The Rapid Response Institute

Tag: Internet of Things

100

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

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

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

Available Tools

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

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

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

Pulling It All Together

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

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

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

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

How is Your Organization Positioned for the Next Four Years?

For More Information

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

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

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

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

You can contact this author as well.

January 10, 2022
Resolve 2022: Close More Deals!
This edition is taken from our forthcoming book tentatively titled, Techniques for Successfully Closing Deals in the 21st Century.

New Year’s Resolutions

We all make them and in many cases they are short lived, often falling by the wayside before March 31. So as we ponder what the new year will bring, most in the revenue generation flow process resolve to increase their deal pipeline and close quickly and often.

One of the problems we have with resolutions was well stated by no other than Albert Einstein who defined insanity as “doing the same thing over and over again and expecting different results.” While there is some argument as to whether this citation should be accredited to him, the point is well made. Old habits are hard to break.

Organizational culture plays a role in the sales cycle as well. Are sales representatives seen as ‘cowboys’ or are they a vital leader/member of a team? These revenue generation models will likely be diametrically opposed and for any given business sector give different results.

Complex Selling

The selling process has been well documented and there are a host of tools and expertise available and have been for decades. Pioneers like Zig Ziglar have been followed by a plethora of pundits and professionals offering all manner of sales advice, tools and now enhanced by digital marketing models.

For this cottage industry, some approaches work and some do not, i.e., CRM driven cold calling, ‘Let’s Jump on a Call I Know I Can Help.’ The other endearing message from today’s digital marketers include, “how would you like to increase your profit by XXX this year?’ And the ever popular snide, scoffing remarks when recurring computer driven emails/texts are not answered. Guess they are OK shutting themselves out of future business opportunities. These are newer versions of the long distance telephone services telemarketing boiler rooms of the past.

Managing Complexity

Can complexity be simplified? Not in the way many believe. B2B selling cannot be meaningfully reduced to three (3) bullets on a slide anymore than the Space Shuttle launches or Deepwater drilling can. When overly simplified, disaster is one possible outcome.

Behavioral economics as defined in our Structural Dynamics model states that, “decision-making model recognizes that societal, cultural and emotions among other biases contribute to how decisions are made.” ESG?

Despite claims to the contrary, humans are not very good at multitasking. We cannot juggle as many complex balls as we think we can. This is the reason airline pilots continue to use checklists even though some have 20 or more years of experience.

The Structural Dynamics methodology was developed to enable individuals and organizations to better manager the large number or measurable and latent variables in complex environments. While the model is based on mathematics, daily use does not require a technical background. Sales reps can use its premise to navigate the complex sales process.

Role of Inclusion

Sales Teams (in person/virtual/hybrid) are often already in place with sales representatives a member. Paraphrasing Donald Rumsfeld, “You go to war with the sales force you have, not the one you might want or wish to have at a later time.” Therefore, it is critical that every member of the team be fully engaged and heard. Some of the best ideas come from those who may feel they are outsiders.

Moreover, a diverse set of perspectives better enables creative or thinking outside the box solutions. Finally, it is an advantage for the sales team to mirror the procurement team so as to better understand ‘buying influences.’ This model is further developed in our eBook, Closing the Complex Deal: Your Economic Value Proposition in 10 Minutes or Less.

The Conductor

One can think of the Account Manager as the conductor of an orchestra albeit with two sections. While he or she may be a musician, the conductor does not contribute musically. The conductor leads the ensemble in the delivery of a performance. Hopefully, to a standing ovation.

It is important to understand that NO ONE in this sales process is a direct report to the account manager. She must convince all parties (including outside third parties) that her vision is the right one. She must also adapt accordingly when new information becomes available.

To finalize a deal, both the seller and buyer organizations must be aligned and in agreement. While it is beyond the scope of this piece to go into the details shown in the graphic below, suffice that each organization(s) or the ecosystem participant/member must have his or her value requirements satisfied.

Keep in mind that all parties are culturally distinct. Cross cultural or diverse engagement is a hallmark of this value exchange and should not be overlooked or minimized.

The number of economic actors in a major procurement can be large. It is important that they all be identified and managed accordingly. After all, it only takes one to torpedo a deal and that can happen at the very last moment.

Homework, Homework, Homework

Early in this sales rep’s career, I was tasked with making at least two, in-person sales calls a day. So in addition to visiting customers, I had to make telephone calls to get appointments for the 40 sales calls a month required. Needless to say in my naïveté of the selling process along with the demand for meeting this KPI, along with other duties such as client entertainment my level of preparedness was less than optimal. Therefore, not surprisingly my ability to make ‘quota’ was at risk.

