On the Firing Line

The Book of the Week is “On the Firing Line” by Gil Amelio with William L. Simon, published in 1998. In this informative book, Amelio chronicles his short tenure as Apple Computer’s CEO from early 1995 to mid 1997.

Some might say Amelio made a foolhardy decision to take on the challenge of turning Apple around, when he had a secure and promising future as the CEO of National Semiconductor, whose recovery he had spearheaded. Throughout the book, he discusses the series of difficulties he faced and admits his errors in judgment.

Amelio handed grist to his critics on a silver platter because he allowed his employees to talk to the media, which had a field day on many fronts. The media also played him for a fool.

There were numerous factors out of the CEO’s control that also gave him a tough time. His predecessor allowed extreme price cuts on Apple’s products, and the sales team was playing a short-sighted game– a vicious cycle every holiday season, whereby they would give deep last-minute discounts to retailers to move inventory, putting a better face than otherwise on the financial condition of the company, as its fiscal year started on October 1.

Amelio was distressed to find that the corporate culture was fragmented along departmental lines. The engineers worked on products the sales department had no intention of selling. “Apple never had an official statement of strategy – which inevitably means that every executive, and most managers, design their own versions. Everyone pursues their own goals, rowing frantically but each pulling in a different direction.” One reason was that managers knew the company was in dire financial straits and feared their projects were going to be cut.

Some thought Amelio desperate and a sellout for holding meetings with the enemy, Bill Gates, to propose making Apple products compatible with Microsoft products. Nonetheless, he was wary of Gates because Gates was unreasonably stingy in his negotiations.

With Amelio at the helm, performance of the desktop models improved tenfold but sales fell. He attributed this to the presence of a subjective element in people’s reaction to Apple “…irrelevant to product quality, and has … a lot to do with what they read in the newspapers and how comfortable they are with the state of the company.”

Read the book to learn: how Amelio was too trusting when he negotiated his employment contract; about the fronts on which he did make progress, and how he was done in by Steve Jobs.

On the Wings of Eagles

The Book of the Week is “On the Wings of Eagles” by Ken Follett, published in 1983. This ebook recounts how a group of employees from the American company EDS, stationed in Tehran, underwent an incredible, life-changing experience in early 1979, at the start of the Iranian revolution. H. Ross Perot, CEO of EDS, got “down in the trenches” with his men, and toward the end of the story, was portrayed as a Daddy Warbucks character; his endless money and friends in high places helped him magically remove bureaucratic obstacles to get things done in a hurry.

The Iranian government was EDS’s sole client in Iran. In mid-1978, it started to default on EDS’s multi-million dollar bill for engineering social-security and health insurance software. The extremely suspenseful series of events was focused on two EDS men in particular whom one Iranian in particular from the old (Shah’s) regime had arrested and jailed. He set their bail at an outrageous $13 million in a petty power game. There were three ways the company could get those two employees released from jail: “…legal pressure, political pressure, or pay the bail.” Or a few other ways, which were illegal.

Assistance and sympathy of the officials at Tehran’s American Embassy for EDS were less than forthcoming. There were many more serious problems to deal with.

Initially, the aforesaid Perot exhibited an American mentality, thinking that he and the bad guy could settle the matter with legalistic negotiations. However, Iran was not playing by the same rules. He then came up with a hare-brained scheme, which would involve breaking various federal laws if certain of its components were to occur in the United States.

As an aside– this blogger found it hard to get used to the vocabulary that Americans used at the time of the book’s publication– “…what the McDonald’s girl said to me…”  “…blond Swedish girl in her twenties,” “stewardesses” and “knapsack,” among other old-fashioned terms. There was also a funny scene late in the group’s emotionally traumatic saga. After surviving many serious threats to their lives over the course of weeks, the EDS group was on a plane that was having mechanical trouble in the air. “I can’t believe this,’ said Paul. He lit a cigarette.”

Read the book to learn the fate of the individuals involved in this riveting thriller.

The Hoax

The Book of the Week is “The Hoax” by Clifford Irving, published 2006.

This is a personal account of an incredibly talented, savvy phony and writer, who, starting in 1969, with a co-conspirator, Dick Suskind, proceeded to write the autobiography of reclusive businessman Howard Hughes; phony, because he had never met Hughes.

McGraw Hill, Irving’s publisher, believed Irving when he told them he had actually spent time with Hughes. McGraw wanted to believe that it was going to produce an exclusive work on a billionaire businessman who, up to that point, had refused to let anyone publicize significant information on his personal life.

Irving and Suskind perpetrated their deception because: trying to get away with preying on the gullibility and greed of the publishing industry was a challenge that would make them feel alive.

