Kelley School of Business Indianapolis

Did you ever meet someone who was just absolutely professional but had the personality of an automated system? They are essentially getting the job done, but lack that human factor that involves making a connection. I have been fortunate enough to work with people who are professional and have a lot of personality. It is important to be able to be fun and enjoy what you do. There isn’t anything wrong with being effectively efficient and being able to tell a good joke. I am surrounded by the most fascinating people. Everyone is unique in way that brings something different to the company culture. 

One of the most exciting aspects of this company’s culture is the love of College basketball. I am a big fan of basketball and I felt like I struck gold when I started working for a company that loves basketball too. We had a day where we were allowed to wear our school colors and enjoy free food. There was no doubt that my area would be representing IU all the way. I declared some of my co-workers IU just by association. They were really cool about wearing IU instead. My boss went to Purdue and as a joke I have been bringing her a small gift each day, but they all have an Indiana University logo on it. She is really sweet about the gifts and kindly re-gifts them to an IU alum. Nevertheless, it is clearly evident that having a high level of professionalism doesn’t mean you have to lack in personality.

Recently, Kissmetrics (which hosts one of my favorite marketing blogs) had a post called “What You Can Learn From These 10 Infographics.” So, here’s what I learned – mostly, I don’t like Infographics and they are multiplying at a rapid pace. Hope I don’t sound like too much of a wet blanket and grumpy academic. Kissmetrics tells us that although infographics have been around for decades (think about graphic representations of data you’ve seen in printed brochures), they have become the go-to tool of choice on the web. There are lots of good reasons why people are interested in infographics:

• Rich visuals are helpful in web marketing and search engine optimization – they showcase expertise, they are shareable and they can be linked to. Oh, and sometimes they go viral!
• They can be more engaging and content marketing is all about engaging your audience
• There’s so much data bombarding people today that they welcome something that makes data easier to understand

But, after viewing several hundred infographics over the last six months, I’ve come to a different conclusion – most Infographics give me a headache. So, here’s my list of reasons why:

1. Data Confusion. The point of an infographic is to help us “see” data more clearly. Many infographics are stuffed full of data, but they don’t actually help us see what the data mean. Instead, they take a lot of time to interpret. So, kudos to Time Inc. for a great infographic showing wear Americans live – you should definitely check out the visual at this link TIME INFOGRAPHIC
2. Data Inundation. My theory is that someone said, “Let’s stop making PowerPoint slide decks. Instead, let’s take 10 slides and smash them into one giant slide.” I actually like the content, look and feel of this St. Paddy’s Day infographic on Visual.ly. The graphics are easy to interpret – you can see the data quickly. But, they’ve jammed about 10 data tables into one graphic. I lost the point about halfway through. Maybe I am just lazy. But, I need my data chunked out in smaller bits.
3. Impossible to print or reuse. When I do find data I love and key points I want to make later in my classes and presentations, I can’t actually leverage the materials. These graphics are intended for the web. So, they are not traditional print sizes. And, because they are so visually dense, the file size is huge. Don’t believe me, just try it for yourself
4. The data gets dated. Because infographics are meant to be shared via the web, they tend to stay around for a long time. Even in the Kissmetrics post, they highlight two infographics where the data is stale. Even so, this infographic about the progress of BP relief well drilling in 2010 is cool to look at and pretty easy to interpret.

But, here’s the real challenge. As a quantitative marketer, I love data. I desperately want to see people taking data and making easier for others to visualize. So, I really, really want to like Infographics.  But alas, I keep finding myself disappointed. I am coming to believe that it might just take video to help us visualize data, especially big data. So, here’s my list of great videos that really helped me visualize data:

• Jer Thorpe talking about his experiments with data visualization and a new software he created to analyze twitter feeds based on NY Times stories – It’s a TED talks
• Visual.ly has an area where you can see the interactive timeline of how rumors spread – I like the one about the London Zoo
• Here’s another TED Talks where Drew Berry has found a way to visualize the molecular process of DNA replication. I am not even a biologist and I was captivated.

Granted, these videos take more time. But personally, I find them very engaging! Oh and I did truly appreciate this infographic one of our Kelley marketing students created last fall. I think it gets the point across nicely.

 So, what are your favorite infographics? What are you doing to help others see your data more clearly?

While in South Africa, we have arranged business meetings with several multinational companies to discuss what it takes to do business in South Africa. Among the companies that we met with were Cummings, Eli Lilly, and SAB Miller. The first two are familiar Indianapolis headquarter companies and the other is a South African beer maker who acquired the American firm Miller Beer. We met with director of the South African business unit of Eli Lilly and Cumming and met with the CEO of SAB Miller.  Having the opportunity to met and gain knowledge from the management of these companies was priceless.

It was interesting to hear how the businesses had to adjust when developing a presence in a foreign country. A company has to worry about understanding the culture and consumers of each country that they serve. They must understand the population, government regulations, and environment that they are going into. For example South Africa has a large population of undereducated people due to the education system during Apartheid. Many companies stated that they were experiencing a shortage of skilled people to choose from in terms of employment. There are many unemployed people in the country, but they are unable to perform the tasks needed. Also South Africa has regulations that companies must adhere to within the country even though the companies are not headquartered in the company. In order to do business in the country they must be in compliance with these regulations in addition to the ones in the US. Being social responsible was also a key of each multinational company.

