The Rapid Response Institute

Category: Project

  • Disrupting Disruption!

    Disrupting Disruption!

    Let me understate, ‘working in the petroleum sector has always been challenging.’  Now we find ourselves in a major economic downturn caused by a Covid-19 pandemic and aided and abetted by an international crude oil price war.

    Once again, many thousands have lost their livelihood and possibly not return to a similar job as the industry consolidates and restructures both organizationally and operationally.  However, much has changed and for the better since this writer first experienced a major retraction in the 1980s.

    Back in the day, choices then included sending hundreds of hardcopy resumes hoping the right person would find/like it out of an overflowing inbox or leave the sector and look for better pastures.  Collectively, impacted individuals tried both.  Certainly, there was not a feeling that we were in command of our destiny, even if we knew someone who could help us.

    Today, we are the Master and Commander of our voyage!

    I See Things

    Visions of armies of energy workers becoming software programmers are probably hallucinations.  Some might but many will not have the ability, temperament or interest in such a feat.

    There are always winners and losers in any disruption.  Already, there are signs that the traditional retail sales processes are accelerating on a path they were already on.  Upscale restaurants now feature ‘take out.’

    Some who once worked for manufacturers, oil producers and other core companies will most likely find new careers with suppliers to those firms.  This may be especially true of supply chain, business process and technologies such as IT and engineering.  For example, operators will look to Subject Matter Experts (SMEs) and qualified suppliers to implement their Digitalization business models.

    Those with technical skills such as Science, Technology, Engineering, Mathematics (STEM) will be in demand for both recall to older business models but more likely to enable new ones.  Other emerging energy sectors include renewables and their derivatives.

    Entire, global business models are under scrutiny and change is inevitable.  Older sluggish companies will be replaced with new agile entrants.  Just look at how Amazon evolved from an online book seller to their current position.

    How to Disrupt

    What if I want to strike out?  For those who feel alone and not sure which way to turn, there is help available right now!  As far as I know everything listed below is at no cost and RRI knows these resources directly—no third parties.

    • “Esri, the global leader in location intelligence, announced that it would provide free access to its ArcGIS platform and training resources to professionals worldwide who are impacted by work furloughs during the COVID-19 outbreak.
    • Do you have a great idea for an energy-based startup company, but not sure where to start? I am on the leadership team of the Global Energy Mentors and we provide free mentoring services.  Check us out and you do not have to reside in the Houston metro area!
    • Looking for help from the Small Business Administration and again, don’t know who to call? Let us know and will put you in contact with the Houston office.
    • There are other opportunities available where we can help you. For example, the BBL Ventures Energy & Industrial Tech Challenge and Eunike Ventures it’s Alliance Partners are seeking innovative technologies via our 2020 Technology Open Call.  There are others as well and to date, the Innovation and Acceleration sector remains active.
    • Got a quick question? Contact us for 30 minutes of free online/email consulting limited to the first 50 and perhaps more.  We know of numerous additional resources and hopefully can direct you.

    Moreover, almost anyone can develop an App about any subject or issue.  What’s bugging you for which there is NO App or other solution?  Guess what, you now the Subject Matter Expert in that field.  Search App Development for all manor of free or low cost tools and help.

    Changes of the magnitude discussed herein can be daunting but there is no reason for any of us to fail in this transformation.  When faced with few or no options in your current career environment—What do you have to lose?

    Why let this disruption control you?  You control it!

    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 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 on April 9, 2020.  The summit will be offered again soon.  Check it Out!!

    You can contact the author as well.

  • Tumultuous Decade: What’s Next for Oil & Gas?

    Tumultuous Decade: What’s Next for Oil & Gas?

    April 20, 2020 marks the tenth anniversary of one of the most horrific incidents in the upstream oil and gas sector—Deepwater Horizon.  In addition to the tragic loss of eleven lives, the sector forever changed.  Immediate restructuring of federal oversight resulted in the establishment of the Bureau of Safety and Environmental Enforcement (BSEE) and their subsequent Safety Culture Policy.

    The industry changed too.  One of the first efforts following Macondo was the formation of the Marine Well Containment Company.  Its mission is to rapidly respond to Deepwater incidents in the Gulf of Mexico.  Subsequent organizations are also positioned around the world.

    Moreover, the industry embraced Safety Culture and continues to improve based upon Systemic Safety Cultures across organizational ecosystems.  These processes are incorporated into Operations Management Systems that incorporate SEMS as part of Operational Excellence Initiatives.

    In 2014, the sector faced another slap in the face with the collapse of oil prices, yet again.  Now it is the double whammy of the Covid-19 pandemic coupled with the price war between Russia and Saudi Arabia.

    Darkest Before the Dawn

    Each time the industry is forced to retrench, it follows a predictable pattern.  Reduction in force (layoffs), corporate restructuring and turning to technology are among the most common steps.

    This chart from the Federal Reserve Bank of St. Louis shows the employment levels for the upstream sector since the early 1970s.  One can make the case that the level of employment in the sector is flat at best.  One likely cause is automation and the extensive use of information technology to manage the business.

    Note: This chart is current as of March 2020

    In 1970, the US population was a little more than 205 million.  Now it tops 330 million.  This supports a hypothesis that the per capita employment by the sector is decreasing.  We expect this to continue.

    The Digital Oilfield marches on with the advent of IT-OT Convergence, Digitalization, etc.  This process has been underway since at least the late 1970s with the advent of the first computerized data acquisition systems.  Likely, much longer if one considers for example, the invention of electric well logging by the Schlumberger brothers in 1926.

    Certainly, other technological advances have contributed as well.  The often maligned fracturing the rock traces its roots back the beginning of the industry (circa 1862).  Contemporary hydraulic fracturing was started by Halliburton in 1949 and shale ‘fracing’ by Mitchell Energy & Development Corporation during the 1990s.

    While we have not done the detailed research, historically oil companies have outsourced to engineering firms, IT companies and others that provide a service as opposed to full time employees.  Today’s disrupted employees may find better careers in the emerging sectors that support petroleum operations as well as other sectors.

    Schumpeter’s Creative Destruction is a work in ‘the patch’ today.  A lot has happened in the Deepwater Horizon incident.  Here’s to calmer waters this next ten years!

    How Are You Positioning Your Career to Capitalize on Disruption?

    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 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 on April 9, 2020.  The summit will be offered again soon.  Check it Out!!

    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.

  • Home Base During a Crisis: ‘get up, clean up, and dress up’

    Home Base During a Crisis: ‘get up, clean up, and dress up’

    In the middle of a global pandemic, all of us who can are advised to work from home.  Many of us have worked remotely for a while now.  Whether traveling, dealing with sick children, avoiding traffic or dealing with a natural disaster remote management has become part of our business DNA.

    Yet, this pundit was a bit surprised at some of the social chatter about working from home for extended periods.  After all, I have been working remotely for decades.  Turns out, these fears have a basis in fact.

    It appears there are two culprits at work here.  First is our individual behaviors and secondly, there are serious productivity concerns.

    First Culprit

    A day or two, here and their remote working is fine.  Things can change however; when it becomes a way of life and not everyone is well suited to labor this way.

    While it all sounds good on paper, working as an individual remotely is a difficult thing to do.  Humans are social beings.  Most of us need to interact with others; daily.

    The concept of working in my ‘underwear’ is not sustainable.  Like all aspects of life, a structured process is required.  First of all, ‘get up, clean up, and dress up.’  This is not the weekend where you check the odd email or holiday where you do the same on a beach with an umbrella drink.

    It is your job, the source of your income and often self-worth.  The risks to both of these is high when working remotely.

    While not directly on this topic.  This is one of the best videos on motivation and focus.  Well worth your time to view it.

    Working at home requires discipline as well as your ‘in office’ work ethic.  Challenge will be to sustain this effort.

    Second Culprit

    Some sectors such as Information Technology have encouraged its employees and contractors to work from home on a permanent basis.  This was long ago considered dogma.  Except that sometimes it does not work.

    In 2017, I noticed that IBM was ending its ‘work from home’ policy for many workers.  In their statement at the time, “In many fields, such as software development and digital marketing, the nature of work is changing, which requires new ways of working.  “We are bringing small, self-directed agile teams in these fields together.”  Has anything changed in less than three years?

    Further confirmation of this model can be found with most of the technology innovators and accelerators today.  Often accused of selling real estate these mostly for-profit enterprises claim that working together in a centralized environment encourages collaboration and cross pollination of ideas.

    This is the current common business model for start up organizations around the world.  In the minds of many, it must work and add value to the creative process.

    Another New Normal

    Is this a paradigm shift or just a short term inconvenience?  Reality, probably a bit of both.  E-learning has been growing and this may give that sector a boost.  Software development, the presumed online job, maybe not so much.

    While it is likely that Structural Dynamics are at work the current covid-19 situation.  Our Relationships, Behaviors, Conditions (RBC) model is a useful tool going forward.

