Funny Thing Happened On the Way to Ohio, or That Picture of Your Boss You Posted on facebook


UntitledI've said it before and I'll say it again: all entrepreneurial bosses are the same.  Of course, I don't mean it literally – they are not stamped figurines.  Yes, they are the same in their principal qualities (aggressiveness, single-mindedness, drive, vision, impatience, arrogance, callousness, etc.), but they are also different people with their own psychological makeups,  individual quirks, and human peculiarities.  Some can be informal and approachable, others are aloof and snobbish.  Some can be intellectuals, while others are simple and limited.  Some of them are religious conservatives, others are broad-minded libertarians.  Some are healthy and others suffer from an array of ailments.  Some like spicy food and others cannot stand a hint of curry or garlic in the air.

There is one universally common denominator that definitely unites all business owners, though - they are employers.  And as I wrote in CFO Techniques, one should never cross the line with one's employer, if for no other reason than in appreciation for creating one's job.

So, here is a little anecdote that involves a sociable female business owner, her all-male sales staff, and some spicy food. 

First, let me clarify one thing.  This woman, tough as nails and brutal in her nature, nevertheless strives to present a friendly and cheerful demeanor to the outside world.  Experienced people can see through that veneer and know to watch their steps around her.  However, when you get together eight men, even though subordinate, and one woman, even though a boss, the dynamic gets a little muddled.  I mean, when they are in a gaggle, it's especially difficult for men to suppress the testosterone.  It clouds their judgement and they forget for a hot second what's behind that charming smile. 

Oh, yes, and about the food: she really does like it hot.  You'd be in a restaurant with her, she orders a dish and then asks the waiter, "Is it spicy?"  The waiter smirks, probably thinking, "That skinny bitch will be asking now to make it mild," and answers, "Yes, ma'am, it's very spicy."  And she goes, "Could you, please, ask the chef to make it spicier." (Sometimes I actually consider of giving her a present of Pure Capsaicin Crystals, but I know she's going to try them and I don't want to be responsible for the consequences.)

Back in December, she held a three-day sales summit in the company's NYC headquarters – all salesmen came over from their different locations.  This usually means breakfasts, lunches, and dinners together.  Thankfully, in NYC that's not a problem.  The team enjoyed French-Asian fusion, classic American steakhouse, Korean…  An Italian restaurant is always a must, since the sales person with the most seniority comes from a Bolognese family. 

Unfortunately for the boss-lady, Italian food doesn't offer too many possibilities for extra-spicy.  She orders Shrimp Fra Diavolo over linguine, but it's not doing the job.  Red pepper flakes are asked for and happily received.  She starts shaking the plastic thing over her plate and orangy-red bits sparingly drip out (there is a reason the container is designed this way – one must use the hot stuff with a caution).  That's not enough for her – she starts shaking harder and harder…  until the top flies off and most of the pepper from the bottle ends up in the sauce.  All the men at the table are laughing their heads off – the boss slipped up!  Maitre d' sees it (how can you not, with all that violent shaking?) and immediately runs over, offering to replace the dish.  The lady refuses and laughs lightheartedly with her "boys" about her clumsiness.  She removes some of the pepper excess onto her bread plate and proceeds to eat what, I imagine, is an unbelievably spicy pasta without breaking a sweat.

Six weeks later, the same group of people is on the road visiting their Rust Belt customers.  They started in Pennsylvania and are now on their way to Ohio.  I'm sure my readers understand that the food scene in the industrial towns of Western PA is not quite the same as it is in NYC.  Here you go for Italian because it's probably your best choice.  So, there they are again with dishes that vaguely correspond to the Italian names on the menu.  This time around the owner's sauce is not spicy at all, but the generic plastic bottle with red pepper flakes is already on the table.  She reaches for it and the shaking ensues.  The memory of the NYC debacle is too fresh for the boys not to bring it up: "Be careful, don't shake the top off," a few of them warn.

Let me step aside for a second: Just as the bosses' human qualities differ, so are the ones of the subordinates.  A couple of them are of the self-conscious type – they simply don't want to be inside a public spectacle again.  Others are genuinely concerned about her not spoiling her food.  Yet, there are always those resentful, passive-aggressive employees, who secretly cherish the idea of a boss making a fool of him/herself.  One of those had his iPhone at the ready.

