• Cleantech Growth Impacting Venture Capital Ecosystem

    Two years ago, Ira Ehrenpreis was quick to extend a hand at the IBF Venture Capital Investing Conference in San Francisco. When the general partner of Technology Partners told other VC’s that he invested exclusively in cleantech, they smiled and nodded politely.

     

    “We could barely fill break rooms a few years ago. Now we’re filling ballrooms,” Ira told a ballroom audience during his keynote entitled “The Future of Clean-Tech” last Wednesday at this year’s IBF Venture Capital Investing Conference in San Francisco. Ira’s influence among venture capitalists has grown as cleantech has expanded from 1% of the venture capital sector a few years ago to 20% this year.

     

    Cleantech was once considered just solar and biofuels. Today it touches on everything from transportation to energy-efficient windows. “There’s been a historic underinvestment in cleantech from venture capitalists, corporate and others,” according to Ira. Driving the growth of cleantech as a sub sector of venture capital is a shift in our collective consciousness. Enterprises are increasingly embracing sustainability and “going green.” In years past, a few companies including Google, GE and Wal-Mart made real commitments and others “greenwashed” their products through disingenuous marketing. Incidentally, this mirrors the current shift from enterprises using collaboration as a buzz word or marketing hype to actually collaborating.

     

    The cleantech venture capital ecosystem is far more global than the incubation system for most information technology start-ups. While Silicon Valley is the traditional epicenter of start-ups and VC, different global regions lead in developing particular cleantech technologies. Europe, Ira notes, has been leading in developing solar and wind technologies.

     

    As cleantech grows along with global investments in information technology and biotechnology, the collaborative ecosystem that defines venture capital will become more global and less Silicon Valley- focused.

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  • Reflection Enhances Collaboration

    Recently, I’ve grown concerned about the lack of reflection that can compromise collaboration. I define reflection as “pausing to think.” Reflection is increasingly lost in our interrupt and interact-driven culture. It may seem counter-intuitive in that reflection suggests working alone or in a vacuum. But there’s a difference.

     

    Some people think they do their best work by going off in a corner and making their mistakes in private. They prefer to interact with others only after they feel they got their part right on their own. Once their part is complete, they prefer to toss their work over the fence to the next person to do their part. This assembly-line approach to decision making, problem solving and product and service development compromises value.  This behavior clearly undermines collaboration.

     

    The other extreme is that in this Twitter-twitching, Facebook feeding, blog-obsessed culture, we feel compelled to constantly interact. Some health experts insist the fallout from these potentially obsessive behaviors includes everything from repetitive strain injuries to heart attacks, not to mention neglect of loved ones or divorce. Like endless face-to-face meetings, much of this online interaction is falsely labeled collaboration.

     

    In The Culture of Collaboration book, I define collaboration as “working together to create value while sharing virtual or physical space.” Also, value is one of the Ten Cultural Elements of Collaboration that I identify in the book. Creating value is critical to collaboration. In fact, it’s a useful acid test.

     

    Social networking includes a portfolio of tools and behaviors that can lead to collaboration, but it takes  more than a tweet, post, text or instant message to collaborate. Social networking and social media output can be much like cable television chatter. The difference is that social networking lets us participate, and we tend to dip in and out all day long. It’s easy to devote big chunks of time to chatter. And there’s nothing wrong with chatter, but it’s not necessarily collaboration.

     

    Constant interaction without reflection can compromise collaboration and value creation. Brainstorming, sharing ideas, and co-creation produces incredible value. When we pause to think, however, we can contribute more effectively when we’re collaborating. Reflection enhances value creation for collaborators.

     

    Using collaborative tools for chatter and fun helps instill behavior that sparks collaboration, but it’s easy to just keep chattering and never get around to creating value. Use value creation as an acid test for collaboration, and we derive greater satisfaction and real results from social networking and other collaborative tools. And reflection is part of that equation.

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  • Collaborate to Fix Venture Capital and Innovation Ecosystem

    With a severe liquidity squeeze and a withered initial public offering (IPO) market, the venture capital industry and entrepreneurs face incredible challenges. The infrastructure to take companies public has nearly collapsed.

