Consultants and Conflicts of Interest: Fast Action
April 7, 2022
My recollection is that a Northwestern graduate named Edwin Booz cooked up big chunks of modern consulting. Was this a year ago? Maybe three years? Nope. Mr. Booz helped Sears become a high-value resource in 1914. Eddie had a master’s in psychology, not business. Think about that. What modern consulting has become began in the climate wonderland of Chicago. You remember. The city with big shoulders.
Flash forward to 2022. “Citing ProPublica’s Reporting on McKinsey, Senators Propose Bill Addressing Contractors’ Conflicts of Interest” stated, after patting itself vigorously on its / thems back:
Yet the consultancy [McKinsey], which is known for maintaining a veil of secrecy around its client list, never disclosed to the FDA that other McKinsey consulting teams were simultaneously working for some of the country’s largest pharmaceutical companies. McKinsey’s commercial clients at the time included companies, such as Purdue Pharma and Johnson & Johnson, that were responsible for manufacturing and distributing the opioids that decimated communities nationwide. In some instances, McKinsey consultants working for drug makers even helped their clients ward off more robust FDA oversight.
McKinsey is one of the heirs to Eddie’s insight that clueless outfits would pay big money for reports written in summary format with lots of bullet points, horizons, and snappy aphorisms. BCG, another blue chip consulting firm, must be credited for taking General Eisenhower’s quadrant diagram and pioneering the era of easy to understand graphics and simple words like “dog” and “star” and “cash cow.”
From pop psychology to snazzy charts, the blue chip consulting business has been roaring along for more than a century. Now the opioid thing combined with the blue chip consulting firm “we’re special” thing may result in meaningful regulation.
Note I wrote “may.” Does anyone believe that government agencies can regulate the firms upon which the very same government agencies depend for advice, guidance, and a reason to have meetings.
Get real.
Here’s the wrap up to the article:
Jessica Tillipman, an assistant dean and government procurement law expert at George Washington University Law School, called the legislation a welcome development. As government contractors have merged in recent decades, the industry has grown more concentrated, increasing the risk of conflicts of interest, and the federal contracting industry, Tillipman said, could use clearer guidance on disclosure requirements tied to the private-sector work of government contractors. “Any attempt to address these growing problems is a good thing,” Tillipman said, “and important to ensuring that we reduce these risks in the government procurement system.”
What? Fix procurement? Let’s see. I estimate that another century will pass before draft regulations emerge from joint meetings between an executive branch agency and Congress. That time estimate may be too optimistic.
Think of the consultants needed to work on the issues related to regulating consultants. Think of the meetings. Think of the revolving door opportunities. Think of the inputs from law firms and accounting firms which must be obtained.
Think of the meetings. Psychology, not business acumen, fuels consulting as it did from the git go. What did that unusual poet say in “Chicago”? This sticks in my mind:
And they tell me you are crooked and I answer: yes…
Proud of it too.
Stephen E Arnold, April 7, 2022
Google: Nosing into US Government Consulting
April 4, 2022
I spotted an item on Reddit called “Google x Palantir.” Let’s assume there’s a smidgen of truth in the post. The factoid is in a comment about Google’s naming Stephen Elliott as its head of artificial intelligence solutions for the Google public sector unit. (What happened to the wizard once involved in this type of work? Oh, well.)
The interesting item for me is that Mr. Elliott will have a particular focus on “leveraging the Palantir Foundry platform.” I thought that outfits like Praetorian Digital (now Lexipol) handled this type of specialist consulting and engineering.
What strikes me as intriguing about this announcement is that Palantir Foundry will work on the Google Cloud. Amazon is likely to be an interested party in this type of Google initiative.
Amazon has sucked up a significant number of product-centric searches. Now the Google wants to get into the “make Palantir work” business.
Plus, Google will have an opportunity to demonstrate its people management expertise, its ability to attract and retain a diverse employee group, and its ability to put some pressure on the Amazon brachial nerve.
How will Microsoft respond?
The forthcoming Netflix mockumentary “Mr. Elliot Goes to Washington” will fill someone’s hunger for a reality thriller.
