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Archive for December, 2008

Previously, I introduced a movement that is trying to unite the human race through music:  Playing for Change, Peace Through Music.  Since then, I’ve received so many wonderful responses about this movement that I wanted to give some more information.

Mark Johnson, a co-founder of the movement, was interviewed by Bill Moyers on his weekly PBS show in October. See here.  More recently, Mark wrote a guest blog post on Bill Moyers Journal this month.  Read here.

The film, “Playing For Change, Peace Through Music”, has been playing at various film festivals.  The hope is to have it be distributed sometime in 2009.  My understanding is that a CD and DVD may be out by Spring, 2009.  

However, the movement is more than just the film.  It is a a foundation (Playing for Change Foundation) that is trying to build music and art schools throughout the world.  Recently, the first Playing for Change music school was constructed in Gugulethu, South Africa.  The foundation hopes to build many more.

Here is a rendition of “Revolution” by the schools music teachers.

 

 

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Poor Rod Blagojevich

Poor Rod Blagojevich

 

Meet Rod Blagojevich, a true American patriot who is being persecuted by evil, but powerful forces.  Poor Rod, a political lynch mob is after him, and for no good reason either.  Everyone’s out to get him.  People in his own Democratic party, and the Republicans too.  TOGETHER, they are trying to lynch him.  But never fear, Rod will fight, he will fight, he will fight to his last breath.  Oh, poor, poor Rod.

Go on Rod, and tell everyone how you did nothing wrong.  After all, it’s been a long tradition in Illinois politics to leverage one’s position for personal advantage… uh, personal gain.  You scratch my back and I’ll scratch your back, right?  So what that you wanted something back for appointing the “right” person to President-elect Obama’s vacant senate seat.  Sheesh, come on.  After all, not all governors get an opportunity like this.  It’s like you said, “(The Senate seat) is a [expletive] valuable thing, you just don’t give it away for nothing,”  You’re no fool, Rod. No one wants a fool for governor.

Anyway, tell everyone how hard it is to maintain a young “celebrity governor-on-the-rise-to-eventual-white-house” life style.  It takes [expletive] money.  And lord knows, you deserve to have more money.  With all that you do as a public servant, you definitely are ENTITLED to more money.

After all, you are not just an ordinary Joe.  No, you are Rod — Rod Blagojevich.  Damn, you can even swear with the best of them.  In fact, your wife can even swear with the best of them too.  Wow, what a golden couple!  Illinois is so lucky to have such a celebrity-type couple in its state mansion.  Oh, oh, wait, that’s right.  The little capital city of Springfield was not cool enough for the Blagojeviches.  That’s right, they had decided to stay in Chicago instead.  Wow,  such amazing mavericks.  

You did nothing wrong Rod.  You’re dying to show everyone the proof that will exonerate you.  But you’re showing great restraint by not divulging it now.  You don’t want to play the game of 30-second sound sites like those in the lynch mob.  Way to take the higher ground, Rod.

Why are you being persecuted?  Everyone is against you.  You did nothing wrong. Come on, Rod, forget restraint and show everyone your proof.  You wouldn’t really use words like “political lynch mob” without proof, right?  You wouldn’t quote Rudyard Kipling’s poem, “if” without proof, would you?  By the way, great delivery on the poem.  You da man!  Way to have it memorized.

Show everyone Rod…  come one…  show everyone…  show everyone what a block-head you are.  Stand in front of the cameras and ramble about nothing.  And lie.  Just lie.  If you say it with enough conviction maybe someone will believe you.  Personal integrity?  Oh yeah, you have no idea what that means.  

Rod, you are a narcissist, incapable of empathy.  It’s all about you, I know.  Hey, wake up Rod.  Look behind you, in front of you, next to you, no one believes you.  You’re a block-head.  

76-page affidavit against Blagojevich

Blagojevich press conference on CNN

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goodtogreatAs diverse as some of my posts have been, I’ve still tried to highlight impacting personalities, whether positive or negative.  

