Carol Bartz has outlasted most CEOs of big companies. She has been chief executive of Autodesk for the past 14 years, when the median tenure is just five years. She led the Silicon Valley software company through economic ups and downs. In May, Ms. Bartz will relinquish her CEO post and become executive chairman. But her longevity as CEO gives her a rare perspective on what it takes to weather mistakes and business cycles and to be an agent of change.
Don’t rest on your honeymoon-period laurels.
When she first became CEO, Ms. Bartz joked that her task was “playing Wendy to the Lost Boys of Autodesk.” The company had one product, profits were sagging and employees, who brought their dogs and cats to the office, weren’t used to answering to anyone. Even by Silicon Valley standards, the atmosphere was chaotic, choking creativity.
Monthly Archives: March 2006
What’s the Biggest Change Facing Business in the Next 10 Years?
In Fast Company’s first decade, we introduced readers to a lot of amazingly smart people. To launch our second, we asked 10 of our favorite brains what’s next–and how to get ready for it.
I think Malcolm Gladwell nails it, business will become much more active in political issues:
“Business has to find its national voice. It has to be engaged in the politics of this country in a way it’s not accustomed to. Right now, executives are very good at saying, ‘Cut our taxes, cut our regulations.’ And they’re really terrible at making far more important and substantive arguments about social policy. It’s time they stopped banging this one-note drum and started saying that a lot of the things that have been relegated to ideology are, in fact, matters of fundamental international competitiveness for this country.
Take, for example, health care. We are ceding manufacturing jobs to the rest of the world because we can’t get around to providing some kind of basic, uniform health insurance. Because of our strange ideological problem with nationalized health insurance, we’re basically driving Detroit out of business–which strikes me as a very counterintuitive, nonsensical policy. The simple fact is that GM and Ford and Chrysler cannot compete in the world market if they’re asked to bear the pension and health-care costs of their retirees. Can’t be done. It’s that simple.
Grow Your Own Oil, US
Researchers hoping to ease America’s oil addiction are turning sawdust and wood chips into bio-oil, a thick black liquid that could become a green substitute for many petroleum products.
Bio-oil can be made from almost any organic material, including agricultural and forest waste like corn stalks and scraps of bark. Converting the raw biomass into bio-oil yields a product that is easy to transport and can be processed into higher-value fuels and chemicals.
“It is technically feasible to use biomass for the production of all the materials that we currently produce from petroleum,” said professor Robert C. Brown, director of the Office of Biorenewables Programs at Iowa State University.
New Rand Healthcare Study
1. We get only 55 percent of recommended medical attention [TC: hey, didn’t an earlier Rand study show us that more care doesn’t translate into better health care outcomes?]
2. “Those with annual family incomes over $50,000 had quality scores that were just 3.5 percentage points higher than those with incomes less than $15,000….insurance status had no real effect on quality.”
This should make everyone uncomfortable, but most of all those who think that access to health insurance is a panacea. Here is the press release, the piece is in The New England Journal of Medicine. Am I supposed to believe the following?:
AMT: Without a Fix, A Time Bomb
Avram Lank updates us on the latest Washington machinations over the Alternative Minimum Tax:
Inflation is the basic reason the AMT is spreading.
Many parts of the tax code are indexed for inflation, including brackets and personal exemptions. However, the AMT exemption is not. So over the years, as everyday people had larger, inflation-driven exemptions under the regular tax code, the gap narrowed between what they owed under it vs. what they owed under the AMT.
Congress addressed the narrowing gap by temporarily raising the AMT exemption in 2001 and 2003. But the last temporary fix expired in 2005, so many more people will feel its sting this year.
Choosing the World’s Best Cheese
Cheese championships are hardly a spectator sport, but cheese-lovers will have a unique opportunity to observe the 2006 World Championship Cheese Contest right here in Madison. Free and open to the public, the contest is slated to take place at the Monona Terrace Convention Center on March 21-23.
While UW-Madison scientists don’t usually compete, they do influence the contest’s outcome. This year, for instance, Mark Johnson, a scientist at UW-Madison’s Wisconsin Center for Dairy Research will join an international panel of judges that will include cheese connoisseurs from France, Japan, the Netherlands and South Africa. Another judge on the 15-member panel will be a Puerto Rican, Leyda Ponce de Leon, who earned a doctoral degree in food science at UW-Madison in 1999.
A Delightful Few Days Skiing at Wisconsin’s Whitecap Mountains
A March visit to Whitecap Mountain
Spring break 2006 presented an opportunity to check out a ski area that was within a reasonable distance (avoid flights) and promised a decent amount of snow. I surfed the web last week seeking such a destination and found Whitecap, a resort that Ski Magazine has posted favorable words on the years. Those reviews, along with a very attractive package ($199 per person for 3 nights, 3 day lift tickets, 2 dinners, 3 breakfast meals, rentals and a one hour daily group lesson) sealed the deal.
Fight Against Farm Subsidies
Scott Kilman and Roger Thurow:
A movement to uproot crop subsidies, which have been worth nearly $600 billion to U.S. farmers over the decades, is gaining ground in some unlikely places — including down on the farm.
In Iowa, one of the most heavily subsidized states, a Republican running to be state agriculture secretary is telling big farmers they should get smaller checks. Mark W. Leonard, who collects subsidies himself and campaigns in a white cowboy hat, told a room full of farmers recently that federal payments spur overproduction, which depresses prices for poor growers overseas.
“From a Christian standpoint, what it is doing to Africa tugs at your heartstrings,” Mr. Leonard told them. Last year, he helped humanitarian group Oxfam International in its anti-subsidy campaign by escorting a cotton farmer from Mali to church gatherings near his farm in Holstein.
Why Don’t More Businesses Use Prediction Markets?
Last week in The New York Times (TimesSelect), Joseph Nocera quoted Robin Hanson as saying private businesses had not made a breakthrough with the use of idea futures. It seems natural to let your employees bet on future business conditions, the success of product lines, or broader questions of corporate strategy. Microsoft and Google and a few other companies have played with the idea, but it does not (yet?) seem to be taking off. Why not?
- Prediction markets threaten the hierarchical control of top managers. It would become too obvious that most managers are idiots, unable to predict the future.
- Prediction markets make a big chunk of the bettors into “losers.” Yet within a company morale is all-important. Businesses proceed by soliciting feedback, and by reshaping their plans to pretend that everyone is on board and has an ego stake in the final outcome. Prediction markets make this coordination more difficult. Once people make bets, they start rooting for their bet to win and for the other bet to lose. They move away from maximizing the value of the firm and develop an oppositional mentality vis-a-vis other employees. Furthermore it is disruptive to have a running tally on who are the winners and losers each day.
Super Target Plans
Madison Alder Zach Brandon posts the latest development plans for Fitchburg’s Super Target.