The Rapid Response Institute

Tag: change

  • AI–What’s Your Number?

    AI–What’s Your Number?

    There is a great deal of hype regarding AI, some is justified and some not so much.  Pundits, including this one talk about the value an organization will get and, in some cases, immediately.  But what is the actual measurable value a firm can realistically expect?

    I recently used a free AI Value Calculator, asking how an oil refinery could become more effective and safer. The following response was received:

    “**Value Proposition:** At [Your Company Name], we understand that oil companies face increasing pressure to enhance safety and efficiency within refinery operations. Our innovative solutions are designed specifically to address the unique challenges of the refining industry. By integrating advanced technology and safety protocols, we empower your team to operate more effectively while minimizing risks. With our expertise, you can expect: – **Increased Operational Efficiency:** Streamline processes with cutting-edge tools that boost productivity and reduce downtime. – **Enhanced Safety Measures:** Implement systems that prioritize employee safety and ensure compliance with industry regulations. – **Real-Time Monitoring:** Gain insights through data analytics that allow for proactive decision-making and immediate response to potential hazards. Choose [Your Company Name] as your partner in revolutionizing refinery operations, ensuring you meet both efficiency goals and safety standards. Together, we can create not just a safer workplace, but also a more effective refinery that drives success in today’s competitive landscape. For more information or to schedule a consultation, please contact us at [phone number] or visit our website at [website URL]. Let’s work together to pave the way for a more secure and productive refining environment.”

    The Problem with Value

    There are several problems with this response, and I (the user) am part of that problem.

    • My prompts were minimal and not specific
    • The response was pablum, as it did not tell me anything I did not already know.
    • What do phrases like, “Implement systems that prioritize employee safety and ensure compliance with industry regulations,” actually mean and how do I accomplish that?
    • What do I tell the “C” level executive that she can expect to see on our bottom line as a result of this expenditure and what is the risk profile?

    Determining the economic value proposition for any capital investment project has always been a challenge and is difficult to accomplish, especially when the list of intangibles is long.  The recent issues surrounding Cracker Barrel rebranding is a case in point.

    The process of assessing possible value and the associated risk of attaining said value from investments is not trivial.  It takes a lot of thinking and iterative re-thinking from a knowledgeable and qualified team, as well as input from others.  And in my opinion, there has to be a dollar value that can be documented and defended–meaning, it is a solid assessment and not wishful thinking.

    The Journey to Measurable Value

    “If you don’t know where you are going, you’ll end up someplace else.”― Yogi Berra

    We been conducting economic and financial assessments of capital projects for over two decades. Our Economic Value Proposition Matrix (EVPM) has been developed and curated with organizations in the Critical Infrastructure Sector.  It meets and exceeds the tough requirements of some of the most prestegious global firm and has demonstrated its ability to provide decision makers with an economic and financial “What If” and “Iterative” model of proposed spend before a dime is committed to the project.  We love tough questions and have learned most that are used.  Moreover, it Risk Assessment section if one of the most robust available.

    It is being used for AI Spend assessments and a case study will be available in our forthcoming book, from CRC Press, The Transformation of Our Spreadsheet Society: Moving Towards a Nonlinear, Big Data Enabled AI Environment, to be released by early 2026.

    Is AI Different Than Other Capital Expenditures (CAPEX)?

    The traditional response from IT providers is, It Depends!  In some ways this is a correct statement. However, industry/individual organizations have been through existential difficulties before and frequently.

    Most IT CAPEX is either Science/Engineering or transactional, i.e., ERP.  However, much of AI centers on behavior and therefore, involve an addition dimension–latent variables.  We have been interested in latent variables since the early 1990s and first published our approach towards learning about their impact on behavioral systems in my 1996 doctoral dissertation, Cross-cultural negotiations between Japanese and American businessmen: A systems analysis (exploratory study).

    In our forthcoming book by CRC Press, The Transformation of Our Spreadsheet Society: Moving Towards a Nonlinear, Big Data Enabled AI Environment, we develop a detail approach and representative AI model about the value that can be identified and measured using latent variable.

    So, what is a latent variable?  Largely unknown, these variables are essential in the complex data analysis and modeling needed in statistics, machine learning, and other scientific assessments.

    Very important–They cannot be measured directly but can be inferred from other measurable variables.

    This is a major and usually unrecognized problem when attempting to place an economic value on a project yet to start, i.e., the planning and funding stage.

    Our upgraded EVPM model takes latent variables into consideration giving management greater insight into the costs, return and ultimate value of AI investments.  We believe that unless this dimension is properly assessed, calculated values are WRONG and will not result in the value proponent’s advance.

    Look for further details regarding our economic value of AI model and feel free to contact us if you have specific needs or questions.

    Is your AI Economic Value Assessment model robust enough to bet your career on?

  • 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

    Ordering Information

    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

    Ordering Information

    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.

  • 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

    Ordering Information

    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.

  • Who Owns the Intellectual Property Generated by AI?

    Who Owns the Intellectual Property Generated by AI?

    Disclaimer:  The author is not an attorney, and this document is not meant to be a legal opinion in any sense.  Interested readers should contact their legal counsel for any Intellectual Property (IP) determination.  This blog simply raises a question that is generally not addressed regarding ownership rights of the content and products developed using artificial intelligence emerging technologies.  One suspects that going forward, this issue will become more forefront.

    Moreover, this is a fast-moving environment with new local laws and promulgated regulations continuously updated.  Readers are cautioned that some of the materials herein may be quickly dated.  Appropriate legal counsel and other experts should be consulted.

    Like most new software technologies, there is a period of the Wild West where anything seems to go.  Artificial Intelligence (AI) has been no different, but now these horses are beginning to be reined in.

    It is generally accepted that the ownership of content developed using third party software belongs to the generator of said content.  Data, the results of analytics and their interpretation, computer generated audio video materials, etc. are generally covered by this convention and codified by law.  The spreadsheet vendor does not own the financial analysis that leads to major value add to the firm.  Conversely, if the financial model is flawed, the software developer is generally not liable.

    However, Artificial Intelligence is a different technology model.  It dictates that organizational AI policies recognize the disruptive change caused.  For example, the publisher of my new book, Navigating the Data Minefields: Management’s Guide to Better Decision-Making has issued its author, AI Policy.

    An AI engine searches for data and information from a wide variety of sources.  It then amalgamates and analyzes and/or develops what some consider a new product or solution–document, image, or new approach/model, e.g. medical technique.  However, did the AI secure permission from the data owner(s) or even cite its source(s)?  The most likely answer is no.  A follow-on statement might be, “why do we need that?”

    Copyright

    According to the U.S. Copyright Office, “Copyright is a type of intellectual property that protects original works of authorship as soon as an author fixes the work in a tangible form of expression.  In copyright law, there are a lot of different types of works, including paintings, photographs, illustrations, musical compositions, sound recordings, computer programs, books, poems, blog posts, movies, architectural works, plays, and so much more!”  The Copyright Office goes on to state, “Works are original when they are independently created by a human author and have a minimal degree of creativity.”
     
    In the UK, “Two conflicting views emerged.  The tech sector believes the copyright to AI-generated content should belong to users, whereas the creative sector wants this content to be excluded from ownership completely.”
     
    From a 2022 Reuters article about a lawsuit over, Gen AI generated content.
    “Accordingly, unless a generative AI is used in such a manner that its output would be recognizably linked to some person or entity who is likely to actively police the use of their works and whose works are likely to be registered, the risk of the generative AI’s users being sued for infringement seems low.
     