    We are changing your blog model for the near future and will be developing this issue in more detail and offering actionable solutions.   In subsequent posts we will develop this further.

    In the meantime, if your challenged by the requirement to work remotely contact us for no cost, no obligation mentoring.

    How is Your Organization Assuring Productivity Remains During the Crisis?

    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

    You can contact the author as well.

  • To KISS or Not?

    To KISS or Not?

    According to legend, the term KISS or ‘Keep It Simple, Stupid’ was coined by Kelly Johnson, lead engineer at the Lockheed Skunk Works and noted by the US Navy as early as 1960.  Subsequent phrases such as ‘Less is More’ followed.

    At first glance, it makes sense not to overly complicate a product, process or project.  Certainly, a non-technical audience such as senior management will need to the issue and risk management strategy explained in terms they understand.  However, in our search for Red. Yellow, Green ratings are we overly simplifying complex environments?

    Albert Einstein is created with saying, “Everything should be made as simple as possible, but not simpler.”  This begs the questions, where is that line and how do you know if you’ve crossed it?

    One of the mantras of the High Reliability Organization Mindfulness is, Preoccupation with Failure.  This is not defined as with Normal Accident Theory, where failures are inevitable.  Rather, it is an understanding the modern complex systems one must be resolute in one’s focus on operational issues and rapidly move to normalize out of limit situations.

    In 2016 (and earlier) we made the case that after the Ebola outbreak in Dallas, the Public Health sector was resilient and that issue was contained quickly (links to all three parts of this series provided below).  In this writer’s opinion, this was not possible if the process was ‘worked’ at a too simple level.  Lessons learned from that and other contagion incidents may be useful combating Coronavirus Disease 2019 (COVID-19).

    The overused phrase, “failure is not an option” is the root of contemporary Operational Excellence business models.  In fact, failure happens but mitigating its impact and rapidly recovering are the hallmark of successful organizations.

    The graphic is a fractal.  From the Fractal Foundation, “A fractal is a never-ending pattern.  Fractals are infinitely complex patterns that are self-similar across different scales.  They are created by repeating a simple process over and over in an ongoing feedback loop.  Driven by recursion, fractals are images of dynamic systems – the pictures of Chaos.  Geometrically, they exist in between our familiar dimensions.  Fractal patterns are extremely familiar, since nature is full of fractals.  For instance: trees, rivers, coastlines, mountains, clouds, seashells, hurricanes, etc.”

    Our world is a complex place.  Processes and technologies must deal with that fact.  Successful risk management strategies must take Einstein’s wisdom into consideration.

    Does Your Organization Have a Robust Enterprise Risk Mitigation Strategy?

    For More Information

    The Three-Part Series Referred to in this blog:

    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

    You can contact the author as well.

  • Hanging App?

    Hanging App?

    By one measure, the US presidential primary season is off to a rough start.  In a small state, counting the ballots became a challenge.  Wasn’t technology supposed to solve the problems of past confusions?

    Yet the mechanism seemingly failed—again!  How is this different from the Boeing Max 8 disaster?  In one sense it isn’t.

    Disclaimer:  The only information this author has on the recent electoral IT problem is publicly available and he is not aware of anyone involved in that process that he may know personally.  This piece is only an opinion about a technology issue.

    Technology Adoption Process

    App developers strive to get to MVP as rapidly as possible.  Wikipedia defines a Minimum Viable Product as, “A version of a product with just enough features to satisfy early customers and provide feedback for future product development.  Gathering insights from an MVP is often less expensive than developing a product with more features, which increases costs and risk if the product fails, for example, due to incorrect assumptions.”

    Speed is of the essence in software development.  Yet, a rapid time to market should not sacrifice adequate analysis and assurance the software is robustly ‘stress tested.’

    Apps are moving from simple tools designed to call an independent driver of transport or order a burger.  They are now integral parts of enterprise solutions with broad implications if they fail.  This changes the fundamental project development process and benchmarks for release.  This is true for all App developers, even if their employee base is one or the development process is outsourced entirely.

    Release Maturity

    Most new technologies start is some’s ‘garage.’  Whether Steve Jobs’ or 3M, the processes are ad hoc and getting a so-called ‘Alpha’ product is the goal.  Those third parties who accept and test it know their risks and exposure.  Such customers would never use that release in a production environment.

    Other maturity models include Technology Readiness Levels (TRLs) by NASA and the European Association of Research and Technology Organisations.  At a minimum, testing must assure it is fit-for-purpose and that the product can ‘scale’ to meet the expected demand.

    Technology vendors to ‘critical infrastructure’ sectors such as oil and gas often express exasperation at the sometime slow take up of new solutions.  Individuals that take excessive risks deploying new technology may literally be putting their career at risk as well as their critical processes.  Therefore, they tend to be risk averse.

    There are many examples of what not to do rolling out new technology.  This month’s primary election is just the latest.  The adage, ‘no one wants to make the front page of The Wall Street Journal’ has a lot of truth to it.  Make sure you and your customer get media coverage for the right reasons.

    How Do You Know Technology is Ready for Enterprise Wide Deployment?

    For More Information

    Please note, RRI does not endorse or advocate the links to other 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

    You can contact the author as well.

    End Notes

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

      https://therrinstitute.com/critical-infrastructure-sectors/

  • 10, 20, 30, 40, 50 or More!

    10, 20, 30, 40, 50 or More!

    The advent of 5 G so soon after 4 G—Humm.  What’s next?  How many G’s are there?

    In 1965, Gordon Moore put forth the construct that the density of transistors in integrated circuits doubled each year.  The so-called Moore’s Law has governed technology growth ever since.  However; over 50 years later, some argue that we may be far up that power curve.  One conjectures if the latter statement is correct.

    In 1899, Charles H. Duell then the Commissioner of US patent is purported to have said, “Everything that can be invented has been invented.”  Mr. Duell died in 1920 so he missed many of the ‘new’ things we now take for granted.

    Marketers tend to categorize in buckets; Boomers, Gen Xers, Millennials and so forth.  Do any of these labels matter?  Probably not.  The same is true for technology tags as well.

    Life, technology, knowledge et al marches on, just like it has throughout human history.  Will we see the advent of 50 G networks?  Most likely; with 100 G hot on its heels!

    Less we forget, the current version of the cell phone (iPhone and its equivalents) was first released in 2007.  Much has changed in the last 13 years and we can expect that arc to continue with disruptive new mobile technology crashing in at some point.

    Agility

    Most think of an ‘agile enterprise’ as information technology driven.  In this writer’s opinion, this is a narrow perspective.  The word ‘agility’ is defined in terms of power and thinking.  In other words, the ability to make good decisions with the capacity to implement them.

    In this hyper-technology environment, it is not the adoption of a particular rendition, but the capability to incorporate the appropriate new in an economic manner.  This is true whether the organization is an ‘early adopter’ or even a ‘laggard.’

    For decades, organizational strategy has been enabled by technology.  There is no reason to change that model with many G’s to follow!

    How Does Your Organization Ingest New Technologies?

     

    Enjoy this flash back to the 1960’s.

    For More Information

    Please note, RRI does not endorse or advocate the links to other 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

    You can contact the author as well.

    End Notes

      https://en.wikipedia.org/wiki/4G

      https://en.wikipedia.org/wiki/Moore%27s_law

      https://www.dictionary.com/browse/agility

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

  • 2020 Vision: Are Your Stars Aligned This Year?

    2020 Vision: Are Your Stars Aligned This Year?

    Depending on one’s perspective, 2020 is either the end of the last decade or the beginning of this one.  One can argue that our actual birthday is the day we were born and 12 months later we are one year old.  This suggests that on our tenth birthday we have lived a decade and a new one begins.  Probably this conundrum will still be a subject of discussion in 3020.

    Going to our favorite breakfast cafe the Sunday after New Year’s Day, the parking lot was overflowing from patrons of the local gym in the strip center.  New Year’s resolutions in full force.  History suggests we will not have a parking problem by sometime in February.

    Another Failure of Change Management?

    Perhaps, but good intentions without an execution plan and realistic metrics play a role too.  Clarity of vision is important during times of transformation.

    Organizational lucidity is also important.  The annual Letter from the Chairman of every US public company will extol virtues for their coming fiscal year.  Note to those in sales—this is what is important to management, i.e., the organization’s value proposition so read it and act accordingly.

    Vision Duality

    We all have a vision about the future of our career.  However, another vision is emerging—machines.  One topical subject is the so-called Digital Twin or a representation of reality as a 3D graphic.

    This pundit and others have espoused this tool in support of Operational Excellence initiatives.  This extends human vision in ways that were not available in the past.

    One can surmise as this year progresses, clarity in operations may get much better.  It follows that those willing to take advantage and ‘change’ how they see the world will progress faster and farther than those who choose not to.

