Visiting The Sins of The Fathers

Everyone was waiting for the big news this week out of the EU on how they were going to bail out their troubled economies--way too many: Greece, Spain, Portugal, Italy, Ireland...and more.

Their debt is through the roof--Greece is at 164% of it GDP and Italy is saddled with 1.9 trillion euros with more than 200 billion of it coming due next year.

Unemployment is soaring...with Greek unemployment of 16.7%, topped by Spain's at 21.5%.

Economies are grinding to a halt: "Euro-zone economic data point to gloomy year-end...0.2% latest quarterly growth" (Wall Street Journal, 29-30 October 2011)

So news this week of a yet bigger (much bigger 4x or 5x) bailout fund of $1.4 trillion to backstop the losses, while sending the stock market soaring, left the pundits a little more than skeptical.

Why? Because where did the losses go...did they just disappear or is this a thoroughly massive shell game where the losses are spinning faster and faster under the shells of economic protectionism until they disappear altogether under the slight of hand of ministry of finance magicians?

I thought to myself this week--am I missing something? I wrote a friend--this guy is a genius--top of the class type, CPA, MBA and asked what he thought of the bailout? He too was baffled and said somebody just took a "50% haircut" referring to massive number of Greek bondholders who just took a huge loss--how is that a good thing?

And I thought what about the rest of the losses yet to be realized in the $1.4 trillion European Financial Stability Fund (EFSF)...by naming it "stability," does it actually make people feel more secure, better?

Then came the reports later this week--"Doubts rise about EU deal"--that the financial rescue plan is short on details, and as we all know "the devil is in the details." Moreover, it's just a plan--that's the easy part--words are cheap! The real test lies in whether the financial rescuers can actually execute this time or will we be back at the drawing board in 6 months time again?

Then I thought of the saying from the Torah (Bible)--Exodus 34:7 that G-d "visits the sins of the fathers on the children." Not in a malevolent way, but in an almost natural way--our actions have consequences.

While not limited to any individual, country, or continent, when we live beyond our means--when greed and gluttony surpass our ability to control our appetites for more, then a bubble builds and down the road, it eventually bursts--whether real estate, the dot com boom, stocks, commodities, or even tulips in the 17th century!

As we all know deep down, no shell game can go on forever--the hands tire, the players become more astute, and most importantly, the excesses of the past must be paid up--so that the next generation can eventually go on to a more stable and brighter future.

Both sides of the spectrum, the Tea Party and the Occupy Wall Street protesters know the same economic reckoning is coming--and even though not everyone can articulate the rising doubt and fear, we go toward resolution, hand-in-hand together.

(Source Picture: here and here)

Visiting The Sins of The Fathers

Technology Anonymous

Alcoholics Anonymous is famous for their program to help people attain and maintain sobriety.

With the latest addiction being everything technology, there is now a movement toward "technology detox" or the AA equivalent, Technology Anonymous.

I remember reading months ago about people so addicted to the Internet and online video games that they literally had to be institutionalized to get them to eat, sleep, and return to some sort of normal life again.

Apparently, technology taken to the extreme can be no less an addiction than smoking, drinking, of fooling around.

And there is even a Facebook page for Internet and Technology Addiction Anonymous (ITAA).

I've recently even heard of challenges for people to turn off their technology for even 24 hours; apparently this is a tough thing even for just that one day--wonder if you can do it?

The Wall Street Journal (5 July 2011) reported on someone who "signed up for a special [vacation] package called "digital detox," [that] promised a 15% discount if you agree to leave your digital devices behind or surrender them at check in."

The message is clear that people "need a push to take a break from their screens."

Here are brief some statistics from the WSJ on technology addiction even while on vacation:

- 79% expect to remain connected for all or some of the time on their next vacation.

- 68% (up from 58% in 2010) say they will check email while on vacation--daily or more frequently--for work.

- 33% admitted to hiding from friends and family to check email on vacation.

- Also, 33% check email on vacation while engaged in fast-paced activities such as skiing, biking, and horseback riding.

