For People Who Live Their Work

I stayed at my first Aman Hotel about fifteen years ago (http://www.amanresorts.com).  We were travelling in Asia, and a friend recommended we try the new Aman resort in Phuket, Thailand.  It was a unique and wonderful experience, and since then I stay at Aman’s whenever I can.  Every property is different and unique.  The resorts are romantic, small, and luxurious, filled with wonderful local art, and always have an incredible restaurant and spa.  The experience is more akin to staying at a rich friend’s luxurous mansion.   The staff will know you by name and personalize the visit to fit your tastes.   All the rooms are suites or bungalows, and you never need to worry about getting a bad room. You are never presented with a check – they know who you are and bill your account.  You won’t find locations in big cities. The resorts are typically in remote and facinating places that beg to be explored.  When you arrive at an Aman, you tend to stay there as much as possible and enjoy the place.  Most of their properties are located in Asia, but they opened their first American property a few years ago in Jackson Hotel, and a few months ago they opened a property in Utah which we will be visiting in  a few weeks.

We stayed at the Jackson property last summer, and it was a typically wonderful Aman experience.  Perched on a hill outside Jackson Hole, it had a breathtaking view of the entire valley.  From the moment they picked us up at the airport in a new BMW 4 wheel drive, it was an incredible experience.

Of course, all this comes at a price, and be prepared for some sticker shock.  But when you compare to Four Seasons and other five star hotels, it is right in range.

I was struck by a comment  made by one of my favorite big brains, Thomas Friedman, in his column this week in the New York Times:

“I was traveling via Los Angeles International Airport — LAX — last week. Walking through its faded, cramped domestic terminal, I got the feeling of a place that once thought of itself as modern but has had one too many face-lifts and simply can’t hide the wrinkles anymore. In some ways, LAX is us.  We are the United States of Deferred Maintenance. China is the People’s Republic of Deferred Gratification.  They save, invest and build. We spend, borrow and patch.

And this contrast is playing out in the worst way — just slowly enough so the crisis never seems acute enough to take urgent action.  But, eventually, infrastructure, education and innovation policies matter.  Businesses prefer to invest with the Jetsons more than the Flintstones.”

You can find Friedman’s entire article here:  http://www.nytimes.com/2010/03/03/opinion/03friedman.html?ref=opinion

As usual, Friedman makes many compelling arguments in favor of innovation – of progressive thinking and planning.  And I can’t help but think about how his ideas stand in stark contrast to much of the hyper- right wing conservative agenda that for some reason prefers the status quo, or even moving backward, to a society that is constantly innovating.  I watched a recap last weekend of a recent conservative caucus, where a prominant speaker proudly announced “WE ARE NOT PROGRESSIVES, AND WE OPPOSE THE PROGRESSIVE AGENDA”. 

What does that mean?  If I were to translate Progressive versus Non-Progressive to the business world, it would lay out something like this:

Progressive Companies -

• Apple
• Google

Non-Progressive Companies -

• Chrysler
• Sears

If I had a financial advisor that recommended investing in Chrysler and Sears over Apple and Google I would immediately fire them, yet many people find some comfort in the idea of Non-Progress, living life like the Flintstones instead of the Jetsons.  Progress conquers disease, racism, and poverty.  It levels the economic playing field.  It improves our quality of life and spreads optimism.  What could be bad about that?

Over the last decade the networks have essentially lost the programming war to cable television.  Network officials decided to choose cost control over quality (and we have been living in reality show Hell ever sense).  HBO was the first to prove that great television doesn’t have to only exist in network Prime Time, and lately cable start-ups have risen from obscurity to the home of some of most innovative, highest quality programming on TV.  I am particularly amazed to see cable networks like AMC reinvent themselves with incredible original programming like Mad Men and Breaking Bad.  The FX Network has grown from a weird little rerun network into a programming powerhouse with original programs that include Rescue Me, Sons of Anarchy, Damages, the just departed and twisted Nip Tuck, and I am looking forward to their newest program that starts in a couple weeks, Justified, based on the character created by Elmore Leonard.

