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We will continue to focus relentlessly on our customers. * We will continue to make investment decisions in light of long-term market leadership considerations rather than short-term profitability considerations or short-term Wall Street reactions. * We will continue to measure our programs and the effectiveness of our investments analytically, to jettison those that do not provide acceptable returns, and to step up our investment in those that work best. We will continue to learn from both our successes and our failures.* We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages. Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case. * When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we'll take the cash flows. * We will share our strategic thought processes with you when we make bold choices (to the extent competitive pressures allow), so that you may evaluate for yourselves whether we are making rational long-term leadership investments. * We will work hard to spend wisely and maintain our lean culture. We understand the importance of continually reinforcing a cost-conscious culture, particularly in a business incurring net losses. * We will balance our focus on growth with emphasis on long-term profitability and capital management. At this stage, we choose to prioritize growth because we believe that scale is central to achieving the potential of our business model. * We will continue to focus on hiring and retaining versatile and talented employees, and continue to weight their compensation to stock options rather than cash. We know our success will be largely affected by our ability to attract and retain a motivated employee base, each of whom must think like, and therefore must actually be, an owner

A few years ago, the world's leading designer and manufacturer of office products decided that it needed an organizational overhaul. Coordination across product lines was poor. Design teams collaborated ineffectively. Key personnel were remote from customers. The company responded in part by reorganizing its work space, creating an office-free "village" where designers and architects could mingle and collaborate and customers could visit easily. Proximity does matter for promoting collaboration, and the space was conceptually compelling and visually appealing.

Who is JarGon?
JarGon is the customer service robot. He has no heart and isn't capable of love. He was created in a secret lab to frustrate customers, and Get Satisfaction is locked in an epic battle to protect the populace from this bumbling, metallic menace.

By RACHEL EMMA SILVERMAN

The status-update era is changing the annual performance review.


Peter and Maria Hoey
With many younger workers used to instant feedback-from text messages to Facebook and Twitter updates-annual reviews seem too few and far between. So companies are adopting quarterly, weekly or even daily feedback sessions.

Not surprisingly, Facebook Inc. exemplifies the trend. The social network's 2,000 employees are encouraged to solicit and give small nuggets of feedback regularly, after meetings, presentations and projects. "You don't have to schedule time with someone. It's a 45-second conversation-'How did that go? What could be done better?" says Lori Goler, the Palo Alto, Calif., social-networking company's vice president of human resources. More formal reviews happen twice a year.

For most companies, employee reviews are still an annual rite of passage. Some 51% of companies conduct formal performance reviews annually, while 41% of firms do semi-annual appraisals, according to a 2011 survey of 500 companies by the Corporate Executive Board Co., a research and advisory firm.

And increasing frequency may not make much of a difference if the performance appraisals are ineffective to begin with, say some. One academic review of more than 600 employee-feedback studies found that two-thirds of appraisals had zero or even negative effects on employee performance after the feedback was given. "Why is doing something stupid more often better than doing something stupid once a year?" asks Samuel A. Culbert, a professor at the Anderson School of Management at the University of California, Los Angeles and the co-author of the book "Get Rid of the Performance Review!"

Some firms have found that the traditional once-a-year review is so flooded with information-appraising past performance, setting future goals, discussing pay-that workers have trouble absorbing it all, and inst

Leading Outside the Lines: How to Mobilize the (In)Formal Organization, Energize Your Team, and Get Better Results, by Jon R. Katzenbach, a senior partner at Booz & Company, which publishes strategy+business, and Zia Khan, vice president for strategy and evaluation at the Rockefeller Foundation. They take a much more fine-grained approach to managing that is based on finding the right combination of the "logic of the formal" and the "magic of the informal."

In the three-part book, the authors focus on how individual managers can use informal connections and conversations to enhance the formal incentives and structures of a company - and, in the process, motivate individual performance and mobilize organizational change. Managers who can draw on both the formal and the informal as required have a high "organizational quotient" (OQ). This is a combination of intelligence quotient (IQ) and emotional intelligence (EQ) that balances disciplined and spontaneous actions, and rational and emotional thinking, depending on the demands of the situation.

The objective is consilience, which literally means a jumping together of the formal and the informal, a creative integration of "both...and" that harks back to Mary Parker Follett, the early-20th-century pioneer of organizational theory. This is the first of several evocative metaphors that the authors use to describe one of the most desirable but elusive phenomena in organizational life - those times when decisions, actions, and emotions jibe with strategic intent, when dynamic routines are constantly being improved upon, when employees are proud of their company, and when the company as well as the members of its ecosystem (partners, suppliers, and customers) all succeed.

Katzenbach and Khan stress that a managerial focus on the informal is not just a matter of being nice. People work and perform much better when they are treated with care and respect as individuals. The c

Scrum in 1 minute
Scrum is about getting back to the time when the company was small and everything was easy and ran smoothly. Back then projects were small, teams were small, releases were small and communication was easy. Best of all, we were efficient.

