Corporate Democracy is a Myth

Vladville
2 Comments

Reprinted without permission from The Icahn Report, it’s that important that you read it as big or as small as you are as a CEO. The truth of the matter is, once you go public it’s no longer your company, it’s not your customers company – you now have a boss. If you are any good there will be thousands of them:

Corporate Democracy is a Myth

Recently, there has been a great deal of outrage concerning the huge pay and severance packages awarded to a number of CEOs. There has been much criticism of the fact that CEOs earn 520 times that of the average worker. A great deal has been made of the scandalous actions of a number of CEOs and boards concerning the backdating of options. Sadly, a much deeper, more pernicious, more threatening problem of the future of our economy exists at today’s corporations: many corporate boards and managers are doing an abysmal job. The lack of competent leadership makes our companies less competitive day by day, causing an upward spiraling trade and current account deficit, as well as a near meltdown of the financial sector. The buildup of incompetent boards and managers is the result of poor corporate governance. Poor corporate governance now threatens more than just potential shareholder value; it threatens this country’s very economic survival.

To paraphrase Winston Churchill, “democracy might not be the greatest system there is but it is the greatest system mankind has invented so far.” Many American corporations are dysfunctional because corporate democracy is a myth in the United States. They run like a decaying socialistic state. Our boards and CEOs exist in a symbiotic relationship where the boards nourish the CEO with massive stock options that are re-priced downward if the companies stock declines – making them forever valuable. They reward the CEO with pay packages and bonuses when the stock is floundering or the CEO is leaving the company. Corporate performance and the shareholders welfare seldom enter the picture. What kind of democracy is this? There is no accountability.

The inherent quid pro quo is to pay the board huge retainers for attending several meetings per year and rubber stamp ill conceived CEO proposals. In turn, a CEO can fly around the world on the company’s private jet on the “business” of visiting all the world’s greatest golf courses while he runs the company – and the value of your stock – into the ground. The average shareholder can do nothing about it. A great example is the subprime mortgage mess that has cost our economy and the populace untold billions of dollars and personal hardship. These losses did not stop boards from awarding huge severance packages to the CEOs most responsible for the current carnage.

It is the board’s responsibility to hold a CEO accountable, and remove the CEO if he or she is not producing results. But exacting such a measure requires effort and strategic consideration, and boards are often too lazy and/or passive to rock the boat, especially since the company will continue to pay and pamper and even indemnify them under almost any circumstances. Board members receive expensive tickets to important sporting events, the theatre, and are also treated to use of the company’s fleet. Worst of all, the board itself is not made accountable because corporate board elections are generally a joke.

Board meetings are often a complete travesty. I know because I have sat and do sit on a number of boards where I am in the minority. Because of this, today our economy is in a major crisis. Many of our companies are incapable of competing. Additionally our banking system has issued mortgages that cannot and will not be paid back. We are in this situation because there is no leadership in the executive suite. Why did we get here? Because in corporate America there are no true elections. It is tyranny parading as democracy. It’s a poison running through the blood of corporate America. Perhaps, with enough public support, the lawmakers and regulators will take note.

When you rid a company of a fruitless board, the rewards are often enormous because the underlying company and its employees can be excellent. It is the top level management that hangs like an albatross around the company’s neck. Years from now historians will marvel why we the shareholders – the legitimate owners of companies – did not do something effective about removing terrible managements. We can do something about the current situation. I will discuss in future entries how simple it can be and what has constrained us from taking action.

Here you go..

System Admin
2 Comments

For quite some time we in the IT industry have enjoyed a great reputation as problem solvers, designers, creators, architects of peoples IT dreams, if you will. It’s not an easy job, it’s not a low skills job and you get to work around some very smart people.

That backfires horribly when you do something wrong because your coworkers will stand over your shoulder and make fun of you as you try to figure out if your boss was joking about you being fired if the email isn’t back in 10 minutes.

Ah, the joy of work in IT. Earlier today I got an IM telling me that our corporate email was down. One of the tasks for the week was to have Office Communications Server 2007 up and running. Yup, you’ve guessed it, they got bit by the Howard problem!

