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NATURAL ENTERPRISE -- THE ELEVATOR PITCH







NATURAL
ENTERPRISE -- THE ELEVATOR PITCH

NATURAL
ENTERPRISE -- THE ELEVATOR PITCH
07/02/2004 03:04 PM

Natural EnterpriseIn last week's post on Assembling the Team for Natural Enterprise* I promised that I would present an Elevator Pitch for such enterprises. Although this post is too long to deliver in an elevator ride, it does explain what Natural Enterprise is and why you might want to set one up or join one.

What is Natural Enterprise?
A form of self-organized, self-managed, community-based business partnership in which two or more people agree to make a living together as collaborators and peers, to strive to attain what each member needs to achieve for his or her personal well-being, to accept substantial responsibility for each other, and to respect and help the community or communities in which the enterprise operates. It is 'natural' because this form of socio-economic activity occurs ubiquitously in hunter-gatherer cultures and in non-human animal cultures.

Why is it different?

Modern Corporation
Natural Enterprise
Normal formation mechanism
Incorporation then eventually public offering
Self-organization as partnership
Source of initial capital
Large capital infusion from established corporations, capitalists and lenders, in return for substantial control of the business
Organic, from customers
Organizational structure
Hierarchical, centralized, top-down managed
Flat, networked, self-managed
Decision-making process
Executive decree
Unanimous consensus of members
Importance of innovation
Moderate; it is often easier to buy out, or buy off innovative competitors
Critical
Key strengths
Political and economic power; brand presence
Agility; customer proximity
Sales process
Develop product in lab, mass produce, advertise
Identify unmet customer need, develop customized solution, deliver to pre-qualified customers, market virally
Stakeholder priority
(1) Absentee shareholder-investors; (2) executives; (3) creditors
(1) Members; (2) customers; (3) community
Social & environmental responsibility
Subordinate to shareholder profit
Paramount; implicit and explicit
Optimal size
The bigger the better
Small: 5-150 members each with unique skills or knowledge
Primary objective
Profitable growth
Members' well-being

What's the catch?
Natural Enterprise could be to the modern economy what the Internet has become to modern politics and society -- an anti-hierarchal mechanism that democratizes and liberates economic power and opportunity the same way the Internet has democratized and liberated social and political power and opportunity. Both innovations fundamentally threaten established power, authority, 'wisdom' and control, by undermining them and rendering their hierarchies vulnerable and potentially obsolete. Large corporate oligopolies will recognize Natural Enterprises as threats to their power and profitability, and, much as they have responded to labour unions, will attempt to ignore, circumvent, weaken or crush them. For at least a generation, pionering Natural Enterprises, much like the fledgling Internet of the 1980s, will have to be content to play a minor role. Charles Handy envisions this as being like the relationship of the flea to the elephant -- Natural Enterprise will contract mainly with large corporations as suppliers, and will be to some extent dependent on these large corporations' largesse and their increased proclivity for outsourcing, along with the Natural Enterprises' own innovativeness and agility. As Handy says, such uneven contracts will at least be an improvement on the wage-slave employer-employee contracts they supersede. And eventually Natural Enterprises will become so numerous, and specialized and adept in so many industries and aspects of business, that they will start networking and contracting and associating with each other, using the power of the Internet. And much as specialty stores undermined and largely replaced the large, cumbersome, general-purpose department store, Natural Enterprises could ultimately eliminate the need for and replace large, cumbersome corporations. Just as the Internet created a socio-political and information 'World of Ends', where central control and authority are not needed and all value is created at the 'ends', so, too could Natural Enterprise create an economic 'World of Ends' where corporatism, oligopoly and massive size are not needed in economic entities and where all value is created at the 'ends' -- face to face with customers. It's a revolutionary and powerful and liberating idea, but it will take time, patience and energy to bring it about.

How do I set one up?
The Handbook is now being written. The framework is illustrated above. You can learn more about them here.

.

* What's In a Name? I have used the terms New Collaborative Enterprise, Existential Enterprise (Charles Handy's term), and New Tribal Ventures (Daniel Quinn's term) to describe such enterprises. The 'new' in these terms suggests there are 'old' collaborative enterprises, the term 'existential' has been voted off the island by readers of this blog as too highfalutin' and intimidating a term, and terms like 'tribal' conjure up images of war paint and noble savages. Autopoietic Enterprise (it means self-creating and self-managing) is accurate but unpronounceable and would probably be perceived as pretentious. Readers have suggested the terms 'Natural Enterprise' (Harold Jarche) and 'Organic Enterprise' (Don Dwiggins), which I like because they're simple and descriptive. I like Natural better because its opposite (unnatural) is exactly what the modern corporation is, while the term 'organic' is a bit ambiguous (it means 'related to organs', 'related to organisms', 'carbon-based',  and 'instrumental', of which only the second definition is a propos). I' almost decided to keep 'Collaborative' in the term for two reasons: To stress that these enterprises entail more than one person working together (a sole proprietor, to me, does not an enterprise make, even if s/he is a powerful networker -- enterprises are about people making a living together), and because it would allow me to continue using the acronym NCE, which has gained some common parlance over the past year. But in the end, simpler is better, Natural Enterprise is inherently collaborative, and I was taught 'when in doubt, leave it out'. So Natural Enterprise it is -- thanks to Harold for the inspiration.




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NATURAL
ENTERPRISE: FILLING AN UNMET NEED


NATURAL
ENTERPRISE: FILLING AN UNMET NEED
09/03/2004 04:31 PM
(Fourteenth of fifteen* instalments of the upcoming book Natural Enterprise. )

nat enterprise"Find a need and fill it". I have heard this quote from no fewer than a dozen successful business leaders. Ted Rogers, son of the inventor of the alternating-current radio tube (that allowed radios to be powered by electricity), and one of Canada's most successful entrepreneurs in his own right, recognized a need for more varied radio and television programming in Canada, so he bought up some new and very inexpensive licenses, for FM radio stations (when there were no FM stations and few FM radios), and for Cable TV distribution (when there were very few cable distributors or customers). Ted usually starts his speeches with the six-word quote that began this paragraph.

Entrepreneur Magazine lists 'find a need and fill it' as Rule #1 for business start-ups. Chuck Frey's 'Innovation Tools' says these six words lie at the root of any business success. It's the most important business advice you can give.

But what does this mean? It means that every successful enterprise's offerings (products and/or services) meet four criteria:
  1. They fill an unmet business, social or consumer need.
  2. The enterprise understood why the need wasn't already being met, and overcame those obstacles.
  3. The enterprise has the competencies to effectively create and deliver offerings that fill that need.
  4. The enterprise has the resources to bring those offerings to the marketplace.
This may sound like a simple recipe, but it's actually quite difficult to achieve. The market for products and services, though far from perfect, is reasonably efficient at identifying and satisfying needs. If you find an unmet need, there is almost surely a reason why that need isn't being met by some other enterprise. You need to find out what that reason is, and overcome it. And then you need to gather a team of people with the collective competencies to design, produce, market and distribute the product or service that meets that need, and the resources (physical, financial and intellectual) needed to do so effectively. Easier said than done.

The key to doing this is in research, the difficult, time-consuming (but usually inexpensive) process of discovering the who, what, when, where, why and how of unmet needs. There are two kinds of research: Secondary research entails reading and browsing online to gather information that has already been published about the market, and need, and the possible solutions to it. Primary research entails talking to people directly to answer these questions, gathering unpublished information and intelligence. Successful needs identification usually stems from primary, not secondary research.