For people routinely checking email as many as 50-100 times a day, going on vacation and leaving technology behind can be a real shock to our social computing systems. Should I even mention the possibility of not logging unto Facebook, Twitter, YouTube, Flikr, etc. I see people convulsing and going into withdrawal just at the thought.

So what is this technology addiction we are all on? There's no nicotine or alcohol or testosterone involved (except in some extreme video games, maybe).

Incredibly, for many technology is the first thing we check in the morning and last before we close our eyes at night.

It even lays on the night table right next to us--our spouse on one side and our smartphone on the other. Which do you cuddle with more?

It's scary--technology is an addiction that is not physical, but rather emotional.

It is the thrill of who is calling, emailing, texting, friending, or following us and what opportunities will it bring.

Like Vegas or a lottery ticket...technology holds for us the possibility of love, friendships, sexual encounters, new job opportunities, fame, fortune, travel, and so on.

There is no limit, because technology is global and unbridled and so is our ambition, desires, hopes, and even some greed.

(Source Photo: here)

Technology Anonymous

The Search For Servant Leadership in A Chilean Mine

The Search For Servant Leadership in A Chilean Mine

I’ve been following the story this week about the 33 miners trapped half a mile below the surface in the collapsed mine in Chile.

The story of the miners survival is incredible, but so too are the implications of corporate greed and the neglect of the workers safety and how we treat people as objects rather than human beings.

33 people are stuck in a space approximately 500 square feet for 18 days until a 2.3 inch drill hole was used to discover their whereabouts this week.

The miners had lost on average 22 pounds each and were on rationed peaches, milk, tuna, and crackers every other day.

The pictures of the miners and the notes of love and hope that emerged from below the earth’s crust were truly inspiring, despite the way that they got trapped to begin with.

Yet, the miners now have to wait approximately 4 months for a rescue tunnel 26 inches wide to be completed to pull them to safety.

The fear, panic and duress of being trapped 2300 feet down in 95-degree heat in close quarters for so long is something government officials, psychologists, and family members are very concerned about. They have even reached out to NASA to help them deal with the effects of the prolonged isolation.

Amazingly, when we think about how technology could help in this situation, it is not necessarily a “super-duper” drill able to dig them out in hours or minutes that is the focus here or a transporter able to beam the miners up the surface in seconds, but rather a simple tool like a ladder placed near the ventilation shaft (as was supposed to have been for safety purposes) would have enabled the miners to escape to the surface.

Now instead of the mining company having done the right thing for its workers to begin with, they are now facing a lawsuit from the families of the trapped miners and potentially bankruptcy.

This situation is reminiscent of other companies that put their profits before their workers, like we saw recently with BP that didn’t have a simple safety shut-off valve on the leaking oil well, and now they are funding a $20 billion escrow account to settle claims from the Gulf Coast oil disaster.

Plain and simple, it does not pay to skimp on worker safety.

More than that, people are not only our most important asset—as has become cliché to say, but the whole point of our interactions at work is to treat each other right.

Of course, we need and want to be productive, to improve things, to reengineer business processes, enable them with new technologies, and leave the world better from our work, but to me the true test for us as human beings is to make these contributions to our organizations and missions and at the same time not lose our basic humanity.

If the cost of an improvement or promotion is some very real bodies that we must climb over to get there, then I say we are failing the true test before us.

We can make the same gains and more by treating people with kindness and compassion—the way we would want to be treated.

Let’s not deny anyone a ladder or safety valve or even in the smallest ways mistreat our employees.

The test of leadership is how we treat people in accomplishing our goals, and the long-term effects to us from our behavior in this regard are greater than any short-term technology or process improvements we can make by dehumanizing ourselves and hurting others.

The Search For Servant Leadership in A Chilean Mine

It’s About More Than Money

Profit is the typical motive of corporations around the world. However, Corporate Social Responsibility (CSR) is becoming more a part of our consciousness as we recognize that life is much more about what we leave behind than how much money we make.