    Is the Future in the Stars?

    Probably, but not as many astrologers would have us believe.

    Stars will align this year for each individual who takes the initiative to make that happen.  Not astrological destiny, but proactive leadership with new ‘star’ management systems.

    The Year is Almost Three Percent Old, What Have You Done So Far?

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    Please note, RRI does not endorse or advocate the links to other 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

    You can contact the author as well.

    End Notes

      https://www.farmersalmanac.com/new-decade-2020-or-2021-100900

  • Reflection: Are We Near a Digital Tipping Point?

    Reflection: Are We Near a Digital Tipping Point?

    Generally, this time of year humans are wont to look back on the closing year and assess the good and the bad, and dare I say the ugly?  We celebrate successes, review the not so successes, and what is left undone.  This process prepares us for the New Year’s resolutions that are often then broken.

    Today, we will see lots of stories on the accomplishments of the year, notables that passed from this life and other celebrations and questions about the waning hours.  In this piece, let us ask another question.

    The subject of the Man—Machine relationship has long been the subject of comment and speculation.  It remains so.  Where are we along this path?

    But as the march on a continuum towards the future, it is time to assess the level of Maturity of our Operational Excellence as a function of IT-OT.

    Challenges remain.  Recently, the Boeing’s Starliner space vehicle failed to reach its planned orbit.  The glitch is apparently in the capsule’s clock where a programming error misinterpreted the stage of the mission.

    News media reporting suggests that if astronauts had been on board, they may have been able to override the system and correct the problem.  This is an area we have addressed herein on several occasions.  When does the human act?  Recent articles include:

    The decision model whether to override the computer remains elusive.  Likely, it will for some time.

    In this writer’s opinion, it is currently difficult to develop an appropriate governance model for this emerging man-machine interface.  That said, the task is upon society and individuals and organizations must proactively engage.

    Not Just Digitalization

    There is much ado about the promise of digitalization and speculation about its ability to be a game changer.  One wonders how any technology available to all warrants such status?

    Since the advent of the Turing machine, circa 1936 and its enablement of the winning of Word War II (at least in Europe), there has been a level of trust in information technology that is not always warranted.  Today, how many of us will sit with our children in the backseat of a driverless automobile?

    Human factors must be considered when new technology models are put forth.  After all, humans still govern, right?

    Maturity Assessment

    Building on the CMMI and our own maturity model development methodology we put forth a set of constructs.  Beginning in 2004, when we released our Roadmap study.  It was one of the earliest, if not the first industry wide assessment of the so-called digital oilfield and guide for organizations to transform themselves with this enabling technological model.

    As part of that study we posited a maturity model that still has applicability for heavy industry and its use of information technologies to manage the business.  An updated version is shown in the following figure.

    For many organizations, Level 3 is satisfactory and accomplished the required.  One can argue that an airline autopilot would be at least Level 4.

    The current issues Boeing has with is space capsule and 737 suggests that may not be the case.  By the way, this is not limited to this manufacturer, others have similar issues as well.

    In the opinion of this writer, as a society we are at best Level 2 when it comes to digitalization.  What do readers think?

    Paraphrasing a famous election cycle quote, “It’s the software, stupid.”  Are we near a digital tipping point?  Perhaps not.

    Much work is yet to be done.  Fear not for the robots taking your job—at least for the moment.

    What is Your Digitalization Management Maturity Level?

    For More Information

    Please note, RRI does not endorse or advocate the links to other 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

    You can contact the author as well.

    End Notes

      https://www.space.com/boeing-starliner-oft-fails-to-reach-correct-orbit.html

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

      https://therrinstitute.com/maturity-models/

      (2004, September). Roadmap to Enterprise Optimization: A Guide to the Impact of Information Driven Field Operations on the Petroleum Corporation.

      https://www.popularmechanics.com/flight/airlines/a26854898/plane-automation-crashes-incidents/

  • Safety Santa: Another Case of Operational Excellence Success

    Safety Santa: Another Case of Operational Excellence Success

    A year ago, it was the pleasure of this blogger to report that Santa Clause completed yet another successful global fulfillment process AND importantly, the process was in compliance with the US Federal Aviation Authority’s (FAA) regulations.  A great deal of progress since the advent of one red light on the nose of the lead reindeer!

    This year we are once again pleased to report that not only have the flying sled and its power plants remained in compliance with the FAA but has now taken additional steps forward.  Incorporating new technologies and processes, safety has been enhanced in the following manner:

    • Addressing Slips, Trips and Fails with new safety/skip proof landing gear
    • A new Confined Space program along with appropriate personal safety gear
    • An alarm Klaxon and Better Lighting
    • Enhance Safety Restraints such as airbags and an overhead guard
    • Extensive Head, Vision, and Hearing Protection systems
    • Better Work Place Violence technology enabled processes
    • A new Cargo Restraint system

    It looks like the arctic region of the Occupational Safety and Health Administration (OSHA) outreach program is having great success.  Interested readers are invited to review the above safety Infographic for further details and perhaps new insights.

    Simplified Business Model

    There are a lot of lessons herein for those who don’t live at a mythical north pole.  First, it seems that much if not all the safety improvements made are inexpensive and easily implemented.

    Next, change management and new policies appear to be welcomed by those affected.  Answering the, “What’s In It For Me” question when adopting new technologies.

    Management is also ‘walking the walk’ with employees by driving the sled and taking the same risks as the rest of the team fulfilling customer requirements, i.e., snow covered rooftops and chimneys.  One can argue that this entire team is the Customer Facing part of the system.  Finally, customers have high expectations that must be met, and late delivery is not an option—this project has a fixed deadline!

    Stakeholder Value

    With billions of children waiting and using a complex and global logistics system, this team does not disappoint.  Earlier competitors have long dropped off the map.

    So why with a clear monopoly does this organization still seek greater Operational Excellence with its transformational Safety Culture?

    Simple—safe and excellent operational performance is good business!  Less unplanned downtime increases the bottom line.  Few incidents increase morale and the bottom line.

    Fewer legal issues, regulatory matters, and so forth and so on positively impact the bottom line.  With such significant ROI, what’s a stakeholder not to like?

    Is Your Operational Safety on Par with Ole Saint Nick?

    For More Information

    Please note, RRI does not endorse or advocate the links to other 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

    You can contact the author as well.

  • Lessons in Servant Leadership: What Did You Say?

    Lessons in Servant Leadership: What Did You Say?

    Watch almost any media talk show and the interviewer will often interrupt the guest trying to answer the question just posed.  This is such a common phenomenon that it is accepted behavior perhaps driven by ratings that come from on-air confrontation.  It is part of the culture!

    Why ask the question if you’re only going to impose your view in the middle of an answer?  Perhaps guests are just convenient foils.

    When briefing senior management, colloquial wisdom is to get to the point quickly and succinctly.  Words to live by and often put forth by this pundit.  Yet it is amazing how many of us violate the axiom by continuing to talk.

    Truly listening with all senses is a rare skill.  How often have we been in a situation such as a sales call when the customer is interrupted by members of the sales team?

    It is more difficult to close a deal when the preconceived notions of the seller override the buyer’s response.  Often in such a situation the client’s body language will give a clue as to her irritation when ‘talked over.’

    The Power of Listening

    So, you have made your pitch and are now sitting quietly waiting for the client to respond.  However, the so called ‘pregnant pause’ ensues.

    The overwhelming desire is to ‘jump in’ and say something to break the silence.  But how does that close a deal when an offer has just been made?

    Such behavior usually results in either prolonged negotiation or no deal.  The human inclination to talk can be irresistible.  A better behavior is to shut up and listen!

    Some research shows that good listening is beneficial to both employees and their organizations.  However, barriers to better listening include:

    • Loss of Power—The appearance of weakness or not in control of the situation
    • Takes Time and Effort—Daily time pressures may negatively impact on the work product
    • Fear of Change—The speaker must refrain from making ‘foregone conclusions’ until a response is articulated

    In addition to certain listening skills, a good listener must have the ‘intention’ to become one and resist the urge to interrupt.  This can become the framework for real dialogue and exchange of ideas and information.

    Getting to Yes

    In a TEDx Talk, the coauthor of the negotiation book, Getting to Yes discusses the value of listening in any human interaction.  The investment of less than 16 minutes of your time will be enlightening.  One suspects the almost 900,00 viewers would agree.

    Our inherent nature to ‘rattle on’ distracts us from our goals.  We recently discussed the value of understanding the difference between Wants, Likes and Needs.

    Truly listening and understanding your counterpart’s feelings (or deeply personal Needs) will unlock the key to getting a deal done—Yes!  This is a major component of  servant leadership.

    R B C

    Human (B)ehaviors in certain situations or (C)onditions establish (R)elationships between two or more parties.  We have been extending this construct for almost 25 years and it has broad applicability.  What kind of Relationship is established if one or more individuals do not listen to others?

