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	<title>Tales of Management</title>
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	<description>Personal experiences and thoughts about high level management</description>
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		<title>Tales of Management</title>
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		<title>MADRID GAME CONFERENCE: Nuevas oportunidades y nuevos modelos de negócio en videojuegos.</title>
		<link>http://talesofmanagement.wordpress.com/2011/06/27/madrid-game-conference-nuevas-oportunidades-y-nuevos-modelos-de-negocio-en-videojuegos/</link>
		<comments>http://talesofmanagement.wordpress.com/2011/06/27/madrid-game-conference-nuevas-oportunidades-y-nuevos-modelos-de-negocio-en-videojuegos/#comments</comments>
		<pubDate>Mon, 27 Jun 2011 14:16:56 +0000</pubDate>
		<dc:creator>danielparente</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

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		<description><![CDATA[MADRID GAME CONFERENCE: Nuevas oportunidades y nuevos modelos de negócio en videojuegos..<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=265&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><a href="http://wp.me/p1de7w-37">MADRID GAME CONFERENCE: Nuevas oportunidades y nuevos modelos de negócio en videojuegos.</a>.</p>
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			<media:title type="html">danielparente</media:title>
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		<title>HOW WILL BE GAMES (AND OTHER PRODUCTS) BE SOLD IN THE FEATURE?</title>
		<link>http://talesofmanagement.wordpress.com/2011/03/30/how-will-be-games-and-other-products-be-sold-in-the-feature/</link>
		<comments>http://talesofmanagement.wordpress.com/2011/03/30/how-will-be-games-and-other-products-be-sold-in-the-feature/#comments</comments>
		<pubDate>Wed, 30 Mar 2011 14:34:13 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[strategy]]></category>
		<category><![CDATA[digital download]]></category>
		<category><![CDATA[future of gaming]]></category>
		<category><![CDATA[game developers]]></category>
		<category><![CDATA[gaming industry]]></category>

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		<description><![CDATA[Over the last years, with the rise of digital downloads and digital commerce, there as been a very intense discussion about whatever the future of videogames is only digital, or still purely retail. Some say, that retail is dead, and &#8230; <a href="http://talesofmanagement.wordpress.com/2011/03/30/how-will-be-games-and-other-products-be-sold-in-the-feature/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=258&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Over the last years, with the rise of digital downloads and digital commerce, there as been a very intense discussion about whatever the future of videogames is only digital, or still purely retail.<br />
Some say, that retail is dead, and that it is a question of time before, all the games will be sold online via portals like Steam, Xboxlive, Playstation network, or many other portals that have been or will be launched in the near future.</p>
<p>Others (I include myself in this group) thinks that the retail is not dead, and what we are currently looking at is only an adaptation of the market to a new distribution channel, that have its advantages and its flaws just like any other channel.</p>
<p>Why am I including  myself in the advocates of the retail?  The answer is not very easy to answer, because mainly it is &#8220;gut feeling&#8221; that I have from my previous experiences, and other because of some of the clews that other products shopping experience are currently displaying in the market ( I am including below a PPT).</p>
<p>Part of the answer, relies on the fact that right from the beginning of telecommunications most of the people were saying that some day everything will be downloaded, which seems to be true when we look at how fast the bandwith has been increasing in the last years. But if you look at how fast the storage has algo been developing you can see, that in fact the ration between storage and capacity to download has been increasing. Back in the 360kb floppies, the analog lines and analog modems were doing between 300Bps to 1200bps, and when they increased the speed to 2400bps, storage jumped to 720Kb and to 1.44Mb.<br />
When modems took the internet speed to 14400bps and to 28800bps, CD appeared in the market and took storage up to 640Mb/800Mb. And finally when connections jumped to the digital age with DSL lines 256Kbps and up (50Mbps), DVDs and Bluerays took the storage to 4,5/9/50Gb.<br />
In this comparation, I am not including harddisks which are currently going over the Terabyte.<br />
Associated with this fact, there is another paragdima associated with the developers, and that basically states, that a software developer will always used all the resources made available to him, ( just like the the gases). Which means that if a game developer has a 50GB media, it will fill it up with content.</p>
<p>Digital download is a singular experience, where a man is seating individually in front of console, and browsing through a catalogue of games, as to download one. No human interaction is done. If there is a problem, there is no one to help you out, unless a Customer Representative Agent is called (which in most of the cases will be an intelligent answering machine). Retail is a social experience, where you go with your friends/family and where you see other people, what they are buying, what they are thinking about a game. If you have a problem you can go to the shop personel and ask questions about the product, and you will be amably taken care.</p>
<p>With digital products, you don´t have the feeling of owning anything because you don´t see around you, what you have bought. It is like digital pictures, where you have now over 5000 pictures, but you never watch any, because they are all stored in a hard disk, while previously you only had a couple of tenths of pictures everywhere through your house.<br />
With bookd and DVD you can see them on your library and it will remind you to read an old book or to watch an old movie. With digital information, you eventually forgot that you have it.</p>
<p>Those are my reasons. There could be more like limited editions of boxes, or exclusive gifts  (t shirts, dolls, accessories, etc), but I think that those are already very clear to anyone.</p>
<p>I am attaching a very good slide presentation found on linkedin, where retail and digital are merged as to create a better shopping experience. Could this be the future, most probably, as most of the game portals are starting to have physical download vouchers instores to be bought be people while going at their local gaming store.</p>
<div style="width:425px;text-align:left;"><a href="http://static.slidesharecdn.com/swf/ssplayer2.swf?doc=substanceretail-110329154017-phpapp01&#038;stripped_title=the-future-of-retailing">http://static.slidesharecdn.com/swf/ssplayer2.swf?doc=substanceretail-110329154017-phpapp01&#038;stripped_title=the-future-of-retailing</a></div>
<p>More at <a title="Game Developers" href="http://www.game-developers.org">www.game-developers.org</a></p>
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			<media:title type="html">comoperroygato</media:title>
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		<title>10 business models for the new decade</title>
		<link>http://talesofmanagement.wordpress.com/2011/01/31/10-business-models-for-the-new-decade/</link>
		<comments>http://talesofmanagement.wordpress.com/2011/01/31/10-business-models-for-the-new-decade/#comments</comments>
		<pubDate>Mon, 31 Jan 2011 17:31:21 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[business models]]></category>
		<category><![CDATA[decade]]></category>
		<category><![CDATA[future]]></category>
		<category><![CDATA[trenspotting]]></category>

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		<description><![CDATA[A very interesting slideset with 10 business models for this new decade. A very interesting excercise of trendspotting and strategic vision done by trendwatching.com- &#160; &#160;<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=253&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>A very interesting slideset with 10 business models for this new decade. A very interesting excercise of trendspotting and strategic vision done by trendwatching.com-</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<iframe src='http://www.slideshare.net/slideshow/embed_code/3496007' width='500' height='410'></iframe>
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			<media:title type="html">comoperroygato</media:title>
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		<title>Leadership tale</title>
		<link>http://talesofmanagement.wordpress.com/2010/01/29/leadership-tale/</link>
		<comments>http://talesofmanagement.wordpress.com/2010/01/29/leadership-tale/#comments</comments>
		<pubDate>Fri, 29 Jan 2010 14:36:07 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Business Thinking]]></category>
		<category><![CDATA[Ethics]]></category>
		<category><![CDATA[Organization and HR]]></category>
		<category><![CDATA[People]]></category>
		<category><![CDATA[Team Management]]></category>
		<category><![CDATA[commitment]]></category>
		<category><![CDATA[Communication]]></category>
		<category><![CDATA[ego]]></category>
		<category><![CDATA[leader]]></category>
		<category><![CDATA[leadership]]></category>
		<category><![CDATA[leadership style]]></category>
		<category><![CDATA[linkedin]]></category>
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		<guid isPermaLink="false">http://talesofmanagement.wordpress.com/?p=244</guid>
		<description><![CDATA[as seen in linkedin;  a very interesting fable,  by Phil Johnson, about other styles of leadership and management, and that I have to link with a similar experience that happened to me a couple of days ago. I am associated with a &#8230; <a href="http://talesofmanagement.wordpress.com/2010/01/29/leadership-tale/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=244&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<blockquote><p> <img src='http://s0.wp.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' />  as seen in linkedin;  a very interesting fable,  by <a title="View Phil's profile" rel="nofollow" href="http://www.linkedin.com/profile?viewProfile=&amp;key=61414&amp;authToken=6sQ3&amp;authType=name&amp;goback=%2Eahp%2Eavq_623879_61414_2_1264774981224">Phil Johnson</a>, about other styles of leadership and management, and that I have to link with a similar experience that happened to me a couple of days ago.</p>
<p>I am associated with a local assocations that has been developed to lobby for the interesses of videogames developers, and it is frequent that we are requested for help with conferences, presentations or our participation in juries or other evalution processes of videogames. I saw the request to be in the jury of videogame contest developement, and I immediatly offered my participation, because I feel that it is my responsability to be near the people starting in the industry and provide them with valuable insights and advices. The person that was dealing with the process asked me, if I was sure that I wanted to be there, because there would be no public/media exposition to the event, and others had said no.  I answered that I was not offering because of the exposition because of my commitment: firstly, to help the association; and secondly, to help new and young blood into the industry.</p>
<p>So I agree with the story that a leader is to serve the others and to support the overall organization into solving its flaws and move as a whole into the future.</p>
<p>Now the story.</p>
<p>A legend tells of a French monastery known throughout Europe for the extraordinary leadership of a man known only as Brother Leo. Several monks began a pilgrimage to visit Brother Leo to learn from him. Almost immediately, they began to bicker about who should do various chores.</p>
