Summary and Review of Hot, Flat, and Crowded by Thomas L. Friedman

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This book summary and reviewed Hot, Flat, and Crowded was prepared by Ryan Charbonnet while an Accounting student in the College of Business at Southeastern Louisiana University.


Executive Summary

Hot, Flat, and Crowded by Thomas Friedman is an interesting book. It tells us about how if we, as citizens of Earth, don’t start managing our output of greenhouse gasses our children’s children will be out of luck. This is a re-release of his original Hot, Flat, and Crowded; he added two chapters to the beginning of the book to add more current issues to it. He is calling this period of economic trouble “The Great Recession” and also the transition into the “Energy-Climate Era.” Friedman almost blames this on the United States saying that the rest of the world is trying to become more Americanized. More and more countries around the world are growing at astronomical rates. In fact, India grew by 156 billion people in the last decade, that’s as many people as the populations of Britain, France, and Spain combined.

Friedman also discusses how economies around the world are bringing the masses out of poverty level incomes and bringing them into the middle class. This very rapid expansion of the middle class is more than the economy can take. Many of the developing countries around the world are rapidly expanding and burning as much if not more fossil fuels than America is.

We as Americans have come up with alternatives to these fossil fuels not to become completely independent from them, but to at least become less dependent on them. We are building fields on windmill stations, relying more on solar energy, and even building electric and hybrid cars. The windmills alone will help eliminate a lot of the emissions of green house gasses not to mention the amount of people starting to line their roofs with solar panels to break free from the power companies. The hybrid cars now are getting great mileage, some cars getting upwards of forty-five miles per gallon. Even SUVs’ are getting thirty-five plus miles per gallon.

Friedman also states and in my opinion is correct on that we as Americans, even though we are changing slowly to be more energy efficient, cannot preach to other countries about the consumption of fossil fuels because that would turn us into hypocrites.



The Ten Things Managers Need to Know from Hot, Flat, and Crowded.

1. If there is any way possible to become more energy efficient, do it.

2. There are many economies that are developing and may become as strong as America’s.

3. The urge for everyone to go “green” is getting bigger.

4. Big SUV’s for company vehicles are no longer acceptable.

5. By the year 2100, if we keep going as we have been, the temperature will have risen 3-5 degrees over pre-industrial conditions causing the ice caps to melt and water levels rising.

6. By the year 2050 the population of the world is predicted to be 9 billion people.

7. By 2020 the Chinese will have the largest bloc of tourists in the world.

8. From 1990 to 1999, global CO2 emissions increased at a rate of 1.1 percent per year. And from 2000 to 2006 we tripled that rate.

9. “Going Green” is now becoming a political issue.

10. Roughly 30 percent of our greenhouse gas emissions come from transportation.


Full Summary of Hot, Flat, and Crowded

I. Why Citibank, Iceland’s banks, and the Ice banks of Antarctica all melted down at the same time

This chapter describes that as Americans were borrowing more and more money and spending more and more money in the years preceding the recession that began in 2008 that more people became caught up in that lifestyle and the economy was booming. People became less responsible with their money and funding, and we entered a period of dishonest accounting which allowed firms or individuals to underprice risks, privatized gains, and socialize losses and get away with it.

The major problem with the economy right now started with the housing market. People were able to obtain sub-prime loans and mortgages on their homes even if they didn’t make enough money to pay the notes. The banks weren’t worried about what this could do because as soon as they made the mortgage they sold the mortgages on the open stock market and these were labeled as triple A which is the highest quality marking a stock can get in terms of risk.

The real problem came when the housing market collapsed and no one could sell their houses for what they played for them and weren’t able to pay the notes. The banks could no longer demand the note be played because the mortgages had been sold. Of course these were still being sold on the market as triple “An” even when the loans weren’t being met.

II. Dumb As We Wanna Be

This Chapter describes how the period from 11-9-1989 to 9-11-01 was a very interesting period in American history. He called it a period for the triumph for unrivaled American ingenuity, but also a period of crisis for the American spirit. We relied too much on credit and carbon, and forgot the core values that made America such a rich and powerful nation that was respected, trusted, and inspiring to many developing nations. Until the bottom fell out. Subprime mortgages and very unethical decisions flooded the market and causing it to collapse.

