Hello. Today I would like to write a response and expound on the topics found in a great article that I received in an email this morning from the Under30CEO.com blog. If you are unfamiliar with this organization (as I'm sure you are), it is basically a network of young, like-minded entrepreneurs for idea collaboration and support. Anyway, In a nutshell, the article addresses our responsibility, as "Generation Y", to transform the sustainability movement from a trending idea to a seamless integration into everyday activity.
You can click here to read the article, if you like, before you continue reading my "2 cents".
I share a common feeling with the author- that previous generations are to blame for the deterioration of the planet/depletion of its natural resources. I don't hold this judgment in contempt (after all, had I been born 30-80 years earlier, I would have been capitalizing right along side them), but I have always called a spade a spade. There was a clear lack of forethought in commercial expansion, resource management, and overall- a blatant disregard for product quality/composition. Though the entrepreneurs of old are responsible for providing these less-sustainable goods and services, the free market system is driven by consumer demand. So basically, it was either feed the beast or sit around and be poor while your competition happily takes up your slack. The consumers themselves were wanting more and more and less expensive and less expensive. Of course the "corporate machine" was to take off! (remember this next time your "Occupying")
But now days, as consumers are changing their purchasing habits, and consciously factoring environmental awareness into their purchasing trends, young business people (and now old, alike) are changing the way those products/services are produced and offered. I want to highlight a great term referenced in the article:
cradle to cradle. This is life-cycle concerning a product that has no adverse health affects on you personally, and can return, organically, back to the earth upon expiration of that life-cycle. It may seem like more of a dream today, but I promise you that this will not only be pervasive market-wide (and sooner than you think...), but will ultimately be mandated in the future. Why the inhibition on freedom and creativity? Because we are now cleaning up someone else's mess and there will be no other option. This could be 2100 by the time that occurs, but it will happen.
Once the change is made in the consumers mind, the change occurs in the producers of that product or service. It is our responsibility, as business leaders, to cultivate that mental transformation. Like a shepherd herds his flock, we must steer consumers towards a responsible and sustainable lifestyle that has true lasting power and will enhance their life experience like never before. Without making these changes (from both ends) rather quickly, our world will continue to dig itself further into a rut. And that rut will ironically swallow us whole, just as we did our planet's resources in the matter of a few hundred years. Thanks for listening...
A Different Perspective
Friday, December 23, 2011
Monday, June 20, 2011
The Concept of Free in 21st Cenctury Commerce
I have been very busy this whole spring, so I apologize to the two or three people who have been waiting on the edge of their seats for this post to be published. I most recently returned from Colorado for a Dispatch show. To see photos from the trip, please visit the travel blog @ RC's Travels. As I've seen over the past couple of months (in-lieu of writing this), the economy is buzzing right now in America. Everywhere you turn, there is a new venture starting and capitalizing on recent changes in legislation and economic trends.
I recently finished a book by Chris Anderson entitled "Free",
which highlights a new marketing trend that is rather
unprecedented in both its technique and its potential impact on
consumer spending as time progresses. Now, goods and services
could actually be offered "free of charge" without expected
compensation later or an another form.
In the "all-digital" world, and with an ever-more accessible network
of users (and their devices), the ability to promote an idea is
much simpler than before. With this radical new way to get brand
exposure, the basis of a free service would generate traffic and
the enterprise would be supported on adds and premium content.
Creating this market brought down the cost of the service, and thus
made it more accessible to the small business community.
Take YouTube for instance: YouTube offers video streaming/
sharing services free of charge. this is supported by targeted
advertising via their parent company, Google (and more
specifically Google Ads). They never expect you to pay them for
uploading all those kitten videos, but you can pretty much expect a
humane society or Eukanuba pet food ad in the margin above your
video.
This "completely free" business model is coming to fruition for
the first time in history. The same can be said for Facebook and
Twitter. In these examples, you can thank the tech boom for
generating the products and services that make these business
models actually sustainable. Networking- the ability to reach
millions or billions of people as opposed to hundreds or thousands,
brought down those costs, and firms realized that they would make
more money on volume (the volume of free service users/revenue
stream(s) that support that service).
