Telling It Like It Is

THE ENTERPRISE--SOME TRUTHS ARE TIMELESS

THE ENTERPRISE--SOME TRUTHS ARE TIMELESS

BULLETIN: Geologists identified the exact earthquake location where the tectonic plates shifted under the Washington Area. The Obama administration has decided to name it Bush's Fault.

I'M AS GUILTY AS ANYONE OF TAKING FOR GRANTED WHAT WE HAVE IN AMERICA

As distressing as the unemployment and housing situation is and has been, there are people in places on this earth who have it much worse than we do.  Someone sent me this email a while back and I saved it for the right time.  Please watch the entire show.  It's short but memorable.  And than ask yourself:  Is your glass half empty, or half full?  Are you doing all you can to improve your life and that of others?  What else can you do?

Download BEST_EMAIL_OF_THIS_YEAR

IN CASE YOU HAVE NOT HEARD OF "LEADING BY EXAMPLE," (DON'T FEEL BAD OUR PRESIDENT HASN'T EITHER)

He flies into an airport somewhere in the midwest and hops into a brand new 1.1 Million $ bus, paid for by you and I, for a bus tour around the midwest, and after an hour or so, gets driven back to the airport for another flight, lands at another airport where another 1.1 Million $ brand new black bus is waiting for him and repeats all that until his midwest bus tour is done?  (Oh yes, and then he leaves on a 12 day vacation to Martha's Vineyard, to rest up from this campaign bus tour!

And don't forget, those brand new shiny black buses aren't driven to the location where they meet Obama.  Those buses are loaded up on one or more Air Force C-17s.  Then, they are flown to the destination ahead of Air Force-1.  And this is repeated for every campaign stop. On this 'bus tour', the Prez will lecture the 'little people' on how they need to live within their means and cut-back!  Remember when very recently Obama told that family man to go buy a Hybrid Van when the man said he couldn't afford to fill up his truck?

Obama's 'carbon footprint' must be as large as most cities by now.  All of this on the taxpayer's dime.  But remember, this is NOT designated as a campaign trip.  It is a "Meet with the people" trip only!  So that the DNC does NOT pay a cent for all of this.  And, the buses were manufactured in Canada!

IT MAKES ME WANT TO THROW UP!  (I omitted the photos of the buses--you've probably already seen them by now.)

ANOTHER SET OF TRUTHS THAT ARE SO RELEVANT TO THE USA RIGHT NOW

There is nothing like a little "parable" to teach others:

"YOU CANNOT MULTIPLE WEALTH BY DIVIDING IT" —Adrian Rogers 
An  economics professor at a local college made a statement that he had never failed a single student before, but had once failed an entire class.  That class had  insisted that Obama's socialism worked and that no one would be poor and no one would be rich, a great equalizer. 
   The  professor then said, "OK, we will have an experiment in  this class on Obama's plan". 
All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.
After the first test, the grades were averaged and everyone got a B.  The students who studied hard were upset and the students who studied little were happy.  

As  the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little. The second test average was a D!  No one was happy. 

When the 3rd test rolled around, the average was an F. 

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of  anyone else. 

All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed. 
Could it be any simpler than that?

Remember,  there is a "test" coming up.  The Presidential  election in 2012!

A WISE LEADER ONCE COMMENTED ON MATTERS SUCH AS WE ARE LIVING WITH TODAY IN AMERICA

"I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."    -- Winston Churchill

WILL SOMEBODY PLEASE EXPLAIN THIS TO OBAMA AND THE LIBERALS IN CONGRESS?

A PERSON'S BELIEFS AND BEHAVIORS ARE EMBEDDED IN THEM EARLY IN THEIR LIFE--AND SELDOM CHANGE MUCH

Many readers have asked me why I am so critical of President Obama.  It is true that at least half of the current deficit problem was inherited from his predecessor, George W. Bush, and the GOP controlled Congress--and several predecessors policies.  There is also plenty of blame to be shared for the causes leading up to the current economic recession and crisis.  

It doesn't matter which party was in office, spending for the past 10 years was far too high, reckless, irresponsible.  The only difference that makes me so critical of Obama (and the Democrats in Congress) is that he (and they) has actually increased the rate of spending—and achieved little or nothing with it—except to make government ever larger, more expensive and more oppressive, which should have been no surprise given Obama's record as a Senator and a Community Organizer.

Worst of all, is that he told us in his books what his beliefs were, and we either ignored them, or never bothered to read them at all.  

Consider this series of quotes from his own books.  If you have not read Audacity of Hope, these will be eye-openers. It was easy at first and then increasingly difficult to read considering his attitude toward everything American. There is a phrase he uses to describe his attitude toward whites.

He harbors a "COIL OF RAGE". (His words not mine.)

THIS  IS THE PRESIDENT OF THE USA --AND-- HE'S RUNNING AGAIN, IN CASE YOU HAVEN'T NOTICED!

Barack Obama, as a young man, and as a maturing adult was closely connected with known radicals, ranging from his Preacher Jeremiah Wright, to the well-known radical William Ayers, to the (now exposed) ACORN organization, and to the Chicago Democratic political machines--one of America's legendary "dirty politics" groups.

Everyone of voting age should read parts of Barack Obama's two books (ostensibly written by him, but suspected to be largely ghost written!): Don't buy  them, just get them from the  library.

  From Dreams From My Father:
  "I ceased  to advertise my mother's race at the age of 12 or 13, when I began to  suspect that by doing so I was ingratiating myself to whites."
  "I found a solace in nursing a pervasive sense of grievance and animosity against my mother's race."
  "There was something about her that made me wary, a little too sure of herself, maybe and white."
  "It remained necessary to prove which side you were on, to show your loyalty to the black masses, to strike out and name names."
  "I never emulate white men and brown men whose fates didn't speak to my own. It was into my father's image, the black man, son of Africa , that I'd packed all the attributes I sought in myself: the attributes of Martin and Malcolm, DuBois and Mandela."

