archive: global

What’s All The Fuss About this New Sheriff at Downing Street?

Thursday, July 15th, 2010

With an British mother and an American father, comparing the US and Great Britain is simply a way a life in my family . . . plus it gives me a bit of street-cred in this department. In this story, in my opinion, the Brits clearly win!

Sunday mornings with Fareed Zakaria on CNN are sacred in my house.  Which basically means that my kids and husband abandon me for that hour.  More often than not, I’m highly tempted to blog about one or two of the topics Fareed covers.  I typically resist, because I rarely disagree with Fareed and over time I’m afraid I might come across as a “Fareed Groupie”, which could tarnish my image of a self-thinking, intelligent, strategic, modern woman.  That said, this week, I am giving into temptation. I simply must blog about this new British government and the 39-year old George Osborne (Chancellor of the Exchequer – Secretary of the Treasury to Americans) whom I found to be slightly pompous (expected), highly intelligent (expected), but unexpectedly refreshing and on-point in his ideas around what people really want from their governments.  I personally, think the US Republican party could take a lot of cues from the new conservative sheriffs at Downing Street.  As an Independent, I actually prefer it when both the Democrats and Republicans are acting wisely as it makes for better candidate options and more solution oriented action.

If you missed the show, it’s easy to watch or listen on demand.  Just click here.

Just to add my own touch to the conversation, and keep up my image, here are the four primary reasons why I like what I heard from Osborne and feel strongly that this is the direction that successful politicians will have to take (regardless of party) to be successful in the future.

Not Afraid to Act

Osborne has pledged to the British people that he will not hide hard choices from them and he will make them.  He has clearly lived up to this campaign promise with his austere budget that is getting a lot of press. He feels strongly that the public wants a government who can admit when there is a real problem, and work quickly to get it fixed.

Proper Leadership

The kicker here is their assumption that the public can and should act as an intelligent deputy to a sheriff who is willing to make and stand behind decisions regardless of which direction the political winds are blowing. This new conservative party clearly recognizes that the British public clearly understands there is a debt problem, and that the country has been living beyond its means for some time, and so they are willing to take it on as their first priority.  They also realize that not only Great Britain, but Europe, requires proper leadership to bolster their image and regain the world’s confidence in their ability to pay their own way.

Collaboration is Not a Death Sentence

Osborne speaks of forming a proper coalition government where the other party holds seats in the cabinet and how the real benefits of diversity in Parliament are less about looking different and more about being different and thinking different.  One of the best statements Osborne makes in Fareed’s interview is, “We can’t abandon whole areas of policy to the Left in British politics.  There is no reason why the Conservative Party should not have a progressive policy on climate change or be interested in issues of poverty and equity in our society and have answers to those issues.”

Open, Open, Open

They are open to new ideas, new views and anyone who can come up with a better way to reach a common goal.  Osborne indicated that he constantly seeks out second opinions and alternative views.  He encourages large numbers of people to come into meetings and say what they want to say, and understands that listening is a large part of the job.  His office recently asked the broader group of public servants for their ideas on how to reduce budgets in a way that doesn’t damage the frontline services people receive.  They received over 65,000 responses in a couple of weeks, and had some of them around to Number 11 Downing Street for a chat recently.  Interactive governement . . . what a concept!

I’ve been saying for years (just ask my friends) that the politicians in the US are simply making things worse and what most people really want is an entirely new breed of politician that is much more suited for the 21st century.  We need politicians who care less about party line and more about solving problems. We need politicians who can explain both sides of an issue, without bias, and why they believe their decision is the best option.  We need politicians who can work with other politicians to get the job done and stop wasting the public’s time and money on petty politics.

As much as I love they way in which this new and refreshing British government is behaving, I would certainly caution them that the best solution in today’s environment is likely a combination of austerity in some areas and stimulus in others.  Because western politicians failed to play the austerity card when times were good, we are all now stuck in a precarious position.  The equation is really quite simple and it works for government, companies, and at home.  When times are good you pay off your debts, make smart investments, and put a little under the mattress for a rainy day.  When times are hard you dig out your mattress money and stretch on credit a little if necessary.  If used responsibly, credit can be a very stabilizing element in an economy.  When abused, as we all now know, credit can backfire as surely as a 1970’s MG.

