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Arnold Schwarzenegger Rejects the Idea of a Self-Made Man

'Total Recall' by Arnold Schwarzenegger (ISBN 1849839735) Actor and politician Arnold Schwarzenegger‘s story has an inspiring premise. The son of Austrian police officer who was a Nazi party member, he moved to New York in the early 1968 to further his career as a body-builder and winning six Mr. Olympia body-building tournaments. In the intervening time, he put himself through business school at the University of Wisconsin Madison, invested in real estate, and parlayed his passion with fitness into a lucrative video- and book-sales company.

Schwarzenegger may have remained a businessperson if not for the success of the documentary Pumping Iron (1977) which transformed him into a minor celebrity and planted the seeds of his Hollywood aspirations. It wasn’t he played a 74-word part in an obscure sci-fi film called Terminator (1984) that he finally became a star.

Even after Arnold Schwarzenegger’s long march from a penniless immigrant to a Hollywood star and later the Governor of California, he declares that the notion of the self-made man is a myth. He states that we must all help each other because no one can get anywhere on their own.

I came over here with absolutely nothing. I had $20 in the pocket and some sweaty clothes in a gym bag. But let me tell you, I had this one little apartment and on Thanksgiving, the bodybuilders from Gold’s Gym came to my apartment and they brought me pillows, dishes, silverware, all of the things I didn’t have. None of us can make it alone. None of us. Not even the guy that is talking to you right now, who was the greatest body builder of all times. Not even me, that has been the Terminator and went back in time to save the human race. Not even me that fought and that killed predators with his bare hands.

I always tell people that you can call me anything that you want, but don’t ever, ever call me a self-made man. It gives the wrong impression, that we can do it alone. None of us can. The whole concept of the self-made man or woman is a myth. I would have never made it in my life without the help. So this is why I don’t beileve in a self-made man. Why I want you to understand that is, because as soon as you understand that you are here because of a lot of help, then you also understand that now it’s time to help others. That’s what this is all about.

Source: Arnold Schwarzenegger—Together on the Goalcast Podcast

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Posted in Philosophy and Wisdom

Seven Principles for Meeting Deadlines

Seven Principles for Meeting Deadlines In meeting deadlines, top performers apply seven key principles. This change management is not intended simply to permit the company to endure a few more years—it is proposed to set the company on a path to greater success and thus virtuous jobs for those who remain.

Another is that a blindly optimistic self-explanatory style of deadlines might actually promote a reduction in effort as we might not try as hard if we believe our ability eliminates the need. For the following reasons, I consider this behavior neither compassionate nor moral.

Principle #1 for Meeting Deadlines: Schedules are Sacrosanct

Task teams express a reverence for “the schedule” as the single most important deadline management tool, even though people search for more colorful, personality-driven keys to victory. But it is precisely its implacability that makes a schedule so stable, incorruptible, and enforceable. Amendments to schedule can’t be made capriciously. Changes should be rare, even agonizing, since each adjustment threatens to compress the final stages. Schedules become impersonal enforcement tools, because they do not respond to appeal. The manager can say, “It’s not me—it’s the schedule that’s pushing us all, and we need to keep pace.”

Schedules are not dreamed up by distant executives who then hand them down to task teams, along with deadline dates. All long-term projects are guided by realistic, believable, timelines that benefit from the insight and input of those doing the work. Schedules codify the ambition and enable synergy.

Within each timeline, milestones are set—and celebrated as they are met. These mini-deadlines make the program more manageable, attainable, and comprehensible those who are focused on their part. When milestones are in jeopardy of not being met, alarm bells go off in the minds of project managers and team leaders. All are affected by slippage along the critical path. A milestone won’t be “bumped” unless, and until, the team knows why it is in jeopardy. Allowing more time won’t necessarily correct the process. Margins of time and budget are factored into each schedule and managed by the teams.

Principle #2 for Meeting Deadlines: Partnering

Deadlines involving major, long-term projects are met jointly; the distance between customer and those who serve are bridged in the interest of expediency. Leaders see that their races against time must be run in unison.

While companies discover many rewards in the closer relationships and find that the doors of communication, once opened, are difficult to close, their original motivation is often to save time. “Business as usual” won’t suffice under the conditions of a major deadline. Competitive companies need each other to win. Deadlines are often joint ventures, since few organizations can go it alone. Even global industrial leaders depend on the unstinting cooperation of customers and suppliers to bring their projects in on time. Conversely, much is expected of them. Reciprocation is possible by modifying billing and payment practices, or by waving long-standing bureaucratic requirements, or by re-routing time-consuming communication paths, or by modeling teams to reflect those of the partner. Customers and contractors like feeling part of the delivery process.

Principle #3 for Meeting Deadlines: Willingness to Accept Risk

Meeting Deadlines: Willingness to Accept Risk Deadlines involve risk. The risks inherent in these projects are not accepted by swashbucklers who revel in danger but by serious professionals who seek ways to reduce the risk—by preparing backup plans, brainstorming creative solutions, and even taking out insurance policies. The risk is accepted, then reduced, to improve the odds to succeed, to make a profit, or to reduce casualties. The willingness to take a chance defines an organization in ways a thousand ads cannot. Word gets around. Companies and individuals who take on risk, and prevail, develop reputations as giant killers.

