Police, Metrics and the missing comedy of the Red Beads

Deming Red Bead Experiment

I heard a report on Friday related to the Metropolitan Police possessing an internal “culture of fear” because of a “draconian” use of Performance targets, based on an interview and survey with 250 police officers. The report author went on to say that officers who missed targets were put on a “hit list”, with some facing potential misconduct action. Some of the targets were:

  • 20% arrest rate for stop and searches
  • 20% of stop and searches should be for weapons
  • 40% for neighbourhood property crime
  • 40% for drugs

and some for one policing team in 2011:

  • PCs to make one arrest and five stop and searches per shift
  • Special Constabulary officers to make one arrest per month and perform 5 stop and searches per shift
  • Police Community Support Officers (PCSOs) to make five stop-and-accounts per shift, and two criminal reports per shift

But Metropolitan Police Assistant Commissioner accused the reports authors of “sensationalising” the issue. He also then said something that threw the red flag up in my simple brain – that “it was the Met’s job to bring down crime“. Then said that since it had a “more accountable way of doing things”, rates were down by nearly 10%”.

One officer told the report: “Every month we are named and shamed with a league table by our supervisors, which does seem very bullying/overbearing.”

Another officer refers to a “bullying-type culture”.

The report says: “There is evidence of a persistent and growing culture of fear spawned by the vigorous and often draconian application of performance targets, with many officers reporting that they feel almost constantly under threat of being blamed and subsequently punished for failing to hit targets.”

But Scotland Yard denied officers were being unfairly pressurised. In a statement, the force said it was faced with many challenges, but insisted it did not have a bullying culture.”We make no excuses for having a culture that values performance,” it said.

“We have pledged to reduce crime, increase confidence and cut costs. It’s a big task and we have a robust framework in place to ensure we achieve this. The public expects no less.”

A source of confusion here

I thought that the “it was the Mets job to bring down crime” comment was a very curious thing to say, not least that I traced it’s origin to his ultimate boss, the Home Secretary, who also said the only Police metric important to her was that of reducing crime.

Think about that for a moment. Does the Police have total control to dictate the crime rate? I wouldn’t dispute they have some behavioral, presence and advisory influences, but in the final analysis, there are many external influences (outside their control) that i’d suspect have a much greater impact on that measure. With that, you’re entering into a world where your main control at your disposal – that of diligently recording the statistics to back up a political narrative – is wide open to wholesale abuse.

Meanwhile in Bristol

The private sector is far from immune also. At one stage earlier in my career, I worked out of a company branch office in Bristol, serving IT customers in the South West UK. For the most part, we were very matter of fact, honest and straightforward with customers. And then came the annual customer satisfaction survey, a multiple choice questionnaire sent to the IT Managers at most of the key customers we dealt with in our work.

I remember being in an office with the IT Manager at Camborne School of Mines (we had a big VAX doing scientific work, supporting their drilling for warm underground water as a potential future energy source). The customer satisfaction survey was sitting open on his desk, with the page showing his yet to be filled in customer satisfaction measure for quality of Field Service Maintenance. In walks the Field Service engineer who’d just arrived, said “Hello, i’m here” around the door, and was called back by the IT Manager. The Manager then held the tip of his pen over the 1-10 rating boxes on the survey, and said “When can we have the new disk drive that arrived yesterday installed?”. Field Service engineer said “Is next Wednesday okay?”. Pen moves over to the 1/10 Customer Sat box. “Eh, I can probably do it just after lunchtime today!”. Pen moves over the 10/10 box. “Yes, you’ll have everything working this afternoon”. With that, the 10/10 box was ticked. A wry smile from everyone, and a thought that if genuine feedback was sent back by customers in general, it would result in service improvements that benefitted the company.

As it turns out, very naive on our part.

A missive rolled down from the European HQ in Geneva that said our office was the 3rd worst office for customer satisfaction in Europe, and hence someone in the office would be nominated to enact changes to improve performance for next year – with serious consequences if big improvements weren’t delivered. And with that, the European President said – to all 30,000 staff in Europe – is that the minimum acceptable performance next year would be an overall 8/10.

