Affinity By Design

Looking for Disaster

2010-05-27T16:21:00.000-07:00

On April 20 an explosion on the Deepwater Horizon, an oil drilling platform leased by British Petroleum (BP), killed eleven people and led to the biggest man-made disaster seen in the Gulf of Mexico. In addition to the explosion on the drilling platform, the Deepwater Horizon experienced a catastrophic failure of the blowout prevention valve located almost a mile below the floating platform. BP initially indicated 5,000 barrels of crude oil was leaking into the Gulf of Mexico each day. Independent experts have estimated the leak to be closer to fifteen times as much as BP’s original figure.

The blowout prevention valve consists of two major components: a single valve mechanism, and multiple valve activation systems. (Note: I claim no knowledge of oil drilling equipment other than what is freely available through publically accessible news sources.) In the case of the Deepwater Horizon, all efforts to activate the valve mechanism failed. Despite multiple valve activation systems the valve itself represents a single point of failure.

A single point of failure is never a good idea but sometimes they cannot be avoided. In the Lococo household we have adopted this philosophy: Success is how you handle plan “B”. We are not afraid to go to plan B but try to stay very aware of when we don’t have one. In a business setting the importance of plan B is frequently a function of the costs associated with the failure of plan A. In the case of the blowout prevention valve used by the Deepwater Horizon, there was no plan B.

There are a number of factors which may have contributed to BP’s lack of a backup for the blowout prevention valve:

BP may not have been able to imagine a situation in which the valve could fail.
Given average daily profits in excess of $50M over the past 9 quarters and a liability limit of $75M, BP may have not seen a failure of the valve to be a material threat to the company.
The Interior Department and the Minerals Management Service had issued an environmental impact waiver during the planning of the Deepwater Horizon platform. BP may have actually believed the drilling operation posed minimal or no environmental risk.

There are many ways to characterize the assertion the drilling platform posed minimal or no risk to the environment but few of them are kind. Given the expanding scope of the disaster resulting from the April 20 explosion it seems unlikely BP’s liability will be limited to $75M. At the same time, it is hard to imagine BP will be held accountable for the full extent of the damages caused by the deepwater horizon disaster. Even if a dollar amount could be identified and paid by BP, the people and industries which rely on a healthy Gulf environment may not recover for many decades.

Lessons learned:

There are two issues which have implications far beyond BP and its Deepwater Horizon drilling platform: the fact the blowout prevention valve was a single point of failure, and the fact the drilling operation was considered to pose minimal or no environmental risk.

We regularly encounter situations where there is a single point of failure: a critical structure or function for which there is no work around. For most people, electrical power is an example of a single point of failure. When we lose electrical service we simply find something else to do until the power comes back on. We rarely experience power outages which last very long and often find the disruption to our day a chance to pause and get a different perspective on our daily routines. In those environments where a power outage could create a dangerous situation (hospitals, air traffic control, etc.) emergency generators are often used as a backup system, eliminating the single point of failure.

The key to the single point of failure situation is the question “What if?” If the answer to the question “What if?” is “There may be an annoying disruption to our day.” a backup system may not be justified. If the answer to that question involves injury, death or irreparable damage; elimination of the single point of failure becomes a preferable alternative. It is likely most reasonable people would have determined the unfolding disaster in the Gulf of Mexico as a situation where a single point of failure was not an option.

The second relevant issue in the Deepwater Horizon disaster is the environmental waiver issued by the Interior Department and the Minerals Management Service. The waiver was granted on the assumption the Deepwater Horizon drilling operation posed minimal or no environmental risk. It is hard to imagine a definition of the word “environment” where the failure of the blowout prevention valve could be seen as having minimal or no environmental risk. The damage done by the Deepwater Horizon disaster is likely to impact all aspects of life in the region for decades to come. If the various constituencies that will be impacted by this disaster in the coming decades had knowledge of the potential impact on the natural, social and economic environment of the region it is likely the blowout prevention valve would not have been relied upon as a single point of failure.

Applying the lessons:

The disaster in the Gulf of Mexico provides us with an opportunity to look at threats we face in our personal and organizational lives. In assessing these threats it is important to look at three broad areas:

Tolerance for the risk that goes with a single point of failure.
Sources of threats to our organizational/personal survival.
Responses to threats.

The following questions should be reviewed by every organization on a periodic basis:

How long can our organization survive if a catastrophic failure (within or outside of our organization) occurs?

This question has operational, economic and social implications to it. If an organization cannot provide its primary services to its customer base it has three options: out-source services to another organization, shut down, or offer a different set of services. If the revenues an organization receives are interrupted significantly there will likely come a time when the organization will have to close its doors. If an organizations operations are disrupted long enough it will become irrelevant in the market place.

Where do single points of failure occur in our organizations?

Where do single points of failure situations occur, which have a significant impact on our organization, but are outside the organization’s immediate control?

These questions require us to look at the situations that could cause a significant disruption to the operation of our organization. The challenge is to look at both internal and external threats to the organization. Internal threats can be addressed through sound management practices. External threats can only be addressed through sound relationships with people and institutions outside the organization’s control.

Most threats have a work around, so they don’t qualify as a single point of failure. Other threats have obvious work arounds but those work arounds cannot be implemented on a timely basis. In these situations it is valuable to explore what is required to overcome the threat before the organization is significantly impacted by the threat. Still other threats have a work around but, as in the Deepwater Horizon disaster, significant irreparable damage will have been done before the problem can be addressed. In these situations the stakes are much higher and a specific focus on preventing a damaging situation must be emphasized. In all situations efforts to avoid disastrous results should be consistent with the potential impact of the threat.

If a catastrophic failure occurred outside of your organization, who else would be significantly impacted in a similar way? When did you talk to them last?

How does your organization, community, industry, etc. connect with those organizations which would have primary responsibility in the case of a catastrophic failure? When was the last time this cohort was face-to-face?

These questions help identify allies, adversaries, and advocates. In the Gulf region; environmental groups, the fishing industry and tourism industries may have little in common and may even find themselves on opposite sides on some issues. All three find their best hopes for the region currently in jeopardy as a result of the BP disaster. Both the Interior Department and the Minerals Management Service could be expected to act as arbiters of the long term goals of all parties involved but have miserably failed this expectation. The Deepwater Horizon disaster has served as a reminder of the interrelationships between the many interests in the gulf region and how easily the catastrophic failure of a single piece of equipment can jeopardize the future of the region.

Sources: UPI, New York Times, British Petroleum, National Public Radio

If you would like to know more about Affinity By Design, LLC go to the web page at http://www.affinitybydesign.com/

Regulation or just good accounting

2010-05-01T15:17:00.000-07:00

As we learn more about the disaster area forming in the Gulf of Mexico it becomes apparent little thought has been given to the potential environmental and economic impact of an equipment failure of the magnitude of the one which occurred last week.

Thirty years ago, while still in college, I had a consulting practice called Inventory Control Services. One of the things I used to do for my clients is help them understand how much inventory to carry based on a variety of factors. The economic order quantity (EOQ) took into account such things as the time it took to replenish inventory, the cost of holding inventory, and the cost of not having inventory available to the company's customers.

As more and more of the Gulf region is impacted by the uncontrolled flow of oil the environmental impact is unclear but the potential economic impact is mounting. We can only speculate on why these calculations had not been made prior to the equipment failure. If they had, precautions may have been put in place which would have balanced the potential economic and environmental impact with the cost of appropriate safeguards.

A major obstacle to such a comprehensive calculation is it would need to take into account all of the various constituencies involved in the Gulf region. Once the calculation was made the oil drilling operation would need to be required to act in a way that protected the interests of all who would be harmed by a catastrophic equipment failure. Such a requirement could easily be seen as "regulation". it could also be seen as prudent accounting practice.

_____________________

http://www.AffinityByDesign.com/

Getting in Touch

2010-03-25T13:13:00.000-07:00

I have a practice of taking my dog for a walk every morning. It is an opportunity for Zoe and I to get some exercise and gain a perspective on the day. Zoe finds interesting things to sniff as we walk. I prefer to read.

On the morning of Sunday, February 7^th I was looking forward to our walk and to continue reading “The Necessary Revolution” by Peter Senge, et.al. Unfortunately I had forgotten to recharge the battery in my book reader and didn’t have enough charge to read while on the walk. I thought of taking my radio and listening to “Speaking of Faith” on NPR but wasn’t really interested in the topic for the program. I realized I had a need for audio stimulation while I walked. General rule: a need for diversion is an active avoidance of something. I left the house with pockets empty of electronic devices.

I had only walked a little way before I heard a woodpecker in a tree to the southeast of our house. I had no idea woodpeckers are in my neighborhood the first week of February. As I walked the neighborhood I was able to get a sense of where the bird was. There was only one woodpecker in the neighborhood and it seemed to be content to stay in one place. I have since heard (what I assume is) the same woodpecker on a regular basis.

The woodpecker acted as a reminder to be present to the sounds and smells of the neighborhood. I became very aware of how little I know of the patterns of migratory birds. I welcome them as a sign of winter’s passing and the coming of spring but I don’t know which will stay with us for the summer and which are on their way to the north. I’d guess woodpeckers are territorial but I’m not sure. I also noted a conspicuous absence of smells. The winter still had a firm hold on the ground. The smells of spring were still a ways off on February 7^th.

By the time Zoe and I got back to the house I had resolved to make our Sunday walk a time to give the electronics a rest. I found the direct connection to my surroundings refreshing. It was also good to let my mind wander freely rather than to focus on a pre-determined topic. I am eager to find what the spring will bring to the neighborhood and what will come of taking time to reflect without a specific focus.

Lessons learned:

It was by chance I found myself on a walk without an agenda. I had forgotten how much I enjoy the opportunity to be outdoors in the early hours of the day. While I am not oblivious to my surroundings when I read while walking, I clearly place a secondary importance on the feedback I receive from my surroundings when my primary focus is on reading a book.

I have no doubt I would have noticed the sound of a woodpecker regardless of the book I might read while walking. Whether I would have noted my surprise at the presence of a woodpecker in February is questionable. I am sure I would not have taken the time to reflect on what I miss by dividing my attention.

This simple experience served as a reminder of how much I miss as a result of taking my surroundings for granted and focusing my attention on more immediate priorities. The take-away from my walk of February 7^th is recognition of the value of taking a step back from normal activities for the sole purpose of unstructured reflection.

Applying the lessons:

As Zoe and I walked on Sunday, February 7^th I realized I had placed such a high priority on taking advantage of a good opportunity to enrich my life through reading I had forgotten about how enriching it can be to be present to my surroundings. Ironically, I often use my morning reading time for learning how to foster creative thinking in myself and others.

The most important thing is to make the time for unstructured thinking. In our personal live this is fairly simple to do. In our organizational lives we need to set aside unstructured time for brainstorming. This could be done as a part of a general meeting or in a periodic gathering dedicated to freethinking. The key is to allow enough time for ideas to come to the table. Fifteen minutes of brainstorming time at the end of a long meeting is unlikely to provide useful insights.

Here are a few ideas to take advantage of time set aside for letting ideas come to you and the teams you participate in:

- Don’t expect a break-through idea to jump out and grab you. The best ideas often arrive unexpectedly.

- Use thought joggers to generate ideas. “Finish the sentence…” is a good tool; the most innovative thing I’ve seen lately is… “It would be really great to”… “I’ve always wondered how”… etc.

- Avoid judgment of the ideas generated in an open-thinking session. Focus on possibilities, not limitations.

- Allow for unrelated and incomplete ideas. Observations of fascinating things don’t need to be directly related to the organization.

- Make note of good ideas and allow time to develop the ideas that have promise.

_____________________

<http://www.AffinityByDesign.com/>

Connecting the Dots

2010-01-22T19:45:00.001-08:00

On December 25, 2009, a Nigerian man traveling to Detroit from Amsterdam tried to ignite an explosive device which would have resulted in the destruction of a Northwest Airlines flight and the deaths of 278 passengers.

After meeting with his National Security team, the President said, “It was a failure to integrate and understand the intelligence that we already had.” The President also said that the government had collected sufficient information to uncover the terror plot in advance but that intelligence officials had, “failed to connect those dots.”

The phrase “connecting the dots” has been often repeated to describe the circumstances which allowed for this situation to present itself. This incident has captured our attention because it is disturbing at a number of levels. The fact a person could get on an airplane with an explosive device reminds us all of how vulnerable we are. The fact this person was not stopped, despite the billions of dollars invested in intelligence services, is perplexing. The fact this person was known to some within the intelligence community but that knowledge did not result in action, is inexcusable.

In our organizational and community life, we often find situations which reflect a “failure to connect the dots.” While it is rare these situations present themselves as dramatically as a terrorist threat, we often find situations where the answer we seek is within our reach but seemingly unavailable to us.

Lessons Learned:

The incident of December 25^th allows us to witness an examination of a very large system and how it failed to achieve its most basic goal. Describing the problem as a failure to connect the dots leads us to some basic questions:

Which are the dots?
What are the connections?
What does it mean to connect the dots?

