The Business of Innovation is a five part series created by CNBC in association with IBM. Within each episode, Maria Bartiromo and a distinguished panel of guests discuss what it takes to be an innovation leader.

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In each episode, our co-hosts and their guests present a richer and deeper exploration of the principle, best practice, and warning flag articles found on the StrategyDriven website. Their discussions identify benefits, define implementation methods, and provide examples to help leaders increase alignment and heighten accountability within their organizations.

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A key contributor to the cost factors associated with this balanced equation is the implementation timing of risk mitigating and preventing actions. Delaying such actions defers their cost until and only if such activities are needed to reduce risk. Subsequently, the better the organization’s ability to detect and respond to performance degradation evidencing an impending event the greater the deferment related cost savings. Without this predictive capability, risk mitigating and preventing actions need to be in place at all times, heightening short-term expenses and forfeiting the opportunity to avoid these costs should the associated performance degradation never occur.

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Additional Information

Additional information regarding organizational performance measures and their thresholds can be found in the StrategyDriven whitepaper series Organizational Performance Measures. These whitepapers are available to StrategyDriven Newsletter Subscribers and the subscription is FREE! Click here to subscribe today.

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How to Get Fired!: The New Employee’s Guide to Perpetual Unemployment by Jeff Havens   Would you rather play video games and update your Facebook profile than suffer through a lifetime of stable employment? Does paying your rent seem like just too much of a hassle? Then you need How to Get Fired!, the only lecture guaranteed to ensure that you never become a productive member of society. A satirical masterpiece, How to Get Fired! introduces audiences to the Four Pillars of Poverty – fake your resume, establish your incompetence, destroy your work ethic, and alienate your coworkers – and will ‘encourage’ you to do the top ten things that most commonly cause employees to lose their jobs before wrapping up with a more serious discussion about how to successfully transition into the working world. Fast-paced, entertaining, and relevant, How to Get Fired! is utterly unique in the college market. To learn more, go to the Video Clips page and see for yourself why How to Get Fired! has quickly become one of the most popular college lectures in the country.

Well then, fight back! If you would rather play video games all day than suffer through a lifetime of stable employment, here’s exactly what you need to do:

• Dress every day as though you’ve just woken up. Nothing says ‘disinterested in advancement’ like a man or woman too lazy to bother with basic grooming.
• Treat your job like college! In other words, do what you like when you like and ignore the rest. Show up when it suits you, skip meetings you expect will be boring or inconvenient, and save all your productive energy for the night before any project is due. You’ve had several years to perfect these skills, and if you continue putting them to good use you should ensure that the IRS never bothers to audit you. After all, why hassle a person without assets?
• Gossip! Remember how you’ve used your Facebook account to complain about the various problems of others? Well, no need to stop now! And since nothing on the Internet stays private, it’ll only be a matter of time before word trickles back to your boss about what you’ve been saying about him/her. And when it does, congratulations! You’ll never miss another mid-morning cartoon marathon in your life!

In all seriousness, those techniques are very effective at helping people lose their jobs. And if that’s your goal, you can stop reading now. However, if you actually want to keep a job – any job – for any length of time, here are a few things to consider:

• Under no circumstances should your parents accompany you on any interview. Nobody will hire anyone whose mommy and daddy need to do all the talking. Seriously, if they’re coming with you, why not just sit in the car and wait to see how it turned out. Then maybe they’ll take you out for ice cream afterwards!
• Do not use your social networking email as the contact email on your resume. It’s awfully hard to take anybody seriously when they ask you to contact them at vampiregirl23@facebook.com.
• Show up every day, on time. Not terribly profound advice, but it’s a habit school – especially college – doesn’t require you to develop. Your job will, though.
• Understand that you’re not going to start at the top unless you’re related to the person who hired you, of course. Otherwise, yours will be a slow and steady progression like everyone else’s, and if you want that progression to happen faster, you’ll concentrate on proving yourself first. If you expect to advance before you’ve demonstrated an ability to handle more and more difficult assignments, then you’ll be waiting for a long, long time.

There’s more to know and plenty of other behaviors to avoid, but this should get you started. So get out there and enjoy yourself because the ability to determine the path of your life, which your education has just given you, is a more incredible experience than you might expect. Don’t blow it.

Jeff Havens is a former comedian turned college and corporate speaker. His latest comedy lecture, How to Get Fired!, helps prepare college students for their professional lives by ‘encouraging’ them to do each of the top ten things that most commonly cost people their jobs. The accompanying book, How to Get Fired!: The New Employee’s Guide to Perpetual Unemployment, is available in all popular retail outlets and online at www.Amazon.com and www.jeffhavens.com.

