Archive for April, 2006

michel dell speech

It’s an honor for me to be here. I know that many of you, both graduates and parents, have been waiting for this day for many years. I’m very proud to have my parents with me today, who have also been waiting for many years. Mom and Dad … I have some bad news for you. I may be on the stage, but I’m still not going home with a degree.

Though I left UT prior to the achievement that you’re all celebrating, this school has been a big part of my life in many ways: as a source of guidance and counsel for a young start-up company, as a constant resource of talent and support for a growing and established business, and as the foundation for a dream that this community has helped to build. I feel a tremendous connection with this university, and that’s why I’m so honored to be with you this evening.

I’d like to share my remarks tonight in memory of Dr. George Kozmetsky—a longtime friend of Dell, the University of Texas, and the Austin community. George was a visionary leader who recognized the potential in people and helped fuel their success with his wisdom and counsel. I was fortunate to be one of those people.

Over the years, I’ve had the opportunity to travel a less-traditional path. But I’ve managed to cover a fair amount of territory. There may be some lessons that I’ve learned that could help you in some small measure on your road ahead.

As you stand here tonight, you are at the starting point of a wonderful journey. But it’s a journey that can only begin with your decision to embark. We are a nation of accomplishment, and this ceremony is a great testament to that. But the unspoken requirement of a commencement is that you now must commence. There are countless contributions and achievements that never occurred, all due to a failure to begin.
Early in the history of Dell, we recognized that our path to greater success led us out of Austin, out of Texas, and even out of this country. So as a three-year-old company, with just 150 employees, we opened our first international operation in the UK … to great skepticism. The only true believers were the Dell team … and of course, our customers. Since then we’ve expanded to serve customers around the world. But it all started with that first decision to embark.

And now you’ve accomplished something great and honorable and important here at UT, and it’s time for you to move on to what’s next. But you must not let anything deter you from taking those first steps. You have an abundance of opportunities before you—but don’t spend so much time trying to choose the perfect opportunity, that you miss the right opportunity. Recognize that there will be failures, and acknowledge that there will be obstacles. But you will learn from your mistakes and the mistakes of others, for there is very little learning in success.

Fourteen years ago, Dell had the opportunity to learn two big lessons … the hard way. One lesson was from a failure to manage our inventory properly, and the other was from a failure to listen to our customers when it came to developing new products. But we followed the advice that Dr. Kozmetsky gave me, and we fixed our problems as fast as we found them. Today, we set the standard for managing inventory and listening and responding to customers, and we owe those strengths to a willingness to try, and to fail, and to learn.

With the understanding that you will face tough times and amazing experiences, you must also commit to the adventure. Just have faith in the skills and the knowledge you’ve been blessed with and go. Because regrets are born of paths never taken.

Then, as you start your journey, the first thing you should do is throw away that store-bought map and begin to draw your own. When Dell got started, it didn’t come with a manual on how to become number 1 in the world. We had to figure that out every step of the way. And with each new product and new market, the industry “experts” said we’d fail. Just a few short years ago, we announced plans to build powerful computers at the center of the Internet (“servers” for those of you from the engineering school.) Through the chorus of naysayers, we emerged as a world leader in servers, and we continue to gain momentum. And as always, we did it our way, with customers—not the experts—in mind.

You too have an advantage that you’re not encumbered by years of conventional thinking. You have a new and fresh perspective with which to view the world. Your time at this great university has helped sharpen your sense of discovery, and there is no better catalyst for success than curiosity.

It’s through curiosity and looking at opportunities in new ways that we’ve always mapped our path at Dell. Of course, we didn’t invent the concept of selling directly to customers, and we didn’t invent the personal computer … and we certainly didn’t invent the Internet. But there’s always an opportunity to make a difference. There is always the chance to refine something, to eliminate unnecessary steps, or to look at something in a new light. You can stand on the shoulders of the giants who came before and see a little further. And sometimes there’s an opportunity to achieve a major breakthrough with a completely new idea that re-defines the subject.

But whether it’s evolution or revolution, there’s always a better way to build a computer, or map a genome, or liberate a country, or take a basketball team to the Final Four. Just work to understand the world around you. Read books. Read websites. Read other people. Circle the pitfalls and highlight the opportunities. Then build a vision of how it could all be better and work like hell to make it happen.
We are fortunate to live in a country that accepts and even encourages experimentation and new ideas. America’s greatness is based on the fundamental belief that our greatest individual contributions are achieved along the course we chart for ourselves.

As you walk the path you’ve chosen, remember that the road ahead is paved with relationships. I’ve enjoyed some great fortune, but none of it would have happened without the people who shared their wisdom, the hard work of the Dell team worldwide, and the love and support of my family and friends. Remember … there’s no such thing as a self-made success.

As Dell has grown over the years, many critics have asked me when I would finally step aside and let others run things. But the truth is, other people have been helping run things at Dell for a long time. The greatest mistake you can make is thinking you can do it all by yourself.

My most important role at Dell is growing and developing a strong team … and I give all of myself in that effort. I learned very early to surround myself with talented people who challenge convention, offer new ideas, and relentlessly drive for improvement. And to let those people thrive.

Try never to be the smartest person in the room. And if you are, I suggest you invite smarter people … or find a different room. In professional circles it’s called networking. In organizations it’s called team building. And in life it’s called family, friends, and community. We are all gifts to each other, and my own growth as a leader has shown me again and again that the most rewarding experiences come from my relationships.

And even as you keep traveling the road ahead, you must always remember where you came from. Each of us carries the dust and dreams of the places that helped shape us, and all of us can count our blessings that our path has taken us through Texas.

There’s no other place that so purely preserved a centuries-old heritage of hard work, self reliance, and initiative like Texas. There’s no other place whose sons and daughters have so consistently set the standard—from government, business, and music, to sports, education, and technology—like Texas. And there’s no other place that can stir such jealousy in New Yorkers, such disdain in Californians, and such contempt in the French—yet hold their utmost respect—like the Lone Star State.

The spirit of Texas is the purest concentration of the American spirit. Texas is to this country, what America is to the world. And there is no greater embodiment of that spirit than The University of Texas at Austin. During your travels, remember where you came from, and do right by Texas.

Finally, many times along the way you’re going to ask why. Why am I on this path? What is it all about? You’ll ask yourself those questions in 10 years and in 20 years as often as you’re asking them now. Well … I have an answer for you. It’s all about winning. That’s right, winning.

But I’m not talking about the most points, or toys, or market share. (Though I certainly like market share.) I’m talking about winning in a contest with your own potential. I’m talking about believing in yourself enough to become the best accountant, engineer, or teacher you can possibly be. I’m talking about never measuring your success based on the success of others – because you just might set the bar too low.
I was fortunate to find my passion early in life. I started as a UT biology major and soon realized that all of those stacks of computer parts in my room were trying to tell me something. (And my roommate had a few things to say as well.) So 19 years ago, when I was 19 years old, I started Dell in that dorm room right over there. And despite juggling my classes and a computer company … I just knew there had to be something easier than organic chemistry!

But many people find their passion later in life, and others never find it at all. And for some, their greatest passion is the search itself. But whether you’ve found your calling, or if you’re still searching, passion should be the fire that drives your life’s work.

The key is to listen to your heart and let it carry you in the direction of your dreams. I’ve learned that it’s possible to set your sights high and achieve your dreams and do it with integrity, character, and love. And each day that you’re moving toward your dreams without compromising who you are, you’re winning. Look around you. At a school this size, with an international reputation for greatness, you might think of yourself as just a number. However, I recommend that you choose the number 1.

I’ve talked today about a journey, one that each of us travels. Often we travel together, as all of you have during your time at UT. But in the end, it’s your journey. Your path to travel and your responsibilities along the way. You are free to choose, and you are free to succeed. It just takes hard work and a dream. Most who finally leave this great university never imagine that they’re going to change the world. Yet every one of you will. How you change the world, is all up to you to decide.

I wish you all a great adventure on the road ahead.

Thank you.

Leave a Comment

things leadres do

Things Leaders Do

GE’s Jeff Immelt on the 10 keys to great leadership.

From: Issue 81 April 2004 Page 96 By: Fast Company

When GE’s CEO Jeff Immelt teaches up-and-coming leaders at the company’s famed management-development center, he runs through a checklist of what he calls “Things Leaders Do.” In an interview with Fast Company, Immelt reveals his own leadership checklist.

1. Personal Responsibility.”Enron and 9/11 marked the end of an era of individual freedom and the beginning of personal responsibility. You lead today by building teams and placing others first. It’s not about you.”

2. Simplify Constantly. “I always use Jack [Welch] as my example here. Every leader needs to clearly explain the top three things the organization is working on. If you can’t, then you’re not leading well.”

3. Understand Breadth, Depth, and Context.”The most important thing I’ve learned since becoming CEO is context. It’s how your company fits in with the world and how you respond to it.”

4. The importance of alignment and time management.”There is no real magic to being a good leader. But at the end of every week, you have to spend your time around the things that are really important: setting priorities, measuring outcomes, and rewarding them.”

5. Leaders learn constantly and also have to learn how to teach. “A leader’s primary role is to teach. People who work with you don’t have to agree with you, but they have to feel you’re willing to share what you’ve learned.”

6. Stay true to your own style.”Leadership is an intense journey into yourself. You can use your own style to get anything done. It’s about being self-aware. Every morning, I look in the mirror and say, ‘I could have done three things better yesterday.’ “

7. Manage by setting boundaries with freedom in the middle.”The boundaries are commitment, passion, trust, and teamwork. Within those guidelines, there’s plenty of freedom. But no one can cross those four boundaries.”

8. Stay disciplined and detailed.”Good leaders are never afraid to intervene personally on things that are important. Michael Dell can tell you how many computers were shipped from Singapore yesterday.”

9. Leave a few things unsaid.”I may know an answer, but I’ll often let the team find its own way. Sometimes, being an active listener is much more effective than ending a meeting with me enumerating 17 actions.”

10. Like people.”Today, it’s employment at will. Nobody’s here who doesn’t want to be here. So it’s critical to understand people, to always be fair, and to want the best in them. And when it doesn’t work, they need to know it’s not personal.”

Leave a Comment

Reason to start a comapny

Three Good Reasons to Start Your Own Company

Don’t start your own company because you want to be your own boss. There are three ways in which a company can make more profit than an investment in a Vanguard S&P 500 index fund:

You know how to do something that nobody else can do (the typical MIT tech spinoff approach)

You have a lower cost of capital than anyone else (the “my dad was really rich” approach taken by Bill Gates and others)

You have a better understanding of one kind of customer than anyone else.

The problem with Way #1, knowing how to do something that nobody else knows how to do, is that there is no proven market for whatever it is you are doing. Maybe nobody has bothered to learn how to do this because it isn’t necessary to do. A lot of things that look great in the lab and in a scientist’s or engineer’s head don’t look good to a customer for reasons that may be impossible to predict.

Having rich parents is great. In fact, it is the best and surest way to get rich in these United States. Unfortunately, having a low cost of capital is no guarantee of success because, as society has become ridiculously rich, capital has become very cheap. Your competitors can probably get a home equity loan at 6 percent on their McMansions. How much cheaper can your cost of capital possibly be?

The most reliable source of supranormal profits is superior knowledge of one kind of customer (Way #3). Ideally this will be the kind of customer that larger companies are overlooking. The founders of SAP, for example, were employees of IBM Germany for many years and got exposed to the accounting challenges of large manufacturers. When they quit IBM, they were among the best situated programmers in the world to build an accounting system for manufacturing companies. It is not because these guys were the world’s best programmers that SAP is today bringing in $10 billion per year in revenue and has a market capitalization of $60 billion. It is because these guys were the best programmers who understood the problems of their customers.

If you don’t understand customers, consider taking a customer-facing job (think “sales engineer” or “product manager” rather than “cubicle-dwelling system internals programmer”) at a company that already has the kind of customers you think constitute an attractive market. Once you’ve figured out what the customers needs, quit and start your own company.

Venture Capital and the Successful Company = High RiskIf you have an idea, two guys, and a PC, venture capital is great. You start with nothing but your energy and creativity. The venture capitalist adds money. If the company succeeds, you all get rich. If the company fails, you are back to having nothing (except for the venture capitalist, of course, who pockets two percent of the total fund he raised from limited partners every year, even if he never invests any of the money or if all of his investment choices prove worthless; at a $500 million fund that lasts 5 years, this amounts to $50 million in fees merely for showing up to work).
Unfortunately, most venture capitalists don’t like to take risks. They don’t know how to evaluate products, technologies, people, or markets. So they don’t want to fund a company until it has significant revenue. I.e., they only want to fund a company that is already worth a lot.

Suppose that you own the kind of company that is attractive to venture capitalists. You have $10 million in revenue, of which $1.5 million is profit. You could simply move $1.5 million into your personal checking account every year, but instead have chosen to reinvest the profits in your growing business. You are feeling a little tight on capital and worry that if one of your competitors, flush with venture capital or money from a public stock offering, gets intelligent and efficient, you could be snuffed out. But you aren’t that worried because you own an enterprise that is probably worth at least $10-20 million. You are a multi-millionaire!
Suppose that you decide to take venture capital. The VCs value your company at $25 million right now and put in $10 million for a minority share. Buried somewhere deep in the notebooks of legal documents that closed your deal will be something about “participation rights” for the preferred shareholders (the VCs). Basically it says that if the company is ever sold, the first $10 million goes to the preferred shareholders (them) and then the rest of the sale price is divided up among preferred and common shareholders (you) according to percentage of ownership. Some VCs get a little more aggressive on their participation rights and add a 10 percent annual interest. So if the company sells five years later they’d be guaranteed the first $15 million or so.

Now imagine that the strong economy that enabled you to grow to $10 million in revenue on your small initial investment begins to falter. Customers are deferring purchases. Perhaps the whole market segment is shrinking and becoming unattractive to investors. Your revenue is down to $5 million per year. Profits are down. Your entire enterprise is only worth about $5 million now (1X revenue isn’t uncommon for a private company in a boring market).

If you had not taken venture capital, you are still a rich person. You own something worth $5 million. It was better a few years ago, when you owned something worth $10-20 million, but you can still afford a Robinson R44 helicopter and to hang out at the local airport with radiologists and gynecologists.

If you had taken venture capital, however, your commmon shares are now worthless. It is very unlikely that your company will ever be worth more than the $10 million that was invested by the preferreds and therefore all that you will ever get out of this company is your salary. You are a wage slave even if you don’t realize it yet.

How can you cut down your risk? One obvious approach is to steer clear of venture capital and grow your company a little more slowly. Anything more than 25 percent annual growth tends to be chaotic. A less obvious approach is to insist that the venture capitalists buy some of your common shares at the time of the investment. There are a lot of venture capitalists and not too many good companies. If your company is attractive, you can probably find a firm that will agree to put $10 million into the company and, say, $3 million into your pocket. Then if the enterprise stumbles and ends up being sold for, say, $9 million, you won’t feel like a total idiot.

Everyone on the Board should have held Profit-and-Loss ResponsibilityThe typical white collar worker gets the job by having the right credentials and connections and then gets ahead by pleasing his or her boss. This worker might have a fancy education, a fancy suit, a smooth demeanor, and a political sophistication, but know nothing about making a profit or pleasing customers. The shareholders want profits, but the employee wants a raise and a promotion, things that can be most easily obtained by sucking up to the boss. It is very difficult to refocus one of these middle managers to think about customers and profits instead. Once the employee psychology sets in, it seems to be more or less permanent.

For your Board of Directors you need folks who are actual business people. A business person is one who has held profit-and-loss responsibility (“P&L” on their resume). P&L responsibility means that the person was in a position to determine the total profit earned by a company or a division and received compensation based on that profit, not based on what his or her manager thought.

Better someone who was the manager of a McDonald’s restaurant or a roadside shop in Hyderabad than an impressive former management consultant or middle manager from a big company. The Board makes important decisions and the directors need to have an intuitive feeling for what is going to make the customers happy and get them to keep coming back and paying. Membership on the Board should be limited to those who have founded companies, run companies, or held P&L responsibility in a division of a larger company.

Don’t be in a Rush to Hire Top ManagersIf you’re reading this, you’re probably an expert technologist of some sort and perhaps you’re the CEO of your new enterprise. The most obvious step would seem to be to hire someone else to be CEO, someone with more business experience. Unfortunately, at this early stage of your company you’re not likely to attract any good managers. You might have a good idea. You might have a good technology. You might have a good group of engineers. You do not have a good business. A good business has customers, revenue, and profits. The best managers are attracted to good businesses. Ask yourself “If someone were any good as a manager, why would he want to manage my company, which has almost no resources to deploy, when he could instead manage a division of General Electric?”
It is always easy to hire more of the kind of stars that you already have. A company that revolves around great salespeople and has a few on board already will find it easy to hire more great salespeople. A company that revolves around Stanford-educated superstar engineers will find it easy to hire more Stanford-educated superstar engineers. Just because the smartest guy you knew from grad school wants to work with you at your new company, don’t be deceived into thinking that a competent manager will find your enterprise attractive. Business people will approach you wanting to get involved. Mostly these will be older guys who were discarded by their Fortune 500 employers and maybe some young guys who couldn’t get jobs at GE.

Larry and Sergei had to run Google, the fastest growing company in the history of the world, themselves for about three years before it was successful enough to attract a competent CEO. Bill Gates ran Microsoft for more than twenty years before his successor, Steve Ballmer, who had worked at Microsoft nearly the entire time, was adequately trained to take over the reins.

For an organization with tremendous institutional history and stability, bringing in an outsider at the top might be the only way to effect some needed change. That’s why you sometimes see the Fortune 500 bringing in outsiders and the American people often vote for an outside CEO to head up the Federal Government. An organization that has been recently and rapidly assembled, however, is very fragile and bringing in an outside CEO is tremendously risky. Much better to copy Bill Gates and bring in a COO then promote him or her to CEO when the individual has learned enough about the organization and vice versa.
Be wary whenever interviewing someone who isn’t like you. You probably don’t know how to evaluate them. They probably aren’t very good, otherwise they wouldn’t be interested in your tiny little enterprise. Use your network of Board members and top business executives to evaluate management candidates rather than relying on your own judgement and enthusiasm.

Leave a Comment

Reason to start a comapny

Three Good Reasons to Start Your Own Company

Don’t start your own company because you want to be your own boss. There are three ways in which a company can make more profit than an investment in a Vanguard S&P 500 index fund:

You know how to do something that nobody else can do (the typical MIT tech spinoff approach)

You have a lower cost of capital than anyone else (the “my dad was really rich” approach taken by Bill Gates and others)

You have a better understanding of one kind of customer than anyone else.

The problem with Way #1, knowing how to do something that nobody else knows how to do, is that there is no proven market for whatever it is you are doing. Maybe nobody has bothered to learn how to do this because it isn’t necessary to do. A lot of things that look great in the lab and in a scientist’s or engineer’s head don’t look good to a customer for reasons that may be impossible to predict.

Having rich parents is great. In fact, it is the best and surest way to get rich in these United States. Unfortunately, having a low cost of capital is no guarantee of success because, as society has become ridiculously rich, capital has become very cheap. Your competitors can probably get a home equity loan at 6 percent on their McMansions. How much cheaper can your cost of capital possibly be?

The most reliable source of supranormal profits is superior knowledge of one kind of customer (Way #3). Ideally this will be the kind of customer that larger companies are overlooking. The founders of SAP, for example, were employees of IBM Germany for many years and got exposed to the accounting challenges of large manufacturers. When they quit IBM, they were among the best situated programmers in the world to build an accounting system for manufacturing companies. It is not because these guys were the world’s best programmers that SAP is today bringing in $10 billion per year in revenue and has a market capitalization of $60 billion. It is because these guys were the best programmers who understood the problems of their customers.

If you don’t understand customers, consider taking a customer-facing job (think “sales engineer” or “product manager” rather than “cubicle-dwelling system internals programmer”) at a company that already has the kind of customers you think constitute an attractive market. Once you’ve figured out what the customers needs, quit and start your own company.

Venture Capital and the Successful Company = High RiskIf you have an idea, two guys, and a PC, venture capital is great. You start with nothing but your energy and creativity. The venture capitalist adds money. If the company succeeds, you all get rich. If the company fails, you are back to having nothing (except for the venture capitalist, of course, who pockets two percent of the total fund he raised from limited partners every year, even if he never invests any of the money or if all of his investment choices prove worthless; at a $500 million fund that lasts 5 years, this amounts to $50 million in fees merely for showing up to work).
Unfortunately, most venture capitalists don’t like to take risks. They don’t know how to evaluate products, technologies, people, or markets. So they don’t want to fund a company until it has significant revenue. I.e., they only want to fund a company that is already worth a lot.

Suppose that you own the kind of company that is attractive to venture capitalists. You have $10 million in revenue, of which $1.5 million is profit. You could simply move $1.5 million into your personal checking account every year, but instead have chosen to reinvest the profits in your growing business. You are feeling a little tight on capital and worry that if one of your competitors, flush with venture capital or money from a public stock offering, gets intelligent and efficient, you could be snuffed out. But you aren’t that worried because you own an enterprise that is probably worth at least $10-20 million. You are a multi-millionaire!
Suppose that you decide to take venture capital. The VCs value your company at $25 million right now and put in $10 million for a minority share. Buried somewhere deep in the notebooks of legal documents that closed your deal will be something about “participation rights” for the preferred shareholders (the VCs). Basically it says that if the company is ever sold, the first $10 million goes to the preferred shareholders (them) and then the rest of the sale price is divided up among preferred and common shareholders (you) according to percentage of ownership. Some VCs get a little more aggressive on their participation rights and add a 10 percent annual interest. So if the company sells five years later they’d be guaranteed the first $15 million or so.

Now imagine that the strong economy that enabled you to grow to $10 million in revenue on your small initial investment begins to falter. Customers are deferring purchases. Perhaps the whole market segment is shrinking and becoming unattractive to investors. Your revenue is down to $5 million per year. Profits are down. Your entire enterprise is only worth about $5 million now (1X revenue isn’t uncommon for a private company in a boring market).

If you had not taken venture capital, you are still a rich person. You own something worth $5 million. It was better a few years ago, when you owned something worth $10-20 million, but you can still afford a Robinson R44 helicopter and to hang out at the local airport with radiologists and gynecologists.

If you had taken venture capital, however, your commmon shares are now worthless. It is very unlikely that your company will ever be worth more than the $10 million that was invested by the preferreds and therefore all that you will ever get out of this company is your salary. You are a wage slave even if you don’t realize it yet.

How can you cut down your risk? One obvious approach is to steer clear of venture capital and grow your company a little more slowly. Anything more than 25 percent annual growth tends to be chaotic. A less obvious approach is to insist that the venture capitalists buy some of your common shares at the time of the investment. There are a lot of venture capitalists and not too many good companies. If your company is attractive, you can probably find a firm that will agree to put $10 million into the company and, say, $3 million into your pocket. Then if the enterprise stumbles and ends up being sold for, say, $9 million, you won’t feel like a total idiot.

Everyone on the Board should have held Profit-and-Loss ResponsibilityThe typical white collar worker gets the job by having the right credentials and connections and then gets ahead by pleasing his or her boss. This worker might have a fancy education, a fancy suit, a smooth demeanor, and a political sophistication, but know nothing about making a profit or pleasing customers. The shareholders want profits, but the employee wants a raise and a promotion, things that can be most easily obtained by sucking up to the boss. It is very difficult to refocus one of these middle managers to think about customers and profits instead. Once the employee psychology sets in, it seems to be more or less permanent.

For your Board of Directors you need folks who are actual business people. A business person is one who has held profit-and-loss responsibility (“P&L” on their resume). P&L responsibility means that the person was in a position to determine the total profit earned by a company or a division and received compensation based on that profit, not based on what his or her manager thought.

Better someone who was the manager of a McDonald’s restaurant or a roadside shop in Hyderabad than an impressive former management consultant or middle manager from a big company. The Board makes important decisions and the directors need to have an intuitive feeling for what is going to make the customers happy and get them to keep coming back and paying. Membership on the Board should be limited to those who have founded companies, run companies, or held P&L responsibility in a division of a larger company.

Don’t be in a Rush to Hire Top ManagersIf you’re reading this, you’re probably an expert technologist of some sort and perhaps you’re the CEO of your new enterprise. The most obvious step would seem to be to hire someone else to be CEO, someone with more business experience. Unfortunately, at this early stage of your company you’re not likely to attract any good managers. You might have a good idea. You might have a good technology. You might have a good group of engineers. You do not have a good business. A good business has customers, revenue, and profits. The best managers are attracted to good businesses. Ask yourself “If someone were any good as a manager, why would he want to manage my company, which has almost no resources to deploy, when he could instead manage a division of General Electric?”
It is always easy to hire more of the kind of stars that you already have. A company that revolves around great salespeople and has a few on board already will find it easy to hire more great salespeople. A company that revolves around Stanford-educated superstar engineers will find it easy to hire more Stanford-educated superstar engineers. Just because the smartest guy you knew from grad school wants to work with you at your new company, don’t be deceived into thinking that a competent manager will find your enterprise attractive. Business people will approach you wanting to get involved. Mostly these will be older guys who were discarded by their Fortune 500 employers and maybe some young guys who couldn’t get jobs at GE.