  And  FINALLY ...
  From Audacity of  Hope:
  "I will stand with the Muslims should the political winds shift  in an ugly direction."

Much of the second half of "Audacity of Hope" reveals Obama's political and economic policy leanings.  Thus, they should have been no surprise. Barack Obama cleverly campaigned as a mainstream moderate, when in his heart he is a far-left liberal, with a grudge against both "whites" and "anyone with wealth."

THUS HIS ACTIONS AS PRESIDENT COULD HAVE EASILY BEEN PREDICTED

FINALLY, A GIFT TO READERS:  TURN UP YOUR SOUND, THEN CLICK ON THE WORDS, The Hero BELOW

IF YOU HAVE NEVER SEEN MICHAEL ISRAEL, YOU ARE IN FOR A TREAT—I HAVE AN I WATCHED IT ALL OVER AGAIN.

Painting the Flag 

You will watch spell-bound until the last drop of paint is put in place.  

Make sure your sound is turned up! 

The Hero

REMEMBER THE HEROES--THERE ARE ALL TOO FEW OF THEM WE ENCOUNTER IN OUR LIFETIME

WILL YOU BE SOMEONE'S HERO?  YOU CAN, YOU KNOW!

Best, JOHN

     

---------------------------------

Come see me on Forbes.com, and American Express'  Open Forum.com  Just search for Mariotti, and read...

 

John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net, http://mariotti.blogs.com/my_weblog/

BONUS READING 

Obama's 5 big mistakes

By David Frum, CNN Contributor

July 25, 2011 11:08 p.m. EDT

Editor's note: David Frum writes a weekly column for CNN.com. A special assistant to President George W. Bush from 2001 to 2002, he is the author of six books, including "Comeback: Conservatism That Can Win Again," and is the editor of FrumForum.

Washington (CNN) -- If the debt ceiling crisis were a movie, President Barack Obama would deserve an Oscar for his performance in the role of "the last reasonable man."

But of course the crisis is not a movie. The crisis is a deadly serious clash of ideas and interests. And there, the president has lost his way

Obama has lost his way so badly that even his core liberal supporters should be questioning whether they have got the right man in the job.

The indictment has five headings:

1. Obama has ceased to lead on the economy.

The management guru Stephen Covey famously said: "The main thing is to keep the main thing the main thing." Economic recovery is -- or should be -- the main thing. In 2009, Obama advanced a series of bold proposals to accelerate recovery: his big fiscal stimulus, the auto bailout and so on.

The president's proposals did not fail, exactly. But they did not work as advertised. The American economy limps weakly forward, leaving millions out of work.

During the Great Depression, President Franklin Roosevelt demanded from his administration "bold, persistent experimentation." By contrast, Obama put measures in place at the beginning and waited for them to yield results. And waited. And waited. And waited.

Finally, at the end of 2010, he added one more measure to the mix: a partial cut to the payroll tax, included as part of the deal that renewed the Bush tax cuts.

The payroll tax holiday is welcome if late. But it was small (2 percentage points out of the 12.6% paid by workers and employers) and was almost immediately offset by the surge in oil prices after the so-called Arab Spring. That surge took back from workers every dollar of the $110 billion in tax relief delivered by the payroll holiday.

And since December, Obama has surrendered entirely to the claim that we can somehow fix the economy by fixing the debt problem. The truth is the opposite: Fix the economy, and the debt problem will shrink to much more manageable proportions.

2. Obama does not effectively use the domestic powers of the presidency.

Talk radio shows accuse Obama of acting like a Third World dictator heading a thug government. That's a devilishly ingenious line of attack on a president who actually makes weaker use of his domestic power than any since Jimmy Carter.

Example: The U.S. recovery that commenced in the summer of 2009 stalled in the spring and summer of 2010. Many economists blame the stall on the Federal Reserve's April 2010 decision to stop providing additional monetary stimulus for fear of igniting inflation. Those inflation fears proved utterly misplaced, and in late 2010 the Federal Reserve resumed its monetary stimulus.

Where was the president during this crucial debate? AWOL.

Yes, yes, the Federal Reserve is independent and all that. But other presidents have succeeded in making their views known and respected on monetary policy. Obama had a unique chance to influence the debate, because through the summer of 2010 two of the seven seats on the Fed's Board of Governors stood vacant. The president nominated expansion-minded governors to fill the seats. The nominations were put on hold by Republican senators. And what did the president do? Did he take to the airways to demand action on his nominees? Did he punish the senators by stopping federal projects in their states? Did he fill the seats with recess appointments?

To borrow the answer from Fred Armisen's imitation of Obama on "Saturday Night Live": "I'm seeing two big accomplishments: jack and squat."

3. Obama cannot communicate empathy for Americans in economic distress.

Remember that video of the Obama supporter expressing her exhaustion and disappointment with the president's record of help to the middle class?

Watch it again, and pay careful attention to what the president does. He first makes a perfunctory effort to connect with the woman in front of him as a fellow-parent. Then he rattles off a list of small programmatic changes: in the student loan program, in credit card regulation, none of them especially relevant to the woman in question. He finishes with a "stay the course" message that must ring hollow in the ears of all those for whom the "course" means unemployment of 38 weeks or longer.

Notice what the president does not do. He does not thank his questioner for defending him. He does not ask her questions of his own. He is so determined to sell his narrative, that he cannot hear or honor her fears. And indeed the questioner did lose her job a few weeks after the town hall meeting.

For two years, Obama's economic message has been "recovery is around the corner." He has delivered this message from factory floors and restaurant tables. He has not spoken in front of groups of unemployed; he has not spoken at welfare offices.