How do you go about doing this? To some extent it will depend, of course, on what the business idea is. You're going to have to be creative and patient and methodical in solving the all-important problem of identifying what the market needs, which is not already being satisfied by existing products and services. That means you're going to have to take the time to learn a lot about the marketplace, and about customers. Here are some ideas to get you started:
  • Look at changes and trends in the marketplace: What's hot, and what new needs will the demand for suddenly-hot products and services spawn? How are consumer attitudes changing? How are buying behaviours changing? How is the market changing to respond to changing consumption patterns?
  • What are people complaining about? Every complaint reflects an unmet need.
  • What problems are businesses facing? What's keeping executives awake at night? What could you offer that would let them sleep better?
  • What do people think there's never enough of? Sustained shortages represent business opportunities.
  • What are the gaps in products and services? In The Support Economy, Shoshana Zuboff describes the next economy as one where the customer's needs are met 'end-to-end'. People don't have time or patience to fill in the product and service gaps, like when the great product breaks down and there's no backup, or when the daycare service closes two hours before they get home from work. A gap implies an unmet need.
  • Likewise, is there a new service that you could 'wrap around' an existing product or service to make it more valuable? (Offering haircuts and rinses in people's homes and offices, or dinner on the commuter train, for example.)
  • In Innovation and Entrepreneurship, Peter Drucker identifies seven areas of innovation opportunity resulting from discontinuities, all of which can be used to unearth unmet needs:
    • Unexpected occurrences (if Kerry wins in November, what new market opportunities will that present?)
    • Perception/reality incongruities (when we realize that greenhouse gases will bring about massive climate and environmental change in our lifetimes, how will consumer needs change?)
    • Process weaknesses or needs (some believe advertising has no future: if they're right, what will business need in order to get information to consumers in other ways?)
    • Industry and market changes (what will $160/barrel oil mean to us all?)
    • Demographic changes (with a huge number of people retiring in the next 10-20 years, what will they do with their time?)
    • Buyers' attitude and priority changes (consumers see file-sharing as a work-around for CD price-gouging and TiVo as the solution to lousy program offerings and excess commercials -- what does that mean for these industries?)
    • New scientific and business knowledge (how will RFID devices change the way we live, shop, work, and protect our privacy?)
  • Look at basic, overarching human needs: Health, safety, education, time, decent quality of life, meaning, recreation. How are our experiences of these things currently unsatisfactory, and how might they be improved?
  • What great ideas failed, and why? Maybe they were ahead of their time, and their time is now.
  • What's happening to transform certain industries, or economic sectors like education, public health, and even defense, and how might those transformational ideas, products, processes, technologies and models be applied in other industries and economic sectors?
  • What are big corporations looking to outsource? Could you offer them what they need in those areas?
  • What small "niches of need" exist in big business that other big businesses can't be bothered to address? (Event planning for example).
  • What small "niches of need" exist in consumer markets that big, unspecialized businesses can't be bothered to satisfy?
  • What new regulations exist that need compliance tools, processes, advice on compliance, and assistance?
  • Is there a market somewhere in the world for something we take for granted but they don't have at all? And vice versa, do people in some other countries take for granted things that we have never considered selling here? In Europe, for example, some movie theatres offer excellent cuisine and fine wine -- would that work in North America?
So now you've identified an unmet need, or, better, a whole raft of them. How do you investigate why these needs aren't already being met, and identify the competencies and resources that your enterprise will need to galvanize to fill those needs? The successful entrepreneurs I know all say they talked to a lot of people -- potential customers, potential suppliers, prospective competitors, experts in business startups, industry experts, market analysts, and others -- before they did anything else. The more people you talk to, the more you will learn, the closer the consensus of those people will approximate the true marketplace for your idea, the more alternative ideas you will be able to consider, the less likely you will hit the landmines that undo so many businesses with great ideas who rush prematurely into the market with suboptimal solutions. As you do your research, keep asking these questions until you're highly confident that you know the answers:
  • What exactly is the need?
  • Who exactly is the customer (the group that has that need)?
  • What are the alternative solutions to it? What are the benefits and drawbacks of each alternative? Which, all things considered, are the best, affordable alternatives?
  • Who is offering, and who could easily offer, each of those solutions? Why aren't they already offering these solutions?
  • What competencies and what resources would your enterprise need to have to bring the best alternatives to market?
No matter how wide a net you cast, you will probably be able to winnow the list down to a very few viable alternatives for each of a few needs that you believe your enterprise could competently satisfy. The best way to decide among these alternatives and needs is to do even more, mostly primary, research. Take a sketch or a prototype of your solutions (that's plural) to a significant cross-section of prospective customers and ask them to choose between them. Ask them how much they'd pay for it. Ask them what's wrong with it and what's missing. Ask open-ended questions (not just multiple choice or true/false, the way so many telephone 'surveys' do) and listen and take notes on the answers. If you're genuine and enthusiastic you can gather extremely valuable and reliable information this way, information you cannot get any other way, and which no one else will have.

You'll also learn a lot about the research process, and you'll get better and faster at it the more you persevere. I know researchers who are the de facto Subject Matter Experts on a lot of subjects, far more informed, and better able to substantiate their opinions, than the gurus who have worked in the industry all their lives. Good primary researchers have the benefit of current information gleaned directly from the horses' mouths, a lot of them -- the Wisdom of Crowds.

You might think it takes a lot of gall to get so many people to give you so much information and to offer their opinions free of charge. But entrepreneurs and researchers I know tell me people are often glad to help, and to offer their opinion, as long as the demand on their time is modest and that the solicitation is polite and personal. That means, ideally, face-to-face, with the telephone used only to secure an interview with them. Prepare to wear out a lot of shoes doing your research.

Because business' products and services are so diverse, it's hard to generalize beyond this point about the process of Filling an Unmet Need. As the next three chapters will show, not only does going through this painstaking and time-consuming process almost guarantee you success, it can also dramatically reduce the amount of time, effort and money you need to spend promoting and marketing your product or service (you've already met a lot of your first customers, and if you fill their unmet needs they will spread the word to others -- and take some pride in having played a part in your success), and it can even reduce the amount of money you need to raise to launch the enterprise. But most importantly, you should follow this process, gruelling as it may be, because it works. If you doubt me, talk to any successful entrepreneur about the value of doing this, and you'll be convinced.

In fact, this book, and the university-level Distance Learning course being built around it, came about precisely by this process: Prospective entrepreneurs, MBA students and professors I had been talking to over the past year kept telling me there was an urgent need for proven, comprehensive, practical business advice for entrepreneurs, both those looking to start their first business and those disenchanted with the struggle and disappointment that 'traditional wisdom' about entrepreneurship had led to. So I'm confident that this book will be a success and prove the entire point of this chapter, and without the need for a massive book publicity campaign.

* As the book nears completion, I've taken the liberty of revamping the order and the organization of the chapters somewhat. Chapter 11 (Day to Day operations) will now become part of an expanded Chapter 5 (Improvisational Planning and Day to Day Management), with additional material on self-managed enterprises (defined goals, roles and collaboration processes), on entrepreneurial decision-making (communication, consultation and consensus-building), personal productivity improvement and management by 'walking around'. Chapter 10 (Launch & Life Cycle) is being renamed Business Evolution and will be the final chapter in the book (an excerpt from this chapter, describing organic life-cycles, complex adaptive systems, succession planning and 'natural death', will appear next week in this blog). The material on Innovation will be spread across three chapters: The Importance of Innovation (why it has been historically the #1 driver of business success); An Innovation Culture (including how to develop core innovation competencies); and The Innovation Process. Confused? A complete table of contents will appear with next week's instalment. The final book will also include about 50 'mini-case studies' drawn from my personal experiences with entrepreneurs, and from some of the leading literature on entrepreneurship: Success stories of companies that have exemplified Natural Enterprise, and war stories of those that, mostly, have not. Many thanks for all the comments from readers that have helped make writing the book a joy, and a truly collaborative experience!

PITCH LOCK:
AN INNOVATION WAITING TO BE
EXPLOITED?


PITCH LOCK:
AN INNOVATION WAITING TO BE
EXPLOITED?
09/09/2004 05:41 AM
sarahcompressedUnless you're a DJ, or have one of those high-end digital music players, mixers, or mixing software tools (and actually read the instruction book) you probably don't know what Pitch Lock is. Basically, it's a function that allows you to change the tempo (speed) of a recording without changing its pitch. DJ's use this function to 'sync' two songs so that one blends into the next. This is called 'beatmixing' and here, from the DJ Cafe site, is an example of how it's used, with cross-fading (lowering the volume of the ending song while increasing the volume of the starting one) to make a series of songs with different beat-per-minute tempos into one 'endless' song:

If the song the crowd is hearing is 130 BPM, and the next song you want to play is 132 -- you slow the second song down to 130 bpm using pitch control, and cue it up to the beat. When you are ready to bring the second song into play, throw the record so the beats stay aligned and listen to it on your headphones. Make sure they are in sync!! Once you are sure things are in order, use your cross fader to let the new song blend into the old one, and eventually go completely across so only the new song is playing. This will give the illusion that the song never ended.

I didn't think much about this, although one of the software tools that works with my MP3 jukebox has a Pitch Lock feature, and it was kind of fun slowing down and speeding up my favourite songs and second-guessing whether the artists should have picked a different tempo. But then this afternoon I was listening to one of my favourite songs from the new Sarah McLachlan album on the radio and it sounded funny -- a lot faster than the version I was used to. I figured it was a remix so I listened through and the DJ announced it but didn't say anything special about it. So I cued up the original and listened, and I knew it wasn't a remix or my imagination. And then it occurred to me: The station is using Pitch Lock to speed up the songs by a just-less-than-noticeable amount so they can play more songs per hour and have more time for commercials.

So that got me thinking: What else could this be used for? Consider this fact: Average speech is about 140-160 WPM, and when we try to speak much faster than that our speech becomes slurred. When we're thinking about what we're saying, we talk even slower -- 80-120 WPM. But we are able to comprehend properly-articulated speech of 210 and even 240 WPM without difficulty (average reading speed, by contrast, is 275 WPM, and speed readers top 800 WPM, though they don't read every word). So that means that we could use Pitch Lock to accelerate speech by 50%, to a speed much faster than we could crisply deliver it, but with no loss in comprehension. And thanks to Pitch Lock, it would come out in the same deep, calm, enticing voice as the original, but deliver 50% more words, information or argument per minute. Still think this is a silly innovation?

