The Difference Between Cost and Value

Published on December 30, 2008 in Uncategorized. 0 Comments

Cost is what is spent.

Value is what is earned.

Cost is time, money, energy, lost opportunity, reputation, etc.

Value is time, money, energy, lost opportunity, reputation, etc.

Some things cost a lot, and have little value.  Some things cost a little and have a lot of value.

Sometimes, you will face a decision between: something that costs a little and has a little bit of value, and something that costs a lot and has a lot of value.

The decision can not always be systematized.  In other words, it is often situational.

Be aware, that when you decide to move with a decision that has little cost for a little bit of value, a(n opportunity) cost of that decision is the value of the declined decision.

Plurality and Domain Names

Published on December 10, 2008 in Uncategorized. 0 Comments

I recently designed an idea for a new website, so I purchased the singular and plural domains.  I bought both for the sake of protecting the idea.  The domain names are the name of a kind of person…for example “soccerplayer.com” and “soccerplayers.com.”

I was giving thought to which domain I would use, and realized that the decision and conversation is important for directing the interpretation of someone who interprets the name of the domain, be it through language, work of mouth, or as a regular reader.

I realized that if I wanted to create a community website, that it would be best to use the plural, as the name connotes that multiple people would congregate at this website.  For an interpreter of the plural domain name, that the domain suggests multiples of these people will congregate here, the assumption is that the content caters to the benefit of a group of people.

I also realized that if I wanted to create a website that focuses on the individual (be it the writer or the reader), that it would be best to use the singular, as the name connotes that one person is important on this website.  For an interpreter of the singular domain name, that the domain suggests one of this kind of person will congregate here, the assumption is that the content caters to the benefit of one the author or reader.

“Feel Free to…” vs. “Please…”

Published on December 4, 2008 in Uncategorized. 0 Comments

I have recently been giving much more pointed focus to my communications, the language that I use and its effectiveness, different writing styles, etc.

One thing I have noticed is that I often say “feel free to…” and then an action that I wish for the other person to take.  For example:

  • Feel free to call me next Tuesday afternoon.
  • Feel free to give me feedback on the document.
  • Feel free to do X if Y.

The situation here is that your request is that the person “feel free.”  That is it.  That is the extent of the request.

Where this is problematic is that you do not usually want someone to simply “feel free.”  Usually, this kind of request is has been made for the sake of taking some action.  Not to simply “feel free.”

It is not effective to request that someone feel free.  (…unless you are in a spiritual setting or yoga studio, perhaps.)  It is effective to request that someone take action.

The solution here is a simple change of wording, from “feel free to” to “please,” or even leave it out, depending on the situation.

The request becomes more direct, clear, and purposeful.

  • Call me next Tuesday afternoon.
  • Please give me feedback on the document.
  • Do X if Y.
  • Please eliminate “feel free to” from the structure of your requests.

The Importance of Scale and Analysis in Research

Published on November 7, 2008 in Uncategorized. 0 Comments

Some people like lots of data.  I love it.  It’s thorough.

The problem with large amounts of data, though, is that you get lots of junk…information that’s irrelevant to your purpose.

This is where Analysis comes into play: The discernment of what is valuable and what is not.

Most people fall short because they don’t understand how to effectively analyze large amounts of information, quickly.

As time invested is as important a metric as quality of analysis, most people make the decision to make the size of their data smaller for the sake of getting through it in enough time.

This is not the most effective way to research.

The ideal solution is to gather as much information as possible, as quickly as possible, then analyze the data as quickly as possible and at as high a quality as possible.

When you figure that out, you’ll be more effective in less time.

And since we are compensated for what results we produce, not our time, does it not make sense to become good at producing more at a higher quality, faster?

Kudos to JPMorgan Chase (And Why I Love the Fundamental Design of Business)

Published on November 3, 2008 in Uncategorized. 0 Comments

This is an e-mail that I just sent to some friends, and thought that it might be worth putting out there…

I’ve mentioned to you both how one of the beautiful (yes, beautiful) things about the fundamental design of business is the design of its flexibility.