All of the meetings were interesting, but the meeting with SAB Miller’s CEO, Norman Adami, was my favorites. He took the Miller brand and nursed it back to life. The company is one of South Africa’s outstanding companies. They take pride in developing their employees with training. They also empower employees within the companies as well. SAB Miller allows their drivers to own their trucks. Not only did it serve as a way to gain wealth for the employees but also made them more productive adding to the efficiency of the business. He also gave some nuggets of wisdom to us:

• Make reality your friend: Look at all the facts
• Strategy is situational: sometimes your strategy will have to change depending on the situation. Don’t be so ridged.
• Strategy must be bold.
• Find the genius in simplicity
• Leadership requires the both the head and the heart.

I attended a party with a coworker who works in the Career Planning Office. He stated that there are over 100 employment opportunities, both internships and permanent positions, that were yet unfilled. I was taken aback. I said, "None of those positions are in accounting, are they?" To which he smiled and said, "Oh, no. With the accounting students, all I had to do was sit back and watch."

Am I proud of the accounting students? You bet! The MSA and MST students hear it from the beginning at orientation—go to the Meet the Accounting Recruiter event. Meet with your professors. Stay involved.  Why? Competition. With over 400 accounting students on this campus alone, you have to distinguish yourself. And how can you do that? Instead of staying in for a 5 year undergraduate degree, pursue your master degree in either accounting or taxation. You should be taking the courses that will help you not only pass the CPA exam, but also help you not only secure a job, but help you in your chosen career path.

The MSA and MST programs feature classes that are only offered at the graduate level. In addition, you will have some access to classes offered through the MBA program and the law school. Employers are becoming more discerning. Some recruiters will even review your transcripts, looking for specific classes. 

Interested in tax? Both the MSA and the MST program offer classes in S-Corp Taxation, Partnership Taxation and fiduciary taxation. Is auditing a better fit? We offer classes in Corporate Financial Reporting and Financial Statement Analysis. 

The job market seems to be improving. That means even more competition for coveted positions at prestigious firms. Now is the time to go the extra mile and get your graduate accounting degree! 

One of my favorite media sources is This American Life.  It is an hour-long quirky journalism program that reports on off-beat stories that can be compelling, heart-breaking, or hilarious, and sometimes all three at once.  The show is produced by Public Radio International, and can be heard on public radio stations or the podcasts can be downloaded from iTunes or the This American Life website.

In January, they broadcast an episode written by Mike Daisey, an actor with an off-broadway show about Steve Jobs and Apple.  The episode specifically centered around Apple's Chinese suppliers and the working conditions in the factories there.  Mike's story met all the criteria of a great story (compelling, heart-breaking and funny), and, in fact, became This American Life's most downloaded episode.

There was only one problem:  it was all bs. 

Much of Mike's story was fabricated.  He told of meeting with underage workers and workers who were disabled and/or poisoned by the production process and then terminated.  His story included armed guards, government blacklists, and inhumane living conditions.  Most of it he made up.   A real journalist who has experience in China thought a lot of it sounded fishy, so he followed up on the story.  He tracked down Mike's translator (using Google) and she confirmed that none of the above things happened when he was researching the story.

This American Life has published a retraction episode in which they investigate what went wrong.  The NY Times has covered the story as well.

I listened to the episode.  Since it was related to outsourcing, supply chain, and all that kind of stuff, I shared a link with my class (to my M303 students, sorry about that).  I told my friends about it.  Now I feel as if I've been duped.

There is a raging debate going on now (type Daisey into Twitter) about whether Mike Daisey is a lying self-promoter (a la Greg Mortenson of "Three Cups of Tea") or is being attacked for attacking Apple.  You can put me in the first group. 

What are the lessons we can take from this?

Don't lie.  I'm sure that when he started adding some details, he thought it was for dramatic effect.  But one thing leads to another and in this connected world, things come back to haunt you.  That little resume "enhancement" will come back to bite you. 

Mike Daisey is out there arguing that the truth (that Apple allows the mistreatment of workers) is more important than the fact that he made up interviews.  However, he has probably done more harm than good.  What better ammunition for Apple than the fact that its most well-known and outspoken critic is a liar?

What else?  I don't want to be the media basher.  In fact, I think the problem with this country is that too many people are skeptical of quality journalism, rather than that people are too trusting.  However, maybe I need to be more discerning about what I hear and what I pass on to others.

What is your take?  Do the ends justify the means?  What can we learn about ethical decision-making in journalism and in business from this episode? 

 In my last post, I mentioned how much I love snow skiing and shared my latest downhill ski adventure. I also love cross country skiing. Over Spring Break, I was out for a long, long cross country ski when it hit me that successful marketing ends up being a blend of these two types of snow skiing. How so? Well, let’s see what all three have in common:

• They get your heart pumping – in cross country, you are doing a lot of hard work that can leave you out of breath if you don’t hold back. Downhill is an adrenaline pumping rush of high speeds. But, great marketing can be an awesome rush too. When you launch a new product or new campaign and you see how well it’s working – the phones are ringing, people are clamoring to try it, prospects are saying, “yes, I do want to hear more”, you send an email and donations jump $1,000... It feels great!

• They take focused concentration – cross country skiing may look easy, but trust me that if you get your weight unbalanced, down you go. The speeds of downhill feel awesome, but you have to be looking out ahead of where you are going to make sure there are no hazards. And, marketing means being strategic – understand your prospects’ behavior, lay out a plan to change that behavior and be ready to adjust because every marketing plan needs adjusting in implementation. Oh yeah, and you better be monitoring how it’s working so you know when to adjust.

