Book Review: Wikinomics

Unfair as it is, to review a book like this and its predictions a few years after it is written, I do believe that the exercise does yield useful insights. Wikinomics by Don Tapscott, et al. is a well written and ambitious endeavor  that attempts to cover a lot of ground in recent trends.

They push the envelope in promoting a collaborative economics or Wikinomics. Wikinomics   goes beyond Web 2.0 and Open Source to paint a picture of an Utopia created by cooperation and trust among large corporations, governments and individuals.

The authors propose four principles for Wikinomics, openess, peering, sharing and global action. This new economy, they claim is born, from a perfect storm caused by the rise of Web 2.0, the coming of age of the Net generation and the breaking down of corporate borders on a large scale.

Peer production that evolved from software development, more precisely from Linux and Apache development and then in the making and maintaining of Wikipdia has now been embraced by global heavyweights like IBM. While the creators of Linux and Apache,  Torvald and Behlendorf did not directly benefit from their creations, IBM and all the numerous companies that embraced the Apache server stood to reap rewards, claim the authors.

Behlendorf, having made a name with Apache, went on to make CollabNet, a succesful company. Reading this part, I personally felt that the person or entity who comes up with an idea or product, in the Wikinomic environment must only look for a branding opportunity and cannot expect huge monetary rewards for their creation.

Wikinomics, the authors claim, creates a marketplace for finding solutions to needs and for finding needs for existing solutions. This thought is in fact prophetic. The XBMC media center was a solution for streaming media to the XBox (I wrote a detail article on this a few days ago.). XBMC and its new popular offspring, Boxee, with their numerous add-ons, have begun the process of proliferation of TV with the Internet.

Wikinomics will create prosumers, claim the authors. BMW and Lego Mindstorms are touted as examples of this trend. User innovation is one of the big promises of Web 2.0 and peering. While there has been some evidence of companies prospering from user innovation, I cannot believe that it is an approach that all corporations must consider.

The authors also propose a modern day Alexandria where one has access to all knowledge relevant to her or her chosen field. We are not there yet. (Web 3.0 will make this happen, with all the hype about contextual information that one may access, say the futurists today.)

The book proposes the rise of platforms as another Wikinomic side effect. Platforms according to Wikinomics, include Mashups and Open Apis.Interestingly the authors claim that Amazon is spearheading this trend with its search. This was not to be. Amazon's A9, Amazon's customized search,  today is History. There is no existing platform today, that can yet be touted as a roaring success.

Another effect of Wikinomics is global collaboration in manufacturing. Boeing and BMW are  examples of this type global plant floor, where suppliers, customers and all other stakeholders, play a significant role in the design of products. As the authors caution, the balancing act of guarding one's IP with the spirit of openness is a risky proposition that must be approached with caution.

The authors also speak of openness and sharing of information and ideas within the walls of a corporation.  Best Buy is one success story of this kind of 'Wiki Workplace' . The authors describe how, then CEO Brad Anderson, fostered innovation right from the bottom, by creating an intra-corporate social network where employees, irrespective of rank within the company can share ideas.

Interestingly, the latest Business week has an article singing the praises of Best Buy. The reasons for the company's success according to Business week are CEO Brian Dunn's efforts in fostering Best Buy teams that work with manufacturers like HP and Toshiba in  product   development and design, creating a 'digital playground' where customers can test out products and in experimenting in the selling of new products like electric vehicles and newer electronic products.

Best Buy attributes a lot of its success to its use of social media. Indeed, this is another Wikinomics prophecy that has turned out to be true. All in all, Wikinomics has proved to stand the test of time(about two years) in many of its predictions. This book is still a good addition to your bookshelf

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Book Review: Innovate like Edison

Sometimes, the best nuggets are found hidden in the bargain rack of your local Borders bookstore. That was exactly where I found this book, that for some reason, seems to have slipped the bestseller radar.

From the bestselling author Michael Gelb who produced 'How To Innovate like Leonardo Da Vinci' comes this hidden jewel. While one cannot become an Edison by reading a book, one can certainly learn from his mental framework that helped him create  his ingenious innovations. The book presents a coherent set of ideas that the reader can apply in  our times.

The authors Michael Gelb and Sarah Miller Caldicott have not got carried away in their hero worship of Edison. In the early chapters, they discuss Edison's follies, including his close association with Henry Ford, a racist and Edison's mistreatment of his first wife.

Nevertheless, there is much to learn from Edison's thought process. Edison epitomized the quintessential American dream as an entrepreneur, inventor, capitalist, employer and leader.

Edison's modus operandi is broken down into five core competencies. The first of them which the authors call Solution Centered Mindset, involves keeping one's goals in line with one's desires, being optimistic, constant learning and experimentation and cultivating objectivity. As is often said, 'Find a job you love, and you'll never have to work a single day in your life.'

The next competency is called Kaleidoscope thinking. The suggestions here are simple. Keep a notebook, generate unbiased ideas, observe patterns, draw your ideas on paper or on some other visual medium and exploring offbeat solutions.

Full spectrum Engagement, the next competency is all about living with seeming paradoxes. These include focus and relaxation, work and fun, sharing and protecting knowledge, complexity and simplicity, single and team activities.

Master mind collaboration, the forth competency is about strength in numbers, also called the wisdom of groups. Edison was a genius in his own right, but breaking the myth of the isolated genius, Edison collaborated extensively with others. He built teams with diverse individuals in them. His companies promoted open knowledge sharing and rewarded teamwork. Edison went out of the way to network and built extensive relationships. There realtionships  helped promote himself and his Edison brand.

The final competency is about creating 'Super Value'.  The authors suggest the following: 

• Link market trends with the competencies of your firm. 
  
• Tune into your customers. 
  

Edison's companies were known for their excellent service. The authors suggest applying the right business model and offer these choices

• Licensing technolgy to others and from others, 
• Franchising
• Licencing products to others internationally in order to customize your product in different markets and providing training for product use.

The authors discuss scaling products to service more customers and finally building one's brand using both quality and showmanship. 

This book is a valuable part of my library and belongs with the bestseller lists. Maybe, the authors did not follow their own advice in promoting their work.

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Book Review/Summary: How to become a marketing superstar -Concluded

Questions to Answer : Answer the following questions about the product on

-Market Segmentation

-advertising

-positioning

Product

-Why was it made?

-What is the raison d'etere for the product?

- What is your reasoning for selling it?

- Where can it be used?

Customer

Why does she buy it?

What need does it solve for her?

Selling strategy

-What benefit does it solve?

-Ask 'So what' for each benefit.(Derive benefits from features)

Quantitative:

How will the customer situation be improved?

Competition

What is customer using now? Why?

What are the disadvantages with the with current product?

How does your product compare with theirs?

How do you price to value?

Can you dollarize the returns on the product?

Who else is using product? Get details

What evidence have you got on product claims?

You must answer these questions. If you don't know the answers, find them.

Completely, objectively and correctly answer:

Why do customers buy your offering? Why do some choose otherwise?

Why do they buy from the competition?

What will it take for you/your competitor to get all the business?

Who are your customers' best suppliers? Why?

The answers can be hard to hear. Do not depend on the sales people to deliver honest answers.

Do not run from bad or unpleasant answers.

Get the answers from new or potential customers.

Compete for 'inches'.

Fight for every share.

Make one more call per week. Return every call. Send more ads to magazines. Never let up. Do not let victory be an inch away.

What can you do to reduce complaints, increase costs.

Archive and resurrect past promotions.

If it resonates with customers, reuse it.

Do not get strategy amnesia.

Old products and customers may mean new opportunities.

Repolish the silver.

Always sell inside first.

People are resistant to change. Sell to them and take away doubt.

You must convince them to do something new, different or do not want to do.

Resistance to new ways may be legitimate or imaginary. Some honest people may need new ideas.

Make presentations to get more acceptance.

Don't let perfect be the enemy of better.

If you are a little better than the competition, sell your product now.

Own a market, not a mill.

Factories or mills do not sell things.

Markets are the source of revenues.

Mills take money. Markets will make it.

Mills are hard to move.

Markets are fast to respond.

Markets make mills. Mills make what markets want.

Loss leaders are for loosers.

These are products that sell for a loss. The hypothesis is that the customer will buy another product instead of a loss leader. It is an excuse.

The larger the rebate, the more the customers who will collect it.

Never run a 3 page spread ad.

It is burning money.

It costs as much to run good advertising as it does to bad advertising

Shrink to Grow.