One of the things I love the most about this new government is the fact that they aren’t letting fear run the show.  They are taking a stance, creating a strategy, and they are willing to listen to other ideas.  The longer we let fear run our households, our businesses, and our politics, the longer this era of uncertainty will linger.  It really is that simple.

Posted in Courage, economy, global, leadership, political, social, strategy | 1 Comment »

Redeveloping the Real Estate Industry

Wednesday, June 30th, 2010

The opportunity to redevelop the real estate industry such that it contributes to the solutions the world is seeking, instead of continuing to pile on to the multitude of challenges, is huge. Such challenges include the energy crisis, climate change, natural resource preservation, population growth, urban sprawl with ineffective infrastructure, and a lack of sustainable growth practices. Those with the courage to see these opportunities and act upon them quickly will realize tremendous competitive and economic advantages.

Indulge me for a moment as I try to integrate the big picture of how the real estate industry can play a significant role in addressing the challenges we face as global citizens. Then, I’ll offer some details and specifics that outline a new approach to real estate.

Tom Friedman says in his book Hot, Flat, and Crowded, “We Americans are in no position to lecture anyone. But we are in a position to know better. We are in a position to set a different example of growth. We are in a position to use our resources and know-how to invent the renewable, clean power sources and energy efficiency systems that can make growth greener. If we, as Americans, do not redefine what an American middle-class lifestyle is – and invent the tools and spread the know-how that enables another two or three billion people to enjoy it in a more sustainable fashion – we will need to colonize three more planets.”

Real estate investors and developers play a huge role in how communities and cities are constructed, how buildings utilize energy, and what infrastructure and transportation is necessary to connect where we live to where we work, shop, and play. Without drastic changes in how we construct and live in our communities, what’s left of America’s competitive advantage in real estate will continue to fade. Others will take the lead in creating the technology and investment and development models that allow populations and standards of living to grow in sustainable ways that are also grounded in the pursuit of happiness and wellbeing for oneself and the rest of the world.

The global economic crisis should represent the perfect opportunity and context in which to effect meaningful change, unfortunately little is different today than it was 5 years ago in an industry that has endured massive losses over the last 2 years. The only changes fund managers (who ultimately control where and how capital is deployed) appear to be making are to appease their investor base with executive musical chairs, token fee reductions, and maybe a claw-back clause. Their plan is to ultimately convince investors that the world will soon get back to normal. Some fund managers are even sitting out a round or two of fundraising in order to avoid setting a precedent of unfavorable terms with their investors. These kind of non-structural changes or avoidance strategies will, unfortunately, not bring a new mindset, new strategies, creative partnerships, and the innovative models that are needed in the dynamic and interdependent world in which we all now reside. The pace of global change is so great, that the concept of “normal” may eventually become obsolete.

Investors, on the other hand, realize they have been paying too much to fund managers who, quite frankly, have lost their edge, allowing their value proposition to shrink to an almost unrecognizable point because such a large portion of profits have been driven by extremely favorable financing terms. Because investors rely on the income from their investments to fund whatever it is that they do (pensions, universities, etc.), they need to make commitments and keep the economic wheel turning. And, with so few new choices, many institutional investors are forced to give in to what fund managers are offering.

Large institutional investors have more power today than they realize, and with the right leadership they could help re-shape the industry for the better. Relying heavily on a previous track record as an indicator of likely success, in a future that will undoubtedly look quite different than the past, may not be the best strategy. A better bet may be fund managers that are more adaptable to change, that are more willing to present structures which focus on creating long-term value, and have a desire to begin working toward sustainable and energy efficient strategies of investing and development. When assets are viewed in terms of creating economic, social, and ecological value, growth is more balanced and sustainable and less susceptible to large swings in the financial and capital markets.

Suburban sprawl with carbon copy retail centers, minimally constructed housing developments, and energy-gorging apartment complexes are all simply unsustainable and will not work for the future. They are also poor examples to set for emerging markets that have to figure out how to support a net increase of 3 billion people over the next 40 years and typically look to America for answers.