• They all take practice to master – need I say more?

• You have to expect the unexpected – there are very few flat surfaces in cross country skiing. Once you climb a hill, you never know what’s on the other side but it’s typically treacherous. After all, cross country skis are about as wide as your foot and not that easy to control. In downhill, it’s all fun until you are out of control or another skier suddenly looms right in front of you or you realize that the rest of the slope is covered in moguls (these are those large bumps on the slope) and exposed rocks. And, there are plenty of examples of marketing campaigns that went awry – how about product delays that leave buyers searching for your product since the ads were bought before you knew there was a delay, or a Groupon that’s so successful it crashes the website, or even worse, no one even noticed your latest campaign or product? In fact, when you are laying out your plan it probably makes sense to come up with Plan A, B and C.

• Finally, they all work better when you have great equipment and tools – in both kinds of skiing, better equipment usually means more comfort, more responsiveness and easier maneuvering. With marketing, better software makes it easier to create, manage and monitor what you are doing. But, I’d argue that marketers also benefit from the tools we typically teach in our marketing classes – frameworks for understanding what’s happening in a market and with customers, strategies for how to manage through these situations and best practice examples to guide future decisions.

Okay, so why do I say successful marketing is a blend of the two? Well, cross country skiing is a lot like the planning and strategizing part of marketing – you are doing a lot of hard work and you’ve got to have a bigger picture in mind. Most cross country trails are several miles in length and take you out to somewhere and back. You provide the power that gets you to your destination.

Downhill skiing, on the other hand, is a lot more like marketing execution. You get things started and watch how they unfold. Your job now is to keep things moving and remove hurdles along the way. The execution is all the more fun when you know you’ve already done the hard work to plan for success! Likewise, I relish my downhill skiing days after a day spent going cross country.

With all three, I’m glad I still have plenty of time to practice my craft. If you believe Malcom Galdwell's assertion in Outliers, it takes 10,000 hours of practice to be freakishly great at something. So, at least with skiing I've got quite a long way to go!

Our trip started in Johannesburg, the business capital of South Africa. First we reinforced the history of the country that we studied by visiting a couple of the city’s historical sites like the Hector Peterson Memorial, Vilakazi Street(home of two Nobel Peace Winners), and the Apartheid Museum. It amazes me the parallels of the South African Apartheid to the Civil Rights Movement in the US. Most citizens just gained their independence in 1990. Previously the country had been divided by race in everything from where you were allowed to live to what type of job you were allowed to have.

The museums and memorial were very insightful into the history of South Africa. Hector Peterson was a young child who was shot during youth protest. This event helped to start the beginning of the end of apartheid in South Africa. We also saw the Apartheid Museum which gave a detailed account of the separation created by the Apartheid period and the events that ended them. International pressure such as sanctions from the US and other countries due to the unjust treatment of the black African people was a major factor in the end of apartheid. Both of these museums were very moving and caused you to think about how many people gave their lives for the things that they believed in. We also saw the home of the first president after Apartheid was ended, Nelson Mandela.

This portion of history must be understood when trying to understand the business and economic environment South Africa. There are huge disparities in education and economic wealth within the country. When we arrived at the airport, you immediately noticed large communities of shacks with tin roofs alongside the road. In other places you see large houses surrounded by gated fences and armed guards. The unemployment rates are officially around 25%, but are probably even more than that figure. It was sad to see the huge gap in economic status. While some lived in complete poverty others lived in absolute wealth. There is a large population of the black African population who are uneducated and unskilled as well.

After a 17 hour flight to South Africa, I was happy to get off of the plane. I smiled to myself. I was finally in South Africa. I took a deep breath and tried to take in all the around me. The weather was beautiful and so was the scenery. I would be joining my other 7 classmates and Professor Lyles for 10 days in the country of South Africa. After months of reading, discussing, and researching the country, I was finally there. I could not wait to experience all the country had to offer.

Before I give you my experiences in South Africa, please allow me to introduce why I'm here. My name is Yvonne Gilbert and I am a current Evening MBA at the Kelley School of Business. I have a concentration of Marketing and Supply Chain Management. This is my last semester at Kelley because I will be graduating in May. When I first started at Kelley I only knew that I wanted to hone my marketing skills. Since then I have gained so much valuable experience from Kelley through different enterprises and consulting projects. These experiences will make me more valuables as a potential job candidate and stand above other applicants. I currently have my sights set on international experience, which brings me to the reason for this blog.

In the spring, I started taking the Emerging Economy class taught by Professor Marjorie Lyles. This semester the class focuses on South Africa. As the name implies, the course focuses on the emerging economies around the world. Previous classes have focused on Russia and Brazil. The first half of the class consists of studying the emerging economy of a country. We read different books and articles, watch documentaries, and produce papers about the economy. To supplement our learning, we have different speakers to talk to us on different aspects of the emerging economy. The second half of the class consists of seeing the country first hand. We will be visiting various businesses and government offices in the country to see how they operate in the country. The culmination of the class is a group paper centered on a specific issue relevant to the country.

I chose to take this class for various reasons. Here are a few:

• Companies are looking outside of the US for growth opportunities. Most of these opportunities come from emerging markets. Learning about different aspects of the emerging economy will allow you to be more marketable a potential employee.
• Getting international experience. We are able to learn about and from several international companies in South Africa. Being able to ask these companies about their strategies in different countries is priceless.
• Learning about different Cultures. I have traveled internationally before and I enjoy learning about other ways of doing things. You can always learn a thing or two from other people.
• Getting to visit South Africa. It's a beautiful country. I jumped at the chance to visit it.

