The Toughest Job in America?

Admiral William McRaven, who is retiring as Chancellor of the University of Texas system, asserted that  “Leading a university or health institution is ‘the toughest job in the nation.'”

McRaven was for many years a SEAL leader, with his career culminating in planning and overseeing the operation that killed Osama bin Laden.

I’d suggest that, if leading a university (and for this post, I’ll be focusing on that part of the admiral’s statement rather than the healthcare part) is harder that leading major special-forces operations against determined enemies…then something is very wrong.

Mind you, I’m not saying he’s incorrect.  Indeed, I’d go further: except for certain niche institutions, the job of university president or chancellor may now not just be difficult, but impossible.  Impossible, that is, if you look at success in terms of generating reasonable positive educational results within a reasonably positive culture, not just keeping one’s job.

And this situation is largely the result of the poor performance of several generations of previous university administrators. There has been overselling of what universities are offering..increasingly including graduate studies…as the only key to success in American societies.  There has been encouragement of students to sign up for very large loans, without the kind of disclosure of risks that would be required for any other kind of large investment; coupled with the first point, this has resulted in many people being on campus who shouldn’t be there at all and/or aren’t taking their education very seriously. There has been in many cases a lack of attention to the mission of teaching.  There has been a lack of respect for civil liberties of both students and professors, a tolerance of intimidation tactics by students, professors, and outside parties, and an encouragement of organizations and ‘fields of study’ that are by their very nature hostile to the notion of an academic community.  And there has been little pushback against intrusive regulation from government, as long as funding is at stake.

True, not all university administrators have conducted themselves in the manner described above, but enough have that American higher education as a whole has become increasingly toxic.  And when a culture has become sufficiently toxic, it is very difficult for even the best leader to implement meaningful change.

Worthwhile Reading & Viewing

Bioluminescence at American Digest

Some thoughts on storytelling

Peer influence among adolescents as a driver of transgenderism

Sarah Hoyt: “Have most  institutions, stores and corporations, most large human organizations, gone stone stupid?”

3-D printing in the manufacture of GE’s new turboprop engine

Jim Grant, the well-known observer and analyst of interest rates, asks “what will futurity make of the (so-called) PhD standard that runs our world?” and suggests that, after a major market crash, explanations will include “My generation gave former tenured economics professors discretionary authority to fabricate money and fix interest rates.”

Reminds me:  Danielle DiMartino Booth, who took a job at the Fed following a successful career on Wall Street, remarked that  she did not experience discrimination on account of her sex…but she did face serious prejudice against her on account of not having a PhD.

2017 Reading, continued

A Prophet Without Honor, by Joseph Wurtenbaugh.  An outstanding work of alternative history.

It is now known that when Hitler remilitarized the Rhineland in 1936, his forces were under orders to withdraw if faced by serious opposition by the (then-much-superior) French and British militaries.  But these countries did not take action, being focused on their economic problems and convincing themselves that the German move wasn’t really much of a threat.  But they didn’t know about the Withdrawal Order.  What if they had?

Some of the characters are fictional, others are real people imagined as following different trajectories.  The central figure is a German officer named  Karl von Haydenreich; he has become friends with American officer Dwight Eisenhower and this friendship will prove critical in changing the course of history.

Very well-done, should not be missed.

The Hard Thing About Hard Things, Ben Horowitz.  Advice about running a startup from a venture capitalist…the author is cofounder of the VC firm Andreessen Horowitz.  A lot of worthwhile points, some of which should be obvious, others not so much so.

Understanding what you did wrong if you hired an executive who did not work out:  Horowitz goes through several possible causes of the failure, including this:

You hired for lack of weakness rather than for strengths.  This is especially common when you run a consensus-based hiring process.  The group will often find the candidate’s weaknesses, but they won’t place a high enough value on the areas where you need the executive to be a world-class performer.  As a result, you hire an executive with no sharp weakness, but who is mediocre where you need her to be great.

On excessive focus on quantitative metrics:  “Management purely by numbers is sort of like painting by numbers–it’s strictly for amateurs.”

I especially like Horowitz’s emphasis on the importance of organization design, and the point that all such designs are compromises…indeed:

The first rule of organizational design is that all organizational designs are bad.  With any design, you will optimize communication among some parts of the organization at the expense of other parts.  For example, if you put product management in the engineering organization, you will optimize communication between product management and engineering at the expense of product management and marketing.  As a result, as soon as you roll out the new organization, people will find fault with it, and they will be right…Think of the organizational design as the communications architecture for your company.  If you want people to communicate, the best way to accomplish that is to make them report to the same manager.  By contrast, the further away people are on the organizational chart, the less they will communicate. The organizational design is also the template for how the company communicates with the outside world.

The book was inspired by this thought:  “Every time I read a management or self-help book, I find myself saying, ‘That’s fine, but that wasn’t really the hard thing about the situation.'”  For example:

The hard thing isn’t hiring great people.  That hard thing is when those ‘great people’ develop a sense of entitlement and start demanding unreasonable things…The hard thing isn’t dreaming big. The hard thing is waking up in the middle of the night in a cold sweat when the dream turns into a nightmare.

