- The wise executive is neither tardy nor rushed. Sometimes he has no choice in the matter. Hopeless bosses may be forced out fast. Great leaders may be ambushed by fate. ... for those with the luxury of choosing when to go, timing is everything.
- Whether wicked or glorious, all leaders must steel themselves for the emotional shock of their abdication. This is the second rule and the most easily ignored. The unlucky will find that investors cheer.
- ... resolute executives are as unsentimental in their last 90 days as in their first. They retain the counsel of trusted outsiders and focus on the important things, especially themselves. They obey the third rule; to keep a beady eye on their compensation.
- Glory is just as important as treasure and so the fourth rule is to create a narrative about the future and past. Leaders must be seen to be leaving for another great and noble task, and must mythologise their legacy.
- The wise chief will grit his teeth and commit to the fifth rule: do not make big decisions in the last 90 days.
- Their legend secure and treasure-chest full, cunning leaders should obey a final rule: ensuring that the next occupant of the job does not outshine them.
Monday, October 19, 2015
Six rules of departure for CEOs
Schumpeter's article "The last 90 days" in The Economist "... [drafts] six rules to govern bosses' departures":
Sunday, October 18, 2015
Impact of education on individual beliefs
The Economist put me onto "Compulsory schooling laws and formation of beliefs: education, religion and superstition", by Nanci Mocan and Luiza Pogorelova, published in the National Bureau of Economic Research, October 2014. The magazine's article "Falling away" states:
"Just one extra year of schooling makes someone 10% less likely to attend a church, mosque or temple, pray alone or describe himself as religious, concludes a paper* published on October 6th that looks at the relationship between religiosity and the length of time spent in school. It uses changes in the compulsory school-leaving age in 11 European countries between 1960 and 1985 to tease out the impact of time spent in school on belief and practice among respondents to the European Social Survey, a long-running research project."
The paper is an interesting read from the perspective of the impacts of education on the transformation of societies for the future, how they behalf and how they will evolve culturally. This is of value to consumer driven organizations.
You can download the copy of the above mentioned paper here.
"Just one extra year of schooling makes someone 10% less likely to attend a church, mosque or temple, pray alone or describe himself as religious, concludes a paper* published on October 6th that looks at the relationship between religiosity and the length of time spent in school. It uses changes in the compulsory school-leaving age in 11 European countries between 1960 and 1985 to tease out the impact of time spent in school on belief and practice among respondents to the European Social Survey, a long-running research project."
The paper is an interesting read from the perspective of the impacts of education on the transformation of societies for the future, how they behalf and how they will evolve culturally. This is of value to consumer driven organizations.
You can download the copy of the above mentioned paper here.
Saturday, October 17, 2015
PE & Africa
"In the rich world private equity is often accused of enriching investors at the expense of the firms they buy. In Africa, the reverse seems to hold."
States The Economist in "Climbing aboard the African train". Private equity like any other for revenue investment looks to maximize value, hopefully both through productivity and top line growth. Turning a profit is an essential ingredient of all capitalist ventures. For Africa, it seems to have been a good thing so far:
"Consider the example of Umeme, which runs Uganda’s power-distribution grid. When Actis, a British investment firm, bought a stake, power losses consumed 40% of the electricity generated. By making some simple changes, such as replacing old insulators on its cables and reducing the theft of electricity by dismantling illegal connections, it has cut those losses in half."
Yet, the returns for the PE firms remains in low two digit percentages versus the factors they expect in the emerging markets:
"In the ten years to September 2014, South African private-equity firms, for instance, delivered returns that, although seemingly juicy at 18.5% a year (in local currency), were less than their investors would have earned simply by betting on stockmarkets.
Data on other firms and other countries are sparse, but industry insiders reckon that African deals had annual returns of only about 11% for the decade to 2012."
Read the complete article here.