The phrase “connect the dots” suggests a model including resources, data and relationships. The “dots” can be seen as the agencies and resources which collect, catalogue and interpret data. The “connections” are the pieces of data/information flowing to and from the various agencies and resources (dots). Under this model, data flows to the dots for interpretation and collection and flows from the dots as refined information to be used elsewhere in the system.

In the system described above, information flows can be either directed (pushed) out from one agency/resource to another or can be provided in response to a request for information (pull). Regardless of whether data is pushed to or pulled from another agency/resource, it only becomes useful to the receiving organization after it is processed by the new owner of the data.

It seems an inevitable part of organizational life to find we continually have either too much or too little information to work with. The challenge is to find just the right mix of routinely provided information and information available on demand.

Applying the Lessons:

The following steps will help sort out the “connecting the dots” challenge:

Identify the dots: Make a list of the organizations and resources which provide you with information.
Identify the connections: What information is provided by each resource? Note whether the information provided is generated by the organization or passed along from another source.
Note gaps and overloads: As you make an inventory of the information you receive you are likely to find there are things you need but don’t receive. You may also find data you receive but have no use for.
Depending on what you find you will likely want to adjust the information flows connecting you to other organizations and resources.

The steps above are an informal process for reviewing the information flowing into an organization. There are more formal processes for reviewing how the dots connect and organizations should perform a formal data flow review on a regular basis. Another approach to the problem of connecting the dots is to forget about the dots and focus on the people within the dots.

_____________________

<http://www.AffinityByDesign.com/>

2010-01-22T15:40:00.000-08:00

_____________________

<http://www.AffinityByDesign.com/>

I gave blood and fell off the earth.

2009-09-18T11:42:00.001-07:00

my wife got me into the habit of donating blood. I have donated more than seventy pints of blood over the past fifteen years. I've taken advantage of the customer service department at the blood center of Wisconsin calling me every eight weeks to set up an appointment. this is a great service and it ensures I give blood frequently.

I learned recently of a large gap in the blood center's customer service process. I was going to be at one of my customers offices during a blood drive so I canceled my scheduled appointment and signed up to be included in the organization's blood drive. the plan worked well for me: I streamlined my schedule and did a good deed.

an unintended consequence of my change in plans was I fell off the blood centers reminder rotation. I no longer get a call every eight weeks to make an appointment. I keep forgetting to give them a call. I'm sure I'll get around to it a some point but it is just not my highest priority.

note: after writing this post I called the blood center and made an appointment to donate. I mentioned I no longer get reminder calls.

_____________________

<http://www.AffinityByDesign.com/>

Abandon versus Adapt

2009-09-04T06:59:00.001-07:00

I just got done listening to a story about how newspapers need to adapt to a new media environment in the 21st century. This has been an ongoing story for some time now and it really does seem like newspapers are starting to come to grips with the challenge they face. I've also been listening to stories this week about how the United States might adapt to high speed rail systems. Europe and Japan provide good examples of how high-speed rail systems can be integrated into an overall transportation plan. These systems have not been easy to integrate nor have they been inexpensive.

A large part of the challenge we face in the United States is integrating rail systems into an overall transportation plan. We generally look at passenger rail as being a part of our past. Rather than a part of our present. European rail systems are integrated into an overall transportation plan which includes local mass transit and the ability to walk directly from train stations to workplaces. With few exceptions U.s. rail stations leave people without access to mass transit or sidewalks. People are able to get from city to city, but find themselves stranded without the ability to get to their final destination. The challenge we face has been referred to as "The last mile". The contrast between US and European rail systems is also the contrast between abandonment versus adaptation. European rail systems have become an integrated part of transportation systems for moving people from where they are to where they want to go. In the United States, we largely have looked at passenger rail as something that we abandoned many years ago in favor of automobiles.

We have suddenly found ourselves taking another look at rail systems and looking at how they might be part of an integrated transportation system. We have become aware that the economics and environmental impact of rail transportation are much better than automobile transportation.

the challenge is to quickly move from the view railways were an old method that was obsolete almost 100 years ago to a perspective that rail systems are a part of a new integrated system that includes many pieces working together

The irony of this challenge is the fact that the United States has always been known as an innovator, a tech knowledge he leader and as a creative nation. The biggest challenges in integrating high-speed rail into an overall transportation plan are challenges of innovation leadership and creativity. The sad reality is we've had the luxury for many decades to simply abandon old technologies rather than adapt them into part of a new more effective or efficient system.

And yet, I remain confident we can meet this challenge.

<http://www.AffinityByDesign.com/>

A Night at the Big top

2009-08-21T06:57:00.001-07:00

I recently attended a show at the Lake Superior Big Top Chautauqua (sha-ta-qwa). I’ve listened to the “Tent Show Radio” broadcasts for years and was happy to win a pair of tickets to a show. From the names “Big Top Chautauqua” and “Tent Show Radio” I knew we would be watching a show under a tent but that was the limit of our expectations. What we found was an interesting mix of simplicity and sophistication.

The sign for Big Top Chautauqua (BTC) directed us west off of Highway 13. After a short ride we found ourselves in a queue of cars being directed by a person along the side of the road. We told the person we needed to pick up tickets at “Will Call”. We were directed into the left lane and expected we would end up at a building with a ticket window. A ways further we were stopped by another person along the way. When I asked for directions to Will Call the woman responded “That’s me.”. The ticket window turned out to be a person with a clipboard and a stack of envelopes. We were then directed to a parking spot by a person in an orange vest.

With the exception of the restrooms, everything we came in contact with at BTC was under tents. The people we encountered were the kind of warm and friendly types who evoke images of people who had, in years gone by, uttered the words “You know what would be cool…” while sitting around a campfire. While this may be true, BTC is a much more sophisticated operation than the simple surroundings and friendly smiles would suggest.

Taking a closer look at the BTC grounds shows clearly defined business processes and practices. There are separate tens for food, merchandise and raffle sales. The complimentary tickets we received were electronically generated and showed a price of $0.00. BTC operates a shuttle service to bring guests in from nearby communities. Additionally, BTC produces a syndicated radio program, does educational outreach programs and has a touring company.

In 2000 BTC encountered a major problem: an electrical short caused their tent to burn down in the middle of the night. Many organizations never recover from such a catastrophic event. Fortunately BTC had seen how disastrous it would be to lose their tent. They only missed one performance before the backup tent was in place.

For mor information about BTC go to http://bigtop.org/

Lessons learned:

At first glance big top Chautauqua appears to be an unorganized collection of sophisticated and unsophisticated processes, practices and technologies. A business analyst looking for some consulting dollars might recommend an intense (and costly) process to “standardize the organization’s business processes and raise them up to include the best technologies available”.

A closer look at BTC suggests things are as sophisticated as they need to be, but not more. Aside from the technology of sound systems, there is little BTC could do to dramatically improve on the audience experience. A multi-million dollar investment in buildings for ticket sales, food service and merchandise would add little to the overall audience experience.

On the other hand, BTC has an organizational infrastructure reflecting thoughtful leadership with a sophisticated business sense. While the big blue tent is the iconic image of BTC they have developed multiple income streams and distribution channels. The decision to have a backup tent was preceded by some version of the question, “What would be the impact of losing our tent?” The fact BTC tracks paid and complimentary tickets indicates they have the ability to analyze revenues and expenses by audience, seats and paid admissions.

Applying the lessons:

The Lake Superior Big Top Chautauqua employs a mix of business practices and technologies ranging from simple to sophisticated. This mix provides a reminder “best practice” and “best technology” are subjective terms. Here are a few simple questions to assist you in looking at how sophisticated your organizational environment needs to be:

Start by clearly describing what is to be accomplished by the business process being examined. At BTC all they were trying to do is put “on hold” tickets in the hands of people coming down the driveway.
If the process is not working as expected, clearly describe the problem. Avoid describing a solution to an undefined problem.
Identify the impact the problem has on the organization. Does the problem consume staff time when they could be doing something more productive? Does it cause bottlenecks in the flow of your organization? Does it cause customers to go somewhere else? Every problem can be associated with a cost to the organization. The cost of the problem should exceed the budget for its solution.
Identify the absolute minimum change required to solve the problem described above. Can this solution apply in all situations? It’s best to avoid elaborate exception processing: if a solution can’t be integrated into the standard process it’s too complicated.

The book Think and Grow Rich tells of a sales manager who told his salesmen (Yes, Napoli and Hill was smart but not enlightened.) to put twenty-five beans in their left pocket at the start of the day. When they made a sales contact they were to move one bean to the right pocket. Their sales day was over when they had emptied their left pocket. Some might say a Smartphone connected to a centralized database would be a better tracking process but it’s unlikely the salesperson would have time to make twenty-five contacts in a day if they were constantly fiddling with their phone.

<http://www.AffinityByDesign.com/>

<http://www.DanLococo.com/>

Household Observations

2009-03-27T06:42:00.001-07:00

No more than one person can know how to refill a liquid soap dispenser. If a second person should find out how to fill the soap dispenser, the first person will lose the knowledge immediately.
Plastic wrap creates a force field around things it covers. Even if the wrap does not form a seal, it is expected the food will somehow stay fresh.
A pan of brownies, on a cooling rack, will remain hot indefinitely. Therefore, it must remain on the cooling rack until all of the brownies are consumed.
A recycling bin will grow taller as it is filled. The overflowing appearance of the bin is only an illusion.
A bottle of juice will regenerate itself as long as there is a little left in it.
Cream cheese will jump into your hand when you open the refrigerator. If not a new package should be opened.
The dog will, eventually, learn how to refill its own water bowl.

The above items are trivial moments of household life. The regular reoccurrence of these situations can create a low-level friction but they remain trivial. In an organizational setting these situations parallel business processes with significant impact on the success of the organization. An organization where knowledge of routine procedures is not shared, where supplies are allowed to spoil or run out, or where there is confusion over who serves the customer is likely to suffer critical failures at regular intervals.

Lessons Learned:

The list above is a set of observations and assumptions. In fact, it is hard to separate the observations from the assumptions. The reason for this is described in a tool called the “Ladder of Inference”. The following steps summarize the tool:

We observe things
Select what to pay attention to
Make meanings and assumptions
Draw conclusions
Adopt beliefs
Take actions

What is interesting about the Ladder of Inference is the fact we are often unaware of climbing the steps between initial observation, conclusions and actions.

I don’t really believe anyone in my house thinks the dog will learn to fill the water bowl. I’m just aware the bowl seems to be empty when I walk by it. I have no idea how often the bowl gets filled when I’m not around or who fills it.

For more information on the Ladder of Inference go to: <http://www.solonline.org/pra//tool/ladder.html>

Applying the lessons:

The examples used in this article are intentionally light hearted but they parallel important situations faced in most organizational environments. In an ideal setting we would gather at regular intervals and share our observations, perceptions, values and beliefs. Unfortunately organizational life is often too busy to take time out for such reflection. As an alternative it’s pretty easy to ask a few questions and then compare answers among peers. Here are a few simple questions to get started:

Who are the people involved in the process in front of us?
What responsibilities do I have in this situation?
What responsibilities do I expect others have? Who are these “others”?
What one thing, that cannot be changed, would make a significant improvement if it were different?

The challenge is to reach agreement on the basic who, what, when, where and how. Once these are established it is fairly easy to see where gaps exist in the process. It also becomes fairly easy to see how the process can be improved, often without a great deal of additional resources.

http://www.affinitybydesign.com/

Household Observations

2009-03-27T06:38:00.001-07:00

No more than one person can know how to refill a liquid soap dispenser. If a second person should find out how to fill the soap dispenser, the first person will lose the knowledge immediately.
Plastic wrap creates a force field around things it covers. Even if the wrap does not form a seal, it is expected the food will somehow stay fresh.
A pan of brownies, on a cooling rack, will remain hot indefinitely. Therefore, it must remain on the cooling rack until all of the brownies are consumed.
A recycling bin will grow taller as it is filled. The overflowing appearance of the bin is only an illusion.
A bottle of juice will regenerate itself as long as there is a little left in it.
Cream cheese will jump into your hand when you open the refrigerator. If not a new package should be opened.
The dog will, eventually, learn how to refill its own water bowl.

Lessons Learned:

We observe things
Select what to pay attention to
Make meanings and assumptions
Draw conclusions
Adopt beliefs
Take actions

What is interesting about the Ladder of Inference is the fact we are often unaware of climbing the steps between initial observation, conclusions and actions.

For more information on the Ladder of Inference go to: <http://www.solonline.org/pra//tool/ladder.html>

Applying the lessons:

Who are the people involved in the process in front of us?
What responsibilities do I have in this situation?
What responsibilities do I expect others have? Who are these “others”?
What one thing, that cannot be changed, would make a significant improvement if it were different?

http://www.affinitybydesign.com/

Growing More Sophisticated

2009-02-21T04:23:00.001-08:00

We made our usual Sunday journey to church last week.

As the service started I was surprised to hear the choir had added a few new instruments to supplement the keyboard accompanist. I had thought the only time we’d hear a drum set with our liturgical music was when the contemporary music group (Jamin’ for Jesus) made their monthly appearance.

Both my daughters have been involved with Jamin’ so I have paid attention to how they have grown and become a part of our liturgical gatherings. They were kind of rough around the edges when they started and the congregation was more than a bit skeptical of rock’n roll music being included in the serious business of worship. The group got better and the congregation grew to accept Jamin’ as a part of who we are.

