Wednesday, March 2, 2016

Lime green can be beautiful

While I must admit that this is not a color I would personally choose, the new Prius offers an interesting alternative. In an attempt to improve fuel economy without changing any of the mechanical components, Toyota realized that they needed to consider all of the electrical needs for the vehicle. During summer months, air conditioning can cut fuel economy by up to 25%! 

Toyota will be introducing special solar reflective paints in the latest model of the Prius. The special paint uses titanium dioxide particles which do not contain carbon black. This reflection of the sun's rays can keep your car up to 5 degrees Celsius (9 degrees Farenheit) cooler!

While this may sound like a minor difference, if multiplied across the fleet it could make a significant dent in global emissions:

Independent research indicates this is more than a marketing stunt. A 2011 study in the journal Applied Energyfound that a silver car with a solar reflective coating could reduce a car’s “thermal load” by up to 11 degrees Fahrenheit, compared to an otherwise identical black car. The silver car required 13 percent less air conditioning to cool the cabin to a baseline 77 degrees. Another study estimated that putting this kind of paint on every passenger car in Japan could cut CO2 emissions by 210,000 tons a year (the country produces about 1.4 billion tons of emissions annually).
Pair the paint with related tech like infrared-reflecting windows, and the effects are amplified. When the DOE tested a Cadillac STS with infrared-reflective glass (offered by automakers including Mercedes, Volkswagen, and Volvo) and solar reflective paint, it found the car’s cooling demands dropped by 30 percent (from 5.7 to 4.0 kW).


Tuesday, March 1, 2016

Building a perfect team

Throughout our career, we'll be asked to work on teams. They will come in various shapes and sizes. We'll probably be asked to work with people of different skills with different personalities. 

Google is interested in trying to build the perfect team. They opened "Project Aristotle" to study how they might achieve major improvements in their teams. This article in the NY Times discusses what they found.

Early on in the article, you are asked to decide which team you would rather join:

Team A is composed of people who are all exceptionally smart and successful. When you watch a video of this group working, you see professionals who wait until a topic arises in which they are expert, and then they speak at length, explaining what the group ought to do. When someone makes a side comment, the speaker stops, reminds everyone of the agenda and pushes the meeting back on track. This team is efficient. There is no idle chitchat or long debates. The meeting ends as scheduled and disbands so everyone can get back to their desks.
Team B is different. It’s evenly divided between successful executives and middle managers with few professional accomplishments. Teammates jump in and out of discussions. People interject and complete one another’s thoughts. When a team member abruptly changes the topic, the rest of the group follows him off the agenda. At the end of the meeting, the meeting doesn’t actually end: Everyone sits around to gossip and talk about their lives.
Which group would you rather join?
Researchers studied this issue by analyzing hundreds of teams to see if they could figure out what would work and what would not. Because of the wide differences between the makeup of the teams, they couldn't draw direct parallels. Instead, they found common themes. If a team succeeded in some tasks, they generally built on that success and succeeded at most of them. Conversely, if they ran into problems, they generally struggled at everything.

As the researchers studied the groups, however, they noticed two behaviors that all the good teams generally shared. First, on the good teams, members spoke in roughly the same proportion, a phenomenon the researchers referred to as ‘‘equality in distribution of conversational turn-taking.’’ On some teams, everyone spoke during each task; on others, leadership shifted among teammates from assignment to assignment. But in each case, by the end of the day, everyone had spoken roughly the same amount. ‘‘As long as everyone got a chance to talk, the team did well,’’ Woolley said. ‘‘But if only one person or a small group spoke all the time, the collective intelligence declined.’’
Second, the good teams all had high ‘‘average social sensitivity’’ — a fancy way of saying they were skilled at intuiting how others felt based on their tone of voice, their expressions and other nonverbal cues. One of the easiest ways to gauge social sensitivity is to show someone photos of people’s eyes and ask him or her to describe what the people are thinking or feeling — an exam known as the Reading the Mind in the Eyes test. People on the more successful teams in Woolley’s experiment scored above average on the Reading the Mind in the Eyes test. They seemed to know when someone was feeling upset or left out. People on the ineffective teams, in contrast, scored below average. They seemed, as a group, to have less sensitivity toward their colleagues.
Based on these findings, it seems as if Team B would go on to have more success. There were other findings, too:

What Project Aristotle has taught people within Google is that no one wants to put on a ‘‘work face’’ when they get to the office. No one wants to leave part of their personality and inner life at home. But to be fully present at work, to feel ‘‘psychologically safe,’’ we must know that we can be free enough, sometimes, to share the things that scare us without fear of recriminations. We must be able to talk about what is messy or sad, to have hard conversations with colleagues who are driving us crazy. We can’t be focused just on efficiency. Rather, when we start the morning by collaborating with a team of engineers and then send emails to our marketing colleagues and then jump on a conference call, we want to know that those people really hear us. We want to know that work is more than just labor.
....
The paradox, of course, is that Google’s intense data collection and number crunching have led it to the same conclusions that good managers have always known. In the best teams, members listen to one another and show sensitivity to feelings and needs.
The fact that these insights aren’t wholly original doesn’t mean Google’s contributions aren’t valuable. In fact, in some ways, the ‘‘employee performance optimization’’ movement has given us a method for talking about our insecurities, fears and aspirations in more constructive ways. It also has given us the tools to quickly teach lessons that once took managers decades to absorb. Google, in other words, in its race to build the perfect team, has perhaps unintentionally demonstrated the usefulness of imperfection and done what Silicon Valley does best: figure out how to create psychological safety faster, better and in more productive ways.
‘‘Just having data that proves to people that these things are worth paying attention to sometimes is the most important step in getting them to actually pay attention,’’ Rozovsky told me. ‘‘Don’t underestimate the power of giving people a common platform and operating language.’’
Project Aristotle is a reminder that when companies try to optimize everything, it’s sometimes easy to forget that success is often built on experiences — like emotional interactions and complicated conversations and discussions of who we want to be and how our teammates make us feel — that can’t really be optimized. Rozovsky herself was reminded of this midway through her work with the Project Aristotle team. ‘‘We were in a meeting where I made a mistake,’’ Rozovsky told me. She sent out a note afterward explaining how she was going to remedy the problem. ‘‘I got an email back from a team member that said, ‘Ouch,’ ’’ she recalled. ‘‘It was like a punch to the gut. I was already upset about making this mistake, and this note totally played on my insecurities.’’

After all of the study, Google didn't seem to learn anything more than "common sense" might have told them. That said, it was likely still worth the effort to underscore just how important some of the "soft skills" could be--even to the hard sciences and technology!

Monday, February 29, 2016

Analytics and morning coffee

Data can sometimes speak very loudly. The difficulty comes in interpreting what it means. As we become inundated with more and more raw information, the threat of "analysis paralysis" becomes all too real. Despite those pitfalls, there are signs that marketing teams are becoming much more skilled in the use and interpretation of analytics.

This article in Fortune discusses the rapid growth of analytics. Companies are expected to increase their spending by as much as 66% over the next three years. One of the main beneficiaries are companies like Quantifind--a new startup focusing on marketing analytics. 

Fronted by longtime marketing executive David Karnstedt, Menlo Park, Calif.-based Quantifind tripled its customer list last year to 30 brands, including beverage makers Pepsi  PEP -2.29%  and Heineken. Its specialty is sorting social media “signals” and correlating them with sales data. “(Our) platform allows marketers to explore, understand, and change their impact on revenue by serving up the most likely correlations and letting human judgment ultimately discern what to study further and where to take action,” he said.

Mr. Karnstedt goes on to give a demonstration of how their software works:

How does Quantifind’s software work? Without disclosing the name of the customer, Karnstedt offers the example of a quick-serve restaurant that was seeking ways to increase breakfast sales among teenagers. Despite the addition of several menu items catering to that demographic, the company saw very little impact on results.

