Contributing to the cyber security conversation

 Business, Canada, IT Security, politics  Comments Off on Contributing to the cyber security conversation
Oct 162016
 

My firm, Institute X, responded and provided a paper to the Canadian Government’s Consultation on Cyber Security. It’s a considered white paper that assumes government should do what it’s supposed to do (public safety and security; and support Canadian industry). We suggest that an “unreasonably” high standard for cyber security and directed support toward the Canadian cyber security industry (e.g., national security-protected procurement) will benefit Canada on multiple fronts.

Download it here: institute-x-cyber-security-consultation-submission-oct-2016.

Innovation Nation? More like Pontificate State

 Business, Canada  Comments Off on Innovation Nation? More like Pontificate State
Jul 132016
 

Innovation will not get better in Canada. Sorry Minister Bains, we will not become “Innovation Nation” because we are not a start-up nation. Not that being a start-up nation is necessary. But without start-ups, innovation has to come from the enterprise level. In Canada, it will not, except from a few egoless businesses still run by the originator that ignore and avoid “professional” managers/consultants in important leadership roles.

Sadly, the rest of enterprise size organizations will not be helpful though essential. It will not be for a want of desire and intensity. It will not be for want of noise. It’s because the biggest fraud and disservice the media and management gurus have perpetrated on gullible MBA-class and younger business executives weaned on two rounds of Internet unicorns, is to make it seem like innovation is easy and immediately accessible to those that want it.

Enterprises can put attention and resources to the challenge. And yet it doesn’t happen. So, what’s wrong? Obviously, it must be misguided tax (incentives) and industrial policy. No, there is a brain drain. No, it has to be inadequate support and early-stage financing. That’s not right. There’s a scaling capability shortfall. Or we need an entrepreneurial startup culture. Or maybe, everybody’s just not wishing hard enough.

Certainly, based on prevailing problem identification and solutions, it couldn’t be because real, noticeable innovation is hard, infrequent, and more demoralizing than cold call door-to-door sales. More than that, it’s not simple. In fact, innovation is typically complicated and complex (and if you don’t know the difference, perhaps that’s part of the issue…). None of which sits well with enterprise executives of the sort described.

We appear to have been convinced that everything at every stage should be simple. And some things are—at some well-trod, detail-defying level of description. Innovations, by definition, are not that. Even when, under the adoring glow of market success, the essence of the innovation is ridiculously over-simplified (think Über or iPod or Amazon) for broad consumption, the true measure of non-simplicity is easily scratched out of the polished surface.

Simple is fine. So long as you, behind the wheel of your car understand start (with biometric voice command), engage (GPS-enabled destination command), and let the car do its thing, you’re good. We’ve described simply the innovation of the self-driving automobile. Of course, it’s absurd. Such a “simple” innovation is unattainable without somebody—the business people purveying it perhaps—knowing the much less than simple (creative) thinking just beneath this placid surface.

Yet too many executives—with an unrelenting commitment to the latest whack-a-doodle pronouncements on professional management technique—have no real clue about innovation. If they did, they would know that asking for product concepts, business plans, and so on for innovations to be simple during that period between fanciful conception and practical realization is neither helpful nor valuable.

Focus not on the first part, but the last three words of what’s called Einstein’s Razor: “Everything should be made as simple as possible, but no simpler.”

There is skill and art in communicating the essence of innovation to different audiences at the appropriate level of complexity. Overwhelmingly that is where the thinking and difficult work falls into the “simplest possible description” trap never again to get back to the necessary level of difficulty that innovation demands. Too many of these professional managers are educationally and temperamentally unprepared to root in the not-simple, not-easy, muck of innovation from which the eventual simple story will eventually emerge.

An innovative idea starts with a simple proposition. But, if achieving it were that simple and straight-forward, it would be done already. That simple proposition, whether a business model innovation or technology development, meets the challenge created by the very recombination or change that makes the simple idea so appealing. Through a lot of trial and error, failure and heartbreak, a Eureka moment may happen. It is viable! Only then can the whole endeavor be once again regressed to an easy-to-consume PowerPoint graphic or 20-second elevator pitch or advertisement or what-have-you.