Shrinking sales can spur growth. Shrink the territory to grow.

Shrink market segments into new niches.

Throw appeals at the customer seeking to overwhelm.

Never let up. Always communicate, sell.

Dominate the customer's consciousness.

Your competition is lurking around you. Be aware of this. Do not underestimate the competition. Keep customers happy all the time. They are your first line of defence against the competition.

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Book Review/Summary: How to become a marketing superstar -II

•  Advertise and sell with figures, not adjectives(less, more, economical).-Use facts and data
  
• Get samples of all advertising tools used now- Everything a customer might see- Are they consistent? This fosters brand awareness.
• You should change. Once you change, change everything to reflect that change.
• Be a customer of yourself- Read the advertising- Is it clear. Call the 800 number- How is the customer service?

-Read customer complaints.
-Read your billboards on the move
-Fill warranty claims
-Return the product

• Fix or improve the issues you face.
• Banish all buying barriers: Do not torment your customer with warnings.

-Review and revamp your policies.

-Have enough change as possible in the register.

• Fast 15 Rules

-Teaser ads are worthless. Get to the point

-Coming soon ads are announcements. They are OK

-Channels are not customers

-Know the products that sell

-There is a cost to cost cutting.

-Selling is God, not the sales force.

-Ads that don't sell are a waste of money

- The end of a sales transaction is most memorable to a customer.

- Get the customer to invest in the sales process.

- Have a quantifiable selling options

- Remember customer names 

• Superstars favor recessions

-This is a time to get new customers

-Hire new talent

-Get rid of under-performers

-Partner with customers to launch products.

-Be relentless.

-Adopt a 'thrival' attitude.

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Book Review/Summary: How to become a marketing superstar -I

One of the few drawbacks of the SDM program at MIT, that I was lucky enough to graduate from, is that we do not have a course in Marketing. So here is one of the books I recommend to
to fill this void.

Jeffrey Fox's book, How to become a marketing superstar has a concise and clear marketing message.
Here are my notes from th book:

The old notion that 50% of advertising is wasted and that no one knows which 50% is a myth.The effectiveness of advertising and marketing is measurable.

• Getting and keeping customers is everyone' job, regardless of title or job description.
• 'The definition of marketing is simple, the doing or marketing is hard.'
• Successful companies do what the top guys do. They sell,sell, sell.
• All money in an organization is 'customer money'.
• Customers fire employees everyday.
• Each employee and department must generate more than they consume. Otherwise, they will be eliminated.
• Divide your customers into OK and not OK. Infact there are four groups: Sophisticated OK, sophisticated not OK, unsophisticated OK and unsophisticated not OK. This is subjective division from the marketer's
  
• Sophisticated OK: Big companies, low margins
• Sophisticated not OK: A big risk, can cause employee burnout
• Unsophisticated OK: Low Margins, They may bear the price for training, extras
  
• Unsophisticated not OK: Avoid this entirely
• Then decide on selling, service,billing plans
• Love the OK customers.
• The customer is not always right. The right customer is always right. She is profitable, pays her bills and pays for what she buys. They can be fair, tough, needy, insistent or give good referrals if they satisfy the OK rule
• The bad customer is not OK. They may not be profitable.
• The seven growth levers:
• Innovate
• Add new end customers in new markets, new geographies
• Sell new applications of existing products to existing customers
• Identify and reduce customer attrition
• Raise prizes.
• Pray for market demand
• Acquire companies
• Delegate people or resources to these levers.
• Have a growth notebook. Test and execute ideas
• Love you brand. Believe and understand your brand. Protect your brand from misuse.
  
• Live the brand.
• Managing the brand is different. This is minding, managing and administrating and can take your brand downhill.
• Hating your brand can spell its doom.
• Dollarization: The calculation of the value of a product. It is not abstract. It is a number. Value proposition, value chain are meaningless without dollarization.
• Dollarization must be based on:
• Go/no go on products.
• Market segmentation
• Product positioning
• Setting price to value
• Let customers understand the payback and the ROI on the product.
• Superstars sell within to suppliers, distributes, colleagues, advertisers
  
• They are polite, persistent, honest.
• They work long and hard.
• Price to value
• Customers do not buy products. They buy value based on need,
• Price based on the value received from the customer, not your production costs.
• Do not mirror your competitor pricing.
• Target gross market pricing, a common approach is not the right strategy though competition can force it sometime.
• Pricing requires customer knowledge, dollarization value and courage.
• Price cutting causes price wars. They kill or maim you and the competition.
• Improving price increases operating income.
• Compete on product quality, store location and employee attitude, not on price.
• Always tell you customer the consequences to not buying your product. It is a great motivator to buy. This is more effective than telling the customer what he will save.
  
• Derived Demand: Unlike direct demand, the product is a component of another product that is used for resale.
  
• Direct demand can be enhanced by advertising. The number of consumers determine the effectiveness of direct demand.
• When a derived demand customer cuts price, they do not influence the customer and have thus made a bad decision.
• Supermarketer must-knows:
• Having a customer
• Customers buy to gain pleasure and avoid pain
• People buy value, not products
• Dollarize value and benefits
• Who, what and why
• Group the customers as aware users, aware non users and unawares,
• Quality, directing R&N and sales are marketing responsibilities
• Train sales force to pre-plan, ask questions and to respond to questions.
• On all sales calls, ask for an order.
• Execution, execution and execution.
• Brandnames are intellectual assets
• Every product is branded. Use customer tested brandnames.
  
• Technology does not sell itself. Marketing does.
• Brandnames:
  
• Must be developed. Do not use company jargons or internal numbers.
• Do not use the product category or initials as brandnames.
• Brandnaming is not a popularity contest.
• Brandnames on product characteristics is good.
• They do not have to have meaning
• Brandnames must be memorable, easy to pronounce.
• Wrong words can use trigger negative feelings or distaste or confusing.
• A good brandname cannot sell a product.
• Always put a brandname in the headline. It is the hero.
• Turn brandnames into stars.
• Never use I,me, we, us, our. Customers care only about themselves, not you.
• Build brand awareness. Not 'we' awareness.
• Articulate the difference. For this, you must research the product. Use numbers and facts.
• Never use bad words in advertising and selling:
  
• We,me, I, us, Our,- Use the company name
  
• Solutions- State the solution
• Quality - This is defined by the customer
• It- State what 'it' is.
• Technology- There is no high tech, only old and new.
• Lifetime
  
• Source- State the source.
• Difference

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Book Review: Supercrunchers by Ian Ayres

In Blink, Gladwell presented a view that in order to make an effective decision an expert’s decision is far better than market studies and statistical analysis. Supercrunchers by Ian Ayres is the perfect antithesis to this view.

Ayres opens Supercrunchers with two anecdotes, one where an expert statistician outperforms wine tasting gurus as to the price of wine for several years. The other story is of a statistician who outperformed experienced talent scouts when it came to pick rookie baseball hitters.

He goes on to talk about regression and its superiority over expert opinions in predicting future outcomes. Unlike expert opinions regression also predicts the accuracy of the outcomes it predicts.The book transplants the reader into a magical world of large quantities of data(Terra bytes and Peta Bytes).

Here are some of his examples of companies using regression.
Farecast is a site used to predict when to buy an airline ticket.
EHarmony is one of many sites used to match singles based on several compatibility criteria.
Google works though petabytes of data and has an ambitious plan to scan every book ever published and offer search functionality on them.
A casino uses regression based on its customers’ profiles to determine the pain-point for its customers. When a customer reaches this point, an employee comes to the aid to the customer and pulls him or her away from the slot machines aby offering perks. The result is that the visit to the casino a pleasurable experience for the customer and will make him or her come back to play again.
Statistics can also be used to predict how a judge may vote based on a certain case.
Credit card companies use spending patterns to predict the stability of marriages.
The IRS holds so much information on us. This information could be used by the population for beneficial purposes.


He tries to make a case for EBM or evidence based medicine where a doctor can use statistical data to make decisions on patients instead of mere theory he or she learnt in med school.

He also believes that Hollywood could use analysis to predict the probability that a movie will be a hit, long before a single scene is shot. The analysis is made purely on the screenplay.

Ayres also talks about the use of Neural Networks for evidence based medicine. Neural Networks unlike regression cannot predict the accuracy of their decisions.

In the last part of the book, Ayres tries to win votes for his theories by showing the user the value of standard deviations and how they can be used in decision making. He also describes Bayes’ Theorem in great detail reminding me of the ERBA(Enterprise Risk Benefit Analysis) class I took at MIT.

