David Jacobson's External Insights

Buyouts may increase productivity

Australian Venture Capital Association Limited (AVCAL) has released the Labour Productivity Study it commissioned from Meyrick and Associates.

Based on a study of seven Management Buyouts (MBO's) from 2001-2003 involving companies employing nearly 13,000 people, the study concludes that MBO's had productivity growth of 6.3%, almost twice the national average of 3.3%.

The study does not discuss the causes and makes clear that not all companies had the same results.

Fit and Proper Persons

In his recent speech giving a 12 month review of APRA, CEO John Laker reinforced APRA's concerns about the quality of directors and managers:

"A topic closely related to corporate governance is the fitness and propriety of individuals who hold positions of responsibility within APRA-regulated institutions. By international standards, the lack of a “fit and proper” prudential policy is a significant gap in Australia’s prudential framework. APRA has issued a discussion paper on this topic and we are now working through the many responses we have received. The approach we have proposed puts the onus on the regulated institutions themselves to develop a rigorous fit and proper policy and to adhere to it. APRA would not be vetting or approving individuals to act as responsible persons, other than our current arrangements for auditors and actuaries. However, we are likely to become more active in identifying and dealing with unacceptable behaviour."

The individual or the organisation?

Which is more important?

That is the question, at least in relation to Knowledge Management.

Law Tech Guru argues that KM should focus on the individual. Strategic Legal Technology disagrees: insitutional effort at KM must be paramount. Rick Klau also favours an individual focus.

There is no doubt in my mind that individuals (no matter how talented) perform better if they have organisational back up (be it research, marketing etc). It is two way: the individuals need to pass on their knowledge understanding that the organisation is structured so that they get the benefit of others' experience.

KM is not just a technology issue: technology is only a tool that helps individuals access and share knowledge.

Employee Weblogs Policy?

Even Bill Gates endorses weblogs for Microsoft employees, so do employers need weblog policies?

In this post Ross Mayfield discusses his frustration with the lack of a legal framework for innovative technologies:

" What's missing is a standardized weblog employee policy. Today, major tech companies like Microsoft and Sun are embracing external blogging and beginning to realize its benefits. Right now many companies are considering similar moves, but are held back by what they see as a legal grey area. "

Dave Pollard describes the benefits of using blogs in business.

Charles Handy

I have just read economist Charles Handy's "the elephant and the flea".

Mixed in with the story of his personal journey and his philosophy, the points I have noted include:

• the fox and hedgehog analogy (foxes are quick and agile and know many things but hedgehogs are very good at 1 thing and foxes can't eat them!);


• the need to read outside business literature to gain new insights into organisation structure and performance;


• and of course the elephant and the flea metaphor: even large organisations need irritant individuals or groups to introduce innovations or ideas essential to their survival.
  

Thinking Tools and Technology

This article by US lawyer Steven Harhai points out the benefits of using mind mapping tools such as MindManager.

My children have been using Inspiration since Grade 6 and it has helped them become better thinkers and planners.

E-voting

Whilst there are some companies in Australia promoting electronic voting software for company elections and AGM's (for example, SecureVote) this article in the ABA Law Practice Management Magazine, describes the USA experience with electronic voting at general elections.

The key quote:

"The DRE (direct recording election) systems ... leave no way to audit the authenticity of the final vote count. Aside from their hardware and software immaturity, DRE systems have been deemed fundamentally insecure. Here’s how David Dill, a Stanford University computer scientist, sees it: “If you look at the consequences for democracy, it’s terrifying. If we had a way to make [computerized voting] safe, believe me, we would. There’s no way to run a reliable election without a verifiable paper trail—that’s what these machines don’t have.”

Welcome

Jacobson Consulting Pty Ltd is now official. I am maintaining a part-time consulting role at Gilshenan & Luton but will extend to non-legal work in my consultancy. I've started off by doing a short course for myself at UQ...more on that later.