III. The Regeneration

This chapter is about we can achieve sustainability and the values that support sustainable behavior. Economical sustainability is when it protects, restores or regenerates the environment rather than degrading it. “The same could be said about the financial section, a market financially sustainable when it fosters practices, investments, and innovations that promote long term growth of the economy. “ This means that the only way for the economy to be able to handle itself it to be able to stand on its own feet for a long period of time, not just a few days or weeks.

IV. Today’s Date: 1 E.C.E. Today’s Weather: Hot, Flat, and Crowded

We’re going to call this “new era” the Energy-Climate Era. This is where we are in a climate change crisis, one in which temperatures are rising and the polar caps are melting. The five key problems in this book are finally specifically labeled in this fifth chapter; they are: “the growing demand for ever scarcer energy supplies and natural resources; a massive transfer of wealth of oil rich countries and their petrodictators; disruptive climate change; energy poverty, which is sharply dividing the world into electricity haves and have-nots.” There is also a rapid increase of plants and animals going extinct. If all of these problems aren’t dealt with properly, if just one isn’t dealt with properly it could cause irreversible conditions that will affect all generations to come.

V. Our Carbon Copies (or Too Many Americans)

In this chapter Friedman travels to several cities around the globe to describe what is going on in them. He describes how two cities, Doha and Dalian have changes so much that he hardly recognized them when he first arrived there after only a few years. These two cities have grown so much that there a re now skyscrapers that have been erected and are currently being built. These buildings and city expansions are a direct result of the average income per capita rising. Again Friedman is blaming these conditions on America because these people are aspiring for an American way of life.

VI. Fill ‘Er Up with Dictators

This chapter describes our dependence on foreign oil, and how badly we need it. As G.W. Bush said in 2006 America is “addicted to oil.” The chapter also tells that the middle eastern countries almost control us by providing us with our biggest and worst addiction, oil; The one thing that really and truly runs this country. Our oil addiction makes global warming worse and worse and OPEC, our petrodictators even stronger.

VII. Global Weirding : Climate Change

This chapter starts with the water temperature that fueled hurricane Katrina and if we had anything to do with them. The water temperatures during that week were a full two degrees higher than average causing the enormous storm to gain the power to top the levies and flood the city of New Orleans. This was an act of God as it is called. This cannot be neither controlled by nor caused by man. It later goes on to describe Al Gore’s Inconvenient Truth documentary and how the doubters of global warming are paid by the fossil fuel companies or republicans who refuse to believe it because they refuse to accept the only solution, stronger government and stricter policies.

VIII. The Age of Noah

This chapter is about how we as people are destroying plant and animal life around the world. About how we are destroying the ecosystems with expanding further and further out. It talks about how certain plants and fungi cure or help treat certain medical conditions and how we may never know what else is out there if we kill everything off.

IX. Energy Poverty.

The term energy poverty originated with Robert Freling talking about developing nations not having electricity and with him helping provide them with it. This is caused by the lack of power sources in these areas and/or the all of a sudden population booms in these areas.

X. Green is the New Red, White, and Blue

This chapter begins to tell us that we have the opportunity to change the situation. Friedman states that these conditions cannot be hidden any longer and that we NEED to change. He states that going “green” is “geopolitical,” “geostrategic,” ”capitalistic,” and “patriotic.” He talks about how going green will make America stronger and solve our problems by helping the world solve its problems, and we help the world solve its problem by solving our own problems.

XI. 205 Easy Ways to Save the Earth

Friedman “Googled” for books and magazine articles about how to save the earth. He found numerous articles about the topic and decided to accept that all of these articles may or may not be correct but all have the right intentions. He describes that even though we do “green” things it still isn’t enough it’s merely a mask of what needs to be done, but we’re working on it.

XII. The Energy Internet: When it Meets ET

“Revolution is not a dinner party, not an essay, nor a painting, nor a piece of embroidery; it cannot be advanced softly, gradually, carefully, considerately, respectfully, politely, plainly and modestly”- Mao Zedong. This quote simply implies that if we’re going to have a “green revolution,” then we can’t just say that we are. We have to be one hundred percent committed and all at once and to give it all we have. Otherwise it simply won’t work. This is the first of four chapters that describes the Clean Energy System. It describes that 30 percent of CO2 emissions come from the transportation section in our daily lives. Friedman talks about taking the emissions caused by buildings and transportation together and making them cleaner, safer electrons. It still sounds very far into the future for me though.