Larry and Sergei had to run Google, the fastest growing company in the history of the world, themselves for about three years before it was successful enough to attract a competent CEO. Bill Gates ran Microsoft for more than twenty years before his successor, Steve Ballmer, who had worked at Microsoft nearly the entire time, was adequately trained to take over the reins.

For an organization with tremendous institutional history and stability, bringing in an outsider at the top might be the only way to effect some needed change. That’s why you sometimes see the Fortune 500 bringing in outsiders and the American people often vote for an outside CEO to head up the Federal Government. An organization that has been recently and rapidly assembled, however, is very fragile and bringing in an outside CEO is tremendously risky. Much better to copy Bill Gates and bring in a COO then promote him or her to CEO when the individual has learned enough about the organization and vice versa.
Be wary whenever interviewing someone who isn’t like you. You probably don’t know how to evaluate them. They probably aren’t very good, otherwise they wouldn’t be interested in your tiny little enterprise. Use your network of Board members and top business executives to evaluate management candidates rather than relying on your own judgement and enthusiasm.

Leave a Comment

lesson form open source revolution


Lately companies have been paying more attention to open source. Ten years ago there seemed a real danger Microsoft would extend its monopoly to servers. It seems safe to say now that open source has prevented that. A recent survey found 52% of companies are replacing Windows servers with Linux servers. [1]More significant, I think, is which 52% they are. At this point, anyone proposing to run Windows on servers should be prepared to explain what they know about servers that Google, Yahoo, and Amazon don’t.But the biggest thing business has to learn from open source is not about Linux or Firefox, but about the forces that produced them. Ultimately these will affect a lot more than what software you use.We may be able to get a fix on these underlying forces by triangulating from open source and blogging. As you’ve probably noticed, they have a lot in common.Like open source, blogging is something people do themselves, for free, because they enjoy it. Like open source hackers, bloggers compete with people working for money, and often win. The method of ensuring quality is also the same: Darwinian. Companies ensure quality through rules to prevent employees from screwing up. But you don’t need that when the audience can communicate with one another. People just produce whatever they want; the good stuff spreads, and the bad gets ignored. And in both cases, feedback from the audience improves the best work.Another thing blogging and open source have in common is the Web. People have always been willing to do great work for free, but before the Web it was harder to reach an audience or collaborate on projects.AmateursI think the most important of the new principles business has to learn is that people work a lot harder on stuff they like. Well, that’s news to no one. So how can I claim business has to learn it? When I say business doesn’t know this, I mean the structure of business doesn’t reflect it.Business still reflects an older model, exemplified by the French word for working: travailler. It has an English cousin, travail, and what it means is torture. [2]This turns out not to be the last word on work, however. As societies get richer, they learn something about work that’s a lot like what they learn about diet. We know now that the healthiest diet is the one our peasant ancestors were forced to eat because they were poor. Like rich food, idleness only seems desirable when you don’t get enough of it. I think we were designed to work, just as we were designed to eat a certain amount of fiber, and we feel bad if we don’t.There’s a name for people who work for the love of it: amateurs. The word now has such bad connotations that we forget its etymology, though it’s staring us in the face. “Amateur” was originally rather a complimentary word. But the thing to be in the twentieth century was professional, which amateurs, by definition, are not.That’s why the business world was so surprised by one lesson from open source: that people working for love often surpass those working for money. Users don’t switch from Explorer to Firefox because they want to hack the source. They switch because it’s a better browser.It’s not that Microsoft isn’t trying. They know controlling the browser is one of the keys to retaining their monopoly. The problem is the same they face in operating systems: they can’t pay people enough to build something better than a group of inspired hackers will build for free.I suspect professionalism was always overrated– not just in the literal sense of working for money, but also connotations like formality and detachment. Inconceivable as it would have seemed in, say, 1970, I think professionalism was largely a fashion, driven by conditions that happened to exist in the twentieth century.One of the most powerful of those was the existence of “channels.” Revealingly, the same term was used for both products and information: there were distribution channels, and TV and radio channels.It was the narrowness of such channels that made professionals seem so superior to amateurs. There were only a few jobs as professional journalists, for example, so competition ensured the average journalist was fairly good. Whereas anyone can express opinions about current events in a bar. And so the average person expressing his opinions in a bar sounds like an idiot compared to a journalist writing about the subject.On the Web, the barrier for publishing your ideas is even lower. You don’t have to buy a drink, and they even let kids in. Millions of people are publishing online, and the average level of what they’re writing, as you might expect, is not very good. This has led some in the media to conclude that blogs don’t present much of a threat– that blogs are just a fad.Actually, the fad is the word “blog,” at least the way the print media now use it. What they mean by “blogger” is not someone who publishes in a weblog format, but anyone who publishes online. That’s going to become a problem as the Web becomes the default medium for publication. So I’d like to suggest an alternative word for someone who publishes online. How about “writer?”Those in the print media who dismiss the writing online because of its low average quality are missing an important point: no one reads the average blog. In the old world of channels, it meant something to talk about average quality, because that’s what you were getting whether you liked it or not. But now you can read any writer you want. So the average quality of writing online isn’t what the print media are competing against. They’re competing against the best writing online. And, like Microsoft, they’re losing.I know that from my own experience as a reader. Though most print publications are online, I probably read two or three articles on individual people’s sites for every one I read on the site of a newspaper or magazine.And when I read, say, New York Times stories, I never reach them through the Times front page. Most I find through aggregators like Google News or Slashdot or Delicious. Aggregators show how much better you can do than the channel. The New York Times front page is a list of articles written by people who work for the New York Times. Delicious is a list of articles that are interesting. And it’s only now that you can see the two side by side that you notice how little overlap there is.Most articles in the print media are boring. For example, the president notices that a majority of voters now think invading Iraq was a mistake, so he makes an address to the nation to drum up support. Where is the man bites dog in that? I didn’t hear the speech, but I could probably tell you exactly what he said. A speech like that is, in the most literal sense, not news: there is nothing new in it. [3]Nor is there anything new, except the names and places, in most “news” about things going wrong. A child is abducted; there’s a tornado; a ferry sinks; someone gets bitten by a shark; a small plane crashes. And what do you learn about the world from these stories? Absolutely nothing. They’re outlying data points; what makes them gripping also makes them irrelevant.As in software, when professionals produce such crap, it’s not surprising if amateurs can do better. Live by the channel, die by the channel: if you depend on an oligopoly, you sink into bad habits that are hard to overcome when you suddenly get competition. [4]WorkplacesAnother thing blogs and open source software have in common is that they’re often made by people working at home. That may not seem surprising. But it should be. It’s the architectural equivalent of a home-made aircraft shooting down an F-18. Companies spend millions to build office buildings for a single purpose: to be a place to work. And yet people working in their own homes, which aren’t even designed to be workplaces, end up being more productive.This proves something a lot of us have suspected. The average office is a miserable place to get work done. And a lot of what makes offices bad are the very qualities we associate with professionalism. The sterility of offices is supposed to suggest efficiency. But suggesting efficiency is a different thing from actually being efficient.The atmosphere of the average workplace is to productivity what flames painted on the side of a car are to speed. And it’s not just the way offices look that’s bleak. The way people act is just as bad.Things are different in a startup. Often as not a startup begins in an apartment. Instead of matching beige cubicles they have an assortment of furniture they bought used. They work odd hours, wearing the most casual of clothing. They look at whatever they want online without worrying whether it’s “work safe.” The cheery, bland language of the office is replaced by wicked humor. And you know what? The company at this stage is probably the most productive it’s ever going to be.Maybe it’s not a coincidence. Maybe some aspects of professionalism are actually a net lose.To me the most demoralizing aspect of the traditional office is that you’re supposed to be there at certain times. There are usually a few people in a company who really have to, but the reason most employees work fixed hours is that the company can’t measure their productivity.The basic idea behind office hours is that if you can’t make people work, you can at least prevent them from having fun. If employees have to be in the building a certain number of hours a day, and are forbidden to do non-work things while there, then they must be working. In theory. In practice they spend a lot of their time in a no-man’s land, where they’re neither working nor having fun.If you could measure how much work people did, many companies wouldn’t need any fixed workday. You could just say: this is what you have to do. Do it whenever you like, wherever you like. If your work requires you to talk to other people in the company, then you may need to be here a certain amount. Otherwise we don’t care.That may seem utopian, but it’s what we told people who came to work for our company. There were no fixed office hours. I never showed up before 11 in the morning. But we weren’t saying this to be benevolent. We were saying: if you work here we expect you to get a lot done. Don’t try to fool us just by being here a lot.The problem with the facetime model is not just that it’s demoralizing, but that the people pretending to work interrupt the ones actually working. I’m convinced the facetime model is the main reason large organizations have so many meetings. Per capita, large organizations accomplish very little. And yet all those people have to be on site at least eight hours a day. When so much time goes in one end and so little achievement comes out the other, something has to give. And meetings are the main mechanism for taking up the slack.For one year I worked at a regular nine to five job, and I remember well the strange, cozy feeling that comes over one during meetings. I was very aware, because of the novelty, that I was being paid for programming. It seemed just amazing, as if there was a machine on my desk that spat out a dollar bill every two minutes no matter what I did. Even while I was in the bathroom! But because the imaginary machine was always running, I felt I always ought to be working. And so meetings felt wonderfully relaxing. They counted as work, just like programming, but they were so much easier. All you had to do was sit and look attentive.Meetings are like an opiate with a network effect. So is email, on a smaller scale. And in addition to the direct cost in time, there’s the cost in fragmentation– breaking people’s day up into bits too small to be useful.You can see how dependent you’ve become on something by removing it suddenly. So for big companies I propose the following experiment. Set aside one day where meetings are forbidden– where everyone has to sit at their desk all day and work without interruption on things they can do without talking to anyone else. Some amount of communication is necessary in most jobs, but I’m sure many employees could find eight hours worth of stuff they could do by themselves. You could call it “Work Day.”The other problem with pretend work is that it often looks better than real work. When I’m writing or hacking I spend as much time just thinking as I do actually typing. Half the time I’m sitting drinking a cup of tea, or walking around the neighborhood. This is a critical phase– this is where ideas come from– and yet I’d feel guilty doing this in most offices, with everyone else looking busy.It’s hard to see how bad some practice is till you have something to compare it to. And that’s one reason open source, and even blogging in some cases, are so important. They show us what real work looks like.We’re funding eight new startups at the moment. A friend asked what they were doing for office space, and seemed surprised when I said we expected them to work out of whatever apartments they found to live in. But we didn’t propose that to save money. We did it because we want their software to be good. Working in crappy informal spaces is one of the things startups do right without realizing it. As soon as you get into an office, work and life start to drift apart.That is one of the key tenets of professionalism. Work and life are supposed to be separate. But that part, I’m convinced, is a mistake.Bottom-UpThe third big lesson we can learn from open source and blogging is that ideas can bubble up from the bottom, instead of flowing down from the top. Open source and blogging both work bottom-up: people make what they want, and the best stuff prevails.Does this sound familiar? It’s the principle of a market economy. Ironically, though open source and blogs are done for free, those worlds resemble market economies, while most companies, for all their talk about the value of free markets, are run internally like communist states.There are two forces that together steer design: ideas about what to do next, and the enforcement of quality. In the channel era, both flowed down from the top. For example, newspaper editors assigned stories to reporters, then edited what they wrote.Open source and blogging show us things don’t have to work that way. Ideas and even the enforcement of quality can flow bottom-up. And in both cases the results are not merely acceptable, but better. For example, open source software is more reliable precisely because it’s open source; anyone can find mistakes.The same happens with writing. As we got close to publication, I found I was very worried about the essays in Hackers & Painters that hadn’t been online. Once an essay has had a couple thousand page views I feel reasonably confident about it. But these had had literally orders of magnitude less scrutiny. It felt like releasing software without testing it.That’s what all publishing used to be like. If you got ten people to read a manuscript, you were lucky. But I’d become so used to publishing online that the old method now seemed alarmingly unreliable, like navigating by dead reckoning once you’d gotten used to a GPS.The other thing I like about publishing online is that you can write what you want and publish when you want. Earlier this year I wrote something that seemed suitable for a magazine, so I sent it to an editor I know. As I was waiting to hear back, I found to my surprise that I was hoping they’d reject it. Then I could put it online right away. If they accepted it, it wouldn’t be read by anyone for months, and in the meantime I’d have to fight word-by-word to save it from being mangled by some twenty five year old copy editor. [5]Many employees would like to build great things for the companies they work for, but more often than not management won’t let them. How many of us have heard stories of employees going to management and saying, please let us build this thing to make money for you– and the company saying no? The most famous example is probably Steve Wozniak, who originally wanted to build microcomputers for his then-employer, HP. And they turned him down. On the blunderometer, this episode ranks with IBM accepting a non-exclusive license for DOS. But I think this happens all the time. We just don’t hear about it usually, because to prove yourself right you have to quit and start your own company, like Wozniak did.StartupsSo these, I think, are the three big lessons open source and blogging have to teach business: (1) that people work harder on stuff they like, (2) that the standard office environment is very unproductive, and (3) that bottom-up often works better than top-down.I can imagine managers at this point saying: what is this guy talking about? What good does it do me to know that my programmers would be more productive working at home on their own projects? I need their asses in here working on version 3.2 of our software, or we’re never going to make the release date.And it’s true, the benefit that specific manager could derive from the forces I’ve described is near zero. When I say business can learn from open source, I don’t mean any specific business can. I mean business can learn about new conditions the same way a gene pool does. I’m not claiming companies can get smarter, just that dumb ones will die.So what will business look like when it has assimilated the lessons of open source and blogging? I think the big obstacle preventing us from seeing the future of business is the assumption that people working for you have to be employees. But think about what’s going on underneath: the company has some money, and they pay it to the employee in the hope that he’ll make something worth more than they paid him. Well, there are other ways to arrange that relationship. Instead of paying the guy money as a salary, why not give it to him as investment? Then instead of coming to your office to work on your projects, he can work wherever he wants on projects of his own.Because few of us know any alternative, we have no idea how much better we could do than the traditional employer-employee relationship. Such customs evolve with glacial slowness. Our employer-employee relationship still retains a big chunk of master-servant DNA. [6]I dislike being on either end of it. I’ll work my ass off for a customer, but I resent being told what to do by a boss. And being a boss is also horribly frustrating; half the time it’s easier just to do stuff yourself than to get someone else to do it for you. I’d rather do almost anything than give or receive a performance review.On top of its unpromising origins, employment has accumulated a lot of cruft over the years. The list of what you can’t ask in job interviews is now so long that for convenience I assume it’s infinite. Within the office you now have to walk on eggshells lest anyone say or do something that makes the company prey to a lawsuit. And God help you if you fire anyone.Nothing shows more clearly that employment is not an ordinary economic relationship than companies being sued for firing people. In any purely economic relationship you’re free to do what you want. If you want to stop buying steel pipe from one supplier and start buying it from another, you don’t have to explain why. No one can accuse you of unjustly switching pipe suppliers. Justice implies some kind of paternal obligation that isn’t there in transactions between equals.Most of the legal restrictions on employers are intended to protect employees. But you can’t have action without an equal and opposite reaction. You can’t expect employers to have some kind of paternal responsibility toward employees without putting employees in the position of children. And that seems a bad road to go down.Next time you’re in a moderately large city, drop by the main post office and watch the body language of the people working there. They have the same sullen resentment as children made to do something they don’t want to. Their union has exacted pay increases and work restrictions that would have been the envy of previous generations of postal workers, and yet they don’t seem any happier for it. It’s demoralizing to be on the receiving end of a paternalistic relationship, no matter how cozy the terms. Just ask any teenager.I see the disadvantages of the employer-employee relationship because I’ve been on both sides of a better one: the investor-founder relationship. I wouldn’t claim it’s painless. When I was running a startup, the thought of our investors used to keep me up at night. And now that I’m an investor, the thought of our startups keeps me up at night. All the pain of whatever problem you’re trying to solve is still there. But the pain hurts less when it isn’t mixed with resentment.I had the misfortune to participate in what amounted to a controlled experiment to prove that. After Yahoo bought our startup I went to work for them. I was doing exactly the same work, except with bosses. And to my horror I started acting like a child. The situation pushed buttons I’d forgotten I had.The big advantage of investment over employment, as the examples of open source and blogging suggest, is that people working on projects of their own are enormously more productive. And a startup is a project of one’s own in two senses, both of them important: it’s creatively one’s own, and also economically ones’s own.Google is a rare example of a big company in tune with the forces I’ve described. They’ve tried hard to make their offices less sterile than the usual cube farm. They give employees who do great work large grants of stock to simulate the rewards of a startup. They even let hackers spend 20% of their time on their own projects.Why not let people spend 100% of their time on their own projects, and instead of trying to approximate the value of what they create, give them the actual market value? Impossible? That is in fact what venture capitalists do.So am I claiming that no one is going to be an employee anymore– that everyone should go and start a startup? Of course not. But more people could do it than do it now. At the moment, even the smartest students leave school thinking they have to get a job. Actually what they need to do is make something valuable. A job is one way to do that, but the more ambitious ones will ordinarily be better off taking money from an investor than an employer.Hackers tend to think business is for MBAs. But business administration is not what you’re doing in a startup. What you’re doing is business creation. And the first phase of that is mostly product creation– that is, hacking. That’s the hard part. It’s a lot harder to create something people love than to take something people love and figure out how to make money from it.Another thing that keeps people away from starting startups is the risk. Someone with kids and a mortgage should think twice before doing it. But most young hackers have neither.And as the example of open source and blogging suggests, you’ll enjoy it more, even if you fail. You’ll be working on your own thing, instead of going to some office and doing what you’re told. There may be more pain in your own company, but it won’t hurt as much.That may be the greatest effect, in the long run, of the forces underlying open source and blogging: finally ditching the old paternalistic employer-employee relationship, and replacing it with a purely economic one, between equals.

Leave a Comment

how to startup

(This essay is derived from a talk at the Harvard Computer Society.

You need three things to create a successful startup:

to start with good people
to make something customers actually want,
and to spend as little money as possible.

Most startups that fail do it because they fail at one of these. A startup that does all three will probably succeed.And that’s kind of exciting, when you think about it, because all three are doable. Hard, but doable. And since a startup that succeeds ordinarily makes its founders rich, that implies getting rich is doable too. Hard, but doable.If there is one message I’d like to get across about startups, that’s it. There is no magically difficult step that requires brilliance to solve.

The Idea
In particular, you don’t need a brilliant idea to start a startup around. The way a startup makes money is to offer people better technology than they have now. But what people have now is often so bad that it doesn’t take brilliance to do better.Google’s plan, for example, was simply to create a search site that didn’t suck. They had three new ideas: index more of the Web, use links to rank search results, and have clean, simple web pages with unintrusive keyword-based ads. Above all, they were determined to make a site that was good to use. No doubt there are great technical tricks within Google, but the overall plan was straightforward. And while they probably have bigger ambitions now, this alone brings them a billion dollars a year. [1]There are plenty of other areas that are just as backward as search was before Google. I can think of several heuristics for generating ideas for startups, but most reduce to this: look at something people are trying to do, and figure out how to do it in a way that doesn’t suck.For example, dating sites currently suck far worse than search did before Google. They all use the same simple-minded model. They seem to have approached the problem by thinking about how to do database matches instead of how dating works in the real world. An undergrad could build something better as a class project. And yet there’s a lot of money at stake. Online dating is a valuable business now, and it might be worth a hundred times as much if it worked.An idea for a startup, however, is only a beginning. A lot of would-be startup founders think the key to the whole process is the initial idea, and from that point all you have to do is execute. Venture capitalists know better. If you go to VC firms with a brilliant idea that you’ll tell them about if they sign a nondisclosure agreement, most will tell you to get lost. That shows how much a mere idea is worth. The market price is less than the inconvenience of signing an NDA.Another sign of how little the initial idea is worth is the number of startups that change their plan en route. Microsoft’s original plan was to make money selling programming languages, of all things. Their current business model didn’t occur to them until IBM dropped it in their lap five years later.Ideas for startups are worth something, certainly, but the trouble is, they’re not transferrable. They’re not something you could hand to someone else to execute. Their value is mainly as starting points: as questions for the people who had them to continue thinking about.What matters is not ideas, but the people who have them. Good people can fix bad ideas, but good ideas can’t save bad people.

People

What do I mean by good people? One of the best tricks I learned during our startup was a rule for deciding who to hire. Could you describe the person as an animal? It might be hard to translate that into another language, but I think everyone in the US knows what it means. It means someone who takes their work a little too seriously; someone who does what they do so well that they pass right through professional and cross over into obsessive.What it means specifically depends on the job: a salesperson who just won’t take no for an answer; a hacker who will stay up till 4:00 AM rather than go to bed leaving code with a bug in it; a PR person who will cold-call New York Times reporters on their cell phones; a graphic designer who feels physical pain when something is two millimeters out of place.Almost everyone who worked for us was an animal at what they did. The woman in charge of sales was so tenacious that I used to feel sorry for potential customers on the phone with her. You could sense them squirming on the hook, but you knew there would be no rest for them till they’d signed up.If you think about people you know, you’ll find the animal test is easy to apply. Call the person’s image to mind and imagine the sentence “so-and-so is an animal.” If you laugh, they’re not. You don’t need or perhaps even want this quality in big companies, but you need it in a startup.For programmers we had three additional tests. Was the person genuinely smart? If so, could they actually get things done? And finally, since a few good hackers have unbearable personalities, could we stand to have them around?That last test filters out surprisingly few people. We could bear any amount of nerdiness if someone was truly smart. What we couldn’t stand were people with a lot of attitude. But most of those weren’t truly smart, so our third test was largely a restatement of the first.When nerds are unbearable it’s usually because they’re trying too hard to seem smart. But the smarter they are, the less pressure they feel to act smart. So as a rule you can recognize genuinely smart people by their ability to say things like “I don’t know,” “Maybe you’re right,” and “I don’t understand x well enough.”This technique doesn’t always work, because people can be influenced by their environment. In the MIT CS department, there seems to be a tradition of acting like a brusque know-it-all. I’m told it derives ultimately from Marvin Minsky, in the same way the classic airline pilot manner is said to derive from Chuck Yeager. Even genuinely smart people start to act this way there, so you have to make allowances.It helped us to have Robert Morris, who is one of the readiest to say “I don’t know” of anyone I’ve met. (At least, he was before he became a professor at MIT.) No one dared put on attitude around Robert, because he was obviously smarter than they were and yet had zero attitude himself.Like most startups, ours began with a group of friends, and it was through personal contacts that we got most of the people we hired. This is a crucial difference between startups and big companies. Being friends with someone for even a couple days will tell you more than companies could ever learn in interviews. [2]It’s no coincidence that startups start around universities, because that’s where smart people meet. It’s not what people learn in classes at MIT and Stanford that has made technology companies spring up around them. They could sing campfire songs in the classes so long as admissions worked the same.If you start a startup, there’s a good chance it will be with people you know from college or grad school. So in theory you ought to try to make friends with as many smart people as you can in school, right? Well, no. Don’t make a conscious effort to schmooze; that doesn’t work well with hackers.What you should do in college is work on your own projects. Hackers should do this even if they don’t plan to start startups, because it’s the only real way to learn how to program. In some cases you may collaborate with other students, and this is the best way to get to know good hackers. The project may even grow into a startup. But once again, I wouldn’t aim too directly at either target. Don’t force things; just work on stuff you like with people you like.Ideally you want between two and four founders. It would be hard to start with just one. One person would find the moral weight of starting a company hard to bear. Even Bill Gates, who seems to be able to bear a good deal of moral weight, had to have a co-founder. But you don’t want so many founders that the company starts to look like a group photo. Partly because you don’t need a lot of people at first, but mainly because the more founders you have, the worse disagreements you’ll have. When there are just two or three founders, you know you have to resolve disputes immediately or perish. If there are seven or eight, disagreements can linger and harden into factions. You don’t want mere voting; you need unanimity.In a technology startup, which most startups are, the founders should include technical people. During the Internet Bubble there were a number of startups founded by business people who then went looking for hackers to create their product for them. This doesn’t work well. Business people are bad at deciding what to do with technology, because they don’t know what the options are, or which kinds of problems are hard and which are easy. And when business people try to hire hackers, they can’t tell which ones are good. Even other hackers have a hard time doing that. For business people it’s roulette.Do the founders of a startup have to include business people? That depends. We thought so when we started ours, and we asked several people who were said to know about this mysterious thing called “business” if they would be the president. But they all said no, so I had to do it myself. And what I discovered was that business was no great mystery. It’s not something like physics or medicine that requires extensive study. You just try to get people to pay you for stuff.I think the reason I made such a mystery of business was that I was disgusted by the idea of doing it. I wanted to work in the pure, intellectual world of software, not deal with customers’ mundane problems. People who don’t want to get dragged into some kind of work often develop a protective incompetence at it. Paul Erdos was particularly good at this. By seeming unable even to cut a grapefruit in half (let alone go to the store and buy one), he forced other people to do such things for him, leaving all his time free for math. Erdos was an extreme case, but most husbands use the same trick to some degree.Once I was forced to discard my protective incompetence, I found that business was neither so hard nor so boring as I feared. There are esoteric areas of business that are quite hard, like tax law or the pricing of derivatives, but you don’t need to know about those in a startup. All you need to know about business to run a startup are commonsense things people knew before there were business schools, or even universities.If you work your way down the Forbes 400 making an x next to the name of each person with an MBA, you’ll learn something important about business school. You don’t even hit an MBA till number 22, Phil Knight, the CEO of Nike. There are only four MBAs in the top 50. What you notice in the Forbes 400 are a lot of people with technical backgrounds. Bill Gates, Steve Jobs, Larry Ellison, Michael Dell, Jeff Bezos, Gordon Moore. The rulers of the technology business tend to come from technology, not business. So if you want to invest two years in something that will help you succeed in business, the evidence suggests you’d do better to learn how to hack than get an MBA. [3]There is one reason you might want to include business people in a startup, though: because you have to have at least one person willing and able to focus on what customers want. Some believe only business people can do this– that hackers can implement software, but not design it. That’s nonsense. There’s nothing about knowing how to program that prevents hackers from understanding users, or about not knowing how to program that magically enables business people to understand them.If you can’t understand users, however, you should either learn how or find a co-founder who can. That is the single most important issue for technology startups, and the rock that sinks more of them than anything else.

