martes, diciembre 30, 2014

Why members of Boards of Directors must also change their common sense first

Steve Denning has contributed to Forbes another excellent article: Reward Directors' Poor Performance With A Hefty Raise? Next you can see my comment slightly edited on form on how directors must work and Mr. Denning's response:
“… the third level of explanation, the ‘structural’ explanation, is the least common and most powerful. It focuses on answering the question, “What causes the patterns of behavior?” – Peter Senge

Dear Steve Denning,

You write that “It is the responsibility of directors to ensure that these changes happen and that firms pursue the right goal. If directors were to lead that charge, force the abandonment of the shareholder value theory in their firms and refocus their organizations on the right corporate goal, they would certainly deserve a raise. That however would take considerable courage and would involve very different behavior from what we are seeing today.” To have such different behavior, Shouldn't those directors behave by fully comprehending such “structural explanations”?

In the next two paragraphs is what I wrote on the blog post Why the Eurozone leaders must change their common sense first.
In the “more than 1 million copies in print,” of the “revised and updated with 100 new pages,” in the 2006 book in front of me, “The Fifth Discipline: the art & practice of the Learning Organization,” written by Peter Senge, it says that “The system perspective shows that there are multiple levels of explanations in any complex situation… In some sense, all are equally ‘true.’ But their usefulness is quite different.” I guess that high quality journalism is not just about “event explanations,” which Senge says “are the most common in contemporary culture, and that’s exactly why reactive management prevails.”

Instead, he says that “Pattern of behavior explanations focus on seeing longer term trends and assessing their implications,” which seem to fit with today’s good journalism.
Then he adds what the introductory quote says.

Happy New Year!!!

José Antonio Vanderhorst Silverio, Ph.D.
Consulting Engineer on Systems Architecting

Called-out comment

Author reply
Steve Denning Steve Denning, Contributor
Dear Jose (A Vanderhorst)

Thanks for your insightful comment with which I agree. We need to get to a system-level understanding of the problem, not just an event-type explanation.

Called-out comment


All 93 posts on Business Model Innovations on the EWPC Blog changed to Institutional Innovations

I just learned that I have been writing about business model innovations when I should be calling it institutional innovations on the Electricity Without Price Controls (EWPC) Blog. Please consider every one of those mentions to be replaced from now on. One concept that unites both business model innovations and institutional innovations concepts is that they are both systems architecture innovations that emerge with minimalist architectures.

Here is the source for the change. In his blog post Challenging Mindsets: From Reverse Innovation to Innovation Blowback, John Hagel writes that "This is not a question of business model innovation or the management innovation that Gary Hamel talks about. Those forms of innovation are still contained within a single enterprise. Institutional innovation is different - it defines new ways of working together, ways that can scale much more effectively across large numbers of very diverse enterprises."


Top results for "business model innovations"

