Back to Basics: Budgets

 

     Among the many things I wish my children had been taught, while in school, to prepare them for life in the "real world" is the aspect of budgets. We are fortunate enough to currently have adequate money to not have a very strict budget but it has not been many years (about ten, if I am counting) when I had to add the price of each item I put into the shopping cart, at the grocery store, to make sure I did not exceed our budget for food. It was not enjoyable.

     But, my (now 24 years old) middle son asked me how does a person make a budget (this was in response to my reply to him when he, once again, wanted an "advance" to take care of a birthday present that he had known, for a long time, was coming up). I just had to blink, give him a brief reply, and then hand him a copy of the household budget so he had a real life example (and so he would be aware of just how much money was going to where).

     A budget is very similar to a diet or balancing your accounting records (personal or business). You want the outgo to not exceed the income. (For budgets, it is okay for the outgo to be less than the income <smile>. For diets, it is the opposite.)

     The first, easiest, thing to determine is how much income you have. This includes all wages, automatic dividend dispersals, pension checks (including Social Security in the US), and such. Since (in the US) one has to come up with such every year when taxes are due, this should not be difficult.

     The expenditures come next. These are divided into fixed, recurring, and discretionary spending. Fixed items are those which have the same, known, amount each month (or day or week depending on how small of an interval for which you want to budget). Fixed expenditures includes mortgage/rent, Internet bills, insurance bills, streaming subscriptions, and so forth -- amounts that do not normally change between months. Note that it is always possible for a fixed item to increase (rarely decrease) as rates go up. Large businesses (and wealthy individuals) differ in that they have more possibilities for financing and investments but, otherwise, they should have the same budgeting requirements.

     One fixed amount that I suggest to have present, if possible, is to have a "set aside" amount of money that goes each month into savings, certificates of deposit, investments, work or national savings plans. During working years, as I talked about in an earlier blog, it is wonderful if you can have enough money, in easily accessible funds, to supply your household needs for six months. It is still a good rule in retirement as it can allow you more flexibility in when/what/how you extract money. This fund (even if it is not enough to support six months) can also be used for unexpected, larger, costs -- automobile repairs, dental work, medical costs (in the US).

     Recurring expenditures vary in their amounts but occur every month (or every regular interval, we pay for water/sewage once every three months). Our largest amount in this category is groceries. It is also the category that has gone up the most in the past three years since pandemic burrowing. I estimate our grocery bills have gone up 25 to 30% (which doesn't agree with official inflation numbers but that is another story).

     Since the exact numbers will vary, it is useful to include a maximum average amount in your list of expenses. Our gas/electric bill is lowest in Spring and Fall when we often are able to turn off the heater/air conditioner. It is highest in Summer as our need for cooling is greater (and more expensive) than our need for heating. This will vary upon personal desires and geographical location.

     The final category is discretionary spending. It is so very tempting to make this zero ($0.00) but it is not realistic in the long run. Try to be honest with yourself. How much do you need to buy books each month (never enough)? Or "on demand" or theater movies? How many pairs of shoes or new shirts?

     Now it comes down to arithmetic. Add up all of the items in the three categories. This is how much you would like to have to spend. If the amount is less than income, rejoice and allocate more to savings/investments. If the amount is more than your income, look at each of your discretionary items and see which ones you think you can honestly reduce for the long term (most of us can reduce an area for the short term). Add them up again. Look over discretionary once more. Try again.

     If cutting discretionary spending is not enough, then look at the maximum averages you have set for recurring amounts. Can you set the thermostat for heating two degrees cooler? Or three degrees warmer for the air conditioner? Do you really need four separate streaming subscriptions? Cut and add.

     Still not in balance? Here you have two main paths. If you have sufficient savings/retirement investments to last as long as you expect to live, you can withdraw that deficit each month (this is when you determine the amount of deficit budget to pull out from savings). That is one path. (For us, during a 15 year period of declining income, we remortgaged twice to pull out equity).

    If that is not possible, try to get a better income job (or, if required, a second job). Prepare to move into a smaller living area or one in a "less desirable" neighborhood. You have to either reduce expenses or increase income (or both).

     Of course, you can do as many do and pray for something to change for the better. And it can happen -- but counting on it may put you into a situation where you are unprepared and that may mean drastic changes (homelessness, food banks, etc.).