Obama's disconnect from those in distress may explain the remarkable collapse of his support among younger whites, once one of his most important groups of supporters. Pew reports a 10-point surge in Republican identification among whites under age 30 since 2008. These are some of the voters hardest hit by this recession. They are voters to whom this president has spoken least.

4. Obama over-relied on banks and bankers.

Like President George W. Bush before him, Obama took bold and necessary action to save the U.S. financial system in the early spring of 2009. A lot of ugly things were done. A lot of reckless people got away scot-free -- in fact, richer than ever. But apocalypse was averted, so congratulations all around. Afterward though: Where was the reckoning? The administration remained focused on reassuring bankers long after it had finished the job of saving the banks.

Yes, Congress did pass a law, Dodd-Frank, that addressed some of the worst abuses of the 2000s. For example, Dodd-Frank exposes ratings agencies to private lawsuits for "knowing or reckless" failures to conduct proper investigations of the bonds they rate.

Unless you follow banking law closely, however, you would have little idea that any preventive measures have been taken against the next bubble. What got the headlines instead was the president's appointment of one high-profile banker, William Daley, as his chief of staff -- and a rumor that he intended to appoint another as his second secretary of the Treasury, Jamie Dimon of JPMorgan Chase.

Little enough justice was done. Almost none was seen to be done.

5. Obama is not a good negotiator.

It's really striking that any time the president inserts himself into a negotiation, he ends up with zero results and all parties mad at him. The Middle East may be the most extreme case, but there are domestic counterparts, too.

When he negotiated the renewal of the Bush tax cuts in 2010, why didn't he get himself an increase in the debt ceiling at the same time? The tax cuts expanded the deficit beyond what it otherwise would have been. Republicans dearly wanted the tax cuts extended and would have paid for them. But no.

In this round of debt negotiations, the president has drawn red lines. He has threatened to veto a small increase in the debt ceiling, one that would force him to return to the argument before the election in 2012. By contrast, he has not threatened to veto debt-ceiling measures that cut too deeply into social programs. His red lines are drawn for his political advantage -- not to protect his core supporters' values and interests. His red lines are not theirs.

Whether it was health care or the deficit or now the debt ceiling, direct encounters between Obama and his Republican opposite numbers have always ended badly for the president. Yes, the president faces unusually extreme and intransigent opposition. But that's a description of the difficulty, not an excuse for failure. Presidents win negotiations when they can mobilize the public behind them. That was Ronald Reagan's secret weapon in 1981. It has never been Barack Obama's. And the results are as we all see.

The opinions expressed in this commentary are solely those of David Frum.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE ENTERPRISE--IMPROVE PROFITABILITY AND REDUCE RISK?

THE ENTERPRISE--IMPROVE PROFITABILITY AND REDUCE RISK?

 

NO, THAT TITLE IS NOT A MYTH, NOT IMPOSSIBLE—READ THIS EDITION OF THE ENTERPRISE AND LEARN HOW TO DO THAT AND MUCH MORE.

 

FIRST, SOME FEEDBACK FROM AN AUTHORITATIVE SOURCE ON SOME OF MY PRIOR "OBSERVATIONS" "I have lived abroad for nearly all my adult life, working all around the world. Now is the absolute single worst the USA has ever appeared in the eyes of foreigners. We are stinking up the planet." That about says it all. And we must wait for another 17 months to make the necessary changes to start regaining America's stature, prosperity and rebuilding for the future. We are in a "deep hole." It will take a superb leader, and the support of both Houses of Congress to get the job done. It can be done. It must be done. Let's make sure it IS done.

 

NEXT: THE CHINESE CONSPIRACY IS COMING TRUE! For a scary read, check out Vanity Fair's Sept. issue: "Enter the Cyber-Dragon." The article is chilling in its accuracy and sounds so much like what I wrote in The Chinese Conspiracy that one friend suggested I list the book as non-fiction! I've had several others tell me that what's going on with hackers and especially the recent (alleged) Chinese attacks sounds exactly like what I described in The Chinese Conspiracy. What? You have not read The Chinese Conspiracy yet? Shame on you. Buy 2-3 copies and give a couple as gifts. It's available on Amazon.com and Barnes & Noble (bn.com) and available in Kindle and Nook versions. If you want a specially signed personal or gift copy--Hard Cover or Paper Back—you will need to get that from me. Send me an email, and I'll give you the details.

 

THE OBAMA REGULATORY LANDSLIDE CONTINUES--NO RECOVERY WITH THIS GUY IN OFFICE FROM KIPLINGER WASHINGTON REPORT: Coming soon: Tougher limits on ozone in the atmosphere. The feds want to make utilities, manufacturers and others cut emissions of pollutants enough to hit a new ozone standard of about 69 parts per billion, down from 75 ppb today. Affected businesses will argue that the rule will prompt factory closures and job losses. Compliance with a tighter ozone cap is likely to spur some firms to shift operations overseas. Even a modest reduction in the 2008 limit set by the Bush administration would probably put many regions out of compliance. That would trigger expensive state air quality remedies. Air quality regulators will try to soften the impact of stricter ozone caps by offering flexibility in implementing the standard and extending deadlines. Mitigating steps won’t go far enough...it’ll still be a tough pill to swallow.

 

Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. —Ronald Reagan

 

NOW, ON TO THIS WEEK'S TOPIC: ----------------

IMPROVE PROFITABILITY AND REDUCE RISK--------------------

THE COMPLEXITY CRISIS

It is now 3 years since I published The Complexity Crisis sounding the "alarm" about how companies were creating their own problems, with the best of intentions, searching for growth in no growth markets, confusing proliferation with innovation, and overlooking hidden costs all over the place. These errors have not impacted the top line (revenue) as much as the bottom line (net profit), but make no mistake about it, both have been adversely affected by unmanaged complexity. The issue now is what to do about that.