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93 results in EnergyBlogs.com.
Resiliency proposal customers and society are not expecting but will love - Jose Antonio Vanderhorst-Silverio
Under the commentary Want resiliency? Here's how to get it. (New Jersey has already started), Jesse Berst introduces and presents
July 9, 2014
Start with the customer experience means: start with connected home platform - Jose Antonio Vanderhorst-Silverio
Jesse Berst's article What the race to control the home means to utilities (it ain't pretty) on SmartGridNews.com comes right
June 3, 2014
Electric power industry financing - Jose Antonio Vanderhorst-Silverio
The Spanish electricity crisis is an outstanding example of the failure of the state institution to provide the necessary incentives
July 30, 2013
Great electric service - Jose Antonio Vanderhorst-Silverio
Great electric service will be the result of the development of business model innovations in the retail market, for example,
July 22, 2013
How Utilities that Become Tech Companies Might Develop Business Model Innovations - Jose Antonio Vanderhorst-Silverio
In the article From volume to value: Why utilities MUST change their business model (and one way to get started),
April 22, 2012
Smart Grid Customers are Looking for Convenience, as Opposed to Engagement - Jose Antonio Vanderhorst-Silverio
Does the Smart Grid Really Need Consumer Engagement? is an insighful article written by Michael Jung that we all have
November 19, 2010
Which Country Will Take the Leadership of a Global Vision for Advancing Grids for Customers? - Jose Antonio Vanderhorst-Silverio
As the US and Europe are overtaken by their complex political processes, it seems that with a high likelihood they
September 19, 2010
Don Norman Said that a Translational Bridge is Needed Between Design Thinking and Design Doing - Jose Antonio Vanderhorst-Silverio
Don Norman at IIT Design Research Conference 2010 vimeo.com   After looking at the presentation, I see that Don is
September 15, 2010
3rd Smart Grid Lesson Learned: in the Enterprise side “Everything Dies a Quick Death.” - Jose Antonio Vanderhorst-Silverio
Michael Kanellos, one of the greentechmedia.com editors, responded a comment that became the EWPC post The Enterprise Side of the
September 3, 2010
Forget Monopoly Feed-In-Tariffs to Start Learning About Competitive Buy-Back Spot Prices - Jose Antonio Vanderhorst-Silverio
This comment completely supersedes the www.greentechmedia.com article Feed-In Tariffs Can Spur Disruptive Growth: California is studying a new incentive that
July 31, 2010
Forget the Customer Engagement Debate; Think Risk Taking Suppliers - Jose Antonio Vanderhorst-Silverio
  The outstanding Maryland PSC’s leadership decision is a potential precedent, which will help utilities and state governments accept the
June 25, 2010
The Dynamic Pricing Debate Shows that Utilities Won't be Able Engage Customers - Jose Antonio Vanderhorst-Silverio
  Under the IntelligentUtility.com article The Dynamic Pricing Debate, by Kate Rowland, editor-in-chief of Intelligent Utility magazine, which originally appeared
June 19, 2010
Simplistic DynAMIc Pricing Will Cost Payers a Fortune - Jose Antonio Vanderhorst-Silverio
Taxpayers and ratepayers representatives are being tricked to let state regulators approve rate increases to utilities related to an Automated
June 6, 2010
Power Industry State of the Art that Emerged from The Network Grid (TNG) Conference - Jose Antonio Vanderhorst-Silverio
Architecting evidence on the urgent need to simplify the power industry is based on the serious flaws of an ineffective
May 23, 2010
Does ElectriNet(SM) Provides an "Walled Garden"? - Jose Antonio Vanderhorst-Silverio
Smart Grid Trends: Deja Vu All Over Again? Advice on how to avoid becoming the next CompuServe is a timely
May 17, 2010
State Governments Need to Unleash the Benefits of the Next Big Thing - Jose Antonio Vanderhorst-Silverio
As the utility business model has outlived by many years its useful economic life, state legislatures need to produce as
May 9, 2010
Will Utilities develop the Next Big Thing? - Jose Antonio Vanderhorst-Silverio
