All posts by steve@kerrzone.com

Random thoughts – keeping you on your toes

How is value determined

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A bit of a continuing theme for me, today’s post is about a discussion I had the other day about the nature of value

Eye of the beholder

Determining and measuring value can be very elusive.  Consider diamonds versus water.  (This not an original idea on my part but was rather shared as part of the discussion.)

Diamonds availability is limited.  They are considered by many to be worth possessing, although their main function is decorative.  So typically we think of diamonds as valuable.  Water is relatively readily available often obtained free ( e.g a glass of water in an eating place). So on the whole of medium to low value in terms of normal supply and demand.

In the desert,  water is scarce.  If you did not bring a supply with you on a trip to the desert obtaining water would trump finding diamonds and so would be more valuable. On the other hand if you had brought water you might focus on finding diamonds in the desert as the more valuable commodity.

Value is contextual

The example of diamonds versus water illustrates your personal view of how important a commodity or service determines it’s value.   This value assesment can can change with time and context.

On the whole things that affect value (supply and demand being two key ones) can be predicted and used to help assess how likely a thing may retain or even grow in value.  (or drop in value, consider a used versus new car).

And the point……..

Today is really just a random musing about the nature of value.   I will continue to muse on this topic on and off,

 

Random thoughts – keeping you on your toes

Cultural Norms

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A group of people in defined geographic proximity,  with regular contact and some association (e.g. same country, city, workplace, etc)  form cultural norms.   That is behavioral standards for interaction with others.

At any time an individual may belong to overlapping cultures with somewhat integrated standards but the level of detail can vary according to the context of the environment (work,  country).

Cultural Sterotyping

At the country level cultural stereotyping can be quite common.   For example: Canadians are polite, Americans self centered, Germans industrious and so on.

This attributes are not necessarily universal across all the citizens but on the whole the sterotype often defines the behaviorial expectations of people from those countries.

Some interesting  examples I have experienced

As a Canadian in Japan I learned that generally people do not wear shorts in fall and winter months. Even though mid day average tempurature in October can be in the mid twenties degree celcius. This is a dress code that is understood to be the norm even though it is not really comfortable nor logical.

In the work place some companies expect male employees to wear a business suite or a uniform.  This can vary within the company depending on the role.  Except for saftey equipment mandated by law the dress code is just a cultural norm set by the organization. In general,for the purpose of not standing out we follow these cultural norms.

 Follow or be considered strange

Not following the norms can lead to lables such as that person is strange or an exhibitionist.  In reality though often these non conformists are some of the most important contributors to our culturals by keeping them vibrant and alive.

 

 

 

Random thoughts – keeping you on your toes

No frills airlines

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Recently had a couple of flights on no frills airlines.  Interesting things I noted:

  • All had names that were colors (rouge, peach, jet blue)
  • Flight attendents and pilots were all very young (cheaper salaries I guess)
  • Saftey demonstration was not on video but actually walked through Vana White style
  • leg room is not really enough for a tall person.

I was also told that myth busters TV show had demonstrated that loading by zone was faster than by seat number or fully random. Not  sure my experience bore this out about faster loading, although for this recent experience I had, I will say all flights left on time.

Does the business model make sense?

Clearly there is a market for inexpensive travel.  Of course it must appear safe, be efficient and although you pay for each service the quality of services must be acceptable.

If your personal air travel goal is to simply get from a to b at the lowest cost with minimal or no value add services a no frills airline is probably a good choice for you.

Are full service airlines at risk.

Its probable the air travel market for full service airlines (which currently have the largest market share worldwide) will continue to be strong and will remain the largest with value airlines serving a smaller but important segement of air travellers.

Random thoughts – keeping you on your toes

More thoughts on Board Games

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Ranking dot com has a listing of the seventy-six top board games of all time, 76 Best Board Games of all Time.   I have played twenty-four of the games listed, or just under a third.   Interestingly I have played eight of the top ten games (80%).

Last night we played “Payday” a Parker Brothers game introduced in 1975.  In it’s first year of sales more games were purchased than Monopoly.

Payday is number sixty-nine on the list of all time best board games.

Whats are the elements of a popular board games?

The number one most popular game is Chess and number two is Monopoly.

Although Monopoly game was first published (and thus began it’s climb to popularity) in 1935, the game was actually invented in 1903 as a teaching aid to demonstrate that an economy which rewards wealth creation is better than one in which monopolists work under few constraints and to promote the economic theories of Henry George and in particular his ideas about taxation and women’s rights.

Chess is based on the feudal concepts and the battle strategies of that time.  (Things like kings, queens and castles were prominent in feudal times when the game originated)

While the underpinnings of the game were forged from a specific purpose the current popular version incorporates what I think are the key attributes of a successful game.

  • align with basic real life scenarios so you can identify with the game
  • simple rules that work (easy to understand, easy to execute)
  • aligned with commonly accepted values (in this case things like; right of ownership, individuals ability to choose freely)
  • A fair balance between risk and reward based on luck and skill
  • appeals to all demographics – that is neither focused on young/old, male, female, specific races, etc.
Random thoughts – keeping you on your toes

Gifts – giver or receiver

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About ten years ago my mother clearly and definitively advised her children (and their children) that she did not wish to receive gifts (birthday, Christmas or any other).