Those who haven’t or don’t work on innovations regularly have no idea. Until more enterprise (senior) leadership owns and understands (or grudgingly tolerates if not gets mucky themselves) the messy complexity of the process, and accepts that nothing gets simple without being very complex first, innovation will not be a strong suit of Canadian business. Our go-to move will remain able administration.

It doesn’t have to be this way. And it doesn’t have to be the future. Leaders, especially those phalanxes senior professional managers need to learn to love wallowing in the guts of their businesses—especially if their business is innovation.

Innovation advice… really?

 Business, Canada, politics  Comments Off on Innovation advice… really?
Dec 042015
 

It’s incomprehensible why a serious broadsheet exposes a 1000-word space to the maundering of a senior bank executive except to recall that the business broadsheet is a forum for recitations of faith. When a high priest needs a pulpit, a serious broadsheet provides one. How else to understand Victor Dodig’s contribution to the “innovation” echo-chamber in the November 27th edition of The Globe and Mail (“Canada must fill three gaps to reach its high-growth future”)?

“Innovation” is today’s incantation that serious people in management (and reporters) recite to prove their faith. So certain is its good, it is above question. That the talk of innovation suffocates all other sensible considerations, and lets (Canadian) executives off easily is beside the point. Mere invocation of innovation gets attention and, apparently, 1000 words in a serious broadsheet

In any case, Mr. Dodig’s ostensible objective is to reveal to the new Liberal government causes that inhibit Canada from achieving economic growth. His writers pick up Jim Balsillie’s tune and rehash au courant cocktail party clatter about the absolute national essentialness of innovation… as cover for another specific message. I choose to assume of Mr. Balsillie a pure-hearted intent, and so expect the larding of his noble clarion call with self-serving appropriations like a Bill working its way through Congress, weighs on him.

I ascribe unctuous malfeasance to the article if only because in 1000 words addressing three gaps, only about 150 address gap three: an innovation ecosystem, and a whopping 34 words speak to the second—something a banker would be credible with: innovation financing. The remainder of the essay (about 80% for those with post-secondary education yet remain innumerate) speaks to changing the public education system to alter the talent shortfall, and to innovative “emerging firms” being acquired by foreigners who take innovative Canadians elsewhere.

After laying out the harms visited upon Canada’s economy by failing public education, Dodig poses the question, “So what do we do [about students ‘choosing an educational path geared toward acquiring credentials rather than skills acquisition and what the labour market needs’]?”

Had he stopped there and proposed specific actions to counter insufficient interest in STEM fields, and the terrible literacy, numeracy and problem-solving skills in Canada, it would have been appropriate if not valuable. Mr. Dodig foreclosed that possibility by answering: “We need to promote education choices that match the needs of the job market.”

Like too many others, this commercial catechism appears sensible at first encounter and in certain narrow contexts. Its impotence as a broad response is usually dispatched quickly. An unnecessary act in this case because Dodig himself renders his recommendation pointless mere paragraphs later (without infringing at all on the space needed to argue for better financial support and an innovation ecosystem). As he transitions to raise—but not address—another innovation problem, Mr. Dodig seamlessly shifts our essential innovators from job market to entrepreneurial class. As such, the innovators he implicates won’t be employed by his or any other organization because they are those starting the “emerging firms” subsequently bought out for their developments and brain power then quickly whisked away to deprive the country of its economic future. Not that this isn’t a vexing problem, only that it is immaterial to job skills training (i.e., “meeting the needs of the job market”). Entrepreneurs not in the job market hardly need education to match the needs of the job market, you see.

A kernel of truth stabilizes Mr. Dodig’s recitation. But methinks the purpose is less about innovation than about redirecting public education toward a goal of finally, wholly eliminating the need for businesses to train for their own needs. The proposal is that Canadian society should fund employee education for (large) firms that employ—so they don’t have to.

