Thursday 24 December 2009

The Gift Economy

Two basic economic paradigms coexist in the world today. They are logically contradictory, but also complementary. One is visible, the other invisible; one highly valued, the other undervalued. One is connected with men; the other with women. What we need to do is validate the one connected with women, causing a basic shift in the values by which we direct our lives and policies.

I first approached the idea of giving as a basic economic and life principle when I was doing work on language and communication. Later, as a feminist, I realized that in my free homemaking and child-rearing work, I was doing gift labor-as were women worldwide.

The present economic system, which is made to seem natural and too widespread to change, is based upon a simple operation in which individuals participate at many different levels and at many different times. This operation is exchange, which can be described as giving in order to receive. The motivation is self-oriented since what is given returns under a different form to the giver to satisfy her or his need. The satisfaction of the need of the other person is a means to thc satisfaction of one's own need. Exchange requires identification of the things exchanged, as well as their measurement and an assertion of their equivalence to the satisfaction of the exchangers that neither is giving more than she or he is receiving. It therefore requires visibility, attracting attention even though it is done so often that the visibility is commonplace. Money enters the exchange, taking the place of products reflecting their quantitative evaluation.

This seemingly simple human interaction of exchange, since it is done so often, becomes a sort of archetype or magnet for other human interactions, making itself-and whatever looks like it-seem normal, while anything else is crazy. For example, we talk about exchanges of love, conversations, glances, favors, ideas.

There is also a different type of similarity of exchange to linguistic definition. The definition mediates whether or not a concept belongs to a certain category, just as monetarization of activity mediates its belonging to the category of work or not. The very visibility of exchange is self-confirming, while other kinds of interaction are rendered invisible or inferior by contrast or negative description. What is invisible seems to be valueless, while what is visible is identified with exchange, which is concerned with a certain kind of quantitative value. Besides, since there is an equivalence asserted between what we give and what we receive, it seems that whoever has a lot has produced a lot or given a lot, and is, therefore, some - how more than whoever has less. Exchange puts the ego first and allows it to grow and develop in ways that emphasize me-first competitive and hierarchical behavior patterns. This ego is not an intrinsic part of the human being, but is a social product coming from the kinds of human interaction it is involved in.

The alternative paradigm, which is hidden - or at least misidentified - is nurturing and generally other-oriented. It continues to exist because it has a basis in the nature of infants; they are dependent and incapable of giving back to the giver. If their needs are not satisfied unilaterally by the giver, they will suffer and die. Society has allocated the caretaking role to women since we bear the children and have the milk to nourish them.

Since a large percentage of women nurture babies, we are directed toward having an experience outside exchange. This requires orientation toward interest in the other. The rewards and punishments involved have to do with the well-being of the other. Our satisfaction comes from her or his growth or happiness, not just from our own. In the best case, this does not require the impoverishment or depletion of ourselves either. Where there is enough, we can abundantly nurture others. The problem is that scarcity is usually thc case, artificially created in order to maintain control, so that other-orientation becomes difficult and self-depleting. In fact, exchange requires scarcity because, if needs are abundantly satisfied, no one is constrained to give up anything in order to receive what they need.

It is said that the earth produces enough at the present time to feed everyone abundantly. However, this cannot be done on the basis of the exchange paradigm. Nor can the exchange paradigm or the kind of dominant ego it fosters continue in a situation of abundance and free giving. That is why scarcity has been created on a worldwide scale by armaments spending and other wastes of resources: $17 billion would feed everyone on earth for a year and we spend it every week on the military, thus creating the scarcity necessary for the exchange paradigm to survive and continue to validate itself.

If we identify the gift paradigm with women's way, we see that it is already widespread, since women arc the majority of the population. Many men practice it to some extent also. Noncapitalistic economies such as native economies, often have major gift-giving practices and various important kinds of women's leadership.

I believe, for example, that many of the conflicts between women and men that seem like personal differences are really differences in the paradigm we are using as the basis for our behavior. Women criticize men's big egos and men criticize women as being unrealistic, soft touch. bleeding hearts. Each tries to convince the other to follow his or her values. Recently, many women have begun to follow the exchange paradigm, which has the immediate advantage of liberating them from grim economic servitude - and the psychological advantage that monetarization defines their activity as valuable. But the servitude itself is caused by the exchange paradigm.

