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Nigeria Expands Government, Creates a New Ministry – Ministry of Communication Technology

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Nigeria has created a new ministry. It is called Ministry of Communication Technology and it will focus on the development of Communication Technology in the nation. You will be sure that only ICT will be the only technology Nigerians will know as usual. This is a country where newspapers present ICT as the only technology on earth. We have left agricultural technology, geophysical technology and all other aspects of engineering  and technology of the media. It is like ICT = Technology.

 

So with this new ministry, all the options the kids will have is, to become a technology person, go ICT.

 

Meanwhile, Tekedia thinks this is a nice one. At least it can help us focus on the real aspect of technology. From a statement from  the Secretary to the Government of the Federation (SGF), Senator Anyim Pius Anyim, they are looking for a minister who is very versatile in the Information and Communication Technology (ICT) to be  in charge of the ministry in order  to give it the desired focus in view of the critical importance of ICT in driving a modern economy.

 

We think Mr. President has done a good job creating this ministry. Now, fund it very well.

 

Cisco To Fire 10,000 Staff – Hope CEO John Chambers is one of them

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Cisco plans to fire 10,000 staff, according to information credited to Bloomberg and reported in NPR Nightly Business News.  The plan will kick out of the doors, 7000 staff by August. Another 3,000 has already accepted buyouts.

 

The once innovative Cisco has been badly out-competed. Huawei has taken all the major contracts in Africa and Cisco has none. In enterprise business in the developed world, Juniper and HP have broken Cisco apart. Cisco could not find favor in the customer market with the camera Flip which it bought in excess of $500m and cloded. This company is in a pitiable state.

 

These cuts are by far more that what Cisco announced on its last disastrous earnings call. They represent 14% of the company’s workforce. With these cuts, Cisco will have a better qurater. The earnings will look  good as that will boost it – the usual Wall Street magic.

 

Unfortunately, sales will not improve by firing people. Cisco problem is the Asian competitors which use price to knock it out of the market.

 

Certainly Obama and the pols will not be happy to have extra 10,000 in the statistics. But that is the reality. Our only question is this: will CEO John Chambers follow them? When will Cisco Board ask the man to go. He has lost clue on the world technology evolution and his tricks are gone. John Chambers should resign from Cisco . Time is now.

Business Is a Living Entity and Must Be Seen Under Stochastic Behavioral Models

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Since the early days of modern civilization, management has been recognized as one of the most important tools for success. It is what separates the developed and developing worlds. It is the distinction between the good and not-so-good companies; the legendary iconic families and the also-existed ones; the bright and very poor students; and so on. The success of any institution depends on the quality of its leadership and inherently the management.

 

Many have written that there are management traits. Possibly, but those traits may not necessarily succeed in all management positions. While one trait can work well in say library management, it may not be that crucial in military battlefield. Both require skills, but one needs exceptional bravery and risk, and immediate. It takes a lot of management capacity for a general to declare vanquished in battle.

 

Recently, I have been reading many management books. To summarize, I think most present a management system that has a well defined order. It is a system where you understand your customers very well and can go about serving them. You know their needs and you develop strategies to meet those needs.

 

Most management books assume there is still much order in the knowledge market. These books still see the 21st century from the lens of industrial economy where classical factors of production determine strategy. Unfortunately, the market is constantly evolving and has become a mutating entity with disruptions arising from the advances in technology.

 

Making a product to be launched in two years based on consumers needs today, especially in consumer electronics, is a prerequisite for disaster. By then, their needs must have changed and the product valueless. To stay ahead, you must anticipate and have a perception that goes beyond the consumer imagination. Doing that involves an element of mutability in your teams as they must constantly evolve, disrupt and reorganize themselves to stay competitive.

 

Today’s management courses will fail to capture that system where you must constantly distort teams to make them better. This does not mean changing the people in the mix of the trio of people, process and tools (PPT). Rather, it is developing maxima of the three that serve unusually demanding consumer with so much knowledge. Agreed, operation research in business school teaches that, but rarely do you see it apply considering the easy of firing people when things go bad.

 

Internet brought a new class of informed consumers who can compare prices right in the comfort of their homes. The manufacturers have lost the edge on pricing just as the TV networks have lost the privilege of breaking the major news. In most cases, the networks summarize all the news we have read online. No wonder, they bring some auxiliary focus series every week to differentiate themselves.

 

Today, we are lucky to still be competing on the power of knowledge. What happens when knowledge becomes so common that it loses the power to set strategy? Will there by management? If computers provide singularity power and firms acquire them, what will happen?