Now, its easy to point at people and make fun after the issue has been addressed. But seriously, at which point do you just break out the beatdown machine and let it loose on the people that have been responsible for hundreds of Exchange 2007 64bit boxes for well over a year? Even if I forgive that, at which point would it have been obvious that rolling out OCS on a 64bit server was going to fail? Would it have been during the documentation which should have been read? How about the lab deployment before going into production?

Still a no? How about some common damn sense, if you’re about to try to install a 32bit package and it prompts you for web components you should KNOW it’s about to roll up ASP.NET 32bit assemblies into IIS and blow it sky high.

The ultimate bringdown? How was the problem solved? Googled and found the Vladville blog post. Ooooooooffff. First, till the day I die or all these folks move on I get to hold it over their heads that “without me this global ISP won’t even be able to check email” and of course there is now a mandatory tshirt printing “I fail so hard at life that I use Vladville as a technical resource.”

Let the shaming begin..

Speaking of shaming, OCS 2007. Very cool, I’m a pretty big fan to be honest and they have even brought it down into the SMB land now, you can get a server license for about $600. And as impressive as that may sound, as I mentioned to Handy Andy earlier tonight, it doesn’t quite hold a candle to Messenger:

“its like taking what you and I are chatting on right now, throwing it into stone age, and asking for $10k in licensing and 3 dedicated servers.”

Got the little Communicator on my desk right now. It’s no MSN Messenger but comes close and beats MSN in the enterprise integration parts.

Firefox 3 Download Day

Open Source
1 Comment

180x150_02 Firefox 3.0 is being released today and the folks over at Mozilla want to set a Guinness Book World Record for most downloads! So aside from being a fantastic browser you also get to be a part of history!

Check it out: http://www.spreadfirefox.com

Eating Lunch Alone

IT Business, Misc
1 Comment

This week, I will be eating lunch alone at Annies down the street. I intend to sit there by myself with a little paper notebook and brainstorm all the ways in which we suck as far as our organization is concerned. Basically, I want to try to take myself out of the OWN space and see what would piss me off about working with OWN.

Then I intend to take those items back, meet at 4PM and find a way to fix them before Jul 1. We’re coming up to a major rebranding (marketing) point and I want to make sure not to leave any stone unturned. We’ve received a ton of feedback since September of last year, we have stepped up the documentation and communication efforts which have been very well received, we’ve fixed tech support by getting rid of the top offenders and have been seriously working on addressing the issues with billing, portal, software and even licensing.

The key point being totally disconnected from it and forcing myself to lay it out without ability to actually do anything about it. No laptop, no cell, no PDA, just pen paper and some grilled chicken. The frequent downside to “fixing” things is that you focus on the solution and not the 18,000 other problems that are going to be caused by the change you’re about to make.

As always, will keep you up with how it changes / evolves.

P.S. On a flip side, another killer month on the books. We’re seeing a pickup of people going out of business and we’re seeing a tremendous pickup on the side of the people that have been reselling services across the board – Exchange, mail, web hosting, ExchangeDefender, offsite backup… While I will never wish any ill will towards anyone that disagrees with me, I have to say I find it rather amusing that the people that argued with me over the years over not wanting to resell hosting services as a part of a business model and instead focused on MSP & hours and projects and are now closing doors. “Vlad, what’s a few bucks here and there going to do for my bottom line? Nothing!!!!” Turns out people will stop funding projects, drop patching managed services but they won’t swallow thousands of messages piling up in their inbox or getting rid of their email or backups, who would have figured there would be a sustainable business model behind that. Keep on fighting the future and saying “My clients would never go for that”..

Yup, still love my job!

Vladville
1 Comment

I’m fairly proud of this weekend mostly because I got a lot of things done. It really goes back to Friday when I didn’t take my usual DFWVF and instead worked with one of the new guys on some new exciting things we’re trying to do to make us suck less as a company. Even though it’s 1 AM after Fathers Day most of which I spent with the laptop on my legs and a little monkey on my shoulder, I feel very fulfilled in how it went and not stressed out at all.

Which brings me to a point – your job (business / company / vocation) should be fulfilling and motivating to the point that you love going to it and enjoy working in it. You shouldn’t be stressed out of your mind, working half to death just to drag your beaten carcass back home where you can have quick access to a firearm. You need to work on finding ways not to be stressed out at work.

