Tag: best practice

  • Tariffs Tariffs, Tariffs

    Tariffs Tariffs, Tariffs

    According to the economist, Paul Craig Roberts, “Tariffs protect ill-considered government policies, such as costly regulations and high taxes on labor and capital that make our goods uncompetitive in international markets.”

    Young and emerging countries may want tariffs to protect nascent industries and other local protections to help assure employment and rise of a strong commercial base.  Advanced (OECD) countries seek to protect existing sectors for a number of reasons including employment and political/military power.

    Once in place both exporting and importing countries develop a sense of normalcy and change becomes difficult for all parties involved.  They become part of the business culture of the exporter and importer.  As with other cultural change, engrained habits are stubborn.

    Policy Disruption

    The Trump Administration is arguing that an unlevel trading system has existed, at least since the end of World War II in 1945.  Their tariff policy seeks to update the partner relationship with countries and their companies that are no longer rebuilding form that devastating conflict.  The protections afforded nascent rebuilt from that era are no longer necessary or relevant.

    As might be expected, many prefer the status quo and vehemently argue the unfairness of it all and other rationales for not changing practices and policies that are 80 years old.  This is no difference than those that have been made redundant due to a reorganization make the case for their value add, usually in vain.

    Comparative Advantage

    Over two decades ago this author postulated, “Economists usually think of comparative advantage as a function of the raw material or strategic position a country holds.  In the knowledge age, comparative advantage goes to those who hold the knowledge necessary to achieve strategic posture.”  Moreover, “Thought leadership and subsequent comparative/competitive advantage usually goes to those that see things differently, earlier, or both.  Seeing is one thing, believing another, and implementation still another.  Leaders do not just postulate, they make things happen.  This is the tough part.  Many people have good ideas, but most do not implement and even fewer follow through to the end.”

    In May 2025, President Trump signed over $2 Trillion in business deals with Saudi Arabia, Qatar and the United Arab Emirate.  These were not traditional oil and gas investments that this part of the world is known for, but commitments in defense, aerospace, AI and other advanced technologies.

    In addition to aircraft and other defense products and solutions, these countries focused on the development of emerging capabilities such as AI.  A classic example of the position taken almost a quarter of a century ago.

    Are Humans Being Replaced?

    This has been the question raised by every dramatic technological introduction.  The general consensus, in this writer’s opinion is, we adapt and adopt to the new when it is beneficial and reject it when it does not add value to our personal life–the ‘What’s in it for ME question.

    This is the contemporary question all of us are reacting to with the advent of Artificial Intelligence.  Accordingly, “The rise of artificial intelligence has reinforced the belief that transformations across various domains can be primarily achieved through digital technology.  However, the creative potential for change of people’s  cognitive, emotional and imaginative powers often loses importance and gives way to  creative technology.   Many therefore see humans as having arrived in the age of post and transhumanism.  But is the human being as such really a kind of obsolete model?  According to such a view, it seems to have become ‘normal’ for people to leave their own fate, as well as the fate of humanity and the environment, to technical transformation possibilities.  This implies accepting that technology increasingly becomes an instrument of control rather than a tool to be used and directed, as individuals become subject to a technology and capitalist artificial intelligence industry that surpasses their own capabilities, leading them to be controlled by it.”

    One can assume that these concerns will cause many to fight for existing international trade rules to remain in place.  This is true, not only for tariffs, readers may remember that in 2024, “The ILA’s ( International Longshoremen’s Association) initial proposal was for a 77% salary increase over the six-year duration of their contract with USMX, as well as a complete ban on the automation of gates, cranes and container-moving trucks at its ports.”

    Short-Term Pain, Long-Term Gain

    Cultural Disruption can be sharp and quick, like a knife cutting into the skin.  It will take some time and perhaps a long time for transformation to take hold, and wounds to heal.

    However, this parade is marching by.  We can all chose to join in, become a bandleader, or hope it will just go away.  Change can be painful, but without it we cease to grow and will eventually whither and our value to organizations will no longer exist.

    Get with the program!  Tariffs were never meant to be generational, but only a short-term economic band aid.

    How are you and your loved ones preparing for ongoing technological convulsions?

     

    Pre order our new book, May 23, 2025

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Preorder May 23, 2025

    We are also pleased to advise our loyal readers that CRC Press has accepted our proposal for this forthcoming book, Nonlinear Big Data and AI-Enabled Problem-Solving: Transforming From A Spreadsheet Society.  Publication 2026.  Stay tuned for more details.

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in June 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Dot Bomb 2.0 — ai Style

    Dot Bomb 2.0 — ai Style

    Are we doing this again with Artificial Intelligence?

    On March 10, 2000, a five-year dotcom bubble bursts on the Nasdaq Index. Even blue-chip tech companies lost more than 80% of their market value and it would be 15 years before Nasdaq would see that peak again.  “The dotcom bubble, also known as the Internet bubble, grew out of a combination of the presence of speculative or fad-based investing, the abundance of venture capital funding for startups, and the failure of dotcoms to turn a profit. Investors poured money into Internet startups during the 1990s hoping they would one day become profitable. Many investors and venture capitalists abandoned a cautious approach for fear of not being able to cash in on the growing use of the Internet.”

    At the height of the dotcom hype, organizations were changing their name (not just the domain) to include this suffix, i.e. Acme.com.  This attempt to differentiate almost became silly and the butt of jokes.

    Increasingly, this pundit is seeing a similar thought process when it comes to artificial intelligence. The new marketing moniker/domain is now Acme.ai.  We predict .ai identification will end in flames as did .com.  This is not to say artificial intelligence will go away but that it will become mainstream, just as the Internet did not fade into marketing oblivion. Online business is now just the way we do business and access to it is available to all at a marginal cost that approaches zero.

    Branding

    Much of this section is adapted from our report prepared for a United Nations Agency.

    The concept of the Brand is well established in marketing literature and practice.  The Brand is a messaging vehicle that seeks to position all consumers and stakeholders “on the same page.”  As discussed herein, it is a powerful construct and may be of useful to the nuclear power sector as it seeks to embody an AI Culture into all stakeholders.

    The theory of the Brand Wheel is addressed herein.  To address the Key Themes and concerns raised during the conference, it appears that “AI Culture” may need to become a “Brand.”  Strong Brands generate a powerful emotional response!

    For example, a positive brand such as BMW’s “the ultimate driving machine” (at least in the USA) transcend other issues such as the high cost of maintenance of these automobiles.  Negative branding often can never be overcome as the Coca Cola Company learned when they launched “New Coke” in 1985.  This company almost ruined a long-standing strong brand!

    Construct

    We put forth a Brand mental model for debate within the industry.  In this section, the construct or set of organizing ideas for consideration are developed.

    In accordance with the theory, the AI Culture Brand Wheel (High Level Framework) 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 Product, Service, or Solution does for ME
    • How I would Describe the Product, Service, or Solution

    Brand Personality addresses the more emotional side of the Brand

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

    Populating the Wheel

    The Groups (developed in a workshop) in the following diagram are believed to be representative of major issues the sector faces.  It follows that any marketing message to stakeholders should address their concerns.

    These four quadrants were populated with over twenty Groups from the Affinity Diagram process.  This is a high-level approach to populate the wheel with the almost 200 AI Culture issues (variables) identified from participants.

    The following table shows the Groups by Brand Wheel Quadrant and the Rationale behind the categorization.  The focus is on the individual person and how he or she relates to the AI Culture Brand.  By extension, how individual stakeholders feel is how their organization or group feels about the Brand.

    The Brand Wheel is an easy-to-use model that helps organization position themselves in crowded market segments.

    Graphically, these Groups are shown in the following figure.  Seven Groups fall in the top two quadrants as more tangible variables (Fact) by nature and four in the Personality quadrants.  One can surmise that a Brand such as Systemic AI Culture would require substantial “technical” support to be credible.

    The intangible Groups can be considered the Brand emotional delivery mechanisms.  Collectively, the Systemic AI Culture Brand can be considered a key aspect the industry Go-to-Market strategy—selling Systemic AI Culture.

    Similar to the way an Affinity Diagram adds high value to the team doing the work, developing the Brand Wheel adds significant value to the process itself.  Figures and charts are visual representations of concepts that are highly appealing.  The Brand Wheel is one method supported by the Affinity Diagram to capture a large set and sometimes conflicting issues into a model individuals can grasp and internalize.

    Finalizing the Brand

    A brand Tag Line would be helpful to etch the construct into the minds of all stakeholders.  For example, High Reliability Management used the concept of Mindfulness—the practice of maintaining a nonjudgmental state of heightened or complete awareness of one’s thoughts, emotions, or experiences on a moment-to-moment basis, also such a state of awareness (situational awareness).

    Concluding Thoughts

    To be clear, branding is not the end game in marketing but one of many prongs used to achieve strategic advantage and greater shareholder value.  It is a convenient framework that captures the essence of who the organization is.  This approach is immensely more successful than simply attaching .ai to the organization name, hoping for differentiation.  Any competitor can do exactly the same thing.

    Earn your value the old fashion way, with viable products that solve problems, customers, profits and return to shareholders. Forget about the hype!

    Is your organization taking Rudyard Kipling’s advice to his son, “If you can keep your head when all about you are losing theirs and blaming it on you, if you can trust yourself when all men doubt you,
    but make allowance for their doubting too!”

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available June 2025

    We are also pleased to advise our loyal readers that CRC Press has accepted our proposal for this forthcoming book, Nonlinear Big Data and AI-Enabled Problem-Solving: Transforming From A Spreadsheet Society.  Stay tuned for more details.

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in June 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Send in the Suits

    Send in the Suits

    “The best teachers are those who show you where to look, but don’t tell you what to see.”

    Alexandra K. Trenfor

    As a sales manager, executive and now independent advisor, I am often asked to go on sales calls. Sounds like what every sales executive should to, support the representative, interact with the client and help close the deal, right?

    Not so fast, often this is a crutch.  For a number of reasons, mostly lack of preparation, the sales representative is looking to outsource the sales call.  What often happens next, the perception the part of the client of a weak performance by the vendor. This tact will backfire more often than not.

    It continues to amaze me how unprepared sales calls are.  In the heat of making as many calls as possible, real opportunities are routinely squandered.  The feeling among many reps is that an executive adds gravitas and is almost a dressed up potted plant in the room.

    Meet and Greet is only appropriate at an event, such as a hospitality suite at a conference. A sales call needs an agenda and end game goals. “I wanted to introduce so-and-so is not an agenda and will accomplish exactly nothing.

    Proper Use of an Executive

    We asked Chatbot Pro two questions, How to Plan a Sales Call and How to Use a Senior Executive on a Sales Call.  Its response follows:

    How to Plan a Sales Call

    Planning a successful sales call involves several key steps to ensure that you are prepared and can effectively engage with the potential client. Here’s a guide to help you through the process:

    1. Research Your ProspectUnderstand the prospect’s business, industry, and any specific challenges they might be facing. Use LinkedIn, their company website, and news articles.

    2. Define Your ObjectiveBe clear on what you want to achieve. This could be setting up a follow-up meeting, closing a sale, or gathering information.

