Both BMW and Mercedes Benz are known for their terrific high-end performance cars. I know that since I own one of them. They have not been recognized for their emphasis on fuel consumption technology. But that’s about to change soon when both companies are about to reveal new car models offering better fuel consumption. So what do you think? Is this an attempt to enter emerging new markets such as India and China and compete against other brands and/or possibly show their concern for the environment? If they are successful, would this move dilute their brand for their high-end driving machines?

The WSJ has just reported a reduction in software piracy in China. Of all estimated software used in China in 2006, 82% was pirated vs. 86% the year before.

Running my software development firm for the past 20 years, this is a huge ethical and economical issue which I hope is resolved expeditiously.

The Wall Street Journal published yesterday a terrific interview with George David, The CEO of United Technologies. Below are several quotes made by him that I found fascinating:

“What goes on in a big sailboat is a combination of preparation, organization, design, strategy, tactics, rules, teamwork, individual performance and group performance … When you drop a new crew person in, every now and then you may get an elbow in the face. It’s because you and that person don’t know how you’re going to move relative to one another. That’s the same thing in the business; you don’t want an elbow in the face.”

“You can’t walk through life with a trained eye and not see the opportunities for productivity (sitting in traffic, forms at the doctor, waiting for things) ... Just look at the difference in personal productivity between people, educated versus not educated. Or people in good, really productive labor environments, versus people who are kind of struggling because they’re in disorganized or ineffective companies … There’s a part of the world that doesn’t believe in the rights of women. Why on earth would you live in a society where half the people are deemed to be nonproductive?”

“Education is definitely the most powerful force in life. Educated people are more thoughtful. They’re more widely read. They’re more alert to change. They’re more confident.”

My good friend and colleague, Dan Coughlin, has just published his new book, Accelerate: “20 Practical Lessons to Boost Business Momentum”, which is now available in all major book stores. Dan has also been our featured guest contributor for our April Newsletter:

Milton Friedman, possibly the greatest economist of the 20th century, died on November 16, 2006, at the age of 94. With a list of remarkable accomplishments such as: winning the Nobel prize 30 years ago, writing several profound books, advisor to governments and presidents, his most important one is that of the popularization of the free-market principles – the separation between government and business.

He claimed that the Great Depression was not, as was once commonly presumed, a “market failure,” but a failure of government policy.

What I find most fascinating about this leader is his brilliant wisdom, provocative style, yet his basic common sense for the noble concepts he stood for:

“We do not influence the course of events by persuading people that we are right when we make what they regard as radical proposals. Rather, we exert influence by keeping options available when something has to be done at a time of crisis.”

I am a firm believer in the power of a mastermind group and its ability to improve your business. Read my December 2006 article “1 + 1 = 86 or the collective brainpower of a mastermind group” and find out how to create one and get the most out of your group.

Seth Godin, author of several great marketing books, talks about why small is the new big. He illustrates several examples as to how companies strive to become big and fast but many lose their market share to smaller companies who are often more profitable. So what are some of the benefits of being small according to Seth?

Small means the founder makes a far greater percentage of the customer interactions.

Small means the founder is close to the decisions that matter and can make them, quickly.

Small is the new big because small gives you the flexibility to change the business model when your competition changes theirs.

Small means you can tell the truth on your blog.

Small means that you can answer email from your customers.

Small means that you will outsource the boring, low-impact stuff like manufacturing and shipping and billing and packing to others, while you keep the power because you invent the remarkable and tell stories to people who want to hear them.

A small law firm or accounting firm or ad agency is succeeding because they’re good, not because they’re big. So smart small companies are happy to hire them.

A small restaurant has an owner who greets you by name.

A small venture fund doesn’t have to fund big bad ideas in order to get capital doing work. They can make small investments in tiny companies with good (big) ideas.

A small church has a minister with the time to visit you in the hospital when you’re sick.

Diversity in most organizations is no longer a matter of counting statistics and attempting to do the right thing, it is now vital to business success. In order for companies to sell locally and globally they need to better understand their target audience mix and include a diverse perspective of their employees. Top executives will also need to better understand cultures in countries around the world.

In the article “The New Diversity”, published this month in The Wall Street Journal, several examples were cited to substantiate this importance:

PepsiCo – Increased minorities in management positions and new products such as guacamole-flavored Doritos chips, Gatorade Xtreme aimed at Hispanics while Montain Dew Code Red targeted towards African Americans and wasabi-flavored snack aimed towards Asians.

IBM – Increased minority management, especially women, more than tripled since 1995 and now stands at 52% of the organization.

Harley Davidson – Increased women and people of color in management positions.

The brilliant thinker Peter Drucker who invented management as a field of study and research, died today at the age 95. As noted in the Wall Street Journal and in Drucker’s book, The Essential Drucker:

In mid-2002, President Bush awarded Mr. Drucker the Medal of Freedom, the highest civilian award the government can bestow. Also:
Business Week Magazine – “The most enduring management thinker of our time”
Forbes Magazine – “Still the Youngest Mind”
Wired Magazine – “arch-guru of capitalism.”