XIII. The Stone Age Didn’t End Because We Ran Out of Stones.

Again Friedman talks about this Clean Energy System but now how we will develop one or run one. He talks about how it would help America and the rest of the world but not how or who can develop this system. He describes that we have not developed this system to get the innovation that we need in clean power. He goes on to describe how every other field of business has seen innovation but not finding a more environmentally friendly way to supply us with clean energy.

XIV. If It Isn’t Boring, It Isn’t Green

This Chapter discusses how GE Transportation in Erie, Penn. has had a trade surplus with China, Mexico, and Brazil. It also discusses about how their innovation has created the most efficient and powerful locomotives on the market. The reason that GE transportation had to create such an efficient locomotive is because the EPA developed stricter emissions policies for locomotives. Freidman is implying that is the government would place these regulations on energy and electricity companies that they would have no choice but to develop new ways to create and deliver electricity.

XV. A Million Noah’s, A Million Arks

This Chapter is discussing biodiversity in depth with Indonesia and several other countries saying that everything is intertwined and correlated in one way or another. Think about it, we have to save the plants and animals from extinction because what do we as human beings consume to survive? Plants and animals.

XVI. Outgreening al-Queda

Friedman makes an interesting point about out-greening opponents. It can be a military movement. These officers came together looking for better ways to power their stations in the field whether it be dessert or jungle.

XVII. Can Red China Become Green China?

Now that China has a very capitalistic economy, they have been actively competing with the United States for several years now. China is one fifth of all humanity. China is now the world’s biggest carbon emitter. Friedman states if we can convince China to transition into clean power we could actually slow the rate of global warming.

XVIII. China For a Day

This last chapter in the book describes that china has banned the sale of thin plastic grocery bags in order to get consumers to use the reusable baskets or satchels that they purchase and bring back and forth to the marketplace with them. Friedman says this revolution cannot happen soon enough and that it will help the entire globe, but America has to do it first for others to follow.



Personal Insights

Why I think:

· The author is one of the most brilliant people around…or is full of $%&#, because:

Friedman is a very political man. He wrote this book on the basis of three hot topics today. I’m not arguing two of the points just that one has many fallacies. The main topic in my opinion of this whole book he was arguing was incorrect. Well, incorrect still maybe a little over board, I will provide you with information that will argue my point and you can make your opinion.

Global warming in my opinion is not happening; lets face it is an opinion right now after the last winter that we had. About thirty years ago there was massive concern with Global COOLING! That’s right many of us will remember this. A new ice age was predicted to fall upon us and the government decided that it needed to step in then. There was talk of the shorelines receding destroying lakes, streams, other estuaries, and wetlands. This is completely 100 percent opposite of what we’re hearing today with global warming. There are “To date, 19,700 scientists, including 2,660 physicists, geophysicists, climatologists, meteorologists, oceanographers, and environmental scientists, have signed a petition sponsored by the Oregon Institute of Science and Medicine that discounts global warming. Its accompanying report concludes:

There are no experimental data to support the hypothesis that increases in carbon dioxide and other greenhouse gases are causing or can be expected to cause catastrophic changes in global temperatures or weather. To the contrary, during the 20 years with the highest carbon dioxide levels, atmospheric temperatures have decreased.” On the other hand since 1997 only 1,559 scientists have signed a petition supporting global warming.

· If I were the author of the book, I would have done these three things differently:

1. I would have provided more concrete evidence on Global Warming.

2. I would have supported that the Earth’s climate actually has cycles and we are actually in a cooling phase.

3. Crowded I would have mentioned policies like China’s population control policy where families can only have one child, and this even becoming a problem over there.

· Reading this book made me think differently about the topic in these ways:

1. It made me realize that the world’s population really is growing at astronomical rates.

2. It made me research global warming on my own and realize that it’s just another government policy to add more taxes.

3. I actually researched the “Flat” issue on this book and found that Greece and several other countries’ economies are collapsing. Germany however is doing rather well right now.

· I’ll apply what I’ve learned in this book in my career by:

1. This book has taught me not to trust the housing market.

2. If I find myself in bank management one day, there will be extensive credit check on every mortgage that is applied for. The qualified will obtain them and the unqualified will not.

