Category: business advice

  • Deskilling a society

    Deskilling a society

    The Economist looks at outsourcing in the legal profession and how various services are now being offered claiming to cut lawyers’ bills by up to 80%.

    All of this is valid as legal costs have escalated to the point that governments and businesses are baulking at the sheer expense of lawyers’ services.

    There is though another aspect to this issue; is this another step in de-skilling our society?

    A key point in the article is “…plenty of legal jobs are routine. American law firms typically get fresh law graduates to do such grunt work…”. While that grunt was profitable – as The Economist points out law firms would “bill clients for it at steep rates” – it is also how young lawyers are trained.

    The article observes that Thompson Reuters recently bought Pangea3, a legal outsourcing firm with most of its lawyers in Mumbai, while announcing it is looking to sell BarBri, a company that prepares US graduates for bar examinations, which leads to the conclusion that training young American lawyers is not a good business proposition as selling the services of cheaper Indian lawyers.

    Neglecting the training of young workers has been a notable point of Western economies in the last 30 years and while we can argue that fewer lawyers may not be a bad thing for these societies, the problems of not training nurses, electricians, builders, computer programmers, call centre staff and Engineering workers is now becoming a problem as we’ve find the global competition for skilled workers is intensifying.

    There’s no easy answer to this deskilling process as outsourcing and globalisation are a fact of life in the connected economy. But we need to be aware of this process so we can trim our national economic and education policies to suit the times.

    It’s certainly clear that pumping out thousands of law students who’ve been promised lucrative careers checking commas in contracts for big corporations is a losing proposition, but what should we be training these folk for?

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  • So you want to be an entrepreneur?

    So you want to be an entrepreneur?

    There’s a school of thought that starting your own business is the passport to independence from the rat race or liberation from the servitude of employment.

    A lot of blogs, books and writers encourage this idea and there’s no shortage of multi level marketers telling you self employment is the pathway to wealth and status.

    On his Planning Business Stories blog, Tim Berry looked at one of the other sides of self-employment, that you’ll become unemployable.

    Tim’s observations are right, but there’s a few other downsides to consider before trashing your cubicle, cashing out your savings and establishing that radical startup or buying a doughnut franchise.

    I don’t want to work for a boss anymore
    If you think your boss is an unreasonable swine wait until you deal with customers, particularly those who don’t pay their bills. Then there’s shareholders, business partners, suppliers and the taxman.

    You’re leaving the rat race
    No you aren’t. As a business owner you’ll find there’s a lot more rats than you thought when you worked for The Man, as the man employs lawyers, debt collectors and HR staff to deal with the rats.

    The sad thing is you’ll probably end up being even more in the rat race, it’s just that you may not realise you’re racing the other rats as you aren’t stuck in traffic with them anymore.

    I want to be the boss
    That’s a noble and fair aspiration. Just be aware that in your own business, you take the risks and responsibilities too.

    The boss at BigCorp can often mess up and move onto bigger and better things as the organisation is usually big enough to hide the mistakes and it’s often in senior management’s interest to hide their subordinates’ mistakes from the shareholders or taxpayers. In your own enterprise, it’s your own assets at stake.

    I’ll get a better share of my rate
    A common gripe with skilled workers, like plumbers and lawyers, is they get ripped off by their employer who pockets 3/4 of their hourly rate.

    When you start your own operation, you’ll learn the existence of overheads and soon realise why you were only paid a quarter of what you were charged out for.

    The only way to get rich is to work for yourself
    Kind of sort of true, except there’s a big survivor bias in that saying. The people who do really well out of building a business receive accolades and boasting rights, those who don’t get quietly on with their lives if they are lucky.

    In a capitalist society we reward risk, and the biggest risk you can take is setting up your own business. If you’re successful you’ll be rewarded, but the risk of comparative failure is high which is why successful entrepreneurs get more money and accolades than successful managers or politicians.

    You’ll work fewer hours
    This is probably the greatest myth of all, usually perpetuated by someone selling a multi level marketing scheme. In truth, you’ll work longer hours and many of those will be unpaid as you chase up debts and fill in government paperwork.

    On the rare occasions you do get to sit down and catch up on the news, you’ll learn to dread reports that the government is going to “simplify” or “reform” something. This will almost certainly mean more paperwork for you.

    Keep in mind that no politician – be they Republican, Democrat, Conservative, Liberal, New Labor or Labor – is “business friendly”. At best they are sympathetic in the way a non-lethal host parasite is to a warm mammal.

    You’ll never work in this town again
    Tim’s article makes this point well, that if you spend any considerable time working in your own business – be it a startup, consultancy or small business – you’ll find it difficult to get a job in the corporate sector.

