Caroline Kininmonth runs a restaurant in Australia that doesn't serve food. The place is BYOF and donations are accepted in a box next to the front door. (thx, john)
Dave Pell's advice for Yahoo!: Do What You're Great At.
Yahoo is grown up. They know what they're great at. They are great at news. When it comes to news, they absolutely crush Google. So here's a whacky idea my Yahoo friends. Why not define yourself by your news services and the other stuff where you destroy the competition?
After yesterday's iPhone 3G revelry, the inevitable hangover. AT&T is done playing nice with iPhone customers. First off, the data plan for 3G is $10 more than the old plan. Second, in-store activation is required, "which takes 10-12 minutes"...with the old version of the iPhone, you could activate through iTunes and it took 2 minutes. (That means no online ordering of phones either.) Third, Apple and AT&T may be working on a purchase penalty for those who don't activate their phones within 30 days...so no more buying a phone to use on another network. Four: no prepaid plans. Yay?
Every year or so, the same question is asked: how is the Moneyball strategy working out for the Oakland A's. This year's answer is: pretty damn good.
Additions like [Frank] Thomas, motivated by this incremental approach, help explain why the A's have won so many games in recent years even though they've consistently traded away or declined to re-sign their top players (Jason Giambi, Miguel Tejada, Tim Hudson, etc.), who demand top dollar--and largely on the basis of past performance. In short, Beane has bought low and sold high repeatedly and systematically, and as a result the A's have won more games this decade than every team in the league except the Yankees (whose team payroll is routinely two-to-four times larger than Oakland's).
Check out the current positions of the A's and Yankees on the salary vs. performance graph.
The NY Times has a look at the progress made by Disney since their 2006 acquisition of Pixar, a purchase some say Disney paid too much for.
"There is an assumption in the corporate world that you need to integrate swiftly," Mr. Iger said. "My philosophy is exactly the opposite. You need to be respectful and patient." Key to the successful integration, analysts say, has been Mr. Iger's decision to give incoming talent added duties. Instead of just buying Pixar and moving on, Mr. Iger understood what made the acquisition valuable, said Mr. Price, the author. "If you are acquiring expertise," he said, "then dispatch your newly purchased experts into other parts of the company and let them stretch their muscles."
It also sounds as though Pixar has loosened their high standards since the acquisition...they're outsourcing some animation, doing more sequels (Cars 2, presumably for the merchandising), and making several direct-to-DVD movies.
From this quick overview of why internet shoe retailer Zappos is such a great company, this clever hiring practice:
When Zappos hires new employees, it provides a four-week training period that immerses them in the company's strategy, culture, and obsession with customers. People get paid their full salary during this period. After a week or so in this immersive experience, though, it's time for what Zappos calls "The Offer." The fast-growing company, which works hard to recruit people to join, says to its newest employees: "If you quit today, we will pay you for the amount of time you've worked, plus we will offer you a $1,000 bonus." Zappos actually bribes its new employees to quit!
That's pretty fucking brilliant. It applies a direct incentive of cold hard cash against what the company wants: employees dedicated not primarily to their paycheck but to the company/customers.
Gladwell on the mismatch problem
Picking a subject from his upcoming book, Malcolm Gladwell talked about the difficulty in hiring people in the increasingly complex thought-based contemporary workplace. Specifically that we're using a collection of antiquated tools to evaluate potential employees, creating what he calls "mismatch problems" in the workplace, when the critera for evaluating job candidates is out of step with the demands of the job.
To illustrate his point, Gladwell talked about sports combines, events that professional sports leagues hold for scouts to evaluate potential draftees based on a battery of physical, psychological, and intelligence tests. What he found, a result that echoes what Michael Lewis talks about in Moneyball, is that sports combines are a poor way to determine how well an athlete will eventually perform as a member of their eventual team. One striking example he gave is the intelligence test they give to NFL quarterbacks. Two of the test's all-time worst performers were Dan Marino and Terry Bradshaw, Hall of Famers both.
A more material example is teachers. Gladwell says that while we evaluate teachers on the basis of high standardized test scores and whether they have degrees and credentialed training, that makes little difference in how well people actually teach.
City Café Bakery in Kitchener, Ontario doesn't have a cash register. Instead, they let their customers add up their own bill and put the money into a an old bus fare box. Here's how it works:
"I liked the idea of simplifying things and ... the honour system made a whole lot of sense," Bergen says. "What irritated me about going into Tim Hortons, for example, was waiting in line for something as simple as getting a donut and a coffee. So the thought was, someone can pour his own coffee, grab his own bagel, cut it himself, throw the money in, and walk out. We don't touch 60 per cent of the transaction."
"Everything is rounded off to the nearest quarter with taxes included where applicable," he says. "So every desert is $1.50 (tarts, brownies, and date squares), every pizza lunch is $5, every beverage is $1.25, every loaf of bread is $2.75 (Italian sourdough, multi-grain, and raisin bread on weekends), croissants are $1 each, and bagels are three for $2 (plain, sesame, and multi-grain)."
The bakery conducts audits every six months and Bergen says only once did things come up short.
"Our theory is that two per cent of our sales are being ripped off. 'Ripped off' in the sense that there are people who forget to pay or they make a mistake in paying, and then there are people who deliberately don't pay. And every so often we have to kick somebody out that we know hasn't been paying," he says. "But at the same time we figure we're being overpaid by three per cent. Some people come in and want a $2.75 loaf of bread, but they see we're busy so they throw $3 in and walk out. Or, although we discourage tips, some people still give them to us. But because the staff is paid well (the average wage is $15.50 an hour), the tips go into the general pot."
See also: What The Bagel Man Saw and Business lessons from the coffee and doughnut guy. (via bb)
Yahoo stock plunges?
The big tech/business news of the day is Yahoo's stock "plunge" following the withdrawl of Microsoft's takeover offer. I'm sure plunge headlines sell newspapers and all, but the more long-term story is more interesting.
