Year: 2008

A bi-cultural executive

She might have three selves, but she also has two different styles. The French one, which loves these abstract ideas of freedom and the future. And the American one, with its management clichés of teamwork and listening. The two make an odd mixture.

Perhaps she herself is a miniature version of GE in France, which she says takes 20 per cent of its culture from the US and 80 per cent from France.

via FT.com

Online search has narrowing effect

Indexes and tables of contents provide a context, giving a broader snapshot of the field at a given time. And after consulting them, the researcher must make a considered decision to take the next step.

By contrast, in online searches, the researcher tends to follow hyperlink to hyperlink, in a journey that resembles “a plunge down a rabbit hole,” in the words of Robert Berring, a law professor at the University of California at Berkeley who has studied the impact of electronic media. “If you get to an index, a table of contents, you see the environment that surrounds it. In the culture of paper, a lot of these signals are important.”

via Boston.com

I.O.U.S.A. or Don’t buy stuff you cannot afford

I.O.U.S.A. is a documentary that explains the national debt. It has been called the Inconvenient Truth of fiscal realities:

The CEPR disagrees with the documentary’s numbers.

David Walker, the former US Comptroller General, on 60 Minutes:

Walker is currently the President of a foundation.

Cultures must be seen in their wider context

A great introduction to my Spring 2009 cross-cultural communication class from UNFPA‘s State of world population 2008:

Culture – inherited patterns of shared meanings and common understandings – influences how people manage their lives, and provides the lens through which they interpret their society. Cultures affect how people think and act; but they do not produce uniformity of thought or behaviour. 

Cultures must be seen in their wider context: They influence and are influenced by external circumstances and change in response. They are not static; people are continuously involved in reshaping them, although some aspects of culture continue to influence choices and lifestyles for very long periods. 

Cultural customs, norms, behaviours and attitudes are as varied as they are elusive and dynamic. It is risky to generalize, and it is particularly dangerous to judge one culture by the norms and values of another. Such over-simplification can lead to the assumption that every member of a culture thinks the same way. This is not only a mistaken perception but ignores one of the drivers of cultural change, which is multiple expressions of internal resistance, out of which transitions emerge. The movement towards gender equality is a good example of this process at work. 

Appeals for cultural sensitivity and engagement are sometimes wrongly interpreted as acceptance of harmful traditional practices, or a way of making excuses for non-compliance with universal human rights. This is far from the case – such relativism provides no basis for action and produces only stalemate and frustration. Values and practices that infringe upon human rights can be found in all cultures. Culturally sensitive approaches determine what makes sense to people and work with that knowledge. Embracing cultural realities can reveal the most effective ways to challenge harmful cultural practices and strengthen positive ones.

Evidence-Based Management

Five Principles of EBM:

1. Face the hard facts, and build a culture in which people are encouraged to tell the truth, even if it is unpleasant

2. Be committed to “fact based” decision making — which means being committed to getting the best evidence and using it to guide actions

3. Treat your organization as an unfinished prototype — encourage experimentation and learning by doing

4. Look for the risks and drawbacks in what people recommend — even the best medicine has side effects

5. Avoid basing decisions on untested but strongly held beliefs, what you have done in the past, or on uncritical “benchmarking” of what winners do

When “a perfect storm” is actually a failure of leadership

A bit of unsolicited advice to business executives trying to explain why their company or their industry is suddenly in the soup:

Please spare us the “perfect storm” metaphor.

It’s hackneyed, for starters. It doesn’t square with the facts. And for people who fancy themselves leaders, it’s downright unbecoming.

The reason the perfect storm is such an appealing metaphor for these shipwrecked captains of industry is that it appears to let them off the hook. After all, who can blame you if the ship goes down in one of those freak, once-in-a-century storms that result when three weather systems collide? It’s an act of nature that nobody could have predicted — or so the story goes. (…)

The first thing to understand about the perfect-storm defense is that these guys actually buy into this nonsense. (…)  The second thing to understand is that, fundamentally, they’re wrong. (…)

What capsized the economy was not a perfect storm but a widespread failure of business leadership — a failure that is only compounded when executives refuse to take responsibility for their misjudgments and apologize.

via Steven Pearlstein at The Washington Post.

 

Merrill’s Thain wants a $10mn bonus: What do you think?

Merrill Lynch & Co Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the battered company’s compensation committee is resisting his request. (…)

Thain has said he deserves a bonus because he helped avert what could have been a much larger crisis at the firm, people familiar with his thinking told the WSJ.

Members of Merrill’s compensation committee agree with Thain that the takeover is in shareholders’ best interest, but believe it would be foolish to ignore strong public sentiment against large compensation packages, the paper said, citing people familiar with their thinking.

Committee members are also weighing the fact that other Wall Street firms, including Goldman Sachs Group Inc, which did better than Merrill this year, are not giving out bonuses to top executives, the paper said.

via  Yahoo! News.

The stock market: How bad is it?

On this chart each block represents a year and each column represents a range of return on the S&P index. Over on the right side are those lucky years where the index has soared upward from 50-60%. In the middle are the more typical years, where the market has risen less than 10%.

That little box on the far left? Yeah, that’s this year.

via Daily Kos.

Ikea’s solution to Detroit’s problems

Ben Bernanke and the financial crisis

A long article at The New Yorker