Monday, August 9, 2010
15 Steps for Successful Strategic Alliances
1. Be open to romance, but court carefully. At the beginning of new relationships, selective perceptions reinforce dreams, not dangers. Potential partners see in the other what they want to see, believing what they want to believe. Hopes, dreams, and visions should be balanced by reality checks.
2. Know yourself. Build your strengths. An organization seeking partners should identify assets that have value to partners and strengthen them. Networks of the weak do not survive. The best alliances join strength to strength.
3. Seek compatibility in values. In rapidly changing environments, compatibility in values, philosophy and goals is more important than specific features of an immediate business deal. The basis for collaboration must be more enduring, and there must be a foundation for mutual trust to help weather inevitable changes or problems.
4. Treat the 'extended family' respectfully. Include other partners and stakeholders. Rapport between leaders of partner organizations is not enough. Other people and organizations who are the 'relatives' in each organizations' extended family must also be won over.
5. Put the lawyers in their place. Leader-to-leader relationships are important. Partnerships and network formation shouldn't be turned over to third-party professionals, such as staff analysts, lawyers, consultants, or deal-brokers.
6. Vow to work together until business conditions do us part. Commit to a first project, to exploring growth in the relationship, to monitor change, and to remain friends if changing conditions require a graceful exit.
7. But don't count on the contract. Formal agreements can't anticipate everything, and interpretations of the agreement vary — even within the same organization.
8. So keep communicating, face-to-face. Matters are more easily sorted out when partners' leaders keep talking long after their initial deal-making and dedicate people to watch over the relationship — a partner or alliance 'ambassador' (the equivalent of key account managers).
9. Spread involvement. Create more ties for more people. Alliances begin with a few direct connections among top leaders. As projects unfold, more people at more levels must get involved, and they need to feel connected, too — that they know their counterparts in their partner organization. The more people feel included, the more they have a chance to see the others face-to-face and come to know them, the easier it will be to implement partnership activities.
10. Build organizational bridges — formal structures. Active collaboration occurs when organizations develop structures, processes, and skills for bridging organizational and interpersonal differences and getting value from the relationship. Bridges include formal governance (a partnership board), joint project teams, and alliance ambassadors.
11. Respect differences. Alliances, partnerships, and networks are most helpful when they involve differences — when partners give each other something they do not already have. But differences in "specialty" desired by partners are accompanied by more "inconvenient" differences in behavioral style, motives and goals, operating methods, or cultural assumptions. Respect is essential. Time must be invested in understanding differences and transcending them.
12. Teach partners. Learn from partners. People from across the partnership network must become teachers as well as learners. Often the ultimate value of a partnership is the new knowledge and skill it brings. Organizations that derive greater value from their alliances tend to have greater communication internally, share more information, and promote an atmosphere of learning.
13. Be prepared to change yourself. Partners must be willing to be influenced by one another. To make linkages possible requires operating compatibilities, project by project and sometimes even in a larger sense. This can mean learning the other's language and style or inventing a new one; changing to the other's system or creating a joint one.
14. Help everyone win. Mutuality is the hallmark of organizational collaboration. Balancing benefits so that each partner gets something of equivalent value can be hard to do in the short run, but it is essential in the long run. The best alliances try to maximize the value of the whole relationship, which then makes it more valuable to each partner.
15. Get closer, change course, or exit gracefully. Like living systems, relationships evolve. Change should be expected. But the best guarantee that organizations will be closer in the future is success in what they try to achieve today. Success strengthens relationships.
To ensure that your partnerships are effective, apply these principles at every stage of the relationship.
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Rosabeth Moss Kanter is a professor at Harvard Business School and the author of Confidence and SuperCorp.
Connect with her on Facebook or at Twitter.com/RosabethKanter.
Wednesday, June 2, 2010
The Impact of the Irrelevant on Decision-Making
Economic View
The Impact of the Irrelevant on Decision-Making
Published: May 28, 2010
By ROBERT H. FRANK
Even so, when people confront opportunities to improve their position, they’re generally quick to seize them. When energy prices rise sharply, for instance, consumers are quick to adjust their thermostats. So most economists are content with a slightly weaker assumption: that people respond in approximately rational ways to the information available to them.
But behavioral research now challenges even that more limited claim. For example, even patently false or irrelevant information often affects choices in significant ways.
Consider the people who set their watches a few minutes ahead, to prod themselves to arrive at appointments on time. When asked what time it is, they effortlessly perform the required subtraction before answering. So, in one sense, the false image on the watch face doesn’t fool them at all.
