Tuesday, November 25, 2008
The Payments Meta Blog
His creativity most recently revealed itself in a helpful tool I call the meta blog, a highly networked feed to more than 25 payments related blogs. Check it out at www.paymentsnews.com/otherblogs-2.html. As always, some (many?) posts are not much more than personal opinion and unsubstantiated rhetoric; others contain insightful, provocative content. Enjoy. And nice work, Scott.
Wednesday, October 29, 2008
The Inter-connectedness of Seemingly Trivial Things
Take the simple example of a fire in a small building outside of Chicago that disrupted telephone service for much of the country. Why? Because "It seems that most transcontinental land-lines passed through that single building and they were destroyed in the fire." Excuse me? How could somebody not know, or know and not do something about, that vulnerability? And, why did the price of anti-freeze go up 300% a while back? Turns out ethylene glycol was made in only two places in the US and one of them, a small plant in Idaho, burned down with the obvious result.
You'll enjoy this article; it's short and punchy and can help you ask questions that could potentially illuminate a blind spot, or two.
Wednesday, October 8, 2008
Al-Zawahiri Didn't Care if You Starve .... Neither Does Your Competition
What we seem to be forgetting & why we're in trouble
Well obviously, it's complex. But I think a lot of it stems from 9/11 which was so classic it now seems grimly inevitable. I wrote about the tactic in a corporate setting in a CorpWar way back in March 2003 (to review go here: Concentration of Force). Al-Zawahiri, one of Osama bin Laden's key strategists, knew the only way to bring us down, arguably the most 'powerful' civilization in history, was to help us bring ourselves down. Aside from our spirit America is also a business and as such we 'behave' like a business. And all businesses have their weaknesses which are too often discernable to our competition (e.g. al-Zawahiri, or picture your own competition-there really is no difference). So al-Zawahiri helped come up with this cheap little plan, pretty crude really, and sent a huge arrow dead center into our economic heart. And, let's face it, it's been pretty rough sailing ever since. And if you don't think so you and I don't live in the same galaxy.
If you think your business is any different you are part of the problem. You need to think better. You need to think stronger. We all work for our stakeholders. We OWE them our best, now more than ever, because things are starting to fall apart. And if we don't give it to them we should be replaced. Period. This is no time for dull, slacker, thinking folks.
I've taken on the role of new business development for ScreeningInterviews.com (technically a spin-off) and have noticed a couple of alarming things. To put this in context the service does screening interviews of a client's "short list" of an open job's candidates and makes those recordings available to management so they can efficiently comment on whether or not they think a candidate would be a good fit to the company. Pretty simple.
Now, managers that use the tool typically love it but, conversely, some really hate it (actually loathe everything about it). When I drill in to understand why, it's typically because "things work well enough as they are". All I can say is stop, RIGHT THERE. This is the kind of thinking that some clever guy in a corporate cave somewhere (a.k.a. your competition, some of whom you probably aren't even aware of) is waiting to exploit. This mindset insists "things are cool enough now, we'll survive". Really? Think again. If you're sitting around thinking your business is some sort of invincible fort I GUARANTEE you somebody, somewhere, is x-raying your walls to find weak spots. They are focusing on YOU, trying to find YOUR Twin Towers. And we all know the potential result.
Another thing I've noticed because of ScreeningInterviews.com is the quality of many of the candidates (the resumes are supplied by the client's HR department or retained recruiting companies-we have no control over what we get). I do some of the interviews myself, and listen to many of the others and I'm often shocked at what I hear. We typically interview 4-5 candidates per position and often 1 or 2, sometimes even 3 of these candidates are pretty poorly qualified for the position (even internal candidates up for internal transfer). Sometimes egregiously so. It's just so vivid in the recording that they can't do the job you have to ask yourself, how did these people get on a short list? Sometimes, of course, the process lets somebody really shine that looks weak on paper (that's great when it happens, by the way), but more often we uncover expensive hiring mistakes waiting to happen. Often their only real skill is knowing how to game the hiring system. Thank god we help weed them out.
