Yuck: The Economy

People are starting to understand that this recession is more than just a normal cyclical depression. It's the result of fundamental overspending by both governments, business, and consumers.

Roger Altman, President Clinton's deputy secretary of the Treasury, had this to say in ysterday's Wall Street Journal.

A speedy recovery is highly unlikely given the financial conditions of American households, whose spending represents 70% of GDP. Household net worth has fallen more than 20% since its mid-2007 peak.

Everyone was hoping for a quick return to the go-go economy (Figure 1). In reality, we are going to be stuck in a malaise (Figure 2) for a while until we figure out a growth industry that can pull the economy up. (Hint, it is not housing).


We (the United States) need to figure out what the rest of the world needs and then be the best in the world at providing it. Much easier said than done: however the answer is definitely, most absolutely positively, not running up a huge debt that will weigh as anchor in the future. Have we learned nothing from the American car industry?

Another Wegman's Innovation

My lover affair with the grocery chain Wegmans is well documented. They "get it". As a result of "getting it", they make lots of money.


One way that Wegman's gets it is at the deli counter. For their high volume items they pre-slice the meet. So when you order the turkey, ham, or roast beef you receive it in a fraction of the time it takes other deli counters to find the product, unwrap it, wait for a slicer, and then slice.

People hate waiting, so why make them wait. Why don't other grocers understand this?

Just Do It

Much of the conversation on Innovation focuses on new schemes and techniques. There is always something bright and new and flashy. Rather, much of the success due to Innovation is due to hard work, which is much less glamorous than the latest fad, but will yield much greater results.

The real trick for organizations is to decrease the amount of organizational friction. Get people to agree and then flawlessly execute is the secret; but by God is it hard to do.

Whale Facts

Things that quite possibly only interest me....

Before, You Just Had To Be Breathing
Now, banks now want 20% down for a mortgage.1

That Aint' Good
Businesses cut total wages at a 6.2% annual rate in the first quarter [of 2009]. Federal, state and local governments increased spending on wages by 6.1%, offsetting some of the decline.2

They May Be Growing But At Least They Work Hard
In New York, the Governor may use the state police to get the legislature to meet .3
In South Carolina, the Governor disappeared.4

Taxing The Rich Don't Work
In California, residents with incomes over $500,000 make up less than 2% of tax returns but generate nearly 40% of the state's personal income tax revenue. Income tax accounts for 52.9% of total revenue. The state has a $40billion budget gap.5

Notes:
1. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiiT.sNeq2YQ
2. http://www.usatoday.com/money/economy/employment/2009-06-11-workweek_N.htm
3. http://wcbstv.com/topstories/senate.paterson.albany.2.1053517.html
4. http://www.thestate.com/local/story/836552.html
5. http://www.mercurynews.com/breakingnews/ci_12579720

It's A Flat Organization

As seen in the ABC Mart.

Innovation Is Slow

Recently I wrote that Innovation typically doesn't happen with a bang. Rather it slowly grows and you don't realize it's effects until something happens to make it go away and then you realize how much you miss it.

Case in point is my computer malfunction earlier this week. The monitor would not display, instead offering the blinking blue light of death. (Irony, by the way, is having all of the support documentation for the monitor on a disk which you can't read because the monitor is broken).

All of a sudden there was no way to pay the bills, easily confirm the optometrist appointment, check the weather, or shop for the new monitor.

The computer has evolved from novelty to central life utility and it didn't do it with an big announcement. Slowly, over the years, I have been making more and more of my life's content digital. I just didn't realize it until I couldn't get it anymore.

Solve Your Own Problems

You can't make this stuff up.

The details of what happened on USAirways flight 1549 as it landed on the Hudson river have begun to emerge.

Of particular interest was this exchange, reported by the NYTimes, between Captain Chelsey Sullenburger and first officer Keffery Skiles after attempts to restart the engines didn't work.1

Captain Sullenburger: Any ideas?

First Office Skiles: Actually not.

More often than not, when you are on the front line, you need to solve your own problems.

(Yee Gods though. Can you imagine sitting there, in a life threatening situation looking for some help, and you get back an "actually not"? Throw me a bone Mr. Skiles.)

Notes:
1. http://www.nytimes.com/2009/06/10/nyregion/10usair.html?scp=1&sq=flight%20in%20hudson&st=cse