Tuesday, January 28, 2014

If You build It

"In the fall of 2008" as I'm usually saying these days to the point where, notice, I'm quoting myself, "if Barack had done one thing, just one, if he'd have tossed us one bone, I could maybe say, 'okay, I get how the system works. But he at least threw us a rope we can hang on to.'"

Back then I had the idea to take $70 billion out of the TARP and tell the banks, Look, assholes, we're not gonna just hand over $770 billion to you numbnuts and not give the people whose money you're robbing nothing. So write down this $70 bil and stfu! You're STILL getting $700 BILLION so, one more time, STFU!"

Then, take that $70 bil and start a campaign where startups can apply for seed money. They go to the "restartamerica.org" site and can view tutorials, go through a bootcamp, see examples of what works, find mentors, find co-founders, network with others... 

That leads to putting together a pitch package: exec summary, slide deck, maybe wireframes or diagrams if applicable, maybe a short video. Then it gets vetted. If it passes muster, it gets seeded, let's say up to $70k. That's a lot of startups.

Most will fail. That's ok. Because even the failures will be better off; they'll have acquired very valuable skills in how to prepare a professional presentation, how to meet and greet, learn what investors are looking for... and with the advent of crowd funding, now they even have a second chance. Maybe that'd even be their first choice.

But the successes... there'd be a few... would be so motivating, so positive a message for us that we'd almost forget the evil empire because, well, who wants to focus on them when we got this great stuff over here going?

Hell, take that money and lay fiber in America  everywhere. Massive project, huge job creation, big stimulus for supplier entrepreneurs ... and at the end of the day, something to show for it: a state of the art network that will boost productivity (hopefully).

I believe entrepreneurship is one of the keys to unlocking the unprecedented set of problems that EM08 presents. And though all but the uber-rich have been hit with the EM08 wrecking ball and at least its shrapnel, young people today are up the creek. Have we ever put an entire generation at risk like this? This is suicide in the making, and the EU is foreboding in ts massive unemployment among its young people.

Enter Studio H, its founder, Emily Pillotin, and filmmaker Patrick Creadon's brilliant film on Studio H's foray into the unknown, which in this case is tiny Bertie County, NC. Yee haw, time for a hoedown.

Not quite. Studio H -- Emily and her partner Matthew Miller --  having been recruited by the superintendent to bring their design approach to the local high school. There are, of course, many letters between that a and z, but, as with all good stories, the troubles mount.

What sticks is watching these country kids come alive in new ways -- there's a great line by one of them when he's being introduced to the audience, and he says something like, "I'm an old fashioned boy" -- ways that city kids could never imagine, even in private schools. One of my big buzzwords these days is "craftsmanship," and I believe it's a dead philosophy, certainly in our dead ass educational system. Studio H teaches design from a holistic perspective, from the community perspective, in thinking and doing as one integrated process.

Olvera Street is where the City of LA "officially" got started, and is all touristy now. When Ma would take me there as a kid to eat, I remember wanting to stop and watch the glassblower dude. For me, the fascinating part was not watching the corny animals and baubles "come to life" but how he'd prepare the tubes, how he'd heat them, blow a bit, form them... the technique, the deftness... There is, for me, great pleasure in watching someone who's adept at something.

But the genius of If You Build It is not the voila! of watching these kids as design whizzes, it's in the how they become adept at design. And that speaks to "the 10,000 hour principle," but presents a problem for the artist; how do you convey the sweat magnitude of the principle? For Studio H, it's getting down to brass tacks; design begins with approach, consideration, thinking, then planning, and last but not least, doing. It's a ton of hard work.

One of the observations about East LA's lowriders is this; many, if not most, of the kids then were languishing in school. The schools in my hometown were some of the worst, with ultra-high dropout rates, recidivism and all of the attendant ills that go with a socio-economically-challenged area. But those kids who were into lowriding... they'd ply endless hours at dead-end gigs and plow that revenue into their craft, working tirelessly on their cars. And when you think about what goes into car restoration and customization, the myriad considerations and details... it really is remarkable.

I think that same spirit and practice is on display with the kids of If You Build It. Their "character arc" is also remarkable, as you watch kids who have no inkling of design principles and aesthetics blossom with the water of creativity.

An old acquaintance once remarked his displeasure with the dating scene thus; "Any woman I meet from now on has to be into something." And he didn't mean "shopping". That, I think, is what's so great about watching the kids of If You Build It, that they really get into it. Currently, California is having a statewide debate on the so-called "Common Core," what students must know. But it begs the question: Will students get into it? And beyond, method, to borrow from McLuhan, is pedagogy.

If You Build It is not a panacea, nor is it "the solution." Our educational system is so broken here that saying that is beyond trite. But things that work are already known, and some I have written about here. Let me add design and the pedagogy, the admirable practice of Emily Pillotin and Studio H. If I had a young kid in school now, I'd kill to have her/him experience this program.

The farmers market: Student designed & built.


Studio H founder Emily Pillotin with students CJ Robertson & Stevie Mizelle


IYBI's director, Patrick Creadon




Sunday, January 26, 2014

All the Chips

This is wrong: It's the GANGSTER
that should have the tie & briefcase.
People at this point have no choice but to have some other values because I have really bad news for everyone:
THERE'S NO MONEY LEFT THEY TOOK IT ALL!
--Fran Lebowitz




Pics: Sunday Morning, 1/26/14














Saturday, January 18, 2014

Selllout

Sales fixes everything.
--Guy Kawasaki


Perkily, Marissa Mayer
Proving no American exception, Yahoo! didn't learn from history. When they announced Marissa Mayer's hiring, my reaction was the same as when they hired Terry Semel (from, aol-time-warner, the old media side, film, which made zero sense to me; an old media dude to run a new media company...?): why?