     And that is the world of budgets. Income equals outgo. Of course, budgets only work if you keep within the numbers you have determined (don't spend more than allocated and continue to have the expected income).

Traditional: All in the time slice

 

     I have had my hair short. I have had my hair long. Once upon a time, I had more hair. But, I am a traditionalist. My great-great-uncle had his hair long in a ponytail and a beard that went below his waist (he would have given ZZ Top a run for the money). So, as a traditionalist, I am presently having my hair (what is left of it) long. My beard. Well, it just isn't amenable to growing that long -- I guess I missed out in the gene pool.

     At times, people use the word "traditional". What they mean (whether they acknowledge it or not) is "traditional since some date in their past". That date might be over a thousand years ago. It might be as of when they had their first Thanksgiving meal at their home as a new family thirty years ago.

     There are many who might say that having short hair is the traditional, expected, fashion in men's hair. Yet, this has only been the usual thing since about the time of Woodrow Wilson (early 1900s). Before that, hair fashion for men was in flux. Some had long hair like my great-great-uncle, more had shoulder length hair. If you look at a photo of the Lincoln - Douglas debates (1858), you will see Lincoln with short hair and Douglas with shoulder length hair. In the crowds, you will see fully shaved men as well as full beards and mutton chops and handle-bar mustaches.

     Go back another century and you have the "Founding Fathers" with ponytails in their youth and very short hair as older adults (to allow easier donning of their powdered wigs for formal occasions). Once you get into the 1800s and before, however, you primarily have documentation of the wealthier, more newsworthy, people and their living habits. What the majority of working folk wore and did was located primarily in family albums, journals, and diaries.

     Of course, tradition doesn't just apply to fashion. Our family has a special Christmas morning meal. Why? Because my wife had such. Why did she have such? because her grandmother had such. When did it start? Who knows? Or small variations. We had a tradition of opening ONE present on Christmas Eve? Why? When? Does your family have traditions whose origins are unknown?

     Occasionally a family will state explicitly "we're starting a new tradition"! But most traditions just occur out of habits -- and some traditions will be solidified into societal expectations. One of my uncles supported his mother, father, and (as I remember) four siblings through the Great Depression by being a barber. Sometimes he was paid in chickens, eggs, or a slab of bacon but all was useful to the family. During that period of US history, males would do their very hardest to have a short haircut, a shaven face, and a hat. They would use any money they had for that before paying for a meal. Tradition was something to hold onto tightly during the Great Depression and traditions often become tightly held societal requirements during times of great stress, wars, or economic depression.

     Note that I speak only about the men. Women have, and had, their own traditions but I haven't delved into those enough to talk about them well. Sometimes, especially within family traditions, the traditions will be in common. However, traditions are always "since ..." whether it is recognized or not.

Imposter Syndrome: Am I who you think I am?

 

     Once upon a time, I was scared to death of public appearances or public speaking. Then I started being part of plays in school. When I stepped onto the stage, I was no longer Charles Summers, I was Mr. Paravicini or I was the Mayor Munchkin or a member of the chorus in Bye Bye Birdie. Whoever I was, I wasn't myself. Therefore, whatever you thought of that person on the stage, it wasn't about me.

     A person doesn't have to be physically in front of others to feel reluctant to be there. Every time I write a blog, or a book, or a response to a message on social media, I know that I am subject to attacks -- either because they DO understand what I have said and disagree or because they do NOT understand what I have said (and possibly never actually read it beyond a certain word that triggered some type of reaction) and feel the need to use me as a target for a need to vent.

     In the above two cases, I am either deliberately presenting an "imposter" as an overlay of myself or I am leaving open the possibility of being considered an "imposter". 

     But when the concept of "imposter syndrome" comes up, these (though closely related) are not what is meant. This is a situation where your self-image is out of sync with the image others have of you or the role within which you have been placed. The peculiar part of this is that both can be wrong, or both right, or neither right, or neither wrong, or any mix.

     Each one of us is a mix of history, self-concept, externally applied credentials, and projection.

     Most of us enjoy a challenge. We like to do things, to make things, to achieve things that we have never accomplished before. But it is impossible to both have the certainty that we can do it and that excitement of something we have never done before. Lack of certainty requires self-belief in order to move forward. Some have more problems with that. Some do not have "enough" problems with such (they do very reckless, impromptu things -- that occasionally pay off with success).