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Regain control of your enterprise mobility strategy with these ten steps.

Enterprise employees are increasingly on the move, relying on the ability to work from anywhere, at any time. But to make connections, they use various technologies, creating security risks and financial exposure for the company and a management nightmare for IT. To regain control of the situation, companies need a strategic approach to mobility that unifies connection types, providers, and device platforms.

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Margaret Mead (1901 – 1978)
American cultural anthropologist

Teamwork Hands Framed Award Quote: Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has. Teamwork Hands Framed Award image: A group of executives with the desire to achieve a common goal place their hands together in a gesture of camaraderie and team spirit. Present our individual performance framed award to thank special contributors who support teamwork. This attractive framed award is double matted in black and gold and includes an elegant black brass plate for personalization. See all of our Framed Awards.

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The Monsanto experience holds an important lesson: If corporate sustainability strategies are narrowly construed, they will fall seriously short. It is not enough to develop revolutionary technology with the potential to leapfrog currently unsustainable methods. Antiglobalization demonstrators have made it apparent that if corporate expansion is seen to endanger local autonomy, it will encounter vigorous resistance. Multinationals seeking new growth strategies to satisfy shareholders increasingly hear concerns from many quarters about consumer monoculture, labor rights, and cultural hegemony. As long as multinational corporations persist in being outsiders—alien to both the cultures and the ecosystems within which they do business—it will be difficult for them to realize their full commercial, let alone social, potential.

Capitalism at the Crossroads: Next Generation Business Strategies for a Post-Crisis World (3rd Edition) by Stuart L. Hart   This book takes the contrarian’s view that business—more than either government or civil society—is uniquely equipped at this point in history to lead us toward a sustainable world in the years ahead. I argue that corporations are the only entities in the world today with the technology, resources, capacity, and global reach required. Properly focused, the profit motive can accelerate (not inhibit) the transformation toward global sustainability, with nonprofits, governments, and multilateral agencies all playing crucial roles as collaborators and watchdogs. The book is written with a practical focus and should be of direct use to executives, entrepreneurs, and technologists, as well as business school faculty and students. The contents are equally appropriate, however, for those from the nonprofit world, the public sector, and society at large, especially those interested—and inclined—to collaborate with the private sector. The book carries an optimistic message. Despite the gathering storm of environmental degradation, poverty, financial crisis, and terrorism, it envisions a central and expanding role for commerce in fostering global sustainability. It foresees massive opportunities for companies both to make money and to make the world a better place, particularly among the four billion poor at the base of the economic pyramid. This book is the result of an intellectual journey that began for me nearly four decades ago. My own personal evolution is reflected in its structure and flow.

Today corporations are being challenged to rethink global strategies in which one-size-fits-all products are produced for the global market using world-scale production facilities and supply chains. Even so-called locally responsive strategies are often little more than pre-existing corporate solutions tailored to “fit” local markets: Technologies are frequently transferred from the corporate lab and applied in unfamiliar cultural and environmental settings; unmet needs in new markets are identified through demographic (secondary) data. The result is stillborn products and inappropriate business models that fail to effectively address real needs. As GE CEO Jeff Immelt recently noted, existing large corporations will be pre-empted by more nimble local players from the developing world unless they learn how to innovate from the ground up—what he calls “reverse innovation.”³⁸

Indeed, in response to the failure of traditional development assistance and large corporations’ inability to effectively address the needs of the poor, “social entrepreneurship” has burst onto the scene.³⁹ Rather than innovating from within existing institutions, this new breed of change agent seeks to launch new enterprises that address directly the problems of poverty, inequity, and unsustainability. Led by organizations such as Ashoka and Grameen Bank, there are now thousands of such fledgling enterprises around the world, each seeking to develop the new strategies and business models needed to catalyze social change.

The past decade has also seen the emergence of a new brand of financier—the “patient capitalist.” Patient capitalists are not aid agencies or large corporations, but rather groups of investors and intermediaries focused on supporting small, high-impact entrepreneurs on the ground. This emerging sector includes groups such as the Acumen Fund, E+Co, Root Capital, Grassroots Business Fund, Intellicap, Microvest, New Ventures, and Technoserve. Taken together with the rapidly growing social investing, clean tech investing, and microfinance sectors, we are witnessing the birth of an entirely new industry—impact investing. Indeed, at the 2009 Clinton Global Initiative, the Global Impact Investing Network (GIIN) was announced as a vehicle for accelerating the development of this new financial sector.

