How to be a CEO, in 10 minutes

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

Look after the pennies and the pounds will look after themselvesRecently, I was listening to a CEO give a fantastic explanation of his job (described as “how to be a CEO in about 10 minutes – some free of charge advice”). Of course, it’s a massive over-simplification* but, fundamentally, this is what business is about.  I’ve left out all of the juicy metrics – they were confidential – and I’m not naming the CEO either but I thought it would be interesting to share the basics, particularly if, like me, you have no formal business qualifications…

If you run a company – it’s a good idea to have a strategy. Often, that strategy boils down to three things:

  1. Run the company properly
  2. Grow the company
  3. Prepare for the future

Whilst all three principles need to be applied, 1. needs to be in place before you can focus on 2. and 3., so let’s look at “running the company properly”.

There are three important metrics to consider:

  • Gross margin
  • Operating expenditure
  • Operating profit

We’re all in business to make money (or generate value in another form – which generally involves raising funds along the way). Gross margin is about customers allowing companies to charge more for a product or a service than it actually costs to create because the company adds value. The amount of margin that customers will allow depends on the types of products or services that are sold – and some products rely on high volume sales with low margins, whilst others are highly profitable in themselves because they attract a premium price (e.g. if they are in short supply).  Even if you don’t know what the margins are, it’s pretty easy to see which companies are charging a premium and which are not.

So that’s gross margin.  The next thing to consider is operating expenditure (OpEx).  This is the overhead of running a company: premises, people, etc.  Reducing OpEx is about reducing overheads – and if you want to know if you are an overhead, consider whether your presence in the workplace has a direct impact on customers.  If it doesn’t, then you’re an overhead…

You can’t run a company with zero OpEx, but it needs to be appropriate and under control.

Gross Margin minus OpEx equals operating profit – and I said earlier that, generally, we are in business to make a profit.

Now, profit is all well and good, but companies need cash in order to function – and a company’s cashflow is vital in order to be able to buy materials (to create products and services) and to allocate money for capital expenditure (CapEx) like new equipment and other investments in growing the company (e.g. acquisitions).  Just like a current account, negative cashflow is not necessarily a problem, as long as the company can be recapitalised (e.g. by its shareholders), or borrow money from a financial services institution (e.g. an overdraft, or a loan).  At some point the intention is such that the incoming revenues are sufficient and the margin/OpEx healthy enough that profits grow and cashflow turns positive. At that point, a company can return value to its shareholders, or invest for the future.

So that’s how to run a company, with a little bit of growth in the mix too (principles like the service-profit chain can help too, linking profitability, customer loyalty, employee satisfaction and loyalty and productivity). With the basics in place and a good team on board, planning for the future is about vision – recognising upcoming challenges and finding new opportunities (maybe even some disruptive innovation).

 

* At least, I imagine it is – I’ve never been a CEO and don’t expect I will be in the near future either!

Photo Credit: Mukumbura via Compfight (licensed under Creative Commons).

Technology standardisation – creating consistency in solution architecture

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

One of the things about my current role is that I can’t really blog much about what I do at work – it’s mostly not suitable for sharing outside the company.  That’s why I was pleased when my manager suggested I create a white paper outlining the technology standardisation approach that Fujitsu takes in the UK and Ireland. That is, in a nutshell, what I’ve been working to establish for the last year.

The problem is that, without careful control, the inherent complexity of integrating products and services from a variety of sources can be challenging and costly. Solution architects and designers are trained to create innovative solutions to problems but, all too often, those solutions involve bespoke elements or unproven technologies that increase risk and drive up the cost of delivery. At the same time, there are pressures to reduce costs whilst maintaining business benefit – pressures that run completely contrary to the idea of bespoke systems designed to meet each and every customer’s needs. Part of the answer lies in standardisation – or, as I like to think of it, creating consistency in solution architecture.

My technology standardisation paper was published last month and can be found on the Fujitsu UK website.

I’ll be moving on to something new in a short while (watch this space and I’m sure I’ll be able to talk about it soon), so it’s great to look back and say “that’s what I’ve been doing”.

Social media and the law (#socmedlaw)

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

Courtroom One GavelA couple of weeks ago, I received an invitation to a lunchtime round-table event, to chat about social media and the law. “What’s not to like?”, I thought, and a few days later I was enjoying the delights of good company in an Italian restaurant in London’s Covent Garden (and wishing I hadn’t driven to the station that morning – more vino please!). Well, what’s not to like indeed – a couple of hours flew by and I could quite happy have whiled away another couple, had I not needed to get back to the office…

So, social media and the law. Really? Is that such a big deal?

In a word, yes!

