Tag Archives: Obama

Timing Isn’t Everything, But It’s Critical

One of the critical elements in defining a controlled process is to specify the performance standards under which it will be judged. Among the basic performance standards are:

–  Quantity (how much to produce, how many transactions to process)

–  Quality (how good)

–  Cost (at what value)

–  Time (due date, elapsed time to completion, incurred time to completion)

These all play off one another. They do not exist in isolation.  You want it now? It’ll cost you more.  You want it now? I can’t make that many. You want it now? Not at the requested quality.  The imperative of ‘now’ has important ramifications for any process.  And today, more than ever, the constraint of time and the imperative of ‘now’ is the performance criterion that seems to trump all others.

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Obama clearly understood the strategic imperative of time with respect to health care reform, but not the tactical implications of time in system implementation.  He understood that to avoid the long-term debt threat (not the faux short-term one) he must bend the health care cost curve, and he must begin now.  To improve the economy, he must get people back to work, and to do that, he must bend the health care cost curve, and he must begin now.  To avoid erosion of his initiative from relentless political attacks, he must advance it into reality so that it cannot easily be undone, and he must do that before he leaves office, and he must do that sooner before its intangible promise fades from public commitment under the withering fire of political assault; and the passage of time is not his friend.

What he and his team obviously did not understand, or would not acknowledge, was the tactical reality of producing a systemic platform to quality and quantitative standards within the time constraint of strategic considerations.  And here we are.  In such cases, time is not a destination, but a marker on a journey.  Best understood and communicated in that perspective. Too many CEOs fail to understand the limits of compressing time in the real world.

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Meredith Whitney misunderstood time in her failed prediction of collapse of the municipal bond market.  She may yet be right for all the wrong reasons, but she blew it by being specific about timing, and without caveating the prediction on critical collateral factors that would be necessary for the result. Two factors which probably contributed to blowing her timing were the ARRA program which pumped money into municipalities and in many cases did more to prop up sagging budgets than prime the economic recovery; and Quantitative Easing (QE) which propped up the stock markets and inflated pension portfolios that might otherwise have sunk further in value and forced more municipalities to the wall sooner.  The imperative of continuing QE likely has less to do with keeping Wall Street happy than with keeping fresh lipstick on the pig of state and municipal finances.  In this case, the injection of value has ‘bought’ time, but not necessarily results.  It may only delay the inevitable.

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I have previously written about timing and Clim-Ergy, the interplay of climate and energy issues. CO2 emissions and their consequences are moving on one time line.  Energy resources relative to economic and demographic drivers are moving on another time line. Renewable energy deployment is moving on a third timeline that needs to bend the first timeline before the second drives it beyond tolerable standards, and before the second plateaus and drives cost beyond tolerable standards.  Currently, there is no credible prospect that the third timeline will meet quantitative, qualitative and cost/benefit  performance standards within the necessary time standards, although that could change, but at the moment and in the foreseeable future, the odds are somewhere between slim and none.

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I recently convened a meeting in my community on the subject of affordable housing. A private developer has stated that a new apartment complex he is completing could never offer rentals at the comparatively low prices he is offering if he had to buy the land at today’s prices rather than its cost thirty years ago.  Interestingly, while he is attuned to the influence of inflation over time, he is apparently unaware of the time value of his sunk invested dollars over that same period of time, particularly at market rates of return.  That proves to be a major impediment in attracting private investors to affordable housing projects, because their need for return is greater within a specified time frame.  An alternative that I proposed is for the Town to buy the land and lease it, because it can be ‘patient capital’, and enhance the economics of the overall project, bringing in much-needed diversity to the Town’s demographics and economy.  That idea is a bit foreign in our community, but again it speaks to different perceptions of time and its value in monetary terms and collateral benefits.

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How soon do you need that ‘special something’?  The Big Box wants you to have it right now, if it’s worth your time and gas.  Jeff Bezos wants you to have anything in two days.    Why wait til Black Friday for those once-a-year Christmas sales when you can be thankful for them on Thanksgiving Day, assuming of course that you’re not a ‘sales associate’. In these instances, how much does time really matter, and what is it worth?

