The Rapid Response Institute

Tag: Elon Musk

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.

February 20, 2025
Process Audit-Musk Style: A Systems Analysis Solution
“Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements.” Elon Musk has just changed the Auditing Game!

Most readers are aware that Elon Musk is leading a small task force of developers to assess the processes and spend of various federal government agencies, i.e., USAID. This pundit has been of the belief that this group is using Artificial Intelligence (AI) to address this, as he did when assessing the proposed budget in December 2024.
Observers were astonished with the speed and accuracy of this AI driven assessment. Gone are the days of thousands of pages of unreadable bills where congressional leaders demand instantaneous passage in the ‘wee hours’ of night. No more, “We have to pass the bill so that you can find out what is in it.”
Too Big to Fail, No More!
The long-standing mantra for major, critical sectors such as Money Center Banks is that they are too big and too important to be allowed to fail. By this logic, US federal government agencies are at the top of that very short list.
Assuming the following post on 𝕏 is factual, Musk and company have the developed the basis of a new company. One that will restructure the way auditing is conducted for large complex organizations.
The EKO article is a quick and compelling read, and we will not repost here. Key take aways, this pundit took include that crawling through decades of data:
Three subsystems were mapped quickly as were payment flows across agencies. Patterns were revealed that even career individuals did not know existed
$17 billion in redundant programs were detected and are growing
“The beautiful thing about payment systems,” noted a transition official watching their screens, “is that they don’t lie. You can spin policy all day long, but money leaves a trail.”
“That trail led to staggering discoveries. Programs marked as independent revealed coordinated funding streams. Grants labeled as humanitarian aid showed curious detours through complex networks. Black budgets once shrouded in secrecy began to unravel under algorithmic scrutiny.”
“By 6 AM, Treasury’s career officials began arriving for work. They found systems they thought impenetrable already mapped. Networks they believed hidden already exposed. Power structures built over decades revealed in hours.”
“Their traditional defenses—slow-walking decisions, leaking damaging stories, stonewalling requests—proved useless against an opponent moving faster than their systems could react. By the time they drafted their first memo objecting to this breach, three more systems had already been mapped.”
The list goes on, but readers get the point and can do their own detailed review. Also, one expects that much more will be made public in the near future.
https://t.co/8Yp9lZ9XE2
— EKO (@EkoLovesYou) February 6, 2025

Graphic is taken from the linked 𝕏 article.

Value Proposition to ‘We the People’
Bureaucrats are hired hands. The citizens of the United States of America are the client. Some argue that government is different than a profit or non-profit organization. But is it? Isn’t government responsible for delivering goods and services in accordance with its customers wishes? If not, what is the role of Washington, DC and every state capital?
This pundit has focused on Operational Excellence (OE). We have developed economic models that document (with support) measurable as well as soft value that can be attained and sustained from OE initiatives. We believe this approach is applicable to governmental agencies as well.
Nature of Auditing
According to the American Society for Quality (ASQ), Auditing has three components:
Process Audit–Verification that processes are working within established limits
Product Audit–Assess whether or not products and services conform to accepted standards and requirements
System Audit–Assessment of management systems, i.e., Operations Management Systems (OMS)
The principal objective of the systems analysis phase is the specification of what the system needs to do to meet the requirements of end users. Isn’t what Musk has done the holistic integration of data acquisition and initial assessment of the three components of an Audit?
There are no longer three components (four if one included financial reporting) but ONE. Not just Game Changing but the Creative Destruction of the esteemed auditing profession.
Future Role of Professional Services
This writer’s career spans the gulf of large software development teams to the configuration using tools by as few as one individual. This is a pattern many processes deal with, for example fast food, discrete manufacturing, energy exploration, medical and others.
Jobs are retooled and affected individuals find careers elsewhere and by the way, you’re never too old. Millions of individuals in the private sector have met this challenge and some more than once.
Apparently, Musk only had four (4) IT types working on this DOGE project. Certainly, others had to assess his findings and make decision, but the data acquisition was inexpensive and fast.
This suggests massive and wrenching changes to the professional services status quo. Smaller, focused with fewer billable hours compensated teams. The upside, this may lead to a Value Pricing Model.
Musk Auditing LLC?
Has Elon launched another company with the high visibility first customer? This pundit thinks so. And what a demo!
“The US Auditing Services Market size is estimated at USD 51.88 billion in 2025, and is expected to reach USD 60.94 billion by 2030, at a CAGR of 3.27% during the forecast period (2025-2030).” I rest my case. Then there is the Rest of the World!
One lesson for all of us; any profession can be instantly made irrelevant with emerging technologies and the will power of new entrants. At all costs, stay ahead of the curve.

