Posts Tagged management style

Navigating New York’s Attitude toward Technologists

I just read Zed Shaw’s post where he announces that he found a job in San Francisco.  Congratulations to him.  In his post, I appreciated his concluding comparison of how companies in New York and San Fran perceive and approach technologists.  Zed says:

NYC prospects were looking for a badass/ninja/rockstar beta-male “techie” employee to make them rich creating lame applications for giant Finance/Fashion/Marketing companies.  SF prospects were looking for a partner to get rich with them creating great products for customers.

To a large extent, I agree.  New York is filled with companies that have non-technical core competencies.  These businesses treat technology as a necessary cost.  When they search for a rockstar ninja, their goal is to minimize cost.  The thinking is “that last tech we had was too slow and too sloppy, and his mistakes cost us money.  We need a superstar tech guy to come in here and do things right (not screw up).”

The dynamic is top-down.  The business wants a super star who will take orders and work efficiently.  On the whole, this makes perfect sense.  As Judge Smails says, “the world needs ditch diggers, too.”

This system fails for superstar techies like Zed Shaw.  This class of techies are often prima donna’s in the same vein as star wide receivers in the NFL.  Instead of taking orders, they want to provide advice.  Instead minimizing cost, they want to generate value.  Indeed, they want to be partners, not employees.  (Even if the company pays well, as many New York firms do).

San Francisco, on the other hand, is a town filled with ninjas looking to band together.  Each one is a Steve Jobs looking for a Steve Wozniak to join them in the garage.  This is a natural and attractive situation, as evidenced by Zed’s move from his beloved LES.

New Yorkers do have hope.  The key is to pursue and promote every opportunity to increase revenue instead of decreasing costs.  When you see this opportunities, you need to explicitly point them out.  Then, if you’re given the green light, work extra hard to execute.  If you score a couple wins, then you can take a partnership role (even in New York).

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Let Ichan Destroy Yahoo!

Two days ago Carl Icahn wrote a brilliantly pointed letter to Roy Bostock, Yahoo’s chairman of the board. The letter is a masterpiece in swashbuckling rhetoric. My favorite sentnece sentence was:

During the past week, a number of shareholders have asked me to lead a proxy fight to attempt to remove the current board and to establish a new board which would attempt to negotiate a successful merger with Microsoft, something that in my opinion the current board has completely botched.

I think Icahn is making the right move. Yahoo has been spinning its wheels for years now. Jerry Yang, Yahoo’s founder and CEO, is widely known to possess a quixotic fixation on his beloved company. He exudes a righteous attitude (Yahoo is too good for Microsoft), and he’s consistently failed to demonstrate business acumen (what has Yahoo done well lately).

Bostock’s reply certainly doesn’t provide any comfort. It’s a long winded effort to claim that really, they honestly did try to strike a fair deal with Microsoft. He assumes that Icahn and other disgruntled shareholders overlooked all the events that he enumerates.

Yesterday John Dvorak wrote an article that evaluates Icahn’s proposed slate of new board members. He concludes that Icahn would destroy Yahoo because the proposed members were corporate hawks instead of savvy technologists. First, board members cannot inject good technology into Yahoo. That is exactly their problem right now, with Yang at the helm. Second, I think Yahoo is destined to fail as a standalone company because its attitude troubles discourage the innovative atmosphere that it would need to turn around.

So let Icahn install its corporate raiders and chop up Yahoo or otherwise package it for sale. Yahoo certainly contains a lot of value, so why not capture it? If the new board succeeds, the shareholders will reap a nice premium, and Yahoo’s technical gemstones will live on under a new brand.

With all this said, I don’t necessarily think Microsoft would benefit from purchasing Yahoo.  But if Steve Balmer wants to buy Yahoo, then the Yahoo board should find the best way to strike a deal.

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WSJ: New Breed of Business Gurus Rises

Today’s Wall Street Journal has an article titled “New Breed of Business Gurus Rises.” The article discusses a “ranking of influential business thinkers” that “was compiled by Thomas H. Davenport” and “H. James Wilson.” The two researchers use a technique that merges Google search results, Lexis Nexis citations, and academic citations. The top five, from a pre-selected list of 110 people, are Gary Hamel, Thomas L. Friedman, Bill Gates, Malcolm Gladwell, and Howard Gardner.

I would like to know more about the methodology behind the ranking, but I’m skeptical about its quality. For example, Thomas Friedman writes a popular newspaper column that touches on many topics outside of management. I don’t see how a count of his Google hits has much bearing on his management ideas. The article says that the book “What’s the Big Idea?”, written by Davenport and Wilson, contains more information on the methodology, so perhaps the authors account for such issues.

Not to pick the article apart, but it uses this quote to emphasize how managers are tapping into new sources of ideas: “Susan Flygare, a sales-strategy executive at Blue Cross and Blue Shield of Minnesota who has attended speeches by a Harvard-educated stand-up comic, as well as by Messrs. Gladwell and Hamel.” Unless Mrs. Flygare is hinting she saw Conan O’Brien, the h-bomb seems irrelevant.

I am interested in the general topic of mining citations and internet references for influential people within a specific domain of expertise. It would be fun to create a website that returned an ordered list of gurus for any given domain or topic. Perhaps a site like that exists. If so, please point me to it.

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WSJ: David Einhorn

Yesterday I read a friendly feature article about David Einhorn in the WSJ. The article, titled “A New Face Of Hedge Funds Isn’t Shy”, runs alongside a color photo of Einhorn wearing a lucky sweatshirt while he stands among poker tables during a break at the 2006 WSOP. The authors touch upon statements that he’s made as an activist investor, some of his charitable actions, and his avant guard working style.

Einhorn has recently ruffled some feathers by criticizing regulatory organizations such as the SEC. He makes the point that regulators don’t have sufficient incentives to properly scrutinize corporations. For example, he’s quoted as saying “The SEC is run by a corporate advocate, not an investor advocate, so investors are getting a false sense of security.”

I learned a little (emphasize little) about corporate oversight when I prepared for the Series 7 and Series 63. My studies left me with the impression that regulations are largely motivated by periodic financial crises, when Congress is pushed to take legislative action by their screaming constituents. This methodology seems flawed and error-prone. We’re seeing it right now with calls to take action in this credit crisis. I’d like to learn more about the details of corporate oversight because it touches on the intersection of finance and politics.

I also liked the article’s description of Einhorn’s working style. It says that he takes afternoon naps and is usually home in time to have dinner with his family. I envy that working style because I think it engenders a healthy, relaxed style of thinking. I personally know that winning poker players bring that attitude to the table. My guess is that Einhorn’s working style has played an important role in his success on Wall Street and at the poker table.

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