What Are Vendor – Client Relationships Like These Days?

Rather than reading my take on this balancing act of graft vs PC norms… allow me to put you into the shoes of a few service providers that deal daily with people who want the moon and stars but insist on running their departments on pre-established budgets.

Enjoy the video and let us know if we might be able to help you implement processes to minimize such nonsense in your sales & purchasing cycles.

httpv://www.youtube.com/watch?v=R2a8TRSgzZY

Is Identity Theft a Real Threat?

Friends, this article is serious. Based on a study conducted by Paypal in 2008, Internet users in the UK are much more likely to be victims of identity theft than their peers in both Europe and the USA.

The recent survey by PayPal and Ipsos Research of 6,000 online shoppers in 6 countries revealed that 14% of respondents in the UK admitted that they have had their identities stolen online. This can be compared with only 3% in Germany. More than half of respondents said that they used personal dates and names as passwords, making it relatively easy for hackers to gain access to accounts through manual efforts of trial and error. The French are particularly bold – two-thirds of the respondents claimed to use easily guessed passwords such as birthdays and telephone numbers but the icing on the cake was that over 80% of the French post this sort of personal data on social-networking sites. Unfortunately, the hackers enjoy trolling the very same social media sites too.

The article did not reveal how users could protect themselves so, in an effort to provide some form of public service… here are my recommendations:
1) Do NOT reveal detailed personal information on a public internet site such as myspace, facebook etc
2) If you have already ignored recommendation number one, check all of your passwords and ensure that they are at least 10 digits long and that they contain a combination of uppercase and lowercase letters, numbers and symbols such as # $ % ( ^ ) etc.
3) a strong password is something like RtY7f*e#2U and a weak password is something like 041277. To check the strength of your passwords, try using the Password Meter – you can even download it to increase your security based on what I am about to reveal to you in the next recommendation.
4) You may have already inadvertently downloaded some sort of spyware that is recording what you type and then transmitting the result to a hacker, a hacking community or an online thief. If you are running Microsoft windows without anti-virus or firewall protection, you might as well raise the white flag and surrender today. Even with both anti-virus software and a leading firewall installed, if you were teased into clicking on some sort of advertisement that downloads a file or more to your computer, chances are reasonable to good that your machine has been infected. One last comment on this topic before we move on – many people have a free version of an anti-virus software installed and they somehow manage to forget to update it regularly thus leaving their machine susceptible to attack. Solution… get a Macintosh and don’t click on links that promise ‘free porn’ or music downloads. For the paranoid among us, add anti-virus software to your Mac and then get back to work
5) Change your password regularly. Do not keep the same password for more than 60 days
6) Create a secure place to store all your passwords and keep them protected with encryption. Put them somewhere safe but easily accessible. My suggestion is to create a secure email account and use their document repository service to give you access from any location. Here is a leading secure email service that offers a free secure email address.
7) Review ALL of your passwords for online banking, email, secure web sites etc and change the password to something stronger today.

enough said, now let’s get back to our regularly scheduled broadcast ;-)

A Financial Maverick @ Work

Once upon a time in a jungle village not so far away, a man appeared and announced to the villagers that he would buy live and healthy monkeys for $10 each.

Since the villagers considered the monkeys a real nuisance, many of them went into the jungle and began setting traps to catch them. The man bought thousands of monkeys at $10 and, as supply started to diminish, the villagers reduced their efforts. When this happened, the man announced that he would now buy monkeys at $20 each.

This reinvigorated the villagers efforts and they started trapping monkeys again. Gradually the number of free monkeys diminished even further making hunting efforts much more challenging and time consuming – people started going back to their farms. The offer was increased to $25 each, until it was difficult to find even a single monkey, let alone catch it!

The man then announced that he would buy monkeys at $50 each! However, since he had to go to the city on some business, his assistant would now buy on his behalf. As soon as the man was off on his journey, the assistant let the villagers in on a secret. He invited all the hunters and their relatives to have a look at the monkeys in the big cage that the man had paid for. And then he made them an offer that they simply could not refuse.

“I will sell them to you for $35 and when the man returns from the city, you can sell them to him for $50 each as he promised.”

The word spread like wild fire and before long, most of the villagers gathered their savings and managed to buy every single monkey held captive in the massive cage before releasing them into the jungle so that the hunt could begin anew.

They never saw the man nor his assistant again.

In the above article the names were changed to protect the innocent. The ‘financially sound’ structured products were represented by monkeys in the story but the facts remain the same; this was no accidental occurrence it was simply a version of the now popular Ponzi game. You probably already know this but, a ponzi scheme is a scam where the perpetrator collects money from new investors and uses these new cash inflows to pay high returns to past investors, so that these influencial existing investors believe that their capital is intact and working for them. All the while, the scam artist has been spending the initial capital on himself rather than investing it as advertised. To attract a special breed of greedy investor, such schemes often are promoted as exclusive clubs as in ‘by invitation only’ thus toying with the wealthy and famous have-it-alls psyche to the point where they absolutely must be part of this exclusive ‘winners circle’ in order to maintain their image.

Is Problem Solving Worth It?

A growing number of people around the world claim to be ‘electro-sensitive’, in other words physically responsive to the electromagnetic fields that surround electronic devices such as mobile phones. In fact, Sweden has recently recognized such sensitivity as a disability, and will pay for the dwellings of sufferers to be screened from the world’s electronic smog.