So, what happened? The guy in the office nominated to manage the transition to high quality (wry smile here) was the same guy who did the large scale benchmarking exercises for prospective customers against competitors of that time. Where the main skill was politically getting things coded into the customers benchmarking spec handed out to every vendor that suited the performance characteristics of our own machines, and in generally playing whatever games he could to win on key measures on which the bidding competition would be judged.

Customers known to be unhappy magically disappeared from the survey mailing list. Anyone visiting customers routinely in their working week were trained on how to set customer expectations that anything under 9/10 was deemed a failure, and that 10/10 was a norm. And everyone knew who was going to get a survey, and worked doubly hard to ensure those customers were as happy as we could make them – with the minimum marking scores in mind. Several thought of it no more than one week when they had more blackmail capital than at any other time of the year, but otherwise complied with the expressed wishes.

End result: Top office in customer satisfaction in the country, and only 3rd among all the branches in Europe (1 and 2 in Austria – suspicious that, but hey).

Were customers any happier? No. Was the survey a useful improvement device? No. Did it suit the back story for the political narrative? You bet! And with that the years continued to roll on.

My own Lightbulb moment

Somewhere along the line between Bristol and more senior roles in the same company, I came upon one W Edwards Deming, and one thing he routinely did to managers to fix this sort of malaise. But a slight detour first (based on what I did after that following my experiencing one of his lessons).

Doing things right (I think)

When I was Director of Merchandising and Operations at Computacenter’s Software Business Unit, the internal Licensing Desk reported into me; a team of five people who dispensed advice about how to buy software in the most cost effective way possible without unwanted surprises. And administering all the large license orders with vendors in support of this. A super team, managed by Claire Hallissey.

Claire had one member of her team consolidating data collection on the number of calls coming into the team and how long each enquiry was taking to handle; not something i’d imposed on the team at all, but I suspect for her own management use. It became pretty obvious from the graphs that growth in demand to use her team was far outpacing the revenue growth of the Business Unit, at a time when we were likely to be under pressure not to increase headcount.

So, what did we do? I indicated that the data collection was brilliant, and didn’t want to see effort or accuracy of that compromised in any way. However, if they managed to work out any way of reducing the volume and length of calls into her team by 15% by the next quarter end, i’d put a £150 bonus in each of their pay packets. The thinking here is that they were the folks who could ask “why” most effectively, and enact changes – be it local office new sales support hire training, simplifying documentation, and generally tracing back why people were calling in the first place. And then relentless putting their corrective actions into play.

In the event, they got overall call volume down by 25%, the source data quality stood up to my light scrutiny, and all duly got the £150 bonus each – plus senior accolades for that achievement. One of the innovations was adding a sentence or two to standard template response emails they’d built to answer common secondary questions too – and hence to take out repeat calls with better content in the first email answer sent back. With that, the work volume growth trailed the sales volume increases, and the group more productive – and less bored by the same repeat questions, ad nauseum.

Then in Southend

Likewise on day 2 of my job at Demon Internet, when a group of us walked into the Southend Tech Support Centre to see a maxed out floor of people on the phones to customers, and a classroom with 10 new recruits being trained. The Support Centre manager, looking very harassed, just said “that’s this weeks intake. We’ve got another 10 next week, and another 10 the week after that”. I think I completely threw him when I said nonchalantly “But why are customers calling in?”. He just looked at me as if i’d asked a very stupid question, and replied “We just haven’t got enough staff to handle the phone calls”.

Fortunately, his deputy was able to give us a dump of their Remedy system, so a couple of us could sample the call reasons and what specifically was requiring technical assistance. In the event, 27% of the calls related to setting up the various TCP/IP settings; we then changed the product and simplified it’s supporting documentation to work those issues away. At least some respite until Microsoft shipped Internet Explorer 6, which resulted in the Customer Services Director admitting later as having “fundamentally broken my call centre”. But that’s another story.