And what if the Reddit post is off base. Hey, mockumentaries can be winners. Remember “This Is Spinal Tap”?
Stephen E Arnold, April 4, 2022
The Art and Craft of Sending Document Copies to Legal Eagles: The Googley Method
April 1, 2022
Not joke. I read an allegedly accurate write up. It is called “Justice Department Accuses Google of Hiding Business Communications.” The idea is that in the US communications between a lawyer and his/her/them clients are privileged. I am not attorney, but the idea is to allow the lawyer to discuss sensitive issues with the his/her/them paying the bills.
The write up states:
The DOJ writes in its brief that Google teaches employees to request advice from counsel around sensitive business communications, thereby shielding documents from discovery in legal situations. Once counsel is involved, the company can treat the documents as protected under attorney-client privilege.
My view is that Google is just being “Googley.” When people who perceive themselves as entitled and really smart, those his/her/thems get advice from bright, often lesser individuals. The Googlers process the advice and when a suggestion measures up to Googzilla’s standards, the suggestion just sorta maybe becomes a way to handle certain issues.
Those who are Googley understand. Individuals who are not Googley — presumably like those in the Department of Justice — don’t understand the Googliness of the action.
Laws. Rules of the road. Those are often designed for the non Googley. The Googley must tolerate the others. But having the cash to throw legal cannon fodder in the path of the lesser lights who would do the Google harm is a useful tactic.
Stephen E Arnold, April 1, 2022
Do Amazon and Google Shape Information to Advance Their Legislative Agenda?
March 31, 2022
The meeting in which it was decided to fund the Connected Commerce Council must have been fun: High fives, snorts of laughter, and derogatory comments perhaps? CNBC, a most interesting source of real 21st century news, published “How Google and Amazon Bankrolled a Grassroots’ Activist Group of Small Business Owners to Lobby Against Big Tech Oversight.” This is not a high school essay about “How to Make a Taco.” Nope. If true, the write up explains how two companies funded an information management campaign. I would describe this a weaponized propaganda, but I live in rural Kentucky and I am luck if I can remember where I left my bicycle. (Answer: in the garage.)
The write up explains:
The Connected Commerce Council, which pitches itself as a grassroots movement representing small business owners, is actually a well-financed advocacy group funded by tech heavy hitters Google and Amazon.
Interesting.
Here’s the newsy bit:
Lobbying watchdog group the Campaign for Accountability called 3C an “Astroturf” lobbying organization, thanks to the tech giants’ financial support. That’s a bit of Washington slang for a group that claims to represent grassroots entities, but in reality serves as an advocate for big industry. It’s a tactic used in Washington to push for specific legislative or regulatory goals using the sympathetic face of mom and pop organizations. The Campaign for Accountability described 3C in a 2019 report as an “Astroturf-style front group for the nation’s largest technology companies.”
Let’s think about the meeting or meetings which made it possible for two big outfits conclude that weaponizing content was a peachy keen idea. Some questions:
- When will the regulators emulate their European brothers, sisters, and thems and make meaningful steps to deal with cute weaponizing plays like this one?
- Why do executives sign off on such content manipulation — excuse me, I mean public interest messaging? Confidence in their ability to let loose flocks of legal eagles, a “hey, why not” attitude, or a belief in their own infallibility. (CNBC is not exactly Bellingcat, right?)
- Is it a disconnect between ethical behavior and high school science club insouciance?
These are good questions, and I don’t have answers.
The write up includes this remarkable quotation from a Connected Commerce big wheel:
In a statement to CNBC, Connected Commerce Council Executive Director Rob Retzlaff said all of the group’s members “affirmatively sign up – at events, online, or through a personal connection – and thousands have opened emails, responded to surveys, attended meetings and events, and communicated with legislators.” Retzlaff said, “I sincerely hope you do not (a) mischaracterize our efforts or the views of small businesses by suggesting we are an astroturf organization that puts words in people’s mouths, or (b) use outdated membership information to distract readers from legitimate concerns of small businesses and their engagement with policymakers.”