I’ve written many posts about leaders of business, probably because I am a businessman.  Some showed humility like Haruka Nishimatsu, CEO and President of JAL.  Others showed innovation like T.A. McCann of Gist.com. Unfortunately, some business leaders showed poor judgement.  Paul Johnston, former Entellium CEO, was charged with wire fraud, and Jeff Hawn of Attachmate pleaded guilty to animal cruelty for illegally killing buffaloes.  

I’ve also given my critical assessment of the “three stooges of Detroit” and why leadership needs to change within the big three US automakers.  

So, in this post I want to write about leadership, especially from Jim Collins’ perspective as outlined in his book, “Good to Great”.  I am a true fan of Jim and his work.  He uses empirical research and tries to find out what is in the “black box” that determines whether a good company turns great or not.

In his book, he outlines six vital components of any company becoming great, as defined by being able to sustain extraordinary results for at least 15 years.  These were:

  • Level 5 Leadership (need to read the book for explanation on Level 5)
  • First Who… then What
  • Confront the Brutal Facts
  • Hedgehog Concept
  • Culture of Discipline
  • Technology Accelerators

For this post, I’m going to focus on “Level 5 (Great) Leadership”.  What does this mean?  Well, if you were to close your eyes and think about effective leadership, what would you imagine?  You might imagine a visionary, with an articulate tongue?  Does charismatic leaders like General Patton or Caesar come to mind?

According to Good to Great research, effective leaders of the elite companies “channel their ego needs away from themselves and into the larger goal of building a great company.  It’s not that (these) leaders have no ego or self-interest.  Indeed, they are incredibly ambitious — but their ambition is first and foremost for the institution, not themselves.”

In fact, great corporate leaders are more like Abraham Lincoln and Socrates than Patton and Caesar.  The common thread among the elite companies that Jim and his team  studied was a leader with this simple duality:  modest and willful, humble and fearless.  Humility + Will = (great, effective) leadership.

Here are other commonalities among these leaders of great companies:

  •  They all set up their successors for even greater success in the next generation.  By comparison, many flamboyant egocentric leaders often set up their successor for failure.
  • Compelling modesty, self-effacing and understated.  In contrast, two-thirds of the comparison companies had leaders with gargantuan personal egos that contributed to the demise or continued mediocrity of the company.
  • Fanatically driven, infected with an incurable need to produce sustained results. They are resolved to do whatever it takes to make their company great, no  matter how big or hard the decisions.
  • Display a workmanship diligence — more plow horse than show horse.
  • Look out the window to attribute success to factors other than themselves.  When things go poorly, however, they look in the  mirror and blame themselves, taking full responsibility.  The comparison CEO’s often did just the opposite — they looked in the mirror to take credit for success, but out the window to assign blame for disappointing results.

According to Jim, one of the  most damaging trends in recent history is the tendency (especially by boards of directors) to select dazzling, celebrity leaders and to de-select potential leaders with humility + will.

So, let’s meet again Haruka Nishimatsu, CEO of JAL.  His airline company is struggling as is the whole airline industry.  However, his humility and will to “do whatever it takes” to make his company successful bodes well for JAL.  Mr. Nishimatsu embodies many of the positive characteristics described in Good to Great.  

In comparison, the private jet extravagance of the Detroit CEO’s, or the humongous bonuses taken by leaders of our failed financial institutions are sure examples of what Good to Great discribes as the typical behavior of “comparison company” CEO’s.  

Good to Great research was done in the US, not Japan.  Why won’t more boards of US companies heed its warning, especially as our economy struggles?  We need great (Level 5) leaders to lead our companies back to greatness. 

 

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    Meet the late Donella Meadows, whose legacy still lives through a powerful video “The Miniature Earth“.

    Although Donella passed away in February, 2000, Her original work “State of The Village Report” (1990) gave the basis for this video that reduces the world’s population to a community of only 100 people. Very powerful, making us easily understand the differences in the world.