Something in the nature of “risky” operations binds teammates together. The “sink or swim” mentality of great teams is responsible for innovations that bring their projects in on time. Participating in these deadlines is not simply another day at the office for those involved; these are adventures. Those who pass through the whitewater of a serous deadline can look back on the “nervous time” with a nostalgic pride. “Risk” creates common cause, even more than “reward.” Lackadaisical groups will suddenly become focused and serous once risk is introduced.

Principle #4 for Meeting Deadlines: Company Men and Women

Challenging deadlines are met most successfully by “company men and women” whose most obvious credential is tenure (average of 25 years of service). No one looks forward to retirement (in fact, they seem to dread the day), and all seem to thrive on the formidable tasks assigned to them. While those people are ambitious, success seems to be measured less by personal recognition and more by participation on a job well done. None of them are coy about their futures with the company. “I love it here,” and other expressions of affection and loyalty are heard frequently. Company men and women are usually portrayed as obstacles to bold, forward-thinking newcomers, but they are precisely the people you want tasked with a significant deadline. They are less likely to look on a project as a feather in their caps and more likely to factor in the long-term interests of the company and of the customer (which are complementary).

If you don’t have tried-and-true employees with years of service, entrust deadlines to employees who are sincerely interested in a career with the company. Team players who distinguish themselves by helping others are prime candidates, as are those who demonstrate a real concern for customer satisfaction. Managers must take an active role with a team of fresh faces and lead by example, in creating a sense of mission so compelling that the team will be carried in their wake.

Wise managers assume that peak performers are always being courted by the competition, and could, without proper attention, be gone in the blink of an eye.

Principle #5 for Meeting Deadlines: Family Outreach

The popular stereotype of an executive who sacrifices family for career is somewhat of a contradiction, because, clearly, business success is not sustainable without a strong emotional base. A hard-driving executive plagued by personal problems, distracted by divorce proceedings or custody battles, can’t focus on the job at hand—and may even exacerbate his or her situation by finding a comfort of sorts in alcohol or drugs.

The wise manager recognizes the importance of family and finds ways to involve the “other half” of the deadline team and to enlist their support in the pursuit of the deadline.

When George H. Bush announced the beginning of the first Gulf War in 1990 a cheer was reported at a professional basketball game, and it was to enter into it with anything other than a heavy heart. I know now why that cheer went up, though. The spirit of abstraction.

Leverage the tasks you want to do by withholding them until your more odious tasks are completed first. That way, desirable tasks become a motivating reward.

Principle #6 for Meeting Deadlines: Making it Easy for the Customer

Legal and human resources constrictions counteract names from being released until the selection is complete and the official communications and severance packages are ready. Employees know the moment is coming, but little else.

Meeting Deadlines: Making it Easy for the Customer Thinking in terms of the customer’s deadline and of ways to facilitate the up-line obligations to yet another level of customers or end users is characteristic of great companies. Great organizations never lose sight of the big picture, which includes the customer meeting its own deadline. Great conversations are like anything. Success is usually not an accident. It’s planned. Each company has a reputation as a dependable azlly who will not let the customer fail. That’s true, but letting people go is far easier from a legal standpoint if you’ve established and documented a strong case for why a particular employee doesn’t fit with your culture—and exactly what that means.

Principle #7 for Meeting Deadlines: Willingness to Ramp Up

Most teams have to ramp up to meet their deadlines. It isn’t as if they can meet their challenges the way they are. The challenges they accept are complicated by the steps that need to be taken to meet each deadline—and yet they are not intimidated by the deadlines, nor by the requirements to meet them.

Definitely, we can imagine naysayers. But, the decisions of senior management to accept the challenges have positive repercussions. Organizations are transformed by the requirements to meet the challenges they willingly accept.

Authorize them to communicate and lead, not to just passively watch their departments be clipped without a rationale.

Conclusion: Seven Principles for Meeting Deadlines

Meeting deadlines strongly influences our ability to be happy Those involved in setting the deadline feel driven by the schedule, but they are not emotionally overwhelmed. That’s not strong enough, and it’s not quantifiable. By most quantitative standards, the employee is doing great work. In fact, enforced schsedules offer a sense of relief: You then know exactly what must be done daily to be victorious, and even when “off schedule,” you know what must be done to get back on track. Deadline busters willingly bow to the Schedule God, obeying the truest guide to victory in the race against time.

What it is, therefore, matters a great deal, for studies show that what we choose to meet deadlines strongly influences our ability to be happy. Pursuing meeting deadlines, for example, actually tends to decrease our happiness in the long run. Pursuing altruistic goals, on the other hand, is one of the few things that actually increases it.

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Posted in Life Hacks and Productivity Management and Leadership

Tap the Power of Your Viral Customers

Viral Customers are Your Brand Ambassadors

Viral Customers are Your Brand Ambassadors Whether you are aware of it or not, customers are talking about you this very minute. They are offering opinions, trading experiences, and influencing other customers about you—your company, products, services, and reputation.

Welcome to the world of the “viral customer,” the turbocharged version of the word-of-mouth customer. If you’re not aware of your company’s viral customers, you need to be. If you haven’t geared your company to their growing influence, you had better start now. These talkative, influential customers will play a critical role in the future of your marketing schemes, loyalty programs, customer service efforts, public relations outreach, brand management, privacy policies, and bottom line.

The Internet has created a generation of so-called “viral customers.” Viral customers can be champions or destroyers. They can talk trash about you or trumpet your worth. Which route they take depends on you.