I loved this book and think it, like Blink must be required reading for the SDM program as it offers another perspective on decision making, this time in favor of decision making techniques taught at MIT. Big surprise, as the author is a PhD from MIT. Reading this book was time well spent. The best part of this book is that it is only 217 pages long, though its content at times was a bit ‘heavy’.

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Book Review: The Tipping Point

‘Riveting’ is not a word usually used by a reviewer to describe non-fiction. However, it precisely describes how I feel about Malcolm Gladwell’s Tipping point. Brilliant anecdotes and food for thought make this book a lucid read. I know this book was out in 2002 but it slipped my radar until very recently.

What causes the tipping point for something to break the thresholds and multiply exponentially, not over a period of time but in one short burst?What do the following things have in common? An unstoppable disease that ravages a population, a TV program that glues millions of kids to the screen or a sudden decline in crime in a large city?

All of these examples, argues the author have some common factors: A few individuals or entities with certain traits, a factor that enables the spread to persist which the author calls the stickiness factor and finally a context for the spread to survive.

Critics of the book argue that this book does not have the ‘how-to’ factor. It does not tell you how to spread or stop the spread of a phenomenon but offers a mental pattern that one may be able to adapt to his situation (or context). This book makes no claim to be a business book and must not be interpreted as one. I have little doubt however, that a smart individual could use the patterns here to promote a product or service.


The Law of the Few


The individuals or entities who spread the word or disease , Gladwell postulates are few in number and fall into three categories. There are the connectors who are in touch with a lot of people but may be close to few. Gladwell insists that the famous six degrees of separation theory is made possible, thanks to some of these well connected people.

He categorizes another group of people as Mavens. These are the dynamic knowledge banks who are ready and willing to spread a phenomenon for no real monetary gain. Finally, to spread the phenomenon on a large scale, one needs efficient salespeople.


The Stickiness Factor


Gladwell explains the stickiness factor in great detail. He uses two children’s TV shows to make his point, Sesame Street and Blues Clues. While Sesame street banked on the short attention span of its young audience to break its show into disconnected segments. Blues Clues used the opposite strategy using a single story line narrated by its host and both were phenomenal successes in their times. I love the way Gladwell disects the motivations behind these shows to make his point.

The Power of Context

Next he explains what he means by the power of context. Wayne Dyer once quoted someone’s great saying that circumstances do not create men, they reveal them. However, Gladwell argues that quite the opposite is true. A person’s reaction to any situation will be determined by his environment and not his intrinsic personality. This means that by simply cleaning up the graffiti on the walls in your neighborhood, you could make it gang free in no time.

The book features numerous case studies and examples to illustrate Gladewell’s framework. This is one of the most informative books I have read in a while.

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The World is Flat - 2

3 .Open Sourcing: The rise of Apache as a competitor for IBM, Microsoft and other web servers marked the beginning of the Open Source movement. The motivation for Open Source comes for a variety of reasons including creating something that does not exist in the market place or to get credit for going toe to toe with the big guys. The genesis of OS can be traced back to academia. Academics were the earliest pioneers of collaborating and sharing information.

Then came along CVS and then Apache. IBM built Websphere on top of Apache.

Today about 66% on all websites use Apache.
4. Outsourcing Y2K: Modern India did one thing well. It educated a large percent of its elite in Science and Technology. The US got to buy India's brainpower. In the late 90s India's fortunes grew due to development of Fiber Optics and the Y2K problems. It strengthened relationships between India and the US.

5.Y2k was followed by a boom in eCommerce. The dot com bust helped India gain more employment for its educated engineers.IT companies in the US had to find cheaper labor in India.

6. Offshoring: China was now playing in the same field as other economic powers. By joining the WTO, China was moving quickly. Offshoring is different from outsourcing. It involves porting an entire factory to another place. Offshoring to China meant lesser costs for organizations. This also meant that foreign companies could sell to anyone, anywhere in China. China could produce workers of varying skill levels and has become the most popular place to offshore companies.

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Book Summary The World is Flat-1

Friedman's book opens in a golf course in Bangalore, where a deluge of multinational brand names permeate every part of the surroundings. The thesis of this book is that technological development has enabled countries like India to compete with developed countries for IT work at an equal footing.Outsourcing has moved from IT work and call centers to other fields like accounting, tax preparation. Thanks to technology, privacy of the customer is protected from the ousourcee.Anything which can be moved around will be moved around. eg: Outsourcing, Jet Blue's Home sourcing to housewives in Utah.The 10 forces that flatten the worldThe fall of the Berlin wall in Dec. 1989: This marked the victory of free markets. It unlocked the creativity drive of India, China and allowed for 'best practices. Improved communication forced the flow on information even into and from the iron curtain.Netscape files IPO in Aug. 1989: Browser technology is one of the most important technology advances in modern History. It enabled sharing files in ways never done before. Anyone could shared files and information across the internet. Internet technologies work together to allow interoperability and knowledge sharing. The public now wanted a single network and applications that competed once someone was on the internet. However, with Microsoft's tactics, Netscape was sold to AOL for a song($10M). We then saw the rise and fall of the Internet bubble. It led to the fiber optics bubble where small players fought giant telecom companies and built infrastructure. The law of large numbers took hold and long distance rates fell ten fold.
Work flow Software: Teams with members in disparate physical locations could now coordinate and collaborate on joint projects, design, selling and service activities. New software programs could now optimize the use of powerful computers and put them to work beyond email and browers. This led to the development of Web Services and communication between programs. Workflow programs showed up in manufacturing, household accounting and movie making. Work could be divided and sent to varied people in varied locations. This needed common standards to exchange information. We see standards around payrolls, supply chains and ecommerce to allow seamless integration between software programs.

• 
  

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Book Summary:How life imitates Chess-concluded

How life Imitates Chess By Gary Kasparov

• Only a leader can see around can see around the corner.
• While innovation is risky, not innovating is riskier and one must make a transition from imitator or innovator. The Japanese did this with American goods. The Koreans and Taiwanese are doing the same to Japanese

The Will to Attack.

• All skills and preparations are useless without the gut to attack. Be prepared to strike first. The first strike is more artistry and guesswork than skill. There is no indicator for the time to attack. At this time, one must ignore assumptions, underestimation and overestimation of the opponent.
• It is worse to ignore an opportunity than to make a bad move.

Question Success

• Success is often an enemy of future success. Satisfaction can destroy vision of the future.
• Winning deludes one that things are going well. We do not ponder when we win.
  
• We must train to do better even when we win.

Competition and Complacency

• Constant reinvention is a must in all industry.
• Playing your own best game without regard to your opponent's strategy can be disastrous.
• We perform our best in the midst of competition.
  
• Seek out the best competition for you.
• Benchmarks are essential for us to maintain our high standards.
• Nurture your inherent advantages but be open to new techniques.
• "Before you can fight, you must know what you are fighting for."

In favor of Contradiction

• No one enjoys being contradicted. A leader who is open to success can achieve dramatic success.
• You learn more from losses from better opponents than from any results gained from opponents who play at your level.
• "You must find the balance between competition and correction"
• "Loose as much as you can take it."
• Invite criticism and evaluate your techniques. They could lead to dramatic improvements in your game.

The inner game

• Results can sometimes be a foregone conclusion.
• Getting back on your feet after a devastation is not easy. However, the successful come back with renewed wisdom and motivation.
• Winning requires a strong psychology.
• Nervous energy can be ammunition before a battle.
• Creative energy can be felt even by your opponent.
• Mental muscles wear out from lack of use. It is time to worry when things seem too easy for a while.
• Defeat can also lead to more defeat. The metal game is at work here again.
• It makes no sense in believing that failure now will lead to success later.
• We must focus on results and sometimes abandon our blind beliefs.
• Question your approach and abandon your ego when necessary.
• Only in an ideal world will you get what you are entitled to. When you belive you are entitled to get something you may be closer to loosing it.
• Results come down to the best moves and decisions.
• Decision build on our personality.
• The inner game is the game.

Man vs. Machine

• Machines are free of prejudices and preconceptions.
• Computers make linear decisions and do not 'think' long term. This was true until Deeper Blue defeated Kasparov.
  