Before this "free concept" emerged, the word generally
denoted "buy one, get one free" or some sort of cost-masking
scheme. But this new business model does actually allow users to
actively participate in a service without every having to sacrifice
financially for that service.
As time progresses and generations age, the exposure to the "free
concept" by consumers will cause the trend radiate out to all
possible business models as they (the consumers) become more
accustomed to the free aspect of the transaction, in what ever form
that may be. The challenge will be for businesses, large and small,
to flex with the marketing trends and use it to their advantage. The
enterprise that employs the "free concept", where relevant, in their
business, is one that is betting on a solid, long-term marketing
strategy that will keep their brand relevant for many years to come.
I recently finished a book by Chris Anderson entitled "Free",
which highlights a new marketing trend that is rather
unprecedented in both its technique and its potential impact on
consumer spending as time progresses. Now, goods and services
could actually be offered "free of charge" without expected
compensation later or an another form.
In the "all-digital" world, and with an ever-more accessible network
of users (and their devices), the ability to promote an idea is
much simpler than before. With this radical new way to get brand
exposure, the basis of a free service would generate traffic and
the enterprise would be supported on adds and premium content.
Creating this market brought down the cost of the service, and thus
made it more accessible to the small business community.
Take YouTube for instance: YouTube offers video streaming/
sharing services free of charge. this is supported by targeted
advertising via their parent company, Google (and more
specifically Google Ads). They never expect you to pay them for
uploading all those kitten videos, but you can pretty much expect a
humane society or Eukanuba pet food ad in the margin above your
video.
This "completely free" business model is coming to fruition for
the first time in history. The same can be said for Facebook and
Twitter. In these examples, you can thank the tech boom for
generating the products and services that make these business
models actually sustainable. Networking- the ability to reach
millions or billions of people as opposed to hundreds or thousands,
brought down those costs, and firms realized that they would make
more money on volume (the volume of free service users/revenue
stream(s) that support that service).
Before this "free concept" emerged, the word generally
denoted "buy one, get one free" or some sort of cost-masking
scheme. But this new business model does actually allow users to
actively participate in a service without every having to sacrifice
financially for that service.
As time progresses and generations age, the exposure to the "free
concept" by consumers will cause the trend radiate out to all
possible business models as they (the consumers) become more
accustomed to the free aspect of the transaction, in what ever form
that may be. The challenge will be for businesses, large and small,
to flex with the marketing trends and use it to their advantage. The
enterprise that employs the "free concept", where relevant, in their
business, is one that is betting on a solid, long-term marketing
strategy that will keep their brand relevant for many years to come.
Monday, February 28, 2011
Social Networking:The Impact and Those Behind It
Today I'd like to write a piece that is more opinion-based than previous articles that I have written. I will address an observation that I've made concerning social networking, and more specifically the people behind these enterprises. It takes a very unique individual to bring a concept, like Facebook, to fruition. One comprised of blind ambition, stubborn determination, and an unwillingness to compromise in pursuit of the goal. Mark Zuckerburg is a prime example of this kind of individual. His youth gives him a perspective of the world that is almost ignorant of those factors that would inhibit his parents' generations acceptance or interest. Meaning, his parents may have seen less value in social networking, had they heard of the concept, at its inception. The young people brought these social networking trends, such as Facebook and Twitter, into pop culture and into your daily routine. Not to say that the older generations don't "comprehend" this idea, or lack the foresight to predict the "next big thing"; but rather that a younger individual was subjected to very different activities, stimulations, and attention obligations in their upbringing which altered how their brain developed. There are plenty of older individuals who will profit well from these enterprise's (such as investors), but we're talking about who conceived the idea and acted accordingly. In this article, we will be discussing what comprises the individuals behind the social networking "phenomena" and how they differ from their elders. But first, lets look at some examples of how their creations have effected society in the modern age.