What Customers Want

It’s not just startups that have to worry about this. I think most businesses that fail do it because they don’t give customers what they want. Look at restaurants. A large percentage fail, about a quarter in the first year. But can you think of one restaurant that had really good food and went out of business?Restaurants with great food seem to prosper no matter what. A restaurant with great food can be expensive, crowded, noisy, dingy, out of the way, and even have bad service, and people will keep coming. It’s true that a restaurant with mediocre food can sometimes attract customers through gimmicks. But that approach is very risky. It’s more straightforward just to make the food good.It’s the same with technology. You hear all kinds of reasons why startups fail. But can you think of one that had a massively popular product and still failed?In nearly every failed startup, the real problem was that customers didn’t want the product. For most, the cause of death is listed as “ran out of funding,” but that’s only the immediate cause. Why couldn’t they get more funding? Probably because the product was a dog, or never seemed likely to be done, or both.When I was trying to think of the things every startup needed to do, I almost included a fourth: get a version 1 out as soon as you can. But I decided not to, because that’s implicit in making something customers want. The only way to make something customers want is to get a prototype in front of them and refine it based on their reactions.The other approach is what I call the “Hail Mary” strategy. You make elaborate plans for a product, hire a team of engineers to develop it (people who do this tend to use the term “engineer” for hackers), and then find after a year that you’ve spent two million dollars to develop something no one wants. This was not uncommon during the Bubble, especially in companies run by business types, who thought of software development as something terrifying that therefore had to be carefully planned.We never even considered that approach. As a Lisp hacker, I come from the tradition of rapid prototyping. I would not claim (at least, not here) that this is the right way to write every program, but it’s certainly the right way to write software for a startup. In a startup, your initial plans are almost certain to be wrong in some way, and your first priority should be to figure out where. The only way to do that is to try implementing them.Like most startups, we changed our plan on the fly. At first we expected our customers to be Web consultants. But it turned out they didn’t like us, because our software was easy to use and we hosted the site. It would be too easy for clients to fire them. We also thought we’d be able to sign up a lot of catalog companies, because selling online was a natural extension of their existing business. But in 1996 that was a hard sell. The middle managers we talked to at catalog companies saw the Web not as an opportunity, but as something that meant more work for them.We did get a few of the more adventurous catalog companies. Among them was Frederick’s of Hollywood, which gave us valuable experience dealing with heavy loads on our servers. But most of our users were small, individual merchants who saw the Web as an opportunity to build a business. Some had retail stores, but many only existed online. And so we changed direction to focus on these users. Instead of concentrating on the features Web consultants and catalog companies would want, we worked to make the software easy to use.I learned something valuable from that. It’s worth trying very, very hard to make technology easy to use. Hackers are so used to computers that they have no idea how horrifying software seems to normal people. Stephen Hawking’s editor told him that every equation he included in his book would cut sales in half. When you work on making technology easier to use, you’re riding that curve up instead of down. A 10% improvement in ease of use doesn’t just increase your sales 10%. It’s more likely to double your sales.How do you figure out what customers want? Watch them. One of the best places to do this was at trade shows. Trade shows didn’t pay as a way of getting new customers, but they were worth it as market research. We didn’t just give canned presentations at trade shows. We used to show people how to build real, working stores. Which meant we got to watch as they used our software, and talk to them about what they needed.No matter what kind of startup you start, it will probably be a stretch for you, the founders, to understand what users want. The only kind of software you can build without studying users is the sort for which you are the typical user. But this is just the kind that tends to be open source: operating systems, programming languages, editors, and so on. So if you’re developing technology for money, you’re probably not going to be developing it for people like you. Indeed, you can use this as a way to generate ideas for startups: what do people who are not like you want from technology?When most people think of startups, they think of companies like Apple or Google. Everyone knows these, because they’re big consumer brands. But for every startup like that, there are twenty more that operate in niche markets or live quietly down in the infrastructure. So if you start a successful startup, odds are you’ll start one of those.Another way to say that is, if you try to start the kind of startup that has to be a big consumer brand, the odds against succeeding are steeper. The best odds are in niche markets. Since startups make money by offering people something better than they had before, the best opportunities are where things suck most. And it would be hard to find a place where things suck more than in corporate IT departments. You would not believe the amount of money companies spend on software, and the crap they get in return. This imbalance equals opportunity.If you want ideas for startups, one of the most valuable things you could do is find a middle-sized non-technology company and spend a couple weeks just watching what they do with computers. Most good hackers have no more idea of the horrors perpetrated in these places than rich Americans do of what goes on in Brazilian slums.Start by writing software for smaller companies, because it’s easier to sell to them. It’s worth so much to sell stuff to big companies that the people selling them the crap they currently use spend a lot of time and money to do it. And while you can outhack Oracle with one frontal lobe tied behind your back, you can’t outsell an Oracle salesman. So if you want to win through better technology, aim at smaller customers. [4]They’re the more strategically valuable part of the market anyway. In technology, the low end always eats the high end. It’s easier to make an inexpensive product more powerful than to make a powerful product cheaper. So the products that start as cheap, simple options tend to gradually grow more powerful till, like water rising in a room, they squash the “high-end” products against the ceiling. Sun did this to mainframes, and Intel is doing it to Sun. Microsoft Word did it to desktop publishing software like Interleaf and Framemaker. Mass-market digital cameras are doing it to the expensive models made for professionals. Avid did it to the manufacturers of specialized video editing systems, and now Apple is doing it to Avid. Henry Ford did it to the car makers that preceded him. If you build the simple, inexpensive option, you’ll not only find it easier to sell at first, but you’ll also be in the best position to conquer the rest of the market.It’s very dangerous to let anyone fly under you. If you have the cheapest, easiest product, you’ll own the low end. And if you don’t, you’re in the crosshairs of whoever does.Raising MoneyTo make all this happen, you’re going to need money. Some startups have been self-funding– Microsoft for example– but most aren’t. I think it’s wise to take money from investors. To be self-funding, you have to start as a consulting company, and it’s hard to switch from that to a product company.Financially, a startup is like a pass/fail course. The way to get rich from a startup is to maximize the company’s chances of succeeding, not to maximize the amount of stock you retain. So if you can trade stock for something that improves your odds, it’s probably a smart move.To most hackers, getting investors seems like a terrifying and mysterious process. Actually it’s merely tedious. I’ll try to give an outline of how it works.The first thing you’ll need is a few tens of thousands of dollars to pay your expenses while you develop a prototype. This is called seed capital. Because so little money is involved, raising seed capital is comparatively easy– at least in the sense of getting a quick yes or no.Usually you get seed money from individual rich people called “angels.” Often they’re people who themselves got rich from technology. At the seed stage, investors don’t expect you to have an elaborate business plan. Most know that they’re supposed to decide quickly. It’s not unusual to get a check within a week based on a half-page agreement.We started Viaweb with $10,000 of seed money from our friend Julian. But he gave us a lot more than money. He’s a former CEO and also a corporate lawyer, so he gave us a lot of valuable advice about business, and also did all the legal work of getting us set up as a company. Plus he introduced us to one of the two angel investors who supplied our next round of funding.Some angels, especially those with technology backgrounds, may be satisfied with a demo and a verbal description of what you plan to do. But many will want a copy of your business plan, if only to remind themselves what they invested in.Our angels asked for one, and looking back, I’m amazed how much worry it caused me. “Business plan” has that word “business” in it, so I figured it had to be something I’d have to read a book about business plans to write. Well, it doesn’t. At this stage, all most investors expect is a brief description of what you plan to do and how you’re going to make money from it, and the resumes of the founders. If you just sit down and write out what you’ve been saying to one another, that should be fine. It shouldn’t take more than a couple hours, and you’ll probably find that writing it all down gives you more ideas about what to do.For the angel to have someone to make the check out to, you’re going to have to have some kind of company. Merely incorporating yourselves isn’t hard. The problem is, for the company to exist, you have to decide who the founders are, and how much stock they each have. If there are two founders with the same qualifications who are both equally committed to the business, that’s easy. But if you have a number of people who are expected to contribute in varying degrees, arranging the proportions of stock can be hard. And once you’ve done it, it tends to be set in stone.I have no tricks for dealing with this problem. All I can say is, try hard to do it right. I do have a rule of thumb for recognizing when you have, though. When everyone feels they’re getting a slightly bad deal, that they’re doing more than they should for the amount of stock they have, the stock is optimally apportioned.There is more to setting up a company than incorporating it, of course: insurance, business license, unemployment compensation, various things with the IRS. I’m not even sure what the list is, because we, ah, skipped all that. When we got real funding near the end of 1996, we hired a great CFO, who fixed everything retroactively. It turns out that no one comes and arrests you if you don’t do everything you’re supposed to when starting a company. And a good thing too, or a lot of startups would never get started. [5]It can be dangerous to delay turning yourself into a company, because one or more of the founders might decide to split off and start another company doing the same thing. This does happen. So when you set up the company, as well as as apportioning the stock, you should get all the founders to sign something agreeing that everyone’s ideas belong to this company, and that this company is going to be everyone’s only job.[If this were a movie, ominous music would begin here.]While you’re at it, you should ask what else they’ve signed. One of the worst things that can happen to a startup is to run into intellectual property problems. We did, and it came closer to killing us than any competitor ever did.As we were in the middle of getting bought, we discovered that one of our people had, early on, been bound by an agreement that said all his ideas belonged to the giant company that was paying for him to go to grad school. In theory, that could have meant someone else owned big chunks of our software. So the acquisition came to a screeching halt while we tried to sort this out. The problem was, since we’d been about to be acquired, we’d allowed ourselves to run low on cash. Now we needed to raise more to keep going. But it’s hard to raise money with an IP cloud over your head, because investors can’t judge how serious it is.Our existing investors, knowing that we needed money and had nowhere else to get it, at this point attempted certain gambits which I will not describe in detail, except to remind readers that the word “angel” is a metaphor. The founders thereupon proposed to walk away from the company, after giving the investors a brief tutorial on how to administer the servers themselves. And while this was happening, the acquirers used the delay as an excuse to welch on the deal.Miraculously it all turned out ok. The investors backed down; we did another round of funding at a reasonable valuation; the giant company finally gave us a piece of paper saying they didn’t own our software; and six months later we were bought by Yahoo for much more than the earlier acquirer had agreed to pay. So we were happy in the end, though the experience probably took several years off my life.Don’t do what we did. Before you consummate a startup, ask everyone about their previous IP history.Once you’ve got a company set up, it may seem presumptuous to go knocking on the doors of rich people and asking them to invest tens of thousands of dollars in something that is really just a bunch of guys with some ideas. But when you look at it from the rich people’s point of view, the picture is more encouraging. Most rich people are looking for good investments. If you really think you have a chance of succeeding, you’re doing them a favor by letting them invest. Mixed with any annoyance they might feel about being approached will be the thought: are these guys the next Google?Usually angels are financially equivalent to founders. They get the same kind of stock and get diluted the same amount in future rounds. How much stock should they get? That depends on how ambitious you feel. When you offer x percent of your company for y dollars, you’re implicitly claiming a certain value for the whole company. Venture investments are usually described in terms of that number. If you give an investor new shares equal to 5% of those already outstanding in return for $100,000, then you’ve done the deal at a pre-money valuation of $2 million.How do you decide what the value of the company should be? There is no rational way. At this stage the company is just a bet. I didn’t realize that when we were raising money. Julian thought we ought to value the company at several million dollars. I thought it was preposterous to claim that a couple thousand lines of code, which was all we had at the time, were worth several million dollars. Eventually we settled on one millon, because Julian said no one would invest in a company with a valuation any lower. [6]What I didn’t grasp at the time was that the valuation wasn’t just the value of the code we’d written so far. It was also the value of our ideas, which turned out to be right, and of all the future work we’d do, which turned out to be a lot.The next round of funding is the one in which you might deal with actual venture capital firms. But don’t wait till you’ve burned through your last round of funding to start approaching them. VCs are slow to make up their minds. They can take months. You don’t want to be running out of money while you’re trying to negotiate with them.Getting money from an actual VC firm is a bigger deal than getting money from angels. The amounts of money involved are larger, millions usually. So the deals take longer, dilute you more, and impose more onerous conditions.Sometimes the VCs want to install a new CEO of their own choosing. Usually the claim is that you need someone mature and experienced, with a business background. Maybe in some cases this is true. And yet Bill Gates was young and inexperienced and had no business background, and he seems to have done ok. Steve Jobs got booted out of his own company by someone mature and experienced, with a business background, who then proceeded to ruin the company. So I think people who are mature and experienced, with a business background, may be overrated. We used to call these guys “newscasters,” because they had neat hair and spoke in deep, confident voices, and generally didn’t know much more than they read on the teleprompter.We talked to a number of VCs, but eventually we ended up financing our startup entirely with angel money. The main reason was that we feared a brand-name VC firm would stick us with a newscaster as part of the deal. That might have been ok if he was content to limit himself to talking to the press, but what if he wanted to have a say in running the company? That would have led to disaster, because our software was so complex. We were a company whose whole m.o. was to win through better technology. The strategic decisions were mostly decisions about technology, and we didn’t need any help with those.This was also one reason we didn’t go public. Back in 1998 our CFO tried to talk me into it. In those days you could go public as a dogfood portal, so as a company with a real product and real revenues, we might have done well. But I feared it would have meant taking on a newscaster– someone who, as they say, “can talk Wall Street’s language.”I’m happy to see Google is bucking that trend. They didn’t talk Wall Street’s language when they did their IPO, and Wall Street didn’t buy. And now Wall Street is collectively kicking itself. They’ll pay attention next time. Wall Street learns new languages fast when money is involved.You have more leverage negotiating with VCs than you realize. The reason is other VCs. I know a number of VCs now, and when you talk to them you realize that it’s a seller’s market. Even now there is too much money chasing too few good deals.VCs form a pyramid. At the top are famous ones like Sequoia and Kleiner Perkins, but beneath those are a huge number you’ve never heard of. What they all have in common is that a dollar from them is worth one dollar. Most VCs will tell you that they don’t just provide money, but connections and advice. If you’re talking to Vinod Khosla or John Doerr or Mike Moritz, this is true. But such advice and connections can come very expensive. And as you go down the food chain the VCs get rapidly dumber. A few steps down from the top you’re basically talking to bankers who’ve picked up a few new vocabulary words from reading Wired. (Does your product use XML?) So I’d advise you to be skeptical about claims of experience and connections. Basically, a VC is a source of money. I’d be inclined to go with whoever offered the most money the soonest with the least strings attached.You may wonder how much to tell VCs. And you should, because some of them may one day be funding your competitors. I think the best plan is not to be overtly secretive, but not to tell them everything either. After all, as most VCs say, they’re more interested in the people than the ideas. The main reason they want to talk about your idea is to judge you, not the idea. So as long as you seem like you know what you’re doing, you can probably keep a few things back from them. [7]Talk to as many VCs as you can, even if you don’t want their money, because a) they may be on the board of someone who will buy you, and b) if you seem impressive, they’ll be discouraged from investing in your competitors. The most efficient way to reach VCs, especially if you only want them to know about you and don’t want their money, is at the conferences that are occasionally organized for startups to present to them.Not Spending ItWhen and if you get an infusion of real money from investors, what should you do with it? Not spend it, that’s what. In nearly every startup that fails, the proximate cause is running out of money. Usually there is something deeper wrong. But even a proximate cause of death is worth trying hard to avoid.During the Bubble many startups tried to “get big fast.” Ideally this meant getting a lot of customers fast. But it was easy for the meaning to slide over into hiring a lot of people fast.Of the two versions, the one where you get a lot of customers fast is of course preferable. But even that may be overrated. The idea is to get there first and get all the users, leaving none for competitors. But I think in most businesses the advantages of being first to market are not so overwhelmingly great. Google is again a case in point. When they appeared it seemed as if search was a mature market, dominated by big players who’d spent millions to build their brands: Yahoo, Lycos, Excite, Infoseek, Altavista, Inktomi. Surely 1998 was a little late to arrive at the party.But as the founders of Google knew, brand is worth next to nothing in the search business. You can come along at any point and make something better, and users will gradually seep over to you. As if to emphasize the point, Google never did any advertising. They’re like dealers; they sell the stuff, but they know better than to use it themselves.The competitors Google buried would have done better to spend those millions improving their software. Future startups should learn from that mistake. Unless you’re in a market where products are as undifferentiated as cigarettes or vodka or laundry detergent, spending a lot on brand advertising is a sign of breakage. And few if any Web businesses are so undifferentiated. The dating sites are running big ad campaigns right now, which is all the more evidence they’re ripe for the picking. (Fee, fie, fo, fum, I smell a company run by marketing guys.)We were compelled by circumstances to grow slowly, and in retrospect it was a good thing. The founders all learned to do every job in the company. As well as writing software, I had to do sales and customer support. At sales I was not very good. I was persistent, but I didn’t have the smoothness of a good salesman. My message to potential customers was: you’d be stupid not to sell online, and if you sell online you’d be stupid to use anyone else’s software. Both statements were true, but that’s not the way to convince people.I was great at customer support though. Imagine talking to a customer support person who not only knew everything about the product, but would apologize abjectly if there was a bug, and then fix it immediately, while you were on the phone with them. Customers loved us. And we loved them, because when you’re growing slow by word of mouth, your first batch of users are the ones who were smart enough to find you by themselves. There is nothing more valuable, in the early stages of a startup, than smart users. If you listen to them, they’ll tell you exactly how to make a winning product. And not only will they give you this advice for free, they’ll pay you.We officially launched in early 1996. By the end of that year we had about 70 users. Since this was the era of “get big fast,” I worried about how small and obscure we were. But in fact we were doing exactly the right thing. Once you get big (in users or employees) it gets hard to change your product. That year was effectively a laboratory for improving our software. By the end of it, we were so far ahead of our competitors that they never had a hope of catching up. And since all the hackers had spent many hours talking to users, we understood online commerce way better than anyone else.That’s the key to success as a startup. There is nothing more important than understanding your business. You might think that anyone in a business must, ex officio, understand it. Far from it. Google’s secret weapon was simply that they understood search. I was working for Yahoo when Google appeared, and Yahoo didn’t understand search. I know because I once tried to convince the powers that be that we had to make search better, and I got in reply what was then the party line about it: that Yahoo was no longer a mere “search engine.” Search was now only a small percentage of our page views, less than one month’s growth, and now that we were established as a “media company,” or “portal,” or whatever we were, search could safely be allowed to wither and drop off, like an umbilical cord.Well, a small fraction of page views they may be, but they are an important fraction, because they are the page views that Web sessions start with. I think Yahoo gets that now.Google understands a few other things most Web companies still don’t. The most important is that you should put users before advertisers, even though the advertisers are paying and users aren’t. One of my favorite bumper stickers reads “if the people lead, the leaders will follow.” Paraphrased for the Web, this becomes “get all the users, and the advertisers will follow.” More generally, design your product to please users first, and then think about how to make money from it. If you don’t put users first, you leave a gap for competitors who do.To make something users love, you have to understand them. And the bigger you are, the harder that is. So I say “get big slow.” The slower you burn through your funding, the more time you have to learn.The other reason to spend money slowly is to encourage a culture of cheapness. That’s something Yahoo did understand. David Filo’s title was “Chief Yahoo,” but he was proud that his unofficial title was “Cheap Yahoo.” Soon after we arrived at Yahoo, we got an email from Filo, who had been crawling around our directory hierarchy, asking if it was really necessary to store so much of our data on expensive RAID drives. I was impressed by that. Yahoo’s market cap then was already in the billions, and they were still worrying about wasting a few gigs of disk space.When you get a couple million dollars from a VC firm, you tend to feel rich. It’s important to realize you’re not. A rich company is one with large revenues. This money isn’t revenue. It’s money investors have given you in the hope you’ll be able to generate revenues. So despite those millions in the bank, you’re still poor.For most startups the model should be grad student, not law firm. Aim for cool and cheap, not expensive and impressive. For us the test of whether a startup understood this was whether they had Aeron chairs. The Aeron came out during the Bubble and was very popular with startups. Especially the type, all too common then, that was like a bunch of kids playing house with money supplied by VCs. We had office chairs so cheap that the arms all fell off. This was slightly embarrassing at the time, but in retrospect the grad-studenty atmosphere of our office was another of those things we did right without knowing it.Our offices were in a wooden triple-decker in Harvard Square. It had been an apartment until about the 1970s, and there was still a claw-footed bathtub in the bathroom. It must once have been inhabited by someone fairly eccentric, because a lot of the chinks in the walls were stuffed with aluminum foil, as if to protect against cosmic rays. When eminent visitors came to see us, we were a bit sheepish about the low production values. But in fact that place was the perfect space for a startup. We felt like our role was to be impudent underdogs instead of corporate stuffed shirts, and that is exactly the spirit you want.An apartment is also the right kind of place for developing software. Cube farms suck for that, as you’ve probably discovered if you’ve tried it. Ever notice how much easier it is to hack at home than at work? So why not make work more like home?When you’re looking for space for a startup, don’t feel that it has to look professional. Professional means doing good work, not elevators and glass walls. I’d advise most startups to avoid corporate space at first and just rent an apartment. You want to live at the office in a startup, so why not have a place designed to be lived in as your office?Besides being cheaper and better to work in, apartments tend to be in better locations than office buildings. And for a startup location is very important. The key to productivity is for people to come back to work after dinner. Those hours after the phone stops ringing are by far the best for getting work done. Great things happen when a group of employees go out to dinner together, talk over ideas, and then come back to their offices to implement them. So you want to be in a place where there are a lot of restaurants around, not some dreary office park that’s a wasteland after 6:00 PM. Once a company shifts over into the model where everyone drives home to the suburbs for dinner, however late, you’ve lost something extraordinarily valuable. God help you if you actually start in that mode.If I were going to start a startup today, there are only three places I’d consider doing it: on the Red Line near Central, Harvard, or Davis Squares (Kendall is too sterile); in Palo Alto on University or California Aves; and in Berkeley immediately north or south of campus. These are the only places I know that have the right kind of vibe.The most important way to not spend money is by not hiring people. I may be an extremist, but I think hiring people is the worst thing a company can do. To start with, people are a recurring expense, which is the worst kind. They also tend to cause you to grow out of your space, and perhaps even move to the sort of uncool office building that will make your software worse. But worst of all, they slow you down: instead of sticking your head in someone’s office and checking out an idea with them, eight people have to have a meeting about it. So the fewer people you can hire, the better.During the Bubble a lot of startups had the opposite policy. They wanted to get “staffed up” as soon as possible, as if you couldn’t get anything done unless there was someone with the corresponding job title. That’s big company thinking. Don’t hire people to fill the gaps in some a priori org chart. The only reason to hire someone is to do something you’d like to do but can’t.If hiring unnecessary people is expensive and slows you down, why do nearly all companies do it? I think the main reason is that people like the idea of having a lot of people working for them. This weakness often extends right up to the CEO. If you ever end up running a company, you’ll find the most common question people ask is how many employees you have. This is their way of weighing you. It’s not just random people who ask this; even reporters do. And they’re going to be a lot more impressed if the answer is a thousand than if it’s ten.This is ridiculous, really. If two companies have the same revenues, it’s the one with fewer employees that’s more impressive. When people used to ask me how many people our startup had, and I answered “twenty,” I could see them thinking that we didn’t count for much. I used to want to add “but our main competitor, whose ass we regularly kick, has a hundred and forty, so can we have credit for the larger of the two numbers?”As with office space, the number of your employees is a choice between seeming impressive, and being impressive. Any of you who were nerds in high school know about this choice. Keep doing it when you start a company.Should You?But should you start a company? Are you the right sort of person to do it? If you are, is it worth it?More people are the right sort of person to start a startup than realize it. That’s the main reason I wrote this. There could be ten times more startups than there are, and that would probably be a good thing.I was, I now realize, exactly the right sort of person to start a startup. But the idea terrified me at first. I was forced into it because I was a Lisp hacker. The company I’d been consulting for seemed to be running into trouble, and there were not a lot of other companies using Lisp. Since I couldn’t bear the thought of programming in another language (this was 1995, remember, when “another language” meant C++) the only option seemed to be to start a new company using Lisp.I realize this sounds far-fetched, but if you’re a Lisp hacker you’ll know what I mean. And if the idea of starting a startup frightened me so much that I only did it out of necessity, there must be a lot of people who would be good at it but who are too intimidated to try.So who should start a startup? Someone who is a good hacker, between about 23 and 38, and who wants to solve the money problem in one shot instead of getting paid gradually over a conventional working life.I can’t say precisely what a good hacker is. At a first rate university this might include the top half of computer science majors. Though of course you don’t have to be a CS major to be a hacker; I was a philosophy major in college.It’s hard to tell whether you’re a good hacker, especially when you’re young. Fortunately the process of starting startups tends to select them automatically. What drives people to start startups is (or should be) looking at existing technology and thinking, don’t these guys realize they should be doing x, y, and z? And that’s also a sign that one is a good hacker.I put the lower bound at 23 not because there’s something that doesn’t happen to your brain till then, but because you need to see what it’s like in an existing business before you try running your own. The business doesn’t have to be a startup. I spent a year working for a software company to pay off my college loans. It was the worst year of my adult life, but I learned, without realizing it at the time, a lot of valuable lessons about the software business. In this case they were mostly negative lessons: don’t have a lot of meetings; don’t have chunks of code that multiple people own; don’t have a sales guy running the company; don’t make a high-end product; don’t let your code get too big; don’t leave finding bugs to QA people; don’t go too long between releases; don’t isolate developers from users; don’t move from Cambridge to Route 128; and so on. [8] But negative lessons are just as valuable as positive ones. Perhaps even more valuable: it’s hard to repeat a brilliant performance, but it’s straightforward to avoid errors. [9]The other reason it’s hard to start a company before 23 is that people won’t take you seriously. VCs won’t trust you, and will try to reduce you to a mascot as a condition of funding. Customers will worry you’re going to flake out and leave them stranded. Even you yourself, unless you’re very unusual, will feel your age to some degree; you’ll find it awkward to be the boss of someone much older than you, and if you’re 21, hiring only people younger rather limits your options.Some people could probably start a company at 18 if they wanted to. Bill Gates was 19 when he and Paul Allen started Microsoft. (Paul Allen was 22, though, and that probably made a difference.) So if you’re thinking, I don’t care what he says, I’m going to start a company now, you may be the sort of person who could get away with it.The other cutoff, 38, has a lot more play in it. One reason I put it there is that I don’t think many people have the physical stamina much past that age. I used to work till 2:00 or 3:00 AM every night, seven days a week. I don’t know if I could do that now.Also, startups are a big risk financially. If you try something that blows up and leaves you broke at 26, big deal; a lot of 26 year olds are broke. By 38 you can’t take so many risks– especially if you have kids.My final test may be the most restrictive. Do you actually want to start a startup? What it amounts to, economically, is compressing your working life into the smallest possible space. Instead of working at an ordinary rate for 40 years, you work like hell for four. And maybe end up with nothing– though in that case it probably won’t take four years.During this time you’ll do little but work, because when you’re not working, your competitors will be. My only leisure activities were running, which I needed to do to keep working anyway, and about fifteen minutes of reading a night. I had a girlfriend for a total of two months during that three year period. Every couple weeks I would take a few hours off to visit a used bookshop or go to a friend’s house for dinner. I went to visit my family twice. Otherwise I just worked.Working was often fun, because the people I worked with were some of my best friends. Sometimes it was even technically interesting. But only about 10% of the time. The best I can say for the other 90% is that some of it is funnier in hindsight than it seemed then. Like the time the power went off in Cambridge for about six hours, and we made the mistake of trying to start a gasoline powered generator inside our offices. I won’t try that again.I don’t think the amount of bullshit you have to deal with in a startup is more than you’d endure in an ordinary working life. It’s probably less, in fact; it just seems like a lot because it’s compressed into a short period. So mainly what a startup buys you is time. That’s the way to think about it if you’re trying to decide whether to start one. If you’re the sort of person who would like to solve the money problem once and for all instead of working for a salary for 40 years, then a startup makes sense.For a lot of people the conflict is between startups and graduate school. Grad students are just the age, and just the sort of people, to start software startups. You may worry that if you do you’ll blow your chances of an academic career. But it’s possible to be part of a startup and stay in grad school, especially at first. Two of our three original hackers were in grad school the whole time, and both got their degrees. There are few sources of energy so powerful as a procrastinating grad student.If you do have to leave grad school, in the worst case it won’t be for too long. If a startup fails, it will probably fail quickly enough that you can return to academic life. And if it succeeds, you may find you no longer have such a burning desire to be an assistant professor.If you want to do it, do it. Starting a startup is not the great mystery it seems from outside. It’s not something you have to know about “business” to do. Build something users love, and spend less than you make. How hard is that?Notes[1] Google’s revenues are about two billion a year, but half comes from ads on other sites.[2] One advantage startups have over established companies is that there are no discrimination laws about starting businesses. For example, I would be reluctant to start a startup with a woman who had small children, or was likely to have them soon. But you’re not allowed to ask prospective employees if they plan to have kids soon. Believe it or not, under current US law, you’re not even allowed to discriminate on the basis of intelligence. Whereas when you’re starting a company, you can discriminate on any basis you want about who you start it with.[3] Learning to hack is a lot cheaper than business school, because you can do it mostly on your own. For the price of a Linux box, a copy of K&R, and a few hours of advice from your neighbor’s fifteen year old son, you’ll be well on your way.[4] Corollary: Avoid starting a startup to sell things to the biggest company of all, the government. Yes, there are lots of opportunities to sell them technology. But let someone else start those startups.[5] A friend who started a company in Germany told me they do care about the paperwork there, and that there’s more of it. Which helps explain why there are not more startups in Germany.[6] At the seed stage our valuation was in principle $100,000, because Julian got 10% of the company. But this is a very misleading number, because the money was the least important of the things Julian gave us.[7] The same goes for companies that seem to want to acquire you. There will be a few that are only pretending to in order to pick your brains. But you can never tell for sure which these are, so the best approach is to seem entirely open, but to fail to mention a few critical technical secrets.[8] I was as bad an employee as this place was a company. I apologize to anyone who had to work with me there.[9] You could probably write a book about how to succeed in business by doing everything in exactly the opposite way from the DMV.

