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It’s well-known that we live in the Information Age. Once upon a time it was the power of industry—great pieces of equipment operated by countless laborers working countless hours. As economies of scale developed, so did the assembly line and the furtherance of the manufacturing-based economy. As the industry-based landscape matured, the economy advanced to the point where specialization became increasingly important. As the twentieth century closed we had harnessed the power of the Internet. Combined with all other elements of the day our manufacturing-based society in the United States and other locales converted into an information-based economy.

Industry-based economics seemed to be a stepping stone to where we, in the west, are now; just as other places in the world go through this phase of their development we are shifting away from such and into a paradigm based around information, services, and facilitation. This information-based economy is revolutionizing old models and paradigms and changing the way that the various agents in each component of the economy interact with one another.

For the consumer part of this is that the Internet has had a tendency to democratize everything. eBay, with its online auctions, and Wal-Mart, with its harnessing of technology to make its business processes more efficient have collectively acted as the “invisible hand” of economics and made marketplaces more efficient: There is arguably not much profit to be made from these two businesses short of selling in volume. Wal-Mart posted a net profit margin of 3.6 percent in 2005, down to 3.2 percent in 2007. eBay has epitomized the low- or zero-profit margin on the Internet: In an online sense I firmly believe that eBay is as efficient as a market gets.

Each of us goes through our days selling our time to other people: For most of us that means selling our time for a wage or a salary, and maybe some benefits. Whether that means flipping burgers at the local fast food restaurant or bagging groceries for minimum wage or being a vice president with a bank, you are effectively selling your time to your employer for a price which you and the market will handle. In essence, you are a product which you must develop, market, and sell to employers seeking you and your product. This is simply a new way at looking at an old paradigm, though. I’ll breach that topic at another time. For now, however…

Imagine an extension of the above premise with the basis that you are a product such that you, instead of selling your services to your employer, could sell the services you provide to your employer directly to the customers which you already serve. Cut out the “middle man,” and eliminate inefficiencies at that level. Instead of being tied down to the policies, protocols, bureaucracies, and whatever else you don’t like about the time which you’re selling to your employer, you would be your own boss. You would be in control of your own destiny in the marketplace. You wouldn’t have to worry about performance reviews or a supervisor validating you: The marketplace which you serve would instead be the entity which validates your abilities and efforts.

There are a few, however, which can’t fit into this model. This does not mean, however, that you can’t work within this new paradigm, however.

Each person has not only the “hard” job skills and the “soft” ones they sell to their employer: They also have skills which they apply to hobbies or other “extracurricular” activities that occupy the time which they are not working for their employer.

This is where the famous adage “do what you love and find a way to get paid for it” enters. This is the ideal route. Find a way to do that which you love and make an occupation from it. Obfuscate the traditional definition of “work” so that it seems like play to you, particularly if you are that type of person who differentiates between “work” and “play.”

A lot of these hobbies-turn-jobs can be done as a sole proprietorship: Being in business for yourself, using yourself as the sole business entity. Although it is less difficult to deal with than its more sophisticated brethren, it is also just that: Less sophisticated. Not offering any liability protection is the greatest disadvantage of this form of business organization.

The next higher form of business organization is the partnership. There are multiple types of partnerships, but the key factor in choosing a partnership is that it offers a level of protection against liability inasmuch as it spreads liability amongst a group of partners. General partnerships, limited liability partnerships, and limited liability companies are the fundamental organizational forms which they take. For more, read up on them!

Next up are the corporations. The most sophisticated form of business organization; it is also the most powerful. A corporation is considered its own separate legal entity: In other words local, state, and federal governments consider it to be its own person. As such all liability taken on by a corporation is the responsibility of the corporation. Each “co-owner” or shareholder of a corporation is only liable for as much as they invest in the corporation. Put another way if you invest $1000 into a corporation and the corporation completely tanks, you only lose your $1000. The “classic” corporation is the “C-Corporation:” This organization type is typically unlimited to the amount of shareholders it can take on but can be taxed as a corporate entity (corporations are taxed as such in U.S. states; not at individual rates) and the shareholder is responsible for their financial gains from their investment in the corporation as well. Corporations are wonderful things for making money; as Ambrose Pierce humorously defined a corporation: “Corporation, [noun]. An ingenious device for obtaining individual profit without individual responsibility."

