(Roughly) Daily

Posts Tagged ‘Hindenburg

“People in any organization are always attached to the obsolete – the things that should have worked but did not, the things that once were productive and no longer are”*…

Ed Zitron argues that America has too many managers, and managers misbehaving at that…

In a 2016 Harvard Business Review analysis, two writers calculated the annual cost of excess corporate bureaucracy as about $3 trillion, with an average of one manager per every 4.7 workers. Their story mentioned several case studies—a successful GE plant with 300 technicians and a single supervisor, a Swedish bank with 12,000 workers and three levels of hierarchy—that showed that reducing the number of managers usually led to more productivity and profit. And yet, at the time of the story, 17.6 percent of the U.S. workforce (and 30 percent of the workforce’s compensation) was made up of managers and administrators—an alarming statistic that shows how bloated America’s management ranks had become.

The United States, more than anywhere else in the world, is addicted to the concept of management. As I’ve written before, management has become a title rather than a discipline. We have a glut of people in management who were never evaluated on their ability to manage before being promoted to their role. We have built corporate America around the idea that if you work hard enough, one day you might become a manager, someone who makes rather than takes orders. While this is not the only form of management, based on the response to my previous article and my newsletters on the subject, this appears to be how many white-collar employees feel. Across disparate industries, an overwhelming portion of management personnel is focused more on taking credit and placing blame rather than actually managing people, with dire consequences.

This type of “hall monitor” management, as a practice, is extremely difficult to execute remotely, and thus the coming shift toward permanent all- or part-remote work will lead to a dramatic rethinking of corporate structure. Many office workers—particularly those in industries that rely on the skill or creativity of day-to-day employees—are entering a new world where bureaucracy will be reduced not because executives have magically become empathetic during the pandemic, but because slowing down progress is bad business. In my eyes, that looks like a world in which the power dynamics of the office are inverted. With large swaths of people working from home some or all of the time, managers will be assessed not on their ability to intimidate other people into doing things, but on their ability to provide their workers with the tools they need to measurably succeed at their job.

In order to survive, managers, in other words, will need to start proving that they actually do something. What makes this shift all the more complicated is that many 21st-century, white-collar employees don’t necessarily need a hands-on manager to make sure they get their work done…

The pandemic has laid bare that corporate America disrespects entry-level workers. At many large companies, the early years of your career are a proving ground with little mentorship and training. Too many companies hand out enormous sums to poach people trained elsewhere, while ignoring the way that the best sports teams tend to develop stars—by taking young, energetic people and investing in their future (“trust the process,” etc.). This goes beyond investing in education and courses; it involves taking rising stars in your profession and working to make them as good as your top performer.

In a mostly remote world, a strong manager is someone who gets the best out of the people they’re managing, and sees the forest from the trees—directing workers in a way that’s informed by both experience and respect. Unfortunately, the traditional worker-to-manager pipeline often sets people up for inefficiency and failure. It’s the equivalent of taking a pitcher in their prime and making them a coach—being good at one thing doesn’t mean you can make other people good at the same thing. This is known as the Peter principle, a management concept developed by Laurence J. Peter in the late ’60s that posits that a person who’s good at their job in a hierarchical organization will invariably be promoted to a position that requires different skills, until they’re eventually promoted to something they can’t do, at which point they’ve reached their “maximum incompetence.” Consistent evidence shows that the principle is real: A study of sales workers at 214 firms by the National Bureau of Economic Research found that firms prioritize current job performance in promotion decisions over whether the person can actually do the job for which they’re being considered. In doing so, they’re placing higher value on offering the incentive of promotion to get more out of their workers, at the cost of potentially injecting bad management into their organization.

