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24 June 2009 • 8:05 am

SUVs and the Law of Unintended Consequences

SUVs have become an icon for the regret some of us share for our recent history. Their inefficient use of fuel has increased U.S. dependence on foreign oil, and shrinking demand has pushed the once mighty U.S. auto industry and economy to the brink. SUVs were popular because people felt safe in them. But they were wrong.

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17 June 2009 • 11:33 am

Talking about Strategy

An excellent predictor of the effectiveness of the change program in any organization is how that organization’s members talk about strategy. Leaders engaging in a change program tend to spend far more energy in developing their strategy than they do in ensuring that the message of strategy is effectively communicated throughout the organization. This isn’t surprising: talking about strategy doesn’t come naturally, but it is essential to the success of the change program.

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8 June 2009 • 11:36 am

The Motivating Power of Measurement

Practitioners and fans of the balanced scorecard concept understand that measurement has the power to motivate behavior. The great challenge in driving change in any organization isn’t just to change the culture, but to change the behavior of individuals and groups inside the organization. Performance measurement doesn’t just tell us how well we’re doing at achieving a desired outcome, the very process of measurement and communication of measure results actually changes behavior.

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16 May 2009 • 11:21 am

Numbers, Perception, and Motivation

Reading a post on the excellent political blog fivethirtyeight.com, I was reminded that how we look at numbers really affects how we consider the rationale for a proposed change. Congress is currently considering legislation to provide consumers with vouchers of up to $4,500 to scrap their gas-guzzlers and replace them with more fuel-efficient cars.

Here was an excerpt of the proposal:

Light-Duty Trucks: The old vehicle must get 18 mpg or less. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

Wow. It sounds like a windfall for a very slight improvement in gas mileage. But it may be because we are looking at fuel efficiency backwards. Americans evaluate fuel efficiency different than how those do in most other parts of the world.

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