The Past is Prologue

A little under four years go, I wrote a post that started this blog.  I had just quit my job at Microsoft.  I had done so because I wasn't satisfied with work there and I  knew there was something better out there for me.  I started on a journey to find that something.  Along the way, I got derailed.  I decided to stop the journey and take on a corporate job.  It was an opportunity that was too good to pass up.  But perhaps more important, I knew I was not ready to strike out on my own.  I am not sure I had developed the right skills yet or had the right experience.  I did not have an idea I loved nor was I actually in the right state of mind to go do something on my own.

Today, history repeats itself; I resigned from my current job.  The same story played itself out.  I found that I had stopped growing in meaningful ways.  To be fair, up until now, I have had phenomenal growth at my current job.  I have risen quickly up the ranks of the staff and had significant, meaningful impact and influence at my company.  I was involved at the  highest levels of the organization and was called upon for the most important of projects.  I really don't think I could have had better opportunities anywhere else.  But there comes a point when you know there is not much  more for you to achieve and I had reached that point.  I know there is something better out there for me.

I can't tell you how both nervous and excited I am.  The last time I was here, I think in my heart I knew I would eventually just find another job.  This time around, that is just not the plan.  My wife and I have talked a lot about what we are going to do for the next year and we are both comfortable with the risk and sacrifice we have to do to make this work.  While we have prepared for this day for a long time, nothing can actually make you ready for the moment the day arrives when you cut the cord and you go off on your own.   I'm nervous but its a strange kind of nervous.  I'm not nervous things will go horribly wrong.  I'm well protected against that.  I'm just nervous about the unknown.  There is so much to this I just have no clue about.   I know I'm going to get tripped up along the way but it is also kind of exciting.  For too long, I have not been out of my comfort zone.  It's been too easy to go to work and do my job.  There is no chance that this endeavor is going to be easy and I really like that.

Do I think I may eventually go back to corporate America?  Perhaps.  But you shouldn't live a life of regret.  If I never really try to do something on my own, there will always be that.

Working Inside Apple - A Big Secret?

 

How come there is no book that describes what Apple's organizational structure looks like or how decisions are actually made?  There is a brief Fortune Article on the subject, but there is no full fledged book like there is for other tech giants.

One of the reasons I know I should be in executive management is because I love studying organization structure and how that can completely change the culture and success of a company.   I am particularly interested in Apple because it seems extremely unique.  Steve Jobs is at the center of it all.  By all accounts, every major decision is run through him.  This seems almost impossible at an organization the size of Apple but yet the story is consistent.  It also seems that they don't align themselves in traditional business units.  The Fortune article explains that only the CFO has a PNL and that nobody acts as a General Manager.

As a organizational structure geek, I'm fascinated to see how Apple is able to maintain this.  Lots of big companies give lip service to trying and run themselves like a startup but I think so few succeed.  Apple may be one example of a big company that was able to keep some of its small company roots.  At the very least, they found some way to keep one man at the center of it for so long.  I someday want to start and run my own tech company so would love to get some insight on how Apple has made this possible.

Given the number of people who have worked at Apple and have left, and the fact that the culture is so unique there, I'm actually very surprised nobody has taken the time to write a book.  I'm sure it would be very successful.  Can this just be another example of the people fearing the wrath of Jobs for divulging too many Apple secrets?

The Most Important Thing

 

If I can give you one bit of advice for you to be successful in life it is this.  Learn to prioritize.  Burn this statement in you head.  Think about it every time you have to decide what to do next.  Prioritization.  it is just one simple word and yet so few people or organizations do it well.

I have seen so many projects, products, and companies fail for the simple inability to know what is truly important and make sure that it gets done and it gets done well.  Most people tackle hard problems with a shotgun approach.  It is the simplest way to try to solve a problem but it is always the wrong way.  Rather than take the time to do some thinking upfront or to take a risk that the wrong thing will get done, organizations try to "minimize" their risk by dividing their resources and tackling the problem from several different angles.  Of course, very few organizations have the resources to be able to do multiple things well.  So rather than do one thing really well, they do ten things really poorly.

The reason most people can't prioritize is because humans hate to be the bad guy.  Setting priorities means telling someone "no" or that what they want is going to have to wait.  Everyone thinks their problem is the most important.  Of course, there can only be one problem that is really the most important so the vast majority of people are going to be disappointed.

Further, it also means knowing who you are.  This implies knowing who you are not.  Believe it or not, most companies are unable to answer this question.  Companies want to be everything to all people.  However, taking this approach means you are nothing to no one.  If you know who you are this makes knowing what you should do pretty easy and the priorities just line up.

So if you find yourself with too much to do and yet you are not accomplishing very much, prioritize your work.  Give everything a numbered priority.  There are no ties.  Understand what is important and then start from the top.

Why I Drive a Crappy Car

For someone who makes and has as much money as I do, I drive a very modest car.   I have been asked before why I don't get a better, newer car.  There are times I have thought about it but in the end I can never bring myself to spend money on a new car.  I'll explain why.

I bought the car new in 2002.  It was a beautiful Honda Accord.  I "splurged" a little bit by getting the V6 engine.  It was my first new car; I had an even older, used, Honda Accord before this one.  It was my first major purchase after college and I had never had anything so nice so I treated the car with kid gloves.  I washed it regularly, maintained it to spec, and just kept it in really good condition.  I could not have been happier.

