Bob Parsons 16 Rules:

1. Get and stay out of your comfort zone.
2. Never give up.
3. When you are ready to quit, you’re closer than you think.
4. Accept the worst possible outcome.
5. Focus on what you want to have happen.
6. Take things a day at a time.
7. Always be moving forward.
8. Be quick to decide.
9. Measure everything of significance.
10. Anything that is not managed will deteriorate.
11. Pay attention to your competitors, but pay more attention to what you’re doing.
12. Never let anybody push you around.
13. Never expect life to be fair.
14. Solve your own problems.
15. Don’t take yourself too seriously.
16. There’s always a reason to smile.

Read the details of each on Bob Parsons website at http://bp.bobparsons.com/gdshop/bp/gear.asp?ci=8283

Who uses Twitter?  That is a question with a never-ending answer, but Jonathan Kash (@time2simplify) of Fluent Simplicity initially created the Twitter Brand Index to begin to answer this question.  The Twitter Brand Index has since been moved to its own website, the Social Brand Index.  The Social Brand Index organizes all of the brands under the following top-level categories:

• Business
• Education
• Entertainment
• Executives & Notable Individuals
• For Consumers
• Government & Politics
• Media
• Non-Profit Organizations
• Service Providers
• Social Properties
• Technology
• Travel

 And, as expected, each category is further delineated by sub-categories.  For example, the Technology category is further categorized into

• Business News
• Certifications
• Enterprise Organizations
• Game Developers
• Mobile Applications
• Online Service Providers
• Open Source
• Platforms
• SaaS
• Search
• Software
• Tech Support
• Telecom/VOIP

I can only imagine the amount of time and research that went into compiling all of this great information. One thing that this evolving directory conveys to me is variety and diversity of businesses that is trying new and interesting ways to engage consumers, and doing it in a public forum that can be studied and picked apart by anyone to gauge its effectiveness.

It is extremely interesting to see how companies like CNN, NPR, AT&T, Ford, NY Times, Southwest Airline, and MGM are using Twitter as a new outlet.

It never ceases to amaze me of the creative ways that Twitter is being used.  If you need some inspiration, Chris Brogan has put together a list of 50 ways to use Twitter.  Chris offers some good insight on getting you started using Twitter effectively for business.  He gives steps on getting started, ideas on what to Tweet about, useful tips and tools to use Twitter more effectively, and how to handle Twitter negatives and turn them into positives.

 Of all the companies that I have come across on Twitter, one company stands at the forefront in being the epitome of how to leverage this popular service.  That company is Zappos. The company uses Twitter to not only build customer relationships and give you a glimpse into the service-oriented culture, but also to foster relationships between employees within Zappos.

Zappos has integrated Twitter into their website and it is an integral part of company communication from the CEO, Tony Hsieh (@Zappos), on down the chain.  What is interesting is that the company also offers classes on how to use Twitter, and I think that is awesome.   

Want to find out what all 444 (as of 9/2/2008) employees using Twitter at Zappos is doing?  Just point your browser at http://twitter.zappos.com/employee_tweets to find out in real-time what is happening on their public Twitter time line.

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Twitter icon from AODdesign.com

The book has been out for about a year, but I finally got around to reading Our Iceberg Is Melting by John Kotter-and checking it off of my reading list. If you have an hour to spare, this book is small and can easily be read over a lunch break or before going to bed. I found the story very entertaining, easy to read, and quite enjoyable.

Our Iceberg Is Melting is a fable about a colony of emperor penguins that has lived on an ice berg in Antartica for as long as they can remember. Fred, the main character, is very curious and has a keen sense of observation and notices over a period of time that the only home that they know could be in danger of breaking apart. The story chronicles Fred’s challenges as he tries to convey his information initially to the penguin council and then to the entire colony. Fred runs into roadblock along the way, but logically navigates them, ultimately convincing the colony to change its way of thinking, resulting in them changing their way of life for the better by never being complacent and always being prepared to adapt to new situations. I highly recommend this quick read by Kotter. I have included the eight step of change below…

The Eight Step Process of Successful Change:

Set the Stage
1. Create a Sense of Urgency
Help others see the need for the change and the importance of acting immediately.

