Nesmith's Notes

Joseph Fuller and Michael C. Jensen are suggesting that managers begin discussing their business’ strategy and get out of the earnings guidance game.  In their recent paper, Just Say No to Wall Street: Putting A Stop to the Earnings Game, they tell managers to stay away from earnings guidance and provide information about strategic goals, main value drivers, the risks associated with these drivers and how management intends to address these risks.

They see earnings guidance often results in a no-win game, with expectations met only by abandoning long-term strategy and destroying value in search of short term EPS goals set by folks outside the corporate halls.

I just received my GRI G3 reporting certification from the course I took last week.  The course was delivered in Colorado for the first time due to the efforts of CORE with support from Deloitte.  Lead, out of Canada, provided the training based on materials from the Global Reporting Initiative.

The instructor was well informed, as were the 26 attendees. Lively discussion, along with some good and some not so good exercises provided us all with a great understanding of the G3 framework and the processes companies should put in place to engage stakeholders, prioritize initiatives, disclose results, share goals and increase sustainability through management processes and transparency.

Global Reporting Initiative
The Sustainability Reporting Framework – of which the Sustainability Reporting Guidelines are the cornerstone – provides guidance for organizations to disclose their sustainability performance. It is applicable to organizations of any size or type, and from any sector or geographic region, and has been used by thousands of organizations worldwide as the basis for their sustainability reporting.

The Daily Camera reports the University of Colorado’s Boulder campus has received another green designation. The Sustainable Endowments Institute, a special project of Rockefeller Philanthropy Advisors gave CU the highest grade awarded on its 2010 report card. And for the second year in a row, CU was named an Overall College Sustainability Leader.

CU this fall was ranked by Sierra magazine as the No. 1 green university in the nation.

The rating was based on an independent review by the Sustainable Endowments Institute and responses by CU-Boulder officials to 120 questions assessing sustainability in the categories of administration, climate change and energy, food and recycling, green building, transportation, student involvement, endowment transparency and shareholder engagement and investment priorities.

Wow! What a powerful story!

William Kamkwamba, a boy in rural city in Malawi, Africa, is forced to drop out of school after the deadly 2001 drought nearly killed him and his family and destroyed the little value they had created farming corn and tobacco.  Without the $80 to pay tuition, William turned to the library, where he became fascinated with windmills.

Determined to prevent his family from experiencing the drought driven hunger again, William decided he would produce the electric power needed to pump water to irrigate their fields.

With no money to buy parts, William used materials from a junkyard and his imagination to build this windmill.   Improvising an old bicycle with flattened PVC pipe for blades and a bicycle generator to produce the electricity, William was able to light his room and tell his story to the world.

Some important Brain Functions Improve with Age according to findings presented in HBR’s Conversation blog.

In areas as diverse as vocabulary and inductive reasoning, our brains function better than they did in our 20s. As we age, we more easily get the “gist” of arguments. Even our judgment of others improves. Often, we simply “know” if someone — or some idea — is to be trusted. We also get better at knowing what to ignore and when to hold our tongues.

It’s important to understand your strengths and the strengths of those around you.  I find it encouraging that not only do reasoning and therefore decision making skills getting better, the all important ability to determine the people with the right skills to compliment your own abilities grows as well.  But just like the 40 year old quarterback who thinks he’s still in his prime – Oh, that’s right, he had a record breaking year, didn’t he?  Well, there are always exceptions, right? -, we have to know when it’s time to pass the torch for some activities to others.  Here is how one manager does it:

When gathered to discuss a problem, he keeps his “mouth shut” and listens. Even though — more often than not — he has a good solution, he waits. He does not speak.

“I find it works best if I let the younger workers talk first, wrestle with the problem in their own way,” he told me. “Then after a while, I say what I think might work. I’m not sure why, but this seems to work best and to help us all learn and solve the problem better.”

In fact, though he did not realize it, the executive was using the best parts of his calmer and more experienced middle-aged brain to help him manage his situation — and get better results.

