Archive for the ‘Challenges’ Category

Disrupting Academia

Academia has become rather frustrating.  Out of control costs have been leading to spiraling students debts, exceeding the total US credit card debt.  Increasingly narrow and unreasonable criteria for tenure have led to people spending endless years in servitude.  The overall academic value proposition has been completely eroded for all but the administrative leadership and […]

Population Health — For Cars

I have been thinking about population health for people.  Population health, in the fullest sense, requires integrating health, education, and social services to keep a defined population healthy, address their health challenges holistically, and assist them with the realities of being mortal.  It is a very ambitious idea. Why do I think this is possible?  […]

Convincing the World to Support Your Ideas

Government agencies, private sector companies, and philanthropic foundations have billions of dollars to support your ideas, ranging from research projects to community development initiatives.  How can you gain access to these resources? Millions of people are asking this question.  So, there are lots of competitors and your overall chances of success are quite small.  You […]

A Real Train System

What if the US had a modern state of the art train system like other developed countries?  The trip from New York to Washington would take one hour rather than three plus hours.  The trip from Atlanta to Washington would take three hours rather than thirteen hours.  This would be a great boon to personal […]

The Fragility of Optimized Systems

Delta Air Lines designed and optimized a system to pack the seats on their flights and extract maximum revenue from passengers by charging for every element of an airline trip. The process is called revenue maximization. A senior Delta executive once told me, “We try to pull feathers until just before the goose honks.” Delta’s […]

Beyond the Affordable Care Act

What are we trying to do by rethinking the ACA?  Perhaps we are seeking an ideologically acceptable ACA, one that the Republicans get credit for rather than the Democrats.   On the other hand, is insurance coverage really the ultimate goal?  I don’t think so.  We want a healthy and educated population that is competitive in […]

Professional Relationships

The wonders of the Internet and social media seem to have radically changed the nature of relationships.  This is perhaps most apparent in personal relationships where email, texting, Facebook, Twitter, and other offerings provide constant updates on what a vast network of family and friends are doing and thinking at the moment.  Many people spend […]

Why You Hate Your Airline

The October issue of Consumer Reports outlines “Secrets to Stress-Free Flying.”  This 14-page article provides an interesting history of the airline industry, including the forces that drove your once loved airline to become an object of intense scorn and hatred for most passengers. Over recent years, the airlines have refined their strategy for making record […]

The Disruption of Autonomous Vehicles

Many pundits argue that driverless cars will soon be here.  You can argue with the timelines they articulate, but it is difficult to disagree with the distinct possibility of the technology eventually maturing and becoming an increasing portion of the vehicles on the road.  This technology will be truly disruptive. There will be the benefits […]

Clock Speed in Academia

An industry executive that chaired an advisory board at a major research university once commented to me that academia’s unit of time is the semester.  “When a faculty member says he will get back to me right away, he means by the end of the semester.” We measure performance of computers in cycles per second, […]

Student Debt and Jobs

The August 2016 issue of Consumer Reports summarizes a much longer report from revealnews.org on student debt.  Their headline is 42 million people owe $1.3 trillion.  Their survey found that “45% of the people with student loan debt said that college was not worth the cost.  Of those who said college wasn’t worth the money, […]

The Allure of Quests

I really enjoy stories, and particularly movies, where an older man and younger woman are on a quest – perhaps to solve a mystery, right a wrong, or flee an evil force.  They are thrown together and their shared aspirations drive them closer as they work together to pursue their quest.  They learn from each […]

Thoughts on Teaching, Classrooms, and Computers

The purpose of teaching is to enable learning and, over time, mastery.  Classrooms and computers – smart boards, workstations, laptops, tablets, smart phones, etc. – are enablers of learning.  The most important enabler is student engagement.  This can be a challenge as ubiquitous digital devices often lead to significant student multi-tasking, much of it irrelevant […]

Autonomous Vehicles

Various pundits are projecting that by 2020 – just four years – the driving of cars and trucks will be completely automated.  Vehicle services, whether for consumers or businesses, will be readily available for very reasonable prices.  I will not need to own a personal vehicle and my business can dispense with its fleet of […]