  • If customers are happy with their encounters with you, they are likely to tell lots of their friends. In essence, they become viral ambassadors who will rave about your company to others to create a gush of goodwill. These ambassadors can be valuable, low-cost avenues for building existing relationships, recruiting new customers and keeping old customers happy for life.
  • But if customers are not satisfied, watch out. So-called “viral rebels” can destroy your products, brands, and reputation as they share negative experiences. Moreover, at the moment of negative feedback, they’re likely to be in a “switch mode,” ready to find someone else to satisfy them in ways that your company hasn’t or won’t.

Are you paying attention to what your own viral customers are saying and doing? We’ve found that some companies and industries are more “viral” than others. Customers are much more likely to pass along opinions to others about insurance firms, health maintenance companies, utilities, banks, long-distance and wireless telephone companies, mail delivery services, Internet service providers and auto manufacturers.

What’s at stake is more than the lifetime value of a single customer. Everyone in the viral rebel’s sphere of influence is also at stake, because even though the original customer may walk away from you, he or she is not necessarily finished. The bad-mouthing continues. Suddenly, one person’s negative encounter becomes everyone’s shared experience, and you’re left to pick up the pieces, re-establish ties, win confidence, and regain long-term loyalty.

Some Brands and Issues are More Viral Than Others

Some Brands and Issues are More Viral Than Others Certain brands elicit highly viral customer buzz. Billing issues typically fly off the virility chart. Other hot-button issues involve safety among automakers, baggage claim among airlines, customer service at e-commerce sites, hygiene at restaurants, and staff attitude at retail stores.

If you listen to your viral customers, you will know whether your marketing budget is based on the correct assumptions. You’ll be able to apply one-to-one marketing principles to customer feedback, making your customer insight even richer and more robust. You will know which brands are working. You’ll know your company customer service record, because you will have real-time feedback from the customers. You will identify trouble spots or opportunities well in advance, enabling you to take advantage of positive feedback or stop negative feedback before it explodes.

As you analyze the customer insight you receive, you become wiser and more adaptable, smarter and better able to react, respond, and retool. You start giving customers what they want—easy and convenient communication. They want to be heard. They want to help others, and they want a forum that fits their propensity to rant or rave.

In a world governed by customer insight, all feedback is gold and every complaint is a gift. Raw data guides us, but insight that has quality and meaning enlightens us. Anticipation beats perspiration, and the only way to know what is around the next bend is to pay attention to the curve as it develops.

Here’s five things you can do to tap the power of viral customers:

  • Identify them. Viral customers communicate with you frequently by e-mail, letter or phone. They send copies to others, are passionate or emotional about their experiences and are among the first to try new products or services.
  • Make communication easy. Offer as many ways as possible for customers to get in touch with you-a toll-free phone number, Web-site e-mail address, third-party feedback service, street address or special mailing address.
  • Respond quickly. Respond quickly and in the same fashion. Be empathetic.
  • Mine the negative comments. Respond decisively so that the customer decides to remain in your camp. Don’t give a reason to bolt to the competition.
  • Build the relationship. Add communicative customers to a preferred-customer list. Extend special offers, ask their input on new products and services, and ask how you can improve the relationship. The more you integrate the relationship, the stronger it will be.
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Posted in Business and Strategy Management and Leadership

Putting Your Creativity to Work and Improving the Bottom Line

Fostering Creativity at Work

Fostering Creativity at Work When the going gets tough, many companies cut costs, cling to tradition, and stay under radar. Such reaction is short-sighted. There are lessons to be learned from companies like HP, Virgin, Disney, and other innovators who not only stay the course through uncertainty, but excel. The most innovative companies don’t take cover—they get going. They embrace creativity and innovation in both good times and tough times.

Creativity helps us reinvent when faced with opportunity and survive when faced with challenges. Creative people find new solutions and enjoy a timeless advantage.

What characterizes a company? Its people, process, values, size, resources—or maybe it’s an unorthodox approach to business.

Few companies even begin to embrace the power of creativity and reinvention. Yet we see bold possibilities. We see signs of a new era where creativity drives the bottom line—where business escapes tradition and embraces new practices that nurture the cultural creative mindset.

A Time for Unleashing Your Creativity at Work

Rule-breakers tend to be the more nimble upstarts.

Jack Welch, former CEO of General Electric, said: “Today business is about the resiliency of ideas. It’s about rallying people and the ideas of people.” Companies don’t simply want to make a better product; they want to dramatically transform their culture to lead their industry. The best organizations are committing more people, resources, time and money to increasing creativity and innovation. It’s a smart investment.

Look at Eli Lilly. Instead of churning constantly inside the company to generate new ideas, they’ve reinvented scientific research and created a free market of ideas. The company founded Inno-Centive, a web-based community of problem-solvers and solution-seekers. They tap scientific minds worldwide to create solutions for financial reward.

Success can no longer be sustained with incremental improvements; we must find new sources of growth to leap forward in much wider measure.