As I listened to the drums and maracas supplementing the sound of the choir I realized the introduction of a contemporary music group to our worship services has both added a new dimension to our liturgical music and broadened the horizons of our long-standing musical program. I find comfort in seeing this outward sign of growth in our church. It gives me confidence there are subtle changes taking place in other areas I may not be aware of.

<http://www.AffinityByDesign.com/>

Grocery store lines

2008-12-28T19:55:00.001-08:00

I found two occasions in the past 48 hours to be standing in line with a full grocery cart. On Friday I was in our local Pick’n Save where we spent about $90. On Saturday we were in the nearest Costco where we spent about $125. The dramatically different experiences of these lines got me wondering about how each store looks at the check-out process.

Pick’n Save has baggers but they seem to appear randomly and often seem to disappear just as quickly. We found our groceries being pushed down one of two chutes to a bagging area. There were no baggers. By the time we finished bagging our groceries both bagging areas were occupied and the checker was trying to force the next customers groceries on top of ours. This was clearly a log jam and a frustrating experience for all parties involved.

At Costco we found the check-outline was operated by a three person team that reminded me of a NASCAR pit crew. The first person took the groceries out of the cart and lined them up on the conveyor belt. The second person scanned each item and the third put the scanned items into another cart. The Costco check-out process took a fraction of the time of the Pick’n Save process.

Pick’n Save has lower expenses due to lower staffing levels. Costco has higher staffing costs but also has higher throughput capaticy at the cash registers. What is unclear is which has the lower cost per dollar of sales.

As a consumerI tend to be drawn toward pleasant experiences and avoid frustrating experiences. I had a far better experience at Costco. Consequently I would prefer to shop at Costco over Pick’n Save. In the short term Pick’n Save may b more profitable but as more people have a better experience at other stores those profits will quickly fall away.

Web: www.AffinityByDesign.com

The Mall, the traffic and the money

2008-12-23T05:12:00.001-08:00

My wife picked up our daughter, Rachel, at the mall on her way home from work last night. The plan for the evening was supper and going out with my other daughter to do some last minute shopping. I got a call from Rachel at about 5:15 to let me know they were stuck in a traffic jam in the mall parking lot. It turned out it took them almost an hour just to get out of the lot.

In talking with my wife I found they had people directing traffic but bottlenecks appeared where there was no directed traffic flow. The irony is the mall has invested in additional parking space over the past few years: apparently on the assumption more parking capacity equates to more customers equals more revenue. It doesn’t appear enough thought went into traffic flows to avoid major jams at peak times.

The long term solution is to study the traffic flows and redesign the lot to ensure customers can come and go with the least delay. The intermediate solution is to increase the number of persons directing traffic to limit the dynamic creation of bottlenecks. My wife provided the immediate solution: do not go to the mall. We took her advice and spent our money elsewhere.

Web: www.AffinityByDesign.com

Affinity News July, 2008

2008-07-03T08:23:00.000-07:00

Volume 5, Issue 3

July, 2008

Dan Lococo
Affinity News

In this issue:
* Greetings
* Mission, methods & tools
* Feature: Opportunity Cost
* Speakers Corner
* For more information
* Why you received this newsletter

Greetings:

Greetings to all on this Eve of the United States’ 232nd birthday. I’m regularly impressed with the system of government we have in the U.S. The three branch (Legislative, Judicial, and executive) model has proven quite durable over time. The framers of our constitution were some pretty smart individuals. And you’ve got to admit: creating an opportunity to celebrate with picnics and fireworks at this time of year was a stroke of genius.

The feature story in this issue focuses on the business started by a woman from Sierra Leone, Africa. I thoroughly enjoyed the opportunity to learn, and relearn, some valuable lessons about creating value in the marketplace. The story is an example of the power of creativity and determination. While Yainkain wasn’t born in the United States, she provides a great illustration of what we used to refer to as “the American dream”.

As always, let me know if I can help,

Dan Lococo
414.333.5846

Mission, Methods & Tools:

The mission of Affinity By Design, LLC is to help organizations meet their goals by overcoming obstacles. The method for accomplishing this mission is the intentional bringing together of a community of people to pursue a common interest based upon mutual trust and understanding. The primary tools employed by Affinity By Design, LLC are founded in the disciplines of group facilitation, Systems Theory and project management.

Feature: Opportunity Costs

I’ve been working with an organization to help develop entrepreneurship among African women immigrants and refugees. I recently had a chance to meet Yainkain Fofana and learn about her company, AMJ Services. Yainkain’s Company doesn’t do anything too glamorous, but they do things very well.

When Yainkain decided to start her business, she looked at what she could do without much investment in equipment, fixtures, and facilities. The result was a residential cleaning business. What started out as a small family business is now a residential and commercial cleaning operation and a concierge service.

As I listened to Yainkain, I realized she has a wonderful entrepreneurial spirit. She doesn’t charge by the hour. She charges by the value she delivers to her clients. In fact, very little of what AMJ Services delivers has anything to do with cleaning. Yainkain delivers excellent service, reliability, and trustworthiness. She does this so well her business continues to grow almost exclusively from word-of-mouth referrals.

Lessons Learned:

The first thing I learned from Yainkain is that the phrase “Aw, shucks” crosses cultural experience. While Yainkain presents herself as if she were plucked from Mayberry, Sierra Leone, she is clearly an astute business woman. It was a joy to listen and learn from her.

I’m always intrigued by the role culture plays in our perspective on the world. Yainkain’s approach to business may be a result of her heritage. It’s hard to tell. Even if it is, I’d be a fool to make a generalization about others from Sierra Leone.

As I look at Yainkain’s approach to her business, I am curious as to how she evaluates the feasibility of her ideas. As a Project Manager I learned to look at the technical, operational, and economic feasibility of projects. Technical feasibility (Can it be done?) and economic feasibility (Is it cost effective?) are pretty straight-forward questions. Operational feasibility (Will the organizational culture accept a new way of doing things?) is often a more complex question.

Applying The Lessons:

Yainkain’s business philosophy was the biggest take-away from the meeting. After nine years in business, AMJ Services still focuses on delivering high value with little invested capital. The business has accumulated capital in the form of customer loyalty and trust. These assets are harder to come by than fixtures or specialized equipment. On the other hand, once loyalty and trust are accumulated, they go a long way.

By avoiding technology and large capital investment, Yainkain simplified the questions of technical and economic feasibility. While operational feasibility can be challenging there is little, tangible investment in meeting these challenges. Yainkain simply decided any technically and economically feasible idea would automatically be operationally feasible. Could things be that simple? Apparently, yes.

If we take operational feasibility as a given, the number of opportunities to deliver value without incurring high costs increases dramatically. Here are a few things to consider in examining opportunities:

* What delays (either staff waiting for a customer or customer waiting for staff) exist in the process of delivering services?

* What skill sets do we possess but are underutilized?
* What additional services could be provided at the same time as our current services are being delivered?
* What would cost nothing but cause the customer to place a higher value on the services they receive?

A few examples from AMJ Services include: flexibility in service times, discarding outdated products in the refrigerator, replenishing household supplies, arranging for maintenance/service work on behalf of the owner. Nothing too exciting, just things Yainkain’s customers find highly valuable.

Add your comments:

The story above has been published on the Affinity By Design blog. You can become a part of the story by going to: < http://affinitybd.blogspot.com/>. You’ll also find web-only content there.

Speakers Corner:

Dan Lococo regularly speaks to groups on a wide variety of topics. Here are a few of the presentations Dan has done for groups in the recent past.

* Vision to Action: On how to move from high-level goals to the small steps it takes to get the job done.
* Having Skin in the Game: A light hearted look at the difference between volunteering and volunteering to navigate for a blind driver in a race car.

* Living our Spirit: On the ways we give ourselves to the world.
* Learning from Plan B: On the gifts that come when things don’t go as expected. (Co-presented with Helen Lococo)

If your group or organization needs a speaker, let Dan know how he could help.

How Affinity By Design, LLC can help:

Is it time to do some analysis of what’s effective and what’s not? This would be a great time to look at how your organization can bring its best to the table. You might be surprised at what you’d find. You’ll also be surprised at how Affinity By Design, LLC can help.

Dan Lococo brings many years of experience in business process analysis, finance management, and group facilitation to Affinity By Design, LLC.

There are a number of ways your organization can take advantage of these skills and experience as it becomes more effective in the delivery of its mission.

* Group presentations: As an experienced public speaker, Dan Lococo can address your organization or professional association.

* Structured brainstorming: A facilitated brainstorming session can help your organization reach a consensus on how to measure what is most important.

* Model building: A business model can quickly and effectively communicate important information. The integration of analysis tools and graphics allows for the communication of sophisticated information with a minimum of data collection.

* General consulting: Affinity By Design, LLC can provide a customized combination of facilitation, analysis and consultation to meet the special needs of your organization. General consulting engagements are based upon a mutually agreed upon project charter.

Why You Received This Message:

You have received this newsletter because I have had either direct, or indirect, contact with you regarding the work of Affinity By Design, LLC. If you do not want to receive this newsletter, please let me know via e-mail. Include the words “Take me off your list” either in the subject or body of the message.

----------------------------------------
Dan Lococo
Facilitation, planning, analysis

Affinity By design, LLC
414.333.5846
Web: www.AffinityByDesign.com
Blog: http://affinitybd.blogspot.com/
http://www.linkedin.com/in/DanLococo

Bringing people together to get things done.

April Affinity News

2008-05-01T20:18:00.000-07:00

Affinity News
Volume 5, Issue 2
April, 2008

In this issue:
* Greetings
* Mission, methods & tools
* Feature: Saying the Creed
* Speakers Corner
* For more information
* Why you received this newsletter

Greetings:

I had a great intro written for this newsletter, but had to discard it. It had to do with the warm air blowing in the window. But that was last week and this is Wisconsin! The weather changes by the day. In fact, warm or cold, the wonders of Spring are something to cherish. It’s good to walk in the early morning hours. The sounds of migratory birds, as they spend a brief moment with us, are always a gift.

The feature story in this issue speaks of the power of keeping organizational mission out in the open. It also speaks to the problem of an unquestioned mission statement. The story speaks of the religious tradition I participate in, but does not ask you to participate. It also makes some observations you may not, necessarily, share.

I hope this Spring is a time of renewal for you and the activities you are a part of. I hope you have a chance to share the gifts you’ve been given and that you partake of the gifts others bestow upon you.

As always, let me know if I can help,

Dan Lococo

Mission, Methods & Tools:

Feature: Saying the Creed

As a kid, I remember being dragged to church by my father. I recall one morning, as we were leaving church, my father exclaiming: “Don’t you feel better now you’ve gone to church?” “No”, I thought, “I feel like I ruined a good morning of sleep.”

Like many kids, I’ve grown up to be much like my father. I go to church just about every Sunday. I participate in a different religious denomination than I was raised in, but find little difference in the way weekly services are conducted.

At one part of the weekly service, we all stand and recite the creed. It’s not exactly the creed I grew up with, but pretty close. What strikes me is how well the creed summarizes the religious tradition. The fact this same creed is recited in unison, all over the world, is a powerful part of my religious experience.

Many of the details of the religious tradition I am a part of are publicly shared on a regular basis. There are a wide variety of cycles and ceremonies illuminating the faith tradition, and the institutions supporting it. While faith itself involves the acceptance of mysteries, there are few mysteries associated with the tradition and institution.

Lessons Learned:

There is great power in having a shared creed, a shared mission, a shared culture. The term “cultural norms” refers to a consensus on what is normal within a group. This consensus provides for transparency when it is documented and readily available for review.

On the other hand, when a creed is not dynamic, it can become irrelevant. I recall buying a pair of Thom McCan shoes some years ago. Their corporate mission was posted by the cash register. I was so impressed with their commitment to quality and service I made a copy of the statement. About three months later, the sole separated from the top of one of the shoes. Much to my surprise, the staff at the Thom McCan store seemed confused at the suggestion they would stand behind the quality of their shoes.

When I stand up in church and recite the creed, I find it a powerful statement of our shared beliefs. At the same time, I can’t help but wonder how the very same institution could have protected all those pedophiles. Similarly, there has been a marked increase in the recitation of “The Pledge of Allegiance” since the terrorist attacks of 9/11/2001. There is a disturbing contradiction between the illegal wiretaps, torture, prolonged detention without charge and our pledge of “freedom and justice for all”.

Applying The Lessons:

I’ve heard Disney tells its employees (Cast Members) it takes twenty-seven positive interactions to offset one negative experience. This observation is at the heart of the gap between the stated creed/mission/purpose of organizations and observable actions. The bigger the gap, the greater the resources required to compensate for contradictions.

There could be a number of reasons why the actions of an organization are in conflict with its stated purpose:

* The organization has outgrown its original purpose and needs to restate its mission.
* The organization has lost its way and needs to get back to its roots.
* The organization may have diversified in such a way that individual business units need to define there own statement of purposes.

* It may be time to simply drop outdated programs or business activities.