Now that we have gotten all the introductions of myself and the class out of the way, the next blog entry you will see from me will be about my experiences in South Africa. Until next time....

While I love teaching students working on their marketing degrees, I have to admit that I do look forward to Spring Break because it usually means a chance to get in some snow skiing. I've gotta be honest, downhill skiing is one of my favorite activities. And, there is a limited window of time when you can easily do it. Plus, skiing at spring break gives me a chance to reflect how what's happening in my classes and rethink how I want to finish out the semester.

Now, I've been skiing for quite a while...let's just say more than 20 years. And, I've been using the same skis since before Dick's bought Galyan's (which was some time in 2004). I know this because my right ski still has a Galyan's label on it. But, when it comes to skiing my motto has been "if it ain't broke, don't fix it."

But still, even a loyalist like me sometimes lets their eyes be distracted by a bright new shiny toy - you got it, the latest rocker skis. So today, I demo'd a pair. And, they were really playful. A few runs hitting some moguls and I was feeling very comfortable and confident. So, we decided to head into the bowls. Now, those of you not familiar with bowls might not realize that these are considered "extreme" trails. Actually, trails is an overstatement as they are more typically just snow-covered ground through the woods on steep faces of the mountains. You make your own trail, being as aggressive as you dare.

So, we hit The North Face and Hawk's Nest. At this point, we could have taken the "easier way" to the "Paradise Lift". But, we felt good and decided to take the risk of doing even harder slopes. Then, we hit the Sock-It-To-Me Ridge followed by The Last Steep. As we were making our way down what was clearly the steepest slope of the day, I started to go across some rocks and in seeking a way to avoid them lost my confidence and my edge and started sliding right down the mountain sideways. Then, my first ski flew off. I figured that wasn't good and really jammed my remaining ski in to try and stop. Instead, I had too much momentum and rolled head over heels. I figured this was not good, but as they say, "a rolling stone gathers no moss." Neither did I.

Lest you worry, the story ends well. I eventually stopped sliding downhill and was completely uninjured. The picture at the right gives you sense of how steep the mountain was. And, I only started sliding about 2/3 of the way down which although hidden behind the trees was actually the steepest part. As I picked myself up and tried to find my 2 skis and 2 poles, I started reflecting on how I had survived. Then, it hit me that it was much like the last corporate reorg that I survived. So, here are my rules of survival:

1. Protect your head. In skiing, this means wearing a helmet (which I did). In a corporate life, this means finding some powerful mentors to shield you. Of course, it helps to have these folks in place before the reorg starts
2. Tuck your head in. In either situation, having your head or neck sticking out is probably too risky right now
3. Bring your arms and legs in as close to your body as possible. Your goal is to avoid peripheral damage. Same as #2 above in terms of the payoff for taking a risk
4. Be calm because this too will pass. Don't panic and start acting crazy. Take deep breaths. Find your "happy" place...
5. When it's all over, breathe a sigh of relief and thank god you were lucky this time.

I am not suggesting that knowledge, experience, and capabilities have nothing to do with survival. Quite the opposite. Being knowledgeable and increasing knowledge through education definitely help. I've been scuba trained and have done rescue first aid training several times. Experience gained through hard work help ensure you are doing the right things most of the time. And, both of these traits will help others want to support you. Still, I do believe that every now and then we all need a little luck. And boy did I feel lucky today!

One final thought - always remember your support team too. While I was busy shaking all the snow off and checking to make sure I was intact, my constant support team known as my husband was at the ready to jump in and help out when he could. This time, it was just to help recover skis and poles. But boy was I thankful he was there.

Today, trying something new was a calculated risk. While that risk had a few questionable moments, in the end it paid off: I found a new pair of skis that help me perform better than before, I had an awesome day, and I had an adventure worth sharing with others. What's your next calculated risk?

Out of all of the skills that I have developed as an MBA student, I think the most important has been my ability to analyze situations much more effectively.  I have found that I am able to take a more practical, business-minded approach to topics that might not be business related. 

While there is still an emotional element to most decisions that I make, I feel more confident that I am now able to see more sides of a situation than I did before. The most recent example of this came with the “Kony 2012” film that seems to have taken over Facebook and other social networking sites.  In short, the Kony 2012 film is a viral video that was released by an organization that is devoted to spreading the message about war crimes in Africa.  The film specifically focuses on Joseph Kony, the leader of the Lord’s Resistance Army in Uganda, who has reportedly abducted tens of thousands of African children.  Surviving males are forced to fight for the movement and the females are forced into slavery.  It is not my intention to discuss the video itself or the situation in Africa that is referenced, but rather to show how my mindset and approach has changed during my time in the Kelley School of Business.

This video has spread like wildfire across the internet and with it, quite a bit of skepticism, mostly aimed at the organization responsible for its release.  The arguments that I have seen about the video mention that the organization that created and released the video, Invisible Children, Inc., has only given about 30% of the money it has raised to projects in Africa.  Many people also have issues with the transparency of the financials of the organization and the way that it spends the money that it has raised.  I believe that three years ago, I would have taken the same approach as many of these skeptics.  I would have probably dismissed this video because I had an issue with the organization behind it and they way they spent the money they had raised.  Now, my mindset has changed considerably and there were two thoughts that came to my mind as I read the critiques of the video.  