• How it did so is a controversial subject Kasparov covers at length.
• In advanced chess, using a computer can be invaluable in analyzing a player's mindset throughout the game.
• It is better to stretch ourselves out of our comfort zones. We grow when we nervously push ourselves beyond our presupposed limits.
• We may be able to get better at what we do by getting better at things we do not do.
• "Experience is not what happens to a man, but what a man does with what happens to him."
• Intuition is a byproduct of our experience. Even the vaguest of hunches is based on knowledge from the past.
• Sometimes more time and more technology can diminish our intuitions. If you want to succeed, you must brave the risk of failure.
• Intuition tells us what, when and how.
  
• Intuition tells us when the law of diminishing returns begins to activate.

Spotting Trends

• Nobody knows for sure when a change is a trend and it is usually too late.
• It is worthwhile to look to the past to do trend spotting.
• What makes a trend new? What makes it different from the last time?

One Single Moment

• It is harder to find out if there is a problem than to solve a given problem.
• Knowing a solution is at hand is an advantage.
• In a multiple choice exam, the most intimidating answer is "None of the above".
• Crisis and moments of conflict can create opportunities.
• In the midst of pressure, it is hardest to maintain it. the temptation to make a decision is strong.

End Game

• Kasparov resigned from playing Chess. He moved on to writing and politics, choosing to look for new challenges.
• The Kremlin is now closer to dictatorship, says Kasparov.
• He goes onto say that, if left unchecked, the regime could let Russia degenerate into a military state.
• On the other hand, if Putin's regime disintegrates, it could lead to total chaos.
• WE HAVE TO BE WELL PREPARED, EVEN FOR VICTORY.
  

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How life imitates chess -Part 4

How life Imitates Chess By Gary Kasparov

"Try out new ideas in your own creative space."
Surprise is hard to pull off but extremely effective.

Art is the offspring of creative conflict. The opening creates the launching pad. The takeoff happens in the middle game. Be open to new happenings all the time. Your previous strategy may not work now. Formulate a new plan.

SWOT stands for strengths, weaknesses, opportunity and threats. You must be open to new moves or adjust to your new threats. The middle game is the most open to art. "Disaster lurks at every corner." This is the time when action is rewarded. It needs quick thinking. One must find similarities to the past, what worked then and what failed then.

In the middle game, after an organization has launched its product, it must focus on advertising and pricing. It must improve on the foundation built in the previous stage, the opening. This is why one must study the whole game, not just the opening.

"A good peace follows a good war." The end game begins when the potential of the players is gone and only a few survivors still prevail. The plans and possibilities are known and usually goes predictable.

However the fallibility of human nature still leaves room for more moves. Sometimes a wrong move in the end game can cause a tragic consequence. The end game and its lack of action leads to ennui and thus open to error. Instincts often cause creativity to diminish. Existing problems must now be seen with fresh eyes.

Eliminating Phase Bias: There is always room for improvement. Find out your strengths: Preparation, fluid action ...? You must find the weaknesses and eliminate them from your game.

"Do not bring a knife to a gunfight." What worked in the middle game may not work in the end game. Do not under estimate dynamic factors. A smart player takes all three factors into account. The transitions between them must be smooth.

The attacker's advantage
"Even a bullet fears the brave" - Russian saying.
Recognizing known problems sometimes stifles creativity. With the mamouth decisions we are faced with daily, small improvements can lead to large payoffs. Decisions are often unpredictable. We must look at alternatives that can help us face challenges.

Sometimes if there is no immediate benefit to making an immediate decision, postpone it. Err on the side of your instinct and optimism. One way is to be proactive which puts the healthy pressure on you.


There is a double standard. A person who attacks is often considered aggressive and the bad guy. An attacking move by a CEO is aggressive but from an employee it is seen as assertive. Aggressiveness can be an asset.

We must ensure we are hard on ourselves, our environment and others. There is a controlled way of aggression that helps us improve. When you attack, your opponent's moves become more reactive and thus more predictable. Maintaining threats and pressure enables one to hold the initiative.

Once you have taken this undertaking to attack, you must fuel it constantly. Either one must attack with one giant attack or squeeze slowly. If you attack in only one place, you become vulnerable when it is your turn to attack. One weakness alone is inadequate to cause defeat.

A threat can have payoffs even before fruition. "Buy the rumor, sell the news" is a Wall Street saying.

Sometimes some patience is better than an uncertain attack. While staying on the attack, one must avoid over thinking but with more controlled decision making.

"What you can do or think you can do, being it, for boldness has power and magic in it." In war situations, defensiveness is almost obsolete today. "Static defense is dead"

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Book Summary: Follow this path-part 1

Follow this path
Most companies innovate, create a great product, make high margins and finally when the competition catches on, see profits and margins fall to nil. We saw it with the telephone industry. the computer industry.

Demmings and Duran showed how we could reduce manufacturing costs. This was followed by a wave of reengineering. While we reduce costs how can we raise margins?
Sooner or later companies make ethical compromises.

We cannot build empires on price. We are simply a commodity then. We must have a relationship with customers that overrides price while maintaining our integrity.

Success of organizations is most dependent on its understanding of psychology. How individuals and customers view the organization is most important. Human nature is the most important trait that we must manage.

Great organizations hone the winning traits of their employees in connecting with their customers. This is the only area today that can be improved upon significantly in most firms.

Employers held power in years past. Working harder meant more productivity.Monopolies were the winners. Loyalty was a given.

Today people change firms and jobs. Diversification is a necessity. TV coverage has increased business news. Customers have more choices today. Deregulation is the norm. The competition is worldwide for most organizations. Image and income are both vital today.

A reliable customer base is oxygen for an organization. Great firms can chart a map through the 'customer maze'. The best employees in these firms can do what they are good at. As a result profit and growth flourish. These employees are said to be emotionally engaged employees.

Organizations treat employees and customers as emotional beings. They had a way to utilize employees and engage customers.


Emotions are among the least understood facets organizations today. Employee traits and behaviors are hidden messages about the talents they possess. Most organizatios overlook these traits as they are too complex.

People are stereotyped and conventional wisdom says that all must be treated the same and that all employees and customers must be treated the same way. Most managers do not know how to describe these issues and don't bother understanding them.

The soft side of human nature is gaining attention, particularly in the financial community. References to 'Human capital' are increasing. Organizations are trying to find the role of human nature in shaping outcomes.



Genetics and environment shaped the neural pathways in our minds. They give each of us our own way of reacting to the world. They are the basis of our talents. Talents and engagement are emotionally driven. They are our only competitive advantages.



Emotions determine what customers respond to. They are least understood by organizations. However, organizations bring forth brands products and technology to appeal to the emotions. The most powerful transmitters of emotions are the human visage and voice. Every human interaction either raise or diminish emotions.



Emotions are specific and consistent responses to physiological stimuli. It happens instantaneously and cannot be controlled volantarily. They can overide reasons.



Grades and training are not the only indicators for the right job. Organizations look for human nature. They look "inward instead of forward". Engagement of employees create sustained growth. Emotions work outside the rational path.



Discover the talents of Each Employee

Find out what makes them tick. Some people are not cut out for certain tasks. Despite great efforts, they never get proficient at those tasks. The more they try, the more they erode customer relations.



Managers erroneously assume that all successful employees have similar work habits, that these habits can be and should be learned. Most companies look at resumes while hiring and overlook the person and her traits that may or may not suite the role. Many are not put in the job they were hired for, in the first place. Training for employees is only given to address weaknesses, not to bolster strenths. It is only a way to standarize information. Giving a person a promotion to a role she is unsuited for is another mis-step in most organizations.





Individuals do things the way they are wired. Organizations cannot change the way these individuals process their environment. Great organizations differentiate between knowledge, skills and talent. Knowledge is either factual or gained from experience. Skills are the how-to aspects of jobs. Talent is the facet that brings about superior performance.

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How life imitates chess -Part 3

How life Imitates Chess By Gary Kasparov

All change comes at a cost. Coordination of resources becomes increasingly difficult with more assets. Kasparov uses the AOL-Time Warner merger example to illustrate this. Sometimes the combined power of many resources is greater than the sum of its parts.

When resources work together, they become more productive without loosing productivity. Sometimes, to meet a certain objective, one may add resources and hasten defeat. When in trouble one must never gamble on a risky venture or in overextending herself.

While risk taking is essential in every field, what is critical is the context of that risk. In Norman Mailer's words, we are either living a little more or dying a little. There is simply no standing still.

Phases of the game
We can know only where we are going by knowing where we are. Kasparov stresses on grounding in the present. Chess can be broken into three phases, opening, the middle and end games.

