Thinking About the Consequences of our Education System, Bullying, our Health System, Coach Azul, Cameron Harold and FREE Publicity

I listen to a lot of podcasts. I was listening to them while commuting to and from work. Then last year I suffered a back injury and I have been waiting at home, consuming pain medications and exercising for what seems like forever, for ACC to approve spinal fusion and a discectomy so that I can get back to work.

Around a week ago they notified me that they are not going to pay for the surgery on the basis that I have degeneration in my discs that was not caused by the injury. It ‘rendered them symptomatic’ and I am now waiting for an appointment with the Waitemata District Health Board, whilst working on a review claim with ACC, New Zealand’s Government Accident and Injury insurer, who I feel could have had me back at work 6 months ago. They are still covering me for the back strain, but my specialist has said that they have tried everything bar surgery. “We’ve painted ourselves into a corner” he said.

I’m told that the North Shore Hospital spine surgeon is fantastic, but they also told me they have to legally see me within 4 months. In other words, just because it says “urgent’ on your case file, doesn’t mean you will even get to speak to someone anytime soon.

So I’ve had a lot more time to listen to podcasts while exercising, strengthening my core, whilst awaiting the needed surgery I still need, so I can return to work. I suspect there are thousands of people like me, numbers that get recycled in meetings focused on saving money. Ironically, when I work I am saving citizens much more money, but I digress.

One of the podcasts I enjoy is from Azul Terronez called Born to Write. If you follow me, you know I am passionate about writing and storytelling as a means of sharing a message on my various blogs and books.

The latest podcast from Coach Azul really resonated with me. The guest was Cameron Harold, a writer, entrepreneur, business mentor and founder of the COO Alliance.

He talked about some struggles he had growing up when he was told that he was  not academically in the top 40% of students and how he battled in his mind with that through school and university.

His story to becoming an entrepreneur resonated with me but from a different perspective, particularly the education part. It fascinates me how education systems seem to fail at both ends of the spectrum, contrasting with today’s apparent dumbing down of some generations whist the skill levels that create our greatest achievements are held back, limited to those who often achieve despite the system, rather than by its design.

I was one of those kids who didn’t fit in school, particularly once I got to high school. This was not because I wasn’t in the top 40%, but because I was in the top 2%. I’m starting to write about it, but not at this stage for publication.

I used my smarts to survive in a school (being a good guitarist helped) where the height of success was failing exams and getting into the school rugby 1st 15. In my school an A+ meant getting bullied for showing up the other kids. We had streaming, but being in the ‘Ac 1’ class also put a target on the back of your head.

Even teachers who tried to encourage kids to do well were on occasion beaten up and thrown down stairwells because the kids they tried to help were embarrassed in front of their peers. I liked sport (I played in previous schools, hockey and club soccer when living in Holland) but the thought of having to stay at school a minute longer than I had to (for training) was anathema.

The podcast I listened to this morning was about getting FREE publicity. I learned similar lessons to Cameron Harold early in my career, when I was racing landyachts as a hobby sport, and I was looking for sponsorship to send a team from New Zealand to the USA.

Me on my Class 5 Winger on 90 Mile Beach

I needed publicity to attract sponsors for a sport where one minute you see the yachts racing over the sand on a long beach or on the tarmac of an air base; and for the next half an hour or so, you sit there waiting to see them briefly again as they would fly around a mark, crashing into each other on 2 wheels. It was a great spectator sport for about 4 minutes of each race that could take up to an hour and a half.

I did two things. I got a well worn small book from the library. I don’t recall what it was called but it may as well have been called “Get the coverage you want by giving the media what they want”.

One of the things it said to do was to ask them what they wanted. That seemed to simple but I did it. I rang radio sports journalists, I rang TV, I rang magazine editors and I rang newspaper sports writers. I introduced myself and gave a quick pitch of why I was ringing, explaining the challenges of a fast exhilarating sport, with yachts on wheels doing over 100 kph on the beach that no one had heard of.

Next thing I found myself in the newsroom of the New Zealand national daily, speaking with the Sports Editor. End result, they got some great stories, we got global TV coverage, we got international magazines and radio stories, we got sponsors and our team (unfortunately I had to pull out at the last minute) went to the Nevada Desert and won the America’s Cup of Land Yachting! And I learned how to get more than my fair share of media coverage for my employers and my modest entrepreneurial ventures.

Ironically listening to Cameron’s story, and despite being very gifted intellectually, I didn’t do any university study until much later in life, because I spent many of those teenage years rebelling against a system that had no place for bright people. I’ve had a pretty exciting life so far and I feel I have made a strong contribution in my endeavours, but I also wonder if I didn’t live in the land of Tall Poppy Syndrome, how much more I could have achieved if the education system had acted on what they discovered about me and nurtured it.