The real estate industry will have to evolve because we are rapidly approaching the tipping point where it is economically advantageous to create and embrace new types of value. The real question is who will be the first group to realize just how incredible this opportunity is for those with the courage to change. Detailed below are two areas in which I believe the real estate industry can make great strides and become the leader the world needs in building more efficient communities that promote healthier lifestyles and sustainable living.

First, we must start with an investment model that is focused on creating value instead of creating fees. The days of creating a majority of profits from financing arbitrage while collecting huge fees and adding very little value are over (or at least they should be over). Those who can design integrated investment models that eliminate the double promote and have a viable long-term strategy that includes some elements of sustainability will have a tremendous competitive advantage.

Second, we must build asset management strategies that not only address the needs of capital but also begin to address the energy and climate conundrum we are all facing, offer end-users options that help solve their daily problems, and are congruent with the direction local municipalities and communities are headed. Typical asset management models are based on a pyramid structure driven by a chain of command. An integrated asset management model, as depicted below, puts the asset at center stage and focuses on adding value by integrating end user needs, investor needs, social needs, and environmental needs into one cohesive strategy.

An integrated asset management model is all about adding value. For example a C class apartment complex that provides residents with free parenting classes, free money management classes, and partners with a local non-profit that provides a mobile medical clinic to families that cannot afford healthcare, will enjoy the highest occupancy rate in its market. Alternatively, a high end retail center whose tenants all relate to health and fitness, sponsors weekend community races and farmer’s markets, will be able to charge a premium, because tenants will insist on being where the action is. Or how about an office complex that caters to “green” businesses that are happy to pay a premium because the building is carbon neutral and net positive on energy. These are just a few examples of a multitude of creative strategies available in an integrated model that views value through a multiple lenses.

Posted in Innovation, business, creativity, global, real estate, strategy | 1 Comment »

The Century of Women – The 21st Century

Wednesday, June 2nd, 2010

85Broads2Originally posted  The Century of Women on 85 Broads – a global network of 20,000 trailblazing women who are inspired, empowered, and connected.

Last week I had the distinct pleasure of seeing Isobel Coleman, the author of Paradise Beneath Her Feet, speak at a World Affairs Council event in Dallas. Like Isobel, for most of my career I strategically avoided “feminist” issues. After all, I grew up in a family where it was just as likely for a man to have a PhD as it was for a women and both genders were scientific leaders in their industries or political leaders in their communities. I have no brothers and my parents were clear from the age of 5 that we could be anything we wanted. We all saw Billie Jean King playing her famous tennis match, but to us kids, it was just another tennis match. She was there, playing against a guy, so what exactly was all the fuss about? Now, all these years later, I can appreciate Billie Jean and those like her for the courage they shared with world and the gifts they gave to all women.

As I made my way to the C-suite of some pretty impressive firms, I came to better understand the nuances and challenges that still exist for women today in the West. I also now view Women’s Empowerment as something that goes far beyond equal pay for equal work and obtaining 50/50 gender ratios. Much of the developing world’s success hinges on the empowerment of women in regions of the world where being raped can mean a brutal public death started by your own family.

Whereas the 20th century was clearly the beginning of equality for women, and phenomenal progress was made in a very short period of time, until our sisters in the remaining two-thirds of the world can freely speak, walk, vote, learn, and work, we cannot claim victory. As an eternal optimist I see much evidence that we are nearing a tipping point of progress that could get us there by the end of the 21 Century. 90 years is a long time. This is why I believe that the 21 Century is The Century of Women.

What Business and Politics Need the Most are Intrinsic to Women

The keys to success in the 21st Century are being more efficient with our resources, including the bottom of the pyramid, and innovating our way to preserving our environment instead of depleting it. We can all be thankful to the Henry Ford’s and JP Morgan’s of the world whose heavy-handed leadership led us through the Industrial Revolution. However, the skills needed to move forward in this century are far more intrinsic to women. I am in no way saying that women should replace all men leaders, but I am saying that we could all benefit from a few more women leaders.