The problem is, the high of buying a new car wears off quickly.  Humans quickly adapt to stimuli.  After the first few months of having the car, it was just a car.  It became the means by which I got from A to B.  I still took good care of it.  I was still happy to have it when I compared it to the P.O.S I had before.  But the same initial delight that came with the new car smell was gone.

Like anything in life, the new car could not keep me at a sustained level of happiness.  This is often called hedonic adptation.  People get used to good things (for that matter they get used to bad things too but that isn't the topic for today).  This is why lottery winners are often no happier several months after winning the lottery than they were before winning.  The initial euphoria of winning the lottery makes them ecstatic.  But people have a natural level of happiness that is specific to them, and they soon return to it almost no matter what.   So in my case, I spent $20,000 for a quick shot of happiness but it wore off as I continued with my life.

I am not trying to say I should not have bought the car.  I needed it and am happy I got it.  However, given the problem of hedonic adaption, my decision not to buy a new car should be a little more clear.  A "better" car would probably cost me in the neighborhood of $40K to $50K, more if I really wanted to splurge.   It is something I can easily afford but to what purpose?  I'm not unhappy with my car.  While a new car would be better, it would only bring me incremental happiness.   Is this bump in happiness for a few months worth delaying my retirement by a year or two?  No, it isn't.

This is not to say I will not someday buy a new, more expensive car.   Someday, my current car will not meet my needs and I will want to look for something new.  But I will not buy it just to satisfy some desire for "newness".   Everyone should think about this when spending any amount of money they consider to be significant.  Study after study shows that the pleasure received in buying things almost never reaches the level expected by the purchaser a few months, sometimes days, after purchase.

 

 

Why Management is Not for Everyone

I have to give a lot of career advice to people.  One of the most common conversations I have to have is if someone should pursue a career in management.  I normally try to steer people away from this path because it really is not for everyone.  Before you actually get in management, it seems like a no-brainer.  It is more money, less work, and all you have to do is tell people what to do all day.  When you actually get there, you realize that this is simply not the case.

I think the best way to illustrate my point is to talk about last week.

I ran in a marathon on Sunday.  This was no ordinary marathon.  This was the LA marathon of 2011, a marathon run in some of the most miserable conditions.  I had not properly trained for it. I was injured toward the end and had to compress some of my training.  Given these things, I really should not have gone to work the next day as my legs were barely functioning but I had no choice.  I was traveling Tuesday through Thursday for work which meant that I had to get some things done in the office before that.  You might think I could just go in for a few hours, take care of those things, and then go home.  But I had to be in the office early for some meetings and I ended up staying later than everyone else trying to tie up some loose ends.

The next day, I was up at the crack of dawn to catch a flight to NYC.  You might think I wouldn't have to worry about anything going on in the office, but unfortunately that is not the case.  We have recently lost a few employees and this forces me to have to take care of a lot of different things.  Both before and after I got off the plane, I was in constant e-mail contact.

Nothing really slowed down for me over the next few days despite being out of office. On Thursday, my plane took off late and did not arrive back home until after 11:00 p.m.  I should have taken Friday off.  But there was no way I could.  I had several candidate interviews to take care of as well as some pressing HR employee issues.  You compound this with the fact that I was supposed to take the next Monday and Tuesday off and you can see that it was important for me to get into the office.

To top it all off, I am about to head into work.   What?  I thought you said you were going to take Monday and Tuesday off?  You are right, I was going to, but I now cannot.  It turns out there is a very important, time-sensitive project my CEO wants me to undertake.  Time is really of the essence here so I have no real choice in terms of cutting my time off short.  This despite the fact that my wife has already scheduled the time off and will now be staying at home without me.

The point of all of this is not that I am complaining.  This is the life that I have chosen because the trade off is right for me;  I do not mind comprimising my own personal life to achieve more at work.  The point is that this trade off is not for everyone.  Management, when done right, puts more responsibilities on your sholders, not less.  You become responsible for everyone underneath you.  Their problems become your problems.  If you are not prepared to take on more responsibilities, and therefore have less choices, than management may not be right for you.   This is not to say that management sucks or is hard.  For some people like myself, the choice is the right one because it plays to my strengths.  For others, not so much.

As for the other perks of management?  Highly overrated.  I have been a manager where I actually make less money than some of my employees.  It happens more often than you think.  As for getting to tell people to do what you tell them to do?  Yeah, you may tell them to do something.  But you are definitely going to run into employees who either are incapable or just refuse to do what you ask of them.  The answer is rarely, if ever, so simple as to just get rid of them.

So think long and hard about if you want to get into management.  Know why you want to do it.  Don't let more money and to be "the boss" be the reason.

How Not to Get a Promotion at Work

I recently got a promotion at work.  I was going to write an article on how I did it and what you could do at work to get a promotion.  But I thought about it and realized that that would probably be a pretty boring topic so I decided to write about something different.  I am going to write about the things people can do to ensure they will not get promoted.  Perhaps you don't want to get promoted because you are pretty happy doing what you are doing now.  Perhaps you like making less money.  Or perhaps you want to get a promotion but are doing these things and don't even realize it.  Whatever the case may be, I decided to tell you all the things you can do to ensure you stay right where you are.