    How Well Do You Listen to Your Colleagues and Family Members and Do They Listen to You?

    For More Information

    Please note, RRI does not endorse or advocate the links to other 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

    You can contact the author as well.

    End Notes

      https://en.wiktionary.org/wiki/pregnant_pause

      https://hbr.org/2018/05/the-power-of-listening-in-helping-people-change

      https://therrinstitute.com/want-like-need/

  • Running Across an Open Field: Strategy for Disruptive Technology?

    Running Across an Open Field: Strategy for Disruptive Technology?

    Several weeks ago, as an amateur history buff, I was watching a documentary about World War I.  During one segment the commentator discussed the apparent fact that if soldiers refused to charge out of their trenches across an open field into the teeth of waiting machine guns they would be shot.

    The brutality of such a command by (so-called) leadership is appalling.  It may have been one thing for Alexander the Great’s armies to engage in open battles with sharp pointed objects as weapons.

    It is quite another for General Pickett’s infantry at Gettysburg to charge cannons and 50+ years later to repeatedly try the same tactic (by both sides) at horrific costs.  Generals always fight the last war, so the saying goes.

    This blog is not about some of history’s follies, it is about learning so as not to repeat the mistakes of others.  These lessons apply to readers’ daily business world as well.

    When New Technology is Deployed

    New disruptive technology can tear the societal fabric.  Some old jobs and companies disappear, and new ones thrive.  This process has been repeated since antiquity.

    Our culture is having this dialogue today regarding digitalization and its suite of technological driven change, i.e., Blockchain, AI, etc.  Principal issues that must be addressed include Human Factors Engineering (HFE).

    “HFE places the human operator at the center of the complex operating environment.  HFE recognizes that this individual or set of individuals is the puppet master and is responsible for the entire show.”  In other words how do we interact with the new technological reality.

    Reliable and valid HFE is the key to successful digitalization initiatives.  It will be the vital to whatever is next as well.

    Tyranny of the Minority

    From political science, “For centuries, theorists have worried about the potential of unrestrained democracy to lead to a tyranny of the majority, in which majority groups ride roughshod over the rights of minorities.  What we often see today is instead a kind of tyranny of the minority: a system in which a particularly extreme and motivated fraction of the populace can wield outsized power in the face of a majority which is either too indifferent or too scared to oppose it,” (italics added).

    In most organizations, there are fewer leaders than those who fabricate a ‘work product.’  The responsibility of leadership is to set the vision, mission and goal as well as enabling the organization with the tools and support necessary to reach targeted stakeholder value.

    But what if this minority group is the slowest to come to grips with disruptive forces?  In the face of newness, they may ‘keep doing what they have always been doing.”  In such an environment, the organization will likely not reap the same reward as in the past.

    Does too indifferent or too scared describe your organization’s ecosystem workforce?  One suspects It would be good to know.

    Fast Fail

    In our last blog we discussed the rapid assessment of technology and when to drop it if it does not appear to be working out.  Perhaps, we should treat managerial processes the same way.  After a horrific and visible failure in leadership, conceivably one preserves best by looking for alternative?

    If charging head long across an open field leads to disaster, why keep doing it?  While a counter argument might be that we had no tools to defeat those equipped with the new technology, to this writer, that logic is suspect.

    Flanking an enemy’s line or using guerrilla tactics, et. al. are as old as human confrontation.  Unconventional warfare has a long record of documented success.

    The business lexicon is loaded with military terminology.  We often speak of business as if it is warfare, when of course it is not.  There are lessons to be learned about human and organizational behavior, however.

    Decades ago, the concept of Guerrilla Marketing was the rage.  With the advent of social media, it has advanced, and the methodology is available to all.  Huge budgets and massive media campaigns are no longer necessary.

    Head-to-Head the biggest ‘guy’ usually wins.  So, if you’re not him/her, DON’T DO IT!!  However, the small mammals may displace slow moving dinosaurs.

    Agile is not an IT term.  It should be the state of mind of leaders at all levels.  To charge across the open business landscape into technology designed to destroy your organization remains folly.

    How Are You Leading the Charge into the Future?

    For More Information

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

    See this 3:15 minute clip for more information on living in a World War I trench.  Pathetic way for leaders to force those under their command to live.

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

    You can contact the author as well.

    End Notes

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

      https://therrinstitute.com/wp-content/uploads/2018/10/HRM-in-Process-Industries-Sustained-by-Human-Factors.pdf

      Ibid.

      https://areomagazine.com/2019/04/02/the-tyranny-of-the-minority-and-how-to-prevent-it/

      https://therrinstitute.com/lessons-from-the-seventies/

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

  • 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

  • Want – Like – Need

    Want – Like – Need

    Years ago, as part of a never-ending series of company reorganizations, a team of our change management consultants headed to the ‘field’ to interview users.  Upon their return, they presented an extensive list of technology investments deemed necessary to remain competitive.

    Their list focused on technology and not business concerns.  Wondering, I asked who they interviewed.  Proudly, they proclaimed the “field engineers.”  When queried–did they talk with district managers, regional engineers and others with P&L or other managerial responsibilities, the answer was “no.”

    This very expensive process by a major professional services organization simply generated a wish list of junior employees.  It was what they thought they WANTED.

    In our current jargon, “cool stuff.”  Needless to say, none of these projects were funded.  Wasted time and money by those not familiar with our business!

    Today, we are driven to LIKE everything!  CRM systems demand input before we have even procured the product or service.  Log on to any given website and the request to complete a survey will hit you before you read the first line.  Five stars or thumbs-up emojis appears to be the goal.

    Do wants and likes add value?  Perhaps a like is a statement of preference, but perhaps the consumer wants the digital driven question to just go away without the hassle of someone begging for a higher ranking like.  Fibbing to surveys has become a national pastime.

    Business should be most concerned about what a prospect or returning customer NEED.  What pain point or problem does your product/service solve?  If you can’t answer that question, no amount of wants and likes will add to your bottom line.

    I may want a hamburger and go to a fast food restaurant with lots of likes.  However, if I am in a hurry and their preference is clearly to move cars via the drive-through faster than those of us waiting inside, my need to eat quickly will not be met.  I may leave without my meal or most likely not respond to a survey seeking likes.  Then never return!

    That lost customer will never surface in any analysis—not even one star.  Enough of those responses and the business will be in jeopardy and management my not even know why.  Collecting likes should never be a Key Performance Indicator (KPI).

    Finding the Pain

    In a recent Global Energy Mentors leadership meeting, an investment group recounted their business model as one that focused on identifying organizational ‘pain’ points.  Once a specific pain was articulated, the search for new technologies that would address/resolve that pain was undertaken.

    This model flies in the face of Steve Job’s, “A lot of times, people don’t know what they want until you show it to them.”  That may be and sometimes unknown needs are uncovered.

    However, in critical infrastructure sectors where failure is not be an option because it can be very expensive solving a known need is usually most important.  Without exception, this entrepreneur’s success has been focusing on addressing industrial client known pain points.  As an example, our EVPM modeling process demands input from customer groups.

    In this blog series, we have referred to successful change management that comes from addressing the—what’s in it for me question.  From a customer perspective; freeing ‘me’ from known pain is often more valuable than alleviating pain I did not know I had.

    Does Your Value Proposition Solve a Need, Address a Want, or Simply Generate a Like?

    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

      http://globalenergymentors.org/

      https://www.helpscout.com/blog/why-steve-jobs-never-listened-to-his-customers/

      https://therrinstitute.com/brand-your-digital-oilfield-culture-internalize-its-transformation/

  • 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

  • Chain of Custody: Is Your Management System Ready?

    Chain of Custody: Is Your Management System Ready?

    “This eliminates the possibility for human error.”  This is an actual quote taken from one of the many blockchain ‘credible’ websites readily available—citation withheld to protect the guilty.    And, the Titanic was unsinkable!

    From another credible sources, “Is blockchain secure for my business?  Simply put, it can be.  But, not by just turning the key.  Security will depend on a variety of factors, none sic (not) the least of which requires a robust risk management framework?”

    In their white paper, KPMG argues that while the current blockchain frenzy is focused on the new technology, the question of its applicability to a business solution remains elusive.  Falling in love with a ‘shiny new software object’ has been seen before.  Most recently, digitalization and IoT.

    The organization’s economic buyer requires more depth in the decision-making process.  Has a valid Business Use Case been developed for its implementation?  This can be a time-consuming activity as the various constituencies must be queried to assess their assessment of the Economic Value of this CAPEX.  Unfortunately, there are no shortcuts to this risk mitigation process.

    This blogger has focused on the need for Governance and appropriate Management Systems for many years.  Historically it has been a challenge for business and government entities to keep up with the explosion of technology.