You see, whilst we’re all enthusing about sharing our lives online and building digital relationships, there are some for whom that’s a little too risky.  I’m not talking about over-sharing personal details here – exposing oneself to undesirable physical world impacts from digital world slip-ups – but about negatively impacting one’s employment as companies struggle to get their heads around a world where relationships are formed online as well as in the traditional methods. Indeed, even the round-table where we were discussing these issues was run under the “Chatham House rule” – precisely so that participants could speak openly and freely, without fear of the consequences of reporting what they said (reporting is fine, attribution is strictly off limits).

Starting the conversation with concerns about employees tweeting, there are a whole load of considerations, from issues of authenticity to accidentally committing an organisation to a contract. Some organisations maintain lists of approved social media users but what happens when an over-enthusiastic employee defends your brand using their personal account and crosses a line?

Ultimately, companies are trying to protect their reputation online and limit their liability in the digital space, just as they do in the physical world. But there’s no “one size fits all” solution: some brands may be “free and open”, others more “locked down” and it’s increasingly important to create policies for acceptable use of social media. The issue is that these policies need to be kept up to date, and need to reflect the real world. For example, an organisation might forbid its employees to affiliate themselves with a brand online. That’s OK on Twitter, Facebook, etc. but what about their online CV on LinkedIn? For all of my disclaimers absolving my employer of any views and opinions I express online (disclaimers that were, incidentally, triggered by an unclear social media policy), it’s still pretty easy to find who pays my salary and to establish a link between my personal views and a brand. Thankfully, I’m told, there is a legal distinction between a social media account used for work purposes and affiliation of a personal account to a company or brand.

Unfortunately, until “social” is embedded in our organisational DNA, there will be issues – and the legal minefield around developments in the way we use technology is not exclusively limited to social media.  Take recent legislation on the use of “cookies” for example, described at the event as “stupid laws by stupid people, made for the wrong generation”.

It’s important to recognise that much of the movement into social seen by companies today is out of compulsion rather than quantified need – organisations need to consider what’s right for their brand. And what if social media isn’t purely a marketing tool, but about relationships? Enlightened companies are accepting that employees are increasingly linked online but it’s still important to “think and use your brain”. Microsoft’s blogging policy is often quoted as “blog smart” – it’s actually two pages that boil down to “don’t be stupid”. The important element is being careful not to make forward facing statements on behalf of the company and monitoring takes place to control any breaches (inadvertent or otherwise).

Ultimately, employee behaviour is hard to control. Generally, there is no malicious intent. As employers we need to explain the consequences of actions but educating people is difficult.

Then there’s the issue of what happens when an employee leaves a company. There are high-profile cases of influential tweeters taking their followers to a new organisation, or of companies claiming that a LinkedIn profile belongs to them.  Many companies are only to happy to benefit from relationships (and skills) when staff are recruited but try to protect these assets when they move on – maybe a future legal case will clarify the situation, with a sensible judge telling companies that they can’t “have their cake and eat it” (one can hope).

Even in the most sales-focused organisations, handing over an address book is one thing but relationships are individual (people transact with people)… perhaps it’s the relatively new nature of social platforms that means the rules of engagement are still settling down?

There’s an argument that assets gained on company time belong to the company, but what exactly is company time? In our increasingly connected society, there’s a fine balance between an employment contract, bringing chores/devices to work and working extended hours outside the office. When do we stop being employees and start being individuals again? For many of us, there is no more 9 to 5!

A couple more points that I liked were: that corporate use of social media is not really about openness but about translucency; and that we have years of history with employees talking to customers – in shops! The difference now is the online evidence trail.

Some consider that the damage any one individual can cause online is limited anyway, that the Internet is “filling up”, with user-generated content increasingly buried in search results by bland, corporate results (which may be authoritative but make it hard to find any real information on making things work). On the other hand, if patent trolling is a valid business model (which it appears to be), what about copyright trolls, or social media offence trolls?

That brought us nicely onto copyright, which evolved because society saw creative endeavours that needed to be protected. But the nature and scope of copyright is that it can only exist where society respects and enforces the rules. That means that copyright does need to evolve, especially here in the UK, where there is no concept of “fair use”.

In summary, there are a lot of worries about social media and the law but nobody is really over concerned – we know that laws will change (eventually) – but there will be intervening years where the implications exercise the minds of everyone from board members downwards and only common sense can drive us through. That means that monitoring is required: companies can’t engage in social media unless they’re prepared to monitor and to be intelligent about what they find.

Highlight of #SocMedLaw - "stupid laws for stupid things, made by the wrong generation" eg: Cookie Law. Who agrees?... 100%
@AbigailH
Abigail Harrison

 

So, what was the biggest lesson for me? Actually, it was nothing to do with the law. I found that taking comprehensive notes whilst tweeting and eating lunch is difficult!