My sales fortune changed forever when my sales manager authorized, what was at the time a unique approach. We would focus on fewer, better qualified prospects and spend the energy to better understand their needs. We would then develop an action plan to address the individuals‘ pain points. The result was my first multi-million dollar sale that was also ten percent of my division yearly revenue. The rest as they say is history.

Rather than doing the ‘back slapping good ole boy’ routine, we took the time to build the multiple relationships with the individuals on our customers’ procurement team. That meant not only doing a deep dive on their firm but also better understanding the immediate business needs as well as career aspirations.

So instead of the ‘Jump on a Call’ mentality, we became the Trusted Advisor who truly knew their business and could actually help the individual team members we were interacting with. Don’t forget what Louis Pasteur taught us. “Chance favors the prepared mind.”

Those Dreaded Gates

Ever wonder how a customer’s budget is developed? Does she just request funds and proceed to buy your products? It is a little more complicated than that. Most large organizations have a specific set of steps ALL capital funding (CAPEX) must go through.  These are typically referred to as ‘Gates’ that vary slightly across organizations. However, the effect is the same.

Initially, firms undergo a planning process. This is an Internal process although certain subject matter experts and/or outside consultation may be sought. Once a Need has been identified further definition, including a project plan is developed.

At this point, certain Key Partners may be brought into the effort usually under a non-disclosure type of agreement. These are Trusted Advisors with important knowledge and insight into the problem at hand.

The third gate, Design Basis is the point at which the project scope and deliverables are developed and approved. At this point, the organization may seek input or bids from its Suppliers as well as other sources.

Once the technology assessment is complete and procurement finished, the design is finalized and the project implementation process begins. In this model, Implementation means the entire life cycle of the CAPEX, including the project build to decommissioning.

For more information on this process, see the hypothetical case study, How To Make The Case To The C-Suite Selling Large Scale Data Management Projects to the C-Suite. This piece provides some insight into the work individuals in an organization undertake before even asking for funding, much less receiving it. In the article, the project champion must also develop the economic value proposition before briefing the Chief Financial Officer (CFO).

The Value Prop

One of the most difficult challenges facing organizations is articulating the value proposition(s) their product/service lines brings to stakeholders. Many still offer the Feature–Benefit model whereby users enjoys traits of the product. For example, the German automobile company BMW’s tagline, “Sheer Driving Pleasure” sends a clear message regarding the benefit of driving one of its cars. However, one wonders if his approach works as well for flat screen televisions where most features are essentially the same for all suppliers.

Almost 20 years ago, this writer was working with a large public company that was making a large digital CAPEX decision. As part of this process, we looked at their organization through the lens of the Conductor described above.  From this perspective, each economic actor must see a demonstrable value if she/he is to ‘sign off’ on the deal.

Many consumers of technology do not know a bit from a byte. Nor should they. Products/Services procured are used to solve real business problems. While cool stuff like Artificial Intelligence (AI) are all the rage, so what?

Paraphrasing Peter Drucker, Business Metrics Eats Cool Stuff for Lunch Every Time. If a realistic business driven value proportion is not put forth, the deal will not close. Moreover, prospects may decide that this vendor is not useful going forward either and not make the vendor short list.

It takes time and frankly considerable effort to construct a useful Economic Value Proposition. The Conductor must find all key players and address their needs financially. While many will want to gloss over this hard work, success will be elusive if this process is skipped.

To that end, we have developed our Economic Value Proposition Matrix (R) which is a useful tool for identifying a full value proposition from all economic actors in the ecosystem. Moreover, when the Conductor seeks input from all sources the buyer essentially has ‘sold themselves’ on the project. As previously noted, this makes the internal sales effort that much easier.

It is tempting to fall in love with technology. Who amongst us does like appreciate the convenience of smart devices? But is it the technology we love or the value we receive from using it? Any value proposition put forth must demonstrate to potential users that it makes their life better.

Win-Win

The concept of both sides feeling good about a deal is a great definition of success. Even better, if the provider is viewed as a Trusted Advisor the value of the relationship may approach exponential returns for both parties. This point cannot be overstated.

Getting From Here to There

Some may see these as aspirational goals and difficult if not impossible to achieve. There is a process towards moving to a more mature sales model. Each step in this maturity process involves training and possibly mentoring.