1.  Don't let anyone know you would like a promotion

Sounds pretty basic huh?  But it is the #1 thing you can do to be sure you never ever get promoted.  I have gotten several promotions in my life . I have asked for every single one.  I know, you want your employer to fall all over themselves and give you the promotion you deserve.  It is so obvious to yourself that you should get a promotion, why isn't it obvious to your boss?  Believe me, it isn't.  Here is one little secret.  Promotions don't often mean you are going to do anything different than what you currently do.  Promotions are give to the stars at work.  If you are a star, you most likely have already picked up the extra work you will have to do when you get a promotion (see #4 below). Why should an employer give you more money and a title bump when you will likely do the same amount of work you have always done?  It may be the "right" thing to do but your job has an incentive to not give you a raise or a promotion.  If they don't know you are unhappy, they won't do anything to fix it.

2.  Let your work suffer because you are not getting a promotion

Your boss wants to give a promotion to someone who does excellent work and who is mature.   Letting your work suffer in some sort of protests because a promotion is not coming or is taking longer than you want is sending the exact wrong message at the most crucial time.  A very common attitude with people who are disgruntled after not getting a promotion is to show them "just how important I really am" by not dong the great work that you think should give you a promotion.  Doing this doesn't prove anything and pretty much will put you in the doghouse with your boss.

3.  Dress provocatively/sloppily

You need to be taken seriously at work.  One of the ways to ensure that will never be taken seriously at work is dressing too provocatively or dressing down.  You want the higher position?  Start looking like you already have it.  It may not seem fair, how you look does not generally affect your work performance, but whoever said life was fair?

4.  Keep doing your job

Here is one of the biggest misconceptions that people have about promotions.  Just because you do your current job great does not mean you should get a promotion.  Do you honestly think that writing great code is at all close to being able to manage people?  Completely different skill set.  So if you want to be sure to never get a promotion, just keep doing your job and never reach beyond that.  Don't show any initiative to take on things that are outside your job description.   Do not volunteer to do extra work.  Just keep kicking butt at whatever it is you are supposed to do and you will stay right there.

5.  Don't tell other people about the work that you do

Nobody is going to be a bigger promoter of you than you.  It is important that you let others know of the good work that you do.  This is not to say that you should constantly sing your own praises; nobody likes a braggart.  But you also should not quietly go about doing your job.  The thing is your boss, even if she works with you closely, does not know the full extent of everything that you do.   Your promotion is going to have to be justified by more than just your boss.  It makes your boss' job much easier if he and others can easily recite your accomplishments.  If you are not interested in a promotion, then just keep your accomplishments to yourself.

6.  Do what you are told

Huh?  How the heck can doing what you are told be a bad thing?  The problem is if you ONLY do the things that are being asked of you.  Part of being in management is dealing with ambiguity.  You can't be told what to do in certain circumstances because there is no plan to get there.  If there was a ready-made road map for the business to follow everybody would follow it and there wouldn't be any winners.  So one of the things you are going to have to deal with is not being given explicit instructions on what to do.  If you have never shown the ability or inclination to reach beyond the instructions of your boss, your boss won't be able to trust you with the things that are the most important; these are the things that she can't describe in exacting detail.  So if you want to stay at your current level, juts keep doing what you are told.  Better yet, when given an assignment that you can't figure out, just complain about it.   I guarantee you, you will look like you can't get to the next level.

Interview Advice - Don't Tell Uncomfortable Stories

I once was in an interview where the potential employee started to tell me a story that made me extremely uncomfortable.  I usually try to engage in a little bit of light conversation when I start an interview to make the candidate at ease.  I normally introduce myself so the candidate has a sense of who I am and the conversation can happen naturally.  When I told this particular candidate about where I had worked in the past, he started on a tirade about why he hated my old company.  This was not a passing comment that he made.  He proceeded to go on for about five minutes about why the place I worked at was pure evil.  He was very adamant about the whole situation an it made me feel unbelievably uncomfortable throughout the whole thing.  Needless to say I did not give him a hire.  Till this day, it is still a story that we talk about when we talk about odd things that happen in interviews.

So here is some really simple advice for people who are about to interview.  You want to be thoughtful and engaging.  You definitely want to be remembered.  You just want to be remembered for the right reason.  Tell a unique story.  Throw in some humor if you can.  But under no circumstance should you make the interviewer become uncomfortable.  That means you should not do the following:

• rant on about why you hate your current job


• tell a personally embarrassing story like how drunk you got this one time


• go into a tirade about how underpaid you have been in the past


• how cute you think your interviewer is


• why you hate something about your interviewer

The saddest thing about this list?  I actually know of or have been part of instances like this.  So please, stay on topic.  Be professional.  Even if the place you are going to go to is extremely casual and fun, that does not mean you should feel free to talk about anything I have mentioned.

Do any of you have examples of when you have been uncomfortable because of something someone said during an interview?

Who Knew Running Could Be So Expensive?

I recently took up running.  I am training to run in the Los Angeles Marathon in just a few weeks.  Running a marathon is one of those things that I decided I wanted to do at some point in my life.  I wanted to do it earlier rather than later before I got too old and would not be able to run a very competitive time.  I thought I would run one marathon and be done with it but it just so happens that I actually enjoy it. I will probably end up running a few more over the next few years and if I really enjoy it, I could see myself doing a couple a year until I can't run anymore.

That being said, I am ending up spending way more money on this activity than you would think.  Running is one of those things that should be really cheap.  There really is no equipment.  You just put on a short and a shirt, throw on some shoes, and then hit the road.  But over the last six months I have spent the following

• Fee to register for the Marathon - $150


• New shoes - $200  (explained later)


• Arch supports - $30


• Running gloves when I run at night and it is cold - $15


• Running Shorts, 4-5 pairs.  $100


• Running Shirts, 4-5 $100


• Socks $50 (also explained later)


• Athletic tape $15


• Calf Compression Sleeves - $30


• Running Light for night running - $8.00


• ArmBand for Iphone + headphones - $30


• Energy bars and various food items - $50

All said, that is over$750!  That is a lot of money considering most of you can just go right now and go running for free.