 

PROBLEM SOLVING IN TWO STEPS

As in solving any problem, two steps are necessary: 1) Understand and define the problem; 2) Solve the problem. So many companies agree that complexity is a problem and try to jump directly to step 2. AS a result, they solve a little of the problem, sometimes create other problems (as Walmart did by cutting SKUs so radically), and fail to solve the problem at its source--the business plan, business model and the senior executives--CEO, COO, President, General Managers, Managing Directors, or whatever they are called.

 

Since the supply chain function catches the brunt of the problems, complexity is often recognized there first. Unfortunately, trying to fix complexity problems at the supply chain level is like trying to "stomp out a firebug's fires," What needs to be done is to find out who is setting those fires and take away their matches. For a more graphic example, trying to fix complexity from the middle of the supply chain is like cleaning up in the middle of a circus parade; someone must still deal with the remaining manure from the elephants and horses.

 

START AT THE RIGHT PLACE

The place to fix complexity is at its source—the executive suite, especially Sales, Marketing and New Product Development. This is where complexity is originated. This is where it must be managed first and foremost. Once that group understands how it creates complexity by adding new SKUs, new customers, new markets, etc., then the supply chain folks must do their jobs. They must resist the urge to proliferate suppliers and distribution sites, and learn to live with the reality that forecasts will be wrong, and customer demands will be unreasonable. There are ways to manage all of these places where complexity is born and spread. I cover many of them in The Complexity Crisis and space prohibits reproducing a whole book's contents here. Thus I will only make a few important points to consider.

 

PARETO WAS RIGHT, AND OPTIMISTIC

Pareto was right when he formulated his 80/20 rule (also known as the Power Rule). 80 percent of the items usually contribute only 20% of the benefits--and vice versa. Real world experience and research says he was an optimist. I have encountered companies where it was 95/5; and after cleaning it out, in 3 years, it was back to 95/5. Complexity is just like weeds that come back in the garden in a surprisingly short time. Worse yet, a couple of fine books illuminate this issue further. In Angel Customers & Demon Customers, Selden and Colvin point to studies where the figures were 150/20 and 20/150. The top 20% of customers were responsible for 150% of the company's value added, and the bottom 20% destroyed a similar 150% of value--unless corrective action was taken.

 

TOO MANY IS SIMPLY TOO MANY

Unbelievable? Not really. Consider the time and effort consumed by unprofitable customers, buying unprofitable assortments of products and still demanding costly services and responsiveness. You have all known some of those. They are company killers. In The Paradox of Choice Barry Schwartz explodes the myth that more choices increase sales, proving just the opposite. There is an optimum array of choices that maximize sales and profits and going beyond that assortment simply confuses and befuddles customers and reduced sales and profits both.

 

PROOF COMES FROM GM 2008-2011 Most Americans have followed General Motors over the past few years, including the government funded bankruptcy (arguably not even necessary--but that's another story). Few have considered what really turned about GM. Of course it was getting rid of impossibly expensive pensions and work rules with its UAW union members.

However, I contend that the two pivotal changes that turned around GM were: 1) The right people: Bob Lutz driving new product development, and Ed Whitacre driving everything else. Did they do it all themselves? Of course not. But they did a lot of it. Lutz chronicles some of it in his recent book, The Car Guys vs. the Bean Counters, in which he describes some of the fundamentals in the pursuit of excellence in any endeavor. Whitacre was a very successful CEO, who knew, above all else, that his job was to set priorities, make plans and then assure the plans were carried out promptly and properly. He did this. 2) The dramatic reduction in complexity which allowed GM to focus on fewer of everything, and do it all better. In this case, the numbers tell the story far better than words. Simplifying the GM product line was the first step. Simplifying the number of plant locations (and dealerships) was another big step. These simplifications ripple through everything else: fewer employees are needed, both in production and distribution and in administration. Moreover, the cars GM is producing now are much better and more desirable than the ones circa 2007. And GM is doing it with "fewer faces in fewer places," one of the keys to reduced complexity.

THE NUMBERS TELL THE STORY

                                                                GM2008    GM 2011      % CHANGE

Number of car "brands" (badges): 8                  4                      -50

Number of car models:                      86              49                      -43

Number of car plants in the US      47              32                      -32

Number of US union employees 62,000      49,000             -21
Number of Global employees      263,000      208,000        -12

Number of Cars produced      2,200,000      2,400,000      +9

--Cars per employee/year              8.64              11.53              +33

Cost of Sales ($ billions)                  $43.5          $33.8             -22

Sales Revenue ($ billions)               $38.2          $39.4              +3

Profit/Loss ($ billions)                     -$15.5          +$2.5              huge

--Sales per employee                      $145,000      $189,000      +31

--Profit per employee                      -$59,000      +$12,000      huge

 

ANY COMPANY CAN DO WHAT GM DID--WITH VERY POSITIVE (IF NOT QUITE THIS MUCH) IMPROVEMENT IN PROFITS--SIMPLIFY

Not long after I published The Complexity Crisis, I was contacted by Ian Dover, who had founded the Simpler Management Institute in Australia. Ian's approach was very similar to mine, but coming from the other direction: Employing simplicity vs. removing complexity. One of his early messages to me summarized the Simpler Business Approach quite succinctly in five steps:

1. THINK 80/20 (we agreed on this one)

2. Solve problems CONSISTENTLY and SIMPLY (start with NOW--a current situation diagnosis, define WHERE—the business should be in 3-5 years, then focus on HOW—to plan strategies and advance toward goals

3. Understand CUSTOMER VALUE (ties directly with my prior book The Shape Shifters) Customer value is the criteria for success, and simply comes from the mind of the customer.

