Worth reading. Especially if you are in consulting. I like the beginning of the book especially, and will be turning back to some of those pages for r...moreWorth reading. Especially if you are in consulting. I like the beginning of the book especially, and will be turning back to some of those pages for reference.
Thinking logically The book starts strong by introducing "MECE: Mutually Exclusive Collectively Exhaustive." I use it often in my teams. Think of it as building a decision tree, where you cover every option, and none are overlapping. Each branch in the tree also has more MECE sub-branches. When deciding or investigating something, draw the tree on a whiteboard, and walk everyone through the options, and sub-tree options until you have a decision, or clear actions to take. Very logical. Be sure to encourage other people to contribute to the branches, and if you are leading it, ideally you team will volunteer the branches, and then they have more commitment to the options.
Or, as Wikipedia says:
[MECE] says that when data from a category is desired to be broken into subcategories, the choice of subcategories should be 1. collectively exhaustive -- i.e., the set of all subcategories, taken together, should fully characterize the larger category of which the data are part ("no gaps") 2. mutually exclusive -- i.e., no subcategory should represent any other subcategory ("no overlaps")
This is desirable for the purpose of analysis: mutual exclusivity avoids the risk of double counting information, and collective exhaustion avoids the risk of overlooking information.
Two areas for MECE thinking are in logic-trees and issue trees.
Logic trees help you identify components of a problem. Start at the 20,000 foot view and move progressively downward. You may want to build multiple trees, for instance by business unit (organizational hierarchy) and functionally (production, sales, marketing, etc.) to see which leads you to the next step, the hypothesis.
Form a hypothesis of what component of the logic tree may be causing the problem. Run it by the Quick and Dirty Test: ask what assumptions you are making that must be true. Are any false? If it passes the QDT, gather data and do analysis to disprove it. This is the same as the scientific method. If you fail to disprove it, you may be on to something. Predict what could happen if the identified root cause was changed.
Issue trees let you rigorously test the hypothesis. They are different from logic trees. Logic trees are a hierarchical grouping of elements. Issue trees are the series of questions or issues that must be addressed to support or disprove a hypothesis. It becomes you roadmap for analysis.
Presenting Present with the conclusion at the start. This was a good lesson. Do not use inductive reasoning to build up from details into a specific conclusion for your audience. They may already agree with it. You would then waste their time. Instead make you conclusion, and progressively drill into details, broadly covering each level before drilling down further. Stop/skip forward if they do not need the convincing. (A refresher on inductive/deductive reasoning).
Presentations are all about getting buy-in. It is important to "pre-wire" the meeting so that there are no surprises, and people already know your conclusions. The act of pre-wiring will identify gaps you need to work on, or build allies for you proposal.
Interviewing clients/stakeholders is a common activity I have done at ThoughtWorks. The authors advised scheduling time with people, and sending them an agenda. This lowers their apprehension of why consultants want to talk to them. Also at the end, during small talk before you walk out, ask "is there any thing else we did not cover that you think we should?" You've built rapport by now. Their answer can uncover important, previously unmentioned issues.
Note: as a software engineer, I appreciate the MECE thinking style for its logic. Also, it is the exact way we approach performance tuning an application. Think about the logic tree of slow spots. Build a hypothesis. Test it by profiling the running program under load. Let the data of time spent in each component show the root cause. (less)
I started reading some books about the Global Financial Crisis, and realized I did not understand enough about the finance industry. I first invested ...moreI started reading some books about the Global Financial Crisis, and realized I did not understand enough about the finance industry. I first invested in stocks when I was 13 with my grandfathers help, and in high school used to read lots of investing books. But, I lost interest since then and never understood how all the pieces fit together inside a bonk. Reading this gave me a better idea of the industry, and was a very fast read (about 3 days).
I enjoyed gaining the perspective of how the following areas interrelate:
* Commercial Banking, Investment Banking, and Asset Management
* Equity and Fixed Income markets
* Stock and Bond Offerings
* M&A, private placements, and reorgs
* Roles of: Corporate finance, sales and trading, research, and syndication
Note: the edition I read was written in 2005, so it does not include the more recent "exciting" events. I'll need to catch up with those in the next book.
