I’m a little late this week, but it’s time for another edition of Remainders, my chance to share all my favorite internet ephemera from the last seven days. In case you’re new to things, here’s last week and the week before. Before diving in, update on the book front is I finished off How to Think and quickly read the Ursula Le Guin short story “The Ones Who Walk Away from Omelas” (which is around 30 pages and definitely worth the time). I flipped back and forth on what to read next, but think I’ve settled on China’s Economy: What Everyone Needs to Know by Arthur Kroeber (who I first ran into on this amazing podcast episode a few years ago about China and the book, “Arthur Kroeber vs. The Conventional Wisdom“). As always, if you want to get these in posts in your inbox you can subscribe by email. Okay, now for some links.
My talk from Percolate’s Transition Conference in SF is online now. It’s all about applying the theory of constraints from the book The Goal to marketing’s bottlenecks. We’re putting on Transition London in two weeks. If you’re interested in joining us there, please get in touch.
One more thing from me: I was interviewed on Paul McEnany’s excellent Real Famous podcast (iTunes, PocketCasts, Stitcher). I can’t listen to my own voice for that long, but people have told me they enjoy it.
It was a great week for longform. Here are my four favorite pieces:
- The Cut had this totally crazy story of an NYC socialite grifter who went by the name Anna Delvey. “Anna looked at the soul of New York and recognized that if you distract people with shiny objects, with large wads of cash, with the indicia of wealth, if you show them the money, they will be virtually unable to see anything else. And the thing was: It was so easy.”
- The craziest story in sports this week was easily this Ringer piece about Bryan Colangelo, President of Basketball Operations for NBA Philadelphia 76ers, being connected to a set of strange anonymous Twitter accounts. The handles tweeted inside info from the team and bad-mouthed Joel Embiid, the 24-year-old center they just paid $150 million. I legitimately can’t think of another story like this in sports. The Sixers are “investigating” and most expect Colangelo to be fired, although internet sleuths have zeroed in on his wife as the likely culprit, not him. (As an aside, the Sixers were also at the center of what may be the second strangest story of this NBA season: How Markelle Fultz, the number one pick in the 2017 draft, managed to forget how to shoot.)
- Speaking of the the NBA, I’ve been waiting for someone to write a definitive story of how the NBA came to be a “pace-and-space” league full of threes, layups, and free throws. ESPN’s Kevin’s Arnovitz and Pelton are the men for the job: “Through much of the ’90s, a basketball possession was commandeered by a coach on the sideline who shouted the set to the point guard, who transmitted that play call to the other four players on the floor. But today’s fast-paced NBA teams have tossed away most of the playbook in favor of a series of basic principles and patterns that empower the guys on the floor to make decisions based on feel. Gentry, whose teams were ranked in the bottom half of the league in pace five times in his six seasons as a head coach before his arrival in Phoenix to join D’Antoni’s staff, is himself a convert.”
- The New Yorker profile of John Feeley, ex-Ambassador to Panama, is yet another story of a smart and capable person who has left government because of a combination of incompetence and purposefully harmful policies from the Trump administration.
You know Maslow’s Pyramid? Of course you do. Well, it turns out that the pyramid didn’t come from him at all and, in fact, it disagrees with a lot of what his theory had to say. This comes from a new paper “Who Built Maslow’s Pyramid? A History of the Creation of Management Studies’ Most Famous Symbol and Its Implications for Management Education” which Ed Batista highlighted on Twitter. Here’s quote from the paper:
We identity three specific negative effects in this regard: that the pyramid is a poor representation of Maslow’s [hierarchy of needs]; that the preoccupation with the pyramid obscures the context within which the theory was created and that by focusing exclusively on the pyramid, we miss the other contributions that Maslow’s thinking can make to management studies.
The paper’s authors even put together this handy video explainer.
Steve Kerr is back in the NBA Finals coaching the Golden State Warriors. Last week he had some strong comments about the NFL’s anthem decision. If you’re curious, the Times had a good profile of Kerr last year that tells the story of the assassination of his father in Beirut in the 1980s.
The iconic Ali/Liston photo turned 53 last week.
Favorite podcast episodes:
I ordered a copy of the Toyota Production System, which includes this great inside cover timeline:
Speaking of books, here’s every book Bill Gates has recommended over the last six years.
