On the other hand, the changing dynamics of e-tailing are having the opposite effect when it comes to shipping logistics … because not only are consumers shopping online in record numbers, they’re also taking advantage of delivery options that are bringing merchandise directly to them in 24 or 48 hours – even same-day deliveries in some cases.
What this means is that the efficiencies in procurement, inventory and distribution that drove many distribution centers to be built in outlying locations aren’t exactly working in today’s “deliver it to me and deliver it to me now” mindset.
[This is why we’re hearing about solutions such as drone deliveries – but that’s still a ways in the future and could eventually begin to cause congestion in a new realm – up in the air.]
In the meantime, more delivery vehicles than ever are competing with commuter traffic on already-congested highways during peak time periods. A shortage of qualified truckers is spurring development of driverless trucking, while the delivery system as a whole is running at full capacity (if not full efficiency).
Of particular concern is the so-called “last mile” delivery aspect in urban environments. It isn’t merely the issue of traffic congestion. It’s also city planning codes (outdated), parking restrictions (made even more difficult thanks to the current fad in “progressive” cities of adding bike lanes while removing on-street stopping and parking), and load limitations (adding even more challenges and complexity).
But nature abhors a vacuum, and there are some interesting developments happening to address the challenges. The use of data analytics is growing exponentially, with route maps, GPS data, and real-time expected-versus-actual travel time updates allowing for transport rerouting to happen “in the moment.”
Other novel solutions, such as smart lockers that receive multiple shipments in a central location, plus the use of mobile warehouses within urban areas enabling less reliance on the big remote distribution centers, are emerging.
Burgeoning ride-sharing services like Uber and Lyft are contributing to more congestion in urban areas – just think how many more ride-sharing vehicles are on the road today compared to taxi cabs in the past. But in rural or remote areas the opposite issue is in play – difficult accessibility. This is where drone deliveries are a welcome development — including during in the wake of natural disaster occurrences where traditional transportation methods might be impossible — or at the very least highly dangerous.
What are your thoughts about the friction between “convenience and congestion”? Will technology help us smooth out the rough edges — or are we in for even more frustrations? Please share your thoughts with other readers here.
Relying on Key Performance Indicators has become the norm in many business operations. And why not? Properly defined and managed, KPIs help businesses focus on the right priorities and chart progress towards their goals.
But even well-designed KPIs have their limitations. By their nature, they’re not greatly insightful (they’re indicators, after all). The problem is that very often, KPIs are used as if they are.
One of the attractions of focusing on KPIs is their simplicity. Managers love boiling things down to concise, action-oriented statements and phrases. We hear it all the time from senior leadership. “Give us the bottom-line finding,” they emphasize.
“Business by bullet-point,” if you will.
But here’s the thing: Because of their distilled simplicity, KPIs can lure many a businessperson into overestimating the insights that they’re able to provide.
KPIs do provide a jumping-off point, but the underlying “why” is often still conjecture or a hypothesis. It takes discipline to look for deeper insights and corroborating evidence to really understand what KPIs are saying to us.
“Anyone who has worked on developing KPIs knows that it is a game of balance and compromise based on business objectives. The need for actionable information battles with the desire for simple metrics.”
“We all have seen many “death by KPI” [situations] when organizations look at things the wrong way. When someone is lost while driving, [to] keep looking at the dashboard of the car won’t get the driver out of trouble. In a time like that, one must turn on a navigator. Different solutions call for different analytics, and popular KPIs – no matter how insightful they may have been – often do not lead to solutions.”
What have been your experiences in working with KPIs in your business? How have they helped … or not? Please share your thoughts and perspectives with other readers here.
In China, it’s difficult to discern where private industry ends and the government begins. At some level, we’ve been aware of that conundrum for decades.