    3. Prepare Your Value PropositionArticulate how your product or service can solve a problem or improve the prospect’s situation. Tailor this based on your research on their needs.

    4. Develop QuestionsCraft open-ended questions that will help you understand their needs better and match your solution to their requirements.

    5. Plan Your PitchCreate an outline of what you want to say during the call, focusing on key benefits and features that resonate with the prospect.

    6. Practice Active ListeningBe prepared to listen more than you speak. Make mental notes of key points the prospect mentions so that you can address them.

    7. Set the AgendaAt the beginning of the call, outline what you hope to discuss and ask if there’s anything specific the prospect would like to cover.

    8. Prepare for ObjectionsAnticipate potential objections the prospect may have and prepare responses to address these concerns.

    9. Follow-Up PlanBe ready to discuss next steps and how you’ll follow up after the call, no matter the outcome.

    10. Practice and RefineRole-play the call with a colleague or rehearse your talking points to build confidence and identify any weak areas.

    11. Schedule a Time – Plan the call during a time that is convenient for the prospect, ensuring you have adequate time without interruptions.

    By following these steps, you’ll be in a strong position to have a productive sales call that builds rapport, addresses the prospect’s needs, and ultimately drives sales.

    How to Use a Senior Executive on a Sales Call

    Using a senior executive in a sales call can significantly enhance your pitch, especially when dealing with high-stakes clients or complex sales. Here are steps on how to effectively include a senior executive in your sales call:

    1. Identify the Right Executive – Choose a senior executive whose expertise aligns with the prospect’s needs or the solution being offered. This could be a CEO, CTO, or another relevant leader.

    2. Prepare Them with Context – Provide the executive with background information on the prospect, including their business, challenges, and previous interactions. Share key objectives for the call.

    3. Define RolesBefore the call, clarify who will lead the conversation and how each participant will contribute. The senior executive can handle higher-level discussions, while the sales rep can manage details and logistics.

    4. Focus on ValueDuring the call, the executive should emphasize the strategic value and vision of the solution rather than delving into minute details. This highlights the significance of the partnership.

    5. Build Credibility and TrustHaving a senior executive on the call can instill confidence in the prospect. They can address company capabilities, commitment, and long-term vision, which can reassure the client.

    6. Encourage Engagement – The executive should ask questions and encourage dialogue. This not only fosters a relationship but also helps uncover deeper insights into the prospect’s needs.

    7. Handle ObjectionsUse the senior executive’s authority to address any key objections the prospect may have. Their experience and level can help navigate concerns more effectively.

    8. Follow-Up ActionsAt the end of the call, the executive should help define the next steps or commitments. This shows commitment from the top level of the organization.

    9. Thank and AcknowledgeThank the prospect for their time and reiterate the value that your organization can bring, leveraging the senior executive’s closing remarks for strong impact.

    10. Debrief After the CallReview the call with the executive afterward to assess what went well, what could be improved, and any follow-up actions needed.

    Including a senior executive in sales calls can provide a significant edge by leveraging their authority and experience, ultimately leading to more successful outcomes.

    The use of senior executives, and I would include senior support individuals such technology gurus or Chief Digital Officers, etc. takes a fair amount of prep work.  Moreover, clients may invite counterparts and/or others to the meeting.  A big deal!

    It is only fair to all concerned that the call be well thought out.  This is not to say stick with a rigid script.  The dialogue may well lead into other areas and deals struck may be substantially different than the original position(s).

    “We’re from corporate and we are here to help.”  How do you maximize this valuable asset?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available June 2025

    We are also pleased to advise our loyal readers that CRC Press has accepted our proposal for this forthcoming book, Nonlinear Big Data and AI-Enabled Problem-Solving: Transforming From A Spreadsheet Society.  Stay tuned for more details.

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in June 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Reputation, Reputation, Reputation

    Reputation, Reputation, Reputation

    “It takes 20 years to build a reputation and five minutes to ruin it.  If you think about that, you’ll do things differently.”

    – Warren Buffett

    It is fascinating how many accident videos get posted to social media.  Guess we all go to NASCAR races to see car wrecks.  In some cases, videos are personal disasters for those involved.  In some cases, they are downright funny and in the category of what were they thinking.

    Equipment and facilities damage, lost production/project time, personal injury litigation are just some obvious costs.  One hidden cost is reputational damage.  Would you hire a firm that hires, does not train, and/or tolerates some of this behavior?  Probably not, and in some case a strong safety record is part of the procurement decision process.

    Risk Mitigation

    Most of the social media video show failures in occupational safety.  Typically, in the United States these would fall under the Occupational Safety and Health Administration (OSHA) and/or state and local safety regulations.  This is laudable, but without a broader safety governance framework, a lackadaisical attitude can continue.

    Under a Strong Bond Governance Framework, a robust Operations Management System (OMS) enables both public and private firms to realize the Safety Culture they seek that will keep them off the social media most watched list.

    Strong Bond Governance

    An organizational governance model with the following attributes first put forth by the author in our seminal 2014 book, following the Deepwater Horizon incident.

    • Direct, defined relationships that enables open and valid information between governance members.
    • Led by authorities who are closely connected and strongly bonded.
    • Strong Governance, Risk, and Compliance (GRC) system.
    • Back office and field processes combined into a single information model (OT-IT).
    • Designed for application and use in Mission-Critical Environments. [i]

    [i] Holland, Winford “Dutch” E. and Shemwell, Scott M. (2014). Implementing a Culture of Safety: A Roadmap to Performance-Based Compliance. New York: Xlibris.

    Operational Excellence

    Operational Excellence is the execution of the business strategy more consistently and reliably than the competition, with lower operational risk, lower operating costs, and increased revenues relative to its competitor.  It is needed more than ever in today’s technology driven rapidly changing business models, which require organizations to undergo end-to-end business transformation. Operational Excellence can also be viewed as execution excellence. 

    However, the focus of Operational Excellence goes beyond the traditional continuous improvement methods to a long-term change in organizational culture.  Companies in pursuit of Operational Excellence do two things significantly differently than other companies: they manage their business and operational processes systematically and invest in developing the right culture. 

    Operational Excellence manifests itself through integrated performance across revenue, cost, and risk. It focuses on meeting customer expectation through the continuous improvement of the operational processes and the culture of the organization.  The goal is to develop one single, integrated enterprise level management system with ideal flow.  The second component, a culture of Operational Discipline, is commonly described as doing the right thing, the right way, every time.  This culture is built upon guiding principles of integrity, questioning attitude, always problem-solving, daily continuous improvement mind-set, level of knowledge, teamwork, and process driven.

    Organizations attain and sustain Operational Excellence using tools such as Operations Management System OMS).

    A Typical OMS Framework includes all the major areas involved in organizational processes such as shown in this graphic.

    OMS is a collection of processes and procedures enabling a company to effectively manage business practices and achieve the highest level of Operational Excellence in daily operations.

    One of the more notable examples is the Safety and Environmental Management System (SEMS).  SEMS embodies the Safety Culture into the organization’s OMS.  This systemic model is incorporated into a Strong Bond Governance Framework causing safety to become ‘the way we do business.’  In other words, the culture of the organization and by extension its Ecosystem.

    Systemic Safety Culture

    In a culture of safety, people are not merely encouraged to work toward change; they take action when it is needed.  Inaction in the face of safety problems is taboo, and eventually the pressure comes from all directions — from peers as well as leaders. There is no room in a culture of safety for those who uselessly point fingers or say, “Safety is not my responsibility, so I’ll file a report and wash my hands of it.” 

    — Institute for Healthcare Improvement

    Systemic Safety Culture is 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.

    Most Safety Cultures have a set of tenets similar to the nine shown in the following list.  These are based on those developed by the Bureau of Safety and Environmental Enforcement’s (BSEE) for marine offshore oil and gas operations and are typical of those used in other Critical Infrastructure sectors.

    Nine Tenets of a Culture of Safety

    1. Leadership
    2. Problem Identification and Resolution
    3. Personal Accountability
    4. Work Processes
    5. Continuous Learning
    6. An Environment for Raising Concerns
    7. Effective Communications
    8. Trust and Respect
    9. Inquiring Attitude

    Finally, it is common practice for parties to refer to a singular industry ‘Safety Culture.’  In reality since each organization has its own culture, there are literally hundreds if not thousands of Safety Cultures in any critical infrastructure sector.  As shown in the above figure, each individual can interact routinely with a myriad of other cultures, both internal to their organization as well as with external economic players.

    After the Deepwater Horizon disaster in 2010, the authors quickly recognized that all economic players in the industry regardless of size would need to immediately adopt a Safety Culture if they were to survive.

    The resulting 2014 book, Implementing a Culture of Safety: A Roadmap for Performance Based Compliance remains one the few that readers can use as a roadmap to incorporate a Safety Culture into their Operational Excellence business model regardless of industry.

    Smart OpEx

    Fifteen years ago, large organizational Operations Management Systems were struggling to incorporate structural safety as more than the so-called, ‘slips, trips and falls’ of OSHA regulations to one where safety is endemic to the culture.  Smaller firms, often participants in the supplier ecosystem were largely forgiven.  The logic being that the major contractors and operators would assure that the final work product met Safety Culture requirements.  This is no longer the case.  Firms of all sizes in every business sector with an operations component now require an OMS to manage not just internal operations but third-party contractors as well.

    The Smart OpEx Operations Management System software solution is joint venture between The Rapid Response Institute LLC and Knowledge Ops, Inc.

    As Mr. Buffet mentions, reputations can be lost in an instant.  According to a 2007 Harvard Business Review article, “In an economy where 70% to 80% of market value comes from hard-to-assess intangible assets such as brand equity, intellectual capital, and goodwill, organizations are especially vulnerable to anything that damages their reputations.”  While almost 20 years old, the premise of the HBR piece remains the case as Boeing, Bud Light, and others can attest.

    Put systems with checks and balances in place that enable the organizational governance and protect the company from entering the Halls of the Disreputable.

    An individual’s and organization’s reputation are everything.  How are you assuring both are protected?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Value from Elon Musk’s ‘Idiot Index’?

    Value from Elon Musk’s ‘Idiot Index’?

    “If the ratio is high, you’re an idiot.” – Elon Musk

    “Musk developed the ‘idiot index,’ which calculated how much more costly a finished product was than the cost of its basic materials.  If a product had a high idiot index, its cost could be reduced significantly by devising more efficient manufacturing techniques.”

    Effectively, what he is saying that if the Cost of Goods Sold (COGS) is too high, a product may either become too expensive or not sell well, if at all.  This is the basic Supply-Demand curve from Economics 101.  He is also indicating that Gross Profit will be negatively impacted as well.

    It’s the Cost Structure Stupid

    Paraphrasing the candidacy of Bill Clinton in 1992, an organization needs to develop a cost structure that not only lowers Total Cost as low as possible but sustains this approach while assuring the produced product/service is fit-for-purpose.

    According to the Corporate Finance Institute, “Cost structure refers to the various types of expenses a business incurs and is typically composed of fixed and variable costs.  Costs may also be divided into direct and indirect costs.  Fixed costs are costs that remain unchanged regardless of the amount of output a company produces, while variable costs change with production volume.