On Jan 31, the day before Microsoft offered $31/share for Yahoo, YHOO was at $19.18/share (market cap: $26.4 billion) and MSFT was at $32.60/share (market cap: $303.6 billion). At the close of trading today, YHOO closed at $24.37/share (market cap: $33.5 billion) and MSFT was at $29.08/share (market cap: $270.8 billion). In other words, the Microsoft offer increased the value of Yahoo! Inc. by more than $7 billion and decreased the value of Microsoft Corporation by almost $33 billion. In still other words, in attempting to take Yahoo by force, they let an amount equal to Yahoo slip through their fingers. Why isn't anyone writing about Yahoo's amazing stock gains and Microsoft's plunge?
Lessons from Pixar's Brad Bird on fostering innovation in the workplace.
In my experience, the thing that has the most significant impact on a movie's budget -- but never shows up in a budget -- is morale. If you have low morale, for every $1 you spend, you get about 25 cents of value. If you have high morale, for every $1 you spend, you get about $3 of value. Companies should pay much more attention to morale.
Some say the Disney magic is back. Hit TV shows (Hannah Montana), increased revenue from movies (Enchanted), and the acquisition of Pixar are all contributing factors, but new CEO Bob Iger is getting the most credit.
Mr Iger's management style is said by many to have unlocked Disney's creativity. "There was already creativity inside Disney, but Bob removed the barriers to it," says Peter Chernin, chief operating officer of News Corporation, a rival media group. "Michael Eisner was all about his own creativity," says Stanley Gold, a former Disney board director who led a campaign to oust Mr Eisner in 2004, referring to the way in which the former boss meddled in the detail of Disney's parks and movies. In contrast, he says, "Bob pushes creative decisions to the people below him."
Said it before and I'll say it again: hire good creative people, let them do their thing, and ye shall reap the benefits. And Christ, no wonder Disney was sucking so bad:
Before Mr Iger took over, Disney had a factory-like process for animation in which a business-development team came up with ideas and allocated directors to them.
Business guru Lenny Dykstra
Just got around to reading Ben McGrath's New Yorker profile of Lenny Dykstra, the former baseball All-Star who has, somewhat improbably, become rich post-baseball as a business owner and day trader.
Dykstra last played in the majors in 1996, at age thirty-three. Improbably, he has since become a successful day trader, and he let me know that he owns both a Maybach ("the best car") and a Gulfstream ("the best jet").
But maybe not so improbably...Dykstra has a canny sense for business:
Dykstra chose car washes, he says, because of the automobile-centric culture in California, and because "it was a business that couldn't be replaced by a computer chip." He brought his own frustrated consumer experiences to bear in creating the business model, and eliminated many of the usual array of motor-oil choices-startup, high-mileage, various blends-from his inventory. "You get the shit out of the ground," he said, referring to standard Castrol GTX, "or the shit made in the laboratory that's the perfect lubricant" (Syntec). "Meaning, it's either A or B. It's not about the oil. It's about the people. They got confused." He stocked the places with baseball memorabilia and flat-screen TVs, and served free coffee ("the good kind"), so that customers would associate the experience with luxury rather than with cumbersome chores.
One of the characteristics of Dykstra the businessman is his constant use of baseball metaphors and comparisons. Here's a listing from the article:
The Players Club, in contrast to the television installation, would be "major league," he explained, and to that end he was assembling an editorial staff of ".300 hitters," and lining up sponsors to match.
Dykstra's business card gives an address for the "headquarters" of The Players Club, at 245 Park Avenue, which he describes as "big league-like, top five addresses in the world."
Next, he took a call from a designer he wanted to hire for the magazine. "You worked for Esquire and In Style," he said, delivering a pep talk. "That's called the big leagues. It's like in baseball. You can't go above the major leagues. There's not another league. We're teeing it up high, dude."
He quoted from Confucius, Dickens, and Billy Joel, and balanced straight stock picks ("Intel is the N.Y. Yankees of the chipmakers") with musings about fatherhood and current events, like the war in Iraq, seldom passing up the opportunity to draw extended sports analogies.
"My approach in investing is much the same as my approach to hitting," he wrote. "I would rather take a walk or single and reach first than shoot for a home run and strike out swinging."
Dykstra hopes the magazine will help players recognize the importance of marriage and family. He drew three stick figures and named them Tom, Dick, and Harry. Above Tom, he drew a man and a woman-two parents. Dick got a father but no mother, and Harry the reverse. "Do you know the studies and what they've proven?" he asked. "You should look that up, dude. Like, bad things. It's like the one-one count." The one-one count is another of Dykstra's baseball metaphors for life, meant to illustrate that some moments, and the choices they bring, are more fateful than others (i.e., the next pitch makes all the difference), or, in this case, that circumstances set in motion during the early stages of development are difficult to overcome later on. If a batter falls behind, one ball and two strikes, he's in a hole from which, the statistics augur, he will not recover, even if he is Barry Bonds; and if he gets ahead, to two balls and one strike, he wrests control from the pitcher and takes charge of his own destiny. Having two parents puts you in control of life's count, and enables you to become a .300 hitter.
Here's an archive of Dykstra's articles on trading for The Street.
The top five reasons why "the customer is always right" is wrong. I like the idea that a company should be as ready to fire bad customers as they are to fire bad employees.
The Navy Federal Credit Union has embraced green architecture, but not for any of the usual reasons.
"You've been asking for data," Ebbesen says to me. "Well, we definitely have energy savings: we've had one study that said 25 percent and another that said 40 percent. We pay a lot of attention to the energy model because we want to be efficient, because that leads to less pollution. But that's not where the savings are. The savings are all related to productivity." Navy Federal's wealth (they don't exactly have trouble getting long-term financing) means that Ebbesen could swallow higher up-front costs if it means a longer life span-and indeed this building is designed for a 40-year cycle (generous for its type). But to be conservative he sticks to 30 years for the following calculation: over that time 92 percent of the organ-ization's costs goes to employees, 6 percent go to maintenance and operation, and a mere 2 percent are represented by the initial construction investment. "When I show that on a slide," Ebbesen says, "it's kind of like, 'Duh, now are you paying attention?'"
With their new environmentally friendly buildings, Navy Federal has reduced their annual employee turnover rate from 60% to 17%.
You can see it coming...just like in 1999/2000, the failure of all these shitty businesses built on sand will be blamed on an economic downturn and not that companies who make widgets for Facebook are not worth anything close to $500,000,000.