Doubtlessly people should be employable, and a well-educated individual ought to be employable, which is to say literate, numerate, and able to solve problems by way of critical and creative thinking at one or both of theoretical and applied levels. But those qualities apply to software coders, managers, artists, entrepreneurs, electricians, and even hockey players. In other words: to everyone. Yet, rather than propose an overall higher national standard of such capacity, perhaps with incentives to pursue engineering instead of law, or cryptography rather than marketing, this counsel focuses on job-ready skills to benefit employers. What’s next: other factors of production underwritten by the public purse so they too are “ready” for business?

Mr. Dodig is right about the shortcomings he raises. Still, you can scratch deep and find no hint of the banks’ role in defunding manufacturing (i.e., finding Canadian manufacturing too risky to provide credit for operations or expansion or exporting…) or limiting cash for risky emerging firms. Mr. Dodig is silent on the notion of sharing risk with the innovators he’s so concerned about to help them create and then to keep them Canadian.

Finally, it would be cruel to ask the obvious question: If this bank(er) is so interested in numerate and literate and creative talent—of the STEM variety, particularly—rather than students who have merely “acquired credentials,” why continue demanding the MBA as an essential credential for its own innovative roles, such as they might be? To the extent these MBAs are scientists, technologists, engineers, or mathematicians with business finishing school certificates, fine. But we all know the majority have merely acquired the credential to make real money in consulting and banking, or to be marketers. (Oh, the irony.) And there is abundant evidence everywhere that they are not necessarily more numerate, literate, or able to genuinely solve problems critically let alone creatively. On these counts the bank fails. Before ostensibly providing counsel to the new government or even using that as cover to inject ideas into the public domain, Mr. Dodig’s bank ought to lead by example not faulty rhetoric… if he’s serious.

Asymmetric policy action: cars and drivers

 Business, Canada, Management, politics, society  Comments Off on Asymmetric policy action: cars and drivers
Jan 072015
 

I would offer to write a brief piece for Policy Options, The Walrus, or some other such magazine but have no desire to spend the time documenting the self-evident, which will be obvious later, just to appear “well researched.” Instead, I’ll write here and content myself with distributing the link.

Here’s the premise. Governments of all sorts are incapable of rapidly deploying intelligent policy for a number of reasons, not the least of which is politics and the pressure to do big and meaningful things. It appears better to do nothing than to do something not publicity grabbing. So, trivial things get done for trivial political reasons, or overinflated mega-projects are launched only to crash into a mess of overspending and under-performing.

But, in the spirit of the unfortunately discredited Broken Windows theory (the idea that broken windows are an example of indicators that residents don’t care so further vandalism is more likely…), I have a couple of ideas for the provincial governments. These ideas have three key features. First, they are simple to implement, administer, and enforce if necessary. Second, they are or can be revenue neutral at worst. Third, their most significant benefit is indirect financial and social impact. The biggest drawback is that they will be resisted because both target the sacrosanct car and driver.

First idea: Outlaw blackened windows on all vehicles not in livery service.

I don’t know when manufacturer-installed and after-market window tinting became vogue. When I was young it was not done and may have been unlawful—at least in Manitoba. Only limousines had tinted windows, and only for the passenger compartment at that. Today, every other car on the road has completely opaque glass all the way around.

The problem here is pure social psychology. The window tinting enables an anonymity effect, which subtly encourages people to do things that they would not do if they knew people could see who they were. It’s common and goes a long way to explain increasing driver aggression, particularly from within cars with tinted windows. There is also the entitlement effect in play on the roads and in parking lots, but that typically affects only drivers of luxury vehicles.

The solution is to immediately ban the production and sale of vehicles with tinted windows. Vehicles with existing tinting and livery vehicles would have to be grandfathered. Admittedly, there are gaping holes for anybody with a pre-2015 vehicle to apply aftermarket films, which couldn’t be banned without affecting the ability to apply such films to house and commercial windows. But, inspection and registering of the vehicle for tinting could be made part of the emissions testing process.