The best way to do so is great planning. If you can pull that off my hat is off to you, you’re a better man than I am.

For me it’s all about stacking the deck of disappointment so high that it doesn’t matter on which miserable task I work on, it’s really not going to get any worse with time because as the pile of shit grows it solidifies the building of shame I have in our shortcomings so that I can really get in the gear to fix them and not run around like a chicken without a head trying to plug holes on the floor of a sinking ship. So I take them one by one in nearly random order and get them done and I find that way things get done much faster.

Now that’s perhaps a little dark to the casual observer but really, who motivates me? Money? Nope. Boss? Don’t have one. Partners? Sometimes. My only driving force is to keep on improving the business by being a part of it and constantly moving it forward and fixing what appears to be broken.

I’ve been at this for a long time and I love it more now than I ever have before. Most people in my role or at my skill set are giving up on what they do, they look for distractions or other projects they would rather be on. They want something new, something fresh, a challenge! (Note to self: offer a gig the next time, if they have figured it all out maybe we can use them); I just can’t understand at all why anyone would try to work so hard for something just to be able to go and work on something else outside of the company..

I for one am going nowhere. I love what I do, I love what we do, and I love being a part of evolving what this company can do as its resource scope grows. That to me is exciting, motivating and more than enough to let me look around the pile of things that I don’t like about what we do. But you know what, I am still in it and I am still competing and don’t think I could just quit on that and move to something else……

Unless someone came by with a large, large, large, large, large sum of money of course 🙂 Then it’s whoring all the way in as shameless of a way as possibly imaginable!

Hope you enjoyed this exhausted mental thought-stream. This is why I usually write an outline of what I’m going to say before I do 🙂

The Fear of Honesty

SMB
2 Comments

Every now and then I get that tap on the shoulder, someone wants to chat with me in a dark corner and ask if I am about to offend people with what I say, think, believe and do.

You see, it is incomprehensible to some that a person will speak honestly and firmly about a sensitive subject that all traditional marketing and PR training has told you to avoid. In every organization there exists a list of items that are not for discussion, not for disclosure, that should never be admitted or commented on. Customer facing staffers are trained to avoid discussion of those items, to manage the conversation, to steer it in a way and whenever something potentially sensitive comes up to just nod and “thank you for your feedback, I will escalate it to the person in charge which just so happens to live in the castle with the Lochness monster.”

This is the norm of the services industry, professional as well as vocational. Your cell phone company will give you the same runaround that your office cleaning crew supervisor will.

Somewhere along the way people just chose to make “courteous” a synonym for patronizing and deceitful. For the dictionary experts out there – it’s not.

So why do folks in this business find it so important to base their approach on the exact same path of least resistance? Because all their gurus are doing it, and all their suppliers are doing it too.

“Oh, you just started your business and don’t have any customers and you’re at this conference instead of back at home working? Oh, right, because you wanted to get some fresh air and exchange ideas instead of trying to build business.

Well, that is fantastic. That’s a GREAT idea. You know what else is a great idea? This $20,000 management tool. Listen, as you grow you need a solid management foundation and this will save you money!”

Substitute any product, service, solution up there, it’s always the same. Four step process to closing business with IT professionals:

1. Listen to the war story at full attention.
2. Congratulate them on their opinion, even reinforce.
3. Ask about their problems.
4. Explain how your product will solve all their problems, close.

The faster you can get them into the debt up to their eyeballs you can’t really be held accountable for your solution sucking and not living up to the promise because they owe you money.

This, believe it or not is the standard operating procedure that is actually very well received and respected!

So suffice to say I get a little miffed when someone wants to discuss my approach of not lying straight into peoples faces and instead telling them what they don’t want to hear.

It’s not my fault that you’re an SPF, it’s your problem that you aren’t building a business.

I have absolutely no problem saying that. I base it on working with thousands of IT solution providers and hearing every sob story and every wild IT solution dream scheme ever imagined. I work with some damn successful people too, and I try to offer some of that wisdom on this blog. It may not be a pleasant reading material for 99 out of 100 people, but that 1 guy may still have a shot.

