Energy (It's on my mind)

During the US primary the topic of energy was front-and-center.  With gas prices hitting all time highs during the summer of 2008, it did not take our politicians long to focus our collective attention on the subject of high gases prices and our dependence on oil.  Now as Thanksgiving 2008 approaches gas is hovering around two dollars per gallon (vs four!). I suspect our collective attention may focus on other topics, but maybe not...

Obama has made it clear during the US primary that energy policy reform will be front-and-center during the early part of his administration.  I suspect that if gas prices stay around two dollars per gallon, Obama may experience some level of push-back from other politicians who may not want to enact radical change to address the challenge.  For now, I'm hoping for the best, and that our elected leaders will do what the past elected leaders have not been able to  do, that is, design and implement a comprehensive energy policy to reduce US dependency on imported oil and radically diversify our source for energy for our transportation needs.  And for the record, when I'm suggesting radical change, this is not incremental change such as 10-15% increases in fuel efficiency, but change which would diversify the monopoly oil has on our transportation energy needs, 100 % improvement on efficiency, and placing a cost on environmental affects which comes with using fossil fuels.

The challenge is big and if anyone says otherwise, they either do not understand the scale of the challenge or they are grossly over-simplifying the complexity of the challenge to advance an agenda. 

Some ideas to keep in mind.  Based on 2007 statistics from the Energy Information Administration (www.eia.doe.gov), 96% of the energy for transportation needs in the US come from oil.  US is the greatest consumers of oil, and as we all know, we cannot domestically produce all of our need (even if we drill-baby-drill).  We import 58% to satisfy our collective thirst.  The top four countries we import from are Canada, Saudi Arabia, Venezuela and Mexico, which represent 63% of the oil imports.  

I suspect that most of us would agree that this addiction to oil is not good.  Independent of the topics related to oil and the environment, we are sole sourced with oil for our transportation needs and this places us in an extremely vulnerable position.

Assuming we want to address this issue, that is, we have the sustainable political will, in addition to industry and citizenry pulling their respective weight, this is a challenge we can address.  Keeping in mind that it has taken us more than a century to get to this point of dependency.  It will take time to unwind the dependency, not a century, but I would suspect 15-20 years, hence the great importance of us having the sustainable will to address the challenge.

There are a number of "quivers" in our bag to help us address the challenge from shifting our reliance from oil to other solutions, be it, electricity, natural gas, and conservation.  

There has been a lot of discussion concerning the idea of leveraging electricity to play an important role for our transportation energy needs.  We can  make electricity from many resources including natural gas, coal, nuclear and renewable energy.  Coal represents 51 %  and nuclear represents 21% of US electricity generation.  We may want to continue to look at coal and nuclear in addition to renewable sources.  Keep in mind that the US posses the largest coal reserves in the world, and we have great nuclear talent and knowledge.  Obviously there are challenges with coal and nuclear, but we should pursue an open and fair discussion on these options.  In the end, the two sources may not work, but there are tremendous advantages leveraging the two sources.  My hope is we have a constructive debate on the two sources vs. getting caught up in demagoguery and fear. 

One last thought.  Conservation will play an import role, especially for what we can do now.  Obviously the long term solution will require more than conservation, but the biggest near term impact is conservation.  For the past three  years, oil consumption in the US has decreased.  This is largely due to conservation and efficiency efforts.  Here is a thought on conservation.  What we can do today to help conserve oil is the simple act of slowing down.  Consumer Reports conducted a test and determined that driving at 65 mph vs. 75 mph results in about 16 % improved gas mileage at highway speeds.  If you are driving about 200 miles per tank for highway driving, slowing down will save about one gallon of gas per tank.  Million of us saving a gallon adds up! 

No question, the energy challenge facing us is big.  All will play a part to address the challenge (government, industry and citizen).  Though gas prices are falling, my fingers are crossed that our leaders will have the will to radically address this issue.  Until then, let's drive a little slower, and if needed, remind our leaders to do the right thing.

Roger Mehta

A Disruptive Technology--Google Docs

I just finished a great book titled "The Innovator's Dilemma" by Clayton Christensen.  The book addresses the challenge facing established companies to stay on top of their industries when faced with certain technologies which disruptive their business, or worse, destroy their business.  Christensen outlines a number of examples of dominating companies ruined due to "disruptive technology".  Christensen outlines the common elements of disruptive technology, how to spot disruptive technology, and advice on how to navigate through a disruptive technology shift.

My goal is to summarize the common elements which make up disruptive technology, and to propose that "Google Docs" is a disruptive technology which represents an amazing risk to Microsoft.  

Christensen explains in his book that disruptive technologies initially establish products which underperform when compared to the established product offered by the dominating company. Christensen also writes that disruptive technologies attract a small customer base which see value in the product.  Another very important idea concerning disruptive technologies is the rate of innovation relative to market need.  Another way to think of this, disruptive technologies get better-and-better but the performance needs of the mainstream customer stays relatively static.  So, as disruptive technologies improve, disruptive technologies' features match customer expectation.