<p>On the third day they met another monk going to the monastery, and he joined them. This monk never complained or shirked a duty, and whenever the others would fight over a chore, he would gracefully volunteer and do it himself. By the last day, the others were following his example, and from then on they worked together smoothly.</p>
<p>When they reached the monastery and asked to see Brother Leo, the man who greeted them laughed. &#8220;But our brother is among you!&#8221; And he pointed to the fellow who had joined them.</p>
<p>Today, many people seek leadership positions, not so much for what they can do for others but for what the position can do for them: status, connections, perks, advantages. They do service as an investment, a way to build an impressive resume.</p>
<p>The parable about Brother Leo teaches another model of leadership, where leaders are preoccupied with serving rather than being followed, with giving rather than getting, with doing rather than demanding. Leadership based on example, not command. This is called servant leadership.</p></blockquote>
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		<title>High performant teams</title>
		<link>http://talesofmanagement.wordpress.com/2010/01/21/high-performant-teams/</link>
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		<pubDate>Thu, 21 Jan 2010 22:57:36 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Organization and HR]]></category>
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		<category><![CDATA[team cycle]]></category>
		<category><![CDATA[tuckman]]></category>

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		<description><![CDATA[Team building is very hard and very complex. It can be so hard that a lot of projects or companies will fail precisely because the team failed to create enough cohesion as to work correctly. &#160;Sometimes the leader is wrongly &#8230; <a href="http://talesofmanagement.wordpress.com/2010/01/21/high-performant-teams/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=241&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Team building is very hard and very complex. It can be so hard that a lot of projects or companies will fail precisely because the team failed to create enough cohesion as to work correctly. &nbsp;Sometimes the leader is wrongly pointed as the one that is responsible to build the team, and to assure that the group is performing up to the level. &nbsp;This is totally wrong as team building is iterative process that will not only dependent of the leader, but of the characteristics of each of the team members, the functions that have to be done by the team, &nbsp;and other causes that are not always under the control of the leader. The leader as a role, but in order to work correctly the teams will have to have several specific caracteristics and support behaviors that improve the chances for be high performant.</p>
<p>Another misconception that exists is that once &nbsp;a team is build, the connection will last for ever, or if the team is not connecting immediatly, &nbsp;it will never connect and perform up to the requirements. The sinergies between team members is an iterative process where the team will be moving back and fort between states of connection, ranging from harmony to &nbsp;periods of stressful disputes and divergences that may destroy it immediatly. The process is called the Tuckman&#8217;s team building cycle, and if known it can actually helps a team manager to control the timings associated with the team process.</p>
<p><b>Characteristics of high performant teams</b></p>
<p><a href="http://ezinearticles.com/?The-Seven-Characteristics-of-a-High-Performing-Team&amp;id=413346">http://ezinearticles.com/?The-Seven-Characteristics-of-a-High-Performing-Team&amp;id=413346</a></p>
<p>If you lead a team, you know that the journey to high-performance is ongoing. It’s the rare team that achieves high-performance and just stays there. In my business life, whether I’ve managed a team within an organization, or run my own company, it’s been unusual to keep the same team together for longer than a year. Team members come and go, driven by the needs of the organization and their own career goals. And every time the members of a team changes, the team needs to regroup and refocus.</p>
<p>What’s a team leader to do? For starters, focus on the seven characteristics of a high-performing team (what we call a Total Team at NetSpeed Leadership):&nbsp;</p>
<li>Shared Purpose and Direction</li>
<p></p>
<li>Motivating Goals</li>
<p></p>
<li>Commitment to Individual and Team Roles</li>
<p></p>
<li>Multi-Directional Communication</li>
<p></p>
<li>Authority to Decide or Act</li>
<p></p>
<li>Reliance on Diverse Talents</li>
<p></p>
<li>Mutual Support and Trust</li>
<p><strong>Shared Purpose and Direction</strong></p>
<p>On a high-performing team, everyone on the team is committed to the team’s purpose. They know exactly what that purpose is because the team leader keeps them focused by constantly communicating that purpose in team meetings and regular updates. The team leader helps each individual team member meet his or new own needs while serving the overall purpose of the team.</p>
<p><strong>Motivating Goals</strong></p>
<p>The team leader ensures that everyone on the team has clearly defined goals and targets. In some organizations, the strategic goals and departmental objectives are determined by senior management. In that case, the team leader makes sure that these goals are clearly discussed. Team members should understand how their jobs support the achievement of the defined goals, and, if possible, have the opportunity to develop individual goals and action plans that spell out how they will contribute to the success of the organization.</p>
<p><strong>Commitment to Individual and Team Roles</strong></p>
<p>On a Total Team, team members have clearly defined expectations but they also understand how each of their roles is linked to every other role. Team leaders ensure that team members are cross-trained in other responsibilities so that everyone can back each other up when needed. The team leader makes sure that individual job responsibilities are fulfilled, but, at the same time, works to help the individuals develop a common language, processes and approaches that allow them to function as a team.</p>
<p><strong>Multi-Directional Communication</strong></p>
<p>On the best teams, team members solve problems, communicate with each other, and keep the team leader updated on current challenges or emerging issues. On low-performing teams, communication is one-way (from team leader to team members) or two-way (between the team leader and individuals). Skilled leaders focus on developing multi-directional communication, avoiding the trap of communicating with individuals members of the team.</p>
<p><strong>Authority to Decide or Act</strong></p>
<p>No doubt about it, new teams may have to earn this authority by demonstrating that they understand the team’s purpose, processes and priorities. However, effective team leaders work toward pushing authority for the team’s outcomes to the team members. Team members know how and when to get approval for decisions and, in the best of cases, are charged with making on-the-spot decisions when a customer is facing them. On low-performing teams, team members have to constantly get approval before taking action, significantly reducing their effectiveness and negatively affecting their sense of engagement on the team.</p>
<p><strong>Reliance on Diverse Talents</strong></p>
<p>Savvy team leaders pay attention to helping team members understand their unique strengths, talents, and weaknesses. No individual team member can be good at everything. The best team leaders assist everyone to develop an appreciation for individual style differences, natural gifts, and personal experience. Teams are encouraged to use the language of acceptance and appreciation, rather than criticism and judgment. Team leaders consciously hire team members who bring complementary skill sets, unique experience, and diverse perspectives.</p>
<p><strong>Mutual Support and Trust</strong></p>
<p>The seventh characteristic may be the most important, and frankly, is probably the most elusive. The team leader can’t force a team to be supportive and trusting—it’s a natural result of shared responsibility, shared success, and mutual respect. The high-performing team achieves mutual support and trust because they have a history of working together to achieve grand dreams and results. They have met challenges, overcome obstacles, backed each other up in good times and bad. The Total Team has earned each other’s trust.</p>
<p>Building a high-performing team is not an easy task. However, if you’re a team leader that is up to the challenge, then consciously focus on developing these seven characteristics. Bring them to your next team meeting and ask team members to evaluate them. How do you know whether each of these characteristics is present or absent on your team? What is the team willing to do to develop these seven characteristics? Then ask the individuals on your team to commit to 3 – 5 specific actions they will take in the next 60 days. Revisit these commitments regularly and see what develops. I guarantee a rewarding journey to high-performance.</p>
<p></p>
<p><b>Tuckman&#8217;s team building cycle</b></p>
<p><a href="http://en.wikipedia.org/wiki/Forming,_storming,_norming_and_performing">http://en.wikipedia.org/wiki/Forming,_storming,_norming_and_performing</a></p>
<p>The&nbsp;<strong>Forming – Storming – Norming – Performing</strong> is a model of&nbsp;<a title="Group development" href="http://en.wikipedia.org/wiki/Group_development">group development</a>, first proposed by&nbsp;<a title="Bruce Tuckman" href="http://en.wikipedia.org/wiki/Bruce_Tuckman">Bruce Tuckman</a> in 1965, who maintained that these phases are all necessary and inevitable in order for the&nbsp;<a title="Team" href="http://en.wikipedia.org/wiki/Team">team</a> to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. This model has become the basis for subsequent models.</p>
<h3>Forming</h3>
<p>In the first stages of team building, the&nbsp;<em>forming</em> of the team takes place. The individual&#8217;s behaviour is driven by a desire to be accepted by the others, and avoid controversy or conflict. Serious issues and feelings are avoided, and people focus on being busy with routines, such as team organisation, who does what, when to meet, etc. But individuals are also gathering information and impressions &#8211; about each other, and about the scope of the task and how to approach it. This is a comfortable stage to be in, but the avoidance of conflict and threat means that not much actually gets done.</p>
<p>The team meets and learns about the opportunity and challenges, and then agrees on goals and begins to tackle the tasks. Team members tend to behave quite independently. They may be motivated but are usually relatively uninformed of the issues and objectives of the team. Team members are usually on their best behavior but very focused on themselves. Mature team members begin to model appropriate behavior even at this early phase. Sharing the knowledge of the concept of &#8220;Teams &#8211; Forming, Storming, Norming, Performing&#8221; is extremely helpful to the team.</p>
<p>Supervisors of the team tend to need to be directive during this phase.</p>
<p>The forming stage of any team is important because in this stage the members of the team get to know one another, exchange some personal information, and make new friends. This is also a good opportunity to see how each member of the team works as an individual and how they respond to pressure.</p>
<h3>Storming</h3>
<p>Every group will then enter the&nbsp;<em>storming</em> stage in which different ideas compete for consideration. The team addresses issues such as what problems they are really supposed to solve, how they will function independently and together and what leadership model they will accept. Team members open up to each other and confront each other&#8217;s ideas and perspectives. In some cases&nbsp;<em>storming</em> can be resolved quickly. In others, the team never leaves this stage. The maturity of some team members usually determines whether the team will ever move out of this stage. Some team members will focus on minutiae to evade real issues.</p>