     The dominant use of the phrase "imposter syndrome" is that of being in a day-to-day situation where the needs change on a daily, hourly, or per minute basis. When needs match up with, or require fewer than, our skills and our confidence in our abilities, there is no problem. When it becomes a new situation requiring untested abilities (and perhaps abilities that need to learned quickly) then it becomes very uncomfortable.

     If the position you are in does not put you into this situation at least occasionally, you are not being challenged and you are unlikely to be able to grow in your abilities and experience. But what is the right amount? Untested challenges 10% of the time? 25% of the time? 40% of the time? At some point, most people will lose confidence in their ability to react, and learn, quickly enough. They are an "imposter" trying to fill a position for which they don't feel they qualify.

     As the saying goes, however, "no person is an island". Each of us is (or can be, some have problem interacting with others) part of a larger group. It does not require 100% self-confidence -- we can rely some (not all) on the confidence that others put on us. We do not have to be able to do everything 100% ourselves. We can delegate, we can cooperate, we can work out mutually supportive deals. That requires the recognition that help is needed and a specific type of self-confidence that allows us to ask for help and recognize that asking is a strength and not a weakness.

     We are all imposters at some point in time -- until we become (at least, in part) the character that we are fated to play.

Scooby Doo: What do We Learn from You?

 

     I love Scooby Doo. Before I decided to start eliminating weight, and bulk, and find new homes for DVDs (I eliminated laserdiscs before that) I had about 35 Scooby Doo DVDs. Now, since I subscribe to Boomerang, I can restrain myself form purchasing as much -- but I still have at least 15 in a digital locker available to stream. From the time that first series was produced for Hanna-Barbera Productions in 1969, there have been more than 13 series and more than 40 stand-alone video/movies.

     If one makes the reasonable assumption that they wouldn't keep making so many of this character if people didn't like it, then it is also reasonable to assume that people other than myself do like it. Why? Well, for one thing each character is easily defined and quite predictable. People like "cozy mysteries". Sure, people also like challenging reading but cozy mysteries are similar to "comfort food". No surprises, easy to eat and digest.

     Those predictable, stereotypical, personality aspects are not that lovable in themselves. Scooby and Shaggy are both gluttons and professed cowards (they are really braver than they allow themselves to acknowledge).  Both are also rather greedy and the comfort, and appetites, of others does not seem to be "top of mind". Velma (the one wearing glasses, of course) is brainy and lacking in social and physical confidence. Daphne is the klutzy appearance-important person and Fred is the person absorbed in traps and oblivious to the realities of others around him (poor Daphne). Each has occasional surprises (temporary or carried through in later features). Daphne learns martial arts. Velma starts pursuing Shaggy -- or others. Fred's relationship with his father pops up. And so forth.

     All of these are reasons why they are popular and why the characters, and series, go on and on and on. But, there is another aspect of the plots which is quite applicable to everyone's everyday lives. Perhaps everyone recognizes it at some level and it contributes to their popularity. But, the lesson involved rescues the characters from mediocrity and irrelevance.

     Disguised among various problems, specific villains or monsters, and a few added (usually temporary) personality aspects is a core plot without which it would not be a Scooby Doo episode. The "Cliff's Notes" summary of a Scooby Doo episode is "run away, run away, run away, run away, run away, finally stop running away then trap, catch, and unmask, the villain/crook/monster".

     Do you know of anyone whose solution to their problems is to run away from them? Has it ever happened to you? It's not always a bad idea to avoid a problem when a person is not ready to address it -- but that avoidance should be temporary. You want to reach the end of the episode and trap, catch, and unmask the problem. You need to drop the avoidance and the procrastination as soon as possible.

     Scooby Dooby Doo     

Happiness and Income Inequality: closely connected

 

     The image shown on this posting is from a study by Harvard Business Review researchers. It graphs the "overall well-being" of people in a country versus the income inequality of a country. Another way to compare is to use the "happiness index" of countries versus a listing of "income inequality" (this listing is actually for income equality -- to save me the need to reverse the list) for the countries. There is one outlier (Israel) but, otherwise, the top 15 countries on the happiness index (except for Iceland which was not listed in the happiness index that I found) were the same as the most income equal countries. I am not a statistician but I'm pretty sure that is very significant; minimum of 13 at the best of both lists.

