Management – Page 16 – artdiamondblog.com

Robotic Milkers Are Less Costly, Easier to Manage and More Humane to Cows

(p. A1) EASTON, N.Y. — Something strange is happening at farms in upstate New York. The cows are milking themselves.
Desperate for reliable labor and buoyed by soaring prices, dairy operations across the state are charging into a brave new world of udder care: robotic milkers, which feed and milk cow after cow without the help of a single farmhand.
Scores of the machines have popped up across New York’s dairy belt and in other states in recent years, changing age-old patterns of daily farm life and reinvigorating the allure of agriculture for a younger, tech-savvy — and manure-averse — generation.
. . .
The cows seem to like it, too.
Robots allow the cows to set their own hours, lining up for automated milking five or six times a day — turning the predawn and late-afternoon sessions (p. A19) around which dairy farmers long built their lives into a thing of the past.
With transponders around their necks, the cows get individualized service. Lasers scan and map their underbellies, and a computer charts each animal’s “milking speed,” a critical factor in a 24-hour-a-day operation.
. . .
The Bordens and other farmers say a major force is cutting labor costs — health insurance, room and board, overtime, and workers’ compensation insurance — particularly when immigration reform is stalled in Washington and dependable help is hard to procure.
The machines also never complain about getting up early, working late or being kicked.
“It’s tough to find people to do it well and show up on time,” said Tim Kurtz, who installed four robotic milkers last year at his farm in Berks County, Pa. “And you don’t have to worry about that with a robot.”
The Bordens say the machines allow them to do more of what they love: caring for animals.
“I’d rather be a cow manager,” Tom Borden said, “than a people manager.”

For the full story, see:
JESSE McKINLEY. “With Farm Robotics, the Cows Decide When It’s Milking Time.” The New York Times (Weds., APRIL 23, 2014): A1 & A19.
(Note: ellipses added.)
(Note: the online version of the story has the date APRIL 22, 2014.)

Steelcase Designs Quiet Space for Introverts to Think

(p. D2) Introverts’ nervous systems are more sensitive to stimulation than extroverts’ are, according to Susan Cain, author of “Quiet: The Power of Introverts in a World That Can’t Stop Talking.”
“When introverts get too much stimulation, they feel overwhelmed and jangled,” she said.
With no privacy or way to shield themselves from the commotion, introverts, estimated to make up one-third to one-half of the population, can feel exposed in the modern workplace. Being on display is imposing and distracting to them, Cain said.
Office furniture maker Steelcase Inc. is trying to give the left-behind introverts some love. Its new set of “quiet spaces,” designed in collaboration with Cain, aims to help introverts relax and focus away from the eyes of their coworkers.
. . .
Part of Steelcase’s pitch to potential customers: this is a talent issue. Why spend so much time and money recruiting employees if they can’t focus and work well in your space?

For the full story, see:
RACHEL FEINTZEIG. “How to Avoid that Sinking Feeling When in the Fish Bowl.” The Wall Street Journal (Tues., June 3, 2014): D2.
(Note: ellipsis added.)
(Note: the online version of the story has the date June 2, 2014, and has the title “For Office Introverts, a Room of One’s Own.”)

The book mentioned in the passage quoted is:
Cain, Susan. Quiet: The Power of Introverts in a World That Can’t Stop Talking. New York: Crown, 2012.

Zambrano Was Cement Process Innovator

(p. A22) Beginning in 1992, Mr. Zambrano bought up far-flung producers to create the third-largest cement company in the world. He remade each new acquisition, introducing high technology and logistical efficiencies that made Cemex the subject of business school case studies at Harvard and the Massachusetts Institute of Technology.
From his own computer Mr. Zambrano could monitor any Cemex operation in more than 50 countries, said Rossana Fuentes-Berain, a Mexican journalist who wrote a 2007 book about Mr. Zambrano, “Grey Gold.”
What distinguished him was “the technology, the management and the hunger to prove that you can be as good as anybody in the market,” Ms. Fuentes-Berain said.