However, typical sales training may no longer be applicable. With the focus on selling as opposed to the development of a Relationship between the organizations, the attempt is to move merchandise. This old vendor model persists and clouds the real value that can be attained.

A more enlighten view recognizes that each party to a deal is an independent yet co-dependent economic actor. As such cultural differences must be accounted for. In essence, the Behaviors of each are somewhat dependent on the situation or Conditions at any given time.

Originally, taken from the author’s doctoral dissertation, the RBC model has been extended to include the selling process. The Conductor must assess the behaviors of all against the condition at the time. Only then can he or she understand the relationships among parties and what next steps might be.

One tool that is available is our Cross Cultural, Cloud based Deal Negotiation serious game. This solution puts players into a realistic situation or Condition and trains teams (defined earlier in the Conductor) to arrive at collaborative agreements. The Win-Win necessary for success.

Final Thoughts

Closing deals is a complicated process. The approach described herein is tested and proven. It is a challenge to address the myriad of chess pieces moving on the deal board. However, successful sales reps oversee and guide the players.

As the saying goes, selling today is ‘not your grandfather’s approach.’ Buyers are very demanding and the ‘drive by’ approach to selling will not generate success. The ‘Let’s Jump on a Call’ model is so 20th Century. Here is wishing you all success!

For More Information

Look for our forthcoming book on this subject. Due out later this year.

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 Sales Game, check out our Cross Cultural Serious Game.  You can contact this author as well.

Dr. Shemwell’s Sales Experience
- Acknowledged authority and author on Hi-Tech B2B at global scale
- Total direct sales of over $3 billion during career – extensive international experience
- Head of Software Business Unit w/P&L Responsibility
- As an International Sales Executive sold a single order in excess of $350 million (in today’s dollars) – hardware and software systems to global Japanese firm in Tokyo
- Responsible for revenue generation of over $500 million as sales manager for oilfield operations outsourcing
- Over $40 million in professional services in a single fiscal year
- Serial entrepreneur, exit (merge/sold) two start-up firms
January 5, 2022
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.

June 27, 2021
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.

June 4, 2021
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?

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.

December 5, 2020
Linear Metrics in Non-Linear Times?

“If it disagrees with experiment, its wrong”

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

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

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

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

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

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

Our Lying Eyes

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

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

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

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

Hypothesis—Disruption cannot be accurately measured with traditional tools.

Learnings

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

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

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

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

For More Information

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

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

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

You can contact this author as well.

October 24, 2020
Technology Assessment in the Era of Minimum Viable Product (MVP)

App developers have fallen in love with the concept of Minimum Viable Product aka MVP. Wikipedia defines minimum viable product (MVP) as “a version of a product with just enough features to satisfy early customers and provide feedback for future product development.”

This development model might make some sense for consumer software or even some business data analytics but how does it work for mission critical software and those apps that allow remote connectivity to those data resources? MVP is problematic in these cases at best.

Most mission critical software development organizations understand that robust testing is necessary, yet sometimes the specter of the MVP mentality sneaks its camel nose under the tent. Think this does not happen? Think again.

The Boeing 737 Max 8 is one current example of this phenomena. One can argue that the costs to this organization, its customers and the flying public have been astronomical and perhaps not measurable.

Many of us will not be flying any time soon and many months ago this writer has been told by a knowledgeable individual that safe work around for the Max8 software issues have always been readily available—even before the crashes. There is a more onerous issue that affects everyone on the planet is widely accepted by policy makers.

We extend the construct of MVP to Minimum Viable Thought. MVT is defined as, “The version of a decision that the decision makers believe will be accepted by organizational executives and public policy makers.”

As of publication, this statement is posted on The Institute for Health Metrics and Evaluation (IHME) at the University of Washington. “To construct our “Current projection” (the line that shows what we think will most likely happen), we assume that in each location the trend of easing mandates will continue at its current trajectory until the daily death rate reaches a threshold of 8 deaths per million. If the daily death rate in a location exceeds that threshold, we are assuming that mandates will be reintroduced for a six-week period.”

We do not dispute modelers making assumptions. We do that same. However, this caveat. Decisions made based modeling assumptions such as these often lead to cataclysmic results.

The concept of MVP can be a slippery slope. In an era of rapid software/data release, the risk to the public whether in airplanes or a pandemic can be huge.

The assessment of such technological solutions needs to be robust and thought through. Not the knee jerk response often seen.