     

    “The ecosystem is broken,” Judy Estrin told an audience at the Tech Policy Summit this week in San Mateo, California. Judy, serial entrepreneur and former chief technology officer of Cisco, was referring to the ecosystem comprising venture capitalists, investment bankers, universities, entrepreneurs, scientists, customers and others that has launched scores of innovative and profitable companies including Intel, Apple, Cisco and Google over the last forty years.

     

    Judy has become a crusader for innovation, one of the Ten Cultural Elements of Collaboration that I identify in The Culture of Collaboration book. While there have been “exit” opportunities for venture-backed companies in recent years, those exits have been almost entirely mergers and acquisitions (M&A). “M&A is not enough to spur innovation,” Judy insists. Therefore, we must fix the innovation ecosystem and repair the IPO market to regain innovation leadership.

     

    In her book, Closing the Innovation Gap (McGraw-Hill, 2009), Judy chronicles the breakdown of the innovation ecosystem.  She argues that sustainable innovation never happens in a vacuum. “It is not just a flash of brilliance from a lone scientist, nor is it simply the result of a group going offsite to brainstorm and play team-building games.” Judy also quotes Danny Hillis, former vice president of research and development at Walt Disney Imagineering, as saying essentially that the key is not only to create the “soup” where people brainstorm, but also to develop a system that translates their ideas into something effective. Clearly, Judy believes that collaboration is key to innovation.

     

    Collaboration is also key to fixing the innovation ecosystem. Let’s face it. Greed-fueled star culture helped break the ecosystem. To fix it, we must recruit and promote collaborators throughout the ecosystem. This means funding entrepreneurial teams focused on the fundamentals of building great companies. It also means rebuilding the public trust that companies are rooted in innovation rather than hype. It also means changing expectations to embrace long-term growth over short-term returns.  

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  • Telehealth Revisited

    Telehealth is back on radar screens of policy makers, health care professionals, engineers and marketers. As we rethink healthcare economics and delivery systems, technology advances are enabling new approaches and better execution of old approaches. Telehealth can enable healthcare access for underserved populations including rural areas, inner city areas, isolated regions, developing countries, and prisons.

     

    Michigan Corrections Polycom  Telepresence creates new opportunities for virtual consultations to approximate face-to-face encounters between providers and patients and among providers. Tandberg and Polycom, established vendors in  telehealth, now offer telepresence for healthcare. Polycom announced last month at the American Telemedicine Association 14th Annual Meeting and Exposition that the Michigan Department of Corrections is using Polycom telepresence for everything from tele-psychiatry to tele-nephrology.  Cisco’s Internet Business Solutions Group hasCisco HealthPresence developed HealthPresence, which combines Cisco TelePresence with patient health data captured by connected medical devices such as stethoscopes and vital signs monitors.

     

    In the late 1990’s, I conducted research in telehealth and wrote the “Personal Telemedicine” column for Telemedicine Today magazine. The magazine allowed me to write about every aspect of telehealth with an emphasis on how the tools and delivery mechanisms impact people. The name of the column played off my first book, Personal Videoconferencing (Manning/Prentice Hall, 1996). Since many of the telehealth topics I researched then are now re-emerging, I’ll share one column that’s still available online. It’s called "Twenty Minutes in the Life of a Tele-Home Health Nurse," which appeared in the December, 1997 issue of Telemedicine Today. You can read the column here.

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  • Collaboration at Fortune Brainstorm: Green

    I came away from the Fortune Brainstorm: Green summit in Laguna Niguel, California convinced that collaboration and sustainability are inextricably linked. Collaboration connects us with a broader ecosystem that creates value for our businesses and also—in a broader sense—for the planet.

     

    Fortune Managing Editor Andy Serwer, conference chair Marc Gunther and their colleagues created a thoughtful, compelling forum in which participants not only exchanged ideas but also developed solutions together on the fly. In other words, people were collaborating and creating value.  