<p>The&nbsp;<em>storming</em> stage is necessary to the growth of the team. It can be contentious, unpleasant and even painful to members of the team who are averse to conflict. Tolerance of each team member and their differences needs to be emphasized. Without tolerance and patience the team will fail. This phase can become destructive to the team and will lower motivation if allowed to get out of control.</p>
<p>Supervisors of the team during this phase may be more accessible but tend to still need to be directive in their guidance of decision-making and professional behavior. The groups will therefore resolve their differences and group members will be able to participate with one another more comfortably and they won&#8217;t feel that they are being judged in any way and will therefore share their own opinions and views&#8230;</p>
<h3>Norming</h3>
<p>At some point, the team may enter the&nbsp;<em>norming</em> stage. Team members adjust their behavior to each other as they develop work habits that make teamwork seem more natural and fluid. Team members often work through this stage by agreeing on rules, values, professional behavior, shared methods, working tools and even taboos. During this phase, team members begin to trust each other. Motivation increases as the team gets more acquainted with the project.</p>
<p>Teams in this phase may lose their creativity if the norming behaviors become too strong and begin to stifle healthy dissent and the team begins to exhibit&nbsp;<a title="Groupthink" href="http://en.wikipedia.org/wiki/Groupthink">groupthink</a>.</p>
<p>Supervisors of the team during this phase tend to be participative more than in the earlier stages. The team members can be expected to take more responsibility for making decisions and for their professional behavior.</p>
<p>As team members get to know each other better, their views of each other begin to change. The team feels a sense of achievement for getting so far, however some members can begin to feel threatened by the amount of responsibility they have been given. They would try to resist the pressure and revert to storming again.</p>
<p></p>
<p><span class="Apple-style-span" style="font-size:15px;font-weight:bold;">Performing</span></p>
<p>Some teams will reach the&nbsp;<em>performing</em> stage. These high-performing teams are able to function as a unit as they find ways to get the job done smoothly and effectively without inappropriate conflict or the need for external supervision. Team members have become interdependent. By this time they are motivated and knowledgeable. The team members are now competent, autonomous and able to handle the decision-making process without supervision. Dissent is expected and allowed as long as it is channeled through means acceptable to the team.</p>
<p>Supervisors of the team during this phase are almost always participative. The team will make most of the necessary decisions. Even the most high-performing teams will revert to earlier stages in certain circumstances. Many long-standing teams will go through these cycles many times as they react to changing circumstances. For example, a change in leadership may cause the team to revert to&nbsp;<em>storming</em> as the new people challenge the existing norms and dynamics of the team.</p>
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		<title>Team roles for efficient team performance. Belbin&#8217;s principle.</title>
		<link>http://talesofmanagement.wordpress.com/2010/01/14/team-roles-for-efficient-team-performance-belbins-principle/</link>
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		<pubDate>Thu, 14 Jan 2010 22:46:26 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Business Thinking]]></category>
		<category><![CDATA[Organization and HR]]></category>
		<category><![CDATA[leader]]></category>
		<category><![CDATA[linkedin]]></category>
		<category><![CDATA[meredith belbin]]></category>
		<category><![CDATA[performance]]></category>
		<category><![CDATA[plant]]></category>
		<category><![CDATA[success]]></category>
		<category><![CDATA[team dynamics]]></category>
		<category><![CDATA[teams]]></category>

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		<description><![CDATA[While browsing linkedin answers, I have come to a question about what what makes a leader able to have better results during the economic downturn than others.  The assumption being made by the question, is that it was related on &#8230; <a href="http://talesofmanagement.wordpress.com/2010/01/14/team-roles-for-efficient-team-performance-belbins-principle/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=239&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>While browsing linkedin answers, I have come to a question about what what makes a leader able to have better results during the economic downturn than others.  The assumption being made by the question, is that it was related on the personal trait of leader being introverted or extroverted.</p>
<p>Personally, I don´t think that sucess in the actual economic downturn has anything to do with being extro or introverted, or only dependent on the leader.<br />
I don´t think that in order to have good results in the current times can be only attributed to a single leader, but rather to a team of talented and balanced people coordinated by a listening leader (extro or introverted) that will take his decisions based on the expert advices of his team.</p>
<p>When I say &#8220;balanced&#8221; I am referring to the fact that teams and groups in order to work correctly must have balanced profiles, that will allow the overall team to take better and more corrects decisions. This has been studied and published defined by Dr Meredith Belbin(http://www.belbin.com/) . You can have an overview at http://www.mindtools.com/pages/article/newLDR_83.htm<br />
A good team must have specific roles in it to allow that balancing, profiles like:</p>
<p><strong>Coordinator (CO)</strong><br />
Coordinators are the ones who take on the traditional team-leader role and have also been referred to as the chairmen. They guide the team to what they perceive are the objectives. They are often excellent listeners and they are naturally able to recognize the value that each team members brings to the table. They are calm and good-natured and delegate tasks very effectively.</p>
<p>Their potential weaknesses are that they may delegate away too much personal responsibility, and may tend to be manipulative.</p>
<p><strong>Team Worker (TW)</strong><br />
Team Workers are the people who provide support and make sure the team is working together. These people fill the role of negotiators within the team and they are flexible, diplomatic, and perceptive. These tend to be popular people who are very capable in their own right but who prioritize team cohesion and helping people getting along.</p>
<p>Their weaknesses may be a tendency to be indecisive, and maintain uncommitted positions during discussions and decision-making.</p>
<p><strong>Resource Investigator (RI)</strong><br />
Resource Investigators are innovative and curious. They explore available options, develop contacts, and negotiate for resources on behalf of the team. They are enthusiastic team members, who identify and work with external stakeholders to help the team accomplish its objective. They are outgoing and are often extroverted, meaning that others are often receptive to them and their ideas.</p>
<p>On the downside, they may lose enthusiasm quickly, and are often overly optimistic.</p>
<p>Thought Oriented Roles:<br />
<strong> Plant (PL)</strong><br />
The Plant is the creative innovator who comes up with new ideas and approaches. They thrive on praise but criticism is especially hard for them to deal with. Plants are often introverted and prefer to work apart from the team. Because their ideas are so novel, they can be impractical at times. They may also be poor communicators and can tend to ignore given parameters and constraints.</p>
<p><strong>Monitor &#8211; Evaluator (ME)</strong><br />
Monitor-Evaluators are best at analyzing and evaluating ideas that other people (often Plants) come up with. These people are shrewd and objective and they carefully weigh the pros and cons of all the options before coming to a decision.</p>
<p>Monitor-Evaluators are critical thinkers and very strategic in their approach. They are often perceived as detached or unemotional. Sometimes they are poor motivators who react to events rather than instigating them</p>
<p><strong>Specialist (SP)</strong><br />
Specialists are people who have specialized knowledge that is needed to get the job done. They pride themselves on their skills and abilities, and they work to maintain their professional status. Their job within the team is to be an expert in the area, and they commit themselves fully to their field of expertise.</p>
<p>The success of a good leader is to actually be able to modify his own role as to be sure to have all the roles view about the decision to be taken.</p>
<p>A team to be performant and be successfull in the decision and actions taken needs to have all the roles assumed during the decision taking process, as to avoid the traps associated with group synergies and influences. It is why the role of the leader is important, as to be able to guide the team forward taking advantage of each of the roles, and assuming himself some of the roles that could be missing in the team, as to allow the overview and thoughts it could have to be applied.</p>
<h4>Links:</h4>
<ul>
<li><a title="New window will open" rel="nofollow" href="http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Ebelbin%2Ecom%2F&amp;urlhash=pLJq" target="_blank">http://www.belbin.com/</a></li>
<li><a title="New window will open" rel="nofollow" href="http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Emindtools%2Ecom%2Fpages%2Farticle%2FnewLDR_83%2Ehtm&amp;urlhash=0Dfs" target="_blank">http://www.mindtools.com/pages/article/newLDR_83.htm</a></li>
</ul>
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		<title>Bricks and Job candidates</title>
		<link>http://talesofmanagement.wordpress.com/2010/01/14/bricks-and-job-candidates/</link>
		<comments>http://talesofmanagement.wordpress.com/2010/01/14/bricks-and-job-candidates/#comments</comments>
		<pubDate>Thu, 14 Jan 2010 15:38:29 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Smiling]]></category>
		<category><![CDATA[bricks]]></category>
		<category><![CDATA[candidates]]></category>
		<category><![CDATA[laugth]]></category>
		<category><![CDATA[linkedin]]></category>

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		<description><![CDATA[Just received the following message in my mailbox, and since I don´t like to actually send this kind of things by email, I have decided to put it on the blog. I have to say, that I have never tried &#8230; <a href="http://talesofmanagement.wordpress.com/2010/01/14/bricks-and-job-candidates/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=236&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Just received the following message in my mailbox, and since I don´t like to actually send this kind of things by email, I have decided to put it on the blog.</p>
<p>I have to say, that I have never tried bricks to test a candidate, but it could really be a good camp field testing.</p>
<p>Put about 100 bricks in some Particular order in a closed Room with an Open window.<br />
Then send 2 or 3 candidates in The room and close the door.</p>
<p>Leave them alone and come back  After 6 hours and then analyze The situation.</p>
<p>If they are counting the Bricks.<br />
Put them in the accounts Department.</p>
<p>If they are recounting them..<br />
Put them in auditing ..</p>
<p>If they have messed up the Whole place with the bricks.<br />