As a follow up to the post Isn't the Next Big Thing About Business Model Innovations?, I first add as
May 3, 2010
Isn't the Next Big Thing About Business Model Innovations? - Jose Antonio Vanderhorst-Silverio
  Under the IntelligentUtility Insight, The 'Next Big Thing', written by Phil Carson, I wrote the following comment:    “Fifteen
April 22, 2010
Super Grid: the Smart Grid that is Being Pushed - Jose Antonio Vanderhorst-Silverio
  In synchronicity with the article Macrogrids and microgrids: another conversation, by Phil Carson, I posted the following comment:  The
March 22, 2010
Is Google the New Enron? - Jose Antonio Vanderhorst-Silverio
Even though a debate has already reaffirmed without doubt that “The answer should be a strong NO!,”  there is additional
January 17, 2010
The Electricity Without Price Controls Architecture Framework - Jose Antonio Vanderhorst-Silverio
  A new approach to power energy policy design, based on system’s architecting heuristics, has led to an emerging simplified
November 30, 2009
The Deadly Sin of State Regulators on the Smart Grid - Jose Antonio Vanderhorst-Silverio
President Obama and Secretary Chu need to learn urgently about the deadly sin of the smart grid that state regulators
July 5, 2009
COMPETE Coalition to Stop a Huge Greek Tragedy in the Making - Jose Antonio Vanderhorst-Silverio
Entrenched IOUs reaction to change set up at the outset of restructuring a fatal architecture flaw that will lead to
June 28, 2009
The Obsolete Generation Economies of Scale Argument - Jose Antonio Vanderhorst-Silverio
The Pitfalls of and Opportunities in Electric Power Deregulation is an article written by Harry Valentine, Commentator/Energy Researcher, which opens
June 8, 2009
Innovation Needs to Belong to the Small - Jose Antonio Vanderhorst-Silverio
Will the US Stimulus Bill Prove the Savior for Nanotech? is an IEEE Spectrum's Tech Talk commentary, under which I
May 26, 2009
Competitive Markets for COMPETE Coalition Potential Losers - Jose Antonio Vanderhorst-Silverio
Potential COMPETE Coalition losers need to be aware of the need for a revolutionary regulatory change to enable highly competitive
May 6, 2009
Why President Obama Needs to Keep Working on Energy - Jose Antonio Vanderhorst-Silverio
'Pleased, but not satisfied' Energy crops up at Obama’s 100-day press conference is the commentary posted on 29 Apr 2009
April 30, 2009
DOE's WISE NOI for an FOA - Jose Antonio Vanderhorst-Silverio
Following the lead given by James Carson, I posted a comment under the SmartGrid.com featured article Smart Grid Stimulus Bill:
April 24, 2009
Investor Owned Transporters Can’t be Providers of Last Resort - Jose Antonio Vanderhorst-Silverio
Under the highly recommended EnergyPulse article Smart Grids: How Smart?, I responded to Edward A. Reid, Jr. that as the
April 16, 2009
Zero-Energy Homes Should Not Be Mandated - Jose Antonio Vanderhorst-Silverio
This comment is posted under the article New Calif. homes would have to be energy producers, by Steve Lawrence in
April 12, 2009
Is What I am Doing to Reduce GHG Emissions Enough? - Jose Antonio Vanderhorst-Silverio
This is a comment posted as a link under the energyblogs.com post "Please pass Al Gore a Valium -- and
April 9, 2009
Forget Demand Side management (DSM); Think Demand Side Innovation (DSI) - Jose Antonio Vanderhorst-Silverio
To make the emergent power industry smarter, there is a need to restructure the power industry to enable Second Generation
April 7, 2009
Questions to EnergyBiz Leadership Forum Participants - Jose Antonio Vanderhorst-Silverio
Copyright © 2009 José Antonio Vanderhorst-Silverio. All rights reserved. No part of this article may be reproduced or transmitted in
March 8, 2009
EWPC as a Timely Basic Innovation - Jose Antonio Vanderhorst-Silverio
As time goes by, an increasing number of people will agree that the EWPC creation is in fact a fundamental
February 22, 2009
To Dr. Chu: Align Stimulus to Clean Energy Reform - Jose Antonio Vanderhorst-Silverio
A system architect should lead a high leverage clean energy reform transformation of the power industry for DOE to distribute
February 8, 2009
Just as Pogo, IOUs Found the Enemy - Jose Antonio Vanderhorst-Silverio
