Greetings from France! Things have been crazy at work over the past two months and to be honest, I’m just not one of those people that can unplug. IT is very much who I am and it’s far more than a job or a career for me – it’s just the way of life. So since I can’t unplug the next best thing is to travel to a place where I can’t plug in a laptop.

Over the past few months we have been really hard at work on Shockey Monkey, coding and bug fixing, wheeling and dealing. And now that work has been completed I have only one recommendation:

I wouldn’t buy the Pro. Just sign up for the free one. But that’s just me.

A year ago we shocked the MSP world by giving away Shockey Monkey – an MSP service management platform – for free. For some of the more advanced and more vain features we offered a commercial platform as well (Pro) to folks that wanted to help us fund the development and get support along the way. It has gone far, far, far, far, far better than I ever thought it would.

The problem with all great things is that they all come to an end and most of the time it’s due to the arrogance of the people that confuse success with invincibility. Europe is littered with empires that conquered the continent, just to end up confined to a tiny fraction of itself when they didn’t recognize the change or became too greedy. Even the mighty empire that built the massive victory arc behind me in the picture once covered nearly all of Europe – before deciding it would be a good idea to attack Russia. In Russia. In the winter.

But in terms of my own empire, Shockey Monkey has been more successful and became bigger than I ever thought it would. We’ve been busting our butt to bring the new one out and as we’ve been working with a ton of new partners one question that always came up was: “So when are you going to jack up the price and eliminate the Free/Fro versions? It would instantly put you on the same level with your competitors and be a no-brainer.”

The answer to that comes in October – but I have to stress that the following is my opinion, my opinion only and does not represent the views of the employees, shareholders or anyone even remotely connected to my empire – I wouldn’t buy the Pro version of Shockey Monkey.

Stay tuned.

Over the years my company has managed to keep it’s most gifted, albeit at times difficult, talent while most of the bad hires fell off the bus rather easily without too much pushing. I firmly believe that it’s employees that choose their path, not their bosses – though bosses are easy to blame for it.

Which brings me to the topic of investments that you’re never going to read on a self-help career site. Also something your boss is unlikely to ever say to you because.. well.. if you need to hear the following from your boss it’s probably time to move your career elsewhere.

The Beginning

In the beginning you go through the typical hiring process. If the employer chooses to hire you and you choose to take the job you agree on a set rate and benefits and start what is a mutually beneficial relationship together.

Employee is thrilled for the first few days because they have a new job, new opportunity, new money.

Employer is happy as well. However, this is the investment stage for the employer: Unless you’re at McDonalds, you are not worth the salary yet. You need to be trained, you need to be oriented, you need to learn how to do your job.

The Honeymoon

Once the employee has learned how to do their job their supervisors are happy because their workload can be spread over more people now.

Employees tend to be happy as well because they have the confidence that this will work and they can build their career here.

Then it all kind of goes to shit. Or you get a remarkable employee.

The Standoff Ladder

Over time the employee will start to feel like the salary they initially agreed to isn’t enough to make the ends meet. Something that was amazing at the beginning is suddenly unfair. The job is more difficult than it seems, the boss is a much bigger ass than he was before, the hours are longer and there are other people who make more money than you do even though without you the whole company will collapse.

This is true if your name is Shaquile O’Neal and it’s the late 90’s or early 2000’s. If that’s not your name and the calendar says otherwise, you’re out of luck. Time to start climbing the ladder.

Here is what you need to know as an employee: You are not as valuable or as irreplaceable as you think you are. In the eyes of the employer your replacement tradeoff isn’t in the job tasks (that someone else can be trained to do) but in the likelyhood that they can easilly replace you with someone that is willing to work just as hard as you do. And if you barely string together 40 hours a week in an economy with more than 10% unemployment things just are not in your favor.

This is where the standoff begins.

The employee is unwilling to do any more work than 40 hours a week.

The employer is not willing to promote or train the employee because it makes no sense to invest in something that will not produce more than has been put into it. When you consider the overhead of perks/benefits, the initial underutilization of the employee and the typical shrinkage of work appreciation (longer lunches, late to work early to leave, spending time dealing with personal items) the employer has no incentive to further invest in the employee.

The Balance

This is where you as an employee get to choose which way you are going.

For most (and in my experience, just about all) employees there is really little perceived incentive to do anything beyond what they are paid for. This is the entrepreneur trap that bewilders business owners who are on the eternal quest to find someone as stupid as they are and is willing to believe in the dream of the possibilities instead of the reality of the present. Hard working business owners dream of finding people that are just like them but the problem is that those people own companies of their own. The stalemate is that employee-employer relationship always goes between the honeymoon-standoff stages as employees progress through their careers.