    Direct costs are costs that can be attributed to a specific product or service, and they do not need to be allocated to the specific cost object.  Indirect costs are costs that cannot be easily associated with a specific product or activity because they are involved in multiple activities.

    Operating a business must incur some kind of costs, whether it is a retail business or a service provider.  Cost structures differ between retailers and service providers, thus the expense accounts appearing on a financial statement depend on the cost objects, such as a product, service, project, customer or business activity.  Even within a company, cost structure may vary between product lines, divisions or business units, due to the distinct types of activities they perform.”

    We see that cost management is much more than simply lowering the procurement costs of parts or subcomponents going into the manufacturing product.  It is all about the design of the firm and its culture!

    Parasite Control

    One of the challenges all organizations face is ‘Cost Creep.’  Management needs to but guardrails in place to assure a low-cost structure business model remains that way.  Service firms are just as susceptible as manufactures. 

    According to one source circa 2000, professional services cost creep aka parasite control can be defined as, “Too many people whose services are not really required trying to use it as their meal ticket.”  Originally used in the context of the space exploration sector; however, in this writer’s opinion this issue is not restricted to that one industrial segment.

    At one point in my career, I was the executive responsible for a number of large successful simultaneous consulting engagements.  Other projects were either not doing as well or winding down.  Two things started happening.

    First, I discovered that those not on one of my projects were trying to bill their time to one or more projects.  Either as a direct ‘accounting code’ attempt or more frequently as a ‘contributor.’  One individual even tried to charge for his local mileage under the premise that while he lived in Houston, he was tied to a practice in Atlanta.  Thus, in his opinion he was remote.

    Point being, any project can be subject to parasite control.  “Cost Creep” is an ongoing managerial problem that must be shut down when found, the real costs clawed back and allocated correctly.

    Robust Cost Management

    Aggressively addressing costs at all levels is neither idiotic nor stupid.  It has always been a business fact of life and as of this writing, the federal government bureaucracy is discovering it is the ‘new normal.’

    Moreover, this never-ending pursuit of cost perfection will have a new player shortly.  Artificial Intelligence (AI) is rapidly gaining traction in our everyday operations.  The audit process is part of cost management, and we already have examples of the use of AI in the audit process.  Expect more to come and sooner rather than later.

    We have an Operations Management System implementation underway where AI will play a pivotal role in Phase II later this year.  We will report back once it has ‘gone live.’

    What are your organization’s plans to vigorously manage costs?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Process Audit-Musk Style: A Systems Analysis Solution

    Process Audit-Musk Style: A Systems Analysis Solution

    Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements.”  Elon Musk has just changed the Auditing Game!

    Most readers are aware that Elon Musk is leading a small task force of developers to assess the processes and spend of various federal government agencies, i.e., USAID.  This pundit has been of the belief that this group is using Artificial Intelligence (AI) to address this, as he did when assessing the proposed budget in December 2024.

    Observers were astonished with the speed and accuracy of this AI driven assessment.  Gone are the days of thousands of pages of unreadable bills where congressional leaders demand instantaneous passage in the ‘wee hours’ of night.  No more, “We have to pass the bill so that you can find out what is in it.”

    Too Big to Fail, No More!

    The long-standing mantra for major, critical sectors such as Money Center Banks is that they are too big and too important to be allowed to fail.  By this logic, US federal government agencies are at the top of that very short list.

    Assuming the following post on 𝕏 is factual, Musk and company have the developed the basis of a new company.  One that will restructure the way auditing is conducted for large complex organizations.

    The EKO article is a quick and compelling read, and we will not repost here.  Key take aways, this pundit took include that crawling through decades of data:

    • Three subsystems were mapped quickly as were payment flows across agencies.  Patterns were revealed that even career individuals did not know existed
    •  $17 billion in redundant programs were detected and are growing
    • “The beautiful thing about payment systems,” noted a transition official watching their screens, “is that they don’t lie. You can spin policy all day long, but money leaves a trail.”
    • “That trail led to staggering discoveries. Programs marked as independent revealed coordinated funding streams. Grants labeled as humanitarian aid showed curious detours through complex networks. Black budgets once shrouded in secrecy began to unravel under algorithmic scrutiny.”
    • “By 6 AM, Treasury’s career officials began arriving for work. They found systems they thought impenetrable already mapped. Networks they believed hidden already exposed. Power structures built over decades revealed in hours.”
    • “Their traditional defenses—slow-walking decisions, leaking damaging stories, stonewalling requests—proved useless against an opponent moving faster than their systems could react.  By the time they drafted their first memo objecting to this breach, three more systems had already been mapped.”

    The list goes on, but readers get the point and can do their own detailed review.  Also, one expects that much more will be made public in the near future.

    Graphic is taken from the linked 𝕏 article.

    2025-02-10_13h13_41

    Value Proposition to ‘We the People’

    Bureaucrats are hired hands.  The citizens of the United States of America are the client.  Some argue that government is different than a profit or non-profit organization.  But is it?  Isn’t government responsible for delivering goods and services in accordance with its customers wishes?  If not, what is the role of Washington, DC and every state capital?

    This pundit has focused on Operational Excellence (OE). We have developed economic models that document (with support) measurable as well as soft value that can be attained and sustained from OE initiatives.  We believe this approach is applicable to governmental agencies as well.

    Nature of Auditing

    According to the American Society for Quality (ASQ), Auditing has three components:

    • Process Audit–Verification that processes are working within established limits
    • Product Audit–Assess whether or not products and services conform to accepted standards and requirements
    • System Audit–Assessment of management systems, i.e., Operations Management Systems (OMS)

    The principal objective of the systems analysis phase is the specification of what the system needs to do to meet the requirements of end users.  Isn’t what Musk has done the holistic integration of data acquisition and initial assessment of the three components of an Audit?

    There are no longer three components (four if one included financial reporting) but ONE.  Not just Game Changing but the Creative Destruction of the esteemed auditing profession.

    Future Role of Professional Services

    This writer’s career spans the gulf of large software development teams to the configuration using tools by as few as one individual.  This is a pattern many processes deal with, for example fast food, discrete manufacturing, energy exploration, medical and others.

    Jobs are retooled and affected individuals find careers elsewhere and by the way, you’re never too old.  Millions of individuals in the private sector have met this challenge and some more than once.

    Apparently, Musk only had four (4) IT types working on this DOGE project.  Certainly, others had to assess his findings and make decision, but the data acquisition was inexpensive and fast.

    This suggests massive and wrenching changes to the professional services status quo.  Smaller, focused with fewer billable hours compensated teams.  The upside, this may lead to a Value Pricing Model.

    Musk Auditing LLC?

    Has Elon launched another company with the high visibility first customer?  This pundit thinks so.  And what a demo!

     “The US Auditing Services Market size is estimated at USD 51.88 billion in 2025, and is expected to reach USD 60.94 billion by 2030, at a CAGR of 3.27% during the forecast period (2025-2030).”  I rest my case.  Then there is the Rest of the World!

    One lesson for all of us; any profession can be instantly made irrelevant with emerging technologies and the will power of new entrants.  At all costs, stay ahead of the curve.

     

    How will your organization deal with this game changer?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Strategic Sourcing?

    Strategic Sourcing?

    Is outsourcing software development strategic or simply a cost saving method?

    It Depends

    The most infamous words in software development.  Yes, it depends on the task at hand, but this cop out has long been a way to forego the development of a robust economic value and risk assessment.

    According to one vendor, “Engineering started becoming a commodity.”  But is this true if your product and organizational reputation are based on the long-earned perception that your organization provides the very best in safe and cost-effective solutions?

    What is your solution must work all the time, every time, e.g. medical equipment?  The list goes on, but readers get the point.

    Strategic Sourcing

    According to CIPS, the Chartered Institute of Procurement & Supply, “Strategic sourcing is about having a targeted approach to your procurement activity.  A sourcing strategy will help you to formalise the way you gather information, so you can find the best possible value that aligns with your organisation’s goals, long term.  Strategic sourcing is a long-term process and requires continuous re-evaluation of sourcing activities, analysis of the market and recognising your organisations goals.

    Strategic sourcing is important because it can help you save costs through the monitoring of the market and sourcing the right suppliers.  It also acts as a way to maintain long-term relationships with suppliers and they are selected on their compatibility with your organisation’s goals.”

    While strategic sourcing has its value, it cannot replace organization core competency.  These are two very different business requirements.

    Core Competency

    From One definition, “core competencies refer to the capabilities, knowledge, skills and resources that constitute its defining strengths.  Core competencies distinguish a company from other organizations and are, therefore, not easily replicated by those organizations, whether they’re existing competitors or new entrants into its market.”

    Not all engineering meets the test of core competency, but management must perform proper ‘due diligence’ before outsourcing technology and processes that either do or might meet this test.  In other words, effective Risk Profiling.

    Max 8 Headlines, Again

    The once storied aerospace firm, Boeing just can’t seem to catch a break.  A self-made purgatory: the gift that keeps on giving.  Offshoring engineering software development as a cost saving method appears to have backfired.

    Damningly, Multiple investigations – including a Justice Department criminal probe – are trying to unravel how and when critical decisions were made about the Max’s software.  During the crashes of Lion Air and Ethiopian Airlines planes that killed 346 people, investigators suspect, the MCAS system pushed the planes into uncontrollable dives because of bad data from a single sensor.

    That design violated basic principles of redundancy for generations of Boeing engineers, and the company apparently never tested to see how the software would respond, Lemme said.  “It was a stunning fail,” he said.  “A lot of people should have thought of this problem – not one person – and asked about it.”

    To this observer, it appears that this software met the test for core competency.  If this is the case, why would this be outsourced to save a few bucks?  It certainly appears to be outside the organization’s culture of redundancy that has served the organization well for decade.  A third-party vendor most likely would not share this cultural trait.

    How does your organization handle Bet Your Company procurement decisions?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the recently published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • The Crisis/Challenge of AI in 2025

    The Crisis/Challenge of AI in 2025

    “Many processes are repeatable and only data inputs change.”

                                                                                                         — Scott Shemwell, 2023.

    Technology disruption has been with humankind since the first invention.  We get used to one model and suddenly, a new way supplants the old.  Much has been written about the innovation process, and it is not the focus of this Blog to regurgitate the obvious.

    However, Wikipedia states, “Beyond business and economics disruptive innovations can also be considered to disrupt complex systems, including economic and business-related aspects.  Through identifying and analyzing systems for possible points of intervention, one can then design changes focused on disruptive interventions.”  This is the broader focus of this piece.

    Human Redundancy?

    One if the ongoing concerns, “will AI replace humans?”  As of this writing, many do not believe it will, at least anytime soon.  Interestingly, according to Harvard professor Karim Lakhani, “Just as the internet has drastically lowered the cost of information transmission, AI will lower the cost of cognition.”  This is consistent with the traditional path of Information Technology innovation.