Using Quantifind analytics, the company dug deeper and discovered a pattern of negative feedback—not from teens, but rather from their mothers. It turns out they didn’t care for the coffee on the restaurant’s menu. “More data also revealed that teens were relying on moms for a ride for breakfast. So the answer to the question ‘How do we sell more breakfast to teens?’ was to offer moms better coffee,” Karnstedt said. The strategy worked. Coffee sales, in particular, doubled.

Sometimes you find things where you are least likely to look!

Friday, February 26, 2016

Foster a sense of purpose

For most of us, there always seems to be an urgent project that demands our attention. Emergencies seem to pop up out of nowhere and force their way to the top of our priority lists. Despite that reality, this article by Kimber Lockhart in Medium discusses a different way to approach the issue that may achieve more lasting results.
Here is how she opens her piece:
I lead software teams. Part of the territory is people (CEOs, stakeholders, customers) wishing we could go faster. I’m often asked — “do you think the team has a strong enough sense of urgency?” or the direct “can you make the team feel a stronger sense of urgency?” More often, the request is more subtle, but just the same — “I’d really like to get this one project done, but it’s not a top priority. Can you hustle to make it happen?”
So, to all those out there wondering, no. I am not going to try to create a stronger sense of urgency on the team. And you shouldn’t either. A sense of urgency isn’t the goal. Trying to create urgency reflects the age-old confusion of hurrying with speed — the misguided notion that if you’re not always hurrying, you’re already behind.
If you’re not working on the product every day (and frankly, even if you are), it’s easy to believe progress should be faster. After all, we all want fast. There’s always more to do than we could ever accomplish, and moving faster would get us there. If the team just hurried a little more, we wouldn’t have to make tough choices.
As anyone who has ever forgotten their keys in an effort to get out of the house on time knows, hurry often backfires. The panicked, frantic pace values action over results and has consequences.

She goes on to point out the many flaws in rushing--shortcuts, sloppiness, lack of creativity. Most of all, she notes that this type of effort is not sustainable in the long run. 
Let’s retire sense of urgency and instead look for sense of purpose. A sense of purpose is a deep understanding of the reasons behind our efforts and a desire to pour in time and energy because that purpose resonates with the impact we’d like to make on the world.
A sense of purpose is immersion in our cause, and allowing that exposure to motivate action. A sense of purpose is about going faster and smarter toward a mission we all see clearly. It’s about using good judgment because we all understand the short and long term implications of our actions on what we’re creating together.
A strong sense of purpose manifests when a software engineer watches a potential customer struggle with a workflow and stays late to make the changes that make it easier. It shows itself when a designer spends their weekend on a few extra iterations because they felt engaged with the problem at hand and want to produce a better solution.
Turns out when you stop looking to create urgency, the passion and purpose latent in your team might just cause the right things to get done at just the right pace.

This one paragraph seems to encapsulate her philosophy:

Your primary job as a leader is to hire the right team, and then to spend time inspiring this sense of purpose. Help people understand the impact of their work, and speed will follow.

Thursday, February 25, 2016

How Millenials (Almost) Killed the Wine Cork

Fascinating article in the Atlantic talking about wine corks. They served well for hundreds of years but have (in recent years) come under attack from screw caps and plastic alternatives. More recent industry attempts to preserve the market seem to be working.



Tips and Myths on Smartphone Battery Life

Smartphones are an essential component of modern life. These handheld devices are vital pathways to communication and information. Outside of their fragility, their one major weakness lies in the batteries that power them. With most models, it's exceedingly difficult to get more than ten hours out of even the largest integrated battery--especially if the device is used for intensive tasks. External battery packs can sometimes double the charge, but at a tremendous penalty in weight and bulk.
Most of us have tried some of the strategies outlined below to help minimize our drain and maximize our time between charges. This article from the New York Times discusses actual testing of each of these key strategies to help separate the myths from the useful tips.

The first paragraphs discuss the current state of battery technology:

So why is battery technology still underwhelming? Plenty of companies have been developing smarter battery technology for years, including methods to increase battery capacity tenfold or charge devices by pulling energy from the air. But lithium ion, the technology that most mainstream batteries are based on, is low cost and easily reproducible while being safe — so we’ll be stuck with it for the foreseeable future, said Charlie Quong, an executive at Mophie, a battery accessory maker, in an interview.