Put them in engineering.</p>
<p>If they are arranging the Bricks in some strange order.<br />
Put them in planning.</p>
<p>If they are throwing the Bricks at each other.<br />
Put them in operations .</p>
<p>If they are sleeping.<br />
Put them in security.</p>
<p>If they have broken the bricks Into pieces.<br />
Put them in information<br />
Technology.</p>
<p>If they are sitting idle.<br />
Put them in human resources.</p>
<p>If they say they have tried Different combinations, yet Not a brick has Been moved. Put them in sales.</p>
<p>If they have already left for The day.<br />
Put them in marketing&#8230;</p>
<p>If they are staring out of the Window.<br />
Put them on strategic Planning..</p>
<p>And then last but not least.<br />
If they are talking to each<br />
Other and not a single brick<br />
Has been<br />
Moved.</p>
<p>Congratulate them and put them In Top management&#8221;</p>
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		<title>Do and Don&#8217;t Dos in LinkedIn</title>
		<link>http://talesofmanagement.wordpress.com/2010/01/14/do-and-dont-dos-in-linkedin/</link>
		<comments>http://talesofmanagement.wordpress.com/2010/01/14/do-and-dont-dos-in-linkedin/#comments</comments>
		<pubDate>Thu, 14 Jan 2010 13:46:39 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Business Thinking]]></category>
		<category><![CDATA[business opportunity]]></category>
		<category><![CDATA[linkedin]]></category>
		<category><![CDATA[social network]]></category>

		<guid isPermaLink="false">http://talesofmanagement.wordpress.com/?p=234</guid>
		<description><![CDATA[I think that by then no one is actually doubting that LinkedIn is a great tool for good or for evil (refer to my articles about linkedin spying and linkedin competitive intelligence), and the ones that are actually using it &#8230; <a href="http://talesofmanagement.wordpress.com/2010/01/14/do-and-dont-dos-in-linkedin/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=234&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>I think that by then no one is actually doubting that LinkedIn is a great tool for good or for evil (refer to my articles about linkedin spying and linkedin competitive intelligence), and the ones that are actually using it wisely can actually see benefits out of it right from the beginning. I would almost have to say that Linkedin is to a professional what Google was for the information searching back in 1997.  LinkedIn decreases the search cost associated with searching information in the infinite information of the internet, even if you are using google, and allows to find direct and precise information about just any topic provided from top experts worldwide in no time. Linkedin allows you to find who are the people in companies you are trying to target,  or allows you to find companies that would be willing in be your partner.</p>
<p>Netherless, a lot of people are underusing the potential of linkedin and are loosing precisous opportunities to generate more business in the long term.</p>
<p>While reviewing Linkedin, I have found a great article about how to use correctly Linkedin to take advantage of its possibilities, and  I cannot resist to link to it.</p>
<p><a href="http://www.kherize5.com/blog/bid/24561/13-LinkedIn-Mistakes-to-Avoid">http://www.kherize5.com/blog/bid/24561/13-LinkedIn-Mistakes-to-Avoid</a></p>
<h3>13 LinkedIn Mistakes to Avoid</h3>
<p>Posted by Suzanne Vara</p>
<p><a href="http://www.kherize5.com/blog/bid/24561/13-LinkedIn-Mistakes-to-Avoid"><img class="aligncenter" title="Linkedin" src="http://www.kherize5.com/Portals/61668/images//13LImistakes.usingsocnetfor%20profes.jpg" alt="Linkedin" width="500" height="375" /></a></p>
<p>LinkedIn, the<a href="http://www.kherize5.com/blog/bid/23812/LinkedIn-Microsoft-A-Socially-Connected-Professional-Network"> socially connected professional network</a>, has made numerous changes over the past few months to become more thank a job resource. The changes have made it a viable tool for people to connect, discuss, get answers to questions as well as connect with people that they just may be working with in the future. The future of <a href="/services-/social-media-marketing/">social media marketing</a> is bright and the tools we use today are building blocks for what is yet to come. Creating profiles that are complete and honest are just the beginning. Many of these have been written time and time again but as I look to connect with new people, I still see the same mistakes being made.</p>
<p>13 LinkedIn Mistakes to Avoid</p>
<blockquote><p>1. Default URL. Increase your personal branding so easily by changing the default to a personal URL. Click Edit Public Profile Settings in the top right and then edit your Public Profile URL to your name.2. My Website/My Company. Keeping the default is asking people to look above to see who your current employer is and then go back and click on it. It is a simple change: On your profile, click websites, then at the drop down, click &#8220;Other&#8221; and then type in the name and descriptive terms</p>
<p>3. Private Profile.  As social media is evolving with Google&#8217;s live search, <a href="http://www.bing.com/twitter">Bing/Twitter</a> as well as <a href="http://www.kherize5.com/blog/bid/24331/Google-Real-Time-Search-Impact-on-Small-Businesses">Google&#8217;s Social Search</a> what was private is not anymore.  Go public so people can find you.</p>
<p>4. Joining Groups.  The maximum amount of groups you can join is 50. While that seems like a lot, how many people are at the max? There are so much information to contained within groups &#8211; news, discussions, slide shares that failing to join groups is missing out on an opportunity to connect.  50 is not always the easiest to keep up with and connect with all members but the information shared in the groups is very valuable.</p>
<p>5. Lack of Participation in Discussions. Social media is about connecting and building relationships &#8211; talking to people. Taking part in discussions gets you noticed as well as keeps the conversation going and the sharing of information, viewpoints and knowledge.</p>
<p>6. Not Asking/Answering Questions. Asking questions and getting feedback from others is not only free, it many times does give you answers that you were seeking.  Answering questions allows you to share what you know and build a reputation within your industry.</p>
<p>7. Linking Every Tweet. Pushing every tweet to your LinkedIn status is noise.  I am a very big fan of Twitter, on twitter. Having people that I am connected with on LinkedIn to see every tweet is not the proper forum. Selected tweets of articles read and worth sharing, absolutely but every tweet, no.</p>
<p>8. Lack of Company Page. As a business owner, a company page is another way to get found. Create a company page so that people know you are there. There had been some hesitations as each employee that adds you as an employer is linked to you and once they leave, they can speak about the company in a manner that is not consistent with company policy shall we say.  Months ago this was a factor but with the social media tools available there is no excuse for not having a company page.</p>
<p>9. Incomplete Profile.  Lack of a photo (or updated photo), complete summary and custom title.  President does not cut it anymore.  People do not search for president, CEO, etc.  Your summary is your chance to let people know what you do and how you can help them.</p>
<p>10. Connecting &amp; Then Selling. It is not a forum for a sales pitch. Similar to auto dm&#8217;s in Twitter. People who connect with you have to agree and they will look to find out what you do. Sending a thanks for connecting with a sales pitch is asking to be ignored.</p>
<p>11. Not Updating Status.  Every tweet is overkill but not updating your status is showing people that you are not active. Inactivity is showing that you are an infrequent visitor. Be active. Let people know what you are involved in, reading, etc.</p>
<p>12. Failing to Comment on Comments. This is similar to comments on our blog. If someone comments, then respond to them. You are asking them to read, they are responding, take time to acknowledge their efforts.</p>
<p>13. Not Giving or Asking or Recommendations. Giving is easier than asking.  I do not like to ask for them as I think that if I give one then that is sort of a nod back to that person to maybe give one back.  Bad strategy &#8230; probably but the importance is to give and then ask.</p></blockquote>
<p>As you go and look at your LinkedIn profile, look for ways to improve.  We are all on limited time and to check this profile, that one and the newest one that comes out is not easy. Staying involved with certain platforms that are making changes is a sign for what is to come.</p>
<p>Agree? What have you done to enhance your profile and stand out?</p>
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			<media:title type="html">Linkedin</media:title>
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		<title>MANAGER BURNOUT</title>
		<link>http://talesofmanagement.wordpress.com/2009/12/23/manager-burnout/</link>
		<comments>http://talesofmanagement.wordpress.com/2009/12/23/manager-burnout/#comments</comments>
		<pubDate>Wed, 23 Dec 2009 17:40:22 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Optmistic Management]]></category>
		<category><![CDATA[Organization and HR]]></category>
		<category><![CDATA[People]]></category>
		<category><![CDATA[burnout]]></category>
		<category><![CDATA[human resources]]></category>
		<category><![CDATA[life and family]]></category>
		<category><![CDATA[motivation]]></category>
		<category><![CDATA[selfmangement]]></category>

		<guid isPermaLink="false">http://talesofmanagement.wordpress.com/?p=231</guid>
		<description><![CDATA[While browsing my status page at linkedin, I have come to message group of someone claiming on the edge of burnout. I have gave my own view about based on my experience, that burnout can happen due to intrisic stress &#8230; <a href="http://talesofmanagement.wordpress.com/2009/12/23/manager-burnout/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=231&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>While browsing my status page at linkedin, I have come to message group of someone claiming on the edge of burnout. I have gave my own view about based on my experience, that burnout can happen due to intrisic stress from thee person, or extrinsic stress created by other factors in the company, like bosses, managers, partners, investor and any other actor in the daily life of the company.</p>
<p>The intrisic burnout is very easy to solve, it is basically a question of taking some days off with the family and forgot about the company.</p>
<p>The extrinsic burnout is actually more complicated than that, because it is being generated by other people/situations that we do not have control upon, and that are sometimes difficult to diagnose and identify a solution to fight it. Most of these kind of burnouts actually ends with people leaving their companies.</p>
<p>In the meanhwile, someone actually sent a very interesting article about how to fight burnout, and that I think deserves to be shared openly with all my readers. It is really a must read.</p>
<p>http://drbalternatives.com/articles/gc3.html</p>
<h1><span style="color:#408080;">Preventing Job Burnout</span></h1>
<p>The atmosphere of the workplace has changed dramatically in recent times. Ever since the exploitative practices of the industrial revolution were removed through legislation, work has been defined as a place where a person could find fulfillment through a job, which was rewarding and paid a fair wage. But this definition has reverted in recent years to one in which the needs of the employee have become less important. Finding personal fulfillment through our work has become more of a challenge. Progressive occupational stress leading to job burnout has become a painful reality for many people.</p>
<p>The incidence of job burnout has become increasingly widespread as</p>
<ul>