    In practice, the legal issues surrounding generative AI mean that its outputs should be handled in a manner similar to materials covered by open source or creative commons licenses — i.e., with policies and procedures which ensure use only in appropriate manners and cases.  This includes determining if a project where generative AI would be used is something whose results would need to be protected and, if so, determining whether tools are available for that protection other than copyright.
     
    It also includes avoiding high risk uses, such as using generative AI to attempt to replicate the work of a particular artist whose materials were used as training data. However, with intentionality and forethought, the risks associated with generative AI can be managed, and this new technology can bring tremendous benefits to those who deploy it intelligently.“
     
    Later, we will address two other types of Intellectual Property, Patents and Trademarks.  Both have a lengthy pedigree as well that must be considered in our new AI era.
     

    Data Privacy

    Data privacy and security are major issues organizations must deal with, and the regulatory burden is onerous.  Most readers have heard of HIPPA; the need to keep individual medical records confidential.  HIPPA is symptomatic of the need to treat ALL data in secure and private.

    From the GDPR, “The General Data Protection Regulation (GDPR) is the toughest privacy and security law in the world.  Though it was drafted and passed by the European Union (EU), it imposes obligations onto organizations anywhere, so long as they target or collect data related to people in the EU.  The regulation was put into effect on May 25, 2018.   The GDPR will levy harsh fines against those who violate its privacy and security standards, with penalties reaching into the tens of millions of euros.”

    The EU regulations are viewed as the ‘gold standard’ and others worldwide are in the process of emulating them.  Increased date management regulations are a given, as is their impact on AI learning.

    IP Guardrails

    Individuals and organizations jealously guard their intellectual properties, as they should.  Just think of the significant value Disney has built over 100 years from a cartoon mouse.

    Some may see AI as an assault on the organization’s core and take legal action they believe appropriate.  Others will try to capitalize on loopholes.  This is not different behavior from the IP current practice.

    AI advocates will find themselves in the midst of what could be a significant number of legal challenges as the technology and its regulation matures.  The current long-standing legal battles over social media platforms is but one example of this process.

    IP Ownership of AI Generated Content: The Movie

    Summary of the Video

    Briefly, in the video dated January 7, 2024, the attorney makes the following key points:

    • Copyright extends only to humans and AI content generated by products such as ChatGPT do not meet the ‘human’ authorship test.  However, if a human is actively engaged in the development of (and change) said content, things get less clear.
    •  Regarding AI generated inventions, Patent law becomes more relevant.  The speaker argues that ‘at least today’ patent laws mirror copyright because human creativity is key.
    • As far as AI generated Trademarks are concerned, these products such as logos, tag lines, etc. do not enjoy original authorship protection, but their ‘first use’ has precedence.  For more information he references the U.S. Patent and Trademark Office (USPTO).
    • Finally, he states that this area of the law is unfolding, and change is likely.

    These points were transcribed by this pundit.  As such, they are only his perception and must be viewed skeptically when addressing a specific ‘real’ question regarding this subject matter.  The attorney’s fifth bullet is probably the most important one.

    Final Thoughts

    Intellectual Property ownership is an area that technologists and software developers are generally not involved with.  Additionally, many have historically treated the content found online as if it is in the public domain.  We now know that authorship should be attributed.

    For most of the things individuals and organizations do with online content this is not an issue.  Blogs, political opinion and technology critique among others come to mind.

    However, AI has the potential to change fortunes (wealth, reputation and other) of individuals and organizations.  Finally, the regulatory environment is evolving, and dramatic changes are most likely forthcoming.

    Individual creators, management and others have a responsibility to assure AI developed content meets, and not just the regulations (in each jurisdiction the firm operates in).  Moreover, governance enforcement models must add AI technologies and assure that others are not infringing on the firm’s IP with potential risks of capital and reputational loss.

    One Last Thing

    With the need to protect data as well as assure all key intellectual property is protected, will this negatively impact on the output of AI models?  What will be the basis of gen AI training if it cannot gain access to the universe of data they require?  And yes, I know we often sign away certain rights when we engage with some organizations, but we can ‘opt out’ of allowing access to our data.

    Another Blog for a later time but in the meantime, just a question.

    How is your organization addressing these and other Intellectual Property issues emerging from Gen AI and other content developers?

    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

    Ordering Information

    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 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 Years?  Insect 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

    Ordering Information

    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.

  • Birds of a Feather . . .

    Birds of a Feather . . .

    Eagles Soar, others flock.

    Post the US election, it seems that many on the losing side are circling the wagons and pointing to the ‘other guy’ to blame for a series of political sins.  Like fish in a school, the belief seems to be that the crowd provides an element of protection.  But is this belief borne out by observation?

    Experience suggests that the masses can be figuratively slaughtered while the lone leader prevails.

    Keep Doing What You’re Doing

    Paraphrasing the Brown/Einstein quote about insanity, ‘many are doubling down on past behaviors that have already cost success.’  Yet we humans keeping going back to the old playbook.  Partially, because we do not know any other options.  Shame on those without a well thought out strategy (with options) because as we know, ‘No plan survives initial contact.”  If your political party just lost a major nationwide election, why would the first post-election reaction be to do more of the same?  Not all are taking this path, but based on the public media it seems many are.

    We often refer to the concept of Groupthink, “A process through which the desire for consensus in groups can lead to poor decisions.  Rather than object to them and risk losing a sense of group solidarity, members may remain silent and lend their support,” when speaking about group dynamics.  Let me posit that this sociological model does not address the dynamics of the losing side in the recent Presidental election.

    The Abilene Paradox

    The “Abilene paradox refers to a situation wherein no member of a group decides to contest a decision taken by the group, believing it to be the consensus of everyone, when in reality, none of the group members agree with the decision.  However, none of them speak up for the fear of going against the wishes of others and end up regretting not speaking up in time.”

    To this pundit, the Abilene paradox more closely mirrors what may have been happening to the losing presidential candidate team than many other social and behavioral models.

    The following short video provides a good and concise presentation of this methodology and its origin.  Suggest readers take a few minutes to watch it.

    Early Signals from the Markets

    Note: This paragraph is the opinion of this writer and not the result of a formal data analysis or use of any methodology.  Also, it does make one wonder if the results of the US Presidental election were borne out exclusively for the reasons many pundits are putting currently putting forward.

    Thanksgiving is the informal kick off for the holidays or Christmas.  It seems that the atmosphere this year is more upbeat, even joyous than in the recent past.  For example, starting with the so-called Black Friday (the day after Thanksgiving), “E-commerce was the biggest winner over the weekend, showing the strongest growth year over year. U.S. online sales for the weekend were $41.1 billion, and online spending set new records on each of the five days, according to data from Adobe Analytics.”  Despite persistent inflation, these sales figures are extraordinarily strong.

    Moreover, advertisers seem more willing to use the phase, “Merry Christmas” more than in the recent past.

    Perhaps, the outcome of the election excited the population, but maybe there is an additional factor to be considered.

    Retail marketers must develop champaigns well in advance of the purchasing season.  Decisions regarding inventory volume and key ‘in’ styles and toys etc. must be made.  Moreover, festivities, parades and other market Pull Drivers as well Push (when appropriate) must be developed, funded and implemented.

    Bottom Line–these efforts should be seen as a major Leading Indicator.  This suggests that retailers and other consumer/hospitality sectors had supporting data many months ago, i.e., Big Data Analytics.

    Hypothesis, while very important, the personalities in the election may have played a lesser role than many believe.  The rising tide lifted the boat of the candidate(s) that could sense this underlying movement higher better than those that did not pick up on these vibrations.  This is an important leadership trait.

    This does not diminish the role of candidates and positions taken.  We simply make the case that there is a broader social and economic movement afoot.