4. Remove the main CONSTRAINTS in the business processes (removing obstacles is essential, and the Theory of Constraints was part of Eli Goldratt's seminal book, The Goal.)

5. SIMPLIFY BEFORE AUTOMATING (one of the most common errors of haste, is to automate a flawed process creating certain failure.) Remember the two steps of problem solving?

To learn more, you can visit his web site which offers a wide variety of resources: http://simplerbusiness.com/ If you decide to call him (he is on Skype), remember Australia is on the other side of the world, so confirm both the time and date and "whose day it is" (International Date Line comes into play.)

 

IT WORKS--HERE, THERE, EVERYWHERE I have found that learning to manage complexity, whether you simplify (according to Ian's approach, proven by GM's numbers--and by Apple's success) or whether you design a system to allow the use of complexity as a competitive tool (Evidenced by amazon.com's vast assortment approach, or Subway's made-to-order sandwiches using relatively few ingredients.) Eliminates numerous complexity reduces hidden costs of complexity--forecast errors, inventory obsolescence, excessive overhead/SG&A, high variances, customer deductions/allowances, and more.

Using complexity depends on structuring the systems & processes with physical facilities with human organization to match, in a way that minimizes the damaging effects of too much variety, and capitalizes on customization benefits for competitive advantage. Either approach reduces risks--of error, of failure, of waste, and many, many more.

 

NOW YOU CAN EVEN MEASURE COMPLEXITY MORE EASILY

In The Complexity Crisis I developed a single metric, the Complexity Factor, with which a company can benchmark against its prior ways of operation. I also added some "simple" measures (Ian likes simple measures) like the ones shown above: production per employee, sales per employee, etc. Now thanks to the reach and power of the Internet, there is a far more rigorous and elegant solution available.

A recent contact with Jacek Marczyk and his firm, Ontonix (located in Como, Italy), opened a whole new realm of ways to assess complexity and risk associated with complexity. Using Ontonix's "Rate-A-Business" tools, even small businesses can assess their level of complexity. So can large ones, and Ontonix has more powerful versions for more larger companies and more sophisticated situations. There is even a "FREE TRIAL VERSION" http://www.rate-a-business.com/ , which I encourage you to visit and try. If you decide to call Jacek, Italy is 6+/- hours ahead of the USA (depending on DST here), and he is also on Skype. To learn more, check out Jacek's book "New Theory of Risk and Rating", which is available on amazon here: http://www.amazon.com/New-Theory-Risk-Rating-ebook/dp/B004CLYICO/ref=sr_1_1?ie=UTF8&m=A3KSZ402CI2EG1&s=digital-text&qid=1290073198&sr=1-1

 

THAT'S IT FOR NOW--MANAGE COMPLEXITY AND IMPROVE PROFITABILITY—WHILE REDUCING RISKS

Too good to be true? NO. It all works. This is not theory. This is based on practice and use in the real world of business on at least three continents: North America, Europe and Australia. It won't be long before Asia discovers the power of complexity management. Will you get there first?

Will you decide to enlist the help you need to IMPROVE YOUR PROFITS & reduce your risks? To make it easy for you to find us, here's our contact information:

Ian Dover: [email protected] Australia http://simplerbusiness.com/

Jacek Marczyk: [email protected] Europe/Africa http://www.ontonix.com

John Mariotti: mailto:[email protected] North America http://shape-shifters.com/

 

WHAT ARE YOU WAITING FOR? THIS TOUGH TIME IN THE GLOBAL ECONOMY IS A PERFECT TIME TO MANAGE COMPLEXITY

To get the best results the fastest possible way, get help. Everyone thinks "they can do it themselves"—and they can—but they'll just go through a learning curve we have already been through. There's no reason to learn by trial and error. You furnish the information and context; we'll furnish the objectivity and methods. We are so confident that this works, we are willing to work out a contingency fee deal, which reduces your up front cash commitment substantially. Well, what ARE you waiting for?

 

THAT'S ALL FOLKS!

BEST, JOHN

 

Author of the award winner: The Complexity Crisis & The Chinese Conspiracy (a novel) Come see me on Forbes.com, and American Express' Open Forum.com Just search for Mariotti, and read... John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959 http://www.mariotti.net, http://mariotti.blogs.com/my_weblog/

MUST READ "Enter The Cyber-Dragon: http://ping.fm/wAWOO THE CHINESE CONSPIRACY for real

THE ENTERPRISE--WHAT MIGHT THE FUTURE HOLD FOR THE USA?

DO YOU WONDER WHAT WILL HAPPEN NEXT?  READ THIS, AND THEN YOU MIGHT RECONSIDER YOUR OPINION--OR NOT?

http://www.openforum.com/articles/the-power-and-danger-of-self-fulfilling-prophecies

MY FORBES POST LAST WEEK DREW LOTS OF COMMENTARY--POSITIVE AND NEGATIVE--BUT MORE POSITIVE 

If you have not read it, here is the link to it.  Many folks who agree with me are passing it around.  One person who didn't wished me to "Die already."  NOT a nice thought.  http://blogs.forbes.com/prospernow/2011/08/06/a-failed-presidency-the-american-problem/

IOWA DEBATE "RESULTS"--ONE PERSON'S OPINION (MINE)

1. Mitt Romney--Still the best, the "adult in the room," who laid out seven steps in his first answer that were better than any of the others.  Showing more "fire" which is what he needs to do. A good line about "not willing to eat Obama's dog food."

Rick Perry--absent--still to be evaluated, but now a declared candidate;

The others--should save their money and time.  They have no chance.

2. Newt Gingrich--probably unelectable but the crowd favorite as he laid it onto the media--still one of the smartest guys in the room. It would be nice to find him a role--but at his age, what?