How do you assure new technology implementation does not material negatively impact on your business?

For More Information

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

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

June 30, 2020
Agility, Resiliency, Sustainability

In a recent Harvard Business Review, I was struck by an article about Best Practices for small businesses. From that piece, “To successfully navigate Volatile, Uncertain, Complex and Ambiguous (VUCA) challenges like Covid-19, family business leaders can look to best practices from another organization that specializes in VUCA situations—the U.S. military’s Special Operations Forces (SOF)” (emphasis added). There are a lot of good ideas in the article that organizations can implement immediately. Moreover, we have long recognized that properly vetted and adjusted as necessary, Best Practices from others can add significant value to organizations in other industries.

Out of the Darkness

It is easy to be overwhelmed these days. Mildly put, most if not all organizations were thrown into chaos in less than a month. Depending on your business you are either partially operating or still waiting to open-up.

Regardless, how you work in June will be different than early March (~60 days as of this writing). Traditional recession management and recovery techniques may not be applicable this time.

There are lots of ideas about how to use technology going forward. Digitalization, IoT, IT-OT, among others are hawked as THE solution. Problem is, it is not that simple, and it takes time and money to implement. Many midsize firms do not have those privileges/resources.

There are a lot of actions most organizations can take without major CAPEX investments in time and money.

Years ago, we recognized that certain industrial sectors, particularly those with a high-risk profile such as energy or others deemed to be part of Critical Infrastructures face unique challenges. Some have a tendency towards incremental change or even the status quo. Change is often slow with setbacks.

Moreover, for every major firm there can be thousands of organizations in the supply chain ecosystems all of which must work well if total costs and profitability for all are to be effectively addressed.

This seemingly daunting task yet it need not be. There is a solution set available that can help organizations manage through this dark period and into the light, thriving.

The mission of The Rapid Response Institute is;

“Helping Clients Achieve Organizational Agility, Resiliency and Sustainability”

To that end, we have developed solutions, methodologies, and tools enabling enterprises of all sizes to not just survive but thrive after disruptive events. Much of this is either free or at low cost.

Rapid Response

In our 2009 White Paper, Rapid Response Management: Thriving in the New World Order we posited our new approach to managing your business. “Rapid Response Management (RRM) is an organizational construct or mental model that enables the organization and its key partners to rapidly sense changes and respond accordingly–quickly. While it maximizes the effectiveness of management knowledge to address change, it is not simply gut feel. Rather it is a simple yet sophisticated, methodical paradigm any organization can quickly and inexpensively implement.”

RRM is a creative and well documented method for running your business. The thinking was well advanced by 2009 and has been further ‘stress tested’ over the past decade.

We have updated RRM with our Operational Excellence Platform and interested readers are invited to check that out as well. Our offerings are designed to help our clients get through crises such as Covid-19.

We are updating this white paper and it will be available as an e-book in the near future. If you would like to reserve a free copy, Contact us.

We are here to shed some light during this dark period. For no cost, no obligation discussion contact us. We can put decades of experience dealing with business cycle adversity on your team.

Feel like your trapped? You’re NOT!

For More Information

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

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

We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 on April 9, 2020. The summit will be offered again soon. Check it Out!!

You can contact the author as well.

May 14, 2020
Tumultuous Decade: What’s Next for Oil & Gas?

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

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

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

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

Darkest Before the Dawn

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

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

Note: This chart is current as of March 2020

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

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

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

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

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

How Are You Positioning Your Career to Capitalize on Disruption?

For More Information

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

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

We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 on April 9, 2020. The summit will be offered again soon. Check it Out!!

You can contact the author as well.

April 20, 2020
10, 20, 30, 40, 50 or More!

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

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

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

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

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

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

Agility

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

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

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

How Does Your Organization Ingest New Technologies?

Enjoy this flash back to the 1960’s.

For More Information

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

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

You can contact the author as well.

End Notes

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

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

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

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

January 28, 2020
Reflection: Are We Near a Digital Tipping Point?
Generally, this time of year humans are wont to look back on the closing year and assess the good and the bad, and dare I say the ugly? We celebrate successes, review the not so successes, and what is left undone. This process prepares us for the New Year’s resolutions that are often then broken.

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

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

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

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

News media reporting suggests that if astronauts had been on board, they may have been able to override the system and correct the problem. This is an area we have addressed herein on several occasions. When does the human act? Recent articles include:
- In Defense of Humans—Machines Are Not Ready Yet
- Man—Machine: Extension or Versus?
The decision model whether to override the computer remains elusive. Likely, it will for some time.