Without going on too much of a tangent, I’d also like to acknowledge that this design has been improved by the US government’s laws and regulations of businesses.  It’s my understanding that this is a significant contributor to the success in relation to the global economy that the US has seen in the past 150 years.  I’ve intentionally avoided politics, but I anticipate that when I do become involved, that my position will very much be rooted in which side continues to effectively allow business to innovate.  After all, it is the economy (the diverse and complex ecosystem of financial transactions) that most influences our experience with the world, both as a part of this country and as a part of the global economy.

The reason I’m sending this e-mail, though, isn’t about politics.  It’s about the design of business.  Particularly, how innovation, competition, and producing valuable results are part of what constitute the quality of a business.

This article is about how JPMorgan is addressing the “financial crisis” we’re in.  Arguably, the housing markets are the single largest direct catalyst for the position that we find ourselves in today.  The government proposed solutions that were simply band-aids.  Alternatives were presented that were also band-aids.

People wanted $700B to reinvest into banks to prevent the economy from collapsing – that didn’t happen, but lower gas prices did…why that’s significant is that – assuming prices stay where they are for 12 months – that’s a savings of about $700B to the consumer economy based on how much gas is used each day in the US.  This doesn’t even factor in the effect on food prices, etc.  But, I digress.

JPMorgan has finally decided to leverage the innovation and creativity necessary in business to design an agreement with their customers – the very same ones who are putting their company in jeopardy – so that they can be transferred to a new loan structure that both benefits their business as well as their customers.

This is the first that I’ve seen of a bank making decisions like this to address the situation, and one that I personally believe is a step in the right direction.  It places responsibility on both parties: the banks for issuing the loans, and the consumers for extending beyond their means.  This is significant because people don’t often address the responsibility that a customer has to a business – and one of those is making a smart decision about how they transact (as a transaction is a mutual agreement) with that business.  At the same time, the banks obviously (as obvious as hindsight is) should not have been extending the loans.

This solution allows both parties to accept responsibility in a productive way, and in a way that allows both parties to learn. The thing that concerns me about the $700B bailout is that the single most important part of the learning process – experiencing the consequence of negative effects – is nearly avoided…it nearly prevents learning from happening.  By having the banks take responsibility and experience the negative effects of their loan approval standards, and by having the consumer experience the effects of foreclosure (or near-foreclosure), both parties are able to learn and move forward more powerfully.

This solution could not have been designed or imposed by the government.  The government is not concerned with telling companies what to do, rather, they are concerned with telling companies what not to do.

Business thrives in the world of what to do, and provides consumers with that same power.  For business – and consumers – to evolve, both parties must be allowed to learn.  Which entails accepting and dealing with the consequences of the decisions made by both parties.  Only then, do both parties truly have the power that each looks to achieve as is inherent in the nature of transactions.

http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db20081031_008808.htm

Ben

Why I Eat the Same Meals Every Day…Four Times a Day

Published on October 31, 2008 in Uncategorized. 0 Comments

A while back, I posted: Why I Wear the Same Clothes Every Day.  Today, I’m going to talk about why I eat the same meals every day.

Before I do, let me make one thing clear:

I Love Food.  I Love Cooking.  I Love Eating.  And there isn’t a food I won’t try twice.

Then why would I eat the same food every day?

Before I continue, you should know:

  • I eat no less than four times a day.
  • I eat for no more than $5 a day.
  • I’m never hungry.
  • My energy levels are always consistent…I never have energy spikes or dips.
  • Eating this way is not only healthy for me, but I’ve also lost fat mass while increasing muscle mass.
  • One day a week, I eat whatever the heck I want.  And I take full advantage of it.

Just as with the benefit of wearing the same clothes every day – that I free up mental space for other things – I’m able to do the same by eating the same foods every day.

Additionally, this kind of routine allows me to find the best prices for food, the fastest ways to cook and prepare my food, and the healthiest ways to eat.  I do it over 20 times a week, after all.  You end up getting pretty good at doing something you’re consciously trying to improve 20 times a week.

What your body really needs in terms of food.

Your body is pretty simple.  The human body hasn’t changed much in its requirements in thousands of years.  What has happened is that people have changed as a result of their nutrition and diets.

