The best way to lose is to not change.

Abandoned house behind Rockland Lake
Abandoned house behind Rockland Lake (Photo credit: Elephi Pelephi)

Last year, I read in Harvard Business Review that the most difficult position for a business to be is at the top of it’s sector. You are making lots of money and doing well, but you are also the target of all of the competing organizations and, to make matters worse, you generally require the world to stay the same as long as possible to stay up there. Otherwise, you need significant capital investment in innovation because you can’t just copy your competitors as they try to imitate you.

Everyone is watching your every move to find mistakes or little ways they can crack your castle. Case in point, look at Apple. It’s surprising how much everyone enjoys taking the top guy down a notch whenever they can.

Ironically, the article mentioned that being number two is actually pretty sweet though. Tou have the most money of the non-top players, you can copy the good innovations that the top guy has and build on them yourself. You usually have enough capital to invest in solid R&D, and since you aren’t at the top, your shareholders are not as adamant about “not wasting money on R&D.” Samsung has done a great job copying Apple and then doing minor innovations to make their products just a touch better for short periods of time.

For many years, I believe Apple got around this issue by having a genuine salesman, Steve Jobs , convince the shareholders to allow for some pretty heavy investment in design and development. That it would pay off in the long run. It really did, the stock took off, the iPad, iPhone and App Store really have changed how we all interact with the world, and are the best selling products in their sector.

However, with the new CEO, who is not a saleman, but more of a technocrat, they are slowly sliding. The investors are demanding dividends instead of value creation. They don’t see that iPhone is still outselling everyone else. No one is pointing out to them the fact that the profits last year by Apple dwarfs the entire revenues of Google. They don’t have a CEO who is able to show them that investment in good R&D generally implies higher yields down the road in exchange for lower yields right now like another iPhone or iPad. They don’t have a CEO who knows how to rile the troops and make them uncomfortable with where they are at. The iPhone 5 was the most boring update I’ve ever seen.

Why do you think Apple is sitting on such a stockpile of money? Why do you think every update they are doing is incremental or price based?

Steve Jobs understood the cardinal rule about the universe – Always expect change. You don’t ride a wave by swimming behind it.

Unfortunately, many businessmen, technocrats, politicians, and general elite hate this rule. It’s so much easier to work and plan if everything stays the same. Over the past decade I’ve read article after article with this common mistake. Many assume, or hope, things will always stay as they are and if they don’t stay as they are, they assume that we need to work 100% to maintain the status quo.

This is the birth of the Capitalism is the best system of economy, democracy (or our variant of it) is the best system of government, the current layout of federal and state powers are the best way to do it. This is why we hear “Don’t ever question the status quo.”

This is not due to maliciousness though, it’s due to the fact that the status quo, a stable system, is the easiest system to control. Technocrats, politicians, and elites are already in power. They want the system to stay the way it is so their plans (some of which are utopian) can be enacted as they see fit.

This is the key to why they will all eventually fail.

You cannot stay in power indefinitely by forcing a status quo. While, in theory, if you maintain the status quo as long as possible, you will be on top the heap as long as possible. if you control the change, encourage it, and guide it, you will survive the fact that the world changes and we must all change with it.

But, simply put, the best way to lose is to stand still. The game is always changing, the world is always changing, and even if you control everything, general complexity theory will eventually kick in and all of your models and theories will be for naught.

Absolutely nothing is permanent. Once you realize that, it’s a whole lot easier to move on to better things.

Sometimes it sucks, but that’s what faith in the future is for.

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Faith, trust and disorder

Simplified scheme of an organization
Simplified scheme of an organization (Photo credit: Wikipedia)

I had an interesting and thought-provoking conversation yesterday with a good friend. I haven’t talked with him in many years, and since we last spoke he has worked up the ranks in his business to a project lead position. It really put a lot of things in perspective since I have been hanging around with many CEOs, MBAs, and other business school/well-connected folks who have worked hard, but have worked up the ranks in their business through more entrepreneurial/less traditional routes.

From the people who worked up through those routes, many of the biggest personal issues I’ve encountered with running a business they take in stride (Dismissing people, handling hostile clients and doing blind sales.) Oddly though, many of the the pieces of running a business that I have little problem with, they have found difficult. So, naturally, I had a lot to learn from them. Even if, in the end, ethically I disagree with some of their methodologies or their philosophies behind their actions.

However, the conversation I had with my friend brought back to the forefront of my mind the biggest part of running a business (especially small business) to me. If I wanted to be sole contractor, making money simply by doing the development myself or providing high level security work, I would just go and work for a larger organization like IBM, CN Rail, Google or Amazon. I actually remember working for Car Accounting at CN Rail and loving it, and I have very fond memories of my days working as an IBM business consultant under the AERIS banner. I’d make a relatively stable income, and generally be pretty OK with it.