The key to closing the gap between the stated purpose of an organization and what it actually does is healthy communication. If everyone is free to ask “”How does this activity support our purpose?”, the organization is likely to self-adjust as time goes on. This is what Peter Senge refers to as a learning organization. If, on the other hand, an organization is hostile to questioning the gap, there are twenty-seven things that can be done to smooth over the situation. But who has the time and resources for that!

Add your comments:

The story above has been published on the Affinity By Design blog. You can become a part of the story by going to: < http://affinitybd.blogspot.com/>. You’ll also find web-only content there.

Speakers Corner:

Dan Lococo regularly speaks to groups on a wide variety of topics. Here are a few of the presentations Dan has done for groups in the recent past.

* Living our Spirit: On the ways we give ourselves to the world.
* Learning from Plan B: On the gifts that come when things don’t go as expected. (Co-presented with Helen Lococo)

If your group or organization needs a speaker, let Dan know how he could help.

How Affinity By Design, LLC can help:

Dan Lococo brings many years of experience in business process analysis, finance management, and group facilitation to Affinity By Design, LLC.

There are a number of ways your organization can take advantage of these skills and experience as it becomes more effective in the delivery of its mission.

* Group presentations: As an experienced public speaker, Dan Lococo can address your organization or professional association.

* Structured brainstorming: A facilitated brainstorming session can help your organization reach a consensus on how to measure what is most important.

----------------------------------------
Dan Lococo
Facilitation, planning, analysis

Affinity By design, LLC
414.333.5846
Web: <www.AffinityByDesign.com>

Bringing people together to get things done.

Affinity News for February, 2008

2008-02-22T11:37:00.001-08:00

Volume 5, Issue 1 February2008

In this issue:
* Greetings
* Mission, methods & tools
* Feature: Just a Cymbal?
* Speakers Corner
* For more information
* Why you received this newsletter

Greetings:

We all like to be nostalgic once in a while. Reminiscence is a good thing to do now and then. I think this winter has cured most of us from starting the story: remember when it used to start snowing in November and the streets never cleared until March?

I hope you are having a good start to 2008. This is the time we move from the darkest part of the year to a time of new beginnings. The featured story in this issue focuses on the little things that make a big difference. It was inspired by a great set of music I heard recently. If you’d like to know more about the musicians featured in the story go to:

<http://www.fred-and-ethel.com/index.htm>

As always, I hope things are well in your world and you are in a position to have a positive impact on those things you know are important.

Mission, Methods & Tools:

Feature: Just a Cymbal?

I recently had the opportunity to see Fred and Ethel perform their special blend of folk/rock music. Fred and Ethel is the pseudonym for Tom Janezic and Jude Kinnear. Their music reflects that spontaneous quality that only comes from great experience and meticulous attention to subtle detail.

I have always found a certain beauty in precision. The beauty of design is seen in such things as the Versailles Gardens, a Formula 1 race car, or the unique shape of a snow flake. Not surprisingly, I hold a special place for well crafted music. I am especially fascinated by people who can make great music with nothing more than the combination of voices and acoustic instruments.

As I listened to Fred and Ethel’s set I found it interesting to hear Kinnear’s use of a cymbal. The cymbal was not part of a drum kit, just a small cymbal on its own stand. Periodically Kinnear would hit the cymbal at just the right moment in a song. What struck me as most interesting was how it was determined a lightly tapped cymbal was needed at just that moment in that song. We now know why Janezic and Kinnear were the ones on stage and I was in the audience!

Lessons Learned:

If I were hauling equipment for Fred and Ethel, I’d probably argue the cymbal was unnecessary to the set of music I listened to. As a percentage of the notes played in the set, the cymbal was used only marginally. I’m sure a multi-dimensional evaluation by audience members would have rated the performance as “Excellent” either with or without the inclusion of the cymbal. It would seem the marginal effort to haul this piece of equipment far exceeds its marginal value. Yet the cymbal was included in the musical arrangements and hauled to and from the show. Once again, a reminder of why I was not on stage!

If I sat down with Janezic and Kinnear to talk about their music (Wouldn’t that be cool!) I suspect they would find fault with my reasoning. The performance measures I used are likely different than theirs. There is clearly a different sense of value added in play here.

The inherent tension between making music and equipment management are similar to the tension between organizational mission and efficiency of operations. The challenge (and opportunity) lies in resolving this tension.

Applying The Lessons:

It is important to regularly take a critical look at the balance between the art of delivering organizational mission and the effective use of organizational resources. We tend to think in terms of doing more with less these days. We shouldn’t forget the power to make big differences through the addition of small amounts of resources.

Unlike Fred & Ethel, an organization is orchestrated by many individuals with many points of view. Here are a few ideas on making the best use of the voices playing in your group:

* Ask everyone: The idea of “Management by Walking Around” got lots of press, but what about asking some of the others who walk around your organization? The mailroom person, receptionist, and maintenance people all have an opportunity to observe a good cross-section of the organization.

* Ask “Why” five times: Repeatedly asking “Why?” uncovers a deeper understanding of the motivation behind decisions. .Asking about why the cymbal is important will reveal a deeper understanding of music. On the other hand, you may remember the deeper understanding of why it is so important to cut the end off the ham: Great-grandma’s pan was too small to hold a full-sized ham!

* Ask: What one thing, that cannot be changed, would make a big impact if it were different? This question often reveals incorrect assumptions about the inflexibility of policies and procedures.

Add your comments:

The story above has been published on the Affinity By Design blog. You can become a part of the story by going to: < http://affinitybd.blogspot.com/>. You’ll also find web-only content there.

Speakers Corner:

Dan Lococo regularly speaks to groups on a wide variety of topics. Here are a few of the presentations Dan has done for groups in the recent past.

* Living our Spirit: On the ways we give ourselves to the world.
* Learning from Plan B: On the gifts that come when things don’t go as expected. (Co-presented with Helen Lococo)

If your group or organization needs a speaker, let Dan know how he could help.

How Affinity By Design, LLC can help:

Dan Lococo brings many years of experience in business process analysis, finance management, and group facilitation to Affinity By Design, LLC.

There are a number of ways your organization can take advantage of these skills and experience as it becomes more effective in the delivery of its mission.

* Group presentations: As an experienced public speaker, Dan Lococo can address your organization or professional association.

* Structured brainstorming: A facilitated brainstorming session can help your organization reach a consensus on how to measure what is most important.

The Coffee House opportunity

2008-01-01T09:42:00.001-08:00

My wife and I had the opportunity to attend the open stage at The Coffee House at 631 N. 19th Street here in Milwaukee last night. It was a great experience for all sorts of reasons. First and foremost was the opportunity to enjoy good music in a friendly environment.

The Coffee House is a forum for acoustic music and spoken word performers. It is also a place with a social conscience and is, largely, run by volunteers. The stage is filled by persons who run the gambit from musical hobbyists to paid professionals. Proceeds from the door support both operations and a wide variety of nonprofit organizations.

A key feature of The Coffee House is Living Activism night. Once a month The Coffee House acts as host to nonprofit organizations trying to reach out to a new audience. The proceeds' of these nights go directly to the organization providing the entertainment.

During one of the breaks in the evening, Sandy Weisto pointed out another very important feature of The Coffee House. As a small nonprofit, The Coffee House has many opportunities for volunteers to get involved. If I had aspirations to run a business involving live entertainment, The Coffee House would be a great place to get started! On the other hand, if I thought words and music are powerful ways to bring people and ideas together (and I do), The Coffee House would be a great place to get involved.

I'm a big booster of volunteerism as practice field. Besides being a great place to go hang out, The Coffee House is a great practice field. As Tom Chapin used to sing "Think of all the possibilities and make a wish."!

For more information on The Coffee House, go to:

<http://the-coffee-house.com/>

Security or just bureaucracy?

2007-11-30T11:51:00.001-08:00

I had a meeting yesterday in a secured facility. The meeting started with a
great distraction when we couldn't get the two women I was with into the
facility. The women are Permanent Residents of the U.S. but not U.S.
Citizens. The facility does most of its work for the Navy and requires all
who enter to prove their immigration status.

The person behind the front desk had no idea there was an immigration status
of "permanent U.S. resident". She was clueless how to deal with the
situation. Unfortunately no one who knew how to find the appropriate form
was available. The head of security was in the building but not answering
his phone. His assistant was at her desk but didn't know what to do.

After standing around for too long, we realized one of my cohorts didn't
have her ID with her. At that point I suggested we meet at the table in the
public area. We weren't going to get past the front desk under any,
available, circumstances. The lasting impression of the situation was of
clueless people with no awareness they had failed to prepare for an easily
anticipated situation.

Ironically, the evening news featured stories of the problems George Bush is
having getting additional funding for the occupation of Iraq. The news
included threats of civilian layoffs if funding isn't provided immediately.
Given I had just witnessed a situation where three full-time employees
couldn't handle finding a form, the threatened layoffs could go unnoticed.

Organizations that can step back and examine situations like this one are
often able to increase their effectiveness and reduce operational costs.
Maybe the staff is simply not trained. Maybe authority needs to be
distributed better. Maybe there is too much staff and not enough work.
Unfortunately, I suspect the opportunity for improvement got lost in the
shuffle.

An Accountant's View

2007-09-20T19:09:00.001-07:00

The Comparative Revenue and Expenditure Report W. Martin Morics, published
in August is a perspective on governmental finance not often seen. Morics
is the City of Milwaukee Comptroller. The report uses accounting data to
illustrate how Milwaukee's revenue streams compare to similar cities across
the country. The report also raises some questions regarding infrastructure
support.

Larry Sandler highlighted the report in an August 23 article published on JS
Online. Sandler focuses on the fact current rates of street/alley
maintenance don't come close to keeping pace with normal wear-and-tear.
According to Ssndler's article the average neighborhood street won't be
repaved or rebuilt for 163 years. Alleys will take an average of 272 years
to be serviced. The useful life of a street is approximately 45-60 years,
and alley lasts approximately 50-60 years.

The real value of the report is Morics's objective view. The report looks
at both revenues and expenses and compares them to other cities. The report
allows for a reality check against some of the political rhetoric we hear
surrounding government funding and expenditures. One example is found in
looking at per capita property taxes as a percent of total revenues.
Property taxes in Milwaukee are 10% higher than comparable cities, as a
percent of total revenues. Before jumping on a soap box it pays to look at
the total revenues and expense lines of the report. Milwaukee is lower in
per capita total revenues and expenses by 18.6% and 13.2% respectively.
Very interesting, but not conclusive evidence of anything.

Another interesting bit of information available from the per capita revenue
and expense report is the rate of change in total revenues and expenses.
Total revenues for the four years in the report have risen at an annualized
rate of 1.7%. Total expenditures for the same period have risen at an
annualized rate of 3.5%. Any time expenses are rising at a faster rate than
revenues, it's hard to push the argument revenues are too high.

<http://www.jsonline.com/story/index.aspx?id=651608>

Lessons learned

Accounting data is designed to tell its own story. Placing the label "too
high" or "too low" on a piece of financial data is always opinion unless
there is a contextual reference point. Revenues can be too high under
certain circumstances, but only when all expenses are paid and maintenance
is up-to-date. On the other hand, revenues are always too low when the
bills aren't getting paid.

Deferred expenses represent a growing debt owed by the organization. From
the report and article, City of Milwaukee street and alley maintenance is
falling behind at a rate of approximately $16 million per year. Since
deferred expenses often don't appear on financial statements, it is
important to make sure they are addressed by the organization.

Trends tell a story. All things being equal, we'd expect revenues and
expenses to move, generally, in the same direction. When they don't, it is
worthwhile to ask some questions. In the City of Milwaukee information we
see expenses rising faster than revenues. When we combine this trend with
the deferred street/alley maintenance, it is easy to anticipate a problem in
the future.

Applying the lessons
Learn how to read your organization's financial statements. Any accountant
worth their pay would rather you understand the financial documents they
provide. It never hurts to let the person providing a financial report know
of specific questions in writing. There are also many sources of
information available for self study. The following link provides a basic
guide.

<http://www.sec.gov/investor/pubs/begfinstmtguide.htm>

Look at how things have changed over time: Looking at the same financial
figures from the previous year or a series of periods creates all sorts of
opportunities for questions. This is especially important in assessing the
effectiveness of prior decisions. "Remember when we made the big change
that was going to save all that money? Well, what happened?"

Ask about things not on the financial statements: There are all sorts of
things that will impact the organization in the future, but may not be on
the financial statements today. "How long do we expect the boiler to last?
When the lease on the copiers runs out, what do we expect to spend on a new
contract? If our biggest client went somewhere else, what impact would it
have on revenues and expenses?"

U.S. influence in Iraq

2007-09-11T06:39:00.000-07:00

Last week the United States Government Accountability Office said Iraq's
government had failed to take the political and military steps required to
cut sectarian violence, and had met only three of the 18 benchmarks laid
down by Congress in May. I speculated the news this week would focus on
General David Petraeus's assessment progress is being made in Iraq. I was
right. I, cynically, determined the emphasis on the military progress was
the product of an intense spin campaign by the Bush administration. Upon
reflection, I think I'm wrong.