Look, you need to impress everybody around you, everybody in your company, that there are barbarians at the corporate gate, because functionally there really are. This is no time for lazy, yesterday thinking because competitors that need to eat are hunkered down trying to figure out how to steal your food. This is capitalism folks. Your competition doesn't care if you starve.Think about it.
Feel free to contact me about http://www.screeninginterviews.com/. It's useful at helping you efficiently identify winners and avoid losers.
TalTal Newhart (e-mail)ScreeningInterviews.com847.462.0632 dd
Friday, October 3, 2008
The WSJ Had It Right
Some how this has all been turned around, and the concepts of personal responsibilty and foresight have been conveniently forgotten. At the risk of sounding a bit Clintonian, "It's the payments, stupid". Non-performing, over valued mortgages are, at the root, the consumers problem. Wall Street doesn't owe Main Street a life preserver; Main Street didn't suffienctly manage their personal financial matters past their own nose. It's not all Bush's fault or those greedy credit pushers on Wall Street, or Freddie or Fannie's problem. Its an American problem, a society whose savings rate has consistently declined over the last 10 years, yet leads the world in the consumption of extraneous luxury goods like personal electronics and high-end purses, the natural result of a self-centric culture consumed with finding someone else to blame when something goes wrong.
The ability to apply small personal disciplines to our daily lives as practical steps toward the creation of an envisioned improved future state is a lost character trait in our culture. After all, we're told if we shop at WalMart we'll "live better", a pithy meaningless promise that subliminally encourages the direct connection between shopping (spending money) and living 'better'. What if WalMart's adds said "Stay at home once in a while and put that $500 you would have spent in our stores toward your mortgage prepayment. Then you'll live better"? Seems almost silly, doesn't it? But, it's our opinion a good bit more personal accountability all around for choices and actions, or the lack thereof, would do our economy good.
Tuesday, September 30, 2008
On Investing....What's It All Gonna Mean, Anyway?
A functional central bank, something which the US didn't have in 1929, and the global nature of capital markets should prevent the US economy from taking a nose dive into the abyss. But the question remains as to where the safe play for investments remains....is it simply under the mattress for a while?
I'd be interested in your thoughts. Longitude generally isn't engaged on investment topics but the swirl of the markets has us talking, and thinking. Clearly, there will be shake out in the payments landscape from this realignment of organizations...I mean, can Lehman really continue to 'prefer American Express' if they're owned by Bank of America? But, there are more profound fundamentals I think we'll see changing over the next several months. What's your view?
Tuesday, September 16, 2008
Change: We're All For It....As Long As It's Familar!
More provacativley, however, I was reminded of how many of these types of forums I've attended over the years seldom include the real game changing agents. Somehow, the Elon Musk's of the industry, who built a huge consumer data base of online transactors by offerring ‘free online checking’ via x.com using what at the time seemed like obscene amounts VC money, don't get the invitation to share their visions. They're just too scary and represent too much change to be included in the intelectual excercise.
Musk wasn't a banking maverick; he was just a maverick who believed he had a better idea about moving value between two parties. If you don't know the story, Musk went on to convert this huge new community of consumers into the world of PayPal, today the single largest global base of monetary transfer. As PayPal came on stream, the traditional networks (Amex, Visa, etc) and their constiuent institutions comforted themselves by repeating “Its only auctions, its only auctions” without acknowleging the true reality of PayPal's ability to seriously change the rules of the game down the road. If, or perhaps more aptly when, PayPal decides to "go retail" it could well represent a massive C-change in the retail payments landscape and potentially shift the control of payments question back toward the payee.
In the end, Chenault and company are admitedly smart guys. But, its also in their personal self interest to not change too much or too fast. Otherwise, they risk disenfranchising themselves and their networks. We all like change, if its something we’re familiar with!
Saturday, September 13, 2008
Coach or Crony?
A “crony” is a good-ole-boy (or girl) who supports another person’s status quo. Cronies don’t challenge each other. They encourage the old, safe ways and with flattery attempt to make the fixed traits of their associates look good. A coach doesn’t care if you look good or not. The effective coach strives to disrupt the status quo of those he or she works with and make them stretch. The crony makes you wary of challenges, especially if the learning involves the risk of failure. The good coach orients you toward learning and the changes that are necessary to get you from where you are to where you say you want to be, even if that involves the risk of things looking worse before they get better.