For the full obituary, see:
ELISABETH MALKIN. “Lorenzo Zambrano, 70, Leader of Cemex, Dies.” The New York Times (Thurs., May 15, 2014): A22.
(Note: the online version of the obituary has the date MAY 13, 2014, and has the title “Lorenzo H. Zambrano, Head of Cement Giant Cemex, Dies at 70.”)

The biography mentioned above, as of this posting, is only available in Spanish:
Fuentes-Berain, Rossana. Oro Gris: Zambrano, La Gesta de Cemex y la Globalizacion en Mexico. Aguilar, 2007.

Boring Jobs Cause Stress and Lower Productivity

(p. B4) A study published this year in the journal Experimental Brain Research found that measurements of people’s heart rates, hormonal levels and other factors while watching a boring movie — men hanging laundry — showed greater signs of stress than those watching a sad movie.
“We tend to think of boredom as someone lazy, as a couch potato,” said James Danckert, a professor of neuroscience at the University of Waterloo in Ontario, Canada, and a co-author of the paper. “It’s actually when someone is motivated to engage with their environment and all attempts to do so fail. It’s aggressively dissatisfying.”
It’s not just the amount of work, Professor Spector said, also but the type. . . .
“You can be very busy and a have a lot to do and still be bored,” he said. The job — whether a white-collar managerial position or blue-collar assembly line role — also needs to be stimulating.
. . .
In a 2011 paper based on the doctoral dissertation of his student Kari Bruursema, Professor Spector and his co-authors found that the stress of boredom can lead to counterproductive work behavior, like calling in sick, taking long breaks, spending time on the Internet for nonwork-related reasons, gossiping about colleagues, playing practical jokes or even stealing. While most workers engage in some of these activities at times, the bored employee does it far more frequently, he said.

For the full story, see:
ALINA TUGEND. “Shortcuts; The Contrarians on Stress: It Can Be Good for You.” The New York Times (Sat., OCT. 4, 2014): B4.
(Note: ellipsis added.)
(Note: the online version of the story has the date OCT. 3, 2014.)

The Experimental Brain Research study mentioned above, is:
Merrifield, Colleen, and James Danckert. “Characterizing the Psychophysiological Signature of Boredom.” Experimental Brain Research 232, no. 2 (Feb. 2014): 481-91.

The article mentioned above, that is co-authored by Spector, is:
Bruursema, Kari, Stacey R. Kessler, and Paul E. Spector. “Bored Employees Misbehaving: The Relationship between Boredom and Counterproductive Work Behaviour.” Work & Stress 25, no. 2 (April 2011): 93-107.

Bill Gates on Xerox’s Inventions and Mistakes

(p. C3) Not long after I first met Warren Buffett back in 1991, I asked him to recommend his favorite book about business. He didn’t miss a beat: “It’s ‘Business Adventures,’ by John Brooks, ” he said. “I’ll send you my copy.” I was intrigued: I had never heard of “Business Adventures” or John Brooks.
Today, more than two decades after Warren lent it to me–and more than four decades after it was first published–“Business Adventures” remains the best business book I’ve ever read. John Brooks is still my favorite business writer. (And Warren, if you’re reading this, I still have your copy.)
. . .
One of Brooks’s most instructive stories is “Xerox Xerox Xerox Xerox.” (The headline alone belongs in the Journalism Hall of Fame.) The example of Xerox is one that everyone in the tech industry should study. Starting in the early ’70s, Xerox funded a huge amount of R&D that wasn’t directly related to copiers, including research that led to Ethernet networks and the first graphical user interface (the look you know today as Windows or OS X).
But because Xerox executives didn’t think these ideas fit their core business, they chose not to turn them into marketable products. Others stepped in and went to market with products based on the research that Xerox had done. Both Apple and Microsoft, for example, drew on Xerox’s work on graphical user interfaces.
I know I’m not alone in seeing this decision as a mistake on Xerox’s part. I was certainly determined to avoid it at Microsoft. I pushed hard to make sure that we kept thinking big about the opportunities created by our research in areas like computer vision and speech recognition. Many other journalists have written about Xerox, but Brooks’s article tells an important part of the company’s early story. He shows how it was built on original, outside-the-box thinking, which makes it all the more surprising that as Xerox matured, it would miss out on unconventional ideas developed by its own researchers. (To download a free e-book of “Xerox Xerox Xerox Xerox,” go to GatesNotes.com.)