Employees want more money.

Employers want employees to do more work.

When everyone has a job and economy is doing really well, employees have the advantage. Otherwise, employees have a choice: work hard and get promoted or just work and hopefully not get fired.

Almost all the employees out there live in this balance where their role is constantly threatened by the economy, marketplace or office politics. They aren’t thrilled with their job or their pay but it beats unemployment. Employers aren’t thrilled with their employee utilization or performance but it beats training new people. Hence the service you get at the DMV and virtually every other branch of government.

The Invested (crazy)

There is a very minor chunk of the employment base that is willing to work harder than they should but not stupid enough to undertake the task of running their own business and living in poverty while the new business takes off. Yes, indeed, there is a group of people who are stupid enough to put in long hours but not quite stupid enough to do it for $5/hour. Every employer wants these.

Unfortunately, due to their insanity, these are typically not the most pleasant folks to work with but there are no shortcuts in life.

Your star employees put in long hours and actually invest in themselves. Yes, these folks go home and don’t stop working. They invest in themselves and don’t wait for you to push them in the direction, they map it on their own. They don’t sit around and bitch about how nobody is training them – they go out and learn on their own. They see the problems and work on the solutions without being asked to do so. They see an opportunity in solving the problem instead of treating problems they haven’t caused like they aren’t theirs.

They are damn near impossible to manage because they have their own agenda but if we are to be honest, the whole concept of management is the impossible task of getting a full time employee to do close to 40 hours worth of actual work. Here is a quick summary

Ideal Employee

- You consistently work over 50 hours a week.
- You do projects that benefit the company without being asked to.
- You aren’t constantly asking for the 1:1 compensation for your time.
- You don’t bitch and complain about work. (you actually like it)
- You aren’t destructive (trying to get other employees, projects fired)
- You aren’t difficult to work with

Now, if you’ve read that and thought it was unfair you’re right! Sadly, you’ll never make more than teens per hour because business isn’t a fair game. Only the hungriest and most competitive folks win.

There is no shame in not being an ideal employee. Almost none are. But those that are make a significantly higher amount of money than the ones that work the bare minimum. Unless you work in the government, I can’t understand why you wouldn’t want to work 20-30% harder for a 50% higher salary but that’s why I’m not an employee.

Advice

If you’re an employer and have star employees, overcompensate them. Stop trying to find someone to replace you because you will not find someone that is exactly like you yet dumb enough to make less than you and doesn’t have your personality (which would make you want to kill them)

If you’re an employee, understand that it is not the employers role to turn you into an ideal employee. In most places it’s actively discouraged: imagine ordering a Big Mac and getting two cheeseburgers stacked between a Fish Filet (sorry, it’s 4:30am and I’m hungry). Don’t pay attention to politicians that are trying to appeal to the masses of idiots – “We need to modernize and train our workforce for the new jobs” – no, we won’t. We’ll just outsource that job to someone that can do it. Welcome to the new economy in which you only have a job if you know how to do it and unless you are willing to earn the next one you likely won’t get it.

This takes most people a long time to figure out but you really can’t push people – they are either wired to overdeliver or they just do the bare minimum. All the management books I’ve ever read embrace this idea of incentives that are basically the carrot for the stupid sales people pulling a truck of manure – all you are doing is trying to shape the 1:1 compensation model that is constantly unfair to one party. I outright refuse to do it. You can’t incentivize selflessness. Most small business owners refuse to do it too because of the mindset:

“If you want something, prove it to me.” Otherwise there is a whole office worth of people that are in the exact same position and millions of people that would love to have your job.

You cannot incentivize people to be selfless and do more than their job asks of them. But you can over-compensate them when they demonstrate that trait.

Over time you will get to the nirvana of a crappy situation that is unfair to both the employer and the employee: The employee will be getting paid more than they could make anywhere else and the employer will be paying the employee more than they are worth but won’t fire them because the replacement cost would be high. So the employee is unhappy about some aspects of the job and the employer is unhappy about the cost – but everyone is making money and at the end of the day that’s why we all go to work.

Remember: work is not about fairness, it’s about performance and results. If you can’t deal with that, I hope you can dunk! And even that’s not too bright because the NBA is in a contract dispute (the ladder stage) – so really you only have one option.

The reports of my death are greatly exaggerated.

So yes, I’m alive. I’ve been buried in financials and project planning as we both have some huge announcements this fall as well as stuff that will come down early next year. But more on that later, I’m really writing the post to address the many comments I’ve gotten over the past few days that I can only judge from scrolling through the subject lines.

Yeah, how about that?

Many of you are interested in the commentary that was generated from the last two posts. What amazes me is the magnitude of people that are willing to ask in private but don’t want to comment in public or even on Facebook or Twitter.

