jimi hendrix, ability, risk, technical, Toby Elwin, blog

Technical ability does little to mitigate risk

Organizations don’t simply run from a strategic plan prescription.  Projected cash flows don’t deliver themselves.  Business units don’t run in a vacuum.  All these efforts take the collaborative knowledge, ability, and skills of people and teams. If you recruit people with evaluation efforts that focus on industry experience, work history, and academic education, evidence shows these human resource tools do not show positive correlation to predict someone’s success within a firm or that a collection of technical wizards would impact a firm’s future success. Technical skill has little to do mitigating operational risk within your organization. Evaluations that include work product, reports, stories, and conversations are qualitative views with only limited insight into someone’s technical ability. Further, these qualitative types of human capital assessments remain highly subjective and are neither quantifiable nor comparative. Only quantitative approaches provide comparative analysis. Important predictive human capital …

In review: Quality communication in social media

December 2010 in review.  A roundup of blogs from the previous month: Quality communication in social media (guest blog) — Helping doctoral students design quantitative research studies as well as analyzing and interpreting data dissertations occurred to me that some aspects of a doctoral dissertation could be applied to social media communications to make information and conversations more rigorous and tractable.  When a problem can be discussed from a quantitative perspective, why not discuss it in a format like a miniature dissertation? Recap:  Emotional Intelligence — There is something more to knowledge.  Something more than being a valedictorian to get along and to succeed.  This something includes self-awareness and relationship awareness.  Is emotional intelligence (EI) more important than IQ?  Here are a series of blogs and sources I’ve written on EI  and the importance of how people, organizations, and cultures succeed …

Fistful of beans 12/22/2010

5 things I’ve seen, read, or thought might seed results: 1.  Is the belief that mergers drive revenue growth a delusion? — McKinsey Quarterly To evaluate a merger’s success evaluate the impact on revenue.  Revenue determines the outcome of a merger, not costs; whatever the merger’s objectives, revenue is what hits the bottom line harder. In a merger too many companies lose revenue momentum as they concentrate on cost synergies or fail to focus on postmerger growth in a systematic manner.  A study by Southern Methodist University of 193 mergers, worth $100 million or more found that only 36% of the targets maintained their revenue growth in the first quarter after the merger announcement and by the third quarter, only 11% had avoided a slowdown against industry peers. Complementary strengths for repeated success successful acquisitions: 1.  Cost disciplines are “hardwired” at …

human capital, risk, Toby Elwin, blog

Risk is an unnecessary (p)art of the deal

To identify where risk is a real part of the investment deal you will commonly hear an equity firm or VC partner claim, we invest in the people. When it comes to costs, human capital usually represents nearly 70% of all operating costs, but most investment firms focus investment decisions and deal valuation not on quantifying the people or human risk, but on quantifying: Market growth, Market size, Expected rate of return, and, Expected risk The decision to invest becomes a decision to assume the correct amount of risk for the projected payoff.  However, the overwhelming valuations of risk remain deeply flawed. Investment deals that fail or under-perform are often attributed to: Misjudge the marketplace risk for the products or Problems with the management of the invested business If management proved they were unable to cope with market place change, …

emotional intelligence, innovation, technical, risk, IQ, Toby Elwin, blog, Dr. Smith, bubble-headed ninny

Innovation, the technical risk to IQ

I see and read so much about offers to teach or facilitate innovation, but what is innovation? Innovation has less to do with technical skill and IQ, then relationships and systems. Innovation is risk; Innovation is dialogue; Innovation is opportunity (also known as diversity); and Innovation is failure and recovery All the above and more.  For certain, thought, innovation and creativity is not captured in a bottle. Professionals in a knowledge economy are not innovative only from the hours of nine to five. What makes someone innovative? Is it IQ and IQ’s measure of problem solving, pattern recognition, and memory? Is it technical skill acquired through study and experience? No, what separates professionals is not IQ or technical skills, but Emotional Intelligence: Studies of people in high-IQ professions requiring advanced degrees such as Ph.D.’s and M.B.A’s for entry into a field, IQ …

bugs bunny, tortoise, hare, Toby Elwin, blog

Emotion versus intelligence — the tortoise and the hare

In my Culture war post, I advocate Emotional Intelligence as a more important quality job interview criteria than a corporate or team culture fit. What Emotional Intelligence means (EI) and does not mean as well as how to discern sides in EI* vs. IQ debate means more than emotion versus intelligence. Where IQ intends to measure the ability to reason deductively or inductively. Much has come to light to say it is wrong to expect the higher someone’s measure of logical reasoning, math skills, spatial skills, understanding analogies, and verbal skills [IQ]. IQ is intended to measure intelligence as if IQ is a proxy for expected success. The alternative key to success measurement found not on in how one thinks, but in behavior and interaction with others using communication skills:  EI. EI intends to measure how you motivate yourself and others and, critically, far …

culture, war, Toby Elwin, blog

Culture war

Does your company have a hiring philosophy to find people who fit into the company culture? Do you interview people to fit into the culture of your division? Do you interview people to fit into the culture of your team? Why do we look for people who will fit in when what your business needs are people who stand out.  What good is it to hire for culture fit when we work and live in a dynamic world where change is constant?  You may not want change in your personal life, but you better be building for change in your professional life. Don’t believe in change?  Look at the Fortune 500 from 1998, how many companies are no longer on the Fortune 500 2008 list? Do the same with the S&P 500? The Russell 2000? The English Premier League? Nice …