I’m going to cut the science that some people find boring, but that I’ve become fascinated with over the past year.  Here’s what you need to know.  Click the links if you’re interested:

An exception to what you probably think you know:

So…..what the heck do I eat?

Every meal I have consists of the same structure:

  • At least 30g of protein from a source of complete protein.
  • About 3/4 cup of a low GI carbohydrate source.
  • About 1/2-3/4 cup of vegetables for vitamins.
  • About 1/4 cup of a legume for a complimentary source of protein and low GI carbs.  In addition, these are a great source of fiber which is fantastic for several reasons.

What my meals look like…

Here are the meals that I have eaten regularly over the past three months…it’s like a game…Mix and match to win!

  • Protein: Chicken breast, eggs, beef, fish or a protein shake.
  • Low GI Carbs: Brown rice, couscous or whole wheat pasta.
  • Vegetables: Spinach, various mixed vegetables, broccoli, etc.
  • Legumes: Quinoa or lentils.

For flavor (if I decide to add anything), I usually turn to hot sauce, red pepper flakes, etc.  You’d be surprised at how much you can do with that basic structure.

I just couldn’t do that.  Don’t you get bored with it?

This is the most common response I get from people when they find out I eat the same meals.  My answer?

I very specifically made the decision that food was going to be much less of a source of happiness for me, and more of a source of nutrition and physical value.  My happiness comes from what I’m able to do by being in shape, saving time, saving money, etc, rather than food.

Basically, I have things that I want to do that, in order to do them, my body needs to be functioning well.  This includes playing hockey, riding my bike, rock climbing, hiking, etc.  I’ve had times in my life when I’ve been out of shape.  The reality is that you have more opportunities to do awesome things when you’re in good shape.  That starts with eating right.

But wait, there’s more!

Once a week, I eat whatever the heck I want.  And I mean, whatever I want.

Most weekends (most being more than 50%), I eat no less than a half gallon of ice cream, quite often, a full gallon is had during that day.  I just really love ice cream.  Seriously.  It’s all cold, and sweet, and delicious…..

Last week, it was two bags of gummy worms in 3 hours.  I totally could’ve eaten another two bags, but I paced myself since I was climbing the next day.

Final notes…

  • I’ve been experimenting with this in other ways recently.  For example, I’ve eaten a gallon of ice cream over the past 4 days.  You’ll have to do it to know how it works.  Interestingly, though, I find that that much sugar on a regular basis now makes me tired.
  • Buy your food at Wal Mart.  If you have ethical reasons for not shopping there, fine.  If you don’t shop there because you “feel bad” shopping there, get over it and cut your food bill in half.
  • A downside of this is that whenever you go out to eat and get your $15 bill, you’ll think to yourself “Crap.  That’s three days worth of food.”  You might find more common ways of eating to be more ridiculous.
  • I cook my carbohydrates in bulk and in advance.  I would say that the total time I spend preparing food each week – all of my meals – is less than 2 hours.  Think about that next time you’re on a solo one-hour lunch break.

The Legal Note:

I can’t recommend that you do this.  Consult your doctor.

Locus of Control and Your Business

Published on October 23, 2008 in Uncategorized. 0 Comments

Locus of control is a term in psychology which refers to a person’s belief about what causes the good or bad results in their life, either in general or in a specific area such as health or academics. It can either be internal (meaning the person believes that they control themself and their life) or external (meaning they believe that their environment, some higher power, or other people control their decisions and their life). Understanding of the concept was developed by Julian B. Rotter in 1954 as an important aspect of personality. - Wikipedia

For some time, I’ve been fascinated by the idea of one’s Locus of Control.  Particularly in the differences in how people respond and act in the world, depending on if their locus of control is internal or external.

The most useful thing to know about Locus of Control is that it  seems to directly correlate with happiness, success, and the potential meaning that one can contribute to the world. (more)

Some basic observations about individuals and their Locus of Control:

External Locus of Control:

  • The individual wonders why (x) happens to them.
  • The individual’s emotions are dictated by their surroundings and surrounding events.
  • The individual automatically responds to what happens around them, and are often in situations they don’t want to be a part of.