The premise of the troop surge in Iraq was to provide greater security while
the Iraqi leadership resolved the political issues fueling the Iraqi civil
war. This is an example of the disconnect between circle of interest and
sphere of influence. We are interested in changing the political climate in
Iraq. We really only have influence over the security situation. It is no
real surprise adding 30,000 military forces to an occupation force of
130,000 would have positive results. Regardless of your perspective on the
occupation, there is no question of the capability of the U.S. Military to
provide security.

The problem in Iraq is one of critical success factors an performance
measures. Success in Iraq is measured in terms of factors the U.S. has
little influence over. Most non-governmental organizations would have an
oversight board to bring focus to this dangerous disconnect. But then, most
organizations don't have the capacity to spend hundreds of billions of
dollars with the hope of changing situations they have little influence
over.

Yin, Yang and Leadership

2007-09-09T21:08:00.000-07:00

I was listening to the program "Speaking of Faith this morning and found
myself drawn in by how engaged Rabbi Sharon Brous is in her faith life. I
was reminded of the tendency women have toward a focus on relationships,
while men tend to focus on things.

Rabbi Brous demonstrates the importance of having a balance of both male and
female energy in organizational leaders. Most males, in a similar role,
would be more authoritative. While authority figures can be inspirational,
most of us aspire to be engaged figures. I found myself wondering what it
would be like to embrace my own faith with such passion.

Next weekend I'll be attending a Mass celebrated by one of only a few women
Catholic Priests in the world. If Alice Marie Iaquinta is anywhere near as
engaged in her faith as Rabbi Sharon Brous, she will enrich the Catholic
tradition by her example. If she takes the approach of an aloof authority
figure, she will widen the path for future change, but have little impact on
the tradition.

< http://speakingoffaith.publicradio.org/programs/daysofawe/index.shtml>

The Cost of Outsourcing

2007-09-05T09:22:00.000-07:00

In the wake of another recall by toy manufacturer Mattel, there are a variety of steps being discussed to ensure the safety of goods imported into the United States. The story is sensational because it evokes images of Janice and Jen's hopes for Dolls that will talk and will go for a walk being dashed this Christmas. Once we get over the sensational part of the story, what remains is pretty basic cost accounting.

The reasons for moving manufacturing to China have been well documented. Lower wages and a much less restrictive business environment have been among the major reasons for outsourcing. What we're learning from the toy recalls is part of the regulatory environment includes a quality assurance step, highly valued by Americans.

An article published in the Chicago Tribune, describes a number of options available for improving the quality of imported toys. Sins. Dick Durbin
(D-Ill.) and Amy Klobuchar (D-Minn.) have proposed the Consumer Products Safety Commission perform testing on toys imported from China. This would likely require the rehiring of some of the 500 staff eliminated over the past twenty years. The article also indicates some major toy sellers are conducting their own product safety reviews. Another option is to develop quality standards for imports and let the original manufacturer certify the quality of the imported products. All of these options will require costs to be incurred. In all cases, the additional costs will be paid by someone other than the product importer.

The significant lesson of the toy recall is the insight the situation provides regarding some of the costs we thought were eliminated through the outsourcing of manufacturing to China. We already have some information about the environmental problems and working conditions in China. What we don't know is how, or when, the cost of these situations will be added back to the manufacturing process. It seems likely we will find the windfall profits realized by U.S. companies are actually deferred costs to be paid as higher prices and taxes at a future date.

At the organizational level this situation acts as a reminder of the need to asses the real cost of out sourcing decisions. Letting someone else do the things not a part of the organizations core mission is an excellent value. Outsourcing to avoid issues of environmental responsibility or fair treatment of employees is ethically questionable (Not really, it's just wrong!). As Mattel will likely find, out sourcing the quality assurance of an organization's primary product is a tremendous gamble.

Can we afford not to fix our infrastructure?

2007-08-03T11:26:00.000-07:00

Like so many people, I've been moved by the collapse of the I-35 bridge in Minneapolis on Wednesday. As more becomes known about the tragedy, I can't help but think of a comment I heard New York's Mayor make after the recent steam pipe explosion in his city. . In both cases, their was immediate concern foul play may have been a factor. In both cases, this speculation was quickly dismissed. The reason for the I-35 tragedy and NY explosion are not the result of a terrorist act, but may well have the same result.

Both the I-35 bridge collapse and Ny steam pipe explosion were the result of structural failure. Potential problems with the I-35 bridge had been recognized as far back as 1990. In a report aired on National Public radio, Dan Charles reported structural problems with bridges are common and widespread. According to the American Society of Civil engineers it would require an investment of $9.4 billion per year for twenty years to fix the bridges categorized as "structurally deficient or functionally obsolete".

I was struck by Charles' depiction of the cost estimate as "staggering". Had Charles reported the cost as "less than 20% of the tax cuts enacted in the past six years" or "less than half of what we add to the National Debt annually" or "less than twice as much as it costs to occupy Iraq for a year" he might have described the cost to fix the problem as "insignificant".

There are many factors impacting the ability of American's to continue to enjoy the way of life we've grown accustom to over the last half century. Crumbling infrastructure is certainly one of those factors. Mayor Michael Bloomberg's comment, regarding the recent explosion, "There is no reason to believe whatsoever this is anything other than a failure in our infrastructure." Provided no real comfort. As long as we see infrastructure failure as just something that happens and maintenance costs as staggering, we have reason to fear. Some may even feel terrorized!

NPR Story:

Creating Ownership

2007-07-19T11:36:00.001-07:00

Part of my role as the Finance Manager at Wisconsin Independent Physicians Group (WIPG) included direction of the physician credentialing process. On my first day of work at WIPG I found the credentialing process was a mess. There were stacks of files awaiting my review and more stacks of partially completed files. I also learned that the Credential Review Committee of the Board of Directors was very dissatisfied with the quality of information being presented for their approval.

I knew this process was not going to improve significantly until we addressed issues of quality, productivity, and accountability. I also knew, the staff that was working with the process was far better equipped to determine the quality of their work than I was.

I focused my attention on developing an environment where the Credentialing staff could be successful. One of the first things we did was to assign each physician file to a member of the Credentialing team. All aspects of the credentialing process, including quality control, were in the hands of the person assigned the file. I worked closely with the team to redesign the computer system they used to allow for better tracking of the credentialing process. Soon, each of the team members could easily identify when tasks started and ended, open tasks and tasks that were incomplete. At the same time, I analyzed aggregate times for all process steps and was able to provide the team with an understanding of how they were performing as a team and as individuals. This information included both historical experience and projected productivity targets for the coming months.

I was very happy with the results of our efforts. The team took ownership of their own work, and I got out of the day-to-day processing of physician files. The team took pride in their work and the quality improvement was significant. By working more effectively, the team was able to eliminate the backlog that existed when I started the job.

Lessons Learned:

The most important lesson learned in the redesign of the physician credentialing process is ownership can’t be created, only accepted. I was fortunate to have a staff willing to accept ownership of their own work. I merely facilitated the process.

One of the biggest challenges was making the process more tangible. “Credentialing” is a fancy term for reviewing a whole bunch of information from a whole bunch of places. We all felt a sense of frustration from not having a way to measure the progress of files as they moved through the credentialing process. With as many as 100 files in process at a time, the question “How are things going:” rarely resulted in a quantifiable answer.

As we gained an understanding of the various parts of the credentialing process, a consensus developed regarding significant performance measures. The key to this consensus was dialogue. The value and purpose of each performance measure was understood by the group.

The staff was more than willing to meet the challenges of the work before them. I found my role changed from quality inspector and staff supervisor to that of change agent and coach.

Applying The Lessons:

Creating ownership of the credentialing process was a process in itself. Here are a few of the main points of the process. They can be applied to many other situations.

- Assign responsibility: Each file was assigned to a staff member. This allowed for both accountability and appropriate acknowledgement of a job well done.
- Document the process: Identifying significant tasks made the entire process more transparent. The number of complete, and incomplete, tasks could easily be calculated. Measuring the amount of time each task required made it easy to determine if a staff member was getting behind in their work.
- Identify authority: Many parts of the credentialing process involved requests for information from other organizations. Knowing what tasks were within/outside the staff’s control clarified questions of responsibility.
- Enable self-monitoring: I created a set of reports for monitoring the work done by the credentialing staff. These reports were available for the staff to run whenever they wanted. Meetings with the staff had little drama since all information was available to everyone, at any time.

Just get over it

2007-07-07T09:48:00.000-07:00

I had an interesting opportunity this week to reflect on the role a leader plays in defining standards of fairness. In the course of 72 hours;

1. My brother explained how relatives of the owner of the restaurant where he works have exclusive rights to the wearing of body jewelry while on the job.
2. George Bush determined 30 months in prison was too much for his friend, Lewis Libby, to spend in prison for perjury charges.
3. I spent time working with a group of grade school kids on personal responsibility. One of the things we wanted them to take away was the fact: life is unfair, you need to just get over it.

There are two standards at my brother's workplace, one for family members and another for everyone else. While this is clearly wrong, it's reasonable to expect the owner will be rewarded appropriately. If there is validity to the assumption customers don't want to have their food served by persons with facial piercing, the customers will vote with their feet. The message "If you don't like the way things are, you can just go elsewhere." Is an powerful way to drive off good employees.

George Bush's decision to overrule the judge in the Lewis Libby case is a somewhat different situation. Libby was sentenced under guidelines defined by the Congress and affirmed by the Supreme Court. As the Chief Executive, we can reasonably expect Bush to support or recommend changes to the sentencing guidelines. If the guidelines are so unreasonable the commutation is justified, Bush could be expected to commute the sentences of the other 3,000 persons in similar circumstances.

The difference between the restaurant owner and the President is the mobility of the customers, employees, and U.S. citizens. If the restaurant owner doesn't feel like being fair, we would hope the customers and employees will just get over it and the business will fail. Unfortunately, most of us don't have the option (or desire) to simply move to another country. Also, George Bush is entitled to keep his job until the end of his term, regardless of how low his credibility.

On a personal note, I'm a middle aged blind guy. I had dreams of building and driving racecars at this point in my life. While I have found opportunities to get behind the wheel of a racecar on a number of occasions, these dreams are unfulfilled. That's just the way it is. I've gotten over it and found the alternatives are better than I could have imagined.

Things are not fair and we need to just get over it. The problem arises when the opportunity for fairness is not available or there is no consequence to inequity. My daughter Jessica used to tell me I was unfair when things didn't go her way. I used to tell her "When I tell you what will happen if you behave a certain way and then do exactly what I told you. That's fair.. It's only when I tell you one thing and do another, I'm being unfair.".

Honoring our Veterans

2007-06-30T09:23:00.000-07:00

ON Thursday night I watched the final episode of “Studio 60 on the Sunset Strip” on NBC. If the entire show had been written as well as the final episodes, I’m sure the program would have been renewed.

One of the story lines in the final episode involved a cast member dealing with the news his brother had been captured while with the military in Afghanistan.. A seasoned veteran of Special Operations was assigned to act as liaison while the family went through the ordeal.. The Special Ops guy was the representation of the best and brightest our Military has to offer, understanding both the tactical situation in Afghanistan and the Hell the family was going through. As a counter to the Special Ops guy, was a high-powered lawyer who knew someone who knew someone who could arrange to pay a ransom for the brother’s release..

As I watched, I realized I have little doubt in the capacity of our Military. I thought: “You’re going to trust your brother’s life to some people who work in alleys when the best of the best have been working the situation from the start? You’re a fool!” In the story, the brother chose to try to buy his brother’s freedom. Fortunately, the Special Ops team saved the day before the ransom plan unfolded.

On Friday morning I got another perspective of our Military personnel. The difference was this is a true story. The story was actually about the father of an Iraq veteran. After his son lost a leg to an IED the father has left his job to take care of his son. What struck me about the story is the fact the son is at Walter Reed Hospital. The father has become a volunteer nursing assistant and mentor to families of other hospitalized veterans. The father is going broke while taking care of his son. I wonder why the hospital doesn’t have enough staff to provide patient care ? There seems to be a disconnect somewhere here.

When I put the fictionalized situation along side the factual situation I can’t help but wonder about how our Military fits into our National identity. I truly believe our military can achieve the goals set before them. I just don’t believe our military is equipped to solve the political problems plaguing Iraq and Afghanistan. On the other hand, I can’t understand how we can actively neglect our Veterans and expect to keep a strong military. More importantly: where’s the outrage? Where’s the “We’ve got to honor the women and men we put in harms way.”?

If I apply the logic apparent in our treatment of our U.S. Military to other organizations it all gets senseless very quickly. What if Toyota decided its engineering program was so good it could eliminate it’s marketing efforts? Or Microsoft decided to eliminate software developers because they have such a dominance in the PC market? Both these examples would clearly lead to problems because Toyota needs to market its products, no matter how good they are, and Microsoft needs to keep up with changes in the market, no matter how big a share it has at the moment.. Similarly, we can’t expect our military to do everything in Iraq and

Afghanistan, no matter how good they are. Nor can we neglect our Veterans and still expect them to be the best of the best.