The Quartet

In “The Quartet: Orchestrating the Second American Revolution, 1783-1789,” Joseph J. Ellis chronicles the planning, drafting, and ratification of the US Constitution and Bill of Rights in 1789.  The title refers to George Washington, Alexander Hamilton, John Jay and James Madison.  These four men, with support from Robert Morris, Gouverneur Morris and Thomas Jefferson, led […]

The Big Short

Just watched this movie this week, after having read many of the books published on the Great Recession, as well as having served on a National Academy study committee of what happened.  During this study, I had a chance to chat with the second most senior executive at one of the major banks involved, one […]

NFL Denies Referee Conspiracy

There is growing evidence that NFL referees have been instructed to make calls – particularly pass interference calls and false start calls – to control the outcomes of NFL games.  The NFL vehemently denies these accusations, but the data are very clear.  The NFL knows the outcomes that will maximize television revenues as well as […]

The New Reality

Our operatives have uncovered the motivation and reasoning behind various presidential candidates now emphasizing what many of them are calling the “new realty.”  This reality relates to their personal histories, climate change, economic prospects, and so on.  All of the candidates have “repositioned” their personal stories to gain voter support. One candidate, born to immense […]

The Economics of Retirement

My last post addressed my frustration with a 60% taxation rate that left me wondering if my role was mainly to provide resources to be redistributed to other, undoubtedly needy, people who do not pay taxes.  The 40% that I get to spend barely covers my financial commitments.  So, how do I ever get ahead […]

Income Taxes

Over the past three years, my tax rate has increased to over 60% of my income.  This includes Federal and State Income Taxes, Social Security Taxes, Workmen’s Compensation, Medicare Tax, Sales Tax, and Property Taxes.  This tax rate, combined with the costs of living in an area where I earn a high enough income to […]

New and Improved Frequent Flyer Programs

The airlines have long recognized the inherent liabilities of their frequent flyer programs.  There is – or was – an enormous legacy of free flights waiting to be redeemed by frequent travelers who planned to take their families on vacations or use their nest egg of points for retirement travel.  The airlines, however, are working […]

Latest Airline Tag Line

New York — In reaction to a flurry of consumer complaints about major airlines’ new “zero fare” model, one airline has unveiled a new marketing pitch, with the following tag line. “We don’t need you — take the bus!” Responding to pundits’ criticisms of this being ridiculously “over the top,” an airline spokesperson responded, “We […]

Five Million Jobs

A few years ago, I co-chaired the National Academies Healthy America Initiative.  The members of this committee came from both the Institute of Medicine and the National Academy of Engineering.  Our assignment was to wrestle with issues surrounding the effectiveness and costs of healthcare delivery.  However, we wanted to put this in a larger context.  […]

Fully Understanding

I have been lately digesting an enormous amount of material on biological systems and urban systems.  For both systems, I am interested in their health.  The focus in biology has been on cancer and understanding the signaling mechanisms whose aberrations allow uncontrolled cell growth.  Within cities, I have been exploring urban resilience, including historical narratives […]

Airlines and Quality of Service

The latest debate on air travel concerns whether a person should recline his or her seat if it inconveniences the long-legged person behind them.  Further, should the person behind be allowed to use the Knee Defender device that blocks a seat from reclining?  There have been thousands of impassioned opinions posted on the overall issue. […]

Plucking Geese

Over the past two years, I have become a frequent train traveler between New York and mostly Washington, but also Albany and Boston.  The Acela is more expensive than flying but much more convenient and usually on time. The other Amtrak trains provide much poorer service. Delays are frequent; an hour or more is not […]

Complexity Overload

How many user names and passwords do you have? Do you need passwords with exactly six or eight or ten characters including as least one numeric character and one non-alphabetic or non-numeric character? How often are you required to change them for security reasons?   Do you have a list, tucked away physically or electronically that […]

What Might Happen

Various pundits in sundry domains attempt to predict what will happen.   In domains such as climate change, urban systems, and national politics, which are laced with human and social phenomena, such predictions are folly.  There are far too many possible ways in which individuals and social groups can behave in response to evolving events, whether […]

