43

 Happy Birthday!

What a time to be alive. Using an em dash in your writing makes your writing look like AI. 

People are forming into camps about what the future looks like with AI between doomerism and hyperbolic optimism. 

I suppose I fall in the latter camp. Seems like the future is going to be great in ways we can't even imagine with the possibility of AI and robots. 

The company I co-founded with Eric is going well. We are leveraging the technology to build something really cool. Something that is positive and helps communities. Presumably if we do our job the right way money will follow. 

Kids are growing up. 

Brett is a good man with a good heart. He looks out of the good of the group over his own personal interests. You don't see that much in people. He is going to be ok regardless as he has avoided the serious mistakes of drugs or crime. If he figures out how to apply max effort towards something he could accomplish a lot.  School is such a small chapter in our lives. Brett really fell in with good friends this year in school with after school clubs and dungeons and dragons. It was a multiplier in his life that he started doing card games like Pokemon and Magic and board games like D&D. I hope he keeps that up as he gets older and has strong friendships. Brett only has one year of high school left - wild. It does not feel like 18 years since I found out I was going to be a Dad. He is the reason for everything in my life now. I needed to change as a person to be a father in his life so here I am. 

Bode is a strong personality that likes to take on the world. I like to see the fight (some times - he doesn't have to do it all the time). He is very different from Brett - both could learn from each other. They are best friends and as Brett goes I imagine so goes Bode. Brett is a good for Bode and vice versa. Bode really came online this year with kindergarten with reading, writing, and math. He has a strong intellectual curiosity and it seems like one day he will want to see if he can knock me down. I will stay strong anticipating that day will come and I can teach him one more lesson. 

Madison is sweet. Sweetness is needed in the house. She is smart and maybe the most athletic of the bunch. There are lot of advantages to being the youngest and I am very thankful for her.  The fact that she choses to give me hugs at random steal my heart.

Mallory is doing well at work. There is always a certain level of stress she needs to maintain in her life but things are working well for her. She is getting deep into her career. She is a great Mother to our kids and the house is good because of her kindness and handling of emotions and personalities. 

This year was mainly focused on the vanguard of this new AI technology and how it applies to so much. I podcasts less. It is simply too exciting to be using what little free time I have away from being a stay at home dad to not tinker around with coding, agents, and the adjacent technologies. The podcast will always be there and I enjoy it but it is more of a social tool than company building. Company building is exciting for now. 

I am staying in 'shape', staying strong and avoiding injury. That last part seems to be the most important as I move forward through my 40's. Stay healthy so I can keep training. 

Reading went well this year. More biographies like Socrates, Ben Franklin, Warren Buffet, Steve Jobs, Napoleon, J. Paul Getty,  Hewlett and Packard, Dell. There was more but that is top of mind.  I stopped taking notes on the books that I read. I don't 'remember' as much per book but I don't think that is the point. Books are like food. It nourishes you and becomes part of you without you quite knowing. You are different today that last month because of the food you eat and the things you read. 

Money is always at the forefront of my mind but it is more on how best to deploy it now as compared to accumulate. I passed the break in the swim from shore and I can use the current to speed things along. Passing large amounts of capital to my kids seems not optimal. People seem to need to earn it for money to be used wisely. Things that are given are treated as a throwaway. I don't know how that looks but maybe getting a lake house before I am 50 would be good. Pass along how to enjoy being on the water and some memories as compared to a pile of money.

We built a sauna in our bathroom this year (Thanks for the help Alex). I enjoy it every time. It feels like an afternoon at the spa. Here is hoping it helps extend my life.

-Brad

Organizational Structures

Henry Ford accomplished a fair amount in life but one of his more remarkable accomplishments that may have propelled the rest of it was how he structured Ford in the early days. 

Every employee came through the entry level positions. Tool makers, line workers, janitors. His philosophy was those that came to work, worked hard and took on additional work then earned the promotions. Earned through contribution not through office politics or applying for higher job titles. 

It was common that a department head started as a sweeper or the factory foreman started as a metal castor. 