My first thought is: You don’t need to support the organization to support the message or the cause.  Before even researching the spending practices of Invisible Children, Inc., I already had some issues with the organization.  Specifically, with the tactics they mention in the video for spreading their message and the recommendations for their supporters to help spread the word.  However, more importantly is the fact that I do agree with their message and I believe in the power of social networking to inform the masses.  This led me to even share the video on my own Facebook account.  My decision to post the video was strictly based on the fact that I supported the message of raising awareness of the situation in Africa, not in support of the organization that created the video.  

My second thought (which is where my business mindset really kicked in) was regarding the mission of Invisible Children, Inc.  Critics have stated that the organization has only given one-third of the money it has raised to projects in Africa, however, at no point in time while I watched the video did I see this organization as one that is working to rebuild war torn communities.  Even after a little research, it is clear that the mission of this organization is to spread the word about the crimes being committed in central Africa and make people (mainly younger people) in developed countries aware of the situation.  Therefore, I would assume any money that the organization raised would be going specifically toward that mission. Raising awareness, NOT rebuilding communities.  However, it has become evident that many people fail to see the difference and as a result the message gets diluted, which is very unfortunate.

The ability to separate my own issues with a specific organization or medium with the overall message it is trying to send is something that I developed in the Kelley MBA program.  It is something that is going to be very valuable in my personal and professional life.  Admittedly, I still find myself dismissing or ignoring a message because I might not like the person that is delivering it, but I have become better at recognizing this, and will continue to improve.  It is easy to find fault or reasons to disagree with something or somebody, but many times the overall goal is more important.  Successful leaders are able to make this distinction and look at the message rather than the messenger.

On Friday March 2^nd, Kelley hosted its 66^th Annual Business Conference in downtown Indy. I always look forward to attending this conference as it gives me a chance to take a deep breath and think about something more than what’s going on in my classes. But, this year I was especially excited given the theme of “Incite Innovation”. You know it’s going to be a great day when you start by hearing what John Kao and Ray Kurzweil are thinking (click on their names if you want to see what they are up to). And, they both had some very interesting and futuristic ideas to share. But as a marketer, I really enjoyed the luncheon talk by Don Knauss, Chairman of the Board and CEO of The Clorox Company. He shared several ideas that anyone working on their undergraduate marketing degree or marketing MBA needs to remember:

1. It’s not competition that will kill your business, it’s not paying attention to customers that will kill it. So many companies seem to focus on what others are doing instead of understanding what customers are doing. Customers’ needs change. If you don’t keep up with them, they’ll find their own alternatives and fire you.

2. In order to innovate, you have to start with what problem customers are trying to solve. Then, apply advanced technologies to help them solve that existing problem. My favorite example was how Clorox has improved Glad Bags. People want to send less plastic to landfills. But, trash bags that rip are a nightmare. So, Clorox borrowed collaborated with P&G to bring diaper technology to create a stretchy, thinner trash bag.

3. Be careful when you are trying to understand what customers want. Often, they aren’t great at figuring out what they really want or need. But, they are great at complaining. So, figure out what problems are causing them to complain. We used to call this Problem Detection research. It’s still a great idea for existing products and services. Sometimes now, we refer to this as focusing on the Customer Experience.

4. Let’s not forget the macroenvironmental trends. Since innovations are only good when people want to buy them, it helps to look forward at trends that might be impacting your customers. Clorox apparently looked at future trends and identified four that they think will affect their products: 1) Increasing concern for health and being healthy, 2) Making sure that what we are doing leads to a sustainable future, 3) Keeping products and services affordable (a nice way to say we are more price-sensitive), and 4) An increasingly multicultural US consumer. As they choose between innovations to move forward, they compare them to this set of trends and tweak their improvements or prioritize them against future potential.

Thanks, Don. It was great to be reminded about how to understand customers and innovate solutions to keep them happy and productive using our products. So marketers, let's create the innovations that add value and excite our customers to support our brands!

Like many in Central Indiana and beyond, I anxiously awaited (dreaded?) the news about Peyton Manning. And like many I was disappointed by the outcome. But I am not here to join the pundits waxing poetic as why it happened, where #18 will go, or who is to blame. No, as a Management professor with a focus on Strategy and Entrepreneurship, I’d like to focus on one aspect about the news over the last 3 months that disturbed me: The distinction that this was a “business decision” and the implications of what that entails.

So what does this mean? A business decision as opposed to…what? I looked back through much of the press over the breakup announced today, and interestingly there are few direct alternatives explicitly named. A business versus a philanthropic decision? Versus a “non-pareto optimal” decision (a nod to our economist friends)? Perhaps the alternative would be a Ouija board decision?

A decision based on relationships seems to be the preferred interpretation of an alternative. This was all about the Benjamins, not the good will Peyton may have generated, his role in the community, or what this means for the team and NFL. No, this was just about $$. And that makes it a “business decision.” (You almost want to spit that out, don’t you?)

I teach strategy to practicing managers and executives in Central Indiana and in the Kelley Direct online program, which reaches savvy business folks worldwide. I have had the privilege of advising executives and boards of firms large and small, old and new. And I doubt that ANY of the experienced businesspeople I have come in contact with would tell you that “business decisions” are purely economic. In fact, most would argue that it is the people and the relationships between them that most directly affect the success of an organization, whether a new venture or ongoing concern, for-profit or not-for-profit. To aver that business decisions and relationship decisions are on opposing ends of some rationality continuum is an insult to businesspeople, as well as the readers of the articles that directly or indirectly imply such a contrast. Business is ALL about relationships.