<li>corporations merge and the interests of the stockholders come to predominate business policies,</li>
<li>jobs are eliminated or combined because of technological innovations,</li>
<li>more production moves overseas where labor costs are cheaper,</li>
<li>downsizing has become more frequent (where the worker is expected to do more work for less money)</li>
<li>layoffs occur with alarming frequency.</li>
</ul>
<p>Many people are working longer hours and taking on more responsibilities just to stay in place. Where one income used to support a family, now it usually takes two and this has a major impact on the dynamics of raising a family.</p>
<p>As a result of these changes in the workplace, stress has increased dramatically for some workers. Job stress is the result of overload on our senses and our inability to complete tasks. We are presented with more demands, information, stimuli, and intensity than we can take in and process. The end result of prolonged exposure to this stress is job burnout. We progressively shut down under the demands placed on us from the outside world.</p>
<p>When we have difficulty in setting priorities and putting our lives into balance, we are more prone to suffer from burnout. We feel that we cannot keep up with everything we have to do. Not only is our work intense, but we also have demands to participate in family life, keep up with friends, and complete our normal chores of everyday living. We feel a decreased ability to set limits on these various demands. We then begin to feel a vague sense of just not caring so much about work, or maybe anything, anymore. We feel overwhelmed and then we retreat.</p>
<p>Burnout often starts as a feeling of fatigue physical, mental or emotional , which lasts increasingly longer. Weekends, holidays, vacations and customary diversions just don&#8217;t give us a sense of renewal any longer. We start to withdraw from coworkers and supervisors. We aren&#8217;t as attentive to our responsibilities. We may see increased substance abuse (alcohol, drugs, tobacco), changes in our appetite, sleep disruptions, or the onset of physical or emotional health problems. We arrive late and leave early. We may become increasingly angry, hostile and depressed. In severe burnout we may experience a feeling of disconnection and complete loss of interest in our job. Our self-esteem suffers. As our feelings about work become totally negative, chronic absenteeism can become a problem for both the individual and the organization.</p>
<p>Many are only partially aware, however, of the erosive impact that job burnout has on our lives since we tend to ignore chronic and progressive stress. We often feel that we can and must continue to persevere in overload mode, especially considering our cumulative heroic efforts through the present to keep up with our work demands. We drive ourselves to go on and on, as tired and pessimistic as we may be. Others may see the symptoms earlier than we can. Coworkers may notice a change in work habits or the quantity and quality of our work accomplishments. Our primary relationships may suffer. Our friends may complain about our lack of availability.</p>
<p>There are many stressors on the job, which may contribute to burnout. Here are some of the more common sources of job-related stress:</p>
<ul>
<li>work overload</li>
<li>work with high emotional intensity</li>
<li>conflicting job demands</li>
<li>lack of sufficient acknowledgment, support and reward</li>
<li>no clear endpoint to one s efforts</li>
<li>high interpersonal conflict</li>
<li>excessive bureaucracy too much paperwork from higher-ups</li>
<li>value clashes between the individual and the organization</li>
</ul>
<p>Unfortunately, it is often those who show the most promise at the beginning of their careers who later succumb to burnout. They are idealists, perfectionists and workaholics. They are high achievers who have high energy levels and positive attitudes initially. They are dedicated to their work and committed to doing well continuously. Needless to say, more work gets shunted their way. Over time, however, the relentless stress and the inability to cope with the demands of the job lead to burnout.</p>
<h3>Some Common Signs of Job Burnout</h3>
<p>Interpersonal Problems When we feel drained emotionally at work, it becomes more difficult to deal with other people. When expected conflicts occur, we may overreact with an emotional outburst or increased hostility. We may also start to isolate ourselves from other people. We send out messages in our behavior that we are not as present or as available to others as we have been in the past. We might experience a decreased desire to socialize or to pursue our usual activities outside of work.</p>
<p>Emotional Fatigue It is common to feel dissatisfied, angry, frustrated or depressed from time to time. When we are caught in the burnout cycle, however, these negative emotions become our predominant reactions. We express these feelings even when the situation does not merit negative responses. In more serious instances, severe mood problems (such as mood swings or destructive thoughts) may become evident. Maintaining oneself throughout the day becomes tiring we lose our feeling of satisfaction on the job and the ability to face challenges with a positive attitude. We may eventually experience numbness and have difficulty in feeling much of anything.</p>
<p>Low Productivity During the burnout phase it is common for us to experience boredom with the job and a loss of enthusiasm for our projects. We may feel disillusioned or cynical. We may find it difficult to concentrate and harness our energy to produce the quality of work that we have in the past. We begin to question whether our work is meaningful. To compound the problem, we find it difficult to see how things can change and we feel hopeless about finding a solution.</p>
<p>Health Problems As our emotional reserves are depleted, the quality of our relationships deteriorates and our thoughts about work become more negative, we may begin to experience physical problems. We may feel tired and run down. Some common physical symptoms include headaches, back pain, colds, insomnia, rashes or hives, chest pains or palpitations, gastrointestinal problems, and nervous tics. Sleep problems are common, ranging from restless, fitful sleep, to nightmares, to early awakening with our first thoughts on the upcoming day s work demands.</p>
<p>Addictive Resolutions To cope with the chronic stress of the job, we may resort to substance abuse. An increased intake of caffeine on the job is common, along with nicotine addiction and the use of legal drugs such as prescription medication and/or alcohol. Some people resort to illegal drug use. Normal activities such as television or computer use can also become addicting. An increase or decrease in food intake may accompany job burnout. These attempts at self-soothing, however, further compound the problem and fail to address the real issues.</p>
<p>Obsessive Thinking During our non-working hours, work continues to be on our minds, even when we are physically involved with other pursuits. Our usual spiritual, religious or recreational practices fail to sustain us in the face of what we deal with on a daily basis. We have a decreased ability to place our work into a larger and more meaningful context. Our thoughts involve a continuing focus on problems rather than on solutions.</p>
<h3>Burnout Prevention</h3>
<p>Burnout is not an all-or-nothing condition. Rather, think of it as a progressive wear-down ranging from normal feelings of getting a little tired of your job to a state of complete exhaustion. Most workers suffer from some of the symptoms of job stress, if not burnout, from time to time. With careful examination of what is contributing to our stress and attending to our needs for well-being, we can usually halt the wear-down and revive our enthusiasm for work. Frequently we must take an in-depth look at how we work and live in order to turn our stress into an opportunity for personal growth. Here are some tips for preventing and recovering from job burnout:</p>
<ol>
<li>Examine Your Denial. When we are exposed to stress over long periods of time, we tend to deny that there is a problem. The first step in learning to cope with job stress is to listen to the wisdom of your body. Freely admit and come to accept that you are under stress. Identify the sources of your stress and learn how you are reacting to them. Coming to terms with burnout is difficult, if not impossible, unless we stop denying that there is a problem.</li>
<li>Avoid Isolation. When we are burdened with constant job stress, dealing with other people is often the last thing we want to do despite the fact that developing closeness and emotional intimacy with others is one of our most effective ways of buffering ourselves from pressure. Closeness brings new insights and also decreases the negative effects of agitation and depression.</li>
<li>Reduce Intensity in Your Life. Examine those areas of your life, which involve the most concentrated intensity and then work toward alleviating that pressure. This can involve both work and non-work tasks. For example, if your anxiety increases with certain areas of work (meetings, long hours crunching numbers, etc.), see if you can either eliminate those tasks or take a new approach toward them. If you have to make dinner every night after a long day on the job, see if other arrangements can be made at least some of the time. Question whether you really have to watch the news on TV every night or whether spending some quiet time with music or reading might be preferable.</li>
<li>Learn to Pace Yourself. Like everything else in nature, our bodies need up times and down times time to work and time to rest. We need moderation and balance. We can work intensely for a while, but then we need to take a break. Insert some quiet and relaxing interludes into your daily routine.</li>
<li>Minimize Worrying. Worry solves very few problems, but it does increase our general anxiety. If you find yourself obsessing over your concerns, and perhaps losing sleep in the process, write them down, talk them over with a friend, come up with a real solution to the problem, take action and then let it go.</li>
<li>Take Care of Your Physical Needs. When our bodies are run down, we are more susceptible to burnout. Make sure you have a nutritious diet (especially a good breakfast), but avoid abusing yourself with rigid diets. Try to get as much exercise as you realistically can. Avoid addictive substances. And get plenty of sleep.</li>
<li>Nurture Yourself More Than Others. Likely candidates for job burnout are those who are more concerned about caring for the needs of others to the detriment of caring for their own needs (this is why nurses, doctors, teachers and others in the helping professions are prone to job burnout). Some people seek the approval of others by agreeing to take on enormous projects and working long hours. Rather than nurturing others as your first response, try nurturing yourself. (If you are drained all the time, how can you effectively help others?). Learn to say no. Try delegating responsibilities to others rather than taking on an overload yourself.</li>
<li>Take a Close Look at What Your Work Means to You. Try sorting through what is meaningful in your life and separate it from those things, which are temporary and fleeting. Learn what is essential, and what is nonessential, for your happiness. Examine how your work can become a reflection of your essential self, and, if it cannot, consider ways to modify your current work or perhaps go into a new career altogether. Working with a trained therapist on these questions can open the door to a brand new way of living&#8230;with contentment, integrity and true satisfaction.</li>
</ol>
<p>Job Burnout As a Gift</p>