It’s true that by midlife our brains can show some fraying. Brain processing speed slows down. Faced with new information, we often cannot master it as quickly as our younger peers. And there’s little question that our short-term memories suffer.

We’ve all seen it where lots of information compiled to make a decision did little to suggest an obvious course.  And that was 20 years ago, when it took leg work to gather that information, not just a few keystrokes in your browser.  Getting stuck in analysis was a problem thousands of years ago and Stibel’s article in the Harvard Business Review blog – The Conversation reminds us to avoid it.

I have to admit, when I read the head line I chuckled thinking, “Wow, I’ve worked with some really wise people and I bet when they see this they’ll think the same about me”.

Seth Levine has posted Marion Jenkins’ detailed rebuttal to HB 1192.  Mr. Jenkins suggests this tax legislation should be opposed due to a wide range of problems, including it being a new tax which should go before all voters to the complexity in determining when a lump of software code is deemed “standard” and subject to these new taxes versus custom code that is not to be taxed.

The bottom line is really about jobs in Colorado.  And with this bill, the jobs which are easily moved to more business friendly states will start that migration. The Sixty-sixth General Assembly can choose to address the issues with the state budget directly and bring the issues to the people, or they can choose to tear down the reasons businesses choose to be in Colorado.

Some things are worthy of a second look.  Check out this educational advertisement for the water millions walk miles to taste.

L’DESH FRESH

Growing up in the South, you don’t have a lot of opportunities to test out your winter gittin’ around skills.  And with a big snowstorm about to him my hometown area, here are a few hard learned lessons about moving around in the white stuff.

Cowboy boots and ice don’t mix.

Always wipe the snow off the top of the car door before you open it.  Or just wear your rain pants everywhere.

Drive like you’re in your bass boat.  Look way out front and pretend you got little or no brakes.

Them big ‘ol four wheel drives are great at getting ya’ going, but ain’t no help at all when it comes to stopping.

And the number one thing to remember:  It’s not all about how well you can drive in the snow, it’s more about how the folks around you drive in the snow.

Now that I really think about it, you may want to stay home if you can.

Most of us like to name drop, at least a little.  And so it is with great interest that we follow the careers of former colleagues.  Here is Chad Evans, taking one deep at the iPad launch.  Watch him here.

It appears Starbucks customers in New York are able to make intelligent decisions when provided with the information about the calorie content of food on the menu.

A new study by Stanford released Jan. 6 examined consumer behavior before and after calorie counts were posted, and determined that when restaurants post calories on menu boards, there is a reduction in calories per transaction.  Based on transaction data provided by Starbucks, researchers from the Stanford Graduate School of Business found that calorie-posting in New York City in 2008 led to a 6%  reduction in calories per transaction.

I suspect this surprises few of us.  Yet, opponents of posting this information claim it is available elsewhere and therefore not needed in the cafe.

Studies continue to reveal this is just not the case.  Information available in real time makes a difference in our buying decisions.  The same is true for energy conservation efforts.  Just presenting people with details about the energy they are using while they are using it, changes behaviors that on average reduce energy consumption by 3-5%.  Give folks simple ideas to reduce consumption further and the vast majority of us will do so.  That’s why we are working with companies to make energy usage information (and comparisons across companies, departments and work areas) available to employees.

In a move clearly designed to keep up the pressure on the US to take strong action on climate change, UN climate chief Yfo de Boer stated, “Whatever route is taken, the president of the United States committed to a 17 percent emissions reduction in Copenhagen.  The president of the United States committed to more ambitious emissions reductions for 2030 and 2050. And it is those statements to which the international community will hold the government of the United States accountable.”

via U.S. Bound by Obama\’s Copenhagen Emissions Pledge — U.N. Official – NYTimes.com.

The term “smart grid” is shorthand for a number of technologies intended to automate and digitize management of electrical power. By computerizing the 20th century electrical system, utilities and others in the power industryhope to manage and control electrical output more efficiently and reliably. Though smart grid sounds like it’s a single system, it’s more an array of different tools and technologies, from smart meters to solar power, all designed to reduce costs, waste less energy, and provide better networking and communications between homes and utilities.