Here are some commercial and time-saving applications that occurred to me right off the top of my head. I'm sure there are more:
  1. Voice-mail message replay: Double the playback speed to whisk past the ums and ers and retrieve your messages in half the time.
  2. Audio tape/audio book learning: Get through the tapes in 2/3 the time; learn 50% faster. Ditto for audiotaped or even videotaped conferences.
  3. Advertising: Tell your customers, or your potential voters, 50% more in the minute you're paying for. And maybe, by using up their idle brain time, reduce attention deficit syndrome and get people to pay closer attention to what you're saying to boot. Or maybe not.
  4. Language learning: Slow down the playback speed while you're learning a language, and gradually increase it as you learn to parse the words faster and as your vocabularly grows. This could also be used for simultaneous translation in conferences, as long as they allowed short breaks after each speech for the translator to catch up.
  5. Padding a good show: If the show you're watching or the music or talk you're listening to is wonderful, and you never want it to end, or if you're a producer and the program's a bit short, just use Pitch Lock to stretch it out a bit. After all, if Bernstein can get away with stretching Samuel Barber's famous and extraordinary 6:50 Adagio for Strings into a piece that lasts over 10 minutes without adding any notes, maybe he's on to something.
  6. Studying and transcribing music: Having trouble following the chord changes or finger patterns in a favourite song? Slow it down with Pitch Lock and take your time. Likewise if you're visually disadvantaged, slow down speeches to the pace at which you can comfortably take notes.
These and other applications could be exploited either at the time of recording, or at the time of playback. I'm sure the military and forensic sciences are already using this. It might also be used to listen to heart-beats, or study the songs of whales or birds, in slow motion yet at an audible pitch level. Or to determine an optimal speaking rate for computerized voice synthesizers (likely a lot faster than today's unsophisticated versions).

What else could Pitch Lock be used for? And what if we combined it with other new technologies: For example, could we teach speech-recognizing computers to 'speed talk' much the way we 'speed read', to 'read aloud' or play back the common words that make up 80% of normal speech and are not essential to understanding at, say, 500 WPM, and the rest at 200 WPM, so we could become 400 WPM 'speed listeners' and 'speed learners'? And in this increasingly oral/aural culture, might we then give up reading and writing entirely?

JUDITH
MESKILL'S WEBLOG PERFECT PITCH
COMPETITION


JUDITH
MESKILL'S WEBLOG PERFECT PITCH
COMPETITION
05/02/2004 03:29 PM
elevatorJudith Meskill, who simultaneously runs two weblogs (Knowledge Notes and The Social Software Weblog), recently ran a contest to write the Perfect Pitch for weblogs in business. The idea was to write a very short speech (short enough to deliver in a short elevator ride) that would persuade a senior executive of a company to introduce blogs in their company. I was honoured to have been asked to be one of the judges. The winners were Lee LeFever, Randal Moss, Jack Vinson and Michael Angeles. Lee's prize winning pitch was:

First, think about the value of the Wall Street Journal to business leaders. The value it provides is context — the Journal allows readers to see themselves in the context of the financial world each day, which enables more informed decision making.
 
With this in mind, think about your company as a microcosm of the financial world.  Can your employees see themselves in the context of the whole company? Would more informed decisions be made if employees and leaders had access to internal news sources?
 
Weblogs serve this need.  By making internal websites simple to update, weblogs allow individuals and teams to maintain online journals that chronicle projects inside the company. These professional journals make it easy to produce and access internal news, providing context to the company — context that can profoundly affect decision making.  In this way, weblogs allow employees and leaders to make more informed decisions through increasing their awareness of internal news and events.

Now the winners get to turn the tables on us judges. This time we (Dina Mehta, Don Park, Flemming Funch, Jim McGee, Lilia Efimova, Martin Dugage, Phil Wolff, Ross Mayfield, Scott Allen, Ton Zijlstra and yours truly) have to write a Perfect Pitch for blogs in business, and the winners get to judge our entries. Keep your fingers crossed for me. I can't tell you my entry because Judith is going to keep the identity of each submission hidden, so that no one is swayed by our awesome reputations in casting their vote ;-)

Read more about the contest he re.

A HERETICAL
APPROACH TO ENTREPRENEURSHIP:
EXISTENTIAL ENTERPRISE 101


A HERETICAL
APPROACH TO ENTREPRENEURSHIP:
EXISTENTIAL ENTERPRISE 101
06/17/2004 01:15 PM
Entrepreneurship Process
©2004 The Caring Enterprise Coach
This article is a summary of what everyone should know before starting their own business. It assumes that you've done the following groundwork:
  • You've decided what you want the business to be about
  • You believe you have some core competency -- something you are exceptionally good at -- that will be valuable in such a business
  • You have the key attributes of an entrepreneur: Common sense and self-confidence
  • You have the basic skills needed to succeed in any business: Creativity, communication skills, information management skills and interpersonal skills

If you talk to your local accountant or small business advisory office, they'll probably tell you about the importance of doing a business plan to raise financing, the need to incorporate and register your business name, how to advertise your product and service, and the importance of administrivia like business cards and letterhead. They'll also probably tell you that entrepreneurship takes courage, patience, an ability to handle enormous stress, and a willingness to take risks and work long, hard hours. And they'll tell you that growth is paramount.

Most of this is nonsense, and all of it is putting the cart before the horse. Why do they tell you this? Because it's what they've been taught, and because of the frightening failure rate of small enterprise. But most entrepreneurial businesses don't fail because of bad advertising, cowardice, owner laziness or inability to handle stress. They fail because they are poorly thought out, poorly researched, set up wrong, marketed wrong, badly managed, and given terrible business advice. I base this immoderate assessment on my experience working with over a hundred entrepreneurs, listening to their stories, and seeing what works (and what doesn't) in small enterprise, and why.

Let's take a step back and consider what an entrepreneurial business is. It is a (usually small) number of people with a shared idea and a willingness to work together to make that idea commercially viable. That means, according to what they teach you in business school, finding capital, developing your product and then going out looking for customers for it.

This is a recipe for failure. The money you borrow (which in an entrepreneurial business is always horrifically expensive) compromises your control and immediately presents the possibility of the loan being called, and the personal assets securing it being forfeited. And there are a million possible reasons why there could be few, or no, customers for your product. The #1 reason entrepreneurial businesses fold is because they simply run out of cash. The #2 reason is because the owners make one or more fatal decisions, and the most common fatal decision is to produce a product that nobody wants to buy.

Here's an alternative model, based on what Charles Handy calls Existential Enterprise, and which I have called New Collaborative Enterprise. Its first two principles turn the business school formula upside down:
  1. Marketing: Don't sell or market anything -- identify and produce something for which there is a substantial unmet need.
  2. Financing: Don't borrow money or sell part ownership in your business -- only spend your own cash or cash you've earned.
This isn't rocket science. The first rule simply says do your research before you start, do it thoroughly, and do it with potential customers. That way you have sales before you have costs. Then rule number two becomes easy -- your customers finance your business, and the debt is quickly extinguished when the product is delivered. This is an oversimplification, of course. You can't always finance operations this way. But if you have to borrow, the principle is the same -- pay it off fast, as part of the same transaction that gave rise to the debt in the first place, and never give up equity -- it's like selling your soul. Most women can confirm the insanity of spending cash you don't have -- which is one reason women entrepreneurs tend to start their businesses more slowly, and keep them going much longer.

Time for some more heresy. MBA graduates will tell you to select a management team with a balance of skills -- operational, financial, sales, management etc. But they don't know what your particular business needs -- if the business is an R&D outsourcer it needs people with deep knowledge about research, not accountants and sales executives. An Existential Enterprise will follow these principles instead:
  1. Association: Make a living only with people you love and trust -- life's too short to spend so much of it with people you don't care about, or worse. In most cases, don't incorporate -- it adds paperwork, has no tax benefit and usually offers no liability protection to the entrepreneur. A partnership requires little or no bureaucracy and is infinitely flexible. Instead of a shareholders' or partnership agreement, develop together a simple Statement of Objectives and Operating Principles, which affirms why you're making a living together, commits all members to live up to certain shared standards of behaviour, and affirms that each member is responsible for the well-being of all other members, as each member defines well-being, and responsible as well to the community in which it operates.
  2. Management: Let the group that you make a living with select and manage itself (new members and expulsions require unanimous approval of other members), based on the 'mutually exclusive/collectively exhaustive' skills principle (i.e. each member should bring unique and critical skills to the enterprise, and between all the members you should have all the skills that you collectively decide you need).
  3. Structure: Have no titles, no reporting lines, and no hierarchy -- all members are equal. No "employees". No "leaders". If ego-fulfilment is part of your reason for starting a business (which wouldn't be surprising if you were recently 'downsized'), you'll need to get that satisfaction from making the business work and making yourself and your partners happy. If you feel the need to boss people around, find somewhere else to do it. The only reason for the cult of leadership in big business is that big business is basically unmanageable, and arrogant, overpaid bullies can make it appear slightly less so to its investors.
This may sound idealistic, but it works. Partnerships are a very common form of business organization, and those formed with family members and others where there is a bond of love and trust are especially durable. And many large businesses are learning the benefits of flat organizational structure, decentralized decision-making, and the abolition of titles.