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This book is *awesome*! Why? The author takes a short story, "The Library of Babel," by Jorge Luis Borges and analyzes it along many differe...moreThis book is *awesome*! Why? The author takes a short story, "The Library of Babel," by Jorge Luis Borges and analyzes it along many different mathematical dimensions. The results are stimulating and accessible to non-mathematicians. The story is about a library, which is composed of:
An indefinite number of ... hexagonal galleries. In the center of each gallery is a ventilation shaft, bounded by a low railing. ... Twenty bookshelves ... line four of the hexagon's six sides... One of the hexagon's free sides opens onto a narrow sort of vestibule, which in turn opens to another gallery, identical to the first -- identical in fact to all.
What's the implication of this? The author, William Goldbloom Bloch, takes us through combinatorics, information theory, real analysis, topology and cosmology (a tough chapter), geometry and graph theory, and more combinatorics. He explains things in an easy to understand way, and then if you want more, has "Math Aftermath" sections that get more in depth.
In the end, he gives a long list of suggested readings. I have started a list here http://amzn.com/w/236UZ2PNNR3W2. What math books do you all suggest?(less)
A riveting book and one that gave me a deep sense of appreciation and admiration for the hundreds of million of Chinese people who lived through the 1...moreA riveting book and one that gave me a deep sense of appreciation and admiration for the hundreds of million of Chinese people who lived through the 1920's to 1970's. By sharing the life stories of three generations of women, herself included, Chang takes you through China's horrendous political upheaval over the last century.
I'm preparing to move to China, and reading this startles me as I realize many of the people I will meet also experienced famine as well as the melting of all sorts of iron, even cooking pots, to increase the country's steel production in the Great Leap Forward from 1958-1961. Additionally, more will have survived the Cultural Revolution from 1966 to 1976, which attempted to purge the country of capitalism, "class enemies", and independent thought. Schools largely disbanded and children denounced and physically brutalized teachers. Chang brought out the events of their lives with vividness and humanity that kept me wanting to read more.
I feel a great appreciation for my opportunities growing up when I read as Chang reflects her youth including as the Red Guard, full of young people, exhorted terrifying power:
"A schoolfriend of my mother's was hounded to suicide because she wrote 'Heartily love Chairman Mao' on a wall poster with one brush stroke inadvertently shorter, making the character 'heartily' look like the one meaning 'sadly.'"
Just one of many examples, which, to the unfamiliar, will grab you and pull your imagination into that era.
As Jung Chang reflects upon the death of Mao in 1976, it gives us today a perspective on governments and society:
[Mao] ruled by getting people to hate each other. In doing so, he got ordinary Chinese to carry out many of the tasks undertaken in other dictatorships by professional elites. Mao had managed to turn the people into the ultimate weapon of dictatorship. That was why under him there was no real equivalent of the KGB in China. There was no need. In bringing out and nourishing the worst in people, Mao had created a moral wasteland and a land of hatred. But how much individual responsibility ordinary people should share, I could not decide.
"The other hallmark of Maoism, it seemed to me, was the reign of ignorance. Because of his calculation that the cultured class were an easy target for a population that was largely illiterate, because of his own deep resentment of formal education and the educated, because of his megalomania, which led to his scorn for the great figures of Chinese culture, and because of his contempt for the areas of Chinese architecture, art, and music, Mao destroyed much of the country's cultural heritage. He left behind not only a brutalized nation, but also an ugly land with little of its past glory remaining or appreciated."
This is both a terribly sad and inspirational book.It shows the love of a well off family under forced labor, denouncements, beatings, refused medical care, and separation, but through that Chang brings out a hopeful reminder of the capacity of the heart to preserver and triumph.
I highly recommend this book for a page turning experience to learn about the modern history of China. And, I request any other to-read recommendations as I prepare to move there in the next few months. I am looking at: China Road, Battle Hymn of the Tiger Mother, Mao: the Unknown Story (also by Jung), The Party, Life and Death in Shanghai.
Cool examples abound, such as crunching numbers in credit card organizations to predict the likel...moreFun. Fun read (or audiobook in my case).