With oil gushing into the Gulf for the last two months now, and doing G-d knows what ultimate damage to our environment, we are reminded that our actions do matter and that we must put our ideals, values, and generosity first and foremost.

Certainly, some companies disregard social responsibility. For example, BP with their slogan of “Beyond Petroleum” and their logo of a helios—a lovely environmentally-friendly green and yellow sunflower—seems to have hidden the true extent of their unsound environmental and safety practices.

In contrast, other companies are getting it right when it comes to CSR. For example, eBay has launched a charitable program called “eBay Giving Works” in which “sellers can commit to donate a percentage of their listing final sale price to the nonprofit of their choice.” Additionally, “shoppers also can donate to a worthy nonprofit at eBay checkout.” According to eBay, more than $150 million has been donated already!

One organization on the eBay charity list is called Save A Child’s Heart (SACH) foundation. According to their website, this Israeli-based charity has performed lifesaving heart surgery on 2000 indigent children in 30 countries around the world and “every 29 hours, we save a child’s life.” They have been certified as Best in America by the Independent Charities of America. Their work is inspirational and the children they save is truly moving. And this is one of many good organizations around the world.

As much as I am repulsed by BP and other such organizations that seem to function with near-complete disregard for fundamental principles of human decency in the name of the “almighty dollar”, I applaud others such as eBay, SACH, and many more that are working to “give back” and do genuine good for people around the world.

Many years ago, when attending Jewish day school, I remember a teacher telling us that “one day when you are on your deathbed, you will look back at what you have done in your life— make sure it’s meaningful and noble (and more than just about money).” I believe this is a valuable lesson personally and professionally.

Perhaps the oil gushing out from the depths of the sea can be a metaphor for charitable giving that can gush out from the hearts of people and organizations. We can counter greed and destruction with selflessness and caring for others.

It’s About More Than Money

Why The Customer Should Be The Center Of Our Professional World

It’s intuitive that organizations should manage oriented to serve their customers, because it’s the customers who keep them in business. Yet, in the name of “shareholder value,” many organizations continue to put short-term results at the forefront of their decision-making and this ends up damaging the long-term success of the organization to the detriment of its owners.

Harvard Business Review, January-February 2010, in an article called “The Age of Customer Capitalism” by Roger Martin states that “for three decades, executives have made maximizing shareholder value their top priority. But evidence suggest that shareholders actually do better when firms put the customer first.”

The author continues: “Peter Drucker had it right when he said the primary purpose of a business is to acquire and keep customers.”

Clearly, we serve our customers in the service of our mission. Our mission is why we exist as an organization. Our mission is to provide our customers with products and/or services that satisfy some intrinsic need.

The equation is simple:

Shareholder Returns = f (Customer Satisfaction)

Shareholder returns is a function of and positively correlated with customer satisfaction, as HBR notes. If we serve our customers well, the organization will thrive--and so will the owners—and if we do this poorly, the organization will die—and the owners will “lose their shirts”.

The problem with concentrating exclusively on stock price is that we then tend to focus on short-term returns versus long-term results, and the shareholder ends up worse off in the end.

“The harder a CEO is pushed to increase shareholder value, the more the CEO will be tempted to make moves that actually hurt the shareholders…short-term rewards encourage CEOs to manage short-term expectation rather than push for real progress.”

The article cites companies like Johnson & Johnson and P&G that “get it.” They put the customer first and their shareholders have been rewarded handsomely—“at least as high as, if not higher than, those of leading shareholder-focused companies.”

One good example of how J&J put customers first is when in the 1982 Tylenol poisonings, in which seven Chicago-area residents died, J&J recalled every capsule in the nation, “even though the government had not demanded it.”

Another good example in the article is Research in Motion, the maker of the BlackBerry. They recognized the importance of the customer versus the focus on the shareholder and already “in 1997, just after the firms IPO, the founders made a rule that any manager who talked about the share price at work had to buy a doughnut for every person in the company.” The last infraction by the COO had him delivering more than 800 doughnuts—the message was heard loud and clear.