Twitter pointed out this photo of Rocket’s star James Harden looks like a scene from a renaissance painting and, of course, there’s a subreddit called AccidentalRenaissance.
The New York Times had a good op-ed on how segregation worked in the North. And here’s Jelani Cobb on “Starbucks and the Issue of White Space“.
Would you go to a republican doctor?
Some good stuff in this New Yorker book review of The Big Picture: The Fight for the Future of Movies (the author, Ben Fritz, was also on an excellent episode of Slate Money a few weeks ago), a book about the history and current state of the movie industry. This bit about the size of the rental market really surprised me:
Suddenly, there were video stores all over America that needed to purchase at least one copy of every major new Hollywood movie. In “Powerhouse: The Untold Story of Hollywood’s Creative Artists Agency” (Custom House), an oral history compiled by James Andrew Miller, Tom Hanks recalls the effect that this had on Hollywood in the eighties. “The industry used to be so flush with free money that it was almost impossible to do wrong even with a crappy movie, because here’s why: home video,” he says. By 1986, video sales and rentals were taking in more than four billion dollars. Income from home viewing had surpassed that of theatrical release.
TILs from this week:
My friend Tim Hwang launched the Trade Journal Cooperative, wherein you pay $60 a year to get random niche trade journals sent to you. I couldn’t be more in.
I was reminded of this great piece about Suck.com and its unique style of hyperlinking.
Mary Meeker presented her yearly state of the internet with lots of data.
From the China book I’m reading, thought this was an interesting nugget:
These are summed up in a motto frequently cited by one of China’s leading economists, Justin Lin, who attributes it to Premier Wen Jiabao: “When you multiply any problem by China’s population, it is a very big problem. But when you divide it by China’s population, it becomes very small.” The point is simple, though easy to miss: China’s size means that any challenge it faces—unemployment, environmental degradation, social unrest, you name it—exists on an almost unimaginably large scale. But it also means that the resources available to tackle the problem are gigantic. The difficulty lies in marshaling all those resources and deploying them effectively.
This question/answer from NYTimes/Gladwell about the kinds of stories that fascinate him fascinated me:
Are there certain ideas that you find yourself drawn to again and again? For example, you’ve used the threshold model of collective behavior to explain both school shootings and why basketball players don’t shoot free throws underhand. I like ideas that absolve people of blame. That’s the most consistent theme in all of my work. I don’t like blaming people’s nature or behavior for things. I like blaming systems and structures and environments for things.
On the subject on blaming systems not people, it looks like the famous marshmallow experiment missed the systemic nature of what allows certain kids to be better at delaying gratification:
Ultimately, the new study finds limited support for the idea that being able to delay gratification leads to better outcomes. Instead, it suggests that the capacity to hold out for a second marshmallow is shaped in large part by a child’s social and economic background—and, in turn, that that background, not the ability to delay gratification, is what’s behind kids’ long-term success.
Finally, after failing to get a recommendation from Consumer Reports because of braking issues, Tesla was able to push out a software update that improved stopping significantly enough that CR upgraded to a recommend. Perfect example of how software is eating the world.
Ok, that’s it for this week. Thanks for bearing with me while I tried to get this out. If there’s anything I should definitely check out that I didn’t mention, please send it my way. Otherwise please share this with your friends and, if you haven’t already, subscribe to the email. Thanks and have a great week.
Another week with lots more to read. On the book end of things I finished up Play Bigger, finally got around to reading Fun Home (yes, I’m counting graphic novels against my 30 book goal for 2018) and started my first Vonnegut with God Bless You, Mr. Rosewater (more on that in a bit). Didn’t write anything new this week myself, though I’ve got a few things in the hopper. As usual, if you like what you read here you can always subscribe. Okay, onto the links.
Favorite article of the week goes to Evan Osnos’s New Yorker piece on the Trump administration’s approach to “restructuring” the way the government works. Here’s a bit:
Last October, Tillerson’s office announced the launch of a “FOIA Surge,” a campaign to process a backlog of Freedom of Information Act requests, which would require three hundred and fifty State Department staffers. The work was rudimentary (“You could do it with smart interns,” one participant said), but the list of those assigned to it included prominent Ambassadors and specialized civil servants. They quickly discovered something in common: many had worked on issues of priority to the Obama Administration. Lawrence Bartlett had been one of the department’s top advocates for refugees. Ian Moss had worked to close the prison at Guantánamo Bay. (Bartlett and Moss declined to comment.) “It seemed designed to demoralize,” one participant said.