The other corporate entity is the “S-Corporation.” While some consider it a “glorified partnership,” the government still considers it a type of corporation. The name is derived from the portion of the Internal Revenue Service’s tax code that allows for the existence of this entity, “Subchapter S Corporations.” Essentially, the Subchapter S style of corporation allows for tax liability to be “passed through” the corporate veil such that each shareholder is responsible for paying them: While a regular C Corporation is double taxed (corporate plus individual), the S Corporation doesn’t pay corporate taxes, instead the individual shareholders are responsible for paying taxes on their individual investments in the enterprise. Subchapter S Corporations are typically corporations that are originally formed as C Corporations in their respective states, then paperwork is filed with the IRS in order to gain recognition as an S Corporation. An example of an S Corporation? My own.

Why such the long blog post? Because, at this time of year it seems that everyone is thinking about what moves to make in the year ahead: The obligatory New Year’s Resolution. Why not, in the upcoming year, figure out how you can break the “tyranny of the 9 to 5,” get away from the “dungeon of the cubicle” and figure out how you can become one of the successful string of businesses that drive innovation and contribute to society? Maybe it is for you, and maybe it is not for you. I strongly urge you to consider, however, this option.

While these steps take a skill set that is general and diverse in nature, one of my string of topics in the forthcoming year will be to develop the skill set required for a business owner, small business operator, or even CEO of one of the large multi-nationals. However, if you’d like to request a topic, please feel free to email me a question, your suggestion for a topic, or your feedback at this address!

The War of Business

When most people think about war, they think of it in the classic black-and-white movie paradigm: “The waging of armed conflict against an enemy.” The classic symmetric conflict whereas one force meets with another on a field of battle and fights one another to submission. Whereas the stakes in this sort of combat are high, so are the stakes in business. In this enterprise, however, the definition of warfare becomes less violent in nature: “An active struggle between competing entities.”

“In war the will is directed at an animate object that reacts.”
—Karl von Clauswitz, Prussian General

Why not look upon one’s business interests as if they were a war? The scope of war is one such that there are the binary conditions of success or defeat. While there isn’t loss of life, there is a competitive spirit amongst entities on the battlefield and gains and losses to be realized in accordance with the various dynamics on the battlefield.

For some reason, I’ve always had some military sense about me. Although my father works for a telephone cooperative by day and a farmer-rancher at all other times; my brother a coal-mining plant operator several hours a week and a farmer-rancher at all other times; my mother also works in the fold, having worked a variety of other jobs throughout her life. Few others served in the military in my family since my great-great grandfather Mathias Hetland, having served as an enlisted man in the Spanish American War. Regardless of this lack of military involvement, I would always (in the back of my mind) assign military ranks to those in jobs around me, commensurate with their role in that job: My father, The General or Adimiral; my mother, the same. My brother, raising to the rank of a die-hard sergeant able to “just make things work.” I looked at myself as a junior enlisted troop, working his way up through the hierarchy and into the commissioned officer ranks.

Several years later I would find myself working with Cingular Wireless (now part of the new AT&T) as a receivables management agent in a call center environment. I was quick to place the label of “infantry—“the lightly-armed foot soldiers who make up the largest portion of an army onto my other colleagues “on the floor” as standard-issue call center representatives who were taking collections calls. This occupation was dreadful. I quickly learned that, while many people that call into collections of a wireless phone call center may be like you and I, there are enough that fit a pattern of behavior that most grandmothers would find deplorable. I determined that I would rise beyond the thankless existence on the phones and do something more.