How will your organization deal with this game changer?

Pre order our new book
Navigating the Data Minefields:
Management’s Guide to Better Decision-Making
We are living in an era of data and software exponential growth. A substantive flood hitting us every day. Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices? This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?
Available April 2025

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.
February 10, 2025
DOGE’d

The Day the Congress Stood Still

On December 18, 2024, Elon Musk delivered on the social media site, 𝕏 the death knell of a 1500+ page so called Continuing Resolution that was to stave off a Federal Government shutdown. Later it was replaced with a much shorter (100+ page) bill that passed largely intact.

This Out-of-the-Gate action by the Non-Government Organization (NGO), DOGE (Department of Government Efficiency) may foretell the next 18+ months of DOGE’s self-imposed life ending July 4, 2026. This first Musk assessment revealed extensive and massive political pork earmarked spending.
The Congress and all manner of hired bureaucrats may face increased public scrutiny, posted for all to see. Who knows, the idea may expand to all levels of government and their hired hands.
Creative Destruction
Previously, we discussed this economic substitution model. “The economist Joseph Schumpeter was the first to coin the term creative destruction–the destruction of old markets and those active in them through innovation, & inventing of new markets, this can be new technologies, methods, business models, services, or products.” One can argue that the creative destruction cycle time is very short today.
And perhaps getting even shorter!
Gort or Grok?
In the original (1951) movie, The Day the Earth Stood Still, the robot Gort has the ability to destroy the world. It is prevented from doing so by the utterance (by a human) of the key words, “Klaatu barada nikto.”
According to 𝕏, the Artificial Intelligence (AI) robot of today, Grok (formally defined as “to understand something”) “leverages the 𝕏 platform to understand what’s happening in the world in real time. We recently launched two additional features to enhance this experience even further: web search and citations. Now Grok draws upon posts from 𝕏 and webpages from the broader internet to provide timely and accurate answers to your queries. We also added citations, so you can easily dive deeper into a source to learn more or verify the information provided by Grok.”
Fortunately, three simple words neutralized Gort, and the earth was saved. Grok will not so easily be rendered impotent, unless the First Amendment is repealed.
The government world has been (figurately) creatively destroyed and changed forever. Moreover, in their world of consistent suboptimal performance, most have no idea what has already happened to their cherished long-standing bureaucratic processes.
The Regulatory Public Comment period will never be the same.
After DOGE
It appears that Musk has put in place an AI solution that will live on after the formal closure of DOGE in 2026. Grok and other emerging AI tools can continue to review and assess each and every piece of proposed legislation and other government edicts regardless of length and/or complexity.
Like Hacking, those opposed to honesty will seek ways to thwart AI. Those providing transparency solutions will need to stay one step ahead, just like law enforcement agencies that are required to enforce and uphold the law. If accepted social behaviors norms are to prevail, transparency is demanded.
Finally, we can “read the bill to find out what is in it.” Prior to voting!
This Accountability Sucks!
Well, get over it! One suspects entrenched vested interests will try to find ways around this revolution, but likely to no avail. There is not only a new sheriff in town, even after he leaves, the new accountability will remain.
And so much for the current media business model whereby either a single individual or small group amalgamates society’s daily activities and present the proletariat with their (often agenda driven/opinionated/biased) version of THE NEWS.
How will you take advantage of the AI delivery of information?

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.

