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Intellectual, Warrior, and Tribal Business Models

How these models affect competitiveness

by Richard Pearlman 2007

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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).

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Yappers, in an administrative area, can be better at selling the board, stockholders and Wall Street than their products.
  11. 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.
  12. 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.
  13. Yappers have no loyalty except to the thrill of the sale. engineers are embarrassed by the products Yapper Businesses produce.
  14. 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.
  15. 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.
  16. 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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