2. Pull Together the Guiding Team
Make sure there is a powerful group guiding the change-one with leadership skills, credibility, communications ability, authority, analytical skills, and a sense of urgency.

Decide What to Do
3. Develop the Change Vision and Strategy.

Make it Happen
4. Communicate for Understanding and Buy In.
Make sure as many others as possible understand and accept the vision and the strategy.

5. Empower Others to Act
Remove as many barriers as possible so that those who want to make the vision a reality can do so.

6. Produce Short-Term Wins.
Create some visible, unambiguous successes as soon as possible.

7. Don’t Let Up.
Press harder and faster after the first successes. Be relentless with initiating change after change until the vision is a reality.

Make it Stick
8. Create a New Culture.

Hold on to the new ways of behaving, and make sure they succeed, until they become strong enough to replace old traditions.

Problem-based Learning Model:

1. Describe the situation
2. Frame the right problem
3. Describe end state and goals
4. Identify alternatives
5. Evaluate alternatives
6. Identify and assess risks
7. Make the decision
8. Develop and implement the solution
9. Evaluate results

To initiate the process you deposit $50 dollars, give a description of what the website will do, specify how many letters or words you would like in the domain, any particular keywords, and whether there can be any dashes or not, ect.

Once they get this information, they will give this info to their small army of domain namers and you will immediately start getting emails with domain name suggestions until you come across one that you want to register. If you do not get any names that you like, simply request your refund.

Finding good domain names is becoming harder and harder to do these days, but this service seems to have eliminated that difficulty. They have quite a few domain names with brief descriptions of the website that they list so that you can get an idea of the kind of quality you can expect. I think I will give them a try.

The goal of every business is to make a profit, and if a business is not profitable as a whole or in certain areas, to identify opportunities to achieve profitability. Global Mobile is such a business with a particular mobile phone rate plan that has been slowly declining over the past couple of months and caught the concern of management.

I will identify an under performing rate plan, point out factors causing its under performance, create a price elasticity of demand for a range of possible rate plan prices, analyze the table results, and finally review what would happen if Global Mobile did not change the price of the rate plan at all.

Global Mobile is considering a decision to either increase or decrease the price of their 200 minute rate plan in order to increase the company’s revenue. In order to determine whether to increase or decrease the price of the rate plan, the price elasticity of demand will have to be consulted. First, let’s look at the current situation.

Global Mobile’s 200 minute plan has done well to increase the number of monthly subscribers with its entry-level nation wide calling plan for the cost-conscious. To date, it has been one of the most the popular plans. The 200 minute plan costs $29.99 a month and includes free nation-wide calling and the standard features that are usually expected with similar plans. Sales have gradually been dropping over the last couple of months despite the various advertising efforts. The Global Mobile marketing team has realized that other competitors such as Horizen, Z-mobile, and Singularity have come out with almost similar entry-level mobile phone plans to compete with its 200 minute plan. The price of the other closely related alternatives are taking away subscribers from Global Mobile. Campbell McConnell and Stanley Brue (2004), in their book titled Economics: Principles, Problems and Policies, confirm this behavior by stating the price of related goods, one of the determinants of demand, will change the demand schedule for an item. Global Mobile has to do something to combat this situation.

By closely examining various factors of the 200 minute rate plan situation, Global Mobile can likely turn this problem into an opportunity. The price elasticity of demand tool will be used to evaluate the various pricing schedule to determine if the price should be lowered to entice more subscribers, or to raise the price of the rate plan and add more features to make it a more attractive buy.

The price elasticity of demand is measured by “the responsiveness (or sensitivity) of consumers to a price change,” according to Campbell McConnell and Stanley Brue (2004, p.356). For example, restaurant meals are considered relatively elastic because consumers are extremely responsive to price changes, while a product like salt would be deemed inelastic due to small changes in the amounts purchased.