What I’m talking about here is a fundamental shift in how we view talent in the workplace. Usually, when someone is good at their job, they are given a soft remit to mentor people, but rarely is that formalized into something that is mutually beneficial. A lack of focus on fostering talent is counterintuitive, and likely based on a level of fear that one could train one’s own replacement, or that a business could foster its own competition. This is a problem that could be solved by paying people more money for being better at their job. Growing talent is also a more sustainable form of business—one that harkens back to the days of apprenticeships—where you’re fostering and locking up talent so that it doesn’t go elsewhere, and doesn’t cost you time and money to have to recruit it (or onboard it, which costs, on average, more than $4,000 a person). Philosophically, it changes organizations from a defensive position (having to recruit to keep up) to an offensive position (building an organization from within), and also greatly expands an organization’s ability to scale affordably…

The problem is that modern American capitalism has equated “getting the most out of someone” with “getting the most hours out of them,” rather than getting the most value out of them. “Success,” as I’ve discussed before, is worryingly disconnected from actually succeeding in business.

Reducing bureaucracy is also a net positive for the labor market, especially for young people. Entry-level corporate work is extremely competitive and painful, a years-long process in which you’re finding your footing in an industry and an organization. If we can change the lens through which we view those new to the workforce—as the potential hotshots of the future, rather than people who have to prove themselves—we’ll have stronger organizations that waste less money. We should be trying to distill and export the talents of our best performers, and give them what they need to keep doing great things for our companies while also making their colleagues better too.

All of this seems inevitable, to me, because a remote future naturally reconfigures the scaffolding of how work is done and how workers are organized. The internet makes the world a much smaller place, which means that simple things such as keeping people on task don’t justify an entire position—but mentorship and coaching that can get the best out of each worker do.

Hopefully we can move beyond management as a means of control, and toward a culture that appreciates a manager who fosters and grows the greatness in others.

The pandemic has exposed a fundamental weakness in the system: “Say Goodbye to Your Manager,” from @edzitron.

* Peter Drucker


As we reorganize, we might recall that it was on this date that Henri Giffard made the first first powered and controlled flight of an airship, traveling 27 km from Paris to Élancourt in his “Giffard dirigible.”

Airships were the first aircraft capable of controlled powered flight, and were most commonly used before the 1940s, largely floated with (highly-flammable) hydrogen gas. Their use decreased as their capabilities were surpassed by those of airplanes- and then plummeted after a series of high-profile accidents, including the 1930 crash and burning of the British R101 in France, the 1933 and 1935 storm-related crashes of the twin airborne aircraft carrier U.S. Navy helium-filled rigids, the USS Akron and USS Macon respectively, and– most famously– the 1937 burning of the German hydrogen-filled Hindenburg.

The Giffard dirigible [source]

Written by (Roughly) Daily

September 24, 2021 at 1:00 am

“a crime committed by a person of respectability and high social status in the course of his occupation”*


White Collar Crime


Over the last two years, nearly every institution of American life has taken on the unmistakable stench of moral rot. Corporate behemoths like Boeing and Wells Fargo have traded blue-chip credibility for white-collar callousness. Elite universities are selling admission spots to the highest Hollywood bidder. Silicon Valley unicorns have revealed themselves as long cons (Theranos), venture-capital cremation devices (Uber, WeWork) or straightforward comic book supervillains (Facebook). Every week unearths a cabinet-level political scandal that would have defined any other presidency. From the blackouts in California to the bloated bonuses on Wall Street to the entire biography of Jeffrey Epstein, it is impossible to look around the country and not get the feeling that elites are slowly looting it.

And why wouldn’t they? The criminal justice system has given up all pretense that the crimes of the wealthy are worth taking seriously. In January 2019, white-collar prosecutions fell to their lowest level since researchers started tracking them in 1998. Even within the dwindling number of prosecutions, most are cases against low-level con artists and small-fry financial schemes. Since 2015, criminal penalties levied by the Justice Department have fallen from $3.6 billion to roughly $110 million. Illicit profits seized by the Securities and Exchange Commission have reportedly dropped by more than half. In 2018, a year when nearly 19,000 people were sentenced in federal court for drug crimes alone, prosecutors convicted just 37 corporate criminals who worked at firms with more than 50 employees.

