CONTACTS 

SUBJECTS
Intel Reduced Earnings
Implode Cannot Buy-off Mistakes Sunshine Profits Innovation Monopoly
Communication Biggest Risk of Mistakes
Bumbling Email Constant Mistakes
Complexity Requires Integrate Objectives, History, Resources, Need SD
Computers Reduce Productivity Management Focus on Analysis Because At
Productivity IT Declined Last 10 Years Info Highway Requires Ergonomi
Productivity Reduced by Information Overload
Too Many People Having Too Many Problems
Imploding Too Many People Having Too Many Problems Management Implodi
People Pay a Price that is Saved Using SDS to Avoid Meaning Drift fro

6413 -
6413 -    ..
6414 - Summary/Objective
6415 -
641501 - Follow up ref SDS D3 0000. ref SDS B0 0000.
641502 -
641503 -
641504 -
641505 -
641506 -
641508 -  ..
6416 -
6417 -
6418 - Background
6419 -
641901 -    1.  On 890809 poor listening causes problems for leaders with good
641902 -        communication skills who get people to say "yes." ref SDS 2
641903 -        CJ9J
641905 -         ..
641906 -    2.  On 920229 technology firm begins to fail because feel good
641907 -        management "cooked the books," ref SDS 5 6632, to avoid
641908 -        accountability for too many problems from feel good management,
641909 -        reviewed on 920229. ref SDS 7 4567
641911 -         ..
641912 -    3.  On 921127 executive frustrated small details later cause major
641913 -        problems, needs proactive management. ref SDS 9 0674
641915 -         ..
641916 -    4.  On 011109 Enron implodes forced into bankruptcy poor management
641917 -        top people "cooked the books." ref SDS D0  006L
641919 -         ..
641920 -    5.  On 920110 engineers "cannot keep head above water" because
641921 -        expediting by taking short cuts on good management, hoping to
641922 -        save time and money by avoiding paperwork, instead caused too
641923 -        many problems. ref SDS 6 8400
641925 -         ..
641926 -    6.  On 950204 Com Metrics for proactive management is "overkill."
641927 -        ref SDS 19 5932
641929 -         ..
641930 -    7.  On 960103 executives don't have time to understand content, so
641931 -        decisions are based on style. ref SDS 27 8409
641933 -         ..
641934 -    8.  On 970222 Larry Ellison, CEO of Oracle, reported that people
641935 -        and enterprise need a more productive use for personal
641936 -        computers. ref SDS 45 3967
641938 -         ..
641939 -    9.  On 970910 executives do not have time to think, because
641940 -        information overload from handling too many problems makes
641941 -        management a comedy of errors, i.e., continual bumbling,
641942 -        instead of continual learning. ref SDS 63 3479
641944 -         ..
641945 -   10.  On 970916 information overload causes continual problems, but
641946 -        nobody has a solution. ref SDS 64 0001
641948 -         ..
641949 -   11.  On 970919 investment in IT has caused productivity to decline.
641950 -        ref SDS 65 4739
641952 -         ..
641953 -   12.  On 990527 powerful cultural forces resist intelligence support;
641954 -        when people are busy attending meetings, making calls, and
641955 -        handling documents, there is no demand to improve the work;
641956 -        ignorance, fear, and denial make good management seem like
641957 -        unnecessary overkill. ref SDS 88 1233
641959 -         ..
641960 -   13.  On 990625 Fortune article says successful executives "...grab a
641961 -        pen and start writing..." to understand what happens at
641962 -        meetings, ref SDS 89 1024; but "psyche" prevents most
641963 -        executives from using good management, because they don't feel
641964 -        like "wasting time writing everything down," since talking
641965 -        seems faster and easier. ref SDS 89 4914]
641967 -         ..
641968 -   14.  On 990912 the high cost of medical mistakes caused by poor
641969 -        communication, ref SDS 91 0960, and fear of accountability that
641970 -        impacts competence, foster a culture of denial. ref SDS 91 3416
641971 -        see, also, analysis showing communication problems escalate
641972 -        into a crisis of continual bumbling. ref DIP 1 0001, on 990924.
641973 -        ref SDS 92 5576
641975 -         ..