Smart-grid spending to hit $200 billion by 2015 | Green Tech – CNET News.

The U.N.\'s leading panel on climate change has apologized for misleading data published in a 2007 report that warned Himalayan glaciers could melt by 2035.  In a statement released Wednesday, U.N. climate chiefs apologize for glacier error – CNN.com the Intergovernmental Panel on Climate Change (IPCC) said estimates relating to the rate of recession of the Himalayan glaciers in its Fourth Assessment Report were “poorly substantiated” adding that “well-established standards of evidence were not applied properly.”

In an attempt to put the proper spin on this, IPCC chairman, Rajendra Pachauri admitted errors and according to Agence France-Presse, stated, “Theoretically, let’s say we slipped up on one number, I don’t think it takes anything away from the overwhelming scientific evidence of what’s happening with the climate of this earth,” he said, according to Agence France-Presse.

Errors and mistakes happen in science research as in all other areas of human involvement.  And when they do, it is best to own up to them quickly and with humility.  This seems to be as important for climate science, maybe even more important, because predictions are so difficult, hindsight is always 20/20 and there are so many groups wanting to poke holes in the research and predictions.  Some may even claim that early predictions were intentionally exaggerated in order to gain more attention.

In any event, those wanting to really understand the issue are no more likely to take this error and believe all the science is suspect, than they would take the worst case prediction and ignore everything else.

The first ever Yellowstone BioBlitz took place in August and uncovered more than 1200 species in a two-square mile area of northern Yellowstone, including several species not previously known to exist in the park. While Yellowstone’s wolves, bison, bears, and elk typically receive the most attention-both from scientists and tourists-the focus of the BioBlitz was on decidedly smaller and lesser-known creatures. Yet to scientists and park officials the findings were no less exciting. Findings included microscopic worms, mushrooms, a bluish-green lichen, a slender grass, and a colorful tiger beetle. 373 plant species

86 mushroom types
46 kinds of bees
5 kinds of bats (I know a 9 year old who would love to see these)
24 butterflies
Over 300 kinds of other insects 

This rich biodiversity provides the ecological building blocks upon which the larger, more charismatic mammals depend for survival. The BioBlitz results will help park management better understand ecosystem dynamics and potential threats to ecosystem stability. You can read more about the BioBlitz at the Greater Yellowstone Science Learning Center.

From the Yellowstone Association’s Dec. ‘09 E-Newsletter

The 45th Annual Event Sponsored by the Business Research Division in the Leeds School of Business and BBVA Compass
The annual forecast of the state’s economy includes snapshots from specific counties and regions around the state, as well as updates on international trade, population, labor force and personal income growth, and a general outlook on the national economy.
December 7
Grand Hyatt Hotel, 1750 Welton Street, Denver
1:00 p.m. Welcome by Leeds School and BBVA Compass
1:15 p.m. Colorado economic outlook for 2010
         Richard Wobbekind, Economist, Leeds School of Business
         John Lymberopoulos, Professor Emeritus, Leeds School of Business
2:00 p.m. Question and answer panel session
2:30 p.m. Keynote address: Nathaniel Karp, Chief U.S. Economist, BBVA Compass
3:15 p.m. Concurrent discussion sessions:
         The Future of Uranium, Renewables, and Coal–Impacts on Colorado’s Economy
         Moderator and Speaker: Vince Matthews–Colorado Geological Survey
         Panel: Jim Burnell–Colorado Geological Survey
                    Bob Burnham–Wood Mackenzie
                     Jeff Lyng–Governor’s Energy Office
4:45 p.m. Networking reception
There is no charge for this event. No RSVP is necessary. Download printable postcard invitation.
More info:

During the third quarter of 2009, a total of 35 energy and environmental companies received $421 million in new venture capital financing, representing an 8% decrease in the number of companies being funded and an 8% decrease in the total amount funded to the four sectors of Alternative Energy, Clean Tech, Energy and Environmental.