As people change from one paradigm to the other, there is probably some holdover of the previous paradigm, so that women who take on exchange often remain nurturing while men who take on giving remain more ego-oriented. I see this in the case of religions, in which men legislate other-orientation, often according to exchange, excluding and disqualifying women. Indeed, they make altruism seem so saintly that it is impractical for the many (while ignoring that it is often the norm for women). This is like the madonna-whore syndrome, where the woman is either over- or undervalued, worshiped or despised. Altruism is made to seem above our reach, often with a self-sacrificing side (because of the scarcity - exchange economy), or seen as wasteful, spendthrift; charity is given by patriarchal religions in exchange for the soul.

The gift giving done by the big exchange ego does not work, as we have seen on the scale of aid between nations. There are strings attached by the donor country, which pauperize the recipients. Another aspect of the conflicts of paradigms is that housework or other unmonetarized women's labor is seen as inferior, or nonwork; valuing it is subversive to the exchange paradigm. Perhaps women's labor is paid less than men's to maintain it in a disempowered gift stance. What we need to do is not to pay women's labor more, but to change the values altogether, eventually disqualifying monetarization and exchange.

How can a noncompetitive, nurturing paradigm compete with a competitive one? It is always at a disadvantage because competition is not its motivation or its value. Yet it is difficult to not compete without losing, thereby validating the other's stance. Another major problem is that if satisfying a need is free, one should not require recognition for it. But by not requiring recognition, women have themselves remained unconscious of the paradigm character of their actions and values.

Yet clearly the ego-oriented paradigm is pernicious. It results in the empowerment of the few and the disempowerment, depletion. death, and invisibility of the many Since the ego is a social product, artificial in some ways, it needs to be continually re-created and confirmed. This can also be done by violence against the other, including sexual violence Anyone in the position of the other is ignored, denied, excluded, degraded to confirm the superiority and identity of the dominant egos. I would like to avoid any moral discourse on this point (in fact, I see guilt as internalized exchange, preparing to pay back for the wrong one has done) and simply see the problems as logical and psychological consequences of the paradigms. Vengeance and justice require a balance of accounts. But we need kindness and nurturing, When we find that 85 percent of people in prison have been abused as children, we must realize justice is not the issue. Like charity, justice humanizes the exchange just enough to keep it from changing. We need a world based on giving and for giving, not retribution.

At this point, it seems that it is important to create transitional structures by which giving can be validated. Such strategies as cause-related marketing, where profits are given to social change projects to satisfy needs, use exchange for giving. The social change funding movement also empowers giving especially when it comes from an abundance rather than a scarcity model. But so do all the people in the peace, feminist, healing, and therapy movements who devote their time and energy to satisfying human and social needs. We are doing the right thing, but we don't know why. Sometimes, we even disparage other-orientation while we arc practicing it, because the exchange model is so pervasive and strong. We need to give our money, time, and attention to the change in values, and both new and traditional economic alternatives not dependent on exchange and the market. Women need to realize that our values and energies are important outside the family as well as inside. Social problems are themselves needs that we must satisfy. Our other-orientation must become the norm.

Then the ancient dream that the powerful will lay down their arms and the rich their goods might come true, led by women of the world. We can, for example, move within the "first world" to forgive-the "third world" debt. I call your attention to the word for-give.

Genevieve Vaughan is a feminist activist who is writing a book on the gift paradigm, and trying to live it by creating Thc Foundation for a Compassionate Society, as well as Change of Heart, Inc., a cause-related marketing business. This article is excerpted from her presentation to Thc Other Economic Summit, Houston, 1990; an expanded version appears in thc Spring 1991 issue of "Woman of Power."

Via: gift-economy.com

Tuesday 15 December 2009

10 Questions to Ask Yourself Before Giving Up on Your Dream

1. Why did you want to pursue this goal to begin with—and has anything changed?
You had a good reason for committing to this plan. Maybe you visualized a financially free future once you started this new business, or you realized you’d live longer and healthier if you lost 40 pounds.
Odds are you still want those things as much as you did before; you just stopped believing you could have them because your attempts have yet to yield results. Now you have to ask yourself: if you push through the discomfort will it be worth it in the end?