When employees feel a part of a team, buy into the vision, feel they are heard, and are provided the opportunity to manage themselves, productivity and creativity skyrocket. In today’s business environment, most companies run at approximately half speed when it comes to human potential, productivity, and creativity. This is not about working longer and harder with fewer breaks. It’s all about desire, value, contribution, and time for rejuvenation and creative contemplation.

The 2010 Global IBM CEO Study, recently published, indicates the most important leadership qualities required over the next 5 years are: Creativity (60%), Integrity (52%), Global Thinking (35%), Influence (30%), Openness (28%), Dedication (26%), Focus on Sustainability (26%), Humility (12%), and Fairness (12%).

The paradigm shift that is revolutionizing not only business, but global social structures is a monumental opportunity for women leaders to step up and show the world that we have the innate leadership qualities that the world needs today and the courage to use them.

The Empowerment of Women in the Developing World

If you have any doubt that the empowerment of women is happening in places like the Middle East, you need only to read Isobel Coleman’s book, Paradise Beneath Her Feet. What she rightly points out is that for sustainable progress to take hold, it must come from within. The Soviets tried to forced education on women during their decade of occupation of Afghanistan and it ended up making things worse. Now Afghan men are sighting Islamic text to spread the notion that Islam is, and always has been, a religion that serves both genders equally. This is the only way for real progress to be made, and it is happening every day in the Middle East.

I’m sure most of you have heard about the “The Girl Effect” session at the 2009 World Economic Forum by now that unexpectedly stole the show despite having the worst time slot. Lee Howell, Davos Annual Meeting Director, indicated that, “The field work, economic analysis, and experience all point to the powerful effect you’ll have if you invest in girls.”

“A simple concept whose time has finally arrived”, wrote Ashish T. Galande of World Pulse. The tide is changing, but there is much work to do. Recognition of a solution and a change in mindset are always the first steps. “Despite the overwhelming evidence that helping girls escape poverty is the key to healthy social and economic growth, only a meager 0.6% of development money goes to this demographic” (Ashish T. Galande / World Pulse).

Shear Guts and Courage are Contagious

Technological advances have given all of us the ability to share and to seek out those who inspire and motivate us. Often it helps just to remind ourselves that we are not alone in our endeavors, despite how we may sometimes feel. 50 years ago, you might go months or years without hearing or reading something purely inspirational regarding the empowerment of women, now you can immerse yourself in wonderful stories, videos and writings anytime you heart desires.

Though many in the developing world don’t have access to technology, the few that do, spread the word. Conversely, those of us who live in the West have much better access to knowledge about women in the developing world and how we can support their efforts.

Shear guts and courage are highly contagious, especially from women to women. When we see others take risk, stand up for what is right, and challenge the status quo, we are much more inclined to do it ourselves. We must continue to support each other (men and women) in all endeavors that help to raise the level of human consciousness and provide a more meaningful life for more people. When you cut to the chase, this is the deep-seated desire of most . . . it is simply a part of being human. Sometimes, however, it gets covered with a bit of dust or becomes a little rusty. I believe that the power exists within everyone to good in the world. It is simply a choice how and when we use that power.

Posted in Courage, global, leadership, social | 1 Comment »

Haiti: The Western Hemisphere’s Greatest Potential

Sunday, January 24th, 2010

Haiti-2w

This post is dedicated to the tens of thousands of Haitians who have lost their lives; to those who will undoubtedly loose their struggle in the coming weeks; to my friends and colleagues at Aimer Haiti and to the wonderful creative economic development ideas we were working on that now mean more than ever before.  See previous posts for more information on Aimer Haiti.

Globalization is no longer optional for any nation, company, or person in the world, regardless of their beliefs.  The realities of our globally interconnected world are more evident now than ever before given the failures in our global financial systems that are far more intertwined than many realized.  This coupled with the shrinking populations in many developed nations ensures that disasters such as Haiti and other atrocities happening in under-developed countries are everyone’s challenges and everyone’s potential.  It is now in the self-interest of the developed world that these tragedies are tended to and we band together to allow capitalism and democracy to bring people out of poverty creating new and sustainable consumers and markets for everyone to access. It’s no longer optional; and for me that brings hope.