Clearly then, the next challenge for large corporations will be learning how to become “indigenous” to the places in which they operate (see Exhibit 1.2). Doing so will require that they first widen the corporate bandwidth by admitting voices that have, up to now, been excluded; this means becoming radically transactive rather than just radically transparent. It will also entail the development of new “native” capabilities that enable a company to develop fully contextualized solutions to real problems in ways that respect local culture and natural diversity. When combined with multinational corporation’s (MNC) ability to provide technical resources, investment, and global learning, native capability can enable companies to become truly embedded in the local context. It was with this realization that I embarked on a new professional challenge in 2003, having accepted the Samuel C. Johnson Chair in Sustainable Global Enterprise at Cornell University’s Johnson School of Management. Our initiative at Cornell has spawned a new effort, the Base of the Pyramid Protocol, which seeks to develop a practical approach for becoming indigenous.

Unilever’s Indian subsidiary, Hindustan Lever Limited (recently changed to Hindustan Unilever Limited), provides an interesting glimpse of the development of native capabilities in its efforts to pioneer new markets among the rural poor.⁴⁰ Hindustan Lever Limited (HLL) requires all employees in India to spend six weeks living in rural villages, actively seeks local consumer insights and preferences as it develops new products, and sources raw materials almost exclusively from local producers. The company also created an R&D center in rural India focused specifically on technology and product development to serve the needs of the poor. HLL uses a wide variety of local partners to distribute its products and also supports the efforts of these partners to build local capabilities. In addition, HLL provides opportunities and training to local entrepreneurs and actively experiments with new types of distribution, such as selling via local product demonstrations and village street theaters.

By developing local understanding, building local capacity, and encouraging a creative and flexible market development process, HLL has been able to generate substantial revenue and profits from operating in low-income markets. Today more than half of HLL’s revenue comes from customers at the base of the economic pyramid. Using the approach to product development, marketing, and distribution pioneered in rural India, Unilever has also been able to leverage a rapidly growing and profitable business focused on low-income markets in other parts of the developing world. Not surprisingly, Unilever has encountered challenges and bumps in the road in its journey to reach the base of the pyramid; these are discussed in later chapters. Importantly, however, through its strategy, the company has created tens of thousands of jobs, improved hygiene and quality of life for millions, and become a partner in development with the poor themselves.

The Road Ahead

To summarize, the greening initiatives of the late 1980s and early 1990s were revolutionary, if insufficient, steps: They repositioned social and environmental issues as profit-making opportunities rather than profit-spending obligations. More recent “beyond greening” strategies are even more significant: They hold the potential to reorient corporate portfolios around inherently clean technologies and create a more inclusive form of global capitalism that embraces the four billion poor at the base of the economic pyramid. If narrowly construed, however, such strategies still position MNCs as outsiders, alien to both the cultures and the ecosystems within which they do business. The challenge is for multinationals to move beyond “alien” strategies imposed from the outside to become truly indigenous to the places in which they operate. To do so will require companies to widen their corporate bandwidths and develop entirely new “native” capabilities that emphasize deep dialogue and local codevelopment. A more inclusive commerce thus requires innovation not just in technology, but also in business models, business processes, and mental frames.

Indeed, over the past ten years, “Clean Technology” and “Base of the Pyramid” strategies have exploded onto the scene, and social entrepreneurship has emerged as a new force for innovation. Each strategy provides important pieces to the sustainable enterprise puzzle: The former contributes “next generation” technologies with dramatically lower environmental impacts, and the latter creates innovative new ways to reach and include all of humanity in the capitalist dream. Yet each also comes with its own baggage and blind spots. Therefore, a crucial next step is to converge these strategies into what I call the “Green Leap.” Such a strategic convergence recognizes that clean technologies are almost always “disruptive” in character. (That is, they threaten incumbents in current served markets at the top of the pyramid.) As a result, the base of the pyramid might be the best place to focus initial commercialization attention. At the same time, the Green Leap approach also recognizes that successful strategies must be cocreated with communities and local partners so as to ensure cultural embeddedness, rather than imposing technological solutions from the top down.⁴¹

Given the urgency of both the need and opportunity described here, Cornell’s Center for Sustainable Global Enterprise launched the Cornell Global Forum on Sustainable Enterprise—an initiative to accelerate the rate of change toward this Great Convergence in the world. Indeed, nearly 100 of the world’s leading practitioners on the forefront of the “Green Leap” participated as delegates to explore entrepreneurial strategies for the growth and scaling of ventures in the “convergence zone.” The inaugural Global Forum was held in New York City, June 1–3, 2009, and the plan is to build this initiative into a growing global social network and an ongoing business movement.