Which sort of brings me back full circle to my ailing back. I have now sat down too long writing this and need to do some stretches and exercise as I wait for my number to be called by the Waitemata District Health Board for my first specialist meeting, so I can have my surgery and get back to my job. When you’re a number in the system, a few pages in a manilla folder, you are equally invisible if you want to work and be productive as someone who will quite happily live on a benefit.

Does any of this resonate with you?

 

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You Have Cancer

At the closing ceremony of Relay For Life on Sunday at the Millennium Institute in Mairangi Bay, Auckland, New Zealand, we were told these are the worst 3 words you can hear in your life. As part of Team Hope Fighters, I was one of a group of awesome people who raised funds through a variety of activities culminating in an 18 hour walking relay. Our group walked the equivalent of Auckland to Blenheim and the full compliment walked the equivalent of Auckland to New York via Los Angeles, collecting over $120,000 for cancer research along the way.

Team Hope Fighters

I lost my first friend, my best childhood mate to cancer at the age of 9. Since then, like most people I have lost lots more. My grandmother, my father-in-law (who was a past President of the Lost Chord Club) and many more. I have relatives who are survivors and one who has only recently found out they have cancer and who didn’t want to tell me.

Relay For Life is a poignant event, which starts of with a Survivors Lap, lead by people who are in remission or still battling this horrendous condition. Many of these people marched for much of the 18 hours of this event which was very inspiring.

We walked through the night and I was pleased to survive sans blisters and managed just over a marathon

Walking through the night

distance, which was a real achievement for me considering I hadn’t trained. One monster in our team was in training for a super marathon in 3 weeks time. I’m not sure exactly how far he ran, but it was in excess of 140km which was amazing.

Blues in the night

During the night there were various activities including games, bands, the lighting of the HOPE lights, food stalls

HOPE

including bacon butties (something my stomach couldn’t handle the thought of at 3 in the morning, despite the pervasive aroma which I would normally relish) but I did see a number of Police enjoying them after a brief team run in full kit, very brief I might say, but it was great to see them there. It would be really cool to see an official team from them next year:)

Candle Tribute Bags

People created candle bags (LED Candles for safety) and left messages for loved ones which twinkled during the night, adding to the spectacle. Reminding people why we were there.

I made an interesting discovery at about 4 in the morning which was that it was pretty much just as painful getting back up and moving after sitting down for a while as it was being back on the track, so back I went.

Looking out from our tent site

Ultimately this was an awesome event, which despite having said after walking through the mud in Kumeu last year, that I wouldn’t do it again, I will most likely do it again next year, although I might train for it next time. After all I can’t be satisfied with only 44km in 2014:)

Don’t judge me

In closing many thanks to my personal sponsors, to all sponsors, huge thanks to the many volunteers and kudos to the cancer survivors. Cancer doesn’t respect age, gender, ethnicity or anything else and I doubt there is anyone who hasn’t been touched by it themselves or through a friend, family member or colleague.

One footnote. I’m seeing ads on TV for cycling for cancer and other events, which appear to be commercially funded. I didn’t see any news media at this event at all, despite the number of people all giving their time for free other than a TV crew who appeared to be recording a documentary. Where was the NZ Herald? Where were the radio stations? Where was TV One and TV 3? Where was the North Shore Times?

Smart Wallet Coming from Google

The Smart Wallet is coming says the Herald this morning.

I’m sorry but I have to laugh. A number of us have been trying to convince Vodafone and Telecom in New Zealand to do this for years. All I used to hear was ARPU and its not core business, while I was saying imagine having half a percent of the revenue. It’s a ubiquitous device people, your mobile is the only thing you always have on you, perhaps besides your wedding or engagement ring.

Ericsson had a proof of concept drinks vending machine in Auckland where you could  text for a drink at least 15 years ago. New Zealand used to be a centre of excellence for Voda back then. NZ was the first to mass adopt EFTPOS in the world, many other firsts, but then we fell asleep. ARPU doesn’t just have to be about data and voice revenue people. Ask eBay what business they are in, its not selling products, its financial services and transaction facilitation, I’m sure they say it better.

Sometimes its hard getting people to listen at the bleeding edge, but imagine if you had listened way back then, which was before Google sets up workspace in Susan Wojcicki‘s garage!

I remember loads of coversations with people like Adam Clark at M-Com, going back even to our days at Advantage back in the late 90’s, along with other members of the Wireless Data Forum where we worked hard to try to drag people into the future such as in this Herald story from the turn of the millenium.