Global Mobile wants to see what the impact on revenue will be if the $29.99, 200 minute plan is either increased or decreased a few dollars. The law of demand asserts that as prices fall, the quantity demanded increases, if all other things are equal, which will be the basis for the projected quantities in the price elasticity of demand table.

The national monthly revenue for the $29.99 rate plan is roughly $689,000.00, with around twenty one thousand units sold each month. To find the price elasticity of demand for the 200 minute rate plan, the coefficient(Ed) for the midpoint formula will use the averages of two rate plan prices and two quantities as a reference point.

The formula is

change in quantity / (sum of quantities/2)
Ed = ______________________________
change in price / (sum of prices/2)

The price ranges of $31.99 to $24.99 will be evaluated to see what the best price is. Using the above formula, the quantity projections, elasticity coefficient, and total revenue can be calculated as shown in Table 1.

(Download Elasticy Spreadsheet used in Table 1) 

The table shows that $29.99 is in the elastic price range and should be adjusted to affect revenue. If the price is increased to $30.99, an elastic price because of the 1.36 coefficient, there will be fewer consumers buying the higher rate plan, thus reducing revenue by $8,000.00 to $681,780. It does not make sense for further price increases as this will increase the elasticity coefficient even higher and reduce revenue even more. Now let’s look at price reductions. Decreasing he price to $28.99 increases demand, which increases sales. The elasticity coefficient of the new price is 1.25, which is better then the last price range since revenue is up by around $6,000.00 resulting in $695,760.00, but could still be better since the coefficient that is desired is 1. Jumping ahead a couple of dollars, table 1 shows that the price range between $26.99 and $25.99 is a unit elastic price that will bring in revenue of about $701,730.00, almost $12,000.00 more then the $29.99 price. Global Mobile will choose the $26.99 and $25.99 price range for its 200 minute rate plan.

A less likely alternative option would be to not change the rate plan price at all. What affects would this have? Not changing the price of the 200 minute rate plan would likely cause the downward trend in revenues to continue as consumer purchase the less expensive related plans of competitors. Not changing the price would cause Global Mobile to miss out on customer who upgrade from the entry level plans to ones that have more minutes. For example, once these new customers have used their phones for a month or two, they would have a better idea of which plans would be more appropriate to their calling needs. A number of customers may feel that the 200 minute plan is insufficient for their calling habits and upgrade to a higher minute plan, resulting in more revenue for Global Mobile.

In summary, I have identified the under performing 200 minute rate plan, pointed out similar plans from competitors that were causing its under performance, created a price elasticity of demand table for the $31.99 to $24.99 price range, analyzed the table results and identified that $26.99 and $25.99 is a unit elastic price range, and finally reviewed what would happen if Global Mobile did not take any action in changing the price.

Global Mobile has used the economic tools available to identify a price point with its 200 minute rate plan that is both an enticing bargain for its entry level customers and a revenue booster.

Reference

McConnell, C., Brue, S. (2004) Economics: Principles, Problems and Policies (16th ed.). New York: McGraw-Hill Companies.

Mission Statement
Being one of the dominant players in the search engine arena, their website states that “Google’s mission is to organize the world’s information and make it universally accessible and useful.”

A previous employer of mine, Nextel Partners mission is “to provide high quality, integrated wireless service that maximizes customer and investor value.” To achieve this mission, the company heavily relies on five guiding principles:
• Strive for 100% partner satisfaction.
• Strive for 100% customer satisfaction.
• Achieve targeted revenue growth with a low cost structure.
• Achieve win-win results through the power of teamwork.
• Work smart while remaining humble.

The last example is from the fictional movie Star Trek. At the beginning of each episode, Captain Kirk told viewers the five year mission of the starship Enterprise: “To explore strange new worlds. To seek out new life and new civilizations. To boldly go where no man has gone before.”