    I always enjoy efforts that make numbers more relevant, powerful.

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    Meet Haruka Nishimatsu, the President and CEO of JAL.  His is an amazing story of humility and sense of team with his company and workers.  

    By internet standards, I know this may be old news, but I just had to post the CNN interview with Mr. Nishimatsu, given my previous posts about the US Auto Industry bailout drama. If you haven’t seen yet, please take the 2 minutes 20 seconds to watch.

    Nishimatsuさんありがとう

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    Meet the customers of Starbucks, who are getting into the holiday spirit.  More and more people are “paying it backward”, meaning they are paying for the order of the person behind them.  In Bloomington, Illinios, Starbucks customers paid it backward for more than three hours last Tuesday.

    Starbucks customers started to pay it backward

    Starbucks customers started to pay it backward

    Pretty cool, given the tough economic times.  But then again, those persons still willing to pay Starbucks’ prices for coffee are probably doing okay. More surprising is the fact that coffee buyers would be in such good spirits.  Most of the people I know who haven’t had their first cup in the morning can be somewhat grumpy. I digress.  

    Random acts of kindness are one of the real joys of living, whether you are giving or receiving.  Imagine, you’re lost in your thoughts for the day, maybe stressed about something, and you find out that the person ahead of you in the drive through paid for your order and wished you a Merry Christmas.  Yeah, that would make anyone feel good, touched by a random act of kindness.  So, you may feel compelled to buy the order of the person behind you, so that person can enjoy the pleasant surprise you just received. It’s a nice story.

    But now the problem is that the media has spilled the beans on paying it backward.  A critical element of being touched by a random act of kindness is the sheer unexpected surprise.  However, now with the evening news (and bloggers like me) blabbing about this holiday trend, the surprise will be less so. 

    My encouragement then, is to focus on the random acts of kindness and not the means by which we deliver such joy to others.  I’m going to bring a blanket for a certain homeless man whom I pass often in the mornings.  I’m going to smile at the uncertain tourists on the bus.  In fact, I’m going to make a list of random acts of kindness that I want to complete between now and the end of the year. The spirit of “paying it backward” should be kept alive. 

    In these times of uncertainty, kindness is especially warming, gives confidence in each other and the human kind. Please join me in making that list.  And thanks to all of you who paid it backward and reminded me the natural goodness of the human heart.

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    carsLet me re-introduce the three stooges of Detroit:  Richard Wagoner (CEO, GM), Alan Mulally (CEO, Ford), Robert Nardelli (CEO, Chrysler).  You’ve met them on a previous post.

    They came back to Washington DC last Thursday in hybrid cars, rather than private jets, asking again for a government bailout.  They prepared a more detailed plan for how such a bailout loan would be used to help the three struggling US automakers get through their financial difficulties.

    While the public sentiment has not showered them with a lot of smypathy, it appears that the US auto makers will get some sort of a bailout loan, most likely money from a fuel efficiency research program.  It’s funny how the government can find billions of dollars in their programs.  The recent report that showed some 500,000 Americans have lost their jobs has definitely softened the resolve of some unsympathic politicans. 

    After watching Curly, Larry and Moe during the saga, I still think a change in leadership should be mandatory as part of the bailout package.  These three men are embedded in a system that has taken the once most powerful auto makers into near obsecurity.  Their first trip in private jets is an example of how out of touch they are with reality.  They have a sense of entitlement that is worse than that of UAW.  We need fresh perspectives, real change in the industry.  

    Let me state for the record that I’m not very optimistic about the bailout.  Any bailout now would not be a result of a compelling business plan that outlines a likely turnaround for these companies.  Rather, any bailout would be approved only because politicans are fixated on the declining job market.  

    While we do need to keep America working, the fundamental issues behind the US auto makers’ plight must be fixed first and foremost.  That means having labor agreements that are competitive with their competitors.  That means having dealer structures that are competitive.  That means having a vision for the future.  That means having “Apple -like” understanding of consumers.  Why would any of us think that this leadership, with its track record, be capable of accomplishing such changes? 