3. Jon Huntsman--calm, controlled, mature, used a "less is more" answering style

4. Michelle Bachman--(won "straw poll" today) sometimes feisty, sometimes calm/cool, sometimes charming, probably still not electable, but VP potential depending on who tops the ticket

5. Ron Paul-- (second in straw poll) alternately brilliantly wise and ludicrously extreme--no chance but will add useful "meat" to the platform

6. (3 way tie) Herman Cain, Rick Santorum, who griped about not enough air time, but had plenty for what he had to say (good tussle with Paul about Iran) and Tim Pawlenty--

Cain just didn't have enough to add beyond what he's said before; Pawlenty had a real argument with Bachman and he came out losing face, but he had the best comedy line--"if anyone can show me a written plan of Obama's I'll come over and cook them dinner--or mow their lawn--but Mitt, only up to one acre."

John Bolton is talking about getting in but why?  Does he want a shot at a VP spot?  There are a couple of other "candidates," but when I can't even remember their names--count them out.

Bright spots for the future: Marco Rubio--the bright new face, but not running; Paul Ryan--the knowledgeable numbers guy but not running; Chris Christie--the NJ tough guy,  but not running

REMEMBER IOWAN ARE NOT CLOSE TO "MAINSTREAM AMERICA"--MUCH MORE CONSERVATIVE, RELIGIOUS, AND TRADITIONAL

2011 Federal Budget Deal--Underwhelming! Federal Budget: $3,820,000,000,000 (3.82 Trillion) Income: $2,170,000,000,000 (2.17 Trillion) New Debt: $1,650,000,000,000 (1.65 Trillion) Amount Cut: $38,500,000,000 (38.5 Billion) – about 1% of the total budget.     Harry Reid is calling this a “historic amount“. The President said it is a “historic deal”. John Boehner simply said, “We’ve come to an agreement”.     Let’s Put This In Perspective. It helps me to think about these numbers in terms that I can relate to.     Let’s remove nine zeroes from those numbers and pretend this is a monthly household budget for the fictitious Jones family.     Amount the “Jones`s” family spent this month:  $3,820  ($45,000/yr.) (or, if you prefer, $7,640--$90,000/yr.)    Total income for the “Jones`s” family this month: $2,170  ($25,000/yr.) (or, if you prefer, $4340--$50,000/yr.)    Amount of new debt added to the credit card this month: $1,650 (or if you prefer $3,300)    Outstanding balance on the credit card: $14,271 (This represents our national debt). (or if you prefer, $28,542)    So last week, the “Jones’s” sat down at the kitchen table and agreed to cut $38  (or if you prefer, $76) from their monthly budget.  A historic amount!  R U Impressed?     Me neither!!!!

US PRODUCTIVITY DROPS--NOT A GOOD THING!

The stalled recovery has cut deeply into the productivity of U.S. companies.

Productivity, measured as output per hour of work, fell at a 0.3% annual rate in the second quarter from the first quarter, the Labor Department reported Tuesday. Revised figures showed that productivity fell 0.6% in the first quarter, down from an earlier reported gain of 1.8%.

"We're producing less with more workers," said IHS Global Insight economist Patrick Newport. "That's not a good thing."

Productivity is a staple of economic growth. If workers aren't producing more and better goods and services, then over time the economy can grow no faster than the labor force does, leaving wages stagnant. For productivity to contract when the economy is weak and when policymakers have scant inclination or ability to boost growth is especially unsettling, Mr. Newport said.

The one positive he saw in the report was that it may indicate businesses have streamlined so much they "may be working their existing work forces too hard." That could be good for the job market, because if demand picks up, companies may have to hire to meet it.

The problem is that amid a rising risk of the economy re-entering recession, companies are becoming less certain that the demand will be there. Moreover, climbing labor costs are giving businesses another reason to hold back on hiring. The Labor Department said unit labor costs rose at a 2.2% annual rate in the second quarter. That followed a 4.8% increase in the first three months of 2011.

WHY DO WE HAVE A JOBS PROBLEM IN AMERICA--HOW ABOUT THIS FOR A START

Regulation Nation: The Obama administration proposed 229 new rules in July and finalized another 379. Sen. John Barrasso says that 31 days of regulatory excess will cost the economy $9.5 billion. The madness must stop. Barrasso, a Wyoming Republican, issued his regulations memo last week. If he's on the mark, federal red tape will add as much as $114 billion in new costs to the economy a year — no small hit.  With this in mind, Republicans are planning to make a hard run at regulatory reform next month when they will reportedly press the Reins Act.  Reins stands for "regulations from the executive in need of scrutiny." It would require congressional approval of all regulations that have an expected yearly economic impact of more than $100 million. Opponents argue that it would, in the words of Washington Post blogger Ezra Klein, "make regulating virtually impossible."  Yes, and that's exactly the point.

I GUESS I AM NOT THE ONLY ONE WHO TOOK A VERBAL SHOT AT OBAMA THIS WEEK.

=================

Is Obama Smart? A Case Study In Stupid Is As Stupid Does.  by Bret Stephens  The Wall Street Journal, 8.9.11

The aircraft was large, modern and considered among the world's safest. But that night it was flying straight into a huge thunderstorm. Turbulence was extreme, and airspeed indicators may not have been functioning properly. Worse, the pilots were incompetent. As the plane threatened to stall they panicked by pointing the nose up, losing speed when they ought to have done the opposite. It was all over in minutes

Was this the fate of Flight 447, the Air France jet that plunged mysteriously into the Atlantic a couple of years ago? Could be. What I'm talking about here is the Obama presidency.

When it comes to piloting, Barack Obama seems to think he's the political equivalent of Charles Lindbergh, Chuck Yeager and—in a "Fly Me to the Moon" sort of way—Nat King Cole rolled into one. "I think I'm a better speech writer than my speech writers," he reportedly told an aide in 2008. "I know more about policies on any particular issue than my policy directors. And I'll tell you right now that I'm . . . a better political director than my political director."