    This writer only has access to public information and the opinions of others on this subject.  There may be other processes and behaviors taken by the presidential parties (not publicized) that can either add or detract from the arguments herein.  Additionally, some public behaviors such as campaign budgets and spending habits are known and likely contributed to the wining process as well as the losing operation.

    Final Thoughts

    In the coming years many books, research papers and other documents will be written about the 2024 US Presidental election.  Some will add real value to the discussion, yet sadly many will seek to justify positions taken.  Others will label scapegoats.

    Likely, history will show that this election is but a single yet major impact event of a very large social transformation whose final impact we cannot yet surmise. 

    To be successful in this new environment, individuals and the groups they represent only gain actionable and factual knowledge when strict and structured methodologies are use based on strong data foundations.  In this piece, the November 15, 2024, edition The Transformation of Our Spreadsheet Society and others (previously published and future editions), we attempt to participate in these early discussions.

    What have you learned from the outcomes of November 5, 2024?

    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.

  • The Transformation of Our Spreadsheet Society

    The Transformation of Our Spreadsheet Society

    “The only rules are the ones dictated by the laws of physics.  Everything else is a recommendation.”  — Walter Isaacson/Elon Musk

    We live in a spreadsheet society.  Columns of Categories of People and Rows of Wants, Needs, and Desires.  This model is too simplistic.  What is needed, and Big Data can provide, is a more sophisticated approach.

    This spreadsheet approach was shown in the recent US elections to be detrimental to the party mainly depending on this view of society.  How many times did we hear pollsters opine that X percent of a certain population was voting for one candidate vs. the other?  The categories of people were divided along traditional lines.  This whole model was shattered on November 2, 2024, and likely some providers of data in this format may no longer be in business for the next cycle.

    However, this belief system is not limited to the political class.  We all can fall into this stereotype.

    For decades we have been taught that data categories can be captured under a Normal Distribution (Bell) Curve of a category and row of interest, i.e., the distribution of the height of a class of male senior high school students or SAT scores.  Another more relevant example, retailers’ pertinacious obsession with the 18–34-year-old group.

    These are fairly simple models, and in this Blogger’s opinion, this representation rarely works anymore, if it ever did.  For example, the resulting retail sector inventory overages as a result of dependencies on this gross data model are not an effective return on shareholder value.  Other recent missteps based on faulty interpretation of the customer/prospect base include the Bud Lite advertising fiasco and the Target marketing failure.

    It is ok to make marketing mistakes, that is going to happen.  The problem with these two (and other) campaigns is the analysis of risk, return, etc. was likely shallow or mathematically primitive.

    There are ways to appeal to new consumers without alienating a large existing base.  It’s all in the big numbers.

    There are several validated models of human behavior and we will discuss two of them herein, Maslow’s Hierarchy and the Relationships, Behaviors, Conditions model.  Some readers may prefer others, and they will most likely work within this construct as well.

    Maslow’s Hierarchy of Needs

    This perspective on human needs and subsequent behaviors dates back to the 1940s.  As shown, it consists of five steps from survival to the ultimate Self Actualization.  Note that we adapt this model in two ways.  First, we view this as a growth process as opposed to five discrete steps.  Additionally, the bottom two lower ranges focus mostly on the physical issues we all face.  Fundamental survival and security both physically, mentally, emotionally and spiritually.  Once we have attained, sustained, and believe, we are ready to transition towards an end game, “the realization or fulfillment of one’s talents and potentialities, especially considered as a drive or need present in everyone.”

    Next, we will discuss how we can use this and the RBC solutions to realize specific and measurable value that changes this dynamic.

    The color gradient is meant to reflect that this journey is a process and often each field begins slowly before accelerating into the next range.

    Another perspective of each the Five Platforms consists of a number of smaller steps, which when assessed using Integral Calculus, generates a continuum.

    Relationships, Behaviors, and Conditions (RBC)

    The following is taken from our Cross-Cultural Online Game site:

    The RELATIONSHIPS, BEHAVIORS, and CONDITIONS (RBC) model was originally developed to address issues around cross cultural (international) negotiation processes.   As shown in the figure, Relationships are the focal point of this perspective, reflecting commonality of interest, balance of power and trust as well as intensity of expressed conflict.  Behaviors in this model is defined as a broad term including multi-dimensions and intentional as well as unintentional.  Finally, Conditions are defined as active and including circumstances, capabilities and skills of the parties, culture, and the environment.  Of course, Time is a variable in this model as well.

    Moreover, we have defined Behavioral Economics as “the decision-making model that incorporates societal, cultural, emotions and other human biases into the process as opposed to the classic rational economic actor.

    One key feature of the R B C Framework is its emphasis on interactive relationships while providing an environment for multiple levels of behavioral analysis.   This makes it a useful tool to better understand the new Big Data/AI processes currently unfolding.

    The following graphic is a derivative of our Cross-Cultural Interactions model.  It is a peer reviewed model and is a very good way to calibrate interactions.  Additional information is available on the above link.

    This author has long believed that we do not live in a linear or mathematically deterministic world.  A strong belief in stochastic, matrices drive much of my thinking.  This is reflected in the figure on the left.  The RBC model is the foundation for the five parties and their collective Behaviors.  The resulting Relationships range from one-on-one to small groups or in some cases a wide and varied constituency.

    Note that there is an Ecosystem, (something, such as a network of businesses, considered to resemble an ecological ecosystem especially because of its complex interdependent parts) associated with each entity other that the individuals’ who are the other four.

    This is a wide array of influences on any given individual.  Not easily measured, linearly!

    Scientific Method

    Most readers are familiar with how science has been brought into bolster the position of pundits/advocates of policy, especially related to Covid-19.  The word is tossed around casually, as if most who use it know what they are talking about.  Spoiler Alert–Most Do Not! This includes some with advanced technical or medical bona fides.

    Most think that by using the word ‘science’ this assessment process is out of their wheelhouse.  Previously, we argued that there is a layperson’s approach that works fine for most of our daily needs.  Details can be found on our Blog, They Blinded Me with Science.

    For space reasons, this (guidelines) model will not be repeated here but check it out, it is a short read.

    The late Nobel Laureate, Richard Feynman has a brief and layperson-oriented presentation on the Scientific Method.  He is an excellent teacher, and this clip is informative as well as entertaining.

     “If it disagrees with experiment, its wrong”—Richard Feynman

    Human Input Still Needed

    To be clear, pollsters and marketers will still need to ask questions that will also help structure the model, but the processes posited herein can change the weighting processes driving toward equilibrium and Pareto Optimality (Pareto efficiency implies that resources are allocated in the most economically efficient manner but does not imply equality or fairness) in the final analysis.  In other words, higher quality results.

    These numbers can also be seen as ‘first value’ in a simulation.  Another way to look at this is to the logic the Turing (Bombe) Machine of World War II.  Not setting a number as itself.

    Then AI can take the model to the next level and provide pollsters/marketers with real, modern solutions.  Finally, other uses will most likely be derivatives of this solution.

    The Data Management Problem

    We have identified a general problem as well as three valid and reliable theories.  This is only a nice discussion without relevance with Valid, Reliable, and Timely (VRT) data.  Data Management has been a problem as long as there has been data, stone, paper or electronic.  It has always been an issue.  “Herman Hollerith is given credit for adapting the punch cards used for weaving looms to act as the memory for a mechanical tabulating machine, in 1890.”  Much later (circa 1950s) digital database management schemas emerged.  Today, we are flooded by data of all types including telemetry and deliberately false data/information.

    How can this be effectively managed and how can an executive without a technology background survive much less thrive in such an environment?

    For decades, this author has been involved in almost all computer system development from the yellow punch tape of the 1960s until today.  There have been several constants over that period.