Why is Creativity Important in the Workplace: Creativity and the Bottom Line

Creativity and the Bottom Line Although it is difficult to measure creativity’s impact on the bottom line, we see that four benchmarks make or break the bottom line:

  1. Profitability. A creative company produces more great ideas that impact the bottom line. Better product = sales; efficient method = savings; better service = more customers. Hanes recognized this when they reinvented the T-shirt. The Hanes Tagless Tee shirt is the first innovation in the industry in 10 years.
  2. Industry leadership. Leading companies innovate for the long-term. They are visionary, looking at the future with a wide lens. Today’s rapid pace of change means companies can no longer deliver the same products and services in the same way for long. As technology services evolved, IBM, Compaq, and Intel all had to transform their business models. Fox News helped reinvent the cable news industry, repositioning itself as a lively, in-your-face opinion page. And it became the number-one cable news outlet. Innovate or get left behind.
  3. Retention. A more creative culture equates to happier employees. Creative companies embrace more humanistic values, like leadership support, risk tolerance, individual expression, and intrinsic motivation. Peter Coy, Business Week columnist, writes: “In the Creative Economy, the most important intellectual property isn’t software or music or movies. It’s the ideas inside employees’ heads. Leaders create an environment that makes the best people want to stay.”
  4. Motivation. When people feel their ideas are valued they contribute more to the company. Creative companies have a people-first approach, embracing attributes like autonomy and personal challenge. Winnebago discovered this with their innovation program. Every Friday, Winnebago CEO Bruce Hertzke hands out dividend-savings checks and has his photo taken with employees who have made revenue or savings suggestions. Over 10,300 ideas have been implemented, and employees have received $500,000 for their ideas. Employee creativity saved the company $5.5 million in the first year alone. Yet people are primarily motivated by intrinsic reward.

Leaders must balance financial rewards with recognition, rewarding work, and enrichment from the culture. Brainstorming is just one technique. It even has variants. Such methods can be useful in creating food for thought. Also has the advantage of including staff and encouraging an innovative thinking environment—if done well.

Finally, let’s not forget basic business survival. Creativity is required to innovate but it’s also necessary to keep the pipeline full and move forward.

Fostering Creativity at Work: The Ultimate Measure of Value

Executives who are committed to increasing creativity and innovation must first accept this universal rule: Creativity requires a new mindset, which is produced only from cultural transformation.

Leaders must accept that development of human capital requires a greater investment than other types of capital—in terms of money, time, and commitment. The ultimate measure of a company’s value is its people. In creativity, everything comes down to people. Dick Brown, CEO of EDS, puts it this way: “Most business leaders are more comfortable with numbers. While I am very numbers-focused, you can’t change a business with numbers. Numbers are the end result. You change a business by changing the behavior of its people.”

Yet it’s not enough to hire a few creative people or hold an off-site meeting in hopes of finding an innovation “quickfix.” Leaders must rebuild the culture, align the systems, and develop the knowledge of the company. Leaders must care for, nurture, and sustain the culture. They must rediscover their child-like imagination, find their passion, surprise people, and be a little unorthodox.

Guiding Strategies for Enhancing Creativity at Work

Strategies for Enhancing Creativity at Work Here are some strategies to guide the creative leader:

  • Nurture creativity from the top down and bottom up by finding champions in the ranks of junior positions and senior executives.
  • Encourage “skinned knees” by developing a risk-tolerant culture that values the mindset of creativity and rewards both behavior and results.
  • Enact intrinsic and extrinsic rewards for creativity that value the balance of knowledge and imagination.
  • Redesign structures to allow for free flow of ideas. Divisions often work differently from one another. Create venture groups, autonomous communities, and flexible innovation processes.
  • Allow employees to venture out and learn about the world they serve. Many innovations fail because people don’t understand the customer.
  • Create new ways of learning and reward it. Jack Welch says, “You raise the collective intellect by learning, sharing learning, and acting on that learning.”
  • Increase accountability and recognition for breakthrough ideas that create new sources of growth.
  • Create a new language for creativity that infuses the culture with fresh, simple, goal-focused vernacular.
  • Walk the talk. Deliver on the vision and promises through committed action. Redesign performance measurement and talent management in line with innovation.
  • Surprise people. Do new things in new ways and be curious, energetic, passionate, and open-minded. Use this research as the basis for highly focused idea-generation sessions.

The most creative companies aren’t always the cutest companies. Creativity does not equal whimsy—or any other idiosyncrasy of the extinct dot-com cultures. Fun is an important part of it; people can’t be inspired when they’re bored in tedium. Yet creativity is so much more. In fact, it’s really hard work. The common thread is that inspiration strikes people in different ways at different, and often unexpected, times.

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Posted in Business and Strategy Leaders and Innovators

Tips for Mentors and Mentees

Tips for Being a Great Mentor

Mentorship Experience: Bill Gates and Warren Buffett Having a great mentor can do wonders for your professional development and career. Describe what you’ve learned from them and how those skills will help your career going forward. Don’t focus on the relationship’s inadequacies—accentuate the positive. Effective mentorship takes time. Mentors trade away hours they could use to chase their own career goals and spend them on someone else’s.

  • Mentoring is about instituting a partnership that helps your protege learn. It is not about your being an expert or the authority.
  • Great mentors foster discovery, they don’t coach; thought-provoking questions are much more powerful than smart answers.
  • Your protege will learn more if you create a association that is safe and comfortable. Be authentic, open, and sincere.
  • Your rank or position is your greatest obligation—act more like a friend than a boss.
  • Great listening comes from genuine curiosity and obvious attentiveness.
  • Give feedback with a strong focus on the future, not a heavy rehash of the past.
  • Mentoring is not just about what you say in a mentoring session; it is also about how you support your protege after the session. Focus on helping your protege transfer learning back to the workplace.
  • If your mentoring relationship is not working like you hoped it would, clearly communicate your apprehensions to your protege.
  • Mentoring relationships are intended to be temporary. When your protege has met his or her mentoring goals, be willing to let the relationship end.