On another occasion—at the 2004 Democratic convention—Mr. Obama explained to a Chicago Tribune reporter that "I'm LeBron, baby. I can play at this level. I got game.

Of course, it's tempting to be immodest when your admirers are so immodest about you. How many times have we heard it said that Mr. Obama is the smartest president ever? Even when he's criticized, his failures are usually chalked up to his supposed brilliance. Liberals say he's too cerebral for the Beltway rough-and-tumble; conservatives often seem to think his blunders, foreign and domestic, are all part of a cunning scheme to turn the U.S. into a combination of Finland, Cuba and Saudi Arabia.

 I don't buy it. I just think the president isn't very bright.

Socrates taught that wisdom begins in the recognition of how little we know. Mr. Obama is perpetually intent on telling us how much he knows. Aristotle wrote that the type of intelligence most needed in politics is prudence, which in turn requires experience. Mr. Obama came to office with no experience. Plutarch warned that flattery "makes itself an obstacle and pestilence to great houses and great affairs." Today's White House, more so than any in memory, is stuffed with flatterers.

Much is made of the president's rhetorical gifts. This is the sort of thing that can be credited only by people who think that a command of English syntax is a mark of great intellectual distinction. Can anyone recall a memorable phrase from one of Mr. Obama's big speeches that didn't amount to cliché? As for the small speeches, such as the one we were kept waiting 50 minutes for yesterday, we get Triple-A bromides about America remaining a "Triple-A country." Which, when it comes to long-term sovereign debt, is precisely what we no longer are under Mr. Obama.

Then there is Mr. Obama as political tactician. He makes predictions that prove false. He makes promises he cannot honor. He raises expectations he cannot meet. He reneges on commitments made in private. He surrenders positions staked in public. He is absent from issues in which he has a duty to be involved. He is overbearing when he ought to be absent. At the height of the financial panic of 1907, Teddy Roosevelt, who had done much to bring the panic about by inveighing against big business, at least had the good sense to stick to his bear hunt and let J.P. Morgan sort things out. Not so this president, who puts a new twist on an old put-down: Every time he opens his mouth, he subtracts from the sum total of financial capital.

Then there's his habit of never trimming his sails, much less tacking to the prevailing wind. When Bill Clinton got hammered on health care, he reverted to centrist course and passed welfare reform. When it looked like the Iraq war was going to be lost, George Bush fired Don Rumsfeld and ordered the surge.

Mr. Obama, by contrast, appears to consider himself immune from error. Perhaps this explains why he has now doubled down on Heckuva Job Geithner. It also explains his insulting and politically inept habit of suggesting—whether the issue is health care, or Arab-Israeli peace, or change we can believe in at some point in God's good time—that the fault always lies in the failure of his audiences to listen attentively. It doesn't. In politics, a failure of communication is always the fault of the communicator.

Much of the media has spent the past decade obsessing about the malapropisms of George W. Bush, the ignorance of Sarah Palin, and perhaps soon the stupidity of Rick Perry. Nothing is so typical of middling minds than to harp on the intellectual deficiencies of the slightly less smart and considerably more successful.

But it takes actual smarts to understand that glibness and self-belief are not sufficient proof of genuine intelligence. Stupid is as stupid does, said the great philosopher Forrest Gump. The presidency of Barack Obama is a case study in stupid does.

=================

 

NOW YOU'RE TALKING--WHEN YOU CAN IDENTIFY THEM, FIGHT BACK

After the hacking gang Anonymous took credit for defacing Syria's Ministry of Defense website, a Syrian group today retaliated by posting gruesome photos on
Anonymous' embryonic social network.  http://cwonline.computerworld.com/t/7482426/886955522/525040/0/

PRESIDENTIAL PROPHECIES--OBAMA ON THE DEBT CEILING

"The fact that we are here today to debate raising America 's debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."   -- Senator Barack H. Obama, March 2006

SO MUCH FOR THIS WEEK. 

There is little doubt that Barack Obama is failing.  The longer he stays in office and keeps his job killing minions in the agencies (EPA, NLRB, CPSC, et. al. and the Justice Dept.) the worse off American business will be.  Take heart in the fact that yet another Judge ruled parts of Obamacare as unconstitutional.  All we can do is throw every possible obstacle as Obama tries to change America fundamentally--in the wrong direction.

That's all--all the best for August, 

JOHN

---------------------------------

Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. 
—Ronald Reagan 

Author of the award winner: The Complexity Crisis &  The Chinese Conspiracy (a novel) 

Come see me on Forbes.com, and American Express'  Open Forum.com  Just search for Mariotti, and read...

John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net, http://mariotti.blogs.com/my_weblog/

 

 

 

Cyber-Warfare Is Future of International Conflict http://ping.fm/syAFj
Have you read The Chinese Conspiracy yet?

Fight against hackers predicted to cost $130 Billion (in USA) this year. And it's growing. Get & read THE CHINESE CONSPIRACY to learn more

THE ENTERPRISE--WATCH/LISTEN & THINK

THIS EDITION WILL REQUIRE YOU TO WATCH A COUPLE OF VIDEOS, READ A COUPLE OF POSITIONS, AND THEN THINK ABOUT IT ALL.  

I think the time you spend doing this will be worth it.  Reserve about 30 minutes (depending on how fast you read).

--A MUST WATCH--PASS THIS ON: IF YOU HAVE NOT SEEN OR HEARD MARCO RUBIO--HERE IS A GOOD SAMPLE--HE IS A "RISING STAR" IN THE GOP

http://www.patriotactionnetwork.com/forum/topic/show?id=2600775:Topic:4994038&xgs=1&xg_source=msg_share_topic

--FED UP?  I AM!  WATCH THIS VIDEO:  HE SPEAKS, AND SAYS WHAT WE ALL FEEL.  PASS IT ON.  THEN GET READY FOR 2012!

http://www.youtube.com/watch?v=8SGyVNippvA&feature=youtube_gdata_playe

ON THE OTHER HAND....THINK ABOUT THESE POINTS!