For the full review, see:
BILL GATES. “My Favorite Business Book.” The Wall Street Journal (Sat., July 12, 2014): C3.
(Note: ellipsis added.)
(Note: the last quoted sentence is in the location, and has the wording, of the printer version, not the online version.)
(Note: the online version of the review has the date July 11, 2014, and has the title “Bill Gates’s Favorite Business Book.”)

The book being reviewed is:
Brooks, John. Business Adventures: Twelve Classic Tales from the World of Wall Street. pb ed. New York: Open Road Integrated Media, Inc., 2014.

Established Companies Are Not Structured for Exponential Growth

(p. A13) Why are large tech companies losing the ability to innovate? Entrepreneur and author Salim Ismail studies the new generation of “exponential corporations,” enterprises that grow 10 times faster than the average rate. He believes that established companies simply aren’t structured for this kind of speed. So their only choice is to buy those companies that can still innovate rapidly.
If Mr. Ismail is correct–and the current dynamic in Silicon Valley suggests that he may be–we’re on the brink of a major restructuring of business strategy, venture capital and almost every part of the high-tech world. It may be time to stop waiting for famous tech companies to roll out the hottest new product and start investing in startups that can sell their innovations to big companies. Tech appears to be evolving into a different kind of field: one that is, paradoxically, more static at the top but also more dependent on entrepreneurship than ever before.

For the full commentary, see:
MICHAEL S. MALONE. “An Innovation Slowdown at the Tech Giants; Seen anything new and big lately from Cisco, Yahoo or even Twitter?” The Wall Street Journal (Weds., July 2, 2014): A13.
(Note: the online version of the commentary has the date July 1, 2014.)

The Ismail research mentioned above, is discussed further in:
Ismail, Salim, Mike Malone, and Yuri van Geest. Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, Cheaper Than Yours (and What to Do About It). New York: Diversion Books, 2014.

The “Miasmic Smog” of Europe’s Nostalgia “Stifled the Imaginations of Those Who Stayed”

(p. D12) Most people remember Mr. Drucker, a longtime contributor to the Journal who died in 2005, as the most influential management consultant of the 20th century. What they may not know is that, like Mr. Zweig, he was born in Austria and fled from the Nazis when Hitler came to power. What’s more, Mr. Drucker’s memories of prewar Vienna, which he compared in “Adventures of a Bystander” to Atlantis, Plato’s imaginary island paradise that fell from favor with the gods and disappeared into the Atlantic Ocean, are no less richly evocative than those in “The World of Yesterday.”
. . .
Born in 1909, three decades after Mr. Zweig, [Drucker] concluded as a young man that Europe’s nostalgia for its prewar past was a “miasmic smog” that stifled the imaginations of those who stayed there. So he emigrated to the U.S., where he found an open society that was bumptiously naive but also vital and forward-looking: “Unlike Europe, where it was felt that ‘the center cannot hold,’ the ‘center’ held in America. Society and community were sound, hale, indeed triumphant.” And whereas Mr. Zweig succumbed at last to despair, Mr. Drucker unhesitatingly embraced America’s democratic culture and flourished, building a new career for himself.

For the full essay/review, see:
TERRY TEACHOUT. “SIGHTINGS; One War, Two Fates.” The Wall Street Journal (Fri., June 6, 2014): D12.
(Note: ellipsis, and bracketed name, added.)
(Note: the online version of the essay/review has the date June 5, 2014.)

The Drucker book discussed by Teachout is:
Drucker, Peter F. Adventures of a Bystander. New York: Harper & Row, 1979.