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How long is a ‘long’ war? Some would say any war is too long. The US public seems to think ten years is too much in Vietnam and Iraq-istan (a.k.a. Vietnam Too) . The Taliban thinks it’s just another day in Paradise. It’s more than willing to let the clock run out.  For the US military, the calendar has run out between those two competing perspectives.  Job not done.

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Time and education is a critical issue. Think about it. We have in our children a product that takes from 13 to 23 years to manufacture through formal education factories to a productive ‘resource’, depending on application. If one is preparing for a forty-year career, that is a reasonable investment, with hopefully a beneficial return on investment.  But if technological and economic and social uncertainties significantly truncate that timeline of application, it has significant impact on the choices and wisdom of the investment.

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Should Elizabeth Warren run for President and in possible primary opposition to Hillary Clinton?  For Hillary, time is running out.  For Liz, as for Barach before her, the time might not be right because she may not be ready with a broad enough portfolio or a sufficiently diverse and competent team to make ALL the right moves. But also, as with Barach, she faces a window of opportunity for her perceived critical issues that might not afford her the luxury of time to ‘ripen on the vine’ until ready.  Alternatively, she might be able to ‘borrow time’ by running with the ripened Joe Biden as his VP, pressing her finance issues while broadening her portfolio for a subsequent run.  Can women wait til 2020 for the first woman president in our exceptional society which has taken longer than most to advance a qualified woman to that position?  Or is it more important to sacrifice quality for time?

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Do you want to live to be 100?  It’s not just a question of time, but also a question of quality of life and cost/benefit (to me, not to the medical-insurance complex).  Maybe in twenty years my perspective on those two factors will change, but right now I’m gunning for 85 and out!

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And let’s not forget time and love.  Diana Ross sang that you can’t hurry it.  Mike Jagger (the taliban-ista of love) opined that it was on his side. The Outsiders sang it won’t let them wait that long. It’s all a matter of perspective.

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The value of time is not the same for everyone, but it must be understood, and the understanding must be communicated clearly, whether it is with an employer, a client, an investor, a society, a lover, or one’s self.

Thank you for giving me your time.

Onward

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Surveillance: A Dollar for your Thoughts

You’ve probably heard more than you want by now about the government’s various nefarious programs to stockpile all the information they might ever need to know in case any of us choose to go to the Dark Side.

You’ve also likely heard that the conduits of much of their information are the various information intermediaries that are becoming ever more entwined in our daily lives in great detail: Google, Facebook, Yahoo, Microsoft, Apple, Amazon, banks, the various phone companies, the beleaguered Postal Service, etc.etc.etc.

If you’re anywhere on the political spectrum between liberal and libertarian, you’re probably concerned about this invasion of privacy which really hasn’t been revealed to us suddenly. It’s been progressing for twelve years before our eyes and under our nose, but we’ve remained mute, or indifferent.  Mostly indifferent, I believe, because we do not yet feel personally threatened by this growing government power.

Now the pieces of the puzzle are coalescing into a more coherent picture, and we’re having an OMG moment.

I would be less concerned about this growing agglomeration of government power if I believed that there is a system of checks and balances in place that assures that its application is effectively overseen.  But there is no rational basis for such belief, and therefore every reason for concern.

I am less concerned about the data than I am about Guantanamo, and renditions, and water-boarding and the Citizens United Supreme Court decision and private for-profit prisons, which say something profound about our political value system and commitment to justice and due process; and none of which require Big Data to perpetrate tyranny.  The data is just icing on the cake.

The risk of Government tyranny is real.  If perpetrated, it could be great in scope, but most likely will be more narrowly targeted to real or perceived security threats.  It was a greater concern to me during the Bush/Cheney regime which specialized in bypassing due process and checks and balances.  But it is disturbing that the Obama administration has done so little to reverse those excesses, and has apparently added to the infrastructure.

The greatest safety against the threat of broad scope government tyranny is the government’s own apparent ineptitude to conduct large-scale security operations (border security) and intelligence operations to effect.  I imagine that if the government really tried to institute large-scale repression in this country, it would find itself confronted with various levels of resistance that would make Egypt look like an Easter Egg hunt.  Further, in a highly complex society such as ours, a government that would turn against its people would depend on an infrastructure far more vulnerable than its supply chain in Af-Pakistan.  And I would like to believe that there are still people in government who are smart enough to understand this and tread lightly.