Internal Locus of Control:

  • The individual wonders how they can affect the world.
  • The individual’s emotions are dictated by how they chose to have them.
  • The individual chooses how to responds to what happens around them, and often creates the situations they wish to be a part of.

But…the idea occurred to me, could the idea of Locus of Control be applied to the personality of a business?

The Locus of Control of a Business

Let’s look at the above situations and replace “individual” with “business.”

External Locus of Control:

  • The business wonders why (x) happens to them.
  • The business’s emotions and decisions are dictated by their surroundings and surrounding events.
  • The business automatically responds to what happens around them, and are often in situations they don’t want to be a part of.

Internal Locus of Control:

  • The business wonders how they can affect the world.
  • The business’s emotions and decisions are dictated by how they chose to have them.
  • The business chooses how to responds to what happens around them, and often creates the situations they wish to be a part of.

Where is your business’s Locus of Control?

If you’re not sure, look at the conversations you’ve had recently.  Responding to tight financial times is prudent – but are conversations around the water cooler and in meetings blaming your limited success on these external factors?  Or are you looking at what opportunities now exist that didn’t before, where your business can excel and capitalize?

Business as Art. Part 1 of N.

Published on October 21, 2008 in Uncategorized. 0 Comments

A friend of mine is an artist.  She’s creative, smart, and thinks in pictures.

I’m definitely (perhaps) not an artist.  My creativity comes from other places, my intelligence is often debatable, and I think very much in words.

She showed me her thesis project in school and explained what it communicated.

When she was done, she said…

“I don’t know.  I wanted to say something.  I could have written an essay about it, or I could have made art to say it.  I chose to make art.”

And I choose to write (or think…in words).

We May Not Be Too Different, Though…

Paul Graham makes art with words.  And businesses.  And technology.  And paintings.

His book, Hackers and Painters, is a series of essays he has written, the most well known being…well….Hackers and Painters.

In the article, he he fundamentally proposes that…

“What hackers and painters have in common is that they’re both makers. Along with composers, architects, and writers, what hackers and painters are trying to do is make good things.”

Going back to my friend and our differences, it seems that the only difference may be our medium.  Hers being imagery and the moods it creates, mine being language and the value it creates.

Thus, I would also add to this list: Entrepreneurs.

It’s Easy to Think of an Artist as a Maker of Art…

But it’s not so easy to see an entrepreneur – or better yet, a businessperson – as a maker of art.

The most common conversation that I have with people about the idea of business people as artists, is that what is produced, is received – or interacted with – very differently than art.

To appreciate a work of fine art is to almost give yourself to it and allow its influence.  Our demands of art are subtle, but they exist; if it doesn’t capture our attention, we move on, disallowing it to receive our appreciation.

My friend once told me that what defines the quality of art is how well it captures your attention.

I might argue that businesses are interacted with in a similar manner.  That a consumer yields oneself to a product or brand and allows it to influence how we choose to live our lives.  Likewise, if the product or brand doesn’t capture the attention of consumers, it, too, is passed over.

The Artistry of Business…

…comes from an understanding of consumers and their psychology.  What are their needs?  What are their wants?  What are they willing to exchange for those needs and wants to be met?

For a fine artist, you might say that a similar thought process is generated.  They must take into concern those who will be appreciating the art, what they wish to see, and what they’re willing to give in order to appreciate what is offered.

When communication is designed to meet the requirements of its customer in a way that captures the customer’s attention, the business person becomes an artist.

The artistry, here, exists in how well this single thing is accomplished.

There is no other metric.

There Are Only Two Parts to Your Business

Published on October 16, 2008 in Uncategorized. 0 Comments

Marketing and Operations.

When done well…

Marketing brings money in…and Operations makes it useful.

Operations innovates in a way that Marketing is better able to compete.

Marketing communicates needs in a way that Operations designs innovation.

They’re symbiotic…they need each other.

So…

Next time you operations folks think about jumping down that sales guy’s throat, think about how you can communicate to him in a way that will let him do his job better….and ask for his feedback for what the market wants.

Next time you sales folks think about jumping down that operations guy’s throat, think about what you can better communicate the market’s needs for your products…and ask to better understand how your product or service works.

A business can be that simple.