Leave a Comment

managment fables

stories and analogies
illustrations and analogies for motivation, inspiration, learning and training
Here are some stories, analogies, research findings and other examples that provide wonderful illustrations for learning, and inspiration for self-development. Read here about the travellers and the monk, tickle me elmo, get in the wheelbarrow, the person who had feelings, the shoe box story, the scorpion and the frog, murphy’s plough, Pavlov’s dogs, the monkeys and the stairs, and more. Analogies, stories, fables and case-studies are great ways to illustrate business lessons. Stories, examples, fables and research references add colour and substance to presentations and reports, and reinforce learning of all types. Some of these stories are ironic and so can best be used to illustrate pitfalls and vulnerabilities rather than best practice. If you know who wrote any of the unattributed stories below please let us know so that credit can be given.
Read and enjoy and send me your own favourite stories and anecdotes.
It has been suggested to me that some of these stories might be offensive to certain people in certain situations. If you are a strong advocate of political correctness or are easily offended please don’t read this page, or the rest of this website, and for goodness sake don’t go near the acronyms page.
So, please don’t use any of these stories in any situations that might cause offence to people.

the william pitt story (working creatively to reach agreement, managing situations and environments, facilitation of agreements)

There is the story of William Pitt, 1759-1806, British statesman and Prime Minister from 1783-1801, who once sought to expedite a crucial agreement in Parliament for the movement of the British fleet to defend against the French. The Chancellor of the Exchequer, Lord Newcastle, had certain objections, but when Pitt called on the Chancellor endeavouring to resolve the differences, he found the Chancellor distinctly unhappy in bed suffering with gout. The bedroom was freezing, and when Pitt remarked on this, Lord Newcastle replied that the cold weather would hinder the fleet movement, but more particularly that the combination of the cold conditions and the gout would prevent any further discussion of the issue at that time, which Pitt quickly judged to be at the root of the problem. Begging the Chancellor’s pardon, Pitt calmly removed his boots, climbed into bed and drew up the covers (apparently there was another bed in the room..), whereupon the two were able to discuss the matter and soon agreed a united way forward.
the biscuit factory story (making assumptions, other people’s perspectives, individual needs and motivations)

This is a true story. Some years ago the following exchange was broadcast on an Open University sociology TV programme.
An interviewer was talking to a female production-line worker in a biscuit factory. The dialogue went like this:
Interviewer: How long have you worked here?
Production Lady: Since I left school (probably about 15 years).
Interviewer: What do you do?
Production Lady: I take packets of biscuits off the conveyor belt and put them into cardboard boxes.
Interviewer: Have you always done the same job?
Production Lady: Yes.
Interviewer: Do you enjoy it?
Production Lady: Oooh Yes, it’s great, everyone is so nice and friendly, we have a good laugh.
Interviewer (with a hint of disbelief): Really? Don’t you find it a bit boring?
Production Lady: Oh no, sometimes they change the biscuits…

My thanks to Shirley Moon for this lovely story, who also points out the following lessons within it:
Do not impose your own needs and ambitions on to other people who may not share them.
Don’t assume that things that motivate you will motivate someone else.
Recognise that sources of happiness may vary widely between people.
See also the sections on personality styles, multiple intelligence and learning styles, and motivation, which all relate to this story.
a short story about eggs (time management, creative thinking and problem-solving)
A young woman was in her kitchen.
A pan of water was simmering on the stove.
She was making boiled eggs for breakfast.
He walked in.
Their eyes met.
“Make love to me here, now,” she said.
They made love on the kitchen table.
“Couldn’t resist me, huh?” he said.
“The egg timer is broken,” she replied.

Of course this story is a bit far-fetched given that an egg timer lasts for three whole minutes..
(Ack Detoxman)
the translator story (communications, assumptions, creativity, deceit, language, relationships, just deserts)
The story goes that a prominent, married, philandering, wealthy politician took advantage of a young female Italian translator during an overseas visit. Shortly after his return home he received a phone call at his office from the woman informing him that she was pregnant and that he was definitely the father.
Seemingly experienced at dealing with such situations, the politician instructed the young woman, “I will arrange for you and the child to be provided for. Do not worry about money. I will pay ten times the typical Italian settlement, but this must be kept secret.”
“I see,” said the young woman, a little taken aback, but since she knew the man and his reputation she was not unduly surprised, and was also entirely happy never to see or speak to him again.
He went on, “Don’t ever call me again. Send me a postcard with some sort of coded message confirming date of birth, that the child is healthy and whether a boy or girl. Use your imagination – you are a translator after all.”
“As you wish,” said the young woman, and ended the call.
A little under nine months later the politician’s wife (who was also his PA) was opening his mail. When she came to a particular postcard the politician noticed and suddenly became attentive.
“Here’s a postcard…” said his wife.
“Oh yes,” said the politician, “What does it say?”
“Just a silly joke I think,” said his wife, continuing, as she watched the colour drain from her husband’s face, ” ‘It says: ‘March 12th – Just had three big beautiful bowls of spaghetti – all with meatballs..’ “
(Ack SF)
the helpful old lady story (check the facts, false assumptions, etc)
One afternoon, an old lady, laden with shopping, noticed two small boys on the front step of a house. With their bags and uniforms they were obviously going home after school. They were on tip-toe trying to reach the door-bell with a stick.
“Poor little lads, they can’t get in,” she thought, “Parents these days just don’t seem to care.”
So she marched up the path, reached over the boys and gave the bell a long firm push.
The surprised boys turned around and screamed “Quick, run!” and promptly disappeared over the garden wall.
the buddha and the abuse (responding to other people’s negative behaviour; angry customers, disruptive kids, bad-tempered bosses, etc)
A tale is told about the Buddha, Gautama (563-483BC), the Indian prince and spiritual leader whose teachings founded Buddhism. This short story illustrates that every one of us has the choice whether or not to take personal offence from another person’s behaviour.
It is said that on an occasion when the Buddha was teaching a group of people, he found himself on the receiving end of a fierce outburst of abuse from a bystander, who was for some reason very angry.
The Buddha listened patiently while the stranger vented his rage, and then the Buddha said to the group and to the stranger, “If someone gives a gift to another person, who then chooses to decline it, tell me, who would then own the gift? The giver or the person who refuses to accept the gift?”
“The giver,” said the group after a little thought. “Any fool can see that,” added the angry stranger.
“Then it follows, does it not,” said the Buddha, “Whenever a person tries to abuse us, or to unload their anger on us, we can each choose to decline or to accept the abuse; whether to make it ours or not. By our personal response to the abuse from another, we can choose who owns and keeps the bad feelings.”
(This is related to Transactional Analysis)
the gandhi shoe story (selfless compassion, generosity without strings)
Mohandas [Mahatma] Karamchand Gandhi (1869-1948), the great Indian statesman and spiritual leader is noted for his unusual humanity and selflessness, which this story epitomises. Gandhi was boarding a train one day with a number of companions and followers, when his shoe fell from his foot and disappeared in the gap between the train and platform. Unable to retrieve it, he took off his other shoe and threw it down by the first. Responding to the puzzlement of his fellow travellers, Gandhi explained that a poor person who finds a single shoe is no better off – what’s really helpful is finding a pair.
Separately, Gandhi was once asked what he thought of Western Civilisation. Gandhi replied: “I think that it would be a very good idea.”
The notion still applies.
(More inspirational and amusing quotes.)
greta garbo negotiation story (negotiation tactics, negotiating position, independence and the power of choice)
Great Garbo (1905-90), the 1930’s Swedish-born film star, demonstrated how to negotiate with a bullying adversary, and particularly the tactic of ‘walking away’. After Garbo had become established as a major star, she decided to negotiate a contract that suitably reflected her considerable box-office value to the producers. Accordingly she demanded a weekly fee of $5,000 – compared to the derisory $350 a week she’d previously been paid. When film mogul Louis Mayer heard Garbo’s demand he offered her $2,500. Garbo replied simply, in her Swedish-American accent, “I think I go home..” And off she went.
Garbo returned to her hotel and stayed there, not budging, while Mayer stewed – for seven months – at which Mayer eventually caved in and gave Garbo what she asked for.
(Interestingly Garbo never actually said, “I want to be alone”. There phrase was in fact “I want to be left alone,” which her character Grusinskaya said in Garbo’s 1932 film Grand Hotel. The resonance of the words with Garbo’s real life didn’t just extend to her negotiating style: she retired in 1941 with the world still at her feet, and lived the rest of her life an obsessive recluse in New York after becoming a US citizen in 1951.)
jesse james story (tactics, morality, good and bad in us all)
The notorious American Wild West bank robber Jesse James (1847-82) was hunted and demonised by the authorities, but was held in high regard by many ordinary folk. Here’s an example of why:
The story goes that Jesse James and his gang had taken refuge for a few days in ramshackle farmhouse after one of their raids. The old widow who lived there fed the men, and apologised for her modest offerings and the poor state of the accommodation. While the gang laid low, they learned from the widow that she faced eviction from her landlord and was expecting a visit from his debt collector any day. Taking pity on the old lady, as they left, the gang gave her some of the spoils of their robbery to settle her debt – several hundred dollars, which was a small fortune in those days. The gang moved on, but only to a nearby copse, where for a couple more days they watched and waited for the arrival – and departure – of the debt collector, whom they promptly held up and robbed.
Of course robbing anyone is bad, but if you’ve got to rob someone…
the gorilla story (negotiating, understanding communications, agreeing clear objectives and responsibilities)
A zoo had among its animals a female gorilla, whose mood was becoming increasingly difficult. The vet concluded that she was on heat and that a mate should be found. The vet contacted some other nearby zoos to find a partner for the broody female, but to no avail. The female gorilla’s behaviour continued to worsen, but the vet noticed that she grew calmer, and strangely responsive, whenever a particularly well-built and none-too-handsome keeper entered the enclosure. Being an unprincipled and adventurous fellow, the vet put an outrageous proposition to the keeper: For a fee of five hundred pounds would the keeper consider spending a little ‘quality time’ with the gorilla, purely in the interests of research of course?….
The keeper, also an unprincipled and adventurous fellow, pondered the suggestion, and after a few minutes agreed to the offer, subject to three conditions. The vet, intrigued, listened to the keeper’s demands:
“First,” the keeper said, “No kissing.”
“Fine,” said the vet.
“Second, no-one must ever know – if this gets out I’ll kill you.”
“You have my word,” said the vet, “And your final condition?”
“It’s just,” said the keeper a little awkwardly, “Can I have a couple of weeks to raise the five hundred quid?”
(With acknowledgements to Shane and apologies to vets and zoo-keepers everywhere.)
the priest and the politician story (time management, being late, public speaking)
After twenty-five years in the same parish, Father O’Shaunessey was saying his farewells at his retirement dinner. An eminent member of the congregation – a leading politician – had been asked to make a presentation and a short speech, but was late arriving.
So the priest took it upon himself to fill the time, and stood up to the microphone:
“I remember the first confession I heard here twenty-five years ago and it worried me as to what sort of place I’d come to… That first confession remains the worst I’ve ever heard. The chap confessed that he’d stolen a TV set from a neighbour and lied to the police when questioned, successfully blaming it on a local scallywag. He said that he’d stolen money from his parents and from his employer; that he’d had affairs with several of his friends’ wives; that he’d taken hard drugs, and had slept with his sister and given her VD. You can imagine what I thought… However I’m pleased to say that as the days passed I soon realised that this sad fellow was a frightful exception and that this parish was indeed a wonderful place full of kind and decent people…”
At this point the politician arrived and apologised for being late, and keen to take the stage, he immediately stepped up to the microphone and pulled his speech from his pocket:
“I’ll always remember when Father O’Shaunessey first came to our parish,” said the politician, “In fact, I’m pretty certain that I was the first person in the parish that he heard in confession…..”
(Ack Stephen Hart)
lipstick kisses on the mirror story (creative thinking, creative problem-solving, creative management techniques, avoiding confrontation)
A school head was alerted by the caretaker to a persistent problem in the girls lavatories: some of the girl students were leaving lipstick kisses on the mirrors. The caretaker had left notices on the toilet walls asking for the practice to cease, but to no avail; every evening the caretaker would wipe away the kisses, and the next day lots more kisses would be planted on the mirror. It had become a bit of a game. The head teacher usually took a creative approach to problem solving, and so the next day she asked a few girl representatives from each class to meet with her in the lavatory.
“Thank you for coming,” said the head, “You will see there are several lipstick kisses in the mirrors in this washroom..”
Some of the girls grinned at each other.
“As you will understand, modern lipstick is cleverly designed to stay on the lips, and so the lipstick is not easy at all to clean from the mirrors. We have therefore had to develop a special cleaning regime, and my hope is that when you see the effort involved you will help spread the word that we’d all be better off if those responsible for the kisses use tissue paper instead of the mirrors in future..”
At this point the caretaker stepped forward with a sponge squeegee, which he took into one of the toilet cubicles, dipped into the toilet bowl, and then used to clean one of the lipstick-covered mirrors.
The caretaker smiled. The girls departed. And there were no more lipstick kisses on the mirrors.
(Thanks H)
measuring by averages story (analysis, measurement, statistics, etc)
Three statisticians went hunting in the woods. Before long, one of them pointed to a plump pigeon in a tree, and the three of them stopped and took aim. The first fired, missing the bird by a couple of inches to the left. Immediately afterwards the second fired, but also missed, a couple of inches to the right. The third put down his gun exclaiming, “Great shooting lads, on average I reckon we got it…”
(ack K Hutchinson)
the blind golfers story (an ironic example of lack of empathy, and different people’s perspectives)
A clergyman, a doctor and a business consultant were playing golf together one day and were waiting for a particularly slow group ahead. The business consultant exclaimed, “What’s with these people? We’ve been waiting over half and hour! It’s a complete disgrace.” The doctor agreed, “They’re hopeless, I’ve never seen such a rabble on a golf course.” The clergyman spotted the approaching greenkeeper and asked him what was going on, “What’s happening with that group ahead of us? They’re surely too slow and useless to be playing, aren’t they?” The greenkeeper replied, “Oh, yes, that’s a group of blind fire-fighters. They lost their sight saving our clubhouse from a fire last year, so we always let them play for free anytime.” The three golfers fell silent for a moment. The clergyman said, “Oh dear, that’s so sad. I shall say some special prayers for them tonight.” The doctor added, rather meekly, “That’s a good thought. I’ll get in touch with an ophthalmic surgeon friend of mine to see if there’s anything that can be done for them.” After pondering the situation for a few seconds, the business consultant turned to the greenkeeper and asked, “Why can’t they play at night?”
(Other job-titles can be substituted instead of business consultant to suit the purpose of the story, for example, government advisor, venture capitalist, engineer, project manager, accountant, finance director, quality manager, etc)
the sales and marketing rugby analogy story (for teams, motivation, team-building, departmental cooperation, training, public speaking)
I am assured this is a true story. A consultant was asked to give a talk at a sales conference. The CEO asks him to focus on the importance of cooperation and teamwork between the sales and marketing teams, since neither group has a particularly high regard for the other, and the lack of cohesion and goodwill is hampering effectiveness and morale. The marketing staff constantly moan about the sales people ‘doing their own thing’ and ‘failing to follow central strategy’; and the sales people say that the marketing people are all ‘idle theorists who waste their time at exhibitions and agency lunches’ and have ‘never done a decent day’s work in their lives’.
Being a lover of rugby, the consultant decides to use the analogy of a rugby team’s forwards and backs working together to achieve the best team performance:
“……So, just as in the game of rugby, the forwards, like the marketing department, do the initial work to create the platform and to make the opportunities, and then pass the ball out to the backs, the sales department, who then use their skills and energy to score the tries. The forwards and the backs, just like marketing and sales, are each good at what they do: and they work together so that the team wins…” said the consultant, finishing his talk.
The audience seemed to respond positively, and the conference broke for lunch. At the bar the consultant asked one of the top sales-people what he’d thought of the analogy – had it given him food for thought?
“Yes, I see what you mean,” said the salesman, “It does make sense. The sales people – the backs, yes? – the backs need the marketing department – the forwards, yes? – to make the opportunities for us, so that we, the backs, can go and score the tries – to win the business. We work together as a team – each playing our own part – working as a team.”
The consultant beamed and nodded enthusiastically, only to be utterly dashed when the salesman added as an afterthought, “I still think our forwards are a bunch of wankers…”
(with thanks to Martin Deighton)
the lock and key story (kindness and generosity, ‘good pebble ripples’, memorable customer service experiences)
A British family were on holiday in a rented motor-home in the USA. Travelling through California they visited the Magic Mountain amusement park close by Los Angeles. Mid-afternoon, halfway through what was turning out to be a most enjoyable day at the park, Mum, Dad and the three kids came upon a particularly steep plummeting ride. In the queue, the ride attendants strongly warned everyone about the risks of losing hats, spectacles, coins and keys, etc., and these warnings were echoed by large signs around the ride. During the ride, Dad lost the keys.
Due to the fact that the motor-home was a replacement vehicle resulting from a breakdown earlier in the holiday, there were no spare keys. And there were six keys on the lost bunch: ignition, front doors, side door, fuel tank, propane tank, and storage cupboards.
The park attendants drove the family back to the motor-home, suggesting the least damaging ways to break into it.
Fortunately a window had been left slightly open, enabling the middle son to be put in and to open the doors from the inside.
Inside the motor-home Mum and Dad discussed what to do. They were stranded.
Middle son (all of six years old) said he’d got a key – said he’d found it – but no-one was listening properly. “Perhaps it will fit, I’ll get it.” (The optimism of young children of course knows no bounds.)
Not thinking for one second that little lad’s key would fit, Dad tried it. Incredibly the key fitted the ignition – and the driver’s door. Middle son is a hero. It seems he’d found the key in a cupboard when packing his clothes soon after the motor-homes were swapped after the first vehicle broke down.
The next day back at the camp site, Dad called a local locksmith to see what could be done.
“I might be able to make new keys from the locks, if you bring the vehicle to me,” said the locksmith, so the family drove to the locksmith, whose business was in a small shopping centre in the California countryside.
The locksmith looked at the motor-home, and said he’d try. “If you come back in an hour I’ll know better what I can do for you.”
The family went to the nearby shops and a coffee bar to pass the time. Dad returned to the locksmith to see how things were going. The locksmith says he thought he could make new keys for all the locks, but it would be a long job.
In fact the job took the locksmith most of the day. The family hung around the locksmiths, visited the shops again, and generally made a day of being at the little shopping centre. While working on the locks and the keys, the locksmith talked with the family about England, about America, about the rides at Las Vegas, about motor-homes, about business, about locks, about families and kids, about lots of things.
Late on in the afternoon the locksmith said that he’d nearly done – “But you have time to go get something to eat if you want. When you come back I’ll be done.” So the family went to a burger bar for something to eat.
An hour later the family returned to the locksmith’s shop. It was 4pm and they’d been at the shopping centre since 10.00 in the morning.
When Dad entered the locksmith’s shop the locksmith was smiling. He put two new gleaming bunches of keys on the counter. “Here you go – a new set of keys for all the locks, and a spare set too,” said the locksmith, “And I tell you what I’m going to do…”
Dad offered his credit card, gratefully.
“You know, I’ve had such a great time with you guys today,” says the locksmith, “You can have these for free.”