Studio 60:

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Iraq Veterans Father Becomes Hospital Fixture <http://www.npr.org/templates/story/story.php?storyId=11601689&sc=emaf>

dlococo@affinitybd.net

Summerfest - 40 and still strong

2007-06-28T07:05:00.000-07:00

Summerfest starts today. For the next eleven days Milwaukee will be the host to the world’s biggest music festival. Having lived in Milwaukee for the festival’s entire forty year history, I’ve gotten used to the annual buildup for Summerfest. While it has become a routine part of our lives, it is anything but routine.

Besides the hype of this being the fortieth anniversary of Summerfest, I have a daughter who will be starting her first real job at Summerfest tonight. Unlike most jobs, this one will start on the busiest day, at the busiest time. Many people take off from work at noon and head to the Summerfest grounds on it’s opening day.

One of the activities of this year’s festival was the dedication of the fountain at the main gate of the Summerfest grounds. The fountain is being dedicated in memory of Bo Black. Black lead Summerfest for nineteen years. Despite the fact Black had a falling out with the festival’s Board, she is the festival’s most notable director.

The enduring prominence of Summerfest on Milwaukee’s skyline is a testimony to the impact of good marketing. Summerfest has had, and still has its problems. Yet, to the average Milwaukeean it remains the biggest show each year.

The Thick of Thin Things

2007-06-12T20:33:00.000-07:00

We had our church’s “Administrative Services Commission” meeting last night. As the Chair of the group, I set the agenda. As an annual point of review, I asked the group to sign-off on the pricing structure for the snack bar adjacent to the gym. It was a great example of poor presentation and facilitation.

We use two different price lists at our snack bar, depending on the activity. While this is justifiable, it does cause some folks to wonder why a candy bar would be $0.50 on Tuesday and $0.75 on Saturday. Personally, I’d prefer we’d have a single price list. In fact, one or two price lists isn’t really the issue. The question is: Should we maximize revenue from earned income activities? Unfortunately, I didn’t figure this out until after I had sent the agenda out to the group.

When we got to the “Snack Bar pricing” item on the agenda, I got stuck. Some of my cohorts (accurately) pointed out this topic was not appropriate for the group to address. While I tried to redirect the group to the bigger question of revenue maximization, it was a lost cause. We ended up spending too much time on a small issue and never got to the larger, more important, issue.

My bad!

A Day at the Wilmot Speedway

2007-06-10T17:55:00.000-07:00

I had the chance to hang out in the pits at the Wilmot Speedway last night. Wilmot Speedway is a 1/3 mile dirt/clay banked oval track. The winged Sprint Cars go around the track at average speeds around ninety miles an hour. Three of my cohorts and I had the opportunity to show the crowd how blind people can put on a show at a race track. While our speeds were well below those of the professionals, I must say we did pretty darn good!

One of the highlights of the night was getting to sit in on the drivers meeting. There are many rules governing the technical aspects of auto racing. the drivers meeting is the only time the competition director gets to give all of the drivers a sense of what is expected of them. While there are many rules governing a drivers actions, once the drivers are on the track, they are largely using their own best judgment.

Todd’s discussion of starts and restarts was a prime example of where rules and judgment come into balance. It was also an example of how much authority relies on the consent of the governed. Todd wanted the drivers to know of their need to stay in line with the race leader. This gives the lead driver a tremendous amount of control over the conduct of the race. A slow pace can benefit the leader but can also greatly increase the likelihood of an accident occurring in the pack. It’s important to note this form of racing doesn’t count caution laps as part of the race. The leader only benefits by staying in front during competitive laps.

Todd also described a few situations where he would send racers to the back of the field. This is within the competition directors authority but in no one’s best interest. The fans come to see races won on the track, not from a rule book. Too much by the book leads to too few fans and too few fans leads to fewer and fewer races.

Sitting at picnic tables in front of a chalk board during the meeting gave an academic air to the situation. This feeling quickly left as the race cars fired up and headed out to the track. Auto racing is largely an individual sport where it’s every driver for themselves in a very dangerous situation. At the same time it is a sport where the fun, excitement, and safety are a direct function of the drivers confidence in their peers.

We could draw many direct parallels to organizational life but it’s quite rare for a business activity to fly by at ninety miles an hour. Instead, I’ll step back to my reason for being at Wilmot Speedway. The race for the blind drivers consisted of a blind person and a sighted guide. We used voice commands from the guide to circle the track at speeds up to forty miles an hour. Next time you get a chance to do one of those team building exercises consisting of a blindfolded person being directed to make a peanut butter sandwich, tell the facilitator you’d rather have the chance to drive the guide around the block a few times while blindfolded. That way the guide can have a little skin in the game! It’s also a great way to reflect on the concept of servant leadership.

http://www.wilmotspeedway.com/index.html

dlococo@affinitybd.net

Just Lead!

2007-06-03T20:02:00.000-07:00

I was sitting with my daughter on Friday morning. As the school year is coming to a close, Jessica is starting to anticipate her senior year of high school. She has the opportunity to take a leadership role in one of the student organizations at her school.

Jessica told me of her admiration for the leadership qualities of a fellow student. As she spoke, I found myself thinking of how Jessica could become an effective leader.

It occurred to me, unlike sports, music, dance, etc., leadership doesn’t really have a practice field. In general, we either take a leadership role or we don’t. While this can be a daunting prospect, it is also quite liberating. I reminded Jessica there are many opportunities every day to be a leader. She simply needs to make the choice.

On the very next day, I had an opportunity to practice what I had told Jessica. I had spent the day riding on the back of a Harley-Davidson motorcycle. The ride was an opportunity for blind persons to enjoy the feel of the open road. A number of groups had put a great deal of time and effort into making the day an enjoyable experience. The day concluded with a meal prepared by the Richfield Lions Club. It was surprisingly easy to get myself before the assembled crowd and thank the various organizers and groups on behalf of myself an the rest of my blind cohorts. It was just a matter of doing it.

dlococo@affinitybd.net

Collaboratively herding cats

2007-05-29T07:10:00.000-07:00

I’ve got a great idea! All that has to be done is create a place for nonprofit organizations to share their ideas and collaborative efforts will just naturally follow. It’s the “Field of Dreams” concept of “If you build it, they will come.”. Well maybe things might be a bit more complicated than that, but it all sounds logical.

My thought process on this comes from my background in finance and project management. I’ve spent much of my career leading projects consisting of a loose federation of constituencies. The exciting part of these projects has been the bringing together of people to get things done. I always found it fascinating to see people come together, add value to a project and then fall back into the scenery. I learned, after many years of experience, the buzz words “virtual teams” described what I had been doing.

Unfortunately, I’ve found a big stumbling block in my grand scheme. In the process of pitching my ideas I’ve found some very well informed people don’t hold a great deal of hope for my plan. It seems nonprofits don’t work and play well with each other. They’d rather do everything themselves than work collaboratively. While I’m not totally discouraged, this news gives me pause.

The reason I can’t get my head around nonprofit’s dislike of collaboration is because collaboration just makes so much sense. Among the reasons to collaborate; everyone can focus on core competencies, funders like collaboration, few in the nonprofit sector have enough resources, etc. But there’s my problem, I’m looking at the logic of the situation. The fact is, many nonprofits operate more on passion than logic.

I think my pitch for this idea needs to address the need to leverage passion with logic. Kind of like herding cats!

dlococo@affinitybd.net

Nonprofit Boards and Corporate Executives

2007-05-21T07:03:00.000-07:00

I had the opportunity to attend a Not For Profit Board Governance Seminar last Friday at the Kellogg Graduate School of Management in Evanston Illinois. The seminar was being offered as a supplement to the Executive MBA program offered at the school. I learned more about thinking like a corporate executive than I did about nonprofit boards.

I was struck by the discussion surrounding the United Way case. You may recall United Way’s Executive Director was ousted a number of years ago after his conspicuous consumption became too much for the organization to support. What was interesting was the emphasis placed on the E.D.’s behavior in the context of the nonprofit environment. In terms of the corporate world, the E.D. was a little out of bounds, but his behavior was consistent with his corporate peers. His downfall came from his failure to recognize important constituencies in the nonprofit world.

The E.D. relied heavily on first class travel and accommodations. These proved to supplement his productivity as a fundraiser in a significant, measurable, way. While these practices were supported by the United Way Board, they were not supported by the United Way Chapters or giving public. The Chapters and giving public showed their disapproval by significantly reduced support of the United Way.

It was noted neither the Chapters nor giving public were represented on the United Way Board. This was notable because most corporate boards represent a very narrow constituency. Rarely are subsidiary business units or customers represented on a corporate board.

The take away from this discussion was the need to balance actual productivity with perceived productivity. In the corporate world, the E.D.’s behavior may have been easily justified (with some specific exceptions). The marginal cost of first class travel and entertainment was more than justified by the increased funding of United Way. In fact, the E.D. significantly increased United Way’s ability to support important work in the nonprofit sector. This value was not made apparent to the Chapters and giving public. This communication failure lead to a revolt.

The fact is there is a constant need to balance marginal revenues and marginal expenses. For some productivity can be increased by placing a printer in their office. For others, a personal assistant is a justifiable expense. For a very few, a private jet is a justifiable cost to the organization. In all cases, transparency of the justification process is the key.

My departure from the seminar reinforced what I had learned. I had anticipated having to take a train into Chicago and then walking six blocks to Union Station to catch another train back to Milwaukee. My host for the seminar suggested the staff at the Allen Center would be happy to arrange a cab to take me to the train station in Glenview. Sure enough: at the end of the seminar I came downstairs to find a friendly voice saying “Mr. Lococo, I’ll show you to your cab.”. The cab ride raised the cost of the seminar by $18 and saved me about three hours. Well worth it!

dlococo@affinitybd.net

Confirmation

2007-05-16T19:14:00.000-07:00

My daughter, Jessica, was “Confirmed” into our church on May tenth. She has participated in activities, designed to prepare her for this event, over the past year. I was asked to write a letter to Jessica, to be read while on a confirmation retreat this past February. As I prepared to write the letter, I wondered what it means to “be confirmed”.

I realized I use the term “confirmation” on a regular basis. Most often I confirm the dates, times, and places of appointments. While I could confirm the date, time and place of Jessica’s Confirmation, her confirmation was going to be something other than verification of logistical details.

After consulting an on-line dictionary, I found some definitions fitting the activities of May tenth. One definition pertains to religious training: Jessica has now completed her formal religious training in our faith community. Another definition pertains to full participation in the church: Jessica can now participate in all aspects of our church (with the exception of those activities reserved for persons randomly selected by genetic circumstance).

My letter to Jessica reflected the time we have spent together. She is at a point in her life where she is becoming more independent. Each day there are fewer things she can learn from her mother and I. She is more and more becoming a full participant in her own community. I am grateful to have the chance to travel with Jessica as she journeys through life.

Lessons learned

In our public life we most frequently confirm facts; receipts telling us our e-mail has been opened, audited financial statements, or a number we expect will be our salvation when the desk clerk tells us the hotel is booked. We also find occasion to confirm the completion of various activities; graduations, retirements, project kick-offs, project wrap-ups, etc.

One thing we don’t seem to spend enough time doing is welcoming people as full participants. Many organizations announce the filling of positions or changes in probationary status. Far fewer organizations publicly express their confidence in the ability of staff to use their own best judgment in all situations.

Applying the lessons

In the most common use of the word, confirmation is a pretty simple concept. Confirmation as ‘welcoming a fully participating member of the community’ is a bit more abstract to most organizations. In all usages, the organization is stronger through confirmation of facts and people.

Here are a few thoughts on organizational confirmation:

Communicate how facts are confirmed. Shared understanding of how facts and processes are verified is the easiest path to quality improvement.
Communicate delegation of authority in the same way delegation of responsibility is communicated.
Make sure authority and responsibility are equally matched: Authority without responsibility is Paris Hilton. The kid in the paper hat that says “Assistant Manager” often has responsibility, but little authority.
If authority has been delegated, avoid getting involved: “I won’t get involved unless you and John have exhausted all other options.” And “I’ll talk to John about it for you.” are both confirming statements. They clearly confirm John’s authority or lack of it.

dlococo@affinitybd.net

Why should I be the one to step up?

2007-05-07T06:19:00.000-07:00

Last night, I invited a group of cohorts to join a “Leaders Circle. I believe the group would be personally and professionally enriching to all of us. At the same time, there is something sad in needing to invite people to participate in peer-to-peer sharing.

In an ideal world, we shouldn’t need to make arrangements to bring people together to learn from, and reinforce, each other. Of course, that is in an ideal world. In this world, I am aware I have learned a great deal by being associated with these folks for much of the past year. To end that association, simply because things don’t happen on their own, would be a great waste. I’m reminded of a sound bite from a fund-raiser promotion: “I kept thinking someone should do something. Then I realized: I’m someone.”.

If you’d like to know more about Leaders Circles, go to:

http://www.leaderscircles.org/theory.htm#anchor361578

dlococo@affinitybd.net

Down sizing through attrition

2007-05-04T06:19:00.000-07:00

My wife has been looking for a new job lately. One of the reasons she is looking is because the organization she works for uses seniority as a deciding factor when layoffs take place. As one of many Fiscal Assistant 1’s, she could get bumped by someone who doesn’t even know her job exists.