    While third parties are often the weakest link in supply chain management and this is one of the problems that Chain of Custody solutions address, technology alone is not a solution.  As with any transformational initiative, the broader impact, unintended consequences as well as other tangible and intangible exposures must be understood and managed accordingly.

    Just for the record, human error can never be eliminated.  It is human folly to believe that a technology can free us from our human nature.  High Reliability Organizations (HRO) recognize this frailty and respond accordingly.

    The promised of today’s technology suites can be of high value.  History teaches us that this value may not be realized if the problem being addressed, their implementation and sustained (maturity) processes are inadequately formulated.

    How Will Your Organization Assure It Will Realize the Value from Blockchain Investments?

     

    https://advisory.kpmg.us/articles/2017/securing-the-chain.html

    Shemwell, Scott M. (2018, October). How to make the case to the C-Suite: Selling Large Scale Data Management Projects to the C Suite. Foundations: The Journal of the Professional Petroleum Data Management Association. Volume 5 Issue 2. pp. 6-8.

    https://sceweb.uhcl.edu/helm/RationalUnifiedProcess/process/modguide/md_bucm.htm

    https://therrinstitute.com/economic-value-proposition-matrix/

    https://therrinstitute.com/are-organizational-governance-models-broken-why-cant-management-get-a-handle-on-things/

  • Man—Machine: Extension or Versus?

    Man—Machine: Extension or Versus?

    Are the emerging machines our friend or foe?  The debut of new technologies such as Artificial Intelligence (AI), Internet of Things IoT) and a host of others seem to be drowning us as we drink from a technological fire hose.  Additionally, driverless vehicles, the Gig Economy et al. are conspiring to eliminate truck drivers and full-time jobs.

    Politicians lament this progress and promise, guaranteed basic income and re-training designed transform energy extraction employees into 50 something coders.  Recent college grads are told their (high debt) degrees are worthless and others advised not to seek higher education.  What in the world are we to do?

    Well one learned, well known observer has a plan.  Fortunately, a cinematographer has captured it in the following clip.  A little over a minute long.

    https://www.youtube.com/watch?v=W97RmQCnwa4

    Well, maybe Chicken Little is not the best source for guidance.  But again, it does look like aliens played a role.  Perhaps, these new machines are really alien inspired!

    In our real world, the ‘only constant is change’ and barring a meteorite hitting one on the head, if not embraced change needs to be tolerated.  Since this writer graduated from college in 1970 prepared to enter the nuclear power industry (we all know how well that sector fared), several new (then unknown) industries now employ millions across the globe.  Including, me!

    To be sure other sectors have shrunk and even disappeared.  Most employed by those sectors had to adapt to a new business climate.  Many thrived—some did not!

    There is no doubt that individuals need to remain flexible and ‘skill relevant’ in a fast-paced market.  This was true 100 years ago and likely will be so in another 100 years.

    It Can Be Done

    3M Corporation, formerly known as the Minnesota Mining and Manufacturing Company was founded in 1902.  Initially, it provided heavy industrial products such as sandpaper.  A need for innovation was identified early in its history due to quality issues.  The firm has evolved to one with a global footprint that sells a wide variety of industrial and consumer products.

    The company has codified its Innovation Culture—”Employing the Thirty Percent Rule, 30% of each division’s revenues must come from products introduced in the last four years.  This is tracked rigorously, and employee bonuses are based on successful achievement of this goal.”

    This Agility evolved from the founding of a heavy industrial firm that started innovating early.  This and other success stories suggest than NO firm and NO employee/supplier need fear even dramatic change.  Adapt YES, give up NO.

    Are the emerging machines our friend or foe?  I guess the answer is, “It depends.”  Just like it has been since humans invented fire and found a stick to clobber something/someone with.

    President Theodore Roosevelt is credited with saying, “Keep your eyes on the stars, and your feet on the ground.”  Likely, the sky will not fall.  More likely we may be hit by Isaac Newton’s (inspirational) apple.

    Is Your Innovative Sky Falling or Is What’s Hitting You Really a Golden Apple?

    For More Information

    This subject is touched upon by this blogger herein and in other venues.  Readers are invited to review these materials with particular attention to Job Disruption Due To Digitalization: Myths And Legends—June 1, 2019.

    In the research for this blog, several versions of the Chicken Little animation were found.  In your spare time, you may find several of them very amusing.

    Please note, RRI does not endorse or advocate these films and does not have a relationship with their producers and distributors.  Provided for fun and entertainment only.

    You can contact the author more information as well.

    End Notes

      https://en.wikipedia.org/wiki/3M

      https://hbr.org/2013/08/the-innovation-mindset-in-acti-3

      https://www.brainyquote.com/quotes/theodore_roosevelt_136001

  • Houston . . .

    Houston . . .

    “The Eagle has landed,” and fifty years ago mankind had accomplished the heretofore seemingly impossible.  Two men on the moon became a game changer and not in just the way most believe.

    Yes, technology advancement owes much to these early space pioneers traceable to the 1950s; realistically a long process going back much further.  Aerospace led innovation has ‘bled’ into all aspects of our 21st Century life.

    The challenge going forward—what is the next ‘small step that will lead to one giant leap.’  Return to the moon or even humans on Mars is not the next step for humankind in this writer’s opinion.  It seems that technology can readily enable those milestones; it is just a matter of spending and will power.

    Blue Marble

    As the astronauts on the moon looked back at earth, they saw our ‘blue marble;’ tiny in the cosmos.  The place we all call home is just a spec of dust in the overall physical universe—whose bounds (if they exist) have not yet been discovered.

    Explorers have always pushed the limits of the known.  Whether sailing towards the end of a ‘flat’ earth or sending robots out of the solar system (Voyagers I & II), learning about the unknown, albeit sometimes terrifying is integral to the human condition.

    In 1969, the information age was in its infancy.  One can make the case that the modern computing era began with the hypothetical Turing Machine in 1936.  However, computational power was centralized and only available to the very few.

    As a college senior majoring in physics (1969-70), I was one of a handful who had access to a time-sharing system sixty some miles away in Atlanta, GA.  Programmed using the then ‘new’ BASIC (Beginner’s All-purpose Symbolic Instruction Code)—this was state of the art.

    Communications time was expensive, so we wrote our programs and transferred them to yellow tapes used to program the distant computer.  Only then did the iterative ‘debugging’ process begin.

    The 1960s and early 1970s saw the rise of the minicomputer and other independent devices that would become the so-called IBM Personal Computer popularized in the 1980s.  The current computing device technology of choice is over 12 years old—iPhone and its competitors.

    Some argue that this platform is aging, yet has the next stage been identified yet?  The current rage, Big Data, AI, etc. are but applications and database schemas.  Game changing compute power is not yet mainstream.

    Enterprise Digitalization is also a craze.  Transforming mere mortal organizations into future juggernauts that promise to change businesses if not humankind.  As with the Space Race of the last century, technology fallout and new ways of living will most like result in the year 2069 looking a lot different than the present.

    Neil Armstrong made an interesting comment when he said, “One small step . . . “  The late comedian Eddie Cantor is credited with saying, “It takes 20 years to make an overnight success.”  That is one heck of a lot of small steps!!

    “A journey of a thousand miles begins with a single step”

    – Lao-Tzu.

    The computing sector is no longer in its infancy.  It could be that the next fifty years will become the century of something else.

    In any event, we did not get to the moon overnight and we most likely will not arrive at our next major milestone by leaping either.  Focus on your daily steps and who knows where your life long journey will take you.  Go ahead and step off the last rung of your ladder.

    How Will Your Next Small Step Become a Game Changer?

    For More Information

    You can contact the author more information as well.

    End Notes

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

      https://www.businessinsider.com/infographic-how-computing-power-has-changed-over-time-2017-11

      https://www.brainyquote.com/quotes/eddie_cantor_309843

      https://www.libertyforrest.com/blog/2015/9/13/a-journey-of-a-thousand-miles

      https://www.techopedia.com/definition/13429/turing-machine

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

  • Oil: In the DNA of the Silicon Valley

    Oil: In the DNA of the Silicon Valley

    When discussing the likelihood of DNA in crude oil, one source comments, “So the DNA they are talking about is like the DNA, where they’re looking at the live bacteria in the crude oil, which would be descendants of the bacteria that was around when the oil first began its degradation from organic material.”

    Time passes and the Baby Boomers that led the youth movement in the last half of the 20th Century may now be carrying the label of dinosaurs.  Likewise, the oil and gas sector is viewed as a mature sector, aka dinosaur.  And we all know that oil comes from dinosaurs (not a correct statement).

     

    [advanced_iframe securitykey=”ab3c8c693bafe5b2e240e6d4c1357a8337af1276″ use_shortcode_attributes_only=”true” src=”https://www.youtube.com/embed/vAA7wVYr704?t=15″ width=”100%” height=”600″ id=”advanced_iframe” ]

     

    However, few know the technology lineage of the sector.  Fewer still know about its long-time leadership in the advancement of information technology.