Now some of what I have spent is because I have had legs problems since I started running longer distances.  Right when I got to double digits in terms of miles, I have had a few different ailments, mostly shin splints and knee pain.  At first I thought it was due to what I thought were high arches.  I won't get into physiology involved with this (underpronation vs. overpronation) but basically the shape of your feet have a lot to do with the type of shoe you should buy.  At first I just bought an arch support insert thinking it would help.  It actually  made it worse.  I then looked at buying different shoes.  Higher arched people should buy shoes with more cushion so I bought the Nike Air Max+ that you see pictured above.   So I bought the shoes but unfortunately, these shoes fit a little bit small.  This made them uncomfortable to wear so I decided to buy really thin running socks rather than wear my normal thicker cotton socks.  This definitely helped the shoe fit better but I still found that running would cause me to have pain, often severe, in my legs.  This caused me to buy the athletic tape and the calf support.  This definitely helped the situation but it didn't resolve it.

After much searching, and several weeks off form running, I discovered a problem with my thinking.  Although my feet definitely have high arches, I am also quite duck-footed.  That is, my feet then to not line up straight when I either stand or I walk.  they tend to be turned outward by several degrees.  Although my arch would suggest tend to run on the outside portion of my foot, the positioning of my feet suggests I run on the inner portion of my foot.  I have gotten the completely wrong shoe!

I had not really noticed this before because the problem is only slight.  They tell people to check their running shoes to see if they wear unevenly and my shoes normally wear fine.  I believe my problem is very small, but this small problem is magnified when I run long distance.

I ended up buying the ASICS Men's GT-2150 This shoe is much better for people who tend to run on the inside part of their foot which I am apt to do because I am duck-footed. It is probably too early to know if this will actually help me out but preliminary results look pretty good.  I went on a run last night and my legs aren't bothering me that much.  I am hoping this is the end of the money I have to spend on a sport that should otherwise be free.  But I am also looking at getting the CW-X running tights (pictured below) if my knee condition does not improve.   That will be another $80 spent!  I'll let you know soon if I buy it and it helps.

Taxes and the Census

Do you think people don't really think about taxes? Look at the latest census numbers to come out and the effect it has on Congressional seats.

New York	-2
Ohio	-2
Illinois	-1
Iowa	-1
Louisiana	-1
Massachusetts	-1
Michigan	-1
Missouri	-1
New Jersey	-1
Pennsylvania	-1
Arizona	1
Georgia	1
Nevada	1
South Carolina	1
Utah	1
Washington	1
Florida	2
Texas	4

There are seven states that don't have any state income tax.  These include  Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.  Of the eight states that actually gained seats, four of them are included in that list.  The two that gained the most, Texas and Florida, are some of the most income tax friendly states.   Some of the least friendly states, New York and New Jersey, are the states that are losing people on a relative basis.  of course, this is not the only factor causing this shift.  There also seems to be some correlation between warmer and colder states, but it is pretty interesting when you look at it through the lens of people trying to avoid paying taxes.   This is exactly what you would expect.  People protesting with their feet.

The Hidden Cost of Control

One of the things that managers and executives often forget is the very high cost of putting in controls to run the business.  I am not here to say that a company should not have any controls.  There are obvious places that rules and process should be put in place to make sure the desired outcome is achieved.  But I see the same pattern happening over and over again for companies as they reach a certain size.

When companies are just starting out, there is usually little to no controls in place.  Developers have access to production machines, employees can buy anything they want, assets might be listed in someone's notebook.  But as companies get bigger and bigger, and more employees are hired, something inevitably happens.  Someone screws up.

This is actually caused by several problems.  But top on that list is the fact that companies lower their hiring standards.  Nobody likes to admit that it happens but it does.  If everyone could be trusted to do the right thing and know what the right outcomes were, there would be very little need for controls.  But as it is, companies feel compelled to add headcount the bigger they get.   When it is discovered that finding really talented, dedicated, and smart people is difficult companies compromise.  They instead turn to the misguided notion that process can replace people.

The thinking goes that if you just put enough rules in place, any idiot can follow the rules and achieve the right outcome.  Problem is that the same people who believe this do exactly that, they hire idiots.  This of course perpetuates the cycle.  Since idiots are hired, they need more rules put in place for them.  Now you may be thinking, what's the big deal?  So a few less than talented people are working at a company.  No big deal right?

Well I have yet to see a company segment out their rules by the capable and the idiots.  The same rules apply to everyone.  This creates a reversion toward the mean.  The idiots are able to do a little bit more when they are told exactly what to do.  Of course the superstars on the team also have to follow the same rules.  Rather than being able to use their judgment according to the situations, they get bogged down in formal process and rules which were never meant for them.

Management and executives always say the same thing, "We will keep the process down to a minimum".  My favorite is, "The process is simple.  You just need to ask and I will approve right away."  The problem of course is that management is very busy.  If all decisions have to be made by a single individual, and that individual is never around, decisions don't get made.  This slows people down by a lot more than you would expect.