Cool examples abound, such as crunching numbers in credit card organizations to predict the likelyhood of divorce. (Because, hey, that changes the credit risk profile, so prediction would be valuable).
A light read. After it I'd rather do some of my own number crunching, instead of just read about it. (less)
Somewhat challenging for me to read since it is "soft/touchy-feely". But a coworker recommended it. The author takes a artistic/poetic turn ...moreSomewhat challenging for me to read since it is "soft/touchy-feely". But a coworker recommended it. The author takes a artistic/poetic turn at times which isn't my style. However, some of the key content is insightful. The delivery drops it two stars.
The book posits a way to re-frame how we view work relations, and the invariable associated struggles and frustrations. Perhaps your least favorite people are not dumb or incompetent, it only appears so because of their power and position in the organizational system. One's role may make them seem inflexible or incompetent, rather than that is how they are as a person.
A whole bunch of techniques are covered through diagrams. For instance, if you're a "middle" you need to connect the two other parties and get out of the way yourself. Common sense, but gives you a new set of vocabulary to look at the people around you. Worth a few hours of skimming.(less)
Very interesting discussion of how subsidized cotton from America is sent to China for creating a T-Shirt. (There might be a few more round trips, i.e...moreVery interesting discussion of how subsidized cotton from America is sent to China for creating a T-Shirt. (There might be a few more round trips, i.e. fabric is created abroad, and then the shirt is made in Mexico, and then it is printed back in Asia). Eventually, the hypothetical same T-Shirt returns to Florida to be sold to tourists, until eventually it is discarded at a thrift store donation box. But the story is not over. Due to the low cost of empty shipping containers leaving the US, our T-Shirt ends up creating more profit through resale in Africa.
I listened to the audible audiobook version. (less)
A highly entertaining read where Matthew Stewart dismantles the Management Consulting industry. For you with experience in consulting, parts of this a...moreA highly entertaining read where Matthew Stewart dismantles the Management Consulting industry. For you with experience in consulting, parts of this are hilarious as Stewart chronicles both the imploding of the consultancy he helped create, and the overall history of the industry.
One by one, he tears apart Fredrick Taylor (the father of "scientific management"), Elton Mayo (of the "famous" Hawthorn Effect), Management Consultants, Strategy (as a science), popular Management Gurus, and offers a harsh critique of MBA's in general. His main premises is that "Management" is not a profession on the level with Medicine or Law, however management education through business schools have attempted to professionalize it. And to that end, they have manufactured "science" (in a very non-rigorous and untestable sense), truisms, frameworks, and case studies.
Here are a few highlights. I didn't agree with all that he had to say, but I did enjoy reading it. I was laughing out loud towards the end as he details how his fellow partners are embroiled in litigation with him as he tries to sever all ties. Stewart is genuinely funny, giving characters nicknames such as "The Prince of Darkness", "The Troll," "Dr. Bob" the corporate shrink, and others.
As for management consultants, he had less-than-flattering quotes: "[C]onsultants often serve not to provide new knowledge to their clients but merely to communicate ideas already formed. In many instances, our work amounted to harnessing work performed in one part of an organization and then packaging it all as our own work for the benefit of another part of the same organization."
I can't speak for all organizations, but I am extraordinarily fortunate to say at ThoughtWorks (my employer) this has never been my case. We are not a traditional management consulting McKinsey style strategy consulting firm, true. However, we do have consulting projects, some the strategic management consulting types. I've seen us bring our outside expertise and influence and avoid acting solely as grease in the wheels. Becoming grease may let others bill lots of money, but isn't very intellectually fulfilling.
Even better, if you have worked in a traditional pyramid style company, (of which ThoughtWorks is very, very, very, very much not) he has this gem to explain it: "It's like being stuck in a dungeon with a bunch of rats and a giant block of cheese. All the rats keep climbing the cheese, two years at level one, two years at level two. The threes shit on the twos and the twos shit on the ones, and everyone shits all the time on the rats at the bottom. All they care about is rat-face-time. As in, please-sir-would-you-stick-your-rodent-butt-closer-to-my-face time. You keep going up until one of the other rats bites your ass off." Up or out. Several friends of mine elsewhere have shared this is a fairly accurate description.