In order for economies to grow, they require something to create an increase . . . more consumers, cheaper inputs, faster production, more products . . . you get the idea.  Until this century, the developed world has been able to primarily rely on their own increases in population, growing middle class, advances in technology, and fierce consumerism to feed the ever-increasing wheel of economic activity.  Take a look around today . . .

  • Populations in many developed countries are decreasing or slowing
  • Consumerism has taken a big hit as many realize debt gone wild is bad and things don’t bring happiness
  • The environment is feeling the effects of careless growth increasing production costs around the world
  • Non-renewable commodities/resources continue on a trajectory of ever growing costs because, well, they are non-renewable
  • Finding cheaper inputs is a strategy of the past, including labor, as the world is realizing its better to pay a decent wage and create a consumer

What does all that mean?  It means that the primary resource of capitalism has moved from capital, to labor, and to knowledge over the past 150 years and is now moving toward Connectivity . . . Stronger, deeper, more trusting, compassionate, and creative connections in every direction imaginable will drive the future.  You can’t touch connectivity.  You can’t buy it.  You can’t even learn it from a textbook, but it can be cultivated and societies are increasingly hungry for it.  Those who can connect the seemingly un-connectable dots in new and inventive ways will win.  Businesses that connect to what their customers and employees value the most will win.  Capitalists that figure out how to connect to and serve the Bottom of the Pyramid will win.  Those who can embrace the connection between failure and success will win.  Those who have the courage to connect to their passion and not to the herd will win. Those who figure out that hording no longer works but collaboration does will win.  Those who learn how to tap into the innate energy that exists in every person to do good in the world will win.  Those who can disconnect from fear and connect to the creativity in courage will win.

The US, Europe, and the rest of the developed world must realize that in order to continue our own standard of living and our own comforts in life we must begin to help other countries build middle classes and become the productive citizens they desire to be.  My hope is that perhaps this tragedy in Haiti can bring light and education to the need for global citizenship and the prosperity it can bring to so many (rich and poor).  We have an opportunity to help Haiti rebuild itself and become a model to be used by other struggling nations.

Changing our outlook and expectations from the short-term to the long-term is key.  Today, liquidity does exist; it just exists with a short-term expectation of return and is invisible to most of us.  So we have what is referred to by some economists as a “wall of liquidity” that is searching the world for immediate arbitrage situations and completely ignoring the long-term opportunities that exist today in many industries and places around the world.  That “wall of liquidity” brings a risk of continued global financial instability as it preys on unlikely places such as Russia where the currency will likely normalize in relation to the USD and EUR and monetary policy has allegedly been mismanaged.  It is critical that we recognize the many unintended consequences of the past and vow not to repeat them in the future.

“The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.”  ~  Theodore Roosevelt

Posted in Courage, Haiti, business, economy, global | 1 Comment »

Waking Up In Jacmel

Sunday, January 24th, 2010

Haiti-3

Just a couple of months ago Aimer Haiti and I met with Agronome Noel (“Agronomist Noel”), one of Haiti’s leading agronomists.  You cannot imagine the determination and drive that this man and his wife have for their country and the need to rebuild the agricultural industry.  We dreamt of the possibilities sitting around the table of an office building that was completely destroyed in the earthquake.  He showed us the book that he has written on how to rebuild agriculture in Haiti.  We talked about the need for a master land plan for the island.  Over time, the lower flat lands that are prime for agricultural production have been used for housing and has wrecked havoc on the natural drainage ways.  We talked about how important this step is, but how difficult it would be to implement since it would require huge changes.  It now represents one of the hidden opportunities in the horrors of the earthquake.

After several hours of invigorating discussion, which left our minds swimming with ideas and possibilities, Agronome Noel invited us to visit his farm.  Fifteen years ago, he turned his frustration with politics into action and wanted us to see first hand what he had created.  So, that was that, three of us were going to Jacmel for the weekend!  This was huge treat for me, as I knew that agriculture would be a large part of the success equation for Haiti.  For decades, Haiti had been given the well-intended advice to buy their food on the global markets and instead build factories to manufacture clothing.  That strategy failed when world food prices rose dramatically and no one was interested in building factories in a logistically difficult place like Haiti when they have options like Mexico, Brazil, India and China.  It was simply bad advice that millions paid the price for.  A country should be able to feed itself.  It cuts the risk of being subject to the large fluctuations in world food prices, it provides jobs, and for a tropical country like Haiti it can produce significant exports.  But more importantly, it provides a sense of pride and accomplishment for its people.