But there is more.  Not only does it slow down things as they are happening, it actually prevents things from happening in the first place.  I have seen this behavior with my own eyes.  Rather than have to fight through the process, smart people will just not bother.  They do not want to waste their time hunting people down and getting a dozen people to sign off of every little change.  They just will clam up and never make any suggestions, waiting for someone to tell them exactly what to do.  In this day and age, where innovation is king and speed is of tantamount important, this can be a slow and agonizing death.  I have a great example of this.  I have been in situations where every little computer request needed to be scrutinized.  I had an engineer whose computer was painfully slow.  Now realize, a computer is an engineer's main tool.  If it slows down by 1/2 you literally have an employee who is 1/2 as productive.  Rather than ask for a new computer, the engineer just suffered.  When his computer slowed down, he would just sit and stare at the screen.  How ridiculous is that?

Of course, this problem is not readily apparent, so management often does not notice how their own participation can slow so much down.  In my next post, I'll describe what should be done to fix this problem.

How People Keep Themselves Poor

It is often amazing to me how people treat money.  What I am about to tell you is a true story about somebody I know.

Someone I peripherally know got married.  She had not known the gentleman too long but it was young love and she did not know any better.  They decided to have a "traditional" wedding.  That of course means "expensive".  All told, the wedding cost over $70,000.  But here is the kicker.  The family did not pay for the wedding.  Instead, the bride put it all on her credit card.

This is not someone who comes from a very rich family.   $70,000 is probably two years of salary to this person.  But you only get married once right?  But wait, it gets worse.  The marriage lasted all of three months.  I will not get into the reasons why but the couple had differences that they were not prepared to deal with.  But think about this for a second.  Two years of salary are now down the drain.  In reality it is closer to three years when you factor in taxes.  All this for a marriage that lasted 1/10 the time it will take to pay off the expenses.  Let's compare this to my wedding.   I spent a total of $7000.  I make much more than the person I am talking about and have much more money in the bank.  I did not have to save for my wedding nor did I have to scrape to get the money together.  I just had it.  My wedding had no material impact on my financial situation and never will.  Despite the lack of impact it had on my finances, I can honestly say I had a perfect wedding.

This incident will impact this girl for the rest of her life.  She is going to spend the next several years attempting to pay this debt off and it will drag like a weight behind her no matter what she does.  So what is the lesson here?  The problem goes well beyond the mere fact that she spent way more on her wedding than she could reasonably afford.  It is about how people view money in relation to their life.

Like it or not, your life will involve, and often revolve, around money.   You need it to live and you need it to do most anything you want to do.  Since money is so involved with your entire life, the accumulation of wealth is something that has to be very carefully cultivated.  As this incident shows, one mistake can create havoc.  We live in a society where most people feel fine trading short-term wants over long-term needs.  This is what happened here.  I am sure the bride did not think about the long term ramifications of what she was doing.  She wanted to have the "perfect" wedding and was willing to trade away her future for it.  Of course, she probably did not consciously make this trade off and that is the problem.  The future seems so far away and unreal to some.  It is difficult to actually think about it and plan for it.  Because it is difficult, people choose not to deal with it.  Of course this is no excuse, life does not really accept excuses, and when reality hits them people often wonder how they got themselves in this mess without realizing they were the source of their own problem.  They just decided to defer the problem to their future self.

Low Interest Rates Does Not Equal Good Deals on Housing

I keep hearing real estate "experts" say that now is a great time to get into housing because of the low interest rates that are currently available.  Let's forget the fact that real estate experts always say it is a good time to buy housing.  They said it in 2000 at the beginning of the boom and said it again in 2007 at the peak of the housing bubble.

But let's look at the logic of this argument.  There is no doubt that interest rates are low right now.  This means that people can generally buy a more expensive house because their payments are going to be less per month as they pay less in interest.  So it sounds like a great deal doesn't it?  Get more housing at less money.

However, there is a slight problem with this.  It isn't just one person who has this opportunity for low interest rates, it is the whole country.  This creates competition for housing and drives up demand.  This is exactly what happened in the early part of the century.   Housing prices rose because people had access to cheap money.  As the money became more expensive, and the cost of housing reach unsustainable levels, the bubble burst and housing prices tumbled.

So think about the current situation.  Interest rates are once again insanely low.  They have absolutely no where to go but up from here.  We know that as mortgage rates go up, people can not afford as much home lessening competition.   There is no way that interest rates can go much more down from here so that means that they will go up.  Since we know that prices and rates are inversely related, this means that housing prices are definitely coming down.

Do you really want to own a depreciating assets?  Experts say if you have no plans on moving for several years than don't worry about it.  But who knows what your situation will be like in a few years.  In the long run, it is much cheaper to have a smaller principle payment and higher rates than the reverse as you can always refinance but you can't easily lower the principle amount on a loan.

So please, to all real estate professionals, quit trying to sell that low interest rates mean its a great time to buy.  It just doesn't add up.

Why Finishing College Might Actually Hurt Your Career

I was thinking about all the people who never finished college and went on to great careers.  Just look at this list off the top of my head

• Bill Gates


• Steve Jobs


• Michael Dell


• David Geffen


• Larry Ellison


• Mark Zuckerberg

The list could go on for quite a while. In thinking about this I actually think this is not entirely a coincidence.  On that list are some of the most powerful and influential people in our modern business world.

Now in any sort of argument like this it is important not to confuse cause and effect.  It could easily be argued that all these people would have been successful whether or not they completed college.  It is not the fact that they DID NOT complete college that they were successful.  It is merely the fact that successful people will be successful no matter what.