Pursuant to the writers’ scheme, the book was “…based on fact and yet we had the freedom and power to infuse fact with the drama of fiction.” The writers did extensive research– spent hours poring over old city telephone directories, old maps, surveys, society columns and classified documents in order to perfectly embody Hughes’ voice in print. When they were concocting anecdotes, they inserted (real) people who were dead because dead people couldn’t sue for libel.

Incidentally, a whole other book could be written on the name for the marital anguish: soul-vomit, that Irving caused his wife with his adulterous behavior– that has so much female appeal on the big screen and in books.

Read the book to learn what was becoming of Irving and Suskind when Irving was heard to say, “You know, I’ve had a lot of experience in this past year burning manuscripts. It takes a long time and it’s not easy.”

Heads in Beds – Bonus Post

“Heads in Beds” by Jacob Tomsky (pen name), published in 2012. This ebook is the career memoir of a hotel employee.

The author provides tips and tricks for gaming situations in the jobs of valet, housekeeping manager and front desk manager. He writes that entry-level workers start on the overnight shift, laboring on weekends and holidays. The managerial positions are stressful with long hours and no overtime pay.

The dead-end position of bellman pays well, but never offers advancement, just better shifts. The reason is that hauling luggage allows for frequent collection of cash tips which might be shared with fellow employees, but not with the IRS. Some workers singularly collect considerable tips on the sly by developing one-on-one relationships with guests– reserving the best rooms for them, “… supervising the bill, and essentially being a private concierge…”

Union membership offers lots of paid time off and job security. However, if a private equity firm purchases a hotel but the hotel-property-manager-seller continues to manage the hotel, there might be extensive replacement of non-union personnel with inexperienced, lower-paid incompetents.

Furthermore, top management might impose petty, draconian supervision that makes life difficult and emotionally tiring for the workers– as happened with Tomsky’s employer. The quality of customer service declines forthwith. Nevertheless, Tomsky and his colleagues were under pressure to keep guests coming to the hotel, so when management turned penny-pincher and minimized one freebie, workers continued to grant others, like room upgrades, free breakfast, late checkout, reduced minibar charges, etc.

Tomsky also relates that immediate causes for termination include “stealing and sleeping on the job.” Movie and minibar are the charges that guests most often challenge. Both guests and hotel employees have money-saving or money-making schemes. The author writes, “… beware of any employees not wearing name tags. They are up to something and don’t wish to be identified.” Some guests make odd requests. One time, eight female guests rumored to be partying, requested a Bible. The author writes, as it turned out, “They just wanted to roll a joint, simple as that.”

Read the book to learn the phrases hotel employees and guests should use to get desired results, the kinds of punishments the hotel agents mete out to difficult guests, and how guests can get the most out of their stay.

American Radical

The Book of the Week is “American Radical, The Life and Times of I.F. Stone” by D.D. Guttenplan, published in 2009. This is the biography of a muckraking journalist, who wrote of “good, honest graft” and the “…human wreckage piling up around me.”

He was born Isadore Feinstein on Christmas Eve, 1907 in Philadelphia. He spoke Yiddish as a second language. In 1924, because his grades were below Harvard standards and there was open enrollment for local residents, “Izzy” as he was affectionately known, began attending the University of Pennsylvania. He changed his name to I.F. Stone at the tail end of his twenties.

The year 1955 saw Congressional surveillance of Stone’s weekly publication “Weekly.” Stone launched lawsuits against his oppressors, arguing that public moneys should not be used to violate his 1st Amendment rights to privacy and freedom of the press. He would have lost his lawsuits but for a curious situation.

James Eastland, chief counsel and chairman of the Senate Internal Security Subcommittee, included the New York Times as one of many newspapers and magazines he was surveilling. Stone had embarrassed the Times for pointing out inconsistent behavior: the newspaper’s firing of its employees who were accused of Communist leanings. Yet the Times had published articles arguing for civil rights, anti-segregation, condemning McCarthyism and immigration restrictions. The Times was indignant because it thought it was being singled out for investigation by Eastland. Eastland dropped his investigation.

Other organizations accused of harboring Communists included the Boy Scouts, Voice of America, the USO and YMCA. The Justice Department‘s whole roster of professional informers was finally discredited…” when an ex-Communist admitted to fabricating the allegations against the organizations. In fall 1955, finally, there was vindication of Stone and other activists who were under threat of arrest or deportation or subpoena.

This blogger believes the author’s historical accounts are misleading in spots; he implies that in 1948, when the Israelis had achieved military victory over the Arabs in their war for an independent homeland, the Arabs fled. Historical accounts other than this book say that the Israelis subjected the Arabs to a forced evacuation from their homes where they had been residing for generations.