But that same image is fed into their brains through multiple neural pathways. Some lead to the circuits that do the subtraction. But others lead directly to emotional circuits, which react to the image at face value. The resulting anxiety is why the practice works.
An intriguing example of transparently irrelevant information that affects behavior comes from a 1974 report on an experiment by the psychologists Daniel Kahneman and Amos Tversky. In the experiment, subjects first spun a wheel that supposedly would stop at random on any number between 1 and 100. Then they were asked what percentage of African countries belongs to the United Nations. For one group of subjects, the wheel was rigged to stop on 10; for a second group, on 65. On average, the first group guessed that 25 percent belong to the United Nations, but the second group guessed 45 percent.
All subjects would have insisted, correctly, that the number on the wheel bore no relation to the correct answer to the question. Yet, obviously, the number profoundly influenced their responses.
In short, even demonstrably false or irrelevant information can influence judgments, which in turn influence decisions. In such cases, Professors Tversky and Kahneman wrote in 1981, “the adoption of a decision frame is an ethically significant act.”
Policy makers have long recognized the potential danger of false statements by advertisers. But in the belief that most adults are suitably skeptical about promotional puffery, Congress has tried to prohibit only the most blatantly false or explicitly misleading claims.
But what about merely irrelevant statements, or only implicitly misleading ones? Standard economic models say such claims are, well, irrelevant, so there should be no need to regulate them. But according to recent behavioral research, it’s a distinction without a difference.
Although cigarette advertisements, for example, typically portray smokers as young, healthy and attractive, smoking can make people look older and less healthy. Such ads make no explicitly false claims, but that doesn’t make them less misleading, even for informed consumers.
More troubling are instances in which politicians employ patently false statements to shift the terms of important public debates. Decades before President George W. Bush tried to privatize Social Security, for example, Democratic presidential candidates regularly frightened Florida seniors with groundless accusations that their opponents would gut the program.
Of course, politicians of both parties have long taken liberties with the truth. But as even conservative political commentators have begun to point out, Republicans have lately been far more aggressive in stretching traditional boundaries. When Sarah Palin said that if health care reform legislation were adopted, her parents and her child with Down syndrome “will have to stand in front of Obama’s ‘death panel’ so his bureaucrats can decide, based on a subjective judgment of their ‘level of productivity in society,’ whether they are worthy of health care,” most people probably realized the president had made no such proposal. Her statement nonetheless shifted the terms of the debate, making it harder for legislators to focus on genuinely relevant issues.
CAN anything be done? For a variety of practical reasons, legal sanctions promise little protection against blatantly false statements. It is helpful, to be sure, when journalists call out politicians who stray too far from the truth. But merely knowing that a statement is false doesn’t nullify its impact. To be effective, a remedy must act prospectively. It must discourage people from making false statements in the first place.
Economists have long recognized that social sanctions are often an effective alternative to legal and regulatory remedies. As Adam Smith argued, moral sentiments are extremely powerful drivers of human behavior. People who know they’ll be ridiculed for telling untruths are more likely to show restraint.
Some social sanctions are less effective than others. In recent years, the most conspicuous public falsehoods have been ridiculed by independent bloggers and Comedy Central’s faux news hosts. But television and Internet audiences are highly segmented. Many of Jon Stewart’s targets may never hear his riffs about them, or may even view them as badges of honor.
That’s why it’s important for the circle of critics to widen — and why we need to remember that framing a discussion appropriately is “an ethically significant act.”
Robert H. Frank is an economics professor at the Johnson Graduate School of Management at Cornell University.
A version of this article appeared in print on May 30, 2010, on page BU5 of the New York edition.