I’ve blogged about this a billion times and am not about to make it a billion and one. What your religious belief towards the change and progress of technology happens to be is irrelevant. Over the course of building a business you make investments and hope that new ventures mature faster than the currently mature business lines die off.

Office 365

I don’t really have the time to celebrate Office 365 going down. Everything goes down.

What I find quite surprising is that there are folks out there celebrating this yet another outage as the reason their obsolete business model stands a chance. It doesn’t. You see, every time a client chooses cloud they choose not to buy a server from you which eliminates your highest margin product and your highest project generator.

The adoption of new, more affordable technology will not stop just because it sucks.

I know it defies common sense but the technology evolution to the cloud will not be stopped because of a few outages. I look at some of these hypocritical arguments all the time and about the only thing I can explain them away with is that the folks arguing either have no experience or a very short memory span. It was not that long ago that we dealt with tiny hard drives, BSODs, failing backup jobs, failing antivirus updates that brought the network to a crawl, broken service packs that interrupted services, migration paths so broken they required books worth of hacks to get done and Windows services getting pwned left and right with 0 day exploits.

Your clients made it through all that and they paid a heck of a lot more than a few bucks per user per month.

It’s OK to admit you don’t know how to make money with the cloud or that it’s going to require scale and a different level of marketing and promotion. But if it was easy everyone would be doing it and that’s why we have OnForce and Geek Squad.

Don’t let cynicism and complacency hold you back from taking advantage of the biggest opportunity you have to grow your client base. The days of a few clients making a good paycheck are over, time to get serious and spread your wings.

But what the heck, maybe Apple, Microsoft, HP, Dell and Google are all wrong and the cloud thing will fail. Right now – statistically – that is not what’s happening. Within ExchangeDefender, the cloud is whipping on-premise by a margin of 14-1.

Look at the opportunity this way – if you really like shifting boxes, maybe the cloud offering will introduce you to folks that will need a hardware refresh.

Boy am I happy to see September! Oh, and check this out: www.exchangedefender.com

There are still a few bits and pieces along with the documentation / training collateral coming together slowly. But it’s a step in a new direction leaving the platform of a software company catering to IT providers to one trying to help consumers and business decision makers get their stuff together. (in case you’ve misread that let me make it clear: NO, we are not going direct or competing with our partners).

Epiphany

The cloudpocalypse of August 2011 has been godsent. It, along with the soul crushing conversations that I’ve had with many of you and some of your clients, gave me the resolve to finally push in this direction. Hiding behind the partners is just not working anymore.

First: You can’t blindly point at someone else for the problem because that makes you look incompetent. As I recently told my staff, “I am not paying you to tell me who broke it, I’m paying you to tell me what’s being done to fix it”.

Second: When we talk to your clients in the same manner we talk to you, it doesn’t come off right. There is a different language shared between IT professionals and ordinary humans and even this description is borderline insulting.

So the obvious question becomes – why the hell are you talking to end users anyhow? The answer is equally blunt – because you aren’t doing your job.

That is something I wanted to say to everyone I talked to in August but I couldn’t. I dropped the ball. I know. I’m sorry. But when I took the time to talk to people below the CEO level and to the end users few things became apparent:

• Your staff is either unaware, uninterested or uninformed about the solution, they only know the bits and pieces they were told or stumbled upon accidentally.
• End users are even more confused about what you do, what they are paying for and what their alternatives are when things go down. Not one of the users I spoke to knew about LiveArchive. Not. A. Single. One.
• There is no incentive for staff learning or end user training, roles are seen more as a fireman than a solution provider (hint: put the effort or stay at the same pay level forever; do your job only and you might not be replaced by someone else).
• End users #1 complaint: IT provider communication.

Now it’s going to take some time to address all of the above but I have to admit that I’m a large part of this problem as well. I deal with some really, really smart people that have their stuff together. So when I get feedback (“Vlad you suck.”) I both take it personally and am very passionate about our product and the approach. My job has been to make sure things are perfect here without bothering with what you do.

Well, over the past month I’ve been confronted with the fact that your users want and need more than that from the solution they rely to. We’re here for our partners, always will be.

But.. we’re going to spend a lot of money on the user facing stuff going forward too. There are two things you can do. 1) Ignore it completely and take a chance that they fire you. 2) Figure out a way to offer some of this stuff and risk the client knowing that a 2 person IT shop isn’t managing thousands of SPAM filtering and Exchange servers out there.

Looking forward to showing off what we’ve been building over the past 2 weeks over the course of the next month or so. I hope you like it. I know you need it. Your clients are asking for it. Are you going to give it to them?