Converging Experiences

Recently, I went to Kara Schlichting’s lecture, “From Dumps to Glory: City Planning, Coastal Reclamation, and the Rebirth of Flushing Meadow for the 1939-1940 New York World’s Fair.”  The next morning, I read Russ Buettner’s article in the New York Times, “They Kept a Lower East Side Lot Vacant for Decades.”  That afternoon, I went […]

What to Keep

Enterprise transformation involves redesigning or creating new work processes that enable remediating anticipated or experienced value deficiencies.  This implies that some aspects of the enterprise have to be discarded.  Why not discard everything?  That is certainly as option, but it is called liquidation rather than transformation. A central question is what do you keep and […]

Execute, Execute, Execute

The lack of committed visionary leadership will doom any transformation aspirations.  However, will the presence of such leadership assure success?  The simple answer is, “No!” Great aspirations and ideas need compelling plans to succeed.  Further, these plans have to be successfully executed to realize these aspirations.  Quite often, plan fall prey to inabilities to execute.  […]

Three Strikes and You Are Out

The poor performance of the US healthcare system can primarily be attributed to three things.  First, the “fee for service” payment model incentivizes providers to provide as many services as possible to maximize reimbursements from insurers, either private or public.  Second, the lack of integration of archival and operational information systems undermines the delivery of […]

The Transformation Debate

Who is more American?  Is it the Kenyan or the Mormon?  Who created or destroyed more jobs?  Is it the community organizer or the private equity economizer? The candidates are focused on attacking personalities and circumstances rather than reality. But, what really happened to blue collar jobs?  This answer is straightforward. Our blue-collar laborers became […]

It’s Really Tough

You are leading a very successful enterprise in airplanes, automobiles, mobile devices, healthcare — or perhaps higher education. The business model that got you to where you are — successful, profitable — seems to be faltering.  The growth of revenue is diminishing while costs are escalating.  The costs of infrastructure — physical, financial and human […]

Report From the Front

Over the past two semesters, I have been helping Georgia Tech undergraduate teams to contribute to transforming healthcare delivery.  Their senior “capstone” projects have focused on patient in-flow (Emergency Department), in-patient operations (Operating Rooms) and patient out-flow (Discharge and Bed Turnover).  Three eight-person teams addressed each of these areas of hospital operations. The problems these […]

Why Transformation Is So Difficult

It is fairly common for the perceived benefits of current market offerings to fade and new value propositions to displace older offerings.  As noted in earlier posts, Schumpeter called this process “creative destruction.”  Steel ships replaced iron ships, which replaced wooden ships.  Microprocessors subsumed transistors, which replaced vacuum tubes. Change happens and creative destruction causes […]

Worst Practices

I have recently been involved with an enterprise that has somehow managed to embrace just about the worst transformation practices possible.  It all started with the vocabulary the leaders chose to employ.  They managed to paint a transformation picture that they apparently had no intention of pursuing.  While they portrayed fundamental change, their actions totally […]

So Who Are the Creators?

So, the game plan, according to me, is to create the future.  Who is on the team?  You might think, based on my last post, that the team is all engineers and scientists.  But, that is not how it has worked in the past. Regardless of the technology — steamboats to automobiles to computers — […]

Creating the Future

I am a student of history, particularly economic history.  Lately, I have been immersed in reading about technological innovation in the late 19th and early 20th centuries.  Transportation was transformed from stagecoaches and steamboats to railroads, automobiles and airplanes.  Electricity transformed communications from mail, telegraph and telephone to radio, television and now Internet. In the […]

Market Forces

Change happens when it is forced.  The force can be an opportunity or a threat, perhaps embodied in a crisis.  In many domains, the forces for change are manifested as market forces.  Competitors, large or small, recognized or unrecognized, are the sources of market forces.  Thus, change happens when there is competition to meet market […]

Disrupting the Status Quo

A few months ago, a colleague asked me, “What if our big idea does not get approved by the powers at be?”  I said, “We will start an insurgency and just do it anyway.”  We are still waiting for approval, and may get it, but we are quickly progressing despite the lack of formal blessing.  […]