A list of the stocks that have been added to and deleted from the Dow Jones Industrial Average since 1929. Got this from What I Learned Today, which has more information about the Dow (General Electric is the only remaining member of the original 11 Dow stocks).
The Riverdale Garden Restaurant in the Bronx is trying out a novel way of staying in business: they're asking for their regulars to pledge $5000 in exchange for a year of free dinners.
Michael had put The Riverdale Garden up for sale for the past several months and had a buyer. However, the landlord "killed" the deal. We are now forced to close for good or rely on our best customers to put their money where their mouths are! Quite literally........ You will be eating your investment. Bottom line is we have 12 couples so far ready to invest $5000 in dining credits, however we need 38 more.
(via eater)
Kevin Kelly has written a thoughtful post about how to make money in a world where the rules are:
When copies are super abundant, they become worthless.
When copies are super abundant, stuff which can't be copied becomes scarce and valuable.
He then lists eight reasons why people pay money for things that could be free, one of which is immediacy:
Sooner or later you can find a free copy of whatever you want, but getting a copy delivered to your inbox the moment it is released -- or even better, produced -- by its creators is a generative asset. Many people go to movie theaters to see films on the opening night, where they will pay a hefty price to see a film that later will be available for free, or almost free, via rental or download. Hardcover books command a premium for their immediacy, disguised as a harder cover. First in line often commands an extra price for the same good.
Why take the hands-off approach to management?
Taking someone else's idea and increasing the quality by 5% occurs at the price of a 50% decrease in their commitment to execution.
More at the Harvard Business blog, which adds:
One of the greatest leaders I know once said, "Achievement was about me. Leadership is about them."
I've never wanted to be a manager...maybe I'm just too selfish?
Customer service
1. Usually when you order meat or cheese at the deli counter (e.g. "I'll have a 1/2 pound of pastrami, please"), the person behind the counter tries to get as close as they can to the weight you ordered but it's often a little over and you're charged for the overage. I've noticed that what they do at Whole Foods is that they only charge you for what you asked for but they give you the little extra for free. So yesterday I asked for a 1/2 pound of roast beef, but it came out to 0.57 when he weighed it. He lifted a bit of the meat off the scale until it read 0.50, printed the ticket, and put the little extra back on the scale. It's a nice gesture and a good example of using customer service instead of marketing or advertising to give a current customer a warm and fuzzy feeling about the company...and it only costs them 20 cents-worth of roast beef.
2. We went out to eat with some friends the other night but the restaurant was tiny, packed, and didn't have anywhere to put Ollie's stroller. So the owner took the stroller and put it in the back of his truck that was parked out in front of the restaurant. (While there, we dined on a cheese plate with, like, 30 to 40 different cheeses on it, some of which were made by the stroller valet himself.)
Very interesting paper on the economics of prostitution by Steven Levitt and Sudhir Venkatesh.
The transaction-level data we collected suggests that street prostitution yields an average wage of $27 per hour. Given the relatively limited hours that active prostitutes work, this generates less than $20,000 annually for a women working year round in prostitution. While the wage of a prostitute is four times greater than the non-prostitution earnings these women report (approximately $7 per hour), there are tremendous risks associated with life as a prostitute. According to our estimates, a woman working as a prostitute would expect an annual average of a dozen incidents of violence and 300 instances of unprotected sex.
The authors also noted that a prostitute was "more likely to have sex with a police officer than to get officially arrested by one". (via marginal revolution)
Really interesting interview with artist/designer Tobias Wong by Rob Walker.
That question hits an important point in my work (and pet peeve), because many people are always interested in how I get work out there, financially. And it's quite simple. If there's something I really believe in, I just find a way to make it happen. No daily Starbucks (US$4) or cigs ($8) or dining out ($20), and before you know it you've got the money to do something.
Everyone's pissed at the airlines, even their employees.
Why can we not get better quality snack items for our coach customers? One customer recently compared the generic pretzel nubs we serve to the fish food you buy in a .25 gumball machine at any zoo or park.
I like the openness policy of the US Airways CEO...the "employees are going to talk about it anyway" line is exactly right.
Big feature in the NY Times Magazine about online craftsters, specifically Etsy. Thought that this bit about the downside of the site was especially interesting:
Others grouse about another side effect, price pressure: The competition is so intense on the site that new crafters can't break out, and some established ones feel they cannot raise their prices. That's a particularly thorny problem if part of your sales pitch is that you've made a thing yourself; a careful artisan can't respond to lower prices with greater volume.
Artisanship doesn't scale, apprentices take time to train, and people buy products based on price. How do artisans compete?
A fundamental rule of the internet:
Trying stuff is cheaper than deciding whether to try it. (Compare the cost of paying and feeding someone to do a few weeks of [Perl or PHP] hacking to the full cost of the meetings that went into a big company decision.) Don't overplan something. Just do it half-assed to start with, then throw more people at it to fix it if it works.
Cartoonist Scott Adams is going to be blogging a lot less on The Dilbert Blog because it's bad for business.
I hoped that people who loved the blog would spill over to people who read Dilbert, and make my flagship product stronger. Instead, I found that if I wrote nine highly popular posts, and one that a reader disagreed with, the reaction was inevitably "I can never read Dilbert again because of what you wrote in that one post." Every blog post reduced my income, even if 90% of the readers loved it. And a startling number of readers couldn't tell when I was serious or kidding, so most of the negative reactions were based on misperceptions.
(thx, hurty elbow)
The Mafia's ten commandments
When Italian police recently arrested Salvatore Lo Piccolo, the suspected head of the Sicilian Mafia, they also found a list of ten commandments that served as a guide for the behavior of Mafia members.
1. No one can present himself directly to another of our friends. There must be a third person to do it.
2. Never look at the wives of friends.
3. Never be seen with cops.
4. Don't go to pubs and clubs.
5. Always being available for Cosa Nostra is a duty - even if your wife's about to give birth.
6. Appointments must absolutely be respected.
7. Wives must be treated with respect.
8. When asked for any information, the answer must be the truth.
9. Money cannot be appropriated if it belongs to others or to other families.
10. People who can't be part of Cosa Nostra: anyone who has a close relative in the police, anyone with a two-timing relative in the family, anyone who behaves badly and doesn't hold to moral values.