Thanks to Social Safe for sponsoring the event and to Abigail Harrison (@AbigailH) for making it happen.

Photo Credit: Joe Gratz via Compfight (licensed under Creative Commons)

Useful links posts – where to go now

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

At the end of 2012, I said I would stop creating the monthly “useful links” posts that I’ve been collating for the last few years.  The information is still available – it’s just not in a blog post – the place to look is my Delicious feed (or via Twitter @markwilsonit, prefixed [delicious]).

Microsoft Consulting Services’ sporting analogy

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

Earlier this week I was at a workshop where Microsoft Consulting Services described their potential to engage with clients/partners on five levels, using a sporting analogy

  • Owner: full responsibility from design to implementation and go live.
  • Manager: lead in design and control – architect designs and have user experience lead, lead developer, lead test.
  • Player: Provide consultants for key point activities.
  • Coach: Work alongside individuals with a particular focus on skills transfer and mentoring.
  • Commentator: Review designs, plans, code, scripts.

Someone suggested it’s actually a football analogy and doesn’t work for their sport (Rugby Union) but I disagree. Regardless, the real point is that the relationship can work at one of a number of levels.  Would be interesting to hear what people who’ve engaged with MCS feel about this though…

Problems removing storage resources from Windows Azure virtual machines

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

Last year, I wrote about creating a virtual machine on Windows Azure, using the IaaS capabilities of the platform.  My free 90 day subscription is coming to an end so I needed to remove all resources before they become chargeable (running or otherwise). The problem was that, after the deleting the virtual machine, I couldn’t remove the storage because:

Storage account […] has 1 container(s) which have an active image and/or disk artifacts. Ensure those artifacts are removed from the image repository before deleting this storage account.

That wasn’t too helpful as I couldn’t find anything that looked like an “image repository” in the management console.  Thankfully I found the answer on StackOverflow.com:

“[…] even if you’ve already deleted all of your Virtual Machines and it shows 0; there still will be artifacts under the disks tab”

Book review: The Archers Archives

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

Most people who read this blog do so for technology content of some sort (although I have to accept there may be some stalkers too…). Readers seem to tolerate my occasional rants and wandering off to a bit of photography or motoring from time but I’m not sure there are very many fans of The Archers subscribed to my RSS. Or maybe there are?!

I’ve been listening to “the world’s longest running soap opera” for a few years now but the fact that Auntie Beeb makes it available as a podcast is a huge advantage. Now I don’t have to be close to the radio (or digital alternative) at a certain time and I don’t have to inflict my daily catch-up on family members who are less interested in the goings-on in Ambridge (although I was amused and maybe slightly concerned a few years ago when my son, then aged-about-4, started to repeat “for more information go to bbc dot co dot uk slash archers” and danced around to the “dum di dum” theme as I was listening in the car!)

My Archers addiction is only a few years old though (I did listen for a while on the radio a few years before that), but I sometimes start to wonder what a certain reference might mean, when the day’s script hooks back into something from the distant past. So I was especially pleased to receive a copy of The Archers Archives in my Christmas stocking.

Produced for the Archers 60th anniversary (so not covering the last couple of years), this book walks though all of the major events since the programme’s inception, including interviews with the actors and actresses who play the major parts, as well as key members of the production team.

There’s some interesting information on the BBC website but I thoroughly recommend the book to anyone who enjoys the Archers and is intrigued to know more about the history of Ambridge and its community.

Installing a 64-bit guest operating system on Oracle Virtual Box

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

With no need to run a Windows infrastructure at home these days, recently, I began to plan to move from a Windows Server at home to a Linux-based machine for basic services like DNS, DHCP and TFTP.  Initially, I plan to build a virtual machine before switching back to native configuration when I’m happy that all is working as it should be.

The target hardware is the “low-power” server that I built a few years ago, based on an Intel Atom 330 dual core CPU. Whilst this does provide 64-bit processing capabilities, it lacks VT-x so is unsuitable for Hyper-V.  Consequently I installed Oracle Virtual Box as a free type 2 hypervisor and began to install an Ubuntu Server (12.04 LTS) virtual machine.  This failed, complaining that the underlying architecture was i586 and that the 64-bit image I was using needed an i686 CPU.

According to a post on the Ubuntu forums, to run a 64-bit guest in Virtual  Box, I need to enable Intel VT-x (or AMD-V). As that’s not an option for me, I had to revert to 32-bit build but it’s something useful to remind myself of as my virtualisation knowledge is a little rusty these days…

Where’s the line between [IT] architecture and design?

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

This week, I’m attending a training course on the architecture and design of distributed enterprise systems and yesterday morning, somewhat mischievously, I asked the course instructor where he draws the distinction between architecture and design.