“There’s a lot of investments on all fronts for improving the technology above and beyond that, but I don’t think we’re going to see that hitting any kind of mass market for several years out,” Mr. Quong said. In general, lithium ion improves about 10 percent a year in terms of the amount of energy that can be stored in a given space, which is partly why consumers perceive batteries as being far behind other technologies.

The article goes on to describe the testing they did on the various tips and tricks. They recommended eight tips. I found these two to be most useful:

  • Use auto-brightness for the screen (dimmer screens save energy--unfortunately, they are harder to read)
  • Turn off wi-fi when reception is poor (an established connection is no problem; the constant search for wi-fi is very draining)

I found a few of the myths very surprising.

  • Closing unused apps doesn't always help. This one shocked me. I thought that you had to shut them down to stop them from draining resources. For most programs on your phone, apps in the background are frozen and do not draw power! In fact, force quitting forces the app to reload from scratch which could end up using more power.
  • Don't assume turning off wi-fi will always help. As noted above, established connections can actually save power. It's far more efficient to use wi-fi than cellular data!


Intermountain's Big Bet

The Advisory Board printed an article outlining Intermountain Healthcare. This Utah-based system is at the leading edge in many ways. They have made a bold proclamation:  they will pass on $2 billion in savings to their patients or lose money! Here is an excerpt from the article:

The 22-hospital system is guaranteeing that SelectHealth Share, its new health plan, will cap annual rate increases at about 4%—one-third to one-half lower than typical rate hikes for employer-sponsored plans.
Most health systems would have to skimp on care quality in order to provide such a deal, Abelson says. However, Intermountain stands apart because of its innovative efforts to track and analyze care quality. And many of its contracts are value-based: the system is reimbursed a fixed amount to care for about one-third of its patients, providing an extra incentive to keep patients healthy and costs low.
Intermountain says it will reduce SelectHealth Share's rate increases through $2 billion in savings over the next five years, including about $500 million in 2016.
The article goes on to quote Brent James talking about the program. Full disclosure, I have met Brent James at many conferences in the past and worked with him directly on a few projects.

Some of the tactics will have direct impact on Medtronic. I believe that we were one of the companies mentioned in this excerpt from the NY Times article:

Intermountain’s plan is “the first innovative thing we’ve seen in a long time,” said Dave Jackson, managing partner for FirstWest Benefit Solutions in Orem, Utah. “Share has got everybody at the table — everybody’s got accountability and got things to do.”
Intermountain has already saved money by renegotiating the cost of surgical staplers, pitting a cheaper manufacturer against another and saving $235,000 a year. It saved $639,000 a year by ensuring that heart attack patients get into the catheterization lab within 90 minutes of emergency room contact, thereby helping patients recover faster.
Here is the Advisory Board summary of the overall program (Ben Umansky):

Predictability is huge for employers right now. The idea of tying premium increases to something close to overall inflation is really attractive to a market that's seen health costs far outpacing the costs of other inputs. In fact, much of what employers are doing these days is predicated on a drive for predictability; take, for example, the move to defined contribution benefits: an employer who goes that direction knows exactly what it will pay no matter what happens downstream. Intermountain is responding to that same desire, but in a different way.
Select Health Share is the sort of provider-sponsored play so many systems are dreaming about, and this may be a lesson to other health systems about what they would have to offer in order to demand exclusivity. Select Health Share isn't trading on Intermountain's quality reputation alone, strong though it may be—this credible guarantee of predictable (and reasonable) cost growth is what many others aren't willing (or able) to offer.
This isn't something that happened overnight. If Intermountain hadn't spent years aligning governance, incentives, strategic planning priorities, and so many other factors across both the provider and insurer arms, they wouldn't be able to make this kind of play today.
I've always been impressed with how Intermountain designs its financial incentives to reflect and reinforce the system's strategic goals—from overall financial targets all the way down to individual incentives. It's a system that exemplifies "systemness"—everyone's in step—and that's so important for being able to offer this kind of value proposition to the market.