Posts about Creativity

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Pull Consulting: Immediate Management Consulting As You Need It

I think the potential for consulting as you need it is great. I actually was looking into creating an application to support the ability to provide this service with someone else; but we just had too many other things going on. I have now made myself available for consulting you pull as you need it through MinuteBox. You can get consulting when you need it for as little time as you need.

So if you are trying to apply the ideas I discuss on this blog and run into issues you would like to get some help with connect with me and you can get some immediate coaching on whatever you are struggling with. I am offering a special rate of $1.99 a minute, for now. The graphic on the right of this post (any post on this blog, actually) will show if I am available right now (as does johnhunter.com). If so, you can connect and get started. If not, you can leave a message and we can arrange a time.

I am featured on MinuteBox with this cool graphic, isn’t it nice :-)

home page of MInute Box with John Hunter graphic

John Hunter feature on Minute Box homepage

One advantage of this model is that those of you following this blog have a good idea of what topics you would like to delve into more deeply with me. If you have any questions on a particular topic you would like answered today or arranging coaching on specific topics over a period of time or help planning a project or someone to bounce your ideas off give this consulting as you need it model a try.

For those of you management consultants reading this blog (I know there are many) you can create your own Minute Box account easily and provide this service also. And even if you are not a consultant if you have advice worth sharing (and I know there are many of you also) you can also set up an account.

Related: John Hunter’s professional life timelineJohn Hunter onlineJohn Hunter LinkedIn profileTop Leadership blogsTop Management and Leadership blogs – Top Management blog

Be Thankful for Customer That Are Complaining, They Haven’t Given Up All Hope

I ran across this message and liked it (by wuqi256):

My time spent in a fast food chain (factory worker on weekends and security guard at night, yes really thanks to them, i have great jobs like that) when i was young trying to feed the family and study at the same time was quite useful.

They taught me that “Customers who complain are the best customers, it shows that they have still residual faith and goodwill in the organisation hence we should sift out those frivolous complains from those genuine ones that need our urgent attention” These are people who we can and should do a lot for as a complaining customer still has a very high chance of becoming a “returning” customer.

The customers that we fear for the most are those that either have voiced out or not heard or those who have given up and moved on to another organisation. Those we can no longer do much for as they no longer give us a chance. Discontentment is one thing but find the root cause, remove the straw from the cauldron and the water will stop boiling.

I know I often don’t bother voicing my concerns when I have given up all hope the organization has any interest in customer service. Sadly this is a fairly common situation.

It isn’t easy to do, organizations that are customer focused need but taking advantage of those customers helping you by expressing the frustration (that many of your customers experience, but don’t express). To do so organizations need to develop a culture where everyone is encouraged to improve your processes. The tricky part is not claiming that is what you want, but actually creating and maintaining the systems that bring that about.

Related: The Problem is Likely Not the Person Pointing Out The ProblemCustomer Service is ImportantCustomers Get Dissed and Tell

You’ve Got to Find What You Love

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.

- Steve Jobs



Watch this great commencement speech by Steve Jobs at Stanford in 2005.

We lost a great person today, when Steve Jobs died at the age of 56. His words are just as important today: you have got to find what you love to do. Keep looking until you find it. It won’t necessarily be easy to do. But life is too short to waste merely getting by.

My father found what he loved and pursued that throughout his life. He also died young. They both died young, but they both had great lives because they took charge to make the most of their lives. By doing what they loved they made the world a better place for many others, and themselves. Take that message to heart and make your life the best it can be.

Related: Quotes from Steve JobsPeter ScholtesPositivity and Joy in WorkBuild an Environment Where Intrinsic Motivation FlourishesRemembering Bill Hunter

Visual Management with Brown M&Ms

When you hear about rock musicians having a clause in their contract that they must have a bowl of M&Ms in their dressing room with all the brown M&Ms removed you could be excused for thinking: what will these crazy celebrities do next. Well it might just be those crazy celebrities are using visual management (granted I think there could be better methods [a bit more mistake proofing where the real problems would be manifest] but it is an interesting idea). Basically if they didn’t have the bowl of M&Ms, or if the brown M&Ms were not removed, they could distrust the thoroughness of the contractors. And they would check to see what other, actually important, contractual requirements were not followed.