     So, why should this be? The HBR researchers had their own ideas as shown in their paper. I prefer to take the approach of going into greater detail of what the lists mean. The income inequality list uses an index called the Gini index. The higher the number, the greater the inequality. However, a simpler way (which is part of the Gini index) is to check the concentration of wealth in a country.

     To make it easier, let us say that the country of TGT (target) has 100 people. That will mean that each 1% represents one person. If 1% (one person) of the population controls 20% of the wealth, that is very out-of-balance. This would mean that the remaining 99 people have 80% of the wealth -- or an average of .81% for each of the remaining 99 people. The person at the top would control 24.7 (20 / 0.81) times as much as each of the bottom 99 people.

     But, it is actually worse because the distribution of wealth is in an exponential distribution. If the top one person controls 20% of the wealth then it is likely that the next four people control another 20% of the wealth. Thus, the top five people control 40% of the wealth and each of the remaining 95 people controls 0.63% of the wealth -- or the top person controls 31.7 times as much as each of the bottom 95 people. Ah, But it doesn't stop there with an exponential spread. It would be likely that the next 10 people would control another 20% of the wealth. We now have 15 people controlling 60% and the remaining 85 people controlling 40% of the wealth. This equates to each of those 85 people controlling 0.24% or the top person now controls 83 times as much wealth as each of the bottom 85 people.

     So, who cares? How does this affect the happiness index? If that 0.24% is enough to meet all of the needs of those 85 people then it probably doesn't (but remember that the exponential spread has not stopped -- the bottom 20 people probably have VERY little money). But how realistic is that? It may be true that money doesn't buy happiness but having enough food, clothing, shelter, and hope is a very important ingredient towards being able to be happy.

     And that is the basic idea. The more that the wealth is squeezed into the "hands" of fewer people, the more people who are left with too little. The happiness index is based on the happiness of all 100 of the people of TGT. The greater the squeeze (concentration of wealth at the top) the greater number of people who don't see a way to easily live, let alone be happy with their lot.

     Ok, so who cares if people are happy? Ah, that is a philosophical and morality question and that does not have a single answer for everyone. Personally, I would greatly prefer (and am willing to have much less excess beyond what I need) to have more people happier. But, that is not a universal outlook.

     Beyond the philosophical and morality aspects, there are practical aspects. Lots of unhappy, desperate, people may eventually reach the point where they don't feel they have anything to lose trying to redistribute (possibly violently) the wealth so they can live. Also, that concentration of control does not inherently mean that that top 1% are all going to wisely make use of their economic control. Right before the Great Depression, income inequality was at its highest level within the past 100 years. Coincidence? Maybe -- I can't juggle the multiverses to find out but it is certainly suggestive and, looking at the Gini chart (yellow dots) shows that income inequality has already bounced back up to the level of about 1940 -- considered to still be part of the period of the Great Depression.

     Maybe not everyone cares about happiness for all but most would prefer to avoid another economic collapse. And when control of so much is in the hands of so few, it only takes a couple of mistakes for an avalanche of despair to happen.

Evolution: Change, Mutations, and Leaps

 

     Organisms change. They may be living or a business but they do change. The word "evolution" has a rocky history and is certainly not approved by all people. But I don't know of a better word which encapsulates the process of continuous change to fit the environment. So, evolution it is.

     Since the period of time that Charles Darwin took his journey in the Beagle and Gregor Mendel worked with his peas (and others unrecognized before, and after, them), people have noticed that things change. Not just geological change with volcanoes, floods, earthquakes, and other changes to the earth -- but changes to life. Moths change color to adapt to pollution in the air. Birds change their migration paths due to changes in the Gulf Stream current or whether El Niño is in effect. Foxes start having white fur when their range is pushed up into colder, snowier, territories.

     Changes in life take place at the genetic level. With the Human Genome Project, CRISPR, and other continued understanding, and manipulation, of the genetic code, exploring the mysteries gives us more answers. (Although, like almost every other area of knowledge, each answer generates multiple new questions.) One thing that has been found is that the genetic code has duplications, or redundancies, that appear to each facilitate the same growth process (often protein creation). Another thing found is that there are dormant sections that don't appear to do anything. How both of those work, and why they exist, are part of the continuing set of new questions.

