Book Review: Built to Last

Built to Last-Successful Habits of Visionary Companies by Jim Collins and Jerry Porras delves into the success of Eighteen companies. The project was started at Stanford University Graduate School of Business and analyzed what made companies successful from the stages of start-up, midsize, and large corporations. It is about those visionary companies that have made significant impact on the lives of their workers and the environment in which they exist. These companies contained a number of criteria that includes: 

-Premier institution in the industry;

-Widely admired by knowledgeable business people;

-Made an indelible imprint on the world;

-Had multiple generations of chiefs;

-Been through multiple product cycles;

-Founded before 1950

The authors discovered some interesting findings. Great companies often start out slower than other companies but win in the longer term. Most of the companies focused on building the proper infrastructure and foundations for future development. Great companies don’t exist to only make money but instead develop out of sound objectives and visions. They have a purpose to exist beyond money. The ideologies that successful companies foster are a component of how deeply within the organization they go. The deeper the values are embedded the more likely success will be found. Even though the processes and procedures change the core values do not change leading to stability of purpose.

Such companies are not afraid to make bold moves when necessary. These are not careless moves but well thought out and planned. They often select candidates that fit within their culture and ideology to achieve those moves. Often the leaders and staff are willing to experiment and find new ways of doing routine things. Sometimes they are successful and other times they fail. They often promote their CEO’s from inside the company to develop the proper skills and culture over time. Instead of trying to beat the competition visionary companies compete against themselves.  They are willing to balance between growth and stability. They were one of the first companies to adopt vision statements. 

The chapters highlight the concepts above. There is considerable discussion on each of their chosen companies and the details of what made them successful. Likewise, managers should find some practical advice such as how to develop their vision statements. The language is written at a college level or slightly above. It is not a casual read but neither is it full of scientific jargon. It is a book that managers, directors and executives should read in order to have a better perspective of their own business. 

Collins, J. & Porras, J. (2002). Built to Last. NY: Harper Collins. ISBN 0-06-051640-2

Nano Nano! Are there other Earth Planets? Scientists Think So!

NASA scientists discover potentially billions of earth like planets. In 2009, after the Kepler space telescope was launched, interesting data indicates there may be other earths in our solar system.  According to proceedings from the National Academy of Sciences nearly one in five of the 11 billion planets have at least one earth-like planet orbiting it.  It has opened a new perspective to scientists, researchers, and space buffs.

These planets are within 12 light years away which is not that far once the right equipment is available. It should be remembered that Columbus first proposed the idea of finding a new Asian route in 1485 and on his third voyage hit mainland South American in 1498 (13 Years). 1492 was the year he discovered the islands and he did not move at the speed of light.

Around 2011, scientists discovered the Kepler-22b that contains stars within appropriate orbits around the sun. This means they could contain water and possibly be within the human habitable zone. Being in this zone means there is a chance they contain carbon based life forms, could be visited, or even colonized. Of particular interest is the Kepler-62f which has about 40% more mass than earth. Many other small earths were also discovered.

In the Milky Way it is believed that 11 billion of the 50 billion planets are earth like. Most of them are likely to be composed of substances that cannot contain life such as rocks, gases, small atmospheres, etc. Yet if we look at the odds of the 11 billion containing a few thousand, or more, of earth like planets containing earth qualities the overall findings become significant. 

NASA scientists were monitoring 147,000+ planets to try and determine if similar planets were rarer or more of a common occurrence. They investigated changes in light from interstellar movement, distance from sun and temperatures that may contain life. The scientists vow to find more information and seek additional answers despite the eventual malfunctioning of the telescope.

As technology develops we may someday be sitting on one of those planets looking back at Earth through a telescope wondering how we got there. The answer is likely to be something along the lines of, “After crawling out of the wilderness a few great minds like Einstein and Ibn Sina dared to dream”.  We will ponder our long development from eking out a living with simple bone tools to navigating interstellar spacecraft. We may even wonder what happened to the other dreamers who contributed to this triumphant moment…and with a sigh, remember the improper uses we found for those primitive instruments. 

Moving from a flat earth to a round one, having the sun circle us to us circling the sun, from one continent to the next, to being one earth among many, human perception has changed . This is the process of development that continues to widen and afford opportunities to understand a greater context of information. As new information enters the human conscious we become more aware of how we are one piece of a larger puzzle still holding petty differences that may soon fade away into irrelevance (a century near you).

“Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions."-Albert Einstein.

Read previous blog post, original journal publication, and theory of relativity HERE

Other Reading:

History

NPR

Accurately Conducting Market Forecasts

Market forecasting is an attempt to predict opportunities for revenue generation through understanding future trends. The paper by Pilinkienų (2008) discusses a number of forecasting mistakes organizations make. Understanding how to forecast properly is part of market analysis and is a strong method for determining present actions that will have outcomes that are more fruitful in the future. Strategic decisions of organizations often rely on information contained within the present and the likely outcome of actions five or ten years down the road.