Next, the business school grad will tell you you need systems that provide each person with compensation and reward that is 'commensurate with performance'. That means your partner who's independently wealthy and who self-promotes like crazy will get money he doesn't need, and the young, modest partner with a big mortgage will get less money than he needs, and so will probably leave to get more. And the partner who values and needs her spare time but who has critical and scarce skills will be bribed to work long hours and so will probably leave to get less. Here's a more sensible approach:
  1. Goal-Setting: Have each member discuss with the others what (income, time off, travel, non-travel etc.) they want and reasonably need from the business. Define that, not growth or profit, as 'success'. Measure your attainment of it. Don't bother with more traditional measures -- they don't matter. Together, plan and operate the business to achieve that success for each individual.
  2. Defining Roles: From that definition of success, collectively define the enterprise's goals, and have each member create their own role statement to achieve those goals. Refine these role statements together, to close any gaps and remove overlap. You may have to add members to do this, and members with redundant roles may have to self-select out.
Now everyone in your enterprise knows what you're trying to accomplish, what it will take to achieve it, what's in it for them, and what their individual role is. If each member has the key attributes and basic skills listed at the start of this article, you have all the ingredients in place for a successful (on your own terms) enterprise. All you need to do now is communicate well and avoid the landmines.

Think of it as a jazz combo versus a traditional symphony orchestra. In the jazz combo, everyone knows their role, takes their cues from each other, and communicates network-style with the other band members and with the audience (customers). If the audience gets restless (customers are dissatisfied or their needs change) you can improvise quickly. You don't need hierarchy. By contrast, the symphony orchestra, like the traditional business, is hierarchical, communicates only through the guy at the top, and is totally stuck to the rehearsed script (the business plan). If the audience is unhappy, the symphony just ignores them and plays on. Which business model makes more sense to you?

Once you're up and running, here are three final principles to keep things going smoothly:
  1. Networks: Networking is critical to every business. Business success correlates highly with the amount and breadth of effective, face-to-face time (telephone time is OK, but a very poor second) -- time you spend with (a) customers and prospective customers, no matter what your role is in the enterprise, (b) experts and coaches that can listen to your problems and provide richly contextual insight to help you do your role better (these will often be other entrepreneurs, who you can help and coach reciprocally), and (c) allies -- strategic partners who offer you access to markets and supplies and connections, knowledge you wouldn't otherwise have, new ideas and emerging innovations and technologies, and other mutual advantages.
  2. Managing Growth: If the business needs so many people that it gets unwieldy, encourage the members to break it into two or more small Existential Enterprises with no members in common. Don't worry, it won't fall apart -- in fact it may even be tighter and stronger, as long as each enterprise keeps following these principles. We live in a World of Ends, and command-and-control is now not only unnecessary, it's an impediment to success, and it makes people unhappy.
  3. Stakeholders: The needs and happiness of the members, you and your partners, come first. Your customers come second. The interests and needs of the community in which you operate come third. That's it. Remember this priority when you make decisions. In Existential Enterprise, there are no shareholders, absentee owners, creditors, Board of Directors or Board of Management to usurp this critical priority, to interfere and force you to do things you don't want to do, to make you a wage slave in your own enterprise.

Most of the problems in traditional entrepreneurial business -- the ones that lead to the stress, long hours, divorce, sacrifice, unhappiness, and, often, failure -- are created by the MBA mythology of how to start, build and operate a business -- a mythology that often defies intuition and common sense. And that's all these ten principles are: Common sense, that I've seen work in dozens of small, successful enterprises, and the ignorance of which has been the undoing of dozens of others I have worked with. That's why people with no formal business training are sometimes the best entrepreneurs: They don't have to unlearn all the nonsense, and guided by common sense they instinctively build something closer to the Existential Enterprise model than the Business School model.

I'm not saying that this is easy. Adhering to these ten principles (especially the first two) requires a lot of time and energy, and considerable intelligence. But they are relatively fool-proof and stress-free. After all, what could be more joyful than creating a successful enterprise with people you love and trust, on your own terms -- a true labour of love?

HERDING
CATS: ASSEMBLING THE TEAM FOR YOUR
EXISTENTIAL ENTERPRISE


HERDING
CATS: ASSEMBLING THE TEAM FOR YOUR
EXISTENTIAL ENTERPRISE
06/22/2004 03:52 PM
stepping stones 3
In previous articles on New Collaborative (Existential) Enterprises, I've explained what existential enterprises are, how to avoid the most common landmines, how viral marketing works, and the role of innovation. This article will focus on assembling the team for your New Collaborative Enterprise. This step is what differentiates NCEs most from traditional small enterprises. It is also probably the hardest step, the most important, and the most personal.

Assembling the NCE is a juggling act. You need to simultaneously accomplish two things:
  • Find people you profoundly love and respect -- an NCE is a partnership every bit as deep as a marriage.
  • Find people whose skills and knowledge match, nearly perfectly, the skill and knowledge needs of the enterprise you want to build, with minimum overlap (if you have two experts in X and you only need one, guess what the two experts will spend most of their time doing?)
If this isn't hard enough, these attributes are likely to change constantly: You may change your mind about what you want your NCE to do, you and your partners' skills and expertise may change, and your attitude towards your partners may change (or vice versa). All of these will require changes to the team. The good news is that the selection of the team isn't your (or any one person's) job -- it is the essential collective responsibility of the team itself. NCEs are self-selected and self-managed enterprises, because a cohesive group together can always make better decisions than any one person can. As you're assembling the team, your first job is to explain what an NCE is and what's so good about them to your potential partners (I'll cover this in next week's article in this series), so that they accept the shared responsibility for building the team and the enterprise.

This will take some practice and may have some surprising fallout. You might find that as the team assembles itself, you're the one with the redundant skills, and the other potential partners will urge you to self-select yourself out of the enterprise. If so, it's back to square one, creating a new team, possibly doing something somewhat different from what you had envisioned, where your skills and expertise are truly critical to the enterprise. If it sounds a lot like dating, it's because that's precisely what it is.

You may also find that, with the collective wisdom of the team, you may have second thoughts about what you want the enterprise to do. One team member may inform the team that the need you thought you had identified doesn't really exist, or is quite different from what you'd thought. When you refocus on a new need, a new enterprise objective and purpose, it is likely that the skills and expertise you will need to bring it to fruition will also change, and the whole constitution of the team will need revisiting. Just remember, the selection of the team is a shared responsibility. There is no hierarchy.

There will also be a temptation, until the Internet and our society really understand NCEs and help facilitate their formation, to settle for something less than the ideal team. Obviously I can't tell you (and your team) that this is a categorically bad idea. But it's like lowering your sights after you've unsuccessfully asked several lovers to marry you, and propositioning someone you don't really love just to get a 'yes'. Sometimes it's better to keep looking rather than settle for something that's not likely to succeed or make you happy. If you want to be rich and miserable, an NCE is not the answer (marry someone rich instead).

Each potential partner brings acquired skills and knowledge to the enterprise. Let's look at what these terms mean.

From what I've observed in over a hundred entrepreneurial businesses, there are five key groups of business skills:
  • Creative skills -- the ability to conceive, design and apply new ideas
  • Communication skills -- the ability to compose, present, and express ideas and information
  • Information skills -- the ability to organize, understand and apply information
  • Interpersonal skills -- the ability to appreciate, connect with, and persuade other people
  • Spatial skills -- the ability to sense, visualize and coordinate physical objects and actions
While a base level of all these skills is essential for anyone who hopes to succeed in business (or anything else in life), we each excel at only a few of these skills. What we do best is largely a function of what we most enjoy doing (because all of these skills can be learned, and practice makes perfect). Our niche skills, our 'distinctive competencies', may be broad (across all five skill groups) or deep (e.g. the writer who composes brilliantly but can't even deliver his own speeches, or sing his own songs, well).

Knowledge, on the other hand, is what you have learned about specific subject matter. If I want to write software, just having the skills is not enough -- I also need to study and learn programming languages and about information systems and the business environments in which they're used. Some knowledge can be acquired academically, while other knowledge can only be learned from experience.

The combination of skills and knowledge is what we call expertise. Ideally, you want your enterprise team members to have expertise. But if you're young, you may have the skills but not the knowledge. And if you're old, you may have the knowledge, but your skills may be rusty. Your team may therefore consist of some people with skills and others with knowledge -- as long as they love and respect each other, that can be just as good as having expertise, and may be a lot easier to find.

I can see some eyebrows raising when I talk about loving the people you work with. We have been culturally conditioned to leave our emotions at the door when we go to work (and school), to spend half our waking lives sublimating what we feel and just doing what we're told. In a hierarchical organization this is ideal, though it saps the energy and creativity out of workers. But how sick is that? Why should we spend half our lives being what we're not?

If your enterprise is to be a place of passion, joy, and fulfilment (and it should be!), then it will be a place where emotions run free, and that means its partners need to deeply respect and love each other. No matter how perfect a fit their skills and knowledge are, if they don't care for, and about, each other, your enterprise will be a place of chaos and conflict, and will eventually self-destruct. That makes the task of assembling the team even harder. But imagine -- a whole team of people, doing what they do best, their expertise perfectly meshed, engaged and passionate and crazy about their jobs and each other -- isn't that worth the hard work of assembling the perfect team?