This is a true story. It happened over ten years ago. I still tell people about it now, like I’m telling you. The company is Newhall Valencia Lock & Key, in the El Centro Shopping Center, Canyon Country, California. This little company gave me and my family an experience that transcended customer service, and I was delighted when I found their business card in my kitchen drawer the other day, because it prompted me to share this story and to properly express my thanks.
Just a final note – I’m not suggesting that great customer service is about giving your products and services away. Obviously that’s not a particularly sustainable business model. What I’m saying though, is that there are times when you’ll see opportunity to do something really special for a customer, or for another human being, and when you do it, the ripples of your ‘good pebble’ can stretch around the world, and last for years and years. So, within the boundaries of what’s possible and viable for you, drop in a good pebble whenever you can and make some ripples of your own.
the stranger and the gingernuts story (making assumptions, think before you act, different perspectives)
At the airport after a tiring business trip a lady’s return flight was delayed. She went to the airport shop, bought a book, a coffee and a small packet containing five gingernut biscuits. The airport was crowded and she found a seat in the lounge, next to a stranger. After a few minutes’ reading she became absorbed in her book. She took a biscuit from the packet and began to drink her coffee. To her great surprise, the stranger in the next seat calmly took one of the biscuits and ate it. Stunned, she couldn’t bring herself to say anything, nor even to look at the stranger. Nervously she continued reading. After a few minutes she slowly picked up and ate the third biscuit. Incredibly, the stranger took the fourth gingernut and ate it, then to the woman’s amazement, he picked up the packet and offered her the last biscuit. This being too much to tolerate, the lady angrily picked up her belongings, gave the stranger an indignant scowl and marched off to the boarding gate, where her flight was now ready. Flustered and enraged, she reached inside her bag for her boarding ticket, and found her unopened packet of gingernuts…
(Adapted from a suggestion submitted by S Frost. Apparently the story appears in a variety of urban legends dating from at least 30 years ago, and is also described in Douglas Adams’ Hitchhiker’s Guide to the Galaxy, book four, 1984, ‘So Long, and Thanks for All the Fish’. Ack L Baldock.)
two funny stories to illustrate initiative and lateral thinking, and the importance of induction training
These (allegedly true) short stories provide amusing examples of lateral thinking and initiative, and staff training (or lack of) at the workplace. It is better to train people properly rather than assume that new starters have the necessary initiative to work out for themselves what they should be doing…..
While transporting some unfortunate mental patients from one secure place to another, the newly appointed bus driver stopped at a roadside restaurant for natural break. On his return to the bus, all twenty patients were gone. Being a resourceful fellow and fearing the consequences of his negligence, he drove to the next bus stop, where he claimed to be a replacement for the usual service. Allowing twenty people aboard, the driver made straight for his destination, where he warned staff at the gates that the ‘patients’ were deluded and extremely volatile. The angry ‘patients’ were duly removed, sedated and incarcerated, and remained in detention for three days, until staff were able to check the records and confirm their true identities. The actual patients were never found.
A new hotel employee was asked to clean the elevators and report back to the supervisor when the task was completed. When the employee failed to appear at the end of the day the supervisor assumed that like many others he had simply not liked the job and left. However, after four days the supervisor bumped into the new employee. He was cleaning in one of the elevators. “You surely haven’t been cleaning these elevators for four days, have you?” asked the supervisor, accusingly. “Yes sir,” said the employee, “This is a big job and I’ve not finished yet – do you realise there are over forty of them, two on each floor, and sometimes they are not even there….”
a story about communications, and men and women (communications, communications methods, relationships)
A man and his wife had been arguing all night, and as bedtime approached neither was speaking to the other. It was not unusual for the pair to continue this war of silence for two or three days, however, on this occasion the man was concerned; he needed to be awake at 4:30am the next morning to catch an important flight, and being a very heavy sleeper he normally relied on his wife to wake him. Cleverly, so he thought, while his wife was in the bathroom, he wrote on a piece of paper: ‘Please wake me at 4:30am – I have an important flight to catch’. He put the note on his wife’s pillow, then turned over and went to sleep.
The man awoke the next morning and looked at the clock. It was 8:00am. Enraged that he’d missed his flight, he was about to go in search of his errant wife to give her a piece of his mind, when he spotted a hand-written note on his bedside cabinet.
The note said: ‘It’s 4:30am – get up.’
the sergeant major and the rude parrot story (examples of management styles)
A retired sergeant major inherited a talking parrot from a recently departed relative who had run a busy dockside pub. For the first few days in his new home the normally talkative parrot was distinctly shy. The old major, despite his stern and disciplined ways, felt sorry for the bird, and gently encouraged it with soft words and pieces of fruit. After a week or so the parrot began to find its voice – a little at first – and then more so. Responding to the kind treatment, the parrot’s vocabulary continued to recover, including particularly the many colourful expressions it had been taught in the dockside pub. The old sergeant major began to be quite irritated by the parrot’s incessant rudeness, and after a few more days of worsening profanities, decided action was required to bring the bird under control. The sergeant major tried at first to incentivise the parrot with the promise of reward for good behaviour, but to no avail. He next tried to teach the bird a lesson by withdrawing its privileges, again to no avail; the parrot remained stubbornly rude. Finally the old major flipped into battleground management mode; he grabbed the bird, clamped his hands around its beak, and thrust the struggling, swearing parrot, into the top drawer of the freezer, slamming the door tightly shut. The swearing and struggling noises continued inside the freezer for a few seconds and then abruptly stopped. The sergeant major listened for a while and then, concerned that the parrot’s shock might have been terminal, carefully opened the freezer door and opened the drawer to look. The parrot slowly clambered out of the drawer and perched on its edge.
“I must apologise for my rude and disrespectful behaviour,” said the parrot, “I promise never to use bad language again. And by the way, what did the turkey do?”
the farmer and the boy in the bog story (helping others, inspiration, gratitude and appreciation, good comes from doing good)
This widely used story is often told as if it’s a true story. It is most certainly not. It is an urban legend, but even as such, the story contains great lessons and is very inspirational.
Fleming was a poor Scottish farmer. One day at work in a field he heard a cry for help. Following the sound, Fleming came to a deep bog, in which a boy was stuck up to his chest, screaming and sinking. Farmer Fleming tied a rope around his own waist and the other end to a tree, and waded into the bog. After a mighty struggle in which it seemed they would both perish, the exhausted farmer pulled himself and the boy to safety. He took the lad back to the farmhouse, where Mrs Fleming fed him, dried his clothes, and when satisfied he had recovered, sent him on his way home.
The next day a carriage arrived at the Fleming’s humble farmhouse. An well-dressed man stepped out and introduced himself as the father of the boy whom Fleming had saved. “You saved my son’s life,” said the man to Fleming, “How can I repay you?”
“I don’t want payment,” Fleming replied, “Anyone would have done the same.”
At that moment, Fleming’s own young son appeared at the farmhouse door.
“Is he your son?” the man asked.
“Yes,” said Fleming proudly.
“I have an idea. Let me pay for his education. If he’s like his father, he’ll grow to be a man we’ll both be proud of.”
And so he did. The farmer’s son attended the very best schools, graduated medical college, and later became the world-renowned nobel prize-winning scientist and discoverer of penicillin, Sir Alexander Fleming.
It is said that many years later, the grown man who’d been saved from the bog as a boy, was stricken with pneumonia.
Penicillin saved his life. His name? Sir Winston Churchill.
(I repeat this is an urban legend – it is not a true story – so I recommend you present it as such when you tell it. Ack B McFarlane)
the brewery story (to challenge belief systems and assumptions, and the need for questioning pointless routine or policy)
It has been suggested to me that this is a true story: A very old traditional brewery decided to install a new canning line, so as to enable its beer products to be marketed through the supermarket sector. This represented a major change for the little company, and local dignitaries and past employees were invited to witness the first running of the new canning line, which was followed by an buffet and drinks.
After the new line had been switched on successfully, and the formalities completed, the guests relaxed in small groups to chat and enjoy the buffet. In a quiet corner stood three men discussing trucks and transport and distribution, since one was the present distribution manager, and the other two were past holders of the post, having retired many years ago. The three men represented three generations of company distribution management, spanning over sixty years.
The present distribution manager confessed that his job was becoming more stressful because company policy required long deliveries be made on Monday and Tuesday, short deliveries on Fridays, and all other deliveries mid-week.
“It’s so difficult to schedule things efficiently – heaven knows what we’ll do with these new cans and the tight demands of the supermarkets…”
The other two men nodded in agreement.
“It was the same in my day,” sympathised the present manager’s predecessor, “It always seemed strange to me that trucks returning early on Mondays and Tuesdays couldn’t be used for little local runs, because the local deliveries had to be left until Friday..”
The third man nodded, and was thinking hard, struggling to recall the policy’s roots many years ago when he’d have been a junior in the despatch department. After a pause, the third man smiled and then ventured a suggestion.
“I think I remember now,” he said, “It was the horses….. During the Second World War fuel rationing was introduced. So we mothballed the trucks and went back to using the horses. On Mondays the horses were well-rested after the weekend – hence the long deliveries. By Friday the horses so tired they could only handle the short local drops…”
Soon after the opening of the new canning line the company changed its delivery policy.
(Ack R Chagar)
See also the ‘we’ve always done it that way’ story and the fish baking story and the monkey story.
corporate rowing competition story (identifying and managing performance improvement, establishing cause and accountability, theory x vs theory y, daft executive judgements)
The boards of the two fiercely competitive companies decided to organize a rowing match to challenge each other’s organisational and sporting abilities. The first company was strongly ‘theory X’: ruthless, autocratic, zero staff empowerment, etc. The second company was more ‘theory y’: a culture of developing people, devolved responsibility and decision-making.
Race day arrived. The Y company’s boat appeared from the boat-house first, with its crew: eight rowers and a helmsman (the cox). Next followed the X company boat and its crew – eight helmsmen and a single rower.
Not surprisingly the Y company’s boat won an easy victory.
The next day the X company board of directors held an inquest with the crew, to review what had been learned from the embarrassing defeat, which might be of benefit to the organization as a whole, and any future re-match.
After a long and wearing meeting the X company board finally came came to their decision. They concluded that the rower should be replaced immediately because clearly he had not listened well enough to the instructions he’d been given.
(Ack JJ Lasseur)
performance evaluation story (theory x shortcomings, management myopia)
Following a poor first-half year performance the board of Company X tasked a senior manager to investigate what was happening on the factory floor, since the directors believed poor productivity was at the root of the problem. While walking around the plant, the investigating manager came upon a large warehouse area where a man stood next to a pillar. The manager introduced himself as the person investigating performance on the factory floor, appointed by the board, and then asked the man by the pillar what he was doing. “It’s my job,” replied the man, “I was told to stand by this pillar.”
The investigator thanked the man for his cooperation and encouraged him to keep up the good work. The investigator next walked into a large packing area, where he saw another man standing next to a pillar. The investigator again introduced himself and asked the man what he was doing. “I’ve been told to stand by this pillar, so that’s what I do.” said the man.
Two weeks later the investigator completed his report and duly presented his findings to the board, who held a brief meeting to decide remedial action. The board called the investigator back into the room, thanked him for his work, and then instructed him to sack one of the men he’d found standing by pillars, since obviously this was a duplication of effort.
(Ac JJL)
no exit story (different perspectives, viewpoints, how different perspectives cause one thing to appear as two different things)
A person checks into a hotel for the first time in his life, and goes up to his room.
Five minutes later he calls the reception desk and says: “You’ve given me a room with no exit. How do I leave?”
The desk clerk says, “Sir, that’s absurd. Have you looked for the door?”
The person says, “Well, there’s one door that leads to the bathroom. There’s a second door that goes into the closet. And there’s a door I haven’t tried, but it has a ‘do not disturb’ sign on it.”
(Ack B McFarlane)
See also the blind men and the elephant story below.
the old couple story (positive/negative outlook, blame, attitude)
An elderly couple, married for sixty years, took a rare vacation. They were not well-off but were in good health, perhaps because the wife had insisted on a strict diet of healthy foods, no alcohol, no smoking, and lots of gym exercise for most of their lives. Sadly their plane crashed however, and duly they both entered heaven, where St Peter escorted them through the Pearly Gates, and into a waiting limousine. Driving through beautiful countryside they drew up at a beautiful mansion and were shown inside. It was furnished in gold and fine silks, with a splendid kitchen and a sumptuous lounge stocked with wonderful food and drink – there was even a waterfall in the master bathroom. A maid was hanging beautiful designer clothes in the walk-in wardrobes. They gasped in astonishment when St Peter said, “Welcome to heaven. This will be your home now.”
The old man asked Peter how much all this was going to cost. “Nothing,” Peter replied, “this is your heavenly reward.”
The old man looked out of the window and saw a magnificent championship golf course.
“What are the green fees?” he asked suspiciously.
“This is heaven,” St Peter replied, “You can play for free whenever you wish.”
Next they went to the clubhouse and saw the lavish buffet lunch, with every imaginable cuisine laid out before them.
Anticipating the old man’s next question, St Peter said, “Don’t ask, this is heaven, it is all free for you to enjoy.”
The old man looked around and glanced nervously at his wife. “Well, where are the low fat and low cholesterol foods, and the decaffeinated tea?” he asked.
“This is heaven. You can eat and drink as much as you like, and you will never get fat or sick.”
“I don’t need to go to the gym?” the old man pressed.
“Not unless you want to,” St Peter replied.
“No testing my sugar or blood pressure or…”
“Never again. All you do here is enjoy yourself.”
The old man glared at his wife, “You and your bloody bran muffins. We could have been here ten years ago!”
(Ack CB)
two brothers and the geese story (initiative, responsibility, thinking outside the box, anticipating, strategic anticipation, adding value to service, value and reward)
Two sons work for their father on the family’s farm. The younger brother had for some years been given more responsibility and reward, and one day the older brother asks his father to explain why.
The father says, “First, go to the Kelly’s farm and see if they have any geese for sale – we need to add to our stock.”
The brother soon returns with the answer, “Yes they have five geese they can sell to us.”
That father then says, “Good, please ask them the price.”
The son returns with the answer, “The geese are £10 each.”
The father says, “Good, now ask if they can deliver the geese tomorrow.”
And duly the sone returns with the answer, “Yes, they can deliver the geese them tomorrow.”
The father asks the older brother to wait and listen, and then calls to the younger brother in a nearby field, “Go to the Davidson’s Farm and see if they have any geese for sale – we need to add to our stock.”
The younger brother soon returns with the answer, “Yes, they have five geese for £10 each, or ten geese for £8 each; and they can deliver them tomorrow – I asked them to deliver the five unless they heard otherwise from us in the next hour. And I agreed that if we want the extra five geese we could buy them at £6 each.”
The father turned to the older son, who nodded his head in appreciation – he now realised why his brother was given more responsibility and reward.
(adapted from a suggestion – thanks PI)
piano story (mentoring, coaching, understanding the other person’s development needs)
A mother wished to encourage her small girl’s interest in the piano and so took her a local concert featuring an excellent pianist. In the entrance foyer the mother met an old friend and the two stopped to talk. The little girl was keen to see inside the hall and so wandered off, unnoticed by her mother. The girl’s mother became concerned when she entered the hall and could see no sign of her daughter. Staff were notified and an announcement was made asking the audience to look out for the little lost girl. With the concert due to start, the little girl had still not been found. In preparation for the pianist’s entrance, the curtains drew aside, to reveal the little girl sitting at the great piano, focused in concentration, quietly picking out the notes of ‘Twinkle Twinkle Little Star’.
The audience’s amusement turned to curiosity when the pianist entered the stage, walked up to the little girl, and said “Keep playing.”
The pianist sat down beside her, listened for a few seconds, and whispered some more words of encouragement. He then began quietly to play a bass accompaniment, and then a few bars later reached around the little girl to add more accompaniment. At the end of the impromptu performance the audience applauded loudly as the pianist took the little girl back to her seat to be reunited with her mother. The experience was inspirational for everyone, not least the small girl.
It takes just a few moments to make somebody’s day, to help someone with their own personal aims and dreams – especially someone who looks up to you for encouragement and support. (Ack PC)
angry customer story (funny customer service example)
Allegedly a true story from the old airport in Denver: a major airline had cancelled a very busy flight and a lone check-in agent is busy trying to sort out all the displaced passengers. A very angry and aggressive man barges his way to the front of the queue to confront her. He says says that he is flying first class and demands to go on the flight. The agent politely explains the situation and asks that people take their place in the queue. The man bellows at her, “Do you know who I am?” – at which the agent calmly picks up the microphone for the PA system, and announces to the airport, “This is (airline name) desk 64; we have a gentleman here who does not know who he is. If anyone can come and identify him please do so.” The man, now purple with rage, yells at her, “Well f**k you..” – to which the agent replies, “And you’ll have to stand in line for that as well, Sir…”
(Ack MS)
clap and cheer (positive attitude, taking pride in whatever you do)
A small boy was auditioning with his classmates for a school play. His mother knew that he’d set his heart on being in the play – just like all the other children hoped too – and she feared how he would react if he was not chosen. On the day the parts were awarded, the little boy’s mother went to the school gates to collect her son. The little lad rushed up to her, eyes shining with pride and excitement. “Guess what Mum,” he shouted, and then said the words that provide a lesson to us all, “I’ve been chosen to clap and cheer.”
(Ack F Laufs)
the bank story (a lesson in customer service, how bad policy encourages poor service)
I am assured this is a true story from a UK bank. The bank concerned had introduced a charge to be levied when people paid in money to be credited to an account held by a different bank. The charge was 50p and had been in force for about 6 months or so. A well to do, upper-class lady enters the bank and presents the cashier a cheque (check) which she asks to be paid into an account held by a different bank. The cashier duly tells the lady that there will be a charge of 50p. Indignantly, she tells him, “I wasn’t charged the last time.”
To which the cashier immediately replies, “Well that will be a pound then…”
(Ack MS)
the fish baking story (to challenge belief systems and assumptions, and illustrate pointless routine and the need for questioning)
A little girl was watching her mother prepare a fish for dinner. Her mother cut the head and tail off the fish and then placed it into a baking pan. The little girl asked her mother why she cut the head and tail off the fish. Her mother thought for a while and then said, “I’ve always done it that way – that’s how babicka (Czech for grandma) did it.”
Not satisfied with the answer, the little girl went to visit her grandma to find out why she cut the head and tail off the fish before baking it.
Grandma thought for a while and replied, “I don’t know. My mother always did it that way.”
So the little girl and the grandma went to visit great grandma to find ask if she knew the answer.
Great grandma thought for a while and said, “Because my baking pan was too small to fit in the whole fish”.
(Ack M Hamanova)
See also: the we’ve always done it that way story and the monkey story and the brewery story.
the donkey story (positive attitudes, turning problems into opportunities)
One day a farmer’s donkey fell into a well. The farmer frantically thought what to do as the stricken animal cried out to be rescued. With no obvious solution, the farmer regretfully concluded that as the donkey was old, and as the well needed to be filled in anyway, he should give up the idea of rescuing the beast, and simply fill in the well. Hopefully the poor animal would not suffer too much, he tried to persuade himself.
The farmer asked his neighbours help, and before long they all began to shovel earth quickly into the well. When the donkey realised what was happening he wailed and struggled, but then, to everyone’s relief, the noise stopped.
After a while the farmer looked down into the well and was astonished by what he saw. The donkey was still alive, and progressing towards the top of the well. The donkey had discovered that by shaking off the dirt instead of letting it cover him, he could keep stepping on top of the earth as the level rose. Soon the donkey was able to step up over the edge of the well, and he happily trotted off.
Life tends to shovel dirt on top of each of us from time to time. The trick is to shake it off and take a step up.
(Ack TB)
shepherd story (IT consultants, business consultancy, knowing your facts – ironic example)
A shepherd was tending his flock in a field, when a new sports car screeched to a stop on the road nearby in a cloud of dust. The driver, a young man in expensive designer clothes and sunglasses, leans out of the window and shouts over to the shepherd, “If I tell you exactly how many sheep you have here, can I take one?”
The shepherd looks up slowly up at the young man, then looks at his peaceful flock, and calmly answers, “Sure, why not?”
The young man steps out of his car holding a state-of-the-art palmtop pda, with which he proceeds to connects to a series of websites, first calling up satellite navigation system to pinpoint his location, then keying in the location to generate an ultra-high resolution picture of the field. After emailing the photo to an image processing facility, the processed data is returned, which he then feeds into an online database, and enters the parameters for a report. Within another few seconds a miniature printer in the car produces a full colour report containing several pages of analysis and results. The young man studies the data for a few more seconds and returns to the shepherd.
“You have exactly one-thousand five-hundred and eighty-six sheep, including three rams, and seven-hundred and twenty-two lambs.”
“That’s right,” says the shepherd, mildly impressed. “Well, I guess that means you get to take one of my sheep.”
The young man makes his choice and loads the animal onto the back seat of his car, at which the shepherd says, almost as an afterthought, “Hey there, if I can tell you what your business is, will you give me back my sheep?”
The young man, feeling confident, agrees.
“You’re a consultant,” says the shepherd.
“Wow, that’s right,” says the young man, taken aback, “How did you guess that?”
“No guessing required,” answers the shepherd, “You showed up here even though nobody called you. You took a fee for giving me an answer that already know, to a question I never asked, and you know nothing about my business. Now give me back my dog.”
(Ack S Faure)
speed camera story (creative thinking, teamwork, understanding and using modern technology – do not try this at home….)
This allegedly true story, supposedly leaked by the Australian Department of Transport, concerns four Australian young men and a mobile speed camera police van. Three of the four lads engaged the speed camera operators in conversation about the camera equipment, and the number of cars caught, etc., while the fourth unscrewed the van’s front registration plate. Bidding the police farewell, the lads returned home, screwed the registration plate to their own car and proceeded to complete 17 very fast round trips through the speed camera’s radar. The traffic penalties department subsequently issued 17 speeding tickets to itself.
a story of three engineers (different approaches to problem-solving, modern IT, etc)
A mechanical engineer, a systems engineer, and a software engineer are in a car driving down a steep mountain road when the brakes fail. The driver desperately pumps the brake pedal, trying to control the speeding vehicle around cliff-edge bends, while the passengers do their best not to panic. As the car hurtles towards an impossible corner the driver spots an escape route into a hedge and a haystack beyond, where the car eventually grinds to a surprisingly safe stop. The three engineers all get out, shaken, relieved, and take turns to assess the situation.
‘Hmm,’ says the mechanical engineer, ‘It looks like a brake line was leaking – let’s repair the split, bleed the brakes, and we should be able to get on our way…”
The systems engineer thinks for a while and says, ‘Maybe we need to contact the manufacturer and the dealer to confirm exactly what the problem is…”
The software engineer slowly climbs into the driver’s seat and, gesturing for the others to join him, says, ‘How about we get back on the road and see if it happens again?..’