I’m all about that 1%. Let’s be honest, business is tough. Management is tough. Marketing is tough, even when you have a ton of money. Business is not easy. You have to surround yourself with the people that will keep you on your toes and keep on adjusting you as you go along.

And now we come to the actual jist of this blog post: when you can talk openly you will from time to time get smacked back in your mouth and people will have no fear to reach out and talk to you. You get to learn, you get to grow, you get to see things coming from a mile away instead of waking up from your dream one day in the middle of the sea of reality. Is being brutally honest bad for business because it will discourage people from working with the crazy man or woman? No. Because you may turn off some, but you will open up discussions with thousands more and actually stand out in a sea of drones that do the exact same thing you do. Call it leadership, call it insanity, but give it a shot. If you keep on going to networking events and never make a buck from anything or anyone you meet there it’s a good indication that the best practices drivel you read isn’t paying off for you.

Maybe I’m all wrong on all of this, but least you’ll be able to sleep at night.

Why change? Dell is Direct.

SMB
2 Comments

I’m going to try something new. I am going to write an eloquent post, in much the same way that I run my business and project my values through it.

There is a lot of discussion again about Dell being the fire-breathing dragon setting the lives and careers of small business professionals on fire and burning down the “channel bridge” they so often talk about building.

For those of you not familiar with this business allow me to sum it up for you:

Dell is a computer manufacturer whose motto is to go direct and compete in a market with tight margins and plenty of substitutes. Small business IT consultants are by nature middlemen that profit from service and product markups along with the overall solution design and deployment.

Both crowds are competing for the direct relationship with the customer because in the entire equation that is the most profitable variable. It is all about the customer.

Dell wins when they are able to sell their entire solution stack to the customer. Small business IT consultants win when they can sell their preferred solution stack to the customer, either because it fits better or earns them bigger margins.

Both pretend to want to do business with each other but neither is willing to give up their ground of owning that direct financial relationship with the customer.

So they lie to one another. Dell lies to the partner community by telling everyone they are very focused on the channel, that the entire company history and culture of “going direct” is going to flip on its back for a handful of SMB IT consultants. SMB IT consultants in return go back to the villified vendor for their computer equipment because they are the cheaper and the easiest of the computer manufacturers to purchase from due to their direct nature and service delivery.

The two coexist when its convenient and fight when nobody is watching.

So why is it a surprise to some that Dell is not a channel friendly company, and why is it a surprise to Dell that its channel partners are not feeling the love from their partners as it offers one critical SMB IT Consultant service after another? Onsite delivery, onsite repairs, proactive managed services, cloud services, etc?

Why is everyone so surprised that people in business talk from both sides of their mouth?

Because in business the only thing that matters is money and where you can make more of it. Wise business people take Dell at its face value, understand the number of the beast, understand the conflict and find a profitable way to work around it. Others, for whatever self-deprecating reason, choose to think they can change the status quo that has been around for over a decade in a very profitable way.

SMB IT consultants like to talk about ethics, about the importance of staying small, about the importance of local commerce and doing business within your community but I can tell you that statistically speaking SMB IT Consultants would rather do business with anyone but one of their own. I had never set out to build OWN by contributing to the community, I did so because I wanted to help build on a movement that helped OWN break through and grow by learning from peers. All the while I was writing Vladville guides, video blogging, SBS Show, I got a lot of atta-boy but in equal measure I got a lot of recommendations not to do what I do for free. I was messing up the commercial life of selling advice to the SMB IT community. I didn’t stop. Want to know what finally made me quit?

“Several hundred people, by my best account, would call me having heard of our great products and services and instead of giving me the business they said: “I love what you do for the community, but business is business.” That’s life I suppose, and I just helped train and promote the very people that took their money and gave it to my competitors.”

SMB IT consultants chose to run their business without emotion or gratitude.

There are no hard feelings over that here, OWN has made a lot of friends, I have made a lot of personal friends and despite or maybe in spite of all that I chose that we were going to run a professional business no matter what.

Dell chose the same. They go direct.

Words are just words, marketing and empty promises don’t generate revenue or pay salaries or grow businesses. They just keep gullible going for a little while longer, always falling back to the culture of the company.