Still … opportunities for doing business in the world’s largest country have been a tempting siren call for American companies. And over the past 15+ years, conducting that business has seemed like the “right and proper” thing to do — what with China joining the G-8+5 economic powers along with incessant cheerleading by the U.S. Department of Commerce, abetted by proactive endeavors of other quasi-governmental groups promoting the interests of American commerce across the globe.
But it’s 2019 and circumstances have changed. It began with a change in political administrations in the United States several years ago, following which a great deal more credence has been given to the undercurrent of unease businesspeople have felt about the manner in which supposedly proprietary engineering and manufacturing technologies have suddenly popped up in China as if by magic, pulling the rug out from under American producers.
Nearly three years into the new presidential administration, we’re seeing evidence of this “new skepticism” begin to play out in concrete ways. One of the most eye-catching developments – and a stunning fall from grace – is Huawei Technologies Co., Ltd. (world headquarters: Shenzhen, China), one of the world’s largest makers of cellphones and high-end telecom equipment.
As recounted by NPR’s Weekend Edition reporter Emily Feng a few days ago, Huawei stands accused of some of the most blatant forms of technology-stealing. Recently, the Trump administration banned all American companies from using Huawei equipment in its 5G infrastructure and is planning to implement even more punitive measures that will effectively prevent U.S. companies from doing any business at all with Huawei.
Banning of Huawei equipment in U.S. 5G infrastructure isn’t directly related to the theft of intellectual property belonging to Huawei’s prospective U.S. suppliers. Rather, it’s a response to the perceived threat that the Chinese government will use Huawei equipment installed in U.S. 5G mobile networks to surreptitiously conduct espionage for military, political or economic purposes far into the future.
In other words, as one of the world’s largest telecom players, Huawei is perceived as a direct threat to non-Chinese interests not just on one front, but two: the demand side and the supply side. The demand-side threat is why the Trump administration has banned Huawei equipment in U.S. 5G infrastructure, and it has also publicly warned the U.K. government to implement a similar ban.
As for the supply side, the Weekend Edition report recounts the intellectual property theft experience of U.S.-based AKHAN Semiconductor when it started working with Huawei. AKHAN has developed and perfected an ingenious form of diamond-coated glass – a rugged engineered surface perfectly suited for smartphone screens.
Huawei expressed interest in purchasing the engineered glass for use in its own products. Nothing wrong with that … but Huawei used product samples provided by AKHAN under strict usage-and-return guidelines to reverse-engineer the technology, in direct contravention of those explicit conditions – and in violation of U.S. export control laws as well.
AKHAN discovered the deception because its product samples had been broken into pieces via laser cutting, and only a portion of them were returned to AKHAN upon demand.
When confronted about the matter, Huawei’s company officials in America admitted flat-out that the missing pieces had been sent to China. AKHAN enlisted the help of the FBI, and in the ensuing months was able to build a sufficient case that resulted in a raid on Huawei’s U.S. offices in San Diego.
The supply side and demand side threats are two fronts — but are related. One of the biggest reasons why Huawei kit has been selected, or is being considered, for deployment on 5G mobile networks worldwide is due to its low cost. The Chinese government, so the thinking goes, “seduces” telecom operators into buying the Huawei kit by undercutting all competitors, thereby gaining access to countless espionage opportunities. To maintain its financial footing Huawei must keep its costs as low as it can, and one way is to avoid R&D expenses by stealing intellectual property from would-be suppliers.
AKHAN is just the latest – if arguably the most dramatic – example of Huawei’s pattern of technology “dirty tricks” — others being a suit brought by Motorola against Huawei for stealing trade secrets (settled out of court), and T-Mobile’s suit for copying a phone-testing robot which resulted in Huawei paying millions of dollars in damages.
The particularly alarming – and noxious – part of the Huawei saga is that many of its employees in the United States (nearly all of them Chinese) weren’t so keen on participating in the capers, but found that their concerns and warnings went unheeded back home.
In other words – the directive was to get the technology and the trade secrets, come what may.