     

    Informality is key to getting collaborative juices flowing, and the relaxed physical environment helped. The conference room at the Ritz Carlton featured Herman Miller Aeron chairs and coffee tables with small, sleek monitors on which participants could view close-ups of speakers.

     

    Here are some highlights of the conference:

     

    Traceability in the supply chain is good for business. That was the consensus of a break-out session in which Arlin Wasserman, vice president of corporate citizenship of Sodexo, Inc., the food service and facilities management company, noted that we need a “massive reinvention of traceability and transparency” in supply chains. Jill Dumain of Patagonia discussed how her company’s web site reveals both the good and the bad. Check out Patagonia’s Footprint Chronicles here. Now that’s transparency!

     

    Wal-Mart is collaborating with suppliers on a “360 scorecard” detailing social and environmental footprints of products. Leslie Dach, executive vice president of corporate affairs and government relations, insisted that this effort could affect thousands of products. He also indicated that Wal-Mart would build sustainability into every buyer’s job description.

     

    Fear of being accused of “green washing” has prevented Tiffany CEO Michael Kowalski from participating in any environmental conference until now. Kowalski described Tiffany & Co.’s efforts over the last decade to short-circuit the trade in “blood diamonds,” which are often mined by slaves controlled by militias and used to finance wars. Tiffany has reportedly removed blood diamonds from its supply chain by focusing on traceability and transparency. Tiffany can now identify the mined source of fifty percent of its products, according to Kowalski.

     

    Bill Ford, executive chairman of Ford Motor Company, noted that he has focused on protecting research and development dollars, despite the downturn. This is clearly a longer-term view that’s critical to creating value through collaboration. As I explained in my book, The Culture of Collaboration, Ford has highly-collaborative pockets. Its challenge is to leverage those collaborative pockets to adopt an enterprise-wide collaborative culture. When Bill Ford joined the Ford board in 1988, he was told that he needed to stop associating with “known environmentalists.” Guess he’s having the last laugh considering the growing realization that green initiatives create value.

     

    Peter Darbee, President and CEO of Pacific Gas and Electric Company, challenged the state and federal governments to collaborate with utilities in transforming the economy. At the onset of World War Two, the United States migrated from a peace to war-time economy within two years. “We need to do that,” Darbee insisted. “The government needs to get out of the way,” and streamline the permit process so that utilities can build transmission lines in two years instead of eight or ten.

     

    Jeffrey Hollender, president and “chief inspired protagonist” of Seventh Generation, challenged participants to create products and services that “restore the Earth rather than being less bad.” He insisted that manufacturers should consider the entire lifecycle of products.

     

    In an incredible story of collaborative leadership, Kevin Surace, CEO of Serious Materials, described how he reached out to union leaders after learning of a 6-day sit-in by workers at the shuddered Republic  Windows and Doors plant in Chicago. Rather than waiting to buy assets through the bankruptcy court, he proactively engaged the people who make windows and listened to their concerns. Serious Materials, which manufactures windows which Surace says are 400 percent more efficient than dual pane windows, ultimately bought the plant for $1.45 million and rehired the 250 laid-off workers.

     

    Former U.S. President Bill Clinton delivered the conference’s closing keynote with a call Clinton and Andy Serwer to action that federal and state governments and private industry move beyond policy talks and “operationalize” energy efficiency, carbon reduction and other green initiatives.  He mentioned two particularly interesting initiatives that the Clinton Global Initiative is enabling in collaboration with private industry.  

     

    Project 2 Degrees developed with Microsoft and others provides online tools that let cities establish a baseline for greenhouse gas emissions, create action plans, track successes for emissions reduction, and share experiences.  Cisco  is investing $15 million to reduce traffic congestion in cities through its Connected Urban Development Program, which uses information and communications technology to monitor emissions. 

     

     “What we don’t have is enough information sharing in real time,” President Clinton insisted.  Real-time information sharing is key to collaboration whether we’re reducing emissions or developing products. So the discussion of green initiatives comes full circle to spontaneous, on-the-fly collaboration.  I make the case in my book that the quest for value creation has forced the deserialization of work. The need for real-time information sharing is further evidence that sustainability and collaboration are joined at the hip.

