The Global Human Capital Journal

Knowledge Economy Unfolds via All Things Digital-Social—Wearing Passion and Personality on Your Sleeve

Discerning Web 2.0 from Web 1.0—Ron May Gets Comeuppance as Happy and Successful

Web 2.0 entrepreneurs, financiers and professional services folk descended on Loyola University Chicago's Lewis Hall 29 May 2008 for "Tech Conference," TechCocktail's first ever day-long educational event. Founders Frank Gruber and Eric Olson served an effervescent yet heady elixir of heart-to-heart war stories, lessons learned and strategies by entrepreneurs, venture capitalists, lawyers, accountants and an executive coach.

Since attending TechCocktail 1 in July 2006, I have promoted the periodic TechCocktail "meetups" to everyone who will listen as the place to learn about and connect with Web 2.0 players and technology in Chicago (elsewhere now, too). Frank and Eric have created one of the most worthwhile groups and communities in the city and were recognized in the ITA's Citylights this year. Their first conference was both high value and quintessentially Web 2.0: speakers were open about what had worked and what hadn't. The program was well balanced, organized and entertaining. There were considerable lessons for Web 2.0 entrepreneurs and their providers to take away.

Real-time Case Study Holds Lessons for G7 Knowledge Economy Transition—"Courage" to the Rats—A New French Realism?

Illinois leaders were addressed by Her Excellency Christine Lagarde, Economy, Industry and Employment Minister, Republic of France at the special luncheon held in her honor by the Executives' Club of Chicago at the Westin on 23 May 2008. Attending were Chicago Mayor Richard M. and Maggie Daley, a French delegation that included the Ambassador of France to the U.S. Pierre Vimont, the Head of Cabinet Christian Dufour, David Appia, Minister Counselor for Economic and Commercial Affairs, and numerous executives of Chicago Fortune 500 firms.

If one were not listening attentively and willing to question stereotypes, it would have been too easy miss this intriguing story. However, as in all things "2.0," profound change manifests slowly at first, and I detected a glimmer of disruption in France's status quo. Having lived in West Berlin surrounded by the concrete reality of a wall that subsequently, unbelievably, came down, I ask myself, "What if France were to vanquish some of the sacred cows and become, gasp, pragmatic and entrepreneurial?" Lagarde's message was precisely that, and she delivered it with the aplomb that reflected extensive business and policy success at the boardroom table.

Process Excellence Can Inject New Vitality into Ailing Manufacturers

Picture this: you are the CEO of a venerable manufacturer that has been besieged by price pressure, increased imports and high capital costs. Revenue has been barely edging up, and profits have been negative three of the last five years. You have had to lay off a significant portion of manufacturing personnel, many of whom had been with you more than a generation. Your ship is still taking on water despite best efforts, and you do not know where to turn.

This was precisely the situation of several U.S. firms that took the unusual route of selling themselves to Indian firms that turned the companies around very quickly by applying sophisticated process and management expertise. In many cases, local employment increased because the companies became much more competitive. Here are two examples:

Enterprise-class Social Networking Is Closer than You Think—Resetting the Adoption Clocks

Shades of Web 3.0—The Googlization of Knowledge Management

Tuesday IBM announced a new services practice, "Enterprise Adaptability" services, which aims to help global companies realize a quantum leap in workforce agility and collaboration by facilitating their adoption of social networks and Web 2.0. As predicted in the Year in Review—2007, social networks and Web 2.0 are being embraced in the enterprise B2B arena this year, and this announcement shows that adoption is right on ahead of schedule. Enterprise 2.0 is reaching the mainstream, and companies that do not aggressively adopt enterprise 2.0 will experience serious competitive threats within three years.