One of my favorite new shows is a another great illustration of the decline of NBC. The terrific crime drama Southland premiered last year on NBC, but was suddenly dropped from the lineup to make room for Jay Leno’s debacle.  Another network primarily known for re-runs, TNT, picked up the show, re-ran the initial episodes, and this week rolled out all new episodes with the original cast.  Also interesting to note… when Ray Romano wanted to return to series television after his long running hit Everybody Loves Raymond he certainly could of chosen a major network, but instead he also went to TNT for his wonderful new show Men of a Certain Age.

If you aren’t watching the above shows you really should be.

One of The Bizzy Life’s favorite lawyers, Jeff Merrick, has a contribution today that has nothing to do with legal issues, but instead discusses concerts, online marketing, Keb Mo, and your favorite Los Lonely Boy’s song.

Los Lonely Boys & Keb’ Mo’ Teachings on Customer-Centered Business

by Jeff Merrick

Customer testimonials online sway buying decisions, and those “billboards” last for years. That’s why, in this age of Web 2.0, it is more important than ever to put your customers first if you want additional customers in the future. Los Lonely Boys and Keb’ Mo’ reinforced this message to me with their contrasting approaches to concerts performed months apart at the Aladdin Theater in Portland, Oregon.

Keb’ Mo’ is a blues musician with a strong fan base. He started his concert promptly at 8:00 p.m. with one of his most popular songs. His band played with professional precision, accurately recreating the recordings that brought people out on a work night. Sound quality was excellent. Keb’ displayed some of his good personality between songs. Enough so the fans felt like we were appreciated, but not so much to distract from the music.

Following the concert, TicketMaster E-mailed requests for reviews. People raved. Personally, I would see Keb’ Mo again in an instant. Additionally, people posted to their networks on Facebook and MySpace.

On a work night last week, we attended a concert by Los Lonely Boys. The group is best known for a song called, “Heaven,” a melodic ballad with a good beat that displays a lovely harmony from three brothers singing together. Two lesser-known acts delayed the start time from 8:00 p.m. to about 9:40 p.m.

The brothers played with a lack of precision: it seemed like they were a ½-beat apart on everything. Sound quality was tinny. When they alluded to getting munchies after being with Willie Nelson in times past, I wondered if they had smoked away the last the 1 hour and 40 minutes. When they played kazoos — before getting to any recognizable hit—Los Lonely Boys had lost the audience, despite the fact that they seemed to be enjoying themselves.

I was itching to leave 25 minutes before the people in front of us left. We left a couple of songs later.

Los Lonely Boys is unlikely to build a following with that performance and the negative buzz that followed. One thread read as follows:

J: Last night, in Portland, Los Lonely Boys concert was not very good.

K: Really? I’m sorry. Is that because they only have one song?

J: Yes, and I thought we were going to die before they ever got to “Heaven.”

That “billboard” is out there. It was seen by many people, and may be seen for a long time.

So, the lesson taught by the tale of two bands: treat every customer like a broadcast journalist, because, these days, we all are.

About the Author – Jeff Merrick is an attorney practicing in Lake Oswego, Oregon. Having worked at big-time firms, he now practices on his own, helping people who need to sue insurance companies and others who are trying to screw them.

Like it or not, if you are in the upper-income brackets you should probably brace yourself to pay more taxes at both the State and Federal level in 2011.  Until the Washington Brain Trust (and of course I mean that facetiously) makes their final decision, it is anyone’s guess as to what will happen on a national level, but here is a little input from my friends at Northern Trust as to the most likely scenarios -

1. If your household income exceeds $231,300 (or if you are single $190,650) the tax rate will likely increase from 33% to 36%.
2. If your household income exceeds $373,650 the highest 39.6% tax rate will likely take effect.
3. If you are in those top two brackets the long-term capital gain tax is likely to increase from 15% to 20%, with interest income taxed at the income rate.
4. You should also anticipate a lowering of value on charitable deductions.  It is likely that deductions would be limited to 28% for those in top brackets.

The above would point towards doing some good tax planning during the balance of the year.  For instance, consider maximizing long-term capital gains (2o10 might be a good year to sell your company!), and maximize your gifts to charities this year.