Sorry folks its soap box time. We have so many clever people in this country and yet our leaders don’t recognise the opportunities to cash in on their expertise and knowledge. Years ago we lead the world in many ways including banking  and financial systems, EFTPOS, retail barcode scanning and much more. We still have the expertise, but we seem to have dropped into a spiral of this is the way we do business, its prudent, reliable and safe. Or perhaps they are saying that ots too late because Google is already doing it. But guys, we told you to do it before Google existed. Google isn;t forever and it doesn;t mean that noone can get great ideas of the ground.

If you follow publications like Harvard Business Review, Futurist Magazine and other forward looking publications, they will tell you that your greatest assets are your people, your staff. When was the last time you sat down and asked them what they thought, right down to the intern who’s pushing the mail cart? Why do so many people leave their companies because they feel they can do it better? Recent surveys say half of Kiwi workers want to leave their jobs. It wasn’t all about pay as the following quote shows:

“Asked what they most wanted to improve about their workplace, employees’ top gripes were “systems and processes” (41 per cent), communication (39 per cent), and rewards and recognition (38 per cent).”

There are those who make things happen, those who watch things happen and those who wondered what happened. There are also those who said it would happen but couldn’t get people to pay attention until after it happened. Of course being first doesn’t mean being best or being dominant.

Now as to testing with NFC. I watched a demo with NFC in the Netherlands in 2009 and it was cool. There were 2 phones in Europe at the time that had NFC, both from Nokia. Now that Vodafone is going to have a look at NFC in NZ, how many models of phone do we have that support the technology today? How long would it take before an early majority of people had a capable device? Just because Google is looking at NFC, does that make it the best technology? Are there alternatives? If we were best placed to implement mass adoption of EFTPOS and bar code scanning, could we be well placed for m-Commerce on mobiles? Ask Rod Drury or Adam Clark.

I’m just saying……………

The end of Whitcoulls and Borders in New Zealand

If you have a Borders or Whitcoulls voucher, even if you hate the idea of spending double to be allowed to spend your voucher, I recommend you do it quickly, because within a couple of weeks it will be worthless. It was interesting to see that there is no mention of the current situation on the Borders website which talks about eBooks coming soon, although Whitcoulls have been a bit more responsible with a home page announcement.

The demise of these companies isn’t about eBooks, it is largely around debt as pointed out by Liam Dann in this morning’s Business Section of the NZ Herald.  and the business models. I’m not going to discuss the debt because that doesn’t reflect on the industry itself, it reflects on higher level financial decisions and the economy, not on the book trade.

Book stores and music stores are in industries that are steeped in history of “this is how we’ve done it for the last 50 years and why change it if it aint broke”.

As was mentioned in today’s NZ Herald story by Isaac Davison, “In 2010, 9.67 million books were sold, an increase of 1.2 per cent in volume but 0.1 per cent down in value against 2009. This was despite the mark-up on books in New Zealand, which saw paperbacks sold for as much as $20 more than online, even after shipping costs.”

So much for Amazon (of course there were a huge number of Kiwis including myself who purchased from Amazon as well) being the cause of the demise of our local stores.

I also appreciated the comment in the same story from Jo McColl of Unity Books that many people bought hard copy books as a consequence of having purchased eBooks. I’ve done that too. I read eBooks, listen to Audio Books and still have a personal library of around 2,000 print books. The same with music, I listen to lots of music online but have still purchased at least 10 CD’s so far this year.

I might have to go to a separate blog about how Whitcoulls and Borders business model needed to change in order to stay viable and vibrant (ignoring REDGroup‘s debt which doesn’t reflect on the book trade business model itself) because for these guys its too late unless they get a savvy new owner (who will not purchase the chains’ debt) who is ready to adopt a new business model.

REDGroup have called in Administrators. I don’t care who the administrators are. Their role is a short term one and it isn’t about changing the business model or trading back into profit. It is about the creditors.

They will try to negotiate with the book publishers and wholesalers and other suppliers who are desperate to get paid for their product and worried about their future viability in NZ. Inland Revenue want their taxes and will be first in the queue.

They will need to negotiate with the 1,000 staff who will have to have new short term contracts and will be justifiably worried about whether they will get paid at all, let alone have a future with the chain, but at the same time, will be essential should they find a new buyer for the chains.

Based on the outcome of their negotiations a decision will need to be made on whether to go into receivership which is next most likely step. If that happens, enjoy the book sale, because there will be many bargains up for grabs.

The shame of it is that (outside of the decisions that got REDGroup into this financial position) the problem in the trade is that the business model needed to change and like the music industry and other industries, the people running them don’t get it. They should have learned from the music industry, which still doesn’t get it. Other industries who don’t get it include banking, telecommunications and consumer electronics to name a few.

What should they have done and what can other retail businesses do in order to not follow Borders and Whitcoulls into the mire? Subscribe to my blog and I’ll give you a few pointers for free. It isn’t rocket science, but it is a fundamental shift in thinking, whilst also remembering the fundamental simple principles of retail and distributon.

