When Wall Street Was Fun

As world financial markets toss and turn following the U.S. sub-prime mortgage meltdown, I can’t help but think the bogus products that led to this mess where the result of a toxic culture. From the retail point of view, I recently reacted to how far customer trust has declined.

Soldier on Wall Street

On a recent morning, in a meeting at a giant bank on Wall Street, I was killing time talking with an old timer and heard some of the employee side of the story. He waxed nostalgically about how fun Wall Street was in the 1960’s and 70’s. They worked hard, but it was fun. The transactions were simpler, the lines between right and wrong were more clear, at lunch they played football in front of the stock exchange, and bonuses would be paid in cash by the boss. Now the products are so complicated the banks don’t understand their own risk exposure, the workplace atmosphere is contentious, and Wall Street is barricaded and guarded by the military brandishing machine guns. Culture begets products, and the culture is sick.

Photo credit: Jennifer Szymaszek, AP

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Categorized as Culture

Fighting Spam and Apologies in Advance

An off-topic post…

Apparently I have a high enough Page Rank that spammers love my site. I actually have two different anti-comment-spam plug-ins running on my WordPress installation. But lately there are been hundreds of spam comments per day that the system can’t decide are spam or not, and so it offers them to me for moderation. I just don’t have time to sort through them all, so I simply delete them.

I haven’t heard any complaints, but if your comment falls into the pit of false positives, my apologies.

Update: I installed another WordPress plugin that asks you to answer a simple math question before posting, and this seems to be working perfectly so far.

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Categorized as Blogs

The Berlin C-School

The Berlin School of Creative Leadership sounds fascinating…

By bringing together top creative executives and international leadership experts, the Berlin School will pave the way for new standards in communication and leadership, fostering global discourse on creative leadership in entertainment, journalism, media, advertising and marketing.

At its heart is the Executive MBA in Creative Leadership, an 80-day part-time program comfortably spread over 18 months, taking place in Berlin with study trips to Chicago, New York and Tokyo.

Grant’s analysis is honest and insightful (as usual)…

The danger is that this will be another jolly club, where pals appoint pals, and the odor of self congratulation extinguishes the possibility of fresh thinking. Creatives may have the Canadian problem I was talking about this week: people who are brilliant as individuals and small groups working in agency circumstances find themselves diminished by still larger groups and the scale, to say nothing of the pretensions, of university life.

I guess the real challenge is how you get the academics and the creatives to play together This is not a famously productive relationship and it will take some tremendously good mediation to make these two parties mutually useful, let alone mutually inspirational.

What’s Your Favorite Book on Building Digital Products/Services?

The responses to my question about your favorite books on innovation were so interesting and useful I can’t help but ask another:

Let’s say you’re a manager charged with developing a software-driven product or service like a website or a mobile service. You already have staff to handle the interface design, programming, and marketing. But you need to figure out a process for creating the product, a process with activities like generating ideas, creating conceptual designs, analyzing business factors, working with partners, etc.

Do you have a favorite book on this topic? And by the way, what term do you use to refer to this?

Again, I’ll start with mine…

Two Tips for Keynoters

A friend about to give her first keynote speech asked my advice on how to approach it, then suggested I post the advice for others to see. So here it is:

  1. Keynote content has a large burden. Ideally it provides context — or at least controversy — for the rest of the event. It should have big ideas of where we’ve been or where we’re going, but also be grounded in the practical in a way that makes it relevant to attendees. It isn’t very difficult to strike this balance, but probably different topically from what we do day-to-day, so give yourself extra time for research and imagining.
  2. The keynote speaker also becomes an implicit ambassador of the event. While some may board their private jet immediately following the talk, I found that I felt I should continue the keynoter persona throughout the event, answering questions and socializing with everyone, including the organizers.
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Categorized as Teaching

Banking joins bestiality and gambling on the banned in Second Life list

From TechCrunch:

Linden Lab has announced that virtual banking within Second Life is to be banned effective January 22 after receiving multiple complaints by Second Life residents scammed by bank operators.

I have a very early memory of pulling up to the drive-through window of our local bank in our station wagon, my mother depositing a little money I earned, and me excited to check my savings account book to see where the computer imprinted my new balance. Compare this fond memory to the recent mortgage loan crisis in the U.S. and I’d say trust in the banking industry has come a long way. Hopefully someone will see this as a business opportunity and focus on service and ethics.

Paul Saffo in SF, Friday, Jan 11

If I was in San Francisco, I’d go hear Paul Saffo…

“Effective forecasting is not merely possible, but remarkably easy,” he says. “All it takes is a simple shift in perspective and a few common-sense heuristics.”

Saffo draws on his study of the history of technology to give unusual perspective on the accelerating wavefront of current technology and what it means and will mean. As a Long Now board member, he slots forecasting neatly into long-term thinking.