December 23, 2024
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:
A Theory of Motivation proposed by (the late) Steven Reiss, Psychology and Psychiatry professor emeritus at Ohio State University in Ohio, USA.
Human Wants: Meaning, Classification and Characteristics: A listing of economic and non-economic wants.
The Four Stages of Desire: From Everything to One Thing
30+ Human Needs: A Comprehensive List — maps to Maslow’s Hierarchy
The Ultimate List of 100 Life Goals To Achieve Before You Die
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:
Question Every Requirement
Delete Any Part or Process You Can
Simplify and Optimize
Accelerate Cycle Time
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.
November 15, 2024
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.

October 31, 2023
Innovation: The Key to the Global Future
Henry Ford, the Founder of Ford Motor Company is famously attributed to this statement. “If I had asked people what they wanted, they would have said faster horses.” In other words, most of us think linearly.

One wonders if this line of reasoning is the best way during the current situation. Perhaps, non-linear mindsets are more appropriate.

Challenges

Currently, many define an existential threat as Climate Change. Additionally, the global economy, the War in Ukraine, bad actors and other ills make the daily news. We are also told the time is of the essence. However, it appears the window will close before the appropriate linear responses can come online.

As the pandemic unfolded in early 2020, we penned a piece on the role innovation would play addressing the global scourge. We put forth some points we believed salient at the time such as:
- The rise of remote work
- The ability to scale quickly, i.e., vaccines, ventilators, et. al.
- Changes in Clinical Trial protocols
From the same blog, this pundit has long advocated that, “the use of knowledge enabled by technology can reduce project cycle time dramatically. It can also significantly reduce project cost as well.”

As we look back on that period, the collective global ‘we’ accomplished a lot. A plethora of useful materials were developed and published by all manner Subject Matter Experts (SME) as well as those with ‘life knowledge.’ We chose to capture and repost materials (Covid-19 Business Continuity Resources) that could of use to those business executives struggling with work force issues. These materials remain available.

Regrettable, the term SCIENCE was terribly misused, including by medical professionals and professional scientists, all of whom should have known better. This discussion is further developed in our blog, They Blinded Me with Science. For interested readers, the piece develops the concepts of science and pseudo-science as well as a brief methodology all can use to help them assess what they are being told about major issues.

Actual Science has moved humanity out of the caves and into our modern world. Likely, it can help us address current and future global challenges. The proven innovative use of the Scientific Method is one path forward.

SpaceX – NASA

Elon Musk is in the news for a number of reasons. He is perhaps one of the best know billionaires. In the opinion of this pundit, the partnership between his company SpaceX and NASA appears to be one of the most productive Public-Private Partnerships (PPP). Perhaps this good or best practice could be emulated by others seeking new ways to innovate.

Realistic Energy Transition

Energy Transition is all the rage with all manner or organization jumping on board. Somewhat reminds me of the late 1990s dot.com era. According to Wikipedia, after the ensuring bust, “the NASDAQ-100 had dropped to 1,114, down 78% from its peak.” Makes one wonder that this might not be the first rodeo for the latest ‘change the world shinny object.’

Previously, we noted that the replacement of a major highway ramp in Houston, TX USA is slated to take two years. Additionally, according to McKinsey, “The goal is to install 500,000 public chargers—publicly accessible charging stations compatible with all vehicles and technologies—nationwide by 2030.” Message: infrastructure development takes a certain amount of time.

Also from McKinsey, “Capital spending on physical assets for energy and land-use systems in the net-zero transition between 2021 and 2050 would amount to about $275 trillion, or $9.2 trillion per year on average, an annual increase of as much as $3.5 trillion from today. To put this increase in comparative terms, the $3.5 trillion is approximately equivalent, in 2020, to half of global corporate profits, one-quarter of total tax revenue, and 7 percent of household spending.”

As of this writing the global stock markets appear to be in freefall. Some believe, including this author that a Recession is imminent. This begs the obvious. How will this linear effort be paid for and what will be the return on this huge investment?

There must be a better way.

