Enterprise sustainability in the real world...

FICO is on its way to reduce its carbon footprint by 50% over three years with no incremental budget, only leadership and vision. This Forbes video with Quentin Hardy is a quick exploration into how it all happened!

Three ways to shrink Systemic Risk

Wikipedia defines “financial systemic risk” as, “the risk of sudden collapse of an entire system or market…due to potentially catastrophic instability in that interlinked and interdependent system or market.” That’s a fine definition, but few of us need to look it up. It’s been nine months and counting since systemic risk erupted, and the global financial system is still tiptoeing around the smoking crater. As the worst recession of our lifetimes grinds on, institutions and governments are working feverishly to build strategic and regulatory protections against future systemic risk cataclysms.

In my view, government regulators and financial executives will have the greatest chance of success in managing and mitigating systemic risk if they understand and act on three related lessons that are emerging from the trauma that began in the autumn of 2008:

 First, beneath the fearsome complexity that can obscure the working of markets, the value of all financial relationships is still defined by the quality of the underwriting – defining underwriting in the broadest possible sense. The old rules still rule: Know your borrower. Know your lender. It’s a simple concept, but the market environment in recent decades has made it harder and harder to execute. We must repair the markets in a way that enables 360-degree underwriting based on clear, transparent, trustworthy data and relationships.

 Second, of all the characteristics that define economic activity, connection is the most important. Institutions considered “too big to fail” are in reality “too connected to fail.” The web of interdependencies that girdles the globe, linking the boardrooms of Wall Street to the kitchen tables of Main Street, can be the economic system’s greatest vulnerability – as Nassim Taleb argues in The Black Swan – or its greatest strength. Job No. 1 for leaders of the world’s financial institutions and market-regulating bodies is to design the architecture of systemic connection to assure strength. http://www.youtube.com/watch?v=Un2Ve-8f3W4

 Third, despite the enormity of the task facing us, there is a good place to start where we can gain swift traction, and that is with microdecisions – the innumerable individual economic decisions financial professionals and consumers make every day on a global basis. To be clear, I’m not talking about trivial mini-decisions. Microdecisions are the fundamental building blocks of the economic system on all levels. “This [financial] crisis started one mortgage at a time,” Dr. Elizabeth Warren, the Harvard Law School professor who chairs the Congressional oversight panel on government bailout spending, told The New York Times on June 18.

Where in the World are Laure Manaudou and Hope Solo?

Laure Manaudou is a French Olympic, European and world champion swimmer. Hope Solo is a goal keeper for the US Women’s National Soccer team. Both are very successful athletes whose notoriety has reached far beyond their respective sports. Laure Manaudou‘s new found fame was generated by a humoristic piece entitled “Laure Manaudou Sex Video” on YouTube that drew more than 1M viewers. The joke is that the video was about monkeys and fortunately not about Laure Manaudou. Because of all the attention it garnered, Laure Manaudou was also in the top 5 searches on Technorati for quite some time…

As for Hope Solo, she gained tremendous publicity through her temporary exile from the U.S. Women’s National Team. Indeed, her exile became the dominant story line at the 2007 FIFA Women’s World Cup. Unbeaten Hope Solo was benched by the coach in favor of veteran goalkeeper Briana Scurry just before a crucial semifinal game against Brazil that the US ended up loosing. USA today reported that this incident drove up ESPN’s ratings and filled blogs and comment pages with a passion not seen since the big USA win at the 1999 FIFA Women’s World Cup and Brandi Chastain’s jersey toss. In addition, there was a back-story to this incident recounting Hope Solo’s relationship to her father and his tragic passing a few months before the World Cup.

I’m relating these two “soap” stories to illustrate how public attention – though ever so short term- is driven by what I’d call the phenomenon of “Tribal Voyeurism”. I believe that it is critically important for B2B marketers to research and understand the mechanics of “Tribal Voyeurism”. Indeed, the glaciers between the B2C and B2B worlds, if they ever existed, are definitely melting! They’re melting not because of global warming but because, as noted before, of the ever increasing use of social media tools in the enterprise. Moreover, the hyper-mediatized “prosumer” has been completely saturated and become indifferent to the un-imaginative, un-inspired gobbledygook prose dished out by the vast majority of B2B marketers, and is hungering for a more genuine and entertaining style of communication!

I’m by no means suggesting that B2B marketers should become unsavory, voyeuristic, and soapy, but rather that they need to learn to appreciate and accept how professionals access and evaluate information. There are many successful companies that have succeeded in attracting and keeping the public interest either through style, meaning or both. This includes the likes of Apple, Salesforce.com, Facebook, PG&E (yes, the utility company), Interface and many others. So, break the mold. Create. Imagine. And have some fun!