I promptly learned of a separate team in the call center that performed duties over and above the remainder of the call center. The “Resolutions Support Desk,” affectionately known as “Rez” by the inhabitants there, was more than just the stock infantry of the call center: They were the elite “special forces” of the call center: “Special Forces or special operations forces, is a term used to describe relatively small military units raised and trained for reconnaissance, unconventional warfare and special operations. These exclusive units rely on stealth, speed, self reliance and close teamwork, and highly specialized equipment.” Resolutions was a the size of a single team which supported itself and the remaining 250-300 call center agents and, at times, agents at other call centers. Although they could take standard calls that the rank-and-file representative would take, they stood out as subject matter experts and, therefore, about half their time was spent offering advice on policies, procedures, systems, and other technical issues to representatives. The rest of their time on the phones was spent as supervisors de-escalating calls from customers who were otherwise dissatisfied with the service that they were getting. In order to do so, they were trained and experienced in how to read people and, as a result, how to de-escalate them. Resolutions Support Consultants could work in teams of any skill level, size, or purpose, as well as by themselves. The tools that they used were those that the other call center agents used, along with specialized access and other specific programs—all of which they needed to be subject matter experts.

I would become the quickest customer service/receivables management agent to be promoted from “the floor” into the Resolutions Department. What happened for after I got there is a different story for a different time.

Just as different job roles can be associated with different roles in a military environment, a chief executive standing in a board room employs resources just as a general on a battlefield would; instructing his or her commanders on their vision and overseeing the operation from the perspective of the top officer of the organization from beginning to end.

In the end, it is not too difficult to fathom the war that business can be.

The Corporate Soldier

“Live to win, dare to fail.”
—Metallica, “Carpe Diem, Baby”

Business: The glorious manifestation of a group of people organized together to conduct commerce. Within any such organization lies hierarchies of line personnel, support staff, and the managers at all levels which add value to the venture at every step along the way. A well-functioning and efficient organization possesses well-trained individuals throughout the strata of a company. Organizations—non-profits, governmental organizations, and business concerns from the smallest “Ma and Pop” sorts through the largest sprawling multi-national corporate conglomerates—are clustered within this definition of “corporate.”

Wikipedia defines soldier as the following:

“A soldier is a person who has enlisted with, or has been conscripted into, the armed forces of a sovereign country and has undergone training and received equipment to defend that country or its interests. In most countries, the term soldier is limited to such people who serve in the land branch of the armed services (usually known as the army). Armies are strictly hierarchical societies, and within them, groups of soldiers are usually divided into military units of some kind.”

The key points here are that soldiers are professionally trained, equipped, and that they work in groups of all sizes towards the end of an organization’s interests. While the hierarchical structures of organizations have evolved, certain universal truths are true of successful individuals within their respective successful organizations.

“Organization doesn't really accomplish anything. Plans don't accomplish anything, either. Theories of management don't much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.”
—General Colin Powell, U.S. Army (Retired)

All of the posts in this forum have been to the end of developing the premise and paradigm for this Corporate Soldier: A man or woman capable of leading, in whichever capacity or level they serve in the organization, properly trained and equipped to do serve the interests of the organization by organizing resources and doing commerce.

“Veni, Vidi, Vici (I came, I saw, I conquered).”
—Julius Caesar, said in an address to the Roman Senate regarding his victory at the Battle of Zela in 47 B.C.

The Corporate Soldier is not limited to non-managerial personnel, either. In the military, especially in units with a reasonable combat probability, it is firmly implanted into the minds of each troop that it is necessary to know and be able to serve in the position that is two rungs higher on the hierarchical ladder than one’s own. Nothing changes more constantly, unpredictably, and forcibly as a combat environment: Because of this, soldiers know that they must reasonably be able to serve in multiple capacities within their area of influence. Just as a rank-and-file worker must be ready to take on the job duties of their supervisor or one of their colleagues, the supervisor or manager must be able to take on the roles of his or her colleagues or subordinates.