This is a wish the family has not been able to respect, although the gifts she gets these days are small and usually consumable (my mother has an understandable desire to stop acquiring things).   For me this is simply because, to some extent gift giving is more for the giver than the receiver.

I recently participated in a small celebration which included some gifts.  The recipient was appreciative but suggested for future occasions just a card or mild recognition was all that was needed.  Without thinking (I do that some times) I blurted out “But this is not about you”.

Following a round of polite laughter there was an interesting discussion where it was pointed out the target of the celebration (and gift receiver) was technically the point of the get together and therefore intuitively it was actually about them.  This point I do not argue, my comments were focused on the act of gift giving itself.

Charity

Recently I gave a large monetary gift to the United Way.  There could be lot’s of reasons for this:

  • tax break  (paying the government less money feels good)
  • supporting an organization whose work I respect
  • helping others who need the money more than I do
  • helping others to understand what a nice person you are

What is interesting to me though is to some degree all these reasons have a component that is about me, not the recipient and arguably it’s mainly about making myself feel good.

Not a bad thing

Being altruistic because it makes you feel good is not a bad thing.

Considering the overall picture though, I believe the motivation for giving is not as important as the act of altruism itself.  Motivation is certainly very individual (it is about how the giver feels) and that is as it should be.

On the whole helping others appears to be an intrinsic human trait (with both nature and nurture drivers).

And the Point

If you want to give me stuff – give away.  I will happily accept in order to support your need to enhance self worth.

Random thoughts – keeping you on your toes

Managing your money

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The basic framework to money management begins with your overall objective.  This is supported by specific goals, overtime as performance to the overall objective is measured the specific goals may be modified.

Some go with multiple objectives, personally I have always been a believer in simplicity and focus.  You might have a number of specific goals (shorter term and changing over time) but the objective should be straightforward and longer term (15 to 25 years).

How it could work

Objective:  Have more than a million in joint net financial assets by age sixty-five

Goals:

  • maximize registered retirement saving plan contributions each year
  • maximize tax free savings contribution each year
  • Achieve a dividend return for total net financial assets of 3% a years
  • Minimum internal capital growth rate (i.e., net of new investments) of 5% (both realized and unrealized gains)

And so on …….  (You could have goals around asset mix, interest income, etc)

The key thing to note is each goal is very specific and easily measurable, that is either it was obtained or it was not.

What Next

Use the specific goals for detailed planning.  Consider how to achieve the goals using the tools at hand.  I have previously done a number of posts about things like financial and retirement planning.  This posts provide some good ideas about the many of the tools and techniques you can use to assist with achieving your goals.

For example, if a specific goal is to maximize your TFSA contribution each year, financial planning tools can assist is defining an approach and the associated steps to achieving this goal.  Intuitively it’s pretty obvious you are more likely to achieve the goals with planning than otherwise (although with luck goals can be achieved randomly too).

Why Bother?

One of my favorite sayings is “If you don’t know where you are going, how can you plan to get there and when you arrive how will you know it?”  Setting your objective is the first step in answering that question.  Specific goals provide the flexibility to change direction over the long term,  as to how you achieve the objective.

 

Random thoughts – keeping you on your toes

Rock Concert Nostalgia

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I have to tickets to an upcoming rock/pop concert.  Thinking about it I realized how much the “rock” concert has changed.

The first popular music concert I attended was the Monkees in 1968.   The opening act was 1910 Fruitgum company.  Since then I have been fortunate to attend more than forty major concerts including some of the most popular classic rock acts of our time.

As I think back through the years and the various shows I realize how they changed from an loud roughly planned musical event to a highly choreographed and practiced event with a multitude of props, light shows and special effects.

The original rock concerts were four or five guys (occasionally including a girl) on a bare stage with a minimal light show (basically just spotlights on the performers).  Today it is the full on extravaganza.  The props and special effects are both expected and needed to meet the entertainment expectations of today’s generation.

I saw Al Stewart in a small club with a capacity of about one hundred.  From my seat I could reach out and touch his piano.  (Al Steward had a number of billboard top 10 hits including the Year of the Cat which was probably his most popular song),

Which is Better?

I have immensely enjoyed the experience for all rock concerts I have attended both minimalist and those that were major events.   For me the vibrancy and life of a live performance cannot be duplicated on video or other medium.

So for my upcoming concert I am expecting, dancers, backup singers, special effects and grandiose choreography and looking forward to it all.  That being said though, it is still the star and their talent that make the show whether an extravaganza or not.

A great entertainer is great, no matter what the skin – although seeing Alice Cooper loose his head to a guillotine or Ozzy Osborne bite a live bat ( both of which I have seen) is pretty cool.

