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20th
September

Facts, Theories, & Concepts

Research

Propositions are statements concerned with the relationships among concepts. They explain the logical linkage between specific concepts by asserting a global connection between concepts, whereas hypotheses are an unproven or untested proposition that explains certain facts or phenomena: essentially a proposition that is empirically testable. To put it more simply, a proposition is no more than a proposal or suggestion offered up for additional research or discourse whereas a hypothesis is an untested or unproven theory, thus leaving only the slightest of differences between the two concepts.

Concepts are nothing more than observations categorized in a way we see fit. A concept or construct is a generalized idea about a group of objects, attributes, occurrences, or processes that have been given a name or designation. Variables, for lack of a better word, are concepts that can be measured. In the ladder of abstraction, moving up the ladder, basic concepts become increasingly more abstract and less able to be measured. Moving down the ladder we approach what researchers refer to as the empirical level or reality where variables exist and can be measured.

A good theory should be so commonsensical that it be used to solve everyday or relevant issues. Abstract theories are impractical and contrary to the world of physical discovery. This is not to say that there is not a place for abstract theories, but a “good” theory is one that is not conceptual or speculative, rather one that is tangible. A theory based on practicality can be easily measured and thus is applicable to the lowest ladder of abreaction, which is reality.

The 17th-century Dutch philosopher Benedict Spinoza said, “If the facts conflict with a theory, either the theory must be changed or the facts.” The practical meaning of this statement can be simply put as, Facts are facts. Meaning, facts are reliable, sound, and consistent whereas theories are observations based on previous events or occurrences. Theories are open ended, able to change, and flexible, but facts are constrained and solid. For instance, a simple fact is the sun comes up every morning and sets every night. While some day the sun will cease to rise and cease to set, the overlying decree is considered fact. However, theories can easily be manipulated and changed, and therefore the theory is what needs to be changed, and not the fact. It is much easier to change a theory about the sun than it is the fact that it rises and sets each day.

Theories are a coherent set of general propositions, used as principles of explanation of the apparent relationships of certain observed phenomena. According to AskOxford, a theory is a supposition or a system of ideas intended to explain something, especially one based on general principles independent of the thing to be explained. They are similar in the fact that both definitions reference a system or set of ideas to explain a particular observation. In essence, both are looking to find reason. The utilization of the words propositions, relationships, and phenomena are all key components to the scientific method.

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13th
September

The Network Effect: Marketing Implications

Business, Entrepreneurship, Marketing

Network effect is the phenomenon whereby a service or product becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters. A good example of this would be Microsoft’s Office product that shows how useful it is to use the same product used by many other people. The returns achieved through increasing market shares do not diminish over time, but grow in a reversal of the “law” of diminishing returns.
The way the network effect works is quite simple, one may adopt a service or product because someone they know may use or recommend it; later, one may adopt the service or product because everyone uses it. Just as one is encouraged to network to land that sought-after job, the more exposure to key people, the higher the chances of landing the job.
Many small companies rely heavily on the network effect as a key marketing tool. Case in point, Alienware computers; initially, Alienware computers were designed and sold specifically to the gaming community with little to no marketing outside word-of-mouth advertising. This created a boutique style computer that many devote gamers swore by, thus piquing the interest of high-end computer power-users.
Over a relatively short period of time, Alienware computers increased the client base considerably from utilizing the network effect. This style of marketing had such a profound impact, that Dell Computer, Inc. saw potential, purchased Alienware and began manufacturing, distributing, and marketing their computers under the Alienware brand.
Never underestimate the power of the network effect; especially, if you run a small business.

Network effect is the phenomenon whereby a service or product becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters. A good example of this would be Microsoft’s Office product that shows how useful it is to use the same product used by many other people. The returns achieved through increasing market shares do not diminish over time, but grow in a reversal of the “law” of diminishing returns.

The way the network effect works is quite simple, one may adopt a service or product because someone they know may use or recommend it; later, one may adopt the service or product because everyone uses it. Just as one is encouraged to network to land that sought-after job, the more exposure to key people, the higher the chances of landing the job.