2. Have you been operating with too much information?
With so much information at our fingertips on the good ole World Wide Web, it’s easy to overwhelm yourself with more knowledge than you can apply. You read e-books and blogs, participate in teleconferences and coaching sessions, and join user forums to talk about getting things done.
One of two things happen as a result: you spend more time planning to act then acting; or you devote minimal energy to multiple plans instead of committing to one solid approach. Instead of drowning in all the data, why not narrow it down and start again from a less overwhelming space?

3. Did you set a smart goal? SMART goals are:
Specific—you know exactly what your world will look like when you achieve this goal.
Measurable—you have a specific plan to mark your progress as you go.
Attainable—you have the attitude and aptitude to make your goal reality.
Realistic—you’re willing and able to do the required work.
Time-bound—you’ve set a concrete timeframe for completion to create a sense of urgency.

If you didn’t set a SMART goal, you may have set yourself up for failure. How can you possibly make something happen if you don’t know exactly what you want, or didn’t really believe you could do it? Are you really willing to walk away when you didn’t give yourself every opportunity to succeed?

4. What’s the worst that will happen if you keep going and don’t reach your goal?
Often when I want to turn around it’s because I’m afraid of failing—afraid other people will be disappointed in me or judge me, or afraid I’ll have wasted my time. In all reality, no one ever judges us like we judge ourselves.; and we always grow and learn through the process of striving, regardless of what we attain.
If you don’t keep going, you’ll never know how far you could have gone, and you’ll miss out on being the person you’d become through the effort itself. If you do keep going, well, it’s like this quote: “Shoot for the moon, for even if you miss you’ll land among the stars.”

5. Are you afraid of succeeding?
One of my biggest problems is that I don’t like responsibility. There are many things I’d like to do, but I resist because I don’t want the power to impact, hurt, or disappoint other people. That doesn’t mean that I don’t have dreams—it’s just that I’m just scared of what achieving them will entail.
If you can relate to this feeling, perhaps you’ll respond well to the mantra I’ve been repeating: great power comes with great responsibility, but it also brings great rewards. If you play it safe, you won’t hurt or disappoint anyone, but you also won’t help or inspire anyone. And equally important, you won’t help or inspire yourself.

6. Are you acting on impulse or emotion instead of thinking things through?
Sometimes our emotions give us hints about what we want and what we should do, but other times they’re just responses to stress, and maybe even indications we’re on the right track. If you act in that moment of intense emotion—be it anger, fear, or frustration—you may regret it once the wave has passed.
So sit back. Take note of what you’re feeling. Feel it fully, without judging it or yourself. Then act when you’ve gotten to the other side. At least then you’ll know you made your decision in a moment of peace and clarity.

7. Would you enjoy giving a loved one the honest explanation for why you gave up?
And I mean honest. Would you like telling your daughter, I stopped trying to quit smoking because cigarettes are more important to me than having more golden years to spend with you? Would it be fun to tell your mother I decided not to go to school because I’d rather spend time with my boyfriend of three months then prepare for a career that will ensure I won’t end up jobless and homeless?
If you lay out it out like this, odds are you’ll realize you had a really good reason for doing this difficult thing, and no matter how challenging the process is, it’s worth plowing ahead.

8. Would your life be better if you gave up on this goal?
This may not sound motivational, but sometimes giving up is actually good thing. Perhaps you set a completely unrealistic goal, and its pursuit is filling you with a constant set of inadequacy and anxiety. Or maybe the goal isn’t in yours or your family’s best interest, and it’s better to get out before you invest so much time it’s near impossible to walk away.
You could easily use this as a justification to delude yourself, so think about it carefully. Is this goal really a good thing, when you weigh all the consequences of its fulfillment?

9. How much have you already put in?
A concept studied in social psychology called “the sunk cost principle” indicates the more we’ve invested in something, the less likely we are to prematurely walk away.
How invested are you? How much money and time have you devoted? How many sacrifices have you made? Are you really willing to chalk it all up as a loss because you’re not feeling confident in your abilities?

