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Personally, this last week several days were
spent looking at business models of the warriors and
intellectuals. In the case of business, let's call them the
Sellites (Yappers) and the Engineers (Perfectionists).
- The sales organizations find a
product and then create a giant sales network around
that product. Usually these people do not fully
understand their products, just enough to sell the
products to people that cannot understand the entire
product potential. A structure can be constructed for
long term viability. After all, selling today remains
much as hundreds of years ago. A strong belief that
anything can be sold by a salesperson of the proper
ability. The product only has to attract an audience.
- Engineers care more about the
product. This limits their demographic to a much
smaller, although far wealthier, segment. They believe
the product will sell itself. Salespeople can be
very annoying.
- Sellites cannot understand "blue
sky", the ability to project into the future possible
end results. "If it's here, it must be for sale."
Engineers learn never to discuss imaginative thinking in
the presence of Yappers. Not only is everything
misunderstood, the salespeople feel constantly
disappointed they don't have these imagined products to
sell.
- Engineering based business many times
feel the problem of these organizations to produce a
decent profit. Ask any salesperson how foolish are these
hard-working, low profit engineers. I am beginning to
understand the Sellites, meaning profits are becoming
more important to me. Engineering solutions to low
profitability incorporates the selling intensity of the
Sellites, without the hard sell.
- Engineering based companies usually
feel good about selling their products. Sales based
organization the only thrill and excitement comes from
the transaction of the sale and nothing more.
- Sales organizations are not as
necessary this century as the 19th and 20th centuries.
Communications finally is catching up with the
distribution system. Salespeople insist that every sale
is different and specialized. Ask an insurance
salesperson. The fact is, claiming the individuality
maintains the Yappers claim to fame. Eliminating the
personal contact eliminates the sales job and then the
Yappers would have no idea how to make the income which
they have become accustomed. I always remember we are
still using and limited to the seven forms of drama the
Greeks invented.
- Engineering companies are built
around the idea of increasing efficiency, not creating
jobs for people with verbose capabilities. You could say
videos of golf instruction are meant to eliminate bad
teaching of individual teachers. Now, believe me, I like
the golf pros and they will persevere as golf is a human
game and not a typical profit center (but what a
thought). The insurance salesperson will never be the
same and most verbal skills in the industry will decline
in value in the near future. I'm tired of paying for the
corner office in some skyscraper of some health
insurance administrator. I carry health insurance for my
employees benefit. I'm not sure what benefit this
faceless administrator receives benefits my people. Let
him or her go into manufacturing which produces wealth,
not sucks the life out of our society with pure
consumption for little reason, particularly in the
future. I'm sorry Yappers, in the end the engineers must
prevail or eventually the country will go broke.
Actually this happens on a regular basis. In 2007 we are
at the end of the Yappers consuming us into a recession.
So many people have their roots in the Sellite structure
a crisis is necessary to change to a much more efficient
system.
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Transitions to a Sales driven model
take place over a longer period of time than transitions
to Engineering based. Usually the originator of the
business was an engineer, or at least a Yapper who has
structural capability. Since verbal people can boost
profits faster than the Perfection people, as the
originator leaves, so does the emphasis on product.
Slowly and surely the product becomes outdated and the
business fails. Take-over investors make good money by
taking a failing Yapper company and inserting
engineering based management and making the Yappers go
away. Carl Icahn makes billions of dollars identifying
these failing businesses and then "adding value", mostly
in changing the company attitude with new people if
necessary.
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Yappers find they can dominate a Board of
Directors after a while as Yappers chase away the
serious product oriented people. A smaller company can
be easily taken over and updated. Companies like GM,
Ford, and Chrysler are a much bigger challenge. That is
another paper some other time. Sears has been around
long enough to go through a few of these cycles.
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Yappers, in an administrative area, can
be better at selling the board, stockholders and Wall
Street than their products.
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Yapper businesses probably have no idea
of Deming's ideas. Engineering businesses are appalled
at the lack of business structure of the Yappers. Each
side would prefer to determine what's important for
everyone.
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It's very hard for Yapper businesses to
compete with foreign countries that specialize in
engineering businesses, like China or Japan. It's hard
to tell with Europe what's going on. All these countries
have a different idea of quality than societies where
Yappers dominate.
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Yappers have no loyalty except to the
thrill of the sale. engineers are embarrassed by the
products Yapper Businesses produce.
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Let's take a minute to locate a Yapper
company. One I think is a great company and brand. One
of America's best entertainers, Tony Robbins, makes a
perfect example. I have heard Tony in person at least
twice. I even paid for it the first time. This past
weekend I was privileged to attend the "Tony" experience
for the cost of conveying myself to NYC's Javit's Center
for "The Learning Annex's" Wealth convocation. Robbins
was onstage for two hours, impressing me greatly with
his physical preparation for such a performance. Now,
Tony has his loyal followers who provide him with a
great living. Tony really enjoys these performances and
I have to agree with him on this point. His addicted
audience really isn't interested in the quality of his
philosophy, but rather the adrenaline rush Tony's
performance produces. Tony's audience are Yappers; the
more intellectual Engineers are rarely inspired by such
flawed philosophy. And you can quote me on this: Tony
proves that 90% of everything is entertainment. The
other sales organizations, hawking mostly get rich quick
and "meet your goals" promoters weren't half as good as
Tony. Only Tony could be a headliner.
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Tony, fortunately for him, has enough
engineer in him to create a competent organization
underneath to support his brand. So does Donald Trump,
the headliner for the second day of the convocation.
Donald is more an engineer than Tony, but he too
understands the value of entertaining people, but his
organization is about building, more than supporting a
sales oriented business.
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This paper is too long at this point.
Please read some details below and then prove to
yourself through observation the truth of the above
stuff.
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