Fifty Inventions that Shaped the Modern Economy, by Tim Harford.  Includes not just the sort of things that would typically show up in an ‘inventions’ list, but also such things as double-entry bookkeeping, tradable debt, the welfare state, and the department store.

Regarding the latter, Harford credits Harry Gordon Selfridge, who worked for Marshall Field, with creating the concept.  Key to the new stores was the idea that “just looking” was okay, indeed was to be positively encouraged.

Selfridge swept away the previous shopkeepers’ custom of stashing the merchandise in places where sales assistants had to fetch it for you…he instead laid it out in the open-aisle displays we now take for granted, where you can touch a product, pick it up, and inspect it from all angles, without a salesperson hovering by your side…Shopping had long been bound up with social display: the old arcades of the great European cities, displaying their fine cotton fashions–gorgeously lit with candles and mirrors–were places for the upper classes not only to see but to be seen.  Selfridge had no truck with snobbery or exclusivity.  (When he opened his London store), His advertisements pointedly made cleaer that the ‘whole British public’ would be welcome–no cards of admission are required.”

Harford also mentions an Irish immigrant to America named Alexander Turney Stewart.  It was Stewart who introduced “the shocking concept of not hassling customers the moment they walked through the door. He called this novel policy ‘free entrance.”  Stewart also introduced the concept of the clearance sale and established a no-haggle pricing policy for his good.

Discussion of inventions such as the department store provides a useful reminded that so many of the things we take for granted–with ‘things’ including assumptions about ways of doing things as well as tangible objects–haven’t always existed; somebody had to think of them and drive them into reality.

This post to be further continued.

Why Does This Happen?

Skype used to be the premier VOIP app (long before we called such things apps). It always had a crummy user interface but call quality was excellent and users put up with the rough edges. However, since Microsoft bought Skype call quality has declined, seemingly steadily. There are frequent software updates that don’t improve the user experience and sometimes introduce new problems. With its Skype updates on Windows MSFT forces you to opt out a la Java from having your browser configuration hijacked. Calls get dropped more than they used to. Calls that don’t go through are much more frequent. Bandwidth now seems to affect call quality even though it was once possible to use Skype easily over dialup Internet connections.

This morning I tried to make a Skype call on my mobile and found there had been another upgrade, forcing me to waste minutes selecting a new background color and dismissing what’s-new pages and trying to find my contacts list, which is all I ever want to do. I don’t want to invite my contacts to use Skype, I don’t care about inserting GIFs into chats, I don’t care about the Skype community. I care about good, consistent call quality, about having my list of phone numbers propagate automatically to laptop or phone when I update the list, about having a Skype number for incoming calls, and about easy management of occasional conferences and international calls. I used to care about video calling but I gave up since good alternatives appeared. If Skype could restore its past high call quality I could happily put up with the other hassles. If Skype could also improve its UI in a few obvious ways I would be thrilled. It never happens. Why not?

A company with a great product conspicuously fails to improve that product and it starts to lag competing products. Or a big company buys a small company and ruins its main product. MSFT’s management is no doubt part of the problem here but the pattern is familiar. Why is it familiar? You might think the smart people running MSFT would know better. Perhaps they don’t, perhaps this is a more difficult problem than it appears to be. Or perhaps something else is going on.

Discuss.

Our Quasi-Soviet Fiscal Policy

“It’s like deja vu all over again.”

Do Yogi Berra’s words of wisdom apply to the “new” trillion dollar “public infrastructure” program? The last program, still unpaid, focused on “shovel-ready” projects but somehow missed most potholes. Meanwhile, private companies are prepared to spend $100’s of billions on a new fiber optic internet super highway.

Is the current proposed public spending program more likely to pay off for taxpayers than the last one?

Historical Precedent

When the hammer and sickle flag was lowered for the last time in Moscow on December 25, 1991, the international finance agencies created in Bretton Woods in 1944, led by British economist John Maynard Keynes and the Undersecretary of the U.S. Treasury Harry Dexter White, found a new mission.

The International Monetary Fund (IMF), which is a “bank” according to Keynes, provided the financial infrastructure for international trade. The World Bank (WB), or a “fund” according to Keynes, was promoted by, known communist and accused Russian spy, Undersecretary White to help reconstruct European infrastructure, but primarily Russia’s infrastructure, in the wake of WW II destruction.

The IMF lost its raison d’être in 1971 after President Nixon eliminated dollar convertibility into gold, ending the Bretton Woods function. Russia turned down World Bank membership, so the Bank turned to lending for infrastructure projects in the “underdeveloped” nations, which by 1991 faced overwhelming political obstacles.

Assisting in the conversion of formerly centrally planned economies into capitalist market economies became the finance agencies’ new post-Soviet mission. However, few people had much of an idea of how to accomplish this. It had never been done before, and the IMF and WB were particularly ill-equipped as their charter limited them to lending only to governments. They were essentially statist organizations with little experience with (or sympathy for) competitive private markets (which helps explain why they remain chronically underdeveloped).

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