    Moreover, this concern is not new.  In her 1983 paper, Ironies of Automation, Lisanne Bainbridge posited that there are inherent problems with automating workflow, humans are still required for tasks that are not easily (if at all) automated.  Oversight of automation requires more training in new job skills, not less.  More recently, the former Chief Scientist of the US Air Force points out the “Original Ironies of Automation is highly relevant with regards to today’s new wave of AI-enhanced automation.  Near misses and incidents involving human automation operations often arise from a mismatch between the properties of the system as a whole and the characteristics of human information processing.”

    In our forthcoming book we address the need for Strong Oversight coupled with Standardization and Risk Tolerance to address the broader need for upskilling today.  According to McKinsey, “Any engineering talent rethink needs to begin with an understanding of how gen AI will affect the product development life cycle.”

    Paraphrasing Mark Twain, “The rumors of Human demise are greatly exaggerated.”  AI is here to stay and should be embraced with cautionary guardrails as it is still immature and subject to error.

    Human Factors

    One pundit refers to the ‘Human Edge‘ as the competitive Advantage we have over machines.  This pundit has long been an advocate for Human Factors when it comes to managing technology, especially emerging technology used for process or production management.  The risk profile otherwise is just to0 steep and high.  One only has to look at the recent travails of the once venerable firm, Boeing.

    2025 and Beyond

    Artificial Technology, its future derivative products and solutions not yet envisioned will continue.  Most likely at the breakneck speed or faster of today.  Remember when we used to think of the Internet growth in terms of Dog YearsInsect Years may be the new metric.

    Many, including this writer as documented in our book, believe AI et al is just entering the explosive growth on the maturation curve.  We must live with it and the most successful will get ‘on board’ when the timing is right for them.

    Exciting times lie before us all and it is a great time to be alive, at least from a technology perspective.

    How are you, your family and work colleagues prepared for the future?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the recently published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Never Ask a Tire Salesperson if You Need New Tires

    Never Ask a Tire Salesperson if You Need New Tires

    This Blog is dedicated to the memory of Eugene Lindsay, 1931-2015.  For many years, Gene was one of my sales representatives, confidant and a friend.  The title of this piece is attributed to him.

    The United States is still in the throes of the election aftermath and the President just pardoned his son; something he repeatedly stated he never would!

    The Not Good, The Bad and Absolutely Ugly!

    Form Information Can Take

    Even Biden’s hitherto staunchest supporters have turned on this so-called liar.  Never mind that he has a decades long visible track record of his verbal latitude with the facts, this seems to have broken the camel’s metaphoric back.  Moreover, this incident has seemingly opened Pandora’s Box regarding the loose running with the truth during the recent election cycle.

    In our forthcoming book (2025), Navigating the Data Minefields: Management’s Guide to Better Decision-Making, we address at length the following types of non-factual information:

    • Misinformation–“It can be a collection of false, fabricated, misleading and/or taken out of context.  However, it does not meet the test of Intent to Deceive.”
    • Disinformation–“The deliberate publication of private information for personal or private interest, as well as the deliberate manipulation of genuine content.”
    • Malinformation–“The deliberate publication of private information for personal or private interest, as well as the deliberate manipulation of genuine content.”
    • Deep-Fake–“Technology that can seamlessly stitch anyone in the world into a video or photo they never actually participated in.”  We saw some of this during this last election.

    When Guardrails Fail

    “The fury which destroys an opponent’s character, would stop at nothing, if barriers were thrown down.  That which is true of the leaders in politics, is true of subordinates.  Political dishonesty in voters runs into general dishonesty, as the rotten speck taints the whole apple.  A community whose politics are conducted by a perpetual breach of honesty on both sides, will be tainted by immorality throughout.  Men will play the same game in their private affairs, which they have learned to play in public matters.  The guile, the crafty vigilance, the dishonest advantage, the cunning sharpness;—the tricks and traps and sly evasions; the equivocal promises, and unequivocal neglect of them, which characterize political action, will equally characterize private action.  The mind has no kitchen to do its dirty work in, while the parlor remains clean.  Dishonesty is an atmosphere; if it comes into one apartment, it penetrates into every one.  Whoever will lie in politics, will lie in traffic.  Whoever will slander in politics, will slander in personal squabbles.  A professor of religion who is a dishonest politician, is a dishonest Christian.  His creed is a perpetual index of his hypocrisy.”

    Henry Ward Beecher

    “Politics was a necessarily dirty game of treachery and deceit.”

    Dave Robinson

    The tools now available with more yet to come enable nefarious characters to attempt new heights in propaganda.  Joseph Goebbels would be so proud.

    Those of us who they seek to become consumers of valid and reliable information must develop better ‘radar’ detecting mischief in information and/or data.  This will be an ongoing war with significant challenges determining actual facts–truth seeking.  Moreover, misinformation and bias can come from automated solutions including Artificial Intelligence.

    The saying, “If it sounds too good to be truth, it probably is,” applies today as much as ever.  Our book drills down much deeper regarding signs of fabrication.  We must forever be on guard for purveyors of lies are ubiquitous.

    And don’t forget.  Everyone has an agenda–good or some not so virtuous.

    Enter the Tire Salesman

    Gene Lindsay was a lifelong sales representative.  Selling was his stock and trade.  As might be expected from someone with his outgoing personality and background, he had a number of quips about the sales business.  The satire of this Blog title has stuck with me over the years.

    The obvious response is NOT to trust a sales representative of tires if you don’t know if you need one or more of his/her products.  Gene knew that professionalism and helping prospects/client to make the right decision paid more with greater personal rewards in the long run than ‘stretching’ the truth for immediate gratification/commission.

    NO is the appropriate sales objection in response to a tire sale representative, if in fact you do not need tires at this time.  Ethics and truth shines through and yes, someday we all will need tires and hopefully we will turn to Gene’s proteges.

    The Truth Will Set You Free

    We all must attain and sustain the mantel of a knowledgeable (buyer) consumer of information.  Our personal and professional success depends on this skill.  Moreover, teach your children, colleagues, friends and relatives this skill as well.  They will thank you for it every day they are required to make decisions.

    Our marketing buzz word driven world has invented a number of descriptions for those who wish us ill, scammers, porch pirates, politicians who ‘walk back’ statements (give me a break), etc. These individuals are just liars and thieves and should be vilified.  We should not credit them with some panache because of their chosen path.

    While some politicians may not actually break the law, their states expose who they truly are.  As Beecher stated, “Men will play the same game in their private affairs, which they have learned to play in public matters.”  In other words, the philosophy, “We are what we eat,” is inviolate.

    How do you and your organization determine whether information presented is tainted and/or past it’s “sell by date?”

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the recently published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Operational Excellence Enabled by Leadership in Technology

    Operational Excellence Enabled by Leadership in Technology

    Both books focus on the use of advanced information technologies to attain and sustain Operational Excellence.  Today, organizations are drinking from a firehose of advanced solutions such as Big Data, Artificial Intelligence, Machine Learning, Business Intelligence, Virtual Reality, Digital Twins and much more.

    Moreover, the roles of executives at all levels are changing.  It is no longer satisfactory to leave major decision to Chief Technology/Digital/Information types.  Everyone has a stake in these (in some case $100 million or more, bet you company decisions).  For example,

    • The business need must be identified, verified and a detailed plan put in place to acquire and implement the technology of choice.
    • Is this aligned with organizational objectives?
    • How will these new technologies integrate into existing systems, if at all?
    • Does the organization have the maturity to undertake this process?  In other words, is it culturally ready and if not, what must be done to get ready?  Examples include upskilling the workforce, what new skills will be needed and so forth.

    The list is lengthy and detailed which is further explained the new book mentioned.  Additionally, what role do non-IT executives play in this process.  The Blogger believes is it no longer satisfactory to outsource the future ‘core competencies’ to the technology staff or key third parties, including Systems Integrators.  The so-called experts.  What agendas do these parties have and are they aligned with the organization mission and strategy?

    Bet Your Career

    These advanced and emerging and sometimes very immature software solutions will touch every division, department and individual employees as well at the organizational ecosystem.  Poor performance will end careers and possibly organizations.  As always, there will be winners and losers, both at the organization level as well as individuals.

    We could go on, but readers get the point.  This is game-changing for industry sectors, organizations including government agencies and finally for individuals.  Big decisions will need to be made and soon.

    What are you doing to prepare of this transformational tsunami?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Let’s Test Artificial Intelligence

    Let’s Test Artificial Intelligence

    This author is working on a book to be published in early 2025 that addresses issues about the decision to procure and implement today’s exploding technologies such as Artificial Intelligence (AI).  So, for this edition, we wanted to try something new.  We are going to ask Chat GPT how to sell Artificial Intelligence and glean knowledge from this non-human response.

    We will ask the following and present the AI response.  Do to space limitations we will limit the length of the AI answer.  Finally, how does the AI response compare to experience?

    Question: What are the Top Ten B2B Sales Objections?

    We are licensed and used ‘Chatbot Pro powered by OpenAI.’ to obtain the following response:

    In B2B sales, encountering objections is common. Here are ten of the most frequent objections sales professionals may face:

    1. Price Concerns: “It’s too expensive.” Buyers often worry about how a purchase impacts their budget.

    2. Need for Approval: “I need to get this approved by my manager.” This highlights the longer decision-making process in B2B environments.

    3. Existing Vendor Loyalty: “We’re already working with another provider.” Customers may be reluctant to change suppliers due to established relationships.

    4. Timing Issues: “We’re not ready to make a decision right now.” This can signal that the buyer needs more time or is in a different stage of their purchasing journey.

    5. Lack of Trust: “I don’t know enough about your company.” Prospects may require more assurance regarding the credibility and track record of the vendor.

    6. Concerns Over ROI: “How can you guarantee a return on investment?” Buyers want assurance that the product or service will add value to their business.

    7. Complexity of Implementation: “The implementation process seems complicated.” Prospects may fear that adopting a new solution could disrupt their operations.

    8. Product Fit: “I’m not sure this meets our specific needs.” For B2B buyers, product alignment with their unique requirements is vital.

    9. Potential Risks: “What if it doesn’t work for us?” Buyers may worry about the risks associated with adopting new solutions or the potential for failure.

    10. Economic Conditions: “Given the current economic climate, we need to be cautious.” External factors, such as economic downturns, can lead to increased scrutiny on new expenditures.

    Addressing these objections effectively is crucial for closing deals in the B2B space.

    This is pretty impressive.  It is a simple example of the power this set of technologies can deliver if used properly.  Readers may remember an example of how not to use AI.  Some examples can be found in our Blog edition, How Stupid is AI?  Humans still develop Artificial Intelligence solutions.  Therefore, the relative value of this suite of technologies isa function of the expertise of those seeking to solve various difficult challenges.

    What Unreleased Value will you Address with AI and Why?

    We are pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • The Times They Are a Changin!

    The Times They Are a Changin!

    Creative destruction is the dismantling of long-standing practices in order to make way for innovation and is seen as a driving force of capitalism.

    We live in an era of hyper-change.  Technology to be sure, but all social constructs are under duress.  The question is, how will all of us at an individual level deal with these enormous pressures?

    The statement, “The only constant is change” remains a basic truism.  From the time of our birth until our death we  undergo physical and psychological transformation.  At this writer’s age, I have been through more than seven decades of evolvement.  With hopefully a few more cycles in the future.