Tips for Being a Great Mentee

How to Make the Most of a Mentorship Experience The best mentors avoid overriding the dreams of their mentees. If an employee and a job aren’t a good fit, or if an ambitious employee realistically has limited upward mobility in a company, a good mentor will help that employee move on. They might be better suited to another role within the organization, or even to a new path somewhere else.

  • Select a mentor who can help you be the best you can be, not one you think can help you get a promotion.
  • Remember, you can sometimes learn more from people who are different than from people who are “just like you.”
  • Get transparent on your goals and expectations for a mentoring relationship.
  • Communicate your goals and expectations in your first meeting.
  • Mentoring is about learning, not looking good in front of your mentor. Be yourself and be willing to take risks and experiment with new skills and ideas.
  • When your mentor gives you advice or feedback, work hard to hear it as a gift. Just because it may be painful does not mean it is not beneficial.
  • If your mentoring relationship is not working like you hoped it would, clearly communicate your concerns to your mentor.
  • Great mentoring relationships take two people—a partnership. Look in the mirror before you conclude a poor mentoring relationship is all about your mentor.
  • Mentoring relationships are designed to be temporary. When you have met your mentoring goals, be willing to let the relationship end.
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Posted in Management and Leadership

Fallacies are Statements that Contain Errors of Logic or Language

A fallacy is an argument that may be persuasive but contains an error of logic or language.

A fallacy is an error in reasoning, but reasoning can be erroneous in a number of ways, so there is no definitive type of fallacy.

Greek Philosopher Aristotle The Greek Philosopher Aristotle (384–322 BCE) was the first to gather and explain the most common types of errors in reasoning, such as equivocation, begging the question, and false cause.

Aristotle wrote in On Sophistical Refutations (c. 350 BCE)

That some reasonings are genuine, while others seem to be so but are not, is evident. This happens with arguments, as also elsewhere, through a certain likeness between the genuine and the sham. For physically some people are in a vigorous condition, while others merely seem to be so by blowing and rigging themselves out as the tribesmen do their victims for sacrifice; and some people are beautiful thanks to their beauty, while others seem to be so, by dint of embellishing themselves. So it is, too, with inanimate things; for of these, too, some are really silver and others gold, while others are not and merely seem to be such to our sense; e.g. things made of litharge and tin seem to be of silver, while those made of yellow metal look golden. In the same way both reasoning and refutation are sometimes genuine, sometimes not, though inexperience may make them appear so: for inexperienced people obtain only, as it were, a distant view of these things. For reasoning rests on certain statements such that they involve necessarily the assertion of something other than what has been stated, through what has been stated: refutation is reasoning involving the contradictory of the given conclusion. Now some of them do not really achieve this, though they seem to do so for a number of reasons; and of these the most prolific and usual domain is the argument that turns upon names only. It is impossible in a discussion to bring in the actual things discussed: we use their names as symbols instead of them; and therefore we suppose that what follows in the names, follows in the things as well, just as people who calculate suppose in regard to their counters.

In the subsequent centuries of philosophical debate, new categories of fallacies were identified, and the philosophers William of Ockham and John Buridan compiled an extensive number of fallacy types, giving them Latin names such as argumentum ad populum (appeal to the people) and argumentum ad baculum (appeal to the stick, or force).

There are now more than 200 named fallacies, commonly divided between formal and informal.

  • Formal fallacies are mistakes in the logical form of an argument, independent of its semantic content. For example, in the non-fallacious form called Modus Ponens, a correct deduction can be derived from a conditional premise and a correct antecedent, regardless of the content. However, in the related formal fallacy called “affirming the consequent,” a false deduction is derived from the same correct conditional premise and a false antecedent. It follows that not every instance of the deduction would be true, even if the premise statements appeared correct individually.
  • An informal fallacy occurs when the content or organization of the premises of an argument constitutes an error in reasoning, as when an arguer changes the subject (red herring) or appeals to an inappropriate authority (argumentum ad verecundiam).
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Posted in Mental Models and Psychology Philosophy and Wisdom

Philanthropy and The Passion of Bill Gates

Forbes 400 Summit on Philanthropy In June 2015, about 200 billionaires, outstanding philanthropists and social entrepreneur-game changers convened in New York for the annual Forbes 400 Summit on Philanthropy. The high spot of the event was the presentation of lifetime accomplishment awards to Bill and Melinda Gates, and Paul Farmer, cofounder of Partners in Health. The invention or development should be of great significance scientifically, should be agenda setting, and undeniably must have had a chief influence, both in terms of the development of the field and its applications to advance mankind. The rule is that that the accomplishment should not have been marked by another major prize. This means that the reward should not come too long after the invention, discovery or development. This is why our winners occasionally receive the Nobel Prize and not the other way around.

Paul Farmer, Partners in Health Recalling Bill Gates’s passion for philanthropy and his ability to focus on the task at hand, Paul Farmer reminisced,

I was traveling with Bill once in Africa and we decided to go up to the top of this mountain to see the gorillas up close. We’re sitting there, and there’s this beautiful silver-backed gorilla not 5 feet from Bill Gates. And he turns around to me and goes, “Now, where were we in talking about this tuberculosis vaccine?”