Higher titles have the disadvantage of downshifting motivation to work. Structural hierarchy develops a culture of 'do as I say because I am higher than you' as compared to natural leaders emerging – the type of people that finds themselves actually leading people because they have earned it through effort and knowledge. 

What is an optimal structure? 

In an organization people need structure. 

An organization should be formed around Contribution Level with each Contribution Level having associated pay bands and scope. 

Something to the effect of:

Associate - New Entrant. Learning core skills and accomplishing specific tasks under supervision. 

Lead - Mastered core skills. Identifies and implements techniques and procedures to increase quality and efficiency or reduce cost. Owns execution on work. 

Principal - Deep multi-area expertise. Able to identify new opportunities across multiple domains understanding company wide impact. Mentors and develop other personnel in the company. 

Each level can have two pays bands – Associated (1&2), Lead (3&4), Principal (5&6). 

Why this works? 

Because everyone starts at the beginning learning core competencies of actual production. This allows an organization for hard chargers to find ways to make their job higher quality, more efficient or lower cost and using that freed up time or money now being able to be deployed in a new way. The charge in on the individual employee to want the additional workload whereas some times organizations are set up that the title is needed to take on more work. 

Find a way so a job can be done better, take on more work that you want to do and work your way up the ladder to higher pay and title. 

This type of structures is built from the bottom up. Not the top down. An individual in an organziation doesn't make Principal to then start directing orders at others to follow but earns Principal because they have developed that level of leadership and expertise already. 

What about specialty positions?

Sometimes an organization will find themselves in a position that a skill needs to get brought in – something with deep knowledge and a specific scope that is critical to the success of the company but may not mix well with this structure. 

Hire a consultant. 

Use their skills to fix the gap in knowledge. Ensure a Principal or Lead works with the consultant to learn. 

These highly specialized consultants are more competent if they are outside the company finding work across multiple companies, domains, and doing a wider variety of projects. Lean into that fact. The skills and knowledge will be at a higher leve. If performance drops another consultant can be outsourced more easily as well.

These types of highly specialized people won't want to start at Associate because they have earned a higher band already. That is true and their pay should be appropriate to their skill. 

An organization will thrive better if everyone in it starts at the bottom. High speed individuals, including those will a high levels of education, should be able to learn the core skills and navigate through Associate quickly. This is important that time in grade or service is not a component to promotion – only demonstrated contribution level. Those individuals that come in a kick ass should be rewarded. 

A lot of people will filter out because those with 20 years experience won't want to go back to associate and work hard all over again. Good – in your organization you want hard workers. Most people only want higher titles so they can stop working so hard. But you want an organization where everyone is sprinting because they want to. 

So you install fresher people, people with less experience but are willing to work hard and learn.  

As people move from Associate to Lead ensure you give them the control to own their work. They are the front line and should have the responsibility to implement decisions. If you don't trust the Lead and Principals to implement good ideas autonomously then fire them and promote someone else you do trust. 

A fast moving organization geared with this structure can take on any challenge because the culture is built from the bottom up. 

Remarkable

How does someone cut through all the noise.

There is so much offered in this world.* 

Our needs are met. Most of our wants are met. 

We are advertised to for a seemingly endless amount of products and services.

To make it through the noise what you are doing needs to be remarkable. 

Offering something that is distinguished by its own uniqueness. But not unique for its own sake but unique that adds value. 

Advertising the traditional way used to work but it doesn't anymore. You can't simply create a business advertise it on social media. Use the clicks to generate revenue and plow more money back into social media advertising. 

Social media is now flooded with things you are not interested in and we have been trained to ignore almost everything that is in front of us.  

But your friend telling you about a new product makes it through the noise. Having your co-worker tell you about a new computer program that helps with the job makes in on your radar. 

That is something people will seek out.

And if what you offer is being specifically searched for then you will be at the top of the list regardless of everything else. 

Because if you are looking for Pizza in Crozet there will be lot's of choices even in this small town with all the restaurants, food trucks, gas stations. But if you search for Sal's Pizza that is what you are going to find.