Strategy. He also tears apart Porter and his Five Forces [3]. Stewart claims all business strategists describe strategy in hindsight (not so useful if you want to implement "strategy" for, you know… the future). I have a little bit of a hard time accepting that all of modern strategy is hogwash, as instead I think while bounded in utility, different frameworks help one to position a problem and look for solutions in diverse ways.
Due to business schools' roots in Taylor, Mayo and others that he sequentially defuses of all credibility, the author also suggests that the fundamental underpinning of MBA's are shaky. The academic and scientific rigor is weak, and the content is easily grasped by otherwise intelligent people.
"After 100 years of fruitless attempts to produce such a discipline, it should be clear that [Business Management] does not exist. preparing managers to manage, in fact, is not different from preparing people to live in a civilized world. Managers to not need to be trained; they need to be educated. And for that purpose, although a certain amount of study of business-related subjects may prove useful, the business schools as they are presently constituted are at best superfluous."
A jaded view? Yes. But also very fun. The best parts is the parallel narrative that progresses through the book about his firm. I didn't talk about that much, because I don't want to spoil anything, but it is very fun. Especially, when their acquiring company's CEO steps down because he wishes to promote full time his beliefs in UFO's and alien-human technology transfer. Serious. [4] This guy had a crazy consulting journey, and has a great style of writing about it.
If you are interested in this book, first read his article on The Atlantic [1], which gives you a taste of the content here. Second, check out the WSJ book review [2], by Philip Broughton, author of a similar book that I recently read.
[1] http://www.theatlantic.com/magazine/arch... [2] http://online.wsj.com/article/SB10001424... [3] Michael Porter, of Harvard. Father of the 5 Forces, which are: (1) the bargaining power of suppliers, (2) the bargaining power of buyers, (3) the rivalry among existing firms, (4) the threat of new entrants, and (5) the threat of substitute products. Extremely influential, he also advocated all strategy aims for a single, measurable goal: excess profits. (Unsurprisingly, Stewart takes criticism of this). [4] http://articles.sfgate.com/1999-01-09/ne...
It is an easy read with interesting examples. If you dislike the
title, consider how the world is political, and it is in you interest
to kn...moreIt is an easy read with interesting examples. If you dislike the
title, consider how the world is political, and it is in you interest
to know the power games other people will play.
A few highlights:
* When Keith Ferrazzi (author, CMO, CEO) was offered a position at
Deloitte, he insisted in seeing the "head guys." He met the NYC chief,
Loconto, over dinner and Keith said he would accept if the two would
have dinner once a year at the same restaurant." This was a gutsy
move, but gave him influence at a very high level. All because he
asked. What could you have asked for?
* Ishan Gupta is an entrepreneur from India who positioned himself
with compiling a book of major Indian entrepreneurs. He had the
founder of Hotmail, the Indian president Kalam, and over a dozen
leaders contribute to the book. How? His pitch was as a fellow
entrepreneur and IIT graduate, he appreciated their courage, and said
no one would take a book by him seriously, he wanted their help to
write just a few pages or hundred words with key advice. He packaged
the request brilliantly, and almost all accepted. Asking for help is
inherently flattering. He leveraged his experience to write something
with a positive social implication. Then gained influence
with very big hitters, and 'jumped up a weight class.'
* Confucius said, 'Real knowledge is to know the extent of one's own
ignorance.' While this seems somewhat out of place in this book,
remember if you gain more power, you will change. It is best to not
become full of yourself.
* Stay focused on the outcomes you are seeking, and do not get hung
up on people and their idiosyncrasies. You can not and will not please everyone.
* Be able to act. As in acting, theatrics, Hollywood. If you are
'angry' don't always really be angry, as you can act with emotion,
skipping over facts, weaken you position, and alienate people. I have
made my worst mistakes when acting out of emotion. You can use
emotions effectively to lead a team; however, if you can have the
passion of emotion, without the irrationality, it is much
better. Thus, learn how to act. It disconnects the irrationality. When
I worked at FeedBurner, Dick Costolo was CEO there and he came from 10
years of stand up comedy. Extremely useful for his outward influence
(now CEO Twitter), and inward motivating employees.
