Tag: human resources

Economic irrationalist

Posted on by Steve Sammartino

Lately I’ve been making a few decisions which are economically irrational. Making decisions which are, on the face of it, financially inept.

For example, I starting to feel a sense of loyalty to my chief technology officer for rentoid.com

He’s not the cheapest and he’s not the best. Probably somewhere in the middle for both. I could probably get someone cheaper with similar skills, or better for the same price. But I don’t. In fact I tell him that I’m loyal to him. A large part of why I want  to succeed so that he can succeed also, to share it with him. Even though he has not risked the capital, or the time that I have on the project.

Why would I act this way. Well I like working with him. He’s a nice guy, and sometimes that’s enough.

I guess you could call me an Economic Irrrationalist. And it just feels right.

Startups & husband / wife teams

Posted on by Steve Sammartino

Is a husband and wife team good for a startup? Start up blog can’t answer that question. Theres enough examples of both faliure and success with such teams that I think it ‘depends’.

What startup blog can say is this:

In this situation there are really 2 startups.

  1. the marriage (already hard enough)
  2. the startup (also quite difficult)

I think the first startup should be the priority, if that rolls well maybe can engage on startup number two.

lois-and-peter

If startup number one suffers because of startup number two. Then startup number two should be exited, to refocus on startup number one. It’s a matter of priority and no amount of business success can replace a miserable existence at home and in personal relationships.

the 5% rule

Posted on by Steve Sammartino

5% of our customers wont pay on time

5% of our customers wont pay at all

5% of our employees wont deliver what they are paid to

5% of our employees will steal and or damage company property

5% of business partners will break contracts and even worse, not keep their word

5% the people we meet will be genuinly dishonest and painful to deal with

It’s the 5% rule. In fact quite often business discussion are too often focused on the 5% of times the business model will break down and we will get cheated in some way. The amount of strategy, board room and agency discussions I’ve had about the 5% of people who make business models and ideas imperfect are countless. The point for startups, no less any business, is to accept the fact that all models have gaps. And more often than not these gaps the doing of the 5% rule.

the 5% rule

The problems with trying to remove the 5% is that we build gates and protections which often stuff up the 95% which is working. We create unnecessary friction. What we are better off doing is thinking about the problem like water evaporation. It’s going to happening, no matter what we try. But we must remember that the very large majority of people are good.

My advice is simple. Know that it exists, and forge ahead anyway.

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Nature or Nurture?

Posted on by Steve Sammartino

I noticed this morning that a particular area of my box hedge isn’t growing as well as other areas. See the two photos below.

hedge1 hedge2

In order to remedy the situation I thought about what the different things I could do:

  1. Ensure the poor performing area was getting enough water
  2. Make sure the soil wasn’t poisoned in that particular area of the garden
  3. Remove the weeds from the periphery
  4. Add some fertiliser to the struggling area
  5. Aerating the soil with a hoe
  6. Ensure the area is getting enough sun

In fact, I’ll try the methods above. What I wont do is ‘remove’ the box hedge. I really need it because it forms part of the garden perimeter. It provides the required symmetry. It’s an integral part of the garden. I will give it the extra attention it deserves, and talk to it. I won’t pretend it will fix itself, because I know that is just a fantasy.

So, why do we take the opposite view with our staff / employees or business partners? We rarely ask first what we can do, and most often just ‘cut them out’, get rid of them, or even chastise their performance, before we look at the reasons for it. Maybe they:

  1. Aren’t getting enough cash to do their part?
  2. Maybe their part of the organisation has structural issues?
  3. Maybe they have non functional ‘hangers on’ stealing time & resources?
  4. Maybe we need to invest in some training or programs to boost the area?
  5. Maybe we need to give them more space & freedom to perform?
  6. Maybe we are not providing enough reward & recognition?

You’ve probably noticed how many of our people problems have strong analogies to my box hedge. In fact, both nature and people, need nurturing.

Steve – founder rentoid.com