I smell a future bestseller: Leadership Secrets of the Cosa Nostra...it's the new 48 Laws of Power.
Update: There are already business books inspired by the Mafia: The Mafia Manager: A Guide to the Corporate Machiavelli and Tony Soprano on Management: Leadership Lessons Inspired By America's Favorite Mobster for a start. (thx, gleb)
Malcolm Gladwell's new book on the workplace of the future
A few days ago, New Yorker writer Malcolm Gladwell noted that he's almost finished with his third book. I've learned that the subject of this book is the future of the workplace with subtopics of education and genius. (That topic dovetails nicely with business consulting/speaking, no?) As with his previous books, hints of what the book will cover appear in his recent stories and interviews. Most relevant is an October interview with Gladwell in The Globe and Mail on "our working future".
We will require, from a larger and larger percentage of our work force, the ability to engage in relatively complicated analytical and cognitive tasks. So it's not that we're going to need more geniuses, but the 50th percentile is going to have to be better educated than they are now. We're going to have to graduate more people from high school who've done advanced math, is a very simple way of putting it.
Other recent and not-so-recent writings and talks by Gladwell on working, education, and genius include:
- his talk on genius from the 2007 New Yorker Conference
- The Risk Pool - What's behind Ireland's economic miracle and G.M.'s financial crisis? (more, more)
- The Myth of Prodigy and Why It Matters
- Getting In - The social logic of Ivy League admissions
- Brain Candy - Is pop culture dumbing us down or smartening us up?
- Gladwell's personal work space
- Making the Grade
- The Talent Myth - Are smart people overrated?
- The Social Life of Paper - Looking for method in the mess
- The Bakeoff - Project Delta aims to create the perfect cookie
- Designs For Working - Why your bosses want to turn your new office into Greenwich Village
- The New-Boy Network - What do job interviews really tell us?
What will air travel in the US look like in ten years? Five industry insiders respond.
Online shoe seller Zappos demonstrates how to provide customer service on a human level:
I was just back and not ready to deal with that, so I replied that my mom had died but that I'd send the shoes as soon as I could. They emailed back that they had arranged with UPS to pick up the shoes, so I wouldn't have to take the time to do it myself. I was so touched. That's going against corporate policy.
And that's not even the best part...read down to the end. (via 37signals)
In the ongoing battle between the iTunes Music Store and Amazon's MP3 store, Amazon is giving a 20% referral fee to their associates for each song sold through the end of the year. Wow. That's $1.80 on a $8.99 album...I wonder if Amazon's selling these for below cost (like they did with Harry Potter.) (via nelson)
Marginal Revolution and CNN (and New York magazine and Reddit and etc.) asked their respective readers: how much did you pay for In Rainbows, Radiohead's new album which is only available as a pay-what-you-want download. I paid around £8.50 (~ US$17), which splits the difference between a typical album price in the UK and the US. (Actually, what I did was download it from elsewhere because Radiohead's online store was down yesterday morning and then went back to pay for it just now.)
As dentists push their fees higher and make more money on high-end services like cosmetic dentistry, a growing number of people cannot afford treatment for even minor work like fillings. And even though the dentists won't treat those patients who can't pay, the ADA has "fought efforts to use dental hygienists and other non-dentists to provide basic care to people who do not have access to dentists".
"Most dentists consider themselves to be in the business of dentistry rather than the practice of dentistry," said Dr. David A. Nash, a professor of pediatric dentistry at the University of Kentucky. "I'm a cynic about my profession, but the data are there. It's embarrassing.
A Delhi man is doing a booming business in virtual airplane flights. Indians who have never been on an airplane before come from miles around and, for a small fee, experience the interior of an Airbus 300 and meal service.
As on an ordinary aircraft, customers buckle themselves in and watch a safety demonstration. But when they look out of the windows, the landscape never changes. Even if "Captain" Gupta wanted to get off the ground, the plane would not go far: it only has one wing and a large part of the tail is missing.
(thx, catherine)
The last we heard from Malcolm Gladwell, he wrote about Enron and information overload, got hammered by his blog audience about it, and then stopped blogging and wrote nothing more for the New Yorker for the next 10 months. Rumor is that he's busy working on a new book, not shellshocked from the feedback. Anyway, the Globe and Mail interviewed Gladwell the other day about the "working future".
You're going to have to create internal structures that will help people grow into positions; that's really where the real opportunity is going to be. That's what we're going to have to do. That means being more patient with people, being willing to experiment with people, and being willing to nurture people. Those are three things we're reluctant to do at the moment.
Everything is open for negotiation and for three months, Tom Chiarella tried to get deals on everything, from a hot dog to a gallon of gas to a TiVo.
Within weeks I discovered that restaurants will typically give you four desserts for the price of three if you ask for a sampler. That a draft beer is generally good for a free refill with a little prodding. That you can get an extra 20 percent off at Ikea by pressing past the cashiers, past the floor salespeople, up into the bottommost managerial rungs, by comparing the price of one perfectly well priced dresser with its slightly less well priced but better-sized counterpart one floor down.
Update: Bargainist has a piece about how to haggle that's worth a look.
A 13-step guide for buying a car while controlling the sale and the price.
It works only if you truly are willing to walk away...and then refuse to bend when they try to put you off or change the terms. Stay civil, do not let any emotion in. You are on a mission, Marine!
Fantastic advice. My dad is a skilled car buyer and on one particular occasion, spend two grueling hours dinkering with a used car saleman over a junky but good-running truck. He walked out at least twice and kept escalating up to the manager before getting the price down from $2300 to around $400.
A few cost-cutting recommendations for restaurants, focusing on discontinuing "several practices that have been introduced to impress rather than to deliver value".
I also think that the array of amuse-bouches, breads and petits fours that an ambitious restaurant now makes an integral part of the meal has got completely out of hand.
(via bruni)
A list of 15 of the top small workplaces of 2007. If you run a small company, there are lot of good examples to follow here.