While I certainly believe that may be partly the reason, I'm not sure there is not some level of causation.

One of the things I have been thinking about lately is how our society is organized and how it has created certain outcomes.  One of the things that is readily apparent to me is that our society is not geared to produce creative thinkers.  Our education system is very rules based.  And rules are in direct opposition to creativity.  The more rules you put on someone the more you constrain and limit her creative side.

We have created millions of students who know how to follow the rules and conform.  We use standardized test to measure performance and emphasize rote memorization and regurgitation over creativity and original thinking.  Those who are able to excel at these things are the ones who do well in school but they are not necessarily the ones to change the world.  You cannot change the world if you are constrained to thinking like everybody else and by following the rules that others have laid out for you.

I am not trying to be negative about our education system.  I am someone who benefited greatly from the current system as my strengths lie in taking standardized test and in rote memorization.  I therefore excelled in school.  But I am also not (yet) lighting the world on fire like the list above.  We as a society have emphasized this type of learning and environment to produce exactly what we wanted; a group of workers who would excel at doing exactly what was asked of them.   This was exactly what was needed for the majority of jobs that we created during the twentieth century.  Factory workers need to follow instructions exactly.  So do accountants (the last thing we need is "creative accounting".

So while I think our education system is great at producing this type of worker, it is not so great at creating the Steve Jobs and Mark Zuckerbergs of the world.  As we move away from a world where the good middle-class jobs are no longer available in the factories of Detroit but only via the screens of Silicon Valley, can our education change with it or will we be doomed?

Too Many Lawyers?

I went back to my ten year college reunion this weekend.  Princeton has reunions every year.  The big reunions are every five years (the biggest being the 25th reunion) and as such, I decided to go down for the day since I was in New York City.  Quite a crowd turned out.  Despite it being her 25th, Michelle Obama was not one of them.   It was more enjoyable than I would have predicted.  Last time I went to reunions for my fifth, I did not have a particularly good time.  I decided to go for the entire three day event.  By the end of the second day I really was wondering what the heck I was doing there.  This time, I decided only to go for the day (and none of the nighttime activities) and it ended up being the perfect amount of time to see the campus and a few of my friends I wanted to catch up with.

One of the things that sticks out to me though was a fact that was given at the end of the P-rade.   As my classed marched down I heard two facts.  One was that my class, the class of 2000, was setting attendance records for the 1st, 5th, and 10th reunions (all reunions I attended).  But the more interesting fact was that the number one profession of my class was being a lawyer.  To be exact, it was stated that 14% of my class had become lawyers.

Now, I went to an Ivy league school and you would expect a large percentage of my class to be in high paying jobs.   Since law is a high paying job it does not surprise me that it is a profession many in my class pursued  What surprised me was that it was number one.  And as I thought about it I though what a sad commentary that actually is for our society.

Don't get me wrong.  I think lawyers are necessary in our society.  I also don't think all lawyers are scumbags like others might.  But for me, law is an ancillary profession.  It is best as a supporting function to the creation of value and wealth to our society.   It is in the same class of profession as accountants and clerical work.  These are jobs that are absolutely necessary but at the end of the day is overhead to the actual creation of wealth.   This is in contrast to things like medicine, manufacturing, or the creation of intellectual property that actually drive the economy and create value in our lives.

So what does it say that the brightest mind in the country if not the world are pursuing careers that are not creating wealth to our society?

I think it says a couple of things.  First, I think it says something about how the cost of obtaining a world-class education has skewed the choices we make.  Most of my class graduated with quite a bit of debt.  This problem is only getting worse has college becomes more and more expensive and having a college degree does not make you stand out anymore.  It used to be, for my parent's generation, that having a college degree was not the norm.  Now, all my friends have one and that in itself means you have to find other ways to differentiate.  Most people are finding it necessary to get a post-graduate degree to really make themselves stand out and earn the money needed to pay back these college loans. This is a true fact.  I am the ONLY one of my college friends that does not have a post-graduate degree.  Think about that for a second.  I'm the only one.  I have lots of friends from college and they all decided to pursue even more education.

The second problem I see is that we are emphasizing the wrong things. As a country, we have created a society where one of the best paying jobs is being a lawyer.  Now to be fair, this has been the case for quite a while.  But I would argue that before it was more a function about the scarcity of the education required to practice law than it was about the voracious appetite to produce lawyers.  But we are now pumping out lawyers at a very large rate.  There must be an overwhelming demand for lawyers in order to keep salaries as high as they are.    This is because we have created such a complex set of laws and a society that is so litigious that it is required for any large corporation to have an army of lawyers ready to protect and to sue.

So rather than create professionals ready to find the cure for cancer or to create the next great product we create an army of people ready to sue others.  How on earth can we change this dynamic?

Macbook Pro Review

I recently got a Macbook Pro for use at work.  I'm not sure when I became such an Apple user (I have an iPhone and an iPad) but I now have the trifecta of Apple products.  This marks my first OS X computer.  I've been a user of plenty of other operating systems such as OS/2, Solaris, Linux, and Windows.  I did use a Macintosh SE way back in the day.  But I have not used any modern Apple OS so I was interested how it would turn out.

To sum it up, I'm completely unimpressed.  I really went in with an open mind.  In fact, I really wanted to like it since I like my iPhone and everyone I know who uses Macs love it.  They love it so much they won't stop talking about it (which bugs me a little actually).  As someone who greatly values easy to use products and products which are designed with the customer in mind, I was hoping that this Apple product would really open my eyes to how computing should be done.  It hasn't.   Even more disappointing is that I have one of the nicer Macbook Pros.  I got the one with an Intel i7 processor, upgraded HD, and upgraded Video Card.  This thing should be rocking.

