Information Rules & Economics Wins

Excuse me while I let this out: ARRRGGGGHHHH!!!!!!

So, why the angst, you ask? Well, for one, thanks for asking, and two, in doing what I do, I often get asked to evaluate new and existing companies. Looked at 3 just today. The problem is that lots of these companies fail to deliver on the two most fundamental truths:

Information Rules and Economics Wins

Yes, and it's also a requirement to have good products and/or services - that people want to buy. And good operations - that can deliver, service, and support the products, services and customers. And most of all, good people - that get their jobs done with smiles, and effectiveness. But ... that's just common sense, right? (Although like dad says: common sense is not so common.)

Seriously, I look at way too many businesses that just don't give me the information, nor the math, that I need to make a rationalized opinion, let alone a decision. Now, of the two issues, the one that gives me the most heartburn, and literally drives me nuts, bonkers, looney tunes - is the math part. I mean really, I'm starting to feel like Jack Nicholson dealing with Nurse Ratched in the movie, One Flew Over The Cuckoos Nest.

Here's the deal: In business, we need to do the math. (Most) everything needs to be explained, measured and justified through math. If we can’t do the financial analysis; measure and show proof-positive results (or expected results) using real numbers that establish and prove true profit - than we don’t do the business, unless we’re willing to take big risks. At the very least, we have to modify our thinking. And if we can’t do the detailed math to rationalize and justify new investments, or new products, or new strategies, or new employees, or new equipment - then we don’t. We save our money.

Companies cannot be started, managed or grown on just theory and speculation. They can’t just be built on good intentions, well-written strategy, or eloquent business plans. I don’t care if you’re a tiny, home-based business - or a small, mid size or Fortune 1000 corporation – you’ve got to do the math. At the same time, numbers don’t always tell the whole story. While numbers shouldn’t lie in-and-of-themselves, they’re not always accurate and don’t always tell the truth (it’s been said that 62% of all stats are worthless, and 20% suspect.) Numbers aren’t always black or white, or fit neatly into rows, columns and spreadsheets. They may need in-depth explanations because they can be interpreted in many different ways - depending on the view, expertise and background of the reporter, and the interpreter.

Net/net - information rules and economics wins.

But you know that already, right!?

Speaking of math, let's play a counting game. Goes like this:

1) Pick your Favorite number between 1- 9,
2) Then multiply that number by 3,

3) Then add 3 to that number,

4) Then multiply that number by 3,

4) Now you should get a 2 digit number,
5) Finally, add those two digits together

Now, take your final number, and match it to the number below, to see how it assigns you with the appropriate "old-school-playground-name-calling" (yea, I got some growing up to do).

1. You're a goof 2. You're a dork 3. You're a dweeb 4. You're a scatterbrain 5. You're a freak 6. You're a spazoid 7. You're a goober 8. You're a bonehead 9. You're awesome 10. You're a bozo

So - how'd you do? Don't tell me, I know the answer. 

Awesome is Good (and so is good information, and good math)!