    Joseph Schumpeter (1883–1950) coined the seemingly paradoxical term “creative destruction,” and generations of economists have adopted it as a shorthand description of the free market’s messy way of delivering progress.

    The question is, would we have it any other way?  Some central government (most likely unelected) bureaucrat dictating how we should respond to social/economic forces is not only anti-American it is Fascist if not Communist policy.

    If Lenin and the Bolsheviks prevail in the upcoming US presential election, get ready for the disruption of life as we know it.  Welcome to East Berlin, circa 1960s.

    How will you preserver Capitalism, the best, worse, social construct?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Is Chivalry Dead?

    Is Chivalry Dead?

    Some still believe that an individual’s word is his/her bond.  Or that the Marquess of Queensberry Rules still apply.  Sadly, for many, these statements are outdated.

    Blockchain is a, “decentralized digital ledger that securely stores records across a network of computers in a way that is transparent, immutable, and resistant to tampering.”  This is the reason it is famous for cryptocurrencies and lesser known but as important as the backbone of secure Supply Chain Management and invoicing/payment systems.  In this era of complex global business relationships with millions if not billions of transaction each year, the blockchain SCM is essential.

    And Yet!

    Not only are the well known and often comical scams running strong, some executives still seek to take advantage of the unwary and naive.  Guess both types of thieves will always be with us.  In addition to a lifetime of dealing with those who seek success at the expense of others, here are two recent use cases taken from the last 18 months, of which this Blogger has personal knowledge.

    The Handshake

    A small supplier of leased equipment to heavy industry ‘cut’ a deal with another small firm to lease equipment to a much larger organization of which the small firm had a business relationship.  In this case contract negotiations broke down but the equipment supplier shipped the equipment on a handshake and assurances the ‘paper’ was not necessary.

    As of this writing, there is a great deal of animosity and non-payment.  Likely, legal action will be taken to the detriment of both these small firms.

    The Contract Did Not Address

    In another ongoing situation, a one page agreement provided by the sales person of a small firm was accepted by the small buying organization.  No provisions we provided for accidents or incidents while the equipment was in the possession of the seller, but making changes to the total solution by a 3rd party who was partially directed by an engineer representing the buyer.

    A resulting fire rendered the equipment unsalvageable and the finger pointing commenced.  This was compounded, as the buyer’s engineer kept few if any notes and most communication was verbal.  The who will pay for the damage is still uncertain, as are next steps.

    Trust But Verify

    Chivalry is not defined as it was in the day of the knights and I think rightfully so, as we are not taking our swords to the field of battle against those believed to have wronged us.

    Contracts need not be the lengthy small print most think they are.  A contract must start with an offer (proposal) and its acceptance.  The do not need to be in writing but usually are.  They must be legal and have consideration (value exchange).  Finally, the contract is between ‘Capable Parties,’ those qualified to enter the agreement.  The written agreement typically has standard clauses or provisions including but not limited to assignments, arbitration, amendments, modification, notices, choice of law, force majeure and more.

    An average written contract would have saved all parties in the two use cases from a lot of personal and organizational grief.

    Finally, most larger organizations have put in place Operations Management Systems.  They go by a number of names but their purpose is to assure the contract is adhered too, especially for a complex project as well as document performance for the protection of all involved.

    Our firm has been directly active in this field for about 15 years but working in the area for over 50 years.  We have developed our software solution Smart OpEx that enables this business model for the benefit of all parties involved.  The proverbial “He said–She said,” goes away.  This has been addresses previously and more information is available on our website.

    Chivalry May Not Be Dead, but Consider that Handshake Management as Expired.  How will you manage even small business relationships going forward?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • A Model for Technology Adoption

    A Model for Technology Adoption

    Oh My, I am Swamped by this Firehose of New Technologies.  How can I Understand, Much Less Use These Tools?

    Like most of us, our job is not about new bigger, better, faster IT.  We have the daily grind to attend to and quarterly metrics to make.  What we need from IT providers (internal and external) are the solutions and tools we need to do our jobs.  But how do we know what are the right software solutions and which will disappoint us?

    This is Easier than You Think

    In our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making we address technology adoption issues at length.  However, while you are waiting to order your copy of these guidelines, there are a few things you can begin with.

    Ask yourself the following questions:

    • What is the quality of your data and how is it used in decision-making processes.?
    • How much do you and your organization know about the challenges and trends in Big Data and associated applications, such as Artificial Intelligence (AI)?
    • How ready is your organization to fund and implement new advanced software/cloud applications?
    • Does your organization know how to realize the full and measurable economic value from these technologies?
    • What is your organization’s appetite for the risks involved from implementing new technologies?
    • How will these technologies be used in your organization?

    Getting a handle on these few questions will give you and your organization a good start in this journey.

    Final Thoughts

    One can make a case that the advent of new information technologies is ramping up.  The expectations this author has for AI, for instance, is just beginning.  Why and How organization take advantage of these solutions is not longer in the hands of the Chief Information Officer or other ‘C’ level individual responsible for keeping the firm abreast of advances.  These are now corner office decisions, and in some cases the Board of Directors will have to concur and/or approve.

    How are you preparing yourself and your organization the Brave New World?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • What Does ‘Systemic’ Actually Mean?

    What Does ‘Systemic’ Actually Mean?

    The word Systemic is tossed around quite loosely these days.  Especially when discussing social issues and politics.

    But what does it really mean when we say something is systemic by nature?  By one definition it is, “Of or relating to a system or a system and other relating to or affecting the entire body or an entire organism.”  Indeed a broad judgement.

    So when we say an entire nation is a systemically ‘blank blank,’ does that include the prognosticator that is making that statement?  Are those caught in the cross hairs of a so called systemic belief equally feel the same way about all other groups?  Not bloody likely as my Brit buddies say.

    How Do We Define a System?

    One definition of the word includes the world or universe.  Typically, we think of something smaller and ‘bounded.’  What do we mean by bounded?  Readers might be surprised that this term is a mathematical term describing a function, sequence or variation of a function.  In layman’s terms, systems have limits whether the human body, an organization, or society.

    Systems also have ecosystems and are not all organic in and of them selves and they interact with other systems.  For example, a commercial firm has suppliers and customers as well as local governments and even media outlets.

    Therefore, complexity is an inherent components and human constituents to ALL systems.  This stands by reason in our very robust and diverse world today.

    As such human behavior can take many different decision paths regarding any given issue.  We discuss these causal affects in our 2017 piece, Excellent Behaviors: Assessing Relationships in the Operational Excellence Ecosystem.

    It Is Not That Easy

    Defining the systemic nature of any system is very difficult.  NO system can be defined by one word.  Systems are complex sets of moving interdependent parts whose boundary is often ill defined.

    Decision makers must assure they are using valid and reliability data as they define the problem they are trying to solve.  Without such preparation, the answer put forth may be incorrect or meaningless.

    Next time a colleague or pundit is tossing around the word ‘systemic’ as them what they mean and when they say it means ALL, ask them how do they know that?

    In and of itself the term is meaningless.  Without a detailed definition of the system being discussed, good decisions are not possible and most likely will be poorly implemented with predictable results.

    So if you believe a system is a mess, how do you go about fixing?  Methodical or emotional?  One will work better that the other approach.

    What do you mean when you say something is systemic?

    If you need help with your complex system, see below and contact us.

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Artificial Stupidity

    Artificial Stupidity

    Listen closely and pay attention as our menu has changed.

    The frustration to the automated phone operator are legend.  All of us have had our issues with this form of (non) customer service.

    Recently this pundit placed a call at a number provided by the vendor and went though all the (voice) menu items, only to hit the ‘other’ button.  At this point, I was advised to dial the number I already had.  So much for Artificial Intelligence (AI) and welcome to the era of Artificial Stupidity.

    Firms are all jumping on the AI bandwagon, even though the technology is immature at best.   Sound like the dot.com bomb of a quarter of a century ago.  One wonders, what damage to their brand are the organizations incurring?

    Enter the MVP Mindset

    In recent years the software development sector has ‘Dumbing Down’ the level of  product commerciality.  Minimum Viable Product or MVP can be defined as, “The version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”  Used to be called BETA in the good old days.  Now MVP is often seen as THE commercially released product.  Dah, hence the issues, frustration and lack of credibility in so-called AI solutions.

    All Things AI

    As mentioned, AI is all the rage.  Much like a fashion statement. everyone is jumping on that bandwagon.  But does it work?  Moreover, it encompasses a large spectrum of operations.

    Basically, anything that need big data crunching.  Yet crunching numbers is only interesting at best.  What problem is being solved?  This is where the weakness continues.  Algorithms are only as good as their author.  Some argue machines will take over this task, but one doubts anytime soon.  For example, jet engine commercial airlines are over 65 years old but increasingly seem to have construction/maintenance issues.  What makes us think this technology will be any different?  The Technology Adoption curve can be very lengthy and full of potholes.

    The judicious use of commercial quality software makes the most sense.  Just because every one is doing it is not a shareholder value added.  In many cases a sloppy approach actually decreases equity value.

    What is your organization’s approach to new technology and how does it add value?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • How Effective at Multitasking are We?

    How Effective at Multitasking are We?

    According to no less than the Cleveland Clinic, ” Studies (regarding multitasking) show it makes us less efficient and more prone to errors.”

    Cleveland Clinic goes on to make the case:

    • When tasks are easy and routine such as, “like listening to music while walking, or folding laundry while watching TV,” these are generally not a problem.
    • However, when tasks are difficult and complex the situation changes dramatically and attempts at multitasking can be dangerous and even deadly.

    Many of us live in neighborhoods where drivers can be fined if they talk on a cell phone (even handsfree) in a school zone.  Another example is the Federal Aviation Administration’s (FAA) Sterile Cockpit Rule which states, ” requiring pilots to refrain from non-essential activities during critical phases of flight, normally below 10,000 feet (3,048 meters).”

    Moreover, multitasking does not just have to be balancing a number of concurrent tasks, it can also  include managing tasks against some criteria, i.e. budget constraints.

    Safety, Safety, Safety

    In the blog series, as well as a host of publications include our 2014 book,  Implementing a Culture of Safety: A Roadmap to Performance-Based Compliance we have sought to drive the need for ALL organizations in the Critical Infrastructure sectors to live have a strong Safety Culture coupled with High Reliability operating performance.

    Meetings, Meetings, Meetings

    Similarly, many executives seem to prefer to spend their days going from meeting to meeting.  The belief is often that keeping busy is a proxy for progress.  In reality, it usually is not.

    Final Thoughts

    The referenced Cleveland Clinic article goes on to say, “The more we multitask, the less we actually accomplish, because we slowly lose our ability to focus enough to learn.”  In this multitasker, this sentence says it all.

    It is easy to watch TV while doing daily chores.  I do this all the time.  It is an entirely different matter to managing an offshore drilling process multitasking.  The systemic mistakes made in 2010 on the Deepwater Horizon are capture in detail in the book, Deepwater Horizon: A Systems Analysis of the Macondo Disaster.  Lessons learned are applicable to all in complex working environments.

