Think again: Management

Showing posts with label Management. Show all posts

Tuesday, August 3, 2010

Know your scarcity

The critical thing about the design process is to identify your scarcest resource. Despite what you may think, that very often is not money. For example, in a NASA moon shot, money is abundant but lightness is scarce; every ounce of weight requires tons of material below. On the design of a beach vacation home, the limitation may be your ocean-front footage. You have to make sure your whole team understands what scarce resource you’re optimizing.

http://freakonomics.blogs.nytimes.com/2010/07/30/know-your-scarcity

Wednesday, June 23, 2010

Creating value

Story 1:

How to sell off a dead donkey

A city boy, Kenny, moved to the country and bought a donkey from an old farmer for $100.00. The farmer agreed to deliver the donkey the next day. The next day the farmer drove up and said, "Sorry son, but I have some bad news, the donkey died last night."

Kenny replied: "Well then, just give me my money back."

The farmer said: "Can't do that. I went and spent it already."

Kenny said: "OK then, just unload the donkey.."

The farmer asked: "What ya gonna do with him?"

Kenny: "I'm going to raffle him off." (Note: To raffle is to sell a thing by lottery - draw lot - to a group of people each paying the same amount for a ticket)

Farmer: "You can't raffle off a dead donkey!"

Kenny: "Sure I can. Watch me. I just won't tell anybody he's dead."

A month later the farmer met up with Kenny and asked, "What happened with that dead donkey?" Kenny: "I raffled him off. I sold 500 tickets at two dollars apiece and made a profit of $898.00."

Farmer: "Didn't anyone complain?"

Kenny: "Just the guy who won. So I gave him back his two dollars."

*********************************************************************

Story 2:

A company has a debt of say 100 units and equity of 100. It splits up the company into 5 companies: 4 are debtless and the other takes all the debt. The one with excess debt shuts down and the other 4 companies take on more debt, do an IPO and prosper. Result: Tremendous value created for shareholders!

Moral: How many of you guys participated in things (eg:smsed to tv serials) thinking things are straight forward and were ignorant?

How come fooling people seems to be a very sustainable source of value creation?

I leave it to you to think it over...

Monday, May 24, 2010

Keep those flight tickets

When you get so much free spaces on emails, spare some space for those old emailed flight tickets in your inbox. You never know when it will come in handy.

Take for instance, my aunt's case. She has travelled to UK a few times to meet her son who lives there. And then one day, she lost her passport in India. She applied for a new passport and got it and applied for a new visa for seeing her son in UK. The UK visa team rejected her application on the basis that they were not sure whether she returned back to India during the vaildity of the visa term or stayed back as an illegal immigrant after the proposed visa duration stay as the new passport lacked the immigration check seal of departure from UK. Although the UK's immigration department has details of my aunt's checking out of UK, the country's system puts the onus on the foreigner to prove that they left the country in time and didnt violate any rules. This is one of the ways the government tries to permanently avoid other people coming into their country.

To top this, the British Airliner says they keep information of passengers for only three months and since the travel was beyond that period, they cant give them a copy of the ticket or the confirmation of travel. I wonder how these same airlines and airports would have all the required information and recorded video of the passengers if the enquiring people were some anti-terrorist detectives.

The saving grace was that my aunt's son had a email copy of the ticket lying somewhere in his inbox which he found out.

Moral of the stroy: Despite feeling sometimes that an email/document(air tickets, bank accoubnt closing letter, bank account statements after closing a bank account) is a piece of junk i have to live with, one may never know when it will be a life saviour and where.