States The Economist in "Climbing aboard the African train". Private equity like any other for revenue investment looks to maximize value, hopefully both through productivity and top line growth. Turning a profit is an essential ingredient of all capitalist ventures. For Africa, it seems to have been a good thing so far:
"Consider the example of Umeme, which runs Uganda’s power-distribution grid. When Actis, a British investment firm, bought a stake, power losses consumed 40% of the electricity generated. By making some simple changes, such as replacing old insulators on its cables and reducing the theft of electricity by dismantling illegal connections, it has cut those losses in half."
Yet, the returns for the PE firms remains in low two digit percentages versus the factors they expect in the emerging markets:
"In the ten years to September 2014, South African private-equity firms, for instance, delivered returns that, although seemingly juicy at 18.5% a year (in local currency), were less than their investors would have earned simply by betting on stockmarkets.
Data on other firms and other countries are sparse, but industry insiders reckon that African deals had annual returns of only about 11% for the decade to 2012."
Read the complete article here.
Saturday, June 20, 2015
Oil & Gas: Technology Opportunities
Please see an exceptional panel discussion highlighting the opportunities for technology and its applications in the oil and gas sector. I am confident that this was one of a handful of panel discussions to date that was candid, and cut out the noise to provide the facts.
This panel was conducted at TIECON 2015, which I moderated. The panelist were:
This panel was conducted at TIECON 2015, which I moderated. The panelist were:
- Issam Dairanieh (Managing Director, BP Ventures)
- Kemal Farid (Founder and CEO, Farid Ventures)
- Neal Dikeman (Senior Venture Principal, Shell Technology Ventures)
- Ricardo Angel (Managing Director, GE Ventures)
- Shantanu Agarwal (Partner, Energy Ventures)
The main topics covered as they apply to oil and gas included big data, predictive analytics, communications, internet of things, sensors, and processing.
Sunday, March 15, 2015
Creative destruction: Self-driving cars
Fast Company article "Self-Driving Cars Will Be The Biggest Auto Safety Innovation Ever" here states:
"… autonomous vehicles could reduce traffic accidents by 90%, according to a new report from McKinsey. In the process, our new robot cars will save us $190 billion in wrecked cars, broken bones, and other costs incurred by plowing into things with our current fleet of brain-driven cars."
Large corporations are incremental improvement bound. Let's remember that the self-driving car did not emerge from any of the large automotive companies. I am looking forward to the automotive future. It will disrupt the complete supply chain associated with automotive. Schumpeter's Creative Destruction will manifest itself here rather quickly.
"… autonomous vehicles could reduce traffic accidents by 90%, according to a new report from McKinsey. In the process, our new robot cars will save us $190 billion in wrecked cars, broken bones, and other costs incurred by plowing into things with our current fleet of brain-driven cars."
Large corporations are incremental improvement bound. Let's remember that the self-driving car did not emerge from any of the large automotive companies. I am looking forward to the automotive future. It will disrupt the complete supply chain associated with automotive. Schumpeter's Creative Destruction will manifest itself here rather quickly.
Thursday, March 12, 2015
Airlines: Customer service matters
US airlines when compared to their international rivals lag so significantly that one dares not put up a comparison chart. As an international traveler, I always opt for one of the airlines from the (Persian) Gulf countries, give it a try once to experience what air travel should be like.
The USA Today article "U.S. airlines contend Gulf rivals are subsidized unfairly" here discusses a report by the big three US Airlines that contends subsidies to the Gulf airlines to the tune of $42 billion. As a customer, I want good service and a comfortable flight, and I am willing to pay for it.
Just for fun, have a look at the 2014 World's Top 100 Airlines ratings on SKYTRAX here. First US airlines Delta shows up at no. 45. When you are so far down, simple subsidies are not the only reason.
Just for fun, have a look at the 2014 World's Top 100 Airlines ratings on SKYTRAX here. First US airlines Delta shows up at no. 45. When you are so far down, simple subsidies are not the only reason.
Wednesday, March 11, 2015
Nuclear power and the US
One educated as a Nuclear Engineer and having to leave it for its speed in implementation, design, regulatory oversight, lack of innovation, etc., the article on Fox Business "Delays for SC nuclear plant further pressure industry" here, further highlights how the US continues to lag the rest of the world.