“Embracing Uncertainty: the Secret to Effective Forecasting,” Paul Saffo, Cowell Theater, Fort Mason, San Francisco, 7pm, Friday, January 11. The lecture starts promptly at 7:30pm. Admission is free (a $10 donation is always welcome, not required).

But I’m in New York, so I’ll wait for the podcast.

Update: Here’s Stewart Brand’s summary:

Reflecting on his 25 years as a forecaster, Paul Saffo pointed out that a forecaster’s job is not to predict outcomes, but to map the “cone of uncertainty” on a subject. Where are the edges of what might happen? (Uncertainty is cone-shaped because it expands as you project further into the future— next decade has more surprises in store than next week.)

Rule: Wild cards sensitize us to surprise, and they push the edges of the cone out further. You can call weird imaginings a wild card and not be ridiculed. Science fiction is brilliant at this, and often predictive, because it plants idea bombs in teenagers which they make real 15 years later.

Rule: Change is never linear. Our expectations are linear, but new technologies come in “S” curves, so we routinely overestimate short-term change and underestimate long-term change. “Never mistake a clear view for a short distance.”

“Inflection points are tiptoeing past us all the time.” He saw one at the DARPA Grand Challenge race for robot cars in the Mojave Desert in 2004 and 2005. In 2004 no cars finished the race, and only four got off the starting line. In 2005, all 23 cars started and five finished.

Rule: Look for indicators- things that don’t fit. At the same time the robot cars were triumphing in the desert, 108 human-driven cars piled into one another in the fog on a nearby freeway. A survey of owners of Roomba robot vacuum cleaners showed that 2/3 of owners give the machine a personal name, and 1/3 take it with them on vacations.

Rule: Look back twice as far. Every decade lately there’s a new technology that sets the landscape. In the 1980s, microprocessors made a processing decade that culminated in personal computers. In the 1990s it was the laser that made for communication bandwidth and an access decade culminating in the World Wide Web. In the 2000s cheap sensors are making an interaction decade culminating in a robot takeoff. The Web will soon be made largely of machines communicating with each other.

Rule: Cherish failure. Preferably other people’s. We fail our way into the future. Silicon Valley is brilliant at this. Since new technologies take 20 years to have an overnight success, for an easy win look for a field that has been failing for 20 years and build on that.

Rule: Be indifferent. Don’t confuse the desired with the likely. Christian end-time enthusiasts have been wrong for 2,000 years.

Rule: Assume you are wrong. And forecast often.

Rule: Embrace uncertainty.

Saffo ended with a photo he took of a jar by the cash register in a coffee shop in San Francisco. The handwritten note on the jar read, “If you fear change, leave it in here.”

–Stewart Brand

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Categorized as Events

What’s Your Favorite Innovation Book?

Happy new year my readers and friends.

While I once wrote that everything written about innovation is useless (including my own writing), we continue to write about it because writing is thinking, and there’s a lot of problems to think through. The result is some writing that is truly insightful and/or based on hard-won experience, and other writing that is boastful noise. In the spirit of avoiding easy answers and helping us think through tough problems, I’d like to know…

What’s your favorite innovation book (a book that helps you be innovative)?

I’ll start with mine…

Hamel and the Technology-Driven Future of Management

Here’s some terms from a recent interview with Gary Hamel, management guru…

digital device
Internet
the Web
Googlers and bloggers and mashers and podcasters
community
open source projects
PCs, routers, and hubs
social network
MySpace

I’m fascinated by his view that technology — particularly Internet tools — will change management. This isn’t just the hyper-hype of the Cluetrain Manifesto, this is a top-tier business professor who regularly publishes in HBR. When I wondered aloud a couple years ago, Who are the new rebels? (Managers?), I saw this as daydreaming, but perhaps the entrepreneurs of the Internet will also influence future management techniques.

The Internet is the New LAN

As we build more and more functionality into both the client and server sides of the Internet, we’re ending up with, well, client-server technology. But instead of a server in a closet up on the 3rd floor, it’s around the world.

If Microsoft were to update Visual Basic’s user interface and transmission protocols a little, they could leapfrog everyone with a rich Internet application platform ;-)

Alex’s Draft Business Model Innovation Manual

This draft from Alex Osterwalder is very very interesting…

Yesterday I finished a draft for a simple business model innovation manual… The manual will help business people describe their business model step by step, assess its strengths and weaknesses in order to then improve it.

I’ve tried teaching business model creation before, and it’s not easy. In opening Alex’s manual, I immediately looked for his first step; in a model where so many elements are inter-related, where does one start? He starts with customers, which I think says a lot about this perspective of the business world, and how we do business in the 21st Century.

Business Design Term Alert: “Hybrid”

Not that Crain’s NY is any sort of reliable trend watcher, but this me-too article on people who combine technical and artistic skills comes with an interesting frame: hybrids. In one word it sums up a natural blend of two or more disparate skill sets and perspectives, and does so with a term that’s in vogue for its ecological connotations. The business design community, with its confusing label, could do worse than steal this one.