Agronome Noel and his wife Nani purchased 15 hectares of dried up and barren land in Jacmel 15 years ago that was considered useless, for what amounted to a few hundred dollars.  He told the community he was going to grow wonderful and rich fruits and vegetables.  Many laughed at him and from that point on he was known as the “crazy agronomist”.  He did not mind because he knew that some years down the road he would prove his point, and he did.  Though at this point, I am not sure the fate of the Agronomist and his wife.  They spent most of their time during the week working in Port au Prince in order to fund their farming operation in Jacmel.

Three of us from Aimer Haiti spent a weekend with the Noels on their farm in Jacmel.  We stayed in the beautiful home they have been building for 3 years that was to eventually to become their retirement home and a bed and breakfast.  I suspect it is no longer standing.  The 3 hour drive from Port au Prince took us on a journey through the slums where all the garbage eventually collects after the rains, over broken roadways still not completely repaired from the hurricanes, and up through a gorgeous mountainous region.  Despite some barren areas, there is still enough vegetation in the mountains that you can see and feel its natural beauty.  The roads in the mountains were actually quite good and we past many small farmers bundling their harvests ready for the trip down the mountains that more often than not ended in spoiled produce before it reached a market.

We arrived at the farm in Jacmel after dark.  The only light we had was from the cars we were driving and a small generator powering a couple of light bulbs in the house.  We sat on the porch facing the ocean enamored with just how striking the stars are when you are so close to the equator and there is very little artificial light.  We drank, we ate, we laughed, and we continually talked and dreamt of the possibilities for Haiti. The energy of hope and passion was strong in the air and it felt good to me.  You cannot spend time in Haiti and not fall in love with the land, the people, and its spirit.  It does not matter how much other heartbreak and sadness you witness, in Haiti love always wins.  I am certain this is why the Clintons have remained so committed to this tiny country after all these years.

The sun arrives early near the equator; at 5:30 am in Haiti.  The breeze from the sea is not as strong as I expected.  Nor is the sound of the waves crashing against the 3-meter wall of rock down to the sea just 30 yards from the back porch of this large, half finished house in Jacmel.  I am a lover of all sunrises, so there was no way I was going to miss this.  The sun arrived on time, but shielded for some time by a large cloud. Soon, Agronome Noel was with me preparing for the day while everyone else still slept.  I heard goats on the adjacent property and asked if he had any.  He pointed to one goat off in the distance tied to a rock and told me that today would be the goat’s last day.  Sure enough, about an hour later he and two others went out to meet the goat.  And by the end of the day, well . . . we were eating goat stew.

A ball of fire finally burst from beneath the cloud and its rays reached far and wide as we quickly move from a shadowy sunrise to the full-fledge beginning of a new day.  What a peaceful and gorgeous place I had awoken to, now that I could see everything.  How could anyone have ever considered this land a lost cause?

When the Noels began 15 years ago with a plot of dry barren land, there was no road, no access to water, no electricity, and no soil.  For the crazy agronomist, these weren’t problems, just things to be done.  On weekends and holidays, with the help of a few farm hands that live on the property, they began the transformation by hand.  There are no big machines and no tractors, just simple hand tools.  They trucked in water and topsoil and began to build the tree canopy.  You see, first you must create enough of a canopy to cool, shelter, and nourish the soil below.  Once the canopy began to work it’s magic they were able to plant the tender topical plants and fruit bearing trees.  They have bananas, cocoa, coconuts, mandarins, figs, papayas, and almond trees.  At least those are the ones I can remember.  The barren land was transformed into a tropic forest full of agricultural treasures in a few short years.

I will never forget the day I woke up in Jacmel!

Posted in Courage, Haiti, global, political, social, strategy | 2 Comments »

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