were true, there might be fewer issues among parties.  One might even surmise; the divorce rate might be lower.

    At all levels, culture is an evolving construct.  Cigarette smoking is no longer publicly acceptable for many while marijuana consumption is.  Fashions come and go as well.

    Certainly ‘pop culture’ evolves rapidly.  Perhaps slower, but so do societal and ultimately business cultures.

    In this pundit’s opinion, successful inter-cultural engagements are the key to long term value—shared or otherwise.  The more the organization knows Who and What it is, the better it will be able to develop a ‘relationship’ with counterparts who know Who and What they are.

    Culture is the Food of Choice.  How is Your Organization Watching its Weight?

    For More Information

    Please note, RRI does not endorse or advocate this video and does not have a relationship with its producer and distributors.  It is provided for fun and entertainment only.

    You can contact the author more information as well.

    End Notes

      https://www.inc.com/michael-schneider/googles-former-head-of-hr-issues-a-warning-that-all-business-owners-leadership-teams-should-read.html

      https://quoteinvestigator.com/2017/05/23/culture-eats/

     http://www.stat.cmu.edu/~brian/905-2009/all-papers/Bollen-annurev.psych.53.100901.pdf