<p>Burning out can be an awful experience. After all, many of us spend most of our waking hours on the job more hours, in fact, than we spend with our families and friends. When this enormous part of our lives becomes so stressful, along with worry, self-esteem issues, anger, depression and withdrawal, a major personal crisis is generated. Our first impulse is to deny that job stress is finally getting the best of us. We persevere and keep doing the same things every day, working even harder as if that might be the answer to finding relief. But the cycle is futile. More work is not going to alleviate the problem of working too hard and it further depletes our emotional reserves.</p>
<p>Think of a burnout crisis as a gift, one that helps inform us that something is out of kilter in our lives and we must look deeper within to find answers to its resolution. Without the burnout crisis, we may never feel prompted to finally answer some critical questions about our lives:</p>
<ul>
<li>What am I trying to accomplish with my work life?</li>
<li>What are my key interests and does my work fit with them?</li>
<li>What are my key skills and does my work use them?</li>
<li>What are my core values about life balance, about family, about money, about the treatment of people? Is my work in synch with these?</li>
<li>Am I overworking? If so, why?</li>
<li>Where is the balance in my life between work and play?</li>
<li>How would I live my life if I no longer had to work?</li>
<li>What does work accomplish for me and what is it preventing me from accomplishing?</li>
<li>Can I shift the focus of my current work or should I look into another type of work?</li>
</ul>
<p>While these are questions, which everyone grappling with occupational stress should reflect on, we often don&#8217;t have the self-discipline and structure to sufficiently explore them. A trained professional can offer a very focused exploration of work life issues which can enable you to get your work life stress sorted out and back to thriving in your chosen work and in your life.</p>
<p>I hope you find this article helpful!</p>
<p>Donna Bellafiore</p>
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		<title>Is the future of business  free ?</title>
		<link>http://talesofmanagement.wordpress.com/2009/12/18/is-the-future-of-business-free/</link>
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		<pubDate>Fri, 18 Dec 2009 12:37:24 +0000</pubDate>
		<dc:creator>comoperroygato</dc:creator>
				<category><![CDATA[Business Thinking]]></category>
		<category><![CDATA[business free]]></category>
		<category><![CDATA[consumer]]></category>
		<category><![CDATA[future of business]]></category>
		<category><![CDATA[tax payer]]></category>
		<category><![CDATA[value chain]]></category>

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		<description><![CDATA[A couple of months ago, I have found an article about the future of business being FREE? I have a couple of objections to it, as everything as to be paid, and if is not from one side of the &#8230; <a href="http://talesofmanagement.wordpress.com/2009/12/18/is-the-future-of-business-free/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=talesofmanagement.wordpress.com&amp;blog=5373537&amp;post=45&amp;subd=talesofmanagement&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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<div id="header">A couple of months ago, I have found an article about the future of business being FREE?</div>
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<div>I have a couple of objections to it, as everything as to be paid, and if is not from one side of the value chain it will be by another element, but in the end someone will have to pay it, and usually in our history, who ends up paying everything is always the same &#8230; YOU (Tax Payer, Consumer).</div>
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<div>here is a copy of the article by Chris Anderson.</div>
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<h2 class="magazineBanner"><a href="/wired/issue/16-03">WIRED MAGAZINE: 16.03</a></h2>
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<h1>Free! Why $0.00 Is the Future of Business</h1>
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By Chris Anderson<br />
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<p>02.25.08</p>
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<p><a href="/techbiz/it/magazine/16-03/ff_free_webmail">Webmail Windfall</p>
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<p><a href="/techbiz/it/magazine/16-03/ff_free_air">How Can Air Travel Be Free?</p>
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<p><a href="/techbiz/it/magazine/16-03/ff_free_prince">How Can a CD Be Free?</p>
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<p><a href="/techbiz/it/magazine/16-03/ff_free_dvr">How Can a DVR Be Free?</p>
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<p><a href="/techbiz/it/magazine/16-03/ff_free_411">How Can Directory Assitance Be Free?</p>
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<p><a href="http://howto.wired.com/wiki/Make_Money_Around_Free_Content">How To Make Money Around Free Content</a></p>
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<p><a>The March 2008 &#8220;issue for free&#8221; offer is now closed.</p>
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<p><strong>At the age of 40, King Gillette was a frustrated inventor,</strong> a bitter anticapitalist, and a salesman of cork-lined bottle caps. It was 1895, and despite ideas, energy, and wealthy parents, he had little to show for his work. He blamed the evils of market competition. Indeed, the previous year he had published a book, <cite>The Human Drift</cite>, which argued that all industry should be taken over by a single corporation owned by the public and that millions of Americans should live in a giant city called Metropolis powered by Niagara Falls. His boss at the bottle cap company, meanwhile, had just one piece of advice: Invent something people use and throw away.</p>
<p>One day, while he was shaving with a straight razor that was so worn it could no longer be sharpened, the idea came to him. What if the blade could be made of a thin metal strip? Rather than spending time maintaining the blades, men could simply discard them when they became dull. A few years of metallurgy experimentation later, the disposable-blade safety razor was born. But it didn&#8217;t take off immediately. In its first year, 1903, Gillette sold a total of 51 razors and 168 blades. Over the next two decades, he tried every marketing gimmick he could think of. He put his own face on the package, making him both legendary and, some people believed, fictional. He sold millions of razors to the Army at a steep discount, hoping the habits soldiers developed at war would carry over to peacetime. He sold razors in bulk to banks so they could give them away with new deposits (&#8220;shave and save&#8221; campaigns). Razors were bundled with everything from Wrigley&#8217;s gum to packets of coffee, tea, spices, and marshmallows. The freebies helped to sell those products, but the tactic helped Gillette even more. By giving away the razors, which were useless by themselves, he was creating demand for disposable blades. A few billion blades later, this business model is now the foundation of entire industries: Give away the cell phone, sell the monthly plan; make the videogame console cheap and sell expensive games; install fancy coffeemakers in offices at no charge so you can sell managers expensive coffee sachets.</p>
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<p>Chris Anderson discusses &#8220;Free.&#8221;</p>
<div class="storyimagecredit">Video produced by Annaliza Savage and edited by Michael Lennon.</div>
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<p>Thanks to Gillette, the idea that you can make money by giving something away is no longer radical. But until recently, practically everything &#8220;free&#8221; was really just the result of what economists would call a cross-subsidy: You&#8217;d get one thing free if you bought another, or you&#8217;d get a product free only if you paid for a service.</p>
<p>Over the past decade, however, a different sort of free has emerged. The new model is based not on cross-subsidies — the shifting of costs from one product to another — but on the fact that the cost of products <em>themselves</em> is falling fast. It&#8217;s as if the price of steel had dropped so close to zero that King Gillette could give away both razor and blade, and make his money on something else entirely. (Shaving cream?)</p>
<p>You know this freaky land of free as the Web. A decade and a half into the great online experiment, the last debates over free versus pay online are ending. In 2007 <cite>The New York Times</cite> went free; this year, so will much of <cite>The Wall Street Journal</cite>. (The remaining fee-based parts, new owner Rupert Murdoch announced, will be &#8220;really special &#8230; and, sorry to tell you, probably more expensive.&#8221; This calls to mind one version of Stewart Brand&#8217;s original aphorism from 1984: &#8220;Information wants to be free. Information also wants to be expensive &#8230; That tension will not go away.&#8221;)</p>
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<p><strong>Scenario 1:</strong> Low-cost digital distribution will make the summer blockbuster free. Theaters will make their money from concessions — and by selling the premium moviegoing experience at a high price.</p>
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<p>Once a marketing gimmick, free has emerged as a full-fledged economy. Offering free music proved successful for Radiohead, Trent Reznor of Nine Inch Nails, and a swarm of other bands on MySpace that grasped the audience-building merits of zero. The fastest-growing parts of the gaming industry are ad-supported casual games online and free-to-try massively multiplayer online games. Virtually everything Google does is free to consumers, from Gmail to Picasa to GOOG-411.</p>
<p>The rise of &#8220;freeconomics&#8221; is being driven by the underlying technologies that power the Web. Just as Moore&#8217;s law dictates that a unit of processing power halves in price every 18 months, the price of bandwidth and storage is dropping even faster. Which is to say, the trend lines that determine the cost of doing business online all point the same way: to zero.</p>
<p>But tell that to the poor CIO who just shelled out six figures to buy another rack of servers. Technology sure doesn&#8217;t feel free when you&#8217;re buying it by the gross. Yet if you look at it from the other side of the fat pipe, the economics change. That expensive bank of hard drives (fixed costs) can serve tens of thousands of users (marginal costs). The Web is all about scale, finding ways to attract the most users for centralized resources, spreading those costs over larger and larger audiences as the technology gets more and more capable. It&#8217;s not about the cost of the equipment in the racks at the data center; it&#8217;s about what that equipment can do. And every year, like some sort of magic clockwork, it does more and more for less and less, bringing the marginal costs of technology in the units that we individuals consume closer to zero.</p>
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<p>As much as we complain about how expensive things are getting, we&#8217;re surrounded by forces that are making them cheaper. Forty years ago, the principal nutritional problem in America was hunger; now it&#8217;s obesity, for which we have the Green Revolution to thank. Forty years ago, charity was dominated by clothing drives for the poor. Now you can get a T-shirt for less than the price of a cup of coffee, thanks to China and global sourcing. So too for toys, gadgets, and commodities of every sort. Even cocaine has pretty much never been cheaper (globalization works in mysterious ways).</p>
<p>Digital technology benefits from these dynamics and from something else even more powerful: the 20th-century shift from Newtonian to quantum machines. We&#8217;re still just beginning to exploit atomic-scale effects in revolutionary new materials — semiconductors (processing power), ferromagnetic compounds (storage), and fiber optics (bandwidth). In the arc of history, all three substances are still new, and we have a lot to learn about them. We are just a few decades into the discovery of a new world.</p>