I have reviewed, quite negatively, the first generation of social software tools designed to help people find other people they want to be with and/or work with. It does not surprise me that many of these tools ask you for lots of personal information and seem to be used more for finding dates than business partners. In fact, I think that's what's good about them. Assembling the team for an NCE is a job of matchmaking, of seeking love interests, as much as it is a job of acquiring skills and knowledge in human 'containers'. That's one of the reasons NCEs must be self-selected: No one person can accurately gauge the affection that partners will have for each other, and it takes an enormous amount of energy and effort to find just the right people, more than any one person can hope to muster. The next generation of social software tools will, I believe, make it much easier.

The pioneers of NCEs will need extraordinary patience and tact, as all pioneers do, because we're not used to dealing with each other this way, especially in establishing business relationships. Like all pioneers, we'll need to learn by doing, and document what works and what doesn't, and share this with each other, to make the road easier for those that follow.

Last but not least, I have to confess, I have found no proven, successful model yet for a complete Existential, New Collaborative Enterprise. I am hoping that when I meet with Charles Handy, whose concept of Existential Enterprise is entirely consistent with the NCE concepts I have been writing about since before I had heard of his work, he will be able to tell me some success stories. I have studied about a dozen enterprises that claimed, or appeared, to be excellent models, but found them critically lacking in one or more attributes. I know of many enterprises that have some of the attributes of an NCE, and they all believe those attributes are what make them successful and happy, but these aren't yet the stuff of great models. If you took these attributes and combined them in one enterprise, you would have a complete NCE, and there is no reason to believe it wouldn't be a great company, and a perfect model for other pioneers to follow. But I must be honest -- all the individual parts have been tested and work wonderfully, but the whole has yet to be put together in one vehicle and driven. Before the publication of the book of which these articles are a part, I am hoping to find one, or even better, a few. If not, readers will have to settle for some limited-scope success stories instead of a comprehensive one. To illustrate this 'chapter' on Assembling the Team I would then fall back on three family-owned businesses I know well. Their partners meet all of the criteria I have described above -- they love and trust each other, they have a perfect match of skills and knowledge between them, with no overlap or redundancy to cause 'expertise conflicts', and they make all key decisions collaboratively and by unanimous consensus. My only reason for not describing them in more detail here is that they didn't have to go through the hard part of finding each other, assembling the perfect team. They were already together, by fortunate accident of birth or marriage. What's interesting is that I also know of many failed and miserable family-owned businesses, all of which lack the love, trust, respect, and/or mesh of essential skills and knowledge that my three successful proto-NCE family businesses have.

And even more interesting, neither the partners nor the employees in these three NCE-like family businesses work anywhere near as hard as most people. They have more leisure time, more time set aside for social activities, and more fun than those in any other businesses I know. And even when they are working, it is a true labour of love. They are workplaces of great joy.

We all deserve as much.

PS: I need your help, dear readers. I have been using Charles Handy's term Existential Enterprise, and my term New Collaborative Enterprise (NCE) interchangeably. This is probably confusing to readers, but I can't decide which term, if either, to use. I wrote about NCEs several times before I discovered Handy's work. His term is simpler and needs no acronym, but the word 'existential' sounds kind of academic, theoretical, even intimidating to those who don't know what it means. So what name should I use?

THINK
GLOBAL, ACT LOCAL: PETER SINGER'S
ONE
WORLD


THINK
GLOBAL, ACT LOCAL: PETER SINGER'S
ONE
WORLD
04/23/2004 09:24 AM
one worldIf you're a regular reader of this blog, you probably know that I'm opposed to unregulated 'free' trade, very worried about the extraterritoriality of the WTO, NAFTA, Davos and other corporatist captives, strongly opposed to domestic corporations 'offshoring' jobs, using influence with the Bush regime and other right-wing governments to circumvent social and environmental laws and responsibilities, and a great believer in taking the pledge to buy local, and in community self-sufficiency.

At the same time, I'm a strong supporter of the UN and other multi-lateral NGOs, and I believe that we each have a responsibility for the well-being of all the people and creatures of this world. Some readers have said this view is inconsistent, and I wasn't quite sure how to respond to such charges. Fortunately, Peter Singer, in his recent book on global ethics, One World: The Ethics of Globalization, has come to my rescue. Singer sees no inconsistency between strong local autonomy, community, and self-sufficient economies on the one hand, and global responsibility on the other. The book is based on the Dwight Terry lectures at Yale in 2000, but has been updated to incorporate reflection on the events of 9/11 and the appalling Bush social, environmental and economic record.

I'll have more to say next week about Bush's fraudulent and despicable Earth Day media blitz, and the major media's shameless lack of critical evaluation of the utter nonsense that his propaganda machine has been churning out this week on the environment -- newspeak of Orwellian proportions. The first part of Singer's book deals with environmental responsibility, and his prescription for increasing it -- immediate ratification of Kyoto by the US and other holdout countries, and introduction of an emissions trading mechanism to make the realization of Kyoto feasible (subject to the need for some oversight on the disposition of the proceeds of such trading when it involves autocratic governments).

The second part of the book deals with the global economy, and Singer adroitly tears apart the Economist's (and other neocons') naive assertion that economic globalization somehow benefits both rich and poor countries. He then goes on to prescribe a substantial reform of the WTO and the GATT, which could actually lead to more equitable distribution of wealth and more efficient production of economic goods, while safeguarding human rights, labour and the environment. Unfortunately, the multi-national corporations and corporatists who hold sway in the WTO would never tolerate Singer's prescription, since it would entirely divert the benefits of economic globalization from their pockets to those of the world's poor.

The third part of the book deals with international law, and Singer lashes out at Bush for his unconscionable refusal to ratify the International Court of Justice, and for the UN's continued hesitancy to accept a duty (not a right) to intervene in situations of genocide and other humanitarian crises, even within a single nation. Singer is sanguine about the limitations and dangers of 'global government', but supports strengthening the UN to enable it to act as a 'protector of last resort', and including in its mandate the responsibility to supervise elections in all member nations.

The fourth and final part goes back to ethical principles and proposes that countries must, in this world where national boundaries no longer have any logistic meaning, set aside national interest and embrace, once and for all, global interest, impartially. That does not mean cultural homogenization, but imposes a responsibility for the reduction of inequality, both of economic resources and personal rights and freedoms.

Always the pragmatist, Singer concludes by worrying out loud about how the responsibility for a global ethic could be managed:

It is widely believed that a world government would be, at best, an unchecked bureaucratic behemoth that would make the bureaucracy of the EU look lean and efficient. At worst, it would become a global tyranny, unchecked and unchallengeable. These thoughts have to be taken seriously. How to prevent global bodies becoming either dangerous tyrannies or self-aggrandizing bureaucracies, and instead make them effective and responsive to the people whose lives they affect? It is a challenge that should not be beyond the best minds in the fields of political science and public administration.

I'd like to believe that this was possible, because if it isn't, we're in serious trouble. We cannot expect national governments to set aside parochial interests, especially when this entails accepting a responsibility that would, for the richer nations, inevitably lead to a drastic redistribution of wealth to poorer nations and hence a sudden and sharp reduction in, at least, economic living standards (if not necessarily well-being). But as John Ralston Saul has so eloquently argued, larger organizations and institutions, whether public or private, are almost always, and inherently, less efficient, less agile, more resistant to change, more hierarchic, and less transparent than smaller organizations. So the challenge is to achieve the best of both worlds, having organizations of global scope and authority and responsibility, but broken up into sufficiently small, autonomous and dynamic units that they are sensitive, resilient, responsible and responsive to the people and communities they serve. We can only hope that "the best minds in the fields of political science and public administration", wherever they are, are up to the task.

THE MOST
IMPORTANT IDEAS OF 2003 - PART ONE


THE MOST
IMPORTANT IDEAS OF 2003 - PART ONE
01/07/2004 01:07 PM
This is the first of five articles in a series that will be published intermittently this month. This article summarizes what I believe were the most important ideas of 2003 in the world of blogs and blogging.  The other articles in the series will propose the most important ideas of the year in:
  • business,
  • politics & economics,
  • arts & science, and
  • the environment.
line