Righting The Wrongs: Van Halen and M&Ms

The staff at venues in large cities were used to technically-complex shows like Van Halen’s. The band played in venues like New York’s Madison Square Garden or Atlanta’s The Omni without incident. But the band kept noticing errors (sometimes significant errors) in the stage setup in smaller cities. The band needed a way to know that their contract had been read fully. And this is where the “no brown M&Ms” came in. The band put a clause smack dab in the middle of the technical jargon of other riders: “Article 126: There will be no brown M&M’s in the backstage area, upon pain of forfeiture of the show, with full compensation”. That way, the band could simply enter the arena and look for a bowl of M&Ms in the backstage area. No brown M&Ms? Someone read the contract fully, so there were probably no major mistakes with the equipment. A bowl of M&Ms with the brown candies? No bowl of M&Ms at all? Stop everyone and check every single thing, because someone didn’t bother to read the contract. Roth himself said:

“So, when I would walk backstage, if I saw a brown M&M in that bowl . . . well, line-check the entire production. Guaranteed you’re going to arrive at a technical error. They didn’t read the contract. Guaranteed you’d run into a problem. Sometimes it would threaten to just destroy the whole show. Something like, literally, life-threatening.”

Related: The Importance of Making Problems VisibleVisual Work InstructionsGood Process Improvement PracticesGreat Visual Instruction Example

Sometimes Micro-managing Works

Sometimes micro-managing works. That doesn’t mean it is a good strategy to replicate. If you benchmark Apple you might decide that you should have a tyrannical obsessive involved CEO who is directly involved in every detail of products and services. After all Apple is now the second most valuable company in the world with a market capitalization of $324 billion (Exxon Mobil is the top at $433 billion) and a huge part of that is Steve Jobs.

Nice quote from How to beat Apple

Apple products & services that Apple does well are the ones that Steve Jobs uses

An interesting point, and really it doesn’t matter if it is completely true it illustrates a point that Steve Jobs is the rare leader that helps by being completely involved in nearly every detail. And at the same time he provides strategic leadership rivaled by very few others. But if you try to benchmark this (simplistically – as most benchmarking is done) you will fail. This works with Steve Jobs and maybe a handful of other people alive today. But with most leaders and organizations it would fail completely.

On another point Jason Kottke makes, I would normally suggest the opposite approach:

Openness and secrecy. Competitors should take a page from Apple’s playbook here and be open about stuff that will give you a competitive advantage and shut the hell up about everything else. Open is not always better.

I think you may well be better off doing the opposite and countering Apple’s secrecy with openness. It would depend on your organization, but, I think you might be better off trying to exploit Apple’s weakness instead of trying to do what they do well. Now things are never this simple but on a cursory level I think that is where I would look.

Google now has a market cap of $171 billion, Apple is almost double that – just 3 years ago Apple first exceeded Google’s value.

Related: Leadership is the act of making others effective in achieving an aimThe CEO is Only One PersonJeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution CenterRespect for PeopleDee Hock on Hiring

Toyota Kata Song – The Times They Are Changing

Very well done song, Toyota Kata – Managing by Means, by Doug Hendren – to the music of “The Times They are A-changing” by Bob Dylan. Doug sounds impressively similar to Dylan and the words are actually wonderful.

Managing by results, it don’t work anymore. Don’t stand in your office, go to the shop floor

to really improve you must iterate, see our problems as treasures before its too late, and eliminate waste, whether little or great. Take baby steps up to your dreams. And gradually reach a more flexible state if we want to manage by means.