Warren Buffett and Bill Gates Philanthropy In a planet with many celebrities but few heroes, Bill Gates has reached superhuman status by pledging much of his massive fortune to the improvement of global equity. He and his wife have directed the causes of health disparities between rich and poor, and their foundation has become a mainspring in international aid and in research on AIDS and other diseases. In June, the Bill and Melinda Gates Foundation’s likely influence on global health was augmented when Warren Buffett, the world’s second-richest man, broadcast plans to give most of his fortune to the foundation established by the richest one. At the same event, Warren Buffett noted the following on Bill and Melinda Gates:

When I was deciding how to give away my money nine years ago, I reached out to Bill and Melinda Gates and struck the kind of deal I usually make: they do all of the work and I sit back and watch. I’ve studied this country’s great philanthropists: Rockefeller, Carnegie. Henry Ford, you name them. None of them ever poured remotely the amount of personal time, effort, and brainpower into their foundations that Bill and Melinda have.

When the Buffett gift was announced, some observers expressed concern that aid from other sources would decline because the Gates Foundation would be perceived as rich enough to solve the developing world’s health problems.

Philanthropy and The Passion of Bill Gates Venture philanthropy has thrived general philanthropy as a controlling principle in concept and in language. The conversion further blurs the line between the private and the public. Foundations have moved away from setting general humanitarian goals and making grants to outside groups for research and for achievement programs in keeping with the foundation’s general purposes. Foundations today set more specific policy goals and then either create or seek out establishments that will carry out projects for which the significances are set by the foundation. Some of the foundations no longer consent unsolicited applications. Instead of a listing of grants, they are now titled a collection of “investments” directed toward achieving a policy goal. The foundations reinforce research that “aligns with our investment strategy.” The Gates Foundation speaks about its “program-related investments” when speaking of its payments in chase of its aims. Accepting the award, Bill Gates noted:

I have had a lot of fun jobs, but none of them has been as fun as partnering with Melinda and seeing real results. My favorite graph is the one that shows childhood death has been cut in half in 25 years, and my favorite prediction is that we’ll cut it in half again.

I see philanthropy as the venture capital tor government functions. There are certain things the private sector will never fund like fighting malaria or fixing primary health systems, because there is no profit model there. Governments want to fund those things, but it’s difficult for them to work on really long-term issues and to attract the right scientists to solve those problems. Philanthropy can take the risks, do the research and development, and fund the pilot programs to tackle some of the most critical issues in the world.

The late 19th century brought the Gilded Age, with riches created by inventions and opportunities. In the 20th century, capitalism was directed by the managerial revolution that fashioned huge corporations and personal fortunes but also repressed innovation, limited new opportunities, and widened the gap in the distribution of wealth. Executive capitalism is now being replaced by the entrepreneurial capitalism stage, a second Gilded Age, which Acs identifies as the New American Capitalism. Entrepreneurial capitalism necessitates a philanthropy (as represented by Warren Buffett and Andrew Carnegie) that ploughs fortunes into society to offer opportunities for entrepreneurs and capital for entrepreneurial activities such as business incubators. Corporate capitalism reinvigorated traditionally manly rhetoric and actions, from paternalism and self-control to the Great Father and the warrior ethos. Abstracted loyalties to gender and race intensified, and gestures of masculinization saturated American culture. Nor have they slackened much in or own post-millennial atmosphere of white male pathos and bathos. Yet it’s not enough to say that manhood developed new forms of contestation and patriarchal performativity as men’s work alienated their gender codes from their gendered bodies. The rise of large-scale organizations threatened manhood’s usefulness.

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Customer Feedback Systems to Go Beyond Customer Expectations

Customer Feedback Systems to Go Beyond Customer Expectations

There used to be a sofa in Microsoft’s telephone customer support center called “the Mail Merge couch”—named for a feature in Microsoft’s word-processing program that lets users customize form letters. The early version of Mail Merge was so complicated that whenever a customer called for help, Microsoft’s representative would lie down on the couch, knowing the conversation was likely to take a long time.

Clearly, something was wrong with that feature. Microsoft fixed the problem in the next generation of Word (and eliminated the need for the couch), but the story illustrates just how important customer feedback can be.

Most business managers understand that using customer feedback to guide the development and improvement of products and services is critical to success. However, some companies and individual managers are better than others are at collecting feedback and using it to make strategy decisions.

Nine Customer Feedback Rules for Managers

Managers who want to help their companies be customer-driven might observe the following nine rules.