We live in a new world, its exciting and there is a lot of money to be made, but the fatal flaw is thinking that if you do the same thing you have always done, that you will get a different result.

There is an RSS feed to this blog. Come back and read some of my ideas on how companies like Whitcoulls and Borders can thrive and prosper.

Here are a few things I would look at:

• Understanding your business
• Communication with customers
• Communication with staff
• Distribution methods
• Stock turn and inventory management
• Engagement
• In Store Events
• Proximity based marketing
• Shelf Management
• Relationships with community
• Relationships with education
• Location Based Business Analytics
• The Internet
• Gift Registry

I could and probably will go on. The answers are a mixture of the old and the new, neither of which these chains have effectively managed. Borders started in the right direction in the US, but didn’t continue the evolution. International chains like Borders and WH Smith focussed more on the  era of globalization than evolution of the business model. Something that would have made short term heroes who have probably made their money and moved on, but was only ever going to be short term.

New Ways To Read The News

I’ve written before about the newspaper industry and why newspapers will fade away. In Jeff Jarvis’ book What Would Google Do? there is a prediction that the last newspaper will be printed in 2040.

I no longer subscribe to a daily paper. I do scan the office copy and have a Firefox widget that gives me access to my local paper the New Zealand Herald although they haven’t updated it since March and it doesn’t work properly with the latest Firefox version.

Where I get most of my news from is in fact Twitter. Lots of people still don’t understand the power of Twitter. I’ve found it is the best way to get up to date information about what is going on locally and internationally. If I want to get information, I simply do a search on my Twitter client, Hootsuite, which I can save as a stream so I don’t have to keep searching.

In addition, I use the paper.ly service and have 2 daily Twitter newspapers where the content is generated by the people or businesses I follow. I have 2 daily papers. One is for my generic Twitter account, and the other is for my songwriting business.

The service I use is called Paper.li and my daily online newspapers which you can subscribe to for free are the Luigi Cappel Daily and the other is my Cappel Music paper. I can go to either of these papers and read stories that are of interest to me. The reason I can do this, is because it aggregates Twitter stories with links from people I follow.

A benefit of this is that it focuses me on following people that have something to say that I am in fact interested in. So if you follow me on Twitter you will see that I typically hover around the 2,000 follows as opposed to some people who follow and collect people like they were trying to follow everyone. If I follow you and your tweets don’t interest me, I won’t be following you for long. Doesn’t mean you don’t have something valid to say, just that I only have so much time and there is so much going on.

So my newspaper has a front page and today it includes stories such as Google TV devices being delayed, South Korea’s military exercises, arrests in a UK terror plot, the latest in the Pike River Coal Mine Disaster, faulty Kindles and more. There is a Stories Page, an Arts and Entertainment Page, a Technology Page, and more. You can even subscribe to my paper, or make your own and its all free.

I mentioned searches on Twitter for news as well. I won’t go into hashtags, you can google that if you are interested, but for a couple of examples, here is a search on Heathrow, which has been closed for several days because of snow and ice. The best way to find out what is going on is from people who are there. You’ll probably find photos and lots of human interest stories as well as the latest information. Interesting as I write this, Sky News were saying on TV that Heathrow Airport doesn’t want their cameras at the airport interviewing angry people waiting for their delayed flights.

Another topical example is North Korea which is obviously of great concern to those of us who don’t want to see a new war front.

This isn’t the only way I get news, I also have an iGoogle page which is my RSS feed aggregator. I keep standard news searches there for things that interest me as well as tools such as currency converters, time zone calculations so I don’t miss my online tutorials from Berklee Music out of Boston, weather forecasts and lots more.

So do I need a print newspaper? No. Is that good? Well putting my ecological hat on, according to Wikipedia, 35% of all trees felled are used to generate paper. Newspapers must be a massive proportion of that. We know that we need trees to combat climate change, so I’m doing my little bit:)

Death of the newspaper

On Living Longer

I’ve decided I want to live longer.  I love technology and I love this world of change and the ability to be involved in this technological era. I have things to contribute and I want to be active in ICT, Location Based Services and also as a songwriter. I want to see my children and grandchildren grow up and explore this ever changing world and see what they make of it.

I’m going to have to work longer, that was always expected, but then providing my Maslow and Herzberg needs are met, I enjoy working. I enjoy making a difference, helping people achieve their goals. I enjoy learning, watching what is helping in my spheres of interest, particularly those mentioned above. I enjoy collaborating and networking and am particularly passionate about seeing New Zealand step up to the plate and continuing to innovate and achieve greater success on the world stage.

I reckon a healthy target for me would be 120 given medical advances now and in the future. My greatest risks are probably heart and cancer, with the determining factors being nature and nurture and my general disposition i.e. my attitude and happiness.