    As a Schlumberger Senior Field Engineer (circa 1977) in Houma, LA, I worked on the first electric logging truck equipped with a computer—the Cyber Service Unit (CSU) for wellsite instrumentation.  Effectively, this was a mobile real time data acquisition and analysis system.  This was a short two years after the company joined ARPAnet, the predecessor of the Internet.

    Likewise, the other major energy services company Halliburton has advanced dramatically over its 100-year history.  Furthermore, in the field of data processing, the sector was an early adopter of super computers.

    In the early 1980’s this pundit often made sales calls selling industrial technology.  With almost no base business in Austin, Texas, I saw little chance to make my quota from that city.

    In 1987, Schlumberger Ltd. opened it Austin Technology Center.  While not the first technology company with operations in that region, from this author’s perspective this commitment was a game changer for that region—so called ‘Silicon Hills.”

    The sector has long funded technology development.  As noted, a prodigious consumer of advanced technologies, the sector also invests in innovation.  One example, the seemingly never-ending thirst for Saudi (oil) money by the Silicon Valley investment community.

    Next time you hear that the era of fossil fuels is over, think again about the contribution the sector has made and continues to make to the so-called future technologies.  Could be that the technological basis of green energy is built on this 100-million-year-old organic molecule.

    Is Oil in Your Organization’s DNA?

    For More Information

    Contact the author more information.

    End Notes

      https://www.slb.com/who-we-are/our-history/1970s

      https://www.houstonchronicle.com/business/texas-inc/article/Hallburton-Turns-100-going-from-wagons-and-mules-13622229.php

      https://www.gao.gov/assets/220/214775.pdf

      https://www.nytimes.com/2018/10/12/opinion/silicon-valley-saudi-arabia.html

      https://biology.stackexchange.com/questions/31831/does-crude-oil-or-kerogen-contain-ancient-dna

  • Celebrate Your Independence: Taking Charge of Your Career

    Celebrate Your Independence: Taking Charge of Your Career

    Today, my country celebrates its 243rd birthday.  Many observe the day with family and friends and enjoy fireworks.  Consumption of hamburgers and hot dogs will most likely be huge.

    No one in the United States is still alive from the time when the colonists rowdily left Great Britain.  Moreover, the United Kingdom is one of this country’s staunchest allies and has been for decades.  For many, the day is a time for reflection and joy.  For some it is largely symbolic.

    However, there are many lessons from history and as the saying goes, “Those who do not remember the past are condemned to repeat it.”  So what can today’s population learn from those that took the ultimate risk in that day; “We pledge to each other our lives, our fortunes, and our sacred honor.”

    Despite some of the well discussed faults of this country, not many of us today are asked to pledge it all.  However, increasingly, we are being asked to take charge of our careers.

    Certainly, our lives and fortunes depend on how we manage our profession.  The 9 to 5 days of ole are long gone, if they truly existed.

    Many pundits, including this author have addressed the changing job market and the new role of digitalization.  In fact, we recently addressed this issue in depth; Job Disruption Due To Digitalization: Myths And Legends.  Interested readers are invited to read that piece.

    Much like colonialists of almost 300 years ago, we can no longer depend on the mother company to take care of our career needs.  Proactive men and women at all stages of their professional life can be more successful than with the old career model.  Passive individuals will reap what they sow as well.

    Enjoy you holiday weekend and get back to work next week actively managing your own career.  Happy Birthday, America!

    You Own Your Career, So What Are You Doing to Assure Your Personal Equity Growth?

    For More Information

    You can contact the author more information.

    End Notes

      https://www.philforhumanity.com/Those_Who_Ignore_History_are_Doomed_to_Repeat_It.html

      http://founding.com/our-lives-our-fortunes-and-our-sacred-honor/

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

  • Brand Your Digital Oilfield Culture: Internalize Its Transformation

    Brand Your Digital Oilfield Culture: Internalize Its Transformation

    Our recent article, “The Digital Oilfield Culture: Transformation Value for the Organizational Ecosystem” (pp.24-26) takes a somewhat different change management approach.  Why not brand your digital oilfield culture?

    Most consumers are familiar with the so-called ‘Brand Name.’  These are names so ubiquitous that in some cases that we take them for granted.  Soft drinks, beer, fast food and automobiles are only a small sample of ‘product/service’ brands most can immediately relate to; even subconsciously.

    Hearing a brand name elicits a response, usually positive but possible negative as well.  This is the way organizations seek to have their product become part of the lexicon.  Examples include Xeroxing and Googling among others.

    Digital Oilfield Culture

    “Systemic Digital Oilfield Culture can be defined as the Core Set of Values and Behavioral Economics of ALL participants of the extended organization and its Enterprise Risk Management strategy that reflect a Strong Bond Governance commitment to behaving as a High Reliability Enterprise Ecosystem in a Safe and Environmentally responsible manner.”

    Ok, while accurate, this author’s definition of a Systemic Digital Oilfield Culture may be stiff and boring to some.  What does it mean to me and why do I care?

    As noted in past blogs and written pieces, a successful cultural transformation must address the. “What’s in it for ME” question.  Moreover, the answer must make sense to me if I am to internalize it.

    Taken from consumer marketing a, “Brand Essence is the emotional heart of a brand, summed up in a few words.  The Brand Essence Wheel is a format for capturing and communicating the conceptual subtleties of the brand.” (Chung and Doran, 2016).

    Successful brand strategies can create fierce lifelong loyalties, i.e., the cola wars of the 1970’s attempts to capture the emerging Baby Boomer demographic.  So why not take advantage of this marketing strategy when transforming the culture of an organization?  Create these fierce loyalties for your organization’s success!

    Brand Wheel Construct

    In accordance with the theory, the Digital Oilfield Culture Brand Wheel (First Draft) is composed of two major categories:

    Facts & Symbols or those components of the Brand that address the “hard” and often more measurable aspects.

      • What the Culture does do for ME
      • How I would Describe the Culture

    Brand Personality addresses the more emotional side of the Brand

      • How the Brand make ME look
      • How the Brand makes ME feel

    The wheel is then populated with those criteria of interest to the organization (generally developed through a series of workshops at all levels of the firm and its ecosystem).  One example is depicted in the following (Version 1.0) graphic.

    Final Thoughts

    There is a significant body of knowledge about the highs and lows of organizational transformation/change management.  The preponderance of the evidence suggests the transformation of a digitalized organization is difficult and often fleeting.

    The B2C sector has demonstrated repeated and sustained success creating perceived value to the individual (ME).  In B2B sectors, Rah Rah, executive sponsorship, training, etc. all have their place with change.  Yet, this is approach has proved wanting.

    Most importantly, strong Brands are sustained when the Rah-Rah fades.  Just Do It is the tag line of one major brand.  Betting most readers know what firm that is.

    Is Digital Oilfield Cultural Branding in Your Organization’s Future?

    For More Information

    The complete article is available from Petroleum Africa magazine and a ‘for fee’ copy can be downloaded.  In addition to a more detailed discussion of the branding process, it contains a high-level Implementation Plan.

    You can also contact the author as well.

    End Notes

      Shemwell, Scott M. (2019, May/June). The Digital Oilfield Culture: Transformational Value for the Organizational Ecosystem. Petroleum Africa Magazine. Issue 3. pp. 24-26.

    Petroleum Africa magazine has graciously allowed the re-publication of this edition.  See our full article.

      Ibid.

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

  • What Lies Beneath the Surface of Your Organization: Structural Dynamics?

    What Lies Beneath the Surface of Your Organization: Structural Dynamics?

    As the officers, seamen and passengers of the Titanic came to understand, it is not what you can see that gets you but what is below the visible surface.  Visualizing the unseen remains a continuing challenge.

    The current president of the United States is by many accounts the most unlikely political victor.  He is not from the ‘industry’ and has limited experience in this field of endeavor.  None-the-less, he holds the office.

    The results of the US presidential election of 2016 is the subject of innumerable discussions.  Most center around the performance of his opponent and missed opportunities by the opposing party.  This pundit argues that neither of these are the prime reason for his election.

    Almost 30 years ago this writer was a member of the Leadership Team for a major publicly traded company.  Multiple reorganizations and the advice of numerous consulting firms did not enhance our position in a difficult market.

    Something we did not understand was at work.  Why couldn’t those with decades of managerial/industry experience and all the experts fathom the forces at work?  Unless, we could no action taken would be effective.

    What are Structural Dynamics?

    During this period, management theories abounded.  Examples included The New Realities by Drucker, The Fifth Discipline by Senge and Economic Value Added (EVA) to name a few.  None seemed to be able to help us understand the latent forces that eluded us.

    As part of the doctoral dissertation, assessing cross cultural negotiations and the relationship between human Relationships, Behaviors, and Conditions (RBC) we enhanced existing theory into an actionable methodology, Structural Dynamics.