 

Or in other words, how has management changed over the years? Can we argue that business schools do magic on students when they accept the smartest applicants who have already succeeded or succeeding and give those certificates and later claim they made them? Graduates of School of Hard Knocks like Steve Jobs, Michael Dell, etc top the number of business graduates from Harvard, Wharton, Booth, in S&P 500 CEO list (Bloomberg Businessweek). Can we say that business schools provide networks that enable the succeeding students to go much further?

 

If network is a very important element in success than business law, accounting, strategy and other courses, teaching Business Network will make sense. When you recall that the Father of Modern Management, Peter Drucker could not get into those business school Ivy League in his early years as a teacher, you will appreciate that the best business courses are not offered in top ranked business schools. Drucker offered them in a small school in California then. His students might have gotten the best of theories, but they missed the invaluable business cards the Ivy schools provide that makes the difference.

 

That makes me emphasize on business schools that put Life Cases ahead of Case Studies. Why? If not properly aligned, business school helps you to understand boundaries and may fail to allow you to set yourself free. They pump theories into your head and you become ultra cautions. That freedom of human mind is poisoned with thesis that cloud imagination. However, if the program has element of field work where they do real cases, they have a mix of theory and practice that makes them better managers.

 

As business schools become common, firms began introducing management programs to their staff. These programs are still structured within the mindset of industrial era where the more courses manages attend, the more they are ready to lead. Unfortunately, the legendary management firm like GE is not the most innovative in market. It is very arguable that those endless retreats really prepare the staff to manage in a world that is flat. A world that requires 360-degree understanding of new variants that generation that wrote those books cannot understand.

 

It makes me laugh when a seventy year old professor (no offense) is writing about social media networks. While it will be full of theories, Goldman Sachs that hires fifteen year olds to do some of their social media researches may have more actionable data. It is about Life Cases over Case Studies.

 

Wall Street has iconic managers, but many testified before Congress like Prince of Citi Bank that he had no idea on what was going in his bank. Lehman Brothers’ ex-CEO Fuld had a similar defense. But they were managers controlling a new order based on their mastery of old order.

 

That effervescence or mutation in business cannot be taught in business school; it must be inherently felt by self-aware people. Interestingly, the people that got the best of the meltdown included an ex-medical student. Most management trainings dilute entrepreneurism and the best hierarchical managers lose the capacity of being agents of business mutation.

 

Towards a Better Global Credit Rating

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Since May when we blogged on the Illusion of Global Investment Risk, we have been looking for Credit Rating agencies that will possibly give a challenge to the trio of Fitch, S&P and Moody’s. Together, these agencies facilitated the global economic crises through allocation of ratings that are dubious to securities and sovereign debts. We were worried that pragmatic nations like Botswana and South Africa will have the same ratings as Greece which was basically bankrupt.

 

But good enough, the Chinese are in town and something good is going to happen in the rating industry.  Dagong Global Credit Rating just published their first report on international sovereign debt and the numbers made sense. In its July 11, 2010 report, it correctly put China ahead of US, UK and Japan in credit rating.

 

Though the big three will contest that, we think Dagong is in line with what we have been asking in our blogs. The risk profiles of nations have evolved and must follow the new realities of the 21st century. The big three are doing nothing but awarding numbers based on ideology and beliefs, especially punishing emerging economies that are driving the global recovery without any major reason than subjectivities and perceptions that have been built for decades.

 

The changes from these nations are not recognized.  That is why South Africa may be a bad place to do business than Greece.  So at the end, these developing nations suffer through higher interests when they seek funds in the market because of the numbers the big three have assigned to them.

 

Instead of looking at economics, they focus on politics and per capital GDP which though important miss important points. Dagong comes out with what we think and have advocated in our blogs. Looking beyond the old perceptions and measuring realities. Dagong focuses on wealth creation ability, foreign currency reserves and fiscal health. In the mix of these three categories, China beats US, Japan and UK and certainly deserves better ratings. So, we agree with Dagong.

 

We congratulate Dagong and hope that SEC will approve and recognize them as accredited rating agency in the US. It will be a media war as the big three will not fade easily. We see the progress made in most African nations captioned by Dagong than the big three. We want cheaper sources of funds for our growths and we welcome Dagong.

 

original pub – Aug 2010. Just if you missed it in the other retired blog

Open Innovation Calls for Open Leadership Because Social Media Is Shaping Open Democracy

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Since democratic system of governance was invented many centuries ago, the present transformation or redesigning phase it is experiencing across many nations is noticeable. From America to Africa, technology is restructuring how citizens relate with their leaders. With readily available information, the citizens have become more informed and active in the affairs of the nation.