Alternative Energy companies showed the only deal funding volume percentage increase of the four categories, with a 20 % increase quarter over quarter. The Clean Tech sector showed a sharp decrease in activity, with an 86% decrease in amounts funded. Energy funding amounts were also down, with an 18% funding decrease and the number of companies funded decreasing by 27%.

During the quarter, Software company fundings represented the second largest sector, raising $610 million between 97 companies. This activity represented an increase of 10% in total funding amount and a decrease of 22% in the number of companies funded.
The average financing round size reversed its previous decline and rose sharply, from $4.7 million in Q2 09 to $6.3 million in the current quarter.

The U.S. Department of Energy (DOE) will provide up to $338 million in funding for the exploration and development of new geothermal fields and research into advanced geothermal technologies.

These grants are directed toward identifying and developing new geothermal fields and reducing the upfront risk associated with geothermal development through exploration and drilling projects and data development and collection.

In total, 123 projects in 39 states will receive funding from these grants.

President Obama set to be in Copenhagen on Dec. 9th with an offer to cut US GHG emissions in the range of 17% from 2005 levels by 2020. 

The DOE is investing up to $1.18 million for a project in Boulder, Colo. to upgrade the 100-year-old Boulder Canyon Hydroelectric Project by replacing two older turbines with a single unit. The new turbine is expected to operate at a wider range of flows and higher efficiency ranges, resulting in an increase in annual generation of 11,000 MWh (30% increase).

Along with 6 other projects the DOE is investing $30.6 million to create an additional 187,000 MWh/year, while replacing turbines that are as much as 90 and 100 years old.  Clean (cutting 110,00o tons of CO2 emissions/year), cheap (adding generation at less than 4 cents per kWh) and lowering operating and maintenance costs.  

In Massachusetts, a proposed wind farm called Cape Wind was dealt a blow last Friday that will delay what would be the first offshore wind farm in the U.S. The Massachusetts Historical Commission agreed with local Indian tribes who claim that the location for the wind farm should be considered for listing in the National Historic Register because the Wampanoags’ history and culture are “inextricably linked to Nantucket Sound,” according to the opinion.

“If the tribes are successful, that would have a severe chilling effect (on the entire wind industry) because tribes up and down the coast could make the same claim,” said Mark Rodgers, the communications director for Cape Wind. “Never before has an open ocean been caught up in this kind of declaration.”

Then again, never before has a rare combination of private and government investment pumped so much into alternative energy projects. As these projects grow in frequency and scale, a new breed of NIMBY (not in my backyard) is emerging: Opponents of wind or solar installations who generally support renewable energy, just as long as they are built somewhere else. Coal and nuclear plants, it turns out, aren’t the only energy facilities people don’t want built in their backyards…or coastlines.

The Cape Wind fight, in particular, has brought together a testy combination of excellent wind conditions, opposition from well heeled local residents including members of the Kennedy clan, and a surprising assertion of Native American rights.

via .

Head over to the EPA’s Fuel Economy website and learn ways to get the last few miles out of every drop.  You’ll learn how to drive more efficiently, like taking the golf clubs out of the trunk when snow’s on the ground and slowing down just a bit.  And ways to not only make the gallon go farther, but also your tires and car with a few regular maintenance actions.

The University of Mississippi is using data from SmartSynch’s smart meters and passing it to dashboards for campus operations personnel to monitor, analyze and act via RSS and social networking tools like Twitter and Facebook.  As a part of the university’s Red, Blue and Green initiative, students and faculty can register with the school’s Green Initiative website and get real time view and comparisons of energy usage around the campus.

NIST released a draft report on the SmartGrid interoperability standards yesterday.  The roughly 80 initial standards and 14 priority action plans are available for public review and comment for 30 days.  Following this comment period the first phase of NIST’s 3 phase approach will be completed with the final release of the NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0.

It appears that people don’t only wish to keep up with their neighbors with bigger homes and wider if flatter TVs.   This seems to be true with energy efficiency as well. 

From hotels to neighborhoods, the power of influence work by Dr. Robert Cialdini is being put to the test with positive results.  Looks like water may be next.