     We recognize change when it affects behavior, or appearance, or some other quality that we can notice. Before it reaches that stage there are probably changes to the genetic code that are NOT observable. The only thing we can really say about such changes is that they are not immediately fatal. If the changes were fatal, then they would not propagate to the next generations. Once these non-fatal changes accumulate to the point of being noticeable, then the next step of winnowing is how it affects survival in the environment.

     Note that human technology has changed, and continues to change, how this survival mechanism works. We have more people needing glasses, or other physical aids, because we now have the technology that allows people to use their other attributes and still survive with their challenges of birth. Being severely myopic in the 16th century while living in the forest was likely soon fatal. It isn't a big thing in modern society.

     Each change in the genetic code is an aspect of mutation -- having something appear which was not there before. We also have changes in the individual genetic pools due to haploid combinations -- receiving different genetic material from the female and from the male and combining the material.

     When changes accumulated to start showing blue eyes rather than brown, they were noticeable. But sometimes the changes are VERY noticeable and these are leaps -- or quantum jumps in evolution. The changes were proceeding under the surface but now they surface. Although it is rarely (if ever) as dramatic as those presented within the "X-Men", once noticeable it can be considered a small change or a large leap.

     As a parent of two children on the autistic spectrum, I have read a lot of the (often) contradictory information that exists. One thing that appears to be (often) true is a change in the neurological configuration of the brain. Some groups call this, and the behavioral challenges often associated with it, a "disease" but I don't look at it that way at all. It might be an evolutionary jump -- such as suggested in the books "Darwin's Radio" and "Darwin's Children" by Greg Bear. Certainly, advances pushed forward by people of history who are thought (perhaps erroneously) to be on the autistic spectrum lend weight to that theory. These are people such as Albert Einstein, Anthony Hopkins, Isaac Newton, and Nikola Tesla.

     As for business. Changes can be deliberately encouraged or the result of smaller changes under the surface. Just as in genetics, smaller changes (which are non-fatal) can accumulate until something very different shows up.

Normal: A non-universal word

 

     In Japan, a well read feature in the newspaper used to be (I do not know current status -- it may be the same) to give the results of a survey of habits and methods. For example, do you brush the top teeth first or the bottom teeth first? Do you brush in a clockwise manner or a counter-clockwise manner or up and down? Do you wear socks to bed? Do you put your right sock on first or your left? Things like that.

     A Japanese cousin came to the US with a friend in the 1980s and they had a guidebook -- a standard guidebook that most Japanese tourists used. It had a checklist for each tourist destination for them to check off as they did, or saw, an event. If they met another Japanese tourist, they would compare checklists.

     Some cultures value the homogeneity of the group more than others -- but all have some degree of concern about "normal" behavior. This goal of conformity is not applied equally. In the UK, an unusual person of "upper class" is considered to be "eccentric" while working class people find the label of strange or crazy applied to them.

     So, normal is primarily a matter of blending in -- when it matters what others think about you. In many countries, being rich means NOT caring about what others think about you. In class-stratified societies, that will apply to the higher level classes.

     What is the value of being considered "normal"? Well, by definition, you are a part of a larger group who are more-or-less similar to you in thoughts and behavior and thus have a ready-made support group. If you are part of the primary "normal" group, then most people will be in that group and it will feel quite comfortable.

     It is also quite possible to be part of a non-primary "normal" group. The primary group, once again by definition, will consider you to be "different", "crazy", "abnormal", possibly even "bad", but -- similar to the primary group -- you will also have a group of people more-or-less similar to you upon whom you can rely for support and verification.

     Of course, this leaves the ones who are quite different and do not have any easily reached support group. But, within that scattered group of individuals they can still consider themselves to be "normal".

     What about those who are truly aberrant -- defined by an agreement within the groups of professional psychologists -- who may not have any support for their behavior? As long as their behavior only affects themselves, there is no harm in considering them to be in their own individual group of "normal".

     (It is a totally different thing if their behavior affects others or intrudes upon others' abilities to live their lives.)

Decluttering: When Less is More

 

     Once upon a time (about 8 years ago), I wrote about something I called "the houseboat principle". In sum, it was the idea that -- on a houseboat -- every time you brought something onboard you had to get rid of something. Otherwise the houseboat would eventually sink. Just like within newspaper/media topics and fashions, some ideas float back to the surface on a periodic basis.

     As part of our ongoing downsizing to prepare to move into a more permanent retirement  place, we continue to strive to eliminate the excess. However, excess is difficult to define and even more difficult to do something about. Why?