Bringing back the housecall
Dr. Jay Parkinson M.D. emailed in to tell me about his new medical practice in Williamsburg. He's got no office (housecalls only), takes appointment requests via SMS, email, or IM, handles some follow-ups over video chat, and specializes in the 18-40 age group without traditional health insurance. The goal, states Parkinson, is to "mix the service of an old-time, small town doctor with the latest technology to keep you and your bank account healthy".
To give you an idea of how the practice operates, here's a recap of his first day on the job:
Yesterday went quite well and I was very happy with the amount of money I kept out of the hands of companies that attempt to take advantage of how difficult it is to find prices for medications and healthcare services. For example, the first patient I saw needed a medication that Walgreens offered for $60. I called my tried and true Williamsburg mom-and-pop pharmacy only a few blocks from Walgreens and talked to Arthur the Pharmacist who said he sells it for $15. "Thanks Arthur." "No thank you Jay." The way it should be done.
My second patient was getting a certain medication for years every month by mail from Walgreens that costs $63 per month. I knew where she could get the same medication for $42 a month. I just saved her $252 per year. After she made her $200 down payment on my services via PayPal, her monthly fee for my services is now only $17 a month. But I just saved her $21 a month on her monthly mail order medication. She's essentially getting the rest of the year of my services for free. Not bad.
Sounds fantastic. If only every doctor was this much of an advocate for his patients.
P.S. Parkinson also happens to be a heck of a photographer (@ Flickr). Some photos NSFW. I linked to this interview about his photography between him and Joerg Colberg last May.
Update: The WSJ Health blog has a short interview with Parkinson, followed by a lengthy comment thread.
The personal lives of CEOs have come under scrutiny lately because what a CEO does in his off-hours seems to have a bearing on how well his company's stock performs. "It found that on average, the stocks of companies run by leaders who buy or build megamansions sharply underperform the market. The researchers don't claim to know why. They theorize that some of these executives might be focused more on enjoying their wealth and less on working hard." (via mr)
Also, I loved that the WSJ published the nickname of "Frederick E. 'Shad' Rowe Jr." Shad Rowe!
More business lessons from the coffee and donut guy
A few years ago, I posted an entry about a Manhattan coffee and donut vendor who let his customers make their own change.
When an environment of trust is created, good things start happening. Ralph can serve twice as many customers. People get their coffee in half the time. Due to this time savings, people become regulars. Regulars provide Ralph's business with stability, a good reputation, and with customers who have an interest in making correct change (to keep the line moving and keep Ralph in business). Lots of customers who make correct change increase Ralph's profit margin. Etc. Etc. And what did Ralph have to pay for all this? A bit of change here and there.
I get my occasional donut in another part of town now, but I noticed something similar with my new guy. Last Friday, the woman in front of me didn't order anything but threw down a $20, received a coffee with two sugars a moment after she'd stepped to the window, and no change. As they chatted, I learned that the woman pays for her coffee in advance. The coffee guy asked her if she was sure she owed today. "Yep," she replied, "It's payday today; I get paid, you get paid." Handy little arrangement.
Several of the web's most popular sites (Digg, YouTube, MySpace, CNN) are using the mullet strategy (business up front, party in the rear) for content to attract both boisterous users and well-heeled advertisers. "They let users party, argue, and vent on the secondary pages" -- that's the party in the rear -- "but professional editors keep the front page looking sharp" -- the business up front.
An update regarding Harry Potter and the Phantom Delivery: Amazon issued me a refund for the book. I'm close to the end of the book...I hope it ends as well.
Harry Potter and the Phantom Delivery
Back in April, I pre-ordered Harry Potter 7 from Amazon. They guaranteed delivery on its release date, Saturday July 21 before 7pm or they would refund the cost of the book...the details of that offer are here. All day Saturday until shortly after 7pm, the UPS tracking information indicated that the package containing my copy of the book was "IN TRANSIT TO FINAL DESTINATION", which is UPS-speak for "the UPS guy/gal who will deliver your book does not yet have it in his/her possession"...the magic phrase for that action is "OUT FOR DELIVERY".
At some point after 7pm, the UPS status page updated to say that a notice was left at 3:36 pm, implying that a delivery attempt was made and no one was home to receive it. (Amazon's tracking page says that UPS told them "Delivery attempted - recipient not home".) No such notice was left. My door buzzer did not ring at 3:36 pm (I was home all day on Saturday) and the doorman of the building next door who takes the deliveries for our building when people aren't home reported no notice or delivery attempt. Here's the complete tracking info from UPS:
Location // Date // Local Time // Description
NEW YORK, NY, US // 07/21/2007 // 3:36 P.M. // NOTICE LEFT
NEW YORK, NY, US // 07/20/2007 // 12:00 P.M. // IN TRANSIT TO FINAL DESTINATION
NEW YORK, NY, US // 07/19/2007 // 4:51 P.M. // DESTINATION SCAN
NEW YORK, NY, US // 07/19/2007 // 4:50 P.M. // ORIGIN SCAN
US // 07/19/2007 // 1:34 P.M. // BILLING INFORMATION RECEIVED
Maybe I'm lying about being home or maybe the person trying to deliver the package made an honest mistake, but it's curious that a delivery attempt could have been made when the package was not even "OUT FOR DELIVERY". Here's what I think happened. I think UPS's network was overwhelmed by Amazon's Potter-volume in some parts of the country and they had no way to deliver all those packages. (The forums for the book at Amazon and Google Blog Search are full of similar complaints from others...warning, spoilers! UPS even offloaded some of the volume to the USPS for "last-mile" delivery.) So, UPS just marked all of those packages they had no intention of delivering as "oops, we missed you, you must have been out".
Let's go back to Amazon's guarantee, which states that the refund "does not apply if delivery is attempted, but no one is available to accept the package". Amazon would be pretty angry with UPS if they cost them a bunch of money due to refunds and, more importantly, the loss of a bunch of customer goodwill...maybe Amazon would switch a larger portion of their formidable package output to another carrier, for instance. So UPS intentionally misclassifying those deliveries covers their ass with Amazon and covers Amazon's ass with regard to the refund.