Forecasting is usually seen as a process of understanding trends that influence the status of economic objects. Such outcomes continually adjust as new information becomes available. It is about knowing future economic opportunities through analysis based upon objective laws of reality. Some can see it as a prediction of events based in theory and practical laws of nature. There are number of concepts related to forecasting:

-forecasting is assessed not from a static function but from a position within a process;

-economic index is usually considered to be the object of forecasting;

-it is a concurrent part of every economic subject’s activity;

-forecasting tools are used to make predictions.

Forecasting the market demand is a process that seeks to analyze the present status of market demand and to predict changes in the market for a specified period of time. Such predictions help organizations adjust their strategies and offerings in a way that help them overcome environmental factors and draw the most potential for revenue. Every product and service has a lead-time and understanding trends will help ensure resources are not wasted in the developmental process.

Bails and Peppers(1993)  offers a forecasting model that includes action steps:

-Formulation of the forecasting claim.

-Identification of external and internal factors.

-Collection and analysis of information.

-Selection of forecasting methods.

-Verification of the forecasting method.

-Conducting the forecasting.

The authors indicate that looking at market indexes and government information make the process of forecasting easier. The use of available market data is used as an overall guide to specific product/service forecasts. The more information governments and other institutions offer the easier it is to find strategic pathway to developing sustainable operations. 

There is bottom-up forecasting and top-down forecasting. In bottom-up forecasting the individual sales revenue of each of a firm’s products are used to determine the revenue projections of the firm. In a top-down forecasting, the highest-level sales projections are used for main products and the analysis moves downward into smaller product areas. It provides two slightly different projections. 

The authors found that a majority of firms use surveys in their forecasting method. They also leave far too little information on influence of external market factors (i.e. global trends).  There are times when a single forecasting model can create improper market assumptions. These firms may fail to consider alternative sources of information or counter perspectives.  Once completed, the firms may not assess the appropriateness and accuracy of their chosen methods thereby perpetuating the problem. 

In agreement with the author, the forecasting method is limited by the analytical abilities of the researcher as well as the models they chose. Where there is no perfect model available, the use of multiple models will develop increasingly accurate assessments. Firms should consider alternative scenarios in order to help themselves prepare for market changes or previous inaccurate assessments.  Using a wider macro-assessment of global trends within their analysis will help ensure that the global market is accurately reflected. All local trends exist within a wider global trend.

Bails, D. & Peppers, L. (1993). Business Fluctuations. London: Prentice Hall International.

Pilinkienu, V. (2008).Market demand forecasting models their elements in the context of competitive market. Engineering Economics, 60 (5).

Over 1,400 Stolen Famous Art Pieces Found in Munich

Village Girl with Goat-Lost Art Piece

Authorities found long lost art by famous masters such as Pablo Picasso, Pierre-Auguste Renoir, Henri Matisse and Otto Dix in a Munich apartment. It is believed that such works were stolen during the Nazi Era and disappeared into the ashes of history. The total value of the 1,400 pieces seized could easily be over a billion dollars sparking interest from a variety of groups and parties. 

Most of the works are well preserved and part of the list called “degenerative art” that the regime felt were not in alignment with local culture. Such art was often either removed or destroyed in an attempt to provide what was seen at the time as a purer culture. Some artists were fined or jailed for breaking cease and desist orders on their painting activities. 

When art was seized sometimes it was sold overseas for hundreds of millions of dollars. The regime would hire someone to help sell the art and remove it from the country. It is believed that the holder’s father was hired to do just that. He was discovered with a large stash of cash and a search warrant discovered the source. 

As no major lists have been released it makes a number of major art enthusiasts wonder precisely what the paintings are and who the original owners were. Many great masterpieces offered to the world at one time may change the nature of the art market in a profound way through the discovery of lost work and techniques. Despite the recent hidden find it is possible others are out there just under someone’s kitchen floor, root cellar or in a secret basement doorway. 

More Reading: 

New York Times 

The Globe and Mail

USA Today

WSJ-U.S. Info Request

Call for Papers: International Journal of Business and Economic Development

 Call for Papers: International Journal of Business and Economic Development

Deadline Date: 03-31-2014

The International Journal of Business and Economic Development (IJBED) IJBED`s mission is to promote and publish research inquiring into the behavior of business , their ways of upgrading themselves in response to changes in the environment and the way the policy framework is being developed to encourage them to expand in a rational manner. For further information please visit at www.ijbed.org

The International Journal of Business and Economic Development (IJBED) IJBED`s mission is to promote and publish research inquiring into the behavior of business , their ways of upgrading themselves in response to changes in the environment and the way the policy framework is being developed to encourage them to expand in a rational manner. For further information please visit at www.ijbed.org

Additional Paper Submission Journal Information 

Biology and Personality Influence Communication Styles

The authors Waldherr and Muck (2011) discuss how biology and personality contribute to communication behavior. They advocate embedding language into the Five-Factor Theory to better assess language as a characteristic adaptation to personality. The arguments put forward in their literary research lean more heavily on personality as a key factor that has two major running themes. 