Many small companies rely heavily on the network effect as a key marketing tool. Case in point, Alienware computers; initially, Alienware computers were designed and sold specifically to the gaming community with little to no marketing outside word-of-mouth advertising. This created a boutique style computer that many devote gamers swore by, thus piquing the interest of high-end computer power-users.

Over a relatively short period of time, Alienware computers increased the client base considerably from utilizing the network effect. This style of marketing had such a profound impact, that Dell Computer, Inc. saw potential, purchased Alienware and began manufacturing, distributing, and marketing their computers under the Alienware brand.

Never underestimate the power of the network effect; especially, if you run a small business.

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12th
September

Case Study: MySQL/DB2

Automation, Business, Health Care, Technology

We were recently mentioned in a case study by Hit Software. Below is the excerpt from the case study referencing Vertigo Group. The complete white paper may be accessed here: Whitepaper HIT Software MySQL DB2.

Oregon Health Systems (OHS), a leading managed care organization, has a provider network of approximately 1500 physicians. OHS’ sophisticated medical management system serves thousands of workers in its region for workers compensation plans and care.

OHS, as an independent managed care organization (MCO) of physician and clinical treatment for occupational injuries and illness, is responsible for managing the patient history from enrollment through resolution, identifying key events and communicating on a regular basis with physicians and claims adjusters. First certified in limited areas in 1991, OHS now offers services to workers throughout the entire state of Oregon. It is the only MCO certified for the entire state. OHS also offers managed care services in Montana as Montana Health Systems, and other case management and cost containment services in several other western states.

MCOs are utilized by workers’ compensation insurers and self-insured employers to provide injured workers appropriate, cost-effective medical treatment and disability management, and to ensure the claims process and medical care are moving forward. Oregon Health Systems requires the ability to integrate patient, insurance, treatment and disability information in their process of overseeing worker care.

According to Ryan Hopman, Systems Integrator and Consultant, Vertigo Group LLC(3), “OHS faced a common situation where they had to integrate data from various formats and databases. As a management service, they have to be able to see data holistically in order to determine optimized treatment and physician recommendations, as well as track the patient history.” OHS’ critical requirement was to be able to use IBM DB2 data in their provider management system, and key considerations were time-to-value and a streamlined and efficient IT system. “Using HiT Software’s DBMoto data replication capabilities, we were able to quickly and easily integrate data from MySQL, IBM and other systems in our solution for OHS, as well as reduce development time,” added Hopman. “OHS now has a reliable solution that can scale to fit their growth and expansion plans.”

(3) Vertigo Group is a business management and technology consulting firm located in Portland, Oregon. The company specializes in low-risk, high-return consulting with customized solutions. Vertigo Group solutions are based on extensive industry expertise, broad and evolving service offerings, expertise in business transformation outsourcing, a history of technology innovation and implementation including research and development, and a proven and experienced management team. Vertigo Group is committed to long-term relationships with its clients. www.vertigogroup.com

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10th
September

How to Make a Safer Workplace

Business, Presentations, Research

Safety Program

Safety Program Management

Impact on Business

We have all heard the expression, “you have to spend money to make money.” That statement not only applies to marketing schemes, but also to safety programs. The general public discourse regarding company safety is unfortunately, an unfavorable one. Reason being, most people feel that companies are looking out for the organizations best interests (e.g. money) and not the best interests of the employee. This outlook stems from the late 19th and early 20th centuries in America, better known as the Industrial Revolution. It is because of the atrocities committed during the Industrial Revolution that many feel companies are corrupt and greedy, but logic dictates otherwise. One could deduce that just as our Government is made up of the people, a company shares a similar design. Without the employees, there is no company, with this rationale, one could construe that it is in the best interest of the employer to keep the employee safe, healthy and ultimately satisfied.

How Business is conducted

Safety should be the foremost concern in terms of operational standards of a company. Unfortunately, the safety officer is always under scrutiny and having to justify the cost of his or her presence. This concept while poor is the leading operational mentality. The fact remains that if a company wants to remain successful not only for the short term, but more importantly the long term, it has to start with safety. A safe and healthy work environment gains the respect and trust of its employees and customers. An employee who feels that the company is looking after their well being is more productive in the work environment; more efficient in work related procedures, and more willing to go that extra mile if the company so desires. A happy employee is good for business, for without that employee, there would be no business.