     

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  • Managing Workflow through the Virtual Worlds of Qwaq Forums

    Some businesspeople are spending most of their day in 3D, immersive environments known as virtual worlds. This development emerged during a wide-ranging discussion last week with Greg Nuyens, CEO of Qwaq, which provides tools to create virtual worlds or “forums” optimized for business users.

     

    Greg, whose company is today releasing version 2.0 of Qwaq Forums at the 3D Learning, Training and Collaboration conference (3D TLC)  in Washington, D.C., observed that there are three types of Qwaq users. The first group spends about two thirds of the day in Qwaq and likely uses the software’s IP audio capability for most voice calls. The second group jumps in and out of the forums throughout the day, leaving the virtual “lobby” up all day long.  The third group uses Qwaq periodically through a browser, which is a new capability included in version 2.0.

     

    Qwaq combines the real-time collaboration functionality of web conferencing with the 3D immersive experience of virtual worlds. For background on Qwaq, see my March 13, 2007 post and my September 21, 2007 post.  Clearly, the Qwaq development team has invested significant time and thought into integrating the tool into enterprise workflow.  The version 2.0 interface is more geared to workplace collaboration with greater ability to move easily and gracefully around the virtual workplace– from the lobby to meeting rooms to cubicles to offices to auditoriums to command centers and around campuses. Meantime, users can share documents, slides, MPEG4 video, browsers, whiteboards, and other applications. Also, Qwaq supports real-time, interactive Webcam video and recording/capture of virtual meetings.

     

    Qwaq customers announced today include Chevron and the U.S. Naval Undersea Warfare Center, two of the roughly one hundred enterprise customers that Qwaq has reportedly garnered.  The Navy is using Qwaq as part of its virtual Combat Systems Center to remotely train submarine operators. The software running in the Center’s Qwaq Forum is the same software running on the weapons console. So the boundaries between real and virtual are clearly fading.

     

    According to Greg, Qwaq’s goals include “bridging distance to make meetings in forums more efficient than in the same room.” As I noted in my book, The Culture of Collaboration, as collaborative tools get more advanced, the next frontier is making same-room collaboration as effective as collaborating at a distance.

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  • Constructive Confrontation at the Clinton Library and Museum

    When I’m on the road, I keep my eyes open for collaboration insights.

     

    This week I was in Memphis and made a detour to Little Rock. In Memphis, I stayed at the Peabody Hotel, the grand old hotel of the south famous for the daily parade of ducks from the hotel roof to the fountain.  The site of several ducks marching in formation through the hotel lobby certainly requires coordination and arguably collaboration.

     

    Here in Little Rock…I’m staying at the Capital Hotel, which has an elevator big enough to supposedly have accommodated Ulysses Grant and his horse. Also, the Capital serves one of the best hotel breakfasts I’ve ever eaten. Everything is made from scratch! All of this in a gorgeous, old-world dining room.

     

    Back to collaboration. Regardless of politics and how you may feel about Bill Clinton, any leader would do well to take note of Little Rock’s favorite son and his thoughts about hiring, culture, and decision-making:

     

    “I don’t care how smart you are…” Bill Clinton’s voice boomed into my audio tour headset at the William J. Clinton Presidential Library and Museum. “Success and failure depends on how well the staff and cabinet debate honestly and openly and then unite once you’ve made a decision. “

     

    I was standing in the replica of the White House cabinet room, and President Clinton was setting the scene for the debates that occurred in that room on his watch as the 42nd President of the United States. “You never can tell when somebody who’s in an unrelated agency will have a really keen insight…thinking people, caring people who came from all different backgrounds from all over America.” Amen! Cross-functional collaboration!

     

    President Clinton was essentially talking about constructive confrontation, one of the Ten Cultural Elements of Collaboration that I identify in my book, The Culture of Collaboration. To effectively collaborate, the culture of any organization—whether it’s the federal government, a large enterprise, a non-profit, or a small business—must encourage debate and constructive confrontation regardless of level, role or region. 