 

 

Random thoughts – keeping you on your toes

Shifting Demographics

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Stats Canada reported that based on current trends white people could be a visible minority in the cities of Vancouver and Toronto by 2017.

How cool is that?  And who cares about the color of your skin, your cultural or religious practices.   Living together peaceably and enjoying each other is the foundation of great societies the color of your skin or historical background mean little to me.

Here’s another interesting statistic

Stats Canada reported there are more adults than children in Canada right now.  Less children now mean less adults later.  If the older adults need younger adults to help support them this could mean trouble, maybe the children will take care of them.

Changing Demographics, Good or Bad

I don’t consider the shift in populations, age, skin color or cultural background to be either beneficial nor detrimental.  I include the shift to an older population but I can see some challenges arising with that shift.

Overall though, it is just change, a very natural occurrence.   I alluded to this in yesterday’s post about innovation, change in and of itself, whether the specific results are positive or negative is on the whole, good.

” Change is good” is a personal value of mine and I embrace it.  Change is a foundation of a vibrant life.

Diversity makes Canada great

Whether you are a member of the majority or a minority is irrelevant.   The collective whole of a diverse society leads to vibrant population with a powerful depth of knowledge and experience.

I for one am looking forward to 2017, it’s enough to get me to move to Vancouver or Toronto (both great cities, which I have lived in and enjoyed in the past).

Now I just need to find two million dollars to buy a shack to live in.  Maybe house prices will level off in those cities by 2017.

 

Random thoughts – keeping you on your toes

Are you an Innovator

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The most common definition for “innovation” is the creation (including implementation) of a new idea, more effective device or process.

What’s the personal benefit of being an innovator?  I guess the first question should be “Is there a personal benefit to being an innovator?”   My own answer is yes, read on for more.

Corporate Innovation

There is a lot of information about the value of Corporate level innovation to your country, province or city.  Basically the introduction of a new idea, more effective device or process is linked to economic growth.  The region benefits from economic growth so innovation is good.

In the reverse, lack of innovation lets your competitors get ahead of you and obviously that can be detrimental.  A classic recent case of this relates to mobile phones.  The company Research in Motion (now called Blackberry) came out with the smart phones predecessor and made millions ultimately becoming a technology company with a market capitalization in the multi-billions.  This was followed by Apples innovation of the actual smart phone which blew Blackberry out of the water and today people are asking “Where are they now?” about Blackberry.

This example has both cases.  First the positive where innovators are making lots of money and creating a positive economic influence (in this case for their country, province and city).  And the negative where lack of innovation led to rapid decline.

Back to the Personal Concept

Can we apply the innovation logic at a micro level, that is to you personally.  I believe so.    One of my favorites quotes is Albert Einstein’s definition of Insanity: doing the same thing over and over again and expecting different results.

Innovators by definition do something different.  Are the results always positive, not necessarily but if you don’t try something different don’t expect improvement, that is probably nothing will change.

So if you want to be the driver of positive change, you must to some extent be an innovator.

My assessment is personal innovation won’t always be positive but lack of innovation will most certainly be negative or at the least static in it’s impact on your personal goals.

Personal Innovation – give it a try!

Random thoughts – keeping you on your toes

E-mail Conversations – Really

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From wikipedia:

“Conversation is a form of interactive, spontaneous communication between two or more people. Typically it occurs in spoken communication, as written exchanges are usually not referred to as conversations. The development of conversational skills and etiquette is an important part of socialization.”

When an email topic exceeds two messages – the original message and a response, it in effect becomes a conversation.   The main problem with trying to have a conversation using e-mail is the typical conversation skills and etiquette is lost.

Conversation, by definition, does not occur in written form, however, when an e-mail trail runs to ten or more messages (which is very common in an institutional environment) it seems to me it should have been a conversation.   What I mean is, while technically this is not defined as a conversation the type of communication needed is interactive and two-way; e-mail is not the place for that.

With dozens of people copied on e-mail messages I always think to myself,  ” Get a room, please”.   Often when I am copied or forwarded these horrendous e-mail trails I feel like an eavesdropper, albeit not secretly, as they know I am there.

Most Important Reason not to hold e-mail conversations

Conversations, e-mails, blogs, social networks, and so on, are all ways we communicate with others.  The basic objective of communication is to either tell someone something or for them to tell you.   The communication method depends on what is being communicated.   Email is best for capturing agreements or documenting facts – this allows for one response – I agree or I do not agree (which can be followed by a conversation).

As soon as the topic requires ongoing interaction – that is beyond one reply/response – almost as a rule e-mail is the wrong vehicle.  A key reason for this is discussions, debates and arguments all need to have standard conversation etiquette applied to them if they are going to remain civil and also succeed in achieving the ultimate goal – a meeting of the minds.

A simple suggestion

I recommend you always go voice to voice or face to face if you get an e-mail reply you want to respond to.  That is, one message -one reply – end of trail.  At that point is more discuss is needed have a conversation in person or by phone.  After that conversation, if a point of agreement needs to be captured in writing send a new email documenting the agreement, at this point the old e-mail trail is over and should be left alone.