Tag Archives: capacity

The Social Costs of the Hardware Revolution – A Postscript

For now, this can be only a short postscript to what I had to say earlier today about the CNN Money article by John Hagel and John Seely-Brown on “the hardware revolution.” It has to do with a question that occurred to me as I read, and to which I don’t yet have anything like an adequate answer. That will take some research. But I at least want to articulate the question.

Startups and smaller companies can now play in the hardware space in part because the barriers to entry have been lowered, Hagel and Seely-Brown observe. There are a number of factors at work here. New and cheaper technologies from 3D printers to more user-friendly software put the design and manufacture of hardware within reach of smaller companies. And “a new class of factories” will produce the smaller orders that new entrants and entrepreneurs typically require:

New infrastructural elements have also helped new hardware products move from the hobbyist’s basement to the startup garage. Before, to get a contract manufacturer’s attention, you had to commit to producing high volumes (say 50,000 or more units). But a new class of factories — mostly in China and Mexico — will manufacture batches as small as 5,000 units. By filling low-volume orders, these factories have filled an important structural hole in the market: They allow entrepreneurs to launch new products for small consumer groups with little investment.

My question is whether conditions and, for that matter, sourcing practices in this new class of factories, and the more fluid hardware market they serve, are not going to be terribly difficult to monitor. We’ve seen how challenging it is even to ensure fair labor practices in large-scale manufacturing facilities in China used by major global technology brands; now, as smaller-scale manufacturing facilities proliferate and Mexico becomes a technology “quicksourcing” destination for American companies, the problem will no doubt be aggravated.

The reasons for this are probably obvious. I would frame the issue in a few ways. First, how much visibility do these smaller players actually have into their supply chains? Second, how much leverage do they actually have with their manufacturers, since they are only placing small orders, and, depending on their success, may or may not be repeat customers? Third, there’s a question about whether these small businesses — the small hardware startups placing orders and, for that matter, the manufacturing facilities taking them — have the capacity to take on the human rights challenges that seem inevitably to accompany outsourcing.

In other words, the social costs of the hardware revolution deserve some careful consideration.

What’s Really Wrong with Non-Profits?

You may have been fortunate enough to have missed Rush Limbaugh’s angry tirade last week against the non-profit sector and the “lazy idiots” and “rapists” who fill its ranks.

It’s disturbing to think there are people out there – millions of people — who tune into this buffoon on purpose, and share his views and are infected by his hysteria.

What’s even stranger is that — though I am loath to admit it — Rush got me thinking.

Having worked in the non-profit sector (as an educator) and for the non-profit sector (as a consultant) for most of my adult life, I have my own ideas about what’s really wrong with non-profits.

Here is my top-ten list. I won’t pretend that this list of troubles is exhaustive, and I admit up front that these are sweeping statements. My aim is simply to gather my thoughts and, if I’m lucky, start a conversation.

1. Many non-profits are unable to say what they are really about, or confuse their programs with their core mission.

2. Non-profits that begin from small, inspired efforts have a hard time figuring out how big they should grow, how small they should stay, or how to right-size themselves.

3. Many non-profits are founded by a charismatic leader, and remain captive to his or her charisma; but to flourish, the non-profit may require another organizational model.

4. Non-profits don’t do a great job of capturing knowledge, turning knowledge into assets, and sharing knowledge across the organization or with other organizations engaged in the same work; but they should.

5. People come into the non-profit organization inspired and ready to change the world, and become (at best) competent managers.

6. Many non-profits believe managers with corporate skill sets or consultants versed in management theory can create greater organizational efficiencies; but they too often simply don’t get the culture of the non-profit organization.

7. Non-profits lack the entrepreneurial audacity of social entrepreneurs, and tend to be risk averse.

8. For the sake of being inclusive and making sure everybody has a say, non-profits will often forgo the best ideas and the smartest choices.

9. Many non-profit organizations confuse capacity with resources, and resources with funding.

10. Non-profits tend to be captive to their history, because so many non-profits were formed as a solution to a particular problem, or were built in a single great effort, and it’s hard to move beyond that founding moment.

I wonder if my list resonates with the experiences of others. I wonder, too, what’s missing from it, and which non-profit organizations, in your view, really and consistently get it right.