Here is an interesting example.  "Google Docs" is an application which includes word processing features, in addition to features to develop spreadsheets and presentations.  Google Docs is an alternative to Microsoft's Word, Excel and PowerPoint.  Google Docs' feature set is small when compared to Microsoft's offering, BUT, Google Docs is FREE and Google is improving and innovating quickly.  I'm most familiar with the word processing application.  There are a number of shortcomings (one is not being able to view your document easily before you print.  Also, the number of fonts are limited compared to Microsoft Word). Despite the short comings of Google Docs, it is an application I can see folks using who don't want to purchase Microsoft Word at $200.  If you are going to use a word processor for general report writing, then buying Microsoft Word may not make sense.   For example, most students word processing needs can be satisfied by Google Docs. I would not be surprised that in the near future, the "basic" functionality we see in Microsoft Word will be developed in Google Docs  (the ability to easily review a document before printing, more fonts, interoperability with other applications).  And as Christensen has pointed out, technology innovates at a rate faster than market needs, so Google Docs has the great potential of "innovating up" to what the mainstream market expects.  

An idea to keep in mind.  Microsoft's "Business Division" revenue for FY2008 was $20 billion ,about a third of the companies total revenue.  Business Division includes revenue from Microsoft Word, Excel and PowerPoint.  I'm not suggesting that Google Docs in the near term is going to affect this revenue stream, but Google Docs is "knocking" on the door, and when Google is knocking on the door's of their competitors, it is generally not a friendly visit.  Also, Google Docs is operating system (OS) independent so in addition to not needing to purchase Microsoft Word, Excel and Powerpoint, there will be no need to purchase Microsoft's OS (oh boy...).

Check out Christensen's book, a very interesting read.  

Roger Mehta

The Internet Browser (Executive Summary)

It has been almost 15 years since Netscape introduced the first commercially successful Internet browser called Navigator.  During the last 15 years, Netscape has vanished from the Internet scene and companies such as Google and Facebook rule the roost (and are managed by folks who were in middle school or  high school when Netscape was king!).   No question, a lot has changed in 15 years, but the underlining understanding of the browser has not changed.  

The browser is the ubiquitous software application we use to interface with the Internet.  You may be using Microsoft's Internet Explorer (most used browser application) or Mozilla's Firefox, Apple's Safri or Google's relatively new browser application called Chrome.  They all do the same basic function, which is to allow us to access the power of the Internet.  

The browser application allows us to view websites, photos, movies and play music.  For example, the browser application is designed to process software files which contain the data which represents photos.  A very common photo software file is "JPEG".  The browser application is designed to process or "read" the JPEG software file and then display the photo on your screen.  

The browser application is also designed to allow us to add other programs to expand the usefulness of the browser application.  The add-on programs are known  as plug-ins.  Common plug-ins are Adobe's Acrobate and Adobe's Flash.  Adobe's Acrobate allows us to view documents written in a format called "PDF" and Adobe's Flash allows us to view animation and video.  In short, the continuous development of plug-ins expands the functionality of the browser application.   

Another important function of the software browser is the ability to interpret a computer language called Hypertext Markup Language (HTML).  When we are viewing a page from the Internet, that page is written in HTML, which the browser interprets and then displays on the screen.  The browser also understands a protocol called Hypertext Transfer Protocol (HTTP). Since the browser understands HTTP, the protocol allows the browser to communicate with other "machines" which are part of the Internet such as other computers,servers and printers. 

A lot has changed since Netscape first introduced its browser application Navigator, but the underlying technology such as plug-ins, HTML and HTTP is still widely used by common browser applications we use today.

Raj Mehta

Career Management (Not easy for most)

I'm reading a great biography about Dwight David Eisenhower ("Ike") by Michael Korda. Ike was the supreme commander of the Allied Forces during World War II. Ike commanded the largest force of men and women in the history of warfare. In addition to his service during World War II, Ike was a two-term US president. Though the intent of the biography is not to be a book about career management, the biography does provide great insight into Ike's career and provides an example of how to manage one's career.

Ike knew very early what he wanted to do with his career. In the biography, Korda presents a story of Ike taking his freshman oath as a West Point cadet. The oath stuck Ike "deep in his heart and soul." At that moment, Ike found his calling. I suspect that most of us during our freshman year in college did not have a clear vision of our future career, but knowing what we what from our career is essential in managing it. Coming up with the answer may be a challenge. If you are one of the lucky ones like Ike, the answer will come very early in your life. But for most, discovering the answer may take time. For most, 5-10 years into your career, more for some of us. Discuss the topic with your close allies such as parents, friends and teachers. Understand that the answer may not come easily, but knowing to ask the question is half the effort. With effort and time the answer will come.

The second element in managing your career is identifying mentors to help provide guidance and objective feedback. Ike had three great mentors in his career-- General John Pershing, General Douglas MacArthur, and General George Marshall. One could only wish for stellar mentors like these! Ike's mentors were willing to provide guidance and feedback, and most importantly, Ike was open to learning from them. In addition, he had a keen eye for searching out knowledge and ideas to better himself. The last element is the obvious one-- work hard. As the saying goes, "luck comes to the prepared." Ike is an example of hard work and preparation, and continuing to work hard though his effort is not immediately recognized. Though Ike would have performed his work in a vacuum, Ike craved recognition for his effort. Though Ike thought no one was noticing his early efforts, folks were watching him. A lesson to us: always keep in mind that great talent does not go unnoticed too long. With time, cream always rises to the top.