Stewards of the Status Quo

There are many impediments to addressing and solving executives’ toughest problem – see my last post.  Resource limitations – time, money, and people – can obviously be impediments.  Less obvious, and often much more troublesome, are the stewards of the status quo.  These stewards include people and organizations who are determined to keep everything as […]

The Toughest Problem

Over the past two decades, I have often asked executives about their toughest problem.  Not surprisingly, they use many different words to answer this question.  However, there is quite a consensus around, “Running the enterprise I have while trying to create the enterprise I want.” Keeping the existing enterprise running tends to be a very […]

The Current Communicator

I recently visited the Ronald Reagan Presidential Library.  One can question the whole “City on the Hill” imagery, but the Great Communicator was undoubtedly able to evoke a positive emotional response from me three decades after the original narrative. How does this compare to the Current Communicator? Both Presidents inherited troubled economies– one could easily […]

He Still Looks Like Him

Last Sunday, I had breakfast at the Beachcomber, which is right on the beach at Crystal Cove, just south of Newport Beach, California.  The waitress mentioned that many celebrities eat there often.  She talked about a particular performer, her favorite, and said, “He still looks like him.” I asked what she meant by such an […]

What Is or What If

Much of contemporary analytics focuses on tabulating and portraying characteristics of existing systems, whether they are for energy supply, health delivery or a wide range of other complex systems.  This type of analytics addresses “what is” or in many cases “what was.” This approach is backward looking, which makes a lot of sense if there […]

Controlling the Costs of Healthcare

We continue to anguish over escalating healthcare costs.  To gain control of these costs, we need to understand one essential equation.   The total cost of healthcare is Total Cost = Costs Per Use x Number of Uses Careful design of delivery processes to eliminate unwarranted care process variations can decrease the costs per use.  Variations […]

Replacing the Old Order

I recently read John Lynch’s Simon Bolivar: A Life (Yale University Press, 2006).  Bolivar played the central role in freeing six Latin American countries from Spanish colonialism.   The eventual domination of his armies and his subsequent nation building destroyed the old colonial order.  However, creating the new order was a much more daunting task than […]

Moneyball in Academia?

I just finished reading Michael Lewis’ Moneyball: The Art of Winning an Unfair Game.  Lewis relates the story of the Oakland Athletics and their ability to use scientific management to maximize wins per dollar. I could not help but wonder how their empirically derived principles might apply to academia. What is the equivalent of On-Base […]

Transforming Colombia

I gave a keynote lecture on “Enterprise Transformation” at the Logistics International Congress last Wednesday in Bogota, Colombia.  I also listened to several other talks from government officials in various ministries, as well as a few academics.  I spent quite a bit of time talking with a wide range of people.  Overall, I learned much […]

Transforming Public-Private Enterprises: Defense

National defense, and acquisition of weapon systems in particular, has long been a target of transformation.  The Packard Commission in 1985 provided a very reasonable set of recommendations for reforming defense acquisition processes.  These recommendations resulted in relatively minor changes.  Blue ribbon committees both before and after the Packard Commission had comparably minor impacts. President […]

Transforming Public-Private Enterprises: Education

We often see dire assessments of our educational systems.  K-12 is judged to be quite poor compared to other developed countries, as reflected in comparisons of educational achievements across countries.  This is particularly true for STEM — science, technology, engineering, and mathematics.  More broadly, our high school graduation rate of roughly two thirds means that […]

Transforming Public-Private Enterprises: Healthcare

Healthcare presents a major challenge for the U.S.  We pay twice as much per capita as any other country; yet achieve much poorer results in terms of health and longevity.  The current system can be characterized as a federation of millions of entrepreneurs with no one in charge.  Even assuming that everyone is well intended, […]

System-Enabled Incompetence

I wrote early last year about Delta Air Lines transforming a great airline into a bus line.  I really did not anticipate how bad Delta’s performance could get. I was in Houston on Thursday waiting for a flight to Atlanta. When I checked in at the kiosk, Delta offered me the opportunity to stand by […]