Safety Program Details

The following safety program is an outline that any company can follow to set up an effective, efficient and safe working environment. This is by no means all-inclusive and it’s certainly not a fill in the blanks form. The purpose is to cover the basic needs and requirements a safety program dictates. While it is important to have a solid and firm foundation of safety, it is an impossibility to effectively create a one size fits all safety program. To ensure the most reliable and efficient safety program, one needs months of research including; cost analysis, hazard analysis, feasibility research, and the like.

Company Policy

To implement, one must publish a safety program that is easily and readily available to all. It should also be written in a clear and concise manner allowing all too easily understand its principles. Moreover, making it clear that safe work practices are expected of all employees at all levels in the company.

The safety manager must make three requirements; (1) the company and its top managers are committed to safety and health (2) employees are expected to perform their duties in a safe and healthy manner and (3) the company’s commitment extends beyond the walls of its plant to include customers and the community.

Promoting Safety

The most effective way to promote safety is by example: managers must not only enforce safety, but show their commitment by example. To procure the backing and respect from employees, the managers must show that they are complying with the same rules as everyone else. It is critical that managers follow the company safety policy in both letter and spirit. Managers who set a poor example undermine all the company’s efforts to promote safety, thus mitigating any progress to a safer work environment. This is especially important when employees are under the gun for a deadline. Often times, managers encourage employees to bend the rules and sometimes break them to meet deadlines. This type of behavior conveys a negative safety image and negates any authority the safety manager may have.

Rules and Regulations

A company’s safety policy is translated into everyday action and behavior by rules and regulations. Rules define what is acceptable and unacceptable from a safety and health perspective. Legally, the employers must have rules that ensure a safe and healthy workplace and that all employees are knowledgeable about the rules. Furthermore, they must ensure that safety rules are enforced objectively and consistently. Similar to the Federal Aviation Regulations (FAR) that dictate the minimums at which licensed pilots must follow; one must remember these are only the minimums. To ensure the safest environment, employers must not only meet these regulations, but also exceed them. This is known as the distinction between regulatory compliance and compliance. Objectivity and consistency are critical when enforcing rules and regulations. One must enter the situation with an open mind free from preconceived notions and remain consistent in decisions and actions.

Employee Participation

Involving employees in safety program management is critical to the success of the safety program. First, examples need to be set by managers. There is nothing more detrimental than a manager who undermines the safety program. Managers need to be aware that they also are being watched, and their actions will be followed. Second, establishing a trust between manager and employee is a must. If an employee feels that they will be disciplined for any error, they will simply not report errors.

The manager needs to be fair and remove all judgment, keeping conversations confidential by creating an open forum and allowing everyone to speak candidly without the repercussions of disciplinary action. This will validate ones creditability as a trustworthy and respectful manager. Thirdly, managers must create incentive programs, such as giving awards and recognizing responsible employees in a public forum. By rewarding employees as an alternative to chastising them, one creates a positive atmosphere where employees are more willing to report safety concerns and mistakes. Keeping ones door open and available for all suggestions is an important aspect to any safety program. An effective safety program is always changing; it grows as the company grows. Allowing employees to express their feelings and concerns are fundamental to creating an effective and successful safety program.

Safety Training

A safety plan in place without the proper training is like giving a private pilot a Fighter Jet and saying “let’s go.” Statistics show that the human brain can only process so much information at a given time. Moreover, one loses 70% of the information ascertained two hours after the instructional period. With this in mind, an employer needs to not only hold safety seminars and training on a yearly or bi-yearly basis, but also post safety information such as flyers, memos, and website in a public place. The Occupational Safety and Health Administration has a wealth of information on workplace training. Their website can be found at (http://www.ohsa.gov).

Suggestion Programs

Suggestions are the best method to evaluate the current construct of a safety program. It also allows ones program to grow in the best way possible with making your employees feel empowered and secure. This can be done by creating a website for employees to post anonymous suggestions, creating a form that employees can place in a locked drop-box or establish an open forum every week where employees can express their concerns.