Noah Kagan on Building a Valuable Business
| Building a billion-dollar business | ||
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| By NOAH KAGAN EVER since I was a little kid I wanted to be rich. I think most of us do; however, we might not think about how to get there. I once had a friend who was a child prodigy, highly respected by the Silicon Valley community. His sole goal was to create a billion-dollar business - nothing else mattered. Because of this, he rejected ideas that were either way too small or did not monetise well enough. He took one year to develop different ideas and one idea in particular grew very large. However, at the end of the year, he threw it all away. This was because despite having millions of users, he had no real product, no value, no love and no engagement. His main problem was that he put the business before the users. Having spent a lot of time both failing and succeeding, I have assembled some advice for aspiring entrepreneurs on how to build a billion-dollar business. 1. Focus Focusing on how you can become a big business is the first mistake. Instead, it is better to focus on creating something ultra-valuable to your users. Focusing on large billion-dollar exits only sets your business too far in the future and misses all the details you need to get there. The question you should be asking your users is, 'How would you feel if we were not around any more?' It is when they answer that they cannot live without it, that you know you have a winner. 2. Start small IBM, Facebook, Google, Mint, Microsoft - all these companies started out small and were run by just a few people. They were not overnight billion-dollar companies. They started with a few people who came together to solve a problem. I doubt that the founders planned from day one to make a billion dollars. Large things form from small beginnings. So do not worry if your idea is not immediately worth a billion dollars. Instead, plant the seed and help it to grow. 3. It takes time The vast majority of companies do not create over a billion dollars in value in less than three years. Building a billion-dollar business will take significant time and resources, be prepared for this. 4. Validate It is also best to make sure that before you start building something, you have an idea of the problem that you are trying to solve. Not validating the problem was one of the mistakes my colleagues and I made when we spent six months building up a new company. Time and money wasted then could have been spent on validating the problem. For instance, by questioning potential users, conducting surveys online and putting up advertisements to test the market and identify how likely tentative interest is to translate into actual buyers of your product or service. One of the best ways to validate your business is to ask for an upfront contract with potential users. You could go even further and ask them to pay you ahead of time. 5. Learn The best thing you can do is fail and make many mistakes. However, after doing so, make sure you ask the right questions in order to learn from your mistakes. 6. Organisational behaviour While I would admit to not always being the most-organised person, here are some tips on what organised, successful companies do:
7. Define the objective Once the objective is clearly defined, you can then work backwards to see how to meet it. For example, I had a friend who wanted to be a New York Times best-selling author. When I asked how many books he needed to sell in order to make it to the best-sellers' list, he had no idea. But once we had figured out this amount, it was easy to work backwards through marketing channels, priorities and strategies, in order to guarantee that he would get that specific number of sales needed. And he did! In addition to the above-mentioned tips, there are also a range of different tools out there to help entrepreneurs save precious time. Time which they can then spend on growing their companies. These include:
And, of course, you should turn off all instant messengers so you can focus on the work you are doing. While it is important to put the users in front of the business, it is also important not to just end up doing things to please only your end users. Remember to build something that you want for yourself. If you create something that you would actually pay money for, then it is hard to go wrong - even if you end up just with one customer. This article was first published in The Business Times. |
Thursday, May 6, 2010
Note to Self
http://www.asla.org/2009awards/043.html
http://www.azuremagazine.com/magazine/backissues/features.php?id=1774&c=2
http://ellerg.blogspot.com/2009/05/greenest-wall-of-them-all-10-cool-green.html
Parabienta green wall. Developed by the Japanese companies Shimizu Corporation and Minoru Industrial Company, it employs a sheet of polyester-blended soil, heated with steam, moulded together, and mounted in a modular steel frame. Complete with an irrigation system that senses changes in temperature and the soil’s moisture content, it adjusts water and nutrient flow accordingly.
Thursday, December 10, 2009
Revised RoHS Directive, and an Erroneous Name in RoHS 2
ElectroIQ
By Lev Shapiro, Component Master Ltd.
The European Commission (EC) proposes several changes to its RoHS Directive. Medical devices and other exempted end products will be affected, product labeling will change, and the character of the RoHS legislation will be reinvented. However, calling this revision "RoHS2" is a misstep, based on the informal but generally accepted RoHS5/6 terminology.
On December 3rd, 2008, the Commission of the European Communities issued the proposed revision of the original RoHS Directive. The objective of proposed reforms is to develop "a better regulatory environment, one that is simple, understandable, effective and enforceable".
The major changes that are in these proposed amendments include:
1. Categories 8 (medical devices) and 9 (monitoring and control instruments) of WEEE will be included in the scope of RoHS Directive in a stage manner commencing 2014 through to 2017.
2. Exemptions will be granted for a maximum validity period of four years (currently exemptions are granted with no expiration date).
3. It is provided a binding list of products for each category of equipment covered by RoHS.
4. For demonstration of compliance, products must have an EC declaration of conformity from the manufacturer and they must bear the CE mark.
5. The term "producer" is replaced with "manufacturer," distributor," "importer," or "authorized representative" — to be collectively known as "economic operators."
6. The list of banned substances is not changed; however, four substances are identified for priority assessment in view of a possible future inclusion in the list of banned substances.
In official European Commission documents, there is no concrete and definite name for this proposal; however, in many articles and publications, the revised RoHS Directive is already called RoHS2.