3. I will not worry about Global Warming; this is a political issue as you may tell I feel strongly against.

· Here is a sampling of what others have said about the book and its author:

“That environmental movement reserves a hallowed place for those books or films that have stirred people from their slumber and awoken them to the fragility of the planet: Rachel Carson’s “Silent Spring,” Bill McKibben’s “End of Nature” and, most recently, Al Gore’s Oscar-winning documentary, “An Inconvenient Truth.” Thomas L. Friedman’s new book, “Hot, Flat, and Crowded” may lack the soaring, elegiac qualities of those others. But it conceivably just might goad America’s wealthiest to face the threat of climate change and do something about it.” This comes straight from the New York Times and the review was written by Jonathan Freedman. He goes on to support his fellow journalist saying that even thought this book may not have the impact that Gore’s documentary did, but it does concentrate of probable solutions and allows him to “vent.” This word right here describes this whole book very accurately. This man wrote this book out of passion and decided that he would only prove his side and not the opposition.



Bibliography

Freedman, J. Eco-nomics. The New York Times. Retrieved May 10,2010, from

http://www.nytimes.com/2008/10/05/books/review/Freedland-t.html.

Ritenbaugh, R.T. A Cool Appraisal Of Global Warming. Retrieved May 10, 2010 from http://bibletools.org/index.cfm/fuseaction/Library.sr/CT/PW/k/737.

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Contact Info: To contact the author of this “Summary and Review of Hot, Flat, and Crowded,” please email ryan.charbonnet@selu.edu.



BIOGRAPHY
David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also maintains compilations of his student’s publications regarding book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).

AN INVITATION TO WORK WITH US, TODAY!
If you enjoyed this publication, why not make one of your own with us! Are you a college or university student from anywhere in the world who would be interested in publishing your work in an edited online journal appropriate to your topic? Such a move can help put muscle into your resume and make a great impression on potential employers and graduate schools (and needless to say – and perhaps most importantly in the age in which we live – likely be the first thing that companies/universities view about you when “Googling” you)! If so, we can help you get that first publication for free (and more if you desire)! Visit Wyld Publishing Services (http://wyldpublishingservice.yolasite.com/) for details. We can work with you to publish your quality essays, research articles/papers, reviews, etc. – and even audio and visual media and PowerPoint presentations – given our network of edited publications and relationship with publishers around the world who want to work with you and your work. Contact us today at dwyld.kwu@gmail.com

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Read more: http://bookstove.com/non-fiction/summary-and-review-of-hot-flat-and-crowded-why-we-need-a-green-revolution-and-how-it-can-renew-america-by-thomas-friedman/#ixzz0u9WTZAyZ

Originally Published: Summary and Review of Hot, Flat, and Crowded: Why We Need a Green Revolution- And How It Can Renew America by Thomas Friedman

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Ethics 101: Former LSU scientist appearing in videos on BP web site

Here's an ethical conundrum for you to consider - perhaps too heavy for a Monday morning! Click to watch the video from WWL-TV in New Orleans about the actions of Ivor Van Heerden, who was an outspoken hero in that aftermath of Hurricane Katrina (and later fired by LSU for being so outspoken), but is now being attacked for his appearances as a consultant/contractor for BP (everyone's favorite corporate punching bag these days in the wake of the Gulf of Mexico oil spill, I know!). Interesting case - watch:



The print version of the story can be viewed by clicking below:
Former LSU scientist appearing in videos on BP web site | wwltv.com | WWLTV.com News

So, whadya think? Post your comments here on the blog site and I will post a follow-up.

David


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Are You an iWorker?: Does Your Company Support - or Hinder - Your Use of New Technologies

Many, many of us are today what can be called iWorkers (and though I'm a Mac, the term has nothing to do with Apple - surprisingly enough!). Still, it's the way we get things done today, and technology will play an even more critical role going forward.

Here is a fascinating slide show put together by the folks at CIO Insight. It is based on a rather large, Unisys-sponsored survey of workers from 10 countries, and it has very interesting statistics on where we are today. Still a lot of Luddite managers out there - even in the tech field itself. See and click through the slides at:

http://www.cioinsight.com/c/a/IT-Management/iWorkers-CIOs-Are-In-The-Dark-About-TechSavvy-Employees-676020/?kc=EWWHNEMNL07152010STR1



Very interesting stuff - forward this post on to your colleagues - and particularly your managers! I'll look for your comments here on the blog site.

David

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Top Ten Management on Creating Effective Work Teams: An Overview of Creating Effective Work Teams

Image by Getty Images via @daylife

This overview of Creating Effective Work Teams was prepared by Elinore Hanby while a Journalism major in the College of Business at Southeastern Louisiana University.

Introduction

This article was produced to educate managers about the different types of work teams and the benefits of having work teams. This article also provides managers with information on how to create effective work teams in their place of business.