From the article below:

Mayer was on the product/engineering side of Google, but not in the advertising part of product/engineering.

Even "advertising" doesn't get it right. Advertising is not sales, it's mechanics, not sales (making money). Sales, and only sales, is sales. And yet, no one ever talks about going into sales, oddly opting instead for marketing because, given our valorization of money, that's where the cache is.

But marketing (mechanics) doesn't fix problems -- sales do (making money).

It's why I think ad traffic models have an inherent flaw; at pennies per click ("cpc" cost per click in industry speak) it relies on Godizilla amounts (economies of scale) of suckers (traffic) to "keep on clicking" -- that's why fb, twitter, et al ad nauseum, can cash in - for now. These "new economy" models have to be free to attract Godzilla traffic which they in turn sell to spammers. But is that sustainable for anyone outside of the billionaire boys club of facebook, instagram, and the rest of "the smoke and mirrors gang"?  

Maybe someone will figure out how this makes sense over, say, "build it, sell it", but until then I see these two core flaws as not just unsustainable, but ... weird. Why? Because despite the "irrational exuberance" of gamblers who're in the market with a new equities high yesterday, the smoke and mirrors gang lose money. And until that's addressed, how can anything else be considered more important? Am I missing something? Hey, despite Jeff Bezos claiming he can turn on the earnings spigot "anytime" most would be surprised to know that Amazon doesn't make money and for quite a while bled money like Niagra Falls.

But at least I can see the Amazon model's potential to succeed, because they sell like crazy.They're excellent at sales and customer service.

Then there's the weird insidiousness, the crassness, of "free". People are up in arms about the NDAA and NSA spying, but there's nary a whimper from the msm about your information being the target of spammers. It's as if there were an invasion scale; NSA prying? Hell yes we give a damn! Corporate retailers whose only goal is to weasel their way into your wallet? Eh, huh?

Anyway, back to the subject at hand. Two sins:

[de Castro] has no experience whatsoever running any kind of a real ad salesforce...

It looks like former AOL ad executive Ned Brody is going to take over for De Castro. We're hearing that he too was a "systems" guy at AOL. Mayer still needs to find a true sales person who understands the media business.

In the meantime, I'm not completely stupid. I'm working on a model that at least in part is derived from my contribution to the vomitus vernaculus --  "fread": free + advertising. Yeah, yeah, I know, sellout.


From Business Insider

Marissa Mayer just had her first major mistake as Yahoo CEO.
She was forced to oust Henrique De Castro, her hand-picked, and highly compensated COO after just 15 months on the job.
From the moment De Castro was hired, people warned that he was a big mistake for Yahoo.
Yet, Mayer plowed ahead, hiring De Castro, likely because when she started at Yahoo she had a blind spot for how the ad industry really works. After almost two years on the job, she now understands the industry better and is trying to correct her mistake.
When Mayer hired De Castro, one source told us, "[Henrique] is very smart, but he has a difficult personality; both his teams and his clients dislike him ... He has no experience whatsoever running any kind of a real ad salesforce, let alone a 1,000+ team selling experiential media into brand buyers."

This source wasn't an outlier. De Castro had plenty of enemies.
He has his own parody Twitter account that tweets some of the outlandish things he's said, such as, "To the CEO of major UK TV broadcaster: 'This deal is like sex with a Russian prostitute. Veeeerry tempting.... but no.'"

At Google, De Castro oversaw the successful creation of its display ad business, but Yahoo's ad business is different from Google's ad business. De Castro was running systems that served/targeted/optimized/ display ads for Google. That sort of advertising is radically different from a takeover display ad that runs on Yahoo's front page.
Mayer was on the product/engineering side of Google, but not in the advertising part of product/engineering. She didn't have to think about advertising. And since ad dollars flowed into Google, she probably thought she could just pluck any Google ad guy out of a lineup and plug him into Yahoo.
To people like Mayer who didn't pay attention to the ad business, an ad is an ad is an ad. But there are important, nuanced differences.
Despite many warnings that De Castro was bad fit for Yahoo, Mayer still poached him with a giant payday. Executive compensation firm Equilar estimates De Castro will collect $109 million from his time at Yahoo.
His time at Yahoo yielded little in the way of results, as far as we can tell. Yahoo's ad business remained stagnant, and De Castro was clashing with Mayer and her top executives.
Kara Swisher at Re/Code reported, "In recent months, according to numerous sources, he and Mayer had developed a tense relationship that many in meetings with the pair found it hard not to notice."
De Castro was a no-show at CES, the big tech industry trade show where Yahoo had a massive keynote with all sorts of executives. That was a warning sign that De Castro was not long for Yahoo.
Now, he's gone. In a note to employees, Mayer didn't try to soften the news. She said, "During my own reflection, I made the difficult decision that our COO, Henrique de Castro, should leave the company."
While this is a high-profile mistake for Mayer, there's some reason for optimism.
First, the stock is only down 2% this morning. By firing De Castro, Mayer telegraphed that the ad business is not doing well. And still, investors don't care, because Yahoo remains (for the most part) a tracking company for Chinese Internet giant Alibaba. In other words, Mayer has time to find her footing.
Second, she made her decision relatively quickly. De Castro was only at Yahoo for 15 months. She didn't let his tenure drag on just to save face. She cut him before it got too ugly.
Moving on from De Castro is good, but there's already murmurs in the ad industry that she still hasn't solved the problem.
It looks like former AOL ad executive Ned Brody is going to take over for De Castro. We're hearing that he too was a "systems" guy at AOL. Mayer still needs to find a true sales person who understands the media business.