Friday, June 7, 2013

Has Apple Stopped Innovating?

MG Siegler:

One question during the D interview was about if Apple had stopped innovating. After all, it’s been so long since the last truly innovative product, the iPad, came out. Um, the iPad came out three years ago. Three years! Guess how much time there was between that product and the last “truly innovative” product, the iPhone? Three years. Guess how much time there was between that product and the last “truly innovative” product, the iPod? Five and a half years.

Newsflash: true innovation takes time. Apple has by far the best track-record in recent history when it comes to such products. But how quickly we forget how long each one took to come to market.

Thursday, June 6, 2013

Why CEOs Make So Much More Than You Do

Adam Davidson:

A talented marketing director or chief engineer can help a company thrive, but the next-best candidate will probably be successful, too. A great C.E.O. ... is many times better than an average one.

Tuesday, June 4, 2013

What Happens When the Government Makes Venture Capital Investments Without Demanding Venture Capital Compensation


Scott Woolley:

When the government’s negotiators started hammering out the details of the Tesla investment in mid-2009, it was obvious to both sides that the feds were in a position to name their terms. Tesla’s management knew that if they couldn’t get the government’s money at 3 or 4% interest, their next cheapest source of capital would cost 10 times more, a whopping 30 to 40% annually. . . .

Personal loans made in 2008 by Elon Musk, Tesla’s co-founder and CEO, provide a telling contrast. Musk received a much higher interest rate (10%) from Tesla and, more importantly, the option to convert his $38 million of debt into shares of Tesla stock. That’s exactly what he ended up doing, and the resulting shares are now worth a whopping $1.4 billion—a 3,500% return on his investment. By contrast, the Department of Energy earned only $12 million in interest on its $465 million loan—a 2.6% return.

The government had huge leeway to demand similar terms as part of its loan, given the yawning gap between its interest rate and the cost of Tesla’s next-best source of capital. The government was ponying up more capital than all of Tesla’s previous investors combined. At a bare minimum, the Department of Energy could have demanded a share of the company equal to the 11% Musk received for his $38 million loan the year before. Such an 11% share would be worth $1.4 billion to taxpayers today.

Friday, May 31, 2013

Why do we let the Librarian of Congress decide which uses of technology are legal?

Derek Khanna:

The last major revision to copyright law was the Digital Millennium Copyright Act (DMCA), passed in 1998. That was three years before the iPod, six years before Google Books and nine years before the Kindle. Thanks to heavy lobbying from established industries, the DMCA restricts entire classes of technology and hampers innovative products and services from being offered to the public. . . .

The DMCA empowers the Library of Congress to grant exemptions, which must be renewed every three years. Unfortunately, the Library’s decisions have been all over the map. In the last six years, cellphone unlocking was legal. In the current cycle, which lasts until 2015, unlocking will be banned. Last year, jail-breaking your iOS device in order to run software not authorized by Apple was illegal. Now it’s legal—but only for iPhones, not iPads, and only until 2015. Why do we let the Librarian of Congress decide which uses of technology are legal?

Monday, May 27, 2013

Tax Avoidance vs. Tax Evasion


NYT:

No taxpayer is obliged to pay the government a penny more than the law requires, the Supreme Court said in 1935. But the court also said no corporation was permitted to use “elaborate and devious” means—known nowadays as “gimmicks”—for the express purpose of evading taxes. That ancient tension between legal tax avoidance and illegal tax evasion, and between a corporation’s self-interest and the fundamental requirements of a government and its citizens, remains at the heart of the American system.

Or, more memorably, Avery Tolar to Mitch McDeere in John Grisham's Class Action:

The difference between tax avoidance and tax evasion is:

a. whatever the IRS says
b. a smart lawyer
c. 10 years in prison
d. all the above

Wednesday, May 15, 2013

Why Al Gore Is Dangerous

New York:

“I miss most of all being able to grab the levers and push the buttons and have an impact on policy and lives.”