I have been a frequent critic of Netflix’s really silly and insulting habit of “throttling”.  Essentially if you are a frequent Netflix user, they tag your account making it more difficult to get the newest releases.  Put a new release in your queue and you are often greeted with “long wait” or “very long wait”.  This allows Netflix to ship the newest releases to customers that watch fewer movies or are new to the service.  While most brands seek to reward their best customers, Netflix takes the opposite approach and penalizes customers that stick with them  so they can make a little more money on customers that at least inititially use them less.

There are a few options to solve the problem.  One approach is to open a new account under another family member’s name.  I opened an additional Netflix account under my wife’s name and all the new releases are miraculously available.

Another option is to use Blockbuster’s online service, which works about the same as Netflix and is priced similarly.  Blockbuster’s potentially clear advantage is that they allow you to use the stores and the online service under one account, but I have not been in a video store since the days of VHS, so this was of no interest to me.  I tested Blockbuster’s online service against Netflix and found the following -

• I put five identical new releases in my Netflix and Blockbuster queue.  Netflix listed all five as ”long” or “very long wait”.  Blockbuster listed one as long wait, and was able to ship all the others immediately.  Good job Blockbuster.
• However, Blockbuster took two to three days to get the DVDs to me – versus one day from Netflix. 
• On average, Netflix’s site is much easier to navigate and use.

So if you are getting throttled and want the newest releases, and don’t mind waiting an extra day or two, Blockbuster is the way to go.  Of course, I cannot assure you that Blockbuster doesn’t also engage in throttling once you become a big user.

And despite my disappointment over Netflix’s bad customer treatment, I maintain my Netflix account, and I should also admit, I am a stockholder and a big believer in the long term prospects for the company.  One reason I stick with Netflix is their wonderful download service.  If you install the right piece of hardware (I use both an HD Tivo and a Samsung DVD player, but there are now many options) you can choose from thousands of movies to download direct to your television, and it is all included in the price of your membership.  (To be fair, Blockbuster now offers this service, with different terms, and I have not tried it.) But it was Netflix that really pioneered and scaled the idea, and I believe that just as the video store is practically obsolete, we are approaching a time when DVDs will be largely eliminated in favor of downloading and streaming.  Netflix, Apple, and perhaps Amazon are in prime positions to capitalize on this development, and I own all three stocks.

While Apple builds terrific proprietary hardware that allows you to stream their entertainment, Netflix has taken more of a Microsoft approach, working with multiple consumer electronic companies to allow downloading via their equipment.  Netflix is also doing some interesting deals with the studios, agreeing to delay certain releases on DVD on their site to allow the studio more initial profits by selling DVDs, but in exchange getting the rights to release earlier than the competitors via downloading.

All these moves were apparent when Netflix released earnings a few weeks ago.  Strong profits have driven the stock price up $12 a share in just the last month.

Ultimately, I think their practice of throttling is short-sighted, but they are doing so many other great things with the company that I remain a long-term believer.  In the meantime, Blockbuster is trying to catch up, but they are years behind, and they are saddled with a lot of real estate and an old business model to dispose of.

Scientists at MIT are close to perfecting the hydrogen-powered house. Since I have no real talent for science I am incapable of giving you the technical overview, but here is the layman’s explanation. They have developed a mini-hydrogen power station that would replace your current household power supply. It would utilize some solar power to produce the small amount of electricity needed to combine with water to create a hydrogen power plant. No more fossil fuels needed. No more pumping pollutants into the atmosphere. The only output is water. And this hydrogen power plant  in your house could also be used to fill up your hydrogen-powered car someday, eliminating our other nagging fossil fuel drain, and the need to  build a huge hydrogen punping station infrastructure.

According to MIT, the technology works now, and would be practical and cost-efficient for wide distribution within ten years. Honda is currently testing hydrogen-powered cars on a relatively large scale in California, so the automotive technology should exist within that time frame.

This means that in a decade or so you could be living in a home that has no power bills and creates no pollution, and driving a car that doesn’t require stopping at gas stations, and instead of exhaust emits water from its tailpipe.