As such, Peyton leaving Indianapolis was a relationship AND business decision. The two are inextricably linked. I am sure that the powers that be (OK, might as well say it—Mr. Irsay) recognized that this was not a decision about just dollars and one person, or even A Tale of Two Quarterbacks (Mr. Kravitz, a great title idea for a book you might publish in the future on this chapter in Colts history!).  The relationships involved extend to the team, the community, and the public perception of the NFL overall. We can only assume that someone of Mr. Irsay’s experience and savvy fully understands that we know it is about more than money. Do people pay crazy amounts of money for tickets because of the “product?” For access to the good value beer, hot dogs, and NFL gear? I think not—it is to be part of an experience that gives meaning to our lives. Anything that reduces that to a “show me the money” mentality really misses the boat. So I trust that the decision here weighed these intangibles appropriately.

Corporate America has gotten a bad rap over the last few years as being self-indulgent, greedy, and full of hubris. This is a far cry from the majority of entrepreneurs, managers, and corporate leaders I have had the opportunity to know and teach or work with over the years. So yes, this may have been a business decision, but relationships were first and foremost—and to associate “business decisions” with a lack of soul, devoid of sensitivity to the people involved, is inaccurate and unjust.

A closing note…I look forward to cheering for Peyton Manning wherever he ends up. I also suggest we not hold Andrew Luck, assuming he is the choice come draft day, to any specific expectations or blame him or the Colts organization if he does not measure up to #18. He is by all reports a promising quarterback and a fine young man—let’s let him decide how he will express that in coming years.

An article in the Indy Star a week or so ago caught my attention. The headline reads: Gum may not stick around. My first thought was, “What are they talking about? I love gum.” Well, hold on. The main thrust of the article is that gumball machines are falling out of favor. While I was surprised to discover that only 27% of gumball machines dispense gumballs any more, it does make sense. Those huge gumballs are not really a great experience – they are huge and sometimes hard to bite into. When you do bite one, you sometimes discover that it was kind of stale. But even worse, you get a big, immediate shot of sugar that quickly disappears. Instead, you are left with a flavorless bit that’s often difficult to chew. So, I do get why we are not chewing too many gumballs any more.

But, the end of the article suggests that total gum sales are down in 2011. So, this data also made me pause. How is it that Americans are chewing less gum than they used to? So, I set my undergraduate marketing degree students to figure out what’s going on. We started by brainstorming what needs chewing gum fulfills, that is what job do people hire gum to do? Here’s what we came up with:

• Freshen your breath
• Remove food from your teeth after eating
• Give you something to do when you are bored
• Stave off hunger so you can avoid calories
• Keep your mouth wet when you are thirsty
• Help you quit smoking
• Get your vitamins

Then, we started thinking about all of the alternatives to meet these needs. It turns out that there are lot so alternatives. Think about some of the new choices we have:

• Mints and Mouthwashes – there are plenty of new choices here including all kinds of long lasting ones. They’ve innovated functional features too.
• Anyone hear of Wisps, the baby on-the-go tooth brushes?
• iPhone and other smartphone apps – I don’t know about you but I am almost never bored when I have my iPhone.
• Low cal snacks – hey the snack people discovered people were worried about their health and we have an explosion of 100 calorie, baked and other better for you options.
• Waters – what kind of water do you like: tap (on the go Brita filter bottles), flavors (any, and I do mean any flavor can be found), and even vitamin-enhanced

This is one of the ongoing challenges for marketers. Part of getting your marketing degree is learning how to figure out who your real competition is. Your real competition is always changing. It’s not just the alternatives in your own product category you have to think about. You also have to monitor all those options that can substitute for your category and do the same job you do. The customer is hiring a product after all, not a product category. So, think more broadly – what other choices are preventing your brand from being chosen?

As I argued in my last blog post, transportation in the U.S. has only experienced modest and incremental gains over the last 50+ years.  However, I think that will change in the next 10-15 years.  The reason will be the rise of the driverless (or autonomous) car.

If you're not awareof the new technology, Google and a number of car companies have been testing out self-driving vehicles for a while now.  In fact, Nevada is beginning to issue special license plates for vehicles that are experimentally self-driving.  Google's automated vehicles have logged over 100,000 miles on California roads (with a human inside just in case).

The reason I am so optimistic about this phenomenon is that it has the potential to coexist with our current system of human drivers.  Most proposals for massive change in the transportation system (think high speed light rail or even electric cars) require that a large percentage of the population adopt it quickly.  This is because that is needed to overcome the large investment required.  And the incentives don't exist.

In the case of autonomous cars, there are few network problems to overcome.  You can keep your Ford pick-up truck, while my Audi drives itself right next to you.  The adoption of autonomous cars can be phased in by market forces, rather than relying on a huge investment by a government entity.  This takes the biggest barrier to adoption away.

And the benefits will be enormous.  In 2009, there were 10.8 million auto accidents and 35,000 fatalities in the United States.  While cars have gotten safer leading to declines in the accident and fatality rates, the growth in technology may mean drivers are paying less attention.  (Those of you reading this blog while driving down I-65 at 70 mph, please put your phone away).  While there may be a significant test period, it is hard to imagine that autonomous vehicles won't have a much better safety record than human driven cars.