Communication is a circular process as each of the actors is both the communicator and the recipient at various times during a discussion (Schramm, 1954).  Each person encodes, interprets and decodes messages differently making the communication process unique. Most of this process is internal to the individual and cannot be easily evaluated. Focusing on verbal, non-verbal and para-verbal language cues can help in evaluating communication patterns. 

Communication is seen as a reoccurring behavioral pattern that is personality based. It is expressed in varying ways in different situations to achieve directed goals. How one communicates in one situation or in a next will have similar deeply embedded goals and expressive styles even though the terms, words, and mannerisms may be situational. 

Communication behavior can be seen as “the way one verbally or para-verbally interacts to signal how literal meaning should be taken, interpreted, filtered, or understood” (Norton, 1978, p. 99). It is viewed as a stable pattern of behavior that stays relatively consistent across varying situations.  It is commonly believed that the two major themes of assertiveness and responsiveness exist across all communicative behavior (Burgoon and Hale, 1987)

Personality and communication can also be integrally tied together. Communication is personality driven and is based within a person’s biology (Beatty and McCroskey, 1998).  Individuals are predetermined to communicate in certain manners based upon their genetic makeup expressed within the environment. How a person communicates and whether or not a person communicates is rooted in their personality development.

Behavior and personality often mesh within the Five-Factor Theory of Neuroticism, Extraversion, Openness, Agreeableness, and Conscientiousness (McCrae and Costa, 1996). The biology of a person predisposes them to certain types of traits that mix with their personality which are expressed in certain ways that are influenced by situational factors. These situational factors are dependent on culture, education, experience, and other life influences.

A person’s can also influence communication through a self-construct. This construct is dependent on how a person views themselves in terms of being independent or interrelated to others (Markus and Kitayama, 1991). Self-construct is how a person views themselves in relation to others based upon values, beliefs, manners, skills, and a whole host of other issues. When self-construct changes it creates natural changes in communicative patterns.

The authors believe that it is important to define communication as personality rooted in the Five-Factor Theory. They also believe that communication follows two general patters of assertiveness or responsiveness. Assertiveness is the desire to dominate others while responsiveness is more closely akin to love and interrelatedness. These two themes make their way throughout the varying learned communication skills people develop over time.

The implications of the study suggest that learned skills and experiences enhance an employee’s communication skills. The patterns of communication will remain relatively the same but the complexity by which they express themselves will grow and develop over time. Business students should learn proper communication skills in order to fully express themselves in appropriate ways to others within the workplace. The learned skills can influence everything from workplace conflict to customer service and could have an impact on the bottom line. This is why it is important to hire for personality and train for skills.

Beatty, M. J. & McCroskey, J. C. (1998). Interpersonal communication as temperamental expression: A communibiological paradigm. In J. C. McCroskey, J. A. Daly, M. A. Martin, & M. J. Beatty (Eds.), Communication and personality: Trait perspectives (pp. 41_67). Cresskill, NJ: Hampton.

Burgoon, J. K. & Hale, J. L. (1987). Validation and measurement of the fundamental themes of relational communication. Communication Monographs, 54, 19_41.

Markus, H. R. & Kitayama, S. (1991). Culture and the self: Implications for cognition, emotion, and motivation. Psychological Review, 98, 224_253.

McCrae, R. R. & Costa, P. T. (1996). Toward a new generation of personality theories: Theoretical contexts for the Five-Factor Model. In J. S. Wiggins (Ed.), The Five Factor Model of Personality: Theoretical perspectives (pp. 51_87). New York, NY: Guilford Press.

Norton, R. (1978). Foundation of a communicator style construct. Human Communication Research, 4, 99_112.

Schramm, W. (Ed.). (1954). The process and effects of mass communication. Urbana, IL: University of Illinois Press.

Waldherr, A. & Muck, P. (2011). Towards an integrative approach to communication styles: the interpersonal circumplex and the five-factor theory of personality as frames of reference. Communications: The European Journal of Communication Research, 36 (1).

Fiesta de Reyes and Dia de los Muertos San Diego

Fiesta de Reyes is San Diego’s original pueblos and was the start of local life. The area has been established since 1821 and was considered and economic and community center. It contains around 19 shops for food, clothing, gifts, deserts, bars and restaurants. It is part of the downtown historic park district. 

The Dia de los Muertos, or “Day of the Dead” was celebrated November 2^nd at the Fiesta de Reyes. Activities included everything from shopping to music. The deeper meaning includes honoring and paying homage to those that have died. It is often connected with Dia de los Angelinos, or Day of Little Angels” to celebrate children who have passed away. 

It is a time where people construct alters in their homes to remember the lives of those who have went before. They offer sugar skulls, chocolate, marigolds (the Mexican flower of death), sweetbreads and trinkets for those who have passed. They celebrate the festival for Mictecacihuatl who is the goddess of the underworld. 

Originally, the Aztecs celebrated death for a month. It was an attempt to make peace with the inevitability of death.  When they converted to Catholicism under the Spanish, the festival was shortened to a day and coincides with All Saints Day. The festival is continuing to transform and change as it becomes multi-cultural in North America.

2754 Calhoun St
San Diego, CA 92110
619.297.3100

Fiesta de Reyes

Festival

Celebration History