Nuclear will be an essential ingredient in the success of energy for all. The article on WSJ details the various concerns here.
Nuclear will be an essential ingredient in the success of energy for all. The article on WSJ details the various concerns here.
Monday, March 9, 2015
Google and robotics
Friday, February 13, 2015
Opposing behaviors deliver reality?
Ms. Julie Beck of The Atlantic ponders - "Could it be that none of us are who we think we are?" in her article Faking it here.
The article is a packed full of study of studies, worth a read, reinforcing Dr. Dan Ariely's claim that we are Predictably Irrational beings.
The article is a packed full of study of studies, worth a read, reinforcing Dr. Dan Ariely's claim that we are Predictably Irrational beings.
Wednesday, February 11, 2015
Indirect pollution from EVs
The reality of electric vehicles is a bit stark today, though it will continuously improve with technological progress. A study by Dr. Christopher Tessuma, Dr. Jason Hill, and Dr. Julian Marshall of University of Minnesota published in the Proceedings of the National Academy of Sciences analyzes the complete life cycle of electric vehicles and compares it to more traditional ICE. Note that life cycle implies inclusion of all that went into making the EV to its daily use and charging.
The report's abstract states:
"Commonly considered strategies for reducing the environmental impact of light-duty transportation include using alternative fuels and improving vehicle fuel economy. We evaluate the air quality-related human health impacts of 10 such options, including the use of liquid biofuels, diesel, and compressed natural gas (CNG) in internal combustion engines; the use of electricity from a range of conventional and renewable sources to power electric vehicles (EVs); and the use of hybrid EV technology. Our approach combines spatially, temporally, and chemically detailed life cycle emission inventories; comprehensive, fine-scale state-of-the-science chemical transport modeling; and exposure, concentration–response, and economic health impact modeling for ozone (O3) and fine particulate matter (PM2.5). We find that powering vehicles with corn ethanol or with coal-based or “grid average” electricity increases monetized environmental health impacts by 80% or more relative to using conventional gasoline. Conversely, EVs powered by low-emitting electricity from natural gas, wind, water, or solar power reduce environmental health impacts by 50% or more. Consideration of potential climate change impacts alongside the human health outcomes described here further reinforces the environmental preferability of EVs powered by low-emitting electricity relative to gasoline vehicles."
The report's abstract states:
"Commonly considered strategies for reducing the environmental impact of light-duty transportation include using alternative fuels and improving vehicle fuel economy. We evaluate the air quality-related human health impacts of 10 such options, including the use of liquid biofuels, diesel, and compressed natural gas (CNG) in internal combustion engines; the use of electricity from a range of conventional and renewable sources to power electric vehicles (EVs); and the use of hybrid EV technology. Our approach combines spatially, temporally, and chemically detailed life cycle emission inventories; comprehensive, fine-scale state-of-the-science chemical transport modeling; and exposure, concentration–response, and economic health impact modeling for ozone (O3) and fine particulate matter (PM2.5). We find that powering vehicles with corn ethanol or with coal-based or “grid average” electricity increases monetized environmental health impacts by 80% or more relative to using conventional gasoline. Conversely, EVs powered by low-emitting electricity from natural gas, wind, water, or solar power reduce environmental health impacts by 50% or more. Consideration of potential climate change impacts alongside the human health outcomes described here further reinforces the environmental preferability of EVs powered by low-emitting electricity relative to gasoline vehicles."
"Air quality health impacts in the United States for each scenario: attributable increases in annual mortality (upper scale) and the resulting monetized health impacts (lower scale)."
legend - 03: Ozone, PM2.5: Fine particulate matter
Enjoy the complete analysis here.
Tuesday, February 10, 2015
Sunday, February 8, 2015
The Atlantic - "All advertising is manipulation"
Mr. Derek Thompson's article "Turning customers into cultists" in The Atlantic states: "… all advertising is manipulation".
What is a brand? "… to economists, the definition is simple: a brand is a signal, good or bad, that influences a consumer’s decision to buy a product."
This is an interesting article with a plethora of perspectives, yet leaving the amorphous concept brand as it is.