Well, as you probably guessed, the container's top comes flying again and a half of the red pepper flakes ends up on the pasta.  Oh, the childish hilarity!  Everybody laughs – some wholeheartedly, some to cover up the awkwardness.  The prepared dude snaps the picture and immediately posts it on facebook.

A young salesman who told me about the repeat performance of the pepper flakes show was visibly hesitant and uncomfortable with the whole facebook posting part.  I was simply appalled at the disrespect.  And what about the owner/CEO herself?  Did she fire that rude fucker?  Of course not.  The emotions should not interfere with business - it's impossible to replace a high-caliber sales exec overnight.  But I know this woman very well.  She's never going to let it go.  You can see it in her unsmiling eyes when she laughs about the whole thing.  She is on the lookout: as soon as she finds someone else, the insolent fool will be gone.  She will not even flinch; just like she doesn't flinch from the spiciness of her food.

Economic News Flash: Another Dinosaur Bites the Dust


UntitledIn case you didn't hear, during the past 4-5 days BlackBerry Ltd. (formerly known as Research in Motion, or RIM) has announced that they (1) have generated a $1 billion loss (!) in the last fiscal quarter alone; (2) plan to lay off 4,500 "staffers" (35% of the company's employees); (3) will become private again if the intended $9/share stock buy-out by a Canadian hedge fund Fairfax Financial goes through.

So, after allowing a healthy company (modest $300 million volume in 2002-2003; respectable and still okay $3 billion before the introduction of the iPhone in 2007) to get unmanageably huge ($20 billion in 2011), the mastodon got crushed under its own weight.

Well, first of all: Dah!  I thought it was obvious to everyone that sleek iPhones will keep pushing BlackBerries into the proverbial corner – when you stop being "the cutting edge,"  you can only go this far on the price incentives.  In fact, not only iPhones, but also Google's Androids and Microsoft's Windows Phones surpassed BlackBerry's devices in their service capacities.

I do have some questions, though, regarding the etiology of this grand failure.  

How did the company get so stagnated in less than 30 years since it was formed and mere 14 years since it introduced its first email pager?  Where were all those Ivy-League graduates who were hired to manage innovations, operations, marketing, finance and human resources?  Where were the $700/hour consultants and public accountants?  What did they do with all those expensive Business Analytics and Performance Indicators organized into pretty dashboards?  Why didn't they regroup, contract, reinvent, restructure?

I'll tell you where and why?  The dumb asses, greedily preoccupied with the value of their personal stock options, were staring at the market ticker instead.

When a company grows with an exponentially increasing speed, like cancer, the sensible management by capable people becomes impossible, simply because their supply is too short.  To fill the gaps, a trivial approach is adopted, i.e. hiring according to the laundry list of garden-variety requirements.  Unfortunately, conceptual thinking and understanding of fundamental principles cannot be substituted by expensive diplomas, high test scores, and flowery resumes.  If you go the standard route, all you get is a bunch of highly-presentable empty suits with steely eyes, strong voices, unsubstantiated self-confidence, and not a single original thought in their heads.  Thus, the entrepreneurial brilliance that made the company possible in the first place completely disappears.    

Real business is not a multiple-choice test or a text-book case study.  It's far too dynamic and complicated to be approached with basic school techniques, no matter how ivy the school is.  And the world doesn't slow down for a creature too big to coordinate its own movements.  There are unproven theories that giant dinosaurs, such as Stegosaurus, had a "second brain" - an additional nervous center responsible for the movement of their hind legs and tails.  Makes sense to me, because an ogre with no brain power at all, is not able to coordinate any of his movements; let alone quickly react to changes around it. 

Even more important question for me personally is why wouldn't people let this diseased monster die its very natural, evolutionary death of being stomped out by the stronger competitors?  Why pour almost $5 billion into this carcass?  Has Fairfax Financial been bribed by the Canadian government into preventing even larger job losses?  Did US Treasury, so keen on protecting the stock-market investors, participate in this scheme as well?  Unless the hedge fund is seating on some miraculous technological break-through, politics is the only explanation I can come up with for this waste of money. 

Maybe if BlackBerry were let to die, the other members of the dinosaur herd would've taken notice and treated their gigantism with some surgical partitioning.  Maybe they would've even stopped hiring according to the bullshit diploma-ranking and personal connections and started looking for the real spark of an intellect in their management.  Alas, we probably will never know.