These examples are in seemingly stark contrast to the recent handling by Toyota of its brake problems, in which there has been delayed recalls and the government is now investigating. As The New York Times (8 February 2010) reported: “The fact that Toyota knew about accelerator deficiencies as far back as December 2008 “raises serious questions about whether car manufacturers should be more forthcoming when they identify a problem, even before a recall,” said Robert Gifford, the executive director of the Parliamentary Advisory Council for Transport Safety, a nonprofit group that seeks to advise British legislators on air, rail and road safety issues.” Note: this is out of character for Toyota, which historically has been a car company known for its quality and safety.

As a long advocate for User-centric Enterprise Architecture, I applaud the organizations and the people that put the customer first—and by this, I mean not by words alone, but in deeds. It is easy to put the customer into our mission and vision statements, but it is another to manage our organization with a true service creed.

While the HBR article emphasizes short-term shareholder value as main culprit diverting us from a positive customer-focus, there are really numerous distractions to realizing the vision of a customer service organization. Some examples include: organizational politics that hinder our ability to accomplish our mission; functional silos that are self-serving instead of seeking the best for the enterprise; certain egocentric employees (a minority) that put personal gain or a lack of strain above a service ethos; and of course, greedy and corrupt individuals that seek to profit at the expense of the customer, perhaps even skimping on product quality and customer service, thereby even endangering health and safety.

While most people are essentially good and seek to do the right thing, the organization must put in place controls to ensure that our focus is never distracted or diminished from our customers. These controls include everything from establishing values, policies, processes, requirements management, product development, training, testing, measurement and reporting, and best practices implementation in order to ensure our finest delivery to the customers, always.

Why The Customer Should Be The Center Of Our Professional World

A Productivity Boost and Enterprise Architecture

For years, the IT industry has been putting out more and more devices to help us communicate, access and analyze information, conduct eCommence, be entertained, and generally increase productivity. To do these things, we have desktops, landlines, laptops, tablets, handhelds, cellphones, pagers, and all the application systems, social media, and internet to run on them. And for the organization, the CIO has been central to evaluating, planning, implementing, and maintaining these technologies.

You would think with all these tools for managing information, our lives would be simpler, more straightforward, and ever more carefree. Isn’t that what “tools” are supposed to do for people?

Well, think about your own life. Is your life less hectic with all the IT tools? Do you have more time to focus on what you’re working on? How’s your work-life balance?

If you are like most people these days, the answer is likely that you are more frantic and are trying to more things at the same time than ever before—almost driving yourself crazy, at times, to keep up.

The Wall Street Journal, 15 December 2008 had a book review by Christopher Chabris on “The Overflowing Brain.”

Here’s an excerpt of the review that I believes tells the story well:

“Take a look at your computer screen and the surface of your desk. A lot is going on. Right now, I count 10 running programs with 13 windows on my iMac, plus seven notes or documents on my computer desk and innumerable paper piles, folders, and books on my ‘main’ desk, which serves primarily as overflow space. My 13 computer windows include four for my internet browsers, itself showing tabs for 15 separate Web pages. The task in progress, in addition to writing this review…include monitoring three email accounts, keeping up with my Facebook friends, figuring out how to wire money into one of my bank accounts, digging into several scientific articles about genes, checking the weather in the city I will be visiting next week and reading various blogs, some which are actually work-related. And this is at home. At the office, my efforts to juggle these tasks would be further burdened by meetings to attend, conference calls to join, classes to teach, and co-workers to see. And there is still the telephone call or two—one of my three phone lines (home, office, mobile).”

Does this ring a bell for anybody? Dare I say that this is the reality for more of us these days.

So has IT (and the CIOs of our time) succeeded in giving us the technologies we need and want?

Well let’s look at what we said earlier were goals of IT—communication, information, commerce, entertainment, and productivity. Yep, we sure have all of these—big time!

Great, let’s just stop here at the outputs of technology and claim victory for our CIOs and the society we’ve created for ourselves.