W Edwards Deming

W Edwards Deming Quote

But back to metrics. The one thing in all my career that made my light bulb go on related to measures and metrics was an experiment conducted by W Edwards Deming. Deming was an American statistician who was sent to Japan after World War 2 to assist in it’s reconstruction, and found himself teaching motorcycle and car manufacturers on how to improve the quality of their products. As quality improved, they also found prices went down, and companies like Honda, Suzuki, Kawasaki, Datsun (now Nissan) and Toyota went from local to worldwide attention with motorcycles, then cars. The products from which, unlike their western counterparts, rarely broke down and remained inexpensive – so much so, western governments instituted quotas to arrest the siege on their own manufacturing industries. To this day, the highest accolade for excellence of quality in Japan remains “The Deming Prize”. It was only much later that the work of Deming was widely acknowledged, and then used, by western manufacturers as well.

During his training seminars, Deming conducts what is known as “The Red Bead” experiment. Unfortunately, the comedy of promoting good workers, firing underperformers, and urging improved performance with no control over the components of a process is largely lost in videos of him running this himself, given that he was well into his 90’s when recorded. His dry humour is a bit harder to spot than it would have been earlier in his career – when he openly acknowledged that some Japanese managers routinely imposed the same class of bad metrics on their staff as those of the worst examples he found in the West.

If you can buy a copy of his seminal book Out of the Crisis, you can see the full description between pages 109-112, in Chapter 3, “Diseases and Obstacles”, following the subtitle “Fair Rating is impossible”. Something the Home Secretary, and all echelons of Managers in the Public Sector, should read and internalise. If they did, I think the general public would be pleased with the changes i’m sure they’d enact based on his wise knowledge.

In the absence of an original Deming version, a more basic version of the same “your job security depends on things outside your control” sentiments can be found on this (it’s around 2 minutes long):

or a longer 24 minute version, truer to the original real McCoy:

Treating Employees right – or how to freak your Manager out!

Joker Playing Card

I’ve always been impressed with the output of Scott Adams and his Dilbert books. He did a sterling job in two of his books after reviewing the stupidity that happens in offices around the world, but then asked the intelligent questions. Like, if what it says in your Job Plan or your Personal Objectives is so bad, what would one that did things properly look like?

One of the gold nuggets in the appendix of one of his books was what he termed the “Out at 5” or “OA5” plan. At one fairly young company down my career, I employed two recently minted Marketing Graduates. In the absence of any template used by the company at that stage, I stole the theme completely – and the result is below.

When I moved to be a Director of the Software Business Unit at Computacenter, I asked my boss if she was okay with me using the same form of OA5 plan for all my employees there. She read one and sort of freaked out. I understood her concern after she explained her nervousness: that people would take advantage of the words literally, albeit my experience was that people followed the spirit of it instead – and worked hard regardless. So, in that instance, I filed it away and used the Corporate standard process in place instead.

I nevertheless executed using its sentiments – and ensured that if there was a vendor conference in the USA, it was my newly minted Product Managers that went on behalf of the team (they after all needed the context to explain how developments fitted in with future product roadmaps – better they know and impress people with their authoritative knowledge, rather than having to defer to me all the time). They always grew in stature very fast by being thrown in at the deep end (albeit with a safety rope to tug on if ever needed), and were a joy to see blossom into key employees of the future.

Pity I couldn’t put things in writing though. I found some of the same sentiments in the excellent ROWE (Results Orientated Work Environment) Books, though explicitly offering clock off time to go to the cinema mid afternoon, or to work remotely for an extended period of time, would have been a tougher management sell at the time. That said, I always found everyone enjoyed their work more with the below in place. This is a real plan, bar names and dates removed to protect the innocent!

OA5 Plan: (Employee Name)

You will sometimes find yourself surrounded by people who have different goals to you, who will unknowingly do things that undermine your projects, or that generally behave outside the best interests of (Company Name). Your task is to rise above this, and despite all obstacles, deliver:

  • 180,000 subscribers by the end of (date)
  • Complete the National Advertising for (4 month date span), including the test of a radio campaign
  • Complete the Corporate Brochure, Welcome Packs and other tasks that we mutually agree that you should execute
  • Full participation as a member of the Marketing Services Team
  • Help your Manager put together a spend plan for the new financial year starting (date)
  • Tests of everything you do. It’s a much safer world if we get to know what works, what doesn’t, and that we’ve learnt. Within the bounds of experimental exercises, we should strive for continuous improvement