     The true core reason (I believe) is an underlying fear of change. There are excuses. These include "I might use that again in the future", "I paid a lot of money for that", and "I remember when I got that, it was at a store with great aunt Lulu".

     For different people, reasons for reluctance will vary. I fall primarily (I believe -- hard to clearly see oneself and our motives) into the "I might use that again ..." category. I can successfully argue myself out of the other categories. I have already spent the money so I won't be getting it back -- and it makes no difference whether I have given it to someone else who did NOT pay for it. I have recently recognized that taking a photo of something that triggers a memory can provide a much simpler, and less space consuming, trigger for the memory -- thus, I can take a photo and get rid of the object.

     As I said, I fall into that category of "I might use it again". And the hardest part is that it is SOMETIMES true. I have picked a book, that I last read 20 years ago, off of the shelf and read it again. I may actually make use of that pipe wrench I purchased for a plumbing repair 15 years ago. I have had to repurchase items that I know that I have given away in the past years. I have dozens of cables -- some of which would only be useful on equipment that hasn't been made in 20 years -- but I did need one ONCE. All true. Relevant? I am not sure.

     I have boxes of things in the garage that I have not opened, and accessed, for 25 years. How likely am I to use those contents again? Do I even know what exists within the box?

     But why? Why bother? There are people who are quite content to keep renting storage facilities for the next batch of overflow materials. For us, the prime reason is knowing that we will have less space in the future. But that also means less to move -- saving time, energy, and money. It is also difficult to argue with the likelihood that you can find something more easily looking through 30 items than looking for it among 300 objects -- no matter how well organized (even in electronic files).

     How about you? Do you have boxes you haven't opened in 10 years? Are you running out of room? Did you need a loan to afford a sufficiently large moving truck? What advantages are there for you to have lots of stuff around that you don't use? What advantages can you see in NOT having them around?

Daily Encounters: Remote/Hybrid thought work and the water cooler

 

     One of the things that gets mentioned a lot as the downside of people working remote, or hybrid, is how do people get to connect, discuss, brainstorm, etc. on an impromptu basis if they aren't face-to-face? This seems to be a very scary question for many managers and executives.

     Well, yes. Change is scary for most people. Change means things don't work the same, they can't be approached the same, new skills may be needed.

     In the old schema, groups met around the "water cooler" (figuratively speaking -- it might be snack machines or the company cafeteria). People had impromptu discussions in the restroom. During face-to-face meetings, people speak up and others can use facial expressions and reading of body language to get immediate feedback. Someone is not around? Put a post-it on their monitor so it must be removed first (no guarantee that they'll actually read it). Walking down the hall and seeing someone reminds you of their expertise and a problem you currently have and you discuss it. Of course, it is much different if the need is to physically work together in the laboratory or out on a construction site.

     Yes, these old scenarios worked for those for whom it did work. And they are the familiar, comfortable, situations in which you expect to communicate.

     But, guess what? These scenarios "worked" because those were the interactions being evaluated. People have diverse communication styles. An introvert may find it very difficult to ask a question in a meeting -- and wouldn't even think about asking someone, whom they met in a hallway, a question. What if you are a different gender and you would not be welcome entering the restroom to join that discussion? Some become invisible, because of personality or because of cultural biases, within a meeting. Certain people -- extraverts and alpha employees -- find it easy to put their ideas out into the pool. But not all.

     The basic reality is that the old ways don't work universally well. Yes, they do work -- for some (in some companies, possibly many). But there are many for whom they don't work and never have.

     "But that's the way it's always been done." A fact -- and impossible to contradict. But it does NOT mean that it always worked well or that it worked for everyone.

     Within all these scenarios, we are talking about communication. How can everyone be heard and acknowledged? How can people notice others and ask those questions, or have a discussion, to speed up work or start on the path to the next bleeding edge product? Perhaps new remote/hybrid viewpoints can be of great help in re-examining our communications and making them better?

     We seem to be at a point of business where we have various Cxx positions that are created, change, and disappear. I will not say that yet another executive is needed but someone, or some small group of people truly familiar with the company, its products, and the way it works needs to constantly examine how people interact and how can it be improved. Some methods are most easily used face-to-face. Other methods are independent of location. It does not work to force ALL to use the same methods and conduits. People are unique. They learn differently, think differently, and communicate differently.