641976 -   15.  On 000324 SRI reported that projects trying to create knowledge
641977 -        management have failed. ref SDS 94 4877
641979 -         ..
641980 -   16.  On 000504 Jack Park reported to OHS/DKR team at SRI that SDS
641981 -        makes Knowledge Management an effective practice for improving
641982 -        daily work. ref SDS 95 XD5M
641984 -         ..
641985 -   17.  On 001004 Eric Armstrong's letter cited huge needs for Doug
641986 -        Englebart's vision to develop technology, at that time calling
641987 -        for OHS/DKR, but impending needs do not create incentive for
641988 -        tools and practices that support good management, because
641989 -        concern about future problems is never high enough to overcome
641990 -        fear of accountability, which is the essence of good
641991 -        management. ref SDS A1 0001
641993 -         ..
641994 -   18.  On 001013 time is running out on IT; need transition to culture
641995 -        of knowledge, ref SDS A3 Z5W8, presents KM dilemma:  not enough
641996 -        time to save time and money. ref SDS A3 UA3G
641998 -         ..
641999 -   19.  On 001017 executives charged with investing resources to
642000 -        improve earnings, don't have time to understand SDS works
642001 -        better than other methods. ref SDS A4 SH6O
642003 -         ..
642004 -   20.  On 001101 projects fail when management fails to use good
642005 -        management practices, because overwhelming desire to use bad
642006 -        management; examples Linux, Netscape creating version 5 called
642007 -        Mizolla. ref SDS A5  MX6H
642009 -         ..
642010 -   21.  On 001207 report on economy showed widespread fear about losing
642011 -        jobs and not paying the mortguage, which for some comprises
642012 -        enabling forces sufficient to overcome overtake fear of
642013 -        accountability. ref SDS B0 MZ7G  Submitted ref DIP 3 0001
642014 -        linked to this record to provide analysis showing growing
642015 -        demand for knowledge capabilities may arise from need for
642016 -        increased competence to handle a complex environment.
642017 -        ref SDS B0 0001
642019 -         ..
642020 -   22.  On 001207 two separate articles by Reuters reported the economy
642021 -        is slowing, because productivity and earnings are declining,
642022 -        causing stock prices to fall precipitously. ref OF 8 0001  This
642023 -        impacts a lot of people, which is an enabling factor in forming
642024 -        a new market. ref OF 9 0001
642025 -
642026 -            "There is a ripple effect, said one analyst.  Just too many
642027 -            people having too many problems." ref SDS B0 V54M
642029 -         ..
642030 -        Information overload devestates productivity, and requires
642031 -        proactive management enabled by SDS to save time and money, as
642032 -        explained in POIMS. ref OF 4 OF6N
642034 -         ..
642035 -   23.  On 001219 SDS new way of working improves productivity,
642036 -        earnings and stock prices. ref SDS B1  QT6F
642038 -         ..
642039 -   24.  On 010223 Intel worries there is no "killer application" for
642040 -        computers; nobody knows what cusomters want; telecom wireless
642041 -        industry going bankrupt, need to give customers something that
642042 -        improves productivity. ref SDS B5  FM6J
642044 -         ..
642045 -   25.  On 010403 Curt Carlson, CEO at SRI, does not have enough time
642046 -        to consider SDS opportunity for improving competence that
642047 -        reduces problems, improves productivity. ref SDS B8  0001
642049 -         ..
642050 -   26.  On 010425 SDS intelligence support for "connecting the dots" is
642051 -        a utopia compared to using other tools. ref SDS B9 EP7F
642053 -         ..
642054 -   27.  On 010622 alphabet technology makes people superhuman, "killer
642055 -        app" of the ages. ref SDS C0  N668
642057 -         ..
642058 -   28.  On 010703 PC industry seeking compelling application.
642059 -        ref SDS C1 GM4N
642061 -         ..
642062 -   29.  On 010705 lower earnings continue to cause stocks to decline,
642063 -        increasing demand for better productivity and earnings.
642064 -        ref SDS C2  0001
642066 -         ..
642067 -   30.  On 010727 mergers acquisitions failing, $50B loss. ref SDS C3
642068 -        0001
642070 -         ..