This kind of behavior is one borne from something that’s far bigger than a single company … it’s a directive that’s coming from “China, Inc.” Translation: The Chinese government.
The actions of the Trump administration regarding trade policy and protecting intellectual property can seem boorish, awkward and even clumsy at times. But in another sense, it’s a breath of fresh air after decades of the well-groomed, oh-so-proper “experts” who thought they were the smartest people in the room — but were being taken to the cleaners again and again.
What are your thoughts about “yesterday, today and the future” of trade, industrial espionage and technology transfer vis a vis China? Are we in a new era of tougher controls and tougher standards, or is this going to be only a momentary setback in China’s insatiable desire to become the world’s most important economy? Please share your thoughts and perspectives with other readers here.
It’s been exactly two months since the crash of the Ethiopian Airlines 737 Max 8 Boeing plane that killed all 157 passengers and crew on board. But as far as Boeing’s PR response is concerned, it might as well never ever happened.
Of course, sticking one’s corporate head in the sand doesn’t make problems go away — and in the case of Boeing, clearly the markets have been listening.
Since the crash, Boeing stock has lost more than $27 billion in market value — or nearly 15% — from its top value of $446 per share.
The problem is, the Ethiopian incident has laid bare stories of whistle blowers and ongoing maintenance issues regarding Boeing planes. But the company seems content to let these stories just hang out there, suspended in the air.
With no focused corporate response of any real coherence, it’s casting even greater doubt in the minds of the air traveling public about the quality and viability of the 737 planes — and Boeing aircraft in general.
Even if just 20% or 25% of the air traveling public ends up having bigger doubts, that would have (and is having) a big impact on the share price of Boeing stock.
And so the cycle of mistrust and reputational damage continues. What has Boeing actually done in the past few months to reverse the significant market value decline of the company? Whatever the company may or may not be undertaking isn’t having much of an impact on the “narrative” that’s taken shape about Boeing being a company that doesn’t “sweat the small stuff” with proper focus.
For an enterprise of the size and visibility of Boeing, being reactive isn’t a winning PR strategy. Waiting for the next shoe to drop before you develop and launch your response narrative doesn’t cut it, either.
Far from flying below radar, Boeing’s “non-response response” is actually saying something loud and clear. But in its case, “loud and clear” doesn’t seem to be ending up anyplace particularly good for the Boeing brand and the company’s
What are your thoughts about the way Boeing has handled the recent news about its mode 737 aircraft? What do you think could have done better? Please share your thoughts with other readers here.
In recent months, we’ve been hearing a wide range of views about China’s economic and political aspirations and their potential implications for the United States.
Some of the opinions being expressed seem to be polar opposites — such as President Donald Trump’s pronouncements that the United States has been “ripped off” by China for decades. Contrast this with former Vice President Joe Biden’s dismissive contention that China represents no competition for the United States at all.
The column is titled Trump Is Waging (and Winning) a Peaceful World War III Against China. My curiosity aroused, I decided to get in touch with my brother, Nelson Nones, who has lived and worked in the Far East for the past 20+ years. Being an American “on the ground” in countries like China, Taiwan, South Korea, Thailand and Malaysia gives Nelson an interesting perspective from which to be a “reality check” on the views we’re hearing locally.
I sent Nelson a link to the Morris op-ed and asked for his reaction. Here is what he communicated back to me:
I think Dick Morris is correct to contend that the Chinese government’s long-term vision is bigger than just accumulating more wealth and power. In fact, I wrote about this topic in the book I co-authored with Janson Yap, when describing China’s “Belt and Road” initiatives as a geographic positioning threat to Singapore.
“As a land-based strategy, the SREB [Silk Road Economic Belt] promises greater long-term rewards for China than the MSR [Maritime Silk Road]; these would echo the impact of the completion of the first transcontinental railroad in 1869, which marked the beginning of the ascendancy of the U.S. to becoming one of the preeminent economic empires of all time.”