Via: Lean Blog

Related: Toyota Kata (book)Learn Lean by Doing LeanThey Will Know We are Christians By Our LoveIf Your Staff Doesn’t Bring You Problems That is a Bad Sign

Innovation in Thinking and the Web

Investing time and effort to attract “the right kind” of contributors to a news site

He thought we needed to make the same shift with our users – instead of seeing having to engage with them digitally as a time-consuming and resource eating problem, we should be seeing our audience as an asset to the brand. Any online organisation that doesn’t include readers in the production chain is inherently inefficient.

I agree. And I think this is a good example of an organization needing to adapt to the changing environment. I thought about what I would do if I ran a news site and how I would try to take advantage of the possibilities to increase engagement using internet technology.

I do think if I was trying to increase engagement I would try to figure out how to highlight thoughtful commenters. I would probably try to look into something like the commenting system on Reddit (with Karma) and also the ability to follow commenters (like you can follow article contributers on Seeking Alpha). I would look at giving value back to good comments (maybe something like commentluv). I would definitely have a pages where you could view more comments by a commenter. I would try to set up categories and then list top commenters on local politics, local sports, health care… I would display in the order of popular comments (like Reddit) not just list in order made. There are lots of ideas I don’t see used (but I haven’t really thought about it until 5 minutes ago – maybe these are already widespread, or maybe I haven’t really though out why they wouldn’t work well).

I just remember a post here previously about a newspaper in Kansas that was taking some sensible actions, and seemed to get the value chain they were serving. I would also take a look at them if I were really going to do this for a news organization.

This blog has a failure miserable, engagement with readers. Hopefully I can work on improving that in the next year. My last post, Customer Focus and Internet Travel Search (is the effort of one of the 4 founders of Reddit).

Related: Joel Spolsky Webcast on Creating Social Web ResourcesJohn Hunter online (Reddit comments…)Delighting CustomersPrice Discrimination in the Internet Age

Customer Focus and Internet Travel Search

The internet should make finding airline flight information easy. Instead it is a huge pain. Hipmunk has taken on the challenge of doing this well, and I think they have done a great job. This video provides an excellent view of both web usability and customer focus. This is a great example of focusing on providing customer value and using technology to make things easy – which is done far to little at most companies.

Related: Innovation Example (Farecast – which seems to have been bought by Microsoft and broken)Making Life Difficult for CustomersConfusing Customer FocusJoel Spolsky Webcast on Creating Social Web ResourcesCEO Flight Attendant

Learn by Seeking Knowledge – Not Just from Mistakes

Being open to new ideas and new knowledge is what is needed to learn. Experimenting, seeking out new knowledge is even better.

You can be successful and see an even better way to do things and learn from it. This seems the best way to learn to me – not to just learn from mistakes. Of course this means your goal has to be improvement not just avoiding more mistakes than before.

Your actions are based on theories (often unconsciously): and learning involves improving those theories. Learning requires updating faulty ideas (or learning new ideas – in which case ignorance rather than a faulty theory may have lead to the mistake). Encouraging people to learn from mistakes is useful when it is about freeing them to make errors and learn from them. But you should be learning all the time – not just when you make mistakes.

You can be also be wrong and not learn (lots of people seem to do this). This is by far the biggest state I see. It isn’t an absence of people making mistakes (including carrying out processes based on faulty theories) that is slowing learning. People are very reluctant to make errors of commission (and errors of commission due to a change is avoided even more). This reluctance obviously makes learning (and improvement) more difficult. And the reluctance is often enhanced by fear created by the management system.

It is best to be open and seek out new knowledge and learn that way as much as possible. Now, you should also not be scared to be wrong. Taking the right risks is important to improving – encouraging creativity and innovation and risk taking is wise.

Experiment and be open to learn from what could be better and improve (PDSA is a great way to try things and evaluate how they work). And the idea is not to be so conservative that every turn of the PDSA cycle has no failures. In order to get significant successes it is likely you will try things that don’t always work.

The desire to improve understanding (and the desire to improve results provides focus to the learning) is what is valuable in learning – not being wrong. Creating a culture where being wrong needs to be avoided harms learning because people avoid risk and seek to distance themselves from failure instead of experimenting and digging into the details when something goes wrong. Instead of learning from mistakes people try to stay as far away from them and hide them from others. That is not helpful. But what is needed is more desire to continually learn – learning from mistakes is wise but hardly the only way to learn.