In the first phase the battle lines are drawn. It is the hardest part of the game. One must determine the 'opening' in this part or the one move that predetermines the next set of moves. An opening that worked for an expert may not work for you. Memorization of moves is often useless in a competitive situation. If you follow an expert's move, know the motive behind the move. Memorization always inhibits your evolution as a player. Opening sets the stage for the type of middle game you want.

Creativity on opening is best cultivated at home rather than at showtime. This is the only opportunity for creativity.

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How life imitates chess -Part 2

How life Imitates Chess By Gary Kasparov

Besides knowing what to look for, one most evaluate all factors pertaining to the situation.

MTQ(Material, Time and Quality) Chess is an art of balancing all three of these factors. One has to make make trade offs between available resources, time and quality. Decision making is error prone but gets better with active thoughts. Become aware of poor choices and move beyond them.

All decisions improve with a better process. One thinks strategically with MTQ). Usually beginners tend to gobble up their opponent's material. One must know the actual value of the material one gathers. This is not easy. Your emotions(prejudices and preferences) about some material can cloud their actual value from you.

Time is money. You are payed labor for your time. You have only so much time to make a move or complete a series of moves to meet a certain objective. One must use both these concepts of time to his advantage.

The one who makes the first move acts, while the other reacts. Moving quickly and cutting corners does not always buy time. The champions know to make tradeoffs between time and material. When attacking time is more important than material. One must be careful not to go after material gain when it affects a winning strategy. Kasparov usually chooses dynamic factors over static factors.

Quality: Each of your material processions have an intrinsic value. They can tell who is ahead at a point in time. At different times materials fluctuate in value. The strategist seeks placement of his resources. A piece can loose its value. In such cases, you can trade it for another piece you increase your footing. Note that this is not true in some cases like in stocks.

The concept of Never: A piece that has been trapped has lost its value.

Double Edged Evaluation:
Count the resources first and then look at placement and territory. (Reminiscent of 'Art of War'). Structure is a double edge sword. It comes into effect when you are evenly matched. This is where one must detect the minutia. The devil is in the details.

Personal Return on Investment;
For education, we invest time and quality to gain an advantage with skills and contacts. The questions we must ask are beyond trade offs. One may gain or loose it all.

MTQ at Home: We make MTQ tradeoffs while buying homes. Location, Location Location. Great players recognize the exceptions. The details are hard to remember and thus can be burdensome later. Balance, exchange and evaluate over and over. Use time for improving material. Quality is the promise of time and material well used.

Exchanges and Imbalances

When there is an imbalance of symmetry, we can it to our advantage. Most of us take our best guess and move forward, without consideration of all options. All elements combine to form a single big picture. The number of ways to consider all moves is only limited by our prejudices.

The search for compensation
Every move has positive and negative aspects. Material losses are the only negative losses though they may be beneficial in the long run.One must total the pluses and minuses to evaluate our position. We can turn material into time or vice versa.

In thermodynamics, energy is indestructible. It can only change form. In chess, we can grow stronger with more than one queen and so on. Firms can do this too.

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Book Summary: How Life Immitates Chess-Part I

How life Imitates Chess By Gary Kasparov

Kasparov became the youngest Chess champion at 22. Today after quitting Chess, he is a politician. He presents what he calls the lessons he has learnt from the world’s ‘greatest game’.

Chess is ideal for decision making as it involves quick decisions amid pressure from your opponent. It requires calculation, creativity and a desire to win. There is also memorization, precise calculation and logic.

Success comes from a synthesis of all of the above where the whole is greater than the sum of the parts. A CEO must combine analysis and creativity to come up with solutions to her problems. Unlike the real world, your moves on a chessboard are limited, but it still provides a model for decision making.

The key is to seek out and find your path. As a child, Gary listened to tales of voyages. In chess, Gary decided to seek out territories no one had seen before. To traverse our path, we need a map. A map informs us about the known and the uncharted territories of our minds, our strengths and weaknesses and the unknown. We must find our own.

Anyone can learn the rules of chess. We must dig deeper learning to recognize patterns and their inherent logic. With time, knowledge, talent and experience all come together. This triumvirate becomes our ever improving intuition and blends with our psychology and then becomes our style. Our style is our individuality
What are our strengths? Weaknesses and what challenges do we seek and why? These are questions that we must ask ourselves.

“Better decision making cannot be taught, but they can be self-taught” .
Be conscious of your decision making methodology. This is vital for us to correct our maladies and improve what we do well.

We must see the big picture and deal with crisis in our lives. We must be able to make effective choices when we meet a fork in the road. The way to do this is to seek out challenges, and exploit our gifts.

For this we need to develop our blue prints and have the ability to trust our instincts and realize that we are stronger despite any external results.

The Lesson
Kasperov was faced with elimination in 1984 when he was up against a champion, Karpov. He decided to prepare for a long war, rather than giving in to desperation. Switching to Guerilla warfare, he took fewer risks.

Karpov changed his strategy to make a clean sweep, a plan that went south. Kasperov learnt of Karpov’s thinking strategy and his own. However, he lost the next game and was one game away from elimination.
Kasperov won the next and kept going. In the fifth month of the series, Kasperov won game 47. He won the next game and in 1985, the match was postponed for 5 months. Kasperov said that the world champion had been his personal coach. He also understood his own play. When the match resumed, Kasperov won his first game and was now a veteran and went on to become the champion for the next 15 years.

The marathon with Karpov taught Kasperov valuable lessons. Talent and hard work are inadequate. One must develop self-awareness to operate at your peak. Life like chess is neither a trivial pursuit nor an exercise left only to geniuses. At the heart of the game is strategy

Strategy

If you knew all the rule of chess without knowing a checkmate, you would know tactics but will not have a strategy. Strategy is based on long term goals. Tactics are more concrete and based on immediacy.

Sun Tsu said that strategy without tactics is the slowest rout to victory. Tactics without strategy is the noise before defeat. Playing without long term goals makes your play reactive and soon you’ll be playing your opponent’s game. The 1992 election saw Clinton attacked with a series of scandals. His strategists responded to each of them but also had a message of their own. The strategist looks to a favorable outcome in the distant future and makes effective moves for them now. Asking ‘Why’ turns’ tactics into strategy. It separates visionaries from functionaries. Every move has a consequence.

Tactics involve speed, but are almost trivial compared to strategy. They are forced responses, if then statements. They can become complex and error prone if they are many. For every move you need to see you opponent’s response. At any great opportunity, you must be able to throw tactics away and seize the given opportunity.

Play your own game

Know your strengths and weaknesses, but use your own style. This strategy helps one adapt. Different individuals have their own style. Even when Kasparov is on the defensive, he looks for an opening to attack, his real strength and while on the offensive, looks for a better way to attack.

You cannot always predict your battlefield. This is where your adaptability comes in. It does not pay to be a laager or a leader in planning your tactics. Britannica Encyclopedia made a tactical error in delaying their move to CD Rom media. The dotcom era is an example of many who tried to go on hunches about unpredictable markets.

Sometimes loosing can force you to change a good strategy while small victories could make you blind to potential disasters. Only a major shift in the landscape should force one to reevaluate her fundamentals. We must walk the fine line between flexibility and consistency.
Sometimes your personal style may be at odds to the strategy needed to win. This is when you must change your strategy. This is where the power of why comes in. Avoid change for the sake of change.

Do not watch the competition more than you watch yourself. The competition can trick you away from a working strategy with diversionary tactic. Chess between two people can be a zero sum game but in a tournament, happenings in other tables could affect you.

There is a balance between knowing what your competition is up to and to be aware of things within your control.

Once you have your strategy on paper, we stay on track with rigorous questions of our results. With each success, changing becomes even harder. Sometimes, the teacher must learn from the students. Believe in your plans but ensure your plans are worthy of your beliefs. This takes constant practice. Strong tactics need strong strategy and great calculation. Both need a look into the future.

Strategy and Tactics together


“Tactics is knowing what to do when there is something to do. Strategy is knowing what to do when there is nothing to do” There are times to wait. These are called positional plays in chess. It is important that one takes small steps in such cases but never stops thinking. Many times this may be at many points. In life, there is no real urgency in such situations and one is likely to develop unhealthy habits like TV or business as usual.

Element of Surprise
Sometimes your opponent may read your moves. In such cases, change your game. This will lay to waste your opponent’s planning.

A genius for Development: -You must have a well developed position before going for attack. Morphi, the first American Chess hero used this strategy.

Sticking with a plan:
With the growth of modern technology, chess moves can be dissected and analyzed almost instantaneously. This makes it hard to have the element of surprise. In a game of rapid chess, many are likely to abandon their guiding strategy. Experience has showed Kasparov that the most successful players stick to a plan. Trusting yourself means sticking to your plan and trusting your instinct.