IBM's announcement validates enterprise social networking, but more significant is their rationale for launching the practice: their clients are struggling with adjusting to the Knowledge Economy, globalization and decreasing margins, and Enterprise Adaptability prescribes collaboration and innovation to cure legendary agility gaps. As explained below, Enterprise Adaptability smells like breakthrough, although it's barely out of the oven. To look behind the curtain, I caught up with Scott Smith, a lead Partner in IBM's Human Capital Management practice as well as Christa Degnan Manning, Research Director, AMR Research and Derek Smith, Research Director, Kennedy Information. After briefing you on the Enterprise Adaptability practice, I will dive deeper into its market significance and consider prospects for success.

"Yes," Says Team of Healthcare Experts, Employer CEOs and Patient Representative at the Executives' Club of Chicago, "But You Must Change Your Ways"

Honestly Assessing Quality—Engaging Consumer Empowerment—Trading in the Ferrari for a Chevy

The Executives' Club of Chicago convened its healthcare reform summit at the Hilton Chicago on 20 February 2008, drawing on diverse expertise. Ian Morrison, Ph.D., healthcare futurist, gave the keynote and moderated two panels: first, the healthcare expertise panel with Dean Harrison, CEO Northwestern Memorial Healthcare; William Novelli, CEO AARP; Scott P. Serota, CEO BlueCross BlueShield Association; and second, the business executive panel with Andrew M. Appel, Chairman AON Consulting; John A. Edwardson, CEO, CDW; John B. Menzer, Vice Chairman and Administrative Officer, Wal-Mart Stores. Robert L. Parkinson, CEO, Baxter Healthcare gave an insightful point of view on recommended actions to close the event.

There was broad agreement that the U.S. healthcare system was broken, and speakers offered excellent insights and perspectives about how to fix the system. However, what they didn't say was as interesting as what they did, and I will address two key issues in Analysis and Conclusions: the pervasive lack of trust among all parties and the emerging consumer empowerment trend: what do Web 2.0-enabled consumers have to bring to the party?

New Global Economic Architecture Presages Economic Realignment—Thinking Beyond the Obvious to Tap Emerging Opportunities

Illinois leaders were addressed by His Excellency Shri Kamal Nath, Minister of Commerce and Industry, Republic of India. True to form, His Excellency struck chords of transformation, partnership, common interests and harmony at the lunch held in his honor at the University Club on 19 February 2008. Attending were Chicago Mayor Richard M. Daley, Mr. Rajinder Bedi, Managing Director of the Illinois Office of Trade and Investment, The Honorable Susan Schwab, U.S. Trade Representative, Craig S. Donohue, Chief Executive Officer, CME Group and John Estey, President & Chief Executive Officer, SC Electric Company.

Reading between the lines, the U.S. and India stand at a significant turning point: India's impressive economic growth is a significant element of the ongoing redistribution of global economic power—which holds excellent opportunities for U.S. businesses and workers that are looking for it.

U.S. at Turning Point with Global Economy in the Balance—A Lack of Courage?

James W. Owens, Chairman & Chief Executive Officer of Caterpillar Inc., beseeched U.S. business and government leaders to find the courage to save free trade. The speaker at the Executives' Club of Chicago's Global Leaders Series, Owens addressed a packed house at the Hilton Chicago on 16 October 2007. His speech was immediately followed by the Club's Technology Conference at which CIOs advised their peers on the emerging role of the CIO in the "networked economy 2.0."

A Ph.D. economist with extensive global management experience, Owens made a very convincing argument that the U.S. and the global economy are at a turning point. It is time for the U.S. to lead by example to assure the continuance of the free trade juggernaut that has produced so much wealth in the world. If it fails, the world stands before the prospect of sharply curtailed trade.

Following a summary of his remarks, I will offer conclusions and analysis of related market developments. Although he limited his remarks to business leadership, I will also argue that the U.S.'s lack of resolve and leadership is multidimensional, notably with respect to the environment. Moreover, economic and social forces are going to confront the definition of the sovereignty of the nation state due to the collective destiny of all nations due to trade and the environment. In other words, Owens' remarks may be far more applicable than he suggested.