But wait, what about the simpler, straightforward, and carefree parts—the anticipated outcomes, for many, of IT—shouldn’t we all be breathing a little easier with all the technology tools and new capabilities we have?

Ah, here’s the disconnect: somehow the desired outputs are NOT leading to the outcomes many people had hoped for.

One possible answer is that we really don’t want simple and carefree. Rather, in line with the ‘alpha male theory,’ we are high achievers, competitive, and some would even say greedy. And all the IT in the world just pours oil on our fire for doing and wanting more, more, more.

As many of us take some time off for the holidays and put our feet up for a week or two, we realize how much we look forward to some peace and quiet from all the helpful technology that surrounds us every day. But at the end of a few weeks, most of us are ready to go back to work and go crazy again with all our technology-driven productivity.

On a more serious note, from an enterprise architecture perspective, one has to ask if all this running around is leading to a strategic, desirable result in our personal and professional lives or is it just business for business sake, like technology for technology sake.

A Productivity Boost and Enterprise Architecture

Fear, Greed, and Enterprise Architecture

Just wanted to thank Jonas Lamis for posting my guest blog, "Fear, Greed, and Enterprise Architecture," on the Architecture & Governance Magazine site.

I think A&G is a great magazine -- down-to-earth and straightforward views on a range of important topics to CIOs, enterprise architects, and other IT professionals.

Kudos to Jonas and his team!

Fear, Greed, and Enterprise Architecture

Fear, Greed and Enterprise Architecture

Fear and greed can have a huge influence on our decision making processes. Rather than making rational, informed decisions, we are driven by fear and greed and herd mentality to do stupid things.

Irrational decisions driven by fear and greed are the antithesis of rational, well-thought out decisions driven by enterprise architecture planning and governance.

In an interview with Fortune Magazine 28 April 2008 (and on a day of teaching students from the University of Pennsylvania’s Wharton School of Business), Warren Buffet stated: “when people panic, when fear takes over, or when greed takes over, people react just as irrationally as they have in the past.”

Similarly, in The Wall Street Journal 18 April 2008, an MIT financial economist, Andrew Lo, stated: “You have to understand the mechanism of how fear and greed impact market decisions.”

Fear and greed are affected by our endocrine system. According to Andrew Lo, “for better or for worse, biochemistry makes money go to our heads. ‘We need to understand that physiological aspects of brain behavior really impact financial decisions.”

Testosterone is the hormone that makes us irrationally exuberant, confident and greedy, and another hormone, cortisol, causes us to feel fear and gloom.

Do these hormones and the resulting emotions we feel impact our decisions and behavior?

Your bet!

“Among males and females, testosterone is a natural component in the chemistry of competition…it enhances persistence, fearlessness, and a willingness to take risks. Among athletes it rises in victory, and falls in defeat. “

Endocrinologists have identified “the ‘winners’ effect,’ in which successive victories boost levels of testosterone higher and higher, until the winner is drunk with success—so overconfident that he can no longer think clearly, assess risk properly or make sound decisions.” On the opposite side of the spectrum, “too much cortisol, secreted in response to stress, might in turn make them overly shy of risk.”

In the face of fear and greed, decision making is impaired and becomes irrational. Decisions are no longer driven by the facts on the ground or by judicious planning or sound governance that comes with disciplines like enterprise architecture. Instead, people become slaves to their hormones and emotional effects.

In Fortune Magazine, Warren Buffet warned against falling into the fear/greed trap of decision making. He stated: “I always say you should get greedy when other are fearful and fearful when others are greedy. But that’s too much to expect. Of course [at a minimum] you shouldn’t get greedy when others get greedy and fearful when others get fearful.”

Rather than optimizing decision making, our fears and greed destabilize our ability to think clearly and rationally. When this happens, we need to rely more than ever on our enterprise architecture target and plans and on our governance processes, so that we stay focused on our goals and path to them and not be sidetracked by, as Alan Greenspan stated, “irrational exuberance” or irrational fears.

Fear, Greed and Enterprise Architecture