Related: The Illusion of Knowledgeconfirmation biasManagement is Prediction

Supporting Free and Open Source Software

Gabriel Weinberg (founder of the great Duck Duck Go search engine) proposed starting a FOSS Tithing movement. Many benefit greatly from free and open source software like: Ruby on Rails, Linux (my favorite version Ubuntu), WordPress, Apache, Ruby, Perl, Nginx, Phusion Passenger. As well as other related efforts Electronic Frontier Foundation, creative commons, PLoS.

If we can get people to contribute to this idea that would be great. I have had curiouscat.com give some money to continue the development of the open source software we use, and the related efforts.

The contribution of time is often even more important (and for some people, easier). Those individuals and organizations that are giving back in this way are key to the community benefits. Open source software is a great example of systems thinking and taking a broader view of how to succeed. And for managers interested just in their organization allowing programmers to contribute to open source projects can be very beneficial building their intrinsic motivation by contributing to something they care about them and having them learn through such participation.

My goal is to give back more. But so far that goal has been held back by my failure to better achieve the goal to increase revenue at curiouscat.com. I am going to make a new effort to have curiouscat.com give back more going forward.

I get so much from great open source software like Ruby, Rails, Ubuntu, Apache, MySQL along with lots of less well known software, that it is important to me to contribute to sustaining the environment that will continue to produce such great software.

Related: Open Source Management TermsWhat Managers can Learn From Open Source Project ManagementOpen Source: The Scientific Model Applied to ProgrammingGoogle Summer of Code

Jason Fried: Why work doesn’t happen at work

In this TED talk, Jason Fried, founder of 37 signals, discusses how people get work done. When asked where do you go when you really need to get something done, almost no-one says: the office (unless it is early in the morning or late at night)? This is especially for creative people and knowledge workers. They need long stretches of uninterrupted time to concentrate. “The real problems in the office are the managers and the meetings.”

The main theme is that interruptions can severely damage performance, especially for what Peter Drucker called knowledge workers.

He offers 3 suggestions to make the office a place people can get work done. No talk Thursdays. And if that is too much how starting with 1/2 a day Thursday once a month. Second, replace active distraction (meeting, going and talking to a person) with passive distraction (email and IM) that a person can turn off when they need to focus. I have found this very useful myself. And third, cancel meetings. He closes with: I hope I have given managers reasons “to think about about laying off a little bit and giving people some time to get work done.”

Related: Understanding How to Manage GeeksBetter MeetingsWorkers Allowed Recreational Use of the Internet are More ProductiveManagement By IT Crowd Bosses

Airport Security with Lean Management Principles

The ‘Israelification’ of airports: High security, little bother

We [Israel] said, ‘We’re not going to do this. You’re going to find a way that will take care of security without touching the efficiency of the airport.”

“The whole time, they are looking into your eyes — which is very embarrassing. But this is one of the ways they figure out if you are suspicious or not. It takes 20, 25 seconds,” said Sela. Lines are staggered. People are not allowed to bunch up into inviting targets for a bomber who has gotten this far.

Lean thinking: customer focus, value stream (don’t take actions that destroy the value stream to supposedly meet some other goal), respect for people [this is a much deeper concept than treat employees with respect], evidence based decision making (do what works – “look into your eyes”), invest in your people (Israel’s solution requires people that are good at their job and committed to doing a good job – frankly it requires engaged managers which is another thing missing from our system).

The USA solution if something suspicious is found in bag screening? Evacuate the entire airport terminal. Very poor design (it is hard to over-emphasis how poor this is). It will take time to design fixes into physical space, as it always does in lean thinking. It has been nearly 10 years. Where is the progress?