* Synchronize the 'voice' of a team's many leaders. I have had huge
team problems because the peer group of senior leaders all had
different opinions about the vision and priorities. If one of us had
suggested a simple, quick, weekly breakfast or lunch meeting next door, we
would have been on sync. It would have boosted the team's morale and effectiveness.
* Oliver North vs Donald Kennedy's congressional testimonies suggest
theatrics (righteous anger vs shame and timidity) is a significant
factor for how people are judged. This was an "aha" moment. Senior
leadership is a lot of acting. CXO's may not see some employees but
once a year. The ability to turn on the energy and optimism (acting)
is crucial to leave strong, lasting influences in people.
* One comical specific claim was that "moving your hands in a circle
or waving your arms diminishes how powerful you appear. Gestures
should be short and forceful, not long and circular." Probably
true. How you carry yourself influences how you are viewed. Are you
the carefree person, consistent worker, angry person, goofy one, solid leader, etc.?
* Take you time in responding. Flustered or unsure people are
marginalized. Related to acting. When choosing between emotions or a
slower response, always choose the slower, more deliberate
response. (My editorializing).
Not amazing, but short and I finished it. I think I can only read a
small number of these kinds of books a year. Now I am ready to read
more math books.
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A fast read about international development's history and future. The statistics are staggering. "10 million people a year are displaced due the ...moreA fast read about international development's history and future. The statistics are staggering. "10 million people a year are displaced due the construction of dams and urban transportation systems. Compare to 12 million annually with wars and other 'disasters'." I enjoyed this book, read it in about a week, and recommend it as an introductory text. It discredits the historical Marshall Plan style of development, which has attempted to funnel infrastructure investment in a massive global scale. Post-WW2 Europe developed so quickly because of an educated cadre waiting to run it, eager human capital, and an abundant educated workforce. This is not present in the poorest of developing nations. Maggie Black cites an epic failure of mechanizing agriculture in Tanzania, Uganda, and Zambia when tractors suffered from rapid breakdowns, no spare parts, misuse for private purposes, and endless other problems. (Great life lesson: you have to meet people where they are, rather than where your biases initially lead you).
Black covers aid with its many failures, some successes such as smallpox eradication, but overall underwhelming performance in ending poverty. She summarizes aid as generally ineffective: "the machinery of official aid is not designed to address the poverty of people, but the state of nations." Next she moves to the World Bank/IMF and their program of "structural adjustments," and the "Washington consensus." Both were macroeconomic agendas pushing prudent fiscal and monetary policies, inflation control, and free markets. Seemingly wise ideas, but which often resulted in great challenges for the debtor nations: cut services and subsidized foreign commodities competition, and lost local jobs.
- Today a third of the world's population - about 2 billion people - still remain outside the modern economy or survive at the edges. - Circa 2007, two thirds of Indians are still involved in agriculture; in China she claims it is 44%. - In 1960 the income gap between the fifth of the world population in the richest countries and the fifth in the poorest was 30 to one; by 1997 it was 74 to one. - As of 2004, 1.1 billion people were without a supply of safe water, and 2.6 billion without a proper means of sanitation. And don't think just digging wells or creating a water utility will solve this.
What is her summary? "Less effort should be put into grand international initiatives - 'Marshall Plans for Africa' and achieving the Millennium Development Goals - and more into making things work on the ground." She goes into detail of successes where local scale efforts have still been able to assist millions of people. These, she posits are the keys to future success in international development, as opposed to the "bigger picture, more western perspective" of macro-economic adjustments.
The book is interesting in the treatment of details, and in the journey it takes the reader on. (less)
Interesting eye inside the very powerful program. However, the author is rather skeptical. This both tempers the allure for the school, as well as pro...moreInteresting eye inside the very powerful program. However, the author is rather skeptical. This both tempers the allure for the school, as well as provides a firm dose of reality. Recommended to learn more about one person's experience.(less)
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