    Despite the cumbersome process of a bankruptcy, it would allow for a clean slate to come up with new ways of thinking.  Filing for Chapter 11 does not mean all workers will lose their jobs.  The companies will continue to operate.    

    Regardless of my opinion, the government will pass some sort of a bailout plan.  The three stooges then will have a slightly longer lease to fail again.  I hope I’m wrong.

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    According to the bankruptcy filings by Entellium, previously laid-off workers are listed as creditors.  Um-hum.  

    The remaining employees, much maligned by some of those laid-off back in October, persevered through uncertainties to negotiate an asset sale of the spiraling company.  If successful, that sale to Intuit will raise money to pay Entellium’s creditors.  This was all done under the leadership of board member Jonathan Roberts of Ignition Partners. 

    In early October, Entellium laid off 114 workers after CFO Parrish Jones and CEO Paul Johnston were charged for inflating numbers at the maker of customer relationship management software.  At that time, the company did not have the funds to pay out severances, and had to get separation agreements from laid off employees to keep the company going.  

    My observations in following the Entellium saga have been about “personal integrity”.  As I’ve stated previously, Paul Johnston and Parrish Jones had none.  I was confident that Jonathan Roberts would do the right thing, as I predicted in my last post.  

    If you are interested in following the story more closely, follow John Cook on Techflash.  He’s a talented journalist and a must-read for anyone interested in the start-up community in Seattle.  My blog posts are just observations about people, not the story telling.

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    entellium

    Meet Jonathan Roberts, a venture capitalist at Ignition Partners and board member of Entellium.  Previously, I blogged about the arrest of two former Entellium executives for cooking the company books and deceptively raising nearly $50 million in venture money.  

    Paul Johnston, the former CEO, remains in jail. Parrish Jones, the former CFO, has been released awaiting indictment.  Both seem to be negotiating plea deals to reduce their wire fraud charges.

    Now, Jonathan Roberts, basically the guy left holding the bag at Entellium, is making news as the maligned company files for Chapter 11 bankruptcy, while selling assets to Intuit.

    Jonathan has asked the bankruptcy court to approve retention bonuses for the 15 remaining Seattle employees, as well as severance packages for three key employees should they be let go.  He asserts that these three employees have been identified as key personnel by Intuit, critical to the transition as Intuit takes over assets.  In addition, Jonathan requested retention bonuses for the 13 remaining Malaysian employees.

    Some former Entellium employees are angry for not  having received severance packages after their abrupt terminations shortly before the news of fraud broke out.  Leif Jensen filed suit last month for his lack of a severance package after signing a separation agreement “under pressure”.

    Jonathan’s request for the retention bonuses and severance packages have further aggravated some former Entellium employees.  They point out that Jonathan needs to bear some responsibility for the situation.  After all, he and the other board members obviously did not conduct proper due diligence on the business.  

    The question now is should Jonathan be asking to honor the severance packages that were voided by he separation agreements that many former employees say were signed under considerable pressure?

    Right now, Jonathan has a fiduciary duty to all share holders to make the most of a bad situation.  That means he needs to get the assets sold to the potential buyer at the best possible value.  It also means that he needs to salvage as much of the money back to investors and creditors as possible.  The retention bonuses and severance packages are a way to ensure that the assets are successfully sold. No brainer there.

    But beyond the fiduciary duty, Jonathan also has the responsibility to make sure that the company does what it can to fulfill obligations to its former employees.  Whether the separations agreements were signed under duress will be determined by the court of law.  But Jonathan has an opportunity right now to stand up and take some accountability along with the board by righting what may have been a wrong.

    My first “Entellium” post was mostly about how we need strong societal valuation of personal integrity to offset some of the unbridled greed that sometimes our capitalist system creates.  So, again, I’m addressing the Entellium issue with what may be another personal integrity issue.