The Colbert Report Mon – Thurs 11:30pm / 10:30c
Tip/Wag – TSA, Bert & Dogs<a>
www.colbertnation.com
Colbert Report Full Episodes 2010 Election March to Keep Fear Alive
A screener at Ben-Gurion has a pair of better options. First, the screening area is surrounded by contoured, blast-proof glass that can contain the detonation of up to 100 kilos of plastic explosive. Only the few dozen people within the screening area need be removed, and only to a point a few metres away.

Second, all the screening areas contain ‘bomb boxes’. If a screener spots a suspect bag, he/she is trained to pick it up and place it in the box, which is blast proof. A bomb squad arrives shortly and wheels the box away for further investigation.

This is a very small simple example of how we can simply stop a problem that would cripple one of your airports,” Sela said.

Lean thinking: design the workspace to the task at hand. Obviously done in one place and not the other. Also it shows the thought behind designing solutions that do not destroy the value stream unlike the approach taken in the USA. And the better solution puts a design in place that gives primacy to safety: the supposed reason for all the effort.
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Why Don’t Football Players Just Thrown the Ball Out of Bounds to Stop the Clock

I have never understood why players don’t lateral the ball out of bounds to stop the clock in pro or college football in the USA. If time is running out and the player is tackled in bounds the clock keeps running and time can expire. You can stop the clock by running out of bounds. Also if the ball goes out of bounds the clock is stopped. I figured maybe there was some rule against just throwing the ball out of bounds to stop the clock. I never hear announcers explain that they can’t just throw the ball out of bounds due to a rule, though.

John Clay, Wisconsin Badgers

I decided to go the the source, on page 73 of the official NCAA football rules it says the clock stops: “With fewer than two minutes remaining in a half a Team A ball carrier, fumble or backward pass is ruled out of bounds.”

However, on page 103 (of 272) it states: “A ball carrier may hand or pass the ball backward at any time, except to throw the ball intentionally out of bounds to conserve time. [The penalty for breaking the rule is] five yards from the spot of the foul; also loss of down.” The clock is started when the ball is ready for play (rule 3-4-3 says the clock restarts on the ready to play signal for “unfair clock tactics” penalties).

From the rule book appendix: “A ball carrier, late in the second period, throws a backward pass out of bounds from behind or beyond the neutral zone to conserve time. RULING: Penalty – Five yards from the spot of the foul and loss of down. The clock starts on the ready-for-play signal.” By the way an illegal forward pass has the same penalty.

Still to me this leaves a very good reason to lateral the ball out of bounds. It should certainly take less time to line up and ground the ball after the ball is marked ready for play than it would if the clock is never stopped. Often you could still have time to run a play or just ground the ball and stop the clock.

The NFL does use a 10-second runoff rule, and with the referee winding the clock on the ready for play, which would likely make an deliberate attempt a bad idea. But as far as I can tell college rules don’t have that time penalty. It seems to me, if you want to have a rule against stopping the clock that way, it probably is wise to have the 10 second penalty.

Even if for some reason taking that penalty doesn’t work if you are in the middle of the filed you could thrown it to someone near the sidelines to let them get out of bounds. Also if you at least make that attempt and then the ball goes out of bounds (just form your lateral) it seems to me you at least have the hope the referees won’t call the penalty that requires your intent to thrown it out of bounds to stop the clock, in order for it to be a penalty.

Related: Randomization in SportsNHL Experiments with the Rules of HockeyPhysicist Swimming Revolution
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Managing Our Way to Economic Success

From Managing Our Way to Economic Success, Two Untapped Resources by William G. Hunter, my father. Written in 1986, but still plenty relevant. We have made some good progress, but there is much more to do: we have barely started adopting these ideas systemically.

there are two enormously valuable untapped resources in many companies: potential information and employee creativity. The two are connected. One of the best ways to generate potential information to turn it into kinetic information that can produce tangible results is to train all employees in some of the simple, effective ways to do this. Rely on their desire to do a good job, to contribute, to be recognized, to be a real part of the organization. They want to be treated like responsible human beings, not like unthinking automatons.