I love just about everything that comes out of McSweeney’s and felt a little starstruck seeing someone I know with a piece there. Give Juno DeMelo’s “A New Mom’s Honest LinkedIn Profile
” a read.
But I also think it goes to something deeper than that, when people will make this argument — in a way that really bothers me. It goes to this idea that … as we’re making all of these amazing strides in society, in terms of increasing our social awareness, and making efforts toward ideas like diversity and equality, and just sort of creating this more inclusive world … somehow sports should be an exception. It’s this idea, for some people, that sports should almost be this haven, where it’s O.K. to be closed-minded — like a bubble for all of our worst ignorance. And that as athletes, if we have any problems with the way things are, we should (as the saying goes) “stick to sports.”
Tim Harford is one of my favorite economics thinkers. Here he is with his five favorite economics books.
What does it take to shuffle a card deck effectively?
Here’s a list of “ologies” in case you need it.
I had never run into the voting/weighting machine analogy of markets from Benjamin Graham (who was Warren Buffet’s hero and mentor):
The father of value investing, Benjamin Graham, explained this concept by saying that in the short run, the market is like a voting machine–tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine–assessing the substance of a company. The message is clear: What matters in the long run is a company’s actual underlying business performance and not the investing public’s fickle opinion about its prospects in the short run.
Some podcasts I listened to this week:
Speaking of Gopnik, she wrote an interesting critique of Steven Pinker’s new book:
The weakness of the book is that it doesn’t seriously consider the second part of the conversation—the human values that the young woman from the small town talks about. Our local, particular connections to just one specific family, community, place, or tradition can seem irrational. Why stay in one town instead of chasing better opportunities? Why feel compelled to sacrifice your own well-being to care for your profoundly disabled child or fragile, dying grandparent, when you would never do the same for a stranger? And yet, psychologically and philosophically, those attachments are as central to human life as the individualist, rationalist, universalist values of classic Enlightenment utilitarianism. If the case for reason, science, humanism, and progress is really going to be convincing—if it’s going to amount to more than preaching to the choir—it will have to speak to a wider spectrum of listeners, a more inclusive conception of flourishing, a broader palette of values.
And speaking of Julia Galef, I really liked this Tweet of hers:
At some point I’m going to write a rebuttal piece on why content isn’t a terrible term.
A few TIL’s:
Was reminded of this piece from Kevin Slavin on designing for complexity.
The growth of text messaging in chart form:
How did sports come to be so divisive? Hint: It has a lot to do with September 11th. “What was once ostensibly a unifying moment in the country has helped transform sports, with flags and flyovers, kneeling and protests — into the most divided public spectacle this side of Congress.”
As I mentioned, I’m reading God Bless You, Mr. Rosewater by Vonnegut from 1965. It feels like it’s all about this moment. I’ll try to put together a bigger post of quotes when I’m done, but here’s a little nugget to illustrate the connection:
And Samuel bought newspapers, and preachers, too. He gave them this simple lesson to teach, and they taught it well: Anybody who thought that the United States of America was supposed to be a Utopia was a piggy, lazy, God-damned fool. Samuel thundered that no American factory hand was worth more than eighty cents a day. And yet he could be thankful for the opportunity to pay a hundred thousand dollars or more for a painting by an Italian three centuries dead. And he capped this insult by giving paintings to museums for the spiritual elevation of the poor. The museums were closed on Sundays.
Some “Restaurant Recommendations from Your College Friend“.
What happened to medical spending in the US in 1980?
The 5S’s (not to be confused with the Happiest Baby on the Block approach), is a way to organize workspaces. They are:
- Seiri (Sort)
- Seiton (Straighten, Set)
- Seiso (Shine, Sweep)
- Seiketsu (Standardize)
- Shitsuke (Sustain)
It’s surprisingly cathartic to watch people organize a hospital supply room using the method.
The FT is no longer requiring it’s journalists to always write data as a plural. Hooray!
Blockchain skepticism FTW!