     

    Constructive means that the confrontation is about making a better decision rather than personality conflicts or posturing. At some point, debate ends and an organization coalesces behind a united position.  Smart organizations encourage debate as President Clinton did among his staff and cabinet rather than blind agreement with the boss.

    Oval Office Replica

    The Clinton Library and Museum includes a replica of the Oval Office as it was when President Clinton occupied it. According to the staff, the former President often moves objects around or borrows them during his monthly or bi-monthly visits to the Library (he has an apartment upstairs with room for his secret service agents). 

     

    The docents tell me that President Clinton knows them all by name and is closely involved in almost everything that happens at the Library. I spoke at length with one docent, Jane Cazort, whose father-in-law was lieutenant governor of Arkansas and whose granddaughter went to school with Chelsea Clinton.

     

    Coincidentally, next week I’ll be attending the Fortune Brainstorm: Green 2009 conference in Laguna Niguel, California at which President Clinton is speaking.  More on that later.

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  • Collaborating out of the Downturn Focus of Blog Talk Radio Interview

    I discussed collaboration with Zane Safrit yesterday morning on his hour-long Blog Talk Radio show. You can listen to the show here.

     

    When he was CEO of Conference Calls Unlimited, Zane masterfully used blogging as a marketing and business tool. His small company, based in a rural Iowa community, adopted collaborative culture and tools as an advantage in a marketplace saturated with large players. Zane is a super-capable, collaborative leader.

     

    Our conversation ranged from common denominators and motivators for companies wanting to adopt collaborative culture and the biggest mistakes companies make. We also discussed the need to replace star-oriented culture and the role of collaboration in an economic recovery.

     

    Zane asked me how companies can balance the need for collaboration with the need for consistency, routines and procedures. It’s a thoughtful question that organizations should consider. I explained that it’s necessary to include collaboration in policies and procedures, so that people are consistently collaborative J.

     

    Towards the end of the show, we focused more on the economy. Zane asked me about the biggest trends regarding collaborative culture over the next two years. Here’s what I said:

     

    People are going to realize what collaboration is and what it isn’t, and I absolutely believe that collaboration will help deliver us from the downturn. We need to abandon the herd mentality. I blogged about this on March 15, 2009 with a call to action. You can read the post here.

     

    There’s a misconception that collaboration is about running with the herd. Real collaboration involves constructive confrontation….coming together to hash out issues, make decisions, improve processes and develop products and services. And it’s much broader than companies. It’s about governments collaborating across agencies and departments, with citizens and with other governments. It’s about people working together to create value in our communities.

     

    It’s about changing education so that we’re developing collaborators. The more educated people are, the more competitive they are. Our educational system beats collaboration out of us. That’s changing.

     

    I’ve lived and worked in smaller communities where many people get jobs right out of high school. They’re used to working together to cook dinner at the VFW or help neighbors repair tornado damage. It’s this type of attitude that we need to nourish in our country, in higher education, in companies, in and among governments. Coming out of this downturn, star culture and internal competition are unaffordable. Collaboration will drive the recovery.

     

    “How will that change our economy, culture, country?” Zane asked me.

    I responded:

     

    It’ll be back to basics…working together to create real value. The mortgage mess, the financial collapse were rooted in artificial value. We gave the keys to the country and the economy to star competitors… the best and the brightest who went to top schools and competed for themselves without considering the bigger picture. Now we need to entrust our companies, governments and communities to collaborators. And we’re going to build long-term, sustainable value.

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  • Telepresence and Formality

    Cisco’s use of TelePresence last Monday to announce its Unified Computing System sparked an interesting reaction on the New York Times Bits blog. The Times republished the blog post in today’s print edition.

     

    Cisco Unified Computing Launch The post by Ashlee Vance takes aim at Cisco for the “scripted” feel of the 14-site TelePresence session for reporters and analysts. You can read the story here. Some reporters who showed up at Cisco headquarters for a news conference were apparently frustrated that Cisco CEO John Chambers was in another suite upstairs rather than in the same room with the media. Vance also writes that the question-and-answer session that followed the two-hour event also felt scripted in that Cisco apparently muted microphones and prevented follow-up questions.