Confidence and the Time Factor
When we postpone decisions because of uncertainty we often give into the vicious cycle of anxiety and time pressure. The enemy of the strategist is the clock. It forces us to make emotional moves. Intuition can fail one in such cases. The best plans devious tactics can fail in the absence of confidence.
Churchill said that courage was the most important of the human qualities, as it guarantees all others.

Your next Move

It is impossible to predict how many moves ahead one sees in advance. The possibilities are too numerous to reduce chess to arithmetic. As one looks at counter moves, the branches of the decision tree grow exponentially.

The further ahead one looks, the more likely he is to miscalculate. An elite player does not see much further ahead than most good players. A computer sees much further ahead, but cannot judge the best move possible. This is where computers falter.

When Kasparov starts off, he does not see a decision tree but all the objectives like king safety and material strategy. This lets him plan intermediate steps and only when the smaller objectives are met can he focus on the larger goal. Switching moves abruptly can cause confusion and is an undue risk. You must also know when to stop.

Imagination, Calculation and His First game
You must be aware of trends and patterns in your analysis. Sometimes imagination can help compensate for a lack of deduction. One can foresee many moves in advance in her imagination.

Talent
Talent is the least understood of human advantages. Even the most extraordinary talents need the opportunities to develop. Kasparov’s father recognized his son’s talents for chess. Chess came to Kasparov easily.

Patterns in our lives
Talents are attributes not switches. To excel in chess, one needs innate talent and acquired knowledge Memory and Fantasy.). Some have great memories, but it is a myth that chess players have great memories. They have what Kasparov calls ‘Chess memory’. A chess player does not recall all calculations from scratch. They find parallels and apply their knowledge of analogous positions.

To solve a problem they do not start from scratch. They look to a past pattern. Traders see trends in stock movement. Parents see behavior in their children’s behavior. Experience and memory blend this together. Review your performance at the end of each day. What lessons can you take away into tomorrow? Push the boundaries and widen the angles of your lens of the world. Dream big!

It is hard for a human to be objective. Fantasy can cut through fog. Sometimes calculation alone cannot sort problems.



The habit of Imagination

Imagination helps being innovative all the time. Thinking outside the box can come as a surprise to your opponent.

“Fantasy must be backed up by sober evaluation and calculation. Otherwise you end up making beautiful blunders.”

“Too often we often brush off outlandish ideas and solutions.
Failing to think creatively is as much self-imposed as it is imposed by the parameters of our jobs and our lives… What if often leads to why not.”

The more you experiment, the more chances you will have for success.”

Preparation
“Talent undiscovered may as well not exist.”
“Why is the capacity for hard work not considered an innate gift?” Michael Jordan was the first to arrive at practice and the last to leave.

Results are what matter.
In addition to preparation, Kasparov credits the discipline instilled on him by his parents and coaches. Kasparov admits that he was one of the premier users of machine analysis and databases to improve his game. He focused on results and claims his methods may not work for everyone.

While others criticize your winning ways, you must be careful to see if you are getting your just dues.

Preparation pays. It is the quality of your study, consistency and self awareness. Kasparov goes on to say that though he did not use most of his prepared tactics, there was always a positive correlation between his hard work and his results. “Work leads to knowledge and knowledge never is wasted.”

Look for ways to experiment and push the boundaries in your endeavor

The game and the science
Kasparov had a strict regimen of diet, study and rest, thanks to one of his teachers and his mother. He stays conscious of how his time is spent. He loves his afternoon nap. Know what motivates you and figure out how to push yourself.
Use competition, goals and the like to motivate you. “There are guidelines for what works, but each person must discover what works for him.”

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Book Summary: There's No Such Thing as Business Ethics

The downfalls of giant corporations like Enron, Worldcom, the crisis in the church and even plagiarism by Professor Ambrose are all examples of ethics gone astray. The author of this book argues that one cannot have varied ethics for business, spirituality and their personal life. He also suggest that most educators, philosophers and the like have unnecessarily complicated the issue of ethics.

The consequences of these are many fold and include growing investor distrust in large businesses and the ethics of those who run the businesses.

The reason that people compromise their ethics, the author asserts is threefold:

1. Convenience: One often decides to do the easy thing than to do the right thing.

2. To win at any cost: Everyone wants to win and hates loosing. To win sometimes means breaking ethical laws.

3.Compromising on ethics can take place because of the situation and lying and cheating and even homicide can be justified for love.

"All is fair in love and war." is an age old adage.

Ethical standards are formed by individuals for different situations. Some compromise their own ethics but expect more ethical behavior from others.

There is good news on the horizon says the author. Businesses are becoming more concerned than ever about ethical behavior.

"Glamour and glitz are out. Transparency is in", says the author

Setting more reasonable ethics to have everyone on the same page is a practice that is gaining in popularity.

Behavioral interviews are thus growing in popularity.The problem is that some address ethical issues with :

Remedial issues: Common among these are corporate guidelines in dealing with ethical wrong doing. These are like tax rules and have several loop holes.

Ethical Flea drip: Dealing with those who commit ethical violations. The problem with this, the author says is that the 'fleas' come back.

Using the law: Relying on the law to determine ethical behavior. Corporations can do better than this, says the author.

Most of us expect others to be more ethical than others. For instance most college students believe that CEOs must be held accountable for the recent downfalls of many corporations. However, the majority of those students had cheated on a test.

On a similar note most working people surveyed had either indulged or had been passive observers to unethical behavior.

There is string evidence from looking at history that the true winners are the companies that use ethical behavior in conjunction with competence. In the long haul such efforts will pay off though they may seem expensive for the short term.

The state of ethics cannot be built by an organization as a whole.It must be done continuously by individuals at the expense of doing the right thing.

How does one know what is right? Where is the standard?

Ask yourself

• When you think of ethics in general, do you feel positive or negative?



• Would you discuss and apply ethical principles to your life?



• Can an ethical person still win?



• Do you have a single ethical standards for all parts of your life? at work and home?



• Whom do you trust completely?



• What are your ethical guidelines?

The Golden Rule:

• Most people fall into five levels of ethical behavior: Always, mostly, somewhat, seldom, never. Where do you fit in? Most put themselves in the first or the second category.
  
• Those who put themselves in the second category do so from the inconvenience of conflict,loosing,discipline.



• Most people believe that being ethical is fine unless one is a victim of another person's follies.

There is one guideline to base all ethics, the golden rule

Ask "How would I like to be treated in this situation?" This can be your guideline for all decisions involving ethics. The religions of the world have prescribed this single rule. It cuts across all cultural boundaries. It is based on common sense.

There are two parts to the golden rule: the standard to follow and the will to follow it.

Ethics go beyond speculation and discussion. It involves action.

What should right treatment based on? Wealth? Talent? Political affiliation or beliefs? It becomes a game of "King of the Hill'.

Connecting with others is to find a common ground with others. The golden rule is easy to understand.

Norman cousins said that subjects though of as hard by students turned out to be easy decades later as compared to the softer subjects like ethics.

Sometimes, ethical choices are not obvious. Asking "How would I like to be treated in this situation?" is a way of identifying the stakeholders in a situation.

The golden rule creates a win-win situation - for investors, clients and employees.

It is a moral compass when one is lost.

A firm's CEO reports that following the golden rule leads to almost no EEC claims, retaining the best staff(lower turnover) and increased productivity.-Optimum and maximum growth at the highest level.

How do you evaluate those you interact with? Use the golden rule to evaluate your interactions. Identify benefits of using the golden rule in your company.

The golden rule begins with you. We must make it part of our everyday thinking.

Start with what you want and how you would like to be treated. Recognize the common characteristics among diverse people and find the golden rule. This include wanting to be valued.

The founders of Mission Control systems payed themselves nothing during a downturn and refused to let go of their best employees. If a parent or boss has mistreated you, you know how important it is to be valued.

We need to be appreciated. This builds you self-confidence and esteem. Appreciate the work of others and give them credit where it is due.

We want to be trusted. Trust is the foundation of all interpersonal dealings. Focus on shared goals and be open to new ideas. This may take a leap of faith, but it is worth it.

We want respect. Sort out differences privately. Keep secrets entrusted in you by others. Do not read unsigned letters. When indoubt, communicate your thoughts. It is good for business.

We want to be understood. Callousness and indifference can cause one to loose her job. Seek first to understand before trying to be understood.