An erroneous name like RoHS 2 may seriously mislead the electronics industry and generate wrong interpretations. For example, the terms RoHS5 and RoHS6 became popular a few years ago. These terms are related to existing exemptions of RoHS (section 7 of the Annex), "... lead in solders for servers, storage and storage array systems, network infrastructure for switching, signaling, transmission as well as network management for telecommunications ..." According to this exemption, the products of exempted industries may use components and materials containing lead (Pb) on second level interconnect (components-to-PCB connections). For these products, only 5 of the 6 restricted substances are described as within the scope of RoHS. Lead is exempted. In other words, RoHS5-compliant parts do contain lead >1000 ppm, but meet the concentration limits for the other five hazardous substances. Such leaded components and applications are called RoHS5, in comparison with RoHS6, which reflects a full RoHS compliance.
The terms RoHS5 and RoHS6 are slang abbreviations that have not been formally adopted by the EU Commission. They are not defined either in the RoHS documents or in any standards related to lead-free technology. Despite this, today they are wide-spread definitions. In a Google search, about 20,000,000 references are found for RoHS5 (RoHS-5 or RoHS 5/6).
Intel and many other semiconductor manufacturers, together with manufacturers of passive and electro-mechanical components, offer the ROHS5 compliance certificates and sometimes even define the RoHS 5 (RoHS 5/6) components in their data sheets. Under these circumstances and this terminology history, the name RoHS 2 for new RoHS proposal will be erroneously perceived by many users. Based on the analogy of RoHS5, some may conceive of RoHS2 as a vague "two substance" restriction.
The European Commission must define a correct name for the revised RoHS Directive and avoid the doubtful name that is exposed to wrong interpretations. Otherwise, the main objective for proposed revisions to make RoHS legislation more "simple" and "understandable" will be not achieved.
Thursday, September 3, 2009
Autodesk’s Ambition to Change the Green Building Industry
By Justin Moresco - Earth2Tech
When software is designed well, it can radically improve the way an industry works. That’s the vision behind ongoing efforts at Autodesk to upgrade its building performance modeling software — to make energy retrofits of buildings cheaper and easier.
The San Rafael, Calif.-based firm believes the improvements it’s making to its suite of construction industry software will compress the time it takes to do detailed sustainability analysis (energy, water, emissions) from weeks to days and as a result, make such analysis cheap enough to be accessible to a majority of the building market.
More than 100 million buildings in the U.S. are leaky and inefficient and could use an energy makeover with measures like better insulation, heating and air conditioning systems and natural ventilation. But most of these structures are relatively small (homes and offices), and the cost of building accurate computer models to do detailed analysis on them is often too high with current technology, according to John Kennedy, senior manager for sustainable analysis products at Autodesk. He says energy service companies (ESCOs) -– businesses that develop, install and finance energy efficiency projects –- today won’t touch a building less than 10,000 square feet.
But Autodesk believes the economics will dramatically change once engineers and architects can build a model in, say, a day or two and have it automatically spit out recommendations with the impact on cost and performance for each measure. Some of the new or improved features Autodesk is working on include: an increased use of cloud computing that would make sophisticated analysis quicker, more leverage of deep reservoirs of data about local weather conditions and the performance of different building products, more accurate and faster modeling of natural ventilation and water use, and an emphasis on making sure all of this “sustainability criteria” can be easily and accurately shared between the different software used by architects and engineers. Kennedy didn’t provide a timeline for these upgrades.
Autodesk also wants to incorporate the embodied energy of building materials (the total energy used in manufacturing, transporting and installing) more thoroughly into its software models. “It makes no sense to put triple-paned windows in a house in Los Angeles when the energy saved from its use would never exceed the amount needed to build it,” Kennedy said. Few vendors currently supply or even have this data to provide, he added.
Still, even with Autodesk’s planned improvements, it’s unclear how far down into the building market its software can penetrate. At some point, it will always be cheaper for boutique energy retrofitters focused on the residential market to analyze a home than an architectural or engineering firm charging $150 an hour.
Autodesk says that current versions of its software –- such as performance modeler Ecotect Analysis and its on-demand Green Building Studio –- has already shrunk the time it takes for sustainability analysis from months to weeks, and the firm can also boast of a growing customer base. But the use of building performance software, from Autodesk or anyone else, is still relatively uncommon among design firms.
Part of the reason for this slow adoption is the perceived high cost of using these tools. Another reason, however, is that the industry –- broadly speaking -– is still operating collectively as if energy and water use don’t need to be factored in during design. It’s what Dawn Danby, sustainable design program manager at Auodesk, calls a “cultural” problem. While stricter building codes and the growing prominence of green building standards like LEED are pushing the embrace of performance software, widespread adoption won’t happen until architects and engineers change their habits.