This is a superb example of a knee jerk reaction rather than the result of an effective problem solving process. It is unfortunate that the kind and caring politicians who sponsored the subsidy in Sweden preferred to throw money at the unknown cause rather than actually investigate it and apply some form of process to identify the most probable cause for the sensitivity.

The issue is that, time and again, studies of those claiming to be electro-sensitive show their ability to determine whether they are being exposed to a real electric field or a fake one is no better than chance. So, unless these sensitive people are lying about their symptoms, the most probable cause for the symptoms must be sought elsewhere.

In Germany at the University of Regensburg, Michael Landgrebe and Ulrich Frick think that the ‘elsewhere’ in question is in the brain and in a paper presented recently to the Royal Society in London, they describe an experiment which, they think, proves their point.

Dr Landgrebe and Dr Frick used a body scanner called a functional magnetic-resonance imager to see how people’s brains react to two different kinds of stimulus. Thirty participants, half of whom described themselves as electro-sensitive, were put in the imager and told that they would undergo a series of trials in which they would be exposed either to an active mobile phone or to a heating device called a thermode, whose temperature would be varied between the trials. The thermode was real. The mobile phone, however, was not.

The type of stimulus, be it the authentic heat source or the fake electromagnetic radiation, was announced before each exposure and the volunteers were asked to rate its unpleasantness on a five-point scale. In the case of heat, the two groups’ descriptions of their experiences were comparable. So, too, was their brain activity. However, when it came to the fake phone exposure, only the electro-sensitives described sensations such as prickling and even pain. Moreover, they showed neural activity to support these perceived sensations. Some of the same bits of their brains lit up as when they were exposed to high temperatures.

This suggests that electro-sensitivity, rather than being a response to electromagnetic stimulus, is akin to well-known psychosomatic disorders such as some sorts of tinnitus and chronic pain. A psychosomatic disorder is one in which the symptoms are real, but are induced by cognitive functions such as attitudes, beliefs and expectations rather than by direct external stimuli.

The paradoxical upshot of Dr Landgrebe’s and Dr Frick’s experiment is that mobile phones do indeed inflict real suffering on some unfortunate individuals. It is just that the electromagnetic radiation they emit has nothing whatsoever to do with it.

If you have a situation where actual results deviate from your expectations and the cause is not known… please do us all a favor and either apply our Problem Solving Methodology directly or contact us to do it for you.

Is Math Cool?

My father used to tell me that hard work and knowledge were the keys to success and furthermore, one needed to deliver 100% if you wished to succeed in anything. I asked him if math was an important factor in the equation and he confirmed that without math we would not have progressed very far on the evolutionary scale. So, I did a little research and discovered that from a strictly mathematical viewpoint one can not only avoid hard work but also achieve more than 100% and my mathematical proof goes like this:

What is 100% comprised of? What does it mean to give MORE than 100%?
Ever wonder about those people who say they are giving more than 100%?
We’ve all been to those meetings where someone wants you to give over 100%.
How about achieving 103%?

Here’s a little mathematical formula that might help you answer these questions:

If: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z were represented as:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Then:

H-A-R-D-W-O-R-K = 8+1+18+4+23+15+18+11 = 98%
and
K-N-O-W-L-E-D-G-E = 11+14+15+23+12+5+4+7+5 = 96%

But,

A-T-T-I-T-U-D-E = 1+20+20+9+20+21+4+5 = 100%
and,
B-U-L-L-S-H-I-T = 2+21+12+12+19+8+9+20 = 103%

Astonishing to me but obviously not to those ‘in the know’:

A-S-S-K-I-S-S-I-N-G = 1+19+19+11+9+19+19+9+14+7 = 118%

So, one can then conclude with mathematical certainty that: while Hard Work and Knowledge will
get you close, Attitude delivers the goods and both Bullshit and Ass Kissing will put you over the top!

Needless to say my father was not impressed and I got grounded for a week. If I remember correctly, my theorem put a smile on a few faces before the chalkboard got erased.

Curtains

Another year draws to a close and those that are not yet caught up in the turmoil of the subprime mortgage scandal or related corporate governance issues are probably focused on revenues and earnings objectives for the coming quarter. It never ceases to amaze me how many managers plead innocence publicly prior to knowing the facts and especially before claiming ignorance as they beg for forgiveness when the shit hits the fan because a few investors actually bothered to read between the lines as they picked up on sub-par decisions embedded for eternity on the balance sheet that the CEO signed off just weeks earlier. Am I referring to any company in particular? Perhaps… Do I have some sort of conflict with certain management teams that believe that they are above the law. Nay, nay for their day is nigh.

Yes, the shortfall in forecasted ROI has struck me too… How can the large, multi-national organizations that claim to spend so much effort getting things right make such ridiculous miscalculations with our money? We investors need to be vigilant and show our support for those doing the right thing. We investors need to reduce the pompousness at the board level and dig into the virtues of the truly great managers in order to pull out some sanity and coach our teams to do the right thing. Come clean say you?

Do the right thing and you are clean say I.

OK, you got me… perhaps that diatribe was a bit o’er the top but this is my official end of the year cautionary note – you ain’t seen nothing yet folks… the subprime beast shall rear its ugly head in the coming months (errr years) and we will all get a taste of how badly this calamity has affected the companies we invested in when the Q4 numbers are released. I have already looked into the crystal ball my friends… it ain’t pretty.

Anyone care to set up a pool and take bets on which giants of industry will be the next to tumble? How about a bank… If there were a pool, I’d place my money on UBS, Citigroup and Merrill Lynch not necessarily in that order.