Visual Awareness

Look at the effectiveness of billboards in the workplace. It is this principle that makes flyers and signs so effective. Posting visual aids for reminders, dangers, cautions etc., help ensures that even the more forgetful employee still remembers to wear a hardhat, thus making employees cognizant of safety. There are several rules of thumb that can help ensure the effectiveness of visual safety aids. For example, the manager may change signs, posters and other visual aids periodically or involve the employee in developing the messages that are displayed on signs and posters. It is imperative to keep the message simple and brief and that all visual aids are large enough to be seen easily from a reasonable distance. To increase the usefulness of visual aids, the manager should place safety information in high-traffic areas for maximum effect.

Safety Committees

Establishing a safety committee is another way of promoting safety. Safety committees provide a formal structure through which employees and management can funnel concerns and suggestions about safety and health issues. To hold a successful meeting, it is important to have a broad spectrum of departments and divisions represented. Safety Committees work only if members are truly empowered to identify hazards and eliminate them. Safety committees should convene quarterly and cover all aspects of safety from each department. A typical safety committee meeting begins with a call to order followed by recording the attendance of all involved. The safety committee then reviews the minutes of previous meetings and discusses any old business followed by new business; this includes, any accidents/incidents, near misses and/or safety concerns. The safety committee then reports on inspections, subcommittee work, special assignments and safety program enhancements. Committee members are encouraged to make special presentations (guests, videos, and/or demonstrations) and any announcements pertinent to safety.

Personal Commitment

If all employees were committed to working safely every day, workplace safety would take care of itself, but gaining this type of personal commitment is hard to achieve. So how does an employer get this type of resolve from their employees? One way is to have an employee sign on the dotted line. Companies gain the following three advantages from having employees sign on the dotted line as part of their program to promote safety; (1) employees take a personal commitment, (2) employees promise to interact positively with fellow workers when they see them ignoring safety precautions and (3) it allows employees to correct unsafe coworkers that ignore safety precautions.

Incentives

If properly used, incentives can help promote safety. However, the proper use of incentive programs is a widely misunderstood concept. To promote safety effectively, incentives must be properly structured. I recommend the following strategies for enhancing the effectiveness of incentive programs:

• Define Objectives, by deciding what is supposed to be accomplished by the program.

• Develop specific criteria. On what basis will the incentives be awarded?

• Make rewards meaningful. For an incentive program to be effective, the rewards must be significant to the recipients.

• Recognize that only employees who will participate in an incentive program know what incentives will motivate them.

• Keep communications clear. It is important for employees to understand the incentive program and all its aspects.

• Reward teams. Rewarding teams can be more effective than rewarding individuals.

The Team Approach

Teamwork is stressed more than ever as the best way to get work done in the contemporary workplace. Teamwork is a fundamental component of the Total Safety Management (TSM) approach. Effective teams share several common characteristics: supportive environment, team player skills, role clarity, clear direction, team-oriented rewards, and accountability.

The characteristics of a team-supportive environment are well known and can be defined by:

• Open communication

• Constructive, non-hostile interaction

• Mutually supportive approach to work

• Positive, respectful climate

Teamwork can have both direct and indirect benefits for an organization. Through teamwork, counterproductive internal competition and internal politics are replaced by collaboration. When this happens, employees generally have a better understanding of safety rules and regulations and a more positive attitude to safety.

Where do we go from here?

Creating a safety program is a must to ensure the successful operation of a company. Keeping employees safe, healthy, happy and inspired all contribute to the outcome of the bottom line. Many companies now realize that by funding an experienced safety team to eliminate hazards before they occur have not only moral benefits, but monetary as well.

Managers are the key to the success of a safety program. In order to get employees to commit to a safety plan, managers must lead the way. It doesn’t matter whether the Chief Executive Officer or Chief Safety Officer back a particular program, because they are not in the trenches so to speak. Each line manager in each department, must, wholeheartedly support the safety program in place by setting examples. They must not undermine the program by allowing safety to slide in the event of a time crunch, or managing by the “do as I say, not as I do” routine. Moreover, every employee is responsible for safety and common sense. You must make it clear to each employee that they are in a sense, a safety manager. It is their responsibility to not only supervise their own actions, but the actions of other employees.

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