David Jacobson's External Insights

April podcast

My second podcast is now available!

You can now listen to me while you eat your lunch (just turn up your speakers) or download it to your mp3 player and listen while you commute or go for a walk. Let me know what you think!

This month I discuss my collaborative compliance wiki, marketing, web 2.0 and communities of practice and what all that has to do with law, compliance and improving your business.

The podcast goes for 10 mins 35 seconds and is 9.69mb.

Listen now

Our networked world

One of 2007's key technology trends is collaboration and communities.

We are able to work on a project online with colleagues  and meet friends online.

We multitask a range of devices.

Forbes magazine's latest issue features Networks.

Sonme of the articles worth reading include:

• Seth Godin Your product, your customer (marketing in a networked world)

• John Chambers Guts and Glory (the technology revolution)

• Sherry Turkle Can you hear me now?  (what sort of people does technology turn us into)

Do you have a consigliere in your top management team?

In Blue Ocean Strategy the authors argue that it is important to include a consigliere in your top management team as well as executives with functional skills such as marketing, operations and finance.

Your consigliere (or general counsel) will not be as actively involved in the business as the Godfather's Tom Hagen , but should have a good understanding of the business, the ability to identify risks for your business and recommend (and argue objectively) a strategy to manage them.

It is dangerous to tack on general counsel, company secretary and compliance type work to a CFO position. If you can't afford a full-time general counsel, think about a part-time position or coming to an arrangement with your external lawyer.

Giving interesting presentations

It's easier to write a long letter than a short letter.

It's easier to use a powerpoint template with bullet points than design a visual slide.

It's easier to use technical jargon than common language.

But will anyone understand it?

Is there a story you can tell?

Everyone likes a story.

If you've chosen it well.

With care.

It will be accepted.

And understood.

I recently spoke for 3 hours (broken up into a 45 minute formal talk, a case study and a discussion with a coffee break) on a legal topic.

Imagine the possible boredom.

I used slides with pictures.

I told stories relevant to my audience.

They asked questions.

The feedback was good.

I'll do it that way again.

Why managers shun management books

Powerpoint comedy

Planning for essential services

Water, power and transport have moved from being the unspoken assumed essential city services to services which are showing signs of stress.

And it's a worldwide issue: In Lights!Water!Motion! in Strategy+Business the authors argue that over the next 25 years, modernizing and expanding the water, electricity, and transportation systems of the cities of the world will require approximately $40 trillion. 

Where do we start? Read the article.

AWB legal fallout: sued on 2 continents

Two legal actions against AWB are reported to have been commenced.

Shareholders class action

A group of AWB shareholders have commenced proceedings against AWB in the Federal Court in Sydney.

Since the commencement of the Royal Commission of Inquiry into AWB’s conduct under the UN’s Oil for Food Program on 16 January 2006, the share price of AWB Ltd. has fallen nearly 42% from $6.40 on 12 January 2006 to $3.70 as at 13 April 2007

The claim seeks compensation for those represented in the action of the difference between the amount that they paid for their shares and the amount that they would have paid had the true value of the shares been charged at the date of purchase.  Alternatively, the claim is for the difference between the price they paid for their shares and the price for which they sold their shares after the Cole Inquiry commenced.  The claim also seeks damages for the value of the opportunity lost by the AWB investment.

The action is funded by IMF (Australia) Ltd.

US farmers sue AWB

ABC News reports that US wheat farmers have launched legal action against AWB in Manhattan in the US and accuses AWB and its US subsidiary of breaching antitrust and racketeering laws.

"A lawyer for the farmers says they will be seeking at least $US10 million in damages because they say AWB locked them out of the Iraqi market by paying kickbacks to corrupt officials."

UPDATE 18 April: The Age says the action was filed by Washington law firm Cohen, Milstein, Hausfeld & Toll in the US District Court in New York.

Doing business in India

India is the fourth largest economy in terms of purchase power parity and the tenth most industrialized country in the world. The World Bank has described India as an "Asian giant" which had risen from 12th to 10th in dollar terms between 2003 and 2004 with the GDP of India overtaking Korea and Mexico.

Issues Relevant for Foreign Companies Doing Business in India (pdf), an article by Shishir Sharma, highlights some of the key legal issues in foreign investment, competition, taxation, employment and intellectual property protection that would be of concern to a foreign investor looking to invest into India.

While barriers to foreign investment have been reduced, "there are still industries where foreign investment is either prohibited (e.g. multi-brand retail) or the quantum of permissible foreign investment is regulated (e.g. telecom)." 

Australia and climate change

The Intergovernmental Panel on Climate Change Working Group II has released its Report " Climate Change 2007: Climate Change Impacts, Adaptation and Vulnerability " (pdf).

YouTube video of press conference. Australian political reaction (ABC News)

What is the forecast for Australia?

"As a result of reduced precipitation and increased evaporation, water security problems are projected to intensify by 2030 in southern and eastern Australia ...

Significant loss of biodiversity is projected to occur by 2020 in some ecologically-rich sites including the Great Barrier Reef and Queensland Wet Tropics. Other sites at risk include Kakadu wetlands, south-west Australia...

Ongoing coastal development and population growth in areas such as Cairns and Southeast Queensland (Australia) ...are projected to exacerbate risks from sea-level rise and increases in the severity and frequency of storms and coastal flooding by 2050.

Production from agriculture and forestry by 2030 is projected to decline over much of southern and eastern Australia... due to increased drought and fire.

The region has substantial adaptive capacity due to well-developed economies and scientific and technical capabilities, but there are considerable constraints to implementation and major challenges from changes in extreme events. Natural systems have limited adaptive capacity. '' (page 11)

Working Group III Report on "Mitigation of climate change" will be released on 4 May. It will analyse mitigation options for the main sectors in the near term, addressing also cross sectorial matters such as synergies, co-benefits, trade-offs, and links with other policy objectives. It will also provide information on long term mitigation strategies, for various stabilization levels, paying special attention to implications of different short-term strategies for achieving long-term goals.

Australia's Global Information Technology Ranking

Australia's ranking in The Global Information Technology Report 2006-2007 has sparked a political debate about Australia's broadband network (both coverage and speed).

For the 2nd year in a row Australia is ranked 15th.

The Report uses the Networked Readiness Index (NRI) to measure the degree of preparation of a nation or community to participate in and benefit from ICT developments. The NRI is composed of three component indexes which assess:
- environment for ICT offered by a country or community
- readiness of the community's key stakeholders (individuals, business and governments)
- usage of ICT among these stakeholders.

See Business Week analysis.