Readers Report
If a Utility Fizzles the Shocks Will Continue
Your commentary "Time to cut this utility's cord?" (The Corporation, July 9) suggests that Southern California Edison should declare bankruptcy to allow a "nonpolitical settlement." If SCE is forced into bankruptcy, the 11 million people it serves will pay a huge price. Electric system reliability and service would likely be jeopardized for years. Key businesses would be reluctant to move into the region, which would harm its economy. The parties can litigate forever, but finally the only way out of bankruptcy would be an agreement which includes California regulators and politicians.
It would be convenient to turn away from working full force to try to resolve this--and instead simply resort to the lawyers. We will have no alternative if a near-term resolution cannot be achieved. But we won't be governed by the naive notion that this crisis will be solved through an antiseptic, apolitical judicial process. After months of negotiations, we have a compromise agreement with Governor Gray Davis that would provide customers with thousands of megawatts of dedicated low-cost power and allow us to use a bond issue to pay off debts. The cost of servicing that bond issue would probably be about one-thirtieth of our current customer rates. We remain committed to doing everything we reasonably can to resolve this now.
John E. Bryson
Chairman, President & CEO
Edison International
Rosemead, Calif.
How Nike Can Regain Its Footing
Nike Inc. should think bigger ("Just do...something," The Corporation, July 2). The potential of the Nike brand is shrinking. The Nike brand persona is based on the values of youth. In an aging population, the influence of youthful values is weaker than it was back in Nike's heyday. In contrast, New Balance Athletic Shoe Inc. has transcended the artificial boundaries of customer segments with its tag line, "Connect with yourself. Achieve new balance." By the time the second half of life gets under way, the continuing evolution of personality draws less from the external world (e.g., Michael Jordan endorsements) and more from the inner self. New Balance knows this and is connecting with a much larger and much wealthier customer group than Nike.
Rick Frazier
Woodbridge, Va.
Nike is the epitome of greed. It is a global company benefiting a few people in Oregon and some rich sports stars.
I have to ask: How many pairs of $100 athletic shoes do you need?
J.R. Gordon
Atlanta
Ford: Going from Average to Exceptional Quality
CEO Jacques Nasser is counting on Six Sigma analysis to improve productivity and decrease error rates at Ford Motor Co. ("Ford: Why it's worse than you think," Cover Story, June 25). Before another Jack (Welch) made Six Sigma a misunderstood household phrase, the renowned education researcher Benjamin Bloom in 1984 defined the Two Sigma problem. He asked: "How do you find ways to enable your people to learn as effectively as if they were tutored?"
Bloom notes that one-to-one instruction has the most power. This is nothing new: That's how Socrates did it. But Bloom quantified Two Sigma as the difference between average and exceptional. Bloom's question is fundamental to organizational success. People need to make Two Sigma gains long before you can demonstrate Six Sigma change in your error rate.
Ford has to ensure that its best people stay, and, more important, share their knowledge with other employees and make Ford stronger. You need look no further than the latest quality statistics: Ford is seventh of seven. Six Sigma improvement is an admirable goal, especially when a Two Sigma improvement would only bring its quality up to the average for the industry.
Brian Reid
Southampton, Bermuda
Running the Pentagon Like a Business?
I applaud Defense Secretary Donald H. Rumsfeld for trying to build an entrepreneurial-based business model for managing the nation's defense ("A hostile takeover of the Pentagon," Washington Outlook, July 2). Bringing in savvy private-sector leaders to try and bring order and accountability to this five-sided money pit is most welcome. But however pure Secretary Rumsfeld's intent may be, I'm afraid his results could get tarnished. How could any CEO succeed in working for 535 bosses (the members of Congress), all with their own personal agendas, who seldom approve anything that is not strictly politically generated? For any sensible and fiscally responsible plan to succeed, the politics must be removed.
Good luck, Mr. Secretary!
John Quilici
Aloha, Ore.
Novartis Does Its Part to Give Patients Access to Drugs
Novartis is the manufacturer of Gleevec (imatinib mesylate), one of the drugs mentioned by John Carey in "Costly drugs: An even bloodier backlash ahead" (News: Analysis & Commentary, May 28). As such, Novartis shares his concern about patient access to certain pharmaceutical products.
Gleevec is a new treatment against the genetic abnormality that causes most cases of chronic myeloid leukemia (CML), a rare--or orphan--blood cancer. Our global clinical trials in CML ultimately included more than 7,500 patients--5,000 of whom were given access solely because of medical need.
Now that the drug is commercially available in the U.S., we have put in place a program to assist patients with reimbursement issues, including assistance for patients who have financial difficulties. Information about the program is available toll-free through our reimbursement hotline (877 453-3832).
From discovery through commercialization, the ability of patients in need to gain access to Gleevec has been key to Novartis.
David Epstein
President
Novartis Oncology
East Hanover, N.J.
Telecoms Can't Afford a Spectrum Auction
The Federal Communications Commission is currently required by law to auction the 700Mhz spectrum for the 3G wireless broadband ("Technology's unholy convergence," News: Analysis & Commentary, July 2). I question if service providers, already dealing with a high level of debt, partly from the 2G auction, are in a position to bid on 3G spectrum. Instead, Congress could pass a law to require the FCC to "award" the 3G spectrum based on criteria such as reach in rural areas and affordability, rather than an auction neither the industry nor the country can afford.
Bowen Ross
Raleigh, N.C.
Ichiro's Bat Speaks for Itself
As a Japanese fan of marquee player Ichiro Suzuki, I read "The Mariners catch a tsunami" (Sports Business, June 25) with much interest. Ichiro's success so far in American baseball has been much more than I expected.
While some argued that Ichiro would have trouble with Major League Baseball pitching, his bat is speaking for itself. It is not too much to say that Ichiro has been galvanizing the Seattle Mariners and their fans. Ichiro's remarkable performance and his team's best start this season have been a marketing bonanza for the Mariners.
This is really the Ichiro effect.
Chiaki Yamazaki
Tokyo
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