How Facebook Uses Semantics

The Atlantic:

They even take care not to create any emotional friction as you enter your life details into Facebook. One fantastic example that Dougherty-Wold gave me was adding a "life event" on Timeline. "There's a menu of those events and a typical menu would list the options alphabetically," she said, "but if we did, you'd have divorce sitting on top of engagement. The content strategist who worked on that menu had a tremendous amount of empathy." The list was reordered to follow the arc of a relationship. "Just by not making you think about divorce at the same time that you're thinking about engagement," she concluded, "we're getting out of your way."

Monday, May 13, 2013

Maxine Waters Wants You to Lobby Her


NYT:

She even suggested the bankers hire new lobbyists to better represent them. "Influence us," Ms. Waters said softly, reminding them of her new role as the ranking Democrat on the House Financial Services Committee. "Help us understand the intricacies of your business."

If the IRS Isn’t “Good at Math,” What Is It Good For?

In Washington, a “gaffe” takes place when someone accidentally tells the truth. Last week, a senior Internal Revenue Service official breathed new life into this axiom. “I’m not good at math,” confessed Lois Lerner as she tried to summon a statistic on a conference call with reporters.

Seriously? The woman who oversees tax-exempt organizations at the IRS has a fuzzy relationship with basic arithmetic?! No wonder so many small businesses operate in fear of the taxman.

Pair this news with the revelation that the agency has been applying special scrutiny to groups that oppose the administration, and it’s hard not to wonder, If the IRS isn’t good at math, what good is the IRS for?

Tuesday, May 7, 2013

How Sports Dominate College

Joe Nocera:

If you are a college chancellor or president, you can’t delegate when there is a problem in the athletic department. “The governing board, the newspaper, the fans, the faculty, they all expect you to sort it out,” he said. He was spending, literally, half his time dealing with the football team. Yet he had no real experience with the business of college athletics—nor, for that matter, do most college presidents.

Sunday, April 14, 2013

How Wayne LaPierre Became Wayne LaPierre


The New York Times:

What his critics often overlook is the iron relationship Mr. LaPierre has forged with many N.R.A. members.

Week after week, year after year, he is on the road, traveling to gun shows and hotel ballroom fund-raisers, where he dispenses affirmation and absolution, telling firearms enthusiasts that their N.R.A. ties have nothing to do with violence and everything to do with freedom.

The attendees form a ready-made base that Mr. LaPierre can draw on whenever he sees a threat to gun rights, and after spending much of his career building the membership—now nearly five million, the group says—he knows it well.

Tuesday, April 9, 2013

Why "Mobile-First" Should Be Your Default Philosophy

If it's important enough for the world's biggest social network, it's important enough for you:

[Facebook's new] apps are part of what Facebook executives say is a transformation into a “mobile first” company. Developing mobile products has been made a priority, they said in recent interviews, and every team inside the company has been reorganized with the goal of inserting mobile into its DNA.

“We have basically retooled and focused the company around mobile,” said Mike Schroepfer, vice president for engineering of Facebook. “It’s been a huge change.”

As part of the reformation, product teams have been arranged so that they now make mobile versions of new features at the same time that they are developed for the main Web site. Before, the company would make new features for the Web site, then a core mobile team would follow up with translations for mobile devices.

Facebook is also trying to spread mobile expertise throughout the company. Its top engineers hold training sessions every week for 20 employees at a time, teaching them how to program for Apple and Android devices. About 100 engineers are now working on Facebook’s mobile products, according to Cory Ondrejka, chief of mobile engineering.

With the training, the company expects to have created 200 new mobile engineers by the end of the year, Mr. Schroepfer said. Soon these classes will be open to any Facebook employee who wants to come, including those from areas like marketing and design.