Functions of your Manager

In support of the above goals, your Manager will assist in the following ways:

  1. Eliminating Assholes. If anyone or anything is standing in the way of you meeting your objectives, please seek assistance to get the obstacle cleared. It is his role to absorb uncertainty and to provide an environment where you can deliver your projects unhindered. We want you to enjoy your work and be proud of your achievements.
  2. Your manager will do his best to provide an environment where you are learning (and helping the company learn) every day. Requests for training are welcome. Sharing of ideas and distribution of your learnings to your Manager and your colleagues, ideally in small digestible chunks, is encouraged. And you are expected to make mistakes; that’s the way we all learn.
  3. Seek forgiveness, not permission. In the same way you can escalate issues to your Manager, there will be times when the data, or key staff, aren’t available for us to hit a key decision deadline. Time to market is key; having weighed up the pros and cons, make the decision that you believe is right for the company, our customers, and preferably both.
  4. Building your Personal Network. It’s often a case of who you know; contact with suppliers, customers and other departments in (Company) is actively encouraged. Please keep details of everyone you talk to, and don’t be afraid to seek advice from anyone with pertinent experience that you deem appropriate. The strength of your Personal Network – particularly outside the company – should build to be a significant personal asset.
  5. Timekeeping and Attendance. We wish to provide an environment where you can discharge your commitments between 9:00am and 5:30pm. If there are times when you prefer to work from home, or from another location, please let us know your whereabouts so we can find you if needed. Should you work extended hours (attending press announcements or any work related activity outside hours), you may take this time off in lieu; again, please let us know so we can correctly set expectations of anyone that asks for you.
  6. No Retribution. Your Manager is available to help in any way, at any time, day or night. However, if anything concerns you in any way, you are free to talk to (Manager’s Manager name), any other Director, or the Personnel Department directly.

Manager: Ian Waring
Office: (office direct dial phone number)
Mobile: (work mobile phone number)
Home: (Home phone number)
Email: (Work email address) or (Home email address)

“Big Data” is really (not so big) Data-based story telling

Aircraft Cockpit

I’m me. My key skill is splicing together data from disparate sources into a compelling, graphical and actionable story that prioritises the way(s) to improve a business. When can I start? Eh, Hello, is anyone there??

One characteristic of the IT industry is its penchants for picking snappy sounding themes, usually illustrative of a future perceived need that their customers may wish to aspire to. And to keep buying stuff toward that destination. Two of these terms de rigueur at the moment are “Big Data” and “Analytics”. There are attached to many (vendor) job adverts and (vendor) materials, though many searching for the first green shoots of demand for most commercial organisations. Or at least a leap of faith that their technology will smooth the path to a future quantifiable outcome.

I’m sure there will be applications aplenty in the future. There are plenty of use cases where sensors will start dribbling out what becomes a tidal wave of raw information, be it on you personally, in your mobile handset, in lower energy bluetooth beacons, and indeed plugged into the “On Board Diagnostics Bus” in your car. And aggregated up from there. Or in the rare case that the company has enough data locked down in one place to get some useful insights already, and has the IT hardware to crack the nut.

I often see desired needs for “Hadoop”, but know of few companies who have the hardware to run it, let alone the Java software smarts to MapReduce anything effectively on a business problem with it. If you do press a vendor, you often end up with a use case for “Twitter sentiment analysis” (which, for most B2B and B2C companies, is a small single digit percentage of their customers), or of consolidating and analysing machine generated log files (which is what Splunk does, out of the box).

Historically, the real problem is data sitting in silos and an inability (for a largely non-IT literate user) to do efficient cross tabulations to eek a useful story out. Where they can, the normal result is locking in on a small number of priorities to make a fundamental difference to a business. Fortunately for me, that’s a thread that runs through a lot of the work i’ve done down the years. Usually in an environment where all hell is breaking loose, where everyone is working long hours, and high priority CEO or Customer initiated “fire drill” interruptions are legion. Excel, Text, SQLserver, MySQL or MongoDB resident data – no problem here. A few samples, mostly done using Tableau Desktop Professional:

  1. Mixing a years worth of Complex Quotes data with a Customer Sales database. Finding that one Sales Region was consuming 60% of the teams Cisco Configuration resources, while at the same time selling 10% of the associated products. Digging deeper, finding that one customer was routinely asking our experts to configure their needs, but their purchasing department buying all the products elsewhere. The Account Manager duly equipped to have a discussion and initiate corrective actions. Whichever way that went, we made more money and/or better efficiency.
  2. Joining data from Sales Transactions and from Accounts Receivable Query logs, producing daily updated graphs on Daily Sales Outstanding (DSO) debt for each sales region, by customer, by vendor product, and by invoices in priority order. The target was to reduce DSO from over 60 days to 30; each Internal Sales Manager had the data at their fingertips to prioritise their daily actions for maximum reduction – and to know when key potential icebergs were floating towards key due dates. Along the way, we also identified one customer who had instituted a policy of querying every single invoice, raising our cost to serve and extending DSO artificially. Again, Account Manager equipped to address this.
  3. I was given the Microsoft Business to manage at Metrologie, where we were transacting £1 million per month, not growing, but with 60% of the business through one retail customer, and overall margins of 1%. There are two key things you do in a price war (as learnt when i’d done John Winkler Pricing Strategy Training back in 1992), which need a quick run around customer and per product analyses. Having instituted staff licensing training, we made the appropriate adjustments to our go-to-market based on the Winkler work. Within four months, we were trading at £5 million/month and at the same time, doubled gross margins, without any growth from that largest customer.
  4. In several instances that demonstrated 7/8-figure Software revenue and profit growth, using a model to identify what the key challenges (or reasons for exceptional performance) were in the business. Every product and subscription business has four key components that, mapped over time, expose what is working and what is an area where corrections are needed. You then have the tools to ask the right questions, assign the right priorities and to ensure that the business delivers its objectives. This has worked from my time in DECdirect (0-$100m in 18 months), in Computacenter’s Software Business Units growth from £80-£250m in 3 years, and when asked to manage a team of 4, working with products from 1,072 different vendors (and delivering our profit goals consistently every quarter). In the latter case, our market share in our largest vendor of the 1,072 went from 7% UK share to 21% in 2 years, winning their Worldwide Solution Provider of the Year Award.
  5. Correlating Subscription Data at Demon against the list of people we’d sent Internet trial CDs to, per advertisement. Having found that the inbound phone people were randomly picking the first “this is where I saw the advert” choice on their logging system, we started using different 0800 numbers for each advert placement, and took the readings off the switch instead. Given that, we could track customer acquisition cost per publication, and spot trends; one was that ads in “The Sun” gave nominal low acquisition costs per customer up front, but were very high churn within 3 months. By regularly looking at this data – and feeding results to our external media buyers weekly to help their price negotiations – we managed to keep per retained customer landing costs at £30 each, versus £180 for our main competitor at the time.

I have many other examples. Mostly simple, and not in the same league as Hans Rosling or Edward Tufte examples i’ve seen. That said, the analysis and graphing was largely done out of hours during days filled with more customer focussed and internal management actions – to ensure our customer experience was as simple/consistent as possible, that the personal aspirations of the team members are fulfilled, and that we deliver all our revenue and profit objectives. I’m good at that stuff, too (ask any previous employer or employee).

With that, i’m off writing some Python code to extract some data ready ahead of my Google “Making Sense of Data” course next week. That to extend my 5 years of Tableau Desktop experience with use of some excellent looking Google hosted tools. And to agonise how to get to someone who’ll employ me to help them, without HR dissing my chances of interview airtime for my lack of practical Hadoop or MapR experience.

The related Business and People Management Smarts don’t appear to get onto most “Requirements” sheet. Yet. A savvy Manager is all I need air time with…

The “M” in MOOC shouldn’t stand for “Maddening”

Mad man pulling his hair out in Frustration

There was a post in Read/Write yesterday entitled “I failed my online course – but learned a lot about Education”: full story here. The short version is that on her Massive Open Online Course, the instructor had delegated out the marking of essays to fellow students on the course, 4/5 of which had unjustifiably marked an essay of hers below the pass mark. With that, the chance of completing the course successfully evaporated, and she left it.