W. Edwards Deming has illustrated one of the troubles with U.S. industry in terms of making toast. He says, “Let’s play American industry. I’ll burn. You scrape.” Use of statistical tools, however, allows you to reduce waste, scrap, rework, and machine downtime. It costs just as much to make defective products as it does to make good products. Eliminate defects and other things that cause inefficiencies, and you reduce costs, increase quality, and raise productivity. Note that quality and productivity are not trade-offs. They increase together.

Potential information surrounds all industrial processes. Statistical techniques, many of which are simple yet powerful, are tools that employees can use to tap and exploit this potential information so that increasingly higher levels of productivity, quality, and innovation can be attained. Engaging the brains as well as the brawn of employees in this way improves morale and participation…and profits.

What is called for is constant, never-ending improvement of all processes in the organization. What management needs, too, is constant, never-ending improvement of ideas.

Related: William Hunter, articles and booksInvest in New Management Methods Not a Failing CompanyThe Importance of Management ImprovementStatistics for Experimenters

Frugal Innovation

First break all the rules

The device is a masterpiece of simplification. The multiple buttons on conventional ECGs have been reduced to just four. The bulky printer has been replaced by one of those tiny gadgets used in portable ticket machines. The whole thing is small enough to fit into a small backpack and can run on batteries as well as on the mains. This miracle of compression sells for $800, instead of $2,000 for a conventional ECG

Frugal products need to be tough and easy to use. Nokia’s cheapest mobile handsets come equipped with flashlights (because of frequent power cuts), multiple phone books (because they often have several different users), rubberised key pads and menus in several different languages. Frugal does not mean second-rate.

The article goes on to talk about several methods for how to profit from reducing costs which seem misguided. Frugal innovation is about thinking about meeting the needs of huge numbers of customers that can’t afford conventional solutions. By talking a new look at the situation and attempting to find solutions with significant price constraints new markets can be opened. Often this requires thinking similar to disruptive innovation (products that serve a similar need but less completely than current options).

It also requires the engineering principles of appropriate technology. I highlight this thinking in my Curious Cat Engineering blog and find it very worthwhile. For organizations that have a true mission to serve some purpose using such thinking allows a greatly expanded potential market in which to make a difference in the world.

There is a great quote from Jeff Bezos that captures one reason why organizations so often fail to address frugal innovation: “There are two kinds of companies, those that work to try to charge more and those that work to charge less.” Many organizations are focused on trying to charge more, not less. Another problem is that decision makers often have no life experience with cheap solutions – this doesn’t prevent frugal innovation but it does make them less likely to see the need and to decide to solve those customer needs.

Related: Appropriate ManagementManaging InnovationProcess Improvement and Innovation

Interruptions Can Severely Damage Performance

Interruptions can severely degrade your performance. The type of work you are doing impacts the cost greatly. I have spent some of my time programming web applications. When I am doing that interruptions are huge drain on my performance (for me the costs of interruptions while programming are far higher than any other type of work I have done – many times higher). If the interruption disrupts my flow (an interruption needn’t necessarily disrupt it I found, instant messages may not, while speaking to someone else almost surely would – it is a factor of how much of your brain much shift focus I imagine) it can take a huge amount of time to get back into a high performing state. Other work I do can be interrupted with much less impact. I am easily able to slip back into what I was doing.

For me the main cost of interruptions is the time it takes to get back to where I was before the interruption. And the cost is related to how much focus is needed to address what you are working on. Most programming takes a huge amount of focus.

Another big cost of interruptions is the increased risk of mistakes. When people are distracted and then have to go back to a task, and then are distracted, and then go back and… it is more likely they will miss a step or miss noticing some issue than if they can work without distraction. One tool to help cope for distractions that can’t be designed out are checklists.

Paul Graham addressed the importance of managing the system to provide uninterrupted time very well in, Maker’s Schedule, Manager’s Schedule

One reason programmers dislike meetings so much is that they’re on a different type of schedule from other people. Meetings cost them more

Most powerful people are on the manager’s schedule. It’s the schedule of command. But there’s another way of using time that’s common among people who make things, like programmers and writers. They generally prefer to use time in units of half a day at least. You can’t write or program well in units of an hour. That’s barely enough time to get started.