    The fundamental premise upon which the theory of Structural Dynamics is developed is the belief that structures are not static and that more often than not, these dynamics are not directly observable.

    Over time, the very nature of the structure and the very nature of the component parts of the structure may be radically different from today’s composition.

    In other words, Structural Dynamics is defined as “the morphology or patterns of motion towards process equilibrium of interpersonal systems.”  While this sounds academic, the implementation is straightforward.  Think of this as an iceberg.

    The Iceberg Principle—90% of any system’s structure is below the surface or hidden from direct observation.  This latent component controls all the processes associated with the system.

    Implementation

    While there is a quantitative aspect to Structural Dynamics, analysts can use this qualitative approach.  There is plenty of information available; however, it can be challenging to shift through it and separate actionable data from noise.

    For example, while it was evident for all to see most prognosticators wrote off the Trump rallies and the size of the crowds.  Similarly, Xerox had most of the technology for today’s PC, but it took Apple and others to realize the value.

    Think these are remote and one-off events?  Only 60 companies that were members of the Fortune 500 in 1955 were still members in 2017.  Some mergers for sure, but why did the others not see the waves that swept them away?  Sears is a recent example.

    Assessment

    Structural Dynamics analysts can use the following checklist as guidelines.  This list is not all-inclusive, nor is it meant to be a list that one simply puts a check mark next to and tallies up the number of checks versus not check.

    It is more accurately a framework for developing a Structural Dynamics model for any given industry environment.  The following criteria provide a preliminary checklist of set of questions that should be addressed when one seeks a better understanding of the latent variables associated with an industry segment or emerging environment, such as new technologies.

    1. Not obvious or normally thought of as industry driver
    2. Usually not directly related to standard industry practices
    3. Becomes more visible over time or repeated measurement
    4. Often not specific to a single industry or economy
    5. Cannot be determined by analysis of best practices
    6. Typically, not associated with a single or few number of processes
    7. Not associated with processes in a single firm
    8. Can be cyclical or seasonal in nature
    9. Not necessarily random or chaotic events in nature
    10. Not necessarily economic variables in nature
    11. Tend to be long term variables with limited reaction to specific current events
    12. Can remain dormant for long periods of time, but when they become visible the impact can be significant and swift
    13. Demographics may provide insight into emerging or future Structural Dynamics, they should not be used exclusively
    14. Often small niche (or new) players may benefit from Structural Dynamics These niches are often outside of the industry of interest, but are subsequently imported into the industry of interest
    15. Technological developments may forecast future competitive events, i.e., the impact of cellular phones on the pay phone industry
    16. Not all technology is useful in the near term. The technology developed by Xerox, Palo Alto in the 1960s was not commercialized for almost 20 years.

    Computer icon and windows technology was not commercially viable until Steve Jobs (founder of Apple Computer), and Bill Gates (Microsoft) expanded hobbyist’s niches into the personal computer revolution of the 1980s.

    Knowledge of Structural Dynamics variables can defeat the brute force of large deep-pockets organization, although this is not guaranteed.  As this construct evolves, we expect to develop a more robust set of tools, so managers and other practitioners will be better able to visualize their Structural Dynamics environment.  In the meantime, it is useful to define latent variables.

    Latent Variables Are impacting Your Organization.  What Will You Do About it?

    For More Information

    Much of this blog is taken from our monograph, Structural Dynamics: Foundation of Next Generation Management Science.  The Kindle version is available from Amazon https://www.amazon.com/gp/product/B00U0JKMT0/ref=dbs_a_def_rwt_bibl_vppi_i1

    Fundamental to our Operational Excellence Platform, also see https://therrinstitute.com/structural-dynamics/

    End Note

      http://www.aei.org/publication/fortune-500-firms-1955-v-2017-only-12-remain-thanks-to-the-creative-destruction-that-fuels-economic-prosperity/

  • Home Improvement Case Study: What’s the Value Proposition of Service Providers and Why Does It Matter to My Business?

    Home Improvement Case Study: What’s the Value Proposition of Service Providers and Why Does It Matter to My Business?

    This blog is focused on business issues and not retail services such as home repair/upgrade.  However, in recent months this writer has been in numerous discussions regarding the development and presentation to customers of a Value Proposition.

    This is an ongoing issue for each organization, product, service and other processes whereby an organization seeks to influence a market segment.  Usually the goal is to generate revenue but that is not always the case, i.e., charitable giving to any number of causes.

    The fundamental question marketers must address.  Why would a customer buy from us versus one of our many competitors?

    One of the challenges every firm face is the differentiation of their offering in a crowded space.  Buzzwords abound and are often used by all economic players.  Examples include, IT, Safety, Cloud, Virtual Reality, Online and the list goes on.

    Recent television advertisements include several firms that offer home improvement services to individuals.  Not B2B, but possibly instructive for those in the industrial segments.

    While this is a crowded fragmented space, three companies are routinely pitching their solutions.  These companies appear to this observer to be direct competitors.

    Angie’s List has been around for a long time (Internet years), while HomeAdvisor and TAKL appear to be newer entrants.  Ads for Angie’s List feature the founder, HomeAdvisor uses an actress, and TAKL has a catchy tune song by a celebrity spokesperson (and apparent investor).  All appear to be selling the same services.

    Exercise—Assessing Value to Me

    As mentioned, most of us struggle developing and articulating a believable, defendable and demonstrable value proposition.  Our focus is often inward.  Let’s look elsewhere.

    Assume you’re a home owner.  You have three projects.  You need a handyman for about six hours doing various tasks.  You also want to replace three old ceiling fans with ones that can be remotely controlled.  Finally, your roof needs replacing.

    Which of these three firms will you retain for these jobs and why?  What is your due diligence process and decision criteria?

    We invite readers to answer these questions.  The point being, why are you buying from any of these firms?

    In the answer lies the rationale—why do your customers buy from you?  If you can answer the home improvement question, hopefully that decision making process will provide insight into your selling process.

    Why Do Customers Buy From Your Company?

     

    For more information on Economic Value Propositions.

  • Systemic Reasoning Errors: Stink’en Think’en

    Systemic Reasoning Errors: Stink’en Think’en

    The April 13-14, 2019 edition of the Wall Street Journal featured an opinion piece by Holman W. Jenkins, Jr., Russiagate and the Media’s News Denial.  The author makes the point, “Judgement is teachable.  Long ago, in relation to the Enron debacle, I pointed to the work of Harvard’s Max Bazerman and Northwestern’s David Messick, who theorized how systematic reasoning errors can lead to unethical business judgments.”  He goes on to discuss how the journalism sector may be suffering from this problem, vis-à-vis the Trump Administration.

    Cognitive bias errors impact the way people process and interpret information.  Our attempt to simplify can lead to nonobjective, illogical and poor decision making.  So, do these poor judgement issues concern me?

    The emerging digitalization model to attain and sustain Operational Excellence by definition is systemically complex.  A highly integrated ecosystem coupled with tens of thousands of data sensors and quasi-independent processing systems support field operations.  Moreover, risk mitigation models in such an environment are themselves complex.

    Human decision-making processes in this new environment will necessarily change from the traditional management of automated systems and data analysis.  Extensive training must be part of the transformational process.

    Additionally, Governance models may need revision as well.  What is the role of the Board and ‘C’ Suite (CIO vs. COO?) with the digitalization of the organization?

    Clarification.  The term ‘stinking thinking’ refers to tactics either unintentionally or insidiously used to create expectation biases.  The title uses a colloquial term Stink’en Think’en as a function of lousy thought processes; nothing more.

    The challenges we face are much more than technology driven.  As always, human Behaviors are at the core and Conditions in the near future may be dramatically different from the present.

    New Relationships will emerge as well.  We have previously discussed the R B C model.  It is good guidance for this transformation.

    How Does Your Organization Mitigate Systemic Reasoning Errors by Its Decision Makers?

    For More Information

    How Cognitive Biases Influence How You Think and Act is a very good article on this subject.  Interested readers may want to check it out.

    You can contact the author more information as well.

    End Notes

      https://www.psychologytoday.com/us/blog/the-media-psychology-effect/201311/stinking-thinking-and-expectation-bias

      https://www.amazon.com/gp/product/B00U0JKMT0/ref=dbs_a_def_rwt_bibl_vppi_i1

  • Elevator: Going Up or Going Down?

    Elevator: Going Up or Going Down?

    True Story!  A couple of decades ago when I was the sales manager of a technology line of business that was part of a much larger organization, an excited young sales representative rushed into my office.  He just had to tell me that he just rode up the elevator and an older gentleman wearing a suit who had asked him about his business.

    He explained in the short time it took to get to our floor he had essentially ‘cored dumped’ everything he knew to this stranger.  When asked if he got his name, the answer was no.  Turns out the individual was the CEO of our division.