My copy of the book from Amazon will be here sometime today (UPS doesn't deliver on Sunday), by which time I'll already have mostly finished the copy I bought at Barnes & Noble about 7:30 pm Saturday evening. The extra $20 isn't a big deal to me and neither is having to wait all day to start in on the book. But this book was a *huge* deal for Amazon (2+ million pre-orders out of a first printing of 12 million) and for their customers who desired their instant Potter gratification. Amazon should be hopping mad at UPS over this; UPS shifted the blame from themselves to Amazon's customers...who are in turn going to blame Amazon, doubly so because Amazon probably won't might not issue refunds for those "missed" deliveries because they don't need to. A customer service-oriented company like Amazon shouldn't take this kind of crap from their shipping vendor...incidents like these will erode customer goodwill and eventually their customer base, the retention of which is one of Amazon's stated primary goals.
Update: I've asked Amazon for a refund and am waiting on their reply. From the emails I've gotten from readers so far, it sounds like Amazon is being liberal in the refund policy, as one would expect.
Update: No word from Amazon yet, but the USPS (not UPS) delivered my book Monday morning. It had a UPS sticker on it with instructions to the Post Office to deliver it to me. No update on the UPS tracking page that its been delivered. I'm tempted to leave it unopened in its custom Amazon box as a collector's item. Maybe I can get JK Rowling and Jeff Bezos to sign it.
Update: Amazon issued me a refund for the book.
CEOs must be designers, not just hire them. "Design is no longer just about form anymore but is a method of thinking that can let you to see around corners. And the high tech breakthroughs that do count today are not about speed and performance but about collaboration, conversation and co-creation."
McSweeney's is opening a small design shop called Timothy McSweeney's Design House to "tackle smaller jobs where the personal touch is welcome". If I wanted a job, this is one of the places I'd apply. (via quipsologies)
In the battle of Steve Jobs (CEO of Apple) vs. Steve Jobs (former CEO of Pixar and current Disney Board member), Steve Jobs (Apple) was the clear winner. Apple sold an estimated 500,000 iPhones this weekend -- grossing somewhere between $250 million and $300 million -- while Pixar's Ratatouille grossed $47.2 million.
Update: Some more interesting iPhone statistics, including Apple's stock price increase since the iPhone was announced ($32 billion increase in market cap) and that iPhone was mentioned in 1.25% of all blogs posts over the weekend. (thx, thor)
Update: Apple's stock price went down this morning in heavy trading. I guess Wall Street wasn't so over the moon for the iPhone?
How Whole Foods is using longer checkout lines to ensure faster checkouts in its Manhattan stores. "Whole Foods executives spent months drawing up designs for a new line system in New York that would be unlike anything in their suburban stores, where shoppers form one line in front of each register. That traditional system, they determined, would take up too much space and could not handle the crowds they expected here."
Julian Dibbell on Chinese who farm gold (and perform other for-pay duties) in online games like World of Warcraft. "Nick Yee, an M.M.O. scholar based at Stanford, has noted the unsettling parallels (the recurrence of words like 'vermin,' 'rats' and 'extermination') between contemporary anti-gold-farmer rhetoric and 19th-century U.S. literature on immigrant Chinese laundry workers." Dibbell's Play Money was a great read and deserves wider readership than it originally received.
For the past few years, the workforce at Best Buy has been transitioning from a "how much you work" model to a "how much work you get done" model, with promising initial results. "Hence workers pulling into the company's amenity-packed headquarters at 2 p.m. aren't considered late. Nor are those pulling out at 2 p.m. seen as leaving early. There are no schedules. No mandatory meetings. No impression-management hustles. Work is no longer a place where you go, but something you do. It's O.K. to take conference calls while you hunt, collaborate from your lakeside cabin, or log on after dinner so you can spend the afternoon with your kid."
NY Times on the rise of OpenTable, which wasn't exactly an overnight success. To me, the thing that pushed OT over the edge toward acceptance wasn't so much the public-facing business (let your customers make reservations online) but the software that the restaurants were provided to keep better track of their customers and their habits. It used to be a big deal that Four Seasons Hotels tracked the preferences of all their customers but now any restaurant with the OT system can easily do the same. "Doug Washington, a co-owner of Town Hall, said the notes were not just helpful, they are occasionally indispensable. Next to the name of one regular, who has a habit of bringing in women he is not married to, is an instruction to make sure the man's wife has not booked a separate table for the same day."
Long profile of Steve Jobs on the eve of his fourth act written by John Heilemann, who is one of my favorite technology/culture writers. I'm dying to find out what past Jobs-championed Apple product the iPhone will most resemble: the Lisa or the iPod?
Digg policies from Lifehacker and Gizmodo, which state that the only Digg-worthy posts of theirs are those with "original content, new reporting, treatment, or photos" because "it's not fair when we get the Digg for someone else's work." This seems inconsistent on the part of Gawker Media. One of their main innovations (if you'd like to call it that) regarding the blog format was the idea of linking to things in such a way that readers don't need to actually leave the site to get the full (or nearly full) story. Why let all those readers (and the associated ad revenue) go to some other site to read the story...they might never return. Due in part to Gawker's influence as first mover in the pro blog space, this practice is unfortunately standard procedure for most similar blogs.
McSweeney's in a spot of trouble
Bad news from McSweeney's: their distributor filed for bankruptcy late last year and now they're out $130,000:
As you may know, it's been tough going for many independent publishers, McSweeney's included, since our distributor filed for bankruptcy last December 29. We lost about $130,000 -- actual earnings that were simply erased. Due to the intricacies of the settlement, the real hurt didn't hit right away, but it's hitting now. Like most small publishers, our business is basically a break-even proposition in the best of times, so there's really no way to absorb a loss that big.
To try and make up the gap, they're having a big sale and are also auctioning off some "rare items" like original art from Chris Ware, proofs from issues, signed copies of things, a painting by Dave Eggers of George W. Bush as a double amputee, and so on. In addition to Ware and Eggers, there's stuff from David Byrne, Nick Hornsby, and Spike Jonze. I've long admired McSweeney's for their editorial and business approach...it would be a shame to see them go out of business because of another company's financial difficulties. So give them a hand by purchasing something, if you'd like.
