Daily Archives: March 26, 2018

Creating Shared Value (CSV)

Operationalizing CSV Beyond The Firm

BOOK REVIEW

How to Fix Capitalism and Unleash a New Wave of Growth, Authors: Michael E. Porter, Mark Kramer.

By Henning Meyer – Under the CSV concept, firms participate in different markets to create social and economic value but Porter and Kramer do not analyse the nature of markets nor do they provide any explanation for how the creation of social value via market mechanisms is necessarily rooted in the social nature of markets themselves.

The standard neoclassical model of transactional markets that are driven by purely rational players is an ideal type in Max Weber’s sense, i.e. an abstract model not to be found in this pure form. Any approach assuming the creation of social value by market mechanisms, however, should provide a deeper understanding of the social nature of markets themselves. This is a crucial backdrop to defining, creating and measuring social value: it is dependent on this context.

On this basis, in a further step, it is vital to develop an understanding of public policy and the government’s role in markets. Public policy’s character is not limited to basic regulation and market-fixing where market mechanisms left to themselves would produce externalities.

Government policy, moreover, aims at market creation and incentive shaping. Understanding the interplay between companies and governments in markets that themselves are social in nature is therefore fundamentally important to understand social value and to move beyond the narrow organzational focus of Porter and Kramer. On this basis, in addition to the three operational dimensions within firms that Porter and Kramer describe, CSV can be more broadly operationalized using a corporate diplomacy approach and the tools of non-market strategy to provide a more holistic and comprehensive view of the CSV process.

There has been significant criticism undermining the academic credibility
of CSV and the way in which Porter and Kramer present their work. In essence, these criticisms refer to the originality of CSV as well as the concept being superficial about a company’s role in society and naïve about the trade-offs between social and economic goals and business compliance.

There is also a question about shared value itself. It is clear what the economic value part of shared value is: a better bottom line for corporations. But beyond the obvious win-win situations, what is social value and how does one define and measure it?

What are the trade-offs involved? (pdf) more>

The Fifth Question For BRAVE Leaders: What Impact?

By George Bradt – Environment, values, attitude and relationships all inform behaviors and what impact you and your team make.

Ultimately, you lead with your feet, with what you do, more than with what you say. So focus everything and everyone on those few behaviors with the greatest impact.

Make a plan, identifying your needs and concerns and the other party’s. Get started with areas of agreement. Clarity positions, stating, supporting, listening. Find alternatives.

Gain agreement by studying proposals, making concessions, summarizing and testing. Implement, communicating, delivering and monitoring.

Work through the steps of AIDA (Awareness, Interest, Desire, Action) Broadly build awareness. Engage in conversations with those interested. Jump in with both feet once someone has a real desire.

And then follow through to over deliver once they act. more>

Updates from Ciena

Fiber Deep: Bringing bandwidth to the edge

By Elias Cagiannos – It is no secret that on-demand audio and video streaming services are surging as consumers turn away from traditional consumption models. In 2017, 54 percent of all TV households in the country had a Netflix subscription, up from 28 percent in 2011.

These services are using massive amounts of bandwidth and often free riding on top of Multi-Service Operators’ (MSOs) networks.

As I spend time meeting with Ciena’s MSO customers, I understand that pressures don’t stop there. For example, aging and inefficient analog infrastructures are hampering bandwidth growth. In turn, this is preventing them from introducing new services as higher speeds and symmetrical services such as picture and video storage in the cloud, social media and video chatting have become more important.

Not only do these infrastructures impede service agility, but the network is becoming increasingly complex to scale. MSOs are adding more equipment to address their dynamic needs – but lack the analytics and insights to proactively make the necessary changes and are instead constantly finding themselves having to react to problems. In today’s hyper-competitive market, this can make or break a MSO’s reputation when quality of experience means everything. more>

Rational Irrational Exuberance?

By Andrés Velasco – The timing was exquisitely ironic: equity markets peaked – and a week later began crashing – just as pundits left this year’s World Economic Forum meeting in Davos, where they concluded that the global economy was on a steady upswing. In the weeks since, experts have divided into two camps.

Some, including new US Federal Reserve Board chairman Jerome Powell, believe that economic fundamentals are strong, and that what stock markets experienced in early February was only a temporary hiccup.

Then there are those who believe that fundamentals are in fact weak, that the current upswing will prove unsustainable, and that investors should regard stock-market gyrations as a necessary wakeup call.

Both schools of thought share a focus on fundamentals, unlike a third – and, in my opinion, highly plausible – view: that the asset-price volatility we have been seeing has little or nothing to do with changes in fundamentals.

The human brain is wired to structure knowledge around narratives in which we can tell if and how A (and B and C) causes X. We tend to be uncomfortable with the notion that an economy’s fundamentals do not determine its asset prices, so we look for causal links between the two. But needing or wanting those links does not make them valid or true. more>