    Does your organization favor multitaskers over those who focus?  If so, stakeholder value is likely degrading.

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Burrattery

    Burrattery

    Burr!  Its winter in the northern hemisphere and many shiver from the cold.  The ‘Many’ include batteries.

    We have know for generations that cold weather negatively affects electrical batteries.  So, it should come as no surprise that Electric Vehicles (EVs) performance can suffer greatly when the temperatures are extremely cold.  This phenomenon is not limited to this power source, diesel engines face similar challenges at very low temperatures.

    Is It All Hype?

    The IT research firm, Gartner has developed a model describing the process from the inception of new technologies to their general acceptance.  The Gartner Hype Cycle is widely viewed as a reasonable model of this process and is applied to a wide variety of technological innovations.  As the title suggests, technology undergoes a process of innovation, disappointment and finally broad acceptance.  Moreover, this process can take many years with the demise of many startup companies that were perhaps even too early in the process.

    According to Gartner, “Data-enabled services, electrification and smart cabins are a part of many technologies in this Hype Cycle.  Most of these technologies continue to be in the Innovation Trigger and Peak of Inflated Expectations, showing they have a lot of potential to disrupt the automotive space, but yet have some way to go before reaching mainstream adoption.”

    Diffusion of Innovations

    Most readers are probably familiar with the so-called Technology Adoption model which is composed of five types of users/buyers:

    1. Innovators
    2. Early Adopters
    3. Early Majority
    4. Late Majority
    5. Laggards

    For these and more reasons (including high prices), it seems that EVs may have a way to go before wide acceptance with more robust battery technologies.  Finally, we previously challenged the perceived low Carbon Footprint of batteries and documented these technologies are not as green as portrayed.  Interested readers can take a look at our blog Crippling Green discussion regarding the economics of Climate Change.

    Where does your organization fall on either or both of these curves for battery technologies?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • V R T

    V R T

    In our forthcoming book, “Navigating the Data Minefields: Management’s Guide to Better Decision-Making”  we coined the term, Valid, Reliable and Timely (VRT).  “This term identifies all data dimensions including its temporal component.”

    Check Up

    When we go to the doctor we expect that the information conferred by this professional is Correct, Consistent with the current medical knowledge base and Relevant to our present.  If it is not, the confidence in the diagnosis degrades and can even lead to malpractice driven legal issues.

    One of the issues a patient faces is the significant difference in the knowledge base between the medical professional and the layperson sitting across of him/her.  Many accept the statements of the professional as gospel.  Sometimes to their regret.

    Enter the Knowledgeable Buyer

    We live in a technological era even though many of us are technologist.  Often the technology itself is user friendly and reduces our core knowledge.

    How many of us rely on a calculator or spreadsheet to the extent our math skills have suffered?

    This Baby Boomer spent much of his career on the bleeding edge of the computer era.  Today I am not conversant in the details of Acritical Intelligence (AI), Machine Learning, Big Data etc.  However, I know how to ask the right questions!

    One of the Right Questions is embodied in our Economic Value Proposition Matrix (EVPM).  Does this technological investment add value to the organization and if so, how and how much?  In other words, the economic value of the expenditures.  Keep in mind that technology expenditures include not just the cost of the product, its support infrastructure, switching costs and training among other change management processes.

    One does not need to be a medical professional to query the doctor about the recommended action plan.  Common sense and knowledge of our body in the case (or our business) as the saying goes, “is not so common.”  Don’t just jump on the technology bandwagon, do your homework and ask “does this add value to our culture as well?”

    VRT

    Does the proposed project make sense does it sound like it is a Valid or accurate process?  Is it consistent or Reliable and finally is it the right time for our ‘culture’ and organizational maturity to make the change?

    You might be surprised at these common sense answers.

    Does your organization have a plan/process in place to cut through the technology clutter?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our recent blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Data Management for the Non-Technical Executive

    Data Management for the Non-Technical Executive

    “Per McKinsey research from June 2022, nearly 70 percent of the top economic performers, compared with just half of their peers, are using their own software to differentiate themselves from their competitors.”

    McKinsey went on to state that:

    • Digital products are driving the need to embed software across the board
    • Increasingly, more value is being derived in products and services from software
    • The growth of low cost Cloud and AI programming are putting unprecedented power into the hands of the global workforce

    The foundational key to global economies with tightly integrated software into products such as automobiles is DATA.  According to the research firm, IDC approximately 175 zettabytes of data will exist in 2025.  IDC went on to report that one zettabyte is ONE TRILLION GIGABYTES and that to download this amount of data would take 1.8 billion years.

    This amount of data and its criticality to the firm’s success are staggering statements.

    How are organizations going to be able to management this new economy in a meaningful way?  We can’t all be data scientists.

    Enter the Non-Technologist

    It is safe to say that data will be used by all aspects of the organization and its extended supply chain.  Finance, HR, Procurement, Tax, Sales & Marketing, Researchers, Medical Doctors, Facilities Management, etc. are staffed with experts in those fields not necessarily in IT or specifically Data Management.  How are these executives and their staffs be assured the data and software they are using ‘spit out’ the correct results?

    This is a daunting challenge today will only  get worse.  Moreover, the software sector is notorious for it poor quality documentation and many do not follow strict data management protocols.

    On the Horizon

    This blogger has been dealing with technical and later financial and business data of various qualify and sources since at least 1968.  Maybe I have not seen it all, but I have seen a lot including significantly poor data with significant gaps.  Management at all levels are not equipped to understand the underpinnings of the data they are using to make critical decisions.  Is the data Valid and Reliable (accurate and repeatable)?  Many are not even aware of the definition of those simple terms.  How can they trust the data provided?

    This author is pleased to announce that he recently entered into a contract with CRC Press to draft the book, “Navigating the Data Minefield: Management’s Guide to Better Decision-Making” to be published in 2025.

    This book will provide the non-IT software executive with tools and best practices to help her/him assure that the data provided by internal and external provider is of high quality.  It will provide a roadmap model that is straightforward and easy to understand.  It will also provide data and software experts with an understanding on the type of questions management may ask as well as project deliverables expectations.

    Stay tuned we will keep you informed as the exciting project develops.

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our recent blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Valid and Reliable?

    Valid and Reliable?

    The first thing a statistician, data scientist, medical researcher, engineer, social scientist or anyone depending on data is to assess its quality.

    As of this writing, the recent release of the Durham Report suggests that the FBI was lax in their assessment of the alleged Russian influence in the 2016 presidential election cycle.  This resulted in the reporting to the nation and the rest of the globe what appears to be Fake information.  Did it tip the scales on the election and subsequent events?  Not for this pundit to say, albeit this will be the subject of discussion (including some conspiracy theories) for years to come.

    Our case is more straightforward.  Organizations of all types private and public routinely make critical decisions based on poor quality data (including gasps in data).

    The first tenet of quality is to assess the validity and reliability of said data.  Validity refers to the accuracy of the measurement but does NOT determine whether the right process was evaluated.  Reliability is a function of data consistency (can it be reproduced?).

    Error Management

    There are two types of data errors.  Not surprisingly labeled Type I and Type II.  Statistician define Type I errors as providing a ‘false positive’ and Type II a ‘false negative’ result.  One way to asses data is the use of Hypothesis Testing.  Assessment often begins with a hypothesis about a set of data.

    • A ‘null hypothesis‘ makes the assumption that the data is a function of pure chance.
    • The ‘alternative hypothesis‘ assumes the data set is impacted by a non-random cause.

    Moreover, a data set can have multiple hypotheses.

    Data is also classified as Primary or Secondary.  Primary data is that which was collected directly by the data scientist/organization.  Secondary is that which as obtained from a third party.

    This researcher considers Secondary data as more likely to contain errors and needs additional scrutiny.  It appears the FBI data on election interference was Secondary data.

    According to a 2022 Harvard Business Review article, “It costs 10 times as much to complete a unit of work when the data is flawed in any way as it does when the data is good.”  In 2016 HBR reported that according to IBM, decisions made on poor quality data cost $3.1 trillion.  In 2021, the research firm Gartner reported that poor data quality costs the average firm $12.9 million.  For the Fortune 500 alone that is over $3.225 trillion.

    For interested readers, the cited Gartner article provides a set of 12 actions organizations can take to improve their data quality.

    Decision Support

    We must recognize that data quality is an issue and while we can take steps to improve it, the problem is ubiquitous and most likely growing.  We must make the assumption that ALL data has either Type I or Type II errors and act accordingly.

    One approach is the use of the Scientific Method.  This model is developed for the average lay person and can used for business decisions as well as in everyday life.

    Moreover, ALL data sets will be incomplete or have gaps.  Statistical and other decision support tools can deal with this issue.  Finally, the human injects bias into the process as well.

    Coda

    The running joke, “If it is on the Internet, it must be true,” is widely known as satire.  That said, we often trust data due to its source or the fact that a so-called expert is the author, commentator or recommender.  As with many things in life a healthy dose of ‘data’ skepticism is in order.

    What steps is your organization taking to assure decision-making processes are based on high quality data?

    For More Information

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our recent blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Seems Like Yesterday

    Seems Like Yesterday

    Hard to believe that 13 years ago the offshore oil and gas industry changed forever.  On April 20, 2010 the Deepwater Horizon drilling rig exploded, later sank.  “Approximately 134 million gallons of oil had spilled into the Gulf, the largest offshore oil spill in U.S. history.”

    One recent LinkedIn comment suggested that nothing had changed regarding field operation safety.  The right referred to management’s position as SAC (Safety as Convenient).  In other words, business as usual.  This may be the case for some organizations but I think the larger issue is the industry transformation to one of a Culture of Safety aka Safety Culture.

    In the immediate aftermath, this pundit and his colleagues were directly involved in this change process.  Working with the aerospace industry, we put forth new ways of managing the work process to assure field processes were completed properly and in keeping with regulatory requirements.  As part of this effort, we worked with Human Factors experts to help process organizations to sustain High Reliability.

    We believe across a number of fronts the sector has made a lot of progress.  Moreover, in 2015 this pundit was invited to present ‘oil & gas lessons learned’ at the International Atomic Energy Agency Technical Meeting on Developing Improvement Programmes for Safety Culture in Vienna, Austria.

    The Center for Offshore Safety and its Good Practices and Safety and Environmental Management System (SEMS) Certification process has been widely accepted.  Additionally, deepwater well containment rapid response systems such as the Marine Well Containment Company (MWCC) are in place.

    There is always room for improvement; however, it is fair to say the industry has taken the Safety Culture seriously and has made great strides.

    Transformational Tools

    There are a wide variety of tools readily available for organizations interested in adopting a Safety Culture.  These include the Bureau of Safety and Environmental Enforcement’s (BSEE) Safety Culture Policy.

    A Safety Culture is not limited to a single sector or even to private enterprises.  Other examples include NASA, Healthcare and SHRM among others.

    In addition to our 2014 seminal book on the subject, IMPLEMENTING A CULTURE of SAFETY: A ROADMAP FOR PERFORMANCE BASED COMPLIANCE we offer a number tools designed with industry experts to assist with this transformation.  These include:

    Finally, our new book Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability can help as well even if your organization is not a manufacturer.