     

    OK. It’s time for a discussion of formality and telepresence. First, let’s separate the event from the technology. I did not attend the event, so I can’t comment about its execution. However, I did participate in a launch event and news conference last October for Cisco’s public TelePresence suites. You can read about it in my October 15, 2008 post.

     

    Like last Monday’s Cisco event, executives at the October 15, 2008 event were in a separate TelePresence suite from reporters and analysts who were in the same building. This worked well, because the local group was relatively small, and each participant had a seat at the TelePresence table. Also, the approach was particularly appropriate in that the subject of the event was TelePresence itself. During the event, which linked about six sites, I had no problem asking follow up questions and engaging in an extended dialogue with Cisco senior leaders.

     

    In contrast, holding a 14-site news conference like the one last Monday certainly can increase logistical issues and reduce the question time per reporter. The benefit, though, of using TelePresence for the event is that it significantly increased media participation globally, so that a reporter in Asia could gain the same access as a Silicon Valley-based reporter for The New York Times—access to Cisco CEO John Chambers and other participating CEO’s including Paul Otellini of Intel, Joe Tucci of EMC, Paul Maritz of VMware, and Bill Green of Accenture.  

     

    Despite increased access for geographically-dispersed journalists, there was clearly a disconnect between Cisco and at least some reporters who showed up at Cisco headquarters expecting a same-room news conference. Here lies the problem. Some reporters may have felt that Cisco was insensitive to their needs, and these reporters failed to grasp the benefits and potential of TelePresence. Consider the potential power of this tool…people coming together regardless of level, role or region and interacting in an immersive virtual environment that approximates across-the-table, same-room interaction. Some reporters missed this, in part because of formality.

     

    This disconnect highlights the need to ensure that the use of telepresence mirrors in-person interaction and preserves in-person etiquette.  Reporters on deadline get restless and frustrated if they must wait two hours before asking questions, and they always want the option to ask follow-up questions. Otherwise, they feel controlled at best and muzzled at worst.

      

    It would be unfortunate, though, if New York Times readers confused any concerns about event execution with the technology itself. The greatest potential for telepresence and TelePresence (the spelling with capital letters is Cisco’s brand of the technology) is for informal, spontaneous interactions. Currently, telepresence is used primarily for scheduled meetings and events. The most collaborative organizations use real-time, interactive video for on-the-fly encounters. I profile some of these organizations and describe specific ways companies can create value through informal, spontaneous interactions in my current book, The Culture of Collaboration.

     

    Since the publication of my first book, Personal Videoconferencing (1996), my team and I have been conducting research on—among other aspects of collaboration— using visual communications for spontaneous, informal interactions. Recently, I formalized this research effort by establishing The Culture of CollaborationÒ Institute. My future books and derivatives will leverage the Institute’s research. If your organization is interested in supporting our work, let me know.

     

    Organizational culture, environment and business processes are key to enabling spontaneity and informality. Tools including telepresence—used effectively—are critical enablers in extending and enhancing an informal, spontaneous culture. I highlighted the role of informality in collaboration during an interview with CNBC’s Donnie Deutsch on the “Collaboration Now” primetime special. You can view a video clip here.

     

    Telepresence is a key element in collaborative enterprises and will soon become available at much lower price points for consumer use. Without informal, spontaneous uses of the tool, vendors run the risk that people will view telepresence as a tool only for formal, scheduled events and meetings. The real value of telepresence is enabling on-the-fly encounters, sort of a virtual water cooler.

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  • Abandon Herd Mentality to Avoid Post-Digital Dark Ages

    There’s a dangerous—and convenient—misconception that collaboration is about stampeding with the herd. The misconception is convenient, because often people in organizations and neighborhoods figure out which way everybody’s running, and they follow suit. This tendency leads to mediocrity at best and can poison teams, organizations, industries, the economy, and our collective culture.