BLOGS & BLOGGING -- THE TEN MOST IMPORTANT IDEAS OF 2003
process
During the year, the blogosphere doubled in size, and began to mature into a true alternative medium for information and connection. My nominations for the most important ideas of the year* in blogs & blogging are:
  1. The Internet is a World of Ends - Doc Searls and David Weinberger finally explained to bloggers and to e-business what the Internet is and how it works. As a result, bloggers (and blogging tool developers) now realize that there will never be 'standards' for blogs, blog censorship, clear rules on what is and isn't appropriate in citing others' work on your blog, standard blog taxonomy and categories, an official definition or list of blogs, unarguable or untamperable rankings of blog popularity, or controls of any kind. It's a jungle out here. There are no rules. The blogosphere, like the Internet, is owned by no one, open to everyone, and made better by each of us. A cornucopia of unrestricted and open innovation. Its value flowers at the ends, and, fellow bloggers, we are the ends.
  2. Blog popularity is subject to Shirky's Power Law - "In systems where many people are free to choose between many options, a small subset of the whole will always get a disproportionate amount of traffic (or attention, or income), by the very act of choosing". It's the old 80/20 rule. The later you are starting to blog, the harder it becomes to find an audience. Not impossible, just harder. There are anomalies: new blogging communities and new 'hot topics' can allow savvy bloggers to quickly galvanize a readership. But if you want to be popular in the blogosphere, it's more important to be first than best.
  3. Blogs have Tipping Points and manifest the Strength of Weak Ties - Ever noticed how hard it is to get your family and close friends ('strong ties') to read your blog? That's because they see no incremental value in doing so. But friends of friends, people two or three degrees removed from your network, do. Weak ties probably got you your job, found your life partner, provoked your most innovative ideas, and sourced most of your blog's readership. And you can exploit these weak ties to push a new idea, find new readers, perhaps even save the world. It's easy: Just Test the credibility of and degree of interest in what you're saying by sending messages to selected mavens (bloggers who incubate new ideas and stick with them until they catch), A-listers (bloggers who already have a huge audience), and connectors (bloggers, like me, who have an audience that crosses diverse communities of interest); focus on a few subjects and address them profoundly and creatively, instead of talking a bit about everything under the sun; and believe: persevere until your message finds its audience.
  4. Blog functionality is a critical component of Social Networking, and Social Networking will transform blogging (and also transform the Internet, the media, the way we communicate, and even the evolution of business) - Social Networking Applications (recently voted Technology of the Year by Business 2.0 magazine) will go beyond just allowing you to publish what's on your mind and browse what's on other people's. They will allow you to map and manage your networks, the communities to which you belong, your strong and weak ties. They will evolve blogging from clumsy, mostly one-way communication to a rich, two-way seamless multi-media communications medium that will allow you to identify and connect simply and powerfully with people you want to know better (for personal, practical or business reasons). Build deep relationships. Collaborate on awesome projects. Find the next president.
  5. Blogs could be the platform for a proxy for each of us as individuals, our electronic filing cabinet and electronic identity - A blog consists of information about you, and knowledge you've accumulated. What if you expanded it to be a repository for all the information about you and all the knowledge you've accumulated, your 'locked' filing cabinet. You control it, you decide what does and doesn't go into it, and who can have a temporary key to what parts of it. Then at work, it could be your proxy, the repository of knowledge that shows your value to your employer and the value you've added to the company. And it could be your resume. At home it could be your medical patient record. Your bookshelf catalogue and refrigerator/pantry inventory and recipe book. Your bio for the dating service. Imagine the applications that could be built on this knowledge. Your intellectual property, under your control. Amazing. Scary.
  6. The abandonment of 80-90% of blogs is a positive phenomenon - Media who just don't 'get it' have pointed to the abandonment of most blogs as an indication they're too technologically complex, or have no broad appeal, no staying power. What this abandonment really represents is a large number of people deciding that writing really isn't that important to them. The focus should instead be on the 10-20% who are still blogging. That's millions, potentially hundreds of millions of people regularly honing their writing skills, getting valuable commentary from readers on their writing and their ideas. Instead of a wasteland of abandoned effort, the blogosphere (along with perhaps IM) could actually be the most important development in written language since the printing press. As newspaper readership plummets and the next generation opts for oral communications over written, the timing of this phenomenon could not be more significant.
  7. Blogging is increasingly a platform for achieving mainstream recognition - Just as the main readers of most business websites are competitors, not customers, the mainstream media are perusing blogs for new ideas and trends. So far they haven't really caught on to how the blogosphere works, so the process is serendipitous, creating brief fame mainly for A-listers who provide alternative viewpoints to stories of the day where no mainstream media pundits are at hand. But the mainstream media and bloggers are both learning how to use each other. Some bloggers have launched books based on their blogs, and some blogging self-promoters now have columns or spots in regular media. Those who think there's no money and fame in blogging are too quick to judge blogs' importance in the information society.
  8. The culture of blogging is evolving faster than the technology - The frustration of bloggers with the tools available to them is palpable. That's not the tool designers' fault: They operate on a shoestring and their 'customers' all want something different. They'll eventually build tools that are both simple and flexible, as both the technology, and the understanding of its use, mature. In the meantime, impatient bloggers are working around the impediments, learning about HTML and CSS themselves. This is World of Ends innovation at work, producing a proliferation of new blog 'products' and hybrids. Group blogs are one example of a blog phenomenon that will only last until more dynamic mechanisms for cross-posting and guest privileging are developed in next generation blogs. The key is to go with the flow. Be part of the evolution or be left behind.
  9. Blogs, like diaries, are a substitute for intimacy - Bloggers (and perhaps all writers) are a million voices howling in the dark. There is an inherent loneliness in writing, and the blogosphere provides an opportunity to make new connections with little risk. You don't need to reveal your identity. You can throw ideas out there that you might not dare voice face-to-face, for fear of being laughed at, or carted away. You can reveal things to 'strangers' that you might not be willing to tell those close to you. You can think out loud. You can test the waters, safely. The only consequence is that when you meet a fellow blogger or reader face-to-face, or even voice-to-voice, it can be psychologically jarring. It's almost as if you've broken the rules.
  10. RSS is blurring the distinction between blogs and other media - RSS, the ability to syndicate your posts and let people subscribe to them, transforms the metaphor of a blog from a diary to a publication. That crosses the main divide that separates it from mainstream media. Although the future of any medium is impossible to predict, I believe RSS has played a pivotal role in forestalling, and perhaps completely subverting, the plan of many of the major print media to start charging money for their on-line editions. I know for a fact that was in the cards as recently as a year ago.
What do you think? Have I missed some important ideas?

* Yes, I know some of these ideas are themselves not new this year. There is nothing new under the sun. But I would argue that the application and implications of these ideas were first manifest some time in 2003
 

CANADA HEADS
INTO POLITICAL CHAOS


CANADA HEADS
INTO POLITICAL CHAOS
06/13/2004 10:15 AM
food pyramid
T
wo weeks ago I reported on the upcoming June 28 Canadian election, and predicted that there would be a Liberal minority government, with the NDP holding the balance of power. Since then, groupthink has taken hold, and the anger that many Canadians feel about the incompetence of the federal Liberals to detect either wasteful spending or the 'sponsorship' fraud by some government workers, plus the anger of many Ontarians about the new Provincial Liberal government's reneging on promises to avoid tax increases, has led another 8% of Canadians to vow not to re-elect them. This 8% swing has been predominantly older men in Ontario, who seem unwilling to believe that the Conservatives are as right-wing as Liberal Prime Minister Martin has portrayed them, and younger people, whose support for the Green Party has significantly increased.

The province-by-province projections now stand as follows -- 155 of the 308 seats are needed for a majority:


Liberal
Conservative
NDP
Green
Bloc Québecois
West - 95 seats
27 (28%)
55 (40%)
13 (22%)
0 (10%)

Ontario - 106
48 (35%)
51 (38%)
7 (21%)
0 (6%)

Québec - 75
15 (30%)
0 (10%)
0 (8%)
0 (2%)
60 (50%)
Atlantic - 32
17 (36%)
11 (32%)
4 (26%)
0 (6%)

Total - 308 seats
107 (32%)
117 (33%)
24 (18%)
0 (6%)
60 (11%)

Next week we'll hear the all-important leader debates, but they are likely to change nothing. The Conservatives are muzzling their own right-wing extremists, who are virulently anti-abortion, gay-hating, anti-gun control, anti-immigation, pro closer ties with the US, anti-Kyoto accord, and militaristic (Stephen Harper, the new Conservative leader and former head of a Western separatist party, wanted Canada in the Iraq war). The Conservative strategists are determined to portray Harper as a moderate, despite the fact that he is on record as having taken right-wing positions on many social, economic and environmental position. If this sounds a lot like Dubya, and the spin doctor white-washing of his extremism reminds you of 'compassionate conservatism' in 2000, it should, because the tactics are the same -- say anything to get elected, and then trot out the real agenda of the people who paid for the campaign.

But it's even more frightening than that. Small-c conservatives make up only 30% of Canadians, and the capital-c Conservatives are already above that point, with some of their voters coming from angry liberals. But if the figures above don't change, the Conservatives will get 38% of the seats with 33% of the vote. And the Bloc Québecois, the Québec separatist party that runs candidates only in that province, will get 19% of the seats with only 11% of the vote. Add them together and you get a distortion almost identical to what happened in the US in 2000, where Dubya 'won' with only 46% of the popular vote. If the Conservatives and Bloc combine their seats in a strange-bedfellows anti-federalist coalition, they'll have 57% of the seats with only 44% of the votes, while liberal-centrist parties will have only 43% of the seats, even though they will have received 56% of the votes. There is no other coalition that would have enough seats to form a government.