Just as everybody else, power industry investors win by changing their IOUs paradigm mental model. Well in agreement with the
January 26, 2009
Think Deming to Enable Much More than Just Freedom - Jose Antonio Vanderhorst-Silverio
Deming’s economics replaces the prevailing system of management with a system of profound knowledge to push economies onto a higher
January 18, 2009
IOUs Perverse Communism - Jose Antonio Vanderhorst-Silverio
For free society to face "perhaps the most serious series of crises in the republic’s existence, and for our" power
January 14, 2009
I will Tell You Who is Going to Get the Power - Jose Antonio Vanderhorst-Silverio
This is a comment posted under the article You Tell Us, by Willie D. Jones, that was first published in
January 5, 2009
Will Anyone Pay for the SmartGrid? - Jose Antonio Vanderhorst-Silverio
This is an invitation to readers to comment about the application of two social economists’ insights about the IOUs and
January 1, 2009
Renewable Power and Smart Grid as Parts of a Whole - Jose Antonio Vanderhorst-Silverio
It is argued that the smart grid is not the lifeline of renewable power. Instead, what´s holding both is the
December 22, 2008
Steven Chu: Four Years of Low Hanging Fruits - Jose Antonio Vanderhorst-Silverio
Dr. Steven Chu can get plenty of results in the next four years, by placing into operation the financial mechanism
December 14, 2008
Power Customers Begging Superior Solution Path - Jose Antonio Vanderhorst-Silverio
Restructuring has been done without an effective purpose: which is maximum social welfare. The Christmas tree purpose, as a result
October 21, 2008
U.S. Presidential Elections and the Need for a Global Energy Deal - Jose Antonio Vanderhorst-Silverio
The new president of the United States needs an Energy Secretary of high caliber that knows what he is talking
October 8, 2008
Index of 58 Comments Posted on M.I.T.'s Technology Review - Jose Antonio Vanderhorst-Silverio
The following index of comments posted on Technology Review (TR), during the past 10 month, is organized on titles' comment,
September 25, 2008
Electricity for the Digital Era, Part 2 - Jose Antonio Vanderhorst-Silverio
It is very clear that we need electricity for the digital era, where retail competition is about business model innovations
September 22, 2008
EWPC Blog's First Year Anniversary: Electricity for the Digital Era - Jose Antonio Vanderhorst-Silverio
About the same time energy costs stop declining, year alter year, more than 40 years ago, information costs have been
September 8, 2008
Are Vertically Integrated Utilities and/or Regulators Worried? - Jose Antonio Vanderhorst-Silverio
The EWPC article Let’s Avoid Many Expensive Fiascos seems to have worried vertically integrated utilies and/or regulators as it became
August 29, 2008
Let’s Avoid Many Expensive Fiascos - Jose Antonio Vanderhorst-Silverio
There is no need to cite any evidence “to enable a highly competitive, pro-consumer, complete and fully functional market architecture
August 26, 2008
An Overdue Debate: Customers’ Price Controls - Jose Antonio Vanderhorst-Silverio
The regulation vs. deregulation discussion was about the wrong question. An undiscussed issue during the debate, price control is the
May 5, 2008
EWPC Can’t Be a Market Winner - Jose Antonio Vanderhorst-Silverio
2GRs want to compete to develop market business model innovations for global retail market segments. On a given market segment,
April 29, 2008
Breakthrough Suggestions for Today's Utilities Environments - Jose Antonio Vanderhorst-Silverio
Business model competition for retail services is the key to a breakthrough in utilities services. Economies of scale and scope
April 23, 2008
Leadership Answers What to do First - Jose Antonio Vanderhorst-Silverio
The answer to the question of what to do first is for the global power industry to get out of
April 16, 2008
The Electricity Revolution - Jose Antonio Vanderhorst-Silverio
Warren Causey is reporting a technological revolution in the power industry, which is ahead of legislative and regulatory uncertainty and
April 10, 2008
Utilities and Regulators’ Value Destruction - Jose Antonio Vanderhorst-Silverio