    While this was a discussion in an elevator, it was far from an elevator pitch.  Talking fast to get as much as you can in a short period is usually not an effective sales pitch.

    Plus, as always qualify who you are talking to and why they have a need to know.  Could have been a competitor!

    Unfortunately, we see this all the time.  Individuals try to jam in as much as they can in funding Pitch Competitions and political pundits in the media feel the same pressure to talk fast and then talk all over each other.

    However, and perhaps the worst of all selling transgressions.  We had attained a long-coveted meeting with a senior decision maker at a process plant.  We completed the pitch for our solution.  The customer team asked a couple of good questions which we apparently answered satisfactory.

    Then the senior director said words to the effect, “I can see how this can help my problem. . .” but did get a chance to complete his statement before one of our technical people ‘talked over him’ to explain blah blah blah.

    The classic, don’t wait for the customer to complete his/her question before answering it.  This usually means that it will be answered incorrectly.

    The subject changed, and the meeting ended shortly afterwards.  We never did discover how our solution could have helped in the mind of that individual.

    In our zest to close deals, we often are our own worst enemy.  When presented with an opportunity to state your case to a buyer, state it succinctly and quickly.  Then shut up and let the individual respond!

    Elevator Pitch

    According to Wikipedia, “An elevator pitch, elevator speech, or elevator statement is a short summary used to quickly and simply define a person, profession, product, service, organization or event and its value proposition.

    The name “elevator pitch” reflects the idea that it should be possible to deliver the summary in the time span of an elevator ride, or approximately thirty seconds to two minutes.  The term itself comes from a scenario of an accidental meeting with someone important in the elevator.  If the conversation inside the elevator in those few seconds is interesting and value adding, the conversation will continue after the elevator ride or end in exchange of business card or a scheduled meeting.”

    Mark Twain famously quipped, “I didn’t have time to write a short letter, so I wrote a long one instead.”  It takes time and thought to succinctly and quickly state something that is very important to its writer.

    The tendency is to say as much and as fast as we can.  Surely, everyone will want to know what I know and in detail.  This is such an important subject!

    However, if a deal is on the line what is the Return on Investment (ROI) of the time it takes to develop and refine an elevator pitch?  Like any business deal, if it will be profitable then do it.  If not, then why do we have the product/service!

    The ‘I didn’t have time’ comment is insulting to those who you explain it to in this regard.  The sales representative’s livelihood and firm’ profitability depend on you the rep’s team’s time.

    How Do I Develop an Elevator Pitch?

    To develop an effective elevator pitch, one must understand the product/service they are selling and have a ‘compelling value proposition’ already developed.  Write down every major item you want to get across and then continue to refine it until it meets the criteria above.

    What are the three most important points a customer would care about?

    Pitch it internally and then to outsiders such as mentors.  Update it as you receive additional input, both positive and critical.  Then Practice, Practice, Practice.

    It must come across effectively, not stilted nor leave the listener with the feeling they have been the subject of a ‘core dump.’  Let them respond, answer questions and ask them, “What’s the Next Step” sort of closing question.

    One caveat, since you do not know who you are talking to be careful about providing any proprietary information.  So, unless you have publicly available market or financial figures leave them out.  They can come later at follow up meetings.

    However, in the appropriate setting such as a Pitch Competition non-proprietary market and financial information will most likely be required in the elevator pitch.  Use your good judgement.

    For most of us the so called ‘blank sheet of paper’ can be intimidating.  It helps to have precedents.

    An Example

    The following is an actual elevator pitched developed a few years ago—targeting 20-30 seconds in a public setting.  It has been redacted as noted within it.

    _______ is an __________ “Enterprise Platform” that addresses _________-issues in sectors with complex ______ and ______ requiring many ____ parties and their _____.

    It seamlessly incorporates _____ and ______ enabling a _______, efficiency and effectiveness in operations—including an automatic and comprehensive ______ process.

    This cloud-based collaborative ____ solution provides ____ engineers, technicians and ______ personnel with the data and information necessary to perform their tasks in compliance with all __________________.

    There are also several examples available on line that address different requirements, i.e. sales, investor, etc. and industry sectors.  A good pitch will pay significant dividends and is well worth the time and energy necessary to develop.

    How Effective is Your Elevator Pitch?

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

  • Event Horizon: Towards Singularity

    Event Horizon: Towards Singularity

    This month a group of astronomers announced they had captured the first image of a black hole, some 55 million light years from earth.  A novel use of high-performance computing enabled this imaging and seems to hold promise for future commercial applications.

    Moreover, there is a great deal of discussion and hope that astronauts will return to the Moon and even as sustained human presence on Mars.  Space Race 2.0!

    When the USSR Sputnik satellite was launched on October 4, 1957 it sparked a technological revolution that continues to this day across a wide number of disciplines.  According to the Jet Propulsion Laboratory, California Institute of Technology there are 20 common household items that are a direct result of space travel.

    Camera Phones Scratch-Resistant Lenses CAT Scans LEDs
    Landmine Removal Athletic Shoes Foil Blankets Water Purification Systems
    Dust Busters Ear Thermometers

    Home Insulation

    		 The Jaws of Life
    Wireless Headsets Memory Foam Frees Dried Food Adjustable Smoke Detector
    Baby Formula Artificial Limbs Computer Mouse Portable Computer

    Additionally, NASA has a robust Intellectual Property Licensing program.  This includes some at no cost as well.

    Scientists define an Event Horizon as the boundary defined in a region of space surrounding a black hole from which nothing, including light can escape.  This effectively hides the Singularity (infinite property) at the center of a black hole.  Thus, it is not possible to observe the collapse of the laws of physics at that point.

    The current (funded) fascination with Deep Space and Interplanetary Travel will most likely fuel a technological explosion that will dwarf the last 70+ years beginning with the German V-2 rocket.  These are exciting times for technologists.

    They are even more exciting for those tasked with developing and marketing new goods and services.

    How Will Your Organization Prepare for the Coming Technology Wave?

      http://astronomy.swin.edu.au/cosmos/E/Event+Horizon

      https://www.inverse.com/article/54833-m87-black-hole-photo-data-storage-feat

      https://www.jpl.nasa.gov/infographics/infographic.view.php?id=11358

  • I Hate These Things: Why Does This Always Happen to Me?

    I Hate These Things: Why Does This Always Happen to Me?

    We have long argued that people will change if they understand the new idea/technology value proposition—what’s in it for me?  For some, this question is more difficult to answer than others.

    Moreover, we are all stuck!  This age of digitalization may pass a few ‘off the grid’ hermits by, but for the rest of us there is no turning back.  So, what if I hate these computers and they never work as they should?  What’s a person to do?

    All of us have expressed some frustration with technology.  It doesn’t work well.  It does not appear that Human Factors were considered in the development process.  Various ‘Screens of Death,’ and so forth and so on.  Of course, glitches occur at the least opportune time.

    Turns out this frustration with technology is understood.  Dystechnia is defined as, “A barrier to organizational performance—a condition of flawed or failed efficacy in the use, deployment, or logistics of technology.”  Akin to other disorders of capacity, i.e., dyslexia it is basically the impairment of the ability to control a skill.

    In other words, the inability to manage a Condition.  This becomes a reason to resist technological advancements as ‘nothing is in it for me.’  In fact, it makes my life worse!

    The Technology Acceptance Model (TAM), circa 1989 addressed two perceptions driving adoption Behavior, ‘Perceived Usefulness’ and ‘Perceived Ease of Use.’  The what’s in it for me question.

    To change the Relationship that individuals have with technology, management must understand that those who resist may exhibit two traits:

    • Impaired capacity to apply the ‘new’ to daily tasks
    • Perception that it does not help them

    Those regular readers of this blog are aware of the R B C model (Relationship, Behavior, Condition).  From our Cross-Cultural Serious Game, the model was originally developed to address issues around cross cultural (international) negotiation processes.  Relationships are the focal point of this perspective, reflecting commonality of interest, balance of power and trust as well as intensity of expressed conflict.

    Behavior in this model is defined as a broad term including multi-dimensions and intentional as well as unintentional.  Finally, Conditions are defined as active and including circumstances, capabilities and skills of the parties, culture, and the environment.  Of course, time is a variable in this model as well.

    One key feature of the R B C Framework is its emphasis on interactive relationships while providing an environment for multiple levels of behavioral analysis.

    This makes it a useful tool to better understand technology take up resistance.  As with any forensic assessor, once we understand the Structural Dynamics we can implement approaches that will resolve efforts to thwart the ‘new.’

    How Does Your Organization Overcome Resistance to Change?

      https://www.urbandictionary.com/define.php?term=dystechnia

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

      www.rri-ccgame.com

      https://therrinstitute.com/wp-content/uploads/2017/10/structural_dynamics_-__version.pdf