Now one thing I will say is that I feel I might feel differently if I had not used Windows 7.  Compared to Windows XP, the Windows version most people are familiar with, I think OS X blows that out of the water.  If OS X was like this 5 years ago when XP was really your only choice than I can understand the love.  Even compared to Vista it is superior although I never hated Vista as much as others.  But compared to Windows 7 I'm just not sure the Apple "simplicity" edge is really there anymore.  Here is how it breaks down for me.

Stability - This is the one thing I was really interested in seeing.  Apple users swear that Macs never crash and make fun of Windows users who experience the Blue Screen of Death.  Well I am pretty sure all those people need to shut up.  Since the launch of Windows 7 I rarely, if ever see the BSOD.  It may have happened over the last year but I honestly don't remember having any issues since Windows 7 went RTM and I'm a pretty heavy computer user so you would think I would run into it.  Within the first two days of having my Macbook Pro the thing crashed three times.  A week later, I had it freeze three times in a row on me in one hour.  This is not an exaggeration.  I called over the Mac lovers in my group to show them because they didn't believe me.  I let the computer sit for 30 minutes untouched and it sat their frozen.  The mouse would move but otherwise nothing was responding.  The only solution was a hard reboot.  Just yesterday, after giving a presentation, I unplugged the Mac from the projector and then the screen went dark and stayed dark.  Completely unresponsive.  At least with the BSOD, you know something is wrong.  My Mac just decides to die on you with no indication that there is actually anything wrong.

Business Software -  If you work in an office that is on Exchange and uses Outlook, forget the Mac.  I'm an Outlook power user.  As someone in management, my day consists of checking e-mail and going to meetings.  All things that  I depend very heavily on Outlook for.  There is no real substitute on the Mac.  Entourage,  the Mac Office equivalent of Outlook is a complete joke.  I could write a whole post on why it is inadequate but it would probably just upset me.  If you use the other Office products like Excel, Word, and Powerpoint don't fool yourself into thinking that Office on the Mac is like Office on Windows.  Yes Microsoft makes both products but that doesn't mean they are the same product.  They really aren't.

 Lack of Software in General - There are some basic things I need to be able to do on my computer and there are programs I have found on Windows to do them.  Similar products aren't available on the Mac.  It took me a while to find DB client program which would connect to all the various Database servers I needed to connect to.   I had several free versions to choose from on Windows but could only find one which I had to pay money for on the Mac.  The same can be said for photo editing.  Maybe I'm biased because I like Rick's Paint.net program but it really upset me that I found it difficult to edit simple pictures.  Those who like iPhoto are crazy.  More on that later.

"Simplicity" - The mac is supposed to be easy to use right? I wanted to edit a picture and then save it.  I opened the photo in iPhoto and tried to save it.  Was unsuccessful. Could not for the life of me figure out why the original photo, which I wanted to save over, had not changed.  I called over 4 engineers to my desk to figure this out.  3 of them are Mac users.  None of them could figure it out either.  How on earth is that simple?  Also, why is it that most of the useful commands take pressing 3 keys to do.  Ever try to take a screenshot on a Mac.  I have to hit three keys.  That is if I can remember which three.  One button on a PC.  And I don't care what anyone says.  A mouse with only one button is not easier to use.

Hot Hot Hot -  This is the hottest running laptop I have ever had.  Seriously, if it were sitting on lap during any serious computation, it would burn me.

The Little Things -Here are a bunch of other things that just annoy me

•  No easy way to lock the screen.


• Plugged in a Flash drive.  Didn't recognize it and didn't tell me it even attempted.


• I really like the Windows 7 feature of dragging windows to various locations to change size and shape.  No such thing in the Mac.


• Windows are very easily lost behind one another.


• Closing a window doesn't actually close the program.


• Force quit is not as effective as good ol' ctrl-alt-delete.

While the overall tone of the tone of this post may seem negative I'm not actually that down on the computer.  It is certainly nice but it isn't the life changing thing I was expecting.  It's like that over-hyped movie everyone talks about.  Ever notice how the movies everybody raves about are never as good as you thought.  I think the same thing happened here.  I like the computer, it is a solid performer, but I was just expecting a little more.

Back After Some Maintenance

Sorry for the VERY long break.  Part of it was me being busy but a lot of it was the fact that my hosting company decided to stop supporting my blog and I had to scramble to figure out what I was going to do.  I didn't really want to update the blog while the situation was not settled so I avoided making any posts or responding to any comments.  I moved over the comments that got lost in the migration to the best of my ability.  This site still has some issues after the move but I will try to address this over the next few weeks.

The Actual iPad Review

Ok, so I got an iPad.  I didn't actually get one myself.  Since I work for a web company, and the iPad is supposed to change the way we use the web, I figured I would order one for my group to see what the hype was about.   I ordered the Wi-Fi only version, since I didn't plan on walking around town with the thing.  I ordered 32GB version, just one step up from the base version, for $599.  I posted previously about the iPad in my non-iPad post but now that I actually have iPad in hand, here are my thoughts.

It's smaller than I thought it would be (that's what she said).

It is heavier than I thought and this makes it less useful.  It is not comfortable to hold the device in one hand for very long.  Since this is going to be used by most as an e-reader, this makes the device impractical for its main use.   1.5 lbs. may not seem like very much, but try holding that up in the air with one had for more than five minutes.The screen is as gorgeous as people says it is.  OK, maybe it isn't that beautiful.