Further, driverless cars can do a better job of avoiding traffic jams and not creating them.  Get a large majority of autonomous cars, and suddenly the traffic problems may ease up.  Other benefits include the ability to turn the car into a mobile office.  That hour commute to the office may be the perfect time for checking e-mail, grading homework, or doing anything except actually driving the car.

Further down the road, when cars truly drive themselves with nobody in them, there may be little reason to own a car.  After all, car sharing services like Zip Car already make it convenient to share a car rather than owning one.  Imagine what happens when you can pull up an app on your iPhone 10 (or maybe iPhone 20) and have the Zip car drive itself to your door within a couple minutes.  Suddenly, you have something that looks like a massive public transportation system, with automated vehicles driving you wherever you need to go.  The savings in time, money, energy, and lives will be absolutely remarkable.

Of course, not everybody agrees that this change is imminent.  I agree that there are challenges (legal, regulatory, and consumer acceptance) that must be overcome.  The first time an autonomous vehicle is in a fatal accident will create a huge debate/problem.  However, I think these problems will be overcome, and once adoption begins, I believe it will happen very quickly.  The idea of manually driving your car will be as antiquated as manual transmission vehicles have become.

Ten years from now, self driving cars will be widely available.  Twenty years from now, they'll be all that is available.  I can't wait.

 

Like any other field, business has its own language, cultural references, and media.  If you want to speak the language and get the inside jokes, you need to spend some time immersing yourself in the ideas.  So I humbly present to you the "B-List", which is my recommendations of books, movies, websites, media, and general stuff that may be of interest to you.

This month,  I'm focusing on Spring Break.  Here is what you might want to be reading, watching, or consuming over the month of March, especially if you have a free week in the middle of the month:

1.  Switch, by Chip and Dan Heath.  This book is phenomenal because it works on so many different levels.  The subtitle is:  "How to Change when Change is Hard."  And when is change (for the better) not hard?  The over-riding theme of the book is that you have a rational self and an emotional self and that any change that gets made has to deal with both.  The authors provide a guide for making change along with dozens of examples that resonate with readers.  The great part is that it works for personal change (e.g. how to motivate myself to exercise) to organizational change to change at a public policy level. 

2. Boiler Room (2000).  A classic business movie about a 23 year old guy whose illegal apartment casino gets shut down.  So he takes a job as a broker in a high pressure, high intensity Boiler Room brokerage, where he has to convince new clients to sign up using the time honored tradition of "smiling and dialing."  Good performances by Giovanni Ribisi, Ben Affleck, and Vin Diesel.  Put it in your Netflix queue, and when your roommates ask you why you're sitting around watching movies, tell them your studying the financial services industry.

 3.  RadioLab (www.radiolab.org) is a podcast and radio show about all things science.  The hosts explore many areas of science, history, sociology, psychology in short or long podcasts that are ridiculously engaging.  OK, so it's a little nerdy (NPR and science) but the stories are extremely well done.  What does it have to do with business?  Nothing and everything.  Load it on your iPod and listen to an episode or two in your car as you drive around.  As entertaining as Bob & Tom and not quite so juvenile.

 That's the B-List for this month.  I would love to hear your thoughts about what the essential books, movies, TV shows, podcasts, websites, etc. are.  Let me know what makes you laugh, cry, think, etc.  Post them in the comments or e-mail them to me at kyjander@iupui.edu.

B2B Video Provided by Kelley's Office for External Affairs:

Written by Carly Griffin, Senior Marketing Student

I can honestly say that this past Wednesday was the most fun that I have ever had on the second floor of the Business Building. For the past five years, the Kelley School has hosted a student engagement event for students, and this year’s theme was Backpacks to Briefcases (B2B). As an intern for the Kelley Office for External Affairs, I had the privilege of coordinating the logistics of this event.

The goal of B2B was to educate Kelley students about reaching important milestones while progressing through their college years.  Representatives from the Office of Student Financial Services, Kelley Academic Programs, the Kelley Career Planning Office, Kelley Indianapolis Student Government, and First Year Programs all attended and gave us important real-life tips for success. For example, Financial Services wanted to make sure that students in their junior years knew how to calculate their spending habits and create appropriate budgets. Financial Services also wanted seniors to be aware of their credit reports and how to read them correctly.  

In addition to the educational information provided during Kelley B2B, there were opportunities for students to be involved through social media outlets. A Twitter hash tag (#kelleyindyb2b) was available to collect student comments all day long. In addition, Kelley students were invited to participate in a Facebook photo contest by posting creative photos of their backpacks on the Kelley Indianapolis Facebook page.  The winner took home a leather Kelley briefcase.

Students were also invited to participate in the backpack weighing contest that took place on the second floor throughout the day. The winning backpack weighed in at a whopping 34.3 pounds!

For me, B2B was more than just take-home knowledge. Planning the event provided me with real-world experience and allowed me to network with people I would have never had a chance to know otherwise. I worked closely with Angie Meyer in the Career Planning Office. After meeting and talking with her, she asked me to run for secretary of Kelley’s Student Government. It felt good to think that only after meeting me a time or two, she trusted me to do a great job for this organization. I ran for the position, and you are now reading this blog written by the secretary for the Kelley School of Business Indianapolis Student Government!  In addition, I worked on B2B plans for the Academic Programs Office with Carly Grennes. She is academic advisor for the Kelley undergraduate program. After our collaboration on this event, Carly nominated me to the IUPUI Top 100 Program. I am excited to share that I am pursuing this nomination.