The value is in the opportunity to negate the anonymity effect to shape more civilized behaviour on the roads. More civilized behaviour, less rage; less rage, fewer altercations; fewer altercations, lower insurance and other costs.

Second idea: Compel mandatory driver retesting every five years (at least).

Needless to say, acceptance with open arms is improbable. Despite my high school driver’s ed. teacher’s mantra that “driving is a privilege not a right,” common belief is exactly the opposite. That’s why people will drive, legally, well beyond their capacity to do so. It’s also why drivers get into intractable ruts of poor, potentially fatal driving habits like never signalling, weaving between lanes, tailing too close, running lights and stop signs, passing on double solid lines, and so on.

But the program is relatively small with asymmetric downstream impact. Retesting could be easily implemented: most of the processes exist. Licenses have to be renewed—that is, a new picture and so on, not just the fees paid—every five years typically. Only a testing component would need to be added. And even that process exists for new drivers. By increasing the renewal fee to cover the testing, the program could run cost neutrally if that were important.

The immediate benefits would be obvious. All those drivers that we see who should be participants on Canada’s Worst Driver would get cleared off the road. All those drivers who no longer have the physical or mental agility to be behind the wheel would be cleared off the road. For seniors and others who, allegedly, depend on driving their cars, there could be a grant of lifetime access to public transit. Once again, the level of highway civility ought to go up owing to a clear, shared understanding of the rules and what to expect of other drivers. Right now, it’s a crapshoot anticipating what other cars will do in any given situation.

The longer-term benefits are where fixing this particular broken window starts to change the neighbourhood. With more recently refreshed drivers behind the wheels (especially if you can see them through untinted windows), we could expect increased safety and thus the incidents of traffic accidents ought to go down. The effect of that one impact ripples outward. The most obvious and probably valuable effects are: policing could be directed toward other areas instead of highway traffic; use of ambulance and other emergency service for traffic accidents, including hospital-generated health care costs, would decline; and property damage and insurance costs would be reduced. (This last one adds up particularly in provinces where public insurance prevails.)

 

This is just fixing broken windows and shouldn’t demand extensive study, debate, and investment in (mega-)projects. But the asymmetric effects will well outweigh any insignificant political costs. It should not require loads of courage to command them into practice.

And if you like these, you should hear some of my other ideas for health care, information technologies, productivity, and innovation

Gwyn Morgan: the apologist

 Business, Canada, ethics, Management  Comments Off on Gwyn Morgan: the apologist
Sep 092014
 

I read this op-ed piece in the Globe & Mail this past weekend by retired CEO Gwyn Morgan. Before I could respond in the G&M comments section, there were approximately 400 comments which, using the first 50 or so as a sample set, were about 90% on the side of pillorying the man. To their credit, the G&M readers did not object merely on loose philosophical grounds–the kind that Morgan raised in his 700 words; they responded on mass to the unadulterated hypocrisy. When you can tell the shill is the shill, the ruse no longer works.

That pisses me off because I really wanted to take a shot at the plutocrat who felt compelled to make a plea that readers of the Globe & Mail stand up and defend corporations! Seriously! They are under attack and need defending by corporate CEOs, executives, and other cheerleaders. Those damned, Communist, lefty haters of all things capitalist were ganging up on business. And, damn it, it’s just not right.

Again, to their infinite credit, the commenters in the Globe’s comments section for the article were substantially NOT wing-nuts. Their points were… well… pointed, well thought out, cogent, articulate, caustic in many cases and decidedly NOT about business or corporations. One could even, as an apologist for the masses, say say that they were remarkably likely to say, about corporations and business exactly what the scorpion said to the frog in the old saw joke: “it’s in their nature.” And that’s OK.

Nobody is suggesting business or corporations are bad (or good). I think what I understood from the comments is that there are others like me. We appreciate what capitalism and laissez-faire not only has to offer but what it’s generated economically and socially for all of us. We laud “business” as a noble pursuit. But, let’s not by any stretch of the imagination let anyone believe that we’re caught up in the nonsensical argument that a CEO “deserves” 50x, 100x, 500x the compensation of the average employee. Perhaps the entrepreneur or owner who has been “at risk” deserves that kind of reward. But an overpaid employee with nothing “at risk” does not–no matter what Gwyn Morgan might have to say.