The web browser is not a full browser, or at least people aren't treating it that way.  I use Evernote to take notes down and I wanted to copy a URL for me to read later.  Safari refused to let me use Evernote through the web.  It kept insisting I download the app which I didn't want to do.

The web browser seems to adjust the page to fit the screen.  However it can do this randomly.  I will be reading a page every once in a while and it will change the page.  Very annoying. This is not the same as the screen rotating randomly.  That is a different problem.

The screen can rotate wildly at times.  While it has a screen rotation lock, I don't always have it enabled and thus the screen is likely to just rotate.

Streaming Netflix movies look pretty good.  I'm actually kind of impressed with this app and it is very easily the best app on the iPad.

The lack of any really good free apps is disappointing.  This is in direct contrast to the iPhone where I have found very many useful free apps.  I actually have only bought a handful of apps on the iPhone and I find it more useful than I could ever want.  The can't say the same thing about the iPad.

The lack of Flash support is annoying.  This has been talked about to death but I was one of those who didn't think this really mattered until I actually needed it.  I wanted to watch the masters over the web and couldn't because all the video is in flash.  My vet told me to go watch a video on Youtube and of course, I couldn't.

The battery life is probably better than advertised.  The device can go all day even with some heavy use. 

Final Verdict:

I've used the iPad for over a week now and I think it is a nice little device but would hold off buying one for myself.   I'm not sure it is worth the $500 bucks it takes to get it and I'm not sure it is as "magical" and "revolutionary" as Apple is trying to make it out to be.   It is definitely less useful than a laptop, less convenient than a smart phone, but it does serve nicely as a "niche" product.  I just don't think niche products are worth $500.The device is at its best doing light browsing sitting on the couch.   Since it is always on, it is very convenient to grab it to look something up quickly.  My wife particularly likes to use it to browse through various shopping websites.  She thinks it is very convenient because it is a good size for her and doesn't get hot like a laptop would on her lap.

Some people will love the device just because it is new, different, and of course, it is Apple.  But for those of you who hold no such loyalty I think it is best to wait on getting an iPad.  Several other hardware manufacturers like HP, Sony, and reportedly Google are getting ready to launch their own tablet devices.  They are bound to be cheaper since you won't be paying the Apple premium.  Since I have found the apps for the iPad less compelling Apple won't have this advantage over its competitors.  So as long as the competition make a solid web browsing device, then I think it best to take a wait and see approach.

Calculate Your Social Security Benefits

How sad is it that when I saw this article on determining social security benefits I instantly thought to myself, "I know exactly how much I will make in Social Security, $0"

According to the Social Security administration, we will start running Social Security deficits in a little over 6 years.  It will go bankrupt in a little over 25.  Since I won't be eligible for Social Security for over 30 more years, I'm pretty sure there is not going to be anything left for me at that point.

What is the most sad is that I will have been earning the maximum amount for the maximum allowed time.  In other words, Out of all the people in the United States, I'm the biggest payer into Social Security.  Ironically, I'm pretty sure I'm never going to get a penny out of it.  What a scam.  If you ever wonder why I rant against government, this is just one other perfect example.

The Non-Ipad post

I feel kind of left out not talking about the iPad when it seems like it is the only thing every other news source in the world is talking about. But since I don't have an iPad right now, I really have nothing to talk about. I actually meant to swing by the local Apple store today to check it out but I've been sidelined with a cold the last few days. I'm feeling so left out I was considering just holding my iPhone really really close to my face figuring it wouldn't be much different than actually having an iPad in the first place.

To be fair, I actually have an iPad on order. It is supposed to arrive in the next week or so. However, I'm not one of those early adopters that is Apple crazy. I ordered one because it has relevance to my work and so I wanted to have first hand experience using this device who others seem to think will save the world. My expectations are a little more modest. Now, I think the iPhone is great. It is very useful to me and I'm a proud owner. I've used Android based devices, both the Nexus One and the Motorola Droid, and have to say the iPhone wins by nose. I've been meaning to put up a comparison but like much of my blogging efforts these days I just haven't gotten around to it.

I'm sure the iPad will be a fantastic device. But let's get real here for a second. Apple did not invent the tablet. The tablet has been around for quite a while and it has never caught on. Maybe Apple has improved upon the idea. I'm willing to keep an open mind. But as someone who has used tablets in the past and found them a little wanting, I'm somewhat skeptical about it. I guess we will have to wait and see until I actually have one in hand.

Schwab - Finally works!

After a lot of problems, I finally got my Schwab checking account to work.  But not after having a few more problems.

Since last time I posted, I got sent a letter with my PIN number on it.  I went to an ATM to withdrawal money and the stupid thing STILL DIDN'T WORK!.  You cannot imagine my frustration at that moment.  I refused to try again just in case I punched my PIN in wrong (I'm sure I didn't since I was VERY careful) since trying more than three times and getting it wrong locks the card.

So I had to call Schwab, yet again, and ask them what the heck was going on.  They let me enter a new PIN right then and there and assured me the PIN was active immediately.  I did not have to wait to use it.  This time, I took my wife with me, who was right there when I selected the new PIN, so she could watch me enter the numbers.  And finally, after a little more than three months, I am now able to fully use my Schwab checking account.

Is this one time patience will pay off.  I guess we will just have to wait and see.