10. What would you tell someone else if they were in your shoes?
Would you tell your best friend to throw in the towel because she can’t possibly reach her goal? Or would you practice your finest motivational speech and help her see what you see in her potential? Unless you’re secretly a frenemy who hopes she fails in life odds are you’d push her to be her best—so why not push yourself?
It may sound kind of cheesy, but you need to be your own best friend. You, more than anyone in this world, deserve your belief and motivation.
If you’ve gone through all these questions and still feel resolute about the decision to give up, you have my blessing to abandon your goal. (Bet you feel so relieved!)
If you don’t—if there’s some lingering doubt—keep working toward that dream that fills you with passion. Take a different approach if you need to. Enlist new assistance. Scale back your time commitment to something you can more easily maintain. But whatever you do, don’t give yourself a reason to one day utter the words, “I quit because I was scared.”

Via: tinybuddha

Monday 14 December 2009

How to Come up with Good Ideas for Startups - the Scribd Story and the Trip Method

How to Come up with Good Ideas for Startups - the Scribd Story and the Trip Method

Sunday 13 December 2009

Don’t chase the money, chase the dream



At LeWeb last week in Paris, Tony Hsieh delivered a very inspiring speech about his company - Zappos - and the importance of company culture. We have highlighted below the main points of his message and explained why we think that these ideas are very relevant to Sandbox.

Define your core values

A company that has a good culture makes well in the long term. Companies have to commit to them and avoid making compromises, which also means hire and fire people based on these values. For Tony, the right way to start a company is to define its core-values.

Don’t chase the money, chase the dream

It is crucial to have a vision that goes beyond money and profits. Don’t begin a business with the objective to earn money. Do what you are passionate about and as you will do it well, the money will follow. Ask yourself what would you be so passionate about doing that you would do it for 10 years without earning a dime.

Once you have a strong vision, you will find it much easier to motivate yourself and your employees. You can motivate people with financial incentives or fear, but true motivation goes along with inspiration. If you can inspire your employees making them share your vision, you don’t need to worry about motivating them anymore.

Keep asking why

Ask yourself what you are pursuing in life: buying a home? getting married? Once you have the answers, ask why again. Why do you want to buy a house? Why do you want to get married? Eventually, everyone ends up with the same answer about what they pursue in life: happiness.

What is happiness about?

There are four factors that create happiness:

1. Perceived control
2. Perceived progress
3. Connectiveness
4. Meaning (being part of something bigger than yourself)

Once you have understood them, you can apply them in your business to better motivate your employees: Zappos for example gives small promotions every 6 months instead a big one every 18 months, increasing the feeling of progress among its employees.

The 3 types of happiness

Tony sees 3 types of happiness: pleasure, engagement and meaning. Most people start looking for the first one, hoping to then be able to reach the others, which is the wrong way to go.

- Pleasure is for example about buying new things. It works well, but only as long as you can sustain it.
- Engagement is about feeling passionate about what you are doing. It works better than pleasure, but is not sustainable either.
- Meaning is about finding in life what provides happiness in the long term. Finding meaning creates a long-lasting feeling of happiness.


Via: sandbox

Friday 4 December 2009

Does every startup need a Steve Jobs?

What does Steve Jobs really do for Apple?
I had a recent conversation on Apple’s incredible design culture and what it would take to create that in a startup. In many ways, it seems like an insurmountably difficult challenge to play the role of Steve Jobs, with his god-like sense of product aesthetics and interactions.

And yet, Apple has hundreds of products and experiences – hardware, software, HR materials, commercials, etc. Steve Jobs certainly doesn’t have time to work on the design of every Apple product, and of course has 35,000 employees to manage. So what does Steve Jobs really do, to create the amazing design culture at Apple?

And more importantly, can a startup hope to even start to capture the same kind of culture?

Well, let me give you my best guess

IDEO’s product framework for Desirability, Feasibility, and Viability
First, let’s take a quick detour and talk about IDEO’s perspective on new product development – this is documented as part of their 100+ PDF on human centered design, but also recounted to me by my patient girlfriend who works there.

The idea is that all products ultimately come from an epic struggle between three perspectives: Desirability, Feasibility, and Viability. IDEO focuses on new products from the desirability side, which means they think about how to make sexy products with clear value propositions, and think technology and business goals flow from that. Most of their Fortune 500 clients do not act this way, of course, which is why they have to hire IDEO.