Talking to companies that run these courses to over a thousand (sometimes over 100,000) participants, she cites a statistic that only 6.8% of those registering make it through to the end of the course. That said, my own personal exposure to these things comes down to a number of factors:

  1. If the course is inexpensive or free, there will be a significant drop between the number of registrants and the number of people who even invoke the first lesson. Charges (or availability of an otherwise unobtainable useful skill) will dictate a position in each persons time priorities.
  2. The course must go through a worked example of a task before expecting participants to have the skills to complete a test.
  3. Subjective or Ambiguous answers demotivate people and should be avoided at all costs. Further, course professors or assistants should be active on associated forums to ensure students aren’t frustrated by omissions in the course material. You keep students engaged and have some pointers on how to improve the course next time it’s run.
  4. Above all, participants need to have a sense that they are learning something which they can later apply, and any tests that prove that do add weight to their willingness to plough on.
  5. The final test is meaty, aspirational (at least when the course has started) and proves that the certificate at the end is a worthwhile accomplishment to be personally proud of, and for your peers to respect.

I did two courses on MongoDB a year ago, one “MongoDB for Python Programmers”, the other “MongoDB for DBAs” (that’s Database Administrators for those not familiar with the acronym). Their churn waterfall looked to be much less dramatic than the 6.8% completion rate reported in the post; they started with 6,600 and 6,400 registrants respectively in the courses I participated in, and appear to get completion rates in the scale of 19-24% from then and ever since. Hence a lot of people out there with skills to evangelise and use their software.

The only time any of the above hit me was on Week 2 of the Programmers course, which said on the prerequisites that you didn’t need to have experience in Python to complete the course – given it is easy to learn. In the event, we were asked to write a Python program from scratch to perform some queries on a provided dataset – but before any code that did any interaction with a MongoDB database had been shown.

Besides building loop constructs in Python, the biggest gap was how the namespace of variables in Python mapped onto field names within MongoDB. After several frustrating hours, I put an appeal on the course forum for just one small example that showed how things interacted – and duly received a small example the next morning. Armed with that, I wrote my code, found it came out with one of the multiple choice answers, and all done.

I ended up getting 100% passes with distinction in both courses, and could routinely show a database built, sharded and replicated across several running instances on my Mac. The very sort of thing you’d have to provide in a work setting, having had zero experience of NoSQL databases when the course had started 7 weeks earlier. If you are interested in how they set their courses up, there’s plenty of meat to chew at their Education Blog.

MongoDB for Developers Course CertificateMongoDB for DBAs Course Certificate

I did register for a Mobile Web Engineering Course with iversity but gave that up 2 weeks in. This was the first course i’d attended where fellow students marked my work (and me them – had to mark 7 other students work each week). The downfall there was vague questions on exercises that weren’t covered in the course materials, and where nuances were only outlined in lectures given in German. Having found fellow students were virtually universally confused, an absence of explanation from the course professors or assistants to our cries for guidance, and everyone appearing to spend inordinate, frustrating hours trying to reverse engineer what the answers requested should look like, I started thinking. What have I learnt so far?

Answer: How to deploy a virtual machine on my Mac. How to get German language Firefox running in English. What a basic HTML5/Css3 mobile template looked like. And that i’d spent 6 hours or so getting frustrated trying to reverse engineer the JavaScript calls from a German language Courseware Authoring System, without any idea of what level of detail from the function calling hierarchy was needed for a correct answer in our test. In summary, a lot of work that reading a book could have covered in the first few pages. With that, I completed my assignment that week as best I could, marked the 7 other students as per my commitments that week, and once done, deregistered from the course. I’ve bought some O’Reilly books instead to cover Mobile App Development, so am sure i’ll have a body of expertise to build from soon.

Next week I will be starting the Google “Making Sense of Data” course which looks very impressive and should improve some of analytics and display skills. Really looking forward to it. And given the right content, well engineered like the MongoDB courses, i’m sure Massively Open Online Courses will continue to enhance the skills of people, like me, who are keen to keep learning.

What do you call a good version of “scarred for life”?

Pricing for Results Front Cover

There was an experiment some time ago where Students of a University were asked which lecturers had the most profound effect on their learning experience – 10 years after they’d left higher education. The names cited were rarely the ones that earnt the most, nor recognised for that achievement. I think I can relate to this in a couple of ways.

