Andrew Lisy's Blog

It's been a terrible month for user data security. Epsilon and Sony, both high-profile and data-rich companies, have been breached and revealed sensitive personal data to hackers. In Sony's case, the 77 million users affected weren't even notified that their names, addresses and potentially credit card data were compromised until six days after the attack. Many speculate that in the rush to get out new product features, Sony neglected to carefully think through their security model for protecting the valuable user data they they stored. Clearly, the current system of data storage and retrieval is broken. As today's New York Times reports, there is currently no U.S. federal law regulating data theft, penalties, and notification requirements, so states are left to determine their own protocols. Companies have little downside to collecting troves of information, since the penalties for losing it are unclear while the benefits to having it are potentially great. Meanwhile, consumers have little or no control over what happens to the increasing amount of personal information that they give or leave as they interact online and in person with well connected businesses.

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These are the Glengarry leads. And to you, they're gold. And you don't get them. Because to give them to you is just throwing them away. They're for closers.

A few weeks back, Groupon, everyone's favorite startup, offered a nationwide Gap coupon -- $25 for $50 at Gap. By the end of the day, Groupon/Gap had sold over 400,000 of the deals -- over $10 million in discounts to customers purchasing the offer and likely around a 75% discount to Gap stakeholders after Groupon's cut. Based on their latest 10-Q (June 2010), GAP Stores has a gross margin of 42.1% (this is averaged across Gap, Old Navy and Banana Republic). Therefore, every $50 Groupon they sell has a cost to them in the neighborhood of $29 (technically a bit less, since a few costs like rent are fixed but included in the gross margin calculation). After Groupon's cut (assuming 50%), Gap receives $12.50, leaving a shortfall of $16.50. For Gap to break even, every customer entering the store must therefore spend an additional $40 (.421*$40=$16.84). So with the numbers out of the way, how does Gap, or any business, make this deal worthwhile? They key is how much value a company is able to extract out of a customer once they're in the door.

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When an organization is still in the small, startup phase, it's not hard to have employees that each feel like they have a stake in the company and are willing to rally behind it. As the company grows, however, subsequent employees get distanced from management and from company success, so it is easier for them to treat the job less like their own undertaking, and more like a paycheck. Too many employees treating their work as just a job will end up affecting company culture and ultimately, product. Identifying and rewarding torchbearers helps to ensure that the cultural message is effectively conveyed and carried out at all ranks.

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Jotted down in a file I keep called "life rules", I have a simple phrase. Create, don't destroy. It sounds trite, and perhaps it is. But I firmly believe that the most successful people in the world follow this principle every day, whether or not they have specifically written it anywhere. While it may not make you rich and famous, if you spend your time creating instead of destroying, it will undoubtedly make your life far better.

What does it mean, "create, don't destroy"? There are countless opportunities every day where we make decisions to add to or subtract from something. Projects at work started by an adversary that you'd rather see fail, cynical observations that don't have any constructive benefit, favors that you could easily do for someone, but choose not to -- these are all chances that we have to build on something, but instead choose to detract from it. There are all sorts of underlying roots -- jealousy, political gain, personal grudges -- but in each case the effort in the task is designed to undermine.

Instead, spend your time improving anything and everything you can. Even if you secretly want a project to fail, put that aside and contribute earnestly. It might feel good or be easy to criticize or be cynical, and often it is. Far more difficult is actually helping out and building. You'll find, however, that those that build are far better rewarded and end up far happier than those that destroy. Creation itself is an additive process -- the more you create, the more you'll be able to create. Why waste effort in making something fail when you could have a hand in making it succeed?

The most successful companies are the ones that work every day toward building what I call a "culture of ideas". Google is the prime example of this -- if you work at Google, you're encouraged to spend 20% of your work time on ideas that interest you. Think about this -- Google "loses" one day a week of productivity from their workers while they pursue projects that they find interesting! Dig a little deeper, however, and you'll find that it is anything but losing for Google. In fact,

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As legend has it, the humanities program at MIT was started by an MIT president who quipped "too many MIT graduates end up working for Harvard and Yale graduates". The thinking then, which remains to this day, is that engineering classes make a person narrowly focused whereas humanities classes help a student to see the full picture. Although I can see some truth in this, I would argue that a person is far better equipped to be a great manager having taken engineering than its "softer" alternatives.

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Of all the recent trends in online computing, the one most game-changing is the trend toward developing platforms and allowing users to build applications on top of them. The greatest example of a platform on the web is Facebook, which started as a simple social network, but by opening up to third party apps, has become the most important web development since Google. Platforms allow downstream developers to wield the entire power of the "parent" to create interesting and valuable applications without requiring massive resources to lay the groundwork for the basic functionality. The reason platforms are so important is that they allow developers to use massive technological leverage. To illustrate this point, lets use the example of Dropbox, an outstanding online backup application.

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I just got off the phone with 1-800-Flowers.com. I had tried to get flowers sent to the hospital yesterday, but they failed to deliver them, so I canceled the order. I called back today to try to re-enter the order with a different address, and finally gave up after speaking to several apathetic employees and getting left on permanent hold. The pivoting issue was a minor one related to a gift code, but their seeming unwillingness to even attempt to solve my problem ultimately caused me to go elsewhere.

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Any site on the internet requires visitors to be successful. For social networks, this is even more important, because the quality of the site is defined largely by the quality of user interactions and contributions on that site. About 6 weeks ago, I started up a site, The Free Agents which caters to people between jobs. Its a social network where people can share their experiences and meet others in the same situation. Over the last several weeks, I've been working hard to promote the site. I have no formal training in marketing, so my efforts have come mainly from trial and error and also from advice from marketing professionals, both through their blogs and from actually speaking with them. There are other guides on the internet about generating buzz for your website, but most of them are long on generalities ("Know your goals") and short on details. This guide is an attempt to nail down some of the strategies that have worked for me, and help others that are getting involved in the social marketing landscape. Disclaimer: this is a work in progress, so I have inevitable missed some key points or approached some things in an unusual way. I welcome your comments below!

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When I was 8, I got a 14.4 modem and an AOL dialup subscription for my birthday. It was one of the best presents I've ever received, and I quickly started exploring all that AOL had to offer. Soon, I started to wonder how web pages actually got on the internet, so I found AOL Personal Publisher and started messing around. In most cases, 8 year olds don't have too much to contribute to the world, and I was no exception. I just wanted to create a web page for something, so I settled on one thing that was well known to me and friends -- video games. I created AJ's Code Page (specializing in infinite lives, double damage, god mode, and the like) hosted on the now-defunct members.aol.com, and started trying to figure out how to get users.

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