Furthermore, everyone—Everyone—is a leader in an organization. The typical leadership paradigm within many organizations is those in supervisory, managerial, executive, or select staff positions. The modern organization, the new paradigm in the information age, is to democratize leadership: Accountability and responsibility at all levels, in all roles, within the organization. Decentralization further increases effectiveness, efficiency, and creates a more direct link between the needs of the situation with the capabilities of the portion of the organization handling it.

So, I invite you to read on and learn how to be one of today’s, one of tomorrow’s, corporate soldiers—leaders that are around to enhance, shape, and add value to the world around them.

Sales and Marketing in Everyday Life

Leaders, in my worldview, are those that practice the same ideals and principles in and out of the boardroom. They also practice economies of scope in such a fashion as to gain efficiencies in their daily lives:

“[Economics of scope is] the condition where fewer inputs such as effort and time are needed to produce a greater variety of outputs. Greater business value is achieved by jointly producing different outputs. Producing each output independently fails to leverage commonalities that affect costs. Economies of scope occur when it is less costly to combine two or more products in one production system than to produce them separately.”

To this end, I often find that applying business principles to daily life. Sales and marketing is a great field to derive principles in showing the people in your life the value which you have in the world around you. These principles can supplement your deeds in showing others perceived value.

1. Offer of yourself. Make promises, and be certain to keep them. By offering of yourself, you open yourself up to be offered to, as it is said in The Bible: ““Give, and it shall be given to you. For whatever measure you deal out to others, it will be dealt to you in return.”

2. Seek first to understand. A “Covey Classic,” this principle goes to the emphatic understanding of what you’re being told. Instead of giving someone your autobiography then seeking to bring them to your point of view, try looking at the world from their point of view by thoroughly seeing to their concerns then seeking for your own to be understood. This will help assure that a working communication is developed.

“How can you expect a man who's warm to understand one who's cold?”
—Aleksandr I. Solzhenitsyn

3. Adapt your message. Each person sees the world how they want to see it, through myriad filters and perceptions, in accordance with their worldview. Because of this, you need to be able to speak in terms of the other person’s perceptions, try to see the world through their eyes and adapt what you are saying to how they see the world. Just as a typical basketball player wouldn’t much understand the technical jargon of physics, people will have a tendency of listening with intent to respond rather than listening to absorb if we choose the wrong way to send our message.

“The wise adapt themselves to circumstances, as water moulds itself to the pitcher.”

—Chinese Proverb

4. You are a product providing a service to the world; make yourself great. People look up to others who with traits that they hold in high regard; while the specifics will vary between individuals, there are culturally-held and universally held traits that can be displayed which can influence others to see you as great.

5. Up-sell. One of the times that I was in college I was not your typical college student, just traipsing from class to class, taking tests, and moving on. Instead, I decided to go above and beyond (something forged from my military experience): This became my trademark. Everything that I would do, I would take it one step further, going above and beyond a person’s expectations of me in that situation.

6. Closing. When you’ve gone through the steps and wish to “close the deal” on influencing someone to do something, it is most effective to close in a fashion that matches the situation’s requirements most closely.

7. Audience targeting. Although there are supposedly people out there that can do it, why would you want to sell ice to an Eskimo? You end up putting more effort into something to an audience that doesn’t need it. Why would you offer something to someone that doesn’t need it?

“The odds of hitting your target go up dramatically when you aim at it.”
—Mal Pancoast

8. Be persistent about being persistent. Everyone does things that fail, just as we all do things that occasionally work. History has shown over and over again that the victory doesn’t necessarily go to the superiorly skilled or equipped, but rather the most persistent.

“Success is almost totally dependent upon drive and persistence. The extra energy required to make another effort or try another approach is the secret of winning.”
—Denis Waitley

9. You, the Brand. The image which you present to the world is your brand. Everything you put into yourself, your actions, and the world around you is noticed. If you make due on your word, people will add more repute to your brand; just as the opposite is true.