     

    In contrast, collaboration often requires constructive confrontation, one of the Ten Cultural Elements of Collaboration that I identify in my book. Rather than running in a pack, we can—through collaboration—come together in real time and hash out issues, improve processes and create better products and services.

     

    Unlike collaboration, herd mentality is choking off innovation and ingenuity, two cornerstones of the collective culture and consciousness particularly in the United States. Running with the crowd created the dot com bubble, the real estate bubble, mortgage crisis, and arguably fed Bernie Madoff’s Ponzi scheme.

     

    In much the same way the herd embraced and artificially ran up dot com stocks and real estate and plunged the world into a deep recession, the herd is now embracing the downturn with abandon. Media, legislators, regulators and stakeholders that were complicit in the dot com and real estate bubbles are now condemning the behavior they embraced. It’s easy to pile on, but where were these voices during the run up and creation of these unsustainable bubbles?

     

    In San Francisco, every day I see a couple of more empty storefronts on my flight path. And it’s the same story in New York. I was walking up Madison Avenue several weeks ago, and shuttered stores lined many blocks. People I know who eight months ago insisted on following the herd to the latest trendy restaurant are now eating take-out tacos or microwaving macaroni and cheese, even though they can well afford to eat in restaurants. Being cheap now propels the herd, so the herd is feeding the recession rather than a recovery. John Maynard Keynes, the economist, called the tendency to hoard rather than spend the paradox of thrift. His point, while controversial, was that unnecessary savings during a recession ultimately lowers savings because of the decrease in economic growth.

     

    Businesses faced with a credit crunch are slashing research and development budgets, cutting the meat rather than just the fat, and jeopardizing their futures. With bad economic news monopolizing computer screens, the downturn is feeding on itself.

     

    The period between the fall of Rome in the fifth century and the early Middle Ages in the tenth century is often called the Dark Ages. It was an era marked by cultural decline, ignorance, lack of enlightenment and societal collapse. The course on which we are headed as we follow the herd to avoid risk, innovation and investment is towards what I call the Post-Digital Dark Ages. While fiscal prudence and frugality make good business sense even in boom times, many companies are sacrificing long-term opportunities for short-term concerns.

     

    A Chevron spokesperson recently told me that the company has a dearth of people in their 40’s, because Chevron imposed a hiring freeze for ten years in the 1980’s and early 1990’s. The idea was to cut costs, but that strategy provided short-term benefits with long-term repercussions.  The ultimate result is a talent and knowledge gap.  As experienced team members retire, there is a lack of people with long-term institutional knowledge to replace them. Chevron wants to avoid a similar situation in this downturn and will reportedly continue recruiting regardless of short-term economic concerns.

     

    Exigent circumstances provide an opportunity to collaborate, think creatively, innovate, and create incredible value. But opportunity must be seized! The downturn is undeniably an exigent circumstance. Rather than succumbing to the herd mentality, we must reject a Post-Digital Dark Ages and engage and challenge one another to define and refine common goals, innovate, reinvent, invest for the long-term, and pave a path towards economic recovery.

     

    We now have access to tools and technologies that we could only dream about during previous downturns. Our challenge is to use these tools to strengthen rather than undermine traditional values of innovation and ingenuity. We must harness a range of real-time and asynchronous collaborative tools plus same-room collaboration to enhance real relationships sustainable in person or at a distance. As we build trust, we must strive to improve shared ideas through constructive confrontation and broad input regardless of level, role or region.

     

    More broadly, we must change the conversation from doom and gloom to growth and recovery. Let’s change our approach from hibernation and indecision to collaborative action. People are hibernating, because of across-the-board cost cutting and management edicts banning many necessary business expenses. The result is that team members are lying low, unable or unwilling to perform necessary functions. Therefore, management’s attempt to improve balance sheets is actually leaching value out of companies.  Also, we must find and employ collaborative problem solvers who can rethink how we’re doing business.  

     

    If we continue stampeding with the herd, we risk the onset of a Post-Digital Dark Ages. Through collaboration, we can ultimately exit the downturn with a more sustainable, long-term focus throughout business, government and society.

     

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