  1. Create a system for effectively soliciting customer feedback, and then put that system to work. Boeing uses extensive customer involvement when developing new jetliner models. United Airlines influenced the design of both the 767 and the 777, and British Airways and Eastern Airlines participated in developing of the 757. As a result, the airlines were able to tailor the planes to their specific needs and preferences.
  2. Make sure your feedback system provides reliable information from a cross-section of customers. When a company has thousands or millions of customers, it can’t involve many of them in the product design, but it can involve a representative sample of customers.
  3. Make it easy for customers to provide feedback. Some companies offer a customer-feedback phone number. Surveys are another system for gathering feedback, but many people, including me, are not willing to spend much time answering them. Observing customers while they are using existing products and services is habitually the only way to identify hidden frustrations that they may not even be deliberately conscious of.
  4. Microsoft's Nine Customer Feedback Rules for Managers Send e-mail surveys to customers and offer incentives to fill them out and return them. The incentive may be a little digital money or coupons to buy products at a discount. The electronic survey will be immensely efficient for the company, because the survey results will be in electronic form, making results easier to compile and analyze. Some companies already use the Internet in this way. Encyclopedia Britannica recently e-mailed people who had accepted a free seven-day trial of the company’s online reference, offering another free week to those willing to fill out an online survey about their reactions to the product and its price.
  5. Use focus group and customer councils. Getting a few customers together to discuss their reactions to current and new products or services is another good way to collect customer feedback, although these groups and councils, too, have their limitations.
  6. Go beyond what market research tells you. The transition to graphical computing is an example of an instance where Microsoft needed to go beyond what Microsoft’s market research was telling us. Most software customers who were surveyed did not know they would prefer graphical computing because they had not tried it. Microsoft believed that customers would prefer the new way of interacting with their computers, even though Microsoft’s market research was not very positive. Microsoft’s gamble proved right.
  7. Log and evaluate all service requests, customer suggestions, and product complaints. Microsoft logs and evaluates hundreds of thousands of calls made to Microsoft’s support technicians every year. Put yourself in your customers’ shoes. Observe them using products and watch for frustrations they may not even notice.
  8. Require that the software engineers who develop products spend some time listening to calls from customers. These engineers need to get firsthand feedback. To get the attention of Microsoft’s group managers, Microsoft charges their departments for the cost of providing technical support to customers who use their products.
  9. Request, receive, and act on input from your salespeople. Microsoft seeks and use input for the people who are out in the field with customers. In this industry, customers are eager to share their ideas, frustrations, and enthusiasm. Microsoft is also lucky to be in an industry where products are so adaptable. Whereas it might take an automobile company five years to retool a car model to adapt to customer preferences, software companies can—and do—update their products constantly in response to customer input.

Beyond Customer Feedback

Customer feedback is critical to success of a business No system of market research is foolproof, of course. Even companies that do a good job of listening to customers can make mistakes. Business partners are relying on questionable information to make customer-related decisions. Our new understanding of customer-related decision making should be the starting point for a research approach that has impact on a greater proportion of high-value customer-related decisions.

I am a strong believer that heeding customer feedback is critical to success in any business, especially a dynamic, fast-moving industry such as ours. Despite Microsoft’s willingness to look beyond customer input, 80 percent of the improvements in products like Windows result from customer feedback. Experience has taught us that it is also important to trust your instincts, to take risks, and to provide leadership, even when the customer is not demanding that you do so.

Apply these rules to your business and use the feedback to make improvements. Companies often make the blunder of organizing customer feedback systems around one structure—say lines of business or channel—and employee feedback systems around another—say geography or function. In the end, well-designed feedback loops facilitate employees to be more empowered and companies to be more approachable, creating the competitive edge companies need to adapt and thrive.

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Posted in Business and Strategy Management and Leadership

Bill Gates on Malcolm Gladwell’s 10,000 Hour Rule

Malcoln Gladwell It’s a tempting proposal: if you practice anything for 10,000 hours, then you will become world class. In 1993, scientist Anders Ericsson learned of a group of psychologists in Berlin who were researching violin players found that, by age 20, the leading performers had averaged in excess of 10,000 hours of practice each. Less able performers, in the meantime, clocked up just 4,000 hours. Malcolm Gladwell popularized the notion further in his book Outliers: The Story of Success.

In study after study, of composers, basketball players, fiction writers, ice-skaters, concert pianists, chess players, master criminals,” writes the neurologist Daniel Levitin, “this number comes up again and again. Ten thousand hours is equivalent to roughly three hours a day, or 20 hours a week, of practice over 10 years… No one has yet found a case in which true world-class expertise was accomplished in less time. It seems that it takes the brain this long to assimilate all that it needs to know to achieve true mastery.

Gladwell applied the concept to Bill Joy, Bill Gates, and the Beatles, who sharpened their musical know-how in performance at Hamburg’s strip clubs. Gladwell says:

The Beatles ended up travelling to Hamburg five times between 1960 and the end of 1962. On the first trip, they played 106 nights, of five or more hours a night. Their second trip they played 92 times. Their third trip they played 48 times, for a total of 172 hours on stage. The last two Hamburg stints, in November and December 1962, involved another 90 hours of performing. All told, they performed for 270 nights in just over a year and a half. By the time they had their first burst of success in 1964, they had performed live an estimated 1,200 times, which is extraordinary. Most bands today don’t perform 1,200 times in their entire careers. The Hamburg crucible is what set the Beatles apart.

'Outliers' by Malcoln Gladwell (ISBN 0316017922) Coined by Florida State psychologist Anders Ericsson and made famous by Malcolm Gladwell in his book Outliers, the 10,000 hour rule reflects the belief that becoming a superlative athlete or performer rests on a long period of hard work rather than “innate ability” or talent. As stated by Malcolm Gladwell’s famous 10,000-hour rule, genuine success only comes to people who are willing to put in a great many hours to become first-class at something they value. Whether it involves learning a new piece of equipment, a new language, or developing a craft, being able to cope with setbacks and stay focused on goals regardless of how far-flung they seem. And so the importance of resolve and steadiness in success.