With few exceptions, the only rich people America prosecutes anymore are those who victimize their fellow elites. Pharma frat boy Martin Shkreli, to pick just one example, wasn’t prosecuted for hiking the price of a drug used to treat HIV from $13.50 to $750 per pill. He went to prison for scamming investors in a hedge fund scheme years before. Meanwhile, in 2016, the CEO whose company experienced the deadliest mining disaster since 1970 served less than one year in prison and paid a fine of 1.4 percent of his salary and stock bonuses the previous year. Why? Because overseeing a company that ignores warnings and causes the deaths of workers, even 29 of them, is a misdemeanor

A bracing look at an alarming phenomenon, and at the forces that drive it: “The Golden Age of White Collar Crime.”

See also this interactive “heat map” of “White Collar Crime Risk Zones,” from @sam_lavigne and his colleagues, and this paper on the cost of white collar crime– more than $300 Billion per year as of 2015; likely more now– and who pays for it (HBS pdf).

rich [Paul Noth in The New Yorker, via Jack Shalom]

* Criminologist Edwin Sutherland’s definition of white collar crime, 1939


As we equilibrate equity, we might recall that it was on this date in 1933, the day after the German Parliament building (the Reichstag) was damaged by arson, that President Hindenburg issues the Decree for the Protection of People and the Reich…

Though the origins of the fire are still unclear, in a propaganda maneuver, the coalition government (made up of Nazis and the Nationalists) blamed the Communists. They exploited the Reichstag fire to secure President Hindenburg’s approval for an emergency decree, popularly known as the Reichstag Fire Decree, that suspended individual rights and due process of law. The Reichstag Fire Decree permitted the regime to arrest and incarcerate political opponents without specific charge, dissolve political organizations, and to suppress publications. It also gave the central government the authority to overrule state and local laws and overthrow state and local governments. The decree was a key step in the establishment of the Nazi dictatorship. Germany became a police state in which citizens enjoyed no guaranteed basic rights and the SS, the elite guard of the Nazi state, wielded increasing authority through its control over the police.   [source]


Reichstag fire source


Written by (Roughly) Daily

February 28, 2020 at 1:01 am

“That which does not kill us makes us stronger”*…




In 1702, when the Spanish still ruled Florida, an English fleet from colonial Carolina approached Castillo de San Marcos, a Spanish stronghold on the Atlantic shore.

The fort guarded the Spanish empire’s trade routes as well as the surrounding city of St. Augustine, and the English wanted to run this politically and economically important outpost for themselves. Led by Carolina’s governor James Moore, the English boats dropped their anchors and laid siege.

But even after nearly two months of being shelled with cannonballs and gunfire, the fort’s walls wouldn’t give. In fact, they appeared to be “swallowing” the British cannonballs, which then became embedded within the stone. Precisely how the walls did this remained a mystery for the next three centuries.

Normally, a cannonball creates long, deep cracks in stone that radiate out from the impact’s center, causing catastrophic damage to a structure. This was clearly not the case for the walls surrounding Castillo de San Marcos. Built from coquina—sedimentary rock formed from compressed shells of dead marine organisms—the walls suffered little damage from the British onslaught. As one Englishman described it, the rock “will not splinter but will give way to cannon ball as though you would stick a knife into cheese.”…

The secret of the Spanish– and what it might mean for the future: “The Mystery of Florida’s Cannonball-Eating Spanish Fort.”

* Friedrich Nietzsche


As we muse on mutable materials, we might send altitudinous birthday greetings to Ferdinand Adolf Heinrich August Graf von Zeppelin; he was born on this date in 1838.  An inventor, engineer, and manufacturer, he was the aviation pioneer who built the first rigid dirigible airships– called, in his honor, Zeppelins.

He patented his idea in 1895, then formed a company to build airships in 1898–  though many thought his invention incredible, and dubbed him “Foolish Count.”  His first airship took off on July 2, 1900; its success stimulated funding.  Eventually, he produced more than 100 dirigibles for military uses in World War I, during which, the Zeppelins were used to bomb Britain.  After the war, he continued to improve the design and built a fleet of airships for commercial passenger service, which included transatlantic flights.  Zeppelin use ended after the May 6, 1937 Hindenburg fire disaster at Lakehurst, N.J.

220px-Bildnis_Ferdinand_von_Zeppelin source


Written by (Roughly) Daily

July 8, 2019 at 1:01 am

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