So create something that people will go out of their way to search for. 

Getting a new job is easy if you are the person everyone is recommending because you are so talented. 

Create the best possible version of what you are offering and let the long tail deliver the returns. 

----

*Let's assume the world you and I live in if you are reading this. There are pockets of the world that live under different conditions and they are not reading this blog post. 

Consistency

Do what you say, and say what you'll do. 

Signaling to people what you will do and when you will do it. Then following through. Over and over again. 

That's consistency.

Consistency = professionalism.

Consistency is more valuable than talent, than IQ, than capacity...combined.

When you are consistent people can count on you. You become dependable. Miracles happen downstream of being dependable. 

You get opportunity that others don't. You compound your effort over longer periods of time -allowing for the long tail to grab ahold of your efforts. The muse can find you if you show up consistently. 

Regardless of the size of effort being consistent is the thing that matters.

The Best Sales Pitch

 Selling comes down to providing value to the customer. 

That's it. 

If you have something that ameliorates a pain point you get the sale. 

A hot dog cart at a busy intersection around lunch time wins regardless if there is a better hot dog a few blocks away. 

There have been good books on this topic but Harry Browne's 'Secret Of Selling Anything' probably is the most concise and efficient at delivering the information.  

However, if you have read anything about Edwin Land, founder of Polaroid, he might have the sales pitch I have ever read. 

Edwin recently developed polarized glass. This technology blocks out part of the light wavelength to reduce glare but keeps vision sharp unlike tinted glass that simply everything darker.  

To sell this new technology he has a sunglass company come to his western facing high-rise suite around sunset. With the sun blasting through the windows the company comes in squinting to see Edwin. He apologizes for the glare and says 'I bet you can't even see the fish tank by the window the sun is so bright'.  

He hands out his new polarized sunglasses and the pain of the glare is instantly removed. He asked the executives 'how many fish do you see now?'

They all answer correctly and got the sale. 

It would have been one thing to put them in front of powerpoint slides* and tell them about this new polarized technology but it was a masterclass in demonstrating value to have the sun destroy their retinas and give them the treatment. 

Not every sales pitch for your product, or your raise, or getting a date will be that demonstrative but if you think on those lines you will be better off than most. 

---

* The horrors of powerpoint had not yet existed back in the 1930's when Edwin Land invented polarized glass so a typical presentation would have looked closer to print outs or projections. 

Power To The People

Ben Franklin's 'The Pennsylvania Gazette' was one of two papers in Philadelphia in the early 1700's. The other papers owner was also the postmaster. This access provided by the government position allowed him direct access to subscribers as he didn't allow Franklin's Gazette to be delivered through the mail. 

By 1737 Franklin won't the postmaster job and immediately recognized the advantage of having direct access to his subscribers as a result the Gazette became more profitable.  

Similar to today's world where social media accounts are at the whims of the businesses. Incorrect posts can get you down regulated, shadow banned, or publicly banned. 

Having direct access to your audience is crucial. 

The task of building this type of audience is more difficult. It is easier to to hit a like or follow button than find a newsletter or blog and follow.  

The asymmetry works in both directions though.  It is better to have fewer subscribers or followers of something you control. It likely is better by an order of magnitude.  

100 people that open your email newsletter is better than 1000 followers on Twitter (X). Like Kevin Kelly's '1000 True Fans' there is simply a higher level of bond for those that self select in. 

The hard is what makes it good and lasting.  

Technology and Housing

 Technology is an innovation that reduces fiction costs. 

Steam engines replaced horse power. Reducing the need for raising, feeding, and sheltering work horses. 

Computers replaced people. In 1950 there was about 350,000 switch board operators working. A few computers replaced that job and reduced the costs it took to make a phone call.  

It doesn't make sense that industries like realty having had the benefit of technology for the past 50 years. Reducing the friction costs at every level of the process and yet still charge the same 5-6% commission. 

Selling a house 50 years ago was much more intensive. Even with fax machines, computers, digital photography, internet, and Zillow having come along the costs is still the same. 

That is not congruent.