Having the ability to connect both directly and in real-time on this social networking platform is taken for granted in the "Land of the Free". But in more restrictive countries, such as Egypt, this pervasive concept is relatively new. When their youth get access to this kind of technology, things begin to change. Suddenly, bureaucratic censorship and communication restraints can't contain the message at large, and 15,000 people can all agree to congregate somewhere and riot in real time. What an incredible milestone to witness being achieved. This societal alteration, as it becomes more prevalent in the global fabric of an ever-more connected world, is quite possibly the largest impact that social networking will make. Sure, the return on investment is good for the American/world economy, and new markets have been created to make advertising more effective, where jobs are thus, created, and Mark Zuckerburg grows his net worth into the billions by the time he's thirty; But the everlasting change that will be chiseled on the wall of time is much greater. The ability to furnish the masses with open communication allows the masses to share ideas and information, which expands their presence in society and loosens the immediate grip of power.
History is filled with prime examples of people, in times of physical and intellectual growth, who utilize their enhanced perspective to create something monumental in history. Take Nicola Tesla, for example. As he formulated an innovative way to harness the power of energy in a useful manor, the world was about to change in a very major way. And for an interesting parallel, Tesla sought a world where all power would be locally generated (Wardenclyffe Tower) on a globally interconnected network. And without global connectivity (the Internet, in this case), the tech-boom could not have occurred, nor would there have been a reason for this occurrence. But Zuckerburg was raised in the 80s and 90s, in the height of technological innovation. The innovation especially occurred within the field of information systems, and that was the world, as he understood it. The concept of global connectivity via local interaction was not so far out. Where many parents dismiss Facebook, Twitter, and the like, their children only know a world where this activity is the norm (and often 5-10 times a day). Zuckerburg saw value in trusted access to so much willingly-disclosed personal information, and this good foresight has snowballed into one of the world's largest companies. What a phenomena, right? Perhaps to the masses; but in Zuckerburg's mind, I'm sure this prophecy fulfilled itself just as he intended.
Old heads describe the "me" generation as one that desires immediate contentment and lacks self-discipline. This is certainly true, though only to an extent. In 1993, had I wanted to find a particular clip from a movie, I would put the VHS in my VCR and rewind/fast-forward to my desired point. Then came DVD, where i could skip chapter by chapter, making the process faster and more organized. Then came YouTube, where I could get on my computer and hope my desired scene had been uploaded by one of the hundreds of millions of site contributors. Now I have the YouTube app on my iPhone and I access it immediately, 3 times a day. We constantly strive to simplify our lives and streamline the chaos of information that is coming into our heads. And though there is nothing wrong with checking Twitter 8 times a day, this action must be compensated by a clear understanding of priorities and the ability to free yourself of the distraction, should that balance fall out of harmony. Perhaps, the one upside to the "instant gratification mentality" is that our ideas are shared more freely. This causes factions to unite and change can be accomplished. In the tech acceleration of the 1980s-2000s, the youth is growing up in a totally different world and this shapes the way their mind functions, for better or for worse. But it takes these kinds of individuals to innovate, in both business and society, and change our lives as a result.
Having the ability to connect both directly and in real-time on this social networking platform is taken for granted in the "Land of the Free". But in more restrictive countries, such as Egypt, this pervasive concept is relatively new. When their youth get access to this kind of technology, things begin to change. Suddenly, bureaucratic censorship and communication restraints can't contain the message at large, and 15,000 people can all agree to congregate somewhere and riot in real time. What an incredible milestone to witness being achieved. This societal alteration, as it becomes more prevalent in the global fabric of an ever-more connected world, is quite possibly the largest impact that social networking will make. Sure, the return on investment is good for the American/world economy, and new markets have been created to make advertising more effective, where jobs are thus, created, and Mark Zuckerburg grows his net worth into the billions by the time he's thirty; But the everlasting change that will be chiseled on the wall of time is much greater. The ability to furnish the masses with open communication allows the masses to share ideas and information, which expands their presence in society and loosens the immediate grip of power.