And even at that, let’s be honest, the largest of corporations–where highly overpaid capitalist employee-CEOs hide out–are not a place where you would find anybody with real capital “at risk.” The risk such as it were disappeared a long time ago. These are for the most part money-printing machines (i.e., banks) wherein the only real risk is the utter incompetence of its human brain (read: CEO and executive). So… if there’s no risk involved, then the (one could easily argue, “absurd”) profit extracted out of the economy that moves to shareholders or to non-taxable off-shore domicile is nothing more than a clever wealth transference mechanism that takes from the 79% and moves to to 1%. Note that I left the bottom 20% out because, in Canada, they are either net benefactors of social assistance or meaningless contributors (i.e., collateral damage) anyway. And that just doesn’t sit well.

So, take it from me, a genuine laissez-faire capitalist and free market democrat. What the rest of society doesn’t like is corporate welfare assholes pretending they are hard done by, offloading the downside risk and the cost to everyone else while they take in the risk-free upside benefits… and then whine about it in a national newspaper.  Gwyn, turn in your capitalist membership card.

“User Experience” is nonsense

 Business, Management, organization, stupidity, Uncategorized  Comments Off on “User Experience” is nonsense
Sep 022014
 

God damn Steve Jobs! It’s hard to dredge from memory or history another huckster who left behind such a legacy of dreck. Jobs was a tireless promoter who innovated relentlessly and—as legend would have it—single-handedly changed the face of the consumer world from personal computing to animated movies to music consumption and mobile telephony/computing. Love it or hate it; he did it.

But that’s not what I mean. The detritus in his formidable wake is all of the half-baked nonsense that others less capable have picked up. Where for Jobs the result if it would be a gastronomic delight, in other hands it becomes fast food. Nowhere is this more evident than in the Web world.

You see, Jobs was a man with vision, drive, and—to switch metaphors—the skills of a utility fielder. He was a showman and marketer with a sense for the appealing. He was an evangelist and salesman with a feel for the con. He was an industrialist with a grasp of production. And, allegedly, in his later tenure, became something of a strategist and commanding agent of change. What this adds up to is a well-rounded entrepreneur who knew inherently that even though he was reducing a complex mix of ingredients to a single catchy phrase, there was a lot of magic going on.

Those who worship at the alters of his several business religions are not so well versed. They do not appreciate that, just to hold the mystique for single-minded people like them, Jobs oversimplified and reduced to an aphoristic sound-bite, very complex conditions. They don’t get that Steve Jobs was a sophisticated carney and they are his marks.

Why do I rant? Because I am now fed up by the noxious and excessive blather from all levels of so many organizations about consumer experience or customer experience. Don’t get me wrong: such concern is paramount, or at least it will be until it proves unprofitable and therefore unacceptable to the stock market. To satisfy the customer—to make him or her or it categorically happy with your wares is fundamental to loyalty, repeat business, referrals, buzz, and ultimately revenue if not profit. And there is truth to the causal connection between the visceral experience with a product/service and the good outcomes noted above.

That said, the ham-handed Webheads roll this all up under the aegis of user experience. And then they reduce all of that holistic business complexity to what would properly be limited to user interface. When gullible and complicit executives support the cause user interface gets conflated with customer experience and the absurdities begin.