Paul Graham’s article also shows why managers so often fail to adequately address this issue. Manager, by and large, work in an environment where interruptions are the work. I know, much of my time as a program manager is driven by interruptions and is doable even with many interruption every day.

When managing you need to understand how big a cost interruptions have and design systems appropriate to optimize system performance for all parts of the system. The design of the system needs to take into account the costs and benefits of interruptions for those people working on various processes in the system.

Related: Understanding How to Manage GeeksExplaining Managers to ProgrammersWhat Motivates Programmers?Joy in Work – Software DevelopmentProgrammers CartoonChecklists in Software Development

Kiva – Giving Entrepreneurs an Opportunity to Succeed

photo of a Kiva entrepreneur

Tony, a Kiva entrepreneur in Pennsylvania, USA looking to manufacturing specialty cars.

I really like Kiva. Kiva lets you lend small amounts of money to entrepreneurs around the world. My latest loan is to a manufacturing entrepreneur in the USA.

When Tony’s 6’0 6″ body could not fit in the traditional supercars, he built his own in 1990. Tony says, “If one door closes I just look for another opening; I don’t give up.” With much patience and hard work he continues to expand his business and hopes to make it a full-time job. With his ACCION USA microloan he has hired two designers to work with him part-time and has purchased a laptop.

I must admit I wouldn’t take this as an investment. It seems a very risky and doesn’t seem that likely to pan out, to me. But I see my loans through Kiva as a way to give people a chance to pursue their dreams. This loans is probably the one I find less compelling from a business point of view (to me), but I like to provide some loans in the USA so I decided to give Tony a chance.

I do try to select loans that look promising and seem to provide the entrepreneur an opportunity that will help them. By which I mean I love finding loans where, for example, they will buy equipment that will improve their productivity or take on new business. Very often loans are to buy raw materials or supplies, which is also fine but the potential gains are often less than something that improves the efficiency (it seems to me). Often this allows the entrepreneur to buy more and grow their business.

I have made nearly 200 loans now. The top country has been Togo (at 12%). I don’t target Togo but I do pay attention to the loan costs to the entrepreneurs (part of my assessment of the good business case for the loan) and some of the micro finance organizations offer good terms to entrepreneurs. Some of the microfinance organizations are more charitable (they may use donations to fund significant parts of the operating expenses, instead of profits from interest on the loans). Read more details on how Kiva works. It also used to be a bit difficult to find loans I really thought were great. It is getting easier to find more options so my guess is that the top few countries now will see declines in their percentages.

So far I have lent to 37 countries. Cambodia is 2nd at 7.7% of my loans, Viet Nam 3rd at 6.7%, Tanzania 4th at 5.1%, Nicaragua 6th at 5.1% along with Kenya, and Ghana and Boliva are 8th at 4.6%. The United States now makes up 2.6% and Mexico 1.5%. The sectors the loans are categorized in are: Services 25%, Food 18%, Manufacturing 17%, Retail 14%, Agriculture 12% and various others. Though the sector categorizations are pretty weak in my opinion (they seem to be fairly inaccurate – so it gives you an idea but it isn’t exact).

The default rate on my loan portfolio is 2.1% (3 defaults). One was in Kenya where $71.50 out of $75 was paid back and then huge civil unrest took place and it defaulted. The other 2 are from the same microfinance bank in Ecuador that was closed down due to mismanagement. In that instance I lost $87.50 out of $100 lent. 94 loans have been fully paid back and 94 are being paid back now.

I would love it if more Curious Cat readers joined Kiva and helped other entrepreneurs. If you do let me know your Kiva page and I will add you to the Curious Cat Kivans page. Also join the Curious Cats Kiva Lending Team.

Related: 100th Entrepreneur LoanThanksgiving: Micro-financing EntrepreneursUsing Capitalism to Make the World BetterKiva Opens to USA Entrepreneur LoansMicroFinance Currency Risk

Improving Education with Deming’s Ideas

This interview (link broken, so removed) with David Langford discusses how to improve education using ideas from Deming. Along with Alfie Kohn, David have long been the learning and management experts I find most valuable.