The Idea in a Nutshell

Teamwork is a human process and people have inherent team skills; teamwork happens spontaneously all the time, both inside and outside the workplace. Inside the workplace, however, teams are known as work teams. Work teams are groups whose members work intensely on a specific, common goal, using their positive synergy, individual and mutual accountability and complementary skills. Teams can do a variety of things. They have the ability to quickly assemble, deploy, refocus, and disband. They can design products, provide services, negotiate deals, coordinate projects, offer advice and make decisions. There are numerous benefits to having work teams, which is why most organizations today implement the use of such teams.

The Top Ten Things You Need to Know About Creating Effective Work Teams


1. There are four different types of work teams. First is the problem-solving team, which is a team from the same department or functional area that’s involved in efforts to improve work activities or to solve specific problems. Next there is the self-managed work team. This team is a formal group of employees who operate without a manager and are responsible for a complete work process or segment. The third type of team is the cross-functional team, which is a work team composed of individuals from various specialties. Finally, there is the virtual team, which is a type of work team that uses technology to link physically dispersed members in order to achieve a common goal.

2. Teams must have clear goals. If a team is to be effective, a team must have a clear understanding of the goal that they are working to achieve. Members must be committed to the team’s goals. They must know what they are expected to accomplish. Team member’s must also plan and understand how they will work together to achieve their goals.

3. Team members must have relevant skills. Effective teams are composed of competent individuals who have the necessary technical and interpersonal skills to achieve their goals while working well together. Members may have the technical skills, but they also must possess the interpersonal skills needed to work well as a team member.

4. There must be mutual trust within a team. Effective teams are characterized by high mutual trust. Members must believe in each other’s abilities, character, and integrity. Trust, however, isn’t something that is secure. Trust must be maintained and this requires work on every member’s part.

5. A team must have unified commitment. A unified commitment is characterized by dedication to a team’s goals and a willingness to expend enormous amounts of energy to achieve them. Members of an effective team are loyal and show dedication to the team. They are willing to do whatever it takes, and work their hardest, to help their team succeed.

6. Good communication is a must if a team is to be effective. Effective teams have open, participatory communication among members. Members generally know what is going on and are able to convey messages, both verbally and nonverbally, between each other in clearly understandable ways. Members also give feedback to guide one another and correct misunderstandings.

7. Team members must possess negotiating skills. Effective teams are always making adjustments and must be flexible; therefore members must be open to negotiations. It is important that members are able to confront and reconcile differences.

8. Leadership is always important in effective teams. Leaders can help motivate members to follow them through difficult situations. Leaders do this by clarifying goals, assuring that change is possible, increasing self-confidence of team members and helping members to more fully realize their potential. Effective leaders are important to help guide and support a team, but should not try to control a team. It is also important for teams to share leadership roles. Each member should feel responsible for team leadership. One person should not dominate.

9. All effective teams need support, both internally and externally. Internally, the team should have a sound infrastructure, a clear and reasonable measurement system that team members may use to evaluate their overall performance, an incentive program that recognizes and rewards team activities, and a supportive human resource system. The right infrastructure should support members and reinforce behaviors that lead to high levels of performance. Externally, managers should provide the team with the resources it needs.

10. Effective teams must be experimental and creative. Well functioning teams often experiment with different ways of doing things and encourage creativity. Creativity is important in order to think of new ideas for the future. Team members are encouraged to think outside the box.

The Video Lounge

This is a very informative video, which explains some of the benefits of creating teams and provides 9 helpful tips for building great teams.




My Take

The majority of companies and organizations today do use work teams, and I believe there is good reason for that. Teams have proven to be extremely effective and beneficial. I strongly concur with the utilization of work teams in businesses and believe they are extremely helpful and important. Humans do have natural team-building instincts and many work better when they have the support and guidance of team members. Using myself as an example, I prefer being part of a team as opposed to working on my own. I feel more motivated, confident and optimistic. I enjoy the social connection and the feeling of being part of a team, with members all working toward the same goals. While not everyone enjoys working in teams, many people do, and this is one of the many reasons teams are so effective.

References

Coulter, Mary, and Stephen P. Robbins. Management. 10th. Upper Saddle River, New Jersey: Pearson, 2009.