Terrorists seek to disrupt through fear. And the more afraid they make us the more apt we are to act emotionally and irrationally because of this fear. Since 9/11 we have acted irrationally when it comes to air travel, and the failed Christmas plot has really driven us into frenzy that is causing us to take ridiculous actions. If next time terrorists threaten a shopping mall, then I assume we would develop irrational fears and actions to protect malls. And soon the terrorists are essentially in control, as fear has driven us to change our lifestyles. There is a big difference between taking reasonable methods to protect our security, and completely altering our lifestyles because of fear.

I would argue that there is a more subtle, but perhaps even more dangerous kind of terrorism going on courtesy of the American media. Unfortunately fear drives viewership, and the media thrives on any story that makes us afraid. Consequently most of our legitimate journalists have been replaced by these new media “terrorists” that seek ratings by filling us with fear, anger, and distrust. They operate from both the left and the right, spewing rumors and innuendo that keep people glued to the screen. When much of the population is convinced that our President is actually a socialist foreign-born Muslim that favors killing off the elderly, people naturally get afraid. It also spreads panic when people are convinced that the world will end in the next few months due to global warming, that Pakistan and North Korea are preparing nuclear strikes, and that the flu vaccine is deadly. Certainly global warming, nuclear weapons, and public health are important issues that need to be discussed, but the terrorists in the media are less interested in public discourse than they are sensationalism.

I think it is quite possible that the ranting and fear mongering that now typifies mass media is having an incredibly negative long-term impact on society. The truth is that for most of the world, this is the best possible time to be alive. While the human race is far from perfect and we face many massive problems, the large majority of mankind lives happier, healthier lives than those that came before us. But that doesn’t make good news. Nor does all the incredible work that is going on around the world that will solve these big problems.

These media terrorists might not blow up airplanes or plant roadside bombs, but I suspect they are even more effective than Arab terrorists at destroying optimism and people’s spirits. Luckily these kinds of terrorists are easier to identify, and easier to eliminate than the ones that live in caves in Pakistan. We need to eliminate them by turning the dial, refusing to buy their ridiculous books, complaining to the companies that support them with advertising, and flatly rejecting their terrorist messages designed to crush our spirits.

Every now and then I will be interviewing a young prospective employee, and when I ask what is really important to them, they reply “I want to be really successful, but I also want work  life balance”.

“I don’t want my entire life to be defined by what I do”, they often comment. “It’s important that I spend time with my family…. doing the things outside of work will fulfill me”.

“Mmmm, yes”, I smile. “Work life balance. I’ve heard of that. But boy did you apply for the wrong job”.

Certainly I don’t discount the importance of a life outside of your job.  And there are many professions that offer a balanced existance.  But if I query my friends and business associates that have had really successful careers, the will almost without exception say that the concept of work life balance did not occur to them for at least the first twenty years of their work life.   I’ve been working hard for the last thirty years, and am now just seriously considering the concept.

There are no free rides to success.  There is a direct correlation between how hard you work and how successful you become.  That’s why it is so important to find work you love, as unfortunately successful people tend to spend more time working than with the people they love. A career is often like a savings account.  If you put maximum effort into the crucial first part of your career, you are often lucky enough at the end to actually enjoy some work  life balance.

After wiping out most of their retail competitors, Walmart has been steadily moving towards controlling the brands they sell. Last week they eliminated the Glad and Hefty brands from their food storage shelves, consolidating to their fast-growing private label brand, Great Value, and the Ziplock brand.

Many anticipate that this will be a sign of things to come across many product catagories, with Walmart consolidating to fewer brands and really promoting their own more profitable private label brands.

Walmart is such a Goliath that these kind of moves could have tremendous consequences for many manufacturers.  This could mean the decline of many major American companies, but you can’t really blame Walmart for the move.  Consumers probably don’t need  – or want to choose from dozens of plastic bag options. Slimming SKUs in favor of more profitable and desireable products seems to make sense in many product catagories for retailers.

But this also points to the need for manufacturers to come up with design and marketing efforts that allow them to control their own destinies, as opposed to just being a low-cost house manufacturer for major retailers. Walmart’s mantra of the lowest price certainly resonates with a huge group of consumers, but a manufacturer that sells on price alone remains continually vunerable.  They also need to sell innovation – features and benefits that imbed their product in consumers’ minds and make them a destination brand, with advertising and marketing that reflects this differentiation.