The result of the Hungarian uprising of 1956, according to the author, was cause for celebration for Stone, because a new government was installed that would impose socialism, and Stone was all for socialism. The author neglects to mention that the Soviets crushed the revolt in an orgy of bloodshed. Then the author goes on to say that Stone misread the Suez Canal Crisis.

Nevertheless, read the book to learn modern history through the eyes of a smartass reporter who called a spade a spade most of the time.

Moving Beyond Words – Bonus Post

This blogger skimmed the ebook “Moving Beyond Words” by Gloria Steinem, published in 2012. It is a collection of articles about Phyllis Freud (a fictional character created to explore how things would be if Sigmund Freud was a female), Steinem’s experiences working at Ms. Magazine in the early 1970’s and other topics.

At Ms. Magazine, Steinem writes that it was like pulling teeth to try to convince Philip Morris to advertise its Virginia Slims cigarettes without the slogan “You’ve Come A Long Way, Baby” in the magazine. “No amount of saying that we, like men, are a segmented market, that we don’t all think alike, does any good.” Through the years, Ms. lost a vast quantity of ad dollars for sticking to its guns, not only at the hands of Philip Morris. “…But no matter how desirable the Ms. readership, our lack of editorial recipes and traditional homemaking articles proves lethal.” This, despite the fact that the Ms. ad sales reps did their homework in providing ample evidence of women’s lifestyle changes, to potential advertisers. Four years of research went into showing that “…women make their own travel choices and business trips” to try to persuade airlines to advertise in Ms. The airlines made various unrelated excuses for advertising elsewhere. The late 1980’s saw the financial troubles of the magazine continue to worsen– not caused by poor subscriber demand, but caused by misguided advertising departments run by men.

In her 1990’s article on economics, Steinem opines that her checkbook was a reflection of her values– what her spending consisted of, and in what amounts. This blogger thinks that the modern-day equivalent of that is physical keys and online passwords. The author also discusses unequal pay for men and women: “Because I was helping to establish speaking fees for other feminists and was giving away some of what I earned, I had become part of the problem.” Recently, this blogger has observed women doing themselves a similar disservice–perpetuating the degrading of all women with their behavior– but might not realize it: Many women post profile-photos on job websites, in which they are nearly topless. This blogger guesses that they think looking sexy will advance their careers. Wearing a strappy or sleeveless top in a professional photo is inappropriate. It’s as unprofessional as wearing flip-flops in a white-collar office. Wearing a top with short sleeves at minimum, would be appropriate. It appears that they want to be treated like sex objects rather than as professional workers who want to be taken seriously.

Read the book to learn of Steinem’s views on and/or experiences with Freud, the strongest woman in the world, working for a women’s magazine, Victoria Woodhull, economics and aging.

Antifragile

The Book of the Week is “Antifragile, Things That Gain From Disorder” by Nassim Nicholas Taleb, published in 2012. In this repetitive ebook, Taleb reiterates a few of the concepts from his earlier book “The Black Swan” and again appears to derive pleasure from pointing out human fallibility. He writes that “Uncertainty, incomplete understanding, disorder, and volatility are members of the same close family.” He shows how people generate inaccurate predictions and draw the wrong conclusions through spurious causality, or “epiphenomena.”

Taleb discusses a state of being he calls “antifragility” (or more often, a lack thereof) in the realms of politics, economics, science, academia and medicine, taking swipes at all of them as he goes along. He gives tips on how systems and individuals can make themselves more antifragile (the opposite of fragile), a good thing. The author also provides real-life and theoretical scenarios that perpetuate fragility.  Humans appear not to be learning from past scenarios, as they continue to make the same mistakes over and over. One example of a real-life scenario includes the economic bailout of certain big companies, by the United States government (and by extension, American taxpayers) in 2008.

Fragility is vulnerability to negative occurrences. Antifragility is the ability to withstand negative occurrences due to various measures taken to reduce risks; this state of being actually benefits from volatility and randomness.

Humans tend to overestimate their ability to predict shocks and rare events (like revolutions, crises or budget deficits), and when the worst happens, it is worse than the previous occasion. Taleb writes that after havoc strikes, blame incorrectly gets assigned to one factor of the big picture. “The focus is wrong even if the logic is comforting.” People need to study the system and its fragility, not events.

One general example Taleb provides of spurious causality includes the questionable, widely-held assumption that academic research is the generator of wealth because so much research comes out of countries that are wealthy. Taleb thinks it is actually the other way around. “We have no evidence that academia helps science and technology, which in turn help practice.” One narrow instance of this was the building of the atomic bomb, in which there was directed research. But in that, there was selection bias and confirmation bias.

Another example that Taleb provides– a theoretical one– is when an Ivy League university scientist lectures a bird on how to fly. The bird takes flight. The scientist hastily writes books, articles and reports stating that the bird listened to him. The university is now an authority on aerial transportation by the avian species. It will implement further studies with funding by the government. Unfortunately, birds do not write books and papers, so we cannot get their side of the story.