History is filled with prime examples of people, in times of physical and intellectual growth, who utilize their enhanced perspective to create something monumental in history. Take Nicola Tesla, for example. As he formulated an innovative way to harness the power of energy in a useful manor, the world was about to change in a very major way. And for an interesting parallel, Tesla sought a world where all power would be locally generated (Wardenclyffe Tower) on a globally interconnected network. And without global connectivity (the Internet, in this case), the tech-boom could not have occurred, nor would there have been a reason for this occurrence. But Zuckerburg was raised in the 80s and 90s, in the height of technological innovation. The innovation especially occurred within the field of information systems, and that was the world, as he understood it. The concept of global connectivity via local interaction was not so far out. Where many parents dismiss Facebook, Twitter, and the like, their children only know a world where this activity is the norm (and often 5-10 times a day). Zuckerburg saw value in trusted access to so much willingly-disclosed personal information, and this good foresight has snowballed into one of the world's largest companies. What a phenomena, right? Perhaps to the masses; but in Zuckerburg's mind, I'm sure this prophecy fulfilled itself just as he intended.
Old heads describe the "me" generation as one that desires immediate contentment and lacks self-discipline. This is certainly true, though only to an extent. In 1993, had I wanted to find a particular clip from a movie, I would put the VHS in my VCR and rewind/fast-forward to my desired point. Then came DVD, where i could skip chapter by chapter, making the process faster and more organized. Then came YouTube, where I could get on my computer and hope my desired scene had been uploaded by one of the hundreds of millions of site contributors. Now I have the YouTube app on my iPhone and I access it immediately, 3 times a day. We constantly strive to simplify our lives and streamline the chaos of information that is coming into our heads. And though there is nothing wrong with checking Twitter 8 times a day, this action must be compensated by a clear understanding of priorities and the ability to free yourself of the distraction, should that balance fall out of harmony. Perhaps, the one upside to the "instant gratification mentality" is that our ideas are shared more freely. This causes factions to unite and change can be accomplished. In the tech acceleration of the 1980s-2000s, the youth is growing up in a totally different world and this shapes the way their mind functions, for better or for worse. But it takes these kinds of individuals to innovate, in both business and society, and change our lives as a result.
Wednesday, February 9, 2011
"No" Today Doesn't Necessarily Mean "No" Tomorrow
As we've all seen in the past 4 years, the housing market has declined, to say the least, and hit a sensitive economic nerve that hadn't been strained in years. In mid-2008, there were less than 1.4 million houses in foreclosure and the economy was already feeling the powerful, preliminary effects of the imminent "Great Recession". In January of 2011 alone, 100,000 home-owners were expected to face this gruesome process; bringing the total number of homes subject to foreclosure to over 5 million. 4.6% of total U.S. households are at risk or currently undergoing the process, which translates into nearly 1 in every 20 homes. That is a sobering figure and putting it into a micro perspective (1 in 20 homes) may cause you to wonder which of your neighbors are struggling with their own finances. Bloomberg.com quotes industry professionals predicting over 6 million homes getting seized by the banks by 2013. Right in the heart of the credit bubble preceding the recession, home values increased at roughly twice the rate of median household income. For future generations: this little indicator is an easy way to predict that a storm is brewing and should have been the obvious handwriting on the wall.
Whether deserved as a consequence of their own actions or brought on by misleading sales tactics of an over-ambitious agent, the number of individuals who possess properties that are classified as "under water" (aka the property value is less than the current value of the mortgage) or, perhaps, subject to the premium spike of the adjustable-rate mortgage, are increasing as the months progress. But are we not emerging from economic instability? Has your 401k not returned a well-missed 30% in the past 4 quarters? And though jobs are slow growing, the massive wave of lay-offs have generally subsided, correct? Yes, all of those things are completely true. But please don't think that housing has stabilized. Thankfully but perhaps arguably, President Obama instituted federal policy (i.e. first time home buyers credit, temporarily freezing foreclosures, etc.) that gave a crutch to an injured sector of the economy, while giving hope to those failing to see the bottom. In reality, we have yet to see the true bottom of the housing market. These government programs are expiring and the layer of obscurity consequently produced by them will no longer taint accurate market valuation . The only thing that can heal the wounds inflicted on American property values (via Mortgage Backed Securities/CDOs) is time, and time alone. For better or worse, we enacted policies that allowed the market to cease free-fall and, thus, stabilize. The time has now come to accept the impending thorn of a transactional technique known, euphemistically as, the "short sale". This is the most feared word in the vocabulary of a Wall Street banker or investor in MBSs/CDOs, as it is the short sale that will negate profits at earnings calls through 2011 and the coming few years and devalues the asset. The short sale process leverages loan liabilities against each other to receive a grant of "forced forgiveness" on a percentage of that (or those) loan(s). As of quarter 3 in 2010, almost a third of all residential transactions were short sales. Some sources predict this trend to accelerate to 60-70% over the next 12 to 18 months, based on the fact that . This means that the majority of real estate deals done, in a residential capacity, will be short sales.