But here’s my bigger concern in the realm of surveillance.  My bigger concern is with the intermediaries the Government relies so heavily on for so much of their data: the Googles and Facebooks, and Amazons and Apples and banks and telcos.  The Government is presumably focused on maintaining power and security.  But these intermediaries have a much different motive in collecting all the data they do in their own impressive data farms…Profit.  The quest for profit, as we should know by now, has no bounds. Certainly no ethical or moral bounds.

We have at least the illusion of a system of checks and balances and legal limits relating to government operations.  But in the US, what checks and balances exist over these private sector intermediaries in selling whatever of our relinquished data to whomever for whatever purposes. If these intermediaries are unwilling servants of the government in the security realm, they are willing pushers to other economic parasites in the private sector for clear economic gain.  We barely get insight into these relationships, and have little sense of our vulnerabilities and avenues of recourse.

For example, we know that businesses use algorithms to determine which customers can be better fleeced with price adjustments. What data sources feed those algorithms? We know that some insurance policies rate you on more than your driving record.  We don’t know how much information, from what sources, and with what degree of accuracy, may be gathered by a prospective or current employer in evaluating your suitability for employment, promotion, or retention.  What freedom-of-information processes apply? What due process exists for wrongful denial of service or employment or other opportunity apply. There is, in this realm of Private Dark Data, a potential tyranny far more immediate and impactful on personal liberty and well-being than the more likely scenarios of  NSA, CIA and FBI drones and data mining. Private Sector Surveillance is the more immediate and pervasive threat to the average citizen.

A dollar for your thoughts.

Oh, but I forgot to mention. you don’t get the dollar.

Every virtue has within it the potential of deception and tyranny. And every clever tyranny gains ground with the appearance of virtue.

Take the opportunity to kill the power on your cellphone and tablet every so often while in transit.  Drop off the Radar for a day. Make ’em wonder what you’re up to.

It’ll freak ’em, Man!

Onward.

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Law and Justice . . . and the Looting of America

"You go to court for law; not justice.  Law and justice are not the same thing. Never confuse them."

Those words were spoken back in 1963, not by a supreme court justice, not by a lawyer, but by a street cop I knew. He was my father.  The statement was made as a throw-away remark reflecting on a day in which he appeared in court as the arresting officer on a case in which he believed Dame Justice had suffered not a miscarriage, but an abortion. In his observation, it was regrettable, though not uncommon.

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Obama Was Right on Health Care

Obama was right to make health care his number 1.2 priority (along with propping up the financial system long enough for it to a) sort itself out or b) subject it to more responsible regulation (neither of which have occurred to date). I recognize that this flies in the face of conventional wisdom as proffered in the business and political punditry. Whatever.

But if you believe that the strength of the private sector, the preservation of jobs, and the control of the long term trajectory of the public debt at all levels are critical, then I would argue unequivocally that health care was and is the single most proactive strategic initiative that Obama could pursue.

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Gates Gets Energy

Bill Gates gets energy, almost.

In today's Politico, he addresses the need for a concerted long term energy policy.  He comes closer to the speech that Obama has yet to give, and has possibly lost the opportunity to give.  But Bill, too, has yet to go the distance. He has yet to tell the public what it must know. In the face of dwindling long term supply of fossil fuels and increasing world demand, energy innovation and evolution is not an option but a necessity. Without it, economic and ultimately civil failure is not an option but a probability.

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Strategic Reserves, Strategic Reservations

They pulled the trigger.  Was it a bang?  Or a Pop? More importantly, will the projectile of a joint release from the IEA members' strategic petroleum reserves prove to be a ricochet that produces a self-inflicted wound?

Much of the immediate commentary in the business press since yesterday's announcement has been superficial and unenlightening. 

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Great Expectations…

…are not always good expectations. The word 'significant' might be more appropriate in the current circumstances.  Here are a few thoughts on the prospects for the year ahead, and the decade it heralds.

The year and decade ahead will be one of transition. It will not necessarily be worse, and will not likely be better, but it most definitely will be different, cutting both ways with opportunities and threats of equal magnitude. Generally, we do not do transitions well, but that, like many items below, is a subject for future blogs.

Let's take this platitude down to specifics.

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