Book Review: Steve Jobs – by Walter Isaacson

Reading Isaacson’s biography of Steve Jobs was inspiring and motivating on many levels.

Out of 1142 Amazon reviews as of today, 690 are five stars, and 55 have one star. Half of the reviews with one star are off the mark. They don’t even review the book, but they rant about Jobs or Apple in some way or other. The bottom line is that this is a great biography and very much worth reading.

I have read books on Jobs before. Two back in the 1980ies. One I don’t remember now, and the other was The Journey is the Reward, 1988, by Jeffrey S. Young. From reading those more than two decades ago I knew that Jobs was a difficult person, an oddball and yes, successful. But in 1988, Jobs was still making NeXT work, and he was far, far from the pinnacle he would eventually reach.

More recently I read Inside Steve’s Brain, by Leander Kahney and reviewed it in this blog. It focused less the person of Jobs, but his accomplishments and the processes of how he worked.

Isaacson’s book has more than 600 pages, and it moves at a steady pace, not always chronologically but more by subject. It creates a fascinating picture of a very unique man whose unusual combination of business savvy, vision, drive and creativity inspired thousands of people and affected billions in the way they interact with the world. He leads us through Jobs’ childhood and upbringing, through the rebellious years as a teenager and college student to the creation of Apple. It guides us through the years as Jobs created a company in his parents’ garage in 1976 and built it into the world’s most valuable company within 35 years.

Jobs was a creative genius and driven individual. Most people who only know him from stage appearances and magazine articles will not know just how difficult, obnoxious and outright abusive and insensitive a person he was to be around. Petulant, impetuous, conniving, sometimes lying and deceiving, he would trample over anyone and everyone in his way. I realize now that Jobs was successful in spite of himself. Had he been more measured a person, who knows what heights he could have reached – or could he?

Apple was formed when Jobs and Wozniak signed their partnership agreement on April 1, 1976. I remember that day clearly because it was my first day reporting to military service. There are a few days in life that every man remembers forever. Reporting to boot camp is one of them. I remember the day, the weather, the feeling, and thinking of the fact that two guys in Palo Alto made a decision that day that would fundamentally change things for a lot of people for a long time is staggering. One of the facts that strikes me is how long ago it was, a lifetime ago, in Jobs’ case.

I also found myself thinking about where I was with my life in the various stages of Jobs’ life and career, and I followed along, as he changed industry after industry fundamentally. Jobs stands shoulder to shoulder with Edison and Ford today. He changed personal computing, the music industry, the cell phone industry, the movie business, manufacturing and electronic design. He invented a number of new technologies that granted, others would have invented eventually, but he did it first.

As I followed along and drew parallels in my own life to get perspective on the timing and state of affairs in the world, I put the book down at the end with inspiration: Today is April 1, 1976. There is somebody, somewhere in the world, signing an agreement for a new company that will make things different for many people in the decades to come. It takes vision, dedication and a lifetime of work to make it happen. Who will do it? Will I? Will you?

Today is that day.

Rating - Four Stars

Businesses Snooping in our Lives

An angry man waltzed into a Target store outside Minneapolis and waved a flyer in front of the manager:

“My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?”

The manager didn’t  have any idea what the man was talking about. He  looked at the mailer. Sure enough, it was addressed to the man’s  daughter and contained  advertisements for maternity clothing, nursery  furniture and pictures  of smiling infants. The manager apologized and then called a few days later to apologize again.

On the phone, though, the father was  somewhat abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. She’s due in August. I owe you an apology.”

The above is an excerpt of this full article that gives an example of how Target analyzes our shopping habits and can draw conclusions about our lives that are eerily accurate. In the above case, Target knew a high school girl was pregnant before her own father did.

In my early years as a computer programmer I spent much time analyzing how to predict things like prices of precious metals, the outcomes of horse races or other sports events, based on historical data and current events. I used neural network technologies to do that, but I got only lukewarm results since my Intel 486-33 processor, the most advanced you could buy in 1989, was simply not up to the job.

Today, with computers a thousand times more powerful than my trusty 486, predictive systems are becoming more and more feasible and commonplace.

And it’s not just Facebook that collects information about us, it’s Target too, and probably Starbucks, and Vons, and … you get the idea.

Facebook Valuation

Facebook gets a lot of press right now about its expected $100 billion valuation.  There are a reported 850 million users. 150 million of those are in the United States. The other 700 million are spread around the rest of the world. About half of all Facebook users log in daily. I am one of those.

I have never paid anything to Facebook or bought anything off Facebook. If Facebook were to charge for its services, I’d stop using it. I have never really noticed any ads on Facebook and I don’t remember ever clicking on one, but I am sure I probably did subconsciously at times.

If Facebook is worth $100 billion, that means every Facebook user is worth $117.64. I don’t think I am worth $117 to Facebook, but somebody thinks I am.