One thing that is obvious is that I have to look after my financial well being. If I continue to work, then raising the retirement age isn’t going to be a major for me. If I am enjoying my work, see a future for myself where I can contribute from my experience, passion and knowledge and can continue to grow, I wouldn’t be expecting to retire at 67.

I know I can’t rely on the Government to give me any kind of lifestyle on the retirement pension anyway. Our budget deficit has just been raised to over $15b and despite some significant successes, we still don’t have an infrastructure that really supports innovation. We tend to take credit once people are successful, but most successful innovators tend to be successful in spite of the country’s and their employers contribution rather than because of it.

So my first considerations as I start goal setting and planning will be how I can maintain my lifestyle in the years to come, continue to build an asset base so that when I wind down to a shorter working week I can continue to enjoy a lifestyle and if I should be forced into retirement through poor health (which is not the plan) I can still live comfortably, which no one can in NZ on a pension or benefit. I have a super scheme, I still have a mortgage. I am closing down my rental property LAQC and have sold my rental property. The Government doesn’t want people be able to claim losses from their expenses and without that I can’t afford to own rentals. I’ve invested in public companies before, but unless you are buying and selling daily, this is in my opinion a far greater risk business. Even the biggest companies make mistakes or get caught up in circumstances beyond their control and shareholders unless they are big, have little or no control over their destiny. How many Kiwis lost their life savings in the past by investing in ‘rock solid’ companies?

So I’ll invest in myself. I am studying song writing at Berklee Music on-line, which is costing me a small fortune, but if I can score 1 or 2 hits somewhere along the way, I’ll recoup that investment. I study the industries I’m involved in daily through the media, the occasional conference, networking in person and through social media such as LinkedIn and Twitter and I read a lot.

I have and continue to amass a huge amount of local and international experience in a number of industries, particularly in the application of leading edge technologies to solving business problems. Experience, I have learned takes years and is perhaps something that is least appreciated by younger people who come out of university thinking they know everything and by people who have stuck in one industry or a very small number of companies during their work career.

So to cut a long story short, I need to start planning for my long future. I need to consider a range of aspects, particularly how I want to live those years, what I want to do in them, what I want to contribute, what capital I need, how to maintain my health and fitness. Must be time for some goal setting and dream building.

I’ll leave the last word for now to Anne Brunet (who came via that other little university in Boston (not Berklee Music, but Harvard) and Thomas Rando of Stanford U.

Note the real meat of this video starts around 21 minutes in.

Since When Do Major Sporting Events Govern Countries?

Making my first coffee today in the office at 8AM I noticed a story on the front page of the NZ Herald. Funny I can’t seem to find it online, but there were loads of results on the web’s news pages.I’ll share the Huffington Post story here because I can’t find the NZ Herald story online for some strange reason.

Basically the story is that Dutch Brewery Bavaria has been selling orange mini skirts to soccer fans as an ambush marketing stunt.  The clothes were available for sale in the Netherlands and as a very nationalistic country, it is normal behaviour for Dutch people to wear Orange on major occasions such as sporting events and also for children on Queen’s Birthday. So many Dutch people bought these skirts and wore them to the FIFA World Cup match against Denmark. The clothing had a tiny little label that would be very difficult to see with the Bavaria brand on it.

That wasn’t the problem though. The problem was that they allegedly paid a group of 36 blondes to wear them at the match, which is against the rules of sponsorship, where Budweiser are the only official beer sponsor of the map and have exclusive marketing rights. The story in the Herald said that 2 of the 36 women were arrested and charged and if convicted could face fines from 1,000 Rand to a term in prison. Subsequently they were released on Bail and FIFA has said they will not be charging the individuals, they will be bringing charges against the Bavaria Brewery itself.

As a marketer, I appreciate that brands pay outrageously high sponsorship fees to be able to advertise at major sporting events and expect protection, but how far should they be allowed to go? If I like a brand, why shouldn’t I be allowed to wear their clothing. I play poker and have played in tournaments sponsored by Jack Daniels and have won Jack Daniels clothing. If a group of my friends who also won their branded clothing to an event, could I be in trouble? If the organisers of the poker tournament encouraged me to wear their clothing at the event, would they be in trouble? Remember that the logo on the clothing, these 36 girls were wearing was only on a tiny tag that if you wanted to read it, you would have to get so close to the garment that you might get arrested on other charges.

Next year we have the 2011 Rugby World Cup in New Zealand and the International Rugby Board is running by the same rules. According to the IRB even the letters RWC in succession have been trade marked. In effect I could be breaking the law just be blogging the letters RWC. When did it become possible for a sporting body to prosecute people or businesses for using 3 letters in succession. I mean, we only have 26 letters in our alphabet! So what if they were the initials for your company? Are you breaking the law? If I worked for or supported the Roger Wright Centre in Christchurch, and they had corporate clothing, I wouldn’t be allowed to wear it to any World Cup matches in New Zealand.