Marc Andreessen on how to hire good people. Don't just hire smart people or people with degrees...look for drive, curiosity, and ethics. "Pick a topic you know intimately and ask the candidate increasingly esoteric questions until they don't know the answer. They'll either say they don't know, or they'll try to bullshit you. Guess what. If they bullshit you during the hiring process, they'll bullshit you once they're onboard."
New York magazine has a great collection of stories about how various NYC businesses go about making their money. They cover everyone from a taxi driver to a sex shop to Goldman Sachs to the MoMA.
Scott Rosenberg quotes Steve Ballmer as saying that only 4 out of the first 30 Microsoft employees were good...the rest "weren't as good -- they just weren't pushing as much". Here are some of the schlubs in question. Ballmer pushed pretty well, I guess...he showed up late to the party and, somewhat controversially, got $15 billion out it.
Why are so many web entrepreneurs so young? Because the beginner's mind is an advantage that the young have and the old can't easily reclaim. "The principal asset a young tech entrepreneur has is that they don't know a lot of things. In almost every other circumstance, this would be a disadvantage, but not here, and not now. The reason this is so (and the reason smart old people can't fake their way into this asset) has everything to do with our innate ability to cement past experience into knowledge." Wisdom is a bitch.
Big-seed marketing. Instead of relying purely on viral marketing or mass media marketing alone, big-seed marketing combines the two approaches so that a large initial audience spreads the marketing message to a secondary audience, yielding more overall interest than either approach would have by itself, even if the message isn't that contagious. "Because big-seed marketing harnesses the power of large numbers of ordinary people, its success does not depend on influentials or on any other special individuals; thus, managers can dispense with the probably fruitless exercise of predicting how, or through whom, contagious ideas will spread."
Update: Full paper with data is here. (via atomiq)
Curious story of what's up with JPG Magazine, a photography mag founded by Heather Champ and Derek Powazek. Derek formed a new company (8020 Publishing) with a friend (Paul Cloutier) and that company bought JPG. Then, says Derek, "Paul informed me that we were inventing a new story about how JPG came to be that was all about 8020. He told me not to speak of that walk in Buena Vista, my wife, or anything that came before 8020." The founding and the first 6 issues of JPG were removed from the site and Derek left his company. More from Heather and on MetaFilter, including this nice sentiment: "The great thing about a labour of love is the love, not the labour."
The new postal price restrictions on thickness and whether the envelope is "flat-machinable" or not seem like the USPS passing along internal problems to their customers, the same crappy stuff that banks and the airlines do. Keep the process simple...we don't care about your technology can and can't do. Figure it out.
A small grocery store in Emo, Ontario is competing with a nearby Wal-Mart by purchasing goods from Sam's Club and reselling them at lower prices than the Wal-Mart offers. (via girlhacker)
Matt Haughey recently launched a new blog about "doing business online" called fortuitous. In his introductory post, Matt describes his job as "professionally screwing around on the web", which is an accurate description of my current vocation as well.
The long-term success of films isn't always determined by how they did at the box office. Traffic made $124 million at the box office in 2000 while Requiem for a Dream made only $3.6 million ($9.50 of which was mine), but Requiem gets rented 33 percent more from Netflix than Traffic. 'It's almost impossible to go onto someone's MySpace page now and not find a reference to [the Coen brothers'] "The Big Lebowski" or [Terry Gilliam's] "Fear and Loathing in Las Vegas"' - two movies that caused barely a ripple in the theaters."
Big Box Watch is a map that displays future big box store openings in the US. The site currently tracks Best Buy, Home Depot, Ikea, JCPenney, Kohl's, Lowe's, Target, and Wal-Mart.
A Japanese temple building company goes out of business after 1428 years. Kongo Gumi was founded in 578 and was the "world's oldest continuously operating family business".
World map of where Wal-Mart gets its products. China dominates, Russia and most of Africa doesn't exist, and Europe is tiny. (via fakeisthenewreal)
Regarding the recent Google news (YouTube, DoubleClick, Dodgeball), Fred Wilson tells us it's time to pour a little malt liquor on the ground and say goodbye to the old Google, the Google that we all know and love, and welcome the new Google, a big company, for better or worse. "Google's lawyers are going to become their most important asset and when lawyers are more important than engineers to a company, you lose."
Dodgeball founders leave Google and that leaves Dodgeball probably dead. Then why did Google buy Dodgeball exactly? Not for the founders...they left. Not for the tech. To build it up into a profitable company? (Nope, they didn't put any resources into it.) To kill it before some other company (Yahoo, Microsoft) got their mitts on it? For the PR value? Why did they even bother?
Update: Official thumbs-down announcement here. "It's no real secret that Google wasn't supporting dodgeball the way we expected. The whole experience was incredibly frustrating for us - especially as we couldn't convince them that dodgeball was worth engineering resources, leaving us to watch as other startups got to innovate in the mobile + social space. And while it was a tough decision (and really disappointing) to walk away from dodgeball, I'm actually looking forward to getting to work on other projects again."
In the high stakes game of making restaurant reservations in NYC, restaurants and their patrons are engaged in attempting to outflank one another in vying for tables at prime times. "I have a well-connected friend in the entertainment industry, and I often say I am calling from his office in order to score a weekend reservation at a crowded restaurant. If NYC restaurants are going to play the game this way, we have no choice but to play along with them."
I feel like I've linked to this before but here it is again (maybe): a list of how companies got their names. "Mattel - a portmanteau of the founders names Harold 'Matt' Matson and Elliot Handler." (via khoi)
Stay Free interviews Giles Slade, the author of a book on planned obsolescence. "Companies profit more when products have shorter lifespans - because they sell more products that way. This is no conspiracy theory but, rather, simple economics. Small wonder, then, that product lifespans are shrinking across the board. In 1997, a PC was expected to last 4 or 5 years; by 2003, only two years, and today the life expectancy is even less."
Interesting article about the myth of American women opting out of the workforce to stay home to raise families. Most of the stories focus on white, married, upper-class women with high-earning husbands, maternity leaves are getting shorter, and bias and inflexibility in the workplace forces many women to "choose" to stay at home with the family. "The American idea of mothering is left over from the 1950s, that odd moment in history when America's unrivaled economic power enabled a single breadwinner to support an entire family. Fifty years later we still have the idea that a mother, and not a father, should be available to her child at every moment."