“So what’s the problem with that Mr. Pedant?” You ask. Not much except for how the UI (user interface) people—interaction designers really—get up on their hind legs and throw their weight around with the support of improbable, linguistic overreach. All of a sudden the interface carries dominion over all other possible aspects of customer experience. For instance:

  • A customer’s preconception of the product, from which his/her experience is anchored, starts with the ads and promotion. Shouldn’t Marketing Communications be in charge?
  • A customer’s sense of proportional value and the resulting positive/negative experiential feeling is critically related to the price paid. Why wouldn’t Pricing get the last word?
  • In the highly probable event of a problem with the product/service/Website, how the various customer service channels respond has enormous impact on customer experience. Why then does Customer Service not hold sway?
  • Let’s not overlook that an offering simply working (or not) has a clearly enhancing or detracting effect on one’s overall impression. So it seems that Operations ought to be the final arbiter of customer experience.
  • All this without even considering that the product group determines market need and value, and orchestrates all the above-noted constituent players and more—including the interface designers—to create and provide an offering to please customers and fill the company coffers.

Let’s agree that customer experience is valuable, but that it is the complex output of many inputs. Even if you make the dubious causal leap that customer experience equals success, it may or may not recognize that ultimately success is profit. And on this it merely muddies the simplicity to note that while touting the experience, Steve Jobs could shave Lincoln’s beard off of a penny. (Maybe that has had a little to do with Apple’s commercial success…)

To blithely dictate that user experience equals customer experience is wrong to begin with. To push that further and allow customer experience, which is actually now equal to user interface, to be the start and end or at least the dominant element of commercial input is simplistic, naïve, and unduly credits user interface (i.e., design) with too much.

Besides, isn’t this kind of hyperbolic overextension what “Marketing” is all about? Does nobody care that now Marketers have no real purpose let alone dominance?

Holacracy… old wine new bottles

 Business, Management, organization, society  Comments Off on Holacracy… old wine new bottles
Aug 292014
 

Found this article in the Globe and Mail (Say goodbye to hierarchy, hello to holacracy) about the disappearance of hierarchy at some “cool” businesses (such as Zappos). It’s essence is per the following definition:

Holacracy is a social technology or system of organizational governance in which authority and decision-making are distributed throughout a fractal holarchy of self-organizing teams rather than being vested at the top of a hierarchy

Since it’s only been in existence since 2007 and seems to be favoured by new economy, technology-based businesses and not-for-profits, it might be a little early to tell whether there is broad merit in the approach. Having self-contained, self-directed units makes complete sense and aligns with many features of nature and certainly of “Complexity” and “Emergence” theories. I’d say generally I’m in favour with the caveat that there are limits to its relevance.

Take the military, for instance and as a deep-relief example of where hierarchy is necessary. While it makes sense that battalions or platoons or fleets or squadrons, in combat, be enabled with self-direction over their own activities to achieve clear goals (this is fundamental), you can’t run an army that way. That kind of organization needs, at its broadest levels, timely and ongoing coherence in purpose and action fast. Holacracy would tend toward incoherence in the short run, though it might be more valuable and effective in the long run. So, organisations that need to be coherently directed toward a possibly fluid goal with a minimum of evolutionary trial and error as the holocratic parts bump into one another might not be right for this structure.

That generally describes large enterprises of the money making or other variety. But even as I type this I wonder if the issue is not black and white but many shades of grey. That is holocracy at one level does not mean hierarchy at another. Perhaps there is harmonious combination of these two structures that would be generally applicable. Maybe that’s been considered by the creator of the idea and/or its various evangelists, including Ken Wilbur.

The article I’ve tagged makes the point but, truth be told, I didn’t read it that closely to know whether it only mentions government or dwells on it. There is a statement to the effect of this being how government works and isn’t it ironic that after so long being told government should be more like business, it’s business that is now being told to be more like government… is? I don’t know about that, but again it could be the degree of magnification. Yes, government departments and agencies do operate as holon. So in that respect, I get it. But, within those departments and agencies I’ve yet to see anything but wicked, rank-respecting, bloated and unwieldy hierarchy.

There is, however, one area of government that is definitely holacracy. That is the confederation as Canada is structured with its provinces being largely independent parts loosely held together by the national centre (federal government), and as Switzerland is with its cantons being practically distinct and unrelated units. These work to greater and lesser degrees. One can find wonder or horror in the structure depending on what you choose as a focus.

In any case, it smells a bit like old wine in new bottles. Nostalgia being dusted off and sold for more than its worth. Harumpf.