We explored an analogy based about a traditional (building) architect in which I suggested an architect knows the methods and materials to use but would not actually carry out the construction work. But the instructor, Selvyn Wright, made an interesting point – if we admire a building for it’s stunning architecture, often we’re talking about the design. Instead, he suggested that architecture is a style or philosophy whereas design is about the detail.

In the UK IT industry, the last 10 years or so have seen a trend towards “architect” job roles in business and IT. Maybe this is because the UK is one of the few countries where to be a great engineer is discouraged and technical skills are undervalued, rather than being held up as a worthy profession.

In reality, there is a grey line between an architect and a designer and I had frequent conversations with my previous manager on the topic (usually whilst discussing my own development on the path towards enterprise architecture – another commonly mis-used term, probably best saved for another post). Regardless, architecture and design do get mixed (in an IT context) and there comes a point in the transition when one can look back and say “ah yes, now I understand”.

I suggest that point is when someone is able to abstract the logical capabilities of a system from the technology itself. At that point, they’ve probably crossed the line from a designer to an architect.

In other words, an architect can understand the business problem from a logical perspective and create one or more possible solutions. The required capabilities are the logical model and the physical elements are those which need be bought, built or reused to match those capabilities. Architecture is about recognising and employing patterns.

Having decided what an architect is, we come to the issue of design. Indeed, design is a word more often used in a creative sense – a website designer, for example, has a distinct set of skills that are very different to those of a website developer. Ditto for a user interface designer or for a user experience designer. Within the context of the architect vs. designer debate, however, a designer can be viewed as someone whose task it is to work out how to configure the physical elements of the solution and create designs for elements of software applications, or of IT infrastructure.

Architect or designer, either way, I still struggle with the term “architected”. Designed seems to be a more grammatically correct use of English (adding further complexity to the design vs. architecture debate) but it seems increasingly common to architect (as a verb) these days…

Short takes: cyber security; stock images; PowerPoint presenter view; smart TVs, iPads and YouTube

This content is 12 years old. I don't routinely update old blog posts as they are only intended to represent a view at a particular point in time. Please be warned that the information here may be out of date.

Lots of ideas for blog posts this week but limited time to commit pen to paper, or fingers to keyboard for that matter. Here are the highlights of what might have been…

Cyber security

Last year, I assisted one of the lecturers at University College London (UCL) with some “expert” opinion on the bring your own device phenomenon, for a module as part of the MSc course in Human Computer Interaction. It seemed to go reasonably well and I was invited back to speak on this year’s topic – cyber security.  I can’t claim to be an expert, but I could present some supplier-side views on the UK Government’s “10 steps to cyber security” advice which seems very sensible but is also based on aspirational and tactical solutions which could be costly to implement in full, so need to be considered with an understanding of the relative risks and an eye to the future.

For anyone who’s interested, my presentation is available for viewing/download on SlideShare, although it’s very visual – full narrative is available in the notes.

 

Searching for good images

I’m a fan of full-page images on slides and limited text. I find it keeps the audience engaged and listening to the presenter, rather than reading pages of bullet points.  The down side is that it can be very time consuming to find the right images, especially without access to an account at a good stock library.

As my presentation to UCL was as in individual, not representing my employer, I was able to use images licensed for non-commercial use under Creative Commons and Compfight is a great tool for searching Flickr for these.  I’ve attributed all of the photographers used in the deck above, and if you don’t have access to iStockPhoto, Fotolia, etc. then this can be a good way to find images.

PowerPoint Presenter View

I’ve blogged before about PowerPoint’s presenter view and I’m amazed that more people don’t use it (although, the people who don’t are generally fans of dull corporate decks with lots of bullet points – yawn!). Somehow though, my PC had reverted to not using it, and I needed to Google to find where the option is in the PowerPoint 2007/2010 ribbon!  In the end, it was this Cybernet New post that showed me the important option: on the Slide Show tab, in the Monitors section.

YouTube smart TV and mobile apps

I wanted to re-watch a presentation that I’d missed last year and that I knew was on YouTube. Given that it was nearly an hour long, I thought the comfort of my living room would be a good place to do this, using the YouTube app on my smart TV. It was. At least until I lost the stream part way through and the Samsung YouTube app refused to play ball with the fast forward control. Another annoyance was that the “Watch Later” functionality in YouTube isn’t recognised by the a-little-bit-dumb app on the “smart” TV, so I needed to add the video to another playlist first.

Eventually, I finished up watching the second half of the video on my iPad. Here, again, it’s useful to know that the built-in iOS YouTube app is feature light and that there is a newer version available from Google in Apple’s AppStore.