 

Leadership has morphed into a very simple two-way feedback system that is cheap, efficient and timely. And that has come through the powers of social media networks which enable interactions between any interested citizen and the leaders. From American President to his Nigerian counterpart, Facebook provides a platform for dialogue. Citizens can go online and post simple questions and expect the leaders to take note.

 

This evolving trend is possible because communication systems have become cheaper and accessible. In the old network TV model, only the very influential people could get on the TV to make suggestions on how the country could be managed. But today, what is important is an idea-have an idea on what government could do better, then visit the necessary website and post it. It turns out that if they ignore it, another website will escalate it until they notice it.

 

It is not just the political leadership that is using this citizen energy. Businesses are increasingly sourcing and sharing ideas from the consumers of their products. They get insights that help them shape future products. And the consumers also pass across their feelings when they do not get the products rights. In this piece, I will focus on the political leadership.

 

Never before is the citizen exerting more influence than what we have today. And the future looks more exciting because Moore’s Law will guarantee us more access to networks of more people as technology prices continue to go down even with more efficiency and performance.

 

In the midst of this development is a challenge for government to be ethical. Every citizen is a pseudo journalist and control over the media empires will not stop any bad act to be transmitted across the globe.

 

It used to be, take care of the big networks and any scandal will never be made open. It does not work anymore because there are many avenues to break news without the media houses. And those can move faster with devastating impact that even retraction makes no sense since the digital footprints are always there.

 

This implies that governments must be mindful that in the era of modern democracy, it has become more open. And this openness brings a challenge to act ethical at all times. There is no more a season of deals because anything can appear on the web. Technically, there is no secret.

 

Governments must understand that the tripod relationships between them, citizens and institutions have changed drastically over the years.  Globalization makes it possible to have access to information for benchmarking what other constituencies are doing. And immediately, firms and people change their expectations from their governments.

 

Over the course of many centuries, governments have moved from central, regional, then central, and now to citizen government, especially in democracies. The self-aware citizens do not accept polices hook, line and sinker. Even in feudal systems, the citizens are asking questions and that old dominance has since been challenged for accountability.

 

In America, the citizens could organize under a Tea Party umbrella; in Nigeria, they have Enough is Enough. Despite their different names and modus operandi, these organizations and many that can be found in any democracy are pushing leaders to be more open, accountable and responsive. And they honestly think that directing the future of the nation must not be left alone to the politicians. They want to influence dialogue and the nation’s trajectory. They ask questions on areas of national concerns and they want change.

 

Forty years ago, they may appear to be ill-informed. Not anymore! They have access to information that used to be seen by only government officials as technology has made dissemination easier. From Think Tanks to universities to non-governmental organizations, anyone could read their analyses online, free. Even the government’s own writings are easily available and suddenly that secrecy that leaders enjoyed over things that shaped their policies is eroding. People now challenge them with data and can authoritatively make their points for new directions.

 

Leadership in this era provides an opportunity that a star could be born overnight as performance news pass across boundaries. It offers an opportunity to be ethical and honest in dealing with the citizens. One understands the difficulty leaders face in trying to engineer the nation to long-term prosperity when most of the citizens are interested in the short-terms. How you communicate the need for minor pains today for major joy tomorrow will depend on how trustworthy you are. Citizens will believe an honest leader and can give concessions for the good of the nation.

 

As the opportunity is also the threat. It is easier to see politicians resign quicker and faster after scandals are broken. The bad news go through the same pathway the good ones pass.

 

In open democracy, what is truly leadership? Can we argue that China which shortened a century of western innovation into a quarter century under no internationally accepted democratic norm is not displaying leadership we could envy? No open democracy, but the world, especially Africa is looking towards China. They envy that state capitalism where the leaders build world class public institutions that Wall Street gladly accepts even when they criticize governments going into business in America and Africa. From banking to energy, we have pseudo government-run empires in China that best investors welcome though successful IPOs.

 

The reality is that under a citizen government, economic vibrancy is not the only gain of governance. People want freedom, by nature. Nonetheless, leadership and good one minus other externalities is not only found in democracy.  However, to the people, denying them the right to attain that position of leadership, if they choose, shows the leader is not a good one. It is about having rights to exercise wishes under the law. And every person irrespective of birth can fulfill a dream. Under this hypothesis, many African leaders that oppose elections are designated as bad leaders by the West irrespective of their efforts in other areas. By acculturation, the West thinks that a political leadership should be expressive and open.

 

Finally, I conclude that I dream of a world whose governance is open and transparent with a vista not only to economic greatness, but individual rights. It must be one where citizen energy is exerted in the affairs of the nation and leaders stewards not only to the citizens, but the nation.  And those leaders taking the opportunities that technology brings through openness and continuous improvement  to restore the dignity of man.