Monday, April 8, 2013

Gamify the System: How to Mobilize Your Online Supporters

From a recent report from the Joyce Foundation:

Working at the Republican National Committee, and later in the software we designed at our agency, we worked to quantify positions on the ladder of [member] engagement by assigning scores to each online activity. Opening an e-mail might be worth one point, a click through might be worth three, a “like” on Facebook five, a donation fifty, and so on. This allowed us to approach each person with customized communication directing them to the next rung up the ladder. . . .

Having the right database and measurement tools will help illuminate this process. Too many organizations invest in database solutions centered exclusively around fundraising needs, which don’t allow for much analysis of online objectives, like matching an e-mail address to a Facebook profile to count the number of times the owner has “liked” your content. You can also tie together activity on other social networks like Twitter, e-mail opens, web form submissions, and donations.

When it comes to assessing who will become a donor, the person’s past behavior is often more important than their stated preferences. Fundraising asks driven by data about past activity are especially powerful. E-mails that cite earlier donation amounts and ask users to double down their support have boosted giving many times over, as have those that target non-donating “slackers” by citing their lack of previous action.

Having the right data and analytic tools is the essential foundation of an effective program to move people up the ladder and turn slacktivists into activists.

Thursday, April 4, 2013

Are Hashtags Useless?



Yes and no, according to this provocative article by the social media editor of the New York Times.

Yes

If you’re tagging something big like #FreeEnterprise, #SuperBowl, or #MarchMadness, “you’re calculating that there will be a lot of people searching for [this term], but not so many using it that your tweet would be overwhelmed. It’s a narrow set of circumstances.”

What’s more, even if you don’t tag the given phrase, your tweet can still show up in a search for the given term.

“Does this mean the millions of Twitter users who deploy such hashtags to increase their reach are all wrong? Well…yes.”

No

A smarter use of hashtags, the article advises, pertains to a limited set of circumstances, like a conference or initiative:

“They’re great for gathering small groups of people; at a conference, there’s no better way to connect with other attendees and read brief summaries of sessions. When kept to a small scale, they can ably perform their service as a filter of relevant tweets (#EastVillage is more manageable than #NYC).”

The bottom line: “We need not banish the hashtag, but let’s start putting more thought into when we’re using it.”

If you get a chance, the article is worth reading in full.

Monday, April 1, 2013

Save Google Voice!

Farhad Manjoo:

I’m deeply invested in Google Voice—I use it as my primary phone number, so if it were to shut down, I’d have to send new digits to all my friends and professional contacts. Why am I worried that it will vanish? Because Google Voice has no clear business model. Google won’t take my money for it. It’s been years since the company updated the service in any significant way. And Voice loyalists have alerted me to troubling warning signs—last year, for instance, Google moved a link to Voice from the drop-down menu labeled More in its navigation bar to a deeper, nested menu labeled Even More. Was this change significant? I have no idea. But it’s not encouraging—just troubling enough that I should probably begin to look for alternatives from companies that will take my money.

Friday, March 29, 2013

Does House of Cards Contain a Libertarian Leitmotif?



It does indeed, as viewed through the prism of public choice theory.

David Carr:

People in government like to think they answer to greater gods and journalists like to think that they are on a mission from god, while nonprofits act as if they were always on the side of angels, when in fact, all are capable of moral mis- and malfeasance when it serves their ends. If you think about it, only Remy Danton, Mr. Underwood’s former staffer who has gone over to the lobbying side, is really consistent in terms of who he is and what he represents. As a lobbyist and a fixer, he understands that brute force and large sums of cash, strategically applied, can melt away the pretense of civic-mindedness and reveal the self-interest that lurks around every corner in the capital.

Wednesday, March 27, 2013

Seriously? This Is the Best Argument You Can Muster?

“If same-sex marriage becomes a cultural norm, Mr. Brown warns, heterosexual couples will no longer have preference over gay men and lesbians in adoptions, schoolchildren will be taught that same-sex parenting is normal, and those who oppose it will be labeled bigots.”

Well, yes—that’s the point!