I like the “sincerely hope.”
Read the original. I think the article is a thought starter.
Oh, one more question:
Why didn’t Google just filter search results to add sauce to the Max Miller recreation of Genghis Khan’s fave little meat cakes? Low profile and the perfect explanation: The algorithm makes its own decisions.
Sure, just like the people in the meeting that concluded disinformation and propaganda to preserve the nifty cash machines that make astroturfing useful.
Stephen E Arnold, March 31, 2022
Simple, Fair Digital Markets: Saddle Up, Don Quixote
March 25, 2022
Who knew that I would continue to reference the very long, very weird book I had to read in the seventh grade? Yet here I am: Don Quixote, slayer of windmills, a trusted sidekick, and a study horse.
“Europe Agrees New Law to Curb Big Tech Dominance” explains that the proud animal and adept rider is ambling from the barn after decades of training. Tally ho! The write up says:
Under the Digital Markets Act (DMA), giants such as Google and Apple will be forced to open up their services and platforms to other businesses. Major technology firms have long faced criticism that they use their market dominance to squeeze out competition.
Now that certain US technology outfits are dominant, what’s the fix? I suppose one could dismount and paint the windmills a different color. Where would one locate a color? How about Googling? Alternatively one might consult a Facebook group. And there is the ever objective Amazon, complete with fake reviews and odd ball videos showing a functioning product? Amazing.
Outfitted like the elegant Don, the trusted source of information reports:
The EU wants to give users more choice over how people send messages. The new rules would require that technology make their messaging services interoperable with smaller competitors.
As the rider, cohorts, and snorting animals charge at their targets, will the companies be fungible. Might they prove to be chimera?
At least one of the evil entities is Googzilla? Despite its age, the creature still has teeth, lots of teeth, and lawyers, lots of lawyers.
Stephen E Arnold, March 25, 2022
California: Knee Jerk Reflex Decades After the Knee Cap Whack
March 23, 2022
Talk about reflexes. I read “California Bill Would Let Parents Sue Social Media Companies for Addicting Kids.” [You will have to pay to read the original and wordy write up.] The main idea is that an attentive parent with an ambulance chaser or oodles of cash can sue outfits like the estimable Meta Zuck thing, the China-linked TikTok, or the “we do good” YouTube and other social media entities. (No, I don’t want to get into definitions. I will leave that to the legal eagles.) The write up states:
Assembly Bill 2408, or the Social Media Platform Duty to Children Act, was introduced by Republican Jordan Cunningham of Paso Robles and Democrat Buffy Wicks of Oakland with support from the University of San Diego School of Law Children’s Advocacy Institute. It’s the latest in a string of legislative and political efforts to crack down on social media platforms’ exploitation of their youngest users.
I like the idea that commercial enterprises should not addict child users. I want to point out that the phrasing is ambiguous. I assume the real news outfit means content consumers under a certain age, not the less positive meaning of the phrase.
I think the legislation is a baby step in a helpful direction. But it has taken decades for the toddler to figure out how to find the digital choo choo train. The reflex reaction seems to lag as well. Whack. And years later a foot moves forward.
Stephen E Arnold, March 23, 2022
The Companies That Would Be Countries: Intimidated?
March 15, 2022
I don’t know if this PC Magazine (the super better online version from the print one that once was stuffed with ads) hit a home run with this story or not. Titled “Report: Russia Intimidated Google, Apple into Removing Smart Voting App” makes it clear that having more money that a real-life nation state does not mean that countries are useless.
The write up states:
Russia’s intelligence service, the FSB, reportedly intimidated Google and Apple into removing the Smart Voting app from their platforms because of its affiliation with Alexei Navalny.
The origin of the write up is the “trust us” real news outfit Thomson Reuters. Okay, let’s trust ‘em.
If accurate, companies that want to be countries can generate big bucks, but some countries can intimidate unlike a basic Congressional hearing.
