Archive for November, 2012

NEED, GREED AND SPEED – NEW RULES OF INNOVATION TO PROPEL GREATNESS

November 13, 2012

In the coming decades, “the quest for environmental sustainability and the need to meet the health demands of a fatter, sicker and older population may prove to be the greatest engines of innovation and, therefore the greatest economic opportunity of our lifetimes” according to  Vijay V. Vaitheeswaran author of Need, Speed, And Greed, How the New Rules of Innovation Can transform Businesses, Propel Nations To Greatness, And Tame The World’s Most Wicked Problems and  the Global Correspondent for the Economist magazine.

The author sets about to challenge some of the widely held views about innovation, the role of government versus business, the supposed global crisis and the failure of the world economy.

His book seeks to build a case for rethinking of how the world approaches innovation.

He believes the world stands on a cusp of a post industrial revolution and new rules of innovation will reveal these new principles and practices which will reshape the world’s economy.

This innovation will bring to the market place fresh thinking that creates value for a company for its customers and for a society at large.

This innovation will result in entrepreneurial activity new investment and new jobs.

What motivates idea generators in the new age of innovation is not mere profit – it’s also inspired by the passionate pursuit of purpose, in part meeting societal goals.

The three great forces that drive these passions are – need, speed and greed – the need for the innovative goods or services, the ability for the innovator to receive monetary return for the innovation and the speed in which the goods or service can be made available to the consumer.

These three forces drive the fresh thinking that creates something of value.

Today these changes are undergoing as an unpresented demographic, economic and environmental transformation, as mankind becomes a primarily urban species for the first time in history.

This mass urbanization will both demand faster and deeper innovation and offer the means for getting it; including –

The need for more urban  infrastructure,

  • Responsive political systems, and
  • Higher degree of interpersonal civility.

According to Vaitheeswaran, “the road from [economic] stagnation to rejuvenation results from innovation.

He supports the notion that innovation will be aided by:

  • More STEM education,
  • More immigration,
  • Less restrictive government regulation,
  • Less government interaction, and
  • More accommodative government R & D spending tax policy.

According the Vaitheeswaran, greed is not only good but also does good – if, that is, there are clear incentives to tackle the wicked problems of society.

He believes that many of today’s efforts to support innovation are simply a sham, mostly being a throwback to the failed industrial policy tried in the 1930’s and 1980’s as remedy for a flailing economy.

He supports a more free market capitalist approach that uses need, speed and greed to maximum innovation opportunities.

THE PRICE OF POLITICS – PRESIDENTIAL AND CONGRESSIONAL DECISION MAKING “IN ACTION” – ONE WORD OR TWO?

November 12, 2012

Partisan bickering and lack of transparency are concerns of democracy.

While common place in government today and recognized by elected official and the masses, little is done to “open-up” the “back-room” discussion and negotiations that lead to decisions, not only at the federal level but also at the state and local level.

The Price of Politics is evidence of this trend of secretive discussion leading to decisions that transform daily existence of American citizens.

Bob Woodward does an excellent job showing how complex and secretive Presidential and Congressional policy making is today.

It also tells a story showing how most Americans are excluded from knowing who’s involved and how the process functions.

At no time in history has there been a more complex process of negotiation rendered by government economic leaders, beginning with 2009 collapse of the US economy.

The initial response and those since, demonstrate the complex process of seeking political consensus for remediation policy and actions necessary to reinstate economic stability.

Woodward chronicles the 44 day period during summer of 2011 where President Obama and House Speaker Boehner sought a compromise on tax increases and entitlement budget cuts to prevent further economic calamity.

What’s interesting to many will be, not only the role decision leaders Obama and Boehner but, maybe more importantly, their key staffers and staffers from a host of various unrecognizable government agencies who actually do the analytical work and create  policy that actually results in legislation approved by Congress and the President.

The reader walks away with a frightening revelation – it’s the government policy wonks, career “government betters” to use a label that Indiana Governor Mitch Daniels originated, who are in reality, the “all knowledgeable originators” of government decisions.

Woodward’s accounting, almost on an hour by hour basis demonstrates the role and influence these government betters have on critical decision that ultimately impact the daily life of every American citizen.

He also discloses the nature of the deep divides among multiple interests groups and their ability to channel special interests into a two party stalemated immoveable negotiation situation communicating only “my-way or their-way” “I’m right and their wrong” possibilities.