We now talk about the dotcom bubble that burst in March of 2000. When will we talk about the Facebook bubble?

Of course, the founders, the employees and the original investors will do just fine. I am not sure there is a huge difference between $20 billion or $1 billion. It’s a lot of money. Nice job.

The Amazing ABC Stores of Hawaii

Chances are that if you have been to Hawaii, you have shopped in an ABC Store. Conversely, if you have not been to Hawaii, you probably have never seen one.

ABC Stores is a company I greatly admire.

Question: “Where is the nearest ABC Store?”

Answer: “Step out of the front door of your hotel and walk 50 yards into any direction.”

I just got back from Honolulu. From my hotel, I found four ABC Stores within two minutes of walking into three different directions. There are more ABC Stores than Starbucks stores in that neighborhood.

An ABC Store is like a convenience mart, similar to a 7-Eleven or Circle K, but much, much, much better.

ABC Stores are always clean, with a no-nonsense decor, a very simple logo (see picture) and an intuitive layout. The employees wear Hawaiian shirts and are always friendly and helpful, and there are lots of them in the store. You never have to wait for help. Shopping baskets are at the front, but also stacked inside the stores at central locations.

The merchandise is exactly what you want as a tourist. They have Hawaiian Macadamia nuts covered in chocolate, many different candy products, Hawaiian merchandise like T-shirts, shirts, bathing suits and hats. They have beach accoutrements, like mats, snorkels, flippers, flip-flops, sunglasses and towels. They have bath salts, candles, soaps, lotions, aroma baths. If you need groceries, bread, peanut butter, turkey, butter, eggs, crackers, canned soups, ready-made sandwiches, cheese, bottled water and soda, it’s all there. They offer the wares of a full liquor store, with beer, wine, rum for those beach drinks, and hard liquor of all types. If you need over the counter drugs, band aids, toothpaste, tissue, toilet paper, it’s all there. They stock any kind of souvenir you can think of, like hats, cups, glasses, calendars with risqué pictures, postcards, books, and knickknacks of all manner.

How they fit all this offering into the relatively small stores is a mystery, but it works. The prices are very reasonable. I have never felt ripped off in an ABC Store like I have in a convenience mart or gas station, and I have never gone into an ABC Store and not walked out with what I needed or was looking for.

The stores seem to be everywhere in Hawaii. And, supposedly, they are all owned by one single individual. I have not been able to confirm that.

Who would think you could duplicate the 7-Eleven concept, make it better, and compete successfully? It does not seem to make sense.

Yet, that’s exactly what ABC Stores has done.

Kodak – an American Icon

In April 1880 George Eastman leased the third floor of a building on State Street in Rochester, NY and began the commercial manufacture of dry plates. Thus an American icon was born. In 1930, Eastman Kodak was added to the Dow Jones Industrial Average index and it remained part of the index for 74 years, until April 8, 2004.

Kodak did not become a verb – like Xerox and Google did – but it became a brand as American as apple pie. After all, we know a Kodak moment when we see one. On January 4th, 2012, Kodak announced that it was filing for Chapter 11 bankruptcy. Its stock price hit an alltime low of 37 cents, unimaginable for a former Dow Jones company.

I don’t know what happened, but there must have been somebody inside Kodak in the last 10 years that stood up and said that digital photography was a passing fad that would never take hold. Yet, in just a decade, film followed the path of type writers, sliderules and horse and buggies. A product used by billions of people for more than 100 years is no longer used – at all.

I sincerely hope that this century-old company can pull out and see another day and create new products and jobs.

Solyndra Boondoggle

What is a boondoggle?

Boondoggle – a wasteful or impractical project or activity

The Obama Administration loaned Solyndra $535 million as part of the 2009 stimulus package. Obama visited Solyndra in California in May 2010.

He said: “It is here that companies like Solyndra are leading the way toward a brighter, more prosperous future.” Praising the green jobs loan guarantee program, he went on: “We can see the positive impacts right here at Solyndra.”

Solyndra recently filed for bankruptcy. Auditors found afterwards that Solyndra has suffered recurring losses from operations and negative cash flows since inception. They had concerns about the company’s ability to continue as a going concern.

If the government, when loaning the money, had audited the company like an investment banker or venture capitalist would have done, it is likely they would have come to this conclusion and stayed away. As it was, Solyndra and its management were strong contributors to Obama’s campaign.

None of  this means that there is any wrongdoing by Obama. There was nothing illegal or unethical. As a matter of fact, there were, and still are, other green energy loan guarantees ongoing right now, some of which may also eventually fail.

The stimulus didn’t work here. The government may lose all of its $535 million. I can only suspect that some of it may have ended up in the CEO’s pocket before the ship sank. The government did search his home, if that’s an indication.

In contrast, the bailout package worked with General Motors. The money has been paid back and the company is roaring forward now. As a result, we have an auto industry in America now – thank goodness.

But make no mistake, Solyndra was a boondoggle, a very large one with $535 million of taxpayer money lost.