I have never been more proud to be a part of the Kelley school than I was during the Backpacks to Briefcases festivities. This opportunity showed me that it’s important to be engaged with student activities while completing my college degree. Not only did I gain invaluable experiences and relationships, I had a lot of fun!

As many of you know an undergraduate internship is a vital experience to do when in college. I know in many classes students often say, "When am I ever going to use this", and "Why am I learning this." I used to be this person as well. I have learned, having two internships, many of the things we learn in class are actually used on the job. A job is different than the classroom, but much of the subjects learned in the classroom do apply to the job setting. 

I now sit in class and I understand what the teacher is talking about and I am able to apply the lesson to what I would do at work. I feel as if I can participate more and really interact in the classroom. Students need to take part in this experience to see if this is the path they really want to take. Kelley Careers Online is an extremely helpful resource when looking for an internship. It is how I obtained both of mine. I encourage all students with an internship or not to take a look and see if you can find a internship, because it is the best experience to take a part in at college.

Why are we still stuck driving to work and school everyday?  In my lifetime, we've had enormous change in so many aspects of our lives, but I still get where I'm going in the same way I did 20 years ago.

In many ways, the slow pace of change in transportation has been a disappointment for many of us.  If you think about it, very little has changed since the 1950s.  Yes, we have more and larger interstates, and nicer and faster and cheaper (in real terms) cars.  But all of these changes have been incremental.  Our world is incredibly different than it was 50 years ago, but our transportation systems are little changed.  We are still driving our own gasoline powered cars whereever we want to go.

Economists have an explanation for why change has been slow.  Transportation has a lot of what are known as "network effects."  Network effects occur when the value of a good is dependent on how many others use that good.  Facebook is a classic example - the value of a Facebook account increases as more people use it, because you now have more friends to connect with.  The network effects in transportation are slightly less obvious, but they are still important.  In our case, the more drivers we have, the more incentive we have to build more roads.  The more (and better) roads there are, the higher the value of the automobile.  By using taxpayer money to build roads, the government  has been increasing the value of cars and trucks.

Likewise, the more gas stations there are, the easier it is to find one, the easier it is to drive a car around. While this might seem like a  trivial example, it is a problem that is preventing a wider adoption of electric cars.  If there are few re-charging stations for electric cars, then few people want to buy one.  But if few people buy electric cars, then there is no market incentive to invest in re-charging stations.  So the network effect prevents the adoption of electric cars.  Economists describe this as "lock-in" - we are locked in to gasoline powered cars.  That is why the "hybrid" is so successful, it doesn't require any new network to power it.

Economists also study network effects to understand public transportation.  Some in Indianapolis suggest that we should invest in better public transportation, including a light rail system between downtown and suburban areas.  However, it is unlikely that this will be successful.  The reason is that we will never overcome the network problem.  The network problem is that you can't afford to invest in a great light rail system until many people are willing to use it, but many people won't be willing to use it until you have a great system.  Since we have already invested in roads and cars, it is too costly to have the significant investment required to create a light rail system.  You need a system in which public transportation is popular and extensive (New York) or in which you rely on cars (Indianapolis).  We can't afford both, and once one is in place, it is hard to replace it with the other.

We are "locked in" to our current system.  As a result, we see a transportation system that hasn't changed in 50 years.  And efforts to massively overhaul it are likely to fail.

However, I see radical change coming (relatively) soon.  The reason that this time is different is because the radical change won't have to overcome the network effects in transportation.  And, I won't have to drive myself to work everyday. 

Next blog post, I'll expand on how I think the system will change. 

When people think of ice breakers, usually the thought that comes to mind is some sort of game or random topic to help make the formal atmosphere more relaxed. I started a new job a few weeks ago and like with any new job there is that moment where you make a connection with your new co-workers through some sort of ice breaker. I wish I could say that I spontaneously came up with this exciting topic that just drew everyone in, but that was not the case at all. In fact, I didn’t say anything; my IU Kelley School of Business water bottle did all the talking. The person who was training me looked over and was like “Oh, you went IU?” She got excited and told me she was IU alum as well and mentioned there were a few other recent IU alums that work with us. 

We all clicked right away thanks to my IU water bottle. There was definitely a sense of school pride amongst everyone. Who knew a simple gift of appreciation from the IU Kelley School of Business, Office of External Affairs would become my ice breaker. I was immediately at ease knowing I was surrounded by my fellow IU alumni. 

Coincidently, later that same day in the office kitchen, I ran into IU Kelley School of Business Indianapolis alum that I had several classes with before. It took me a second to realize who she was, but I just decided to introduce myself right away and when she said her name it clicked. I remember she used to twirl her hair in class all the time.  She laughed as she admitted that she was very well-known for that habit.  It was quite exciting when I kept meeting all the IU alumni working at the same company. There was an instant bond based on the fact that we all attended the same University. 

 The seemingly insignificant became very significant  The water bottle that I just happened to leave at my desk and something so trivial that I remember about somebody I went to school with sparked conversation. People often forget that most of the time networking involves just the simplest icebreakers.  Meeting new people can be nerve wrecking sometimes, but remember not to over think it and let it be organic. Sometimes it is just that simple.

Do you know that Kelley School of Business Indianapolis is sitting square in the middle of the startup revolution?

Thousands of people are getting in on the startup love by pitching ideas, sharing feedback, and connecting with others at startup events that are drawing crowds of hundreds of passionate start-uppers.