A Tsunami of Talent

I am in Beijing and Shanghai for a few days.  The reason for my being in China is to chair the International Review Board at Tsinghua University where we are reviewing the Department of Industrial Engineering. The basic statistics are chilling.  In the U.S., 4% of undergraduates matriculate in engineering. Of those that graduate, 12% […]

On the Cutting Edge

Last week, I was a visiting faculty member as a Spine Symposium.  I gave three talks related to a systems approach to healthcare delivery.  The context of spine surgery was purely serendipitous, as the folks inviting me did not know in advance that I have spent several years doing my best to avoid spine surgery.  […]

Floods, Cyclones, Earthquakes and Avalanches

I have been in Australia and New Zealand for the past two weeks – I am in Sydney right now.  The first week was a workshop at Gold Coast in Australia.  This workshop was to have been held in Brisbane, but floods reached the second floor of the hotel where the workshop was to be […]

Invention and Innovation

Invention is the creation of a new device or process.  Examples include computers, software products, chemical processes, junk foods, and kitchen gadgets.  Innovation is the introduction of change via something new.  Cable television and video rental stores were innovations, as were overnight mail and communication via fax and the Internet.  Each of these innovations took […]

Investing in People

I am pleased to report that this week John Wiley released “The Economics of Human Systems Integration: Valuation of Investments in People’s Training and Education, Safety and Health, and Work Productivity.”  I edited this book with contributions from many economists, systems engineers, and behavioral and social scientists.  The overarching question that motivated this book was, […]

Collaborative Networks

I am at the IEEE Workshop on the Future of Information at the National Academy of Engineering in Washington, DC.  The purpose of the workshop is to consider how engineers and scientists will access and use information in 2020, including what types and sources of information they will seek and find available. Yesterday was the […]

Information and Incentives

In January, I discussed the notion of transforming organizational silos in academia to collaborative networks that can address large-scale research problems.  At the moment, I am sitting in a meeting at the University of Illinois that is, in part, focused on this possibility.  People are discussing the difficulties that they have encountered in pursuing this […]

Valuing the Future

I once asked an Assistant Secretary and Chief Financial Executive of a government agency whether he preferred to be in control of all the budget of his agency or to be in control of how the money was counted.  He responded, “If I can control how the money is counted, I don’t need to control […]

Unintended Consequences

Medicare limits reimbursement for healthcare procedures, often below the cost of delivery of these procedures.  Not surprisingly, healthcare providers figure out ways to compensate for these price controls.  They may, for example, bundle other, profitable services with those that they are forced to provide at a loss to get the overall profit margin to be […]

Transforming the Debate

The debate in Washington seems stuck in partisan positioning and sound bites.  We have lost track of the fundamental objectives that need to be pursued.  I think the overarching objective should be quite simple – we want a healthy, educated, and productive population that is competitive in the global marketplace. We do not really want […]

Four Scenarios for Academia

What will the academic world be like in 25 years – 2035?  Thinking 25 years into the future is quite difficult, as is evidenced by thinking back to 1985 and imagining our current iPhones, Kindles, and pervasive social technology such as Facebook. Nevertheless, it is interesting – and potentially useful – to consider future scenarios.  […]

Transforming Silos to Networks

I have been a faculty member at four universities – two in leadership positions and two in one-year visiting positions.  Nevertheless, academia is a bit of enigma to me, perhaps because of my thirteen-year “leave of absence” to found and lead two software companies.  In terms of content, in my case science and engineering, universities […]

Challenges in Healthcare Delivery

We are currently embroiled in two healthcare debates. One debate involves how the costs of making healthcare available to everyone should be apportioned among individuals, employers, and the government. The second debate concerns how to achieve reductions in the high costs of healthcare to provide the best value. Both debates have to be resolved effectively […]

Essential Challenges of Strategic Management

After working with well over 100 enterprises – large and small companies, government agencies, non-profits, and universities – it should not be surprising that I came to wonder about common challenges across all these types and sizes of enterprises.  Pursuing this idea, I identified seven challenges. Growth is the overarching challenge.  How can your enterprise […]