We’ve become aware of another scenario this week: The organization may downsize through attrition. One person in her group left a few months ago and isn’t likely to be replaced. Another person is planning to leave in the near future and her position may not be filled. The work load will simply get split among the remaining staff.

Downsizing through attrition is a fairly common practice these days. We hear of organizations saying they will eliminate jobs by simply not filling them when they are vacated. It occurred to me, while talking with my wife, there are some pretty powerful assumptions going on in the “downsize by attrition” strategy:

* The next person vacating a position represents excess capacity.
* If no one leaves their position, they are doing work vital to the organization’s mission.
* The organization’s leaders are not directly responsible for the allocation of staffing resources.

Unfortunately, this strategy is used all too often. Frequently the result is low morale and a general sense of insecurity among staff. A better strategy might be to have a plan to re-allocate positions to be more effective as an organization. As positions become vacated staff could be moved to more productive positions. The less productive positions could be eliminated or out-sourced. This would send the message: We must grow leaner, but in a thoughtful way.

Last night of Future Milwaukee

2007-05-02T16:44:00.000-07:00

Last night I participated in the last formal meeting of the Future Milwaukee Class of 2007. We spent the evening sharing the results of the projects we had been working on. The projects involved FM participants acting as consultants to area nonprofit organizations.

In virtually all projects, a common theme prevailed: The mission of the organization we worked with did not include a market based business model. While the work of nonprofits always will be different from that of for profit organizations, the need to be attentive to market forces was evident in the presentations.

I found myself having to address a comment the work my team performed was not a demand driven problem. While the comment was an over-simplification of the situation, we very likely would have approached the problem differently if it had been presented as a marketing challenge. In another case, a group was working to rebuild a declining revenue stream from holiday greeting cards. I asked the group about how general demand for greeting cards had changed in the same time period. The group didn’t know. demand for Another group project involved helping an organization find a market for a training guide. While this group was the situation as a marketing problem, the organization doesn’t seem likely to be launching a marketing campaign soon.

The take away from the night was the challenge we face as we engage in the Milwaukee Community. As nonprofits face greater requirements to be self sufficient, the need to rely on earned income streams becomes more important. We no longer have the luxury of simply asking for more money from more people.

I’ve found myself getting more interested in how nonprofits can enhance their revenue streams through earned income activities. I’ve found the Social Edge web site is a great resource. The link below is worth looking at.

http://www.socialedge.org/discussions/business-building/the-business-of-doing-good-how-to-devise-an-earned-income-strategy-december-2004/

Engagement versus Lobbying

2007-04-30T05:53:00.000-07:00

I attended a local conference on Peace and Justice over the weekend. The conference did a wonderful job of bringing people together in a friendly setting. The participants were from local faith based organizations.

The presenters highlighted a rich tradition of doctrine on the topic. Unfortunately, the conference also highlighted a lack of leadership from the pulpit. The majority of organized work takes the form of lobbying for legislation. Ironically, part of the reasoning for the lack of institutional leadership is the separation of church and state.

One of the big problems with the lobbying approach is it perpetuates a high burnout rate with little lifelong commitment. There is a need to focus on developing

1. A grass roots engagement in the underlying doctrine
2. Collaboration among the many groups striving to make a difference

The surprising thing I carried away was how universal the problems of engagement and collaboration are. I talked with one of the conference organizers at the end of the event. We’ll look at how we can leverage the wonderful work that has been done so far. The real challenge seems to be maintaining momentum once good people have gathered for the right reasons.

Dan Lococo dlococo@affinitybd.net

Hate Speach: Who's next?

2007-04-27T07:46:00.000-07:00

I received an e-mail yesterday with an urgent warning. Unless concerned citizens act quickly, homosexuals will be given the same protections as other people. Gasp! I had previously received warnings, from this same person, regarding the perils of letting “foreigners” into the country. While I find these messages disturbing, I’d rather have first hand knowledge of the hate speech floating around than be oblivious to it.

Whenever I hear people advocating for institutionalized discrimination against one segment of the population, I can’t help but wonder when persons with disabilities will be next. As a blind person, I’m actually wondering when the next volley of hate speech will be directed at me. Institutionalized discrimination against persons with disabilities seems to be a no brainer. The disabled population generally contributes less and consumes more than many other segments of our society. Why should these people be allowed the same rights and access to resources as others? I believe this is the argument Adolf Hitler used many times.

What I find most interesting about these messages is who I receive them from. The sender is a blind person who is unemployed and relies quite heavily on a variety of government subsidies and charity. I don’t know how to help this person understand how easily his logic regarding immigrants and gays transfers to persons with disabilities. The challenge is worth pondering because it plays out over and over again in so many ways.

Much of the work of Affinity By Design (ABD), LLC is focused on resource allocation. Unlike hate speech, ABD focuses on helping organizations understand where they can make best use of limited resources. Fact of the matter is, ABD works the positive side of the same coin as those participating in hate speech. The difference is organizations can drop or outsource unproductive business functions and services. A society needs to find the gifts each person brings to the table, even if those gifts ar not obvious at first glance.

Dan Lococo dlococo@affinitybd.net

Gonzales and Wolfowitz: The same but different

2007-04-26T07:37:00.000-07:00

It would seem Alberto Gonzales and Paul Wolfowitz are two peas in a pod. Both are Bush appointees. Both are under investigation for misuse of the authority they have been granted. More importantly, both are seen as undermining the mission of the organization they lead. Both have many recommendations they resign their posts.

There is, however, a significant difference in the two situations. While both were appointed by George Bush, they don’t both report directly to him. As Attorney General, Alberto Gonzales “works at the pleasure of the President”. Paul Wolfowitz works for the Directors of the World Bank. In looking at the question of whether these two should remain in their current positions, it is ultimately the decision of the President and World Bank Directors, respectively.

Alberto Gonzales is a political appointee carrying out the agenda of a president who is not necessarily carrying out the agenda of the American people. It’s hard to believe the firings of the Federal Prosecutors weren’t politically motivated. It’s also hard to believe the firings are not consistent with the agenda of the Bush Administration. Gonzales’ biggest crime his his firm position that he does not know how the Justice Department functions or why anyone thinks he should be held accountable for what happens. Fact is, as long as his boss thinks “He’s doing a heck of a job!”, he is the Attorney Genaral.

Paul Wolfowithz is another story. As World Bank President, Wolfowitz is charged with carrying out the mission of the organization. Wolfowitz’s loyalties seem to be split between the Directors he reports to and the Bush Administration. There is a conflict between the agendas of his current and former employers. Ultimately, it is the decision of the World Bank Directors to decide his continued employment. If the World Bank Directors don’t have confidence in Wolfowitz’s ability to carry out the Bank’s mission, they need to accept responsibility for replacing him.

From an organizational standpoint, Gonzales and Wolfowitz represent a strange combination of leadership and accountability. George Bush appears to have confidence in the abilities of his Attorney General. Gonzales appears to be avoiding responsibility for what goes on in the Justice Department. This is news because the American people lack confidence in the President’s ability to lead the nation. The Directors of the World Bank lack confidence in Paul Wolfowitz’s ability to carry out the mission of the World Bank. Wolfowitz doesn’t seem compelled to take direction from those he serves. This is news because the World Bank Director’s appear unwilling to act.

http://www.commondreams.org/archive/2007/04/25/744/

Pareto’s Principle: The 80-20 Rule

2007-04-23T09:40:00.000-07:00

As a business analyst, I’ve used a wide variety of tools and techniques over the years. Among the tools I’ve found useful are: Gantt charts, internal rate of return analysis, linear programming, marginal revenue/expense analysis, statistical analysis, and systems modeling. While I’ve found these tools useful, they can be pretty hard to use and understand. Pareto’s Principle (the 80/20 rule) is both easy to use and easy to understand.
Pareto’s rule states that a small number of causes are responsible for a large percentage of the effect. In other words, most of the results we see can be traced back to a small number of sources. Conversely, most sources have a very small impact on overall results. In general, approximately 80% of the results in any given category can be traced back to approximately 20% of the sources.
I’m regularly surprised at how often Pareto’s Principle applies. I’ve used Pareto’s rule to identify the small number of donors who provide the majority of contributions, the small number of suppliers who provide the majority of goods and services, the small number of items that make up the majority of an organizations total assets. Each time I apply Pareto’s rule, I am surprised at how close it comes to validating the principle 20 percent of the donors/suppliers/items account for 80 percent of the contributions/goods/assets.
Lessons learned
The most common use I have for Pareto analysis is in performing a quick survey of an organization’s data. The sources providing 80% of the results create a natural starting point for further analysis. Pareto’s Principle makes it a safe bet this will be a manageable group to deal with.
It is important to remember Pareto’s Principle describes how things are, not necessarily how they should be. When we look at the list of equipment an organization holds, we find many items of low value and a much smaller number of high value items. Similarly, for many organizations wages and benefits make up the largest expense category. In both cases Pareto’s Principle is true, but not surprising. On the other hand, finding most of the organization’s revenue comes from a few sources may be cause for further investigation.
Applying the lessons
Once the small group of sources responsible for the majority of results has been identified, it’s time to start asking questions. Pareto’s Principle is a great catalyst for generating questions.
Some of the questions coming out of a Pareto analysis might be:
* Why do so many clients have so little interaction with the organization?* Could we get better pricing if we spread our purchases evenly over three vendors instead of using one main vendor and eight others on an occasional basis?* How different is our tracking of staplers compared to pieces of furniture?* What motivates the small number of persons who contribute so generously?
Frequently, the greatest leverage comes from looking at the fringes of the 80/20 relationship. It’s much easier to move a donor from the 75th to 80th percentile than to the 5th percentile from zero. Moving the requirement for purchase order approval from $100 to $200 can free a tremendous amount of administrative time, with little loss of control.
If you use Microsoft Excel, the PERCENTILE, QUARTILE, and RANK functions can be very helpful in performing Pareto analysis.

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Skiing Blind

2006-03-01T07:47:00.000-08:00

I’ve been downhill skiing for the past 20 years.  I learned to ski after coming to grips with the fact I have a degenerative eye disease called Retinitis Pigmentosa.  Skiing is an activity I view as a just reward for having to deal with the challenges of cane travel in the winter months.  Navigating snowy streets and randomly shoveled sidewalks can be a slow tedious process after a winter storm.  That same storm also provides for the sense of freedom that comes with flying down a ski hill.

I ski with a guide who acts as a lookout for obstacles along the ski run and provides verbal feedback.  I recently had an opportunity to help train a new ski guide and the experience got me thinking of the relationship between a blind skier and a guide.  This relationship has strong parallels to the role of leaders to those being led.

There are two modes of skiing for blind people:  guided and free skiing.  When I’m being guided, the guide lets me know, through verbal instructions, the direction and timing of turns.  It’s my job to focus on the guide’s voice and ignore the audio clutter that goes with a busy ski hill.  It’s not hard to figure out the verbal cues from the guide.  A set of rhythmic left and right turns indicates an open ski hill.  A long traverse followed by a number of short turns, followed by another long traverse indicates we are navigating around obstacles on the hill.   If the turn leading to a long traverse is delivered at a significantly higher pitch than normal, it’s a safe bet we are avoiding someone who is out of control.  Time rarely allows for explanations of the need for evasive action while going down the hill.  I’ve found the details of such things less and less interesting as the years go by.

Free skiing involves very little direction from the guide.  If the ski hill is free of obstacles, the guide will let me know I’m on my own.  At that point, the guide becomes an observer, and doesn’t provide specific direction until necessary.  When I free-ski, I use the pull of gravity and my own best judgment as my guide.  The interplay of the natural rhythm of the contours of the hill, the force of gravity and my skill as a skier provide for an experience that is hard to beat.

Recently, I was skiing at Sunburst ski area, here, in Southeast Wisconsin.  The snow was fast and the hill was pretty open.  I ski with an organization called BOLD (Blind Outdoor Leisure Development).  BOLD connects blind people with sighted guides for a wide variety of activities throughout the year.  Bob, a prospective guide, stopped us at the top of the hill to ask if he could shadow Mary and I to see what he could learn about how we work together.  I’m always open to helping with new guides.  It’s the only way to ensure the future of blind skiing.

Bob chased Mary and I down a few quick runs.  After each run, we stopped to discuss the run and the guiding techniques we were using.  I asked Bob if he wanted to guide me down a few runs and he hesitantly agreed.  Bob didn’t realize this was a test.  If a new guide isn’t somewhat hesitant the first time they ever guide a blind person down a ski hill, I’m not sure I’m going to want to trust them with my life.

The first thing I did with Bob was make sure we were in agreement on our roles.  I wanted Bob to know I would be taking my directions only from him.  While Mary was going to be shadowing us, the only direction I would listen for from her was “Stop”.  Conversely, my job was to follow all directions Bob gave me.  If I second-guess my guide, I might find myself moving into a dangerous situation, rather than away from it.  Once we had this understanding, we headed down the hill.  Granted, I didn’t ski as aggressively as I did with Mary, but we made a couple of good runs.  I’m sure Bob will make an excellent guide.