Thus, as we enter the second decade of the new millennium, capitalism truly does stand at a crossroads. The old strategies of the industrial age are no longer viable. The time is now for the birth of a new, more inclusive form of commerce, one that lifts the entire human family while at the same time replenishing and restoring nature. The path to a sustainable world, however, will be anything but smooth. It will be a bumpy ride strewn with the remains of companies that variously dragged their feet, made promises they could not keep, bet on the wrong technology, collaborated with the wrong partners, and separated their social and business agendas. Only those companies with the right combination of vision, strategy, structure, capability, and audacity will succeed in what could be the most important transition period in the history of capitalism.

-This is part 3 of a 3 part series excerpted from Stuart L. Hart’s, Capitalism at the Crossroads (3rd Edition), published by Wharton School Publishing, an Imprint of Pearson.

Sources

38. Jeffrey Immelt, Vijay Govindarajan, and Chris Trimble, “How GE Is Disrupting Itself,” Harvard Business Review, October 2009.
39. See John Elkington and Pamela Hartigan, The Power of Unreasonable People, (Boston, MA: Harvard Business Press, 2008).
40. Brian Ellison, Dasha Moller, and Miguel Angel Rodriguez, Hindustan Lever: Reinventing the Wheel (Barcelona, Spain: IESE Business School, 2003).
41. Stuart Hart, “Taking the Green Leap,” Cornell University, Working Paper, 2009.

Stuart L. Hart, author of Capitalism at the Crossroads, is the Samuel C. Johnson Chair of Sustainable Global Enterprise and Professor of Management at Cornell University’s Johnson School of Management. Professor Hart is one of the world’s top authorities on the implications of sustainable development and environmentalism for business strategy. He has published over 50 papers and authored or edited five books. His article “Beyond Greening: Strategies for a Sustainable World” won the McKinsey Award for Best Article in the Harvard Business Review for 1997 and helped launch the movement for corporate sustainability. To read Stuart’s complete biography, click here.

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Episode 35 – Making Change Work: If Decisions Are Always Rational, Why Are Changees Resisting? explores the rationality of decisions and their impact on change management. During our discussion, Sharon Drew Morgen, the New York Times bestselling author of Dirty Little Secrets, shares with us her insights and illustrative examples regarding:

• why decisions are always rational
• what causes resistance to logical change
• what benefits can be gained from resistance
• how resistance can be avoided when making a change

Additional Information

In addition to the outstanding insights Sharon Drew shares in Dirty Little Secrets and this edition of the StrategyDriven Podcast are the resources accessible from her websites, www.NewSalesParadigm.com and www.BuyingFacilitation.com.   Sharon Drew’s book, Dirty Little Secrets, can be purchased by clicking here.

Making Change Work!
This podcast is the second in a series that teaches leaders how to make change work. Coming editions of the Making Change Work series will explore the steps to gaining the buy-in and committed effort needed to implement change successfully. We’ll cover topics including:

• Why is buy-in necessary and how to achieve it?
• Putting it all together, a radical approach to change management: real leadership

Final Request…

The strength of our community grows with the additional insights brought by our expanding member base. Please consider voting for us on Podcast Alley by clicking here. Casting your vote for the StrategyDriven Podcast improves our ranking and helps us attract new listeners which, in turn, helps us grow our community. Thank you again for listening to the StrategyDriven Podcast!

Sharon Drew Morgen is a New York Times bestselling author and developer of a change management model based on buy-in that she’s written about in her latest book Dirty Little Secrets. She is the visionary thought leader behind Buying Facilitation^®, a decision facilitation model that focuses on helping buyers and those who would be impacted by the accompanying change manage their internal, unconscious, and behind-the-scenes issues that must be addressed before they purchase anything or buy-in to the requested change. She has served many well known companies including: KPMG, Unisys, IBM, Wachovia, and Bose. To read Sharon Drew’s complete biography, click here.

