Thursday, October 30, 2008

I Asked the Question That Really Got Them Going

Last night I went to a panel discussion on global sourcing, rather, outsourcing and offshoring, featuring a lead guy from IBM and a guy from Citi who used to work for IBM.

It was interesting. They both knew their topics and were able to speak to the pitfalls of outsourcing, as well as the benefits. When asked about political cries for punitive taxation of outsourcing, they pointed out that in some cases operations are outsourced or offshored within the US as part of a larger follow-the-sun service strategy, and that often a company that outsources will create new jobs in-country.

My company outsources, and the company we outsource to turns around and subcontracts part of the service level agreement to another company. It makes communication difficult. I asked about such an arrangement. Their ears perked up and they held forth for at least twenty minutes.

Basically, the answer is to plan ahead of time. Many companies turn to outsourcing because of the savings appeal, and they want to move as quickly as possible to get the labor arbitrage most often associated with outsourcing. As the man from IBM pointed out, however, if the processes being outsourced are broken, outsourcing won't fix them, and can in fact make fixing them more difficult.

It's an interesting topic, it's where my head is right now, but I'm not sure it's the career path I want. One thing is for sure though - there's a lot of work, and a lot of money to be made, in the outsourcing and offshoring market.
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Friday, October 24, 2008

Immelt, Bartiromo

This morning I'm attending a talk with Jeff Immelt, chairman of GE, hosted by Maria Bartiromo.

I'm not sure what I'm supposed to get from this. Networking was promised, and I met some fellow students, as well as a GE recruiter.

I was standing next to a JD/MBA candidate who asked most of the questions. *Sigh* yes in my heart of hearts, I want to be a JD/MBA candidate, but as intense as I can be, this guy was even more intense.

There's a lot of talk at NYU about opportunity, and certainly, it's plain to see that the MBA world can lead into all kinds of directions I could only imagine before. At the same time, one prof has referred to Stern as a school with an inferiority complex (at least wrt Columbia and Wharton).

So, truly, I don't know what to make of this. What will my $80K+ education buy me? I have three years to figure it out.
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Sunday, October 19, 2008

Management Theory

Today is a day of heavy reading for my management class. While the class doesn't meet until Thursday, this weekend is the only time I'll have for it, so I'm reading 40+ pages of theory, as well as 30+ pages of case history.

What's refreshing to read is that some of the assumptions about management that I have had are misconceptions. Chiefly, that all institutions are hierarchical, inherently patriarchal, and require being a hard-charging, assertive, bossy jerk. Maybe that comes from being an army brat, or an eighties child; in general that has not been my experience, but then I've always been fortunate enough to be picky about my work environment.

In the case study, the company being scrutinized is a law firm with roots in Philadelphia's Quaker community. The study attributes to this heritage a culture of consensus-based decision-making, collegiality, and thrift. It reminds me of a time, almost ten years ago, when I was dissatisfied with my work environment and changed jobs, ultimately arriving in a small shop where the technicians were collegial and shared knowledge. I would put in a vote for organizations founded on the internal sharing of knowledge.

In the general course reading, there is one chapter that basically says American management theories rarely integrate with the cultures of other nations, especially non-Western nations. The author ascribes to US management theory a focus on assertiveness, hierarchy, and a labor market, where essentially workers are contracting to provide their services. I've always had a quibble with that idea - where's the esprit d'corps? - though I've accepted it as the norm and can see, in hindsight, how it influenced some of my thoughts about my own employment in the past few years.

This is a very mechanical view of the world with no way of accounting for relationships. Perhaps I might continue working for someone even though I could make money working for someone else, based solely on the work relationship. Or, perhaps I might not opt to work for a company that pays more because I know their working conditions are not as nice. Granted, maturity and years of working in NYC have made me a bit jaded on the benefits of always working for the "best fit - I've discovered I will happily put up with circumstances I once imagined to be unbearable - but still, the principle remains - relationships and company culture matter.

I'm interested in today's study materials more for how it accounts for gender. It is generally accepted that women are not as assertive as men (not true, based on some women I've known). I think it's more apt to say that women are assertive in different ways; we compete differently. These different management styles, ascribed mostly to national or geographic location, can be described in gender terms, or more aptly, in terms of regular human diversity.
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Friday, October 17, 2008

Southwest Fails?

No, they didn't. This article caught my eye bc we recently had to study Southwest for class, and the fuel hedging decision was one of the practices that we examined closely.

Southwest is an interesting airline; their practices are summarized nicely in the fourth-from-last paragraph ("The emphasis on . . ."). Fuel hedging isn't a bad practice; Southwest was just caught in a volatile market. Their previous savings based on fuel hedging surpass their loss this quarter.

Thus, Southwest taking a loss this quarter based on a fuel expense is hardly cause for alarm. Their overall business model is sound, and they are doing pretty well considering what's going on in the rest of the marker.

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Thursday, October 16, 2008

A Big Day Indeed

I just reviewed the syllabus for one of my classes, and noticed for the first time that I have a midterm on election day.
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Wednesday, October 15, 2008

Paulson's Power

I find this paragraph from an article on The Big Money to be very telling:

"Mind you, little of Obama's and McCain's posturing actually matters. As evidenced by Obama's newest offerings, asking Congress to affect these changes is no easy task. And trying to force Paulson's hand doesn't necessarily work, either, since he's running an invulnerable monolith. It can't be repeated enough: Paulson is currently accountable to a lame-duck President Bush, two not-in-power presidential candidates, and a not-in-session Congress. He is the only person in this network who actually holds any power."
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Sunday, October 12, 2008

Amazon, eBay

There is a very interesting article on the competition between Amazon and eBay. It caught my eye in part because I recently had to study eBay c. 1998 for class.

There's a bit in there about long-term planning, and former eBay CEO Meg Whitman is now on John McCain's campaign advisory staff, so I suppose some might read the piece as a partial indictment of Republican political choices. I don't think i goes that far, but some might.

In any case, there is a fair amount of criticism of eBay's strategy, a strategy that even today echoes the case I had to read which was rather dated. Some of their acquisitions were bad fits, and there is an ongoing clash with their original culture, a culture based on the facilitation of peer to peer trading rather than large-scaele e-commerce.
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Friday, October 10, 2008

Shot Down

Last week my team was voted off the island in our Leadership and Management class. We were shocked.

The instructor in that class has instituted a competitive presentation ladder. Each team presents a presentation on the case studied for that week, and the class votes on who is the most effective. The least effective teams are voted out of the competition.

The case was Southwest, focusing on a period in the 1990s then they were very successful but facing increased competition from attempts by the major airlines to replicate the Southwest business model. We were presenting on the challenges and making recommendations.

Our presentation was good. We were able to find some interesting graphics buried on Southwest's site, caricatures of the leadership mixed with the planes and logo. We were short and to the point, and didn't get hung up in the process map we had studied the previous week. This isn't just our collective ego talking; several of our classmates were surprised that we'd been voted out.

So it goes. Our consolation is that now we can focus strictly on papers for that class.
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