One from my education at Theale Grammar School – situated in the village of Theale, just west of Reading, who’s previous status as the half way stopping point on the two day London to Bath Stagecoach run blessed it with more pubs per head of population than any other village in the country. These days they call that route the A4, supplanted in most use by the M4 motorway in 1971 or so. I recall four morning assemblies of the hundreds served in my 7 years there (more detail in the footnotes if those are of any interest).

Secondly, while employed in my 17 years at Digital, I was blessed with many experiences that have had a material effect on several businesses since. The one standout has got to be two days spent in the company of John Winkler, who Paul Mears retained to take 30 of us through the art of Pricing; we did this in the surroundings of Newbury Racecourse in (I believe) 1992.

The first day ended with an overnight exercise to come up with a list of ways we could treble our retained profits based on learnings so far. Instead of going straight home, I took a detour back into my office in DECpark Reading, sat in front of my 19″ VAXstation, and started hacking around our recent sales transactions. Got home late, but was armed brimming with ideas for Day 2. Looked like countless ways of doing it.

Next day everyone gave their ideas, had some training on how to negotiate pricing, and were given guidance on how to behave in a price war. With that, the course finished, we thanked John and disappeared away into the night, armed with the training notes.

Fast forward to when I worked for IT Distributor Metrologie. They had bought Olivetti Software Distribution a year or so earlier, and moved their staff into the HQ office in High Wycombe. They were, at that point, one of Microsofts five distributors in the UK, all of whom were conscious of the vendors desire to reduce their Distributor line up. The guy brought in to run the Microsoft Business elected to leave, and in January 1997, Metrologie got slapped with what’s termed a “Productivity Improvement Plan”; basic Microsoft parlance for the path to the Firing Squad. Well, that’s what the Directors knew – I wasn’t told.

I was asked to park my other work and to go fix the Microsoft Business, and given a Purchasing Person who had ambitions to be a Product Manager, plus one buyer. We were doing around £1 million per month, 60% of the business through Dixons Stores Group, and (like most Microsoft distributors) tracking along at 1% gross margin.

The first few days were me just asking questions of reseller staff who bought Microsoft products from several distributors. Distribution staff turnover, lack of consistent/knowledgeable licensing expertise and price inconsistency across several phone calls were consistent concerns. We also had the concern of having one very large customer, who consumed peoples time like no tomorrow and had a few unfortunate ways of doing business:

  • obeying edicts from the top not to pay suppliers to agreed terms at certain points
  • routinely doing “reverse ram raids” at the Warehouse door, sending 40 ton trucks full of returned products for credit close to the end of a trading month
  • bad mouthing our performance in pursuit of a goal to trade directly with the vendor

We employed the learnings from John Winklers Course – in particular the guidelines of how to behave in a price war – and it worked with a vengeance. While the DSG business didn’t grow, the overall business went from £1m/month to £5/month in four months, and at doubled margins. Due to the dynamics of how a Distribution business works, and major suppliers being very strict on payment terms, I learnt how “overtrading” feels at close range. But at that point, i’d been headhunted for a role at Demon Internet, but extended my notice by 4 weeks in an attempt to avert the Firing Squad which i’d since learnt about on the journey. We already found we weren’t being invited to Microsoft Social Events that our status should have conferred on us.

I went into a meeting at Microsoft with my Chairman and the Group Marketing Director from France; their body language going into the meeting was all wrong, and we were told that despite our recent performance, that Microsoft were going to lose us as a Distributor. We lodged an appeal, and I left to my new role in Demon Internet; Product Manager Tracy left shortly afterward to a Software Business Manager role at reseller BSG, doubling her salary in the four months we’d worked together. A week in, I got a phone call from my immediate ex-boss, Bob Grindley, to be told that the Microsoft Contract had in fact been retained.

I learnt one set of very useful guidelines on how to measure and improve any business from our then Microsoft Account Manager, Edward Hyde, early in my time in that role – the core ones I still use to this day. That apart, the work on pricing I learnt from John Winkler made a material difference; I can think of no other reason that it took 4 months to grow the business 5x in revenue and 2x in margin in the middle of a 5-way price war.