Excessive marketing costs are identified by Marty Agius, under today’s regulations, which make utilities and regulators unable to add customer
April 9, 2008
EWPC’s Tipping Point - Jose Antonio Vanderhorst-Silverio
Aiming to be an irresistible article, it should help start a word-of-mouth epidemic of high proportions in the power industry.
March 30, 2008
EWPC Leadership (w/o links) - Jose Antonio Vanderhorst-Silverio
This is a synthesis (without any links) of the EWPC breakthrough, which brings absolute clarity and direction to enable a
March 26, 2008
Customer Reliability and System Reliability - Jose Antonio Vanderhorst-Silverio
Demand Integration is based on the fact that reliability has two sides: “On one side, system crashes are mitigated by
March 17, 2008
Well Beyond Low Reserves Managing - Jose Antonio Vanderhorst-Silverio
NONE of today’s utilities should be allowed to take as inevitable a bare bones approach to increase efficiency, introducing a
March 17, 2008
The Good, the Bad and the Ugly - Jose Antonio Vanderhorst-Silverio
The California commissioners need to shift their mindsets “to show that retail competition is not only possible, but absolutely necessary
March 13, 2008
Another EWPC Discovery II - Jose Antonio Vanderhorst-Silverio
EWPC is a high leverage intervention of the power industry as can be seen in the article Another EWPC Discovery.
March 10, 2008
Power Markets Essential Requirements - II - Jose Antonio Vanderhorst-Silverio
  Mission accomplished!!! This are comments received and responded under the article Power Markets Essential Requirements. Readers will find that the
March 7, 2008
The World Shouldn’t be Running Out of Electricity - Jose Antonio Vanderhorst-Silverio
According to Alan Caruba, America is running out of electricity, but in fact the whole world is running out of
February 28, 2008
Second 45 EWPC Blog Articles - Jose Antonio Vanderhorst-Silverio
  This collection of the links, date/time stamp, and introductory words of the second 45 EWPC Blog articles (46-90) is available
February 16, 2008
Uncertain Generation is Here to Stay - Jose Antonio Vanderhorst-Silverio
The discussion with Edward Bair in the EWPC article Two More Lessons from Denmark’s Wind Story ended with the statement
February 11, 2008
Innovation and Risk Taking in the Power Industry - Jose Antonio Vanderhorst-Silverio
Open Transmission Access was a great mistake made at the outset of restructuring to preserve utilities rights. To introduce innovation,
January 25, 2008
The End of Electric Monopoly Retail - Jose Antonio Vanderhorst-Silverio
By José Antonio Vanderhorst-Silverio, Ph.D. Systemic Consultant: Electricity Copyright © 2008 José Antonio Vanderhorst-Silverio. All rights reserved. No part of
January 24, 2008
PCT One of Many Business Model Innovations - Jose Antonio Vanderhorst-Silverio
California panel removes proposed mandate for utility-controlled thermostats - Bowing to public pressure, the California Energy Commission has removed its
January 20, 2008
Vertical Integration/Deregulation Debate vs. EWPC Generative Dialogue - Jose Antonio Vanderhorst-Silverio
Thanks Bob, I know that I will not be able to convince anyone that has its own agenda. That is
January 12, 2008
Making Electricity a Commodity - Jose Antonio Vanderhorst-Silverio
To make electricity a commodity, a proper market architecture and design has emerged in the last two years, as the
December 17, 2007
Market Research Doesn’t Work Yet for Demand Integration - Jose Antonio Vanderhorst-Silverio
Demand integration is a discontinuous innovation and the reason why the responses of customers are way off with respect to
December 15, 2007
To BE or NOT to BE Smart Metering - Jose Antonio Vanderhorst-Silverio
The lack of a consistent market architecture and design paradigm shift creates a Babel Tower in Ontario. There is a
December 13, 2007
Demand Integration is NOT the Province of Politics. - Jose Antonio Vanderhorst-Silverio
Demand integration and system reliability are not the provinces of politics, but of engineering systems and competition. FERC’s demand response
December 6, 2007
EEI California Dreamin’ - Jose Antonio Vanderhorst-Silverio