I have long remembered is his idea that he was the CEO of his classroom. On hearing Deming discuss how critical it was to have the CEO active in a management improvement effort to achieve success he tried to get those above him in the organization chart to change. Which didn’t work very well. Seeing that method was not successful he took a new look and decided to view the problem in a different way.

He looked for what he was in charge of and decided he could decide how to run his classroom. I think this is a very valuable idea for anyone looking to improve their organization. What is your sphere of control? Focus on how you can improve there. Don’t just try to change others. See how you can change and improve what you can.

The interview provides a good insight into the great ideas David has.

  • “Make changes that let all kids get good grades.”
  • That comes from the theory (incorrect theory) grades motivate students.
  • There is no level of education sub-quality that is acceptable. Success or need to work more, which category are you in. B, C, D does not make sense.
  • People keep trying things we have proven over and over again don’t work, like pay for performance schemes for individual teachers.

Anyone interested in improving education should listen to this interview and search out more ideas from David Langford and Alfie Kohn. I really like David’s capacity matrix.

Related: Orchestrating Learning With Quality by David P. Langford and Barbara A. Cleary – K-12 Educational ReformDeming on being Destroyed by Best Efforts

Mihaly Csikszentmihalyi: Creativity, Fulfillment and Flow

“After a certain basic point, which translates, more or less, to just a few thousand dollars above the minimum poverty level, increases in material well being don’t see to affect how happy people are.”

The speech includes, the first purpose of incorporation at Sony:

To establish a place of work where engineers can feel the joy of technological innovation, be aware of their mission to society, and work to their heart’s content.

Excellent books by Mihaly Csikszentmihalyi:
Flow: The Psychology of Optimal Experience by Mihaly Csikszentmihalyi, 1991. People enter a flow state when they are fully absorbed in activity during which they lose their sense of time and have feelings of great satisfaction.
Good Business: Leadership, Flow, and the Making of Meaning.
Creativity: Flow and the Psychology of Discovery and Invention by Mihaly Csikszentmihalyi, 1997. Drawing on hundreds of interviews with exceptional people, from biologists and physicists to politicians and business leaders to poets and artists, the author uses his famous “flow” theory to explain the creative process.

Related: Extrinsic Incentives Kill Creativityposts on psychology Interviews with InnovatorsInnovation StrategyThe Purpose of an OrganizationFlow

Observations of a New Googler

Some interesting thoughts from a new Google engineer, Things I’ve learned at Google so far

I would describe Google’s culture as “creative chaos”. There was some confusion about where I was supposed to be when I started. This resulted in the following phone call, “Hello?”, “Hello Ben, this is Conner (that’s my new manager), where are you?” “Mountain View.” “Why are you there?” “Because this is where the recruiter said to go.” “Good answer! Nice of them to tell me. Enjoy your week!” This caused me to ask an experienced Googler, “Is it always this chaotic?” The response I got was, “Yes! Isn’t it wonderful?” That response sums up a lot about Google’s culture. If you’re unable to enjoy that kind of environment, then Google isn’t the place for you.

Paul Buchheit was a software engineer at Google. He didn’t need permission to write something like gmail. Corporate culture says that if you need something like that, you just go ahead and do it. In fact this is enshrined as an official corporate policy – engineers get 20% of their time to do with pretty much as they please, and are judged in part on how they use that time. I found a speech claiming that over half of Google’s applications started as a 20% project. (I’m surprised that the figure is so low.) To get a sense of how much stuff people just do, visit Google Labs. No corporate decision. No central planning.

Sick day policy. Don’t show up when you’re sick and tell people why you’re not showing up. Note what’s missing. There is no limit to how much sick time you get if you need it.

I think he overestimates the lack of central planning, still it is another interesting view of Google.

Related: Eric Schmidt on Management at GoogleGoogle: Ten Golden RulesThe Myth of the Genius Programmer