(An alternative final line, suggested kindly and brilliantly by David Shiell, would be: “How about if we close all the windows and try again..”)
the sweet old couple (dangers of making assumptions, understand before you intervene)
A little old couple walked into a fast food restaurant. The little old man walked up to the counter, ordered the food, paid, and took the tray back to the table where the little old lady sat. On the tray was a hamburger, a small bag of fries and a drink. Carefully the old man cut the hamburger in two, and divided the fries into two neat piles. He sipped the drink and passed it to the little old lady, who took a sip and passed it back. A young man on a nearby table had watched the old couple and felt sorry for them. He offered to buy them another meal, but the old man politely declined, saying that they were used to sharing everything. The old man began to eat his food, but his wife sat still, not eating. The young continued to watch the couple. He still felt he should be offering to help. As the little old man finished eating, the old lady had still not started on her food. “Ma’am, why aren’t you eating?” asked the young man sympathetically.
The old lady looked up and said politely, “I’m waiting for the teeth..”
a lesson in gender empathy (a light-hearted illustration of the other person’s perspective; for johari window, empathy, NLP, etc)
Lifestyle and behaviour choices that men take for granted, and largely fail to realise that women cannot…
Your last name stays put.
The garage is all yours.
Wedding plans take care of themselves.
Chocolate is just another snack.
You can be president.
You can never be pregnant.
You can wear a white T-shirt to a water park.
You can wear no T-shirt to a water park.
Car mechanics tell you the truth.
The world is your urinal.
You never have to drive to another gas station restroom because this one is just ‘too icky’.
You don’t have to stop and think of which way to turn a nut on a bolt.
Same work, more pay.
Wrinkles add character.
Wedding dress $5000. Tux rental – $100.
People never stare at your chest when you’re talking to them.
The occasional well-rendered belch is practically expected.
New shoes don’t cut, blister, or mangle your feet.
One mood – all the time.
Phone conversations are over in 30 seconds flat.
You know stuff about tanks.
A five-day vacation requires only one suitcase.
You can open all your own jars.
You get extra credit for the slightest act of thoughtfulness.
If someone forgets to invite you, he or she can still be your friend.
Your underwear is $8.95 for a three-pack.
Three pairs of shoes are more than enough.
You almost never have strap problems in public.
You are unable to see wrinkles in your clothes.
Everything on your face stays its original color.
The same hairstyle lasts for years, maybe decades.
You only have to shave your face and neck.
You can play with toys all your life.
Your belly usually hides your big hips.
One wallet and one pair of shoes one color for all seasons.
You can wear shorts no matter how your legs look.
You can ‘do’ your nails with a pocket-knife.
You have freedom of choice concerning growing a mustache.
You can do Christmas shopping for twenty-five relatives on 24th December in forty-five minutes.
(Ack CB – please contact us if you know the author)
aunt karen (relevance and reliability of lessons, morals and examples)
A teacher told her young class to ask their parents for a family story with a moral at the end of it, and to return the next day to tell their stories.
In the classroom the next day, Joe gave his example first, “My dad is a farmer and we have chickens. One day we were taking lots of eggs to market in a basket on the front seat of the truck when we hit a big bump in the road; the basket fell off the seat and all the eggs broke. The moral of the story is not to put all your eggs in one basket..”
“Very good,” said the teacher.
Next, Mary said, “We are farmers too. We had twenty eggs waiting to hatch, but when they did we only got ten chicks. The moral of this story is not to count your chickens before they’re hatched..”
“Very good,” said the teacher again, very pleased with the response so far.
Next it was Barney’s turn to tell his story: “My dad told me this story about my Aunt Karen…. Aunt Karen was a flight engineer in the war and her plane got hit. She had to bail out over enemy territory and all she had was a bottle of whiskey, a machine gun and a machete.”
“Go on,” said the teacher, intrigued.
“Aunt Karen drank the whiskey on the way down to prepare herself; then she landed right in the middle of a hundred enemy soldiers. She killed seventy of them with the machine gun until she ran out of bullets. Then she killed twenty more with the machete till the blade broke. And then she killed the last ten with her bare hands.”
“Good heavens,” said the horrified teacher, “What did your father say was the moral of that frightening story?”
“Stay away from Aunt Karen when she’s been drinking…”
(Ack CB – if you know the origin please tell us)
tickle me elmo (an induction training and communications story)
This allegedly took place in a factory in the USA which manufactured the ‘Tickle Me Elmo’ toys, (a children’s plush cuddly toy which laughs when tickled under the arm). The legend has is it that a new employee was hired at the Tickle Me Elmo factory and she duly reported for her first day’s induction training, prior to being allocated a job on the production line. At 08:45 the next day the personnel manager received a visit from an excited assembly line foreman who was not best pleased about the performance of the new recruit. The foreman explained that she was far too slow, and that she was causing the entire line to back-up, delaying the whole production schedule. The personnel manager asked to see what was happening, so both men proceeded to the factory floor. On arrival they saw that the line was indeed badly backed-up – there were hundreds of Tickle Me Elmos strewn all over the factory floor, and they were still piling up. Virtually buried in a mountain of toys sat the new employee earnestly focused on her work. She had a roll of red plush fabric and a bag of marbles. The two men watched amazed as she cut a little piece of fabric, wrapped it around a pair of marbles and carefully began sewing the little package between Elmo’s legs. The personnel manager began to laugh, and it was some while before he could compose himself, at which he approached the trainee. “I’m sorry,” he said to her, not able to disguise his amusement, “but I think you misunderstood the instructions I gave you yesterday…. Your job is to give Elmo two test tickles.”
get in the wheelbarrow (belief, trust and commitment)
The story goes: upon completing a highly dangerous tightrope walk over Niagara Falls in appalling wind and rain, ‘The Great Zumbrati’ was met by an enthusiastic supporter, who urged him to make a return trip, this time pushing a wheelbarrow, which the spectator had thoughtfully brought along.
The Great Zumbrati was reluctant, given the terrible conditions, but the supporter pressed him, “You can do it – I know you can,” he urged.
“You really believe I can do it?” asked Zumbrati.
“Yes – definitely – you can do it.” the supporter gushed.
“Okay,” said Zumbrati, “Get in the wheelbarrow…..”
parachutes (supporting others, acknowledging others)
Charles Plumb was a navy jet pilot. On his seventy-sixth combat mission, he was shot down and parachuted into enemy territory. He was captured and spent six years in prison. He survived and now lectures on the lessons he learned from his experiences.
One day, a man in approached Plumb and his wife in a restaurant, and said, “Are you Plumb the navy pilot?”
“Yes, how did you know?” asked Plumb.
“I packed your parachute,” the man replied.
Plumb was amazed – and grateful: “If the chute you packed hadn’t worked I wouldn’t be here today…”
Plumb refers to this in his lectures: his realisation that the anonymous sailors who packed the parachutes held the pilots’ lives in their hands, and yet the pilots never gave these sailors a second thought; never even said hello, let alone said thanks.
Now Plumb asks his audiences, “Who packs your parachutes?….. Who helps you through your life?…. Physically, mentally, emotionally, spiritually?……. Think about who helps you; recognise them and say thanks.”
(Ack JK, and thanks to the person who wrote to confirm that Charles Plum still speaks and lectures.)
spellchecker poem (check your meaning, and the perils of modern technology)
I halve a spelling checker,It came with my pea see.It plainly marks four my revueMistakes I dew knot sea.
Eye strike a key and type a wordAnd weight four it two sayWeather eye am wrong oar writeIt shows me strait aweigh.
As soon as a mist ache is maidIt nose bee fore two longAnd eye can put the era riteIts rarely ever wrong.
I’ve scent this massage threw it,And I’m shore your pleased too noIts letter prefect in every weigh;My checker tolled me sew.
(If you no who rote it contact us)
chickens (communications story)
This is allegedly a true story. Engineers at a major aerospace company were instructed to test the effects of bird-strikes (notably geese) on the windshields of airliners and military jets. To simulate the effect of a goose colliding with an aircraft travelling at high speed, the test engineers built a powerful gun, with which they fired dead chickens at the windshields. The simulations using the gun and the dead chickens worked extremely effectively, happily proving the suitability of the windshields, and several articles about the project appeared in the testing industry press.
It so happened that another test laboratory in a different part of the world was involved in assessing bird-strikes – in this case on the windshields and drivers’ cabs of new very high speed trains. The train test engineers had read about the pioneering test developed by the aerospace team, and so they approached them to ask for specifications of the gun and the testing methods. The aerospace engineers duly gave them details, and the train engineers set about building their own simulation.
The simulated bird-strike tests on the train windshields and cabs produced shocking results. The supposed state-of-the-art shatter-proof high speed train windshields offered little resistance to the high-speed chickens; in fact every single windshield that was submitted for testing was smashed to pieces, along with a number of train cabs and much of the test booth itself.
The horrified train engineers were concerned that the new high speed trains required a safety technology that was beyond their experience, so they contacted the aerospace team for advice and suggestions, sending them an extensive report of the tests and failures.
The brief reply came back from the aero-engineers: “You need to defrost the chickens….”
(Ack S Money)
the chihuahua and the leopard (creative thinking)
A lady takes her pet chihuahua with her on a safari holiday. Wandering too far one day the chihuahua gets lost in the bush, and soon encounters a very hungry looking leopard. The chihuahua realises he’s in trouble, but, noticing some fresh bones on the ground, he settles down to chew on them, with his back to the big cat. As the leopard is about to leap, the chihuahua smacks his lips and exclaims loudly, “Boy, that was one delicious leopard. I wonder if there are any more around here.”
The leopard stops mid-stride, and slinks away into the trees.
“Phew,” says the leopard, “that was close – that evil little dog nearly had me.”
A monkey nearby sees everything and thinks he’ll win a favour by putting the stupid leopard straight. The chihuahua sees the monkey go after the leopard, and guesses he might be up to no good.
When the leopard hears the monkey’s story he feels angry at being made a fool, and offers the monkey a ride back to see him exact his revenge.
The little dog sees them approaching and fears the worse.
Thinking quickly, the little dog turns his back, pretends not to notice them, and when the pair are within earshot says aloud, “Now where’s that monkey got to? I sent him ages ago to bring me another leopard….”
the cannibals (a story about management)
A big corporation hired several cannibals. “You are all part of our team now,” said the HR manager during the welcome briefing. “You get all the usual benefits and you can go to the cafeteria for something to eat, but please don’t eat any of the other employees.” The cannibals promised they would not.
A few weeks later the cannibals’ boss remarked, “You’re all working very hard, and I’m satisfied with you. However, one of our secretaries has disappeared. Do any of you know what happened to her?” The cannibals all shook their heads, “No,” they said.
After the boss left, the leader of the cannibals said to the others angrily, “Right, which one of you idiots ate the secretary?”
A hand rose hesitantly in admission. “You fool!” said the leader, “For weeks we’ve been eating managers and no one noticed anything, but noooooo, you had to go and eat someone important!…”
(Ack A Fiorello)
the dog and the bone (be content with what you have – greed and envy seldom pay)
A dog held a juicy bone in his jaws as he crossed a bridge over a brook. When he looked down into the water he saw a another dog below with what appeared to be a bigger juicier bone. He jumped into the brook to snatch the bigger bone, letting go his own bone, He quickly learned of course that the bigger bone was just a reflection, and so he ended up with nothing.
(Thanks J Phillips – more Aesop’s fables here)
“we’ve always done it that way..” (time management, challenging habits and questioning procedures, challenging assumptions and belief systems)
Apparently this is based on a true incident. A quality management consultant was visiting a small and somewhat antiquated English manufacturing company, to advise on improving general operating efficiency. The advisor was reviewing a particular daily report which dealt with aspects of productivity, absentee rates, machine failure, down-time, etc. The report was completed manually onto a photocopied proforma that was several generations away from the original master-copy, so its headings and descriptions were quite difficult to understand. The photocopied forms were particularly fuzzy at the top-right corner, where a small box had a heading that was not clear at all. The advisor was interested to note that the figure ‘0′ had been written in every daily report for the past year. On questioning the members of staff who completed the report, they told him that they always put a zero in that box, and when he asked them why they looked at each other blankly. “Hmmm.., I’m not sure about that,” they each said, “I guess we’ve just always done it that way.”
Intrigued, the consultant visited the archives to see if he could find a clearer form, to discover what was originally being reported and whether it actually held any significance. When he found the old reports, he saw that the zero return had continued uninterrupted for as far back as the records extended – at least the past thirty years – but none of the forms was any clearer than those presently in use. A little frustrated, he packed away the old papers and turned to leave the room, but something caught his eye. In another box he noticed a folder, promisingly titled ‘master forms’. Sure enough inside it he found the original daily report proforma master-copy, in pristine condition. In the top right corner was the mysterious box, with the heading clearly shown …… ‘Number of Air Raids Today’.
See also the brewery story, the fish baking story and the monkey story.
the dam story (how to write a good letter, making assumptions, jumping to conclusions, and how to defend wrong accusations with humour)
Here are two letters, according to the story both real, the first allegedly sent to a man named Ryan DeVries by the Michigan Department of Environmental Quality, State of Michigan; the second is Mr DeVries’ amusing response. The letters provide a great example of the dangers of making assumptions and jumping to conclusions, and also how to reply to a false accusation with humour and style.
the Michigan DOEQ letter
Subject: DEQ File No.97-59-0023;T11N; R10W, Sec. 20;Montcalm County
Dear Mr. DeVries,
It has come to the attention of the Department of Environmental Quality that there has been recent unauthorized activity on the above referenced parcel of property. You have been certified as the legal landowner and/or contractor who did the following unauthorized activity:
Construction and maintenance of two wood debris dams across the outlet stream of Spring Pond.
A permit must be issued prior to the start of this type of activity. A review of the Department’s files shows that no permits have been issued. Therefore, the Department has determined that this activity is in violation of Part 301, Inland Lakes and Streams, of the Natural Resource and Environmental Protection Act, Act 451 of the Public Acts of 1994, being sections 324.30101 to 324.30113 of the Michigan Compiled Laws, annotated.
The Department has been informed that one or both of the dams partially failed during a recent rain event, causing debris and flooding at downstream locations. We find that dams of this nature are inherently hazardous and cannot be permitted. The Department therefore orders you to cease and desist all activities at this location, and to restore the stream to a free-flow condition by removing all wood and brush forming the dams from the stream channel. All restoration work shall be completed no later than January 31, 2003. Please notify this office when the restoration has been completed so that our staff may schedule a follow-up site inspection.
Failure to comply with this request or any further unauthorized activity on the site may result in this case being referred for elevated enforcement action. We anticipate and would appreciate your full cooperation in this matter. Please feel free to contact me at this office if you have any questions.
Sincerely, District Representative Land and Water Management Division
Mr Devries’ letter response
Dear Sirs,
Re: DEQ File No. 97-59-0023; T11N; R10W, Sec. 20; Montcalm County.
Your certified letter dated 12/17/02 has been handed to me to respond to. I am the legal landowner but not the Contractor at 2088 Dagget, Pierson, Michigan. A couple of beavers are in the process (State unauthorized) of constructing and maintaining two wood “debris” dams across the outlet stream of my Spring Pond. While I did not pay for, authorize, nor supervise their dam project, I think they would be highly offended that you call their skillful use of natures building materials “debris”.
I would like to challenge your department to attempt to emulate their dam project any time and/or any place you choose. I believe I can safely state there is no way you could ever match their dam skills, their dam resourcefulness, their dam ingenuity, their dam persistence, their dam determination and/or their dam work ethic. As to your request, I do not think the beavers are aware that they must first fill out a dam permit prior to the start of this type of dam activity.
My first dam question to you is: (1) are you trying to discriminate against my Spring Pond Beavers or (2) do you require all beavers throughout this State to conform to said dam request? If you are not discriminating against these particular beavers, through the Freedom of Information Act, I request completed copies of all those other applicable beaver dam permits that have been issued. Perhaps we will see if there really is a dam violation of Part 301, Inland Lakes and Streams, of the Natural Resource and Environmental Protection Act, Act 451 of the Public Acts of 1994, being sections 324.30101 to 324.30113 of the Michigan Compiled Laws, annotated.
I have several concerns. My first concern is: aren’t the beavers entitled to legal representation? The Spring Pond Beavers are financially destitute and are unable to pay for said representation, so the State will have to provide them with a dam lawyer. The Department’s dam concern that either one or both of the dams failed during a recent rain event causing flooding is proof that this is a natural occurrence, which the Department is required to protect. In other words, we should leave the Spring Pond Beavers alone rather than harassing them and calling them dam names. If you want the stream “restored” to a dam free-flow condition please contact the beavers, but if you are going to arrest them, they obviously did not pay any attention to your dam letter, they being unable to read English.
In my humble opinion, the Spring Pond Beavers have a right to build their unauthorized dams as long as the sky is blue, the grass is green and water flows downstream. They have more dam rights than I do to live and enjoy Spring Pond. If the Department of Natural Resources and Environmental Protection lives up to its name, it should protect the natural resources (Beavers) and the environment (Beavers’ Dams). So, as far as the beavers and I are concerned, this dam case can be referred for more elevated enforcement action right now. Why wait until 1/31/2003? The Spring Pond Beavers may be under the dam ice then and there will be no way for you or your dam staff to contact/harass them then.
In conclusion, I would like to bring to your attention to a real environmental quality (health) problem in the area. It is the bears! Bears are actually defecating in our woods. I definitely believe you should be persecuting the defecating bears and leave the beavers alone. If you are going to investigate the beaver dam, watch your step! (The bears are not careful where they dump!) Being unable to comply with your dam request, and being unable to contact you on your dam answering machine, I am sending this response to your dam office.
Thank you
Ryan Devries and the Dam Beavers

Footnote: I’m grateful to J DeKorne for pointing out that these letters are in fact based on real correspondence involving Stephen Tvedten of Marne, Michigan. The original letters are here.

the blind men and the elephant (perception, truth, perspective, empathy, communications and understanding)
There are various versions of the story of the blind men and the elephant. The blind men and the elephant is a legend that appears in different cultures – notably China, Africa and India – and the tale dates back thousands of years. Some versions of the story feature three blind men, others five or six, but the message is always the same. Here’s a story of the six blind men and the elephant:
Six blind men were discussing exactly what they believed an elephant to be, since each had heard how strange the creature was, yet none had ever seen one before. So the blind men agreed to find an elephant and discover what the animal was really like.
It didn’t take the blind men long to find an elephant at a nearby market. The first blind man approached the beast and felt the animal’s firm flat side. “It seems to me that the elephant is just like a wall,” he said to his friends.
The second blind man reached out and touched one of the elephant’s tusks. “No, this is round and smooth and sharp – the elephant is like a spear.”
Intrigued, the third blind man stepped up to the elephant and touched its trunk. “Well, I can’t agree with either of you; I feel a squirming writhing thing – surely the elephant is just like a snake.”
The fourth blind man was of course by now quite puzzled. So he reached out, and felt the elephant’s leg. “You are all talking complete nonsense,” he said, “because clearly the elephant is just like a tree.”
Utterly confused, the fifth blind man stepped forward and grabbed one of the elephant’s ears. “You must all be mad – an elephant is exactly like a fan.”
Duly, the sixth man approached, and, holding the beast’s tail, disagreed again. “It’s nothing like any of your descriptions – the elephant is just like a rope.”
And all six blind men continued to argue, based on their own particular experiences, as to what they thought an elephant was like. It was an argument that they were never able to resolve. Each of them was concerned only with their own idea. None of them had the full picture, and none could see any of the other’s point of view. Each man saw the elephant as something quite different, and while in part each blind man was right, none was wholly correct.
There is never just one way to look at something – there are always different perspectives, meanings, and perceptions, depending on who is looking.