    If your organization does not have a Safety Culture, why not?

    For More Information

    The photograph source is NOAA.

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

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the just published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our recent blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • And Just Like That!

    And Just Like That!

    Often attributed to the movie character, Forest Gump the title phrase can be interpreted as an abrupt change in one’s life.

    The past few years have brought significant changes to many of us.  Illness, job change, moving to a new location, kids out of school and so it goes.  Disruption can be intimidating, yet it need not be so.

    Life is all about change.  We move from infancy to youth, adulthood and so on.  In each phase our interests and environment are different.  Moreover, we often seek change.  The celebration upon one’s 16th birthday and getting a driver’s license.  In my case turning 25 when my car insurance cost was lowered.

    Society is moving into an era whereby an individual can expand his or her horizon.  No longer is a college degree seen as the price of entry.  Non graduates now have access to IT positions as well as management and other high paying skills.  The focus is moving from having mountains of college debt to having the desire to achieve.  Additionally, the Great Resignation movement is taking root too.

    So What Happens Now?

    In our 2oo9 White Paper, Rapid Response Management: Thriving in the New World Order we coined the term, Velocity of Information which we defined as, “Similar to the economic theory, Velocity of Money, it is the frequency at which information is exchanged.”  Who would have dreamed today’s volumes would be so massive.  Now we are awash in information and disinformation.  Decisions that depend on valid and reliable data are more difficult, not less.

    However, life’s disruptive moments can force us to move forward in another direction.  The recession in 1974 required that this then young individual to more to Louisiana and enter the oil and gas sector.  This was not on my radar at all as late as two months earlier when a recruiter called.

    This life changing moment was not based on valid and reliable data as ‘I did not have clue’ what I was getting into.  Rather the decision was made with almost no knowledge of the subject.  Fifty years later, the rest as they say is history.

    When one door closes, another opens.

    New Relationships

    We have previously discussed the RBC Framework; Relationships, Behaviors, Conditions (aka the situation).  This straightforward model was developed in 1993 to study International Negotiations and we have found it convenient for all manner of human interaction assessments.

    The military refers to the (true)knowledge of one’s environment as Situational Awareness.  In other words if one has a good understanding of what is happening around them, their behaviors should reflect that knowledge.  Subsequently, relationships may change including making new one or leaving old ones.  In my case, the move to Louisiana and entering a new sector is a good example.

    Going Forward

    Forest Gump embraced change and excelled at a number of things despite his handicap.  Disruption was not a threat but an opportunity.  Like Louis Pasteur, one can prepare for change even if the next step is not immediately clear.

    Finally, “The economist Joseph Schumpeter was the first to coin the term “creative destruction.”  Creative destruction is the destruction of old markets and those active in them through innovation, & inventing of new markets, this can be new technologies, methods, business models, services, or products.”  One can argue that the creative destruction cycle time is very short today.

    What are you doing to prepare for your next step?

    For More Information

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

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor for an in press book (to be released in Spring 2023) titled, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For those start-up firms addressing energy (including renewables) challenges, the author is a member of Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give us a shout.

  • Clickbait Redux

    Clickbait Redux

    We are offered the world at the tip of our fingers, But!  There are many prices to pay.  Theft by scam simply by clicking on a great opportunity is getting more sophisticated all the time.

    Recently, this pundit was offered a once in a lifetime possibility if only I would listen to an MS Office (voicemail) sent to my email account.  Seemed OK, how harmful could it be?  Certainty, this world class software provider tool was safe?

    Well, as the saying goes, my mama didn’t raise no fool.  Not saying I won’t be duped at some point, but I like to think the odds are against it.  Tagged as junk, I will never know what the sender had to say.  Nor do I care, since likely it was phishing at best and possibly something worse.

    That said, businesses cannot run on the basis of individual prowess, especially when the scams often exceed hundreds a week or even a day.  Junk mail filters are much better than before but still not perfect and malefactors are always launching cyber organized criminal efforts to supersede defensive protections.

    Equally, if not more important, how many legitimate businesses lose sales or even have their reputations significantly compromise as a result of scams?  If a prospects clicks on your logo and is defrauded, her or she will most likely continue to blame the logo owner and not the criminals.

    Setting the Hook

    Fisherman know how to catch fish.  They know the right locations, time of day, cloudy or not and so forth and so on the land the ‘Big One.’

    On the other hand, digital hackers do not appear to have this ingrained focused instinct.  Perhaps, this skill is not necessary for them.

    Masquerading in plain sight, spammers try to tap into the greed in all of us.  Easy, quick and large these opportunities are attractive and many fall for them.

    As a mentor and advisor to organizations of all sizes, I consistently review product/service and even enterprise value propositions.  Frankly, many are found wanting.  Currently, the Lean Canvas construct and/or Elevator Pitch are models for succinctly posturing a position quickly.

    However, it takes a lot of effort to craft the short piece.  Only then does the firm have something of value for prospects and customers.

    While Fortune 500 et al will remain targets of cyber hacking, it is possible for others to make themselves less attractive to organized crime.  Firms should ask themselves, what is the goal for their web presence?

    In 2019, this blog addressed the “what’s in it for me question” as opposed to collecting ‘Likes.’  That edition contained a real world case study of wrong-headed thinking by a consulting firm collecting the wrong data.  As the client, we did not implement that recommendation.

    There is a fine line between building market ‘Buzz’ and simply collecting ‘Likes’.  However, the real focus should be on building repeat customers.  Recommendations from others, should still be part of the business model.

    Cyber is now an important part of every firm’s business model.  Part of the organization’s cybersecurity model has to be, “Why are individuals coming to the website?”  In other words, “What value are we providing them?”

    What is the Value of a ‘Like’ to your Organization and What is the ‘Risk’ of Obtaining One?

    For More Information

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

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

  • 100

    100

    This edition marks the 100th post in our Critical Mass Blog series.  We have sought to provide thoughtful, unbiased insight into the contemporary business and organizational challenges we all face.  Since our first blog post on November 27, 2017 our world has turned over in ways none expected.  Likely, this trend will continue.

    This series continues a tradition of newsletters, opinion pieces and other on line punditry first begun in 1998 with our New Millennium News.  A bi-monthly email with a subscription base of approximately 7,000 readers.  A huge number at that time.  We estimate that hundreds of thousands or more have benefited from this knowledge transfer.

    Coincidentally, we reach this milestone as we begin the new year–a time of renewal.  We will continue to address critical issues individuals, businesses, agencies and others face as we all navigate an increasingly perilous path.  This series has addressed Human Resource issues including Diversity, Equity and Inclusion (DEI) Teams , the arrival of Smart Technology, International Business, Covid-19, Supply Chain Management, Operational Excellence, Cultural Transformation (including Safety Culture) Sales, Risk Mitigation and of course Leadership.  Today’s organizations must be very good at all of these disciplines!

    Available Tools

    The mission of the Rapid Response Institute (RRI) is to enable our clients with the ability to posture themselves in their market segments so that they can thrive in volatile markets and capitalize on uncertainty, not suffer because of them.  This is especially important for those economic actors in Critical Infrastructure sectors.

    In support of this mission the firm has developed a suite of Intellectual Property (IP) which includes Know How, practical roadmap Books and guidelines as well as Software as a Service (SaaS) solutions among others.  Many readers know that once a process has been standardized with minimal configuration required, the data is the ultimate driver.  This is the heart of most Enterprise Resource Planning (ERP) solutions.

    With advances in technology, RRI has taken these once multi-million dollar solutions to a price point as well as Use Case where all organizations can utilize this capability.  Moreover, our advancements in work flow such as epitomized in our Cross Cultural Serious Games, Economic Value Proposition Matrix, and Smart OpEx (Operations Management System) and Risk Simulation Modeling add immediate and significant value to the challenges faced as articulated above.  Other Free Tools are available as well.

    Pulling It All Together

    The method to our madness is–Operations!!  As some are fond of saying with derision, “It’s All About the Benjamins.”  Well, it actually is.  If ‘for-profit’ firms are not profitable, they fail.  No amount of Environmental, Social, and Governance (ESG) will save them if they cannot deliver to paying customers.

    Everything RRI does helps organizations to deliver stakeholder value, compliant with ESG standards.  That is our Bottom Line and we are also pleased that Dr. Shemwell, Managing Director has been an independent advocate for responsible corporate success since 2004.

    FYI, major losses and legal actions do not enhance stakeholder value.  Neither for employees, local communities or equity holders.  Everyone loses when in terrible scenarios such as Deepwater Horizon, internal bias corporate hubris, poor high reliability processes/human factor shortcomings or lack of actual DEI.

    This journey continues.  Stay tuned for the next 100 editions where will continue to provide our thoughts on relevant matters.  Thank you very much for your readership and support.

    How is Your Organization Positioned for the Next Four Years?

    For More Information

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

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

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

    For more on DEI Standards, see the newly released ISO-30415.

    You can contact this author as well.

  • Getting to Diverse and Inclusive Teams

    Getting to Diverse and Inclusive Teams

    Diversity, Equity, and Inclusion (DEI) Team Models

    There is a tendency to see DEI through the lens of initiatives or often a process semi-outside the daily ‘organizational’ grind.  Does this represent reality?

    Organizations spend countless sums training employees and others they depend on for Operational Excellence performance.  They often trust global Teams to add stakeholder value.

    No less than Microsoft names a software product, Teams.  A tool designed to foster collaboration.

    The Way We Do Business

    Culture is often defined as ‘who we are.’  The approach an organization takes towards its ecosystem.  If this model is an accurate representation, it suggests that when organizations launch initiatives meant to address current social mores, they likely fail or at least do not live up to full potentials.

    Change management, often referred to as transformation often takes on the mantel of ‘you will be changed.’  Contemporarily, take the Covid-19 vaccine or you will be fired!  Not surprisingly, this mandate is resisted and seemingly increasingly with each new warning.

    As of this writing, the all out war (on decrees) has been declared by the likes of the Navy Seals, Health Care Workers, Law Enforcement and others with the demands from the Feds.  Likely, the result will be a draw at best, with the administration quietly acquiescing.  Too many critical, non-replaceable positions are at risk.  Not to mention votes.

    Governance

    In October 2011, we published our first draft of, Asset/Equipment Integrity Governance: Operations–Enterprise Alignment.  We recognized that traditional organizational Governance models were strictly focused on finance and maleficence therein.  The reality is that revenue is generate by operations and as such governance is critical as well.  Safety Culture, is intangible but now required by most organizations in Critical Infrastructure sectors.

    Flash forward to today and Environmental, Social, and Governance (ESG) is the model most organizations use.  Effectively, this expands governance to include a broad range of non-financial commitments.  From this blogger’s perspective, likely DEI will fall under this governance model.  Therefore, moving it from the ‘initiative status’ to the ‘way we do business.’

    Team Building

    This dynamic environment requires workforce upskilling.  The need to constantly assure that individuals have current Knowledge, Skills and Abilities (KSAs) necessary to meet current challenges.  KSAs now include the ability/necessity to work across cultural/diverse lines.