The context here is, if you look back through history, the world’s most dominant economic empires were either terrestrial or maritime — but not both — until the U.S. came along. As I further wrote in the book:
“After gaining control over both strategic land and maritime trade routes with the completion of the Panama Canal in 1913, America became the first land-based and maritime economic empire in history; its dominance has spanned over a century, from 1916 to the present. Uncoincidentally, the American economic empire began when the Panama Canal was completed, but the Panama Canal has arguably contributed far less to America’s GDP than the country’s investments in transcontinental rail and road transportation infrastructure.”
In short, I am absolutely sure China’s government aspires to overtake the U.S. as the world’s dominant terrestrial and maritime economic empire, and to hold that position for at least a century if not longer. But this would not be the first time in history that China has held such a position.
For the historical context, refer to: http://fortune.com/2014/10/05/most-powerful-economic-empires-of-all-time/. There you will see that the U.S. produced half the world’s economic output in circa 1950. China’s Song Dynasty was the world’s preeminent economic empire in circa 1200 AD, producing 25% to 30% of global output. Only the U.S. and the Roman Empire have ever matched or exceeded that marker.
I can tell you from my considerable experience on the ground in China that the strategic vision of its leaders is grounded in much more than just backward-looking grievance and necessity. Although the 19th Century Opium Wars (which were fought during the Qing Dynasty against the British Empire, and occurred during the period of the British Empire’s economic ascendancy) are often trotted out in China’s government-controlled English language dailies, the Chinese people I know have little or no knowledge of the Opium Wars or the colonial victimization China allegedly suffered a century and a half ago.
But they are acutely aware, and genuinely proud, of China’s emergence as a leading economic powerhouse; and this is how the Chinese government maintains its legitimacy.
China’s ambitions, in other words, have much more to do with reinstating its former glory (the Song Dynasty economic empire) than with righting wrongs (dominance by colonial powers), and are fundamental props for maintaining the Chinese Communist Party’s grip on power.
This view renders many of Dick Morris’ comments unnecessarily hyperbolic; for example “[China’s] goal is to reduce the rest of the world to colonial or dominion status, controlled politically, socially, intellectually, and economically by China. In turn, China is run by a handful of men in Beijing who need not pay the slightest attention to the views of those they govern or the nations they dominate.”
No, China’s goal is to become the world’s dominant economic empire but, just as the Americans before them, they don’t have to exert the same degree of control over the rest of the world as they do within their own territory to achieve this goal.
And no, they require constant support from the Chinese population to achieve this goal, even though they run an authoritarian state. Why else would they devote so many resources to the “Great Chinese Firewall” if there is no need to “pay the slightest attention to the views of those they govern”?
Yes, Trump’s trade war with China is important but his motive is to reverse the flow of jobs and capital out of the U.S. to China, which is not the same thing as launching an “economic World War III.” At a more practical and mundane level, it’s to fulfil a pile of campaign promises which Trump made when he was running for President, and to secure the loyalty of his base.
So there you have it: the perspectives of someone “on the scene” in the Far East — holding a view that is more nuanced than the hyperbole of the alarmists, but also clear-eyed and miles apart from the head-in-the-sand naiveté of other politicians like Joe Biden.
Let’s also hope for a more meaningful and reality-based discourse on the topic of China in the coming months and years.
In the United States it seems hardly news that poultry is the most-consumed protein. In recent years poultry consumption in America has grown while beef consumption has stagnated, weighed down by high prices at the consumer level.
At the same time, the National Pork Board committed an unforced error earlier in this decade when it abandoned its longstanding (and doubtless highly effective) tagline “The Other White Meat” in favor of the mealy-mouthed platitude “Pork: Be inspired” – a slogan that convinces no one of anything.
Persistent reports from the medical community that red meat is less healthy than consuming poultry and fish products haven’t helped, either.
But poultry’s prominence in the American market hasn’t necessarily extended to many parts of the rest of the world. But that’s now changing.