The road to recovery is not a road without struggle. The folks who refinanced every 3 years there for a while, in order to access their "home's liquidity" have learned this tough lesson the most. Whether we like to admit it or not, America put itself in this financial predicament and that effect has resonated throughout the networked global economy. The time is now, from an investment standpoint, to utilize the short sale to your advantage. Soon, the business arrangement with such a negative connotation, will receive a fresh coat of paint as the new "normal". Real estate no longer has to be overlooked, as if it's day as a formidable investment, has come and gone. A true market correction is not only an accurate glimpse of real value, it is a time that allows one to acquire property at a discount. With opportunity under so many rocks, a savvy investor need not leave any unturned. Pursuing a short sale could spawn your next deal and give you experience that you will use for several years to come. Banks beware! Offers you refuse today WILL be accepted sooner than later and will require everyone down the line to flex. And though a temporary sting to ROI on the annual balance sheet exists for these financial institutions, they can be at peace knowing that they are rid of a bad asset. And a short sale will assist the defaulting home owner, who otherwise, may face bankruptcy by relieving them of a bad asset. Unfortunately this all takes time, and time is the only way to revert to what we once thought was a flourishing housing market. Above all, a house is more than an asset backing a security. It is a real person's home and that is their life. Regardless of how we got here and thinking past how to pass the blame for our predicament, denial of value purchases,such as short sales, by the big banks are going to decline in direct correspondence with the rise in foreclosures. Thanks for listening...
Whether deserved as a consequence of their own actions or brought on by misleading sales tactics of an over-ambitious agent, the number of individuals who possess properties that are classified as "under water" (aka the property value is less than the current value of the mortgage) or, perhaps, subject to the premium spike of the adjustable-rate mortgage, are increasing as the months progress. But are we not emerging from economic instability? Has your 401k not returned a well-missed 30% in the past 4 quarters? And though jobs are slow growing, the massive wave of lay-offs have generally subsided, correct? Yes, all of those things are completely true. But please don't think that housing has stabilized. Thankfully but perhaps arguably, President Obama instituted federal policy (i.e. first time home buyers credit, temporarily freezing foreclosures, etc.) that gave a crutch to an injured sector of the economy, while giving hope to those failing to see the bottom. In reality, we have yet to see the true bottom of the housing market. These government programs are expiring and the layer of obscurity consequently produced by them will no longer taint accurate market valuation . The only thing that can heal the wounds inflicted on American property values (via Mortgage Backed Securities/CDOs) is time, and time alone. For better or worse, we enacted policies that allowed the market to cease free-fall and, thus, stabilize. The time has now come to accept the impending thorn of a transactional technique known, euphemistically as, the "short sale". This is the most feared word in the vocabulary of a Wall Street banker or investor in MBSs/CDOs, as it is the short sale that will negate profits at earnings calls through 2011 and the coming few years and devalues the asset. The short sale process leverages loan liabilities against each other to receive a grant of "forced forgiveness" on a percentage of that (or those) loan(s). As of quarter 3 in 2010, almost a third of all residential transactions were short sales. Some sources predict this trend to accelerate to 60-70% over the next 12 to 18 months, based on the fact that . This means that the majority of real estate deals done, in a residential capacity, will be short sales.