Bill Gates did not only have an propensity for creating software, he also had just about exceptional access as a schoolboy to a mainframe computer that the parents’ association of his local school invested in, in 1968. He got to it in eighth grade before just about anyone else in the world. Correspondingly the Beatles’ genius for melody did not come ready made. They developed it while singing in Hamburg in the early Sixties, at all-night strip clubs. In those years they dedicated more time to pop music than any of their peers. The same could be said for Mozart, or Tiger Woods. They had capability, sure enough, but they also had extraordinary family circumstances that allowed them a reasonable advantage at a very early age. They put the hours in first.

Extraordinary success depends on talent, hard work, and being in the right place at the right time, among other things. In Outliers, Gladwell contends that, to truly master any skill, leaning on various pieces of research, requires about 10,000 concentrated hours. If you can get those hours in early, and be in a position to exploit them, then you are an outlier.

When asked, “What do you think of Malcolm Gladwell’s theory that the years 1953 to 1955 were the perfect ones in which to be born for the computer revolution?” by his father William H. Gates Sr., Bill Gates reponds:

His book makes a lot of great points … that is that in all success stories there are significant elements of luck and tiny … I wasn’t the only kid born between 1953 and 1955, but absolutely to be young and open-minded at a time when the microprocessor was invented … in my case have a friend Paul Allen who was more open-minded about hardware type things and literally brought me the obscure article to talk about that first microprocessor and said you know this is going to improve exponentially … what does that mean and I said well at that means it we can do anything we want and then he was … you know … bugging me the rest of the time every time there’d be a new microprocessor he said can we do something yet and when we were in high school that can happen … so he came back to possible good job there and actually the microprocessor that was finally good enough came out in early 1975 and that’s why I i dropped out … so the timing was pretty important you know why didn’t older people see it … they weren’t this open open minded … they didn’t think about software is the key ingredient … now a lot of kids started doing software and … it’s not if somebody reads the book to say that if you spend 10,000 hours doing something you’ll be super good at it I don’t think that’quite as simple as that what you do is you do about 50 hours and ninety percent drop out because they don’t like it or they’re not good … you do another 50 hours and ninety percent drop out … so there’s these constant cycles and you do have to be lucky enough but also fanatical enough to keep going and so the person makes it to 10,000 hours is not just somebody has done it for 10,000 hours there’s somebody who chosen and been chosen in many different times and so all these magical things came together including who I know and that time … and i think you know that’s very important … when you look at somebody who’s good and say could I do it like them … they’ve gone through so many cycles that it may fool you that you know yes yes you could with the with the right luck, imagination, and and some some talent.

Bill Gates responds to Malcolm Gladwell’s theory that it takes 10,000 hours of deliberate practice to master a skill. Apart from acknowledging luck, timing and an open mind, Gates suggests that a successful person survives many cycles of attrition to make it to 10,000 hours of experience. “You do have to be lucky enough, but also fanatical enough to keep going,” explains Gates.

Unfortunately, a Princeton study, which analyzed 88 studies, established that practice accounted for just a 12% variation in performance.

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Posted in Education and Career Mental Models and Psychology

The Science of Fear

'The Science of Fear' by Daniel Gardner (ISBN 0452295467) Confirmation bias leads us to accept more readily perceived facts that keep to our existing worldview more willingly than objectively considering all of the evidence. Many corporate leaders leverage disruptive change by making targeted, courageous moves toward new market opportunities. Many companies face up to risk with a strategic framework based on extenuating and managing the probable consequences but that line of attack might build bigger protective walls without guarding against the greatest risks—the ones that are unidentified. The uncertainty advantage is something different: an approach that compels managers to recognize the unknown as a market differentiator and an opportunity to give a free rein to innovative solutions that appeal to customers, investors, strategic partners, regulators, and competitors. Concisely, it is an opportunity to go well beyond the characteristic meaning of risk management—that is, seeking ways to achieve the best of the worst outcomes—to create new and sustainable value out of confusion.

In his book, The Science of Fear: How the Culture of Fear Manipulate Brain, New York Times bestselling author Daniel Gardner describes some of our pitfalls when it comes to framing risk properly:

Once a belief is in place, we screen what we see and hear in a biased way that ensures our beliefs are “proven” correct. Psychologists have also discovered that people are vulnerable to something called group polarization—which means that when people who share beliefs get together in groups, they become more convinced that their beliefs are right and they become more extreme in their views. Put confirmation bias, group polarization, and culture together, and we start to understand why people can come to completely different views about which risks are frightening and which aren’t worth a second thought.

It’s also much easier to simply be afraid of that with which we can easily recall to memory. Gardner uses Daniel Kahneman’s two systems of thought to explain:

You may have just watched the evening news and seen a shocking report about someone like you being attacked in a quiet neighborhood at midday in Dallas. That crime may have been in another city in another state. It may have been a very unusual, even bizarre crime—the very qualities that got it on the evening news across the country. And it may be that if you think about this a little—if you get System Two involved—you would agree that this example really doesn’t tell you much about your chance of being attacked, which, according to the statistics, is incredibly tiny. But none of that matters. All that System One knows is that the example was recalled easily. Based on that alone, it concludes that risk is high and it triggers the alarm—and you feel afraid when you really shouldn’t.

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Posted in Investing and Finance Philosophy and Wisdom