Business innovation. "Southwest has been able to generate more profits over the last 30 years than all of its incumbent competitors combined." Other examples: Google, Vanguard, W.R. Hambrect.
Zombie brands: products that were discontinued but then come back to life. Examples: Tab, McRib, and Life magazine. More on zombie brands.
Quentin Tarantino talks about his success in the movie business. The bit about just doing something and not having to ask permission is great: "Here's the thing: they can write a mean letter, they can write a mean memo, but these guys don't have any real fight in them. If you're an artist, as opposed to a careerist, and your movie is more important to you than a career in this town, they can never beat you. You have a loaded gun, and you know you've got what it takes to put it in their faces and blow their heads off."
Apple Store prototypes
Not sure why I'm surprised, but when Apple came up with the idea for their Apple Stores, they appoached the design of the stores like they would any other product: they built a prototype first:
"One of the best pieces of advice Mickey ever gave us was to go rent a warehouse and build a prototype of a store, and not, you know, just design it, go build 20 of them, then discover it didn't work," says Jobs. In other words, design it as you would a product. Apple Store Version 0.0 took shape in a warehouse near the Apple campus. "Ron and I had a store all designed," says Jobs, when they were stopped by an insight: The computer was evolving from a simple productivity tool to a "hub" for video, photography, music, information, and so forth. The sale, then, was less about the machine than what you could do with it. But looking at their store, they winced. The hardware was laid out by product category - in other words, by how the company was organized internally, not by how a customer might actually want to buy things. "We were like, 'Oh, God, we're screwed!'" says Jobs.
But they weren't screwed; they were in a mockup. "So we redesigned it," he says. "And it cost us, I don't know, six, nine months. But it was the right decision by a million miles." When the first store finally opened, in Tysons Corner, Va., only a quarter of it was about product. The rest was arranged around interests: along the right wall, photos, videos, kids; on the left, problems. A third area - the Genius Bar in the back - was Johnson's brainstorm.
Lots of other great stuff in the article as well. Sounds like the Apple Store is an underrated piece of Apple technology.
My friends Zach and Youngna are in the NY Times this morning in an article about how difficult it is for "senior beauty analysts" and "vice presidents for global marketing" to produce and market products to twentysomethings who wouldn't even trust a "senior beauty analyst" to watch their bag while they went for a pee. The Times also had to draw a distinction between Mr. Klein, Calvin and Mr. Klein, Zach: "no relation".
David Chang of Momofuku and Ssam tells us about the "money piece", the ticket in the kitchen of a restaurant that gets randomly upgraded to VIP (or soigné) treatment for the evening. Nice idea.
Sometimes I think that what Americans are best at is inventing new forms of conspicuous consumption. A man who sells snow guns for personal use (so that the kids can play in the snow even when the weather doesn't oblige) says, "New Jersey is a big area for us. There's no snow, and lots of disposable income."
Tax tips for graphic designers and visual artists. "If seeing the visual art of others is vital to your own creativity, keeps you abreast of current design trends, or clues you in to the latest fashion, then consider the costs [of going to the movies or renting DVDs] a tax deduction." (thx, shane)
Update to the whole annoying Flickr/Yahoo login business: Heather Champ is personally giving refunds to people with pro accounts who don't want to switch their login to Yahoo.
Update: Just so this is clear, Heather is refunding people out of her own personal PayPal account and funds. Anyone who takes her up on it gets a punch a nose from me.
Update: I didn't read this carefully enough...it's not Heather's personal money. And no punch in the nose, although I might poke you in the ribs or something. (thx, rich)
I wanted to write more about this, but I don't have the throughput right now and the article is 5 days old at this point, so this shorter post will have to do. Michael Pollan, who is doing some of the best food writing out there right now, wrote an article in the most recent NY Times Magazine on how we should be thinking about eating. In it, he blames the rise of nutritionism (the emphasis on the nutrients contained in food rather than the food itself) for our increasingly poor diets. This goes in the must-read pile for sure, if only for the great "silence of the yams" pun. If you absolutely can't handle the length, skip to the "Beyond Nutritionism" section at the end for Pollan's rules of thumb for eating, my favorite of which is #5: "Pay more, eat less."
Update: Meg summarizes Pollan's rules of thumb with some notes of her own.
Creators vs. lawyers
Here's a fun rumor. I heard that the staff of the Daily Show and Colbert Report upload the shows to YouTube as soon as they can after the shows air and then the next day, lawyers from Comedy Central hit YouTube with takedown requests for the uploaded shows. Which makes total sense...sort of. The people making the shows want them to be seen while the lawyers want to ensure that people are paying to see them. It's a crazy media world we live in.
An update on Bryant Simon, the fellow who's studying Starbucks from around the world in order to write a book about the company. An observation from Britain: "Starbucks is dirtier in Britain. Americans have been taught to do part of the labour, and they clean up after themselves. In the US, part of Starbucks' appeal is its cleanness." 2006 New Yorker piece about Simon and his Temple University page. (via bb)
CEOs of companies whose board members are socially well-connected get paid significantly more than those who work at companies with less connected board members. "Academics have found little evidence that higher executive pay leads to better company performance, and the recent study of three thousand companies actually found that the firms whose directors were the most well connected -- and which paid their C.E.O.s most lavishly -- in fact underperformed the market. Markets work best when people make independent decisions about how much a commodity -- in this case, the C.E.O. -- is worth. They stop working well when people simply imitate what others are doing, or when non-market factors (like how well you get along with the boss) intrude."
Lengthy interview with Steve Jobs from 1995. "I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance."
The future of movies
David Denby had a great piece in the New Yorker last week about the present and future of movies. I was surprised to learn that Hollywood hates the movie theater-going experience as much or more than the rest of us:
Consider the mall or the urban multiplex. The steady rain of contempt that I heard Hollywood executives direct at the theatres has been amplified, a dozen times over, by friends and strangers alike. The concession stands were wrathfully noted, with their "small" Cokes in which you could drown a rabbit, their candy bars the size of cow patties; add to that the pre-movie purgatory padded out to thirty minutes with ads, coming attractions, public-service announcements, the