“Your premium brand had better be delivering something special, or it's not going to get the business.”
—Warren Buffett

Coming Around Again

“So good on paper, so romantic, but so bewildering…
…I know nothing stays the same
But if you're willing to play the game
It's coming around again.”

Carly Simon, “Coming Around Again”

My mantra has been to always “go forward,” no matter what else is going on personally or with an organization. Bureaucracy, management theories, and whatever else aside, one should always be moving in a direction towards the goal. However, sometimes one can inadvertently lose sight of their progress towards this goal.

Comfort is that thing which dulls optimum effectiveness. If you get too comfortable, you’re prone to laziness. You’re prone to foolishness. A lesson from the military: When you step outside your comfort zone, only then can you experience true growth, whatever venue in your life that might be. “It builds character,” is what people say of those things that are generally unpleasant: This is why. Character is defined as someone with good repute. Perhaps doing tasks that others see as unseemly give you a good reputation? I personally think the direct meaning behind this word, in this case, isn’t necessarily…correct. Rather good reputation is built around those individuals that have shown effectiveness and efficiency in the completion of their tasks. Performing above the call of duty offers a qualitative essence to an easily quantifiable task. In other words, people notice extra effort: People notice moving forward.

Everything in life can be deduced to a game. Not the manipulative sort that will inevitably come to many a mind, but a game in the auspices of economics: An interaction between multiple intelligent agents with their own agendas, motives, and rationales. Outcomes and scenarios can reasonably be deduced with previously known, currently gathered, and assumed information regarding the other intelligent agents in said game. With this methodology one can often control their own actions to control the desired outcome of the situation.

Mind you, this is not manipulation: It is control. The difference is intent. Manipulation is a principle of the unprincipled, whereas control is a principle of the science of management. One is maladaptive while the other is required in business.

People generally resist change. People will find their optimal state of being and stay there. Sometimes this means being ahead of the curve, sometimes this means complacency. It is never too late to become the person that you want to become: If the benefit of the potential reward outweighs the discomfort that you have for putting the necessary effort and energy into the scenario, then you will find a way to make it happen. Internal motivation can overcome all.

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13 April 2007: Here I Go Again

Though I keep searching for an answer, I never seem to find what I’m looking for
Oh lord, I pray: You give me strength to carry on,
‘Cause I know what it means to walk along the lonely street of dreams.”

--Whitesnake, “Here I Go Again”

Each of my passions are merely an outgrowth from my first which came to me at a very young age; probably since the third grade, if not younger. The search for wisdom: Answers and truth.

In physics, the “holy grail” has been listed as the search for a grand unified theory, leading to a theory of everything. See, in physics there are four fundamental forces of nature: Electromagnetism, gravity, and the strong and weak nuclear forces. It is often said that this grand unification theory will be easy to recognize because it will, maybe, be about an inch long and mathematically elegant: Simplicity, elegance, boldness. These are the tenets of what wisdom truly is.

And so, I find myself along the path to seek answers and meaningfully relay them to the world while supporting my own needs. Along this journey of discovery, I’ve done much to discover myself and the ways the world works around me. Life is rarely a simple organism happening in small bubbles: Rather it is a large and complex system with multiple forces interacting on one another. We can, however, apply Galilean methods and only analyze discrete systems with little entropy involved. We can pick apart these systems and boil it down to a simple set of causal forces to determine how each element—and we—interact with the rest of the system.

However, I digress.

Business is the organization of resources to do commerce. Through commerce and open markets, great things can be had: Innovation, social change, and moving civilization forward. Necessity begets invention, which often leads to it being developed and marketed, especially in a free enterprise system. Take electricity, for example: Candles had their limitations. Two scientists, Edison and Tesla, vied for the top spot of whether to supply the civilized world with alternating or direct current. In the end, Edison won with his AC power, but DC power can still be found in many applications. They found a simple and elegant solution, applied the economic principle of economies of scale, and made it so that only the rich burned candles.

I write this on the eve of embarking fully on another adventure to seek wisdom, better society, and do commerce, going down the only road that I’ve ever known: Here I go again.