Stephen E Arnold, March 15, 2022
Some Cellebrite Customers Revealed
March 11, 2022
This headline from Apple Insider should not be surprising, but it is bound to shock some individuals: “Most US Cabinet Departments Have Bought Cellebrite iPhone Hacking Tool.” The Intercept reported that fourteen out of the fifteen US Cabinet Departments purchased Cellebrite, technology designed to unlock Apple iOS.
Cellebrite is a common tool law enforcement, government agencies, military personnel and bad actors use to unlock iPhones. It is globally used. All of the major US Cabinet Departments, sans one, are not the only government entities that use Cellebrite:
“The Intercept claims that Federal purchasing records and Cellebrite securities documents seen by the publication, also show that several other federal agencies. Government buyers of Cellebrite include:
- Centers for Disease Control and Prevention
- Department of Agriculture
- Department of Education
- Department of Veterans Affairs
- Housing and Urban Development
- Social Security Administration
- US Agency for International Development
- US Fish and Wildlife Service
In those securities filings, the Cellebrite company reported having over 2,800 government customers in North America.”
Cellebrite has other major clients, including six out of the ten largest oil refiners and six out of then largest pharmaceutical companies. Cellebrite is a tool used by those with money and power. The bigger question is if the so-called “good guys” are using it for good or if they use Cellebrite in the same manner as the bad actors.
Whitney Grace, March 11, 2022
Palantir May Be the New DCGS
March 9, 2022
It is perhaps more important than ever for our military to reliably, efficiently, and securely relay data to the other side of the world. To that end, the army is putting its faith in a firm we have covered often over the last several years. DefenseNews reports, “Palantir Scores $34M Order for Army Data Platform.” Reporter Colin Demarest writes:
“The Army Intelligence Data Platform deal includes software, training, cybersecurity activities and help with testing and initial standup of the capability, the Program Executive Office for Intelligence, Electronic Warfare and Sensors said in an announcement Feb. 22. The award signals the next step for what was once known as the Distributed Common Ground System Capability Drop 2.”
So DCGS is dead, long live AIDP. According to a statement from the Army’s Project Manager Intelligence Systems and Analytics, the platform acts as that branch’s foundation for internal intelligence and its connection to data from the intelligence community. The write-up continues:
“The Army Acquisition Support Center describes the Distributed Common Ground System as a means to buttress a commander’s understanding of threats and his or her environment. It consists of both hardware, like laptops, and software, like data filters and analytics. The Department of Defense in February 2020 named Palantir and BAE Systems as competitors on a $823 million contract to upgrade the Army’s facet of the Distributed Common Ground System. In March 2018, the Defense Department said Palantir and Raytheon would share a $876 million contract for the Distributed Common Ground System-Army Capability Drop 1.”
Perhaps this announcement will boost the intrepid firm’s stock prices. But will this technology work if the cloud goes south or a laptop fails and a replacement cannot access the data? Of course. High tech always performs as long as there are government agencies with hefty budgets.
Cynthia Murrell, March 9, 2022
Facebook: A Source of Reliable Information.
March 7, 2022
I believe everything I read online. Here’s a good example, which I pulled from the money hungry click addict BBC:
Facebook’s president of global affairs, Nick Clegg, said that “soon millions of ordinary Russians will find themselves cut off from reliable information“.
I know I thing of Facebook as providing great content for eight and nine year olds. I know Facebook is capable of dogooderness. I know that Facebook is trying really hard to be as wonderful as possible.
But I don’t think of Facebook as a source of “reliable information.”
This extraordinary characterization of Facebook as a source of “reliable information” appears in the BBC article “Facebook Hits Out at Russia Blocking Its Platforms.” Imagine, a country engaged in a special action which terminates with extreme prejudice young and old having the unmitigated gall to block Zuckbook, er, Facebook.
The write up reports:
The statement says the block on Facebook platforms has been introduced “to prevent violations of the key principles of the free flow of information”.
This is a battle of euphemisms and New Speak. Quite a pair of global powers, Facebook and Russia.
I love that “reliable information” angle. I suppose that is what Dozhd TV channel and Ekho Moskvy radio executives said too.
Stephen E Arnold, March 7, 2022
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