We do not want others to take advantage of us. McKinsey's Bauer said that his company had to ensure that the value his company gave to his clients exceed the fees his client pays.

Character engenders trust. Adopt the golden rule as the guiding principle on your life. If you do not have convictions you are merely an echo.

How will the golden rule affect you goals. As Confusious said,

"Knowing what is right and not doing it is the worst cowardice."

"Decisions not conditions determine your ethics" says the author.

Public decisions involving others carry the pressure of conformity.

In action is also a decision.

When it comes to ethics, big decisions are easy to manage. Our dilemmas are usually in the smaller decisions. God is in the details, says the author.

Doing the right thing all the time builds you 'ethical predictability'.

If we want to grow, we must expose our actions to others. This is where our integrity comes into play.

Adopting the golden rule may not bring results right away. Gradually it will lead to a '24 Carat life'

Who in you life is in charge of holding you accountable?

Doing the right thing will bring you attention. This is not a reason to compromise your ethics

These are hindrances to the following the golden rule.

• Pressure from expectations, Corporate cultures. Pressure creates tension which can cause impulsive decisions. We then start to look for shortcuts. Ask tough questions. Who are you accountable to?


• Desire for Pleasure/Comfort: The 'if it feels good, do it.' mentality. Run from the temptation if necessary. Do what needs to be done when it needs to be done. Delay gratification.
• The intoxication of Power: Those who thrive on power get a sense of entitlement. Power itself, like money is neutral but some tend to abuse it and make its preservation their primary concern. Realize this: A reputation is a shadow. The real substance of a person is character.
• Pride: Having a sense of exaggerated self-worth can cause one to violate the golden rule. According to one great Christian leader, pride leads to other vices. Pride is competitive by its own nature. It can often delude you.
• Priorities: The best companies are those that have the best core values. Wolfgang said that the things that matter most must not be at the mercy of those that matter least. In 50 years what will matter most among the things you do now?

It is not money itself that is at fault. It is the things that money brings with it that causes unethical behavior. Of the five factors that are hindrances to the golden rul, which of them is your Achilles heel?

How can you avoid this pitfall?

What are your priorities? Things and people in your life.

Seize your golden opportunity: You must first pursue a character by:
1. Taking responsibility for your actions. There are hangups (the ones who blame circumstances) , the bangups (those who blame the past) the gang ups(those who blame others). Churchill called responsibility the price of greatness.

2. Develop personal discipline. 82% of executives admitted to cheating in golf. This is a lack of discipline. Discipline yourself on time, energy, goals and moods.

3. Know your weaknesses. Keep things in perspective. To be forewarned is to be forearmed.

4. Align your priorities with your values: Do not flip flop. Have integrity. As Lincoln said, that a house divided cannot stand.

5. Admit wronging and ask forgiveness quickly. Enron Tyco and Worldcom tried to cover-up.

6. Take extra care with Finances. Henry Ford said that money does not change individuals. It only unmasks them. Money is a only a tool but a sharp tool.

-Earn your money. You'll respect it more.

-Be scrupulously honest.

-be generous: We make a living with what we get. We make a life by what we give.

-Use credit wisely. Refrain from incurring debt. Live within your means.

7. Put your family above your work. This actually helps your career in the long run.

8. Place high value on people. Seizing opportunities means giving of yourself to others and to see value in others.

• In your field, what kinds of opportunities does one look for?
• What is a golden opportunity?
• What kind of person has the characteristics of meeting this opportunity?

The Midas Touch

It is not what we take up but what we give up that makes us rich. There is riches in leading an ethical life. Take the focus off yourself and see how you can give value to others.

-Treat people better than they treat you. Take the high road, no matter how the other person treats you.

-Walk the second mile: Do not stick to doing the bare minimum. Go above and beyond it.

-Help those who cannot help you.

-Do right when it is natural to do wrong.

-Keep your promises even when they hurt.

Petty people lack perspective, priorities, passion and progress in their lives.

Conclusion:
What goals have you set for yourself in life and in your career? How do you plan to reach them? You can go for the gold or the golden rule. External appearances may show payoffs for the former but it is only the latter that will have lasting success.

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Book Summary: Leadership

This is a classic book on leadership, filled with nuggets fro m none other than ‘America’s mayor. Here are my takeaways.


The morning meeting was an essential part of beginning the day for Giuliani. The habit of getting his homework done in the wee hours of the morning came from his mother. The morning meeting set the tone for the rest of the day. It always brought out issues to all his staff and kept everyone on the same page.


A leader through his actions conveys “I am not afraid and neither should you be.
Sweat the Small Stuff: When Rudy came into power, he was faced with the uphill challenge of reducing the crime in New York city. How could one bring down crime in a city with 2000 murders a year? When Rudy went after petty criminals he realized that most of them had a rap sheet for more serious offences.
He believed that any improvements made to the crime situation in New York must not simply be heard of but observed.

Preparation is another key to effective management: One of the reasons why Rudy was so effective in the aftermath of 911 is that he and his staff had conducted numerous fire drills of crisis situations.

Surround yourself with great people. Even Babe Ruth and Jordan depended on their teams. However, you cannot predict how the dynamics of a team will work out.

Keep self starters motivated by giving them challenges to grow.
Reflect and then decide: Decisions are the most important cornerstones of leadership. Work out not just what but when. Seek alternatives and be prepared to change your mind. The longer you wait, the more mature the decision will be.

Decisions are usually not choices between good and evil. They are multidimensional. They may involve less than perfect end results and should be based on long range goals and possibilities.

McCain is a good friend to Rudy. His travails in Hanoi shaped him to be a great senator and hero. Unfortunately he was impressed with Bush too.The key to his win against Gore, according to Rudy was his focus on Education.

In a Presidential campaign the key to success is to find a theme that appeals to people. The media often pushes pretence for substance and polish for smarts.

Decisions may be postponed but start your homework now, not before the deadline. The sex shops in NY were stealing from the economy of the city. Rudy and his team decided that instead of going after all of them, they would eliminate them near residential areas thereby boosting rent in such areas.

Under promise and Over deliver: A leader manages results AND expectations. Organizations often base their revenue predictions on best case scenarios that often prove wrong. Under promising enable surprises.
Managing Expectations: Some would like to announce a major undertaking before commencing it. Rudy believes that one must do some research and then fine tune the plan before undertaking such a venture. He does acknowledge that there is some risk in loosing the credit for the job in adopting his strategy.
"For every right there is an obligation, for every privilege, there is a duty" Rudy ensured that those who want welfare from the government is obligated to do something in return. His 'America Works' initiative came from this belief.

Don't make promises when you cannot deliver. Trying to appease others with false statements can have disastrous consequences.

Lead by Ideas. Show them how you view your universe. For any situation, it is imperative to look at it and deduce where you stand. Rudy suggests:
Develop strong Beliefs

When there is evidence contrary to your belief, changing your mind is a sign of intellectual honesty.

Stick to this opinion, even if it is unpopular. Despite having grown up with Democrat parents, Rudy became Republican when he realized he no longer agreed with liberal views.
The keys to a great speech are
Know the material, inside and out.

