Hobbled by Recession, Cleantech Still Takes the Investment Crown

On September 30, 2009

Hobbled by Recession, Cleantech Still Takes the Investment Crown

Venture investors love cleantech, to the point of investing more there than they do any other industry, including biotech and the internet. That's the latest word from the Cleantech Group and Deloitte, which track investments in the sector on a quarterly basis. Granted, the word "cleantech" has come to encompass a lot. The third-quarter study includes a breakdown of investments by three sub-categories. Solar won out with $451 million, while transportation (including batteries and biofuel) took $383 million and green building materials brought $110 million. The other $646 million of the $1.59 billion total poured into a bunch of other ideas, like geothermal and wind. Laudatory statements aside, cleantech is still going through a rough period. The study notes that...
On September 30, 2009

Forwarding Is the New Networking

Michael Schrage recently wrote a post on this site about the importance of forwarding information as a way to enhance network relationships. He's right about this, although the title — "The Disadvantage of Twitter and Facebook" — is misleading (and inaccurate, since people retweet things all the time — but sadly, editors know that anything with Facebook and Twitter in the title gets a lot of page views and retweets). Forwarding is the new networking. The fact that you can't do it easily on Facebook is about as relevant as the inability to do it over the telephone or the Dictaphone.

OK, it's not really the new networking, since it's been going on for more than a decade now. Smart networkers saw early on that forwarded email content was a way to nurture network relationships.

In 2005, Rob Cross, Sue Cantrell, and I found evidence of it in some research we did on knowledge workers in four companies. The highest performers in those companies (as identified by their performance ratings) were disproportionately good networkers. They had more people in their networks, were more likely to be sought out by others, and were more likely to exchange valued information with their network members — all compared to average performance workers. They consciously cultivated their networks — and not by handing out business cards at "networking events" or by issuing LinkedIn invitations. They offered information and other items of value to their networks.

Some of the high performers we interviewed specifically mentioned that they did large amounts of selective forwarding. That is, when they saw an online item that they knew would be interesting or useful to a member of their network, they forwarded it. It's a way of saying, "I know what you're interested in, and I'm thinking about you."

Of course, you can go too far with forwarding — as both a forwarder and a recipient of forwards. Here are a couple of things to avoid:

Don't be a mass forwarder. Many of the people who commented on Michael's post said they got too many indiscriminate forwards. I would guess that most of those are sent to lists, not individuals. Forwarding to a list (or retweeting to a list of followers, BTW) cheapens the networking value of the act. It's the online equivalent of finding a credit card offer from Capital One in your mailbox.

Don't forward items you believe are humorous to a large list. Why? Because it's a good way to offend someone — chances are good that someone won't find it funny at all. And some people don't like to waste work time on jokes, cartoons, funny videos, and so forth.

Being a recipient of forwarded information can be rewarding socially, but it's not a substitute for a personal information strategy. A number of years ago a GE executive told me, "I only read articles that other people forward to me." That seemed a haphazard way to acquire the content you need to do your job effectively.

When we found in the above-mentioned research that the best performers were the best networkers, I wondered which way the causal arrow went. Did their high performance help their networking, or did their conscientious networking help their performance? I always suspected that it was the latter.

On September 30, 2009

Talking to IHG’s VP of Loyalty Programs on the Psychology of Point Redemption

Recently, IHG (parent company of the Holiday Inn and Intercontinental brands, among others) quietly rolled out a new feature in its loyalty program that allows members to use points to buy flights directly. There's nothing particularly innovative about this change, but the conversation I had with IHG's VP of Loyalty Programs Don Berg was a fascinating look at the psychology involved in customer point redemption decisions.
On September 30, 2009

Insurers Profit When Hurricanes Hardly Happen

Each quarter newswires do their traditional "earnings prewrite," quoting analysts on how an industry is faring. Not surprisingly, this quarter's prediction for property and casualty insurers is positive. And, if anyone needs reminding, it's because there weren't any hurricanes troubling our coastline, defying the prediction by the National Oceanic and Atmospheric Administration that four to seven major storms would hit this season. Bloomberg News has done a comprehensive  job of explaining what's happening, and pinpointing the company that will profit the most by this good news: struggling American International Group. Others that will benefit include Allstate, Chubb and Travelers, all of whose primary focus is insuring homes and businesses. Bloomberg also quotes an analyst with another intelligent point; property insurers,...
On September 30, 2009