As you can see, vision and mission statements are important to help determine your long-range objective and the actions you will take to accomplish the objectives.

Though many companies could not ride out the recession till its end, how did the companies that did survive make it through those rough times? Let’s look at some of the best practices that helped companies survive during post 9/11.

One best practice during rough economic times is to continually improve processes to work more efficiently. In 1994, Goodrich, a leading global supplier of systems and services to the aerospace and defense industry, implemented a program called Lean Manufacturing. According to their website, Lean Manufacturing “is a systematic and structured approach to the elimination of waste within the production system; it is an unwavering focus on the Value Stream and the constant pursuit of the Least Waste Way of operating.” Team members from all levels of the organization get together and provide input for a Kaizen (a Japanese method for continuous improvement) meeting where everyone critically analyzes a process and eliminates anything that would inhibit productivity. They also try to identify areas of opportunity where the can improve quality or save money. A few companies that I worked for had similar programs. Ingram Micro had the Partners in Excellence (PIE) philosophy, Nextel Partners practiced the Good to Great concepts from Jim Collins, and finally HCA Patient Account Services taught the Gung Ho methodology by Ken Blanchard and Sheldon Bowles. The one common theme that is stressed in these types of programs is teamwork, creative problem solving, and empowerment to help the organizations react quickly in changing economic times.

Another obvious best practice during the post 9/11 economic downturn is to eliminate unnecessary costs. For example, when I worked at Macromedia before the recession that caused the dot com bubble to burst, our fifty member engineering team had free weekly 20 minute massages, free cappuccino, soda, and juice, subsidized parking and daycare, and many other benefits. When the recession hit, all of the things that we enjoyed quickly disappeared and nothing was free anymore. Even though I was disappointed we no longer had these items, I did understand from a business perspective that the company would save quite a bit of money. Macromedia was trying to cut anything that was not essential to company operations and productivity to ride the recession. Unfortunately, eliminating all unnecessary items does not always satisfy the goals and objectives of an organization and more drastic measures need to be taken. The practice to eliminate wasteful spending can be seen in all levels of society, from your personal finances to the small business to the major corporations and the federal government. It ultimately boils down to common sense spending.

Lastly, after a company has eliminated all unnecessary costs and still needs to cut a lot more, layoffs help a company to both quickly and directly affect their bottom line, and it is a core cost control technique for many organizations. For many companies, labor is usually the most significant and easily controlled cost. There are other options that can be implemented prior to layoffs, such as controlling the hiring frequency or choosing not to hire at all. Also, replacements might not be hired when an employee leaves. Work hours can be reduced and overtime denied, or there might be no raises or bonuses. If these alternatives fail to meet the organizational objectives, layoffs are usually the next viable option to help a company get back on its feet financially. Of the three companies that I have worked for in the last decade, all of them have had layoffs to reach certain financial goals.

Some of the best practices that were reviewed include continuous improvement, eliminating costs, and layoffs. These practices are easily applied to the airline industry. According to Fiscal Notes for December 2001, many airlines planned to layoffs to stay afloat during this time of economic turmoil. American Airlines has stated that it planed to layoff 20,000 employees, while Continental prepared to shave 12,000. The statements of these two companies solidify that layoff are an effective way to save money.

Supporting the practice of eliminating costs, the airlines trimmed back on many of its services. Some of these cutbacks include reduced flight schedules, no in-flight meals, discount coach fairs, and greatly minimized their advertising budgets. And as mentioned earlier, these are just a few examples of common sense cost-cutting techniques in times of economic downturn.

Reference:
Value Based Management
http://www.valuebasedmanagement.net/methods_kaizen.html

Goodrich
http://www.aerostructures.goodrich.com/html/lean.asp

Fiscal Notes
http://www.window.state.tx.us/comptrol/fnotes/fn0112/slump.html

If you want to deter, detect, or defend against identity theft, you may want to visit the Federal Trade Commission’s website. The FTC proclaims to be the one-stop-shop for identity theft information. Visit the FTC’s ID Theft website.