Managing your career is no easy task, but there are common elements which make up successful career management as exemplified by Ike's career. Know what you want; be on the lookout for mentors (and in a frame of mind to accept constructive feedback); work hard (real hard).

Raj

Contrain Supply and Innovate (or die)

Innovate or die. In nature, the axiom typically plays out in glacier time. But in business, you are "top of the world" one moment, and before you know it, you are the guy who mistook the black-tie event for a costume party (hard to hide when you are dressed up as a woman with a two day old beard...).

Constraining supply is a method to spark innovation. Here is an example to consider. During a recent project we focused on reducing the cost to process client RFQ (requests for quotes) associated to a service which was very technical in nature. On average, we were spending about US$100 to process a RFQ. But there was a challenge beyond fixing the problem. Though the sales team was on-board with the idea of reducing RFQ costs, the team was reluctant to fundamentally change the process status-quo. The sales team preferred the as-is process due to familiarity and the natural reluctance to change. To break the log-jam, we proposed to constrain an important element of the process to force innovation. The element we constrained was the time invested by a Sales Engineer to support the RFQ process. The original processes included a full time Sales Engineer plus time from senior technical staff. We reassigned the Sales Engineer role to no longer support the RFQ process, which forced innovation. With the assistance of senior technical staff, tools were developed to empower the sales team to generate quotes with no or very little technical support. With the Sales Engineer role out, the sales team had incentive to innovate since the Sales Engineer was not available to support quote development. With the tools developed by senior engineering staff, and more importantly, the tools, training, and incentative by the salesteam to develop quotes, the end result was a 50 % reduction in RFQ costs and 30 % increase in RFQ turnaround time.

No question, companies must innovate to survey (or die). Constraining the supply of a critical element of the process will force innovation.

--Raj

Recruiting Talent - Job One (or at least Job Two)

Working for a small company (less than $50 million in revenue) has a lot of benefits. I know since I work for one. One of the benefits is a less bureaucratic environment to navigate through to get the job done. Also, a small company offers a workplace which is more like an addition to my family vs. a place to work where I punch in and punch out. Though there are benefits for working for a small company, one area which is a big challenge is recruiting talent. Small companies are at a disadvantage when recruiting talent. Many times I'm "competing" with Fortune 1000 companies. Though the pay and benefits may match my "rivals", in general, talent gravitates to large, well-known companies. There may be many reasons for this, such as, a perception that bigger companies are "safer" as it relates to employment or the prestige that comes from working for a "name brand" company. In the end, one of my challenges of leading a team for a small company is recruiting talent. If you are managing a team, recruiting talent is "job one" or a close second. Before a product can be sold, assembled, shipped and invoiced, talent is required to sell it, make it, ship it and invoice it . Keeping an eye out for talent is important. Here are a couple of ideas which may be helpful. I work with my HR team to schedule at least one interview each month for a position of interest though an immediate need for talent may not be present. Having a steady-stream of talent to interview and consider gives me an idea of the type of talent out there, and provides me a leg-up if I'm faced with a hiring opportunity. A second idea is joining professional organizations and attending meetings and symposium associated with your business. This allows you the opportunity to keep an eye-out for talent you may want to recruit, in addition to building-up your professional network. Keeping your fingers on the "pulse of talent" is essential when managing a team, and if not "Job One" then it's "Job Two."

Raj

New Hire (First Week is Critical)

It's Monday morning and a new teammate is joining your department. She reports to you and will manage a very important team under your scope. IT has been contacted to setup a laptop, software, phone, and HR has a number of orientation meetings setup during the week. But have you thought about sitting with your new hire during the first week and detailing the major "anatomy" of the position and your expectations? The first week is critical to help set tone, and share thoughts and your vision, which will be referenced to as the teammate get her arms around the new assignment. For your new hire, her continued success boils down to four very important functions.
(1) Project Management. Remind your new hire that what got her to this next step in her career is her skills to manage a number of actions and priorities, and the interpersonal skills to work with all stakeholders to get the job done. Her project management skills are essential for her present assignment.
(2) Managerial Skills. Solid managerial skills are essential for hiring, growing and sustaining staff . Make clear that one of the underpinnings of success will come from managing, recruiting, inspiring and retaining her talent.
(3) Strategic Leadership. As your new manager gains operational control of her department, eventually she will gain enough experience to think strategically (or better, will bring this insight on day-one). Point out that she has the authority and responsibility to help develop the department's charter and future development path.
(4) Department "Face." Point out that she is the "face" of the department. Her tone and action set the stage concerning how her team will act and work. Also, remind her that she is the department representative so how your new manager interacts during intra-department meetings will reflect directly on her department.

The first week of any new job is challenging. Sitting down with your new hire during the first week and identifying the anatomy of the new position will shorten the time required to get her hands around the new assignment and and shorten the time to success.

--Raj