    I personally found this after 12 years of running a moderately successful business, basically I was told all of that experience was irrelevant to a corporate management position. In big business terms, I’d have made a better career move if I had been driving a bus for those dozen years.

    All of this isn’t to say you shouldn’t strike out and build your own business, for many of us it’s the course in life that suits us and what we work best at. But it isn’t the lifestyle for everyone.

    We certainly shouldn’t be saying those who aren’t suited to this lifestyle are bad or inferior people; most folk simply don’t want to take the risks and demands on family, finances and nerves that running your own business entails and this is fair, sane attitude to take particularly in a time of uncertainty.

    Successful entrepreneurs have certain skill sets and a focus which can be tough on families, friends and children. For many there’s an element timing and luck as well.

    For the success of a capitalist society, we need to celebrate and reward the entrepreneurs and risk takers, but before anyone dives into a start up or small business it’s best to understand the risks and costs involved.

    Good luck.

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  • What businesses should learn from Wikileaks

    What businesses should learn from Wikileaks

    The Wikileaks Cablegate affair has been entertaining us now for two weeks as we see diplomats and politicians around the world squirming with embarrassment as we learn what US diplomats really think about the foreign powers they deal with.

    Both the leak of the cables and the treatment of Wikileaks and its founder, Julian Assange, by various Internet companies raises some important questions about the Internet, cloud computing and office security in the digital era.

    Security

    It’s believed the source of the leaked cables is Private First Class Bradley Manning, who is alleged to be responsible for leaking the Iraq tapes released by Wikileaks earlier this year.

    The lesson is don’t give junior staff unrestricted access to your data, access to important information such as bank account details, staff salaries and other matters best kept confidential needs to be protected.

    You can stop data leaving the building by locking USB ports, CDs and DVDs through either software or hardware settings on your computers and you should ask your IT support about this, keep in mind that locking down systems may affect some of your staff’s productivity.

    Locking the physical means though doesn’t stop the possibility of data being sent across the Internet and access logs may only tell you this has happened after the fact. So it’s important to review your organisation’s acceptable use policy. Check with your lawyers and HR specialists that your staff are aware of the consequences of accessing company data without permission.

    Incidentally, the idea that Pfc Manning was just one US Army staffer of thousands who were able to access these cables raises the suspicion that the information Wikileaks is now releasing was long ago delivered to the desks of interested parties in London, Moscow, Tel Aviv, Beijing and cave hideouts in remote mountain ranges.

    Don’t rely on one platform

    Wikileaks found itself hounded from various web hosting and payment providers. As we’ve discussed previously, relying on other people’s services to deliver your product raises a number of risks. Make sure you have alternatives should one of your service providers fail and never allow an external supplier to become your single point of failure.

    Concerns about the cloud

    This column has been an unabashed fan of cloud computing, but the Wikileaks saga shows the cloud is not necessarily secure or trustworthy. Not only is there the risk of a PFC Manning working at the data center compromising your passwords or data, but the arbitrary shutdown of Wikileaks’ services is a stark lesson of relying on another company’s Terms of Service.

    Within most terms of service are clauses that allow the provider to shut down your service if you are accused of breaking the law or straying outside of the providers’ definition of acceptable use. As we saw with Amazon’s treatment of Wikileaks, you can be cut off at any time and without notice.

    Amazon’s shutting down of Wikileaks is a pivotal point in the development of cloud services. Trust is essential to moving your operations to the cloud, and Amazon’s actions shown much of that trust may be misplaced.

    Should you be considering moving to the cloud, you’ll need to ensure your data and services are being backed up locally and not held hostage to the arbitrary actions of your business partner.

    Don’t put your misgivings in writing

    So your business partner is a control freak? Great but don’t put it in writing.

    Be careful of gossip and big noting

    One interesting aspect of Wikileaks to date is how senior politicians like gossip and showing how worldly they are to US diplomats.

    That’s great, but it probably isn’t a good idea to tell your best friend they should consider beating up your most important customer. As mentioned earlier, this little gem was probably on polished desks of the Chinese Politburo long before the cables found their way to Wikileaks.

    Resist the temptation to gossip, remember your grandmother’s line about not saying anything if you can’t say something nice.

    Ultimately what Wikileaks shows us is all digital communications are capable of being copied and endlessly distributed. In a digital economy, the assumption has to be that everything you do is likely to become public and you should carry out your business conduct as if you will be exposed on Wikileaks or the six o’clock news.

    Wikileaks is a lesson on transparency, we are entering an era of accountability and the easiest way to deal with this is to be more honest and open. That’s the big lesson for us in our business and home lives.