So what happens to other companies or organisations that use RWC in their name? Have they lost the rights to their business names? What happens if their staff want to be proud of the company and go to a match in company clothing? RWC stands for Redwood City in California. It stands for Roberts Wesleyan College in Rochester New York which has a proud sporting history.

I think this is very scary and another example of large corporations wanting to own and control everything. Some of those corporations in the drug world may now own the patents to some of my DNA!

Anyway, before you go to any of the matches in South Africa this year or in New Zealand next year, make sure you don’t have any clothing showing off any brands that haven’t paid the IRB for the use of the letters RWC or any of the other trademarked groups of letters. They probably won’t have Sky in the holding cells.

On Human Singularity, IQ and EQ

Barton Kunstler wrote an enlightening article in The Futurist entitled The Singularity’s Impact on Business Leaders: A Scenario, where amongst other insightful information, he pondered the question of how technologically enhanced people in a workplace environment would interact with ‘normal individuals’. It gave me a number of EUREKA moments that I may or may not get into in this blog.

In the latest copy of IT Brief a publication of Action Media, the editorial by Clare Coulson talked about IQ and EQ and how they often don’t come together. This is very true, but there is a tension that Barton Kunstler picked up on wasn’t so much the problem for people with high IQ, but with their ‘peers’ acceptance or intimidation, intolerance by people who might feel threatened by their enhanced capabilities.

He postulated that management in a traditional environment, which evolved as an “efficient survival and social-enhancement mechanism. He suggested that human beings who  had enhanced mental, perceptual and physiological capability would totally disrupt the status quo.

My take from this was that the lack of EQ in the average manager would consider these people known as ESI’s or enhanced singular individuals as a threat, which from an instinctive perspective, in the evolved human brain could be perceived as a threat to the status quo and the ‘superior’ position of today’s ‘Manager’, which could be in fact any person in an authority position.

This could be a fatal flaw and will be a major problem faced in all areas where people are bred or enhanced to have a higher intellect. This could be simply a greater ability to use their natural intelligence, or a connection to external intelligence such as a computer. I don’t want to go into the feasibility of this in this blog, because I have already covered this to some degree in my previous blog, Singularity and ESI’s, which talked about people who have lost limbs and can control prosthesis’ with their brains, which is already relatively common place.

So if we assume this is possible and perhaps already taking place in the labs at DARPA and other well financed institutions, then how can we deal with this problem? The first aspect of this is defining the problem. Is the problem that people with high IQ’s, don’t have high EQ, or is it that the people who don’t have a high IQ don’t have high EQ either?

A progressive manager in today’s world, will employ best of breed staff on the basis that the better the people in his employ, the more successful the business will be and the more that will reflect on him or her. The traditional manager will not want people smarter than they are and will feel threatened by them. I believe the latter is more prevalent, certainly from my personal experience.

An argument that many people put forward is that people with high IQ’s don’t have high EQ (required for rational human type problem solving). In some cases that is true. There are many case studies of people who were encouraged at an early age to study hard, be it music, maths, linguistics, what they studied doesn’t really matter, it was their inherent ability to study and I suspect that those people would have been good at what ever discipline they chose. So we see students going to university at the age of 13 or 14.

Many of these kids have degrees before their age group peers finish high school. In many cases they are poorly tolerated by their fellow university students, who can’t relate to them and drift into a lonely life. The relating makes sense, the social life of an average aged university student is very different to a pubescent teenager. They are barely emotionally compatible and some parents do their best to ensure that young gifted children in this situation still get to play sport and enjoy their childhood, which in some cases is very successful, but those children often find that they are intellectually so far ahead of the others, that they find the chatter childish and can no longer relate, so they are left in limbo.

Most public education systems lack support for gifted children and a common thread is that gifted children suffer from asynchronous development and that they need to stay within their own age group in order to develop social behaviors, physical coordination and dexterity and emotional maturity. They may lift them a level above their age group, but little more is done for them. Many gifted children are home schooled where they come from parents who were also intellectually gifted and learned from the lack of support they grew up with.

A serious problem I see for the future is intolerance of gifted people, or holding them back, limiting their independence and controlling what they can and can’t do.

For example, in the military, they are looking at developing combat personnel with extreme strength, fast reactions and reasoning. But what traditional military leader who has worked their way up the ranks is going to accept a junior ESI telling them what to do? This is highly unlikely and will cause all sorts of stress.

I can see more success in the fields of science, but if and when ESI’s are developed, however that takes place, there is going to be a serious ‘Us and Them’ situation taking place and this will lead to workforce and community problems between the enhanced humans and as Kunstler calls them, the ‘Norms’.