    When one thinks of a ‘team’ it is not a homogenous collection of like minded and ‘like’ individuals.  Teams are a collection of hopefully, ‘fit for purpose’ individuals who comprise the KSAs needs to accomplish the task(s) at hand.  Teams can mirror the discrete views of its members.

    For example, our early research on the subject assessed the different approaches Japanese nationals took when negotiating with white American males.  In each case, the individual players were deemed to be homogenous.

    Nothing could be further from the truth.  Each individual, in this case all males were of different ages, different education, from different regions of their respective countries, married or not and so forth and so on.

    The reality is that individuals do not negotiate deals.  Teams do.   Members of teams, like juries need to arrive at the same place prior to engaging with other collaborative counterparts.

    Juries need to be arrive at consensus.  Likewise, organizational team members must arrive at a similar place internally prior to going forward.  This not to say that individuals must cave to the will of the majority or the Tyranny of the Minority.  It is to say, a common position that all must accept as part of collaboration or consensus.

    Inclusive?

    There is no doubt that token individuals and in some case high profile figureheads have been put forth to ‘prove’ inclusivity.  Thankfully, those days are fading.

    Teams need to have the input of all members, even contrarians.  Often it is the outlier that has the most insight into a difficult problem.  Differences of opinion need to be resolved and a go forward plan agreed upon.

    Often, individuals do not speak up.  Perhaps they are new to the environment, shy or unsure of themselves.  Whatever the reason their input must be sought and at least given a fair hearing.

    Training can help elicit input from the reticent.  Moreover, they help dominate individuals acknowledge and accept said input.

    How Does Your Organization Assure Real Inclusion?

    For More Information

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

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

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

    For more on DEI Standards, see the newly released ISO-30415.

    You can contact this author as well.

  • Are Your DEI Wheels Spinning?

    Are Your DEI Wheels Spinning?

    Originally published as a LinkedIn article on July 6, 2021, this updated version is reprinted here with the permission of the author.  Links to relevant sources are added.

    Lately, many LinkedIn posts bemoan the state of Diversity, Equity, Inclusion (DEI) initiatives. The seeming slow take up of great ideas.

    Some argue that DEI initiatives are no more than window dressing or organizational efforts to stave-off litigation. To others, they have the appearance of one more management initiative that if waited out will simply go away like so many others before.

    Fundamentally, DEI initiatives require change. A change of (B)ehaviors in the face of seemingly new situations or influencing (C)onditions (Circumstances, Capabilities, Cultures, Environments). When these two variables evolve, so do exiting (R)elationships. The RBC model is well established in social science and was first used to model Cross-Cultural (international business) Negotiations.

    It is multi-dimensional including a temporal schema capable of addressing numerous aspects of human behavior. Furthermore, it encompasses cultural as well as other situational aspects such as individual backgrounds.

    We tested this model using Japanese and American executives. This culturally diverse group needed to develop a level of trust if negotiation outcomes were to be successful.

    Likewise, successful DEI initiatives require that culturally diverse groups develop a high level of trust among those working together and/or members of teams.

    “Tell Me and I Forget. Teach Me and I Remember. Involve Me and I Learn”

    Attributed to Benjamin Franklin, this quote tells us all we need to know. The so-called Death by PowerPoint lecture long in vogue are often forgettable. Instruction, along with the homework prerequisite and tests are traditional methods. Finally, engaging individuals, teams, departments and even entire organizations can create long standing sustainable knowledge that is the basis for behavioral transformation.

    Paper based serious games or “games whose purpose is other than entertainment” originated in the late 1960-70s. In a nutshell, this is an interactive training solution. Subsequently, online serious games can incorporate actual scenarios designed to immerse players solving real world challenges.

    Rather than a video game whereby players engage with electronic decision trees, human-to-human serious games train players/teams to deal with diverse yet real colleagues. Collaborative scenarios direct participants to collectively solve problems while learning how their culturally dissimilar counterparts address the same challenge.

    Scenarios can drive engagement by all players including those who may not be typically involved in decision making processes. This is also a safe, no-harm no-foul environment with little to no individual decision-making risk.

    Transformation

    Any successful ‘change’ initiative must answer the What’s in It for Me? question. Humans may resist change if they do not see personal value from such actions. Moreover, while senior executive leadership is required, heavy handed top down My Way or The Highway may result in direct resistance, and/or a more crowed freeway to the exit ramp.

    For example, the current version of the smart phone was first available circa 2007. According to Statista, approximately 1.38 billion smartphones were sold in 2020. Likewise, over 46 percent of the global population own these devices.

    What does this have to do with DEI? In 2006 cellphones were great and becoming ubiquitous. No one knew they needed a smartphone. Our collective Behavioral transformation was caused because the What’s in it for Me question was answered.

    One component of the Conditions criteria, Capability changed as this technology enabled individuals to drive new behaviors based on Apps that emerged. The resulting transformation in our Relationships is well documented, i.e., the use of text as opposed to voice.

    Sustained transformation requires continued energy. The term ‘initiative’ implies a short-term event and one that will pass.

    Trust must be established and maintained. Over time, sustained energy will result in critical mass, or the (statistically significant) number of individuals engaged and trusting each other. This self-sustaining energy is transformation.

    Reframing DEI Initiatives into the RBC Framework can enable dramatic and rapid transformation. Take advantage of these types of cross-cultural models.

    For More Information

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

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

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

    You can contact this author as well.

  • Roadmap to Decision Making In the ‘Smart’ Era

    Roadmap to Decision Making In the ‘Smart’ Era

    “Nothing is more difficult, and therefore more precious, than to be able to decide.”

    Napoleon Bonaparte

    Volumes have been written on decision-making and this pundit has offered his share of insight and comment on the subject as well.  Some of our comments regard the appropriateness of the human intercession in electronic decision making.  Others raise questions regarding algorithm fallibility.  Moreover, Human Factors must be considered for any technology initiative which are becoming increasingly important.

    If one unpacks the previous paragraph a substantial level of complexity emerges.  As complexity increases so does risk and the need from proper governance.  However, many still see this potential transformation through the lens of just another IT initiative.

    Roadmap

    The oil and gas industry faced a similar dilemma at the dawn of the 21st Century.  At the time, referred to as DOFF or Digital Oilfield of the Future, a plethora of technologies became available.  The task was to transform 100 plus years of traditional operation to what is now referred to as the Digital Oilfield, aka Integrated Operations and a number or synonyms.  While this processes continues to evolve as new solutions emerge, i.e., Cloud, at the time much was trial and error.

    In conjunction with industry leadership, we released our Roadmap to Enterprise Optimization: A Guide to the Impact of Information Driven Field Operations on the Petroleum Corporation in the fall of 2004.  We believe it was the first industry (POSC) supported effort that was not simply research but a ‘bona fide’ action plan or roadmap to success based on industry/other knowledge, standards, economic value and best practices.

    Click for full size Integrated Operations Framework or graphic

    Since then, we have updated this roadmap into an Operational Excellence Platform.  Note that Integrated Operations is a key component.  The platform is a robust detailed solution that is available not just to the energy sector but all sectors identified by Homeland Security as Critical Infrastructure.  These sectors were recently identified as susceptible to hacking by the US government.

    Getting Smart

    Enormous corporate (shareholder) wealth has been destroyed implementing ‘game changing’ technology enabled transformation efforts.  Are we about to do that again, getting smart?  The easy answer is yes, but it does not have to be.

    Roadmap constructs are well understood and provide guidance.  In some models the step by step process provide practitioners with well defined models that can lead to success–defined as on time and under budget performance against Key Performance Indicators (KPIs).

    We are in the process of writing a book, to be released in 2022.  One chapter will define a roadmap for the transformation to ‘Smart’ for a major industrial segment.  As with earlier works, it will focus on the human element aligned with a technology assessment process.

    Get Smart was a comedic TV show spoofing the Cold War ‘spy’ environment of the 1960s.  Getting Smart today may not be a lot different.  The goal under a ‘Cone of Silence‘ was to attain and sustain competitive advantaged achieving superior stakeholder returns.

    Getting smart in 2021 will require a ‘Roadmap to Smart.’  A set of ‘to do’ processes that assures success.

    What is your Organization’s Plan to put Smart Decisioning Making Processes in Place?

     

    For More Information

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

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

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

    You can contact this author as well.

  • ESG Implementation–Strong v Weak Revisited

    ESG Implementation–Strong v Weak Revisited

    “A healthy corporation acts on the interests of its stakeholders and customers”

    — Ari Melber, Journalist

    Currently, organizations are being implored to implement Environmental, Social, and Governance (ESG) driven business models.   Proponents even suggest that investment in organizations that do not have this imprimatur should be avoided or even divested.

    However, one wonders what has changed?  Successful firms, private and public have long understood that they must add value to their constituencies.  One example, a few decades ago an energy services provider used its high volume oilfield pumps to help a small town in Kansas where it had a district office drain flood waters.  Why would they do this?  Perhaps because employees lived in this community or perhaps it was just the right thing to do.

    Flash forward and we find organizational largess still in place.  During the recent Texas freeze, a local furniture retailer opened its doors to dispossessed individuals and families.  The owner has a long record of supporting the community and his responses to local disasters is legendary.

    After the Deepwater Horizon incident in April 2010, our firm started to look at Asset Integrity issues in oilfield operations.  Our discoveries transcended several Critical Infrastructure segments.  The recent failure of the Colonial Pipeline is a manifestation of issues uncovered yet not resolved more than a decade ago!

    Focus on Operations

    In 2011, we posited that organizational governance was not just a financial issue at the ‘C’ level.  Rather its true focus should be at the revenue generating asset level.  This led to our 2011 groundbreaking monograph, Asset/Equipment Integrity Governance: Operations–Enterprise Alignment.  Therein, we posited a new governance model that incorporated the ESG components widely discussed today.

    Moreover, in 2014 our book, IMPLEMENTING A CULTURE of SAFETY: A ROADMAP FOR PERFORMANCE BASED COMPLIANCE identified the requirement for organizations in the Critical Infrastructure space to change governance models to one of Strong Bond.

    Following the release of our AIG model, we put forth a Strong v Weak governance model to manage High Reliability Organizations (HRO) necessary for firms in Critical Infrastructure sectors.  Strong Bond is appropriate for organizations in Critical Infrastructure segments, while Weak Bonds may be better for retail.

    One suspects that ESG is another tick in the box.  If ten years (or earlier) from now another critical system fails, it will not be because HRM processes were not followed or ESG verbiage was in the annual report Letter to Shareholders; it will be because nothing really changed.  As of this writing the US Federal government is advising organizations in Critical Infrastructure sectors to more aggressively address cybersecurity risks.

    Why is this? Do Boards and CEOs need politicians and bureaucrats to tell them about the details of running a business?  If they do, investors may want to revisit their portfolios.

    One suspects that the ESG fad will fade. There will always be a new management mantra that consultants will put forth.  Well run organizations will remain well run.  Others not so much.

    Governance models come and go.  Regardless, how will you assure your organization is well run?

    For More Information

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

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

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

    You can contact this author as well.