After Bob had a chance to get a feel for guiding, Mary and I went back to skiing together.  I had a chance to make a few free-skiing runs before the night was over.  Free skiing is both scary and exhilarating.  I sometimes find the sensation of flying out into the abyss unnerving.  On the other hand, I find I often ski more aggressively when I free-ski than when being guided.  Instead of listening for my guide, I feel for the sensation of my weight settling on the skis.  This is how I know to start the next turn.

I enjoy downhill skiing because it is physically and mentally demanding.  As a blind person, one of the demands of skiing is to accept the leadership of my guide and follow their direction without question.  Sometimes this requires me to ignore what sounds like a dangerous situation.  On the other hand, there are times when I thoroughly enjoy just listening to my guide’s directions, oblivious to the difficulty of the terrain or the sounds of other skiers on the hill.  I know I will have a great time just by paying attention to what I’m supposed to be doing, and nothing else.

Free skiing provides a very different situation.  I try to take full advantage of the opportunity to be self-directed.  If a guide gives me the go-ahead to ski on my own, I trust they will give me the chance to exercise self-leadership.  This self-leadership includes staying within the established boundaries of the ski run (tree lines) and listening for direction as needed.  Due to the binary nature of free-skiing or guided skiing, it doesn’t work for a guide to provide casual direction as we go down the hill.  I need to know the guide is providing leadership or I’m using my own best judgment.  In other words, I need to know if the guide is acting as leader or servant-leader.

I accept the leadership guides provide because I trust the excellent job BOLD does in developing well-qualified guides.  My confidence in the individual guide stems from my confidence in the integrity of the organization. Conversely, good leaders always enhance the integrity of an organization.

Looking in the Refrigerator

2005-12-06T12:47:00.000-08:00

Looking in the Refrigerator

My daughter Rachel’s end-of-season volleyball tournament found us with an hour for supper and nothing but fast food places or the school snack bar for a meal.  Neither Rachel nor I was excited at the prospect of steamed hot dogs or taco chips doused with cheese whiz.  As an alternative, I asked Rachel if she wanted me to bring some food from home for supper.  When she asked me what I would make, I told her “Something in a wrap.”.  “Something in a wrap.” Is code for “I’ll look in the refrigerator and see what I can put together.”.

The resulting meal featured a soft shell taco filled with apple, cheese, olives and rice.  I made a sauce including mayonnaise, cinnamon and ground ginger for Rachel.  My own wrap was a variation on Rachel’s.  At the dinner break, I overheard Rachel’s coach asking for the recipe, after having a taste test.  Rachel explained I didn’t use a recipe, I just made it.

I learned to cook when I was sixteen, working in a restaurant my parents managed.  Restaurant cooking gave me the discipline to make the same meal the same way, time after time.  Around the same time, I asked my Grandpa Lococo to pass along his recipe for Sicilian Steak.  Grandpa was more than happy to show me how to make Sicilian Steak.  The only problem was Grandpa never made the same amount of meat twice and he never used measuring spoons or cups.

I can’t say how many times Grandpa showed me how to make Sicilian Steak or how many times I tried to make the meat before I got it close to the way Grandpa’s tasted every time he made it.  Grandpa has been gone for more than twenty-five years now.  In that time, I’ve taken ownership of Grandpa’s recipe.  I don’t make it just like Grandpa did, but the results are true to what I learned from him.

The training and study I’ve done is similar to my time working as a cook in the restaurant.  I’ve earned an MBA on top of degrees in finance and data processing.  I also try to spend at least half an hour a day reading books on such things as organizational development, tactical planning, leadership, etc.  The methodologies and models I’ve picked up along the path of my career serve as a great starting point for organizational and situational assessment.

When I look at my consulting practice, I find interesting parallels to my style of cooking.  I’ve come to recognize training and methodology, like recipes in a cookbook are merely a starting point.  Sure, those things make for interesting conversation, but it’s the results that really matter.  When it comes to meeting organizational goals by overcoming obstacles, most often the answer is “Something in a wrap.”  It’s the people, the dynamics of the situation and the expected results that make the ingredients for the most effective solutions.  The satisfaction of being a part of effective organizational change comes from the knowledge that there wasn’t a cookbook recipe involved.  Everybody just pulled together to meet the challenge.

The holidays are a time when people savor the gift of family and friends while sharing special foods.  I hope you take the opportunity to check out what makes Bill the maintenance man’s bean dip, Aunt Sally’s mashed potatoes, and Cousin John’s brownies so very special.  Chances are, the answer has more to do with the person than the recipe.

By-the-way:  When I make Sicilian Steak, I marinade thinly sliced beef or pork tenderloin in olive oil and a clove of garlic.  For the breading, I just add salt, pepper, garlic powder, and some grated parmesan cheese.   Cook it over indirect heat until done.       Left over Sicilian Steak is great when combined with stuff from the refrigerator in a wrap.

Repairers of the Breach

2005-10-31T05:31:00.000-08:00

Repairers of the Breach

On November 11, we will be going to visit the Repairers of the Breach, a daytime shelter for homeless people.  I started going to Repairers last year and have made it a point to participate every chance I get.

The St. Pius Justice and Peace Commission has made a commitment to visit the Repairers of the Breach four times a year.  We make 80 simple bag lunches and take them down to the Repaierers center..  After eating lunch in the living room of the center, we form into small groups to reflect on the Gospel for the upcoming Sunday.

My wife and I started participating in this ministry because we had the time and it seemed to be the right thing to do.  Over time, I have found the experience goes far beyond making sandwiches and being nice to homeless people.

One of the first things I learned about myself through this experience is the value of following.  Although I started cooking in restaurants when I was 16, my failing vision makes the work of assembling the bag lunches a challenge for me.  I usually end up doing menial tasks that anyone could do.  At first, it hurt my pride to do such unimportant work.  It took me a while to realize the goal is to feed the homeless, not to rank the relative importance of one task over another.

The Repairers of the Breach center is an experience unto itself.  The center is open to all who seek their services.  There is no membership list, so we don’t know who we’ll meet until we get there.   It is an effort to be present to the moment and not cling to the safety of familiar faces.  This effort is rewarded with witness to the work being done there.  The center provides opportunity for the women and men who gather there to regain dignity they have lost through a wide variety of circumstances in their lives.

The Gospel reflection activity has certainly been the biggest threat to my comfort zone.  It can be approached from a number of levels.  At the most surface, we act as facilitators of the reflection process and can keep a distance from the proceedings.  I find a subtle beauty in being open to the prayers of others whose needs seem so much greater than my own.  Yet my needs are present, and the gift of prayer is offered on my behalf.  It is a humbling experience.

The Gospel reading we will reflect on is Mathew 25:14-15, 19-21.  It is the parable of the man who entrusts his servants with his possessions while he is on a journey.  To one he gives one talent, another two talents and five talents to the third.  Upon the man’s return he learns what his servants have done with the possessions they have been entrusted with.  The first of the servants has buried the one talent he has received and made nothing of it.  The other two have put the master’s money to work and doubled the possessions they were entrusted with.

In reflecting on Mathew, I find myself wondering if the only options are to receive one talent and bury it or to receive 2 or 5 talents and double them.  Could I have received 5 talents and buried 3 of them?  I don’t know the answer to this question.  I have a strong suspicion, however, I am far more likely to find the answer through the prayers of a homeless person than sitting at the comfort of my dining room table.

Maximizing the value of a sandwich`

2005-08-22T10:49:00.000-07:00

My wife and I went to Sam’s Club, this past weekend, to stok up on a few things best purchased in large quantities.  We were surprised at the number of convenience foods being offered for sample.  I suspect the sample selection had something to do with the end of Summer and beginning of the school year.

I had some pretty good grapes and even made a purchase decision after trying one sample.  I also resolved to never spend money on some of the products I tried.  Mostly, I wondered who would buy the products being sampled and how they would make their purchase decision.

In a free market, the success of products, and ultimately producers, is determined by consumer choice.  Those producers that deliver value to the marketplace succeed, those who do not deliver value, fail.

I see myself as a pretty typical consumer.  I generally look for price, quality and convenience in the products I purchase.  What becomes interesting in doing taste tests is recognizing the role substitutes and compliments play in the purchase decision.

Two memorable samples were a breakfast sandwich and a barbequed pork sandwich.  Both were ready for the microwave and cost about a dollar per serving.  The breakfast sandwich was marginal, at best.  I’m sure my reasoning was influenced by the fact I make a higher quality breakfast sandwich for about one fourth the cost.  Also, we generally don’t eat this kind of food for breakfast.  If we were regularly buying similar quality food at the local drive-thru, this would be a good value.  Since we make breakfast sandwiches as an occasional treat, I don’t mind the extra effort that goes into homemade.

The BBQ pork sandwich was an interesting contrast.  Making good BBQ is as much art as science.  The leanest, most expensive, cut of pork doesn’t make the best BBQ.  It’s the recipe and the cooking method that makes all the difference.  The meat was pretty tasty, but the bun was disappointing.  The meat was a good value, the bun was not.  When I figure the cost per pound for this tasty BBQ on a bad bun, I realize I’d be much happier if I bought the meat and some good buns separately and put them together myself.

From an organizational perspective, the challenge is to determine what is value to the consumer.  This can be determined through any number of marketing tools and methods.  A balancing influence on the delivery of consumer value is the generation of value to the organization.  There is much to be gained by figuring out what element of the product the consumer values the least.  The breakfast sandwich was comparable to the drive-thru, but the cheese seemed to be of lower quality. In the pork sandwich, the meat was quite good but the bun was marginal.  By minimizing the costs of cheese and buns, the producers both delivered a product of value to the marketplace and maximized their own profits.

The model of maximizing total value to the consumer by both maximizing and minimizing resource inputs is a good example for organizational life.  By matching the level of support each element of our organization makes to the support of our mission with the resources consumed by that element, we could maximize delivered value, while minimizing resource consumption.  The key is to fully resource the elements consumers’ value, while minimizing those elements consumers are indifferent to.

Why Affinity By Design?

2005-08-20T04:14:00.000-07:00

Why Do I call my consultancy “Affinity by Design”?
Written:  August 2005

On August 1st the Wisconsin Department of Financial Institutions accepted my application to start doing business as Affinity By Design, LLC.  I’ve gotten positive feedback on the name and hope it makes a lasting impression on people.

There are a number of reasons I like the name Affinity By Design.  The fact the name has a nice ring to it is good.  I’m also happy to see where the name falls in alphabetic indexes I’ve reviewed.  Most importantly, however, I find “affinity by design” to be an intriguing idea.

I found two definitions of the word affinity that are quite meaningful to me:

A close connection marked by community of interests or similarity in nature or character.

Rapport, resonance — relation of mutual understanding or trust and agreement between people

In contrast, the phrase “by design” suggests action, in an intentional manner.  The meaning I give to the phrase “affinity by design” is the intentional bringing together of a community of people for the purpose of pursuit of a common interest based upon mutual trust and understanding.

The majority of my professional life has been spent helping organizations put together the best combination of resources to get the job done.  In my personal life, my wife and I have spent many years working with couples to build sustainable marriages.  A common element in both settings is the enthusiasm surrounding the start of the journey.

At the start of a new organization, endeavor or committed relationship, it is the pursuit of a common interest based upon mutual trust and understanding that drives many decisions.  Questions like “What do we have to do to make this work?” and responses like “I can take care of that.” Are common at the start of many new ventures.

When my wife and I talk to groups of couples preparing for marriage, I use a model portraying “Passion”, “Intimacy”, and “Commitment” spaced in a circle.  All three are critical to a successful, sustainable marriage.  The relationship could start from any point on the circle, and we’d like to think we could always keep a perfect balance between passion, intimacy and commitment.  The challenges of life put a strain on this balancing act.  Our personal experience has shown sometimes all we have left is our commitment.  Our relationship is all the better for having met these challenges.

By substituting “Organizational effectiveness” for “Intimacy”, we can apply the same model to organizational life.  New ventures are often a result of a passion for a mission, a commitment to serving a set of clients, or out of a recognition that the organization has the capacity and capability to effectively address a need in the community.

The challenges faced by organizations are many.  At the start of any organizational endeavor, it is normal to divide the work to be done.  These divisions are most commonly done around discrete business functions.  As the organization grows, business functions grow into organizational units with their own sense of passion, effectiveness, and commitment.

In personal relationships, the passion is lost and commitment strained when couples forget how to sustain the level of intimacy that once bound them so closely together.  Similarly, organizations sometimes become a collection of distinct business units, all striving to be highly effective, but oblivious to the impact they have on other units within the organization.  In fact, improvements in effectiveness in individual business units can sometimes be a source of ineffectiveness at the organizational level.

As a couple, Helen and I work to keep a balance of passion, intimacy and commitment in our relationship.  Some of the ways we do this is by starting each morning with a renewal of our wedding vows and taking time to be together with no specific agenda.  Similarly, organizations need to find ways to intentionally come together to reinforce the mission they have mutually agreed to pursue.  While hugs and long walks might be helpful in both situations, a reconciliation of strategic plans to operational practices may be a more direct route to organizational effectiveness.

The mission of Affinity By Design, LLC is to help organizations meet their goals by overcoming obstacles.  The approach I use is to bring together groups of individuals to determine how they can channel their passion and commitment for the benefit of those who are served by the organization’s mission.