Innovate, Innovate, Innovate

In his recent book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet noted climate change advocate, Bjorn Lomborg expresses concern regarding linear type scenarios and investments being made reduces climate change to Net Zero.

He argues that regardless of efforts made such as described herein, we will not defeat global warming. The temperature will rise anyway.

If this is the case, then the ROI from a $275 trillion dollar commitment may in fact be negative. This might spell economic disaster at a sustained level.

Lomborg makes the case that innovation is key. His perspective seems to be more on university led research supported by governments. There is a role for government to fun basic research and many have for decades.

Entrepreneurs have been advancing humankind for hundreds of years. With proper market signals, we can expect a new generation to rise to the occasion addressing the energy transition and ultimately climate change.

The author is aware of a number of ‘Green’ efforts underway to encourage the development of new commercial technologies. While not advocating for investment in an Incubator or Accelerator, it seems reasonable that start-up organizations addressing these challenges be encouraged.

What Role Does Innovation Play in Your Firm’s Approach to Climate Change?.

For More Information

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

The author’s credentials in this field are available on his LinkedIn page.

Disclaimer, the author has no personal or business relationship with Bjorn Lomborg or his publications other than reading and commenting on his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

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

For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game. You can contact this author as well.
June 13, 2022
Is Your Remote Team Aligned?

Recently, my team and I were tasked with a delicate decision making process. Due to its nature and signatory level, team members were only authorized to explore and present options. The final decision was mine alone. Our project governance model clearly defined this decision making process.

One day I received a call from remote members explaining they were going to a vendor site to assess our options–I concurred. Several hours later they let me know that they had made a decision and signed a contract. When challenged about their actions they informed me that the vendor had demanded that they ‘act fast.’

Twice in my career I was the C level executive responsible for global operations. In one case, one of my direct reports was in a different office along with my boss, the CEO. I received multiple calls from the CEO over a period that ‘so and so’ had stopped by to talk and decisions were made about my operations. “Well you were not here was the excuse and it seemed like a good idea to me.” Would it surprise anyone that ‘so and so’ was relieved shortly thereafter?

In another, the software development operation was in a different part of town. Development plans were agreed to and then in some cases materially changed with without authority or even informing management. Needless to say, projects were late or not completed. After a few weeks of this, the development lead was terminated.

Remote Management Governance

Based on the above paragraphs, some may argue that I am not a very good manager. Perhaps, they are right; however, the point is remote management can be very difficult. Empowered individuals and teams must have boundaries.

Yes, hire smart people and get out of the way. However, there are limits as even Steve Jobs, the micromanager would agree.

Evidence suggests that working remotely has its challenges and not everyone is well suited for it. Some individuals will need additional support.

There is a great deal of information available about remote management. Some is sound, but this Though Leader on the subject disagrees with much the advice. It seems for many, this is their ‘first rodeo’ while remote management goes back to antiquity. While not the first, the Roman Empire functioned well from a bureaucratic or management perspective.

Inclusive Teams

Currently, much of the discussion focuses on the Inclusion of team members. We are recognizing that Diversity is not enough if not every one participates.

Previously, we had put forth the construct that cross cultural teams have many of the same characteristics of diverse groups. We can extend this model and success that Inclusive Teams include those individual who are not as well suite for remote teams as others.

Managing diverse remote teams and assuring that all team members are valued contributors requires a level of managerial engagement that is constant, consistent and appropriately empowering. ALL members must be encouraged to participate and their input must be acknowledged by the others. Only then can Steve Jobs and Elon Musk like decisions be taken and not by those who tend to dominate groups unilaterally.

D&I in a Post-Pandemic World

Typically, D&I has been defined as a function of ethnicity and/or gender. Last year we put forth the construct that Cross-Cultural and D&I are similar models of human behavior and best practices from both could add value to the other.

Diversity must now include those are not well suited for new business models; however, flawed they may be–jury is still out regarding the effectiveness and efficiency of full time remote teams. Inclusion means they must be actively involved. Leaders at all levels must assure this model is successful.

How Do You Assure the Reluctant Remote Team Members are Included?

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.

January 28, 2021