The road to recovery is not a road without struggle. The folks who refinanced every 3 years there for a while, in order to access their "home's liquidity" have learned this tough lesson the most. Whether we like to admit it or not, America put itself in this financial predicament and that effect has resonated throughout the networked global economy. The time is now, from an investment standpoint, to utilize the short sale to your advantage. Soon, the business arrangement with such a negative connotation, will receive a fresh coat of paint as the new "normal". Real estate no longer has to be overlooked, as if it's day as a formidable investment, has come and gone. A true market correction is not only an accurate glimpse of real value, it is a time that allows one to acquire property at a discount. With opportunity under so many rocks, a savvy investor need not leave any unturned. Pursuing a short sale could spawn your next deal and give you experience that you will use for several years to come. Banks beware! Offers you refuse today WILL be accepted sooner than later and will require everyone down the line to flex. And though a temporary sting to ROI on the annual balance sheet exists for these financial institutions, they can be at peace knowing that they are rid of a bad asset. And a short sale will assist the defaulting home owner, who otherwise, may face bankruptcy by relieving them of a bad asset. Unfortunately this all takes time, and time is the only way to revert to what we once thought was a flourishing housing market. Above all, a house is more than an asset backing a security. It is a real person's home and that is their life. Regardless of how we got here and thinking past how to pass the blame for our predicament, denial of value purchases,such as short sales, by the big banks are going to decline in direct correspondence with the rise in foreclosures. Thanks for listening...
Monday, January 24, 2011
The number 168
Welcome. I am pleased to write my first public blog and share my perspective with the world. Today, I'd like to highlight an interesting management tactic that I discovered when researching stocks. My friend, Beau, works with a large commercial roofing company owned my the publicly traded conglomerate, RPM International, Inc. As I reviewed their website, I noticed a certain section of the site dedicated to the number 168. What does 168 mean? RPM uses the number 168 as a fundamental of productivity. There are a maximum of 168 hours in a week that work can get done; 168 hours for you, as a manager, and your employees to accomplish your goal(s) and complete tasks. RPM founder, Frank C. Sullivan, believes in this number so much, he has adorned his license plate with the powerful 3 digits.
At Google, Inc., arguably the most successful company in the history of commerce, management goes to great expense to promote productivity. As an employee of Google, you are offered amenities that simplify your life and keep you focused on the main goal: advancing the company and fulfilling your job requirements, whatever they may be. The company offers free laundry service, complimentary fine cuisine at lunch, and transportation to aid your commute, to specify a few of these amenities. Why? Google has gone to great lengths to hire the best and brightest minds and they do not need this talent distracted by menial tasks and obligations. If they take these variables away, it leaves their employees with more time to focus on work and stay fresh and creative.
As a business, your employees are one of the most valuable assets you possess. They are a VERY powerful force and this can be what makes your business or becomes its downfall. Going the distance and beyond for those who operate within your business is vital to the success of your enterprise. Employees will respond to how they are compensated (and if you think I am just referring to financial compensation, go to the top and start over) and they use this to gauge your appreciation for their efforts. So if you have inferiors, ensure that they are being paid what they are worth. And it never hurts to remind someone how appreciative you are of their good performance. After all, without these people, your business would be non-existent! This is the key to extracting every ounce of productivity out of that 168 hours a week. Thanks for listening...
At Google, Inc., arguably the most successful company in the history of commerce, management goes to great expense to promote productivity. As an employee of Google, you are offered amenities that simplify your life and keep you focused on the main goal: advancing the company and fulfilling your job requirements, whatever they may be. The company offers free laundry service, complimentary fine cuisine at lunch, and transportation to aid your commute, to specify a few of these amenities. Why? Google has gone to great lengths to hire the best and brightest minds and they do not need this talent distracted by menial tasks and obligations. If they take these variables away, it leaves their employees with more time to focus on work and stay fresh and creative.
As a business, your employees are one of the most valuable assets you possess. They are a VERY powerful force and this can be what makes your business or becomes its downfall. Going the distance and beyond for those who operate within your business is vital to the success of your enterprise. Employees will respond to how they are compensated (and if you think I am just referring to financial compensation, go to the top and start over) and they use this to gauge your appreciation for their efforts. So if you have inferiors, ensure that they are being paid what they are worth. And it never hurts to remind someone how appreciative you are of their good performance. After all, without these people, your business would be non-existent! This is the key to extracting every ounce of productivity out of that 168 hours a week. Thanks for listening...
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