     There must be alternative conduits encouraged and facilitated. As such are utilized, location becomes less important.

Performance Evaluation: Does location matter?

 

     One aspect of remote/hybrid work that is of concern to a number of companies and/or their managers is "how do I know my teams are doing their work"? This is more of an emotional question than it is a quantitative question. The work is the same, the people on the team are the same, the objectives are the same. Evaluation of work -- while perhaps requiring use of different skills and methods -- remains the same whether in the office, remote on a desert island, or a hybrid of home and office.

     Evaluation is composed of two parts -- commitment and results. A commitment is something that is agreed to by all parties. One party CAN state what the end result, and time frame, should be but, without agreement by all parties, no reasonable evaluation can be made. (Perhaps, within this type of situation, the evaluation can only be made about the person, or team, mandating the commitment.)

     Once upon a time, I was given a project to do, with time frame, for something that had not been done before. After three weeks of research, it was obvious that the work could not be done in the original time frame. I reported this fact to my manager who was terrified to tell his manager (this person had most of the laboratory terrified -- whether they reported to them or not). I got the project done well and on time according to my revised estimates. My evaluation was not good. It was not a reasonable evaluation. A good way to destroy morale and effectiveness within an organization.

      One vital part of the commitment, to which ALL parties agree to, are the set of acceptance criteria. This is used to evaluate results. If the results satisfy the set of acceptance criteria then it was done well. If they do not, then deficits need to be evaluated to determine what the team could have done better or could do better in the future knowing such information. In this part, communication is key. Delays can be worked with -- but only if all parties are aware of the delay. Technical problems can be worked on with adequate communication and allocation of resources. With proper communication, there is no one "to blame" but it is possible to determine how well teams, and individuals, did within the process.

     Note that, within the above description, location of people and teams does not arise. That is because the location is not important. Nor is the process important -- waterfall, agile, lean six sigma, ... Communication is important. Honest evaluation and discussion is important. Location is not important.

     This applies to known current projects. What about future projects? Brainstorming? And, within current projects, how is communication facilitated, to keep the various people and teams working well with one another. That is another topic.

Remote/hybrid work: When change is forced upon industries

 

     The recent pandemic hit the world hard. There were the horrible direct effects of death and lingering illness. A colleague lost his mother and an uncle to the disease and many others grieved. But there were also many indirect effects. Industries that were associated with travel ground to a halt. Most industries found themselves in the position of being required to learn how to work remotely.

     Remote work was not created by the latest pandemic. Remote workers have existed for a long time. It has long been used and discussed but, without impetus to management for change, little had changed over the years.

     Within the "cottage industries" (textiles made an extensive use of such), people in their own homes would be assigned work that they were expected to make of a certain quality within a given time. The cottage industries extended the square footage of the factories by making use of a network of physical spaces.

     Beyond the cottage industries, a certain degree of remote/hybrid work has existed for many other areas that require, or allow, movement from place to place as part of the job. These job categories include customer support, article writing/journalism, sales, and other mobile-requisite tasks.

     Prior to the latest pandemic, however, little shifted from year to year.  The recent pandemic forced most businesses into a remote/hybrid situation. Forced change usually means difficult, and uncomfortable, change.

     What were the results? Some industries had travel an integral part of their business and they were hit hardest. Factories, which required people to be present, had difficulties. Newly created (not the ones that had already been in existence) remote education had very erratic results (my 3 sons' colleges were quite inept at handling such). Restaurants shifted to delivery but suffered from personnel problems. Many industries in which the product wasn't physical shifted to a "cottage industry" model. But the economy survived -- it did not all collapse. Most businesses found that they could survive, and some even thrive, with a remote workforce.

     Survival does not necessarily mean thriving. Could the company do as well, or better, in a remote situation? In some cases, the answer is yes as measured by output and revenue. What about long-term? Can they continue to grow, innovate, and produce in a remote situation? What about a hybrid situation? Is that an improvement or does it end up with some benefits, and some problems, of each?

     There isn't a single answer for companies. Much of the overhead pain of transition has already been taken. It is a good time for serious analysis and discussion; it is unlikely to be beneficial to try to quickly retreat to old models.

     An important part of evaluation and consideration is feedback on how well the process is working. In my next blog, I will talk about factors on judging success.