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

Not Just Digitalization

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

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

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

Maturity Assessment

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

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

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

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

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

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

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

What is Your Digitalization Management Maturity Level?

For More Information

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

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

You can contact the author as well.

End Notes

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

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

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

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

https://www.popularmechanics.com/flight/airlines/a26854898/plane-automation-crashes-incidents/
December 31, 2019
Lessons from the Seventies

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

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

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

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

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

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

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

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

Body of Knowledge

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

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

Fail Fast, Fail Often?

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

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

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

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

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

For More Information

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

You can contact the author more information as well.

End Notes

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

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

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

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

November 12, 2019
Chain of Custody: Is Your Management System Ready?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

September 15, 2019
Brand Your Digital Oilfield Culture: Internalize Its Transformation
Our recent article, “The Digital Oilfield Culture: Transformation Value for the Organizational Ecosystem” (pp.24-26) takes a somewhat different change management approach. Why not brand your digital oilfield culture?

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

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

Digital Oilfield Culture

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

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

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

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

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

Brand Wheel Construct

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

Facts & Symbols or those components of the Brand that address the “hard” and often more measurable aspects.
- - What the Culture does do for ME
  - How I would Describe the Culture
Brand Personality addresses the more emotional side of the Brand
- - How the Brand make ME look
  - How the Brand makes ME feel
The wheel is then populated with those criteria of interest to the organization (generally developed through a series of workshops at all levels of the firm and its ecosystem). One example is depicted in the following (Version 1.0) graphic.

Final Thoughts

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

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

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

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

For More Information

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

You can also contact the author as well.

End Notes

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

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

Ibid.

https://en.wikipedia.org/wiki/Cola_wars
June 27, 2019
I Hate These Things: Why Does This Always Happen to Me?
We have long argued that people will change if they understand the new idea/technology value proposition—what’s in it for me? For some, this question is more difficult to answer than others.

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

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

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

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

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

To change the Relationship that individuals have with technology, management must understand that those who resist may exhibit two traits:
- Impaired capacity to apply the ‘new’ to daily tasks
- Perception that it does not help them
Those regular readers of this blog are aware of the R B C model (Relationship, Behavior, Condition). From our Cross-Cultural Serious Game, the model was originally developed to address issues around cross cultural (international) negotiation processes. Relationships are the focal point of this perspective, reflecting commonality of interest, balance of power and trust as well as intensity of expressed conflict.

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

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

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

How Does Your Organization Overcome Resistance to Change?

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

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

www.rri-ccgame.com

https://therrinstitute.com/wp-content/uploads/2017/10/structural_dynamics_-__version.pdf
April 7, 2019
You Have 10 Minutes: Maybe

Over the past couple of weeks this writer has been part of several conversations regarding the value proposition of technology for established as well as startup companies and how to articulate it.

This remains a tough subject and we have been addressing it over the years. However, there is an approach that is successful when properly executed.

As part of master’s level course, one graded test for my students goes along these lines. You have been given the opportunity to ‘pitch’ your CAPEX/Technology Sale to the Chief Financial Officer. In the current market environment, she is skeptical about new capital investments. She is the economic buyer, very busy and has allocated no more than ten minutes for this meeting? How will you close the deal?

Students are offered the opportunity to select their own project or sales initiative, so they are very familiar with the background. This also allows them the opportunity to ‘rehearse’ with the instructor before the actual meeting with the CFO.

First, What Not to Do

Sadly, many sales representatives/internal project advocates view the selling process through the following lens:

The merits of this project or technology solution are obvious. After all, everyone agrees we must move forward.

The Return on Capital Employed (ROCE) or Net Present Value (NPV) is clear on the chart presented. The justifications (spreadsheets) support our plan.

Moreover, senior executives only want the single PowerPoint slide and high-level risk overview. After all, she doesn’t want the details and has been briefed by her staff. How much can be discussed in ten minutes anyway?

Hit–Lost Deal Button!!

If this scenario sounds far fetched, it is based on reality. At an Internet of Things conference, one panel moderator from a major professional services firm advocated that IoT investments must be made to remain competitive because everyone else is doing it. When this attendee asked about project governance and risk mitigation planning, was told it was outside the scope of the discussion.

What Drives Decisions?

One of the first things this sales guy does when preparing for a meeting with senior executives is to read the Letter to Shareholders in the customer’s Annual Report. Typically, the strategy, challenges and priorities of the firm are easily discerned.