Living in New Zealand, we have an endemic Tall Poppy Syndrome attitude towards people who appear to be brighter than others, or more likely to over achieve. It is interesting that Wikipedia singles out the UK, Ireland, Australia and New Zealand as being countries that particularly single out overachievers, unless it is in the area of sport.

Kiwis will celebrate intelligence after the event, but often it takes a little help along the way. Ernest Rutherford was credited with having a gifted teacher, who helped him on his way to splitting the atom.

Other Kiwi children with high intelligence have had different experiences. For example a child who was exhaustively tested for 2 weeks by the Psychology Department of Auckland University and told he had an IQ of in excess of 165, was frequently bullied by a teacher who was incensed with being corrected by a child of 11. According to one web site, Einstein’s IQ was 160 as was Bill Gates. Charles Darwin apparently ranked 165. This student, as a result of school zoning was sent to a school with a brilliant history of rugby success, but a very poor academic record and certainly no support for a child who was reading and understanding Kafka and cosmic string theory.

Another common experience in New Zealand colleges is where children have been  threatened by their lesser performing peers that they will be beaten up if their exam results are significantly higher. In many Kiwi schools, getting on the 1st 15 in rugby is a far more highly praised achievement, yet those with intellectual prowess could well be the ones to combine Kiwi ingenuity with intelligence to build the country up as a knowledge society.

I want to ponder this some more, because ESI’s are being ‘created’ as I write this and the problem is, as Kunstler identified: How can ESI’s and Norms coexist? It doesn’t take a super brain to known that human’s are damaging our planet. Humans are a wonder of nature and their ascendancy to governing and damaging the planet is perhaps a result of their poor EQ. Logic might suggest that humans are bad for the longevity of life on earth. An ESI might decide that the best way to deal with this situation is to control the norms or eliminate them.

Note to self, read Vernor Vinge and see what he has to say, because the common thread that comes to me so often is Science Fiction becoming reality.

Perhaps what we need is another disruption to deal with the disruption. In effect take away the threat of human singularity, while embracing it’s ability to do good, rather than making better combat warriors.

The last word today goes to the many New Zealand Members of Parliament who abused their privileges and ministerial credit cards in droves. It appears that they have been rorting the system for years, but over the last year, have been getting caught out on everything from $1,000 lunches to buying themselves things like a new set of golf clubs. Add that to listening to them on radio or watching them on Parliament TV, you would have to wonder if EQ is on their qualification set.

NZ Herald Landlords taking money we need

It’s soapbox time folks. Over the last week, there have been several stories in the NZ media about businesses complaining that people are investing in rental properties instead of buying shares and options in companies on the share market. The latest was in yesterday’s NZ Herald.

I take exception to their bleating and here’s why. Many years ago I worked for a company called RC Dimock as a divisional sales manager. A number of us got together under the guidance of the Financial Controller and formed a share club. We all put money in each week and collaborated on which companies we would invest in.

I really enjoyed it. I read every copy of NBR, charted the daily value of stocks, learned about all aspects of stocks and bonds and invested more in our own company, my employer when we were purchased by Anzon Investments. As time went on, I started investing independently, continued staying up to date with large reliable companies and punted on more risky investments in various industries.

I had my own broker and whilst my investments were not massive, I was young and suspecting that superannuation was not going to give me any sort of lifestyle, I was looking for ways to improve that situation when it came.

As well as Anzon, I joined many people who invested their life savings in NZ stalwarts including Brierley Investments, Carter Holt, Robert Jones and many other companies. Then came Black Tuesday and many Kiwis lost their entire retirement savings.

Friends and colleagues lost almost everything they had, whilst the senior managers of the public companies moved on and in many cases their old boys club helped them pick themselves up again.

When I got married and started a family, we bought our first modest home and gave up any form of lifestyle for a few years paying at times over 21% interest, but we were building some security. Other people’s poor business decisions and the economic climate were not going to take this from us, providing we were able to maintain the payments.

Subsequently I worked for a company which was embezzled by it’s CEO and lost 10’s of thousands of dollars in salary, commissions and a large company credit card bill that my boss had run up without my knowledge. I then learned what it means to get a company credit card and you sign a form in good faith saying that you are jointly and severally liable for a company credit card. The credit card company who were coincidentally owned by my bank told me that I could either pay for the company credit card, or they would sell my house and give me the change after the 9 month bill was paid.

Further in my career, when I was making a lot of money for my new employer of almost 7 years, I was made redundant when the company was sold, along with several of my colleagues and my MD. The decision was made on the basis of a spreadsheet looking only at what they were paying us, not the great success we were achieving, over budget in ebit and sales.

So forgive me for having a lack of faith in business as a way of protecting my future lifestyle if and when I reach retirement age.