Organize your ideas

Throw the material away and simply talk. It will be from the heart. A leader is only as good as his word.
Be Your Own Man: Sometimes the effectiveness of a DA is how unpopular one is. A politician is elected based on his character and his judgement. He must remember this and stand for what he believes in. As a young man, Rudy was a Yankees fan even though he lived Dodgers territory.
Do not expect others to do work you would not do yourself. Never overwork yourself to the point of ineffectiveness. Take time off as necessary.
"If you can do what you expect others to do, as well as the best of them, your ability to lead is enhanced tremendously."
One leadership lesson Giuliani learned from being a DA is that like a good football coach, he had to match the right person with the right task.
Base your decisions of the allegiances most important to you. Your principles may differ from the official party line in Politics. Choose the one that will help you sleep better at night.
Make decisions based on your convictions but make sure you have the shoulders to bear their consequences
Loyalty: Giuliani mentions several anecdotes in talking about loyalty. If a member of his staff is under attack, a leader must first defend the victim. However, he warns that one must avoid going to bat for one's own when the person is actually at fault.The distinction between the two, he cautions, is not always clear.
"Weddings discretionary, Funerals mandatory". The latter shows that the leader is around when she is needed most. Be there for the hard times. Rudy memorialized all those who died,especially those who tried saving lives in the aftermath of 911.
Stand Up to Bullies: One who is unruffled under pressure is capable of helping others in a crisis. Rudy's Father was a boxer. As in boxing, if a person is calm even when being clobbered, he can seek opportunities to strike back. Rudy's distaste of bullies manifested itself when he brought down Mafia bosses as DA, denied parking to UN diplomats in unauthorized areas and refused to union leaders who tried making unreasonable demands.
Study and Learn Independently: Develop your expertise. It is fun, your duty and most of all, it eliminates the biases that the opinions of others may bring to your judgement. Rudy was taught the pleasure of learning early by his mother, a school teacher. He did his own study of books to learn golf after a few setbacks in the game from his first few attempts. Later on his study of the disease was most effective in his fight against Cancer. During the aftermath of 911 Rudy carved out time to seek and study how to gain inspiration. His readings on Churchill in particular helped him bring optimism to those troubling times.He believes that this practice helps differentiate the real from the make-believe.
Organize around a purpose: Rudy encouraged his staff to go above and beyond the call of duty. Some members of his staff had no single portfolio. With his staff, 'Its not my job.' is never the right answer. Any organization can grow in ways that do not make sense. A leader must be aware of such mismatches, says Giuliani. Do not loose sight of the larger objective. There is a link between structure and action.
'The organizational chart is more than a map. It is a living tool that a leader uses to work send a message about the organization and for himself to stay on course.'
Bribe only those who stay bribed. Though a leader must strive to work with those he trusts, there are times when he has to work with people he is unsure about or dislike. Deal with those who are true to their word.
If this is not possible, lock up every detail in the clearest detail, all written and ensure that there are witnesses. Keep the deal to the minimum to get the deal done. That way you collect your end of the bargain right at the beginning.
Reagan did this with the USSR. He wanted inspection mechanisms 'with teeth'. If you don't trust someone, ask 'Can the person deliver?' If they won't, you're wasting your time.
There are those that do not share the same values we do. However, we can negotiate with them. The key to negotiating with those who are not true to their word is to have them deliver before we do.
The Recovery
On Sept 12th, Rudy held a meeting. He decided on some actions to be done immediately and some in abeyance. He tried to analyse other potential targets from new attacks. He ensured that provisions were made for the injured.
On Thursday the 13th Rudy ordered a prayer service. Then he reached out to the families of the victims.Rowe ordered more office equipment to ensure timely messages were sent.
Giuliani ensured that family health centres had adequate resources, particularly for treatment of mental health.He met with the Red Cross. Accenture and Cisco were there to provide IT support.
Rudy held a press conference seeking more corporate help. Dell, Worldcom, AOL and Home Depot pitched in. McDonalds stayed open round the clock to support the rescue crew. The fire and police departments, badly affected by the event continued to pitch in.
The health dept. pitched in too. Their job became harder with Anthrax arriving a month later. The economic development dept. had to persuade business to stay in the city. The trade waste organization had to ensure that the mob did not get in on the removal of debris on the towers. The employment department held job fairs with victims of 911 getting priorities.
That night Giuliani had chest pains and hoped that he was not having a heart attack. He took a walk and confirmed that his prayers were answered. He was ready to make strong decisions.
President Bush visited the following day, despite warning from his advisors that it was too dangerous to visit New York early. Giuliani ensured that the President had adequate security. Giuliani was grateful for Bush's support. He asked that if Bin Laden was caught, that he, Giuliani would be his executioner.
In 3 days his government had replaced a command center(from 7 World Trade Center) and in 4, created a family center. On 14th, Giuliani held a memorial service. This would be followed by his first real meal since the crisis.
Giuliani was next meeting with doctors to talk about the potential for Biological and Chemical warfare and how to take contingency measures for such an attack. Giuliani realized that there was such a dangerous possibility. He knew that it was his job to stay calm.
One of his staff wondered if he should promote people to the positions held by those who were lost. Giuliani and he proceeded with the promotions as they realized that they had no other options.Giuliani and Governor Pataki put aside their differences and forged a strong alliance.
As Rudy watched the world series later in Arizona, planning to participate in the New York marathon the following day, he received word of an anthrax attack.
On Oct 11 a memorial was held for the victims of 911. The prince of Saudi Arabia paid ground zero a visit and presented a check of 10 million to Rudy. Rudy, smelled a rat and soon realized that latter had given a press release that the atrocities were justified. After consulting with his staff, Rudy decided to reject the check.
At St. Paul, where Washington had visited after being the first President, Giuliani announced his resignation as mayor.
" Part of leadership is harnessing your goals." Stay calm, but retain your humanity. His anger for the events of 911 are thus justified, says Rudy.

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Book Summary: Getting Things Done

The title of this book is somewhat a misnomer. This book is more about keeping things moving than it is about getting things done. The point of veiw of the author are to keep your appointments and deadlines carved in stone but the rest of your actions and tehir timelines flexible. The reward, the author promises is a Zen-like flow state, which he claims a person can turn on or off at will.

The book is based on the following theories:

• Work is not well defined


• The nature of work is dynamic.


• The old tools of time and work management are inadequate.


• One has to separate the woods from the trees.


• Things will stay on your mind unless you clarify them and justify a plan of action and place enough placeholders to remind yourself of them.


• This one is a kicker: One does not manage time, information or priorities


• One only manages actions.


• One does not do a project, but can take actions to move it forward.


• Horizontal Management is the act of bringing coherence across concurrent activities


• Vertical management is the act to thinking of a project from start to finish. It is the act of project planning.

The five stages of managing action are:

1. Collect:


2. Process


3. Organize


4. Review


5. Do

1. Collecting is the art of gathering one's thoughts It could be simple like an in basket or 'sophisticated' as email. The focus is to get it all out of your head, and emptying your collections

2. Process: Analyze your collections: Are they actionable,, part of a project, do-able, delegatable or deferable.

3. Organize:

• Non-actionable actions are of three types; trash, incubation(someday/maybe) tools and reference.


• Projects are outcomes that require more than a single action.


• Actions that can be completed must be done forthwith and do not have to be tracked.


• Calendar items are either time or day specific actions or day specific information.


• Daily To Do Lists are stressful and can be done away with.


• Calendars only need to track fixed appointments and deadlines.

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Book Summary: Microtrends - Part III-concluded

Here are more Microtrends to look out for:
Tailor Made Religions : Religions and churches are becoming more adaptable to people's needs. New religions are being created.

The Homeschooling Boom: More and more people are homeschooling their kids today. As a result, seminars are curricula are increasing too.

The blurring line between the sexes: no comment.

French Teetotalers: The consumption of wine in France is now going down. This is partly for health reasons, partly because of religious reasons(due to France's growing Muslim population) and partly because of the major decrease in the time it takes to have dinner from decades ago.



As a result, the wine industries of Australia and the United States are gaining ground. This would be as big a revelation as would be if the Chinese were to give up Tea and the Japanese were to give up Susi.

Vietnamese Entrepreneurs: Though strongly communist, Vietnam's economy growth is outperforming Indian and Chinese economies. More multinationals are investing in Vietnam and Vietnam's exports to the US is 5 times the quantity it imports from the US.

Italian Stay Home Men: While living with parents is generally frowned upon in the United States(a la George Castanza of Seinfeld and Norman Bates of Psycho) 82% of Italians live with their parents. Some experts attribute this to Italy's growing unemployment. The unemployment in Italy is in turn caused by a fall in Italian Exports, thanks to increased competition from China.



Russian Swing Voters: According to surveys, Russians are no longer very infatuated by democracy and most Russians prefer a strong leader than to a democracy. With Russia preparing for its democratic government, with Putin and Chess great, Kasparov leading some parties, the swing voter may be the key to whoever wins the election.

European Only Children: The population of Europe is falling at an alarming rate. Many European couples are settling for just one child. This, the author believes will mean that a younger generation of increased confidence, and strong will. This generation, will be outnumbered in Europe by the elderly.



Chinese Picassos: With the increase in income and improved lifestyles brought about by China's growing economy, China's artists are growing in popularity. Many of the World's most famous museums plan to open branches in China.

Indian Women Rising: Indira Nui of Pepsi, Sania Mirza of tennis fame, Sonia Gandhi and Mira Nair are some examples the author gives

Educated Terrorists: Contrary to popular belief, most terrorists today are well educated and come from well-to-do families. Many have studied abroad. Even Usama Bin Ladin is a civil engineer.

Microtrends are testimony that individuality is being celebrated more now, than ever before. Some may be fun, but the author insists that they all have a serious undertone. Together they come together and bring about a collage of varigatedness.

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