But, business is more than that to me. Never fully figured out why, but I really enjoy giving people the opportunity to work on projects they never thought they’d be able to work on and find ways to take the awesomeness from those and make it work to improve the ROI (or organizational processes) of our clientele. It was hard to reach considering some of the ups and downs I have had in hiring, but there is a deep pleasure in having faith in someone and having that faith fulfilled.

Giving a project to someone who really wants to do it and do an awesome job on it, and then seeing them create something beyond your wildest dreams. That’s a pretty awesome feeling. It’s the 1+1 = 3 phenomena. I, alone, could not accomplish this, and neither could they alone, but combined, through faith in each other, we are able to produce something more.

Now, business doesn’t run on faith. Business runs on product, profits and financial statements. So you need to have one other piece of the puzzle – trust that they person you employ to do this job will be able to not only do an awesome job, but stay on task enough to build a product that supports them and the larger organization moving forward.

I’ve always found, contrary to many of my more atheistic friends, faith is easy; trust is hard.

Especially when your trust is betrayed or, worse even, entirely proven baseless.

That leads to disorder, not only for the organization but also for yourself. You need to re-examine your core beliefs and try to find out why you had this trust and what you missed that showed how that trust would be betrayed. You need to restructure the organization (sometimes at heavy financial and personal cost) to prevent such a failure again (that is if the failure was something massive.)

And you need to find a way to move forward. As hard as it may be.

So, we return to my friend that I enjoyed a lovely dinner with last night. His organization has some serious issues that need to be sorted out. The dysfunction is so inherent that individuals who are clearly skilled and capable of doing the work are being dragged along by the chaotic maelstrom that happens when organizational trust is betrayed. Trust goes both ways, you see.

It’s possible if I read this 10 years ago, I’d scoff at it. However, now I know it’s immensely true. These structures in corporations, non-profits and other organizations exist to allow for products and progress to be made. When you as an employee have no trust or faith in your leaders to lead, you will betray their trust in you to do what you have been hired to do. In the end, you both get disorder. You are a miserable employee, and your employer is stuck trying to decide what to do to make the engine work again.

This doesn’t mean you should put up with hostile or toxic business environments, far from it. It means that if you are unhappy (for any reason) and you can walk away, you should do so. Don’t betray the trust of the people who put you there.

However, don`t also assume that the chaos and disorder around you is due to a bad strategy by those who are doing their best above you, and most importantly trust that what they are assigning you is not entirely without purpose and void.

Their job is to ensure their department does it’s job and, in the end, that the organizations continues to be successful and sustainable. Sometimes they fail, yes, but don’t aid them in that by failing to keep up to what they expect of you.

Otherwise you just in a self-fulfilling maelstrom and more and more will get caught until someone pulls the plug on everything.

KJR

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Programming languages + Petty battles

Arguing about programming languages feels to me at times like arguing about human languages. In many circumstances you need to choose one that is required and move beyond any idiosyncratic silliness that arises when it’s not “your favourite language.”

Honest, I love Lisp, you can do some pretty awesome stuff in it. But you also really don’t want to program Mediawiki in it or WordPress. At least, I don’t know of a good way to do that cleanly.

I don’t mind PHP and really don’t understand the PHP hatred I see all the time. PHP gives you a lot of leeway to build pretty good software which if you are wise is fairly maintainable. Facebook, WordPress, Mediawiki are all built on this solid framework.

I quite enjoy C and C++, but I never really see an opportunity to build a large project on it. It has so much power to do things rapidly when you do it right. Having developed encryption breaking code in it, code that sorted through hundreds of thousands of stock records rapidly, and even starting on a piece of software that worked as a foundation for producing certain types of websites rapidly. Yet, the time it takes to code correctly, combined with the rush-rush-rush nature of our society has made the cost per program for C code to be well above the going rate these days.

Ruby… Well, I have other issues with Ruby beyond the code, more the community. But I digress.

CL (RPG/400) honestly I used to love, tried to dive into again recently and realized I had forgotten almost all of it. Which will be a bit of a pain since I’m trying to redevelop a system to work within a Zend Framework (combined with immix) to integrate Medium to Large account systems in an effective manner with a web GUI. Hopefully that love will come back, but in the days of Google lookups for all of the other languages, CL still requires me digging through the massive tomes.

In the end though, the funnest part is seeing it all come together.

Nothing beats a Quantum Code Compiler for an NMR machine actually being used to spin atoms, or a decrypter breaking a system while it is still negotiating the keys, or even better, a mutual fund analysis tool giving pretty good predictions on ROI for the following year.

Just seeing production. That’s what matters.

if you want to go argue about programming languages go back to the elementary school yard and argue it there. The adults need to do real work.

KJR

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