    No one likes to be duped.  As a person who has dealt with Jonathan, I’m certain he is tremendously embarrassed by the whole ordeal.  He trusted Paul Johnston, someone he saw at his church Sunday after Sunday.  Jonathan is a brilliant marketer with great passion in all he does.  Brainstorming with him on business ideas was one of the highlights of working at CSG Openline.  I consider him a man of tremendous talent and integrity.  I trust he will act accordingly.

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    greggrunberg

     Meet Greg Grunberg, a trailblazer of sorts in integrating social media ever closer with a television show.  Oh yeah, he’s also an actor who play Matt Parkman in the popular television series Heroes.  He plays a policeman who can read and influence people’s thoughts.  One of the scarier powers, I think.

    Greg tweets avidly on Twitter, with more than 5,000 followers (and quickly growing).  He tweeted today leading up to the show.  Here’s an example: “Yeah, so here’s the scoop… not spamming! @Heroes is really really good tonight. Don’t say that every week, ya know.”

    I must admit having an actor from the show interacting on twitter increased my anticipation for today’s episode.  Brea Grant, who plays the speedster Daphne, also had reminded her some 4,000 followers to watch Heroes tonight.

    Interestingly, during the six hours leading up to the show, Heroes was the sixth most popular topic on Twitter, with “Christmas” being the most popular.  According to Flaptor, “heroes” was the ninth hottest word on Twitter during the day behind (work, monday, snow, to work, school, december, obama).

    So, I decided to follow #heroes while watching the show tonight.  The tweets came in fast and furious.  I had to refresh every couple of seconds.  I felt as if i had invited people over for a Heroes-watching party.  A lot of the tweets were just people updating their statuses.  However, some were giving continual comments, and I enjoyed several witty observations.  I felt like I was part of a crowd (or tribe, as Seth Godin would prefer).

    This was interactive television in a different way.  It wasn’t just voting on reality TV.  It was also different than following a blog during a sports event.  The tweets were a democracy of many different people micro blogging. The crowd came up with its own voice without a moderator.  

    Initially, many people were annoyed that the eclipse, which took away all the Heroes’ powers, was lasting too long on the show.  One tweet even explained, “According to NASA, an eclipse can never last longer than 7 minutes and 31 seconds. Eclipse STILL going on Heroes :| “.  Haha, that made me laugh.  

    Then, young women started posting excited tweets with the guest appearances of Seth Green and Breckin Meyer as comic book store workers.  Green had what is bound to be a classic Heroes‘ quote, “Best day ever!” after seeing his comic heroes come alive (sorry, but you had to have seen it).

    As the show concluded many tweets called out Hiro, the Japanese youthful Hero, as the reason they love the show.  

    Throughout, some voiced their frustration over the show, but that is to be expected in an open forum like this.  Actually, i was surprised by the small ratio of negative-sentiment tweets.

    Let me get back to my point.  These were the two most interesting tweets: First, “#Heroes FTW! Sylar Down, Syler Down!” after it appeared that a villainous hero turned good hero, Sylar, had died.  Then, “@greggrunberg You were right, #Heroes was great tonight. It’s also neat to see you on Twitter” a follower tweeted to Greg Grunberg, our “trailblazer”.

    The first tweet represents the interactive element that can be refined so much more as people on twitter (a tribe) start watching shows together on the social media platform.  The second tweet shows the potential of the  conversation and buy-in that can be garnered by the stars with their followers — a modern, social media way of promoting shows.

    This method of interactive television will only become better refined.  Stars will need to be accessible.  Sponsors will need to join in on the tweets about their shows.  And dare I say, do the stars eventually start promoting products on twitter as well?

    As one tweet stated, “#Heroes kicked ass tonight!”… yeah, the episode wasn’t bad either despite the extended lunar eclipse.

    P.S. While writing this blog post 161 more tweets were posted with “#heroes”.

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