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The Success Principles: How to Get from Where You Are to Where You Want to Be by Jack Canfield and Janet Switzer   The Success Principles is a roadmap for anyone-from marketing professionals to small business owners, and from teachers to students and parents — striving to achieve their professional and personal dreams and goals. Touching on every aspect of our lives, The Success Principles offers 64 practical and inspiring principles to get any aspiring person from where they are to where they want to be. It’s an encyclopedia for mastering life… so you can achieve any dream, become who you want to be, and make your life exactly as you want it. This is one program you can’t leave out of your success library. The Success Principles contains all the key elements of a successful, happy life, together, in one place!

This is usually a private teleseminar for The Emmerich Group member clients. However, as a special gift to our audience, Roxanne is extending an invitation for StrategyDriven readers and listeners to participate in this information rich event. This is a great opportunity to bring your whole team together for a Lunch ‘n’ Learn or team learning opportunity.

Join Roxanne and Jack for the call on September 8, 2010 at 12:00 noon Central for one hour to discover:

• How to get from where you are to where you want to be.
• The biggest difference between people who are successful and those who aren’t.
• How to change the outcome of any event, simply by changing your response to it.
• Why you should drop out of the “Ain’t It Awful” Club and instead surround yourself with success, positive and nurturing people.
• How to complete past projects, heal past relationships and process old hurts, so you can embrace the future.
• How to ask for and get everything you want…from people who can give it to you.
• How to deal with fear and uncertainty.

A teleseminar like this usually costs $500 – $1000 or more, depending on the size of your company. We are inviting you and your team for FREE as a special gift to prepare you for a better 2010 – regardless of the economy.

Registration is easy! To sign up, go to www.ThankGoditsMonday.com/jack-canfield.

Space is filling up quickly so be sure to sign up right away!

Clear your schedule and register TODAY!

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The Definitive Guide to Government Contracts: Everything You Need to Apply for and Win Federal and GSA Schedule Contracts by Malcolm Parvey and Deborah Alston   In the new book The Definitive Guide to Government Contracts, Malcolm Parvey & Deborah Alston take you step-by-step through the GSA contract proposal – initial research; understanding the requirements; finding the correct schedule; and completing the paperwork. The book also shows you how to upload your contract details to GSA’s online site and prepare your Schedule Contract pricelist.

What is a “GSA Contract” anyway? Picture yourself on bended knee, proposing to the GSA. Tell them all about yourself….what you do, your terms and conditions, how the two of you will make a great team! As long as your proposal meets their standards they will award you a contract, as this is a non-competitive proposal. The GSA contract proves to a potential federal buyer that you are a responsible vendor.

Remember – a GSA contract is NO guarantee of sales. It has been compared to getting a hunting license – you still have to go out there and hunt for the sales, but now you have some legitimacy in the eyes of procurement officers. You have proven your willingness to dedicate time and resources to getting Approved Vendor status.

Minimum Sales Requirement: You will NOT be awarded a GSA Schedule contract unless the Contracting Officer estimates your sales will exceed $25,000 in the first 2 years and $25,000/year thereafter.

Patience and Perseverance: How long do you think it would take you to become a vendor of Wal-Mart or IBM or General Electric or any other Fortune 500 company? How hard would it be to get an appointment to make your sales pitch? How long would it take you to prepare the presentation? Fly to the corporate offices? How many more appointments would it take before you get any results?

The federal government is the biggest customer in the entire world for what you do. They have opened the door and asked you to make your presentation from the convenience of your office. They offer staff to assist you; they are fair and impartial; and you never have to take them to lunch!

Return on Investment (ROI). No doubt about it, a GSA Contract can be a wonderful opportunity, but you need to be aware of the investment of time and effort you need to make in order to submit, maintain and manage it. Remember, a GSA contract does NOT guarantee sales. If you make the effort to submit the proposal but do not subsequently work to market it, you risk making very few sales, and your time will have been wasted. Be prepared to do some initial research; find out if there is a demand for your products and services, and who your competition will be.

Deborah Alston has worked for many years with small businesses, helping them with all aspects of federal government contracting. She has consulted with small businesses from many different industries, working closely with them to submit their GSA Schedule proposal; the Department of Defense’s ‘E-Mall’ proposal, and several other industry-specific federal procurement programs. In 2008, she co-authored the successful book Winning Government Contracts (Career Press 2008) with Malcolm Parvey. The book showed small businesses how to get involved in selling to the federal government, taking a step-by-step approach, and assuming no previous knowledge of this marketplace. In 2010, she partnered with Malcolm Parvey again to co-authored The Definitive Guide to Government Contracts (Career Press 2010) which included details on how to research, submit and maintain a GSA Schedule Contract award. Deborah can be reached at deborah.alston@dkagov.com.

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