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  • Holiday computer checklist

    With the Christmas holidays almost here, a lot of business and home computers will spend a good part of the next month turned off. Even though they are shut down, bad things can still happen. There’s a number of things you should do before heading off for a break.

    Before you go

    Backup
    Before shutting down for the holidays backup all your important data. Your backup should include favourites, mail, address books and documents. Some programs, such as accounting systems, have their own backup routines.

    Store the backups away from the computer, preferably offsite. We recommend making two copies, leave one onsite for easy access and store one elsewhere. If something terrible happens to your home or office while you are away, your data is at least safe.

    For working and essential documents, setting up a free Dropbox service and copying them to it is a great idea. Dropbox is also good for saving documents you foolishly intend to work on while you’re away as well as essential documents.

    Turn everything off
    Printers, modems, routers, should all be turned off and disconnected from power and communications lines. Most modern computer equipment still has power running through it even though it is turned off. Power surges from storms are common, so don’t take chances.

    If your computer is connected to a network, telephone line or cable connection then these should all be disconnected as well. Power surges are common on communications cables. Everything that connects your computer to the outside world should be turned off and unplugged.

    Hide your equipment
    Give thieves as little temptation as possible. Don’t leave computers in full view. Lock away anything portable and draw the curtains or blinds in the room where your computer is kept.

    What to pack

    As technology becomes an essential part of our lives, we tend to take it with us. This is particularly true with devices like iPads and DVD equipped laptops which are as much entertainment devices as they are for work.

    To get the most from them, there’s a few things to consider when packing.

    Update your systems
    Run the update routines for your operating system, essential software and security programs before you leave so there will be no major updates clogging up your downloads while you try to work or play.

    Power
    The most irritating thing when on the road with a computer is running out of power. Do you have all your chargers packed away? If you have space it’s also a good idea to carry a powerboard so you can share scarce power outlets with other users.

    Connectors
    Don’t forget your USB cables to connect phones and cameras so you can download photos, update music and, for some devices, recharge them.

    Packing
    If you are flying anywhere, it’s best to take electronics with you as carry on baggage. Carry them in a bag where they are easily accessible so you can take them out without fuss at security checkpoints.

    When you return

    Your computer is the very last thing you should turn on. Make sure modems, printers, external drives and networks are all running before turning your computer on. If you have a cable Internet connection, give it a few minutes to connect before trying to log on.

    Update your system.
    Before checking emails or surfing the net, update your anti-virus and check for any system updates. Run Windows Update and your anti-virus program’s update program. New nasties will have come out while you are away and there’s a good chance some of them may be waiting in your inbox.

    Christmas and New Year are a time to relax, by taking a few easy steps with your technology you can ensure your phones and computers are part of an enjoyable break.

    Have a merry Christmas and a great New Year.

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  • Other peoples’ platforms

    Other peoples’ platforms

    “We have successfully established an online business, but we have run into problems with Ebay (indefinite suspension – unfairly I might add)” wrote Ralph*, an old client.

    “We are pretty desperate, as this is now our sole business and we are now without an income.”

    The Privately Owned Web

    Ralph’s problem is typical of thousands of businesses that rely on one Internet service. Some months back we looked at “Nipplegate”, the story of a Sydney jeweller who had her Facebook page closed down because of her anatomically correct dolls.

    All of these services are privately owned with their own terms and conditions along with their own corporate objectives. If you choose to use their product, you have to follow their rules – just like a shopping mall management can order you off their premises because they don’t like the colour of your socks.

    The most glaring example of this is Wikileaks where Amazon, Paypal, Mastercard and Visa all threw the whistleblower site off their services for allegedly breaching their terms of services in various obscure ways.

    The Terms of Service Trap

    A business’ Terms of Service usually feature clauses wide enough to catch even the most honest and diligent business, this is by design as it gives management the excuse to throw anyone who makes their lives difficult, which is exactly what has happened with Wikileaks.

    While Ralph’s problem is nothing like the scale of Julian Assange’s, all of these stories illustrate the dangers of relying on one service for your livelihood. Should that service change the way it operates, then any business that relies on that could be broke in hours, as many businesses that rely on Google search results have found.

    Most of the Internet is not a public space, almost all of it is privately run along similar lines to that shopping mall or a walled estate.

    Ralph and Julian Assange have shown us the limitations and risks of the privately operated web. As citizens and business owners we have to understand these corporations’ objectives are not always the same as ours and make judgements on how we live with the risk of finding ourselves in breach of a Term of Service in our business or personal lives.

    We’re still in relatively early days of the net and all of us are still learning. One lesson is clear though, we can’t allow our livelihoods to be held hostage by a small number of big technology companies. Make sure you have alternatives to your online channels.

    *Ralph is not his real name

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