    One of the biggest chronic challenges has been database management; from the acquisition of data through its life cycle until achieve.  An outcome of poor data management has been decisions that have even led to the demise of firms, along with tens of thousands (if not more) of suboptimal decisions at the expense of shareholder value (bottom line/stock price).  What makes the current crop of Big Data/Artificial Intelligence advocates any smarter than those who came before?  Nothing!  Unless some things are changed.

    Our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making 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).  The following and other managerial action items are developed in detail.

    • How to determine the quality of the data and its relevance to the decision-making processes.
    • Current Challenges and Trends in Big Data and associated applications.
    • Proposed organization structure such as High Reliability Organization and an understanding of Human Factors to fully realize the full and measurable economic value from these technologies.
    • A full set of Risk Mitigation and a Governance model including Disaster Recovery and Cyber Security.
    • How these technologies are used in Operations, a proposed Management System as well as numerous Case Studies across a number of industries and types of problems.

    The challenge of managing this suite of emerging AI/Big Data is daunting and one that cannot be dodged or delegated.  How organizations respond can be the difference between success or the destruction of shareholder value.

    It’s The Data Stupid

    Our pollsters are collecting and analyzing data that are self-reported.

    • A questionnaire is developed which may or may not reflect bias.
    • These questions are posed to potential respondents (phone and otherwise) who may detect a voice tone, and/or the subject may intentionally lie or mislead.
    • Finally, who answers the phone these days?  This skews the data sample and perhaps badly.

    Data collected in this manner is not subject to rigor and most likely wrong or skewed.  Finally, data collected in this manner is not suitable for the new Big Data Analytic models.

    One Proposed Better Way

    There are probably several much better ways to address political and marketing problems.  While no data source is perfect, we posit the following way to use the US Census data.  We can treat it as a function of columns and rows yet apply sophistical data analysis algorithms.

    Categories

    As mentioned, we tend to clump or stereotype individuals into preconceived ‘buckets.’  Over time, these buckets have taken on an aura of, it’s the only way.  Basically, the construct that ‘we have always done it this way.’
     
    This is no longer a viable business or social model.  Our world is much too dynamic for the older static approach to targeting the likelihood of a specific demographic to perform in a preconceived prescriptive manner.
     
    One place to start looking is at the United States Census data.  This data set consists of 57 profiles, The United States and each State and Territory.  Each Profile is divided into several Sub-Categories, Populations and People, Income and Poverty, Education, Employment, Housing, Health, Business and Economy, Race and Ethnicity, and Nearby States.  Each Sub-Category is further detailed.
     
    We might even call the data in these Categories/Sub-Categories, Conditions from the RBC model.  Each Platform in Maslow’s Hierarchy can be considered a Category with infinite Sub-Categories.  Likewise, Conditions.

    Rows

    We have identified the following three variable model as representative of human Behaviors–Wants, Needs, and Desires.  We have previously reviewed some of this in our Blog, Want – Like – Need  in 2019.  These can also be mapped to Behaviors in both the RBC and Maslow models.
     
    Details and a short list of some variables follow.  These definitions can overlap, and readers will note that there is some duplication across all three classes below.  Researchers use different definitions for each class.  This does not detract from the fundamentals of Rows selected for analysis.  
    The point is to develop a list of behaviors that is indicative of the problem to be solved.

    Wants

    For purposes of this model, we define Want as something that an individual might seek as part of normal life, i.e., and ice cream cone.

    Needs

    Those fundamentals of life, especially as defined in Maslow’s Hierarchy, platforms one and two.

    Desires

    Different from Wants, Desires are perhaps beyond his/her reach.  Coveting a promotion and willing to back stab co-workers to get it rather than compete on merit.

    Sources of Wants, Needs, and Desires

    We have suggested that a starting point for Categories is the very large US Census database.  No such singular source exists for these behaviors and there is an overlap in definitions.  This list gives readers a starting point.  In no particular order, this non-comprehensive includes:

    The list goes on, but readers get the point.  A large row of behaviors will help develop a robust model.

    And The Answer Is

    While we know that the solution to the political pollster and/or marketing manager is not a definitive answer, we can do better than we are.  We know how to management data in this environment and we have models for assessing and making decisions based on results.  As we move from simple, small data set, linear models to robust Big Data Analysis, we need to consider a few additional action items.

    Scientific Method

    Do not forget to use this methodology to define and refine your problem statement.

    Model Limits

    • While we are using a significant number of independent and dependent variables, we are not trying to solve world hunger.  Therefore, we need to put limits on (Bound) the model.  This is an age-old problem we first addressed in 2015, Bounding the Boundless.
    • From a scientific perspective, “Across all science, modelling is our most powerful tool, as models let us focus on the few details that matter most, leaving many others aside.  Models also help reveal the typically far-from-intuitive consequences when multiple causal factors act in combination.”
    • Additionally, “Getting AI/ML/DL systems to work has been one of the biggest leaps in technology in recent years, but understanding how to control and optimize them as they adapt isn’t nearly as far along.  These systems are generally opaque if a problem develops in the field.  There is little or no visibility into how algorithms are utilized, or how weights that determine their behavior will change with a particular use case or interactions with other technology.”
    • Moreover, “the European Union this week (2021) issued guidelines for AI — specifically including ML and automated decision-making systems — limiting the ability of these systems to act autonomously, requiring ‘secure and reliable systems software,’ and requiring mechanisms for ensuring responsibility and accountability for AI systems and their outcomes.”

    Diminishing Returns

    Since we are not boiling the ocean, at some point continuing with the model will result reduced performance.  According to Economists, “The law of diminishing returns says that, if you keep increasing one factor in the production of goods (such as your workforce) while keeping all other factors the same, you’ll reach a point beyond which additional increases will result in a progressive decline in output.  In other words, there’s a point when adding more inputs will begin to hamper the production process.”

    “Data is just a way of codifying information. Any data gathered should be relevant to a problem, otherwise useless data clouds the results of a query.  If there are too many degrees of freedom, you are begging for a spurious correlation.”

    Readers may be familiar with, “The Pareto Principle, also known as the 80-20 rule, is a concept that many have adopted for their life and time management.  It is the idea that 20% of the effort, or input, leads to 80% of the results or output.  The point of this principle is to recognize that most things in life are not distributed evenly.”  This may be a satisfactory approach to this application.
     

    Need for a Data Scientist

    This approach may require the use of a professional data scientist to realize a valid and reliable outcome.  “A data scientist is an analytics professional who is responsible for collecting, analyzing and interpreting data to help drive decision-making in an organization.  The data scientist role combines elements of several traditional and technical jobs, including mathematician, scientist, statistician and computer programmer.  It involves the use of advanced analytics techniques, such as machine learning and predictive modeling, along with the application of scientific principles.  As part of data science initiatives, data scientists often must work with large amounts of data to develop and test hypotheses, make inferences and analyze things such as customer and market trends, financial risks, cybersecurity threats, stock trades, equipment maintenance needs and medical conditions.”

    More

    This is not a definitive list and is provided to give readers an understanding of what it will take to move forward with the Big Data Analysis model.  Appropriate research and problem definition may reveal additional or fewer requirements.

    Demise of Linear

    The Linear broadcast approach to selling or changing minds is not the relevant delivery vehicle for new micro-data analysis.  Directed notifications is better although practice this with care.  This last election cycle, I received a text, words to the effect, “can we count of your vote for X?”  I was very much against X and no reason was offered to help me change my mind.  Get with the program and don’t be so lazy developing your spiel or message.

    Elon Musk’s ‘Algorithm’

    This is an interesting approach to problem solving that can have relevance to the issue discussed herein.  Can we reduce complexity without losing data fidelity, “The accuracy, completeness, consistency, and timeliness of data.  In other words, it’s the degree to which data can be trusted to be accurate and reliable.”