Here’s the diagram included in their HCD toolkit:



The way this was retold to me is that these factors map into functional parts of a business:

Viability = Business focus (marketing, finance)
Feasibility = Engineering focus (technologies, agile process, etc.)
Desirability = Design focus (customers, aesthetics, etc.)
Business-focused product perspective: Viability
For business-oriented products, the focus might be on any of the following:

“hot markets”
making money
funding potential
distribution
metrics
The idea there is that you get to a product via one of these first-order items. A business-oriented entrepreneur might identify a market, then try to come up with a product within the market – for example, “wow, Zynga is making $250M/year, and fish games are big. I should come up with a social gaming product too.”

I would also argue that “corporate” thinking (including MBAs and biz plan competitions) fundamentally revolve around this approach – the most important thing becomes the analytical discussion around the business, rather than the core user experience itself. Financial metrics and market sizes become the dominating point of discussion – I would argue also that most venture capitalists fall into this bucket.

The big “religions” in this perspective are frameworks like Built to Last, Crossing the Chasm, Customer Development, Blue Ocean Strategy, even Efficient Market Hypothesis. You might also count Six Sigma, all the stuff in McKinsey quarterlies, etc.

Engineering-focused product perspective: Feasibility
For technology-oriented products, the focus might be on the following:

programming language and development stack
cool technologies or libraries
engineering processes (agile or otherwise)
For people who use this as a first-order filter, you might end up with a line of thinking like, “BitTorrent is really cool, how do we build a business around it?”

I would also put engineering processes like agile into this, because that can easily become a first-order item in how to build a product as well. Agile won’t work for every team, for every product, in every situation, and yet it’s viewed as an all-purpose hammer – does that really make sense?

The big “religions” in this perspective are frameworks are agile, scrum, open source, etc. I might also count the “ecosystems” like Rails as a unique culture with its own set of beliefs and conventions. Frameworks like “Lean Startups” ultimately combine both Business and Engineering goals, via Customer Development plus Agile.

Design-focused product perspective: Desirability
For design-focused products, the focus might be on:

context, culture, and goals
customer goals and product experience
design aesthetics and interactions
The first-order filter in this case might be “Sick people go to hospitals and have a terrible experience – how do we improve that?” The tools employed at this initial stage might include user research, development of personas and user goals, and rapid prototyping to explore many product concepts.

The big “religions” here are led by Apple and their aesthetics and standards. And of course folks like IDEO and their “design thinking” ideas.

How business and engineering goals encroach on the desirability of a product
Reading through the above, perhaps you have identified yourself as prioritizing one versus the other. And in general, the prioritization of the three different goals drives what kinds of product experiences you can build.

From the perspective of making a sexy, highly desirable product, you’ll find lots of objections from business or engineering:

“spending money on visual design is too expensive”
“polishing a product will make the process too slow”
“this product is boring to implement”
“can you redesign this product so we can build it in 1 week sprints?”
“this target user is great, but we want the product to be more powerful and support more audiences”
“but Zynga doesn’t do this, can you just copy them?”
“why build so many prototypes that get thrown away? That’s costly and slow”
“if you added X to this product, it would put us into strategic market Y”
etc.
How do you handle questions like the above?

All of them are great questions, and of course the right answer means you have to find a balance in the approach. But what is the expense towards the core of your product experience?

Back to Steve Jobs – what does he really do?
Long story short, my hypothesis is that Steve Jobs is one of the rare CEOs who is very focused on product desirability. In battles with the business and technology goals, desirability will almost always win out.

So his role isn’t that of a designer, but rather Chief Design Advocate. This means:

he makes it clear that products should be “insanely great”
he recruits a top design team, and protects them from competing goals
he is willing to spend money, adjust technology processes, all for the goal of highly desirable products
he convinces financial analysts, industry pundits, etc. that product design is very important
To me, the amazing part about this is: Any company can do it.

Maybe not as good as Jobs, but they can decide to make it a priority – but few companies do. With the pressure of quarterly earnings, what competitors are doing, and employee aspirational desires, the focus moves off of killer experiences for customers – that’s no good.

If the above is true, then any of us can be the Steve Jobs of our team. Start by prioritizing design and desirability, and place it on a better footing relative to engineering and business goals. Learn the tools, develop your own religion, and start building great product experiences.

It almost sounds so easy!

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