If you stop making it any more complicated.

Free Applications You Should Be Using On Windows

Published on October 15, 2008 in Uncategorized. 0 Comments

I like free.  I think that there’s so much free software out there that it doesn’t often make sense to purchase software – especially for a small to medium sized business, the expense can ramp up pretty quickly.

For a (relatively) independent contractor, such as myself, free is fantastic.  Especially since my work is quite technical, my needs push the limits of most users.  At the same time, I do things that some people don’t know that they can do…and if they knew they could do them, they might think of how to solve some problems a bit differently.

I’ve put this post together in the hopes that you’ll find some new ideas for how to do things for yourself or your business.

Run a Web Server

There are a ton of reasons to run a web server.  For me, I use a different operating system (Linux) for my public web servers.  However, my private web servers (three of them) run on the following configuration which is free, easy to install, and amazingly powerful.

It’s called XAMPP, and is a combination of Apache (web server), MySQL (database application), PHP (programming language) and Perl (programming language).  All of those applications are free, and will let you run almost any application – certainly any application that can be developed.

XAMPP also comes with a mail server, FTP server, etc.  It’s an all-in-one install that’s deliciously easy. You can also download XAMPP for Linux, Mac, and Solaris.  I also run it on OSX and haven’t had a single problem with it.

Automate Your Processes

I <3 automation.  It’s efficient, easy, and lets you work without doing work.  For me, I constantly have at least two computers that are churning through massive amounts of data….all because of:

AutoIT

Until I recently found AutoIT, I had used other, much more expensive software to perform my automation.  Now, I just make a text file of reports to run, and my AutoIT scripts run my computer as if I were there, 24×7.  The most basic use of this that I’ve implemented has been to read a file for a report to run, run a report, save the report, then go to the next report in the list and do it again.  I’ve written about using this before, and can’t speak highly enough about it.

If you think that it’s only for internet-based applications, consider that a friend of mine in a non-internet industry is using it to run through highly time-intensive printing jobs that often take up to an hour per document.  In the past, they had to have someone sit at their computer and use an entire day to print documents.  Now, they let it run at night, and it’s done in the morning.

FTP Files To and From Your Server

I have no idea why I hadn’t found this before.  I even paid for an FTP application for my MacBook while going through the process of looking for a solid FTP application.

I’ve been using FTP since about 1998, and have used almost every application out there.  FileZilla…well, it just works.

Office Documents: Like MS Word, Excel, Powerpoint, etc.

Most people/businesses don’t need to spend hundreds of dollars for Microsoft Office.  They just don’t use the functionality to justify the cost.  The answer?

Open Office.  I’ve been using Open Office for over three years now, and other than some of the beta versions, have never had a problem with it.  I should note that I only use the Text Document (Word) and Spreadsheet (Excel) applicantions, because that’s all I need.

Through the years, I’ve opened thousands of documents from clients, websites, etc, and probably sent the same number to clients without a single mention from the client.  IMO, that’s the ultimate standard for performance.

Defrag Your Hard Drives

For some people, that sounds “technical.”  Well, it just means that your disk drive is usually so much of a mess that it slows down your performance.  The way to remedy this is to defrag it.

The default Windows defrag utility is actually (I’ve heard) wayyyy outdated and stripped down version of a commercial application called DiskKeeper.

But, you don’t need to purchase the new version of DiskKeeper, you can just download:

Smart Defrag

There are two things you want your defrag utility to do: defrag, and shift files to one side of the drive.  This does both.

Oh, it also does background defragging.  And scheduling.  And it’s fast. No need for anything else.

Other Free Utilities I Use (Some of which also work on Macs)

Mozilla FireFox: Web Browser

uTorrent: Torrent Downloader

Adobe Reader: PDF Viewer

Domain Name Analyzer: Bulk Whois Lookup

EditPad Lite: Text Editor (I love it for its simplicity and multi-line search and replace…been using it for years.)

Xenu’s Link Sleuth: Check Broken Links on Your Website (I’ve put this application through the ringer and had it fail only once in 8 years)

If you have any others that you’d recommend, leave a comment below – I’m sure I, and others, would love to hear what you use!