In fact, according to reporting from a recently-concluded International Poultry Council meeting in the Netherlands, poultry is poised to become the most consumed meat protein in 2019.
The precipitating factor is African swine fever, which is now affecting pig herds in 15 countries on three continents. Pork production losses this year are expected to represent ~14% of the world’s pork supply – and that’s just the minimum forecast; the losses could go higher.
Interestingly, African swine fever’s most significant initial outbreaks were in Russia and Eastern Europe, but now East Asia is being affected most significantly. The first cases were found in China beginning in August 2018 but now have spread rapidly throughout the country. For a country that is responsible for nearly half of the world’s supply of pigs, that’s a very big deal.
The swine fever is spreading to the nearby country of Viet Nam as well – which is the world’s fifth largest producer of pork.
The problem for pig growers is that African swine fever is the quintessential death sentence: The disease has a 100% mortality rate, and no vaccine has been developed to guard against its spread.
According to global food and agriculture financing firm Rabobank, China is expected to experience a ~30% drop in pork supplies this year, which in turn will mean a decline in total world protein supplies. The twin results of these development: an increase in prices for all proteins … and poultry will overtake pork this year as the world’s most consumed protein.
Until such time when an effective vaccine against African swine fever is developed, we can expect that production of other proteins like poultry, eggs, beef and seafood will rise. So, it seems as though poultry’s presence as the world’s most-consumed protein will likely endure. Poultry’s position as the protein leader may have stemmed from a different impetus in the United States than in the rest of the world, but everyone has ended up in the same place.
Titled Characterizing and Predicting Email Deferral Behavior, the research was compiled from interviews with Microsoft employees involved in product development, product management, software development and administrative management. All participants in the research used the Microsoft Outlook platform on a daily basis.
Dubbing it “email triage,” the study defines the phenomenon as “the process of going through unhandled email and deciding what to do with it.”
Email deferral (as opposed to moving an email message to the trash folder), occurs because “people have insufficient time to take an immediate action, or they need to gather information before they can act on a message,” the study states.
Among the factors typically weighed during triage include these questions that people ask themselves:
Do I know the answer?
Does it require any task to be done?
What is the level of complexity involved?
Can I handle it independently?
So, the reasons for putting off a reply are perfectly reasonable ones. The problem comes after the fact, because delaying an immediate reply can sometimes turn into complete inaction.
The reasons for this are understandable as well — even if they are inconsiderate to the person who sent the original e-communique:
If other people are copied on the incoming email, the recipient may assume that someone else is handling the issues raised.
Emails that contain attachments – particularly larger documents – are often put off for scrutiny at a later time, thereby delaying a response.
Emails that don’t specify a deadline for receiving a response can easily get pushed to the bottom of the pile.
Thus, a delayed response often means procrastination — or simply “out of sight/out of mind” forgetfulness as other business tasks intervene.
The published research paper can be viewed in its entirety here. Bear in mind that the University of Waterloo research studied email triage behaviors in a business- and project-management environment. It’s even more dicey when we think of sales- and marketing-oriented communications. If more than one-third of business management emails aren’t getting timely attention, we can be pretty certain that the engagement with other e-communications is lower still.
But there’s a cost to all of this delayed action (or inaction). In the “business of business,” putting off providing a response contributes to a loss of project or organizational momentum. Sometimes all it takes is inaction on the part of one or two pivotal players to make an important project initiative grind to a complete halt.
That doesn’t work well for anyone.
Sitting on my desk now, I have no fewer than five projects that have limped along for the better part of two years, simply because at too many points along the way, email responses that should have taken days (or mere hours) to be received have taken weeks or even months instead. Recurring queries to see if the projects are still active or relevant are answered in the affirmative … but then the waiting game continues.
What about your experiences? Does email triage hurt your own personal productivity or that of your office? What have you done to get around the hurdles?