In Scrum we split our big project into small projects as we work on timeboxed iterations called sprints. We split our big team into small teams (still with all the skills we need) and launch often. If we are more than 20 employees we probably have a problem knowing what the other departments and customers are needing so let's bring someone into the team that can represent them. To help communications from the team to the rest of the company we have our plan and current status visible. The plan is called the sprint backlog and the status is shown on the scrum board. Here is an example:

Listen up, budding Masters of the Universe about to start boot-camp week at business school (and sign away $100,000 over two years). For all the wonderful instruction at places like Harvard, Wharton and my alma mater, the Stern School of Business at NYU, remember that making money involves so much more than columns in a spreadsheet and the ever shifting assumptions behind them. Keep in mind:

1. If it ain't broke, still fix it. One of the hardest decisions business owners have to make is turning their backs on cash when it's flowing. But that's exactly what you must have the courage to do at times to protect your franchise.

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2. Unless you end up at Goldman Sachs, forget what you learned about finance. "In a 12-year finance career with large respected companies," says one of my former classmates, who is finance chief for the unit of a large manufacturing firm, "I can count on two hands the number of IRR [internal rate of return], DCF [discounted cash flow] and NPV [net present value] analyses I have completed." He adds: "A career in corporate finance is nothing like what is taught in school. The job is largely to be the conscience of the business--expecting and demanding explanation for decisions and [being] well versed in most topics."

3. Take your financial models with a boulder of salt. "Too often people in business rely upon a model demonstrating projections out 15 to 30 years," says another biz-school mate, now a health care consultant. Really? In school we worked in more modest 3- to 5-year increments, with an understanding that anything beyond that was magical thinking. "Believe it or not," he went on, "I have seen some done out that far for deals [acquisitions] and often for public-private partnerships."

4. Overpromise and try to deliver. Underpromising and overdelivering may work on conference calls with Wall Stree

A key theme that emerges from the discussions is that many of these technologies start at a company's grassroots level. Because many of these tools are easy to implement, small groups of interested individuals can launch informal pilots to test their viability. "We have been very customer driven and quite ad hoc," one executive explains. "As we grow we are formalizing the process, but it is still driven by inspiration [and] passion from key stakeholders."

The adaptive organisation is the second-last chapter of Adapt: Why success always starts with failure, followed by Adapting and you. In the final chapters, Tim Hartford examines how groups and individuals can strive to adapt, and here are some highlights.

"So let's first acknowledge a crucial difference: individuals, unlike populations, can succeed without adapting." This statement explains a lot about what happens in organizations ;)

Case study of Timpson:

The first thing Timpson does when it buys another business is to rip out the electronic point-of-sale machines (there are always EPOS machines) and replace them with old-fashioned cash registers. 'EPOS lets people at head office run the business', explains John Timpson. 'I don't want them to run the business.' EPOS machines empower head offices but they make it harder to be flexible and give customers what they need.

Innovation is the lifeblood of our global economy and a strategic priority for all CEOs everywhere. We're all familiar with classic cases where revolutionary ideas upended industries and generated enormous wealth: the Apple iPod's outplaying the Sony Walkman; Starbucks' beans and atmosphere flooding out traditional coffee shops; Skype's using a strategy of "free" to unspool AT&T. But how about Reckitt Benckiser Group, the British consumer products giant (Lysol, Woolite, Clearasil), which looks to customers, among others, to find new methods to detect parasites?

greg

Great poster graphics from Get Satisfaction

Guy orders pizza for delivery at Apple Store, then brings his goat. Talk about exceeding expectations!

Our Work
Looking over the edge
Our work seeks to link the latest academic thinking from thought leaders across a variety of disciplines with the operational challenges and experiences of the members. The outcome is innovative service models, strategies, practices and standards that are operational.
To accomplish this, the Consortium hosts a number of activities the core of which are the Team Meetings. The Team Meetings are working sessions on specific topics. The speed with which the Consortium's work progresses is a function of the member's courage to try new and un-proven ideas. The Team Meetings are the place where we discuss these emerging ideas and learn from the members experiences.

Whole Service: Some service systems provide "whole service" to the people within them. For example, a city provides "whole service" for its citizens and visitors, including flow of things people need (e.g., transportation, water, food, energy, communications), development activities for people (e.g., buildings, retail, finance, health, education), and governance (e.g., laws, security, dispute resolution, etc.). To a lesser degree, but similar in kind, a luxury cruise-ship provides "whole service" to its passengers. Even old-time homestead farms and ranches, because they had to sustain families and hired hands sometimes over multiple generations with minimal external inputs, are to some degree providing "whole service" to those people living within them.

Holistic Service Systems: To first approximation, the study of holistic service systems is concerned with how well these entities provide "whole service" to the people within them. Whole service deals with a conjunction of three types of service, namely (1) flow of things people need, (2) development activities for people, and (3) governance for individuals and institutions. A holistic service system is defined as "a service system that can support the people within it, with some level of (1) completeness (quality of life associated with whole service - flows, development, and governance), (2) independence (from all external service systems),and (3) extended duration (longer than a month if necessary and in some cases indefinitely)." Noteworthy levels of completeness, independence, and extended duration of "whole service" are the three defining properties of holistic service systems.