The 2 Types of Ads

Farhad Manjoo:

There are generally two kinds of marketing messages in the world—“direct-response” and “demand-generation.” Direct ads are those that call on people to take an action more or less immediately—click to visit a site, call an 800 number, order something from a catalog. Google’s Adwords, the little text ads that show up alongside your search results, are a form of direct ads. Adwords are supremely measurable—advertisers pay Google for clicks, and they can track how many of the people who click end up buying from their site. Adwords are also extremely effective; because they’re shown to you when you’re looking to buy something (when you have “high purchase intent,” in the jargon), people who click on them frequently end up buying. Consequently, Adwords have made Google the most successful advertising company in the history of the world.

Yet in the larger advertising industry, direct-response ads like Google’s are something of an anomaly—a way to sell certain products at certain opportune times, but not the way that most marketers approach their jobs. Instead, the vast majority of the advertising world is structured around “demand generation.” These ads aren’t trying to get you to take some action right away. Instead, they’re trying to plant an idea in your head—to introduce you to a new product, to get a name stuck in your head, to improve how you feel about a company. (That’s why demand-generation ads are also known as “brand advertising.”) Other than infomercials, pretty much every ad you see on TV is a demand-generation spot. That’s true of ads in print magazines, on the radio, at bus stops, on billboards and most of the banner ads on your favorite news websites, too. According to some estimates, demand-generation ads account for more than 80% of the money spent on ads.

Tuesday, March 26, 2013

How to Hire


From an interview with Kris Duggan, the C.E.O. of Badgeville, which designs game-based programs for businesses:

Q. How do you hire?

A. The most important thing is to have a framework that everybody in the company knows. So we said: Let’s just come up with something very simple that is easy to understand and that people can use every day in their interviewing skills.

The first is to hire people who are experts in their domain. It’s really about excellence. So I will ask people, “Are you an expert in your field, and if you are, help me understand your field.” Then I ask, “How did you acquire this knowledge?”

The second thing I’m looking for is “sparkle.” Is this person contagiously enthusiastic? You may be an expert in your field, but if you don’t communicate well, or if you don’t get people excited, or you’re not passionate or enthusiastic, that’s going to be a hindrance. And it’s not the difference between being introverted or extroverted—you can just see it in somebody if they have the magic.

The third thing we look for is people who just get stuff done. We’re very focused on metrics—we have goals and controls, and everybody in the company has them. We even have a rating system we use to score employees, from 1 to 5, based on their “getting stuff done” index every quarter. People take the scoring concept very seriously, and really like the accountability and the transparency around some of these things—and the fact that they’re empowered to get stuff done.

The other critical thing we’ve done in our hiring process is to require every candidate to do homework. It varies by department and by function, but every hiring manager has to have a homework assignment for open positions. We just hired a director-level marketing position, and they had to come in and present their plan for what they would do for the company to drive their marketing strategy.

I’ve found that there are so many biases that we create or imagine when we’re going through the hiring process—this person came from that school or they seem very polished, whatever the biases might be. But when you have them put pen to paper, and compare that against a field of candidates, you get a much clearer picture of how they think and work.

We also don’t set deadlines for handing in the homework. We let them set the deadline, but then we track very closely how they perform relative to that. So we’d never say, “You owe us the homework by tomorrow.” We would say: “We’re very interested in you, and we’d like you to do some homework, and here’s the assignment. Do you have any questions about that? And when would you like to submit the homework?” That’s one way we can test for their behavior—do they get it done on time, or do they make excuses because it’s late? What I’ve found from all the interviews I’ve done in the last 10 years is that whatever nagging suspicion you have during the interview process about their behavior will be magnified 10 times after you hire them.

Monday, March 11, 2013

Matt Lauer Was Fired Repeatedly From Different Talk Shows


From Howard Kurtz's profile:

When Lauer was in his 20s, he was canceled or fired from talk shows four times in a row, in New York, New Jersey, Philadelphia, and Boston.

Related: How Ezra Klein Turned Failure Into Success.