Or was it?

In the Sierra Magazine of Jan/Feb 2012, Paul Rauber puts things into perspective for us on page 20, showing the Solyndra affair and comparing it, in size, to what the New York Times calls “the Pentagon’s biggest boondoggles.”

Make your judgment.

Book Review: Profits Aren’t Everything, They’re the Only Thing – by George Cloutier

Cloutier is a turn-around man. Companies in trouble hire him and he turns the business around. His advice in Profits Aren’t Everything, They’re the Only Thing is poignant, sharp and almost humiliating. He cuts right to the bone and points out what’s wrong with a business.

This is mostly written for smaller businesses in trouble. Contractors, small service companies, manufacturers, distributors, car dealerships can follow Cloutier’s advice and make a difference very quickly.

Cloutier hates golf. If you play golf, and that is important to you, do not read this book.

He also thinks that for the most part relatives are trouble. Don’t allow your wife to do  the books, don’t give your brother-in-law a job as head of sales. Keep the kids out of the business if they don’t know what they are doing.

Cloutier insists that you have to micromanage. Team play is for losers. If you are a business owner, you are the king and you tell people what to do. It’s not about making employees feel good at work. It’s about getting them to do their jobs and create profits. Business is not a democracy.

Weekends are for work. Go to church if you have to, but if you are serious about your business, you go to the office on Sunday morning. Real business owners get ahead during the weekend while everyone else is goofing off.

This book is tough talk to business owners in trouble. It’s a ruthless lesson in the basics of small business. That makes it a difficult read for anyone.

If you are in charge of a business, you cannot afford not to read this book.

Rating: ***

KLM’s Use of Social Media

Many companies are trying to figure out how to use social media in their business, and many are tapping in the dark.

KLM, the Dutch airline, has found a very unique way of applying social media concepts to boost customer satisfaction.

This looks very expensive to implement in general, and it would probably not scale. However, for what it’s worth, it deserves attention and – being a road warrior myself – had me smile just watching it.

Watch the KLM Surprise.

Idol: Bill Gates or Steve Jobs

From the Harvard Business Review:

Steve Jobs turned his company into a decade long leader in the truly new space of mobile computing. Bill Gates decided to eliminate malaria. Who do you think we should be putting up on a pedestal for our children to emulate?

Read the full article here.

Sales Wisdom: Zazzle vs. WackyButtons

Here is a great example of sales strategy gone wacky (pun intended) as outlined by my virtual mentor Gitomer. If you really go online with your business, you have to do it right.

Sports Blackouts

I don’t watch any sports, on TV or in person. But I get to observe fans around me. This weekend, the San Diego Chargers game is “blacked out” on TV in San Diego, presumably because the stadium didn’t fill up. I was just at the bank downstairs, and all the tellers are wearing Chargers shirts, and everyone is moping and disappointed because the can’t see the game on TV and they can’t afford to go to the stadium.

This must be the single dumbest marketing idea in business. Sports teams are absolutely dependent on their fans. They need to keep the fire going. They need to win, create enthusiasm and excitement. Here is a sports team that is lame enough that it can’t fill its own, comparatively small stadium of only 70,000 seats in San Diego, the 6th largest city of the United States. For comparison, Green Bay is a cow pasture, but the wait list for season tickets is decades long.

And now, since they can’t fill up the stadium because they can’t create enthusiasm, they are sticking it to the fans again by blacking the game out of television. Killing more enthusiasm. Pissing more fans off. Does that make sense?

That would be like the Rolling Stones pulling all  their songs off iTunes when people don’t come to the live shows anymore.

It’s called commercial suicide.

With all this, the team wonders why the people of San Diego keep voting not to build a new billion dollar stadium?

Controltec’s Project Won “Best of New York”

 

Yesterday the Center for Digital Government awarded the New York Office of Children and Family Services – Child Care Time and Attendance System the “Best of New York” award.

 Read about it here. 

We done good.

Apple’s Ascension

For a short time last month, Apple was the most valuable publicly traded company in the world.

Here is an insightful article on Apple and their success in the Harvard Business Review. Inspiration vs. perspiration.

Brilliant Post by Orson Scott Card

Read this review by Orson Scott Card. The man has a knack for getting to the bottom of things. His movie reviews are excellent.

I have seen and reviewed Source Code, agree with all his comments on the fake science and disagree with his opinion that this is a good movie. However, it somehow is a movie everyone seems to enjoy watching. It’s afterwards when I thought about it that I decided it was dumb.

I have not seen Hanna and I want to go now.

His comments on spam are superb and we all should read them.

And his criticism of Time Warner Cable is so appropriate. I have actually criticized Time Warner myself here before, about other issues. Interestingly, I have moved since, and I am now back with Cox. After getting used to Time Warner, I don’t like the Cox interface. Whine, whine, whine.

I read every word of this post by Card. You should too.