The U.S. power industry is dreaming that it is safe, when in fact the leaves are brown and the sky
November 19, 2007
K2007 Retailers’ Enterprise Solutions - Jose Antonio Vanderhorst-Silverio
An affordable model for retailers’ enterprise solutions business model innovations, based on Free Open Source Solutions, is reported by Bill
November 13, 2007
Disintegrating the Grid and Retail Worlds - Jose Antonio Vanderhorst-Silverio
Instead of trying to integrate the grid and the retail sides of the utilities, CIOs should take the results of
November 12, 2007
The Lecture on EWPC Re-Regulation - Jose Antonio Vanderhorst-Silverio
The new lecture on the power industry is about EWPC re-regulation. With the same old lecture, Professor Banks is correct
November 8, 2007
Let EWPC Come to Fruition - Jose Antonio Vanderhorst-Silverio
As ‘the heat of combat is over, and a decision’ about EWPC can now be reached, ‘all the bitterness disappears,
November 7, 2007
EWPC As The New Internet - Jose Antonio Vanderhorst-Silverio
EWPC is sufficiently flexible to enable a transformation ot the electric power industry into the new internet. EWPC As The
November 6, 2007
Positive Returns under EWPC - Jose Antonio Vanderhorst-Silverio
Positive returns in the power industry that existed under vertical integration are now gone. New positive returns will come from
November 3, 2007
Can We Concentrate on Results? - Jose Antonio Vanderhorst-Silverio
Can we concentrate on results? I would say YES, as the knowledge required to decide that the decade old debate
November 2, 2007
Customer Wallet Cleaning Problem and Solution - Jose Antonio Vanderhorst-Silverio
The vertically integrated utilities paradigm has been in a NO PROFIT ZONE for quite some time, letting utilities make a
November 1, 2007
The Natural Monopoly Transportation System - Jose Antonio Vanderhorst-Silverio
EWPC provides a new configuration in which the natural monopoly is reduced to the transportation system of the electric market,
October 28, 2007
Full Retail Choice Emerges - Jose Antonio Vanderhorst-Silverio
As customer value migrates a paradigm shift of full retail choice emerges under EWPC from R&D discoveries that allows retail
October 19, 2007
The Sixth Disruptive Technology - Jose Antonio Vanderhorst-Silverio
A set of 6 disruptive technologies can be identified “To do a better job of managing our dwindling energy resources…”
September 30, 2007
Conspiracy Theory Against Mr. X - Jose Antonio Vanderhorst-Silverio
A conspiracy theory against Mr. X being a Nobel Prize candidate is written to provide an ordered framework to understand
September 27, 2007
2nd Disruptive Technology Crossed Chasm - Jose Antonio Vanderhorst-Silverio
Distributed generation joins demand response as disruptive technologies keeps penetrating the power industry. It is shown the need to change
September 26, 2007
Engineers Needed for Lower Prices - Jose Antonio Vanderhorst-Silverio
The paradigm shift from the vertically integrated utilities to the electricity without price control paradigm will lead to lower costs,
September 25, 2007
Free Market and Central Planning, Under R1E2 - Jose Antonio Vanderhorst-Silverio
This is my synthesis of the EWPC paradigm shift that maximizes social welfare. Although it is a non-trivial subject, it
September 24, 2007
IMEUC: Unreliable Service and Price Spikes - Jose Antonio Vanderhorst-Silverio
In response to the suggestion by Mr. Jeff Presley about simulations, it is shown that there is not a need
September 23, 2007
So Far Just ONE Objection to EWPC as Winner - Jose Antonio Vanderhorst-Silverio
As tomorrow's deadline approaches, only Mr. Len Gould has provided a dissent to EWPC as the winning market for the
September 22, 2007
Extra, Extra… Goliath is Defeated Once Again! - Jose Antonio Vanderhorst-Silverio
Reprinted from Sept. 17th, 2007 for completeness. David has won! The Electricity Without Price Controls (EWPC) Breakthrough paradigm has finally
September 21, 2007
Solving Smart Grid Cost Recovery - Jose Antonio Vanderhorst-Silverio
To solve the Smart Grid cost recovery dilemma requires a restructuring of the electric industry in such a way that
September 20, 2007