Problem is, this coalition won't hold for more than a few months. The Bloc is a left-wing, Francophone party, liberal on all social, economic and environmental issues. The Conservatives have diametrically-opposed views on every issue but one: their dislike of federalism. The cost of Bloc support would be to grant Québec limited sovereignty, kind of 'independence light'. The very idea of this is repugnant to core Western Conservatives. And the Bloc has already said that it would not support any Conservative government that tried to recriminalize abortion, and has made it clear that it would not tolerate abandoning Canada's support for the Kyoto Accord, or anti-gay laws, both of which are bedrock principles of the Western Conservatives. And Ontario Conservatives would quickly cross the floor to the Liberals to save their political skin if the Bush-style right-wing social agenda of the Western Conservatives was trotted out.

The role of the media in the final two weeks of the campaign will be interesting. Conservative media are likely to present Harper as the 'heir-apparent', the surprise winner and a fresh new face for Canada. Liberal media will be torn over whether to simply relate the campaign stories as they are spun out by the parties, or to go behind the scenes and surface what Harper has said, in writing, in past, on many issues he is now trying to paint himself as moderate on. The current Liberal campaign has attempted to do just that, but it has backfired, being portrayed as negative 'US-style' electioneering, sour grapes or desperation politics, so the liberal media could be subject to similar admonishments if they get proccupied with the 'secret agenda' of the Conservatives. But media being what they are, expect Harper, the new frontrunner, to face increasing heat over unanswered questions from his decidedly non-moderate past. Not to mention some of his decidedly wacko neophyte candidates.

So what do I think will happen? The Conservatives will win a small plurality, and have to either form a coalition with, or try to manage with the tacit support of, the Bloc Québecois. Paul Martin will resign right after the election, and the Liberals will choose a new leader not tainted by the recent scandals. The Conservatives will start to self-destruct right after the election, with hard-line right-wingers expelled or resigning, and moderates crossing the floor to the Liberals, especially after it selects a new leader. The new government will last 3-6 months, accomplish nothing, and fall when the Bloc Québecois withdraws its support. Then we'll have another election, and perhaps even a third, until the 70% of Canadians with moderate-to-liberal social and political views get a government they can live with.

Ontario and Québec have 60% of Canada's population, and no party has ever successfully governed the country without healthy support from both provinces. Stephen Harper is on record as opposing bilingualism, although he is now waffling on what his precise position on this is, which makes him unelectable in Québec. And his previously stated positions on many other issues will, if they become widely known, make him unelectable anywhere. It's going to be messy, and stay that way for quite awhile. And if the Martin Liberals hadn't been so politically stupid, it could all have been avoided.

Cartoon by Tom Cheney -- buy his stuff at Cartoon Bank.

OUR PERVERSE
PLEASURE IN OTHERS' MISFORTUNE


OUR PERVERSE
PLEASURE IN OTHERS' MISFORTUNE
12/29/2004 06:17 PM
theclimb
S
chadenfreude. It's a German word that literally means "joy from damage". It refers to the perverse pleasure we take in observing or hearing about the misfortunes of others. That pleasure seems to be enhanced by talking about it with others -- gossip would be empty without it, and when we hear about a disaster, like the horrendous catastrophe of this week's Asian earthquake and tsunami, we have an almost instinctive need to share the news with others.

If you don't think it's pleasure we feel in these situations, here are some more examples:
  • Our reaction when we hear that another couple's marriage has broken up, or suffered a sex scandal
  • Our reaction when someone we know (but don't love) loses their job, or their life savings
  • Our reaction when we hear of an unexpected death or tragedy outside our immediate circle of family or friends
  • The pleasure we get from comedy that recounts the protagonists' stupid, catastrophic or pathetic behaviours and their consequences
  • The satisfaction we get from hearing about criminals' dire, even cruel, punishments
  • Reality TV
  • The joy many felt at the bursting of the dot-com bubble
  • Our media-pandered fascination with celebrities' scandals
  • The pleasure we get from winning a game or sporting event, that we wouldn't get if there wasn't a 'loser'
  • The popularity of movies that dwell on, and exploit war, suffering, and horror
There's even a book, When Bad Things Happen to Other People, on the subject, written by John Portmann. Portmann believes Schadenfreude is harmless, a natural and healthy stress-buster. At the other extreme, the sublime ecstasy that psychopaths feel when their lies and bullying and manipulation cause misery to their victims is extremely harmful, and perrhaps addictive.  How dangerous and unhealthy is this all-too-human proclivity? And why do we feel this way at all? Is it because others' misfortune, in a world of scarcity and competition, vindicates our own behaviours and decisions, increases our own stock and our self-perceived likelihood of success, or at least survival?

Writer Valerie Weaver-Zercher
suggests< /a> what may be behind this is our dual need to see others as needy (which plays to the nurturer in us) and to see ourselves as not needy (which plays to our egos, and our feelings of learned helplessness). She calls this the "head-shaking syndrome". Some writers say it reflects a subliminal (or not-so-subliminal) desire for revenge against those we feel have wronged us or shown us up in some way.

I confess I'm like Calvin's Dad in the cartoon above: I don't get it, though I recognize it seems to drive an enormous amount of human behaviour and activity. I loathe reality TV and the plethora of programs and films that wallow in human misery and suffering. I love games, and play to win, but afterwards I feel badly for the 'losers', and it is the social and learning aspect, rather than the competitive aspect, that I enjoy: I would get as much, if not more, pleasure from a collaborative social activity that everybody 'won'. I find comedy that ridicules and humiliates people to be pathetic and exploitative, not funny at all. And although I have been predicting a growing cascade of social, economic and ecological catastrophes, I will get no pleasure from being proved correct. I change the station when news comes on about disasters, crimes, and the undoing of celebrities: If there's nothing I can do about these things, to me it seems merely morbid to dwell on them. Can someone please explain to me how these things are pleasurable, or even cathartic? What perverse joy can anyone get watching people eat worms, women screaming at the loss of a child, athletes and film stars humiliated, losers of card games groan, or stand-ups reveal grotesque embarrassments from their past? Taking joy from these things seems deranged to me, evidence of great mental distress and anguish, or at best a bizarre, reality-detached ennui.

But I will admit to a strange desire to spread bad news about others (though only if I know the news to be true -- I don't traffic in rumour). I don't know what's behind this. Maybe it's my natural pessimism, an opportunity to say 'I told you so', to warn people: If John and Mary are breaking up, we should all be alarmed -- maybe all marriages are doomed, or maybe monogamy itself is unnatural, unsustainable, and Tom Robbins' warning of the staggering difficulty of 'making love last' needs to be heeded. If Frank lost his job, perhaps this shows that all business hierarchies are fragile, uncaring, poised to destroy the lives of those who rely on them and allow them to continue. If Bill took his own life, maybe he's the brave one, the harbinger of the future, the canary in the coal mineshaft. I love to learn, to attach meaning to things, and bad news seems to call out for explanation, for interpretation of meaning. Why would our amazing planet be designed to suddenly shudder, and drown millions of her creatures in a tidal wave of misery, and destroy the joyous lives of tens of millions of others? What possible reason could there be for such cruelty, such devastation? Someone, please, stop telling me how many died, and instead tell me why?

MAKING
POLITICS POLITICALLY CORRECT


MAKING
POLITICS POLITICALLY CORRECT
08/23/2004 02:34 PM
mankoff
We went out for a delicious dinner last night at a wonderful, and completely packed, restaurant in downtown Toronto (it's called Mildred Pierce, for those who live in the area), and spent some of the time unobtrusively eavesdropping on the conversations at nearby tables. The discussions, much like the one at our own table, vacillated between the very personal (who's dating who, personal anecdotes) and the impersonal (entertainment, sports, weather). But not a single word was uttered about politics: Nothing about Canadian politics (collapse of the right), Ontario politics (health care and education strikes threatened), Toronto politics ('new deal' for cities in peril), US politics (Bush/Kerry), or international politics (Iraq etc.) Not a word. This was a Sunday night so there were no obvious business reasons for steering away from the subject. It just never came up. And it occurred to me that at our annual neighbourhood BBQ on Saturday night no one talked about politics either. Is politics just too boring in Canada or has it become tacitly PI to talk about them, because of the political polarization that seems to be happening everywhere? Is the left-right gulf getting too wide to even try to broach in 'decent conversation'?

I appreciate that there is less urgency about politics here in Canada than there is in the US, at least. The election here is over. And I'm told that at least 40% of Americans know personally at least one person on active duty in the Mideast, and that, I would expect, would probably make it a more likely topic of conversation. But some of my American readers tell me that talking about politics in face-to-face conversations is just too uncomfortable for them these days as well -- too likely to lead to arguments. So outside of political rallies and other meetings of like minds they don't talk about it much either.

What does this mean? First, it means the end of true political debate -- I don't mean those phony, scripted events where politicians roll out their rehearsed one-liners, I'm talking about articulate exchange of political views and information between real people. If you don't talk with others about politics, how do you form your viewpoints and where do you get your information? From attack ads? I don't think so -- maybe I'm naive but I don't think they work; most people know when they're being manipulated, and won't fall for it. From radio talk shows or editorials or blogs? Most of them are only for people who have already formed an unwavering political opinion on everything, and are merely looking for reassurance and justification for their belief. From television news and the print media? There isn't enough information content in the sound bites and newswire rehashes in most of them to allow an informed decision or point of view on anything.