--SIMPLY RIDICULOUS? OK, SO THE DEBT CRISIS WAS RESOLVED--BUT WAS IT DONE WELL?

But how ugly was that process?  VERY UGLY!  How much confidence does it give you in many of the people we have elected. NOT TOO MUCH!   

--BUT--John Boehner did pretty well considering the conflicts and challenges he faced.  He is not as glib as Obama, but he is solidly headed in the right direction.

It sure is a "compromise" and in many people's minds, not a very good one--BUT IT'S WAT BETTER THAN WHAT OBAMA WANTED!  

With a $14 Trillion debt, that we are adding to at the rate of $1 Trillion per year, we will form a committee to find $2.4 Trillion over the next ten years to cut. 

--IS THAT TOTAL INSANITY? OR AS OUR OH SENATOR, ROB PORTMAN POINTS OUT, IS THIS ACTUALLY "PROGRESS!"

Download Rob Portman: Make the Dollar-for-Dollar Rule Permanent - WSJ.com

--JOBS IN AMERICA: A WONDERFUL MESSAGE AND GREAT PRODUCTS--CHECK IT OUT--"DOING IT RIGHT"

Download Amessagefromdavidmacneil

--PERSONAL NOTE: IF YOU ARE OVER 60, YOU'LL GET THIS—IF YOU AREN'T, WAIT A FEW YEARS AND YOU'LL REMEMBER IT & UNDERSTAND

The older we get the more truth we see in this little narrative:

One day I had lunch with some friends. Jim, a tall, balding golfer type about 80 years old, came along with them---all in all, a pleasant bunch. When the menus were presented, we ordered salads, sandwiches, and soups, except for Jim who said, "Ice Cream, please. Two scoops, chocolate.

I wasn't sure my ears heard right, and the others were aghast. "Along with heated apple pie," Jim added, completely unabashed.  We tried to act quite nonchalant, as if people did this all the time.. But when our orders were brought out, I didn't enjoy mine.

I couldn't take my eyes off Jim as his pie a-la-mode went down. The other guys couldn't believe it. They ate their lunches silently and grinned.  The next time I went out to eat, I called and invited Jim.. I lunched on white meat tuna. He ordered a parfait.

I smiled. He asked if he amused me. I answered, "Yes, you do, but also you confuse me.  How come you order rich desserts, while I feel I must be sensible? He laughed and said "I'm tasting all that is Possible.

I try to eat the food I need, and do the things I should. But life's so short, my friend, I hate missing out on something good.  This year I realized how old I was. (He grinned) I haven't been this old before."

"So, before I die, I've got to try those things that for years I had ignored.  

• I haven't smelled all the flowers yet.
• There are too many trout streams I haven't fished. 
• There's more fudge sundaes to wolf down and kites to be flown overhead.
• There are too many golf courses I haven't played. 
• I've not laughed at enough the jokes, or played with enough kids. 
• I've missed a lot of sporting events and potato chips and cokes. 
• I want to wade again in cool water and feel ocean spray on my face. 
• I want to sit quietly in a country church once more and thank God for His grace.
• I want peanut butter every day spread on my morning toast. I want un-timed long distance calls to the folks I love the most.
• I haven't cried at all the movies yet, or walked in the morning rain. I need to feel wind on my face. I want to be in love again.

So, if I choose to have dessert, instead of having dinner, then should I die before nightfall, I'd say I died a winner, because I missed out on nothing. I filled my heart's desire. I had that final chocolate mousse before my life expired."

With that, I called the waitress over. "I've changed my mind, " I said. "I want what he is having, only add some more whipped cream!"

This is my gift to you - We need an annual Friends Day! If you get this twice, then you have more than one friend. Live well, love much & laugh often - Be happy.

SHARE THIS WITH YOUR FRIENDS.  Be mindful that happiness isn't based on possessions, power, or prestige, but on relationships with people we like and respect.   Remember that while money talks, CHOCOLATE ICE CREAM SINGS!

This is why we retirees get together with each other so often.  And should do it even more!!

DO YOU NEED A LAUGH THIS WEEK?  I LOVE "ITALIAN STORIES."

 An elderly Italian man who lived on the outskirts of Rimini, Italy, went to the local church for confession.

When the priest slid open the panel in the confessional, the man said, "Father ... During World War II, a beautiful Jewish woman from our neighborhood knocked urgently on my door and asked me to hide her from the Nazis. So I hid her in my attic."

The priest replied: "That was a wonderful thing you did, and you have no need to confess that."

"There is more to tell, Father... She started to repay me with sexual favors. This happened every day...and often twice a day.'

The priest said, "That was a long time ago and by doing what you did, you placed the two of you in great danger, but two people under those circumstances can easily succumb to the weakness of the flesh. However, if you are truly sorry for your actions, you are indeed forgiven.

"Thank you, Father. That's a great load off my mind. I do have one more question."

"And what is that?" asked the priest.

"Should I tell her the war is over?

OK--THAT'S IT FOR THIS WEEK.  ENJOY AUGUST--THE LAST FULL MONTH OF SUMMER.

BEST, JOHN

---------------------------------

Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. —Ronald Reagan 

THE  CHINESE CONSPIRACY   

BUY IT NOW:    http://www.thechineseconspiracy.com

 

Come see me on Forbes.com, and American Express' Open Forum.com  Just search for Mariotti...there are lots of posts to read--some old, some new.

 

John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net, http://mariotti.blogs.com/my_weblog/