If we all could admit to ourselves what our strengths and competencies are and focused on them instead of portraying what we wish we could be, we’d all be a lot better off. If we could focus on improving ourselves instead of criticizing those that don’t appear to be what their marketing implies that would be even better.

Damn it feels good to be a gangster…

Microsoft
6 Comments

After over a decade of sending money to Redmond in dumptrucks it is finally starting to trickle back. Damn it feels good.. 

 Untitled

Now, I’m not going to lie, the first thing I thought of when I got this was to take it to the bank and get it all in as small of a coin as the mint will cut and reenacting “Ooo.. Aaa.. Kyle’s money.. it feels sooo good on my skin” from the South Park episode you can see here.

It will unfortunately go to something far more boring than that after the receivables crunches it into some bank account. But not before I scan it into a clock from Cafe Press and wear it around my neck at WWPC…

flavaflav11“Pimpin’ so strong I sold software to Microsoft.”

Flavor flaaaaaaaaaaaaaaaaaaaav..

Hacking OWN support

OwnWebNow, Shockey Monkey
2 Comments

For the past two days I have been working on hacking OWN support, or to put it more specifically, trying to do proactive technical support for questions you haven’t asked yet.

While this problem is easily fixed by saying “RTFM” we find that doesn’t reflect too well on our customer satisfaction. Saying it politely doesn’t work either “Could you please, please, please read the documentation?” and the bloat of trying to reach people in the way that they expect the information to be presented is starting to grow. There are videos, whitepapers, frequently asked questions, blog posts, wikis.. the reality behind this approach (as disorganized as it may seem) is that it’s as such by design because both of our customers that read the documentation don’t actually read it but scan the page for the content they are looking for. So jamming everything in a single place, single location leads to information overload and effective shutdown of the nervous system which then leads to a support request anyhow. While we have built a templated response system of canned responses, its pretty demotivating for the support staff to work on problems that have already been solved a thousand times. It also reflects very poorly on my organization because it kills the problem solving skills:

“If you don’t feel stupider by the end of the day you aren’t doing your job.” –Vlad Mazek, June 12th, 2008

Who would want to work under those circumstances? It takes me about 10 minutes to get back to the complex things I generally work on after I’ve had to explain to someone how the Internet works in their lingo and technical competence. And people ask why OWN doesn’t do retail work or answer sales calls – it’s a filtering mechanism folks – it separates people that can read and click on things from the people that need the following:

DRaaS

I am calling it Documentation Reading as a Service. Basically once a new order is processed by Shockey Monkey the system will look to see if this is the first order of this type. If it is, the system will generate an appointment request in the partner account managers system and shoot a copy to the customer as well to negotiate a time for DRaaS to be rendered. In addition to the email coming out with all the documentation, FAQs, PDFs and other filler nobody will ever read, we’ll now have an appointment for the OWN drone to call the client and render DRaaS:

OWN: Hi, this is _____ from Own Web Now, you just signed up for ____ and I wanted to give you a call and thank you for your business.

Client: Wow, you’re not an Indian?

OWN: Thank you very much so kindly. Now listen, I wanted to give you a ring and introduce myself and just go over a few things with the service that might save you a lot of time and a lot of grief as you go along. Do you have maybe 3 minutes?

Client: No, but I know you’re going to call me back so I’d rather talk to you now than dodge the callerid for the next month. Shoot.

OWN: Ok, so you signed up for ___. Now just like with all of our products, the support is free and unlimited, you can open as many tickets as you want and we’ll respond within two hours. If its urgent you can set a higher priority for a few $ more and we’ll work on it immediately. Now, I see that you got _______ service, are you familiar with it?

Client: Yes, I’ve been in IT for 200 years, actually Pascal stole my idea for a calculator and the queen saw right through him when he tried to show it off.

OWN: Wow, that is fantastic! Amazing story. Ok, well, I won’t take up too much of your time, just remember when you’re doing ______ – read the entire FAQ title section in a hyper exciting voice.

Client: (God, I hope she didn’t call my toll free number)

OWN: So thats pretty much it, you’re now an expert at ______.