    His Five Step Process:

    1. Question Every Requirement

    2. Delete Any Part or Process You Can

    3. Simplify and Optimize

    4. Accelerate Cycle Time

    5. Automate

    Readers may ask, how does this fit in this discussion?  We bring this to your attention because it may help identify and bound the problem to be solved.

    Also, perhaps of some value is his, “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.”  A survey, analysis, etc. are all products and may benefit from this index model.

    Final Thoughts

    Most financial professionals will tell you that spreadsheets must foot (the sum of all rows must equal the sum of all columns).  Can societies or multiple societies foot their columns and rows?  Most likely not and if that is the case, data from this model is not valid or reliable.

    Most likely, this type of data will take the form of a Scatter Diagram (without correlation?) with some clumps or areas of intensity of a specific category or group of categories.

    This may not be an approach that many will take; however, it is clear that the original premise of this piece, that we live in a spreadsheet society is no longer appropriate.  “If you always do what you always did, you will always get what you always got.” ― Albert Einstein.  It will be interesting to see how future polling is conducted.

    Non-Linear Speed Ahead

    Sometimes pieces like this summarize a conclusion.  In the high-pressure environment, we are not concluding anything.  We are carving a way forward–A Growth Model of the Data Economy.

    As of this writing the incoming US administration appears to be moving at hyper speed across a broad front.  Moreover, AI in particular exploding.  Those interested in keeping up may want to to Subscribe | Generative’s AI Newsletter (not an endorsement but seems be a good daily source of information).  Mostly, just keeping up will not be enough, if top quartile success is the goal.

    It will be interesting to see the role the family of Artificial Intelligence (AI) software solutions play in this field going forward.

    Micro-targeting is certainly a place for Big Data to shine.  That said the problem to be solved and the confidence in the validity and reliability of the data must ascertained. 

    Society faces some real challenges with how we manage, analyze and decide using data.  This is but one example where old methods no longer produce valid and reliable results.  How will you and your organization go 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 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 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.

    Copyright © 2024 The Rapid Response Institute LLC.  All rights reserved.

  • 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.

  • 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.

  • All Is Not Quiet

    All Is Not Quiet

    Organizational Conflict may not be visible.  Passive Aggressive executives may not exhibit the classic signs of stress.

    The stresses of everyday business are well understood by those in that mix.  Each individual has an agenda based on his/her personal desires as well as organizational job description and target (goal) requirements.

    By definition, this puts all in an organization conflict situation.  Moreover, this is not necessarily a negative environment.  Stress between individuals and division can lead to synergies beyond the immediate.

    This so-called Tension at the Margin concept is taken from the physical construct Surface Tension, a relationship between two different substances such as water and air.  In other words, there is always a bit of tension or stress between two or more different entities–living or inanimate. 

    The problem manifests itself when conflict becomes counter productive.  Political agendas overtake the goals of the organization and individuals see themselves as superior to the organizations of which they are employed.  We first addressed this issue in our 1994 peer reviewed article, Organizational Conflict and Dispute Resolution.

    Managed stress can add significant value; we see this in competitive sports everyday.  Unmanaged stress can lead to a cardiac event both personally and organizationally.

    How is your organization managing its Tension at the Margin?

    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.

  • Boo

    Boo

    According to one source, “The (Halloween) tradition originated with the ancient Celtic festival of Samhain, when people would light bonfires and wear costumes to ward off ghosts.”

     

    Is your organization dressing up to fight for an old dead culture?

    The Answer is NO, Even if it Kills Me!!

    Decades an organization I know well acquired a direct (high tech) competitor for one of its divisions.  I believe the idea was to gain market share, become more competitive and so forth and so.  All the ‘good’ reasons mergers and acquisitions are viewed as adding value.

    For several years both sides visibly fought the merger.  In the end, the new unit failed and was sold.  ALL lost their jobs!  Yet, I guess they won.

    Cultural Change Ain’t That Hard

    What were they thinking as those lemmings commented career suicide?  Contemporary, Elon Musk is insisting that employees report to the office or face termination and I guess many are resisting.  With electric car sales in the tank and social media struggling as well.  Is this the new generation of lemmings?

    Social media in particular will face consolidation over the next few years.  This process is consistent with what other sectors have done as they mature.  Streaming video is another sector faced with low returns and too many vendors.

    Ghosts from the past have the wisdom.  “Don’t do what I did,” is something we may hear a lot of soon.

    The Only Constant is Change

    Calcifying yourself like a mummy is a career/organization killer.  So why do it?  Embrace the new, after all that’s what most techies are telling all of us.  I fear; however, not all are ‘Walking the Walk.”  Thousands of years ago the Roman taught us, “Caveat Emptor” or buyer beware.  This wisdom still applies.

    Change at a rate that works for you and your organization.  You may find that you like the new culture and say boo to the old.

    What are you and your organization doing to keep the old demons at bay?

    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.

  • 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.

  • Tomorrow’s Culture–Today!

    Tomorrow’s Culture–Today!

    When asked when something is needed, how many of us have heard or even said, “I need it yesterday?”

    Our world is turning  faster all the time.  The now quaint old phrase, “Internet is like dog years.  One human year is equal to seven Internet years” now seems like slow motion.  Change is all around us and always has been.  Those of us using the Internet in the early 1990s or earlier could not have envisioned today’s mobile devices much less Artificial Intelligence (AI) and who knows what the next ten years will bring.

    Previously, we have addressed Organizational Initiatives and why almost all of them Fail.  Interested readers should check that post out.  This blog addresses ways to move forward desired significant changes such as Cultural Transformation.

    Leadership?

    There are a number of euphemisms for leadership or lack thereof.

    • Talk the Talk, not Walk the Walk 
    • Do as I say, not as I do
    • Rules for me, but not for thee

    These are a few that come to mind and I am sure there are many others.  Humans are very good at determining duplicity, even seeing it as dishonesty.

    Even if it is not unethical, illegal or immoral–if looks could kill comes to mind.  Where it is a politician leaving for a vacation in Mexico during one of the worst floods in US history in his state or an airline CEO flying on a private jet in the midst of major air travel snafu during a holiday season, visuals matter.

    ‘Follow Me‘ is the mantra of the US Army Infantry.  True Leaders, Lead!

    There is no such thing as leading from behind or telling people that you will be right behind them.  What organizational hill would you die on for this non-leader?

    Bottom Line

    It is easier to accelerate change or transformation than commonly believed.  Visible, consistent and constant leadership is the hallmark of success.  Also, answering the “What’s in it for me” question all will have with a meaningful response is key.

    For cultural transformation, the CEO is the agent of change.  He/She cannot delegate this to an Executive Sponsor and move on to other initiatives that will most likely fail too.

    What is Your Leadership Style and Why Would Anyone Follow You?

    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.

  • 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.

  • The Thirteen and The One

    The Thirteen and The One

    As of this writing, the situation in Ukraine is fluid at best.  Many see the Ukrainian people as heroes winning against all odds.  Other pundits predict they will be overwhelmed in the near future.  History suggests the later is a premature prognosis.

    In the 1940’s European resistance played a major role in the defeat of the Nazi Germany during World War II.  Later, the Vietnamese were able to overcome both France and the United States.  Afghanistan routed the Soviet Union and the United States.  However, the ultimate (modern era) David vs Goliath model lies elsewhere.

    During the 1770s Great Britain was the most powerful nation in the western world.  A rag tag band of farmers, frontiersmen,  city dwellers and other colonists inhabited a land far from the European continent.  One could argue, who even cared about that bunch?  Yet it was a vassal of European global expansion with perceived riches.