The author advocates interventionism in particular areas and not others. He thinks the government should impose restrictions on the size, concentration and speed of entities including itself (obviously idealistic of him) because bigness increases fragility and the probability of disasters. He thinks less is more (do nothing or implement minimal intervention unless a medical condition is life-threatening) when it comes to medicine.

Taleb says education is useful in that it helps a family retain wealth insofar as its descendants use their educations to enter professions that were more lucrative than those of their ancestors. Almost all projects take longer and cost more when an element of uncertainty is added. “We have never had more data than we have now, yet have less predictability than ever.”

Read the book to learn more about: a) errors in human reasoning that aggravate adverse situations;  b) why fragility is increased with fiscal deficits and awarding of prizes in the fields of literature, finance, and economics; c) which actions are helpful in promoting antifragility and d) an inopportune event caused by Taleb’s own fallibility and his reasoning in dealing with it.

In sum, “The problem with people who do not incur harm [suffer no punishment for their influential opinion-making that causes economic collapse or a war] is that they can cherry-pick from statements they’ve made in the past, many of them contradictory, and end up convincing themselves of their intellectual lucidity on the way to the World Economic Forum at Davos.”

Jimi Hendrix

The Book of the Week is “Jimi Hendrix” by Sharon Lawrence, published in 2005. This ebook is the biography of the world-renowned guitarist.

Hendrix suffered numerous hardships and deprivation in his childhood. Born in 1942, he was shuttled among various relatives, including his alcoholic father– divorced from his mother when he was 9; she died when he was in his mid-teens. He developed a passion for music, which was his one solace.

By the mid-1960’s, he had formed a band with two other musicians, and they were touring and recording on an unusually rigorous schedule. This prompted them to resort to partaking of pills, marijuana, hashish and LSD to mitigate severe sleep deprivation and stress.

Hendrix was afforded the opportunity to meet or play music with many other rock stars of his generation. Due to his incredible talent, he experienced tremendous fame very suddenly. Unfortunately, he was too passive and nice. Read the book to learn the details of how Hendrix fared after he allowed numerous greedy, manipulative and ungrateful people to enter his life.

 

Brooklyn Zoo

The Book of the Week is “Brooklyn Zoo” by Darcy Lockman, published in 2012. This is a personal account of an internship of a PhD candidate in psychotherapy.

Lockman started her internship in summer 2007 at Kings County Hospital in Brooklyn, New York State, the final leg of training before she got licensed to practice. Throughout the book, she reveals the lingo, issues and people encountered by clinical psychologists.

A few aspects of the personalities of humans include developmental level (psychotic, borderline or neurotic), and character applicable to it (“masochistic or obsessive or narcissistic or depressive, etc.”). Patients might be diagnosed with a thought disorder, mood disorder or personality disorder, or a combination thereof. These were documented in a reference guide for psychiatry, the “DSM IV.”

During her training, the author saw what she perceived to be a disturbing trend– of treating all ailments, even ones suspected to be psychological in whole or in part, by prescribing drugs with little or no accompanying psychotherapy. The psychiatric professionals at the hospital perceived part of their jobs to be to instill “medication compliance” in patients. Lockman was taught that treatment should include “the talking cure.”

However, it is controversial how effective psychotherapy is in treating addicts, because drugs and alcohol can permanently change the brain chemistry that controls learning. Lockman describes one alcoholic patient’s case: “angry young man plus bad neighborhood plus psychosis equals short life expectancy.”

Since psychotherapists themselves are human, they sometimes cannot help but become emotionally affected by their patients. One time, Lockman realized she was biased by the socio-economic level of a patient she saw: “…upper-middle-class and white… familiar to me.” Lockman later momentarily broke down in front of her supervisor, who told her, “Never apologize for having an emotion. Just make sure you give it some thought.”

Some patients, such as a narcissistic-borderline (personality disorders) married couple, recounted stories of extreme past behaviors, some of which were laughable. The two consisted of a male narcissistic ex-convict and borderline, pregnant female who had four kids total; the oldest two had a different father. The husband had been a pimp, and had committed adultery with one of his employees. The couple ended up at the hospital because they had become physically violent with one another. They had shamelessly revealed this information to Lockman. The husband said, “I’m a shooter, not a hitter.” The wife said she had committed a bank robbery to save her kids from starvation.

Another issue the author had to deal with was the hierarchical nature of the career field. ‘We all needed somebody to buttress our professional worth.” People in different specialties put other ones down. The medical doctors feel superior to psychiatrists; psychiatrists to psychologists; psychologists to social workers.

Read the book to learn the slew of other issues Lockman had to face in her quest for experience in clinical psychology.