Kazemek, Edward A. (1991). Ten criteria for effective team building. Healthcare Financial Management. Retrieved from http://www.allbusiness.com/human-resources/employee-development-team-building/255479-1.html

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Contact Info: To contact the author of “Top Ten Management on Creating Effective Work Teams,” please email Elinore Hanby at elinore.hanby@selu.edu or elliehanby@yahoo.com.

BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also maintains compilations of his student’s publications regarding book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).

AN INVITATION TO WORK WITH US, TODAY!

If you enjoyed this publication, why not make one of your own with us! Are you a college or university student from anywhere in the world who would be interested in publishing your work in an edited online journal appropriate to your topic? Such a move can help put muscle into your resume and make a great impression on potential employers and graduate schools (and needless to say – and perhaps most importantly in the age in which we live – likely be the first thing that companies/universities view about you when “Googling” you)! If so, we can help you get that first publication for free (and more if you desire)! Visit Wyld Publishing Services (http://wyldpublishingservice.yolasite.com/) for details. We can work with you to publish your quality essays, research articles/papers, reviews, etc. – and even audio and visual media and PowerPoint presentations – given our network of edited publications and relationship with publishers around the world who want to work with you and your work. Contact us today atdwyld.kwu@gmail.com.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Read more:
Top Ten Management on Creating Effective Work Teams: An Overview of Creating Effective Work Teams

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Reverse Auctions: Are They Well-suited for Procuring Telecom Services?

What is appropriate for procurement through competitive bidding? Often, that depends on who you’re talking to – and what their motivation might be. Here we address the subject of telecom services and what the impact of using reverse auctions can be on purchasing these important, but costly, services today.


What can – and cannot – be the subject of reverse auctions always provokes an interesting debate – whether it is standing in a group by the finger foods at a conference, in a classroom setting doing training, or here on the Web. The truth is that quite often, whether from limited perspectives/experience or from corporate self-interest, organizations will fall into the trap of thinking that what they need to buy in terms of goods and services are not the “right fit” for reverse auctioning.

Telecom services are an interesting area. What can be more generic than voice/data/wireless services – so long as the service levels are specified and vendors are properly vetted and screened. However, Veramark Technologies, Inc., (http://www.Veramark.com/) a Rochester-NY based provider of Telecom Expense Management (TEM) and Call Accounting has recently taken on the subject in their blog post (read below):

Reverse Auctions – Do They Have a Role in Telecom Expense Management?
(http://blog.Veramark.com/2010/07/reverse-auctions-do-they-have-a-role-in-telecom-expense-management.html)

Not surprisingly, Veramark’s perspective is that telecom services are “too complex” to be subject to reverse auctioning. They state:
Reverse auctions are often not the right choice for sourcing telecom services because there are typically few potential providers, which will limit the price impact of competitive bidding. But more importantly, the variety and complexity of carrier contracts cannot be negotiated in the context of a simple bidding war. They typically call for face-to-face negotiations in which the customer’s greatest asset is knowledge of their own usage and spend data along with the carrier’s performance history. While rates are important, the ultimate cost for telecom services is a product of SLAs (service level agreements), service plan selections, and other negotiated terms and conditions.

Hmmm. I would argue that this is just the type of service that should be put to the test through competitive bidding. With proper up-front work done both to iron-out very clear specifications (i.e. the service level agreements) and to ensure that the potential suppliers fully understand – and can fully comply with them, then a reverse auction will ensure that the organization is getting the absolute best market price on what can be a very significant part of its overall procurement outlay.

Think about how much your organization is spending in total for telecom services – what would it mean if you could cut 5-10-20% off that amount. If you are in the private sector, this could have significant impact on your bottom-line. In fact, it could very well be the difference between being in the black (being profitable) or staying in the red (losing money)! And if you are a procurement executive in the public sector, every dollar saved on what are – in essence - ceteris paribus (so long as the service is there – are you listening AT&T?) - generic services, this will save taxpayer dollars in a time of great budget challenges. These savings are especially significant today, as savings of thousand – perhaps tens or even hundreds of thousands of dollars when we are talking about telecom spending – will allowing your agency to have resources for other pressing needs – and make the procurement area – and yourself – a hero!

So, what are you doing to explore how to strategically apply reverse auctions in your procurement operations? Contact us here at the Reverse Auction Research Center http://reverseauctionresearch.blogspot.com/ to learn more about how to learn more about how leading companies and government agencies – both large and small – around the world are leveraging the power of reverse auctioning to their benefit.

BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).


Read more:
Reverse Auctions: Are They Well-suited for Procuring Telecom Services?

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