<p>What does this mean for the notion of free? Well, just take one example. Last year, Yahoo announced that Yahoo Mail, its free webmail service, would provide unlimited storage. Just in case that wasn&#8217;t totally clear, that&#8217;s &#8220;unlimited&#8221; as in &#8220;infinite.&#8221; So the market price of online storage, at least for email, has now fallen to zero (see &#8220;<a href="/techbiz/it/magazine/16-03/ff_free_webmail">Webmail Windfall</a>&#8220;). And the stunning thing is that nobody was surprised; many had assumed infinite free storage was already the case.</p>
<p>For good reason: It&#8217;s now clear that practically everything Web technology touches starts down the path to gratis, at least as far as we consumers are concerned. Storage now joins bandwidth (YouTube: free) and processing power (Google: free) in the race to the bottom. Basic economics tells us that in a competitive market, price falls to the marginal cost. There&#8217;s never been a more competitive market than the Internet, and every day the marginal cost of digital information comes closer to nothing.</p>
<p>One of the old jokes from the late-&#8217;90s bubble was that there are only two numbers on the Internet: infinity and zero. The first, at least as it applied to stock market valuations, proved false. But the second is alive and well. The Web has become the land of the free.</p>
<p>The result is that we now have not one but two trends driving the spread of free business models across the economy. The first is the extension of King Gillette&#8217;s cross-subsidy to more and more industries. Technology is giving companies greater flexibility in how broadly they can define their markets, allowing them more freedom to give away products or services to one set of customers while selling to another set. Ryanair, for instance, has disrupted its industry by defining itself more as a full-service travel agency than a seller of airline seats (see <a href="/techbiz/it/magazine/16-03/ff_free_air">&#8220;How Can Air Travel Be Free?&#8221;</a>).</p>
<p>The second trend is simply that anything that touches digital networks quickly feels the effect of falling costs. There&#8217;s nothing new about technology&#8217;s deflationary force, but what is new is the speed at which industries of all sorts are becoming digital businesses and thus able to exploit those economics. When Google turned advertising into a software application, a classic services business formerly based on human economics (things get more expensive each year) switched to software economics (things get cheaper). So, too, for everything from banking to gambling. The moment a company&#8217;s primary expenses become things based in silicon, free becomes not just an option but the inevitable destination.</p>
<p><strong>WASTE AND WASTE AGAIN</strong></p>
<p>Forty years ago, Caltech professor Carver Mead identified the corollary to Moore&#8217;s law of ever-increasing computing power. Every 18 months, Mead observed, the price of a transistor would halve. And so it did, going from tens of dollars in the 1960s to approximately 0.000001 cent today for each of the transistors in Intel&#8217;s latest quad-core. This, Mead realized, meant that we should start to &#8220;waste&#8221; transistors.</p>
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<p><strong>Scenario 2:</strong> Ads on the subway? That&#8217;s so 20th century. By sponsoring the whole line and making trips free, the local merchants association brings grateful commuters to neighborhood shops.</p>
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<p><em>Waste</em> is a dirty word, and that was especially true in the IT world of the 1970s. An entire generation of computer professionals had been taught that their job was to dole out expensive computer resources sparingly. In the glass-walled facilities of the mainframe era, these systems operators exercised their power by choosing whose programs should be allowed to run on the costly computing machines. Their role was to conserve transistors, and they not only decided what was worthy but also encouraged programmers to make the most economical use of their computer time. As a result, early developers devoted as much code as possible to running their core algorithms efficiently and gave little thought to user interface. This was the era of the command line, and the only conceivable reason someone might have wanted to use a computer at home was to organize recipe files. In fact, the world&#8217;s first personal computer, a stylish kitchen appliance offered by Honeywell in 1969, came with integrated counter space.</p>
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<p>And here was Mead, telling programmers to embrace waste. They scratched their heads — how do you waste computer power? It took Alan Kay, an engineer working at Xerox&#8217;s Palo Alto Research Center, to show them. Rather than conserve transistors for core processing functions, he developed a computer concept — the Dynabook — that would frivolously deploy silicon to do silly things: draw icons, windows, pointers, and even animations on the screen. The purpose of this profligate eye candy? Ease of use for regular folks, including children. Kay&#8217;s work on the graphical user interface became the inspiration for the Xerox Alto, and then the Apple Macintosh, which changed the world by opening computing to the rest of us. (We, in turn, found no shortage of things to do with it; tellingly, organizing recipes was not high on the list.)</p>
<p>Of course, computers were not free then, and they are not free today. But what Mead and Kay understood was that the transistors in them — the atomic units of computation — would become so numerous that on an individual basis, they&#8217;d be close enough to costless that they might as well be free. That meant software writers, liberated from worrying about scarce computational resources like memory and CPU cycles, could become more and more ambitious, focusing on higher-order functions such as user interfaces and new markets such as entertainment. And that meant software of broader appeal, which brought in more users, who in turn found even more uses for computers. Thanks to that wasteful throwing of transistors against the wall, the world was changed.</p>
<p>What&#8217;s interesting is that transistors (or storage, or bandwidth) don&#8217;t have to be completely free to invoke this effect. At a certain point, they&#8217;re cheap enough to be safely disregarded. The Greek philosopher Zeno wrestled with this concept in a slightly different context. In Zeno&#8217;s dichotomy paradox, you run toward a wall. As you run, you halve the distance to the wall, then halve it again, and so on. But if you continue to subdivide space forever, how can you ever actually reach the wall? (The answer is that you can&#8217;t: Once you&#8217;re within a few nanometers, atomic repulsion forces become too strong for you to get any closer.)</p>
<p>In economics, the parallel is this: If the unitary cost of technology (&#8220;per megabyte&#8221; or &#8220;per megabit per second&#8221; or &#8220;per thousand floating-point operations per second&#8221;) is halving every 18 months, when does it come close enough to zero to say that you&#8217;ve arrived and can safely round down to nothing? The answer: almost always sooner than you think.</p>
<p>What Mead understood is that a psychological switch should flip as things head toward zero. Even though they may never become entirely free, as the price drops there is great advantage to be had in treating them as if they <em>were</em> free. Not too cheap to <em>meter</em>, as Atomic Energy Commission chief Lewis Strauss said in a different context, but too cheap to <em>matter</em>. Indeed, the history of technological innovation has been marked by people spotting such price and performance trends and getting ahead of them.</p>
<p>From the consumer&#8217;s perspective, though, there is a huge difference between cheap and free. Give a product away and it can go viral. Charge a single cent for it and you&#8217;re in an entirely different business, one of clawing and scratching for every customer. The psychology of &#8220;free&#8221; is powerful indeed, as any marketer will tell you.</p>
<p>This difference between cheap and free is what venture capitalist Josh Kopelman calls the &#8220;penny gap.&#8221; People think demand is elastic and that volume falls in a straight line as price rises, but the truth is that zero is one market and any other price is another. In many cases, that&#8217;s the difference between a great market and none at all.</p>
<p>The huge psychological gap between &#8220;almost zero&#8221; and &#8220;zero&#8221; is why micropayments failed. It&#8217;s why Google doesn&#8217;t show up on your credit card. It&#8217;s why modern Web companies don&#8217;t charge their users anything. And it&#8217;s why Yahoo gives away disk drive space. The question of infinite storage was not <em>if</em> but <em>when</em>. The winners made their stuff free first.</p>
<p>Traditionalists wring their hands about the &#8220;vaporization of value&#8221; and &#8220;demonetization&#8221; of entire industries. The success of craigslist&#8217;s free listings, for instance, has hurt the newspaper classified ad business. But that lost newspaper revenue is certainly not ending up in the craigslist coffers. In 2006, the site earned an estimated $40 million from the few things it charges for. That&#8217;s about 12 percent of the $326 million by which classified ad revenue declined that year.</p>
<p>But free is not quite as simple — or as stupid — as it sounds. Just because products are free doesn&#8217;t mean that someone, somewhere, isn&#8217;t making huge gobs of money. Google is the prime example of this. The monetary benefits of craigslist are enormous as well, but they&#8217;re distributed among its tens of thousands of users rather than funneled straight to Craig Newmark Inc. To follow the money, you have to shift from a basic view of a market as a matching of two parties — buyers and sellers — to a broader sense of an ecosystem with many parties, only some of which exchange cash.</p>
<p>The most common of the economies built around free is the three-party system. Here a third party pays to participate in a market created by a free exchange between the first two parties. Sound complicated? You&#8217;re probably experiencing it right now. It&#8217;s the basis of virtually all media.</p>
<p>In the traditional media model, a publisher provides a product free (or nearly free) to consumers, and advertisers pay to ride along. Radio is &#8220;free to air,&#8221; and so is much of television. Likewise, newspaper and magazine publishers don&#8217;t charge readers anything close to the actual cost of creating, printing, and distributing their products. They&#8217;re not selling papers and magazines to readers, they&#8217;re selling readers to advertisers. It&#8217;s a three-way market.</p>
<p>In a sense, what the Web represents is the extension of the media business model to industries of all sorts. This is not simply the notion that advertising will pay for everything. There are dozens of ways that media companies make money around free content, from selling information about consumers to brand licensing, &#8220;value-added&#8221; subscriptions, and direct ecommerce (see <a href="http://howto.wired.com/wiki/Make_Money_Around_Free_Content">How-To Wiki</a> for a complete list). Now an entire ecosystem of Web companies is growing up around the same set of models.</p>
<p><strong>A TAXONOMY OF FREE</strong></p>
<p>Between new ways companies have found to subsidize products and the falling cost of doing business in a digital age, the opportunities to adopt a free business model of some sort have never been greater. But which one? And how many are there? Probably hundreds, but the priceless economy can be broken down into six broad categories:</p>