That helps to explain Autodesk’s mounting marketing push alongside its software development. As part of that effort, in July the firm announced its “Clean Tech Partner Program” through which it will give away software packages worth up to $150,000 each to 100 early-stage cleantech startups. According to Danby, the firm is working hard to inform designers and building owners that its software is relatively easy to use, inexpensive and gives quick feedback.
Still, changing the construction industry will be a long slog, even when one of the strongest pushes is coming from a fast-moving software company.
Friday, April 17, 2009
Hyundai Wins Building Bid for Singapore Oil Cavern Storage Facility




Pictures Source: The Straits Times, Singapore.Via Your Industry News:
Friday, Apr 17, 2009
Singapore moved forward with plans to build a 9.5 million-barrel rock cavern oil storage facility by awarding on Thursday an S$890 million ($594 million) building tender to South Korea's Hyundai Engineering (000720.KS: Quote).
The first phase of 1.48 million cubic metres (9.5 million barrels) comprises five caverns on offshore Jurong Island that could hold crude, naphtha, condensate and gas oil, most likely for commercial, rather than strategic purposes. The first two caverns are expected to be operational by early 2011.
A planned second phase could add another 1.3 million cu m of storage but a decision has not yet been made.
For cost and operational reasons, underground caverns are often used to hold long-term strategic stocks rather than more actively traded barrels.
The U.S. government stores its strategic crude reserves in four underground sites, while South Korea leases out its tanks to refiners to be used for strategic purposes.
Industry sources say underground caverns, which normally cost more than an above-ground facility of similar capacity, are typically used for barrels that remain in-tank for longer periods and are not traded in and out of tanks rapidly.
"The cavern facility will be used for commercial purposes, but there will be physical limitations for storage of trading barrels, particularly those that need to move quickly or be blended, as transferring of products will be involved," said a source in the storage business.
State-owned industrial landlord JTC Corp had said it would unveil the winning bid for the operator of the Jurong Rock Cavern project in the April-June quarter, delaying it from end of February.
A spokeswoman said the results would be unveiled before end-June.
JUMP IN STORAGE CAPACITY
This is not the first time the decision has been postponed -- the tenders were first called in late 2007, and the results have been plagued by months of delays since.
JTC said that more time was needed to study the design and construction process for the large-scale, complex project, as safety was a key priority.
Industry sources said bidders for the operation tender include Dutch oil and chemicals storage firm Royal Vopak NV (VOPA.AS: Quote), New York-based engineering and infrastructure consultants Parsons Brinckerhoff and storage operator Horizon Terminals Ltd, wholly owned by Emirates National Oil Company (ENOC).
Vopak already operates landed oil storage tanks next to the planned facility.
For phase one of the cavern project, there will be about 7.0 km (4.3 miles) of galleries and tunnels.
Once both phases are completed, the project could raise oil storage capacity in land-scarce Singapore to nearly 11 million cubic metres or almost 70 million barrels.
Since end-2005, Singapore has almost doubled independent oil storage capacities, but all of it has been leased out, leaving the market short of tanks despite slowing consumption.
For example, fuel oil storage capacity in Asia , following the opening of three new terminals with a Total of 4-5 million cu m since end-2006, has increased substantially but has not been balanced by a similar rise in demand for the residual fuel due to the economic downturn.
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Related News: Energy Business Review
JTC Awards Contract To Hyundai Engineering & Construction For Oil Storage Project In Singapore
Published:17-April-2009
By Staff Reporter
JTC Corporation (JTC), a provider of industrial real estate solutions and services, has handed the construction tender for the city-state's rock cavern oil storage project to Hyundai Engineering & Construction Co., Ltd. Jurong Rock Cavern (JRC) is an initiative driven by JTC to increase underground oil storage capacity on Jurong Island. JRC will comprise an oil storage complex to be built at subterranean depths beneath the seabed of Banyan basin.
Upon completion, the underground caverns will have a potential storage capacity of close to three million cubic meters catering specifically to liquid hydrocarbons like crude oil, condensates and diesel oil.
Development works for Phase 1 of JRC, with a storage capacity of about 1.5 million cubic meters, had commenced at the end of 2006. JTC is currently appointing an operator to manage, operate and maintain the JRC facility.
The first contract of the Phase 1 JRC project involving the construction of two access shafts and start-up galleries is near completion. JTC is progressing onto the next critical milestone of the JRC project -- the construction of tunnels, caverns and associated facilities.
Work will now commence with the detailed design of the caverns/facilities and actual construction is expected to start by end of the year. When completed, the JRC will have an overall storage capacity of 1.47mil cubic meters. The whole project will be completed in stages, with the first two caverns targeted for completion in 2013.