If the project/solution is not aligned with business, success is much less likely. Also, how does it fit in the firm’s portfolio of projects/technologies?

Often risks are not as well understood as they could be with simple models suggesting exposures are low and unlikely. Many sale representatives do not even think about the governance issues associated with the ‘spend.’

Expect a senior executive to be engaged and ask insightful even tough questions. They have to be answered—with authority! Can’t wing this, only homework will prepare for this meeting!

Finally, what drives her? Not the company; the individual.

Hit–Won the Deal Button!!

Is this in the ‘too hard to do’ category? Not at all, and processes and means are available to guide this course. Several tools are available such as our Economic Value Proposition Matrix® and the white paper Asset/Equipment Integrity Governance: Operations—Enterprise Alignment. These can help guide your closing efforts.

Not a typical sales model but it works—several billion dollars later!

Lessons from the Classroom

As might be expected in an academic environment, many students struggled to reduce the data into a ten-minute compelling pitch. Mark Twain is credited with saying “I didn’t have time to write a short letter, so I wrote a long one instead.”

It takes significant effort to succinctly address complex multi-faceted problems. A classic; when tasked to write a one-page executive summary one student submitted a multi-page report with appendices. His retort was that the subject was too important to only write one page on it. This response defeated the learning objective of the exercise.

CFO’s do not make trivial decisions. If you would have her take time to listen to you. Be prepared!

Is the Deal Worth Winning?

For more information check out our Value Proposition Matrix® and the Digital Oilfield Case Study.

April 1, 2019
Is Your Digitalized Organization Cybersecure?

Here is How to Find Out!

It seems that everyday a new major cyber breach is announced. The Rapid Response Institute and its Principals have addressed this issue many times through a variety of venues and publications.

We recently conducted a workshop, “Implementing Digitalization: A Game Changing Transformation of the E&P Sector.” The Cybersecurity of this sector transformation is critical to its success.

Moreover, since “this is the way we run our business,” Cybersecurity is now a Board of Directors issue and an integral part of its fiduciary responsibility.

As part of our continuing effort to add value to Operational Excellence and Risk Mitigation processes, it our pleasure to feature this recent Public Television interview.

We encourage you to watch this 30 minutes discussion with one of the world’s leading Thought Leaders in the Management of Cybersecurity for Critical Infrastructure Sectors such as oil & gas, electric power generation & distribution, medicine and others as identified by the United States Department of Homeland Security.

Patriot Act of 2001 defined critical infrastructure as those “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters.”

We believe you and your organization will find watching this video time well spent. Also, should you wish to talk further with her please contact us and we will arrange this.

Stay Cyber Safe!

April 15, 2018
Precedent Matters: Physical and Cyber Security Materiality

Cyber-attacks continue, seemingly unabated. Major industrial incidents seem to remain regardless of efforts to curtail them as well.

In many cases significant shareholder value is destroyed and perhaps never to be regained. Lives are lost and business models compromised.

In isolated incidents, senior executives “retire.” Usually, it is business as usual until the next time with the promise not to do it again. However, there is precedent for punishing organizational maleficence.

Regarding cyber security, the digitalization process underway places the process of managing information technologies into the arena of “core competency.” There are several definitions of the term. Digitalization is the process of using digital technologies as a way of doing everyday business. In other words, this process is material to the well being of the firm.

While not an attorney nor offering advice, one can observe that in the late 1990s another software issue was so concerning that the U.S. Securities and Exchange Commission issued guidance for public companies and others regarding the risk and materiality of exposure to the so-called Y2K date rollover. Most affected firms had significant efforts underway to assure business was not disrupted and/or risk mitigation strategies were put in place.

Shortly thereafter, the activities of Enron, MCI and others resulted in the Sarbanes Oxley Act of 2002. Section 404 of that act requires firms put in place “management systems” to assure adequate and effective internal controls and transparency regarding financial reporting.

According to one source approximately $2.5 trillion in value can be unlocked by digitalization for the oil industry ecosystem. However, if cyber security is weak and SCADA and process controls systems are exposed lives may be lost and facilities may be irreparably damaged.

One view is that today’s Industrial Internet of Things (IIoT) organization has greater exposure than any Year 2000 problem may have caused. Shouldn’t society and investors have protections in place equal to Y2K and SOX?

There is precedent for holding organizational leadership accountable. Digitalization is a Board of Directors agenda item!

November 28, 2017