    Then the most powerful country in the world militarily acted, albeit assuming this crowd as weak and taken for granted.  The end result is the United States of America.

    Theoretically easily squashed, yet supported by France and Germany, the ‘shot heard around the world’ transformed the human trajectory significantly and forever.  Europe (including the UK) has been paid back a hundred fold for that investment for over 200 years.  Many others have also fought and attained sustained freedom.

    Do not underestimate the Will (power) of the One.  No one can argue that the Thirteen dramatically impacted the last two plus centuries.  Perhaps the One will change the next few generations.  As before, we may be witnessing the end of a centuries old power structure.

    Will the current investment in Ukraine will return similar dividends?  Odds are, yes.  Even when one does not prevail, i.e., Spartacus and the 300 at Thermopylae the world changed for the better because of their commitments.

    Not limited to conflict, other examples of the small taking on the giant include Microsoft v IBM.  This is a common to the universal human condition with a long track record of success with some failure.  Ukraine has shown themselves to the the Home of the Brave.  Hopefully, soon they will also the Land of the Free.

    Many of us in the global community are heirs of the Thirteen.  What are we doing for the 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.

  • THE SCIENCE: The Reason We Need STEM

    THE SCIENCE: The Reason We Need STEM

    Almost every day, we hear that “The Science” says . . .  We are told Covid-19 and Climate Change are based on The Science and as such we must accept that expert analyses as ‘settled.’  Then something changes and once more the science police demand we accept their new interpretation.

    The near-term result: confusion and lack of trust, even acrimony.  The Science, as presented by the media, politicians and others is a static solution.  As we follow The Science, we are told we must adjust but not necessarily why.

    There is no reason to trust to fate or our political betters (call themselves elites).  The Science is not that mysterious.  The term is meant to deride most of us, including degreed scientists like this author.  Might want to ask those pontificating to define the ‘Scientific Method.’

    Set at the beginning of the 20th Century Space Race, the movie, Hidden Figures brought broad attention to the mathematical genius of a group of then unknown women.  They were instrumental helping the fledgling NASA achieve the early goals of manned space flight, including the lunar landings.  They understood The Science better than others.

    On the Shoulders of Giants

    With the social deck stacked against them, these women rose above the norms of the time and accomplished feats unknown and certainly unexpected by contemporaries.  Perhaps more importantly, they demonstrated that math and science is not reserved for elites.  They educated all of us.

    We live in a technological age and told shortly everything will be ‘Smart.’  The workforce will change, and our view of the world will be dramatically different.  Moreover, many of us will no longer be relevant or even employable.  Balderdash!

    Science, Technology, Engineering, and Math (STEM)

    STEM is the anacronym for the set of technical knowledge embodied in these ‘hard’ disciplines.  Collectively, they form the backbone of our 21st Century economy and social advancement.  While liberal arts disciplines are important, STEM knowledge is critical if we are to hold the ‘experts’ accountable.

    Increasingly, ‘soft’ or social skills are also seen as important.  The old concept of the ‘Nerd’ is giving way to the technologist with human empathy.

    The emerging generation(s) will need STEM expertise as well as soft skills.  In some ways this is no different than previous times when the Titans of Industry changed their world.  Building on new technologies, they built business.  A successful business requires a knowledgeable workforce that can monetize technology.

    The titans this time are everyday men and women, even juveniles.  Knowledge of STEM subjects is dictating individual success or failure.  Get on the STEM train.

    Role of R B C

    We have routinely commented on the Relationships, Behaviors, Conditions model first put forth in the 1990s.  From a previous blog, “One of the basic tenets of the RBC Framework is the general construct that Relationships cannot be determined a priori.  The well-used example is a man and a woman sitting on a bench at a bus stop.  Are they married, siblings, coworkers, friends or simply two people waiting to catch the same/different bus?

    Their relationship cannot be known directly.  However, their Behaviors will provide insight into how they relate to each other.  Romantic behavior may indicate marriage, dating, an affair etc. They may still be coworkers but most likely are not strangers.

    The third dimension, Conditions (environment) can be considered the stage upon which behaviors play.”

    One can make the case that STEM is a condition or situation.  In other words, our technology environment.  The behavior of individuals with these skill sets will determine the relationship these individuals have with their peers, customers/business ecosystem and economy/society in general.

    Finally

    We spend a lot of time, quoting “The Science.”  Most vocalizing the term are not scientists or even qualified to understand its basic tenets.  But taken as gospel because of some perceived authority, i.e., politicians, newscasters, celebrities and bureaucrats among others.

    This scientist suggests that STEM is necessary to assure the emerging generations understand “The Science” and how it can actually be used to benefit mankind.  And, oh yea and make a buck!

    Where does STEM fit in Your Organization’s Strategy?

    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.

  • The Secret of the Pencil

    The Secret of the Pencil

    The writing instrument, the pencil is purported to have been invented in 1795.  It has been around for a while and continues to serve a useful purpose.

    In the following video, the late economist Milton Friedman describes the process for manufacturing this simple longstanding tool.  The point he makes is that regardless of the simplicity and maturity of a product, it requires a robust supply chain from raw material through the distribution of the finished product.

    He makes the case that no single organization can make this simple tool without help from many economic actors and the thousands of organizations employed either as employees or part of individual supply chains.  This is a powerful argument for free market behaviors.  Well worth a little over 2 minutes of your time to view.

    As of this writing, there is probably more discussion about the global supply chain than this writer can remember.  The last time we saw such exposure was after the 2011 Tōhoku earthquake and tsunami, offshore Japan.  However, it was specific to goods and services provided from Japan.  This time it actually is different.  The current shipping disruption is purported to impact on the US holiday gift giving season.  The resulting impact on firms of all sizes may be dramatic and even impact on all levels of politics.

    States like Florida and Georgia and others are arguing that Asian shippers gain value by landing at their ports versus the closer ones on the West Coast of the United States.  If the economics bear this model out, significant long-term changes may be made.

    Pundits, including this one like to talk about Creative Destruction and the systemic changes that can come about as the result of an event.  While the pandemic may be the causal incident, the global supply chain will likely be the lasting impactful change in global commerce.

    As with the simple, mature product the pencil, every firm’s lifeblood is its supply chain.  How it works through this transformational period may help declare the winners and losers going forward.

    In our forthcoming book, we address the emerging Smart Manufacturing model and the role of the supply chain in the future.  Expect this component to become even more important.  Disruptions like the current one will ruin more than just the ability to manufacture automobiles.  Those with weak SC strategies will most likely fail.

    What is Your Firm Doing to Develop the Robust Supply Chain of the Future.

    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.

    Interested in Cross Cultural Engagement or DEI, 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.

    Contact the author for information on these and others subjects covered in the Critical Mass series.

  • Crisis Management: The Need for Internal Consistency

    Crisis Management: The Need for Internal Consistency

    Attributed to former US Senator and Governor Rhode Island, Lincoln Chafee, “Trust is built with consistency.”  Moreover, from statistics we know that Internal Consistency, “measures whether several items that propose to measure the same general construct produce similar scores.”  The follow on definition statistical reliability, “is the consistency of a set of measurements or measuring instrument, often used to describe a test.”

    In our July 20, 2021 post, Are Your DEI Wheels Spinning? we posited that positive behavioral change as a result of a new situation/condition must result in relationships built on trust.  Without said trust, positive behavioral change is unlikely.

    Situational Change and Differences of Opinion

    Responsible individuals, organizations, and even industrial sectors can disagree.  In fact, ‘academic argument’ is a key component of the Scientific Method and science is never settled.  Moreover, most situations are fluid and those in crisis tend to be agitated.

