What CEOs want

Quickly: IT/BT executives should ensure that their goals align with the CEO's.

Forrester's IT Forum was in Las Vegas last week. Great time, with over 1,500 clients and sponsors on-site. Highlights for me were John Chambers of Cisco jumping off the stage into the audience to sell his vision and an amazingly elegant dinner for over 1,000 at the very cool Tao Club in the Venetian.

I kicked off the proceedings with a ten minute talk entitled "CEO Success Imperatives." Whenever I meet with a CEO I ask a simple question: "What do you, as the CEO, have to do to be successful?" Here are the seven themes that emerged from my CEO research:

1) Getting, keeping, building the best people. "I hire 15 people every hour. I want the best."
2) Engendering collaboration. "If HP could only harness the knowledge of HP."
3) Reaching global markets
4) Increasing profit. "HP makes $12 million per hour but spends $11 million per hour. I want to change that proportion."
5) Building a positive culture. "I want a company culture that is viewed positively from the inside and from the outside."
6) Customers, customers, customers
7) Driving innovation. "I want to figure out how to break linearity."

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Fading broadcasters

Tim_robbins_2Quickly: The Internet will squeeze broadcasters into a slim niche.

I've often wondered whatever happened to two parts of public discourse: 1) eloquent speeches, and 2) truth-telling. I have been helping my son study American history and the other night we read two famous statements from the debates surrounding the 1850 Compromise: John C. Calhoun's defense of the South and Daniel Webster's response. Both men spoke in passionate but reasoned phrases -- one threatening secession, the other advocating union. Marvelous reading.

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Reforming Microsoft

Microsoft_logo_2  Quickly: It's good for Microsoft that it didn't buy Yahoo -- now it has to reform itself.

Steve Ballmer unintentionally dodged a bullet today when the Yahoo/Microsoft deal collapsed. Yahoo + Microsoft would have been a disaster -- the best and the brightest from Yahoo would have gone to Google, the culture clash would have been destructive, it would have put Microsoft back in the sights of the regulators. And Yahoo wouldn't have helped Microsoft with its biggest task at hand -- adapting to the emerging executable Internet software model.

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A favorite book: The Logic of Failure

The_logic_of_failure_2If you're in the business of running a company, a large team, an acquisition, or a data center, check out this book. The full title is: The Logic of Failure: Recognizing and Avoiding Error in Complex Situations. It's written by the German psychologist Dietrich Dorner.

The thesis: "...we have been turned loose in the industrial age equipped with the brain of prehistoric times." Simply stated, most human beings are terrible at managing complex systems. Dorner's students run a model of a small fictitious African village -- changing variables like cattle stocks, food stores, arable land. Invariably the students kill off the entire "population" through their miss-planning

As it turns out, good managers of complex systems showed common approaches:

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Confessions of a two month CEO blogger

At the Forrester Marketing Forum in LA, held on April 8-9, I gave a short presentation on my first two months of blogging. Many of the marketing executives in attendance are urging their CEOs to blog -- I thought my early impressions might prepare them for CEO reactions. Here goes:

Number One: "No one is reading my blog -- my out-sized ego can't take it." Prepare your CEO for a slow audience build.

Number Two: "Once a week? I'm too busy trying to run the company to do this." Yes, one post a week may only take a few hours -- but "...getting into the conversation" -- reading and commenting at other blogs -- what all experienced bloggers urge you to do, will double the time required.

Number Three: "The technology sucks." Blogging technology is shockingly crude. Get ready to give your CEO tech support -- even around the fundamentals like getting a picture into a post.

Number Four: "I'm not getting anything back." This is the corrollary to Number One. I often feel like I'm on a one-way phone conversation -- I talk, but there's no one listening. I lust for value-filled comments that will improve and drive my ideas. With time, they will come.

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The China Bubble

Chineseflag Quickly:  Conventional wisdom glosses over China's limitations and problems.

Roger Cohen's starry-eyed China tribute in the New York Times is emblematic of the runaway euphoria surrounding that emerging economy. Threat to America…threat to Asia…ready to overtake Europe in the next 10 years…exploding – the gold rush place to be...450 million cell phones…becoming highly creative and innovative…the new model…the future.

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Not an IT/BT recession

Img_0773 I was at a Forrester event on Wednesday with 50 $1B+ CIOs and Enterprise Architects. When I asked the group whether they thought we were in a recession, three fifth's said "yes." Then I asked whether they thought their tech budgets would be cut this year-- one fourth said "yes." And one smart ass CIO said, "Hey my budget always gets cut -- nothing will be different about this year."

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Advertising's Limits

Quickly:  Advertising's limitations will put a lid on the "free" economy.

Chris Anderson's article in the latest issue of Wired claims that Web economics will drive almost all content to be "free," funded by advertising, cross-subsidies, etc. While this is an obvious conclusion given Google's run, advertising has its limits:

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IT saves GM?

Gm_2 Here's the lightning account of what's happened at General Motors over the last ten years. The company lead all automakers in cost. Even though its IT was outsourced, it ignominiously sported the most expensive IT costs per car. Enter Ralph Szygenda as CIO with the charter to fix the mess. Ralph (along with then CEO Roger Smith) realized that they had to change an out-of-control decentralized culture in which every brand did things their own way. So Ralph didn't focus on tech -- he centered on standardizing process -- designing, engineering, manufacturing, and selling vehicles the same way, all over the world.  The results have been amazing: costs down, quality up, speed increased. With a single process language the company can now design a car in China and build it in Detroit. It has gone from total decentralization to global in the space of a decade -- an amazing achievement for an organization of its size.

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Social Sigma

Under Six Sigma, companies gradually improve process to enhance the quality of their products. With Social Sigma they use feedback from social networks to improve products.

Two great examples.

1) Credit Mutuel, the second largest retail bank in France, has been drafting its customers into product improvement through a program called, Si j'etais banquier -- "If I was a banker." The bank has recorded more than 50,000 suggestions, e.g., "If I was the banker, I'd explain the fees in clear terms." and recently let customers vote on the top 30.

2) GM's Fast Lane blog carries some amazingly straight-up conversations about GM's cars and trucks. Bob Lutz, the company's chief designer, uses the blog to hear firsthand from customers about design, quality, and product problems.

Product design and R&D will become much more of a continuous conversation -- not a black box, "Here it is!" process. Products will be revised under much tighter schedules, with obvious product errors corrected in new versions.

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