Song’s issue is that most enterprise-software companies offering blockchain solutions don’t benefit from decentralization. Blockchain technology is supposed to eliminate the need for a trusted third party to verify things like transactions and contracts. But most of the use cases available today still need some sort of third-party involvement, be it a bank, lawyer, or regulatory body.
That’s it for now. Thanks again for reading. Don’t forget to subscribe
if you haven’t and please share this around if you’ve enjoyed. I’ll be back next week with more. Have a great weekend.
I’ve set a reasonably modest goal for myself of writing 10 blog posts in April. Let’s see if I can get back on this bike (since I really miss it). This is post number 1.
One of my favorite Planet Money episodes (and maybe favorite podcast episodes period) is about why, despite everything we know about economics, Coke stayed five cents for 70 years. I wrote about it back in 2012 and just a few years ago Planet Money did a 3:45 video version of the episode.
I’ve become somewhat obsessed with basketball over the last few years. I’m not entirely sure why, though it’s a combination of it being on at a convenient time (I’ve found Sundays harder to swallow over the last few years) and some really interesting work going on around new approaches and analytics (a few years ago the NBA installed a series of motion-tracking cameras in every stadium allowing for some really interesting analysis of how the game works).
Anyway, my basketball interest has crashed headfirst into my new parenthood, and thus being awake in the middle of the night fairly often. As much as I’d love to be reading serious stuff while I’m waiting for a baby to go to bed at 3am, I just can’t make it work, so I’ve been reading some basketball books. This week it’s The Jordan Rules, which covers the Chicago Bulls 1991 championship season (Jordan’s first). It’s a fun and easy read for the middle of the night.
Anyway, when I read this passage I couldn’t help but fast-forward to today’s conversations around “small ball” (some teams, specifically the Golden State Warriors, are going out and playing without a traditional center and instead running with 5 guys who can dribble and shoot and space the floor). In the mid-1980s the trend was “Twin Towers” (playing with two centers):
But Cartwright didn’t get much playing time in New York after returning from those foot injuries. Patrick Ewing had come along by then, and Brown tried a twin-towers approach with Cartwright and Ewing. That approach had come into vogue when Houston, with Akeem Olajuwon and Ralph Sampson, upset the Lakers in five games in the 1986 Western Conference finals; suddenly everyone wanted two centers. But Ewing didn’t care to play forward, and when Brown was replaced, Cartwright took a seat on the bench behind Ewing. He didn’t like it, but he started to get used to the idea.
At the end of the day, part of what makes sports so interesting to me is that it’s a nearly perfect space for a bunch of economics theories. Advantages are won and lost quickly, new ideas spread through leagues nearly instantly at this point, and at the end of the day all the strategy in the world doesn’t replace talent.
I’ve been reading quite a bit of Brian Arthur’s writing lately. He’s a “complexity economist” from the Santa Fe institute and a pretty interesting all around thinker. Need to put together a bigger writeup of his ideas, but wanted to share his steps on how technology forms the economy around itself from his book Complexity and the Economy:
The steps involved yield the following algorithm for the formation of the economy.
1. A novel technology appears. It is created from particular existing ones, and enters the active collection as a novel element.
2. The novel element becomes available to replace existing technologies and components in existing technologies.
3. The novel element sets up further “needs” or opportunity niches for supporting technologies and organizational arrangements.
4. If old displaced technologies fade from the collective, their ancillary needs are dropped. The opportunity niches they provide disappear with them, and the elements that in turn fill these may become inactive.
5. The novel element becomes available as a potential component in further technologies—further elements.
6. The economy—the pattern of goods and services produced and consumed—readjusts to these steps. Costs and prices (and therefore incentives for novel technologies) change accordingly.
This week’s NYTimes Magazine economics column is all about timesheets. While the whole thing is worth a read, I found the history of timesheets especially interesting:
The notion of charging by units of time was popularized in the 1950s, when the American Bar Association was becoming alarmed that the income of lawyers was falling precipitously behind that of doctors (and, worse, dentists). The A.B.A. published an influential pamphlet, “The 1958 Lawyer and His 1938 Dollar,” which suggested that the industry should eschew fixed-rate fees and replicate the profitable efficiencies of mass-production manufacturing. Factories sold widgets, the idea went, and so lawyers should sell their services in simple, easy-to-manage units. The A.B.A. suggested a unit of time — the hour — which would allow a well-run firm to oversee its staff’s productivity as mechanically as a conveyor belt managed its throughput. This led to generations of junior associates working through the night in hopes of making partner and abusing the next crop. It was adopted by countless other service professionals, including accountants.