    That said, crisis management techniques demand well defined processes with identified owners.  Moreover, data must be shared and meet the dual tests of ‘valid and reliable.’  There is no room for sloppiness or data bias as was found in more than one occasion during the Covid-19 pandemic.

    Some argue that Covid-19 data issues are unique and due the global nature of the problem.  However, we are told that Big Data is the future or actually is now.  Solving Climate Change, enabling driverless electric vehicles and so on and so forth.  Based on current performance, it would appear we have a ways to go.  Despite statements to the contrary it is possible implement decision support systems quickly and with success.  This is actually not a new process.

    Street Cred

    Often viewed from the perspective of the colloquial.  One attains credibility based on perceived performance and not necessarily as a function of actual accomplishment.  Usually, highly visible this Influencer can hold sway in larger ways than are actually justified.  However, in their orbit these individuals hold the trust of their followers.  Those holding contrary views will lack trust from this group but may hold significant trust from others skeptical of said leader.

    Both sides can loose trust and cred if ‘holes’ appear in the story line, narrative or agenda.  If the internal consistency of each position is weak, internal group pressures may ultimately destroy any impression of belief and trust.

    This is somewhat where the world is with the established Public Health authorities.  Many hold the perception of perhaps actual misinterpretation, analysis and presentation of the Covid-19 data sets.  The counter position lacks credibility as well.

    R B C

    We have been a proponent of the Relationships, Behaviors, Conditions model for almost thirty years.  Simply put, when situations or conditions change, human behavior changes and vis-à-vis.  This directly impacts on the relationships between individuals or groups, even societies.

    Large, controversial conditional movements, often with poor and even incompetent supporting data can lead to the erosion and even the complete breakdown of trust among affected parties.  Emotional, hyperbole, draconian and biased positions can accelerate the breakdown of trust.

    Once this bond is broken, rebuilding trust is a very lengthy process.  Rebuilding trust is an act of leadership!

    What is your organization doing to keep trust intact?

    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.

  • Complicity or Write a Book?

    Complicity or Write a Book?

    I Need a Book Deal!

     

    With the change of the US federal administration, previous key individuals are now coming out and writing books regarding their former boss.  This all the while with plenty of video evidence where these individuals pontificated a position and even changed their position dramatically while in the employ and in seemingly in support of that administration’s policy.

    Now some of the very architects of the US response to the Coronavirus are claiming their innocence all the while blaming others for thousands of deaths.  The nerve.  If true, she is equally responsible and perhaps more since she is a medical doctor.  First do no harm.

    We all have a boss and most need a job; however, when does an individual’s moral compass come to play?  Senior officials who will be gainfully employed doing something else fail to come forward or even resign.  THEN they claim victimhood!  The LOVE of power is so intoxicating.

    Remember, ordinary Germans were widely condemned after World War II for much less personal involvement.

    Credibility?

    Many institutions lack any credulity today.  This is not news and is a widely held view.  Any wonder when so called responsible parties now claim they could have reduced deaths but failed to do so?

    Organizational maleficence often leads to criminal charges and many executives have gone to jail.  If many of the books written after every administration are true, should at least some authors be at least censured for the complicity they themselves are documenting?

    ESG

    We have addressed the issue of governance a number of times.  Most notably in 2011, as part of our Changing the Dialogue monographs, Asset/Equipment Integrity Governance: Operations–Enterprise Alignment (A Case for Board Oversight) addressed the role of operations including environmental and social issues as critical components of the role of organizations.

    As part of the Safety and Environmental Management System tenets, the right for individuals to express themselves without redress is sacrosanct.  Surely, this includes senior officials?  If they can’t or rather seek to write ‘tell all’ books later, governance models are at risk.

    The days of Yes Men (and Women) and Empty Suits are over.  Perhaps, organizations need to clean house.

    How Do You Know Y0ur Advisors are Being Honest with You?

    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.

  • Post Covid-19 Operational Performance

    Post Covid-19 Operational Performance

    Not the So-Called New Normal

     

    The light at the end of the Covid-19 tunnel may not be the train many still believe.  Populations are being inoculated at very high rates.  Moreover, there is ample evidence in my metropolitan area that the general population no longer believes or adheres to the ‘advice of experts.’  This should surprise no one who understands the US long history of civil disobedience.

    We pundits forecasting the new normal following a traumatic social event always get it wrong and so we will again this time.  There is a simple reason for this–Human Behavioral Economics.  Another leg of the three legged stool is the Technology Readiness Level (TRL) and not all technologies are at the same level or even play well together.  Finally, Organizational Culture must be ready as well.  If these situational settings are not met, the crisis passes and we get back into the comfortable and familiar.

    Following the initial euphoria that we could work from home and not wear pants, many discovered this really was not for them.  Many children did not do as well in a stay at home educational setting and teachers were challenged as well.  Moreover, many tasks require personal engagement.

    Many are Called . . .

    As always winners and losers will emerge and it will take some time for that rank order to solidify.  While digital is important and we have supported that business model for decades, bits will not physically move the barrels.  Still will take heavy industrial technology and processes.

    Using information and other technologies to drive Operations Management Systems are the future.  Not necessarily driven by IT firms but those digital engineers steeped in both disciplines.

    If Organizations are to achieve successful Sustainability, they first need a High Reliability level of Agility and Resiliency.  The only get these attributes when they perform at a high level of Excellence.

    So as we arrive at another new normal, we need to recognize that not everything from the past was bad and not everything we see today is good.  Some processes will be sustained and coupled with newer one.  New Normals do not really destroy the past; we continue to evolve.

    Even innovation from Creative Destruction is not instantaneous.

    How will your organization take advantage of emerging opportunities?

    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.

  • Open Sesame

    Open Sesame

    A Year of Leadership–Or Not!

    On March 2, 2021 the Governor of Texas announced its 100% reopening–effectively proclaiming an end of the Covid-19 crisis.  Needless to say in our hyper-partisan world, many widely decried the decision and even accused him or bringing physical death to the state population.

    Mississippi announced a similar rollback of virus driven constraints.  Likewise, Connecticut is rapidly easing similar restrictions.  These state join others with loose Covid-19 protocols.  This pundit expects this trend to gain speed quickly and worldwide.

    Meanwhile, the President of the United States accuses these decisions as being made by Neanderthals, while the Director of NIAID position has move from NO mask to wearing MUTIPLE masks.  The political divide regarding the path forward remains wide.

    Consent of the Governed

    “You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time,” is attributed to Abraham Lincoln.  This oft quote is usually seen through a political lens.  More importantly, it is a position from a Leader!

    Driven by suspect data we were told that this virus had an Armageddon like quality.  At one point over 2 million Americans were projected to die and the hospital systems would be overwhelmed, perhaps irrevocably.  Hospital ships were mobilized and economies brought to their knees all to save lives.  Perhaps, even our own.

    To be clear, many did succumb and many lives were destroyed or at least changed forever.  We mourn those and recognize the serious of this pathogen.

     

    A few of my family and friends have been infected but fortunately with only minor symptoms and limited hospitalization.  In this we are very fortunate.

    Crises can happen at any time, hurricane, winter storms, hostilities are part of the human conditions.  How we respond it the difference between chaos and inconvenience.  Leadership determines the outcome!

    If you have lost someone to Covid-19, cancer, accident, fire (I lost two family members) or other tragedies, statistical arguments are meaningless as the probability is 100%.  However, for the overall population likelihood of recovering from the coronavirus has always been quite high.

    Many questions have been raised regarding the myriad of conflicting “authoritative” information and misinformation the public has endured for 12 months.  With no conclusive or definitive game plan put forth by authorities, we were left to fend for ourselves.