Lack of Innovation, Not Globalization, Killed U.S. Furniture Industry

The following is from a review by Marc Levinson, one of our leading experts on process innovation. I’m guessing that there is more wisdom in the review than in the book being reviewed:

(p. C6) . . . it was not by chance that the U.S. furniture industry provided easy pickings for foreign manufacturers.

In the 1990s, U.S. furniture making was a backward industry. Its productivity–the efficiency with which capital and labor are put to use–grew only one-third as fast as in manufacturing overall. While firms in other industries were investing in laser cutters and five-axis milling machines, furniture makers were devoting only 2.6% of their revenue to capital investment. Instead, they relied heavily on cheap labor, paying their average worker 29% less than the average in all manufacturing.
Nor was there much innovation. When Ikea’s flat-pack furniture, designed to minimize shipping costs and leave assembly to the purchaser, arrived in the United States in 1985, American manufacturers had nothing like it. Ms. Macy reports that Universal Furniture cut costs by designing for efficient production at high volume; U.S. manufacturers did not. Similarly, when JBIII countered the distant Chinese by guaranteeing that Vaughan-Bassett would deliver orders within a week, his own company’s credit and delivery departments couldn’t cope.
Globalization takes the blame for many ills these days. But the implosion that Ms. Macy chronicles owes less to import competition than to executives in a sheltered industry who failed to keep up with a changing world.

For the full, largely negative, review, see:
MARC LEVINSON. “Made in America; It’s not easy to copyright a furniture design–and somebody will always come along and make it for less.” The Wall Street Journal (Sat., July 19, 2014): C5-C6.
(Note: ellipsis added.)
(Note: the online version of the review has the date July 18, 2014, and has the title “Book Review: ‘Factory Man’ by Beth Macy; It’s not easy to copyright a furniture design–and somebody will always come along and make it for less.”)

The book being mainly panned is:
Macy, Beth. Factory Man: How One Furniture Maker Battled Offshoring, Stayed Local – and Helped Save an American Town. New York: Little, Brown and Company, 2014.

HR Regulations and Fear of Lawsuits Keep Managers from Firing Workers Who Do Not Work

(p. 1B) The biggest problem in your workplace has a name. His name is Jeff. . . .
Jeff sits two cubicles down from us, or three, or four. His real name may be John, Juan or Joan. He gets to the widget factory late, he leaves early and always mucks up his part of any group project. He complains, loudly, about the smallest things, and when you bring doughnuts for your birthday he probably takes three and then talks with his mouth full, too.
. . .
(p. 2B) . . . , morale suffers greatly when most of a company’s employees perceive that their supervisor is failing to deal with their low-performing co-worker, month after month, year after year.
For this, Hoogeveen blames a corporate culture that is so concerned about HR regulations, and the often-imagined threat of litigation, that bosses often fail to take into account how the trouble employee affects the larger climate.
. . .
. . . if Jeff doesn’t improve, he needs to be fired. This is perhaps the worst part of a boss’s job, Hoogeveen thinks. His eyes mist as he recalls firing an employee whom he liked, but who was simply a bad fit at QLI.
It’s human nature to avoid this conflict, to maintain the status quo and let Jeff be, he says. That’s what can and does happen at most Omaha companies.
But it’s bad for the employees, and it’s bad for business.
“A lot of this stuff is incredibly easy to understand,” says Omaha’s workplace mechanic [Kim Hoogeveen]. “It’s incredibly difficult to live.”

For the full story, see:
Hansen, Matthew. “Workplace Guru: Don’t Let Problem Worker Slide.” Omaha World-Herald (Mon., July 21, 2014): 1B-2B.
(Note: ellipses, and bracketed name, added.)
(Note: the online version of the article had the title “Hansen: Don’t let Jeff — the problem worker — slide, workplace guru says.”)