642071 -   31.  On 010819 problems with world economy more serious and
642072 -        long-lasting than expected. ref SDS C4 0001
642074 -         ..
642075 -   32.  On 010911 gaps in intelligence weaken national security exposed
642076 -        when four (4) planes were hijacked by terrorists, many of whom
642077 -        were known to US authorities, but the plot escaped detection
642078 -        because not enough time is invested for analysis to understand
642079 -        correlations, implications and nuance from information
642080 -        collected by surveillance technology. ref SDS C5 UP5K  US soil
642081 -        suffered the most devastating attack by foreign powers in over
642082 -        200 years, with loss of over 3,000 lives, destruction of the
642083 -        World Trade Center in New York, and damage to the Pentagon,
642084 -        estimated to cost over $100B to repair, plus disruption of
642085 -        American life and the economy.  Some authorities call for
642086 -        increased intelligence capability. ref SDS C5 H452
642088 -         ..
642089 -   33.  On 010911 executives feel ad hoc "problem handling" using good
642090 -        communication skills solves information overload, instead of
642091 -        investing intellectual capital, called out in POIMS,
642092 -        ref OF 4 1101   The feeling information overload is caused by
642093 -        not working hard enough, reported on 980808, ref SDS 83 4140,
642094 -        reflects denial that when.....
642096 -                       ..
642097 -                      too many people are having too many problems
642098 -
642099 -        ...complexity overwhelms competence, which Doug Engelbart wants to
642100 -        solve, as reported in the citation for his award of the "National
642101 -        Medal for Technology," reported on 001114. ref SDS A6  SU3L  On 001204
642102 -        Doug planned a presentation to NSF on the challenge of competency in
642103 -        the face of expanding complexity. ref SDS A7  QR6K
642105 -         ..
642106 -   34.  On 010916 SDS enables amazing memory, methods obviously work,
642107 -        but worry about user interface is polishing brass as Titanci
642108 -        sinks. ref SDS C6  P64L
642110 -         ..
642111 -   35.  On 011003 IT using popular programs everyone loves to use
642112 -        causes hopeless quagmire information overload, causing
642113 -        complexity that paralizes analysis. ref SDS C7  EC5N
642115 -         ..
642116 -   36.  On 011031 economy suffers steepest decline since 1991,
642117 -        following terrorist attacks on 010911. ref SDS C8 0001
642119 -         ..
642120 -   37.  On 011102 job losses biggest in 2 decades. ref SDS C9 0001
642122 -         ..
642123 -   38.  On 020116 connecting dots shows economy imploding, needs
642124 -        intelligence. ref SDS D1 0001
642126 -         ..
642127 -   39.  On 020204 Enron's collapse into bankruptcy reflects problems in
642128 -        economy of failing to use good management. ref SDS D2 0001
642130 -         ..
642131 -   40.  On 090320 another world economic downturn caused by bad
642132 -        management in investment banking making bad loans and selling
642133 -        them to other banks in large bundles of derivitive transactions
642134 -        which the buyers could not and did not investigate for credit
642135 -        risk, because the buyers sold them to others in a continuing
642136 -        Ponzi scheme. ref SDS D3 V54M
642138 -         ..
642139 -   41.  On 090320 housing market was a major part of bad management
642140 -        enabling the Ponzi pyramid selling derivitives to spiral out of
642141 -        control in investment banking. ref SDS D3 SA4M
642143 -         ..
642144 -   42.  On 090320 Madoff Investments was discovered through effects of
642145 -        economic downturn as a colossal fraud causing $50B in losses to
642146 -        his investors in a classic Ponzi scheme. ref SDS D3 I560  The
642147 -        Madoff failure in investment banking reveals sophisticated,
642148 -        successful people make huge investments without investing time
642149 -        and money to investigate the soundness of transactions.
642150 -        ref SDS D3 4U8Q
642152 -         ..
642153 -   43.  On 090320 Warren Buffett was cited as the modern-day icon of
642154 -        prudent investing whose clients did not suffer losses because
642155 -        Buffett did not invest in high risk derivitive transactions.
642156 -        ref SDS D3 IR39
642157 -
642158 -
642159 -
6422 -

SUBJECTS
Default Null Subject Account for Blank Record

6503 -
650401 -  ..