I believe that a brand is a singularity deposited in an individuals mind at a specific point in time in their lives based on their socio-demo-econo-graphic status, and cultural influences. Excellent examples exist among immigrants to the United States who have had brand images imprinted on their minds and when they can afford it, buy the imprint, no matter how lousy the product.
Marketing is the realization of the singularity with products focused on specific segments of the brand's competition field. Advertising is a means to market. According to the article:
"Advertising thrives in markets where consumers are essentially clueless, often because quality is hard to assess before you buy the product (medicine, mattresses, wine). But on sites like Amazon or eBay, and across social media, information from other sources—ratings, reviews, comments from friends—is abundant. We’re more likely to trust these signals precisely because they aren’t beamed from corporate headquarters."
What about the cult of brand's personality:
"In 1984, the British sociologist Eileen Barker published The Making of a Moonie, a seven-year investigation of the Unification Church, based on interviews with members of one of America’s most popular cults. While many cults are portrayed as preying on the poor and uneducated, and particularly people from broken homes, Barker discovered that Moonies tended to be middle-class, with college degrees and stable families. The cult inculcated new members through simple techniques: weekend retreats, deep conversations, shared meals, and, most seductive, an environment of love and support."
And regarding Apple:
"From its famous hammer-smashing “1984” ad against IBM to its 1998 commercial “Crazy Ones,” Apple has been deliberate in reinforcing an us-against-the-world ethos. The fact that it has preserved its devoted following while becoming larger than its opponents “shows that culting is useful, even when it’s misleading,” Escalas says."
I believe the answer is well discovered and articulated by Mr. Douglas Atkin, author of The Culting of Brands:
"“The common belief is that people join cults to conform,” Atkin wrote. “Actually, the very opposite is true. They join to become more individual.”"
What other brands in the world have a cult following, empowering the individual to feel … "empowered"!?
Enjoy the article here.
What is a brand? "… to economists, the definition is simple: a brand is a signal, good or bad, that influences a consumer’s decision to buy a product."
This is an interesting article with a plethora of perspectives, yet leaving the amorphous concept brand as it is.
I believe that a brand is a singularity deposited in an individuals mind at a specific point in time in their lives based on their socio-demo-econo-graphic status, and cultural influences. Excellent examples exist among immigrants to the United States who have had brand images imprinted on their minds and when they can afford it, buy the imprint, no matter how lousy the product.
Marketing is the realization of the singularity with products focused on specific segments of the brand's competition field. Advertising is a means to market. According to the article:
"Advertising thrives in markets where consumers are essentially clueless, often because quality is hard to assess before you buy the product (medicine, mattresses, wine). But on sites like Amazon or eBay, and across social media, information from other sources—ratings, reviews, comments from friends—is abundant. We’re more likely to trust these signals precisely because they aren’t beamed from corporate headquarters."
What about the cult of brand's personality:
"In 1984, the British sociologist Eileen Barker published The Making of a Moonie, a seven-year investigation of the Unification Church, based on interviews with members of one of America’s most popular cults. While many cults are portrayed as preying on the poor and uneducated, and particularly people from broken homes, Barker discovered that Moonies tended to be middle-class, with college degrees and stable families. The cult inculcated new members through simple techniques: weekend retreats, deep conversations, shared meals, and, most seductive, an environment of love and support."
And regarding Apple:
"From its famous hammer-smashing “1984” ad against IBM to its 1998 commercial “Crazy Ones,” Apple has been deliberate in reinforcing an us-against-the-world ethos. The fact that it has preserved its devoted following while becoming larger than its opponents “shows that culting is useful, even when it’s misleading,” Escalas says."
I believe the answer is well discovered and articulated by Mr. Douglas Atkin, author of The Culting of Brands:
"“The common belief is that people join cults to conform,” Atkin wrote. “Actually, the very opposite is true. They join to become more individual.”"
What other brands in the world have a cult following, empowering the individual to feel … "empowered"!?
Enjoy the article here.
Subscribe to:
Posts (Atom)