In today’s real world, as stated by President Obama, “if we are going to frame these [budgetary] debates in way that allow us to solve them, then we can’t start off by figuring out  a) which is to blame and b) how can we make the American people afraid of the other side. And unfortunately that’s how our politics works right now”.

Another form of compromise less confrontational, less policy work driven and more transparent to the average American is needed.

I believe Woodward would agree.

Reimaging Detroit – Opportunities for Redefining an American City

November 11, 2012

Back in the early 1970’s, my first planner job was to count the number of roof-tops shown on aerial photos for traffic zones for a small metro area’s first computerized transportation model.

The model was designed to provide a “base line” for origin and destination auto trip and inter-metro entry/exit commuting data.

This data, with our projection of where, when and the type of future development, would indicate the roadway improvements to correct existing deficiencies.

The transportation analysis would also show where future improvements were needed based on our projected pattern of future growth.

Good stuff!

We built the 25-year metro future land use plan and scheduled the timing and location of major transportation improvements.

Today, other than for a few road capacity and safety improvements none of the grand plans have been completed and the few where started, are not fully completed.

Population growth didn’t happen like local government interests projected.

John Gallagher, in his book Reimaging Detroit – Opportunities for Redefining an American City, chronicles this phenomenon.

This book should be required reading in every planning and economic development educational curriculum.

John sets the stage, not only for stagnate and declining metro growth strategy, but really calls out the pro-growth biased planning education taught to the planning profession.

This pro-growth bias is based on the notion that global and national growth will be distributed, somewhat equally, based on historical trends and propel current population counts upward over time.

This bias means planners must always expand the urban and suburban pattern of development to include land for new commercial, industrial and residential development.

But in many cases, the continuous upward population growth mentality isn’t correct for some metro areas, as John profiles Detroit where the pattern of development will shrink both in size and population count.

This is a must read for anyone interested in American city planning and metropolitan growth.

John Gallagher, a Detroit Free Press real estate journalist does a complete job of chronicling opportunities for remaking of depopulated cities; Detroit being his proving ground.

John asks the tough questions including –

1.  How do cities deal with infrastructure sized for 2 million folks being funded by user fees from ½ the users

2.  How does government provide services to a scattered less dense pattern of physical development.

3.  What do cities do with abandoned no longer needed – formally used but now vacant – land scattered among the depopulated urban pattern of development.

4.  What is the role of regional government cooperation in capacity building that results in new models of government service delivery based more on economic inefficiencies rather than political identity and governmental self aggrandizement?

5.  Is there a need for a new planning mantra, one that encourages economic sustainability by reduction in size and possibly abandonment of infrastructures no longer needed and affordable?

6.  Will there be community planning mindset change recognizing land reuse – a replacement philosophy that encourages rethinking of local government and urban boundaries with the new realities of demographic and population densities.

7.  Will the citizenry recognize the inevitable – that certain cities must adjust their land uses, abandoning no longer demanded or needed uses by current and future population but at the same time offering opportunity for increased open space and reclamation of lost natural amenities – wetlands, forest, agriculture, etc.

8.  How do cities change the populist fallacy that community cheerleading and platitudes cannot change the economic realities of economic dislocation due to lack of jobs and population growth.

9.  The importance of job growth, both the number and local proximity being vital to sustainability of a city……”jobs, like people die-off” and must be replaced by a new generation.  Failure to create jobs, at least at rates necessary to meet replacement quotas will ultimately result in stagnation and in some isolated cases death of the city.

10.  How to create community based economic entrepreneurship and new business formation programs coupling them with existing business inubators and accelerator efforts to ignite the entrepreneurial spirits within the metro area to make significant impact on the availability of jobs and increase personal wealth.

As John “points out” there is no simple one-way story of when the decline in America’s industrial Midwest began. The curse is here today for many Midwest urban areas, especially those somewhat smaller ones disconnected and isolated from the major metro centers.

He also states that today “it isn’t wise or practical to look at growth as our only definition of urban success….smaller can mean better”.

He emphasizes that both government and business leadership must capitalize on assets “in place” rethinking that growth solves all problems.  He advocates applying a new urban planning theory of “right-sizing” as part of the solution to reengineer prosperity.

To make such changes will not be easy. John quotes the Mayor of Turin Italy, who notes “the deeper the crisis the bigger the chance to do change and innovate.

The curse of many metro’s growth and prosperity surely indicates change and innovation will happen.