See also the no exit story above for another analogy about different perspectives.
the owl and the field-mouse story (on executive policy-making)
A little field-mouse was lost in a dense wood, unable to find his way out. He came upon a wise old owl sitting in a tree. “Please help me, wise old owl, how can I get out of this wood?” said the field-mouse.
“Easy,” said the owl, “Grow wings and fly out, as I do.”
“But how can I grow wings?” asked the mouse.
The owl looked at him haughtily, sniffed disdainfully, and said, “Don’t bother me with the details, I only decide the policy.”
(Thanks P Boden)
‘…let me through I’m a doctor…’ alternatives (comment on modern times)
The scene, a minor road accident. The casualty is lying on the ground, surrounded by the inevitable crowd of onlookers. A stranger endeavours to push his way through the gathering, saying, “Make way, please. Let me through, I’m a counsellor”. (Ack. PB)
Alternatively: “… Let me through I’m a lawyer..” (or a journalist, TV reporter, etc..)
aircraft engineering support (lessons in communications and support service)
According to the story, after every Quantas Airlines flight the pilots complete a a ‘gripe sheet’ report, which conveys to the ground crew engineers any mechanical problems on the aircraft during the flight. The engineer reads the form, corrects the problem, then writes details of action taken on the lower section of the form for the pilot to review before the next flight. It is clear from the examples below that ground crew engineers have a keen sense of humour – these are supposedly real extracts from gripe forms completed by pilots with the solution responses by the engineers. Incidentally, Quantas has the best safety record of all the world’s major airlines.
(1 = The problem logged by the pilot.) (2 = The solution and action taken by the mechanics.)
Left inside main tire almost needs replacement.
Almost replaced left inside main tire.
Test flight OK, except auto-land very rough.
Auto-land not installed on this aircraft.
Something loose in cockpit.
Something tightened in cockpit.
Dead bugs on windshield.
Live bugs on back-order.
Autopilot in altitude-hold mode produces a 200 feet per minute descent.
Cannot reproduce problem on ground.
Evidence of leak on right main landing gear.
Evidence removed.
DME volume unbelievably loud.
DME volume set to more believable level.
Friction locks cause throttle levers to stick.
That’s what they’re there for.
IFF inoperative.
IFF always inoperative in OFF mode.
Suspected crack in windshield.
Suspect you’re right.
Number 3 engine missing.
Engine found on right wing after brief search.
Aircraft handles funny.
Aircraft warned to straighten up, fly right, and be serious.
Target radar hums.
Reprogrammed target radar with lyrics.
Mouse in cockpit.
Cat installed.
Noise coming from under instrument panel. Sounds like a midget pounding on something with a hammer.
Took hammer away from midget.
If you like stories and examples like these see also the tree swing pictures, which also provide an amusing and useful comment on departmental relationships, customer service and organizational communications.
(Ack. CB)
the rat and the lion (do good, what goes around comes around)
One day a small rat surfaced from his nest to find himself between the paws of a huge sleeping lion, which immediately awoke and seized the rat. The rat pleaded with the fierce beast to be set free, and the lion, being very noble and wise, and in no need of such small prey, agreed to let the relieved rat go on his way.
Some days later in the same part of the forest, a hunter had laid a trap for the lion, and it duly caught him, so that the lion was trussed up in a strong net, helpless, with nothing to do than wait for the hunter to return.
But it was the rat who came along next, and seeing the lion in need of help, promptly set about biting and gnawing through the net, which soon began to unravel, setting the great lion free.
The moral of the story is of course to make the world your debtor – even the humblest of folk may one day be of use.
the two mules (show off expensive things at your peril)
Two mules travelled regularly together with their loads, from their town to the city. The first mule, a humble beast, wore a tatty cloak, and carried sacks of oats for the miller. The second mule was an arrogant animal, who wore a fine coat with jingling bells. He carried gold and silver coins for the tax collector, and loved to brag about his responsibility and importance. Running late one day, the second mule suggested taking a short-cut, off the main road, despite his companion’s warnings about the risks of taking such a dangerous route. Sure enough, before too long, thieves attacked the second mule, stealing his valuable load, and leaving him injured by the roadside.
“But why me?” moaned the stricken animal, “I am attacked and robbed while the vagabonds leave you untouched?”
“I think even in this desperate place no thief would be interested in a poor miller’s slave, or my humble load!” said the first mule, “But you ventured down this dangerous track and made a show of yourself – you have only yourself to blame.”
the travellers and the monk story (attitude and outlook)
One day a traveller was walking along a road on his journey from one village to another. As he walked he noticed a monk tending the ground in the fields beside the road. The monk said “Good day” to the traveller, and the traveller nodded to the monk. The traveller then turned to the monk and said “Excuse me, do you mind if I ask you a question?”.
“Not at all,” replied the monk.
“I am travelling from the village in the mountains to the village in the valley and I was wondering if you knew what it is like in the village in the valley?”
“Tell me,” said the monk, “What was your experience of the village in the mountains?”
“Dreadful,” replied the traveller, “to be honest I am glad to be away from there. I found the people most unwelcoming. When I first arrived I was greeted coldly. I was never made to feel part of the village no matter how hard I tried. The villagers keep very much to themselves, they don’t take kindly to strangers. So tell me, what can I expect in the village in the valley?”
“I am sorry to tell you,” said the monk, “but I think your experience will be much the same there”.
The traveller hung his head despondently and walked on.
A while later another traveller was journeying down the same road and he also came upon the monk.
“I’m going to the village in the valley,” said the second traveller, “Do you know what it is like?”
“I do,” replied the monk “But first tell me – where have you come from?”
“I’ve come from the village in the mountains.”
“And how was that?”
“It was a wonderful experience. I would have stayed if I could but I am committed to travelling on. I felt as though I was a member of the family in the village. The elders gave me much advice, the children laughed and joked with me and people were generally kind and generous. I am sad to have left there. It will always hold special memories for me. And what of the village in the valley?” he asked again.
“I think you will find it much the same” replied the monk, “Good day to you”.
“Good day and thank you,” the traveller replied, smiled, and journeyed on.
(Thanks Carrie Birmingham)
the person who had feelings story (transactional analysis, conditioning and behaviour) by barbara dunlap
Once there was a very small person who had feelings. They had many feelings and felt them every day. Their family liked them when they showed their feelings, so the very small person started to wear their feelings on their sleeve. One day one of the small person’s parents said that they didn’t like to see the FEAR feeling any more, so the small person tried to pull it off. The parent said that they would give the small person some TOUGH to cover over their FEAR. The small person found it very difficult to cover the FEAR with the TOUGH, so the other parent and the grandparents all helped. It took many days. “Now you look wonderful,” said the parents when it was done. “We’ve covered some of your feelings with TOUGH, and you’ll grow into a strong person.”
The small person grew a little older and found a friend. The friend also wore their feelings on their sleeve. The friend said one day, “My parents want me to cover up my LONELY feelings, and to be different from now on.” And they were. The small person decided to cover over their LONELY feelings too, and they got ANGRY from another adult. The small person put big patches of ANGRY on top of their LONELY. It was hard work to cover over the LONELY feelings.
One day when the small person (who was now not so small) went to school some of their LONELY feelings started to show. So the teacher kept them behind an gave them some GUILT to cover their LONELY feelings. Sometimes when alone at night the person would look at their feelings. The would pull off the TOUGH and ANGRY and GUILT to look at their LONELY and FEAR. Then they would have to take a long time putting the TOUGH, ANGRY and GUILT back again.
One night the person noticed that their LONELY and FEAR were growing, and beginning to stick out from under the patches. So the person had to go out to find some more ANGRY to cover the LONELY, and got all the TOUGH that their parents could spare to cover their FEAR.
The person grew older and became very popular because everyone said that they could hide their feelings well. The person’s parents said one day that they had a PROUD feeling because the person had been so TOUGH. But the person could not find anywhere to put the PROUD feeling because the TOUGH was getting so big. The person had trouble finding room on their sleeve for any other feelings – the TOUGH and the ANGRY were all that showed.
Then after a time the person met another person and they became friends. They thought that they were a lot alike because they both had only TOUGH and ANGRY feelings that showed. One day the friend told the person a secret: “I’m not really like you – my TOUGH and ANGRY are only patches to cover over my LONELY and my FEAR.” The friend pulled back the edge of their TOUGH and showed the person their FEAR; just for a second.
The person sat quietly and did not speak. Then carefully they too pulled back the edge of their TOUGH and showed their FEAR. The friend saw the LONELY underneath. Then the friend gently reached out and touched the person’s FEAR, and then the LONELY……. The friend’s touch was like magic. A feeling of ACCEPTANCE appeared on the person’s sleeve, and the TOUGH and ANGRY had become smaller. The person then knew that whenever someone gave them ACCEPTANCE, they would need less TOUGH, and then there would be more room to show PROUD….. SAD ……. LOVING…. STRONG…. GOOD…. WARM… HURT… FEAR….
(Ack. Chris Davidson and Protective Behaviour “This wonderful story was found by chance. We acknowledge whoever was inspired to write it and apologise for not being able to give them credit by name…”)
Written by Barbara Dunlap (thanks Kati Collinson).
See also the wonderful and cynical ‘this be the verse’ by Philip Larkin on the subject of parental conditioning.
human resources tale
A highly successful Human Resources Manager was tragically knocked down by a bus and killed. Her soul arrived at the Pearly Gates, where St. Peter welcomed her:
“Before you get settled in,” he said, “We have a little problem… you see, we’ve never had a Human Resources Manager make it this far before and we’re not really sure what to do with you.”
“Oh, I see,” said the woman. “Can’t you just let me in?”
“Well, I’d like to,” said St Peter, “But I have higher orders. We’re instructed to let you have a day in hell and a day in heaven, and then you are to choose where you’d like to go for all eternity.”
“Actually, I think I’d prefer heaven”, said the woman.
“Sorry, we have rules…” at which St. Peter put the HR Manager into the downward bound elevator.
As the doors opened in hell she stepped out onto a beautiful golf course. In the distance was a country club; around her were many friends – past fellow executives, all smartly dressed, happy, and cheering for her. They ran up and kissed her on both cheeks and they talked about old times. They played a perfect round of golf and afterwards went to the country club where she enjoyed a superb steak and lobster dinner. She met the Devil, who was actually rather nice, and she had a wonderful night telling jokes and dancing. Before she knew it, it was time to leave; everyone shook her hand and waved goodbye as she stepped into the elevator. The elevator went back up to heaven where St. Peter was waiting for her.
“Now it’s time to spend a day in heaven,” he said.
So she spent the next 24 hours lounging around on clouds and playing the harp and singing, which was almost as enjoyable as her day in hell. At the day’s end St Peter returned.
“So,” he said, “You’ve spent a day in hell and you’ve spent a day in heaven. You must choose between the two.”
The woman thought for a second and replied, “Well, heaven is certainly lovely, but I actually had a better time in hell. I choose hell.”
Accordingly, St. Peter took her to the elevator again and she went back down to hell.
When the doors of the elevator opened she found herself standing in a desolate wasteland covered in garbage and filth. She saw her friends dressed in rags, picking up rubbish and putting it in old sacks. The Devil approached and put his arm around her.
“I don’t understand,” stuttered the HR Manager, “Yesterday I was here, and there was a golf course, and a country club, and we ate lobster, and we danced and had a wonderful happy time. Now all there’s just a dirty wasteland of garbage and all my friends look miserable.”
The Devil looked at her and smiled. “Yesterday we were recruiting you, today you’re staff.”
(Thanks CB and CC)
the shoe box story – on delusion…
There was once a man and woman who had been married for more than 60 years. They had shared everything. They had talked about everything. They had kept no secrets from each other except that the little old woman had a shoe box in the top of her closet that she had cautioned her husband never to open or ask her about. For all of these years, he had never thought about the box, but one day the little old woman got very sick and the doctor said she would not recover. In trying to sort out their affairs, the little old man took down the shoe box and took it to his wife’s bedside. She agreed that it was time that he should know what was in the box. When he opened it, he found two crocheted doilies and a stack of money totaling $25,000. He asked her about the contents. “When we were to be married,” she said, “my grandmother told me the secret of a happy marriage was to never argue. She told me that if I ever got angry with you, I should just keep quiet and crochet a doily.” The little old man was so moved, he had to fight back tears. Only two precious doilies were in the box. She had only been angry with him two times in all those years of living and loving. He almost burst with happiness. “Honey,” he said, “that explains the doilies, but what about all of this money? Where did it come from?” “Oh,” she said, “that’s the money I made from selling the doilies.” (Thanks C Byrd)
the businessman and the fisherman (change for change’s sake, and the purpose of life – also now featured on a ‘Kit-Kat’ snack-bar TV advert)
A management consultant, on holiday in a African fishing village, watched a little fishing boat dock at the quayside. Noting the quality of the fish, the consultant asked the fisherman how long it had taken to catch them.
“Not very long.” answered the fisherman.
“Then, why didn’t you stay out longer and catch more?” asked the consultant.
The fisherman explained that his small catch was sufficient to meet his needs and those of his family.
The consultant asked, “But what do you do with the rest of your time?”
“I sleep late, fish a little, play with my children, have an afternoon’s rest under a coconut tree. In the evenings, I go into the community hall to see my friends, have a few beers, play the drums, and sing a few songs….. I have a full and happy life.” replied the fisherman.
The consultant ventured, “I have an MBA from Harvard and I can help you…… You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat. With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have a large fleet. Instead of selling your fish to a middleman, you can negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to a city here or maybe even in the United Kingdom, from where you can direct your huge enterprise.”
“How long would that take?” asked the fisherman.
“Oh, ten, maybe twenty years.” replied the consultant.
“And after that?” asked the fisherman.
“After that? That’s when it gets really interesting,” answered the consultant, laughing, “When your business gets really big, you can start selling shares in your company and make millions!”
“Millions? Really? And after that?” pressed the fisherman.
“After that you’ll be able to retire, move out to a small village by the sea, sleep in late every day, spend time with your family, go fishing, take afternoon naps under a coconut tree, and spend relaxing evenings havings drinks with friends…”
(Ack Jean Kent)
microsoft tale
A different slant on the human resources tale above…
In 2050 A.D. Bill Gates dies in a car accident. He finds himself in the Purgatory waiting room, when God enters…
“Well, Bill,” says God, “I’m confused. I’m not sure whether to send you to Heaven or Hell: you helped society enormously by putting a computer in almost every home in the world, and yet you’ve also created some of the most unearthly frustrations known to mankind. I’m going to do something I’ve never done before: I’m going to let you choose where you want to go.”
Bill replies, “Well, thanks, God. What’s the difference between the two?”
God says, “I’m willing to let you visit both places briefly to help you make your decision.”
“Okay, where should I go first?” asks Bill.
God says, “That’s up to you.”
Bill says, “OK, let’s try Hell first.”
So Bill goes to Hell. It’s a beautiful, clean, sandy beach with clear waters. There are thousands of beautiful women running around, playing in the water, laughing and frolicking about. The sun is shining, the temperature is just right. The whole thing looks perfect, and Bill is very pleased.
“This is great!” he tells God, “If this is Hell, I REALLY want to see Heaven!”
“Fine,” says God, and off they go.
Heaven is a high place in the clouds, with angels drifting about playing harps and singing. It very nice but not as enticing as Hell. Bill thinks for a moment and announces his decision.
“Hmm, I think I prefer Hell.” he tells God.
“Fine,” says God, “As you desire.”
So Bill Gates is taken to Hell.
Two weeks later, God decides to check up on Bill to see how he’s doing in Hell. When God arrives in Hell, he finds Bill shackled to a wall, screaming amongst the hot flames in a dark cave. He’s being burned and tortured by demons.
“How’s everything going, Bill?” God asks.
Bill replies, his voice full of anguish and disappointment, “This is awful, it’s not what I expected at all, I can’t believe it. What happened to that other place with the beaches and the beautiful women playing in the water?”
God smiles and says, “That was the screen saver.”
(Ack CB and JM)
it will for that one
A small boy was walking along a beach at low tide, where countless thousands of small sea creatures, having been washed up, were stranded and doomed to perish. A man watched as the boy picked up individual creatures and took them back into the water.
“I can see you’re being very kind,” said the watching man, “But there must be a million of them; it can’t possibly make any difference.”
Returning from the water’s edge, the boy said, “It will for that one.”
a negotiation story
A sales-woman is driving home in the rain when she sees a little old lady walking by the roadside, heavily laden with shopping. Being a kindly soul, the sales-woman stops the car and invites the old lady to climb in. During their small talk, the old lady glances surreptitiously at a brown paper bag on the front seat between them. “If you are wondering what’s in the bag,” offers the sales-woman, “It’s a bottle of wine. I got it for my husband.” The little old lady is silent for a while, nods several times, and says …….. “Good trade.”
david mcclelland’s achievement motivation experiment
A pioneering thinker in the field of workplace motivation, David McClelland developed his theories chiefly while at Harvard in the 1950-60’s with experiments such as this: Volunteers were asked to throw rings over pegs rather like the fairground game; no distance was stipulated, and most people seemed to throw from arbitrary, random distances, sometimes close, sometimes farther away. However a small group of volunteers, whom McClelland suggested were strongly achievement-motivated, took some care to measure and test distances that would produce an ideal challenge – not too easy, and not impossible. Interestingly a parallel exists in biology, known as the ‘overload principle’, which is commony applied to fitness and exercising, ie., in order to develop fitness and/or strength the exercise must be sufficiently demanding to increase existing levels, but not so demanding as to cause damage or strain. McClelland identified the same need for a ‘balanced challenge’ in the approach of achievement-motivated people. People with a strong achievement-motivation need set themselves challenging and realistic goals – they need the challenge, but they also need to be sure they’ll accomplish the aim.
More information about David McClelland’s motivational theories.
the butterfly
A man found a cocoon for a butterfly. One day a small opening appeared, he sat and watched the butterfly for several hours as it struggled to force its body through the little hole. Then it seemed to stop making any progress. It appeared stuck.
The man decided to help the butterfly and with a pair of scissors he cut open the cocoon. The butterfly then emerged easily. Something was strange. The butterfly had a swollen body and shrivelled wings. The man watched the butterfly expecting it to take on its correct proportions. But nothing changed.
The butterfly stayed the same. It was never able to fly. In his kindness and haste the man did not realise that the butterfly’s struggle to get through the small opening of the cocoon is nature’s way of forcing fluid from the body of the butterfly into its wings so that it would be ready for flight.
Like the sapling which grows strong from being buffeted by the wind, in life we all need to struggle sometimes to make us strong.
(Ack. Paul Matthews)
judging people can be difficult
Fred and Mabel were both patients in a mental hospital. One day as they both walked beside the swimming pool, Mabel jumped into the deep end and sank to the bottom. Without a thought for his own safety, Fred jumped in after her, brought her to the surface, hauled her out, gave her the kiss of life and saved her.
The next day happened to be Fred’s annual review. He was brought before the hospital board, where the director told him, “Fred, I have some good news and some bad news: the good news is that in light of your heroic act yesterday we consider that you are sane and can be released from this home back into society. The bad news is, I’m afraid, that Mabel, the patient you saved, shortly afterwards hung herself in the bathroom with the belt from her bathrobe. I’m sorry but she’s dead”
“She didn’t hang herself,” Fred replied, “I put her there to dry.”
butcher story – on business ethics – chickens come home to roost…
A butcher, who had had a particularly good day, proudly flipped his last chicken on a scale and weighed it. “That will be £6.35,” he told the customer.
“That’s a good price, but it really is a little too small,” said the woman. “Don’t you have anything larger?”
Hesitating, but thinking fast, the clerk returned the chicken to the refrigerator, paused a moment, then took it out again.
“This one,” he said faintly, ” will be £6.65.”
The woman paused for a moment, then made her decision…
“I know what,” she said, “I’ll take both of them!”
(Thanks Doug Boit)
pavlov’s dogs
Ivan Pavlov was a Russian physiologist who lived from 1849-1936. He founded the Institute of Experimental Medicine in 1890, where his primary interest was digestion.
Pavlov’s Dogs is the name given to Ivan Pavlov’s seminal research in the early 20th century which established some essential principles of Classical Conditioning in the field of human psychology. Classical Conditioning concerns ‘learned’ or conditioned behaviour, (which also forms the basis of behaviour therapy).
We all have behaviours that we might seek to change. The Pavlov’s Dogs illustration helps us to understand more about why we respond sometimes irrationally to certain situations.
Pavlov’s Dogs provides a wonderful and true example for anyone seeking to explain or understand how our past experiences can prompt certain behaviours in the future, for example, phobias (irrational fears), neurosis (severe nervous or emotional responses to particular situations), and even mild feelings of concern or anxiety that virtually all of us are prone to in one way or another (eg., public speaking, fear of heights, flying, being reprimanded or tested, etc.)
The initial Pavlov’s Dogs experiment was simply to place a dog in a sound-proof, smell-proof cubicle, with no outside view – a controlled environment in other words. A sound was made when food was given to the dog, and the amount of salivation the dog produced was measured. After repeating this several times (called ‘trials’), the sound was made but no food was given. The dog still salivated.
This simple experiment established that the dog did not necessarily need the food in order to respond to food. The dog was responding to a stimulus or ‘trigger’ that produced the same response as the real thing. Pavlov could make the dog salivate whenever the sound was made.
This is expressed technically: a ‘Conditioned Stimulus’ (the sound) can produce a ‘Conditioned Response’ (the salivation), which was the same ‘Unconditioned Response’ (salivation in response to food) for the original ‘Unconditioned Stimulus’ (the food).
Pavlov also proved that slightly different sounds to the original Conditioned Stimulus produced a similar Conditioned Response, which he called ‘Generalisation’. Pavlov also obtained the same results by showing the dog a shape (a circle for food), and then established a level of ‘Discrimination’ by showing an oval when there was no food.
By continually repeating the Conditioned Stimulus, the Conditioned response was seen to weaken, and then eventually to cease, which he called ‘Extinction’. Surprisingly though, a after a day or two, when the Conditioned Stimulus (sound) was started again the dog again produced the Conditioned Response (salivation), which is called ‘Spontaneous Recovery’. This showed that conditioned behaviours can become very deeply embedded and well established.
Classical Conditioning is responsible for all behaviour that involves ‘Reflexes’ – heart-rate, perspiration, muscle-tension, etc. Think about your own anxieties that produce these reactions – they are Conditioned Responses from something (a Conditioned Stimulus) that you experienced in the past. Note also that if the original response is very strong, the conditioning can result from a single event, technically referred to as ‘One Trial Learning’.
If you find this interesting see also transational analysis, and read the book The Primal Scream by Dr Arthur Janov.
beans up the nose
This lovely analogy illustrates how accentuating the negative can often produce the very result you are seeking to avoid. The metaphor is so strong that it gave rise to the expression ‘Beans up the Nose’, meaning to increase the likelihood of unwanted result by highlighting the potential for it to happen. Beans up the Nose is a great way to emphasise the need for managers to accentuate the positive – not the negative – when communicating instructions to their people.
A mother was preparing a meal for her young son. She emptied a tin of beans into a saucepan and put them on the stove to cook. Just then the phone rang – she was expecting a call and wanted to take it. Mindful that she’d be leaving her little boy unsupervised for a minute or two, and wanting to prevent him doing anything daft while she was out of the room, she firmly told him, “Stay here while I answer the phone. I’ll be back soon; don’t misbehave, and whatever you do, don’t go putting those beans up your nose…….”
elton mayo – the hawthorne effect
The Hawthorne Effect: the proposition that workers are more motivated more by emotional than economic factors (ie., by being involved and feeling important, rather than by an improvement in workplace conditions).
So called after workplace behavioural research by Elton Mayo at the Western Electric Company’s Hawthorne plant in Cicero, Chicago, 1927-32, which ran on without Mayo until 1937. Mayo was a founding father of industrial psychology, attached to Harvard University as professor of industrial research from 1926, laying the foundations for later gurus, notably Herzberg (Motivation and Hygiene Factors), Maslow (Hierarchy of Needs), McGregor (XY Theory), Peters and Waterman (‘In Search of Excellence’ etc).
At a peak, 20,000 Western Electric employees were subject to research by a team of Harvard scientists and up to 100 investigators. This massive ten year programme grew from the initial experiment in which improved lighting was installed to assess the effect on workers’ motivation and productivity. Sure enough, productivity increased, but productivity also increased in the ‘control group’ of workers where conditions were unchanged, except that they were informed they were part of the study. This was perhaps the earliest significant demonstration that people are not actually motivated by improving their workplace conditions (‘Taylorism’ – after FW Taylor – had been the common view, in which money and conditions were thought to be the prime motivators). The Hawthorne Effect, and the experiments at the Hawthorne plant, proved that people are mainly motivated not by economic factors, but emotional factors, such as feeling involved and receiving attention.
US navy stand-off story – how not to negotiate
This is the alleged transcript of an actual radio conversation between a US naval ship and Canadian maritime contact of the coast of Newfoundland in October 1995.
Americans: Please divert your course 15 degrees North to avoid a collision.
Canadians: Recommend you divert YOUR course 15 degrees South to avoid collision.
Americans: This is the captain of a US navy ship; I say again divert your course.
Canadians: No. I say again, you divert YOUR course.
Americans: THIS IS THE AIRCRAFT CARRIER USS LINCOLN, THE SECOND LARGEST SHIP IN THE UNITED STATES’ ATLANTIC FLEET. WE ARE ACCOMPANIED BY THREE DESTROYERS, THREE CRUISERS AND NUMEROUS SUPPORT VESSELS. I DEMAND THAT YOU CHANGE YOUR COURSE 15 DEGREES NORTH, THAT’S ONE FIVE DEGREES NORTH, OR COUNTER-MEASURES WILL BE UNDERTAKEN TO ENSURE THE SAFETY OF THIS SHIP.
Canadians: We are a lighthouse; your call.
the room service story (understanding, communicating, interpretation, empathy, meaning)
This story was widely circulated by email around 2001-2, within which it was alleged to be the genuine transcript of a telephone conversation between a guest and room-service in a hotel in Asia in the late 1990’s, and it supposedly appeared in an item published in the Far East Economic Review. This is all false however:
Room Service is in fact a chapter from US comedian Shelley Berman’s book ‘A Hotel Is A Funny Place’. In truth the incident portrayed never happened in any hotel, in Asia or otherwise. Shelley Berman wrote ‘Room Service’ as a piece of fictional humour. Shelley Berman has kindly allowed this extract to appear on this site, and this permission is gratefully acknowledged.
As well as being one of the best loved and funniest comedians and writers of his generation, Shelly Berman is also a lecturer at the University of Southern California. More information at: Shelley Berman.
The Room Service fictional exchange is a wonderful and amusing example of how and why the effective understanding relies not only on language and communication, but also on the abilities of the communicators to interpret meaning.
excerpt from “A Hotel is a Funny Place …”
Please be advised that the material herein is a chapter from Shelley Berman’s copyrighted book.
Reading hints: You are on the phone. The other party is also in the hotel.
Morny, rune sore-bees.
Oh sorry, I thought I dialed room service.
Rye. Rune sore-bees. Morny. Jewish to odor sunteen?
Yes, order something. This is room thirteen-on-five. I want…
Okay, torino-fie. Yes plea?
I’d like some bacon and eggs.
Ow July then?
What?
Aches.
Ow July then? Pry, boy, pooch…?
Oh, the eggs! How do I like them? Sorry. Scrambled, please.
Ow July thee baycome? Crease?
Crisp will be fine.
Okay. An Santos?
What?
Santos. July Santos?
Uh…I don’t know…I don’t think so.
No? Judo one toes?
Look. I really feel bad about this, but I just don’t know what judo-one-toes means. I’m sorry…
Toes! Toes! Why Jew Don Juan toes? Ow bow eenlish mopping we bother?
English muffin! I’ve got it! You were saying toast! Fine. An English muffin will be fine. We bother? No. Just put the bother on the side.
Wad?
I’m sorry. I meant butter. Butter on the side.
Copy?
I feel terrible about this but… Copy.
Copy, tea, mill…
Coffee!! Yes, coffee please. And that’s all.
One Minnie. Ass rune torino-fie, strangle-aches, crease baycome, tossy eenlish mopping we bother honey sigh, and copy. Rye?
Whatever you say. Okay.
Tenjewberrymud.
You’re welcome.

Next time someone sends you the email you can inform them: the above dialogue never actually took place in any hotel anywhere in the world. The Room Service dialogue is an intentionally composed humorous fiction and is entirely the creation of Shelley Berman, written as a chapter in his book, A Hotel Is A Funny Place, publishers Price/Sloan/Stern. Copyright 1972 and 1985. Any claim to the contrary is utterly baseless and erroneous.
Room Service is © Shelley Berman. Used with Permission with grateful thanks to Shelley Berman. Not to be sold or published.
the six phases of a project
Enthusiasm
Disillusionment
Panic
Search for the guilty
Punishment of the innocent
Praise and honours for the non-participants
the MSWindows car and the power of PR
You may have seen this before as it’s been widely circulated over the internet. Whether it’s true or not, it’s a great example of the risks of arrogant PR, and then in response, fantastic PR that’s utterly in tune with the mood of the moment. Despite all this though, a supremely powerful supplier can, while they remain supremely powerful, re-write the rules of customer service.
At a computer expo (COMDEX) around 1997/98, Bill Gates of Microsoft was reported to have compared the computer and automotive industries, saying that “If General Motors had kept up with technology like the computer industry does, we would all be driving around in twenty-five dollar cars that go 1,000 miles to the gallon.”
In response to this alleged outburst, GM are supposed to have issued a press release along the following lines, stating:
If GM had developed technology like Microsoft, we would all be driving cars with the following characteristics -
For no reason at all your car would crash twice a day, and you would have not a single clue as to the cause.
Every time they re-painted the lines on the road you would have to buy a new car.
Occasionally your car would die on the freeway for no reason, and you would just accept this, re-start and drive on.
Occasionally, executing a manoeuvre such as a left turn would cause your car to shut down and refuse to re-start, in which case you would have to re-install the engine.
Only one person at a time could use the car, unless you bought ‘Car95′ or ‘CarNT’, but then you’d have to buy more seats.
(Macintosh would make a car that was powered by the sun, reliable, five times as fast, and twice as easy to drive, but it would only run on five percent of the roads. The Macintosh car owners would have to buy expensive GM upgrades for their cars which would make them run much slower.)
The oil, water temperature and alternator warning lights would be replaced by a ‘general car default’ warning light.
The car’s new seats would force everyone to have the same size butt.
The airbag system would say ‘Are you sure?’ before activating.
Occasionally for no reason whatsoever, your car would lock you out and refuse to let you in until you simultaneously lifted the door handle, turned the key, and grabbed hold of the radio antenna.
GM would require all car buyers to additionally purchase a deluxe set of Rand McNally road maps (which would be a GM subsidiary) even though the customer neither needed nor wanted them. Attempting to do without these extras would immediately cause the car’s performance to diminish by fifty percent or more. Moreover, GM would become a target for investigation under the anti-trust laws by the Justice Department.
Every time GM introduced a new model, car buyers would have to learn to drive all over again because none of the controls would operate in the same manner as in the previous car.
And you’d need to press the ‘Start’ button to shut off the engine.
the balloon story
A man in a hot air balloon is lost. He sees a man on the ground and reduces height to speak to him.
“Excuse me, can you tell me where I am?”
“You’re in a hot air balloon hovering thirty feet above this field,” comes the reply.
“You must work in Information Technology,” says the balloonist.
“I do,” says the man, “How did you know?”
“Well,” says the balloonist, “Everything you told me is technically correct, but it’s no use to anyone.”
“You must be in business,” says the man.
“I am,” says the balloonist, “How did you know?”
“Well,” says the man, “You don’t know where you are, you don’t know where you’re going, but you expect me to be able to help. You’re in the same position you were before we met, but now it’s my fault.”
monkey story on company policy
Start with a cage containing five monkeys.
Inside the cage, hang a banana on a string and place a set of stairs under it.
Before long, a monkey will go to the stairs and start to climb towards the banana.
As soon as he touches the stairs, spray all of the monkeys with cold water.
After a while, another monkey makes an attempt with the same result – all the monkeys are sprayed with cold water.
Pretty soon, when another monkey tries to climb the stairs, the other monkeys will try to prevent it.
Now, turn off the cold water.
Remove one monkey from the cage and replace it with a new one.
The new monkey sees the banana and wants to climb the stairs.
To his surprise and horror, all of the other monkeys attack him.
After another attempt and attack, he knows that if he tries to climb the stairs, he will be assaulted.
Next, remove another of the original five monkeys and replace it with a new one.
The newcomer goes to the stairs and is attacked.
The previous newcomer takes part in the punishment with enthusiasm.
Again, replace a third original monkey with a new one.
The new one makes it to the stairs and is attacked as well.
Two of the four monkeys that beat him have no idea why they were not permitted to climb the stairs, or why they are participating in the beating of the newest monkey.
After replacing the fourth and fifth original monkeys, all the monkeys that have been sprayed with cold water have been replaced.
Nevertheless, no monkey ever again approaches the stairs.
Why not?
Because as far as they know that’s the way it’s always been around here.
And that’s how company policy begins …
ten ways to murder creativity
Always pretend to know more than everybody around you.
Get employees to fill in time sheets.
Run daily checks on progress of everyone’s work.
Ensure that highly qualified people do mundane work for long periods.
Put barriers up between departments.
Don’t speak personally to employees, except when announcing increased targets, shortened deadlines and tightened cost restraints.
Ask for a 200-page document to justify every new idea.
Call lots of meetings.
Place the biggest emphasis on the budget.
Buy lots of computers.
the story of the scorpion and the frog
Once upon a time a scorpion wanted to cross a brook. On the bank he saw a frog and asked if the frog would give him a ride to the other side.
“Oh no,” says the frog, “If I carry you on my back you will sting me.”
“But why would I sting you when we would both surely perish,” replied the scorpion.
The frog eventually conceded that the scorpion had a point, and agreed to the request.
Half way across, the scorpion stang the frog, and they both began to drown.
“But why did you break your word and sting me, knowing it would be certain death for us both?” cried the frog.
“Because it is in my nature.” said the scorpion.
the rocks in bucket time management story
Use this time management story to show how planning is the key to time management.
Start with a bucket, some big rocks enough to fill it, some small stones, some sand and water.
Put the big rocks in the bucket – is it full?
Put the small stones in around the big rocks – is it full?
Put the sand in and give it a shake – is it full?
Put the water in. Now it’s full.
The point is: unless you put the big rocks in first, you won’t get them in at all.
In other words: Plan time-slots for your big issues before anything else, or the inevitable sand and water issues will fill up your days and you won’t fit the big issues in (a big issue doesn’t necessarily have to be a work task – it could be your child’s sports-day, or a holiday).
rocks in the bucket story – alternative funny version
A lecturer at a university is giving a pre-exam lecture on time management. On his desk is a bag of sand, a bag of pebbles, some big rocks and bucket. He asks for a volunteer to put all three grades of stone into the bucket, and a keen student duly steps up to carry out the task, starting with the sand, then the pebbles, then the rocks, which do not all fit in the bucket.
“The is an analogy of poor time management,” trills the lecturer, “If you’d have put the rocks in first, then the pebbles, then the sand, all three would have fit. This is much like time management, in that by completing your biggest tasks first, you leave room to complete your medium tasks, then your smaller ones. By completing your smallest tasks first you spend so much time on them you leave yourself unable to complete either medium of large tasks satisfactorily. Let me show you..”
And the lecturer re-fills the bucket, big rocks first, then pebbles, then sand, shaking the bucket between each so that everything fits.
“But Sir,” says one student, slouched at the back of the theatre “you’ve forgotten one thing..”
At which the student approaches the bucket, produces a can of lager, opens it and pours into the bucket. “No matter how busy you are,” quips the student with a smile, “there’s always time for a quick beer.” (Ack Simon Dedman)
murphy’s plough positive thinking story
Use this story to illustrate the risks of failing to use positive thinking.
McGinty, a farmer, needed to plough his field before the dry spell set in, but his own plough had broken.
“I know, I’ll ask my neighbour, farmer Murphy, to borrow his plough. He’s a good man; I’m sure he’ll have done his ploughing by now and he’ll be glad to lend me his machine.”
So McGinty began to walk the three or four fields to Murphy’s farm.
After a field of walking, McGinty says to himself, “I hope that Murphy has finished all his own ploughing or he’ll not be able to lend me his machine…”
Then after a few more minutes of worrying and walking, McGinty says to himself, “And what if Murphy’s plough is old and on it’s last legs – he’ll never be wanting to lend it to me will he?..”
And after another field, McGinty says, “Murphy was never a very helpful fellow, I reckon maybe he won’t be too keen to lend me his plough even if it’s in perfect working order and he’s finished all his own ploughing weeks ago….”
As McGinty arrives at Murphy’s farm, McGinty is thinking, “That old Murphy can be a mean old fellow. I reckon even if he’s got all his ploughing done, and his own machine is sitting there doing nothing, he’ll not lend it to me just so watch me go to ruin…”
McGinty walks up Murphy’s front path, knocks on the door, and Murphy answers.
“Well good morning Mr McGinty, what can I do for you?” says Murphy.
And McGinty says, with eyes bulging, “You can take your bloody plough, and you can stick it up your bloody arse!”