Just Jack! at The Business Beat

Our company founder, Jack Covert, talked with Penguin’s The Business Beat about the book The Smartest Guys in the Room by Bethany McLean and Peter Elkind. Ironically, Jack questioned whether or not to include the book in his 100 Best Business Books of All Time, co-authored with Todd Sattersten. However, after spending more [...]
On September 30, 2009

Why You Should Worry about Water in Your Supply Chain

What is the next critical environmental supply chain issue? Water. The linkage between water and business was a hot topic at the August 2009 Stockholm World Water Week. Bjorn Stigson, president of the World Business Council for Sustainable Development, singled out supply-chain water use for specific attention. As fresh water becomes more scarce and supplies uncertain, how companies use water and where it comes from will increasingly affect their business risks and opportunities.

Consider how global brewer SABMiller is evaluating its supply-chain water use. In August, the company, in collaboration with the World Wildlife Fund, released a landmark report titled Water Footprinting: Identifying & Addressing Water Risks in the Value Chain. The study evaluated the water footprint of the entire value chain for SABMiller's beers in South Africa and the Czech Republic, from crop cultivation and processing to brewing and distribution, while highlighting both direct and indirect water use. As one would expect, the footprint is dominated by the agricultural component. SABMiller now understands which parts of its supply chain could be threatened by water scarcity or poor water quality in the future, and is better positioned to develop strategies to address these challenges.

Supply chain water footprinting is not just confined to the beverage sector. Borealis (a plastics materials provider) and Uponor (a plumbing and heating systems company) have initiated a study of the water footprint in the plastics value chain, from raw materials to plumbing and water systems installed in a home. The goal is to reduce resource use in product design and manufacturing in addition to developing water-efficient products.

Although the process and protocols for determining a company's water footprint are not as well developed as carbon accounting, procedures are quickly being refined and multinational companies are making business decisions based upon preliminary evaluations. Energy, water and carbon footprinting across the entire supply chain are essential in evaluating business risk. The time to start measuring the amount of water in your supply chain is now, before water becomes a business constraint to operation and growth.

Is your company evaluating its supply chain water use?

William Sarni is founder and CEO of DOMANI and has 30 years of experience in providing sustainability and environmental consulting services to private and public sector enterprises.

On September 30, 2009

IBM Declares War on Standards Process

I had missed this last week when it first came out, but IBM has essentially declared war on the technical standards process. The words seem supportive enough, but when you read between them, you can see that a systematic round of arm-twisting is likely about to happen.
On September 30, 2009

Super Smart Charts and Graphs: Let Excel 2007 Figure Out the Best Way to Display Your Data

We all know that Excel can make some gorgeous charts and graphs, but if you are like 30 Rock's Liz Lemon and don't know your scatter plot from your triangle graph ("I don't know. It sounded real!"), then you should let Excel analyze your data and choose the best kind of chart all on its own. Actually, Excel will need a little help: Chart Advisor is an add-on that automatically creates charts based on your data, requiring no charting expertise from you. It's actually pretty neat; just select a cell in your array of data, and Chart Advisor generates a number of chart options for you. Find the one you like the best and then customize it in a number...
On September 30, 2009

Beyond Headlines: How to Get Your Audience to Read Every Word

Whether you’re trying to get on the front page of Digg or just angling for a sale, writing magnetic headlines that grab your readers’ attention is everything. But once you have their attention, you need them to read every word that you write. You need to craft an opening made up of an [...]
On September 30, 2009

Sales Tool: Are You Ready to Close?

Here's a quick way to assess whether you're ready to close.   Before asking for the business, ask yourself the following six questions (YES or NO). Have you already helped the customer in some way? Does the customer think your offering is unique? Does the customer consider you a trusted authority? Would buying support the customer’s stated self-image? Does the customer know peers who’ve bought from you? Does the customer like you personally? For each "YES" answer, give yourself 1 point, except for #6, where the "YES" is worth 2 points. You scored 7. You are ready to close.  Ask for the business. You scored 4-5. You're not done selling yet.  You need to work harder to position yourself and...