The dirty secret is that the 2-day course is condensed into a paperback book entitled “Pricing for Results” by John Winkler himself. Now out of print, but if you’re quick, available for the princely sum of 1p plus postage from several third party sellers on Amazon. A real steal. Or you can hire me to assist with any business improvement project!

Pricing for Result - Back Cover Text

Footnote: John Winkler still appears to be running his Pricing Courses: www.winklers.co.uk/business

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Stand back! I’ve done the Free Online Course

596px-Google's_Lexus_RX_450h_Self-Driving_Car

In California, Google run a fleet of driverless Toyota Prius, Lexus RX450h and Audi TT cars. Laws are such that you do need a driver behind the wheel “just in case”, but they’ve done (by April 2013) over 435,000 self driven miles without a single accident to date. Even doing impressive things (if you have a spare 3 minutes, i’d encourage you to watch this video).

Peter Norvig and Sebastian Thrun are two Stanford professors heavily involved at that project at Google. In 2011 and alongside their work at Google, they opened their “Introduction to Artificial Intelligence” course at Stanford University for free – online – to anyone in the world who wanted to complete it. Over 100,000 subscribed, and with it started the Massive Open Online Course (MOOC) industry.

MongoDB used the same structure of online teaching to offer two free courses last year, nominally training people who wanted to program and administer databases using their market leading MongoDB NoSQL database. Armed only with my MacBook Air on my dining table, I joined over 6,600 other hopefuls to do their free, 7 week long, 10 hours/week M101P: MongoDB for Developers course. This included examples in Python, which we learned as part of the syllabus. I also joined over 6,400 other students doing the equivalent M102: MongoDB for DBAs course.

You learn from short videos with frequent knowledge test quizzes each week, up to 10 hours per week per course, but in start/stop gaps around your other work/personal commitments. You then have a set of homework exercises to run on your own machine, which have to be completed and answers posted on their portal within a week of issue. New videos are released every Tuesday morning at 4am UK time, and the matching homework is to be in within a week. At the very end, Week 7, you have a final summary and a final 10 or 11 final exam questions to answer that week.

There is plenty of help on hand from the instructors and a small number of teaching assistants on each courses forum, though many of the queries are answered by fellow students.

Some weeks, it was mad. I was sitting there on my dining room table, five weeks in, with a database split over three different replica sets and multiple shards, all running on my MacBook Air and running very impressively. I just sat there shaking my head at the affront of having the full complexity of the thing I built running in front of me. This from having no experience of MongoDB, JSON syntax, Python code, or of JavaScript at all when I started the course.

I was delighted to have finished both courses with 100% ratings — something achieved by 2.2% of the intake of the programming course, and 5.1% for the DBAs. The company, after 7 weeks, had an extra 9,000 or so professional advocates who’ve passed their exams since they started the previous year (this was the second time they’d been run). I was duly certified:

MongoDB for Developers Course Certificate MongoDB for DBAs Course Certificate

The product itself is very, very impressive, built to scale out as your needs grow. I was no less impressed with the execution of this training on the edX platform, as described eloquently by VP Education Andrew Erlichson on their blog at the time. Anyone looking to do the same courses I did (and now more) can find them at https://education.mongodb.com/

This year, I’ve decided to improve my ability to sift data from databases and to present it in compelling ways. I dislike tables of numbers, even throwing my wife’s heart monitor readings onto a Google Sheets graph for her doctor – not least to show her anxiety of having readings taken calmed back to normality close to the end of the sampling period, something not immediately apparent from the raw data:

Jane Blood Pressure Chart

I’ve been doing similar but business orientated things in Tableau Desktop Professional for over 5 years (exposing underlying trends, sometimes leading to spectacular business results), but I’ve no doubt I’ll learn new and useful techniques with a fresh perspective from Google and the tools they use. To this end, i’ve registered on their free Making Sense of Data online course and am ready to go (part time!) from March 18th until April 4th.

There are plenty of other courses available on a wide range of topics, most free, some with nominal subscription charges. Go have a gander at what’s available at:

So, lots to pique anyones interests, and to keep learning. Which courses are you going to do this year?