650402 - Enabling Forces Foster Perspective for Change, Improvement
650403 - Too Many People Having Too Many Problems Needs Culture of Knowledge
650404 -
650405 - Follow up ref SDS D3 V54M, ref SDS B0 V54M.
650406 -
650407 - On 090320 Warren Buffett and his firm Berkshire Hatheway was
650408 - considered unscathed by worldwide meltdown occurring in financial
650409 - markets, largely due losses from over-leveraged high risk derivitive
650410 - transactions. ref SDS D3 IR39
650412 -  ..
650413 - Today, Reuters reports Buffett's firm incurred losses in derivitives,
650414 - ref SDS 0 0Z4X, though Buffett distinguishes his use of derivitives
650415 - that resulted in relatively less severed losses, from higher risk
650416 - transactions indulged by the wider investment banking industry.
650417 - ref SDS 0 0Z5Y
650418 -
650419 -    Reuters
650421 -     ..
650422 -    May 2, 2009
650424 -     ..
650425 -    Buffett sees some losses at somber Berkshire fest
650427 -     ..
650428 -    By Jonathan Stempel and Lilla Zuill Jonathan Stempel
650429 -    And Lilla Zuill
650431 -         ..
650432 -    1.  OMAHA, Nebraska (Reuters) - Warren Buffett acknowledged on
650433 -        Saturday that his Berkshire Hathaway Inc will probably lose
650434 -        money on some of the derivatives contracts that have prompted
650435 -        some to speculate that the world's most famous investor has
650436 -        lost his touch.
650438 -         ..
650439 -    2.  At Berkshire's annual shareholder meeting, Buffett offered a
650440 -        gloomy forecast for parts of the U.S. economy and Berkshire
650441 -        itself, though he said massive federal efforts to stimulate
650442 -        activity could pay off at a possible cost of higher inflation.
650444 -         ..
650445 -    3.  "It has been a very extraordinary year," Buffett said. "When
650446 -        the American public pulls back the way they have, the
650447 -        government does need to step in....  It is the right thing to
650448 -        do, but it won't be a free ride."
650450 -         ..
650451 -    4.  The meeting attracted a record 35,000 people to the Qwest
650452 -        Center in downtown Omaha to see the world's second-richest
650453 -        person, often considered the world's greatest investor.
650455 -         ..
650456 -    5.  But it had a decidedly more serious and somber tone from years
650457 -        past as many investors expressed worries about the economy,
650458 -        Berkshire's investments, and how long the 78-year-old Buffett
650459 -        plans to stay on the job.
650461 -         ..
650462 -    6.  Half the questions were pre-screened by journalists, providing
650463 -        a tougher and more substantive dialogue with Buffett and his
650464 -        85-year-old vice chairman, Charlie Munger.
650466 -         ..
650467 -    7.  Buffett said housing prices have yet to stabilize broadly, that
650468 -        retailers may be under pressure for a "considerable period of
650469 -        time," and that he would not buy most U.S. newspaper companies
650470 -        "at any price."
650472 -         ..
650473 -    8.  He also said that in insurance, which comprises about half of
650474 -        Berkshire's operations, the earnings power "was not as good
650475 -        last year as normal" and "won't be as good this year."
650477 -         ..
650478 -    9.  Buffett also said the four candidates to replace him as
650479 -        Berkshire's chief investment officer failed to outperform the
650480 -        Standard & Poor's 500 last year, but remained confident they
650481 -        could perform well over time.  Berkshire still has three
650482 -        internal candidates to replace Buffett as chief executive.
650484 -         ..
650485 -   10.  DERIVATIVES
650487 -         ..
650488 -        Berkshire's stock has fallen 39 percent since December 2007,
650489 -        and profit last year fell 62 percent from a year earlier.
650490 -        Buffett said he would not buy back Berkshire stock now, because
650491 -        its share price is not "demonstrably below" the company's
650492 -        intrinsic value.
650494 -         ..
650495 -   11.  Buffett had transformed Berkshire since 1965 from a failing
650496 -        textile maker into a conglomerate with close to 80 businesses
650497 -        that sell such things as Geico car insurance, paint, ice cream,
650498 -        and underwear.  It also has tens of billions of dollars of
650499 -        investments.