Be wary when choosing a coach who’s main technique is that of cheering and excessive praise. There is nothing wrong with encouragement and when used at the proper time, can help to solidify gains and progress. But first we need to make the changes and do the hard work of moving out of old comfort zones. A coach worth hiring knows how to work with growth minded individuals and show them the strategies of change. Then that same coach also knows how to help you maintain the changes you took the risks to make.
Interview the coach you are considering. Determine if that coach uses a fixed mindset or a growth mindset. An easy test is to know if the coach praises effort, strategy and improvement in the people he or she works with or intelligence and talent. Beware the coach who places emphasis on the later because those aspects of a person are fixed.
Paul W. Anderson,
BulletProofCoach.com
Monday, September 8, 2008
Farewell Harley Kid
Monday, August 18, 2008
Organizational Theory - Spider or Starfish
The rise of social networks, from Craig’s List to Zedge to LinkedIn, create an enormous opportunity to capture in real time the pulse, direction and implications of markets as well as facilitating reactions to new opportunities equally immediate. But, can social networks run a company, deliver online security or ensure the right level of patient care when and where needed? As Brafman and Beckstrom point out, “You certainly don’t want Johnson from seat 28J to decide that right about now is a good time to land” if you’re trying to run an airline.
I found their research entertaining and their core thesis well constructed. And, a good reminder to continue to push decision making to the lowest possible level, which also puts the burden of clear communication on leadership and management. But, I’m interested in your thoughts and perspective. Can ‘headless’ organizations thrive against stiff competition? Can centrally run organizations develop starfish-like qualities in certain divisions or departments and subsequently improve their timing and quality of reactions to market changes? Let me know…post your comments!
Tuesday, August 12, 2008
Get Real About Mobile Remittances and Banking
TowerGroup goes on to suggest the intersection of channel investments in mobile banking and payments by banks is essentially self-serving, and will create the scenario where the combination of mobility and remittances will most directly benefit the banks as they emphasize more growth efforts among unbanked customer segments. “The inevitable convergence of remittances and mobility offers new opportunities for banks to grow this market by making payments faster, more convenient, more secure, and more accessible to a greater number of senders and recipients,” said Virginia Garcia, co-author of the research and senior research director in the Cross-Industry practice.
On the sending side in developed markets, mobile remittances represent an avenue for banks to initiate relationships with unbanked consumers – who are heavy users of both remittance products and mobile phones – with an eye to fueling deposit inflows through later cross-sale of traditional banking products like checking accounts. On the receiving side, mobile remittances will spur evolution of the financial sector in developing countries and economies, so recipients can direct remittances to checking accounts, bill payments, and microfinance applications.
Garcia also recently issued another report examining the overall evolution of mobility in the financial services sector, titled “Transforming Customer Interaction: Mobile Banking Delivers Adoption as Wheels of the Market Align.” As with mobile remittances, mobile banking overall is fast emerging as an indispensable business asset for banks to retain customers and reach new segments (youth, ethnic, unbanked) to secure deposits.
TowerGroup estimates every month until the beginning of 2009, between 150 and 300 banks and credit unions in the United States will sign contracts for mobile banking solutions. Mobile banking will reach close to 6 million users by the end of 2008, and TowerGroup forecasts 42 million US active users of mobile banking by 2012.
“We believe the rise of next-generation mobile banking and payment solutions will forever change banks and payments companies,” said Garcia. “Mobility has the potential to enable timely, relevant, and actionable outreach that will ignite customer engagement unlike any other channel. Ultimately, TowerGroup expects mobile phones will do for financial services what Apple iPods did for music – foster a significant change in the way consumers access services and suppliers deliver them.”
The TowerGroup report on mobile remittances, titled “Disruptive Technology Spawns Market Revolution: The Ascent of Mobile Remittances into the Mainstream,” is co-authored by Charul Vyas, an analyst in the Emerging Technologies practice at TowerGroup.
What are your thoughts? Agree? Disagree? Post your thoughts!