Send your favourite.

Other than the items for which specific copyright is shown (which must not be reproduced in any form), the use this material is free provided copyright (Alan Chapman 1995-2006) is acknowledged and reference or link is made to the www.businessballs.com website. This material may not be sold, or published in any form. Disclaimer: Reliance on information, material, advice, or other linked or recommended resources, received from Alan Chapman, shall be at your sole risk, and Alan Chapman assumes no responsibility for any errors, omissions, or damages arising. Users of this website are encouraged to confirm information received with other sources, and to seek local qualified advice if embarking on any actions that could carry personal or organisational liabilities. Managing people and relationships are sensitive activities; the free material and advice available via this website do not provide all necessary safeguards and checks. Please retain this notice on all copies.
© alan chapman 1995-2006 and other shown for certain items.
“);}//–>

Leave a Comment

Fortune must reads

The Fortune Must Reads
Booms and Busts

The Great Crash 1929 by John Kenneth Galbraith (1955). This concise, insightful history has never been out of print since it was first published. Why? “Every time it has been about to pass from print,” Galbraith himself wrote in 1997, “another speculative bubble … has stirred interest in the history of this, the great modern case of boom and collapse.”

Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay (1841). This chronicle of Holland’s tulip mania of 1634 and the South Sea Bubble of 1720, among other irrational crazes, is an engaging, perceptive account of humanity’s urge to plunge itself into speculative frenzies. Funny Money by Mark Singer (1985). For sheer entertainment value, Singer’s tale of the fall of the Penn Square Bank in Oklahoma—one of the first of the inside-a-scandal books—has never been topped. The Go-Go Years: The Drama and Crashing Finale of Wall Street’s Bullish ’60s by John Brooks (1973). Brooks, the late New Yorker writer, dissects the 1960s mutual fund boom with a panache that business writing hasn’t seen before or since.

The CorporationBarbarians at the Gate: The Fall of RJR Nabisco by Bryan Burrough and John Helyar (1990). This story of an iconic deal, the $25 billion leveraged buyout of RJR Nabisco (co-written by a FORTUNE senior writer), has all the stuff of great business journalism—skullduggery, cigars, trophy wives, and enough greed to sink Wall Street. Wretched excess has never read so well. Built to Last: successful habits of visionary companies by Jim Collins and Jerry I. Porras (1994). Begin with the simplest of questions: What makes great companies great? Then research the heck out of it. It’s a big, hairy, audacious goal—but then, this book coined the phrase. Chainsaw: The Notorious Career of Al Dunlap in the Era of Profit-at-Any-Price by John Byrne (1999). When Dunlap took his enthusiasm for mass firings from Scott Paper to Sunbeam, he left broken pieces and a stock price in free fall. Byrne takes the reader through the debacle in detail, an account that is spiced with the vinegar of a writer who truly loathes his subject. Who Says Elephants Can’t Dance? by Louis V. Gerstner (2002). Gerstner’s account of how he turned around IBM after taking over as CEO in 1993 contains valuable lessons for those who think “corporate culture” is consultant gobbledygook.

Decision MakingAnnapurna: A Woman’s Place by Arlene Blum (1980). Triumph mixes with disaster in this nail-biting account of the first all-woman attempt on an 8,000-meter peak—an expedition the author led. The Best and the Brightest by David Halberstam (1972). Halberstam’s masterful explanation of how the application of raw candlepower—in this case Robert McNamara’s whiz kids trying to apply what they learned at Ford Motor Co. to the Vietnam war—isn’t always enough.

In the Heart of the Sea: The Tragedy of the Whaleship Essex by Nathaniel Philbrick (2000). Back when the “oil industry” involved harpoons, a Nantucket whaling ship sinks in the Pacific—rammed by a whale that would inspire Melville’s Moby Dick. The harrowing odyssey that follows is a study in bad decision-making. The Killer Angels by Michael Shaara (1974). A Pulitzer-winning historical novel that places you at the Battle of Gettysburg in the shoes of the soldiers themselves—including Robert E. Lee as he contemplates one last, desperate charge. Thirteen Days: A Memoir of the Cuban Missile Crisis by Robert F. Kennedy (1969). R.F.K.’s spellbinding first-person account reads like a Tom Clancy novel and delivers powerful lessons about delegation and plain old good judgment. EconomicsCapitalism, Socialism, and Democracy by Joseph A. Schumpeter (1942). Ignore the title and skip straight to Chapter 7, “The Process of Creative Destruction.” Look around, and you’ll see it happening everywhere.
Everything for Sale: The Virtues and Limits of Markets by Robert Kuttner (1996). Free markets unleash entrepreneurial drive. They also produce the Asian financial crisis. Kuttner gets you thinking about why the invisible hand works and why it sometimes doesn’t. The General Theory of Employment, Interest, and Money, Chapter 12 by John Maynard Keynes (1936). For all his fame as a wordsmith, too much of Keynes’s work is dense and dated. The amazing Chapter 12 is something else: a timeless, witty, crystalline account of why financial markets confound and bewitch us.

Pop Internationalism by Paul Krugman (1996). Most of what’s said about international trade is bunk, the economist argues in a series of contentious and entertaining essays. Targeting the lazy thinking of politicians, journalists, and even fellow economists, Krugman instructs even as he attacks. The Wealth of Nations by Adam Smith (1776). Smith is often caricatured as a laissez-faire zealot. He wasn’t.

The Wealth of Nations is an eloquent argument in favor of liberty, enlightened government, and the intrinsic worth of the individual. No one has ever made a better case for the morality of capitalism. EthicsDen of Thieves by James Stewart (1991). In this morality tale, good (a crew of dogged government lawyers and detectives) triumphs over evil (Michael Milken, Ivan Boesky, Martin Siegel, and Dennis Levine). But evil gives it a rollicking run for its money.

The Informant by Kurt Eichenwald (2000). With its deadpan prose, startling plot, and you-are-there dialogue, Eichenwald’s book about a twisted informant at Archer Daniels Midland ranks with anything by le Carré for sheer suspense.

Leading Quietly: An Unorthodox Guide to Doing the Right Thing by Joseph L. Badaracco (2002). Finally, an ethics book for people who live in the real world. Recommended for people who want to keep their job and “do the right thing.” The Smartest Guys in the Room by Bethany McLean and Peter Elkind (2003). This riveting account of the Enron debacle (by two FORTUNE senior writers) is unsparing in laying the blame at the feet of all the guilty parties. It explains not just how Enron lost its way, but how all of Wall Street did as well.

The Way We Live Now by Anthony Trollope (1875). Trollope’s classic satire about Victorian London, where speculators and trust-fund fops “had but a confused idea of any difference between commerce and fraud,” feels eerily familiar to observers of modern corporate miscreants.

Globalization

Beijing Jeep: The Short, Unhappy Romance of American Business in China by Jim Mann (1989). The story of how AMC’s 1979 joint venture to produce Jeeps in Beijing ended in tears is perhaps the closest thing to a classic work on doing business in post-Mao China. It’s required reading for anyone venturing to the world’s most populous nation.

Development as Freedom by Amartya Sen (1999). Dictators around the world argue that a strong hand is needed for economic development; freedom can come later. Sen, a 1998 Nobel Prize winner, says they are dead wrong. Freedom is a foundation stone for development—democracies, he points out, don’t have famines.

The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else by Hernando de Soto (2000). For liberal types who are vaguely uncomfortable with property rights (unless the property is in, say, Aspen), Peruvian economist de Soto explains why they matter.

Nonzero: The Logic of Human Destiny by Robert Wright (2000). A dazzling mix of history, theology, economics, game theory, and evolutionary biology that paints the world’s increasing entwinement as a positive and possibly inevitable development.

The Prize: The Epic Quest for Oil, Money, and Power by Daniel Yergin (1991). Oil is the most important commodity on earth, the fuel of modern civilization. Yergin’s great achievement is to give readers a thorough grounding in why the world—and especially the Middle East—works the way it does, while all along appearing to simply spin an engrossing yarn. Workers: An Archaeology of the Industrial Age by Sebastio Salgado (1993). A Bangladeshi shipbreaker’s raised sledge. A Sicilian fisherman’s anxious gaze. A technician glistening in Kuwaiti oil. This stunning set of images—the work of an economist-turned-photographer—brings us deep into the world economy’s engine room.

Investing

The Essays of Warren Buffett: Lessons for Corporate America compiled by Lawrence Cunningham (1997). Buffett never wrote a book. Instead he poured his thinking about investments, managing, and corporate excesses into his annual letters to Berkshire Hathaway shareholders. Cunningham sifted through the 1979-96 bunch to create this best-of-Buffett anthology.

Fooled by Randomness: The Hidden Role of Chance in the Markets and in Life by Nassim Nicholas Taleb (2001). Taleb, a hedge fund manager, is equally disdainful of Wall Streeters and academics who claim to understand markets: They see patterns that don’t really exist. Almost everything, he argues, comes down to Lady Fortuna.

The Intelligent Investor: A Book of Practical Counsel by Benjamin Graham (1949). Warren Buffett has called this classic guide to value investing—recently updated by Money magazine senior writer Jason Zweig—”by far the best book about investing ever written.” What more do you need to know? Moneyball: The Art of Winning an Unfair Game by Michael Lewis (2003). Billy Beane, the Oakland A’s general manager profiled here, isn’t just a smart baseball guy with new ideas. He’s an exemplar of how to succeed by zigging when everyone else is zagging—which of course is also how great investors make money.

LeadershipNever Give In: The Best of Winston Churchill’s Speeches edited by grandson Winston S. Churchill (2003). “Never give in—never, never, never, never, in nothing great or small, large or petty…. Never yield to force; never yield to the apparently overwhelming might of the enemy.” On Leadership by John Gardner (1990). Gardner sees leadership as an ever-evolving learned skill separate from status or power, and he carefully dissects its many elements—without resorting to cute language or strained metaphors.

Parting the Waters: America in the King Years 1954-63 by Taylor Branch (1988). This spellbinding tale of how Martin Luther King Jr. and others built the civil rights movement shows creative, disruptive leadership in action. King and his comrades possessed none of the conventional tools of power but found ways to wield it nonetheless.

Personal History by Katharine Graham (1997). The late Graham grew up shy and insecure and stayed that way till her glamorous husband shot himself. Then she found the strength to take over Washington Post Co., which hit new financial and journalistic highs during her tenure. Her defense of the First Amendment made her a hero; her dinner parties made her a legend.

Titan: The Life of John D. Rockefeller Sr. by Ron Chernow (1998). If 75 books were burning and you could save just one, this might be it: a biography as powerful and detail-minded as its subject. Negotiating and

ManagingA Civil Action by Jonathan Harr (1995). Harr’s story—an attorney fights polluters over carcinogenic toxic waste they left in a town’s groundwater—reads like a thriller. It shows how one dogged individual can take on the formidable resources of two corporate giants.

The Effective Executive by Peter Drucker (1966). Before you can manage anyone else, you’ve got to learn to manage yourself. In this slim volume, Drucker tells you how. Remember Every Name Every Time by Benjamin Levy (2002). Here’s a book that delivers on its promise. Read it, and you’ll never stare blankly at an employee or a client again.

Taken for a Ride: How Daimler-Benz Drove Off with Chrysler by Bill Vlasic and Bradley A. Stertz (2000). A tale of how the merger unfolded—and how Daimler’s Jürgen Schrempp always managed to stay two moves ahead of Chrysler’s Bob Eaton.

Women Don’t Ask: Negotiation and the Gender Divide by Linda Babcock and Sara Laschever (2003). The first book to adequately explain the dramatic differences in how men and women negotiate and why women so often fail to ask for what they want at work (starting with equal pay). Every male manager in America should read it.

Office PoliticsLive From New York: An Uncensored History of Saturday Night Live by Tom Shales and James Andrew Miller (2003). Given the behind-the-scenes sex, drugs, and screaming matches, the most amazing thing about Saturday Night Live is that it ever managed to get on the air, let alone stay there for 30 seasons. Consider this oral history a handbook for managing the highly creative and the borderline deranged.

The Price of Loyalty: George W. Bush, the White House, and the Education of Paul O’Neill by Ron Suskind (2004). No, George W. Bush (“a blind man in a roomful of deaf people”) does not come off well. But whatever your politics, you’ll be fascinated by the dishy descriptions of how Bush, Karl Rove, and Dick Cheney operate around the office.

The Prince by Niccolò Machiavelli (1513). Machiavelli wasn’t as Machiavellian as he is made out to be. Today we’d probably call him “pragmatic.” But his treatise—penned after losing his political job in Florence—was shockingly frank. Power and idealism, he said, don’t really mix.

Something Happened by Joseph Heller (1974). This novel—Heller’s follow-up to Catch-22—portrays one man struggling with the American dream and a Kafkaesque office where perseverance is the key to promotion.

PowerFather Son & Co: My Life at IBM and Beyond by Thomas Watson Jr. and Peter Petre (1990). A son’s-eye view (co-written by a FORTUNE senior editor at large) of how Watson Senior started and ran IBM and how Junior took it over. Told in an intensely personal voice, by turns shrewd, grudging, exasperated, and kind, it is the operatic story of power passing between generations.

The 48 Laws of Power by Robert Keister (1998). The overarching thesis—deceive others lest they deceive you—is appallingly cynical. The wealth of observations (“The longer I keep quiet, the sooner others move their lips”) is eminently useful. Indecent

Exposure: A True Story of Hollywood and Wall Street by David McClintick (1982). McClintick turns the federal case against Columbia Pictures and David Begelman into a drama of power—East Coast moneymen like Herb Allen vs. West Coast production honchos—and lets you watch, in intimate boardroom detail, as they tear at one another’s throats.

Influence: The Psychology of Persuasion by Robert Cialdini (1993). How do you get people to say yes? To answer that question, psychologist Cialdini mines nuggets as diverse as mother turkeys, pickup situations, Hare Krishnas, and the unlikely power of the word “because”—and identifies six principles that entice people to buy your stuff.

The Power Broker: Robert Moses and the Fall of New York by Robert Caro (1974). Moses, the legendary city builder, defied mayors, governors, and even a President, constructing a political machine that lasted for decades. Caro’s classic biography is one of the most exhaustive—and exhausting—studies of American power ever written.

Project ManagementAmerican Steel: Hot metal men and the resurrection of the rust belt by Richard Preston (1991). If Nucor employees can get molten metal flowing in one unbroken strip, they’ll revolutionize the steel industry. If something goes wrong, their new plant can blow up. The author of The Hot Zone makes the tale truly riveting.

The Billion-Dollar Molecule: One Company’s Quest for the Perfect Drug by Barry Werth (1994). No writer has ever gotten as deeply inside a company as Werth got inside biotech Vertex. He offers deep insight into the difficulties of drug discovery, the trials and tribulations of startups, and the conflict between great science and good business. Cadillac Desert: The American West and Its Disappearing Water by Marc Reisner (1990).

The West was not won by gunslingers and whores with hearts of gold. It was won by people who gave it water. This is the best book ever on how politics, business, ambition, and most of the seven deadly sins can work to literally shape the landscape of America.

The Making of the Atomic Bomb by Richard Rhodes (1986). Reaching far beyond Los Alamos and the Manhattan Project, this hefty tome meticulously pieces together one of the most important and terrifying scientific projects in history.

StrategyThe Art of War by Sun Tzu (circa 500 B.C.). What may be the greatest book on war ever written contains such aphorisms as “All warfare is based on deception” and “When the army engages in protracted campaigns, the resources of the state will not suffice.” It’s time-tested poetry for the strategic mind. Black

Hawk Down: A Story of Modern War by Mark Bowden (1999). No one—not the Pentagon, not the spooks, and certainly not the soldiers rappelling from helicopters into the middle of Mogadishu—had any idea of the hell they were getting into. Bowden’s history of the humiliating U.S. incursion into Somalia is an eloquent treatise on how not to plan an operation.

Information Rules: A Strategic Guide to the Network Economy by Carl Shapiro and Hal Varian (1997). If most writing from the dot-com era reads like 17th-century medicine (give the patient mercury?), here’s a book that that holds up. No, the laws of economics haven’t changed. Shapiro and Varian show how they apply to the world of information.

Only the Paranoid Survive by Andrew S. Grove (1996). Think of this as a Special Forces handbook for corporate managers. Grove, a co-founder of Intel and its current chairman, shows you squarely how to thrive in the most feared of business environments: one where competition, technology, or the very rules of engagement have suddenly changed.

The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell (2000). What do bestselling novels, crime waves, and yawning have in common? They’re all examples of how ideas and group behaviors can “tip” from fad into epidemic. Gladwell’s book is filled with examples of eclectic freethinkers using the phenomenon to their advantage.

Technology and Innovation

The Last Lone Inventor: A Tale of Genius, Deceit, and the Birth of Television by Evan I. Schwartz (2002). This is a cautionary tale of the brilliant visionary (Philo T. Farnsworth) up against Big, Determined Business. You can guess who wins.

New and Improved: The Story of Mass Marketing in America by Richard Tedlow (1990). Who invented the shopping cart? What become of Coke-Ola, Co Kola, and Koke? When did consumers first appear on the American continent? An eminent business historian answers questions you wish you’d thought to ask. They Made America: Two Centuries of Innovation from the Steam Engine to the Search Engine by Harold Evans (2004). Evans takes us from the steam engine to the search engine, profiling 53 of the top innovators in U.S. history. The trait they share isn’t greed or the lust for fame, but the drive to democratize—the often shocking desire to bring to the many products previously enjoyed only by the few.

Sam Walton: Made in America by Sam Walton with John Huey (1992). Most great ideas really aren’t that complicated, and Wal-Mart is a perfect example. To wit: Put discount stores in towns that the other retailers thought were too small to support them. Walton’s words (written with the editorial director of Time Inc., FORTUNE’s parent) still resonate with simple wisdom.

The Victorian Internet: The Remarkable Story of the Telegraph and the 19th Century’s On-line Pioneers by Tom Standage (1998). A new technology will connect everyone! It’s making investors rich! It’s the Internet boom—except Samuel Morse is there!

Leave a Comment

MBA ESSAY

Big Do’s for the B-school essay

Do’s for the B-school essay

1. Communicate that you’re a proactive, can-do sort of person. Leaders take initiative and aren’t thwarted by roadblocks.

2. Put yourself on ego alert; stress what makes you unique, not what makes you great. You want admissions officers to respect and like you.

3. Position yourself as a stand-out from the crowd; emphasize your distinctiveness.

4. Make sure your leadership qualities really come through. Admissions officers want to hear about skills that enabled you to rally folks around your solution.

5. Communicate specific reasons why you’re a “fit” for a school, (but avoid vague, fluffy statements such as “I am the ideal or perfect candidate for you program.”) Do your research. Relate your specific interests to the school’s academics, specific professors, culture, quality of life, and location. If you use an essay for more than one school, make sure each is tailored to be school-specific.

6. Bring passion to your writing—admissions officers want to know what you’re really excited about.

7. Break out of your perceived mold. Use the essays to challenge any preconceived notions about who you are. Are you a numbers guy or engineer type? Challenge perceptions with unexpected portrayals that say, “There’s more to me than you think.” It could be that you’re passionate about cooking, or that you organize a game of hoops every Saturday.

8. Play up an unorthodox path to b-school. Admissions officers appreciate risk-takers. But be convincing about your ability to handle the program, especially quantitative skills that schools can take for granted in applicants in finance.

9. Use your gender, ethnicity, minority, or foreign background—but only if it has affected your outlook or experiences.

10. Avoid too many sentences that begin with “I.” Use examples and anecdotes instead.11. Be subtle. If you call too much attention to a problem, and becomes a bigger problem.

12. Fill your essays with plenty of real-life examples to support your thesis and bring your story to life.

13. Show a sense of humor or your vulnerability. These qualities make you likeable. They make your stories more personal.

14. Don’t write in a vacuum. Make sure that each of your essays reinforces and builds on the others. Think of each essay as one note in a song.

Leave a Comment

Lessons from Apprentice

Lessons from Apprentice

I haven’t missed an episode of Apprentice [1 & 2] so far. Appretice 1 was a great success. Apprentice 2 is currently underway and had created huge expectations in the beginning of the show. But lot of people are disappointed with final candidates, especially with Jennifer M, as evident from discussion forums, groups and blogs. I absolutely hate her. Just one final episode is remaining to discover the true Apprentice for Donald Trump . Kelly Vs Jennifer M. Who will win? I am hoping that Kelly wins. Only 3 more days to go…It’s a pity that European broadcasters don’t show the Apprentice season. So, I download it from web through bittorrent and watch it.
Each episode teaches a very valuable lesson. The following are the “lessons learned” this season.
How to Conduct a Successful Creative Brainstorming Session
How to Make Sound Business Decisions
How to Manage a Budget
How to Earn Respect as a Leader
How to Sell Persuasively
How to Develop a Winning Competitive Strategy
How to Build a Cohesive Team
How to Lead with Passion
How to Resolve Conflicts
How to be an Effective Project Manager
How to Delegate Successfully
How to Communicate with Your Boss
How to Market a New Product
How to Interview for the Job You Want

Leave a Comment

Older Posts »