The big idea with DRaaS is to answer the support questions we know we’re going to get and also give them an idea of how the whole system works so that they at least have a starting point when it comes to documentation. When people see a 30 page document they do what every 8 year old does – there are no pictures in this book! So if the DRaaS gives them a jumping point to at least realize how the system works they can look up details on their own. You can read more about it in my upcoming book, DRaaS Encyclopedia, available as a preorder at $49.99; Just one page, for the busy professional on the go! But since you’re reading my blog I am going to give it to you for free:

draas

The other aspect hidden behind DRaaS is that it sets expectations right away. If we’re about to lose a customer because they didn’t know what they were getting into or they sold something we don’t make its probably better for both of us to pull out before we end up in a nightmare scenario of trying to do something custom (expensive) and both losing.

Jokes aside…

Looking at the statistics, it’s painfully obvious that most support requests are not just originated out of the clients ignorance but our own inability to communicate and set the expectations. The documentation sucks because the clients don’t read it and expect it in both encyclopedia that can be Googled and the short FAQ form that they will not comprehend because they have 101 level understanding of the underlying concepts which are supposed to be answered by the documentation originated by the dude that wrote the software and was translated into plain English by someone that drank too much in college. It’s a cycle of incompetence in which everyone loses money – we answer questions over and over again, client base is frustrated that it has to ask them to begin with, the end customer is getting billed for it all along and nobody gets to prosper because the system is broken by design.

I’m sure people would love using our software far more if they didn’t have to learn how to use it first.

Let’s hope DRaaS can fix that. I’ll give you an update a few months from now and let you know how it goes. If someone can think of a better name than DRaaS please post it in the comments.

Now off to monster.com to find someone with a sultry voice that men and women would want to listen to.

Today we all got a little richer

Microsoft
4 Comments

Today Yahoo announced that they have ended talks with Microsoft over the possible takeover. They adopted a strategy of teaming up with Google which makes them unattractive for any other takeover speculation which may put lawsuits that wanted Microsoft’s bank account to rest.

Who won in all this mess? Well, we all won a little. Some more so than others.

Yahoo! won.

Yahoo! will not be burried in the big blue monster that many other startups went under to never be heard from again. This means the awesome technology Yahoo still has will have the chance to grow up in the silicon valley. With many senior staffers leaving new people will step into the roles and do big things. Yahoo is just fine.

Microsoft won.

Microsoft won on two fronts: financial and emotional. Financial is easy point at, they won’t be overpaying for a portal like other big companies did. Remember that AOL transaction, how did that pan out for Time Warner? So Microsoft saves a little money.

Microsoft won in a really big way, and has an opportunity for a slam dunk if they can find the people and empower them in a way to work like a startup that doesn’t have to worry about VC funding.

For the first time outside of Office and Windows family, Microsoft has a chance to prove that it can actually build a technology instead of buying, acquiring, disemboweling, castrating and crippling innovative solutions others put together.

If Microsoft can embrace this opportunity and go into the build mode – with the kind of resources and platform they have available – they will be unstoppable. Microsoft got a gift here, what will it do with it?

We won.

Most of all, we all won.

We won because Microsoft will not be able to continue business as usual and acquire the biggest kid on the block to smash into the mass market as they have done with virtually everything they do. This means Microsoft will have to think smarter, faster and focus on quality – something that most of us would love to get from Redmond.

We won because Microsoft will not be able to extinguish the technologies that compete with them for the 2nd and 3rd tier – blogging and social platforms, chat, webmail – you name it, we will still have a number of choices and when there is no clear winner there are always a lot of players.

We won because Microsoft didn’t get its hands on Zimbra – the only legitimate contender with Microsoft Exchange IMHO. This means Exchange gets to flourish, as does Zimbra. Nobody gets to rest, so we all win.

We won because nothing has to die. Yahoo stays Yahoo. Microsoft stays Microsoft. Google stays Google. There is no “synergy” in this equation, meaning your del.icio.us will not have to migrate into Live.com crapware, flickr won’t have to become part of Google Picassa, etc.

Whoever becomes the dominant solution will now have to do it because of the work they put into their business…. and isn’t that really the triumph of American capitalism, that you get to fight for what you want?