“Ego Depletion” from Distractions Reduces Ability to Perform Cognitively Demanding Tasks

(p. B1) One study from Microsoft indicated that programmers who were interrupted by an incoming email lost 10 minutes every time they switched from their original task, on top of however long it took them to answer the email. Earlier studies suggest that workers lose (p. B2) as much as 40% of their productive time when they are regularly interrupted.
. . .
. . . , people underestimate the cost of . . . distractions, partly because we underestimate the effects of what psychologists call “ego depletion.” The idea is that we have only so much willpower. Some neuroscientists believe the brain literally runs out of its fuel, glucose, when we have to perform cognitively demanding tasks. But exercising the self control required to not answer that incoming email is also cognitively demanding.

For the full story, see:
CHRISTOPHER MIMS. “KEYWORDS; The Distraction-Industrial Complex.” The Wall Street Journal (Mon., June 30, 2014): B1-B2.
(Note: ellipses added.)
(Note: the online version of the story has the date June 29, 2014, and has the title “KEYWORDS; Say No to the Distraction-Industrial Complex.”)

One of the early articles in the substantial literature on ego depletion, is:
Baumeister, Roy F., Ellen Bratslavsky, Mark Muraven, and Dianne M. Tice. “Ego Depletion: Is the Active Self a Limited Resource?” Journal of Personality and Social Psychology 74, no. 5 (May 1998): 1252-65.

How Sega Came Out of Nowhere to Leapfrog Near-Monopolist Nintendo

Source of book image: http://images.eurogamer.net/2014/usgamer/original.jpg/EG11/resize/958x-1/format/jpg

(p. C10) “Console Wars” tells how Sega, an unremarkable Japanese manufacturer of games played in arcades, came out of nowhere to challenge Nintendo for dominance of the videogame world in the first half of the 1990s. Nintendo, which had revived the stagnant home videogame category a few years earlier, had something close to a monopoly in 1990 and behaved accordingly, dictating terms to game developers and treating retailers as peons. Sega, in Mr. Harris’s telling, was a disruptive force in a highly concentrated market, introducing more advanced gaming technology, toppling Nintendo from its perch and becoming the largest seller of home videogame hardware in the U.S. by late 1993.

Mr. Harris’s hero is a former Mattel executive named Tom Kalinske, who became president of Sega of America, then a small subsidiary, in 1990. Mr. Kalinske assembled a team of crack marketers who would not have gone near Sega but for his reputation and persuasiveness. Within a year and a half, according to Mr. Harris, Mr. Kalinske’s leadership, along with a new gaming system called Genesis and a marketing assist from a mascot named Sonic the Hedgehog, made Sega the U.S. market leader in videogames.
And then, after only three years at the top, Sega fell from its pedestal. Sega’s management in Japan, suffering mightily from not-invented-here syndrome, rejected Mr. Kalinske’s proposals to collaborate with Sony and Silicon Graphics on new gaming systems. Instead, over his objections, Sega pushed out its ill-conceived Saturn game console in 1995. While Saturn flopped, Sony struck gold with its PlayStation; Silicon Graphics sold its chip with amazing graphics capabilities to Nintendo; and the game, so to speak, was over.
. . .
The author admits he has taken liberties: “I have re-created the scenes in this book using the information uncovered from my interviews, facts gathered from supporting documents, and my best judgment as to what version most closely fits the historical record,” he writes. The result is more a 558-page screenplay than a credible work of nonfiction.

For the full review, see:
MARC LEVINSON. “Sonic Boom; How a no-name company took on Nintendo, tied its fate to a hyperactive hedgehog, and–briefly–won.” The Wall Street Journal (Sat., May 24, 2014): C10.
(Note: ellipsis added.)
(Note: the online version of the review has the date May 23, 2014, an has the title “Book Review: ‘Console Wars’ by Blake J. Harris; How a no-name company took on Nintendo, tied its fate to a hyperactive hedgehog, and–briefly–won.”)

The book under review is:
J., Harris Blake. Console Wars: Sega, Nintendo, and the Battle That Defined a Generation. New York: HarperCollins Publishers, 2014.