with Auren
Hoffman
Month of June,
2001
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Summation Push Auren Hoffman's Summation Push for
June, 2001 This issue:
* Solving the Traffic Problem: The World Would be a Better Place if we All Used Turn Signals
* Dee Hock's Management Rules
* BOOK REVIEW: Memos from the Chairman (by Ace Greenberg)
* Reader Responses
* Friends of Auren: Khalid Azim
* Summation Push Pick Links
* Hoffman Reading List -------------------------------- on your career... Ever hear of sport called baseball?
Baseball involves a bat and glove and is generally accompanied by a spherical red object called a "hot dog" and a translucent beverage called "beer" (not to be consumed while operating a metal box with four wheels called "Ford Bronco").
In baseball, players are compensated according to their expected performance. If you're really, really good -- you can make $40 million/year. If you're not all that great, barely carrying your own weight, you probably earn only $1 million/year. That's a 40X difference in compensation -- the difference between being a franchise player and being an average achiever. Let's apply this compensation model to the work world:
You have an administrative assistant who's not doing a great job, just 9-5, who doesn't really care -- makes $30,000/year.
On the other hand, you have the best administrative assistant since sliced bread -- totally organized, really dedicated, etc. -- and, of course, you pay that person a 40X difference on $30K -- or $1.2 million/year. Right?
Of course not, that's not the way it works. But maybe it should.
You're probably thinking -- "Hey Auren, the workplace is not like baseball!"
And you're right -- there are a lot of differences between the workplace and baseball. The main differences is that in the workplace, it's not appropriate to walk around in tight pants, spit, and scratch yourself all day. But I digress...
But there are some commonalities to baseball within our workplace. Think about salespeople.
In your organization you might have some salespeople making $50,000 while other salespeople are making $500,000. That's a 10X difference -- not as large as 40X but still very significant. Why do we pay salespeople this way? Because like baseball, sales is very measurable.
As companies start to be more sophisticated in measuring results, we are going to start to see results-oriented compensation to administrative assistants, accountants, programmers, teachers, marketers, etc.
An "A" player in an organization often times can produce the same results as three "B" players. And three "B" players can be produce what nine "C" players can achieve. So this means we should potentially have a 9X difference in compensation b/w the mediocre and the great.
Summation: Expect to see a compensation revolution happen over the next 10 years as we start to put more value on our human assets.
(What are your thoughts?
Write auren@summation.net) ----------------------------------------- -------------------------------- Send Summation Push to a colleague. -------------------------------- on the commute...
The world would be a better place if we all used turn signals all the time. Ever get in the left lane behind a car only to find out three feet from the busy intersection that the car wants to turn right? No signal, no warning, just stopping. Since the right lane is moving briskly, you're now stuck waiting for five minutes or more while the car attempts an impossible turn. I hate that. A call to all motorists -- if you happen to want to turn, try to signal at least 10 seconds before you get to the point where you want to turn. That way, other cars can adjust accordingly. Is that too much to ask? Lyphon Broderick, professor at Collatson University, conducted a study on urban traffic and found that traffic could flow easier by as much as 30%. 30%! That means that we could get from point A to point B in a congested city like San Francisco potentially 30% faster if we just all used turn signals all the time. Of course Lyphon Broderick doesn't exist (neither does Collatson University for that matter, which was entirely made up) -- but that's beside the point. Summation: Do your fellow human car drivers a favor, use turn signals. (Thoughts on any of these? Write auren@summation.net) -------------------------------- Share Summation Push. Forward it
to on management ... Last month I gave Dee Hock a call. Many of you may know Dee as the revolutionary that grew the credit card industry. He was the CEO of VISA International from almost its inception until the mid 1980s. (What do you like? Write auren@summation.net) -------------------------------------------------------------------- Send Summation Push to a colleague. -------------------------------------------------------------------- on management books ...
Memos from the Chairman Ace Greenberg, the famous Chairman of Bear Stearns, shares with us two decades of internal memos he has written to his employees. The memos, always humorous and always topical, discuss saving money, customer service, and the latest management fad of the month. Throughout the book, Greenberg takes advice from his fictitious advisor Haimchinkel Malintz Anaynikal. This book is a little bit wacky, but it has some really valuable insights to a CEO or a CEO-in-training. I highly recommend this book. (To see more book reviews, check out the Hoffman Reading List at http://www.summation.net/reading.html) ----------------------------------------- -------------------------------------------------------------------- The objective of Summation is to -------------------------------------------------------------------- READER RESPONSES: Regarding the commentary on "Is Athletics in Education a Good Thing", Steve Wright writes: "Thanks for the information - being a father of 5 girls (11, 9, 9, 6 and 7 months) this gives me some hope. My wife (UCLA 78 and I (UMass 76) run our own press relations business out of our home. Neither of us were academic stand outs, but we both were and, I guess, are athletic. Our 4 older girls are all good athletes and do well in school. But they will probably never be 4.0 or even 3.5 students. Does this "dumb down" where ever they will attend? What I think you are seeing here is not a preference for athletics over academics but a trend toward finding students who have passions and talents in an area beyond bubble test taking. Let's face it, University's are in the business to sustain their legacy the more athletics, actors, successful business people a university graduates the more endowment money comes their way. How many PhD's start a dot com? Not many. In summary, this news does not surprise me - it gives me hope - If you want to get really worked up you should look into getting into private schools in Northern California. Enjoy your stuff - keep it coming" Regarding Auren's Top 10 movies of all time, Ed Mohebi writes: "How can you have a top ten movie list without: -------------------------------- Send Summation Push to a colleague. -------------------------------- FRIENDS OF AUREN [this section updates you an interesting person
that is a member of Auren Inc] Khalid Azim, Vice President, Morgan Stanley Dean Witter
Khalid is a technology banker at Morgan Stanley Dean Witter in the Investment Banking division out of Menlo Park, California and is now moving back to New York City. His previous investment banking experience at MSDW comes in the Debt Capital Markets area. He served as the Asian Bank Capital Product Manager and worked in both Hong Kong and New York.
-------------------------------- Send Summation Push to a colleague. -------------------------------- THIS WEEK'S SUMMATION PUSH PICK LINKS:
* Yahoo News Alerts
(http://alerts.yahoo.com/) -- track a news topic and get automatic email notification when it appears in print. NOTE: Auren Hoffman works for BridgePath.com but the opinions expressed
herein are solely those of Mr. Hoffman. NOTE: You may reprint in full or in part (for
free) with permission from author. Auren Hoffman's bio can be found at:
(http://www.bridgepath.com/about/management.html/)
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