    A resident of the Houston metropolitan area, this writer has noted that traffic is almost back to normal.  This suggests that the governed no longer have faith in political or medical leadership demanding yet another year under their ‘knowledgeable’ thumb.

    Once that credibility is lost, game over for leaders pontificating that to be safe we must hunker down forever.  Not sure even the Londoners did that during the Blitz.

    The Future is Bright

    Rulers attempt to dictate through a never ending series of edicts.  Knowledgeable governed conduct reasonable due diligence and make there own risk adjusted behavioral decisions.

    Likely, recent events are driven by the political class learning that enough is enough.  After all, we are adults and capable of living our own lives.

    Agree that the pathogen is still with us and we must address it.  Vaccines have a long history of success and processes are in place for safe openings.

    Society is opening with or without the politicians.  Remember the Speakeasies during Prohibition of the 1920s?

    Expect more to run to a microphone and claim leadership.  Ultimately, this process is irrelevant.  Getting out ahead of a parade and claiming to be the Grand Marshal does not make it so.

    Regardless, 2020 is over and there is NO interest in repeating it in 2021.  Message from the governed–we will take our chances going forward!  Our  R B C Framework model at work.

    Covid-19 is not over but seems to be getting to remission thanks to the army of men an women who have risen to the challenge in less than a year and saved countless lives.

    How are you leading your organization to recapture Normal?

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    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.

  • What Is Your Opinion Based On?

    What Is Your Opinion Based On?

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

    ~ W. Edwards Deming

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

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

    Opinions Are Like …

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

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

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

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

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

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

    So, What Are Your Statements Based On?

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    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.

  • Covid-19 Positive: Telemedicine Kicked into High Gear

    Covid-19 Positive: Telemedicine Kicked into High Gear

    Crisis Drives Change

    In 2001 this writer approached the Houston medical community, post tropical storm Allison which flooded many basements in the Houston Medical Center with the loss of experimental data and other records.  We proposed the development of an Internet based solution to hold and manage medical records of all types.  The response to my organization’s offer to digitize records was met with disbelief and ultimate rebuke.

    At the time I was employed by a major corporation with the technology and financial resources to accomplish this task.  Sales Objections included privacy, doctors will not ‘buy in,’ insurance will not pay for it and a host of other lame excuses.

    Flash forward to 2020.  Why are thing so different now and the idea of ‘digitalization’ almost universally accepted?

    Twenty years is a career for many, yet it took a crisis this year to kick the medical sector into action at critical mass—Coronavirus, aka Covid-19.  As often the case large organizations are content to stay with the status quo.  Culture, processes, and even individual bonuses incent lethargy and complacency.  This common trait is not limited to one sector.

    Moreover, advances in online telemetry support the physician’s ability to treat many aliments remotely.  The industry did not just ‘jump’ to the current state, it evolved over time.  For example, remote and inaccessible areas such as Antarctica have taken advantage of telemedicine including remotely directed surgeries.

    Democratization

    We may look back on 2020 as the seminal moment when medicine was digitalized.  Despite current access issues such as we are finding with K-12 education, most will have the ability to interact online in the near future.  Moreover, a number of COTS (commercial off the shelf) health solutions such as found in a variety of Smart phone products enable remote diagnosis and monitoring on a global basis.

    The catalyst for taking telemedicine to the next level is Covid-19!  A good Positive.

    How is your organization taking advantage of remote operational technologies?

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    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.

  • Input Response: Cycle Time Reaction

    Input Response: Cycle Time Reaction

    Melvin—a story of growth.  At beginning of my oil and gas career, I was partnered with my mentor to be and at the time my supervisor; Melvin.  A gruff old cuss, he was a long-time south Louisiana ‘Cajun’ field engineer.  Little did I know at the time the next months would be life changing for me.

    The task at hand was open hole logging of oil wells using electronics and later computer driven—early digital oilfield solutions.  There was the ‘book’ and Melvin’s version of the book.  Years later when I used Melvin’s approach in Mississippi and was initially challenged by my operators.  I able to show them the method was safe and faster.  Accolades later, Melvin’s added value to the process was monetized; again.

    What I learned in the early days in south Louisiana was not a short cut or work around.  Rather, it was from experts who understood the work processes better than the desktop engineers writing the manuals.

    Flash Forward

    As of this writing, the Boeing Max 8 seems to be back in the operational fleet.  Months of financial disaster when knowledgeable pilots already knew how overcome its software short comings.  What did they know that the ‘suits’ and desk bound engineers did not—experience in reality!

    The BUT is, too many depend on the technology when human override is required.  There are many stories of aircraft autopilots destroying the aircraft and killing all.  Why did the so-called pilot allowed that to happen?  Perhaps, they were not pilots but simply human observes of the technological aviators?

    One common human interaction with technology is the computer keyboard.  Often, we seek to type faster than the on-line system can accept our input.  Impatience, especially with online ‘lag’ prompts frustration and even anger.  Sometimes the result is a frozen system.

    Next

    Melvin taught this young field engineer how the real world worked.  Playing it forward, our interaction with technology is not a function of simply accepting what we are told, but understanding it uses and limitations.

    The human relationship with technology continues to evolve.  Not just IT but all manner of ways to make life better.  However, our relationship with it and how we RESPOND to it continues to evolve.

    For every ‘by the book,’ there is a Melvin who knows better.  Find your Melvin!

    How are you managing technology or is it managing you?

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    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.

  • How Dare You!!

    How Dare You!!

    Lessons in Leadership—how dare you put young people in jeopardy for loss of life or failures they will live with the rest of their life?

    As we end Veteran’s Week, we are reminded of President Herbert Hoover’s comment, “Older men declare war.  But it is the youth that must fight and die.”  Hoover was president in the late 1920s and died in 1964.  How many wars has the United States been in since 1930?

    Don’t bother to count—too many.  Probably more to come from political hawks who have never served much less been in combat nor have members of their family.  Not leadership but only positioning for personal gain.

    Disclosure: I have been in the military but not combat.  My father on the other hand was awarded the Silver Star during WW II.

    This piece is not about war or politics, it is about leadership or lack thereof.  After BP Horizon in 2010, this writer attended a conference where a VP responsible for operations from a well-known public oil & gas company admitted that he had never been on an offshore drilling rig but he and his colleagues were making arrangements to visit one soon.

    Dah!  What was he doing for 20 years—home office political parlor games?  Same is true for many Washington Generals/Admirals—check their resumes.

    You’ve Got to Be Kidding Me?  Yet it was true.

    This pundit repeatedly worked on drilling rigs during his 20s.  Begs the question, how can you ‘lead from behind’ when you do not have a clue what your people are dealing with?  How Dare You send young people in an operational grinder you know nothing about?

    Decision making, by definition is made with limited and incomplete data and information.  However, informed decisions are made by those who can put things in context.

    In today’ operationally intense environment, so called ‘ground truth’ is imperative.  Executives owe their employees, contractors and partners their very best and not just organizational politicly correct thinking.

    YOU are responsible for the lives and careers of your team and by extension their families.  There are countless suppliers of training, coaching, and all manner of consulting.  However, bottom line—Lead from the Front!

    The celebrated veterans of this week have blazed your trail.  The US infantry motto, “Follow Me” is not the vision of a desk bound manager espousing leadership consulting mantra.

    Admiral Chester Nimitz is credited with statement, “When you’re in command, command.”  Not the words of a manager but a leader.  I would take his dare.

    But you need to know what you are doing before you send young men and women into harm’s way, whether the military, oil field operation or any critical infrastructure mission or task.

    You owe it to them.  How Dare You if you don’t have the required expertise!  Bonuses don’t mean anything if members of your team are killed.

    Do Your People Respect Your Leadership?

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    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.