<p><strong>· &#8220;Freemium&#8221;</strong></p>
<p><em>What&#8217;s free: Web software and services, some content. Free to whom: users of the basic version.</em></p>
<p>This term, coined by venture capitalist Fred Wilson, is the basis of the subscription model of media and is one of the most common Web business models. It can take a range of forms: varying tiers of content, from free to expensive, or a premium &#8220;pro&#8221; version of some site or software with more features than the free version (think Flickr and the $25-a-year Flickr Pro).</p>
<p>Again, this sounds familiar. Isn&#8217;t it just the free sample model found everywhere from perfume counters to street corners? Yes, but with a pretty significant twist. The traditional free sample is the promotional candy bar handout or the diapers mailed to a new mother. Since these samples have real costs, the manufacturer gives away only a tiny quantity — hoping to hook consumers and stimulate demand for many more.</p>
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<p>But for digital products, this ratio of free to paid is reversed. A typical online site follows the 1 Percent Rule — 1 percent of users support all the rest. In the freemium model, that means for every user who pays for the premium version of the site, 99 others get the basic free version. The reason this works is that the cost of serving the 99 percent is close enough to zero to call it nothing.</p>
<p><strong>· Advertising</strong></p>
<p><em>What&#8217;s free: content, services, software, and more. Free to whom: everyone.</em></p>
<p>Broadcast commercials and print display ads have given way to a blizzard of new Web-based ad formats: Yahoo&#8217;s pay-per-pageview banners, Google&#8217;s pay-per-click text ads, Amazon&#8217;s pay-per-transaction &#8220;affiliate ads,&#8221; and site sponsorships were just the start. Then came the next wave: paid inclusion in search results, paid listing in information services, and lead generation, where a third party pays for the names of people interested in a certain subject. Now companies are trying everything from product placement (PayPerPost) to pay-per-connection on social networks like Facebook. All of these approaches are based on the principle that free offerings build audiences with distinct interests and expressed needs that advertisers will pay to reach.</p>
<p><strong>· Cross-subsidies</strong></p>
<p><em>What&#8217;s free: any product that entices you to pay for something else. Free to whom: everyone willing to pay eventually, one way or another.</em></p>
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<p><strong>Scenario 3:</strong> It&#8217;s a free second-gen Wiii! But only if you buy the deluxe version of Rock Band.</p>
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<p>When Wal-Mart charges $15 for a new hit DVD, it&#8217;s a loss leader. The company is offering the DVD below cost to lure you into the store, where it hopes to sell you a washing machine at a profit. Expensive wine subsidizes food in a restaurant, and the original &#8220;free lunch&#8221; was a gratis meal for anyone who ordered at least one beer in San Francisco saloons in the late 1800s. In any package of products and services, from banking to mobile calling plans, the price of each individual component is often determined by psychology, not cost. Your cell phone company may not make money on your monthly minutes — it keeps that fee low because it knows that&#8217;s the first thing you look at when picking a carrier — but your monthly voicemail fee is pure profit.</p>
<p>On a busy corner in São Paulo, Brazil, street vendors pitch the latest &#8220;tecnobrega&#8221; CDs, including one by a hot band called Banda Calypso. Like CDs from most street vendors, these did not come from a record label. But neither are they illicit. They came directly from the band. Calypso distributes masters of its CDs and CD liner art to street vendor networks in towns it plans to tour, with full agreement that the vendors will copy the CDs, sell them, and keep all the money. That&#8217;s OK, because selling discs isn&#8217;t Calypso&#8217;s main source of income. The band is really in the performance business — and business is good. Traveling from town to town this way, preceded by a wave of supercheap CDs, Calypso has filled its shows and paid for a private jet.</p>
<p>The vendors generate literal street cred in each town Calypso visits, and its omnipresence in the urban soundscape means that it gets huge crowds to its rave/dj/concert events. Free music is just publicity for a far more lucrative tour business. Nobody thinks of this as piracy.</p>
<p><strong>· Zero marginal cost</strong></p>
<p><em>What&#8217;s free: things that can be distributed without an appreciable cost to anyone. Free to whom: everyone.</em></p>
<p>This describes nothing so well as online music. Between digital reproduction and peer-to-peer distribution, the real cost of distributing music has truly hit bottom. This is a case where the product has become free because of sheer economic gravity, with or without a business model. That force is so powerful that laws, guilt trips, DRM, and every other barrier to piracy the labels can think of have failed. Some artists give away their music online as a way of marketing concerts, merchandise, licensing, and other paid fare. But others have simply accepted that, for them, music is not a moneymaking business. It&#8217;s something they do for other reasons, from fun to creative expression. Which, of course, has always been true for most musicians anyway.</p>
<p><strong>· Labor exchange</strong></p>
<p><em>What&#8217;s free: Web sites and services. Free to whom: all users, since the act of using these sites and services actually creates something of value.</em></p>
<p>You can get free porn if you solve a few captchas, those scrambled text boxes used to block bots. What you&#8217;re actually doing is giving answers to a bot used by spammers to gain access to other sites — which is worth more to them than the bandwidth you&#8217;ll consume browsing images. Likewise for rating stories on Digg, voting on Yahoo Answers, or using Google&#8217;s 411 service (see <a href="/techbiz/it/magazine/16-03/ff_free_411">&#8220;How Can Directory Assistance Be Free?&#8221;</a>). In each case, the act of using the service creates something of value, either improving the service itself or creating information that can be useful somewhere else.</p>
<p><strong>· Gift economy</strong></p>
<p><em>What&#8217;s free: the whole enchilada, be it open source software or user-generated content. Free to whom: everyone.</em></p>
<p>From Freecycle (free secondhand goods for anyone who will take them away) to Wikipedia, we are discovering that money isn&#8217;t the only motivator. Altruism has always existed, but the Web gives it a platform where the actions of individuals can have global impact. In a sense, zero-cost distribution has turned sharing into an industry. In the monetary economy it all looks free — indeed, in the monetary economy it looks like unfair competition — but that says more about our shortsighted ways of measuring value than it does about the worth of what&#8217;s created.</p>
<p><strong>THE ECONOMICS OF ABUNDANCE</strong></p>
<p>Enabled by the miracle of abundance, digital economics has turned traditional economics upside down. Read your college textbook and it&#8217;s likely to define economics as &#8220;the social science of choice under scarcity.&#8221; The entire field is built on studying trade-offs and how they&#8217;re made. Milton Friedman himself reminded us time and time again that &#8220;there&#8217;s no such thing as a free lunch.</p>
<p>&#8220;But Friedman was wrong in two ways. First, a free lunch doesn&#8217;t necessarily mean the food is being given away or that you&#8217;ll pay for it later — it could just mean someone else is picking up the tab. Second, in the digital realm, as we&#8217;ve seen, the main feedstocks of the information economy — storage, processing power, and bandwidth — are getting cheaper by the day. Two of the main scarcity functions of traditional economics — the marginal costs of manufacturing and distribution — are rushing headlong to zip. It&#8217;s as if the restaurant suddenly didn&#8217;t have to pay any food or labor costs for that lunch.</p>
<p>Surely economics has something to say about that?</p>
<p>It does. The word is <em>externalities</em>, a concept that holds that money is not the only scarcity in the world. Chief among the others are your time and respect, two factors that we&#8217;ve always known about but have only recently been able to measure properly. The &#8220;attention economy&#8221; and &#8220;reputation economy&#8221; are too fuzzy to merit an academic department, but there&#8217;s something real at the heart of both. Thanks to Google, we now have a handy way to convert from reputation (PageRank) to attention (traffic) to money (ads). Anything you can consistently convert to cash is a form of currency itself, and Google plays the role of central banker for these new economies.</p>
<p>There is, presumably, a limited supply of reputation and attention in the world at any point in time. These are the new scarcities — and the world of free exists mostly to acquire these valuable assets for the sake of a business model to be identified later. Free shifts the economy from a focus on only that which can be quantified in dollars and cents to a more realistic accounting of <em>all</em> the things we truly value today.</p>
<p><strong>FREE CHANGES EVERYTHING</strong></p>
<p>Between digital economics and the wholesale embrace of King&#8217;s Gillette&#8217;s experiment in price shifting, we are entering an era when free will be seen as the norm, not an anomaly. How big a deal is that? Well, consider this analogy: In 1954, at the dawn of nuclear power, Lewis Strauss, head of the Atomic Energy Commission, promised that we were entering an age when electricity would be &#8220;too cheap to meter.&#8221; Needless to say, that didn&#8217;t happen, mostly because the risks of nuclear energy hugely increased its costs. But what if he&#8217;d been right? What if electricity had in fact become virtually free?The answer is that everything electricity touched — which is to say just about everything — would have been transformed. Rather than balance electricity against other energy sources, we&#8217;d use electricity for as many things as we could — we&#8217;d waste it, in fact, because it would be too cheap to worry about.</p>
<p>All buildings would be electrically heated, never mind the thermal conversion rate. We&#8217;d all be driving electric cars (free electricity would be incentive enough to develop the efficient battery technology to store it). Massive desalination plants would turn seawater into all the freshwater anyone could want, irrigating vast inland swaths and turning deserts into fertile acres, many of them making biofuels as a cheaper store of energy than batteries. Relative to free electrons, fossil fuels would be seen as ludicrously expensive and dirty, and so carbon emissions would plummet. The phrase &#8220;global warming&#8221; would have never entered the language.</p>
<p>Today it&#8217;s digital technologies, not electricity, that have become too cheap to meter. It took decades to shake off the assumption that computing was supposed to be rationed for the few, and we&#8217;re only now starting to liberate bandwidth and storage from the same poverty of imagination. But a generation raised on the free Web is coming of age, and they will find entirely new ways to embrace waste, transforming the world in the process. Because free is what you want — and free, increasingly, is what you&#8217;re going to get.</p>
<p><em>Chris Anderson</em> (<a href="mailto:canderson@wired.com">canderson@wired.com</a>) <em>is the editor in chief of</em> Wired <em>and author of</em> The Long Tail<em>. His next book,</em> FREE<em>, will be published in 2009 by Hyperion.</em></p>
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