650501 -         ..
650502 -   12.  Much of the worry about Berkshire has focused on Buffett's use
650503 -        of derivatives in making long-term bets on the direction of
650504 -        stocks and junk bonds, and which have so far resulted in
650505 -        billions of dollars of paper losses.
650507 -         ..
650508 -   13.  While Buffett still expects the contracts tied to equity stock
650509 -        indexes to make money, he said "we have run into far more
650510 -        bankruptcies in the last year than is normal." He said he now
650511 -        expects the contracts tied to credit defaults will show a loss
650512 -        before investment income, and perhaps after as well.
650514 -         ..
650515 -   14.  Buffett still distinguishes his derivatives from others such as
650516 -        credit default swaps, given that he collects billions of
650517 -        dollars of premiums upfront to invest and posts little
650518 -        collateral.  He called other derivatives "a danger to the
650519 -        system. There is no question about that."
650521 -         ..
650522 -   15.  The more serious mood extended to the traditional movie made by
650523 -        Buffett's daughter Susie, which dispensed with its usual
650524 -        humorous cartoon, though it showed Buffett attempting to teach
650525 -        Tiger Woods how to improve his golf game.
650527 -         ..
650528 -   16.  Berkshire's off year did not dissuade hundreds of shareholders
650529 -        from lining up outside ahead of the arena's 7 a.m. opening.
650531 -         ..
650532 -   17.  "We'd rather be at the front of the line," said Linda Moore, a
650533 -        Brookfield, Michigan resident who said she lined up at 2:50
650534 -        a.m. "It's the best weekend of the year: informative, exciting,
650535 -        energetic."
650537 -         ..
650538 -   18.  CONFIDENCE IN BANKS
650540 -         ..
650541 -   19.  Buffett expressed confidence in Wells Fargo & Co, one of
650542 -        Berkshire's biggest investments, saying it has "by far the best
650543 -        competitive position" of any large U.S. bank.
650545 -         ..
650546 -   20.  He also said some banks will weather the credit crisis well,
650547 -        saying that if he wanted to turn Berkshire into a bank holding
650548 -        company, "I would love to buy all of US Bancorp, or I would
650549 -        love to buy all of Wells."
650551 -         ..
650552 -   21.  He also defended Berkshire's roughly 20 percent stake in
650553 -        Moody's Corp, a credit rating agency faulted for failing to
650554 -        predict the housing crisis and assigning high ratings to risky
650555 -        debt for too long.
650557 -         ..
650558 -   22.  "They made a huge mistake" but were not alone, Buffett said.
650559 -        "The rating agency business is probably still a good business,
650560 -        (but) it won't be doing the volume probably for a long time in
650561 -        certain areas of the capital markets."
650563 -         ..
650564 -   23.  Buffett declined to name the candidates to replace him as chief
650565 -        executive officer and chief investment officer, but said Ajit
650566 -        Jain, who runs much of his insurance businesses and whom
650567 -        investors believe is a CEO contender, is irreplaceable.
650569 -         ..
650570 -   24.  "It would be impossible to replace Ajit," he said. "We wouldn't
650571 -        give the latitude to size or risk that we would give to
650572 -        Ajit....  We won't find a substitute for him."
650574 -         ..
650575 -   25.  Buffett said that for any CEO candidate, "the biggest job they
650576 -        have will be to develop relationships with potential sellers of
650577 -        businesses."
650579 -         ..
650580 -   26.  But he added that while Berkshire is much less nimble than it
650581 -        was when it was smaller, "our sustainable competitive advantage
650582 -        is we have a culture and business model that people would find
650583 -        very, very difficult to copy."
650584 -
650586 -  ..
650587 - Bad Management Practice Opens Competitive Advantage for Good Management
650588 -
650589 -
650590 -   27.  Munger added: "The stupidity in the management practices of the
650591 -        rest of the corporate world will likely be ample enough to give
650592 -        this company some comparative advantage in the future."
650593 -
650594 -
650595 -
650596 -
650597 -
650598 -
650599 -
650600 -
650601 -
650602 -
6507 -