It seems to me that, on almost any political issue, 50% or more of the population is completely disengaged -- even if they care, they don't think anything they do or say or feel will have any impact, so they can't be bothered to voice, or sometimes even form, any strong opinion on it. And the rest are in two, polarized camps, each believing that the other is irrational or immoral or misinformed, hopelessly so, so that meaningful discussion with the 'other side' or with the disengaged majority is impossible or fruitless. So except for the one-way palaver from the political flaks and political advertisers and partisans and oversimplifying mainstream media, there is no political information flow. And there is no discourse, no exchange of ideas or views, no balanced presentation of opposing views, no true political conversation. Because what purpose would it serve?

I see an astonishing paradox in modern society -- in an era with unprecedented access to information, most people are ignorant of even the basic facts on most political issues, from the connection between 9/11 and Saddam, to the causes and implications of global warming, to the political situation in Sudan and Venezuela and Chechnya< /a> (not to mention parts of the world less in the news), to the numerous ecological and humanitarian crises that everyone from the Union of Concerned Scientists to Amnesty International is shouting about. Why are so many so ignorant? I think because they choose to be uninformed. Why? Perhaps either because they they can't relate to the issue, or because they don't think there's any point in getting stressed about issues they feel they can do nothing personally about. So you end up in a vicious cycle: The less people know about a subject, the less inclined it is to come up in conversation, so the media conclude there is no interest in it, so they don't cover it, so people know even less. And if they do know about it but feel helpless or disinclined to do anything about it, they don't share their knowledge with others, and eventually with enough indifference the situation gets worse and the solutions become more intractable so people feel even more helpless and disinclined to try to do anything. Political disengagement is infectious, and it's reached epidemic proportions, especially among the young.

All of this supports Richard Manning's argument in Against the Grain that politics was and is designed to protect and entrench the status quo. As a result, nothing pleases those with power and money and influence more than massive political indifference and disengagement -- what Gene McCarthy in the 1960s during the fight against the Vietnam War called 'acedia' -- a Greek word meaning spiritual torpor, lack of care, apathy and inactivity in the practice of virtue. Unlike the 1960's, the numbers of politically disengaged is inversely proportional to the age bracket -- it is the young who I love so much and have such great hopes for who are least engaged in the political process, who infect each other with their indifference to global issues. But I don't think it's that they don't care. Most of the young people I know are overwhelmed and intimidated by how much those of us who are politically active know about global issues. My teenage granddaughter has read my blog, but says she "doesn't understand it". The young focus their energies and their passion instead on issues in their own networks, local things, things that they can do something about.

We need to show them the way to do more. We, who have been in the streets, need to reach out to the young and not-so-young who have given up on the political process (often before they began), and stop drowning them in facts and laying guilt trips on them and filling them up with bad news and instead:
  • Ask them what's important to them (open-ended questions with no preconception of the answers) and listen to their answers,
  • Tell them stories about how the political process has brought about important and positive change,
  • Teach them how the system works, in the context of how it could work to deal with the issues they said were important to them, and
  • Encourage them, starting with something small, to make the system work for them.
If we do that, if we can re-engage even a fifth of the people who never vote, who never read about politics or world affairs, who have lived their entire lives in political passivity, we will have started a revolution. Not only will they infect other disengaged peers with the zen of political activism, they will shake the diehard leftists and diehard right-wingers as well, because all of a sudden these new political activists will be up for grabs by whichever group that makes the most articulate, balanced and credible arguments, not by the blowhards who preach to the choir. And these new political activists will, on many issues, hold the political balance of power.

The real 'swing voters' are the ones who have never voted before and don't expect to vote in future. Rhetoric won't bring them to the polls. If we can 'activate' them, then conversations about politics will no longer be politically incorrect, and political activism will spread like a virus. As those who fought against the Vietnam War can tell you, political activism is as infectious as political apathy. The defenders of the status quo will be shaking in their boots.

And then the revolution we all need, the revolution to save the world, can begin.

Cartoon by the incomparable Robert Mankoff (from the New Yorker, of course)

AUSSIE
BREAKTHROUGH ON SOLAR ENERGY?


AUSSIE
BREAKTHROUGH ON SOLAR ENERGY?
08/27/2004 02:02 PM
Cstate hydrogen
Last year I waded through Jeremy Rifkin's The Hydrogen Economy and wrote a blog post that explained what's promising about hydrogen as a fuel, and its two major drawbacks. I used two charts, reproduced here, to explain how it works and what's holding it back.

The chart above shows the energy economy we have today. Red boxes are non-renewable, polluting and environmentally damaging energy sources and green ones are clean and renewable. Whether we use hydrocarbon fuels or electricity to light, heat and cool our homes, it's likely that non-renewable, damaging sources are producing it. Our cars likewise burn fossil fuels, and although hybrid cars are certainly an improvement, they still depend on fossil fuels to create ('reform') the hydrogen that the fuel cells convert into electricity.

The chart below shows the energy economy in twenty years, if we can solve the two major dilemmas of the hydrogen economy.
FState hydrogen
Under this scenario, hydrocarbons are replaced by solar, wind and other renewable, non-polluting, non-damaging energy sources. The central hydro utility is replaced by a local energy co-op, which produces energy for your community from its own solar collectors, wind turbines etc. The compressed hydrogen used to power next-generation pure hydrogen vehicles is produced from some of this electricity, and distributed through local service stations. The excess electricity produced by these cars can be used to provide light, heat and cooling to the home or sold back to the local energy co-op. The cars themselves will have no engine, no pedals, clutch or gearshift, make no noise and produce no harmful exhaust. The entire process will require no burning, no pollution, and no grid at the mercy of multinationals and sheikhs.

What are the two catches? First, the current cost of electricity produced from non-renewable sources is very expensive, and the process is cumbersome and not yet terribly efficient. Even more problematic is the $100 billion cost of building the infrastructure to generate, distribute and store the electricity and hydrogen, obsolescing a comparable amount of existing energy infrastructure, and probably causing some consternation to and resistance from the owners of that infrastructure.

titanium cellYesterday the University of New South Wales predicted that by 2010 a new generation of photovoltaic 'harvesters' based on titanium dioxide ceramics will both collect solar energy and use that energy to produce compressed hydrogen from water. A 10m square array, such as that depicted at right, mounted on just half the households in a sun-rich country like Australia, could produce the entire country's energy.

This would allow an even more distributed, decentralized model than that depicted above: With each household able to produce its own energy, the local energy co-op might be nothing more than a virtual market, and the need for local service stations selling or even producing compressed hydrogen would be obviated. We'd all change from consuming to producing energy.

The university has even higher hopes for the titanium dioxide technology behind this advance: They believe it will allow innovations in other areas such as "water purification, anti-viral and bacteriacidal coatings on hospital clothing and surfaces, self-cleaning glasses, and anti-pollution surfaces on buildings and roads".

Anyone know anything about titanium? I know it's a metal, but is it plentiful and easy and clean to extract? Is it recyclable? Durable? Toxic in landfill sites? I sense a bit of grandstanding and breast-beating by UNSW here. Is there another catch they're not telling us about?

DARFUR: A
COCKTAIL OF SUFFERING AND
GENOCIDE


DARFUR: A
COCKTAIL OF SUFFERING AND
GENOCIDE
08/27/2004 02:02 PM
darfur
Sudan has a great deal in common with Afghanistan. Both countries are horrendously overpopulated relative to their carrying capacity, and have exploding populations -- Sudan's population of 40 million people is doubling every 25 years and that rate is not slowing, raising the spectre of its population topping a half billion by the end of the century. Both Sudan and Afghanistan are also desperately poor, with only 7% of Sudan's land and 12% of Afghanistan's capable of supporting agriculture. What's worse, over-farming, over-grazing and global warming are producing chronic drought, which in turn causes massive famine and desertification. Encroaching desert has already halved arable land in Afghanistan since 1975, and the same phenomenon  is happening in Sudan. Both countries have long legacies of brutal and repressive dictatorships, foreign occupation, savage and interminable civil war, lawlessness, genocide and, in the case of Sudan, slavery. And both countries provided safe harbour for Osama bin Laden.

What is happening now in the Western Sudanese provinces of Darfur is merely a continuation of a centuries-long legacy of misery, poverty, conflict and violence. In this week's New Yorker Pulitzer Prize winner Samantha Power reports from Darfur, with first-person interviews with government and rebel leaders and the victims caught eternally in the middle. Some of the information she reveals in telling the agonizing story of this impoverished and hopeless nation:
  • The military dictatorship that governs Sudan is desperate to end US sanctions so that its newly-found oil, which came onstream only five years ago, can start generating revenue for the bankrupt nation, so much so that it agreed to end its long and savage civil war against the rebels in Southern Sudan (where the oil is), and exempt Sudanese Christians from Sharia law.
  • That Southern war has cost two million lives, and the Bush Administration was active in brokering the peace for three reasons: (a) many of the casualties were Christians, which led to pressure from American evangelical churches, a bastion of Bush support, for US action, (b) the US would have access to an additional source of much-needed oil and (c) peace would have allowed Bush, in an election year, to portray himself as a peacemaker as well as a 'war president'.
  • Plans to announce the peace were undone when th