I started learning about rental properties, LAQC company structures, negative gearing and tax benefits, in as much as being able to claim depreciation and costs against my personal income and invested in a rental property.

Some people thought I was rich because I had a rental property, but my own home remained modest and I was having to subsidise the rental to cover the cost of the 100% mortgage, i.e. I had zero equity. My first tenants were a young family with 4 kids. Sometimes they would call me and say they couldn’t make the rent and could they pay the following week. I was paying around $170 a week to top up the mortgage, because the rent didn’t cover it. Then there was property insurance, fixing appliances, calling in drainlayers when they tried to flush nappies and other unmentionables down the toilet. These are just a few of the issues I had, and if it wasn’t for the ability to recover some of these losses against my income tax I would have gone broke.

The family were never going to be able to buy their own home and didn’t take great care of mine. They couldn’t pay a rent that would cover my costs, market rents did not reflect the cost of owning property. My hope was that over time the property value would increase and I would recoup my losses.

The key to my rationale, which I still subscribe to, is that I was making my own decisions and having control in the level of risk I was prepared to take. I wasn’t going to have my safety net taken away by some entrepreneur who was travelling first class around the world, who was able to walk away and start again when he had spent all my investment savings.

Owning a rental property is a business. There is a need for rental properties. The Government has quit most of their State Housing stock and people who can’t afford to buy their own homes, around 35% of the NZ population, over 1.5 million people do not own their own homes. So who is going to take responsibility for them?

When people set up a public company and use our funds to run them and take risks with, we have no control over how they use our money. If things turn sour as they have for many Kiwis trying to invest their hard earned money, they walk away and set up their next business. Investing in public or private companies is high risk. For people who can afford that risk, great, enjoy. But most owners (think big mortgage) of rental properties are not wealthy people, they are just people trying to make sure they can afford a little lifestyle when they retire without being a burden on their family. It is not easy owning rental property and the odd example of someone who has built up a rental empire is the exception, not the rule. The majority are Mum’s and Dad’s who don’t want to live on a combined income of $478 a week.

Could you live on $478 a week including rent, power and phone? What would that give you for food? Forget entertainment. On the other side, there is the potential for people to live much longer than in previous years and with Baby Boomers, less tax payers to heklp support them.

If the Government wants us to invest in business instead of rental property, they should give us some security against the risk of public companies. Of course they will also have to invest in providing rental accomodation for the 35% of us who can’t afford to own their own homes. What are the odds of that? About the same as that of people who invested their life savings in Brierley Investment shares. Telecom shares anyone?

Low Carbon Future

I’ve just finished reading an excellent story by Chris Barton in the NZ Herald, which is a good primer for the Copenhagen conference that John Key is going to? The cricket on TV is on in the background and apparently Key is in Wellington watching New Zealand vs Pakistan, so he doesn’t seem to be in a hurry to get to the airport.

He quotes Phil Scadden, a geo-scientist from Dunedin, as saying that by 2025 we could cover all our energy needs using wind, hydro, geothermal and other relatively green sources if we were prepared to spend a great deal of money.

I find it hard to believe that NZ will spend the money, especially if we are insistent on Kyoto and other deals which would require us to pay other countries who have less carbon emissions than us. For my money I think that we should invest the same amount of money on cleaning up our own act.

I ask myself if we can afford to be prissy about seeing lots of wind turbines on hilltops. Personally I think they look really good. I was in the Netherlands earlier this year and the site of hundreds of wind turbines was quite inspiring. I don’t have a problem with having them far enough away so they don’t cause noise polution. We have plenty of great spots in the country that are almost always windy, such as Ohakea, which I believe from memory means place where four winds meet. It certainly never disappointed when I used to go down to the Ohakea Air Base to race land yachts, a very green speed sport:)

Something that annoys me when we talk about clean and green in this country is the lack of emission controls for diesel vehicles. If I was given a dollar for each diesel soot sprewing truck, with black soot backs delivering frozen meat, I would be able to retire today.

I’d also like to know why NZ is following other countries, with Feed-in Tarriffs, which I have previously blogged about. The concept was raised a long time ago by the Green Party, where there would be subsidies and incentives for people to put solar panels on their rooves and allowed them to sell surplus power into the grid.

Anyway, this whole situation disturbs me. Instead of fixing our problem at home, we want to pay other countries who are more fortunate than us, in having more trees etc. NZ has the ability to be self sustainable if we put our brilliant scientists and inventers on the job. We could be isolated from a lot of the problems of climate change in other parts of the world. Once we have it licked, then we can give them access to our know how. That might make a great new export for us.

For now, I’ve been for a 9 1/2 km bush walk/jog, finished my blog and am going to go and by an electric lawn mower. It is plastic, doesn’t need oil or petrol, won’t rust and will therefore last much longer.