Interesting perspective (and data) on the effect of online retailing and the general environment on malls:
I agree with the above perspectives, although I believe they likely understate the eventual impact on malls. A report from Co-Star observes that there are more than 200 malls with over 250,000 square feet that have vacancy rates of 35% or higher, a “clear marker for shopping center distress.” These malls are becoming ghost towns. They are not viable now and will only get less so as online continues to steal retail sales from brick-and-mortar stores. Continued bankruptcies among historic mall anchors will increase the pressure on these marginal malls, as will store closures from retailers working to optimize their business. Hundreds of malls will soon need to be repurposed or demolished. Strong malls will stay strong for a while, as retailers are willing to pay for traffic and customers from failed malls seek offline alternatives, but even they stand in the path of the shift of retail spending from offline to online.
Living in New York it’s easy to forget the importance of malls in retail. Haven’t ever completely understood why that is exactly, but the malls in New York (the only two I can think of off the top of my head are South Street Seaport and Herald Square) feel like afterthoughts and are filled with stores that feel out of place in an otherwise retail-hungry city.
I’ve written in the past about what market leaders do to build categories, and frequently I cite Google as the best example of these strategies. Their approach with laying down fiber and providing really cheap, super fast internet in Kansas City is no exception. Like it did with Chrome (at least at the beginning), Google is trying to jumpstart a stagnant market:
If you are one of the lucky few Kansas City natives to have already signed up for Google Fiber, I don’t begrudge you one megabit; your ancestors had to deal with the Dust Bowl, you deserve a little extra bandwidth. But at its heart, Google’s attempt at being its own ISP is much more about forcing the entrenched service providers — the Verizon’s and Time Warner’s and AT&T’s of this world — to step up their games than it is about making this particular business a raving financial success. When I asked the Google spokeswoman what the ultimate goal of all this was, she replied that Google wants “to make the web better and faster for all users.” The implication is that they don’t necessarily want to do it all by themselves.
For whatever reason I’ve been listening to a lot of podcasts lately. One of my favorites is Planet Money from NPR. Their latest episode is a really interesting look at why Coca-Cola stayed 5 cents for 70 years. Turns out there are two primary reasons: First, the company got into a crazy deal with the bottlers where it was selling syrup at a fixed price of 90 cents a gallon. Because it was a dumb deal and Coke knew it they realized they needed a way to keep the price from spiraling out of control. Their solution was advertising. Because they couldn’t control the sale price they just went out to the market and told everyone it was 5 cents a bottle, meaning retailers were left with no choice but to sell it for the price consumers expected. The second reason is a little less exciting, but still interesting. Apparently Coca-Cola had an insane amount of vending machines around and they were all 5 cents. After getting out of their contract they could raise the price, but they didn’t want to double it and the machine couldn’t take anything but nickels. They tried (and failed) to lobby the government for a 7.5 cent coin, but eventually just kept the price as it was (with a brief period of giving every eighth consumer an empty bottle to artificially raise the price in a crazy way).
Go check out the whole thing.
I don’t know what it says about me, but I’m a sucker for thousand-word stories on things like shipping pallets. Luckily for me, Slate has gone ahead and written one (or rather they wrote one back in August). Here’s a little taste:
Pallet history is both humble and dramatic. As Pallet Enterprise (“For 30 years the leading pallet and sawmill magazine”) recounts, pallets grew out of simple wooden “skids”, which had been used to help transport goods from shore to ship and were, essentially, pallets without a bottom set of boards, hand-loaded by longshoremen and then, typically, hoisted by winch into a ship’s cargo hold. Both skids and pallets allowed shippers to “unitize” goods, with clear efficiency benefits: “According to an article in a 1931 railway trade magazine, three days were required to unload a boxcar containing 13,000 cases of unpalletized canned goods. When the same amount of goods was loaded into the boxcar on pallets or skids, the identical task took only four hours.”
If that doesn’t make you want to read it, I don’t know what will.